final ti project

8/6/2019 Final Ti Project

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A STUDY ON THE CUSTOMER RELATIONSHIP MANGEMENT

AT TUBE PRODUCTS OF INDIA CHENNAI.

Submitted By

Mr.P.DINESH

(Reg. No. 1029152)

Of

Department of Management Studies

VEL TECH MULTI TECH Dr. RANGARAJAN Dr. SAKUNTHALA

ENGINEERING COLLEGE

(ACCREDITED BY NBA & ISO 9001:2008 CERTIFIED INSTITUTION)

(Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY)

Avadi, Chennai-600 062

A PROJECT REPORT

Submitted To

Faculty of Management Studies

In Partial Fulfilment of the Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY OF TECHNOLOGY, CHENNAI 25

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JULY 20

VEL TECH MULTITECH DR.RANGARAJAN DR.SAKUNTHALA

ENGINEERING COLLEGE

(ACCREDITED BY NBA & ISO 9001:2000CERTIFIED INSTITUTION)

(Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY)

Avadi, Chennai-600 062

DEPARTMENT OF MANAGEMENT STUDIES

_____________________________________________________________________________

Date: ...../../2011

CERTIFICATE

Certified that the project report titled A STUDY ON THE CUSTOMER

RELATIONSHIP MANAGEMENT has been conducted in TUBE PRODUCTS OF

INDIA,CHENNAI is a bonafide project work of P.DINESH, (Reg. No.1029152) who

carried out research under my supervision certified further, that to the best of my

knowledge the work reported here in does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier occasion

on this or any other candidate.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

PRINCIPAL

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INTERNAL EXAMINER EXTERNAL EXAMINER

ACKNOWLEDGEMENT

First of all I take this opportunity to express my gratitude to our

Chairman Prof.Dr.R.Rangarajan, B.E (Elect), B.E (Mech), and M.S (Auto) Ph.D, and to

the principal Dr.Siddhappa Naidu, M.E., Ph.D, of Vel Tech Multi Tech Dr.Rangarajan

Dr.Sakunthala Engineering College, Avadi.

I would like to extend my sincere thanks to HOD & My Internal Guide

Mr.Sathyanarayanan, MBA, (Ph.D), Assisstant Professor, Dept. Of Management Studies

and all my faculties.

I express my sincere gratitude from the depth of my heart to my

respectful GM (OPERATIONS) Mr. RAVIKUMAR and Mr.A.ARUL (MKG MGR) of

TUBE PRODUCTS OF INDIA, Chennai.

I am grateful to My Family Members for the constant love,

encouragement and financial support throughout my studies.

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(Mr.P.DINESH)

TABLE OF CONTENTS

CHAPTERNO

CONTENTS PAGE NO

List of tables 5

List of figures 6

List of abbreviations 7

Abstract 8

1

INTRODUCTION 9

1.1 Industry Profile 17

1.2 Company Profile 18

1.3 Product profile 19

1.4 Statement of the Problem 22

1.5 Objectives of the Study 22

1.6 Scope of the Study 23

1.7 Limitations 23

2LITERATURE SURVEY 24

2.1 Review of Literature 24

3

RESEARCH METHODOLOGY 28

3.1 Methods of sampling 29

3.2 Methods of data collection 32

3.3 Tools for Analysis 34

4

DATA ANALYSIS AND INTERPRETATION

4.1 Production facility data

and Inferences

4.2 Inventory management data

4.3 Information management data

4.4 Sourcing decisions data

5 SUMMARY OF FINDINGS AND SUGGESTIONS

5.1 Summary of Findings 40

5.2 Suggestions & Recommendations 42

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5.3 Conclusion 43

APPENDIX 44

Bibliography 46

LIST OF TABLES

S.NO NAME OF THE TABLE PAGE NO

1 EVOLUTION OF CRM 12

2 FEATURES AND

BENEFITS OF BSA

19

3 FEATURES AND

BENEFITS OF

HERCULES

20

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LIST OF FIGURES

S. No. Name of the figure Page No.

1 CUSTOMER RELATIONSHIP

MANAGEMENT

10

2 HERCULES 19

3 BSA 20

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LIST OF ABBREVATIONS

CRM - Customer Relationship Management

AMA - Automotive Manufacture Association

TII - Tubes Investments of India

TPI - Tubes Product of India

AFML - Aero Foam Metals Limited

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ABSTRACT

Customer relationship management (CRM) is a widely-implemented strategy

for managing a companys interactions with customers, clients and sales prospects. It involves

using technology to organize, automate, and synchronize business processes principally sales

activities, but also those for marketing, customer service, and technical support. The overall

goals are to find, attract, and win new clients, nurture and retain those the company already has,

entice former clients back into the fold, and reduce the costs of marketing and client service.

Customer relationship management describes a company-wide business strategy including

customer-interface departments as well as other departments. Measuring and valuing customer

relationships is critical to implementing this strategy.

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http://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_service


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CHAPTER 1

INTRODUCTION

CRM, or Customer relationship management, is a number of strategies and

technologies that are used to build stronger relationships between companies and their

customers. A company will store information that is related to their customers, and they will

spend time analyzing it so that it can be used for this purpose.It is commonly used by

corporations, and they will focus on maintaining a strong relationship with their clients.

Customer support is directly connected to CRM. If a company fails to provide quality customer

support, they have also failed with their CRM system. When a customer makes complaints, they

must be handled quickly and efficiently. The company should also seek to make sure those

mistakes are not repeated. When sales are made, they should be tracked so that the company can

analyze them from various aspects. It is also important to understand the architecture of

Customer relationship management. The architecture of CRM can be broken down into three

categories, and these are collaborative, operational, and analytical. The collaborative aspect of

CRM deals with communication between companies and their clients.

Customer relationship management could be better defined as being a methodology, an approach

that a company will use to achieve their goals. It should be directly connected to the philosophy

of the company. It must guide all of its policies, and it must be an important part of customer

service and marketing. If this is not done, the CRM system will become a failure. There are a

number of things the ideal CRM system should have. It should allow the company to find the

factors that interest their customers the most. A company must realize that it is impossible for

them to succeed if they do not cater to the desires and needs of their customers. Customerrelationship management is a powerful system that will allow them to do this.

CUSTOMER RELATIONSHIP MANAGEMENT:

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The concept of customers relationship marketing (CRM) has stemmed up

from problem of traditional marketing. CRM recognizes the concern for both traditional function

of marketing and its scope with a goal of developing a cross functional, coordinated focus on

customers that is to reorient the entire business to face the market.

CUSTOMER RELATIONSHIP MANAGEMENT

The focus of marketing has changed from acquiring new customers to retaining old ones. This

requires a different mindset and a different and a new set of tools. A good thought experiments

for an executive audience is to ask them how much they spend or focus on acquisition versus

retention activities. While it is difficult to perfectly distinguish the two activities from each other,

the answer is usually, that acquisition dominates retention.

The top four reasons for implementing CRM are:

1.Gaining customer confidence and loyalty

2.Providing personalized service to customers

3.Acquiring better knowledge of customers and their buying habits

4.Differentiating themselves from the competition

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CRM changes all of this and represents a continuing evolution in managing front

office operations. With CRM, traditional departmental applications for sales, marketing and

customer service are consolidated into a single unified system capable of managing the entire

customer life cycle. This approach allows employees throughout an organization to have

immediate access to a complete profile of important customer information. Organizations who

are implementing CRM solutions feel confident that providing access to this level of information

will assist their sales and support staff in better understanding the needs and buying patterns of

their customers.

What exactly is the definition of Customer Relationship Management? Ask a

dozen professionals, get a dozen different definitions. Heres a general overview:

CRM is used to learn more about your key customer needs in order to develop a

stronger relationship with them.

Customer Relationship Management can be defined as company activities related

to increasing the customer base by acquiring new customers and meeting the needs of the

existing customers. CRM is about building partnerships with your customers. It uses internal

business processes from Sales, Customer Service and Marketing.

The philosophy of CRM is the recognition that your long-term relationships with

your customers can be one of the most important assets of an organization, providing

competitive advantage and improved profitability

The most important part of CRM is the customer-focus.

According to one industry view, CRM consists of: Helping an enterprise to

enable its marketing departments to identify and target their best customers, manage marketing

campaigns with clear goals and objectives, and generate quality leads for the sales team.

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

by optimizing information shared by multiple employees, and streamlining existing processes

(for example, taking orders using mobile devices)

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Allowing the formation of individualized relationships with customers, with the

aim of improving customer satisfaction and maximizing profits; identifying the most

profitable customers and providing them the highest level of service.

Providing employees with the information and processes necessary to know theircustomers, understand their needs, and effectively build relationships between the company,

its customer base, and distribution partners.

CRM uses technology, strategic planning and personal marketing techniques to

build a relationship that increases profit margins and productivity. It uses a business strategy that

puts the customer at the core of a companys processes and practices. It requires this customer

focused business philosophy to support effective sales, marketing, and customer service and

order fulfillment.

The following table suggests the evolution of Customers Relationship Marketing:

Period Focus Area

1950s

1960s

1970s

1980s

1990s

Customer Good Marketing

Industrial Goods Marketing

Marketing of Non-Profit Organization or Societal

Marketing

Services Marketing

Customers Relations Marketing

Table 1: evolution of CRM

HISTORY OF CRM

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Customer Relationship Management (CRM) is one of those magnificent

concepts that swept the business world in the 1990s with the promise of forever changing the

way businesses small and large interacted with their customer bases. In the short term, however,

it proved to be an unwieldy process that was better in theory than in practice for a variety of

reasons. First among these was that it was simply so difficult and expensive to track and keep the

high volume of records needed accurately and constantly update them.

In the last several years, however, newer software systems and advanced tracking features have

vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the

price of newer, more customizable Internet solutions have hit the marketplace; competition has

driven the prices down so that even relatively small businesses are reaping the benefits of some

custom CRM programs.

In the beginning

The 1980s saw the emergence of database marketing, which was simply a catch phrase to define

the practice of setting up customer service groups to speak individually to all of a companys

customers.

In the case of larger, key clients it was a valuable tool for keeping the lines of communication

open and tailoring service to the clients needs. In the case of smaller clients, however, it tended

to provide repetitive, survey-like information that cluttered databases and didnt provide much

insight. As companies began tracking database information, they realized that the bare bones

were all that was needed in most cases: what they buy regularly, what they spend, what they do.

Advances in the 1990s

In the 1990s companies began to improve on Customer Relationship Management by making it

more of a two-way street. Instead of simply gathering data for their own use, they began giving

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back to their customers not only in terms of the obvious goal of improved customer service, but

in incentives, gifts and other perks for customer loyalty.

This was the beginning of the now familiar frequent flyer programs, bonus points on credit cards

and a host of other resources that are based on CRM tracking of customer activity and spending

patterns. CRM was now being used as a way to increase sales passively as well as through active

improvement of customer service.

WHO IS A CUSTOMER?

A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or

potential buyer or user of theproducts of an individual ororganization, called the supplier, seller,

orvendor. This is typically throughpurchasing orrentinggoods orservices. However, in certain

contexts, the term customer also includes by extension any entity that uses or experiences the

services of another. A customer may also be a viewer of the product or service that is being sold

despite deciding not to buy them. The general distinction between a customerand a clientis that

a customer purchasesproducts, whereas a client purchasesservices.

The word derives from "custom," meaning "habit"; a customer was someone who frequented a

particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than

elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her

"custom," meaning expected purchases in the future. The slogans "the customer is king" or "the

customer is god" or "the customer is always right" indicate the importance of customers to

businesses although the last expression is sometimes used ironically. However, "customer" also

has a more generalized meaning as in customer service and a less commercialized meaning in

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http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Rentinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Rentinghttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customer_service


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not-for-profit areas. To avoid unwanted implications in some areas such as government services,

community services, and education, the term "customer" is sometimes substituted by words such

as "constituent" or "stakeholder".

This is done to address concerns that the word "customer" implies a narrowly commercial

relationship involving the purchase of products and services.

CUSTOMERS NEEDS FROM A PRODUCT

With few exceptions, every job people need or want to do has a social, a

functional, and an emotional dimension. If marketers understand each of these dimensions, then

they can design a product that's precisely targeted to the job. In other words, the job, not the

customer, is the fundamental unit of analysis for a marketer who hopes to develop products that

customers will buy.

To see why, consider one fast-food restaurant's effort to improve sales of its milk shakes. (In this

example, both the company and the product have been disguised.) Its marketers first defined the

market segment by productmilk shakesand then segmented it further by profiling the

demographic and personality characteristics of those customers who frequently bought milk

shakes. Next, they invited people who fit this profile to evaluate whether making the shakes

thicker, chocolatier, cheaper, or chunkier would satisfy them better. The panelists gave clear

feedback, but the consequent improvements to the product had no impact on sales.

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Requirements of customers from a product

1. Price

2. Quality

3. Quantity

4. Brand image

5. Competitors

BENEFITS OF CRM

A CRM system may be chosen because it is thought to provide the following advantages:

1. Quality and efficiency

2. Decrease in overall

3. Decision support

4. Enterprise agility

5. Customer Attention

INDUSTRY PROFILE

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MURUGAPPA GROUP

Headquartered in Chennai, the Rs.7300 plus core Murugappa Group is

India's leading business conglomerate, which fosters an environment of professionalism for its

strong workforce of 28,000 employees. The group has 29 registered companies, which are

market leaders in diverse areas of business viz. engineering, abrasives, finance, general

insurance, sanitary ware, cycle, sugar farm inputs, fertilizers, plantations, bio products and

nutraceuticals. The Group has manufacturing units in 12 states.

The Group has forged strong joint venture alliances with leading international

companies like Roca, Cargill, Cerdak, DBS Bank, Mitsui Sumitomo and Group Chimique

Tunisian and has consolidated its status as one of the fastest growing diversified business house

in India. They do not market their brands for increasing the sales of their products. They cleverly

campaign for Cycling and its benefits and thus indirectly get their products sold out. Really good

marketing strategy. They manages their factory and plants in and around India without any

problems from their workers in the form of strike and all. For e.g. There was a strike in the year

1978 after that there is no such yet, really a good Human Resourcing strategy.

COMPANY PROFILE

TUBE PRODUCTS OF INDIA

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TI Cycles of India is a part of Tube Investments of India (TII), a flagship

company of the Rs.7300 plus crore conglomerates Murugappa Group. The company which

started in 1949 has been at the forefront of innovations and a pioneer in the market of cycles. TI

is the second largest manufacturer of bicycles in India, marketing top brands like Hercules and

BSA.

With a network of 2500 plus dealers and backed by a strategic outsourcing policy, the

company has a nationwide presence. It has 3 fully functioning plants across India at Chennai,

Nasik and Noida and 7 regional offices situated across the country.

The company is a market leader in the value-added special segment, with a 50 percent

market share. TI Cycles is an exporter to many a region across the globe Europe, South East Asia

and Africa, being some of them. At present, TI has fourteen BSA GO stores across India.TPI is

the preferred supplier of precision tubes, Electric Resistance Welded (ERW) and Cold Drawn

Welded (CDW), to major automotive companies in India and abroad. TPI is India's undisputed

market leader in CDW tubes to the automotive industry. It has also significant market presence

in power plants, boiler, textile machinery, general engineering. It is the Market leader in

Telescopic Front Fork Inner tubes and Cylinder bore tubes for shock absorber and gas spring

applications, Propeller shaft tubes for Automotive segment. Other Specialty products include

Rear Axle Tubes, Side Impact Beams, Tie Rods, Drag links, Heavy thick steering shafts.

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PRODUCTPROFILE

Our first brand is still as young as ever, signifying strength and passion. It is rugged, robust and

is for the rough and tough. Hercules stands for a unique pride of possession.Hercules stands for

strength and speed. The various models of Hercules MTB are pioneers in the bicycles category

catering to the youth. The Hercules Popular brand of "standard" bicycle is a market leader.

Hercules is the flag ship brand of the TI Cycles portfolio. This brand of ours is still as young as

ever - signifying strength and passion.

Steel Frame Look & Appeal

360 degree Rotatable

Handle Bar

To enhance the

experience during skills

Front & Rear Stunt pegs To perform stunts with

greater accuracy

Tires 20X2.125 Nylon

tires with Butyl Tube

For better Grip while

performing Stunts

Alloy Brake Levers Sturdy & Rust Free

Front & Rear V-Brake For effective braking

Quick release on Seat

tube

Adjusting height for

better posture

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It signifies the joy of cycling. Excitement and comfort go hand in hand with BSA. Today, BSA is

an intrinsic part of the Indian family with models for kids, teens and adults.BSA stands for

style, fun and comfort. There are several models catering to consumer segments ranging from

kids, ladies and other premium end customers. BSA Ladybird, BSA SLR, BSA Champ are

trendsetters and icons in their respective categories.BSA is another Flagship Brand of TI Cycles.BSA stands for Birmingham Small Arms. This brand signifies the joys of cycling, fun and

excitement.

Lower Step thru frame For easy mount &

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dismount

Wide comfortable saddle

with spring

For comfortable ride

Longer stronger Carrier For Load Carrying

Skirt Guard For safety

Large Wire Mesh Basket To carry extra stuff

STATEMENT OF PROBLEM

Measuring customer relationship management is a relatively new

concept to many companies that have been focused exclusively on income statements and

balance sheets. Companies now recognize that the new global economy has changed things

forever. Increased competition, crowded markets with little product differentiation and years of

continual sales growth followed by two decades of flattened sales curves have indicated to

today's sharp competitors that their focus must change. This study has been undertaken to study

the relationship between customers and the company.

OBJECTIVES OF STUDY

Primary objective:

To study of customer relationship management in the tube investment of

India.

Secondary objective:

1. To identify the Customer Relationship Management (CRM) of tubes product of India

for cycles

2. To study the advantages of Customer Relationship Management in marketing Services.

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3. To simplify marketing and sales process of cycles.

4. To provide better customer services.

5. To discover new customers and increase customer revenue of cycles.

SCOPE OF STUDY:

This application can be implementing in those organizations where there is need

for automation of sales work. This application minimize manual work in the organization so

work load on organization will decrease and efficiency and effectiveness of the organization will

increase. This application helps in reducing redundancy of the data and provides security so that

unauthorized person cannot access the application.This application provide facility to analyze

data of customer, sale and complains. This can be highly useful in planning marketing and sales

strategy of the organization. It attempts to integrate and automate the various customer- serving

processes within a company. CRM is a strategy used to learn more about customers' needs and

behaviors in order to develop stronger relationships with them. Good customer relationships are

at the heart of business success. So this application will help in building good customer relation

with customer.

With the help of this project, the organization will be able to managing customer

data in effective way. Proper management of sales and customer data will provide facility of

obtaining customer details time to time on the basis of which organization can make

marketing and sales plan effectively.

LIMITATION OF STUDY

1. The sample size is limits to 100 respondents. The solution obtained may not be accurate.

2. Incorrect and misleading responses given by the respondents to have a impact of thestudy.

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3. The entire study based on the information provided by the respondents which may be

biased.

4.Time constraints are another limitation to this study.

5. Lack of response from the response from the respondents.

CHAPTER 2

REVIEW OF LITERATURE

Many studies and researches have been conducted relating to CRM by various researches andsome of them have been discussed below:

Lovelock (1996) The services sector of the economy is going through a period of almost

revolutionary properties in which established ways of doing business continued to be shunted

aside. Around the world, innovative new offering, new standards of services succeeded in the

market where established competition has failed to please todays demanding customer.

As per Mc Dowell (2000), CRM has become full-fledged subject of importance today. TheEight Ps Product, place, price, promotion, People, process and Physical Evidence and Pace-

helping meeting customer standards and Expectation thus enhancing quality of Services and

Brand loyalty. Parker (1958), in his DBA dissertation visualized the importance of Customer

Services. Johanssons Dissertation in 1969, asked the question Are goods and services

different? And launched the goods versus services debate.

The Era of Pre 1980s has been defined as the Revolution of Services as stated by Regan

(1963). During this period the Marketing was at infant stage and lot of things was to cleared. He

expressed now the marketing through his traveled a long distance and the concept of services

marketing has come into existence. He described the United States as well advance into device

revolution that would significantly change consumer behavior.

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Berry (1985, 1988) suggested that the criteria used by customers are important in moulding

their expectations, precipitations and hence satisfaction, fir ten dimensions, these are Tangibility,

reliability, and responsiveness, communication, Credibility, security, Competence, Courtesy,

Understanding and access. Later the author condensed it to five categories viz. Tangibility,

Reliability, responsiveness, Assurance and Empathy Gronross added the sixth dimension i.e.

recovery.

Lewis and Smith (1999) investigated the expectation and precipitation of banks and building

society retail customers with regard to 39 elements of services divided into 4 dimensions as

Physical features, reliability, characteristics of the staff and responsiveness towards the

customers.

Ganesan (1994) suggested that long-term orientation in buyer-seller relationship is important,

as it is the function of two things: mutual dependence and trust between them. Both these

parameters help in bonding of buyer and seller thus improving their relationship.

Stewart (1998) suggested that as the customer relationship marketing or management is given

more stress in the recent past but much emphasis is required on why customers exit? Policies,

strategies are to frame in order to avoid the situation.

Seethapathi and Karuna (1999) discussed that only those banks would survive which would

give quality services to the customers and believe in the long term relationship management.

Vyas (1999) is of the view that customer satisfaction is the core competence tool for long-

term relationship and profitability. He expressed the view that this would be possible only if the

services provided to the customers are of highest quality.

Aggarwal (2000) observed that the customer is the central figure in the relationship marketing

as his loyalty can be commanded towards the particular brand of service.

A.Purushothaman (2002) concluded that relationship building leads to customer loyalty,

which, in turn, helps in retention of customers. Some highly successful companies use already

exiting strong relationships to cultivate and strengthen new ones.

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Chris Lawer (2004) observed that the organizations who identify opportunities for improving

customer relationships and who co-ordinate and measure change in all customer impact zones

will have a greater chance of success.

Alexander Krasnikovetal , (2009):This study examines the impact of CRM

implementation on two metrics of firm performance operational (cost) efficiency andthe ability of firms to generate profits (profit efficiency)using a large samples of

products.

The authors use stochastic frontier analysis to estimate cost and profit efficiencies and

employ hierarchical linear modeling to assess the effect of CRM implementation on cost

and profit efficiencies.

They find that CRM implementation is associated with a decline in cost efficiency but

an increase in profit efficiency. A firm-level factor, CRM commitment, reduces the

negative effect of CRM implementation on cost efficiency. The authors also find that

two adoption- related factors, time of adoption and time since adoption, influence the

relationship between CRM implementation and cost and profit efficiencies

Ismael D.Tabije,(2004) :Stated that better understanding of the customer is imperative

in improving customer relationship. You should know and collect all available

formation about the customers to be able to serve them well. Your customer database

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should be all inclusive and contain maximum information about their birthdays,

exclusive events and even news updates about their promotions at their workplace. If

you have some famous customers whose names appear in newspapers off and on, then

you should keep the cuttings displayed at your store or place of business.

CHAPTER 3

RESEARCH METHODOLOGY

The research methodology for the project is specified as follows

Primary Objective:

Assessment of customer relationship management towards cycles with

special reference to TPI.This was done by interacting with people through the medium

of Questionnaires and Direct interviews being taken in some cases. The satisfaction

greatly depends on the quality of service, the interests being provided on product and

the cost.The project helped in developing an insight about the Actual level of

satisfaction and the Expected level of satisfaction. The various grievances that came

forwarded during the survey and the various things which the customers wanted the

industry to incorporate in its structure is attached in the report afterwards in the form of

Recommendations. Through the project, the competitive strategies being followed by

other industry were also analyzed.

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define

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research as a scientific and systematic search for pertinent information on a specific topic. In

fact, research is an art of scientific investigation.

3.1 RESEARCH DESIGN

Research design is defined as A plan structure and strategy of investigation conceived

so as to obtain answer to research question and control variables.

3.2 SAMPLING:

A Sampling is a part of the total population. It can be an individual element or a group of

elements selected from the population. Although it is a subset, it is representative of the

population and suitable for research in terms of cost, convenience, and time. The sample group

can be selected based on a probability or a non probability approach. A sample usually consists

of various units of the population. The size of the sample is represented by n.

Sampling is the act, process, or technique of selecting a representative part of a population for

the purpose of determining the characteristics of the whole population. In other words, the

process of selecting a sample from a population using special sampling techniques called

sampling. It should be ensured in the sampling process itself that the sample selected is

representative of the population.

METHODS OF SAMPLING:

Random Sampling

The first statistical sampling method is simple random sampling. In this method, each item in the

population has the same probability of being selected as part of the sample as any other item.

For example, a tester could randomly select 5 inputs to a test case from the population of all

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possible valid inputs within a range of 1-100 to use during test execution, To do this the tester

could use a random number generator or simply put each number from 1-100 on a slip of paper

in a hat, mixing them up and drawing out 5 numbers. Random sampling can be done with or

without replacement. If it is done without replacement, an item is not returned to the population

after it is selected and thus can only occur once in the sample.

Systematic Sampling

Systematic sampling is another statistical sampling method. In this method, every nth element

from the list is selected as the sample, starting with a sample element n randomly selected from

the first k elements. Care must be taken when using systematic sampling to ensure that the

original population list has not been ordered in a way that introduces any non-random factors

into the sampling.

Stratified sampling

The statistical sampling method called stratified sampling is used when representatives from

each subgroup within the population need to be represented in the sample. The first step in

stratified sampling is to divide the population into subgroups (strata) based on mutually

exclusive criteria.

Cluster Sampling

The fourth statistical sampling method is called cluster sampling, also called block sampling. In

cluster sampling, the population that is being sampled is divided into groups called clusters.

Instead of these subgroups being homogeneous based on a selected criteria as in stratified

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sampling, a cluster is as heterogeneous as possible to matching the population. A random sample

is then taken from within one or more selected clusters. For example, if an organization has 30

small projects currently under development, an auditor looking for compliance to the coding

standard might use cluster sampling to randomly select 4 of those projects as representatives for

the audit and then randomly sample code modules for auditing from just those 4 projects. Cluster

sampling can tell us a lot about that particular cluster, but unless the clusters are selected

randomly and a lot of clusters are sampled, generalizations cannot always be made about the

entire population.

Judgmental Sampling

Another non-statistical sampling method is judgmental sampling. In judgmental sampling, the

person doing the sample uses his/her knowledge or experience to select the items to be sampled.

For example, based on experience, an auditor may know which types of items are more apt to

have nonconformances or which types of items have had problems in the past or which items

are a higher risk to the organization. In another example, the acceptance tester might select test

cases that exercise the most complex features, mission critical functions or most used sections of

the software.

From the above sampling methods, I have used simple random sampling.

SAMPLE DESIGN:

Sample element : past customers

Sample size : 100

Sample media : questionnaire.

DATA COLLECTION:

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The data collection pertaining to the study involves on the basis of primary data and

secondary data.

PRIMARY DATA

The primary data have been collected from customers by personal interview by selecting

consumers belonging to business, professional, private and government employee.

SECONDARY DATA

The secondary data is undertaken only among the sales and service department within the

organization and also collected from brochures of the company, books and various journals.

SAMPLING SIZE

Sample studies were selected from the sampling unit. The estimated total samplesize is 100 in Chennai.

SAMPLE METHOD

In this study the samples were drawn using simple random method.

STATISTICAL TOOLS

The following statistical techniques have been used for the study

1. Percentage analysis

2. Chi-square test

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1. Percentage analysis:

Percentage method refers to a specified kind which is used in making comparison

between two or more series of data. Percentages are based on descriptive relationship. It

compares the relative items. Since the percentage reduces everything to a common base and

thereby allow meaning comparison.

Percentage = Number of respondents x 100

Total no of respondents

2. CHI-SQUARE TEST:

The chi-square test, written as 2 test, is a useful measure of comparing

experimentally obtained results with those expected theoretically and based on the hypothesis. It

is used as a test statistics in testing a hypothesis that provides a set of theoretical frequencies with

which observed frequencies are compared. In general chi-square test is applied to those problems

in which we study whether the frequency with which a given event has occurred, is significantly

different from the one as expected theoretically. The measure of chi-square enables us to find out

the degree of discrepancy between observed frequencies and theoretical frequencies and thus to

determine whether the discrepancy so obtained between observed frequencies and theoretical

frequencies is due to error of sampling or due to chance.. The 2 test was first used in testing

statisticalhypothesis by Karl Pearson in the year 1900. It is defined as

2 = (Oi Ei)2/Ei

Where Oi = observed frequency of ith event

Ei = Expected frequency of ith event.

DEGREES OF FREEDOM

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The number of data that are given in the form of a series of variables in a row or column

or the number of frequencies that are put in cells in a contingency table, which can be calculated

independently is called the degrees of freedom and is denoted by v.

Case I If the data is given in the form of a series of variables in a row or column, then the degree

of freedom = (number of items in the series) 1, i.e., v = n 1, where n is the number in the

series in a row or column.

Case II When the number of frequencies are put in cells in a contingency table, the degrees of

freedom will be the product of (number of rows less one) and the (number of columns less one)

i.e., v = (R-1) (C-1), where R is the number of rows and C is the number of columns.

Conditions for applying the CHI-SQUARE test

1. Each of the observations making up the samples for this test should be independent of each

other.

2. The expected frequency of any item or cell should not be less than 5. If it is less than 5, then

frequencies taking from the adjacent items or cells are pooled together in order to make it 5 or

more than 3. The total number of observations used in this test must be large i. e., n 30.

4. This test is used only for drawing inferences by testing hypothesis. It cannot be used for

estimation of parameter or any other value.

5. It is wholly dependent on the degrees of freedom.

6. The frequencies used in 2 test should be absolute and not relative in terms.

7. The observations collected for 2 test should be on random basis of sampling.

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Working rule:

Step 1: Set up the Null Hypothesis H0 : No association exists between the attributes.

Alternate Hypothesis H1 : An association exists between the attributes.

Step 2: Calculate the expected frequency E corresponding to each cell by the formula

Eij = Ri * Cj/n

Where, Ri = sum total of the row in which Eij is lying

Cj = sum total of the columns in which Eij is lying

n = total sample size.

Step 3: Calculate 2 statistic by the formula 2 = (Oi Ei)2/Ei.

The characteristics of this distribution are completely defined by the number of degrees of

freedom v which is given by v = (R-1) (C-1)

Where R = number of rows and C = number of columns in the contingency table.

Step 4: Find from the table the value of 2 for a given value of the level of significance and for

the degrees of freedom v, calculated in STEP 2

If no value for is mentioned, then table = 0.05.

Step 5: Compare the computed value of 2 with the tabled value of 2 found in step 4.

(a) If calculated value of 2 < tabulated value of 2 then accept null hypothesis H0.

(b) If calculated value of 2 > tabulated value of 2 then reject null hypothesis H0 and

accept the alternate hypothesis H1.

Bar diagram

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This diagram consists of a series of rectangular bars standing on a common base. The

length of the bars is proportional to their magnitude. The comparison among the bars is based on

lengths. There are three types of bar diagram.

Simple bar diagram

Multiple bar diagram

Component bar diagram

Pie diagram

It is a circle divided into a number of sectors represents the values of the data. The

area of the sectors is proportional to the values of the components. It is highly useful to know

how the given data is distributed.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

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TABLE 1

CUSTOMERS OF TPI

S. No Customers No of respondent percentage

1 Yes 74 74

2 No 26 26

Total 100 100

Source: primary data

Inference:

The table shows that, 74% of the respondents are customer of tpi and 26% of the

respondent are not customer of tpi.

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Table 2

AGE FACTOR

S.No Age No of respondent percentage

1 Below 25 38 38

2 26-35 31 31

3 36-45 6 6

4 Above 46 25 25

Total 100 100


Inference:

The above table shows that 38% of the respondent comes under the age of below 25, 31%

respondent had 26-35, 25% respondent had above 46 and remaining comes under 36-45 age.

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Table 3

VALUE ADDED SERVICE

S. No Comfortable level No of respondent percentage

1 Strongly Agree 20 20

2 Agree 27 27

3 Neutral 8 8

4 Disagree 35 35

5 Strongly Disagree 10 10

Total 100 100


Interference:

Above table state that 35% of the respondents feels disagree and 27% of the

respondents feels agree.

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TABLE 4

QUALITY OF SERVICE


1 Satisfied 37 37

2 Highly Satisfied 22 22

3 Moderate 14 14

4 Dissatisfied 19 19

5 Highly Dissatisfied 8 8

Total 100 100


Interference:

Above table state that 37% of the respondents feels satisfied and 22% of the

respondents feels highly satisfied.

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TABLE 5

CUSTOMERS COMPLAINT



2 Agree 37 37

3 Neutral 0 0

4 Disagree 15 15


Total 100 100


Interference:

Above table state that 48% of the respondents feels Strongly Agree and 37% of the

respondents feels Agree.

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TABLE 6

LEVEL OF SATISFACTION



2 Satisfied 24 24

3 Moderate 7 7



Total 100 100


Interference:

Above table state that 35% of the respondents feels highly satisfied and 24% of the

respondents feels satisfied.

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TABLE 7

RECOMMEND TO BUY THE PRODUCT

S. No Recommendation No of respondent Percentage

1 Yes 86 86

2 No 14 14

Total 100 100


Inference:

The table shows that, 86% of the respondents feel that they recommend to buy the

product and 14% of the respondents feel would not recommend the product.

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TABLE 8

RATE OF PRODUCT

S. No Comfortable level No of respondent Percentage

1 Excellent 58 58

2 Good 34 34

3 Neither good nor poor 0 0

4 poor 8 8

5 very poor 0 0

Total 100 100


Interference:

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Above table state that 58% of the respondents feels excellent and 34% of the

respondents feels good.

TABLE 9

RATE FOR THE PRODUCT

S. No RATE

AFFORDABLE

No of respondent Percentage

1 Yes 89 89

2 No 11 11

Total 100 100


Inference:

The table shows that, 89% of the respondents feel that the product rate is affordable and

11% of the respondents feel not affordable.

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TABLE 10

BRAND LOYALTY OF PRODUCT


1 Excellent 26 26

2 Good 32 32

3 Neither good nor

poor

10 10

4 poor 23 23

5 very poor 9 9

Total 100 100


Interference:

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Above table state that 32% of the respondents feels good and 26% of the respondents

feels excellent.

TABLE 11

SPECIAL SERVICE CAUSED YOUR SATISFACTION


1 Satisfied 23 23


3 Moderate 5 5



Total 100 100


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Interference:

Above table state that 37% of the respondents feels Dissatisfied on special service and

23% of the respondents feels satisfied.

TABLE 12

MODE OF PURCHASE

S. No Mode of purchase No of respondent percentage

1 Net cash 72 72

2 Credit card 8 8

3 Debit card 20 20

Total 100 100


Inference:

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Above table state that 72% of the respondent purchased through net cash and 20% of

respondent purchased through debit card.

respondent purchased through loan.

TABLE 13

VISITED OUR WEBSITE

S. No TIMES No of respondent percentage

1 1-2 times 36 36

2 2-3 times 12 12

3 Not yet 52 52

Total 100 100


Inference:

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Above table state that 52% of the respondent have not visited the websites 36% of the

respondents have visited 1-2 times.

TABLE 14

NEED FOR MORE SERVICE



2 Agree 19 19

3 Neutral 13 13

4 Disagree 18 18


Total 100 100


Interference:

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Above table state that 38% of the respondents feels Strongly Agree and 19% of the

respondents feels agree.

TABLE 15

MOST IMPORTANT

S. No FACTORS No of respondent percentage

1 Good product 57 57

2 friendly 14 14

3 Fast service 29 29

Total 100 100


Inference:

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The table shows that, 57% of the respondent needed good product, 29% of the respondent

needed fast service.

ANNEXURE

1. Are you a customer of tpi ?

a) Yes b) No

2. Age of the customers?

a) Below 25 b) 26-35 c) 36-45 d) Above 45

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3.Does tpi offers value added services?

a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

4. Quality of service of the company?

a) Satisfied b) Highly Satisfied c) Moderate d) Dissatisfied e) Highly Dissatisfied

5. Response for the complaint is very quick?


6. Rate of level of satisfaction with the product?

a) Highly Satisfied b) Satisfied c) Moderate d) Dissatisfied e) Highly Dissatisfied

7. Would you recommend this product to others?

a) Yes b) No

8. How will you rate this product?

a) Excellent b) Good c) Neither Good Nor Poor d) Poor e)Very Poor

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9. Is the rates for the product is affordable?

a) Yes b) No

10. Your brand loyalty for the product?

a) Excellent b) Good c) Neither Good Nor Poor d) Poor e) Very Poor

11. Any special service offered to you wish caused your satisfaction?

a) Satisfied b) Highly Satisfied c) Moderate d) Dissatisfied e) Highly Dissatisfied

12. Mode of payment of purchasing cycles?

a) Net Cash b) Credit Card c) Debit Card

13. How many times you visited our website?

a) 1-2times b) 2-3times c) Not Yet

14.Does you need more services offered by the company?


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15. What is most important?

a) Good Product b) Friendly c) Fast Service

CHAPTER 5

Summary of Findings

From the study it is found 74% are customers of tpi.

38% of the respondents are comes under the age of 25 years and 31% of the respondents

are comes under the age group between 26-35 years.

52% of the respondents not visited the company website.

From the study it is found 58% respondents are satisfied with the rate of product.

From the study it is found most of them purchased through cash.

From the study it is found customers are satisfied with the sales person explanation about

the cycle features.

From the study it is found customers are comfortable with the sales personnel.

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Majority of the respondents feel have to offer more service to the customers.

Many of the customers say the rate of product is affordable.

37% of the respondents satisfied with the quality of service.

From the study it was found that majority of the customers are recommending buying the

product.

From the study it was found that 32% customers says brand loyalty of product is good.

Majority of the customers satisfied with the service.

From the study it was found that majority of the customers getting feedback regarding the

complaints.

57% of the respondents feels need a good product.

suggestion

The following suggestions can be made for better development of the company on

cycles:

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Many of the customers felt that the value added services are provided at more cost. Hence

the company can afford value added services at reasonable rate for customer satisfaction.

The company can provide Special services to customer and provide more special offers to

improve customer relationship.

The websites can be made attractive to yield the attention of the customers and other

public.

From this overall study, it is noticed that a good relationship exist between the customers

and the company. Therefore the company can proceed with the present state.

CONCLUSION

For any business, successful Customer Relationship Management navigation

is becoming increasingly important in today competitive business world. Customer expectations

are always increasing, and business services must increase along with these expectations. CRM

is the method through which businesses can connect with their customers and therefore serve

them better. Our experience with CRM design suggests there is no-one-size fits approach. The

CRM system needs to be tailored to the specific organizations objective and information needs.

The manner in which feedback system is created and the ways in which results are used should

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be determined based on situational factors descriptive of the CRM organization, its customers

and its operative.

From the overall study of identifying the customer relationship between the

customer and the company, we may conclude that the TUBES PRODUCT OF INDIA extends a

good customer relationship management. But the company needs to highly focus on the value

added services and some special services provided to the customers. Businesses with successful

CRM strategy and applications will notice a large increase in sales, customer satisfaction, and

simply the overall success of the business.

BIBILOGRAPHY

WEBSITES:

1.http://en.wikipedia.org/wiki/Customer_relationship_management

2.http://www.zeelabs.com/CRM.htm

3.http://www.crmnewz.com/

4 .http://www.crystaldecisions.com/

JOURNALS:

1.Bates, Martin D., Davis, Kendall B., Haynes, Douglas D., Reinventing IT services, McKinseyQuarterly, 2003, Issue 2

2.Binggeli, Urs, Gupta, Sanjay, de Pommes, Carlos, CRM in the air, McKinsey Quarterly,

2002, Issue 3

3.Child, Peter, Dennis, Robert J., Can marketing regain the personal touch?, McKinseyQuarterly, 1995,Issue 3

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4. Ebner, Manuel, Hu, Arthur; Levitt, Daniel, McCrory, Jim, How to rescue CRM, McKinsey

Quarterly, 2002 Special Edition: Technology Issue 4

5.Goff, Joshua, Harding, David, Shah, Rajesh, Singer, Marc, A new way to reach small

businesses,McKinsey Quarterly, 1998, Issue 3

BOOKS:

1."The One to One Future: Building Relationships One Customer at a Time" by Don Peppers,Martha Rogers

2. "Essentials of CRM: A Guide to Customer Relationship Management" (Essentials Series) by

Bryan Bergeron

3. "The Customer Differential: The Complete Guide to Implementing Customer RelationshipManagement" by Melinda Nykamp

final ti project

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