CUSTOMER LOYALTY

Heritage Food Store.

 CONTENT
CHAPTER I-INTRODUCTION
• MEANING & DEFINITION
• NEED & IMPORTANCE OF THE STUDY
• OBJECTIVE OF THE STUDY
• REASEARCH METHODOLOGY
• SCOPE OF THE STUDY
• ORGANISATION OF THE STUDY
CHAPTER II-LITERATURE REVIEW
• THEORTICAL CONCEPTS IN THE TOPIC
• MODELS OR THEORIES IF ANY
• LITERATURE SERVEYS
CHAPTER III-COMPANY PROFILE
• HISTORY OF COMPANY
• ORGANISATIONAL STRUCTURE
• PRODUCTS AND SERVICES
• FINANCIAL PERFORMANCE
• AWARDS AND ACHIEVEMENTS
 CHAPTER I-INTRODUCTION
Meaning: Customer loyalty is positively related to customer satisfaction as happy
customer consistently favor the brands that meet their needs.

Definition: Customer loyalty indicates the extent to which customers are devoted to a
company’s products or services and how strong is their tendency to select one brand
over the competition.
 NEED AND IMPORTANCE
Customers are the link to your business success. Customer satisfaction and customer loyalty
should be incorporated into the long-term goals of the business. This study will help to know
the customer satisfaction towards the Heritage.

It helps in improving preference towards products of the store. Retain and increase the
customer base and improve customer relationship through collecting information form the
customer of Heritage.
 OBJECTIVE & SCOPE OF THE STUDY
Objective:
To strengthen a positive customer experience.
To show customers that its worth to come back to the store.
To encourage customer referrals
To build social proof.
To suggest for improvement in sales of Heritage.
Scope:
The study has been conducted at heritage fresh at Abids, Hyderabad. The duration of the study
was 35 days.
 RESEARCH METHODOLOGY
Research Design
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to research purpose. It is a blue print of the study and
the descriptive research design was used in this study for analysis.

Sampling Technique
In this study, simple random sampling technique have been used to collect information from
customer through questionnaire.
 ORGANIZATION OF THE STUDY
The study is arranged in a logical pattern.
• First chapter consist of INTORDUCTION of the study includes the need, objective, scope for the
study, research methodology-research design, sample design, source of data, tools and Techniques
used for data analysis, structure of the study.
• Second chapter consist of REVIEW OF LITERATURE which reflects the relevant theoretical and
empirical background of the problems.
• Third chapter consist of the COMPANY PROFILE which contains a brief historical retrospect about
the entire of the study.
• Fourth chapter consist of DATA PRESENTATION, ANALYSIS AND INTERPRETATIONS
based on the collected data from various primary and secondary sources.
• Fifth chapter consist of FINDIS AND CONSLUSIONS along with LIMITAIONS AND
SUGGESTIONS is concluded with BIBLIOGRAPHY and the ANNEXURE which contains the
questionnaire.
 CHAPTER II-LITERATURE REVIEW
A literature review is the effective evaluation of selected documents on a
research topic. A review may form an essential part of the research process or
may constitute a research project in itself. In the context of a research paper
or thesis the literature review is a critical synthesis of previous research.

Most often associated with academic-oriented literature, such reviews are

found in academic journals, and are not to be confused with book reviews
that may also appear in the same publication. Literature reviews are a basis
for research in nearly every academic field
 CHAPTER III- COMPANY PROFILE
History:
Heritage Foods Limited is one of the largest private sector dairy enterprises in South India. The company has
recently expanded into food and grocery retailing under the brand “Heritage Fresh”. It was established in
1992 by Telgu Desam Party leader Nara Chandrababu Naidu with three business divisions viz.., Dairy,
Retail, and Agri under its flagship company Heritage Food Limited (HFL). The annual turnover of the
Heritage Foods crossed Rs 2072.27 crores in financial year 2014-17.
Organization Structure:
Founder – Sri Nara Chandrababu Naidu
Board Of Directors:
• Sri D. Seetharamiah, Cahirman,
• Smt N. Bhuvaneswari, Vice-Chair-Person & Managing Director
• Dr.V. Nagaraja Naidu, Director
• Sri.M. Siva Rama Vara Prasad, Additional Director
• Sri.N.P Ramakrishna, Director
• Sri Lokesh Nara, Director
• K Durga Prasad Rao, Whole Time Director.
PRODUCTS & SERVICES
 FINANCIAL PERFORMANCE
The total turnover is rupees 341 crores during the financial year 2006-2007 against the
turnover of 292.02 crores on 2005-2006. Today Heritage distributes quality milk & milk
products in the states of A.P, Karnataka & Tamilnadu.
During the year 2006-2007 liquid milk sales was rupees 28329.79 lakhs against rupees
2425.23 lakhs in the previous year. The sales of milk products including bulk sales of creams,
ghee and butter were recorded rupees 5781.59 against rupees 4677.21 lakhs.
 AWARDS & ACHIEVEMENTS
1st prize in National Energy Conservation Award for the Year 2014
Images Most Admired Retailer of the Year- 2014 (Category Food & Grocery)
1st prize in Energy Conversation for the Year 2012
THE GREAT INDIA ICE CREAM CONTEST 2009
Fortune List of 50 Most Powerful Business Women.
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION:

For analysis and interpretation, data from customers of Heritage
store abids was recorded and analyzed and based on their
responses the graphs were designed so as to make the readers
interpret the responses given by the employees.

DATA WAS COLLECTED USING QUESTIONNAIRE METHOD.

TOOLS USED IN GRAPHICAL REPRESENTATION:

- Pie chart and Bar graph
 1.GENDER
TABLE 4.1 GENDER

GENDER NO. OF RESPONDENTS PERCENTAGE

MALE 45 45
FEMALE 65 65
TOTAL 100 100

GRAPH 4.1 GENDER

Interpretation: From the above table, 45% respondents

surveyed are male and 65% are female customers
 2.GENDER
TABLE 4.2 AGE

AGE NO.OF PERCENTAGE GRAPH 4.2 AGE

RESPONDENTS
<18 10 10
19-25 25 25
25-40 35 35
40-60 20 20
60> 5 5

TOTAL 100 100

Interpretation: From the above table, 10% respondents belong to below 18 age group, 25%
belongs from 19 to 25 years,40% belongs from 25 to 40 years ,20% belongs from 40 – 60 age
group, 5% belongs to above 60 years
 3.OCCUPATION
TABLE 4.3 OCCUPATION

OCCUPATION NO. OF RESPONDENTS PERCENTAGE

STUDENT 15 15
SELF EMPLOYMENT 35 35
GOVT. JOB 20 20
OTHER 30 30
TOTAL
GRAPH 4.3 OCCUPATION 100 100

Interpretation:
From the above table, 15% respondents are students, 35% are self-employed ,20% have
govt. jobs and 30 % have other occupation.
 4. WHAT IS YOUR ANNUAL
INCOME
TABLE 4.4 ANNUAL INCOME

ANNUAL INCOME NO. OF RESPONDENTS PERCENTAGE

LESS THAN 50,000 5 5
50,000-1,00,000 15 15
1,00,000-1,50,000 25 25
1,50,000-2,00,000 37 37
MORE THAN 2,00,000 18 18
TOTAL 100 100
40% 37%

30% 25%
18%
20% 15%
10% 5% Series1

0%

Interpretation: From the above table, 5% respondents have less than 50,000 annual income p.a., 15 %
respondents have from 50,000-1,00,000 annual income p.a., 25% respondents have from 1,00,000 to
1,50,000 annual income p.a., 37% respondents have from 1,50,00 to 2,00,000 annual income p.a., 18%
 WHERE DO YOU PURCHASE YOUR .5
?MONTHLY HOUSEHOLD PROVISION
TABLE 4.5 PURCHASE OF HOUSEHOLD PROVISION

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

HERITAGE FRESH 40 40
ANY OTHER MODERN 25 25
OUTLET
LOCAL MARKET 35 35
TOTAL 100 100
45%
40%
35%
30%
25%
20% 40% Series1
35%
15%
25%
10%
5%
0%
heritage any other modern outlet local market

Interpretation: From the above table, 40% respondents purchase from Heritage,
25 % respondents purchase from any other modern outlet, 35% respondents
purchase from local market.
 6. PLEASE SPECIFY THE REASON FOR
REGULAR / OCCASIONAL PURCHASE
FROM HERITAGE?
TABLE 4.6 SPECIFY THE REASON OF REGULAR/ OCCASIONAL PURCHASE

REASON NO. OF RESPONDENTS PERENTAGE

QUALITY STUFF 32 32
AVAILABILTY 48 48
GOOD AMBIENCE 20 20
TOTAL
GRAPH 4.5 PURCHASE 100
OF HOUSEHOLD PROVISION 100

Interpretation: From the above table, 32% respondents tend to purchase for quality stuff, 48% respondents
tend to purchase for availability of items and 20% respondents purchase for good ambience.
 7. FOR HOW MANY YEARS YOU ARE
USING HERITAGE FRESH PRODUCTS?
TABLE 4.7 FROM HOW MANY YEARS YOU ARE PURCHASING HERITAGE PRODUCTS
YEARS NO. OF RESPONDENTS PERCENTAGE
LESS THAN A YEAR 30 30
1YR -2YRS 40 40
2YRS-4YRS 30 30
TOTAL 100 100
GRAPH 4.7 FROM HOW MANY YEARS YOU ARE PURCHASING HERITAGE
PRODUCTS

Interpretation:
From the above table, 30% respondents purchase
from less than a year, 40% respondents purchase
since 1yr to 2 yrs., and 30% respondents purchase
since 2 – 4yrs.
 8. WHICH OF THE FOLLOWING
CHARACTERISTICS MAKE YOU BUY THE
PRODUCT?
TABLE 4.8 WHICH CHRACTERTISTIC MAKE YOU BUY PRODUCTS

RESPONDANTS NO. OF RESPONDENTS PERCENTAGE

EASY AVAILABILITY 21 21
QYALITY 35 35
QUANTITY 24 24
DURABILITY 20 20
TOTAL
GRAPH 4.8 WHICH CHRACTERTISTIC 100 PRODUCTS
MAKE YOU BUY 100

Interpretation: From the above table, 21%

respondents buy products due to easy availability,
35% respondents buy due to quality, 24% buy due to
quantity and 20% buy due to durability.
 9. DO YOU LIKE TO PURCHASE
PRODUCTS AGAIN FROM HERITAGE?
TABLE 4.9 DO YOU LIKE TO PURCHASE AGAIN

RESPONDENTS NO. OF RESPONDENT PERCENTAGE

YES 65 65
NO 15 15
MAY BE 20 20
TOTAL 100 100
GRAPH 4.9 DO YOU LIKE TO PURCHASE AGAIN

Interpretation:
From the above table, 65% respondents prefer to
purchase again, 15% prefers not to purchase and
20% may purchase again from Heritage fresh.
 10. CHOOSE THAT ONE EXTRA BENEFIT
WHICH YOU LIKE PROVIDED BY
HERITAGE?
TABLE 4.10 WHICH BENEFIT YOU LIKE

RESPONDENTS NO. OF RESPONDESNTS PERCENTAGE

FORMER MEMBERSHIP 0 0
BUY 1 GET 1 FREE 50 50
EXCHANGE OFFERS 21 21
DISCOUNT ON CASH 29 29
TOTAL 100 100
GRAPH 4.10 WHICH BENEFIT YOU LIKE

Interpretation: From the above table, we can

interpret that 50% respondents choose buy 1 get 1
free as benefit, 21% choose exchange offers and
29% choose discount on cash.
 11. HOW SATISFIED ARE YOU WITH THE
OFFERS PROVIDED BY HERITAGE?
TABLE 4.11 ARE YU SATISFIED WITH OFFERS

RESPONDENTS NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 11 11
SATISFIED 53 53
MODERATE 19 19
DISSATISFIED 12 12
HIGHLY DISSATISFIED 5 5
TOTAL
GRAPH 4.11 ARE YU SATISFIED WITH OFFERS 100 100

Interpretation: From the above table, we

can depict that 11% respondents are
highly satisfied by the offers provided by
heritage, 53% are satisfied, 19% feel
moderate about the offers provided ,12%
are dissatisfied and 5% are highly
dissatisfied.
 12. GIVE YOUR RATINGS ON SERVICES
PROVIDED BY HERITAGE FRESH?
TABLE 4.12 RATINGS ON SERVICES PROVIDED BY THE COMPANY
particulars Highly Satisfied Moderat Dissatisfie Highly
satisfied e d Dissatisfie
d
Customer 35 31 20 8 6
help desk
Store 20 26 30 14 10
managem
ent
Billing
GRAPHS 20 ON SERVICES
4.12 RATINGS 30 35
PROVIDED 8 COMPANY5
BY THE

CUSTOMER HELP DESK STORE MANAGEMENT

BILLING

Interpretation: From the above table, 31% are

satisfied with customer help desk ,30% are satisfied
with store management, 30% feel moderate for
billing service provided by heritage fresh.
 14. GIVE YOUR OPINION TOWARDS
HERITAGE PRODUCTS?
TABLE 4.14 OPINION TOWARDS HERITAGE PRODUCTS

RESPNDENTS NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 30 30
GOOD 23 23
AVERAGE 36 36
BAD 6 6
VERY BAD 5 5
TOTAL 100 100
GRAPH 4.14 OPINION TOWARDS HERITAGE PRODUCTS

Interpretation: From the above table, we

can interpret that 30% of respondent's rate
heritage products excellent, 23% rate
good, 36% rate average, 6% rate bad and
5% rate very bad.
 13. ARE YOU GETTING ALL YOUR
HOUSEHOLD REQUIREMENTS DURING
VISIT TO HERITAGE?
TABLE 4.13 ARE YOU GETTING HOUSEHOLD RQUIREMENTS DURING THE VISIT

RESPONDENTS NO. OF RESPONDENTS PERCENTAGE

YES 76 76
NO 24 24
TOTAL 100 100
GRAPH 4.13 ARE YOU GETTING HOUSEHOLD RQUIREMENTS DURING THE
VISIT

Interpretation:
From the above table, we can depict that 76%
respondents are getting over all household
requirements and 24% are not getting.
 15. GIVE YOUR LEVEL OF
SATISFACTION WITH HERITAGE STORE?
TABLE 4.15 LEVEL OF SATISFACTION TOWARDS HERITAGE STORE

particulars Highly Satisfied Moderate Dissatisfied Highly

satisfied dissatisfied
Price 20 38 27 11 4
Quality 24 30 31 9 6
Brand 20 38 20 12 10
Availability 35 28 28 3 6
GRAPH 4.15 LEVEL OF SATISFACTION TOWARDS HERITAGE STORE

PRICE QUALITY
BRAND AVAILABILITY

Interpretation: From the above table ,38 % are

satisfied by the price of heritage products, 30% are
satisfied but the quality provided, 38% are satisfied
with brand and 35% are highly satisfied with the
availability of products.
 16. WHAT MAKES YOU PREFER
HERITAGE INSTEAD OF ANY OTHER
FRESH STORE?
TABLE 4.16 WHAT MAKES YOU PREFER HERITAGE FROM OTHER STORES

RESPONDENTS NO. OF RESPONDENTS PERCENTAGE

PRODUCTS 32 32
SERVICES 12 12
LOCATION 43 43
STORE ENVIRONMENT 13 13
TOTAL 100 100
GRAPH 4.16 WHAT MAKES YOU PREFER HERITAGE FROM OTHER STORES
Interpretation: We can interpret that 43%
respondents choose Heritage for its
location, 32% respondents prefer because
of products, 13% prefer for store
environment, 12% prefer for heritage
services over other stores.
 5.1 FINDINGS
1. Majority of respondents are between age group of25 – 40.
2.35% of respondents are self-employed, 30% other occupation, 20% have govt jobs and 155 are students.
3. Majority of respondents have annual income p.a. between 1, 50,000-2,00,000.
4.40% of respondents purchase monthly household from heritage store, 35% purchase from local market and 25%
purchase from other modern outlet
5.48% of respondents specified their reason for regular/occasional purchase is Availability, 32% specified reason as
quality stuff and 20% specified as good ambience.
6. Majority of respondents are using heritage products since 1 – 2yrs.
7.35% of respondents prefer heritage products due to it quality, 24% prefer due to quantity , 21% prefer due to easy
availability and 20% prefer due to durability.
8.65% of respondents would purchase again from heritage, 20% may purchase.
9. 50% of respondents like buy 1 get 1 free benefit provided by heritage, 29% like discount on cash and 21% like
exchange offers.
10. Majority of respondents are satisfied by the offers provided by the heritage.
11. 35% are satisfied by the customer help desk service, 30% are satisfied by the store management and 37% are
satisfied by billing service provided by the heritage store.
12. Majority of them get their household requirement from heritage store.
13. 30%of respondent's rate heritage products as excellent, 23% rate good and 36% rate average.
14. Majority of respondents are satisfied by the heritage store.
15. Majority of the respondents preferred heritage store for its locations than other stores.
 5.2 CONCLUSION

From this study it can be concluded that majority of the customers are satisfied
and are loyal to heritage store. Consumer behaviour towards heritage fresh
was satisfied which is the result determining loyalty. Various factors were taken
in consideration to analyse the satisfaction. Quality, availability brand are
main factors which attracted the customers towards the heritage store. The
company provided many offers on products to attract the customers. Thus,
customers have a favourable balance towards products and services
provided by heritage.
 5.3 LIMITATIONS

The study is limited to 100 random customers of heritage fresh at abids.

There was the limitation of respondent perception while collecting the data as different
respondents carried different mood.

This study is limited to one area and one branch of Heritage.

 5.4 SUGGESTIONS
• The company has to improve on some promotional strategies.
Craft an advertisement that clearly states in highly visible text points you want to highlight
about the products.
Approach local grocery stores about having your product placed in your category stores.
Place ads on television stations, websites and publications likely to be visited by middle
and upper class families.
• The company also have to improve their relationship with the customers for the
growth of organisation.
• The company should organise loyalty programs and former memberships to retain
the customers.
• The company should provide better customer service at store by interacting with
personally.
• Target your customers.
• Use your research to help hone your marketing strategy.
 BIBLOGRAPHY:

Books
1. 13th edition – marketing management (author – Philip Kotler and kelvin keller)

Articles:
1. Articles on reliance company
2. http://www.slideshare.net/samjose009/research-study-based-on-customer-loyalty
Websites:
1. http://peloyaltymarketing.com/customer-loyalty/what-is-customer-loyalty/
2. http://www.snapsrurveys.com/blog/customer-satisfaction-customer-loyalty/
3. www.scribd.com
4. www.slideshare.com
5. www.google.com
6. The Definitive Guide to Customer Relationship Management, V. Kumar, Richard Hammond, Herb
Sorensen and Michael R. Solomon.