A

Project report
On
“Customer relationship management”
Submitted to
Punjab technical university, Jalandhar

In the partial fulfillment of the requirements for the degree of

Master of business administration (MBA)
Submitted by
Rahul Kumar
(Univ. Roll no. 1707856)

Gulzar group of institutes of khanna

 ACKNOWLEDGEMNT
I whole heartedly take this opportunity to express my indebtedness and deep
sense of gratitude to all the individuals for rendering valuable assistance to time
in making project a success.

The success of any project is the result of hard work and endeavor of not one
but many people and the this project is no different. Their input have played a
vital role in success of this project and formal piece of acknowledgment may
not be sufficient to express the felling of gratitude to words people who have
helped me in successfully completion of my project.

I would like to wish my sincere thanks to my project guide mr. Gurinder singh
for her stimulating guidance, continuous encouragement and supervisor in
making of this project.

I would also like to thanks all respondents who spared their precious time for
providing me with their valuable inputs for this project.

I convey my thanks to my beloved parents and my faculty who helped me

directly or indirectly in bringing this project successfully.

Rahul Kumar

(1707856)
 CERTIFICATE
This is to certify that

The project report in entitled

An analytical study of “customer relationship management”

Submitted in the partial fulfillment of the requirement for the degree of

Master of business administration (MBA) of Punjab technical

university, Jalandhar

By
RAHUL KUMAR
(Univ. roll no. 1707856)
Has been prepared under my supervision and guidance and no project of it has
been submitted for the award of any other and the work has not been published
in any Journal, magazine or book

Mr. Gurinder Singh

Lecturer
 INDUSTRY PROFILE

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

The industry consists of two segments, namely decorative segment & Industrial
segment. In the domestic market, Decorative segment accounts for 70% of the
total demand for paints whereas industrial segment accounts for remaining 30%.
Growth of the paint industry has been consistent with the growth of Indian
GDP. Paint industry growing at a rate of 1.5 to 2 times of Indian GDP. The top
5 companies make up more than 80% sales of the organized market.

TOP 5 companies in India market are

1) ASIAN Paints Ltd.

2) Kansai NEROLAC Paints Ltd.

3) BERGRE Paints Ltd.

4) AKZONOBLE India Ltd.

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

1) Technology 2) Research & Development

4) Innovations 3) Quality

Kansai NEROLAC Paint Ltd. is number one in automotive sector having strong
presence in almost all major automotive industries like MARUTI Suzuki,
Toyota, Tata Motors, Mahindra, Honda, Bajaj, Volvo etc.

They have very strong distribution network in domestic market for decorative
segment also KNPL is leader in powder coating. KNPL having 5 manufacturing
facilities in 4 regions to cater all India operation with whereas

The head office & R & D CENTRE is based at Mumbai. KNPL is the 1st
Indian paint com

Company Overview
Kansai NEROLAC Paints has 6 paint manufacturing plants and about 6–7
contract manufacturers.
The NEROLAC owned plants are at

1. JAINPUR (Uttar Pradesh)

2. BAWAL (Haryana)

3. LOTE, CHIPLUN (Maharashtra)

4. HOSUR (Tamil Nadu)

5. SAYAKHA (Gujarat)

6. GOINDWAL (Punjab)

The Mumbai-based company is the leader in the industrial paints segment with
a market share of over 40%. It is the third-largest player in the decorative paints
segment with a modest market share of 13%. Nearly 75% of the Indian paints
industry consists of the decorative segment.

Products and Services

Technologically innovative products are the company's hallmark. Kansai
NEROLAC Paint offers differentiated products with a focus on being eco-
friendly and healthy. Kansai NEROLAC Paint’s key products and brands
include the following:

Decorative paints Interior wall paints, Exterior wall paints, Wood surface
paints and Metals surface paints.

Automotive Coatings: Pre-Treatment Chemicals, Intermediate Coats,

Topcoats, Clear Coats, Touch up Paints, Auto Refinishing Products, Heat
Resistant Paints, under body Paints & PVC Sealants Transit Protection Films.

Performance Coatings: Performance Coating are available for wide range of

products. For household appliances and metal fittings in factories, there is a
comprehensive range of general industrial coating systems like .T P. chemicals,
Primers and lacquers, Coil Coat, Heat Resistant Paints & Metal Decoration
Coatings. Powder Coating is now increasing in popularity because of its high
quality, y resistance to corrosion, the apparent ease of application and the
environmental friendliness of the technology.
 Awards and Achievements
1. Golden Peacock Environment Management Award, 2005

2. Short listed for the Best Managed Company Award from Business Today &
A.T. Kearney 2005.

3. Best Vendor Award from customers like Toyota KIRLOSKAR Motors Ltd.
(TKML) for Cost and from MARUTI UDYOG Ltd. (MUL) on overall
commendation.

4. Awards for Marketing Initiatives like Cannel 2007 Bronze for Press Ad.

5. Reader's Digest Trusted Brands Gold Awards, 2008.

6. Product of the Year Award 2010 for NEROLAC Excel April 2010.

7. Product of the Year Award 2011 for NEROLAC Excel Total with Heat-
Guard Technology April 2011.

8. Sustainability Award for outstanding contribution by Mahindra &

Mahindra-October 2011.

9. Best Vendor Performance Award in Paint Supplier's Category by Honda

Motors cycles & scooters at their annual conference 2012.

10. ASAPP Media Information Group – Construction World Magazine Ranked

Kansai NEROLAC Paints First.

Need of the study

In today’s intensely competitive, rapidly changing & highly complex business
environment characterized by diminishing customer loyalty, the need to be
market focused & customer centric is more critical than any other time in past.
Firms use technology as a key tool to enhance the information flow within their
business units, helping their employees better understand the ever changing and
increasing need and wants of their customers.

It is certain that the internet will continue to change the ways customers and
organizations interact with one another in terms of speed and ease. This fact
requires that the integration of internet technology into CRM activities occur at
all levels throughout the organization. Thus, it would be wrong to say that
keeping its customer satisfied is in the best interests of the organizations.

The purpose of this study is to bring insight and deeper understanding into the
objectives, strategies and the expected benefits of CRM initiatives by the
organization.
 "Customer Relationship Management"
Introduction:-
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.
CRM (customer relationship management):-
CRM (customer relationship management) is an information industry term for
methodologies, software, and usually Internet capabilities that help an enterprise
manage customer relationships in an organized way. For example, an enterprise
might build a database about its customers that described relationships in
sufficient detail so that management, sales people,

People providing service, and perhaps the customer directly could access
information, match customer needs with product plans and offerings, remind
customers of service requirements, know what other products a customer had
purchased, and so forth.

According to one industry view, CRM consists of:

• Helping an enterprise to enable its marketing departments to identify and

target their best customers, manage marketing campaigns and generate quality
leads for the sales team.

• Assisting the organization to improve telesales, account, and sales

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

• Allowing the formation of individualized relationships with customers, with

the aim of improving customer satisfaction and maximizing profits; identifying
the most profitable customers and providing them the highest level of service.

• Providing employees with the information and processes necessary to know

their customers understand and identify customer needs and effectively build
relationships between the company, its customer base, and distribution partners.

Aims of CRM:-

The CRM is a new technique in marketing where the marketer tries to develop
long term relationship with the customers to develop them as life time
customers. CRM aims to make the customer climb up the ladder of loyalty. The
company first tries to determine .who are likely prospects i.e. the people who
have a strong potential interest in the product and ability to pay for it.

The company hopes to convert many of its qualified prospect into first time
customers and then to convert those first time customers into repeat customers.
Then the company tries to convert these repeat customers into clients – they are
those people who buy only from the company in the relevant product categories.
The next challenge for the company is to convert these clients into advocates.
Advocates are those clients who praise the company and encourage others to
buy from it.

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

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

In CRM the company tries to identify that small percentage (20%) of key
account holders whose contribution to the company revenues is high (80%). So
from this point of view,

CRM is also known as KEY ACCOUNT MANAGEMENT.

Why – Customer Relationship Management:-

Ø A satisfied customer in 10 years will bring 100 more customers to the
company.

Ø It costs 7 times more to attract a new customer than to serve an old one.

Ø The chances of selling to an existing customer are 1 in 2; the chances of

selling to a new customer are 1 in 16.

Benefits of Customer Relationship Management:-

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

• Quality and efficiency

• Decrease in overall costs

Decision support
• Enterprise ability

• Customer Attentions

• Increase profitability

• Improved planning

• Improved product development

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

CRM software can also be used to identify and reward loyal customers which In
turn will help customer retention. Even so, a 2017 study revealed that only 39%
of corporate executives believe their employees have the right tools and
authority to solve client problems.

Increase in customer retention

Customer satisfaction ratings improved

Service calls deflected from call center to online forum

Reduction in overall customer service costs

Marketing:
CRM systems for marketing help the enterprise identify and target potential
clients and generate leads for the sales team. A key marketing capability is
tracking and measuring multichannel campaigns, including email, search, social
media, telephone and direct mail.

Metrics monitored include clicks, responses, leads, deals, and revenue.

Alternatively, Prospect Relationship Management (PRM) solutions offer to
track customer behavior and nurture them from first contact to sale, often
cutting out the active sales process altogether.

In a web-focused marketing CRM solution, organizations create and track

specific web activities that help develop the client relationship. These activities
may include such activities as free downloads, online video content, and online
web presentations

Product- or company-related postings

Positive product comments, reviews
Visitors following link from social channel to online store’s URL
Visitors referred to website from online friend

Sales:-
Sales Force Automation (SFA): involves using software to streamline all
phases of the sales process, minimizing the time that sales representatives need
to spend on each phase. This allows a business to use fewer sales
representatives to manage their clients.

At the core of SFA is a contact management system for tracking and recording
every stage in the sales process for each prospective client, from initial contact
to final disposition. Many SFA applications also include insights into
opportunities, territories, sales forecasts and workflow automation.

More sales lead with expressed interest or need

Increase in referrals

Reduce cost per lead acquired

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

Overall increase in online sales and/or online customers

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

channel

Increased purchasing from social channel visitors vs. regular online visitors
Product development:-
New ideas for future products or services generated via contests or “crowd
sourcing,” in which online groups brainstorm and then vote on best ideas

Horizontal vs. Vertical:-

Major CRM vendors offer horizontal CRM solutions. In order to tailor a
horizontal CRM solution, companies may use industry templates to overlay
some generic best practices by industry on top of the horizontal CRM solution.
Horizontal CRM vendors may also rely on value added reseller networks of
systems integrators to build vertical solutions and sell them as 3rd party add-ons
or to come in and customize the solution to fit into a particular scenario.

Vertical CRM vendors focus on a particular industry. As a general rule of

thumb in CRM, it is ten times more costly to build a vertical solution from a
horizontal software program than it is to find a particular vertical solution that is
already tailored to your business model and industry.

How to introduce CRM in the company:-

Four key steps for putting one to one marketing program to work
–
Step 1: Identify your customers:

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

Step 2: Differentiating your customers

Customers are different in two principal ways; they represent different levels of
value and have different needs. Once the company identifies its customers
differentiating them will help the company to focus its efforts to gain the most
advantage with the most valuable customers.
Step 3: Interacting with the customer

Interaction is also a crucial component of a successful CRM initiative. It is

important to remember that interaction just not occur through marketing and
sales channels, customer interact in many different ways with many different
areas of the organization so to foster relationship all the areas of the
organization must be accessible to the customer.

Step 4: Customize your enterprise’s behavior

Ultimately to lock a customer into a relationship a company must adapt some

aspect of its behavior to meet customer’s individually expressed needs this
might mean mass customizing a manufactured product or it might involve
tailoring some aspect of the service surrounding the product.

Challenges:-
Successful development, implementation, use and support of customer
relationship management systems can provide a significant advantage to the
user, but often there are obstacles that obstruct the user from using the system to
its full potential. Instances of a

CRM attempting to contain a large, complex group of data can become

cumbersome and difficult to understand for ill-trained users. The lack of senior
management sponsorship can also hinder the success of a new CRM system.
Stakeholders must be identified early in the process and a full commitment is
needed from all executives before beginning the conversion. But the challenges
faced by the company will last longer for the convenience of their customers.
Additionally, an interface that is difficult to navigate or understand can hinder
the 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.

Significance of the study:-

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

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

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

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

Ø To study on customer relationship management would enable the researcher

to know about the CRM practices adopted in the Paint industry.

Review of the existing literature:-

With the available literature we can summarize CRM in the words of various
authors as follows- Customer Relationship Management marketing can be
defined as “an integrated effort to identify, maintain and build up a network
with the individual customers and to continuously strengthen the network for
the mutual benefit of both parties, through interactive, individualized and value
added contracts over a long period of time.

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

Objectives of Customer Relationship Management:-

1. To study the current practices of CRM.

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

3. To study the factors affecting the CRM practices.

4. To study the role of information technology in CRM.

Research Methodology
A research design is simply a plan for study in collecting and analyzing the data.
It helps the researcher to conduct the study in an economical method and
relevant to the problem.

Research methodology is a systematic way to solve a research problem. The

methodology should combine economy with efficiency. Research design

The study conducted here is exploratory cum descriptive.

Scope of the study

The scope of the study is confined to Company.

Collection of the data

There are two types of data.

Primary data – primary data is that data which is collected for the first time.
These data are basically observed and collected by the researcher for the first
time. I have used primary data for my project work.

Secondary data – secondary data are those data which are primarily collected
by the other person for his own purpose and now we use these for our purpose
secondly.

Questionnaire
1. Who are your customers?

a) Dealer

b) Industry

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. How do you get customer comments and complaints?

a) Face to face.

b) Toll free numbers, formal surveys.

c) Others means

7. How do you get information about the customers?

a) Face to face interviews

b) Surveys.

c) Any other means.

8. Do you analyze channel effectiveness? In which channel is most effective

in serving the customer?

a) Yes

b) No

9. Do you provide credit facility to your customers?

a) Yes

b) No
10. Do you give concessions to your regular customer?

a) Yes

b) No

11. Do you take feedback from your customers?

a) Yes

b) No

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

a) Yes

b) No

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

a) Yes.

b) No.

14. Do you communicate with your customers frequently?

a) Yes.

b) No.

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

a) Yes

b) No.

16. Is the working environment is conducive to the well-being and morale of

all employees?

a) Yes

b) No.

17. 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.

18. Do you have centralized database for customer information?

a) Yes

b) No such database.

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

a) Yes

b) No

20. Is there commitment from top management to support the customer-focused

service concept?

a) Yes

b) No

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

a) Yes

b) No

22. Is there any improvement in customer response rate to the marketing

activities?

a) Yes

b) No

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

a) Yes

b) No.
Findings:-
The customers of COMPANY are industries & Distributors throughout India.

The needs of the customers are clearly defined and the products are customized
according to the needs of the customers. Customer’s comments and complaints
are welcomed and resolved quickly and positively. Comments and complaints
are taken through face to face interviews.

The company conducts customer satisfaction surveys.

The company provides credit facility to its customers up to 90 days. If the
customers pay within 21 days they are given 5% cash discount for distributors.

Sales persons of the company maintain frequent and informative

communication with the customers.

Business process is regularly reviewed to eliminate non value-adding activities.

The average sale per customer has increased by 10% and customer’s response to
the marketing activities is also improving. Customer retention is also improving.

The factors which have an impact on the CRM are – organization culture,
support from top management, interpersonal skill of the sales personals and
working environment of the company.

Analysis:-
The customers of the COMPANY are the direct industries & wholesalers. It is
because for the decorative segment the number of retailers is very large as
compared to the wholesalers. So it is not possible for the company to approach
to the retailers. Therefore the company sells to the wholesalers and then
wholesalers sell to the retailers.

Customers are encouraged to give suggestions and complaints so that the

company can improve its working and services. If the customer’s complaints are
not resolved the customers will be dissatisfied and the company may lose its
customers.

Different customers have different requirements. So the company customizes its

product accordingly to satisfy the customers. It also gives more choice to the
customers.
To get the information about the customers and to measure the satisfaction the
company conducts surveys through Business development sales persons.

The company gives credit facility to its customers to increase the sales volume
.If the company do not sell on credit the customers may switch over to other
companies.

The company maintains frequent communication with the customers. As soon

as the product is ready or a new product is launched the information is provided
to the customers. Communication is also necessary to maintain the interest of
the customers in the company.

The company gives concession to its regular customers so as to retain most

valuable and profitable customers. The company regularly reviews the business
process in order to eliminate non value-adding activities, to reduce the cost and
to make the whole work efficient and effective.

Limitations of Customer Relationship Management:-

1. Time constraint is unavoidable limitation of my study.

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

3. Inadequate disclosure of information is also the problem.

Recommendations:-
• There should be more and more emphasis given by the company for satisfying
the customer up to an apex limit and by providing the utility of every penny of
his money.

• There should be more use of information technology.

• The company 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. Average
sale per customer has increased 25% over the last two years. Customer response
rate towards marketing activities is also improving. There are various factors
affecting the customer relationship management like working environment of
the company, support from top management and coordination among the
departments of the company. Information technology is not used as much as it
should be.

The company is using traditional tools of CRM like quantitative research,

personal interviews. The company should modern tools like data mining,
contact center, e-CRM and web based survey tools.

References:-
• http://www.google.com

• Freeman, H (2004), Why Services are so Important, online available;

www.serviceindustriestren.org.

• Ram pal M K & Gupta S L, “Service Marketing” 4th edition.