Beruflich Dokumente
Kultur Dokumente
Submitted on 20-Feb-2012 Group#08 (Section B) Basu Agarwal Bikram Satapathy Saloni Goel Shruti Mishra Srinivas Dhenuvukonda (FT12416) (FT12417) (FT12455) (FT12462) (FT12467)
Index
Page 1.0 2.0 Introduction Various Technologies at Maruti Suzuki Level of CRM 3.0 Analytical CRM 3.1 3.2. 3.3 3.4 4.0 Data base Direct marketing-Data analysis Cross-selling of various value added services 5 5 6 6 3 4
Customer Retention for Service at dealers, satisfaction, thereby, sales retention for the future 7 8 10 10 10
Operational CRM 4.1 4.2 4.3 4.4 Campaign management for promoting the special offers SX4 Pre-launch Campaign management on MSD CRM 4.0 Insights for Dealer Development Division (DDD) & used car division (TRUE VALUE) Loyalty card implementation (Auto card) 11
Strategic CRM Philosophical CRM Challenges addressed by MS Dynamics CRM 4.0 Future challenges of Marutis CRM
11 12 14 14
1.0 Introduction
Maruti Suzuki is the Indian passenger car market leader for several decades. It has crossed the 10 million cumulative domestic sales mark here today. It is the only automobile company in India to cross this milestone. The Company, which had rolled out its first car in December 1983, attained 5 million domestic sales in February 2006. The next 5 million domestic sales have been achieved in six years. The 10 millionth vehicles, a Red Swift Vxi, was dispatched to Coimbatore on February 9th, 2012 from the Company's Manesar plant. While Maruti 800 and Omni powered sales for almost two decades, the Alto has been India's best-selling car for the last over 7 years. In recent years, the success of WagonR and Swift, among others, has accelerated the Company's progress towards the 10 million mark. Dedicating this milestone to customers, Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Limited, said, "Maruti Suzuki's success story is closely linked with the success story of India in the last two decades. Even as India has grown and transformed, Maruti Suzuki has evolved to meet changing demands. He said, we will continue to drive the growth and evolution of India's car market. I thank employees, dealers and suppliers for their support and commitment". Top five Maruti Suzuki models in cumulative sales Models M800 Alto + K10 Omni Wagon R Swift Cumulative Units sold 26.36 lakh units 19.08 lakh units 14.37 lakh units 11.14 lakh units 6.85 lakh units
Despite holding strong position in the market, Maruti Suzuki losing market share drastically due hyper competition prevailed with the entry of foreign players such as Ford, Chevrolet, Toyota, Honda & Renault etc. With that competition in place, the marketers now had to focus on customer oriented activities to stay in touch and retain them. Also, Maruti used communicates with the dealers and dealers, in turn, the dealers communicate with the end customers and vice versa. With this, there is lot of widened gap of understanding the customer needs and wants. With that dissatisfied customers are growing immensely. there is no proper channelizing system to deploy the customer complaints and then solve them on time. Diagnosing these dynamic changes in the customer market, Maruti wanted to Great Lakes Institute of Management, Chennai 3
communicate with the existing customers directly and understands the requirements and serve them better. Hence, Maruti had to initiate various customer focused marketing activities such introducing Customer Relationship Management (CRM) to retain the customers, acquire new customers & increase the customer satisfaction& loyalization.
Maruti Suzuki
Maruti Suzuki
Dealer
Dealer
Customer
Customer
Technology
Oracle 9i Oracle-business suite Microsoft dynamics CRM
Suppliers
Wipro, Oracle Wipro, Oracle HCL, Microsoft, SAS
DMS
MSD server
ATM
These techniques can reduce marketing cost by eliminating customer groups who are unlikely to place orders. The techniques that are extensively used in Direct Mail Marketing are RFM analysis, clustering loyalty scoring etc.
Cells in red color indicate that there is positive relationship between two products. That is, when customers buy one product, they tend to buy the other product as well. Cells in blue color Great Lakes Institute of Management, Chennai 6
indicate the opposite. When customers buy one product, they tend to not buy the other product. Brightness of cells indicates the relative strength of relationships. The chart shows that the following product pairs have strong positive relationship;
Also notice that most product pairs show negative relationship (in blue). Knowing negative relationship can prevent from wasteful marketing efforts! The strongest pairs as follows;
3.4. Customer Retention for Service at dealers, satisfaction, thereby, sales retention for the future
In the current scenario of Indian passenger car industry, customer churn is a big problem as the competitors are pouring sops on customers .Also; it is the duty of OEM to ensure that every customer is retained by the dealer for service needs. As in these days, the margins on sales of new cars for dealers is almost vanished or narrowed down, it is the service business that makes the dealers viable. Also, acquiring a new customer is costly when compared to retain the existing customer. Hence, retention of customers for both future purchase of the cars and current service needs is necessary for Maruti Suzuki.
For obvious reasons, the most important strategy in customer retention is to identify groups that are likely to leave (potentially to rival providers) through performing retention (alternatively defection) rate analysis. Once they are identified, preventive measures can be developed and actions can be followed to prevent defections. The following techniques can be used to identify customer groups of defection risk; The main objectives of MS Dynamics CRM at the analytical level are to provide the predictive modeling for probable dissatisfied customer in the service and provide the insights to the related department. The satisfaction scores and churn scores can be calculated at this level
Defector profiling Develop profiles of risky groups based on demographic, geographic and psychographic attributes. Defection scoring Build neural network predictive models that can predict likelihood of defection.
CTPI DMS MSD server RDBMS DW ATM HCL call Centre server DA SAS platform Microsoft Dynamics CRM 4.0 Interface
MS Office
When everything is ready to plan a new marketing campaign, the first steps are often gathering information and determining your audience. From there, one can create your team and your budget for the campaign and get ready for launch. All this information, as well as data about the campaign tasks, can be stored in a campaign record, allowing you easy access to the details of a particular campaign. You can also run reports on the campaigns and see what marketing works best for your organization.
4.3. Insights for Dealer Development Division (DDD) & used car division (TRUE VALUE)
There are two major responsibilities of the DDD division. 1. Improving the customer satisfaction of the existing customers through dealer activities. 2. Enhancing dealer network by analyzing the demographic variables. Analytical CRM will provide the satisfaction scores (defection scores) upon which there will be action taken by the relevant division for improving the customer satisfaction measures. This would help the dealers to increase profitability by retaining them. Also, analytical CRM will provide the cluster analysis, upon which the DDD will take action to appoint a new dealer in the city or close down the existing one. Great Lakes Institute of Management, Chennai 10
The TRUE VALUE division undertakes trade-in activities of any car in the market. Operational CRM will provide recommendations based on the data from DMS or Maruti ecommerce portal of exchange of cars or other sources.
Owners
Strategic CRM
Employees
partners
Suppliers
competito rs
Fig 4: Strategic CRM framework for Maruti Suzuki Great Lakes Institute of Management, Chennai 11
Owners: A successful CRM strategy should create value for not only customers but for also investors or owners. Its top-down approach. Hence, management commitment is crucial to implement successfully. Customers: customers are the major focus of the CRM strategy Partners: partners such as dealers commitment in supporting the data is crucial for success of the CRM. Suppliers: Suppliers (HCL, SAS , Microsoft etc)the success of the CRM strategy largely depends on the quality of the product chosen and quality of service provided by them and commitment. Management: Employees: Key stake holders are employees in this process. There will be resistance for change of existing systems to new CRM strategy. Top management seriousness will ensure adaptation of CRM among the employees. Competitors: competitors practices influence the selection of CRM as it is a competitive advantage that it can create over the competitors.
The overall activities of CRM division mapping of those of other divisions in Maruti Suzuki is given in the following Table. Divisions of Maruti CRM Division of Maruti Suzuki Analytical CRM Operational CRM Strategic CRM
To implement CRM on Microsoft Dynamics CRM 4.0.plotform. Inhouse developed and customized. To identify customer success factors To create customer based culture To adopt customer based measures To develop end to end process to serve customers with the existing products To maintain competitive edge in serving the customer
Philosophical CRM
Marketing
Campaign management
Sales
Need analysis,
Lead management, complaint management, sales satisfaction Network enhancement, New dealer establishment Complaint management, Customer satisfaction
Dealer Development
Clustering
Service
Clustering, RFC,
References:
http://www.marutisuzuki.com/ http://www.marutisuzuki.com/showroom.aspx http://en.wikipedia.org/wiki/Maruti_Suzuki www.hcltech.com www.microsoft.com Customer relationship management, a database approach, V Kumar, Werner J. Reinartz
-----------------------------END-------------------------------------