Final Project 2 (1)

8/22/2019 Final Project 2 (1)

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ContentsOUR APPROACH........................................................................................................................................ 2

MycityDiscount Cards .................................................................................................................................. 4

Canopy/stalls................................................................................................................................................. 7

Telecalling..................................................................................................................................................... 7

Pamphlet distribution .................................................................................................................................... 7

Mailer through post....................................................................................................................................... 7

Corporate Presentation.................................................................................................................................. 7

INTRODUCTION TO THE STUDY ........................................................................................................... 9

Customer Loyalty.......................................................................................................................................... 9

Building Customer Value ........................................................................................................................... 10

Loyalty Programs........................................................................................................................................ 11

Demographics ........................................................................................Error! Bookmark not defined.

Customer Satisfaction ................................................................................................................................. 11

Relationship Marketing............................................................................................................................... 13

Customer Retention .................................................................................................................................... 15

Major competitors ....................................................................................................................................... 17

Local Competitors....................................................................................................................................... 18

Analysis of major Competitors ................................................................................................................... 19

Research Methodology ............................................................................................................................... 19

Demographics ..................................................................................................................................... 20

Household ........................................................................................................................................... 21

Profession............................................................................................................................................ 21

Transport ............................................................................................................................................. 21

Other................................................................................................................................................... 21

Questionaire result ..................................................................................................................................... 22

Statically review.......................................................................................................................................... 23

Conclusion .................................................................................................................................................. 23

References ................................................................................................................................................... 24


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Companys Profile

Maven Solutions is in the business of helping clients get the

right professionals on time. Our consultants specialize in

search and selection of human capital within specific

industries, which include Banking, Insurance & Finance,

Pharmaceuticals /Health Sciences, Engineering,

Manufacturing, Oil & Gas, Marine, IT &

Telecommunications, Hospitality, and Fast Moving

Consumer Goods.

We not only partner with our Clients on recruitment needs

but also work closely with Candidates who are seeking an

opportunity. We are in the business of manpower recruitment

& staffing and we continuously keep adding value to our line

of services with an increasing productivity at every stage of

employment lifecycle.

OUR APPROACH

Maven Solutions is in the business of helping clients get the

right professionals on time. Our consultants specialize in

search and selection of human capital within specific

industries, which include Banking, Insurance & Finance,

Pharmaceuticals / Health Sciences, Engineering,

Manufacturing, Oil & Gas, Marine, IT and

Telecommunications, Hospitality, and Fast Moving

Consumer Goods. We not only partner with our Clients on

recruitment needs but also work closely with Candidates who

are seeking an opportunity. We are in the business of

manpower recruitment & staffing and we continuously keep

adding value to our line of services with an increasing

productivity at every stage of employment lifecycle.

SEARCH & SELECTION METHODOLOGY based on the

job brief (job description) and relevant details such as

industry / company preference, salary package, etc given to

us by the Client, we will conduct the research. Maven

Consultants will utilize a combination of search / selectionapproaches best suited for the position/s.

Our business is based on the foundation of integrity and

professional relationships. Maven Resourcing Solutions

believes that the interests of our clients and candidates are of

the utmost importance. We specialize in the placement of

Sales & Marketing, Consulting, Project Delivery, and IT

Technical professionals of all levels across all industry

verticals, providing both Permanent and Contract recruitment

solutions.


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Maven has grown to become one of World's premier

recruitment partners of choice for many of the region's

leading organizations, both large and small. When it comes

to sourcing top quality staff in an expedient and cost

effective manner, Maven has earned a reputation as being in

the 'upper Maven' of recruitment agencies.

With dedicated teams servicing each industry sector, Maven

understands your industry and your unique needs. Whether

you are an employer seeking new staff or a candidate seeking

new employment, we are poised to provide you with the best

possible service!

Maven is recognized by the region's most talented candidates

as being a recruitment partner they can trust, and one that

will competently represent them in a confidential and ethical

manner. Whether passively 'keeping an eye on' the market or

actively seeking new employment, Maven has helped

thousands of candidates secure their ideal positions.

At Maven Solutions we understand the fascination of

companies towards the Just in Time, Just in Skills Human

Resource Solution model and the effectiveness of this model

in enhancing productivity and gaining a competitive edge.

Our ability to precisely understand the client requirements

and the speed at which we deliver committed results along

with our high ethical standards of work have contributed tothe building of our reputation as among the most trusted HR

Services Companies in North today. Our services include:

Selection & placement our clients Manpower

Requirements are fulfilled through our exhaustive in house

database and through web mining. The profiles are put

through a thorough screening process, after which they are

evaluated under different norms and then finally processed as

per the clients requirements. Turnkey Recruitment The

entire Recruitment Process is taken up as a Turnkey

Assignment, whereby we manage the entire logistics i.e.

Written Tests, Organizing Group Discussions, Conducting

Technical Tests, and Preliminary Interviews etc. The entire

activity from A to Z is taken up as a turnkey project. Staffing

Solutions .Maven Solutions has an ability to deal with

diverse Industry Verticals and address staffing needs across

all Management Functions and at different levels. Our

experience in the staffing industry enables us to fully

evaluate their business situation, determine their specific

needs and provide the best staffing results. Our innovative

staffing solutions are tailor-made to enable, organizations

meet the challenges of todays fast changing business


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environment. We work closely with clients to identify,

engage, train and retain successful people that organizations

need to create success stories. Our consultants are highly

skilled and are well versed in the industry sectors and job

categories enabling them to have a profound understanding

of the assignments.

MycityDiscount Cards

We as a company mycitydiscount.in are planning to provide

discount cards to the respected people of the city. Regarding

this a pilot project is launched in Dehradun.

We are setting some target in this city and at rapid rate it will

be beneficial for you to take discounts all over the country.

Benefits to Vendors

Since number of customers of

discount card for maven

Are more than 8,000 therefore

Sales volume increases

New Customers added to their shop

Customer Loyalty increases

L ist of vendors categories

Bakery & Confectionery

Beauty, Spa & Salon

Books, Magazines & Stationery

Clothing & Garments

Computer & Accessori es

Doctors and Clini cs

Education & Career

Electronics & Mobil es

F ish Aquarium & Pet Shop

F itness & Sports

F lower Shop

Footwear, Bags & Accessori es


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Gif ts & Toys

Home, Furni shing & Interiors

Hotels & Resorts

Jeweler

Movies & Entertainment

Optical & Watches

Others

Pathology & Pharmacy

Photo Studio

Terms and conditions

For Vendors:

The vendor will abide by the offers they have agreed at the

time the discount card is presented.

The vendor will ensure that their employees are aware of the

current agreed offers.

Only provide the offers on production of the discount card.

Only accept discount cards that are part of our

MycityDiscount Network

. Only accept discount cards that are not defaced or

damaged.

Check expire dates before giving the discount.

Inform us of any changes in the business i.e.: Contact

numbers/address, emails, website changes etc

MycityDiscount will use the name and the logo of thevendor in all the printed material including the brochure &

website.

It is expected that the vendor would intimate changes (if

any) including removal of any offer at least 15 days in

advance, so that the member could be informed accordingly.

For Card Holders:

This is not a Credit Card and is not transferable. Please

present this card to avail the benefits.


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This Card is the property of MMI Ltd and can be withdrawn

anytime. It has no legal binding.

The benefit/s offered by the merchant cannot be used in

conjunction with any other offer or scheme that is in force.

Please announce your intent to avail the benefit/s, before the

bill is prepared.

MycityDiscount merchants have the right to ask for student

ID to ensure that the person using the card is a student. This

request is made to protect the cardholder from anybody

falsely using his or her card. If you cannot provide a valid

student ID, your discount may be refused

MycityDiscount (unit of MMI Ltd.) reserves all rights to

make amendments to these terms and conditions withoutgiving any prior notice to any cardholder.

It shall be the sole responsibility of the cardholders to check

on the web-site (www.mycitydiscount.in) for updates on the

promotional offer and for updated term and conditions.

MycityDiscount (unit of MMI Ltd.) reserves the right to

withdraw any promotional offer, at its sole discretion, at any

time without giving any prior notice thereof to the

cardholders.

Availing of any offer by the cardholder shall mean that the

cardholder has read, understood, accepted and agreed to

abide with all the terms and conditions of the offer along

with all its amendments, if any.

This offer is brought to you by the participating merchant.

MycityDiscount (unit of MMI Ltd.)Is not responsible for

goods/services offered by the participating outlets nor are

they liable for any defect or shortcoming of facilitating

process of the goods/services so obtained/availed or

redeemed by the Card holder.

Card sharing is strictly prohibited and constitutes fraud. Any

cardholder who shares their card will have their membership

revoked.

The member agrees to accept SMS/Email related to vendor

updates, changes in T&C, and promotional activities of the

company and its associate vendors.

The Insurance will be activated within one month from the

date of purchase of the Card.


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Marketing and Sales Strategies for Discount Card

Canopy/stalls Telecalling Pamphlet Distri bution Mailer through post Bui lding Retailers Corporate Presentati on

Canopy/stallsTo market our discount card we put our stall in front of

colleges and restaurants where our target customers are.

Our motive is to aware the people about our product .As the

same time if sales happen through it will be a bonus for us.In front of kfc and silvercity we put our stalls and ask the

people to buy our product. We also take the contact number

and address of them to keep contact with them.

TelecallingOur best and most affordable part

of sales is telecalling.By it we introduce ourselves, and take a note of potential

customer who will buy our product in future or at the same

moment.Through it our main aim is to get the appointments for our

product.

Pamphlet distributionOur main for pamphlet distribution is too aware the people.

We do it through newspaper hawkers. We distribute in

buildings like Tulas garden.

We distribute by giving them some money.

Mailer through postWe distribute by posting at the potential clientOr office address so that he is aware of the

product.

Corporate PresentationWe present our product in school colleges by taking

appointments. Like we do it in Maya Institute Selaqui and

Ambitions Institute in Karanpur


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As a result of that without direct advertisement in newspaper

or television we have created the huge market for our

product.


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INTRODUCTION TO THE

STUDYCustomer satisfaction, a business term, is a measure of how

products and services supplied by a company meet or surpass

customer expectation. It is seen as a key performance

indicator within business. In a competitive marketplace

where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly

has become a key element of business strategy. Customer

satisfaction is an ambiguous and abstract concept and the

actual manifestation of the state of satisfaction will vary from

person to person and service to service. The state of

satisfaction depends on a number of both psychological and

physical variables.

Customers Profile for Discount Cards

1) Income level of more than 2 lakh p.a2) Expenditure on monthly basis of more than 1,0003) Student of age group between 15-304) Urban area of Dehradun capital of Uttrakhand

Customer LoyaltyCustomer loyalty programs collect massive amounts of data

that the company should process and analyze. The large

number of consumer details the opportunity to the companies

to create a solid knowledge about their customers in

individually and in aggregate basis. ( Byrom, 2001).

Customer loyalty is one of those elusive qualities that every

company strives to achieve. Customer loyalty scheme is a

good case where the front lines between marketing and

mainstream marketing, customer database and

communication have been broken (OMalley, 1998).

A generic discount or points reward system is not necessarily

the best way to achieve marketing objectives because it

doesn't reward the customer for taking the desired action.

According to Uncles et al, (2003) there are two basic


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objectives for any loyalty scheme; firstly to increase the

volume of sales by increasing the usage and purchase level

and secondly to built strong relationship between customer

and brand. Therefore, any brand has to built a strong

relationship with the customer, this is the fundamental

purpose of any loyalty program. (Shoemaker et al, 1999).

The key in creating effective store loyalty programs is to

discover the most persuasive loyalty drivers for each

customer. Loyalty drivers generally fall into two categories:

product attributes (e.g., performance, quality, reliability) or

price/promotion sensitivity. Customers whose brand

repurchase is driven by intrinsic product attributes are

generally high-value customers because they exhibit a high

predisposition to stay with the brand and have low price

elasticity (e.g., their sales volume is relatively unaffected byan increase in price). Conversely, customers whose brand

repurchase is driven primarily by price/promotion sensitivity

are generally low-value consumers because they exhibit low

predisposition to stay with the brand through price

fluctuations (e.g., high price elasticity).(Uncles et al, 1994).

To obtain a clear picture of the drivers behind brand loyalty,

the company needs to build a consumer-centric analytic

framework that attempts to understand the consumer values

and thought processes preceding a purchase decision by

drawing from divergent sources of data.

Building Customer

ValueCreating loyal customers is at the heart of every Business.

The only value your company will ever create is the value

that comes from customers-the ones you will ever create is

the value that comes from the customers-Businesses

succeeds by getting keeping, and growing customers.

Therefore, to have loyal customers a new paradigm is

designed as

Customer oriented Organisation chart

customers

frontline people

management


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Loyalty ProgramsA generic discount or points reward system is not necessarily

the best way to achieve marketing objectives because it

doesn't reward the customer for taking the desired action.

According to Uncles et al, (2003) there are two basic

objectives for any loyalty scheme; firstly to increase the

volume of sales by increasing the usage and purchase level

and secondly to built strong relationship between customer

and brand. Therefore, any brand has to build a strong

relationship with the customer; this is the fundamental

purpose of any loyalty program. (Shoemaker et al, 1999).

The key in creating effective store loyalty programs is to

discover the most persuasive loyalty drivers for each

customer. Loyalty drivers generally fall into two categories:

product attributes (e.g., performance, quality, reliability) orprice/promotion sensitivity. Customers whose brand

repurchase is driven by intrinsic product attributes are

generally high-value customers because they exhibit a high

predisposition to stay with the brand and have low price

elasticity (e.g., their sales volume is relatively unaffected by

an increase in price). Conversely, customers whose brand

repurchase is driven primarily by price/promotion sensitivity

are generally low-value consumers because they exhibit low

predisposition to stay with the brand through price

fluctuations (e.g., high price elasticity).(Uncles et al, 1994).To obtain a clear picture of the drivers behind brand loyalty,

the company needs to build a consumer-centric analytic

framework that attempts to understand the consumer values

and thought processes preceding a purchase decision by

drawing from divergent sources of data.

Customer SatisfactionConsumer satisfaction as a result of a purchase decision is

the ideal, but due to the complexity of the construct and the

unpredictability of consumer behavior this is a difficult ideal

to realize. According to Jobber (2004) Once a product has

been bought, customer satisfaction depends upon its

perceived performance compared to the buyers expectations.

Customer satisfaction occurs when perceived performance

matches or exceeds expectations. After purchasing the

product, the consumer will experience some level of

satisfaction or dissatisfaction. If the product matches


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expectations, the consumer is satisfied; if it exceeds them,

the consumer is highly satisfied; if it falls short, the

consumer is dissatisfied. (Kotler, 1987).

Satisfaction is not solely a conscious, rational, and meaning-

deficient phenomenon, as it typically is measured in one-shot, post purchase surveys designed under the customer

satisfaction umbrella. Managers must recognize that

satisfaction may have important no conscious, affective, and

meaningful aspects as well.(Ranaweera et al, 2003).

Satisfaction is construed not in terms of a mental matching of

features and benefits against a priori comparison standards,

but as a result of consumers' ongoing attempts to manage the

opposing qualities of technological products in post-modern

life. Managers must be conscious that multiple satisfaction

models and paradigms may coexist and that these may

evolve over time. (White et al, 2005).

Customer satisfaction is being used as the major criterion to

judge the success or failure of all aspects of the hearing-aid

dispensing process. The critical issue is to find out the

relationship between the customer satisfaction and the

behavioural responses. In which extent the customer

satisfaction can lead or increase loyalty and store loyalty.

(Bowen, et al, 2001).

According to Taher et al (1996) being comfortable with a

store, satisfaction is not enough to ensure repeat patronage.

As Miranda et al (2005) summarize several factors influence

store satisfaction while shopping such as: Location of store,

nature and quality of assortment stocked, pricing strategy, in-

store promotions, sales personnel, physical attributes,

atmospherics, and loyalty cards. Reynolds et al (1995)

proved that loyal customers have a more elaborate and

stronger network of means-end chain linkages compared to

loyal users of a competing product. However, Mitchell et al

(1998) did not find strong relationship to support that loyal

customers have better knowledge of their store attribute than

the customers that are not loyal . According to Bloemer et al

(1998) there are two types of store satisfaction: manifest

satisfaction and latent satisfaction as antecedents to store

loyalty. It was shown that the relationship between store

satisfaction and store loyalty does indeed depend on the type

of satisfaction. The positive impact of manifest satisfaction

on store loyalty is stronger than the positive impact of latent

satisfaction on store loyalty. Manifest satisfaction is based on

a positive evaluation of a store which is well elaborated on.


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In addition we found that the amount of satisfaction has a

positive effect on store loyalty, whereas both involvement

and deliberation have a negative effect on store loyalty. It

should be noticed that the direct negative effect of

deliberation is even more pronounced than the direct

negative effect of involvement. Miranda et al (2005)

estimated two models, one predicting store satisfaction and

the other store loyalty when shoppers are presented with a

special purchase opportunity by a retailer that is not their

normal preferred choice. The store attributes and shopping

behavior patterns that influence store satisfaction in their

primary store were different from those that influence them

to stay loyal to their current store, except for sales assistance.

(Oliver, 1980) argues that customer loyalty (e.g. repurchase

intentions, willingness to provide positive word-of-mouth) is

a function of customer satisfaction, which again is a functionof a cognitive comparison of expectations prior to

consumption and actual experience. Customer

satisfaction/dissatisfaction requires experience with the

service, and is influenced by the perceived quality and the

value of the service (Anderson et al., 1993). In addition as

Andreessen et al (1998) conclude that customers may be

loyal due to high switching barriers or lack of real

alternatives. In addition there is now evidence suggesting

that companies reap far greater economic rewards from

highly satisfied customers than they do from the merelysatisfied (Carr 1999).

Relationship MarketingThe basis of relationship marketing is customer loyalty

because retaining customers over their life will contribute to

enhanced profitability. This implies that companies have to

learn continuously about their customers' needs and

expectations which are ever changing and oftenunpredictable. McElroy et al (2000). The origins of modern

relationship marketing can be traced back to a passage by

Schneider (1980) in which he observes: "What is surprising

is that researchers and businessmen have concentrated far

more on how to attract customers to products and services

than on how to retain customers". According to Morris et al

(1999) customer relationships can then be increased by

offering added value that company is able to derive from its

experience and learning. In contrast with the past the well

organized companies work hard to retain existing customers


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and increase the budget that existing customers spend with

them rather to attract new customers. The costs of attracting

new customers include advertising and promotion, but loyal

customers also act as word of mouth advertisers and will

generally spend more. On average it costs a firm five to six

times as much to attract a new customer as it does to

implement retention strategies to hold an existing one

(Lovelock and Wright, 1999). In practice, relationship

marketing originated in industrial and B2B markets where

long-term contracts have been quite common for many years.

According to Len Berry (1983), relationship marketing can

be applied: when there are alternatives to choose from; when

the customer makes the selection decision; and when there is

an ongoing and periodic desire for the product or service.

Fornell et al (1987) used the term "defensive marketing" to

describe attempts to reduce customer turnover and increase

customer loyalty. This customer-retention approach was

contrasted with "offensive marketing" which involved

obtaining new customers and increasing customers' purchase

frequency. Defensive marketing focused on reducing or

managing the dissatisfaction of your customers, while

offensive marketing focused on "liberating" dissatisfied

customers from your competition and generating new

customers. There are two components to defensive

marketing: increasing customer satisfaction and increasingswitching barriers.

Over the decades, attempts have been made to broaden the

scope of marketing, relationship marketing being one of

these attempts. Marketing has been greatly enriched by these

contributions. (Noordhoff et al, 2004). At the core of

relationship marketing is the notion of customer retention.

According to Gordon (1999), relationship marketing involves

the creation of new and mutual value between a supplier and

individual customer. Novelty and mutuality deepen, extend

and prolong relationships, creating yet more opportunities for

customer and supplier to benefit one another.

It is claimed by Reichheld et al (1990) that a 5%

improvement in customer retention can cause an increase in

profitability of between 25 and 85 percent (in terms of net

present value) depending on the industry. However, Carrol

et al (1992) disputes these calculations, claiming they result

from faulty cross-sectional analysis.


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According to Buchanan and Gilles (1990), the increased

profitability associated with customer retention efforts occurs

because:

The cost of acquisition occur only at the beginning of a

relationship, so the longer the relationship, the lower theamortized cost.

Regular customers tend to be less expensive to service

because they are familiar with the process, require less

education, and are consistent in their order placement. (

Ranaweera et al, 2003).

Buying decisions are based on more than product

specifications and price. Perceived brand relationships now

play a major role in the buying process. This brand

relationship holds especially true in the impersonal world ofinteractive marketing. (Beerli et al, 2004).

The paradigm for successful interactive marketing is

changing rapidly. The past sales philosophy was to sell one

product to as many people as possible. The paradigm shift is

evolving towards a long-term one-to-one brand relationship;

selling as many products as possible to one customer.

Marketers can now focus on the life-time value of a customer

instead of an individual transaction.

Customer RetentionBusinesses today readily share their experience in improving

customer retention. Most solutions point to business culture,

staff training, and sales methodology, along with tracking

and responding to customer demographics. In simple terms,

customer retention is all about the customer - and the

customer's experience.(Jamienson, 1994)

Loyalty is about identifying and profiling customers,enhancing profits from them and then retaining them, not

about rewarding gross spends.(Ranaweera et al, 2003).

The priority is to recognize both customers' value and

potential value as the basis for allocating resources to them.

(Bowen et al, 2001). One frequent flyer program, for

example, targeted its members that fly regularly. Even

though customer retention was treated as important most of

the time it was been viewed as an result of marketing

approach. Customer retention can easily help the marketers

to increase the power and the profitability of the company.


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The increases of companys market shares could be evidence

to the above mentioned relationship. However, the increase

of market shares can cover up the level of customer

defection. (Gronroos, 1994).

In fact, many companies minimize investment on thosecustomers who spend least when, in fact, segments of this

group might provide the greatest opportunity for future

profits. According to O Malley (1998) the companys aim is

to reduce marketing scrap heap (customers who defect) and

thus, enhance profitability. This renewed focus on customer

retention is generally referred to as loyalty marketing. One of

the most powerful advantages has to be gained from

customer insight, using both dynamic and static information

to recognize customers' current and potential value as the

basis for allocating resources to them. Such insight can begathered from product marketing, which is mainly behavioral

data and relationship marketing, which can also provide

attitudinal insight. And this is where reward schemes can

play such a pivotal role. (White et al, 2005).

The only way one can sustain a successful retention strategy

is through the use of effective measurement and then

promoting the resultant information as the key driver in

achieving and sustaining customer-oriented quality

(Jamieson, 1994).

Committed customers, who are loyal to the brand, do not

respond to the lure of competitors (McIlroy, et al, 2000).

Finally, as Lawrence et al (2006) conclude, retained

customers may pay higher prices than newly acquired

customers, and are less likely to receive discounted offers

that are often made to acquire new customers. All of these

conditions combine to increase the net present value of

retained customers. Lindgreen et al, (2000), for example,

compute that it can be (up to) ten times more expensive to

win a customer than to retain a customer and the cost of

bringing a new customer to the same level of profitability as

the lost one is up to 16 times more.


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Major competitors

Payback I ndia

Payback India has 10 million members now. But that numberis now expected to go up sharply with the German firm tying

up with the Kishore Biyani-led Future Group, the country's

largest retailer.Payback says it will double its presence in

India from 1,500 outlets to 3,000 outlets following the Future

group tie-up. For the Rs 12,000 crore Future group, the tie-up

makes sense as Payback, which has 25 million cardholders in

Germany and Poland, has seen at least 10 per cent increase

among its loyalty card holders in those two countries because

of frequent visits. Future Group will introduce Payback as its

new loyalty programmed from September this year.

But what does Payback bring to the table in a market which

already has several loyalty card providers? A lot, says Vibha

Rishi, ED, customer strategy, Future Group. Unlike

competitors, a customer can redeem their points at any of the

1,500 Future group store and will not be tied to the point of

purchase. In this programme, the ability to collect and

redeem points is vastly enhanced. Customers who want to

redeem their points can do so at Ezone stores to buy a colour

television or at Pantaloons to buy a T-shirt, says Rishi.

In another first, Payback will inform customers before the

deadline for redemptions expire. The whole strategy rests on

a simple principle. Payback's multi-partner programme will

allow customers to collect more points faster even from low

margin sectors like grocery and service centres. The

vouchers can also be redeemed from a wider network of

channel partners.

The technological backbone that Payback will bring will also

help everyone to share costs. The next challenge will be to

integrate payment functions, supplementing programmers by

adding online and mobile connection options and usher a

new couponing system that is already popular in Europe

and the US but currently has a limited play in India.

Loyalty Partners Payback's holding company was also

bought out by American Express this year and once the

operations get aligned globally, both Paypal and Payback can

have a ride piggyback on each other's network.

The Future-Payback alliance comes at a time when almost all

Indian retailers have loyalty programmes, which contribute


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to a significant share of their total sales. For instance,

Shoppers Stop's loyalty programme First Citizen, has over

two million members and 73 per cent of Shoppers' total sales

comes through it. Both Payback and Future are betting on the

220 million customers who walk into Future's stores every

year.

The loyalty card programme of Pantaloons called Pantaloons

Green Card will be merged with Payback. Though Payback

India has an exclusive arrangement with Future, it also wants

to tie up with local retailers to widen its reach. For example,

a telecom company is in its radar. Already tie ups with ICICI

Bank, HPCL, Air India, Megamart, MakemyTrip.com are in

place.

Local business partners are very important. Once we have

'lighthouse' partners such as Future Group and the telecom

company we are talking about, we will go to local partners.

We will do it along with Future Group as they have a lot of

local relationships, says Alexander Rittweger, chief

executive Loyalty Partner Group, the parent of Payback.

Payback also wants to replicate its success in the German

market in India. For instance, one in every two households in

that country hold a Payback card and it accounts for 10 per

cent of total German retail sales. About 95 per cent of

cardholders redeem their points.

Local CompetitorsJaguar Vip

Vanquisher Buzz

Kamal Jewllars

Silverci ty yuva

Dainik Jagran

Jaguar Vip

We provide our membership have Best Deals, Big Saving on

Everything, Ordinary Purchase, Extraordinary Deals &

Discount up 10% to 30% OFF. When member go shopping

by store and never miss coupons, discounts or cash back on

your purchases. Shopping for something specific?

JAGUAR VIP is a fast growing services provider group.

Jaguar VIP is always there to provide any help and valuable


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advice our customer may need. We treat our customers as

possessing partners, so they decide how extensive our

services should be. Go shopping by store and never miss

coupons, discount or cash back on your purchase.

Analysis of major CompetitorsMajor competitors in the market for maven solutions

discount card are payback India and Jaguar Vip. Although

the various banks, shops also provide that kind of privilege

cards. But all of them is of limited use, because there actual

work is something else. They are just using those card for

their customer satisfaction.

They have also not have personal tie up with the vendors.

Small vendors are not in their range ,although in the localmarket we have some competition with the discount cards of

vanquisher buzz , and Jaguar Vip.

These competitions are not tough now, as the amount of

vendors we have created is very large. And we are capturing

the market very fast.

Jaguar Vip card cost is about 1000 rs and our card is of 500

and 250 Rs Our major aim is to keep the trust on our

customers.

Major Thr eat

Therefore, Customers are attracted to online shopping not

only because of the high level of convenience,

but also because of the broader selection, competitive

pricing, and greater access to information. Business

organizations seek to offer online shopping because it is

much lower cost compared to bricks and mortar stores, offers

access to a worldwide market, increases customer value and

builds, Customer Loyalty.

Research Methodology

The research approach based on deductive approach that

gives the confidence that the truth of the conclusions will be

based on completely guaranteed and tried not to just make


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probable by the truth of premises. This survey used non-

probability samples due to the weakness to calculate the total

population of loyalty card holders and the lack of

information about the demographic segmentation of the

interest population. In this study the data from the collected

questionnaires catalogued and analyzed using SPSS. The

analysis of the results came from Descriptive analysis, Factor

analysis and Gross tabulation analysis.

Survey material

The questionnaire design and structure has been based on

similar studies such as, Bellizzi et al (2004), Wright et al(1999), Garton (1995).

Due to the lack of time in the process of interviewing, it

didnt use the open-end questions in which the researcher

does not limit the response choice.

Therefore, it separates into five chapters with nineteen

questions in total. In order to avoid problems in the process

of filling the questionnaires it was designed to be quick and

simply for the consumers due to their lack of time.

The research approach based on deductive approach that

gives the confidence that the truth of the conclusions will be

based on completely guaranteed and tried not to just make

probable by the truth of premises. This survey used non-

probability samples due to the weakness to calculate the total

population of loyalty card holders and the lack of

information about the demographic segmentation of the

interest population. In this study the data from the collected

questionnaires catalogued and analyzed.

Demographics

o Countryo Regiono Gendero Ageo Education levelo Occupation status


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o EthnicityHousehold

o Marital statuso Household sizeo Number of childreno Ages of childreno Personal incomeProfession

o Company sizeo Field of expertiseo Professional position in companyTransport

o Car accesso Access to motorcycleo

Purpose of travelling by plane

Other

o Glasses/contact lenseso Smoking habitso Use of mobile phone features

o Respondent Numbero Name Addresso Sex

Occupation

o Q1 Which income group you belong?o 10,000-20,000 20,000-30,000 more than 30,000

Student

o Q2When you would like to purchase from our outlets?o Festivals Family Functions o Daily Monthly not at all o Q3 When do you buy the product from the market?o Sales on shops basis of requirement seasonal

frequently


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o Q4What is your best destination to have a food?o Kfc pizza hut Nearby restaurant Other then nameo Q5 which category of shops you visit more?o Rest/bars/coffee garments/footwear salon/beauty

parlors

o Bookshop/mobile/accessories/gift shop/ jewellary o Q6 Do you want insurance in this card?o Agree Disagree Fully agree Fully Dissatisfied o Q7Do you get every time the listed discounto Agree Disagree Fully agree Fully Dissatisfied o Q8You pay money for your children enjoyment?o Agree Disagree Fully agree Fully disagree o Q9How many times you watch movie in a multiplex o Yearly Monthly weekly Nevero Q10How much you agree that discount card is giving us

more choices than any discount card in the market?

o Fully agree agree disagree fully disagree o Q11 Do you want to carry this card at each vendor we have

listed

o Fully agree agree disagree fully disagree o Q12Do you visit new shops after knowing that these shops

avail discount

o Fully agree agree disagree fully disagree o Q13Do you want to take this card for your family members

and friends?o agree agree disagree fully disagree

Questionnaires result

13 questions were asked by the respondent. Each respondent

give the accurate answer as possible.

As there are only seven questions and respondents are 100

therefore the analysis of result shown that.

Out of 100 respondents 80 are satisfied with the companyproduct.

Key points

Almost 50% of them visit to the shops, and the sales of

companys vendor are increasing, accordingly by which they

are increasing their profit margin.

20% of customers are from those

shops that sometimes do not get the discount they want.

Thats why they are not satisfied.


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Statically review

ConclusionSince there is not any tough competitor

, customer is happy with the service, and to avail this card for

future purpose also.

Number of choices given by this card is not given by other

card even the small shops are attached to this list.

Its card holder is increasing day by day. As a result customer

is feeling graceful to have this card.

Nearly 100-150 card holder are visiting kfc,

About 50 are visiting daily in pizza hut.

Therefore customer is paying loyalty towards card.

Our research is successful.

customer satisfaction level

satisfied

dissatisfied


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References

www.mavensolutions.com

www.wikipidea.org

www.mycitydiscount.in

www.google.co.in

Books

Statistics Krishna Publication by o.k. Sharma

Philip Kotler

Dart Book of maven
http://www.mavensolutions.com/http://www.mavensolutions.com/http://www.wikipidea.org/http://www.wikipidea.org/http://www.mycitydiscount.in/http://www.mycitydiscount.in/http://www.mycitydiscount.in/http://www.wikipidea.org/http://www.mavensolutions.com/

Final Project 2 (1)

Documents

Transcript of Final Project 2 (1)