SIP Presentation

Customer Retention and Ways to Improve Loyalty Program in Pantaloons, Sahara Ganj Lucknow

By:Somnath GuptaPGDM 2nd Year

BM-014259

OBJECTIVE

• Study the different process critical to customer service and satisfaction.

• Analyze the awareness level about the Payback Green card loyalty program among the customers.

• Analyze the PBGC card benefits satisfaction level among different age groups.

• Analyze the impact of satisfaction from PBGC benefits on customer’s buying behavior.

About Pantaloons Sahara Ganj Lucknow

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.

The first Pantaloons store was launched amidst much fanfare in Gariahat, Kolkata in 1997.

Pantaloons, the newly acquired business by The Aditya Birla Group. One of India’s leading multinational conglomerates, is a powerhouse of fresh fashion and innovation. While weaving its magic across lifestyle segments. Pantaloons caters to the discerning and trendy consumer.

Pantaloons Sahara Ganj is a stand alone departmental store covering about 18000 sq.feet (approx) situated in one of busiest road of Lucknow catering the needs of people from nearby resedential areas like Hazrat Ganj, Alambagh etc.

Contd …

Pantaloons, previously controlled by the Future Group, has been recently taken over by Aditya Birla Nuvo Limited.

Pantaloons offer multiple accessories and clothing brands across a spectrum of categories for men, women and kids.

Currently we are a chain of 100+ fashion stores across 43 cities.

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.

Pantaloons, Headquartered in Mumbai (Bombay), the company operates over 2.2 million square feet of retail space.

It is one of the few Pantaloons store in Lucknow where people can avail apparels, groceries, cosmetics and consumer durable under one roof.

Recently Pantaloons launches Store

Pantaloons launch its hundred stores in Karol Bagh, Delhi.

Pantaloons launch its third store in Hazratganj, Lucknow.

Pantaloons launch its first store in Muzaffarpur.

Pantaloons Recently plans to open first store in Agra.

Pantaloons brands

NON Pantaloons Brands

Customer Retaintion & 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.

Companies typically have several goals when launching loyalty programs.

Improving knowledge of the customer.

Leveraging that knowledge to increase the sales of undersold and/or highly profitable products/services.

Loyalty program enables a company to gain detailed knowledge about its customer.

Customer Relationship Management at Pantaloons

Want to focus both on acquisition & Retention.

To convert daily footfalls into loyal customers.

Extraordinary service and customer satisfaction.

Increase customer share.

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 lac. across India.

Software used is the ‘Capillary’.

Special Benifits on Enrollment

Parking fee is less on your bill.

Free home drop Facility.

90 days exchange policy.

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.

BENIFITS 3 STAR 5 STAR 7 STARINSTANT 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

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

What customers expect

Contd …

Membership Cards

Greetings on Special Occasion

Gifts

My Works at Pantaloons Fashion & Retail Ltd.

I did try to convince around five hundred customers to achieve the target for green card in weekly basis.

I did the updating of green card of existing customers

I maintained all the registers on customer service desk

I worked as a visual merchandiser

I kept trying to satisfy customer needs.

Making strategies to increase customer entry and as well as store sale.

INTERIOR STORE DESIGN:

Floor, ceiling- Area which attracts more visual attention were reserved for private labels Brands were placed on ‘pay per space scheme’ Use of white & cream color in the ceiling Use of spot light & decorative lighting

Lighting - For interiors and lighting latest technology were used.

Store security - Security were strictly maintained inside the store both with the employees and even with the technology

Graphics and signages - Signage and graphic were used inside the store

Visual Marchandiser works

PROMOTIONAL STANDY

STORE LAYOUT AND DESIGN

STANDY SHOWING FESTIVE OFFER

FLOOR DESCRIPTION WITH MERCHANDISE MIX

GROUND FLOOR Ladies Ethnic, Fashion Jewellery, Fashion Accessories, Sunglasses, Watches, Ladies Night wear, Kids Fashion.

FIRST FLOOR Men's Casual, Men’s Formal Sunglasses, Watches, Men's Accessories, Leather Bag, Ladies Casual, Ladies Formal.

FIXTURES Fixtures are the important part for a retail store to display the merchandise. Many types of fixtures are used in a retail store to maximize the target area, the daily sale rate, and minimize disruptions in merchandise operations.

The fixtures that were used in Pantaloons :

Four way racks

Straight racks

T-stands

Waterfall arm stands

Nested tables

Gondola

THEME BASED, TRADITIONAL, PARALLEL TO SIDE WALK, CLOSED BACK WINDOW USE OF MANNEQUINS, SIGNAGE, PROPS

WINDOW DISPLAY POLICY

WINDOW DISPLAY POLICY

Research MethodologyResearch design - Descriptive study

Data collection - Primary Data/Secondary Data

Sample area - Lucknow

Sample size - 80 customers

Sampling design - Random & Convenience

Research instrument - Questionnaire

Analytical tool - SPSS

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.

SAMPLING AREA

This study was undertaken at pantaloons Sahara Ganj Lucknow.

PERIOD OF STUDY

The study was undertaken between May 2015 and June2015.

DATA COLLECTION DESIGN

A marketing researcher has to make a plan for collecting data which may be primary data, secondary data or both.

What comes to your mind when you think Pantaloons?

Interpretation:

From the above graph we come to know that 30.37% of the customers think of collection 30.38% of the customers are saying Discount and offers and rest customers are saying come for Product and quality.

8; 10%

30; 38%

30; 38%

12; 15%

ProductCollectionsDiscount & OffersQuality

How would you rate customer loyalty program?

Interpretation:

From the above table we conclude that 30.37% of the customers are rate very good, 16.16% of the customers are rate Excellent and 7.9% are rate average about customer loyalty program provided by pantaloons.

14. 18%

30. 38%

27. 34%

7. 9%2. 3%

ExcellentVery GoodGoodAveragePoor

How would you rate our store location?

Interpretation:

From the above table we conclude that 29.36% of the customers are rate Excellent, 28.35% customers are rate Very good and 18.22% are rate good about Pantaloons Store location.

29. 36%

28. 35%

18. 23%

3. 4%2. 3%

ExcellentVery GoodGoodAveragePoor

Finding & Analysis

Check how we rate the loyalty of the customer?Therefore, H1- µ=1

µ≠1

Non Parametric TestCrosstab between gender and availability

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

Finding & 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.

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.

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. If we talk about fashion retail sector it is very common to see shortage of cash counter over there which directly or indirectly increases the shopping time of the customers. Even some time customers even leave without purchasing anything from the store because of it.