PRESENTATION OF CRMTOPIC :

CRM IN RETAIL INDUSTRYPRESENTED

BY MANSI

DHINGRA

Customer Relationship Management is a continuously updated process of identifying relative value of customers and designing customized company interaction to delight them so that they do not just remain with the company profitably but also be the company’s ambassador. Full involvement and empowerment of employees and appropriate technology are two essentials for successful CRM.”

WHAT IS CRM ?

Retailing is the last interaction point between the company’s product and the consumer. It is characterised by most of the service market characteristics. One important characteristics is very high degree of involvement of the consumer in the entire process. It is worth mentioning that like most other businesses, the very existence of establishment is,till the customers visit the store. It is also of great significance that these visits should be on a consistent basis.Hence, RETAILING by definition is meant as “ Re-tailing” to thecustomers so that they comeback.

RETAIL INDUSTRY

Retailing consists of all activities involved in selling goods and services to consumers for their personal , family , or household use. It covers sales of goods ranging from automobiles to apparel and food products, and services ranging from hair cutting to air travel and computer education.Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail industry.

Realising the importance of customer retailing experience in the growth of organised retail business, most of the retail formats, brands and companies realised the importance of keeping the customers with superior experience and hence started designing their offers with a new catch word “ customer delight “. Most of the organised retail stores have separate lounges for different segments of customers as Kids, Females and Males, Senior citizens.Kids section carries games and other accessories for their engagements ; Senior citizens section is either placed on the ground floor or supported with escalator or lift so that they may not use stair case ; Female section has a private space for private uses.Food retail stores have even customised offerings along with separate space for different categories of customers. This concept percolated to many of the non conventional retail businesses as Banking and Telecom.Even late starter public sector banks have carved out a separate branch to cater to retail customers.

POPULAR FORMATS OF RETAILING

Since the retail industry covers a wide range of corporations, it can be classified in various formats. However, the most popular format of classification is by the type of business channel to the retailer implements to do business. Some of the popular categories are as follows :

Mom -and- Pop stores :These are represented by the small ,individually owned and operated retail outlets. It is often seen that these are family –run businesses which cater to the local community and are capable of providing high level of service. However ,they often have limited product selection.

Mass Discounters :These are the types of retailers who sell either general or specialty merchandise. But their forte is in offering discount pricing to their customers. Compared to department stores , mass discounters offers fewer services and lower quality products.

Warehouse stores : These are a form of mass discounter retailer. The prices offered by these type of retailers are even less than in traditional mass discounters.

Category killers :Major retailers also focus on a concept of specialty stores wherein they service by providing multitude of options within the product category. In Indian paralance , the concept of “ category killers” is often found in the product categories as electronics ( The Office Zone ), office supplies (Office Linc ) and Books ( Crosswords).

Department stores :These retailers offer mid to high quality products and strong level of service . However , in most cases these retailers do not fall into the full service category.

Boutiques :These are usually small stores catering very specialised or niche products which are often high –end merchandise.

Catalouge retailersThe concept of this form of retailing is that the customers will place orders after seeing products from a published catalogue.Tata sons retail venture Croma utilises this business Channel.Orders can be delieverd by either in house logistics or a third party shipper. The Format utilised by McDonalds and Pizza Hut outlets for their delievery model can be Identified as this format.

E-tailers :In this format , the retailer principally sells via the Internet.These are thousands of Online-only retail sellers of which Ebay is the most famous in India. The benefit ofThis format for customers is that it open 24*7 and for the retailer is that it does not need to stock the merchandise.

Franchise :This form of retailing comprises a contractual channel where one party controls the business activities of the other party. The common examples are Mc Donalds and Pizza Hut.

Convenience stores :As the name implies ,these general merchandise retailers cater to offering customers an easy purchase experience. Convenience is offered in many ways including through easily accessible store locations,smallstore size that allows for quick shopping , and fast check out. The product selection offered by these retailers is very limited and pricing can be high.

Vending :This form of retailing involves utilising automated methods for customers to quickly purchase the desired product. This can be interactive kiosks and vending machines. The presence of vending machines for purchase of smaller items , such as beverages and snack food, is already common in case of products like beverages and magazines.

CORPORATISATION OF INDIAN RETAIL

Big corporates such as Reliance , Tata Birla ,Future Group ,Raheja , Adani, Bharti , Godrej and Indiabulls are all trying to make their entry into retail industry and ride on the wave of this growth story. They want their presence in all the formats of retailing such as Hypermarkets , supermarkets ,convenience stores ,specialised stores and many others.

Big Bazaar Subhiksha Reliance Shopper’s StopGlobusSpencersWestsideare some of the big retail brands in India.

The proposed structure for successful implementation of retailing experiencing can have the following dimensions :

Experience through

ambience

Customer service for customer

retention

Product innovation

Leveraging technology for

speedier service

• Experience through ambience Today the concept of “ Value in Volume Out “ acts, which lays

emphasis on that customer’s visit to the store should be for value addition.

• Customer service for customer retention Customer service and customer relationship are the key to success in

modern marketing. It gains greater significance in case of retail industry where there is greater interaction between the customer and the store staff offering the service.

• Leveraging technology for speedier service There are various CRM Software programs that are used by retail

stores for addressing customer complaints , attending queries and designing grievance handling mechanisms.

• Launching innovative products for faster customer acceptability Greater degree of product customisation is required to attract

customers.

CLASSIFICATION OF INDIAN RETAIL

MODERN FORMAT RETAILERS Supermarkets HypermarketsDepartment Stores Speciality Company Owned Company Operated

TRADITIONAL FORMAT RETAILERS Kiranas KiosksStreet MarketsExclusive / Multiple Brand Outlets

LARGE INDIAN RETAILERS Hypermarket• Big Bazaar• Giants• Star

Department store• Lifestyle•Pantaloons• Piramyds

Entertainment• Fame Adlabs•Fun Republic•PVR

THANK YOU !!