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8/7/2019 Group4 Report
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CRM IN MAHINDRA & MAHINDRA
COMMERCIAL VEHICLE DIVISION
Submitted to: Submitted by:
Prof. Mukesh Chaturvedi Ankit Vijayvargiya
Anurag Verma
Ashvind Ratnakaran
Davis Louis
Mudabbir Hossain
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CRM IN M&M COMMERCIAL VEHICLE DIVISION
ABOUT THE M&M GROUP
Few groups can identify as closely with India's destiny and industrial progress as the Mahindra
Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had
the same aspirations and both experienced the inevitable troughs and crests in the journey
towards their goals. And both continue to march on the path to progress and global
recognition.The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United
States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of
the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle
that had proved its invincibility on the battlefields of World War II be ideal for India's rugged
terrain and its kutcharural roads?
Swift action followed this thought. The Mahindra brothers joined hands with a distinguished
gentleman called Ghulam Mohammed & on October 2nd, 1945, Mahindra & Mohammed wasset up as a franchise for assembling Jeeps from Willys, USA. Two years later, India became
an independent nation and Mahindra & Mohammed changed its name to Mahindra &
Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the first
Finance Minister of Pakistan. Since then, Mahindra & Mahindra has grown steadily in size
and stature and evolved into a Group that occupies a premier position in almost all key
sectors of the economy. The Group's history is studded with milestones. Each one taking the
Group forward.
The US $6 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra &
Mahindra is the only Indian company among the top tractor brands in the world. MahindrasFarm Equipment Sector has recently won the Japan Quality Medal, the only tractor company
worldwide to be bestowed this honour. It also holds the distinction of being the only tractor
company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility
vehicles in India. It made a milestone entry into the passenger car segment with the Logan.
The Group has a leading presence in key sectors of the Indian economy, including the
financial services, trade and logistics, automotive components, information technology, and
infrastructure development.
With over 62 years of manufacturing experience, the Mahindra Group has built a strong basein technology, engineering, marketing and distribution which are key to its evolution as a
customer-centric organization. The Group employs over 50,000 people and has several
state-of-the-art facilities in India and overseas.
The Mahindra Group has ambitious global aspirations and has a presence on five continents.
Mahindra products are today available on every continent except Antarctica. M&M has one
tractor manufacturing plant in China, three assembly plants in the United States and one at
Brisbane, Australia. It has made strategic acquisitions across the globe including Stokes
Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co GmbH (Germany). Its
global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and
Mahindra South Africa.
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M&M has entered into partnerships with international companies like Renault SA, France,
and International Truck and Engine Corporation, USA. Forbes has ranked the
Mahindra Group in its Top 200 list of the Worlds Most Reputable Companies and in the Top
10 list of Most Reputable Indian companies. Mahindra has recently been honoured with the
Bombay Chamber Good Corporate Citizen Award for 2006-07.
CUSTOMER RISHTEDARI FROM M&M
M&M started thinking about CRM not really as customer relationship management, but
as CRMM - as 'Customer Rishtedari from M&M'. Just changing the word from Relationship
to Rishtedarireally makes a big difference. Relation is nothing but rishtedari; and
relative, rishtedar. Take care of the customer, as you will do for any guest who comes to your
house. And, once you come to that realisation, you need no training in CRM. Let me get into
little bit detail of how M&M is trying to transform itself into a truly customer centricorganisation. One of the first difficulties that we faced was this age-old concept of internal
customers - R&D considered manufacturing as the customer, manufacturing considered
sales & marketing as the customer, and it was left to the Sales and Marketing to take care of
the end customer. I am sorry, but I do not believe in this concept of internal customers. All
these departments are part of the chain who should have only one goal- to serve the only
customer that finally matters; the customer has to be the person who is paying his or her
hard earned money to buy the products and the services. It sounds simple but changing this
mindset was a major task. A guy on the shop floor will say, "I never meet Mr Customer, how
can I think of him as my customer." Surely, we have managed to change this mindset. I hope,
the Mahindra dealers who are present here have begun to sense that change. In fact, the
other day a man from our plant saw a Mahindra vehicle stranded on the road. He stopped
and gave his own vehicle to the customer to proceed where he was going, and said, "I will
send your vehicle to the workshop and call you when the fault is fixed." This is not written in
any of our CRM handbooks, but it is a perfect example of how CRM is about heartware.
Another change that we have made is to align our goal for all M&M (Auto Sector) employees
with customer as the focus. 30 per cent of M&M's performance bonus depends on how
employees do in terms of customer satisfaction; and for all M&M dealers, 60 per cent of their
'MDEP's score, depends on how they perform in our customer focus processes. (MDEP is
Mahindra Dealer Excellence Programme). Yet another change is in the form of well-defined
process for taking care of the customer from the time he enters the showroom or theworkshop till the time he leaves the showroom/workshop. But, I repeat that while the
processes are important, they will not deliver customer relationship unless it comes from
mindset change, unless it comes from a desire from your heart. This kind of change in the
approach of M&M and its dealerships to customer relationship building has not been easy,
but has been worth it.
Let me walk through a few very effective but simple things that M&M has done in this
direction in the last couple of years. For example, the way M&M dealers are now delivering
vehicles is really becoming an emotional experience for the customer. Various dealers have
come up with different ways of making it an auspicious occasion for the customer. They areperforming puja to match the faith of the customer. There are a few dealers who actually
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have full-time Pujari in their showrooms and have different kinds of puja ingredients to
perform the puja. Once I was present at one of the dealerships when the puja was being
performed and I could see it as an occasion full of emotions for the customer.
Yet another thing M&M has done in customer relation building is the adoption of the concept
of happy horn that has been borrowed from Pizza Hut. As a result of these customer relationmeasures, M&M's performance in 2005 JD Power Sales Satisfaction Index and other
customer satisfaction surveys has seen a marked improvement. Mahindra and Mahindra
was the most improved brand in 2004 JD Power Sales Satisfaction Index, showing an
improvement of over forty points compared to the industry average of six points. In the CSI
too, M&M once again was the most improved brand, mustering thirty points in the
improvement score as against the industry average of three points. Similarly, M&M did
remarkably well in Total Customer Satisfaction (TCS) survey also.
EXISTING PRACTICES OF CRM IN M&M
Reminders of free servicing
The reminders for the free servicing are given to the customers according to the
database given by the company.
Send cards during festivals
This is a usual practice by all companies and diligently followed by M&M also.
Pujari
Owning a new vehicle is a great achievement and firstly Puja of the vehicle is done
before using it. To remove the hassle of arranging a Pujari, M&M dealerships havePujaris to conduct the rituals. This greatly affects customer relationship.
Referrals
Discounts on next servicing This is scheme to attract more customers
and existing customers who refer new customers get benefit for it. These
benefits are in the form of discounts on next servicing and other benefits like
free oil change depending on the number of new customers given by the
existing customer.
Gifts for drivers A concept of Indian Oil Ltd applied in south India forattracting the auto rickshaw drivers to their pumps by providing them with
shirts with Indian Oil printed on it. A similar concept is applied by M&M also in
their service station and it has helped a lot for increasing the number of
servicing customers.
QUALITY POLICY OF MAHINDRA AND MAHINDRA
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The quality The Quality Policy is made jointly by the Management Representatives of all
locations under the coordination of MQS. It is finalised by the President. Quality Policy is
communicated by MR through E-mail, Booklets, and Hardboard copies at appropriate
locations. The Suitability of the Quality Policy is reviewed jointly every year.
The quality policy of M&M shows how important a customer is for them as the policy
contains terms like Customer Perceptible Quality and Quality differentiation shall score at
the level Customers consider premium. Most of the automobile companies boast of their
quality standards and global level certifications but none focus on customer as much as
Mahindra & Mahindra does.
EXPERIENCE OF CRM PRACTICES
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Financing The financing arrangements take many days which thereby delays the
delivery date of the vehicle. The documentation and processing of required
documents take long if financing is done by an outside agency and this causes delay.
Spare part availability The availability of genuine spare parts is a matter of
concern as most of the customers by spurious local spare parts which are cheap butthe life time of those products is small when compared to the genuine products. M&M
is now trying to establish another channel for distribution of genuine spare parts and
pushing their dealers to promote genuine spare parts during servicing.
Desired Turnaround Time Turnaround time is the time when vehicle is given for
serving and when fully serviced vehicle is delivered back to the customer. This time
varies depending upon the type of servicing and condition of the vehicle. M&M tries
really hard to keep up the desired turnaround time and able to achieve it most of the
times.
STATIONS OF EXPERIENCE
The first station of experience is the Test Drive of the vehicle. The converted customerstake the test drive at their location only where the dealers bring the vehicle for the test drive.
This is a positive experience for the customers as customer does not take the trouble of
visiting the dealership for the test drive as in the case of passenger vehicles.
The second station of experience is Financing of the vehicle. This a definitely a negative
experience as there is a lot of hassle for clearing a loan and huge amount of documentation
and processing time which eats up the expected delivery date of the vehicle.
The third station of experience is Sales. This is a positive as the have a central
warehousing of the vehicles and even if the desired vehicle is not available at a dealership it
is arranged from nearby dealership and intimation is given to the head office regarding the
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same. So, the customer most of the time gets the vehicle which he desires so M&M keeps
up the desired customer service level.
The fourth station of experience is After sales service. This is negative as there are many
reasons for it starting for very basic of warranty schemes not properly clarified. The item
which can be freely replaced during warranty period are not mentioned and the experiencecomes like a vehicle is given for warranty scheme and the bills comes out to be Rs. 5000 this
is because the customer does not know which all parts are freely replaced and for which all
parts payments are to be made.
SUGGESTIONS
Financing through Mahindra Financing By using this option the company can
reduce the time for arranging finances as the financing agency is in-house so it will
create less hassle during clearing of the loan and they can finance up to 85% of theamount.
Calls Calls should be done to the customers regarding proper functioning of
various accessories like headlights and others.
CNG Leakage There should be timely checking of the CNG system and it is a
problem faced by most of the vehicle owners and if this is done regularly then it
would enhance customer loyalty.
Spare Part availability As discussed before, the spare part availability causes lot
of problem to the company as well as the customers so M&M is developing aseparate channel for spare parts that is they will setup retail stores for spare parts.