LEVEL OF CUSTOMER SATISFACTION AT SUBHIKSHA

In partial fulfillment of requirement for 2nd semester of PGDM

Under the supervision of: Dr.RAJIVE KOTHARI

Submitted by:BHOMA RAM (PGDM-2nd Sem.)

-: Submitted to:-

Centurion Institute of Professional Studies

Campus: Sector 18, Kumbha marg, near medical university, Pratap nagar, Sanganer, Jaipur (Raj.) (September-2008)

ACKNOWLEDGEMENT
It is always acknowledged so precious a debt as that of learning. It is the only debt that is difficult to reply through gratitude. It is indeed a great opportunity for me to pen down a few lines about people to whom my acknowledgement is due. It is my deepest sense of gratitude that I wish place on record my sincere thanks to RAM NIWASH for providing me this opportunity to make this project. I would like to thanks my faculty members at Centurion Institute of Professional Studies who gave me the useful tips and opened a whole New World of Knowledge for me. I also want to thank my friends who extended their cooperation and were patient at all stages of our work. Especially to Anand Kumawat, Anuj Jain and Vikash Kumar Swami. Last but not the least I would like to thanks all those who could not find a separate name but has help me directly or indirectly. BHOMA RAM PGDM- 2nd sem. Batch-(2007-09)

EXECUTIVE SUMMARY

This project has been made on the research problem Level of Customer Satisfaction at Subhiksha. This is a descriptive research study because there is a need to identify level of customer satisfaction over Price, products and customer service etc. through customer survey. For sampling I use probability sampling technique in which I use Area sampling method which include questionnaire and this questionnaire revels information about customer satisfaction level on price, product and customer service etc. Interrogation through personal interview has been used as a data collection technique and questionnaire is data collection instrument, which is closeended & open ended. After getting these filled from respondents I made some pie charts. Then the pie charts were analyzed to reach the conclusions. After analyzing the satisfaction level of customer on price, products and customer service it has come to know that customers are demanding higher product quality, fast delivery, better service and lower prices.

The most important thing which is learned from this project is how to conduct a research on a particular problem by using different research methodology techniques. It helped a lot to apply theoretical knowledge in to the practical life. This project also helped in improving the communication skills through interacting with the people in the market. BHOMA RAM

CONTENTS
S.no. 1 2.
3.

Chapters Chapter 1 Introduction Chapter 2 Industry profile Chapter 3 Company profile Chapter 4 Research Methodology Chapter 5 Interpretation of Result

Page No. 6-7 8-15 16-23

4.

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5.

25-31

6. Chapter 6 Conclusions 7. 8. 9. Chapter 7 Recommendations Annexure I (Questionnaire) Bibliography

32-33

34-36 37-38 39

INTRODUCTION
This project has been made on the research problem Level of Customer Satisfaction at Subhiksha. The objectives of research are to identify level of customer satisfaction over Price, products and customer service at Subhiksha stores and accordingly deliver solution to increase that.

Why and How to Measure Customer Satisfaction?

Most companies say they believe in great customer service, but few set up a system to insure that they provide it. Delivering great customer service takes both understanding what your customers want and a way to see that they receive it.

Measuring Customer Satisfaction:There are several ways to gather input from customers. The simplest way to find out how customers feel and what they want is to ask them. If you have only 20 customers, you can talk to each one personally. The advantage of this approach is that you'll get a personal "feel" for each customer. The disadvantage is that you'll gather different information from each customer depending on how the conversation goes.

Here are a few of the possible dimensions we could measure:

quality of service speed of service pricing complaints or problems trust in your employees the closeness of the relationship with contacts in your firm types of other services needed your positioning in clients' minds

Role or importance of customer survey

Today's competitive marketplace requires every organization to listen to the voice of its customers. A customer service survey can provide management with valuable input on both short-term and long-term decisionmaking. It can offer critical operational and strategic advantages over the competition. Here is a customer satisfaction survey on level of customer satisfaction at subhiksha stores which includes some information like satisfaction on price, goods and customer service. It measures level of subhiksham card among customers and tells us awareness about loyalty card and other services

2. INDUSTRY PROFILE

RETAILING:-

Distribution of consumer products begins with the producers and ends at the ultimate consumer. Between the producer and the consumer there is middleman-the retailer, who links the producer and the ultimate consumers. Retailing is defined as a conclusive set of activities of steps used to sell a product or a service to consumers for their personal of family use. The word retail is derived from the French word retailer meaning to cut a price off or to break bulk. A Retailer is a person, agent, agency, company or organization, which is instrumental in reaching the goods, merchandise, or services to the ultimate consumers.
CHARACTERISTICS OF RETAILING: There is direct end -user interaction. It is only point in the value chain to provide a platform for

promotions.
Sales at the retail level are generally in the smaller unit sizes. Location is a critical factor.

 Services are as important as core products.

FUNCTIONS OF RETAILING: Sorting. Breaking bulk Holding stock Additional services Channel of communication. Transport & Advertising functions.

CLASSIFICATION OF RETAIL UNITS ON THE FOLLOWING BASIS: Nature of ownership. Operational structures. Length and Depth of Merchandise. Nature of service. Type of pricing policy. Type of Retail location. Method of consumer interaction. Size

TYPES OF RETAILING:The first is the market, a physical location where buyers and sellers converge. Usually this is done in town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or Store Trading. Some shops use counterservice, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. Jewellery) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 20th century. A third form of retail is Virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as Amazon.

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RETAILING FORMATS: Malls: The largest form of organized retailing today Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq. ft. and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, India bulls mega Mart, Pantaloon, Wall mart etc. Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods.

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 Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries etc. Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!. Hyper marts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales. Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. MBOs :

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Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

Present Scenario of Indian Retail Industry:The revolution in retailing industry has brought many changes and also opened door for many Indian as well as foreign players. In a market like India there is a constant clash between challenges and opportunities but chances favour those companies that are trying to establish themselves. So to sustain in a market like India companies have to bring innovative solutions. Indian market has potential to accommodate many retail players, because still a small proportion of the pie is organized. Retailing is still in its infancy in India. In the name of retailing, the unorganised retailing has dominated the Indian landscape so far. According to an estimate the unorganized retail sector has 97% presence whereas the organized accounts for merely 3%. Industry has already predicted a trillion dollar market in retail sector in India by 2010. However, the retail industry in India is undergoing a major shake-up as the country is witnessing a retail revolution. The old traditional formats are slowly changing into more complex and bigger formats. Malls and mega malls are coming up in almost all the places be it

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metros or the smaller cities, across the length and breadth of the country. Both MNCs and Indian firms want to get their share of this burgeoning pie. Notable in Indian firms are Pantaloons Retail & Big Bazaar, Trent's Westside, Shopper's stop, Reliance and Subhiksha,
Wills Lifestyle stores, Caf Coffee Day, which is present in India in

different retail formats. Wal-Mart stores have just started operations in India.
Some leading retail coffee chains of the world like Starbucks,

Barnies are planning to expand in a major way in India.

KEY CHALLENGES OF RETAIL INDUSTRY:-

LOCATION: "Right Place, Right choice". Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: - Investigate alternative trading areas. -Determine the type of desirable store location - Evaluate alternative specific store sites

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MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. TARGET AUDIENCE: "Consumer the prime mover" "Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom. SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried

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out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India.

3. COMPANY PROFILE

SUBHIKSHA TRADING SERVICES LTD. An introduction

HISTORY OF THE COMPANY-

Subhiksha is India's largest supermarket, pharmacy and telecom chain. Started in 1997 as a single store entity in South Chennai, it is now present nationally with 1400 outlets and spread across more than 90 cities. ICICI Venture Capital has a 24% stake in Subhiksha. Derived from the Sanskrit word, Subhiksham or "giver of all good things in life", Subhiksha was founded by Mr. R. Subramanian, an IIT-Chennai & IIM-A alumni. His vision to deliver consistently better value to Indian consumers, has guided Subhiksha to deliver savings to all consumers on

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each and every item that they need in their daily lives, 365 days a year, without any compromise on quality of goods purchased. Subhiksha now has the pan Indian presence with stores across Delhi, UP, Punjab, Haryana, Gujarat, Maharashtra, AP, Karnataka and TN. Today, it is a multi-locational, professionally managed and vibrant organization that is poised to change the lives of millions of Indians, faster than ever before! THE VISION:To make Subhiksha, the dominant supermarket player built on trust by world-class people and service. This it hopes to achieve by:
Understanding the needs of customers and offering them superior

products and service

Leveraging technology to service customers quickly, efficiently and

conveniently
Developing and implementing superior management and investment

strategies to offer a good satisfaction to their customers.

Providing an enabling environment to foster growth and learning for

their employees
And above all, building transparency in all their dealings.

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of the people and the way they work.

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The company believes that they are on the threshold of an exciting new opportunity, where they can play a significant role in redefining and reshaping the sector.

THE COMPANY:Subhiksha the Chennai based, no frills, discount retail chain, which recently hit the 1400-stores mark, has catapulted itself into one of the countrys largest supermarket chains, with over one million sq. ft. of retail space, spread across five states of the country. The goal of Subhiksha to becoming Indias favorite neighborhood store is now well on its way. We want to be able to provide customers from all segments of society, in all parts of the country, with a viable smart shopping option, added Subramanian. Unlike Big Bazaar, its discount, food and grocery, retail counterparts, Subhiksha believes in setting up non-air conditioned small neighborhood stores (near the community) measuring around 2,000 sq. ft. in retail space. As such, while Subhiksha competes with big store chains on regular discounts, it competes with traditional father and son kirana stores on close proximity to its customers.

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SUBHIKSHA PROMISE:Lowest Prices & Great Savings Everyday!

Subhiksha offers all goods at sharply discounted prices so that consumers can genuinely save in every transaction. Unlike other stores, the low prices at Subhiksha are not limited to a few goods or to a few specific days. Customers can get the same discounted prices on all items, on all days and irrespective of whether they make a small or a big purchase. In fact, the

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discounts and customer savings at Subhiksha are 4-5 times that offered by other small and big retailers.

PROVIDES WIDE SELECTION OF GOODS:Subhiksha offers consumers a wide selection to choose from:

Supermarket

Quality groceries, packaged foods, cosmetics and toiletries, household provisions etc., sourced from the best brands in India - all available at the lowest prices.

Fruits and vegetables

A large range of fresh fruits and vegetables is sourced directly from farms on city outskirts and made available to consumers at very reasonable prices. Consumers get the freshest produce at the best prices.

Pharmacy

All medicines are made available to consumers at a flat 10% discount. This is especially helpful for elderly consumers and those who are on continuous medication.

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Telecom

Subhiksha is now India's largest mobile retailer and offers handsets, accessories and charge cards from all leading brands including Nokia, Motorola, Sony Ericsson, LG, Samsung, etc., at the lowest prices. You do not just get genuine company warranty but also amazing exchange offers on old phones, spot finance offers and much more. Guaranteed Delivery Subhiksha guarantees to deliver the exact product you have selected. In case you have received a different product, or if the product was damaged in transit, please contact us within the stipulated time period and we will ensure that we replace it or refund you for it. Please note, we will deliver goods within the committed time period, but there could be occasional delays. We will contact you, in case deliveries are expected to get delayed. Simple Return Policy If you have purchased something at Subhiksha and are not satisfied with its quality, then you can return the same to us; no questions asked, as long as it is in its original packaging and accompanied by its invoice. We will even make the return process simple for you - just contact our call centre number or nearest Subhiksha outlet from where the stock was delivered to you and we'll arrange to pick up the product from your home. Alternately, you could drop it off at the nearest Subhiksha store. Real Customer Support For any information that a customer require he could contact our call centre at 60607777.

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SUBHIKSHA IN PRESENT RETAIL INDUSTRY SCENARIO:At a time when big retailers like Reliance Retail and others are facing stiff resistance for having hit the bottom-line of small time mom-and -pop shops, a southern stand-alone is using the opportunity to quietly go about its job. The no-frill retailer Subhiksha has taken the populist route of luring customers with less money for greater value strategy. Its time to welcome the socialism in shopping. The idea is to welcome a person with dirty slippers with the same zeal as we greet somebody who has parked his big long car outside the store, the fact is that the Rs 3500 crore Subhiksha has nothing but survived the onslaught of bigger fish in the sea of retail with its stand-alone and low key format so far. But victory is still not in sight. The volume game that Subhiksha decided to play by has its own flip side. Too many stores in vicinity in the same area are eating into the margins of outlets. So the chain is busy fighting its own kith and kin. And that is not without having to jostle for space in competitors territory. The problems have only started to surface. At present, Subhiksha offers discounts in the range of 7 to 10 per cent on almost every item. The acceptability of the concept of discount retailing has

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always been there, but how does Subhiksha manage it so consistently? Answer is: Unlike mall centric retail outlets where primarily, high-end customers are in the scheme of things, it has chosen to focus on the middle class. And for that very reason it cannot afford to ignore the discount part. To ensure loyalty, consistent low price is the only carrot in this competitive sector. And when a retailer aims to dish out discounts of about 10 per cent on every units MRP, it is imperative to have presence in as many centres as possible, the only reason for going ubiquitous, With lesser margins, Subhiksha has volumes on its side to compensate.

SUBHIKSHA IN RAJASTHAN:Operation of Rajasthan Subhiksha started in March 07. Where in, the operation team came in the Jaipur first and started searching for good properties for the outlets. After the regular hard work on 18th Aug. Subhiksha launched its 4 telecom exclusive outlets in Jaipur. Since than it never look back. Telecom exclusive launched was followed by the massive launch of its 4 super market stores on 7 Nov. 2007 In Ajmer, Subhiksha showed its presence in the month of Dec. 07, in the same month Subhiksha started its pharmacy wing in all its super markets. Now it has one outlet in kishangarh which will be followed by some of the more stores launch in Alwar, Kota & Udaypur.

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RESEARCH METHODOLOGY

Research Problem: - Level of customer satisfaction at Subhiksha

Purpose of Research:To identify level of customer satisfaction over Price, products and customer service etc.

Research Design:-

Descriptive
To find out the level of customer satisfaction I used Survey research and experimental research in which I interviewed persons on one to one basis using a structured questionnaire.

Sampling Design:Population: Sampling Method: Walk-in customer and Loyalty card holders. Probability Area sampling method

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Sample Size: -

100 customers of Subhiksha

Data collection:Instrument: - Questionnaire Method: - Personal interview

Interpretation of Result By Graphical Representation

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Satisfaction level on price

6% 23%

71%

23% Customers are very satisfied 71% Customers are somewhat satisfied 6% Customers are dissatisfied

SATISFACTION LEVEL ON PRODUCT QUALITY

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4% 30%

66%

30% are very satisfied with product quality 66% are somewhat satisfied with product quality 4% are somewhat dissatisfied with product quality

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4% 30%

66%

30% are very satisfied with product quality 66% are somewhat satisfied with product quality 4% are somewhat dissatisfied with product quality

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satisfaction level on customer service

47%

53%

53% are very satisfied with customer service 47% are somewhat satisfied with customer service

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AWARENESS ABOUT LOYALTY CARD (SUBHIKSHAM CARD):-

Customer knows about loyalty card or not?

36%

64%

64% customer knows about loyalty card 36% customers doesn't know about loyalty card

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AWARENESS ABOUT SUBHIKSHAS FREE HOME DELIVERY SERVICE

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Awareness about free home delivery service

28%

72% 72% customers knows about subhiksha's free home delivery 28% customer doesn't know about subhiksha's free home delivery

DOES SUBHIKSHA FULFILL CUSTOMERS HOUSEHOLD REQUIREMENTS:-

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31%

69%

69% Customer says No

31% Customer says Yes

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DOES CUSTOMER KNOW THAT SUBHIKSHA PROVIDE 10% DISCOUNT ON MEDICINES?

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Does customer know about 10% dis. on medicines?

46% 54%

54% customers know about this discount 46% customer doesnt know about this discount

CONCLUSION

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After analyzing the satisfaction level of customer on price, products and customer service it has come to know that 23% customers are very satisfied, 71% are somewhat satisfied and 6% are dissatisfied with the price.
30% customers are satisfied, 66% somewhat satisfied and 4% are

dissatisfied with products quality.

53% customers are very satisfied and 47% are somewhat satisfied

with customer service of subhiksha. Awareness about loyalty card- 64% customers aware about loyalty card and 36% customers are unaware about loyalty cards. 72% customers aware about subhikshas free home delivery service and 28% are unaware. 61% customers are in favour of discount on MRP, where 23% are in favour of providing various offers on products and 16% required both things.
69% customers think that subhiksha does not fulfill their household

requirements.

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We think that we are getting a measure of customer satisfaction by tallying the number and types of customer complaints we receive each period. But in fact, 95% of dissatisfied customers dont complain; many may just stop buying. There is an intimate connection among product and service quality, customer satisfaction, and company profitability. Higher levels of quality result in higher levels of customer satisfaction. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity with the brand, not just a rational preference. The result is high customer loyalty. Most companies fail to measure individual customer profitability. The well known 80/20 rule says that the top 20% of the customers may generate as much as 80% of the companys profits.

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RECOMMENDATIONS Adopting customer-oriented thinking My first recommendation is to adopt customer-oriented thinking which requires the company to define customer needs from the customers point of view because a customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves. Company should try to adopt some strategies like- Focus on target market, customer needs, integrated marketing.
Focus on Target market- we know that we cannot satisfy every need

or demand but we can define our target market and try to fill all the requirements of that market.
Customer needs- Company should take customer oriented thinking

which requires giving chance to customer to think and state about his or her need. Company can respond to customers requests by giving customers what they want, or what they need. Company should try to convert somewhat satisfied customer into very satisfied customers. Company can do this thing if:
Company able to identify the customers need and requirements.

The product or service should match customers expectations.

I recommend that company must make sure that the customers orders

are filled correctly and on time.

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 Company must stay in touch with customers after the sale to ensure

that they are satisfied and remain satisfied.

Company must gather customer ideas for product and service

improvements and convey them to the appropriate company departments. Integrated marketing- The Companys success depends not only on how well each department performs its work but also on how well the various departmental activities are coordinated. For instance- HR department should hire good and educated sales persons and training department should train them perfectly time to time.

More Emphasize on Sales assistance:Subhiksha should more emphasize on the training of sales force available at the stores with the information of new products and schemes, so that they are fully equipped with the information and schemes related to the product, hence they can improve in their working skills

The need for customer retentionLosing profitable customers can dramatically impact a firms profits. The cost of attracting a new customer is estimated to be five times of the cost of keeping a current customer happy.

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 Adding Financial Benefits Company should offer some financial benefits to the customer. They are: Through frequency marketing programs (FMPs), we can provide rewards to customers who buy frequently and/or in substantial amounts. Company can offer price club cards to its customers that provide member customers with unadvertised discounts on particular items. More Emphasize on customer service:There should be more Emphasize on customer service. Because Subhiksha mainly facing the competition with Mom & Pop stores (kirana stores), and they have personal relationship from long time of period with customers. Thats why company try to make better relationship with their customers.
Include some new product categories: -

Even providing good services to the costumers company can not get desired attention from costumers because of low product category so I recommend that company should Include some new product categories like fresh fruits and vegetables because due to these product categories we can attract more customers and can increase their basket size. and similarly their satisfaction level towards companys stores.

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Annexure I (Questionnaire)
Level of Customer Satisfaction at Subhiksha

Respondent Name : Address : Gender: Occupation: (a) Male (b) Female (d) student

(a) Business (b) Service (c) House Wife

1. Are you satisfied with the Price of Subhiksha? (a)Very Satisfied (b) Somewhat Satisfied (c) Dissatisfied

2. Are you satisfied with the product quality of Subhiksha? (a)Very Satisfied (b) Somewhat Satisfied (c) Dissatisfied

3. Overall, how satisfied are you with the customer service experience at Subhiksha stores? (a)Very Satisfied (b) Somewhat Satisfied (c) Dissatisfied

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4. Are you aware about Subhiksham card? (a)Yes (b) No

5. Are you aware that Subhiksha offers free home delivery without any pre-conditions? (a)Yes (b) No

6. Does Subhiksha fulfill your household requirements i.e. food, nonfood and staple items? (a)Yes (b) No

7. Do you know that Subhiksha provides 10% discount on medicines? (a)Yes (b) No

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Bibliography

BOOKS:1. Kotler, Philip, Marketing Management, New Delhi, Prentice Hall Of India, 1998. 2. Kothari, C.R., Research Methodology, New Delhi, New Age International Publishers, Second Revised Edition: 2004

3. Stephens, Nancy J., Customer - focused Selling, U.S.A., Adams Media Corporation, 1997

MAGAZINES AND JOURNALS:Images Retail, July, 2008

WEBSITES:www.wikipedia.com www.google.com www.retailbiz.coms

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