Professional Documents
Culture Documents
By
Shri J.P. Dash Chief Manager, Marketing National Aluminium Company Ltd
July, 2009
Shri J. P. Dash, Chief Manager, Marketing National Aluminium Company Ltd. Bhubaneswar Date: July 08, 2009
Abstract
National Aluminium Company Ltd truly a national venture to take the country forward in the world Aluminium market, was incorporated on Jan 7 ,1981.NALCO is today a major player in the Alumunium Industry in our country.In a major leap forward, NALCO has not only contributed to Indias need for self sufficiency in Aluminium ,but has also given the technological edge in making this strategic metal at the best of world standards ,there by increasing exports and earning valuable foreign exchange by competing in the global market. Thus NALCO heralded a new era of Aluminium making in the country as well as in the world acquiring the 5th position. Today, NALCO has emerged as the largest integrated bauxite-alumina-Alumunium complex in Asia ,enabling India to witness a quantum jump in Alumina and Aluminium production. But the very success of any enterprise depends largely on its ability to satisfy and retain its customers. Successful enterprises know very well what the key drivers of customer satisfaction are and the areas that will have the greatest impact in improving the customers overall perception of the product or service. NALCO has its Corporate Office at Bhubaneswar and has four regional offices at Delhi, Mumbai, Kolkata and Chennai. This study has been conducted on the Customer Satisfaction evaluation of those customers of NALCO who deal directly with the Corporate Marketing Department i.e. those customers who buy through the corporate office in Bhubaneswar. This study also gives an idea of the customer satisfaction strategy followed by NALCO and how it carries out its own in-house customer satisfaction surveys. This project aims at finding answers to four major questions: Whether the customers are satisfied with NALCO
Which parameter in the product and services offered by NALCO is perceived by the customers to be most important
Whether customers are satisfied with the resolution of complaints as done by NALCO
What are the views of the customers regarding the method of customer satisfaction surveys conducted by NALCO
Acknowledgement
I wish to express my sincere gratitude to Mr. J.P.Dash, Chief Marketing Manager, NALCO for giving me this opportunity to have an enriching learning experience in this company and also for his keen interest, guidance, continuous encouragement, support and help throughout the period of the project. His expertise has been extremely rewarding and has provided an opportunity for me to become accustomed to the corporate world and take my knowledge beyond the boundaries of the classroom. I also wish to extend my gratitude to Ms.Sumita Sahai and Mr.Gautam Mohapatra from the Marketing Department of NALCO and to Mr.T.S.Rao from the Dispatch Section of Smelter Plant, Angul for their never ending support during the course of the project. Their guidance has been extremely valuable, both in terms of knowledge and experience. My special thanks to the staff of NALCO for their cooperation, support and camaraderie shown towards a trainee.
Table of Contents
List of Figures List of Tables List of Appendices List of Abbreviations I Introduction 1.1 Industry Profile 1.1.1 Global Scenario 1.1.2 Indian Scenario Company Profile Page 5 6 7 8 9 10 10 16 19 24 24 25 26 27 28 28 29 29 30 30 31 32 33 34 34 34 35 35 36 37 38 39 50 51 52 53
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1.2 2
Research Problem 2.1 2.2 2.3 2.4 Need For the Study Objectives of the Project Research Methodology Limitations
Customer Satisfaction 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 An Introduction Major Customers of NALCO Customer Satisfaction Strategy Overview Tools For Tracking Customer Satisfaction Strategy Customer Complaints 3.5.1 Customer Complaint Resolution in Domestic Market Measuring Satisfaction Strategy How NALCO gives importance to Customer Satisfaction Customer Satisfaction Index 3.8.1 3.8.2 3.8.3 3.8.4 3.8.5 3.8.6 3.9 3.9.1 3.9.2 Initial Calculation of weightage Determination of CSI Review of CSI CSI Improvement Study of CSI for half year ending June 2008 Study of CSI for half year ending December 2008 Analysis of the Survey Findings from the Survey
4 5 6
Appendices
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List of Figures
Figure No. 1 2 3 4 5 6 7 8 9 10 11 Description Break-up of Aluminium Consumption Geographically Growth in worlds Aluminium demand Global Metal Balance for Aluminium Aluminium Inventory and Price Trend Industry-wise consumption of Aluminium in the world Industry-wise consumption of Aluminium in India Production and consumption scenario in Indian Aluminium Industry Various Products of NALCO Trend Graph of Customers with CSI less than the benchmark CSI for half year ending June 08 CSI for half year ending December 08 Page 12 13 14 15 15 19 20 25 37 38 39
List of Tables
Table No. 1 2 3 4 5 6 7 8 9 10 11 Description Per Capita consumption of Aluminium in different countries Leading Aluminium producing companies Aluminium metal balance for India Integrated complex of NALCO NALCO The year at a glance Various products of NALCO Region-wise average CSI for half year ending June 08 Product-wise average CSI for half year ending June 08 Region-wise average CSI for half year ending December 08 Product-wise average CSI for half year ending December 08 Customers feedback table Page 16 17 20 21 24 25 38 38 39 39 41
List of Appendices
Appendix No. 1 2 3 4 Description Location of Alumina Plants in India Location of Aluminium Plants in India Half-yearly customer feedback report of NALCO Customer Satisfaction survey questionnaire Page 56 57 58 60
Abbreviations
Bharat Aluminium Company Limited Customer Satisfaction Index Hindustan Aluminium Company Limited London Metal Exchange Madras Aluminium Company Limited Mega Watt Metric Tonne National Aluminium Company Limited New York Metal Exchange Tonnes per Year
1. Introduction
Aluminium was not "discovered" until 1808 (about 200 years ago) although early civilizations used aluminium-bearing clays to make pottery and aluminium salts were used in making dyes and medicines. In 1854 people learnt how to produce aluminium commercially. Today, one can not live without it! Aluminium is a metallic element with the symbol Al. Aluminium - in its metallic form - does not exist naturally. It is found only in combination with other minerals in the form of silicate and oxide compounds which make up about 8 per cent of the earth's crust. The primary ore mineral of aluminium is bauxite. Bauxite contains all kinds of impurities - primarily metals such as iron - but consists of 45 percent to 60 percent aluminium oxide, or alumina. Aluminium can be very strong, light (less than one third the specific gravity of steel, copper or brass), ductile, and malleable. It is an excellent conductor of heat and electricity. Polished aluminium has the highest reflectivity of any material - even mirror glass. It can be cast, rolled or extruded into an infinite variety of shapes. It has unique barrier properties as a packaging material, it resists corrosion and it can be recycled again and again and again, with no loss of quality or properties. Mixed with small, often minute, quantities of other materials such as iron, silicon, zinc, copper, magnesium, tin, titamium, lithium, chromium, tungsten, manganese, nickel, zirconium and boron, it is possible to produce an array of alloys with very different physical properties. A total of about 29 million tons of aluminium is needed to meet worldwide demand each year. About 22 million tons of the total is new aluminium and 7 million tons is aluminium scrap that is recycled for reuse. The recycled material is equal to about 25% of the total amount of aluminium used worldwide.
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The overall Aluminium demand is expected to rise by just 2.6% for CY09E as against 3.9% growth for CY08E and 7.4% growth for CY07. Global demand growth for aluminium has reduced sharply from its peak of 7.4% y- o-y in CY07 to 3.9% y-o-y in CY08E and is expected to reach a new low 2.6% y-o-y in CY09E. China, which accounts for 33% of global aluminium trade, is witnessing fall in demand from 39% y-o-y growth in CY07 to 9% y-o-y growth in CY08E. While, the aluminium demand from rest of world has also shown miniscule improvement over the pervious year. But, China still has drag effect on the rest of the world because it was China that had driven about 80% of the incremental demand in CY07. Global demand for rolled extruded products is projected to reach nearly 31.8 million tons by 2012, registering a CAGR of 8.5% for the period 2008-2012. The worldwide market for flat surfaced extruded products is estimated to cross 8.7 million tons in 2008-09.
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Power shortage and transportation are the key bottlenecks that are currently undermining the profitability of the global aluminium industry. In addition, increasing prices of raw material and energy are pressurizing margins and are creating problems in production, cost reduction , and operation of the aluminium. The aftermath of global slowdown has led to built up of inventory position to upwards of 2 mn tonne in CY08; this in turn resulted in drastic fall in price of aluminium to $ 1500/tonne in Dec 08. A similar surplus of 4.6 mn tonne is expected in CY09. In order to rationalize the current scenario of increase in inventory position and fall in price of aluminium have resulted in massive production-cuts and delay in capex plans by many companies across the world. The total global aluminium production- cuts, which amount to 6.82 mn tpa, in which China accounts for 4.05 mn tpa of aluminium production-cuts and balance by rest of the world has been undertaken. It is anticipated that such action of production-cuts and capex plans delays across the world will help in filling the gap between demand and supply situation. Thus, this may enable the world aluminium price to reach at its rationale level.
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Prices have fallen from $3305 per ton in July 2008 to $ 1254 per ton in March 2009. The price of Alumina has drastically fallen from all time high of $ 435/tonne in July 08 to as low as $ 225/tonne in Dec '08. The current Aluminium prices are below the cost of production of almost 70% of the producers in the world. LME and NYMEX are the important international markets that provide direction to the aluminium prices.
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Construction, Transport and Packaging industry accounts for about 65% of industry wise consumption of Aluminium while Europe, N. America and China contribute 71% of the annual consumption. Automobile and construction industries along with packaging industry are experiencing recession due to the global economy slowdown. So, slump in these industries have directly impacted the demand of aluminium sector at large. Further, to worsen the situation there has been a significant decline in prices of aluminium.
Country Switzerland Japan Germany USA Sweden Italy Australia France UK Venezuela Malaysia Thailand India
Consumption in kg 32.5 30.9 30.1 26.9 25.3 20.9 17.9 17.7 11.1 8.2 2.4 0.9 0.7
Dynafond (FRANCE) FENIS ALUMINYUM (TURKEY) Global Alumina Products Corporation (CANADA) Grupa Kety SA (POLAND) Henan Zhongfu Industry Co., Ltd. (CHINA) Hindalco Industries Limited (INDIA) Indian Aluminium Company, Limited (INDIA) International Aluminum Corporation (UNITED STATES) Jaan Cherng Technological Company Ltd. (TAIWAN) Jiaozuo Wanfangluminum (CHINA) Kaiser Aluminum Corporation (UNITED STATES) Klil Industries Ltd (ISRAEL) LB Aluminium Berhad (MALAYSIA) Lanzhou Aluminium Co., Ltd (CHINA)
National Aluminum Company Limited(INDIA) Ningbo Fubang Jingye Group Co., Ltd. (CHINA) Ocean Grand Holdings Limited (HONGKONG) P.A. Resources Bhd MALAYSIA) PMB Technology Berhad (MALAYSIA) PT Alakasa Industrindo Terbuka (INDONESIA) PT Alumindo Light Metal Industry Terbuka (INDONESIA) Sam-A Aluminium Company Limited (KOREA (SOUTH)) Sanmenxia Tianyuan Aluminum Company Limited (HONG KONG) Shandong Aluminium Industry Company Ltd (CHINA) Shandong Nanshan Industrial Company Limited (CHINA) Shanxi Guanlu Co Ltd (CHINA) Top High Image Corp. (TAIWAN) United Alloy-Tech Company Ltd (TAIWAN) Xinjiang Joinworld Co., Ltd. (CHINA) Xxentria Technology Materials Co Ltd (TAIWAN) Ye Chiu Metal Smelting Berhad (MALAYSIA)
Alco Hellas SA (GREECE) Alcoa Inc. (UNITED STATES) Aleris International, Inc. (UNITED STATES) Aloymil-Milonas Aluminium Industry SA (GREECE) Aluar Aluminio Argentino SA (ARGENTINA) Aluminium Company of Malaysia Berhad (MALAYSIA)
Aluminum Corporation of China Limited (CHINA) Capral Aluminium Limited (AUSTRALIA) Catcher Technology Company (TAIWAN) Century Aluminium Company (UNITED STATES) Chin Foh Berhad (MALAYSIA) Choi Aluminum Company Limited (KOREA (SOUTH)) Comat Industrial Ltd (SINGAPORE)
Madras Aluminium Company Ltd (INDIA) Maxxam Inc. (UNITED STATES) Midas Holding Limited (SINGAPORE)
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Indian Aluminium players have not remained untouched by the current global scenario that prevails in the aluminium sector Madras Aluminium Company Ltd, which belongs to Madras Aluminium Company Ltd, which belongs to Vedanta Group, has temporarily shut down its 40,000 tonne of aluminium production. MALCO's marginal cost to produce a tonne of aluminium is $1600/tonne, which is above the current LME price at which aluminium is trading, making it difficult for Malco to continue production. The core players such as Hindalco and Nalco are producing at an average marginal cost of $1450/tonne and $1500/tonne respectively. Both these companies are just able to keep their neck above the water and do not anticipate any production-cuts in near future as long as LME Aluminium is above $1500/tonne. Also, these companies are going ahead with their capex plans for FY09E due to expectations of sustained domestic demand. As per the current capex plans, the Aluminium production capacity of India will double to 2.7 mn tone per annum by FY12E and 3.2 mn tonne by FY13E. Indian aluminium players- Hindalco, Nalco & Sterlite have exhibited 98% as ratio of sales to production for total Indian aluminium industry in H1 FY09E thus reflecting the strong domestic demand. Total Indian industry's production has increased by 8%, while sales volume has registered a jump of 12% as compared to pervious year of the same half year. Indian aluminium industry is highly consolidated and it is a price taker- not a price marker. Indian Aluminium Industry is priced at LME plus a small premium. Most of players in this industry have an average cost of production of approximately $1500/tone.
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After discovery of 1000 million tones of Bauxite reserves in the Eastern Ghats, the Government of India on March 28, 1978, authorized Aluminium Pachiney of France to prepare a feasibility report on the industrial exploration of Bauxite for the establishment of an integrated Aluminium complex. The result of this study led to the Koraput District in Orissa. NALCO was incorporated in 1981 as a public sector unit. The newly founded NALCO signed an agreement of collaboration with Aluminium Pechiney, the world leader in this field for incorporation of technical know-how to set up Asias largest integrated Aluminium Complex. NALCO is considered to be a turning point in the 50 years old history of Indian Aluminium Industry. In a major leap forward, NALCO has not only addressed itself to the countrys need for self sufficiency in aluminium, but has also given the country the technology edge in making this strategic metal on the best of the world standards. NALCO was set up as an independent, fully owned Central Government undertaking on 7th January 1981 to exploit a part of the large deposits of bauxite discovered in the East Coast. It started its commercial production in the year 1987-88. With its consistent track record in capacity utilization, Technology absorption, Quality assurance, export performance, servicing of loans, internal resource generation and posting of profits, NALCO is an example of Indias industrial capacity. Today as an ISO-9000 company, NALCO has emerged as the largest integrated Bauxite-Alumina-Aluminium Complex in the Asia enabling India to witness a quantum jump in alumina and aluminium production. NALCO for the first time created exportable surplus in alumina and helped India to focus on its massive bauxite resources in the east coast estimated at 1600 million tones. The integrated complex has 5 segments i.e. bauxite mines, alumina refinery, alumina plant, captive power plant, port facility. Today NALCO is one of the Navaratna Company of India. The integrated complex as a whole:
Production unit Bauxite Mines Alumina Refinery Aluminium plant Captive Power Plant Port Facility
Original Capacity 24,00,000 TPY 8,00,000 TPY 2,30,000 TPY 720 MW 3,75,000 TPY Alumina Export & 1,46,000 TPY Caustic Soda import
Expanded Capacity 48,00,000 TPY 15,75,000 TPY 3,45,500 TPY 960 MW 9,12,000 TPY Alumina Export & 1,46,000 TPY Caustic Soda import
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Company Vision
To be a reputed global Company in the Metals and Energy sectors
Company Mission
To achieve growth in business with a global competitive edge providing satisfaction to the customer, employees, shareholders and the community at large
Corporate Goals
To ensure a healthy return on investment by maximizing operational efficiency, capacity utilization and productivity; To continually improve and redesign systems, processes and practices in order to ensure error prevention and response time; To adopt internal customer focus as a means to external customer satisfaction; To treat human resource as a key to quality excellence and ensure development, involvement and satisfaction in employees; To ensure high quality of inputs through proactive interaction with suppliers; To meet obligations towards the society as a responsible corporate citizen; To provide value for money to all stake holders; To follow ethical business philosophy at all times.
Corporate Objectives
To maximize capacity utilization. To optimize operational efficiency and productivity. To maintain highest international standard of excellence in product quality, cost efficiency and customer service. To provide steady growth in business by technology up-gradation, expansion and diversification. To have global presence and earn foreign exchange. To maintain leadership in domestic market. To maximize return of investment.
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To develop a strong R & D base and increase business development activities. To promote result oriented organizational ethos and work culture that empower employees and helps realization of individual and organizational goals.
To maximize international customer satisfaction. To faster high standards of health, safety and environment friendly products. To participate in peripheral development of the area.
The various units that have been set up since 1985 include:-
Bauxite mine:
On Panch Patamali hills of Koraput District in Orissa, fully mechanized open cast mine of 24, 00,000 TPY capacities is in operation since 1985, serving feed stock to alumina refinery located on the foothills. The capacity has been expanded to the 48, 00,000 TPY.
Alumina refinery:
It is in operation since 1986, the 8, 00,000 TPY alumina refinery is located in the picturesque valley of Damanjodi. The capacity has been expanded to 15,75,000 TPY which was dedicated to the nation by the Honble minister of Coal and Mines, Sri Ram Vilas Paswan on 18.04.2002 it was two parallel streams of 4,00,000 TPY capacity each being designed to: Provide 4, 00,000 tons of alumina to the companys smelter at Angul. Export the balance 4, 00,000 tons to overseas markets through Visakhapatnam Port. The technological features of alumina refinery are: o Low temperature atmospheric pressure digestion process. o Energy efficient fluidized bed calciness of 2x14, 000 Tpd.
Aluminium Smelter:
A 3,45,000 TPY capacity aluminium smelter is located at angul in Orissa. Based on energy efficient state of art technology and smelting pollution control, the smelter is in operation since 1987. The capacity was expanded to 3, 45,000 TPY and was completed by the end of 2003.
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Close to the aluminium smelter, a captive power plant of 960 MW. Capacity has been established to feed this smelter. The capacity is being expanded to 1200 MW. The salient features are: Microprocessor based burner management system for optimum thermal efficiency. Computer controlled data acquisition system for on line monitoring. Automatic turbine runs up system. Specially designed barrel type high pressure turbine Waste disposal of ash
Port Facility:
On the inner harbor of Visakhapatnam port on the Bay of Bengal, NALCO has mechanized storage and ship handling for export of alumina in bulk. The salient features are: Mechanized silo storage facility of 2x25, 000 tons capacity Mechanized mobile ship leader of 2200 TPY capacity. Capacity to handle maximum ship size 35, 000 Dwt.
Stockyards:
Customers of NALCO can buy Aluminium directly from the smelter plant or from the nine stockyards that are there across the country. The nine stockyards are in Baddi, Bhiwandi, Bangalore, Chennai, Faridabad, Jaipur, Kolkata, Silvassa and Vizag. It is to be noted that the prices of Aluminium bought from the smelter are different from those when bought from the stockyards.
Expanding capacity:
Nalco had embarked on massive expansion plan taking the capacity of Alumina refinery to 2.1 mn tonne (an increment of 0.525 mn tonne) and Aluminium Smelting of 0.46 mn tonne (an increase of 0.12 mn tonne) in its 2nd phase of expansion which is expected to be completed in Dec.08 at an expenditure of Rs 40 bn. With enhanced capacity Nalco would be in position to cash on the rising domestic demand. The company is moving forward with other domestic expansions viz. third phase at an expense of Rs 60 bn taking the refinery capacity to 3 mn tone and smelting capacity to 0.58 mn tonne by Dec. 2011, 1.4 mn tonne refinery complex at Vizag at capex of Rs 70 bn, 0.5 mn tonne smelting capacity at Jharsuguda at expense of Rs 85 bn along with 1260 MW power plant. Nalco has also undertaken 2 overseas projects viz. 0.5 mn tpa Smelter with 1250 MW power plant at Indonesia at the cost of Rs 140 bn and 0.33 mn tpa Smelter in Iran at expense of Rs 80 bn.
2007-08
2006-07
Export Turnover Gross Sales Profit Before Tax Profit After Tax Earnings per Share Book Value per share Dividend
The various products of NALCO are : Aluminium Alumina & Hydrate Ingots Sows Billets Wire Rods Cast Strips Calcined Alumina Alumina Hydrate
Zeolite A Special Products Rolled Product Special Hydrate / Alumina Aluminium Rolled Products
Fig 8 : Various Products of NALCO (a) Ingots (b) Sows (c) Billets (d) Wire-rods (e) Cast Strips
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To evaluate Satisfaction levels of customers on the following grounds o o o o Overall Customer Satisfaction Complaint Resolution Customer Satisfaction Surveys conducted by NALCO Most important parameter in the products and services offered by NALCO
The customers were mainly from the state of Orissa but there were also few others who were from neighbouring states. Primary data was collected through questionnaires, telephonic interviews and personal interviews. Those customers who were located in Bhubaneswar and the neighbouring city of Cuttack were interviewed personally. The remaining customers were either interviewed over telephone or questionnaires were sent to them by email. Secondary data was collected from official manuals, journals, metal bulletin and company website. The data collected were presented in the form of bar graph, pie chart, line graphs and other graphs. They were processed and analyzed and the results were interpreted. The findings were reported and suggestions were given to the organization.
2.4. Limitations
The present study is subjected to following limitations : The sample was restricted to 14 respondents (customers), which may restrict the scope of study The scope of study is restricted only to the customers who buy through the Corporate Marketing Department. Therefore this will not be representative of the whole set of customers Due to their busy schedule some customers did not give response to all the questions in the questionnaire and some did not respond at all Due to the time constraints all the customers were not covered.
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The satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations , the customer is dissatisfied. If the performance matches the expectations , the customer is satisfied. If the performance exceeds the expectations, the customer is highly delighted. Many companies aim for high customer satisfaction, because the customers who are just satisfied find it better to switch to other companies when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bonding with the brand. The result is high customer loyalty. Xeroxs senior management believes that a very satisfied or delighted customer is worth ten times as much to the company as a satisfied customer. A very satisfied customer is likely to stay with Xerox many more years and buy more than a satisfied customer will.
METAL POWER COMPANY LTD SUNDARAM CLAYTON LTD INDIA PISTONS LTD ORDNANCE FACTORY AMBAJHARI HINDUSTAN AERONAUTICS LTD BHILAI STEEL PLANT ROURKELA STEEL PLANT VISAKHAPATNAM STEEL PLANT BOKARO STEEL PLANT
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A customer-centered organization makes it easy for customers to register suggestions and complaints. Some customer-centered companies establish hotlines with toll free numbers. Companies are also using websites and e-mails for quick two-way communication
Ghost Shopping:
Companies can have people to pose as potential buyers to report on strong and weak points experienced in buying the companys and competitors products. These mystery shoppers can even test how the the companys sales personnel handle various situations.
element in detail, customers would face a huge amount of questionnaire. The company must also realize that two customers can report being highly satisfied for different reasons. One may be easily satisfied most of the time and other might be hard to please but was pleased on this occasion. Now it can be measured through CSI ( Customer Satisfaction Index ). Improving Customer Satisfaction. Once a Customer Satisfaction Measurement program is in place Customer Satisfaction research is not an end unto itself. The purpose in measuring Customer Satisfaction is to se where a company stands in this regard in the eyes of its customer, thereby enabling improvements in products and services which will lead to higher satisfaction levels. The research is just one component in the quest to improve Customer Satisfaction. There are many others including: Top Management commitment Linking of Customer Satisfaction scores with employee and management monetary incentives Recognition of employees who contribute to Customer Satisfaction Identification, measurement and tracking of operational variables which drive satisfaction scores Customer-based improvement goals Plans for improving operational variables Incorporation of Customer Satisfaction skills into employee training programs Measurement of and plans for improvement of Customer Satisfaction Changes in corporate hiring practices Top Management, through its actions, must show that Customer Satisfaction is important to it. This can be done in several ways. Acknowledging areas where the company needs to improve Allocating appropriate resources to the improvement of Customer Satisfaction Involvement of management and employees in the development of plans for customer satisfaction improvement Linking management bonuses to satisfaction scores Clear and frequent communication of what is being done to improve Customer Satisfaction
Service is everyones business; hence not only theyre who work directly with the customers, but also everyone else within the company need to be trained on customer service. In case of NALCO, these factors are well satisfied In its Mission statement, NALCO has clearly specified that its mission is to achieve growth in business with global competitive edge providing satisfaction to customers, employees, shareholders and community at large. Hence the importance of Customer Satisfaction is clearly understood. In one of NALCOs objectives, it has clearly been mentioned , To maintain highest international standards of excellence in product quality, cost, efficiency and Customer Satisfaction In its Quality policy, NALCO has given importance to Quality, which it aims will form the core of their business philosophy : Meeting the needs and wants of Customers.
value categories / factor for various product segments are calculated through feedback from the customers.
Fig 9 : Trend Graph of Customers having CSI < 0.62 & < 0.75 from Dec 06 & < 0.86 from June 08
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The region-wise average CSI for half year ending June 2008 is shown below. Region Wise East South West North Corporate Marketing Total Average Region Average 0.911 0.851 0.932 0.943 0.891 0.906
Table 7 : Region-wise average CSI for half year ending June 2008
The product-wise average CSI for half year ending June 2008 is shown below. Product Wise Billet Ingot Sows Wire Rod Total Average Product Average 0.864 0.921 0.912 0.925 0.906
Table 8 : Product-wise average CSI for half year ending June 2008
.
Fig 11 : CSI for half year ending Dec 08
The region-wise average CSI for half year ending December 2008 is shown below. Region Wise East South West North Corporate Marketing Total Average Region Average 0.922 0.923 0.902 0.948 0.961 0.931
Table 9 : Region-wise average CSI for half year ending December 2008
The product-wise average CSI for half year ending June 2008 is shown below. Product Wise Billet Ingot Sows Wire Rod Total Average Product Average 0.924 0.929 0.951 0.921 0.931
Table 10 : Product-wise average CSI for half year ending December 2008
The CSI in the western region has gone down slightly. Out of the customers who have CSI less than the benchmark, most have given no non-credit sales as one of the reasons of dissatisfaction
3.9. Customer Satisfaction Survey Conducted For Customers Coming Directly Under Coprporate Marketing
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The CSI method of estimating customer satisfaction is an in house survey conducted by NALCO. The survey which was conducted as part of the summer internship is an independent one and it includes only customers which come directly under the Corporate Marketing head. The customers surveyed were mainly from Orissa with exception of few who were from other states. The questionnaire is attached as Appendix 4. Some of the customers surveyed were : OEL Extrusions Ltd Gulf Oil Corporation Ltd Jaidurga Metals Pvt Ltd Alco Industries Pvt Ltd S.K. Aluminium Industries Pvt Ltd Bhusan Power & Steels Shree Bajrangbali Metal Inds Rourkela Steel Plant Maa Budhi Metal Ind Ganapati Aluminium Industries OSIC B.P. Entreprises OCL India Ltd Binayak Aluminium Ltd Bhilai Steel Plant Bokaro Steel Plant
The analysis is mainly classified into four categories. Overall Satisfaction Level of Customers Importance of the various parameters as perceived by customers Satisfaction related to the Complaint Resolution Customers views regarding current method of customers satisfaction surveys conducted by NALCO
No. of Customers to whom feedback forms sent No. of responses received Response in %
15 10 66.67 %
A. Customers were asked questions which helped us find out whether they were satisfied with NALCO. Below are the graphical representations of some of the responses received. How satisfied are you with NALCO? Response Highly Satisfied Slightly Satisfied Neither Satisfied nor Dissatisfied Slightly Dissatisfied Highly Dissatisfied Total Frequency 10 0 0 0 0 10 Percentage 100 0 0 0 0 100
100 80 60 40 20 0 Highly Satisfied. Slightly Satisfied. Neither Satisfied nor Dissatisfied Slightly Dissatisfied Highly Dissatisfied.
How likely is it that you will do business with NALCO again in the future? Response Frequency
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Percentage
Highly Likely. Slightly Likely Neutral Slightly Unlikely Highly Unlikely. Total
1 00 80 60 40 20 0
10 0 0 0 0 10
100 0 0 0 0 100
Neutral
Slightly Unlikely
Highly Unlikely.
recommend NALCO to others? Response Highly Likely. Slightly Likely Neutral Slightly Unlikely Highly Unlikely. Total Frequency 10 0 0 0 0 10 Percentage 100 0 0 0 0 100
100 80 60 40 20 0 Highly Likely. Slightly Likely Neutral Slightly Unlikely Highly Unlikely.
How satisfied are you that the people at NALCO showed interest in you as an individual / treated you as a valued customer? Response Highly Satisfied Frequency 8
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Percentage 80
Slightly Satisfied Neither Satisfied nor Dissatisfied Slightly Dissatisfied Highly Dissatisfied Total
100 80 60 40 20 0 Highly Satisfied. Slightly Satisfied.
1 1 0 0 10
10 10 0 0 100
Slightly Dissatisfied
Highly Dissatisfied.
Compared to other companies, the prices of NALCO are? Response Higher About the same Lower Do not know Total Frequency 0 1 9 0 10 Percentage 0 10 90 0 100
How satisfied are you with the clarity of information or advice provided by NALCO? Response Highly Satisfied Slightly Satisfied Frequency 3 7
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Percentage 30 70
0 0 0 10
0 0 0 100
Slightly Dissatisfied
Highly Dissatisfied.
How satisfied are you with the time taken by NALCO to respond to queries? Response Highly Satisfied Slightly Satisfied Neither Satisfied nor Dissatisfied Slightly Dissatisfied Highly Dissatisfied Total
100 75 50 25 0 Highly Satisfied. Slightly Satisfied. Neither Satisfied nor Dissatisfied Slightly Dissatisfied Highly Dissatisfied.
Frequency 5 5 0 0 0 10
Percentage 50 50 0 0 0 100
How would you rate your overall relationship with NALCO, considering all your experiences with them so far? Response Excellent Very Good Frequency 4 6
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Percentage 40 60
0 0 0 10
0 0 0 100
VeryGood
Good
Average
Poor
B. The second part of the analysis is finding out the most important parameter as perceived by the customers.In order to find out which is most important to them, customers were asked to rate different parameters according to their perceived importance. The parameters are Quality of the product, Timeliness of delivery, Customer Service, Price and Merchandising options. These parameters were to be ranked from 1 to 5. For any parameter which was ranked 1st, it was assigned 5 points. Similarly parameters ranked 2nd were given 4 points and so on. The findings were as follows:
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Quality of Product 39
Customer Service 20
Timeliness of delivery 42
Merchandising Options 24
From the above, it is found out that customers give the most importance to the price of Alminium, closely followed by the timeliness of delivery.
C. There are times when certain issues arise during or after a deal like issues regarding payment, issues related to delivery , issues related to the return of goods purchased (which is very rare ) etc. The feedback of the customers was sought regarding their past experiences in such situations. The third part of the analysis was regarding the satisfaction of the customers as far as complaint resolution is concerned. Ease of contacting NALCO to complain
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Frequency 3 7 0 0 0 10
Percentage 30 70 0 0 0 100
VeryGood
Good
Average
Poor
Attention given to the complaint Response Excellent Very Good Good Average Poor Total
100 90 80 70 60 50 40 30 20 10 0 Excellent VeryGood Good Average Poor
Frequency 2 8 0 0 0 10
Percentage 20 80 0 0 0 100
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Speed with which NALCO dealt with the issue Response Excellent Very Good Good Average Poor Total
100 90 80 70 60 50 40 30 20 10 0 Excellent VeryGood Good Average Poor
Frequency 1 7 2 0 0 10
Percentage 10 70 20 0 0 100
The final resolution/outcome Response Excellent Very Good Good Average Poor1 00 Total 90
80 70 60 50 40 30 20 10 0 Excellent VeryGood Good Average Poor
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Frequency 1 7 2 0 0 10
Percentage 10 70 20 0 0 100
D. As we have already mentioned, NALCO undertakes it own Customer Satisfaction Survey. A part of the survey was regarding the Customer Satisfaction Survey that is conducted by NALCO. The third part of the analysis is to find out whether the customers where satisfied with the in-house Customer Satisfaction Survey that NALCO conducts. The findings were as follows: Whether Satisfied with the way NALCO conducts its Customer Satisfaction Survey Response Yes No Total
100
Frequency 10 0 10
75
50
25
0 Yes No
How often should NALCO conduct its Customer Satisfaction Survey Response Annually Semi-Annually Quarterly Monthly Total Frequency 6 4 0 0 10 Percentage 60 40 0 0 100
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Whether more parameters be included in the Customer Satisfaction Surveys conducted by NALCO Response Yes No Total
100 90 80 70 60 50 40 30 20 10 0 Yes No
Frequency 1 9 10
Percentage 10 90 100
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When it comes resolution of complaints, 10 % felt that it was excellent while 70 % found it to be very good and 20 % found it to be good. This shows that customers are satisfied with it but they are not extremely satisfied.
There are scopes of improvement in this area mainly in the speed with which the complaint is resolved. Most customers are not highly satisfied with the overall way the complaints are dealt with. 70 % of the customers have not given the best ratings to the ease of contacting NALCO to register a complaint.
It is also found that price of the product and the timeliness of delivery are the two most important parameters as perceived by the customers closely followed by the quality of the product. The reason why quality comes next to the other two is probably because the customers are assured of good quality products from NALCO.
Most customers also feel that the price quoted by NALCO is lower than what is offered by other producers which means they are satisfied with the price quoted by NALCO
In general, the customers are highly satisfied with NALCO, they would like to do business with NALCO in the future and they would also recommend NALCO to others.
But when asked about the overall relationship with NALCO, there is a reduction in the percentage of highly satisfied people. 40 % find it excellent while a majority 60 % find it very good.
This reduction in percentage could be because there are certain areas where there is room for improvement like customer service, clarity of information provided by NALCO and the time it takes to respond to queries apart from the customer complaint resolution issues mention earlier.
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4. Suggestions
From the previous observation it can be stated that NALCO is able to maintain the overall satisfaction of its customers but in addition to that: NALCO needs to develop its customer relationship management (CRM). Though the customers are satisfied, there is scope for improvement in the relationship part. Customers are not highly satisfied when it comes to contacting NALCO to register a complaint. An online customer complaint section can be included in the official website of NALCO and a dedicated operator for quick resolution of complaints. NALCO can have better evaluation of the customer satisfactions by using the database of complaints so that organization could better align its products and services to meet customer expectations. The knowledge base mentioned above could be integrated with all other functions and process of the company with the help of a strong IT framework. This could help in taking care of customer needs and expectations at all functional levels.
NALCO should respond to customer complaints quickly which will improve customer loyalty. A speedy response can add 25% to customer loyalty.
Customers expect improvement in the clarity of information issued by NALCO. The information could be related to pricing, MOU policies other terms and conditions.
Selling on credit is not a policy of NALCO. If any buyer wants to buy products from NALCO, then the payment is to be made in advance or through Letter of Credit including all taxes, which is difficult for some buyers. So NALCO should allow some customers having good track record to take in credit term.
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Though most customers (60%) feel that the CSI surveys conducted by NALCO should be conducted annually, I would strongly recommend NALCO to continue with semi-annual method. This is so because with the ever changing external business environment, the needs and expectations of customers also keep changing. It is but necessary to keep track of these changes.
5. Conclusion
As National Aluminium Company Ltd. always tries to continuously improve upon their responsiveness in all spheres of interaction, this project was a sincere effort to help NALCO in maintaining healthy relationship with their customers. I hope that the data which were collected for NALCO and the suggestions and recommendations given will help them in inventing new areas & restructuring old areas in way of customer satisfaction management.
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6. References
NALCO Metallic Bulletin 27th Annual Report 2007-08 of NALCO Marketing Manual, NALCO NALCO at a glance Official Website of NALCO : www.nalcoindia.com Other websites o www.metalworld.co.in o www.indiainfoline.com o www.wikipedia.org
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7. Appendices
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Appendix 1
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Appendix 3
National Aluminium Company Ltd. Corporate Marketing Department Half-Yearly Customer Feedback Report For Period Ending :June / December , 200___ CUSTOMERS NAME: (A) GENERAL PRODUCT CATEGORY: INGOT SOW BILLET WIRE CAST ROLLED ROD STRIP PRODUCT
Please furnish the feedback separately for each category. (B) FEEDBACK REPORT Note: 1. Rating : In 10 points scale, please tick in the appropriate box as per your ratings where 1 = unsatisfactory and 10 = excellent. 2. Please go through the rating for your best supplier for same product, if other than NALCO. VALUE CATEGORIES 1. Chemical Composition : NALCO 1 2 3 Best Supplier 1 2 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
4 4
5 5
6 6
7 7
8 8
9 9
10 10
7 7
8 8
9 9
10 10
10
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10
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
4 4
5 5
6 6
7 7
8 8
9 9
10 10
Factor b) Timely Dispatch NALCO 1 2 3 Best Supplier 1 2 7. Responsiveness Factor a) Response to queries NALCO 1 2 3 Best Supplier 1 2 3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
4 4
5 5
6 6
7 7
8 8
9 9
10 10
Factor b) Timely and complete redressal of complaint, if any NALCO 1 2 3 4 5 6 7 Best Supplier 1 2 3 4 5 6 7
8 8
9 9
10 10
Factor c) Timely and correct refund of credit balance / discounts NALCO 1 2 3 4 5 6 7 8 Best Supplier 1 2 3 4 5 6 7 8
9 9
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Appendix 4 QUESTIONNAIRE Dear Respondent, We are students pursuing our MBA in the field of Marketing. Currently we are doing our Summer Internship in National Aluminium Company Ltd. The Objective of the study is to determine the Customer Satisfaction levels of the clients and customers of NALCO with respect to various parameters. This is purely an academic exercise and is meant to upgrade the knowledge in the field of Marketing. The information obtained through this study will be kept strictly confidential. The research and summary report will be prepared using aggregate data, but all individual responses will be kept confidential. We request you to be a part of this study and help us collect and document the necessary information as per the enclosed questionnaire. We thank you for your time, effort and support. For any clarification, please feel free to contact us at the email address or cell numbers given below. We will be thankful if you will send us feedback. Thank you. Pinak Mohanty, KJ Somaiya Institute of Management Studies and Research, Mumbai
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Name of the Organization : Name of Respondent Designation Email Address Telephone Date : : : : :
1. How satisfied are you with NALCO? a. Highly Satisfied. b. Slightly Satisfied. c. Neither Satisfied nor Dissatisfied d. Slightly Dissatisfied e. Highly Dissatisfied.
2. How likely is it that you will do business with NALCO again in the future? a. Highly Likely. b. Slightly Likely c. Neutral d. Slightly Unlikely e. Highly Unlikely.
3. How likely is it that you would recommend NALCO to others? a. Highly Likely. b. Slightly Likely c. Neutral d. Slightly Unlikely e. Highly Unlikely.
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4. How satisfied are you that the people at NALCO showed interest in you as an individual / treated you as a valued customer? a. Highly Satisfied. b. Slightly Satisfied. c. Neither Satisfied nor Dissatisfied d. Slightly Dissatisfied e. Highly Dissatisfied.
5. Please rate the IMPORTANCE of each of the following services provided by NALCO. a. Timeliness of Delivery b. Quality of Product c. Customer Service d. Merchandise Options e. Any Other Services 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5
6. Compared to other companies, the prices of NALCO are a. Higher. b. About the same. c. Lower. d. Do not know.
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7. In any past event of something going wrong, and we sincerely hope that it never happens, how would you rate the following : . Ease of contacting NALCO to complain b. The attention given to your complaint c. Speed with which NALCO dealt with it d. The final resolution/outcome 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5
8. How satisfied are you with the clarity of information or advice provided by NALCO? a. Highly Satisfied. b. Slightly Satisfied. c. Neither Satisfied nor Dissatisfied d. Slightly Dissatisfied e. Highly Dissatisfied.
9. How satisfied are you with the time taken by NALCO to respond to queries? a. Highly Satisfied. b. Slightly Satisfied. c. Neither Satisfied nor Dissatisfied d. Slightly Dissatisfied e. Highly Dissatisfied.
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10. How would you rate your overall relationship with NALCO, considering all your experiences with them so far? a. Excellent b. Very Good c. Good d. Poor
11. Are you satisfied with the overall way the Customer Satisfaction Survey is conducted by NALCO? a. Yes b. No. If No then what changes should be made? [Please write your response here]
12. How often should the Customer Satisfaction Surveys be conducted by NALCO? a. Annually b. Semi Annually c. Quarterly d. Monthly
13. Should more parameters be included in the Customer Satisfaction surveys conducted by NALCO? a. Yes b. No
14. If Yes, then what new parameters should be included? [Please write your response here]
15. Do you have any comments or suggestion that could help NALCO improve its product or service? [Please write your response here]
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