Abstract:
This case study looks into the growing popularity of common loyalty programs among retailers in India. The case analyzes the various common loyalty programmes launched by the different business groups like Reliance, Future Group and Tata.
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Issues:
» Common loyalty Programs
» How loyalty cards can be useful in retaining customers?
» Penetration of loyalty cards in Indian retail
Introduction
On February 3, 2012, India-based Tata Group (Tata) , one of the largest business conglomerates in the country, announced its plan to launch a common loyalty card covering several of its retail units and hotels. By announcing a common loyalty program, Tata joined the bandwagon of Indian retailers who had launched common loyalty schemes to attract and retain customers.
One of the first major retailers to introduce a common loyalty card in the country was Reliance Industries Limited (RIL). It introduced the 'Reliance One Card' which could be used in the nine formats of Reliance retail stores - Reliance Fresh - groceries store, Reliance Digital - consumer durables retailer, Reliance Mart - Hyper Market, Reliance Trends - apparel store, Reliance Footprint - footwear store, Reliance Super - Super market, Reliance Living - Furniture and homeware, Reliance Jewellery, and Reliance Autozone - Automotive Accessories Store...
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Questions for Discussion:
1. How can common loyalty cards help the retailers develop their businesses? Explain.
2. What are the reasons for low penetration of loyalty cards in India? How can the retailers overcome this challenge?
Key words:
Tata Group, Common Loyalty Schemes, Reliance One Card, AIMIA, Payback Firm, Future Group, redemption rate, penetration of loyalty cards
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