BSH MCP Prefinal Print

Customer Relationship Management practices at Girias India Dharwad
Executive Summary:
During the recent years the world of business has changed vastly. We the people of different
walks of life cannot be able to imagine that what is going to be the future picture, if this change
continues at this speed. Today there are very much competition in-between them and for that
reason each and every business organization are trying to offer competitively better facilities for
their customers compared to their competitors.
The approaches in marketing functions are changing very fast in tune with the changing
challenges n changing behavior of customers. The focus of transactional marketing approach was
on individual transaction and does not concern continuous relationships with customers.
Customer was viewed as outsiders to the business. On other hand customer relationship
management focuses on more widely on customers and on entire functions connected with the
customization of relationship, enhancing customer loyalty and life time of the customer with the
organization. Simply put, organizations have discovered competitive advantage and growth
driver, among others, through CRM.
Since consumers are the primary reason that businesses exist, marketing has become the core
component for successful management of the organization. For most businesses, marketing can
account for almost 50% of the product sale price, provided services such as distribution and
promotion are accounted for in this.
For any business to succeed with its consumers, they need to establish a working relationship
that understands the customer. One way of doing so is by implementing CRM. The term CRM is
used to define the tools and methodologies used by an enterprise to manage the relationships it
has with its customers. It forms the foundation by which a company brings sense to the needs of
customers and can analyze the future changes that could develop. As knowledge is important in
gaining competitive advantage in a challenging market, companies make every effort to
differentiate themselves and retain customers, while reducing operational costs. Another view of
looking at CRM is as a process of learning, by which organizations can develop stronger
relationships with customers having gained information on their needs and behaviors.
Kousali Institute of Management Studies, Karnataka University Dharwad Page 1

Retail sector plays an important role in India’s GDP growth and there business is customer
driven in order to retain a large percentage of customers and attracting new customers practicing
of CRM plays key role for their success.
Retailing today occupies a key role in the world economy. It must be concisely and clearly
defined; retailing includes all the activities involved in selling goods or services directly to final
consumers for personal, non-business use. India retailing as seen in sprawling shopping center,
multistoried malls and huge complexes offer shopping, entertainment and food all under one
roof. In India shopping malls are growing much more Shopping mall offers customers the
possibility to be anything or anybody they want to be, it gives them opportunity to be free and
independent even if it’s just for a passing moment. CRM is potentially a useful concept in the
marketing and customer services areas of a retail sector. CRM stands to be the survival mantra.
Managing customer relationship effectively and effectively boots customer satisfaction and
retention rates. CRM involves shopping malls enabled business processes that identify, develop,
integrate and focus a business’ competencies on forging valuable long-term relationships that
deliver superior value to its customers.
The highly demanding and knowledgeable consumers are compelling retailers to stock a huge
product range, offer attractive discounts in an aesthetically set up environment and soon all in the
hope of having a loyal customer base so, customer relationship management may be referred to
as a philosophy a set of strategies, programmer and system which focuses on identifying and
building loyalty with the retail outlet malls most valued customers. This means that CRM will
work on the principle that retailers have to chat out programmes which will help them to raise
their profitability ones continuous basis though building long-term relationship with their
customer’s customer Relationship management is a company business strategy designed to
reduce cost and increase profitability by solidifying customer loyalty. CRM practices may shift
with each form. Nevertheless, organized retail shopping malls will benefit from the resources it
commits to developing its CRM practices in greater customer loyalty.
Retailing today occupies a key role in the world economy. It must be concisely and clearly
defined; retailing includes all the activities involved in selling goods or services directly to final
consumers for personal, non-business use. India retailing as seen in sprawling shopping center,
multistoried malls and huge complexes offer shopping, entertainment and food all under one

roof. In India shopping malls are growing much more Shopping mall offers customers the
possibility to be anything or anybody they want to be, it gives them opportunity to be free and
independent even if it’s just for a passing moment.CRM is potentially a useful concept in the
marketing and customer services areas of a retail sector.CRM stands to be the survival mantra.
Managing customer relationship effectively and effectively boots customer satisfaction and
retention rates. CRM involves shopping malls enabled business processes that identify, develop,
integrate and focus a business’ competencies on forging valuable long-term relationships that
deliver superior value to its customers.
Today Girias being a Electronic Retail stores which has been facing a immense competition from
national players in same business area like Tata Croma, Reliance Digital and other players from
local like Regional stores Harsha. The present CRM practices being practiced needs to be
upgraded with the computerization as well using more automated CRM software’s which can be
cost effective for the organization.

Need of the study:

In today’s intensely competitive, rapidly changing & highly complex business environment
characterized by diminishing customer loyalty, the need to be market focused & customer
centric is more critical than any other time in past. Firms use technology as a key tool to enhance
the information flow within their business units(Retail outlets), helping their employees better
understand the ever changing and increasing need and wants of their customers. It is certain that
the internet will continue to change the ways customers and organizations interact with one
another in terms of speed and ease. This fact requires that the integration of internet technology
into CRM activities occur at all levels throughout the organization. Thus, it would be wrong to
say that keeping its customer satisfied is in the best interests of the organizations.
The purpose of this study is to bring insight and deeper understanding into the objectives,
strategies and the expected benefits of CRM initiatives by the GIRIAS India Ltd.
Objectives:
1. The objective is to understand the CRM practices being carried out at Girias Inida ltd.
2. CRM practices vary in retail from other industry sectors.
3. To provide the solution for the challenges being faced by Girias India Dharwad branch
in comparison with their competitors.

Research Design:
Research design is the framework or plan for a study that guides the collection and analysis of
the data. It is a map or blue print according to which research is to be conducted. The research
design is given below.
Research methodology consisting of following steps:
The research design followed for this study is descriptive research for analyzing the collected
data for developing a macro by using MS-excel tool.
1. Collection of 100 customer data from secondary sources of the organization.

2. Analyzing the present CRM practices.
3. Developing a macro using excel for customer data.
4. Execution of the results and
5. Interpretation for CRM methods need to be improved in the organization.

Chapter-1
Introduction

1. Introduction of the study:

The word ‘retail’ originates from a French-Italian word ‘retailer’, meaning ‘to cut a piece off’ or
‘to break bulk’. In simple terms, it implies a first-hand transaction with the customer. When
individuals or groups left their community and settled elsewhere, some missed foodstuffs and
other goods that were only available in their birthplace. They arranged for some of these goods
to be sent to them, others in their newly adopted community enjoyed these goods and demand
grew. Similarly, new settlers discovered goods in their new surroundings that they dispatched
back to their birthplace, and once again, demand grew. This soon turned into a regular trade.
Although such trading routes expanded mainly through the growth of traveling salesmen and
then wholesalers, there were still instances where individuals purchased goods at long distance
for their own use. Thus, retailing as an activity can be traced back to the times when human
beings stopped producing all their requirements by themselves and trading came into being.
Communities such as potters, blacksmiths and fishmongers sold their products to households.
This was different from wholesale trade that led to spice routes from Kerala to Europe and
beyond through Afghanistan and to silk routes in India and China. Retailers have now become an
integral part of society. The new retail formats that are now seen have their genesis in Europe.
The earliest traders were believed to be the Cretans who sailed the Mediterranean and carried on
trade with the people of the area. This flourished for 2000 years; their culture influenced other
great trading civilizations major traders. They distributed the goods of Egypt and Babylonia.
Tyre, Sidon and Carthage were the principal trading cities of the empire. After the Phoenicians
came, the Romans established a different form of retailing; they set up numerous small shops
with centers. In fact, ancient ruins indicate that the worlds’ first department store was in Rome.
With the fall of this empire, retailing disintegrated. During the period after the fall of the Roman
Empire, independent peddlers were the only retailers. They carried their merchandise around on
their back. They went from village to village selling their wares. By the twelfth century artisans
and traders began to organize into ‘guilds’ and opened up small shops. These guilds helped them
gain social and economic advantages. During thirteenth century, fairs and markets flourished.
Early fairs often had a religious foundation. People would gather at churches and exchange
goods on feast days. Larger markets were also called fairs and people travelled long distance to
participate in these. Tea centers run by Lipton were the first chain of stores. At the start of the

twentieth century, markets were witnessing the precursors to the present-day retailing scenario:
The retailers, and not the products sold, was the brand.
• Family-owned retail units dominated the market, but large retail corporations were also
emerging in the form of corporate and cooperative stores.
• Small retailers were resisting the entry of large retailers.
• Many retailers and manufacturing had direct relationships.
• New technologies in transport and construction were influencing store decisions.
• International sourcing by retailers was also witnessed.
• City centre were becoming major points for comparison buying.
• Shopping centers were coming up at city centers and railways stations.
These developments were also witnessed in other countries, especially in North America. Large
corporations were entering into retailing in United States of America and Canada in the early
twentieth century. The history of America retailing can be traced back to shops located near ports
where merchants from Europe would dock their ships and sell the merchandise. Many Americans
retailing institutions originated after 1850. Prior to that, most Americans lived on farms and were
self-sufficient. During this time, peddlers and general stores were the only retailers in the
country. Department stores started gaining prominence after 1850. As department stores grew in
cities, rural citizens used the first form of direct catalogue/mail order marketing. This allowed
them to get the good they needed without the hassle of traveling long distances into the city. The
development of railroad system and refrigeration between 1890 and 1920 enabled shoppers to
travel more widely and choose from a greater assortment of merchandise. The first set of
department stores opened during this time. They offered more convenient and consolidated
locations, longer hours and better prices. Americans retailing witnessed the proliferation of other
formats such as supermarkets chains and shopping malls between the two World Wars. National
brands such as Wonder Bread and Hostess were introduced in the market during this time. The
first convenience store, 7-11 (Texas) and the First McDonald’s (Illinois) also opened. The time
between 1950 and 1970 witnessed the emergence of major players and formats. The first indoor
regional mall was set up by South dale. The next bog retail shift came when Sam Walton opened
the first Wal-Mart and discounters such as Kmart and Target opened their stores. These stores
used low costs and high turnovers to provide customers with lower prices. Kroger installed the

first retail barcode scanner and the first GAP store opened in San Francisco. Wal-Mart integrated
computer system to its operations. These mass retailers also set up independent distribution
systems to gain the volume necessary for negotiating with suppliers, track inventory, and allow
for just-in-time replenishment. In the next decade (1970-1980), the retail industry witnesses the
emergence of category killers and wholesale club stores such as Toys “R” Us, Home Depot,
Circuit City, Sam’s Club, and Us. The industry started being consolidated at this time. During
the 1980’s, superstores and retail category killers made up about one third of the over United
States retail revenues. In response to these price players, other formats such as malls, specialty
stores and grocery stores started stressing on ‘retailtainment’. Mall of America-the world’s
largest mall- opened on Minneapolis. Sears exited its general merchandise catalogue business.
This was the time when the retailers stated focusing on the ‘stores as brand’ strategy. The 1990s
can be termed as the times of the Internet. Amazon.com launched its book retailing business-
using ecommerce. This period also witnessed major internalization efforts by larger retailers. The
current decade is witnessing a lot of turbulence in the American retail industry. Retailers are
turning into multi-format entities, especially with the help of the Internet. The focus has shifted
to the emerging economies and retailers are searching for a different business model to succeed
in these markets ruled by small retailers. Retailing thus can be explained as an activity that
involves a direct interface with the customer and the coordination of business activities from end
to end-right from the concept or design stage of a product or offering, to its delivery and post
delivery service to the customer. The industry has contributed to the economic growth of many
countries and is undoubtedly one of the fastest changing and dynamic industries in the world
today. Retailing also involves the sale of merchandise from a fixed location, such as a store, for
direct consumption by the customer. It can be defined as an activity that ensures that customers
derive maximum value from the buying process. This involves activities and steps need to place
the merchandise made elsewhere into the hands of customers or to provide services to the
customers. Retailers organize the availability of merchandise on a large scale and supply them to
consumers on a relatively small scale. In the process, they provide the accessibility of location
and convenience of timing, size information and lifestyle support. When retailers perform these
activities, they create value for their customers, who pay for these services. These values are
created continuously through a combination of services, price, accessibility and experience. One
of the major roles played by retailers is to enable the adoption of products and services. Unless

the product is made available at the store as is adopted by the retailers themselves, it is difficult
to derive high values out of the marketing expenditure. The phenomenon, known as dual
adoption, states that when a product is launched, customers adopt it symbolically, the actual
adoption happens only when the retailers put forth the product in the right perspective. With
more and more customers, making purchase decisions at the store retailing has gone beyond
being a part of distribution function. It merits an independent marketing activity that is a
combination of distribution and communication. Moreover, the changing canvasses of
marketing, where physical products and physical space of activity are also being joined by
services and non-store retailing formats, pose new realities for retailers. They need to redefine
the ways they have been managing so far. There has to be a clear shift from a distribution-
oriented perspective, where physical aspects of merchandise availability and supply chain play
an important role to a more consumer-value-oriented perspective for attaining sustainable
competitive advantages.
1.1 History of Retailing in India:

Retailing as an occupation came into existence when farmers started producing more food than
they required. Trading was an important part of daily life in the ancient world. Different people
had different skill sets, and people who had a surplus of one good desired the goods they did not
have nor could not produce1. In India, the existence of the current kirana format and other shops
can be traced to the Manusmriti and Kautilya’s Arthshastra. These texts provided guidelines for
dealing with customers, after-sales service, and quality and price guarantees. Such scholarly
works provided the equivalence for exchange in case of barter. They also defined the tax
structure for retail and wholesale transactions. Kautilya commented on the location of stores
dealing in specific products in the city. He also discussed the manner in which fund and
investments could be managed for better results. Memoirs of traders who came from Europe
indicate that Indian merchants carried out business with low margins in order to enhance sales.
Indian history and archaeology record the existence of markets during the Harappan civilization
also. Elaborate descriptions of local and periodic haats have been found. These were the places
where commodity exchange was carried out and people congregated and derived several non-
economic values. Retail in India is still at a very early stage. Most retail firms are companies
from other industries that are now entering the retail sector because of its amazing potential.
There are only a handful of companies with a retail background. One such company is Nilgiri’s

from Bangalore that started as a dairy and incorporated other areas in its business with great
success. Their achievement has led to the arrival of numerous other players, most with the
backing of large groups, but usually not with a retail background. Most new entrants to the India
retail scene are real estate groups who see their access to and knowledge of land, location and
construction as prime factors for entering the market. New retail stores have traditionally started
operations in cities like Mumbai and Delhi where there has been an existing base of metropolitan
consumers with ready cash and global tastes. The new perspective to this trend is that new
entrants to the retail scenario should first enter smaller cities rather than focusing entirely on the
metro’s. Spending power in India is not concentrated any more in just the 4 metros (Delhi,
Mumbai, Chennai and Kolkata). Smaller but upcoming cities like Chandigarh, Coimbatore,
Pune, Ahmedabad, Baroda, Trivandrum, Cochin, Ludhiana, Shimla etc., will fast be catching up
to the metro’s in their spending capacity. Cities in South India have taken to the supermarket
style of shopping very eagerly and so far the maximum number of organized grocery and
department stores are in Chennai, Bangalore and Hyderabad. The north has a long way to go to
come up to par. International stores now prefer to gauge the reaction of the public in these cities
before investing heavily in a nation-wide expansion. Milou, the Swiss children’s wear retailer,
recently opened up its first store in Chennai, bypassing Delhi and Mumbai.
Besides the urban market, India’s rural market has just started to be seen as a viable option and
companies who understand what the rural consumer wants will grow to incredible heights. The
bulk of India’s population still live in rural areas and to be able to cater specifically to them will
mean generating tremendous amounts of business.
1.2 Categorization of Retail Industry:
The retailing sector of India can be split into two segments. They are the informal and the formal
retailing sector. The informal retailing sector is comprised of small retailers. As far as the formal
retailing sector is concerned, it is comprised of large retailers. If the retail industry is, divided
based on retail formats then it can be split into the modern format retailers and the traditional
format retailers. The modern format retailers comprise of the supermarkets, Hypermarkets,
Departmental Stores, Specialty Chains and Company Owned and Operated Retail Stores. The
traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple brand
outlets. The retail industry can also be subdivided into the organized and the unorganized sector.

Organized retailing refers to trading activities undertaken by licensed retailers i.e., those who are
registered for sales tax, income tax etc., these includes the big hypermarkets, retail chains and
privately owned large retail businesses. Organized retail is one of the most notable emerging
sectors of the Indian economy, continues to attract significant investments and interest from
leading national and international retail players. According to Indian Brand Equity Foundation
(IBEF)2 estimates, the retail sector in India is posed to grow from US$ 450 billion in 2012 to
US$ 574 billion by 2015, at a 16.50% annual growth rate. Organized retailers in India today
remain primarily focused on the essential building blocks of a successful retail model. However,
it is imperative that one understands the customers’ preferences and buying behavior. This
valuable information can be used to maximize Customer Lifetime Value (CLTV). On the other
hand, the unorganized sector mainly includes the local Kirana store and the mom and pop stores.
Most of the Indian Retail industry is characterized by an unorganized market but the growth of
the organized sector in the past few years has been incredible.

1.3. Introduction of the Customer Relationship Management:

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.
The process of developing a cooperative and collaborative relationship between the buyer and
seller is called customer relationship management shortly called CRM.
a).CRM (customer relationship management)
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. For example, an enterprise might build a database about its customers that
described relationships in sufficient detail so that management, salespeople, people providing
service, and perhaps the customer directly could access information, match customer needs with
product plans and offerings, remind customers of service requirements, know what other
products a customer had purchased, and so forth.
According to one industry view, CRM consists of:
1. Helping an enterprise to enable its marketing departments to identify and target

their best customers, manage marketing campaigns and generate quality leads for
the sales team.
2. Assisting the organization to improve telesales, account, and sales management
by optimizing information shared by multiple employees, and streamlining
existing processes (for example, taking orders using mobile devices)

3. Allowing the formation of individualized relationships with customers, with the

aim of improving customer satisfaction and maximizing profits; identifying the
most profitable customers and providing them the highest level of service.
4. Providing employees with the information and processes necessary to know their
customers understand and identify customer needs and effectively build
relationships between the company, its customer base, and distribution partners.

b).Aims 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
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.

c).Why – Customer Relationship Management
I. A satisfied customer in 10 years will bring 100 more customers to the company.
II. It costs 7 times more to attract a new customer than to serve an old one.
III. 20% of the company’s loyal customer’s account for 80% of its revenues.(Pareto’s
principle).
IV. The chances of selling to an existing customer are 1 in 2; the chances of selling to a new
customer are 1 in 16.

d).Benefits of Customer Relationship Management
A Customer Relationship Management system may be chosen because it is thought to provide

the following advantages:
a. Quality and efficiency

b. Decrease in overall costs
Decision support
c. Enterprise ability
d. Customer Attentions
e. Increase profitability
f. Improved planning
g. Improved product development
e).Customer service
CRM software provides a business with the ability to create, assign and manage requests made
by customers. An example would be Call Center software which helps to direct a customer to the
agent who can best help them with their current problem. Recognizing that this type of service is
an important factor in attracting and retaining customers, organizations are increasingly turning
to technology to help them improve their clients’ experience while aiming to increase efficiency
and minimize costs. CRM software can also be used to identify and reward loyal customers
which in turn will help customer retention. Even so, a 2009 study revealed that only 39% of
corporate executives believe their employees have the right tools and authority to solve client
problems.
f).Increase in customer retention
a. Customer satisfaction ratings improved

b. Service calls deflected from call center to online forum
c. Reduction in overall customer service costs

1.4. Marketing:
CRM systems for marketing help the enterprise identify and target potential clients and generate
leads for the sales team. A key marketing capability is tracking and measuring multichannel
campaigns, including email, search, social media, telephone and direct mail.
Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect
Relationship Management (PRM) solutions offer to track customer behavior and nurture them
from first contact to sale, often cutting out the active sales process altogether.
In a web-focused marketing CRM solution, organizations create and track specific web activities
that help develop the client relationship. These activities may include such activities as free
downloads, online video content, and online web presentations
I. Product- or company-related postings

II. Positive product comments, reviews
III. Visitors following link from social channel to online store’s URL
IV. Visitors referred to website from online friend.
1.5. Sales:
Sales Force Automation (SFA): involves using software to streamline all phases of the sales
process, minimizing the time that sales representatives need to spend on each phase. This allows
a business to use fewer sales representatives to manage their clients.
At the core of SFA is a contact management system for tracking and recording every stage in the
sales process for each prospective client, from initial contact to final disposition. Many SFA
applications also include insights into opportunities, territories, sales forecasts and workflow
automation.
a. More sales lead with expressed interest or need

b. Increase in referrals
c. Reduce cost per lead acquired
d. Key social influencers identified and engaged (invited to write a blog, for
instance, or otherwise participate in a company’s online community)
e. Overall increase in online sales and/or online customers

f. High response rate to coupon or promotion offered on Facebook or other social

channel
g. Increased purchasing from social channel visitors vs. regular online visitors
1.6. Product development:

New ideas for future products or services generated via contests or “crowd sourcing,” in which
online groups brainstorm and then vote on best ideas Responses to online surveys to vote on
new product features or upgrades
1.7. Horizontal vs. Vertical:
Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM
solution, companies may use industry templates to overlay some generic best practices by
industry on top of the horizontal CRM solution. Horizontal CRM vendors may also rely on value
added reseller networks of systems integrators to build vertical solutions and sell them as 3rd
party add-ons or to come in and customize the solution to fit into a particular scenario.
Vertical CRM vendors focus on a particular industry. As a general rule of thumb in CRM, it is
ten times more costly to build a vertical solution from a horizontal software program than it is to
find a particular vertical solution that is already tailored to your business model and industry.

Customer Relationship Management (CRM) is to create a competitive advantage by being the

best at understanding, communicating, delivering, and developing existing customer
relationships, in addition to creating and keeping new customers. It has emerged as one of the
largest management buzzword. Popularized by the business press and marketed by the
aggressive CRM vendors as a panacea for all the ills facing the firms and managers, it means
different things to different people. CRM, for some, means one to one marketing while for others
a call centre. Some call database marketing as CRM. There are many others who refer to
technology solutions as CRM. If so, what is CRM?
Merchants and traders have been practicing customer relationship for centuries. Their business
was built on trust. They could customize the products and all aspects of delivery and payment to
suit the requirements of their customers. They paid personal attention to their customers, knew
details regarding their customer’s tastes and preferences, and had a personal rapport with most of
them. In many cases, the interaction transcended the commercial transaction and involved social
interactions. Even today, this kind of a relationship exists between customers and retailers,
craftsmen, artisans – essentially in markets that are traditional, small and classified as pre-
industries markets. These relationship oriented practices have changed due to industrial
revolution.. Businesses adopted mass production, mass communication and mass distribution to
achieve economies of scale. Manufactures started focusing on manufacturing and efficient
operations to cut costs. Intermediaries like distributors, wholesalers and retailers took on the
responsibilities of warehousing, transportation, distribution and sale to final customers. This
resulted in greater efficiencies and lower costs to manufacturers but brought in many layers
between them and the customers. The resulting gap reduced direct contacts and had a negative
impact on their relationships.
The post-industrial era saw the re-emergence of relationship practices. Marketing academicians.
i. Rapid advances in technology,

ii. Intensive competition in most markets,
iii. Growing importance of the service sector
iv. Adoption of total quality management programs

Figure 1.1. The Evolution of Relationship Orientation
1.8. Technological Advancement:

More information, communication and production technologies have helped marketers come
closer to their customers. Firms operating in diverse sectors ranging from packaged goods to
services started using these technologies to know their customers, learn more about them, and
then build stronger bonds with them through frequent interactions. Marketers could gain
knowledge about customers, which helped them respond to their needs through manufacturing,
delivery, and customer service. Technology also enabled ordering and product-use related
services. Though the emergence of CRM in recent times coincided with the information age, one
must remember that technology is just an enabler. Technology enabled marketers overcome
several long felt shortcomings of mass marketing. Some of these included:
1) Inefficiencies of mass marketing: 1980s and early 1990s witnessed some of the most
radical business transformations that resulted in cost reductions in almost all functional
departments except marketing. Manufacturing and related operations costs were reduced
through business process reengineering, human resource costs were reduced through

outsourcing, restructuring and layoffs, financial costs were reduced through financial
reengineering but marketing costs kept increasing due to increased competition and
product parity in virtually every industry.
2) Lack of fast, effective and interactive models of customer contact, feedback and
information.
3) Lack of consolidated information about customer interactions, purchase behavior and
future potential.
1.9. Intensive Competition:

In competitive markets, especially the ones that were maturing and witnessing slow or no
growth, marketers found it more profitable to focus on their existing customers. Studies have
shown that it costs up to 10-12 times more to attract a new customer than to retain an existing
customer. Marketers have now started focusing on the lifetime value of customers. They are
moving away from just trying to sell their products to understanding, customers needs and wants
and then satisfying their needs. This has led to a relationship orientation which creates
opportunities to cross sell products and services over the lifetime of the customer.
1.10.Growing Importance of the Service Sector :

The service sector contributes to over two-third of the GDP of most advanced economies. In
India, the services sector contributes to over 50 per cent of the economy. One of the
characteristics of the service industries is the direct interaction between the marketer and the
buyer. In services, the provider is usually involved in the production as well as delivery directly.
For example, professional service providers like a doctor or consultant are directly involved in
production as well as delivery of their services. Similarly, the customers are directly involved in
production in the purchase and consumption of these services. These direct contacts create
opportunities for better understanding, a better appreciation of needs as well as constraints and
emotional bonding all of which facilitate relationship building. Therefore it should come as no
surprise when you see the service firms pioneering many of the customer relationship initiatives.
Firms operating in the financial services, hospitality business, telecom, and airlines are the early
adopters and extensive users of CRM practices.

1.11.Schools of Thought on CRM:

The relationship marketing is supported by the growing research interest in different facets of
this concept. Researchers in different countries observed this shift in marketer‘s orientation
towards customer relationship and started exploring the phenomenon. The initial approaches to
CRM can be broadly classified as:
1. The Anglo-Australia Approach,

2. The Nordic Approach, and
3. The North American Approach
The Anglo-Australian approach integrated the contemporary theories of quality management

services marketing and customer relationship economics to explain the emergence of relationship
marketing .The Nordic approach views relationship marketing as the confluence of interactive
network theory, services marketing and customer relationship economics. The interactive
network theory of industrial marketing views marketing as an interactive process in a context
where relationship building is an area of primary concern for marketers.
Figure 1.2 Anglo-Australian Approach of Relationship Marketing

Figure 1.3 Nordic Approaches to Relationship Marketing
In contrast, the initial focus of the North American scholars was on the relationship between the
buyer and seller operating within the context of the organizational environment which facilitated
the buyer seller relationship.
Figure 1.4 North American Approaches to Relationship Marketing

One of the broader approaches to CRM emerged from the research conducted by academics at
the Centre for Relationship Marketing and Service Management at the Cranfield University,
U.K. The broadened view of relationship marketing addresses a total of six key market domains,
not just the traditional customer market. It also advocated for a transition for marketing from a
limited functional role to a cross functional role and a shift towards marketing activities for
customer retention in addition to the conventional customer retention in addition to the
conventional customer acquisition.
The six markets are as follows
1. Customer markets – existing and prospective customers as well as intermediaries.
2. Referral markets – existing customers who recommend to other prospects, and referral sources
or multipliers‘ such as doctors who refer patients to a hospital or a consultant who recommends
a specific IT solution,
3. Influence markets – government, consumer groups, business press and financial analysts.
4. Recruitment markets – for attracting the right employees to the organization
5. Supplier markets – suppliers of raw materials, components, services, etc., and
6. Internal markets - The organization including internal departments and staff.

Figure 1.5 The Six Markets Framework
1.12 .Defining CRM:

The preceding discussions highlight the range of perspectives adopted by researchers in
understanding and explaining relationships. Similarly in marketing literature, the terms customer
relationship management and relationship marketing have been used interchangeable to reflect a
variety of themes and perspectives.
Some of these themes offer narrow functional marketing perspectives while others offer a
perspective that is broad and somewhat paradigmatic in approach and orientation. A narrow
perspective of customer relationship management is database marketing emphasizing the
promotional aspects of marketing linked to database efforts, Another view point is to consider
CRM only as customer retention in which a variety of after marketing tactics are used for
customer bonding or staying in touch after the sale is done. A more popular approach with
recent application of information technology is to focus on individual or one to one relationship
with customer that integrates database knowledge with a long-term customer retention and
growth strategy.
Jackson applied the individual account concept in industrial market to suggest markets CRM to
mean, marketing oriented toward strong, lasting relationship with individual accounts

McKenna offered a more strategic view by putting the customer first and shifting the role of
marketing from manipulating the customer (telling & selling) to genuine customer involvement
(communicating & sharing the knowledge).
Berry, in a broader term stressed that attracting new customers should be viewed only as
intermediate step in the marketing process. Developing closer relationships with this customers
and turning them into loyal is an equally important aspect of marketing. Thus, he defined
relationship marketing as attracting, maintaining, and, enhancing customer relationships.
By focusing on the value of interaction in marketing and its consequent impact on a customer
relationships, a broader perspective espouses that customer relationship should be the dominant
paradigm of marketing. As Gronroos stated: Marketing is to establish, maintain and enhance
relationship with customers and other partners, at a profit, so that the objectives of the parties
involved are met. This is achieved by a mutual exchange and fulfillment of promises.
The implication of Gronroos definition is that customer relationships are should be devoted to
building and enhancing such relationship. Similarly, Morgan and Hunt suggested that
relationship marketing refers to all marketing activities directed towards establishing, developing
and maintaining successful relationships. Similarly, Morgan and Hunt suggested that relationship
marketing refers to all marketing activities directed towards establishing, developing and
maintaining successful relationships.

Figure 1.6 Shift in focus.

1.13. Benefits of CRM:

Customers are Profitable over a period of time and Studies by the US-based Bain and Company
have shown that a customer becomes more profitable with time because the initial acquisition
cost exceeds gross margin while the retention costs are much lower. When an organization
retains the customer, it gets a larger share of the customers wallet at a higher profit-one percent
increase in sale to existing customer increase profits by 17 per cent while the same amount of
sale to new customer increased profit by only 3 per cent. This huge different is explained by the
fact that for most companies the cost of acquiring the customer is very high. It costs six to eight
times more to sell to a new customer than to sell to an existing one. The same study also
highlighted that a company can boost its profit up 85 per cent by increasing its annual customer
retention by only 5 per cent.
Similarly, studies have shown that the probability of selling a product to a prospect is 15 per cent
while it is 50 per cent to a existing customer. Thus, the time, the effort and the costs of selling
are much lower for an existing customer.
1.14. Customer probability is skewed:

An analysis of the revenue and profit contribution of customer base of banks in the US, Europe
and Australia showed the following
The top 20 per cent of the customers contribute to 150 per cent of the profits while the bottom 20
per cent drain 50 per cent of the profits and the rest 60 per cent just break even.
Experiences of Indian organizations are on similar lines. In a large public sector Banks, the top
23 per cent of the customers contribute to 77 per cent of the revenues. Similarly, the top 27 per
cent customers of a leading cellular phone service provider contribute to 75 per cent of the
revenues.
The implication of such a skew in customer profitability and revenue contribution are startling
for organizations, which use to conventionally treat all customers are equal‘. Competitors have to
just lure these top customers and the organization would face serious problems. It also highlights
the fact that one has to adopt different strategies for different customer groups:

1. Programmes have to be developed to retain and build stronger bonds with the top gold
standard ‘customers so that they do not get poached‘.
2. Activity-Based Costing analysis has to be done with the middle group of potentials ‘so
that the cost of serving this customer is reduced. In addition, cross-selling and up selling
should be done to increase the profitability of these customers.
3. An analysis of the bottom growth has to be done to identify those customers who can be
shifted to the potential ‘group. For the remaining, the cost of service has to reduce by
encouraging them to use lower cost channels. In extreme cases, some of these customers
will be encouraged to defect to competitors. Outsourcing of loss making customers to
specialized low overhead agencies is an emerging trend.
1.15. Marketing Benefits of CRM:

CRM will gradually reduce organization‘s dependence on periodic surveys to gather data.
Collection of data related to buying and consumption behavior will be an ongoing process. In
many cases, the transaction data is automatically collected sometimes real time as in the e-
commerce transaction. This rich repository of customer information and knowledge updated
through regular interactions and actual customer transactions and purchase behavior will help
marketers to develop and market customer centric products successfully.
Customized promotions-based customer preferences and purchase patterns will substantially

reduce the wasteful expenditure of mass communication and even direct mailing. As a
customized promotion are more focused and are based on a deeper insight of existing customers,
they have a greater chance of conversion to sales.

Chapter -2
CRM software’s

2.CRM software’s:
CRM is a business philosophy which provides a vision for the way your company wants to deal
with your customers. To deliver that vision, you need a CRM strategy which gives shape to your
sales, marketing, customer service and data analysis activities. For most companies, the aim of a
CRM strategy is to maximize profitable relationships with customers by increasing the value of
the relationship for both the vendor and the customer.
Software solutions and new technologies may facilitate the new ways of working required by a
CRM strategy but simply implementing a CRM product will not, in itself, deliver increased
customer satisfaction. Instead, companies need to introduce new cross-departmental processes
which allow them to complete the four steps in the CRM cycle: plan, interact, process, leverage –
and then plan anew.
Many CRM applications tackle only one or two elements of the CRM cycle. As a result, a high
proportion of CRM projects - which are based around implementing a particular package or suite
of applications - fail to increase customer satisfaction, improve customer loyalty or deliver a
return on investment for the supplier in the form of increased revenues or profits.
Any CRM initiative should therefore start with a vision and strategy which lays out the com-
pany’s aims and objectives. You must then adjust your processes and organizational structures so
that they will allow you to exe cute that strategy effectively. These processes need to be
underpinned by a CRM architecture which connects interaction channels with CRM applications
and customer data repositories. Furthermore, your investment in CRM must encompass tools
from all three solution domains - collaborative, operational and analytical CRM - if it is to
support all four stages of the CRM lifecycle.
Our experience over many projects has allowed us to develop a CRM methodology and skill set
which is enabling our diverse client base to succeed with CRM. We can help you with short-term
execution of specific projects and provide longer-term support as you devise and then roll out
your complete CRM program me. Above all, we can help you really leverage your customer
information so that you can deliver increased value to customers and continue to reap the
benefits of your CRM strategy over the long term.
2.1.What is Customer Relationship Management?

Customer Relationship Management (CRM) is a business philosophy which provides a vision for
the way your company wants to deal with your customers. To deliver that vision, you need a
CRM strategy which gives shape to your sales, marketing, customer service and data analysis
activities. For most companies, the aim of a CRM strategy is to maximize profitable relationships
with customers by increasing the value of the relationship for both the vendor and the customer.
From the vendor’s perspective, it is clear that not all customers are created equal.
We need to understand the Customer value
Margin No of customers Revenue
70% 45%
15
%
20% 35%
25%
10%
60% 20%
Figure 2.1.Diagram representing customer value

An example for retail companies shows that just 15 per cent of customers will account for 45 per
cent of revenues and generate 70 per cent of a company’s profits. A CRM-based approach to
business allows companies to identify these high value customers and then service them in a way
which keeps them loyal. From the customer’s perspective, the value of the relationship is a
function not only of the classic marketing "four Ps" - price, product, place and promotion - but
also of the quality of customers’ interactions with a supplier over time. Customers are looking
for suppliers who understand their needs and who can respond to those needs with relevant
offers, using the communication channels the customer prefers.
This shift in emphasis is the result of some far-reaching structural changes which are taking
place in many marketplaces and sectors. Firstly, markets have become more transparent as
customers have found it easier to gain access to information about alternative suppliers using
new technologies such as the World Wide Web. Because customers are now able to compare
suppliers and their offerings more easily and efficiently, the "cost" to customers of switching
between suppliers has fallen - and customer churn has increased dramatically .
Moreover, customers’ expectations are increasing. Greater transparency means people rapidly
find out about all the good ideas of other suppliers - including the ways in which technology can
be used to facilitate interactions between companies and their customers. People expect suppliers
to be able to deliver more quickly and in ways that are convenient for the customer rather than
the supplier. As a result, customers are looking for services which are - to a greater or lesser
extent, depending on the sector - personalized and "aware" of previous interactions between
supplier and customer.
Meeting these customer demands and managing the customer relationship is becoming ever
more complex as the number of channels through which interactions can take place has grown to
encompass the telephone, the World Wide Web, e-mail and interactive digital TV as well as
traditional high street outlets and direct mail. Companies will only succeed if they adopt a
management approach that puts the customer at the core of the company’s processes and
practices. Moreover, companies need to view CRM as a cyclical process which doesn’t treat
customer contacts as one-off events but as interactions in a long-term relationship which
develops and deepens over time.

Figure 2.2.Diagram representing customer value full life cycle
Analyzing the data helps in spotting the trends in customer behavior, identifying new segments
Predicting the customers likely to react particularly to campaigns and offerings, determining
where likely to see most of return on investment.
Software solutions and new technologies may facilitate the new ways of working required by a
CRM strategy but simply implementing a CRM product will not, in itself, deliver increased
customer satisfaction. Instead, companies need to introduce new cross-departmental processes
which allow them to complete the four steps in the CRM cycle.
The first stage is to plan your marketing strategy, determining the customer segments you will
target and the campaigns you will aim at those segments. Those campaigns are increasingly
likely to incorporate some kind of loyalty program me to allow you to develop long-term
relationships with customers.

The second stage is to interact with customers and execute the marketing plan so that both the
company and its customers get the most out of their interactions. Communication with customers
can take place through many different channels and the organization needs to have processes and
systems in place to handle interactions through any of these channels, whether singly or in
combination. The next step is to process the information captured during the interaction and
ensure that customer requirements are fulfilled. Too often, so-called CRM solutions are divorced
from a company’s back-office processes and systems that ensure fulfillment of orders or
services. CRM applications need to be tightly integrated with operational applications such as
enterprise resource planning (ERP) systems so that the service promised during the customer
interaction is fulfilled efficiently.
Finally, you should leverage the information you have collected during the previous three stages
to learn about your customers and use that knowledge to update your plans in order to take your
relationship with the customer to a higher, more intimate level.
Analyzing the data will help you: spot trends in customer behavior; identify new segments;
predict how customers are likely to react to particular campaigns and offerings; and determine
where you are most likely to see a return on investment. You can then feed this knowledge into
your plan for the next period of activity. We believe that it is only by closing the loop by
leveraging your customer data that you will truly be able to deliver value for customers and the
company.

2.3.The CRM market:

Many CRM applications tackle only one or two elements of the CRM cycle. As a result, a high
proportion of CRM projects which are based around implementing a particular package or suite
of applications - fail to increase customer satisfaction, improve customer loyalty or deliver a
return on investment for the supplier in the form of increased revenues or profits. Current failure
rates are around 55% and some expect these to rise to around 70%. With Gartner estimating that
close to US$ 7 billion will have been spent on CRM software and services in EMEA in 2001 -
while forecasting that the market may grow to up to US$ 22 billion annually by 2005 -
increasing the success rate of CRM endeavors represents an enormous opportunity to add value.
The skills and experience to help companies tackle the full CRM cycle, close the loop and
deliver real value for customers and a strong return on investment for suppliers.
Figur2.3.CRM cycle process and IT components

2.4. Components of a CRM solution:
Any CRM initiative should start with a vision and strategy which lays out the company’s aims
and objectives. You must then adjust your processes and organizational structures so that they
will allow you to execute that strategy effectively. These processes will need to be underpinned
by a CRM architecture which connects interaction channels with CRM applications and
customer data repositories. The CRM applications must be tightly integrated with each other and
with existing back-office systems such as enterprise resource planning solutions.
The Gartner Group has identified some dozen different software components of a CRM solution.
At Atos Origin, we divide them into three main areas, each of which, following a detailed
planning phase, supports the further stages in the CRM Cycle:
Collaborative CRM solutions are concerned with all the elements of the interact stage of the
CRM Cycle. These interactions can take place through multiple channels and media, ranging
from the website, e-mail and inbound and outbound telephone calls through online chat, co-
browsing and voice over IP call- backs to cash registers, kiosks and face-to- face interactions on
the high street or in other locations such as customers’ homes.
Many organizations will look to implement a customer interaction centre - which takes the
principles of the call centre and extends them to new media types - and to integrate it with
enhanced systems used in offline channels. Applications which may be required include
computer-telephony integration, interactive voice response, and agent routing and e-mail
response management. In addition, workflow management and integration to sales automation
solutions will be essential for effective execution.
2.4a.Operational CRM solutions relate to the process stage of the CRM Cycle:
The required functionality, such as order processing, can be delivered by existing enterprise
resource planning (ERP) solutions and other back-office applications. The key will be to
integrate these systems with marketing, customer service and support suites from vendors such
as Siebel. Workflow automation and business rules engines must then be applied to create end-

to-end processes. Key to the "process" stage is the storage of (updated) customer information in
an efficient way in order to support data warehousing and data mining.
2.4b.Analytical CRM solutions support the leverage stage of the CRM Cycle:
They encompass a range of technologies, including data warehousing, data mining, statistical
analysis and predictive modeling and multidimensional reporting. Without customer analytics,
companies will be unable to effectively leverage their operational CRM efforts and make the
most of their investment in CRM. Furthermore, as market conditions get tougher as in the current
economic downturn - companies will want to focus even more heavily on this area in order to
rationalize their data structures and to use insights gained from analyzing customer data to
optimize the return from their current investments in CRM processes and technology.

Chapter -3
Industry Profile

3. Industry Profile:
Home appliances are electrical/mechanical machines which accomplish some household
functions, such as cooking or cleaning. Home appliances can be classified into:
a. Major appliances, or white goods
b. Small appliances,
c. Consumer electronics, or brown goods
This division is also noticeable in the maintenance and repair of these kinds of products. Brown
goods usually require high technical knowledge and skills (which get more complex with time,
such as going from a soldering iron to a hot-air soldering station), while white goods may need
more practical skills and "brute force" to manipulate the devices and heavy tools required to
repair them.
Definition
Given a broad usage, the domestic application attached to "home appliance" is tied to the
definition of appliance as "an instrument or device designed for a particular use or function".
More specifically, Collins dictionary defines "home appliance" as: "devices or machines, usually
electrical, that are in your home and which you use to do jobs such as cleaning or cooking." The
broad usage, afforded to the definition allows for nearly any device intended for domestic use to
be a home appliance, including consumer electronics as well as stoves, refrigerators, toasters and
air conditioners to light bulbs and water well pumps.
History
While many appliances have existed for centuries, the self-contained electric or gas powered
appliances are a uniquely American innovation that emerged in the twentieth century. The
development of these appliances is tied the disappearance of fulltime domestic servants and the
desire to reduce the time consuming activities in pursuit of more recreational time. In the early
1900s, electric and gas appliances included washing machines, water heaters, refrigerators and
sewing machines. The invention of Earl Richardson's small electric clothes iron in 1903 gave a
small initial boost to the home appliance industry. In the Post–World War II economic
expansion, the domestic use of dishwashers, and clothes dryers were part of a shift for
convenience. Increasing discretionary income was reflected by a rise in miscellaneous home
appliances.

In America during the 1980s, the industry shipped $1.5 billion worth of goods each year and
employed over 14,000 workers, with revenues doubling between 1982 and 1990 to $3.3 billion.
Throughout this period companies merged and acquired one another to reduce research and
production costs and eliminate competitors, resulting in anti-trust legislation.
The United States Department of Energy reviews compliance with the National Appliance
Energy Conservation Act of 1987, which required manufacturers to reduce the energy
consumption of the appliances by 25% every five years. In the 1990s, the appliance industry was
very consolidated, with over 90% of the products being sold by just five companies. For
example, in 1991, dishwasher manufacturing market share was split between General Electric
with 40% market share, Whirlpool with 31% market share, Electrolux with 20% market share,
Maytag with 7% market share and Thermador with just 2% of market share.
Major appliances
Major appliances, also known as white goods, comprise major household appliances and may
include: air conditioners, dishwashers, clothes dryers, drying cabinets, freezers, refrigerators,
kitchen stoves, water heaters, washing machines, compactors, and microwave and induction
cookers. White goods were typically painted or enameled white, and many of them still are.
Small appliances
Small appliances are typically small household electrical machines, easily carried and installed.
Some are classified with white goods, and relate to heating and cooling such as:fans and window
mounted air conditioners, and heaters such as space heaters, ceramic heaters, gas heaters,
kerosene heaters, and fan heaters. Yet another category is used in the kitchen, including: juicers,
electric mixers, meat grinders, coffee grinders, deep fryers, herb grinders, food processors,
electric kettles, waffle irons, coffee makers, blendersand dough blenders, rice cookers,toasters
and exhaust hoods.
Entertainment and information appliances such as: home electronics, TV setsCD, VCRs and
DVD players camcorders, still cameras, clocks, alarm clocks, video game consoles, HiFi and
home cinema, telephones and answering machines are classified as "brown goods". Some such
appliances were traditionally finished with genuine or imitation wood. This has become rare but

the name has stuck, even for goods that are unlikely ever to have had a wooden case (e.g.
camcorders).
Networking of home appliances

There is a trend of networking home appliances together, and combining their controls and key
functions. For instance, energy distribution could be managed more evenly so that when a
washing machine is on, an oven can go into a delayed start mode, or vice versa. Or, a washing
machine and clothes dryer could share information about load characteristics (gentle/normal,
light/full), and synchronize their finish times so the wet laundry does not have to wait before
being put in the dryer.
Additionally, some manufacturers of home appliances are quickly beginning to place hardware
that enables Internet connectivity in home appliances to allow for remote control, automation,
communication with other home appliances, and more functionality. Internet-connected home
appliances were especially prevalent during recent Consumer Electronic Show events.
Recycling
Appliance recycling consists of dismantling waste home appliances and scrapping their parts for
reuse. The main types of appliances that are recycled are T.V.s, refrigerators, air conditioners,
washing machines, and computers. It involves disassembly, removal of hazardous components
and destruction of the equipment to recover materials, generally by shredding, sorting and
grading.

3.1. Company profile:

The Journey started from a 300sq.ft store to a 1000000+ sq.ft which is a multi-city showroom
brand, more than 4 decades of quality delivery and unmatched service - GIRIAS has come a long
way and is undoubtedly South Indias' No.1 Consumer Durables Retailer with 65 Mega Stores in
South India. Girias have branches in the major cities of South India such as Bangalore, Belagavi,
Chennai, Coimbatore, Davangere, Dharwad, Erode, Hubli, Hosur, Hassan, Mysore, Mandya,
Madurai, Namakkal, Pollachi, Salem, Shivmoga, Tirupur, Tiruvallur, Tumkur, and Vellore . The
Respective Branches is located in the areas such as Adyar, Ambattur, Anna Nagar East, Avadi,
Banashankari, Bannerghatta Road, Basavangudi, Brigade Road, Coles Park, Gandhinagar,
Gandhipuram, Gokula, Hosur Road, HRBR Layout, Indiranagar, JP Nagar, Jaya Nagar, Jalahalli
Cross, Kathriguppe, Keelkatalai, Koramangala, Kuvempu Nagar, Malleshwaram, Mangalore-
Kidari Road, Mangalore KSR Road, Marathalli, Mogappair West, Nagarbhavi, Neelamangala,
Perambur, RA Puram, Rajaji Nagar, Raichur, Ramanagara, RT Nagar, Sadashivanagar, T-Nagar,
Tambaram West, Velachery, VijayaNagar, Virugamnakkam, Washermenpet, Yelahanka and the
branches growing day by day, GIRIAS believes in the philosophy of providing the latest
products to customers at the best market price. The very fact that thousands of customers come
back to GIRIAS for their consumer durable needs proves the quality of service and delivery
promise that we give to our Customers, GIRIAS - "The One Stop Shop for Consumer Durable
Needs".

CUSTOMER SERVICE
Shipping & Delivery
Shipping and Delivery is the charge for Internet order processing, item selection, packaging,
transport and handling. Delivery times are not guaranteed, but are our best approximation and
will vary with specific requests. Shipments and deliveries only occur on weekdays. Shipping and
Delivery is subject to change and will be determined at the time of order.
Estimated delivery time assumes orders are placed before 12:00 noon (IST). Orders placed late
on Friday or on Saturday will not be processed until Monday. Currently we support standard
delivery which is free of charge. Orders arrive in 7 to 15 business days when ordered before
12:00 noon (IST).
Returns & Replacements

We want you to be completely happy with your order. If for any reason you are not satisfied, you
will need to call the specific Brand call centre or Toll Free Number and request for a
replacement. There are strictly no returns of goods undertaken by GIRIAS INVESTMENT PVT
LTD.
Gifts
When returning a gift, a GIRIAS Gift Card will be issued to the gift recipient for the amount of
the returned merchandise. The card can be used for purchases from www.giriasindia.com. The
courier charges for the returned gift have to be borne by the customer and GIRIAS
INVESTMENT PVT LTD. does not hold any responsibility in case of damage of goods in
transit when returned. In case the gift is damaged in transit onward, send the image of the
packaging and the damaged product before reverse shipping the same and send an e-mail to
sales@giriasindia.com with order id in the subject of the e-mail. On confirmation, you can
reverse ship the product for a voucher. In case of damage of gift during return, GIRIAS
INVESTMENT PVT LTD. will not be liable to issue a fresh gift or voucher to the customer.



COMPANY NAME GIRIAS INVESTMENTS PRIVATE

LIMITED
Managing
Managing Director Pannalal Giria
BOARD OF DIRECTORS 1. Mr.KanhaiyalalGiria
2. Hansraj Giria
3. Naveen Giria
4. Praveen Giria
5. Manish GIria
6. Rishab Giria
BANKERS HDFC Bank
1971 in Bangalore
Year of Establishment
ACTIVITY Traders of Electronic Home Appliance
COMPANY SUB Indian Non-Government Company
CATEGORY
CLASS OF COMPANY Private Company
EMAIL ID www.giriasindia.com
HEAD OFFICE No.47 3rd floor 3rd main 15th cros,
Malleshwaram, Bangalore
PHONE NUMBER. (080) 25202880
CITY Dharwad
STATE KARNATAKA
COUNTRY INDIA
Revenue 850 corers per annum

3.2. Products offered:
SI.NO Name of Product

1 Panels
2 Washing machine
3 Refrigerator
4 AC
5 Micro ovens
6 Small appliances
7 Kitchen Appliances
Table.3.1.List of products

3.3. Company Objectives:

The main objective of the company is to achieve an edge over the competitors to deliver quality
and value to consumers especially in the field of electronics products.
Sub Objectives are as follows:

I. To contribute to area development & give recognition to north Karnataka.
II. To modernize the organizational culture through the introduction of new ideas
III. To provide product & service as required by market and customers.
IV. To provide quality products as per the order placed by the customer & installation of the
products within stipulated time.
V. To become a key player in economy to faster trade. Creating employment opportunity to
increasing sales.
VISION:
To be the best and the first option in the market to cater to al customer needs. It is our Endeavour
to offer the best products from the leading brands at the best possible prices along with the
responsibility to take care of the customers after sales needs. This can be possible through the
excellent relations we share with all our principals and suppliers who also trust us to be the best
bet to showcase their products in the market.
The faith that the customers have in brand GIRIAS, is our biggest strength and it is our long term
vision to always honor that faith. We would only grow based on our customer relations and it is
our constant endeavor to up the bar every time the customer expects more from us. This would
keep us on our toes and also continuously adapt to the customer needs and face the challenges of
a dynamic market and high customer expectations.

The future:
The future looks promising and we at GIRIAS will strive to achieve and conquer even higher
milestones. It will be our constant endeavor to reach even close to the customer base by opening
more and more stores. This will be coupled with our promise of delivering the best quality
products from the leading brands and at the most competitive prices and the most convenient
after sales support system.
We are sure that with our constant hunger to strive for the better will reaffirm the faith that our
customers have in the brand GIRIAS and we along with our customers can look forward to a
great future.

3.4. Organizational Structure:
Figur3.1.Organization Chart of Girias

3.5. Product Distribution Channel:
Figur3.2.Distribution channel of Girias
The products requirement is sent to head office Bangalore where it will be evaluated and sent to
manufacturer the quotations with price.
Once the Manufacturer sends the required products to head office Bangalore from there it will be
distributed to the particular district branch retail outlets.

3.6. Departmental Studies:
A sale is an act of selling of product or services in return for money or other compensation. It is
an act of commercial activity.
The seller the provider of the goods or services completes a sale in response to an appropriation
or to a request.
Selling Steps followed by Girias:
Figur3.3.Flow diagram for selling process of Girias

3.7. Store Department:

A department store is retail established which satisfies a wide range of electronic products, and
at the same time offering the consumer a choice of multiple merchandise lines, at various price
points in all products categories.
In GIRIAS the product storage is done on the basis of following sales cycle.
1. Demand of product
2. Festive seasons
3. Summer season
4. Technology changes
5. Supply of goods at discounts
Personnel Department:
Personnel department is the most important department of any organization it is concerned with
personnel management that is managing or guiding man power diligently for the organization
benefits and development.
It is the duty of the personnel department to record daily attendance of workers. It maintains
thee quality records so as to demonstrate the achievements of specified requirement at various
stages and to provide profit of effectiveness in implementation of quality.
The total numbers of the employees employed in GIRIAS at present are 35 now in Dharwad
Branch.

3.8. Purchase Department:
Figur3.4.Flow diagram for purchase Department
Responsibilities of the Purchase Department

All the electronic products come directly from manufacturers to the Dharwad store and the
purchase order copy is sent to Bangalore head office.
I. To receive “the request for purchase” from the factory.
II. To send enquires, get and compare quotations and select supplies in consultation with
operating manager.
III. To place purchase order for the electronic goods as per the demand
IV. To arrange for the rejected goods and get replacement etc..
V. To make payments and arrange for onward dispatch of cheques / demand draft to the
suppliers.

3.9. Customer Orientation:

“The company values its customer and endeavors to maintain their confidence by providing
products of high quality, at reasonable price.”
The company believes the concept of the “consumer” that is, emphasizing the Customer needs
in the production. This policy has helped the group to get an idea of the Product value as
perceived by the customer & devise positioning strategies based on the Expectation of consumer.
GIRIAS Products are both standardized & customized. They have established an ongoing
relationship with their customers. They have taken care of all the four elements of customer
satisfaction namely:
1. Intensity : They care for the value of their products attribute

2. Congruence: They care about difference between expected and actual level of
satisfaction.
3. Ambiguity: They care how clearly the customer can relate his satisfaction to a product.
4. Periodicity: Measure of frequency that a customer experiences.

3.10. Dealer Customer of Girias:
SI.NO NAME OF CUSTOMERS ADDRESS

1 Navnidhi electronics Tikare Road , Dharwad
2 Best electronics Dajibanpeth Road , Hubli
3 Kesar digitals Station Road ,Hubli
4 Karnataka radio house Near Head Post Office ,
Gulbarga
5 Sujay home needs Bijapur Road Muddebihal
6 Zuber enterprises Gopal Chambers,
Jamkhandi
7 V.K virupakshi& sons Khade bazaar , Belgaum

8 Guddogi electronics S. S Road Bijapur
9 Ganesh trade links P.B Road , Dharwad
10 S.K Furniture M. G .Road , Taalikoti
11 Kapil enterprise Tikare Road , Dharwad
12 Sharanjyoti Ambedkar circle , Hubli
13 Bhagyadeep appliance Belgaum
Table.3.2.List of Dealers

3.11. Competitors of GIRIAS In Dharwad are:
SI.NO Name
1 BIG BAZAAR
2 HARSHA Home Appliances
3 Reliance Digital
4 Reliance market
5 JTK Arihant Appliance
6 Digital express
Table.3.3.List of competitors in Dharwad

Chapter -4
CRM application using MS-
Excel

4. Development of CRM software for Girias retail outlet Dharwad:

I. The retail outlet has very good customer base and the concept of CRM plays an
important role for the retail outlet.
II. The retail outlet has good number of walk-ins per day.
Process involved
1. The process started by collecting customer data of around 100 customers with contact
number.
2. Then by using Ms-excel developing a macro formula for the collected data.
3. Applying the formula and execution for showing reminder message of the customer before
90 days with the “Insurance expiring soon”.
4. Then for the “product warranty expired” it will show reminder or before 30 days he or she can
inform the customer for renewal for extension .
5. The customer support executive can call or send an SMS for the customer.

Flow diagram
Figure4.1. flow diagram for the Ms-excel Macro development

4.1. Girias data base:
SI.NO Parameters Girias

1 Area in sqft 20000
2 Revenue in corers per annum 12
3 No of employees 50
4 Location K.C.Park
5 Transaction counts (Mon-Friday) 10-12
6 Traffic counts (Mon-Friday) 40
7 Transaction counts (Sat-Sun) 20-25
8 Traffic counts (Sat-Sun) 80
9 Sales per month in 2019 75 lakhs
Table 4.1.Girias retail parameters

4.2. Customer Data Base:

Date of Contact
SI.NO NAME Company Product purchase number
1 Rajshekhar N Samsung LED 2/2/2019 9019868640
2 Sudhir R J Samsung LED 2/2/2019 9980735638
3 UdayKumar B D Samsung LED 4/2/2019 9481681767
Rajshekhar R
4 Kulkarni Samsung LED 5/2/2019 9611563720
5 Ganesh N Samsung LED 5/2/2019 6364302967
6 MS Ghanti Samsung LED 7/2/2019 9869563462
7 Mohankumar K Samsung LED 8/2/2019 9663025505
8 Mazaharkhan Kittur Samsung LED 9/2/2019 9986801310
9 Amruta S T Samsung LED 9/2/2019 7760527760
10 Annapurna B Samsung LED 10/2/2019 9611263609
11 Abduljabbar Nadaf Samsung LED 10/2/2019 9538761204
12 Manjunath S Samsung LED 10/2/2019 9916558201
13 Vinit Patil Samsung LED 12/2/2019 9867328899
14 Laxmi P Angadi Samsung LED 12/2/2019 9740828209
15 Nirmala Bagewadi Samsung LED 14/2/2019 9538932402
16 Abbas Belgawakar Samsung LED 14/2/2019 9972948204
17 deeepak Alur Samsung LED 15/2/2019 9480627373
18 Prasad S Samsung LED 15/2/2019 7899866967
19 Vijay Mantesh Samsung LED 17/2/2019 9036264328
20 A A Nayakwadi Samsung LED 17/2/2019 9620059331
21 L K Patil IFB washingmachine 1/1/2019 9448993500
22 F Y Marekar IFB washingmachine 3/1/2019 8970450797
23 Jayshreea Iyer IFB washingmachine 3/1/2019 9844585637
24 Janaki K IFB washingmachine 9/1/2019 9380031051
25 Vijaylaxmi B K IFB washingmachine 10/1/2019 8123849634
26 MAMAta a Shetty IFB washingmachine 11/1/2019 9480538116
27 Ravindra Ganachari IFB washingmachine 13/1/2019 9845373118
28 Isaqmoddin adoni IFB washingmachine 17/1/2019 99161582773
29 Rohit R IFB washingmachine 19/1/2019 9964005881
Imtiyaz Ahmmed B
30 Mulla IFB washingmachine 20/1/2019 9986902130
31 Mahadevappa D I IFB washingmachine 22/1/2019 9481929953
32 Rajaskekhar S IFB washingmachine 26/1/2019 9620369084
33 Mariyappa M IFB washingmachine 5/2/2019 9448966177
34 Tavanappa Astagi IFB washingmachine 6/2/2019 9448146131
35 Mahesh Pattar IFB washingmachine 6/2/2019 9902965009
36 Anil s Kammar IFB washingmachine 7/2/2019 7259828814
37 G B Shirur IFB washingmachine 9/2/2019 9591164776
38 Shankar Ling S IFB washingmachine 10/2/2019 9480794539
Hanumanthappa
39 Rao IFB washingmachine 17/2/2019 8884196700

40 Prabhu W IFB washingmachine 19/2/2019 9880529475

41 Anan G IFB washingmachine 19/2/2019 9632763668
42 Sharif B K IFB washingmachine 20/2/2019 8762463986
43 Vijayananad H IFB washingmachine 22/2/2019 9886418228
44 Sangamesh S G IFB washingmachine 22/2/2019 9945803225
45 P S Shiraguppi IFB washingmachine 23/2/2019 9845331261
46 Siddapa K IFB washingmachine 24/2/2019 9632548726
47 Vrinda Kulkarni IFB washingmachine 26/2/2019 9886630926
48 A B deshpande IFB washingmachine 26/2/2019 7676629522
49 satish s Patil IFB washingmachine 4/3/2019 8977070039
50 S R Manjula IFB washingmachine 5/3/2019 7411407973
51 A Ashokkumar IFB washingmachine 9/3/2019 7760755122
52 Laxman K IFB washingmachine 10/3/2019 9739232364
53 Harsha Y IFB washingmachine 15/3/2019 9945370870
54 Preeti Byadgi IFB washingmachine 25/3/2019 944839368
55 Susha J IFB washingmachine 31/3/2019 7795461331
56 Rashida Morab LG Refrigerator 1/2/2019 9731574226
57 Gangadhar B LG Refrigerator 1/2/2019 9844187020
58 Allhudin Golandaj LG Refrigerator 3/2/2019 9661976362
59 Yellapa D LG Refrigerator 3/2/2019 9343407483
60 Amrut U LG Refrigerator 3/2/2019 7259466990
61 Chidanand C LG Refrigerator 6/2/2019 7204350247
62 Mushtaq A D LG Refrigerator 7/2/2019 9473460765
Praveen
63 Belgaavankar LG Refrigerator 7/2/2019 8105230594
64 Vijet J K LG Refrigerator 9/2/2019 8050402813
65 Abdulrazaq Kunbi LG Refrigerator 9/2/2019 9952938278
66 J N Sopin LG Refrigerator 10/2/2019 9611021345
67 N N Matha LG Refrigerator 15/2/2019 9943162687
68 Manjunath H Nagavi LG Refrigerator 21/2/2019 8971990003
69 Bidikar LG Refrigerator 24/2/2019 8494915331
70 Umesh Thakur LG Refrigerator 28/2/2019 9448729600
71 Nabisab Itagatti Bosch Microoven 15/1/2019 9739314158
72 Riyaz A Bosch Microoven 18/1/2019 9620556688
73 Shivakumar M Bosch Microoven 19/1/2019 8951490278
74 Jayshreea R Bosch Microoven 22/1/2019 9740962304
75 S S Kallur Bosch Microoven 25/1/2019 9164077443
76 Pradeepkumar Bosch Microoven 29/1/2019 9481727599
77 R S Shivangoudar Bosch Microoven 5/2/2019 8105397028
78 Abhishekh Palankar Bosch Microoven 18/2/2019 9844426887
79 Rama S K Bosch Microoven 11/3/2019 9035046292
80 Anatkumar N B Bosch Microoven 23/3/2019 8123079415
81 Uma Achari Bosch Microoven 26/3/2019 9449949136
82 Shekappa Bosch Microoven 2/4/2019 9902487701
83 Dadapeer B Bosch Microoven 2/4/2019 9945781749
84 Deepa H Bosch Microoven 18/4/2019 9632011532

85 Ashok Y Bosch Microoven 24/4/2019 9449355567

86 Vadiraj Bosch Microoven 28/4/2019 9916145747
Baboo lal
87 Ammenbhavi Bosch Microoven 28/4/2019 934310094
88 Anand G Samsung LED 17/2/2019 9448404977
89 Sandesh W Samsung LED 17/2/2019 9168749201
90 M G Pattar Samsung LED 17/2/2019 9591665685
91 Suresh D Koppikar Samsung LED 17/2/2019 9008027800
92 Sampada G Samsung LED 18/2/2019 9035527636
93 Shreepathi Hegde Samsung LED 22/2/2019 9481124706
94 Ashish L Samsung LED 28/2/2019 9483936323
95 N S Associates Samsung LED 28/2/2019 9945000081
96 Ashok U B Samsung LED 2/3/2019 9448363119
97 Mahaboobali A Samsung LED 2/3/2019 9972010136
98 Sandya M Samsung LED 2/3/2019 9448746918
Geojit Financial
99 services Samsung LED 2/3/2019 9995801494
100 R Devaji Samsung LED 3/3/2019 9036853181
Table4.2.Customer Data base
The customer data being collected from the Girias Dharwad branch about the 100 customer’s
data base.
Steps Involved in writing excel code:

1. The first step is to enter the data in excel sheet.
2. Based on the Date of purchase and insurance covered by the each product.
3. The each customer has paid “1400, 1800, 2100” rupees extra for coverage of extended
warranty period on different products for a period of 1, 2,3 years extra.
4. Before the extended warranty period expire for its renewal customer needs to be send
SMS/ need to be Called regarding the before the expiry date of their extended warranty
period.
5. The customer needs to renewal of his or her extended warranty period.

Execution of Macro Results with customer data base:

Table 4.3.Result execution in Ms-excel

Following coding was done using

IF else program me
Formula used for execution:
1. = Date of purchase+
2. =Expiry data –today’s date
3. = =IF(I70=365,"Warranty Expired", IF(I70=720,"warranty expired",
IF(I70=1095,"Warranty Expired", IF(I70<30,"Warranty Expiring soon", "Still
under Warranty"))))
4. SMS /Called

Flow chart for if else macro in Ms-excel
Figure4.2.Flow chart for If else program me

Chapter -5
Findings, suggestions and
conclusion

Findings:
1. The Girias does not follow the CRM practices at their Branch
2. Lack of sales automation force.
3. Collection of contact details from customers but not updating them with the festival
offers.
4. Lack in providing the customers with “Birthday wishes”, “Wedding anniversary”.
5. Brand loyalty programmes are not practiced proper way.
6. The system is not computerized here with central data system.
7. The processing fees paid by the customers for any product seems to be burden for them
as a result of which most of the customer prefers to buy at other retail stores.
8. Services are not delivered with specified time and customers are shifting from them to
their competitors.

Suggestions:
1. Sales force automation can be improved for tracking each branch of Girias
a. Territory sales Promoter Hygiene & Discipline
b. Real time view of the tertiary sales
c. Real time stock information with alerts for critical stocks
d. Capturing customer demo and feedback
e. Visibility of in-store merchandising and shelf arrangement
2. Updating the customers thought SMS on different festivals regarding discount offers
3. Digitalization of their customer base.
4. Greetings for customer when they visit the store.
5. Greetings for customer during the “Birthday Wishes”, “Wedding anniversary”.
6. Providing good customer service.
7. Brining loyalty Programmes.
8. Regular customer providing membership cards for discounts to retain them.
9. The system needs to have central data with the computerization connected network with
each branches.
10. The gathering customer data about services helps determining the service gap analysis
for Girias and improving the services which they lack a most.
11. Improving the selling process to regular customer keeping track of them and bringing
cross selling of certain products.
12. Penetration for capturing Rural market as one of the fastest growing regional stores.
13. Providing service within specified time help in building or gaining trust of customers and
referral programmes or word of mouth may improve the sales of product.

Conclusion:
This project has helped Girias to have cost effective solution for managing the customer data.
The project has given practical knowledge of CRM software can be developed by using MS-
excel. The CRM is play key role for success of any business or organizations and needs to be
updated every day by day for sustaining in the competition.
The Girias India needs to have lot of improvements in CRM for retaining their customers by
bringing new CRM practices. The companies have accepted few of the suggestions and have
taken steps to improve their CRM by avoiding the charging of processing fees for customers on
any product.

Bibliography

6.1. Books:
✓ Ralph Kimball, Margy Ross, The Data Warehouse Tool kit, Wiley Computer
Publishing, Singapore
✓ Michael J. A. Berry, Gordon S. Linoff, Mastering Data Mining: The Art and
Science of Customer Relationship Management, Wiley Computer Publishing,
Singapore.
✓ N.H.Mullick, Customer Relationship Management, Oxford University Press.
6.2. Websites:
▪ Organization details
✓ www.girias.com
▪ Industry profile
✓ https://www.ibef.org/industry/retail-india.aspx
✓ https://www.firstresearch.com/Industry-Research/Nonstore-
Retail.html
✓ http://shodhganga.inflibnet.ac.in/bitstream/10603/10202/8/08_chapt
er%201.pdf
✓ www.india.oup.com
▪ Journal Papers:
✓ Columbus, Louis (2013), “Roundup of CRM Forecasts and Market

Estimates, 2012,” Forbes, (accessed December 16, 2013).
✓ Bharadwaj, A. (2000). A resource-based perspective on information
technology and firm performance: An empirical investigation. MIS
Quarterly, 24, 169–196.
✓ Baraklibai(2007): “ Short term thinking is getting in the way of the real
issued: what is the value of a customer and how can we enhance it?”

Harvard Business review south Asia, pp.30-31.

✓ Winer, R. S. (2001), A framework for customer relationship management.
California Management Review, 43(4), 89-105.
✓ Lita van Wel and Lamb`er Royakkers, Ethical issues in web data mining,
Ethics and Information Technology 6: 129–140, 2004., Kluwer Academic
Publishers, Netherlands.
✓ Jarratt, D. G., & Katsikeas, C. S. (2009). How does relationship management
infrastructure influence performance? Journal of Marketing Management,
25(1–2), 51–74.
▪ Other references:
✓ https://ocw.mit.edu/index.htm
✓ www.edx.org/MIT

ANNEXURES

I. List of Tables:
SI.NO List of Tables Page.No
1 Table.3.1.List of products 49
2 Table.3.2.List of Dealers 58
3 Table.3.3.List of competitors in Dharwad 59
4 Table 4.1.Girias retail parameters 63
5 Table4.2.Customer Data base 66
6 Table 4.3.Result execution in Ms-excel 67-68

II. List of figures:
SI.No List of Figures Page no
1 Figure 1.1. The Evolution of Relationship Orientation 21

Figure 1.2 Anglo-Australian Approach of Relationship
2 Marketing 23
3 Figure 1.3 Nordic Approaches to Relationship Marketing 24

Figure 1.4 North American Approaches to Relationship
4 Marketing 24
5 Figure 1.5 The Six Markets Framework 26
6 Figure 1.6 Shift in focus 28
7 Figure 2.1.Diagram representing customer value 33
8 Figure 2.2.Diagram representing customer value full life cycle 35
9 Figur2.3.CRM cycle process and IT components 37
10 Figur3.1.Organization Chart of Girias 52
11 Figur3.2.Distribution channel of Girias 53
12 Figur3.3.Flow diagram for selling process of Girias 54
13 Figur3.4.Flow diagram for purchase Department 56
14 Figure4.1. flow diagram for the Ms-excel Macro development 62
15 Figure4.2.Flow chart for If else program me 70


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Customer Relationship Management practices at Girias India Dharwad

Kousali Institute of Management Studies, Karnataka University Dharwad Page 1

Kousali Institute of Management Studies, Karnataka University Dharwad Page 2

Kousali Institute of Management Studies, Karnataka University Dharwad Page 3

Need of the study:

Kousali Institute of Management Studies, Karnataka University Dharwad Page 4

Research methodology consisting of following steps:

1. Collection of 100 customer data from secondary sources of the organization.

Kousali Institute of Management Studies, Karnataka University Dharwad Page 5

Kousali Institute of Management Studies, Karnataka University Dharwad Page 6

1. Introduction of the study:

Kousali Institute of Management Studies, Karnataka University Dharwad Page 7

Kousali Institute of Management Studies, Karnataka University Dharwad Page 8

Kousali Institute of Management Studies, Karnataka University Dharwad Page 9

1.1 History of Retailing in India:

Kousali Institute of Management Studies, Karnataka University Dharwad Page 10

1.2 Categorization of Retail Industry:

Kousali Institute of Management Studies, Karnataka University Dharwad Page 11

Kousali Institute of Management Studies, Karnataka University Dharwad Page 12

1.3. Introduction of the Customer Relationship Management:

a).CRM (customer relationship management)

CRM (customer relationship management) is an information industry term for methodologies,

According to one industry view, CRM consists of:

1. Helping an enterprise to enable its marketing departments to identify and target

Kousali Institute of Management Studies, Karnataka University Dharwad Page 13

3. Allowing the formation of individualized relationships with customers, with the

Kousali Institute of Management Studies, Karnataka University Dharwad Page 14

Kousali Institute of Management Studies, Karnataka University Dharwad Page 15

c).Why – Customer Relationship Management

Kousali Institute of Management Studies, Karnataka University Dharwad Page 16

d).Benefits of Customer Relationship Management

A Customer Relationship Management system may be chosen because it is thought to provide

a. Quality and efficiency

f).Increase in customer retention

a. Customer satisfaction ratings improved

Kousali Institute of Management Studies, Karnataka University Dharwad Page 17

I. Product- or company-related postings

a. More sales lead with expressed interest or need

Kousali Institute of Management Studies, Karnataka University Dharwad Page 18

f. High response rate to coupon or promotion offered on Facebook or other social

1.6. Product development:

1.7. Horizontal vs. Vertical:

Kousali Institute of Management Studies, Karnataka University Dharwad Page 19

Customer Relationship Management (CRM) is to create a competitive advantage by being the

i. Rapid advances in technology,

Kousali Institute of Management Studies, Karnataka University Dharwad Page 20

Figure 1.1. The Evolution of Relationship Orientation

1.8. Technological Advancement:

Kousali Institute of Management Studies, Karnataka University Dharwad Page 21

1.9. Intensive Competition:

1.10.Growing Importance of the Service Sector :

Kousali Institute of Management Studies, Karnataka University Dharwad Page 22

1.11.Schools of Thought on CRM:

1. The Anglo-Australia Approach,

The Anglo-Australian approach integrated the contemporary theories of quality management

Figure 1.2 Anglo-Australian Approach of Relationship Marketing

Kousali Institute of Management Studies, Karnataka University Dharwad Page 23

Figure 1.3 Nordic Approaches to Relationship Marketing