group4 report

8/7/2019 Group4 Report

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CRM IN MAHINDRA & MAHINDRA

COMMERCIAL VEHICLE DIVISION

Submitted to: Submitted by:

Prof. Mukesh Chaturvedi Ankit Vijayvargiya

Anurag Verma

Ashvind Ratnakaran

Davis Louis

Mudabbir Hossain


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CRM IN M&M COMMERCIAL VEHICLE DIVISION

ABOUT THE M&M GROUP

Few groups can identify as closely with India's destiny and industrial progress as the Mahindra

Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had

the same aspirations and both experienced the inevitable troughs and crests in the journey

towards their goals. And both continue to march on the path to progress and global

recognition.The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United

States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of

the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle

that had proved its invincibility on the battlefields of World War II be ideal for India's rugged

terrain and its kutcharural roads?

Swift action followed this thought. The Mahindra brothers joined hands with a distinguished

gentleman called Ghulam Mohammed & on October 2nd, 1945, Mahindra & Mohammed wasset up as a franchise for assembling Jeeps from Willys, USA. Two years later, India became

an independent nation and Mahindra & Mohammed changed its name to Mahindra &

Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the first

Finance Minister of Pakistan. Since then, Mahindra & Mahindra has grown steadily in size

and stature and evolved into a Group that occupies a premier position in almost all key

sectors of the economy. The Group's history is studded with milestones. Each one taking the

Group forward.

The US $6 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra &

Mahindra is the only Indian company among the top tractor brands in the world. MahindrasFarm Equipment Sector has recently won the Japan Quality Medal, the only tractor company

worldwide to be bestowed this honour. It also holds the distinction of being the only tractor

company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility

vehicles in India. It made a milestone entry into the passenger car segment with the Logan.

The Group has a leading presence in key sectors of the Indian economy, including the

financial services, trade and logistics, automotive components, information technology, and

infrastructure development.

With over 62 years of manufacturing experience, the Mahindra Group has built a strong basein technology, engineering, marketing and distribution which are key to its evolution as a

customer-centric organization. The Group employs over 50,000 people and has several

state-of-the-art facilities in India and overseas.

The Mahindra Group has ambitious global aspirations and has a presence on five continents.

Mahindra products are today available on every continent except Antarctica. M&M has one

tractor manufacturing plant in China, three assembly plants in the United States and one at

Brisbane, Australia. It has made strategic acquisitions across the globe including Stokes

Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co GmbH (Germany). Its

global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and

Mahindra South Africa.


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M&M has entered into partnerships with international companies like Renault SA, France,

and International Truck and Engine Corporation, USA. Forbes has ranked the

Mahindra Group in its Top 200 list of the Worlds Most Reputable Companies and in the Top

10 list of Most Reputable Indian companies. Mahindra has recently been honoured with the

Bombay Chamber Good Corporate Citizen Award for 2006-07.

CUSTOMER RISHTEDARI FROM M&M

M&M started thinking about CRM not really as customer relationship management, but

as CRMM - as 'Customer Rishtedari from M&M'. Just changing the word from Relationship

to Rishtedarireally makes a big difference. Relation is nothing but rishtedari; and

relative, rishtedar. Take care of the customer, as you will do for any guest who comes to your

house. And, once you come to that realisation, you need no training in CRM. Let me get into

little bit detail of how M&M is trying to transform itself into a truly customer centricorganisation. One of the first difficulties that we faced was this age-old concept of internal

customers - R&D considered manufacturing as the customer, manufacturing considered

sales & marketing as the customer, and it was left to the Sales and Marketing to take care of

the end customer. I am sorry, but I do not believe in this concept of internal customers. All

these departments are part of the chain who should have only one goal- to serve the only

customer that finally matters; the customer has to be the person who is paying his or her

hard earned money to buy the products and the services. It sounds simple but changing this

mindset was a major task. A guy on the shop floor will say, "I never meet Mr Customer, how

can I think of him as my customer." Surely, we have managed to change this mindset. I hope,

the Mahindra dealers who are present here have begun to sense that change. In fact, the

other day a man from our plant saw a Mahindra vehicle stranded on the road. He stopped

and gave his own vehicle to the customer to proceed where he was going, and said, "I will

send your vehicle to the workshop and call you when the fault is fixed." This is not written in

any of our CRM handbooks, but it is a perfect example of how CRM is about heartware.

Another change that we have made is to align our goal for all M&M (Auto Sector) employees

with customer as the focus. 30 per cent of M&M's performance bonus depends on how

employees do in terms of customer satisfaction; and for all M&M dealers, 60 per cent of their

'MDEP's score, depends on how they perform in our customer focus processes. (MDEP is

Mahindra Dealer Excellence Programme). Yet another change is in the form of well-defined

process for taking care of the customer from the time he enters the showroom or theworkshop till the time he leaves the showroom/workshop. But, I repeat that while the

processes are important, they will not deliver customer relationship unless it comes from

mindset change, unless it comes from a desire from your heart. This kind of change in the

approach of M&M and its dealerships to customer relationship building has not been easy,

but has been worth it.

Let me walk through a few very effective but simple things that M&M has done in this

direction in the last couple of years. For example, the way M&M dealers are now delivering

vehicles is really becoming an emotional experience for the customer. Various dealers have

come up with different ways of making it an auspicious occasion for the customer. They areperforming puja to match the faith of the customer. There are a few dealers who actually


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have full-time Pujari in their showrooms and have different kinds of puja ingredients to

perform the puja. Once I was present at one of the dealerships when the puja was being

performed and I could see it as an occasion full of emotions for the customer.

Yet another thing M&M has done in customer relation building is the adoption of the concept

of happy horn that has been borrowed from Pizza Hut. As a result of these customer relationmeasures, M&M's performance in 2005 JD Power Sales Satisfaction Index and other

customer satisfaction surveys has seen a marked improvement. Mahindra and Mahindra

was the most improved brand in 2004 JD Power Sales Satisfaction Index, showing an

improvement of over forty points compared to the industry average of six points. In the CSI

too, M&M once again was the most improved brand, mustering thirty points in the

improvement score as against the industry average of three points. Similarly, M&M did

remarkably well in Total Customer Satisfaction (TCS) survey also.

EXISTING PRACTICES OF CRM IN M&M

Reminders of free servicing

The reminders for the free servicing are given to the customers according to the

database given by the company.

Send cards during festivals

This is a usual practice by all companies and diligently followed by M&M also.

Pujari

Owning a new vehicle is a great achievement and firstly Puja of the vehicle is done

before using it. To remove the hassle of arranging a Pujari, M&M dealerships havePujaris to conduct the rituals. This greatly affects customer relationship.

Referrals

Discounts on next servicing This is scheme to attract more customers

and existing customers who refer new customers get benefit for it. These

benefits are in the form of discounts on next servicing and other benefits like

free oil change depending on the number of new customers given by the

existing customer.

Gifts for drivers A concept of Indian Oil Ltd applied in south India forattracting the auto rickshaw drivers to their pumps by providing them with

shirts with Indian Oil printed on it. A similar concept is applied by M&M also in

their service station and it has helped a lot for increasing the number of

servicing customers.

QUALITY POLICY OF MAHINDRA AND MAHINDRA


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The quality The Quality Policy is made jointly by the Management Representatives of all

locations under the coordination of MQS. It is finalised by the President. Quality Policy is

communicated by MR through E-mail, Booklets, and Hardboard copies at appropriate

locations. The Suitability of the Quality Policy is reviewed jointly every year.

The quality policy of M&M shows how important a customer is for them as the policy

contains terms like Customer Perceptible Quality and Quality differentiation shall score at

the level Customers consider premium. Most of the automobile companies boast of their

quality standards and global level certifications but none focus on customer as much as

Mahindra & Mahindra does.

EXPERIENCE OF CRM PRACTICES


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Financing The financing arrangements take many days which thereby delays the

delivery date of the vehicle. The documentation and processing of required

documents take long if financing is done by an outside agency and this causes delay.

Spare part availability The availability of genuine spare parts is a matter of

concern as most of the customers by spurious local spare parts which are cheap butthe life time of those products is small when compared to the genuine products. M&M

is now trying to establish another channel for distribution of genuine spare parts and

pushing their dealers to promote genuine spare parts during servicing.

Desired Turnaround Time Turnaround time is the time when vehicle is given for

serving and when fully serviced vehicle is delivered back to the customer. This time

varies depending upon the type of servicing and condition of the vehicle. M&M tries

really hard to keep up the desired turnaround time and able to achieve it most of the

times.

STATIONS OF EXPERIENCE

The first station of experience is the Test Drive of the vehicle. The converted customerstake the test drive at their location only where the dealers bring the vehicle for the test drive.

This is a positive experience for the customers as customer does not take the trouble of

visiting the dealership for the test drive as in the case of passenger vehicles.

The second station of experience is Financing of the vehicle. This a definitely a negative

experience as there is a lot of hassle for clearing a loan and huge amount of documentation

and processing time which eats up the expected delivery date of the vehicle.

The third station of experience is Sales. This is a positive as the have a central

warehousing of the vehicles and even if the desired vehicle is not available at a dealership it

is arranged from nearby dealership and intimation is given to the head office regarding the


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same. So, the customer most of the time gets the vehicle which he desires so M&M keeps

up the desired customer service level.

The fourth station of experience is After sales service. This is negative as there are many

reasons for it starting for very basic of warranty schemes not properly clarified. The item

which can be freely replaced during warranty period are not mentioned and the experiencecomes like a vehicle is given for warranty scheme and the bills comes out to be Rs. 5000 this

is because the customer does not know which all parts are freely replaced and for which all

parts payments are to be made.

SUGGESTIONS

Financing through Mahindra Financing By using this option the company can

reduce the time for arranging finances as the financing agency is in-house so it will

create less hassle during clearing of the loan and they can finance up to 85% of theamount.

Calls Calls should be done to the customers regarding proper functioning of

various accessories like headlights and others.

CNG Leakage There should be timely checking of the CNG system and it is a

problem faced by most of the vehicle owners and if this is done regularly then it

would enhance customer loyalty.

Spare Part availability As discussed before, the spare part availability causes lot

of problem to the company as well as the customers so M&M is developing aseparate channel for spare parts that is they will setup retail stores for spare parts.

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