Date post: | 08-Nov-2014 |
Category: |
Documents |
Upload: | shareen-kulsum |
View: | 35 times |
Download: | 0 times |
A STUDY ON
“CUSTOMER EXPECTATIONS AND SATISFACTION TOWARDS
VISAKHAPATNAM CENTRAL”
A Project Report submitted in partial fulfillment of the Requirement for the degree of
MASTERS OF BUSINESS ADMINISTRATION
Submitted by
S MANIKANTA DUGGIRALA
ROLL NO-1225110341
MBA-C
Under the guidance of
I.BANGAR RAJU
GITAM INSTITUTE OF MANAGEMENT
GITAM UNIVERSITY
VISAKHAPATNAM
2011
1
CERTIFICATE
This is to certify that this report entitled “CUSTOMER
EXPECTATION AND SATISFACTION TOWARDS VISAKHAPATNAM
CENTRAL, VISAKHAPATNAM ” submitted by S.MANIKANTA
DUGGIRALA in partial fulfillment of the requirement for the award of the
Degree of Master of Business Administration, GITAM INSTITUTE OF
MANAGEMENT, Visakhapatnam is a bona-fide work carried out by him under
my guidance.
Date: I. BANGAR RAJU
Assistant Professor
Visakhapatnam GITAM Institute of Management
2
DECLARATION
I hereby declare that the project work submitted by me entitled
“CUSTOMER EXPECTATIONS AND SATISFACTION TOWARDS
VISAKHAPATNAM CENTRAL” to GITAM INSTITUTE OF
MANAGEMENT, GITAM UNIVERSITY; is carried out during the period from
May 2nd to15th June as a partial fulfillment for the award of degree of Master of
Business Administration (MBA).
I also declare that this project has not been submitted nor shall it be
submitted in future for the award of any other degree or diploma in part or full to
any other institution or university.
Place: Visakhapatnam
Date: (S MANIKANTA DUGGIRALA)
3
ACKNOWLEDGEMENTS
I would like to express my sincere gratitude to Prof. K. Siva Rama
Krishna, principal of GITAM INSTITUE OF MANAGEMENT,
Visakhapatnam, for giving the opportunity to work in this project.
I am thankful to the Vice Principal Prof. Mrs. Sheela for her continuous
support in completing the project I am grateful to Associate Professor K. Uma
Devi, Programme coordinator Department of MBA, for her valuable advice.
I take this opportunity to record my everlasting thanks and hearty feelings of
gratitude to my project guide, I. Bangar Raju, Assistant Professor, Gitam
Institute of management, Visakhapatnam for his constant encouragement and
guidance for the successful completion of the project work.
I would like to express my sincere gratitude to Mr. NEEL KAMAL,
Marketing Manager, Visakhapatnam central, Vizag for his valuable support
and guidance during the entire course of project work.
Visakhapatnam
Date: S MANIKANTA DUGGIRALA
4
CONTENTS
SECTION-1 THEORETICAL FRAMEWORK
a. Retailing 09b. Consumer Behavior 10
c. Customer satisfaction 11
SECTION-2 THE PRESENT STUDYa. Need of the study 13b. Objectives of the study 13c. Scope of the study 13d. Research design 14
SECTION-3 ORGANISATION PROFILEa. Industry profile 17b. Organization profile 22c. Topic profile in the organization 24
SECTION-4 ANALYSIS 32
SECTION-5 FINDINGS,SUGGESTIONS AND CONCLUSION 46
BIBLIOGRAPHY 51 ANNEXURE 52
5
LIST OF TABLES
No of visits of customers 34
Medium of awareness 35
Criteria for choosing Visakhapatnam central 36
Service offered by Sales representatives 41
Promotions in Visakhapatnam Central 42
Satisfaction level for gift voucher redemption process 43
Preference for shopping 44
Recommendation level 45
LIST OF CHARTS6
No of visits of customers 33
Medium of awareness 34
Criteria for choosing Visakhapatnam central 35
Service offered by Sales representatives 36
Promotions in Visakhapatnam Central 42
Satisfaction level for gift voucher redemption process 43
Preference for shopping 44
Recommendation level 45
7
Theoretical Framework
RETAILING:
8
Market - Any system or place where parties are engaged in exchange of either goods or
services is called as market. The parties are often called as buyers and sellers. The seller offers
his goods or services to the buyer who in return purchases it in exchange of money.
Goods - Tangible (things which can be seen and touched) physical products which are
transferred from a seller to the buyer (consumer) to fulfill the latter’s need are called as goods
Retailing involves the sale of goods from a single point (malls, markets, department stores etc)
directly to the consumer in small quantities for his end use.
Retailing is the combination of activities involved in selling consumer goods and services
directly to ultimate consumers for their personal or household use. In addition to selling, retailing
includes such diverse activities as, buying, advertising, data processing and maintaining
inventory.
Retail is usually classified by type of products as follows:
Food products
Non Apparels - appliances, electronics, furniture, sporting goods, wellness, etc.
Apparels - clothing and other fabrics.
The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users either
directly from the manufacturers or through a wholesaler.
The store location, product assortment, timings, store fixtures, sales personnel, delivery and other
factors, very critical in drawing customers to the store. Therefore, retailers need to place impulse
items in high traffic locations, organize store layout, train sales people, and place related items
next to each other, to stimulate purchase. Retailers provide the vital link between producers and
ultimate consumers.
Organized retailing
9
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets
and retail chains, and also the privately owned large retail businesses.
Unorganized retailing
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned
Consumer Behavior
The behavior of the consumer with respect to the products and services offered by the mall whether positive or negative can be called as consumer behavior. Usually this can be found out by issuing questionnaires or personally interviewing the consumers about their experience of the products. The level of satisfaction or dissatisfaction can be found out through these methods.
How consumers really make decisions
1. They are more likely to choose an alternative after an inferior option.2. The choices that they make depend on their own tastes.3. They choose a better-known brand if they think their purchase decision is going to be
wrong.4. Consumers often overestimate their future consumption.
Urban consumer behavior
A typical urban consumer is more intelligent than one imagines. This increased awareness of the goods and services can be attributed to readily available information on internet, newspapers and opinions from friends and colleagues. Urban consumer always goes for a number of reviews from friends and colleagues which equip him/her with the required knowledge of the product. But, the general instincts of a typical consumer are always found in urban consumer too.
In case of consumers of steel exchange of India Ltd, due to less competition in the city of Vizag and high brand image of “Vizag Profiles” they tend to go for its products whatever the purpose might be. It has been found out that every 7 out of 10 opt for the products of this company in the city of Vizag.
There are three important factors which influence the consumer behavior, Cultural, Social and Personal. Cultural factors include culture, subculture and social class. Social factors include
10
reference groups, family, social roles and status. Personal factors include age, stage in life cycle, occupation, lifestyle, personality. The four main psychological processes that affect consumer behavior are motivation, perception, learning and memory.
Customer satisfaction
Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."
It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. 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.
Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers’ expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify
an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective.
Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able
do this, firms need reliable and representative measures of satisfaction.
In researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,
might receive a lower satisfaction rating than a budget motel—even though its facilities and
service would be deemed superior in “absolute” terms.[1]
11
The Present Study
Need of the study
12
This study has been conducted keeping in mind the need to study the customer expectations and satisfaction towards Visakhapatnam central, Visakhapatnam. This assisted us in understanding the tastes and preferences of consumers and their views on the further improvements. Another important need for the study is to understand how attractive Visakhapatnam central is from its competitors.
Objectives of the study
1. To understand what consumers really look at while making their purchase decision.2. To study the expectation level of customer from Visakhapatnam Central.3. To study the problem faced by Customer.4. To study the service quality offered by Visakhapatnam Central in term of Reliability,
Assurance, Tangibility, Empathy, Responsiveness.5. To study the role of promotional offer/schemes in customer satisfaction.6. To study the consumer preference of particular retail shop.
Scope of the study
This study covers customers of Visakhapatnam Central, Visakhapatnam. The catchment areas of the Visakhapatnam Central are Beach Road, CBM compound, Seethammadara, M.V.P.Colony, Dwaraka Nagar , Gajuwaka.
The study makes effort to ascertain the expectations and satisfaction level of customer of Visakhapatnam Central through survey so that company would be able to come up to the expectation level of its customer.
The company can come up to the expectation only by finding out the problem that customer are facing during their purchase from Visakhapatnam Central.
The subject has been taken for the research as it plays key role in the success of retail sector.
No company can think of selling their product without having satisfied customers. No company can survive in long run without coming up to the expectation level of customer. So to know the customer satisfaction level such research is very important.
In short it is the level of satisfaction that is link between end-user and company. As long as the company is able to satisfy its customer, customer would remain in the bracket of loyal customer.
Hence it is very essential to understand the customer satisfaction and to measure the satisfaction level time to time as there is always scope of improvement.
RESEARCH METHODOLOGY
13
RESEARCH METHODOLOGY
It is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researchers, in studying our research problem along with the logic behind it. It is essential for the researchers to know not only the research method technique but also the methodology.
RESEARCH PROCESS
It consists of a series of action necessary to effectively carry out research and the desired sequence of these steps.
• Defining the problem and research objectives
• Develop the research plan
• Collect the information
• Analyze the information
• Present the findings
• Make the decision
RESEARCH DESIGN
A very simple design has been adopted to conduct research on customer expectations and satisfactions who visit Visakhapatnam central, Visakhapatnam.
Data collection methods
1. Primary data from the consumers is being gathered through a questionnaire which essentially gives information about their tastes and preferences.
2. Secondary data like the company and industry profiles are gathered from the internet sources and books.
Data tabulation
14
Thus gathered data is being put into tables for further analysis. Simple answers like ‘yes’ or ‘no’ or the various answer options for the questions are being tabulated for the entire sample space.
Sample Size
150.
Analysis method
The collected data is tabulated and then analyzed by drawing the bar graphs putting up the various options into them. Conclusions are being drawn from the diagrams.
15
Organization Profile
ABOUT INDUSTRY
16
The retail industry is a sector of the economy that is comprised of individuals and companies
engaged in the selling of finished products to end user consumers. Retail is India's largest
industry. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the
employment. Retail sector is one of India's fastest growing 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.
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. India's 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 Kirana stores
resulting in dislocation in traditional economic structure. Also, the growth path for organized
retail in India is not hurdle free. The taxation system still favors small retail business. With the
intrinsic complexities of retailing such as rapid price changes, constant threat of product
obsolescence and low margins there is always a threat that the venture may turn out to be a loss
making one.
A perfect business model for retail is still in evolutionary stage. Procurement is very vital
cog in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable
availability, unsorted food provisions and daily fluctuating prices as against Consumer
expectations of round-the-year steady prices sorted and cleaned food and fresh stock at all times.
Trained human resource for retail is another big challenge. The talent base is limited and
with the entry of big giants there is a cat fight among them to retain this talent. This has resulted
in big salary hikes at the level of upper and middle management and thereby eroding the profit
17
margin of the business. All the companies have laid out ambitious expansion plans for
themselves and they may be hampered due lack of requisite skilled manpower.
But retail offers tremendous for the growth of Indian economy. If all the above
challenges are tackled prudently there is a great potential that retail may offer employment
opportunities to millions living in small town and cities and in the process distributing the
benefits of economic boom and resulting in equitable growth.
Present Indian retail scenario
The retail industry is divided into organized and unorganized sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size. Organized
retailing refers to trading activities undertaken by licensed retailers, that is, those
Who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized
retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example,
the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand
cart and pavement vendors, etc. 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, Bharati, Birla and others are now entering into
retail sector. Biggest player in India is Pantaloon Retail India Limited
Present Indian retail scenario:
18
The retail industry is divided into organized and unorganized sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size. Organized
retailing refers to trading activities undertaken by licensed retailers, that is, those
Who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized
retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example,
the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand
cart and pavement vendors, etc. 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, Bharati, Birla and others are now entering into
retail sector. Biggest player in India is Pantaloon Retail India Limited.
1. Hypermarket : It is the largest format in Indian retail so far is a one stop shop for the modern Indian shopper.
Merchandise: food grocery to clothing to spots goods to books to stationery.
Example: Pantaloon retail’s Big Bazaar, RPG’s Spencer’s (Giant), Vishal mega mart.
2. Supermarket : A subdued version of a hypermarket.
Merchandise: Almost similar to that of a hypermarket but in relatively smaller
proposition.
Example: Nilgiris, Apna Bazaar, Trinethra/more.
3. Convenience store : A subdued version of a supermarket.
Merchandise: Groceries are predominantly sold.
Example: stores located at the corners of the streets, Reliance Retail’s fresh
19
4. Department store : A retail establishment which specializes in selling a wide range of
products without a single prominent merchandise line and is usually a part of a retail
chain.
Merchandise: Apparel, household accessories, cosmetics, gifts etc.
Example: Landmark Group’s Lifestyle, Trent India Ltd.’s Westside.
5. Discount store : Standard merchandise sold at lower prices with lower margins and
higher volumes.
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.
6. Specialty store : It consists of a narrow product line with deep assortment.
Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World, Crossword.
7. MBO’s : Multi Brand outlets, also known as Category Killers. These usually do well in
busy market places and Metros.
Merchandise: Offers several brads across a single product category.
8. Kirana stores : The smallest retail formats which are the highest in number (15 million
approx.) in India.
Merchandise: Mostly food and groceries.
9. Malls: The largest form of organized retailing today located mainly in metro cities, in
proximity to urban outskirts.
20
Merchandise: They lend an ideal shopping experience with an amalgamation of product,
service and entertainment, all under a common roof.
Example: Pantaloon Retail’s Central, Mumbai’s I orbit.
21
ABOUT COMPANY
About future group:
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses spanning across the consumption space. While retail forms
the core business activity of Future Group, group subsidiaries are present in consumer finance, capital,
insurance, leisure and entertainment, brand development, retail real estate development, retail media
and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of
retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai
(Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a
fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand,
the group’s specialty retail formats include, books and music chain, Depot, sportswear retailer, Planet
Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain,
Aadhar, among others. It also operates popular shopping portal, futurebazaar.com.
Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth
over $1 billion that are being invested in consumer brands and companies, real estate, hotels and
logistics. It also operates a consumer finance arm with branches in 150 locations. Other group
22
companies include, Future Generali, the group’s insurance venture in partnership with Italy’s Generali
Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics
and distribution solutions to group companies and business partners and Future Media, a retail media
initiative.
The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed
company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co.
and family entertainment centers, F123. Through its partner company, Blue Foods the group operates
around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle
Bar, The Spoon, Copper Chimney and Gelato.
SEGMENT AND RETAIL BRANDS BUILT BY PANTALOON’S KISHORE BIYANI :
FASHION: Pantaloons, Central, Big Bazaar and Fashion Station
FOOD: Food Bazaar
GENERAL MERCHANDISE: Central Malls and Big Bazaar
SPECIALITY RETAILING: All, Blue Sky
HOME: Home Town, E-Zone, Furniture Bazaar, Electronics Bazaar, Collection I and Mela
BOOKS AND STORES: Depot
COMMUNICATIONS: M- Zone and Converge M
WELLESS: Star and Sitara
E-TAILING: Futurebazaar.Com
FOOTWEAR: Show Factory
LEISURE AND ENTERTAINMENT: Bowling Co, Rain, Bollywood Café, Chamosa, Fuel,
Sports Bar, Food Stop and Your Kitchen.
23
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The
group’s corporate credo is, ‘Rewrite rules, Retain values.’
ABOUT VISAKHAPATNAM CENTRAL
Visakhapatnam Central is a shopping mall in Visakhapatnam, India. It is a newly erected huge
mall in Visakhapatnam, India. The thought behind this pioneering concept was to give customers an
unobstructed and a pure shopping experience and to ensure the best brands in the Indian market are
made available to the discerning Indian customer.
Visakhapatnam Central Opened and started it’s functioning in Visakhapatnam since 29th
July 2010. Visakhapatnam Central offers latest fashion and accessory brands in all major
categories like youth wear, men’s wear, women’s wear, kid’s wear and accessories, Latest
apparel, footwear, watches, eye wear, jewellery, cosmetics, perfumes, handbags and much more.
24
In a short span of its existence, Central has revolutionized and redefined the shopping
experience in Visakhapatnam.
CENTRAL STRATEGY:
Applying the Retailing concept in Relation to Central::
Customer Oriented – central determines the attribute and needs of its customers.
Coordinated Effort – central integrates all plan and activities to maximize efficiency. All
the employees give their best service to customer.
Value Driven – central offers good value to customers, which means having the
appropriate price for the level of product and customer service.
Goal Oriented - central sets goals and then uses a strategy to attain them.
25
COORDINATED EFFORTCOORDINATED EFFORT
VALUE DRIVENVALUE DRIVEN
GOAL ORIENTEDGOAL ORIENTED
CENTRAL STRATEGYCENTRAL STRATEGY
CUSTOMER ORIENTEDCUSTOMER ORIENTED
BRANDS @ CENTRAL:
There are four floors in VIZAG CENTRAL with more than 300 Brands.
Ground floor: consists of all Wellness & Beauty merchandise, Accessories, Perfumes,
Electronic Zone, and an SIS called Neeru’s which is a specialty store for ladies and many
more.
First floor: consists of Ladies Footwear, Apparel, Accessories and Kids Apparel sections.
Ladies:
Clothing- 14 Brands
Footwear- 7 Brands
Kids-:
Clothing- 14 Brands
Footwear- 2 Brands
Second floor: consists of Men’s formal Apparel, Accessories and Men’s Footwear.
Clothing- 27 Brands
Footwear- 9 Brands
Third Floor: consists of Men’s Casual’s, Sports Wear, Accessories and an SIS called
Odyssey.
Clothing- 28 Brands
Planet Sports- 11 Brands
Fourth Floor: This floor is divided into two segments, one is the Food Stop and
another segment is that of Movies’. The food court is in operation but the Movie segment
is yet to start.
26
CUSTOMER SERVICE @ Visakhapatnam Central:
Customer is most important thing in retail. In retail, the idea of focusing on the best current
customers should be seen as an on-going opportunity.
Types of customers:
Discount Customers
Loyal Customers
Impulse Customers
Wandering Customers
If we are looking at growth, then we need to focus our effort on the loyal customers, and
merchandise our store to leverage the Impulse shoppers.
Complimentary Services offered in Central are:
Gift wrapping.
Exchange within 7 days.
T24- Shop more, Talk more.
Free alterations.
Music DJ Central.
Wi-Fi Service.
Nail Art.
During my tenure, Central provided Rewarding Programs for the Loyal Customers.
Joy of Rewards- Rewarding program where in if the customer makes a purchase of:
Issued for purchase of - Rs 2500
For every Next purchase – Rs 1000 and above entry is done on the book.
According to the number of visit, the customer is rewarded.
27
Visit Gift Voucher Movie Voucher Food Voucher
3rd visit 100 Rs - -
5th visit 300 Rs 100 Rs -
7th visit 300 Rs 100 Rs 100 Rs
10th visit 500 Rs 200 Rs 100 Rs
The card is valid for Lifetime.
E-passbook: This strategy was used in Central during the Great Indian Shopping Festival
According to the shopping amount the points are given and later the points can be
redeemed for a gift from a selected choice. (For every 250 Rs: One point)
The validity of the E-passbook was only until the FESTIVAL lasted.
Gift Vouchers: These were issued for every purchase more than Rs 2500
The gift voucher has to be
redeemed only during the next
purchase.
This ensured that the customer again makes a purchase next time to avail the Gift Voucher.
Lucky Draw coupons were also issued to the customers.
Rewarding Strategy:
28
Youth Wear Rs 500 off
Women’s Wear Rs 300 off
Kid’s Wear Rs 200 off
Foot Wear Rs 300 off
Developing a Feedback System:
A carefully planned and well-written customer comment book is maintained by Central
and this allows the customer to express their opinion and provide valuable feedback. This form
of store evaluation not only helps in measuring the customer satisfaction, but also shows the
retailer what areas of operation may need additional resources or modifications. It can also be a
great tool for receiving complaints.
Displeased customers generally express their dissatisfaction. A conveniently placed
customer comment book could prevent the unhappy customer from complaining to a third-party.
Now the store can receive the complaint and act quickly to resolve the issue. This helps in
retaining the customer, and it may also prevent any negative word-of-mouth
29
REWARD SPENDING PATTERN
REWARD SPENDING PATTERN
BUILD CUSTOMER DATABASE
BUILD CUSTOMER DATABASE
CREATE EFFICIENT TARGET GROUP
CREATE EFFICIENT TARGET GROUP
ENABLE RELEVANT PERSONAL SERVICE
ENABLE RELEVANT PERSONAL SERVICE
CUSTOMER LOYALTY
CUSTOMER LOYALTY
IDENTIFY INDIVIDUAL CUSTOMERS
IDENTIFY INDIVIDUAL CUSTOMERS
COMPETITOR ANALYSIS
Central is one of the leading retail stores in Visakhapatnam, its major competitors are CMR
Central, CMR Shopping mall and M&M.
CMR Central:
An affiliate of the Chandana Brothers group of stores, CMR Central is a shopper’s paradise in
Visakhapatnam. It started its operations in January 2010 and has grown ever since by adding
even an entertainment zone to its facility. Spread over three and a half acres, this multistoried
super mall has everything under one roof. This includes apparels, Gold, Diamond and silver
jewellery, accessories, furniture, home appliances and furnishing items apart from a separate
entertainment zone.
Popular apparel brands like Mufti, Max, White House, Spykar Jeans and the
indigenous Reliance Trends have their individual outlets here. So there are both western casual
and ethnic Indian clothes available here for men, women and kids. CMR itself has its outlet on
the ground floor offering cosmetics, accessories, sarees, jewelry and more. The home appliances
division here boasts of the widest range and variety in consumer electronic goods and domestic
appliances. The third and fourth floors at CMR Central spread across an area of 12,000 square
feet has been designed as a Fun Zone with avenues like ‘Jungle Horror House’ for those willing
to be scared in pitch darkness, ‘Mirror Maze’, Play Stations, robotic Horse rides and Redemption
games. But it’s the 4D theatre here that stands out the most. Visitors are provided with special
glasses and made to sail through an enthralling voyage of special effects on synchronized seats
for 20 minutes. This space also has an integrated food plaza.
CMR also boasts of the INOX Multiplex with four screens and 969 seats. It screens
Hollywood, Bollywood and Tollywood’s latest releases. Plush seats, ample leg space, luxuriant
carpeting and top-class hospitality at 'Refuel' the in-house brand of theatre food like flavored
popcorn, hot and cold snacks and beverages are the add-ons.
CMR Shopping mall:
30
It is owned by Chandana Mohana Rao, owner of the famous Chandana Bros.
It is a 4 story building in which you can get all the shopping items you want. In this the prices are
comparatively low…the mall mainly attracts people of low income groups An affiliate of the
Chandana Brothers group of stores, the CMR Shopping mall in Vizag has both clothes and gold,
diamond and silver jewelry. The clothes (traditional and contemporary) are for the entire family,
ranging from sarees for ladies, formals for men, kurta pyjama sets and T-shirts for boys and
churidar kurta sets and skirts and tops for girls. A wide variety of brands can be found here. They
also have clothes and accessories for newborns and infants.
M&M:
The M&M Group, after its success in Vijayawada and other parts of Andhra Pradesh, opened its new store in the port-cum-steel city on Monday.
This new store is up on an area of 40,000 sq.ft in five floors on the Sri Sampath Vinayagar road at a cost of Rs. 6 crore, and will cater to the needs of all age groups and all income groups.
The store would present international brands like Jack N Jones, Energie, Giordano and Espirit for the first time in the State.
31
Analysis
Analysis and interpretation
32
No of visits of customers
Table: 01
Weekly Monthly Occasionally Others
15 66 54 15
Interpretation:
From the above graph, it is clear that 44% of the customers visit central monthly, 36% of them visit occasionally and 10% of the customers visit the store weekly. So, the customers visiting the mall monthly are more than the customers visiting either weekly or occasionally.
Medium of awareness:
33
Table: 02
News papers
Print ads TV Friends Others
13 13 8 97 19
Interpretation:
From the above graph, 65% of the people got to know about central through friends, 8% from newspapers, 13% through other means, 5% through television and 9% through print media…so most of the customers got to know about central through friends word of mouth…
Criteria for choosing Visakhapatnam central:
Table: 03
34
Pric
e Availability/variety Ambience Quality Others
3 95 24 19 9
Interpretation
From the above chart it is clear that, 63% of people choose Visakhapatnam central from its competitors for availability of its brands, 16% prefer for its ambiance of the store,13% for quality of the products and remaining 6% for various other reasons
Customer satisfaction levels towards:
Customer service desk:
Table: 04 (a)
35
Interpretation:
From the above chart, 70% of the people felt that customer service desk is good, 25% felt the service is excellent and 5% of the people felt it is poor. So the customer service desk need to be improved a little to attain the satisfaction level of the customers
Billing Process:
Table: 04 (b)
36
Excellent Good Poor
38 105 7
Excellent Good Poor
55 92 3
Interpretation:
Coming to the customer satisfaction levels regarding the billing process, 61% felt that billing process is good, 37% as excellent and 2% of the people are not at all satisfied with the billing process. The time taken for billing can be made faster and avoid inconvience for the customers.
Ambiance of the store:
Table: 04 (c)
37
Excellent Good Poor
81 69 0
Interpretation:
From the above chart 54% of the customers felt that the ambiance of the store is excellent and 46% felt it is good. The ambiance of the store is too good as more than half of the customers i.e. 54% rated the ambiance of the store as excellent
Collection of brands
Table: 04 (d)
38
Excellent Good Poor
80 68 2
Interpretation:
54% customers rated the collection of brands in the mall are excellent and they are highly satisfied with the availability of brands, 45% customers rated good and 1% rated poor, as he expected the mall to have more wide variety of brands.
Overall Experience:
Table: 04(e)
39
Excellent Good Poor
51 99 0
Interpretation:
From the above chart, 66% of customers are happy with their overall shopping experience and rated as good and 34% of them are very happy and rated their overall shopping experience as excellent. There is no customer who is not happy with his\her overall shopping experience.
Service offered by Sales representatives:
Table: 05
40
Excellent Good Average Worst
25 98 27 0
Interpretation:
From the above graph it is clear that 65% customers rated the services offered by the sales representatives as good, 18% rated as average and 17% of them as excellent. As more than half of the customers rated the services offered as good, we can infer that the sales representatives are doing well
Promotions in Visakhapatnam Central:
Table: 06
41
Very Attractive
Fairly Attractive
Neutral Not Attractive
20 79 38 13
Interpretation:
Coming to the promotions offered in Visakhapatnam central, 53% customers felt the promotions offered are fairly attractive, 13% say the promotions are very attractive,9% customers are dissatisfied with the promotions offered and the remaining customers have no idea about the promotions in Visakhapatnam central
Satisfaction level for gift voucher redemption process:
Table: 07
Extremely satisfied
Satisfied Neither satisfied nor dissatisfied
Dissatisfied Dissatisfied
42
22 55 50 9 14
Interpretation
From the above graph, it is clear that in the gift voucher redemption process only 37% of the customers are satisfied with it, 33% customers are having no idea about the gifts redemption process,15% customers are highly satisfied with it and 9% customers are somewhat dissatisfied with, as there is a delay in issuing the gifts to the customers.
Preference for shopping:
Table: 08
CMR central
CMR shopping
Visakhapatnam Central
M&M Others
50 27 46 15 12
43
Interpretation
Coming to the shopping preference of the customers, 33% would prefer CMR central for shopping, 31% in Visakhapatnam central, 18% in CMR shopping mall, 10% in M&M and the remaining 8% would prefer other stores in the city. It is clear that CMR central is tough competitor for Visakhapatnam central.
Recommendation level:
Table:09
44
Yes No
136 14
Interpretation
From the above chart, it is clear that 91% of the customers would recommend Visakhapatnam central to others for shopping as they had experienced a good shopping experience in the mall.9% of the customers said that they would not recommend Visakhapatnam central to others for shopping, as they are highly dissatisfied with the gift redemption process
45
Findings, Suggestions and Conclusion
FGSF Findings:
E- Pass book:
Positives:
Most of the customer’s said it’s good.
The gifts are Worthy to points in starting range of SKC points.
Offer Valid in First time (at time of issue).
46
Negatives:
Limited offer period.
Complex (gift giving procedures).
Additional payment of amount is discouraging.
Staff at POS is ineffective.
Staff has least idea about FGSF.
Joy of Rewards:
Positives:
Better than E-passbook.
Life time validity.
Negatives:
Need to carry this all the times.
Offer amount is not up to mark.
E.g. amount spent 3000/- Gift voucher worth 100 Rs /-
Offer not interesting.
Time gap for offer is long.
Gift Vouchers:
Positives:
Price amount to be redeemed is good.
Good to include all categories.
Negatives:
Limited time period.
Offer can be redeemed only on one brand.
47
Redemption rate is very low.
All brands are not included.
According to the findings of the survey, the management has noted down the aspects so that
these can be referred to before making any more promotions in the future.
Study Findings
1. The customers of Visakhapatnam Central like to visit the store monthly or occasionally rather than weekly.
2. There is a good word of mouth promotion for Visakhapatnam Central as majority of customers heard about the mall from friends.
3. The main criterion for choosing Visakhapatnam central is due to good collection of brands.
4. The customers are satisfied with the service provided by customer service desk as well as the billing process. They are highly satisfied with the ambiance of the store and the collection of brands and have a satisfied overall experience.
48
5. The customers find the service offered by sales representatives satisfactory.
6. The promotions made by Visakhapatnam Central have fairly attracted many customers into the store.
7. The customers are satisfied with the gift voucher redemption process.
8. The customers like to go to CMR Central apart from Visakhapatnam Central.
9. The customers are highly satisfied with Visakhapatnam Central. The survey revealed that 136 out of 150 would like to recommend it to others.
Suggestions
1. The company needs to concentrate a little more on the promotion activities for improving their sales figure. The present social activities may not be sufficient.
2. 31% customers said that Central is their favorite store for shopping but its major
competitor CMR central is top in the race. So Central has to keep running different promotions and events to keep the store in buzz and to retain the existing customers.
3. Visakhapatnam central may think about the decision to issue a membership card for its loyal customers, which also attracts more number of customers.
4. There should be proper promotion of Visakhapatnam central as most of the customers got to know about the mall through friends and very few from other medium. so the mall promotion can be improved by advertising through newspapers, hoardings etc.
5. There should be customer Feedback box in the name of “Customer Complain box”. It
must be accessible only to H.R. One person should be deputed to handle it daily. By
doing this customer grievances can be monitored closely. (One of the most efficient way
to achieve customer satisfaction). If it is done more than 50% of the problem is solved.
CSD should aware customer regarding “Customer complain box”.
6. Most of the promotional offer confused customer. It also cause dissatisfaction.
Communication of promotional offer must be clear to customer. Regular announcement
of promotional offer from CSD is needed. As it is found that CSD has lackluster
approach. It announces but announcement is not frequent.
49
CONCLUSION
From the survey many useful insights can be drawn. At first majority of the customers are
frequent visitors to Central and majority of them rated Central as their favorite store for shopping
so to retain the existing customers Central has to work on improving its promotions. From the
survey customer expectation and satisfaction levels can be identified which can be worked on
further to attract more customers. Apart from this since taste and preferences of the customers
are known, it can be worked on to make further improvements.
BIBLIOGRAPHY
BOOKS:
Naresh Malhotra and Satyabhusam Dash (2007) Marketing Research – An applied
orientation (Fifth edition)
Philip Kotler, Abraham Koshey, Mitleshwar Jha –Marketing Management (13th edition)
50
WEBSITES:
http://www.futuregroup.in/home.asp
http://pantaloon.futurebazaar.com/indexpantaloon.jsp
http://economywatch.com
CMR CENTRAL AND M&M AVAILABLE FROM
http://mandmstores.in/index.html
http://www.cmrvizag.com/cmrvsp.htm
51
Annexure
Dear Sir/Madam, I am a student from GITAM Institute of Management, Visakhapatnam conducting a survey on “Customer expectations and satisfaction towards Visakhapatnam Central” Kindly help in this survey process by filling the questionnaire given below. Your cooperation will be highly obliged.
52
1) How often do you visit Visakhapatnam central?
a) Weekly b) Monthly c) Occasionally d) Any other
2) How did you come to know about Visakhapatnam central?
a) News papers b) Print ad c) TV d) Friends e)Others
3) What attracts you more to Visakhapatnam central from its competitors?
a) Price b) Availability/Variety c) Ambience d) Quality
e) If any, please specify _______________
4) Rate the following criteria’s:
Particulars Excellent
Good
poor
Customer service desk
Billing process
Ambiance of the store
Collection of brands
Service standards
53
Overall experience
5) How attractive are the promotions in Visakhapatnam central in your views?
a) Very attractive b) Fairly attractive c) Neutral d) Not attractive
6) How is the service of Sales Representatives in Vishakhapatnam central?
(a) Excellent (b) Good (c) Average (d) Worst
7) Are you satisfied with gift voucher redemption process?
a) Very satisfied b) Somewhat satisfied c) Neither satisfied nor dissatisfied
d) Somewhat dissatisfied e) Very dissatisfied
8) Where do you usually shop in Visakhapatnam?
a) CMR CENTRAL b) CMR SHOPPING MALL c)VIZAG CENTRAL d)M&M e) OTHERS
9) Would you like to recommend central to others for shopping?
a) Yes b) No c) If ‘NO’ please specify the reason ________________________
Name: ______________________________________________________
Address: ______________________________________________________
Occupation: ___________________Age: ________Ph.No ________________________
54
Which income group do you fall into?
a) 10,000-20,000 b) 20,000-30,000 c) 30,000-40,000 d) >40,000
55