CONTENTS

chapter Particulars Page number

Certificate

Declaration

Acknowledgement

Executive summary

1 Introduction

2 Research Methodology

3 Review of Literature

4 Results and Discussion

5 Suggestions and Conclusion

Reference
CHAPTER-1
INTRODUCTION:

MARKET:
A market is a place where two parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be physical like a
retail outlet, where people meet face-to-face, or virtual like an online market, where there is no
direct physical contact between buyers and sellers.

The term market also takes on other forms. For instance, it may refer to the place where
securities are traded—the securities market. Alternatively, the term may also be used to describe
a collection of people who wish to buy a specific product or service such as the
Brooklyn housing market or as broad as the global diamond market.

Understanding Markets:
Technically speaking, a market is any place where two or more parties can meet to
engage in an economic transaction—even those that don't involve legal tender. A market
transaction may involve goods, services, information, currency, or any combination of these that
pass from one party to another.

Markets may be represented by physical locations where transactions are made. These

include retail stores and other similar businesses that sell individual items to wholesale markets
selling goods to other distributors. Or they may be virtual. Internet-based stores and auction sites
such as Amazon and eBay are examples of markets where transactions can take place entirely
online and the parties involved never connect physically.

Markets vary widely for a number of reasons, including the kinds of products sold,
location, duration, size, and constituency of the customer base, size, legality, and many other
factors. Aside from the two most common markets—physical and virtual—there are other kinds
of markets where parties can gather to execute their transactions.

Black Market:

A black market refers to an illegal market where transactions occur without the knowledge of the
government or other regulatory agencies. Many black markets exist in order to circumvent
existing tax laws. This is why many involve cash-only transactions or other forms of currency,
making them harder to track.

Auction Market
An auction market brings many people together for the sale and purchase of specific lots
of goods. The buyers or bidders try to top each other for the purchase price. The items up for sale
end up going to the highest bidder.

The most common auction markets involve livestock and homes, or websites like eBay
where bidders may bid anonymously to win auctions.

Financial Market
The blanket term financial market refers to any place where securities, currencies, bonds,
and other securities are traded between two parties. These markets are the basis of capitalist
societies, and they provide capital formation and liquidity for businesses. They can be physical
or virtual.

The financial market includes the stock market or exchanges such as the New York Stock
Exchange, NASDAQ, the LSE, and the TMX Group. Other kinds of financial markets include
the bond market and the foreign exchange market, where people trade currencies.

MARKETING MANAGEMENT:

Marketing management is the organizational discipline which focuses on the practical

application of marketing orientation, techniques and methods inside enterprises and
organizations and on the management of a firm's marketing resources and activities

Marketing management employs tools from economics and competitive strategy to

analyze the industry context in which the firm operates. These include Porter's five forces,
analysis of strategic groups of competitors, value chain analysis and others.

In competitor analysis, marketers build detailed profiles of each competitor in the

market, focusing on their relative competitive strengths and weaknesses using SWOT analysis.
Marketing managers will examine each competitor's cost structure, sources of profits, resources
and competencies, competitive positioning and product differentiation, degree of vertical
integration, historical responses to industry developments, and other factors.

Marketing management often conduct market research and marketing research to

perform marketing analysis. Marketers employ a variety of techniques to conduct market
research, but some of the more common include:

1. Qualitative marketing research, such as focus groups and various types of interviews

2. Quantitative marketing research, such as statistical surveys

3. Experimental techniques such as test markets

4. Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various environmental scanning and
competitive intelligence processes to help identify trends and inform the company's marketing
analysis.

Brand audit:

A brand audit is a thorough examination of a brand's current position in an industry compared to

its competitors and the examination of its effectiveness. When it comes to brand auditing, six
questions should be carefully examined and assessed:

1. how well the business’ current brand strategy is working,

2. what the company's established resource strengths and weaknesses are,
3. what its external opportunities and threats are,
4. how competitive the business’ prices and costs are,
5. how strong the business’ competitive position in comparison to its competitors is, and
6. what strategic issues are facing the business.

When a business is conducting a brand audit, the goal is to uncover business’ resource
strengths, deficiencies, best market opportunities, outside threats, future profitability, and its
competitive standing in comparison to existing competitors. A brand audit establishes the
strategic elements needed to improve brand position and competitive capabilities within the
industry. Once a brand is audited, any business that ends up with a strong financial performance
and market position is more likely than not to have a properly conceived and effectively
executed brand strategy.

A brand audit examines whether a business’ share of the market is increasing, decreasing,
or stable. It determines if the company's margin of profit is improving, decreasing, and how
much it is in comparison to the profit margin of established competitors. Additionally, a brand
audit investigates trends in a business’ net profits, the return on existing investments, and its
established economic value. It determines whether or not the business’ entire financial strength
and credit rating is improving or getting worse.

This kind of audit also assesses a business’ image and reputation with its customers.
Furthermore, a brand audit seeks to determine whether or not a business is perceived as an
industry leader in technology, offering product or service innovations, along with exceptional
customer service, among other relevant issues that customers use to decide on a brand of
preference.

International marketing management

Globalization has led some firms to market beyond the borders of their home countries,
making international marketing a part of those firms' marketing strategy. Marketing managers
are often responsible for influencing the level, timing, and composition of customer demand. In
part, this is because the role of a marketing manager (or sometimes called managing marketer in
small- and medium-sized enterprises) can vary significantly based on a business's size, corporate
culture, and industry context.

For example, in small- and medium-sized enterprises, the managing marketer may
contribute in both managerial and marketing operations roles for the company brands. In a large
consumer products company, the marketing manager may act as the overall general manager of
his or her assigned product. To create an effective, cost-efficient marketing management
strategy, firms must possess a detailed, objective understanding of their own business and
the market in which they operate.  In analyzing these issues, the discipline of marketing
management often overlaps with the related discipline of strategic planning.
CUSTOMER RELATIONSHIP MANAGEMENT:

The emergence of services organizations in the corporate sector, the growing

competition due to liberalization, and the growing expectations of customers propelled by
globalization and facilitated by IT revolution - are defining new rules of game for existing
private and public enterprises in India. Telecom is one of the fast growing sectors among the
services. The mobile revolution has created a new wave of interest among people to utilize
telephone services.

The firms offering the services are vying with each other to capture this sudden spurt in
demand. They are using their technology and marketing prowess to attract new customers and
simultaneously retain their existing customers, make inroads into competition and at the same
time build entry barriers to competition to defend their position. Customer-driven initiatives to
attract, retain and build intimate long term relationship with profitable customers, innovation and
delivery of Quality Service have become the key elements in the marketing strategies.
Relationship Management with the three focal points – Customer Perceived Value, Customer
Satisfaction and Customer Loyalty – has become key success factor in achieving sustained
customer patronage and profitability to the firm. Customer Relationship Management (CRM) is
an effective tool to achieve this goal. The philosophy and practices of CRM in telecom has
caught the attention of policy makers, academicians and researchers.

Customer Relationship Management (or CRM) is a phrase that describes how your business
interacts with your customers. Most people think of CRM as a system to capture information
about your customers. However, that is only part of the picture. CRM involves using technology
to gather the intelligence you need to provide improved support and services to your customers.
In other words, CRM is also about what you do with that information to better meet the needs of
your existing customers and identify new customers, resulting in higher profits for you.

THE CRM BUILDING BLOCKS:

• A database that collects information about your customers.

• A way to analyze the information in the database.

• A strategy for applying the analysis to better meet your clients’ needs and identify potential
customers.

• Collecting data to ensure your strategy is effective.

• You care about their needs, questions and concerns.

• You want to deliver services and products

they need the most.

• You appreciate their business.

CRM will also benefit your company by allowing you to:

• Develop superior services and products that meet your customers’ identified needs.

• Enhance marketing towards the most profitable customers to improve your bottom line.

• Improve efficiency by providing support and services to customers online (through frequently
asked questions, for example).

• Anticipate future business needs based on data on historic sale and service trends.

• Increase your customer base as you develop new ways to engage in business online.

Online customers have a special set of expectations that set them apart from traditional
customers. In particular, they expect lots of information about your company and your products
to be available online with minimal searching, close to immediate service, opportunities for self-
service via your website, speedy shipment of products, and after-sales support. Therefore, you
need to consider CRM principles when doing business online.

WHO IS YOUR “CUSTOMER”? The “C” in CRM can have a narrow definition or a wide
one. For instance, customers can include not only those who buy from you, but also your
suppliers, your partners, your employees and your investors. Each of these “customer groups”
will have different needs that have to be managed. For the purpose of this booklet, we will focus
on the “customer” as someone who buys your products or services. This can be either a business
customer or an individual.

Benefits of CRM:

CRM is about making each and every customer feel like they have a one-to-one relationship with
you. Effective CRM gives you the opportunity to show your customers that:

• You know and recognize them.

• You understand them.

Building Value for You:

By compiling this information and analyzing it, you can then build a strategy with this
information to:

• Maximize repeat business opportunities by anticipating your existing customers’ needs.

• Identify your best customers.

• Identify potential customers.

• Identify complementary products you can sell to your customers.

• Target marketing campaigns/materials and promotions.

•Offer an online forum where customers can provide reviews and feedback; this also allows you
to hear about problems as they emerge and to respond quickly.

• Offer free products to your best customers.

• Offer incentives for additional or future purchases.

Aims of CRM:

The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to make the
customer climb up the ladder of loyalty.

The company first tries to determine who are likely prospects i.e. the people who have a strong
potential interest in the product and ability to pay for it. The company hopes to convert many of
its qualified prospect into first time customers and then to convert those first time customers into
repeat customers. Then the company tries to convert these repeat customers into clients – they
are those people who buy only from the company in the relevant product categories. The next
challenge for the company is to convert these client into advocates. Advocates are those clients
who praise the company and encourage others to buy from it.

The ultimate challenge is to convert these advocates into partners where the customers and the
clients work actively together to discover ways of getting mutual benefit.

Thus in CRM the key performance figure is not just current market share but share of life time
value by converting customers into partners.

Brief Introduction About Industry profile :

India contributes 6.3% of the total global aquaculture production and ranks 2nd after
China. The Indian Fisheries Industry, valued at about USD 15 billion, has emerged as a
significant high-value contributor and key enabler of diversified Indian agriculture. The industry
is also one of the substantial foreign exchange earners and accounted for 2% of the total export
earnings of India in the last four years (FY14 – FY17; refers to the period April 1 to March 31).

During FY17, the marine exports reached an all-time-high with an export value of
5.78 billion USD (compared with 4.69 billion USD in FY16) on the back of robust demand for
frozen shrimps in the international market. In the marine export basket, frozen shrimps export

has the lion’s share, contributing 65% of the total value of marine export in FY17. Indian
seafood, especially frozen shrimps, has gained popularity in the USA (accounting for 30 % in
terms of USD in FY17), South East Asian countries (30%) and European Union (18 %), and over
the last decade, it has enabled the sector to grow at a rapid pace.

The cultured shrimp production has grown with the introduction of the Vannamei
variety of shrimps in the commercial production, displacing the sales of the other major shrimp
species, especially the Black tiger which is more prone to viruses. Although India has a huge
marine wealth and a strong position in the global fisheries trade, the sector has been marred with
few challenges with respect to domestic market value chain, stringent regulatory approvals and
quality confirmations. The report provides an insight into the growth drivers that helped the
seafood processing industry achieve significant size in the global market, the key challenges
plaguing the industry, the supply chain dynamics, and also provides an impact analysis of recent
development in the regulatory and global political environment.

Growth drivers of shrimp culture in India Huge marine wealth India possesses
abundant and varied resources both in marine and inland sectors which facilitate development of
aquaculture business. The country has a long coastline of 8129 km in addition to vast inland
water resources and hence offers scope for large exploitation of marine wealth. Rapid
commercialization of Vannamei shrimps The aquaculture sector of India witnessed a boom with
the introduction of White leg shrimps (Litopenaeus Vannamei; also known as Penaeus
Vannamei) in 2004. Over the past decade, production and export of Vannamei shrimps has
outpaced the native species such as the Black Tiger which was the dominant farmed species until
2003.
 The dominant place that Black Tiger held in global shrimp farm production was due to a
number of factors, including their rapid growth rate, large harvest size and relatively high market
price. However, the growing importance of Vannamei variety is attributed to the favorable
characteristics of their commercial production in the form of higher adaptability to the
production environment (tolerance to varied temperature, salinity, etc.), superior disease
resistance capability, higher growth rate, ease of breeding and relatively higher demand in the
global market. The value of exported frozen shrimps slowed by -0.2% from $19 billion in 2014
to $18.99 billion during 2018.

Year over year, exports for frozen shrimps decreased by -7.3% from 2017 to 2018. In
contrast exports of fresh, salted and smoked shrimps fell precipitously from $522.7 million for
2014 to $35.7 million in 2018. There are six different Harmonized Tariff System (HTS) codes
for shrimps and prawns: 030613 and 030617 for frozen seawater shrimps and prawns; 030616
for frozen freshwater shrimps and prawns; 030623 and 030627 for fresh, salted or smoked
seawater shrimps and prawns; and 030626 for fresh, salted or smoked freshwater shrimps and
prawns.

Frozen Shrimp Exports by Country (Seawater)

Frozen seawater shrimps generated $17.2 billion in export sales during 2018, up by 2.8% from
$16.7 billion in 2014 but down by -6.5% from 2017 to 2018. Below are the 15 countries that sold
the highest dollar value worth of globally exported frozen seawater shrimps:
1. India: US$4.4 billion (25.4% of exported frozen seawater shrimps)
2. Ecuador: $2.9 billion (17%)
3. Vietnam: $1.9 billion (10.8%)
4. Indonesia: $1.3 billion (7.8%)
5. Argentina: $1.3 billion (7.6%)
6. Thailand: $694.3 million (4%)
7. China: $680.9 million (4%)
8. Bangladesh: $377.7 million (2.2%)
9. Mexico: $359.4 million (2.1%)
10. Spain: $347.5 million (22%)
11. Netherlands: $302.6 million (1.76%)
 12. Belgium: $249.4 million (1.5%)
13. Peru: $219.5 million (1.3%)
14. Malaysia: $189 million (1.1%)
15. Honduras: $186.4 million (1.1%)
By value, the listed 15 countries shipped 89.6% of all exported frozen seawater shrimps
in 2018. Among the above countries, the fastest-growing frozen seawater shrimps exporters
since 2014 were: Argentina (up 71.2%), Ecuador (up 50.6%), Peru (up 35%) and Mexico (up
33.6%).
Those countries that posted declines in their exported frozen seawater shrimps sales were led
by: China (down -49.5%), Malaysia (down -48.1%), Honduras (down -38.2%) and Vietnam
(down -25%).

Fresh, Salted or Smoked Shrimp Exports by Country (Freshwater)

Exports of freshwater fresh, salted or smoked freshwater shrimps were valued at $1.9
million for 2018, down -98.2% since 2014 but up by 1,308% from 2017 to 2018.
Below are the 4 countries that exported the highest dollar value worth of fresh, salted or smoked
freshwater shrimps.
1. Mozambique: US$1.9 million (98.1% of exported fresh, salted or smoked freshwater
shrimps)
2. Vietnam: $25,000 (1.3%)
3. Suriname: $10,000 (0.5%)
4. Guyana: $1,000 (0.1%)
By value, the listed 4 countries shipped 100% of all exported fresh, salted or smoked freshwater
shrimps in 2018.The fastest-growing shipper of fresh, salted or smoked freshwater shrimps since
2014 was Mozambique via its 15.3% value gain. The leading decliner was Guyana, down -87.5%
since 2014.

Brief Introduction About Company Profile:

Sri Alluri Venkateswara Rao, Founder Chairman of Avanti Feeds Limited, born on 7th July,
1933 in the Agriculturalists & Industrialists family in Kovvur, West Godavari District, Andhra
Pradesh. He was always inspiring the development. He had rich experience in the fields of
  Steel Rerolling

 Solvents Extraction

 Fertilizer & Pesticides

 Tobacco

 Amino Acids

 Aqua Feeds Manufacturing

 Aqua Products Processing & Exports

When the Blue revolution characterized by proliferation of aqua farms needed support for their
growth, Mr. Alluri Venkateswara Rao took lead with a vision to take the aqua industry into new
heights, established Avanti Feeds Limited in Kovvur, the central coastal belt, West Godavari
District, Andhra Pradesh, India, in the year 1994 with a technology tie-up with Pingtai
Enterprises, Taiwan and introduced international quality shrimp feeds for shrimp farming in
India. Thus the Aqua Industry had seen light in India.

He had further taken it to the heights creating sustainable markets for the shrimps
produced by the farmers in India by establishing “Aqua Products Processing & Export Division
(APED) meeting International standards with state-of-art infrastructure facilities in 1998 near
Ravulapalem, East Godavari District, Andhra Pradesh, India. APED offers complete hygienic
and value added aqua products for exports to USA, Japan, Australia and UK. Thus the Aqua
Industry further developed in India creating its charisma globally.

He started AVR Trust in 1999 with a vision to support Education Sector and fulfilled his
dream by establishing a Degree and PG College by name “ABN & PRR College of Sciences”,
Kovvur, West Godavari District, Andhra Pradesh. The College has modern infrastructure
facilities and offers Graduate and Post Graduate courses in Arts, Commerce and Sciences with
utmost discipline by eminent faculty. Thus he supported Educational Sector in the needy region.

Sri Venkateswara Rao helped several Institutions by his munificent donations. He donated
liberally to Educational Institutions, Hospitals and to Social service Activities. He is the major
donor for the following Institutions:

 Vignan Jyothi Educational Academy at Hyderabad

 Sanskrit College, Kovvur, West Godavari District, Andhra Pradesh

  Bhimavaram Hospitals, West Godavari Dist., Andhra Pradesh

 Old-age Home at Kannapuram, West Godavari District, Andhra Pradesh

About Avanti:

Avanti Feeds is the leading manufacturer of Prawn and Fish Feeds and Shrimp Processor and
Exporter from India. Avanti Feeds Limited has established joint venture with Thai Union Frozen
Products PCL., the world's largest seafood processors and leading manufacturer of prawn and
fish feeds in Thailand with integrated facilities from Hatchery to Shrimp & Fish processing and
Exports.

Prawn and Fish Feed Manufacturing Units

Avanti has Four Prawn and a Fish Feed Manufacturing Units, certified ISO 9001:2008, in
Kovvur, Vemuluru and Bandapuram in West Godavari District, Andhra Pradesh and Pardi in
Valsad District, Gujarat, in India with a capacity of 4,00,000 MT per annum. Avanti produces
nutritionally well balanced and high quality feed, consistently, catering to the Indian prawn and
fish farmers, at their door step.

Shrimp Processing and Exports Unit:

The Shrimp Processing and Exports Unit, certified ISO 22000: 2005 is located in
Gopalapuram near Ravulapalem, East Godavari District Andhra Pradesh, India and confirms to
HACCP, USFDA, EU & BRC Global standards. It is also an ACC Certified for best aquaculture
practices.

The state of art technology coupled with quality consciousness, excellent storage facilities,
logistics capabilities, timely deliveries and commitment to customer satisfaction has made
Avanti to be proud of a long list of loyal customers from USA, Europe, Japan, Australia &
Middle East.

Avanti has started its commercial operations in 1993 under the able leadership of Late
Sri Alluri Venkateswara Rao in technical collaboration with Pingtai Enterpries, Taiwan. Later his
son Sri Alluri Indra Kumar expanded the capacity and enhanced technical and marketing
capabilities by bringing on board Thai Union Frozen Products PCL., Thailand, the world's
largest seafood manufacturers and also having Feed Mill and Prawn Hatchery in Thailand. Today
Thai Union is closely associated with Avanti Feeds with equity participation, technical
collaboration and marketing tie-up in India.

BOARD OF DIRECTORS

As on 09-08-2019
 A. INDRA KUMAR

CHAIRMAN AND MANAGING DIRECTOR

C. RAMACHANDRA RAO

JOINT MANAGING DIRECTOR, COMPANY SECRETARY and CFO

N. RAM PRASAD

Director

A.V. ACHAR

Independent Director

K. RAM MOHAN RAO

Independent Director

AROKIA RAJ SALMON, IAS

Apidc Nominee Director

B.V. KUMAR

Independent Director

M.S.P. RAO

Independent Director

BUNLUESAK SORAJJAKIT
 Director

WAI YAT PACO LEE

Director

N V D S RAJU

Independent Director

Mrs.K.KIRANMAYEE

Independent Director

J V RAMUDU

Independent Director

A VENKATA SANJEEV

Executive Director
 AVANTI FEEDS LIMITED
COMPOSITION OF COMMITTEES OF THE BOARD
1.                   AUDIT COMMITTEE:
 
Sl.No. Name Category Designation
1. Sri. A V Achar Non-Executive Chairman
Independent Director
2. Sri.  B V Kumar Non-Executive Member
Independent Director  
3. Sri. M S P Rao Non-Executive Member
Independent Director  
4. Sri. K  Ramamohana Rao Non-Executive Member
Independent Director
 
5. Sri. C Ramachandra Rao Joint Managing Director, Compliance Officer
Company Secretary &
CFO
 
2.                   NOMINATION & REMUNERATION COMMITTEE:
 
Sl.No. Name Category Designation
1. Sri.  B V Kumar Non-Executive Chairman
  Independent Director
2. Sri. A V Achar Non-Executive Member
Independent Director  
3. Sri. K  Ramamohana Rao Non-Executive Member
Independent Director  
4. Sri.  A Indra Kumar Chairman & Member
Managing Director
5. Sri. C Ramachandra Rao Joint Managing Director, Compliance Officer
Company Secretary & CFO
 
3.                   STAKEHOLDERS RELATIONSHIP COMMITTEE:
 
Sl.No. Name Category Designation
1. Sri.  N. Ram Prasad Non-Executive Director Chairman
 
2. Sri. A V Achar Non-Executive Member
Independent Director  
3. Sri. Non-Executive Member
K  Ramamohana Rao Independent Director  
4. Sri. Joint Managing Director, Compliance
C Ramachandra Rao Company Secretary & cfo Officer
 
 
4.                  CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:
 
Sl No. Name Category Designation
1. Sri.  A Indra Kumar Chairman & Chairman
  Managing Director
2. Sri. N Ram Prasad Non-Executive Member
Non- Independent Director  
3. Sri. A V Achar Non-Executive  Independent Member
Director  
4. Sri.  B V Kumar Non-Executive  Independent Member
Director
5. Smt. K. Kiranmayee Non-Executive    Independe Member
nt Director 1
6. Sri. C Ramachandra Rao Joint Managing Director, Member &
Company Secretary & CFO Compliance Officer
 
KEY EXECUITIVES:

Mr. Alluri Indra Kumar

Shri Alluri Indra Kumar is Managing Director of Avanti Feeds Limited.

Born in Rajahmundry, Andhra Pradesh in 1962 in the family of agriculturists & industrialists,
Mr.Indra Kumar obtained B.E. in Chemical Engineering from University of Bangalore

He started his career as General Manager of SRINIVASA CYSTINE LIMITED, which was
engaged in manufacture and export of L-Cystine and other Amino Acids. After that, he was
nominated as Executive Director with full responsibility of the company. His achievements are:

Best Exporter Award by Govt. of Andhra Pradesh for the year 1989 - 90

Award by Indo-German Chamber of Commerce for the "Outstanding Achievement in Indo-

German Relations in 1991

Certificate of Merit given by Chemexcil "For Outstanding Performance" for the year 1992-93.

Best Exporter Award by Commerce & Export Promotion Department, Govt. of Andhra Pradesh
for the year 1992-93.

Award by Council for Industrial & Trade Development "For Export Promotion of Manufacture
of Non-Traditional Items" given by Shri Pranab Mukherjee, Union Commerce Minister, Govt. of
India in 1993.

"National Industrial Promotion Award for Best Exporters" by Council for Industrial & Trade
Development given by Dr.Manmohan Singh, Hon'ble Finance Minister, Govt. of India for the
year 1994-95.
"Navaratan Award for Best Export Performance" given by Dr.Shankar Dayal Sharma, H.E. The
President of India in 1996

During the year 1992, he was inducted as Director in to the Board of Avanti Feeds Limited. He
was appointed as Executive Director, with responsibility to look after the shrimp feed
manufacture, processing and exporting of shrimp. In the year 2002, Mr.Alluri Indra Kumar took
over as Managing Director.

Mr.Indra Kumar, with his varied experience is instrumental in development of shrimp culture
and processing by bringing-in latest technology in feed manufacture and also development of
value added shrimp products for exports, earning valuable foreign exchange to the country.

Mr. Indra Kumar enhanced Avanti's technical and marketing capabilities by bringing on board
Thai Union Frozen Products PCL., Thailand, the world's largest seafood processors and also
having Feed Mill and Prawn Hatchery in Thailand. Thai Union is closely associated with Avanti
Feeds with equity participation, technical collaboration and marketing tie-up in India.

Mr.Indra Kumar has vast experience in foreign trade by virtue of his past and present
involvement in import & export business. He has developed new customers in USA, Europe,
South Africa for value added Indian marine products. He has created Brand image for 'AVANTI'
brand shrimps. He is also instrumental in implementing traceability system effectively, which is
assuming most important factory for sustaining / developing export market.

In recognition of the achievements, the following Awards were given to group

companies by the Government and Other Agencies.

Best Exporter Peformance Award in the field of Aquaculture for the year 2001-02 given by Shri
Ch.Vidyasagar Rao, Hon'ble Minister of State for Commerce & Industry, Government of India.

Best Exporter Peformance Award in the field of Aquaculture for the year 2002-03 given by Shri
Ch.Vidyasagar Rao, Hon'ble Minister of State for Commerce & Industry, Government of India.

Mr.Indra Kumar is co-founder of LAXAI-AVANTI Life-sciences Pvt. Ltd. The Company

provides Integrated Drug R&D outsourcing platform with capabilities ranging from discovery to
regulatory submissions backed by data management

Mr.Indra Kumar is Co-Promoter and Director of Patkari Power Pvt.Ltd., a 16 MW Hydro-

electric power station located in Himachal Pradesh and "Srivathsa Power Projects Ltd.," 17.2
MW Gas based power station located in Sivakodu, East Godavari Dist.

Mr.Indra Kumar is also Governing Body member of Vignan Jyothi Educational Institutions,
Hyderabad.
Mr.Indra Kumar is Chairman of AVR Trust. The Trust offers best quality education to thousands
of poor and needy students through ABN & PRR College of Science located in Kovvur, West
Godavari District.

Mr.Indra Kumar takes personal care of the "Home for the Aged" which was started by his mother
Late Smt. Alluri Subhadra Devi under "Sowbhagya Durga Trust" in Kannapuram, West
Godavari District. The inmates are provided shelter, food and medical care, completely free of
cost, in a very pleasant and peaceful environment surrounded by the beautiful green gardens and
flower beds. Temple of Goddess Sowbhagya Durga, the divine power is portrayed in this
Campus.

Mr.C.Ramachandra Rao:

Mr.C. Ramachandra Rao is the Joint Managing Director and Company Secretary of
AVANTI FEEDS LIMITED, CFO of LAXAI AVANTI Life Sciences Pvt. Ltd., Director in
Patkari Power Pvt.Ltd., Managing Director in Srivathsa Power Projects Ltd., Director in Sanjeev
Agro-vet Pvt.Ltd., Director in Srinivasa Cystine Ltd.

Mr.C.Ramachandra Rao, aged 54 years is a qualified Chartered Accountant, Company Secretary

and Law Graduate, has vast experience of over 25 years in Government and public sector
undertakings. He has been instrumental in start up and growth of Avanti Feeds Limited, a largest
Aqua feeds manufacturing company in India.

As a member of the Strategy Team, he focuses on Avanti’s strategic partnership and growth
initiatives. He guides the initiatives of Avanti Group. He plays a critical role in Avanti’s Finance
Functions, particularly Resource Mobilisation, Framing up of financial policies, Mergers &
Acquisitions and Investor Relations.

Mr.N.Chidambar, General Manager:

Mr.N.Chidambar aged 41 years is a graduate in fisheries Science. He has about 18 years

experience in seafood processing, quality control and international marketing. He has been
associated with Avanti for the last 6 years.

Mr.S.Mohanty, Dy. General Manager:

Mr.S.Mohanty aged 41 years is a Post Graduate in Fisheries Sciences from CIFE, Mumbai (Gold
Medalist). He has about 17 years core experience in Aquaculture feed marketing, retailing,
distribution and supply chain management. He is instrumental for the aquaculture technology
developments and transfer. He is associated with Avanti for the last 15 years.

PRAWN & FISH FEED PRODUCTS

Products & Salient features

Avanti produces the following international quality feeds for Prawn and fish in collaboration
with worlds renowned Prawn & Fish feed manufacturers Thai Union Feed Mill Co.Ltd.,
Thailand and Pingtai Enterprises Co.Ltd., Taiwan.

PRAWN FEED

 PROFEED

 TITAN

 MANAMEI

 CHAMP

SCAMPI FEED

 CLASSIC

 SCAMPRO

FISH FEED

 MERMAID

Salient Features:

 Made from international quality raw-materials

 Nutritionally well balanced and Excellent FCR

 Ideal Water Stability and maintains eco-friendly water quality

 Greater appetite, faster Growth with high Survival rate of shrimps / fish

 Higher yields Higher Profits

Quality Control & Quality Assurance:

At Avanti the following measures are undertaken to ensure that the products meet the
international quality standards:

 Qualified and Experienced Team

 Stringent tests for evaluation of raw material quality.

 Close monitoring and testing at every stage right from the raw materials to the finished

product

 Proper Storage facilities

 Stringent Process Controls

 Excellent Packing & Handling facilities

 Transportation of finished product with proper handling and timely delivery.

 Resolving farmer Complaints within 48 Hrs.

 Adequate Traceability System

 Culture Record, Assisting farmers to maintain periodical records and advising farmer for

better results.

 Constant interaction with farmers to take feed back and improve performance.

Technical and other Support services to the farmers:

Avanti Feeds Limited is serving shrimp and fish farmers through its highly equipped quality
testing Labs in the coastal regions Kakinada, Amalapuram, Malkipuram & Gudivada for Shrimp
Seed Quality Analysis, PCR testing and Water & Soil tests for Shrimp Culture

Guiding the farmers in Seed Selection, Culture Practices through Qualified and Experienced
Technical staff

Option to farmers to supply shrimps to Avanti's processing plant.

 NEED FOR THE STUDY

The present study is a part and parcel in MBA curriculum, after completion of 1st year during the
summer I have undergone project work at this juncture I have chosen Hr and finance as my
specialization subjects, in this Finance is my favorite subjects I have decided to do my project in
Finance area for that the present topic has been selected. It is my duty to fulfill the curriculum
which will helps us to new look inside of the learning that has been processed or taken into
consideration therefore, as per the norms and regulations of the ADIKAVI NANNAYA
UNIVERSITY. I have opted to do research project according to my interest in the field of
Finance the main reason behind for choosing this topic is to get an in-depth of study of the cash
flow statements and analyze them.

The CRM (customer relationship management) is an integrated effort to strengthen the network

of relationship for the mutual benefit of both the parties. The biggest management challenge in

the new millenium of liberalization and globalization for a business is to maintain good

relationship with the king – the customer. This study is of great significance because

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

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

3. 20% of the company’s loyal customers account for the 80% of its revenues.

4. To study on customer relationship management would enable the researcher to know

about the CRM practices adopted in the industry.

OBJECTIVES OF THE STUDY

 To examine the history and importance of company.

 To know the managerial effectiveness of Avanti Feeds Pvt Ltd.

  To study the current practices of CRM

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

 To study the factors affecting the CRM practices.

 To study the role of information technology in CRM.

LIMITATIONS OF THE STUDY

 The time given to complete this project is very limited,

 The study is based on accounting information.

 The analysis is made from the information given by the organization.

 The study was conducted with limited data available and analysis was

done accordingly.
CHAPTER-2
 RESEARCH METHODOLOGY

RESEARCH:
Research is defined as a careful consideration of study regarding a particular concern or a
problem using scientific methods. According to the American sociologist Earl Robert Babbie,
“Research is a systematic inquiry to describe, explain, predict and control the observed
phenomenon. Research involves inductive and deductive methods.”
Inductive research methods are used to analyze the observed phenomenon whereas,
deductive methods are used to verify the observed phenomenon. Inductive approaches are
associated with qualitative research and deductive methods are more commonly associated
with quantitative research.
One of the most important aspects of research is the statistics associated with it,
conclusion or result. It is about the “thought” that goes behind the research. Research is
conducted with a purpose to understand:
 What do organizations or businesses really want to find out?
 What are the processes that need to be followed to chase the idea?
 What are the arguments that need to be built around a concept?
 What is the evidence that will be required that people believe in the idea or concept?
Characteristics of Research
1. A systematic approach is followed in research. Rules and procedures are an integral part of
research that set the objective of a research process. Researchers need to practice ethics and code
of conduct while making observations or drawing conclusions.
2. Research is based on logical reasoning and involves both inductive and deductive methods.
3. The data or knowledge that is derived is in real time, actual observations in the natural
settings.

4. There is an in-depth analysis of all the data collected from research so that there are no
anomalies associated with it.

5. Research creates a path for generating new questions. More research opportunity can be
generated from existing research.
6. Research is analytical in nature. It makes use of all the available data so that there is no
ambiguity in inference.

7. Accuracy is one of the important character of research, the information that is obtained while
conducting the research should be accurate and true to its nature. For example, research
conducted in a controlled environment like a laboratory. Here accuracy is measured of
instruments used, calibrations, and the final result of the experiment.
Basic Research: 
Basic research is mostly conducted to enhance knowledge. It covers fundamental
aspects of research. The main motivation of this research is knowledge expansion. It is a non-
commercial research and doesn’t facilitate in creating or inventing anything. For example, an
experiment is a good example of basic research.
Applied Research: 
Applied research focuses on analyzing and solving real-life problems. This type of research
refers to the study that helps solve practical problems using scientific methods. This research
plays an important role in solving issues that impact the overall well-being of humans. For
example, finding a specific cure for a disease.
Problem Oriented Research: 
As the name suggests, problem-oriented research is conducted to understand the exact
nature of the problem to find out relevant solutions. The term “problem” refers to having issues
or two thoughts while making any decisions.
For e.g Revenue of a car company has decreased by 12% in the last year. The following could be
the probable causes: There is no optimum production, poor quality of a product, no advertising,
economic conditions etc.
Problem Solving Research:
This type of research is conducted by companies to understand and resolve their own
problems. The problem-solving research uses applied research to find solutions to the existing
problems.
Qualitative Research: 
Qualitative research is a process that is about inquiry, that helps in-depth understanding of
the problems or issues in their natural settings. This is a non- statistical research method.
 Methodology is an intensive and purposeful search for knowledge and for the understanding
of social and physical phenomenon. It is the method for the discovery of true values in a
scientific way.

Research Design:
Research Design pertains to the great research approach or strategy adopted for a
particular project. A research project has to be the conducted scientifically making sure that the
data is collected adequately and economically.
The study used a descriptive research design for the purpose of getting an insight
over the issue. It is to provide an accurate picture of some aspects of market environment.
Descriptive research is used when the objective is to provide a systematic description that is as
factual and accurate as possible.

There are two sources of data,

 Primary Sources and

 Secondary Sources

Primary Data:

The data which is collected at first hand for the purpose of the study is known as primary data.
Primary data which is collected through interaction with the assistant financial manager of Avanti
Feeds pvt LTD company.
Primary sources:
It is also called as first handed information; the data is collected through the observation in the
organization and interview with officials. By asking question with the accounts and other persons in
the financial department. Apart from these some information is collected through the seminars, which
were held by Avanti Feeds pvt LTD company.
Secondary Data:
The data which is corrected by some one previously is called secondary Data. It is already
available in the form of internal records of the company and other publications.
Secondary sources:
The secondary data have been collected through the various books, magazines, broachers &
websites
CHAPTER-3
 THEORETICAL FRAMEWORK
Introduction:

The emergence of services organizations in the corporate sector, the growing

competition due to liberalization, and the growing expectations of customers propelled by
globalization and facilitated by IT revolution - are defining new rules of game for existing
private and public enterprises in India. Telecom is one of the fast growing sectors among the
services. The mobile revolution has created a new wave of interest among people to utilize
telephone services. The firms offering the services are vying with each other to capture this
sudden spurt in demand. They are using their technology and marketing prowess to attract new
customers and simultaneously retain their existing customers, make inroads into competition and
at the same time build entry barriers to competition to defend their position.
Customer-driven initiatives to attract, retain and build intimate long term relationship
with profitable customers, innovation and delivery of Quality Service have become the key
elements in the marketing strategies. Relationship Management with the three focal points –
Customer Perceived Value, Customer Satisfaction and Customer Loyalty – has become key
success factor in achieving sustained customer patronage and profitability to the firm. Customer
Relationship Management (CRM) is an effective tool to achieve this goal. The philosophy and
practices of CRM in telecom has caught the attention of policy makers, academicians and
researchers.
EMERGENCE OF CRM:

The origins of a relationship-based approach to a firm’s management emerged from

academics and practitioners in the fields of strategy, marketing and supply chain management
(Bagozzi, 1974, 1975; Berry, 1983; Osarenkhoe, 1992; Gummesson, 1999; Zineldin, 2000;
Nielsen et al., 2003; Martin and Bush, 2003). In the mid-1970s, Bagozzi (1974, 1975) began to
gain an understanding of marketing activities as an exchange between the seller and buyer –
thereby forming a basis for subsequent conceptualization of relationship marketing. The question
is to understand how the relationship develops and changes over a period of time.
 The possibility of delineation of phases within a relationship makes it necessary to
explicitly design relationship marketing. This conceptualization first appeared in the early 1980s
in the research field of services marketing (Berry, 1983; Dwyer et al., 1987; Ford, 1980;
Hammarkvist et al., 1982; Jackson, 1985; Kim and Kim, 2001; Guenzi and Pelloni, 2004;
Matthing et al., 2004; A kerlund, 2005). Concept of Relationship Marketing The concept of
Relationship Marketing was born within the field of service marketing and industrial marketing
(Berry, 1983; Gummesson, 1987; Christopher, Pyne, and Ballantyne, 1991).

In 1992, Webster reported that there has been a paradigm shift from a ‘transaction’ to a
‘relationship’ focus. From a narrow focus on ‘volume and profit-maximization’ marketing has
matured into a broad orientation with emphasis on establishing ‘long-term customer
relationships’ and managing strategic alliances with customers directly and through their other
supply chain associates.

Drivers of CRM:

Jagadish N.Sheth (2002) observes that energy crisis that led to stagflation and
competition in industries like consumer electronics, textiles, steel and chemicals made industry
to realize that retention of customers is more important than acquiring new ones. Possibilities in
management of services such as telephones, health care and power, to keep record of transactions
over a period of time for analyzing the quality of customer service and response patterns etc. has
increased the scope to analyze the implementation of tactics and their outcomes. Practice of
business partnering by way of offering consultancy and collaboration to B2B customers for
improving the outcomes of service, encourages industrial marketers to opt to directly service key
accounts.

In the supply chain the collaborative relationships have become common practices.
Information technology has increased the scope to adopt innovative styles in customer service.
The sales automation, customer data bases and cross-functional integration through Enterprise
Resources Planning (ERP) have expanded the scope for relationship marketing since the mid-
1990s.

DEFINITIONS OF CRM:
 The term relationship marketing was first coined by Berry in the context of services
marketing. Relationship marketing is ‘attracting, maintaining and enhancing customer
relationships’. Servicing and selling existing customers is viewed to be as important to long-term
marketing success as acquiring new customers (Berry 1983).

This concept is extended by Gro¨nroos to include channels and some operational

aspects. “Relationship marketing is to establish, maintain and enhance relationships with
customers and other partners, at a profit, so that the objectives of the parties involved are met”.
This is achieved by a mutual exchange and fulfillment of promises (Gro¨nroos, 1994). He
indicates that beyond commercial interest, partners recognize the mutual benefit to be derived
from such relationships. Christopher et al. (1991) define the function of relationship marketing as
“getting and keeping customers”. They highlight the importance of customer 5 service and
quality if the firm is to gain and maintain a long-term relationship with the customer.

According to Shani and Sujana (1992), relationship marketing is “an integrated effort to
identify, maintain and build up a network with individual consumers and to continuously
strengthen the network for the mutual benefit of both sides, through interactive, individualized
and value-added contacts over a long period of time''. They contend that developing a long-term
relationship with the customer enables the firm to add value to its offerings.

Gummesson (1995) defines relationship marketing as “relationships, networks and

interactions”. He emphasizes that the strength of the relationship can be enhanced through the
networks that the firm is able to develop, and from which all stakeholders benefit. Morgan and
Hunt (1994) refer to relationship marketing as “those activities directed towards establishing,
developing and maintaining successful relational exchanges’’. They emphasize on maintenance
of relationship and highlight the importance of trust, cooperation and shared values in
maintaining a successful relationship. In the next phase the relationship management has gone
beyond marketing function and the word customer relationship management was coined to
broaden the scope of relationship creation, development and maintenance.

The Gartner group (2000) defines CRM as “Management discipline and a philosophy that
requires businesses to recognize and nurture relationship with customers. With CRM, a
customer’s needs and preferences are available to anyone working in the business at the
customer interface, regardless of channel. Each customer is treated as an individual in a
relationship that creates feeling of one-to –one. Woodlock et.al. (2000) define CRM as ‘finding
the right customers (those with current and future net value, viable for establishing durable
relationship), getting to know them (as individuals and as groups), growing their value (if
appropriate and viable) and retaining their business in an efficient and effective way’.

The different definitions on CRM are philosophically similar but operationally differ
by their emphasis. Some highlighted objectives, some others laid emphasis on approaches and
others talked about benefits. In defining what is to be done, some have chosen the broad areas
like establishing, maintaining and retaining whereas others talked about specific acts like selling
and servicing etc. Characteristics of CRM CRM as compared to traditional marketing involves
series of transactions, regular and continuous interactions beyond simple exchange process, long
term objectives, bonds involving investment of time and energy to produce positive interactions,
investment by the parties, some switching barriers, elastic and permeable boundaries, holistic
approach and systematized offers.

In India CRM have deep roots in the practices of business. The business men used to
establish bondages with customers at emotional level, especially in small towns and villages.
However, in modern corporate world, CRM has appeared as a new concept in the mid-1990s,
more as a technology that would change dramatically the way corporations managed their
networks and interaction points with customers (Rado Kotorov,2003). Thus the modern CRM, in
its early stages, was deployed as a technology solution: a software package that was bought and
installed to facilitate or automate some marketing functions.

The terms “sales-force automation”, “campaign automation”, “customer support

automation” were often equivocated with CRM, even though they stand only for different
components of the enterprise-wide CRM strategy. Shortly after the deployment of such packages
it became evident that they were not used as planned and remained as show pieces. (Albert
Stroucken, CRM, August 2002). As the technology/project approach failed, discussion on
strategic approach took place with a need to focus on customer and consider technology only as a
tool. In mid-1990s, it was thought that merging customer data collected from the field by sales
force with call center interactions would result in more informed interactions with the customers.
The concept resonated with user organizations.
 Soon mergers and acquisitions gave rise to a host of 8 software vendors, all claiming to
have an integrated set of capabilities that became known as CRM. On a parallel track, internet-
based tools such as ecommerce, internet marketing (Yang and Fang, 2004), personalization (Jun
and Cai, 2001) and self-help (Walters and Lancaster, 1999; Parasuraman et al., 2005) were
evolving. Owing to the newness of the technology, these products competed outside of the CRM
sphere and were referred to as “e-business”. When the concepts of CRM and e-business molded
together (Light, 2003; Fjermestad and Romano, 2003; Bull, 2003), there was a short period
where vendors talked about e-CRM. Similarly, ERP vendors realized that the 360- degree view
of the customer had to include transaction data, so they developed an integrated package with
CRM capabilities.

Thus, from a technology perspective, CRM consists of a set of applications that address the
needs of customer-facing functions that in turn feed a common database that is supported by
business analysis tools. Models of CRM Philosophically, CRM is seen from three perspectives.
(i) Stakeholder model: Relationship management and marketing are powerful tools for
developing long-term relationships with clients, suppliers and distributors.

(ii) Supply chain model: Relationship between channel participants is the key strategy for pursuit
of efficient supply chain. This minimizes the costs of 9 transactions and the entire supply chain
costs (McLaren et al., 2002; Robson and Rawnsley, 2001; Raymond, 2001; Zhuang and Zhou,
2004).

(iii) Marketing concept model: Every customer relationship is important for profitability.
Relationship with existing customers is the lifeblood of a business organization and is paramount
for the future direction of the business.

Organization must deliver what the market needs and wants. Deliver more efficiently,
effectively and add more value than competitors. Both internal and external marketing efforts are
necessary to do this successfully. The aim of marketing is to create a customer, who is
enthusiastic about company. The customer whose expectations are met or exceeded by the actual
performance is satisfied and delighted.

The company’s interest in customer welfare and its motive to benefit customer would
naturally lead to mutual trust and this will gradually develop into an emotional bond of
commitment, eventually leading to loyalty. Customer becomes more loyal, making significant
use of the entire range of company services (cross selling) patronizing the company over its
competitors. Furthermore, this is accompanied by positive word-of-mouth communication and
tolerance to unintentional lapses and benevolence to share the information for mutual benefit.
Contrarily, in case the customer is dissatisfied, it is possible that the customer may even turn into
a ‘terrorist (Jones and Sasser, 1995, pp. 96-7) towards the company, causing the firm extra
costs’. Dissatisfied customer may also dissuade other current or potential customers from dealing
with the firm.

Principles of CRM:

The basic underlying principles guiding development of CRM can be summarized as:

1. Principle of ‘Customer Life Time Value (CLV)’

2. Principle of ‘Customer Satisfaction (CS)’

3. Principle of ‘Customer Loyalty’

4. Principle of ‘Wallet share of Customer’

5. Principle of ‘Cross Selling and Up Selling’

6. Principle of ‘Customer Profitability’

CRM PRACTICES - TOOLS OF BUSINESS STRATEGY Customer Relationship

Management is a corporate level strategy, focusing on creating and maintaining relationship with
customers. Berry(1983) recommended the following five strategies for practicing relationship
marketing. • Developing a core product/service around which customer relationship is built.

• Innovatively augmenting and adding value through value added features/services.

• Customizing the relationship to the individual customer.

• Pricing services to encourage customer loyalty.

• Marketing CRM internally to the employees so that they perform well with customers.
Promoting employee to customer relationships and top it up with customer to customer
relationship to reinforce the good feelings.

The basic CRM strategy is based on the traditional idea that knowledge of customer
and commitment to service the customer is the best method of developing a sustainable
competitive advantage. But building a successful and sustainable relationship with a large
customer base is not the easiest thing to do and carries a direct impact on many core operational
processes. At the heart of a perfect CRM strategy is the creation of mutual value for all the
parties involved in the business process.

It is about creating a sustainable competitive advantage by being the best at choosing,

designing, providing, communicating, and delivering the value to the existing customers as well
as creating and keeping new customers. It addresses the changing needs of the customers by
developing products and services that continuously appeal to individual customers.
Organizations structure their efforts around customer segments than products to deliver customer
satisfaction. Organizations deploy objectives, goals and performance measures, which measure
customer satisfaction/dissatisfaction and input the outcomes into their plans and strategies.
Complaints Management Most organizations traditionally rely on customer complaints to
ascertain customer satisfaction.

Unfortunately the average business firm never hears from 96% of their unhappy
customers. 91% of customers will never come back, they have to be got back. Only 4% of dis-
satisfied customers will complain (SPSS: White paper 1996). Therefore according priority to
customer satisfaction and its effective measurement has become important to proactively satisfy
the customers than waiting for a complaint, watch customer complaint behavior and resolve the
complaint.

Beyond Complaints Management Effective organizations no longer use customer

complaints alone to measure customer satisfaction. They adopt rigorous qualitative and
quantitative mechanisms to measure customer satisfaction. Measuring customer satisfaction
provides feedback on success of an organization in providing products and/or services to the
satisfaction of customers at the market place and market space. Organizations have to take
proactive and reliable steps towards improving the perceived value and manage customer
satisfaction more effectively.

CRM AND BUSINESS PROMOTION

Role of CRM in business promotion is illustrated by the model given below.

Acquire New Customers CRM is a corporate level strategy, focusing on customer

acquisition by creating and maintaining relationships with customers. Retention An effective
CRM system is able to identify factors important to clients, promote a customer oriented
philosophy, adopt customer based measures, develop end-to-end processes to serve customers,
provide successful customer support, handle customer complaints, track all aspects of sales,
create a "holistic" view of customers' sales and service information.

The long-term success of an organization depends mainly on how well it attracts and
retains a large customer base. Key Account Focus As business develops, companies start
accumulate accounts/segments which are unviable and non-profitable, yet place demands on the
resources of organization disproportionate to the returns, resulting in the dilution of focus on the
accounts and segments which are key to business success. Key account management would help
continuous review, identification of key accounts/segments and allocate resources proportionate
to their contribution to the business.

Business Continuity Managing relationships with customers is very important for

organizations since improved relationships increase business value. CRM helps in leveraging
information regarding customer behavior to make repeat buying possible and improves average
revenue per user through repeat purchase, cross selling and up selling. Loyalty and Life Time
Value CRM helps to achieve high levels of customer satisfaction, retention, and loyalty - all
resulting in improved profitability over a life time of customer.

CRM IN TELECOM

Telecommunications are changing rapidly. Rapid developments such as 3G and 4G are changing
the infrastructure and the way people interact. The service providers are facing the problem of
high costs. The subscribers are the source of income, along with advertisers and sponsors. As the
products/services are similar among competing service providers, the focus is on how to create a
long lasting relationship with the subscribers. Furthermore, this relationship must be manageable
in a cost-effective manner. CRM makes this focus possible and if implemented correctly, will
manage the relations in cost-effective way (Storbacka & Lehtinen, 2000). When service
providers put more focus on subscribers, the CRM systems become important.

The CRM process is a continuous learning process where information about

individual customer is transformed into a customer relationship. The basics of CRM are the same
disregarding what line of business the company is in, including the telecom industry. However,
what is important in telecommunications is to integrate the CRM system with the systems for
service provisioning, activation and mediation. The service provisioning area relates to services,
solutions and systems that handle activation of subscriber service requests. Activation brings the
individual subscriber’s service alive and mediation is collecting data about the subscriber’s
traffic.

Knowledge of and intimacy with customer will help designing customer oriented
services, processes and value chains and organize customer friendly 16 systems and service
centers. Network quality and coverage, competitive tariff tailored to needs of different segments,
brand image, customer service and value added services are some of the important factors that
enhance perceived value of telecom services. Because of vast customer base and large scale
operations, CRM in telecom is technology aided strategy with firm market orientation and
customer focus. Basic management functions of setting goals and standards, organization of
resources, service quality management and delivery of customer service through service centers
and franchisees, continuous communication, internal marketing and performance management
need to be carried out with market orientation and ‘customer first’ philosophy.

INDIAN TELECOM AND BHARAT SANCHAR NIGAM LIMITED (BSNL)

The introduction of mobile communication services has changed the life styles of
people across the globe. Connectivity found a new meaning as the geographic and time barriers
are crossed and instantaneous communication and response was established. 1.6.1 Profile of
Indian Telecom Market Indian telecom business has changed significantly in last five years. As
per TRAI annual reports subscribers base for wire lines which was 40.75 million in March 2007
has come down to 31.49 million by June 2012. During this period the wireless subscriber base
has gone up from 165.11 million to 934.09 million. In terms of percentage proportion the share
of mobile phones 17 has gone up from 80.19% to 96.75% during last five years. BSNL which
had virtual monopoly over landline had to face this dramatic change in the scenario. Private
sector players, who launched mobile phones first and later expanded into wire line, had a better
time during this period. The share of private sector has grown from 51.8 percent to 86.9 percent
during last five years. Tele density (number of telephones per 100 population) – has increased
from 18.22 in 2007 to 79.58 in June 2012.

The urban tele-density has gone up from 47.2 to 162.46 during this period. Rural
tele-density not only kept pace with urban and also but exceeded it in the last two years. It is at
40.66 in June 2012 against 5.89 in 2007, indicating the steep growth of telecom market in rural
India. Private sector which focused on urban market initially started expanding in to rural market
with focus on mobile services. Rural market has jumpstarted into wireless and growing in
wireless segment by-passing the wire line segment altogether. BSNL has strong infra-structure in
rural India and this development would be a plus point for BSNL, if the company could keep up
the growth pace.

International Trends and Indian Market From Table 1.2 which indicates the
international trends in the telecom business in respect of subscriber base, subscriber addition in
2011, wireless penetration, MOU (average minutes of usage per subscriber), tariff per minute in
US Dollars, it can be seen that India is the second largest market in the world next to China.
Average revenue per user and average minutes of usage 18 per subscriber per month are low
compared to China and many other countries. This indicates the price sensitive nature of Indian
market.

Emerging Indian Rural Market Even in the rural market, the wire line market has shrunk. The
rural market has moved up the ladder straight into wireless segment because of convenience and
value addition of this product. Table 1.7 gives the details of subscriber base in rural market.
After 2011 there is deceleration in the growth 21 even in the rural market, though its growth is
better than urban markets indicating the untapped potential of Indian rural market.
Eight ways to keep customers for life:

1. Every part of the company’s marketing effort should be geared towards building lifetime
relationships.

2. People want to do business with friendly people. To have effective relations a friendly attitude
must permeate in the organization.

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

4. The company should always be flexible to bend its rules and procedures in the client’s favor.

5. The company should communicate with its customers even when it is not trying to sell
something.

6. The company can communicate and develop stronger customer bonding by providing financial
and social benefits.

7. The company should try to know all its customers including their lifestyles, hobbies, likes and
dislikes etc.

8. The company should make it a point to deliver more than what is promised.
Why – customer relationship management:
Ø A satisfied customer in 10 years will bring 100 more customers to the company.
Ø It costs 7 time more to attract a new customer than to serve an old one.
Ø 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s principle).
Ø The chances of selling to an existing customer are 1 in 2, the chances of selling to a new
customer are 1 in 16.

The biggest management challenge in the new millennium of liberalization and

globalization for a business is to serve and maintain good relationship with the king – the
customer. In the past producers took their customers for granted, because at that time the
customers were not demanding nor had alternative source of supply or suppliers. But today there
is a radical transformation. The changing business environment is characterized by economic
liberalization, increasing competition, high consumer choice, demanding customer, more
emphasis on quality and value of purchase etc.

All these changes have made today’s producer shift from traditional marketing to
modern marketing. Modern marketing calls for more than developing a product, pricing it,
promoting it and making it accessible to target customer. It demands building trust, a binding
force and value added relationship with the customers.

The process of developing a cooperative and collaborative relationship between the

buyer and seller is called customer relationship management shortly called CRM. According to
Ashoka dutt head of Citi Bank “the idea of CRM is to know the individual customer intimately,
so that the company has a customized product ready for him even before he asks for it.”
Chapter -4
 Results and discussion
1. Who are your customers?

a) Wholesaler
b) Retailers
c) Both

Type of customers

Both; 10; 9%

Wholesaler
Retailers
Wholesaler ; 57; 52%
Retailers ; 43; 39% Both

INERPRETATION:

From the above analysis it is found that the company is having maximum percentage of customers who
are wholesalers of about 57% and about 43% of retailers and 9% of both the retailers and wholesalers .
2. Are your customer’s needs clearly defined ?

a) Yes

b) No

customers needs
No; 17; 17%

Yes
No

Yes ; 83; 83%

INERPRETATION:

From the above analysis it is found that the company identifies customers needs and results shown that
83% of the surveyors opted yes and 17% of the surveyors opted no
3. Do you conduct customer satisfaction surveys?

a) Yes

b) No

Customer satisfaction surveys

No; 24; 24%

Yes
No

Yes ; 76; 76%

INERPRETATION:

From the above analysis it is found that the company would conduct customer satisfaction surveys and
results shown that 76% of the surveyors opted yes and 24% of the surveyors opted no
4. Do you communicate results of your customer satisfaction surveys regularly throughout the
company?

a) Yes

b) No

Customer satisfaction surveys results

No; 19; 19%

Yes
No

Yes ; 81; 81%

INERPRETATION:

From the above analysis it is found that 81% the results are communicated regularly throughout the
company and 19% opted not.
5. Do you actively seek out customer comments and complaints?

a) Yes

b) No

Customer comments and complaints

No; 36; 36%

Yes
No

Yes ; 64; 64%

INERPRETATION:

From the above analysis it is found 64% opted yes and 36% opted no that the company actively seek out
customer comments and complaints.
6. Do you provide credit facility to your customers?

a) Yes

b) No

Credit facility

No; 23; 23%

Yes
No

Yes ; 77; 77%

INERPRETATION:

From the above analysis it is found that 77% the company is providing credit facility to their
customers and 23% opted no
7. Do you give concessions to your regular customer?

a) Yes

b) No

Concession to regular customer

No; 44; 44%

Yes
No
Yes ; 56; 56%

INERPRETATION:

From the above analysis it is found that 56% opted yes and 44% opted no that the company is giving
concessions to their regular customer
8. Do you take feedback from your customers?

a) Yes

b) No

Customer feedback

No; 36; 36%

Yes
No

Yes ; 64; 64%

INERPRETATION:

From the above analysis it is found that 64% opted yes and 36% opted no that the company would take
feedback from their customers
9. Do you customize your product or services according to the customer?

a) Yes

b) No

Customize product or services

No; 31; 31%

Yes
No

Yes ; 69; 69%

INERPRETATION:

From the above analysis it is found that 69% opted yes and 31% opted no that the company customize
their product or services according to the customer
10. Do you have a concept of “internal service”?

a) Yes.

b) No.

Internal service

No; 22; 22%

Yes
No

Yes ; 78; 78%

INERPRETATION:

From the above analysis it is found that 78% opted yes and 22% opted no that the company have a
concept of “internal service”
11. Do you communicate with your customers frequently?

a) Yes.

b) No.

Communication with customers

No; 17; 17%

Yes
No

Yes ; 83; 83%

INERPRETATION:

From the above analysis it is found that 83% opted yes and 17% opted no that the company would
communicate with their customers frequently.
12. Do you regularly review the business process to eliminate non value- adding activities and
improve customer satisfaction?

a) Yes

b) No.

Business process

No; 22; 22%

Yes
No

Yes ; 78; 78%

INERPRETATION:

From the above analysis it is found that 78% the company would regularly review the business
process to eliminate non value- adding activities and improve customer satisfaction and 22% not.
13. Is the working environment is conducive to the well-being and morale of all employees?

a) Yes

b) No.

working environment is conductive

No; 36; 36%

Yes
No

Yes ; 64; 64%

INERPRETATION:

From the above analysis it is found that the company 64% of working environment is conducive to
the well-being and morale of all employees and 36% is not.
14. How much is the role of computers in serving the customers?

a) Plays a big role

b) Not much role to play

c) No role to play.

role of computers in serving the customers

No role to play.; 16; 16%

Plays a big role
Not much role to play
Not much role to play; 22; 22% No role to play.

Plays a big role; 62; 62%

INERPRETATION:

From the above analysis it is found that 62% the computers play a big role and 22% opted not much role
to play and 16% opted that the computers doesn’t have a role to play in serving the customers.
15. Do you have centralized database for customer information?

a) Yes

b) No such database.

Centralized data base

No; 36; 36%

Yes
No

Yes ; 64; 64%

INERPRETATION:

From the above analysis it is found that the company 64% of have centralized database for customer
information and 24% should ne turned centralized.
16. Does the staff have access to the customer database?

a) Yes

b) No

Access to customer database

No; 39; 40%

Yes
No

Yes ; 59; 60%

INERPRETATION:

From the above analysis it is found that the 60% of staff have access to the customer database and
the 40% has to attain the access.
17. Is there commitment from top management to support the customer-focused service concept?

a) Yes

b) No

Customer focused service

No; 36; 36%

Yes
No

Yes ; 64; 64%

INERPRETATION:

From the above analysis it is found that there is 64% commitment from top management to support
the customer-focused service concept and 36% is about to be improved.
18. Is there any improvement in average sale per customer?

a) Yes

b) No

Average sale per customer

No; 36; 36%

Yes
No

Yes ; 64; 64%

INERPRETATION:

From the above analysis it is found that there is 64% improvement in average sale per customer and
36% is about to be improved.
19. Is there any improvement in customer response rate to the marketing activities?

a) Yes

b) No

customer response rate

No; 15; 15%

yes
No

yes ; 85; 85%

INERPRETATION:

From the above analysis it is found that there is 85% improvement in customer response rate to the
marketing activities and 15% is about to be improved.
20. Is there any improvement in customer retention and loyalty?

a) Yes

b) No

customer retention and loyalty

No; 29; 29%

Yes
No

Yes; 71; 71%

INERPRETATION:

From the above analysis it is found that the there is 71% improvement in customer retention and
loyalty and the remaining 29% is about to be improved.
 FINDINGS

1. The company gives credit facility to its customers to increase the sales volume.

2. If the company do not sell on credit the customers may switch over to other companies.

3. The company maintains frequent communication with the customers.

4. As soon as the product is ready or a new product is launched the information is provided

to the customers.

5. Communication is also necessary to maintain the interest of the customers in the

company.

6. Customers are encouraged to give suggestions and complaints so that the company can

improve its working and services.

7. If the customer’s complaints are not resolved the customers will be dissatisfied and the

company may lose its customers.

8. The company regularly reviews the business process in order to eliminate non value-

adding activities, to reduce the cost and to make the whole work efficient and effective.
Chapter-5
 SUGGESTIONS

 There should be more and more emphasis given by the company for satisfying the
customer up to a apex limit and by providing the utility of every penny of his money.

 There should be more use of information technology.

 The company should be flexible to bend its rules and procedures in the clients favour.

 The company can communicate and develop stronger customer bonding by providing
social and financial benefits.
Conclusion:
From this study it can be concluded that the customer relationship management in 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.
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.
 Questionnaire
1. Who are your customers?

a) Wholesaler

b) Retailers

c) Both

2. Are your customer’s needs clearly defined ?

a) Yes

b) No

3. Do you conduct customer satisfaction surveys?

a) Yes

b) No

4. Do you communicate results of your customer satisfaction surveys regularly throughout the
company?

a) Yes

b) No

5. Do you actively seek out customer comments and complaints?

a) Yes
b) No

6.Do you provide credit facility to your customers?

a) Yes

b) No

7. Do you give concessions to your regular customer?

a) Yes

b) No

8. Do you take feedback from your customers?

a) Yes

b) No

9. Do you customize your product or services according to the customer?

a) Yes

b) No

10. Do you have a concept of “internal service”?

a) Yes.
b) No.

11. Do you communicate with your customers frequently?

a) Yes.

b) No.

12. Do you regularly review the business process to eliminate non value- adding activities and
improve customer satisfaction?

a) Yes

b) No.

13. Is the working environment is conducive to the well-being and morale of all employees?

a) Yes

b) No.

14. How much is the role of computers in serving the customers?

a) Plays a big role

b) Not much role to play

c) No role to play.

15. Do you have centralized database for customer information?

a) Yes

b) No such database.

16. Does the staff have access to the customer database?

a) Yes

b) No

17. Is there commitment from top management to support the customer-focused service concept?

a) Yes

b) No

18. Is there any improvement in average sale per customer?

a) Yes

b) No

19. Is there any improvement in customer response rate to the marketing activities?

a) Yes

b) No

20. Is there any improvement in customer retention and loyalty?

a) Yes