SUMMER TRAINING PROJECT REPORT(MBA-035) ON CUSTOMER SATISFACTION OF WATER Purifiers SYSTEM EUREKA FORBES LIMITED Submitted in Partial fulfilment of Master of Business Administration (MBA) Program: 2011-13 UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW SUBMITTED TO SUBMITTED BY Prof.( Dr.) D.N. Kakkar Dhananjay Prasad Singh HOD MBA 3 rd Sem MBA Department Roll No. 1105270016 IET, Lucknow 1
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SUMMER TRAINING PROJECT REPORT(MBA-035)
ON
CUSTOMER SATISFACTION OF WATER Purifiers SYSTEM
EUREKA FORBES LIMITED
Submitted in Partial fulfilment of
Master of Business Administration (MBA) Program: 2011-13
UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW
SUBMITTED TO SUBMITTED BY
Prof.( Dr.) D.N. Kakkar Dhananjay Prasad Singh
HOD MBA 3rd Sem
MBA Department Roll No. 1105270016
IET, Lucknow
INSTITUTE OF ENGINEERING AND TECHNOLOGY, LUCKNOW
1
ACKNOWELEDGEMENT
Any fruitful work is incomplete without a word of thanks to those involved directly or
indirectly in its completion. With my sincere gratitude I would like to thanks everyone who
has supported me in my project.
I am extremely grateful to Head of Department Prof. (Dr.) D.N.Kakkar Sir and
my Project Guide Mr. Ram Singh faculty of MBA DEPARTMENT, I.E.T LUCKNOW
who insight encouraged me to go beyond the scope of the project and this broadened me
learning on this project.
At the very outset I would express my sincere thanks and deep sense of gratitude to
personnel who helped me during the collection of data and gave me rare and valuable
guidance for the preparation of this report.
I take this opportunity to express my deep sense of gratitude and appreciation to my
project guide MR. SUDIP CHAKRABORTY (Divisional Head of Eureka Forbes). For
giving me the opportunity to do the project work under this prestigious company, and
guiding me for assistance, motivation, valuable advice, worthwhile discussion, technical
ideas, and important suggestions throughout the project.
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DECLARATION
I hereby declare that the project report entitled “customer satisfaction of water
purifiers system” for Eureka Forbes in partial fulfilment of requirements for the degree
of masters of business administration to Institute of Engineering and Technology,
Lucknow is my original work and not submitted for the award of any other degree,
diploma, fellowship or any other similar title or prizes.
Dhananjay Prasad Singh
(1105270016)
LUCKNOW
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Executive Summary
It is obvious that to remain competitive the corporate marketing strategy must aim to
create and retain a satisfied customer. This is possible only when the firm adds value to the
customer should perceive this customer. The customer should perceive this value to be
distinctively more than the firm’s rivals. When this happens, the firm gets a premium on its
product on emerges as a market leader.
This is true for all the products. Even though it is more visible in industrial products, in the
form of customer training, updating technology, at a low cost for the customer, on site
servicing to ensure zero down time in the customer manufacturing facilities etc in
consumer goods too, value in perceived when the product service the needs for which it is
brought.
I am trying to the study the Customer Satisfaction of Water Purifiers of Eureka Forbes
in the project. I hope my study will help Eureka Forbes.
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INSTITUTE OF ENGINEERING & TECHNOLOGY
SITAPUR ROAD, LUCKNOW-21
(A Constituent College of G.B.T.U.)
This is certified that Mr. Dhananjay Prasad Singh Roll No. 1105270016 of MBA IIIrd
(2011-13) sem. has completed his “Summer Training Project Report” on “Customer
Satisfaction of Water Purifiers System” requirement for the award of the degree of Master
of Business Administration (MBA).
Date: 18-11-2012
Prof. (Dr.) D.N. Kakkar
Head,
M.B.A. Department
I.E.T., Lucknow
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CONTENTS
Description Page No.
Prefatory items
Acknowledgement 1
Declaration 2
Executive Summary 3
Institute Certificate 4
Company certificate 5
Table of Content 6
INTRODUCTION TO MARKET RESEARCH 7-9
SURVICE QUALITY 10-16
CONSUMER BEHAVIOUR 17-18
MARKETING STRATEGIES ANALYSIS 18
COMPANY PROFILE 19-69
RESEARCH METHODOLOGY 77-79
DATA INTERPRETATION 80-85
CONCLUSION 86
SUGGESTIONS 87
FINDING & RECOMANDATION
LIMITATION 88
BIBLOGRAPHY 89
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INTRODUCTION
MARKET RESARCH
INTRODUCTION
Usually it is said that if marketing would be a train, than market research would be
the locomotive. In other words, market research should ideally be the starting point on any
marketing exercise. Conducting any marketing exercise- is it related to pricing, promotion
or distribution of a product or service. Without researching the potential market is as
sensible as setting out sell sand in the Sahara Desert.
Market research provides the answers to all the questions that generally occupy the minds
of marketers, at every stage of the marketing process.
Growth Trends in Market Research
India, fastest growing market research industry in the world, with growth rates at around 31 %
(2009-10). China is a distant second growing at20%. The size of the industry if of 595 crore,
but the industry is growing rapidly with a lot of business coming from overseas. The business
coming from overseas from overseas involves lot of outsourcing as cost advantages are
enormous; the processing of data is almost 50% cheaper in India than in developed countries.
The outsourcing business amounts to almost for the 8% industry and this figure is doubling in
value every year.
KEY PLAYERS IN MARKET RESEARCH
Dun Bradstreet
Information Resources Incorporation
NPD Group Information
A.C Nielson India Pvt. Ltd.
Martiz Research
NFO Research Incorporation
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ICMR ( India Council of Market Research)`
IMRB ( India Market Research Bureau)
SCOPE OF MARKET RESEARCH
Many people think that market research is just a consumer survey, asking
consumer about certain product or services. Though consumer research is an
integral part of marketing research, the latter’s quite a pervasive activity,
conveying the various types of marketing problems that confront the
marketing manager. There are various discussion confined to the market
research which are as follows-
Product Research
Sales Research
Customer Research
Pricing Research
Advertising Research
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Service Quality
Service quality is not easy to measure in a precise manner.The nature and
characteristics of services can have an impact on quality issues: There are many definitions
of Service quality.
The customer’s overall judgment of service quality can be an evaluation of both the
process and the outcome, compared with the customer’s own expectations and desired
benefits. This leads to an important idea in assessing quality from a services marketing
perspective: perceived service quality.
Perceived service quality represents the customer’s judgment of an organization’s
service based on their overall experience of the service. Understanding how customers
arrive at this judgment - that is to say, how they decide whether or not they are satisfied
with Eureka Forbes service - is very important for services quality management.
Determinate of Service Quality
1. Reliability: The ability to perform the promised service dependably and accurately.
2. Responsiveness: The willingness to help customer and to provide prompt service.
3. Assurance: The knowledge and courtesy of employees and their ability to convey
trust and confidence.
4. Empathy: The provision of caring, individualized attention to customers.
5. Tangibles: The appearance of physical facilities, equipment, personnel, and
communication material.
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Service Quality Model
Consumer
Marketer
Various studies have shown that well managed service
companies share the following common practices a strategic concept, a history of top
management commitment to quality, high standards, self-service technologies, systems, for
monitoring service performence and customer complaints, and an emphasis on customer
satisfaction.
New Service Development
Those products that are designed and introduce via the step in a structured planning
framework have a greater likelihood of ultimate success than those not developed within a
framework, the fact that services are intangible makes it even more imperative for a new
service development system to have four basic characteristic
1. It must be objective, not subjective.
2. It must be precise, not vague.
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Word of Mouth Communication
Personal needs
Perceived service
Expected Service
Past experience
Service delivery (including pre- and post-contacts)
External Communication to consumer
Service Quality specifications
Management perceptions of consumer expectations
3. It must be fact driven, not opinion driven.
4. It must be methodological, not philosophical.
Customer Focus
Quality begins with customer and also ends with them. Day’s when organization and
customers were treated as two different entities. The marketplace has become very
competitive, and it is no longer possible to run a business without strong focus on the
customer. Show this relationship.
Identification of Customer Group
A customer is “one who purchases a product or service”. There are two types of
customers internal and external.
An external customer exists outside the organization and buys its product and
services. Employees in the organization must know how their jobs enhance the total
satisfaction of the external customer. An internal customer is important as external
customer.
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Customer
Eureka Forbes Ltd.
Eureka Forbes Ltd.
Customer
External customers are people who ultimately consume the final product like the common
people. Internal customers include each employee working in the organization.
Customer Perception of Quality
One of the basic concepts of the service quality is continuous process improvement.
The concept implies that there is no acceptable quality level because the customer’s needs,
values and expectation are constantly changing and becoming more dependent. These are:
Performance
Feature
Service
Warranty
Price
Reputation
Customer Feedback
Is not a one time effort. It is an ongoing and active prbing of customer. Feedback enables
the organization to:
1) Discover customer dissatisfaction
2) Discover the relative priorities of quality
3) Compare its performance with competition
4) Identify customer needs.
5) Determine opportunities for improvement.
Comment Cards
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A low cost method of obtaining customer feedback involves a comment card, is
attached to the warranty card and include with the time of purchase. The intent of the card
is to get simple information such as name, address, age, occupation and the factors
Survey
This tool is in the form of a questionnaire where the customer is asked to furnish answer
relating to the quality of product and services. To make survey more useful must be
remember the following:
1. Customer are not the same
2. Survey raise the customer expectation
3. The more specific the question
4. Before the data is collected, you know how you want to analysis and use it.
Focus Groups
A focus groups is a research method use to find out what the customer are really
thinking. A group of customer is assembled in ameeting room to answer a series of
question. The moderator, understands clearly the type of information that must be elicited
and a plain to obtain it. Meetings are designed tofocus on the current, proposed and future
product and services.
Toll Free Telephone Number
Toll Free service Phone number 3988 3333 are an effective technique for
receiving complaints. Organisations can respond faster to the complaint without
incurring a lot of expenses. Such a number does not, however, reach those who
decide not to buy the product or thosee who discover some likeable features in a
competitor’s product. Toll free number are used by, at least, 50 percent of
organisation with sales of at least $10 million.
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Customer Visits
Visit to a customer’s place of business provides another way of gathering
information. An organization can pro-actively monitor the performance of its product
while it is in use. It can, thereby identify any specific problems. Senior managers should be
involved in these visits and not delegate them to someone else. However it is a good idea
to take along operating personnel so that they can see first and how the product is
performing.
Report Card
Another very effective tool is the report card. It is usually sent to each customer on a
quality basis. Data is analyzed to determine areas for improvement.
QCC Operation model
1. Problem Identification.
2. Problem Selection.
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Review and
follow up
Problem Identification Problem
Selection
Problem Analysis
Generate Alternative
Solution
Implementation
Present solution to
managementPrepare plan of action
Select best solution
3. Problem Analysis.
4. Generate Alternative Solution.
5. Select Best Solution.
6. Prepare Plan of action.
7. Present Solution of Management.
8. Implementation.
9. Review and follo- up.
CONSUMER BEHAVIOUR
In today’s challenging and competitive world of fast changing technology,
consumer tastes are also characterized by fast changes. So to survive in the market the
firms have to be in touch with the changing consumer preferences. Marketers have to
understand consumer behaviour and factors influencing in the buying behaviour of the
customers in order to be successful in this dynamic and competitive environment.
Meaning of consumer behaviour :
Consumer behaviour is the behaviour that the consumer display while searching
for, evaluating, purchasing and disposing of products and services that they expect will satisfy
their needs. Consumer behaviours are the study of how consumer makes their decisions to
spend their resources on consumption related items i.e. time, efforts and money. Study of
consumer behaviour proves the marketers an insight regarding the consumer preferences and
helps them in effective market segmentation and targeting. The importance of consumer
behaviour lies in the fact that behaviour can be understood and influenced to ensure a positive
purchase decision. So around understanding of consumer behaviour is necessary for long run
success of any marketing program. That’s why the marketing manager’s interest lies exactly in
understanding consumer behaviour to ensure that his marketing strategy results in purchase of
product.
DETERMINANTS OF CONSUMER BEHAVIOUR
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The study of consumer behaviour is quite complex, because of many variables involved
and their tendency to interest with and influences each other. The main determinants of
consumer behaviour are:
1. External Variables
2. Individual determinants of Consumer Behaviour
1. External Variables : The external environment is made up of various influences
such as:
Culture
Sub culture
Social class
Family
Reference groups
Personal factors such as age and life cycle, education, occupation, life style,
personality, etc.
These all are major determinants of consumer behaviour.
2. Individual Determinants of Consumer Behaviour: The individual determinants
of consumer behaviour are:
Personality and Self Concept
Motivation and involvement
Learning
Memory
Attitude
Marketing Strategies Analysis
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EUREKA FORBES is now looking to strengthen its position through a slew of new
launches. According to Mr. S.k. palekar, senior vice-president, marketing, Eureka Forbes
Ltd“although Eureka Forbes is the market leader in both the categories (with a market
share of over 80 percent in both the air purifier and vacuum cleaner segment), the
company’s new products will be targeted at different segments of people”.
For instance, the new aqua guard nova priced at Rs. 7600 will be targeted at people
who have already had an aqua guard in their house for more than a year (that is
approximately a million people). The product has electronic features such as an indicator
which will indicate when it is time to get the servicing done. Other launches on the anvil
include a softener model (for area which get hard water), an arsenice removal model, an
iron removal model, a fluoride removing model (for up and Gujarat) and aqua power,
which can run without electricity. A similar strategy is being put in place for vacuum
cleaner as well. However the company will not be venturing into new product segments.
Currently it has products in water and air purifier, vacuum cleaner and security system
segment. Says Mr. palekar, “we would like to focus on the segment we are present in an
strengthen our position their”.
For the communication strategy, the company is working on an online model through
which it will be able to interact with customers on the internet.
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COMPANY PROFILE
The Organization
Company’s Vision
Company’s Mission
Company’s Values
Symbol Of Quality
Euro Smile
Unmatched Certification
Board Of Directors
Company’s Products
Strategic Direction
Euro Helpline
Environment
People
Eureka Forbes-Relationship
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Eureka Family
Aqua check
New avenues
Company’s Dreams
Future Plan
Press centre
Company Analysis
EUREKA FORBES LIMITED —The Organization
Eureka Forbes is Rs billion multi- product multi- Channel Corporation which is a
part of the Shapoorji-Palings Group which was set up in 1982, to market health and
hygiene products to Indian consumers. It has evolved as a leader in domestic and industrial
water purification system, vacuum cleaners, air purifiers and security solution.
Eureka Forbes were the first to introduce domestic Water Purification System
(1984)- the “ Aqua guard ” model-as well as it revolutionized the Indian market by
introducing products like Home Cleaning System (1982), and Air Purification System
(1994). In order to introduce these previously unknown products too societal in which
nationwide commercial campaign were impossibility, the company had to pioneer another
innovation- directing sealing. The crops of suit- clad Eureka Forbes salesman were the first
such in the country and were tremendous success. They are now- Asia’s largest direct
selling organization with a 5000 strong direct sales force touching 1.25 million Indian
homes and adding 1,500 customers daily. Such was the success of Eureka Forbes that
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“Aquaguard” has now become a synonym for water purifier in India, like “Xerox” for
photocopying
“The promise was clear: To create a company that wouldn’t be about bricks, mortar
or sales graphs, but driven by something for more potent. Something that would
stand would stand the test of time: relationships”
DIRECT MARKETING
Eureka Forbes followed the globally “tried and tested direct selling route for
marketing its products in India, thus becoming one of the first direct selling companies in
India. Vacuum cleaners for water purifiers were rather new concepts for India consumer,
who had till then followed only the traditional methods of cleaning and filtering.
Therefore, Eureka Forbes had to first establish the concept of vacuum cleaners and water
purifiers in India before it could sell ‘Eureka’ is a brand. The company believed that its
core strength was its people. It employed dynamic, highly motivated individuals, called
‘Euro champs’ who projected the image of the friendly man from Eureka Forbes. Thus, for
the average Indian consumer, Eureka Forbes become synonymous with the smartly dressed
salesman who come to their houses and cleaned up things in a jiffy or showed how
air/water purifier were indispensable. Euro champs initially targeted the metros but soon
began visiting smaller cities and towns also commenting on the decision to diversity into
bottled water company sources said that it was only to strong then the core products by
capitalizing on their brand image. Goklaney said “In the water category, I will conduct
activities which strengthen my core products. How I do that and what I do is a matter of
strategy”. According to company sources, Eureka Forbes not only had the financial
strength, but also a strong network to sales executives to push its new products into the
market. The company’s decision to enter the retail business was primarily the result of its
launch of ‘Tronada’ vacuum cleaners and ‘Aquaflo’ water purifier in 1995. Eureka Forbes
had utilized the retail route for this range, mainly to cater to the industrial segment. Over
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the years, the retail business assumed greater significance and by 1999, around 5% of the
company’s sales came from the 2500- strong dealer network in1999. Eureka Forbes ltd.
The leading vacuum cleaner and water/air purifier equipment company announced a major
policy change that came as a surprise to the Indian corporate world. The company,
regarded as the pioneer of direct marketing in India, was planning to focus more on the
retailing business in the future. Commenting on this decision, & Goklaney, Marketing
Director, Eureka Forbes, Said “Direct sales permits us to exploit only the top end of the
market.” This move was in accordance with the company’s plans to increase the validity of
its products. The company planned to make its products available in retail outlets through
its dealer network, spread across 2,600 dealers.
Eureka Forbes – “Friend for Life”
Customers have always been the Centre of business for ELF; they strive to be in
close and constant touch with having also taken initiative to educate their customers to
change their perceptions and practices. According to the ELF officials “A sale is only the
beginning of the relationship “, however company makes specials efforts to let the bonds
of friendship endure through there service. Everyone at EFL strive hard to make a
customer there ‘Friend for life’. Eureka Forbes have rechristened there offices to CRS
(Customer Response Centre making them the hub of all customer centric efforts. A
significant part of their revenues comes from relationship marketing including service
contracts, spares and accessories sales, products up gradation and new references. As more
channels to reach out to customers were introduced, organization was restructured to
harmonize these multiple avenues of interaction and present a single face to the customer is
every one’s customer under this process of ‘convergence’
A 5 billion multi-product, multi-channel corporation.
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Operating in over 92 cities, with over 6000 employees.
Pioneers & leaders in water purification systems, vacuum cleaners & air
purifiers.
Pioneers in direct selling - Asia's largest direct selling organization - 5,000
strong direct sales force touches 1.25 million Indian homes, adding 1,500
customers daily.
Customer family now numbers over 5 million - enduring relationships as
'Friends for Life'.
Expanded channels that reach out to customers to include
o 3,800 strong dealer sales network;
o 58 distributor strong institutional sales network;
o A security systems division;
A strong service network backs up sales efforts - 3,200 company-trained
technicians make 10,000 kitchen visits daily, supported by call centres,
customer care representatives & mobile service vans.
The customer has always been at the centre of our business
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VISION
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MISSION
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VALUESP a g e | 26
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Service at your doorstep
India’s largest after-sales service network - over 650 Service Centres
3,000 trained technicians make 10,000 calls a day
Single number access - 24 hours in 8 major cities - 3988 33 33
Only genuine spare parts
Free routine check-ups and free service camps
Annual Maintenance Contracts - the largest in the country
Mobile service vans
A special service by Eureka Forbes to provide all the information about Eureka Forbes
products and services at one single number - available 24 hrs.*365days.
The Euro Help Line provides the following:
Gives complete information about products and services
Locations of Customer Response Centre or Sales offices, timings, contact persons,
etc.
Solutions to simple problems on the spot
A single point solution to customer queries or calls
Information on status of complaints and requirements
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Factories ISO 14000 and 9000 certified
Tested and certified by over 100 laboratories in India, US, UK and South Africa.
Certifications include those from the highly reputed Bureau of Indian Standards (BIS),
University of Minnesota; University of Pretoria, South Africa; Water Quality Certificate -
USA; WQC - Thames Water Centre - USA; University of Sunderland - England.
ISI (Indian Standards Institute) certification
IMA (Indian Medical Association endorsement)
Incorporates prestigious International Water Quality Association (WQA) certified carbon
block that removes pesticides CE certification for the unmatched safety of products
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BOARD OF DIRECTORS
Mr. Shapoor. P. Mistry
Mr. K.C. Mehra
Mr. S.L. Goklaney
Mr. D.E Udwadia
Mr. J.C Chopra
Mr. N.D Khurody
Mr. C.G Shah
Mr. Ashok Bharat
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EUREKA FORBS INSTITUTE OF ENVIRONMENT
It is a young and unique institute that was started in the year 2000.
To gain quick visibility it was launch through TV. The main agenda behind starting this
institute was to give knowledge about the various benefits that exceeds cost on the issue
related to “pollution watch”.
As every journey has its destination, the ultimate destination of eureka Forbes institute of
environments to be an institution that has a life of its own, its own vision, mission and
philosophy: its own set of committed core team workers and donor friends.
By own face and recognition; it means to gain medias and public credibility by aligning its
activities mainly to its cause, distance itself from commercial work and other related
causes and to build a strong track record of social contribution and activities related to such
cause alignment.
The institute has built a strong mission, which says; to promote an awareness of the
benefits of conserving and maintaining the quality of our natural water and air resources.
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Eureka forbs Business Policies
The customer is the sole focus of our business.
We constantly endeavour towards customer satisfaction by delivering products and
services of the best value and quality.
We strive to honour our commitments, implied, to both, our internal and external
customer.
We stress on integrity, transparency and consistency in all our dealings.
We always strive to have a trusting, mutually beneficial and long-lasting
relationship with our business associates.
We seek to maintain a warm, positive and friendly work.
We empower people at appropriate level to achieve their goal.
We recognize and reward merit and performance.
We strive to make the organization a responsible corporate citizen.
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PRODUCT CATEGORIES OF EFL
Eureka Forbes Limited has been the pioneer in the field of Water Purifications Systems,
Home Cleaning Systems and Air Purification systems in India.
Eureka Forbes Ltd. revolutionized the Indian market by introducing products like Home
Cleaning System (1982), Water Purification System (1984) and Air Purification System
(1994).
The following are the basic products of Eureka Forbes Ltd., which has always promised to
provide safe and healthy living.
1. Water Purification System.
2. Air Purification System.
3. Home Cleaning System (Vacuum Cleaners)
4. Home Security System.
5. Industrial Solutions (Industrial Water Purifiers)
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Water Purification System
Specialists in 5 water technologies
Over 20 products available and million units sold
Addressing 17 diverse water conditions
World's largest manufacturer of Ultra Violet based water purification systems
Over 71 million litres of Aquaguard water is consumed daily.
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Home Cleaning System (Vacuum Cleaners)
Dusting, sweeping & swabbing does not get rid of fine dust
Floats in the air & settles on pillows, mattresses, furniture, durries & even soft toys
Dust mites cause allergies like fatigue, runny noses, itches and even severe asthma
Ordinary cleaning does not get rid of dust mites - only powerful, thorough cleaning
with a vacuum cleaner can
Infinitely superior than conventional cleaning methods and easy-to-use.
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Air Purification System
Indoor air more polluted than the air outside
Causes maladies like allergies headaches, nausea, physical aches Asthma and