A JOURNAL OF COMPOSITION THEORY ISSN : 0731-6755
A STUDY ON CUSTOMER REALTIONSHIP MANAGEMENT WITH AAVIN MILK PRODUCTS IN CHENNAI CITY Dr. J. SULAIMAN Assistant Professor & Research Supervisor, PG & Research Department of Commerce, The New College (Autonomous), Chennai. E.mail:[email protected]
Mrs. N. A. ARSHIYA AFRIN Research Scholar, The New College (Autonomous), Chennai, E.mail:[email protected]
ABSTRACT Customer relationship management (CRM) is an attitude to succeed up with company to collaborate with current and potential customers. With the help of data analysis about customers' records with a company to progress business relationships with customers, precisely concentrating on customer retention and eventually motivating sales growth. One of most vital feature of the CRM is that it accumulates data from a various communication channels, including a company's website, telephone, email, live chat, marketing materials and more recently, social media. Though CRM provides lots of facilities for current and potential customers, many existing companies still know more about their targeted audiences and they very well know best way to fulfill their needs. CRM aim’s at development of a company’s capability to attain the final goal of retaining customers and to gain a strategic benefit over its competitors. This paper attempts to study the CRM with Aavin milk products in Chennai City. For this study a sample 50 Aavin customers from Chennai city are considered. Both primary and secondary data is used in this research study. Some of the major findings of this study is steps should be taken to train sales representative to have a good channel of communication with its customers. CRM being very cost effective it can be implemented in any organization which will in turn reduce paper and human resources related work respectively. Keywords: Customer Relationship Management, Customer Service, Customer Interaction, Customer Retention, Aavin Milk Products, Chennai City. 1. INTRODUCTION Customer Relationship Management (CRM) in nutshell can be defined as “Targeting and Serving Customers “it is also known as Customer Service Management, CRM includes numerous vital objectives: CRM tools aid the company to recognize and target its customers. CRM permits a business to obtain enhanced sales rewards, and helps in executing marketing strategies and plans accordingly in order to move towards its goals and business objectives.
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For better understanding lets says, a small business will have a thorough database of their best customers, their relationships with such companies in wider way. This will enable the company to easily regulate its customers’ needs, purchasing habits and preferences about product and services. Therefore, this helps the company in establishing personalized relationships with their customers which will eventually aids in inspiring customer satisfaction and so that they can deliver best customer service accordingly. Technology plays important role in CRM procedures which will in turn shows greater impact on consumer’s purchasing behavior. CRM uses various business management tools such as browsers, software applications, Internet and mobile phone to help, businesses to get in contact with their customers, anytime, anywhere to collect and communicate customer information. As an advancement of current technology customer relations are now being managed through electronic means such as coupons, sale alerts, and any kind of event invitations are now been received through email. Any kind of company’s announcements, updates and new information about new product launch product are now being communicated via SMS and E-mail.CRM and marketing department’s go hand in hand. It provides them with immediate customer research and direct response from the market. If companies effectually retort to the requirements of its customers, such customers will support their products and there will be improving numbers of new customers will be added in to the list, which will lead company to taste success then it’s a win-win situation all around. Brief Profile of AAVIN Aavin is the Trademark of the Tamil Nadu Co-operative Milk Producers Federation Limited (TNCMPF) .The term “Aavin” is been derived from Tamil word (AA-COW) which indicates COWS MILK. Aavin mainly deals with procuring, processing, packing and selling of milk and its products. Its works using Three Tier model in which, Tier-1 deals with village level, Tier-2 deals with district level, and Tier-3 deals with state level. TNCMPF is an apex body of 19 District Cooperative Milk Producers' Union. Its head quarter is located at Nandanam, Chennai. It has its four dairy plant at Ambattur (Milk Dairy),Madhavaram, Sholinganallur, Ambattur(Product Dairy). Aavin produces four varieties of milk. Toned (3% fat), Doubled toned milk (1.5% fat), Standardized Milk (4.5% fat), Full Cream Milk (6% fat). And it also produces various Bi-products of milk (Ice-creams, Paneer, khova, butter, curd) are the top sellers in the list. 1.1 Need for the Study It helps in creating awareness about Aavin milk products in to the market which will in turn helpful to the organization in boosting up sales. To evaluate the position of Aavin milk products in the market. To ascertain the demand for Aavin milk products among its customers. 1.2 Objectives of the Study To Understand Customer Relationship Management of Aavin milk products in Chennai City. To Study the factors which a plays major role among Customers to buy Aavin milk products in Chennai City.
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To evaluate the problems faced by customers in buying Aavin milk products in Chennai City. 2. LITERATURE REVIEW Werner Reinartz, Manfred Krafft and Wayne D. Hoyer(2004),In this study says that, they have emphasized an understanding of how to manage relationships with customers effectively however the researcher says customer effectiveness has become an important topic for both academicians and practitioners in recent years. However, the existing academic literature and the practical applications of customer relationship management (CRM) strategies do not provide a clear indication of what exactly constitutes CRM processes however the main objectives of this study are based on: (1) abstract a construct of the CRM process and its dimensions, (2) operationalize and validate the construct, and (3) empirically investigate the organizational performance consequences of implementing CRM processes. Author has specified that his research queries are taken in to two cross-sectional studies across four different industries and three countries. The first key result is a theoretically sound CRM process measures that summary three key phases: initiation, maintenance, and termination. The second key result is that the implementation of CRM processes has a moderately positive association with both perceptual and objective business show. Peter C. Verhoef(2003),According to this paper, researcher of this study shapes that, there are many research made on the effectiveness of customer relationship management with effort on customer retention and customer share development .where the scholars says that they have been many questions upstretched on the effectiveness of numerous customer relationship management tactics. The author inspects the variance effects of customer relationship perceptions and relationship marketing devices on customer retention and customer share development eventually. Customer relationship perceptions are measured as valuations of relationship strength and a supplier’s contributions, and customer share development is the change in customer share between two phases. The end product reveal that affective commitment and loyalty programs that provide economic motivations positively affect both customer retention and customer share development, whereas direct mailings stimulates customer share development. Though, the effect of these variables is pretty small. The outcomes also display that firms can use the same approaches to affect both customer retention and customer share development. 3. RESEARCH METHODOLOGY This study is based on both primary and secondary sources of data. Primary data is been collected by distribution of questionnaire to the Aavin users. Secondary data has been collected from the Company Website, and Updated Journals. A sample size of 50 Aavin customers as respondent from Chennai city is considered for obtaining data and the convenience sampling method has been used to spot the customers visiting the place. For evaluating the data, a simple percentage has been used to conclude the results.
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4. DATA ANALYSIS AND INTERPRETATION From the below Table.No.1, it is indicated that for data analysis few factors that are taken into account there are:(i) Medium through which customers are aware about Aavin milk products, (ii) Aavin Milk Products which are high in demand/Fast Moving Products (iii) Reasons for Opting Aavin Milk Products, (iv) Income Group, (v) Nature of Family, (vi) Customer Services, (vii) Customer Satisfaction (viii)Communication and (ix)Overall experience with Aavin Milk Products were some of the issues investigated. Table no: 1 Customers response towards Aavin milk products in Chennai city Sl. % of Particulars No. Respondents 1) Medium through which customers are aware about Aavin Milk Products: a)Television Ads 07% b)Sign boards 15% c)Sales persons 22% d)Friends & Relatives 56% 2) Aavin Milk Products which are high in demand/Fast Moving Products: a)Milk 78% b)Ghee 07% c)Khova 03% d)Kulfi 12% 3) Reasons for Opting Aavin Milk Products: a)Brand Name 16% b)Price 32% c)Quality 45% d)Availability 07% 4) Income Group: a)Very Low Income(Below 3,000) 10% b)Low Income(3,000-7,000) 22% c)Medium Income(7,000-10,000) 28% d)High Income(10,000 & Above) 40% 5) Nature of Family: a)Very Small(Below 3 Persons) 29% b)Small(3-5 Persons) 48% c)Medium(5-8 Persons) 15% d)Large(More than 8 Persons) 08% (Source: Primary Data)
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Medium largeT.V adsSign BoardSales Person Small 3% 2% 2% 3% 4% 10% Friends &Realtives Very small 11% 6% High income10 8%
Milk Medium Income 15% 6% Low income Ghee Khova very low4% income Kulfi 2% 1% 2%Availability Brand2% Name 2% Quality Price 3% 9% 6%
(Figure.No:1 Customers Response towards Aavin Milk Products in Chennai City) According to the Figure.No.1, it is understood that the mainstream of respondents have come to know about Aavin milk products through Friends & Relatives (56%), Sales persons (22%), Sign Board (15%) and Television Adds(7%)Hence, it is concluded that Friends & Relatives played significant role in creating awareness about Aavin milk products in Chennai City. The above study states that majority of respondents preferred to buy Milk (78%), and Kulfi (12%), and these products of Aavin are considered as fast moving into the market. were as, Ghee (07%) and Khova (03%)are preferred by customers respectively. Hence, it is concluded that Milk is considered as highest product in demand. It is also determined that, one of most important reason for customers to buy Aavin milk products is Quality(45%) and then Price(32%).were as, Brand Name(16%) and Availability (07%) considered respectively. Hence, it is concluded that (i) Quality and (ii) Price of Aavin milk products could win the souls of the customers than any other factors. It’s observed that income group of customer with High Income(40%) prefer buying Aavin milk products compared to Medium income(28%),low income(22%) and very income(10%) group of customers. Hence it is concluded that customers preferably with high income opt to buy Aavin milk products because of best quality provided my Aavin industry. Further Most, Small Size Family (48%) are most attracted to buy Aavin milk products then very Small (29%), Medium (15%), Large size Family (08%).Hence it is concluded that Small Size Family with (5to8 member’s) are more comfortable in buying Aavin milk products compared to other family size customers.
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Table No: 2 Customers Perception towards Aavin Milk Products In Chennai city S.no Customers Perception Highly Disagree Undecided Agree Highly Disagree Agree 1) Whether Aavin Provides 14% 9% 0% good customer service to 51% 26% its customers. 2) Whether Aavin Provides 9% 7% 0 satisfaction to its 53% 31% customers. 3) Whether Aavin Hold 8% 16 % 4% good communication 48% 24% channels with its customers (Source: Primary Data) The above mentioned Table.No.2, points out that customer perception towards Aavin milk products in Chennai city. Customer Perception are evaluated based on (i) Customer services, (ii) Customer satisfaction, (iii) Communication channels for customers.
51 53 48
31 26 24
14 16 9 8 9 7 0 0 4
HIGHLY DISAGREE DISAGREE UNDECIDED AGREE HIGHLY AGREE
Customer services Customer satisfication Communication Channel
(Figure No: 2 Customers Perception towards Aavin Milk Products in Chennai City) According to Figure.No-2 shows that the customer service offered by Aavin points the level of customer expectations from its end users it is because majority of respondents are help with the service provided by them agreed (51%) and highly agree (26%) whereas (9%) and (14%) are not really happy with services provided by Aavin due to varies reasons. Hence, it is concluded that Aavin milk products stands for good customer services in Chennai City. When we talk on the part of customer satisfaction of Aavin milk products majority of respondents go in favor of Aavin, with highly agree (31%), agree(53%) and rest of them could not satisfy with the offering of Aavin with(9%) and (7%) respectively. Hence, it is concluded that Aavin milk products secured to satisfy its customers on the list according to this study. Further, it shows how Aavin milk products maintains an
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decent communication channel with its customers and it is witnessed that majority of respondents ranked with as highly agree (24%), agree(48%),(8%) and rest of them (16%) were not happy for poor communication channels with Aavin milk products in Chennai City. Hence, it is concluded that the Aavin is able to maintaining eminence communication channels with its customers so that any queries or feedbacks are updated on time without any much delay through these channels. Table No: 3 Overall Experiences with Aavin Milk Products In Chennai City Sl. No. Particulars % of Respondents
1) Poor 6%
2) Good 45%
3) Satisfactory 38%
4) Excellent 11%
(Source: Primary Data) The above mentioned Table.No.3, points out the overall experience of customers with Aavin milk products in Chennai City. Customer experience is estimated basedon(i) Poor,(ii) Good,(iii)Satisfactory and (iv)Excellent Experience level in this study.
(Figure No: 3 Overall Experience with Aavin Milk Products in Chennai City) According to Figure.No-3 indicates that overall experiences of the customers are ranked to be having exceedingly overall good experience with (45%) services offered by Aavin milk products users. (38%) are satisfied with overall experiences of Aavin milk products with its customers in Chennai City. Furthermore, it is very important to make a note that only hand full of that is only(11%) customers feel that Aavin gives overall pleasant and excellent experience to its customers. This study also brings up that there a small but amount of population who still feels that Aavin provides Poor services (6%) in terms of overall experiences to its customers which has to be improved in near future. Hence, it is concluded that the Aavin is able to retain its customers by providing Good services when it comes to overall experiences to its customers for enhancing long term relationship.
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FINDINGS Sales representative of Aavin milk products and Friends & Relatives who are ultimate user of Aavin milk products holds a major role in creating awareness and acts a source of information about Aavin milk products and it is also known as most favored place for buying and selling almost all dairy products in Chennai City. It is initiated from this study that the Aavin manages to full fill the needs of the customers in terms of providing good quality products at reasonable price which is affordable by all types of customers with different Income and Family types. As we all know that Aavin is known for this packed milk packages it is also found in this study that besides milk other highly demanded products are kulfi, ghee and khova respectively. Aavin is able to keep up a very fair communication channels with its customers for crafting healthy relationship in nearby future with its customer. According to that data used for this study states that overall experiences with Aavin has found to be fairly good and satisfactory but not excellent. SUGGESTIONS It is suggested that sale representatives of Aavin milk products should work on their skills in order that they can provide better customer services by hearing to customers grievances on time. This can be done by trainings such works from time to time. Aavin should work on increasing the production of all its products with all its varieties and flavors in order to satisfy its customers with needs of different flavors.it is seen that the in majority of Aavin parlous and boots lack in supply of varies different flavors most of the time. Focusing on customers and working on their needs will boosts the customer satisfaction. It also pay ways for getting increased business which eventually brings profit to Aavin. It is a universal truth that, if the customer is satisfied with your products and services they will tend to remain loyal to your brand and make business with you for a longer time. This will progress their customer population and ultimately results in growth of the business. Such can be achieved by implementing effective Customer relationship Management (CRM) in full filling customer needs, eventually ends up in to advantageous relationships. One of the most important characteristic of CRM is that it is very much cost-effective. The greatest advantage of properly implemented CRM system is that it takes minimal usage of paper and physical work which in turns reduces human resources to manage and deal with it. The technology used in implementing a CRM system is very economical and smooth as compared to the traditional way of business.
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CONCLUSION Customer Relationship Management is a most effective method in terms of cost and man power for managing and refining the customer relationship and holding the customers by way of generating frequent purchase of Aavin milk products. Advancement in methodology and improvement in technology which can be in form of CRM software can be used for uninterrupted and auto apprises of the customer data. There is always a reciprocated advantage through CRM, because it is the ‘Era of customers’ Aavin should concentrate on customer oriented method which will help in aiding customers for longer period of time. CRM practices need to be ground-breaking and should always attempt to convey the customer with some supplementary value for long-lasting relationships. REFERENCES 1. Goldenberg, B.J. (2008). CRM in Real Time: Empowering Customer Relationships. Information Today, Inc., p-3. 2. Kotler, P., (1998). Managing Customer Relationships: Lessons from the Leaders, The Economist Intelligence Unit, 1998, p.27. 3. Mueller, B. (2010). “Dynamics of International Advertising: Theoretical and Practical Perspectives” Peter Lang, p.31. 4. Pahuja Anurag & Verma Rajesh (2008). Customer Relationship Management Need of the Hour, Marketing Mastermind, January. p. 26-29. 5. Peppers D. and Rogers, M., (2004). Managing customer relationships: A Strategic Framework, John Wiley & Sons, 2004. 6. Peppers, D. & Rogers, M. (2011). Managing Customer Relationships: A Strategic Framework. John Miley & Sons. 7. Pradan, S. (2009). Retailing Management: Text & Cases, 3rd edition, Tata McGraw-Hill Education. 8. Raab, G., Ajami, R.A., Gargeya V. & Goddard, G.J. (2008). Customer relationship management: a global perspective. Gower Publishing, p.6. 9. Reinartz, W. and Kumar, V., (2002). The Mismanagement of Customer Loyalty, Harvard Business Review, July 2002.
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