1.

INTRODUCTION
1.1 THE CONCEPT OF RETAIL

In French retailing means to break down bulk into pieces. And as such retailing can be
very well defined as a format in distribution network wherein retailer is a trader who
deals in selling very small quantities of goods/products. It is often referred as the final
step in the distribution network. Retailers are the one who deals with the end customers in
the chain of supplying of goods, while trading. All those marketing activities which are
undertaken for promotion of various goods and services are also a part of retailing.
Retailers sell goods to the final customers for fulfilling their various requirements
whether personal, family or household. But retailing activities does not include any kind
of direct interface between manufacturer and buyers (institutional). Retailing is a link
between whole seller and customer, they are important since their inception because they
are the one who are in close contact with the customers. Someone because of regular
dealing who knows more about the customers. Their basic function was to make the
goods available to customers. Retail transactions include not only the sale of tangible
products but also include services like financial services, beauty care saloons and dry
cleaning etc. Retailers are able to distribute the products and services as they are located
at a very convenient location and they also ensure focal point of customer preferred
selection and is concern about the display of the stock. Retail market is totally focused on
the concept of store loyalty .That means retailers were not exactly concern which brand is
the customer preferring or buying rather they are more concern with purchase activity to
take place from their retail outlet only. Retail is the interface between the retailers and
customer which is predominantly service oriented. Retailers had a tendency to purchase
small amount of goods on a very frequent basis. The main objective of retailing is to
provide convenient customer services in terms of suitable location, payment options,
range of merchandise, after sales services etc. Retailers always focus on offering a very
rich assortment of merchandise so as to facilitate choice to the customer. Retailers always
attempted to implement a pricing policy which can be easily molded according to the
customer choice and preference.
If we analyze he economic scene we find that largest contribution towards employment
and revenue is done by retail sector. Retailing can also be concluded as an approach
which focuses on direct dealing with the final customers for trading. According to David
Gilbert retailing can be understood as a business activity which has intended its efforts
towards pleasing the consumer. This can be done by selling and distributing goods and
services promptly. As it is very evident from the above definition that in retailing final
consumer is a key concept within the distribution chain, especially in this case where
retailer are at the end of the chain and directly interact with the end customer. Retailers
who were just a link between customers and manufacturers have now moved towards
forward integration. They have been now engaging themselves in direct association with
the customers. They have been involved in building outlets positioned at a very suitable
location. Rest nothing has changes like in this format also customer is the central and
most crucial point for every activity undertaken for promotion. Retailers play some very
important function, firstly because the interface between retailer and customer is totally
service dominated. Retailers are involved in very frequent sales as well as they sell small
quantity. They are more related with the convenience of the customers as they focus on
providing services to the customer in terms of suitable location, payment facilities (credit,
acceptance of various credit and debit card, giving membership for a particular outlet),
range of merchandise, after sales services etc. Retailers maintain right kind of
assortments so as to facilitate appropriate choice for selection to the customer. They also
undertake a pricing policy which keeps on modified depending upon customers’
requirements, demands and level of competititon. Retailing also involves various
activities of shopping, such as purchasing through internet, deals in financial services,
restaurants, etc. all this together indicated the complexities involved in the process of
retail operations. Due to the continuous changes in the marketing environment, term
retailing has undergone drastic changes, more correctly to say it has been totally
transformed. Retailing is collection of all business actions and tricks which add some
worth to the products and services. (Michael levy, Barton a weitz, 2003). Retailing is
carried out by retailers who try to satisfy consumer needs by providing the link between
the consumer and whole seller.
Retailing over the period has become a very important part of our lives. It is an important
aspect of our economic structure as well. Trading of goods and services have gone
through a total transformation now its more of a formal and brand dominated activity. It
has taken shape of a global, high-tech business, although it was restricted to
independently own small businesses. Which are still in existance along with organized
retail like departmental stores, speciality stores, shopping complexes, malls, large scale
multiple chains etc. Retailing is witnessing a very speedy growth rate and kind of growth
which is going to show an upward graph for a longer period. This type of mounting
fashion will continue for many decades. This is luring many new entrepreneurs from all
different fields. This lucrativeness of retail sector is further triggered because of many
factors present in the economic environment of the country. Few facilitator are present in
the economy which are further accelerating the pace of retail namely quality
maintenance, space provided to the retail outlets, better layout of products for easy
identification and a better assortment of products. Better communication strategy is also
adopted to promote brand name is also quite innovative and successful. Retail is
generating good and attractive employment opportunities which are giving a very speedy
shape to an attractive retail market in the country. Although Indian journey of retail
started in ancient times itself. India had adopted the concept of HAAT which are the
market which are involved in trading once in a week only. HAAT is a place where buyers
and sellers used to gather together for trading. This concept was very much acceptable
and popular in olden days.

There are predominantly two retail concepts in existance in the country right now. One is
unorganized retail and organized retail concept. Indian retail industry has started evolving
transformation that has swept other large economies. Indian economy has seen various
changes post liberalization. After that more focus was on privatization and later on
globalization. Globalization has made the whole world act like a single market. As a
result we witness changes in various aspects mainly because of the exposure which the
customers have got. Because of presence of well exposed customers their needs and
demands are continuously changing with the exposure rate. As a result more and more
marketers are also developing to cater to the wide and well exposed taste of customers.
Whole focus has been moving towards development. As a result the old and narrow
concept of shopkeepers has been totally transformed in the format of modern retailing.
Who have been continuously increasing their formats of conduct and adding on various
dimensions to their working. Now instead of traditional shop we are seeing more and
more number of especiality stores, departmental shops and malls.
1.2 THE INDIAN RETAIL MARKET
Initially the format of trading which was adopted in our country was barter system where
goods were exchanged in return of some other goods. In such type of trading arrangement
trading took place between people living in close proximity. Slowly people use to get
collected in those locations and that’s how a proper geographical location was allotted to
the trading transactions. This further marked the beginning of the development of trading
centers. As a result a much formalized system was taking shape. As a result needs of
almost all were met in these locations which were given the name of markets. In the
market place within the boundaries the number of people involved in business increased
day by day, which further gave rise to various issues like security and transportation. As a
result for every location and in formalized system was developed in the name of small
grocery shops. And later these grocery shops started providing more and more
combinations to the customers as the transportation facilities in the country were also
improvising. But as the needs and requirements of got exposed it was broaden day by
day. And on the other hand economy as well as business environment was also showing
its dynamic color. Slowly and steadily choice of customers also got transformed and on
the other hand sellers market was moving towards getting shape of customers market.
Customers’ choice regarding product assortments have been continuously accelerating
since then. Demanding a format of trading which was able to sell everything under one
roof what can be rightly called as a shopping experience. Various changes in the market
were taking place because of the transformation which was taking place in the lifestyle of
the customers. More and number of joint families got converted into nuclear families
because more and more job opportunities were available all over the country. This
promoted migration of people, as a result giving rise to increasing number of neuclear
families. With the passage of time because of high cost of living more and more families
opted for dual carriers. Because of which there was an upward movement towards the
disposable income and the purchasing power of families. But there was limited time
which a family can spend on fulfilling daily requirement of grocery. This marked the
increasing demand for more and more option which are able to provide all requirement
under one roof. And this is how a formalized format of retailing was demanded and came
into existance.
(AKHTER and EQUBAL 2012)Because of the change in the life style and pattern of
expenditure, change in the attitude of customer was also felt. People were now having
reasonable purchasing power and because of increase in the educational level and
employment. Percentage of job oriented population was accelerating, and these are
people who are well exposed with the outer world. These king of changing taste and
attitude of customers in our country marked the beginning of organized retail. Because of
its population organized retailing has been showing an upward movement only, and
because of its uninterrupted growth Indian retail sector has been ranked amongst top ten
markets in the world. Suddenly the lucrativeness of the market was evident which
attracted many players to enter in the market. This further demanded a proper vision in
the strategic perspective of the players who entered this segment. They were committed
to use all their resource capabilities to its fullest. And while analyzing the key
competitive areas various players have summed up analyzing consumer behaviour as one
of the key opportunity area, and every player is thinking of tapping and capitalizing this
opportunity by optimally utilizing their resources. All retailers are focused on developing
their core competitive area so as to develop a competitive edge.
Organized retail formats have soon have been readily accepted in the Indian terrain
because of man factors like large young working population (who are very keen in trying
new options), increasing number of nuclear families especially in urban areas, more and
more households with dual carrier options. These customers demanded a modern format
of retailing wherein shopping was an experience. Demand for complexes offering
shopping and entertainment options under a single roof increased. That is how modern
retailing that is organized retailing came into existance in India.
Soon retailing became the most attractive sector in India, which is expected to grow more
and more in near future. The pace at which Indian retail has grown has attracted many.
This booming situation is the result of changing demand pattern of the consumer which
has made available a large number of international brands in our country (Sinha and kar
2007). These have further been supported by various trade and industry indicators also.
Like escalating urbanization, easy credit accessibility, enhanced road and rail network,
rising savings which further results in investment in technology. Combinedly all these
focuses on providing globe shopping environment. Many factors are present in the Indian
scenario like its gigantic middle class population, unexploited retail sector are attracting
big global retail players to enter. As a result Indian retail is anticipated to grow by almost
25% every year. Retail industry of India is growing at a very fast rate and has
successfully marked its presence in the international retail scenario. Over the period as
stated earlier also there is an attitudinal shift of the Indian consumer .On the other hand
with the materialization of various different retail formats each and every dimension of
Retailing in India has been altered. Economic growth of India is going through a phase of
growth. And in this growth biggest contributor is customer preference towards retail
sector. Because of which corporate houses are refocusing its strategic perspective. Retail
sector in India is all set to use resources optimally in order to create core competence and
gain competitive advantage. Indian retail has been continuously contributing towards
employment generation and revenue generation. There is lots of scope of marketing
creativity in organized retailing, which have been successfully shown by many retailers.
Because of its lucrativeness sector is attracting many new entrant. In India, this sector is
progressively moving towards attaining its pinnacle. Customers have growing awareness
and brand consciousness. After witnessing boom in IT sector and biotechnology Indian
economy has seen a very lavish growth of organized retailing, which has emerged as one
of the most promising industries. This attracted various international players to come and
invest in the country. We have seen many large chains which have entered in the retail
sector of our country and have seen flying colors also. Now we can say in a nutshell that
retailing in our country has evolved in a very formal and organized way. This contributes
a major portion of countries GDP as well as contributes towards generation of more and
more employment opportunities. This as a result accelerates the overall growth of the
economic sector in our country. Because of the growth potential and the benefits given by
the organized retail it has been a very talked about term in the country and whole focus is
on it. Innovation and creativity are the key components of retail. These are the only two
forces which are helping the existing players to sustain the intensified competition.
Further it also helps to fight with the new entrants in the sector. On the other hand along
with the competition the customers are also demanding lots of innovation, because of the
exposure rate of customer.

As a result there is acceleration in the number of such formats are continuously

accelerating day by day. Which are listening carefully and then responding to the
customer requirements, who are more focused on an experience (Sinha and Kar, 2007,
Kotler, 2006).Customers are growing aware day by day as well as are becoming more
and more brand conscious. These are also few factors because of which retail outlets
which are established in metropolitan and semi- metropolitan regions are witnessing
noteworthy growth .( Jhamb and kiran 2010)The potential of this sector looks bright in
India. Because of many supporting features like favorable government policies and the
promising technologies which are facilitating operations. All these are attracting many
foreign retail players also to enter in this market and gain some advantage, (Dalwadi
2010).With about 14 million outlets Indian retail market is largest market which attracts
many players (Sinha and Uniyal, 2007). Retail sector of our country is majorly
dominated by small, independent, owner-managed shops. (Swar2007) Indian market
have been showing various favorable trends because of the over whelming response
which organized trade has got in India. Many demographic factors have become very
important drives in promoting retail. Namely increase in income level, more and more
population settling in urban areas, growing youth population. The population which
believes in spending rather than saving and enjoying the moment. Various international
players have set up successfully in Indian market; quite successfully and also have joined
hands with few Indian players also to have effect of localization (Gupta2007) says that a
proportionate change has taken place between socio economic status and retail in India.
As retailing includes concepts of service marketing in it all the 7 p’s plays a very
important role here also.(Aggarwal,2007) has been minutely analyzing the reasons for
growing popularity of organized retail in India as well wants to know the factors because
of which it has been adopted very readily. There are many positive effects which have
been generated by organized retail ample of employment opportunity, appreciation in the
value of real state, and overall boost in the disposable income of the population. As a
result we see various retail outlets very comfortably settling down in India. The whole
economy played a major task in entirely transforming the appearance of Indian retail
making it more and more attractive. Now most popular formats are departmental stores,
hypermarkets, supermarkets, specialty stores and malls. Which are very readily adopted
especially in metro cities. These economic changes have been the accelerating force for
organized retail. Currently in the country organized retail has been successful in
outshining traditional stores or kirana stores format which were very popular in India.
These new formats are very much customer oriented and believes in proper management
which is done for the distribution (Hino 2010). (Mishra (2008) there were many
opportunities which were knocking the way of organized retail. And all these
opportunities have been very smartly capitalized because of realizing and optimally
utilizing the strengths. Already mentioned are some of the factors which are prevalent
like accelerating youth population, national as well as international brand availability,
easy finance, rising retail finance, acceptability of retail formats are some to mention.
Because of the entire above trend which is listed there is a massive change in the life
style, this changed life style is also a very important indicator growth of the retail formats
in organized sector. This kind of atmosphere is prevalent in many countries but out of
them Indias scenario is found to be most attractive among all. Indian market has been
looked upon as one of the favorite destination for retail. Indian subcontinent is found to
be very attractive because of emergence of consuming class in the country. Which is the
result of employment generated which led to increase in the disposable income level.
Along with that now a day’s dual career is fondly accepted in India which further
enhances the living standard of citizens. It’s not like that in India only opportunities and
strengths are present, Indian retail formats simultaneously is facing various issues like
increasing cost because of rising cost of the real state. We can see a number of
improperly developed mall specials in small towns and cities. Retail formats here are also
facing various threats because of lack of well qualified work force. As well in our country
we are having underdeveloped supply chain mechanism, and last one to mention in the
sequence is taxation hurdles which are posted by government. (Shukla 2007 and Goyal
et al 2009) growth in retail is not equal means its not like that everything which is the
part of retail format is gaining popularity.

(Satish and Raju 2010) Few big private players of the country are contributing
substantially in the organized retail at times along with a foreign collaborator. (Halepete

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2008), Indian market has saturated now and it’s the high time retail players should think
beyond the boundaries of India. This is necessary now to stop and minimize the effect of
challenges faced by retailers in India.

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1.3 EMERGENCE OF ORGANIZED RETAIL SECTOR
Retail has got two aspects connected one is store retailing and other one is non-store
retailing. Departmental store, a multi brand outlet, offering a large assortment of products
are readily available at one place, making all efforts to meet all the requirements of all
different strata of the society. On the other hand if we talk about Non store retailing it
focuses on direct selling, direct marketing and automatic vending. Every economy is
concerned with the kind of effects any business has on it. Here also the main concern is
whether development or growth of retail is going to have positive impact on economy or
not. And if that impact is said to be a positive one in that case also its concern of the
economist to analyze that impact. Retail format in our country is generating various types
of employment at each and every level of the organization. This in return is able to
improve standard of living. This type of development is opening doors for various
investors and also dragging the attention of various entrepreneurs. Moreover if we talk
about the customer demands we found that after globalization because of the increased
exposure it is changing very frequently. And this type of retailing setup is very apt to
cater these varied demands of the customers. That is why retailing is considered as very
efficient for overall economic development.
Retail development also has a very positive impact on overall infra structure of the
economy. Retailing is able to improve various facilitates like of supply-chain which has
again contributed in the efficiency part. Also has provided market for various farmers it
has proved to be a destination where farmers are able to sell their produce. As well as
give opportunity for many local brands also to display their products. The Indian retailing
is much diversified. The successful settling up of Organized Retail cannot be compared
with penetration of retail in other countries. Success rate of retailing in various countries
is much more as in India. Under Organized retailing trading activities are done by the
retailer who has the license. Retailing includes various retail formats like hypermarkets
and supermarkets, and retail chains. Retailing and specifically organized sector is
expected to grow at a very rapid and consistent pace over the coming years. Since then
organized retail has been coming up with flying colors it has been displaying a constant
growth patterns. Growth is looking very impressive as about 35 – 40% of growth every

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year. Consistent growth pattern has emerged in this sector because of many reasons like
shifting lifestyle patterns, mounting incomes of the household, encouraging
demographics variables, and easy credit accessibility. Organized retailers are trying
innovative models and formats to lure the customers. Customers are seeking variety,
convenience and quality while shopping. Whether it is for grocery, clothes, food, music
or even books. To match the changing customers needs and demands, the retailer have
come out with various stores or retail formats such as convenience store, chain store,
franchise, departmental store, speciality store, super market, shopping centre,
hypermarket, discount store, factory outlet, kiosk and shopping malls (which have been
discussed in detail).
It is very important to understand the category of a product which is offered and which
comes under the title of organized retail. There are various categories which are trapped
under organized retail. Most important is Clothing, textiles and fashion accessories. This
particular category contributes as the largest contributor under organized retail. In the
Indian subcontinent the total rise seen under this is from 23% to 38%. This includes
apparels offered for all the categories Gender (Men & Women), Age (Kids, Infant). As
well as it offers products specific to various occasion such as Formal occasion and Casual
occasions. It caters to various other people and caters various categories of people like
Bridal, Sportswear, and Uniforms. Major contribution in this segment is also because of
changes in the demographics as well as in the economic and social environment of the
country. It has been mentioned earlier also that now a day’s more and more number of
dual career families, nuclear families are in existance which are there by increasing the
living standard as well as the disposable income with the individual households. Because
of all these changes in the economic environment of the country all these segments are
performing very well. There is a direct relation between the country’s economic growth
and growth in the demand pattern under organized retail. Malls are the main destination
for promoting such kind of culture in the environment, their footfalls of consumers is
very high as a result the exposure rate of the customer increases. This is how mall culture
of the country is promoting and facilitating the penetration of organized retail in our
country. These malls are also continuously attracting many international brands. Mostly

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these players adopt franchise as a strategy to enter the market. Names of few Indian
brands in the segment are Arvind Brands, ITC, Koutons, and Raymond.
Second category to be discussed is of Jewellery. Although Jewellery does not accounts
for a very major share of the Organized Retail market. But still increasing and penetrating
in the market at a very slow pace .Indian jewellery market comprises of gold jewellery
and diamonds. Out of which gold jewellery forms a very major portion of the market. But
on the other hand next type is also gaining popularity day by day, taste of people if also
moving towards studded jewellery. Trend in the market display fondness towards
“Family jeweler”. Although changes are coming at a very slow pace. Slowly branded
jewellery is also able to adjust comfortably in this type of market. Contribution of
watches is only 3%, in the sector. But have displayed highest penetration in the market.
This industry is heading towards a very attractive growth pattern over the year. Youth
population of the country when exposed with many international brands prefers this
category a lot. Over the period these specific luxurious and expensive watches has gain
popularity as status symbol. The trend line for these kind of expensive and exclusive
watches have been moving continuously upward. Many international brands are gaining
popularity and enjoying the status in marketing graph because of increased exposure and
increased disposable income of the customers. Not only international brands are making
efforts to match up the demand levels, Indian brands are also upgrading themselves and
offering similar kind of brand value to the customers.

Amongst top manufacturer of shoes India has got second position. Market of footwear
displays a very even growth pattern over the years. This segment has been substantially
contributing towards the organized retail and we see very high level of penetration. Under
organized retail segment good assortments of shoes are offered starting from sportswear,
semiformal/casual wear and formal wear. Which are further segmented on the basis of
various demographic attribute. Although the main preference and in demand are casual
shoes as well as sports shoes since all over the world customers have become too
cautious about health and sports related activities.
Health & Beauty Care Services have been transformed completely over last few decades.
It has expanded in full range of activities like beauty and health care services. Craze of all

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these activities has grown so much that not we see mushrooming of such beauty clinics as
well as health center all over the world. For this India is not at all an exception with youth
getting tremendous opportunity through reality shows to show their talent. Likewise
getting ample of opportunities to get in glamorous fields. And one more reality is that a
pinch of glamour has been added in almost every field. As a result a reasonable growth is
depicted in the particular segment. But still reality is that lot many saloons and beauty
parlor falls under unorganized sector.

Pharmaceuticals are also one such area which is dominated by unorganized sector. In
India we have the concept of neighborhood chemists. And these are very small outlets
owned by a family and usually continue as a family business. Although few organized
players have also entered in this segment to name a few Apollo Healthcare, Medicine
Shoppe, and Guardian Pharmacy. Here are various schemes which are adopted by these
Pharma firms to promote their product. Various factors are given importance like
ambience, availability, reliability and quality of drugs. Pharma is among those sectors
which will never witness a depression in near future also.

White goods segment has great potential but unfortunately this potential has not been
recognized nor been tapped very properly. This particular category includes products
such as refrigerators, washing machines and various electronic products. The growth as
well as penetration seen in this particular sector is comparatively very low if we compare
it with other countries. If we analyze the growth we found more growth in rural segment
as compared to the growth seen in urban area. Under this segment there are few products
which have got a very attractive growth rate, growth rate of all the products are not
similar. For instance the growth rate of various types of consumer durables is performing
at a very high growth rate. With the increasing income of the household various
researches have also been carried out to judge the consumption pattern. And to exploit
this particular opportunity many manufacturers are joining hands with
retailers/distributors. And are aiming at providing better, improved and efficient solutions
to the end-consumer. New formats are also settling in the country like multi-brand
showrooms.

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Mobile handset has now become a necessity for the young generation rather being a
luxury. Mobiles phones are required by each and every strata of the society now. This has
marked the growth and boom for this particular product category. It has also given a
space and equal opportunities to all the complimentary services, as a result service
provider, accessories, and repair service has also gained importance. Trend has been
showing a continuous upward growth pattern since 2005. Even the growth is multiplying,
as the number is continuously increasing day by day. It’s almost on the verge of touching
500 million by 2010.Growth which is witness in India is not only confined to urban areas
, similar growth patterns are displayed in rural segment as well. Looking to the growth in
this sector, it lured many players and they have successfully penetrated in the market.

Furnishings, Utensils, Furniture-Home & Office category is another one which gained
importance because of the changing life style and high standard of living. With more and
more exposure of people coupled with their high disposable income various products
gained importance. The manufacturers who were able to capture the opportunity are
Godrej Life space, Fab India, Home Town, and Style Spa & Welspun. With the
affordable population growing continuously economy also supported in the form of
making easy credit availability. Both of these factors led to a explosion in this sector.
Real estate is now fuelled with increasing demand. These increasing demand patterns are
triggering the demands for complimentary goods also like furniture. Various social
factors are also contributing substantially towards the growth.

Food & Grocery is one of the most important component of the concept where in the
focus is all facilities under one roof. It is a part of the total entertainment package which
is offered by malls, which are gaining massive popularity over the period. Under the
pattern of organized retailing it is the second largest contributor. And specially the share
of grocery. Major footfalls are due to this and that people get attracted towards the
displays and this leads to impulse buying. Now the players are playing with the strategies
adopted for supply chain. And through innovation are able to reduce the prices. This

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works as a motivating force for Indian customers who are very price sensitive. Although
wet and perishable category is still in the hands of unorganized sector.

Out-of-Home Food Services these type of services have excelled because of few peculiar
characteristics like quality, ambience and differentiated product offerings. All major
product lines are the result of fast life of people. As well as one of the key contributor is
changing lifestyles of people. Dual career families have led to success of various
restaurants and food joints in our country. Changing life style has made eating out as a
new option in recreation activity. As well as customers are curious as well as ready to try
all new types of cuisines. As a result ways are open for all types of national as well as
international cuisines. Many international food chains have opened up there foot joints by
adopting franchisee pattern. To name a few Pizza Hut, McDonald's have opened up their
outlets by offering franchisee. Although they have adopted localization strategy, which is
indeed their key of success. On the contrarily many health related issues are witnessed
because of this fast food culture.

Books, Music & Gifts sector have witnessed a lop sided growth. These categories are
blooming and growing in only urban sector. Rural sector is not witnessing any growth
sings or likability for this product category. Many brands are operating with a good
record in this segment. This segment is displaying maximum of creativity and innovative
option, various differentiating factors are applied. In this particular sector accessional
marketing has also gain importance. Players have been promoting occasions and days
like Father’s Day, Mother’s Day, Valentine’s Day and rose days etc.
These types of occasional marketing helps to built strong brand. Internet usage and
mobile phone penetration has been also contributing significantly towards the growth
graph. As a result we find entries of various e-retailers like Amazon further entering to
trigger the competitive rate.
There are various types of retail formats which are accepted in the country. These all
retail formats have successfully entered the scenario and are competing quite
successfully. Let’s now discuss about all these formats in a detailed manner. Starting with
the most popular format which happens to be the oldest also. Department store under this

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format retailer stores and stocks various assortments of all categories of products. This
merchandise is stocked after analyzing the local market and completely caters to the local
demand patterns. Totally caters to local needs and wants of people. Supermarkets this
format demands a very large area for display. Display of the merchandise plays a very
important role here because it’s a self service store. Where consumers prefer choosing
their merchandise themselves. A very wide range of food and household articles are
available. Hypermarkets are a perfect blend of above two. Speciality stores are the one
which is based on the notion of catering to a very small segment. They are involved in the
sale of single or very few merchandise. As the name itself suggest Convenience stores are
the once where the top priority is convenience of the customer. These stores are located at
accessible locations and do work with the concept of flexi timings. Kiosks are usually a
very small place where the trading takes place. Usually they are located at various
comfortable and easily accessible locations. These places are the premium place where
exposure of the customer is maximum. These places are those which are engaged in
selling the necessities and very fast moving perishable goods. Discount Store is a kind of
retail format where discounts are offered at a very regular rate. Retailer’s offers discount
on almost 70% of its merchandise on discounted rate.

Retail formats have although settled in India by post liberalization but they are able to
attract and maintain a significant customer base. What is required from the retailer is to
take due care while framing retail strategies. Demand of the hour is RETAIL MIX, which
is a combination of store design and display, customer service, communication mix
elements, pricing method or strategy, merchandise planning and assortments and
location.

In the global marketing scene the whole focus of retailing is on adoption of managerial
measures so as to satisfy customer needs and earn the long term customer loyalty. Main
reasons triggering the escalation of retailing in India are increase in the level of
financially viable, improvements in the standard of living, enlargement of population,
enhancement in the educational qualification of people and time cautious population. If
we specifically talk about the retail market we found a passive supply led approach, i.e.,
markets were assumed to exist and the retailer are required to provide an acceptable

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outlet to enable the consumer to make purchases in the initial stages of development
minimal branding and competitive advantage was obtained by creating efficiencies in
operational costs. The retailing industry in India has come up along the lines of the
economic progression of the society. Indian society consists of the urban woman today
who is highly educated professionally qualified and working that means with high
disposable income. Apart from being hard pressed for time stretching her to maintain the
right balance between home and work, she is also a part of the nuclear family household.
With the increase in such double income households and working women segment,
consumers are looking for a different life style. Such customers while shopping will
definitely pay attention on convenience of one stop shopping, as they are too concern for
time , seek more and more information, variety, quality products, hygiene, attractive
shopping ambience and good customer service. These categories of customer seek value
for money, for the goods purchased. These needs of the customers are taken care while
shopping at convenience stores, departmental stores, and super markets and so on. With
the concept of nuclear families gaining more and more acceptance in urban areas. The
customers are interested in shopping places which have the right mix of all kinds of
entertainment and recreational patterns. Shopping malls with their varied mix, distinct
identity and tenant mix are able to offer customers a great and complete recreation choice
on one platform. Today, the malls are becoming more organized in terms of categories,
formats, movies and food courts. Which have not only added convenience but also an
element of fun to the shopping. This kind of shopping where customer care initiatives,
special offers, events and promotion are taken care by retailers. These kinds of strategy
not only help in creating a differentiating factor but also provides different value
proposition to the customer.

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1.4 INTRODUCTION OF CRM

Organized retail in our country in spite of the fact that it has entered in 90’s has been
growing and expanding in a continuous way. Goods trading have been a part of our
marketing and selling environment, but today the scene is changing as like retail sector is
making a very significant contribution towards the economic development of the country.
The effect is not only restricted to the development but also its redefining the shopping
habits of Indians. As today’s market is buyers market not a seller market as a result
consumer attitude and buying behaviour is changing constantly. Which is further denying
taking customer for granted. On the other hand retailers are facing highly demanding,
educated and knowledgeable customers are demanding for a very rich assortments of
products and continuously demanding and compelling retailers to stock a huge product
range, offer attractive schemes for gaining loyal customer base. On the other hand if we
talk about the restrictive competitive forces retail sector is witnessing problems related
with high lead time, seasonal fluctuations, evolving customer taste and sizes which are
further intensifying the competition. Here retailers have felt need for adopting customer
relationship programmes. Retailers are continuously finding out the ways to have a better
understanding of changing taste and preferences of the customer and on the basis of this
understanding are framing the strategies to attract more and more customer base. That to
concentration of these strategies is on identifying loyal customer and retaining that loyal
customer base only. CRM can be better understood as a viewpoint, strategies,
programmes and systems which focus on identifying the loyal customer, and after this
identification recognizing and concentrating on that loyal customer base only.CRM is
totally focused on building a favorable and a profitable relationship with the customer.
Under CRM strategists are busy in charting down the programmes for building
relationship and which will further help to raise the profitability of the organization.CRM
can become a very effective system only by focusing on and having effective inventory
management, buying systems and managing the stores in such a way that more and more
number of customers are attracted and become a loyal customer of the retail outlet. Prime
and foremost objective of any CRM strategy is to develop a proper database of the loyal
customer and to frequently patronize retail outlets. Buying process has undergone

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complete transformation over the period as the marketing environment is witnessing a
complete transformation because of increasing customer expectation along with the
aggressive participation of the customer in the buying process. Not only Indian retailers
but international retailers are focused on finding the ways to lure the customer for
sustaining profitably in this competitive environment. Main focus of CRM is to build
sustainable affiliation by high contact with the customer and maintaining apt services and
relation with them Retailers are striving to continue long term connection with the
clientele and in their struggle CRM adoption is helping them a lot by easing the
process.CRM efforts can be measured also by working out customer acquiring cost and
conversion rate of customers in loyal customers. All the marketers have agreed that
acquiring customers is a very expensive, which is forcing the retailers to adopt a strategy
which helps them to attract retained customer. Customers are like life blood of every
organization. Sheer existance of the organization its survival its success all depends on
the type of customer organization is having. Every organization wants to attain the stage
of customer satisfaction. And now a day’s organizations are focused on maintaining good
affiliation with the clientele. Relationship is tried to be maintained with those clientele
who are the loyal patrons for the organization. That means who have displayed repeat
purchases with the organization. This invented the very concept of Customer
Relationship Management. Whole focus of this concept is to maintain a sustainable and
fruitful association with them. Basically wants to inculcate the feeling that customers are
very important for the organization. And hence they want to make and maintain lifetime
relationship with them. It involves all steps right from creating, maintaining and
enhancing the relationship. So as to ripe all the benefits of a value based relationship.
This concept is totally focused on developing a proper understanding with the customers.
Over the period CRM strategy has gain popularity and acceptance in every type of
organization. (Christopher Bull 2003) (Drucker 1954) long held that the sole rationale
of business is to generate and keep customers. This business philosophy is
operationalized today through a firm’s strategy of being associated with them. CRM
includes mixture of all marketing related activities which are focused on maintaining
customer related complete data. And then using all these information related to their
perception and habits in terms of purchasing practices. CRM majorly comprises of

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adopting technology for enhancing and keeping customer record upto mark. So that these
information’s can be utilized wisely as and when required. Documentation of proper
customer records when the focus of the organization is on getting associated with the
customer becomes mandatory. CRM believes in analyzing the past behaviors and
demographic characteristics of customers in detail and than creating an offer which will
lure them. It deeply analyzes and provides appropriate feedback related to the buying
patterns of the customers who have been the loyal customers or the organization. And
this is how focus of the organization shifts to the loyal customer base. Adaptability of
CRM practices as a tool is able to enhance the performance of marketing mix, and is
helping the organization to gain a competitive edge .In CRM role of employees also is
very important since they are the one who will b interacting with the customers so they
need o be very impressive. As a result too much focus has been shifted to the internal
marketing concept where organizations value the employees. A motivated employee will
always lead to a very fruitful customer feedback. This kind of tools becomes very
essential for the survival in this intensified competitive world.CRM as a result has got op
most priority in corporate agendas also. Various researches carried our on consumer
behaviour also conclude on the same results that CRM enhances customer understanding.
It is always recommended to the organizations to be understanding the behavioral and
reaction pattern of the customers. This kind of strategic adoption further gives space to
innovation and creativity. It comes under the jurisdiction of top management, where
through technology customer data base is maintained and used accordingly. This strategy
can be adopted to develop a better understanding of customers. So as to move parallel
with customer prospect. There are various benefits which are derived by retailers like it
improves customer retention and loyalty. If the customer is engaged for longer duration
more and more enhancement in the value proposition will be witnessed.CRM focuses and
facilitates steady flow of customer repeat purchase. CRM can further help in reducing the
cost of sales activities as retail outlets have much, more focused responsive and active
customers. Philip Kotler This type of promotion is the course of constructing extended
trusting, wins win relationships with customers, distributors, dealers and suppliers. Over
the period of time relationship marketing concept have helped to deliver high quality,
efficient services and fair prices. Retail revolution is the appropriate term which can be

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given to the scenario which is witnessed in India and in many other B grade cities of the
nation. In India Shoppers Stop was the first retail chain to enter the market that was 12
years ago. Although that time in retail it was more of poor quality of retail estate to messy
supply chain to suspicious customers. But over the period by properly concentrating on
the needs and demand of customers slowly retailers have successfully accommodated
themselves in the competitive scenario. Concept of CRM was not at all accompanied by
organized retail in India it’s quite old. This practice of maintaining relationship with the
customer was existing at the time when we had kirana shops or in marketing language
what we call mom and pop stores. There was complete knowingness of the customer the
shopkeeper didn’t only knew the name of the customer but also his preferred brands. This
friendly interaction has helped them a lot to survive, the concept of this relationship
maintenance have further moved in a much refined manner. This is what is exactly
followed by retailers of today. If the retailer wants to sustain in this competitive
environment they have to have a very sensitive ear towards the customer needs, demands,
perception and attitude. In fact a very proper understanding of customer lifestyle, buying
behaviour, buying pattern along with lifestyle pattern and media habits is required.
Ultimately all these type of analysis are one with which retailers will be very comfortable
to adjust with the ever changing customer attitudes. Significant changes which are
evolving in the customer which are very important to understand from the side of the
retailer for sustaining. There are few changes in the overall environment of the economy
which are bringing changes in the customer. These changes are price sensitive attitude of
the customer, demand of customer for more value products. With media penetration
everywhere customers are more and more educated as well as aware. Now a days we
witness self assured customers who are having greater accessibility to information on
products through home shopping channels, infomercials and advertising campaigns.
Customer is also changing we have more sophisticated customer who have accessibility
to additional information and more and more concern for the value. This means that
retailers have to adopt the strategy of customization; retailers have to further work at
customizing their services and develop relationship with the customer. For developing a
very effective customer relationship a step by step procedure is required that involves
identification of the customers, then develop a proper understanding of them and making

30
a very regular efforts to be in touch with them. Retail outlets have to make efforts to
ensure that the customer gets all that they wanted from the outlets. Also retailers should
continuously strive to ensure that the customer is getting what has been promised. To ripe
the benefits of CRM strategies which are longer stay of the customer, higher profitable
customer and reduced cost of sales effort a proper and effective emphasis on the strategy
is required. This business philosophy is operationalized today through a firm’s strategy of
customer relationship management (CRM). Advances in information technology and the
willingness of industry to adopt a customer-centric philosophy allow firms to focus on
dealing with customers individually.

Advances in information technology and the willingness of industry to adopt a customer-

centric philosophy allow firms to focus on dealing with customers individually (Kim,
Choi, Qualls, Park 2004) CRM is not only a concept which was adopted by the
organization to enhance customer satisfaction. It was rather adopted as an extension of
customer satisfaction. But now has been very readily adopted as a part of corporate
strategy. Over the period organizations have witness various factors which have been
influencing consumer purchase decision. Organizations have been working hard on
adoption of latest tool and techniques. These all have been continuously analyzed and
enhanced for generation of better results. Adoption of better tools and techniques is an
integral part of CRM strategy. CRM applications have generated very positive results
overall for all types of organization. But the results for service organization and retailing
outlets are substantial and very encouraging. Organizations have realized that gaining of
new customer is a very tedious as well as expensive process. A a result concentration of
all organizations have moved to loyal customers. Whole efforts have been now
concentrating on maintaining relationships with the old customer. This will further help
to enhance organizations image, as customer will feel very important for the organization.
And since the communication among these two will start which will further provide a
platform to convey each other grievances. Understanding about needs and requirements
will be developed in a better way. Over the period CRM has emerged as a core marketing
activity. This has been developed as a very effective tool to survive in this intensified
competitive world. As a result smart organizations are focusing more on maintaining

31
relationships with the existing customers so as to increase overall sales performance of
the organization (Jain and bagdare2011).

Importance of building relationship has been felt by almost all types of organizations. In
case of service organization they have started moving towards the concept of relationship
exchange rather than transactional exchange. Main agenda of accepting these relationship
based strategy is to maintain profitable relationships with professional groups as well as
with customers, these types of relationships are value based (Jain at al., 2005).A need
has been felt for developing mutually beneficial relationships and likewise various
researches have been done to find various dimensions of these types of
relationship.(Morgan and Hunt 1994) and (Groonroos 1994) in their study have talked
about the importance of relationship based marketing efforts. According to them it
involves almost all types of activities which are customer oriented. They propagated that
these type of relationships are for mutual benefits of both the parties. Further it is
advisable for organizations to nurture and make this bond stronger. By this organizations
will be capable enough to provide life time value. (Fox and Stead 2001) believes that
CRM is practiced with an aim to develop long-term mutually valuable relationships with
the customer. (Levitt 1986) in his research talked about the concept of product and said
that today’s customer is not just interested in the core product. Rather he wasn’t to move
to the next layer i.e. more concerned about the augmented product. He also said that now
customer’s views shopping as an experience. Many researchers in their work have found
that there is a straight connection between the CRM spending and client satisfaction
(Srinivasan and Moorman, 2005). Although satisfaction of the customers also depends
on repeat purchase and a proper customer grievance handling system (Bolton and
Forenell, 1992) and shareholder value (Anderson et al., 2005). Today marketers are
witnessing intensified or cut throat competition as a result they are forced to be customer
focused. Various researches have concluded that retention of customer is less expensive.
And retained customer of an organization can provide more competitive advantage. As
the cost associated with maintenance is less as compared to gaining new
customers.(Rosenberg and Czepiel, 1984) This is even able to provide free mouth
publicity. Indian terrain is right now witnessing the most taxing and electrifying changes.

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There is development of various consumption patterns with the changes in the life style.
Beliefs of people are changing. The beliefs of Indian youth have shifted to materialism,
more and more focus is on consumption. Multicultural is booming in the country further
intensifying the urge to consume more and more. Indian customer is displaying the traits
related to their spending which were never ever heard in this country. With more and
more exposure and movement of people changes in the economy. This transformation in
the cultural environment of the country has given space to many other changes, which in
return has provided massive opportunity for various investors. This Change provides both
a humongous challenge because of which retailing has been adopted as an integral part of
our lives. Though trading of goods has been in existence since the older days, it is only in
the recent past that the buying and selling of goods have become more dominated
activity. In fact, today retailing is evolving into a global, high tech business.CRM
includes various methods as well as methodologies, which are readily adopted by the
organizations for properly maintaining associations with the reliable clients. In this
system of implementing CRM strategies in the initial stage total information about the
customer is collected, and after proper collection of the information it is analyzed. The
output which is received after properly analyzing the data is kept confidential with the
organization. And it acts as an input while framing various strategies in the organization.
Relationship triangle which was proposed under service marketing highlights the
importance of all types of relationship in the organization. But still holds that customer
association is most important to survive profitably. And this relationship further enhances
the profitability of the retail business by translating the loyalty because of the reduced
price. As well as full customer information allows and further helps companies to target
profitable customers. On the other hand the unsurprising buying habit of customers helps
organization to reduce on the holding cost. Also helps to prevent the loss caused due to
spoilage. Also it lower down on promotion expenses and assist to stretch products life
cycle.CRM notion has been so talked about by everyone and related with every sector
that every size of organization wants to apply it. Especially in case of retailing even small
retailers are stressing so much on CRM that all others are forced to implement it. Also
with the positive outcomes there is an enhancement in the relationships and more and
more players are encouraged to adopt.

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1.5 CRM AND ORGANIZED RETAIL SECTOR
As discussed earlier we are able to understand the importance of CRM now let us talk
about its applicability in today’s retail world. Although customers have develop
preference for shopping at retail outlet, simultaneously are cautious about selection of
these outlets. Many factors are considered while working on the options. Each and every
customer has got their own individual criteria for selecting outlet of their choice. Some
customer gives importance to the assortments of the product, few feels services provided
should be given due importance. Some even consider various price options which are
offered by various retailers. Customers have a habit of comparing all these parameters
with unorganized sector also. In a nutshell we can say customer evaluates each and every
shopping option, and which so ever is found attractive by them they choose to shop from
there. All these factors have been properly identified and evaluated by retailers. And they
also try to prioritize these factors in the same order in which they are perceived by the
customers. Excellence over these factors can be achieved by use of technology. All the
customer information is supposed to be collected properly, not only that they need to be
scrutinized properly. This information should be able to derive some conclusions about
customer’s choice and preference, over the period. For the above mentioned purpose a
properly found system of storing and evaluating customer information is required.
And this relationship further enhances the profitability of the retail business by translating
the loyalty because of the reduced price. As well as full customer information allows and
further helps companies to target profitable customers.
CRM has been very rightly perceives as a survival theory for all the sectors where
competition is growing. Looking into the success of retail players the sector is further
attracting more and more investors to come and exploit the opportunities underlying.
Through effective implementation of these strategies which is rightly coupled by the
technological intervention success is obvious. Technology supports the system for
maintaining a proper data base of the customer related information. Whenever there
develops a kind of association between two parties both are benefited by the same.

34
Likewise in the case of CRM also customers are benefited as the organization is
designing the product according to the complete requirements of the customer. And since
organizations are able to keep a proper track of the customer information. The
information is even related to the likings and demands of the customer, which is
moreover updated from time to time. This kind of behaviour is able to inculcate a deep
rooted feeling of care in the customer. This is ripped by the organizations in the long run.
Retailers are suggested to take intense care related with the implementation of this
relationship based procedures. Without effective use of the technology it looks
impossible to maintain an appropriate database and extraction of information will even
become impossible. Whenever a data base is maintained most important becomes the
extraction of the useful information from the database. Unsuccessful extraction leads to
wastage of time as well as ruins all the efforts and pain associated with maintaining of the
database. Arrangement of the needed information is part of the system which is created
under CRM technologies. And ultimately this system is only going to make the
implementation of CRM successful. Technology also holds this responsibility of creating
a proper system. In a nutshell we can say that it’s the life blood of the CRM. We cant
even think of an effective CRM implementation without appropriate technology
adoption.

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1.6 EXECUTIONAL CRM

Competitive scenario of the country with special reference to India has been discussed in
detail. Sustaining the competition is very important for all retail outlets and sooner is
better they have realized the significance of management required for maintaining
relationship. It focuses on creating offers which are able to attract more and more
customers. These offers are created on a very solid background. This is totally based on
analysis of customers buying behavioral pattern. As well as takes into consideration the
demographic characteristics of the customer with an idea to have a better understanding
of customer. Main attention of CRM technologies lies in collection of the related
information from the segmented customer base. After the collection of information about
customers which almost covers every dimension about the customer buying is studied
well. This is how now organizations are becoming more and more committed towards
delivering value to the customer as well as increases the overall profitability of the
customer.

Retail market is evolving & becoming more and more competitive day by day. Need of
the hour for all retailers is to focus on branding and create an image which is very
positive in the mind of the customer. Retailers are very much focused on increasing their
return on promotion venture and maximizing length of customer worth. Whole focus of
the marketer and retailer is to keep client content. Customer satisfaction means that
customer desires, requirements and outlook are matched properly. For a proper
management of all these proper streamlined process is required. This is giving full
freedom of communication with customers from both the perspective. Communication
process have always be said as a two way process where there is enough of scope by both
the parties involved to put ahead there points. If the organization is committed to follow
on customer oriented approaches it becomes indispensible to develop an understanding
about customer choices and preferences. Under this where the whole focus is on
developing an association with the customer this becomes more and more important. If
implemented properly it will definitely come up as a weapon which will offer immense

36
edge to survive in the competition. CRM has further triggered the mounting of programs
which further focuses on loyalty. Data collected should be used properly otherwise
nothing can be derived out of it. With this entrepreneurs can base their strategies on their
loyal customers which will further enhance the value given to clientale.

Organized Retail is preferred by most of the customers because of more understanding

towards its regular customer’s requirements. Retailing is totally customer driven and are
further focused to maintain this level. As a result satisfaction of the customers of
organized retail outlets is rising day by day. Many promotional campaigns which are
administered by sales team have been initiated and producing positive results.
CRM concentrates on proper documentation of data, so that it furnishes complete
descriptive analysis of customers. Relationship based strategic management is totally
committed on acquiring, retaining and partnering with target audience. Whereas the main
focus point is providing customer with life time value. It is basically a perfect blend of
various activities adopted in the organization with an objective of delivering customer
value. CRM maintains proper record of the customer so that proper understanding about
their needs and wants are clear to the marketer.CRM also focuses on updating this
information from time to time so that the information doesn’t become outdated.
Information collected will be very fruitful and will provide a judicious approach to all the
strategies then designed.
Customer loyalty is preceded by partnerships, empowerment with customers and
personalization. Like this an effective execution of CRM strategy leads to a very satisfied
and loyal customer. Success mantra for a CRM strategy is concentration on only potential
and satisfied customers rather than relying on a large pool of non-loyal customers. CRM
can be rightly describes as a marketing philosophy of enabling coordination and
cooperation between all the departments of the organization. Also it talks about complete
coordination between customers and business associates. As well as with the various
teams of the organizations like front office and back office practice.
Whole focus of CRM strategy is on loyal customers which is again backed by the same
logic that gaining customers is four times expensive than retaining customers
Also CRM make efforts to make the customer associations profitable; to form and
safeguard lasting and lucrative associations with patrons. In a nutshell we can say CRM

37
is all about collecting customer information and preserving this information for
maintaining relationship with the customer.CRM plays a crucial role in improving the
relationship with the customers. Out of many benefits derived out of CRM
implementation and effective execution helps in establishment of an in depth
understanding about the customer. It further leads to improvements in delivery system to
make possible sustained customer contentment which takes the organization towards
loyal customers. At times when the strategy is already implemented and over the time it
becomes obsolete CRM helps to refocus on customers again. This further helps the
organization to excel by developing competitive edge & excellence. Hence we can say
that CRM helps retailers and marketers to rediscover customers in the long run. Lastly
the most important component of CRM strategy is that it employs technology for getting
information and feedbacks from the customers.
Customers like to be remembered on their special days such as marriages, Birthday,
Anniversaries and festivals. By adapting such practices retailers are able to inculcate
feeling of concern for customers. Focus of every retailer is on training their employees in
such a way that they are able to handle the grievances promptly. To achieve this sales
force need to furnish themselves with complete details regarding stock and its
assortments. Technology further sharpens the edge to be achieved by marketing
programs. Orientation should be on providing blunder less services. Descriptive
explanations regarding all schemes should be furnished to the customers.

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1.7 RETAILING IN INDORE
Indore is a II tier city of central India, which is often referred an mini Mumbai because of
its characteristics in terms of business. There are top brands national as well as
international available with the retail stores. Retail outlet also exists in different segments
like food & watch, footwear Clothing and Apparels lifestyle etc. This city has all
characteristics present as an ultimate test city with the population who is too fond of
trying new options. Irrespective of the fact that the new option is available for shopping
or for related to food. In all B grade towns outlet are more deliberate and focused on
almost all array of customers, having different demographic characteristics. In almost all
the retail outlets of Indore CRM practices are seen. Same practice of CRM of collecting
important information regarding customers is practiced in this city also. Retailers are very
enthusiastic in tracking purchaser benefit, requirements, buying behavior, their way of
life, lifestyle, like, dislike, fondness. Timely analysis regarding the services provided also
helps to serve better. Feedbacks which are taken from the patrons further helps to
understand the negatives and the gaps which are there. Since service delivery is a process
which involves human element certain gaps can occur in the process, which can become
threat for the organizations in the near future. Lots of efforts are made towards proper
training of the employees for improving their behavioral aspect. Focus is on having very
polite and friendly employees so that customer interaction will be smooth. Under CRM
strategy development of the interpersonal skills of employees is also given due
importance. Customer touch points are considered as a result retailers keep in touch with
customers. This can be maintained by trying to be in connection with the customer by any
mode. Now a day’s even the organizations are into arrangement of an event followed by a
festival for customers. By adopting these customer feel connected with the organization
which is very important. Retailers of city are also focused on understanding ever
changing customer expectations and demands. And a proper system of feedback is also
established for continuous improvement. Regular and continuous promotional programs
are adopted to communicate with the customers related to new product information,

39
various offers’, details of new stock through. Technological adoption will further enhance
the process of developing knowingness about the customer’s likings and disliking.
Membership cards facilities are also provided to the customer for encouraging more
repeat purchases. As well as making customers aware about the bulk buying and bulk
buying discounts. Regular focus of the retailers is on maintaining well-organized and
resourceful supply chain management, accessibility of product all time, detailed
description of all these assortments. So that better retail services are delivered so that
more and more customers are attracted and retained. Retailers at Indore consider CRM as
a very important aspect of retail outlets for developing knowingness about customer. This
further includes developing a full understanding regarding each and every aspect related
to customer, with an objective of attaining their satisfaction. Indore is accurately referred
as the financial capital of Madhya Pradesh; it has notable contribution
in trading, finance and distribution . It has largest economy of the central India. It is
rightly located at the crossroads of western and central India, and hence has got good
connectivity with other parts of the country. Because of this factor it has been the hub
of trade and commerce, for western parts of the country also. City holds a very prominent
position in trade and commerce, as well as has many manufacturing units of cotton
textiles, iron and steel, chemicals, and machinery. Although in the declining phase still
textile industry is the one of the largest in India. Many labour intensive industries which
deals with handlooms, other categories which belongs to the segment of labour intensive
have also successfully survived in this region over the period. Indore has always excelled
in all the activities related with textile industry, which further includes all array of dyeing,
printing, designing etc. Infact for many years the city have been one of the prime dealer
for many licensed brands. Apart from these industries city has been recognized as a prime
exporter for many industrial products. Although the major contribution remains with the
textile but other sectors have also witnessed there boom in this particular city. All these
have been combinedly responsible for increasing the per capita contribution of the city. A
rise in employment level, leads to increase in income level which further leads to a much
better standard of living. All these sequential progress have been witnessed in this city.
The economy of the city is expanding in all directions giving space for various industries
like IT and retail. One of the busiest cities of Madhya Pradesh, Indore represents the

40
financial spirit of the state. The city is home to the headquarters of the Madhya Pradesh
Stock Exchange and also serves as the regional headquarters for numerous multinational
corporations. This further brings in the higher salaried people in the city. These groups of
highly educated and professionally qualified people change the whole direction of
marketing. With the presence of various good private and public banks level of
capital investments has been raised in the city.
Retailers at Indore want to grasp the customer relationship approach for enhancing the
value derived by the customer. Basic concentration of the retailers should be on having
complete documentation related to customers. And as when and where required using all
the information collected properly. Customer information includes their feedback forms,
Referral forms, purchase details of every loyal customer.. Retailers are continuously
analyzing and finding newer ways of build good relationship with customer. Under this
customers are provided with coupons, membership cards and festival offers along with after
sales services for maintaining customer loyalty. Also retailers make use of Guarantee
& response cards, accepts credit /debit cards. CRM retail software is used in organized
retail outlets to find better ways to bring back customers, identifying their preference. So
that better retail services are offered to more customers.

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