CUSTOMER RELATIONSHIP MANAGEMENT AND THE P&G GILLETE OFFERING

ACKNOWLEDGEMENT

I express my sincere gratitude to my faculty guide Mrs.Roli Raghuvanshi,lecturer, Amity school of busness, for his/her able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of P AND G STAFF, for the constant support and help in the successful completion of my project.

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CONTENT

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ACKNOWLEDGEMENT..................................................................................1 EXECUTIVE SUMMARY................................................................................3 INTRODUCTION..............................................................................................5 INDUSTRY INTRODUCTION.......................................................................41

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OVERVIEW OF FMCG SECTOR IN INDIA..............................42
COMPANY PROFILE.....................................................................................46 RESEARCH METHODOLOGY & OBJECTIVE ..........................................69 FINDING & ANALYSIS.................................................................................74 CONCLUSION................................................................................................82 RECOMMENDATION....................................................................................84 FUTURE PROSPECTS...................................................................................85 BIBLIOGRAPHY............................................................................................86 QUESTIONNAIRE..........................................................................................87

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4 . Shani and Chalasani define relationship marketing as “an integrated effort to identify. and/or other marketing actors. maintain. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers. yet relevant.EXECUTIVE SUMMARY Before we begin to examine the conceptual foundations of CRM.000 customer surveys conducted in 40 countries by Infoquest. through interactive. The conclusions of the study were: • A Totally Satisfied Customer contributes 2. • A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer. Another narrow. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 20. A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts. it will be useful to define what is CRM. individualized and value-added contacts over a period of time”. viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made.6 times as much revenue to a company as a Somewhat Satisfied Customer. by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. CRM is based on the premise that. and build up a network with individuals consumers and to continuously strengthen the network for mutual benefit of both sides.

the objective of a company is not to really prune its customer base but to identify appropriate customer programs and methods that would be profitable and create value for the firm and the customer.8 times what a Totally Satisfied Customer contributes to a business. In some cases. As several research studies have shown not all customers are equally profitable (Infact in some cases 80% of the sales come through 20% of the customers). it could even lead to “ outsourcing of some customers” so that a company better utilize its resources on those customers it can serve better and create mutual value. However. The company must therefore be selective and tailor its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs. Hence. An important facet of CRM is “customer selectivity”. • By reducing customer defection (by as little as 5%) will result in increase in profits by 25% to 85% depending from industry to industry.• A Totally Dissatisfied customer decreases revenue at a rate equal to 1. CRM is defined as: 5 .

Sensitivities. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer.Culture Background and education .Physical and psychological characteristics • Differentiating Offerings → Low value customer requiring high value customer offerings → Low value customer with potential to become high value in near future → High value customer requiring high value service → High value customer requiring low value service 6 . Understanding each customer becomes particularly important.INTRODUCTION Differentiate Customers: All customers are not equal.Lifestyle and age . And the same customers’ reaction to a cellular company operator may be quite different as compared to a car dealer. Preferences and Personalities . recognize and reward best customers disproportionately. What CRM needs to understand while differentiating customers is: . Tastes.

(Fig. Categorizing Customers) 7 . Referral sales invariably are low cost high margin sales. marketers can maximize share of purchase potential.Low value customers who High require high levels of service must either purchase the higher level of service or become our competitors low value/high cost customers High value customers who require a high level of service are maintained without expanding the costly offering to the entire customer population Low Service Requirement Low Keeping Existing Customers Customer Value High Fig. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances. • Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer. Customer value – Service Matrix Grading customers from very satisfied to very disappointed should help the organisation in improving its customer satisfaction levels and scores. • Increase Loyalty Loyal customers are more profitable. As the satisfaction level for each customer improve so shall the customer retention with the organisation. Any company will like its mindshare status to improve from being a suspect to being an advocate. It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve. Company has to invest in terms of its product and service offerings to its customers.

3. *Cultivate Relationship. CRM Activities High Strategic Importance To Your Low Business Plan *You have No Choice But To Handle Them Very Carefully.e. #Think Of Strategies TO Move Them Away From Competition. *Existing Customers #Potential *Very cautious decision needed. Spend Minimum Energy To Meet Your Objectives. 6.Summarizing CRM activities: The CRM cycle can be briefly described as follows: 1. 4. Re-examine Customers business Plan & Strategy. Short Term Acquisition Shouldn’t Affect Long Term Image. Use Opportunity As It Comes. #Don’t Pursue. Spend Energy. #Needs In-depth strategic review as acquisition alone and dissatisfaction later could be more harmful Low High Relationship & Profitability Potential Acquiring new customers 5 3 4 1 Creating value for customers & prospects 2 Creating loyal customers 8 . (having in depth knowledge of Creating value for customers and prospects Creating loyalty Acquiring new customers Creating profits Acquiring new customers Creating Profits Learning from customers a& prospects customer) Fig. Go Out Of Your Way. Will Consume Disproportionately High Energy. Learning from customers and prospects. But The ‘Cost Of Acquisition’ Must Be Controlled *Focus On Short Term Profitability. Will Consume Energy # Think Of Innovative Ways of Getting them On Your Side. 5. Evaluate That Your Loss (i. 2. Your competitor’s gain) Doesn’t become nightmare for you.

when Gibbs SR toothpaste began the first marketing of this kind with its black and white campaign. • 1970’s – saw the beginning of segmentation.Figure Customer Life Cycle Management Customer Need Assessment & Acquisition Customer Retention and referrals for new customers Customer Development through personalization and customization Customer Equity Leverage through Cross Selling and Up Selling The Emergence of CRM Practice The Past: Looking back at a snapshot history of marketing. 9 . direct mail campaigns and early telemarketing (such as publishing) • 1980’s – where Niche marketing made millionaires of those who were best at it. we can see the following clear developments and progression over the last four decades: • 1960’s – the era of Mass Marketing.

all set up to develop relationships with customers. the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. several factors have contributed to the rapid development and evolution of CRM. Similarly artisans often developed customized produce for each customer. In recent years however. Customer Orientation The organisation needs to be arranged so that all functions contribute Profit must be the consequence of delighting customers (Kotler) Developing customer relationship has historical antecedents going back into the pre industrial era. For example. The explosion of telemarketing and call centres. It was only after industrial era’s mass production society and the advent of the middlemen that there were less frequent interactions between producers and the consumers leading to transactions oriented marketing. Databases and direct marketing tools give them the means to individualize their marketing efforts. Such direct interaction led to relational bonding between the producer and the consumer. The recognition of the true value of retention and the use of Lifetime Value as a business case. Advances in information technology. a number of key marketing concepts can also be used to see where CRM has developed from: • • • Satisfying Needs. The production and consumption factions got separated leading to marketing functions being performed by the middle men and middlemen are in general oriented towards the economic aspects of buying since the largest cost is often the cost of goods sold. software or household appliances and even consumables. In addition to this. These include: 1. in many industries such as airlines. banks insurance. The growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end-customers. networking and manufacturing technology have helped companies to quickly match competition.• 1990’s – Relationship Marketing. 10 . 2. As a result product quality and cost are no longer significant competitive advantages.

Since services are typically produced and delivered at the same institution. In a recent study. In addition several marketers are concerned with keeping customers for life than making one time sale. In the current era of hyper competition. Also nowadays consumers expect a high degree of personalization. Thus several companies such as Motorola. General Motors. 6. 10. Toyota. The globalization of world marketplace makes it necessary to have global account management for the customers. Other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers. Customer expectations are changing almost on a daily basis. Another force driving the adoption of CRM has been the total quality movement. This needed close working relationships with the customers. The growth in service economy. Naidu. 4. The speed of business change. interactive channels including e-mail. 7. three important decision areas relate to defining the purpose (or objectives) of engaging in CRM. ATMs and call centre that must be synchronized with customer’s non-electronic activities. On the supply side it pays more to develop closer relationships with a few suppliers than to develop more vendors. et al(1999) found that relational intensity increased in hospitals facing a high degree of competitive intensity 11. IBM. 8. There is a greater opportunity for up selling and cross selling. it minimizes the role of the middlemen. marketers are forced to be more concerned with customer retention and customer loyalty. CRM Formation Process In the formation process. Ford. etc formed partnering relations with suppliers and customers to practice TQM. As several researches have found out retaining customers is less expensive and more sustainable competitive advantage than acquiring new ones. requiring flexibility and rapid adoption to technologies. Xerox. When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain. selecting parties (or customer partners) for appropriate 11 . 5.3. Newly Empowered customers who choose how to communicate with the companies across various available channels. Emerging real time. 9.

and through customer 12 . By seeking and achieving operational goals. such as lower distribution costs. CRM Purpose CRM Process Framework The overall purpose of CRM is to improve marketing productivity and enhance value for parties in involved in the relationship.CRM programs and developing programs (or relational activity schemes) for relationship engagement with the customer. Purpose   Increase Effectiveness Improve Efficiency - Role Specification Relationship Performance  Strategic  Financial  Marketing → Retenti on → Satisfac tion Planning Process Process Alignment Programs   Account Management Retention Marketing Monitoring Process Team Structure Communication Partners   Employee Motivation Criteria Process Employee Training Evolution • Enhancement • Improvement Fig. reducing the burden of excessive customer acquisition cost. streamlining order processing and inventory management.

consumers are motivated to seek the rewards and benefits associated with CRM programs. and redefining the competitive playing field for their company. These take different forms depending on whether they are meant for end-consumers. a company has to decide which customer type and specific customers or customer groups will be the focus of their CRM activities. individualizing and personalizing their market offerings to anticipate and serve the emerging needs of individual customer. In addition. They can enhance marketing effectiveness by carefully selecting. partnering to enter new markets and develop new products. one-to-one marketing. Relational Parties In the Initial phase. partnering programs. marketing goals. and. customers for its various programs. or business-to-business customers.retention economics. and general goals. 13 . Thus. firms could achieve greater marketing efficiencies. building customer loyalty and commitment. stating the objectives and defining the purpose of CRM in a company helps clarify the nature of CRM programs and activities that ought to be performed by the partners. to their natural inclination of reducing choices. CRM Programs A careful review of literature and observation of corporate practices suggest that there are three types of CRM programs: continuity marketing. These objectives could be specified as financial goals. operational goals. Defining the purpose would also help in identifying suitable relationship partners who have necessary expectations and capabilities to fulfill mutual goals. distributor consumers. strategic goals. It will further help in evaluating CRM performance by comparing results achieved against objectives. Customers are motivated to engage in relational behavior because of psychological and sociological benefits associated with reduction in choice decisions.

marketers aim to fulfill the unique needs of each massmarket customer. By using online information and databases on individual customer interactions.Marketing Loyalty Programs Cross-Selling Permission Marketing Personalization Affinity Partnering Co-Branding • • • • • Continuos Replenishment ECR Programs Customer Business Development Logistics Partnering Joint Marketing • Special Sourcing Arrangements Key Account Global Account Strategic Partnership Co-Design CoDevelopment One-to-One Marketing • • • • • Partnering/CompanyMarketing Table CRM Programs Continuity Marketing Programs Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers. and aftermarketing programs in order to develop 14 . interactive marketing. In the mass markets individualized information on customers is now possible at low costs due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products. Information on individual customers is utilized to develop frequency marketing.Table presents various types of CRM programs developed for different types of customers. One-to-one Marketing Meeting and satisfying each customer’s need uniquely and individually. The basic premise of continuity marketing programs is to retain customers and increase loyalty through long-term special services that has a potential to increase mutual value through learning about each other. Customer Types Program Types Mass Markets Distributors Business to Busin ess Markets Continuity Marketing • • • • • • • After.

and membership benefits or by creating online communities • Involving customers in the planning process would ensure their support in plan implementation and achievement of planned goals. Thus marketers should create common bonds through symbolic relationships. endorsements. the more critical is the role specification decision for the partnering firms. CRM Governance Process • Greater the scope of CRM program and associated tasks. • With mass-market customers frequent face-to-face interactions will be uneconomical. two types of partnering programs are most common: co-branding and affinity partnering. In the context of business-to-business markets. All customers are not willing to participate in the planning process nor is it possible to involve all of then for relationship marketing programs for the mass markets. etc 15 . Known as Key Account Management Program. • Operating process between the company and customer partners: Operating alignment will be needed in order processing. and the more complex is the composition of the relationship management team. merchandising process. Partnering Programs The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs.relationship with high-yielding customers. affinity groups. information systems. individual marketing has been in place of quite sometime. accounting and budgeting processes. • It is essential to establish intra-company communication particularly among all concerned individuals and corporate functions that directly play a role in managing the relationship with a specific customer or customer group. here marketers appoint customer teams to husband the company resources according to individual customer needs. In the mass markets.

or termination of CRM programs. Another global measure used by firms to monitor CRM performance is the measurement of relationship satisfaction. etc. design or governance process if needed. CRM Performance Evaluation Process Without a proper performance metrics to evaluate CRM efforts. to work in teams. marketing departments. service personnel. creating a system for discussing problems and resolving conflicts. If co-operative and collaborative relationship with the customers is treated as an intangible asset of the firm. call centres. one could estimate the propensity of either party’s inclination to continue or terminate the relationship. Training employees to interact with customers. Here the term relationship equity comes in where you measure the intangible assets of the firm. • Periodic evaluation of goals and results. fulfillment houses. By measuring relationship satisfaction. market and business development agents. and manage relationship expectations are important. modification. initiating changes in relationship structure. enhancement. it would be hard to make objective decisions regarding continuation. if any was primarily through sales people or service agents. In today’s environment most companies interface with their customers through a variety of channels including sales people. its economic value add can be assessed using discounted future cash flows estimates. Such propensity could also be indirectly measured by measuring customer loyalty.• Human resources decisions are also important in creating the right organisation climate for managing relationship marketing. Internet websites. For large customers it also includes cross-functional teams that may include 16 . a company’s direct interface with the customers. CRM Implementation Issues One of the most interesting aspects of CRM development is the multitude of customer interfaces that a company has to manage in today’s context. Until recently. So is the issue of creating the right motivation through incentives and rewards.

integrated marketing communication. It should assist the company in developing and enhancing customer interactions and one-to-one marketing through the help of suitable intelligent agents that help develop front-line relationship with customers. they still need to share information about individual customers and their interactions with the company on a real time basis. For example. Similarly a customer approached by a sales person unaware that she has recently complained about dissatisfactory customer service.6. is not likely to be treated kindly by the customer. opportunity management. account planning. If a call centre personnel cannot identify or differentiate a high value customer and does not know what to up-sell or cross sell to him then it would be a tremendous loss of opportunity for the company.personnel from various functional departments. customer care strategies. they still do not provide knowledge output to the front line personnel. demand generation. the challenge is to develop and integrated CRM platform that collects relevant data input at each customer interface and simultaneously provides knowledge output about the strategy and tactics suitable to win customer loyalty and support. customer problem solving. a customer who just placed an order on the Internet and subsequently calls the call centre for order verification expects the call centre staff to know the details of his or her order history. customer segmentation. As shown in Figure. virtual team management of large 17 . While each of these units could operate independently. implementation tools to support interactive solutions for customer profitability analysis. However. In addition. Therefore effective CRM requires a front-line information system that shares relevant customer information across all interface units. contact management. Relational databases. Although most CRM software solutions based on relational databases are helping share customer information. Such a system would identify appropriate data inputs at each customer interaction site and use analytical platforms to generate appropriate knowledge output for front-line staff during customer interactions. data warehousing and data mining tools are thus very valuable for CRM systems and solutions. CRM solutions platform needs to be based on interactive technology and processes.

these companies have handed over the responsibility of CRM implementation to information technology departments. and measuring CRM performance would be the next level of solution sought by most enterprises. This leads to creating an operational tool within the company. They are focussed on simply installing CRM software solutions without a CRM strategy or program in place. Internet Sales Group Knowledge Output Data Input Knowledge Output Integrated Marketing Information Platform •Information Content •Relational Databases •Decision Support System •Active Intelligence •Business Rules •Collaborative Communication • User Profiles Data Input Knowledge Output Data Input Call Centre Market Development Data Input Knowledge Output Knowledge Output Data Input Data Input Knowledge Output Marketing Customer Operations/ Service Figure. Information Platform for CRM Since CRM implementation comprises a significant information technology (IT) component. CRM tools would be valuable when they are used to identify and differentiate individual customers and to generate individualized offer and fulfill customized solutions. but the usability and effectiveness in producing desirable results from such tools is limited.global accounts. The lack of CRM strategy 18 .

surveys. it becomes imperative to design CRM solutions keeping in mind these most valuable customers and to leverage 80% non structured data of about 20% of these most valuable customers. could be mined out of this data warehouse. Metrics. Marketing. Knowledge Management (KM) is about embracing a diversity of knowledge resources. thereafter information which is required to effectively implement principles of CRM. Below zero customers) from plethora of internal and external data. Most valued customers. KM implementation is the key to CRM. From a corporate implementation point of view. A straightway technique is to create a data warehouse. customers. like legacy systems. Appropriate strategy and excellent implementation are both needed for obtaining successful results. it could backfire as ad hoc solutions could cause unintended deterioration in customer relationships. Balance Scorecard method. external marketing research agencies and cultivating the knowledge where it resides. benchmarking are some of the common technique of KM system evaluation. etc. Front office could be more productive if they could utilize customer knowledge. would leave the front-line people without any knowledge of what they should be doing with the additional customer information that they now have access to. Knowledge Management (KM) with focus on CRM As Peter Drucker defined “Information is data endowed with relevance and purpose”. existing data warehouses. Most growable customers. portals. CRM should not be misunderstood to simply mean a software solutions implementation project. websites. suppliers. It’s a proven fact that 80% of an organisation revenues come form 20% of its customers. 19 . partners. figures. To effectively implement a CRM solution it is very important to identify real knowledge about different types of customers (Viz.or CRM programs. sales after-sales people would be knowledge workers. ROI. For those who apply themselves and develop improvised solutions.

Microsoft solution. how to extract the knowledge that is pertinent to the user and translate it into a format that is easily understood. which is invariably not possible. it involves internal employees. and sustain the competitive advantage. CRM solutions focus on automating and improving business processes. It is possible to generate explicit knowledge from tacit knowledge. ERP and CRM Like ERP. Existing systems should be seamlessly linked with the proposed layer. Hence for tacit knowledge exchange text mining is very useful and important. 20 . i. seamlessly integrated through sharing data and savings as well. and customer support.e. Apart from the end-users.Just as more tangible corporate assets like computer systems have a finite shell life. it must be available at the right time to be able to act upon it. data and documents) means retaining the individual. so too does knowledge. where alliances and partnerships are keys to success. The choice of Customer Knowledge Management (CKM) architecture should have a layered approach. The supply chain of tomorrow will look like a virtual organisation. which can facilitate tacit knowledge exchange. etc. which may be reinvested to further enhance its efficiency. The success of relationships depends upon sharing of savings from the supply chain. customer service. sales. albeit in front-office areas such as marketing. channel members and other external entities such as advertising agencies and consulting organisations. but it’s a complex exercise. The bonding between partners will be closely held by CRM practices. CRM plays an important role in building long-term relationships. The key ingredient of this exchange is face to face sharing of knowledge or virtual environmental tools like Lotus Notes. like search engines. The choice for CKM system could be Web (Enterprise information portal) or a packaged solution such as Lotus Notes. The key to successful customer KM is personalization. There are ways to do text mining. Retaining tacit knowledge (derived from experiences. web solutions. text analysis tools. Role of CRM in the Context of SCM In the context of SCM.

21 . While CRM applications provide the framework for embodying. Regain Management “ The cost of acquiring a new customer is 9 to 12 times that of holding on to an existing customer. satisfaction.”-Philip Kotler A study conducted by Andersen Consulting in conjunction with EIU found that businesses are intensifying their focus on customer and are taking a more process oriented approach to customer relationship management.Whereas ERP implementation can result in improved organisational efficiency. as companies shift their focus from attracting new customer to retaining their more profitable ones. and improving customer value. Each of the customers then delivers an income stream and the stream of profit far exceeds the value of original purchase. and retention. Key Findings of the study are: (a) the number of businesses citing customer retention as a critically important measure in the next 5 years has jumped to nearly 60%. (b) by 2002. the percentage of profit a company makes from continued sales to its own customer base is consistently higher than the profit made on original sale. and (c) companies predict their use of Internet to collect customer data will surge by 430% Consumer Life Time Value Quantifying the “value” of customers is absolutely essential in regain management. identifying markets and channels for expansion. up from about 40% today. promoting and executing best practices in customer facing activities. profitability.. ERP provides the backbone. In fact. Income streams contribute cash flows in terms of years for any single product. resources and operational applications to make organisations more efficient in achieving these goals. CRM aims to provide organisational effectiveness by reducing sales cycle and selling cost. 83% of companies expect to have customer data warehouses.

Companies are increasingly adding data from a variety of sources to their databases. retention. a client checks into a hotel and his/her room isn’t ready. Customer relationships are increasingly sustained by information systems. The clerk could respond by “You are in luck! Your room isn’t ready. Other Technologies that are used are as follows: • • • Electronic Point of Sale(EPOS) Sales Force Automation Customer Service Helpdesk 22 . and development. systematic collection of information that is properly evaluated and compared against different points in time.Regain Strategies: • • Customization Differentiation Strategies The lost customer would be segmented differently from the existing customer. and monitor customer contact. and it has sufficient depth to understand the customer and accurately anticipate their behavioral patterns in future. implement. Customer data strategy should focus on processes to manage customer acquisition. Base and the company could provide additional features and benefits to win them back. That means you get to eat breakfast “on us” and use our business centre for free!” Tools • Customer database A good customer information system should consist of a regular flow of information. The customer database helps the company to plan. “Wow” Syndrome For example.

etc. finance. more innovative channels of interacting with customers are emerging as a result of new technology. where as CRM automates the relationship with customer covering contact and opportunity management . CRM and ERP are complementary. 23 . sales force management. self service Interactive Voice Response systems. EPABX) with an agent host software allowing for automating call routing to agents. customer order processing and fulfillment. Companies are now focusing to offer solutions that leverage the internet in building comprehensive CRM systems allowing them to handle customer interactions in all forms. order fulfillment and human resource giving an integrated view of business. sales forecasting.g. This will help the company in tracking and correcting the product problems reported by customers by feeding this information into the R&D operations via ERP.• Call Centres Call Centre helps in automating the operations of inbound and outbound calls generated between company and its customer. delivery. telecom and hospitality. installation. which can direct all customer queries and issues through appropriate channels to the right place for speedy resolution. such as global telephone based calls centres and the internet. • Systems Integration While CRM solutions are front office automation solutions. auto display of relevant customer data. Today. These solutions integrate the voice switch of automated telephone systems (e. These systems are useful in high volume segments like banking. ERP is back office automation solution. Therefore. presale and post-sale services and complaint handling by providing an integrated view of the customer. inventory. marketing and product knowledge. predictive dialing. An ERP helps in automating business functions of production. It is necessary that the two systems integrate with each other and complement information as well as business workflow. This integration of CRM with ERP helps companies to provide faster customer service through an enabled network.

CRM – A FRAMEWORK Traditional Approach to CRM • Customer Contact by − Telephone − Mail − In Person • Personal Selling • After Sales Service • Complaint Handling • Account Management • Customer care • Customer Satisfaction Web-Enabled & Integration Approach • Customer Information System • Customer Database • Electronic Point of Sale • Sales Force Automation • Automation of Customer Support • Call Centres • Systems Integration • Lifetime value of a Customer Integration with technology (Web & Internet) Data Mining for CRM: Some Relevant issues Data mining is an important enabler for CRM. Operational CRM solutions involve integration of business processes involving customer touch points. Collaborative CRM involves the facilitation of collaborative services(such as e-mail) to facilitate interactions between customer and employees. Advances in data storage and processing technologies have made it possible today to store very large amounts of data in what are called data warehouses and then use data mining tools to extract relevant information. 24 . All this effort produces rich data that feeds the Analytical CRM technologies. Data mining helps in the process of understanding a customer by providing the necessary information and facilitates informed decision-making.

Operational CRM Analytical CRM Collaborative CRM Customer Fig. products they buy. address. sex. education.8 Interactions between CRM Technologies Information Requirements Of An Effective CRM Solution The employees of a firm employing CRM would require rich information about their firm and customer base including: • Information about the market • Information about the firm • The current segment • Demographic Distribution (by age. marital status. etc) • The firm’s best customers and the segment they belong to. etc → The customer group /segment to which the individual belongs → History of present and past behavior 25 . family details. education. preferences. habits and tastes of each segment. • Individual level information consisting of: → Customer personal details such as name. income.

the salesman could use his intuition in arriving at the customer’s age and recover the characteristics of that age group such as the frequently bought products. • Predicting the possibility of an action that the cu has never undertaken. when customer of the retail store are segmented by profitability criteria. we need to extrapolate the characteristics of the group to which he/she might belong. Hence. In retail store example. • Targeting new set of customers.g. which influence a majority of the customer and therefore cannot be customized to suit individual tastes. habits and preferences → Events coming up in their personal life etc. A customer might not have tried out a new product because he/she was not aware of it. If the retail chain has opened a new store it can use the data from the most similar current store to predict the behavior of the new prospects. etc. a store can segment its customers on basis of age and characteristics can be extracted. example being the design of the physical layout of a retail store. When a new customer enters the store. • We are dealing with aspects of the service. 26 .→ Likes. Knowledge obtained by mining at macro level is useful when dealing with situations where: • We are dealing with a customer about whom we do not have individual information .  Levels of data mining operations The aggregate or the Macro level Mining at the macro level gives us a broad overview of the data e. we obtain clusters who are profitable to various extent. A salesman can encourage him/her to try out the product if his/her profile matches that of the current product users. dislikes. colour preferences.

• Knowledge obtained at the individual level is useful in situations where: − The firm wants to customize its offering to the customer based on the customer’s tastes and preferences e.) to further cement the precious relationship. For this. For example. birth of child etc. the firm obtains more data about him/her. • Data mining this level might be expensive if the data mining tool has to cull out individual information from a large database. then the store might offer a discount on the purchase of a tie of a matching colour. Offering individualized value adding propositions can strengthen relationship with the individual customer. birthdays. For example. Some important features to note about mining at this level are: • Micro-level mining provides specific information about a particular customer.g.The Individual or Micro level As interactions of the individual with the firm increases. 27 . − The firm wants to assist the purchase of a new product based on the information it has of the last purchase.g. Having a separate database for profitable customer might be helpful. − The firm wants to take advantage of the personal events in a customer’s life (e. the retail store can offer discounts on the purchase of a bundle of products that the customer prefers buying together. if a customer has bought a suit in his visit. the retail store can go to the extent of finding out the preferred colours of his shirt • A firm takes up micro level mining to build a detailed customer profile of a regular customer. we need to track the cu and mine at the individual or micro level. anniversaries.

− Current patterns that go against usually observed customer behavior point to interesting phenomenon. This model can then be used to predict future purchases of a customer. The most important link analysis application in CRM. Frequency. The most common operations used at this level are: Classification: Classification is a process that maps a given data item into one of the several predefined classes. A link analysis task performed on this data will point to items that are bought together e. Regression finds application in a CRM environment where prediction needs to be made about the behavior regarding real value added variables. product and customer categorization. Suppose the retail store collects data on the monthly visits of the customers viz. The retail store collects thousands of interactions daily. design coupons.g. Regression needs sufficient amount of data to be reliable and valid. If retail customer suddenly switches brand then he/she might not be satisfied with the last purchase. CRM uses classification for a variety of purposes like behavior prediction. is an operation that seeks relationship between product items characterizing product affinities or buyer preferences. And purchases made during each visit. Link Analysis Link Analysis seeks to establish relationship between items or variables in a database record to expose patterns and trends. etc. time spent on each visit. then this situation can be modeled by regression. Regression Regression is the operation of learning a function that predicts the value of a real valued dependent variable based on values of other independent variables. bread and butter are bought together rather than bread and orange juice. called market basket analysis. Such information can be used to design store layouts. Link analysis can also trace connections between items of record over time. 28 . If the manager has a strong intuition that total purchase is linked to frequency of visit.

rule induction. This implies the organisation has to change from: Mass Marketing Product Focus Economies of Scale 1 way communication Response Time Present CRM Alternatives Present CRM solutions are offered by host of vendors that are to a great extent not industry specific. Tools such as decision trees.Segmentation Segmentation aims to identify a finite set of naturally occurring clusters or categories to describe data. etc are used for the above purposes. This deviation on further analysis points out to non-stocking of a popular brand. Adopting a similar or a look a like solution across industries is what causes major strain in servicing a customer. Product Focus Customer Focus Economies of time Interactive Real Time 29 . visualization techniques. the broad model around which the CRM solutions are built remain the same. While there are some vendors. Deviation Detection Deviation Detection (DD) focuses on discovering the most significant changes in the data from previously measured. expected or normative values. The existing CRM Solutions Delivering the ‘360 view’ requires automation to bring together all the data concerning a customer. nearest neighbor techniques. case based reasoning. Suppose a retailer finds out that the sales from a particular section of the store have been much less than expected. Most CRM solutions have a DD task running in parallel on a regular basis. clustering algorithms. who have come up with industry specific solutions.

But typically sales teams could be managing leads on an excel worksheet. Field sales. Field Service Internet Customer Service Service Interaction Centre Business Partner Collaboration 30 . work on not completely predefined processes so as to enable front office to be proactive to each customer needs The Mindset impact on CRM A typical data warehouse will have the following components: • While developing a data warehouse one takes into account all the legacy and operation systems. However typical CRM offerings consist of: Customer Development Service Centre Sale management and support Market Analysis Internet. etc) vary from solution to solution. Tele marketing Product and brand management The Customer focussed organisation: CRM Model The idea here is to develop systems that allow flexibility. Tele sales. Internet Sales Call Centres.Typical offerings of the current CRM solutions (such as Siebel.com. Sometimes critical DSS input like “Profitability Analysis” itself may reside on a worksheet. Oracle Apps or MySap.

deduplicate. its is critical that extensive customer research is done to identify their information needs and thus what profile data will be relevant for us. Since a customer centric info-base is being developed.Data Warehouse Legacy & Operation Extract & Transfer Risk Cube FP&A Cube Mktg & Sales Cube Campaign Mgmt OLAP Tool Thus a Data Warehouse solution must be able to accept information from such “unstructured” sources as well as budget for an open architecture to enable plug-in for systems to be developed in the future. Now. Thus any data-warehousing project needs to work closely with the research team. the system must expect this kind of input on a regular basis 31 . c) Even though we may find 80% of the names in a database of a million customers using combinations of lets say a 1000 first and last names. a) Generally the existing information is mapped into a data warehouse.000 first and last names. b) After extracting the data from various systems. to take into account all possible combinations we may actually need a database of 10. we need to scrub and clean the data. Even then we may not be able to comprehensively cover all future combinations.

Thus the CRM specialist in marketing must be well versed with all these tools and techniques. Typically a data-warehouse and data mining person is placed in information technology to manage all queries. Integration and information dissemination must happen at all these points. kiosks. eCRM What is eCRM? In simplest terms eCRM provides companies with means to conduct interactive. With the advent of tools like MetaData Repository. e) The real power of the CRM system is its ability to provide a rich. personalized and relevant communications with customer across both electronic and traditional channels. Infact we need to budget for training the sales and marketing team with the use of datawarehouse. retail outlets. d) Ad-hoc querying is a tool that is most often used in such applications. It utilizes a complete view of the customer to make decisions about messaging. offers and channel delivery.rather than it happening by exception. respecting individual’s preferences regarding how and whether they wish to communicate with you and it focuses on understanding how the economics of customer relationship affect the business. Unfortunately not much effort is made to make this tool “end-user” friendly so that even a layman could run his/her reports. Internet and branches. drill down OLAP tools and Palm Pilots it is now possible for hardcore marketing and sales types to directly access and run their queries. 32 . as is the case with updating “masters” in a traditional system. It synchronises communication across otherwise disjoint-customer facing systems. mobile devices. It adheres to permission based practices. value added experience to our customers at all touch points – call Centres.

eCRM Vs CRM CRM is essentially a business strategy for acquiring and maintaining the “right” customers over the long term. Within this framework, a number of channels exist for interacting with customers. One of these channels is “electronic” – and has been labeled “e-commerce” or “e-business”. This electronic channel does not replace the sales force, the call Centre, or even the fax. It is simply another extension, albeit a powerful new one, to the customer. The thrust of eCRM is not what the organisation is “doing on the web” but how fully the organisation ties its on-line channel back to its traditional channels, or customer touch points. Why employ eCRM? Companies need to take firm initiatives on the eCRM frontier to • Optimize the value of interactive relationship • Enable the business to extend its personalized reach • Company-ordinate marketing activities across all customer channels. • Leverage customer information for more effective emarketing and ebusiness • Focus the business on improving customer relationship and earning a greater share of each customer’s business through consistent measurement, assessment and “actionable” customer strategies. The six “E’s” of eCRM 1. Electronic channels 2. Enterprise 3. Empowerment 4. Economics

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5. Evaluation 6. External Information eCRM Architecture The primary inputs to this module are mainly from the eCRM Assessment and strategy alignment modules. During this stage the company will try and develop a Connected Enterprise Architecture (CEA) within the context of the company’s own CRM strategy. The following is a set of technical eCRM capabilities and applications that collectively and ideally comprise a full eCRM solution: • Customer Analytical Software • Data mining software • Campaign Management software • Business Simulation • A real time decision engine Review and Assessment of CRM solutions CRM software applications embody best practices and employs advanced technologies to help organisations achieve these goals. Categories of CRM solutions Any enterprise , which wants to implement CRM solutions can choose from four categories of solutions

Integrated applications suite Interfaced applications bundle Interfaced best of breed solutions

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Best of cluster

Selecting an interfaced best of breed approach for pure functionality or a front office application suite solely for integration limits enterprise choices. Enterprises need to start with a clear picture of the basic truths of integration, interfacing and functionality. An integrated application suite is a set of application that employs a common architecture, referencing a common logical database with a single schema. Some suites are more often interfaced application bundle i.e. a set of interfaced application from a single vendor containing more than one technical architecture or more than one logical databasefrequently assembled by the vendor through the process of acquisition or partnership An alternative approach to suites is an interfaced best of breed solution – an approach whereby an enterprise selects from multiple vendors a set of applications that must be interfaced to work together, either by the enterprise, one of the selected vendors or a third party integrator. The individual applications are not the best in any objective sense. Rather, some enterprises select the applications because they best meet the particular needs. The challenge of this approach is that, in some cases, the enterprise fails to complete the necessary interfaces to get the individual applications working together; consequently, the applications remain stove pipes. Best of cluster is similar to best of breed except that here best is chosen from the cluster and they are interfaced. Key requirements for CRM solutions Some of the functional and technical requirements for CRM solutions are as listed below: • Business intelligence and analytical capabilities • Unified channels of customer interactions • Support for web based functionality • Centralized repository for customer information • Integrated work flow

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• Integration with ERP applications Functional Components of CRM solution CRM applications are a convergence of functional components, advanced technologies and channels. Functional components and channels are described below: Sales applications Common applications include calendar and scheduling, contact and account management; compensation; opportunity and pipeline management; sales forecasting; proposal generation and management; pricing; territory assignment and management; and expense reporting. Marketing applications These include web based and traditional marketing campaign planning, execution, and analysis;list generation and management; budgeting and forecasting; collateral generation and marketing materials management. Customer service and support applications These include customer care; incident, defect and order tracking; field service; problem and solution database; repair scheduling and dispatching; service agreements and contracts; and service request management. Given below is a brief review of what some of the known vendors in this area have in their applications for these verticals. The table 2 at the end gives comparative assessment of the products discussed below for the above verticals: • SIEBEL

It continues to out market and out sell the competition. It is one of the few front office suite vendors having vertical specific functions. Its functionality is compelling. It can be integrated with most of the back office solution like SAP and Oracle. It has solutions for

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automotive, public sector (US), communications, consumer goods, apparel and footwear, energy, finance, insurance, health care, life sciences and high technology industry sectors. The solutions for the verticals described above are discussed below: • For Consumer goods: a Siebel eConsumer goods offers eBusiness solution spanning the entire demand chain from the end consumer, through the retailer and the wholesaler, to the manufacturer. It has robust trade promotions planning functionality allowing users to manage customer promotion plans and the funds to support them, while comprehensive route planning functionality enables integrated account targeting. Using Siebel eConsumer Goods, organisations can also identify customer-buying behaviors and translate this understanding into new trade promotions and product offerings • For Financial Services: Siebel eFinance enables banking, brokerage, insurance, and capital market organisations to establish and maintain long term profitable relationship with consumers, small businesses, and corporate customers. The organisations can capitalize on information captured during each customer interaction to more effectively cross-sell and up-sell additional products and services. Additionally, Siebel eFinance provides a comprehensive view of the entire customer relationship across multiple product lines, enabling financial service organisations to provide a personalized experience across all channels. • For Healthcare: Siebel eHealthcare gives organisations the ability to streamline and improve sales, member services, medical management, and network management services. By using multiple distribution channels, including the Internet, call Centres, home office staff and independent brokers, Siebel eHealthcare provides organisations with a single view of their customers, thereby ensuring better service and improved quality of care. • For telecom service providers: Siebel eCommunications helps wireless, cable, and Internet service providers to target and win the right customers, accelerate service delivery, and provide service across all touchpoints. Siebel eCommunications

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order management. and up-selling and cross-selling additional services. boasts 117 applications that span sales and service and incorporate multiple vertical markets. wireless and face-to-face contact. service representatives and salespeople can instantly access information such as billing. the vendor's major release. E-mail. Siebel 99. managing billing inquiries and adjustments. A major effort in the new application release is it integrates all the channels companies use to contact customers: Web. and network management from Operation Support Systems (OSS). to deliver highly responsive customer support and significantly increase sales.0 Siebel eBusiness Connector for SAP R/3 ® Siebel Communications Server Siebel Distance Learning Siebel Global Enterprise Support Siebel Language Extensions Siebel Wireless Siebel Call Center Siebel eChannel Siebel eMail Response Siebel Field Service Siebel Marketing Siebel Sales Siebel Service Siebel eCustomer Siebel eMarketing Siebel eSales Siebel eService • Clarify 38 . voice.embodies the industry’s best practices for generating accurate service orders. Some of Siebel employeefacing applications are: Some of Siebel customerfacing applications are: Some of the additional products available in version 6. By using Siebel eCommunications’ integration technology.

• Vantive Vantive offers a compelling customer service and support and field service suite.It offers customer service & support and field service suite. It offers a broad set of functionality across e-commerce. centralized computing model. The solution is integrated with PeopleSoft at the back office. Oracle is rebuilding functionality on the new platform and integrates its various acquired products. Web Based. front office and business intelligence applications. Available Available Available Available Available Available Available N. The Internet computing architecture is compelling for connected non-mobile users.A. however its sales functionality is immature. Available Siebel Clarify Oracle Vantive 39 . The rest of its front office functionality makes it suite more of a bundle.A. Table Comparative Assessment of CRM Products for Vertical Specific Requirements CRM Application Requirement Consumer Products Category Management Promotion Management Demand Planning Interactive Selling Telecom Service Providers Blended Sales & service contact Centre Available Available Available Available Available Available Available Available Available Available N. • Oracle Oracle is betting everything on its thin.

N.A. Available Available Available N.A.A. Some frequent modules that most CRM have is: 40 . Available Available N. Available Available N.A. Available Some Indian CRM solutions are by Sales Logix. N. Available N.A.A. Available Available N.A. N. Sonata Software. L&T information technology.A. Available N. N. N.A. Available N.A.A. N. Logix Microsystems.A. Available Available N.A. etc. Available Available Available Available Available Available N.A.A. N. N.A. Available N.Competitive Pricing Analysis Integration with Billing System Churn management Commercial Banking Contact Centre Profitability Analysis Integrated Targeting Marketing Datamining Pharma & Healthcare Contract Management Marketing Analysis Disease Education System Knowledge Management System N.A.A.A. N.A. Epiphany. Available N. Other CRM solutions are Aurum.A. Avyaya and Onyx. Oracle India.

In order to be effective CRM service providers will need a balanced understanding of both products and services. The potential use of CRM lies in it being the leading indicator of future revenue than just being used as a customer facing transaction-processing tool or as a lagging indicator communicating past consumer grievances. The databases feed the technology infrastructure which links You with the customer touch points. Opportunity Management. The complete concept of CRM can be mapped on a technology solution as per the following blue print. CRM solutions are interwined combinations of technology and business processes. and Event Management.Forecast Management. It’s necessary to have an expertise in not CRM technology but also customer service processes. Encyclopedia Management. Brand Management. Thus we have four components of a CRM initiative rollout • • • • Customer Value Management Strategy CRM roadmap keeping in mind industry nuances Database solutions Customer access channels 41 . Campaign Management.

Amway. they generally sell in large quantities. Western Europe. hair oil. Birla are entering in FMCG sector. P&G and Gillette merge into one company and add five more Billion Dollar Brands to our product portfolio including Gillette and Braun's shaving and grooming products.INDUSTRY INTRODUCTION FMCG product is well known as fast moving consumer goods. toothpaste etc. so the cumulative profit on such products can be large. Because of the daily needs these products have the demand in the market. 42 . Northeast Asia. Today. fabric care. shaving cream. hair care. oral care. Indian population potential is huge that’s why India is a big market for FMCG The big player like wall mart Bharti. is a product that is sold quickly at relatively low cost. the study of golden store is introduced. Latin America. the Company markets over 300 branded products in more than 160 countries. P&G and HUL are already existing big player in FMCG sector because of the increasing competition P&G launches the different schemes one of them is ‘golden store’. In personnel care these product play a vital role in daily life like shampoo. Fast Moving Consumer Goods (FMCG). Though the absolute profit made on FMCG products is relatively small. It is organized along seven geographic areas: North America. The Company has operations in over 80 countries through its Market Development Organization "MDO". the Oral-B dental care line and Duracell batteries. Chaupal fresh. trade channel and country-specific teams that work to build the Company's brands in local markets. also known as Consumer Packaged Goods (CPG). Greater China and ASEAN/Australasia/India. baby care. The MDO includes dedicated retail customer. detergent bar. The Procter & Gamble Company is focused on providing branded products to improve the lives of the world's consumers. The FMCG products are the daily need based product like health care. That’s why how it is beneficial to wholesaler and retailer. reliance. Central and Eastern Europe/Middle East/Africa. Procter & Gamble markets over 300 branded products in more than 160 countries. personal care etc.

Availability of key raw materials. Around 70 per cent of the total households in India (188 million) reside in the rural areas. intense competition between the organized and unorganized segments and low operational cost. the market potential is expected to expand further. The FMCG market is set to treble from US$ 11. presents an opportunity to makers of branded products to convert consumers to branded products.4 billion in 2015. 43 . India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. The annual size of the rural FMCG market was estimated at around US$ 10.OVERVIEW OF FMCG SECTOR IN INDIA The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13. skin care. India is one of the largest emerging markets. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10. India needs around US$ 28 billion of investment in the foodprocessing industry. hair wash etc in India is low indicating the untapped market potential. particularly the middle class and the rural segments. It has a strong MNC presence and is characterized by a wellestablished distribution network. Penetration level as well as per capita consumption in most product categories like jams. with a population of over one billion.1 billion. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. With 200 million people expected to shift to processed and packaged food by 2010. toothpaste.6 billion in 2003 to US$ 33. Growth is also likely to come from consumer 'upgrading' in the matured product categories. This presents the largest potential market in the world. Burgeoning Indian population. With growing incomes at both the rural and the urban level.5 billion in 2001-02.

Rural and urban potential Rural-urban profile Urban Population 2001-02 (mn household) Population 2009-10 (mn household) % Distribution (2001-02) Market (Towns/Villages) Universe of Outlets (mn) 53 69 28 3. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. 44 .3 Source: Statistical Outline of India (2001-02).768 1 Rural 135 153 72 627. NCAER An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products.000 3.

Gone are the days of supernormal profits. The saying goes customer is king.Rapid urbanization. have all caused rapid growth and change in demand patterns. gone are the days of monopoly in the 21-century. Aspiration levels in this age group have been fuelled by greater media exposure. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. unleashing a latent demand with more money and a new mindset. leading to an explosion of new opportunities. increased literacy and rising per capita income. more and more companies have realized the 45 .

constantly meeting and exceeding customer expectations is the key to success today. Also most of the retailing in India is through unorganized sector. with only about 4% of retailing through organized retail. The FMCG industry in India is characterized with low switching cost. Making the products available with all distributors and retailers in right numbers at the right time according to the demand is the biggest challenge for the FMCG sector. 46 . This has resulted in complex distribution network for most of the FMCGs. With more and more companies fighting for customer locality from the same customer group. Most of the FMCGs have a large network of warehouses/depots. Mostly it is an industry having low involvement buying. customer delight is the new mantra. distributors.importance of acquiring and retaining customers. where the customer is ready to experiment with new brands. Companies have moved beyond customer satisfaction. retailers.

a candlemaker. the company won contracts to supply the Union Army with soap and candles. their father-in law decided to call a meeting where he convinced his new sons-inlaw to become business partners.COMPANY PROFILE HISTORY OF P&G William Procter. established a profit-sharing program for the company's workforce in 1887. approximately eighty employees worked for Procter & Gamble. who had settled earlier in Cincinnati might never have met had they not married sisters. In 1859. The company prospered during the nineteenth century. During the American Civil War. immigrants from England and Ireland respectively. the company began to focus most of its attention on soap. William Procter's grandson. The company became known for its progressive work environment in the late nineteenth century. In the decades that followed. Once the war was over and the men returned home. In addition to the increased profits experienced during the war. By this point. In the 1880s. On October 31. The two men. as a result of the suggestion. an inexpensive soap that floats in water. a new enterprise was born: Procter & Gamble. formed the company known as Procter & Gamble in 1837. Procter & Gamble began to market a new product. The company called the soap Ivory. William Cooper Procter. 1837. a soapmaker. Procter & Gamble continued to grow and change. producing more than thirty different types by the 1890s. He hoped that by giving the workers a stake in the company. Olivia and Elizabeth Norris. the military contracts introduced soldiers from all over the country to Procter & Gamble's products. As electricity became more and more common. sales reached one million dollars. the Panic of 1837 caused intense competition between the two and as a result it led to discord with the family. Alexander Norris. 47 . they continued to purchase the company's products. and James Gamble. Since both their industries used similar resources. they would be less inclined to go on strike. Over time.

As a result. Procter & Gamble maintained a strong link to the North East of England after this acquisition. Procter & Gamble began making "Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. Procter & Gamble continued to grow. numerous new products and brand names were introduced over time. The company introduced Tide laundry detergent in 1946 and "Prell" shampoo in 1950. In the early twentieth century. the company chose to stop manufacturing candles in 1920. the company purchased Charmin Paper Mills and began manufacturing toilet paper and other paper products. Company leadership also pioneered in the area of market research. Procter & Gamble continued to prosper.there was less need for the candles that Procter & Gamble had made since its inception. a shortening made of vegetable oils rather than animal fats. The company moved into other countries. the company sponsored a number of radio programs. In addition. Ultimately. becoming an international corporation with its 1930 acquisition of the Newcastle upon Tyne-based Thomas Hedley Co. in 1911. The company began to build factories in other locations in the United States. One of the most revolutionary products to come out on the market was the company's "Pampers". these shows often became commonly known as "soap operas. Procter & Gamble also became known for its research laboratories. both in terms of manufacturing and product sales. Procter & Gamble began selling the first toothpaste to contain fluoride. first test-marketed in 1961. began producing Crisco. As radio became more popular in the 1920s and 1930s. The company's leaders began to diversify its products as well and. In 1955. known as "Crest". because the demand for products had outgrown the capacity of the Cincinnati facilities. Once again focusing on laundry." Throughout the twentieth century. and Procter & Gamble began branching out into new areas. In the early 1900s. investigating consumer needs and product appeal. Branching out once again in 1957. 48 . where scientists worked to create new products.

this placed their management in the unusual position of testifying in court that they had entered into transactions they were not capable of understanding. For example. Babies always wore cloth diapers. Max Factor. In 1996. although Johnson & Johnson had developed a product called "Chux". and Dry Idea were sold to Dial Corporation. It also plans to divest Gillette's oral-care product line. In 1994. The acquisition was approved by the European Union and the Federal Trade Commission. Rembrandt. Soft & Dri. Braun. P&G has agreed to sell its SpinBrush battery-operated electric toothbrush business to Church & Dwight. Ohio History Central. among others. Also known by its brand name Olean.Prior to this point disposable diapers were not popular. RichardsonVicks. Norwich Eaton Pharmaceuticals. Duracell. {Source. Procter & Gamble acquired a number of other companies that diversified its product line and increased profits significantly. but its headquarters still remains in Cincinnati. the company made headlines for big losses resulting from leveraged positions in interest rate derivatives. which were leaky and labor intensive to wash. The deodorant brands Right Guard. Olestra is a substitute for fat in cooking potato chips and other snacks. Over the second half of the twentieth century. 2005.} In January 2005 P&G announced an acquisition of Gillette. P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. Noxell. forming the largest consumer goods company and placing the Anglo-Dutch Unilever into second place. This added brands such as Gillette razors. and subsequently sued Bankers Trust for fraud. with conditions to a spinoff of certain overlapping brands. Shulton's Old Spice. Olestra. Procter & Gamble again made headlines when the Food and Drug Administration approved a new product developed by the company. P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another 49 . Pampers simplified the diapering process. and Oral-B to their stable. and the Iams Company. These acquisitions included Folgers Coffee. Procter & Gamble has expanded dramatically throughout its history. The companies officially merged October 1.

P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company. USA. It was established in 1837 when William Procter. a candle maker and his brother-in-law. James gamble a soap maker.world's No. the Company was voted India's 2nd Best Employer in previous editions of the survey in 2001 and 2002. By 1859.P&G Home Products Limited is one of India's fastest growing Fast Moving Consumer Goods Companies that has in its portfolio P&G's global brands such as Ariel and Tide in the Fabric Care segment. BACKGROUND NOTE: The US based P&G is the no. value-added products to meet the needs of consumers. P&G and Gillette merge into one company and add five more Billion Dollar Brands to our product portfolio including Gillette and Braun's shaving and grooming products. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies that has in its portfolio P&G's billion dollar brands such as Vicks & Whisper. the Oral-B dental care line and Duracell batteries. 500+ cores. the Company has carved a reputation for delivering high quality. and in the Hair Care segment: Head & Shoulders . merged their small businesses.world's largest selling anti-dandruff shampoo. that in India. P&G Hygiene and Health Care Limited takes pride in being voted India's Best Employer 2003 in a survey of 200 companies conducted by International HR Consultancy Hewitt Associates in association with Business Today magazine. Earlier. has carved a reputation for delivering superior quality. They setup a shop in Cincinnati and nicknamed it ‘porkoplis’ because of its dependence on swine slaughterhouses. and Rejoice Asia's No.1 maker and marketer of household products in the US and one of the largest FMCG companies in the World. Pantene . 1 beauty shampoo. With a turnover of Rs. 1 shampoo. Notably. P&G was 50 . value-added products to meet the needs of consumers. there are over 200 Indian employees with P&G Subsidiaries abroad.

86. With an employee strength of around 110. Feminine. its risk-averse culture seems to be stifling innovation and obstructing commercialization of new ideas quickly. Ariel.generating sales of Rs. The company introduced Ivory a floating soap in 1879 and Crisco. Reportedly. Baby. COMPANY PURPOSE: We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. purchasing. P&G reported revenues of Rs. head & shoulders. engineering and distribution.36bn. Ivory personal care. 10. It streamlined its businesses by broadly dividing them in to 5business segments. Actonel and Max Factor cosmetics. Whisper. In 1985. As a result. Vicks Vaporub. manufacturing. P&G began to face several problems during the 1990’s. and family care. sold in 1968) and Folgers coffee (1963). Its new products development activities seemed to have slowed down. the first all vegetable shortening in 1911. In 2003 the company was ranked 31st among the fortune 500 companies. beauty care. Duncan Hines (1956). Pantene.76bn and net earnings of Rs. Clairol herbal essences. 10mn. By mid 2003 the company was well on its way towards achieving these targets. Cheer. Pampers. P&G announced several major organizational changes relating to category management. consumers will reward us with leadership 51 .000 worldwide. The company acquired Spic & Span (1945).Fabric and homecare. For the financial years ending June 2003. Some major P&G brands were Tide. Crest. Between 1940’s and 1960’s P&G embarked on a series of acquisition. These segments comprised of several product division that collectively sold more than 300 brands to nearly 5bn consumers in 160 countries across the globe. P&G had operation in 80 countries globally. Clorox (1957. During the late 1990’s P&G revenues were stagnant and its income was decreasing. gain. After witnessing a period of significant organic and inorganic growth worldwide. health care and Food & beverages.

We have a compelling desire to improve and to win in the marketplace. including recognizing risks. We operate within the letter and spirit of the law. as we want to be treated. PASSION FOR WINNING • • • We are determined to be the best at doing what matters most. We attract and recruit the finest people in the world. We have a healthy dissatisfaction with the status quo. INTEGRITY • • • • • We always try to do the right thing. profit. and treat them. We act on the conviction that the men and women of Procter & Gamble will always be our most important asset. We are honest and straightforward with each other. and the communities in which we live and work to prosper. promoting and rewarding people without regard to any difference unrelated to performance. and consumers. 52 . and value creation. customers. allowing our people. We build our organization from within. TRUST • We respect our P&G colleagues. COMPANY VALUES: P&G is its people and the values by which we live. We are data based and intellectually honest in advocating proposals. our shareholders. We uphold the values and principles of P&G in every action and decision.sales.

COMPANY PRINCIPLES a) We Show Respect for All Individuals • • • We believe that all individuals can and want to contribute to their fullest potential. • We encourage stock ownership and ownership behavior. standardize. d) We Value Personal Mastery • We believe it is the responsibility of all individuals to continually develop themselves and others. and streamline our current work whenever possible. 53 . We believe that people work best when there is a foundation of trust. We value differences. • We are honest with people about their performance.• • We have confidence in each other's capabilities and intentions. standards. Our quest for mutual success ties us together. We only do work and only ask for work that adds value to the business. b) The Interests of the Company and the Individual Are Inseparable • We believe that doing what is right for the business with integrity will lead to mutual success for both the Company and the individual. and challenging goals. c) We Are Strategically Focused in Our Work • • • We operate against clearly articulated and aligned objectives and strategies. We inspire and enable people to achieve high expectations. We simplify.

Marketing visit to various wholesaler. marketing from P&G Mumbai. f) Innovation Is the Cornerstone of Our Success • • We place great value on big. new consumer innovations. Then he take the order from shop and also suggest to add the new goods of P&G 4.• We encourage and expect outstanding technical mastery and exceptional excellence. e) We Seek to Be the Best • • We strive to be the best in all areas of strategic importance to the Company. Then it is distributed to the wholesaler. Then he put forward orders to C. Marketing office 5. We challenge convention and reinvent the way we do business to better win in the marketplace.G. G. DISTRIBUTION CHANNEL OF COMPANY: Material is procured by C. Sales executive from C. & distributor. We benchmark our performance rigorously versus the very best internally and externally. • We learn from both our successes and our failures. G. 54 . The material is outward from C.G. retailer. Procedure of distribution 1. Then stock check by him 3. and retailer 2. Marketing office to various shop from were the order is taken.

Procter & Gamble India launches Ariel detergent . outstanding whiteness and stain-removal. in the same year the Mandideep (Bhopal) Factory starts its operations. breakthrough technology products. in India to cater to the main concerns of the Indian households. Ariel is the world’s leading detergent and epitomizes ‘stain removal’.another of P&G's global. Ariel Front-O-Mat Ariel 2 Fragrances Tide Detergent Tide Bar ARIEL 2 FRAGRANCES:- In 1991. 55 .PRODUCT RANGE Fabric Care Procter & Gamble has two of its world-leading detergents – Tide and Ariel. Also. namely.

Core Target Audience Females seeking superior end result from their cleaning Core Equity Best possible cleaning as shown by stain removal Key Features & Benefits • Provides superior cleaning. • • • SKU Lineup SKU MRP (Rs. Revolutionary new technology ‘ZPB’ helps remove clay stains better Ideal for hand wash and top loading machines. removing stains in the 1st wash.5kg 158 ARIEL FRONT-O-MAT:- 56 .) 20gm 2 200gm 26 500gm 55 1kg 107 1. Available in 2 scents to appeal more consumers.

• Using Ariel Front-O-Mat completely eliminates the need to bucket soak and scrub.Ariel Front-o-Mat is introduced in India exclusively for front load washing machines. which need a special detergent chemistry due to their tumble wash technology.) TIDE 1kg 155 57 . The unique tumble wash technology of front-loading machines needs a special chemistry. SKU Lineup SKU MRP (Rs. Using Ariel Front-o-Mat completely eliminates the need to bucket soak and a scrub. Core Target Audience Females seeking superior end result from their cleaning in front-loading washing machines Core Equity Best possible cleaning as shown by stain removal Key Features & Benefits • Low suds. which Ariel Front-o-Mat provides. Ideal for front-loading machines.

) Hair care P&G’s Beauty Business is over US$ 10 Billion in Global Sales. The P&G beauty business sells more than 50 different beauty brands including Pantene. P&G’s beauty care business comprises of Pantene.Launched in India in mid-2000. Tide provides superior whiteness for everyday clothes. SK-II. the world’s No. 20gm 2 200gm 11 500gm 26 1kg 51 2kg 102 4kg 204 58 . the world’s largest selling shampoo. In India. Olay. Herbal Essences and Clairol Nice ’n’ Easy. 1 Anti-dandruff shampoo and Rejoice – Asia’sNo. Core Target Audience Females wanting to keep their family’s clothes absolutely clean Core Equity Superior whiteness for everyday family clothes Key Features & Benefits • • • World’s first and most trusted detergent.1Shampoo. Head & Shoulders. This is possible. Tide provides ‘Outstanding Whiteness’ on white clothes & excellent cleaning on colored clothes as well. due to its ‘antiredisposition’ global technology. Brightens colored clothes due to the ‘Anti-Redeposition’ global technology. Hugo Boss. Joy. SKU Lineup SKU MRP (Rs. Cover Girl. which Tide employs. making it one of the world’s largest beauty companies. Max Factor. which prevents dirt from re-settling on the fabric during the wash itself.

59 . Smooth & Silky for Straighter hair. High conditioner level for healthy. 18-34 years old Core Equity Beauty via superior hair health transformation Key Features & Benefits • • Variants • Amino Pro-V Complex that makes hair 10 times stronger. Gentle enough for daily use. • • • • Pantene Pro V Head & Shoulders Rejoice PANTENE PRO V Core Target Audience Female.Procter & Gamble is committed to making every day in the lives of its consumers better through the superior quality of its products and services. even on premed or color-treated hair. straight looking hair with a vibrant shine.

High conditioner level for a healthier. Darkens each strand of hair uniformly from root to tip and enables women to keep their hair long. • Hair Fall Control for reducing hair fall by 50% in just 2 months. High conditioner level. fresh and healthy hair that remain free-flowing throughout the day. Low conditioner level that converts weighted down and oily hair to clean. SKU Lineup Variant Smooth & Silky Hair Fall Control Lively Clean Long Black Anti Dandruff HEAD & SHOULDERS 7. High conditioner level. • Long Black for the Long & Black hair look. • Lively Clean for Livelier hair.5ml 3 3 3 3 3 100ml 54 54 54 54 200ml 99 99 99 99 99 400ml 164 164 - 60 .• Volume & Fullness for Thicker hair. fuller and bouncier feel to the hair.

5ml 100ml 200ml 400ml 61 . Has black sesame and walnut extracts that nourish hair and scalp to make black hair look silky. irritation. Variants: • Smooth & Silky for Straighter hair: High conditioner level. dry Scalp & Oiliness. Removes flakes itchiness. • Silky Black: High conditioner level. Relieves hair dryness to make the hair silky smooth. Has a cleansing system that gives your hair a wonderfully clean look and feel. 18-34 years Core Equity Superior Anti-Dandruff efficacy and superbly attractive hair Key Features and Benefits: • • Anti-Dandruff shampoo with ZPT & conditioner. • Clean & Balanced: Medium conditioner level.the five signs of Dandruff.Core Target Audience Male/Female. SKU Line-up Variant 7.

It was rated as ‘India’s Most Trusted Brand’ by the ‘Advertising & Marketing’ Magazine and continues to be on top of the charts of BrandEquity surveys till date.1 Cough & Cold Brand. some of which were – the ‘Happy Birthday Mummy’ and ‘Touch Therapy’ campaigns for Vicks VapoRub. The Vicks business in India is the biggest in the ASEAN-Australasia-India (AAI) region. Vicks has launched several heart-tugging advertising campaigns. Vicks Formula 44 Cough Syrup and Vicks Inhaler. Vicks VapoRub. • • • Vicks VapoRub Vicks Inhaler Vicks Formula 44 62 . the ‘Haan Bhai Haan’ ad for Vicks Action 500. Its current portfolio in India comprises Vicks Action500+. Over the years. It created the cold & cough Over-theCounter (OTC) category in India way back in 1952 and has led the category till date. Today it has completed more than 50 years in India. Vicks Cough Drops. the ‘Khich Khich Dooor Karo’ ad for Vicks Cough Drops.Smooth & Silky Clean & Balanced Aloe Vera Silky Black Refreshing Menthol Natural Shine Health Care VICKS 3 3 3 3 3 3 64 64 64 64 64 64 122 122 122 122 122 122 215 - Vicks is India’s No.

body ache. Pudinah ke Phool (Menthol).• • Vicks Cough Drops Vicks Action 500+ VICKS VAPORUB:- Core Target Audience: Mothers with Children between 3-8 seeking comforting cold relief. congestion and headache. Core Equity: Fast acting relief from the 6 symptoms of cold. Key Features and Benefits: • Finds a place in every Indian home. breathing difficulty. so it is safer than pills and also doesn’t interact with other medication. Nilgiri Tel (Eucalyptus Oil). due to its proven performance against cold over decades. • Applied externally. Contains Kapoor (Camphor). • Works on the 6 symptoms of cold blocked nose. Grooming & Personal Care 63 . • Ayurvedic and safe for regular use. cough.

64 . apply to the face prior to an electric shave. Gillette Fusion Pre and Post Shave A range of shaving gels and foam plus a post-shave Hydra Soothe Balm and Hydra Cool Gel to calm your just-shaved skin Gillette Fusion Manual and Fusion Power • Gillette's Best Shave in Manual and Battery Power. with less irritation .Even when shaving against the grain Gillette M3 Power and M3 Power Nitro The Gillette M3Power razor is the first battery-powered shaving system from Gillette. more comfortable shave. After Shave Lotion Combines the refreshment of a lotion with the masculine invigorating fragrance of Old Spice Pre-electric Shave Lotion For a smoother.Gillette M3Power The Gillette M3Power razor is the first battery-powered shaving system from Gillette Gillette Mach3 and Mach3 Turbo Gillette's best manual razor for a close shave.

• The following products made by Gillette/Procter & Gamble contain PVC plastic in the packaging: • • • • • • • • • • Fusion Razor (20001906) Mach3 Razor Turbo Razor Fusion Razor Venus Vibrance Razor Gillette For women .Venus razor blade Gillette M3 Power razor blade Gillette Sensor 3 for women razor blade Gillette Venus divine razor blade Gillette m3 power nitro razor COMPANY SWOT ANALYSIS Strengths Market Leader Strong Brand Image Global Presence Aggressive Advertising Quality & Innovation Weaknesses Long Development Cycles Relatively Static Market Growth Heavy Dependence on High Street Retail Outlets Expensive Brand Maintenance 65 .

odor-fighting microcapsules to absorb odor and release a fresh. including clinically proven prescription-strength wetness protection. clean scent throughout the day and skin-conditioning ingredients to minimize irritation.Portfolio Range (Mach 3 etc) Demographic Changes Changing Societal Attitudes Consumer Brand Preference Demand for High Quality Use of JIT and ICT (e-com) New Production Technology Increased Grooming Sophistication New Competitors Cloning of Successful brands Increasing Buyer Power (Inventory De-stocking) Growth in Substitutes Own Label Fits Economic Downturn STRENGTH Gillette Clinical Strength is specially formulated to provide effective protection for the heaviest of sweaters and men who worry about excessive underarm perspiration. helps significantly reduce the 66 . Gillette Clinical Strength contains the highest level of active ingredient allowed without a prescription. The Triple-Protection Technology provides three unique layers of protection. It is less acidic than aluminum chloride (used in many prescription antiperspirants) and thus.

• • • • Vibrating razor with an extremely close shave smooth shave 5 blades taking off facial hair means less skin that can get in between the blades Close shave.Price positioning in some categories allows for low price 67 . -Integrated supply chain and well spread manufacturing units. very large numbers of SKU's with dispersed manufacturing locations. Gillette Clinical Strength was significantly less irritating than a prescription product containing aluminum chloride. well linked with business. -Distribution structure with wide reach.potential for skin irritation. In fact. WEAKNESSES Complex supply chain configuration. -Strong and well differentiated brands with leading share positions. durability. in clinical studies. -Strong R&D capability. -Access to Unilever global technology capability and sharing of best practices from other Unilever companies. -High quality manpower resources. -Ability to deliver Cost Savings. high quality coverage and ability to leverage scale. -Brand portfolio includes both global Unilever brands and local brands of specific relevance to India. -Consumer understanding and systems for building consumer insight.

Growing consumption in Out of Home categories. travel etc.Premium Price Build Global Product Branding 68 . Changes in fiscal benefits. resulting in lower share of wallet for FMCG. consumer durable. tea commodity etc. • BLADES & RAZORS STRATEGY Innovation through Research & Development • • Premium Brand .competition. Leveraging the latest IT technology. OPPURTUNITIES : • -Brand growth through increased consumption depth and frequency of usage across all categories. • • -Market and brand growth through increased penetration especially in rural areas. Spurious/counterfeit products in rural areas and small towns. High Social costs (housing. health and other welfare measures) in the plantation business. Grey imports. foodgrains & firewood. Aggressive price competition from local and multinational players. -Upgrading consumers through innovation to new levels of quality and performance. entertainment. THREATS Increased consumer spends on education. • • -Establishing HLL as a sourcing hub for Unilever companies in various countries. Unfavourable raw material prices in oils. Emerging Modern Trade for introduction of more up market Personal Care products.

Papermate) CUSTOMER RELATIONSHIP MARKET MIX 69 . US vs Europe) Reduction in Product Unit Costs Grow Razor Systems Segment Strategic Alliances (Suppliers and Distributors) Shedding Non-Core Businesses (E.g.• • • • • Build Strong Brand Loyalty Greater Efficiency at Lower Cost.g. Maintain Superior Growth in Market Share Build Shaving Systems Sub-Segment Invest in technology and product innovation FUTURE GILLETTE STRATEGIES • • • • • • • • High Branding/Quality .Premium Price Develop New Market Segments & Niches through R&D Maintain/Promote Strong Brand Loyalty Tailoring Demographic Targeting (E.

Product Strategy Gillette marketing mix depends mainly on the product and the product marketing. Gillette product marketing has to emphasize the benefits of unique combination of technological expertise and new innovation. The following are a few of the unique features that the Gillette Venus has to offer: -Unique comfort strips to provide protection against razor burn. RESEARCH METHODOLOGY OBJECTIVES OF THE PROJECT 70 . global perspective. This particular product outdoes all other female razor products as far as comfort is concerned. held and strengthened leadership positions through the Company's strategy of managing its business with a long-term. This demonstrated ability to generate longterm. Innovation is the key to our growth and the opportunity for continual growth. such as knees and ankles. than any envisioned by the Company's founder. but we are also leveraging a lot more in the packaging. alkaline battery and oral care businesses.The following contains the four elements of the marketing mix for the new Gillette Venus. and a worldwide presence far stronger. Gillette need to sell a sense of quality and comfort that will show in packaging. Johannesburg to Mexico City to Berlin. innovative products that embody meaningful technological advances and an immense manufacturing capability that produces billions of flawless. In the more than 100 years since the Company was founded. the modern traveler encounters a Gillette product portfolio far broader. profitable growth in a changing global marketplace rests on several fundamental strengths. Gillette has gained. From Boston to Bangkok. principally in the grooming. The shave bars flex around for more detail. fitting into more difficult areas. The Gillette Company today is the global market leader in nearly a dozen major consumer products categories. These include a constantly increasing accumulation of scientific knowledge in core businesses.

To study the present distribution channel of the P&G product in Delhi. 71 . LIMITATIONS OF THE PRESENT STUDY The present has following limitations.In Today’s competitive market. To evaluate the competitive technology vendor landscape that recommends best practice crm strategy and investment. To assess the potential returns available from crm. RATIONALE FOR THE PROJECT An evaluation of current and future trends in crm. 4. It also comprises of study about the process of crm activities. This research is also devoted regarding sales promotion for increasing sales of the P&G Company. To study the awareness about the CRM. every company wants to know the reasons how one can have the potential market. 3. The main objective is to have a core insight to the pre and post changes in crm implementation and problems faced during the course of implementation. offering critical success factors for creating and implementing customer focused strategies. To study the impact of this CRM on sales of retailers & wholesalers.investigates the tactics used to counter barriers to successful implementation. The said information will be much useful for devising sales promotion. 2. To study the concept of CRM. which factors enhance the sales of the FMCG product. The present study is conducted entitled “CRM ACTIVITY: A CASE STUDY OF GILLETTE BRAND OF P&G” The research objectives to be studied in this research are as follows: 1.

It resembles the architects blue print for a house. Some of the respondents left some questions unanswered and as such it was little difficult to draw and generalize the conclusion from them.It aids the scientist in the allocation of his limited resources by posing crucial choices – is the blue print to include experiments interviews observations.1. It is the blue print that followed in completing a study . Will be relevant to the problem. stimulation in or some combination of these? Are the method of data collection and the research situation to be highly structured? A research design is simply the framework or plan for a study used as a guide in collecting and analyzing data. 5. These results are interesting but they do not solve the basic problem is a common latent. The findings entirely depend upon the willingness & mental condition of the respondents. 2. 72 . the analysis of records. Thus a research design ensures that study 1. 3. Some of them want to hide the fact so they did not respond and participated in the survey wholeheartedly. Some of the respondents were that not much serious about filling the questioner. 4. measurement of data . It was somewhat difficult to get the questioner completely filled by the respondent as most of the times they were busy and could not give sufficient answer and sufficient information even though they have it and the information from respondents are very important for the research. It is the blue print for the collection. Some respondents were unable to understand the question due to various problems like language barrier MATERIALS AND METHODS Research design is the plan structure and strategy of investigation conceived so as to obtain answers to research question and to control variance.

Descriptive and Causal. As the outset may be noted that there are several ways of studying and tackling a problem there is no single perfect design. occupation. Different types of research design have emerged on account of the different perspective from which a research study can be viewed.2. It is particularly helpful in breaking broad. Various authors have classified research designs in different ways. sex. DATA COLLECTION Primary Data: - 73 . 3) Causal Research: As the name implies a causal design investigate the cause and effect relationship between two or more variables The type of research. which has been chosen for the present study. the researcher should not wait until he arrives at a unique and perfect research design. is exploratory research. As such. vague problem statements into smaller. a descriptive study may be necessary. Will use economical problem. 2) Descriptive Research: Descriptive studies are undertaken in many circumstances. education level. more precise sub problem statement. a frequently used classification system is to group research designs under three broad categories – Exploratory. When the researcher is interested in knowing the characteristics of certain group such as age. TYPES OF RESEARCH DESIGN 1) Exploratory Research: Research design the major emphasis is on gaining ideas and insights. or income. However.

question wording. type of questions. The questionnaires were prepared using very simple and non-technical words. The said questionnaire is attached in the appendix section.Primary data is collected through survey method. Designing the questionnaire is not easy job it will be formulated in carefully means which type of information to be collected. Survey method involves collecting data by administrating a structure or non-structure questioners. the questionnaire was short and to the point. To serve the wholehearted cooperation without wasting more time of respondents. sequencing and layout and presenting these all of things are designing in well manner The questionnaire design procedure follows following steps. To collect the relevant data for a research data will be collected in the form of questionnaire designing. Specify what information will be sought Determine type of the questionnaire and method of administration Determine wording of each question Determine forms & response to each question Determine consent of individual question Determine sequence of each question Determine physical characteristics of questionnaire Prepared for final data collection Fig: Questionnaire Design Steps Secondary Data: - Re-examine step 1-7 by testing questionnaire 74 .

This sample is considered to be the true representative of the entire universe and decided upon certain criteria. The sample size has been kept to 50 as it was considered large enough to reliable result. which allows all kind of elementary statistical calculation. For this purpose. The sample selection process requires the form of sample be specified. SAMPLE SIZE AND SELECTION PROCESS Once the researcher has clearly specified the problem and developed an appropriate research design and data collection instrument. 75 . the next step in research process is to select those element from which sample will be drawn. After tabulation the data was ready for calculations to draw necessary inferences. After the sample size is decided. After conducting the personal interview of the respondents the next step was to arrange the collected data finally coded and tabulated to obtain the results. researcher has subjectively decided which particular group will be part of the study. the next step was to meet the respondent personally and to collect data from them through personal interviews. The present study used MS Excel package for the purpose of tabulation. journal and Textbook. This data is collected from the related company website.Secondary data is required for collecting the information of the company the related information of the FMCG product. In a sample survey a small part of the entire population is subjected to the research. magazines.

While still 26% people still not aware about the Gillette Gillette need to focus to target 26% those people who doesn’t know about the Gillette .FINDING AND ANALYSIS 1 Had you heard about company Gillette from P&G? Awareness about the Gillette Yes No 74 26 Awareness about the Gillette No 26% Yes 74% Gillette India has a very old presence in world wide while judging this statement we did brief survey of 100 People and according to our out put the data 74% people are actually aware about the Gillette as a brand name and the Gillette . If Yes 76 . Customer satisfaction and loyalty would come if the customer aware about the Gillette ’s so effectively only 74% customer who knew very well what Gillette doing in the Indian market and what available is for the customer.

people got to know about the Gillette from various parameter. Once customer know about the company brand so for Gillette in my project effective people for the survey is 223 because they know about the Gillette ’s brand name. Recommendation to increase awareness among the customer for Gillette can be focused more to hoarding advertisement rather than the news paper also self research contributed maximum so Gillette brand awareness so Gillette increase to advertise on internet. there is various ways. 77 . like 23% people got to know about the Gillette through Hoarding while 28% people got to know from the advertisement that is doing by the company while 19 % people knew Gillette ’s brand through the self research and news paper is only effective by the 18%.2 How you came to know about this company? Awareness about the Gillette Newspaper By Friend Means of Advertisement Self Research Hoarding Retailers Awareness about the Gillete 40 17 62 42 52 10 Hoarding 23% Retailers 4% Newspaper 18% By Friend 8% Means of Advertisement 28% Self Research 19% How people got to know about the Gillette . book etc.

4 How would you rate services of the company? 78 . Recommendation about the Gillette would be 13% people rated Gillette as poor one so company need to focus on those area why people rate as a poor why they perceive that Gillette ’s quality is poor.3 How would you rate s of company? Customer satisfaction from Excellent Very Good Good Poor 34 76 85 28 Customer satisfaction from product Poor Excellent 15% 13% Good 38% Very Good 34% Out of 100 valuable customer for our survey it seems that 15% rated Gillette ’s as excellent in quality while 34% rated as very good experience that they have while using Gillette ’s and 38% people are rated as good to using Gillette ’s .

Customer satisfaction from Services Excellent Very Good Good Poor 50 67 57 49 Cu stomer satisfaction from Services Poor 22% Excelle nt 22% Goo d 26% Very Good 30% Recent survey conducted by the Business standard and it shows customer satisfaction also depends upon what is you sales after service strategy. 5 What is your overall opinion about the service provided? 79 . according to our survey about the Gillette 22% people rated Gillette as a excellent service provider while 30% rated it has very good sales after service support and 26% rated good for the service to Gillette ’s. The concern area for Gillette is 22% people who rated Gillette service as a poor one and not which is one of the area where customer are not satisfied so for the Gillette it need to be justify and fill the gap as soon as possible.

 Phone of live facility to take a brief about 7 What problem did you face while getting s serviced?  Employees are at times not having manner to talk  Fault occurrence after get repaired the 8. Did you find the s up to the standard or Marks as specified before purchase? 80 . 6 Did you have any suggestions to improve the services? Few Suggestions is  24*7 customer support  All India one warranty card  Better replacement if is not good. customer care. Some people says Gillette as a organization not having flexible service to the customer like 24*7 wise also some time they are arrogant to the customer. etiquette of the employee people are saying it is good company with providing day by day better service.According to our survey result overall customer satisfaction level from the various service like warranty.

9. Are you using other company are (Same type of s) simultaneously? Comparison with Yes 218 81 . While only 10% people are not satisfied the quality of Gillette .Standard Yes No 201 22 Product Standard No 10% Yes 90% Before purchase customer are very cautious about the quality and it’s standard in the case of Gillette about 90% people are happy with the kind of quality that they would received before purchasing the Gillette .

No 5 Comparison with Product No 2% Yes 98% Using Gillette with the other company which gives insight to know more about the competition level for the Gillette now we got very surprisingly result 98% people says yes while using Gillette they also using some other company . So kind of competition we can feel that Gillette has. Which quite less than the other favorable out put 82 . Only 2% people using Gillette.

10 Would you recommend company’s s to others? Recommendation to other Yes No 219 4 Recommendatio n to oth er No 2% Yes 98% Recommendation to other means customer buy the due to influenced by the others also which shows very beneficial for the company. Now move to other strata 2% only those people who doesn’t want to recommend Gillette to others 83 . 98% people who is using Gillette is ready to recommend others to use Gillette which is very positive sign for the customer.

The conclusions of the study were: • A Totally Satisfied Customer contributes 2. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 20. viewpoint is to consider CRM only as customer retention in which a variety of aftermarketing tactics is used for customer bonding or staying in touch after the sale is made. yet relevant. Another narrow.000 customer surveys conducted in 40 countries by Infoquest. and/or other marketing actors. maintain. and build up a network with individuals consumers and to continuously strengthen the network for mutual benefit of both sides. 84 . through interactive. individualized and value-added contacts over a period of time”. Shani and Chalasani define relationship marketing as “an integrated effort to identify. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers.CONCLUSION Before we begin to examine the conceptual foundations of CRM. it will be useful to define what is CRM. • A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer. by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts.6 times as much revenue to a company as a Somewhat Satisfied Customer. CRM is based on the premise that.

In some cases.• A Totally Dissatisfied customer decreases revenue at a rate equal to 1. CRM is defined as: 85 .8 times what a Totally Satisfied Customer contributes to a business. As several research studies have shown not all customers are equally profitable (Infact in some cases 80% of the sales come through 20% of the customers). An important facet of CRM is “customer selectivity”. the objective of a company is not to really prune its customer base but to identify appropriate customer programs and methods that would be profitable and create value for the firm and the customer. The company must therefore be selective and tailor its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs. Hence. it could even lead to “ outsourcing of some customers” so that a company better utilize its resources on those customers it can serve better and create mutual value. However. • By reducing customer defection (by as little as 5%) will result in increase in profits by 25% to 85% depending from industry to industry.

 The concern area for Gillette is 22% people who rated Gillette service as a poor which is one of the area where customer are not satisfied so for the Gillette it need to be justify and fill the gap as soon as possible. 86 .RECOMMENDATIONS Some of the Recommendation for Gillette that I analyze after making my project report is following below. book etc.  Recommendation about the Gillette would be 13% people rated Gillette product as poor company need to focus on those area why people rate as a poor why they perceive that Gillette product’s quality is poor.  Out of our 100 sample size 26% people still not aware about the Gillette product so Gillette need to focus on more product awareness because it is the first and foremost thing for any organization  Recommendation to increase awareness of customer for Gillette company my be focused more to hoarding advertisement rather than the news paper also self research contributed maximum awareness to the Gillette brand so Gillette increase to advertise on internet.

87 . it is to be known that advertisement and promotional activities plays a vital role in influencing the purchasing decision of the product so P&G should invest on advertisement. • • • P&G should more concentrate on facility like on time visit. The company should promote the Golden Store Scheme to all categories of shops. which can help company to build up strong position in market and to increase the sale of products. The company should keep watch of the competitors schemes. • As. replacement.FUTURE PROSPECTS From the data interpretation and conclusion there are some suggestion.

Wishwa Prakashan a Division of Wiely Eastern Limited Pune. 4. Philip Kotler and kenin Lane Keller. “ Marketing Management” Twelfth edition Prentice Hall Of India PVT.p&g) 6. C.R.-110001. 88 .google. second edition. new Delhi-110001. 3.com http://wikipedia. 5. Kothari. http://www.com HARISH KUMAR(sales manager.p&g. 2.BIBLIOGRAPHY 1. “ Research Methodology”.org/wiki/pune http://www. LTD New Delhi.

(d) Others (Specify) _________________ 3 How would you rate company? (a) Excellent (c) Good 4 (b) Very Good (d) Poor How would you rate services of the company? (a) Excellent (c) Good (b) Very Good (d) Poor 5 What is your overall opinion about the service provided? __________________________________________________________________ __________________________________________________________________ 6.QUESTIONNAIRE 1 Had you heard about company Gillette from P&G? (a) Yes If Yes 2 How you came to know about this company? (a) By Newspaper (b) By Friend (b) No (c) Other Means of Advertisement. What problem did you face while getting p&g serviced? __________________________________________________________________ __________________________________________________________________ 89 . Did you have any suggestions to improve the services? __________________________________________________________________ __________________________________________________________________ 7.

8. Did you find the products of p&g up to the standard or Marks as specified before purchase? (a) Yes (b) No (Specify)___________________ 9. Would you recommend company’s s to others? (a) Yes (b) No 90 .

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