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PROJECT REPORT

ON

COMPARITIVE ANALYSIS OF

LOYALTY PROGRAM

FOR

MAHINDRA & MAHINDRA LTD.

FES, KANDIVALI PLANT

BY

AMOD D. KANKEKAR

UNDER THE GUIDENCE

PROF: CYRUS GONDA

SUBMITTED TO

RIZVI INSTITUTE OF MANGEMENT STUDIES

In partial fulfilment of the requirement for the award of the degree of

PGDBM

(2009-2011)

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ACKOWLEDGEMENT

Acknowledging the debt is not easy to me as so many people. I will take this opportunity

in expressing the fact that this project report is the result of an unbelievable amount ofencouragement, cooperation, willing to help and moral support that I have received from

others.

It is beyond my literal and material means to express my heartfelt thanks to Dr. Kalim

Khan, Director of Rizvi Institute of Management for being the source of inspiration and

motivation to strive for excellence.

I express deep gratitude to Mr. Jungare, for giving me this golden opportunity to

undertake this project in their prestigious organization and providing a good environment

to work.

I am grateful to my project Guide Mr. Ajay Sakpal for their constant guidance,

encouragement and support to the completion of this project.

I am thankful to Prof. Cyrus Gonda faculty Guide for enlightening me on this subject

with his valuable guidance from time to time in completing this project.

I would like to thank the entire Customer Care department, for the most valuable help and

support extended during the project work.

Finally, once again I would like to thank all without whom I would have not been able to

do this project.

Amod Kankekar

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Sr.

No.

Topics Page No.

Acknowledgement

Executive Summary

Company Profile

FES, Kandivali plant

Tractor Industry

Customer Care Department

Mahindrashree Loyalty Program

Introduction

I. Defining Loyalty

II. Loyalty programs basics

III. Benefits of Loyalty Programs

IV. Loyalty Program costs

Comparative Analysis of Loyalty Programs

Designing a Loyalty program

Suggested features of a New Mahindrashree Loyalty Program

Scope for further research

Appendices

Sources

Executive Summary

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In his thought provoking book, The Loyalty Effect, author Frederick F. Reichheld writes

Loyalty is one of the great engines of business success.

Loyalty programs are initiated by businesses with two main goals. The primary goal for

most loyalty programs is the acquisition of information relating to their customers'spending habits, while the secondary goal is to actively cultivate loyalty amongst

customers to ensure they continue patronizing the business. While some companies do

reverse these priorities, the above hierarchy holds true for most.

Loyalty programs may offer benefits in a number of different ways. Many loyalty

programs offer a sustained discount (such as 10%) for a period of time - perhaps a year,

perhaps for the life of the business. Others offer a discount once certain criteria have been

met for example, a 20% discount on a single purchase once a customer has spent $200

at the business. Still others offer points which may then be redeemed for products which

may or may not be directly related to the business.

Loyalty cards are the most common form of loyalty programs found throughout the world

today. In the United States, almost seventy-five percent of consumers own at least one

loyalty card, with over a third of all shoppers owning two or more. Major supermarket

chains, such as Safeway and Albertsons, nearly all have loyalty cards, also known as

rewards cards or benefit cards. These supermarket loyalty programs usually operate by

offering a discount on certain products, usually marked throughout the store, to those who

have a loyalty card. In exchange for this discount, customers are giving the store access to

itemized receipts of their buying habits in the store, allowing the business to better cater

to their needs and build product purchasing and discounting to help retain their most

profitable customers.

Loyalty programs have gained in popularity immensely in the past fifteen years, in no

small part due to the development of a culture of entitlement, in which consumers feel

that they deserve special treatment. Businesses have capitalized on this when designing

their loyalty programs, often offering benefits that cost little, but carry with them an

assumed prestige, such as access to faster-moving lines or special parking spaces.

So I did this analysis with the aim to find that Is there any impact on the customers

loyalty by these loyalty programs. There were many other questions which were to be

answered such as What are the factors affecting customers loyalty, is loyalty greater

than loyalty card or vice versa, and Does loyalty programs really works etc. I did a

analysis to find relationship between loyalty programs and customer loyalty.

The outcomes of the research showed that there are many factors of a loyalty program

which has an impact on customer loyalty. These factors include discounts, special offers,

preferential treatment etc. Since customer loyalty is highly dependent on each buyers

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individual perception, hence these are some factors which have greater influence on

wider consumer base. Acceptability of a loyalty program by the consumer population has

been a major issue. Hence these factors if included in the loyalty program may increase

its degree of success.

It also depends on every sector and consumer buying structure as Mahindra Tractorlaunched MahindraShree Loyalty card for their customers to retain them during after sale

service, but every sector has different loyalty system which I have compared on same

parameters to find out on how to design best loyalty card.

Ultimately, the success of loyalty programs depends on how well the business uses the

data it gathers to further refine its policies and loyalty programs. Many businesses find

little profit in the use of loyalty programs, while others, such as eBay, attribute much of

their financial success to a well-executed use of such programs.

COMPANY PROFILE

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Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is

now a US $6.3 billion Indian multinational. It employs over 1,00,000 people across the

globe and enjoys a leadership position in utility vehicles, tractors and information

technology, with a significant and growing presence in financial services, tourism,

infrastructure development, trade and logistics. The Mahindra Group today is an

embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra group businesses are divided into:

1. Automotive Sector

2. Two Wheeler Sector

3. Farm Equipment Sector

4. Financial Services Sector

5. Mahindra Partners Division

6. Infrastructure Development Sector

7. Information Technology Sector

8. Systech Sector

9. After Market Sector

10. Specialty Business

Mahindra is the only Indian company among the top tractor brands in the world and has

made an entry in the two-wheeler segment, which will see the company emerge as a full-

range player with a presence in almost every segment of the automobile industry.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading

global business and information technology services company, Satyam Computer

Services. The company is now known as Mahindra Satyam.

Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, theonly tractor company worldwide to be bestowed this honour. It also holds the distinction

of being the only tractor company worldwide to win the Deming Prize. The Mahindra

groups Farm Equipment Sector (FES) is one of the top 10 industrial houses in India

which has a leading presence in several key sectors of the Indian Economy.

Introduction to Manufacturing Division

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The US $ 6.7 bn Mahindra groups FES is the only Indian company among the top three

brands in the world. FES has 6 state-of-the-art manufacturing plants (including 2 plants of

Swaraj) in India, 2 plants in China, 3 assembly plants in USA and 1 assembly plant in

Australia and a capacity to produce 1,50,00 tractors a year. It has its presence in around

25 countries across six continents with more than 1000 dealers world-wide.

The motto of FES is to usher prosperity; for its customers, dealers, employees, society

and all other stakeholders.

Mahindra Group has commenced the Sustainability Reporting from 2008. Today, M&M

group is amongst the few Indian companies to have an A+ GRI certification. As per the

commitments given by the Group under GRI framework, significant reduction in usage of

electricity, water and solid waste is called for. To make FES employees aware on the

tenants of sustainability, various initiatives like easily accessible information on

sustainability, setting up of permanent sustainability corners in all FES plants, observing

of energy conservation month etc. are undertaken.

FARM EQUIPMENT SECTOR

Overview:

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The Mahindra Group's Farm Equipment Sector (FES) has a significant presence across

six continents. It is among the top three tractor brands in the world, with its own state-of-

the-art plants in India, USA, China and Australia, and a capacity to produce 1, 50,000

tractors a year. The group has a network of 800 dealers worldwide.In the domestic

business, the Farm Equipment Sector has unparalleled market leadership for the last 25

years.It is the largest producer of tractors in India.Mahindra Gujarat Tractor, acquired by

Mahindra & Mahindra from the Government of Gujarat in 1999, is the oldest running

tractor unit in the country. The Mahindra Group has a 60% stake and the balance 40% is

with the Government of Gujarat.

Mahindra Agribusiness integrates the food chain by providing quality inputs and farm

solutions to post-harvest management of high value farm produce. The Company's core

business is to provide supply chain services to organized retail, to both export and

domestic markets for fresh fruits and vegetables as well as to the food processing

industry. Mahindra Agribusiness is the first Indian corporate body to be awarded

EUREGAP certificate as Primary Market Organization for Grapes.

Domestic Operations:

The Mahindra Group's Farm Equipment Sector is the largest producer of agricultural

tractors in India. In the domestic business, FES has had an unparalleled market leadership

for close to three decades now. With a 30% market share, the Bhoomiputra, Sarpanch and

Arjun brand of tractors makes the Groups Farm Equipment Sector present in all major

segments in India. In F-08, M&M FES increased its dominance of the domestic market

with the acquisition of Punjab Tractors Ltd. (PTL). With this acquisition, M&M FES now

commands nearly 40% of the domestic market. It achieved a major milestone in F-08when the cumulative sales of its tractors till date crossed the 13lakh mark.

The tractor industry in India is segmented by horsepower into the lower segment of 25

HP, mid-segment of 35 HP and higher segment of 45 HP and above. The companys

Farm Equipment Sector has a presence in all these segments across all states, which

designs, develops, manufactures and markets tractors for Indian and Overseas markets, is

the largest producer of tractors in India. Mahindra & Mahindra consolidated its position

as the leader of the Indian tractor industry when it acquired 63.3% stake in Punjab

Tractors Ltd. (PTL), the owner of the leading Swaraj brand of tractors. Mahindra &

Mahindra also owns 20 % stake in Swaraj Automotives Limited and 0.06 % stake inSwaraj Engines Limited. PTL is a strategic fit to the company, as it comes with its

strength of efficient design (strong R&D abilities) and the Brand Swaraj, which has a

reputation of being a reliable product. Benefits of this acquisition include advantages of

economies of scale, sourcing benefits and some amount of vendor rationalization.

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It has the largest customer base of 13, 00,000 satisfied customers and the deepest

distribution reach. The Sector has four manufacturing facilities in India, located in

Mumbai and Nagpur in Maharashtra, Rudrapur in Uttaranchal and Jaipur in Rajasthan.

The Farm Equipment Sector is has always been a process driven organization with a

strong focus on its quality systems. The Arjun Ultra-1 has now been transformed into a

versatile product which has demonstrated superlative performance both on and off field.

Mahindra Shaan a 25 HP multi-utility Tractor, which was launched the company in

2007, won the Outstanding Innovation Award from ASABE (American Society for

Agricultural and Biology Engineers), USA. The Total Quality Management (TQM)

movement in the sector has brought accolades like the most coveted Deming Application

Prize, making it the first tractor company in the world to win recognition of this stature.

Mahindra Gujarat Tractor, acquired by Mahindra & Mahindra from the Government of

Gujarat in 1999, is the oldest running tractor unit in the country. The Mahindra Group has

a 60% stake and the balance 40% is with the Government of Gujarat.

Mahindra Agribusiness integrates the food chain by providing quality inputs and farm

solutions to post-harvest management of high value farm produce. The Company's core

business is to provide supply chain services to organised retail, to both export and

domestic markets for fresh fruits and vegetables as well as to the food processing

industry. Mahindra Agribusiness is the first Indian corporate body to be awarded

EUREGAP certificate as Primary Market Organisation' for Grapes.

Mahindra Powerol is the brand name under which M&M engines are powering Diesel

Engines since its inception in 2001 and have already become the 1st choice of Telecom

majors like Reliance Infocomm, Airtel, Tata Tele, Hutch, Nokia, BSNL, MTNL etc tosupport their communication network spread across the country. Recently Mahindra

Powerol has won Frost & Sullivan Voice of Customer award for the most preferred brand

in telecom cell-sites segment. Besides Telecom, Mahindra Powerol DG sets are attracting

customers from a diverse cross-section of industries like SBI, ICICI Bank, IOCL, Essar

Oil to name a few.

Mahindra USA, a wholly owned subsidiary of M&M, has grown by leaps and bounds and

has reinforced its position in the Compact and Utility segment. It works hand in hand

with a network of hundreds of leading tractor dealers throughout the country to provideits

American customers complete product support and quality After Sales Service.

Mahindra Australia, based in Brisbane, offers a complete range of 2 Wheel Drive and 4

Wheel Drive Compact and Utility models with an option to have performance matched

attachments like Loaders and Mowers.

Mahindra China Tractors, a joint venture between the Jiangling Motors Company Group

and Mahindra & Mahindra, started operations in July 2005. It will see Mahindra &

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Mahindra further expanding the product range and developing more tractors for China as

well as other overseas markets.

MARKET SHARE

FES commands 41% of the domestic market share. (Mahindra brand: 29% and Swaraj

brand: 12%). FES has retained the Market Leadership for over 26 years.

COMPETITORS

John Deere

EICHER

Sonalika (International Tractors Ltd.)

New Holland

HMT

Escorts

ASSEMBLY PLANTS

Domestic (India)

1. Baroda ,Gujarat-Mahindra GujaratChappercheri - Swaraj plant

2. Jaipur, Rajasthan

3. Mumbai ,Maharashtra

4. Mohali ,Punjab

5. Nagpur, Maharashtra

6. Rudrapur, Uttaranchal

Mahindra Australia

http://en.wikipedia.org/wiki/Barodahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Mahindra_Gujarathttp://en.wikipedia.org/w/index.php?title=Chappercheri&action=edit&redlink=1http://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mohalihttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Rudrapurhttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Mahindra_Gujarathttp://en.wikipedia.org/w/index.php?title=Chappercheri&action=edit&redlink=1http://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mohalihttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Rudrapurhttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Baroda

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Brisbane,Australia

United States of America

1. Calhoun, Georgia

2. Houston ,Texas

3. Red Bluff, California

China

Jiangling, China

Africa

1. Chad

2. Gambia

3. Mali

4. Nigeria

KANDIVLI PLANT

http://en.wikipedia.org/wiki/Brisbanehttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Calhoun,_Georgiahttp://en.wikipedia.org/wiki/Houstonhttp://en.wikipedia.org/wiki/Texashttp://en.wikipedia.org/wiki/Red_Bluff,_Californiahttp://en.wikipedia.org/wiki/Chadhttp://en.wikipedia.org/wiki/Gambiahttp://en.wikipedia.org/wiki/Malihttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Brisbanehttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Calhoun,_Georgiahttp://en.wikipedia.org/wiki/Houstonhttp://en.wikipedia.org/wiki/Texashttp://en.wikipedia.org/wiki/Red_Bluff,_Californiahttp://en.wikipedia.org/wiki/Chadhttp://en.wikipedia.org/wiki/Gambiahttp://en.wikipedia.org/wiki/Malihttp://en.wikipedia.org/wiki/Nigeria

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Kandivali plant was set up in 1965.

Plot Area (Sq. Meters.) 147, 356

All the new tractor models (Compact, Cabin) are manufactured here, and the export

tractors are assembled in the Kandivali plant.

The plant also makes engines for diesel generators. The engines are supplied to the

contract manufacturers who then convert them into a DG set.

Kandivali is the main machining hub for FES, where all critical machining parts like

crank case, cylinder head, transmission case, crank shaft, camshaft, clutch housings and

all types of gears and shafts are made. It is the only plant

with heat treatment setup.

Product Range made

Tractor Assembly

Transmission Assembly

Engine Assembly

VTU Assembly

CV Assembly

Capacity

43 tractor assembly / (1 shift)

Management Structure

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President FES

Anjou Choudhari

International

Operations-

Deepak

Chibba

SBQ- Ashok

Sharma

COO-Gautam

Nagwekar

Accounts and

Finance-

Pradeep

Vaidya

HR-

Rajeshwar

Tripathi

Sales

Operations-

Avinash

Patankar

Manufacturin

g- Sudhir

Pathak

Customer

care- KH

Ramaswamy

PMMS-

Sanjeev Goyle

CDMM-

Subhash

Mago

PDRDS- Ram

Manrao

Powerol-Palniappan

Mahindra

Shubhlabh-

Vikram Puri

MGTL-

Subhash

Modak

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Tractors in India

As commercialization of agriculture grew in intensity in the mid to late 1800s the BritishRaj and the local legislatures and provinces began investing in agricultural developmentthrough support and establishment agricultural research farms and colleges and large

scale irrigation schemes yet the level of mechanization was low at the time ofindependence in 1947. The socialist oriented five year plans of the 1950s and 60saggressively promoted rural mechanization via joint ventures and tie-ups between localindustrialists and international tractor manufacturers. Despite this aggressiveness the firstthree decades after independence local production of 4-wheel tractors grew slowly. Yet,by the late 1980s tractor production was nearly 140,000 units per year and by the late1990s with production approaching 270,000 per year, India over-took the United States asthe world's largest producer of four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today. Despite these impressive numbers FAOstatistics estimate that of total agricultural area in India, less than 50% is undermechanized land preparation, indicating large opportunities still exist for agricultural

mechanization.

1945 to 1960

War surplus tractors and bulldozers were imported for land reclamation and cultivation inmid 1940's. In 1947 central and state tractor organizations were set up to develop andpromote the supply and use of tractors in agriculture and up to 1960, the demand was metentirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and37,000 by 1960.

1961 to 1970

Local production began in 1961 with five manufacturers producing a total of 880 unitsper year. By 1965 this had increased to over 5000 units per year and the total in use hadrisen to over 52,000. By 1970 annual production had exceeded 20,000 units with over146,000 units working in the country.

1971 to 1980

Six new manufacturers were established during this period although three companies(Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd.began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total

production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilitiesfor farmers continued to improve and the tractor market expanded rapidly with the total inuse passing the half million mark by 1980.

1981 to 1990

A further five manufacturers began production during this period but only one of thesesurvived in the increasingly competitive market place. Annual production exceeded

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75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2million. Then India - a net importer up to the mid-seventies - became an exporter in the1980s mainly to countries in Africa.

1991 to 1997

Since 1992, it has not been necessary to obtain an industrial license for tractormanufacture in India. By 1997 annual production exceeded 255,000 units and the nationaltractor population had passed the two million mark. India now emerged as one of theworld leaders in wheeled tractor production.

1997 to 1999

Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo,already well established in the motor industry, began tractor production in Pune. In Aprilof the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors

with matching equipment. The company is making a $US 75 million initial investment ina state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of35000 units per year. Larsen and Toubro have established a joint venture with JohnDeere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra andGreeves Ltd will produce same tractors under similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets Mahindra and Mahindra arealso developing a joint venture with Case for tractors in the 60-200 hp range. Total annualproduction was forecast to reach 300,000 during the following year.

1999 to Present

Facing market saturation in the traditional markets of the North West (Punjab, Haryana,and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 saleswent below 200,000. Manufacturers scrambled to push into eastern and southern Indiamarkets in an attempt to reverse the decline, and began exploring the potential foroverseas markets. Sales remained in a slump, and added to the market saturationproblems also came increased problems of "prestige" loan defaults, where farmers whowere not financially able took tractors in moves to increase their families prestige. Thereare also reported increased misuses of these loans for buying either lifestyle goods, or forsocial functions. Government and private banks have both tightened their lending for thissector adding to the industry and farmers woes. By 2004 a slight up tick in sales onceagain due to stronger and national and to some extent international markets. But by 2006

sales once again were down to 216,000 and now in 2007-08 have slid further to just over200,000.

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Customer Care Department

Role:

Customer Care maintains the network of Dealership. It is responsible for providing

technical support to field & improvement of the product through plant. It alsoprovides technical training to Dealership and M&M personnel. It ensures availability

of spare parts to Dealerships

Major Role:

Customer Satisfaction CSI

Events & Activities

Dealer Service Quality Index DSQI

Product support

Spare Parts

Warranty Training

Network/ Channel structure

M&M - HO

Area

Office1

Area

Office2

Area

Office3

Area Office - 32

Dealerships - 625

Franchisee - 170

MASP - 95

Deal

er1

Deal

er2

Deal

er3

Deal

er4

Distributor

/

Franchisee

MASP

*as of F10

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Organizational structure

VP - Customer Care

K. H. Ramaswamy

Field Team HO Team

Zonal Service Head

Area Customer Care Manager

Customer Care Manager

Service Officer

Technical Officer

4

10

10

52

12

COO

Gautam Nagwekar

Field Team HO Team

Product

Customer Connect

Warranty

Training

Spare Parts

MIS & Prop. Items

Zonal Service Head

Area Customer Care Manager

Customer Care Manager

Service Officer

Technical Officer

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Dealership is responsible for sales of tractors, servicing, spare parts an accessories of

Tractors and major role is to provide after sale service.

Events & Activities are done by Customer care for retaining customers

Installation Mahindra way

Swasth Tractor Swasth Chalak (STSC)

Customer Connect Toll free Helpline

Padyatra

Behavioral Training

Safe Tractor Safe Driver (STSD)

Doorstep Service/ Mobile Service

Service Clinic

Service Excellence

Installation of Tractor Mahindra way:

Process to make the customer understand his tractor better

Installation activity includes

Visiting customers residence/ site 7-10 days after tractor delivery Making him familiar with tractor operations, dos & don'ts, warranty,

schedule maintenance with the help of e-installer

Gifting him a farmer kit

Taking a family photograph

Giving a welcome card

Swasth Tractor Swasth Chalak:

Extension of Service Clinic

Done at Potential villages

Invitation to all Proprietary items manufacturers

Check-up of Tractors as well as Medical check-up of Customer and his

family

Done once per quarter per dealership

Key deliverables - Spares & Oil sale, No. of tractors & customers, Sales Inquiriesgenerated

Mahindra Customer Connect

Toll free helpline for Customers (end users)

Opportunity to recover customers both in Sales & in Service

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Available in Maharashtra, Gujarat, Tamilnadu, Karnataka, AndhraPradesh, Punjab, Rajasthan, Delhi

Padyatra:

Promoting Service

Attracting Post warranty Customers to Dealership workshop

All Customers to be contacted once in 3 yrs

Key deliverables Customers contacted, Customers visiting to workshop

Behavioral Training:

Training to Dealership Service team

Training on soft skills like Customer handling, Team work, Interaction with teammembers, Customer centricity, etc.

One day program arranged by CCM & TM

Doorstep/ Mobile Van Service:

Branded 2 Wheeler/ 4 Wheeler Vehicles run on pre-decided routes Servicing tractor at Customers field/ site of operation

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MahindraShree Loyalty Program

Earn points & rewards

For Mahindra Tractor Owners

MahindraShree is a loyalty program for measuring loyalty and rewards loyal customer. It

supports business development and improves dealer equity in market

System:

Dealership will be provided membership cards carrying unique numbers which they

distribute to the Mahindra tractor owners and they also given customer communication to

send SMS to head office for transaction and services they provided. System directly allotthe points on purchase and redeem after the message comes

Salient Features.

The Program Awards points to customers for continued ownership of MahindraTractors and Utilizing Mahindra dealerships for parts and service requirements.

All Mahindra Tractor Customers (Old/New) would be enrolled in the program atfree of cost.

Benefits to Dealer:

Increased Business

Customer Loyalty

Equity in Market

Easy to transact at Branches, Doorsteps, franchisees

History tracking

Leverage the right Customers

Benefits to Customer:

Discounts on purchases

Points on purchases/referrals

History tracking

Hassle free Migration

Avail special offers from time to time

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Entre Fee and Enrolment:

New tractor buyer can be directly the part of program and Dealership can identify the

satisfied existing Mahindra tractor owners and enroll them in the program. Entre fee forenrolment in program for new and old customers are free.

Points earned for

Mahindra Tractor Lubricants / Accessories, spares, labor

Routine Maintenance services and repairs as per Mahindra Tractor guidelines

Vehicle Trade in, referrals

On giving inquiries for New tractors

Customers can also get points on special occasions

Calculation of Points:

Description Rs.

Spare Parts 455

Lubricants and grease 1605

Labor 0

Total Amount 2060

5% on-spot discount on spare parts 23

Final amount payable by customer 2018

Amount to be put in SMS 2060

Loyalty points gained @ 2% 41

Rotal outflow for this transaction 64

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Total Points calculation during the Period

Sr.

No.

Description Ampount

spend

Points

earned

Points

Redeemed

Points

Balance

1 Labour Free service No. 1 3500 70 0 70

2 Labour Free service No. 2 3500 70 0 140

3 Labour Free service No. 3 3500 70 0 210

4 Labour Free service No. 4 4800 96 200 106

5 New Tractor inquiry 25 0 131

6 Labour Free service No. 5 3500 70 100 101

7 Labour Free service No. 6 3500 70 0 171

8 Labour Free service No. 7 3500 70 0 241

9 Enquiry conversion 50 0 291

10 Labour Free service No. 8 3500 70 0 361

11 Purchase of accessory 5000 100 0 461

12 Purchase of spares 2000 40 0 501

13 Paid service 3500 70 0 571

14 Purchase of Spare/ oil 3500 70 0 641

15 Paid service 3000 60 500 201

Validity

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The Program validity is lifetime from the date of first sale of the Mahindra Tractor. Points

accrued will be valid for lifetime for the purpose of redemption.

Redemption

1 Point = 1 Rupee

Customer can start redeeming his points from anytime he accrued

Observation of Mahindrashree Program:

1. Customers are not redeeming the points because reason behind this is that dealers

are not telling them benefit of the cards.2. As per my observation many customers has earned more than 200 points, which 1

point is equal to 1 rupee. There are customers who have earned more than 300points so we can conclude that customers are not aware about the points and theirvalue, otherwise they would have redeemed their points.

3. Company giving points to those customers who are coming anyways to them forservicing, spare parts etc so in this case loyalty card is not increasing the sale butit is giving more discounts which is no use.

4. Loyalty program should be like they retain the customers and try to attract newcustomers.

5. Dealers are not giving the respect to loyalty program; they are running the

program as company is just forced to run.

Observation of SMS sent by Dealers & Franchises:

1. Dealers are not sending the sms or they are not interested to convince thecustomers, there is more irregularity in sending sms so it is difficult to control onloyalty system.

2. Dealers send sms in the end of day.3. In each area office only 4-5 dealers or franchises are active others are not sending

sms

4. Company should not only conclude on sms came on system , they should verifywhether farmers are learned about the program or not and it is worth to give thepoints on purchase

5. Company is only depending on dealers to run the program.

Currently Mahindrashree program is running in following areas:

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1. Patna

2. Indore

3. Jalandhar

4. Vijayvada

5. Secunderabad

6. Tirupati

7. Pune

8. Nagpur

This is the SMS transaction of June month on day wise

INTRODUCTION

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Loyalty programs are everywhere in business. Customers interact with them multiple

times almost every daywhether shopping at a grocery store, buying a cup of coffee,

flying on an airline, staying at a hotel, or paying a cell phone bill. In other words,

companies have become convinced that it is possible to buy customers loyalty. Doloyalty programs really work, or are these companies just wasting their money? Can a

loyalty program change how people behave and get them to spend more money with that

company? Can loyalty programs reduce the likelihood that customers will move their

business to a competitor?

This report attempts to answer these questions and takes a detailed look at the current

environment for loyalty programs and the strategies businesses are using in implementing

these programs. In addition, the paper presents a series of best practices that can create

meaningful competitive advantages for companies that offer loyalty programs (that is,

host companies), their partners, and their customers.

DEFINING LOYALTY

Before examining how loyalty programs work, it is important to define exactly what is

meant by loyalty in the context of business development and retention.

Several broad definitions exist, including the following:

The commitment of customers to a particular brand or company

The extent to which your customers continue with key loyalty behavior when

competitors offer more attractive prices, products, and/or services

Faithful to any person or thing conceived of as deserving fidelity characterized by or

showing faithfulness

For this report, loyalty is defined as follows: Loyalty is a positive belief, generated over

the course of multiple interactions, in the value that a company and its products and/or

services provide, which leads to continued interactions and purchases over time.

Loyalty should not be confused with customer satisfaction. Although loyalty is built on

satisfaction, organizations can have satisfaction without loyalty. Customer satisfaction is

an opinion measure about company performance and how customers feel their needs

were met in past interactions or by past purchases, whereas customer loyalty is a results

measure that includes expectations of future behavior.

LOYALTY PROGRAM BASICS

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Companies typically have several goals when launching loyalty programs, all of which

are focused on generating greater profits from the programs members.

These goals include

Improving knowledge of the customer

Leveraging that knowledge to increase the sales of undersold and/or highly profitable

products/services

Increasing customer retention and purchase frequency

The most common type of loyalty program begins when a customer enrolls. From that

point forward, the organization accurately tracks information about that member,

captures the members purchases, credits points to the member based on the rules stored

in a loyalty engine, categorizes the member in tiers or groups based on the members

value to the organization, and enables the member to redeem points for products orservices when various point levels are attained. The specific types of behavior that are

tracked and rewarded are unique to each industry/company and are typically linked to the

organizations profitability drivers.

BENEFITS OF LOYALTY PROGRAMS

Greater Customer Knowledge

A loyalty program enables a company to gain detailed knowledge about its customer basewith the customers consent; customers actually want to provide transaction and detailed

profile information to ensure that they receive the full benefits of being a member of the

program. In some market segmentssuch as business-to-businesscompanies already

possess significant knowledge about their customers. As a result, these firms will not see

customer knowledge as an important component of a loyalty programs value. However,

for most business-to-consumer companies, gaining this level of intimate customer

knowledge is a critical benefit of a loyalty program. In such B2C industries, loyalty

programs enable companies to match their faceless customer purchase data (what was

bought, when, at what store) with specific customer profile information, which can then

be used to create targeted marketing promotions or redesign services around high-valuecustomers needs.

Increased Customer Retention

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A well-honed loyalty program improves customer retention rates, by increasing a

members switching costs, which are costs a member would bear in order to switch to a

competing provider. These costs can include decreased service and the time and resources

required to build a new relationship. The higher a members switching costs, the more

likely that member is to remain loyal.

Most loyalty programs today do not create high enough switching costs for members. For

example, airline industry frequent-flier programs all provide virtually the same product (a

seat, perhaps with a few extra inches of legroom) and the same membership benefits

(separate customer service number, priority boarding, priority upgrades, and bonus

miles). If gold-tier members on one airline want to switch to a competitor because the

competitor just added nonstop service on their favorite routes, all they have to do is fax

the competitor their last frequent-flier statement, and they will immediately be made gold

members of the competitors frequent-flier program. Because the products and services

these two airlines and their loyalty programs provide are virtually identical, the members

can switch to a competing carrier at virtually no cost to themselves.

However, if the first loyalty program offered a unique set of benefits that the competing

carrier could not easily duplicate, it would be much less tempting for members to switch.

Companies use their loyalty programs to create these switching costs, by

Leveraging in-depth member profile and transaction data to create unique offers and

product/services that a competitor, which does not know as much about the member,

cannot match

Providing targeted service consistently across all channels

By using the personalized data provided by their loyalty program, companies can create a

win-win relationship with their members that cannot easily be replicated by their

competitors.

Differentiated Service and Brand Equity

Most companies do not want to compete on price. Even those whose business models are

initially predicated upon providing the lowest-cost service (for example,

low-cost carriers such as Southwest Airlines and JetBlue Airways) often find that they

must focus on providing value beyond price as they mature, their costs rise, and new

upstarts beat them on price.

In addition, for companies that have not traditionally competed on price but suddenly find

that their products are becoming commodities, brand equity is often determined by the

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additional value these companies can provide beyond products alone. Today, companies

in a number of industries are in this position. Examples include airlines that have reduced

their offering to basically a seat with no food or frills, big box retail stores that have

depersonalized the shopping experience, and wireless firms whose networks have now

reached parity.

Companies can create this additional value by moving away from generic, one product-

meets-all-requirement products to targeted products and services that address their

customers unique needs. A loyalty program provides this detailed information on

transactions, demographics, and personal preferences required to successfully identify the

unique groups among a companys customer base and then design products or services

that meet those segmented members needs. For example, retailers can use their loyalty

data to ensure that the products desired by high-value customers are always in stock, are

easy to find and reach, and are prominently displayed.

It is critical to note that customers are typically willing to pay for those products andservices that do a better job of meeting their underserved needs. For example, 83 percent

of hotel guests say that personalized service and attention to their needs provides value. It

is value, rather than price, that defines a good deal for these customers. Brand equity,

which is achieved by providing highly valued, well differentiated products and services,

is the cornerstone of loyalty. It is the additional value that customers believe a company

provides relative to its competitors that encourages loyalty to the host company and

makes customers potentially willing to pay more for its products and services.

Improved Profitability

All of the benefits discussed to this point lead to a loyalty programs key goal and most

important metric of success: improved profitability. Greater profits are a result of

Profitable customer retention

Higher prices paid for unique products/services

Increased average purchase size

Decreased marketing and systems costs

Decreased unsold expired inventory

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Increasing customer retention significantly improves a companys profitability.

According to Frederick Reichheld of Bain & Company, a 5 percent increase in customer

retention results in a 25 percent to 100 percent increase in profitability.

There are several sources of these additional profits, which Reichheld breaks down into

price premium, referrals, cost savings, revenue growth, and acquisition cost.

LOYALTY PROGRAM COSTS

Despite their many benefits, loyalty programs can be expensive to develop and maintain.The costs associated with loyalty programs generally fall into two categories: program

costs and system costs.

Program costs are nontechnical expenses related to administering the programs points,

rewards, and services.

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System costs are those invested in the technical infrastructure to support the loyalty

program.

Although some costs are directly attributable to the programfor example, loyalty

program management softwarethere are other costs a company would likely incur even

without a loyalty program, such as marketing software and hosting a Web site.

However, even these costs can be increased due to factors such as integrating the

marketing software with loyalty software or providing additional loyalty-related

functionality on the company Web site.

A companys program costs will vary significantly, depending on the rewards that are

provided. For example, airlines and hotels, which are high-fixed-cost, low variable-cost

businesses, will have lower program costs. This is because airlines can allow members to

use points to redeem only those seats that would otherwise go unsold. The cost to fly

additional people who purchased their tickets with points is trivial. Further, although

members can use airline points to purchase products with many of the airlines partners

(hotels, car rental agencies, and selected retailers), people place such a high value on

airline seats that nonairline flight redemptions account for only approximately 3 percent

of all airline loyalty program redemptions.

Other companies, such as retailers, in which every product redeemed for points must be

paid for by the company with cash, will have higher program costs. For example,

depending upon the programs rewards and generosity, a retailers loyalty program can

cost between 2 percent and 10 percent of a customers total expenditures.

CURRENT LOYALTY PROGRAM LANDSCAPE

The first mileage-based loyalty program was launched by American Airlines more than

23 years ago (May 1981). Today, loyalty programs are ubiquitous. There are more than

one billion people worldwide enrolled in loyalty programs, and in some industries such as

airlines and hotels, loyalty programs have become one of the most critical means by

which companies manage their customer relationships.

More than 125 million people worldwide are enrolled in airline loyalty programs.

About 76 percent of all U.S. grocery retailers with 50 or more stores have a loyalty

program.

Almost 50 percent of the top U.K. retailers have loyalty programs.

About 75 percent of Americans belong to at least one loyalty program.

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Shoppers stop claims more than 60% of sales from loyalty members.

Loyalty programs are considered to be one of the most effective relationship marketing

tools across the industry. Loyalty programs are offered not only by the MBOs but it is

also offered by saloons, casinos, hypermarkets, Car dealers etc.

What makes successful loyalty strategy?

Remember, you want your strategy to be strong enough to pull in the swinging voters -

the people who dont really care where they buy from, or feel equally loyal to two or

more outlets. There are a number of factors that determine the success or failure of any

loyalty strategy.

Offer: Success is reliant on how strong your offer is. For example, every 6th meal free, or

every 6th haircut free will probably be strong enough to keep people coming back. On theother hand, 10% off your 10th purchase is probably not. It needs to be appealing enough

for people to say wow, thats a good deal, Ill remember that.

Satisfaction: People need to be happy with your service to begin with. If they were not

satisfied with their first interaction with you, its unlikely theyll come back anyway. It

sounds obvious, but its a reminder to get the little things right before worrying about a

loyalty campaign.

Convenience: If people find it easy to keep the loyalty card handy, there is a better chance

they will use it. If, for example, its too big to fit in their wallet, theyll probably throw it

away. `

Promotion & Exposure: If you treat your loyalty card like its nothing special, your

customers will too. Ask them every time they buy, do you have your loyalty card

handy? Make sure that every person who comes in knows that its available, and is

offered one.

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Comparative Analysis of Customer Loyalty program in different sector:

I have studied the customer loyalty program of different companies in different industries

according the same parameter. Industries are as follows:

Automotive Industry

Retail Apparel Industry

Retail Food Industry

Aviation industry

Petroleum Industry

Hospitality industry

Companies and their Loyalty Programs are as follows:

Industry Company Loyalty Program

Automobile 4-wheeler Ford Car Gainz

Automobile 4-wheeler Maruti Suzuki Maruti Suzuki Autocard

Automobile 2-wheeler Hero Honda GoodLife

Passport

Petroleum Indian Oil Fleet card

Retail Apparel Shoppers Stop First Citizen

Retail Apparel Pantaloon Green Card

Retail Food Big Bazar ICICI Big Bazar Credit

Card

Retail Food Reliance Fresh Reliance One

Hospitality Accor Hotel A/club

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Loyalty Programs are compared on parameters like:

System to run program

Earning of points Tiers and up gradation of Tiers

1 point value

Redemption of points

Benefits & Features of program

Entre Fee

Validity

Business Partners and their Benefits

Add On

Issues of Loyalty Program

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Validity

The Program validity is 5 years from the date of first sale of the Ford vehicle. Points

accrued will be valid for 1 year beyond this period for the purpose of redemption.

Privilege Points

There are three kinds of privilege points

Bonus Points

Service Points

Loyalty Points

Bonus Points

For availing the prescribed Periodic Maintenance Service (PMS).

50 pts for each PMS in 1stYear & 100 points for each service in subsequent years.

Service Points

For servicing the car at the Ford Dealership.

1 point is earned for every Rs 100 spent on spares/labor/ford gear.

50 pts Purchase of 1 Year Extended Warranty.

100 Pts Purchase of 2 Year Extended Warranty.

Loyalty Points

Members earn loyalty points for...

Continued ownership

To earn loyalty bonus a customer needs to perform all PMS mentioned in theowners manual with an exception of missing one PMS in a year.Example- Diesel needs to perform 3 PMS in a year to earn his loyalty points for

that particular year.

Loyalty points can ONLY be redeemed on the exchange of a Ford vehicle.

Note :{ Loyalty + Service+ Bonus} points can be redeemed by a customer when he

trades-in his existing Ford car for a new Ford car

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Redemption:

1 Point = 1 Rupee

Customer can start redeeming his service and bonus points when it reaches 500points in his account & he is a member of CG for 6 months

Post this he can redeem in multiples of 5 with a minimum of Rs.100.

Loyalty points can be redeemed only in exchange for a Ford vehicle.

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Hero Honda Automobiles

Hero Honda Goodlife Program

The Hero Honda GoodLife Program is members very own passport to the good things of

life. It brings an easy to use privilege card that offers a host of special rewards and

benefits. Providing with fabulous returns on their spends, it is surely the most convenient

way to complement your good life.

Points earning and redemption:

Make the most of Hero Honda GoodLife Program membership card. Every time when

member visit an authorized outlet, They get an opportunity to earn points. Accumulate

points to reach milestones and at every milestone, they can use their card to redeem

points for a range of exciting rewards and privileges.

Earning and Redeeming Reward Points

card is important and it is unique. Member should carry their card during all their visits to

Hero Honda dealerships or service centres. They will need their card to earn reward

points on their spends, which they can accumulate to reach the program milestones. To

help you keep track of their points, they will be provided a Points Statement after every

transaction. When they reach milestone, they present their card and can collect milestone

gift.

1 rupee spent is equal to 1 point they earn.

Fees and Validity:

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Three years membership and one year insurance cover pay a nominal membership fee of

Rs. 150

Three years membership and 3 years insurance cover pay Rs. 250.

World of Rewards:

WINNER OF THE MONTH:

All members enrolled in a month get a chance ot participate in an exciting lucky draw and

4 lucky winners get a chance to win a Hero Honda Splendor+ bike.

REFERRAL POINTS:

Earn additional 3000 points on referring a Hero Honda two-wheeler to friends-n-family

members and 6000 points on upgrading their own two-wheeler.

FIRST TRANSACTION BENEFIT

Member can earn the First Transaction Gift on their first program transaction through

the card and also earn 500 points as first transaction benefit.

DISCOUNT ON SPARES & ACCESSORIES

Start receiving a special discount of 5% on the purchase of spares and

accessories on their successful enrollment and free wash coupon (with limited validity

period).

POINTS EARNED ON MONEY SPENT

Accumulate points on the purchase of service, spares and accessories at an authorized

Hero Honda dealership or service centre. Each rupee spent gets translated into one point

earned.

http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23

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FREE RIDERS PERSONAL INSURANCE

Get a free Personal Accidental Insurance worth Rs. 1 lakh on their successful enrolment.

GO GREEN

Get 50 Green Reward points for every Pollution Under Control check of vehicle. Present

the Pollution Under Control certificate to the dealer and earn points.

SERVICE BONUS

Get 100 points per service and 500 as continuity bonus on every 6th regular service

BONUS POINTS ON BIRTHDAY

Earn bonus double points for every transaction done on birthday

and get special greetings too.

SPECIAL VALUE OFFERS

Exclusive invitees to events and special value offers from partners.

Get to know about the latest happenings with special Hero Honda GoodLife Program

newsletter, Suhana Safar

Invitation to exclusive service camps for Hero Honda Goodlife members.

Redeem points, take home your gifts

as you continue your journey with us, you can redeem your points for fabulous gifts.

http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23http://www.herohondagoodlife.com/dealer_rewards.aspx#%23

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Maruti Suzuki Automobiles

Maruti Suzuki Loyalty program

Maruti Suzuki Loyalty card is a unique loyalty reward program designed exclusively for

the owners of Maruti Suzuki Car. The program is loaded with powerful features and

offers the best services along with exciting rewards and privileges. With this program

members not only get rewarded on their spends but also on the contribution they make

towards the ever increasing sales of Maruti Suzuki.

So next time whenever members refer their friends/relatives to buy a new Maruti Car or

get their car serviced at Maruti Suzuki network they can use Maruti Suzuki Loyalty Card

and gets rewarded with high value Auto points

(One Auto point equals to 1 rupee in value)

This is not all. To maximize the benefits on the Loyalty Card, Maruti has partnered with

State Bank of India- Indias leading and most trusted bank. Maruti & SBI are both

leading brands, have consistently spelt trust and quality in all their product offerings for

the Indian consumer

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There is a card for everyone, just apply for the one of your choice.

Features ofMaruti Suzuki Autocard

Joining bonus of 100 Auto Points

3% Auto points on every transaction at Maruti network

Complimentary gift vouchers.

100 Auto Points on referring a person to learn driving at Maruti Drving School.

Features ofSBI Maruti card

Joining bonus of 200 Auto Points

Complimentary gift vouchers

4 Auto Points on every Rs 100 spend at Maruti network

Fuel surcharge waver of 2.5 %

Every time members use their SBI Maruti Card for shopping/dining they would berewarded with 1 Auto Point on every Rs 125 spends.

Exclusive Benefits:

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Member can use the Autopoints earned through regular usage while exchanging your car.

You also get exchange loyalty bonus of 3000 Auto Points. This would be over and above

all other discounts available at the time of car exchange.

Joining Fee- Rs 500

Annual Fee- Rs 500

Renewal Fee- Rs 500

If member spend Rs. 2000 or more in first 60 days of card issuance then the first years fee

would get reversed.

If member spend Rs. 50,000 or more in a year, then the subsequent years fee would get

reversed.

Maruti Suzuki AutoCard:

Member can redeem their Auto Points at Maruti Suzuki dealerships once they have

earned 300 Auto Points

One time fee of Rs 300/-

Indian Oils

Fleet Card Loyalty Program

Fleet card

Each one of members Fleet Card is a smart card, which can be used by the card holder

(driver of the vehicle) to make purchases of fuel/ lubricants at designated retail outlets of

IndianOil.

Activation

Before using the feet card to make any purchases, member need to activate their card. To

activate their card, they can visit the nearest designated retail outlet of IndianOil and

present their card for changing the default PIN (0000) to a new PIN (any 4-digit number).

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Fleet Control Card

This is a card to which all member fleet cards are linked. This card is not meant to be

inserted in the smart card terminal for any transaction. However, the Fleet Control Card

Number can be used for the following transactions.

CCMS Recharge

Members use Fleet Control Card Number & Control PIN to recharge their CCMS

Account by making a lump sum cash deposit at a any designated retail outlet. Thereafter

money available in the CCMS A/c can be used for reloading multiple fleet cards through

CCMS Reload, at any of the designated retail entries Accumulate XTRA Points: All

transactions on their vehicle-specific fleet cards are linked to the Fleet Control Card;

therefore, all XTRA Points earned by each of fleet cards accumulate against this card.

XTRA Points Redemption at a Retail Outlet

Member use their Control Card Number & Control PIN on a smart card terminal at a

designated Retail Outlet of IndianOil for instant redemption of XTRA Points for fuel and

lubes. You can also submit your request for redemption of any other reward item from the

rewards Catalogue on the smart card terminal.

Redemption requests can also be submitted by filling a redemption form or there an

online request on XTAPOWER website.

The web User ID and Password will allow you to access web-based services of

XTRAPOWER such as viewing transactions on your fleet cards, vehicle tracking, CCMS

& card wise balance, XTRA Points' balance, redemption of XTRA Points etc.

Note In case of credit variant of XTRAPOWER card, the prepaid pouch of the card must

have the required amount so as to avail of online tracking facility

XTRAPOWER is one-of-a-kind fleet card program of IndianOil, which gives you XTRA

convenience, XTRA security and XTRA opportunity to earn truckloads of rewards. It is a

tailor-made program for Fleet Owners, Operators & Corporates as well.

With XTRAPOWER Fleet Card members now have an easy, convenient and rewarding

way to drive, monitor and control their entire fleet. It facilitates cashless fuel purchase

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and gives them systematic record of transactions through the card. It is a powerful and

unique fleet management tool for an efficient and cost-conscious fleet owner.

Based on the smart card technology, the XTRAPOWER card gives:

Payment convenience-both prepaid and credit options. Detailed fleet management reports.

Facility to track each vehicle

Personal Accident Insurance Cover and Medi-claim for fleet owner, driver, co-driver and helper.

Attractive rewards on purchase of fuel & lubricants through the Card

Opportunity for earning additional rewards on purchase of J.K. Tyre and ExideBattery*

The XTRAPOWER smart card is personalized with details like Card Number, Card

Member's Name, Customer ID, Vehicle Number and Expiry Date printed on the card.

There are two variants of XTRAPOWER fleet card Prepaid & Credit. On prepaid cards,

pre-load as much money as you require. Within prescribed limit the pre-loading facility

has been made available at designated Retail Outlets of Indian Oil. You can also deposit

the desired amount in Central Cash Management System (CCMS) through designated of

HDFC bank.*

On the credit variant, cards are sent with credit limit as approved by the credit partner

Sundaram Finance Limited (Shortly to be made available through other banks).

Freedom:

The XTRAPOWER fleet cards are accepted at designated Retail Outlets of IndianOil,

where "Quality & Quantity" of fuels is assured. Every time when need to tank up fuel,

drive into one of these IndianOil Retail Outlets and use the fleet card to purchase Auto

fuel and lubricants.

Control:

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XTRAPOWER gives you full control on the amount you load on your prepaid cards from

wherever you are. For example, you can make payments in Mumbai and reload your Fleet

Cards in Chennai. In case of credit variant, there is a pre-approved daily limit on the card.

For every transaction, charge slip would be printed (shown alongside) for your records.

This slip will indicate the date, time and location of the transaction, card number, productpurchased, value of purchase, card balance after transaction and odometer reading of the

vehicle (if provided by the driver) etc. One copy of the transaction slip is given to the

driver of the vehicle. With the help of these slips they can keep track of their auto fuel/

lubes expenses and routes traveled by each of their fleet vehicles.

Tracking:

Member can keep track of their fleet by logging on to website www.iocxtrapower.com.

As XTRAPOWER member can view the tracking report for vehicles as well as

transactions made on fleet cards for any period.

Xtra Points:

Member earn XTRA Points every time they use XTRAPOWER fleet card(s) for makingpurchases of auto fuels & lubricants, which on accumulation, can be redeemed for fuel,

lubricants and many more exciting gifts.

Xtra Protection:

Now enjoy XTRA Protection through XTRAPOWER insurance cover for Personal

Accident, Medi-claim and lost card liability. The Insurance Cover is provided to the Card

member as well as to the vehicle crew.

The lost card liability insurance protects from any liability as a result of card loss or cardtheft.

Xtra Benefits:

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In addition to the key benefits, XTRAPOWER provides you with value-added benefit of

discounts on fleet-related products e.g. Tyres, spares, services etc. through alliance

partnerships developed with various manufacturers. (Currently available on JK Tyres

only)

XTRAPOWER program offers card-insert based basic truck tracking at no extra cost.

It also offers "Online Tracking" facility (at nominal cost), which would vastly improve

fleet utilization.

XTRAPOWER card members will enjoy the power of IndianOil's nation-wide network of

retail sales points, supported by IndianOil's team of Sales Officers and Fleet Managers.

Consolidated Reports:

The members would receive consolidated monthly statement detailing fuel/lubes

purchases by each vehicle, XTRA Points earned etc. If the driver has provided the

odometer reading of the vehicle at the time of transaction, the Card member can also

ascertain the mileage performance of the vehicle.

So sit back and enjoy the XTRAPOWER's XTRA Control!

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Shoppers Stop First Citizen Loyalty Program

Objective:

Ensure stickiness by increasing rewards to customers on every purchase they make at the

shop.

Eligibility:

Any customer who purchase goods worth a predetermined amount.

Modalities:

Earn points which can be redeemed against their bill amount. Three tiers with increasing value per point at each level.

Members are given special sale previews, updates, exclusive cash counter &unique focused offer.

Earning of points:

Customers earn points on purchase of apparels in Shoppers Stop.

Customers present their Shoppers stop First Citizen Card to the cashier before making the

payment and ensure that points are get credited to their account.

If points get credited then first citizen card number will come on cash memo

Redemption of Reward Points:

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Each Reward Point is Rs.0.70.

For redeeming the reward points reward Points Voucher is being used.

Rewards points can be accumulated or exchanged at the time of billing or payment.

Reward Points can be used to buy anything within the store except certain merchandise.

Reward points should be redeemed within the First Citizenship validity period.

Tracking of Reward points:

Reward Points can be checked on www.corporate.shopperstop.com or for convenience

points also appear on cash receipt.

Validity:

First Citizenship is valid for a period of 2 years. After the period points get expired.

Tiers:

http://www.corporate.shopperstop.com/http://www.corporate.shopperstop.com/

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Up gradation of Tiers:

Classic Moment:

Benefits at a glance

Benifits Classic moments Silver Edge Golden Glow

First Citizenship Rs.200 - -

First Citizen

reward points

1 reward Point for

every purchase of

Rs.100

1 reward Point for

every purchase of

Rs.50

1 reward Point for

every purchase of

Rs.34

Extra Reward

points on preferred

brands

- 1% 2%

Associate card Yes (Rs.100) Yes (up to 2:

Rs.100)

Yes 2 free

(3rd

: Rs.100)

Regular updates Yes Yes Yes

Exclusive cash

counters

Yes Yes Exclusive Golden

Glow cash Counter

Free parking Yes Yes Yes

Valet parking Yes Yes Yes

Free First update - - Yes

Home Delivery of

Alterations

- - Yes

Out-store Offers Yes Yes Yes

Exclusive

Previews

merchandise &

Sale

Yes Yes Yes

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Member cannot renew the Classic Moment Card, They have to upgrade or cease being a

Shoppers Stop First Citizen.

Silver Edge:

Purchase worth Rs.10, 000 in Shoppers Stop for validity period for being member of

Silver Edge card member. Renew the Silver Edge card customer has to do purchase of

Rs.10, 000 in validity period.

Golden Glow:

For up grading from Silver Edge to Golden Glow, customer has to purchase of Rs.40, 000

in Shopper stop for validity period. Renew the Silver Edge card customer has to dopurchase of Rs.40, 000 in validity period.

Results:

Has generated a database of over 4 lakh members who contribute to nearly 50% of the

total sales of Shoppers Stop

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Pantaloon Retail India Limited

Green Card is your passport to a whole new world of exclusive benefits and privileges.

Instant discounts* for every time you shop at Pantaloons.

Exclusive shopping days to get hold of latest merchandise.

Regular updates on collections and promos via catalogues, sms and email.

Special invites to the most happening events.

Extended exchange periods and complimentary drops for alterations.

Exclusive billing counters and much more.

*Categories valid for Green Card Discounts:

Apparel, perfumes & cosmetics, toys, Bluesky, aLL, Depot, Planet Sports & accessories.

Valid on categories within Pantaloons only.

Also valid at standalone Bluesky and aLL stores.

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Four New Features

Now you can upgrade to even higher privileges by becoming a 7 star member.

The new improved Green Card has a 7 star upgrade status, which will offer higher

privileges to this exclusive group of members.

1 Star Members

Gift Voucher worth Rs. 200 on enrolment

3 Star Members

5% discount on every purchase

5 Star Members

An exclusive 7.5% discount on every purchase

7 Star MembersA whopping 10% discount on every purchase

To avail this discount swipes the card all the time of purchase.

Most recent purchase helps to upgrade the card

Upgrade is not dependent on the date of enrolment or calender year. Upgrade on the basis

of your purchases immediately preceding 12 months of current shopping date.

One card, any store

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Card can be swipe on any of the billing counters to enjoy instant benefits. Online system

ensures that derive all privileges at any Pantaloons store.

How the Green Card works?

Customer can present the Green Card whenever they purchase from Pantaloons to avail

discounts and offers.

Membership & 12 month Purchase-based Upgrading System

Three Star Card - Upgrade to a 3 star status by shopping for Rs. 8000/- immediately

preceding 12 months of current shopping date.

Five Star card - Upgrade to a 5 star status by shopping for Rs. 20000/- immediately

preceding 12 months of current shopping date.

Seven Star - Upgrade to a 7 star status by shopping for Rs. 40000/- immediately

preceding 12 months of current shopping date.

12 month Purchase-based Upgrading System

When customer shops at Pantaloons and their total purchase (including that day) in the

previous 12 months totals to the criteria value of the next tier, they upgrade to the next

status.

1 Star card is valid for a period of 2 years from the date of enrolment.

3, 5 and 7 star cards are valid for a period of one year from the date of upgrade.

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Membership Renewal

Purchase worth Rs. 8000 within 2 years of card issue date and retain a 1 star status

Purchase worth Rs. 8000 within 1 year of card issue date and retain a 3 star status

Purchase worth Rs. 20000 within 1 year of card issue date and retain a 5 star status

Purchase worth Rs. 40000 within 1 year of card issue date and retain a 7 star status

Green Card Benefits

Green Add on Cards

Green Card benefits can be shared with members of family. Customer can apply for an

Add-on card. Their family also be entitled to direct discount and other privileges that

Pantaloon have to offer. A 1 and 3 star member is entitled to have 1 add-on card.

However a 5 and 7 star member is entitled to have 2 add-on cards.

Green Days

Exclusive Green Card shopping day give a preview of End Of Season Sale, so that

members are first to get hold of the latest merchandise.

Green Channel

Special billing counter is open to all Green Card members during End of Season sale. So

they can avoid the rush at the regular billing counter.

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Green Offers & Promotions

These are exclusive shopping offers sent to members on a regular basis. Just flash Green

Card and claim the special offers and promotions. At times, offers open to all customers

are further enhanced for our esteemed Green Card members.

Green Service Desk

For all members queries, information and services, contact the Green Service Desk at any

Pantaloon Store.

Green Exchange

Members can exchange their products within 60 days of purchase. (90 days for Seven

Star members)

Green Drop

Busy schedule may not permit customers to collect their alterations or purchases. So

members can ask for the Green Drop Service and purchases will be home-delivered to

members. This service is exclusively available to the 7 star members all round the year

and also to the 5 star members except for end of season sale period.

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Privileges at a Glance

Business Partners

Green-JetPrivilege

Pantaloons and Jet Airways come together to bring dual benefits.

In the first partnership of its kind in retail, Pantaloons Green Card partners with Jet

Airways JetPrivilege to offer dual benefits to members. With this unique partnership,

Benefits 7 star 5 star 3 star 1 star

Discounts on all

subsequent Purchases10% 7.5% 5%

Gift Voucherworth Rs. 200/- on

new enrolment

Upgrade EnrolmentUpgrade

KitUpgrade Kit Upgrade Kit Welcome Kit

Add-on Card to

Family Members2 2 1 1

End of Season SalePreview

Yes Yes Yes Yes

Green Channel Yes Yes Yes Yes

Green Drop

Yes -

around the

year

Yes - around

the year except

End of Season

Sale

No No

Green Exchange 90 days 60 days 60 days 60 days

Green Service Desk Yes Yes Yes Yes

Green offers &

PromotionsYes Yes Yes Yes

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JetPrivilege Members will be able to enjoy benefits from two loyalty programmes i.e.

earn JPMiles and Enjoy Green Card discounts for shopping at Pantaloons.

Tier mapping and Benefits of the partnership

JetPrivilege

Tier

Green

Card Tier

Awarded

Minimum Purchase

Criteria for existing

JetPrivilege members

JPMiles

for every

Rs100

spent

Green Card

discounts/benefit

s

Platinum 7 Star Waived off 5 10%

Gold 5 Star Waived off 4 7.50%

Silver 3 Star Waived off 3 5%

BluePlus/Blue 1 Star Shop for any Value 2

Gift Voucher

worth Rs. 200 on

enrolment

How the Green cards will be issued?

JetPrivilege tier mapping to the Green Card tier is a one time activity based on the

JetPrivilege membership status and postal address in the JetPrivilege records as on

September 02, 2009.

Green Card Tier assignment prior to partnership launch:

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If a JetPrivilege member is an existing Pantaloons Green Card member prior to the

partnership launch, he/she will be sent a Green Card in accordance with the higher tier

that he holds in any of the two programmes. The validity of the Green card will be

extended by another 12 months from the date of issuance.

Only JetPrivilege Platinum/Gold/Silver members who have been JetPrivilege memberson or prior to September 2, 2009 will be auto enrolled and upgraded in the Green Card

Programme in accordance with their JetPrivilege membership level.

Eligible JetPrivilege Platinum members will receive a pre-embossed permanent 7 Star

Green card. Eligible JetPrivilege Gold, Silver members will receive a temporary peel off

5/3 Star Green Cards, respectively, based on the tier mapping mentioned above. The

permanent Green card will be sent, post the initial shopping at any of the participating

Pantaloons outlets. The Green Card and JetPrivilege membership accounts have been

linked to ensure auto-credit of JPMiles

JetPrivilege Blue Plus/Blue members will need to shop at Pantaloons and pay Rs. 50 to

enrol in the Green Card programme

Green Card Tier assignment post partnership launch:

JetPrivilege Platinum/Gold/Silver Members who have enrolled in the JetPrivilege

program post this partnership launch, will need to complete the regular Green Card

enrolment criteria (shop at Pantaloons and pay Rs. 50) to be eligible for Green Card

membership.

JetPrivilege Blue Plus/Blue Members and who have enrolled/upgraded to JetPrivilege

Platinum/Gold/ Silver tier in the JetPrivilege Programme post September 02, 2009, will

need to shop and pay Rs. 50 to enroll in the Green Card program and will be given a 1

Star Green Card. To avail of this benefit, member must present their valid JetPrivilege

membership card at the Green Card Help Desk and quote their JetPrivilege number on the

enrolment form.

Newly enrolled members as well as existing JetPrivilege members should email theirJetPrivilege membership number and GC account number to

greenservice@futuregroup.in to enable linking of the two accounts and for auto credit of

JPMiles

Terms and Conditions :

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Members must present their Green Card to the Cashier for swiping at the time of

purchase, to avail of GC discounts, JPMiles and other benefits at Pantaloons.

Green card discounts are valid on applicable categories within Pantaloons stores only.

This partnership & its offers are applicable only for JetPrivilege Platinum members

residing across India and Gold/Silver/Blue Plus/Blue members residing in cities where

Pantaloons has stores. JetPrivilege Members addresses considered will be the postal

address as recorded in their JetPrivilege account.

Upgrade/Downgrade: Once a JetPrivilege Member is part of the Green Card programme,

his membership level will upgrade/downgrade as per Green Card programme criteria

only, irrespective of whether he upgrades/downgrades in the JetPrivilege programme.

Retro Claims: Members can claim retro claim of JPMiles only within 90days (3 months)

from the date of purchase. The member can approach the Green Card counter at the

Pantaloons store with the original bill. Alternatively, the member can send the original

bill to the JetPrivilege Service Centre for claiming retroactive mileage credit. The

member cannot claim additional GC discount on his next purchase incase he has

forgotten to present his Green Card while billing his previous purchase.

JPMiles will be credited to the members account within 4 weeks from date of

transaction.

Pantaloon Retail India Ltd. reserves the right to refuse membership to an applicant

without assigning any reason.

This partnership is not applicable at Pantaloons Factory Outlets.

All Pantaloons Green Card and JetPrivilege Programme Terms and conditions apply.

Cities where partnership is applicable: Agra, Ahmedabad, Bangalore, Baroda,

Bhubaneshwar, Chennai, Delhi, Ghaziabad, Gurgaon, Guwahati, Hyderabad, Indore,

Kanpur, Kolkata, Lucknow, Mangalore, Mumbai, Navi Mumbai, Nagpur, Nasik, Noida,

Pune, Rajkot, Siliguri, Surat, Zeerakpur.

ICICI Bank Big Bazar Silver Credit Card

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Exclusive Benefits

No Finance charges on EMI Purchases at Big Bazaar. On a purchase of Rs.1500 and

above in a single transaction, you can pay back the amount in 3 equal monthly

installments, without incurring any financing charges. You also get 1 Reward Point per

Rs 100 of EMI purchase (This scheme is optional and has to be availed before using the

Credit Card for the purchase, at predesignated ICICI Bank terminals).

Get Voucher worth Rs 250 to be redeemed against purchase of Rs.500 or more at any Big

Bazaar Outlet on payment through the ICICI Bank -Big Bazaar Credit Card.*

Get 1 Kg sugar FREE per month.

4 reward points on every Rs. 100/- spent at Big Bazaar (Except EMI Purchase) 1 reward

point for all non Big Bazaar purchases.

Special payment counters for Cardholders.

Priority payment to Cardholders during high traffic.

Special preview day during annual sale at Big Bazaar.

Exclusive offer for Cardholders from time to time.

Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar.

All Rewards points earned can be converted into Big Bazaar Vouchers.

Terms & conditions:

The offer is valid at all Big Bazaar and Food Bazaar Outlets.

The offers can only be availed with ICICI Big Bazaar Card or Shakti Card.

The product pictures are indicative and may not match with the actual products.

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Special payment counters for Cardholders.

Priority entry to Cardholders during high traffic.

Special preview day during annual sale at Big Bazaar.

Exclusive offer for Cardholders from time to time.

Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar. All

Rewards points earned can be converted into Big Bazaar Vouchers.

Terms & conditions:

The offer is valid at all Big Bazaar and Food Bazaar Outlets.

The offers can only be availed with ICICI Big Bazaar Card or Shakti Card.

The product pictures are indicative and may not match with the actual products.

Other Benefits

Comprehensive Insurance for primary Cards up to Rs. 20 lakhs.

Baggage insurance upto Rs. 25,000.

Hospitalization Benefit policy up to Rs.50,000.

Purchase protection of Rs.40, 000.

Comprehensive travel related insurance. Zero Lost Card liability.

Dial a draft at 1% fee.

Lifetime Balance Transfer offer: 0.75% for first 6 months (9% p.a.), followed by1.49% (17.88% p.a.) thereafter.

Comprehensive Travel Benefits.

Accepted at over 22 million merchant establishments globally.

Shakti Card

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Exclusive Benefits

No Finance charges on EMI Purchases at Big Bazaar. On a purchase of Rs.1500 and

above in a single transaction, you can pay back the amount in 3 equal monthly

installments, without incurring any financing charges. You also get 1 Reward Point per

Rs 100 of EMI purchase (This scheme is optional and has to be availed before using the

Credit Card for the purchase, at predesignated ICICI Bank terminals).

Get Voucher worth Rs 250 to be redeemed against purchase of Rs.500 or more at any Big

Bazaar Outlet on payment through the ICICI Bank -Big Bazaar Credit Card.*

Get 1 Kg sugar FREE per month.

4 reward points on every Rs. 100/- spent at Big Bazaar (Except EMI Purchase) 1 reward

point for all non Big Bazaar purchases.

Special payment counters for Cardholders.

Priority payment to Cardholders during high traffic.

Special preview day during annual sale at Big Bazaar.

Exclusive offer for Cardholders from time to time.

Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar.

All Rewards points earned can be converted into Big Bazaar Vouchers.

Other Benefits

Comprehensive Insurance for primary Cards up to Rs. 10 lakhs.

Baggage insurance up to Rs. 10,000.

Hospitalisation Benefit policy upto Rs.25,000.

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Purchase protection of Rs.20,000.

Comprehensive travel related insurance.

Zero Lost Card liability.

Dial a draft at 1% fee.

Lifetime Balance Transfer offer: 0.75% for first 6 months (9% p.a.), followed by

1.49% (17.88% p.a.) thereafter. Comprehensive Travel Benefits.

Accepted at over 22 million merchant establishments globally.

RelianceOne Membership Card

This is a card which was given to the customer at free of cost. This card helps to increase

the loyalty sales percentage of the store.

Benefits of this card are:

Customer will get 1% point of his purchasing amount added to his\her membership card.

When these points will become 25, it means that 25 points is equivalent to 25/-. He\she

will be able to redeem his\her points & get a discount of 25/-

With this card customer will get Accidental Death Insurance of 50000/- by default.

If customer will recharge their Hutch, Reliance, Airtel & Idea mobile from CSD then also

15 point of the amount he recharge will be added to his card.

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In starting customer will get temporary card, which is valid for 180 days. Within 180

days customer will get permanent card, which is look like plastic card at postal addr