Market analysis of Zero billing ClientsA PROJECT REPORT ON “CUSTOMER SATISFACTION SURVEY (INACTIVE CORPORATE CUSTOMERS) OF SAFEXPRESS IN NOIDA AND GHAZIABAD” Undertaken at Project Report Submitted To Balaji Institute of Modern Management (BIMM) Pune In Partial Fulfilment of the PGDM (Sales and Marketing) Curriculum for Academic Year 2016-2018 By Bhavesh Chandra Roy (BIMM-1618136) SALES AND MARKETING 1 Market analysis of Zero billing Clients Declaration I, BHAVESH CHANDRA ROY, Student of BIMM – Balaji Institute of Modern Management, Pune, hereby declare that this project entitled “CUSTOMER SATISFACTION SURVEY (INACTIVE CORPORATE CUSTOMERS) OF SAFEXPRESS IN NOIDA AND GHAZIABAD” for Safexpress Logistics and Supply chain management, is a bonafide record of work done by me during the course of summer internship project work of PGDM program and all contents and facts are prepared and presented by me without any bias. I also declare that it has not previously formed the basis for the award to me for any degree/diploma associate ship, fellowship or other similar title, of any Institute/Society. Date: 30 June 2017 SALES AND MARKETING 2 Market analysis of Zero billing Clients CERTIFICATE SALES AND MARKETING 3 Market analysis of Zero billing Clients Acknowledgement I would like to acknowledge all those who have been instrumental in shaping up this project with their guidance and inspiration. I feel immense pleasure in expressing my sincere thanks and deep sense of gratitude to Mr. Sanjay Raj for his time and valuable efforts. He constantly encouraged me right from the selection of the title to final preparation of my project. He has been a constant source of knowledge, information, help and motivation for me. I am thankful for his constant inspiration and guidance throughout the project. I express my sincere thanks to Mr. Sandeep Dham for giving me an opportunity to work with him through this project. I take this opportunity to express my profound sense of gratitude whose sincere co-operation and guidance enabled the project to assume its systematic shape. I am also thankful to the Retail team, HR of Safexpress Pvt. Ltd., whose insights were of great help in arriving at the findings. SALES AND MARKETING 4 Market analysis of Zero billing Clients Preface A Project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. The study can deal with small or big issues in any division of an organisation. It can be case study where a problem has been dealt with, through the process of management. The essential equipment of a project is that, it should contain scientific collection of data, analysis and interpretation of data leading to valid conclusion. Summer Training is an essential part in PGDM curriculum. It enables the student to share the real experience in the industry. For my summer training I was placed in Safexpress for the period of eight weeks in Noida and Ghaziabad region of Uttar Pradesh. I underwent the project under the heading “CUSTOMER SATISFACTION SURVEY (INACTIVE CORPORATE CUSTOMERS) OF SAFEXPRESS IN NOIDA AND GHAZIABAD” This Project report tends to give a sharp picture of the different parameters which affects the dealer’s decision for selecting a logistics and supply chain management company. I hope, this study can be helpful in understanding the reasons behind customer inconsistency and can help Safexpress in gaining back a few customers. SALES AND MARKETING 5 Market analysis of Zero billing Clients TABLE OF CONTENTS Chapter No Topic Page No. 1 CONTEXTUAL BACKGROUND A. Brief introduction of the Company 8-9 B. Industry and Market conditions 10-12 C. Product or Service being studied 13-14 D. STP and SWOT 15-16 17 E. Purpose of study with Objectives 2 LITERATURE REVIEW 18-21 3 RESEARCH METHODOLOGY 22-23 A. Research Design for primary data collection B. Primary data and Secondary data C. Sampling Method D. Sample Size E. Research Instrument used F. Processing and collection of data G. Statistical or Analytic Techniques used 4 Data Analysis and Interpretation 24-35 5 Summary Finding(s) of the study 36 37 Recommendation(s) Limitation(s) of the study 37 6 Bibliography/Courses/References 37 Appendix 38-40 SALES AND MARKETING 6 Market analysis of Zero billing Clients Executive Summary This Project entitled “customer satisfaction survey (inactive corporate customers) of safexpress in noida and ghaziabad”, starts with a rationale behind preparing the report, objective, a brief history of the company and covers a variety of topics, such as competitor analysis, customer’s satisfaction and its gaps. The project was focused on the study and analysis of data collected from the customers who are dealing with various companies in the logistics and supply chain industry. The purpose was to know the importance level of various parameters which affects the customer satisfaction, knowing the parameters on which the company lacks, satisfaction level of customer with Safexpress, improvement areas for Safexpress. Factors like Rate per consignment, transit time, documentation & other formalities required, post transaction services are few of the determinants of customer’s satisfaction and consistency. During my two months internship, I went to 85 companies and interviewed the concerned person through a questionnaire. The data was collected in the Noida and Ghaziabad region, which reveals some facts about the brand image of Safexpress in the minds of the customers and satisfaction derived by them. At last I have concluded the report with the interpretation of the data and information collected is presented with the help of the charts and diagrams. SALES AND MARKETING 7 Market analysis of Zero billing Clients Chapter 1 Introduction A. A brief introduction to Safexpress and Indian logistics industry Company Background Safexpress began its journey in 1997 with a mission of delivering logistics excellence to its customers and ensuring their success. Today, the firm has firmly entrenched itself as the 'Knowledge Leader' and 'Market Leader' of supply chain & logistics industry in India. Safexpress offers a wide range of innovative supply chain services including Express Distribution, 3PL and Consulting. The firm provides value-added logistics services for 9 different business verticals ranging from Apparel & Lifestyle, E-commerce, Healthcare, Hi-Tech, Publishing to Automotive, Engineering & Electrical Hardware, FMCG & Consumer Electronics and Institutional. Safexpress offers cutting-edge logistics solutions to its customers, enabling them to focus on their core competencies. The firm adds maximum value to businesses at every level, right from providing world-class warehousing support to ensuring time-definite deliveries of goods anywhere in India. Over 610 destinations, spread across 36 states and union territories of India. Over 4500 GPS-enabled, all weather-proof, containerized vehicles on more than 1000 routes, linked through 48 hubs and mega hubs. Delivering more than 80 million packages a year. Traversing over 6,00,000 kilometres a day. SALES AND MARKETING 8 Market analysis of Zero billing Clients Vision "To revolutionize the Supply Chain & Logistics industry in India and consequently contribute to the growth of our economy. By way of our unsurpassable expertise in providing Value-added Supply Chain & Logistics services, we will enhance our 'Knowledge Leadership' and 'Market Leadership'". Mission "We shall adopt and internalize a work culture which demonstrates a 'We Can We Will' attitude to reflect in our daily responsibilities so as to far exceed our objectives, consistently striving towards market dominance. We will create historical landmarks forming a strong edifice for the future overcoming all obstacles proactively, as our personal responsibility and commitments are to create delight for the customer with impeccable personalized services". We believe in nurturing a healthy Relationship with our people, partners and customers. We constantly strive to Evolve from an 'Effort-based Organization' to a 'Result-based Organization'. We ensure that our Self-Discipline allows a complete ownership and accountability of our work as well as compliance to our policies and processes. SALES AND MARKETING 9 Market analysis of Zero billing Clients INDUSTRY AND MARKET SCENARIO Logistics is regarded as the backbone of the economy, providing efficient and cost effective flow of goods on which other commercial sectors depend. Logistic industry in India is evolving rapidly, it is the interplay of infrastructure, technology and new types of service providers, which defines whether the logistic industry is able to help its customers reduce their costs in logistic sector and provide effective services. Despite of the weak economic sentiments, the logistics industry continues to witness growth due to the growth in retail, e-commerce and manufacturing sectors. The Global Logistics sector was expected to grow 10-15% in the period 2013-14. Logistics industry is expected to reach over USD 2 billion by 2019. Rise of e-commerce logistics and increased domestic consumption will lead the way for the industry in the coming years. With a promise of growth and improvements, the service oriented logistics industry is ready to expand beyond the horizons in the latter half of this decade. Supply chain costs in India represent as much as 13 percent of the GDP. This is almost double the percentage in developed countries: in the U.S., supply chain costs amount to 8.5 percent of the GDP. ARC Advisory Group categorizes supply chain challenges in India into two groups: demand side challenges and supply side challenges. SALES AND MARKETING 10 Market analysis of Zero billing Clients Future prospects The logistics firms are moving from a traditional setup to the integration of IT and technology to their operations to reduce the costs incurred as well as to meet the service demands. The growth of the Indian logistics sector depends upon its soft infrastructure like education, training and policy framework as much as the hard infrastructure. To support India’s fast paced economy growth of logistics industry is very essential. It is estimated that the Indian logistics industry will continue to show robust growth of 10-15% annually, leading the pace of growth of the economy at large. The global economic outlook, indeed that of India is expected to significantly improve as India Inc begins to tackle the economic downturn. With the current government many policies are expected to be implemented which will give a fresh impetus to India’s growth engine particularly in the corporate and SME sector which in turn will expand demand for the logistics sector. With the implementation of GST, the logistics companies, which are currently forced to set up many small warehouses across multiple cities can set up just a few, big warehouses region wise and can follow the hub-and-spoke model for freight movement from the warehouses to the different manufacturing plants, wholesale outlets, retail outlets and the various POS. This growth is backed by the boom in the e-commerce sector and expansionary policies of the FMCG firms. This has increased the service geography of the logistics firms but they also have to meet the demands of quick delivery and tight service level agreements. The industry has moved from being just a service provider to the position which provides end to end supply chain solutions to their customers. Thus, all this has paved the way for further growth of Logistics and Warehousing industry in the coming years. SALES AND MARKETING 11 Market analysis of Zero billing Clients SALES AND MARKETING 12 Market analysis of Zero billing Clients SERVICES BEING STUDIED Surface A pioneer in Express Distribution, Safexpress continues to innovate its offerings. We ensure time-definite deliveries through our robust network supported by 'hub and spoke' model, which is intended to minimize the distance travelled. This offering enables 'just in time' and lean supply chain requirements of the customers. This service also allows them to plan their in transit inventory – an important input for advanced materials and distribution requirements planning. We fully utilize our infrastructure, technology resources, research and development, network, fleet and our ecosystem of partners to provide an unrivalled fastest transit time in the industry. KEY FEATURES OF THE SERVICE ARE Fastest transit-time in the industry Largest Supply Chain Network Guaranteed On-time Door-to-Door Express Delivery Largest fleet of 4000 vehicles in the Industry ISO-9002 certified, all-weather-proof, containerized vehicles Multi-modal freight services with varied customized solutions State-of-the-art Hub & Spoke Model Advanced 'Track and Trace' facility 24 x 7, 365 days a year operations SALES AND MARKETING 13 Market analysis of Zero billing Clients Dedicated, well trained and experienced workforce Longest direct haul network in India, with direct routes running between strategic locations Proactive clearance of Octroi& Entry Taxes to provide seamless transfer of goods Proactive reporting and online track & trace to ensure pin-point accuracy in delivery schedule Safe Air Safe Air is our specialized air service that complements the surface logistics in offering optimal multimodal solutions and faster deliveries. Our experience in surface and air network design results in cost effective routing of valuable air- worthy cargo This door-to-door pickup and delivery service is backed by 20 state-of-the-art air hubs. Air cargo requires a careful handling due to its subtle and time sensitive nature. A dedicated team of specialized air freight experts man these hubs 24x7. This team has expertise and experience in completing the various documentation formalities required for different product categories across different airlines travelling to different states. SALES AND MARKETING 14 Market analysis of Zero billing Clients STP and SWOT of Safexpress SAFEXPRESS Segment Businesses with transportation needs Diverse business verticals like Apparel & Lifestyle, Healthcare, Hi-Tech, Publishing, Automotive, Engineering & Electrical Hardware, FMCG & Consumer Target Group Electronics, and Institutional 'Market Leader' and 'Knowledge Leader' of the Indian Positioning Supply Chain & Logistics Industry SWOT Analysis 1. Credit & Retail basis pricing strategy 2. Good brand presence in India 3. It has great amount of Creative Service ideas 4. “Largest Logistics service Provider in India” by Limca Book of Records in 2002 5. Has a reach to all 627 districts in 35 states and union territories in India 6. It has more than 3600 GPS-equipped all-weather proof, Strengths containerized vehicles 1.Marketing and advertising is lesser than global brands Weaknesses 2.Lower adoption of advanced technology SALES AND MARKETING 15 Market analysis of Zero billing Clients 1.Diversification in more innovative services 2.Increasing firms in manufacturing industry 3.It has 3600 weather proof ISO-9002 vehicles which can be Opportunities used for increasing range of services 1.Big competitors with advanced technology 2.Unorganised transportation sector 3.Entry and penetration of international players and domestic Threats players Competition 1. Gati 2.DHL Competitors 3.Blue Dart SALES AND MARKETING 16 Market analysis of Zero billing Clients D. Purpose of Study/Research Question: Customer Satisfaction Survey (Inactive Corporate Customers) E. Objectives: Primary Objective To understand the reasons due to which certain customers of Safexpress have become inactive. Secondary Objective To understand the behaviour of inactive retail customer of Safexpress To examine the performance of Safexpress in the market. To determine the factors that influence the dealers decisions while selecting a logistics company To give effective suggestions to improve the market performance of retail sector of Safexpress. F. VARIABLES: INDEPENDENT VARIABLES Rate per consignment Transit time Documentation required Services DEPENDENT VARIABLE Customer Satisfaction SALES AND MARKETING 17 Market analysis of Zero billing Clients CHAPTER-2 LITERATUTRE REVIEW Companies today can’t afford to lose their customer base and repeat business. While focusing on new customer acquisition should always be a goal, it can cost 7 times more to gain a new customer than retaining a current one. Brands that excel at winning repeat business get 76% of their revenue from repeat customers (RJ Metrics). It’s easier to sell to your existing customers than it is to sell to new customers. However, the inevitable attrition occurs for the majority of brands. A marketer typically has a list of customers, with as many as 25-50% of these people classified as “inactive”. These inactive buyers no longer need to sit dormant, there is an option to reactivate these opt-in consumers and drive additional revenue. By every measure, reactivation pays tremendous dividends when well executed, demonstrating that successful brands must view reactivation as an ongoing strategic tool rather than a one-and-done activity. When it comes to both customer acquisition and retention, email ranks higher than any other strategy according to Target Marketing’s Media Usage Survey. According to eMarketer, email is also cited as the most effective digital marketing channel for customer retention in the U.S., while also serving as the foundation of the marketing-to-sales funnel for the majority of B2B and B2C marketers. According to Ruth Stevens as marketing advances, most professionals are well aware by now of the importance of retention and reactivation in optimizing the value of the customer base. The facts are clear: we know that it costs far less to reactivate a dormant customer than to acquire an entirely new one; we know that SALES AND MARKETING 18 Market analysis of Zero billing Clients recent activity is a powerful indicator of customer lifetime value; and we know that investments in retention marketing deliver the highest ROI of any strategy. But some marketers may still be missing out of some of today’s best practices in reactivation marketing. Let’s review the strategies that are most effective in stimulating a renewed relationship with your dormant customers, and reducing customer defection and churn. Reactivation marketing applies to all kind of product and services categories, from consumer to business markets. The tactics and tools have been developed and refined to a fine art in the area of subscriptions and replenishment types of marketing. Let us learn from these trailblazers. If you need backup to justify your investment in customer reactivation, here are some useful stats: A 5-point decrease in defections can lift per-customer profit by 25% to 85% (Reichheld, The Loyalty Effect) Retaining an additional 2% of customers has the same effect as cutting costs 10% (Davidow and Malone, The Virtual Corporation) It is 4.8 times cheaper to sell to a pre-existing inquirer than to generate a new lead (Aberdeen Group research) Reactivation can be viewed as a subset of retention marketing. If a customer has stopped interacting with you, this is very likely an early indicator of upcoming customer loss, or defection. So it’s essential to identify the signals early, and set up intervention activity to prevent the customer from moving further away. SALES AND MARKETING 19 Market analysis of Zero billing Clients Before you can plan your best intervention tactics, you need to develop answers to several key questions: 1. How should you determine the definition of inactivity in your business? For many, the end result of inactivity is known as “churn.” The churn rate is derived from dividing the number of customers lost in the period by the number of customers you had at the beginning of the period. But the path to purchase differs with each business. Buying a new car is very different from replenishing your supply of moisturizer. This means identifying the interim metrics that you need to keep an eye on. A car dealer may look at oil changes as an indicator of engagement. A department store will look at such indicators as product purchase frequency and timing, with interim metrics like email open and click-through rates. 2. What are the reasons for customer dormancy? It may be that your customers had a problem with your product or service. In which case, you must strive to fix the problem. It may be that they no longer have a need. In which case, you need to determine whether there’s another way to serve them profitably. Or it may be that they have left for a competitor. In which case, you must institute a win-back effort. There are many possible reasons. A quick survey by email or phone will help you identify them. Each will likely require a different strategic approach. 3. Is the customer worth reactivating? Some customers simply cannot be served profitably. For them, it may be a better strategy to let go, instead of investing more in re-engagement. Thus, an assessment of projected customer value will help you determine the appropriate amount of reactivation investment, if any. SALES AND MARKETING 20 Market analysis of Zero billing Clients 4. How will you know success when you see it? For many companies, reactivation is measured by conversion to repurchase. A useful metric is the win-back rate, calculated as the number of reactivated customers divided by the number of inactive at the beginning of the period. For your business, the success metric may be something different. The point is to identify the most appropriate metric in advance, and track the results of your reactivation program over time. DATA DECAY Customer data decays at an alarming rate. Data decays at an average rate of 2 percent per month, which means you can expect 25 to 30 percent of your organization’s contact data to go bad each year under normal circumstances. People move, businesses change, people get new jobs, email conventions change, and the list goes on. SALES AND MARKETING 21 Market analysis of Zero billing Clients CHAPTER 3 THE RESEARCH METHODOLOGY a) INTRODUCTION The design of any research project requires a considerable attention to the research methods and the proposed data analysis. Within this section, I have attempted to provide some information about how to produce a research design for a study. I offer a basic overview of the research methods portion of a research proposal and then some data analysis templates for different types of designs. b) TYPE OF DATA Primary data: - Questionnaire The survey is conducted by making prior appointments with the respondents and visiting the respondents preferred location at his/her convenient timings. Then a face to face interview has been conducted and the questionnaire is filled up to collect the primary data for analysis. The questionnaire mainly had closed ended questions. c) RESEARCH DESIGN FOR PRIMARY DATA COLLECTION Research Design: - Descriptive Research Blend of Descriptive method has been used in this research for the collection of data. As the research is related to the study of customer activeness, which can more effectively be studied through direct questions personal interview and informal talks. Also, considering the time constraints, descriptive research leading to conclusive result is the most suitable design for this research. Target Population: The inactive retail customer of Safexpress were the targets. The person who used to take major business related decisions, was interviewed. SALES AND MARKETING 22 Market analysis of Zero billing Clients d) Sampling: - Convenience Sampling Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. In all forms of research, it would be ideal to test the entire population, but in most cases, the population is just too large that it is impossible to include every individual. This is the reason why most researchers rely on sampling techniques like convenience sampling, the most common of all sampling techniques. Many researchers prefer this sampling technique because it is fast, inexpensive, easy and subjects are readily available. e) Sample Size: The study is carried out in Noida & Ghaziabad region. This report has been done on the basis of the 85 samples collected. f) Research instrument used: Questionnaire g) Processing and collection of data: I visited inactive retail customers to get the questionnaire filled by them. h) Analysis: The analysis is done on the basis of the primary data and secondary data collected from internet. Then these data will be reviewed, correlated and analysed to come to any result. SALES AND MARKETING 23 Market analysis of Zero billing Clients CHAPTER-4 DATA ANALYSIS AND INTERPRETATION 1) Ranking of factors considered while selecting a logistics company. Statistical Test: Friedman test Variable and Measurement: Respondents are asked to tell how important the Following factors are while selecting a financing Company. 1. Transit Time 2. Pricing 3. Documentation required 4. Services Each factor was measured on a 5 point scale (1 = Most Important, 5 =Least Important) Test Hypothesis: H0: Factors influencing choice of a supply chain management and logistic company do not differ in magnitude of importance (mean ranks are equal). H1: Factors influencing choice of supply chain management and logistics company differ in magnitude of importance (mean ranks are not equal) Level of Significance: alpha (α) = 0.05 SALES AND MARKETING 24 Market analysis of Zero billing Clients Observations: TABLE: 1 Test Statisticsa N 85 Chi- 47.762 Square Df 3 Asymp. .000 Sig. TABLE: 2 a. Friedman Test Mean rank Transit Time 2.35 Pricing 2.75 Documentation 1.81 Formalities Services 3.09 SALES AND MARKETING 25 Market analysis of Zero billing Clients Conclusion Since the p value (0.000) is less than the level of significance 0.05, the null hypothesis is rejected. Hence it is concluded that factor influencing choice of logistics company significantly differ in magnitude of importance. Interpretation From the mean rank table we know that services with a mean rank 3.09 play the most important role for customers at the time of selecting a logistics company followed by pricing offered by the company and then transit time while documentation formalities is considered to be the least important. 2. Ranking the performance of Safexpress Statistical Test: Friedman Test Variable and Measurement: Respondents are asked to tell what they think about the performance of Safexpress on the following factors 1) Services 2) Pricing 3) Transit Time 4) Documentation Required Each factor was measured on a 5 point scale (1= highly dissatisfied, 5 highly satisfied) Test Hypothesis: H0: Factors affecting the level of satisfaction towards Safexpress do not differ in magnitude of importance (mean ranks are equal). H1: Factors affecting the level of satisfaction towards Safexpress differ in magnitude of importance (mean ranks are not equal). Level of Significance: alpha (α) = 0.05 SALES AND MARKETING 26 Market analysis of Zero billing Clients TABLE: 3 Test Statisticsa N 85 Chi-Square 17.146 Df 3 Asymp. Sig. .001 TABLE: 4 a. Friedman Test Ranks Mean Rank Services 2.30 Pricing 2.22 Transit Time 2.69 Documentation Required 2.79 Conclusion: Since the pvalue (0.000) is less than the level of significance 0.05, the null hypothesis is rejected. Hence it is concluded that factors affecting the level of satisfaction for Safexpress significantly differ in magnitude of importance. Interpretation: From the rank table, we can find that services have a mean rank of 2.30, pricing has a mean rank of 2.22, transit time has a mean rank of 2.69, documentation required 2.79. SALES AND MARKETING 27 Market analysis of Zero billing Clients 3) Chances of conversion of an inactive customer to an active customer once their complaints are resolved Statistical Test: Cross Tabulation Observation: Cross tabulation Reasons Rate Service business is issue Issue down other Total Conversion Yes 14 13 10 2 39 No 8 14 4 4 30 maybe 0 13 1 2 16 Total 22 40 15 8 85 Interpretation: Out of total 85 inactive customers 39 say that they are ready to become active if their issues are resolved. 16 are not sure about it and 30 are not ready to convert. SALES AND MARKETING 28 Market analysis of Zero billing Clients 4) To understand the reasons due to which certain customers of Safexpress have become inactive Graphical representation of data: Chart 1 Reason behind Inactiveness 18% 9% 47% 26% BUSINESS IS DOWN OTHERS RATE ISSUE SERVICE ISSUE INTERPRETATION 47% of customers rated service to be the main reason behind their inactiveness. While 26% have rate or pricing issues with the company 18% customers accept that due to a decline in their own business they have not been able to give business to Safexpress. SALES AND MARKETING 29 Market analysis of Zero billing Clients 4) To find out the share of other logistic players with whom the inactive customers of Safexpress are currently working CHART-2 WHO IS YOUR OTHER LOGISTICS PROVIDER? VRL DHL 12% 16% TCI 15% GATI 19% OTHERS 13% LOCAL TRANSPORTERS 25% INTERPRETATION 25% of total inactive customers say that they use local transporters to send their consignments, followed by 19% with Gati, 16% with DHL and 15% with TCI. SALES AND MARKETING 30 Market analysis of Zero billing Clients 5) The time period for which the customers were associated with Safexpress before becoming inactive CHART-3 Time Period Of Activeness 18% 21% 1-2 YEARS 15% 2-4YEARS LESS THAN A YEAR 46% MORE THAN 4 YEARS INTERPRETATION 46% of customers were active for a period of 2-4 years and then became inactive While 15% of customers didn’t like the services provided by safexpress in the initial stage only and thus became Inactive within a year. SALES AND MARKETING 31 Market analysis of Zero billing Clients 6) Monthly potential of inactive customers of Safexpress CHART-4 Monthly potential in terms of rupees 11% 7% 29% 22% 31% 100000 and above 10000-20000 20000-40000 40000-60000 60000-100000 INTERPRETATION 31% customers out of the total sample have a monthly business potential of Rupees 40000-60000 While 11% customers have the potential to give the business of more than 100000 per month SALES AND MARKETING 32 Market analysis of Zero billing Clients 7) To see whether resolving the complain/ claims of inactive customers will result in retaining the customers back or not CHART-5 If your complain/claim will be resolved, will you be interested in continuing the business? 35% Maybe 46% No Yes 19% INTERPRETATION 46% Customer agree that if their complain is resolved then they will be interested in doing the business again. SALES AND MARKETING 33 Market analysis of Zero billing Clients 8. Rating the overall performance of Safexpress CHART-6 Rate the performance of Safexpress on a scale of 1 to 5 (1 being least satisfactory & 5 being most) 33 35 28 30 25 20 16 15 10 5 3 5 0 1 2 3 4 5 INTERPRETATION 33 out of 85 customers have rated the overall performance of safe express as 3 out of 5. 16 out of 85 believe that the performance of Safexpress is below average SALES AND MARKETING 34 Market analysis of Zero billing Clients CHART-7 Will you refer Safexpress to others? 41% Maybe 42% No Yes 17% 42% of the total customers will refer Safexpress to others, 41% are not really sure about it and 17% won’t refer it to others. SALES AND MARKETING 35 Market analysis of Zero billing Clients CHAPTER-5 FINDINGS AND RECOMMENDATIONS 5.1 Finding 1. According to table number 1 service is the most important factor and the documentation required is the least important factor while selecting a logistics company. 2. From the table of cross tabulation we find that majority of inactive customers are ready to convert but there are still many customers who are not ready to convert even if the problem is resolved. 3. According to chart 1 majority of customers have become inactive due to service issues and the next most important reason is rate issues. 4. According to chart 2, 25% of the inactive customers are currently working with local transporters while GATI at 19% is the most used logistic player in the organised sector, while DHL, TCI and VRL are also strong competitors. 5. According to chart 3, 46% of the inactive customers were active for a period of 2 to 4 years but started facing issues after that. 6. Around 31% of inactive customers have a monthly potential of Rs 40000- 60000 and 11% have a monthly potential of more than Rs 100000. SALES AND MARKETING 36 Market analysis of Zero billing Clients 5.2 Recommendations 1. Work on an easy and unified pricing system through which customers can calculate their freight charges by themselves. 2. Work on attributes where Gati is positioned well. 3. Launch awareness drives for Safexpress mobile application. 4. Join hands with Indian railways for better and faster delivery. 5. Try to give the customers a better value for money 5.3 Limitations Difficult to cover the whole Ghaziabad and Noida region in 2 months. The sample size just gives an approximate picture of both the areas. Since the customers are inactive their response may be biased It was difficult to get data about other competitors Many customers were not ready to talk and share information. 5.4 REFRENCES http://www.safexpress.com/ https://blog.help.com/2015/04/20/3-steps-to-reactivate-churned- customers/ http://www.logisticsindia.net/Safexpress_Logistics_India http://www.iamwire.com/2017/04/indian-logistics-industry- scenario/151331 SALES AND MARKETING 37 Market analysis of Zero billing Clients APPENDIX QUESTIONNAIRE 1. Name of the organisation Concerned person Mobile No. 2. Name the type of business in which you are currently involved ____________ 3. With which logistics company are you currently associated Gati DHL VRL TCI Local transporters Others________ SALES AND MARKETING 38 Market analysis of Zero billing Clients 4. What is the level of importance associated with the following factors while selecting a logistics company (on a scale of 1 to 5 rate in order of importance 5 being most important 1 being least important?) FACTORS Most Important Somewhat Not so Least Important important important important TRANSIT TIME PRICING DOCUMENTATION REQUIRED SERVICES OTHERS 5 .For how long were you an active customer of Safexpress? less than a year 1 year -2 years 2 years-4 years more than 4 years 6. Monthly potential of in terms of rupees? 10000 – 20000 20000 – 40000 40000 – 60000 40000 – 100000 100000 and above. SALES AND MARKETING 39 Market analysis of Zero billing Clients 7. What are the reasons that you are no longer an active customer of Safexpress? 1. Service issues 2. Pricing issues 3. Transit time 4. Pending complaints 5. Others 8. If your complain/claim will be resolved, will you be interested in continuing the business yes no maybe 9. On a scale of 1 to 5 rate the performance of Safexpress on the following factors (1 being highly dissatisfactory and 5 being highly satisfactory) FACTORS 1 2 3 4 5 SERVICES PRICE/RATE DOCUMENTATION FORMALITIES TRANSIT TIME 10. On a scale of 1 to 5, rate the overall performance of Safexpress, (1 being highly dissatisfactory and 5 being highly satisfactory) (Highly dissatisfactory) 1 2 3 4 5 (Highly satisfactory) SALES AND MARKETING 40 Market analysis of Zero billing Clients SALES AND MARKETING 41 Market analysis of Zero billing Clients SALES AND MARKETING 42 Market analysis of Zero billing Clients SALES AND MARKETING 43 Market analysis of Zero billing Clients SALES AND MARKETING 44