1.

RETAIL MANAGEMENT Customer RelationshipManagement @ Big Bazaar & Reliance Mart

SUBMITTED BY: Deepak Majhi 03 Nancy 05 AritroMukherjee 07 Raja Rowin 35 Gunjan Parmar
42 Lalit Mukul Kindo Vijay Mishra Anuradha 63 Anurag Singh Ritu Kumari - 1 1 69 77

2. TABLE OF CONTENTSCHAPTER CHAPTER NAME PAGENO. NO.Chapter 1 Introduction 1

Meaning of CRM Goal of CRM Evolution & growth of CRM Options for implementing CRM Various
aspects of CRMChapter 2 Research methodology 8 Objective of research Type of research Data
collection technique Sampling procedures & sample size Limitations of the researchChapter 3 CRM @
Reliance MartChapter 4 CRM @ Big BazaarChapter 5 Customers opinion about CRM @ Reliance Mart &
Big Bazaar Sales persons assistance Expectation fulfilment Discounts & failures Product arrangement
Accessibility preferenceChapter 6 Comparison between CRM @ Reliance Mart & Big BazaarChapter 7
Conclusion & recommendation 2

3. CHAPTER 1 INTRODUCT INTRODUCTION IONit is not enough to have great qualities, we

should also have the abilities to manage them.The same concept can also be applied in an organization.
For e.g. a company may produce avery high quality products but it wont be able to succeed if it fails to
manage or satisfy theircustomers.According to Harward Business Review an exceptionally satisfied
customer is 6 times morelikely to buy again as one who is merely satisfied & only 5% increase in
customer loyalty canboost profit from 25% to 85%.Thus all these quotes & experts opinion highlights the
importance of Customer RelationshipManagement. Customers are considered to be king of every
business enterprise and loyalcustomers are the backbone of their business. So customer satisfaction is
the primary motiveof every business which can be attained through effective CRM (Customer
RelationshipManagement) policy1.1 Meaning of Customer Relationship Management (CRM):CRM is a
comprehensive strategy & process of acquiring & retaining customers to createsuperior value for the
company as well as the customers. It consists of the processes acompany uses to track and organize its
contacts with its current and prospective customers.To support these processes, various CRM Software
like SAP, ORACLE Sales force.com etc.are used. These software record and store information about
customers, various customerinteractions, their problems etc which can be accessed by employees in
different departmentsof the company. These information are used by the organization to make future
plans that cansatisfy the customer on a better way and retaining them for a longer period.1.2 Goal of
CRM:The goal of CRM is to provide improved services to the customers, and to use customercontact
information for targeted marketing. 3

4. 1.3 Evaluation and growth of the CRM:CRM passes through three generations such as 1st
generation in 1990, 2nd generation in 1996and the 3rd generation in 2002.In 1st generation following
systems were applied for CRM:- Call centre management-It is a web based CRM technology, the
enables users browsing a companys web site to leavea phone number where company representative
can call back with more information. Customer service support-It is a part of a companys CRM
department that interacts with a customer for theirimmediate benefits. Sales force automation-It is
software that automates business tasks like inventory control, sales processing, customerinteraction, etc-.
Campaign management-It is a planning, executing, tracking and analyzing of direct marketing
campaigns.In 2nd generation following improved systems were used for CRM:- Integrated customer
facing front end-It is face to face interaction between the customers and sales man. This system is used
formarketing, sales and services. ERP integrations-ERP stands for Enterprise Resource Planning. It is
a business management system thatintegrates all functions of the business. Customers analytics-It
comprises all the programming that analyzes data about an enterprises customers forbusiness decision.
Complete web integration-It allows end users to have access the data function of a serve hosted
application throughinternet browser window. 4

5. In 3rd generation the strategic CRM was followed and is continuing- Strategic CRM updates
and expands the original content and combines into one,convenient value that guides users through the
entire CRM implementation process, fromstrategic planning software.Scope and goals of different
generations:- There is successful increment in the scope of CRM from 1st generation to 3rdgeneration. In
1st generation the scope consists of service function and sales function, in 2ndgeneration it includes
another function i.e. marketing function and in 3rd generation itincludes entire function of the organization.
Goals of the CRM have also changed with better customer service from 1st generationto 3 generation. In
1st generation the goals were improve service operation and increase rdsales efficiency, in 2nd
generation reduce cost of interaction, improve customer experiences,and increasing the customer
interaction; in 3rd generation cost reduction & revenue growthand competitive advantages. 5

6. 1.4 Options for Implementing CRM:Increasing customer is not the ultimate objective of any
organization but to retain customerand t build long term relationship with them is important. It is only
through CRM that aprospect can be turn into customer and then finally into a client. But to achieve these
anyorganization require proper implementation.But at the same time CRM implementation is a
challenging task because it ties together manypeople, process, technologies within the organization which
are separate from each other. 1) IN HOUSE DEVELOPMENT- This means all the strategies, processes
are developed and implemented within the organization.Advantage- 1. It is tailored made according to

organization needs and structure thus is flexible as compared to others. 2. Avoid dependency on others
be it software or outsourcing.Disadvantage 1. It is at the same time expensive 2. And comparatively takes
longer time depending on the organisation. 2) BUY LICENSED CRM SOFTWARE- This is purchasing
software and implementing in organization.Advantage- 1. Usually the maximum chance of success. 2. It
just need to install and trained the workforce accordingly.Disadvantage- 1. Again it is expensive because
of many costs as license cost, renewal cost etc. associated with it. 2. Adding new software with change is
a complex task. 3) OUTSOURCING A MANAGED SERVICE- This means hiring from outside.Advantage1. Most of the times lower cost. 2. Can adopt pay- as- you go approach with visible
result.Disadvantage- 1. For any new requirement needs to contact the company and pay for the
development. 2. Also there is a risk of losing CRM solution investment if outsourcing company goes out of
business 6

7. Implementing CRM: The Decision Process Stage-wise Purchase and install a implementation
complete CRM solution from a vendor Decision To Implement an YES Implemen enterprise-wide t CRM
CRM program Entirely outsource the CRM application process NO In house developmentSTAGEWISE- In
this CRM software is offered in different, independent modules, accordingto specific department
needs.Company

buys

sales

automation

software

and

contact

management

module

from

differentproviders.ENTERPRISE WISE CRM SOLUTION- This is composed of different modules

fromsame

providers;

it is implemented

as a whole

by connecting different modules and

existingdatabase.1.5 VARIOUS ASPECTS OF CRMCRM includes many aspects which relate directly to
one another: Front office operations Direct interaction with customers, e.g. face to face meetings,
phone calls, e-mail, online services etc. Back office operations Operations that ultimately affect the
activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance,
manufacturing etc.) 7

8. CHAPTER 2 INTRODUCT RESEARCH ION METHODOLOGYResearch is a systematic and

objective investigation of a subject or a problem in order todiscover relevant information or principles.
Research methodology is basically the methodof how to collect data. The information regarding our
research are as follows:2.1 Objective of our research: We wanted to understand as well as compare the
customerrelationship management followed by the Reliance Mart and Big Bazaar.2.2 Type of
research: Our research was empirical kind of research since we were dealingwith the behavioral or
qualitative aspect of customers and not the quantitative datas.herewe were not supported with any
exterenal data nor were adopting any secndory data to doour reaserch.2.3 Data collection and analysis:
collection, and analysis of the information gathered byInteraction with employees and customers and also

by observing activities of theemployees. For better understanding of CRM in Big Bazaar and Reliance
Mart we also hadprepared a questionnaire for both customers and managers.2.4 Sampling procedure and
sample size:persons selected by us were randomely selected.and were from different age group,sex and
educational backgroun .this diversification wasdone to measure the different choice and preferences
prevailing in customersdemographycally different.2.5 Limitations of our research: 1. Our sample size was
composed of only 20 customers which is extremely small sample torepresent entire population of
customers who visit in these two retail stores.2. No demographical or psychographic differences was
considered before choosing thecustomers for interview purpose.3. many of the policies which were not in
force due to smaller market potential theirdescription is also been provided by managers. 8

9. CRM @ Big bazaar & Reliance Mart Customers Organizationspoint of view point of view 9

10. CHAPTER- 3 CRM POLICY OF RELIANCE MARTCRM policy of reliance mart can be divided
into four major parts, namely; 1) Customer loyalty 2) Customer retention 3) Customer communication 4)
Customer gratificationThere exists a blanket customer relationship programme called the reliance one
membershipprogramme for the purpose of maintaining customer loyalty. The membership programme isa
very simple one where a willing customer is required to fill a form giving personalinformation and he gets
a temporary card which will be made permanent after six months.On each purchase of rs. 100 the
customer gets one redeemable point on the production ofcard at billing counter. The collected points can
be redeemed in form of discounts on futurepurchases on demand of the customer.The customers also get
the opportunity of availing four different kinds of insurance on thepayment of a nominal fee. For example a
customer can get an accidental death insurance of rssix lakhs on the payment of rs. 400 only.Other forms
of insurances are disability, hospitalization and home insurances.The members of relianceone get the
opportunity of taking part and winning prizes by the wayof lucky draws on regular intervals.Customer
retention policy implementation is at the zonal level. Generally each state isregarded as a zone and the
offers and discounts in a zone are not available in other zones.Such policy helps reliance retail to
understand and capture the local markets better.The products which show improvement due to offers and
discounts on them are repeated withthese offers again so as to retain the sales of the customers who
bought it the last time.Also such the days best offers are constantly announced in the store making the
regularcustomers aware about them.Maintaining a good store ambiance is also a part of customer
retention policy of relianceretail. Clean and hygienic environment with properly and well spaced products
along with auniform color theme attracts the existing customers to the store again and again.A fast billing
system and good and easy grievance handling system which can be accessedthru customer service desk
and company website, ensures that customers feel satisfied withthe store management. Less harassment

to customers means better customer retention.Communication to existing customers takes the form of
sms and e-mails, generally sent toreliance one members. They get information about ongoing offers and
also information andlatest news about their nearest stores and the company in general.Another source of
customer database is the information collected during the organizing ofspecial events in the stores.
Customers participating in such events provide their contactinformation which are also used in form of
database for communication purposes.Thank you and festive cards on special occasions are an
innovative way of communicatingwith the customers.Trained salespersons make customer gratification
very easy. A simple thank you with a smilegoes a long way for the store to keep the customers happy. 10
11. The special events organized by the stores across india are also a way to gratify the

customersby allowing them to play and win prizes.Gift vouchers and discount coupons are an attraction
for the customers and give them the feelthat the store cares about them and their money.Local customers
many a times make limited personal contacts with the store staff just likethat made at a kirana store and
help the store to some extent to maintain a relationship withthe customers.The implementation of the
policies brings out certain limitations in them. Few major ones areas followsThe personal contact
numbers of reliance one members are open to tele marketing calls fromvarious marketers as they leak out
of the reliance retails database, causing unnecessaryharassment to customers.The customer
communication policy is less followed in small towns and cities and is moreconcentrated towards the
metro cities.There is a common crm policy for both reliance fresh and mart. This should not be the case
asboth the stores offer different kinds of merchandize and generally attract different kinds
ofcustomers.Reliance retail generally delays the processing of permanent membership cards to
thosecustomers who have not paid for such a card. Customers have been waiting for over threemonths
for their card. Those who have paid the nominal fee of rs. 50 get their permanent cardwithin 15 days but
the rest who have optioned not to pay the fees do not receive the card untiltoo late.Unmanned billing
counters create long queues at the open counters. This creates impatiens inthe customers as they expect
faster billing at the stores and do not want to stand with toomuch of goods held in their hands while billing.
11

12. CHAPTER 4 CRM @ BIG BAZAAR Database is formed through the issue of future card and
card is of three types silver card, gold card and sakthi card. Sakthi card is issued to ladies and this card
provides, free sugar(1 kg) per month. Customer profitability analysis (CPA) is done on the basis of
transactions made through the future cards. o Platinum customers (most profitable). o Gold customers
(profitable). o Iron customers (low profitability but desirable). o Lead customers (unprofitable and
undesirable). Differentiate customers in terms of: (1) their needs and (2) their value to company. Interact

with individual customers to improve the knowledge about individual needs and to build stronger
relationships. There are four type of analysis done for analysis of CRM o Periodic Surveys: Its done on
quarterly, its an overall survey done by the future group authorities and CRM is a part of it. o Customer
Loss Rate : o Mystery Shoppers: They pose as normal customers perform specific tasks such as
purchasing a product, asking questions, registering complaints or behaving in a certain way and then
provide detailed reports or feedback about their experiences o Monitor Competitive Performance
Complaint Handling Procedures: Screening And Logging -- The type of product or service;
manufacturer/brand name; model name/number; date of purchase/contract; warranty expiration date;
salesperson; cost of product/service; date problem occurred; and a description of the problem is listed.
This allows organization to exercise control, and assure proper follow-through. Investigating -- customers
explanation of a problem provides much information. Nevertheless, to assure they have all the information
needed for a thorough review of the facts involved, by: o Researching in-house records on the customer; o
Requesting receipts, or other records; o Inspecting the product, or service performed; and o Following-up
with the customer for any necessary additional information. 12

13. Acknowledging -- When Big Bazaar cannot resolve an issue immediately, it is important to let
customer know that the matter is receiving attention. Customer is given information about how long it will
take to complete action on the complaint. If there is further delay, its made sure to advise customer why
and when Big Bazaar expects to have an answer. Formulating A Solution -- solution is made to be
consistent with established customer relations policy and important criteria are taken into account: o
Contractual and/or warranty obligations; o The customers expectations; o expectations of the customer; o
The cost/benefit of alternative solutions; o The probability and cost of customer seeking redress in some
other way; o The comprehensiveness and fairness of solution; o ability to perform the solution; and o
What to do if the customer rejects solution. Responding -- The response is made clear and appropriate.
The customer must understand the response, and the response must address the issues raised in the
customers original complaint. An explanation of decision preserves the goodwill of customer, even if the
decision itself is adverse. Following-Up Customer is contacted following response to verify whether or
not the matter has been resolved satisfactorily. If customer is unhappy with response, organization refers
the matter to a third party dispute resolution mechanism for assistance. Steps Involved in customer
Satisfaction through Service: o Seeing problems from the customers perspective o Managing customers
"moments of truth" o Communicating effectively through better listening o Analyzing how customer
perceptions are formed o Managing anger and other service behaviors o Dealing with long-term
consequences of service breakdowns o Negotiating solutions 13

14.

Generating

an

action

plan

for

improved

on-the-job

effectivenessCUSTOMER

COMMUNICATION:Future group maintains its records of customers by observing their purchasing habits
&categories them into various groups like high revenue, moderate revenue & low revenuecustomers. They
communicate to the customers through various medium like SMS,E-mail,Mobile vans, Print media
etc.This is the way to built a strong presence in the existingcustomers & prospective customers. Presently
they are using oracle software to maintaindatabase. Recently they have tied up with California based firm
GREENPLUM to providenew software for data warehousing.The company boasts strong share of its
profits from top line customers who provide themaround 70% of their revenues in total. The company can
said to be going on the famousmanagement principle i.e. 80/20 PRINCIPLE which says that 20 percent of
variables cause80% effect. In big bazaar it can be related to the fact that 20% of its top line
customersprovide 80% of its revenues in a year. This is the reason why the retail giant is focusingstrongly
on customer retention in order to boasts its sales numbers substantially.CUSTOMER GRATIFICATION is
an important element of a sales process. Everycompany should survey their customers in order to find out
the satisfaction level among theconsumers. Big bazaar also conducts periodic surveys in order to
ascertain the satisfactionlevel in their consumers. Various activities are done in order to enhance the
shoppingexperience among buyers & various offers, discount coupons; exchange offers are initiatedby the
firm in order to develop a good satisfaction level in their existing customers. Specialcoupons are given to
customers who can be redeemed by the costumers in their futurepurchases from the store.CUSTOMER
PERCIEVED VALUE (CPV) is calculated by the retail store in order toasses the costs and benefits
received & given to the buyers. The following are some keyfeatures of CPV1. CPV is the difference
between the prospective customers evaluation of all the benefits andall the costs of an offering and the
perceived alternative.2. Total customer value is the perceived monetary value of the bundle of
economic,functional & psychological benefits customers expect from a given market offering.3. Total
customer cost is the bundle of costs customers expect to incur in evaluating,obtaining, using, disposing of
the given market offering, including monetary, time, energy &psychic costs. 14

15. LOOPHOLES:The retail store has also various loopholes especially here at ranchi.The major
drawbackwhich was found out initially was lack of proper parking place but now it has been correctedto
some extent. Secondly the store is very slow in execution of online orders which is giventhrough company
web portal FUTURE BAZAAR. To quote a few examples of latedelivery Mr. David Kerketta,a resident
of lalpur-peace road purchased a furniture for Rs37000,the date of scheduled delivery was 15th of
November,2008 but he received his order 37days late. One more incident of such late delivery is MR
Pradeep Kumar, a resident of UpperBazaar who purchased a dining table for Rs. 15000,but as usual he

got his final delivery awhopping 65 days late than the scheduled date of delivery. So these incidents
speak a lot ofinefficient delivery. The other drawbacks are inefficient billi.ng counters as they are
notupdated with the current offers and schemes. Also the billing counters remains unmanned thatadd to
the problem of customers who needs to stand in long queue in order to get theirpurchases billed. The
other problem is related to the slow processing of applications ofmembership cards like Shakti card, future
cards etc.It takes around 30 days minimum tobecome a member of future card schemes. This is very
slowly considering the industryaverage of 15-20 days to process a card. Finally the contact numbers of
customers are open tothe telemarketing personnel as they get the database from the future group through
somesources or the other. 15

16. CHAPTER 5 INTRODUCT CUSTOMERS POINT OF VIEW ION 1) Sales Persons

Assistance: This refers to the extent of help an individual gets from the sales person present in the store
in choosing a particular product or in case of any query. There can be two instances i.e. inadequate help
or excess help. Inadequate help is a very case because most of the time sales person is there to solve
our queries. Instances of excess help can arise which makes the customer feel that the person is
interfering in his decision or pushing the product to him.50% people preferred the sales person assistance
of reliance mart and only 35% preferred BigBazaar in this respect. 15% people were neutral that means
they thought it to be the same inboth the stores or they didnt need any such help from the sales person.
2) Expectation Fulfilment: every customer has certain expectations when he visits a store. This
expectation will vary from person to person. It can be getting a particular brand of product or particular
quantity or variant of the product. 16

17. 55% people felt that their expectations are more fulfilled at Big Bazaar while 45% preferred
Reliance Mart. This may be because of greater product depth at Big Bazaar than in Reliance Mart. 3)
Discounts & Offers: these are announced from time to time to lure customers to buy more.60% people
preferred the Discounts & Offers of Big Bazaar while only 40% preferred that ofReliance Mart. This may
be because more people are aware of the discounts offered by BigBazaar due to their huge
advertisements. 4) Product Arrangement: this basically means the sequence or order in which different
varieties, brands or segments of products are arranged so that customers feel at ease in selecting the
product of his/her choice. 17

18. 55% people preferred the product arrangement of Reliance Mart while 45% preferred that
ofBig Bazaar. This is because Big Bazaar has large space due to which products are morefragmented or
scattered on the contrary Reliance Mart has smaller space in which productsare more logically arranged.

Also it has more space between the shelves which provide easeof walking to customers and they think
less space means less energy wastage. 5) Accessibility: it refers to the reach of the store to the
customers.50% people preferred Big Bazaar, 39% Reliance Mart & 11% were neutral that
meansaccessibility doesnt matter to them. Majority likes Big Bazaar because it is situated in themain city
while Reliance Mart is located at a very posh area which is very far from the maincity. 6) Preference: it
refers to the preference of the customer regarding making a choice between the two stores i.e. Big Bazaar
& Reliance Mart. 18

19. On the whole 65% people prefer shopping at Big Bazaar and 35% people preferred to
doshopping at Reliance Mart. This may be because of any of the above mentioned reasons. 19

20. CHAPTER 6INTRODUCT ION 20

21. CHAPTER 7 INTRODUCT ION CONCLUSION Transformation by integrating customer facing

front-end with back-end systems and partners and suppliers. This will effectively help in generating better
filtered data source from feedbacks received. Also the feedbacks will be dealt with in a much more careful
and professional way. Growth of CRM facilitated by growth of IT. In this age of Information Technology an
effective IT planning on the CRM can help the organization earn a lot of repute. New database solutions.
This will help to filter and clean the raw data received from feedbacks more efficiently. Mutual benefit
through CRM. The stores and their customers can mutually benefit through the application of CRM. So at
this era of customers, the companies should project themselves as customer oriented as possible to
help them benefit in a long term survival plan. Effective segmentation of customers. With more and better
quality of data, this can be done very easily. Enhancing the shopping solutions. This is the age of
innovation. Especially in Indian markets, low cost innovation is the ultimate tool to win the battle for the
companies. Thus, the companies need to be innovative with their ideas and always try to deliver the
customer with some added value for their purchase. 21

22. RECOMMENDATIONSMany CRM project "failures" are also related to data quality and
availability. Data cleaning isa major issue. If a companys CRM strategy is to track life-cycle revenues,
costs, margins,and interactions between individual customers, this must be reflected in all
businessprocesses.

Data

must

be

extracted

from

multiple

sources

(e.g.,

departmental/divisionaldatabases such as sales, manufacturing, supply chain, logistics, finance, service

etc.), whichrequires an integrated, comprehensive system in place with well-defined structures and
highdata

quality.

Data

from

other

systems

can

be

transferred

to

CRM

systems

using

appropriateinterfaces.Because of the company-wide size and scope of many CRM implementations,

significantpre-planning is essential for smooth roll-out. This pre-planning involves a technicalevaluation of
the data available and the technology employed in existing systems. Thisevaluation is critical to determine
the level of effort needed to integrate this data.Equally critical is the human aspect of the implementation.
A successful implementationrequires an understanding of the expectations and needs of the stakeholders
involved.

Anexecutive

sponsor

should

also

be

obtained

to

provide

high-level

management

representationof the CRM project.An effective tool for identifying technical and human factors before
beginning a CRM projectis a pre-implementation checklist. A checklist can help ensure any potential
problems areidentified early in the process. 22