PROJECT REPORT ON

CUSTOMER RELATIONSHIP MANAGEMENT

(Mall of Travancore, Trivandrum

Pantaloons, MG Road, Ernakulam)

Group members
Submitted to: Dr. Sheena k
Aswin JIJO- FK-3343
Abhijith g- FK-3413
Umang Thakkar- FK-3428
Sanam Subair-FK-3326
INDUSTRY PROFILE OF INDIAN RETAIL SECTOR

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Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to
the entry of several new players. Total consumption expenditure is expected to reach nearly US$
3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10% of the country’s
gross domestic product (GDP) and around eight% of the employment. India is the world’s fifth-
largest global destination in the retail space.
India ranked 73 in the United Nations Conference on Trade and Development's Business-to-
Consumer (B2C) E-commerce Index 2019. India is the world’s fifth largest global destination in
the retail space and ranked 63 in World Bank’s Doing Business 2019.India is the world’s fifth
largest global destination in the retail space. In the FDI Confidence Index, India ranked 16 (after
the US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and
Italy).

MARKET SHARE
Retail industry reached US$ 950 billion in 2018 at a CAGR of 13% and is expected to reach US$
1.1 trillion by 2020. Online retail sales were forecast to grow 31% y-o-y to reach US$ 32.70
billion in 2018. Revenue generated from online retail is projected to reach US$ 60 billion by
2020.Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, is
expected to increase by Rs. 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20.

According to the Ground Zero Series findings of the consulting firm RedSeer, the retail sector is
expected to recover ~80% of pre-Covid revenue (amounting to US$ 780 billion) by end-2020.
India is expected to become the world’s fastest growing E-commerce market, driven by robust
investment in the sector and rapid increase in the number of internet users. Various agencies
have high expectations about growth of India’s E-commerce market. After an unprecedented
decline of 19% in the January-March 2020 quarter, the FMCG industry displayed signs of
recovery in the July-September 2020 quarter with a y-o-y growth of 1.6%. The growth witnessed
in the fast-moving consumer goods (FMCG) sector was also a reflection of positivity recorded in
the overall macroeconomic scenario amid opening of the economy and easing of lockdown
restrictions.

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COMPANY PROFILE
Aditya Birla Fashion and Retail (ABFRL) is an Indian fashion retail company headquartered in
Kurla, Mumbai. ABFRL has a network of 3031+ stores with a presence across approximately
25,000 multi-brand outlets with 6,500+ point of sales in department stores across India. In 2013,
Aditya Birla Nuvo Limited (ABNL) (ABNL) took over Pantaloons.
Pantaloons is India’s leading retailer that operates multiple retail formats in both the value and
lifestyle segment. It is Headquartered in Mumbai. Pantaloons was previously controlled by the
Future Group, later it was taken over by Aditya Birla Nuvo Limited. Pantaloons stores have an
abundance of choices across categories that range from western to Indian wear, formal to party
wear and active wear for men, women and kids. Pantaloons offers a host of well-loved in-house
labels as well as national brands across all the categories. Pantaloons today retails over 200
licensed and international brands, including 24 exclusive in-house brands Pantaloons is
amongst the most widely present retailers with a network of 308 stores 400000 sq. feet.
Pantaloons has a pool of over 15 million deeply engaged customers. Pantaloons Fashion &
Retail Limited generated a revenue of over 35 billion Indian rupees in financial year 2020.
Vision & Mission Vision:
“Pantaloons shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner • Indian Consumer in the most
profitable manner Mission: • We shall infuse Indian brands with confidence and
renewed ambition • We shall be efficient, cost- conscious and committed to
quality in whatever we do • We shall ensure that our positive attitude, sincerity,
humility and united determination shall be the driving force to make us
successful.”

Why Customer relationship management in retail sector

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CRM stands for Customer Relationship Management. With a powerful CRM system and a
proactive approach, the company can gather information about the customer base and use the
data to sell more, market better, and grow the business effectively. Customer relationship
management system is capable of collecting and storing useful customer information about
customer base. With automated data collection or manual entries, the organization can build a
great wealth of powerful information that can be used to improve the company and make more
profit and improve the market share.

CRM systems are capable of gathering and storing data about individual customers.

Such data can include:

● Demographic information
● Shopping patterns
● Purchase history
● Preferences
● Contact information
● Customer service notes, etc

Benefits of CRM in the Retail Sector

● Make your customers happier

● Strengthen customer loyalty
● Improve company performance
● Spend less money on ineffective marketing
● Create successful marketing campaigns with a higher ROI
● Increase customer retention rate
● Encourage repeat sales and return customers

CRM PRACTICES IN RETAIL STORES:

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CRM for the retail industry is more than just building good customer relationships. Some of the
practices include:

❖ Reaching out shoppers at the right time, through the right channel with a personalized
offer and ensuring the best use of communications channels, such as email, SMS, and
social.
❖ Managing loyalty programs that drive long-term retention and share of wallet.
❖ Supporting customers after purchase of products and gathering feedback for continual
improvement.
❖ Tracking the effectiveness of marketing campaigns to increase foot traffic and sales.
❖ Supporting a seamless Omni channel retail strategy.

CRM PRACTICES IN PANTALOONS

More than a business imperative, Pantaloons give more importance to the customers ie. they are
customer centric. The main aim is to become preferred choice for the customers and to achieve
competitive advantage in the fashion industry. They have built a strong and lasting brands with
internal capabilities in product differentiation, positioning and communicating value. Pantaloons
they use Brand Equity Index and Customer Value proposition to collect data and inform the
branding decision.

GREEN CARD CRM PRACTICES AT PANTALOONS

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CRM is also practiced through the “GREEN CARD” program. The Green card membership is
meant for Pantaloons Customers and can be used at Pantaloons online & offline stores. By
becoming a Green Card Member, the member authorizes Pantaloons to communicate, from time
to time, on contact details provided by the member.

The value of 1 green card reward point is 25 paise. To earn Green card points on first bill,
members need to shop for Rs 2000/- and above. Pantaloons provide exclusive billing counters
for the selected customers who hold the card at selected store. Pantaloons has given different star
ratings for their customers and has given them various offers and discounts according to their
star ratings. The ratings are given as 3, 5 and 7. The customers get benefits based on their ratings
starting from exclusive billing counters, anytime assisted shopping etc.

Benefits of Green card program

FASHION FRIDAY- the holders of green cards will get an additional 5% discount to all
members. Moreover, they will also receive Instant discounts every time when a member shops at
Pantaloons. There will be regular updates on collections and promos (beginning and end) via
catalogues, sms and email. Through CRM software, a customer's buying behavior is tracked and
based on that the customers are identified and are informed for their preferences whenever new
stocks of their preferred brands arrive at the store.

ONE CARD, ANY STORE

The customers can use one card at any store. As a result, it integrates customer databases across
all stores of Pantaloons.

Customers can also provide them through Dropbox and share with us program-
([email protected])

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Pantaloons also provide Gift cards for the customers that allows customers to choose from the
store’s entire collection of western and ethnic fashion, accessories, handbags, footwear,
cosmetics, perfumes, watches, sunglasses and more, for men, women and kids. With a one-year
validity and no limit on spending on each shopping spree, the customers can shop as per their
convenience even during the sales period.

The customers can redeem the credit partially, and save the rest for later purchases.

The customers can make the booking for the gift cards: [email protected].

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 (Sanam subair Fk-3326 pg 2-8)

CRM SOFTWARE USED BY PANTALOONS - SAP

SAP helps companies and organizations of all sizes and industries run their businesses profitably,
adapt continuously, and grow sustainably.

The company develops software solutions that are used by small businesses, midsize companies,
and large corporations. With standard applications, industry solutions, platforms, and
technologies, every business process can be mapped and designed. The software collects and
processes data on one platform, from raw material purchasing to production and customer
satisfaction. SAP solutions can be installed “on premise” at a user’s location(s) or used from the

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cloud, helping companies analyze and efficiently design the entire value chain. SAP solutions
can also be used to create forecasts, such as when a machine needs to be repaired or how revenue
will develop in the next half year.

In addition, SAP helps customers seamlessly link operational data on business processes with
experience data on emotional factors such as purchase experience and customer feedback. This
enables companies to better understand and respond to their customers.

What SAP solutions are available?

SAP offers solutions across a wide range of areas:

● ERP and Finance

● CRM and Customer Experience
● Network and Spend Management
● Digital Supply Chain
● HR and People Engagement
● Digital Supply Chain
● Experience Management
● Business Technology Platform
● Digital Transformation
● Small and Midsize Enterprises
● Industry Solutions

IMPORTANCE OF SAP

SAP is essential in many businesses because it allows every department to communicate with
each other easily. Departments such as sales, inventory, finance, production and human resources
can access information from different departments and communicate the needs of their
department efficiently. The success of any business relies on effective communication and data
exchange among all departments, and SAP as an enterprise resource planning software enables
this communication and information exchange.

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SAP in the workplace

Many companies around the world use SAP, so understanding how to use SAP software can give
you an advantage when applying for jobs or seeking a promotion within the company you work
for. Being an expert in SAP software in your respective field of work can help lead you to a
management or leadership position. Here are a few popular industries and positions where you
would use SAP software and the modules and capabilities of each:

● Human resources management

● Project management
● Warehouse management
● Customer relationship management
● Finance management and accounting

Human resources management

SAP provides human resources managers with every tool they need to maintain a capable HR
department. HR professionals can record every piece of data about an employee from application
to termination. Here are some of the human resources sub-modules:

1. Organization management: This module allows HR professionals to create plans

for workflow management.

2. Personnel administration: This module performs the administrative task of

recording essential employee information, including hire date, personnel data, payroll
accounting and more.

3. Personnel development: This module qualifies employees and helps an HR

manager reduce employee turnover and develop employees to increase their skills and
productivity.

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 4. Time management: This module gives the HR department relevant information
about each employee's attendance, shifts, schedules and absence.

5. Payroll: This module displays information about and processes payments relating to
employee wages, benefits and taxes.

Project management

SAP provides project managers with every tool they need to manage projects from initiation to
closure. Here are some of the project management sub-modules.

1. Project initiation: The initiation module includes everything related to the setup and
launch of a project, including project definition, work breakdown structure, network
activities, milestones and project creation.

2. Project planning: The planning modules include cost planning, revenue planning,
material planning, capacity planning, workforce planning and scheduling.

3. Project execution: The execution module includes everything related to the

monitoring and implementation of a project, including goods receipt, goods issue,
timesheet entry, service entry, billing, confirmations and progress analysis.

4. Project closure: The closure module includes information and data that relate to
period-end closing and project closing.

Warehouse management

SAP equips warehouse managers with everything they need to manage a successful warehouse.
Here are some of the extended warehouse management capabilities:

1. Inbound processing management

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The SAP extended warehouse management module makes inbound processing straightforward
with data validation for shipping notifications, acceptance of production receipts and optimized
receipt processing.

2. Outbound processing management

The outbound processes module gives warehouse managers the functionality to schedule packing
and shipping activities, select stock according to attributes and augmented reality picking
features.

3. Storage and operations management

The storage module gives warehouse managers complete control of the internal process,
including cycle counting and physical inventory, stock visibility and handling equipment status.

4. Cross-functional management features

The extended warehouse management module includes other cross-functional features, such as
batch management, serial number management, dock appointment scheduling, traceability
processing and cross-functional analytics.

Customer relationship management

SAP provides a customer relationship management system that allows CRM professionals to
automate and integrate every customer activity, including sales, marketing, customer service and
commerce. Here are some functionalities of the customer relationship management module:

1. Sales CRM

The sales CRM system provides a better experience for customers by including features like
sales strategy content recommendations, AI-powered guided selling, individualized quotes, sales
negotiation workspaces, real-time quota and plan modeling, dispute resolution management
platforms and revenue, billing and invoice management.

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2. Marketing CRM

The marketing CRM system gives marketing professionals the advantage by including features
like unified customer profile access, customer behavior insights, seamless customer experience
creation, marketing campaign management, team collaboration, multi-dimensional analysis and
customer identification and targeting.

3. Customer service CRM

The customer service CRM system provides customer service representatives and managers with
the tools they need to deliver exceptional customer service. Some of the features include
customer insights, service interaction history, issue diagnosis optimization, on-demand network
connection, AI-assisted conversations and conversation transferring.

4. Commerce CRM

The commerce CRM system gives employees a comprehensive experience with many commerce
processes, including order management, component integration, industry-specific capabilities,
transparent commerce processes and platform extension.

Finance management and accounting

SAP provides a comprehensive suite of financial management and accounting systems that give
companies the tools they need to keep track of their finances. Here are a few of the finance
management systems:

1. Financial planning and analysis: This system helps finance professionals with
strategic planning, forecasting, budgeting, performance management, analytics and
reporting.

2. Accounting and tax management: This system assists professionals with

financial accounting and reconciliation, reporting, disclosure, regulation compliance and
closing process accounting.

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3. Treasury and cash management: This system includes features like corporate
treasury management, cash management, cash flow forecasting, debt management, risk
management and investment management.

4. Accounts payable and receivable: This system provides modules that assist with
credit evaluation, risk management, collections, dispute management, billing and invoice
management

Customer Voice Response System (CVRS)

CVRS is a platform which handles customer complaints and ascertains process

transparency through the deployment of an online Complaint Management System. This
encourages customers to share their experiences, feedback and complaints along with
helping us identify opportunities of interventions in order to enhance customer
satisfaction

Objective:

Encourage customers to share their experience, feedback and complaints Sort and feed
the valuable inputs to respective functions, enable service functions to identify
opportunities for improvement in order to enhance customer satisfaction, ensure on-time
closure of all product and service related complaints (within 24 hrs. Turnaround Time)

Ensuring Customer Delight Through Quality Management

Exceeding customers' expectations by offering a product of superior quality and value in

a contemporary setting, is key to our success. To measure and enhance this experience,
we use the Customer Quality Management (CQM) process, which acts as the 'voice of the
customer' for us. We take additional care to ensure that our store’s team is well-trained in
effective handling of customer feedback and returns. The process is undertaken across our
stores and captures consumer feedback on product quality. The dashboard comprises
metrics like DPMPS (Defects per million pieces sold) and % Proportion Defect Trend.
These metrics are applied at all product levels (apparel and non-apparel) and across

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 various lines - Men, Ethnic, Women and Kids. The findings are used to decide on
corrective actions, which are then routed back to our products

Customer Feedback
Feedback helps enhance the brand image by building on the positive perception of our
customer-centric image, as well as helping us to build better products by incorporating the
suggestions
Customer Communication
Beyond the label requirements mandated by local laws, all apparel product labels also include
information on raw materials utilized. Further, instructions for wash and care are included to
maintain durability of the products.
There have been no complaints and none pending against the Company regarding unfair trade
practices, irresponsible advertising and/or anti-competitive behavior during the last five years, as
of March 31 2019.

(Aswin Jijo- 9 to 15)

Value Experience in Different Perspectives i.e.,

1) Value in Exchange
2) Value in Experience
3) Value in Use

1) Value In Exchange:
The company is having very efficient billing procedure. The satisfaction with billing is
very high.The standard billing time is 30sec.Customers wishes to have more computers
included at exchange counter and number of billing counters should be increased
especially during the sales and festive season to fasten the billing process and minimize
large queues. Providing a better billing experience to the customers is vital for every
retailer. This is a bottleneck where customer can really get exhausted if they stand in a

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queue to get the billing done, even for 10 minutes. The factors that attract customers to
the pantaloons, as in the store mainly focus on their in-house brand availability and value
of money. Many customers believe that Pantaloons have their own branded products to
offer the customers with affordable price. The customers prefer for cashier optimization
since it saves time of customers and avoid unnecessary queues.

2) Value in Experience
The overall satisfaction with shopping at pantaloons is high, also they do not find
shopping tiring here, the environment is joyful but not much economical. The pantaloons
Green card, loyalty program, been designed exclusively for Pantaloons customers to
enhance customer satisfaction. Presently offered to over 4 million members. The program
entitles members to discounts, point’s redemption and special privileges at all Pantaloons
stores. The card has four tiers depending on the year’s shopping. When a customer shops,
the card updates with increasing privileges and discounts. The benefits covered under
Green card include discounts, complimentary parking, complimentary shipping,
exclusive sales preview etc. Many customers are dissatisfied with parking facilities
provided by the store. The reason is that most of the parking places are used by the
various company’s employees due to which very less spaces are there for customers also
it is chargeable and way from parking is not convenient. After the launch of WOW
PRICE, the satisfaction of customers is high with price. Customers believe Pantaloons
need to improve variety of products and provide space for children coming with their
parents for entertainment and have fun so that visiting Pantaloons will be exciting for
them. Location was one of the main reasons which attracted customers towards
Pantaloons and it took less time for majority of customers to reach pantaloons.

(Abhijith G (Fk-3413)

3. Value in Use

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 The product assortment is broad and deep, there are many product categories and each
has a lot of variants in terms of size, fit and color. Customers were found complaining
about signage as offers were not shown on signage and visual merchandising was also not
maintained properly. Consumers perceive their store brands to have consistent and
comparable quality and availability in relation to branded products. Pantaloons provides
more assortments of private level brands to compete with supplier's brands. They
maintain a lot of brands in the store. The store offers various famous External Brands as
well as a lot of Private Brands. Pantaloons focuses a lot on the visual effects inside the
store. Customer once shopped then he like to visit again and again because of loyalty
programs held for them which run various schemes for them. They are made aware of
this offers via mail and mobile phones by (SMS).

Conclusion
Pantaloons Retail India Ltd has strong goodwill in the Retail Industry in respect of quality.
Customers mostly prefer those outlets, which provide them better services, Price & product.
Customers want improvement in Pantaloons in respect of services, variety, and brands. The
customers generally prefer cash discounts. Thereafter they want more variety and quality in the
store. As in concluding we have noticed that below mentioned terms are well defined to
understand the perspective of Customer Relationship management on Pantaloons.
● Personally recognizing customers
● Frequency of Green Card members doing
repeat purchases

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● Integration of processes at the back end to
● identify customer buying habits
● Offering appropriate value and great service to
encourage repeat business
● Cross selling and better service to customer
● Beating the competition by offering a better
product, competing on the service
experience rather than price alone
● Effective tool for retaining customers.
● Promotion gets focused & thus cost
reduction
● Ensuring that customer satisfaction continues to
Improve

(Umang Thakkar: value in use &conclusion-pg 17-18)

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