INTRODUCTION Retailing consists of the business activities involved in selling goods and services to consumers for their personal,

family, or household use. It includes every sales of goods and services to the final customer.

Retailing as an industry

Retailing is world's largest private industry with annual sales over $ 6600 billion. WalMartannual sales over $ 250 billion. It has share of 2.3% of U.S. G.D.P. There are nine retailers in Fortune 100, which highlights the importance of retailing as category. According to a market estimate after agriculture, retail is the largest single sector, both in termof turnover or will as employment in India. With market size of $200 billion. The report saidthe Indian retail industry is in revolution phase. Organized retailing in India, which account for less than 4%, is likely to grow four fold in the next five years. That means it will grow from current size of around $4 billion (Rs. 17,000Crore) to around $15 billion (Rs. 66000 Crore) the neighborhoods corner shops estimated at70 million across the country, and village Melas characterize the unorganized and fragmented nature of retailing in India.

RETAILERS INDIA 1) K. Raheja Group 2) 3) Shoppers stop Home Stop Mother care Hyper city Crossword Planet M

Tata Trent Westside Star India Bazaar Landmark RPG Group Spencers supermarket Spencers daily Spencers hypermarket Music world

4) Reliance Group - Reliance fresh - Subhiksha 5) Bharti Group 6) Aditya Birla Group 7) Caf Coffee Day 8) Pantaloon retail (I) Pvt. Ltd Pantaloons Big bazaar Food bazaar Fashion station All Blue sky E Zone Collection I Home Town Central Mall

9) Godrej Group - Godrej Aadhar - Natures Basket

RETAIL IN INDIA
The retail industry in India is largely unorganized & predominantly consists of small , independent, owner-managed shops. Retailing is INDIAs largest industry in terms of contribution to GDP& constitutes 13% of GDP. There are around 5 million retail outlets in India. There are also an uncounted number of low cost kiosks (tea stalls, snacks centre, barber shops, etc) & mobilevendors. Total retail sales area in India was estimated at 328 million sq.mt.in 2001, with an average selling space of 29.4sq.mt. per outlet. In India the per capita retailing space is about 2sq. ft, which is quite low compared to that of developed economies. n 2000, the global management consultancy AT Kearney put retail trade at 400,000 crore , which is expected to increase to Rs.800,000 crore by year 2005 an annual increase of 20%.According to the survey, an overwhelming proportion of the Rs.400,000 crore retail market is unorganized. In fact only a Rs20,000 crore segment of market is organized. There is no integrated supply chain management outlook in Indian traditional retail industry. Food sales constitute a high proportion of the total retail sales. The share was 62.7% in 2001,worthapprx. Rs 7032.2 billion, while non food sales were worth Rs.4189.5 billion. However the non-food retailing sector registered faster year-onyear growth than the food sales sector. The trend to market private labels by specific retail store is catching on in India as it helps to mprove margins. The turnover from private labels by major retail chains was estimated at around Rs 1200 million in 2001.

CURRENT SCENARIA OF INDIA RETAIL Unorganized market; Rs. 583,000 crores. Organized market; Rs. 5,000 crores. 5 x growths in organized retailing between 2000-2005. Over 4000 new modern outlets in last 3 years. The 3 top modern retailer control over 750,000 sq. ft of retail space Over 400,000 shoppers walk through their doors every week Growth in organized retailing on par with expectations and projection of the last 5 years : on course to touch Rs 35,000 crore or more by 2005-06

Table 2. Year 1978 1984 1990 1996

Growth in Retail Outlet (Million ) Urban 0.58 0.75 0.94 1.80 Rural 1.76 2.02 2.42 3.33 Total 2.35 2.77 3.36 5.13

Table 1.3 Composition of Urban Outlets Retail Outlet Grocers Cosmetic stores Chemist Food stores General Stores Tobacco , pan stores Others 34.7% 4.0% 6.3% 6.6% 14.4% 17.0% 17.0% Composition

Table 1.4 Composition of Rural Outlets Retail Outlet Grocers Genera Stores Composition 55.6% 13.5%

Chemists Others

3.3% 27.6%

Retailing in India
Diversities differentiates itself from the standard development of modern retail anywhere in the world. Conventionally, retailers focus on homogeneity and continuity in order to derive benefits of scale and efficiency in their system. Globally, retailers develop two or three major formats which are largely standardized, may not work in India. Significantly large, truly pan-Indian, multi-format modern retailing model needs to be developed in India. The Indian market will provide the footsteps to develop a model for globalizing retailing. This will be the biggest contribution of Indian retailers to the world. Indian retailers can establish thought leadership is in the field of technology. Unlike in developed countries, Indian retailers do not have legacy systems on which they have to build their technology platform. As retail grows and develops fresh technology-led solutions, India will take a leap and the next generation retail technology solutions may well come out of India. Usage of RFID and the next practices in technology-based retail solutions may well emerge from Indian retailing. Indian retailers would do well to develop their own systems and benchmarks that are admired and followed the world over.

Next 3-5 years are tough for retail biggies The retail sector is expected to grow 40% to $427 billion by 2011. By 2017, organized retail will be 15-20% of the total retail market. Total retail market $ 800-billion by 2017. Impact on rural incomes and urban prices will be real and positive. Organized retailing in India will need painstaking, often frustrating, effort to chisel out India-ready business models, retail formats and delivery models. Products, Properties, People and Profitability are going to be huge challenges. The real estate prices and shortage of talented staff, the run-up expenses for growth are going to shoot up sharply. Significant delay in completion of shopping malls by developers and unreasonably high property prices is adversely affecting the growth of the sector.\ The situation is expected to improve in 2009, when a large, and probably an oversupply of retail space is expected to come on-stream.y the year 2010, it is expected that there will be around 500 shopping malls, adding over 250million square feet of retail space. Its' just the first phase of retail playing out in India currently, where lot of players are merely land-grabbing'. In second phase the focus will be on creating differentiation. And in a couple of years, half of the new entrants of today will simply die.

In 2008, the competitive landscape is also expected to unfold with many large entrants finally launching their operations. Understanding, interpreting and catering to Indian consumer behavior, taking into account the social diversity in the country will be crucial to the success of new players. New formats in specialty retail, wholesale retail and luxury retail are expected to emerge. The next few years will provide the answers to the most crucial questions on the sustainability of modern retailing in India. Whether the Indian consumer market can sustain such large growth in modern retail, whether more and more people will join the consuming class and what the real market size in small cities will be, become clearer. By 2010 a conclusion on the consumption potential in India can be reached. No one can stop the growth of modern retail and the consequent impetus to consumption and development in India. No one can stop an idea whose time has come

Where is the opportunity? Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a careful analysis of the town strata-wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India. As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India's total population would grow much faster than their smaller counterparts, from 10.2 per cent today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail market would grow from 21 per cent today to 40 per cent by 2025.Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organized sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns .

OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE: 1. Study about the LOYALTY schemes run by the mall.2. 2. Study the customer approach towards the mall.3. 3. Study about the floor operations in a shopping mall.4. 4. Comparative analysis of all retailers in this section to differentiate with other competitors.

SECONDARY OBJECTIVE:

1. Understand the customer behavior inside the mall.2. 2. Customers expectation from the mall. 3. Gather all the information about all the competitors. 4. All details about the loyalty scheme in retail sector. 5. To make suggestion towards the improvement in loyalty schemes. 6. To make suggestion towards STORE PATRONAGE.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve research problem. In it we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them. It is necessary for a researcher to know not only the research methods/techniques but also the methodology. It may be noted, in the context of planning & development, that the significance of research lies in its quality and not in quantity. Researchers should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why The various stages to solve the research problem as shown in following diagram :-

RESEARCH PROBLEM

RATIONAL SCOPE OF STUDY

RESEARCH DESIGN
RESEARCH METHODOLOGY TYPES OF RESEARCH

SAMPLING DESIGN TECHNIQUE OF SAMPLING SAMPLE POPULATION SAMPLE FRAME SAMPLE UNIT SAMPLE SIZE DATA COLLECTION PRIMARY DATA SECONDARY DATA

DATA COLLECTION :PRIMARY SOURCE:The method of data collection is done by the way of survey , this is a process where by first hand information is collected. This method is needed for meeting the specific objective of research study. I have collected primary data in the form of filled structured questionnaire by customer . In first questionnaire . I collect whole data about customers feedback. In second I collect all the data regarding to comparative analysis . SECONDARY SOURCE :The secondary data was collected in the form of company profile and product profile from the Web site of Pantaloons. Some of other website are also referred . For collecting the required data the CSAS on the mall were also consulted . The data has helped in ascertaining the strategies and approach of major players in market. Thus the study involved collection analysis and interpretation of a lot of data relating to this sector. The data is collected from various sites, books., journals etc.

SAMPLE DESCRIPTION: After deciding on the research approach and instruments, the marketing research must design the sampling plan:1.

SAMPLING SIZE

The target for this the customers who come for shopping inside the mall. Sample size of the study is 200 customers who come for shopping inside the mall.

SAMPLE SELECTION PROCEDURE:

Since it is the survey of customer, to obtain an unbiased result the customers sample from the population were interviewed randomly. So the sampling technique chosen for the research is Random sample technique. Every customer inside the mall had an equal chance of being interviewed.

SAMPLE UNIT:The customer who come for shopping inside the mall is the sample unit.

CONTACT METHOD:

Personal approach to each and every customer for all surveys and interviews were the Contact method used for obtaining a proper and detailed feedback. A face-to-face Interaction took place with each sample representative.

The data collected through questionnaire was properly classified and tabulated in the form of a report. These reports formed the basis for the comparative analysis and drawing inferences there from. From the inferences drawn certain conclusions and recommendation were made.

FIELD WORK:

The fieldwork was conducted for a period of 15 days for both the research. Interviews were conducted inside the mall by face face interviewing.

REVIEW OF LITERATURE

REVIEW OF CONCEPT AND THEORIES:

The above given definition of customer loyalty includes both behavior &attitude, which can result in four possible situations When both attitude & behavior are weak , it means no loyalty exists , weak attitude indicates the customer may not have any liking for the brand & the store. While weak behavior means that the purchase of the brand or visiting the store is sporadic. When the attitude & behavior are strong , it means that the customer has a strong brand or store loyalty. The remaining two situation cases are interesting. When behavior is high but attitude is low, it can be said that the customer has spurious loyalty, i.e the customer may buy the same brand again & again or shop at same store regularly but may not have ATTITUDE Strong Weak
STRONG Loyalty STRONG BEHAVIOUR WEAK

Latent loyalty

Spurious

No loyalty

ATTITUDE

Excellent customer service is another key element in gaining customer loyalty. If a client has a problem, the company should do whatever it takes to make things right. If a product is faulty, it should be replaced or the customer's money should be refunded. This should be standard procedure for any reputable business, but those who wish to develop customer loyalty on a largescale basis may also go above and beyond the standard. They may offer even more by way of free gifts or discounts to appease the customer. Some of the common bases for attracting customers are having dedicated employees, variety, unique merchandise & superior customer service. But the challenge for the retailer is to have a loyal database of customer, who will be unwilling to switch their loyalty. The strategies are built after:1. Developing a clear & specific positioning strategies. Making customer develop an emotional attachment with the retailers product offerings.

In a bid to strengthen relationships with their customers marketers are showing renewed interest in customer loyalty programs. But how effective are these programs? Surprisinglygiven their current popularitythe evidence is equivocal. Research on normal patterns of loyalty in established competitive markets suggests that in many cases it is hard to obtain exceptional advantages through the launch of a loyalty program. Also, competitive forces tend quickly to erode any differential gains .Before introducing a loyalty program, managers would be wise to fully cost it (including development, marketing and on-going costs), and compare these costs with a realistic assessment of the benefits of the programan assessment that goes beyond the rhetoric of relationship marketing .Here we argue that to stand the best chance of success under tough market conditions, a loyalty program must enhance the overall value-proposition of the product or service. This in turn will help to motivate buyers to make the next purchase

of a product, and therefore support other aspects of the firms offensive and defensive marketing strategy. Claimed Benefits of Loyalty Programs Advocates contend that loyalty programs are more profitable to a firm because (a) The costs of serving customers are less (b) Loyal customers are less price sensitive (c) They spend more with the company, and (d) They pass on positive recommendations about their favorite brands/suppliers.