Project Report

Project Report

On

“Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow”

For the partial Fulfillment of the Award of the Post GraduationFor the partial Fulfillment of the Award of the Post Graduation

Diploma in Management Diploma in Management

Session 2014-16

Faculty Guide: Industry Guide:

Dr. Vishal Gupta Mr. Vibhor Saxena

Submitted By:

Somnath Gupta (BM-014259)

DECLARATION

Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow is a factual report of my own project work undertaken towards partial fulfillment of the DEGREE OF MANAGEMENT. This report has been submitted to the Department of Marketing of IMS, Ghaziabad is an authentic record of my own work carried out during a period from 4 th

MAY 2015 to 30th JUNE 2015 under the supervision of our Industrial Guide Mr. Vibhor Saxena (CSD Executive).

The facts presented here are correct and true to best of my knowledge and belief.

Somnath Gupta

Date:

PREFACE

The project report is a part of Post Graduate Diploma in Management in Institute of Management Studies, Ghaziabad. The PGDM program provides Summer Internship Projects under the guidance of industries. The projects are assigned and completed as per the industry requirements.

The organization in which I have done my Summer Internship is PANTALOONS FASHION & RETAIL LIMITED, SAHARA GANJ, LUCKNOW, and Uttar Pradesh. The project title is “Customer Retention and ways to improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow” The basic purpose of this report is to gain information about Customer Retention and ways to improve Loyalty Program in Pantaloons.

A sample has been taken of the Customer of the Pantaloons a survey is has been carried out on them. Analytical approach has been used to write this report and both primary as well as secondary sources of data collection have been used to collect the required information to conduct the study.

After reading this report, one will get an insight about the Customer Retention and ways to improve Loyalty Program in Pantaloons.

ACKNOWLEDGEMENT

I am indebted to Mr. Ashish Soni, Store Manager of Pantaloons Fashion & Retail Ltd.

Lucknow for giving me an opportunity to work as a Management Trainee in this esteemed

organization. His knowledge and experience was a great motivating factor. This effort would not

have been possible without his able, efficient, valuable and timely advice, insights and thoughts.

I am very much thankful to sir for his valuable guidance and support.

I take this opportunity to express my heartfelt gratitude to my faculty guide Dr. Vishal Gupta,

Faculty of Institute of Management Studies (IMS) Ghaziabad. I am thankful to sir for his

valuable support and guidance throughout the project.

I am also thankful to Mr. Vibhor Saxena, CSD Executive, Pantaloons Fashion & Retail Ltd.

for his assistance and support, I am equally grateful to each and every member of Pantaloons

Fashion & Retail Ltd, Lucknow for their whole-hearted co-operation in completing this project

in stipulated time.

I extend my sincere thanks to the all respondent who serve me there prestigious time me for my

project.

Last but not the least, I would like to thank my family members and friends whose unbounded

support facilitated the successful completion of the project.

Somnath Gupta

EXECUTIVE SYNOPSIS

Consumer retention is the key success factor for any retailer in current competitive market. With a view to comprehend the competitive market scenario , the most upcoming suburb after the launch of many new retail outlets and malls, an effort was made to ascertain and analyze customer views and preferences for the same through process of Brand Recall.

Also, a detailed study was made to understand the performance pattern of major competitors of Pantaloon shop. In doing so, it was possible to assess the competition in the market, hence enabling us to position ourselves more effectively and strategize on a long term basis. During the course of this project, I was also fortunate enough to be able to study the promotional campaigns carried out in store. This report contains the findings arrived after detailed analysis of the data received through observations made at the competitor’s stores and personal interviews conducted with the customers at various department stores.

Objectives of the Study

To determine a competitive analysis based on the customer perception.

Finding what the customer actually looks for in a store especially market. Study of current consumer tastes & attitudes towards a store.

The scope of project was limited to find out major competitors market share and consumer behavior in selected region and understand various factors affecting the customer choice while shopping. Pantaloons Fashion & Retail Limited is India’s leading premium Lifestyle Company. With innovative designs, concepts and products, the company brings the latest trends in fashion and clothing styles to the apparel market.

Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya Birla Nuvo Limited, a US $4 billion premium diversified conglomerate and India's largest manufacturer of linen fabric. Pantaloons offer multiple accessories and clothing brands across a spectrum of categories for men, women and kids. The company provides an incredible and complete one-stop shopping experience to its buyers through its vast collection of more than 100 prestigious brands for the discerning fashionista. Pantaloons, Headquartered in Mumbai (Bombay), the company operates over 2.2 million square feet of retail space with a presence across 47 cities through 100 aesthetically designed large format stores and 26 factory outlets, displays a range of classy and trendy merchandise that truly lives up to Pantaloons’ maxim of ‘fresh fashion’. A typical Pantaloons store comprises a brand portfolio that runs across a gamut of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for men, women and kids, complemented by an exhaustive range of accessories. The variety of products and brands has helped propel Pantaloons to become one of the best clothing brands in India.

Table of Content

S. No. Particular Page No.1. Introduction to retail 8-102. Loyalty Program 11-133. History 15-214. CRM 22-285. Literature Review 30-316. Research Methodology &

Sample techniques32-36

7. Analysis 37-498. Appendix 50-519. Recommendations &

Conclusion52-53

10. Bibliography 54-55

CHAPTER 1

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.

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 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. 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 enrolls. 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 behavior 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:

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 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.

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.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.

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. 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.

CHAPTER 2

Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

Pantaloon Retail (India) Limited (PRIL) is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

PRIL is India’s leading retailer that operates multiple retail formats catering to the needs of both the value and lifestyle segment of the Indian consumer market. The company which started its operations from Kolkata is now headquartered in Mumbai (Bombay), India’s commercial capital.

Pantaloons Fashion & Retail Ltd.

Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya Birla Nuvo Limited, a US $4 billion premium diversified conglomerate and India's largest manufacturer of linen fabric. Pantaloons offer multiple accessories and clothing brands across a spectrum of categories for men, women and kids. The company provides an incredible and complete one-stop shopping experience to its buyers through its vast collection of more than 100 prestigious brands for the discerning fashionista. Pantaloons, Headquartered in Mumbai (Bombay), the company operates over 2.2 million square feet of retail space with a presence across 47 cities through 100 aesthetically designed large format stores and 26 factory outlets, displays a range of classy and trendy merchandise that truly lives up to Pantaloons’ maxim of ‘fresh fashion’. A typical Pantaloons store comprises a brand portfolio that runs across a gamut of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for men, women and kids, complemented by an exhaustive range of accessories. The variety of products and brands has helped propel Pantaloons to become one of the best clothing brands in India.

Spotlighting today's buoyant youth, Pantaloons, India's premium lifestyle apparel company offers chic and trendy fashion to meet the youth's ever-changing needs. A pantaloon reflects the ideology of keeping alive the 'newness factor' through fashion apparel and accessories that are visually appealing and fashionably upbeat.

The first Pantaloons store was launched amidst much fanfare in Gariahat, Kolkata in 1997. Over the years, the brand has undergone an evolution process to bring to life compelling trends and styles catering to every fashion needs across women, men and kids. Currently we are a chain of 100+ fashion stores across 43 cities. Since its inception, Pantaloons progressed from retailing just a mix of brands to its very own popular private labels as well, designed by the in-house Design Studio. With a sharp focus on bringing the latest in fashion, the Design Studio combines its prowess in design and aesthetics to present styles that keep the consumer fashionably dressed each season. Initially positioned as a store catering to the fashion needs of the entire family, Pantaloons has transitioned to a fashion and lifestyle brand with an emphasis on youth and a focus on designs that are inherently in sync with current fashion trends. This compelling combination has helped Pantaloons retain its place on the style radar of every consumer's wardrobe.

A typical Pantaloons store is spread across a sprawling retail space of about 18,000 sq. ft., with a brand portfolio that runs across a wide gamut of styles that spell class. Pantaloons stores have an abundance of choices across categories that range from western to Indian wear, formal to party wear and active wear for men, women and kids. To further add to the customer's innumerable choices that reflect style, attitude, and comfort, Pantaloons has extended its horizons to fashion accessories like fragrances, footwear, handbags, watches, sunglasses and much more.With a vast collection of more than a 100 prestigious brands for the discerning fashionista, Pantaloons offers an incredible and complete one-stop shopping experience to its buyers.

With a chain of 100 fashion stores and 25 factory outlets across 47 cities and towns, Pantaloons is constantly extending its foot-prints into the rest of modern India. Pantaloons which was previously controlled by the Future Group was taken over by Aditya Birla Nuvo Limited ['ABNL'] in July 2012. ABNL is a part of the prestigious Aditya Birla Group, a $40 billion Indian multinational, operating in 36 countries across the globe with over 120,000 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 its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on growth while continuing to create fresh fashion. Pantaloons are recognized by its warm personalized service that completes the core proposition of this trendy chain. With all these advancements, Pantaloons is one of the fastest growing apparel companies. And is poised to grow bigger and better.

Recently Pantaloons launches Store

Pantaloons launch its hundred stores in Karol Bagh, Delhi. Pantaloons launch its third store in Hazratganj, Lucknow.

Chief Executive Officer

Mr. Shital Mehta, has a Bachelor’s degree in Engineering (Electronics & Communication) from D.D.I.J. (Gujarat University) and a Master’s degree in Business Administration (Marketing) from the S.P. Jain Institute of Management & Research In 1996. He has also pursued advanced management studies from Wharton Business School. Previously, he worked as the Brand Manager with Godrej Foods Limited, during 1996-2000, where he was responsible for Brand Management function for the Fruit-drinks category. He has been Aditya Birla Group for about 14 years. Prior to joining the company, he served as the Chief Operating Officer of the International Brands and Retail division for Madura Fashion and Lifestyle.

CORE VALUES:

Confidence in ourselves. To be a leader, both in thought, business and in innovation. Respect every individual and be humble in our Conduct. Leading to purposeful thinking. To be open and receptive to new ideas, knowledge and information. To build long term relationships. Simplicity and positively in our thought, business and ideas. To be flexible and adaptable, to meet challenges.

Pantaloons in House Brands Rangmanch. Trishaa. Akkriti. Annabelle. Honey. Bare Denim. Candies. RIG. Ajile. Alto Moda. SF Jeans. Chalk. Poppers. Bare Kids. Akkriti. Bare. Ajile. RIG. Lombard. F- Factor. Bare Leisure. JM Sport.

Non Pantaloons Brands

BIBA AND Global Desi Jealous 21 109 F W Allen Solly Louis Philippe Peter England John Miller Lee Cooper Levis

CUSTUMER RELATIONSHIP MANAGEMENT AT PANTALOONS

WHY CRM?

Want to focus both on acquisition & Retention. To convert daily footfalls into loyal customers. Extraordinary service and customer satisfaction. Increase customer share.

CRM AT PANTALOONS:• Pantaloons are following Customer Loyalty Program.• CRM is practiced through the “GREEN CARD” program (GC).• Green Card loyalty program contributes approx. 75% in profitability of Pantaloons across

country.• Pantaloons maintain a customer database of 41 lakh across India.• Software used is the ‘Capillary’.

PANTALOONS GREEN CARD PROGRAM:

INITIAL STEPS:

• Informing the Customer about the loyalty program• To become a green card member

-Filling of form

• While filling the form various customer details like -Name

-Address

-Date of Birth

-Phone No.

-e-mail id

-Income

-Relationship Status etc.

Are collected to form the customer database.

SPECIAL BENEFITS ON ENROLLMENT:

• Parking fee is less on your bill• Free home delivery

• 90 days exchange policyAnd many more initial benefits are provided by pantaloons stores for retaining the customer.

PANTALOONS GREEN CARD PROGRAM“Your Green Card Is Your Passport To A Whole New World Of Exclusive Benefits And Privileges.”

Instant discount* 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:

Also valid at Big Bazaar, HP Petrol pumps, Vodafone, and many more stores.

SHOP WITH GREEN CARD, GET REWARDED INSTANTLY,

1 STAR MEMBERS

Parking Free.

3 STAR MEMBERS

3% discount on every purchase.

5 STAR MEMBERS

An exclusive 5% discount on every purchase.

7 STAR MEMBERS

7% discount on every purchase.

Swipe card at the time of purchase to avail these discounts.

MOST RECENT PURCHASE HELPS TO UPGRADE

PANTALOONS upgrade is not dependent on the date of enrolment or calendar year. They now upgrade on the basis of purchases immediately based on the preceding 12 months from current shopping date.

MEMBERSHIP & 12 MONTH PURCHASE-BASED UPGRADING SYSTEM:

• THREE STAR CARD - Upgrade to a 3 star status by shopping for Rs. 8000/- immediately preceding 12 months of current shopping date.

• FIVE STAR CARD - Upgrade to a 5 star status by shopping for Rs. 20000/- immediately preceding 12 months of current shopping date.

• SEVEN STAR - Upgrade to a 7 star status by shopping for Rs. 40000/- immediately preceding 12 months of current shopping date.

EXCLUSIVE BENEFITS AND PRIVILEGES:

• Instant discounts for every time you shop at Pantaloons.

• Regular updates on themes, collections and promos (beginning & end) via catalogues, SMS and email.

• Special invites to the most happening events.

ADDITIONAL BENEFITS

Green Add on Cards- 1 and 3 star member : 1 add-on card - 5 and 7 star member : 2 add-on cards

Green Days: End Of Season Sale Green Channel: special billing counter during End of Season sale Green Offers Green Service Desk Green Exchange Green drop

7 STAR PRIVILEGES – A BIG “WOW”Exclusive benefits for green card members

EXTRA BENEFITS TO 7 STAR CUSTOMERS:

• Free parking space

• Free gifts

• Stock manager personally deal them

• Promotion is communicated first

BENIFITS 3 STAR 5 STAR 7 STAR

INSTANT DISCOUNT 5% 8% 10%

GREEN OFFERS AND PROMOTION YES YES YES

GREEN SERVICE DESK YES YES YES

GREEN EXCHANGE 60 days 60 days 90 days

COMPLEMENTARY HOME DELIVERY

YES YES YES

COMPLEMENTARY HOME DROP NO YES (EXCEPT SALES PREVIEW)

YES

(AROUND THE YEAR)

FREE PARKING YES YES YES

EXCLUSIVE BILLING COUNTER YES YES YES

CHAPTER 3

LITERATURE REVIEW:

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.

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 behaviour, 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

RESEARCH METHODOLOGY:

i. RESEARCH BACKGROUND:

Research - Quantitative

Research design - Descriptive study

Data collection - Primary Data

Sample area - Lucknow

Sample size - 100 customers

Sampling design - Non-probability technique

Sampling Technique - Convenience sampling

Research approach - Survey method

Research instrument - Questionnaire

Sampling tool - Structured Questionnaire method

Analytical tool - Percentage, cross tabulation

ii. 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.

iii. 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. 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.

3.3RESEARCH 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

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 80 has been chosen.

5.3 SAMPLING AREA

This study was undertaken at pantaloons Sahara Ganj Lucknow.

5.4 PERIOD OF STUDY

The study was undertaken between May 2015 and June2015.

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

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 administer 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.

ANALYSIS

Gender

Gender FREQUENCY PERCENT

Male 57 57.57

Female 43 43.43

TOTAL 100 100.0

57; 57%

43; 43%MaleFemale

Interpretation:

From the above table we conclude that 57.57% customers are Male and 43.43% are Female.

Age Group

Age Group FREQUENCY PERCENT

15-25

25-35

35-45

45-Above

79

18

2

1

79.79

18.18

2.2

1.1

TOTAL 100 100.0

79; 79%

18; 18%

2; 2% 1; 1%

15-2525-3535-4545- Above

Interpretation:

From the above table we conclude that mostly teen agers prefer Pantaloons.

1. What comes to your mind when you think Pantaloons?

Category Frequency PercentageProduct 10 10.10

Collections 38 38.38Discount &offers 37 37.37

Quality 15 15.15Total 100 100.0

10; 10%

38; 38%

37; 37%

15; 15%

ProductCollectionsDiscount & OffersQuality

Interpretation:

From the above graph we come to know that 38.38% of the customers think of collection 37.37% of the customers are saying Discount and offers and rest customers are saying come for Product and quality.

2. How frequently you shop at Pantaloons.

Category Frequency PercentageEvery week 1 1.1

Once in 2 week 8 8.8Once in 3 week 14 14.14Once in a month 77 77.77

Total 100 100.0

Interpretation:

From the above graph we come to know that 77.77% of the customers are Pantaloons comes once in a month and rest comes once in a 3 week, once in a 2 week & once in a 1 week.

1; 1%

8; 8%

14; 14%

77; 77%

Every weekOnce in 2 weekOnce in 3 weekOnce in a month

3. Through which promotion source you come to know about Pantaloons?

Category Frequency PercentageAdvertisement 39 39.39

Electronic media 24 24.24Print media 23 23.23Magazines 14 14.14

Total 100 100.0

39; 39%

24; 24%

23; 23%

14; 14%

AdvertisementElectronic mediaPrint mediaMagazines

Interpretation:

From the above graph we come to know that 39.39% of the customers are Pantaloons come to Know about Advertisement, 24.24% customers know through Electronic Media and rest customer know through Print media and magazines.

4. How would you rate your buying experience?

Category Frequency PercentageExcellent 16 16.16

Very Good 38 38.38Good 39 39.39

Average 6 6.6Poor 1 1.1Total 100 100.0

16; 16%

38; 38%

39; 39%

6; 6%

1; 1%

ExcellentVery GoodGoodAveragePoor

Interpretation:

From the above graph we come to know that 39.39% of the customers are saying good and 38.38% saying Very good. So we should need to improve.

5. After purchase what about warranty & exchange?


Very Good 40 40.40Good 31 31.31


15. 15%

40. 40%

31. 31%

12. 12%

2. 2%


Interpretation:

From the above table we conclude that 40.40% of the customers are rate very good and 12.12% are rate average about after purchase and warranty provided by pantaloons.

6. How would you rate customer service desk?


Very Good 52 52.52Good 21 21.21


16. 16%

52. 52%

21. 21%

10. 10%

1. 1%


Interpretation:

From the above table we conclude that 52.52% of the customers are rate very good and 10.10% are rate average about Our Customer service desk provided by pantaloons.

7. How would you rate customer loyalty program?


Very Good 37 37.37Good 35 35.35


16; 16%

37; 37%

35; 35%

11; 11%

1; 1%


Interpretation:

From the above table we conclude that 37.37% of the customers are rate very good, 16.16% of the customers are rate Excellent and 11.11% are rate average about customer loyalty program provided by pantaloons.

8. How would you rate overall experience?


Very Good 40 40.40Good 29 29.29


18; 18%

40; 40%

29; 29%

12; 12%

1; 1%


Interpretation:

From the above table we conclude that 40.40% of the customers are rate very good and 12.12% are rate average about overall Experience.

9. How would you rate Brand & product availability?


Very Good 45 45.45Good 26 26.26


20; 20%

45; 45%

26; 26%

7; 7%

2; 2%


Interpretation:

From the above table we conclude that 45.45% of the customers are rate very good, 20.20% customers are Excellent and 7.7% are rate average about Pantaloons Brands and Product availability.

10. How would you rate our store location?


Very Good 34 34.34Good 24 24.24


35; 35%

34; 34%

24; 24%

4; 4% 3; 3%


Interpretation:

From the above table we conclude that 35.35% of the customers are rate Excellent, 34.34% customers are rate Very good and 24.24% are rate good about Pantaloons Store location.

Q. Check how we rate the loyalty of the customer?

Therefore, H1- µ=1

µ≠1

One-Sample Statistics

N MeanStd.

DeviationStd. Error

Mean

CLP 80 2.48 .954 .107

One-Sample Test

Test Value = 1

t dfSig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower Upper

CLP 13.824 79 .000 1.475 1.26 1.69

Interpretation:

Since, No of respondents who actually are so, mean is 2.4 & S.D is .954.

Therefore, the range will be 2.48±.954.

T cal = 13.824

Q. Determine whether male & female have same have same buying experience towards Pantaloons?

H0:- No difference in the Mean buying Experience rating among male & female i.e. µ1=µ2.

H1 :- There exists difference in the Mean buying Experience rating male & female i.e. µ1≠µ2.

Group Statistics

Gender N Mean Std. Deviation Std. Error Mean

Experience male 50 2.30 .931 .132

female 30 2.53 .730 .133

Independent Samples Test

Levene's Test for Equality of

Variances t-test for Equality of Means

F Sig. t df

Sig. (2-

tailed)

Mean Differenc

e

Std. Error Differenc

e

95% Confidence Interval of the

Difference

Lower Upper

Buying

Experience

Equal variances assumed

1.930 .169 -1.172 78 .245 -.233 .199 -.630 .163

Equal variances not assumed

-1.245 72.405 .217 -.233 .187 -.607 .140

Interpretation:

Out of 80 respondents, all 80 have responded towards buying behavior of which 50 are males and rest are females

Q. Determine whether there exists a difference in the rating for CSD & Store Location among 80 respondents?

H0 :- No difference in the mean rating i.e. µD = µ0

H1 :- Difference exists mean rating i.e. µD≠0.

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 CSD 2.32 80 .868 .097

Location 2.02 80 .954 .107

Paired Samples Correlations

N Correlation Sig.

Pair 1 CSD & Location 80 .571 .000

Paired Samples Test

Paired Differences

t df

Sig. (2-

tailed)Mean

Std.

Deviation

Std. Error

Mean

95% Confidence Interval

of the Difference

Lower Upper

Pair 1 CSD –

Location.300 .848 .095 .111 .489 3.165 79 .002

Interpretation:

Mean CSD Level for Pantaloons is 2.32 indicating that people weakly rated for CSD for Pantaloons with standard deviation 0.868 giving the range of response towards CSD to lie between 2.32 ± 0.868. Similarly For Lucknow Location.

Tcal= 3.165

d.o.f= n-1=79

P-value=.002 < α

Thus, difference exists in the mean rating towards CSD and Location with mean level weak for CSD & Location.

Non Parametric Test

Crosstab between gender and availability

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender And Availability 80 100.0% 0 .0% 80 100.0%

Gender And Availability Cross tabulation

Count

Availability

TotalExcellent Very Good Good Average Poor

Gender Male 13 21 12 2 2 50

Female 6 15 7 2 0 30

Total 19 36 19 4 2 80

Interpretation:

Out of total 80 respondents who responded, 50 were males and 30 were females. Out of 50 males 13 rated the availability as Excellent, 21 as Very Good, 12 as Good, 2 as Average, and 2 as Poor.

Out of 30 females 6 rated the availability as Excellent, 15 as Very Good, 7 as Good, and 2 as Average.

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 2.021a 4 .732

Likelihood Ratio 2.696 4 .610

Linear-by-Linear Association .004 1 .951

N of Valid Cases 80

Interpretation:

H0 No relationship between Gender & Availability.

H1 Relationship between Gender & Availability.

Chi- Square Cal = 2.021 with df = 4

ρ – value 0.732 > α (0.05), Therefore Accept H0 i.e. there is no relationship between Gender &

Availability.

Descriptive Statistics

Mean Std. Deviation Analysis N

Buying Experience 2.39 .864 80

Exchange 2.52 .927 80

CSD 2.32 .868 80

Experience 2.39 .934 80

Location 2.02 .954 80

CLP 2.48 .954 80

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 2.021a 4 .732

Likelihood Ratio 2.696 4 .610

Linear-by-Linear Association .004 1 .951

Availability 2.18 .938 80

Correlation Matrix

Buying

Experience Exchange CSD Experience Location CLP Availability

Correlation Buying

Experience1.000 .564 .539 .407 .403 .603 .462

Exchange .564 1.000 .666 .551 .500 .630 .431

CSD .539 .666 1.000 .529 .571 .652 .582

Experience .407 .551 .529 1.000 .486 .557 .514

Location .403 .500 .571 .486 1.000 .473 .476

CLP .603 .630 .652 .557 .473 1.000 .514

Availability .462 .431 .582 .514 .476 .514 1.000

Interpretation:

There exists a co-relation between buying experience, overall experience, exchange, Customer Loyalty Program, Customer Service Desk, Location And Availability. So they can be combined to form 1 factor.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .897

Bartlett's Test of Sphericity Approx. Chi-Square 256.568

df 21

Sig. .000

Interpretation:

Since the value of KMO lies between 0.5 and 1 i.e. it value is .897. therefore we can say that factor analysis is appropriate and sample size is adequate.

Bartlett’s Test

H0 = No relationship between the variables

H1 = Relationship exist between the variables.

Since Chi- Square Value is 256.568 and df is 21, ρ value is 0.00< α.

So reject H0 therefore relationship exists between the variables and factor analysis is appropriate.

Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 4.189 59.841 59.841 4.189 59.841 59.841

2 .675 9.647 69.488

3 .560 8.002 77.490

4 .532 7.601 85.092

5 .419 5.990 91.081

6 .350 5.002 96.084

7 .274 3.916 100.000

Extraction Method: Principal Component Analysis.

Interpretation:

Factor one explains 59.841% of the total variance

Therefore total data lost in data reduction techniques 40.16%.

Interpretation:

Since in the above graph the points become stagnant after 1 Point Therefore we will have only one factor.

Component Matrixa

Component

1

CSD .846

CLP .825

Exchange .809

Experience .745

Buying

Experience.733

Availability .730

Location .716

Extraction Method: Principal

Component Analysis.

a. 1 components extracted.

Interpretation:

The matrix indicates only one factor and all the ab0ve variables can be combined to form this factors since the values of the variables is > 0.3.

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 At least one more system require on Customer service desk. Exclusive billing counter Need to aware about green card our employee.

CONCLUSION

I conclude by telling that today many retailers are selling apparels so retaining customer is very difficult and it’s not very easy we have to pull customers for repeated purchase .the loyalty program plays a vital role in pulling customers to purchase apparel.

BIBLIOGRAPHY

http://www.seminarsonly.com/Engineering-Projects/Marketing/Customer-Retention-in-Retail-Sector.php

http://www.ibef.org/industry/retail-india.aspx

http://www.adityabirlanuvo.com/pantaloons.php http://www.pantloons.com

http://www.pantloons.com/

http://www.adityabirlanuvo.com/pantaloons.php

http://www.ibef.org/industry/retail-india.aspx



QUESTIONNAIRE

I Somnath Gupta student of IMS GHAZIABAD Conducting a study on “Customer Retention and Ways to Improve Loyalty Program” as a part of my SUMMER INTERNSHIP PROJECT TRAINING.

Name………………………………………………………………..

Gender: Male Female

Age Group: 15-25 25-35 35-45 45-Above

Contact No (Optional)…………………………………………

1. What comes to your mind when you think Pantaloons?a) Discount & Offers c) Productb) Collections d) Quality

2. How frequently you shop at Pantaloons.a) Every week c) Once in 2 weekb) Once in 3 week d) Once in a month

3. Through which promotion source you come to know about Pantaloons?a) Advertisement c) Print mediab) Electronic media d) Magazines

Excellent Very Good Good Average Poor

4. How would you rate your buying experience?

5. After purchase what about warranty & exchange

6. How would you rate customer service desk?

7. How would you rate customer loyalty program?

8. How would you rate overall experience?

9. How would you rate Brand & product availability?

10. How would you rate our store location?

Project Report

Documents