INTRODUCTION

The biggest management challenge in the new millennium of liberalization

and globalization for a business is to serve and maintain good relationship with the
king the customer. In the past producers took their customers for granted, because at
that time the customers were not demanding nor had alternative source of supply or
suppliers. But today there is a radical transformation. The changing business
environment is characterized by economic liberalization, increasing competition, high
consumer choice, demanding customer, more emphasis on quality and value of
purchase etc. All these changes have made today’s producer shift from traditional
marketing to modern marketing. Modern marketing calls for more than developing a
product, pricing it, promoting it and making it accessible to target customer. It
demands building trust, a binding force and value added relationship with the
customers.

Customer relationship management (CRM) is a term that refers to practices,

strategies and technologies that companies use to manage and analyze customer
interactions and data throughout the customer lifecycle, with the goal of improving
business relationships with customers, assisting in customer retention and driving
sales growth. CRM systems are designed to compile information on customers across
different channels or points of contact between the customer and the company which
could include the company's website, telephone, live chat, direct mail, marketing
materials and social media. CRM systems can also give customer-facing staff detailed
information on customers' personal information, purchase history, buying preferences
and concerns.

Customer relationship Management has three important elements to its

success story. They are people, process and technology. People within the
organisation like staff and managers need to support customer relationship
management (CRM). Customer relationship Management process must be properly
investigated and planned to support the CRM initiative and locating the right
technology to enhance the processes, provide staff with the best data as well as being
user friendly.

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 CRM defines the process of the company are fully occupied with acquiring
customers, selling the product to customers and maintaining a long term relationship
to a customer. CRM is actually a tremendous step forword in creating a system that
can provide a means for retailing endividual loyalty in a world of nearly seven billion
souls. CRM helps in order to changing nature of the customer becouse customers are
not what they used to be. Customer Relationship Management (CRM) has been
defined in many ways. It is defined as a business strategy that is designed to reduce
cost and increase profit, respond to company's needs for both current and potential
customers in order to build relationship value. This strategy is mainly focus on
customers need and behaviour to help create a close relationship between the
customers and the business.

Features of CRM

Customer Relationship Management is a strategy which is customized

by an organization to manage and administrate its customers and vendors in an
efficient manner for achieving excellence in business. It is primarily entangled with
following features:

 Customers Needs
 Customers Response
 Customer Satisfaction
 Customer Loyalty
 Customer Retention
 Customer Complaints
 Customer Service

Importance of Customer Relationship Management

CRM is about building relationship with the customer, it is beyond selling and

marketing. It helps in knowing customer needs and future needs. Retaining existing

customers is very important because the time, effort and money involved in finding

new customer base are huge. CRM helps to understand customers, customer issues,

customer needs in a better way.

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The following are the advantages of CRM.

 Track Customer needs, issues, interactions

 Improves the customer relationships, retains customers
 Analyzes customers needs, behaviours
 Collaborates the organization workflows
 Cost saving, Reduces costs involved in customer service
 Organization Profits improves
 Improves the sales and helps in marketing
 Allows to predict the business needs
 Companies position in market increases

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 NEED FOR THE STUDY

The biggest management challenge in the new millennium of liberalization and

globalization for a business is to maintain good relationship with the king the
customer. Customer relationship management plays a major role for the growth of the
company in the market scenario. The purpose of customer relation is not only for
retaining the customers but also attracting new customers and increasing the sales and
also creating &maintenance of brand awareness.

Customer’s perceptions attitudes & views regarding the products & services
along with suggestions assume greater importance in the light of new entries and
potential competitors. This study is an attempt that directs to facilitate the
management in marketing their future decisions in promoting and creating a good
image in the society.

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 SCOPE OF THE STUDY

The scope of the study is to find out the Customer Relationship

Management in Chowdary Spinners Limited. The study mainly focuses on the various
aspects influencing the marketing strategies of the company. This topic has studied in
TEXTILE sector in world and Indian industry. Leading companies of Chowdary
Spinners Limited have been selected on the basis of their market share for the
research study and their comparative study has been carried out .The scope of the
study as per the topic is sufficient enough to meet the requirement of research study.
There is a big demand for the manufacturing and supply of textile products at the
global level. Fortunately, Indian textile products are internationally popular and the
market is dominated to a large extent

Customer Relationship Management is one of the hottest and most talked

about topics in the industry today and for good reason. CRM (customer
relationship management) is an information industry term for methodologies,
software, and usually Internet capabilities that help an enterprise manage customer
relationships in an organized way. Simply stated, Customer Relationship Management
(CRM) is about finding, getting, and retaining customers. CRM is at the core of any
customer focused business strategy and includes the people, processes, and
technology questions associated with marketing, sales, and service. In today’s hyper
competitive world, organizations looking to implement successful CRM strategies
need to focus on a common view of the customer using integrated information
systems and contact center implementations that allow the customer to communicate
via any desired communication channel.

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 OBJECTIVES OF THE STUDY

The main objective is to determine the current relationship management level

of the customers in all aspects related to CHOWDARY SPINNERS LIMITED.

 To study the current CRM practices of Chowdary Spinners Limited.

 To find out the impact of CRM on the profitability of the Chowdary

Spinners Limited.

 To study the factors affecting the CRM practices in Chowdary Spinners

Limited.

 To identify what type of marketing strategies are being followed by the

company.

 To know how the company generates new leads through customer

satisfaction.

 To determine how the company’s customer care department handle

customer queries more effectively and efficiently.

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 METHODOLOGY OF THE STUDY

After reviewing the literature and conducting a pilot study a questionnaire had
been framed that is relevant to the priority set objectives.

SOURCE OF DATA COLLECTION

1 Primary Data
2 Secondary Data

PRIMARY DATA:

Primary data means which is collected for the first time. These data are
basically observed and collected from the marketing department. A simple random
sampling method was adopted to conduct the study. The sample consists of 100 in
number.

SECONDARY DATA:

Secondary data means already existing data. This data was collected through
published source of information. It consists of

 News Papers
 Books
 Websites

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 LIMITATIONS OF THE STUDY

The following are the limitations of study.

 Time is a limited factor to study about the project i.e.8 weeks.

 The customers may not reveal all the information due to personal bias.
 The respondents may not respond to some typical questions in the
questionnaire.
 Interaction with the company executive was limited due to their busy
schedule.
 The information collected is mainly primary data and the accuracy is subject
to the response record.
 The study is limited to a particular area of CHOWDARY SPINNERS
LIMITED.

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 INDUSTRY PROFILE

India is the second largest producer of textiles and garments in the world. The Indian
textiles and apparel industry is expected to grow to a size of US$ 223 billion by 2021,
according to a report by Technopak Advisors. This industry accounts for almost 24%
of the world’s spindle capacity and 8% of global rotor capacity. Abundant availability
of raw materials such as cotton, wool, silk and jute as well as skilled workforce have
made the country a sourcing hub

The textiles industry has made a major contribution to the national economy in terms
of direct and indirect employment generation and net foreign exchange earnings. The
sector contributes about 14 percent to industrial production, 4 percent to the gross
domestic product (GDP), and 27 percent to the country's foreign exchange inflows. It
provides direct employment to over 45 million people. The textiles sector is the
second largest provider of employment after agriculture. Thus, growth and all round
development of this industry has a direct bearing on the improvement of the India’s
economy.

Cotton textile industry is one of the oldest and largest during the last 3
decades. The textile industry still occupies a key position in the economy of the
country industries in India. Which has made rapid strides during the century of its
existence? At the end of March 2001 there were 1846 mills in the country (1565
spinning mills and 281 composite mills).

At present the industry provides direct employment to provide direct

employment to nearly 18 lakhs workers. It also provide indirect employment to many
millions like the cotton growers, processors, handlooms and power looms weavers
who alone are estimated five million and innumerable cloth dealers and shop keepers.
The industry contributes in ever increasing measure to the central and state
government by way of taxes and duties.

Being one of the oldest industries it has history of over 150 years. It occupies a
unique position in the world export, where India has a 24% share in the global cotton

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yarn market. It has an influence on agriculture because of its requirements of
machinery, dyes and chemicals and synthetic fibers. Thus the industry has an
important role to play in both economic prosperity of the country and in the supply of
essential commodities for the entire population.
The cotton textile industry consists of 3 distinct categories in the organized
sectors. There are
 Spinning mills.
 Coarse and medium composite mills.
 Fine and super fine composite mills.
Spinning mills are generally small size in size, coarse and medium composite
mills are not able to adjust their cost in the face or rising prices of raw materials and
increases in wages consequently many of them became uneconomic units and ran into
difficulties. Fine and super fine composite mills use foreign cotton. They are not
subject to stock restriction and can therefore carry on stable production program.
India has been a manufacturing nation and exports of the fine cotton fabrics to
all the nations of the civilized world.

The first mill in India was setup by C. N. DAVAR in 1854 with an

Englishmen as his partner. It was Davar’s mills which laid the foundations for strong
and growing textiles industry in Bombay and soon after in other regions of India. The
Bombay mills owner association is the first mill formed association in India in the
year 1875.

THE INDUSTRY
Indian textile industry can be divided into several segments, some of which
can be listed as below.
 Cotton textiles.
 Silk textiles.
 Woolen textiles.
 Readymade garments.
 Hand-crafted textiles.
 Jute and coir.

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 India textile industry is one of the leading in the world. Currently it is
estimated to be around US $52 billion and is also projected to be around US $115
billion by the year 2012. The current domestic market of textile in India is expected to
be increased to US $60 billion by 2012 from the current US $34.6 billion. The textile
export of the country was around US $19.14 billion in 2006-07, which saw a stiff rise
to reach US $22.13 in 2007-08. The share of exports is also expected to increase from
4% to 7% within 2012. Following are area, production and productivity of cotton in
India during the last six decades.

INDIAN TEXTILE INDUSTRY

Cotton textile Man made Silk Woolen Jute

Organized Sector Decentralized Sector

Cotton Mills (private

Public co-operative) Hand looms Power looms
(Cloth)

Spinning Mills Composite Mills

(Yarn) (Yarn & Cotton)

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 Year Area in lakhs Production in Yield KGs per
hectares lakhs bales of 170 hectare
KGs
1950-51 56.48 30.62 92
1960-61 76.78 56.41 124
1970-71 76.05 47.63 106
1980-81 78.24 78.60 170
1990-91 74.39 117.00 267
2007-08 85.76 140.00 278
2008-09 87.30 158.00 308
2009-10 76.67 136.00 302
2010-11 76.30 179.00 399
2011-12 87.86 243.00 470
2012-13 86.77 244.00 478
2013-14 91.44 280.00 521
2014-15 94.39 315.00 567
2015-16 93.73 290.00 526

Though during the year 2008-09, the industry had to face adverse agro
climatic conditions, it succeeded in producing 290 lakhs bales of cotton comparing to
315 lakhs bales last year, yet managed to retain its position as world’s second highest
cotton producer.
TEXTILE INDUSTRY IN INDIA SCENARIO
The organized cotton textile industry is one of our oldest and most family
established major industries at the end of March 1994 there were 1,775 mills in the
country (906 spindles and 269 composite mills) with 28 millions spindles and 1.6
lakhs labor. There were 132 closed mills by the end of March 1994.

In India textile industry is predominant cotton based 70 percent of the fabric

production of cotton, carries from the year depending upon rainfall and weather
conditions and price fluctuations in raw cotton effect the industry production of yarn
in almost entirely in the organized sector and over the year. It has showing a steadily
rising trend as for example from 1600 million kgs in 1993-94 to nearly 28,000 million
meters in 1993-94.

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PERSPECTIVE OF INDIAN TEXTILE INDUSTRY
Textile industry is the largest industry of modern India. It contributes about 4
percent of GDP, 20 percent of total output, and together with carpets in handicrafts it
has a share of 38 percent in total value of escorts. The first cotton mill in India was
setup in Calcutta 1818. However, Indian textile industry plays a pivotal role through
its contribution of about 14 percent to industrial production, 4 percent to GDP and
16.63 percent to export earnings.

Its share in global textiles and apparel is 3.9 percent and 3 percent
respectively. It provides direct employment to over 35 million people. Textile sector
is the second largest provider of employment after agriculture. The close linkage of
the industry to agriculture and the ancient culture and tradition of the country make
the Indian textiles sector unique in comparison with the textiles industry of other
countries.
This industry is growing by 9% -10% and the pace would be increase to 16
percent in the coming years. This also provides the industry with the capacity to
produce a variety of products suitable to different market segments, both within and
outside the country. Ahmadabad had 19 percent of mills are providing employment to
113.6 percent of the workers outside the Bombay city. Some mills located in shaper,
Baroda and other centers in Maharashtra.

India textile industry contributes to be predominantly cotton based as 65

percent of fabric consumption in the country is being against the world average of
46.5 percent.
PRESENT TEXTILE INDUSTRY
The Indian textile industry faced troubles time during the year 1998 with the East
Asian currency crisis drying up orders raising the spectacular of recession the
spectacular and several government’s decisions virtually remaining on paper.

Some moment was however made in handling for textile up graduation fund (TUF)
and cotton technology mission with India getting a miracle booster after the
Europeans union (EU) decides to develop to drop the three years old and anti
dumping proceedings against unbleached cotton grew fabrics exports.

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Cotton production during the current year, despite the losses suffered by growers lost
year and month India continuing to perform poorly on the production front due to post
attract and water logging in fields. Cotton further trading was revived after 32 years
with the trading company commencing on Dec 5th, but problems of poor turnover
during the first few days is worrying East Indian Cotton Association (EICA), which is
running the exchange.

As stated earlier cotton textile industry provides employment too many people with
the introduction of NIFT (National Institute of fashion Technology). It got very big
contracts for the quality products due to this it provides employment to all the
handloom weavers for the several of the clothing garments.
INDIAN TEXTILE INDUSTRY FACTS

 India retained its position as world’s second highest cotton producer.

 Acreage under cotton reduced about 1% during 2008-09.
 The productivity of cotton which was growing up over the years has decreased
in 2008-09.
 Substantial increase of minimum support prices (MSPs).
 Cotton exports couldn’t pick up owing to disparity in domestic and
international cotton prices.
 Imports of cotton were limited to shortage in supply of extra long staple
cottons.
 14% of the industrial products and in India is done by the textile industry.
 High exports and foreign revenue comes from the textile industry in India.
38% of the country’s total export is coming from textile industry.
 There are around 1200 million medium to large scale textile companies in
India.

STRENGTHS OF INDIAN TEXTILE INDUSTRY

 Tradition in textiles and long operating experience.

 Large and growing domestic market.
 Strong raw material base.
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  Production across entire textile value chain.
 Stable, low-risk Company, safe for business growth.
 Easy availability of abundant raw materials like cotton, wool, silk, jute.
 Widely prevalent social customs.
 Variety of distinct local culture.
 Constructive geographic and climatic conditions.
 Large domestic market and very low import content.
 Flexible textile manufacturing systems.

WEAKNESS OF INDIAN TEXTILE INDUSTRY

 Increased global competition in the post 2005 trade regime under WTO.
 Imports of cheap textiles from other Asian neighbors.
 Use of outdated manufacturing technology.
 Poor supply chain management.
 Huge unorganized and decentralized sector.
 High production cost with respect to other Asian competitors.

THE TEXTILE COMMISSION ORGANIZATION

 The functions of the organization are many and diverse they are:
 To adverse the government and planning commission on the targets of
production for the various five years plans.
 To scrutinize proposals from mills few expansions recommendations new
installations for licensing exercise control the pattern of production.
 To ensure adequate supply of raw materials to the industry and to make
recommendations to government in this regard.
 To collect and publish all relevant statistical data relating to production stocks
imports etc. In the administrative authority for implementing of government
policies with regard to all textile industry.
 It also helps for the small scale industry spinning mills to face textile
industries. This is done by giving large contracts in favor of the small firms.

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 Cotton textile industry being the largest industry in India has spread partially all
over the parts of the country it is monthly localized in the states of Maharashtra and
Gujarat. In recent years cotton textile industry has also spread to a number of other
states like Madhya Pradesh, Bihar, Kerala, Andhra Pradesh, Uttar Pradesh and Tamil
Nadu.

ROLE OF TEXTILE INDUSTRY IN INDIA

Role of textile industry in India GDP has been quit beneficial in the economic
life of the country. The world wide trade of textiles and clothing has boosted up the
GDP of India to a great extent as this sector has brought in a huge amount of revenue
in the country. In the past one year, there has been a massive up surge in the textile
industry of India. The US $37 billion in 2004-05 to US $49 billion in 2006-07. During
this era, the local market witnessed a growth of US $7 billion that is from US $23
billion to US $30 billion. The export market increased from US $14 billion to US $19
billion in the same period.

The role of textile industry in India GDP had been under growing a moderate
increase till the year 2004-05. But ever since 2005-06, Indian textiles industry has
been witnessing a robust growth and reached almost US $17 billion during the same
period from US $14 billion in 2004-05. At present, Indian textile industry holds 3.5 to
4 percent share in the total textile production across the globe and 3 percent share in
the export production of clothing. The growth in textile production is predicted to
touch US $19.62 billion during 2006-07. USA is known to be the largest purchaser of
Indian textiles.

The role of textile industry in India GDP also includes a hike in the investment
flow both in the domestic market and the export production of textiles. The
investment range in the Indian textile industry has increased from US $2.94 billion to
US $7.85 billion within 3 years, from 2004-07. It has been assumed that by the year
2012, the investment ratio in textile industry is most likely to touch US $38.14 billion.

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INDIA’S WORLD MARKET SHARE IN TEXTILE INDUSTRY

25
world market share(%)
20

15

10 Series1

The world market share in spite of the Chinese dominance, India has a fair
opportunity to grab a substantial stake in the projected garment market share.
According to PHD chamber of commerce and industry(PHDCCI), post-MFA India’s
market share in the US is expected to go up to 15 percent from the present 4 percent.
In the EU, the market share increase is expected to be 50 percent from the current 6
percent to a 9 percent.

INDIAN TEXTILES TARGETS TO ACHIEVE BY END OF 11TH FIVE YEAR

PLAN (2007-12)
 Market size of US $115 billion.
 Export target US $55 billion.
 Domestic market US $60 billion.
 Indian market share in world textiles trade to grow from 3% to 8%.
 12 million additional jobs.
 Investment Rs.1, 50,600 crores.

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TEXTILE EXPORT TARGET (IN BILLIONS)

Year ( April, March) Target Achievement

2015-16 19.73 19.62*
2014-15 15.565 17.80
2013-14 15.16 17.80
2012-13 16.31 13.16
2011-12 15.05 12.41
2010-11 13.72 10.76

THE FUTURE OF THE TEXTILE INDUSTRY

India has the largest area of about 90 lakhs hectare under cotton civilization. But
introduction it is only third place, next to china and US the main reason is the lower
yield of around 300 kg per hectare compared to average of 560 kg per hectare the
percent yield in Pakistan is 563 kg, china 910 kg, the US 686 kg, Australia 1,482 kg
and Israel 1,814 kg.

The significance of the textile industry is also due to its contribution in the industrial
production employment. Currently, it is the second largest employment provider after
agriculture and provides employment to more than 30mn people. Prospect considering
the continual capital investments in the textile industry, the govt. of India may extend
the technology up gradation fund scheme (TUFS) by the end of the 11th five year plan
in order to support the industry. Indian textile industry is massively investing to meet
the targeted output of $85 billion by the end of 2010, aiming exports of $ 50 billion.

There is huge development foreseen in Indian textile exports from the $17 billion
attained in 2005-06 to $50 billion by 2009-10. The estimation for the exports in the
current financial year is about $19 billion. There is substantial potential in India
exports of technical textiles and home textiles, as most European companies want to
set up facilities near by the emerging markets, such as china and India.

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The global demand for apparel and woven textiles is likely to grow by 25 percent by
year 2010 to over 35mn tons, and Asia will be responsible for 85 percent output of
this growth.The woven products output will also rise in central and southern
American countries, however, at a responsible speed on the other hand, in major
developed countries the output of woven products will remain stable.Weaving process
is conducted to make fabrics for a board range of clothing assortment, including
shirts, jeans, sportswear, skirts, dresses, protective clothing etc, and also used in non-
apparel uses like technical, automotive, medical etc.

Growth

The Indian textiles industry is set for strong growth, buoyed by strong domestic
consumption as well as export demand.

The most significant change in the Indian textiles industry has been the advent of
man-made fibers (MMF). India has successfully placed its innovative range of MMF
textiles in almost all the countries across the globe. MMF production recorded an
increase of 10 per cent and filament yarn production grew by 6 per cent in the month
of February 2014. MMF production increased by about 4 per cent during the period
April 2013–February 2014.

Cotton yarn production increased by about 10 per cent during February 2014 and by
about 10 per cent during April 2013–February 2014. Blended and 100 per cent non-
cotton yarn production increased by 6 per cent during February 2014 and by 8 per
cent during the period April 2013–February 2014.

Cloth production by mill sector registered a growth of 9 per cent in the month of
February 2014 and of 6 per cent during April 2013–February 2014.

Cloth production by power loom and hosiery increased by 2 per cent and 9 per cent,
respectively, during February 2014. The total cloth production grew by 4 per cent
during February 2014 and by 3 per cent during the period April 2013–February 2014.

Textiles exports stood at US$ 28.53 billion during April 2013–January 2014 as
compared to US$ 24.90 billion during the corresponding period of the previous year,
registering a growth of 14.58 per cent. Garment exports from India is expected to
touch US$ 60 billion over the next three years, with the help of government support,
said Dr A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC).

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 The textiles sector has witnessed a spurt in investment during the last five
years. The industry (including dyed and printed) attracted foreign direct investment
(FDI) worth Rs 6,710.94crore (US$ 1.11 billion) during April 2000 to February 2014.

BENEFITS OFFERED BY THE INDIAN TEXTILE INDUSTRY

 India covers 61 percent of the international textile market.
 India covers 22 percent of the global market.
 India is known to be the third largest manufacturer of cotton across the globe.
 India claims to be the second largest manufacturer as well as provider of
cotton yarn and textiles in the world.
 India holds around 25 percent share in the cotton yarn industry across the
globe.
 India contributes to around 12 percent of the world’s production of cotton yarn
and textile.

The new age textile industry heavily depends on the synthetic fibers produced
as intermediary products by the petrochemical industry; the textile industry has been
revolutionized with the synthetic fibers flooding the market. These synthetic fibers are
long-chain polymers, manufactured from petro-chemical derivatives. The artificial
fibers industry is one of the fastest growing segments of industry internationally.

GROWTH SICKNESS:

Even while there has been a steady rise in plumage, there has been an
increase in the number of mills “that stopped production temporarily” and those
closed and sick. While the number or mills (non SSI) was 130 in 1991-1992 and 132
in 1994-1995, it rose 383 in 2000-2001. There is a feeling that serious efforts should
be made to identifying and support mills that can be revived.

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 SPUN YARN PRODUCTION BY PRIVATE, PUBLIC AND
COOPERATIVE MILLS (MILLION KG)

YEAR PRIVATE PUBLIC COOPERATIVE TOTAL

2009-2010 2053.43 58.96 154.47 2266.86

2010-2011 2195.24 50.31 143.36 2388.91

2011-2012 2209.35 48.25 139.92 2397.67

2012-2013 2764.42 45.37 136.92 2946.71

2013-2014 2874.32 43.63 130.74 3048.69

2014-2015 2963.25 41.73 128.37 3133.35

2015-2016 3120.40 38.36 100.42 3259.18

THE TEXTILES COMMISSIONER ORGANISATION

The function of the organization are many and diverse to advise the
Government and Planning commission on the targets of production for the various
five year plans, to scrutinize proposals from mills. Few expansion recommend new
installations for licensing to exercise control over the pattern of production, to ensure
adequate supplies of raw materials to the industry and to make recommendation to
Government in this regard to collect and publish all relevant statistical data relating to
production, stocks, imports, exports etc., in short one might say that the textile
commissioner in the administrative authority for implementation of Government
policies with regard to all textile industry.

Cotton textile industry being the largest industry in India, has spread all parts
of the country. It is mostly localized in the states of Maharastra and Gujarat. In recent
years, cotton textiles industry has also spread to a number of other states like Madhya
Pradesh, Bihar, Kerala, Andhra Pradesh, Uttar Pradesh and Tamilnadu.

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GOVERNMENT INITIATIVES

The Indian government has come up with a number of export promotion

policies for the textiles sector. It has also allowed 100 per cent FDI in the Indian
textiles sector under the automatic route.

Some of initiatives taken by the government to further promote the industry are as
under:

 India’s first integrated textiles city, which will largely cater to the export
market and build a brand for Indian textiles abroad, is likely to be set up in the
state of Andhra Pradesh.
 The Clothing Manufacturers' Association of India (CMAI) has signed a
memorandum of understanding (MOU) with China Chamber of Commerce for
Import and Export of Textiles (CCCT) to explore potential areas of mutual co-
operation for increasing apparel exports from India.
 The Department of Handlooms and Textiles, Government of India, has tied up
with nine e-commerce players and 70 retailers to increase the reach of
handlooms products in the Indian market, which will generate better prices
and continuous business, besides facilitating direct access to markets and
consumers for weavers.
 The Union Ministry of Textiles, which has set a target of doubling textile
exports in 10 years, plans to enter into bilateral agreements with Africa and
Australia along with working on a new textile policy to promote value
addition, apart from finalising guidelines for the revised Textile Upgradation
Fund Scheme (TUFS).
 The Government of India has started promotion of its ‘India Handloom’
initiative on social media like Facebook, Twitter and Instagram with a view to
connect with customers, especially youth, in order to promote high quality
handloom products.
 Subsidies on machinery and infrastructure
o The Revised Restructured Technology Up gradation Fund Scheme
(RRTUFS) covers manufacturing of major machinery for technical
textiles for 5 per cent interest reimbursement and 10 per cent capital

22
 subsidy in addition to 5 per cent interest reimbursement also provided
to the specified technical textile machinery under RRTUFS.
o Under the Scheme for Integrated Textile Parks (SITP), the Government
of India provides assistance for creation of infrastructure in the parks
to the extent of 40 per cent with a limit up to Rs 40 crore (US$ 6
million). Under this scheme the technical textile units can also avail its
benefits.
o The major machinery for production of technical textiles receives a
concessional customs duty list of 5 per cent.
o Specified technical textile products are covered under Focus Product
Scheme. Under this scheme, exports of these products are entitled for
duty credit scrip equivalent to 2 per cent of freight on board (FOB)
value of exports
 The Government of India has implemented several export promotion measures
such as Focus Market Scheme, Focus Product Scheme and Market Linked
Focus Product Scheme for increasing share of India’s textile exports.
 Under the Market Access Initiative (MAI) Scheme, financial assistance is
provided for export promotion activities on focus countries and focus product
countries.
 Under the Market Development Assistance (MDA) Scheme, financial
assistance is provided for a range of export promotion activities implemented
by Textiles Export Promotion Councils.
 The government has also proposed to extend 24/7 customs clearance facility at
13 airports and 14 sea ports resulting in faster clearance of import and export
cargo.
 The Ministry of Textiles has approved a 'Scheme for promoting usage of
geotechnical textiles in North East Region (NER)' in order to capitalise on the
benefits of geotechnical textiles. The scheme has been approved with a
financial outlay of Rs 427 crore (US$ 63.67 million) for five years from 2014-
15.

23
Road Ahead

The future for the Indian textile industry looks promising, buoyed by both strong
domestic consumption as well as export demand. With consumerism and disposable
income on the rise, the retail sector has experienced a rapid growth in the past decade
with the entry of several international players like Marks & Spencer, Guess and Next
into the Indian market. The organized apparel segment is expected to grow at a
Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year
period. Exchange Rate Used: INR 1 = US$ 0.0149 as on September 21, 2016

CRM IN THE TEXTILE INDUSTRY

In textile industry one company sell its product to another company. For
example a yarn manufacturing company sell fabric manufacturing company. A fabric
manufacturing company sell fabric to apparel company. The main customers of the
companies in the textile industry are the wholesalers. And the final product is sold to
the wholesalers and retailers. In this industry the customers are few and profit margins
are high. So CRM is very much necessary and relevant in this industry. There is a
high degree of uncertainty on the part of the buyers, the likelihood of customers
seeking a relationship is increased. If the firm loses its customer it would be major
loss to the firm. The product in the textile industry is complex and quality is an
important factor. One of the major values the customer expects from vendors is
quality. No customer will tolerate average quality. According to GE’s chairman John
“quality is the best assurance of customer allegiance and strongest defense against
competition and the only path to sustained growth and earnings.” If the product is not
of good quality the customer will not be satisfied and the firm may lose its customer.
Moreover there is a scope of customization in the product. The seller has to customize
the product according to the need of the customer. Customization is changing the
product according to the need of the customer in order to satisfy him.

A firm in textile industry has to maintain good relations with its customers.
They have to retain the customers for a long time to avail the benefit of their relations.
The customer relationship management is one of the effective tools to identify,
establish and maintain relationship with the customers. With the help of this research
we are going to identify the importance of CRM in textile industry.

24
 COMPANY PROFILE

Chowdary Spinners Limited is established in July 1994. It was originally

incorporated as private ltd company on above date. Subsequently it is converted in to
public ltd, company in 2005. The company entered in to commercial production
initially with an installed capacity of 2,640 spindles.

They are manufacturing yarn cone and hank form. The company has expanded
its spindles from time to time. Now the spindles capacity of the company is around
20400.

The company with 110 numbers of shares with each share as Rs 10/-. The
present turnover is 80 Crores. The company is paying 10% of salary for past 10 years
to the workers. The company is declaring dividends continuously for the past 5 years
at the rate of 100%. The company has ban-owes substantial amounts from UNION
BANK OF INDIA for the modernization and expansion of the company. The same
was paid back.

The promoter directors are CH.V.V.PRASAD CHOWDARY and

N.SRIRAMA KRISHNA RAO. The company is now running with around 450
workers in the factory and running in triple shifts on all 7 days of a week. This mill is
helping the rural poor to get employment by paying them decent wages compared to
other sector.

The company is continuously under modernization and replacing all the

machinery. Thus, the company has now introduced combers and producing combed
yarn also. The company has special quality control department and a laboratory
equipped to obtain a quality product.

The company's main objectives are to purchase quality raw material and to
produce and supply quality yarn to customers. One of its policies is to provide
employment opportunities to local people.

25
The industry produces yarn from cotton. They are two types of yarn.
1. Cone form- used for weaving on power looms
2. Hank form- used for handlooms.
3. The company markets its yarn in domestic markets and also
exports some portion through dealers. In domestic market, its
product is sold in BOMBAY, CHENNAI, and A.P through
consignment agents.

Raw cotton is available from Guntur and Ballary. They are using different
counts such as 10, 20, 40, they are different varieties of cotton. They are

DCH-32
MCU-5 } Long stable varieties

Varalakshmi
LK V-797 } Medium and short stable varieties
JAYADHAR LRA

There is no separate department for marketing. The accounts department

undergoes marketing activities.

Procurement of raw materials is done through brokers i.e. with the existence of
third party agency. The major contributors are

1) Mr. RAVI KUMAR. Khammam

2) Mr. PAVAN KUMAR. Warangal.

80% of procurement is done through the above firms and various firms
contribute the remaining.
Marketing of the finished products, i.e. yarn is done through various
consignment agents.

Few of them are

26
 1. N.H.D.C.AGENTS.(National Handloom Development Corporation)
2. AAKASAGANGA TEXTTILES KOLKATA.

Preparation:-

Preparation of yarn cotton is done through the following process:

1. Blow room
2. Carding
3. Preparatory
4. Spinning
5. Winding

Considering the following factors does the purchase of cotton.

A .Staple length
B .Fineness
C .Strength
D .Moisture content
E .Trash
Purchased cotton has to pass through the following stages for becoming yarn, which is
used by textile industries.

Blow room:
It is the first phase of the process. Cotton purchased is pass through bloom
room machine where dust and wastage i.e. trash content in the cotton is removed. The
purified cotton is made in to sheets and is rolled like cylinders or drums. The main
objective of the bloom room is to separate the waste content in the cotton.

Carding:

Cotton, which is in the form of cylinders, is further purified and is made

in the shape of threads. Each drum obtained from the room is made in to thread.

27
Preparatory:

The cotton obtained from carding, which is in the form of threads, is grouped
together. Different threads obtained from carding department are grouped lap formers,
combers, and drawing.

Spinning:

The cotton obtained from preparatory department is made in to fine threads of

lesser width through spinning. The thread of lesser width called as yarn, which is
obtained from spinning.

Winding:

Winding is the method in which the yarn is made in to packages of different

shapes such as conical and bails etc.

Board of Directors:

Sri CH.V .V Prasad Chowdary

- Chairman & Managing Director

Sri N. Srirama Krishna Rao

-Executive director

Sri N.Ganesh
-Wholetime Director

Sri K.NarayanaRao

Sri N.Sudhskar

Sri S.Rama Krishna

28
 Chowdary Spinners Limited,
Tanuku
MILL REPORT

General Information

Name of the Mill : CHOWDARY SPINNERS LIMITED

Situated at : Chivatam Road, Tanuku.

Date of Establishment : 1994

Area covered by the mill : 10.6Acres

Starting spindlage : 2640

Present spindlage : 20400

Production material : 100%cotton

Total No of operators : 450

Total No of staff : 22

Percentage of permanent operators : 60

Percentage of trained operators : 40

Utilization : 87.3

Average count : 20

Cone yarn %

Hank yarn %

Sales centers:

Cone yarn-SIRISILLA.
Hank yarn-AP,SHOLAPUR.
Humidification details
No.ofplants-4

Type of plant-centralized Humidification

29
Department:

Plant engineer is responsible for the entire production activities. The function of plant
engineer is to rectify mechanical defects, to make machinery running smoothly and
their maintained and co ordination of production activities. Plant engineer is
maintaining his functions which two assistance i.e., department in charge and the
supervisor. Each part of production section is under control of section in charge,
directly to report the directly to plant engineer.

Products Manufactured:
The mills provide quality cotton yarn and blended spun yarn. Both the power
looses are well received in the year Indian market as well as received in the
international markets the company is providing counted yarn also.
It is supplying 75 percent of the yarn in the cane power supply loams of
Bombay and other places 255 of the yarn in the hank to weavers in our state. The year
is well received in the market for the manufacturing of Sarees, Dhotis and other
fabrics.
The percentage of capacity utilization is 95 percent resulting in more
production and better utilization manpower. The labor is intensive.
The company imports technology, it imports its technology from LMW (Lakshmi
Machinery Work) Coimbatore. This company is total pollution free

30
PROCESS FLOW CHART

MIXING

BLOW ROOM

CARDING

CARDED COMBED ROUTE

YARyROUTE
LAP FORMAR

COMBER

DRAW FRAME-I

DRAW FRAME-II

SIMPLEX

RING FRAME

HANK YARN CONE YARN DOUBLED YARN

REELING AUTO CONE WINDING AUTO CONE WINDING

BUNDLING CONE PACKING PLY WINDER

BALING DOUBLING

HANK YARN CONE YARN

REELING CONE WINDING

BUNDLING CONE PACKING

BALING

31
Financial Department:

Though the company was started with the initial share capital with 90 lacks
present it is having share capital of 7,80,00,000 and it consists reserves and surplus
with the amount of 1,95,37,401. In the year 2010-2011 the company got net profit
3,00,22,259..
And it is having 26,50,16,115 fixed assets and 38,17,93,578 current assets till
2010-11 and the country consist of current liabilities Rs.9,10,83,890.
So the company has the working capital 20.00 crores in the current year.
The organization is having current ratio with 4.42 that means it is having
optimal performance with recording as the standard normal current ratio is 2.1
The company is having the liquidity percentage of the assets with the ratio of 0.53
The cowman maintains the debt equity ratio with 5.47 percentages which
shows the relationship between total debt and share holders equity. The inventory is
having a greater role in organization. It can be shown with the inventory ratio by
10.42
The company has following financial institution that is Andhra Pradesh State
Financial Corporation at Eluru.
No specific impact has taken place because of depreciation of rupee on the
financial position of organization. The finance department has been with for pro and
other languages especially with the package of Tally 9.0 the Company disposes its
profits in to two types
• Inform of surplus and reinvestment
• 20 percent bonus to the worker.

32
Marketing Wing:
The marketing wing is having tremendous role in this organization as a
company for the manufacturing.
Yarn the cotton is necessary as the raw material for the process of production.
The marketing department takes an effort to minimize the costs regarding from raw
materials purchasing to district of the finished product.
As the marketing gives costumers as a choice among the products. This
organization provides into the market. This marketing main aim is creating costumers.
For that this company maintaining a better marketing team. The marketing team is
considered members who are situated throughout the India those members take an
achievement concentrated having financial give on the four P'S Concept.

Product:
Here the marketing product is yarn thread it is produced as a bundle which
consists for kegs. The yarn thread is produced as a bundle which consists 160000
meters. It is high quality product and color of the product is white transparent cover
and well setup in the brown boxes 24 boundless for one box to export.

Place:
The place is the most significant in the marketing because the product should
be easily transported and to be sold easily. This product is being exported to the
following places from Tanuku.

• Chennai
• Coimbatore
• Mumbai

Because these place the textile industries are well established to manufacture
cloth materials.

Price:
The price nothing but the value of the product, the price of the product is
fixed is the organization according to the market fluctuation and inflation rate the

33
price of the yarn will be charged. The organization is having effective pricing
strategies the price of the one Kg Yarn = Rs 155 to Rs160 in the market.

Promoters:
Promotion is the necessary as the process of selling are more technical buyers
more sophisticated and the organization promotional activities are taken place to the
agent and merchants. Because the organization is newly established it does not
depend upon the advertisement. All the marketing activities are based on the order
taking the organizations is offering the following promotions.

Informative Promoters:
The information about organization products was done through the agents.

Persuasive Promotion:
The basic purpose of promotion is to persuade customers the sales of the
organization are growing year by year in progressive manner.
All the sales activities done through agents and merchants. In the process of
sales there selling expenses will be acquired. If he estimated those expenses as follow
(in lakhs)

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

34.07 36.88 37.08 37.18 37.28 37.28 37.48

34
Graphical Representation:

38

37

36

35

34

33

32
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Process of Manufacture:
A brief note regarding the process of manufacture along with flow charts
covering of cotton are mixed together for each mixing/count to take advantage of the
desirable characteristics of each quality of cotton and to obtain desired quality of yarn
at minimum cost. The mixing is done manually.

1) Blow Room:
In this process cotton is opened into small lint's, removed empower ties like
trash, sand leaves and seeds and cleaned cotton is collected in the form of a sheet
tangled fiber rolled into laps. The process involves several continuous operations and
the product is measure at the scetchers which is the last operation the lap's produced
have to meet predetermined weight per unit length.

35
2) Carding:
In carding the fiber which is in the lap form is brought into alignment and
arranged in sliver form. In this process some impurities still lying in the laps and
certain amount of short fibers are removed. The finished product of this process is
delivered in the form of sliver which is collected in cans.

3) Drawing:
In this process parallelization and improved blending of fibers are achieved by
drafting. Several slivers are reduced to the thickness of one sliver.

4) Combers:
The Card cans are fed to sliver lap machine and are made into lap form. The
laps thus produced from sliver alp are fed to Ribbon Lap Machine. The lap produced
in Ribbon Lap Machine are fed to coming machine wherein short fibers are removed
from the cotton material resulting better quality cotton sliver.

5) Simplex:
This is also called conferred inter process. The purpose of this process is to
attenuate the sliver into thinner and thinner stands to achieve the desired ultimate yarn
co-joint. Now, the Cotton is fully cleaned thoroughly blended and having its
individual fibers aligned parallel to each other. It is thus made suitable for spinning to
yarn.

6) Spinning:
Simplex Material is fed to ring frames and the material is further drawn
thinner, so as to get the final count required. The required twist is inserted by the
rotation of spindles and the yarn thus produced is wound on the bobbins.

36
7) Reeling:
This is a process of unwinding yarn from cops or bobbins and rewinding on to
a revolving reel in the form of Hank.

8) Auto Cone Winding & Cheese Winding:

In this process the ring bobbin yarn is wound on to Cones or Cheeses.

SWOT ANALYSIS

Strengths:

 The Promoters are experienced and the company is an existing, profit making
unit.
 The promoters are from well educated and have good knowledge in textiles.
 Existing infrastructure can be made use for marketing the products of the
Company.
 The Company’s past track record in repayment of its loan commitments has
been good.

Weaknesses:

 The Company faces severe competition in the industry.

 The company is not re-investing extra funds.

Opportunities:

 There is a wide demand and supply gap for the yarn manufactured by the
company.
 Government also given very good push-up to moderate the spinning mills with
sophisticated machinery and announced export oriented incentives for
development of the industry.

37
Threats:

 This industry purely depends on agro based products. Due to lack good
monsoon, industry is facing some shortage of raw materials and it leads higher
production cost and finished products are not getting such level of benefit.
 Because of the above reason, our (India) production cost is higher than other
countries so we are facing some problems to compete in international market.

38
 THEORETICAL FRAMEWORK

Customer relationship management (CRM) is a term that refers to practices,

strategies and technologies that companies use to manage and analyze customer
interactions and data throughout the customer lifecycle, with the goal of improving
business relationships with customers, assisting in customer retention and driving
sales growth. CRM systems are designed to compile information on customers across
different channels or points of contact between the customer and the company which
could include the company's website, telephone, live chat, direct mail, marketing
materials and social media. CRM systems can also give customer-facing staff detailed
information on customers' personal information, purchase history, buying preferences
and concerns.

Customer relationship Management has three important elements to its

success story. They are people, process and technology. People within the
organisation like staff and managers need to support customer relationship
management (CRM). Customer relationship Management process must be properly
investigated and planned to support the CRM initiative and locating the right
technology to enhance the processes, provide staff with the best data as well as being
user friendly.

CRM defines the process of the company are fully occupied with acquiring
customers, selling the product to customers and maintaining a long term relationship
to a customer. CRM is actually a tremendous step forward in creating a system that
can provide a means for retailing individual loyalty in a world of nearly seven billion
souls. CRM helps in order to changing nature of the customer because customers are
not what they used to be. Customer Relationship Management (CRM) has been
defined in many ways. It is defined as a business strategy that is designed to reduce
cost and increase profit, respond to company's needs for both current and potential
customers in order to build relationship value. This strategy is mainly focus on
customers need and behaviour to help create a close relationship between the
customers and the business.

39
The art of managing the organization’s relationship with the customers and
prospective clients refer to customer relationship management.

Customer relationship management includes various strategies and techniques to

maintain healthy relationship with the organization’s existing as well as potential
customers. Organizations must ensure customers are satisfied with their products and
services for higher customer retention. Remember one satisfied customer brings ten
new customers with him where as one dissatisfied customer takes away ten customers
along with him.

In simpler words, customer relationship management refers to the study of needs and
expectations of the customers and providing them the right solution.

ORIGIN OF CRM

CRM originated in early 1970s when the business units had a manifestation
that it would be advisable to become ‘customer emphatic’ rather that ‘product
emphatic’. Birth of CRM was because of this heedful perceptiveness.

The famous writer and management consultant Peter Drucker wrote; ‘The true
business of every company is to make and keep customers’. Traditionally every
transaction was on paper and dependent on goodwill which created hindrance in
clutching customers. People used to work hard in entertaining customers by
presenting new products with astonishing services; they were ready to work overtime
for grasping more and more customers for increasing business. This too resulted in
customer satisfaction and loyalty up to some extent, but at the end of the day there
was no such bonding or relation between the two to carry on with future business
smoothly.

Previously business was quite easy as it was mere a one-to-one dealing

without any specific process. But with time, due to incoming complexities in
communication, it found itself in troubled waters. Emerging of new strategies and
technologies in global marketplace and a mammoth degree of competition in business,
the approach needed to be changed to proactive rather than reactive. Origination of
CRM turned out to be a piece of cake for all suppliers and customers due to its
advantages. Customer relationship management came as a process that dealt with
relationships with customers surpassing the whole business
40
AIM OF CRM

The CRM is a new technique in marketing where the marketer tries to

develop long term relationship with the customers to develop them as life time
customers. CRM aims to make the customer climb up the ladder of loyalty. The
company first tries to determine who are likely to prospects i.e. the people who have a
strong potential interest in the product and ability to pay for it. The company hopes to
convert many of its qualified prospect into first time customers and then to convert
those first time customers into repeat customers. Then the company tries to convert
these repeat customers into clients – they are those people who buy only from the
company in the relevant product categories. The next challenge for the company is to
convert these clients into advocates. Advocates are those clients who praise the
company and encourage others to buy from it.

The ultimate challenge is to convert these advocates into partners where the
customers and the clients work actively together to discover ways of getting mutual
benefit. Thus in CRM the key performance figure is not just current market share but
share of life time value by converting customers into partners. In CRM the company
tries to identify that small percentage (20%) of key account holders whose
contribution to the company revenues is high (80%). So from this point of view, CRM
is also known as. KEY ACCOUNT MANAGEMENT.

CRM Goals and Objectives

1 - Customer Satisfaction

Every company needs their customers to be satisfied. Satisfied customers

are more likely to return to make further purchases, as well as to promote a
company’s good name and recommend services to others. Customers more than ever
want to feel engaged with the companies that they are dealing with, one way CRM
can help with this is through contact management. Contact management software
allows you to track each customer interaction, so your customers feel like you
personally remember every interaction you have had with them. This gives your client
a more enjoyable, personalized customer experience and can be the key to smoothing
sales.

41
2 - Become More Efficient

Implementing CRM software helps your customer service team react to

customer queries and concerns more quickly and efficiently, which will boost
productivity as well as customer satisfaction. In sales and marketing departments,
CRM can even help track all leads and campaigns from beginning to end, making the
entire process more effective.

3 - Produce Better Marketing Campaigns

As well as making the process of conducting a marketing campaign

easier, CRM software can also help you design the most efficient campaign. With the
data provided by these various campaigns, you will have an extremely well-rounded
view of what makes certain audiences tick and what doesn't. By knowing your target
market and how your audience responds to communications, you will be able to easily
segment your customers to produce more effective marketing campaigns.

CRM data can enable you to quickly profile target groups which may be not be
performing as well as they could be, in order to try and boost this area of your
business, with the goal of increasing profits.

4 - Attract New Customers

CRM software will discover useful information about your customer base
and allow you to work out where there are gaps that need to be filled. Exploring the
reasons why customers fail to make purchases or why they do not rate your
company’s services can help you adapt new policies and techniques which will help
you attract new customers.

5 - Boost Sales

Improving the way your business operates and how customers interact with it,
while producing effective marketing campaigns, will help with people's perception of
your business. It will also encourage new sales while accounting for a higher level of
customer retention.

42
Features of CRM

Customer Relationship Management is a strategy which is customized

by an organization to manage and administrate its customers and vendors in an
efficient manner for achieving excellence in business. It is primarily entangled with
following features:

 Customers Needs-

An organization can never assume what actually a customer needs. Hence it

is extremely important to interview a customer about all the likes and dislikes so that
the actual needs can be ascertained and prioritized. Without modulating the actual
needs it is arduous to serve the customer effectively and maintain a long-term deal.

 Customers Response-

Customer response is the reaction by the organization to the queries and

activities of the customer. Dealing with these queries intelligently is very important as
small misunderstandings could convey unalike perceptions. Success totally depends
on the understanding and interpreting these queries and then working out to provide
the best solution. During this situation if the supplier wins to satisfy the customer by
properly answering to his queries, he succeeds in explicating a professional and
emotional relationship with him.

 Customer Satisfaction-

Customer satisfaction is the measure of how the needs and responses are
collaborated and delivered to excel customer expectation. In today’s competitive
business marketplace, customer satisfaction is an important performance exponent
and basic differentiator of business strategies. Hence, the more is customer
satisfaction; more is the business and the bonding with customer.

 Customer Loyalty-

Customer loyalty is the tendency of the customer to remain in business with a

particular supplier and buy the products regularly. This is usually seen when a
customer is very much satisfied by the supplier and re-visits the organization for
business deals, or when he is tended towards re-buying a particular product or brand
over times by that supplier. To continue the customer loyalty the most important

43
aspect an organization should focus on is customer satisfaction. Hence, customer
loyalty is an influencing aspect of CRM and is always crucial for business success.

 Customer Retention-

Customer retention is a strategic process to keep or retain the existing

customers and not letting them to diverge or defect to other suppliers or organization
for business. Usually a loyal customer is tended towards sticking to a particular brand
or product as far as his basic needs continue to be properly fulfilled. He does not opt
for taking a risk in going for a new product. More is the possibility to retain customers
the more is the probability of net growth of business.

 Customer Complaints-

Always there exists a challenge for suppliers to deal with complaints

raised by customers. Normally raising a complaint indicates the act of dissatisfaction
of the customer. There can be several reasons for a customer to launch a complaint. A
genuine reason can also exist due to which the customer is dissatisfied but sometimes
complaints are launched due to some sort of misunderstanding in analyzing and
interpreting the conditions of the deal provided by the supplier regarding any product
or service. Handling these complaints to ultimate satisfaction of the customer is
substantial for any organization and hence it is essential for them to have predefined
set of process in CRM to deal with these complaints and efficiently resolve it in no
time.

 Customer Service-

In an organization Customer Service is the process of delivering information

and services regarding all the products and brands. Customer satisfaction depends on
quality of service provided to him by the supplier. The organization has not only to
elaborate and clarify the details of the services to be provided to the customer but also
to abide with the conditions as well. If the quality and trend of service go beyond
customer’s expectation, the organization is supposed to have a good business with
customers.

Let it be a newly brought up enterprise or a well established organization

the above aspects prove to be of prime importance in dealing with a genuine customer
through a well organized CRM system.

44
Steps to Customer Relationship Management

 It is essential for the sales representatives to understand the needs, interest as

well as budget of the customers.
 Never tell lies to the customers.
 It is a sin to make customers waiting.
 A sales professional should think from the customer’s perspective
 Don’t oversell
 An individual needs time to develop trust in you and your product.
 Never be rude to customers.
 Attend sales meeting with a cool mind
 Keep in touch with the customers even after the deal.
 The sales manger must provide necessary training to the sales team to teach
them how to interact with the customers.

Importance of Customer Relationship Management

CRM is about building relationship with the customer, it is beyond selling and
marketing. It helps in knowing customer needs and future needs. Retaining existing
customers is very important because the time, effort and money involved in finding
new customer base are huge. CRM helps to understand customers, customer issues,
customer needs in a better way.
The following are the advantages of CRM

 Track Customer needs, issues, interactions

 Improves the customer relationships, retains customers

 Analyzes customers needs, behaviors

 Collaborates the organization workflows

 Cost saving, Reduces costs involved in customer service

 Organization Profits improves

 Improves the sales and helps in marketing

45
  Allows to predict the business needs
 Companies position in market increases

CRM benefits for customer

With CRM systems customers are served better on day to day process and
with more reliable information their demand of self service from companies will
decrease. If there is less need to contact with the company for different
problems, customer satisfaction level increases. These central benefits of CRM will
be connected hypothetically to the three kinds of equity that are relationship, value
and brand, and in the end to customer equity. Seven benefits were recognized to
provide value drivers.

1. Enhanced ability to target profitable customers.

2. Integrated assistance across channels
3. Enhanced sales force efficiency and effectiveness
4. Improved pricing
5. Customized products and services
6. Improved customer service efficiency and effectiveness
7. Individualized marketing messages also called as campaigns
Improving CRM within a firm

It is important for companies establishing strong CRM systems to improve their

relational intelligence. According to this argument, a company must recognize that
people have many different types of relationships with different brands.

 Analyzing the information

Managers must understand the different reasons for the types of relationships, and
provide the customer with what they are looking for. Companies can collect this
information by using surveys, interviews, and more, with current customers. For
example, Frito-Lay conducted many ethnographic interviews with customers to try
and understand the relationships they wanted with the companies and the brands.
They found that most customers were adults who used the product to feel more
playful. They may have enjoyed the company's bright orange color, messiness and
shape.

46
Companies must also improve their relational intelligence of their CRM systems.
These days, companies store and receive huge amounts of data through emails, online
chat sessions, phone calls, and more. Many companies do not properly make use of
this great amount of data, however. All of these are signs of what types of
relationships the customer wants with the firm, and therefore companies may consider
investing more time and effort in building out their relational intelligence. Companies
can use data mining technologies and web searches to understand relational
signals. Social media such as Facebook, Twitter, blogs, etc. is also a very important
factor in picking up and analyzing information. Understanding the customer and
capturing this data allows companies to convert customer's signals into information
and knowledge that the firm can use to understand a potential customer's desired
relations with a brand.

It is also very important to analyze all of this information to determine which

relationships prove the most valuable. This helps convert data into profits for the firm.
Stronger bonds contribute to building market share. By managing different portfolios
for different segments of the customer base, the firm can achieve strategic goals.

 Employee training

Many firms have also implemented training programs to teach employees how to
recognize and effectively create strong customer-brand relationships. For
example, Harley Davidson sent its employees on the road with customers, who were
motorcycle enthusiasts, to help solidify relationships. Other employees have also been
trained in social psychology and the social sciences to help bolster strong customer
relationships. Customer service representatives must be educated to value customer
relationships, and trained to understand existing customer profiles. Even the finance
and legal departments should understand how to manage and build relationships with
customers.

 Reviewing processes and designing new processes

Firms that do not have well-designed and logical processes cannot be successful in
achieving their goals. Companies should define their business goals and evaluate their
CRM processes to improve and expand to fit their needs.

47
 Applying new technologies is also helpful because using CRM systems
requires changes in infrastructure of the organization as well as deployment of new
technologies such as business rules, databases and information technology.

Types of CRM

In the past twenty years, the focus of global markets has shifted from sellers
to customers. Today, customers are more powerful than sellers, if we consider the
driving factors of market. We have different types of CRM according to the changes
in customer portfolios, speed of business operations, requirement of handling large
data, and the need of sharing information, resources, and efforts jointly.

CRM systems are divided based on their prominent characteristics. There are four
basic types of CRM systems –

1. Strategic CRM
Strategic CRM is a type of CRM in which the business puts the
customers first. It collects, segregates, and applies information about customers and
market trends to come up with better value proposition for the customer.

The business considers the customers’ voice important for its survival. In contrast to
Product Centric CRM (where the business assumes customer requirements and
focuses on developing the product that may sometimes lead to over-engineering),
here the business constantly keeps learning about the customer requirements and
adapting to them.

These businesses know the buying behavior of the customer that happy customers
buy more frequently than rest of the customers. If any business is not considering
this type of CRM, then it risks losing the market share to those businesses, which
excel at strategic CRM.

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 2. Operational CRM
Operational CRM is oriented towards customer-centric business
processes such as marketing, selling, and services. It includes the following
automations: Sales Force Automation, Marketing Automation, and Service
Automation.

Sales force is the best suitable CRM for large established businesses and Zoho is the
best CRM for growing or small scale businesses.

a. Sales Force Automation

SFA is the application of technology to manage selling activities. It standardizes a
sales cycle and common terminology for sales issues among all the sales employees
of a business. It includes the following modules .

Product Configuration − It enables salespersons or customers themselves to

automatically design the product and decide the price for a customized product. It is
based on if-then-else structure.

 Quotation and Proposal Management − The salesperson can generate a

quotation of the product prices and proposal for the customer by entering
details such as customer name, delivery requirements, product code, number
of pieces, etc.

 Accounts Management − It manages inward entries, credit and debit

amounts for various transactions, and stores transaction details as records.

 Lead Management − It lets the users qualify leads and assigns them to
appropriate salespersons.

 Contact Management − It is enabled with the features such as customers’

contact details, salespersons’ calendar, and automatic dialing numbers. These
all are stored in the form of computerized records. Using this application, a
user can communicate effectively with the customers.

 Opportunity Management − It lets the users identify and follow leads from
lead status to closure and beyond closure.

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 b. Marketing Automation
Marketing automation involves market segmentation, campaigns management,
event-based marketing, and promotions. The campaign modules of Marketing
Automation enable the marketing force to access customer-related data for
designing, executing and evaluating targeted offers, and communications.

Event-based (trigger) marketing is all about messaging and presenting offers at a

particular time. For example, a customer calls the customer care number and asks
about the rate of interest for credit card payment. This event is read by CRM as the
customer is comparing interest rates and can be diverted to another business for a
better deal. In such cases, a customized offer is triggered to retain the customer.

c. Service Automation
Service automation involves service level management, resolving issues or cases,
and addressing inbound communication. It involves diagnosing and solving the
issues about product.

With the help of Interactive Voice Response (IVR) system, a customer can interact
with business computers by entering appropriate menu options. Automatic call
routing to the most capable employee can be done.

Consumer products are serviced at retail outlets at the first contact. In case of
equipment placed on field, the service expert may require product servicing manual,
spare parts manual, or any other related support on laptop. That can be availed in
service automation.

3. Analytical CRM
Analytical CRM is based on capturing, interpreting, segregating, storing, modifying,
processing, and reporting customer-related data. It also contains internal business
wide data such as Sales Data (products, volume, purchasing history), Finance
Data (purchase history, credit score) and Marketing Data (response to campaign
figures, customer loyalty schemes data). Base CRM is an example of analytical
CRM. It provides detailed analytics and customized reports.

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 Business intelligence organizations that provide customers’ demographics
and lifestyle data over a large area pay a lot of attention to internal data to get more
detail information such as, “Who are most valuable customers?”, “Which consumers
responded positively to the last campaign and converted?”, etc.

Analytical CRM can set different selling approaches to different customer segments.
In addition, different content and styling can be offered to different customer
segments. For the customers, analytical CRM gives customized and timely solutions
to the problems. For the business, it gives more prospects for sales, and customer
acquisition and retention.

4. Collaborative CRM
Collaborative CRM is an alignment of resources and strategies between
separate businesses for identifying, acquiring, developing, retaining, and maintaining
valuable customers. It is employed in B2B scenario, where multiple businesses can
conduct product development, market research, and marketing jointly.

Collaborative CRM enables smooth communication and transactions

among businesses. Though traditional ways such as air mail, telephone, and fax are
used in communication, collaborative CRM employs new communication systems
such as chat rooms, web forums, Voice over Internet Protocol (VoIP), and Electronic
Data Interchange (EDI). There are collaborative CRMs with in-built Partner
Relationship Management (PRM) software application which helps in managing
partner promotions. Sugar CRM is a popular collaborative CRM. It enables expert
collaboration and provides state-of-the-art social capabilities.

CRM Software Buying Considerations

A business needs to consider the following points while selecting CRM software −

 Business strategy and processes − It helps to automate a customer

management strategy. Hence before selecting CRM software, a business
should be clear with its strategies and desired processes.

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  Business requirements − CRM systems range from domain specialty
solutions that focus on solving a specific area such as sales force automation,
marketing automation, services automation, partner management, etc., to
complete enterprise management solutions.

 Size of business − Small businesses require tools that are easy to learn and
can handle a wide range of the most common tasks. Large businesses opt for
applications that handle more complex tasks and thousands of users.

 Customer base − The size of the customer base a business is required to

handle.

 Budget − A business needs to set a budget prior vendor selection. The budget
allocated for CRM varies according to the degree of customization required.

 Context − The context in which a business is functioning, e.g., B2B or B2C,

determines which CRM the business should go for.

 Sales channels − The sales channels a business is employing: Direct sale,

channel sale such as distributors, or Direct to customers via retail. They
matter while selecting the most suitable CRM software.

 System integration − All the interfaces the business needs and the CRM
vendor can support without requiring too much custom services effort.

 Strength of partners − The partners must be able to provide a business with

additional support, or help to implement the CRM successfully.

CRM systems in practice

 Call centers

As well as tracking, recording and storing customer information, CRM

systems in call centers codify the interactions between company and customers by
using analytics and key performance indicators to give the users information on where
to focus their marketing and customer service. The intention is to maximize average
revenue per user, decrease churn rate and decrease idle and unproductive contact with
the customers.

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 CRM software can also be used to identify and reward loyal customers
over a period of time. Growing in popularity is the idea of gamifying, or using game
design elements and game principles in a non-game environment such as customer
service environments. The gratification of customer service environments includes
providing elements found in games like rewards and bonus points to customer service
representatives as a method of feedback for a job well done. The repetitive act of
answering support calls all day can be draining, even for the most enthusiastic
customer service representative. When agents are bored with their work, they become
less engaged and less motivated to do their jobs well, making it likely for them to
make mistakes. Gamification tools can motivate agents by tapping into their desire for
rewards, recognition, achievements, and competition.

 Contact center automation

Contact center automation, the practice of having an integrated system that

coordinates contacts between an organization and the public, is designed to reduce the
repetitive and tedious parts of a contact center agent's job. Automation prevents this
by having pre-recorded audio messages that help customers solve their problems. For
example, an automated contact center may be able to re-route a customer through a
series of commands asking him or her to select a certain number in order to speak
with a particular contact center agent who specializes in the field in which the
customer has a question. Software tools can also integrate with the agent's desktop
tools to handle customer questions and requests. This also saves time on behalf of the
employees.

 Social media

Social CRM involves the use of social media and technology to engage and learn
from consumers. Because the public, especially among young people, has
increasingly using social networking sites, companies use these sites to draw attention
to their products, services and brands, with the aim of building up customer
relationships to increase demand. Some CRM systems integrate social media sites like
Twitter, LinkedIn and Facebook to track and communicate with customers. These
customers also share their own opinions and experiences with a company's products
and services, giving these firms more insight. Therefore, these firms can both share
their own opinions and also track the opinions of their customers.

53
 Enterprise feedback management software platforms, such as Confirmit,
Medallia, and Satmetrix, combine internal survey data with trends identified through
social media to allow businesses to make more accurate decisions on which products
to supply.

 Location-based services

CRM systems can also include technologies that create geographic marketing
campaigns. The systems take in information based on a customer’s physical location
and sometimes integrate it with popular location-based GPS applications. It can be
used for networking or contact management as well to help increase sales based on
location.

 CRM systems for business-to-business transactions

According to a Sweeney Group definition, CRM is "all the tools, technologies and
procedures to manage, improve, or facilitate sales, support and related interactions
with customers, prospects, and business partners throughout the enterprise".The quote
assumes that CRM is involved in every Business-to-Business (B2B) transaction.
Despite the general notion that CRM systems were created for the customer-centric
businesses, they can also be applied to B2B environments to streamline and improve
customer management conditions. For the best level of CRM operation in a B2B
environment, the software must be personalized and delivered at individual levels.

The main differences between business-to-consumer (B2C) and business-to-

business CRM systems concern aspects like sizing of contact databases and length of
relationships. Business-to-business companies tend to have smaller contact databases
than business-to-consumer the volume of sales in business-to-business is relatively
small. There are fewer figure propositions in business-to-business, but in some cases,
they cost a lot more than business-to-consumer items and relationships in business-to-
business environment are built over a longer period of time. Further business-to-
business CRM must be easily integrated with products from other companies. Such
integration enables the creation of forecasts about customer behavior based on their
buying history, bills, business success, etc.

An application for a business-to-business company must have a function to

connect all the contacts, processes and deals among the customers segment and then
prepare a paper. Automation of sales process is an important requirement for

54
business-to-business products. It should effectively manage the deal and progress it
through all the phases towards signing. Finally, a crucial point is personalization. It
helps the business-to-business company to create and maintain strong and long-lasting
relationship with the customer.

55
 DATA ANALYSIS AND INTERPRETATION

1. Who are your customers?

OPINION NO.OF RESPONDENTS PERCENTAGE

Whole Seller 25 25

Retailers 30 30

Both 45 45

Total 100 100

PERCENTAGE
45
45
40
35 30
30 25
25
20
15
10
5
0
Whole Seller Retailers Both

INTERPRETATION:

The customers of the Chowdary Spinners Limited were 25% are whole
seller, 30% are retailers and 45 % are both.

56
 2. Do you communicate results of your customer satisfaction surveys regularly
throughout the company?

OPTION NO. OF RESPONDENTS PERCENTAGE

Strongly Agree 60 60

Agree 30 30

Strongly Disagree 05 05

Disagree 05 05

Total 100 100

PERCENTAGE
60
60

50

40
30
30

20

10 5 5

0
Strongly Agree Agree Strongly Disagree Disagree

INTERPRETATION:

Most of the respondents agreed that customer satisfaction surveys regularly done
throughout the company.

57
 3. How do you get customer comments and complaints?

OPTION NO. OF RESPONDENTS PERCENTAGE

Face to face interview 50 50

Toll free numbers, 30 30

formal Surveys

Other means 20 20

Total 100 100

PERCENTAGE
50

40

30 50

20
30
10 20

0
Face to Surveys Any
face other
interview means

INTERPRETATION:

Most of the respondents opined get information about the customers of Chowdary
Spinners Limited through face to face interview of 50%, 30% opined through surveys
& 20% opined that through other means respectively.

58
 4. Do you analyze channel effectiveness? i.e. which channel is most effective in

serving the customer?

OPTION NO. OF RESPONDENTS PERCENTAGE

Yes 60 60

No 40 40

Total 100 100

PERCENTAGE

40

60

INTERPRETATION:

It has been observed that most of the respondents feel that channel is most
effective in serving the customer. Yet 40% of the respondents expressed that channel
is not most effective in serving the customer.

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 5. Do you provide credit facility to your customers?

OPTION NO. OF RESPONDENTS PERCENTAGE

Yes 80 80

No 20 20

Total 100 100

PERCENTAGE
80
80
70
60
50
40
30 20
20
10
0
Yes No

INTERPRETATION:

It is observed that 80% of the respondents say the company is providing credit
facility .20% of the respondents says the company is providing not credit facility.

60
 6. Do you customize your product or services according to the customer?

OPTION NO. OF RESPONDENTS PERCENTAGE

Strongly Agree 45 45

Agree 20 20

Strongly Disagree 20 20

Disagree 15 15

Total 100 100

PERCENTAGE
45
45
40
35
30
25 20 20
20 15
15
10
5
0
Strongly Agree Agree Strongly Disagree Disagree

INTERPRETATION:

It is identified that 45% of respondents strongly expressed that the company

customize their product or services according to the customer. 20% of respondents are
agree, 20% of respondents are strongly disagree & 15% of respondents are disagree.

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 7. Is there commitment from top management to support the customer-
focused service concept?

OPTION NO. OF RESPONDENTS PERCENTAGE

Very Rarely 20 20

Rarely 20 20

Always 60 60

Total 100 100

PERCENTAGE
60
60

50

40

30
20 20
20

10

0
Very Rarely Always
Rarely

INTERPRETATION:

It is observed that 60% of respondents opined that there is always commitment from
top management to support the customer-focused service concept.20% of respondents
opined that rarely and 20% of respondents opined that very rarely.

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 8. Is there any improvement in customer retention and loyalty?

OPTION NO. OF RESPONDENTS PERCENTAGE

Yes 70 70

No 30 30

Total 100 100

PERCENTAGE

30

Yes
No

70

INTERPRETATION:

It is noticed that 70% of respondents say yes there is an improvement in customer

retention and loyalty.30% of respondents say no.

63
 9. How well did CRM applications or systems help you in understanding your
customers?

OPTION NO. OF RESPONDENTS PERCENTAGE

Excellent 60 60

Very Good 20 20

Average 5 5

Poor 15 15

Total 100 100

PERCENTAGE
60
60

50

40

30
20
20 15

10 5

0
Excellent Very Good Average Poor

INTERPRETATION:

It is observed that 60% of respondents opined that CRM applications or systems help
in understanding customers was excellent 20% of respondents opined very good .5 %
of respondents opined average.15% of respondents opined poor.

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 10. Would you say that the CRM systems solved your business problems or
make you understand your customers and improve your overall business
performance?

OPTION NO. OF RESPONDENTS PERCENTAGE

Yes 80 80

No 10 10

Can’t Say 10 10

Total 100 100

PERCENTAGE
80
80
70
60
50
40
30
20 10 10
10
0
Yes No Can’t Say

INTERPRETATION:

The above graph and table indicates that 80% of respondents expressed as yes that
CRM systems solved business and improve overall business performance.10% of
respondents say no and 10 % of respondents opined as can’t say.

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 11. How useful is CRM from business performance perspective?

OPTION NO. OF RESPONDENTS PERCENTAGE

Extremely useful 40 40

Very useful 25 25

Moderately useful 20 20

Slightly useful 10 10

Not at all useful 5 5

Total 100 100

PERCENTAGE
40
40
35
30 25
25 20
20
15 10
10 5
5
0
Extremely usefulVery useful
Moderately useful
Slightly useful
Not at all useful

INTERPRETATION:

The above table and graph indicates about CRM from business performance
perspective by most of the respondents 40% were extremely useful , 25% very useful
20% of moderately useful, and 15% were slightly useful 5% were not all useful.

66
 12. How important is CRM to your business?

OPTION NO. OF RESPONDENTS PERCENTAGE

Extremely important 60 60

Very important 20 20

Moderately important 5 5

Slightly important 15 15
0 0
Not at all important

Total 100 100

PERCENTAGE
60
60

50

40

30
20
20 15

10 5
0
0
Extremely important
Very important
Moderately important
Slightly important
Not at all important

INTERPRETATION:

The above table and graph indicates about importance of CRM to

business. Most of the respondents 60% were opined extremely important, 20% were
opined very important 5% were opined moderately important, 15% were opined
slightly important and 0% was opined not at all important.

67
 13. Do you use the date collected by the CRM applications to design new
products or set a new business strategy?

OPTION NO. OF RESPONDENTS PERCENTAGE

Yes I use the data 80 80

No I used the data 10 10

Sometimes 10 10

Total 100 100

PERCENTAGE
80
80
70
60
50
40
30
20 10 10
10
0
Yes I use the data No I never used the data Sometimes

INTERPRETATION:

The above table and graph indicates by most of the respondents 80 say yes about
CRM applications to design new products or set a new business strategy and 10% say
no and 10% say sometimes.

68
 14. Overall, are you satisfied with the results of the CRM system?

OPTIONS RESPONDENTS PERCENTAGE

Highly Satisfied 70 70

Satisfied 10 10

Neutral 10 10

Unsatisfied 10 10

Total 100 100

PERCENTAGE
70
70
60
50
40
30
20 10 10 10
10
0
Highly Satisfied Neutral Unsatisfied
Satisfied

INTERPRETATION:

It is observed that 70% of respondents were highly satisfied 10 % of

respondents were satisfied 10% of respondents were neutral and 10 % of respondents
were unsatisfied with the results of the CRM system

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 FINDINGS

 It is found that the Chowdary Spinners Limited is following good customer

relationship strategies.

 It is found that the CRM applications are essential for new products or to
setup a new business strategy

 It is identified that the company’s products and services are customized

according to the needs of the customers.

 It is observed that the comments and complaints are taken from customers
through face to face interviews, they are welcomed and resolved quickly and
positivity as soon as possible.

 It is found that the company is conducting customer satisfaction surveys

through research agencies.

 It is identified that the company provides credit facility to its customers up to

90 days. If the customers pay within 7 days they are given 4% cash discount.

 It is observed that the company’s channel of distribution is at good level and

satisfied by the customers.

 It is observed that the company is focusing more on customer service to get

more customer satisfaction.

70
 SUGGESTIONS

 It is suggested that the company has to be flexible in its rules and procedures
for the customers favour.

 It is recommended that the company has to take comments and complaints

from the customers not only through face to face interviews but also through
surveys.

 It is suggested that the company has to provide cash discount to attract more
customers.

 It is suggest that company has to maintain stronger customer bonding by

providing social and financial benefits.

 It is recommended that the company has to use information technology for

CRM applications to make the marketing efforts easy and accurate.

 It is suggested that the company has to still improve channels of distribution to

get best relationships with the customers.

 It is recommended that the company has to focus more customer service to

retain more customers.

71
 BIBLIOGRAPHY

 Author : H.Peer Mohammed

Title of Text Book: Customer Relationship Management
Publisher: Vikas

 Author : ND Panwar, J.S. Beyond

Title of Text Book: Consumer Marketing
Publisher: Sage Response Books, New Delhi.

 Author : Mukesh Chaturvedi and Abhivan Chaturvedi

Title of Text Book: Customer Relationship Management an Indian
Perspective.
Publisher: Excel Books.

WEBSITES

www.chowdaryspinners.com

www.managementstudyguide.com

www.netmba.com

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