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Project Report
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Project Report
By
ANAND JOSHI
UBI/MBA/I/JUL11/7718
JARO EDUCATION
MUMBAI
APRIL 2012
DECLARATION
it has not formed the basis for the award of any other degree.
Anand Joshi
Place: Pune
th
Date: 28 April 2012
ACKNOWLEDGEMENT
to Jaro Education and all those who have contributed towards the successful
I would like to thank peoples of M/s. Kansai Nerolac Paints Ltd. for giving an
(Guide). This project would have been incomplete without his guidance and
timely assistance.
I am also thankful to all my friends who were very helpful throughout the
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
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
Growth of the paint industry has been consistent with the growth of Indian GDP. Paint
The top 5 companies make up more than 80% sales of the organized market.
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
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:
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,
They have very strong distribution network in domestic market for decorative segment
KNPL having 5 manufacturing facilities in 4 regions to cater all India operation with
In today’s 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
The purpose of this study is to bring insight and deeper understanding into the objectives,
Introduction:-
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
All these changes have made today’s producer shift from traditional marketing to modern
marketing. Modern marketing calls for more than developing a product, pricing it,
The process of developing a cooperative and collaborative relationship between the buyer
methodologies, software, and usually Internet capabilities that help an enterprise manage
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.
their best customers, manage marketing campaigns and generate quality leads for
• Allowing the formation of individualized relationships with customers, with the aim
• Providing employees with the information and processes necessary to know their
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
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
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
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,
Ø A satisfied customer in 10 years will bring 100 more customers to the company.
Ø It costs 7 times more to attract a new customer than to serve an old one.
Ø 20% of the company’s loyal customer’s account for 80% of its revenues. (Pareto’s
principle).
Decision support
• Enterprise ability
• Customer Attentions
• Increase profitability
• Improved planning
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
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 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,
Increase in referrals
Key social influencers identified and engaged (invited to write a blog, for
instance, or otherwise participate in a company’s online community)
Increased purchasing from social channel visitors vs. regular online visitors
Product development:-
New ideas for future products or services generated via contests or “crowd
sourcing,” in which online groups brainstorm and then vote on best ideas
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.
How to introduce CRM in the company:-
Four key steps for putting one to one marketing program to work –
To launch a one to one initiative the company must be able to locate and contact a fair
crucial to know the customer details as much as possible, not just their names or address,
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.
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.
Ultimately to lock a customer into a relationship a company must adapt some aspect of its
behavior to meet customer’s individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
Challenges:-
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 CRM’s
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
network of relationship for the mutual benefit of both the parties. The biggest
business is to maintain good relationship with the king – the customer. This study is of
Ø It costs seven times more to attract a new customer than to serve an old one.
Ø 20% of the company’s loyal customers account for the 80% of its revenues.
With the available literature we can summarize CRM in the words of various authors as
follows-
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
A research design is simply a plan for study in collecting and analyzing the data. It helps
the researcher to conduct the study in an economical method and relevant to the
problem.
Research design
Primary data – primary data is that data which is collected for the first time. These data
are basically observed and collected by the researcher for the first time. I have used
Secondary data – 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.
.
Questionnaire
16. Is the working environment is conducive to the well-being and morale of all
employees?
a) Yes
b) No.
The needs of the customers are clearly defined and the products are customized
Customer’s comments and complaints are welcomed and resolved quickly and
positively. Comments and complaints are taken through face to face interviews.
customers pay within 21 days they are given 5% cash discount for distributors.
The average sale per customer has increased by 10% and customer’s response to
The factors which have an impact on the CRM are – organization culture, support
from top management, interpersonal skill of the sales personals and working
The customers of the COMPANY 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 customer’s 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
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
the company.
The company gives concession to its regular customers so as to retain it’s most valuable
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
• 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.
• The company should be flexible to bend its rules and procedures in the clients
favour.
From this study it can be concluded that the customer relationship management in
Company 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 company is 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.
References:-