A STUDY ON THE CUSTOMER RELATIONSHIP MANGEMENT

AT TUBE PRODUCTS OF INDIA CHENNAI.

Submitted By Mr.P.DINESH (Reg. No. 1029152) Of Department of Management Studies VEL TECH MULTI TECH Dr. RANGARAJAN Dr. SAKUNTHALA ENGINEERING COLLEGE (ACCREDITED BY NBA & ISO 9001:2008 CERTIFIED INSTITUTION) (Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY) Avadi, Chennai-600 062 A PROJECT REPORT Submitted To Faculty of Management Studies In Partial Fulfilment of the Requirement for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY OF TECHNOLOGY, CHENNAI 25

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JULY 20 VEL TECH MULTITECH DR.RANGARAJAN DR.SAKUNTHALA ENGINEERING COLLEGE (ACCREDITED BY NBA & ISO 9001:2000CERTIFIED INSTITUTION) (Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY) Avadi, Chennai-600 062 DEPARTMENT OF MANAGEMENT STUDIES _____________________________________________________________________________ Date: ...../../2011

CERTIFICATE
Certified that the project report titled A STUDY ON THE CUSTOMER

RELATIONSHIP MANAGEMENT has been conducted in TUBE PRODUCTS OF INDIA,CHENNAI is a bonafide project work of P.DINESH, (Reg. No.1029152) who
carried out research under my supervision certified further, that to the best of my knowledge the work reported here in does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

INTERNAL GUIDE

HEAD OF THE DEPARTMENT

PRINCIPAL

INTERNAL EXAMINER

EXTERNAL EXAMINER

ACKNOWLEDGEMENT

First of all I take this opportunity to express my gratitude to our Chairman Prof.Dr.R.Rangarajan, B.E (Elect), B.E (Mech), and M.S (Auto) Ph.D, and to the principal Dr.Siddhappa Naidu, M.E., Ph.D, of Vel Tech Multi Tech Dr.Rangarajan Dr.Sakunthala Engineering College, Avadi.

I would like to extend my sincere thanks to HOD & My Internal Guide Mr.Sathyanarayanan, MBA, (Ph.D), Assisstant Professor, Dept. Of Management Studies and all my faculties.

I express my sincere gratitude from the depth of my heart to my respectful GM (OPERATIONS) Mr. RAVIKUMAR and Mr.A.ARUL (MKG MGR) of TUBE PRODUCTS OF INDIA, Chennai.

I am grateful to My Family Members for the constant love, encouragement and financial support throughout my studies.

(Mr.P.DINESH)

TABLE OF CONTENTS
CHAPTER NO List of tables List of figures List of abbreviations Abstract INTRODUCTION 1.1 Industry Profile 1.2 Company Profile 1.3 Product profile 1 1.4 Statement of the Problem 1.5 Objectives of the Study 1.6 Scope of the Study 1.7 Limitations 2 LITERATURE SURVEY 2.1 Review of Literature RESEARCH METHODOLOGY 3.1 Methods of sampling 3.2 Methods of data collection 3.3 Tools for Analysis DATA ANALYSIS AND INTERPRETATION 4.1 Production facility data and Inferences 4 4.2 Inventory management data 4.3 Information management data 4.4 Sourcing decisions data 5 SUMMARY OF FINDINGS AND SUGGESTIONS 5.1 Summary of Findings 5.2 Suggestions & Recommendations
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CONTENTS

PAGE NO 5 6 7 8 9 17 18 19 22 22 23 23 24 24 28 29 32 34

40 42

5.3 Conclusion APPENDIX Bibliography

43 44 46

LIST OF TABLES
S.NO 1 2 NAME OF THE TABLE EVOLUTION OF CRM FEATURES AND BENEFITS OF BSA FEATURES AND BENEFITS OF HERCULES PAGE NO 12 19

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S. No. 1 2 3

Name of the figure

CUSTOMER RELATIONSHIP MANAGEMENT HERCULES BSA

Page No. 10 19 20

LIST OF FIGURES

LIST OF ABBREVATIONS CRM AMA TII TPI AFML Customer Relationship Management Automotive Manufacture Association Tubes Investments of India Tubes Product of India Aero Foam Metals Limited

ABSTRACT
Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.

CHAPTER 1
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INTRODUCTION

CRM, or Customer relationship management, is a number of strategies and technologies that are used to build stronger relationships between companies and their customers. A company will store information that is related to their customers, and they will spend time analyzing it so that it can be used for this purpose.It is commonly used by corporations, and they will focus on maintaining a strong relationship with their clients.

Customer support is directly connected to CRM. If a company fails to provide quality customer support, they have also failed with their CRM system. When a customer makes complaints, they must be handled quickly and efficiently. The company should also seek to make sure those mistakes are not repeated. When sales are made, they should be tracked so that the company can analyze them from various aspects. It is also important to understand the architecture of Customer relationship management. The architecture of CRM can be broken down into three categories, and these are collaborative, operational, and analytical. The collaborative aspect of CRM deals with communication between companies and their clients.

Customer relationship management could be better defined as being a methodology, an approach that a company will use to achieve their goals. It should be directly connected to the philosophy of the company. It must guide all of its policies, and it must be an important part of customer service and marketing. If this is not done, the CRM system will become a failure. There are a number of things the ideal CRM system should have. It should allow the company to find the factors that interest their customers the most. A company must realize that it is impossible for them to succeed if they do not cater to the desires and needs of their customers. Customer relationship management is a powerful system that will allow them to do this.

CUSTOMER RELATIONSHIP MANAGEMENT:

The concept of customers relationship marketing (CRM) has stemmed up from problem of traditional marketing. CRM recognizes the concern for both traditional function of marketing and its scope with a goal of developing a cross functional, coordinated focus on customers that is to reorient the entire business to face the market.

CUSTOMER RELATIONSHIP MANAGEMENT The focus of marketing has changed from acquiring new customers to retaining old ones. This requires a different mindset and a different and a new set of tools. A good thought experiments for an executive audience is to ask them how much they spend or focus on acquisition versus retention activities. While it is difficult to perfectly distinguish the two activities from each other, the answer is usually, that acquisition dominates retention. The top four reasons for implementing CRM are: 1.Gaining customer confidence and loyalty 2.Providing personalized service to customers 3.Acquiring better knowledge of customers and their buying habits 4.Differentiating themselves from the competition

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CRM changes all of this and represents a continuing evolution in managing front office operations. With CRM, traditional departmental applications for sales, marketing and customer service are consolidated into a single unified system capable of managing the entire customer life cycle. This approach allows employees throughout an organization to have immediate access to a complete profile of important customer information. Organizations who are implementing CRM solutions feel confident that providing access to this level of information will assist their sales and support staff in better understanding the needs and buying patterns of their customers. What exactly is the definition of Customer Relationship Management? Ask a dozen professionals, get a dozen different definitions. Heres a general overview: CRM is used to learn more about your key customer needs in order to develop a stronger relationship with them. Customer Relationship Management can be defined as company activities related to increasing the customer base by acquiring new customers and meeting the needs of the existing customers. CRM is about building partnerships with your customers. It uses internal business processes from Sales, Customer Service and Marketing. The philosophy of CRM is the recognition that your long-term relationships with your customers can be one of the most important assets of an organization, providing competitive advantage and improved profitability The most important part of CRM is the customer-focus. According to one industry view, CRM consists of: Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team. 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)
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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. Providing employees with the information and processes necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution partners. CRM uses technology, strategic planning and personal marketing techniques to build a relationship that increases profit margins and productivity. It uses a business strategy that puts the customer at the core of a companys processes and practices. It requires this customer focused business philosophy to support effective sales, marketing, and customer service and order fulfillment.

The following table suggests the evolution of Customers Relationship Marketing: Period 1950s 1960s 1970s Focus Area Customer Good Marketing Industrial Goods Marketing Marketing of Non-Profit Organization or Societal Marketing 1980s Services Marketing 1990s Customers Relations Marketing

Table 1: evolution of CRM

HISTORY OF CRM
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Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990s with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them. In the last several years, however, newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the price of newer, more customizable Internet solutions have hit the marketplace; competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs. In the beginning The 1980s saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companys customers. In the case of larger, key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs. In the case of smaller clients, however, it tended to provide repetitive, survey-like information that cluttered databases and didnt provide much insight. As companies began tracking database information, they realized that the bare bones were all that was needed in most cases: what they buy regularly, what they spend, what they do.

Advances in the 1990s In the 1990s companies began to improve on Customer Relationship Management by making it more of a two-way street. Instead of simply gathering data for their own use, they began giving

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back to their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty. This was the beginning of the now familiar frequent flyer programs, bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service.

WHO IS A CUSTOMER?
A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services. However, in certain contexts, the term customer also includes by extension any entity that uses or experiences the services of another. A customer may also be a viewer of the product or service that is being sold despite deciding not to buy them. The general distinction between a customer and a client is that a customer purchases products, whereas a client purchases services. The word derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future. The slogans "the customer is king" or "the customer is god" or "the customer is always right" indicate the importance of customers to businesses although the last expression is sometimes used ironically. However, "customer" also has a more generalized meaning as in customer service and a less commercialized meaning in
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not-for-profit areas. To avoid unwanted implications in some areas such as government services, community services, and education, the term "customer" is sometimes substituted by words such as "constituent" or "stakeholder". This is done to address concerns that the word "customer" implies a narrowly commercial relationship involving the purchase of products and services.

CUSTOMERS NEEDS FROM A PRODUCT

With few exceptions, every job people need or want to do has a social, a functional, and an emotional dimension. If marketers understand each of these dimensions, then they can design a product that's precisely targeted to the job. In other words, the job, not the customer, is the fundamental unit of analysis for a marketer who hopes to develop products that customers will buy. To see why, consider one fast-food restaurant's effort to improve sales of its milk shakes. (In this example, both the company and the product have been disguised.) Its marketers first defined the market segment by productmilk shakesand then segmented it further by profiling the demographic and personality characteristics of those customers who frequently bought milk shakes. Next, they invited people who fit this profile to evaluate whether making the shakes thicker, chocolatier, cheaper, or chunkier would satisfy them better. The panelists gave clear feedback, but the consequent improvements to the product had no impact on sales.

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Requirements of customers from a product

1. Price 2. Quality 3. Quantity 4. Brand image 5. Competitors

BENEFITS OF CRM
A CRM system may be chosen because it is thought to provide the following advantages: 1. Quality and efficiency 2. Decrease in overall 3. Decision support 4. Enterprise agility 5. Customer Attention

INDUSTRY PROFILE
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MURUGAPPA GROUP
Headquartered in Chennai, the Rs.7300 plus core Murugappa Group is India's leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas of business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycle, sugar farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states. The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, Cerdak, DBS Bank, Mitsui Sumitomo and Group Chimique Tunisian and has consolidated its status as one of the fastest growing diversified business house in India. They do not market their brands for increasing the sales of their products. They cleverly campaign for Cycling and its benefits and thus indirectly get their products sold out. Really good marketing strategy. They manages their factory and plants in and around India without any problems from their workers in the form of strike and all. For e.g. There was a strike in the year 1978 after that there is no such yet, really a good Human Resourcing strategy.

COMPANY PROFILE TUBE PRODUCTS OF INDIA

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TI Cycles of India is a part of Tube Investments of India (TII), a flagship company of the Rs.7300 plus crore conglomerates Murugappa Group. The company which started in 1949 has been at the forefront of innovations and a pioneer in the market of cycles. TI is the second largest manufacturer of bicycles in India, marketing top brands like Hercules and BSA. With a network of 2500 plus dealers and backed by a strategic outsourcing policy, the company has a nationwide presence. It has 3 fully functioning plants across India at Chennai, Nasik and Noida and 7 regional offices situated across the country. The company is a market leader in the value-added special segment, with a 50 percent market share. TI Cycles is an exporter to many a region across the globe Europe, South East Asia and Africa, being some of them. At present, TI has fourteen BSA GO stores across India.TPI is the preferred supplier of precision tubes, Electric Resistance Welded (ERW) and Cold Drawn Welded (CDW), to major automotive companies in India and abroad. TPI is India's undisputed market leader in CDW tubes to the automotive industry. It has also significant market presence in power plants, boiler, textile machinery, general engineering. It is the Market leader in Telescopic Front Fork Inner tubes and Cylinder bore tubes for shock absorber and gas spring applications, Propeller shaft tubes for Automotive segment. Other Specialty products include Rear Axle Tubes, Side Impact Beams, Tie Rods, Drag links, Heavy thick steering shafts.

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PRODUCTPROFILE

Our first brand is still as young as ever, signifying strength and passion. It is rugged, robust and is for the rough and tough. Hercules stands for a unique pride of possession.Hercules stands for strength and speed. The various models of Hercules MTB are pioneers in the bicycles category catering to the youth. The Hercules Popular brand of "standard" bicycle is a market leader. Hercules is the flag ship brand of the TI Cycles portfolio. This brand of ours is still as young as ever - signifying strength and passion.

Steel Frame 360 degree Rotatable Handle Bar Front & Rear Stunt pegs Tires 20X2.125 Nylon tires with Butyl Tube Alloy Brake Levers Front & Rear V-Brake Quick release on Seat tube

Look & Appeal To enhance the experience during skills To perform stunts with greater accuracy For better Grip while performing Stunts Sturdy & Rust Free For effective braking Adjusting height for better posture

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It signifies the joy of cycling. Excitement and comfort go hand in hand with BSA. Today, BSA is an intrinsic part of the Indian family with models for kids, teens and adults.BSA stands for style, fun and comfort. There are several models catering to consumer segments ranging from kids, ladies and other premium end customers. BSA Ladybird, BSA SLR, BSA Champ are trendsetters and icons in their respective categories.BSA is another Flagship Brand of TI Cycles. BSA stands for Birmingham Small Arms. This brand signifies the joys of cycling, fun and excitement.

Lower Step thru frame

For easy mount & 20

dismount Wide comfortable saddle with spring Longer stronger Carrier Skirt Guard Large Wire Mesh Basket For comfortable ride For Load Carrying For safety To carry extra stuff

STATEMENT OF PROBLEM
Measuring customer relationship management is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change. This study has been undertaken to study the relationship between customers and the company.

OBJECTIVES OF STUDY
Primary objective: To study of customer relationship management in the tube investment of India. Secondary objective: 1. To identify the Customer Relationship Management (CRM) of tubes product of India for cycles 2. To study the advantages of Customer Relationship Management in marketing Services.
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3. To simplify marketing and sales process of cycles. 4. To provide better customer services. 5. To discover new customers and increase customer revenue of cycles.

SCOPE OF STUDY:
This application can be implementing in those organizations where there is need for automation of sales work. This application minimize manual work in the organization so work load on organization will decrease and efficiency and effectiveness of the organization will increase. This application helps in reducing redundancy of the data and provides security so that unauthorized person cannot access the application.This application provide facility to analyze data of customer, sale and complains. This can be highly useful in planning marketing and sales strategy of the organization. It attempts to integrate and automate the various customer- serving processes within a company. CRM is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. Good customer relationships are at the heart of business success. So this application will help in building good customer relation with customer. With the help of this project, the organization will be able to managing customer data in effective way. Proper management of sales and customer data will provide facility of obtaining customer details time to time on the basis of which organization can make marketing and sales plan effectively.

LIMITATION OF STUDY
The limitations of this project are as follows 1. Difficult to work 2. Require additional work inputting data
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3. Dehumanize a process that should be personal 4. Require continuous maintenance, information updating, and system upgrading costly 5. Difficult to integrate with other management information systems

CHAPTER 2 REVIEW OF LITERATURE

Many studies and researches have been conducted relating to CRM by various researches and some of them have been discussed below: Lovelock (1996) The services sector of the economy is going through a period of almost revolutionary properties in which established ways of doing business continued to be shunted aside. Around the world, innovative new offering, new standards of services succeeded in the market where established competition has failed to please todays demanding customer. As per Mc Dowell (2000), CRM has become full-fledged subject of importance today. The Eight Ps Product, place, price, promotion, People, process and Physical Evidence and Pacehelping meeting customer standards and Expectation thus enhancing quality of Services and Brand loyalty. Parker (1958), in his DBA dissertation visualized the importance of Customer Services. Johanssons Dissertation in 1969, asked the question Are goods and services different? And launched the goods versus services debate. The Era of Pre 1980s has been defined as the Revolution of Services as stated by Regan (1963). During this period the Marketing was at infant stage and lot of things was to cleared. He expressed now the marketing through his traveled a long distance and the concept of services marketing has come into existence. He described the United States as well advance into device revolution that would significantly change consumer behavior.

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Berry (1985, 1988) suggested that the criteria used by customers are important in moulding their expectations, precipitations and hence satisfaction, fir ten dimensions, these are Tangibility, reliability, and responsiveness, communication, Credibility, security, Competence, Courtesy, Understanding and access. Later the author condensed it to five categories viz. Tangibility, Reliability, responsiveness, Assurance and Empathy Gronross added the sixth dimension i.e. recovery. Lewis and Smith (1999) investigated the expectation and precipitation of banks and building society retail customers with regard to 39 elements of services divided into 4 dimensions as Physical features, reliability, characteristics of the staff and responsiveness towards the customers. Ganesan (1994) suggested that long-term orientation in buyer-seller relationship is important, as it is the function of two things: mutual dependence and trust between them. Both these parameters help in bonding of buyer and seller thus improving their relationship. Stewart (1998) suggested that as the customer relationship marketing or management is given more stress in the recent past but much emphasis is required on why customers exit? Policies, strategies are to frame in order to avoid the situation. Seethapathi and Karuna (1999) discussed that only those banks would survive which would give quality services to the customers and believe in the long term relationship management. Vyas (1999) is of the view that customer satisfaction is the core competence tool for longterm relationship and profitability. He expressed the view that this would be possible only if the services provided to the customers are of highest quality. Aggarwal (2000) observed that the customer is the central figure in the relationship marketing as his loyalty can be commanded towards the particular brand of service. A.Purushothaman (2002) concluded that relationship building leads to customer loyalty, which, in turn, helps in retention of customers. Some highly successful companies use already exiting strong relationships to cultivate and strengthen new ones.
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Chris Lawer (2004) observed that the organizations who identify opportunities for improving customer relationships and who co-ordinate and measure change in all customer impact zones will have a greater chance of success.

Fossetal, (2008) observed how managing effective relationships with customers has become increasingly important in the era of constrained resources and global competition. The paper explains how customer relationship management (CRM) encompasses all tools, strategies and other technology-based capabilities that help a business organize and manage its customer relationships. Specifically, the paper outlines the goals CRM attempts to achieve in organizations and emphasizes how CRM is essential for a business' long-term survival and success. Alexander Krasnikovetal, (2009) :This study examines the impact of CRM

implementation on two metrics of firm performance operational (cost) efficiency and the ability of firms to generate profits (profit efficiency)using a large samples of products. The authors use stochastic frontier analysis to estimate cost and profit efficiencies and employ hierarchical linear modeling to assess the effect of CRM implementation on cost and profit efficiencies. They find that CRM implementation is associated with a decline in cost efficiency but an increase in profit efficiency. A firm-level factor, CRM commitment, reduces the negative effect of CRM implementation on cost efficiency. The authors also find that two adoption- related factors, time of adoption and time since adoption, influence the relationship between CRM implementation and cost and profit efficiencies Ismael D. Tabije,(2004) :Stated that better understanding of the customer is imperative in improving customer relationship. You should know and collect all available formation about the customers to be able to serve them well. Your customer database should be all inclusive and contain maximum information about their birthdays, exclusive events and even news updates about their promotions at their workplace. If
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you have some famous customers whose names appear in newspapers off and on, then you should keep the cuttings displayed at your store or place of business.

CHAPTER 3

RESEARCH METHODOLOGY
The research methodology for the project is specified as follows Primary Objective: Assessment of customer relationship management towards cycles with special reference to TPI.This was done by interacting with people through the medium of Questionnaires and Direct interviews being taken in some cases. The satisfaction greatly depends on the quality of service, the interests being provided on titanium product and the cost.The project helped in developing an insight about the Actual level of satisfaction and the Expected level of satisfaction. The various grievances that came forwarded during the survey and the various things which the customers wanted the industry to incorporate in its structure is attached in the report afterwards in the form of Recommendations. Through the project, the competitive strategies being followed by other industry were also analyzed.

MEANING OF RESEARCH Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In

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fact, research is an art of scientific investigation.

3.1 RESEARCH DESIGN

Research design is defined as A plan structure and strategy of investigation conceived so as to obtain answer to research question and control variables.

3.2 SAMPLING:
A Sampling is a part of the total population. It can be an individual element or a group of elements selected from the population. Although it is a subset, it is representative of the population and suitable for research in terms of cost, convenience, and time. The sample group can be selected based on a probability or a non probability approach. A sample usually consists of various units of the population. The size of the sample is represented by n. Sampling is the act, process, or technique of selecting a representative part of a population for the purpose of determining the characteristics of the whole population. In other words, the process of selecting a sample from a population using special sampling techniques called sampling. It should be ensured in the sampling process itself that the sample selected is representative of the population.

METHODS OF SAMPLING:
Random Sampling
The first statistical sampling method is simple random sampling. In this method, each item in the population has the same probability of being selected as part of the sample as any other item. For example, a tester could randomly select 5 inputs to a test case from the population of all possible valid inputs within a range of 1-100 to use during test execution, To do this the tester
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could use a random number generator or simply put each number from 1-100 on a slip of paper in a hat, mixing them up and drawing out 5 numbers. Random sampling can be done with or without replacement. If it is done without replacement, an item is not returned to the population after it is selected and thus can only occur once in the sample.

Systematic Sampling
Systematic sampling is another statistical sampling method. In this method, every nth element from the list is selected as the sample, starting with a sample element n randomly selected from the first k elements. Care must be taken when using systematic sampling to ensure that the original population list has not been ordered in a way that introduces any non-random factors into the sampling.

Stratified sampling
The statistical sampling method called stratified sampling is used when representatives from each subgroup within the population need to be represented in the sample. The first step in stratified sampling is to divide the population into subgroups (strata) based on mutually exclusive criteria.

Cluster Sampling
The fourth statistical sampling method is called cluster sampling, also called block sampling. In cluster sampling, the population that is being sampled is divided into groups called clusters. Instead of these subgroups being homogeneous based on a selected criteria as in stratified sampling, a cluster is as heterogeneous as possible to matching the population. A random sample is then taken from within one or more selected clusters. For example, if an organization has 30 small projects currently under development, an auditor looking for compliance to the coding
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standard might use cluster sampling to randomly select 4 of those projects as representatives for the audit and then randomly sample code modules for auditing from just those 4 projects. Cluster sampling can tell us a lot about that particular cluster, but unless the clusters are selected randomly and a lot of clusters are sampled, generalizations cannot always be made about the entire population.

Judgmental Sampling
Another non-statistical sampling method is judgmental sampling. In judgmental sampling, the person doing the sample uses his/her knowledge or experience to select the items to be sampled. For example, based on experience, an auditor may know which types of items are more apt to have nonconformances or which types of items have had problems in the past or which items are a higher risk to the organization. In another example, the acceptance tester might select test cases that exercise the most complex features, mission critical functions or most used sections of the software. From the above sampling methods, I have used simple random sampling.

SAMPLE DESIGN:
Sample element Sample size Sample media : : : past customers 100 questionnaire.

DATA COLLECTION:
The data collection pertaining to the study involves on the basis of primary data and secondary data.

PRIMARY DATA
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The primary data have been collected from customers by personal interview by selecting consumers belonging to business, professional, private and government employee.

SECONDARY DATA
The secondary data is undertaken only among the sales and service department within the organization and also collected from brochures of the company, books and various journals.

Data collection instrument:

The instrument used for data collection through Questionnaire. A questionnaire is simply a formalized set of questions for eliciting information.

1.Open-ended questions
Open-ended questions are questions to which there is not one definite answer. Open-ended questions may be a good way to break the ice with a survey, giving respondents an opportunity to answer in their own words.

2. Closed-ended questions
Closed-ended questions have a finite set of answers from which the respondent chooses. The benefit of closed-ended questions is that they are easy to standardize, and data gathered from closed-ended questions lend themselves to statistical analysis.

3. Multiple choice questions

When you want respondents to pick the best answer or answers from among all the possible options, consider writing a multiple-choice question. Multiplechoice questions are easy to lay out on a written survey.

4. Likert-scale question

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When you want to know respondents' feelings or attitudes about something, consider asking a Likert-scale question. The respondents must indicate how closely their feelings match the question or statement on a rating scale.

5.Dichotomous questions
A fixed-alternative question in which respondents are asked to indicate which of two alternative responses most closely corresponds to their position on a subject. E.g. Yes/No.

SAMPLING SIZE
Sample studies were selected from the sampling unit. The estimated total sample size is 100 in Chennai.

SAMPLE METHOD
In this study the samples were drawn using simple random method.

STATISTICAL TOOLS
The following statistical techniques have been used for the study 1. Percentage analysis 2. Chi-square test 3. Weighted average 4. Ranking analysis

Percentage analysis:

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Percentage method refers to a specified kind which is used in making comparison between two or more series of data. Percentages are based on descriptive relationship. It compares the relative items. Since the percentage reduces everything to a common base and thereby allow meaning comparison.
Percentage = Number of respondents x 100 Total no of respondents

CHI-SQUARE TEST:
The chi-square test, written as 2 test, is a useful measure of comparing experimentally obtained results with those expected theoretically and based on the hypothesis. It is used as a test statistics in testing a hypothesis that provides a set of theoretical frequencies with which observed frequencies are compared. In general chi-square test is applied to those problems in which we study whether the frequency with which a given event has occurred, is significantly different from the one as expected theoretically. The measure of chi-square enables us to find out the degree of discrepancy between observed frequencies and theoretical frequencies and thus to determine whether the discrepancy so obtained between observed frequencies and theoretical frequencies is due to error of sampling or due to chance.. The 2 test was first used in testing statistical hypothesis by Karl Pearson in the year 1900. It is defined as 2 = (Oi Ei)2/Ei Where Oi = observed frequency of ith event Ei = Expected frequency of ith event.

DEGREES OF FREEDOM
The number of data that are given in the form of a series of variables in a row or column or the number of frequencies that are put in cells in a contingency table, which can be calculated independently is called the degrees of freedom and is denoted by v.

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Case I If the data is given in the form of a series of variables in a row or column, then the degree of freedom = (number of items in the series) 1, i.e., v = n 1, where n is the number in the series in a row or column. Case II When the number of frequencies are put in cells in a contingency table, the degrees of freedom will be the product of (number of rows less one) and the (number of columns less one) i.e., v = (R-1) (C-1), where R is the number of rows and C is the number of columns.

Conditions for applying the CHI-SQUARE test

1. Each of the observations making up the samples for this test should be independent of each other. 2. The expected frequency of any item or cell should not be less than 5. If it is less than 5, then frequencies taking from the adjacent items or cells are pooled together in order to make it 5 or more than 3. The total number of observations used in this test must be large i. e., n 30. 4. This test is used only for drawing inferences by testing hypothesis. It cannot be used for estimation of parameter or any other value. 5. It is wholly dependent on the degrees of freedom. 6. The frequencies used in 2 test should be absolute and not relative in terms. 7. The observations collected for 2 test should be on random basis of sampling.

Working rule:

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Step 1: Set up the Null Hypothesis H0 : No association exists between the attributes. Alternate Hypothesis H1 : An association exists between the attributes. Step 2: Calculate the expected frequency E corresponding to each cell by the formula Eij = Ri * Cj/n Where, Ri = sum total of the row in which Eij is lying Cj = sum total of the columns in which Eij is lying n = total sample size. Step 3: Calculate 2 statistic by the formula 2 = (Oi Ei)2/Ei. The characteristics of this distribution are completely defined by the number of degrees of freedom v which is given by v = (R-1) (C-1) Where R = number of rows and C = number of columns in the contingency table. Step 4: Find from the table the value of 2 for a given value of the level of significance and for the degrees of freedom v, calculated in STEP 2 If no value for is mentioned, then table = 0.05. Step 5: Compare the computed value of 2 with the tabled value of 2 found in step 4. (a) If calculated value of 2 < tabulated value of 2 then accept null hypothesis H0. (b) If calculated value of 2 > tabulated value of 2 then reject null hypothesis H0 and accept the alternate hypothesis H1.

3. WEIGHTED AVERAGE METHOD:

The term weight stands for relative importance of different items. Weights have been assigned to various ranks. The weighted score is calculated by multiplying the number of respondents in a cell with their relative weights and the whole number is summed upto to give

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the weighted score for that factor. In this method weights are assigned to the items. The formula for computing weighted average is X= WX/ W Where X is weighted arithmetic mean X = the variable value i.e. x, x1, x2..xn W= weight attached to the variable value i.e. w1, w2 wn.

4.RANKING ANALYSIS

The ranking method is the method to analysis the data collected. It is done b ranking the corresponding number in each category in total of all the members. Tables and charts Various kinds of tables and charts are used to represent the survey findings and result. Charts like pie diagram, bar diagram are used.

Bar diagram
This diagram consists of a series of rectangular bars standing on a common base. The length of the bars is proportional to their magnitude. The comparison among the bars is based on lengths. There are three types of bar diagram. Simple bar diagram Multiple bar diagram Component bar diagram Pie diagram
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It is a circle divided into a number of sectors represents the values of the data. The area of the sectors is proportional to the values of the components. It is highly useful to know how the given data is distributed.

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

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CHAPTER 5 Summary of Findings

50% of the respondents are comes under the age group of 18-25 years and 32% of the respondents are comes under the age group between 26-35 years. 60% of the respondents belonging to the school students. 48% of the respondents are spending above Rs.4000 for buying cycles. Many of the respondents come to know Hercules through advertisements. From the study it is found Hercules cycles purchased highly by the customers. From the study it is found most of them purchased through cash From the study it is found customers are satisfied with the sales person explanation about the cycle features. From the study it is found customers are comfortable with the sales personnel.

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 Majority of the respondents feel the response time of sales person is quick. Many of the customers say the accessories provided to their choice.

32% of the respondents getting a new cycles on a period of 1-2 months, 20% of the respondents getting a new cycles on a period of 2-3 months and 48% of the respondents getting a new cycles on a period of 3-6 months. 75% of the respondents feel the service rate is inexpensive. Majority of the customers say the service advisors taking their problem promptly. Many of the customers say all the spare parts available in that showroom.
From the study it was found that majority of the customers are recommending buying the

product. From the study it was found that service delivery is done at the quicktime. Majority of the customers satisfied with the behavior of a service person. Majority of the customers satisfied with the service. 80% of the customers satisfied with the delivery facility. From the study it was found that majority of the customers getting feedback regarding the complaints. Many respondents interested to resale existing one with the new one in the company.
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 From the study 45% of children buying the 4 wheel cycles age between 5-15

SUGGESTIONS

The following suggestions can be made for better development of the company on titanium product:

1. They should work on capturing the faith of the existing customers. They should work on growing the existing customers. Better CRM software can help in growing the existing customers, increasing the customer base, acquiring new customers. 2. It should offer value added services which will help in customer satisfaction and maintain good relationship with customer. 3. Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customers product selection convenient 4. The product should offer extra benefits to the customers. 5. Customize CRM to a high degree so that they are able to handle a rapidly scaling call workload without any disruption in services and allow call centre agents to have an always connected view of the database. 6. Promotional campaign can be started area wise 7.Contract Sales Executive (CSE) should recommend right product to the right customer so as to ensure a high degree of satisfaction among the customer. 8.They need to give quick response to customer problems.
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CONCLUSION

For any business, successful Customer Relationship Management navigation is becoming increasingly important in today competitive business world. Customer expectations are always increasing, and business services must increase along with these expectations. CRM is the method through which businesses can connect with their customers and therefore serve them better. Businesses with successful CRM strategy and applications will notice a large increase in sales, customer satisfaction, and simply the overall success of the business. Our experience with CRM design suggests there is no-one-size fits approach. The CRM system needs to be tailored to the specific organizations objective and information needs. The manner in which feedback system is created and the ways in which results are used should be determined based on situational factors descriptive of the CRM organization, its customers and its operative environment. The CRM should still prove useful in supporting continuous improvement, but process driver will find paths to performance breakthroughs and dramatic results are blocked. Perhaps most importantly will be praise the organization receives from its employees as well as its customers

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APPENDIX Customer Relationship Management (CRM) system

Customer Relationship Management can be defined in simple terms as managing interactions with customers. This is becoming increasingly complex as we provide services across multiple delivery channels (face to face, telephone, internet etc). CRM, originally developed for the retail sector, is one of the ways in which we can make it easier for customers to deal with us. It can also help us offer quality services in a joined up and customer focused way. In the private sector, CRM technologies tend to focus on identifying, acquiring and retaining customers. They use sophisticated customer segmentation to enable them to target the highest value customers and/or increase customer satisfaction and/or reduce costs of sales. Low value customers may be directed to self service low cost delivery channels with a highly personalised face to face service available only to high value customers. Many companies use CRM systems to track and predict customer preferences and behaviour. In the public sector, there is a different focus because of our drive towards social inclusion and our wish to provide an equitable level of service to all citizens. Our customers must take certain services from us (e.g. a person cannot choose to pay council tax in a different area) but have a choice relating to other services. A Customer Relationship Management (CRM) System helps us to understand our customers and provide high quality, joined up and consistent services across a choice of delivery channels.

BIBILOGRAPHY
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WEBSITES:
1.http://en.wikipedia.org/wiki/Customer_relationship_management 2.http://www.zeelabs.com/CRM.htm 3.http://www.crmnewz.com/ 4 .http://www.crystaldecisions.com/ JOURNALS: 1.Bates, Martin D., Davis, Kendall B., Haynes, Douglas D., Reinventing IT services, McKinsey Quarterly, 2003, Issue 2 2.Binggeli, Urs, Gupta, Sanjay, de Pommes, Carlos, CRM in the air, McKinsey Quarterly, 2002, Issue 3 3.Child, Peter, Dennis, Robert J., Can marketing regain the personal touch?, McKinsey Quarterly, 1995,Issue 3 4. Ebner, Manuel, Hu, Arthur; Levitt, Daniel, McCrory, Jim, How to rescue CRM, McKinsey Quarterly, 2002 Special Edition: Technology Issue 4 5.Goff, Joshua, Harding, David, Shah, Rajesh, Singer, Marc, A new way to reach small businesses,McKinsey Quarterly, 1998, Issue 3

BOOKS:
1."The One to One Future: Building Relationships One Customer at a Time" by Don Peppers, Martha Rogers 2. "Essentials of CRM: A Guide to Customer Relationship Management" (Essentials Series) by Bryan Bergeron 3. "The Customer Differential: The Complete Guide to Implementing Customer Relationship Management" by Melinda Nykamp

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