Unilever CRM

MODULE ASSIGMENT
MANAGEMENT INFORMATION SYSTEM 2011

PREFACE
First, we would like to say thank you to our God who has given blessing and
mercies for us. Also to Drs. Iwan Ekawanto, MM as our lecturers who helped and
guided us so this assignment can be done finally. And for our classmates in KU 2009
that always supportted us in every situation.
This Operation Management I Module Assignment has been prepared to fulfill the
requirements of the subject. In this module assignment, we will discuss our analysis
about PT. UNILEVER INDONESIA Tbk. as our object of this assignment. We
reviewed and analyzed the Corporate Relationship Management used by Unilever
Indonesia.
At last, this paper might be imperfect and there are so many weaknesses inside it.
Hopefully that this paper can be useful to others. Critics and advices to be better are
accepeted in pleasure. Thanks for the attention.
Jakarta, January 2012
TEAM MEMBER
PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440
Gedung I Lantai 9 - Phone : 5663232 Ext. 354 -1-
MODULE ASSIGMENT
CHAPTER I
BACKGROUND
Customers Relationship Management(CRM) helps companies improve the

provitability of their interaction with customers while at the same time making the
interactions appear friendlier through individualization. Ti succeed with CRM,
companies need to match product and campaigns to prospect and customers-in other
words, to intelligently manage the customers life cycle. At the present time the business
orientation of an enterprise is not only seen from how much the goods are sold or how
much the amount of benefits obtained. Developments in the business world aware of
employers to better understand their customer needs. Customer satisfaction is very
important orientations for the sustainability of the company's product. Of satisfaction
that formed it will arise a high loyalty to the product. To be familiar with any factors
that can increase customer satisfaction, the company must have a network of good
relationships with customers.
This requirement became the forerunner to make a system to understand customer
needs, maintain customer loyalty, and provide added value to our customers in
conducting business or transactions with the company. Unilever Indonesia is engaged in
the manufacture of food, beverage and medical equipment is aware of the need to create
high customer loyalty towards its products. With the rapid competition among
competitors in the food industry, beverage and medical supplies the company with large
market level such as Unilever Indonesia are required to have the advantage of the
benefits that a competitive advantage in competing. Unilever Indonesia implement
Customer Relationship Management (CRM) to win the competition in maintaining
relationships with customers and attract new customers. Through this program
customers in particular are expected to retail customers become loyal to the company.
I.2. PURPOSE OF WRITING

The purposes of this module assignment are:

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• We understand and able to identify the location Balanced Scorecard
perspectives
• We know the direct implementation of theories in class in an organization in
this case PT Unilever Indonesia
I.3. METHODOLOGIES
We use first data and secondary data to make this module assignment. By visiting
the company we choose, also by interviewing managements in the company. For
secondary data we browse from internet. And also from text book entitled “Cost
Management” 4th edition.
I.4. SYSTEMATIZATIONS
The systematization of this module assignment as follow:
• Chapter I : This part consist of Background, Purpose of Writing, methodology,
systematizations, company profile
• Chapter II : This part consist of Literature Review of Location Strategy
• Chapter III : This part consist of implementaton of the data
• Chapter IV : This part consist of conclusion and suggestion
I.5 COMPANY PROFILE

PT Unilever Indonesia Tbk. is part of the Unilever group, one of the
world's largest companies in the field of basic goods that operates in
approximately 75 countries. Unilever is the Anglo-Dutch joint venture
headquartered in London and Rotterdam and has a workforce of
300,000 people.
Unilever is the main market of food, detergents, and cosmetics. In a world scale,
the brands of goods produced better known Unilever Unilever's own consumers rather
than name. Here are some examples of Unilever's products are widely consumed by the
public: Blue Band margarine and Flora, Cornetto and Magnum ice cream, Lipton tea
and Sariwangi, Rinso detergent powder and soap cream Omo, Lux and Lifebuoy soap,
toothpaste Pepsodent and Close Up, Pond's cosmetic creams and cosmetics Elizabeth
Arden, and many more products with famous brand.

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Status of PMA companies that have more than 60-year-old has four divisions, in
which each division is producing its products and is responsible for marketing it.
Divisions include:
• Foods Division
• Home Care Division
• Personal Care Division
• Ice Cream Division
Our discussion will focus on the implementation of the Balanced Score Card at
the division level, the Wall's Ice Cream Division that officially founded in early 1992.
PT Unilever Indonesia Tbk. has the form of a matrix organizational structure. The
structure is intended to produce goods that are well coordinated as well as directing the
development of cross-functional expertise in the organization. In the structure of such
organizations, an employee can have two bosses.
Vision and Mission

The vision of PT Unilever Indonesia Tbk. are: "Being First Choice Customers
and Consumers"
To realize its vision, PT Unilever Indonesia Tbk. has the following mission:
"Adding vitality in life, meeting the needs for nutrition, hygiene and daily personal care
with brands that help consumers feel good, look good and get more out of life " and :
• Being the best and first in class in meeting the needs and aspirations of
consumers
• Being the closest partner for customers and partners
• Eliminates without value-added activities in the entire process flow
• Provide employee job satisfaction
• Trying to achieve profitable growth so as to provide just compensation for
employees and shareholders
• Recognized for his integrity and concern for society and the environment.

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CHAPTER II
THEORY
A. CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is a widely implemented strategy for
managing a company’s interactions with customers, clients and sales prospects. It
involves using technology to organize, automate, and synchronize business processes—
principally sales activities, but also those for marketing, customer service, and technical
support.The overall goals are to find, attract, and win new clients, nurture and retain
those the company already has, entice former clients back into the fold, and reduce the
costs of marketing and client service.Customer relationship management describes a
company-wide business strategy including customer-interface departments as well as
other departments. Measuring and valuing customer relationships is critical to
implementing this strategy.
B. BENEFITS OF CRM
A CRM system may be chosen because it is thought to provide the following
advantages :
Quality and efficiency
Decrease in overall costs
Decision support
Enterprise agility
Customer Attention

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Increase profitability
C. CHALLENGES OF CRM
Successful development, implementation, use and support of customer
relationship management systems can provide a significant advantage to the user, but
often there are obstacles that obstruct the user from using the system to its full potential.
Instances of a CRM attempting to contain a large, complex group of data can become
cumbersome and difficult to understand for an ill-trained user.
Additionally, an interface that is difficult to navigate or understand can hinder the

CRM’s effectiveness, causing users to pick and choose which areas of the system to be
used, while others may be pushed aside. This fragmented implementation can cause
inherent challenges, as only certain parts are used and the system is not fully functional.
The increased use of customer relationship management software has also led to an
industry-wide shift in evaluating the role of the developer in designing and maintaining
its software. Companies are urged to consider the overall impact of a viable CRM
software suite and the potential for good or bad in its use.
1. Complexity
Tools and workflows can be complex, especially for large businesses. Previously
these tools were generally limited to simple CRM solutions which focused on
monitoring and recording interactions and communications. Software solutions then
expanded to embrace deal tracking, territories, opportunities, and the sales pipeline
itself. Next came the advent of tools for other client-interface business functions, as
described below. These tools have been, and still are, offered as on-premises software
that companies purchase and run on their own IT infrastructure.
2. Poor usability
One of the largest challenges that customer relationship management systems face
is poor usability. With a difficult interface for a user to navigate, implementation can be
fragmented or not entirely complete.

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The importance of usability in a system has developed over time. Customers are
likely not as patient to work through malfunctions or gaps in user safety, and there is an
expectation that the usability of systems should be somewhat intuitive: “it helps make
the machine an extension of the way I think — not how it wants me to think.”
An intuitive design can prove most effective in developing the content and layout
of a customer relationship management system. Two 2008 case studies show that the
layout of a system provides a strong correlation to the ease of use for a system and that
it proved more beneficial for the design to focus on presenting information in a way that
reflected the most important goals and tasks of the user, rather than the structure of the
organization. This “ease of service” is paramount for developing a system that is usable.
In many cases, the growth of capabilities and complexities of systems has
hampered the usability of a customer relationship management system. An overly
complex computer system can result in an equally complex and non-friendly user
interface, thus not allowing the system to work as fully intended. This bloated software
can appear sluggish and/or overwhelming to the user, keeping the system from full use
and potential. A series of 1998 research indicates that each item added to an information
display can significantly affect the overall experience of the user.
3. Business reputation
Building and maintaining a strong business reputation has become increasingly
challenging. The outcome of internal fragmentation that is observed and commented
upon by customers is now visible to the rest of the world in the era of the social
customer; in the past, only employees or partners were aware of it. Addressing the
fragmentation requires a shift in philosophy and mindset in an organization so that
everyone considers the impact to the customer of policy, decisions and actions. Human
response at all levels of the organization can affect the customer experience for good or
ill. Even one unhappy customer can deliver a body blow to a business.
Some developments and shifts have made companies more conscious of the life-
cycle of a customer relationship management system. Companies now consider the
possibility of brand loyalty and persistence of its users to purchase updates, upgrades
and future editions of software.

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Additionally, CRM systems face the challenge of producing viable financial
profits, with a 2002 study suggesting that less than half of CRM projects are expected to
provide a significant return on investment. Poor usability and low usage rates lead many
companies to indicate that it was difficult to justify investment in the software without
the potential for more tangible gains.
D. TYPES/VARIATIONS
1. Marketing
CRM systems for marketing help the enterprise identify and target potential
clients and generate leads for the sales team. A key marketing capability is tracking and
measuring multichannel campaigns, including email, search, social media, telephone
and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue.
Alternatively, Prospect Relationship Management (PRM) solutions offer to track
customer behaviour and nurture them from first contact to sale, often cutting out the
active sales process altogether.
In a web-focused marketing CRM solution, organizations create and track specific
web activities that help develop the client relationship. These activities may include
such activities as free downloads, online video content, and online web presentations.
2. Customer service and support

CRM software provides a business with the ability to create, assign and manage
requests made by customers. An example would be Call Center software which helps to
direct a customer to the agent who can best help them with their current problem.
Recognizing that this type of service is an important factor in attracting and retaining
customers, organizations are increasingly turning to technology to help them improve
their clients’ experience while aiming to increase efficiency and minimize costs. CRM
software can also be used to identify and reward loyal customers which in turn will help
customer retention. Even so, a 2009 study revealed that only 39% of corporate
executives believe their employees have the right tools and authority to solve client
problems.
3. Social media

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Social media sites like Twitter, LinkedIn and Facebook are amplifying the voice
of people in the marketplace and are having profound and far-reaching effects on the
ways in which people buy. Customers can now research companies online and then ask
for recommendations through social media channels, making their buying decision
without contacting the company.
People also use social media to share opinions and experiences on companies,
products and services. As social media is not as widely moderated or censored as
mainstream media, individuals can say anything they want about a company or brand,
positive or negative.
Increasingly, companies are looking to gain access to these conversations and take
part in the dialogue. More than a few systems are now integrating to social networking
sites. Social media promoters cite a number of business advantages, such as using
online communities as a source of high-quality leads and a vehicle for crowd sourcing
solutions to client-support problems. Companies can also leverage client stated habits
and preferences to "Hypertargeting" their sales and marketing communications.
Some analysts take the view that business-to-business marketers should proceed
cautiously when weaving social media into their business processes. These observers
recommend careful market research to determine if and where the phenomenon can
provide measurable benefits for client interactions, sales and support. It is stated that
people feel their interactions are peer-to-peer between them and their contacts, and
resent company involvement, sometimes responding with negatives about that
company.
E. STRATEGY
For larger-scale enterprises, a complete and detailed plan is required to obtain the
funding, resources, and company-wide support that can make the initiative of choosing
and implementing a system successfully. Benefits must be defined, risks assessed, and
cost quantified in three general areas:
Processes : Though these systems have many technological components,
business processes lie at its core. It can be seen as a more client-centric way of
doing business, enabled by technology that consolidates and intelligently
distributes pertinent information about clients, sales, marketing effectiveness,

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responsiveness, and market trends. Therefore, a company must analyze its
business workflows and processes before choosing a technology platform;
some will likely need re-engineering to better serve the overall goal of winning
and satisfying clients. Moreover, planners need to determine the types of client
information that are most relevant, and how best to employ them.
People : For an initiative to be effective, an organization must convince its
staff that the new technology and workflows will benefit employees as well as
clients. Senior executives need to be strong and visible advocates who can
clearly state and support the case for change. Collaboration, teamwork, and
two-way communication should be encouraged across hierarchical boundaries,
especially with respect to process improvement.
Technology : In evaluating technology, key factors include alignment with the
company’s business process strategy and goals, including the ability to deliver
the right data to the right employees and sufficient ease of adoption and use.
Platform selection is best undertaken by a carefully chosen group of executives
who understand the business processes to be automated as well as the software
issues. Depending upon the size of the company and the breadth of data,
choosing an application can take anywhere from a few weeks to a year or
more.
CHAPTER III
IMPLEMENTATION OF THEORY
IMPLEMENTING CUSTOMER RELATIONSHIP MANAGEMENT IN PT.

UNILEVER TBK
Unilever is committed to providing branded products and services which consistently
offer value in terms of price and quality and are safe for the purpose of use. products
and services will be labeled, advertised and communicated accurately and properly.
Three phase customer life cycle in CRM :

1. Acquired the new customer

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Unilever can be get the new customer by :
New innovations to_the product or service facilities that already_exist, thus_attrac
ting more customers because there are alternative options. Unilever R&D has an
important role to play in the design and use of our products because consumers
are increasingly looking for products that mean they can 'do their bit' for the
environment while at the same time helping them look good, feel good and get
more out of life.
Unilever R&D already has a long history of developing products that meet these
exacting criteria and, looking to the future, all our products will incorporate
social, economic and environmental metrics in their innovation plans.
Some recent examples include:

 An upside-down roll-on deodorant that uses 18% less plastic in each pack.
 PureIt, a battery operated home water purification device which gives
households in India access to clean, pure drinking water at low cost.
 Small and Mighty laundry liquids which, because of their size and
concentration, reduce CO2, water usage and transportation costs.
In addition Unilever give comfort to customers in obtaining product

information they needed. Unilever product information is conducted advertising
in television, in_newspapers or magazines._Besides Unilever also try_to provide
Unilever products in_a_timely_manner and distribute and spread_out throughout
Indonesia, from the time the product left the factory through warehouse until the
end of this product delivered to customers in perfect condition as expected.
2. Increasing customer value
Unilever always give priority the customer in which the values ofunilever always
provide the best service and products to meet theneeds of the community. In
addition unilever always maintain the quality of its product are always good and
satisfying customers.
3. Maintain the existing customer
Companies can retain the existing customers by:

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a. Provide time to listen_to_the_needs of_customers, includingcustomer dissat
isfaction towards our products_or services, whichwe use_to become_better l
onger. Unilever is one company thatreally listens and meet customer
needs this can be viewed from creation of products with new innovations to
meet customer needs today. Examples of incidence product
innovation "Molto Sekali Bilas" or "Sunlight Sekali Usap". It can meet the
needs of
Indonesian housewife who_need products that_can assist them in_doing_ho
uesework. Besides Unilever also open to all kinds
complaints about customer dissatisfaction. It can be seen by the customer
care or call Unilever consumer
voice in_which the_consumer_can critical, ask, and give advice on Unilever
product. Dedication of customer care services that do this can be proved
from Unilever Unilever Indonesia tbk's award winning "Call CanterService
Excellence Service" organized by the Frontier Centre for Customer
Satisfaction and loyalty.
b. Sending brochures or souvenirs at certain events to loyal customers. It is

also often done by Unilever to retain the loyal customers, Unilever often
open stand on specific events and provide sufficient promotion of its
products. For example the promotion of the new flavor of ice cream
Magnum, promotion of a product at a discounted price is quite appealing or
the promotion of the product of extra size with a fixed price. Apart from that
Unilever also often provide surprise or dorprizes like a surprise to our
customers lifebouy, sunsilk diamond necklace raffle prizes, etc.
From sourcing raw materials to delivering the end product, the technologically
advanced supply chain underpins the growth of Unilever, providing service excellence
at competitive costs. Unilever has proactively developed new capabilities in customer
relationship management and supply chain for partnering the development. They now
have a business system in place that delivers excellence in customer service, while
drivinggrowth for the company and the customers. In-store merchandising is a key

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enabler for their brands to stand out prominently and attract the attention of consumers.
Customised activation to drive trial and preference for their brands is another key thrust.
They keep interacting with the customers thus providing them experience in a number
of innovative ways.
Innovative Services for Customer Attraction and Retention :

Give a reward for the loyal consumer and customer by do a surprise like door to
door program (give a surprise like money or merchendise for a customer who has
lifebouy produt in their home)
Rumah cantik citra provide a services for the female who want to care herself by
bring the product and rumah cantik citra will give a free charge for service like
massage, lulur, etc
In-store sampling for their range of home care and personal care product like
molto, axe parfume, and another product that has a fragrance
Provide a good product for middle down people by provide a sachet product.
Self-service Stores
As the country develops, the organised trade will develop rapidly, as experienced
inother countries. Self-service stores and supermarkets, though small as a channel
today,are fast emerging in metros and large towns. The self-service format is a great
enabler for such increased interaction with consumers and they are fully leveraging this
opportunity to drive trial and preference for their brands.
Pioneering New Ways for Customer Relationship

All these initiatives build convergence of product availability, brand
communication andbrand experience in the current channels. But these current channels
are somewhatconstrained by the existing formats and business models. They therefore
need to gofurther in creating touch points for the brands relevant to the scale and nature
of theIndian consumer opportunity. They are thus creating a whole set of new channels
thatare designed on the principles of holistic contact with consumers. These are across
allconsumer segments in both urban and rural India.
Understanding customer needs

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The main purpose of this area is to understand customer needs and work together
tosolve joint logistical challenges such as on shelf availability. Roles include order
management, working at the interface between warehousing and transportation,
andensuring the right products arrive in the right place at the right time.
Realdialog
In an effort to improve the consumer experience and gather better customer
information, Unilever has started using Astute Solutions' RealDialog tools in its call
centers.
RealDialog uses a linguistics engine to analyze customers' questions in their own
words and then provide contact center agents with easy-to-read responses. By feeding
the answers to agents, RealDialog allows companies to control their messaging. Another
major strength of the system, according to Astute, is that it simplifies the agents' jobs,
allowing them to provide answers more quickly and focus on relationship building.
This implementation meets two critical needs. It enables for company to
understand the consumers' immediate needs and enhance their experience at the time
when it matters most. It also gives us powerful insights — through detailed, actionable
consumer data — to further our business objective of delivering products that meet the
changing tastes, lifestyles and expectations of our consumers.”
RealDialog also helps Unilever and other customers, including Circuit City,
gather actionable consumer insights. The system logs their queries and comments
verbatim, so that managers and executives can gauge consumers' feelings about their
products. When Unilever adds RealDialog's capabilities to its branded Web sites in the
phase of the partnership, brand managers will be able to react to consumers' comments
online in real time.
Unilever was previously using a proprietary database of all of its products in its
call centers. The company's contact centers in the US and Canada deal with more than
90 brands, spanning 14 categories of consumer goods — which made it difficult for
agents to search for proper responses.
With RealDialog, consumers won't have to hunt for answers and can feel
confident in their accuracy. It will increase the value of the customer experience and

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ultimately generate revenue because customer be happy with the service they're getting
and the product information they're finding.
Barriers to implementation of CRM in the PT. Unilever Limited
In operating the company and achieve its objectives, the only thing that becomes
barriers to the company Unilever Indonesia Tbk is a competition with other companies
moving in the same field. And to facing these barriers, efforts are being made to future
Unilever Indonesia, which will hold the MT program (Management Training) in the
search for human resources potential . The MT undergoing a job as assistant manager
for two years. An assistant manager who is placed in the marketing department, for
example, should be able to learn a lot about marketing. He must jump into the
traditional markets to the corners of the area to know and understand the needs of
consumers. On the other hand, the company monitors its development as an assistant
manager to evaluate whether this is worth being promoted as a manager or not.

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CHAPTER IV
CONCLUSION
1. CRM is defined as a single unit sales, marketing and service strategies that
prevent the occurrence of work activities that are not coordinated between the
well and it depends on the action - the company that coordinated action. CRM
concentrates on what is judged by customers, not on what the company wants to
sell. Customers do not want to be treated equally. But they like to be treated
individually.
2. CRM development undertaken by Unilever Indonesia by using Astute Solutions

RealDialog, ie a tool in the call center. RealDialog uses linguistic analysis engine
customers in each word and then provides contact center agents so easily read the
response. RealDialog allows them to control the message.
3. CRM Implementation is expected to increase customer loyalty and also increase

customer reach. High level of satisfaction to be the main target application of
CRM. The customer are expected to deliver a response to the company and their
valuation. With the CRM is expected to be able to better understand the company
and its customers to know the needs of its customers.

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LITERATURE
O’Brien, James A., 2007. “Customer Relationship Management”, Management

Information Systems: Managing Information Technology in the E-Business
Enterprise (5th ed.) . McGraw - Hill Higher Education
http://www.unilever.co.id/


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MODULE ASSIGMENT

MANAGEMENT INFORMATION SYSTEM 2011

Jakarta, January 2012

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

Customers Relationship Management(CRM) helps companies improve the

I.2. PURPOSE OF WRITING

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

I.5 COMPANY PROFILE

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

Vision and Mission

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

A. CUSTOMER RELATIONSHIP MANAGEMENT

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

Additionally, an interface that is difficult to navigate or understand can hinder the

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

2. Customer service and support

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

IMPLEMENTING CUSTOMER RELATIONSHIP MANAGEMENT IN PT.

Three phase customer life cycle in CRM :

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

Some recent examples include:

In addition Unilever give comfort to customers in obtaining product

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

b. Sending brochures or souvenirs at certain events to loyal customers. It is

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

Innovative Services for Customer Attraction and Retention :

Pioneering New Ways for Customer Relationship

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

2. CRM development undertaken by Unilever Indonesia by using Astute Solutions

3. CRM Implementation is expected to increase customer loyalty and also increase

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

O’Brien, James A., 2007. “Customer Relationship Management”, Management

PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI

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