See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/362888036
Customer Relationship Management Processes & FMCG Sector
Article · August 2022
CITATIONS READS
0 27
2 authors, including:
Sapna Dadwal
D PG Institute of Technology & Management , Gurugram ,Haryana , India
9 PUBLICATIONS 2 CITATIONS
SEE PROFILE
All content following this page was uploaded by Sapna Dadwal on 24 August 2022.
The user has requested enhancement of the downloaded file.
International Journal of Trend in Research and Development, Volume 5(1), ISSN 2394-9333
www.ijtrd.com
Customer Relationship Management Processes &
FMCG Sector
1
Dr. Sapna Dadwal and 2Ritu Malik,
1
Associate Professor, Management Department, CPJ College of Higher Studies & School of Law, Narela, Delhi, India
2
Research Scholar, Computer Science, University of Kota, Kota, Rajasthan, India
Abstract: CRM is built on the philosophy of relationship interaction of current and future customers. It involves using
marketing that aims to create, retain, develop and enhance technology to organize, automate, and
relationships with customers as well as to enhance the synchronize sales, marketing, customer service, and technical
customer lifetime value with the organization and support.”
organizations profitability. Dynamic & Cut throat competitive
“The purpose of adopting CRM practices and strategies is
business environment has forced Fast moving consumer goods
to improve marketing productivity, enhance customer
sector (FMCG) to implement such customer relationship
satisfaction resulting into enhanced sales. In CRM, marketing
management processes & practices which aims not only to
efficiency is achieved because cooperative and collaborative
attract, but also to retain their old customers. The goal is to
processes help in reducing transaction costs and overall
improve the customer experience with the organization so that
development costs for the company. Two important processes
it enhances satisfaction and loyalty which in turn will lead to
for CRM include proactive customer business development
increased profits. Customer relationship management is wide
and building partnering relationship with most important
business strategy adopted by most big organizations in FMCG
customers. These lead to superior value creation.”
sector as FMCG sector requires customer centric business
approach to support effective marketing, sales, service and “The success of CRM practices can be measured mostly by
process. The study analyses CRM initiatives in the FMCG behavioural indicators like their length of the relationship,
Industry as the competitive environment for FMCG customer satisfaction, frequency and by increase in sales and
organizations is changing rapidly. The FMCG industry has profit by firm through them. A good customer is a customer
emerged as a big component of the industrial sector in India who contributes a relatively large share as return to the
and has been constantly adding to the revenue of our country. organization within a certain period”. “According to
Implementation of CRM in Beverage sector enables the Galbreath and Rogers (1999, p 162) the definition of CRM
organizations to build and leverage their brand values by can be described as :Activities a business performs to identify,
ensuring that all trade promotions, campaigns and sales qualify, acquire, develop and retain increasingly loyal and
activities are executed with the right brand messages. profitable customers by delivering the right product or service,
to the right customer, through the right channel, at the right
Keywords: Customer Relationship Management (CRM) Fast
time and right cost. CRM integrates sales, marketing, service,
Moving consumer Goods Sector (FMCG)
enterprise resource planning and supply- chain management
I. INTRODUCTION functions through business process automation, technology
solutions, and information resources to maximize each
Today‟s world is different with its hyper competitive customer contact. CRM facilitates relationship among
environment, and enhancing relationship with customer is the enterprises, their customers, business partners, suppliers and
main issue faced by every organization. The rapid changes employees.”
have tremendously impacted the organizations worldwide.
Nowadays, the customer does not have to enter into the brick
structure to get serviced. He or she can get all the services right
at his or her doorstep on his or her desktop. Organizations can
reap profits only by increasing their services and enhancing
customer satisfaction in a manner, which was unthinkable a
decade ago. Consequently, today every organization has to
tailor their products and services to suit the customer needs
and even segment all the customers according to their need.
Hence the need to build and maintain one to one, life long
relationship with large number of customers has led the Figure 1 - Relationship with the Customer
emergence of Customer Relationship Management (CRM).
CRM is built on the philosophy of relationship marketing that “For any successful organization customers are the most
aims to create, retain, develop and enhance relationships with important assets . Many big organizations are implementing
customers as well as to enhance the customer lifetime value and finding out new practices of customer relationship
and organization profitability. The goal is to improve the management in managing the relations. CRM is a software
customer experience so that it enhances satisfaction and which gives a company valuable information at the most basic
loyalty which in turn will lead to increased profits. level like remembering the birthdays and names of the children
Customer Relationship Management of customers. This kind of information helps the employees of
“Customer relationship management is a business strategy the organization to give more value to make customers feel
adopted by most organizations and it requires customer centric very special. Business Call Centers are the biggest user of
business approach to support effective marketing, sales, CRM Software because they contact many customers at the
service and process. Customer Relationship same time and give feedback. The strategy of CRM is not to
Management (CRM) is a model for managing relationship and have only installation of this software but its starting point is to
IJTRD | Jan-Feb 2018
Available
[email protected] 262
International Journal of Trend in Research and Development, Volume 5(1), ISSN 2394-9333
www.ijtrd.com
consider employees at first, the employees must be well III. RESEARCH METHODOLOGY
trained to CRM theory so they could get maximize benefits by
Research is a systematic inquiry aimed at providing
using this tool”.
information to solve problems (cooper and Schindler,
“By using this technology, optimize interaction with customers 2002:14). Different requirements of information, availability
create a 360-degree view of customers to learn from past of time and need patterns have given way to the developments
interaction to the future trends (Chen and Popovich, 2003). of various types of research methods however need of any
360 degree view of customer is a person to person model research method remains the same –to get information. The
supported by technologies in prediction of customers buying reason behind the use of any method of research is to
patterns and price differentiation (Galbreath and Rogers, generation of optimum results. This study is based on primary
1999). The main idea of this model is that the best market data, which has been collected through questionnaire having
performance is achieved by having superior skills in statements to which respondents have to give their level of
understanding the customer in better way (Narver and Slater, satisfaction ranging between 1-5 level and agreement ranging
1990). In Figure -2 ,360 degree view of the customer can be from strongly agrees to strongly disagree. Since it was not
understood.” feasible to examine the entire universe the representative
sample were selected from Delhi & Gurugram. Respondents
were asked to fill questionnaire personally. The study is
confined to only three major multinational companies in the
FMCG sector
Objectives of the Study
As the title suggest the main objective of the present study is to
know the role of CRM in FMCG of India. Other some
affiliated objectives along with the broad objective are:
1. To know the impact of CRM processes& strategy in FMCG
Sector of India.
2. To assess factors of customer satisfaction.
Figure 2 - 360 degree view of the customer
Limitations
Source: Kotorov (2002) 1. The research findings are based entirely upon the sample
“The modern information technology allows larger survey conducted in Gurugram & Delhi and hence may not be
organizations to individualize their products and services as applicable directly and uniformly to other regions.
per the varying needs of the customers. CRM is the 2. As the sample is from Delhi and Gurugram therefore trend
establishment, development, maintenance and optimization of represent urban India in particular
long term mutually valuable relationships between consumers
Data Analysis
and the organizations. Successful CRM focuses on
understanding the needs and desires of the customers and is To know the perception of customers towards organization‟s
achieved by placing these needs at the heart of the business by CRM strategy they were asked to evaluate each factor first on
integrating them with the organization‟s strategy, people, statements ranging from not at all important to extremely
technology and business processes (Fox& Stead, 2001)” important and then they have to evaluate their satisfaction level
with each factor on 1-5 scale. The responses are analyzed by
II. LITERATURE REVIEW calculating the mean value and the results are presented in the
“According to Kotler and Keller (2006), The American subsequent discussion.
Marketing Association defines the Marketing as an
Profile of the Respondents
organizational function and a set of processes for creating,
communicating and delivering value to the customers and for Gender
managing customer relationships in ways that benefit the
Male 164
organization and its stakeholders‟‟.
Female 98
“Beckett-Camarata et al. (1998) have noted that managing Total 262
relationships with their customers (especially with employees,
channel partners and strategic alliance partners) was critical to
the firm‟s long-term success.” Customers Gender
“Yuan and Chang (2001) have presented a mixed-initiative
synthesized learning approach for better understanding of 37.40
customers and the provision of clues for improving customer
relationships based on different sources of web customer data.” 62.60
“While undertaking a study on the field of customer retention
and corporate profitability, Reichheld (1993) stated that the
role of customers is essential for corporate performance, so
that when relationships with customers endure, profits rise.” Mal
“Sheth and Parvatiyar (1995) found out in their research that e
the cost of retaining current clients is frequently much lower
than cost of acquiring new ones”. Figure 4
IJTRD | Jan-Feb 2018
Available
[email protected] 263
International Journal of Trend in Research and Development, Volume 5(1), ISSN 2394-9333
www.ijtrd.com
Monthly Income -
0.76 0.38 Customers
15.65
35.11
Less than
32.44 50,000
15.65
50,000-
1,00,000
Figure 2 & 3 are showing demographic profile and income group of the respondents
Table -1 Response of Respondents
Response of Respondents
Variables
Not at all imp. % Somewhat imp. % Imp. % Very Imp. % Ext. Imp. %
Order processing speed 4 1.5 1 0.4 121 46.6 124 47.3 11 4.2
Degree of ease in getting Product 1 0.4 5 1.9 95 36.1 140 53.4 10 3.8
Pricing of the products 5 1.9 11 4.2 122 46.6 100 38.1 24 9.2
Packaging 1 0.4 22 8.3 103 39.3 114 43.5 24 9.2
Quality of products 0 0 4 1.5 124 47.3 112 42.7 30 11.4
Personal attention 0 0 100 38.1 122 46.6 36 13.7 4 1.5
Customer Touch Points 0 0 11 4.2 157 59.9 88 33.6 10 3.8
Complaint Management 0 0 3 1.1 95 36.1 111 42.4 33 12.5
The Table-1 shows the variables of CRM in FMCG sector and [4] Rao, G.V. “What your Customers Really Want” in 'IRDA
their importance from the view point of respondents included Journal', Vol. II, No. 9, August 2004, pp. 18-20
in this study. This table shows that order processing speed [5] Mohamed Zairi, (2000) "Managing customer
,degree of ease in getting product are very important and dissatisfaction through effective complaints management
packaging ,quality of products personal attention and systems", The TQM Magazine, Vol. 12 Iss: 5, pp.331 –
customer touch points are important. 337
[6] Kuusik, Andres and Varblane, Urmas (2009) "How to
Findings
Avoid Customers Leaving: The Case of the Estonian
On the basis of the information collected in the questionnaire Telecommunication Industry", in „Baltic Journal of
and analysis made there of the following are findings are noted Management‟, Vol. 4 Iss: 1, pp.66 – 79
by researcher: [7] Chen I.J and K. Popovich (2003), “Understanding
customer relationship management (CRM): people,
• The study reveals order processing speed ,degree of ease in
process and technology‟, Business Process Management
getting product are very important and packaging ,quality of
Journal, Vol. 9, No. 5, pp. 672 – 88.
products personal attention and customer touch points are [8] Narver, J. and Slater, S. (1990), “The effect of a market
important. orientation on business profitability”, Journal of
• The study reveals that overall perception of customer is Marketing, Vol. 54, pp. 20-35.
above average toward CRM strategies except in strategies such [9] Fox, T., Stead, S. (2001), Customer Relationship
as Customers are valuable and Organization treats its Management: Delivering the Benefits, CRM (UK) and
customers as an important part of the organization. SECOR Consulting, New Malden, Vol. White Paper.
[10] Rowley J. E. (2002), “Reflections on customer knowledge
Bibliography management in e-business”, Qualitative Market Research:
[1] Galbreath, J & Rogers, T (1999), “Customer Relationship An International Journal, Vol. 5 No. 4, pp.268-280.
Leadership: a leadership and motivation model for the [11] Park C. H. and Kim Y.G. (2003), “A framework of
twenty-first century business”, The TQM Magazine, Vol. dynamic CRM: linking marketing with information
11, No. 3, pp. 161-171 strategy”, Business Process Management Journal, Vol. 9
[2] 16. Galbreath, Jeremy and Rogers, Tom, "Customer No. 5, pp.652-671.
Relationship Leadership: A Leadership and Motivation
Model for the Twenty-First Century Business" in 'The
TQM Magazine' Vol. 11, No. 3, pp. 161 – 171
[3] Borgen, Lawrence W., “Focus on Customers” in Best's
Review, Vol 102, Issue No. 7, pp. 49-51
IJTRD | Jan-Feb 2018
Available
[email protected] 264
View publication stats
