INTRODUCTION

CUSTOMER RELATIONSHIP MANAGEMNET IN RETAIL

DEFINITION
Before we begin to examine the conceptual foundations of CRM, defining what CRM is would
be useful. In the marketing literature the terms customer relationship management and
relationship marketing are used interchangeably. As Nevin (1995) points out, these terms have
been used to reflect a variety of themes and perspectives. Some of these themes offer a narrow
functional marketing perspective while others offer a perspective that is broad and somewhat
paradigmatic in approach and orientation. A narrow perspective of customer relationship
management is database marketing emphasizing the promotional aspects of marketing linked to
database efforts (Bickert, 1992).

Another narrow, yet relevant, viewpoint is to consider CRM only as seeking customer retention
by using a variety of after marketing tactics that lead to customer bonding or staying in touch
with the customer after a sale ismade (Vavra, 1992). A more popular approach with the recent
application of information technology is to focus on individual or one-to-one relationships with
customers that integrate database knowledge with a longterm customer retention and growth
strategy (Peppers & Rogers, 1993).Thus, Shani and Chalasani (1992) have defined relationship
marketing as an integrated effort to identify, maintain, and build up a network with individual
consumers and to continuously strengthen the network for the mutual benefit of both sides,
through interactive, individualized and valueadded contacts over a long period of time (p. 44).
Jackson (1985) applies the individual account concept in industrial markets to suggest CRM
tomean, Marketing oriented toward strong, lasting relationships with individual accounts (p.
2). In other business contexts, Doyle and Roth(1992), ONeal (1989), and Paul (1988) have
proposed similar views of customer relationship management.


EVOLUTION OF CRM:

As observed by Sheth and Parvatiyar (1995b), developing customer relationships has historical
antecedents going back into the pre-industrial era. Much of it was due to direct interaction
between producers of agricultural products and their consumers. Similarly, artisans often
developed customized products for each customer. Such direct interaction led to relational
bonding between the producer and the consumer. It was only after the advent of mass production
in the industrial era and the advent of middlemen that interaction between producers and
consumers became lessfrequent leading to transaction oriented marketing. In other words, the
production and consumption functions became separated leading to themarketing functions being
performed by middlemen, and middlemen, ingeneral, are oriented towards economic aspects of
buying since the largestcost is often the cost of the goods sold.

In recent years however, several factors have contributed to the rapid development and evolution
of CRM. These include the growing de-intermediation process in many industries due to the
advent of sophisticated computer and telecommunication technologies that allow producers to
directly interact with end-customers. For example, in many industries such as the airline,
banking, insurance, computer software, or household appliances industries and even
consumables, the de-intermediation process is fast changing the nature of marketing and
consequently making relationship marketing more popular. Databases and direct marketing tools
give these industries the means to individualize their marketing efforts. As a result, producers do
not need the functions formerly performed by middlemen. Even consumers are willing to
undertake some of the responsibilities of direct ordering, personal merchandising, and product
use related services with little help from the producers. The recent success of on-line banking,
Charles Schwab and Merryll Lynchs on-line investment programs, direct selling of books,
automobiles, insurance, etc., on the Internet all attest to the growing consumer interest in
maintaining a direct relationship with marketers.


CUSTOMER RELATIONSHIP MANAGEMENT AS MARKETING TOOL

Customer Relationship Management (CRM) is the marketing management practice of
identifying, attracting and retaining the most valuable customers to sustainprofitable growth.
Customer Relationship Management is also the process ofmaking and keeping customers and
maximizing their profitability, behaviors and satisfaction.

Today Customer demand open equal access, real time specialized information, convenient
access, information portability, process & logistics transparency, pricing transparency, global
pricing, ability to set prices, choice of distribution channels and control over their
information.Maintaining relationship is the key to success of your business. By doing that, your
first-time customer can become a repeat customer, thereafter a client, then an advocate and
finally your partner in progress.


However the worst point is that at any point in the above process, he could disconnect from you
and therefore, it is all the more important to reiterate the relationship with him.From your loyal
customers, in addition to getting the base profit, you can also earn from reduced operating cost,
increased purchases and getting plenty of referrals. We also understand from the realistic
observation on customers that it costs ten times more to sell to a new customer than to sell to an
existing one. When the odds of selling to a new customer are 15 percent, the odds of selling to an
existing customer are 50 percent. And a typical dissatisfied customer will tell 8 to 10 people
about his or her bad experience. It is also true that eighty percent of complaining customers will
do business with the company again if it quickly takes care of the problem. 45% of customers
switching suppliers cite customer service issues as the reason for the switch.

The 80-20 principle is valid in sales & marketing too. 20% of the customers deliver 80% of
revenues and many times, more than 100% of profits. Existing customers deliver most of the
revenues. However more attention and money is often spent on non-customers. It is therefore
important to identify the most valuable customers (MVCs) for the success of the business.A
small net upwards migration of customers can deliver a dramatic improvement in business
performance. 5-10% of the small customers can move immediately to the top. But an upward
migration only happens when customers are very satisfied. But even reasonably satisfied
customers defect.Marketing and sales are charged with influencing customer behaviour but other
departments involved with customer processes also influence on customers for better or worse




CRM PRACTICES BY RETAILERS

As a sector, retail has been slow to adopt CRM principles and practices. Compared with such
industries as financial services and telecom, retail appears downright sluggish. The early CRM
experiments at retail focused on store-based efforts like branded credit cards and frequent-
shopper programs, some of which have taken root and been extended year after year. "There are
pockets of CRM success in retail," observes Adam Sarner, CRM analyst at Gartner Group. "We
are seeing some interesting programs in email marketing, in customer service, and in customer
segmentation."

At the high end of the sector, several creative new CRM strategies have emerged. Both
Nordstrom and Prada, for example, are experimenting with "clienteling," which means
automating the "black book" traditionally maintained by store sales personnel on their own
customers, containing purchase history, preferences and contact information. Sales people will
be able to pull up customer profiles and email their best customers about upcoming events like
trunk shows or the arrival of new merchandise. "This is the 'last mile' of CRM," says Gartner's
Sarner. "It supercharges the sales person's ability to manage the existing relationship."

At the mid-level of the retail sector, the focus is on loyalty programs. In the grocery business,
early efforts produced discount cards, many of them still anonymous, that offered little more than
the equivalent of manufacturers' coupons for periodic specials. But grocers are now beginning to
upgrade. The Food Emporium chain, a division of A&P, launched in March 2003 a new program
called Gold Points. The points can be redeemed for cash savings at purchase or for other rewards
like travel or consumer electronics. Gold Points is part of a syndicated program managed by
Carlson Marketing Group that includes 8 million customers from over 100 marketers, like TGI
Friday restaurants, Radisson Hotels, and FTD florists.

According to Janet Sparkman, executive vice president of consumer strategies at Carlson, the
Gold Points program was an immediate success for The Food Emporium. In its first 5 months,
the program converted 250,000 members from the previous program, and recorded 52% of store
sales on the card. Spend per member was 37% ahead of the previous year. "The earlier program
was anonymous and offered little value," Sparkman comments. "Cashiers would swipe for
cardless customers, which taints the data. With Gold Points, we move from a discount card to a
reward card. It has more value, and it's more fun."

Hallmark also manages a successful loyalty program for its 4500 independently owned retail
stores. Launched in 1994, the Gold Crown Card has over 12 million members, with data on their
purchase history, contact information and demographics. Hallmark segments the customers by
purchase pattern (greeting cards-only shoppers, cross-product shoppers, and promotion
responders) and sends marketing messages through direct mail and email, targeted to their
preferences.

Jay Dittmann is Hallmark's vice president of consumer 1-to-1 marketing, and has reporting to
him most of the activities one would associate with CRM: the call center, a marketing analytics
research group, the Gold Crown Card program, and Hallmark.com. Dittmann notes that
Hallmark evolved its enterprise-wide customer strategy over time. "We are not organized solely
for CRM. Instead, we are organized for the capabilities. The strategy, the systems, the analytics,
the marketing programs-all are integrated horizontally into the business. We don't believe a
functional silo called CRM would be successful."

Hallmark's customer strategy concentrates on tailoring products and offers through all Hallmark
brand touchpoints, from the Hallmark stores, to the mass retailers who carry Hallmark cards,
such as Walmart and CVS, to the Hallmark.com e-commerce channel. But Dittmann admits his
customer strategy cannot be called global. "Our dedicated retail network is strictly U.S. based. In
the U.K. and elsewhere, we face a very different retail environment. Abroad, our customer
strategy must be handled locally, by the Hallmark marketing arms in each country."

These store-based incentive programs are effective, but they are hardly on the cutting edge of
CRM thinking today. What is in the way of faster CRM development in the retail sector? The
root causes are many.

Perhaps the largest barrier is the natural tendency toward decentralization endemic to the
industry's structure. "The job description between central operations and store operations will be
split forever," observes Erin Kinikin, an analyst with Forrester Research. "Store people operate
independently. To develop a single view of the customer, you need considerable cooperation
across stores. Retail will never move to a single ownership model."

A corollary structural issue is the industry's traditionally thin margins. Store manager attention is
on cost-cutting and operational efficiencies. Technology investments tend to be earmarked for
systems that support merchandising, inventory and supply chain, tools like markdown
optimization software and bar-coding systems. "When we ask retailers about their IT budget
priorities," says Christopher Boone, retail industry program manager at IDC, "customer-related
programs fall to the bottom. Store systems are where the money is going. When we asked about
CRM spending, nearly 60% said they were not using CRM tools and had no plans to use them in
the next 12 months."
Another barrier lies in the challenges of multi-channel marketing. As new channels are built-
catalog, for example, and e-commerce-retailers have struggled with the systems integration
necessary to link customer records. "It's easy at a single-channel outfit like Amazon," says
Gartner's Sarner. "But William-Sonoma is another story. It's rare to find CRM enterprise-wide."
At the customer level, the fundamental barrier to CRM at retail is anonymity. How can a re-tailer
develop ongoing customer management strategies when there is no record of the transaction
linked to an individual customer? Much of retail industry CRM activity to date has thus focused
on overcoming this essential problem.

Over the years there have evolved a handful of distinct approaches, none of them perfect:
1. Store cards, whether a branded credit card or a discount or loyalty card. Only a
fraction of customers will use the card, and even then, usage can be sporadic.

2. Data matchback from syndicated credit card purchases, where addresses are
appended by credit bureaus and added to the store's marketing database. This
option that was essentially eliminated by the Graham-Leach-Bliley Act of 1999,
which now forbids address append.

3. Training reps at point of sale to collect and record customer contact information.
Today, only a small percentage of retail customers will provide contact
information when asked. Sales people need toprovide customers with a strong
rationale in order to improve these rates.

The next stage for retail CRM, after loyalty programs, is likely to be multi-stage marketing,
where stores track buying patterns and develop upsell and cross-sell strategies accordingly. "The
best retailers are moving toward using an understanding of how customers buy, and turning it
into a plan for marketing to them," says Forrester's Kinikin. The key tool needed to drive this
development is point-of-sale systems that can quickly and accurately capture customer data at
the transaction stage. But the problem of training sales reps and motivating customers to give up
their information remains.
As long as the retail sector is focused on cost savings, versus revenue enhancements, its
customer strategies will be limited. Few retailers have reached the level of developing an
enterprise-wide customer strategy, with an understanding of customer value and a plan to
increase that value. Today, retailers are just looking for the quick hits of CRM, like screen pops
for call centers, and email campaigns to drive store traffic.

GOAL OF CRM:
The idea of CRM is that it helps businesses use technology and human resources to gain insight
into the behavior of customers and the value of those customers. With an effective CRM
strategy, a business can increase revenues by:
providing services and products that are exactly what your customers want
offering better customer service
cross selling products more effectively
helping sales staff close deals faster
retaining existing customers and discovering new ones
HOW TO BEGIN FOR CRM
It doesn't happen by simply buying software and installing it. For CRM to be truly effective, an
organization must first understand who its customers are and what their value is over a lifetime.
The company must then determine what the needs of its customers are and how best to meet
those needs. For example, many financial institutions keep track of customers' life stages in order
to market appropriate banking products like mortgages or IRAs to them at the right time to fit
their needs.
Next, the organization must look into all of the different ways information about customers
comes into a business, where and how this data is stored and how it is currently used. One
company, for instance, may interact with customers in a myriad of different ways including mail
campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and
marketing and advertising efforts. CRM systems link up each of these points. This collected data
flows between operational systems (like sales and inventory systems) and analytical systems that
can help sort through these records for patterns. Company analysts can then comb through the
data to obtain a holistic view of each customer and pinpoint areas where better services are
needed. For example, if someone has a mortgage, a business loan, an IRA and a large
commercial checking account with one bank, it behooves the bank to treat this person well each
time it has any contact with him or her.





Article about big bazaar:
According to article in Business standard by NamrataAcharya, Kolkata September 19,
2013 big bazaar aims to generate a third of its revenues from fashion
Retail chain big bazaar is planning to churn its product mix, so as to generate at least one-third of
revenue from the fashion segment. At present, the fashion segment accounts for a quarter of the
revenues of the Future group-led retail stores.

Notably, last year, Future Group had sold its controlling stake in Pantaloon, its fashion flagship
store, to the AV Birla Group. Since then, it has been planning to realign its product mix with a
focus on garments.

We are introducing a new autumn-winter collection in stores. We are bringing local celebrity
connect, which connects with the audience here. We want the fashion segment to account for
one-third of our business, said AkshayMehrotra, chief marketing officer, Future Group.


The company would focus on generating volumes in the fashion segment to stick to the budget
segment of clothing, and to move away from the concept of hyper market to value departmental
stores, he added.

With a view to revamp the fashion segment, Big Bazaar would also open about 15-20 new
standalone FBB (Fashion at Big Bazaar) stores. At present, the company already operates 29
FBB stores.

Future, formerly known as Pantaloon Retail Ltd, and Future Ventures India, recently demerged
their fashion businesses into a new listed unit. Under the restructuring, all fashion brands held by
Future Retail and Future Ventures were transferred to Future Lifestyle, which focuses on over 24
popular fashion brands and retail formats like Central, Brand Factory, Planet Sports, I m in and
aLL.

Recently, Future Group launched its direct selling service called Big Bazaar Direct which would
allow customers to directly place orders with appointed Big Bazaar franchisees.





Article on shoppers stop:

According to the article in Thehindu by priyankapani Shoppers Stop plans big growth in small
towns, Mumbai august 5 2012
Within six months of launching a store in Jaipur, Shoppers Stop Ltd had to revamp the entire
merchandise mix after buyers complained that they didnt find many brands which they had
bought at the store in Delhi or Mumbai. It is now one of the most successful and profitable stores
for the big box retailer. It was in 2010, when the company started charting out plans to tap the
opportunity in small towns.
Another interesting finding for the Mumbai-based retailer was that Lucknow market demanded
more premium watches and accessories, while high-end ethnic wear was a major hit in Agra
GovindSrikhande, Managing Director of the K. Raheja group-owned Shoppers Stop, is investing
heavily in studying these markets, which a few years ago was not even on the companys radar.
The company is now entering small towns such as Latur, Siliguri, Vizag, Surat and Raipur.
Aspiration level in small towns is growing. They dont want to be treated as second class
citizens and are demanding premium brands. However, we just need to get the model and
customer strategy right. For example, in those towns corporate and formal wear will not work,
Srikhande said.
Of the 55 Indian towns with a million plus population, Shoppers is already present in 28 towns
and will open stores in another 10 this year at Rs. 8 croreinvestment per store. Shoppers Stop Ltd
runs formats Shoppers Store (departmental store), Hypercity (hypermarket), Homestop
(furniture and furnishings) and Crossword (book store). At present, the company has 63 stores
and plans to take it to 75 in this fiscal.
According to industry estimates, as of 2013, India's retailing industry was essentially owner
manned small shops. In 2010, larger format convenience stores and supermarkets accounted for
about 4 per cent of the industry, and these were present only in large urban centres.
The company also plans to enter these small towns with premium brands (which rank below
luxury brands in retail industry lingo). Shoppers Stop already offers luxury brands such as
Tommy Hilfiger, Estee Lauder and Bobby Brown at its stores. Will premium brands improve the
stores success in these towns? The answer is a resounding yes from Srikhande.
We are very carefully entering markets by studying the demography. For us the presence of
multiplexes, colleges or a McDonalds or Pizza Hut is a very important indicator. This indicates
the amount of money people are willing to spend. This is driving our expansion strategy,
Srikhande added.

Article on pantaloons:
According to article in Business standard by raghavendrakamath Pantaloons to open new
formats, add categories
After being acquired by Aditya Birla Nuvo last year, department store chain Pantaloons today
said it was looking to open new formats and enter new cities as part of its growth strategy.

Pantaloons Fashion & Retail, part of Aditya Birla Group, runs 95 stores with a total area of 1.7
million sqft in the country now.
"We are constantly growing our domestic market. We intend to enhance our customer base
through increasing our presence in various cities in India. We intend to increase our share in
consumer spending by launcing new formats or by adding new categories," Pantaloons said in an
annoucement to its shareholders today.
Last year, Aditya Birla Nuvo acquired the controlling stake in Pantaloons, the fashion format of
Future group, in aRs 1,600 crore deal. Pantaloons was demerged from Pantaloon Retail (now
known as Future Retail) and transferred to Peter England Fashions and Retail, a unit of Aditya
Birla Nuvo.
The company has changed the objects of the company to include all kinds of goods, materials
and items, and services.
Name of the company was changed from Peter England Fashions and Retail to Pantaloons
Fashion and Retail after April 23,2013.
"The demerger of demerged entity to the company will expand the variety of offerings in the
market and complement existing portfolio," it said.
Pantaloons posted a loss of Rs 68.89 crore on a income of Rs 1,285.14 crore in financial year
2013.The company owns 8 private brands which contribute 22% of sales.







LITERATURE REVIEW
CRM implementation in Retail
Prof. (Dr.)CKDash

Mr. Tapas RanjanMoharana
**

Mr. NiharMohapatra
***


Today Customer Relationship Management (CRM) has become a strategic initiative in most
companies. Reason being the growth of service sectors in general and growth of Organized
Retail in particular, advancement of digital technology, the shift among companies from market
share to share of wallet. CRM to some scholars and professionals means relationship marketing
& loyalty programme, to others data mining and analytics, and to still others, it means a
philosophy and way of life for the company to deliver customer satisfaction. The smart company
works for customers. They have a long term approach to business. Customer retention is the
purpose of their business. Profit is just the by-products. The challenge of CRM is not to build
customer loyalty, it is the fact the reverse: to build customer loyalty, it is in fact the reverse: to
build the organizations loyalty to the customer. You cannot retain customers if they are not
happy with your product or overall experience offered. Thus, a combination of customer delight
& loyalty is essential. If you want your company to remain a market leader, focus on customer
loyalty. This can be achieved by employing the mantras of appraisal, reward, and campaign. In
this paper an attempt has been made to study the significance CRM in organized retail sector.
How to make a successful CRM strategy /model for organized retail sector?

Key words: Customers Relationship Management( CRM), Customer Loyalty, Customer
Retention, Customer delight.

the business enterprise has two and only these two basic functions: marketing and
innovation








-Peter Drucker, Management (1973),

Retailing is becoming the blue-eyed sector of the new emerging LPG economy employing nearly
21 million people and generating revenues of approximately Rs. 9,30,000 Crore. Organized
retailing accounts only 3-4 percent of the entire retailing activities in the country. Standing on the
threshold of a retail revolution and witnessing a fast changing retail landscape, India is all set
experience the phenomenon of a global village India presents a grand opportunity to the world at
large, to use it as abusiness hub. To attract customers, organized retail stores need to generate
value and differentiate their outlets from otherunorganised retail stores. As rightly said, Retail
is Detail so organized retail players need to target their markets and manage the customer
experience in best possible ways.
This study analyzes the various factors that determine the customer experience in retail outlets.
The study identifies strategies to retain and attract more customers by creating a memorable
shopping experience. Every one of us does render some service or other. If we cultivate the habit
of doing this service deliberately our desire for service will steadily grow stronger, and will make
not only our own happiness but that of the world at large.
Retail, according to Concise Oxford English Dictionary is the sale of goods to the public for use
or consumption rather than for sale. Retailing is the business activities that add value to the
product & services, sold to the customers for their personal or family use. Considered to be one
of the most happening industries after IT, retailing industries has many big players competing
with each other to gain an edge over the other. Owing to a steady increase in private
consumption, retailing has become one of the hottest sectors of the emerging economy


The objectives of the study are:
1. To know the retail scenario in India in a nut-shell.

2. To identify areas for improved customer retention to attract new customers by offering a
perfect environment to shop.





Methodology:
For this study a structured questionnaire has been developed and administered among the
customers who visit the Formats of Pantaloon future group, Vishal Mega Mart &Subhiksha,
Mother Diary, Shoppers Stop, Spencer & Reliance Fresh in NCR region of Delhi, Noida,
Gurgaon from January March 2008. Total number of sample taken is 250.

Sampling procedure applied for the study are conveniences sampling particularly the customers
who visited the store during the time of survey and randomly from the different formats of
organized retail available the scope of the study.

Retail Scenario in India:
Retail innovation has been unprecedented in the last decade of the twentieth century. Lee and
Vryza argued that retailing had not only .been a highly innovative force in the Market place
(1994, p.54) but also had a much wider impact on society overall. However they expressed
concerned about the dearth of literature on retailing innovation, in contrast to areas where a
richer body of work had developed. Merrilees and Miller (1996) reviewed the dramatic
transformation retailing in Australia from 1946 onwards. They discussed innovative retail
formats and what they termed the ever-changing nature of retail competition (1996, p.18).
Retail innovation will be manifested in a variety of forms. Such formats range from minor
changes in the retail mix, through minor and major makeovers, related and unrelated brand
extensions, novel combinations such as supermarketsand in-store banking, and new service
delivery systems such as online retailing. An important paper by Rosenberger III Merrilees and
Miller (1999) proposes a new typology for retail innovations, with seven types classified. These
include brand extensions within an allied field (McCafe by McDonalds) and brand extensions in
an unrelated field.
Retailing is evolving into a global high-tech business. Retail is on a roll in India. The entry of
global retailers will change the landscape of retail in India. India has emerged as the most
attractive destination for mass merchants outperforming China for the second year in row,
according to global consulting firm A.T Kearney. A.T. Kearneys Global Retail Development
Index (GRDI), which ranks 30 emerging countries based on a set of 25 variables including
economic and political risk, retail market attractiveness and retail saturation levels, has retained
Indias position at the top. The Indian retail market is gradually but surely opening up, while
Chinas market becomes increasingly saturated. With the dawn of 21
st
century, as we are in an
economy showing signs of splendid rise during past years and promising the same for the
coming future, retail industry as a whole has been described by many to be a sunrise industry
more specifically in Indian context. One report from IMAGES- KSA Technopak estimates
organized retail in India of worth Rs 350 billion though currently constituting only 3.4 percent of
retail sales promises to grow at over 30% and is projected to cross Rs. 1000 billion mark by
2010. In addition to that India tops A T Kearney list of emerging markets for global retailers to
enter and the Indian economy is also expected to overtake Britain in 2022 and Japan in 2032 to
become the third largest economy in the world after China and US.

The growth of the Indian economy is no manifesting itself in the growing purchasing power of
its citizens. The demand for a variety of goods, both consumables and durables, is expectedly
growing significantly. Easier availability of goods, consequent to lowering of import duties and
liberalization of trade regulations has also added to the appetite for purchases. A ten or twelve
per cent increase in the economys disposable income and a much higher one in urban areas is
also reflecting itself- in the way goods and services are bought and sold. Modern retailing or
organized retailing, in contrast to the traditional small and stand-alone stores which dominate the
Indian Market, is growing today by over 25% annually.
Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape,
India is all set to experience the phenomenon of a global village. India presents a grand
opportunity to the world at large, to use it as a business hub. A Vibrant Economy, India tops A
T Kearneys list of emerging markets for global retailers. The second fastest growing economy
in the world, the 3
rd
largest economy in terms of GDP in the next 5 years and the largest
economy in PPP terms after USA, China, and Japan, India is rated among the top FDI
destinations. India also tops the annual list of most attractive countries for international retail
expansion, according to A.T. Kearneys Global Retail Development Index 2006. It is very rightly
reported that the Indian retail market is gradually but surely opening up, even as other markets
become increasingly saturated. India is at the peak of attractiveness for retailers right now as its
USD 270 billion retail market continues to grow at the rate of 13 percent and all indicators seem
to suggest that there can only be further acceleration from her on. Indias miniscule organized
retail market has gained the momentum required to propel it to the next phase of real rapid
expansion: at prevailing prices, this segment grew 42 percent in 2006.






The Retail Revolution:
Retail revolution, which is happening in India today has one important and inevitable logic, i.e.
with the growth of the country, more people have started buying more things for which products
have to be available and subsequently requiring more shelf space. The landscape of cities are
witnessing many changes in terms of new generation of retail outlets, which are fuelled by huge
sums of money being poured in to real estate, modern logistics and most importantly creation of
new retail brands. It would be important to note that the retailing industry in India is still a
Protected Industry. It is one of the few sectors which still have restrictions on FDI. Given the
current trend in liberalization, it will not be long before the retailing sector is also thrown open to
international competition.
Indian Retail has witnessed rapid transformation in many areas of the business by setting
scalable and profitable retail models across categories. Indian consumers are rapidly evolving
and accepting modern retail formats overwhelmingly. The traditional markets are fast loosing
their shine, making way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores. Malls are coming up not just in metros but also in second-
categories cities, introducing the Indian consumer to a shopping experience like never before.
These modern shopping complexes are becoming the destination point for shoppers as well as
window-shopping, entertainment, food, all of it under one roof. In India among 15 million
retailers, most of them owning small mom and pop outlets, we are likely to have no less than 100
million square feet of shopping, centre space by 2007-08, generating retail sales to the tune over
Rs. 50,000crore. Reliance Retail alone is taking about 3.5 to 5 million square feet of retail space
by March 2007, for only one of its retail verticals.
Large corporate groups like ITC, reliance,, Tata, Raheja and existing large retail retailers like
Pantaloon Retail India limited, the jubilant group and others are infusing staggering amounts of
capital into the organized retail sector and at the prevailing pace of development it is estimated
that India will have close to 50million square feet quality retail space by the end of 2007.Like
Wal-Mart has formalized its India entry and other leading global retail power houses are also
busy working out their entry plans, we can safely say that an additional 700 million square feet
of quality retail space from the existing level will be required by 2010 there will be an
investment of over Rs. 20,000crore in quality retail space across the country.
Already, special stores are proliferating, selling everything from books to healthcare and from
home furnishings to apparel. But ultimately it will be the large-format supermarket and
hypermarket stores that will account for the largest share of investment. Industry studies
indicates that todays total of 50 hypermarkets will grow to 1,200 across India by 2011, at which
time there will be 3,000 supermarkets twice as many as there are today. India has witnessed ten-
fold growth in four years, total mall space has increased from just about two million square feet
in 2012 to over 21 million square feet in 2013.
Corporate houses like the Reliance Industries, A V Birla Group, Tata Group, ITC & others have
announced grandiose plans for investment in retail sector; worlds largest retail Wal-Mart also
inked its India entry joint venture deal with telecom major Bharti while Metro is planning rapid
expansion all this should ensure large inflow of funds for the retail sector.

Table-I : Indian Retail Market 2013:
INDIA RETAIL MARKET 2013 (at current Prices)
Retail
Segments
Indian Retail Value
(Rs. Crore)
Organized Retail
(Rs.Crore)
%
Organized
in 2006
Clothing, Textiles &
Fashion 113,500 21,400 18.90%
Jewellery 60,200 1,680 2.80%
Watches 3,950 1,800 46%
Footwear 13,750 5,200 37.80%
Health & Beauty
Care Services 3,800 400 10.60%
Pharmaceuticals 42,200 1,100 2.60%
Consumer Durables &
Home appliances 48,100 5,000 10.40%
Mobile Handsets &
Accessories 21,650 1,740 8.00%
Furnishings, Utensils, 40,650 3,700 9.10%
(Home & Office)
Food & Grocery 743,900 5,800 0.80%
Catering Services
(F&B) 57,000 3,940 6.90%
Books, Music & Gifts 13,300 1,680 12.60%
Entertainment 38,000 1,560 4.10%
Total 1,200,000 55,000 4.60%
(Source: India Retail Report 2014)
Table 1 depicts that food and grocery segment is having maximum Retail value (Rs.743, 9000
Crore) which is followed by Clothing, Textile & Fashion (Rs. 113,500Crore).But the organized
grocery segment is only able to attract 0.8 percent of the totally grocery market.

This indicates the growth of organized retail in grocery items is encouraging & fast moving. On
the other hand footwear segment is having growth rate in 2006 i.e. 37.80 followed by Clothing,
Textiles & Fashion (18.9%) and Books, Music and Gifts (12.60%).














Figure I: Indian Retail Value (Rs. In Crores)



Economic Impact of Indian Retail Sector:
India is the eighth largest retail
market
in the world and is poised for explosive growth. The retail market is growing by leaps & bounds
and is expected to touch USD 637 billion in 2015, with a terrific growth rate of 50 per cent.
Almost half of the Indian retail market in 2006 was in rural areas. The Indian retail industry at
about USD 300 billion, accounts for nearly 37 per cent of Indias GDP. The Retail market is
poised for explosive growth rate of 8 per cent. That does mean higher growth for Indian retail
industry due to increase in disposable.

Indian Retail Value (Rs. Crore)
Clothing, Textiles &
Fashion
Jewellery
Watches
Footwear
Health & Beauty Care
Services
Pharmaceuticals
Consumer Durables &
Home appliances
Mobile Handsets &
Accessories
Furnishings, Utensils,
(Home % Office)
The Indian Retail Opportunity GDP at currentprices (US$ ) in Billion
0
500
1000
1500
2000
2005-06 209-10 201-15
The Indian Retail Opportunity
GDP at currentprices (US$ )
in Billion



Figure II: The Indian Retail Opportunity GDP at current prices (US$)

The high private consumption is one of the major factors for the growing retail industry. Over 62
% of the private consumption share is towards the retail sector, of which 55% is the contribution
from the rural areas, indicating the increasing significance of retail presence in rural areas.

Implementation of CRM in Retail:
The building & management relationship with customers has always been a key approach to
marketing practices in general & retailing in particular. AMA (1995), Relationship marketing is
marketing with the conscious aims to develop & manage long term and/or trusting relationship
with customers, distributors, suppliers, or other parties in marketing environment. A band of
loyalty is likely to develop between shopkeeper and the regular customer. Pathmarajah (1993)
defines relationship marketing as the process where the seller and the buyer join a strong
personal, professional and mutually profitable relationship over a time.
Following are few suggestions in order to maintain long term relationship with the customers in
an organised retail.

1. Retailers have identified generating interest in a uniformed new customer is more
difficult than to retain the existing customer. It is easier to satisfy an existing customer
than to attract a new customer to the store. A satisfied customer is better form of
advertising. A satisfied customer will purchase more and more product from your store.

2. Through retaining a customer your can make a customer satisfied. A satisfied can be
referral to a new customer. Instead of running after new customer to your store you can
make your existing customer retain by which he can be referral to new customer.

3. Good relationship with customers can result in good work of mouth from successful
exchanges and minimal bad work-of-mouth in the event of unsuccessful exchanges.
Service quality cracks can often be papered over where good relationships have existed
previously.


4. Close and long term relationships with the customers imply continuing exchange
opportunities with existing customers a lower marketing cost per customer.


5. Strong customer relationship with a high degree of familiarity and communication on
both sides can generate more practical ideas from customers and contact personnel.

6. Loyalty programme like special discount by issuing loyalty cards in order to provide
them better service and other special benefit if any can be provided to them.

7. The last but not least suggestion to maintain CRM in retail is to think to provide Every
Little Helps to the customer. Think always how are you going to do a better job for
them? No doubt it will change the behaviour of your retail business.

8. Encourage mutual loyalty.

9. Create value to the customers to earn their lifetime loyalty.

REFERENCE:

1. Levy, Michael &Weitz, Barton A. (1995) Retailing Management, United States of
America, IRIWIN.
2. Indian Retail Report (2007) Images F&R Research, Images Multi Media Pvt. Ltd. Delhi.
3. Gilbert David, (2004) Retail Marketing Management, Pearson Education, Delhi.
4. Gupta, S.L (2007), Retail Management, an Indian Perspective, Text & Cases, Wisdom
Publication, Delhi.
5. Lamba, A J. (2003), The Art of Retailing, Tata McGraw Hill, New Delhi.
6. Ogden R. James & Ogden T. Denise, (2005) Integrated Retail Management Indian
Adaptation Biztantra, An imprint of Dreamtech Press, New Delhi.
7. Seth Rakesh& Seth Kirti, Creating Customer Delight, The how and why
8. Underhill, Paco (2004), Call of the Malls, Simon & Schuster, New York
9. Levy, Michael &Weitz (2003), Barton A, Retailing Management, Fifth Edition, Tata
McGraw Hill Publishing Company Limited, New Delhi
10. Pradhan, Swapna (2007), Retailing Management, Text & Cases, Second Edition, Tata
McGraw Hill Publishing Companies, New Delhi.
Web references:
a. www.retailyatra.com
b. www.about.retailindustry.com
c. www.imagesretail.com
d. www.ibef.org
e. www.businessworld.com
f. www.domain-b.com


OBJECTIVE OF CRM IN RETAIL
TO STUDY THE CURRENT PRACTICES OF CRM IN RETAILING.
TO FIND OUT THE IMPACT OF CRM ON THE RETAIL SHOPS.
TO STUDY THE FACTORS AFFECTING THE CRM PRACTICES.
TO STUDY THE METHODS AND TOOLS FOR IMPLEMENTING CRM IN RETAIL
SECTOR.
TO STUDY THE NECESSITY OF CRM IN RETAIL SECTOR AS WELL AS
SUGGESTING THEM THE WAYS FOR SUCCESSFULLY IMPLEMENTING IT.