CRM Project 2011 GHCPReddy

Report / Study on

“A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER

RELATIONSHIP MANAGEMENT”

VIZAG STEEL PLANT

VISAKHAPATNAM

Prepared By

G H C PRASAD REDDY

[Under the guidance of]

Mr. D SREENATH REDDY Dy.GM (Mktg)

In partial fulfillment of the Course-Industry Internship Programme (IIP)

in Semester II of the Master of Business Administration

ALLIANCE UNIVERSITY – SCHOOL OF BUSINESS

BANGALORE

2010-2012

ALLIANCE UNIVERSITY – SCHOOL OF BUSINESS 2011

VIZAG STEEL PLANT |Pride of Steel 2

Master of Business Administration

Industry Internship Programme (IIP)

Declaration

This is to declare that the Report entitled “A STUDY ON CUSTOMER SATISFACTION

AND CUSTOMER RELATIONSHIP MANAGEMENT” has been made for the partial

fulfillment of the Course: Industry Internship Programme (IIP) in Semester II (Batch: August

2010-12) by me at VIZAG STEEL PLANT (organization) under the guidance of Prof. RAY

TITUS.

I confirm that this Report truly represents my work undertaken as a part of my Industry

Internship Programme (IIP). This work is not a replication of work done previously by any

other person. I also confirm that the contents of the report and the views contained therein

have been discussed and deliberated with the Faculty Guide.

Signature of the Student :

Name of the Student (in Capital Letters) : G H C PRASAD REDDY

Registration No : 10SBCM0506



Master of Business Administration

Certificate

This is to certify that Mr. / Ms. G H C PRASAD REDDY Regn. No. 10SBCM0506 has

completed the Report entitled “A STUDY ON CUSTOMER SATISFACTION AND

CUSTOMER RELATIONSHIP MANAGEMENT” under my guidance for the partial

fulfillment of the Course: Industry Internship Programme (IIP) in Semester II of the Master

of Business Administration (Batch: Aug 2010 – 2012).

Signature of Faculty Guide:

Name of the Faculty Guide: D SREENATH REDDY



ACKNOWLEDGMENT

I would like to express my gratitude to Mr. D SREENATH REDDY for providing

me an opportunity to work at VIZAG STEEL PLANT.

During the training session and the report preparation, I have been helped by many

personalities, without the help of whom; the completion of this task would have been very

tough. While submitting the work in printed form, I would take this opportunity to thank

everyone, who has supported me during this project.

First, my sincere gratitude to Mr D SREENATH REDDY Deputy General Manager,

VIZAG STEEL PLANT who had allowed me to undertake the project and who has helped

and supported me at every point throughout the tenure of the project. She has played a

versatile role, by being a friend to listen to my difficulties, being a teacher to correct me

whenever I was getting off the track and more importantly a facilitator, who provided me

with all the information and sources, which has an immense contribution in successful

completion of this project.

Secondly, I would like to thank Prof. RAY TITUS, Faculty Guide. Under whose

guidance I could produce a decent piece of work. One remarkable quality of which has

helped me to do justice to the work assigned to me is his quest for excellence. He guided me

all the way from the beginning till the end by giving me his valuable inputs, whenever I

required. It was a pleasure to be working under him.

G HC PRASAD REDDY

10SBCM0506



TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 7

2. INTRODUCTION

2.1 INDUSTRY PROFILE 10

2.2 COMPANY PROFILE 25

2.3 THEORETICAL BACKGROUND 36

3. PROJECT PROFILE

3.1 OBJECTIVE OF STUDY 48

3.2 RESEARCH METHODOLOGY 48

4. OBSERVATIONS & ANALYSIS

4.1 ANALYSIS 51

4.2 CUSTOMER SATISFACTION INDEX 67

5. FINDINGS 74

6. RECOMMENDATIONS 77

7. CONCLUSION 79

8. ANNEXURE

8.1 QUESTIONNAIRE 81

9. REFERENCES 84



CHAPTER-1

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Customer Relationship Management (CRM) is the latest tools from the information

technology AND other basic industry which enables, promotes and develops business

towards better profitability. All business entities have realized the importance of CRM and

carving the efforts to make the customer loyal to business. The importance of the customer

in a making breaking a business has led to greater introspection, conceptual clarity and

evolution of customer relationship management, both as an art and science, and development

of appropriate tools and software for enhancing business and prolonging the product and

business life cycle. This evolution has been a consumer to a many time (repetitive), „long

term relationship‟ management and importance of the „life time value‟ of the customer.

The benefits of customer relationship management are considered are abounded. it

allows organizations not only to retain customers, but enables more effective marketing,

creates intelligent opportunity for cross selling and open up the possibility of rapid

introduction of new brands and products. The major objectives are Enable the company to

quickly identify, contract, attract and acquire new customers. Obtain a better understanding

of the customers – their wants and needs. Define the appropriate product and service offering

and match it to the customer‟s unique needs. Manage and optimize a company sales cycle.

Identify cross-selling and up-selling opportunities.

Visakhapatnam Steel Plant has been striving to enhance quality in delivery of

products and services and trying to retain customer towards long term association. The

researcher has identified the need and study the practices at VSP, and has identified that VSP

has been categorically improved their CRM practices.

The first chapter deals with the present state of Iron and steel industry in India, which

lays the context for the study, the chapter also introduces concepts relating to CRM and it

various issues.

The second chapter is a profile of Vishakhapatnam steel plant, a brief introduction, its

marketing strategies, major facilities, SWOT analysis of industry amongst others.



The third chapter deals with the methodology involved in conducting this study. It

lists out the objectives of the study, the data collection methods employed and the scope of

the study.

The fourth chapter is an accumulation of data collected for the project. It consists of

all the primary and secondary data. The data collected is organized and exhibited in this

chapter.

The next chapter is an analysis of the data collected in the light of areas of

improvement for VSP, the analysis elaborates on the strategies that can be employed by VSP

for better CRM.

The last chapter is a list of recommendations given to the company on measures to

improve implementation of CRM.



CHAPTER-2

INTRODUCTION & INDUSTRY

PROFILE



INTRODUCTION & INDUSTRY PROFILE

PROFILE OF IRON & STEEL INDUSTRY

Steel is a versatile, constantly developing material that underpins all manufacturing

activity. If a product is not made from steel, then it is certainly made using steel at some point

in the manufacturing process.

2.1.1 OVERVIEW OF IRON AND STEEL INDUSTRY

Steel is crucial to the development of any modern economy and is considered to be

the backbone of human civilization. The level of per capita consumption of steel is treated as

one of the important indices of the level of socio-economic development and living standard

of the people in any country. It is a product of a large and technologically complex industry

having strong forward and backward linkages in terms of material flows and income

generation. All major industrial economies are characterized by the existence of a strong steel

industry and the growth of many of these economies has been largely shaped by the strength

of their steel industries in their initial stages of development.

2.1.2 HISTORICAL PERSPECTIVE

The finished steel production in India has grown from a mere 1.1 million tonnes in

1951 to 29.27 million tonnes in 2000-2001. During the first two decades of planned economic

development, i.e. 1950-60 and 1960-70, the average annual growth rate of steel production

exceeded 8%. However, this growth rate could not be maintained in the following decades.

During 1970-80, the growth rate in steel production came down to 5.7% per annum and

picked up marginally to 6.4% per annum during 1980-90, which increased to 6.65% per

annum during 1990-2000. Though India started steel production in 1911, steel exports from

India began only in 1964. Exports in the first five years were mainly due to recession in the

domestic iron and steel market. Once domestic demand revived, exports declined. India once

again started exporting steel only in 1975 touching a figure of 1 million tonnes of pig iron

export and 1.4 million tonnes of steel export in 1976-77. Thereafter, exports again declined to

pick up only in 1991-92, when the main producers exported 3.87 lakhs tonnes, which rose to

2.79 million tonnes in 1995-96. The steel exports in 1999-2000 were 2.36 million tonnes and

in 2000-01 it was 2.57 million tonnes. The growth in the steel sector in the earlier decades



since Independence was mainly in the public sector units set up during this period. The

situation has changed dramatically in the decade 1990-2000 with most of the growth

originating in the private sector. The share of public sector and private sector in the

production of steel during 1990-91 was 46% and 54% respectively, while during 2000-01 the

same was 32% and 68% respectively. This change was brought about by deregulation and

decontrol of the Indian iron and steel sector in 1991. A number of policy measures have been

taken since 1991 for the growth and development of the Indian iron & steel sector. Some of

the important steps are

Removal of iron & steel industry from the list of industries reserved for the public

sector and also exemption from the provisions of compulsory licensing under the Industries

(Development & Regulation) Act, 1951, deregulation of price and distribution of iron & steel,

inclusion of iron and steel industry in the list of high priority industries for automatic

approval for foreign equity investments up to 74%, lowering of import duty on capital goods

and raw materials etc.

The Indian steel sector was the first core sector to be completely freed from the

licensing regime and the pricing and distribution controls. This was done primarily because

of the inherent strengths and capabilities demonstrated by the Indian iron and steel industry.

During 1996-97, finished steel production shot up to a record 22.72 million tonnes with a

growth rate of 6.2%, while in 1997-98, the finished steel production increased to 23.37

million tons, which was 2.8% more than the previous year. The growth rate has drastically

decreased in 1997-98 and 1998-99 being 2.8% and 1.9% respectively as compared to 20% in

1995-96 and 6.2% in 1996-97. The growth rate in 2000-2001 has improved to a healthy

9.60% with the total production touching 29.27 million tonnes. The production of finished

steel during 2001-02 has been 30.61 million tonnes, which means a lower growth rate of

about 4.5% compared to the previous year. This fall in the growth rate of steel production has

been brought about by several factors that, inter-alia, include general slowdown in the

industrial production and construction activities in the country coupled with lack of growth in

major steel consuming sectors. The total production of finished steel and the share of main

and secondary producers during 90's and up to 2002-03 are given in the annexure

2.1.3 THE INTEGRATED STEEL PLANTS IN INDIA ARE:

Rourkela Steel Plant

Bhillai Steel Plant

Bokaro Steel Plant



Durgapur Steel Plant

Indian Iron Steel Company ( IISCO)

Tata Iron and Steel Company ( TISCO)

Visakhapatnam Steel Plant ( VSP)

ESSAR Steel Company

JINDAL Steel Company

2.1.4 IRON AND STEEL PROMOTION IN INDIA

Although iron and steel is one of the most important industries in the Indian

manufacturing sector, India is only the 15th largest steel producer in the world. Originating

from the first set up of a single steel plant in 1911-12, the iron and steel sector included 7

integrated iron and steel plants in 1995-96. Due to the regulatory and political development

of the sector only one of these plants is in private hands accounting for about 15% of total

steel production. The integrated steel units usually use the blast furnace – basic oxygen/open

hearth furnace process route for iron and steel production. In addition, there are about 180

secondary producers employing the electric arc furnace process. Another 500 mostly smaller

units rely on other processes such as induction furnace process, melting by re-rollers, and

ship breaking units.

2.1.5 PROJECTED PRODUCTION OF IRON & STEEL (Mt/annum)

Crude Steel

Production (Mt/annum) based on

Crude Steel Production (Mt/annum) based on

Year GDP total GDP industry Average

2001 28.71 29.53 29.12

2005 35.38 36.93 36.15

2010 45.95 49.07 47.51

Though currently the iron and steel sector seems to be on an upward path in a world

of free market competition and prices, there are several drawbacks threatening the Indian

industry. For example, the state of technology, despite the efforts towards modernization and

up gradation, is still inferior to that in other countries. Low costs of primary inputs have so

far led to low costs of production and economic viability of Indian steel. These advantages,



however, may be eroded in the near future making Indian steel less competitive. Therefore,

technological progress and the adoption of more efficient and improved technologies need to

continue supported by policy and economic incentives to the extent possible.

2.1.6 OBJECTIVE OF STEEL POLICY

1.6.1 Strategic Goal: The long-term goal of the national steel policy is that India should have a

modern and efficient steel industry of world standards, catering to diversified steel demand.

The focus of the policy would therefore be to achieve global competitiveness not only in

terms of cost, quality and product-mix but also in terms of global benchmarks of efficiency

and productivity. This will require indigenous production of over 100 million tonnes (mT)

per annum by 2019-20 from the 2004-05 level of 38 mT. This implies a compounded annual

growth of 7.3 percent per annum.

Table 1: Production, Imports, Exports and Consumption of Steel

(in million tonnes)

2.1.7 INDUSTRY STRUCTURE

The iron and steel industry in India is organized in three categories‟ viz. main producers,

other major producers and the secondary producers. The main producers and other major

producers have integrated steel making facility with plant capacities over 0.5 mT and utilize

iron ore and coal/gas for production of steel. In 2004-05, the main producers i.e. SAIL,

TISCO and RINL had a combined capacity of around 19.3 mT and capacity utilization was

104 percent. The other major producers comprising of ESSAR, ISPAT and JVSL had a

capacity of 6.4MT with capacity utilization of 97 percent. The secondary sector is dispersed

and consists of:

(a) Backward linkage from about 120 sponge iron producers that use iron ore and non-

coking coal, with a capacity of around 13 mT, providing feedstock for steel

producers. The capacity utilization in 2004-05 was 75 percent.

Production Imports Exports Consumption

2019-20 110 6 26 90

2004-05 38 2 4 36

CAGR* 7.3% 7.1% 13.3 % 6.9 %



(b) About 650 mini blast furnaces, electric arc furnaces, induction furnaces and energy

optimizing furnaces that use iron ore, sponge iron and melting scrap to produce steel.

Their capacity is around 14.7 mT, and capacity utilization in 2004-05 was 58 percent.

(c) Forward linkage with about 1,200 re-rollers that roll out semis into finished steel

products for consumer use. These are small and medium enterprises, whose reported

capacity is around 15 mT, and capacity utilization in 2004-05 was 55 percent.

2. 1.8 SWOT ANALYSIS OF THE INDUSTRY

The strengths, weaknesses, opportunities and threats for the Indian steel industry have

been tabulated below. The national steel policy lays down the broad roadmap to deal with all

of them.

Strengths

1. Availability of iron ore and coal

2. Low labour wage rates

3. Abundance of quality manpower

4. Mature production base

Weaknesses

1. Unscientific mining

2. Low productivity

3. Coking coal import dependence

4. Low R&D investments

5. High cost of debt

6. Inadequate infrastructure

Opportunities

1. Unexplored rural market

2. Growing domestic demand

3. Exports

4. Consolidation

Threats

1. China becoming net exporter

2. Protectionism in the West

3. Dumping by competitors

2.1.8 INDIAN STEEL INDUSTRY - A SWOT ANALYSIS

Strengths

India has rich mineral resources. It has abundance of iron ore, coal and many other

raw materials required for iron and steel making. It has the fourth largest iron ore reserves

(10.3 billion) after Russia, Brazil, and Australia. Therefore, many raw materials are available

at comparatively lower costs. It has the third largest pool of technical manpower, next to



United States and the erstwhile USSR, capable of understanding and assimilating new

technologies. Considering quality of workforce, Indian steel industry has low unit labour

cost, commensurate with skill. This gets reflected in the lower production cost of steel in

India compared to many advanced countries (Table 3). With such strength of resources, along

with vast domestic untapped market, Indian steel industry has the potential to face challenges

successfully.

Weaknesses

Endemic Deficiencies

These are inherent in the quality and availability of some of the essential raw

materials available in India, eg, high ash content of indigenous coking coal adversely

affecting the productive efficiency of iron-making and is generally imported. Advantages of

high Fe content of indigenous are often neutralized by high basicity index. Besides, certain

key ingredients of steel making, eg, nickel, ferro-molybdenum is also unavailable

indigenously. Systemic Deficiencies However, most of the weaknesses of the Indian steel

industry can be classified as systemic deficiencies. Some of these are described here. High

Cost of Capital Steel is a capital intensive industry; steel companies in India are charged an

interest rate of around 14% on capital as compared to 2.4% in Japan and 6.4% in USA. Low

labour Productivity In India the advantages of cheap labour gets offset by low labour

productivity; eg, at comparable capacities labour productivity of SAIL and TISCO is 75

t/man year and 100 t/man year, for POSCO, Korea and NIPPON, Japan the values are 1345

t/man year and 980 t/man year. High Cost of Basic Inputs and Services High administered

price of essential inputs like electricity puts Indian steel industry at a disadvantage; about

45% of the input costs can be attributed to the administered costs of coal, fuel and electricity,

eg, cost of electricity is 3 cents in the USA as compared to 10 cents in India; and freight cost

from Jamshedpur to Mumbai is $50/ton compared to only $34 from Rotterdam to Mumbai.

Added to this are poor quality and ever increasing prices of coking and non-coking coal.

Other systemic deficiencies include:

Poor quality of basic infrastructure like road, port etc.

Lack of expenditure in research and development.

Delay in absorption in technology by existing units.

Low quality of steel and steel products



Lack of facilities to produce various shapes and qualities of finished steel on-demand

such as steel for automobile sector, parallel flange light weight beams, coated sheets

etc.

Limited access of domestic producers to good quality iron ores which are normally

earmarked for exports, and

High level taxation.

Besides these Indian steel makers also lacked in international competitiveness on

determinants like product quality, product design, on-time delivery, post sales service,

distribution network, managerial initiatives, research and development, information

technology and labour productivity etc. As is evident in Table 4, the weaknesses gets

reflected in India‟s poor standing in the global competitiveness as measured in terms of

indicated parameters.

Opportunities

The biggest opportunity before Indian steel sector is that there is enormous scope for

increasing consumption of steel in almost all sectors in India. Table 6 gives a glimpse of

untapped potential of increasing steel consumption in India; eg, even to reach the comparable

developing and lately developed economies like China and other Europe, a quantum jump in

steel consumption will be required.

Unexplored Rural Market

The Indian rural sector remains fairly unexposed to their multi-faceted use of steel.

The rural market was identified as a potential area of significant steel consumption way back

in the year 1976 itself. However, forceful steps were not taken to penetrate this segment.

Enhancing applications in rural areas assumes a much greater significance now for increasing

per capital consumption of steel. The usage of steel in cost effective manner is possible in the

area of housing, fencing, structures and other possible applications where steel can substitute

other materials which not only could bring about advantages to users but is also desirable for

conservation of forest resources. Other Sectors Excellent potential exist for enhancing steel

consumption in other sectors such as automobiles, packaging, engineering Industries,

irrigation and water supply in India. New steel products developed to improve performance

simplify manufacturing/installation and reliability is needed to enhance steel consumption in

these sectors. Main objective here have to be improvement of quality for value addition in



use, requirement of less material by reducing the weight and thickness and finally reduction

in overall cost for the end user. Latest technology must be adopted by Indian steel

manufacturers for production of superior quality of steel for these applications. For example,

pre-coated sheets can be used in manufacture of appliances, furnishings, electric goods and

public transport vehicles. Production and supply of superior grades of steel in desired shapes

and sizes will definitely increase the steel consumption as this will reduce fabrication need;

thereby reduce cost of using steel. Few other perceived opportunities are: Export Market

Penetration It is estimated that world steel consumption will double in next 25 years. Quality

improvement of Indian steel combined with its low cost advantages will definitely help in

substantial gain in export market.

Threats

Slow Industry Growth

The linkage between the economic growth of a country and the growth of its steel

industry is strong. The Indian steel industry is no exception. The growth of the domestic steel

industry between 1970 and 1990 was similar to the growth of the economy, which as a whole

was sluggish. This sluggish growth in the steel industry has resulted in enhanced rivalry

among existing firms. As the industry is not growing the only other way to grow is by

increasing one‟s market share. Consequently, the Indian steel industry has witnessed spurts of

price wars and heavy trade discounts, which has done Indian steel industry no good as a

whole. Threat of Substitutes Plastics and composites pose a threat to Indian steel in one of its

biggest markets. For the automobile industry, the other material at present with the potential

to upstage steel is aluminum. However, at present the high cost of electricity for extraction

and purification of aluminum in India weighs against viable use of aluminum for the

automobile industry. Steel has already been replaced in some large volume applications:

railway sleepers (RCC sleepers), large diameter water pipes (RCC pipes), small diameter

pipes (PVC pipes), and domestic water tanks (PVC tanks).

Technological Change

Technological changes often force the industry structure to change. For a developing

country like India where capital itself is costly, technological obsolescence is a major threat.

Price Sensitivity and Demand Volatility The demand for steel is a derived demand and the

purchase quantity depends on the end-user requirements. The traders discounts. This



volatility of demand often affects the integrated steel manufacturers because of their inability

to tune their production in line with the market demand Fluctuations. Some other threats are:

Ever decreasing import duty on steel.

Dumping of steel by developed countries.

High quality products from developed countries available for import at very

competitive prices.

Non-availability of capital from financial institutions for iron and steel sector.

2.1.9 STRATEGIC RESTRUCTURING

A Comparative Analysis

The effect of globalization on steel industries in different regions or countries has not

been uniform. Each region is unique in its own way in terms of raw materials availability,

technology adopted, market conditions, trading policies, etc. Consequently restructuring of

steel industries in different regions have been done in a manner that best suits the needs and

situations of the country or region (Table 7). The divergent strategies adopted for

restructuring by steel industries in different countries/regions provide the right perspective for

building a turnaround strategy for Indian steel industry

2.1.10 STEEL DEMAND

Urban Areas: The present steel consumption per capita per annum is about 30 kg in

India, compared to 150 kg in the world, and 350 kg in the developed world. 2

The estimated

urban consumption per capita per annum is around 77 kg in the country, expected to reach

approximately 165 kg in 2019-20, implying a CAGR of 5 percent. Apart from the anticipated

growth in the construction, automobile, oil and gas transportation, and infrastructure sectors

of the economy, conscious promotion of steel usage among architects, engineers and students

by the Institute of Steel Development and Growth (INSDAG) and the large producers will

drive this additional consumption. Steps would be taken to encourage usage of steel in

bridges, crash barriers, flyovers and building construction. Benefits of steel usage would be

added to the technical education curricula in the country.

Rural Areas: The rural consumption of steel in India remains at around 2 kg per

capita per annum, primarily because steel is perceived to be expensive among the village

folks. Based on the promotional efforts mentioned above, and an active focus on opening new



block level rural stock points, a target is set for raising the per capita rural consumption of

steel to 4 kg per annum by 2019-20, implying a CAGR of 4.4 percent.

Exports: Although the focus of Indian steel industry is on the domestic market,

export will be another window on the demand side. The growth of exports of steel from India

has been around 10 percent per annum over the past decade. That speaks for the international

cost competitiveness of the steel sector. It takes assiduous effort to create, and hold on to

export markets. While the business decision to export will depend on the prevailing relative

prices, the Government would encourage strategic alliances with buyback arrangements and

dedicated export production through 100% export-oriented units. A growth rate of around 13

percent per annum is envisaged up to 2019-20. The issues related to exports have been

discussed in section 13 on Trade Policy.

2.1.11 INDUSTRY PERFORMANCE

The performance of Indian steel industry has been analysed in the medium term from

1997 to 2011. The sample for analysis includes data from SAIL and Tata Steel among the

ISPs and JVSL, Ispat, Essar and Lloyds among the secondary majors7.

Category wise estimated demand for iron and steel all India 2002-2003

Category Quantity, × 103 t

Bars and rods 10500

Structural 2500

Railway materials 845

Plates 2250

HR coils/skelp 6600

HR sheets 500

CR coils/sheets 3300

GP/GC sheets 1930

Electrical steel sheets 200

Tin plates 325

Pipes 850

Total finished steel 29500

Important performance indices such as Debt-Equity Ratio (D/E), Return on Net worth (Post

tax) (RONW), Net Sales/Total Assets and Net Profit/Net Sales have been calculated and

depicted in the Figures 3-6. Figure 3 depicts the rising trend of D/E from 2.13 to 2.90 in the



last four years. This shows that the industry is shouldering an increasing debt burden and

becoming more leveraged. Figure 4 shows an improvement in Net Sales/Total Assets (Asset

Turnover Ratio) from 0.42 to 0.52, although this figure lags behind international standards.

(This ratio for the US steel industry was 1.2 during the period 1975-1993)8. This

improvement indicates that the industry is utilizing its assets more efficiently and/or is

shedding assets. RONW (Post-Tax), as depicted in Figure 5, has plummeted from a + 3%

return in 1997-1998 to 0.9% before making a partial recovery to 0.3% in 2001-2002. This

indicates that the industry in general is eroding its net worth, losing money and thus,

becoming unattractive to the equity investors.

2.1.12 UNEXPLORED RURAL MARKETS

The Indian rural sector remains fairly unexposed to their multi-faceted use of steel.

The rural market was identified as a potential area of significant steel consumption way back

in the year 1976 itself. However, forceful steps were not taken to penetrate this segment.

Enhancing applications in rural areas assumes a much greater significance now for increasing

per capital consumption of steel. The usage of steel in cost effective manner is possible in the

area of housing, fencing, structures and other possible applications where steel can substitute

other materials which not only could bring about advantages to users but is also desirable for

conservation of forest resources.

2.1.13 STEEL PRICES

Following de-regulation of prices for integrated steel plants in 1991-92, the domestic

prices of steel have become market-determined. Market prices remain in step with

international prices, though generally lower. During industry downturns, prices fall and

during upturns, they rise. While rationalization of the customs and excise duty structure is

aimed primarily at reducing fiscal and revenue deficits, it has an indirect influence on

consumer prices. At present, there are around three thousand units manufacturing steel and

steel products, which are marketed by over 100,000 traders for ultimate consumers. This

dispersal of the distribution chain has been the principal reason why no price regulation of the

steel trade has ever been in force. Government has recently set up a Competition Commission

to look into complaints of monopolistic pricing.

Steel futures: The cyclical nature of the steel industry deters fresh investments due to

risks of recession. The mismatch between demand and supply also leads to price volatility

witnessed during recent times. Stagnation in steel prices for long periods followed by sudden



spurt also affects the consumers and the infrastructure industry. Therefore, the efforts of

various stakeholders to develop risk-hedging instruments like futures and derivatives would

be supported.

2.1.14 HUMAN RESOURCES

The anticipated steel production of 110 mT by 2020 would require an additional

workforce of 220,000 after accounting for the expected productivity improvements.7 Further

the creation of 1 man-year of employment in the steel industry generates an additional 3.5

man-years of employment elsewhere in the economy due to its strong linkages with other

sectors such as transport, mining, construction, machinery, and steel fabrication. The total

additional employment generated in the economy due to expected production of 110 mT by

2020 would be around 1 million.

The profile of the required human resources will have a larger share of the skilled and

semi-skilled labour force. It is a matter of concern that availability of scientists, engineers and

technicians per thousand of population in India is 7.05 compared to 113 in Japan, 90 in U.K.,

53 in Korea, 54 in Australia and 85 in Germany.8 Further, the task is not limited to increase

in the stock of technical manpower. The technical and professional institutes of the country

would also be required to impart new competencies and capabilities in tune with changes in

technology and the needs of globalization. The existing training and research institutes under

the Ministry of Steel would be brought under an umbrella organization with representation

from each segment of the industry. The functions of this organization would include (a)

suitable training programmes especially for the secondary small scale units, (b) promotion of

steel consumption through dissemination of information on availability and suitability of steel

for various applications, and (c) collection and analysis of data on important parameters of

the industry.

2.1.15 TECHNOLOGIES, RESEARCH AND DEVELOPMENT

Though the choice of technology will be determined by entrepreneurs based on

techno-economic considerations, the Government would encourage adoption of technologies,

which:

• Have synergy with the natural resource endowments of the country.

• They are conducive to production of high-end and special steel required for

sophisticated industrial and scientific applications



• Minimize damage to the environment at various stages of steel making and mining.

• Optimize resource utilization.

• Facilitate modernization of the steel industry so as to achieve global standards of

productivity and efficiency.

• Development of front end and strategic steel based materials.

India‟s expenditure on Research and Development has been negligible not only in

absolute terms but also as a percentage of GNP at 0.86%. This can be compared to the

developed world with an average ratio of 2.5%. In the case of steel industry, the ratio of

expenditure on R&D as a percentage of turnovers is only 0.26%.

The low priority to indigenous R&D has given rise to adoption of technologies that

are more suited to conditions prevailing in the developed world. For example, resource

position of raw materials requires development of technologies, which can use indigenous

coking coals and non-coking coals and for improvement in quality of high alumina Indian

iron ore. But lack of innovation and adaptation to Indian conditions is resulting in large-scale

import of coking coal and low performance in iron making. Aggressive R&D efforts would,

therefore, be mounted to create manufacturing capability for special types of steel, substitute

coking coal, enrichment and agglomeration of iron ore fines, develop new products suited to

rural needs, enhance material and energy efficiency, utilize waste, and arrest environmental

degradation. Public sector steel companies would enhance R&D expenditure in the coming

years to finance internal R&D efforts and sponsor outside research, which may provide a

framework for inter-disciplinary cooperation with the private sector across national

boundaries. Government‟s contribution to fostering basic and applied R&D will be enhanced

2.1.16 STEEL INDUSTRY-MAJOR PROBLEMS AND CONCERNS

The Indian steel manufacturers are faced with some major problems and concerns,

which work as inhibiting factors to their effort towards gaining the competitive edge. A few

of these are: Un remunerative Prices Stagnating demand, domestic oversupply and falling

prices in the last four years have hit Indian steel makers. Barring the sporadic rise in demand

in the recent months, it has suffered from UN remunerative prices to the extent that

companies have been finding it difficult to maintain capital costs. Stagnating Demand for

Steel According to McKinney and Co the domestic steel industry is set to witness a 33% over

capacity in the hot rolled coil



2.1.17 ONGOING CHANGES IN THE IRON AND STEEL INDUSTRY

The ongoing trend of expanding and modernizing steel production is expected to

maintain in the future. Major investment and expansion projects are currently underway that

will substantially increase the availability of steel on domestic as well as international

markets. With the addition of two newly set up integrated steel plants, crude steel production

capacity in the country will reach 30 Mt by the year 2000 (as opposed to 20.77 Mt as of

1995). Future production of crude steel has been estimated regressing crude steel production

on

a) GDP total and

b) GDP industry.

GDP total is assumed to increase at its 1990-95 trend rate of 5.4% p.a., while GDP

industry is assumed to grow at 6.2% p.a. (1990-95 trend rates). Projections based on these

assumptions as well as the average of the two production estimates are given in Table 4.1.

Regressing crude steel production on GDP iron& steel showed lower explanatory power and

did not yield diverging predictions. Detailed regression results are presented in Appendix C.



COMPANY PROFILE



COMPANY PROFILE

Vision

To be a continuously growing world class company we shall

Harness our growth potential and sustain profitable growth.

Deliver high quality and cost competitive products and be the first choice of

customers.

Create an inspiring work environment to unleash the creative energy of people.

Achieve excellence in enterprise management.

Be respected corporate citizen, ensure clean and green environment and develop

vibrant communities around us.

Mission

To attain 16 million ton liquid steel capacity through technological up-gradation,

operational efficiency and expansion; to produce steel at international standards of

cost and quality; and to meet the aspirations of the stakeholders.

Objectives

Expand plant capacity to 6.3 Mt by 2008-09, with the mission to expand further in

subsequent phases as per the corporate plan.

Sustain gross margin to turnover ratio>25%.

Be amongst top five lowest cost liquid steel producers in the world by 2009-10.

Achieve higher levels of customer satisfaction than competitors.

Instill right attitude amongst employees and facilitate them to excel in their

professional, personal and social life.

Be recognized as an excellent business organization by 2008-09.

Be proactive in conserving environment, maintaining high levels of safety and

addressing social concerns.

2.2.1 PROFILE OF VIZAG STEEL PLANT

To meet the growing domestic needs of steel, the decision of the Government of India

to set up an integrated Steel Plant at Visakhapatnam was announced by the Prime committee

chooses the site near Balacheruvu creek and the prime minister did the formal inauguration



and laid the foundation stone on 20th

January 1971. The consultant, M/s M.N.Dastur and

Company ltd., submitted a techno-economic feasibility report for the plant, with an annual

capacity of about 3 million tones of liquid steel, in October 1977. The service examined the

detailed project report prepared by Dastur Company and offered Technical and Economic

operation for the same. The government and erstwhile USSR signed agreement on June 12th

1979, for co-operation in setting up a 3.4 million tones integrated steel plant at

Visakhapatnam. In terms of this agreement, soviets and Indian design organization revised

the earlier detailed project report of Dastur Co., jointly and a comprehensive revised detailed

project report for VSP was submitted in November 1980. A new company i.e. Rashtriya

Ispact Nigam Ltd. (RINL) was incorporated to have independent decision taking facility

with more concentration on this particular unit. The construction of the project commenced

in 1982 with a schedule of 4 and 6 year for the first and second stage respectively. During

construction due to inadequate found availability, the project could not be adhered to,

resulting in huge cost and time overruns. In a bid to reduce the capital investment

Rationalized concept was adopted in 1985. As per this one steel melt shop and one rolling

mill i.e. the universal beam mill were dropped. The other steel melt shop of 2.2 MTPA of

liquid steel without any additional facilities. The Honorable Prime Minister

Sri.P.V.Narasimha Rao dedicated the plant to the Nation on 1st August 1992. Unlike other

integrated steel plants in the country. New technology, large-scale computerization and

automation etc., are incorporated in the plant. To operate the plant at international levels and

attains such labor productivity; the total manning of the organization has been limited to

17500 employees. The plant has a capacity of producing 3.0 MT of liquid Steel and 2.656

MT saleable steel.

2.2.2 HISTORY OF THE VIZAG STEEL PLANT

The decision of the government of India to set up an integrated steel plant at

Visakhapatnam was announced in parliament by the Prime Minister Smt.Indira Gandhi on

17th

April 1970. The selection committee chose the site near balacheruvu creak and the

prime minister did the formal inauguration on January 20, 1971. The Consultant,

M/S.M.N.DASTUR & company private limited submitted a techno economic feasibility

report in February 1972, and a detailed project report for the plant, with an annual capacity

of about 3 million tone of liquid steel in October, 1977. In setting up the 3.4 million tones

integrated steel plant at Visakhapatnam. In terms of this agreement the earlier DPR of



Dastur & Co was revised jointly by Soviets and India design organizing and a

comprehensive revised DPR (CRDPR) for VSP was submitted in November 1971.

The project was estimated to cost Rs. 8397.28 corers, based on prices as in the 4th

quarter of 1981. However, during the implementation of the project it was observed that the

project cost has increased substantially over the sanctioned cost, mainly due to prices

escalations and under provision of DPR estimates. In view of these and the critical fund

situation, alternatives for implementation of the project with rationalization of the approved

concept were studied in 1986. Under the rationalized concept 3.0 million tones of liquid

steel to be produced in a year and the project is estimated to cost Rs.5822.17cr as on fourth

quarter of 1987.

2.2.3 REASONS FOR ESTABLISHMENT

All the steel plants in India were located in the non coastal area of the country;

because of that reason the plant authorities were incurring high import and export expenses

in the form of tax besides the transportation cost of the raw materials, finished products,

spares and other equipments for various purposes. The concern authority has gone in deep

discussion to reduce this type of cost for at least to the latest steel plant for this reason and

the political threat for locating the steel plant in Visakhapatnam are the main points.

Compared to the other steel plants in India it is the 1st shore based steel plant.

In the year 1979-80 the construction took high speed and in following year i.e.

1981 contract signed with Soviet Union for preparation of working drawing for coke

ovens, blast furnace and sinter plant.

1982, there were drastic changes in the management of VSP i.e. from SAIL to RINL.

During the year 1985, Govt of India thought of dispensing with the scheme of

installing of steel plant at Visakhapatnam once for all, because of high capital cost of the

exercise and very own phase getting returns on the investment. At his stage there were

around 30 to 35 thousand contract labours working in the construction under various

contract jobs.

In the early stages, the Govt. has given assurances to the people that they will be

given jobs in the steel plant whose lands are lost in the acquisition. The total area gathered

by the steel plant, authority is 27000 acres. The land owners in this area were most of them

farmers. Most of the farmers are uneducated. This type of people is around 6000 that is

performing different non technical, inexpensive and transportive etc.



2.2.4 INFRASTRUCTURE OF VISAKHAPATNAM STEEL PALNT

a) Location and General layout

The plant is located on the coast of Bay of Bengal, 16 kms to the South – West of the

Visakhapatnam port. It lays between the northern boundaries of the national highway No.5

from Chennai to Kolkata and 7 kms to the south west Howrah – Chennai railway line.

b) Climate

Visakhapatnam has warm and humid climate. April to June is the warmest months of the

year and December to February are the coldest months. The benefits from he South west

monsoon and he northeast monsoons. The average annual rainfall is 873.6 mm. Highest

mean monthly maximum temperature is 37.8 deg. C.

2.2.5 MAJOR PLANT FACILITIES

VSP has the following production facilities

Three coke ovens batteries of 67 ovens, each having 41.6 m3 volumes.

Two sinter machines of 312 sq.m area.

Two blast furnace of 3200 m3 useful volumes.

Steel melting shop with three L.D. converters ( two operating and one standby –by of 150

tons each of capacity each and 6nos. of four strand continuous blooms casters

Light and medium merchant mill (LMMM) of 7,10,000 tones per year capacity

Wire rod mills ( WRM) of 8,50,000 ones per capacity

A. Modern Technology

VSP is the most sophisticated and modern plant in the country. Modern technology

has been adopted in many areas of production some of them for the first time in the country.

Among them are

Selective crushing of coal

7-meter tall coke ovens

Dry quenching of coke

On ground blending of sinter base mix

Conveyor charging and bell less top for blast furnace

100% continuous casting of liquid steel

Gas expansion turbine for power generation utilizing blast furnace top gas pressure

Hot metal desulphurization



Extensive treatment facilities of effluents for ensuring proper environmental protection

Computerization for process control

Sophisticated high speed and high

B. Major Units of VSP

The seven major units of VSP, which are successfully running in the production of

steel, and Pig iron, are:

C. Coke Ovens & Coal chemicals Plant

Coking coal after selective crushing and proper blending is subjected to destructive

distillation (heating in the absence of air) in the Coke Ovens. After heating for nearly a period

of 16-18 hours at a temperature of about 1100 degree C, Coke is obtained and is used as a

fuel as well as reducing agent in the Blast Furnace. The Coke Ovens of VSP are engineering

feats by themselves. They are the tallest ovens meter constructed in the country. The Plant

has 3 batteries of 7 mtr. Another feature is the dry cooling of coke carried out by the inert gas

nitrogen thus, reducing pollution considerably. Besides bio-chemical plant separately

undertakes the treatment of effluents, by products like benzene, toluene, xylene, naphthalene,

coal tar, creosote oil, pitch, and ammonium gas, VSP produces, among other by- products,

pushkala a prime fertilizer based on ammonium sulphate.

D. Steel Melt Shop & Continuous Casting

There are Top blown converters each of 133cu.m Volume, produce a total of 2.7

million tones of liquid steel per annum. This liquid steel thus produced is casted in six-4

strand bloom casters.

A special feature in energy conservation is the collection of Converter gas to be used

as a fuel in the plant. The entire molten steel as VSP is continuously cast at the radial type

continuous casting machines resulted in significant energy conservation and better quality

steel. 100% Continuous casting on such a large scale has been conceived for the first time in

India.

E. Rolling Mills

The cast blooms from continuous casting department are heated and rolled in the three

high speed and fully automated rolling mills namely light & Medium Merchant Mill, Wire

Rod Mill and Medium Merchant & Structural Mill, to produce various long products like



Reinforcement bars, rounds squares, flats, angles, channels billets, wire rods etc.

Technologies adopted at Rolling Mills include world – class Steel work and Tem core

process.

2.2.6 SWOT ANALYSIS

The SWOT analysis of RINL brings forth the opportunities and threats facing RINL,

with a view to buildings up on the strengths, exploiting the opportunities improving upon the

weakness and converting threats into opportunities. The strengths, weakness, opportunities

and threats of RINL are as under.

S- Strengths

State –of-the technology

High commitment to achieve capacity levels

Areas of excellence

Economies of scale

High expansion potential

Strong commitment to conserve environment

W-Weaknesses

High capital rated charges

Low return product –mix

Productivity below international levels

Practices not as per with international standards

O-Opportunities

Shore based

Sizeable export markets

Access to import resources

Proximity to southern markets

Increasing domestic demand due to thrust on infrastructure development

T- Threats

Availability of Iron ore & coal

Rising input costs

Increasing competition



Sensitive to exchange rate variation

Possibility of import duties declining further.

Excise duties continue to be high

Lack of alternative sources for major raw materials

Major market place (north & west) located far off

Infrastructure continues to be inadequate.

VSP‟s State – of –the –art technology, high expansion potential and economies of scale

would be utilized for offsetting the disadvantages of low return product – mix and high

capital related charges. Shore based location of the company would promoted export and

import of quality raw materials. Proximity of VSP to southern make can help in capturing

larger market share in south. VSP would meet the increasing competition through its quality

products and customer orientation.

2.2.7 DESIGN AND ENGINEERING

The soviet design organization, GIPROMETS designed the coke oven and coal

chemical plant (excluding the 7-meter tall battery portion) sinter plant and blast furnace.

MECON of Ranchi engineered the 7-meter tall coke oven batteries with dry quenching.

Dastur & Co. has designed the remaining facilities.

a. Raw Material

Raw Material Source

Iron ore lumps & fines. Bailadilla, MP.

BF limestone. Jaggayyapeta, A.P.

SMS lime Stone. Dubai

BF Dolomite. Madharam, A.P.

SMS Dolomite. Madharam, A.P.

Manganese ore. Chipurupalli, A.P.

Boiler coal. Talcher, Orissa.

Cocking coal. Australia.

Medium Cocking coal (MCC) Gidi / swang / rajarappa / kargli.

b. Employment Opportunities



At full operational stage, now Visakhapatnam Steel Plant has employed about 17369

technical staff. The indirect employment due to various ancillary units‟ development and

other services is much more.

c. Training and Development

RINL believes that the employees are its assets and strives to realize their potential in

full for mutual advantage.

A trained cadre of technical operative personnel and managerial cadre are provided

for the successful commissioning and operation of a large steel plant like VSP.

A training and development centre with facilities is available to develop trained cadre

of technical personnel and managerial cadre.

Employees are sent to other steel plants on short duration tours to find solutions to the

various issues facing the company.

Employees are also sent to suppliers manufacturing units.

VSP provides training programmer for enhancing their knowledge.

d. Township

A Modern township with all amenities has been developed adjacent to the steel plant

site, to house the plant employees. The township is having protected drinking water supply,

water borne sanitation, black top roads, schools hospitals, welfare centers, shopping centers,

community facilities, parks etc.

e. Water supply:

Operational water requirement of 36 mgd is being met from the Yeleru water supply

scheme.

f. Power supply:

Operation power requirement of 180 to 200 MW is being met through captive power

plant. The capacity of the power plant is 286.5mw; VSP is exporting around 60MW Power

to APSEB.

g. Advertising

Visakhapatnam Steel Plant is also following advertising, which is one among the

promotional strategies.

Print media

Brochures and booklets

Posters and leaflets

Directories



Symbols of logs

Bill boards

Displays

2.2.8 MARKETING ACTIVITIES

Under integrated marketing some of the important activities of the marketing

management are as follows.

Collection of necessary information regarding marketing

Analysis of the data and drawing conclusion

Search and development stage of new marketing techniques

To chalk out detailed marketing programme

To implement that marketing programme

To coordinate between the wants of the customer‟s and their satisfaction.

2.2.9 CHANNELS OF DISTRIBUTION

Distribution channels can be characterized by the number of channel levels. Each

middle man who performs some work in bringing the product and title closer to final buyer

constitutes a channels level.

2.2.10 PROMOTION

Promotion is the scientific techniques of communication regarding the quality of

products through which consumers get to know about the merit and demerits to mortgage

and to overall informing the potential customers promotional techniques i.e. advertising

publicity and personal selling should be used. These are the real and major tools of

promotional activities. According to W.J.Stantion “promotion is and exercise tin information

and influence”.

2.2.11 MAJOR AWARDS WON BY VSP

India Priyadarshini Vrikshmaitra for massive forestation of RINL1992-93.

National Energy conservation Award 2002, first prize in integrated sector.

Award from Andhra Pradesh pollution control Board for significant work on calendar

Production technologies.

Rolling shield on Environment Protection



Second prize for RINL‟s stalls at international Trade Fair.

Successful Re-Certificate or ISO 9001-2000

Udyog Excellence gold medal award for excellence in Steel Industry

Golden Peacock (1st Prize) “National Quality Award -1996.

Nehru Memorial National Award for Pollution control 1992-93 & 1993-94.

Best Management Award

Best Tax payer Award Govt- 0f Andhra Pradesh

Ispact Suraksha Puraskar (1st prize) for longest accident free period, 1991-1994.

Rolling shield for “Ecological protection” by ministry of information & Broad Casting.

Greenstick safety silver Award for 2002-2003 in Steel Sector for implementing best

safety standards.

INSAAN Organizational Excellence Award instituted by the Indian national suggestion

Schemes associated for the year 2004.

PM‟s Trophy for 2004-2005.



THEORETICAL BACKGROUND



2.3.1 INTRODUCTION TO CRM

Customer is the king, but that doesn‟t mean you are not. The new rule says body is a

king. It is a networking world – the society of persons.

Customer Relationship Management (CRM)is the latest tools from the information

technology repertoire which enables, promotes and develops business towards better

profitability

A brief introduction to CRM from the managerial perspective may be in order and

help us to appreciate its utility for the business organizations. The purpose of business is to

create customer.

The importance of the customer in a making breaking a business has led to greater

introspection, conceptual clarity and evolution of customer relationship management, both

as an art and science, and development of appropriate tools and software for enhancing

business and prolonging the product and business life cycle. This evolution has been a

consumer to a many time (repetitive), „long term relationship‟ management and importance

of the „life time value‟ of the customer.

CRM helps to seamlessly integrate the product and service to customer needs in a

better, faster and cheaper manner. CRM isn‟t a tool for electronic data. It has to use as a

„business strategy‟ to select and manage the most. Valuable customer relationships that give

the best results. CRM in thus not a technology but a strategy based on technology.

Customer „relationships‟ involve responsiveness, retention, refinement reliability and

empathy.

CRM says customers are business assets.

Customer relationship is developing and maintaining relationship between customer

and the company. Marketing activity should concentrate to build and enhance such

relationship.

CRM is the process of acquiring, relating and partnering with selective customers to

create superior value for the company and the end customer.

2.3.2 BENEFITS OF CRM

The benefits of customer relationship management are considered are abounded. it

allows organizations not only to retain customers, but enables more effective marketing,

creates intelligent opportunity for cross selling and open up the possibility of rapid

introduction of new brands and products.

The benefits like cost savings, revenue enhancement, and strategic impact



Increased sale revenues

Increased with rate improve since companies can with draw from unlikely or bad

deals earlier on in the sales process

Increased margins

Improved customer satisfaction ratings

Decreased general sales and marketing administration costs

Identifying and targeting the most profitable customers and having a deeper

knowledge of customers.

Getting more marketing or cross –selling opportunities.

Ability to manage marketing campaigns with clear objectives

Increased market share due to customer relationships

Decreased marketing and promotion expenses

Improved channel efficiency

Profitable cross selling and up selling opportunities to existing customer

Reduce service expenses with online self –service

Increased repeat business revenues from customized, personalized customer online

experience –maximize lifetime profit per customer

Increased return on service / support investments

Reduced service parts inventory

Reduced physical storage space of service parts

Increased customers satisfaction and responsiveness

Faster response to customer enquires

Increased efficiency through automation

Receiving customer feedback that leads to new and improved products or services

2.3.3 NEED FOR CRM

Customer relationship management currently, a much talked about issue is not a fad, but is

very vital for companies in the present highly competitive world. And they are,

Companies have to increasingly pursue a customer centric competitive strategy rather than

a product – centric one.

E- Customers demand constant access, immediate response, and a personalized touch.

Focus is shifting form supply chain to demand chain effectiveness.

Better understanding and intelligent management of customer relationships is essential for

survival.



2.3.4 THE 10 PRINCIPLES OF CUSTOMER RELATIONSHIP MANAGEMENT

1. Value segmentation

Based on customer needs, preferences, behaviors and economic potential, which provides

the basis for resource allocation decision in marketing, sales and service

2. Collaboration

The customer is involved in the specification, design and or delivery of a desire result.

3. Institutional memory

When a customer interacts which your company, everyone in the enterprise is award of prior

interactions, outstanding issues and pending opportunities.

4. Touch point alignment

Customers are able to do business with you through multiple channels, which are aligned to

customer need and value.

5. Real time information management

Employees have real time access to the right information in order to made customer based

decisions and resolve issues immediately

6. Closed loop processes

Integrated front and back office systems ensure that information and word flow carry

though the entire enterprises to their logical conclusion, closing the customer loop and

enabling continuous capture.

7. Customer scorecard

Employee performance requirements and measures and designed to drive specific customer

behavior

8. Listening posts

Forums to facilitate information sharing and learning about your customers that help you to

business with them learn from each other and provide valuable customers input to you

business.

9. One and done

Solving customer needs first time

10. Total experience management

Mapping all of the touch points between you and your customers and attempting to deliver a

consistent quality experience as perceived by the customer.



2.3.5 CRM OBJECTIVIES

The following are the specific objectives of CRM

Enable the company to quickly identify, contract, attract and acquire new customers.

Obtain a better understanding of the customers – their wants and needs

Define the appropriate product and service offering and match it to the customer‟s unique

needs.

Manage and optimize a company sales cycle.

Identify cross-selling and up-selling opportunities.

Increase retention of existing consumers through improved after sales, service and support

2.3.6 THE GOAL OF CRM

The idea of CRM is that it helps business use technology and human resources to gain

insight into the behaviors of customers and the value of those customers. If it so workers as

hopped, a business can:

Provide better customer service

Cross – sell products more effectively

Help sales staff close deals processes

Discover new customers

Increase customer revenues

Responses to campaigns

Shipping and fulfillment dates

Sales and purchase data

Account information

Web registration data

Service and support records

Demographic data

Web sales data

Make call centers more efficient

Improve customer satisfaction and retain customer base.

2.3.7 Why CRM?

The purpose of CRM is to improve marketing productivity and enhance mutual values by

increasing the marketing efficiency, CRM also helps in.

Reducing the burden of excessive customer costs.



Enhancing marketing effectiveness by carefully selecting customer for various programs.

Streamlining order processing and inventory management.

Personalizing the market offerings, based on the preference of the customer groups.

Building customer loyalty and commitment

2.3.8 THE KEYS TO SUCCESSFUL CRM IMPLEMENTATION

Break your CRM project down into manageable pieces by setting up pilot programs and

short-term milestones. Starting with a pilot project that incorporates all the necessary

departments and groups that gets projects rolling quickly but is small enough and flexible

enough to allow tinkering along the way.

Make sure your CRM plans include a scalable architecture framework

Don‟t underestimate how much data you might collect (there will be lots) and make and

then store EVERY piece of the data you can, but there is often no reason to store data.

Storing useless data wastes time and money.

Recognize the individuality of customers and respond appropriately. A CRM system

should for example, have built- in-pricing flexibility.

a. What causes CRM projects to fail?

From the beginning, lack of communication between everyone in the customer

relationship chain can lead to an incomplete picture of the customer poor communication

can lead to technology being implemented without proper support or buy-in from users.

b. Customer focus –an important ingredient:

Being customer focused also means maintaining constant communication and

dialogue with the customers. Enlightened organization practice closed loop communication

with their customers.

Communication must flow both ways, frequently and continuously and be structured in a

way that enables the organizations to monitor their performance from the customer

perspective.

2.3.9 CRM-POLICIES AND PROCEDURES AT VSP

PRO-ACTIVE STRATEGY FOR CUSTOMER SATISFACTION

1. Customer Policy

2. Norms for Customer Service

3. Customer Complaints Redresal Thro‟ Intranet



4. on Line Replies to Customer Query

5. Reward & Recognitions

2.3.10 CUSTOMER POLICY FOR VSP IS FORMULATED AS:

VSP Will Endeavour To Adopt A Customer Focus Approach At All Times With

Transparency.

VSP Will Strive To Meet More Than The Customer Needs And Expectations

Pertaining To Products, Quality, and Value For Money And Satisfaction.

VSP Greatly Values Its Relationship With Customers And Would Make Efforts At

Strengthening These Relations For Mutual Benefit.

Customer Policy Launched On VSP Portal www.Vizagsteel.Com

Laminated Boards With Customer Policy Prominently Displayed In All Regions,

Branches And Stockyards And Offices Of All Senior Officers At Headquarters.

2.3.11 NORMS FOR CUSTOMER SERVICE

Following Norms For Various Customer Service Activities Developed To Improve Speed Of

Response:

Activity Time

1.0 Issue of Offer Letter 10 MTS

2.0 Issue of MR/Do 10 MTS

3.0 Loading At Stock Yard 2 Hours

4.0 Issue of Dc-Cum-Invoice 15 MTS

5.0 Issue of Cheque for Refund Same Working Day

Laminated Boards Containing These Service Related Norms Prominently Displayed

At All Regions, Branches And Stockyards.

2.3.12 POLICIES & STRATEGIES OF CUSTOMERS

Gathering of information about Customer‟s needs and expectations is carried out via

numerous channels such as:

• Customer satisfaction survey.

• Customer Meet at HQ/RO/BSO.

• Visit to customer‟s works by sr. executives.

http://www.vizagsteel.com/



• Visit to customer‟s works by CFT.

• Interaction by front line MKTG executives.

• Visit by customers to our plant.

2.3.13 CUSTOMER FEEDBACK FLOWCHART



2.3.14 QUALITY COMPLAINT FLOW CHART

2.3.14 INITIATIVES TAKEN BY VSP TO IMPROVE CSL

• Initiatives Taken To Improve Customer Satisfaction Levels:

1. CRM Cell Is Formed In Feb., 2004 and CRM Executives Are Identified In Each

Branch One From Marketing And One From Finance.



2. By Special Campaign Suggestion Scheme. 725 Suggestions Were Received From

Employees During 2004-05.

3. Customer Policy Is Made For VSP.

4. Norms For Customer Service Activities Are Formulated And Displayed At All

Regions, Branches & Stockyards.

5. On Line Quality Complaint Settlement Is Launched In Intranet In All Branches To

Settle The Quality Complaints Quickly.

6. On Line Customer Query Module Is Launched In Our Web Site

Www.Vizagsteel.Com.

7. Action Plan Designed To Improve CSL Based On Feedback Survey Conducted By

IMRB, Org MARG And Internal Feedback.

8. Call Center Linked IVRS (Interactive Voice Response System) Is In Process for

Implementation.

2.3.16 CRM INITIATIVES PLANNED DURING 2009-2010

1. Introduction Of Customer Grievance Settlement Mechanism Planned With Immediate

Effect.

2. Aggressive Customer Contact Programme with Detailed Calendar for 2008-09 under

Preparation.

3. Implementation of E-Poll to Get Customer Feedback on Line.

4. Extension of Customer on Line Quality Complaints Settlement System To The Customer.

5. Opening Of A Call Center Linked With IVRS And Toll Free Numbers For Addressing

Customer Queries.

6. Information about Stocks and Prices to Customers Trough SMS.

7. Corporate Tune to Reinforce Identity of VSP under Process.

8. Provision of Tea/Coffee Vending Machines at Branches.

9. Presentation of Bouquets to Important Customers on Birth Days/Wedding Anniversaries.

2.3.17 CRM ACTIVITIES INITIATED AT VSP

In order to give thrust to customer services activities in VSP, A central CRM cell was

constituted at head quarter, marketing along with CRM cell in each region and branch. The

very first initiative taken by CRM cell was to adopt well defined customer policy was

widely circulated and displayed in all marketing officers of all senior officers of VSP.




In order to impalement the customer policy, a number of CRM initiates have been

implemented by VSP.

Some of which are as follows,

1) System of obtaining regular customer feedback introduced.

2) Norms adopted for various customer related activates like issue offer litter / delivery order,

loading at stockyard and refund etc.

3) For expediting settlement of customer customer‟s quality complaints paper work in

processing of quality complaints and provide an efficiency and expeditious mechanism for

settlement of quality complaints

4) System of e-poll from customer queries on VSP‟S portal within 24 hour has been developed

and is likely to be. Hoisted shortly.

5) System of customer queries on VSP‟s portal within 24 hours has been developed and is

likely to be hoisted shortly Ministry Of steel had conducted a customer opinion survey

among the plants in India through an external agency IMRB business and industrial research

division.

Approach

Customer relation management should be pervasive in all sections of VSP

Identify parameters which improve customer‟s satisfaction levels

Collect feed back in structure way continuously on above parameters

Analyze the feedback and make action plan to improve satisfaction levels where CSI

score is low

Monitor the action plan for implementation

Compare the corresponding factors in next survey to confirm compliance



CHAPTER-3

RESEARCH METHODOLOGY



RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM

The problem identified for the present study can be stated as “identifying the existing

CRM practices at VSP and their contribution to enhance effectiveness of customer

satisfaction.”

3.1 OBJECTIVES OF THE STUDY

3.4.1 Primary objective:

A study on effectiveness of C.R.M practices of Rastriya Ispat Nigam Limited

3.4.2 Secondary objective:

To identify existing practices, policies and initiatives of C.R.M at V.S.P

To collect feedback from existing VSP customers in CRM

Collect opinion of CRM executives regards to VSP

To determine the existing satisfaction levels of VSP‟s customers

To identify the strategies currently being employed by VSP for CRM.

Analyzing of collected data regards to CRM practices

To offer recommendations and suggestions, if any, for improvement of customer

relations at VSP

3.2 NEED FOR THE STUDY

Customer relationships assume importance in the context of marketing today.

Organizations are today are looking beyond transactions with customers, they are

strategically building long-term relationships with their customers. In this context the study

assumes importance for Visakhapatnam Steel Plant in that the organization has started in a

small way towards customer relationships management. The organization is now on the

verge of going out in a big way into CRM, and the study is not aimed at helping the

organization review its present strategies and initiatives, in a bid to build on it.

3.3 METHODOLOGY

Data can be collected from two sources:

1 Primary data

2 Secondary data



Primary data: collected from the VSP marketing executives and customers.

Primary data for the study consists of

(i) Feedback from VSP customers on CRM Practices of VSP through questionnaire

(ii) Opinion of CRM executives on existing practices, through a formal interview.

Secondary data:

Collected data from the VSP marketing surveys and opinions from VSP executives.

The secondary data for the study consists of

(i) the existing practices/process, policies and initiatives for CRM at VSP,

(ii) the strategies being currently employed by VSP for CRM,

(iii) Previous records on customer satisfaction and complaints at VSP.

3.4 ANALYSIS METHODOLOGY

1. Overall Important Index:

Every macro parameter composes of several micro parameters. Importance rating

against each parameter was taken on a 5 point scale, with 1 being least importance

and 5 being most importance. A rating of 2 and above was considered to be important

for a micro factor and a count of all those respondents who gave a rating of 2 and

above are taken. The importance index calculated was actually the proportion of the

total respondents to whom the particular micro attribute was important.

Thus, for every micro attribute it was calculated as:

= (Count of respondents who rated 2 or above)/ Total respondents

Similarly, the overall important index for the entire Macro parameter is calculated as:

= (Count of respondents who rated 2 or above for micro attribute 1 + Count of

respondents who rayed 2 or above for micro attribute 2 +…. Attribute n) / (Total

respondents for attribute 1 + Total respondents 2 +…. Attribute n)

2. Overall Customer Satisfaction Index:

Satisfaction rating was taken on a 5 point scale, with 1 = Extremely Dissatisfied and 5

= Extremely Satisfied. A rating of 1 to 5 is considered for a Micro factor or Multiplier

factor and a count of all those respondents who gave their ratings.

CSI for a macro parameter was calculated as:



= [(Count of respondents who rated 1 to 5 for micro parameter 1)*(Importance

index of micro parameter 1) + (Count of respondents who rated 1 to 5 for micro

parameter 2) * (Importance index of micro parameter 2) + …. Attribute n) /

[(Sum of the respondents for micro attributes consisting the macro attribute) *

(Important index)]

3. Combined CSI:

This procedure was followed for calculating the satisfaction score of the users (Total

user CSI) and Trader (Total Trader CSI). Thus total CSI and total trader CSI were

calculated independently. The combined satisfaction score was arrived at by taking a

weighted average of these two scores, using the proportion of the number of trader

and user in the overall sample as weights.

Thus, the total satisfaction for each company was calculated as,

= (Total user CSI for the plant * Total user sample overall) + (Total Trader CSI

for the plant * Total trader sample overall) / (Total user sample overall + Total

trader sample overall)

3.5 SCOPE

Conceptual scope:-The study include is process/practices, polices and implementation of

CRM at VSPs.

Physical scope:-This study includes only Vishakhapatnam city customers

3.6 LIMITATIONS OF THE STUDY

The study was completed in a span of 8 weeks. Based on the objective of the study,

great care was taken in the collection of data throughout the study.

The following are some of the limitations during the study.

The study was limited to the customers relationship management activities held in

vizag steel plant.

The study is being conducted only in the Visakhapatnam steel plant and city.

In-depth analysis was not made due to limited availability of time.

The selected sample may or may not represent the entire workforce.

The responses obtained as a result of survey may not true

Wide area of customers.



CHAPTER-4

OBSERVATIONS & ANALYSIS



QUESTIONNAIRES ON CRM FOR CUSTOMERS

1. What is the main motivator of Customer Satisfaction?

FINDINGS:

Alternatives No. of respondents Percentage of

respondents

Price 8 32%

Quality 7 28%

CRM 6 24%

All of Them 4 16%

Total 25 100%

INFERENCE:

Respondents feel that all of the above mentioned options i.e.

Price, Quantity and Customer Relation Management are equally

important for Customer Satisfaction.

32%

28%

24%

16%

1

Price Quality CRM All of Them



2. How will you rate the Consistency in Product Quality?

FINDINGS:


respondents

Excellent 6 24%

Very Good 4 16%

Good 5 20%

Satisfactory 7 28%

Poor 3 12%

Total 25% 100%

INFERENCE:

24% of customers feel that the product quality is Excellent

where as 28% of the respondents say that they are satisfied with

the consistency in Product Quality.

24%

16%

20%

28%

12%

1

Excellent Very Good Good Satisfactory Poor



3. Issue of Test Certificates being given for the materials delivered along with

the vehicle

FINDINGS:


respondents

Excellent 3 12%

Very Good 5 20%

Good 4 16%

Satisfactory 6 24%

Poor 7 28%

Total 25% 100%

INFERENCE:

It seems to be like many of the customers are not satisfied with

the issue of test certificates which are given along with the

materials at the time of delivery of the goods.

12%

20%

16%

24%

28%

1




4. How do you rate the Packaging, Color, Coding and Strapping of the

product?

FINDINGS:


respondents

Excellent 3 12%

Very Good 5 20%

Good 4 16%

Satisfactory 10 40%

Poor 3 12%

Total 25% 100%

INFERENCE:

Most of the customers, about 40% say that the packing, color,

coding and strapping of the products just reached only their

satisfaction levels.

12%

20%

16%

40%

12%

1




5. Information on Prices of the products and discounts given on them?

FINDINGS:


respondents

Excellent 5 20%

Very Good 5 20%

Good 4 16%

Satisfactory 6 24%

Poor 5 20%

Total 25% 100%

INFERENCE:

There is equality in the percentages of all the five levels in

providing the information on prices of the products and the

discounts given on them.

20% 20%

16%

24%

20%

1




6. How do you rate the intimation about the status of Pending Orders?

FINDINGS:


respondents

Excellent 3 12%

Very Good 5 20%

Good 4 16%

Satisfactory 10 40%

Poor 3 12%

Total 25% 100%

INFERENCE:

Most of the customers feel that the intimation about the status of

Pending orders is satisfactory.

12%

20%

16%

40%

12%

1




7. How do you rate the information on Rolling, Dispatch Plan and stock in the

yard?

FINDINGS:


respondents

Excellent 5 20%

Very Good 4 16%

Good 8 32%

Satisfactory 5 20%

Poor 3 12%

Total 25% 100%

INFERENCE:

There is 32% of good response from the customers saying that

VSP provides information on rolling, dispatch and stock in the

yard.

20%

16%

32%

20%

12%

1




8. How do you rate the Responsiveness of the Sales person towards

customer’s request?

FINDINGS:


respondents

Excellent 5 20%

Very Good 5 20%

Good 6 24%

Satisfactory 5 20%

Poor 4 16%

Total 25% 100%

INFERENCE:

There is a good rate of response from the sales person to wards

the customer as 20% people say excellent, 20% say very good

and 24% say good.

20% 20%

24%

20%

16%

1




9. How about the timely Reconciliation of Accounts/ Refunds?

FINDINGS:


respondents

Excellent 6 24%

Very Good 6 24%

Good 4 16%

Satisfactory 7 28%

Poor 2 8%

Total 25% 100%

INFERENCE:

Customers feel that reconciliation of accounts and refunds is

above average since 44% say its satisfactory and above, where as

24% says its very good and excellent.

24% 24%

16%

28%

8%

1




10. The satisfaction level of the operations carried out at the Stockyard?

FINDINGS:


respondents

Excellent 5 20%

Very Good 5 20%

Good 4 16%

Satisfactory 7 28%

Poor 4 16%

Total 25% 100%

INFERENCE:

Good response from the customers as 56% of the people say the

operations carried out at stockyard are very good.

20% 20%

16%

28%

16%

1




11. How do you rate the time taken to issue Money Receipt/ Offer Letter/

Delivery Order?

FINDINGS:


respondents

Excellent 9 36%

Very Good 5 20%

Good 4 16%

Satisfactory 5 20%

Poor 2 8%

Total 25% 100%

INFERENCE:

VSP issues money receipt, offer letter and delivery order on time

since 36% of customers feel its excellent.

36%

20%

16%

20%

8%

1




12. How do you feel about the time taken for the delivery of final products?

FINDINGS:


respondents

Excellent 3 12%

Very Good 5 20%

Good 5 20%

Satisfactory 7 28%

Poor 5 20%

Total 25% 100%

INFERENCE:

Delivery of final goods depends on the manufacturing process

and availibility of orders and stock in the yard, customers give a

satisfied feed back but 20% of customers still feel that the

delivery process is poor.

12%

20% 20%

28%

20%

1




13. How do you rate the credit terms and rate of interest charged by VSP?

FINDINGS:


respondents

Excellent 7 28%

Very Good 3 12%

Good 6 24%

Satisfactory 7 28%

Poor 2 8%

Total 25% 100%

INFERENCE:

The credit terms and rate of interest charged by vsp is

reasonable, as 28% customers says excellent and 24% says good

and 28% feels satisfied.

28%

12%

24%

28%

8%

1




14. How will you rate the processing of Cheque and credit facilities at VSP?

FINDINGS:


respondents

Excellent 7 28%

Very Good 3 12%

Good 5 20%

Satisfactory 8 32%

Poor 2 8%

Total 25% 100%

INFERENCE:

The process of cheque and credit facilities depends on time to

time according to the policies initiated at vsp, the rating given by

customers is good.

28%

12%

20%

32%

8%

1




15. How would you rate the effectiveness of the Quality complaint resolution

system?

FINDINGS:


respondents

Excellent 3 12%

Very Good 5 20%

Good 4 16%

Satisfactory 8 32%

Poor 5 20%

Total 25% 100%

INFERENCE:

Customers expect a quick and good solution for the complaints

raised by them, the effectiveness of quality complaint resolution

system is satisfactory but 20% of customers feels that it is poor.

12%

20%

16%

32%

20%

1




CUSTOMER SATISFACTION INDEX



CUSTOMER SATISFACTION INDEX

1. Motivator of Customer Satisfaction

Alternatives No. of respondents Multiplier Factor Result/Score

Price 8 4 32

Quality 7 3 21

CRM 6 2 12

All of Them 4 1 4

Total 25 - 69

CSI = Total Score/ No of Respondants = 69/25 = 2.76

2. Consistency in Product Quality?


Excellent 6 5 30

Very Good 4 4 16

Good 5 3 15

Satisfactory 7 2 14

Poor 3 1 3

Total 25 - 78


3. Issue of Test Certificates along with the vehicle


Excellent 3 5 15

Very Good 5 4 20

Good 4 3 12

Satisfactory 6 2 12

Poor 7 1 7

Total 25 - 66




4. Packing color, Coding and Straping of products


Excellent 3 5 15

Very Good 5 4 20

Good 4 3 12

Satisfactory 10 2 20

Poor 3 1 3

Total 25 - 70


5. Prices of products and discounts given on them


Excellent 5 5 25

Very Good 5 4 20

Good 4 3 12

Satisfactory 6 2 12

Poor 5 1 5

Total 25 - 74


6. Status of Pending order


Excellent 3 5 15

Very Good 5 4 20

Good 4 3 12

Satisfactory 10 2 20

Poor 3 1 3

Total 25 - 70




7. Info on Rolling, Dispatch plan and stock in yard


Excellent 5 5 25

Very Good 4 4 16

Good 8 3 24

Satisfactory 5 2 10

Poor 3 1 3

Total 25 - 78


8. Responsiveness of Sales person towards customer


Excellent 5 5 25

Very Good 5 4 20

Good 6 3 18

Satisfactory 5 2 10

Poor 4 1 4

Total 25 - 77


9. Timely reconcillation of Accounts/Refunds


Excellent 6 5 30

Very Good 6 4 24

Good 4 3 12

Satisfactory 7 2 14

Poor 2 1 2

Total 25 - 82




10. Operations carried out at stockyard


Excellent 5 5 25

Very Good 5 4 20

Good 4 3 12

Satisfactory 7 2 14

Poor 4 1 4

Total 25 - 75


11. Issue of Money Receipt/ Offer Letter/ Delivery Order


Excellent 9 5 45

Very Good 5 4 20

Good 4 3 12

Satisfactory 5 2 10

Poor 2 1 2

Total 25 - 89


12. Time taken for the delivery of final products


Excellent 3 5 15

Very Good 5 4 20

Good 5 3 15

Satisfactory 7 2 14

Poor 5 1 5

Total 25 - 69




13. Credit terms and rate of interest charged by VSP


Excellent 7 5 35

Very Good 3 4 12

Good 6 3 18

Satisfactory 7 2 14

Poor 2 1 2

Total 25 - 81


14. Cheque and credit facilities at VSP


Excellent 7 5 35

Very Good 3 4 12

Good 5 3 15

Satisfactory 8 2 16

Poor 2 1 2

Total 25 - 80


15. Effectiveness of the Quality complaint resolution system


Excellent 3 5 15

Very Good 5 4 20

Good 4 3 12

Satisfactory 8 2 16

Poor 5 1 5

Total 25 - 68




OVERALL CUSTOMER SATISFACTION INDEX

Sl No Questions Individual CSI

1 Customer Satisfaction 2.76

2 Consistency in product quality 3.12

3 Issue of Test certificates 2.64

4 Packing, Color, Coding 2.80

5 Products and Discounts 2.96

6 Status of Pending orders 2.80

7 Rolling, Dispatch plan 3.12

8 Responsiveness of sales person 3.08

9 Reconciliation of Accounts/ Refunds 3.28

10 Operations at Stockyard 3.00

11 Money receipt, Offer letter, Delivery order 3.56

12 Delivery of final products 2.76

13 Credit terms and rate of interest 3.24

14 Cheque and credit facilities 3.20

15 Quality complaint resolution system 2.72

Total CSI 45.04

OVERALL CSI:

= Total CSI/ No of Questionary

= 45.04/15

= 3.0026

Percentage Calculation:

= (3.0026 / 5.0) * 100

= 60.05%



CHAPTER-5

FINDINGS



VSP-CRM Initiatives & Findings

1. Customer Policy related findings

CRM Cell is formed In Feb., 2004

Most of the policy guidelines don‟t find a clear place in implementation.

There is not enough focus on CRM in customer policy.

2. Process:-

VSP uses online query system for registering of complaints.

Duration for Customer‟s service responses in issuing, loading, refund of cheque.etc is

less than 1day.

Quality complaint flow chart is identified to have the following components, via,

registration, sample labeling, corrective action, and solving.

An exclusive customer contact calendar is used to maintain customer contact.

Interaction with customers is enabled at branch, region, and head quarters.

Quality complaint settlement module is launched through all the branches

3. Technologies

VSP does not use any CRM software for implantation.

VSP maintains a customer relationships portal to handle CRM with the following

components

a. Customer Query module

b. Customer Feedback module

c. Customer Registration module

d. Grievances Settlement Mechanism module

e. Quality Complaint System (QCS)

There are a number of weaknesses identifies with the content of these modules, the

details of which are extensively discussed in the analysis chapter of the report.

4. Implementation of CRM

Independent agencies and consultants are used for analyzing data.

VSP strive to achieve customer‟s satisfaction through quality and value for money &

customer relation.

http://www.vizagsteel.com/customer/custindex.asp

http://www.vizagsteel.com/customer/Grievances%20Mechanism.asp



Relationship marketing is oriented towards individual customers along with an

emotional engagement.

Customer event schedule is to be introduced.

Take the customer opinion surveys to generates the attitude on the company.

5. Executive’s opinion through Interview

The company is excessively concentrating on improving production targets; it is

giving less emphasis to customer relationships at the top level.

A formal procedure / process for CRM implementation is found to be absent at VSP,

the activity conducted is arbitrary.

Software is not being used for CRM implementation, the only form being used is a

webpage on the company site.

Customer information is not shared to all the departments.

6. Customer opinion

Customer is not kept informed from time to time on new arrivals and offers.

Test Certificates are not being given for the materials deliver along with the vehicle.

Credit Terms and Rate of Interest charged by VSP is reasonable.

All operations carried out at stock yard seem to be good.



CHAPTER-6

RECOMMENDATIONS



RECOMMENDATIONS:

VSP Wants To Introduce The CRM Software To Maintain Huge Crowd Customers

Expand plant capacity to 6.3 Mt by 2010-11, with the mission to expand further in

subsequent phases as per the corporate plan.

Be proactive in conserving environment, maintaining high levels of safety and

addressing social concerns

Personnel attention towards customer requirements without software facility

Need to take the fixed model to follow the same according to the time being

conditional terms

The VSP doesn‟t use any type of CRM software to fulfill the CRM terms& norms.

VSP need to have software to fulfill their customer‟s requirements

Software brings the high involvement procedure from top management to customer‟s

level.

It needs develop in high frequency of implications according to needs and

technological changes.

It will be more useful technically with the introduction of CRM software

The CRM software helps maintain the customers and their personnel requirements

which also help in time reduction.



CHAPTER-7

CONCLUSION



CONCLUSION:

In this chapter we present the conclusion of my research. The goal or this research

was to study the customer relationship management systems and practices on today‟s

customer retention endeavor; CRM has been a key element of the modern marketing in recent

years. All around the world companies in different sizes have been trying to utilize CRM

systems to help them with their competitive business. On the other hand because of vigorous

competition not only acquiring new customers is becoming difficult but also holding existing

customers is a quite challenging task

During our research we learned that it is a lot cheaper to keep existing customer in

level that constantly encourage them to stay with a company is a dynamic and meticulous job.

That is why computerized CRM system can play a critical role in success of a company. But

the way that CRM systems are used can make substantial different on the outcome. Along

with sales and marketing, all the other departments of a business should be involved in CRM

processes. A new emerging approach that recently has been attracting corporations is

customer value management. Their goal is to identify value that can be delivered to the

customer along with their products through their supportive processes and services.

For a successful relationship it is up to the company to perform customer‟s

profitability analysis. As a result this analysis, if a customer is not doing well with presented

products or services, there is an opportunity for us to find a better solution for that customer

before loosing it to competitors.

One of the other important facts I learned in this research was; a fundamental

principle of CRM is that all customers are not same. Another words, it is not possible to

attract and retain all customers with the same policy and treatment. And also I found that

VSP has been providing proper customer service in order to retain them for a long period.

Another important issue of my research was VSP was giving freedom for customer to

check the products quality of what they want. And also I found that there was a delay in

loading process and also compliant resolution process was taking much time



CHAPTER-8

ANNEXURE



Questions on CRM for Customers:

1. What is the main motivator of Customer Satisfaction

a) Price b) Quality c) CRM d) All of them

2. Why are u a loyal Customer of VSP, give a reason.

3. Are you satisfied with the CRM activities of VSP?

a) Totally satisfied b) Satisfied c) Not satisfied d) Can‟t say

4. Do the customer relation manager understanding the need of the Customers ?

a) Strongly agree b) Agree c) Disagree d) Can‟t Say

5. Do you think the Marketing Mangers of VSP Work to improve Their Relationship

with Customers?

a) Always b) Occasionally c) Rarely d) Never

6. How will you rate the Consistency in Product Quality

a) Excellent b) Very good c) Good d) Satisfactory e) Poor

7. Issue of Test Certificates being given for the materials delivered along with the

vehicle


8. How do you rate the Packaging, Color, Coding and Strapping of the product


9. Information on Prices of the products and discounts given on them


10. How do you rate the intimation about the status of Pending Orders


11. How do you rate the information on Rolling, Dispatch Plan and stock in the yard


12. How do you rate the Responsiveness of the Sales person towards customer‟s

request


13. How about the timely Reconciliation of Accounts/ Refunds


14. The satisfaction level of the operations carried out at the Stockyard




15. How do you rate the time taken to issue Money Receipt/ Offer Letter/ Delivery

Order


16. How do you feel about the time taken for the delivery of final products


17. How do you rate the credit terms and rate of interest charged by VSP


18. How will you rate the processing of Cheque and credit facilities at VSP


19. How would you rate the effectiveness of the Quality complaint resolution system


20. Within how many days do you expect the Quality complaints to be resolved?

a) 5days b) 10days c) 15days d) 20days

21. How often VSP executives visit your office/ factory.

a) Once in a month b) once in a quarter

c) Once in a half year d) once in a year

22. At what frequency customer meetings are conducted by VSP.

a) Once in a month b) once in a quarter

c) Once in a half year d) once in a year

23. Kindly mention one area of operations each about VSP.

Weakest Area:

Strongest Area:

24. What type of Customer are you.

a) Trader b) Project c) Actual User d) DLDS

25. Any suggestions to improve CRM at VSP.

*Name of the Customer:

*Email-id/ Contact no if any:

Signature of Customer

Note: (*) mark indicates optional.



CHAPTER-9

REFERENCES



BIBILOGRAPHY:

Text Books:

Philip Kotler (2002)

Marketing management prentice Hall of India, New Delhi. Eleventh edition.

Kothari C.R. (2003)

Research Methodology. Vishwa Prakasham, Mumbai.

Leon G. Shiffman and Leslie Lezar Kanuk (2003)

“Consumer Behavior”. Pearson Education, New Delhi.

WEBSITES:

www.vizagsteel.com

www.marketingprofs.com

www.incapltd.com

www.lelon.com.too

www.bseindia.com


http://www.marketingprofs.com/

http://www.incapltd.com/

http://www.lelon.com.too/

http://www.bseindia.com/

Documents

CRM Project 2011 GHCPReddy