Summer Internship Project Report On :-

AN ASSESSMENT OF CUSTOMERS
INTERACTION
AND
SATISFACTION

Submitted To :- Submitted By :-
Prof. Supriya Jain Vivek Gupta
MBA II nd Sem.

SUMMER INTERNSHIP PROJECT REPORT

i
 ON
AN ASSESSMENT OF CUSTOMERS INTERACTION
AND
SATISFACTION
AT
MAX RETAIL , INDORE

INDORE MANAGEMENT INSTITUTE

AND
RESEARCH CENTRE

D.A.V.V. UNIVERSITY, INDORE

GUIDED BY- SUBMITTED BY-

Mr. VIKRAM FOZDAR VIVEK GUPTA
(Assistant Store Manager) MBA (FULL TIME)
II SEMSTER

Session (2011-2013)

SUMMER INTERNSHIP PROJECT REPORT

ii
 ON
AN ASSESSMENT OF CUSTOMERS INTERACTION
AND
SATISFACTION
AT
MAX RETAIL, INDORE

SUBMITTED BY-
VIVEK GUPTA
MBA (FULL TIME) II SEMSTER

UNDER THE GUIDANCE OF

Mr. SOURABH SHARMA SIR
(Store Manager)
And

Mr. VIKRAM FOZDAR SIR

(Assistant Store Manager)
MAX RETAIL , INDORE

INDORE MANAGEMENT INSTITUTE

iii
 AND

RESEARCH CENTRE

D.A.V.V. University, INDORE

Session (2011-2013)

DECLARATION

I, Vivek Gupta student of MBA II Semester of Indore Management

Institute And Research center, Indore (2011-2013). Hereby declare that the
project report entitled “AN ASSESSMENT OF CUSTOMRES
INTERACTION AND SATISFACTION AT MAX RETAIL,
INDORE ” is the outcome of my own work and the same has not been
submitted to any university /Institute for the award of any degree or any
professional diploma.

VIVEK GUPTA
MBA (FULL TIME) II SEMESTER

iv
 PREFACE

The research provides an opportunity to a student to demonstrate

application of his / her knowledge, skill and competencies required during
the technical session. Research also helps the student to devote his/ her skill
to analyze the problem to suggest alternative solutions to evaluate them and
to provide feasible recommendations on the provided data.

The research is on the topic of “AN ASSESSMENT OF

CUSTOMERS INTERACTION AND SATISFACTION OF
EMPLOYEE AT MAX RETAIL, INDORE”. Although I have tried my
level to prepare this report an error free report every effort has been made
to offer the most authenticate position with accuracy.

v
 ACKNOWLEDGEMENT

I am immensely grateful to my esteemed guide Mr. VIKRAM FOZDAR,

Assistant Store Manager, Max Retail, Indore whose continued and
invaluable guidance has helped me to learn and produce this project. The
interaction with guide has been a great learning experience for me and I
value it enormously.
Also, I want to thank Prof. Arnav Choudhary for the guidance and support
during the project.
Last but not least, gratitude to all those, who extended there co-operation
directly or indirectly in completion of this project work.

VIVEK GUPTA
MBA (FULL TIME)
II SEMESTER

vi
EXECUTIVE SUMMERY

Marketing theory and practice has become more and more customer
centered, and managers have increased their emphasis on long-term client relationships
because loyalty, stronger relationships and therefore longer customer lifetimes likely
areassociated with a greater degree of cross-buying, a more significant level of
transactions and therefore higher profits. This makes Customer retention rates and
customer share of category purchase as important metrics in customer relationship
management. To maximize these metrics, many firms use relationship marketing
instruments, and loyalty programs or frequency reward programs. But these programs
along with being beneficial are also highly costly. Thus it is important to find out
whether these loyalty programs are influencing the buying behavior of customers or not
and if they are influencing then how impactful is there influence.

Definition of Loyalty card program: The loyalty program provides gratification

to those who require rewards for purchases and avoids additional costs for those who
would buy even without them. Loyalty card program is an integrated system of
marketing actions that aims to make customers more loyal by developing personalized
relationships with them. Relationship marketing focuses on the customer, in the sense
that the firm seeks to create long-term business relations with existing prospects and
customers.

Retailing is one of the oldest business activities in India. But until the
liberalization and deregulation of the Indian economy in the 1990s, it was dominated by
small one-man retail units.
Today's customers have more choice, are better informed and are more
demanding of value and return for their spending money. They look not only for the
products and services that meet their needs at the price they are willing to pay, but for
the merchant that recognizes, appreciates and rewards their patronage. Now a day’s all
big apparel retailers have started the loyalty program with different benefits in order to
satisfy customer needs and wants.

vii
 Top retail players like Max Retail ,shopper stop ,Globus have adopted
loyalty card and The loyalty program is used as a tool for retaining a customers now a
In India the retailers plays vital role in selling goods to the ultimate customer and day by
day number of retailers are increasing tremendously and ultimate end users are being
confused and customers keep on changing the retail store.

The questionnaire survey was taken from 150 customers randomly and
most of them have purchased before at Max Retail. The loyalty program at Max Retail
plays a vital role in retaining a customer and nearly 75% of the customers are using the
green card for more than two year’s Satisfaction level in shopping experience, services,
quality and discount are very high 69.8% of customers who’s using Max Retail green
card for more than 2 years says that the current loyalty program is excellent.

viii
 Index

CHAPTER 1: INTRODUCTION
CHAPTER 2: INDUSTRY PROFILE
CHAPTER 3: COMPANY HISTORY AND PROFILE
CHAPTER 4: THEORITICAL BACKGROUND
CHAPTER 5: OBJECTIVE AND RESEARCH
METHODOLOGY
CHAPTER 6: DATA ANALYSIS AND INTERPRETATION
CHAPTER 7 : FINDINGS
CHAPTER 8: LEARNINGS
CHAPTER 9: CONCLUSION
CHAPTER 10 : ANNEXURES
CHAPTER 11 : BIBLIOGRAPHY

ix
INTRODUCTION

10
 INTRODUCTION

Customer Interaction And Satisfaction

Social psychologists, marketing researchers, and students of consumer behaviour, have

extensively studied the concepts of customer satisfaction and dissatisfaction. The
increasing importance of quality in both Products and manufacturing industries has
also created a proliferation of research, with more than 15,000 academic and trade
articles having been published on the topic of customer satisfaction in the past two
decades (Peterson and Wilson, 1992). Several conferences have been devoted to the
subject and extensive literature reviews have been published (Day, 1977; Hunt, 1977;
LaTour and Peat, 1979; Smart, 1982; Ross, et al., 1987, Barsky, 1992: Oh and Parks,
1997) The result of all this research has been the development of nine distinct theories
of customer satisfaction. The majority of these theories are based on cognitive
psychology, some have received moderate attention, while other theories have been
introduced without any empirical research. The nine theories include:

 expectancy disconfirmation;
 assimilation or cognitive dissonance;

 contrast;

 assimilation-contrast;

 equity;

 attribution;

 comparison-level;

 generalized negativity; and

 value-precept (Oh and Parks, 1997).

Recently, numerous researchers have attempted to apply CS theories developed by

consumer behaviourists in the areas of lodging (Barsky, 1992; Barsky and Labagh,

11
1992; Saleh and Ryan, 1991; Ekinci and Riley, 1998), restaurant (Dube et al., 1994;
Bojanic and Rosen, 1994; Lee and Hing, 1995; Oh and Jeong, 1996), foodProducts
(Almanza et al., 1994), and tourism (Pizam and Milman, 1993; Danaher and Arweiler,
1996; Ryan and Cliff, 1997; Hudson and Shepard, 1998) in order to investigate CS
applicability to the hospitality and tourism industries.

For several decades the word or concept customer satisfaction was of crucial
importance for marketing, managers and the organizations and it is regarded today
central issue to many definitions (Parker and Mathews, 2001). The Oxford Library of
Words and Phrases (1993) emphasize satisfaction as a “release from uncertainty”.
Customer satisfaction can be defined in many ways. Kotler (2000, pg.36) defines
customer satisfaction as one of which is “a person's feelings of pleasure or
disappointment from comparing a product's perceived performance (or outcome) in
relation to his or her expectations”. Another conceptualization given from Homburg et
al. (2005) is that customer satisfaction is a cumulative, worldwide assessment based on
different experiences with a firm. Similarly, Kotler (1991) and Fornell (1992)
characterized satisfaction as an evaluation of quality of products after customers
purchase them and he argues that “high customer satisfaction ratings are widely
believed to be the best indicator of a company’s future profits” (Kotler 1991, pg.19).

Customer loyalty has been examined by many researchers in the past and many of
them have given various definitions around this concept. According to Heskett (2002),
customer loyalty has been regarded as the sina qua non of an effective business
strategy. Dick and Basu (1994, p.99) give a stronger conceptualization for customer
loyalty. They view it as the “strength of the relationship between an individual’s
relative attitude towards an entity (brand, Products, store, or vendor) and repeat
patronage”.

Customer perception of value

Theoretical concept framework and definitions

12
The creation of consumer value has been taken into consideration from many managers
during the 1990s and it was the result of companies’ need to be more competitive and
to fulfill the increasing customer demands (Cravens and Piercy, 2003). Consumer
perceived value depends on “how the customer perceives the benefits of an offering
and the sacrifice that is associated with its purchase” (Jobber, 2004, pg.13). That’s
why, Monroe (1991) and Sweeney (1994) define customer perceived value as the ratio
between perceived benefits and perceived sacrifice. Also, Monroe and Chapman
(1987) suggest that perceived value is a weighted sum of acquisition and transaction
value.

“Customer perceived value can be broadly defined as the customer’s overall

assessment of the utility of a product based on perceptions of what is received and
what is given” (Zeithaml, 1988, p. 14).

Importance of customer perception of value

Many discounters, retail stores and supermarkets now focus to the offering of value-
added Productss and highlight the importance of them to become more competitive
(Kim and Jin, 2002). Examining the effects and impact of consumers’ perception of
value, generally value is very important and crucial to marketers for the success of
companies (Dodds, 1991; Fredericks and Salter, 1995).

The relationship between customer perception of value and customer satisfaction

McDougall and Levesque (2000, p. 394) argued that “customers who perceive they
received value for money are more satisfied than customers who do not perceive they
received value for money”.

LOYALTY PROGRAM:

“Loyalty is one of the great engines of business success”.

The word loyalty has different explanation and it all refer to way of Services. It is
important to define exactly: what is meant by loyalty in the context of Business
Development and Retention.

13
Several broad definitions exist, including the following:
• “The commitment of customers to a particular brand or company”

• “The extent to which your customers continue with key loyalty behavior when
Competitors offer more attractive prices, products, and/or services”

• “Faithful to any person or thing conceived of as deserving fidelity... characterized

by or showing faithfulness”

For this report, loyalty is defined as follows: “Loyalty is a positive belief,

Generated over the course of multiple interactions, in the value that a company and

Its products and/or services provide, which leads to continued interactions and
Purchases over time.”

Loyalty should not be confused with customer satisfaction. Although loyalty is

built on satisfaction, organizations can have satisfaction without loyalty. Customer
Satisfaction is an “opinion measure” about company performance and how
Customers feel their needs were met in past interactions or by past purchases,
Whereas customer loyalty is a results measure that includes expectations of future
behavior.

For example, 75 percent of consumer wireless customers are “satisfied” with

their current service, but 72 percent would be willing to switch to a competing
provider.
Thus, when designing a rewards program to build loyalty, it is critical to think
about how to encourage true long-term customer loyalty and not just fleeting
customer satisfaction.

LOYALTY PROGRAM BASICS

Companies typically have several goals when launching loyalty programs, all
of which are focused on generating greater profits from the program’s members.
14
These goals include

• Improving knowledge of the customer

• Leveraging that knowledge to increase the sales of undersold and/or

highly profitable products/services

• Increasing customer retention and purchase frequency

The most common type of loyalty program begins when a customer enrols.
From that point forward, the organization accurately tracks information about that
“member,” captures the member’s purchases, credits points to the member based on
the rules stored in a loyalty “engine,” categorizes the member in tiers or groups based
on the member’s value to the organization, and enables the member to redeem points
for products or services when various point levels are attained. The specific types of
behaviour that are tracked and rewarded are unique to each industry/company and are
typically linked to the organization’s profitability drivers.

BENIFITS OF LOYALTY PROGRAM:

“Greater Customer Knowledge”

A loyalty program enables a company to gain detailed knowledge about its

customer base with the customer’s consent; customers actually want to provide
transaction and detailed profile information to ensure that they receive the full benefits
of being a member of the program. In some market segments—such as business-to-
business—companies already possess significant knowledge about their customers. As
a result, these firms will not see customer knowledge as an important component of a
loyalty program’s value.

However, for most business-to-consumer companies, gaining this level of

intimate customer knowledge is a critical benefit of a loyalty program. In such B2C
industries, loyalty programs enable companies to match their faceless customer
15
purchase data (what was bought, when, at what store) with specific customer profile
information, which can then be used to create targeted marketing promotions or
redesign services around high-value customers’ needs.

The loyalty program helps to get a good relationship with customers because
without responding or not providing any special benefit the may don’t think to come
again for purchase to the particular store so Customer Relationship Management
makes it very useful

CRM is not just a technology, but rather a comprehensive customer-centric

approach to an organization’s philosophy in dealing with its customers. This includes
policies and process, front-of-house customer service, employee training, marketing
systems and information management. Hence it is important that any CRM
implementation considerations stretch beyond technology, towards the broader
organizational requirements.

Managing the customer experience, maintaining a more reliable data base, improving
service operations. Fostering customer loyalty, embracing the characteristics of high
performance marketing and other related subjects. The loyalty program gives a good
benefit’s to apparel retailers to do more and more service to customer

INCREASED CUSTOMER RETENTION

A well-honed loyalty program improves customer retention rates, by increasing a

member’s “switching costs,” which are costs a member would bear in order to
switch to a competing provider.

These costs can include decreased service and the time and resources required to
build a new relationship. The higher a member’s switching costs, the more likely that
member is to remain loyal.

16
 Most loyalty programs today do not create high enough switching costs for
members. For example, airline industry frequent-flier programs all provide virtually
the same product (a seat, perhaps with a few extra inches of legroom) and the same
membership benefits (separate customer service number, priority boarding, priority
upgrades, and bonus miles).

If gold-tier members on one airline want to switch to a competitor because the

competitor just added nonstop service on their favorite routes, all they have to do is fax
the competitor their last frequent-flier statement, and they will immediately be made
gold members of the competitor’s frequent-flier program. Because the products and
services these two airlines and their loyalty programs provide are virtually identical,
the members can switch to a competing carrier at virtually no cost to themselves.

However, if the first loyalty program offered a unique set of benefits that the
competing carrier could not easily duplicate, it would be much less tempting for
members to switch. Companies use their loyalty programs to create these switching
costs, by

• Leveraging in-depth member profile and transaction data to create unique offers
and product/services that a competitor, which does not know as much about the
member, cannot match

• Providing targeted service consistently across all channels

By using the personalized data provided by their loyalty program, companies can
create a win-win relationship with their members that cannot easily be replicated by
their competitors.

Businesses are quickly learning that being the best is no longer enough.
Every consumer demands the highest quality goods or services at the best prices,
conveniently delivered to them through whatever means and at any time they choose.
So the retailers have to do everything to meet those demands. At the same time, invest
time and resources to hire and train the staff to be courteous, friendly, helpful and
trustworthy when facing customers.

17
 Today's customers have more choice, are better informed and are more
demanding of value and return for their spending money. They look not only for the
products and services that meet their needs at the price they are willing to pay, but for
the merchant that recognizes, appreciates and rewards their patronage.

Given this wide acceptance and popularity of reward & recognition-based

loyalty programs, merchants have leveraged, and continue to employ, programs to
compliment their traditional efforts in responding to a variety of challenges.

Now a day’s all big apparel retailers have started the loyalty program with
different benefits in order to satisfy customer needs and wants

ATTRACTING, RETAINING AND GROWING CUSTOMERS

A) Customers are becoming harder to please.

B) Companies seeking to expand profits and sales have to spend considerable time and
resources searching for new customers.

 Suspects are people or organizations that might conceivably have an interest in

buying but many not have the means or real intention to buy.

 Prospects—customers with the motivation, ability, and opportunity to make a

purchase

 Customer churn—high customer defection

Two main ways to strengthen customer retention:

 Erect high switching costs.

 Deliver high customer satisfaction.

C) Most companies now recognize the importance of satisfying and retaining

customers.

D) Satisfied customers constitute the company’s customer relationship capital.

Acquiring new customers cost five times more than the costs involved in
satisfying and retaining current customers.

18
 The average company loses 10 percent of its customers each year.

 A 5 percent reduction in customer defection rate can increase profits by 25 percent to

85 percent depending on the industry.

 Customer profit rate tends to increase over the life of the retained customer..

TOP PLAYERS IN APPAREL RETAIL STORES ADOPETED LOYALTY

PROGRAM

Max Retail : Green Card (GC)

Shopper Stop : First Citizen (FC)

Lifestyle : The Inner Circle (TIC)

Westside : Club West

19
INDUSTRY
PROFILE

20
 INTRODUCTION TO RETAIL INDUSTRY

The word retail is, in fact, derived from the French word retailer, which
means – “to cut off a piece or to break bulk.”A retailer may be defined as a dealer or
trader who repeatedly sells goods in small quantities.

Retailing is the business where an organization directly sells its products and
services to an end consumer and this is for his personal use.
By definition whenever an organization be it a manufacturing or a whole seller
sells directly to the end consumer it is actually operating in the Retail space.
The growth in Indian Retail segment was mostly attributed to factors like
increasing disposable income, favorable demographics, changing lifestyle, growth of
the middle class segment, high potential for penetration into rural markets, and
progressive FDI norms
It is an Industry which is heavily dependent on consumer spending. In this
ecosystem consumers play the most important role.
Retail sales are generally driven by people’s ability (disposable income) and
willingness (consumer confidence) to buy goods and services.

"Retailing” is one of the oldest business activities in India. But until the
liberalization and deregulation of the Indian economy in the 1990s, it was dominated
by small one-man retail units.
However since the past five years, it has become more structured and formalized and is
moving towards international standards. Today, the organized retail sector is an
industry.

Retailing may include subordinated services, such as delivery. Purchasers may

be individuals or businesses. In commerce, a "retailer" buys goods or products in large
quantities from manufacturers or importers, either directly or through a wholesaler, and
then sells smaller quantities to the end-user. Retail establishments are often called
shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers
see the process of retailing as a necessary part of their overall distribution strategy. The
term "retailer" is also applied where a service provider services the needs of a large
number of individuals, such as a public utility, like electric power.
21
 Shops may be on residential streets, shopping streets with few or no houses or
in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a
shopping street has a partial or full roof to protect customers from precipitation. Online
retailing, a type of electronic commerce used for business-to-consumer (B2C)
transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is

done to obtain necessities such as food and clothing; sometimes it is done as a
recreational activity. Recreational shopping often involves window shopping (just
looking, not buying) and browsing and does not always result in a purchase.

ISSUES IN RETAILING:
 How can we best serve our customers while earning a fair profit?

 How can we stand out in a highly competitive environment where consumers

have too many choices?

 How can we grow our business, while retaining a core of loyal customers?

Retailers can best address these questions by fully understanding and applying
the basic principles of retailing, as well as the elements in a well-structured,
systematic, and focused retail strategy

EVOLUTION OF INDIAN RETAIL:

Informal retailing Sector

 Typically large retailers

 Greater enforcement of taxation mechanisms

 High level of labor usage monitoring

Formal Retailing Sector

 Typically small retailers.

 Evasion of taxes
22
  Difficulty in enforcing tax collection mechanisms

 No monitoring of labor laws.

TYPICAL CHANNEL OF DISTRIBUTION

MANUFACTURE RETAILER

WHOLESELLER FINAL CONSUMER

A retailer sells to consumers through multiple retail formats
 Web sites

 Physical stores

Cont....

Retail consumer markets today include high rates of personal expenditures,

low interest rates, low unemployment and very low inflation. Negative factors that
impact retail sales involve weakening consumer confidence.

One of India’s major retailers with presence in following two segments:

Lifestyle Retailing : Max Retail, Central, Fashion Station, aLL, MeLa.
Value Retailing :Big Bazaar, Food Bazaar.

Retailing is the world’s largest private industry:

Retail is the world’s largest private industry with global retail sales of roughly
USD 8 trillion. Retailing is also one of the biggest contributors to the Gross Domestic
Product (GDP) of most countries and also one of the biggest employers. (Source CII
McKinsey Report titled “Retailing in India, the Emerging Revolution”)

In India, however, the retail sector has seen a high level of fragmentation with
a large share held by unorganized players.

23
BOOMING OF APPAREL RETAIL INDUSTRY

In india the retailers plays vital role in selling goods to the ultimate customer and
day by day number of retailers are increasing tremendously and ultimate end users are
being confused and customers keep on changing the retail store

The apparel retailers try to adopt change with new fashion and promotional
activities to ultimate customers now a day’s many franchise apparel retail store are
being increased and so that number of stores are increasing easily and retaining a
customer by apparel retailers are becoming very difficult and in order to retain
customers now top apparel retail giant like Max Retail, lifestyle, globus, shopper stop,
Westside and many more apparel retailers try to retain customer using various
customer program because relationship with customer is more important or else they
may move easily to other retail store.

24
 India has often been called a nation of shopkeepers. Presumably the reason for
this is; that, a large number of retail enterprises exist in India. In 2004, there
were 12 million such units of which 98% are small family businesses, utilizing
only household labour. Even among retail enterprises, which employ hired
workers, a majority of them use less than three workers.
 Retailing is the combination of activities involved in selling or renting consumer
goods and services directly to ultimate consumers for their personal or
household use. In addition to selling, retailing includes such diverse activities as,
buying, advertising, data processing and maintaining inventory.
 While sales people regularly call on institutional customers, to initiate and
conclude transactions, most end users or final customers, patronize stores. This
makes store location, product assortment, timings, store fixtures, sales
personnel, delivery and other factors, very critical in drawing customers to the
store.
 Final customers make many unplanned purchases. In contrast those who buy for
resale or use in manufacturing are more systematic in their purchasing.
Therefore, retailers need to place impulse items in high traffic locations,
organize, store layout , trains sales people in suggestion , and place related items
next to each other, to stimulate purchase.

 WHAT DOES THE RETAILING INDUSTRY INCLUDE?

 Department Stores
 Discount Stores
 Clothing Stores
 Specialty retailers
 Convenience Stores
 Grocery Stores
 Drug Stores
 Home furnishing retailers
 Auto Retailers
 Direct Sales Catalog and mail order companies
 Some e-commerce businesses

25
THE IMPORTANCE OF RETAILING :-
 Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003
and has grown at about 40% over the last 3 years (Source KSA Retail Outlook).
 Retailing has a tremendous impact on the economy. It involves high annual sales
and employment. As a major source of employment retailing offers a wide range
of career opportunities including; store management, merchandising and owning
a retail business.
 Consumers benefit from retailing in that, retailers perform marketing functions
that makes it possible for customers to have access to a broad variety of
products and services. Retailing also helps to create place, time and possession
utilities. A retailer's service also helps to enhance a product's image.
 Retailers participate in the sorting process by collecting an assortment of goods
and services from a wide variety of suppliers and offering them for sale. The
width and depth of assortment depend upon the individual retailer's strategy.
 They provide information to consumers through advertising, displays and signs
and sales personnel. Marketing research support is given to other channels,
members.
 They store merchandise, mark prices on it, place items on the selling floor and
otherwise handle products; usually they pay suppliers for items before selling
them to final customers. They complete transactions by using appropriate
,,

locations, and timings, credit policies, and other services e.g. delivery.
 Retailing in a way, is the final stage in marketing channels for consumer
products. Retailers provide the vital link between producers and ultimate
consumers.

RETAIL STRATEGY AND STRUCTURE :-

 Successful retail operations depend largely on two main dimensions: margin and
turnover. How far a retail enterprise can reach in margin and turnover depends
essentially on the type of business (product lines) and the style and scale of the
operations. In addition the turnover also depends upon the professional
competence of the enterprise.

26
 In a given business two retail companies may choose two different margin
levels, and yet both may be successful, provided the strategy and style of
management are appropriate.

MARGIN TURNOVER MODEL

 Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover,
for understanding the retail structure and evolving a retail strategy."
 Margin is defined as the percentage mark tip at which the inventory in the store
is sold and turnover is the number of times the average inventory is sold in a
year. This is a diagrammatic representation of the frame work and can be
applied to almost any type of retail business.
 Depending upon the, combination of the two parameters, a retail business will
fall into one of the four quadrants. For instance L-L signifies a position which is
low on both margin and turnover; whereas, H-L indicates high margin and low
turnover.

LOW MARGIN HIGH TURNOVER STORES

 Such an operation assumes that low price is the most significant determinant of
customer patronage. The stores in this category price their products below the
market level. Marketing communication focuses mainly on price. They provide
very few services; if any, and they normally entail an extra charge whenever
they do. The merchandise in these stores are generally pre-sold or self sold. This
means that the customers buy the product, rather than the store selling them.
 These stores are typically located in isolated locations and usually stock a wide .
range of fast moving goods in several merchandise lines. The inventory consists
of well known brands for which a consumer pull is created by the manufacturer
through national advertising. Local promotion focuses on low price. Wal-mart in

27
 the United States is an example and Pantaloon Chain or Subhiksha are Indian
examples of such stores.

HIGH MARGIN LOW TURNOVER

 This operation is based on the premise that distinctive merchandise, service and
sales approach are the most important factors for attracting customers. Stores in
this category price their products higher than those in the market, but not
necessarily higher than those in similar outlets. The focus in marketing
communication is on product quality and uniqueness.

 Merchandise is primarily sold in store and not pre-sold. These stores provide a
large number of services and sell select, categories of products. They do not
stock national brands which are nationally advertised. Typically, a store in this
category is located in a down town area or a major shopping center. Sales
depend largely on salesmanship and image of the outlet.

HIGH MARGIN HIGH TURNOVER STORES

 These stores generally stock a narrow line of products with turnover of
reasonably high frequency. They could be situated in a non commercial area but
not too far from a major thoroughfare. Their location advantage allows them to
charge a higher price. High over head costs and, low volumes also necessitate a
higher price.

LOW MARGIN-LOW TURNOVER STORES

 Retail enterprises in this category are pushed to maintain low margins because
of price wars. Compounding this problem is the low volume of sales, which is
probably a result of poor management, unsuitable location etc. such businesses,
normally get wiped out over a period of time.

28
 RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)
 Regardless of the particular type of retailer (such as a supermarket or a
department store), retailers can be categorized by (a) Ownership, (b) Store
strategy mix, and (c) Non store operations. Figure 1.3 illustrates this concept.
 Form of Ownership
 A retail business like any other type of business, can be owned by a sole
proprietor, partners or a corporation. A majority of retail business in India are
sole proprietorships and partnerships.
 Independent Retailer
 Generally operates one outlet and offers personalized service, a convenient
location and close customer contact. Roughly 98% of all the retail businesses in
India, are managed and run by independents, including barber shops,
drycleaners, furniture stores, bookshops, LPG Gas Agencies and neighborhood
stores. This is due to the fact that into retailing is easy and it requires low
investment and little technical knowledge. This obviously results in a high
degree of competition..

 Most independent retailers fail because of the ease of entry, poor management
skills and inadequate resources.

Retail Chain

 It involves common ownership of multiple units. In such units, the purchasing

and decision making are centralized. Chains often rely on, specialization,
standardization and elaborate control- systems. Consequently chains are able to
serve a large dispersed target market and maintain a well known company name.
Chain stores have been successful, mainly because they have the opportunity to
take advantage of "economies of scale" in buying and selling goods. They can
maintain their prices, thus increasing their margins, or they can cut prices and
attract greater sales volume. Unlike smaller, independent retailers with lesser
financial means, they can also take advantage of such tools as computers and
information technology. Examples of retail chains in India are Shoppers stop;
West side and IOC, convenience stores at select petrol filling stations.

29
 Retail Franchising

 Is a contractual arrangement between a "franchiser" (which may be a

manufacturer, wholesaler, or a service sponsor) and a "franchisee" or
 Franchisees, which allows the latter to conduct a certain form of business under
an established name and according to a specific set of rules. The franchise
agreement gives the franchiser much discretion in controlling the operations of
small retailers. In exchange for fees, royalties and a share of the profits, the
franchiser offers assistance and very often supplies as well. Classic examples of
franchising are; McDonalds, Pizza Hut and Nirulas.

Cooperatives

 A retail cooperative is a group of independent retailers that have combined their

financial resources and their expertise in order to effectively control their
wholesaling needs. They share purchases, storage, shopping facilities,
advertising planning and other functions. The individual retailers retain their
independence, but agree on broad common policies. Amul is a typical example
of a cooperative in India.

Store Strategy Mix

 Retailers can be classified by retail store strategy mix, which is an integrated

combination of hours, location, assortment, service, advertising, and prices etc.
The various categories are:
 (A)Convenience Store: Is generally a well situated, food oriented store with
long operating house and a limited number of items. Consumers use a
convenience store; for fill in items such as bread, milk, eggs, chocolates and
candy etc.
 (B)Super markets: Is a diversified store which sells a broad range of food and
non food items. A supermarket typically carries small house hold appliances,
some apparel items, bakery, film developing, jams, pickles, books, audio/video

30
 CD's etc. The Govt. run Super bazaar, and Kendriya Bhandar in Delhi are good
examples of a super market. Similarly in Mumbai, we have Apna Bazar and
Sahakari Bhandar.
 (C)Department Stores: A department store usually sells a general line of
apparel for the family, household linens, home furnishings and appliances.
Large format apparel department stores include Pantaloon, Ebony and Pyramid.
Others in this category are: Shoppers Stop and Westside.
 (D)Speciality Store: Concentrates on the sale of a single line of products or
services, such as Audio equipment, Jewellery, Beauty and Health Care, etc.
Consumers are not confronted with racks of unrelated merchandise. Successful
speciality stores in India include, Music World for audio needs, Tanishq for
jewellery and McDonalds, Pizza Hut and Nirula's for food services.
 (E)Hyper Markets: Is a special kind of combination store which integrates an
economy super market with a discount department store. A hyper market
generally has an ambience which attracts the family as whole. Pantaloon Retail
India Ltd. (PRIL) through its hypermarket "Big Bazar", offers products at prices
which are 25% - 30% lower than the market price.

Non Store Retailing

 In non store retailing, customers do not go to a store to buy. This type of

retailing is growing very fast. Among the reasons are; the ability to buy
merchandise not available in local stores, the increasing number of women
workers, and the presence of unskilled retail sales persons who cannot provide
information to help shoppers make buying decisions
 The major types of non store retailing are:
 (A)In Home Retailing: Where, a sales transaction takes place in a home setting
- including door-door selling. It gives the sales person an opportunity to
demonstrate products in a very personal manner. He/She has the prospect's
attention and there are fewer distractions as compared to a store setting.
Examples of in home retailing include, Eureka Forbes vaccum cleaners and
water filters.

31
 (B)Telesales/Telephone Retailing: This involves contact between the prospect
and the retailer over the phone, for the purpose of making a sale or purchase. A
large number of mobile phone service providers use this method. Other
examples are private insurance companies, and credit companies etc.
 (C)Catalog Retailing: This is a type of non store retailing in which the retailers
offers the merchandise in a catalogue, which includes ordering instructions and
customer orders by mail. The basic attraction for shoppers is convenience. The
advantages to the retailers include lover operating costs, lower rents, smaller
sales staff and absence of shop lifting. This trend is catching up fast in India.
Burlington's catalogue shopping was quite popular in recent times. Some multi
level marketing companies like Oriflame also resort to catalogue retailing.
 (D)Direct Response Retailing: Here the marketers advertise these products/
services in magazines, newspapers, radio and/or television offering an address
or telephone number so that consumers can write or call to place an order. It is
also sometimes referred to as "Direct response advertising." The availability of
credit cards and toll free numbers stimulate direct response by telephone. The
goal is to induce the customer to make an immediate and direct response to the
advertisement to "order now." Telebrands is a classic example of direct response
retailing. Times shopping India is another example.
 (E)Automatic Vending: Although in a very nascent stage in India, is the
ultimate in non personal, non store retailing. Products are sold directly to
customers/buyers from machines. These machines dispense products which
enable customers to buy after closing hours. ATM's dispensing cash at odd
hours represent this form of non store retailing. Apart from all the multinational
banks, a large number of Indian banks also provide ATM services, countrywide.
 (F)Electronic Retailing/E-Tailing: Is a retail format in which retailers
communicate with customers and offer products and services for sale, over the
internet. The rapid diffusion of
internet access and usage, and the perceived low cost of entry has stimulated the
creation of thousands of entrepreneurial electronic retailing ventures during the
last 10 years or so. Amazon.com, E-bay and Bazee.com HDFCSec.com are
some of the many e-tailers operating.

32
 THE WHEEL OF RETAILING
 Is a hypothesis that attempts to explain the emergence of new retailing
institutions and their eventual decline and replacement by newer retailing
institutions? Like products retailing institutions also have a life cycle.
 According to this theory new retailers enter the market as, low margin, low
price, low status institutions. The cycle begins with retailers attracting customers
by offering low price and low service. Over a period of time these retailers want
to expand their markets and begin to stock more merchandise, provide more
services, and open more convenient locations. This trading up process. Increases
the retailers’ costs and prices, creating opportunities for new low price retailers
to enter the market.
 The evolution of the department store illustrates the "wheel of retailing" theory.
In its entry phase, the department store was a low cost-low service venture. With
time it moved up into the trading-up phase. It upgraded its facilities, stock
selection, advertising and service. The same department store then moves into
the vulnerability phase, because it becomes vulnerable to low cost/low service
formats, such as full line discount stores and category specialists. Figure 1.5
illustrates this theory. While the wheel hypothesis has a great deal of intuitive
appeal and has been borne out in general by many studies of retail development,
it only reflects a pattern. It is not a sure indicator of every change, nor was it
ever intended to describe the development of every individual retailer.

RETAILING DECISIONS
 There are many factors for retailers to consider while developing and
implementing their marketing plans. Among the major retailing decisions are
these related to (a) Target markets (b) Merchandise management (c) Store
location (d) Store image (e) Store personnel (f) Store design (g) Promotion, and
(h) Credit and collections.

Target Markets: Although retailers normally aim at the mass market, a growing
number are engaging in marketing research and market segmentation, because they are
finding it increasingly difficult to satisfy everyone. Through a careful definition of
target markets, retailers can use their resources and capabilities to position themselves

33
more effectively and achieve differential advantage. The tremendous growth in number
of speciality stores in recent years is largely due to their ability to define precisely the
type of customers, they want to serve.
 Merchandise Management: The objective here is to identify the merchandise
that customers want, and make it available at the right price, in the right place at
the right time. Merchandise Management includes (i) merchandise planning (ii)
merchandise purchase, and (iii) merchandise control. Merchandise planning
deals with decisions relating to the breadth and depth of the mix, needed to
satisfy target customers to achieve the retailers return on investment. This
involves sales forecasting, inventory requirements, decisions regarding gross
margins and mark ups etc. Merchandise buying involves decisions relating to
centralized or decentralized buying, merchandise resources and negotiation with
suppliers. Merchandise Control: deals with maintaining the proper level of
inventory and protecting it against shrinkage (theft, pilferage etc.).
 Store Location: Location is critical to the success of a retail store. A store's
trading-area is the area surrounding the store from which the outlet draws a
majority of its customers. The extent of this area depends upon the merchandise
sold. For example some people might be willing to travel a longer distance to
shop at a speciality store because of the unique and prestigious merchandise
offered. Having decided on the trading area a specific site must then be selected.
Factors affecting the site include, traffic patterns, accessibility, competitors'
location, availability and cost and population shifts within the area.
 Store Image: A store image is the mental picture, or personality of the store, a
retailer likes to project to customers. Image is affected by advertising, services;
store layout, personnel, as well as the quality, depth and breadth of merchandise.
Customers tend to shop in stores that fit their images of themselves.
 Store Personnel: Sales personnel at a retail store can help build customer
loyalty and store image. A major complaint in many lanes of retailing, is the
poor attitude of a salesperson. There is a growing trend now, to provide training
to, these sales clerks to convert them from order takers to effective sales
associates.
 Store Design: A store's exterior and interior design affect its image and profit
potential. The exterior should be attractive and inviting and should blend with

34
 the store's general surroundings. The term "Atmospherics" is used to refer to the
retailer's effort at creating the right ambience. Merchandise display is equally
important. An effective layout guides the customer though the various sections
in the store and facilitates purchase.
 Promotion: retail promotion includes all communication from retailers to
consumers and between sales people and customers. The objective is to build the
stores image, promote customer traffic, and sell specific products. It includes
both, personal and non personal promotion. Personal communication is personal
selling - the face to face interaction between the buyer and the seller.
Department stores and speciality stores, emphasize this form of promotion. Non
personal promotion is advertising. The media used are TV, Radio, Newspapers,
Outdoor displays and direct mail, other forms of promotion include, displays,
special sales, give always and contests etc.
 Credits & Collections: Retailers are generally wary of providing credit,
because of additional costs-financing accounts receivables, processing forms
and bad debts etc. But many customers prefer some form of credit while
purchasing. This explains the popularity of different types of credit cards and
debit cards.

EMERGING TRENDS IN RETAILING

 In recent years the nature of retailing has changed dramatically, as firms try to
protect their positions in the market place. Many customers are no longer willing
to spend as much time on shopping as they once did. Some sectors of retailing
have become saturated, several retailers are operating under high levels of debt
and number of retailers after running frequent "sales", have found it difficult to
maintain regular prices.
 Retailers are adapting to*the shopping needs and time constraints of working
women, dual earner households and the increased customer interest in quality
and customer service:
 Shopping Malls: A growing number of shopping malls are coming up all over
the country. In north India; there seems to be a proliferation of such malls
surrounding Delhi, in places like Gurgaon and Noida. In general they target

35
 higher income customers, with their prestigious specialty shops, restaurants and
department stores.
 Factory Outlets: Manufacturers are opening factory outlets to sell off surplus
inventories and outdated merchandise. This forward vertical integration gives
manufacturers greater control' over distribution, than selling the merchandise to
off price retailers. Mohini knitwear of Ludhiana (Punjab) and number of woolen
and hosiery manufacturers set up their outlets in Delhi during winters.
 Non Store Retailing: Non store retailing is accelerating at a faster rate than in
store retailing. This includes direct marketing. In Home shopping TV shopping
and e-tailing etc.
 Diversification of Offerings: Scrambled (unrelated products or services)
merchandising is taking on a broader meaning and inter type competition among
retailers is growing. For instance Citibank is organizing tourist trips and sending
mail order catalogues to its credit card customers.
 Impact of Technology on Shopping Behaviors: The way retailers present their
merchandise and conduct their transactions are changing. Cable TV Channels
are used to present merchandise, Videos have replaced catalogues and computer
linkages to acquire information and make purchases are on the increase. Virtual
shopping through PDA's is another possibility.

Multi Channel Retailing: Traditional store based and catalogue retailers are placing
more emphasis on their electronic channels and evolving into multi channel retailers,
because they can reach new markets and overcome limitations posed by traditional
formats.

36
Today’s Retail in India

Comprised of organized and traditional retail formats, Indian Retail market is

estimated to be worth US$ 511 billion, and is poised to grow to US$ 833 billion by
2013. The organised retail that currently accounts for less than 5 per cent of the total
retail market is expected to register a compound annual growth rate (CAGR) of 40 per
cent and swell to US$ 107 billion by 2013.

A report by global consultancy firm, AT Kearney said "The consumer spending in

India has increased by an impressive 75 per cent in the last four years and will
quadruple in the next 20 years." Moreover, India recently topped the Nielsen Global
Consumer Confidence study, conducted by Nielsen, a market research company. The
biannual report revealed that Indians are "the most optimistic lot globally who think
that their country will be out of the economic recession in the next twelve months."

However the size of Organised Retail in India will exceed US$22bn mark from current
level of about US$4bn with its space requirement touching over 220mn sq. ft., by
2010, according to The Associated Chambers of Commerce and Industry of India
(ASSOCHAM). In a Paper brought out by ASSOCHAM on `Retail Scenario in India
and Its Related Issues’, it has been stated that approx. 40mn sq. ft. is currently
generating a business of about US$4bn in organized retail.

India’s vast middle-class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets and India provides for the ideal
locations. Since, Delhi and its suburbs have so far seen the growth of 100 bigger and
smaller malls, roughly 600 new malls are coming up in other metropolis and large
townships in which less than 35% of retail business is going to be transacted.

It is seen that over 1000 malls are in the pipelines for smaller townships in which the
retail sector is projected to grow at over 60% because of ample availability of land and

37
increased purchasing power of the folks living in those areas because of increased
economic activities. Naturally, the large players will prefer to go there and put up their
shops by sourcing their supplies from the places convenient to them.

Some of the key areas in which retail boom will prevail in towns beyond metros and
even large cities will include food items, FMCG products, grocery, sportswear,
outerwear, tailored clothing, eyewear, watches, footwear and accessories and the like.
The retail business that will pre-dominantly stay with malls put up in metros and large
cities will include apparel, pharmaceuticals, luxury goods and consumer durables.

Changes should be brought about in Agricultural Produce Marketing Committee

(APMC) Act (a key contributor to the large number of intermediaries) such as the
introduction of contract farming and allowing direct procurement from farmers by
retail owners so that a direct chain is established between the user and farmers for their
equal benefits. It also highlights, pointing out that even in the case of non-agricultural
products such as apparel, FMCG and general merchandise, the situation is far from
ideal.

The key cause for inefficiency is the poor integration between the retailer and supplier.
None of the retailers, in view of ASSOCHAM has so far an automated system for
information exchange with their suppliers. In developed countries, retailers practice
Vendor Management Inventory (VMI) systems, where the supplier has access to the
point of sales data of the retailer and plans automatic replenishments responding to the
stocks available at the retailer.

38
Key Points of Indian Organised Retail Industry

1. Potential to be the third largest economy in terms of GDP in next few years .
2. It ranks high amongst the top 10 FDI destinations of the world .
3. Fastest growing tourist market in Asia.
4. World bank states, India to be worlds second largest economy after China by
the year 2050.
5. Stable and investor friendly Central Government at the helm of affairs.
6. Introduction of Value Added Tax or VAT and tax reforms.
7. High degree of professionalism and corporate ethics.
8. Excellent Investment opportunities in Indian retail sector and in allied sectors;
sure and high returns on investments.
9. To invest US $130 billion for the development of infrastructure, by year 2010.
10. Bullish stock markets.
11. Hordes of foreign investors are thronging in to invest in Indian retail markets.
12. Highly educated English speaking young workforce.
13. Vibrant and multi cultured cities.
14. Huge opportunity exists, especially in semi-rural and rural areas.
15. Till date the second largest employer after agriculture sector, for the huge semi-
skilled Indian population.
16. Offers highest shop density in the whole world.
17. Having almost 1,20,000 shops, across the length and breadth of the country.

Formats in Indian Organized Retail Sector

1. Supermarkets: A supermarket, also called a grocery store is a self-service store
offering a wide variety of food and household merchandise, organized into
departments. It is larger in size and has a wider selection than a traditional grocery
store and it is smaller than a hypermarket or superstore.

2. Hypermarkets: A hypermarket is a superstore which combines a supermarket and a

department store. The result is a very large retail facility which carries an enormous

39
range of products under one roof, including full lines of groceries and general
merchandise. In theory, hypermarkets allow customers to satisfy all their routine
weekly shopping needs in one trip.

3. Department Stores: A department store is a retail establishment which specializes

in satisfying a wide range of the consumer's personal and residential durable goods
product needs; and at the same time offering the consumer a choice multiple
merchandise lines, at variable price points, in all product categories. Department stores
usually sell products including apparel, furniture, appliances, electronics, and
additionally select other lines of products such as paint, hardware, toiletries, cosmetics,
photographic equipment, jewelery, toys, and sporting goods. Certain department stores
are further classified as discount department stores. Discount department stores
commonly have central customer checkout areas, generally in the front area of the
store. Department stores are usually part of a retail chain of many stores situated
around a country or several countries.

4. Shopping malls: A shopping mall or shopping centre is a building or set of

buildings which contain retail units, with interconnecting walkways enabling visitors
to easily walk from unit to unit.

5. Specialty Chains: A Specialty Chains is numbers stores which are specialized in a

specific range of merchandise and related items. Most stores have an extensive width
and depth of stock in the item that they specify in and provide high levels of service
and expertise. They differ from department stores and supermarkets which carry a
wide range of merchandise.

40
 TOP MAJOR RETAIL PLAYERS

Total Retail
No.of
Retailer Existing formats Brand Names Space
Stores
(‘000 sq ft)

Department store Pantaloon 13 1,948

Pantaloon Retail
Hypermarket Big Bazaar 450 5000
Indian Ltd
Seamless Malls Central 12 1200

Hyper markets Spencer’s 400 6000

RPG Retail Music Stores Music world 225 230

books Stores Books and Beyonds

Department stores Shopper’s Stop 20 1000

Shopper’s Stop
Books & Music Stores Crosswords 33 N/A
Ltd.
Home furnishing Home Stop N/A N/A

Landmark Group
Department Stores Lifestyle 8 370
(Based in Dubai)

Department Stores West side 19 350

Trent India Ltd Hypermarkets Star India Bazaar 1 N/A

Books & Music Stores Land Mark 4 N/A

Vishal Group Hyper markets Vishal Mega Mart 183 13,45

 

41
Indian Retail Industry: Strategies, Trends and Opportunities
2011-2012
Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP
and around eight per cent of the employment. Retail industry in India is at the
crossroads. It has emerged as one of the most dynamic and fast paced industries with
several players entering the market. But because of the heavy initial investments
required, break even is difficult to achieve and many of these players have not tasted
success so far. However, the future is promising; the market is growing, government
policies are becoming more favorable and emerging technologies are facilitating
operations.
Retailing in India is gradually inching its way toward becoming the next boom
industry. The whole concept of shopping has altered in terms of format and consumer
buying behavior, ushering in a revolution in shopping in India. Modern retail has
entered India as seen in sprawling shopping centers, multi-storeyed malls and huge
complexes offer shopping, entertainment and food all under one roof. The Indian
retailing sector is at an inflexion point where the growth of organized retailing and
growth in the consumption by the Indian population is going to take a higher growth
trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years, nuclear
families in urban areas, along with increasing workingwomen population and emerging
opportunities in the services sector are going to be the key growth drivers of the
organized retail sector in India.
1.1 Some Key Facts
- Retail is India’s largest industry, accounting for over 10 per cent of the
country’s GDP and around eight per cent of the employment.
- The market size of Indian retail industry is about US $312 billion
- Organized retailing comprises only 4.5 per cent of the total retailing market and
is estimated at around US$ 8.7 billion
- The organized retail sector is expected to grow to US $ 70 billion by 2010

42
1.2 International retailers

India's vast middle class with its expanding purchasing power and its almost untapped
retail industry are key attractions for global retail giants wanting to enter newer
markets.

 The Australian government's National Food Industry Strategy and Astride

initiated a test marketing food retail in India wherein 12 major Australian food
producers have tied up with India-based distributor AB Mauri to sell their
products directly at retail outlets.
 US-based home delivery and logistics company, Specialized Transportation
Inc, will enter the Indian market through a strategic alliance with Patel Retail, a
subsidiary of Patel Integrated Logistics.
 Wal-Mart has announced its plans for India in partnership with Bharti,
 US coffee chain Starbucks’ is well on its way to set up its first store in India
this year.
 US based Tommy Hilfiger has tied up with Creative Portico, a Mumbai based
home textiles company, to sell its home textiles and furnishings in India.
 Alfred Dunhill, a UK-based luxury men’s brand, has tied up with Brand house
Retail Ltd. for its India venture and will be opening four stores in the country.
 The world’s largest furniture retailer, Ikea, has established an office in Gurgaon
for market research and is holding talks with domestic companies to open
stores in India.

Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony,
Sharp, Kodak, and Medicine Shoppe among others.

1.3 Retail Omnibus: Four Reports on the Retail Scene in India

The Omnibus edition of Pantaloon retail papers spans this very happening sector,
which not only brings so much joy to the inveterate shoppers in terms of retail therapy,
but also employment and livelihood to tens of thousands of Indians.

43
India’s GDP growth rate is a healthy 9% for 2005-06 – and this has had its ripple effect
on all industries – more so the Retail sector, of which only 3% organized until now.

 The Indian retail industry accounts for 10% of GDP and 8% of employment.
 India is being touted as the next big retail destination with an average three year
compounded annual growth rate of 46.64%.
 The Indian economy is poised to take the third position in the world in terms of
Purchasing Power Parity by the year 2010.
 The Indian Retail Market is a Rs. 1,200,000 million market as per the Images
India Retail Report 2007.
 Organized Retail market is zooming ahead with an annual growth rate of 30%.

The Retail sector is vibrant with growth happening in all related areas – be they malls,
hypermarkets or single brand luxury stores, they have dotted the commercial landscape
of the metros, and have even percolated to the Tier II and Tier III cities.

Malls are fast becoming sought-after entertainment hotspots. From a situation where
there were no malls about a decade ago, the country will have over 300 malls
translating to over 100 million sq.ft. in available mall space by the end of 2007.

Food and Grocery retail holds the most potential, as almost 99% of it is unorganized.
A number of big players are entering the field of organized food retail like Reliance,
Aditya Birla Group and the Bharti Group, which has tied up with the world’s largest
retailer – Wal-Mart. All these major players are expected to show an annual growth
rate of 25 – 30%.

The Retail boom has also led to the opening of a large number of single brand outlets
across the country. With big brands and bigger outlets across all segments, from
Apparel and Footwear, Watches, Books and Stationary to Jewelry and Consumer
Durables, the sweep is indeed broad.

44
The Retail Sector is definitely witnessing a growth phase and everyone wants to make
their presence felt in order to take their share of this huge pie. Take a gourmet trip –
dig in to sample the depth and breadth of this amazing sector.

Types of Retail verticals operating in India

 Food and Beverage
 Health and Beauty
 Clothing and Footwear
 Home Furniture and Household Goods
 Consumer Durable Goods
 Leisure and Personal Goods

45
COMPANY
PROFILE

46
 Landmark Group

The Landmark G roup, founded in 1973 w ith a s ingle s tore in Bahrain

has grow n into one of the larges t retail conglomerates in the M iddle

Eas t and is expanding rapidly in India. It currently operates over 750

s tores acros s the region w ith a retail pres ence in China as w ell. In

addition to its retail s ector, the Group has als o divers ified into

leis ure, food, hotels and electronics and has created a comprehens ive

infras tructure including its ow n logis tics and dis tribution divis ion, to

s upport its retail operations and other bus ines s es .

Key Facts

38 Years of retail experience.

Turnover in excess of US $ 5 bn.

Total retail space over 10 million sq ft.

Retail Presence across 12 countries: Bahrain, China, India, Jordan, Kingdom of

Saudi Arabia, Kuwait, Oman, Qatar, Spain, UAE, Pakistan & Egypt.

47
Operates over 825 stores.

Employs 24,000 personnel.

Core Values of Landmark Group

Pas s ion for excellen c e – We are commit ted to s etting indus try
1.  

benchmarks – be it our product or practices . O ur doctrine is to s trive

and maintain the lead in whatever w e do, w ith s trict adherence to

quality and delivering value for money.

2.   I n tegrity in everyth in g w e d o - O ur bus ines s is driven by trus t,

s trong ethics and mutual res pect.

3.   Emp ow erin g p eop le to s trive an d d eliver – O ur core s trength is

our employees . We believe in giving our pers onnel the opportunity

48
 and res pons ibility that are integral to their profes s ional developmen t

and our Group’s s ucces s .

4. A d ap tin g to ch an gin g mark et an d cus tomer n eed s – We keep

ours elves abreas t w ith indus try trends and dynamic cons umer

preferences . O ur offerings keep evolving to addres s changing and

dis cerning cons umer needs .

Look Good Feel Good

 M ax a value retail s tore for the family w as launched in M ay

2004 in the U A E.

49
 With s tores that typically meas ure betw een 25,000 to 30,000 s q.

ft, M ax retails its ow n label clothing for men, women and children as

w ell as footw ear and home w are.

 A pioneer in the M iddle Eas t of the global trend of delivering

quality and value at very attrac tive prices , M ax is being increas ingly

recognized as a key player in the value retail format.

 With 75 s tores acros s UA E, S audi A rabia, J ordan, K uw ait,

B ahrain, Q atar, O man & India, M ax plans to expand its netw ork in

more potentia l markets w ithin the M iddle Eas t, Turkey and India to

build a s ignificant pres ence for the brand by targeting to have 200

s tores by 2012.

 A good s hopping experienc e and great value is an as s urance

that trans lates into making cus tomers “Look good. F eel good” w ith

M ax.

Key Facts

Established in 25 April 2006.

200 stores spread across 20 countries.

50
The Largest Value Fashion Chain in the Middle East

Products designed and developed exclusively for Max, by a large team of

in-house designers and buyers.

About Max in Indore :-

Address : - 1st Floor, Treasure Island Mall,

South Tukoganj, M.G. Road,
Indore

Established on :- 25 April 2006

Floor Space :- 17,400 square fit

Departments in Max :-

Departments Space (in Sq.ft.)

Western Wear 3700
Mens Wear 2800
Kids Wear 2700
Ethnic Wear 2400
Foot Wear 1500
Accessories 1000

Management Team at Max :-

51
 Name Designation
Mr. Abrahim Bootwala Area Manager
(MP & CG)
Mr. Sourabh Sharma Store Manager

Mr. Vikram Fouzdar Assistant Store Manager

Mr. Yogesh Karnavat Marketing - Assistant

Mr. Prashant Tiwari
Mr. Gourav Sisodia
Mr. Manmit Sharma
Mr. Jawed Khan
Mr. Mohammed Shakeel
Mr. Manoj Thakur
(Accessories & Foot Wear)
Manager
Department Manager
(Western Wear)
Department Manager
(Mens Wear)
Department Manager
( Concessionaire)
Department Manager
(Kids Wear)
Department Manager
(Ethnic Wear)
Department Manager

52
 Annual Sales of Max at Indore :-

Average Monthly Turnover :- 1,14,50,000

Average Annual Turnover :- 13,74,00,000

Departments Average Average

Monthly Yearly
Western Wear 25 Lacs 3 Crore
Mens Wear 30 Lacs 3.6 Crore
Kids Wear 20 Lacs 2.4 Crore
Ethnic Wear 12 Lacs 1.44 Crore
Foot Wear 5 Lacs 60 Lacs
Accessories 2.5 Lacs 30 Lacs
Concessionaire 20 Lacs 2.4 Crore

KIDSWEAR DEPARTMENT

53
INFANTS SECTION: -

BOYS (SIZES) PREPACK GIRLS (SIZES) PREPACK

6-12 MONTHS 3 6-12 MONTHS 3

12-18 MONTHS 3 12-18 MONTHS 3

18-24 MONTHS 3 18-24 MONTHS 3

TOTAL 9 9

BOYS SECTION: -

SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK

SIZES SIZES

2-3 YEARS 3 8-9 YEARS 3

3-4 YEARS 3 9-10 YEARS 3

5-6 YEARS 3 11-12 YEARS 3

7-8 YEARS 3 13-14 YEARS 3

TOTAL 12 12

GIRLS SECTION: -

SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK

SIZES SIZES

2-3 YEARS 3 8-9 YEARS 3

3-4 YEARS 3 9-10 YEARS 3

5-6 YEARS 3 11-12 YEARS 3

7-8 YEARS 3 13-14 YEARS 3

TOTAL 12 12

INFANTS GIRLS

TUNIC
V-NECK
R- NECK

54
 COLLER
FRONT OPEN

SKIRT
CAPRI
SHIRT

2-8 BOYS

T-SHIRT
DENIM JEANS
TROUSERS
CARGO
PAINTS
¾ CAPRI
COTTON WOVEN
KNITTED
DENIM

2-8 GIRLS

TUNIC
SKIRTS
T-SHIRT
HALTER NECK
POT
SEGDE
HALF SLEAVES
CUT SLEAVES
SLEAVELESS
HOODED SKIRT
SPORTS CAPRI
LEGINGS
¾ LEGINGS
FULL LEGINGS
LONG TOPS
MINI SKIRTS
CALF LENGTH SKIRT
DENIM
JEANS
CAPRI

STYLES: - KNIT TOP, KNIT BOTTOM, WOVEN TOP, WOVEN BOTTOM,

SPEGDEE, HALTER NECK TOP, DRESS, TUNIC, DENIM, CAPRI, DONGRIE, 3

55
PIECE PACK (SPORTS, SLEAVELESS, HALF SLEAVES), 2 PIECE PACK (NIGT
WEAR, SKIRTS).

ETHNIC

FUSION

KURTI
ROUND NECK
V-NECK
HALTER NECK
MATKA NECK
CUT NECK
SQUARE NECK
CUT SLEAVES
STEPS KURTI
SKIRT
STRAIGHT SKIRTS
CRUSH SKIRTS
CRUSH ANKLE SKIRTS

FABRICS: - ACOBA, COTTON, GORGET, SHIFFON, LINEN, VISCOS.

SIZES PREPACK

XS 1
S 2
M 2
L 2

TRADITIONAL

KURTI
SHORT LENGTH KURTI
HE KURTA
LONG KURTA

DUPATTA
COTTON
SHIFFON

SALWAR
PATIALA

56
 NORMAL
CHOORIDAR

SIZES PREPACK
S 2
M 3
L 3
XL 2
XXL 1

ETHNIC WEAR BASICS: -

KURTA
SALWAR
CHOORIDAR
PATIALA
DUPATTA
PANTS
BASICS SLIPS

HOMES

TABLE MAT
TABLE RUNNER
TABLE COVER
DUBLE BED SHEET
SINGLE BED SHEET
DOUBLE BED COVER
SINGLE BED COVER
NAPPKIN
TOWEL
BATH MATS
CUSHION COVERS

WESTERN WEAR

CORE
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM

57
 SKIRTS
YOUNG
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
DENIM BOTTOM
JACKET
SHORTS
SKIRTS
SPORTY
JACKET
KNIT TOP
WOVEN TOP
KNIT BOTTOM
WOVEN BOTTOM
DENIM
DENIM FULL LENGTH
CAPRI
NIGHT WEAR
GOWNS
SLEEPWEAR

MENSWEAR

CASUAL DENIM
BOOT CUT
REGULAR FIT
SLIMFIT
CASUAL NON- DENIM
KNITTED TOP- FULL SLEAVES
KNITTED TOP- HALF SLEAVES
KNITTED TOP- SLEAVE LESS
WOVEN TOP- FULL SLEAVES
WOVEN TOP- HALF SLEAVES
WOVEN TOP- SLEAVE LESS
WOVEN TOP- H/S BASIC
WOVEN TOP- F/S BASIC

FORMAL
WOVEN BOTTOM- FLAT FRONT
WOVEN BOTTOM- PLEATED
WOVEN TOP- FULL SLEAVES
WOVEN TOP- HALF SLEAVES
INNER WEAR
TRUNK VALUE PACK
WEST VALUE PACK

58
 Y FRONT VALUE PACK
SEMI FORMAL
WOVEN BOTTOM- FLAT FRONT
WOVEN BOTTOM- PLEATED
WOVEN TOP- FULL SLEAVES
WOVEN TOP- HALF SLEAVES
SPORTS WEAR
KNITTED TOP- FULL SLEAVES
KNITTED TOP- HALF SLEAVES
KNITTED TOP- SLEAVELESS
JACKET
KNITTED TRACK BOTTOM
WOVEN TRACK BOTTOM
WOVEN TRACK SHORTS
KNIT TRACK SHORTS
SIZES- SHIRTS T-SHIRTS DENIM REGULAR FIT SLIM FIT

39 to 44 S to XL 28 to 36 28 to 36 28 to 38

FOOTWEAR

MENS FOOTWEAR

 CASUAL SHOES
 FORMAL SHOES
 CASUAL LACE UPS
 FORMAL LACE UPS
 CASUAL SLIP UPS
 CASUAL SLIP ONES
 CASUAL SANDALS
 FORMAL SANDALS
 SPORT SHOES

LADIES FOOTWEAR

 H-HEAL SANDAL
 M-HEAL SANDAL
 WEDGE HEAL SANDAL
 FLAT SANDAL
 CASUAL SANDAL
 SPORTS SANDAL
 COMFORT SANDAL
 FORMAL SANDAL
 EVA SANDAL

KIDS FOOTWEAR

59
  KIDS BOYS
 KIDS GIRLS
 INFANT BOYS
 INFANT GIRLS
 BOTIES

STORE OPENING
1. Check the lock before unlock.
2. unlock the door at 9:30 am.
3. Switch on optimum lights on floor.
4. Security in place with complete uniform.
5. Adequate housekeeping staff sould be in store.
6. Select the housekeeping workdone, cleaning, moppng.
7. Switch on A.C. at 10:00 am.
8. Switch on the music.
9. Trials rooms are empty and clean before 10:30 am.
10. Floats issued in tills and dedicated cashier by 10:25 am.
11. Ensure that staff is complete uniform by 10:30 am.
12. Merchandise well present on the floor.

STORE CLOSING
1. All the tills closed.
2. Switch off sensomatic, E.D.C. machine, music at till point.
3. Recycling of Security ags and hangers.
4. Merchandise well present on the floor.
5. Trial rooms are empty.
6. Switch off A.C.
7. Switch off all lights.
8. Lock Manager’s room.
9. Lock I.T. room.

60
 10. Switch off Sensomatic on both floors and at entrance.
11. Security in place with complete uniform at back door.
12. Manager signature.
13. Security signature.

DUTIES &RESPONSIBILITIES OF STORE MANAGER

Duties & Responsibilities

 S ales Forecas ting & Budget

 P ers onnel Recruitment, s election, training, motivat ion and

evaluat ion

 M erchandis e D is play, Inventory M anagement and merchandis e

reorders

 H andling s tore receipts , preparing bank trans actions , opening

and clos ing s tore

 Review ing cus tomer complaints

 Review ing computer data forms

 Review of overall operations and reports to top management.

61
 DEPARTMENT MANAGERS DETAIL CHECKLIST

 Cleaning and Dus ting

 F loor cleaned and M opped

 F ixture (Clean, A lignment & Breakage)

 S tock Replenis hment

 A ll s tyle dis played on floor.

 S ize cubing on all merchandis e

 P rice tickets on all merchandis e

 S ecurity tag on all merchandis e

 M erchandis e w ell pres ented

 S helf Talkers (Clean and Properly dis played)

 Ens ure ironing of M erchandis e is in proces s .

 Trial rooms clean

 Cas h Counters Clean (M erchandis e, hangers & tags )

 D aily s ales regis ter updation

 D aily grooming check

 Ens ure that the adequate manpow er on the floor on hourly bas is

 S taff should try and attend each and every cus tomer, greeting is

very important

62
 Ens ure that s taff is regularly interacting w ith the cus tomer by

giving exceptional s ervice for cus tomer delight at all time

 Ens ure the pres ence of one manager at any given time on each

floor

 Time and again check that the villing check out is fas t enough

as per the s tandard norms

 Ens ure that the lunch breaks should s tart by 1:00 pm and

finis hed by max 4:00 pm

 Ens ure the pres ence of all s taff on the floor in peak hours

betw een 5:00 pm to 9:30 pm

 Time and again check on w alk- ins , average bill s ize, s ales on

hourly bas is an accordingly

 Encourage the s taff for further improvement

 Ens ure your morning s hift s taff and w eekly off for the next day

is conveyed to all s taff.

 M aintain D M ’s log book on daily bas is & acknow ledge by SM ,

A SM on daily bas is

63
 C R E DETA I L C HEC KLI S T

 Cleaning and dus ting of s helves , brow s ers , arms & back bars .

 Check at 10:30 am floor clean & mopped

 F ixture (Clean & A lignment)

 H ave a w alk on the floor after 10:30 am and check the

replenis hmen t require

 S tock replenis hment for new lines & broken s izes on the floor

 Remove broken s izes from the floor if it is not availabl e in back

 Ens ure that all s tyle dis played on floor

 P rice tickets on all merchandis e

 S tart s ize cubing on all merchandis e

 S ecurity tags on all merchandis e

 M erchandis e w ell pres ented

 S tart ironing of merchandis e at 10:00am till 4:00 pm

 Trials rooms (clean, tokens and manned) by 10:30 am

 Try and attend each and every cus tomer, greeting is very

important.

64
THEORITICAL
BACKGROUND

65
 THEORITICAL BACKGROUND
LOYALTY PROGRAMS: BUILDING CUSTOMER LOYALTY TO BUILD
PROFITS

“Loyalty is one of the great engines of business success”

Frederick F. Reicheld, author of the loyalty effect

Today’s successful readymade garment retailers recognize the

importance of customer retention in their efforts to grow operational profits. to achieve
this, more and more retailers are implementing loyalty programs as a competitive
marketing strategy to build long-term relationships with customers, allocate marketing
rupees based on the customer’s value and derive as much as revenue as possible from
them over a lifetime. of course, loyalty is more than a business strategy. It is an
ongoing, two-way relationship based on respect, trust and commitment – a relationship
in which the customer feels all-important. A successful loyalty program builds and
nurtures such a relationship by accomplishing two critical tasks. the first is to gather
information that will help retailers understand their customers’ tastes, needs and
expectations. The second is to offer recognition and rewards (loyalty card, rewards
card, points card, advantage card, or club card) that are relevant to their customers
as a reward for their loyalty – and as a trade for the personal and transactional data that
starts the loyalty cycle and keeps it going. by tracking members’ transactions,
companies can identify the various segments of their customer base to create strategies
that keep their customers coming back for more.

66
CUSTOMER INFORMATION IS KEY: Effective loyalty programs generate
incremental spending – more rupee spent, more frequently, from customers whose
needs and expectations are understood and met. with 80% of retailers’ business being
generated from as little as 20% of their customers, identifying and understanding their
needs and expectations of this 20% is crucial. by gathering customer information,
retailer can make intelligent marketing decisions that will keep their best and most
profitable customers more loyal. they can also leverage this thinking to increase sales
the under-performing segments of their customer base. the most valuable loyalty
programs to retailers are those which utilize advanced technology to collect data at the
point of sale, track valuable information about customer purchase behavior, and
provide access to rich database reports and analysis that can be used to increase the
effectiveness of retailers’ marketing campaigns. what customers expect:
today’s consumers are more savvy and sophisticated than ever. they expect loyalty
programs to offer:
 easy participation

 instant rewards

 flexible rewards

 fast accumulation of rewards

 rewards claimed at any participating establishment

 special offers

 instant win opportunities

 membership cards

 greetings on special occasion

 gifts

 coupons/vouchers

67
 OBJECTIVE
AND
RESEARCH
METHODOLOGY

68
STATEMENT OF PROBLEM
To know at what extend the loyalty program pulls customers to purchase apparels at
Max Retail and to know the satisfaction level of customers whether loyalty program
increase the sales of Max Retail

OBJECTIVE

 To know the loyalty program adopted by Max Retail and other apparel
retailers.
 To know how Max Retail retain customers using loyalty program.

LIMITATIONS
 The study was taken on at Bhopal region
 The survey was taken only 150 customers

69
 RESEARCH
METHODOLOGY

70
 RESEARCH METHODOLOGY:

1 RESEARCH BACKGROUND

 Research
 Research design
 Data collection
 Sample area
 Sample size
 Sampling design
 Sampling Technique
 Research approach
 Research instrument
 Sampling tool
 Statistical package
 Analytical tool
- Quantitative
- Descriptive Study
- Primary Data
- Indore
- 150 customers
- Non-probability technique
- Convenience sampling
- Survey method
- Questionnaire
- Structured Questionnaire method
- M .S. Excel
- Percentage, cross tabulation

2.RESEARCH METHODOLOGY

Research method is an academic activity and as such as the term should be used
in a technical sense. This research comprises of defining and redefining problem,
formulating hypothesis or suggested solution; collecting; organizing and evaluating
data; making deduction and reaching conclusion; and at last carefully testing the
conclusion to determine they fit the formulating hypothesis. By this way proper
methodology is an essential step in conducting research study.

3. RESEARCH DESIGN
A research design is the arrangement of condition for collection and analysis of
data in a manner that aim to combine relevance to research purpose with procedure.

71
The research design adopted for this study is descriptive type. The objective of such a
study is to answer “who, what, where and how” of the subject under investigation. It is
used because of its extensive flexibility, scope and convenience. A descriptive research
study is basically concerned with narration of particular individual or group with
specific predictions.

3.1 IMPORTANCE OF THE DESCRIPTIVE RESEARCH

 To describe the demographic characteristics of certain group.

 To estimate the proportion of people in a specified population who behave in a
certain way.
 To make specific predictions.
 To determine whether certain variables are associated.

3.2 RESEARCH APPROACH

The survey method was adopted for collecting the primary data. Survey
research is the systematic gathering of data from respondents through questionnaire.

3.RESEARCH INSTRUMENT

The data for this research was collected by survey techniques using interview
method, guided by questionnaire.

4. SAMPLING

Sample denotes only a part of the universe / population. The sample represents
the population and is having the same characterizing as the population.

5. SAMPLING METHOD
Non – probability sampling

72
 This type of sampling technique gives no assurance that every element has
some specifiable change of being included. It is clear that for the non – probability
samples, there is no way of calculating the margin of error and the confidence level.

5.1 CONVENIENCE SAMPLING

Sampling refers the method of selecting items to be observed for the study. The
samples have been selected for the study based on the convenience of the researcher.
The method used here is convenient sampling, where the samples are selected based on
the convenience of researcher.

5.2 SAMPLING SIZE

Sampling size is the number of items to be selected from the universe to
constitute the sample. In this study, a sample study of 150 has been chosen.

5.3 SAMPLING AREA

This study was undertaken at Max Retail Indore.

5.4 PERIOD OF STUDY

45 Days

5.5 DATA COLLECTION DESIGN

A marketing researcher has to make a plan for collecting data which may be
primary data, secondary data or both.
5.5.1PRIMARY DATA
The primary data was obtained by administering survey method, guided by
questionnaire to collect information from customers. The questionnaire is both open
and Closed ended questions
These methods were adopted since the data which is required is highly focused on
customer satisfaction
5.5.2 SECONDARY DATA
The secondary data are collected through various sources like
1. Secondary data are collected through internet related to industry, company,
competitors, etc

73
 2. Review of articles being published on the topic in various magazines and
newspapers
3. Data are also collected from the company brochures etc

5.5.3 QUESTIONNAIRES:
The best way to collect the data is to personally administor the questionnaires.
The advantage of this method is, the data can be collected from the respondents
within a short period of time. Any doubts that the respondents might have on any
question could be clarified on the spot.

5.6 ANALYSIS DESIGN

The study has used various statistical tools for the analysis of data. They are
1.Percentage analysis
2.Cross tabulation.

74
DATA ANALYSIS
AND
INTERPRETATION

75
 DATA ANALYSIS AND INTERPRETATION

1. Have you purchased earlier in Max Retail?

○ yes
○ no

2. PURCHASED BEFORE AT MAX RETAIL

Since there are many apparel retailers at Indore we should know whether
customers have purchased before or not at Max Retail

PURCHASED BEFORE AT MAX RETAIL

PURCHASE FREQUENCY PERCENT

YES 141 94.0

NO 9 6.0

TOTAL 150 100.0

76
INTERPRETATION:
From the above table we conclude that 94% of the customer have purchased before at
Max Retail

77
3. Do you have Max Retail green card?
○ yes ○ no
HOLDING MAX RETAIL GREEN CARD
This helps to know how many respondents are holding Max Retail green card

HOLDING GREEN
CARD FREQUENCY PERCENT

YES 100 66.7

NO 50 33.3

TOTAL 150 100.0

INTERPRETATION:
From the above table we conclude that nearly 66.7% of customers are holding Max
Retail green card and other 33.3% are not having green card
>If yes since how long you’ve been a member of green card programme?
○ (0-6 months) ○ (6 months – 1 year) ○ (1-2 years) ○ (more than 2 years)

4. How frequently do you shop in Max Retail?

○ As per needs ○ monthly ○ once in 3 months

5. In a year how much do you purchase in Max Retail?

78
 ○ Less than 8,000 ○ 8,000 – 20,000 ○20,000-40,000 ○ above 40,000

6. FREQUENCY OF PURCHASE AT MAX RETAIL:

FREQUENCY OF PURCHASE FREQUENCY PERCENT

AS PER NEEDS 102 68.0

MONTHLY 9 6.0
ONCE IN 3 MONTHS 39 26.0
TOTAL 150 100.0

INTERPRETATION:
From the above table it is concluded that nearly 68% of customers are purchasing as
per need at Max Retail an remaining 26% are purchasing once in 3 months

79
7. How satisfied are you with the purchase you made in Max Retail - rating scale?
(5-higly satisfied 4-satisfied 3-nutral 2-unsatisfied 1-highly unsatisfied)
PARTICULAR 5 4 3 2 1
Overall shopping
experience

OVER ALL
SHOPPING
EXPERIENCE FREQUENCY PERCENT

SATISFIED 10 6.7
HIGHLY SATISFIED 140 93.3
TOTAL 150 100.0

SATISFACTION LEVEL ON OVER ALL SHOPPING EXPERIENCE

This helps to know the satisfaction level of customers at Max Retail

80
INTERPRETATION:
From the above table we come to know that 93.3% of the customers are highly
satisfied in the overall shopping experience at Max Retail

81
8. How satisfied are you with the purchase you made in Max Retail - rating scale?
(5-higly satisfied 4-satisfied 3-nutral 2-unsatisfied 1-highly unsatisfied)
PARTICULAR 5 4 3 2 1
Quality

SATISFACTION LEVEL IN QUALITY AT MAX RETAIL

This helps to know about the satisfaction level on quality because quality is more
important in apparels and it helps to decide for next purchase.

QUALITY FREQUENCY PERCENT

UNSATISFIED 3 2.0

SATISFIED 19 12.7

HIGHLY SATISFIED 128 85.3

TOTAL 150 100.0

82
INTERPRETATION:
From the above table we come to know that the satisfaction level in quality of goods
and services in which 85.3% of customers are highly satisfied and only 2% of the
customers are not satisfied in the quality

83
9. How satisfied are you with the purchase you made in Max Retail - rating scale?
PARTICULAR 5 4 3 2 1
Discounts

(5-higly satisfied 4-satisfied 3-nutral 2-unsatisfied 1-highly unsatisfied)

SATISFACTION LEVEL IN DISCOUNTS AT MAX RETAIL:

The discount is one of the main factor for pulling customer to purchase more and more
so we should know the satisfaction level at Max Retail

DISCOUNT
FREQUENCY PERCENT

HIGHLY UNSATISFIED 4 2.7

UNSATISFIED 8 5.3
NUETURAL 42 28.0
SATISFIED 37 24.7
HIGHLY SATISFIED 59 39.3

TOTAL 150 100.0

84
INTERPRETATION:
From the above table we conclude that nearly 39.3% of the customers are highly
satisfied
And only 5.3% of the customers are highly unsatisfied

85
10. How satisfied are you with the purchase you made in Max Retail - rating scale?
(5-higly satisfied 4-satisfied 3-nutral 2-unsatisfied 1-highly unsatisfied)
PARTICULAR 5 4 3 2 1
Service

SATISFACTION LEVEL OF CUSTOMERS IN SERVES:

The serves is an important factor at retail because if the retailer does not provide a best
serves then the wont come back so we should provide better serves so we should know
the satisfaction level

SERVES FREQUENCY PERCENT

UNSATISFIED 8 5.3
NUETURAL 62 41.3
SATISFIED 43 28.7
HIGHLY 37 24.7
SATISFIED
TOTAL 150 100.0

86
INTERPRETATION:
From the above table we come to know that 24.8% of customers are highly satisfied
and 41.3% of the customers are in neutral level

87
SATISFACTION LEVEL ON FREE PARKING FACILITY AT MAX RETAIL:
Parking facility is one of the big problem today and certain customers
hesitate to purchase if there is no parking facility so customers should be satisfied in
parking facility

PARKING FREQUENCY PERCENT

HIGHLY UNSATISFIED 7 4.7

UNSATISFIED 8 5.3
NUETURAL 28 18.7
SATISFIED 45 30.0
HIGHLY SATISFIED 62 41.3
TOTAL 150 100.0

PARKING FREQUENCY PERCENT

HIGHLY UNSATISFIED 7 4.7

UNSATISFIED 8 5.3
NUETURAL 28 18.7
SATISFIED 45 30.0
HIGHLY SATISFIED 62 41.3
TOTAL 150 100.0

INTERPRETATION:
From the above table we conclude that 41.3% of the customer are highly satisfied with
free parking facility provided by Max Retail

88
11. All problems and queries are solved and answered satisfactorily at the green card
desk?
○ Strongly Disagree ○ Disagree ○ Neutral ○ Agree ○ Strongly Agree

SOLVING PROBLEM AND QUIRES:

In retail sectors customers are more important without customers it’s very
difficult to survive so solving of customer problem and should clear the quires

SOLVING PROBLEM
AND QUIRES FREQUENCY PERCENT

DISAGREE 2 1.3
NUETURAL 50 33.3
AGREE 61 40.7
STRONGLY AGREE 37 24.7
TOTAL 150 100.0

89
INTERPRETATION:
From the above table we conclude that nearly 40.3% of the customers are agreeing
and only 1.3% of the customers disagree the problem solving and quires

90
12. Do you receive periodic and proper updates regarding offers and promotions (mail/
sms / hordings / advertisement) from Max Retail?
○ yes ○ no
PERODIC AND PROPER UPDATES:
Relationship with customer is more important we should have a close
touch in order to earn profit and increase the sales

Periodic and
proper updates Frequency Percent

Yes 107 71.3

No 43 28.7
Total 150 100.0

INTERPRETATION:
From the above table we come to know that 71.3% of the customer get periodic
and proper updates from Max Retail

13. What do you think about the current loyalty program?

91
 ○ Excellent ○ Good ○ Average

CURRENT LOYALTY PROGRAM

USING GREEN CARD EXCELLENT GOOD AVERAGE TOTAL

YES 91.3% 64.6% 41.0% 66.7%

NO 8.7% 35.4% 59.0% 33.3%

100.0% 100.0% 100.0% 100.0%

CURRENT LOYALTY PROGRAM : This helps to know how effective is current

green card program at Max Retail

INTERPRETATION:
From the above table we come to know that 91.3% of the customers using
green card says that the current loyalty program is excellent.

14. Would you recommend your friends to get enrolled in to the green card program
Max Retail?

92
 ○ Yes ○ No ○May be/can’t say
RECOMMENT OTHERS TO ENROL GREEN CARD:
Customers should be satisfied with green card then only they will
recommend others to enrol green card this helps to know people using green card are
they willing to recommend others

RECOMMEND TO
ENROLLED IN THE GREEN
USING GREEN CARD CARD PROGRAM

YES MAY BE TOTAL

0-1YEAR 1.8% 9.3% 5.0%

1 - 2 YEARS 19.3% 34.9% 26.0%

MORE THAN 2 YEARS 63.2% 30.2% 49.0%

TOTAL 100.0% 100.0% 100.0%

INTERPRETATION:
From the above table we conclude that 63.2% of customers using Max Retail green
card for more than 2 years say’s they will recommend their friends to enrol in green
card program
15. Do you hold privilege cards of any other retailer? If yes, which one?
○ Shopper stop ○Lifestyle ○Globus ○Westside ○Other

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 HOLDING OTHER LOYALTY CARDS
Now a days many apparel retailers have started providing green card this helps
to know how many customers are using other loyalty card

HOLDING OTHER PRIVILAGE CARD

MONTHLY
INCOME
SHOPPER LIFESTYL
STOP E GLOBUS WESTSIDE OTHER TOTAL

20000 18.8% 14.3% 7.7% .0% 16.7% 14.0%

21000 - 35000 16.7% 9.5% 15.4% 14.3% 16.7% 13.3%

36000 - 50000 29.2% 34.9% 46.2% 85.7% 33.3% 37.3%

ABOVE 50000 35.4% 41.3% 30.8% .0% 33.3% 35.3%

TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

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INTERPRETATION:
From the above table we conclude that people having monthly income of more than
50000 are using loyalty card where 41.3% of customer using lifestyle card

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 Learnings

 How to Interact with Customers.

 How to satisfied Customer’s need.
 How to display your Products.
 How to Manage the Employees.
 How to Motivate the Employees.
 How to Manage the Store.
 How to take Meetings for Employees.
 How to give targets for Sales to Emloyees.
 How to check the Performance of the Employees.

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CONCLUSION

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 CONCLUSION

I conclude by telling that today many retailers are

selling apparels so retaining customer is very difficult and
its not very easy we have to pull customers for repeated
purchase .the loyalty program plays a vital role in pulling
customers to purchase apparel.

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 RECOMMENDATION

 Sitting area should be there for children and old people

 Provide Complimentary drinks for customers
 Provide out store offers to green card customers
 Billing counter should be placed on two sides at every floor
for convenience
 Entertainment game’s should be conducted in store
 Valet parking should be provided for convenience
 A trained employees has to be at each floor to satisfy need
of customer
 More Advertisement has to be done to increase the foot
fall

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 APPENDIX:
Questionnaire

1. PERSONAL INFORMATION:
Name ________________________
Gender: ○ Male ○ Female
Age: ○ (<18 ) ○ (19 – 25) ○ ( 25 – 40) ○ (40 – 60) ○ (> 60)
Occupation ○ Student ○ Self employed ○ Govt job ○ Other
Marital status ○ Single ○ Married
Monthly income ○ (20k) ○ (21k – 35k) ○ (36k-50k) ○ (above 50k)

2. Have you purchased earlier in Max Retail?

○ yes ○ no

3. Do you have Max Retail green card?

○ yes ○ no
>If yes since how long you’ve been a member of green card programme?
○ (0-6 months) ○ (6 months – 1 year) ○ (1-2 years) ○ (more than 2 years)

4. How frequently do you shop in Max Retail?

○ As per needs ○ monthly ○ once in 3 months

5. In a year how much do you purchase in Max Retail?

○ Less than 8000 ○ 8000 - 20000 ○ 20000-40000 ○ above 40000

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6. How satisfied are you with the purchase you made in Max Retail - rating scale?
(5-higly satisfied 4-satisfied 3-nutral 2-unsatisfied 1-highly unsatisfied)
PARTICULAR 5 4 3 2 1
Overall shopping
experience
Quality
Service
Discounts

Free Parking

Home Delivery

7. All problems and queries are solved and answered satisfactorily at the green card
desk?
 ○ Strongly Disagree ○Disagree ○Neutral
○Agree ○Strongly Agree

8. Do you receive periodic and proper updates regarding offers and promotions
(mail/ sms/ hordings/ advertisement) from Max Retail?
○ yes ○ no

9. What do you think about the current loyalty program?

○ Excellent ○ Good ○ Average

10. Would you recommend your friends to get enrolled in to the green card program
Max Retail?
○ Yes ○ No ○May be/can’t say

11. Do you hold privilege cards of any other retailer? If yes, which one?
○ Shopper stop ○Lifestyle ○Globus ○Westside ○Other

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 BIBLIOGRAPHY

Primary Data Collection :-

Max Retail Indore

Secondary Data Collection :-

http://www.landmarkgroup.com
http://www.maxfashionindia.com
http://www.maxfashion.com
http://www.maxfashionretail.com
http://www.wikipedia.com

Books :-

 Saxena, Rajan. (2003):’Marketing Management’ Tata

Mcgraw-Hill Publishing Company Limited. New Delhi
 Kotler, Philip. (1999):’Marketing Management’ Prentice
Hall Of India Pvt. Ltd., New Delhi.
 Kothari, C.R (2001):’Research Methodology’, Vishwa
Publication., New Delhi
 Sharma,D.D(2002):’Marketing Research’,Sultan Chand
Sons, New Delhi

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