A

PROJECT REPORT
ON

CUSTOMER RETENTION THROUGH LOYALTY

PROGRAM

AT
SHOPPERS’ STOP, SHIVAJINAGAR
PUNE

BY
ANGAD T. ARGADE
 INTRODUCTION

Retail sector is the most booming sector in India. The global retail market is of nearly $7 trillion.
It is the world’s largest employment generator. 50 of the top Fortune 500 companies are related
to the retail sector. Major players of the retail world are Wal-Mart, Tesco, Carrefour, A hold, Kroger.

It is one of the good things happening in India. In India only 3% of the market is organized,
97% of market is till now unorganized. There is great opportunity for the retail market players
in India. In India the major players are Future groups & Raheja group. Players like Reliance,
Bharti group and Aditya Birla group get ready to set up shop.

If government relents, even Wal-Mart, Carrefour may be here in couple of years. There are
various retail formats like Mom-Pop stores, Specialty stores, Discount stores, Super market,
hyper market, Cash-n-carry etc. The hypermarket segment has emerged as the format with
the highest growth in most emerging market & is likely to see the most action in India soon, too.
 OBJECTIVES

PRIMARY OBJECTIVE:-
 TO RETAIN CUSTOMERS THROUGH FIRST CITIZEN LOYALTY PROGRAM

SECONDARY OBJECTIVE:-
 To know about Shopper’s Stop First Citizen Loyalty Program.

 To analysis features and importance of First Citizen Loyalty Program.

 To know the customer entry in the store from different areas.

 To know the customer preference and restriction to shop in Shopper’s Stop.

 To identify competitors of Shopper’s Stop Shivajinagar, Pune.

 To know customer awareness and satisfaction regarding Shopper’s Stop and its offers.
 COMPANY PROFILE

Shoppers stop is one of the leading organized retail sector in India.

Company wants to expand its business in a very effective way to beat the
competition. For this purpose it wants to penetrate deeper into in the market.

Today Shopper’s Stop has acquired status of a pioneer in organized retailing in

the country. With 29 stores across 10 major cities and a plan to open more stores in
its pipeline, Shopper’s Stop does not only have a national presence but is also well
connected with the international retail scene.

It is the only departmental store in India to be a member of IGDS,

‘Intercontinental Group of Department Stores’ where only the best store of each
country gets an opportunity to be a privileged member.
 PRODUCT PROFILE
 FOLLOWING ARE THE PRODUCTS MOSTLY SEEN IN
SHOPPERS STOP :-

 MEN’S WARE
 LADIES WARE
 KID’S WARE
 NON APPEARLS
 COSMETICS & PERFUMES
 LEATHER & LUGGAGE
 HOME APPLIENCES
 SPORT’S WARE.
 RESEARCH METHODOLOGY

Definition of Research:-
“Research is the process of systematically obtaining accurate
answers to significant and pertinent questions by the use of the
scientific method of gathering and implementing information.”
By:-Clover and Balsely

 Type of Research
 Descriptive Research
 Exploratory Research
 Explanatory Research
 METHOD AND TOOLS USED IN
RESEARCH
 Primary Data:-
Primary Data has been collected through well designed questionnaire by
interviewing the customers both internal and external. I talked with the customers
and discuss the questions of questions of questionnaire. The questionnaire designed
and used in survey is given later in the annexure.
 Secondary Data:-
Secondary Data is collected through company website, periodicals, company
sheets, meeting with the management etc.
 Research Design:-
Research design is descriptive research design. I used a questionnaire and
interviewed internal and external customer for collecting the data that helped me
attaining definite solution of problem.
 Sample Size:-
I interviewed 100 internal customers and 100 external customers who visited
the store. These customers are chosen at random barring all age, income etc.
DATA ANALYSIS
CUSTOMER VISITING STORE AGE WISE

• Age of customer: a)less than 18 b) 18-25 c) 25-30 d) 30-35 e) 35-40

f) 40-50 g) 50-60 h) Greater than 60

Interpretation:-
From the above diagram we conclude that, the maximum numbers of customers visiting the store are
between 45 to 55 age group i.e. around 33%, and the least contribution of customers is 9% which lies between
18 to 25 age group.
Recommendation:-
Shoppers’ Stop should concentrate to increase the customer entry of age group 18 to 25 years and 25
to 35 years.
 CUSTOMERS OCCUPATION

Q.) Occupation: a) Student b) Service c) Business d) others

Interpretation:-
The figure indicates that, the highest numbers of customers coming to the store are from service sector
(occupation) i.e. 48% and the least contribution are from student’s category i.e. 11%.
Recommendation:-
Need to communicate store offers and discounts to students and house wives.
 NUMBER OF CUSTOMERS HOLDING CLASSIC, SILVER AND
GOLD CARDS

Interpretation:-
The figure shows that number of customers holding silver card are 41% which is highest contribution
and number of customers holding gold card and classic card are 37% and 22% respectively .
 HOW FREQUENTLY CUSTOMER VISIT SHOPPERS’ STOP
SHIVAJINAGAR
Q.) How frequently you visit Shoppers’ Stop?
a) Weekly b) Monthly c) Occasionally

Interpretation:-
Most of the customers visiting to the store are occasionally and monthly, with 43% and 42%
respectively. And number of customer visiting weekly is only 13%.
WHY CUSTOMER PREFER TO SHOP IN SHOPPERS’ STOP
SHIVAJINAGAR
Q.) Why do you prefer to shop in Shoppers Stop?
a) Service b) Store Loyalty c) Merchandise Availability d) Nearest place

Interpretation:-
The major strength of the store is service and store loyalty, which contribute major portion of
customer’s preference to shop. But its weakness lies in availability of merchandise .
CUSTOMER AWARENESS ABOUT OFFERS & DISCOUNTS

Q.) How do you come to know about Shoppers Stop?

a) E-mail b) Telephone/SMS c) Hoardings/Banners d) Newspaper e) Friends/Relatives

Interpretation:-
The customer awareness about offers and discounts running within the store are communicated
through various modes, but the most effective mode is e-mail and telephone/sms. With 37% and 31%
respectively.
WHY CUSTOMER PREFER TO SHOP IN SHOPPERS’ STOP
SHIVAJINAGAR
Q.) Why do you prefer to shop in Shoppers Stop?
a) Service b) Store Loyalty c) Merchandise Availability d) Nearest place

Interpretation:-
The major strength of the store is service and store loyalty, which contribute major portion of
customer’s preference to shop. But its weakness lies in availability of merchandise .
CUSTOMER PREFERENCE TO SHOP AT DIFFERENT
SHOPPING CENTERS

Interpretation:-
Most of the customers prefer to shop in mall – Central, due to their offering, such as entertainment,
beverage, food bazaar, etc. Even customer prefer Shoppers Stop for its service and Store loyalty, being
competitor West Side and Mega Mart are spreading their wings in the market.
 AREA WISE ANALYSIS

Interpretation:-
The major foot falls are coming from Shivajinagar and Pimpri –Chinchwad area.
Recommendation:-
Need to attract customers from areas – Vishrantwadi, Kothrud, Karve Nagar, Aund and Banner.
 CUSTOMER SATISFACTION

Interpretation:
From above graph, we come to know that customers are more satisfied with the Branding &
Visual merchandising as compare to Merchandise availability.
CONTRIBUTION OF FRESH AND ADD ON CARD

Interpretation:
Above comparison shows that now F C’s contribution is more by fresh cards than the
add on cards .
 CUSTOMER’S PREFERENCE FOR FIRSTCITIZEN CARDS

Interpretation:
from the above diagram we conclude, that maximum customer’s preference for first citizen
card is because of service & store loyalty.
 FINDINGS

75% to 80% business is done through First citizen card holder,

Which indicates the importance of Shopper’s Stop loyalty program.

Shopper’s Stop has host its business in most the areas of Pune through
loyalty program as compared to other competitors. This is how loyalty
program increases customer entry and sales of the store.

In Shoppers Stop only old employees, who are more than one year in the
system are able to convince customers for its loyalty program, especially
cashier (males) but new employees which are less than 7 to 8 months in the
system and especially females are not able to contribute.

Before even girls were able to touch the figure of 100 to 110 enrollments in
a month but now even boys are not able to touch figure of at least 100
enrollments in a month.
continue………….
 Store is not able to maintain its new customer entry lot because of less
varieties, sizes, fashion, styles, brands; etc. and there by it is losing its customer. (It
means one customer lost five customers gain by its competitors).

As compared to its competitors it is losing on “liveness” like competitions,

programs, D.J. music, Celebrities, Birthday, festival celebration, etc. which can make
customers attached to the store.

Shoppers Stop has many loyal customers because of its good service and
60% business comes from Silver Edge card holders and Golden Glow card holders but
is losing on new customers i.e. it is not able to get new lot customer entry into the store.
 SUGGESTIONS
Advertising:-
The store needs to concentrate on advertisement of offerings and discounts,
because most of the customers (except first citizen card holders) in different areas are
not aware of offers and discounts running within the store. Store do concentrate on e-
mail, and telephone-calling, but should improve on other means of communication,
such as; leaflets, newspapers, posters, etc. which can be more focusing as well as
effective.

Merchandise availability:-
The customers visiting the store are not satisfied with the merchandise availability like,
size, colour, new styles, etc. so the store needs to focus on the proper merchandise
availability. This will keep customer satisfied and help store to achieve its sales target
and improve in retaining the customer.

Proper marketing channel:-

Proper marketing channel can give so much opportunity to any firm to perform well.
Some promotional activity like advertisement by print media hording favorable offer
for customer are required for attracting large number of customer entry.

continue………….
 Customer relationship management :-
As there are some royal and regular customers visiting the store, this special customers
need to be attended by the managers, so that they can make the customer purchase
more and create good relationship with them. This would make customer to feel special
and different.

Geographical Segmentation:-
Store does have customers coming from different areas like Aundh, Banner, Pimpri-
Chinchwade. But if store concentrates and take major steps to attract customers, from
these areas can make more business.

Reward points :-
First citizen card provides good benefits like sale pre-view, tie-ups, free parking
facility, etc. but need to work on its reward point system which is very less i.e. classic
moments card 0.70% , sliver edge card 1.40%, and golden glow card 2.10%, back on
their every purchase. This will not only help to attract the customers towards loyalty
program but also help to retain and maintain the customers.

continue………….
 Trainings

Two types of training regarding first citizen program need to be given to the new
employees that means first within 15 days of their joining and second after 30 days of
their joining, so that they can know well about the first citizen program in first training
and solve, discuss and overcome the problems of enrollment in second training.

Consumer Behavior
PUCCA (Product Understanding Customer Care Associate)
RSS (Retail Selling Skills)
Add on Sales, Etc.
.
 CONCLUSION
 New customers are in perception that Shoppers Stop is very costly
and they don’t come under their category, but that is not true because
Shoppers Stop do have low as well as high range price point products.
Where even middle class people can manage to shop.
 Shoppers Stop has many loyal customers because of its good service
and 60% business comes from Silver Edge card holders and Golden
Glow card holders but is losing on new customers i.e. it is not able to
get new lot customer entry into the store.
 The ratio of customers’ entry with regard to youth and matured
customers is 30:70 respectively which is not that good and should try
to change the ratio at least 50:50
 Except First Citizen Card Holders, other customers are not aware
about the offers and discounts running within the store and there is
permanent patch of thinking in customer’s mind that Shopper Stop
does not have any offers and discounts, but again that is not the case.
Thank You………!