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By
VISHAL THAKUR
ROLL NO.-HRD1512463
(2014-2016)
AT
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A study on customer loyalty program 2016
DECLARATION
I, hereby declare that this summer internship project on ‘‘a study on customer
loyalty program of pantaloons at S.B.Road’’ is the record of authentic work
carried out by me during academic year 2015-2017.
This is to declare that all my work indulged in the completion of this Project
Report is a profound and honest work of mine and it does not form a part of any
other work submitted to any other institution or university.
Place: Pune
Vishal Thakur
HRD1512463
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A study on customer loyalty program 2016
ACKNOWLEDGEMENT
First and foremost, I would like to thank Aditya Birla Fashion & Retail Ltd.
for giving me an opportunity to do my internship in their esteemed organization.
I express my sincere gratitude towards MR. SHOAIB SHAIKH(Department
Manager)
This internship would not have been completed without the support of Dr. (Col)
A. Balasubramaniam, President of Sri Balaji Society. I would also like to
thank our Director Dr.G.Gopalakrishna for his guidance and unflinching
support throughout the phases of my Internship.
Last but not the least, my endless appreciation goes to my family who has stood
by my side and given me moral support whenever I was low and boosted my
will power.
Vishal Thakur
HRD1512463
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A study on customer loyalty program 2016
EXECUTIVE SUMMARY
This project report is carried on the topic “Customer Loyalty Program of pantaloons” where
in how frequently a loyal customers shop at pantaloons and how much they have awareness
about green card and what is perception and benefits or significance of green card. And is the
customer satisfies or not.
“Customer Loyalty Program” focuses more those customer who shop and those have green
card of pantaloons. I did a research using descriptive research design for analyzing and
studying impact of customer loyalty program of pantaloons. Target population is those have
payback green card of pantaloons, from different economical backgrounds was interviewed.
And here the sample size is 82 samples and it is limited to the pantaloons store, senapati
bapat road, pune. I used convenience sampling technique and data collected form of
structured questionnaire.
Through structured questionnaire. I find out most of the customer shop at pantaloons
occasionally, those customer have payback green card they aware of it, and customers were
agree on they shop at pantaloons because they have payback green card and they thought
customer loyalty program of pantaloons was beneficial for them and they satisfy.
From the above study, I give suggestion about customer loyalty program they should be
improved level of Instant discount, earn payback points at pantaloons and other services like
birthday discount. Employee should be properly trained and educate about payback green
card that will be helpful for customer as well as store also. And level of sale preview and use
of promotional techniques should be improved that will be helpful for increases customer
frequency of visit the store.
In this study it is clear that customer loyalty program can accelerate the frequency of
customer visit and various customers are attracted towards the services provided by customer
loyalty program that implies in to customer retention and increase the volume of purchase. It
plays a very important role in customer relationship management.
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INTRODUTION
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its
GDP. The Indian retail market is established to be US$ 500 billion and one of the top five
markets in the world by economic value. India is one of the fastest growing retail markets in
the world, with 1.2 billion people.
As of 2014, India’s retailing industry was essentially owner manned small shops. In 2010,
longer format convenience stores and supermarkets accounted for about 4 percent of the
industry, and these were present only in large urban centres. India’s retail and logistic
industry employs about 40 million Indian’s (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand
retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or
any retail outlets. Even single brand retail was limited to 51% ownership and bureaucratic
process.
In November 2011, India’s central government announced retail for both multi brand stores
and single brand stores. These market reforms paved the way for retail innovation and
competition with multi brand retails such as wall-mart, Carrefour and tesco, as well single
brand majors such as IKEA, Nike and apple. The announcement sparked intense activism,
both in opposition and in support of the reforms. In December 2011, under pressure from the
opposition and Indian government placed the retail reforms on hold till it reaches a
consensus.
In January 2012, India approved reforms for single-brand stores welcoming anyone in the
world to innovative in Indian retail market with 100% ownership, but imposed the
requirement that the single brand retailer source 30 percent of its goods from India. Indian
government continues the hold on retail reforms for multi-brand stores.
On September 2012, the government of India announced the opening of FDI in multi-brand
retail, subject to approvals by individual states. This decision was welcomed by economists
and markets, but caused protest and an upheaval in India’s central government’s political
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coalition structure. On 20 September 2012, the government of India formally notified the FDI
reforms for single and multi-brand retail, thereby making it effective under Indian law.
Food and beverage retail backed by huge potential and changing lifestyle, the food and
beverage retail market is growing at a robust 30-35 per cent year.
E-commerce or E-tailing the next big revolution with the advent of e-commerce in retail
industry, retail stores are facing stiff completion from e-stores.the rising demand for e-
shopping has lead to new debate cropping up in the world.
On 7 December 2012, the federal government of India allowed 51% FDI in multi-brand retail
in India.
India is the 5th largest market in the world. The country ranks fourth among the surveyed 30
countries in terms of global retail development. The market size of India retail industry is
about US$ 500 million (source: IBEF) and is expected to grow at the rate of 15-20% p.a. the
retail industry is expected to increase to US$ 750-850 bn by 2015 (according to a report by
Deloitte). Retailing has played a major role the world over in increasing productivity across a
wide range of consumer goods and services. In the developed countries, the organised retail
industry accounts for almost 80% of the total retail trade. In contrast, in India organised retail
trade accounts for merely 8-10% of the retail trade. This highlights a lot of scope for further
penetration of organised retail in India.
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Pantaloons, one of the fastest growing ,premium lifestyle apparel companies in India, is
constantly innovating designs, concepts and products by infusing the latest trends in fashion
and clothing styles.
Pantaloons is one of the fastest growing lifestyle apparel retail destination in India constantly
innovating designs, concepts and products by infusing the latest trends in fashion and
clothing styles. A chain of stores for every Indian, pantaloons has a repertoire of lifestyle
brand to cater to every consumer needs across multiple occasions. The warm and
personalized service offered by every store truly brings out the unique value proposition of
the format.
Pantaloons were launched amidst much fanfare in Gariahat, Kolkata in 1997. Over the years,
the brand has undergone several transitions therefore re-inventing itself to bring forth
compelling trends and styles for men, women and kids. It started as a discount format,
moving to a family concept store and finally evolved into a fashion destination with a sharp
focus on bringing the latest in fashion.
Pantaloons retails over 200 brands which comprise a mix of exclusive brands, licensed
brands, international brands and more in apparel as well as accessories leaving the consumer
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spoilt for choices. The greatest asset of pantaloons is our exclusive brands that keep
customers coming back to our stores. What sets these brands apart are that each of the
designs is crafted keeping the consumers fashion sensibilities and fashion needs in mind.
With a chain of 146 fashion stores across 49 cities and towns with 5300 valuable employees,
pantaloons are constantly extending its footprint into the rest of modern India. Its spans a
retail space of 1.7 million square feet which is amongst the largest in India.
Voted as India’s most trusted apparel retail brand in the prestigious brand equity survey 2014,
pantaloons continues to nurture trust and confidence.
Pantaloons is now an integral part of the prestigious Aditya Birla Group, a USD 40 billion
Indian multinational operating in 36 countries across the global with over 120000 employees.
East zone
West zone
North zone
South zone
Each zone has their zone office, which takes care of the entire pantaloons store in the
respective zone.
3. Season mall
5. Baner
6. SGS mall
7.
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Pune ICC Tech Park:
A pantaloon which was previously controlled by the future group has now been takes over by
Aditya Birla Nuvo Limited (ABNL). ABNL is a part of the prestigious Aditya Birla Group, a
$40 billion Indian multinational, operating in 36 countries across the global with over 136000
employees.
The Aditya Birla Group ranks high in the league of fortune 500 corporations of the world
with a strong mix of talented and capable personnel comprising 42 different nationalities,
who are credited with anchoring the organization and scripting one brilliant success story
after another.
With all these advancements, a pantaloon is one of the fastest growing apparel companies and
is poised to grow bigger and better.
The pantaloons green card, which is a unique loyalty program, has been designed exclusively
for pantaloons loyal customers to enhance customer experience. Presently offered to over 3.8
million members, the program entitles member to discounts, points and special privilege at all
pantaloons stores.
Customer will earn 1 payback point on every Rs.100 spent and sometimes its change
different offer to offer payback members will also get to enjoy exclusive privileges at each of
the pantaloons stores.
The card has 4 tires depending on the last 12 months of shopping. The four tires are 1 star,
3star, 5star and 7star. Shop and your card upgrades while privileges and discount increases
simultaneously.
The benefits covered under payback green card include discounts, 1 payback point earn per
Rs.100, earn payback points while shopping with others payback partners, redeem payback
points across brands, complimentary parking, complimentary home drop of altered apparel,
relaxed exchange policy, exclusive sale preview, exclusive billing counters.
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Brand Factory
Central
Ezone
Home Town
Pantaloons
Univer Cell
Food Hall
Figure No. 4
(Source: www.pantaloons.com )
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The program has four tires- 1 star, 3 star, 5 star, and 7 star. Tire assignment depends on the
preceding 12 months shopping at pantaloons.
The preceding 12 months shopping is taken into account to upgrade. The table below
illustrates the same.
Table NO. 1
(Source: www.pantaloons.com )
From the day of tier assignment one need to maintain a minimum shopping account for the
next 12 months. This account varies from the tiers to tiers and is as follows.
Table No. 2
(Source: www.pantaloons.com )
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Customer loyalty program at pantaloons are aimed of increasing customer loyalty and
retaining the customer. For any loyalty programme to be successful it is necessary to assess
the effectiveness of the programme periodically. On the basis of finding necessary
modification are possible in the programme.
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1.4 OBJECTIVES
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1.5 LITRATURE REVIEW
Loyalty programs attempt to reward customers (and business) for sustaining such a
relationship by providing clear incentives for patronage. In fact, successful loyalty programs
can even accelerate the frequency of customer visits and volume of purchases, strengthening
the connection.
Sharp, Byron and Anne sharp. (1997). In their paper titled “Loyalty programs and their
impact on repeat purchase loyalty patterns”.they said currently popular marketing tools for
developing relationship, stimulating product usage, and retaining customers, loyalty programs
can take different forms, but one of the most common involves card-based programs that
enable clients to become members of the program and requires them to self-identify at every
purchase occasion.1
Boltan, Ruth N., P.K. Kannan and M.D Bramlett. (2000). In their titled “Implications of
loyalty program membership and services experiences for customer retention and value.”
They said although loyalty program have attention prominent positions, empirical evidence
about the managerial question of interest, that is the strength and direction of their effects on
customer behaviour, remain limited and contradictory. Loyalty program positively influence
company choice and in turn, transaction values and volumes, resistance to price sensitivity
and retention rates.2
Michael Lewis (2004). In his titled “The influence of loyalty programs and short-term
promotions on customer retention” they said despite the proliferation of loyalty programs in a
wide range of categories, there is little empirical research the focuses on the measurement of
such program. The key to measuring the influence of loyalty programs is that they operate as
dynamic incentive schemes by providing benefits based on cumulative purchasing over time.
As such, loyalty programs encourage consumers to shift from myopic or single period
decision making to dynamic or multiple period decisions making. In this study, the author
models customer response to loyalty program under the assumption that purchases represent
the sequential choices of customers who are solving a dynamic optimization problem.
Through simulation and policy experiments, it is possible to evaluate and compare the long-
term effects of the loyalty program and other marketing instruments on customer retention.3
Yuping Liu (2007). In his titled “The long-term impact of loyalty programs on consumer
purchase behaviour and loyalty”. He said despite the prevalent use of loyalty programs, there
is limited evidence on the long term effects of such programs, and their effectiveness is not
well established. Consumers whose initial patronage levels were low or moderate gradually
purchased more and become more loyal to the firm into other business areas.4
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Singh Roopa, Khan Imran Akhtar (2012). In their titled “An approach to increase customer
retention and loyalty in B2C world.” They said customers are always been important for the
business. With the high rate of competition in every market, it is critical to retain the
customer / loyal customers. The purpose of the paper is to highlight how short term actions
with bit compromise with the profit will turn into long term customer loyalty and hence long
term benefit. After analyze the importance of benefits, we will understand the approach of
how to increase customer retention and customer loyalty towards business.5
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CHAPTER NO.2
REASARCH METHODOLOGY
A research design is logical & systematic plan prepared for directing a research study. It is
the program that guides the investigator in the process of collecting, analyzing& interpreting
observations.
Here, descriptive research design is used for analyzing and studying impact of visual
merchandising on customer satisfaction. It is very simple & more specific than explanatory
study.
The descriptive study is a fact finding investigation with adequate interpretation. The
descriptive study aims at identifying the various characteristics of a problem under study. It
reveals potential relationships between variables and also setting the stage for further
investigation later.
Target population is those have payback green card of pantaloons, Senapati Bapat Road,
Pune.
Here the sample size is 82 samples & it is limited to the pantaloons store, Senapati Bapat
Road, Pune.
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2.3 Data Sources:-
Primary Data:-
Primary data were collected on original information gathered for a specific purpose either
through questionnaire.
The present study has used survey method for collecting the primary data by directly with
questionnaire.
Secondary Data:-
Secondary data is collected from already existing sources in various organization broachers &
records.
Secondary data for the study were collected from the magazines, websites & other previous
studies.
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CHAPTER NO.3
Total 82 100
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Table no. 4 Age in years
Chart No. 1
50
Axis Title
40
30
20 13
10 4
1
0
Less than 20 21-30 31-40 More than 40
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Table No. 5 Education
Chart No. 2
Title: Education
50 46
45
40
35
Axis Title
30 23
25
20
15
10 7
3 3
5 0 0
0
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Table No. 6 Occupation
Chart No. 3
Title: Occupation
60 54
50
40
Axis Title
30 27
20
10
1 0 0
0
Student Employed Unemployed House work Retired
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Table No. 7 Monthly Income
Chart No. 4
20 18
15 12
8 9
10
5
0
Less than 15k 16-25k 26-35 36-46 More than 46k
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Table No. 8How frequently do you shop at pantaloons?
Chart No. 5
40
27
Axis Title
30
20
9
10
0
0
Daily Weekly Monthly Occasionally
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Table No. 9 Do you aware about payback green card?
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Table No. 10 what is the first thing that strikes your mind about payback green card?
Chart No. 6
40 31
30 20 21
20 10 11 13
4 7
10
0
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(Source: Field Survey)
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Table No. 13 I shop at pantaloons because it offers earn and redeem payback points across
brands
Chart No. 9
40
30
20 16
10 5
1
0
Strongly Agree Agree Disagree Strongly Disagree
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Table No. 15 I shop at pantaloons because it offers relaxed exchange policy
Chart No. 11
50
40
Axis Title
30
20
11 10
10 4
0
Strongly Agree Agree Disagree Strongly Disagree
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Table No. 16 I shop at pantaloons because it offers exclusive sale preview
Chart No. 12
50
Axis Title
40
30
20 17
10 5
1
0
Strongly Agree Agree Disagree Strongly Disagree
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Table No. 17 I shop at pantaloons because it offers birthday discount
Chart No. 13
25
19
20
15 12
10 7
5
0
Strongly Agree Agree Disagree Strongly Disagree
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Table No. 18 I shop at pantaloons because it offers additional offers on payback green card
Chart No. 14
50
Axis Title
40
30
20
11
8
10
2
0
Strongly Agree Agree Disagree Strongly Disagree
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Table No. 19 I shop at pantaloons because I have payback green card
Chart No. 15
40
32
Axis Title
30
20
10
2 0
0
Strongly Agree Agree Disagree Strongly Disagree
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Table No. 20 Which part of payback green card do you think needs the most improvement?
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Chart No. 16
26
30
20 15 13 11 13
9 10
10 4
0
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Table No. 24 Relaxed exchange policy
Chart No. 20
20
15
11
9
10
5 3
0
Excellent Very Good Good Average Poor
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Table No. 25 Exclusive sale preview
Chart No. 21
25
Axis Title
20
15
11
10
4
5 2
0
Excellent Very Good Good Average Poor
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Table No. 26 Birthday discount
Chart No. 22
25 23
20
Axis Title
15 12
9 10
10
0
Excellent Very Good Good Average Poor
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Table No. 27 Additional offers on payback green card
Chart No. 23
20
15
9 10
10
5 3
0
Excellent Very Good Good Average Poor
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CHAPTER NO.4
FINDINGS
1. Most of the customers are Graduate and their age is between the 21-30 year.
2. Most of the customers are employed and their monthly income is less than 15k.
5. Earn payback points at pantaloons is the first thing strikes in their mind about payback
green card.
6. Earn payback points service is mostly used by the customers of payback green card at
pantaloons.
7. Most of the people were agree on they shop at pantaloons because payback green card
services offer by pantaloons.
8. Customer thought instant discount part of payback green card services need to most
improvement.
9. Most of the customers are rate very good to complimentary parking and exclusive sale
preview.
10. Most of the customers are rate good to instant discount, earn and redeem payback points
across brands, relaxed exchange policy, birthday discount and additional offers on payback
green card.
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CHAPTER NO.05
SUGGESTIONS
3. Employee should be properly educated about payback green card that will be helpful for
customer as well as store also. (Refer Field Survey)
4. Level of sale preview and use of promotional techniques should be improved that will be
helpful for increases customers frequency of visit the store. (Refer table no. 20 and Field
Survey)
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CONCLUSION
Loyalty programs in retail now a day’s play a very important role. This directly helps to be in
a sustainable position in current retail competition. In this study it is clear that customer
loyalty program can accelerate the frequency of customer visits and various customer are
attracted towards the services provided by customer loyalty program that implies in to
customer retention and increase the volume of purchase. It plays a very important role in
customer relationship management.
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06. BIBLOGRAPHY
Text Book::
2. Research Methodology, Methods and Techniques (Second revised edition) C.R. Kothari
New Age International Publishers
Website:
1. www.pantaloons.com
2. https://www.payback.in/pb/redeemPartneroutlet?execution=e2s1
Research paper:
1. Sharp, Byron and Anne sharp. (1997). In their paper titled “Loyalty programs and their
impact on repeat purchase loyalty patterns”. International journal of research in
marketing.p14, 473-8
2. Boltan, Ruth N., P.K. Kannan and M.D Bramlett. (2000). In their paper titled
“Implications of loyalty program membership and services experiences for customer
retention and value.” Journal of the Academy of Marketing Science 28 (1): 95-108.
3. Michael lewis (august 2004). In their titled “The influence of loyalty programs and short-
term promotions on customer retention” Journal of marketing research vol. XLI (August
2004), 281-292
4. Yuping Liu (October 2007). In his titled “The long-term impact of loyalty programs on
consumer purchase behaviour and loyalty”. Journal of marketing Vol. 71
5. singh roopa, khan imran akhtar (june 2012). In their titled “An approach to increase
customer retention and loyalty in B2C world”. International journal of scientific and research
publication, volume 2. Issue 6 1ISSN 2250-3153
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07. ANNEXURE
Questionnaire
NAME:
Retired
Yes No
3. What is the first thing that strikes your mind about payback Green card of pantaloons?
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4. Which are the payback Green Card services of pantaloons you use mostly?
6. Which part of payback Green Card do you think needs the most improvement?
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I Instant
discount
II Earn and
redeem
payback points
across brands
III Complimentary
parking
IV Relaxed
exchange
police
V Exclusive sale
preview
VI Birthday
discount
VII Additional
offers on green
card
8. Any suggestion would you like to give about payback Green Card of pantaloons?
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CONCLUSION
Loyalty programs in retail now a day’s play a very important role. This directly helps to be in
a sustainable position in current retail competition. In this study it is clear that customer
loyalty program can accelerate the frequency of customer visits and various customer are
attracted towards the services provided by customer loyalty program that implies in to
customer retention and increase the volume of purchase. It plays a very important role in
customer relationship management.
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