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A Project Report


To Study Customer Relationship Management(CRM) In Asian Paints

Submitted for partial fulfillment Of The requirement of Term end project in 3 trimester

Guided By:

Submitted By:

Dr. Bhawna Syal

Neha Deora
Roll NoJKBS/AICTE/2012-14/033


I hereby declare that I did the project on To Study Customer Relationship Management (CRM) In Asian Paints taking the information correct in my knowledge under the guidance of my marketing professor.

I am thankful to Dr. Bhawna Syal for giving me the opportunity to do this project.

Neha Deora

This is to certify that the term end project work entitled To Study Customer Relationship Management(CRM) In Asian Paints is a piece of work done by Neha Deora Student of JKBS, GURGAON, under my guidance and supervision for the partial fulfillment of the course PGDM Trimester-3. The work embodied in this report is original and is of the standard expected of an PGDM student and has not been submitted in part or full to this or any other University for the award of any degree or diploma. He has completed all requirements of guidelines for research project report and the work is fit for evaluation.

(Signature of Guide) Name: Dr. Bhawna Syal Designation: PGP Chairperson and Marketing Professor Organization: JK Business School

The Research on To Study Customer Relationship Management(CRM) In Asian Paints has been given to me as part of the curriculum in 1st Year Post Graduate Diploma in Management. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researches, analysts and student for further studies. I have completed this study under the able guidance and supervision of our Faculty member Dr. Bhawna Syal. I am also thankful to my friends who helped me a lot in the completion of this project.


Serial no. 1. 2.

Topic Introduction Theoretical Framework

3. 4. 5. 6.

Objectives Of Study Research Design And Methodology Data Analysis And interpretation Findings And Recommendations





INTRODUCTION Paint Industry In India-Foundation for paint was laid in the year 1902 with the setting up of Shalimar Paints in Calcutta. It was during the and after the World War II. That large number of paint manufacturing units was set up in India. Since then the Indian paint industry has made substantial progress. The paint industry has come to the recognition as an important sector in the national economy in producing industrial coating and decorative paints. Decorative paints available in wide range of combination account for 70% of the coatings total production. While industrial paints share the balance of 30%. This rate is diametrically opposite to the trend in the industrialized countries where industrial paints account for 70% and Decorative paints for the balance of 30%. The Indian paint industry is at the crossroads. All most all-major paint companies have expanded or are expanding its capacity substantially. With demand rising slowly competition is becoming increasingly intense. The decreasing growth rate has made the paint companies to woo customers aggressively. The customer is being offered 10% rebate in most products is unheard in the industry so far. Most companies have increased their discounts to their dealers to unimaginable level dealers are offered higher credit levels, flexibility in payment, foreign trips for selling even low value products and the like. The increasing competition to offer solutions through technology has made all the paint make as offer a large number of shades through computerized colour dispensing system. ImportanceGenerally paints and coatings are applied to products to protect them from: Environmental Corrosion. Protection of Food and Beverages in metal cans. Improve aesthetic appeal. Asian Paints Limited is an Indian chemicals company headquartered in Mumbai, India. It manufactures a wide range of paints for decorative and industrial use. Asian Paints is India's largest paint company and Asia's third largest paint company, with a turnover of Rs 96.32 billion. It is also ranked among the top ten Decorative coatings companies in the world. Asian Paints along with its subsidiaries have operations in 17 countries across the world with 23 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints Egypt, Asian Paints, Apco Coatings and Taubmans. While working towards enhancing customer experience the management at Asian Paints looks at the bigger picture by being aware about environmental hazards. All manufacturing plants and units are certified environmentally safe. Asian Paints formulates, manufactures & sells the finest paints (the most suitable for each need and giving good value for money to users) & provide the best possible service to its customers characterized by Reliability & Responsiveness. The products provide surface protection & good appearance for all consumers while being safe to apply, not harmful to health and not adverse to the environment. Customers - the very core of all the business activities. From the beginning, Asian Paints has fostered a customer-centric approach to business. A simple but unbeatable concept of "going where the customer is" drives all its retail strategies.

History1ST February 1942 Armed with little knowledge and great determination, Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint Company', a name that they picked randomly from a telephone directory. 1945 Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy "to reach consumers in the remotest corners of the country with small packs." 1954 Asian Paints mascot, Gattu, the mischievous kid, is born. 1957 - 66 The family-owned company makes the transition to a professionally managed organisation. British company Balmer Lawrie rejects the products of a giant British paint company in favour of Asian Paints. Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with thousands of dealers in small towns all over India. 1967 Asian Paints emerges as India's leading paint company ahead of any international competition. Vision- Asian Paints aims to become one of the top five Decorative coatings companies worldwide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners. Current Status Asian Paints becomes the 10th largest decorative paint company in the world. Asian Paints is more than twice the size of its nearest competitor It is one of the most admired companies in India Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution. Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT survey, 2000 . On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and International business units and adopted SCM and ERP technology. Asian Paints aims to become the 5th largest decorative paint company in the world. Asian Paints has introduced stores like Colors With Asian Paints in Mumbai and Delhi where customers can experience the whole world of Asian Paints for free.

Future Plans- Asian Paints to accelerate growth of its non-decorative coatings business Approves plans to enhance its relationship with PPG, to accelerate growth of the non-decorative coatings businesses in India. Asian Paints Signs MOU with Maharashtra Government to set up a Mega Project for manufacture of Paints and Intermediates at Kesurdi in Maharashtra The Asian Paints Helpline introduced few years ago is a toll free service where consumers call and ask queries related to painting. The company has now extended this service to ASIAN PAINTS HOME SOLUTIONS, which offers painting services in addition to the paint. This service is available in 10 cities viz - Hyderabad, Bangalore, Kolkata, Delhi, Chennai, Ahmedabad, Mumbai, Pune, Coimbatore & Cochin Awards and Recognition Awarded the "Sword of Honour" by the British Safety Council for all the paint plants in India. This award is considered as the pinnacle of achievement in safety across the world. Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005. Ranked 24th amongst the top paint companies in the world by Coatings World - Top Companies Report 2006. The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005. Received the Ernst & Young "Entrepreneur of the Year - Manufacturing" award in 2003. The Companys Competitive advantage High degree of awareness about the company among the target market constituents. Company regarded as a quality-produce maker. Market leader, financial and marketing strength to sustain investment Pressures Core competence in paints, wide variety and well-developed R & D. Wide dealer network and good information base about different markets. Factors Behind Success Of Asian PaintsMarketing Strategies The success of Asian Paints is primarily attributed to marketing acumen. The company has made excellent use of the electronic and print media, besides publishing informative brochures for all its products. The companys mascot Gattu created to give an ethnic touch has almost become synonymous with the generic product. Critical Success factors Distribution The marketing success of Asian Paints was based on the realization that the semi-urban was untapped and the small consumer neglected. To reach those consumers in small town, the company built a broad distribution network across the whole country. From small towns Asian

Paints moved to reach out to the metropolitan market. Today, the network with 17,000 retailers across the country is making the company responsive to a large customer base. Use of Information Technology To strengthen the distribution network, the company has gone in for computerization at the branch and the depot level. All branches and 45 depots across the country are connected to the four plants and the Product Management Group at the Head Office through the VSAT. The use of the IT has meant faster flow of information, more efficient management of supplies, and better inventory control. Width of Product Line As already shown above, the width of product line is enormous giving the customers a huge range to choose from. Introduction of stores like Colors With Asian Paints Such stores in Mumbai and Delhi are a great innovation. They are high on investment but the customer entering the store even once is the customer of Asian Paints for life. Plants Of Asian Paints India Ltd.INDIAN PLANTS

Asian Plants Bhandup (Maharashtra) in India

Asian Plants Kasna (Uttar Pradesh) in India

Asian Plants Sriperumbudur in India

Asian Plants (Rohtak, Haryana) OVERSEAS PLANTS

Berger International Plants Barbados

Berger International Plants Bahrain

Berger International Plants Jamaica

Berger International Plants Singapore

Berger International Plants Trinidad

Paints- the color of life (A Profile) Basically, Paint is a mixture of the following elements which give a paint its flow, and enable it to be brushed on a surface Solvents- Solvent is the liquid in paint that suspends the pigment and resins and transports them from the paint brush to the wall. The solvent then evaporates and leaves the paint film behind. Solvents in paint can be water (for latex paint) or mineral spirits (for oil based alkyd paint). The less solvent in the paint the higher the quality and the better the coverage. Binders- Which hold the paint together, as well bind it to the surface that is painted, thus giving its property of durability. Pigments- Which give paint its colour and opacity. Additives- Which give paint special properties such as resistance to fungus, rust ..etc.,

Paints can be distinguished as 1. Emulsions: These are water based paints Acrylic Emulsions are extremely durable and give wall silky and smooth finish. They washable and easy to maintain. Eg: Asian Paints offers three brands to choose. Premium-Apcolite Royal Acrylic Emulsion. Medium-Apcolite Super Acrylic Emulsion. Economical-Super Decoplast. 2. Distempers: These are also water based paints but their binders may be very natural or synthetic. Distempers are economically priced, they offer good value for money as they are durable. Eg: Asian Paints has Tractor Acrylic washable Distemper. Tractor washable Synthetic Distemper. 3. Luster And Matt Finishes: These are solvent based paints are extremely durable. The former gives a gloss egg shell finish while matt finishes have a dead matt finish. Eg: Asian Paint has Apcolite luster finish. Apcolite synthetic matt finish.

4. Exterior Finishes: For exterior cement paint is mainly used as it is economical. It also has a reasonable life if in areas where monsoon is not too heavy. Eg: Gattu cem. 5. Enamels: It provide the best coating for metals they are tough, durable, glossy in finish. The smooth shiny look lasts for years. Enamels protect from corrosioin. Eg: Apcolite Synthetic Enamel. Mangoes Synthetic Enamel. 6. Primers: Primers are usually the first coat applied on a surface it is meant to prepare the surface for painting. It offers protection to the paint. Eg: Asian Metal Primer. Woodorite Primer. 7. Fillers/Puttis: It is used to fill up the crises or any unevenness to ensure that the finish coat gives a smooth surface. 8. Autoacquer: It is NITRO CELLULOSE paint for auto finishing. Eg: Krilo Apca Aspa Products Manufactured By The CompanyBased on the surface on which they are applied, decorative paints are usually classified as wall, metal, wood and plastic finishes. The products could be emulsions, enamels, varnishes, automotives, or undercoats. Their end use could be in the sign board, bus body, industry or household segments. Asian Paint has offered brands in all possible applications. For instance: Synthetic / Acrylic Washable Distempers: Tractors Acrylic Emulsion: Apcolite (Quality I,) Royale (premium category) Plastic emulsion Paint (Interiors / Exteriors): Decoplast (Quality II), Apex (Quality I). Synthetic Enamel: Apcolite, Gattu Packet Distemper: Utsav Wooden Surfaces: Touch Wood, Silkwood, Apcolite Natural Wood finish Cement Paint (external): Gattu Industrial Segment General Industrial Finishes: Apcolite (Hammerton Finish) Other Industrial Products: Expory Coatings, Chlorinted Rubber finishes, viny I & Polyurethane Systems.

Automotives Kirlo an Acrlic Paint Apca nitro-cellulose based Paint. Aspa an Allkyd, autocare Primers Asian Metal Primer Redoxide Tractor Redoxide Primer for Metal Woodrite for Wood Substrate Decorative Cement Primer

THEORITICAL FRAMEWORKCustomer Relationship Management (or CRM) is a phrase that describes how your business interacts with your customers. CRM is about what you do with that information to better meet the needs of your existing customers and identify new customers, resulting in higher profits for you. CRM is often thought of as a business strategy that enables businesses to:

Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs

Don Peppers and Martha Rogers outline a four step framework for one to one marketing that can be adopted to CRM as follows: 1. Identify your prospects 2. Differentiate customers in terms of their needs and their value to your company. 3. Interact with individual customers to improve your knowledge about their individual needs and build a stronger relationship. 4. Customize products, services, and messages to each customer. Customer satisfaction can greatly achieved by imparting Customer Relationship Management (CRM) in the company. Customer Satisfaction- Customer Satisfaction, business term of how the products and the services supplied by the company meet or surpass the customer expectation. It is the key performance indicator within the business. By Berlin Asong Business Techniques of Customer Satisfaction One of the key customer satisfaction techniques is the need to provide front line employees with the ability to respond to customer situations quickly without the need to ask for permission. Innovation drives customers' satisfaction. As customers' needs keep changing, an innovationdriven company is capacitated to exceed customers' expectations. To provide after sale services. Listen actively and carefully. Anticipate that the customer will be asking questions. They may be easy, they be hard. But encourage them anyway. If you cannot provide an answer, promise to find out the answer from someone who can. Be patient, look from the customer's point of view and work from there. This point of view will always give you the best outlook on the situation. Always keep a smile on your face when dealing with customers which can lead to customer satisfaction. This positive attitude can rub off and turn a potentially negative situation into a positive experience

Efforts taken by Asian Paints to improve their Customer SatisfactionA Customer Care Executive will record your requirement, interest in the service and schedule an appointment for a site visit. A Sales Associate will visit the home on the appointed date & time.: To understand your painting requirements. To explain the various products and painting systems available and suggest options given your need. To conduct a thorough site evaluation to understand present condition of the paintable area. With the customers consent, he will get measurements done for the chosen paintable area through a panel applicator assigned for the job. To finalize the Painting Estimate as per the measurements, painting systems chosen and the standard rate card. The Sales Associate will introduce the customer to the Relationship Associate who will be responsible for the execution of the job, and handover all points discussed with customer so far, before start of the actual painting job. The panel applicator assigned will initiate the job, with regular supervision by the Relationship Associate. The Relationship Associate will set a work schedule in consultation with the applicator for the job and share with customer, this will provide the timeline for the completion of the painting job, in a phase wise manner. The RA will supervise and ensure that the quality of painting is as per recommended guidelines and the painters are taking due care of things apart from painting - eg. Covering and masking of non-paintable surfaces, ensuring a clean job, taking care of furniture and fixtures, etc. The RA may also advice the customer on suggested shade choices, usage of special themes. After completion of painting the RA will ensure professional handover of the site to customer post required cleaning. Post completion - the invoice & warranty card with a validity of 1 year on paint & application will be couriered to you. An independent agency will contact the customer for confirming satisfaction rating on different parameters. During or after the painting process if there is any problem faced,, customer may get in touch with our customer care at 1800-209-5678 or mail the company at

OBJECTIVES- Following are the two objectives of my project: To track and measure the customer satisfaction in relation to Asian Paints as a product and its price. Are the customers satisfied by the services provided by Asian Paints

RESEARCH DESIGN AND METHODOLOGY- The respondents in this research are the general population. The questionnaire was framed and was distributed by e-mail to 100 of these respondents out of which 50 responses were received giving the response rate of 50%. These respondents were selected through convenience sampling technique. A 4 point rating scale was used for all questions (e.g. for valence rating, 1=very dissatisfied to 4=very satisfied).


Customer Satisfaction
Attributes Sales Representatives Online Facilities Price Level Overall Satisfaction Q. no. Q1 Q2 Q3 Q4 Very Satisfied 10 20 10 30 Somewhat Satisfied 20 50 50 40 Somewhat Dissatisfied 50 20 20 20 Very Dissatisfied 20 10 20 10

The data is in %

120 100 80 60 40 20 0 Q1 Sales Representatives Q2 Online Facilities Q3 Price Level Q4 Overall Satisfaction Very Dissatisfied Somewhat Dissatisfied Somewhat Satisfied Very Satisfied

INTERPRETATION- From the above table, following is the inferences for different elements. Sales Representative: The total satisfaction is 30% and the total dissatisfaction is 70% out of which 20% are very dissatisfied. The gap between the dissatisfaction and satisfaction is 70% 30% = 40%. That means the dissatisfaction level is 40% more that satisfaction level. This indicates that the company need more improvement in this area of business activity. Online Facility: the total satisfaction of the customers is 70%and dissatisfaction is 30% .the satisfaction gap is 70% - 30% = 40%. It means the satisfaction rate is 40% more than the dissatisfaction rate. This means the companys performance is better in this field. But out of 30%, 10% are very dissatisfied and 20%are somewhat dissatisfied. The company must find the

reasons for such a dissatisfaction for the total success. Price Level: here the total satisfaction level is 60% and the total dissatisfaction is 40% . Therefore, the gap rate is 60% - 40% = 20%.. This means the satisfaction rate is 20% more than dissatisfaction level. Overall Satisfaction: the overall satisfaction rate is 70% and the total dissatisfaction rate is 30%. The gap between the two is 70% - 30% = 40%. This means the overall satisfaction rate is 40% more than the dissatisfaction rate. That shows improvement but not at the sufficient rate.

Satisfaction Of Makeover Ideas

Attributes Makeover Ideas Q. no. 5 Yes(%) 80 No(%) 20

Makeover Ideas

Yes(%) No(%)

INTERPRETATION- From the above table, 20% are not satisfied and do not find the makeover and decorative ideas provided by the Asian Paints useful, as they feel the Ideas do not work out as is shown in the T.V. commercials, while 80% of the respondents have provided with positive response.

Are T.V. Commercials Misleading

Attributes T.V. Commercials Q. no. 6 Yes(%) 40 No(%) 60

T.V. Commercials

Yes(%) No(%)

INTERPRETATION- From the above table, out of the 10 respondents, 40% of the respondents feel that the T.V. commercials shown by the Asian Paints are misleading. This may bring them on verge of brand shifting. Hence the company must overcome this problem as soon as possible. The other 60% have provided a positive response. Satisfaction From Service Sector
Attributes Response To Complaints After Sales Services Q. no. 7 8 Very Satisfied 30 20 Somewhat Satisfied 20 40 Somewhat Dissatisfied 40 30 Very Dissatisfied 10 10

The data is in %

120 100 80 60 40 20 0 Response To Complaints After Sales Services

Very Dissatisfied Somewhat Dissatisfied Somewhat Satisfied Very Satisfied

INTERPRETATION- Regarding the Service Sector of the Asian Paints, following are the results: For Response to Complaints: 50% of the respondents find optimum satisfaction from this sector of the company, out of which 30% are very satisfied, while 40% have given a negative feedback. After Sales Service: 60% of the respondents have derived optimum satisfaction but the other 40% are not satisfied by the after sales services provided by the company. Out of which 20% are very dissatisfied. Preferance Of Asian Paints Over Other Paints
Attributes Asian Paints Q. no. 9 Yes 60 No 40

Asian Paints

Yes No

INTERPRETATION- Form the above table, 40% of them are giving more preference to the other paints companies, while 60% of the respondents have preferred Asian Paints over other paints. Therefore, the company must work to strengthen its customer base further.

FINDINGS AND RECOMMENDATIONSFindings The company must check on the service provided by sales representatives and improve it. The total satisfaction in this area is just prevailing is just 30% and the level of high dissatisfaction is 20%,as the respondents have reported, the local dealers and team leaders are care free and do not respond to their complains. The customers are pretty satisfied with the online facilities and pricing structure of Asian Paints. In case of Online Facilities the respondents have provided with positive feedback. 40% rate of satisfaction level is more than the dissatisfaction level. This shows that the online facilities have upward moving scale. In case of the pricing, 60% customers are satisfied showing that pricing structure is up to the mark. They find the price structure appropriate according to the facilities provided. The overall satisfaction of the Asian Paints Ltd in general judged by the respondents and brought down in this report is, 40% more than the overall dissatisfaction. 80% of the customers find the makeover and decorative ideas useful so the introduction of this service is a success. Regarding the promotional activities, 40% people are dissatisfied. That means out of ten respondents undertaken four respondents feel that the commercials are misleading because according to them they have not got the same effects as shown in the T.V. commercials. And in the fields of feedback to the complains, there is an equal level of satisfaction and dissatisfaction. The After Sales Services shows higher level total satisfaction(60%) than total dissatisfaction (40%). Regarding the inclination towards the Asian paints brands, 6 out of 10 respondents prefer Asian Paints over other paints. But still there are four other respondents who are preferring other paint brands.

Recommendations The company must check on the service provided by sales representatives and improve it. It must provide some incentives to the sales rep so that they work to achieve better customer satisfaction level. There are complaints by the customers regarding the care-free behavior of the team leaders, resulting in poor customer satisfaction. To avoid this, the management must try to change the behavior of the officers as well as team leaders. This can be done by bringing Change Management. Although the customers are pretty satisfied with the online facilities, but a dissatisfaction level of 30% shows scope for improvement. 60% of the customers are not satisfied with the price, so the company must reduce the price of some of the brands. There must be advertising for makeover ideas as well along with the normal ads for

Asian Paints. The customers feel that the advertisements are misleading and fraud. Therefore to remove this negative attitude of the customers the company can demonstrate how to use a particular product and how to utilize and maintain it at its maximum level. If there are any complaints regarding the product of the Asian paints, the line officers must follow up with calls or emails, if required they must send their workers to repair the damaged caused due to the company's product. The company must open more stores like colors with Asian Paints and do effective marketing to attract more customer base as still 4 out of 10 customers prefer other brands.

BIBLIOGRAPHY1) Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha-Marketing Management- A South Asian Perspective 2) Dr. Shaila Bootwala , D.J. Penkar, V.K. Behere, Modern Marketing Management

3) Best Techniques to create Customer Satisfaction By, Berlin Asong and Glenn Magas 4) Business Strategies to Increase Customer Satisfaction By,Doc Pratt

5) Measuring and Tracking Customer satisfaction 6)

7) 8)


1. Please rate your level of satisfaction with your sales representative in the following areas. 2 1 some-what very dissatisfied dissatisfied Provide reasons- ______________________________________________________________ 4 Very satisfied 3 somewhat satisfied


Are you satisfied by online facilities provided by Asian Paints? 4 Very satisfied 3 somewhat satisfied 2 some-what dissatisfied 1 very dissatisfied

Provide reasons- ______________________________________________________________


Regarding the price level fixed by Asian Paints did you find it satisfactory? 4 Very satisfied 3 somewhat satisfied 2 some-what dissatisfied 1 very dissatisfied

Provide reasons- ______________________________________________________________ 4. What is your overall satisfaction rating with Asian Paints Ltd. 4 Very satisfied 3 somewhat satisfied 2 some-what dissatisfied 1 very dissatisfied

Provide reasons- ______________________________________________________________ 5. Asian Paints provide expert help in makeovers and decorative ideas. Did you find it useful? YES NO

Provide reasons- ______________________________________________________________ 6. Do you feel the T.V. commercials of Asian Paints Company are misleading? YES NO

7. Asian Paints ltd provide a separate section for complaints. Did you ever had a complain for Asian Paints products or its services? YES OR NO

If, yes did you find the response given, satisfactory? 4 Very satisfied 3 somewhat satisfied 2 some what dissatisfied 1 very dissatisfied

8. Do you feel satisfied by the after sales services provided by Asian Paints ,in terms of tips on the post application and maintenance, invoice, warranty card, etc.

4 Very satisfied

3 somewhat satisfied

2 some what dissatisfied

1 very dissatisfied

9. Do you think Asian Paints are more satisfactory than other paints? YES NO