Make Every Day Exciting

A PROJECT REPORT ON CUSTOMER RELATIONSHIP MANAGEMENT
AT FORTUNE FORD MOTORS SOMAJIGUDA, HYDERABAD.

BY MOHAMMED HASSANUDDIN STUDENT OF BBA(2009-11)

AMITY GLOBAL BUSINESS SCHOOL(HYD)

1

Make Every Day Exciting

INDEX OF CONTENTS

CHAPTER 1: 1.1 1.2 1.3

- OBJECTIVES OF THE STUDY - SCOPE - NEED OF THE STUDY

CHAPTER 2: INTRODUCTION 2.1 - Introduction to MARKETING

CHAPTER 3: BRIEF DESCRIPTION OF THE ORGANISATION 3.1 - About Ford Company 3.2 - Company profile of Fortune Ford Motors 3.3 - History of Ford in INDIA 3.4 - Fortune Ford products

2

Make Every Day Exciting

CHAPTER 4: THEORETICAL PERSPECTIVE -Introduction To CRM -Concept & Definition -Benefits of CRM -CRM across Company Functions -Concept of Relationship Management -Potential Returns of CRM systems -Benefits to Organisation -Benefits to Customer -Marketing Strategy -Strategic Market Segmentation -Marketing Strategies of Ford

CHAPTER 5: RESEARCH METHODOLOGY

CHAPTER 6: ANALYSIS & INTERPRETATION

3

Make Every Day Exciting

CHAPTER 7: FINDINGS & SUGGESTIONS

CHAPTER 8: -

LIMITATIONS OF THE STUDY

APPENDIX

-QUESTIONNAIRE -BIBILOGRAPHY

INTRODUCTION:

4

Make Every Day Exciting

CUSTOMER RELATIONSHIP MANAGEMENT

A customer is the most important person ever in this office….. In person or by mail A customer is not dependent on us…… we are dependent on him. A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer. A customer is a person who brings us his wants. It is our job to handle then profitably to him and to ourselves. Customer relation as a tool for identifying way to create more customer value & satisfaction. Every firm is a synthesis of activities that are performed to design, produce, and market, deliver, and support its product. Many companies are intent on developing stronger bonds with their customers-called Customer Relationship Management (CRM) . This is the process of managing detailed information about individual customer and carefully managing all the customers "touch points" with the aim of maximizing customer loyalty... A successful business must have satisfied customers. We will treat them as we would wish to be treated ourselves. They require an excellent service and our work ust therefore be undertaken with our customers as the key focus, providing better products and services then our competitors. We will measure the quality of service and look for continual improvements. The aim of Customer Relationship Management (CRM) is to produce high customer equity. Customer equity is the total of the discounted lifetime values of all of the firm's customers. Clearly, the more loyal the customer, the higher the customer equity, rust, Zenithal, and Lemon distinguish three drivers of customer equity; value equity, brand equity, and relationship equity

5

Make Every Day Exciting

CHAPTER 1

6

Make Every Day Exciting

OBJECTIVES OF THE STUDY
The main objective is to determine the current relationship management level of the customers with all aspects in regard to “Fortune Ford Motors”.

1.1 Objectives in Detail:

01.

To determine current relationship management level of the customers with

all aspects of their delivery. 02. 03. services. 04. To identify what type of marketing strategy is suitable for the company to To determine key dissatisfaction areas, if any. To identify different customers needs in regard to a Fortune Ford Motor cars

reach the targeted customers. 05. To enable the company's customer care department to handle the customer's

queries more effectively and efficiently. 06. To enable the sales team to promote sales effectively through maintaining

Customer relation. 07. To generate new leads through customer satisfaction.

7

Make Every Day Exciting

1.2 SCOPE OF THE STUDY :

The scope of the study is to identify the customer relationship management level towards "Fortune Ford Motors". The study was conducted for a period of 45 days covering various places in Hyderabad & Secunderabad city. Primary data was collected from customers. Secondary data was collected from company manuals, magazines and websites and so on, the study gathers information about the customer's relation maintaining in the car level in regard to Quality of Service, Safety Tips , fuel saving tips, driving tips etc.., customer care service and other values added services provided by the company.

It is aimed at enlightening the company about different steps to be taken up to increase the share of "Fortune Ford Motors" with regard other competitors and also to make the company to provide better customer services

8

Make Every Day Exciting

1.3 NEED FOR THE STUDY:

Customer relationship management plays a major role for the growth of the company in the modern market scenario.

In the case of "Fortune Ford Motors" cars industry due to different network services providers there is a huge competition, to compete with the competition customer's relation plays a major role for any company.

The purpose of customer relation is not only for retaining the customers but also attracting new customers, increasing the sales and maintenance of brand awareness.

Customer perceptions attitudes and views regarding the products and services, along with suggestions assume greater importance in the light of new entries and potential competitors, this study is an attempt that directs to facilitate the management in marketing their future decisions in promoting and creating a good image in the society.

9

Make Every Day Exciting

CHAPTER 2

INTRODUCTION TO MARKETING

10

Make Every Day Exciting

Markets:

The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer relationships. However, creating these relationships takes work. Sellers must search for buyers, identify must first create a need-satisfying marketing offer (product). It must decide how much it will charge for the offer (price) and how it will make the offer available target consumers (place). Finally, it must communicate with the target customers about the offer and persuade them of its merits (promotion).

Marketing:

Marketing is the business function that identifies customer needs and wants. Creating customer value and satisfaction are the heart of modern marketing thinking and practice. Marketing is the delivery of customer satisfaction at a profit.

Many people think of marketing only as selling & advertising. But selling & advertising are only the tip of marketing. Marketing means managing markets to bring about exchanges and relationships for the purpose of creating value and satisfying needs & wants.

11

Make Every Day Exciting

Today, marketing must be understood not in the old sense of making a sale – ‘’telling and selling’’ – but in the new sense of satisfying customer needs. If the marketer does a good job of understanding consumer needs; develops products that provide superior value; and prices, distributes, and promotes them effectively, these products will sell very easily. Thus, selling and advertising are only part of a larger ‘’marketing mix’’ – a set of marketing tools that work together to satisfy customer needs and build customer relationships.

Broadly defined, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others. In a narrower business context, marketing involves building profitable, value – laden exchange relationships with customers. Hence, we define marketing as the process by which companies create value for customers and build strong relationships in order to capture value from customers in return.

Customer Needs, Wants, and Demands:

The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety: social needs for belonging and affection: and individual needs for knowledge and self – expression. These needs were not created by marketers: they are a basic part of the human makeup.

Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, French fries, and a soft drink. A person in Mauritius needs food but wants a mango. Rice, lentils, and beans. Wants are shaped by buying power, wants become demands. Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction.

12

Make Every Day Exciting

Marketing Management:
The analysis, planning, implementation and control of programs design to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

Marketing Management concepts

Production Production

Produc Produc t t

Selling Selling

Marketing Marketing

Societal Societal

Production concept:
Management should focus on improving production and distribution efficiency. When the demand for a product exceeds the supply, management should looks for ways to increase production. When the products cost is too high, improved productivity is needed to bring it down.

Product concept:
Consumer will favour products that offer the most quality, performance and innovative features. Thus, an organization should devote energy to making continues product improvements.

Selling concept:
Consumers will not buy enough of the organizations products unless its under takes large-scale selling and promotion effort.

13

Make Every Day Exciting

Existing Factory products

Selling & promoting

Profits through sales volume

Selling:
Selling is also important function of marketing. It is the process where by goods and services finally flow to the customers who need them. Selling focuses on the needs of the seller.

Marketing concept:
The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than to competitors.
Customer Market satisfaction needs Integrated Profits through customer

marketing

Marketing means obtaining customers. Marketing focuses on the needs of the purchaser. Makes profits by creating long term customer relationships based on customer value and satisfaction.

Societal concept:
The societal marketing concept holds that the organization should determine the needs, wants and interests of target markets.
Society (Human welfare)

Consumers (Want satisfaction)

Company (Profits) 14

Make Every Day Exciting

Marketing Mix (4 Ps):
Marketing mix includes the set of controllable, tactical marketing tools in the target marke.  Product means the goods and services combination the company offer to the target market. Ex: Nuts & Bolts, Spark plugs, Pens & Pencils etc.  Price is the amount of money customers have to pay to obtain the product.  Place includes company activities that make the product available to target consumers
 Promotion means activities that communicate the merits of the product

and persuade target customers to buy it. Ford spends money each year for advertising to tell consumer about the company and its product.

Product Product
Product variety Product variety Quality & Design Quality & Design Features Features Brand name Brand name Packaging & Services Packaging & Services Warranties & Returns Warranties & Returns Target Custome rs

Price Price
List price List price Discounts Discounts Allowances Allowances Payment period Payment period Credit terms Credit terms

Place Place
Channels Channels Coverage & Coverage & Locations Locations Assortments Assortments Inventory Inventory Transportations Transportations Logistics Logistics

Promotion Promotion
Advertising Advertising Personal selling Personal selling Sales promotion Sales promotion Public relations Public relations

15

Make Every Day Exciting

Marketing effort / Marketing control:
The company wants to design and put in to action the marketing mix that will best achieves its objectives in its target markets.

Analysis Planning Planning
Develop Develop strategic plans strategic plans

Control Control Implementation Implementation
Carry out plans Carry out plans Evaluate results Evaluate results ( The company ( The company turns the plans turns the plans in to action ) in to action ) Take corrective Take corrective action action Measure results Measure results

Develop Develop marketing plans marketing plans

Customer value and satisfaction

16

Make Every Day Exciting

CUSTOMER VALUE & SATISFACTION

Customer value and satisfaction:
Consumers usually face a broad array of products and services that might satisfy a given need. How do they choose among these many marketing offers? Customers form expectations about the value and satisfaction that various marketing offers will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers often switch to competitors and disparage the product to others. Marketers must be careful to set the right level of expectation. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. If they raise expectations too high, buyers will be disappointed. Customers value and customers satisfaction are key building blocks for developing and managing customer relationships.

Satisfaction is defined as….
“a persons feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations”.

Customer satisfaction depends on a products perceived performance in delivering value relative to a buyers expectations. If the products performance falls short of the customers expectations, the buyer is dissatisfied. If performance matches expectations, the buyer is satisfied. If performance exceeds expectations, the buyer is delighted.

17

Make Every Day Exciting

CHAPTER 3

BRIEF DESCRIPTION OF THE ORGANISATION

3.1 ABOUT FORD COMPANY

18

Make Every Day Exciting

Ford Motor Company is the world's second largest automaker with approximately 350,000 employees, and operating in more than 200 markets on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Hertz and Quality Care. The company's world headquarters is in Dearborn, Michigan. Ford Motor Company officially celebrated its 100th anniversary on June 16, 2003. For additional information visit the site below.

Overview:
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and 108 plants worldwide, the company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company.

Vehicle Brands:

Automotive Service Brands:

The very first member of the Ford Motor Company family of brands, Ford offers distinctively designed and affordable vehicles for the world's varying lifestyles. From the Model T—the car that first brought driving to the masses, to more recent

19

Make Every Day Exciting

favourites like the Mustang in the US, the Mondeo in Europe, the Eco Sport in South America and the Territory in Asia, Ford vehicles have been among the world's most popular cars, trucks and SUV's.

Brief History:
Ford Motor Company began with just Ford vehicles in a wagon shop in Michigan. To fully understand the essence of this founding member of the family brands, just look at the early history of Ford Motor Company, from Henry Ford's earliest automotive experiments to the Models A, T, and beyond. While value for money has always been a top priority in developing Ford vehicles, that concern has never compromised quality or the pursuit of quality solutions. Ford has always strived to meet consumers' real-life requirements—from smaller cars for Europeans, to "smarter" cars for the ever-changing environment.
One of the most essential ingredients for a successful business is communication. We strive to keep the public well informed about us, our products, financial progress, and public policy.

Products and Customers:
We will offer excellent products and services. Ford Motor Company's flexible manufacturing systems have the ability to build up to eight different models off two independent platforms. The flexible systems standardize the assembly process, improve productivity, eliminate waste and boost quality. Developing and introducing products with better environmental performance.

Fast Facts:
 Focusing on customer satisfaction and loyalty and keeping our promises  Using our understanding of the market to anticipate customer needs  Delivering innovative products and services that offer high value in terms of function, price, quality, safety and environmental performance

Progress Since Our Last Report

20

Make Every Day Exciting

Around the world, our markets are changing. High fuel prices are accelerating interest in vehicles with good fuel economy. Markets are expanding in rapidly growing economies and remain highly competitive everywhere we operate. To meet and anticipate our customers' needs, we are focusing on:

 Introducing new products. Globally, we introduced 40 all-new, or substantially new, products in 2004, more than in any year in the Company's history.  Raising the bar on quality. In J.D. Power's Initial Quality Study, our 2004 U.S. vehicles continued a positive trend by improving more than 6 percent compared to 2003.  Implementing shared architectures and technologies and flexible manufacturing. By the end of the decade, 75 percent of our North American and all of our European plants will be flexible and able to produce multiple vehicle models.  Expanding the range of products available in high-growth markets.

Bill Ford – Setting the Vision

"At Ford Motor sustainability

Company,

we

have

made

a long-term strategic business priority. The reason is simple: we are a 100-year-old company, and I want us to become Sustainability a 200-year-old company.

is about ensuring that our business is innovative, competitive and profitable in a world that is Chairman & CEO, facing major environmental and social changes." Ford Motor Company
Bill Ford

21

Make Every Day Exciting

Our Company faces urgent short-term challenges that we have described in our Annual Report and will discuss in this report. We're addressing these challenges by accelerating our business plans to strengthen our balance sheet, optimize our global footprint and deliver more great products faster. That includes eliminating excess capacity, reducing the size of our workforce while improving its capability, increasing our investments in fast-growing markets and speeding up our product development process. Our success as a business in the near term is a prerequisite to any strategy for future growth. However, our responsibility to our customers, shareholders, employees and communities includes preparing for the future without delay. While nobody can confidently predict what the world will look like a few decades from now, it is clear that strong, profitable companies going forward will be the ones that strive for sustainable use of environmental and social capital in a rapidly growing global economy.

The business case is clear:
Reduced use of non-renewable resources will help us cut material and operating cost and avoid the growing volatility of commodity prices. Society's growing concern for environmental issues is creating growth markets for innovative "green" products and technologies that generate new sources of revenue. Increasingly stringent government regulations around the world will favour companies that are best positioned to address underlying environmental and social priorities. Global climate change is one of the most urgent examples. At Ford, we have long acknowledged the importance of climate change. We recognize its potential impact on economic as well as environmental and social systems. Customers, investors and policy makers are increasingly focused on the need to burn less fossil fuel and emit fewer greenhouse gases. The issue will become even more challenging as growing markets like India and China expand their own needs for energy. Climate change is also an example of a complex 21st-century challenge that requires a systemic social, political, technological and business solution. Stabilizing the concentration of greenhouse gases in
22

Make Every Day Exciting

our atmosphere while maintaining economic growth demands corporate and political leadership and dialogue across traditional boundaries. It requires global coordination of technologies, government policies, markets and infrastructures. Within our Company, climate change, and the underlying issue of fuel economy, pose a particular challenge. In North America, the fuel economy of our vehicles is competitive and in some cases even best-in-class within their respective segments. However, the market-leading popularity of our trucks and SUVs results in a low average fuel economy from our fleet as a whole. Across the industry, fuel efficiency improvements compete for investment with other product features and innovations, overall affordability and pressing obligations like safety, health care and pension costs. Even as we grapple with this issue, we continue to set the pace in our industry on important environmental and social priorities, such as reducing water consumption, conserving energy, recycling and reusing non-renewable materials, eliminating toxic materials, establishing codes of working conditions and safety in our plants and supply chain, and addressing public health issues from HIV/AIDS to cancer to juvenile diabetes. You will find all these issues and more addressed in this report. Looming on the horizon are additional challenges as well as opportunities. The sheer scale of our industry is enormous. In the United States, the auto industry is responsible for 6.6 million jobs, which is about 5 percent of all private-sector jobs and nearly 4 percent of Gross Domestic Product. No other single industry is more linked to U.S. manufacturing strength or generates more retail business and employment. The U.S. auto industry purchases 60 percent of all the rubber and about 30 percent of all the aluminium, iron and stainless steel used in the United States. The 61 million new cars and trucks sold globally last year provide personal mobility and economic opportunity to an increasingly interdependent population. Some people believe that it's impossible to provide personal transportation without imposing costs on the environment and society, and that it's impossible for business to address environmental and social needs without breaching its fiduciary responsibility to shareholders.

23

Make Every Day Exciting

At Ford, we are determined that these priorities do not need to conflict with one another, and that the path to profitable growth in our industry may increasingly lie in finding ways to generate new revenue by reconciling these issues, not just trading them off against one another. We describe such thinking in this report, our first organized under a sustainability (rather than corporate citizenship) title. Ford joined seven other automotive companies, three energy companies and an automotive supplier in a study sponsored by the World Business Council for Sustainable Development (WBCSD) entitled "Mobility 2030: Meeting the Challenges to Sustainability," which was published last year. In addition to climate change, air pollution and road safety, the report called out the growing importance of noise, congestion and the mobility "divide" between the rich and the economically and socially disadvantaged as critical issues on the road to sustainable mobility. These issues become even more acute as hundreds of millions of people around the world join the global economic marketplace and claim access to the lifestyle, including personal mobility, long enjoyed by the populations of developed markets. We know that smart competitors are racing to be first with solutions for the 21st century, and we want to lead that race. Our work is, therefore, urgent, and it is proceeding along three paths:

Integrated strategy:
Since we see sustainability as core to our business success, we are working to develop metrics, targets and milestones to be explicitly integrated into our business plan, alongside the fundamentals of quality, cost and revenue, products and relationships. We're also working on the difficult challenge of reconciling short-term imperatives to deliver financial returns with the investments required to realize longterm opportunities.

Technological innovation:

24

Make Every Day Exciting

We have developed an organization and governance structure – the Sustainable Mobility Group – dedicated to investing in and driving new mobility technologies, including hybrids, clean diesels, hydrogen internal-combustion engines and fuel cells. We're conducting this breakthrough work, too, on nearer-term vehicle technologies, such as alternative fuels and advanced gasoline engines. We also continue to work on new developments in the way we build our cars and trucks, for example through flexible manufacturing techniques.

External dialogue:
New business challenges require new thinking, which in turn requires new relationships in the communities in which we operate. The history of industry is littered with the remains of companies that rigidly defended their world view through their policies, strategies, marketing and relationships. On issues of broad public concern, efforts to increase mutual understanding are usually more productive than an adversarial defence of special interests. That's why engagement with policy makers, advocacy groups, consumers, investors, business partners and employees is a cornerstone of our drive to realize our vision. Already, in developing our approaches to human rights and climate change, we have seen the value of listening, learning and acting in concert with thoughtful advocates. I'm proud of the steps we have taken so far – most notably the introduction of the Escape Hybrid, the world's first hybrid SUV; the reinvention of the Rouge facilities as a model of 21st-century sustainable manufacturing; our industry-leading actions in human rights; and the response of our employees to human needs – notably in Southeast Asia after the December 26 tsunami and in the U.S. Gulf Coast after Hurricane Katrina. I also recognize that we have a lot more to do to secure the sustainability of our business over the long term. I look forward to reporting our progress in future reports .

Bill Ford Chairman and CEO

25

Make Every Day Exciting

Overview:
Our industry, the business environment and societal expectations continue to evolve, and so does our reporting. Find out how we are managing sustainability as a strategic priority within the business.

Our Impacts:
As a major multinational enterprise, our activities have far-reaching impacts on environmental, social and economic systems. Read about our analysis and prioritization of these issues and impacts.

"The challenge for us now is to reconcile our need to respond to mainstream investors with our long-term sustainability goals."

Charles Griffith Auto Projector Director,

Barbara Gasper Vice President Investor Relations

Madelyn Hochstein President and Founder, DYG Inc.

Marv Adams Senior Vice President Corporate Strategy and Chief Information Office

3.2 FORTUNE FORD PROFILE:
26

Make Every Day Exciting

Fortune Ford is an authorized dealer for Ford India Limited, who are one of the leading manufacturers of top quality cars in India, with many variants in the offering.

Fortune Ford is a 50:50% Joint Venture set up between two well known and reputed families in Hyderabad, the Modis and the Babu Khans. Fortune Ford is a blend of experience and youth. The experience and good will that Mr. Misbahuddin Babu Khan and Mr. Pramod Modi enjoy blend very well with the youth and energy of the youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class Ford Dealership. Fortune Ford markets and services the recently launched truly European Ford Fiesta, the ever-popular Ford Ikon Flair , the No non-sense car Ford Fusion and the macho SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales outlet is located strategically at Somajiguda next to Eanadu. We have two service centers, one at Chapel Road, Abids opposite Stanley College and other one at Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy access to both the proud owners as well as prospective buyers.The workforce at Fortune Ford is committed to excellence in serving all esteemed customers.
The Sales Team is made up of dedicated showroom and field executives who are professionally trained by Ford India Limited. They are adept at guiding the customer through the entire sales process right from assisting in the choice of model, colour and features to lending a helping hand in providing attractive buyback options and also arranging finance at competitive rates. The Service Centre is armed with the state-of-the art equipment and is inline with Ford's exacting Global standards. The service team is technically qualified and trained to analyze and provide solutions adhering to Quality Care, in order to satisfy even the most demanding customers. The Fortune Ford dealership maintains a high standard of excellence in sales and services by sending its personnel for training on a regular basis to Ford India Limited, to update them with the latest technological advances in the automotive sphere.

SHOWROOM
27

Make Every Day Exciting

We have 5000 sft centrally air conditioned showroom, located in the heart of the city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This makes convenient for almost every one residing in and around Hyderabad and Secunderabad.

The facilities offered from the showroom are : • Very easy finance facility with in-house finance team to cater to your every car finance requirements. All the leading finance counters are available like ICICI, HDFC, KOTAK, SUNDARAM, SBI, etc. • • • Exchange offer for any of your used car. Free spot evaluation for any usedcar. Professionally trained and courteous sales staff to take care of every relevant needs of the customers. Ford preferred insurance for cashless transactions in the event of claims. Special offer on insurance renewals. You can also renew your insurance by just making call to our service marketing help line 9848885962. • • • Full range of Ford cars with all colors and models to choose from. A good stock of Ford genunine accessories to make your Ford ownership more delightful and safe. A well maintained fleet of test drive cars to give you the feel and experience the drive dynamics on actual driving conditions before take the purchase decisions. You can call our sales help line for test drive or fill the on-line test drive requisition form.

28

Make Every Day Exciting

SERVICE CENTERS
We believe that a customer is for life and it will be our endeavor to make your Ford ownership experience truly cherish able. We will make all efforts in meeting this commitment and will always welcome your suggestions and advice to achieve excellence in everything we do.
We have two workshops strategically located at Sanathnagar, Abids and Tolichowki. Based on your convenience, you can choose any of these two facilities to get your car serviced. • ABIDS SERVICE CENTER

# 5-9-171,Chapel Road, Abids, Hyd – 500 001. Telephone: 040-66848384 Service Appointment No. 9848885881 e-mail: service@fortuneford.com • SANATHNAGAR SERVICE CENTER

# 7-2-1851,Fathe Bagh, Sanath Nagar, Hyd-18. Telephone: 040-23800000,23801415 Service Appointment No. 9848885880 e-mail: service2@fortuneford.com • TOLICHOWKI QUICK REPAIR CENTER

# 9-4-76/A/6,Nizam Colony, Hyd - 500008 Telephone: 040-23565000 Service Appointment No. 9848885882 e-mail: service3@fortuneford.com

The following are some of the facilities provided by Fortune Ford to all our esteemed customers: • In case of any break down, you can call our Road side assistance help line no.9848844000. Towing facility is arranged with a nominal cost • Pick-up and Drop facility with prior appointment.

29

Make Every Day Exciting

• • •

Entire range of spare parts and accessories are available to ensure minimum down time of your car. A team of Ford trained and experienced service technicians to take care of your car. An air-conditioned waiting lounge with valuable reading material and related information to make your waiting time more memorable.

• • •

Body shop with computerized colour mixing equipment and well trained skilled staff to take care of your every body shop repair job. Insurance help desk to assist you in the event of any accident repair. We look forward to a warm and long lasting relationship and wish you the smoothest of the driving experience for years to come.

ACCESSORIES
Your car stands out in the crowd! This is no dream. To put a unique stamp of individual personality and style on a Ford car, a snazzy range of accessories are available. So now there is unlimited leverage to sport a distinct style! Genuine accessories are designed and marketed by Ford India, keeping in mind individualistic styles. Each and every Ford accessory is built to last and designed to stand apart for the discerning Ford owner...You! Also, at Fortune Ford trained electricians and mechanics are available to ensure that each and every accessory is fitted as per requirement, to get the best out of it.

Competitive Pricing:
30

Make Every Day Exciting

Ford accessories are great value for money. What you get when you opt for Ford accessories is economy in the long run. With Ford accessories, you can enjoy the feeling of being a savvy customer.

Highest Ford Standards of Quality:
Ford accessories conform to exacting standards of quality. And these standards are the ones that the customers are familiar with, like the ones that Ford adheres to when the cars are made.

Customized for Ford Cars :
All the accessories are perfectly compatible with the Ford cars. That means accurate fitment, and of course, the perfect Ford styling.

Exclusive Designs:
A lot of creativity and effort is invested in designing Ford accessories. Each and every Ford accessory can be easily differentiated because their exclusivity sets them apart from other run-of-the-mill products.

CONTACT US AT

SOMAJIGUDA
Address

6-3-569/2, Rockdale, Somajiguda, Hyderabad - 500 082.

Telephone

040-23322340, 040-23300700

Email Mobile

sales@fortuneford.com +91-9848844000

31

Make Every Day Exciting

ABIDS
Address Telephone

5-9-171,Chapel Road, Abids, Hyderabad - 500 001.
040-55848474

Email Mobile

service@fortuneford.com +91-9848885881

SANATHNAGAR
Address

7-2-1851,Fathe Bagh, Sanath Nagar, Hyderabad -500018.

Telephone

040-23800000

Email Mobile

service2@fortuneford.com +91-9848885880

TOLICHOWKI
Address

9-4-76/A/6, Nizam Colony, Opp.Mogal Residency, Tolichowki, Hyd -80

Telephone

040-23565000

Email Mobile

service3@fortuneford.com +91-9848885882

32

Make Every Day Exciting

Help Lines

2.3 History of Ford in India:
1907 India begins selling the Model A 1926 Ford India is established by Ford of Canada 1935 Indian government officials ask Henry Ford to consider building a car manufacturing plant in Bombay 1941 Mahatma Gandhi sends spinning wheel, the symbol of India's economic independence, to Henry Ford. 1954 Ford India operations cease. 1969 Ford re-enters India in a joint venture with Escorts Ltd. to produce tractors. 1991 Ford ceases tractor operations. Ford establishes Climate Systems India, a joint venture with Maruti and Sumitomo Corporation. 1993 Production starts at the Climate Systems India Plant in Bhiwandi. 1995 (Feb) Ford demonstrates its commitment to the Indian market by completing an equity purchase of 5.8% in M&M. 1995 (Sept) Ford and M&M file for government approval to establish a joint venture company to manufacture and distribute vehicles. 1995 (Nov) Ford and M&M receive government approval on joint venture called Mahindra Ford India Ltd. (MFIL.)

33

Make Every Day Exciting

1996 (Jan) Mahindra Ford India Ltd. announces the choice of Maraimalai Nagar as the site for the new manufacturing facility to begin with the production of the Fiesta. 1996 (Aug) The first Indian-built Ford Escort rolls off the line in the Nashik Assembly Plant. 1996 (Sept) Ford Escort receives more than 70,000 sales bookings. 1996 (Oct) Mahindra Ford makes history in India by simultaneously handing over the first cars in seven cities just one month after close of bookings. 1997 (June) MFIL launches Ford Escort Freedom to mark India's 50th year of independence. 1997 (Sept) MFIL launches Ford Escort Anniversary to mark the first anniversary of Ford Escort in India. 1997 (Oct) The Ford-sponsored photo exhibition, India: A Celebration of Independence, opens in New Delhi. 1997 (Nov) Ford Escort chosen best quality car in JD Power's India Initial Quality Survey. 1997 (Dec) MFIL tops JD Power's Customer Satisfaction Index. 1998 (Mar) Ford establishes the Henry Ford Chair at the Indian Institute of M&M announces decision to modify its equity in MFIL. 1999 (July) Ford India lays the foundation stone for an export plant. The export plant will source auto components locally and assemble kits to export to overseas markets. 1999 (Nov) Ford India launches the IKON -- first car built specifically for India by a multi-national company -- built at its new state-of-the-art plant in Tamil Nadu. 2000 (Feb) Ford India announced that the IKON 1.3 CLXi Endura-E petrol would be available at Ford dealerships across India from March 1, 2000. Technology

34

Make Every Day Exciting

2000 (Mar) The IKON 1.6 Rally Sport was made available at Ford dealerships local content. 2000 (Feb) On February 10, Ford India announced that Narain on March 24, 2000 The Ford IKON is specially designed for India. The IKON has 70 per cent

Karthikeyan would be racing for the Ford-owned Jaguar racing team in the FIA British Formula 3 championship. The company renewed its sponsorship agreement and organised a corporate sponsorship consortium to provide training, development, mentoring and financial backing to Narain in a bid to become the British Formula 3 champion in 2000. 2000 (Apr) Ford India launched Ford Assured on April 24, 2000, a new initiative to buy and sell used cars. This initiative is a 'first of its kind' venture, in which Ford India along with its dealerships will buy, recondition and sell various models of used cars. 2000 (June) Certified for ISO 14001 : 1996 on June 8, 2000 2000 (June) On June 23, 2000, Ford India introduced the latest member of the Josh team, The Ford IKON EXi. This model is available at Ford dealerships from July 2000. 2000 (Aug) On August 4, Ford India announced the Conservation & Environmental Grants programme in India. The grants programme is open to projects in five categories: Natural Environment, Conservation Engineering, Heritage, Environmental Education and Youth projects. 2000 (Sept) On September 11, Ford India launched the Ford IKON SXi – the stylish ‘josh’ machine -- simultaneously in New Delhi, Mumbai and Bangalore. This model is available at Ford dealerships from midSeptember 2000. 2000 (Oct) Ford India has started exporting Ford IKON CKD units, registering an initial order of 1600 units in October 2000. Ford India is well on its way to reach the target figure of 21,000 IKONs in the current financial year, having already crossed the figure of 19,000 IKONs.

35

Make Every Day Exciting

2001 (Feb) Ford India launched a distinctive website with exciting new design element and features to delight motoring enthusiasts, called www.india.ford.com. 2001 (Feb) Ford Assured launched in a partnership with the dealership to buy, recondition and sell used cars of different Indian makes. 2001 (May) Certified ISO 9001:1994 on May 02, 2001. 2001 (Nov) Ford announces winner for the Ford Conservation and Environment Grant program 2001. Ford India announced the winners of the Ford Conservation & Environmental Grants (C&E) Programme in an awards ceremony held at IIT, Madras. Dr Palanichami, IAS, Secretary, Environment & Forest Department, Government of Tamilnadu, presided over the function and presented the grant to five winners from the adult and youth category. 2001(Nov) Ford India launched the Ford Mondeo. 2002 (Jan) Ford India show cases a wide spectrum of exciting cars at the Auto Expo 2002. Ford India unveiled a wide range of exciting cars from the Ford Motor Company stable at the Auto Expo 2002, at Pragati Maidan, New Delhi. Designed by renowned art director Sabu Cyril, the Ford pavilion promises to provide an invigorating experience of unleashing the power of imagination with fun to drive and stylish products on display. 2002 (Jan) Ford India Limited announced a strategic partnership with Hindustan Motors Limited (HML) for the manufacture of automobile engines and transmissions in India. Engines and transmissions for Ford India Limited will be manufactured at HML's state-of-the-art machining and assembly plant at Pithampur near Indore in Madhya Pradesh. 2002 (Mar) Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the QS 9000 award from TÜV Süddeutschland. 2002 (Sept) New Ikon Variant 1.6 EXi was launched New Delhi, September 02, 2002 – Ford India Limited today launched the Ford Ikon 1.6 EXi, its latest variant in the Ikon portfolio,offering a combination of high performance and premium features at great value. The new Ford Ikon

36

Make Every Day Exciting

1.6 EXi, is powered by the 1.6 litre Rocam petrol engine, delivering 91 HP @ 5500 rpm and a peak torque of 130 Nm @ 2500 RPM. 2003 (Jan) The New Ford Ikon NXT launched - The Next Level of Josh. 2003 (Feb) Ford India doubles sale with Ford Ikon NXT for the month of January 2003 with a record 1,737 units compared to 860 units during the same month last year. 2003 (March) Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’ 2003 (June) Ford Celebrates Centennial in India. Ford Motor Company awards World Excellence Award to Cooper Tire & Rubber India. 2003 (July) Ford India launches Ikon NXT SXi. Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study. 2003 (Aug) Ford launches Ikon Flair at Rs. 4.95 Lakhs. 2003 (Sept) Ford Endeavor debuts in India. 2003 (Oct) Ford announces price of Endeavour at Rs. 12.90 Lakhs. 2003 (Dec) J.D. Power ranks Ford Ikon highest in apeal. BBC World’s Wheels Awards 2003 First ever Viewers’ Choice Awards announced BBC World named the winning cars and bikes of the prestigious Wheels Awards 2003. Sponsored by Servo World Class Engine Oil, Wheels is the popular weekly automobile show on BBC World. Ford Ikon 1.6 NXT SXI Best car between Rs 5 and Rs 8 Lacs Ford Endeavor 4WD Best SUV over Rs 10 Lacs 2004 (Jan) Autocar SUV of the Year – Winner Ford Endeavour.

37

Make Every Day Exciting

2.4 Fortune Ford Products
1. Ford Fiesta. 2. Ford Flair. 3. Ford Fusion. 4. Ford Endeavour. Price list of above Products: (W.E.F May 1st, 2007)

Ford Fiesta:

(prices in rupees)
1.4 Duratec 1.6 duratec PETROL Exi Spl. Elite pack* Ex- Showroom Insurance Life Tax Registration T/R Charges Ext. Warranty(2 5,86,500 21,570 52,900 2,500 500 5,500 5,86,500 21,570 52,900 2,500 500 5,500 6,32,200 23,170 57,020 2,500 500 5,500 7,18,200 29,325 64,760 2,500 500 5,500 Zxi Sxi Abs

1.6 Sxi Abs With alloys 7,18,200 29,325 64,760 2,500 500 5,500

38

Make Every Day Exciting

yr) Incidental Charges Essential Pack On Road Price 2,340 6,76,810 38,000 7,12,470 2,470 7,28,360 2,470 8,28,255 5,000 5,000 5,000 5,000

5,000 22,470 8,48,255

1.4 Duratec DIESEL Exi Spl. Elite pack* Ex- Showroom Insurance Life Tax Registration T/R Charges Ext. Warranty(1 yr) Incidental Charges Essential Pack On Road Price 2,340 8,00,590 38,000 8,36,250 5,000 5,000 6,96,500 25,450 62,800 2,500 500 5,500 6,96,500 25,450 62,800 2,500 500 5,500

Sxi Abs 8,02,200 29,155 72,320 2,500 500 5,500 5,000 2,470 9,19,645

Zxi

Sxi Abs(A)

7,42,200 27,050 66,920 2,500 500 5,500

8,02,200 29,155 72,320 2,500 500 5,500

5,000

5,000

2,470 8,52,140

22,470 9,39,645

39

Make Every Day Exciting

FORD IKON: PETROL Flair

1.3 Flair
Blast kit 1 (Rs.)**

(prices in rupees)
Blast kit 2 (Rs.)**

Ex- Showroom Insurance Life Tax Registration T/R Charges Ext. Warranty(1 yr) Incidental Charges Blast Kit On Road Price

4,75,900 17,720 42,950 2,500 500 5,300

4,75,900 17,720 42,950 2,500 500 5,300

4,75,900 17,720 42,950 2,500 500 5,300

5,000

5,000

5,000

3,120 5,52,990

35,000 5,84,870

24,000 5,73,870

40

Make Every Day Exciting

FORD FUSION: (W.E.F. 19th july,2007) FORD FUSION Petrol TDCI 6,59,000 24,135 59,430 500 2,500 5,990 5,000 3,200 7,59,755

Ex- Showroom(VAT) Insurance Life Tax T/R Charges Registration Ex – Warranty Incidential Charges Essential Pack Total

5,70,000 23,880 51,420 500 2,500 5,990 5,000 3,200 6,62,490

41

Make Every Day Exciting

FORD ENDEAVOUR: (W.E.F. 1st June 2007) Diesel Model 4x2 4x2(ltd edition)** Ex – showroom Insurance Life-Tax T/R Charges Registration * Ex- Warranty Incidential Charges Total 16,78,825 17,68,965 17,80,230 14,72,000 57,000 1,32,600 500 2,500 9,225 5,000 15,52,000 59,940 1,39,800 500 2,500 9,225 5,000 15,62,000 60,305 1,40,700 500 2,500 9,225 5,000 4x4

42

Make Every Day Exciting

Terms & Conditions:
• • • • Please collect the original receipt after paying the advance or full amount. Prices are subject to change with out notice. Prices prevailing at the time of physical delivery will be applicable. Vehicles will be delivered only after all registration formalities are completed as per the motor vehicle act. 100 % payment to be made before to delivery by D.D / Cheque / Cash / Pay order in favour of “M/s. Fortune Automobiles India pvt. Ltd”. • • • • Vehicle will be registered and delivered only after receipt of full payment. Booking amount shall not carry any interest. Please produce your PAN copy against delivery as for Govt. rules. Cheque subject to realization.

43

Make Every Day Exciting

Note: All payments to be made to the cashier at the show room only

CHAPTER 4

THEORETICAL PERSPECTIVE

44

Make Every Day Exciting

Customer Relationship Management

Customer relationship management (CRM) is perhaps the most important concept of modern marketing. Until recently, CRM has been defined narrowly as a customer data management activity. By this definition, it involves managing detailed information about individual customers and carefully managing customers “touch points” in order to maximize customer loyalty.

More recently, however, customer relationship management has taken on a broader meaning. In this broader sense, Customer relationship

management is the overall process of building and maintaining profitable
customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping, and growing customers.

To over come such problems, many companies are now turning to customer relationship management (CRM) to manage detailed information about individual customers and carefully managed customer touch points in order to maximize customer loyalty. In recent years, there has been an explosion in the number of companies using CRM. U.S companies spent an estimated $ 42.8 billion last year on CRM systems from companies such as Siebel Systems, Oracle, Micro Soft and SAS and spending is expected to increase by 11.5% a year through 2007.

CRM consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build strong customer relationships. CRM integrate everything that company’s sales,

45

Make Every Day Exciting

service, and marketing teams know about individual customers to provide a 360degree view of the customer relationship.

CRM analysts develop data warehouses and use sophisticated data mining techniques to unearth the riches hidden in customer data. A data warehouse is a company wide electronic data base of finely detailed customer information that needs to sifted through for gems.

The purpose of a data warehouse is not just to gather information, but to pull it together into central, accessible location. Then, once the data warehouse brings the data together, the company use high-powered data mining techniques to sift through the mounds of data and dig out interesting finding about customers. Such data systems can give a company a big competitive advantage.

By using CRM to understand customers better, companies can provide high levels of customer service and develop deeper customer relationships. They can use CRM to point out high-value customers, target them more effectively, cross-sell the company’s product, and create offers tailored to specific customer requirements.

CRM benefits don’t come without cost or risk, not only collecting the original customer data but maintaining and mining it. An estimated half or more of all CRM efforts fail to meet their objectives. The most common case of CRM failures is that companies mistakenly view CRM only as a technology and software solution. But technology alone cannot build profitable customer relationships. “CRM is not a technology solution-you can’t achieve … improved customer relationships by simply slapping in some software’s ”, says a CRM exports.

46

Make Every Day Exciting

Instead, CRM is just one part of an effective overall customer relationship management strategy.

Benefits of CRM
• • • Improved customer retention Purchase amount increases over time – – – – • Average of 8%/year in the insurance industry Order processing Short-term acquisition costs Customer referrals – – – Often harmful to profits Frequently used to level inventories 2-way communications Improves customer satisfaction Reduction in costs

On the “grey markets”

Cultural changes:
Top executives must drive the initiative – Shift from product orientation to customer

Shift in marketing type – Away from mass, towards personal “1:1”

Change in attitude at all levels – Compensation system must change to reinforce new behaviors

New positions or teams should be formed.

47

Make Every Day Exciting

CRM across Company Functions:

Marketing – Account management expertise Research & Development – Specifications that define requirements Logistics – Knowledge of customer service requirements Production – Manufacturing strategy Purchasing – Sourcing strategy Finance – Customer Profitability Reports

The concept of relationship management
At the brodest level, the function of an enterprise’s marketing activities is to bring to buyers and sellers together, to create customers. while getting customers is

48

Make Every Day Exciting

fundamental to business success, keeping customers is more important. successful firms work build long term relationships with their customers. the term relationship management (relationship marketing)communicates the idea that major goal of a business enterprise is to engage in interactions with customers over the long term. Consider the local butcher of years ago. When a female customer walked in to the shop, the butcher said hello and called the customer by name. the butcher knew how customer wanted her steaks and chops trimmed. He knew her family always grilled hamburgers on weekend and those they preferred ground sirloin over ground chuck although he specialized in meats; he also stocked hamburger buns so is customer needed make only one stop. she appreciated the personalized service she received both the butcher and the customer profited from this loyalty relationship. The old-fashioned butcher understood his customers and promptly responded to their needs. in recent years, contemporary marketers have realized that they can learn a lot from shop keepers of the past. Contemporary markets recognize that, once a sale occurs, the firm must stress managing relationships that will bring about additional exchanges. Making a sale should not be viewed as end of the marketing process, but rather as the start of the organization’s relationship with a customer. (The relationship between a buyer and a seller seldom ends when sale is made. in a greatly increasing proportion of transactions, the relationship actually intensifies subsequent to the sale. this becomes the buyer’s critical factor in the buyer’s choice the seller the next time around ………the sale merely consummates the courtship then the marriage begins. how good the marriage is depends on how when the relationship is managed by the seller.) A principle thesis of this text is that customers who receive more than they expect from an organization are pleased and satisfied. Satisfied customers who develop a history of positive interactions and who want to purchase the same product or a related item will return to the organization that has treated them well in the past. As firms strive to treat customers in a manner that encourages repeat sales, they maximize the lifetime value of customer relationships Successful small firms, such as the traditional butcher, have to be relationship oriented. They know that they customers – buyers who purchase promises of

49

Make Every Day Exciting

satisfaction- prefer to be business repeatedly with people and organizations’ they trust. They know that establishing relationships with customers can increase long-run sales and reduce marketing cost. They know that not all customers want the same product and services. They know that two individuals may buy the same product for different reasons. they know that marketing to existing customers to gain repeat business provides benefits to both the organization and customers. in summary, a business enterprise, organization, or firm must focus on both getting and keeping customers. It is the marketer’s job to use the resources of the entire organization to create, interpret and maintain the relationship with customers. It seems important to note that all academic and practitioner-oriented experts see a gap between the relationship management and practical application. Philosophically, relationship management addresses the heart of marketing and, hopefully, the heart any organization-its desire to profitably meet the life needs of customers better then the competition does. At a tactical level, when inappropriately applied relation ship management uses information technology to spawn short-term loyalty schemes that are often opportunistic and may create loyalty to the incentive(i.e., frequent flyer points), as opposed to the provider(the airline).thus it is to important to understand both the philosophy and the tactics of customer relationship management. A customer relationship management (CRM) system by its simplest definition, is a process to compile information that increases understanding of how to manage an organization’s relationship with customers. in this simple view, a CRM system consists of two dimensions, analysis of action. More formally, CRM is business strategy that uses information technology to provide an enterprise with a comprehensive, reliable, and integrated view of its customer base so that all processes and customer interactions help maintain and expand mutually beneficial relationships. CRM is thus a technique or a set of processes designed to collect data and provides the information that helps the organization evaluate the strategic options. A CRM strategy should help organizations improve the profitability of their interactions with current and potential customers while at the same time making those interactions friendlier through individualization and personalization. The purposes of a CRM

50

Make Every Day Exciting

system are to enhance customer service, improve customer satisfaction, and ensure customer retention by aligning business processes with technology integration. A CRM system brings together lots of pieces of information about customers, customer characteristics, sales transactions, marketing effectiveness, responsiveness, and market trends. for example, consider, the united services automobile association(USSA),a company that offers insurance and financial services to more than 3.3 million customers who share a mutual background: the military. (nearly 90 percent of all active duty military officers are members, and less than 1%ever leave.) USAA’s CRM approach relies of information technology to emphasize aerosolized service, mainly via the company’s 32 telephone call centers, where nearly 10,000 customer service representatives filed over 4,00,000 calls each day. When a call comes in, the employee request the member’s account number and then opens a screen listing a chronology of all previous contact and purchases. As conversation proceeds, the USSA customer service representative might access the firm’s enterprise need based sales service tool, which generates a customized profile of services that the member might find useful. For instance, if the member lives in a flood plain yet doesn’t have flood insurance, the service representative can inform the customer about the benefit of flood insurance. An effective CRM system describes customer relationship in sufficient detail so that all aspects of the organization can access information, match customer needs with satisfying product offerings, remind customers of services requirements, know what other product a customer has purchased, and so forth. A bank’s CRM should give a service representative in its telephone all center the ability to retrieve a complete record of a customer’s company interactions seconds after the customer provides identification information. Many CRM system allow customers themselves to directly access information about their transactions with a company

.POTENTIAL RETURNS OF CRM SYSTEMS

51

Make Every Day Exciting

Proponents of CRM systems and the traditional concept of marketing view the customer as the pivotal point around which the business revolves. A fundamental principle of marketing is that customers are different. Some customers cost a great deal to attack and great deal of service while others require very little service and seem anxious to learn about organization. A basic tent is that different customers represent different levels of profit of firm. Successful organization attempt to define characteristics of the best customers, to then estimate the lifetime value of such customers, and to adjust marketing strategy accordingly. Best customers represent a proportion of all customers in an industry who provide profitable interactions, cost little to care for, and who tend to spread positive word of mouth information about the organization. Calculating value over time as a return of the firms investment in acquiring the customer requires as a comparison of revenue and costs how much did we spend achieve a given level of revenue. There are potential benefits as well as cost associated with CRM system for both organization and customers. Organization, or the CRM champions within the organization, tends to think of all the benefits of the system the promise of increased revenues and lowered cost. Customers, in contrast, may first think of the cost associated with the system and have to be reminded of some of the benefits. For example, if the customer orders one product from supplier on the internet and there and suddenly 2,000 messages from firms that sell related goods, the customer may think twice before placing another order on the web or with that organization. Thus ,it can be helpful for organization to consider the benefits and disadvantages of CRM as they invest in their development.

POTENTIAL BENEFITS OF CRM SYSTEM TO THE ORAGANIZATION
The satisfaction of consumers need and wants is the justification for an organization existence. An effective CRM system is away for the organization to develop a customer focus that has impact that allows the organization to hear the customer voice. A customer focus means that the organization is ready to view the purchasing process from the customer’s point of view, to empathize with the customer’s feelings,

52

Make Every Day Exciting

and to treat the customer’s information with great care. If organizations can enough about individual customer than the customer should be satisfied, trusting, and willing to talk positively to others about the organizations wonderful approach the system should enable the organization to retain regular customers as it acquires new ones. Retaining customers and establishing customer loyalty are major objectives of CRM approaches. The cost of acquiring a customer can be high. An old business adage says “it costs six times as much to a new customer as it does keep an old customer.” Although the figures vary by industry an increase is passing year, the point is valid. There are no acquisition costs existing customers who tend to by the same item again and we seek other related products or services from trusted organization. Higher customer retention rates will generally increase revenues and, in most cases, reduce cost. Customer retention simply means that firms satisfies customers and/or offers variety such that the customer comes back and repeats transaction with the same organization.

“The first purchase only trial” is another relevant saying. Suppose a telephone company six million customers using a call waiting feature that cost five dollars a month. During the course of a year, a certain % of this customer cancel their service for reason during the trial period. If the firm could, through personalized promotional messages, stop just I % of those customers –or, 60000 accounts – from canceling, it would retain $3.6 million in annual revenue. The development of CRM system leads to a different kind of thinking about the nature of the business. Historically, marketers have thought in terms of a single product, and their goal has been achieving a high share of market –more customers than their competitors have. In relationship management, the company objective often is to achieve a high share of customer. The company tries to sell an individual customer as many goods and services as it can over the lifetime of that customer’s patronage. In essence, share of customer, or share of wallet, means that the organization wants to please customer to the point that they want the organization to sell them something else. For example wal-mart specializes in lower priced goods, and through it super centers it increase it’s share of customers it regular line of products to include groceries and automobile repairs. CRM system attempt to make
53

Make Every Day Exciting

individual customer more profitable by recognizing the initial sale and recommending related items or services to enhance the customer’s experience. Thus, cross-selling and up selling can be fundamental outcomes of effective CRM system. Cross selling is the marketing of complementary products to existing customers. a retail bank that has checking account customer may market safety deposit box or a car loan to his customer. Over time, it’s able to get the customers home mortgage and equity loan business. One aspect of cross selling is bundling, in which a combination of products is sold as bundle at a price lower then the total of individual prices. for example, southwestern bell telephone’s local telephone service offers the work call return, call blocker, call forwarding, call waiting ,caller ID, and several offerings for one low monthly rate. Up selling is the marketing of higher value of a products to new or existing customers, an insurance company may convince a customer to up grade coverage, a credit card company may try to persuade a customer to upgrade to the platinum card, or a furniture store may attempt to convince a customer to purchase the more expensive versions a table or couch.

An organizations experience the benefits of the customer focus-retention of loyal customer and greater share of customer- the long term profit picture should also improve .since it’s less costly to retain a customer then attract to a new one, CRM system that actually enhance loyalty reduce expenses. as sales related products and service increase, revenues rise. The beauty of customer focus is the emphasis its places on the way that organizations collect use information as a fundamental tool in creating value for customers. However to calculate the return on investment in CRM system, organizations must also consider costs.

POTENTIAL COSTS OF CRM SYSTEMS TO THE ORGANIZATIONS
CRM approach is that it allows to marketers to send the right message about the right offers to the best customers at the right time. Achieving that level of quality from a CRM system may require a significant investment in the organizations information technology infrastructure (served based systems, software licenses and updates,

54

Make Every Day Exciting

firewalls for security, personal to install and maintain systems training for system users in different disciplines, etc)the IT infrastructure is the processing capacity required to fulfill customer needs. The concept of a building technology infrastructure can apply to cities and towns as well as firms. With significant well processes, the system well must available 24 hours each day for 7 days of each week for 365 days each and every year. If the organization is located in an area that experiences intermittent power outages, it may loss creditability, customers and the possibility future repeat sales unless its invests in battery support and fail safe back up systems. Another significant cost in developing an effective CRM system is the prices process of change. Process change implies an alteration in the habitual pattern for accomplishing a task, implementing new system and changing traditional thought pattern both be very difficult to accomplish. If the CRM approach is viewed, for example, as simply a way to provide financially based incentives, customer loyalty may not be develop, and , in fact , the firm may damage its brand image as customer anger develops. As competitors match the financial incentives, the entire industry may experience higher operating costs for the same level of sales a decline probability “it takes a much deeper philosophy of relationship development based on added value delivery to sustain relationships at effective level” . Despite the best efforts of organizations to design effective CRM system, it is people who must implement those system and customers who must appreciate them, use them with ease and feel safe in the process. Organization must appreciate “the dance of change” the inevitable interplay between growth and limits/ benefits and cost positive outcomes are accrue. CRM system holds the promise of growth and benefits but the implementation of system carries with its limits, cost, and other risks.

POTENTIAL BENEFITS OF CRM SYSTEM FOR CUSTOMERS
Customer may also profit from CRM approaches and relationship marketing efforts. First the continuity derived from relationship with the same seller simplifies the buying process. Continuity implies the stable connection or linkage. A Honda advertisement says, “Life is full of complicated decisions. Simplifies” this

55

Make Every Day Exciting

advertisement reflects and understanding that people want their buying decisions to be easier. Many buyers do not to want to evaluate too many factors when choosing among alternatives. If a firm can consistently meet a customer’s need over time, the continuity of the exchange serves to simplify the process and reduce the risk of dealing with new supplier. Buyers become regular customers because they to business with organizations that provide a consistent level of product or service quality. For example, most people are loyal to their hairdressers or barbers.

Marketing strategy:
A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them.

For example, if the marketing objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come, which product lines/products/brands will accomplish this task and how.

STRATEGIC MARKET SEGMENTATION:
Markets can be segmented using several relevant bases. For example, demographic characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc, form one base for segmentation. Geographic characteristics constitute another; and buying behavior of the consumers forms yet another base.

56

Make Every Day Exciting

The various types of segmentations are  Geographic segmentation 1. Climatic zone 2. Region 3. State 4. District 5. Urban/rural area

 Demographic segmentation 1. Age 2. Sex 3. Maritial status 4. Family size 5. Race 6. Religion 7. Occupation 8. Community, language 9. Purchasing capacity 10. Educational levels
11. Social status and income

   

Psychographic segmentation Buyer behavior Benefits segmentation Volume of purchase segmentation

MARKETING STRATEGIES OF FORD:
• Product differentiation based on operational

efficiency:

57

Make Every Day Exciting

FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its offer on the plank of service. It has gone in for a new norm in customer service:
“fix it right-the first time-on time”. Ford is also supplying videotapes

showing how repairs have to be done.

• Adopting Offer to Suit Target Segment:
Ford modifies its models for India:

Ford modified its models for the Indian target segments as shown below:  Higher ground clearance to make the car more compatible to the rougher road surface in India.  Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads.  Changes in cooling requirement, with greater airflow to the rear.  Higher resistance to dust.  Compatibility of engine with the quality of fuel available in India.  Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.)

Strategic segmentation of cars:
The Ford in India has launched the car only for few segment of people.

The segmentation of car buyers based on price preferences are
• Family car segment: These cars forms a reasonably sizeable

segment of the market (around 15 percent).
58

Make Every Day Exciting

Preferred price range is from 5 lakh to 6 lakh.
‘FORD IKON’ AND ‘FORD FUSION’ come under this type of

segment.
• Premium car segment: This segment represents buyers who

need a real world-class car and are willing to pay the due price. Preferred price range starts from 8 lakh to 12 lakh.
‘FORD FIESTA’, ‘FORD MONDEO’ come under this segment of cars. • SUV segment: The buyers of this segment like to have a big

vehicles. And these cars are also useful for sport riding and even on hill areas. There body is designed similar to offroad vehicles, which can withstand to Indian roads. ‘FORD ENDEAVOUR’ occupies this segment.

Strategic Promotions by FORD:
Ford follows the promotions at two levels, they a

1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level.

In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer by himself. In the second step the dealer of the vehicles promotes the vehicles. The various promotional strategies followed by the Ford are • • Advertising in paper Word of mouth etc...

59

Make Every Day Exciting

CHAPTER 5

RESEARCH METHODOLOGY
60

Make Every Day Exciting

RESALE VALUE OF DIFFERENT BRANDS

Resale values of car's after two years of ownership as a percentage of purchases price.

BRAND Fork Ikon Maruti Hyundai Santro Maruti Omni Maruti Zen Maruti Alto Maruti wagon-R Tata Indica Diesel Fiat Uno Maruti Esteem Opel Corsa Hyundai Accent Honda city Mitsubishi Lancer Ford Fiesta Ford Endeavour Ford Fusion

VALUE (%) 63 55 60 54 58 56 55 58 43 51 55 54 56 49 59 55 50

RANKING 1st 2nd

RESEARCH METHODOLOGY
61

Make Every Day Exciting

QUESTIONNAIRE OR SURVEY METHOD The survey technique is intended to secure one or more items of information from a sample of respondents who are representatives of a larger group. The information is recorded on a form known as questionnaire. As data are gathered by asking questions from persons who are believed to have desired information, the method is also known as questionnaire technique. Reasons for wide use of this method. It can secure both qualitative and qualitative information directly from the respondents. It is the only method of directly measuring attitudes and motivations. It is quite flexible in term of the types of data to be assembled, the method of collection or the timing of research. A questionnaire is simply a formalized set of questions for eliciting information. As such, its function is measurement and it represents the most common from of measurement in marketing research. Although the questionnaire generally is associated with surveys, it is also frequently the measurement instrument in experimental designs as well. When a questionnaire is administered by means of telephone or by a personal interview, it often is termed as interview schedule, or simply schedule. Data Collection: The collection of information is ascertained through two principal Sources: 1). 2). Primary Data Secondary Data

62

Make Every Day Exciting

1.

Primary Data:
Meaning: primary sources of data are the data which needs the personal

efforts to collect it and which are not readily available. The collection of this data requires lot of time and efforts. Following are the few ways in which the primary data can be collected: i) Questionnaires: Its set of questions on a sheet of paper was being

given to the respondents of fill it, bases on which the data was interpreted. ii ) Direct interviewing: Direct interviewing involved the process

where I asked the questions directly to the customers and I got the feedback.

2.

Secondary Data:
Secondary sources are the other important sources through which the data

were collected. Any data which have been gathered earlier for some other purpose are secondary data in the hands of researcher. Two sources of secondary data: • • • Internal souces:  Accounting records.  Sales force reports.  Miscellaneous reports.  Internal experts. • External sources:  Computerized data base  Associations  Govt. agencies.  Directories.  Published sources.  External experts. Internal sources. External sources.

63

Make Every Day Exciting

. The secondary sources helpful for study were

1.

Textbooks

like

marketing

management

research

methodology

advertisement 2. 3. 4. 5.

and sales promotion etc.

Internet was made use for the collection of the data. Newspapers were also referred. Business magazines were referred. Some journal was also referred

64

Make Every Day Exciting

CHAPTER 6
ANALYSIS AND INTERPRETATION

65

Make Every Day Exciting

Table – 1 Customer satisfaction over Ford brands: Attributes
Maintenance Value for money Insurance facility Warranty Finance Servicing Total

No. of Respondents.
20 10 15 20 15 20 100

Percentage %
20 % 10 % 15 % 20 % 15 % 20 % 100%

Interpretation:
From the above table 60 % of the customers satisfy service, warranty and maintenance. Remaining 40% of customers are satisfied with insurance, Value for money and finance facility.

66

Make Every Day Exciting

Table – 2 Market demand over Ford Fiesta variants: Variants
Exi (Diesel) Zxi (Diesel) Sxi (Diesel) Exi (Petrol) Zxi (Petrol) Sxi (Petrol)

No. Of Respondents.
10 25 15 10 25 15

Percentage%
10 % 25 % 15 % 10 % 25 % 15 %

Total

100

100%

Interpretation:
From the above table 50 % of the customers use Zxi. Remaining 30% of customers are use Sxi, and 20% of customers use Exi. It means fiesta Zxi is a market boom.

67

Make Every Day Exciting

Table – 3 The channel to know about ford fiesta. Came to know by.
Paper Add Tagging Mail Executive Event Road Shows Friends & Relations Total

No. Of Respondents.
10 10 15 20 20 15 10 100

Percentage%
10 % 10 % 15 % 20 % 20 % 15 % 10 100%

Interpretation:

68

Make Every Day Exciting

From the above table 40 % of the customers came to know by the executives & events. 30 % of the customers by road shows and mails. 30 % of the customers by paper add, tagging and relations.

Table – 4 Influence factors to afford ford brands. 1. Performance: Attributes
Excellent Very Good Good Fair Poor Total

No. of Respondents.
20 45 25 10 0 100

Percentage %
20 % 45 % 25 % 10 % 0 100%

Excellent Very Good Good Fair Poor

Interpretation:
From the above graph it is clear that 45% of people are satisfied with the ford car performance, 20% of people are fully satisfied ,25% of customers feel good performance and only for 10% its below average line.

69

Make Every Day Exciting

Table – 5 Safety system of ford brands: Attributes
Excellent Very Good Good Fair Poor Total

No. of Respondents.
20 30 40 10 0 100

Percentage %
20 % 30 % 40 % 10 % 0 100%

Excellent Very Good Good Fair Poor

Interpretation:
The above graph depicts 20% of customers are opinion was too good safety system , 70% people says it good system of safety and only 10% feel that below average.

70

Make Every Day Exciting

Table – 6 After Sales Service system: Attributes
Excellent Good Poor Total

No. of Respondents.
20 40 40 100

Percentage %
20 % 40 % 40% 100%

Interpretation:

71

Make Every Day Exciting

The above graph shows that on an average 60 % are satisfied with after sale service and only 40 % of customers are not satisfied with existing service system.

CHAPTER7

72

Make Every Day Exciting

FINDINGS & SUGGESTIONS

OBSERVATIONS
The research has brought to light various facts about customer relationship at Fortune Ford the questionnaire that was contact customers to obtain their feedback had helped to understand customer needs and wants and their feedback is providing to maintain better customer relationship.

1
2

It has been found that most of the customers were satisfied with the Ford Fiesta model. Ford Fiesta is maintaining a good position in the market among its competitors. Most of the customers satisfied with Dura technology, safety features and it’s performance. Some of the customers are satisfied with the mileage of Ford Fiesta. Some of the customers are came to know about the Ford Fiesta through the mailing and their friends and relatives. It is observed that the most of the corporate customers are attracted by the Corporate Offers which are provided by Fortune Ford. Majority of the respondent feel that Fiesta model is excellent and good value for money.

3 4 5 6 7

73

Make Every Day Exciting

8 9 10

It is observed that the customers are satisfied with the total maintenance plan. It is observed that most of the customers are highly satisfied with insurance and finance facility. Performance is one of the influencing factor to the customers.

SUGGESTIONS
After the analysing the data gather to the survey, the following suggestion’s are proposed:
1

In an attempt to maintain good relations, CUSTOMER CONTACT PROGRAM (CCP) is to be carried out every month to receive their feedback regularly.

2

Efforts should be made to contact the customers right after the sales this could help the management to receive precise feedback from the customers which might be possible through the CCP.

3

For increasing their sales the company should provide one or two event programs for every six months once. More number of customers are not highly satisfied with it’s service. Need improve the better services. Fortune Ford is increasing its potential customers in the last 3 months, for that the company should increase customer service centres in Hyderabad for customer convenience.

4
5

74

Make Every Day Exciting

6

Now a days, customers are looking for a free offers that are provided by company with vehicle, comparing to other competitors, considering this company should be provide more free offers..

7
8

Sales personal should be upgrade regularly with all the technical information and new pricing list about the vehicle. Efforts should be made to collect feedback after sales service.. Effort should be made to implement suggestions offered by the customers. Manufacture such a car, which is affordable by all income segments of people.

9 10

CHAPTER8
75

Make Every Day Exciting

LIMITATIONS

LIMITATIONS OF THE STUDY

The study is subjected to the following limitations. • A portion of the respondents contacted were not precise and genuine in giving their opinion of satisfaction or dissatisfaction. If accidentally they had badly experience at one instance, they would mark very poor. • • • • • To measure the exact level of customer relation the sample size was small. Short time period was inadequate for conducting detailed study among the customer. The study was restricted to Hyderabad and Secundrabad only. The study was limited to the capabilities and willingness of the respondents in appropriately answering the questions. The study was limited for a period of 45 days only.

76

Make Every Day Exciting

APPENDIX
77

Make Every Day Exciting

QUESTIONNAIRE
 Introduction & Purpose:

Good _________________. I’m _____________________________________ from St.Joseph’s P.G. College, HYDERABAD. As a part of my MBA curriculum, I am doing the project on “Customer Relationship Management”. I am doing this survey for the award of Master of Business Administration. Kindly, co-operate, the information given by you will be used for academic purpose only.

1. Do you have a Ford Motor car? a) Yes b) No

78

Make Every Day Exciting

Car Name & Model ________________________________.

2. Since how long you are using this car. 0 – 6 Months 1 year 2 years Above 2 years

3. Are you satisfied with the following services of your car. Maintenance: Value for Money: Insurance Facility: Warranty: High - 1 Good - 1 V. Good - 1 V. Good - 1 Low - 2 Fair - 2 Good - 2 Good - 2 Medium - 3 Poor - 3 Fair - 3 Fair - 3

4. How would you rate the performance of your car. Excellent 1 V. Good 2 Good 3 Fair 4 Poor 5

5. How would you rate the service of your Motor Company? (Please Rank). Excellent 1 V. Good 2 Good 3 Fair 4 Poor 5

a) Show room ambience b) Distance c) Appeal d) Reception (Proper Planning) e) Any other (please specify)…..

79

Make Every Day Exciting

6. How would you rate the sales person’s performance? (Please Rank). Excellent 1 V. Good 2 Good 3 Fair 4 Poor 5

a) Sales personnel knowledge (about product) b) Experience about Technical knowledge c) Behaviour d) Handling queries / problems 7. How would you rate the delivery terms of your Motor Company? Excellent 1 V. Good 2 Good 3 Fair 4 Poor 5

Timely / Promptly delivery Safely In condition Delivery Process

8. What are the value attributes you normally look while purchasing a Four Wheeler? Price Quality Style Brand Image Comfort Safety Performance Warranty

9. Are you aware about All Ford Models. Yes No

80

Make Every Day Exciting

YOUR VALUAB

emographic: Name : ____________________________________________.

Occupation: ____________________________________________. Ph No E-mail Id Address : _____________________________________________. : _________________________________________ ___. : _______________________________________ __ ____ ______________________________________________ _______________________________________________.

Thank you for sparing your valuable time.

81

Make Every Day Exciting

BIBILIOGRAPHY

Name of The Book

Author Name

Marketing Management

:

Philip Kotler

Fundamentals of Marketing

:

William J. Stanton Bruce J. Walker

Marketing Research

:

Donald S. Tull Dell I Hawkins

Web Sites:

www.india.ford.com

www.fortuneford.com

www.google.com

82

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.