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SUBMITTED TO
PREFACE
BIRLA INSTITUTE OF TECHNOLOGY & SCIENTIFIC RESEARCH
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Following report is the outcome of my summer training, which I undertook in Pantaloons Retail India Ltd, which is a division of Future Group Ltd, from 21st May07 to 21st july07. The Project which given to me was on:-
RELATIONSHIP CUSTOMER
The basic objective of my training was to find out the ways, how to increase the contribution of green card members in the current sale of the store and also to learn how the other departments are performing their work. In order to find out the customers taste & their satisfaction level from the Pantaloons, I conducted a survey in the Pantaloons Store, Noida. It might be possible that the conclusion drawn from the study might not reflect the actual situation regarding the project, but it gives a fair idea regarding the current trend. The outcome of the study attempts to throw some light on the current state of consumer mind, taste and preference regarding the brands and product available in the store.
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Nidhi SHARMA
ACKNOWLEDGEMENT
I take this opportunity to thanks all those people that helped me and guided me during my summer training. First of all I acknowledge a deep indepetences to the management of pantaloons Retail India Ltd.who kindly permitted me to undertake the training in their organisation. I express my deep gratitude to Mr. Rohit Singh Panwar (Store Manager) & Mr. Pratap Srimali (Department Manager) for helping me throughout the training period. I am very thankful to Mr. Amit Lal (Area Manager), future group & my sincere thanks to all faculty members who guided me to prepare this project report. I would also like to extend my special thanks to Mr. Nitin Babbar (Department Manager), Mr. Shobhit Chaturvedi (Department Manager), Mr. Sunny Yadav (Department Manager), Mr. Umang (Sr. Executive HR), Ms. Dipika Chhabra (VM) and also thanks to all other staff member of pantaloons store, Noida for their cooperation and amicable behaviour.
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DECLARATION
I NEHA SHARMA hereby declare that the project report entitled CUSTOMER LOYALTY PROGRAM AND CUSTOMER SATISFACTION has been written by me on the basis of my summer training at PANTALOONS RETAIL INDIA LTD. during MAY-JULY 2007, and has not been submitted anywhere in any manner.
Nidhi SHARMA
RETAILING
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Retailing includes all the activities involved in selling goods and services directly to final consumers for personal, non-business use. Retailing consists of the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the purchasers. Retailing may include subordinated services such as delivery. Purchasers may be individual or businesses. In commerce a retailer buys goods or products in large quantities from manufactures or importers, either directly or through whole sellers, and then sells smaller quantities to the end users. 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 over all distribution strategy. India's largest industry, the retail sector is valued at $200 billion accounting for over 10 per cent of the country's GDP and around eight per cent of the country's employment. It has emerged as one of the most dynamic industries with several players entering the market. Retail industry in India is at the crossroads. One of the major factors playing a role is income Increase in Disposable incomes of customers across various sectors.
LEVELS OF SERVICES:
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SELF-SERVICE:
Self-service is the cornerstone of all discount operations. Many customers are willing to carry out their own locate-compare-select process to save money.
SELF-SELECTION:
Customers find their own goods, although they can ask for assistance.
LIMITED SERVICE:
These retailers carry more shopping goods, and customers need more information and assistance. The store also offer services such as credit and merchandise return privileges.
FULL SERVICE:
Sales people are ready to assist in every phase of the locate-compareselect process.
DEPARTMENT STORE:
Several product lines- Clothing, home furnishing & household goods, with each line operated as a separate department managed by specialist. Example: Big Bazaar.
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SUPER MARKET:
Relatively large, low cost, low margin, high volume, self service operation design to serve total needs for food, laundry, and household goods.
CONVENIENCE STORE:
Relatively small store located at near residential area, open long hours, seven days a week and caring a limited line of high turnover convenience products at slightly higher prices, plus takeout sandwiches, coffee, soft drinks.
DISCOUNT STORE:
Standard merchandise sold at lower prices with lower margin and higher volumes. Discount retailing has moved into specialty merchandise store such as discount sporting goods stores, electronic stores and book store. Example: Wal-Mart.
SUPER STORE:
About 35000 sq.ft. of selling space aimed at meeting consumers total need for routinely purchased food and non food items, plus services such as laundry, dry cleaning, shoe repair, check clearing and bill paying.
HYPER MARKETS:
Range between 80000 to 220000 sq. ft. area and combined super market, discount and warehouse retailing. They feature bulk display and minimum handling by store personnel, with discounts for customers who are willing to carry heavy appliances and furniture out of the store.
CATALOG SHOWROOM:
Selection of high-markup, fast moving, brand name goods at discount prices. Customers order goods from a catalog, then pick these goods up at a merchandise pickup area in the store.
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FRANCHISE ORGANIZATION:
Contractual association between a franchiser and franchisees. Franchising has been prominent in dozens of product and services areas. Examples: McDonalds, Pizza hut.
MERCHANDISING CONGLOMERATE:
A free from corporation that combines several diversified retailing lines and forms under central ownership, along with some integration of distribution and management. Example: Baskin-Robbins.
Retail in India
India's largest industry, the retail sector is valued at $200 billion accounting for over 10 per cent of the country's GDP and around eight per cent of the country's employment. It has emerged as one of the most dynamic industries with several players entering the market. 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 towards becoming the next boom industry owing to a steady increase in the disposable incomes of the middle class households. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a retail revolution. Modern retail has entered India as seen in sprawling
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shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The key growth drivers of the organized retail industry in India are:
Customer - The customer today is far more discerning than he Real estate prices The consistent fall in the prices of real
estate
was earlier.
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FUTURE GROUP
uture Group is Indias leading business group that caters to the entire Indian
consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics.
Apart from Pantaloon Retail, the groups presence in the retail space is complemented by group companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew Bar. The groups joint venture partners include French retailer ETAM group, US-based stationary products retailer, Staples and UK-based Lee Cooper. Group company, Planet Retail, owns and operates the franchisee of international brands like Marks & Spencer, Next , Debenhams and
Guess in India. The groups Indian joint venture partners include, Maniple Healthcare, Talwalkars, Blue Foods and Liberty Shoes.
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Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group has launched a consumer credit and financial supermarket format, Future Money and soon plans to offer insurance products through a joint venture with Italian insurance major, Generali.The group is currently developing over 50 malls and consumption centers across the country and has formed a joint venture company focusing on mall management with Singapore-based Capital and, one of Asias largest property companies.
Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is Rewrite rules, Retain values.
GROUP VISION
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
GROUP MISSION
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.
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We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
CORE VALUE
Indianness: confidence in ourselves. Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build longterm relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.
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AFFILIATED COMPANIES
PARTNER COMPANIES
Home Solutions Retail (India) Ltd.:Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home improvement and consumer electronics retailing segment. It caters to home management requirements and products, including furnishings and textiles, furniture, consumer electronics, home electronics and home services. It operates retail formats like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got It.
Future
Capital
Holdings:-
Future Capital is the financial arm of the group and is involved in asset management (both private equity and real estate funds) with plans to get into other financial services including insurance, credit and other consumer related financial services. It is associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment Advisers Ltd., and Ambit Investment Advisory Co. Ltd.
Indus
League
Clothing
Ltd.:-
The group owns a majority stake in Indus League Clothing Ltd., one of the leading apparel manufacturers and marketers in India. Some of its leading brands include Indigo Nation, Scullers, Urbana, Urban Yoga and Jealous.
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Galaxy Ltd.:-
Entertainment
Corporate
The group owns a stake in Galaxy Entertainment Corporate Ltd., that operates chains like Bowling Company, Sports Bar and Brew Bar.
Planet
Retail
Holdings
Ltd.:-
The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India.
Foot mart Retail:Foot mart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India.
CapitaLand
Retail
India:-
The group is a joint venture partner in Capital and Retail India, along with Singapore-based Capital and Limited. The company provides retail management services to retail properties owned or managed by various group companies and investment funds.
LINE OF BUSINESS
1. 2. 3. 4. 5. E-Tailing Foods Fashion Home & Electronics General Merchandise
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6. 7. 8. 9.
Telecom & IT Leisure & Entertainment Wellness & Beauty Book & Music
1. E-Tailing
Futurebazaar.com Futurebazaar.com offers the widest range of products at lowest prices everyday! Having pioneered the retailing business in India, PRIL has now decided to revolutionize the consumer e-commerce business in India. It intends to provide customers with a streamlined, efficient and world class personalized shopping experience, which will be supported with the best technology platform. Buying products is a 3 step simple process. All one has to do is Search, Register and Buy. Here you can expect a shopping experience akin to shopping at an actual bazaar but with added simplicity & everyday low prices and an assurance of 'your product' will be delivered within 7 days of purchase. We are proud to inform you that Future Bazaar has been named as the Best Indian Website 2007 in the Shopping category by PC World. Future Bazaar won the top spot after beating other established players like Rediff, India times, Sify, eBay, India plaza, Chennai Bazaar and India Mall. The award was presented to Future Bazaar for its "decent, nononsense approach, while providing a good shopping experience".
2. Foods
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Bar, Bar
3-Fashion
a) All, b) Big bazaar, d) Central, k) Top 10 h) Navaras, i) c) Blue sky g) Gini & Joney, j) Pantaloons, Lee Cooper, f) Fashion station,
General Merchandise
b) Big Bazaar wholesale club, d) Brand Factory, e) g) Pantaloons,
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c) Tulsi, d) Turmeric
COMPANY PROFILE
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operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Headquartered in Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 350 stores across 40 cities in India and employs over 18,000 people. The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, m Bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. Pantaloon is not just an organization- it is an institution, a center of learning and development. Pantaloons believe that knowledge is the only weapon at their disposal and their quest for which they are focused, systematic and unwavering. Pantaloons take pride in challenging conventions and thinking out of the box, in traveling on the road less traveled. Pantaloons corporate doctrine rewrite rules retain values is derived from this spirit. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the
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Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona .Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
PANTALOON CULTURE
Passion for Retail is why we are here. At Pantaloon, Empowerment is what you acquire and Freedom at Work is what you get. We believe our most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years, our skilled & qualified professionals work in an environment where change is the only constant. Powered by the desire to create path-breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference to Customers lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at Pantaloon and living with the change, a habit. Leadership is a value that is followed by one and all at Pantaloon. Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. In the quest of creating an Indian model of retailing, Pantaloon has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and be successful at it. We do not predict the future, but create it.
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At Pantaloon you will get an opportunity to handle multiple responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards. At Pantaloon you will work with some of the brightest people from different spheres of industry. We believe its a place where you can live your dreams and pursue a career that reflects your skills and passions. Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership value, the company launched all in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women. The way we work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality that change peoples lives, is our biggest advantage. Pantaloon is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an
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opportunity to take risks, and it is this passion that makes our dreams a reality. Come enter a world where we promise you good days and bad days, but never a dull moment! The Store is divided into 6 sections:
Mens Wear:
The Men's department has been further classified into Formal Wear and Casual Wear. In the formal wear section they have brands like John Miller shirts, pantaloons brand of trousers. In the casual wear section they have Pantaloon Cotton Trousers, Bare Casual Shirts and bare brand of jeans. All these brand are exclusively available at Pantaloon Stores. The pricing has also been done taking into consideration the various segments of our customers.
Ladies Wear:
The Ladies Department has been further sub divided into Western Wear and Ethnic Wear. The Ladies western wear consists of ladies formal wear, skirts and tops, capris and jeans while the ethnic wear consists of an exclusive collection of Salwar Kameez and Mix'N'Match. They also have a variety of ladies lingerie.
Kids Wear:
The Kids Department has an interesting range of garments for both Girls and Boys. They have a variety of T-shirts, Shirts, Jeans, Cargos, and Trousers for kids.
Accessories:
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In the Accessories department Pantaloons has a classic collection of John Miller ties, Belts, Sleep suits, Caps and Hankies.
Jewellery:
Pantaloons has a variety of jewellery in both gold and imitation jewellery. Pantaloons is the exclusive retailer of Cygnus, Nirvana & Ishis brands of jewellery in the Pantaloon store, Noida. They also have the Ola brand of silver jewellery in the imitation jewellery category.
Cosmetics:
Pantaloons have almost all the major brands present in their store. They have a range of products in Revlon, Maybelline, Maxfactor, Chambor in cosmetic and CK, Nina Ricci, Davidoff, Bvlgary, Dior and Versace brands in perfumes and deodorants.
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FINANCIAL STATUS
INTERNAL CONTROLS AND THEIR ADEQUACY
The company has a sound system of Internal Controls for financial reporting of various transactions, efficiency of operations and compliance with relevant laws and regulations. The company has well defined organization structure, documented policy guidelines, predefined authority levels and extensive systems of internal controls to ensure the optimum utilization of companys resources. Internal controls and their adequacy. The company is continuously upgrading its internal control systems by measures such as strengthening of Information technology infrastructure and use of external management assurance services. The Retail Management exercise is being conducted by Ernst & Young who advised the company in mitigating the risks. The Audit Committee, comprising independent directors is involved in regularly reviewing financial and risk management policies, significant audit findings, the adequacy of internal control systems and compliance with the accounting standards.
Sales
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Operating Profit
Operating profit of the company for the year 2005-2006 stood at
Interest
Interest & Financial charges outflow has marginally increased from
Rs.2,745.66 lacs in 2004-05 to Rs.3,352.48 lacs in 200506.The interest & financial charges cover during the year under review improved to 4.36 as compared to 3.42 in the preceding year. The company reduced the overall interest cost through conversion of working capital loan from banks into commercial papers.
Net Profit
Net profit of the company for the year under review stood at
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Dividend
The company has proposed the dividend of 25% for the current year amounting to Rs.766.38 Lacs. (Including corporate dividend tax)
Capital employed
The capital employed in the business increased by Rs.62,082.89 lacs in 2005-06. This is reflected in the liabilities side of the balance sheet through an increase in borrowings by Rs.31,517.81 lacs and an increase in equity by Rs.30,656.08 lacs. Return on capital employed has been reduced from 22.41% to 17.88% on account of significant investment in subsidiaries and joint ventures and lease rental deposits given for stores.
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Introduction
We have been hearing a lot about CRM aka Customer Relationship Management in almost all we come across in our day to day life. Whether it is Newspaper, Outdoor Hoardings or Mailers we receive from hundreds of places etc. What exactly does this connote to a layman? The simple answer to it is a way of differentiation between customers to provide greater value to more valuable customers. The meaning of more valuable would be in terms of the monetary spending received from the customer along with regency and frequency of visit. Every retailer today is aiming at an attempt to make a casual customer into a loyal customer who develops a bond with the retail store he/she visits. Customer relationship management as a transactional exchange helps the marketer to understand the customer's sentiments and buying habits so that the customer can be provided with products and services before he starts demanding them. This project throws light on the role of Customer Relationship Management (CRM) in enhancing the Customer Lifetime Value (CLV). A successful and effective CRM programme results in increase of Customers Lifetime Value for the store. The importance of the tangible and the intangible offerings are also discussed. A good CRM Strategy should focus on: Building dynamic relationship with the customer,
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making CRM the key element to building customer loyalty to a store brand and to build a significant competitive advantage.
Role of CRM
Expectations of customer is increasing, he asks for more and more value for the same price, and whoever provides him increasing value for money, he buys products from that marketer. Every retailer today is aiming at an attempt to make a casual customer into a loyal customer who develops a bond with the retail store he/she visits. The entire concept of CRM today has also evolved over a period of time. Customer relationship management is ahead of the transactional exchange and facilitates the marketer to understand the customer's sentiments and buying habits so that the customer can be provided with products and services before he starts demanding. This is possible through the integration of four important components i.e. people, process, technology and data. Today the term CRM has become a buzzword in the Indian Retail world. There are a host of reasons which can be attributed to the changing consumer paradigm and the role played by the organized retailers in making CRM a happening phenomenon. Every retailer in India today is looking at some or the other form of CRM or its prime constituent loyalty based programme. In the retail milieu, where generating and retaining footfalls is the greatest impediment to success, the challenge lies in constantly innovating methods of attracting new customers and keeping there
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interests alive. Loyalty programmers as part of CRM based activity are one of the ways of overcoming this challenge.
The variety of activities together play an important role in bringing repeat customers and in turn generating positive word of mouth to also increase new footfalls into the store. This leads to the development of an enthusiastic set of customers who can be approached to convey all new developments, events and promotions. Data Mining activities through CRM also provides insights and knowledge about the retailers most valuable customers who result in maximum sales. We also understand the Pareto's Principle which talks about generating 80% of sales from 20% of the customers. This can only happen if the retailer has the 20% as its most profitable customers and not just normal customers. This completely depends upon the kind of business the retailer is into and there is nothing sacrosanct about this understanding. A successful and effective CRM programme results in increase of Customers Lifetime Value for the store. Examples: Today these and similar kinds of programmer are being run all across India by local as well as national retailers. Let's understand the kind of CRM programme offered by the Pantaloons having a national presence to lure its customers:
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Pantaloons
Known as the Green Card' it is divided hierarchically into one star, three star, five star and seven star. Criteria for star generation are:
On Purchase of Rs.2500/1 Star Members Gift Voucher worth Rs. 150 on enrolment
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Green Card is just like passport to a whole new world of exclusive benefits and privileges. Instant discounts* for every time you shop at Pantaloons. Exclusive shopping days to get hold of latest merchandise. Regular updates on collections and promos via catalogues, sms and email. Special invites to the most happening events. Extended exchange periods and complimentary drops for alterations. Exclusive billing counters and much more. *Categories valid for Green Card Discounts: Apparel, perfumes & cosmetics, toys, Blue-sky, aLL, Depot, Planet Sports & accessories. Valid on categories within Pantaloons only. Also valid at standalone, Blue sky and aLL stores.
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Membership-Validity
1 Star card is valid for a period of 2 years from the date of enrolment. 3, 5 and 7 star cards are valid for a period of one year from the date of upgrade.
Membership Renewal
Purchase worth Rs. 7500 within 2 years of card issue date and retain a 1 star status Purchase worth Rs. 7500 within 1 year of card issue date and retain a 3 star status Purchase worth Rs. 15000 within 1 year of card issue date and retain a 5 star status Purchase worth Rs. 40000 within 1 year of card issue date and retain a 7 star status
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Green-Add-on-Cards
Green Card benefits can now be shared with members of Green card members family. Family of Green card members also be entitled to direct discount and other privileges that we have to offer. A 1 and 3 star member is entitled to have 1 add-on card. However a 5 and 7 star member is entitled to have 2 add-on cards.
Green-Days
Exclusive Green Card shopping day gives a preview of End Of Season Sale, so that Green card members are first to get hold of the latest merchandise.
Green-Channel
Our special billing counter is open to all Green Card members during End of Season sale. Now Green card members can avoid the rush at the regular billing counter.
Green-Offers Promotions
These are exclusive shopping offers sent to Green card members on a regular basis. Flash Green Card and claim the special offers and promotions. At times, offers open to all customers are further enhanced for our esteemed Green Card members.
Green-Service-Desk
For all queries, information and services, contact the Green Service Desk at any Pantaloon Store.
Green-Exchange
Now Green card members can exchange their products within 60 days of purchase. (90 days for Seven Star members)
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Green-Drop
Busy schedule of Green card members may not permit them to collect their alterations or purchases. Green card members can ask for the Green Drop Service and purchases will be home-delivered to them. This service is exclusively available to the 7 star members all round the year and also to the 5 star members except for end of season sale period.
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Find out the customer taste and preference. To find out the customers satisfaction level from the Pantaloon store. To find out the behaviour of customers towards the products, which are promoted by celebrities. To find out the ways, how to provide best services to customers. To find out, what factors drive customers to other places, like Shoppers stop, Life style, Globus, Pyramid etc To find out the customers brands satisfaction level. To find out the schemes provided by others. To find out the marketing strategy of Shoppers stop, Globus, Life style. To know the pre purchase behaviour of customers.
RESEARCH METHODOLOGY
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Application of scientific procedures the main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Marketing research is the careful analysis of a business situation by scientifically analyzing it and using various statistical applications to the subject of study. Research is the process of finding a solution through the use of scientific tools and techniques. Marketing research is a methodical and purposeful study conducted to obtain solution for specific marketing problem. As far as method is concerned, I preferred personal interview or face to face meeting to ensure accurate information and encourage frank response to questions. At the same time telephone or mail survey was not possible. While framing the questionnaire, I tried to list a series of question, which could elicit the needed information for proposed study. Questions, which were of no particular value for the study objectives, were not included. I also tried to keep in mind the respondents understanding capacity, ability to recall the information and his experience limits. I didnt include those Questions in the questionnaire, which could have raised misconception and promoted non-cooperation on their part.
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However in the questionnaire I used simple words, which were easy to understand, and beyond any doubt. In the same way ambiguous questions were not included and questions were arranged in a logical order.
RESESRCH INSTRUMENT
The research instruments generally used to collect primary data are questionnaires and mechanical instrument. Some of these are;
Questionnaire:Questionnaire are formal sets of questions, prepare to collect the require information .this is one of the most effective and popular technique used in survey. Questionnaire is a tool which provide right information.
Sampling:Proper sampling design is essential in marketing research so the sample has to be collecting in such a way that it represents the entire population. My project is based on consumer awareness so I am taking sample of those people who shop regularly.
Sample unit:The portion of the population that researcher need to target and that represent the entire population is known as a sample unit. So I am targeting the those customers who shop regular and visit store regularly
Sample size:The size of the sample is an important element in the research process so I am taking the 100 people.
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Collecting of data:In dealing with customers it is often found that data, at hand are inadequate, and hence it became necessary to collect data that are appropriate and adequate. There are two way of collecting the appropriate data:1.
By observation:
This method implies the collection of information by investigators own observation, without interviewing the respondents .In survey many times I observed that this customer is interested to fill up the questionnaire or is really interested in the services, variety and brands provided by Pantaloons.
2.
Personal interview:
I have also collected my data through Personal interview. I made a well structured questionnaire and asked them their awareness about brands, products.
Secondary data:
Secondary data is collected from the company internal and external resources. While the internal resources include the company literature, sales report, broachers, pamphlets etc. and the external sources could be included magazines, newspaper etc.
Research type:My project based on consumer awareness so I am taking descriptive and informative research. The main advantages of this research that I have no
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control over the variable. I have done my survey in Pantaloons Store, Noida.
Sampling method:In my survey I have used deliberate sampling. This sampling method involves purposive or deliberate selection of a particular unit of the universe. It can also be known as convenience sampling.
Pantaloons have wider range of products with better quality and price. Creativity in design and always known for fresh fashion. Pantaloon has ability to supply according to the demand of customers. Pantaloon is very friendly to their business clients even small business clients. It has ability to understand the needs of buyers. Competitors have widest range of the product. Long exchange process, which waste the time of customers. Lack of work force Communication Gap employee and customers. between
Good communication and cooperation among staff members. Entertainment programs run in the store to motivate the employees.
STRENGTHS
WEAKNESSES
Store is not for the low middle class customers because of high range of prices. There is no incentive program for employees, which can motivate them to work hard.
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More consumers preference for retail shopping, because of better quality and prices Pantaloons provide better services to their Green card OPPURTUNITY members. Pantaloon is facing strong competition from Shoppers Stop and Life Style. Pricing pressure. More variety of products range offered by competitor.
THREAT More investments in machineries, men and in management to improve quality standards.
Expansions in the product range and value addition.
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I have taken this question to know the taste of customers. There are three options in this question i.e. Casual, Formal and Ethnic.
23% 13%
64%
I have taken the sample of 100 people, in which 64 people like to wear casual, 23 people like to wear formal and 13 people like ethnic. By this, I got that most of people like to purchase Casuals.
ARE
YOU
SATISFIED PROVIDED
WITH BY
THE THE
SERVICES
PANTALOONS?
I have taken this question to know the satisfaction level of the customer with the services provided by the Pantaloons. In this question I tried to define the satisfaction level through the point 1-10, where 1 stands for people who are unsatisfied, 5 stands for neutral satisfaction level, where as 10 reflects for highly satisfied person.
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25
by the services In this question there are only 3 people out of 100, who are not satisfied with the services provided by the Pantaloon, 32 people has the low or neutral level of satisfaction where as 47 people has high level of satisfaction and 18 people has highest level of satisfaction. By that, I come to know that the level of satisfaction is very high.
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SA IS A T NL VE O C S O E S W HT EB A D T F C IO E L F U T M R IT H R N S
30 No. of Customers 25 25 20 15 10 10 5 0 S eries1 4 2 2A 10 3A 2 4A 6 6 7 4 14 15 13
1A 4
5A 4
6A 14
7A 7
8A 25
9A 15
10A 13
In this question there are only 4 people out of 100, who are not satisfied with the brands available in the Pantaloon, 22 people has the low or neutral level of satisfaction where as 61 people has high level of satisfaction and 13 people has highest level of satisfaction. By that I come to know that the level of satisfaction by the brands available is very high. The people who are unsatisfied or with lower level of satisfaction wants more brands in the store, like, Allen Solly, Black Berry, Code, Biba, Ritu Wears, Spykar in ladies section and Code and Kappa in men section
ARE
YOU
SATISFIED
WITH
THE
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In this question there are only 7 people out of 100, who are not satisfied with the variety available in each brand, 28 people has the low or neutral level of satisfaction where as 62 people has high level of satisfaction and 3 people has highest level of satisfaction. By that I come to know that the level of satisfaction is high
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NO 14%
YES 86%
To convert 14% people into Yes category, store should include more variety in each brand with low price.
OF
QUALITY,
VARIETY
&
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MEN 35%
WOMEN 42%
In response of this question I got 42 people out of 100 prefer or like Women section, 35 people like men section, 14 people like kids section and 9 people like general merchandise. So the most preferred section by customers is Women section.
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FREQUENCY OF SHOPING
58% 60 50 40 NO. OF 30 RESPONDENT 20 10 0 Daily Weekly Monthly Biannually 6% 7% Series1 29%
FREQUENCY
In response of this question I got 6 people out of 100 shop daily from the stores, 29 people shop weekly, 58 people shop once in a month and 7 people shop biannually. So by this question I got maximum number of people shop once in a month.
ARE
YOU
SATISFIED RUNNING
WITH IN
THE THE
SCHEMES
PANTALOONS?
I have taken this question to know the satisfaction level of customers by the schemes running in the store. This question has two options, Yes/No.
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NO
30
YES
70
10
20
30
40
50
60
70
80
NO OF RESPONDENT
Series1
In response of this question I got that there 30 people out of 100, who are not satisfied with schemes running in the store, but ratio of satisfied people is always high in Pantaloons. 70% people are generally satisfied with the schemes running in the Pantaloon.
GENERALLY,
YOU
SPEND
IN
SHOPPING AT A TIME?
I have taken this question to know the lump-sum amount a customer can spend at a time. This question has four options, 0-1000, 1000-5000, 5000-10000, 10000+.
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SPENDING LEVEL
68 70 60 50 40 NO. OF RESPONDENT 30 20 10 0 0-1000 1000-5000 5000-10000
14
15 3
10000+
AMOUNT SPEND
In response of this question I found there are 14 people who spend up to 1000 Rs at a time, 68 people spend up to 5000, 15 people spend up to 10000 and 3 people spend more than 10000 at a time.
I have taken this question to know the customers preference in respect of Cloth, Accessories, Jewellery and Cosmetic. This question has four options, Cloth, Accessories, Jewellery and Cosmetic
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71
23 5 8 S1
NO. OF RESPONDENT
CLOTH
ACCESSORIES
JEWELLERY
COSMETIC
SECTION
In response of this question, I got that 71 out of 100 prefer to buy clothes, 23 prefer accessories, 5 prefer jewellery and 8 prefer cosmetic. So the conclusion from this question is that most people like buy apparels first then accessories, jewellery and cosmetic.
WHAT PLACES?
DRIVES
YOU
TO
OTHER
I have taken this question to know the reasons, which drives customers to other places. This question has six options, Ambience, product, price, service, quality, and any other.
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REASON OF DIVERSION
AMBIENCE 16%
PRODUCT 23%
In response of this question I got that 16% prefer other outlets because of Ambience, 23% because of Product & variety , 22% because of Price, 12% because of services, 20% because of Quality and 7% because of any other reasons.
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In response of this question I got 44 out of 100 prefer Shoppers Stop, 39 people prefer Life Style and 17 people prefer Globus.
WHAT THINGS YOU WOULD LIKE TO SEE IN PANTALOONS SO THAT YOU CAN SHOP MORE FROM HERE?
I have taken this question to know that what customers want to see in respect of improvement. This question has four options, Quality, Discount, Variety, Brand.
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NO. OF RESPONDENT
50 45 40 35 30 25 20 15 10 5 0
45
28 15
12
QUALITY
DISCOUNT SOURCE
VARIETY
BRAND
In response of this question I got that 45% people like cash discount and they will shop more if they get discount, 28% people want to see more variety in Pantaloons, 15% people want more brand and 12% people want better quality.
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CONCLUSION
Pantaloon Retail India Ltd has strong goodwill in Retail Industry in respect of quality.
Customers mostly prefer those outlets, which provide them better services, price & product. Customers want improvement in Pantaloons in respect of services, variety, and brands.
The customers generally prefer cash discount. They also want more variety in the store.
Customers go to other places because of Ambience, product, price, so Pantaloon should also do some work on these.
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QUESTIONNAIRE
1. NAME: 2. AGE: GENDER: Male/Female
3. Are you a Green Card member? Yes No 4. Which type of clothes you like most? Casual Formal Ethnic
QUESTION NO. 5 TO 7 ARE DEFINING THE LEVEL OF SATISFACTION (1- Unsatisfied; 5- Average; 10- Highly Satisfied)
5. Are you satisfied with the services provided by the Pantaloon 1 2 3 4 5 6 7 8 9 10
8. You like any specific brand , and which brand 9. Are you satisfied with the price. Yes No
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10. Which section you like most in respect of quality, variety and price. Men General merchandise Women Kids
12. Are you satisfied with the schemes running in the Pantaloon? Yes No
13. Generally you spend in shopping at a time. 0-1000 10000+ 1000-5000 5000-10000
14. Generally you spend more for Clothes Cosmetic 15. Service Quality 16. Globus 17. What things you would like to see in Pantaloons, so that you can shop more from here. Quality Brand
BIRLA INSTITUTE OF TECHNOLOGY & SCIENTIFIC RESEARCH
Accessories
Jewellery
What drives you to other places Ambience Product Any Other Price
Beside Pantaloon, which outlet you visit most. Life style Shoppers Stop
Discount
Variety
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======
COMPANY MILESTONE
Major Milestones
1987 1991 1992 1994 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. The Pantaloon Shoppe exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. John Miller Formal shirt brand launched. Pantaloons Indias family store launched in Kolkata. Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. Food Bazaar, the supermarket chain is launched. Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first seamless mall is launched in Bangalore. Fashion Station the popular fashion chain is launched
aLL a little larger - exclusive stores for plus-size individuals is launched 2006 Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali.
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