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Customer Delight:
     CRM
        &
Logistics Interface
 Presented at MDP organised by Management Development Center & UPES DEhradun

                                                                        Dabur Consumer Health
CRM
•C USTOMER
•R ELATIONship
•M ANAGEMENT

                 Dabur Consumer Health
RELATIONship
   BETWEEN
   COMPANY AND C&FA
   C&FA AND STOCKIEST
STOCKIeST AND TRADE TRADE
     TO THE CONSUMER




                       Dabur Consumer Health
Relationship marketing
Moving from a ‘transactional’ model of
marketing to a ‘relationship’ model


                    Advocate
                                      Emphasis
                                         On
                                         on
                    e
                    Supporter         developing
                                      s and
                                         n
                                      enhancing
                                      Enhancing
    Emphasis        r Client          g
      on new                         relationships
                                         d
    Customers
    customers                         (customer
                                      g
    s                t
                    Customer
    (customer
      new                            s keeping)
    scatching)                        r
                    rProspect          )
    r
     )
                    t


                                         Dabur Consumer Health
What is relationship
        marketing ?
• Marketing designed to
  create, maintain, and
  enhance strong relationships
  with customers and other
  stakeholders


                         Dabur Consumer Health
CRM vs Relationship Marketing:

• CRM develops a customer strategy and introduce
  segmentation to allow those requirements to be
  fulfilled
• CRM may mean radical changes on many levels in
  the organisation
• Chances of failure are reduced if some basic pitfalls
  are avoided
• Relationship marketing does not have to be
  technology intensive
                                             Dabur Consumer Health
Why is it important?

• It costs five times as much to attract a new
  customer as it does to keep a current one
  satisfied.
• It is claimed that a 5% improvement in customer
  retention can cause an increase in profitability of
  between 25 and 85 percent depending on the
  industry.
• Likewise, it is easier to deliver additional
  products and services to an existing customer
  than to a first-time “buyer.”


                                            Dabur Consumer Health
Customer Lifetime Value

• Losing an existing customer
  means losing the entire
  revenue stream that
  customer represents – not
  just that single encounter or
  sale.

                           Dabur Consumer Health
WHO IS CUSTOMER ?

• IS HE DELIGHTED ?




                  Dabur Consumer Health
WHO IS THE CUSTOMER: DEFINITION

• The next person (individual of function / group) in the work
  place, the receiver of output and the next to act on it.
A customer may be either external or internal.
• External customers are those who buy our products /
  services.
• Internal customers are individuals / departments who use
  our outputs as their input and we become their suppliers.

• In an organization, all of us are both supplier and
  customers to one another like a chain.




                                                        Dabur Consumer Health
the Customer wants…………..
• Right Quality

• Right Quantity

• Right Time

• Right Cost
                       Dabur Consumer Health
“ A Customer is the most
Important visitor on our premises
He is not dependent on us
We are dependent on him.

        He is not an interruption to our work
        He is the purpose of it
He is not an outsider in our business.
He is a part of it.
        We are not doing him a favour
        by serving him
        He is doing us a favour by giving us an
        opportunity to do so.”

                   Mohandas K. Gandhi



                                    Dabur Consumer Health
CRM – A DEFINITION
• CRM is an integrated organizational
  approach in delighting customers (both
  external and internal) by meeting their
  expectation on a continuous basis
  through everyone involved with the
  organisation working on continuous
  improvement in all products, services and
  processes along with proper problem
  solving methodology.

                                    Dabur Consumer Health
Attracting, retaining and
      growing customers
• Customer delivered value – the
  difference between total customer
  value and total customer cost.
   – Value includes product, services,
     personnel and image value.
   – Cost includes monetary, time,
     energy and psychic costs.

                                Dabur Consumer Health
Customer satisfaction
• The extent to which a product or service‟s
  perceived performance matches a buyer‟s
  expectations.
• What are expectations based on?
   – Past buying experiences
   – Friends, family and other associates
   – Information about the competition
   – Promises made in marketing materials
     (your brand)

                                     Dabur Consumer Health
Customer loyalty & retention

• Highly satisfied customers are:
  – Less price sensitive
  – More likely to talk favorably about
    you
  – More likely to refer you to others
  – Remain loyal for longer


                                 Dabur Consumer Health
CRM Stakeholders:
•   Advertising agencies
•   Call centers
•   Company employees
•   CRM vendors.
•   Consultants
•   CRM developers
•   Marketing
•   Sales
•   Telecom hardware vendors
•   Legal counsel              Dabur Consumer Health
Risk of CRM Implementation
              Failure:
•   Vendor failure
•   Customer Rejection
•   Cost overruns
•   Time overruns
•   Disruption of service
•   Internal rejection
•   Evolving standards
•   Shifting customer expectations
•   General Economic Slowdown
•   New Technology

                                     Dabur Consumer Health
COST EFFECTIVE TRANSPORTATION

• Minimize number of transporters.
• Give CRM inputs to transporters.
• Use appropriate size of vehicles for cost effectiveness.
• Reduce vehicle waiting time at plant.
• Use dedicated single transporter exclusively working for the
  organization.
• Work out PDP & monitor the performance
• Negotiate Rs./Km. instead of Rs./Kg. with dedicated
  transporters.
• Consolidate materials at regional locations for better utilisation
  of trucks.


                                                          Dabur Consumer Health
Stockiest Retention

        Sales


                Customers Retained

                Customers Shifted

                Changed as un
                attended
                Adding New
                Customers




                       Dabur Consumer Health
STOCKIEST RETENTION

• Incentivizing Stockiest on regular basis to retain them.

• Offering best Quality Products and generating market pull.

• Fast processing of claims thru hassle free procedures.

• Drishti installed at stockiest covering 80% of business.

• Setup COP unit to minimize order processing at C&FA‟s.




                                                     Dabur Consumer Health
Employee Retention

• Survey on total employee satisfaction in 2005 among the
  leading FMCG Companies.
  Dabur listed in Top 3 FMCG groups and awarded with
           „DABUR‟ A GREAT PLACE TO WORK

• Long Service Awards for Employees




                                                  Dabur Consumer Health
APPROACHES
TRADITIONAL                  crm

 Assume Customers         Study Customer Need
      Need


                         SPCIFY Verify Throughly
    SPCIFY Verify         by searching Problems


  Produce Estimate       Produce Right Quality
       Quality


    Education to           Listen and attend to
     Customer                   Customer



 Face Major Problems      Face Minor Problems


  Fix Problems By          Fix Problems By Up
Down Stream Initiation       Stream Initiation


                                                  Dabur Consumer Health
AROUND THE DABUR IN
14 MINUTES AVSEQ01.DAT
                  Dabur Consumer Health
OUR GROWTH STRATEGY
               EXPAND




ACQUIRE                          INNOVATE


    The underlying thread of strategy is:

              “PEOPLE”
                                       Dabur Consumer Health
Dabur At-a-Glance

Dabur India Limited has marked its presence
with some very
significant achievements and today
commands a market leadership
 status.Our story of success is based on
dedication to nature,
 corporate and process hygiene, dynamic
leadership and commitment
 to our partners and stakeholders. The results
of our policies and
 initiatives speak for themselves.
                                       Dabur Consumer Health
• Leading consumer goods company in India with 4th largest
  turnover of Rs.4110 Crore (FY10-11)

• 6 major strategic business units
• Home And Personal Care (HPC) Oral Care (OC) Health Care
  (HC) Ayurvedic (AYU) Fem (Fem) Foods (FOODS)

• 3 Subsidiary Group companies -Dabur International & newu
• 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur
  Egypt Ltd (Egypt), Asian Consumer Care
  (Bangladesh), Asian Consumer Care (Pakistan), African
  Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-
  UAE), Weikfield International (UAE) and Jaquline Inc. (USA).

• 17 ultra-modern manufacturing units spread around the
  globe

• Products marketed in over 60 countries
                                                    Dabur Consumer Health
• Wide and deep market penetration with 50 C&F agents,
 more than 5000 distributors and over 2.8 million retail outlets
 all over India

 Strategic positioning of Honey as food product,
leading to market leadership(over 75%) in branded honey market


Dabur Chyawanprash the largest selling Ayurvedic medicine
with over 65% market share.

Vatika Shampoo has been the fastest selling shampoo brand in India for
three years in a row

Hajmola tablets in command with 60% market share of digestive tablets
category.

About 2.5 crore Hajmola tablets are consumed in India every day

Leader in herbal digestives with 90% market share
                                                                   Dabur Consumer Health
DABUR DOCTORS MEET




                     Dabur Consumer Health
DABUR HEALTH CAMPS




                     Dabur Consumer Health
LEADING VAID HONOUR




                  Dabur Consumer Health
DABUR TRAINING SESSION




                    Dabur Consumer Health
Manufacturing Units

•   Narendrapur (WB)         •   Katni (MP)
•   Sahibabad (UP)           •   Beergunj (Nepal)
•   Alwar (Rajasthan)        •   Zabel-ali (Dubai)
•   Baddi (HP)               •   Kalyani (WB)
•   Rudrapur (Uttaranchal)   •   Ramadan (Egypt)




                                                     Dabur Consumer Health
Established   :   December 1979
Our People are our Strength
                   Established                  :   Dec. 1979
                   Strength                     :        155
                          Scientists            :        138
                          Consultants           :        06
                          Admin. Staff.         :        18

   BAMS/MDs                                  Oil Technologists
   MBBS/MDs                                  Food Technologists
   Pharmacists (M.Pharms/Ph.Ds)              Information Scientists
   Chemists (M.Sc./Ph.Ds)                    Oncologists
   Botanists                                 Plant Tissue Culturists
   Agronomists                               Animal Tissue Culturists
   Biotechnologists                          Pharmacologists
Research Areas


Ayurvedic Drug Research     Agronomy

Pharmaceutical Research     Biotechnology
Clinical Research
                            Analytical Development
Phytopharmaceuticals
                            Synthetic Chemistry
Personal Care Products
                            New Drug & Peptide Research
Oncology Research

CGMP/Regulatory Affairs     Food Technology

                            Veterinary Health



                                                     Dabur Consumer Health
DRF Affiliations...

   DSIR, Government of India
   Expert Committee on Herbal Medicines
   Bureau of Indian Standards
   Working Group of I.P.
   Drug Technical Advisory Board, Ministry of H & FW
   Member, Ayurvedic Pharmacopoeia Committee
   Scientific Committee, Indian Herbal Pharmacopoeia
   National Bio-diversity Board, Dept. of Biotechnology
   AAPS, USA
   Professional Bodies/Associations




                                                           Dabur Consumer Health
Our Partners in Clinical Research
36 Medical Colleges & Teaching Hospitals

Some Prestigious ties

     – All India Institute of Medical Sciences, New Delhi
     – Institute of Medical Sciences, BHU, Varanasi
     – JIPMER, Pondicchery
     – MGIMS, Sewagram, Wardha
     – Seth GS Medical College & KEM Hospital, Mumbai
     – Central Drug Research Institute, Lucknow
     – PG Institute of Basic Medical Sciences, Calcutta
     – Apollo Group Hospitals, Chennai & New Delhi




                                                            Dabur Consumer Health
Thus Dabur Products Offer…….

Quality

      Safety

               Efficacy




                          Dabur Consumer Health
1884 - 2009


•   Dabur AV.mpg
                     Dabur Consumer Health

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Customer Delight - CRM and Logistics Interface

  • 1. Customer Delight: CRM & Logistics Interface Presented at MDP organised by Management Development Center & UPES DEhradun Dabur Consumer Health
  • 2. CRM •C USTOMER •R ELATIONship •M ANAGEMENT Dabur Consumer Health
  • 3. RELATIONship BETWEEN COMPANY AND C&FA C&FA AND STOCKIEST STOCKIeST AND TRADE TRADE TO THE CONSUMER Dabur Consumer Health
  • 4. Relationship marketing Moving from a ‘transactional’ model of marketing to a ‘relationship’ model Advocate Emphasis On on e Supporter developing s and n enhancing Enhancing Emphasis r Client g on new relationships d Customers customers (customer g s t Customer (customer new s keeping) scatching) r rProspect ) r ) t Dabur Consumer Health
  • 5. What is relationship marketing ? • Marketing designed to create, maintain, and enhance strong relationships with customers and other stakeholders Dabur Consumer Health
  • 6. CRM vs Relationship Marketing: • CRM develops a customer strategy and introduce segmentation to allow those requirements to be fulfilled • CRM may mean radical changes on many levels in the organisation • Chances of failure are reduced if some basic pitfalls are avoided • Relationship marketing does not have to be technology intensive Dabur Consumer Health
  • 7. Why is it important? • It costs five times as much to attract a new customer as it does to keep a current one satisfied. • It is claimed that a 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent depending on the industry. • Likewise, it is easier to deliver additional products and services to an existing customer than to a first-time “buyer.” Dabur Consumer Health
  • 8. Customer Lifetime Value • Losing an existing customer means losing the entire revenue stream that customer represents – not just that single encounter or sale. Dabur Consumer Health
  • 9. WHO IS CUSTOMER ? • IS HE DELIGHTED ? Dabur Consumer Health
  • 10. WHO IS THE CUSTOMER: DEFINITION • The next person (individual of function / group) in the work place, the receiver of output and the next to act on it. A customer may be either external or internal. • External customers are those who buy our products / services. • Internal customers are individuals / departments who use our outputs as their input and we become their suppliers. • In an organization, all of us are both supplier and customers to one another like a chain. Dabur Consumer Health
  • 11. the Customer wants………….. • Right Quality • Right Quantity • Right Time • Right Cost Dabur Consumer Health
  • 12. “ A Customer is the most Important visitor on our premises He is not dependent on us We are dependent on him. He is not an interruption to our work He is the purpose of it He is not an outsider in our business. He is a part of it. We are not doing him a favour by serving him He is doing us a favour by giving us an opportunity to do so.” Mohandas K. Gandhi Dabur Consumer Health
  • 13. CRM – A DEFINITION • CRM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectation on a continuous basis through everyone involved with the organisation working on continuous improvement in all products, services and processes along with proper problem solving methodology. Dabur Consumer Health
  • 14. Attracting, retaining and growing customers • Customer delivered value – the difference between total customer value and total customer cost. – Value includes product, services, personnel and image value. – Cost includes monetary, time, energy and psychic costs. Dabur Consumer Health
  • 15. Customer satisfaction • The extent to which a product or service‟s perceived performance matches a buyer‟s expectations. • What are expectations based on? – Past buying experiences – Friends, family and other associates – Information about the competition – Promises made in marketing materials (your brand) Dabur Consumer Health
  • 16. Customer loyalty & retention • Highly satisfied customers are: – Less price sensitive – More likely to talk favorably about you – More likely to refer you to others – Remain loyal for longer Dabur Consumer Health
  • 17. CRM Stakeholders: • Advertising agencies • Call centers • Company employees • CRM vendors. • Consultants • CRM developers • Marketing • Sales • Telecom hardware vendors • Legal counsel Dabur Consumer Health
  • 18. Risk of CRM Implementation Failure: • Vendor failure • Customer Rejection • Cost overruns • Time overruns • Disruption of service • Internal rejection • Evolving standards • Shifting customer expectations • General Economic Slowdown • New Technology Dabur Consumer Health
  • 19. COST EFFECTIVE TRANSPORTATION • Minimize number of transporters. • Give CRM inputs to transporters. • Use appropriate size of vehicles for cost effectiveness. • Reduce vehicle waiting time at plant. • Use dedicated single transporter exclusively working for the organization. • Work out PDP & monitor the performance • Negotiate Rs./Km. instead of Rs./Kg. with dedicated transporters. • Consolidate materials at regional locations for better utilisation of trucks. Dabur Consumer Health
  • 20. Stockiest Retention Sales Customers Retained Customers Shifted Changed as un attended Adding New Customers Dabur Consumer Health
  • 21. STOCKIEST RETENTION • Incentivizing Stockiest on regular basis to retain them. • Offering best Quality Products and generating market pull. • Fast processing of claims thru hassle free procedures. • Drishti installed at stockiest covering 80% of business. • Setup COP unit to minimize order processing at C&FA‟s. Dabur Consumer Health
  • 22. Employee Retention • Survey on total employee satisfaction in 2005 among the leading FMCG Companies. Dabur listed in Top 3 FMCG groups and awarded with „DABUR‟ A GREAT PLACE TO WORK • Long Service Awards for Employees Dabur Consumer Health
  • 23. APPROACHES TRADITIONAL crm Assume Customers Study Customer Need Need SPCIFY Verify Throughly SPCIFY Verify by searching Problems Produce Estimate Produce Right Quality Quality Education to Listen and attend to Customer Customer Face Major Problems Face Minor Problems Fix Problems By Fix Problems By Up Down Stream Initiation Stream Initiation Dabur Consumer Health
  • 24. AROUND THE DABUR IN 14 MINUTES AVSEQ01.DAT Dabur Consumer Health
  • 25. OUR GROWTH STRATEGY EXPAND ACQUIRE INNOVATE The underlying thread of strategy is: “PEOPLE” Dabur Consumer Health
  • 26. Dabur At-a-Glance Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status.Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves. Dabur Consumer Health
  • 27. • Leading consumer goods company in India with 4th largest turnover of Rs.4110 Crore (FY10-11) • 6 major strategic business units • Home And Personal Care (HPC) Oral Care (OC) Health Care (HC) Ayurvedic (AYU) Fem (Fem) Foods (FOODS) • 3 Subsidiary Group companies -Dabur International & newu • 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah- UAE), Weikfield International (UAE) and Jaquline Inc. (USA). • 17 ultra-modern manufacturing units spread around the globe • Products marketed in over 60 countries Dabur Consumer Health
  • 28. • Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India Strategic positioning of Honey as food product, leading to market leadership(over 75%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day Leader in herbal digestives with 90% market share Dabur Consumer Health
  • 29. DABUR DOCTORS MEET Dabur Consumer Health
  • 30. DABUR HEALTH CAMPS Dabur Consumer Health
  • 31. LEADING VAID HONOUR Dabur Consumer Health
  • 32. DABUR TRAINING SESSION Dabur Consumer Health
  • 33. Manufacturing Units • Narendrapur (WB) • Katni (MP) • Sahibabad (UP) • Beergunj (Nepal) • Alwar (Rajasthan) • Zabel-ali (Dubai) • Baddi (HP) • Kalyani (WB) • Rudrapur (Uttaranchal) • Ramadan (Egypt) Dabur Consumer Health
  • 34. Established : December 1979
  • 35. Our People are our Strength  Established : Dec. 1979  Strength : 155  Scientists : 138  Consultants : 06  Admin. Staff. : 18  BAMS/MDs  Oil Technologists  MBBS/MDs  Food Technologists  Pharmacists (M.Pharms/Ph.Ds)  Information Scientists  Chemists (M.Sc./Ph.Ds)  Oncologists  Botanists  Plant Tissue Culturists  Agronomists  Animal Tissue Culturists  Biotechnologists  Pharmacologists
  • 36. Research Areas Ayurvedic Drug Research Agronomy Pharmaceutical Research Biotechnology Clinical Research Analytical Development Phytopharmaceuticals Synthetic Chemistry Personal Care Products New Drug & Peptide Research Oncology Research CGMP/Regulatory Affairs Food Technology Veterinary Health Dabur Consumer Health
  • 37. DRF Affiliations...  DSIR, Government of India  Expert Committee on Herbal Medicines  Bureau of Indian Standards  Working Group of I.P.  Drug Technical Advisory Board, Ministry of H & FW  Member, Ayurvedic Pharmacopoeia Committee  Scientific Committee, Indian Herbal Pharmacopoeia  National Bio-diversity Board, Dept. of Biotechnology  AAPS, USA  Professional Bodies/Associations Dabur Consumer Health
  • 38. Our Partners in Clinical Research 36 Medical Colleges & Teaching Hospitals Some Prestigious ties – All India Institute of Medical Sciences, New Delhi – Institute of Medical Sciences, BHU, Varanasi – JIPMER, Pondicchery – MGIMS, Sewagram, Wardha – Seth GS Medical College & KEM Hospital, Mumbai – Central Drug Research Institute, Lucknow – PG Institute of Basic Medical Sciences, Calcutta – Apollo Group Hospitals, Chennai & New Delhi Dabur Consumer Health
  • 39. Thus Dabur Products Offer……. Quality Safety Efficacy Dabur Consumer Health
  • 40. 1884 - 2009 • Dabur AV.mpg Dabur Consumer Health