Ford Project

Make Every Day Exciting

A PROJECT REPORT ON

CUSTOMER RELATIONSHIP MANAGEMENTAT

FORTUNE FORD MOTORS SOMAJIGUDA, HYDERABAD.

BY

MOHAMMED HASSANUDDIN

STUDENT OF BBA(2009-11)

AMITY GLOBAL BUSINESS SCHOOL(HYD)

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INDEX OF CONTENTS

CHAPTER 1: -

1.1 - OBJECTIVES OF THE STUDY1.2 - SCOPE 1.3 - NEED OF THE STUDY

CHAPTER 2: -

INTRODUCTION

2.1 - Introduction to MARKETING

CHAPTER 3: -

BRIEF DESCRIPTION OF THE ORGANISATION

3.1 - About Ford Company

3.2 - Company profile of Fortune Ford Motors

3.3 - History of Ford in INDIA

3.4 - Fortune Ford products

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CHAPTER 4: -

THEORETICAL PERSPECTIVE

-Introduction To CRM

-Concept & Definition

-Benefits of CRM

-CRM across Company Functions

-Concept of Relationship Management

-Potential Returns of CRM systems

-Benefits to Organisation

-Benefits to Customer

-Marketing Strategy

-Strategic Market Segmentation

-Marketing Strategies of Ford

CHAPTER 5: -

RESEARCH METHODOLOGY

CHAPTER 6: -

ANALYSIS & INTERPRETATION

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CHAPTER 7: -

FINDINGS & SUGGESTIONS

CHAPTER 8: -

LIMITATIONS OF THE STUDY

APPENDIX

-QUESTIONNAIRE

-BIBILOGRAPHY

INTRODUCTION:

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CUSTOMER RELATIONSHIP MANAGEMENT

A customer is the most important person ever in this office….. In person or by mail

A customer is not dependent on us…… we are dependent on him.

A customer is not someone to argue or match wits with. Nobody ever won an

argument with a customer.

A customer is a person who brings us his wants. It is our job to handle then profitably

to him and to ourselves.

Customer relation as a tool for identifying way to create more customer

value & satisfaction. Every firm is a synthesis of activities that are performed to

design, produce, and market, deliver, and support its product.

Many companies are intent on developing stronger bonds with their

customers-called Customer Relationship Management (CRM) . This is the process of

managing detailed information about individual customer and carefully managing all

the customers "touch points" with the aim of maximizing customer loyalty...

A successful business must have satisfied customers. We will treat them as

we would wish to be treated ourselves. They require an excellent service and our

work ust therefore be undertaken with our customers as the key focus, providing

better products and services then our competitors. We will measure the quality of

service and look for continual improvements.

The aim of Customer Relationship Management (CRM) is to produce high

customer equity. Customer equity is the total of the discounted lifetime values of all

of the firm's customers. Clearly, the more loyal the customer, the higher the customer

equity, rust, Zenithal, and Lemon distinguish three drivers of customer equity; value

equity, brand equity, and relationship equity

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CHAPTER 1

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OBJECTIVES OF THE STUDYThe main objective is to determine the current relationship management level of the

customers with all aspects in regard to “Fortune Ford Motors”.

1.1 Objectives in Detail:

01. To determine current relationship management level of the customers with

all aspects of their delivery.

02. To determine key dissatisfaction areas, if any.

03. To identify different customers needs in regard to a Fortune Ford Motor cars

services.

04. To identify what type of marketing strategy is suitable for the company to

reach the targeted customers.

05. To enable the company's customer care department to handle the customer's

queries more effectively and efficiently.

06. To enable the sales team to promote sales effectively through maintaining

Customer relation.

07. To generate new leads through customer satisfaction.

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1.2 SCOPE OF THE STUDY :

The scope of the study is to identify the customer relationship management level

towards "Fortune Ford Motors". The study was conducted for a period of 45 days

covering various places in Hyderabad & Secunderabad city. Primary data was

collected from customers. Secondary data was collected from company manuals,

magazines and websites and so on, the study gathers information about the customer's

relation maintaining in the car level in regard to Quality of Service, Safety Tips , fuel

saving tips, driving tips etc.., customer care service and other values added services

provided by the company.

It is aimed at enlightening the company about different steps to be taken up to increase the share of "Fortune Ford Motors" with regard other competitors and also to make the company to provide better customer services

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1.3 NEED FOR THE STUDY:

Customer relationship management plays a major role for the growth of the company

in the modern market scenario.

In the case of "Fortune Ford Motors" cars industry due to different

network services providers there is a huge competition, to compete with the

competition customer's relation plays a major role for any company.

The purpose of customer relation is not only for retaining the customers

but also attracting new customers, increasing the sales and maintenance of brand

awareness.

Customer perceptions attitudes and views regarding the products and

services, along with suggestions assume greater importance in the light of new entries

and potential competitors, this study is an attempt that directs to facilitate the

management in marketing their future decisions in promoting and creating a good

image in the society.

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CHAPTER 2

INTRODUCTION TO MARKETING

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Markets:

The concepts of exchange and relationships lead to the concept of a market. A

market is the set of actual and potential buyers of a product. These buyers share a

particular need or want that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer

relationships. However, creating these relationships takes work. Sellers must search

for buyers, identify must first create a need-satisfying marketing offer (product). It

must decide how much it will charge for the offer (price) and how it will make the

offer available target consumers (place). Finally, it must communicate with the target

customers about the offer and persuade them of its merits (promotion).

Marketing:

Marketing is the business function that identifies customer needs and wants.

Creating customer value and satisfaction are the heart of modern marketing thinking

and practice. Marketing is the delivery of customer satisfaction at a profit.

Many people think of marketing only as

selling & advertising. But selling & advertising are

only the tip of marketing. Marketing means managing

markets to bring about exchanges and relationships for

the purpose of creating value and satisfying needs & wants.

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Today, marketing must be understood not in the old sense of making a sale –

‘’telling and selling’’ – but in the new sense of satisfying customer needs. If the

marketer does a good job of understanding consumer needs; develops products that

provide superior value; and prices, distributes, and promotes them effectively, these

products will sell very easily. Thus, selling and advertising are only part of a larger

‘’marketing mix’’ – a set of marketing tools that work together to satisfy customer

needs and build customer relationships.

Broadly defined, marketing is a social and managerial process by which

individuals and groups obtain what they need and want through creating and

exchanging value with others. In a narrower business context, marketing involves

building profitable, value – laden exchange relationships with customers. Hence, we

define marketing as the process by which companies create value for customers and

build strong relationships in order to capture value from customers in return.

Customer Needs, Wants, and Demands:

The most basic concept underlying marketing is that of human needs. Human needs

are states of felt deprivation. They include basic physical needs for food, clothing,

warmth, and safety: social needs for belonging and affection: and individual needs for

knowledge and self – expression. These needs were not created by marketers: they

are a basic part of the human makeup.

Wants are the form human needs take as they are shaped by culture and

individual personality. An American needs food but wants a Big Mac, French fries,

and a soft drink. A person in Mauritius needs food but wants a mango. Rice, lentils,

and beans. Wants are shaped by buying power, wants become demands. Given their

wants and resources, people demand products with benefits that add up to the most

value and satisfaction.

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Marketing Management:

The analysis, planning, implementation and control of programs design to

create, build and maintain beneficial exchanges with target buyers for the purpose of

achieving organizational objectives.

Production concept:

Management should focus on improving production and distribution efficiency.

When the demand for a product exceeds the supply, management should looks for ways to

increase production. When the products cost is too high, improved productivity is needed to

bring it down.

Product concept:

Consumer will favour products that offer the most quality, performance and

innovative features. Thus, an organization should devote energy to making continues

product improvements.

Selling concept:

Consumers will not buy enough of the organizations products unless its under

takes large-scale selling and promotion effort.

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MARKETING MANAGEMENT CONCEPTS

Production Production Product Product SellingSelling MarketingMarketing SocietalSocietal


Selling:

Selling is also important function of marketing. It is the process where by

goods and services finally flow to the customers who need them. Selling focuses on

the needs of the seller.

Marketing concept:

The marketing concept holds that achieving organizational goals depends on

determining the needs and wants of target markets and delivering the desired

satisfaction more effectively and efficiently than to competitors.

Marketing means obtaining customers. Marketing focuses on the needs of the

purchaser. Makes profits by creating long term customer relationships based on

customer value and satisfaction.

Societal concept:

The societal marketing concept holds that the organization

should determine the needs, wants and interests of target markets.

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Existing Selling & Profits through

Factory products promoting sales volume

Customer Integrated Profits through

Market needs marketing customer satisfaction

Society

(Human welfare)

Consumers

(Want satisfaction)

Company

(Profits)


ProductProduct variety

Quality & Design

Features

Brand name

Packaging & Services

Warranties & Returns

ProductProduct variety

Quality & Design

Features

Brand name

Packaging & Services

Warranties & Returns

PriceList price

Discounts

Allowances

Payment period

Credit terms

PriceList price

Discounts

Allowances

Payment period

Credit terms

PlaceChannels

Coverage & Locations

Assortments

Inventory

Transportations

Logistics

PlaceChannels

Coverage & Locations

Assortments

Inventory

Transportations

Logistics

PromotionAdvertising

Personal selling

Sales promotion

Public relations

PromotionAdvertising

Personal selling

Sales promotion

Public relations

Target

Customers

Target

Customers

Marketing Mix (4 Ps):

Marketing mix includes the set of controllable, tactical marketing tools in the

target marke.

Product means the goods and services combination the company offer

to the target market. Ex: Nuts & Bolts, Spark plugs, Pens & Pencils

etc.

Price is the amount of money customers have to pay to obtain the

product.

Place includes company activities that make the product available to

target consumers

Promotion means activities that communicate the merits of the product

and persuade target customers to buy it. Ford spends money each year

for advertising to tell consumer about the company and its product.

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Marketing effort / Marketing control:

The company wants to design and put in to action the marketing mix that will

best achieves its objectives in its target markets.

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PlanningDevelop strategic

plans

Develop marketing plans

PlanningDevelop strategic

plans

Develop marketing plans

Implementation

Carry out plans

( The company turns the plans

in to action )

Implementation

Carry out plans

( The company turns the plans

in to action )

ControlMeasure results

Evaluate results

Take corrective action

ControlMeasure results

Evaluate results

Take corrective action

Analysis


CUSTOMER VALUE & SATISFACTION

Customer value and satisfaction:

Consumers usually face a broad array of products and services that might satisfy

a given need. How do they choose among these many marketing offers? Customers

form expectations about the value and satisfaction that various marketing offers will

deliver and buy accordingly. Satisfied customers buy again and tell others about their

good experiences. Dissatisfied customers often switch to competitors and disparage

the product to others.

Marketers must be careful to set the right level of expectation. If they set

expectations too low, they may satisfy those who buy but fail to attract enough

buyers. If they raise expectations too high, buyers will be disappointed. Customers

value and customers satisfaction are key building blocks for developing and managing

customer relationships.

Satisfaction is defined as….

“a persons feelings of pleasure or disappointment resulting from comparing a

product’s perceived performance (or outcome) in relation to his or her expectations”.

Customer satisfaction depends on a products perceived performance in

delivering value relative to a buyers expectations. If the products performance falls

short of the customers expectations, the buyer is dissatisfied. If performance matches

expectations, the buyer is satisfied. If performance exceeds expectations, the buyer is

delighted.

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Customer value and satisfaction


CHAPTER 3

BRIEF DESCRIPTION OF THE

ORGANISATION

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3.1 ABOUT FORD COMPANY

Ford Motor Company is the world's second largest automaker with approximately

350,000 employees, and operating in more than 200 markets on six continents. Its

automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury

and Volvo. Its automotive-related services include Ford Credit, Hertz and Quality Care.

The company's world headquarters is in Dearborn, Michigan. Ford Motor Company officially

celebrated its 100th anniversary on June 16, 2003. For additional information visit the site

below.

Overview:

Ford Motor Company, a global automotive industry leader based in Dearborn,

Mich., manufactures and distributes automobiles in 200 markets across six continents.

With about 300,000 employees and 108 plants worldwide, the company’s core and

affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mazda,

Mercury and Volvo. Its automotive-related services include Ford Motor Credit

Company.

Vehicle Brands:

Automotive Service Brands:

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The very first member of the Ford Motor Company family of brands, Ford offers

distinctively designed and affordable vehicles for the world's varying lifestyles. From

the Model T—the car that first brought driving to the masses, to more recent

favourites like the Mustang in the US, the Mondeo in Europe, the Eco Sport in South

America and the Territory in Asia, Ford vehicles have been among the world's most

popular cars, trucks and SUV's.

Brief History:

Ford Motor Company began with just Ford vehicles in a wagon shop in

Michigan. To fully understand the essence of this founding member of the family

brands, just look at the early history of Ford Motor Company, from Henry Ford's

earliest automotive experiments to the Models A, T, and beyond.

While value for money has always been a top priority in developing Ford

vehicles, that concern has never compromised quality or the pursuit of quality

solutions. Ford has always strived to meet consumers' real-life requirements—from

smaller cars for Europeans, to "smarter" cars for the ever-changing environment.

One of the most essential ingredients for a successful business is communication.

We strive to keep the public well informed about us, our products, financial progress, and

public policy.

Products and Customers:

We will offer excellent products and services. Ford Motor Company's

flexible manufacturing systems have the ability to build up to eight different models

off two independent platforms. The flexible systems standardize the assembly

process, improve productivity, eliminate waste and boost quality. Developing and

introducing products with better environmental performance.

Fast Facts:

Focusing on customer satisfaction and loyalty and keeping our promises

Using our understanding of the market to anticipate customer needs

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Delivering innovative products and services that offer high value in terms of

function, price, quality, safety and environmental performance

Progress Since Our Last Report

Around the world, our markets are changing. High fuel prices are accelerating interest in

vehicles with good fuel economy. Markets are expanding in rapidly growing economies and

remain highly competitive everywhere we operate.

To meet and anticipate our customers' needs, we are focusing on:

Introducing new products. Globally, we introduced 40 all-new, or substantially

new, products in 2004, more than in any year in the Company's history.

Raising the bar on quality. In J.D. Power's Initial Quality Study, our 2004 U.S.

vehicles continued a positive trend by improving more than 6 percent

compared to 2003.

Implementing shared architectures and technologies and flexible

manufacturing. By the end of the decade, 75 percent of our North American

and all of our European plants will be flexible and able to produce multiple

vehicle models.

Expanding the range of products available in high-growth markets.

Bill Ford – Setting the Vision

"At Ford Motor Company, we have made sustainability

a long-term strategic business priority. The reason is

simple: we are a 100-year-old company, and I want

us to become a 200-year-old company. Sustainability

is about ensuring that our business is innovative,

competitive and profitable in a world that is

facing major environmental and social changes."

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Bill FordChairman & CEO,

Ford Motor Company


Our Company faces urgent short-term challenges that we have described

in our Annual Report and will discuss in this report. We're addressing these

challenges by accelerating our business plans to strengthen our balance sheet,

optimize our global footprint and deliver more great products faster. That includes

eliminating excess capacity, reducing the size of our workforce while improving its

capability, increasing our investments in fast-growing markets and speeding up our

product development process.

Our success as a business in the near term is a prerequisite to any strategy for

future growth. However, our responsibility to our customers, shareholders, employees

and communities includes preparing for the future without delay. While nobody can

confidently predict what the world will look like a few decades from now, it is clear

that strong, profitable companies going forward will be the ones that strive for

sustainable use of environmental and social capital in a rapidly growing global

economy.

The business case is clear:

Reduced use of non-renewable resources will help us cut material and

operating cost and avoid the growing volatility of commodity prices.

Society's growing concern for environmental issues is creating growth markets for

innovative "green" products and technologies that generate new sources of revenue.

Increasingly stringent government regulations around the world will favour

companies that are best positioned to address underlying environmental and social

priorities.

Global climate change is one of the most urgent examples. At Ford, we have

long acknowledged the importance of climate change. We recognize its potential

impact on economic as well as environmental and social systems. Customers,

investors and policy makers are increasingly focused on the need to burn less fossil

fuel and emit fewer greenhouse gases. The issue will become even more challenging

as growing markets like India and China expand their own needs for energy.

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Climate change is also an example of a complex 21st-century challenge that

requires a systemic social, political, technological and business solution. Stabilizing

the concentration of greenhouse gases in

our atmosphere while maintaining economic growth demands corporate and political

leadership and dialogue across traditional boundaries. It requires global coordination

of technologies, government policies, markets and infrastructures.

Within our Company, climate change, and the underlying issue of fuel

economy, pose a particular challenge. In North America, the fuel economy of our

vehicles is competitive and in some cases even best-in-class within their respective

segments. However, the market-leading popularity of our trucks and SUVs results in a

low average fuel economy from our fleet as a whole. Across the industry, fuel

efficiency improvements compete for investment with other product features and

innovations, overall affordability and pressing obligations like safety, health care and

pension costs.

Even as we grapple with this issue, we continue to set the pace in our industry

on important environmental and social priorities, such as reducing water consumption,

conserving energy, recycling and reusing non-renewable materials, eliminating toxic

materials, establishing codes of working conditions and safety in our plants and

supply chain, and addressing public health issues from HIV/AIDS to cancer to

juvenile diabetes. You will find all these issues and more addressed in this report.

Looming on the horizon are additional challenges as well as opportunities. The

sheer scale of our industry is enormous. In the United States, the auto industry is

responsible for 6.6 million jobs, which is about 5 percent of all private-sector jobs and

nearly 4 percent of Gross Domestic Product. No other single industry is more linked

to U.S. manufacturing strength or generates more retail business and employment.

The U.S. auto industry purchases 60 percent of all the rubber and about 30 percent of

all the aluminium, iron and stainless steel used in the United States.

The 61 million new cars and trucks sold globally last year provide personal

mobility and economic opportunity to an increasingly interdependent population.

Some people believe that it's impossible to provide personal transportation without

imposing costs on the environment and society, and that it's impossible for business to

23


address environmental and social needs without breaching its fiduciary responsibility

to shareholders.

At Ford, we are determined that these priorities do not need to conflict with

one another, and that the path to profitable growth in our industry may increasingly lie

in finding ways to generate new revenue by reconciling these issues, not just trading

them off against one another. We describe such thinking in this report, our first

organized under a sustainability (rather than corporate citizenship) title.

Ford joined seven other automotive companies, three energy companies and

an automotive supplier in a study sponsored by the World Business Council for

Sustainable Development (WBCSD) entitled "Mobility 2030: Meeting the Challenges

to Sustainability," which was published last year. In addition to climate change, air

pollution and road safety, the report called out the growing importance of noise,

congestion and the mobility "divide" between the rich and the economically and

socially disadvantaged as critical issues on the road to sustainable mobility.

These issues become even more acute as hundreds of millions of people

around the world join the global economic marketplace and claim access to the

lifestyle, including personal mobility, long enjoyed by the populations of developed

markets.

We know that smart competitors are racing to be first with solutions for the

21st century, and we want to lead that race.

Our work is, therefore, urgent, and it is proceeding along three paths:

Integrated strategy:

Since we see sustainability as core to our business success, we are working to

develop metrics, targets and milestones to be explicitly integrated into our business

plan, alongside the fundamentals of quality, cost and revenue, products and

relationships. We're also working on the difficult challenge of reconciling short-term

imperatives to deliver financial returns with the investments required to realize long-

term opportunities.

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Technological innovation:

We have developed an organization and governance structure – the

Sustainable Mobility Group – dedicated to investing in and driving new mobility

technologies, including hybrids, clean diesels, hydrogen internal-combustion engines

and fuel cells. We're conducting this breakthrough work, too, on nearer-term vehicle

technologies, such as alternative fuels and advanced gasoline engines. We also

continue to work on new developments in the way we build our cars and trucks, for

example through flexible manufacturing techniques.

External dialogue:

New business challenges require new thinking, which in turn requires new

relationships in the communities in which we operate. The history of industry is

littered with the remains of companies that rigidly defended their world view through

their policies, strategies, marketing and relationships. On issues of broad public

concern, efforts to increase mutual understanding are usually more productive than an

adversarial defence of special interests. That's why engagement with policy makers,

advocacy groups, consumers, investors, business partners and employees is a

cornerstone of our drive to realize our vision. Already, in developing

our approaches to human rights and climate change, we have seen the value of

listening, learning and acting in concert with thoughtful advocates.

I'm proud of the steps we have taken so far – most notably the introduction of

the Escape Hybrid, the world's first hybrid SUV; the reinvention of the Rouge

facilities as a model of 21st-century sustainable manufacturing; our industry-leading

actions in human rights; and the response of our employees to human needs – notably

in Southeast Asia after the December 26 tsunami and in the U.S. Gulf Coast after

Hurricane Katrina.

I also recognize that we have a lot more to do to secure the sustainability of

our business over the long term. I look forward to reporting our progress in future

reports .

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Bill FordChairman and CEO

Overview:

Our industry, the business environment and societal expectations continue to

evolve, and so does our reporting. Find out how we are managing sustainability as a

strategic priority within the business.

Our Impacts:

As a major multinational enterprise, our activities have far-reaching impacts

on environmental, social and economic systems. Read about our analysis and

prioritization of these issues and impacts.

Charles Griffith Auto Projector Director,

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"The challenge for us now is to reconcile our need to respond to mainstream investors with our long-term sustainability goals."

Madelyn Hochstein President and Founder, DYG Inc.

Marv Adams Senior Vice PresidentCorporate Strategy and

Chief Information Office

Barbara GasperVice PresidentInvestor Relations

http://www.ford.com/en/company/about/sustainability/report/topicsForumHochstein.htm

http://www.ford.com/en/company/about/sustainability/report/topicsForumAdams.htm

http://www.ford.com/en/company/about/sustainability/report/topicsForumGriffith.htm

http://www.ford.com/en/company/about/sustainability/report/impacts.htm

http://www.ford.com/en/company/about/sustainability/report/overview.htm


3.2 FORTUNE FORD PROFILE:

Fortune Ford is an authorized dealer for Ford India Limited, who are one of the leading

manufacturers of top quality cars in India, with many variants in the offering.

Fortune Ford is a 50:50% Joint Venture set up between two well known and reputed

families in Hyderabad, the Modis and the Babu Khans. Fortune Ford is a blend of

experience and youth. The experience and good will that Mr. Misbahuddin Babu

Khan and Mr. Pramod Modi enjoy blend very well with the youth and energy of the

youngsters Bashir, Ashish, Nirav and Siraj to make Fortune Ford a truly world class

Ford Dealership.

Fortune Ford markets and services the recently launched truly European Ford Fiesta,

the ever-popular Ford Ikon Flair , the No non-sense car Ford Fusion and the macho

SUV the Ford Endeavour through its sales and service outlets at Hyderabad. The sales

outlet is located strategically at Somajiguda next to Eanadu. We have two service

centers, one at Chapel Road, Abids opposite Stanley College and other one at

Fathebagh, Santhnagar. These centrally located outlets provide convenient and easy

access to both the proud owners as well as prospective buyers.The workforce at

Fortune Ford is committed to excellence in serving all esteemed customers.

The Sales Team is made up of dedicated showroom and field executives who are

professionally trained by Ford India Limited. They are adept at guiding the customer through

the entire sales process right from assisting in the choice of model, colour and features to

lending a helping hand in providing attractive buyback options and also arranging finance at

competitive rates.

The Service Centre is armed with the state-of-the art equipment and is in-line with Ford's

exacting Global standards. The service team is technically qualified and trained to analyze

and provide solutions adhering to Quality Care, in order to satisfy even the most demanding

customers.

The Fortune Ford dealership maintains a high standard of excellence in sales and services by

sending its personnel for training on a regular basis to Ford India Limited, to update them

with the latest technological advances in the automotive sphere.

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SHOWROOM

We have 5000 sft centrally air conditioned showroom, located in the heart of the

city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This

makes convenient for almost every one residing in and around Hyderabad and

Secunderabad.

The facilities offered from the showroom are :

Very easy finance facility with in-house finance team to cater to your every car

finance requirements. All the leading finance counters are available like ICICI, HDFC,

KOTAK, SUNDARAM, SBI, etc.

Exchange offer for any of your used car. Free spot evaluation for any usedcar.

Professionally trained and courteous sales staff to take care of every relevant needs

of the customers.

Ford preferred insurance for cashless transactions in the event of claims. Special

offer on insurance renewals. You can also renew your insurance by just making call

to our service marketing help line 9848885962.

Full range of Ford cars with all colors and models to choose from.

A good stock of Ford genunine accessories to make your Ford ownership more

delightful and safe.

A well maintained fleet of test drive cars to give you the feel and experience the

drive dynamics on actual driving conditions before take the purchase decisions. You

can call our sales help line for test drive or fill the on-line test drive requisition form.

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SERVICE CENTERS

We believe that a customer is for life and it will be our endeavor to make your Ford

ownership experience truly cherish able. We will make all efforts in meeting this

commitment and will always welcome your suggestions and advice to achieve

excellence in everything we do.

We have two workshops strategically located at Sanathnagar, Abids and Tolichowki.

Based on your convenience, you can choose any of these two facilities to get your car

serviced.

ABIDS SERVICE CENTER

# 5-9-171,Chapel Road, Abids, Hyd – 500 001.

Telephone: 040-66848384

Service Appointment No. 9848885881

e-mail: [email protected]

SANATHNAGAR SERVICE CENTER

# 7-2-1851,Fathe Bagh, Sanath Nagar, Hyd-18.

Telephone: 040-23800000,23801415



TOLICHOWKI QUICK REPAIR CENTER

# 9-4-76/A/6,Nizam Colony, Hyd - 500008

Telephone: 040-23565000



The following are some of the facilities provided by Fortune Ford to all our esteemed

customers:

In case of any break down, you can call our Road side assistance help line

no.9848844000. Towing facility is arranged with a nominal cost

Pick-up and Drop facility with prior appointment.

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mailto:[email protected]




Entire range of spare parts and accessories are available to ensure minimum down

time of your car.

A team of Ford trained and experienced service technicians to take care of your car.

An air-conditioned waiting lounge with valuable reading material and related

information to make your waiting time more memorable.

Body shop with computerized colour mixing equipment and well trained skilled staff

to take care of your every body shop repair job.

Insurance help desk to assist you in the event of any accident repair.

We look forward to a warm and long lasting relationship and wish you the

smoothest of the driving experience for years to come.

ACCESSORIES

Your car stands out in the crowd! This is no dream. To put a unique stamp of individual

personality and style on a Ford car, a snazzy range of accessories are available. So now there

is unlimited leverage to sport a distinct style! Genuine accessories are designed and

marketed by Ford India, keeping in mind individualistic styles. Each and every Ford accessory

is built to last and designed to stand apart for the discerning Ford owner...You! Also, at

Fortune Ford trained electricians and mechanics are available to ensure that each and every

accessory is fitted as per requirement, to get the best out of it.

Competitive Pricing:

Ford accessories are great value for money. What you get when you opt for Ford

accessories is economy in the long run. With Ford accessories, you can enjoy the feeling of

being a savvy customer.

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Highest Ford Standards of Quality:

Ford accessories conform to exacting standards of quality. And these standards are

the ones that the customers are familiar with, like the ones that Ford adheres to when the

cars are made.

Customized for Ford Cars :

All the accessories are perfectly compatible with the Ford cars. That means accurate fitment,

and of course, the perfect Ford styling.

Exclusive Designs:

A lot of creativity and effort is invested in designing Ford accessories. Each and every Ford

accessory can be easily differentiated because their exclusivity sets them apart from other

run-of-the-mill products.

CONTACT US AT

SOMAJIGUDA

Address 6-3-569/2, Rockdale, Somajiguda, Hyderabad - 500

082.

Telephone 040-23322340, 040-23300700

Email [email protected]

Mobile +91-9848844000

ABIDS

31


Address 5-9-171,Chapel Road, Abids, Hyderabad - 500

001.

Telephone 040-55848474


Mobile +91-9848885881

SANATHNAGAR

Address 7-2-1851,Fathe Bagh, Sanath Nagar, Hyderabad -

500018.



Mobile +91-9848885880

TOLICHOWKI

Address 9-4-76/A/6, Nizam Colony, Opp.Mogal Residency,

Tolichowki, Hyd -80

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Mobile +91-9848885882

2.3 History of Ford in India:

1907 India begins selling the Model A

1926 Ford India is established by Ford of Canada

1935 Indian government officials ask Henry Ford to consider building a car manufacturing

plant in Bombay

1941 Mahatma Gandhi sends spinning wheel, the symbol of India's economic independence,

to Henry Ford.

1954 Ford India operations cease.

1969 Ford re-enters India in a joint venture with Escorts Ltd. to produce tractors.

1991 Ford ceases tractor operations.

Ford establishes Climate Systems India, a joint venture with Maruti and Sumitomo

Corporation.

1993 Production starts at the Climate Systems India Plant in Bhiwandi.

33

HELP LINES


1995 (Feb) Ford demonstrates its commitment to the Indian market by completing an equity

purchase of 5.8% in M&M.

1995 (Sept) Ford and M&M file for government approval to establish a joint venture

company to manufacture and distribute vehicles.

1995 (Nov) Ford and M&M receive government approval on joint venture called Mahindra

Ford India Ltd. (MFIL.)

1996 (Jan) Mahindra Ford India Ltd. announces the choice of Maraimalai Nagar as the site

for the new manufacturing facility to begin with the production of the Fiesta.

1996 (Aug) The first Indian-built Ford Escort rolls off the line in the Nashik Assembly Plant.

1996 (Sept) Ford Escort receives more than 70,000 sales bookings.

1996 (Oct) Mahindra Ford makes history in India by simultaneously handing over the first

cars in seven cities just one month after close of bookings.

1997 (June) MFIL launches Ford Escort Freedom to mark India's 50th year of independence.

1997 (Sept) MFIL launches Ford Escort Anniversary to mark the first anniversary of Ford

Escort in India.

1997 (Oct) The Ford-sponsored photo exhibition, India: A Celebration of Independence,

opens in New Delhi.

1997 (Nov) Ford Escort chosen best quality car in JD Power's India Initial Quality Survey.

1997 (Dec) MFIL tops JD Power's Customer Satisfaction Index.

1998 (Mar) Ford establishes the Henry Ford Chair at the Indian Institute of Technology

M&M announces decision to modify its equity in MFIL.

1999 (July) Ford India lays the foundation stone for an export plant. The export plant will

source auto components locally and assemble kits to export to overseas markets.

1999 (Nov) Ford India launches the IKON -- first car built specifically for India by a multi-

national company -- built at its new state-of-the-art plant in Tamil Nadu.

2000 (Feb) Ford India announced that the IKON 1.3 CLXi Endura-E petrol would be available

at Ford dealerships across India from March 1, 2000.

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2000 (Mar) The IKON 1.6 Rally Sport was made available at Ford dealerships on March 24,

2000

The Ford IKON is specially designed for India. The IKON has 70 per cent local content.

2000 (Feb) On February 10, Ford India announced that Narain Karthikeyan would be racing

for the Ford-owned Jaguar racing team in the FIA British Formula 3 championship. The

company renewed its sponsorship agreement and organised a corporate sponsorship

consortium to provide training, development, mentoring and financial backing to Narain in a

bid to become the British Formula 3 champion in 2000.

2000 (Apr) Ford India launched Ford Assured on April 24, 2000, a new initiative to buy and

sell used cars. This initiative is a 'first of its kind' venture, in which Ford India along with its

dealerships will buy, recondition and sell various models of used cars.

2000 (June) Certified for ISO 14001 : 1996 on June 8, 2000

2000 (June) On June 23, 2000, Ford India introduced the latest member of the Josh team,

The Ford IKON EXi. This model is available at Ford dealerships from July 2000.

2000 (Aug) On August 4, Ford India announced the Conservation & Environmental Grants

programme in India. The grants programme is open to projects in five categories: Natural

Environment, Conservation Engineering, Heritage, Environmental Education and Youth

projects.

2000 (Sept) On September 11, Ford India launched the Ford IKON SXi – the stylish ‘josh’

machine -- simultaneously in New Delhi, Mumbai and Bangalore. This model is available at

Ford dealerships from mid-September 2000.

2000 (Oct) Ford India has started exporting Ford IKON CKD units, registering an initial order

of 1600 units in October 2000. Ford India is well on its way to reach the target figure of

21,000 IKONs in the current financial year, having already crossed the figure of 19,000

IKONs.

2001 (Feb) Ford India launched a distinctive website with exciting new design element and

features to delight motoring enthusiasts, called www.india.ford.com.

2001 (Feb) Ford Assured launched in a partnership with the dealership to buy, recondition

and sell used cars of different Indian makes.

2001 (May) Certified ISO 9001:1994 on May 02, 2001.

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2001 (Nov) Ford announces winner for the Ford Conservation and Environment Grant

program 2001. Ford India announced the winners of the Ford Conservation & Environmental

Grants (C&E) Programme in an awards ceremony held at IIT, Madras. Dr Palanichami, IAS,

Secretary, Environment & Forest Department, Government of Tamilnadu, presided over the

function and presented the grant to five winners from the adult and youth category.

2001(Nov) Ford India launched the Ford Mondeo.

2002 (Jan) Ford India show cases a wide spectrum of exciting cars at the Auto Expo 2002.

Ford India unveiled a wide range of exciting cars from the Ford Motor Company stable at the

Auto Expo 2002, at Pragati Maidan, New Delhi. Designed by renowned art director Sabu

Cyril, the Ford pavilion promises to provide an invigorating experience of unleashing the

power of imagination with fun to drive and stylish products on display.

2002 (Jan) Ford India Limited announced a strategic partnership with Hindustan Motors

Limited (HML) for the manufacture of automobile engines and transmissions in India.

Engines and transmissions for Ford India Limited will be manufactured at HML's state-of-the-

art machining and assembly plant at Pithampur near Indore in Madhya Pradesh.

2002 (Mar) Certified QS 9000: 1998, 3rd edition on March 21, 2002 Ford India received the

QS 9000 award from TÜV Süddeutschland.

2002 (Sept) New Ikon Variant 1.6 EXi was launched New Delhi, September 02, 2002 – Ford

India Limited today launched the Ford Ikon 1.6 EXi, its latest variant in the Ikon

portfolio,offering a combination of high performance and premium features at great value.

The new Ford Ikon 1.6 EXi, is powered by the 1.6 litre Rocam petrol engine, delivering 91 HP

@ 5500 rpm and a peak torque of 130 Nm @ 2500 RPM.

2003 (Jan) The New Ford Ikon NXT launched - The Next Level of Josh.

2003 (Feb) Ford India doubles sale with Ford Ikon NXT for the month of January 2003 with a

record 1,737 units compared to 860 units during the same month last year.

2003 (March) Adding Refinement to Josh- Ford India launches Ikon NXT ‘Finesse.’

2003 (June) Ford Celebrates Centennial in India.

Ford Motor Company awards World Excellence Award to Cooper Tire & Rubber India.

2003 (July) Ford India launches Ikon NXT SXi.

36


Ford India Ranks Highest in J.D. Power India Sales Satisfaction Study.

2003 (Aug) Ford launches Ikon Flair at Rs. 4.95 Lakhs.

2003 (Sept) Ford Endeavor debuts in India.

2003 (Oct) Ford announces price of Endeavour at Rs. 12.90 Lakhs.

2003 (Dec) J.D. Power ranks Ford Ikon highest in apeal.

BBC World’s Wheels Awards 2003

First ever Viewers’ Choice Awards announced

BBC World named the winning cars and bikes of the prestigious Wheels Awards 2003.

Sponsored by Servo World Class Engine Oil, Wheels is the popular weekly automobile show

on BBC World.

Ford Ikon 1.6 NXT SXI Best car between Rs 5 and Rs 8 Lacs

Ford Endeavor 4WD Best SUV over Rs 10 Lacs

2004 (Jan) Autocar SUV of the Year – Winner Ford Endeavour.

2.4 Fortune Ford Products

1. Ford Fiesta.

2. Ford Flair.

3. Ford Fusion.

37


4. Ford Endeavour.

Price list of above Products: (W.E.F May 1st, 2007)

Ford Fiesta:

(prices in rupees)

1.4 Duratec 1.6 duratec 1.6 Sxi Abs

PETROL Exi Spl. Elite pack* Zxi Sxi Abs With alloys

Ex- Showroom 5,86,500 5,86,500 6,32,200 7,18,200 7,18,200

Insurance 21,570 21,570 23,170 29,325 29,325

Life Tax 52,900 52,900 57,020 64,760 64,760

Registration 2,500 2,500 2,500 2,500 2,500

T/R Charges 500 500 500 500 500

Ext. Warranty(2 yr) 5,500 5,500 5,500 5,500 5,500

Incidental Charges 5,000 5,000 5,000 5,000 5,000

Essential Pack 2,340 38,000 2,470 2,470 22,470

On Road Price 6,76,810 7,12,470 7,28,360 8,28,255 8,48,255

1.4 Duratec

DIESEL Exi Spl. Elite pack* Sxi Abs Zxi Sxi Abs(A)

Ex- Showroom 6,96,500 6,96,500 8,02,200 7,42,200 8,02,200

Insurance 25,450 25,450 29,155 27,050 29,155

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Life Tax 62,800 62,800 72,320 66,920 72,320

Registration 2,500 2,500 2,500 2,500 2,500

T/R Charges 500 500 500 500 500

Ext. Warranty(1 yr) 5,500 5,500 5,500 5,500 5,500

Incidental Charges 5,000 5,000 5,000 5,000 5,000

Essential Pack 2,340 38,000 2,470 2,470 22,470

On Road Price 8,00,590 8,36,250 9,19,645 8,52,140 9,39,645

FORD IKON: 1.3 Flair (prices in rupees)

PETROL Flair Blast kit 1 (Rs.)** Blast kit 2 (Rs.)**

Ex- Showroom 4,75,900 4,75,900 4,75,900

Insurance 17,720 17,720 17,720

39


Life Tax 42,950 42,950 42,950

Registration 2,500 2,500 2,500

T/R Charges 500 500 500

Ext. Warranty(1 yr) 5,300 5,300 5,300

Incidental Charges 5,000 5,000 5,000

Blast Kit 3,120 35,000 24,000

On Road Price 5,52,990 5,84,870 5,73,870

FORD FUSION

Petrol TDCI

Ex- Showroom(VAT) 5,70,000 6,59,000

Insurance 23,880 24,135

Life Tax 51,420 59,430

T/R Charges 500 500

40


Registration 2,500 2,500

Ex – Warranty 5,990 5,990

Incidential Charges 5,000 5,000

Essential Pack 3,200 3,200

Total 6,62,490 7,59,755

FORD FUSION: ( W.E.F. 19th july,2007)

FORD ENDEAVOUR: (W.E.F. 1 st June 2007)

Diesel

Model 4x2 4x2(ltd edition)** 4x4

Ex – showroom 14,72,000 15,52,000 15,62,000

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Insurance 57,000 59,940 60,305

Life-Tax 1,32,600 1,39,800 1,40,700

T/R Charges 500 500 500

Registration * 2,500 2,500 2,500

Ex- Warranty 9,225 9,225 9,225

Incidential Charges 5,000 5,000 5,000

Total 16,78,825 17,68,965 17,80,230

Terms & Conditions:

Please collect the original receipt after paying the advance or full amount.

42


Prices are subject to change with out notice. Prices prevailing at the time of physical

delivery will be applicable.

Vehicles will be delivered only after all registration formalities are completed as per

the motor vehicle act.

100 % payment to be made before to delivery by D.D / Cheque / Cash / Pay order in

favour of “M/s. Fortune Automobiles India pvt. Ltd”.

Vehicle will be registered and delivered only after receipt of full payment.

Booking amount shall not carry any interest.

Please produce your PAN copy against delivery as for Govt. rules.

Cheque subject to realization.

Note: All payments to be made to the cashier at the show room only

CHAPTER 4

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THEORETICAL PERSPECTIVE

Customer Relationship Management

Customer relationship management (CRM) is perhaps the most important

concept of modern marketing. Until recently, CRM has been defined narrowly as a

customer data management activity. By this definition, it involves managing detailed

information about individual customers and carefully managing customers “touch

points” in order to maximize customer loyalty.

More recently, however, customer relationship management has taken on a

broader meaning. In this broader sense, Customer relationship management is

the overall process of building and maintaining profitable customer relationships by

delivering superior customer value and satisfaction. It deals with all aspects of

acquiring, keeping, and growing customers.

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To over come such problems, many companies are now turning to customer

relationship management (CRM) to manage detailed information about individual

customers and carefully managed customer touch points in order to maximize

customer loyalty. In recent years, there has been an explosion in the number of

companies using CRM. U.S companies spent an estimated $ 42.8 billion last year on

CRM systems from companies such as Siebel Systems, Oracle, Micro Soft and SAS

and spending is expected to increase by 11.5% a year through 2007.

CRM consists of sophisticated software and analytical tools that integrate

customer information from all sources, analyze it in depth, and apply the results to

build strong customer relationships. CRM integrate everything that company’s sales,

service, and marketing teams know about individual customers to provide a 360-

degree view of the customer relationship.

CRM analysts develop data warehouses and use sophisticated data mining techniques

to unearth the riches hidden in customer data. A data warehouse is a company wide

electronic data base of finely detailed customer information that needs to sifted

through for gems.

The purpose of a data warehouse is not just to gather information, but to pull it

together into central, accessible location. Then, once the data warehouse brings the

data together, the company use high-powered data mining techniques to sift through

the mounds of data and dig out interesting finding about customers. Such data systems

can give a company a big competitive advantage.

By using CRM to understand customers better, companies can provide high

levels of customer service and develop deeper customer relationships. They can use

CRM to point out high-value customers, target them more effectively, cross-sell the

company’s product, and create offers tailored to specific customer requirements.

45


CRM benefits don’t come without cost or risk, not only collecting the original

customer data but maintaining and mining it. An estimated half or more of all CRM

efforts fail to meet their objectives. The most common case of CRM failures is that

companies mistakenly view CRM only as a technology and software solution. But

technology alone cannot build profitable customer relationships.

“CRM is not a technology solution-you can’t achieve … improved customer

relationships by simply slapping in some software’s ”, says a CRM exports.

Instead, CRM is just one part of an effective overall customer relationship

management strategy.

Benefits of CRM

Improved customer retention

Purchase amount increases over time

– Average of 8%/year in the insurance industry

Reduction in costs

– Order processing

– Short-term acquisition costs

– Customer referrals

On the “grey markets”

– Often harmful to profits

– Frequently used to level inventories 2-way communications

– Improves customer satisfaction

Cultural changes:

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Top executives must drive the initiative

– Shift from product orientation to customer

Shift in marketing type

– Away from mass, towards personal “1:1”

Change in attitude at all levels

– Compensation system must change to reinforce new behaviors

New positions or teams should be formed.

CRM across Company Functions:

Marketing – Account management expertise

Research & Development – Specifications that define requirements

Logistics – Knowledge of customer service requirements

Production – Manufacturing strategy

Purchasing – Sourcing strategy

Finance – Customer Profitability Reports

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The concept of relationship management

At the brodest level, the function of an enterprise’s marketing activities is to

bring to buyers and sellers together, to create customers. while getting customers is

fundamental to business success, keeping customers is more important. successful

firms work build long term relationships with their customers. the term relationship

management (relationship marketing)communicates the idea that major goal of a

business enterprise is to engage in interactions with customers over the long term.

Consider the local butcher of years ago. When a female customer walked in to

the shop, the butcher said hello and called the customer by name. the butcher knew

how customer wanted her steaks and chops trimmed. He knew her family always

grilled hamburgers on weekend and those they preferred ground sirloin over ground

chuck although he specialized in meats; he also stocked hamburger buns so is

customer needed make only one stop. she appreciated the personalized service she

received both the butcher and the customer profited from this loyalty relationship.

The old-fashioned butcher understood his customers and promptly responded

to their needs. in recent years, contemporary marketers have realized that they can

learn a lot from shop keepers of the past. Contemporary markets recognize that, once

a sale occurs, the firm must stress managing relationships that will bring about

additional exchanges. Making a sale should not be viewed as end of the marketing

process, but rather as the start of the organization’s relationship with a customer.

(The relationship between a buyer and a seller seldom ends when sale is made. in a

greatly increasing proportion of transactions, the relationship actually intensifies

subsequent to the sale. this becomes the buyer’s critical factor in the buyer’s choice

48


the seller the next time around ………the sale merely consummates the courtship then

the marriage begins. how good the marriage is depends on how when the relationship

is managed by the seller.)

A principle thesis of this text is that customers who receive more than they expect

from an organization are pleased and satisfied. Satisfied customers who develop a

history of positive interactions and who want to purchase the same product or a

related item will return to the organization that has treated them well in the past. As

firms strive to treat customers in a manner that encourages repeat sales, they

maximize the lifetime value of customer relationships

Successful small firms, such as the traditional butcher, have to be relationship

oriented. They know that they customers – buyers who purchase promises of

satisfaction- prefer to be business repeatedly with people and organizations’ they

trust. They know that establishing relationships with customers can increase long-run

sales and reduce marketing cost. They know that not all customers want the same

product and services. They know that two individuals may buy the same product for

different reasons. they know that marketing to existing customers to gain repeat

business provides benefits to both the organization and customers. in summary, a

business enterprise, organization, or firm must focus on both getting and keeping

customers. It is the marketer’s job to use the resources of the entire organization to

create, interpret and maintain the relationship with customers.

It seems important to note that all academic and practitioner-oriented experts

see a gap between the relationship management and practical application.

Philosophically, relationship management addresses the heart of marketing and,

hopefully, the heart any organization-its desire to profitably meet the life needs of

customers better then the competition does. At a tactical level, when inappropriately

applied relation ship management uses information technology to spawn short-term

loyalty schemes that are often opportunistic and may create loyalty to the

incentive(i.e., frequent flyer points), as opposed to the provider(the airline).thus it is

to important to understand both the philosophy and the tactics of customer

relationship management.

A customer relationship management (CRM) system by its simplest

definition, is a process to compile information that increases understanding of how to

49


manage an organization’s relationship with customers. in this simple view, a CRM

system consists of two dimensions, analysis of action. More formally, CRM is

business strategy that uses information technology to provide an enterprise with a

comprehensive, reliable, and integrated view of its customer base so that all processes

and customer interactions help maintain and expand mutually beneficial

relationships.

CRM is thus a technique or a set of processes designed to collect data and provides

the information that helps the organization evaluate the strategic options. A CRM

strategy should help organizations improve the profitability of their interactions with

current and potential customers while at the same time making those interactions

friendlier through individualization and personalization. The purposes of a CRM

system are to enhance customer service, improve customer satisfaction, and ensure

customer retention by aligning business processes with technology integration.

A CRM system brings together lots of pieces of information about

customers, customer characteristics, sales transactions, marketing effectiveness,

responsiveness, and market trends. for example, consider, the united services

automobile association(USSA),a company that offers insurance and financial services

to more than 3.3 million customers who share a mutual background: the military.

(nearly 90 percent of all active duty military officers are members, and less than

1%ever leave.)

USAA’s CRM approach relies of information technology to emphasize

aerosolized service, mainly via the company’s 32 telephone call centers, where nearly

10,000 customer service representatives filed over 4,00,000 calls each day. When a

call comes in, the employee request the member’s account number and then opens a

screen listing a chronology of all previous contact and purchases. As conversation

proceeds, the USSA customer service representative might access the firm’s

enterprise need based sales service tool, which generates a customized profile of

services that the member might find useful. For instance, if the member lives in a

flood plain yet doesn’t have flood insurance, the service representative can inform the

customer about the benefit of flood insurance.

An effective CRM system describes customer relationship in sufficient detail

so that all aspects of the organization can access information, match customer needs

50


with satisfying product offerings, remind customers of services requirements, know

what other product a customer has purchased, and so forth. A bank’s CRM should

give a service representative in its telephone all center the ability to retrieve a

complete record of a customer’s company interactions seconds after the customer

provides identification information. Many CRM system allow customers themselves

to directly access information about their transactions with a company

.POTENTIAL RETURNS OF CRM SYSTEMS

Proponents of CRM systems and the traditional concept of marketing view the

customer as the pivotal point around which the business revolves. A fundamental

principle of marketing is that customers are different. Some customers cost a great

deal to attack and great deal of service while others require very little service and

seem anxious to learn about organization. A basic tent is that different customers

represent different levels of profit of firm.

Successful organization attempt to define characteristics of the best customers,

to then estimate the lifetime value of such customers, and to adjust marketing strategy

accordingly. Best customers represent a proportion of all customers in an industry

who provide profitable interactions, cost little to care for, and who tend to spread

positive word of mouth information about the organization. Calculating value over

time as a return of the firms investment in acquiring the customer requires as a

comparison of revenue and costs how much did we spend achieve a given level of

revenue.

There are potential benefits as well as cost associated with CRM system for

both organization and customers. Organization, or the CRM champions within the

organization, tends to think of all the benefits of the system the promise of increased

revenues and lowered cost. Customers, in contrast, may first think of the cost

associated with the system and have to be reminded of some of the benefits. For

example, if the customer orders one product from supplier on the internet and there

and suddenly 2,000 messages from firms that sell related goods, the customer may

think twice before placing another order on the web or with that organization. Thus ,it

51


can be helpful for organization to consider the benefits and disadvantages of CRM as

they invest in their development.

POTENTIAL BENEFITS OF CRM SYSTEM TO THE

ORAGANIZATION

The satisfaction of consumers need and wants is the justification for an organization

existence. An effective CRM system is away for the organization to develop a

customer focus that has impact that allows the organization to hear the customer

voice. A customer focus means that the organization is ready to view the purchasing

process from the customer’s point of view, to empathize with the customer’s feelings,

and to treat the customer’s information with great care. If organizations can enough

about individual customer than the customer should be satisfied, trusting, and willing

to talk positively to others about the organizations wonderful approach the system

should enable the organization to retain regular customers as it acquires new ones.

Retaining customers and establishing customer loyalty are major objectives of

CRM approaches. The cost of acquiring a customer can be high. An old business

adage says “it costs six times as much to a new customer as it does keep an old

customer.” Although the figures vary by industry an increase is passing year, the point

is valid. There are no acquisition costs existing customers who tend to by the same

item again and we seek other related products or services from trusted organization.

Higher customer retention rates will generally increase revenues and, in most cases,

reduce cost. Customer retention simply means that firms satisfies customers and/or

offers variety such that the customer comes back and repeats transaction with the

same organization.

“The first purchase only trial” is another relevant saying. Suppose a telephone

company six million customers using a call waiting feature that cost five dollars a

month. During the course of a year, a certain % of this customer cancel their service

for reason during the trial period. If the firm could, through personalized promotional

messages, stop just I % of those customers –or, 60000 accounts – from canceling, it

would retain $3.6 million in annual revenue.

52


The development of CRM system leads to a different kind of thinking about

the nature of the business. Historically, marketers have thought in terms of a single

product, and their goal has been achieving a high share of market –more customers

than their competitors have. In relationship management, the company objective often

is to achieve a high share of customer. The company tries to sell an individual

customer as many goods and services as it can over the lifetime of that customer’s

patronage. In essence, share of customer, or share of wallet, means that the

organization wants to please customer to the point that they want the organization to

sell them something else. For example wal-mart specializes in lower priced goods,

and through it super centers it increase it’s share of customers it regular line of

products to include groceries and automobile repairs. CRM system attempt to make

individual customer more profitable by recognizing the initial sale and recommending

related items or services to enhance the customer’s experience. Thus, cross-selling

and up selling can be fundamental outcomes of effective CRM system.

Cross selling is the marketing of complementary products to existing

customers. a retail bank that has checking account customer may market safety

deposit box or a car loan to his customer. Over time, it’s able to get the customers

home mortgage and equity loan business. One aspect of cross selling is bundling, in

which a combination of products is sold as bundle at a price lower then the total of

individual prices. for example, southwestern bell telephone’s local telephone service

offers the work call return, call blocker, call forwarding, call waiting ,caller ID, and

several offerings for one low monthly rate. Up selling is the marketing of higher value

of a products to new or existing customers, an insurance company may convince a

customer to up grade coverage, a credit card company may try to persuade a customer

to upgrade to the platinum card, or a furniture store may attempt to convince a

customer to purchase the more expensive versions a table or couch.

An organizations experience the benefits of the customer focus-retention of

loyal customer and greater share of customer- the long term profit picture should also

improve .since it’s less costly to retain a customer then attract to a new one, CRM

system that actually enhance loyalty reduce expenses. as sales related products and

service increase, revenues rise. The beauty of customer focus is the emphasis its

53


places on the way that organizations collect use information as a fundamental tool in

creating value for customers. However to calculate the return on investment in CRM

system, organizations must also consider costs.

POTENTIAL COSTS OF CRM SYSTEMS TO THE

ORGANIZATIONS

CRM approach is that it allows to marketers to send the right message about the right

offers to the best customers at the right time. Achieving that level of quality from a

CRM system may require a significant investment in the organizations information

technology infrastructure (served based systems, software licenses and updates,

firewalls for security, personal to install and maintain systems training for system

users in different disciplines, etc)the IT infrastructure is the processing capacity

required to fulfill customer needs.

The concept of a building technology infrastructure can apply to cities and

towns as well as firms. With significant well processes, the system well must

available 24 hours each day for 7 days of each week for 365 days each and every year.

If the organization is located in an area that experiences intermittent power outages, it

may loss creditability, customers and the possibility future repeat sales unless its

invests in battery support and fail safe back up systems.

Another significant cost in developing an effective CRM system is the prices

process of change. Process change implies an alteration in the habitual pattern for

accomplishing a task, implementing new system and changing traditional thought

pattern both be very difficult to accomplish. If the CRM approach is viewed, for

example, as simply a way to provide financially based incentives, customer loyalty

may not be develop, and , in fact , the firm may damage its brand image as customer

anger develops. As competitors match the financial incentives, the entire industry may

experience higher operating costs for the same level of sales a decline probability “it

takes a much deeper philosophy of relationship development based on added value

delivery to sustain relationships at effective level” .

Despite the best efforts of organizations to design effective CRM system, it is

people who must implement those system and customers who must appreciate them,

54


use them with ease and feel safe in the process. Organization must appreciate “the

dance of change” the inevitable interplay between growth and limits/ benefits and cost

positive outcomes are accrue. CRM system holds the promise of growth and benefits

but the implementation of system carries with its limits, cost, and other risks.

POTENTIAL BENEFITS OF CRM SYSTEM FOR CUSTOMERS

Customer may also profit from CRM approaches and relationship marketing efforts.

First the continuity derived from relationship with the same seller simplifies the

buying process. Continuity implies the stable connection or linkage. A Honda

advertisement says, “Life is full of complicated decisions. Simplifies” this

advertisement reflects and understanding that people want their buying decisions to be

easier. Many buyers do not to want to evaluate too many factors when choosing

among alternatives. If a firm can consistently meet a customer’s need over time, the

continuity of the exchange serves to simplify the process and reduce the risk of

dealing with new supplier.

Buyers become regular customers because they to business with organizations

that provide a consistent level of product or service quality. For example, most people

are loyal to their hairdressers or barbers.

Marketing strategy:

A marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage.

Marketing strategy is the complete and unbeatable plan, designed specifically

for attaining the marketing objectives of the firm/business unit. The marketing

objectives indicate what the firm wants to achieve; the marketing strategy provides

the design for achieving them.

For example, if the marketing objectives of a business unit stipulate that next

year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent

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of sales revenue, it is the job of marketing strategy to indicate how and wherefrom

this sale and profit will come, which product lines/products/brands will accomplish

this task and how.

STRATEGIC MARKET SEGMENTATION:

Markets can be segmented using several relevant bases. For example,

demographic characteristics of consumers, such as age, sex, income/purchasing

capacity, education level etc, form one base for segmentation. Geographic

characteristics constitute another; and buying behavior of the consumers forms yet

another base.

The various types of segmentations are

Geographic segmentation

1. Climatic zone

2. Region

3. State

4. District

5. Urban/rural area

Demographic segmentation

1. Age

2. Sex

3. Maritial status

4. Family size

5. Race

6. Religion

7. Occupation

8. Community, language

9. Purchasing capacity

10. Educational levels

11. Social status and income

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Psychographic segmentation

Buyer behavior

Benefits segmentation

Volume of purchase segmentation

MARKETING STRATEGIES OF FORD:

Product differentiation based on operational efficiency:

FORD EXCELLING THROUGH SERVICE: Ford tries to differentiate its

offer on the plank of service. It has gone in for a new norm in customer service: “fix

it right-the first time-on time”. Ford is also supplying videotapes showing how repairs

have to be done.

Adopting Offer to Suit Target Segment:

Ford modifies its models for India:

Ford modified its models for the Indian target segments as shown below:

Higher ground clearance to make the car more compatible to the rougher road

surface in India.

Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian

roads.

Changes in cooling requirement, with greater airflow to the rear.

Higher resistance to dust.

Compatibility of engine with the quality of fuel available in India.

Location of horn buttons on the steering vehicles. (As the India motorist uses

the horn more frequently, for cars sold in India, the horn buttons are kept on

the steering wheel and not on a lever on the side as in the models sold in

Europe.)

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Strategic segmentation of cars:The Ford in India has launched the car only for few segment of people.

The segmentation of car buyers based on price preferences are

Family car segment: These cars forms a reasonably sizeable segment of

the market (around 15 percent).

Preferred price range is from 5 lakh to 6 lakh.

‘FORD IKON’ AND ‘FORD FUSION’ come under this type of segment.

Premium car segment: This segment represents buyers who need a real

world-class car and are willing to pay the due price.

Preferred price range starts from 8 lakh to 12 lakh.

‘FORD FIESTA’, ‘FORD MONDEO’ come under this segment of cars.

SUV segment: The buyers of this segment like to have a big vehicles.

And these cars are also useful for sport riding and even on hill areas.

There body is designed similar to offroad vehicles, which can

withstand to Indian roads.

‘FORD ENDEAVOUR’ occupies this segment.

Strategic Promotions by FORD:Ford follows the promotions at two levels, they a

1) Promotions of product directly by the manufacturer.

2) Promotions at dealer level.

In the first step the products of vehicles manufactured by the Ford Automotives are

directly promoted by the manufacturer by himself.

In the second step the dealer of the vehicles promotes the vehicles.

The various promotional strategies followed by the Ford are

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Advertising in paper

Word of mouth etc...

CHAPTER 5

59



RESALE VALUE OF DIFFERENT BRANDS

Resale values of car's after two years of ownership as a percentage of

purchases price.

BRAND VALUE (%) RANKING

Fork Ikon 63 1st

Maruti 55

Hyundai Santro 60 2nd

Maruti Omni 54

Maruti Zen 58

Maruti Alto 56

Maruti wagon-R 55

Tata Indica Diesel 58

Fiat Uno 43

Maruti Esteem 51

Opel Corsa 55

Hyundai Accent 54

Honda city 56

Mitsubishi Lancer 49

Ford Fiesta 59

Ford Endeavour 55

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Ford Fusion 50


QUESTIONNAIRE OR SURVEY METHOD

The survey technique is intended to secure one or more items of

information from a sample of respondents who are representatives of a larger group.

The information is recorded on a form known as questionnaire. As data are gathered

by asking questions from persons who are believed to have desired information, the

method is also known as questionnaire technique.

Reasons for wide use of this method.

It can secure both qualitative and qualitative information directly from the

respondents.

It is the only method of directly measuring attitudes and motivations.

It is quite flexible in term of the types of data to be assembled, the method of

collection or the timing of research.

A questionnaire is simply a formalized set of questions for eliciting

information. As such, its function is measurement and it represents the most common

from of measurement in marketing research. Although the questionnaire generally is

associated with surveys, it is also frequently the measurement instrument in

experimental designs as well. When a questionnaire is administered by means of

telephone or by a personal interview, it often is termed as interview schedule, or

simply schedule.

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Data Collection:

The collection of information is ascertained through two principal

Sources:

1). Primary Data

2). Secondary Data

1. Primary Data:

Meaning: primary sources of data are the data which needs the personal

efforts to collect it and which are not readily available. The collection of this data

requires lot of time and efforts.

Following are the few ways in which the primary data can be collected:

i ) Questionnaires: Its set of questions on a sheet of paper was being

given to the respondents of fill it, bases on which the data was interpreted.

ii ) Direct interviewing: Direct interviewing involved the process

where I asked the questions directly to the customers and I got the feedback.

2. Secondary Data:

Secondary sources are the other important sources through which the data

were collected. Any data which have been gathered earlier for some other purpose are

secondary data in the hands of researcher.

Two sources of secondary data:

Internal sources.

External sources.

Internal souces:

Accounting records.

Sales force reports.

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Miscellaneous reports.

Internal experts.

External sources:

Computerized data base

Associations

Govt. agencies.

Directories.

Published sources.

External experts.

.

The secondary sources helpful for study were

1. Textbooks like marketing management research methodology

advertisement and sales promotion etc.

2. Internet was made use for the collection of the data.

3. Newspapers were also referred.

4. Business magazines were referred.

5. Some journal was also referred

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CHAPTER 6

ANALYSIS

AND

64


INTERPRETATION

Table – 1

Customer satisfaction over Ford brands:

Attributes No. of Respondents. Percentage %

Maintenance 20 20 %

Value for money 10 10 %

Insurance facility 15 15 %

Warranty 20 20 %

Finance 15 15 %

Servicing 20 20 %

Total 100 100%

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Interpretation:

From the above table 60 % of the customers satisfy service, warranty and

maintenance. Remaining 40% of customers are satisfied with insurance, Value for

money and finance facility.

Table – 2Market demand over Ford Fiesta variants:

Variants No. Of Respondents. Percentage%

Exi (Diesel) 10 10 %

Zxi (Diesel) 25 25 %

Sxi (Diesel) 15 15 %

Exi (Petrol) 10 10 %

Zxi (Petrol) 25 25 %

Sxi (Petrol) 15 15 %

Total 100 100%

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Interpretation:

From the above table 50 % of the customers use Zxi. Remaining 30% of

customers are use Sxi, and 20% of customers use Exi. It means fiesta Zxi is a market

boom.

Table – 3

The channel to know about ford fiesta.

Came to know by. No. Of Respondents. Percentage%

Paper Add 10 10 %

Tagging 10 10 %

Mail 15 15 %

Executive 20 20 %

Event 20 20 %

Road Shows 15 15 %

Friends & Relations 10 10

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Total 100 100%

Interpretation:

From the above table 40 % of the customers came to know by the executives &

events. 30 % of the customers by road shows and mails. 30 % of the customers by

paper add, tagging and relations.

Table – 4

Influence factors to afford ford brands.

1. Performance:


Excellent 20 20 %

Very Good 45 45 %

Good 25 25 %

Fair 10 10 %

Poor 0 0

Total 100 100%

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Interpretation:

From the above graph it is clear that 45% of people are satisfied with the ford car

performance, 20% of people are fully satisfied ,25% of customers feel good

performance and only for 10% its below average line.

Table – 5

Safety system of ford brands:


Excellent 20 20 %

Very Good 30 30 %

Good 40 40 %

Fair 10 10 %

Poor 0 0

Total 100 100%

Excellent

Very Good

Good

Fair

Poor

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Excellent

Very Good

Good

Fair

Poor

Interpretation:

The above graph depicts 20% of customers are opinion was too good safety system ,

70% people says it good system of safety and only 10% feel that below average.

Table – 6

After Sales Service system:


Excellent 20 20 %

Good 40 40 %

Poor 40 40%

Total 100 100%

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Interpretation:

The above graph shows that on an average 60 % are satisfied with after sale service

and only 40 % of customers are not satisfied with existing service system.

71


CHAPTER7

FINDINGS & SUGGESTIONS

72


OBSERVATIONS

The research has brought to light various facts about customer relationship at Fortune

Ford the questionnaire that was contact customers to obtain their feedback had helped

to understand customer needs and wants and their feedback is providing to maintain

better customer relationship.

1 It has been found that most of the customers were satisfied with the Ford

Fiesta model.

2 Ford Fiesta is maintaining a good position in the market among its

competitors.

3 Most of the customers satisfied with Dura technology, safety features and

it’s performance.

4 Some of the customers are satisfied with the mileage of Ford Fiesta.

5 Some of the customers are came to know about the Ford Fiesta through the

mailing and their friends and relatives.

6 It is observed that the most of the corporate customers are attracted by the

Corporate Offers which are provided by Fortune Ford.

7 Majority of the respondent feel that Fiesta model is excellent and good

value for money.

8 It is observed that the customers are satisfied with the total maintenance

plan.

9 It is observed that most of the customers are highly satisfied with

insurance and finance facility.

10 Performance is one of the influencing factor to the customers.

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SUGGESTIONS

After the analysing the data gather to the survey, the following suggestion’s are

proposed:

1 In an attempt to maintain good relations, CUSTOMER CONTACT

PROGRAM (CCP) is to be carried out every month to receive their

feedback regularly.

2 Efforts should be made to contact the customers right after the sales this

could help the management to receive precise feedback from the customers

which might be possible through the CCP.

3 For increasing their sales the company should provide one or two event

programs for every six months once.

4 More number of customers are not highly satisfied with it’s service. Need

improve the better services.

5 Fortune Ford is increasing its potential customers in the last 3 months, for

that the company should increase customer service centres in Hyderabad

for customer convenience.

6 Now a days, customers are looking for a free offers that are provided by

company with vehicle, comparing to other competitors, considering this

company should be provide more free offers..

7 Sales personal should be upgrade regularly with all the technical

information and new pricing list about the vehicle.

8 Efforts should be made to collect feedback after sales service..

9 Effort should be made to implement suggestions offered by the customers.

10 Manufacture such a car, which is affordable by all income segments of

people.

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CHAPTER8

LIMITATIONS

75


LIMITATIONS OF THE STUDY

The study is subjected to the following limitations.

A portion of the respondents contacted were not precise and genuine in giving

their opinion of satisfaction or dissatisfaction. If accidentally they had badly

experience at one instance, they would mark very poor.

To measure the exact level of customer relation the sample size was small.

Short time period was inadequate for conducting detailed study among the

customer.

The study was restricted to Hyderabad and Secundrabad only.

The study was limited to the capabilities and willingness of the respondents in

appropriately answering the questions.

The study was limited for a period of 45 days only.

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APPENDIX

77


QUESTIONNAIRE

Introduction & Purpose:

Good _________________. I’m _____________________________________ from

St.Joseph’s P.G. College, HYDERABAD. As a part of my MBA curriculum, I am

doing the project on “Customer Relationship Management”. I am doing this survey

for the award of Master of Business Administration. Kindly, co-operate, the

information given by you will be used for academic purpose only.

1. Do you have a Ford Motor car?

a) Yes b) No

Car Name & Model ________________________________.

2. Since how long you are using this car.

0 – 6 Months 1 year 2 years Above 2 years

3. Are you satisfied with the following services of your car.

Maintenance: High - 1 Low - 2 Medium - 3

Value for Money: Good - 1 Fair - 2 Poor - 3

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Insurance Facility: V. Good - 1 Good - 2 Fair - 3

Warranty: V. Good - 1 Good - 2 Fair - 3

4. How would you rate the performance of your car.

Excellent V. Good Good Fair Poor

1 2 3 4 5

5. How would you rate the service of your Motor Company? (Please Rank).


1 2 3 4 5

a) Show room ambience

b) Distance

c) Appeal

d) Reception (Proper Planning)

e) Any other (please specify)…..

6. How would you rate the sales person’s performance? (Please Rank).


1 2 3 4 5

a) Sales personnel knowledge (about product)

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b) Experience about Technical knowledge

c) Behaviour

d) Handling queries / problems

7. How would you rate the delivery terms of your Motor Company?


1 2 3 4 5

Timely / Promptly delivery

Safely

In condition

Delivery Process

8. What are the value attributes you normally look while purchasing a Four Wheeler?

Price Comfort

Quality Safety

Style Performance

Brand Image Warranty

9. Are you aware about All Ford Models.

Yes No

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YOUR VALUABLE SUGGESTIONS & COMMENTS

emographic:

Name : ____________________________________________.

Occupation: ____________________________________________.

Ph No : _____________________________________________.

E-mail Id : _________________________________________ ___.

Address : _______________________________________ __ ____

______________________________________________

_______________________________________________.

Thank you for sparing your valuable

time.

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BIBILIOGRAPHY

Name of The Book Author Name

Marketing Management : Philip Kotler

Fundamentals of Marketing : William J. Stanton

Bruce J. Walker

Marketing Research : Donald S. Tull

Dell I Hawkins

Web Sites:

www.india.ford.com

www.fortuneford.com

www.google.com

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http://www.google.com/

http://www.fortuneford.com/

http://www.india.ford.com/

Documents

Ford Project