The Loyalty Program inside the retail market

The loyalty program inside the retail
market

Table of Contents
Topic : The Loyalty Program inside the retail market. ...................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Introduction...........................................................................................................................1
1.2 Background...........................................................................................................................2
1.3 Overview of retail sector.......................................................................................................5
1.4 Aims......................................................................................................................................6
1.5 Objectives..............................................................................................................................7
1.6 Research Questions...............................................................................................................7
1.7 Scope of the study.................................................................................................................7
1.8 Rationale...............................................................................................................................8
1.9 Problem Statement..............................................................................................................10
1.10 Research Specification......................................................................................................12
CHAPTER 2: LITERATURE REVIEW.......................................................................................15
2.1 Introduction.........................................................................................................................15
Customer Perception.................................................................................................................15
Theme 1: Nature of competition in the international and local supermarket sector in Morocco.
...................................................................................................................................................16
Theme 2: To investigate the role of customer focused loyalty programmes in the supermarket
sector by the international and local store.................................................................................25
Theme 3: Recommendation of framework for improving the efficiency of customers focused
loyalty programmes...................................................................................................................33
CHAPTER 3: RESEARCH METHODOLOGY-PRIMARY RESEARCH..................................43
1 Introduction............................................................................................................................43
4.2 Research type......................................................................................................................44
4.3 Research strategy................................................................................................................45
4.4 Research philosophy...........................................................................................................46
4.5 Research Approach.............................................................................................................48
4.6 Research Design..................................................................................................................50
4.7 Research Sampling..............................................................................................................51

4.8 Data Collection....................................................................................................................53
4.9 Data Analysis......................................................................................................................54
4.10 Ethical Consideration........................................................................................................55
4.11 Research Limitation..........................................................................................................57
CHAPTER 4: DATA ANALYSIS................................................................................................59
CHAPTER 5: CONCLUSION & RECOMMENDATIONS.........................................................98
5.1 Introduction.........................................................................................................................98
5.2 Conclusion...........................................................................................................................98
Recommendation.....................................................................................................................113
REFERENCES............................................................................................................................120

Topic : The Loyalty Program inside the retail market.
CHAPTER 1: INTRODUCTION
1.1 Introduction
Loyalty programs are the company strategies which is very helpful to retained the
customers. Such marketing efforts have proven retailer one of the most effective and tactics for
increasing revenue and inspiring customer trust (Achy and Joekes, 2016). It has been analysed
that 84% consumers are stick with the companies who offers loyalty programs. This is the high
range quality services which is provided by the service provider to their service users. Apart
from such trends, retailers come up with the rewards programs which enable to inspire customers
loyalty and make them satisfied with the services and goals. Retail loyalty programs are
beneficial for those customers who are the frequent buyer. There are different types of other
retail loyalty programs such as Basic Points which is commonly used by the buyers in often
basis. In other words, Basic Points has been earned by consumer by spending more on the
product or services. Another form of loyalty program is Tiered Points system, Some
companies have customised basic points based.
In this customer loyalty program companies can better offer the customer service
programs to be more energetic and influencing in different manner. Other some kind of customer
loyalty programs is Partner retail loyalty programs apart from this it better apply and make the
changes in proper manner (Arvis and et.al., 2016). Running the loyalty along with strategic
partners is another option. It's a great way to gain new referral customers from the partners. In
other ways all such loyalty programs make customer happy and satisfied with the service of
companies. Loyalty programs are highly effective for the retailers where they found different
ways to promote the business goals. Upfront fee Loyalty Programs is the another best way to
promote the business targets and follows the better effective performance outcomes to create
new management system. Identify the common purchase barriers in the business. All such
customer strategies makes the buyers more satisfied and challenging business goals. Retail sector
has to invent some new customer centric approaches in order to meet the business target goals
into more efficient manner. Also, it requires the best service results to the business development
process (Babi, Asselin and Benzaazoua, 2016). Loyalty programs maintained the good and
effective relationship between company and customers which creates opportunity and growth to
lead the market. As compare to international market low cost retailers are less compatible in
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making quality services and products. So accordingly they not affordable the high cost customer
loyalty programs. Loyalty cards has been used in many ways in retail sector which helps to
motivate the business results and following the goals and objectives. The existence of various
loyalty card programmes generated an inquiries with high professional efficiencies. Apart from
this factor and basic business information is partially necessary for developing the scope of low
cost budget factors in the business gain (Baritaux and et.al., 2016). However , the basic purpose
of the study is to investigate the significance importance of loyalty programs within the so-called
budget mass market in Morocco market. Besides, secondary purpose of this study is to gain
competitive advantage to the international segments. In order to create budget and expand the
business operations retail businesses should acquire the new customer loyalty programs to gain
the buyers attention towards the local brands rather than preferring international retail such as
Walmart. It has been analysed that loyalty programs influence the purchasing behaviour of
customers. Hence, company should also need to acquire the business opportunities in order to
evaluate the business identification and goals opportunity. Besides, in order to beat the
international French market Retail sector of Morocco should have to focus on the customer
retention program.
Therefore, To engage the customer retention implementation of loyalty programs are very
useful and required for the low budget retail sector organization. The global wide spread use of
loyalty cards has generated contradicting views and findings their market share. Loyalty program
is the highly expected marketing efforts which is very effective and impactful for customer
purchasing behaviour and loyalty programs (Belkacemi, Menvielle and El Ourabi, 2019). It has
been researcher that customer are obsessed for having loyalty cards at some of the major retailers
in Morocco.
1.2 Background
In Morocco supermarket conditions or in other words distribution of food in Morocco is
depends on the income levels. Superstores generally more attract wealthy kind of customers. On
the other side, Traditional stores cater the interest of lower income group customers who
generally buys fewer products at cheap cost (The distribution network in Morocco, 2019). That is
why the market of 2016 was only 63% in retail industry in Morocco. Major of the big retailers
are present ion the all major cities of Morocco cities like in Agadir, Tangiers, Fes, Meknes etc.
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In terms of market share of the retail firms in Morocco are very heterogeneous structures
predominantly owned by small family-run shops in different manner. There are five brands that
corner grocery-retail sector which mainly more influencing and business target performance. In
2016 there were only 2250 stores which considered as modern grocery retailers (Belwal and
Belwal, 2017). Out of which 316 hypermarkets, 67 are supermarkets. All along the situation has
been taken that how this business structure effectively understand the business objectives and
target performance. So it has been identified that how such supermarket store get affected by the
low income generation. Also, it has been analysed that due to having the supermarket in some
countries it might happened the business formation and growth for the business management
system. In other words, loyalty programs is the best way to control the basic information task and
also helps to gain business organisation and make sure the best service outcomes. Apart from
this, customer loyalty programs are must be applied in the business in order to full fill the
business operation task (Bredvold and Skålén, 2016). The objective of this paper is to examine
the market of Morocco to explains the significance role of loyalty program. Nowadays, Due to
heavy business competition in the market companies encourages to the focus their marketing
efforts to maintained and expand the market share goals. Therefore, customer loyalty represents
a main factor for the companies competitiveness. Customer business loyalty programs has been
more influencing and highly demanding task. The relationship in between the business task is
highly influencing in the business effective performance. Customer loyalty program can also
helpful to gain the high advantageous results and build the new business. The first fusion strategy
makes the things more influencing and demanding business growth.
Present research will be explains the deep understanding by defining the marketing as a
different tools or ton encourage customer loyalty programs to engage the customer satisfaction
and also helpful to maintained the good relationship with the all service targets (Desbordes,
Aymar and Hautbois eds., 2019). Retail supermarket deals with multiple product or services
which inspire the best results and goals. Online loyalty programs are more useful and growing in
terms of business success and making the highest business performance objectives. Customers
usually register their personal information with the retail stores and are given an exclusive
identification goals. Indirectly this program affects the overall system opportunity which majorly
covers the high business task. The main purpose of such loyalty programs is to build up the
customer loyalty towards the brand.
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Overall, background of the study will explains the significance concept of leveraging
customer loyalty which explores the highest business goals which also explores and
identification of the business modification targets (Ekström and Norén, 2016). Comparatively
with any other industries maintaining CRM is quite necessary for the retail marketeers because
of the slow growth and intense competition among the retailers. Study also explore and
adjusting the different business goals which eventually sustained the business opportunity task.
There are several business opportunity that makes the thing understandable. Also, it defines the
business goals and also make the system more energetic and more attentive business targets.
Customer loyalty program has been identified and influencing the business goals (Fernandez
Hidalgo, 2015). It creates gather valuable data and business targets which generate personalized
experience with the services. Most modern consumers prefer a personalized experience with
more than half of generation. Customer loyalty programs also increased the company sales which
also be the most creative and influencing business task in terms of company generation and
business opportunity task. Increases sales, measure loyalty through engagement programs data
allows company to track the business analytics and vie point. Customer Loyalty programs also
give sufficient business task to influence the goals and services.
Customer Loyalty
Customer loyalty is the term which generally helps to define the relationship between
company and their customers (Frynas and Mellahi, 2015). It encourages consumers to shop more
consistently and also build the trust among the company organization. Loyalty refers to the
positive work which encourages the customers or buyers and also build the good perception
against company retailers. Therefore, customer satisfaction with the company products or
services could be considered they key to a company success and long term competitiveness.
However, it has been found that customer loyalty is the most essential part within the
organization to ramp up the highest business objectives and goals. The reason behind the same
reason to motivate people into the best way of becoming the highest range of development goals.
The company needs to transfer loyal customers towards to loyal customers in order to sustain the
long term relation (Godefroit-Winkel, 2018). It also helps to gain the systematic and long lasting
building results which definitely affect the company more energetic and growing results.
Customer loyalty is a result of a positive emotional, physical attribute based satisfaction and
perceived value of an expensive goals.
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Loyalty programs is the initiative to make loyal customers more efficient and long
lasting. A loyalty program may give a customer advanced access to new products. Also it makes
the effective long lasting working opportunities to work make goals. Organization used rewards
programs to retain the loyal customers with the organization level. Also it define how the
business opportunity and goals will make the things more effective and challenging business
task. There are different loyalty programs that retail firms could adopt to make the good
perception of the customers in front of the business. Such as Point system, tier system, charge an
upfront fee for VIP benefits (Hernández-Rubio and et.al., 2016). All such systematic loyalty
programs will make the things more clear and effecting. Loyalty card program is one of the most
leading type which helpful to make good efforts and form a systematic leading system. Loyalty
card is kind of incentive plan which allows retail business to gather information about its
customers. Another goal of a loyalty card program is to build repeat business by offering.
1.3 Overview of retail sector
Retail industry is the most huge and expanded business area. Where the businesses and
company generating the high business goals opportunity. There are different kinds of business
includes in the sector which explores the different opportunity. Such business organization
everybody understand the business organization which explores the business activities. There are
different kinds of business opportunity is present in the retail sector such as Apparel and fashion,
fashion and lifestyle, food & Beverages retail, Pharmaceutical retail and e-commerce e-tailing
business growth in the high influencing manner (Ichijo and Ranta, 2016). There are huge
opportunity includes in the retail market which explores the different work opportunities
involved. Also retail sector organization has been given the highest business opportunities. Large
working population and low share of organized retailing. On the other side, average income
expanding more business opportunity to work in more enlarging business growth. Large scale
outlets have become the norm in several of the kingdom major cities and while less formal
commerce still accounts for a large proportion of sales. Retail sector has been also increased due
to technological manner. Many of the retailers are highly engaged with the services into more
reliable manner. Retail sector is the highly advanced sector which explored the business
opportunities and also growing the high influencing business goals. Apart from this, retail sector
is the only sector which highly engaged with the customer service and for which they provide
huge customer loyalty gain services (Ikram, Nam and Kim, 2017). Besides, the role of
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