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SIGNIFICANT OF STUDY

Significance of study is important for the retail companies. Who fail or lack in

customer loyalty program in convenience store. It is to study that how the loyalty

programs attract to the customers and effects of loyalty program on customers.

For to study the following objectives:

To study the Customer Loyalty Programs in different conveniencestores.

To know that how they attract to the Customers for purchasing in theconvenience stores.

To know the Effect of Loyalty program on customers.

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OBJECTIVES OF STUDY

The main objective of any kind of research is to understand the reality behind a

phenomenon. It involves a systematic investigation involved to add to the available

information through scientific procedures.

To study the Customer Loyalty Programs in different convenience stores.To know that how they attract to the Customers for purchasing in the

convenience stores.

To know the Effect of Loyalty program on customers.

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REVIEW EXISITING LITERATURE

The literature review section examines recent (or historically significant)

research studies, company data or industry reports that act as a basis for theproposed study.

Source 1:

Airtel to reward customer loyalty (Tanzania) - Wireless Federation:

Publication Date: February 17, 2012

Airtel to reward customer loyalty (Tanzania)Wireless FederationAirtel introduced

a new campaign to reward its loyal customers. The new campaign named as Nani

Mkali (who's the best) will be operational for three months. Through Nani MKali

campaign, Airtel customers will be rewarded with cash prizes.

Source-2:

ASSOCHAM: Designer Wear ready for major growth:

Publication Date: 02-Jul-2012

The ASSOCHAM (Associated Chambers of Commerce & Industry) has predicted

an exponential growth in the designer wear industry in India by the end of the

decade! According to a report entitled Trend in Indian Designer Wear Industry

commissioned by them, the current domestic market of Rs700 crores will rise to

Rs 11,000 crores by the year 2020. This works out to a stupendous CAGR of 40%.

The report indicates that the growth drivers are higher disposable income, the

prevailing mall culture and growing awareness about fashion even in Tier 2 and 3

towns. The global designer wear industry, currently at Rs2.2 lakh crores is

growing at a CAGR of 12%. Of this India share is a minimal 0.32% but is likely to

grow to 1.7% by 2020.

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SOURCE-3:

Major changes at Pantaloon Retail:

Publication Date: 14-Feb-2012

Kailash Bhatia, a whole time director at Pantaloon Retail has stepped down from

the Board. He will, however, continue as CEO of the Fashion Business. The

Company is reeling under a huge debt of Rs 4,200 cr. This has prompted the

Company to look at major restructuring, strategic partnerships and divestments. In

recent times, Future Group has lost four senior professionals including Pankaj

Tibrewal, COO Pantaloon Retail, who has moved to HT Media; Mayur Toshniwal,

CEO of Future Telecom, now turned entrepreneur; Manoj Kumar, CEO eZone,

electronics division of Future Group, and Mahesh Shah, head of sourcing of Home

Town, home retail division of Future group, joined Landmark Groups LifeStyle.

Future Group has reappointed family member, Rakesh Biyani as joint MD with

effect from 1st April, 2012.

Source-4:

Trent closes down Fashion Yatra, re-looks at Sisley:


The Tata groups retail arm, Trent has decided to close down its loss making chain,

Fashion Yatra. Currently there are five stores located at Kalyan, Ujjain, Nanded,

Sangli and Hyderabad. Launched in Oct 2008, the chain targets low income

shoppers in Tier 24 towns. Trent has also been slow in the expansion of Sisley

an upper end fashion chain under license from Benetton of Italy.

It has fallen far short of the 20 store targeted in the first five years (from 2007).

The future of this chain is being re-evaluated and is still uncertain.

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Source-5:

Airport retailing takes off in Delhi:


Airport retailing in India seems to be finally taking off with stores at Delhis IGI

reporting Rs 1200cr of sales last year making it the fourth largest retail hub in the

country. The positive results have been announced by Swarovski, Marks &

Spencer, Samsonite, Hidesign and Kimaya. The latter claimed that their airport

store recorded the best sales figure in their chain last year with sales of 5,000 per

sq.ft. per month. Swarovski's outlet at the T3 terminal of the Delhi airport now

ranks among its top stores by sales globally. One of the reasons, attributed to the

success of these stores is that the Delhi airport is the largest and busiest airport in

South Asia with more than 35 million passengers using it last year.

Source-6:

Apple looking at opening stores in India:

Publication Date: 30-Jan-2012

Reportedly, Apple Inc has been talking to the Department of Industrial Policy &

Promotion (DIPP) to obtain permission for opening a chain of exclusive stores.

This is now possible with the Government permitting 100% FDI in single brand

retail outlets. However, this comes with a rider that 30% of the merchandise value

would be sourced from small and cottage industries in India. This may be a hurdle

which will have to be addressed. Currently Apple exclusive Apple stores are run

by franchisees, Imagine and iStore (owned by Reliance Digital)

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Source-7:

With over 40 Reliance Fresh stores:

Publication Date: January 30, 2007

With over 40 Reliance Fresh stores already launched in Chennai, Hyderabad and

Jaipur, Reliance Retail began its assault of the National Capital Region market

with the recent opening of nine new stores in Ghaziabad, Noida, Faridabad and

Gurgaon.

The company is targeting to open 100 more Reliance Fresh stores in New Delhi

alone within four months, and a 1,000 new stores in 35 cities nationwide by the

end of the year with a built-up area of over 4 million sq.ft. An investment of

Rs.8,000 crore is envisaged for the NCR region alone.

Reliance Fresh stocks fresh fruits and vegetables, staples, fast moving consumer

goods and dairy products. The stores are already selling over 1,000 tonnes of fresh

produce daily and also 250 categories of commodities.

Source-8:

Reliance Retail opens its new Mart in Jamnagar:

Publication Date: FEB. 1 2008

In an event devoid of its characteristic pomp, Reliance Retail on Wednesday

opened its second retail outlet Reliance Mart in Jamnagar.

The Jamnagar outlet is spread over 83,000 sq feet and after the second phase, the

total area will be close to 3 lakh square feet, almost double of its Ahmedabad

stores which have come up over 1.65 lakh square feet.

The company is keen to take faster strides in the growing retail sector in Gujarat

by opening numerous hyper marts including one in the IPCL campus at Vadodara.

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FOCUS OF PROBLEM

Till a few years ago the American economy fuelled economic growth in many

parts of the world. However the recent economic slowdown there has forced many

retailers to start looking at other economies. Rising fuel prices have also had a

negative effect on the rapid expansion of the trade in various parts of the world.

Retailers at a global level are reality which has to be understood and faced by

retailers.

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CONCEPTUALISATION

Loyalty:

A deeply held commitment to rebuy or repatronize a preferred product/service

consistently in the future, thereby causing repetitive behaviour reflecting purchase

of the brand despite situational influences and marketing efforts having the

potential to cause a switching behavior. loyalty is, in simpler terms, a reliance on

a particular brand or company even though numerous satisfactory alternatives may

exist. Loyalty helps build relationships.

What is Customer Loyalty?

Customer loyalty is all about attracting the right customer, getting them to buy,

buy often, buy in higher quantities and bring you even more customers. However,

that focus is not how you build customer loyalty.

You build loyalty by

Keeping touch with customers using email marketing, thank you cards andmore.

Treating your team well so they treat your customers well.Showing that you care and remembering what they like and dont like.You build it by rewarding them for choosing you over your competitors.You build it by truly giving a damn about them and figuring out how to

make them more success, happy and joyful.

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In short, you build customer loyalty by treating people how they want to be

treated.

The loyalty business model is a business model used in strategic management inwhich company resources are employed so as to increase the loyalty of customers

and other stakeholders in the expectation that corporate objectives will be met or

surpassed.

The term customer loyalty is used to describe the behavior of repeat customers,

as well as those that offer good ratings, reviews, or testimonials. Some

customers do a particular company a great service by offering favorable word of

mouth publicity regarding a product, telling friends and family, thus adding them

to the number of loyal customers

Customer loyalty can be achieved in some cases by offering a quality product with

a firm guarantee. Customer loyalty is also achieved through free offers, coupons,

low interest rates on financing, high value trade-ins, extended warranties, rebates,

and other rewards and incentive programs. The ultimate goal of customer loyalty

programs is happy customers who will return to purchase again and persuade

others to use that company's products or services. This equates to profitability, as

well as happy stakeholders.

Another good incentive for achieving customer loyalty is offering a risk free trial

period for a product or service. Also known as brand name loyalty, these types

of incentives are meant to ensure that customers will return, not only to buy the

same product again and again, but also to try other products or services offered by

the company
http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Strategic_managementhttp://www.wisegeek.com/what-are-loyalty-programs.htmhttp://www.wisegeek.com/what-are-loyalty-programs.htmhttp://www.wisegeek.com/what-is-profitability.htmhttp://www.wisegeek.com/what-is-profitability.htmhttp://www.wisegeek.com/what-are-loyalty-programs.htmhttp://www.wisegeek.com/what-are-loyalty-programs.htmhttp://en.wikipedia.org/wiki/Strategic_managementhttp://en.wikipedia.org/wiki/Business_model

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Hypothesis Testing:

Test: Chi square is the most appropriate test.

Level ofNull hypothesis: H0 Alternative hypothesis: H1

H0= There is no significance association between Age and Switching the

preference of convenience store

H1= There is significance association between Age and Switching the preference

of convenience store.

Statistical significance () = 5% level (Table value9.488)

Degree of freedom= (r-1) (c-1) = (5-1)(2-1)= 4

2= (F0-Fe)2/Fe

Critical test value: For =0.5 and d.f = 16, the critical test value is 6.9739

Table 2 Classification of Age and switching the preference of convenience

store

Age/ Factors Yes No Total

15-20 1 3 4

20-25 6 5 11

25-30 12 2 14

30-35 4 1 5

35-40 2 2 4

Total 25 13 38

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Solution:let us take the hypothesis that there is no association between age and

switching of convenience store preference. On the basis of this hypothesis the

expected frequencies corresponding to (a) and (b) are:

11= 25*4/38=2.63

12= 13*4/38=1.36

Table 2.1 Expected frequency

2.63 1.36

7.23 3.76

9.21 4.78

3.28 1.71

2.63 1.36

Table 2.2 Applying X2test:

O E (O-E)2

(O-E)2

/E

1 2.63 2.6569 1.0102

6 7.23 1.5129 0.2092

12 9.21 7.7841 0.8451

4 3.28 0.5184 0.1580

2 2.63 0.3969 0.1509

3 1.36 2.6896 1.9776

5 3.76 1.5376 0.4089

2 4.78 7.7284 1.6182

1 1.71 0.5041 0.2947

2 1.36 0.4096 0.3011

Total CV 6.9739

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Source: Field response data

X2= (O-E)

2/E= 6.9739

V= (r-1) (c-1) = (5-1) (2-1) = 4

For V=4, X20.05= 9.488.

The calculated value of X2 is less than table value. The hypothesis is accepted.

Hence, there is no association between age and switching the preference of

convenience store.

Interpretation:

Hypothesis testing is showing that there is no relationship between Age and

Switching of preference convenience store. So any person can switch their brand

choice.

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CHAPTER 2INTRODUCTION TO

Customerloyality

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INTRODUCTION

Customer loyalty is the practice of finding, attracting, and retaining your

customers who regularly purchase from you. It is different from customer

satisfaction. Customer satisfaction is the basic entry point of good business

practices. Loyalty cards and programs have their rewards and pitfalls. Rewarding

customers for spending more Rupees can create a vicious cycle of creating

customers who want rewards and will look anywhere to obtain them. With loyalty

cards and programs reaching a saturation point. Software, card programs, and

loyalty schemes are the tools of customer loyalty programs but they aren't theessence of loyalty. To build loyalty, you must earn it. Look at these 8 ways to earn

more customer loyalty for business.

Managing Customer Loyalty

What you cant measure you cant manage, Peter Drucker, management guru, has

said. But measuring the behavior of individual customers, and relating it to the

behavior of all your other customers soon becomes an impossible task as your

customer base expands.One-to-one knowledge is important (and part of Loyalty

Builders analysis). But while customers appreciate being treated as individuals,

they nearly always have common needs. If youre not able to segment your

customer base in terms of characteristics they share, you have virtually no hope of

creating an efficient, affordable marketing program. Measurement, traditionally,

has meant dividing a population into separate buckets based on demographics

and attitudes. Loyalty Builders' methodology, however, segments customers by

behavior and generates quantitative measures of loyalty based on that behavior.

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How loyalty can be implemented

Five steps listed below:

Step 1: Observation

This is the stage of accumulating all information possible about customers from

many disparate sources, including:

Purchase records and history Costs associated with servicing each customer Demographic information The shareofWallet or of spending that each customer gives.

Step2: Calculating inertial CLV (Customer lifetime value)

Determining contribution to profit from each customer (projected purchases minus

anticipated costs of serving), It is called as inertial CLV as the figure represents the

current status. At the same time it provides a convenient metric by which

customers can be segmented for the next step.

Step 3: Selection

After using the inertial CLV the customers are differentiated into three customer

types like the Desired Customers, Breakeven Customers and costly Customers.

The ratio of costly customer should not be more than 15% in the organization;

otherwise it may affect the bottom line. So there has to be good balance between

these three categories of customers to maintain a good financial health of the

organization.

Step 4: Prioritization

In this stage company should divide each of these three customer groups in to pairs

like low share of spending and high share of spending and determine which

customers to focus for developmental efforts after knowing their share of current

spending.

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The strategies followed in this stage are as:-

Improving companies financial gains by reducing servicing costfor low-sharecostly customers and moving them to the status oflow-share break-even customers.

Improving financial condition of the company by increasing low-share costly customers share of spending and by advancing them

to high- share Breakeven Customers.

Improving financial condition of the company by controllingoffers for low-share Break-even customers, reducing servicing

costs and moving them to low- share Desired Customers.

Improving financial condition of the company by increasingshare- ofspending and controlling servicing cost of low-share

Break-even customers and advancing them to high-share Desired

Customers.

Improving financial condition of the company by increasing theshare of spending of low-share Desired Customers and evolving

them into high-share Desired Customers.

Step 5: Leveraging

In the above each strategy requires moving as many customers as possible from

one status to another, but still there are some leveraging tools which must be taken

into consideration like brand equity, value equity, relationship Equity and

satisfaction. Attitudes of customers towards brand, its communications, its

associations with community events etc. constitute brand equity.

Similarly perceptions about quality, price and convenience constitute value equity.

Various types of loyalty program comprise relationship equity and satisfaction

with the brand make up satisfactionthese are the leveraging tools.

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Ten ways to build customer loyalty:

1. Communicate - Whether it is an email newsletter, monthly flier, areminder card for a tune up, or a holiday greeting card, reach out to yoursteady customers.

2. Customer Service - Go the extra distance and meet customer needs.Train the staff to do the same. Customers remember being treated well.

3. Employee Loyalty - Loyalty works from the top down. If you are loyalto your employees, they will feel positively about their jobs and pass

that loyalty along to your customers.

4. Employee Training Train employees in the manner that you wantthem to interact with customers

5. Customer Incentives Give customers a reason to return to yourbusiness. For instance, a dentist may give a free cleaning to anyone who

has seen him regularly for five years.

6. Product Awareness Know what your steady patrons purchase andkeep these items in stock.

7. Reliability - If you say a purchase will arrive on Wednesday, deliver iton Wednesday. Be reliable.

8. Be Flexible - Try to solve customer problems or complaints to the bestof your ability.

9. People over Technology - The harder it is for a customer to speak to ahuman being when he or she has a problem, the less likely it is that you

will see that customer again.

10.Know Their Names - Get to know the names of regular customers or atleast recognize their faces.

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Global Retail Market

The emergence of the global marketplace and the rise of the 24/7 economy has

fuelled the growth of retail across the world. The global retailing industry asunderstood under the global industry classification standard (GICS) grew by 5.5%

in 2004 to touch $9498.5 billion. The compounded annual growth rate for the

period 2000-2004 was 3.9%.

The United States of America dominates the world retail market space and

accounts for 32.3% of the global retailing group. Europe generates a further 30.8%

of the groups value, Asia Pacific 25.6% and the rest of the world 11.20%.

By the year 2009, the industry is forecasted to have a value of $12104 billion; an

increase of 27.4% since 2004.It is interesting to note that the key 250 retailers in

the world alone accounted for $2.6 trillion, which itself is about one third of the

marketplace in retail.

The significance of retail is apparent not only from its contribution to various

economies but also by the level of employment generate by the industry. In India

where organized retail is just beginning to make its presence felt it already

contributes close to 6-7% of the employment.

Challenges facing global retailers:

Till a few years ago the American economy fuelled economic growth in many

parts of the world. However the recent economic slowdown there has forced many

retailers to start looking at other economies.

Rising fuel prices have also had a negative effect on the rapid expansion of the

trade in various parts of the world. Retailers at a global level are reality which has

to be understood and faced by retailers.

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Retail Industry in India

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP

and around eight per cent of the employment. Retail sector is one of India's fastestgrowing sectors with a 5 per cent compounded annual growth rate. India's huge

middle class base and its untapped retail industry are key attractions for global

retail giants planning to enter newer markets.

Driven by changing lifestyles, strong income growth and favorable demographic

patterns, Indian retail is expected to grow 25 per cent annually. It is expected that

retail in India could be worth US$ 175-200 billion by 2016.

The organized retail industry in India had not evolved till the early 1990s. Until

then, the industry was dominated by the un-organized sector. It was a sellers

market, with a limited number of brands, and little choice available to customers.

Lack of trained manpower, tax laws and government regulations all discouraged

the growth of organized retailing in India during that period. Lack of consumer

awareness and restrictions over entry of foreign players into the sector also

contributed to the delay in the growth of organized retailing.

Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon

Retails India Limited (PRIL). Following Pantaloon's successful venture a host of

Indian business giants such as Reliance, Bharti, Birla and others are now entering

in the market. A number of factors are driving India's retail market. These include:increase in the young working population, hefty pay-packets, nuclear families in

urban areas, increasing working-women population, increase in disposable income

and customer aspiration, increase in expenditure for luxury items, and low share of

organized retailing.

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Indias retail boom is manifested in sprawling shopping centers, multiplex- malls

and huge complexes that offer shopping, Entertainment and food all under one

roof. But there is a flip side to the boom in the retail sector.

It is feared that the entry of global business giants into organized retail would

make redundant the neighborhood kiryana stores resulting in dislocation in

traditional economic structure

Challenges to retail development in India

Organized retail in India is little over a decade old. It is largely an urban

phenomenon and the pace or growth is still slow.

Some of the reasons for this slow growth are:

Retail not being recognized as an industry in India- Lack of recognition as an

industry hampers the availability of finance to the existing and new players. This

affects growth and expansion plans.

The high costs of real estate- Real estate prices in some cities in India are among

the highest in the world.

High stamp duties- The problem is compounded by problems of clear titles to

ownership, while at the same time land use conversion is time consuming and

complex as are the legal processes for settling of property disputes.

Lack of adequate infrastructure- Poor roads and the lack of cold chain

infrastructure hamper the development of food and fresh grocery retail in India.

Multiple and complex taxation system- the sales tax rates vary from state to state

while organized players have to face a multiple point control and tax system there

is considerable sales tax evasion by small stores.

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COMPANY PROFILE

Convenience Stores

These are relatively small stores located near residential areas- they are open for

long hours seven days a week and offer a limited line of convenience products like

eggs, bread, milk, etc. The food marketing institute defines this format as a small

local store selling mainly groceries, open until late at night or even 24 hours per

day and is something abbreviated to c-store. The store ranges from 3000 to 8000

sq ft and they are targeted at customers who want to make their purchases quickly.

Retailing involves understanding customers, their needs and expectations.

Retailers job is to stimulate customers to visit his store and buy product.Promotions are often used as pull strategy to encourage purchase, but guaranteeing

product availability during promotions has proved to be challenging task for many

retailers.

The key advantages of convenience stores in India are:

India ranks 5th on global retail development index. India is the 2nd fastest growing economy of the world. India is poised to become the 3rd largest economy in terms of

GDP in next few years.

India ranks high among the top 10 FDI destinations of the world. India is the fastest growing tourist market in Asia.

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World Bank states that India will become the world's 2nd largesteconomy after China by 2050.

India has a stable and investor-friendly central government at thehelm of affairs.

It has introduced Value Added Tax (VAT) and tax reforms. It has a high degree of professionalism and corporate ethics. It has excellent investment opportunities in the retail sector and

allied markets.

India is to invest US$ 130 billion for the development ofinfrastructure by 2010.

India will attract US$ 10 billion FDI for infrastructuredevelopment by 2008.

It has bullish stock markets.Hordes of foreign investors are thronging in to invest in Indian

retail markets.

Highly educated, English speaking, young workforce.Vibrant and multi-cultured cities.Huge opportunity exists in semi-rural and rural areas.Till date, India is the 2nd largest employer for the huge semi-

skilled Indian population.

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Reliance Fresh

Reliance Fresh is the retail chain division of Reliance Industries of India which is

headed by Mukesh Ambani. Reliance has entered into this segment by opening

new retail stores at Hyderabad on 3 November 2006. Reliance plans to invest

25000 crores in the next 4 years in their retail division and plans to begin retail

stores in 784 cities across India.

The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it

plans to add more stores across different g, and eventually have a pan-India

footprint by year 2011. The super marts will sell fresh fruits and vegetables,

staples, groceries, fresh juice bars and dairy products and also will sport a separate

enclosure and supply-chain for non-vegetarian products.

Besides, the stores would provide direct employment to 5 lakh young Indians and

indirect job opportunities to a million people, according to the company. The

company also has plans to train students and housewives in customer care and

quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in

Chennai, New Delhi, Hyderabad, Jaipur, Mumbai, Chandigarh, Ludhiana

increasing its total store count to 40. Reliance is still testing its retail concepts by

controlled entry beginning in the southern states.
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Hyderabad,_Andhra_Pradeshhttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Ludhianahttp://en.wikipedia.org/wiki/Ludhianahttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Hyderabad,_Andhra_Pradeshhttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Chennai

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Reliance Retail has decided to minimize its exposure in the fruit and vegetable

business and position Reliance Fresh as a pure play super market focusing on

categories like food, FMCG, home, consumer durables, IT, wellness and auto

accessories, with food accounting for the bulk of the business. This is quite

different from what the firm had originally planned. Reliance may exit some

businesses if the business does not increase by March 2008.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trends, Reliance

Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance

Super are various formats that Reliance has rolled out. RIL has already said that it

will invest close to Rs 25,000 crore over the next five years in the retail business.

The company plans to establish 4,000 retail outlets across various formats by then,

and is eyeing sales of Rs 1,00,000 crore over the five-year period from the retail

business. Besides Reliance Fresh, the company also plans to launch larger format

stores called "Feel Fresh Plus" which will be spread over 10,000-15,000 sq ft.

The retail rush

11 Reliance Fresh neighbourhood convenience stores will belaunched first in Hyderabad.

These stores will be set up soon in Mumbai and Delhi whereReliance has identified up to 80 locations each.

RIL is also setting up Ranger Farms -- outlets that willspecifically service vegetable vendors.

Ranger outlets will open at 2 a.m. and continue selling produce tovendors till 9 a.m.

Company plans to establish 4,000 retail outlets across variousformats in the country.

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History

After launch, in a dramatic shift in its positioning and mainly due to the

circumstances prevailing in UP, West Bengal and Orissa, it was mentioned

recently in news dailies that Reliance Retail is moving out of stocking fruits and

vegetables.

Reliance Retail has decided to minimize its exposure in the fruit and

vegetable business.

The company may not stock fruit and vegetables in some states. Though Reliance

Fresh is not exiting the fruit and vegetable business altogether, it has decided not

to compete with local vendors partly due to political reasons, and partly due to its

inability to create a robust supply chain. This is quite different from what the firm

had originally planned.

When the first Reliance Fresh store opened in Hyderabad last October, not only

did the company say the stores main focus would be fresh produce like fruits and

vegetables at a much lower price, but also spoke at length about its farm-to-fork"theory.The idea the company spoke about was to source from farmers and sell

directly to the consumer, removing middlemen out of the way.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance

Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance

Super are various formats that Reliance has rolled out.

In addition, Reliance Retail has entered into an alliance with Apple for setting up a

chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

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COMPANYS MISSION AND VISION

Growth through Value Creation

With a vision to generate inclusive growth and prosperity for farmers, vendorpartners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a

subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail.

Reliance Retail continued to expand presence of its value and specialty formats.

During the year, Reliance Retail opened 90 new stores spanning across 'value' and

'specialty' segments. In-store initiatives, wider product choice and value

merchandising enabled the business to achieve robust growth during this period.

Products & Brands

The Company expanded into textiles in 1975. Since its initial public offering in

1977, the Company has expanded rapidly and integrated backwards into other

industry sectors, most notably the production of petrochemicals and the refining

ofcrude oil.

The Company from time to time seeks to further diversify into other industries.

The Company now has operations that span from the exploration and production

of oil and gas to the manufacture of petroleum products, polyester products,

polyester intermediates, plastics, polymer intermediates, chemicals and

synthetic textiles and fabrics.

The Company's operations can be classified into foursegments namely:

Petroleum Refining and Marketing business Petrochemicals business Oil and Gas Exploration & Production business Others

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The Company has the largest refining capacity at any single location.

The Company is:

Largest producer of Polyester Fibre and Yarn 5th largest producer of Paraxylene (PX) 5th largest producer of Polypropylene (PP) 8th largest producer of Purified Terephthalic Acid (PTA) and Mono

Ethylene Glycol (MEG)

Growth through Recognition

Reliance has merited a series of awards and recognitions for excellence for

businesses and operations.

Leadership

Mukesh Ambani, Chairman & Managing Director, RIL, has been nominatedto a 'key advocacy group of Millennium Development Goals', whose

mandate includes finding ways to fight socio-economic evils such as

poverty, by the United Nations in 2010.

Mukesh Ambani has been re-elected as Vice Chairman of the BusinessCouncil for Sustainable Development's (WBCSD) Executive Committee for

a second consecutive term in 2010.

The Foundation Board of the World Economic Forum (WEF) electedMukesh Ambani on its Board. WEF's mission is to improve the state of the

world and the elected board members make valuable contributions to this

mission through their involvement.

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Mukesh Ambani received the prestigious 'Dwight D Eisenhower GlobalLeadership Award' at the Business Council for International

Understanding's Annual Global Awards Gala in 2010.

The Asia Society, New York presented the 'Global Vision Award' toMukesh Ambani, honoring global leaders who help promote understanding

between Asians and Americans in 2010.

Mukesh Ambani received the NDTV Profit Business Leadership Award2010 from the Finance Minister, Government of India in 2010.

The senior editors of Financial Chronicle unanimously voted Shri MukeshAmbani as 'Businessman of the Year for 2010'.

Retail

Reliance Footprint received the Retailer of the Year Award in the Non

Apparel and Footwear category at Asia Retail Congress 2010.

Reliance TimeOut received the Retailer of the Year Award in the LeisureCategory at Asia Retail Congress 2010.

Vision Express was bestowed the 'Award 2010' for its contribution by theNetherlands India Chamber of Commerce and Trade in 2010.

Reliance Trends received the 'Retail Marketing Campaign of the YearAward' at the Asia Retail Congress 2010.

Reliance Trends received the 'Impactful Retail Design and VisualMerchandising of the Year Award' at the Asia Retail Congress 2010.

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Loyalty programmes in Reliance fresh

1. Membership card

2 Purchase offers

3. Mobile service

4. Insurance facility

5. Home Delivery

6. Feedback facility

1. Membership card: Provide membership card under the name of Reliance One. By

using this card, for every Rs 100/- that you spend, you earn 1

reliance point .

You can redeem your points once you accrued a minimum of25points.

Reliance One membership card provide accident insurance for Rs50000/- absolute free.

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2. Purchase offers :Various purchase offers are provided by Reliancefresh.

Extra value: Buy two products get some free products.

Value added: This is the scheme provide by Reliance fresh to produce

companies own product such as Reliance fresh milk, Atta etc.

3. Mobile service: If customer recharges their mobile in RF than they getreward point.

4. Insurance facility: Reliance Retail Insurance Broking Ltd. Provide 2wheeler insured. It covers Loss or damage to vehicle due to natural

calamities, manmade calamities, personal accident cover, and third party

legal liability.

5. Home Delivery: RF also provides home delivery facility to theircustomer.

6. Feed Back Facility: RF also concentrates on their service so they easyfeedback policy.

7. Advertisement likes: Pamphlets, Banners, and Newspapers.8. Discount Schemes: Product Based discount schemes and Day-to-Day

discount schemes.

9. Gifts to the Customer: RF also provides free gifts facility to theircustomer.

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RESEARCH METHODOLOGY

Market research design : Descriptive cum Exploratory

Data source : Primary & secondary

Research approach : Survey method

Research instruments : Questionnaire

Types of question : Close as well open ended,

Likert Scale, Ranking Scale

Sample size : 40 samples

Mode of data collection : Respondents to be chosen randomly.

(Random Sampling)

Sample Size

A sample size of 40 people was selected to do this project, which was random

sampling keeping in mind the basic criteria.

Field Work

The research was done for a period of two week in which convenience stores were

covered in gurgaon. Then I collected data from the respondents.

Statistical Tools

In my research, I used some statistical tools like: hypothesis, ranking scale, Likert

scale, table, & graph, etc. I used hypothesis for to know the association betweenage and switching of brand preference. Table & graph used for analysis of data.

Research Design

Research design is the plan for a study that will lead to the most economical

method for collection of the required data and their analysis. The present study is

descriptive cum exploratory in nature, for it seeks to discover the ideas and

insights and to bring out new relationships.

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Sample Design

In most of the research studies, the amount of work is always limited by shortage

of time and resources within these limitations, for the present study the sample is

selected stratified random sample.

Data Collection Method

In fact, the data collection is a basic step and of vital importance, on which success

or failure of the study depends. All marketing researchers can adopt two sources

for investigation.

a) Primary datab) Secondary data

In this present study, we have used the method of primary and secondary data

collection. I collect data with the directly response of respondents. The survey

technique is used to collect the data through observation method personal

interview & telephonic interview.

Used method for data collection:

Questionnaire method: The questionnaires used by me for the purpose of data

collection were of structured type (Non-disguised).

Contact method: In order to derive information for the intendedCompany, it was

elementary for me to search for a link which could enable me to conduct a research

in that company.

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CHAPTER- 6

DATA ANALYSIS

AND

INTERPRETATION

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SWOT ANALYSIS

SWOT analysis - an analysis of strengths and weaknesses of the organization and

the opportunities and threats from the external environment.

S and W relate to the company, and O and T to the external

environment of the organization.

According to the results of situation analysis can be assessed, whether the

company internally and resources to realize the opportunities and confront

threats, and what internal weaknesses require early removal.

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Strengths

The "Strengths" portion of the banking industrys SWOT analysis is a list of the

internal operational elements where the banking industry is succeeding or

excelling. These elements need to refer to features the industry can control and has

a direct power to change.

For example, the banking industrys strengths can include record-high annual

returns, diversified investment portfolio offerings, decreases in transaction and

trading fees, an increase in the number of ATM machines and increased market

share.

Weaknesses

The "Weaknesses" element of the banking industrys SWOT analysis is a list of

the internal operational elements the banking industry needs to improve upon.

These elements need to refer to features the industry can control and has a direct

power to change.

For example, the banking industry's weaknesses can include high loan rates, low

bond credit ratings, an increased number of outstanding junk bonds, an increase in

loan-sharking activity and an increased number of high-risk investment options.

Opportunities

The "Opportunities" part of the banking industrys SWOT analysis is a list of the

external environmental elements the banking industry can potentially take

advantage of in the near future or long-term. These external environmental

elements should not reflect the internal components of the industry, but rather the

factors or features outside the industrys control.

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For example, the banking industrys opportunities can include a growing

economy, banking deregulation, increased client borrowing, an increase in the

number of banks, an increase in the money supply, low government-set credit rates

and larger customer checking account balances.

Threats

The "Threats" component of the banking industrys SWOT analysis is a list of the

external environmental elements that can potentially harm the banking industry.

These external environmental elements do not reflect the internal components of

the industry, but the factors or features outside the industrys control.

For example, the banking industrys threats could include a declining economy,

increased banking regulations, larger capital gains taxes, new high-risk investment

vehicles or higher health care costs.

PESTE-ANALYSIS

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THE MACRO-ENVIRONMENT

A commonly used method of quantifying the macro external environment is with a

PEST analysis. PEST is an acronym which divides the macro-environment intofour areasPolitical, Economic, Social, and Technological, examples of which are

shown below.

Political environmental factors:

Trading agreements

Tax rules Employment regulation Environmental legislation Legal issues

Economic environmental factors:

Recession

Interest rates Exchange rates Rate of inflation Population wealth Growth of the housing market

Social environmental factors:

'Green' behavior Eating habits Shifts in attitude Population demographics Attitudes to career

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Technological environmental factors:

Emergence of new communications channels

Improved production processes Advances in computing and the internet New technologies such as electric vehicles Automation Reduced cost of materials

MICRO-ENVIRONMENT

The micro-environment includes factors which are still not directly under the

control of the company, but more directly relevant to strategy such as consumer

trends, stakeholders, suppliers and competitors. Some example items are listed

below.

Summary of your market segment Market growth, trends and competition Potential new markets Direction from shareholders Supplier costs and service quality

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QUESTIONNAIRE ANALYSIS

1. Do you know about any convenience store i.e. Reliance fresh &Subhiksha?

Table 1.1 Awareness of convenience stores

Response Respondents Percentage

YES 38 95%

NO 02 5%


Graph 1.1 Awareness of convenience stores

Interpretation: The awareness level of convenience stores in gurgaon is very

good and now most of the people aware about the convenience store. The 95%

people aware about the convenience stores.

95%

5%

YES

NO

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2. Have you purchased any product from any convenience stores?Table 1.2 Use of Product


YES 38 100%

NO 00 00%


Graph 1.2 Use of Product

Interpretation: In the research the 38 or 100% respondents gave positive

response. They all brought product from convenience stores.

100%

0%0%

20%

40%

60%

80%

100%

120%

YES NO

Series1

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3. What attributes did attract you to purchase product from convenience

stores?

Table 1.3 Influences of Attributes

Attribute Rank1 Rank2 Rank3 Rank4 Rank5

Price 5*1=5 5*2=10 16*3=48 9*4=36 3*5=15

Schemes 11*1=11 13*2=26 4*3=12 10*4=40 1*5=5

Quality 17*1=17 10*2=20 5*3=15 5*4=20 1*5=5

Easy Availability 4*1=4 10*2=20 10*3=30 9*4=36 5*5=25

Shop Display 2*1=2 0*2=0 2*3=6 4*4=16 30*5=150


Attributes Total Rank

Price 109 3

Schemes 94 2

Quality 77 1

Easy Availability 115 4

Shop Display 174 5

Interpretation: In this response I found that when the customer purchased

any product from convenience store then what attributes did attract to the

customer.

32

1

45

0

2

4

6

Price Schemes Quality Easy

Availability

Shop Display

Rank

Rank

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4. Do the Loyalty programmes influence the purchase decision?

Table 1.4 Influences of Loyalty Programmes


Graph 1.4 Influences of Loyalty Programmes

Interpretation: 87% people were agreed, 8% people were neutral and 5%

people were disagreeing. Most of response is positive.

Series1

Series20

0.1

0.20.3

0.4

0.5

Strongly

AgreeAgree

NeutralDisagree

Strongly

Disagree

40%47%

8%5%

0%

Series1

Series2


Strongly Agree 15 40%

Agree 18 47%

Neutral 03 08%

Disagree 02 05%

Strongly Disagree 00 00%

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5. Does Price influence on customer purchase decision in convenience store?

Table 1.5 Influences of Price



Agree 15 39%

Neutral 08 21%

Disagree 05 13%



Graph 1.5 Influences of Price

Interpretation: According to the survey about 60% of the respondent agree on

this fact and rest of the respondent said that the price is not an important

consideration while buying they look for quality, brand and loyalty program.

21% respondents were neutral because they dont consider the price when they

purchase and 19% were disagreeing.

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Strongly

Agree

Agree Neutral Disagree Strongly

Disagree

21%

39%

21%

13%

6%

Series1

Series2

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6. Do you think that membership cards create loyalty among thecustomers?

Table 1.6 Membership card Create loyalty



Agree 15 39%

Neutral 06 17%

Disagree 05 13%



Graph 1.6 Membership card Create loyalty


Interpretation: Membership card create loyalty among the customers. There 65%

respondents were agreed and 17% were neutral and 18% respondents were

disagreed because they think that membership card is not good tools of loyalty.

But most of the response was positive they were in favour with membership card.

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Strongly

Agree


Disagree

26%

39%

17%

13%

5%

Series1

Series2

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1. Does Quality effect on customer purchase decision in conveniencestore?

Table 1.7 Effect of Quality



Agree 10 26%

Neutral 09 24%

Disagree 03 08%

Strongly Disagree 03 08


Graph 1.7 Effect of Quality


0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Strongly

Agree


Disagree

34%

26%24%

8% 8%

Series1

Series2

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Interpretation: In the purchase decision quality of the product is one of the

important factors. But it was considered by customers with less positive response.

As date also shows that about 60% of the respondent either agree or strongly agree

on this aspect and 24% respondents were neutral because they think that quality

does not influence to the customers in convenience stores because they find same

quality in the another market and 16% respondents were disagree because they

think that these stores provide same quality like as another market.

2. Does the Discount schemes attract to the customers in conveniencestores?

Table 1.8 Influences of Discount Schemes



Agree 17 45%

Neutral 06 16%

Disagree 02 05%



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Graph 1.8 Influences of Discount Schemes


Interpretation: In the purchase decision discount schemes of the product is one of

the important factors considered by customers. As date also shows that about 89%

of the respondent either agree or strongly agree on this aspect. 16% respondents

were neutral and 5% were disagreeing. Positively respondents think that discount

provide products on reasonable price. And disagreed respondents think that firstly

they keep high price then they provide product on discount. So they are not

satisfied with this aspect.

3. Does the home delivery attract to the customers for purchase inconvenience store?

Table 1.9 Influences of Home delivery



Agree 16 42%

Neutral 06 16%

Series1

Series20

0.1

0.2

0.3

0.4

0.5

Strongly

AgreeAgree

NeutralDisagree

Strongly

Disagree

34%

45%

16%

5%

0%

Series1

Series2

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Disagree 05 13%



Graph 1.9 Influences of Home delivery


Interpretation: Home delivery is also influence the purchase decision. Because if

you get products on order in the home so it more attractive program among the

customers. There 68% respondent were with positive response. But 16%

respondents were neutral with this tool because they think that almost every

retailer provide home delivery facility and 16% respondents were disagree because

they think that they provide product at home but most of the time it do not meetthe order & requirement and then we have to accept to this product.

4. Does the Advertisement influence on customer purchase decision?Table 1.10 Influences of Advertisement



26%

42%

16%

13%3%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Agree 19 50%

Neutral 07 18%

Disagree 04 11%



Graph 1.10 Influences of Advertisement


Interpretation: According to our survey about 70% of the respondents said that

their purchase decisions were influenced by advertisement. In the purchase

decision advertisement of the product is one of the important factors considered by

customers. As date also shows that about 66% of the respondent either agree or

strongly agree on these aspect.18% respondents were neutral and 16% were

disagreeing. Positively respondents think that advertisement provides information

regarding products & price. And disagreed respondents think that most of the time

advertisements do not attract the customers.

5. Does Shop display attract to the customers for purchase inconvenience stores?

0 0.1 0.2 0.3 0.4 0.5

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

16%

50%

18%

11%

5%

Series2

Series1

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Table 1.11 Influences of Shop Display



Agree 11 29%

Neutral 14 37%

Disagree 08 24%



Graph 1.11 Influences of Shop Display


Interpretation: Shop display is important tool for to attract the customers.

Because these are structured and good looking stores. But in my research the

respondents did not give positive response with shop display. They said that now a

days shop display does not attractto the customers. Because now a days these are

normal and every retailer try to make good shop display. So there 37% respondents

8%

29%

37%

24%

5%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Strongly

Agree


Disagree

Series2

Series1

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were agreeing, 29% respondents were disagreeing and 37% were neutral. So they

do not prefer shop display.

1.

Does family members influence on purchase decision?

Table 1.12 Influences of Family Members



Agree 12 32%

Neutral 12 32%

Disagree 06 16%



Graph 1.12 Influences of Family Members


Interpretation: Family is the most important consumer-buying organization in

society. Family members constitute the most influential primary group. Influence

13%

32% 32%

16%

8%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Strongly

Agree


Disagree

Series2

Series1

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of family members in high involvement product category is not more According to

survey about 45% of the respondent said that their purchase decisions were

influenced by family members. So there family members are less interesting, and

they say that they dont take interest into choice of another. About 32%

respondents neither agree nor disagree on this point. And about 24% respondents

were not in fovour this aspect.

2. Influence of peer group on purchase decision in convenience stores?Table 1.13 Influences of Peer group



Agree 13 34%

Neutral 16 42%

Disagree 04 11%



Series1

Series20

0.1

0.2

0.3

0.4

0.5

Strongly

AgreeAgree

NeutralDisagree

Strongly

Disagree

13%

34%42%

11%

0%

Series1

Series2

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Graph 1.13 Influences of Peer group


Interpretation: Besides from the family members, our most of time spend with

our peer group. Our living style affected by the group to which we belong, and our

buying behavior is also influence by the friends and relatives. According to my

survey about 47% respondents said that peer group influenced their purchase

decisions. And especially in the case when a person did not have the sufficient

knowledge about the product or brand the influence is more. But 42% respondents

were neutral because they said that we purchase self according to their choice, so

the peer group does not influence the purchase decision. So like this 11%

respondent were disagree with this aspect.

3. Are you regular customer of any convenience store?Table 1.14 Regularity of the Customers


YES 20 53%

NO 18 47%


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Graph 1.14 Regularity of the Customers


Interpretation: Here 53% respondents were said that we are regular customer of

the convenience stores. But 47% respondents were said they are not regular

customer.

4. Which loyalty program influence to the customers for purchasing inconvenience stores?

Table 1.15 Preference of loyalty programmes

Factors/

Rank

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Membership

card

3*1=3 10*2=20 6*3=18 12*4=48 7*5=35

Discount

schemes

17*1=1 9*2=18 8*3=24 2*4=8 2*5=10

44%

45%

46%

47%

48%

49%

50%

51%

52%

53%

54%

YES NO

Series1

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Home

delivery

13*1=13 8*2=16 5*3=15 7*4=28 5*5=25

Purchase

offer

6*1=6 2*9=18 3*11=30 6*4=24 6*5=30

Customer

feedback

2*1=2 4*2=8 5*3=15 8*4=32 19*5=95

Factors Total Ranks

Membership card 124 4

Discount schemes 89 1

Home delivery 97 2

Purchase offer 111 3

Customer feedback 152 5


Preference of loyalty programmes

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Graph 1.15 Preference of loyalty programmes

Interpretation: In this response I studied that which loyalty program customer

prefer. They give first rank to discount schemes, then they prefer home delivery

they think that home delivery most influence to their purchase decision. Then they

prefer purchase offer, purchase offer also influence to the customer purchase

decision. Then fourthly they prefer membership card. Customers said that

membership cards is not effective tools because it is beneficial for regular

customer. One time customer cannot take benefit of this tool. So they prefer less

compare than other tools. At last they prefer customer feedback. Customer

feedback is also beneficial tools for loyalty if the convenience store take feedback

from the customers and then they consider their negative point it will be improve

the features of convenience store and will increase the regularity of the customers.

5. Will you like to switch your convenience store preference if you getsome promotional scheme with another brand in another market?

Table 1.16 Brand Preferences of convenience store


YES 25 66%

0 1 2 3 4 5

Membership card

Discount schemes

Home delivery

Purchase offer

Customer feedback

4

1

2

3

5

Ranks

Ranks

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NO 13 34%


Graph 1.16 Brand Preferences

Interpretation: In my research I found that 53% respondents are regular & 47%

respondents are not regular. If someone will provide different look from

convenience store then the customers will switch the convenience store preference.

66% respondents gave negative response if another will provide better product

than our preference then they will switch and 34% respondents said that they will

never switch the brand. They will prefer our convenience store.

Findings of the survey:

1. In this research I found that people are more aware regardingconvenience stores. Most of respondents give positive response they have

knowledge about convenience stores. (Table 1.1)

2. 87% people said that they influence with loyalty programmes. Loyaltyprogrammes influence to the customer for purchasing decision. (Table 1.4)

66%

34%

YES

NO

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3. People mostly prefer the quality of the product. In the loyaltyprogrammes firstly they want quality. After this they prefer other things like

price, discount schemes, home delivery. (Table 1.7)

4. Discount schemes most influence to the customers after than quality.They think that discount schemes more attract to the customers. But most of

the time they do not prefer discount. Because they get some extra benefit with

product.(Table 1.8)

5. Price does not more influence to the customers. Because they think thatprice does not matter if we are going in retail store for purchasing and they

also provide products on reasonable price.(Table 1.5)

6. The customers think that the shop display does not affect the purchasingdecision. It is not helpful for attracting to the customers. Customers think that

now it is common thing every retailer makes good shop display. So shop

display does not attract to the customers. (Table 1.11)

7. Easy availability also influences to the customers but it is not more.Because they think that most of the retailers provides every products on anytime.( Table 1.3)

8. Membership card create loyalty among the customers. This loyaltyprogram fully attract to the customers they responded me that they are strongly

agree with membership card. Because it extra saving of the customers.(Table

1.6)

9.

These stores mostly open in residential areas and they also provide homedelivery facility to the customers. So it most attractive loyalty program of

convenience stores. And mostly responded that mostly they influenced by

home delivery But many people said that they do not provide proper product

according to order.(Table 1.9)

10. In my research I found that mostly respondents said that theadvertisement does not influence to the customers. Because these companies

not display their ads. But sometime advertisement influence the purchase

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decision like as Discount ads, ads of purchase offer on special occasions,

etc.(Table 1.10)

11. Mostly people said that they are not strongly agreed with the influenceof family members. Because our family members do not force for purchase

decision. But most of the times they give advice for purchasing in convenience

store. So some people agree with this loyalty program.(Table 1.12 & 1.13)

12. Customer loyalty, not customer satisfaction, is key to the success of anorganization, and customer loyalty is fostered when an organization excels

along two dimensions:Design of its Products - including its Service Products ,

Operational Execution - or Conformance - to the Design.

13. Many companies focus on rewarding customers who have repeatpurchases. Such reward programs have their place in assuring customer

loyalty. However, if the product or service doesn't meet customer needs, no

reward program will keep them returning. For success in the long run, an

organization must: Continuously improve.

14. Quickly identify and resolve problems to the customer's satisfaction -- ormore Learning is the root of continuously improving design and execution, and

the life blood of learning is feedback. Strong, effective customer feedback

loops do not just happen. Structured, comprehensive research programs are

necessary to provide the data upon which to develop projects and initiatives to

improve customer loyalty.

Rewards Programs the key challenge in developing an effective rewards program

is researching the key elements that will drive loyalty. Many companies assume

those gifts will drive return purchases. That might prove to be a bad assumption.

SUGGESTION OF STUDY

1. Company should identify their customers for increasing the salesand for to make the loyal customer.

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2. Manage the customer selection before you manage customerretention.

3. Focus on share-of-wallet. Consumer polygamy is the rule thesedays.

4. Make sure that your loyalty efforts are mutually beneficial and nottilted too heavily in your favor.

5. Satisfied and loyal employees can help, but customer satisfactionand loyalty often happen without them.

6. Customer loyalty and brand imagery must be managed hand-in-hand.

7. Make effective discount schemes for the repurchase of theproducts. So that customers can make loyal of the company.

8. Loyalty programmes should be like that they can influence to thecustomers by peer group and family influence.

9. Loyalty should be extra beneficial for the family members so thatthey can influence to the customers.10. Home delivery is effective tool for retailer for increasing the sales.Should be providing something extra facility with home delivery like- credit

facility.

11. Customer feedback should be follow by the company for takingthe response regarding their products & services.

12.

Shop display is also attractive loyalty tool for increasingrepurchase. But these days nobody consider the shop display. Now should be

improve the shop display and make good structure of store.

13. Retailers should improve the more quality and provide goodquality on reasonable price.

14. Convenience stores should provide availability of every productso that customer can easily purchase. And also provide some extra variety of

products to the customers.

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15. More emphasis should be on promotional activities.16. The company should open more and more franchise in thecountry.

CONCLUSION

In this project I study to the customer response regarding the effect of customer

loyalty programmes in different convenience stores. There my objectives are

following:

1. To study the Customer Loyalty Programmes in differentconvenience stores.

2. To know that how they attract to the Customers for purchasing inthe convenience stores.3. To know the Effect of Loyalty program on customers.For to achieve these objectives I focused on company profile, customer loyalty

programmes of different convenience stores then I studied the loyalty programmes.

And study that programmes how does the work, what are the tools for the

customer loyalty. For to do this project I used the descriptive cum exploratory

research design, primary and as well as secondary data collection method,

questionnaire as a tool for to collect the primary data with the directly response of

the customers then I select the 40 respondents randomly and took their opinion

regarding loyalty programmes of convenience stores. I visited in gurgaon for

taking the response of respondents and I also visited at nearest convenience store

in Rohtak then I took information from the concern person of the store and I also

visited at cybercaf for collecting the secondary data. So here in this study I found

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that most of the respondents are aware about convenience stores and they have

purchased also from these stores. But due to this awareness I found some

limitations regarding loyalty programmes of stores and then I gave some

Suggestations with the help of questionnaire for to improve the loyalty of the

customers in convenience stores.

1. Do you know about any convenience store i.e. Reliance fresh &Subhiksha?

__________ Yes __________ No _________ dont know

2. Have you purchased any product from any convenience stores?__________ Yes _____________ No

3. What attributes did attract you to purchase product from conveniencestores? Please Rank these attributes.

_____ Price _____ Schemes _______Quality ______Easy Availability

_____ Shop Display.

4. Does Loyalty Program influence the purchasing decision?______Strongly Agree ______ Agree _______ Natural

______ Disagree ______Strongly Disagree

5. Does Price influence on customer purchase decision in conveniencestore?

______Strongly Agree ______ Agree _______ Natural


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6. Do you think that membership cards create loyalty among thecustomers?



7. Dose Quality effect on customer purchase decision in conveniencestore?



8. Does the Discount schemes attract to the customers in conveniencestores?



9. Does the Home delivery attract to the customers for purchase inconvenience stores?



10. Does the Advertisement influence on customer purchase decision?______Strongly Agree ______ Agree _______ Natural


11. Does the Shop display attract to the customers for purchase inconvenience stores?



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12. Influence of family members on purchase decision in conveniencestores?



13. Influence of Peer group on purchase decision in convenience stores?______Strongly Agree ______ Agree _______ Natural


14. Are you regular customer of any convenience stores?__________ Yes __________ No

15. Which loyalty program influence to the customers for purchasing inconvenience stores?

_____Membership card _____ Discount schemes _____Home Delivery

_____ Purchase offers _____ Customer feedback

16. Will you like to switch your convenience store preference if you getsome promotional scheme with another brand in another market?

__________ Yes __________ No

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