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Executive Summary

Customer relationship management (CRM) has once again gained prominence amongst academics
and practitioners. However, there is a tremendous amount of confusion regarding its domain and
meaning. In this paper, the authors explore the conceptual foundations of CRM by examining the
literature on relationship marketing and other disciplines that contribute to the knowledge of
CRM. A CRM process framework is proposed that builds on other relationship development
process models. CRM implementation challenges as well as CRM's potential to become a distinct
discipline of marketing are also discussed in this paper.
The biggest management challenge in the new millennium of liberalization and globalization for a
business is to serve and maintain good relationship with the king THE CUSTOMER.
In the past producers took their customers for granted, because at that time the customers were not
demanding nor had alternative source of supply or suppliers. But today there is a radical
transformation. The changing business environment is characterized by economic liberalization,
increasing competition, high consumer choice, demanding customer, more emphasis on quality
and value of purchase etc.
All these changes have made todays producer shift from traditional marketing to modern
marketing. Modern marketing calls for more than developing a product, pricing it, promoting it
and making it accessible to target customer. It demands building trust, a binding force and value
added relationship with the customers.
The process of developing a cooperative and collaborative relationship between the buyer and
seller is called customer relationship management shortly called CRM.

CRM (customer relationship management):CRM (customer relationship management) is an information industry term for methodologies,
software, and usually Internet capabilities that help an enterprise manage customer relationships in
an organized way. For example, an enterprise might build a database about its customers that
described relationships in sufficient detail so that management, salespeople, people providing
service, and perhaps the customer directly could access information, match customer needs with
product plans and offerings, remind customers of service requirements, know what other products
a customer had purchased, and so forth.
According to one industry view, CRM consists of:

Helping an enterprise to enable its marketing departments to identify and target their best
customers, manage marketing campaigns and generate quality leads for the sales team.

Assisting the organization to improve telesales, account, and sales management by


optimizing information shared by multiple employees, and streamlining existing
processes (for example, taking orders using mobile devices)

Allowing the formation of individualized relationships with customers, with the aim of
improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.

Providing employees with the information and processes necessary to know their
customers understand and identify customer needs and effectively build relationships
between the company, its customer base, and distribution partners.

Aims of CRM:-

The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to make the
customer climb up the ladder of loyalty.
The company first tries to determine who are likely prospects i.e. the people who have a strong
potential interest in the product and ability to pay for it. The company hopes to convert many of its
qualified prospect into first time customers and then to convert those first time customers into
repeat customers. Then the company tries to convert these repeat customers into clients they are
those people who buy only from the company in the relevant product categories. The next
challenge for the company is to convert these clients into advocates. Advocates are those clients
who praise the company and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the customers and the
clients work actively together to discover ways of getting mutual benefit.
Thus in CRM the key performance figure is not just current market share but share of life time
value by converting customers into partners.
In CRM the company tries to identify that small percentage (20%) of key account holders whose
contribution to the company revenues is high (80%). So from this point of view, CRM is also
known as KEY ACCOUNT MANAGEMENT.

Literature Review
With the available literature we can summarize CRM in the words of various authors as
follows-

Customer Relationship Management (CRM) has become one of the most dynamic technology
topics of the millennium. According to Chen and Popovich (2003), CRM is not a concept that is
really new but rather due to current development and advances in information and enterprise
software technology, it has assumed practical importance.The root of CRM is relationship
marketing, which has the objective of improving the long-term profitability of customers by
moving away from product-centric marketing.
Customer relationship management has been defined as a business approach that integrates
people, processes, and technology to maximise relationships with customers Goldenberg (2008,
p.3). Moreover, it has been stated that customer relationship management characterises a
management philosophy that is a complete orientation of the company toward existing and
potential customer relationships (Raab et al, 2008, p.6)
A restricted view of Customer Relationship Management would be database marketing focusing
on how promotional marketing is linked to database management tools. A more widely accepted
idea states that it is the application of technology that emphasizes on individual or one to one
relationships with customers by integrating database knowledge with the long term prospects of
growth and customer loyalty. Managing a successful CRM implementation requires an integrated
and balanced approach to technology, process, and people (Chen, J. Injazz, Popvich, K.,
2003).CRM or Customer Relationship Management is an enterprise wide initiative that belongs
to all areas of an organisation (Singh D. and Agrawal, D.P. 2003). It reflects the comprehensive
strategy and process of acquiring, retaining, and partnering with selective customers to create
superior value for the company and the customer. Customer Relationship Management is a term
for the methodologies, technologies and e-commerce capabilities used by the firms to manage
customer relationships. In particular CRM software packages aid the interaction between the
customer and the company, enabling the company to co-ordinate all of the communication
efforts so that the customer is presented with a unified message and image.

CRM coordinates touch points around a common view of the customer (Eckerson and Watson,
2000). As the business gets larger and number of customer relationships to be managed increase
exponentially, it calls for integration of different business departments to collaborate the
customer information to provide a unified view of customer interaction to serve the customers
better.
Customer Relationship Management is the strategic process of shaping the interactions
between a company and its customers with the goal of maximizing current and lifetime value of
customers for the company as well as maximizing satisfaction for customers (Rajagopal,
Sanchez and Romulo Sanchez, 2005).
Mueller (2010) characterises customer relationship management aspect of the business as a highly
dynamic, and convincingly argues that businesses have to adopt a proactive approach in devising
relevant programs and initiatives in order to remain competitive in their industries.
Sinkovics and Ghauri (2009) relate the necessity for engaging in customer relationship
management to high cost of direct sales, highly intensifying level of competition in the global
level, and need for information about various aspects of the business in general, and consumer
behaviour in particular, that can be used to increase the levels of sales.
According to Peppers and Rogers (2011), there is global tendency in customer relationship
management that relates to the shift from transactional model towards the relationship model. In
other words, Peppers and Rogers (2011) argue that satisfying customer needs as a result of on-time
transaction is not sufficient today in order to ensure the long-term growth of the businesses.
Instead, businesses have to strive to maintain long-term relationships with their customers in order
to maintain flexibility to adopt their increasing expectations and thus achieving their life-long
loyalty. Peppers and Rogers (2011) further stress that, businesses that refuses to acknowledge this
tendency in the global marketplace would be risking their market share and growth prospects in the
future.

One of the most critical sources for the research is the book Relationship Marketing and
Customer Relationship Management authored by Brink and Berndt (2009). The book offers an in-

depth discussion of the concept of Customer Touch Map and discusses the role of information
technology in facilitating customer relationship management.
The work of Mathur (2010) represents another significant contribution to the research area to be
used in the study. Namely, the author provides a wide range of specific customer relationship
management techniques and principles that are used by multinational businesses. The findings of
Mathur (2010) can be compared to the primary data findings in the proposed research, thus
enhancing the scope of the study.
Khurana (2010), on the other hand, discusses the concept of customer relationship management in
a great detail, and also addresses advantages and disadvantages associated with a range of relevant
software applications. The third edition of Pradans (2009) Retailing Management is another
noteworthy source that is going to be used in the study. Specifically, Pradan (2009) identifies
customer relationship management as an emerging aspect of marketing in retail and discusses its
importance for ensuring long-term growth for retail businesses.
A global approach towards the issues of customer relationship management is adopted by Raab et
al (2008) in Customer relationship management: a global perspective. The value of this specific
work to the proposed research can be explained in a way that it will allow the comparison of
customer relationship management principles to the similar principles exercised by other
multinational retailers in a global marketplace.
Bhatias (2008) work, Retail Management is also going to be used in the proposed study due to
the significance of the contribution of the work to the research area. Bhatia (2008) offers in-depth
discussions related to the use of loyalty cards by retailers, and this represents a comprehensive
analysis of the issue in the secondary data.
A range of academic models and writings relate to this research in direct and indirect ways and
some of the most relevant models are going to be explored in the study. One of the most models to
be used in the study is The Gap Model of Service Quality. A model of service quality called the
gap model identifies five gaps that can cause problems in service delivery and influence customer
evaluations of service quality (Lamb et al, 2011, p.189).
These five gaps are
a) the gap between customer wants and the management perceptions about customer wants;

b) the gap between the management perceptions about customer wants and the specifications of
service developed.
c) the gap between the service specifications and the actual service provided;
d) the gap between the quality of service promised and the quality of service provided, and
e) the gap between expected service and perceived service on behalf of customer.
Another relevant model to be tested during the study constitutes Relationship Model of customer
relationship management proposed by Peppers and Rogers (2011). Specifically, the model
advocates adopting a pro-active approach in sustaining customer relationships and proposes a set
of specific principles that would assist to accomplish this task.

Customer Relationship Management marketing can be defined as an integrated effort to identify,


maintain and build up a network with the individual customers and to continuously strengthen the
network for the mutual benefit of both parties, through interactive, individualized and value added
contracts over a long period of time.

Conceptualization:A firm in paint industry has to maintain good relations with its customers. They have to retain the
customers for a long time to avail the benefit of their relations. The customer relationship
management is one of the effective tools to identify, establish and maintain relationship with the
customers.

Need For Study


In todays intensely competitive, rapidly changing & highly complex business environment
characterized by diminishing customer loyalty, the need to be market focused & customer centric

is more critical than any other time in past. Firms use technology as a key tool to enhance the
information flow within their business units, helping their employees better understand the ever
changing and increasing need and wants of their customers.
It is certain that the internet will continue to change the ways customers and organizations interact
with one another in terms of speed and ease. This fact requires that the integration of internet
technology into CRM activities occur at all levels throughout the organization. Thus, it would be
wrong to say that keeping its customer satisfied is in the best interests of the organizations.
The purpose of this study is to bring insight and deeper understanding into the objectives,
strategies and the expected benefits of CRM initiatives by the organization.

Why customer relationship management

A satisfied customer in 10 years will bring 100 more customers to the company.
It costs 7 time more to attract a new customer than to serve an old one.
20% of the companys loyal customers account for 80% of its revenues. (Paretos
principle).
The chances of selling to an existing customer are 1 in 2, the chances of selling to a new
customer are 1 in 16.

Eight ways to keep customers for life

1. Every part of the companys marketing effort should be geared towards building lifetime
relationships.
2. People want to do business with friendly people. To have effective relations a friendly attitude
must permeate in the organization.

3. Information technology developments should be positively used to serve the customers.


4. The company should always be flexible to bend its rules and procedures in the clients favor.
5. The company should communicate with its customers even when it is not trying to sell
something.
6. The company can communicate and develop stronger customer bonding by providing financial
and social benefits.
7. The company should try to know all its customers including their lifestyles, hobbies, likes and
dislikes etc.
8. The company should make it a point to deliver more than what is promised.

Focus of the problem

The paint industry is basically manufacturing based industry. Through this study we are going to
identify the importance of CRM in the paint industry.
How it is benefited from CRM? Is their any relevance of implementing CRM?
And what role does information technology can play in CRM?

Research Topic

CRM in the Paint industry

In paint industry one company sell its product to another company. For example a yarn
manufacturing company sell to fabric manufacturing company. A fabric manufacturing company
sell fabric to apparel company. The main customers of the companies in the paint industry are the
wholesalers. And the final product is sold to the wholesalers and retailers. In this industry the
customers are few and profit margins are high. So CRM is very much necessary and relevant in
this industry. There is a high degree of uncertainty on the part of the buyers, the likelihood of
customers seeking a relationship is increased. If the firm loses its customer it would be major loss
to the firm. The product in the paint industry is complex and quality is an important factor. One of
the major values the customer expects from vendors is quality. No customer will tolerate average
quality. According to GEs chairman John quality is the best assurance of customer allegiance and
strongest defense against competition and the only path to sustained growth and earnings. If the
product is not of good quality the customer will not be satisfied and the firm may lose its customer.
Moreover there is a scope of customization in the product. The seller has to customize the product
according to the need of the customer. Customization is changing the product according to the
need of the customer in order to satisfy him.

Objectives of study:-

1.

To study the current practices of CRM.

2.

To find out the impact of CRM on the profitability of the organization.

3.

To study the factors affecting the CRM practices in paint industry.

4.

To study the use of CRM in paint industry.

5.

To study the importance of CRM in business.

INDUSTRY PROFILE

The Indian paint industry, estimated to be around Rs. 21,000 Cr industry, has been growing at a
rate of above 15% for the past few years. The organized players cater to about 65% of the overall
demand, whereas the unorganized players take care of the remaining 35% in value terms.
The industry consists of two segments, namely decorative segment & Industrial segment.

In the domestic market, Decorative segment accounts for 70% of the total demand for paints
whereas industrial segment accounts for remaining 30%.
Growth of the paint industry has been consistent with the growth of Indian GDP. Paint industry
growing at a rate of 1.5 to 2 times of Indian GDP.
The top 5 companies make up more than 80% sales of the organized market.
Top 5 companies in India market are
1) Asian Paints Ltd. (Rs. 6500 Cr)
2) Kansai Nerolac Paints Ltd.(Rs. 3000 Cr)
3) Berger Paints Ltd. (Rs. 2200 Cr)
4) Akzonobel India Ltd. (1100 Cr)
5) Shalimar Paints (Rs. 500 Cr)

COMPANY PROFILE

Kansai Nerolac Paints Ltd.(KNPL)


Kansai Nerolac Paints Ltd. has been a cherished name in millions of household across the length &
breadth of India. It is the second largest coating company in India and the market leader in
automotive & powder coating.
Kansai Nerolac Paints ltd. is a subsidiary of Japan based Kansai Paint Limited, which is one of
the top ten companies in the world. The technological edge of Kansai helps us constantly
innovate & come up with products that meet consumer need gaps. Kansai Nerolac has always
believed that the key to its business is:
i) Technology

ii) Research & Development

iii) Innovations

iv) Quality

Kansai Nerolac Paint Ltd. is number one in automotive sector having strong presence in almost all
major automotive industries like Maruti Suzuki, Toyota, Tata Motors, Mahindra, Honda, Bajaj,
Volvo etc.
They have very strong distribution network in domestic market for decorative segment also KNPL
is leader in powder coating.
KNPL having 5 manufacturing facilities in 4 regions to cater all India operation with whereas the
head office & R & D centre is based at Mumbai.
KNPL is the 1st Indian paint company working on SA
P

Benefits of Customer Relationship Management:A Customer Relationship Management system may be chosen because it is thought to provide the following
advantages:

Quality and efficiency

Decrease in overall costs Decision support

Enterprise ability

Customer Attentions

Increase profitability

Improved planning

Improved product development

Customer service:
CRM software provides a business with the ability to create, assign and manage requests made by customers.
An example would be Call Center software which helps to direct a customer to the agent who can best help
them with their current problem. Recognizing that this type of service is an important factor in attracting and
retaining customers, organizations are increasingly turning to technology to help them improve their clients
experience while aiming to increase efficiency and minimize costs.

CRM software can also be used to identify and reward loyal customers which in turn will help customer
retention. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have

the right tools and authority to solve client problems.

Increase in customer retention

Customer satisfaction ratings improved

Service calls deflected from call center to online forum

Reduction in overall customer service costs

Marketing:
CRM systems for marketing help the enterprise identify and target potential clients and generate leads for the
sales team. A key marketing capability is tracking and measuring multichannel campaigns, including email,
search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and
revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to track customer behavior
and nurture them from first contact to sale, often cutting out the active sales process altogether.
In a web-focused marketing CRM solution, organizations create and track specific web activities that help
develop the client relationship. These activities may include such activities as free downloads, online video
content, and online web presentations

Sales:-

Product- or company-related postings

Positive product comments, reviews

Visitors following link from social channel to online stores URL

Sales Force Automation (SFA): involves using software to streamline all phases of the sales process,
minimizing the time that sales representatives need to spend on each phase. This allows a business to use
fewer sales representatives to manage their clients. At the core of SFA is a contact management system for
tracking and recording every stage in the sales process for each prospective client, from initial contact to final
disposition. Many SFA applications also include insights into opportunities, territories, sales forecasts and
workflow automation.

More sales lead with expressed interest or need Increase in referrals

Reduce cost per lead acquired

Key social influencers identified and engaged (invited to write a blog, for instance, or otherwise
participate in a companys online community)

Overall increase in online sales and/or online customers

High response rate to coupon or promotion offered on Facebook or other social channel

Increased purchasing from social channel visitors vs. regular online visitors

Horizontal vs. Vertical:-

Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM solution,
companies may use industry templates to overlay some generic best practices by industry on top of
the horizontal CRM solution. Horizontal CRM vendors may also rely on value added reseller
networks of systems integrators to build vertical solutions and sell them as 3rd party add-ons or to
come in and customize the solution to fit into a particular scenario.
Vertical CRM vendors focus on a particular industry. As a general rule of thumb in CRM, it is ten
times more costly to build a vertical solution from a horizontal software program than it is to find a
particular vertical solution that is already tailored to your business model and industry.

Porters five force model on Indian Paint Industry


Supply: Supply exceeds demand in both the decorative as well as industrial
paints segments, Industry is fragmented.
Demand: Demands is for decorative paints depend on the housing sector and
good monsoons. Industrial paint demand is linked with user industries like
auto, engineering and customer durables.
Barriers to entry: Brand, distribution network, working capital efficiency, and
technology play a crucial role.
Bargaining power of suppliers: Price increases constrained with the presence
of the unorganized sector for the decorative segment. Sophisticated buyers of
industrial paints also limit the bargaining power of suppliers. It is therefore
that margins are better in the decorative segment.
Bargaining power of customers: High due to availability of high choices.
Competition: In both categories, companies in organized sector focus on brand
building. Higher pricing through product differentiation is also followed as a
competitive strategy.

Model Analysis
1. Bargaining power of buyers: Households and Industrial Users are the
main customers of this industry.

For housing requirements,the buyers can be customers (building


contractors who buy in bulk) and end customers (people who paint/repaint their house). Customers are more price sensitive because for them
number of options are available and decisions are made based on
qaulity, price and differentiating factors (like weather protection,
environment friendly paints). The unorganized market has also have a
large chunk of market share providing many options to lower income
segment.

Whereas, Industrial segment is low margin high revenue business and


buyers of these segments are knowledgeable about their needs.
Therefore, price comparison is done effectively by the customers.
However, The leading Industrial paint suppliers have their expertise in
their favor, which limits the bargaining power of buyers.

Thus, Bargaining power of buyer is Medium.


2. Bargaining power of suppliers: The Indian Paint industry is raw
material intensive industry with more than 300 products going into the
manufacturing of the final products. The raw material can be divided
into different categories like pigments, additives, solvents, binders etc.
Titanium Dioxide is one of the key pigment used in he production of
paint and is facing a global supply shortage. Thus supplier of this
material has solid bargaining power.
Thus, Bargaining power of supplier is Medium.

3. Competitive Rivalry: About 80% of organized market is created to by


the below four palyers of Indian Paint Industry. But the current market
growth rate can provide ample room of opportunity for all the palyers of
the industry to flourish. However, competition will keep on increasing as
market will get saturated, but this will take some time to happen, till
then one can keep satisfy customer need with good margin. Also, the
presence of unorganized market does provide room for competition.
Thus, on the whole competitive rivalry for the Indian paint industry
is Low to Medium.

Company's Business Model


Asian Paints: Overall Market leader due to cost leadership in decorative paint
market.
Kansai Nerolac: Market leader in Automotive Industrial Paint segments, also
into decorative paint.
Berger Paints: Major revenue from decorative segment, also into industrial
paints
Akzo Nobel: Major revenue from decorative segment, also into Automotive
segment
Shalimar Paints: Mainly into decorative and non-automobile industrial
coatings.
4. Availability of Substitute: The availability of subsitute of very
minimal. In the rural areas lime wash is conventionally used substitute
for paints. One alternative option for decorative walls availabe today
is Wallpaper. Thus, the availability of substitutes in the Indian Paint
Industry is Low to Medium.

5. Threat of new entrants: As it has been stated earlier that the paint
market in Indian is dominated by few players, making it difficult for
anyone new entering the industry to compete. Since new technologies
are also available to shorten production life cycle of paint. Thus, Threat
to new entrant is Medium.

How to introduce CRM in the companies:Four key steps for putting one to one marketing program to work

Step 1: Identify your customers:


To launch a one to one initiative the company must be able to locate and contact a fair number of
customers or at least a substantial portion of its valuable customers. It is crucial to know the
customer details as much as possible, not just their names or address, but their habits, preferences
and so forth.

Step 2: Differentiating your customers


Customers are different in two principal ways; they represent different levels of value and have
different needs. Once the company identifies its customers differentiating them will help the
company to focus its efforts to gain the most advantage with the most valuable customers.

Step 3: Interacting with the customer


Interaction is also a crucial component of a successful CRM initiative. It is important to remember
that interaction just not occur through marketing and sales channels, customer interact in many
different ways with many different areas of the organization so to foster relationship all the areas
of the organization must be accessible to the customer.

Step 4: Customize your enterprises behaviour


ultimately to lock a customer into a relationship a company must adapt some aspect of its behavior
to meet customers individually expressed needs this might mean masscustomizing a manufactured
product or it might involve tailoring some aspect of the service surrounding the product.

Challenges:Successful development, implementation, use and support of customer relationship management


systems can provide a significant advantage to the user, but often there are obstacles that obstruct
the user from using the system to its full potential. Instances of a CRM attempting to contain a
large, complex group of data can become cumbersome and difficult to understand for ill-trained
users. The lack of senior management sponsorship can also hinder the success of a new CRM
system. Stakeholders must be identified early in the process and a full commitment is needed from
all executives before beginning the conversion. But the challenges faced by the company will last
longer for the convenience of their customers.
Additionally, an interface that is difficult to navigate or understand can hinder the CRMs
effectiveness, causing users to pick and choose which areas of the system to be used, while others
may be pushed aside. This fragmented implementation can cause inherent challenges, as only
certain parts are used and the system is not fully functional. The increased use of customer
relationship management software has also led to an industry-wide shift in evaluating the role of
the developer in designing and maintaining its software. Companies are urged to consider the
overall impact of a viable CRM software suite and the potential for good or bad in its use.

Significance of the study

The CRM (customer relationship management) is an integrated effort to strengthen the network of
relationship for the mutual benefit of both the parties. The biggest management challenge in the
new millennium of liberalization and globalization for a business is to maintain good relationship
with the king the customer. This study is of great significance because

A 5% increase in the customer retention will increase the profit up to 125%.

It costs seven times more to attract a new customer than to serve an old one.

20% of the companys loyal customers account for the 80% of its revenues.

To study on customer relationship management would enable the researcher to know about
the CRM practices adopted in the Paint industry.

Research Methodology
Research design
The study conducted here is exploratory and convenience research.
Scope of the study
The scope of the study is confined to Companies stated in the report and to paint industry.

Collection of the data

The report is based upon secondary data are those data which are primarily collected by the other
person for his own purpose and now we use these for our purpose secondly. The data is collected
from various websites and journals present on the internet.Data Analysis:

The customers of the companies are the direct industries & wholesalers. It is because for the
decorative segment the number of retailers is very large as compared to the wholesalers. So it is
not possible for the company to approach to the retailers. Therefore the company sells to the
wholesalers and then wholesalers sell to the retailers.
Customers are encouraged to give suggestions and complaints so that the company can improve
its working and services. If the customers complaints are not resolved the customers will be
dissatisfied and the company may lose its customers.
Different customers have different requirements. So the company customizes its product
accordingly to satisfy the customers. It also gives more choice to the customers.
To get the information about the customers and to measure the satisfaction the company conducts
surveys through Business development sales persons.
The company gives credit facility to its customers to increase the sales volume. If the
company do not sell on credit the customers may switch over to other companies.
The company maintains frequent communication with the customers. As soon as the product is
ready or a new product is launched the information is provided to the customers. Communication
is also necessary to maintain the interest of the customers in the company.

The company gives concession to its regular customers so as to retain its most valuable and
profitable customers.The company regularly reviews the business process in order to eliminate
non value-adding activities, to reduce the cost and to make the whole work efficient and effective.
If the internal customers are not satisfied and there is lack of coordination among the departments
then it will affect the external customers also.
Findings:
The customers of business are industries & Distributors throughout India.
The needs of the customers are clearly defined and the products are customized
according to the needs of the customers.
Customers comments and complaints are welcomed and resolved quickly and positively.
Comments and complaints are taken through face to face interviews.
The company conducts customer satisfaction surveys.
The company provides credit facility to its customers up to 90 days. If the customers pay
within 21 days they are given 5% cash discount for distributors.
Sales persons of the company maintain frequent and informative communication with the
customers.
Business process is regularly reviewed to eliminate non value-adding activities.
The average sale per customer has increased by 10% and customers response to the marketing
activities is also improving. Customer retention is also improving.
The factors which have an impact on the CRM are organization culture, support from top
management, interpersonal skill of the sales personals and working environment of the

company.

Limitations of Customer Relationship Management:

1.

Time constraint is unavoidable limitation of my study.

2.

Financial problem is also there in completing this project in a proper way.

3.

Inadequate disclosure of information is also the problem.

Recommendations:

There should be more and more emphasis given by the company for satisfying the customer up to
an apex limit and by providing the utility of every penny of his money.
There should be more use of information technology.
The company should be flexible to bend its rules and procedures in the clients favour.
The company can communicate and develop stronger customer bonding by providing social
and financial benefits.

Conclusion:

From this study it can be concluded that the customer relationship management in this industry is
satisfactory.
The company is using various CRM practices like customization of the product, maintaining
interaction with the customers regularly and providing good quality product etc. Customer
relationship management has a certain impact on the profitability of the company. Average sale per
customer has increased 15% over the last two years. Customer response rate towards marketing
activities is also improving.
There are various factors affecting the customer relationship management like working
environment of the company, support from top management and coordination among the
departments of the company.
Information technology is not used as much as it should be.
The paint industries are using traditional tools of CRM like quantitative research, personal
interviews. The company should modern tools like data mining, contact center, e-CRM and web
based survey tools.
The domain of customer relationship management extends into many areas of marketing and
strategic decisions. Its recent prominence is facilitated by the convergence of several other
paradigms of marketing and by corporate initiatives that have developed around the theme of
cooperation and the collaboration of organizational units and their stakeholders, including
customers.

CRM refers to a conceptually broad phenomenon of business activity, and if the phenomenon of
cooperation and collaboration with customers becomes the dominant paradigm of marketing
practice and research, CRM has the potential to emerge as the predominant perspective of
marketing. From the corporate implementation point of view, CRM should
not be misunderstood to simply mean a software solution implementation project. Building
relationships with customers is a fundamental business of every enterprise, and it requires a
holistic strategy and process to make it successful.

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