Make Every Day

Exciting

A PROJECT REPORT ON
CUSTOMER RELATIONSHIP
MANAGEMENT
AT
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 STUDY
1.2 - 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
STUDY
The 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.

Marketing Management concepts

Produc
Produc
Production
Production Selling
Selling Marketing
Marketing Societal
Societal
tt

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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Existing Selling & Profits through

Factory products promoting sales volume

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.

Customer Integrated Profits through

Market needs marketing customer

satisfaction

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.

Society

(Human
welfare)

Consumers
Company
(Want 14
(Profits)
satisfaction)
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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.

Product
Product Price
Price
Product
Product variety
variety List
List price
price

Quality
Quality &
& Design
Design Discounts
Discounts

Features
Features Allowances
Allowances

Brand
Brand name
name Payment
Payment period
period

Packaging
Packaging &
& Services
Services Credit
Credit terms
terms

Warranties
Warranties &
& Returns
Returns
Target
Place
Place Custome
Channels
Channels rs

Coverage
Coverage && Promotion
Promotion
Locations
Locations Advertising
Advertising
Assortments
Assortments Personal
Personal selling
selling
Inventory
Inventory Sales
Sales promotion
promotion
Transportations
Transportations Public
Public relations
relations
Logistics
Logistics

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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.

Analysis

Planning
Planning Control
Control
Develop
Develop Implementation
Implementation Measure
Measure results
results
strategic
strategic plans
plans

Carry
Carry out
out plans
plans

Evaluate
Evaluate results
results
(( The
The company
company
turns
turns the
the plans
plans
Develop
Develop
marketing
marketing plans
plans in
in to
to action
action ))
Take
Take corrective
corrective
action
action

Customer value and

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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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CHAPTER 3

BRIEF DESCRIPTION OF
THE ORGANISATION

3.1 ABOUT FORD COMPANY

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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:

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

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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
 Delivering innovative products and services that offer high value in terms of
function, price, quality, safety and environmental performance

Progress Since Our Last Report

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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,

Bill Ford
competitive and profitable in a world that is
Chairman & CEO,

facing major environmental and social changes."

Ford Motor Company

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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.

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

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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
address environmental and social needs without breaching its fiduciary responsibility
to shareholders.

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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.

Technological innovation:

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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 .

Bill Ford
Chairman and CEO

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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.

"The challenge for us now is to reconcile our need to respond

to mainstream investors with our long-term sustainability
goals."

Barbara Gasper
Vice President
Charles Griffith Investor Relations
Auto Projector Director,

Madelyn Hochstein Marv Adams

President and Founder, DYG Inc. Senior Vice President
Corporate Strategy and

Chief Information Office

3.2 FORTUNE FORD PROFILE:

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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.

SHOWROOM

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• 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: service@fortuneford.com

• SANATHNAGAR SERVICE CENTER

# 7-2-1851,Fathe Bagh, Sanath Nagar, Hyd-18.
Telephone: 040-23800000,23801415
Service Appointment No. 9848885880
e-mail: service2@fortuneford.com

• TOLICHOWKI QUICK REPAIR CENTER

# 9-4-76/A/6,Nizam Colony, Hyd - 500008
Telephone: 040-23565000
Service Appointment No. 9848885882
e-mail: service3@fortuneford.com

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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• 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:

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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.

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 sales@fortuneford.com

Mobile +91-9848844000

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ABIDS

Address 5-9-171,Chapel Road, Abids, Hyderabad - 500 001.

Telephone 040-55848474

Email service@fortuneford.com

Mobile +91-9848885881

SANATHNAGAR

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

-500018.

Telephone 040-23800000

Email service2@fortuneford.com

Mobile +91-9848885880

TOLICHOWKI

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

Tolichowki, Hyd -80

Telephone 040-23565000

Email service3@fortuneford.com

Mobile +91-9848885882

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Help Lines

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.

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.)

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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.

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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.

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

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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.

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.

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2.4 Fortune Ford Products

1. Ford Fiesta.
2. Ford Flair.
3. Ford Fusion.
4. Ford Endeavour.

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

• Ford Fiesta:

(prices in rupees)

1.4 Duratec 1.6 1.6 Sxi Abs

duratec

PETROL Exi Spl. Elite Zxi Sxi Abs With alloys

pack*

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 5,500 5,500 5,500 5,500 5,500

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yr)

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

Charges

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 Sxi Abs Zxi Sxi Abs(A)

pack*

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

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 5,500 5,500 5,500 5,500 5,500

yr)

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

Charges

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

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FORD IKON: 1.3 Flair (prices in rupees)

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

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

Insurance 17,720 17,720 17,720

Life Tax 42,950 42,950 42,950

Registration 2,500 2,500 2,500

T/R Charges 500 500 500

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

yr)

Incidental 5,000 5,000 5,000

Charges

Blast Kit 3,120 35,000 24,000

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

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

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

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

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

Diesel

Model 4x2 4x2(ltd 4x4

edition)**

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

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 5,000 5,000 5,000

Charges

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

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Terms & Conditions:

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

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

CHAPTER 4

THEORETICAL
PERSPECTIVE

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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.

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,

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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.

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.

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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:
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.

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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

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

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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
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

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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
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

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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
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

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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
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,

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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.

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

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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
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,

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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,
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

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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
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.

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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

 Psychographic segmentation
 Buyer behavior
 Benefits segmentation
 Volume of purchase segmentation

MARKETING STRATEGIES OF FORD:

• Product differentiation based on operational

efficiency:

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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.)

• 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).

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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

• Advertising in paper
• Word of mouth etc...

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CHAPTER 5

RESEARCH
METHODOLOGY

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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
Ford Fusion 50

RESEARCH METHODOLOGY

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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.

Data Collection:

The collection of information is ascertained through two principal

Sources:

1). Primary Data

2). Secondary Data

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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.
 Miscellaneous reports.
 Internal experts.
• External sources:
 Computerized data base
 Associations
 Govt. agencies.
 Directories.
 Published sources.
 External experts.

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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
INTERPRETATION

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Table – 1

Customer satisfaction over Ford brands:

Attributes No. of Percentage %

Respondents.
Maintenance 20 20 %

Value for money 10 10 %

Insurance facility 15 15 %

Warranty 20 20 %

Finance 15 15 %

Servicing 20 20 %

Total 100 100%

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.

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Table – 2
Market demand over Ford Fiesta variants:

Variants No. Of Percentage%

Respondents.
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%

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.

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Table – 3

The channel to know about ford fiesta.

Came to know by. No. Of Percentage%

Respondents.
Paper Add 10 10 %

Tagging 10 10 %

Mail 15 15 %

Executive 20 20 %

Event 20 20 %

Road Shows 15 15 %

Friends & Relations 10 10

Total 100 100%

Interpretation:

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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:
Attributes No. of Percentage %
Respondents.
Excellent 20 20 %

Very Good 45 45 %

Good 25 25 %

Fair 10 10 %

Poor 0 0

Total 100 100%

Excellent
Very Good
Good
Fair
Poor

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.

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Table – 5

Safety system of ford brands:

Attributes No. of Percentage %

Respondents.
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

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.

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Table – 6

After Sales Service system:

Attributes No. of Percentage %

Respondents.
Excellent 20 20 %

Good 40 40 %

Poor 40 40%

Total 100 100%

Interpretation:

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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.

CHAPTER7

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FINDINGS & SUGGESTIONS

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.

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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.

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.

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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.

CHAPTER8

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LIMITATIONS

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

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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

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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

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).

Excellent V. Good Good Fair Poor

1 2 3 4 5

a) Show room ambience

b) Distance

c) Appeal

d) Reception (Proper Planning)

e) Any other (please specify)…..

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

Excellent V. Good Good Fair Poor

1 2 3 4 5

a) Sales personnel knowledge (about product)

b) Experience about Technical knowledge

c) Behaviour

d) Handling queries / problems

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

Excellent V. Good Good Fair Poor

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 VALUAB

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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