A PROJECT REPORT

ON

ANALYSIS OF CUSTOMER RELATIONSHIP MANAGEMENT

FOR

SUBMITTED BY

KIRAN G. HEKARE(BATCH 2006-07)

UNDER THE GUIDANCE OFMR. MAHESH GADEKAR

SUBMITTED TOUNIVERSITY OF PUNE

IN PARTIAL FULFILMENT OF TWO YEARS FULL TIME COURSE

MASTERS IN BUSINESS ADMINISTRATION (MBA)

ThroughVISHWKARMA INSTITUTE OF MANAGEMENT

PUNE-48

ACKNOWLEDGEMENT

I wish to express my sincere thanks and gratitude to Mr.

Niraj Sharma, (Business Development Officer, Nashik) and Mr.

Avinash Birari, (Retail outlet Manager) Nashik. For giving me an

opportunity to do my summer training in their esteemed

organization, SUBHIKSHA TRADING SERVICES LTD.

I also thank every single individual in the team who has

helped me in doing this project.

This project could not have been complete without the

guidance of our Director, Dr. Mr. Sharad Joshi and my project

guide, Prof. Mr. Mahesh Gadekar.

Once again I express my gratitude to everybody from

Subhiksha for their continuous support towards my research efforts

and for their kind co-operation.

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr. Kiran G. Hekare is a bonafide student of our institute. He has

successfully carried out his summer project “Customer Relationship Management”

titled at Subhiksha Trading Services Ltd. This is the original study of Mr. Kiran G.

Hekare and important sources of data used by him have been acknowledged in his report .

The report is submitted in partial fulfillment of two years full time course of Masters in

Business Administration 2006-2008 as per rules.

___________________ ________________________

Prof. Mr.Mahesh Gadekar Dr. Sharad L. Joshi

(Project Guide) (Director)

Vishwakarma Institute of Management

Sr.

No.

Topic Page No.

1 Executive Summery 1-42 Introduction 5-93 Company profile 10-204 Objective of Project 21-215 About CRM 22-386 Research Methodology 39-427 Data Collection 43-498 Data Analysis & Interpretation 50-579 Findings 58-5910 Conclusion 60-6011 Limitations 61-6112 Bibliography 62-62

EXECUTIVE SUMMERY

I have carried out my project titled CUSTOMER RELATIONSHIP MANAGEMENT in

Subhiksha Supermarket which is located in Nashik at Trimurti Chouk, The reason behind

choosing this Company is nothing but Subhiksha Supermarket is one of the largest retail

chain in India SUBHIKSHA is the Brand Name and having a very fast growth with

innovative programs. There are lot of Developments and Innovations which I could learn

through the project.

I have chosen this Topic CUSTOMER RELATIONSHIP

MANAGEMENT as today the Scenario has been changed and the Customer is the king

in the Market. So Customer Retention has become far more important than Attracting

new Customers. Today in any of the Sector the Customer Service is the important factor

on which the Customer Relationship Management depends. In CRM various promotion

programs are carried out for the sake of attracting more and more Customers and killing

the Competitors.

I have carried out this Project through handling the task which

involved the CRM and LOYALTY Programs directly interacting with the Customers,

Offering better Service and handling their Complaints and retaining the customers

lifetime value.

Company profile

In the company profile, the history and current scenario of Subhiksha Supermarket has

been described. I have mention about founder, company’s outlets, what are the future plans

of Subhiksha, their profit margins, organizational hierarchy, performance drivers of

Subhiksha, SWOT analysis, and about competitors.

About CRM

Customer Relationship Management is the process of building long term, rusting, win-

win relationships with customers, distributors, dealers and suppliers. Overtime,

relationship marketing promises and delivers high quality, efficient service and fair prices

to the other party. The basic purpose of an organization is to create customers and retain

them.

Definition:

“CRM is a strategic approach that combines the business process, technology, and

information across an enterprise to attract & profitable customers.”

1. CRM is a business strategy

2. CRM is about relationship

3. CRM deals with long-term relationship

4. CRM utilized every aspect of an organization

5. CRM is the two way process:

OBJECTIVE OF THE PROJECT

• To increase the awareness among the customers

• To study the customer loyalty program.

• To study the customer retention process and its efficiency.

• To study customer behavior when special offers are provided.

• To study the customer satisfaction level of Subhiksha.

Findings

• Maximum population of the territory were loyal to Kirana store who were

catering them service from years. They were many of them were having the

credit account in the stores & were habitat to the particular.

• There is almost 50% retention of customers visited the store before as per the

analysis.

• Discount giver retail shops are the major competitors of Subhiksha.

• Most customers compared subhiksha with Big bazaar and secondly with Vishal

mega mart.

• Satisfaction level of existing customers is satisfactory, however for the future

prospects more changes and efforts have to be taken.

Conclusion

As Subhiksha is newly started its operations in CIDCO, it has to settle down it’s whole

process quickly. The flour space is less but it has good business out of that. Major

problem is of non availability of the product whose demand is more and it contribute

maximum amount in the bill customer get shifted to Kiraa stores where they can get all

their goods under single roof, and CRM program might seems to be fail. Proper training

should be given to the sales assistants, outbound persons, and to delivery persons so they

can communicate as per company’s policies so the CRM program will implement as per

decided. Special offers should be inform to the customers on right so they can take its

maximum benefits, and thus customers get satisfied, they will turn out loyal to the

organization, and organization get it’s sale.

INTRODUCTION

Retailing today occupies a key role in the world economy. This is evidenced by the fact

that the largest firm is not a manufacturing; rather it is a retail firm.

i.e. wal-mart, reliance fresh, Subhiksha etc. today the retail industry is estimated $6.6

trillion. In India too, we have been witnessing a retailing revolution since 1991, when the

first organized and contemporary retail store chain Shopper’s Stop was opened in

Mumbai. Today India has 12 million retail outlets but organized retailing account for

only 2% of the business. As opposed to this china account for 20%, Thailand 40% and

Malaysia 55% of organized retailing. However, organized retailing is poised for major

growth in the country.

Retailing today is a fun-filled experience for the entire family. No more now the

dust and heat in which Indian consumer shop. Though the conventional kirana stores,

roadside mini department store at the panwala shop, the roadside eatery, or the

conventional teller in the bank continue to exist, increasingly the Indian market space is

being occupied by shopping mall, chain stores, department stores, shopping centers.

Faced with competition from modern retail outlet, the conventional kirana store or

retailer has also change colors. Today, these store no more look warehouses. They

organize their merchandise, display new product, run location promotions, offer loyalty

bonus to frequent shoppers, even take orders on phone and deliver at the customer’s

home at no additional cost. They have also adopted new technologies. Some of them use

bar codes, accept credit card or debit card for payment, and maintain computerized stock

registers which help

them monitor product category and brand movement. The change is not just restricted to

metros. It has affected the lives of shoppers in smaller towns. Organize retail has today

entered rural India also. Thus, retailing is today heading for boom.

OPPORTUNITY INDIAN RETAIL

• India tops the annual list of most attractive countries for international retail

expansion, according to AT Kearney’s Global Retail Development index 2006

• The $270-billion Indian retail market is growing at the rate of 12 per cent and the

organized segment grow nearly 48 per sent in 2006 at prevailing price

• Projected growth rate for the organised segment is about 40 per cent for the year

2007 and with major global players and Indian corporate house entering the fray,

this growth is likely to touch 45 per cent annum over next three years.

• 0 At 2003-04 constant prices, the size of the organized retail market is expected to

be in excess of Rs.200,000 crore ($45 billion) by year which will make it’s

contribution to total retail sales about 15 per cent. Currently, only 4.6 per cent of

the market is organized

• For organized players, the gaps of unused opportunities are glaring. The table

below illustrates this point:

Comparison of Organized and Unorganized Retail Market

28,000

930,000

35,000

980,500

47,500

1,036,000

66,500

1,098,000

96,500

1,164,000

140,000

1,234,000

203,000

1,380,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2004 2005 2006 2007 2008 2009 2010

organised

indian retail

Category wise Growth of Organized Retail Segment

Retail segment %Organized

2004

%Organized

2005

%Organized

2006

Clothing Textiles & Fashion accessories

13.6% 15.8% 18.9%

Jewellery 2.0% 2.3% 2.8%

Watches 39.6% 43.5% 45.6%

Footwear 25.0% 30.3% 37.8%

Health & Beauty Care Services

6.0% 7.6% 10.6%

Pharmaceutical 1.8% 2.2% 2.6%

Consumer durable, home appliances

7.8% 8.8% 10.4%

Mobile handsets Accessories & Services

6.5% 7.0% 8.0%

Furnishings- home & office

6.7% 7.6% 9.1%

Food and Grocery 0.5% 0.6% 0.8%

Catering services 5.7% 5.8% 6.9%

Books, gift and music 9.8% 11.7% 12.6%

Entertainment 2.6% 3.3% 4.1%

Total 3.0% 3.6% 4.6%

• Food and grocery retail is by far the single largest block, estimated to be worth

Rs. 743.900 crore ($168 billion) at the moment, more than 99 per cent of this

segment is claimed by kirana stores

• According to recent studies conducted by National Council of Economics

Research (NCAER), rural India is home to720 million consumer spread across

627,000 villages

COMPANY PROFILE

WELCOME

TO

SUBHIKSHA TRADING SERVICES LTD.

An Indian retail chain is made up of more than 650 outlets in 30 cities selling

groceries, fruits, vegetables and medicines. It is started and managed by

R Subramanian, it’s an IIM-A alumni

The name "Subhiksha" means prosperity in Sanskrit. It opened its first store in

Thiruvanmiyoor in Chennai in March, 1997 with an investment of around Rs5lakhs. The

retailer has seen a considerable growth by offering goods at cheaper rates and thus by

increasing its customer base. It is also dubbed as India's largest retail chain.

Subhiksha, the Chennai based, 400 stores strong, India’s biggest grocery and pharmacy

discount retail chain, is growing at a scorching pace and is bracing up to take its tally of

retail stores to 750, by March 2007. During the current financial year it is also confident

of doubling its 2005-06 turnover of Rs.335crore.

The fast growth of Subhiksha is an outcome of Rs.300crores it raised earlier to fund its

network expansion. While, Rs.80crore came in the form of equity, Rs100crore were

raised as working capital and Rs70crore as long-term debt. ICICI Ventures holds 24% in

the company

Profit margins

Subhiksha, which began selling mobile phones from Delhi, about a month ago, is betting

big on this product portfolio and may, in the coming months, even consider creating a

separate dedicated chain for the same, according to an Economic Times report .

With the economies of scale already in place, Subhiksha, which presently has a portfolio

of private labels for staple products, is actively creating a portfolio of private labels for a

rage of other products including baby foods, edible oils, etc. This will help Subhiksha

raise its profit margins

Future plan

The company proposes to open stores in Maharashtra, Gujarat, Andhra Pradesh and

Karnataka. In the National Capital Region, the company will open 145 stores of which

120 will be operational in the next eight weeks.

For the Delhi market, the company has earmarked an investment of Rs.100crore over the

next two years.

Subhiksha had already tied up the fund for expansion through equity and debt.

At present, ICICI Venture is the only venture fund that has invested in the company.

"Between 2000 and 2005 ICICI Venture has invested Rs.50Crore for a 24 per cent stake,"

Mr. Subramanian said.

About the future plans, he said the company would come out with an initial public offer

when it had achieved a size of around 1,000 stores. The company has been making profit

for the last eight years, and its revenues have grown 25 per cent in the last two years.

The company earned revenue of Rs.330crore with a profit of Rs.10crore last year. Every

store on an average had a billing of Rs.3.50crore. The expansion would add around Rs.

1,575crore to the top line, he said.

COMPANY LOGO

COMPANY SLOGAN

Pay less……Always

COMPANY PHOTO

Organizational Hierarchy

DRIVERS OF PERFORMANCE FOR SUBHIKSHA

MDMD

Vice president

Commercial

Vice president

Commercial

L.P.MANAGER

L.P.MANAGER

ACCOUNT MANAGER

ACCOUNT MANAGER

PURCHASEMANAGER

PURCHASEMANAGER

BACKEND MANAGER

BACKEND MANAGER

Vice president

(Operation)

Vice president

(Operation)

ROMROM

B.AB.A

B.D.MB.D.M

L.P HEAD

L.P HEAD

L.P EXECUTIVE

L.P EXECUTIVE

TRAINER EXECATIVE

TRAINER EXECATIVE

L.PSUPERVISER

L.PSUPERVISER

ASSISTANT MANAGER

ASSISTANT MANAGER

W.EW.E

SUPERVISERSUPERVISER

PresidentPresident

AROMAROM

CASHIER CASHIER

EFFICIENCY:-

Knowledgeable Sales force that is customer focused is an important Dimension of

efficiency. Information Technology system infrastructure needs to help operations run

efficiently and effectively. Centralized delivery, which would entail large products are

stored at large warehouses (which enables the company to save on storage costs and more

room for carryout items) adds to the efficiency.

QUALITY:-

It is essential to carry prestigious Brands that are well known for having Superior quality.

High mark-ups add to higher revenues resulting in higher profits. Quality of Service

needs to be enforced with measures such as the sales force and is required to take weekly

quizzes to make sure the employees understand their products inside and out.

CUSTOMER RELATIONSHIP MANAGEMENT:-

The Company helps customers while making the purchase and also after the purchase

when a problem or question arises. They are not just nice to you when you are making the

purchase and forget about you when you leave. It is with you all the way.

STOCK AVAILABILITY:-

When you come into the store and an item is not in stock, the retailer can ship the item

the next day from the warehouse or from another store. The stock should be available as

per the Demand.

CUSTOMER RESPONSIVENESS:-

Customer problems can be taken care of either at a store by a sales representative or at

home with a toll-free number or online support. On-site service, no matter where you

live, needs to be available for bigger products.

PLANS OF KEY PLAYERS IN INDIA

Pantaloon Retail

Expansion into all possible formats of retail across categories and segment.

Approximately 30 million sq. ft by FY10. turnover expected to touch Rs.30,000cr ( $

6.67 billion) by FY10-11.

Reliance Retail

About Rs.30000cr ($6.67 billion) investment to set up multiple retail formats with

expected sales of Rs.90000 cr. $20 billion) plus by 2009-10

RPG

``Planning IPO, 450-plus Music world store and 50-plus Spencer’s Hapers covering 4

million sq.ft. area by 2010

Lifestyle

Rs.450cr investment in next five years to expand on max Hypermarkets and value retail

stores, home and Lifestyle Centers.

Pyramid Retail

1.75 million sq .ft of retail space and 150 stores in next five years.

Vishal Group

Plans include an IPO and investment close to Rs.1,250cr ($278 million) by 2010,

targeting 220 outlets, taking its cumulative retail space to five million sq. ft. and sales

turnover to Rs.5,000cr

Bharti Retail

With back-end tie-up with Wal-mart, Bharti is pumping in Rs.31,500cr in creating a

nationwide retail network, including 100 hyper malls and several hundred small

supermarkets.

SWOT ANALYSIS OF SUBHIKSHA SUPEMARKET.

The over all evaluation of Shubiksha trading co.’s strength, weakness, opportunity &

threats is called as SWOT analysis here. It is the through study of strength as well as

weakness of the companies.

STRENGTH :

• Maximum no. of outlet in city.

• Distributing cost is divided.

• Strong customer relationship.

• Having facility of home delivery.

• Only super market with pharmaceuticals.

WEAKNESS:

• Less amount of space available.

• Stock availability is less in some cases.

• Some brands are demanded frequently but not available.

OPPORTUNITY :

• Local promotions expect publishing in newspaper.

• Attracting customer by keeping stock available.

• Keep brand awareness and make them available.

THREATS

• Local shopkeeper.

• Local vegetable & fruit vendor.

• Malls

• Other supermarket like Reliance Fresh and MORE.

OBJECTIVE OF THE PROJECT

To study of customer relation management for Subhiksha trading

services

• To increase the awareness among the customers

• To study the customer loyalty program.

• To study the customer retention process and its efficiency.

• To study customer behavior when special offers are provided.

• To study the customer satisfaction level of Subhiksha.

ABOUT CRM

Definition:

“CRM is a strategic approach that combines the business process, technology, and

information across an enterprise to attract & profitable customers.”

Meaning:

1) CRM is a business strategy: CRM is primarily meant for business. It is a

strategy used by companies a specific objective of objective.

2) CRM is about relationship: CRM deals with the relationship between an

organization & its customers. Its deals with establishment, development,

maintenance & optimization of long-term mutually valuable relationships

between consumer & organization.

3) CRM deals with long-term relationship: CRM is not about one time interaction.

It is a conscious process to retain customers for as long as possible.

4) CRM utilized every aspect of an organization: since the customer is placed at

the heart of the organization, every process that touches the customer of the

organization is geared towards the customer thus, marketing, sales, customer

service & field support are all redesigned, if necessary, to satisfy the customers

need & desires.

5) CRM is the two way process: CRM is not only about communicating to the

customer. It is communicating with the customer. Thus implies an listen to the

customer & satisfy the need he communicates to the organization.

CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management is the process of building long term, rusting, win-

win relationships with customers, distributors, dealers and suppliers. Overtime,

relationship marketing promises and delivers high quality, efficient service and fair prices

to the other party. The basic purpose of an organization is to create customers and retain

them.

CRM is a Business Strategy to acquire and retain the most valuable customer

relationship. It is estimated that the cost of acquiring a new customer is four times the

cost of retaining the existing one. The core concept behind Marketing is the role of

exchange. Exchange can take place between buyer and seller and is also not limited to

money. It is just like as social interaction, which gives Birth to the concept of

relationship. Relationship between two parties continues as long as parties get benefits.

BENEFITS OF CRM

• CRM helps in improving customer retention and loyalty. The customer will spend

longer periods at the retail outlet and buy more products which can result in long

term value.

• CRM will help in generating high customer profitability through a steady flow of

customer purchases from the same retail outlet.

• CRM can result in reduced cost of sales, as existing customers will be more

responsive and active.

Purposes of customer Relationship management

CRM, in its broadest sense, means managing all interaction and business with

customer. This includes, but is not limited to, improving customer service. A good

CRM program will allow a business to acquire customer, service the customer,

increase the value of the customer to the company, retain good customer and

determine which customer can be retained or given a higher level of service. A good

CRM program can improve customer service by facilitating communication in several

ways:

• Identify how each individual customer defines quality, and then design a

service strategy for each customer based on these individual requirements

and expectations.

• Provide a fast mechanism for managing and scheduling follow-up sales call

to assess post-purchase cognitive dissonance, repurchase probabilities,

repurchase times, and repurchase times, and repurchase frequencies.

• Provide a user-friendly mechanism for registering customer complaints.

• Provide a fast mechanism for correcting service deficiencies (correct the

problem before other customer experience the same dissatisfaction)

The CRM process Cycle

Development of organizational

structures

People development

Creation and magt. Of data mining and

warehousing

Investment in technology

CRM PROCESS

CRM is a process whose objective is to enhance customer loyalty. This process

consists of the following:

1) Creation and management of data mining and warehousing.

2) Development of organizational structures.

3) Investment in technology.

4) People development.

1) DATA MINING AND WAREHOUSING

The growing significance of data mining and warehousing in customer satisfaction

and business development has been touched upon in the chapter on Marketing

Research. In order to be effective, data mining has to be more intelligent and offer

information on the customer in real time. This data mining should help to disseminate

information on customer to everybody in the organization, which in turn should

facilitate each person’s functioning and also make him or her customer-responsive.

Companies have used data mining to support their sales and service staff, in

particular. They have also supported their sales and service staff with advanced

technology which has helped them use the data for the purpose of developing a

customized offer. The additional benefits of customer data warehousing (CDW) in

CRM processes are shown below:

DATA WAREHOUSING

Data Warehouse

Customization of marketing mix

Magt. Of Intermediaries

Relationship management

Customized Service Sales force

productivity

Targeted promotions

Product planning

Benefits of data warehousing in CRM

While developing the data warehouse, a company needs to consider the costs that are

going to be involved in it. Generally these costs are:

(a) Initial Investment Costs: - this will include both hardware and software as well

as resources (internal and external) to built the database.

(b) Running or Operational costs: - the CDW must be constantly updated with

current information and practices. Without it, the investment will be outdated and

ineffective.

(c) Enhancement Costs: - a CDW contain more than mane and addresses. It must

contain demographic, purchase habits, and performance. There is cost to obtain

and populate the database with this information.

(d) Work Force Costs: - staffing costs are involved in maintaining the CDW,

including users in the marketing, IT, and sales departments.

These costs must be estimated at the start of the CRM process.

Cost analysis could possibly lead the company to ask some fundamental questions on

whether it needs to create its own database or buy from other sources or outsource it.

2) ORGANISATIONAL STRUCTURE

One of the key issues in organization structuring is the development of inter-functional

processes which would ensure that customer-related problems are resolved by all the

departments that have a role in it. Invariably, all departmental heads should be involved

in the CRM process. We must also remember that the success of the process depends on

the active involvement of all managers and employees. Each one of them should respect

the interface of their functions with that of others and be able to use the data

appropriately.

Some of the other issues in the organizational structure will relate to developing

strategic alliance with other companies or intermediaries. Call centers are one example of

a customer service center. Today, companies in the US, like General Motors, GE, airline

companies all over the world. And even telecom companies have entered into strategic

alliance with call centers that have been set in India and other part of the world. Another

very commonly used structure is the direct sales agent or independent marketing groups

which are more concentrated in the financial services segment and cellular phone

industry. The firm needs to look at the issue of motivation and creating a commitment

among these alliance partners, which will help them to deliver the same level of service

that it would have given had it delivered it on its own.

3) TECHNOLOGY

One of the key inputs in CRM is the use of technology for data mining and also for

responding to the customer in real time. Some commonly used technological tools are the

telephone, the internet, computer, fax and electronic data interchange. Stanley Brown has

mentioned that there are three Ws of technology which seek to address the issues of the

integration of organizational process, technology, and the corporate. Integration of web,

workflow management, and data warehousing have lead to the creation of electronic

customer relationship management (ECRM)—the process by which companies can

understand customers in seamless manner. Smart cards are an example of the customer

sharing his data with the organization.

Each of these technologies performs a distinct role. Together they contribute to

the system working in an efficient manner. The web has been compared to the eyes, ears,

and mouth of the CRM process as it collects and presents the information to the user. The

data warehouse servers are like a brain and central nervous system. Its principal task is to

assimilate the information passed to it by the web and then to formulate the response

based on current external and historical information. Workflow management systems

automate the procedure by which documents, information, and all relevant tasks are

distributed among participants. It follows the normal rule of the division of labour and

sequencing of activities. This provides a strong framework for developing customer

centric business processes like order cycle management and customer services. The

seamless flow of work allows employees in the organization to route customers’

communications through a virtual folder that combines documents, voice messages, e-

mails, faxes, and so forth, to be delivered to the nearest customer service points at the

right time to ensure a single point resolution of any customer complaint or enquiry.

Another common technological tool used is voice mail. Combine with call center and

third party services provider, it could help the organization deliver the same level of

service to different segments of customers irrespective if their size and volume of

business. These technological tools could also help the organization decide on which

customer to cross sell or up sell.

An organizational process being used extensively is supply chain management.

Today SCM is increasingly becoming IT enabled. SCM, ERP, and CRM packages are

today being marketed by ERP vendors. One software which is being used extensively for

CRM is provided by SIEBAL which has vertical specific functions. This software could

be integrated in most back

office solutions like SAP and Oracle. SIEBAL today has solution for automotives,

communications, consumer goods, apparel and footwear, health care, finance,

technology, and energy sectors.

4) PEOPLE DEVELOPMENT

Even though technology today is extensively being used for the purpose of strengthening

the linkage of the organization with the customer, one must not forget that behind all

these technologies is the human being. Unless the human being have been empowered,

have the knowledge, and the right skills as well as a customer friendly attitude, the CRM

process will just not work. In fact, it is one area where companies are realizing

increasingly that they need to have the type of people who have the necessary perspective

and understanding of their function, product, organization, and a desire to be customer

responsive.

CRM AND RETAIL INDUSTRY

Retail industry has been growing multifold in India .the organized retail industry will be

the center of gravity for the leading industrial group in the period to come. However the

success of any retail industry depends very greatly on how their CRM is. In fact acquiring

a new customer cost about ten times more than retaining an old customer, thus creating a

need for better CRM in retail store.

• Retail stores use people to implement their technology, strategy, and processes.

• In fact all the employees are CR managers not just sales, services and marketing

people.

• Information system/CRM packages play a very vital to improve the CRM process.

• CRM is devising new business models using technology and human skills.

• Guiding business principles need to be reiterated in every business transaction to

get success.

• Dealing with the market transformation and changing business modes,

understanding customer value system, etc. are the key for CRM in retail.

CURRENT SCENARIO AND CHALLENGES

• People recognize the importance of CRM and started working in this direction.

• Investing in people and technology may be costly affair.

• It needs implementation of planned change.

• Developing the right attitude of employees may be difficult, but it is possible.

• Continuous up gradation of skills of employees in the light of employee turnover

may really be a challenging task.

• Creating acceptance for the new customer-centric business paradigm.

• Better compensation packages, change of behavior may be difficult for

implementation of CRM.

• Right executive leadership is a very difficult task.

GUIDELINES FOR SUCCESFUL IMPLEMENTATION OF

CRM IN RETAIL INDUSTRY

• Understand the economic worth of a customer if he/she becomes loyal to a

particular store.

• Perform cost-benefit analysis.

• Determine the functions to automate based on company specific needs.

• Automate only what needs to be automated.

• Decide what kind of CRM is to be implemented.

• Plan before implementing CRM software.

• Employ technology smartly.

• Administrate the system and impart an intensive training program to the

employees involve in this whole process.

RESEARCH METHODOLOGY

Meaning of research

Research in common parlance refers to a search for knowledge. One can also

define research as a scientific and systematic search for pertinent information on a

specific topic. In fact, research is an art of scientific investigation. The advanced learner s

dictionary of current English lays down the meaning of research as a careful investigation

or inquiry especially through search for new facts in any branch of knowledge.

Objective

The purpose of research is to discover answers to questions through the application of

scientific procedures. Though each research study has its own scientific purpose, we may

think of research objectives as falling into a number of following groups:

• To gain familiarity with a phenomenon or to achieve new insights.

• To portray accurately the characteristics of a particular individual, situation or a

group.

• To determine the frequency with which something occurs or with which it is

associated with something else.

• To test a hypothesis of a casual relationship between variables.

Research Methodology

Research methodology is a way to systematically solve a research problem. It

may be understood as a science of studying how research is done scientifically. In it we

study various steps that are generally adopted by a researcher in studying his research

problem along with logic behind them.

Research process

Before embarking on the details of research methodology and techniques, it seems

appropriate to present a brief overview of the research process. Research process consists

of series of actions or steps necessary to effectively carry out research and the desired

sequencing of these steps.

• Formulating the research problem

• Extensive literature survey

• Development of working hypothesis

• Preparing the research design

• Determining the research design

Deliberate sampling

Simple random sampling

Systematic sampling

Stratified sampling

• Collecting the data

By observation

Through personal interview

Through telephone interviews

By questionnaires

• Execution of the project

• Analysis of data

• Hypothesis-testing

• Generalization and interpretation

• Preparation of the report

Types of research

1. Descriptive research

2. Analytical research

3. Applied research

4. Fundamental research

5. Quantitative research

6. Qualitative research

7. Conceptual research

8. Empirical research

The above mentioned are the various types of research which a researcher can apply in

order to achieve one’s desired objective. Therefore to achieve the objectives of my

research I have used descriptive research

Sampling plan for the project

Geographical/sample area: Nashik

Sampling unit: Subhiksha shop

Sample size: 500 questionnaires

DATA COLLECTION

The project was to check feasibility of the services offered by Subhiksha using primary

data. The primary data was obtained through observation, direct communication with the

people and filling up of questionnaires, also enormous help was obtained from Subhiksha

branch members, crew, staff and colleagues working there.

Special offer for Loyalty card (SUBHIKSHAM) holders

A)

1) On the purchasing of Rs.333 Get Fruits of Rs.30 free.

2) On the purchasing of Rs.666 Get “Spring Tea” of Rs.55 free.

3) On the purchasing of Rs.999 Get 1 kg “PICRIC BASMATI RICE” of

Rs.85 free

B)

1) On the purchasing of Rs.555 Get “2 Maggi Nuddles Packets” free.

2) On the purchasing of Rs.1100 Get “2 Picric Dish Soap” free.

3) On the purchasing of Rs.1500 Get 2 kg “PICRIC BASMATI RICE”

free.

C) Combo offer.

Buy

10 kg Ashirwad Ata + 2 kg Sugar + 1 kg any Pulse

FOR Rs.220 only

CUSTOMER ANALYSIS

Date:- 1/6/2007 to 7/6/2007

SNO PARTICULARSSUBHIKSHAM

HOLDERS

NON SUBHIKSHAM

HOLDERSTOTAL

1 Total (in Nos) 1,8212 Visited (in Nos) 2973 Visited (in %) 16.31

4Not Visited (in Nos)

1,524

5Not Visited (in %)

83.69

6Total Bills (in Nos)

559 1,652 2,211

7Total Bills Amount

211,809.10 128,276.28 340,085.38

8 Average Bills 378.91 77.65 153.82

Date:- 8/6/2007 to 14/6/2007

SNOPARTICULARS

SUBHIKSHAM HOLDERS

NON SUBHIKSHAM HOLDERS

TOTAL

1 Total (in Nos) 1,8212 Visited (in Nos) 2843 Visited (in %) 15.60

4Not Visited (in Nos)

1,537

5Not Visited (in %)

84.40

6Total Bills (in Nos)

514 1,614 2,128

7Total Bills Amount

166,868.15 114,692.62281,560.7

78 Average Bills 324.65 71.06 132.31

Date:- 15/6/2007 to 21/6/2007

SNOPARTICULARS

SUBHIKSHAM

HOLDERS

NON SUBHIKSH

AM HOLDERS

TOTAL

1 Total (in Nos) 1,821

2Visited (in Nos)

127

3 Visited (in %) 6.97

4Not Visited (in Nos)

1,694

5Not Visited (in %)

93.03

6 Total Bills (in 219 728 947

Nos)

7Total Bills Amount

64,220.30 44,882.24109,102.

548 Average Bills 293.24 61.65 115.21

share of loyalty card holder in total no of bills

SUBHIKSHAM

HOLDERS23%

NON SUBHIKSH

AM HOLDERS

77%

SUBHIKSHAMHOLDERS

NONSUBHIKSHAMHOLDERS

Average amount of bill

SUBHIKSHAM

HOLDERS 83%

NON SUBHIKSH

AM HOLDERS

17%SUBHIKSHAMHOLDERS

NONSUBHIKSHAMHOLDERS

FRUITS & VEGITABLE ANALYSIS

Date :- 1/6/2007 to 7/6/2007

SNOPARTICULARS

SUBHIKSHAM

NON-SUBHIKSHA

M

TOTAL

1 0 to 100 138 502 6402 100 to 300 6 40 463 300 to 500 1 1 24 500 to 1000 0 0 0 Above 1000 0 0 0

145 543 688

Basket size of customers

138

6 1 0 0

502

40 1 0 00

100200300400500600

0 to

100

100

to 3

00

300

to 5

00

500

to 1

000

Above

100

0

Rs

No

of

cu

sto

me

rs

SUBHIKSHAM

NON-SUBHIKSHAM

Date :- 8/6/2007 to 14/6/2007

SNOPARTICULARS

SUBHIKSHAM

NON-SUBHIKSHA

M

TOTAL

1 0 to 100 162 419 5812 100 to 300 3 31 343 300 to 500 0 0 04 500 to 1000 0 0 0

165 450 615

Date :- 15/6/2007 to 21/6/2007

SNOPARTICULARS

SUBHIKSHAM

NON-SUBHIKSHA

M

TOTAL

1 0 to 100 59 233 2922 100 to 300 2 7 93 300 to 500 0 0 04 500 to 1000 0 0 05 Above 1000 0 0 0

61 240 301

DATA COLLECTION TOOL

The data collection tool that I have used is Questionnaire. I have selected

questionnaire as a data collection tool primarily because of descriptive nature of sampling

& secondly it was the most suitable tool that could help in achieving all the objectives of

the study & to do the analysis deeply and effectively.

1) Primary data is collected by using Questionnaire, and by asking questions to the

customers of subhiksha, staff of Subhiksha.

2) Secondary data is collected from books, Subhiksha web site, Retail Magazines,

and etc.

DATA ANALYSIS

1) Awareness

Pomp let Television News paper Other

59 34 209 176

Awareness about Subhiksha

Pamplilet12% Telivision

7%

News paper44%

Other37%

Pamplilet

Telivision

News paper

Other

Newspaper is the most effective medium of advertisement, it contribute 44% of the

customer awareness about Subhiksha super market. Pomp lets are unable to attract

customers attention, television is also effective but it is quite costly for organization so

the adds are less frequently given. Other medium includes mouth publicity, Radio mirchi,

e.t.c. which also contribute to 37%.

2) Retention of Customers.

Once Twice More than Twice234 148 63

Customer Retention

Once53%Twice

33%

More than two14%

Once

Twice

More than two

The 33% of customers made 2nd visit, 14% of customer visited more than twice and 53%

of customers were not turn for 2nd visit, so efforts have to be done for customers repeat

visit.

3) Price Comparison

Less Comparable High202 173 96

Comparison

43%

37%

20%

less

Comparable

high

Price of subhiksha were mostly compare with local kirana stores, Big-Bazar, and Vishal

mega mrt. Here subhksha found itself on upper hands because 43% of customers found

its prices are less, 20% were think prices are high as there are some local supermarket

stores which have low prices of products but the quality assurance is not there.

4) Goods purchase from Subhiksha

Branded items

Fruits and Vegetable

Grocery Medicines Mobile phone

437 289 142 105 204

050

100150200250

300350400450500

brandeditems

fruits andvegetable

grocery medicines mobail phone

Product

37%

25%

12%

9%

17%Branded items

Fruits and Vegetable

Grocery

Medicines

Mobilephone

5) Service given at outlets

Good Bad Average247 83 140

Service Offered

Good52%

bad18%

Average30%

Good

bad

Average

52% and 30% of customers feel the service offered at subhiksha is food and average but

so almost 48% of customers are not feel delighted, so efforts should be doe for that as

customer delight is the key thing for Customer Relationship Management.

6) Availability of stock at the time of purchasing

Always sometimes Never173 280 47

56% of customers not get the products sometimes, the products are of high demand like

Edible oil, Sugar, Groundnut which contribute maximum amount of bill, so the customer

get shifted to local Kirana stores where they get everything under one roof.

7) Attraction point for purchasing at Subhiksha

Product Quality

Price Discount Schemes

Customer Service

Stock availability

35%

56%

9%

A S N

35 117 49 10

Attraction areas for Subhiksha

35

117

49

10

0

20

40

60

80

100

120

140

Product Quality Price DiscountSchemes

CutomerService

Series1

17%

55%

23%

5%

Product Quality

Price

Discount Schemes

Cutomer Service

The customers who attract because of discount schemes are the loyalty card holders, to

whom the special schemes are offered but they are only 23%.

8) Honesty of Punch line

Honesty in Punchline

0

50

100

150

200

250

300

350

yes no cant say

yes 289

no 181

cant say 30

yes 289no 181

cant say 30

FINDINGS

From the analysis of the data I collected during the study I present following Findings:

• Awareness level about subhiksha among the existing customers is high.

• Most customers compared subhiksha with Big bazaar and secondly with Vishal

mega mart.

• Satisfaction level of existing customers is satisfactory, however for the future

prospects more changes and efforts have to be taken.

• Location of subhiksha is good as targeted middle class customer.

• There is almost 50% retention of customers visited the store before as per the

analysis.

• Discount giver retail shops are the major competitors of Subhiksha.

• Maximum population of the territory were loyal to Kirana store who were

catering them service from years. They were many of them were having the

credit account in the stores & were habitat to the particular.

• Awareness about Subhiksha was 94.30% amongst the total sample size.

• Local area people were habitat to verify the grocery by looking them by taking

in hand.

• Some of the people were scared about supermarket as well as mall culture.

• Most of people were not aware of scheme provided in Subhiksha.

• Most of the people some times the person knows the older scheme and comes to

the outlet but the scheme they knew happens to be out of the time and replaced by

new one.

• The problem of changes is always an issue.

• People complain about the quality of grocery.

• People complain about the space available in the outlet parking space and

parking problem.

• People complain about the availability of the Branded product.

• People also complain about the price tags which make them confused.

CONCLUSION

From the analysis of the data I collected during the study I

present Following

1. Customers face parking problems which should be improved.

2. Customers should not face the problem with non-availability of Brands and Stock

in the store.

3. The service given by the subhiksha members should be improved.

4. More focus should be given on the advertisements of Subhiksha.

5. Hoardings should be put up in the key areas of the city.

6. SMS should be given to the customers about the new offers.

7. More Promotional tools to be made to attract new customers.

8. More customers should be converted into subhiksha loyalty card members; more

stress should be given on retention of customers.

9. Give proper training to delivery-boy so that he can communicate with the

customers in better way.

10. Shop should be clean from dust / waste

LIMITATIONS

The limitations are as follows:-

1) The project has been restricted for only CIDCO area.

2) Some customers refuse to co-operate and do not disclose their

Guanine opinion.

3) Customer information is highly confidential, so organization doesn’t disclose it

properly.

4) The outlet is newly setup so the system and the processes are not at par.

5) Respondent’s answers might have influence or bias.

6) Information is collected from the Subhiksha customers only.

7) Making appointments to the Management personnel is tough job, because they are

very busy.

8) The weather in these months was very bad so customers were avoiding to interact.

BIBLIOGRPHY

To obtain more information regarding the present study and to Substantiate it with

theoretical proof, the following references were made:

List of books and other supplementary material referred:

1) Marketing Management- By- Philip Kotler

2) Marketing Management- By- Rajan Saxena

3) Customer Relationship Management

4) Research Methodology: C.R. Kothari

List of websites

1) www.subhiksha.biz

2) www.google.com

PROMOTIONAL TOOLS

Internal Structure of Subhiksha Outlet..

Subhiksha Loyalty Cards Called “SUBHIKSHAM ”

Pomp Let of Offer

Inaugural Offer From Subhiksha

QUESTIONNAIRE

NAME:

ADDRESS:

1) Are you aware about Subhiksha Super Market?

Yes No

2) Have you got Subhiksha loyalty card?

Yes No

3) Are you making aware about new schemes on loyalty card.

Always Sometimes

Rarely Never

4) Do you take its benefits?

Yes No

5) If yes, then how many times do you visit Subhiksha Super Market in month?

One Twice More than two time

6) How you look the price of Subhiksha than other shop/moll?

Less Comparable High

7) Which type of goods you like to purchase?

Branded item fruits and vegetable

Grocery Medicines Mobile phones

8) On an average up to what amount you are purchasing every time from Subhiksha?

Up to 100 up to 500

up to 1000 more than 1500

9) Do you satisfy the service given by Subhiksha?

Yes No

10) Are you satisfying the quality of product purchase from subhiksha super market?

Yes No Partially

11) Do you find sufficient availability of stock at the time of purchasing?

Always Sometimes Never

12) From which following advertisement media you know about subhiksha?

Pomp let Television

news paper other

13) What exactly attracts you to come in Subhiksha for purchasing?

Product quality Price

Customer services Discount schemes

.

14) What you feel about the staff of Subhiksha?

Good Average poor