Group 2 Cross Sword

8/3/2019 Group 2 Cross Sword

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ANALYSED BY-

RETAILING MANAGEMENT

Crossword

CASE ANALYSIS

1


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Question 1

Benefit of book reward program

Rewards point on purchase

Information on instore offers and promotions

Online checking of point balance

Priority in buying/ordering new release as well asevents at the store

Free subscription to eWords

Exclusive offers Associate membership cards

Gift-a-membership


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Based on member profile

Most of BRP customer are executive, top & middlemanagement, IT professional(11.08+8.87+8.54= 28.59%),which are busy people. They have time constraint to visitbook store.

Large number of members were from outside the cities,so there was very little chance that they will comefrequently to store. Membership card in present form hasno usability for them.

Presently This cards are for individuals only. But, It can begiven to corporate and educational institutes memberand discount on bulk purchase can be given.


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Based on member segmentation

As Crossword Tribes which are only 10% of total are

bring 48% of sales, But points awarded are flat as 1

point for per 40 Rs purchase. A good strategy can be

that customer who are making more purchaseshould be awarded more.

As Crossword climbers( 45%) are major part of BRP

customer. CROSSWORD should target these

customer to increase their total sales.


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Based on image perception

41 percent of BRP customers has expressed desire toincrease purchase from CROSSWORD. Which meansthere may be some constraint like unavailability oftime or fixed prices.

80 % of BRP customer said they are loyal toCROSSWORD, which indicates that CROSSWORD hasa good image among its member.

56 % BRP customers said that they will recommendCROSSWORD which suggest that CROSSWORDshould give points to its member forrecommendations.


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Difference in opinion between Walk in

& BRP Customers

Attributes Merchandise Range and display Total Walk inBRPmem

Overall merchandise range and quality 26 25 32

Range of topic/sections 34 36 22*

Selection of titles within each topic/sections in books in the adult

section 29 29 25

Selections of authors 24 26 13*

Range of topic/sections in books in the children section 31 32 24

Selection of titles within each topic/sections in books in the

children section 29 28 29

Selection of authors in children section 20 21 15

availabilty of new arrival in books 22 23 20availability of best sellers 23 24 21

range of toys available at crossroads 24 26 16*

range of music available at crossroad 21 20 22

range of stat. in CW 19 19 21

range of movies available in CW 17 17 19


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Out of all the attributes in Merchandize Range & Quality, BRPCustomers were more satisfied in overall merchandize rangeand quality, selection of titles in each topic in childrenssection and range of music available.

High dissatisfaction is observed from BRP members in rangeof topics/section, selection of authors and range of toysavailable.

Out of 13 attributes, BRP customers do not seem satisfied in10 attributes giving a clear indication that there is no

improvement in the range and quality of merchandize andthey do not find range and quality attractive.

This can be a serious threat as the customer who is regular tostore, if he is not able to find new range or quality, his loyalty

to the store might decrease.


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Attributes - sales personnel Total Walk inBRP

Members

Overall quality of the sales personnel 32 31 37

Availibility of sales person when you need them 40 40 39

Allowing you to browse at your own pace 37 35 48Knowledge of salesperson about the books and

other merchandise 29 29 30*

Politeness and courtesy 35 34 40

Friendliness and helpfulness of sales personnel 35 34 41

Ability of sales person to respond to queries 28 28 27Speed of the response of sales personnel 27 27 28

This attribute of Crossword is highly appreciable by both Walk in and BRP

members and the overall scores for different parametres is almost equal byWalk in and BRP members.

There is a wide gap in the perception of Walk in and BRP members in

allowing to browse at own pace, but the overall satisfaction still seems

high.


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Store Attributes Total Walk in

BRP

Members

Overall quality of store 49 47 61

Adequacy of space in the store to allowbrowsing amongst

various sections 45 44 53comfort of air conditioning /temperature in the store 35 35 35

Ability to provide adequate lighting in the store to allow for

comfertable reading/browsing 32 31 37

Seating/book reading space inside the store 27* 26* 37*

Seating arrangements to sit and browse through books 29* 28* 36*

Ability to provide cheerful and warm ambience of the store 32 31 37Parking arrangements outside the store 18* 18* 18*

Location of the store 28 27 37

Seating and parking arrangements are major dissatisfied parametreswhich are essential for a book store, either walk in or BRP.

The overall quality and ambience of the store is highly appreciated by

BRP members which can be considered as a major factor for their loyalty

towards the store.


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Attributes -display of books(store wise) Total Walk-in

BRP

Members

overall quality of display of books 42 40 58

Convenience of arrangements/display of books 43 42 53

neatness of arrangements of books 37 35 47

shelf planning and layout 26 26 27

visibility of new arrivals/best sellers 27 28 21

visibilty of recommendations 25 25 26

attractiveness of display in the store 28 28 29

overall quality of display of music and movies CDs/cassettes 28 28 30

overall quality of display of toys and stationery 26 26 26

Both Walk in and BRP members seem satisfied with the books display, but BRP

customers are less satisfied in visibility of new arrivals display.

BRP customers are highly educated and are in search of range and quality and new

arrivals is something that they look for, so there is a need to improve the visibility of

new arrivals and best sellers.


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Attributes -billing &

cashiering Total Walk-in BRP Members

Billing & cashiering 33 34 29

Efficiency & helpful of

the cashier 39 38 45Accuracy Of billing 35 34 43

Adequacy of billing

counters 32 32 32

Ability of cashier to

deal with your queries

on LBR program,etc 28 28 29

Less score by BRP in billing and cashiering may be due to long waiting.

Efficiency and Accuracy is highly appreciable by BRP members, a good sign for

Crossword.


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Attributes -

communication Total Walk-in BRP members

Adequacy ofcommunication 20 14 23

Relevance of

communication 14 16 13

BRP Members perceive that there is lot of information available which is

not relevant to their queries, giving an indication that there is a

requirement of training program for the sales people in the store.


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Question 4

Reward points are presently flat as 1 point for 40 Rspurchase, it can be make differentialy increasing as 3points can be given for Rs 100 purchase.

As unavailability of time is a major constraint tocustomer from purchasing book, Crossword can launchorder on phone service for book and other products forBRP members.

Sales personnel need to be given knowledge about

books and new launches.

, It can be given to corporate and educational institutesmember and discount on bulk purchase can be given.


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For BRP member who are from outside the city,rather than giving them points for purchase, theyshould be given discount in next purchase, sothat they have strong reason to come to store

again. As price has been stated as major constraint from

buying crossword, crossword should also givediscounts to its BRP members.

As Crossword is subsidiary of Shopper stop, theycan give BRP cards to shopper stop regularcustomer also.


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QUESTION 2

Key Issues Faced By Crossword

More focus on gaining new customers ratherthan retention

Only 60,000 members enrolled, 25000 wereactive members despite of lot of effort andideas gone in the design of BRP.

Awareness level of the augmented serviceswas low among the customers

Communication was not proper


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Reasons of low Activity among BRP

customers

Offers should be more lucrative should go beyonddiscounts on purchases

Customers not segregated according to theirpurchasing habits and customized services not devised

accordingly Expectation of better service delivery among BRM

members

Little customization for the priority customers

No addition to existing offers for them Discounts offered only during promotions. BRM

customers could have got more


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Cont

Membership fees :- Rs 150 ; 1 point (Re) gainedon every Rs 40 spent ; Break even occurs onlywhen 40x150 = Rs 6000 spent

=> No incentive for a BRP customer

50 reviews of new books in the e-Word simplyoverloaded the data. It should have beencustomized according to the customers interets

60% of the books purchased were of < Rs 350. Sopurchasing them as a normal walk in or a BRPcustomer made no difference ( Avg. purchase of aBRP customer= 2,500 pa)


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Cont..

Customer feedback should be incorporated in

deigning the strategy rather than going by the

normal market trends

Improper billing, cashiering and irrelevant

communication were also some of the issues.


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Relationship Retailing

Retailers seek to establish and maintain long

term bond with the customers rather than act

as if each sales transaction is completely new

encounter with them.

Providing the customers with a more friendly,

familiar environment to induce loyalty and

long time patronage.


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BRPs Low Performance

Structural Relationship Crossword provideda good ambience and layout. However, couldnot provide adequate range, quality and

display to its BRP members Social Relationship BRP members found the

team good and there were opportunities tosocialize and be comfortable at the store.

Financial Relationship The one time fees tobe paid was very high as compared to thereturns.


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Documents

Group 2 Cross Sword