ASSIGNMENT # 2 OF CUSTOMER RELATIONSHIP MANAGEMENT

TOPIC- CRM STRATEGIES OF

AND

Submitted to :-

Mr. Prince sir

Submitted by: Sanjay giri goswami Roll no.- A15 Regt.- 10908015

INTRODUCTION OF TOPIC The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers, and/or other marketing actors. CRM is based on the premise that, by having a better understanding of the customers needs and desires we can keep them longer and sell more to them. There are three parts of application architecture of CRM: Operational - automation to the basic business processes (marketing, sales, service) Analytical - support to analyze customer behavior, implements business intelligence Co operational - ensures the contact with customers (phone, email, fax, web...) To understand the real business scenario about the practice of CRM in Indian automobile industry & than compare it with MARUTI & TATA motors in passenger cars. The automobile industry in India is the tenth largest in the world with an annual production of approximately 2 million units is expected to become one of the major global automobile industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automobile industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in India exceed 100,000 units. According to Society of Indian Automobile Manufacturers in 2008-09 the cumulative growth of the Passenger Vehicles segment during April 2008 March 2009 was 12.17 percent. Passenger Cars grew by 11.79 percent, Utility Vehicles by 10.57 percent and Multi Purpose Vehicles by 21.39 percent in this period

MARUTI SUZUKI INDIA LTD Maruti and CRM Post 1998, the market structure changed drastically. As a result of the internal turmoil and the changes in the external environment, Maruti faced a depleting market share, reducing profits, and increase in inventory levels, which it had not faced in the last 18 years. This forced Maruti to create the land-mark in CRM by launching a website for the customers in the year 1998. Maruti is investing a lot of money and effort in building customer loyalty programmes. Maruti initiated a new car pickup & delivery facility for women car owners. A study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their aftersales service experience, compared with customers who do not receive this service".

Maruti also launched mission to promote safe driving habits jointly with Institute of Driving Training and Research. It gained a lot of prominence and appreciation for this initiative. It also launched Dil Se- a special program for Indians living abroad or NRIs, to facilitate them to gift Maruti cars online to friends and relatives at home. Maruti innovated by setting up a first ever online club Swift Life exclusive for all Swift owners.

ADVANTAGE WHICH HELP IN CRM OF MARUTI A Buying Experience like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. Quality Service across 1036 Cities In the J.D. Power CSI Study Maruti Suzuki scored the highest across all 7 parameters: 1. 2. 3. 4. 5. 6. 7. Least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. One Stop Shop At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs. The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

METHODS USED FOR ACQUISITION OF CUSTOMER DATA There are three main methods of the CRM process in Maruti: analytical, operational, and collaborative. Operational CRM Operational CRM refers to the customer facing business processes such as sales, marketing and service. Interactions with customers are generally stored in customers contact histories, and staff can retrieve customer information as necessary. This provides staff members with immediate access to important information on customer products and prior calls etc. eliminating the need to individually obtain this information directly from the customer. The tasks that come from these processes are then passed on to the employees responsible for them, along with the information necessary for carrying out the tasks. Managing Campaigns Enterprise marketing Automation Sales force Automation Sales Management System

Analytical customer relationship management In this aspect of CRM, data is gathered from various CRM efforts and analyzed to identify crossand up-selling opportunities. This data gathering is a ongoing process which allows for business decisions to be continually refined over time based on feedback from earlier analysis. It makes heavy use of data mining and other techniques to produce useful results for decision making. It is at the analytical stage that the more information that the analytical software has available for analysis, the better its predictions and recommendations will be. Sales intelligence CRM Sales intelligence CRM is similar to analytical CRM but is intended as a ore direct sales tool Features include alerts sent to sales staff regarding: Designing and executing targeted marketing campaigns.eg customer acquisition and cross selling. Analyzing customer behavior in order to take decisions regarding products and services.

Management information system (Forecasting or Budgeting).

Collaborative CRM Collaborative CRM streamlines interactions with customers through all channels email, phone, letter, and fax by supporting ease of interaction and coordinating employee teams and customers. Its a customer relationship management solution that brings customers, employees, processes, and data together to allow companies to better serve and retain their customer.

CUSTOMIZATION METHODS USED BY MARUTI

SETTING UP "EXPRESS SERVICE BAYS" & "2 - TECHNICIAN BAYS" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays. These are done for customers who are hard pressed for time. Both the initiatives undertaken in this direction have helped improve customer interface and also helped increase the productivity and capacity of existing workshops. MEGA CAMPS

The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. Apart from mega camps workshop camps like A/C checkup camps, PUC and general check-up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives. SERVICE AT DOOR STEP THROUGH MARUTI MOBILE SUPPORT

Another unique initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable MARUTI AUTO CARD Maruti Auto Card in association with Master Card, brings the customer all the advantages of an international credit card in addition to bringing the customer an opportunity of earning valuable Auto points for his next Maruti car.

MARUTI TRUE VALUE Maruti has aided customers by providing them the facility to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return. This helps them retain the customer.

MARUTI CALL CENTER Maruti has proper customer complain handling cell under the CRM dept. The CIC will help MUL rapidly build an information pool of over 3 million Maruti owners as well as that of its prospective customers.

MARUTI ON ROAD SERVICES

The MOS ensures: Round-the-clock services in most of the cities

 A computerized call-monitoring system dispatches a mobile MOS van to the customer at the earliest All MOS vans are managed by qualified Maruti Authorized Dealers / MASS technicians who are trained by Maruti in problem diagnosis The customer are charged only Rs.100 on labour and spares N2N Marutis N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicles life: Leasing, Maintenance, Convenience services and Remarketing. MARKET RESEARCH DEPARTMENT Their Market Research department remains on its toes to study the changing consumer behaviour and market needs. They capture the CRM data throughout the customer buying cycle through their CRM softwares and analyse the changing customer trends. Maruti enjoys 70% repeat buyers which further bolsters their claim of being customer friendly AVAILABILITY OF EASY FINANCE

Maruti has also made the customer experience hassle free and helped building customer satisfaction by developing different re venue streams in the form of Maruti Insurance and Maruti Finance.

MARUTI SUZUKI CUSTOMER CARE WEBSITE

CUSTOMER PRIVACY DATA POLICIES OF MARUTI Maruti Statement of Privacy At Maruti we take your privacy seriously. Please read the following to learn more about our terms and conditions. What the terms and conditions cover. This covers Maruti's treatment of personally identifiable information that Maruti collects when you are on Marutiudyog site and when you use our services. This policy also covers Maruti's treatment of any personally identifiable information that Maruti shares with you. This policy does not apply to the practices of companies that Maruti does not own or control or Maruti does not own or employ or manage.

Information Collection and Use Maruti collects personally identifiable information when you register for a Maruti account. When you choose the services and promotions. Maruti may also receive personally identifiable information from our business partners. When you register with Maruti, we ask for your name, e-mail address, birth date, gender, occupation, industry and personal interest. Once you register with Maruti and sign in to our services, you are not anonymous to us. Maruti uses information for three general purpose: to fulfill your requests for certain products and services and to contact you about specials and new products.

Information Sharing and Disclosure Maruti will not sell or rent your Personally Identifiable Information to anyone. Maruti will send Personally Identifiable Information about you when: We have consent to share the information We need to share your information to provide the product or service you have requested We respond to subpoenas, court orders or legal process. When we find your action on the web site violates the Maruti terms and condition or any of your usage guidelines for specific products or services. Security Your Maruti account information is password-protected for your privacy and security. We have taken adequate measures to secure access to your personal data

TATA MOTORS BUSINESS STRATEGY & CRM OF TATA MOTORS In TATA industry , Companies focus upon the needs of customer, not only providing the tangible product i.e. CAR but also augmented product such as warranty, customer service, providing more services than competitors, distributing free gifts, free vehicle check-up, etc & now a days almost every big company use CRM software in collecting data on consumers & their transaction, providing them customized service . After every new launch of a car, companies give information about that same product to their loyal customers. Not only companies stick to that car only but tries to sell accessories also like seat covers, Alloy wheels, music system so that customer doesnt have to go to several places & quite often dealers give discount also in these items as a CRM business strategy . Tata Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1, currently under way, focuses on capturing customer and vehicle data and automating routine tasks. Phase 2 will focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3 will focus on tuning the system and delivering additional value-added services to customers. To address its competitive challenges, Tata Motors began standardizing its customer-facing business processes companywide, laying the foundation for stronger dealer relationships, improved operational efficiency and effectiveness, and a better customer experience. This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India.

FEATURES Some of the unique features of the CRM employed by TATA Motors are: Multi- organization support - provide access to data for different organizations while maintaining the security and privacy of each organization Can be deployed easily over the Internet Provides robust partner management capabilities ideal for Tata Motors with its far-flung dealer network The user-friendly interface has simplified the process of training Tata Motors 10,000plus dealer sales force

Covering a country with an area of 3.3 million square kilometers also required an innovative communications solution. Tata Motors links its 1,600 customer touch points with its centralized data center in Mumbai using a combination of VSATs and high-speed virtual private networks.

CRM Systems and Implementation These are some of the key features for which TATA applies CRM software: Sales management shares customer information between sales, service and parts departments Vehicle management gives complete vehicle data along with sales, service and financial history, as well as dealer and license information and owner and contact information Activity and e-mail management systems link e-mails with associated Contacts, leads and opportunities Service management increases customer loyalty by enabling consistent, personalized interaction across all customer touch points including, telephone, e-mail, Web, wireless devices and in-person meetings.

RELATIONSHIP POLICY: The customer is tied to the company primarily through financial incentives lower prices for greater volume purchases or lower prices for customers who have been with a firm a long time. As we know, the acquisition cost is not the only cost one faces when buying a car. it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Tata Motors provides very well after sale services to its customers. It is in the economy segment that the affordability of spares is most competitive as compared to others. It also provides its long term customers either with stable prices or lower price increases as compared to the new customers. TATA motors provides financial incentives and rewards to the customers who bring more business to their service station by recommending and spreading good word of mouth to others about their services. TATA Motors provides free of cost servicing to customers having Tata cars within a two year warranty time period. TATA motors also offer an extended paid warranty program marketed under the brand, Forever Yours for the third and fourth year after purchase. The extended warranty program helps in strengthening contact with the customer and also increases the revenue generated from sale of spares, accessories and auto mobile related services.

STATIONS OF EXPERIENCE IN TATA MOTORS

Pre Purchase

Post Purchase

METHODS USED FOR ACQUISITION OF CUSTOMER DATA IN TATA MOTORS:APPROACH TATA Motors has taken a phased approach in its implementation of the CRM initiatives to ensure success in each phase before moving forward Phase 1: It focuses on capturing customer and vehicle data and routing the processes Phase 2: This phase focuses on leveraging data to improve customer interaction and product development as well as deployment. The company plans to deploy marketing, call centre, business analytics, and captive finance modules. This will allow TATA Motors to better understand customer needs and requirements, improve its responsiveness to service requests and problem resolution, initiate

more proactive contacts with customers, add support for new products and services, and streamline dealer-financing processes. Phase 3: This phase will focus on tuning the system and developing value added services for the customers.

Tata Motors implemented Oracle's Siebel TATA; a comprehensive customer relationship management (CRM) solution designed specifically form companies in the auto mobile industry. Seamlessly integrated with Tata Motors dealer management system and SAP back-office applications, Siebel TATA has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. By tightly integrating Siebel TATA and its dealer management system, TATA has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from another. To further enlist dealer support, Tata Motors involved dealers throughout the solution configuration and deployment process.

Integrating Siebel TATA with our dealer management system ensured that our dealers would immediately see the value in the solution, Sreenivasan explains. This has helped us overcome the usual resistance to change and gain rapid acceptance from our dealers. Siebel TATA has been closely integrated with a wide array of SAP back-office applications, including applications inventory management, fulfillment, and parts location. Pricing and tax calculations can be adjusted for each dealers requirements. In addition, comprehensive sales and reporting functionality built into Siebel TATA enables TATA to distribute sales targets to its dealers and roll up sales numbers across the country.

CUSTOMIZATION IN TATA MOTORS: Customization bonds approach suggest that customer loyalty can be encouraged through intimate knowledge of the individual customers and through the development of one-to one solutions that fit the individual customers needs. TATA MOTORS believes in 'Customer is THE KING', and also knows well how to make them feel One. They have an extensive follow up programmed and prompt service. This helps them to change their strategies and customize their services to fit developing customer needs. For this purpose, they always request the customers to fill in their feedback form that follows the service/repair visit. If a low score is received on their feedback form, they would go out of the way to apologize for the error. Simultaneously, they provide technicians who visit their home place in order to attend the issues and rectify them to their satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved.

CUSTOMER PRIVACY DATA POLICIES IN TATA MOTORS:-

The Policy on Consumer Privacy is given as under: Tata Motors values long term relationship with its customers based on the foundation of Trust, Integrity and Confidence. While delivering excellent quality products and services, Tata Motors is committed to protect Consumer Privacy in managing information and data furnished by its customers for official or personal purposes. Such data will not be divulged to or shared with other individuals/institutions without the prior written permission from customers. Tata Motors is committed to designing processes and practices that ensure continued trust of its customers.

REFERENCES Websites: http://www.articlesbase.com/marketing-articles/maruti-udyog-limited-managingcompetition-successfully-723310.html www.marutisuzuki.com http://en.wikipedia.org/wiki/Maruti_Suzuki http://www.tata.com/company/Articles/inside.aspx?artid=SZAxi/HHEQ4= www.scribd.com/doc/2876978/tatamotorssiebelcasestudy http://profile.iiita.ac.in/pchand_mba05/pom/maruti.pdf www.insidecrm.com/archive/2005/09/tata_motors_rol.html http://www.google.co.in/images?um=1&hl=en&biw=1280&bih=547&tbs=isch:1&btnG= Search&q=tata%20motors%20crm%20strategy www.marutialto.com/privacy-policy.aspx