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EXECUTIVE SUMMARY:Customer Relationship Management: What does this mean? What’s an ‘unfriendly’ word like management doing alongside such ‘human’ concepts as customer and relationship? What is a customer? A person who buys… What is a relationship? The state of being connected… What is management? The science of controlling… So CRM should mean controlling the relationship with a customer. CRM is the hot topic today in corporate world each and every company should manage the relations with their customers very carefully. Important point is to get connected with customers in any way; it can be calls, emails, meetings, these are known as “TOUCHPOINTS”. And the new paradigm will be, 'Now that we know who you are, how do we get access to you wherever you are?' One thing is certain the customer will be at the center of the enterprise. I have studied customer management systems used by CLARIANT these systems are ? CUSTOMER DEVELOPMENT FILES.
? KEY ACCOUNTS MANAGEMENT SYSTEM (KAMS).etc
“CRM is all about how you attract, develop and retain customers.” Always treat your customers as a king as you are dependent on customers, they are not dependent on you. Customer relationship management is only thing which helps the company to know their customers better. Now, we will see some aspects of CRM and how it is implemented and used practically.
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By tapping these tools and its growing needs, the topic I chose was “To study customer relationship management with the help of Key Accounts Management System (KAMS)” which was carried out for Clariant Chemicals (India) Ltd. This project includes both observation and questionnaire method. Observation required the sales to each top hundred customers of Clariant and questionnaire method was to understand customer relationship management of the company. Questionnaire was e-mailed to top 100 customers and then they had to reply for the questionnaire which was given to them within the time period given to them. Questionnaire was circulated through mails because of the geographic restrictions as the customers of Clariant are scattered all over India.
INTRODUCTION:2
“Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for company and customers” -- Parvatiyar and Sheth
CRM is a hot topic today in corporate world or say Owing to the increasing use of CRM in many companies to manage their prospect buyers (customers); it makes sense to study the influence of the use of Customer Relationship Management in Practice. In short, to understand the customer relations and also the factors which have lead to increase the use of Customer Relationship Management.
Much of the money spent is on Customer Relationship Management by each company today to increase the sale of their product, to know what the reason behind spending money is???
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The emergence of service as well as market economy, global orientation of businesses, and aging population of the economically developed economies have been identified as the growth drivers for CRM. Increasing customer expectations and affordable technology advances, as primary drivers of CRM adoption.
LITERATURE REVIEW:-
What should our aim be with customers?
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First, follow the Golden Rule of Marketing: “Market to your customers as you would want them to market to you”. Second, recognize that your success depends on your ability to make your customers successful. “Aim to make your customers better off. Know their needs and exceed their expectations.” Jack Welch, retired CEO of GE, put it this way: “The best way to hold your customers is to constantly figure out how to give them more for less.” And remember, customers are increasingly buying on value, not on relationship alone.
We now live in a customer economy where the customer is king. This is a result of production overcapacity. It is customers, not goods, which are in short supply.
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Companies must learn how to move from a product-making focus to a customerowning focus. Companies must view the customer as a financial asset that needs to be managed and maximized like any other asset. Tom Peters sees customers as an “appreciating asset.” They are the company’s most important asset, and yet their value is not even found in the company’s books. Recognizing the value of this asset will hopefully lead companies to redesign their total marketing system toward capturing and customer lifetime value through their products/services portfolio and branding strategies. Over 30 years ago, Peter Drucker emphasized the importance of customer thinking to the success of a firm. He said “Purpose of a Company is to create a customer. Therefore, the business has two— and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” L. L. Bean, the outdoor mail order firm, wholeheartedly practices a customeroriented credo: “A customer is the most important visitor on our premises. He is not dependent on us—we are dependent on him. He is not an outsider in our business—he is a part of it. We are not doing him a favor by serving him . . . he is doing us a favor by giving us the opportunity to do so.”
Imperatives of CRM 1. Acquiring Right Customer : 6
According to Customer Relationship Management is truly a part of any company, and here in Clariant the company has adopted this system to take care of there important customers. The company has acquired right customers who are the top 100 customers of our company. There purchase quantity is very high and accomplish to around 70% of companies sales. Market share of these customers is also good in comparison of the others. These are the loyal customers of our company.
2. Crafting Right Value proposition : This means that company should know what are the customer needs today and what will be the needs tomorrow. Clariant at its best try to know that what does a customer wants and are they able to fulfill that. This is done through many things through survey forms, feedback forms, asking the customers through distributors about their product, contacting the direct customers and knowing every thing, company also analyzes what is the competitor’s product and testing of competitors is done in lab and then conclusions are made accordingly. This is the best part of the company that they know how is the competitor going to enter its product in market.
3.
Instituting the best processes : Research and development department does the research that how should the
production processes go on in a better way. The research should be based on best way to deliver customers, to invest in right technologies. Because of this research, company has shifted their plant from Thane where it was able to produce 1 ton for example and they shifted the plant to Roha near Panvel, which has the production capacity of around 10 times better. This is done in the sense to avoid stock outs of some products, which are in high demand. 4. Learning to retain customers : -
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Mixture of all of above is retaining customers. The major turn offs for our customers would be poor supply chain, products not according to specified quality, stock outs, no proper delivery time and many more things. These all should be overcomed that would help the company to retain the customers and maintain good relations with them. Our company takes into account a different policy or strategy that is MARKET CAMPAIGN. Following strategy are used to gain customer: Win Back strategy should be used: Regardless of nature of the category or how hard companies may try, some customers inevitably become inactive or drop out. The challenge is to reactive dissatisfied customers through win back strategies. It’s anytime easy to attract old customers than to find new ones. This is because the company knows the history of the customers and what exactly he wants can be known very much easily. Key is to analyze the causes of customer defection through lost customer’s survey and win back only those who have strong profit.
Strategy used by CLARIANT to Retain Customers is “Market Campaigns”
ifferent companies use many different strategies. But Clariant use Market campaigns, the only reason to use this strategy is to improve Market Share and Improve Customer Spread.. New Product Promotion are also undertaken during the campaigns.
Enablers for the growth of CRM:8
The tremendous growth of interest and investments in CRM across the globe can be attributed to the following macro- environment factors: a) Emergence of service economy b) Emergence of market economy c) Global orientation of businesses d) Aging population of the economically advanced economies.
A. EMERGENCE OF SERVICE ECONOMY:The emergence of service economy is a global phenomenon. Growing importance of services resulted in greater customer orientation as services are characterized by inseparability. It implies that the production and consumption of services are inseparable. In services, one needs to be close to customers to deliver the service offering. The factory is where the customer is and service is offered in real time. The customers perceives the production process as a part of the services consumption, not just the outcome of production process as in traditional marketing of physical goods. Therefore, it is not surprising that service businesses like hotels, airlines, banking, financial services, telecom and retailing were early adopters of CRM. B. EMERGENCE OF MARKET ECONOMY:In addition to the shift toward service, there is a global emergence of the market economy. The focus has shifted from capacity creation under control to the markets. Market- orientated economy necessitated a customer focus and boosted the importance of CRM.
Evolution Of Customer Centric Market:
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Customer centric Marketing Marketing Practices and Philosophy Segment centric Marketing
Product centric Marketing
1970’s
1980’s Time
1990’s
Today, companies face their toughest competition ever. Moving from a product and sales philosophy to a holistic marketing philosophy however, gives them a better chance of outperforming competition. And the corner stone of a well-conceived marketing orientation is strong customer relationships. Marketers must connect with customers- informing, engaging, and may be even energizing them in the process. Customer-centric companies are adept at building customer relationships, not just products; they are skilled in market engineering, not just product engineering.
C. GLOBAL ORIENTATION OF BUSINESSES:10
Increasing international trade became the growth engine for the global economy. Liberalization of markets and trade proved to be a far stronger growth engine. It has eased the entry into foreign markets. Firms need stronger customer- orientation to be able to tap opportunities in new markets while defending themselves in their home markets.
D. AGING POPULATION IN ECONOMICALLY DEVELOPED COUNTRIES:The economically advanced nations are witnessing an aging of their population. Aging of population has been attributed to the combined effects of a slowdown in birth rate and an increase in life expectancy. While an aging population creates new opportunities for wellness, financial well being, safety and security and recreation, it has also slowed the markets for tradition goods and services designed for younger population. Therefore, in these markets, growth is being achieved by increasing the share of wallet and not through growth of markets driven by a growing population. Marketers are now forced to develop a deep understanding of their existing customers and meet their everchanging needs through suitable products and services. Indeed, most large companies, especially the service sector, wants to become one shop-stop for the customers.
Importance and Usefulness of CRM:11
Customers are profitable over a period of time:Customers become more profitable with time because the initial acquisition cost exceeds gross margin while the retention costs are much lower. When an organization retains the customers, it gets a larger share of customer’s wallet at a higher profit.
Customer profitability is skewed:Top 20 percent of customers contribute to 150 percent of the profits while the bottom 20 percent drain 50 percent of the profits and the rest 60 percent just break even. The implications of such a skew in customer profitability and revenue contribution are startling for organizations, which used to conventionally treat ‘all customers as equal’.
Marketing benefits of CRM:CRM gradually reduces organizations dependence on periodic surveys to gather data. Collection of data related to buying and consumption behavior will be an ongoing process. In many cases, the transaction data is automatically collected sometimes real time as in the e- commerce transactions. This rich repository of customer information and knowledge updated through regular interactions and actual customer transactions and purchase behavior will help marketers develop and market customer –centric products successfully.
IMPLEMENTING CRM:-
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Development of Information Technology, Data Warehousing and Data Mining has now made it possible for firms to maintain one-to-one relationships with their key customers. Regrettably, companies spend most of their effort in acquiring new customers and not enough in retaining and growing business from their current customers. Companies spend as much as 70 percent of their marketing budget to attract new customers while 90 percent of their revenues come from current customers. Many companies lose money on their new customers during the first few years. By over focusing on acquiring new customers and neglecting current customers, companies experience a customer attrition rate of between 10 and 30 percent a year. Then they waste further money on a never-ending effort to attract new customers or win back excustomers to replace those they just lost. Companies emphasize customer acquisition at the expense of customer retention in several ways. They set up compensation systems that reward getting new customers and do not reward salespeople as visibly for maintaining and growing existing accounts. Thus, salespeople experience a thrill from winning a new account. Companies also act as if their current customers will stay on without special attention and service.
OBJECTIVES AND SCOPE OF PROJECT: Market survey was carried out keeping in mind Top 100 customers of company:13
PRIMARY OBJECTIVE:
1. To find out Customers Relationship Management (CRM) effectiveness for
Clariant Chemicals (India) Ltd.
SECONDARY OBJECTIVE:
1. To find out use of Key Accounts Management Systems in Clariant. 2. To Understand and analyze Customer Relationship Management (CRM) at
Clariant.
3. To study Importance and Usefulness of CRM in business of Textile.
SCOPE OF THE PROJECT:
1. To analyze top 100 customers of the company according to sales. 2. To understand their needs through survey forms those were given, to measure the
areas of improvement.
LIMITATIONS OF PROJECT:
1. The survey was conducted online, as the customers are spread throughout India in
many regions. 2. Span of time was limited. 3. According to their customer database of around 3000 customers only top 100 customers were selected for survey.
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Organization Profile:-
NAME:CLARIANT CHEMICALS (INDIA) LTD.
Clariant, is represented on five continents with over 100 group companies, and employs around 20,000 people. Headquartered in Muttenz near Basel, Switzerland. And has Mumbai headquarters At Kolshet, Thane.
? Clariant is represented in 33 countries
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? Investment in high growth countries ? Global production and safety standards
VISION OF COMPANY:-
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Becomin Specialt
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MISSION OF COMPANY:Our commitment to service contributes to the success of our customers. We combine leading-edge technology and innovations with superior applications and customer service skills.
Clariant Values:Customer Focus:- We concentrate our efforts on the individual requirements of our customers and help them strengthen their competitive position and performance. Personal Engagement:- We achieve results through individual commitment, continual skills development and entrepreneurial behavior.
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Team Orientation:- We rely on the strength of teamwork to achieve synergies and realize our full potential. Innovation:- We utilize our extensive know-how and experience throughout the company to continuously bring new services, applications and products to the market. Shareholder Commitment:-We strive for enduring value creation for the benefit of our shareholders. Integrity:- We are a trustworthy, loyal and respectful partner in all our internal and external relationships. Sustainability:-We contribute towards sustainable development by finding the best balance between environmental, social and economic needs.
HISTORICAL BACKGROUND:Clariant is a global leader in the field of specialty chemicals. Strong business relationships, commitment to outstanding service and wide-ranging application knowhow make Clariant a preferred partner for its customers. Clariant is represented on five continents with over 100 group companies, and employees around 20,000 people. Headquartered in Muttenz near Basel, Switzerland, it generated sales of over CHF 8 billion in 2008. Clariant's businesses are organized in four Divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Masterbatches and Functional Chemicals. Clariant is committed to sustainable growth springing out of its innovative strength. Clariant’s Innovative products play key role in its customers’ manufacturing and treatment processes and else add value to their end products.
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? 1995 Clariant / IPO* from Sandoz ? 1997 Merger Hoechst ? 2000 Acquired BTP Plc. ? 2006 Acquired Ciba Masterbatches PRODUCT PROFILE:COMPANY HAS AROUND 3000 PRODUCTS THE ARE BROADLY DIVIDED INTO THE FOLLOWING
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Textile, Leather and Paper Business Profile ? Leading supplier of chemicals and dyes for textile, leather and paper industries ? Provider of innovative products and service-driven solutions adding value to your products ? Global and local product and service range ? Harmonized quality and product safety standards
CURRENT STATUS OF COMPANY:-
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DIVISIONAL SALES OF CLARIANT FOR YEAR 2008
Company has started focusing on customers of textiles to increase their market share in that sector as current market share of Clariant is around 25.5% of the total textile industry market.
FUTURE PLANS OF COMPANY:-
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Company has taken up “Project BRAHMA” which involves many things. This will help the company’s distributors to enhance their performance. The below Diagram explains the future plans of company.
These future plans are taken into mind to increase EBIT of the company. Reduction in inventory will help the company to reduce the Working capital of company, as company is adopting Japanese technique to reduce the inventory cost (Just-in-time).
The
Company has total Turnover of about 3,253,000,000 from only Textile, Leather and Paper business. The future plan for the company is to increase their turnover at least by 12% this year.
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ABOUT CUSTOMERS AND MANAGEMENT SYSTEMS USED AT CLARIANT:Business to business model is the buying process in which, one industry buys the product of other industry to use the product as an auxiliary (raw material). Clariant produces dyes and chemicals for textiles, which are consumed by more than 3000 customers in India. The process of selling takes place through distributors of company; who are the primary buyers of the products. There are about 3000 customers of the company all of them are handled by the distributors and some are handled directly. Indian Business is divided into Territory i.e. Five Zones North, South, East, West and Central. Zones are subdivided into Regions based on the Concentration of Customers. Each Zone is under a Zonal Manager and is responsible for the CRM in the Zone. He assigns every Regional Executive in his team a set of Customer. The Regional Executive in region along with the concern Distributor is responsible for servicing the Customer are the first Contact Point with the Customer. Customer relationship management is the process of carefully managing detailed information about the individual customer and all customer “touch points” to maximize customer’s loyalty. A customer’s touch point is any occasion on which a customer encounters the brand and product- from actual experience to personal. Customer relationship management enables companies to provide excellent realtime customer service by developing a relationship with each customer through the effective use of individual account information.
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NORTH
EA
CENTR AL
ST
WES T
TH
Clariant has Distributor as the Intermediatary who buys the products and acts as outsourced Supply Chain for Clariant . Distributors provides the logistical and credits support and ensures total Customer Satisfaction.
SO
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U
Customer Club Membership 3000 Customers are segmented into four Clubs Customer Segmentation Primarily based on following parameters 1. Customer Potential 2. Sales 3. Growth Opportunity Additional Parameters 4. New Customers 5. Customers Catering to Retailers and Brands 6. Customers Profitability The customers are assigned Club Membership based on the service needs. Levels of responsibility for servicing are identified.
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Club Membe
Differentiation of
L vl ee 1
Service Needs and
Mmes i e br h Be lu
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Customer Management System: -
Customer M
Co ordination with the Distribution Network 1. 2. 3. Monthly coordination meetings(MCM) Regional review meeting Half Yearly Review meetings Monthly coordination meetings (MCM)
Dt aa
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Monthly co ordination meeting are conducted between Clariant Executives and Distributors to review the Performance and having know many important things these include Sales Performance Understand the Market trends. Action Plans are chalked out based on the review to have a unidirectional approach with the customer.
Market trends are understood for the Impact they can have on the customer and Clariant. As delivering value product as per customers needs is the main aim for the company this understanding of impact is very crucial .
REGIONAL REVIEW MEETING: These meetings are held once in every quarter within each region. This is to discuss every problem that distributors are facing or to know what the new trends in market are. Status of the Projects given by the customers , GAPS or difficulties are review and hurdles if any are cleared.
HALF-YEARLY REVIEW MEETING (HYRM):29
Half-year performance of the company is discussed in this meeting with all executives of our company who are situated in different regions of India. The meeting of continues for about 3days and all the matters of textile industries is discussed. Current scenario of textile market is being discussed which helps the company to change their policies according to the market.
KAMS (Key Accounts Management System):Key account management system is one of the most popular and successful approaches used for customer retention and development. It has recognized as an important part of the customer relationship management in business- business marketing. This is the other system that is used by Clariant; this system consists of top hundred customers who contribute to around 45.6% of total sales of the company.
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Key accounts can be defied as a customer in a B2B market identified by a selling firm as of strategic importance. Generally, managers analyze their customers and then try to group them into various categories based on the performance and value of the customer to the firm. Many managers attempt to segment customers on the basis of their profitability. In this system company has maintained the record of top 100 customers which are already prepared and what are the ongoing projects, visit records and many more thing are been recorded.
KAM as a growth and development strategy:Most of the firms focus their KAM efforts on customer retention. This brings about stability to the company’s operations. The more important thing to do in such a condition is to be able to capitalize upon the potential of key accounts and use it to increase the share of profitable customers. A firm may fail to use KAM as a growth and development strategy if it does not have the diagnostic tools to gain an in depth knowledge of the customers business and how they add value to the firm. An essential feature of a successful KAM is to combine customer retention with the building customer share. KAM is an organizational process that assumes relationships are not static, and they evolve over a period of time. Each interaction is a consequence of the relationship that exists between the customer and the supplier. The interaction, in turn, influences the relationship and its growth.
Customer Relationship management holds the major driver of company profitability is the aggregate value of company’s customer base. To improve the value of customer base following Customer Strategies should be used: ? Reducing the rate of customer defection. ? Enhancing the growth potential of each customer ? Making low profit customers more profitable or terminating them.
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? Focusing on High Value Customers.
Maximizing customer value means cultivating long-term customer relationships. Clariant is now moving from wasteful mass marketing to precision marketing, which is designed to build strong customer relationships through powerful customer relationship management and through customer management system undertaken by our company. Retaining customer is the best way to increase the profits and sales and this is necessary as to increase the market share of company. Good relationship with profitable customers is a key to success. The company should concentrate on repeat customers who buy the product only from them. The distributors who are the primary buyers of our company should give these details. Distributors should also be encouraged to buy more and
more and attract some new target customers.
SPECIAL AWARDS TO CLARIANT:-
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SPECIAL MENTIONS:CLARIANT IS GLOBALLY CERTIFIED. ? Prerequisite: Standardized business processes worldwide ? Audited management system for quality, environment, safety and health
? ISO:-
9001 14001 18001
ISO:OHSAS:-
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RESEARCH METHODOLGY:Research methodology is the way to systematically solve the problem. Researcher, as he proceeds with his research he has to analyze thousands of small points which may act as barrier, if attention is not paid to them.
Researcher not only need to know how to develop certain test, how to calculate the mean, the mode, the median etc, but they should also know which of these techniques are relevant and which are of no use and what would they mean and indicate and why researcher needs to understand the assumption underlying various techniques and they need to know the criteria by which they can decide a particular method or procedure that will be applicable to the problem that may arise in his research. For all this researcher need to make a blueprint of his research work so he/she can carry out the research work smoothly. All this means that it is necessary for the researcher to design the methodology for his problem as the same may differ from problem to problem. It is similar to the architect who designs a building and evaluates each and every small point like on what basis he selects particular size, number of doors, location of doors, windows, ventilators, what material should be used etc. The first step towards any research is to identify the problem and look at it objectively. After the problem is found, the steps for the research should be finalized as follows:
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Types of sample to surveyed as to get the results. Interpretation of data to get the required result through analysis. Provide the necessary recommendation and suggestion if any.
? ?
Define the problem
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Customer relationship management (CRM) is the emerging management activity in the business world. The problem which the company needed to solve was to find the effectiveness their customer management systems used by them.
RESEARCH DESIGN:
The research study adopted for the survey was descriptive and diagnostic where much effort was given to certain aspects such as-
• • • • • •
Choice of research design Designing the methods of data collection Selecting the sample Processing and analyzing the collected data Preparing the research report Findings
Sample size: 100
Geographical coverage: All INDIA
SAMPLING DESCRIPTION:
1. SAMPLE SIZE:Total sample taken by me was 100 top customers which included direct customers and distributors customers.
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2. SAMPLE TECHNIQUE:In the non-probability Sampling technique “Quota Sampling” was used to select the retailers. 100 customers were contacted as the where at top or in other words, high potential and high sales customers were selected. The project was carried out for 60 days and after collecting the detailed information from the customers, the data was analyzed. To conduct the survey samples were selected and those samples were the top100 customers of company. During survey, I contacted all the top hundred customers of company through calls, mails and some by meeting. In this company has not provided any data. I was told to prepare CUSTOMER DEVELOPMENT FILE of Top 100 customers from 3500 customers of company which consisted of the following:1.
Customer Profile: - Contains many things that are very much
important to the company.
1.
Details of customer, who is the distributor, what is the club of the customer. Phone numbers, and relation with distributor.
2. Key personnel name, Designation, Decision making unit, E-mail address,
3. Financial status, Credit limit, Agreed credit days, actual credit days, Credibility. 4. Purchasing system, inventory levels, Ordering system, Lead days, follow up Required (Days). 5. Information about the customer buying data, how much he buys what is Annual consumption, what is the actual quantity purchased and what is market share of Clariant, Etc. These data about the Customer’s Potential and Share helps to analyze a customer. The Gaps in current offering are viewed as the opportunities area for Clariant.
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2. Customer Card Salesata about frequency, regularity and quantum of purchase of products made by a Customer. This is useful to know Business Gained and Business lost if any. It also helps in the decision making process for Identifying Target Products for Customer Development.
3. Price List:Since, company deals in more than 3000 products. For ready reference the price list for products used or targeted for development with the Customer is readily available for reference during the visits or while attending any phone calls / enquiries.
4. Details of Project planned with the Customers. The projects, which are being undertaken with the customer, are listed. The status of progress is also updated on regular basis.
5. Copy of all Important Correspondences with the Customer Important correspondence between the distributor, Clariant Team and customer are recorded as to know about what is going on between both of these. This data will help us to know about customer needs and wants.
6. Visit Records:Summarized Visit records are maintained to ensure continuity and feeling of close relationship.
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7. Pending actions with Customer:Before visit, the Pending actions are referred to avoid surprises.
DATA COLLECTION:The research is carried out with the help of two types:-
1. PRIMARY DATA:•
Observation method: - For collecting and analyzing the sales data from Customer Sales Information and collecting the sales data of each customer and differentiating them into top customers.
•
Questionnaire method: - For collecting the several information related to services provided by company and maintaining relations.
2. SECONDARY DATA:Referred many magazines and presentations provided by company. Read some of the novels on CRM. Referred some books on CRM.
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DATA ANALYSIS AND INTERPRETATION:A comprehensive survey encompasses various stages such as collection of data, analysis of data, drawing inferences thereafter and presenting the same in the proper format to the person concern. Data analysis in one of the most essential stages of survey. This stage is important as it has the potential to destroy the objective altogether if the analysis is not done in view of the end objective. In this step, analysis of the whole raw data has done and the various factors are found out which were important for this project.
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LOGISTICS
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Product Availability 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL TOTAL
more than As per expectati expectati on on 7 8 5 20 1 3 0 16 2 14 19 63
Just meeting Below expectati expectati ons on 7 0 7 0 0 3 4 21 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:According to the survey conducted, from 100 customers 63% of customers told that the availability of product is as per their expectation and 21% said that it is just meeting their expectation, these where the customers who used Stabilizer(name of a
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chemical/product of company) which mostly had stock outs because of less production . And rest 16% told that product availability is more than what they expected.
Delivery Time 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 2 3 4 15 0 4 0 10 3 15 19 55
Just meeting Below expectatio expectati ns on 17 0 13 0 0 1 4 35 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 100
Interpretation of above graph:From above graph we can say that there is an area of improvement for company so that the delivery time should be reduced as only some of the top ten customers responded that they are totally satisfied with company’s delivery of the product which is being delivered to them.
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Documentation 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 14 8 15 17 3 9 15 56 0 11 8 44
Just meeting Below expectatio expectati ns on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectations .
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:As we know that each and every company and their customers want to keep the documentation perfect between each other to avoid any misinterpretation. Therefore, no room for error is kept by Clariant. That’s why 56 customers feel that company keeps documentation which they didn’t even expected.
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Packing Quality 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 13 8 11 16 0 3 1 28 3 17 22 66
Just meeting Below Very much expectati expectati below ons on expectations. 1 0 0 5 0 0 0 0 0 6 0 0 0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph
ackaging quality according to customers is just as per they expected. Some customers feel that the packaging quality is more than expectation these are all from last top 30 customers as company serves same to all their customers but perception of each customer differs.
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Keeping you informed 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 0 22 2 30 0 3 1 6 3 17 22 94
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
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more than expectati on
Technical Literature Content
As per expectati on 20 20 2 14 15 71
Just meeting expectati ons 2 12 0 4 8 26
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
1 2
3
4
5
NORTH SOUTH EAST WEST CENTR AL Total
0 0 1 2 0 3
0 0 0 0 0 0
22 32 3 20 23 100
TECHNICAL SERVICES:-
Interpretation of above graph:Technical literature is something which our company provides to customers which comes from R&D department. These are been provided to the customers as per the concentration of any chemicals and how should that be used.
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more than expectati on
Response Time
As per expectati on 17 25 3 16 22 83
Just meeting expectati ons 3 4 0 1 1 9
Below expectati on 0 2 0 0 0 2
Very much below expectatio ns.
NORTH SOUTH EAST
4
2 1 0 3 0 6
0 0 0 0 0 0
22 32 3 20 23 10 0
1 5
2
3
WEST CENTR AL Total
Interpretation of above graph:If there is any query which is to be cleared by R&D department of the company is the area which the company should focus on to improve it. 83% of the customers are satisfied with the response time taken by company but 2% of customers are there which are not satisfied with response time.
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NORTH
Technical Competence 1 2 3 4 5
more than As per expectati expectati on on 7 8 5 1 3 2 18 20 2 14 18 62
Just meeting Below expectati expectati ons on 7 0 7 0 3 3 20 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
SOUTH EAST WEST CENTR AL Total
Interpretation of above graph:Technical competence is a most crucial part of the company as all products are technical. 62% of the customers are satisfied with the overall technical competence of the company but 20% are satisfied but it is not up to the mark.
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Innovation 1 2 3 4 5
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 1 18 2 21 0 3 4 16 12 19 11 69
Just meeting Below expectati expectati ons on 2 1 9 0 0 0 0 0 0 11 0 1
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:69% of the customers are satisfied with innovative ideas of company. Some are not. Company has to improve on this and develop a team for this.
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more than expectati on
Keeping you informed 1 5 2 3 4
As per expectati on 13 20 0 14 19 66
Just meeting expectati ons 0 0 0 3 4 7
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
NORTH SOUTH EAST WEST CENTR AL Total
9 12 3 3 0 27
0 0 0 0 0 0
22 32 3 20 23 10 0
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PRODUCT INFORMATION
more than As per expectati expectati on on 20 2 20 12 3 0 4 3 50 16 20 50 Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
Product Information 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:The company provides all the information to the customer about the product that is how it can be used. All technical information is given to customers.
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Product Range 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 20 2 30 2 0 3 3 14 67 17 4 28
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Company has around 800 products which are being served in textile market by them which helps the customers to buy their products and it is a ‘one stop shop’ for each customer. So the product range of the company is fair enough. Therefore, 67% of customer’s thing that product range of Clariant is more than expectation.
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Product Consistency 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 22 0 20 4 0 3 4 1 47 16 22 45
Just meeting Below expectati expectati ons on 0 0 8 0 0 0 0 0 8 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graphroduct consistency of our company is good in a way that their product quality is the same all time and there is no difference in standard of the product. Product mix of company is very proper which helps them to be at the top and have less fear of their competitors.
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Price 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 2 20 12 20 0 4 0 18 3 16 23 82
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:As company serves each of their customers as a king they also charge a price which is above market price then also the customers buy their products because of best treatment given to them. According to survey done of the top customer, it was concluded that the price is not a matter but relations does matter.
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more than expectati on
Keeping you informed 1 2 5 3 4
As per expectati on 10 24 3 16 23 76
Just meeting expectati ons 0 0 0 0 0 0
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns
NORTH SOUTH EAST WEST CENTR AL Total
12 8 0 4 0 24
0 0 0 0 0 0
22 32 3 20 23 10 0
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MARKETING SERVICES
more than As per expectati expectati on on 22 0 30 2 3 15 13 83 0 5 10 17 Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
Visit Frequency 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Maintaining good relation with customers is very much beneficial for a company. Company conducts many visits to all of their customers to know about their products. Meetings are conducted on monthly basis with each customers and on call feedbacks are taken from all the customers.
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more than expectati on
Accessibility on Call 1 2 5 3 4
As per expectati on 12 27 3 17 18 77
Just meeting expectati ons 0 0 0 0 0 0
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
NORTH SOUTH EAST WEST CENTR AL Total
10 5 0 3 5 23
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Accessibility on call means easily approachable which is the most important thing. Customers get connected with distributors of company very easily through calls and they are satisfied with this. This the main “touch point” for the company to maintain their relations with customers.
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Attentiveness 1 2 5 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 6 16 23 9 3 14 4 50 0 6 19 50
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 100
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NORTH
Response Quality 1 5 2 3 4
more than As per expectati expectati on on 12 10 5 0 3 4 24 27 3 17 19 76
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 100
SOUTH EAST WEST CENTRA L Total
Interpretation of above graph:Response Quality from company to customers is very good by the company. 76% of the customers think that response quality is as per expectations. And rest 24% thing that it is more than what they expected.
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more than expectati on
Keeping you informed 1 5 2 3 4
As per expectati on 8 12 3 16 4 43
Just meeting expectati ons 0 0 0 0 0 0
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
NORTH SOUTH EAST WEST CENTR AL Total
14 20 0 4 19 57
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Keeping a customer informed is a crucial part of any relationship to be maintained. In all of the above graphs customer is being informed about each and every thing about what is going on in the company. A customer is kept informed about all the things to avoid any misunderstandings.
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OBSERVATION:1.
All customers are divided according to their sales data provided by the company. This was observed from “CUSTOMER SALES INFORMATION” a system being used in the company.
Suspects: These customers are the customers who purchase the product from the competitors and not from Clariant. Clariant wants to capture the market share of these customers.
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These customers have high potential to buy companies product but they buy the product from competitors.
Prospectsrospects are the customers who buy the product from Clariant very often but they also buy from their competitors. Inactives:Inactives are the customers who contribute to only 2% of the total sales of the company. These customers are mainly who purchase some specialty chemicals from Clariant and rest from companies competitors. Small:These customers are small players in market who purchase only from Clariant but they are small manufacturers of textiles. They contribute to only 29% of total sales of company there are about 2800 such small customers. Medium:The medium customers are the customers who contribute to around 26% of total sales there are only 69 customers. Big:27% of total sales are contributed by the big 26 customers. Company takes into account that good relations are maintained with these big customers who buy in a large quantity through distributors. Top:-
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16% of total sales are contributed by top 5 customers of company. Very good relations are maintained with these top customers as they contribute to almost 40% of the total profit of company. Lot of focus on these customers is given in this context.
2. Analyzing Customer revenue and cost data to identify current and future highvalue customers. 3. CRM has also helped Clariant to process their transactions faster as customer database is easily available and any customer’s data can be known any time, any place. 4. Very important thing for which company feels that it is worth to keep this system effectively it is to track the defection rate of each customer, which means that calculating that which customer has what problem from the company and how can it be solved in a very short time.
5. Track customer satisfaction levels through feedback forms/survey forms, which
are being used. This enables the company to know what a customer wants. Are they satisfied with the current policy of the company???
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FINDINGS:Any research project is rendered incomplete if the findings are not conveyed in the manner understandable to readers of the project document. Therefore, the presentation of finding is as important as the analysis itself. The presentation of the findings can be found in the findings, conclusion and recommendation section of the report. ? CRM promises to help company to know their customers very well.
? CRM helps the company to understand which customers to keep and which ones they should be willing to lose - and why? ? CRM also helps the decision-making unit of a company.
? CRM tools analyze and predict customers’ requirements.
? CRM helps the company to retain their customers as competitors are always there in market and play many strategies to gain market share of Clariant.
? CRM is about managing relationships more effectively so you can drive down
costs while at the same time increasing the viability of your product and service offerings.
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SUGGESTIONS:? Overall it helps in proper targeting, spending money wisely, saving time and Customer satisfaction. CRM also means automating many of business processes and accompanying Analysis.
? CRM helps a company to surmise a customer’s unspoken needs.
?
? CLARIANT should always focus on the key customers and build strong relationship with them.
? Customers should be managed properly by understanding their needs and
accordingly company should change their policies. This will help the company to generate high level of customer satisfaction with every interaction.
? CRM is a positive development for companies and for society as a whole. It will humanize relationships. It will make the market work better. It will deliver better solutions to customers.
? Company should retain top customers and should try to convert prospects and
suspects to buy the product from Clariant only by using various marketing strategies.
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CONCLUSION:Research is said to be the journey from unknown to known. This journey started with observing and identifying the various aspects of “Customer Relationship Management”. In the midway it revealed several unique strategies used at Clariant to maintain better relations and to retain customers. The strategy used was through “market campaigns”. After analyzing all the facts and data, which were collected and prepared using various tools has helped the company to know what they should do and what not to do. In other words do’s and dont’s are known to company. After “Marketing Concept” we can say that “CRM” is the other phase to attract, retain and develop customers. Each and every company is using as to maintain their customers. This also helps the company to know their prospect buyers and to target their product in market easily. Companies must wake up to the fact that they have a new boss—the customer. If they are not directly serving the customer, they had better serve someone who is. If they do not take care of their customers, someone else will. Thus we can conclude that customer is the king of the market and must be dealt with proper attention.
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BIBLIOGRAPHY:•
Some presentations of company. Marketing management(13th edition) – Philip Kotler.
•
• Customer relationship management— A Strategic Perspective-www.ibef.org G Shainesh and Jagdish Sheth.
•
• Customer Relationship Management is not an option — John Woods.
•
CRM – Prabhat Jain.
• Marketing Research – G.C.Beri www.clariant.com
•
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ANNEXURE:
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doc_860828396.doc
check it out
EXECUTIVE SUMMARY:Customer Relationship Management: What does this mean? What’s an ‘unfriendly’ word like management doing alongside such ‘human’ concepts as customer and relationship? What is a customer? A person who buys… What is a relationship? The state of being connected… What is management? The science of controlling… So CRM should mean controlling the relationship with a customer. CRM is the hot topic today in corporate world each and every company should manage the relations with their customers very carefully. Important point is to get connected with customers in any way; it can be calls, emails, meetings, these are known as “TOUCHPOINTS”. And the new paradigm will be, 'Now that we know who you are, how do we get access to you wherever you are?' One thing is certain the customer will be at the center of the enterprise. I have studied customer management systems used by CLARIANT these systems are ? CUSTOMER DEVELOPMENT FILES.
? KEY ACCOUNTS MANAGEMENT SYSTEM (KAMS).etc
“CRM is all about how you attract, develop and retain customers.” Always treat your customers as a king as you are dependent on customers, they are not dependent on you. Customer relationship management is only thing which helps the company to know their customers better. Now, we will see some aspects of CRM and how it is implemented and used practically.
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By tapping these tools and its growing needs, the topic I chose was “To study customer relationship management with the help of Key Accounts Management System (KAMS)” which was carried out for Clariant Chemicals (India) Ltd. This project includes both observation and questionnaire method. Observation required the sales to each top hundred customers of Clariant and questionnaire method was to understand customer relationship management of the company. Questionnaire was e-mailed to top 100 customers and then they had to reply for the questionnaire which was given to them within the time period given to them. Questionnaire was circulated through mails because of the geographic restrictions as the customers of Clariant are scattered all over India.
INTRODUCTION:2
“Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for company and customers” -- Parvatiyar and Sheth
CRM is a hot topic today in corporate world or say Owing to the increasing use of CRM in many companies to manage their prospect buyers (customers); it makes sense to study the influence of the use of Customer Relationship Management in Practice. In short, to understand the customer relations and also the factors which have lead to increase the use of Customer Relationship Management.
Much of the money spent is on Customer Relationship Management by each company today to increase the sale of their product, to know what the reason behind spending money is???
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The emergence of service as well as market economy, global orientation of businesses, and aging population of the economically developed economies have been identified as the growth drivers for CRM. Increasing customer expectations and affordable technology advances, as primary drivers of CRM adoption.
LITERATURE REVIEW:-
What should our aim be with customers?
4
First, follow the Golden Rule of Marketing: “Market to your customers as you would want them to market to you”. Second, recognize that your success depends on your ability to make your customers successful. “Aim to make your customers better off. Know their needs and exceed their expectations.” Jack Welch, retired CEO of GE, put it this way: “The best way to hold your customers is to constantly figure out how to give them more for less.” And remember, customers are increasingly buying on value, not on relationship alone.
We now live in a customer economy where the customer is king. This is a result of production overcapacity. It is customers, not goods, which are in short supply.
5
Companies must learn how to move from a product-making focus to a customerowning focus. Companies must view the customer as a financial asset that needs to be managed and maximized like any other asset. Tom Peters sees customers as an “appreciating asset.” They are the company’s most important asset, and yet their value is not even found in the company’s books. Recognizing the value of this asset will hopefully lead companies to redesign their total marketing system toward capturing and customer lifetime value through their products/services portfolio and branding strategies. Over 30 years ago, Peter Drucker emphasized the importance of customer thinking to the success of a firm. He said “Purpose of a Company is to create a customer. Therefore, the business has two— and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” L. L. Bean, the outdoor mail order firm, wholeheartedly practices a customeroriented credo: “A customer is the most important visitor on our premises. He is not dependent on us—we are dependent on him. He is not an outsider in our business—he is a part of it. We are not doing him a favor by serving him . . . he is doing us a favor by giving us the opportunity to do so.”
Imperatives of CRM 1. Acquiring Right Customer : 6
According to Customer Relationship Management is truly a part of any company, and here in Clariant the company has adopted this system to take care of there important customers. The company has acquired right customers who are the top 100 customers of our company. There purchase quantity is very high and accomplish to around 70% of companies sales. Market share of these customers is also good in comparison of the others. These are the loyal customers of our company.
2. Crafting Right Value proposition : This means that company should know what are the customer needs today and what will be the needs tomorrow. Clariant at its best try to know that what does a customer wants and are they able to fulfill that. This is done through many things through survey forms, feedback forms, asking the customers through distributors about their product, contacting the direct customers and knowing every thing, company also analyzes what is the competitor’s product and testing of competitors is done in lab and then conclusions are made accordingly. This is the best part of the company that they know how is the competitor going to enter its product in market.
3.
Instituting the best processes : Research and development department does the research that how should the
production processes go on in a better way. The research should be based on best way to deliver customers, to invest in right technologies. Because of this research, company has shifted their plant from Thane where it was able to produce 1 ton for example and they shifted the plant to Roha near Panvel, which has the production capacity of around 10 times better. This is done in the sense to avoid stock outs of some products, which are in high demand. 4. Learning to retain customers : -
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Mixture of all of above is retaining customers. The major turn offs for our customers would be poor supply chain, products not according to specified quality, stock outs, no proper delivery time and many more things. These all should be overcomed that would help the company to retain the customers and maintain good relations with them. Our company takes into account a different policy or strategy that is MARKET CAMPAIGN. Following strategy are used to gain customer: Win Back strategy should be used: Regardless of nature of the category or how hard companies may try, some customers inevitably become inactive or drop out. The challenge is to reactive dissatisfied customers through win back strategies. It’s anytime easy to attract old customers than to find new ones. This is because the company knows the history of the customers and what exactly he wants can be known very much easily. Key is to analyze the causes of customer defection through lost customer’s survey and win back only those who have strong profit.
Strategy used by CLARIANT to Retain Customers is “Market Campaigns”
ifferent companies use many different strategies. But Clariant use Market campaigns, the only reason to use this strategy is to improve Market Share and Improve Customer Spread.. New Product Promotion are also undertaken during the campaigns.Enablers for the growth of CRM:8
The tremendous growth of interest and investments in CRM across the globe can be attributed to the following macro- environment factors: a) Emergence of service economy b) Emergence of market economy c) Global orientation of businesses d) Aging population of the economically advanced economies.
A. EMERGENCE OF SERVICE ECONOMY:The emergence of service economy is a global phenomenon. Growing importance of services resulted in greater customer orientation as services are characterized by inseparability. It implies that the production and consumption of services are inseparable. In services, one needs to be close to customers to deliver the service offering. The factory is where the customer is and service is offered in real time. The customers perceives the production process as a part of the services consumption, not just the outcome of production process as in traditional marketing of physical goods. Therefore, it is not surprising that service businesses like hotels, airlines, banking, financial services, telecom and retailing were early adopters of CRM. B. EMERGENCE OF MARKET ECONOMY:In addition to the shift toward service, there is a global emergence of the market economy. The focus has shifted from capacity creation under control to the markets. Market- orientated economy necessitated a customer focus and boosted the importance of CRM.
Evolution Of Customer Centric Market:
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Customer centric Marketing Marketing Practices and Philosophy Segment centric Marketing
Product centric Marketing
1970’s
1980’s Time
1990’s
Today, companies face their toughest competition ever. Moving from a product and sales philosophy to a holistic marketing philosophy however, gives them a better chance of outperforming competition. And the corner stone of a well-conceived marketing orientation is strong customer relationships. Marketers must connect with customers- informing, engaging, and may be even energizing them in the process. Customer-centric companies are adept at building customer relationships, not just products; they are skilled in market engineering, not just product engineering.
C. GLOBAL ORIENTATION OF BUSINESSES:10
Increasing international trade became the growth engine for the global economy. Liberalization of markets and trade proved to be a far stronger growth engine. It has eased the entry into foreign markets. Firms need stronger customer- orientation to be able to tap opportunities in new markets while defending themselves in their home markets.
D. AGING POPULATION IN ECONOMICALLY DEVELOPED COUNTRIES:The economically advanced nations are witnessing an aging of their population. Aging of population has been attributed to the combined effects of a slowdown in birth rate and an increase in life expectancy. While an aging population creates new opportunities for wellness, financial well being, safety and security and recreation, it has also slowed the markets for tradition goods and services designed for younger population. Therefore, in these markets, growth is being achieved by increasing the share of wallet and not through growth of markets driven by a growing population. Marketers are now forced to develop a deep understanding of their existing customers and meet their everchanging needs through suitable products and services. Indeed, most large companies, especially the service sector, wants to become one shop-stop for the customers.
Importance and Usefulness of CRM:11
Customers are profitable over a period of time:Customers become more profitable with time because the initial acquisition cost exceeds gross margin while the retention costs are much lower. When an organization retains the customers, it gets a larger share of customer’s wallet at a higher profit.
Customer profitability is skewed:Top 20 percent of customers contribute to 150 percent of the profits while the bottom 20 percent drain 50 percent of the profits and the rest 60 percent just break even. The implications of such a skew in customer profitability and revenue contribution are startling for organizations, which used to conventionally treat ‘all customers as equal’.
Marketing benefits of CRM:CRM gradually reduces organizations dependence on periodic surveys to gather data. Collection of data related to buying and consumption behavior will be an ongoing process. In many cases, the transaction data is automatically collected sometimes real time as in the e- commerce transactions. This rich repository of customer information and knowledge updated through regular interactions and actual customer transactions and purchase behavior will help marketers develop and market customer –centric products successfully.
IMPLEMENTING CRM:-
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Development of Information Technology, Data Warehousing and Data Mining has now made it possible for firms to maintain one-to-one relationships with their key customers. Regrettably, companies spend most of their effort in acquiring new customers and not enough in retaining and growing business from their current customers. Companies spend as much as 70 percent of their marketing budget to attract new customers while 90 percent of their revenues come from current customers. Many companies lose money on their new customers during the first few years. By over focusing on acquiring new customers and neglecting current customers, companies experience a customer attrition rate of between 10 and 30 percent a year. Then they waste further money on a never-ending effort to attract new customers or win back excustomers to replace those they just lost. Companies emphasize customer acquisition at the expense of customer retention in several ways. They set up compensation systems that reward getting new customers and do not reward salespeople as visibly for maintaining and growing existing accounts. Thus, salespeople experience a thrill from winning a new account. Companies also act as if their current customers will stay on without special attention and service.
OBJECTIVES AND SCOPE OF PROJECT: Market survey was carried out keeping in mind Top 100 customers of company:13
PRIMARY OBJECTIVE:
1. To find out Customers Relationship Management (CRM) effectiveness for
Clariant Chemicals (India) Ltd.
SECONDARY OBJECTIVE:
1. To find out use of Key Accounts Management Systems in Clariant. 2. To Understand and analyze Customer Relationship Management (CRM) at
Clariant.
3. To study Importance and Usefulness of CRM in business of Textile.
SCOPE OF THE PROJECT:
1. To analyze top 100 customers of the company according to sales. 2. To understand their needs through survey forms those were given, to measure the
areas of improvement.
LIMITATIONS OF PROJECT:
1. The survey was conducted online, as the customers are spread throughout India in
many regions. 2. Span of time was limited. 3. According to their customer database of around 3000 customers only top 100 customers were selected for survey.
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Organization Profile:-
NAME:CLARIANT CHEMICALS (INDIA) LTD.
Clariant, is represented on five continents with over 100 group companies, and employs around 20,000 people. Headquartered in Muttenz near Basel, Switzerland. And has Mumbai headquarters At Kolshet, Thane.
? Clariant is represented in 33 countries
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? Investment in high growth countries ? Global production and safety standards
VISION OF COMPANY:-
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Becomin Specialt
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MISSION OF COMPANY:Our commitment to service contributes to the success of our customers. We combine leading-edge technology and innovations with superior applications and customer service skills.
Clariant Values:Customer Focus:- We concentrate our efforts on the individual requirements of our customers and help them strengthen their competitive position and performance. Personal Engagement:- We achieve results through individual commitment, continual skills development and entrepreneurial behavior.
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Team Orientation:- We rely on the strength of teamwork to achieve synergies and realize our full potential. Innovation:- We utilize our extensive know-how and experience throughout the company to continuously bring new services, applications and products to the market. Shareholder Commitment:-We strive for enduring value creation for the benefit of our shareholders. Integrity:- We are a trustworthy, loyal and respectful partner in all our internal and external relationships. Sustainability:-We contribute towards sustainable development by finding the best balance between environmental, social and economic needs.
HISTORICAL BACKGROUND:Clariant is a global leader in the field of specialty chemicals. Strong business relationships, commitment to outstanding service and wide-ranging application knowhow make Clariant a preferred partner for its customers. Clariant is represented on five continents with over 100 group companies, and employees around 20,000 people. Headquartered in Muttenz near Basel, Switzerland, it generated sales of over CHF 8 billion in 2008. Clariant's businesses are organized in four Divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Masterbatches and Functional Chemicals. Clariant is committed to sustainable growth springing out of its innovative strength. Clariant’s Innovative products play key role in its customers’ manufacturing and treatment processes and else add value to their end products.
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? 1995 Clariant / IPO* from Sandoz ? 1997 Merger Hoechst ? 2000 Acquired BTP Plc. ? 2006 Acquired Ciba Masterbatches PRODUCT PROFILE:COMPANY HAS AROUND 3000 PRODUCTS THE ARE BROADLY DIVIDED INTO THE FOLLOWING
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Textile, Leather and Paper Business Profile ? Leading supplier of chemicals and dyes for textile, leather and paper industries ? Provider of innovative products and service-driven solutions adding value to your products ? Global and local product and service range ? Harmonized quality and product safety standards
CURRENT STATUS OF COMPANY:-
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DIVISIONAL SALES OF CLARIANT FOR YEAR 2008
Company has started focusing on customers of textiles to increase their market share in that sector as current market share of Clariant is around 25.5% of the total textile industry market.
FUTURE PLANS OF COMPANY:-
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Company has taken up “Project BRAHMA” which involves many things. This will help the company’s distributors to enhance their performance. The below Diagram explains the future plans of company.
These future plans are taken into mind to increase EBIT of the company. Reduction in inventory will help the company to reduce the Working capital of company, as company is adopting Japanese technique to reduce the inventory cost (Just-in-time).
The
Company has total Turnover of about 3,253,000,000 from only Textile, Leather and Paper business. The future plan for the company is to increase their turnover at least by 12% this year.
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ABOUT CUSTOMERS AND MANAGEMENT SYSTEMS USED AT CLARIANT:Business to business model is the buying process in which, one industry buys the product of other industry to use the product as an auxiliary (raw material). Clariant produces dyes and chemicals for textiles, which are consumed by more than 3000 customers in India. The process of selling takes place through distributors of company; who are the primary buyers of the products. There are about 3000 customers of the company all of them are handled by the distributors and some are handled directly. Indian Business is divided into Territory i.e. Five Zones North, South, East, West and Central. Zones are subdivided into Regions based on the Concentration of Customers. Each Zone is under a Zonal Manager and is responsible for the CRM in the Zone. He assigns every Regional Executive in his team a set of Customer. The Regional Executive in region along with the concern Distributor is responsible for servicing the Customer are the first Contact Point with the Customer. Customer relationship management is the process of carefully managing detailed information about the individual customer and all customer “touch points” to maximize customer’s loyalty. A customer’s touch point is any occasion on which a customer encounters the brand and product- from actual experience to personal. Customer relationship management enables companies to provide excellent realtime customer service by developing a relationship with each customer through the effective use of individual account information.
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NORTH
EA
CENTR AL
ST
WES T
TH
Clariant has Distributor as the Intermediatary who buys the products and acts as outsourced Supply Chain for Clariant . Distributors provides the logistical and credits support and ensures total Customer Satisfaction.
SO
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U
Customer Club Membership 3000 Customers are segmented into four Clubs Customer Segmentation Primarily based on following parameters 1. Customer Potential 2. Sales 3. Growth Opportunity Additional Parameters 4. New Customers 5. Customers Catering to Retailers and Brands 6. Customers Profitability The customers are assigned Club Membership based on the service needs. Levels of responsibility for servicing are identified.
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Club Membe
Differentiation of
L vl ee 1
Service Needs and
Mmes i e br h Be lu
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Customer Management System: -
Customer M
Co ordination with the Distribution Network 1. 2. 3. Monthly coordination meetings(MCM) Regional review meeting Half Yearly Review meetings Monthly coordination meetings (MCM)
Dt aa
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Monthly co ordination meeting are conducted between Clariant Executives and Distributors to review the Performance and having know many important things these include Sales Performance Understand the Market trends. Action Plans are chalked out based on the review to have a unidirectional approach with the customer.
Market trends are understood for the Impact they can have on the customer and Clariant. As delivering value product as per customers needs is the main aim for the company this understanding of impact is very crucial .
REGIONAL REVIEW MEETING: These meetings are held once in every quarter within each region. This is to discuss every problem that distributors are facing or to know what the new trends in market are. Status of the Projects given by the customers , GAPS or difficulties are review and hurdles if any are cleared.
HALF-YEARLY REVIEW MEETING (HYRM):29
Half-year performance of the company is discussed in this meeting with all executives of our company who are situated in different regions of India. The meeting of continues for about 3days and all the matters of textile industries is discussed. Current scenario of textile market is being discussed which helps the company to change their policies according to the market.
KAMS (Key Accounts Management System):Key account management system is one of the most popular and successful approaches used for customer retention and development. It has recognized as an important part of the customer relationship management in business- business marketing. This is the other system that is used by Clariant; this system consists of top hundred customers who contribute to around 45.6% of total sales of the company.
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Key accounts can be defied as a customer in a B2B market identified by a selling firm as of strategic importance. Generally, managers analyze their customers and then try to group them into various categories based on the performance and value of the customer to the firm. Many managers attempt to segment customers on the basis of their profitability. In this system company has maintained the record of top 100 customers which are already prepared and what are the ongoing projects, visit records and many more thing are been recorded.
KAM as a growth and development strategy:Most of the firms focus their KAM efforts on customer retention. This brings about stability to the company’s operations. The more important thing to do in such a condition is to be able to capitalize upon the potential of key accounts and use it to increase the share of profitable customers. A firm may fail to use KAM as a growth and development strategy if it does not have the diagnostic tools to gain an in depth knowledge of the customers business and how they add value to the firm. An essential feature of a successful KAM is to combine customer retention with the building customer share. KAM is an organizational process that assumes relationships are not static, and they evolve over a period of time. Each interaction is a consequence of the relationship that exists between the customer and the supplier. The interaction, in turn, influences the relationship and its growth.
Customer Relationship management holds the major driver of company profitability is the aggregate value of company’s customer base. To improve the value of customer base following Customer Strategies should be used: ? Reducing the rate of customer defection. ? Enhancing the growth potential of each customer ? Making low profit customers more profitable or terminating them.
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? Focusing on High Value Customers.
Maximizing customer value means cultivating long-term customer relationships. Clariant is now moving from wasteful mass marketing to precision marketing, which is designed to build strong customer relationships through powerful customer relationship management and through customer management system undertaken by our company. Retaining customer is the best way to increase the profits and sales and this is necessary as to increase the market share of company. Good relationship with profitable customers is a key to success. The company should concentrate on repeat customers who buy the product only from them. The distributors who are the primary buyers of our company should give these details. Distributors should also be encouraged to buy more and
more and attract some new target customers.
SPECIAL AWARDS TO CLARIANT:-
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SPECIAL MENTIONS:CLARIANT IS GLOBALLY CERTIFIED. ? Prerequisite: Standardized business processes worldwide ? Audited management system for quality, environment, safety and health
? ISO:-
9001 14001 18001
ISO:OHSAS:-
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RESEARCH METHODOLGY:Research methodology is the way to systematically solve the problem. Researcher, as he proceeds with his research he has to analyze thousands of small points which may act as barrier, if attention is not paid to them.
Researcher not only need to know how to develop certain test, how to calculate the mean, the mode, the median etc, but they should also know which of these techniques are relevant and which are of no use and what would they mean and indicate and why researcher needs to understand the assumption underlying various techniques and they need to know the criteria by which they can decide a particular method or procedure that will be applicable to the problem that may arise in his research. For all this researcher need to make a blueprint of his research work so he/she can carry out the research work smoothly. All this means that it is necessary for the researcher to design the methodology for his problem as the same may differ from problem to problem. It is similar to the architect who designs a building and evaluates each and every small point like on what basis he selects particular size, number of doors, location of doors, windows, ventilators, what material should be used etc. The first step towards any research is to identify the problem and look at it objectively. After the problem is found, the steps for the research should be finalized as follows:
?
Types of sample to surveyed as to get the results. Interpretation of data to get the required result through analysis. Provide the necessary recommendation and suggestion if any.
? ?
Define the problem
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Customer relationship management (CRM) is the emerging management activity in the business world. The problem which the company needed to solve was to find the effectiveness their customer management systems used by them.
RESEARCH DESIGN:
The research study adopted for the survey was descriptive and diagnostic where much effort was given to certain aspects such as-
• • • • • •
Choice of research design Designing the methods of data collection Selecting the sample Processing and analyzing the collected data Preparing the research report Findings
Sample size: 100
Geographical coverage: All INDIA
SAMPLING DESCRIPTION:
1. SAMPLE SIZE:Total sample taken by me was 100 top customers which included direct customers and distributors customers.
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2. SAMPLE TECHNIQUE:In the non-probability Sampling technique “Quota Sampling” was used to select the retailers. 100 customers were contacted as the where at top or in other words, high potential and high sales customers were selected. The project was carried out for 60 days and after collecting the detailed information from the customers, the data was analyzed. To conduct the survey samples were selected and those samples were the top100 customers of company. During survey, I contacted all the top hundred customers of company through calls, mails and some by meeting. In this company has not provided any data. I was told to prepare CUSTOMER DEVELOPMENT FILE of Top 100 customers from 3500 customers of company which consisted of the following:1.
Customer Profile: - Contains many things that are very much
important to the company.
1.
Details of customer, who is the distributor, what is the club of the customer. Phone numbers, and relation with distributor.
2. Key personnel name, Designation, Decision making unit, E-mail address,
3. Financial status, Credit limit, Agreed credit days, actual credit days, Credibility. 4. Purchasing system, inventory levels, Ordering system, Lead days, follow up Required (Days). 5. Information about the customer buying data, how much he buys what is Annual consumption, what is the actual quantity purchased and what is market share of Clariant, Etc. These data about the Customer’s Potential and Share helps to analyze a customer. The Gaps in current offering are viewed as the opportunities area for Clariant.
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2. Customer Card Sales
ata about frequency, regularity and quantum of purchase of products made by a Customer. This is useful to know Business Gained and Business lost if any. It also helps in the decision making process for Identifying Target Products for Customer Development.3. Price List:Since, company deals in more than 3000 products. For ready reference the price list for products used or targeted for development with the Customer is readily available for reference during the visits or while attending any phone calls / enquiries.
4. Details of Project planned with the Customers. The projects, which are being undertaken with the customer, are listed. The status of progress is also updated on regular basis.
5. Copy of all Important Correspondences with the Customer Important correspondence between the distributor, Clariant Team and customer are recorded as to know about what is going on between both of these. This data will help us to know about customer needs and wants.
6. Visit Records:Summarized Visit records are maintained to ensure continuity and feeling of close relationship.
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7. Pending actions with Customer:Before visit, the Pending actions are referred to avoid surprises.
DATA COLLECTION:The research is carried out with the help of two types:-
1. PRIMARY DATA:•
Observation method: - For collecting and analyzing the sales data from Customer Sales Information and collecting the sales data of each customer and differentiating them into top customers.
•
Questionnaire method: - For collecting the several information related to services provided by company and maintaining relations.
2. SECONDARY DATA:Referred many magazines and presentations provided by company. Read some of the novels on CRM. Referred some books on CRM.
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DATA ANALYSIS AND INTERPRETATION:A comprehensive survey encompasses various stages such as collection of data, analysis of data, drawing inferences thereafter and presenting the same in the proper format to the person concern. Data analysis in one of the most essential stages of survey. This stage is important as it has the potential to destroy the objective altogether if the analysis is not done in view of the end objective. In this step, analysis of the whole raw data has done and the various factors are found out which were important for this project.
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LOGISTICS
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Product Availability 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL TOTAL
more than As per expectati expectati on on 7 8 5 20 1 3 0 16 2 14 19 63
Just meeting Below expectati expectati ons on 7 0 7 0 0 3 4 21 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:According to the survey conducted, from 100 customers 63% of customers told that the availability of product is as per their expectation and 21% said that it is just meeting their expectation, these where the customers who used Stabilizer(name of a
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chemical/product of company) which mostly had stock outs because of less production . And rest 16% told that product availability is more than what they expected.
Delivery Time 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 2 3 4 15 0 4 0 10 3 15 19 55
Just meeting Below expectatio expectati ns on 17 0 13 0 0 1 4 35 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 100
Interpretation of above graph:From above graph we can say that there is an area of improvement for company so that the delivery time should be reduced as only some of the top ten customers responded that they are totally satisfied with company’s delivery of the product which is being delivered to them.
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Documentation 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 14 8 15 17 3 9 15 56 0 11 8 44
Just meeting Below expectatio expectati ns on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectations .
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:As we know that each and every company and their customers want to keep the documentation perfect between each other to avoid any misinterpretation. Therefore, no room for error is kept by Clariant. That’s why 56 customers feel that company keeps documentation which they didn’t even expected.
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Packing Quality 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 13 8 11 16 0 3 1 28 3 17 22 66
Just meeting Below Very much expectati expectati below ons on expectations. 1 0 0 5 0 0 0 0 0 6 0 0 0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph
ackaging quality according to customers is just as per they expected. Some customers feel that the packaging quality is more than expectation these are all from last top 30 customers as company serves same to all their customers but perception of each customer differs.44
Keeping you informed 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 0 22 2 30 0 3 1 6 3 17 22 94
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
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more than expectati on
Technical Literature Content
As per expectati on 20 20 2 14 15 71
Just meeting expectati ons 2 12 0 4 8 26
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
1 2
3
4
5
NORTH SOUTH EAST WEST CENTR AL Total
0 0 1 2 0 3
0 0 0 0 0 0
22 32 3 20 23 100
TECHNICAL SERVICES:-
Interpretation of above graph:Technical literature is something which our company provides to customers which comes from R&D department. These are been provided to the customers as per the concentration of any chemicals and how should that be used.
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more than expectati on
Response Time
As per expectati on 17 25 3 16 22 83
Just meeting expectati ons 3 4 0 1 1 9
Below expectati on 0 2 0 0 0 2
Very much below expectatio ns.
NORTH SOUTH EAST
4
2 1 0 3 0 6
0 0 0 0 0 0
22 32 3 20 23 10 0
1 5
2
3
WEST CENTR AL Total
Interpretation of above graph:If there is any query which is to be cleared by R&D department of the company is the area which the company should focus on to improve it. 83% of the customers are satisfied with the response time taken by company but 2% of customers are there which are not satisfied with response time.
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NORTH
Technical Competence 1 2 3 4 5
more than As per expectati expectati on on 7 8 5 1 3 2 18 20 2 14 18 62
Just meeting Below expectati expectati ons on 7 0 7 0 3 3 20 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
SOUTH EAST WEST CENTR AL Total
Interpretation of above graph:Technical competence is a most crucial part of the company as all products are technical. 62% of the customers are satisfied with the overall technical competence of the company but 20% are satisfied but it is not up to the mark.
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Innovation 1 2 3 4 5
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 1 18 2 21 0 3 4 16 12 19 11 69
Just meeting Below expectati expectati ons on 2 1 9 0 0 0 0 0 0 11 0 1
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:69% of the customers are satisfied with innovative ideas of company. Some are not. Company has to improve on this and develop a team for this.
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more than expectati on
Keeping you informed 1 5 2 3 4
As per expectati on 13 20 0 14 19 66
Just meeting expectati ons 0 0 0 3 4 7
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
NORTH SOUTH EAST WEST CENTR AL Total
9 12 3 3 0 27
0 0 0 0 0 0
22 32 3 20 23 10 0
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PRODUCT INFORMATION
more than As per expectati expectati on on 20 2 20 12 3 0 4 3 50 16 20 50 Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
Product Information 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:The company provides all the information to the customer about the product that is how it can be used. All technical information is given to customers.
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Product Range 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 20 2 30 2 0 3 3 14 67 17 4 28
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Company has around 800 products which are being served in textile market by them which helps the customers to buy their products and it is a ‘one stop shop’ for each customer. So the product range of the company is fair enough. Therefore, 67% of customer’s thing that product range of Clariant is more than expectation.
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Product Consistency 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 22 0 20 4 0 3 4 1 47 16 22 45
Just meeting Below expectati expectati ons on 0 0 8 0 0 0 0 0 8 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph
roduct consistency of our company is good in a way that their product quality is the same all time and there is no difference in standard of the product. Product mix of company is very proper which helps them to be at the top and have less fear of their competitors.53
Price 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 2 20 12 20 0 4 0 18 3 16 23 82
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:As company serves each of their customers as a king they also charge a price which is above market price then also the customers buy their products because of best treatment given to them. According to survey done of the top customer, it was concluded that the price is not a matter but relations does matter.
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more than expectati on
Keeping you informed 1 2 5 3 4
As per expectati on 10 24 3 16 23 76
Just meeting expectati ons 0 0 0 0 0 0
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns
NORTH SOUTH EAST WEST CENTR AL Total
12 8 0 4 0 24
0 0 0 0 0 0
22 32 3 20 23 10 0
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MARKETING SERVICES
more than As per expectati expectati on on 22 0 30 2 3 15 13 83 0 5 10 17 Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
Visit Frequency 1 5 2 3 4
NORTH SOUTH EAST WEST CENTR AL Total
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Maintaining good relation with customers is very much beneficial for a company. Company conducts many visits to all of their customers to know about their products. Meetings are conducted on monthly basis with each customers and on call feedbacks are taken from all the customers.
56
more than expectati on
Accessibility on Call 1 2 5 3 4
As per expectati on 12 27 3 17 18 77
Just meeting expectati ons 0 0 0 0 0 0
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
NORTH SOUTH EAST WEST CENTR AL Total
10 5 0 3 5 23
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Accessibility on call means easily approachable which is the most important thing. Customers get connected with distributors of company very easily through calls and they are satisfied with this. This the main “touch point” for the company to maintain their relations with customers.
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Attentiveness 1 2 5 3 4
NORTH SOUTH EAST WEST CENTR AL Total
more than As per expectati expectati on on 6 16 23 9 3 14 4 50 0 6 19 50
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 100
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NORTH
Response Quality 1 5 2 3 4
more than As per expectati expectati on on 12 10 5 0 3 4 24 27 3 17 19 76
Just meeting Below expectati expectati ons on 0 0 0 0 0 0 0 0 0 0 0 0
Very much below expectatio ns.
0 0 0 0 0 0
22 32 3 20 23 100
SOUTH EAST WEST CENTRA L Total
Interpretation of above graph:Response Quality from company to customers is very good by the company. 76% of the customers think that response quality is as per expectations. And rest 24% thing that it is more than what they expected.
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more than expectati on
Keeping you informed 1 5 2 3 4
As per expectati on 8 12 3 16 4 43
Just meeting expectati ons 0 0 0 0 0 0
Below expectati on 0 0 0 0 0 0
Very much below expectatio ns.
NORTH SOUTH EAST WEST CENTR AL Total
14 20 0 4 19 57
0 0 0 0 0 0
22 32 3 20 23 10 0
Interpretation of above graph:Keeping a customer informed is a crucial part of any relationship to be maintained. In all of the above graphs customer is being informed about each and every thing about what is going on in the company. A customer is kept informed about all the things to avoid any misunderstandings.
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OBSERVATION:1.
All customers are divided according to their sales data provided by the company. This was observed from “CUSTOMER SALES INFORMATION” a system being used in the company.
Suspects: These customers are the customers who purchase the product from the competitors and not from Clariant. Clariant wants to capture the market share of these customers.
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These customers have high potential to buy companies product but they buy the product from competitors.
Prospects
rospects are the customers who buy the product from Clariant very often but they also buy from their competitors. Inactives:Inactives are the customers who contribute to only 2% of the total sales of the company. These customers are mainly who purchase some specialty chemicals from Clariant and rest from companies competitors. Small:These customers are small players in market who purchase only from Clariant but they are small manufacturers of textiles. They contribute to only 29% of total sales of company there are about 2800 such small customers. Medium:The medium customers are the customers who contribute to around 26% of total sales there are only 69 customers. Big:27% of total sales are contributed by the big 26 customers. Company takes into account that good relations are maintained with these big customers who buy in a large quantity through distributors. Top:-62
16% of total sales are contributed by top 5 customers of company. Very good relations are maintained with these top customers as they contribute to almost 40% of the total profit of company. Lot of focus on these customers is given in this context.
2. Analyzing Customer revenue and cost data to identify current and future highvalue customers. 3. CRM has also helped Clariant to process their transactions faster as customer database is easily available and any customer’s data can be known any time, any place. 4. Very important thing for which company feels that it is worth to keep this system effectively it is to track the defection rate of each customer, which means that calculating that which customer has what problem from the company and how can it be solved in a very short time.
5. Track customer satisfaction levels through feedback forms/survey forms, which
are being used. This enables the company to know what a customer wants. Are they satisfied with the current policy of the company???
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FINDINGS:Any research project is rendered incomplete if the findings are not conveyed in the manner understandable to readers of the project document. Therefore, the presentation of finding is as important as the analysis itself. The presentation of the findings can be found in the findings, conclusion and recommendation section of the report. ? CRM promises to help company to know their customers very well.
? CRM helps the company to understand which customers to keep and which ones they should be willing to lose - and why? ? CRM also helps the decision-making unit of a company.
? CRM tools analyze and predict customers’ requirements.
? CRM helps the company to retain their customers as competitors are always there in market and play many strategies to gain market share of Clariant.
? CRM is about managing relationships more effectively so you can drive down
costs while at the same time increasing the viability of your product and service offerings.
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SUGGESTIONS:? Overall it helps in proper targeting, spending money wisely, saving time and Customer satisfaction. CRM also means automating many of business processes and accompanying Analysis.
? CRM helps a company to surmise a customer’s unspoken needs.
?
? CLARIANT should always focus on the key customers and build strong relationship with them.
? Customers should be managed properly by understanding their needs and
accordingly company should change their policies. This will help the company to generate high level of customer satisfaction with every interaction.
? CRM is a positive development for companies and for society as a whole. It will humanize relationships. It will make the market work better. It will deliver better solutions to customers.
? Company should retain top customers and should try to convert prospects and
suspects to buy the product from Clariant only by using various marketing strategies.
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CONCLUSION:Research is said to be the journey from unknown to known. This journey started with observing and identifying the various aspects of “Customer Relationship Management”. In the midway it revealed several unique strategies used at Clariant to maintain better relations and to retain customers. The strategy used was through “market campaigns”. After analyzing all the facts and data, which were collected and prepared using various tools has helped the company to know what they should do and what not to do. In other words do’s and dont’s are known to company. After “Marketing Concept” we can say that “CRM” is the other phase to attract, retain and develop customers. Each and every company is using as to maintain their customers. This also helps the company to know their prospect buyers and to target their product in market easily. Companies must wake up to the fact that they have a new boss—the customer. If they are not directly serving the customer, they had better serve someone who is. If they do not take care of their customers, someone else will. Thus we can conclude that customer is the king of the market and must be dealt with proper attention.
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BIBLIOGRAPHY:•
Some presentations of company. Marketing management(13th edition) – Philip Kotler.
•
• Customer relationship management— A Strategic Perspective-www.ibef.org G Shainesh and Jagdish Sheth.
•
• Customer Relationship Management is not an option — John Woods.
•
CRM – Prabhat Jain.
• Marketing Research – G.C.Beri www.clariant.com
•
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ANNEXURE:
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doc_860828396.doc