A Project Report On CUSTOMER SATISFACTION SURVEY, ANALYSIS AND RECOMMENDATION AT FUTURE SUPPLY CHAINS Training Undertaken at

Submitted in partial fulfillment for the Award of Post-Graduation Diploma in Management

FMS-INSTITUTE OF RURAL MANAGEMENT, JAIPUR

Submitted By: Amitabh Vijay RM/July/12/VI/2646Faculty and Project Guide Roll no.-2546 FMS-IRM

Submitted To:PROF.PUNEET SHARMA

CERTIFICATE
Certified that this project report entitle Customer satisfaction survey analysis and recommendation at future supply chains is a record of project work done independently by Mr.Amitabh Vijayunder my guidance and supervision and that it has not previously formed the basis for the award of any degree, fellowship or associate ship to him.

Date: -

Prof. Puneet Sharma Faculty and project guide FMS-IRM

DECLARATION

I hereby declare that this project report entitled Customer satisfaction survey, analysis and recommendations at future supply chains is a bonafide record of work done independently by me during the course of summer project and it has not previously formed the basis for the award to me for any degree/diploma, associate, fellowship or other similar title, of any other institute/society.

Date: -

Amitabh Vijay RM/JULY/12/VI/2646 Roll no. - 2546 PGDM-RM

ACKNOWLEDGEMENT
I,herewith, take this opportunity to extent a sincere token of thanks to Brig. S.K Gaur, Director, FMS-Institute of Rural Management, Jaipur for all the guidance, support and help throughout my studies. This study is also one of the outcomes of valuable, continuous and systematic guidance of Prof.Puneet Sharma, Faculty, FMS-Institute of Rural Management, Jaipur. His support and constant help has made this study possible. I am grateful for his invaluable support. At the outset of a60 days long project study, I take this most awaited moment to express my sincere and heartfelt gratitude to FUTURE SUPPLY CHAINS for giving me the opportunity to do such a competentproject. I am left with no words to express my thanks for its gracious favors and valuable experiences. It gives me immense pleasure to express a very special thanks to my mentor Ms. Charulata Bansal (Senior Marketing Head) for her constant guidance and encouragement during the project due to which I was able to complete my project.Also this project would have been incomplete without the help and guidance of Ms. Namrata Rathore for her tireless efforts to help me. Her presence by my side acted as a fountain of confidence that helped me to work with zeal for the success of this project. My experience of the project was anendeavor of many people and hence they are the torchbearers through whom I could see the glimpse of the working style and scenario prevalent in the industry. I am very thankful to all the suggestions and technical knowledge and skills which were embodied into me by the valuable support of employees of Future Supply Chain. I take pride in mentioning the mental, moral encouragement provided by my parents and my brother. I would also like to mention many thanks to all my friends for their continuous support and help during the project study.

AMITABH VIJAY

PREFACE
It is true that Experience is best teacher In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities. The PGD-RM programmed is well structured and integrated course of rural studies. The main objective of practical training at PGD-RM level is to develop skills in student by supplement to the theoretical study of rural management in general. Industrial training helps to gain real life knowledge about the rural environment and rural business practices. The PGD-RM programmed provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management towards rural areas. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field.

TABLE OF CONTENTS

S.NO.
Executive Summary Chapter 1 Introduction

Particulars

Page no.
01 02 02 02 04 05

A. Statement of Problem B. Objective of Research C. Research Methodology D. Significance of the Project E. Limitation of the Study Chapter 2 Profile of the Organization
a. Introduction of the company b. Distribution Network c. FSC Overview d. Introduction of Supply Chain Management

06 07 10 13 23 27 53 55 56 57 63

Chapter 3 Analysis and Interpretation Chapter 4 SWOT analysis Findings Suggestion Chapter 5 Annexure Chapter 6 Bibliography

Executive Summary
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. . . . These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-ofmouth marketing, which is both free and highly effective." Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. "In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget moteleven though its facilities and service would be deemed superior in 'absolute' terms." The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be far too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Purpose "Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty." "Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:"

1. "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the companys goods and services."[1] 2. "Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firms customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes." On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return customers and might even evangelize for the firm. (A second important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction." 3. Organizations need to retain existing customers while targeting noncustomers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. 4. "Customer satisfaction is measured at the individual level, but it is almost always reported at an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your stay.'" 5. As research on consumption experiences grows, evidence suggests that consumers purchase goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of the product. Utilitarian benefits of a product are associated with the more instrumental and functional attributes of the product (Batra and Athola 1990). 6. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. 7. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,

Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. 8. The usual measures of customer satisfaction involve a survey[6] with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. Their satisfaction is generally measured on a five-point scale.