Customer Satisfaction Analysis of Power Saving Products
Chapter-One INTRODUCTION
1.1 Objective of the Study General Objective The General objective of this section is to gain knowledge about the company and its current functions and also discussing about some problem issued faced by the company. Specific Objective More specifically, this study entails the following aspects: •
Historical background of the company
•
Mission, vision and strategy of the company
•
Organizational Structure
•
Companies major functions, departments, products and brands
•
Problem issues
•
Industry analysis and SWOT analysis
1.2 Origin of the Study This report has been prepared for fulfilling the requirement of the internship program. Duration of the internship program was for 15 weeks, commencing on May 10, 2010 and finishing on September 10, 2010. This project was assigned by the organizational supervisor Mr. Wasi Uddin Ahmed Chowdhury (Area Sales Manager). 1.3 Scope of the Study Scope in this section is very broad to analyze, as information’s are quite available. Human resource department are the major scope while doing this study and also the website has helped me a lot to collect data. Only problem that occurred while collecting the problem issues.
1.4 Significance of the Study Market research and consultancy is an old art which is becoming more important in Bangladesh day by day. The activities of market research include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and understanding the marketing process. Since Rahimafrooz did not conduct any structured survey on its performance of UPS before, thus it has become extremely important to carry out such a research which will help the company in improving its current performance and in aiming to achieve the leadership position in the UPS market. Moreover, Rahimafrooz is already the most reputed and market leader for IPS, so it should definitely strive for being the same for UPS. 1.5 Methodology In order to attain the aims of the study both qualitative and quantitative basic research methods will be used. Both primary and secondary sources of information will be used to carry out the marketing study: Primary data will be collected by carrying out survey based on questionnaires, self Administered Surveys. The questionnaires will be face to face. To accomplish the goals of the study, the questionnaires will contain all dimensions of the research objective. The study will be conducted through surveys of both potential consumers as well as traders to do the potential Consumer survey—usage pattern, branding and purchasing factors; and Retailer survey—volume projection, price analysis and selling propositions. The total sample size will be 120 respondents. 1.6 Limitations of the Study: The primary limitation of this research is the time constraint.
Time will
not permit to do an extensive research using a larger sample.
To
understand the consumer perception for a complete line of
product
the sample size should be larger and diversified and thus it remains to be the basic limitation of 2
this report. Moreover, the respondents might not be eager to respond to the questionnaire and may not answer truthfully. Secondly, the study is based on limited area coverage (Dhaka only) and a detail study, in some of the cases, could not be possible because of resource constraint.
The major limitation that I faced in, the information was not organized.
In the problem issue part, it was very tough to work on as this is very difficult for having a free access in all the departments and they never want to share the problem issues infront of the interns. So, for this part I had to face lots of challenges.
I could not able to include the problem statement quite it details just because of the previous problem. Still, I tried to overcome these problems and made my report.
I had to continue my report preparing activity and my office task parallels.
Chapter-Two
Company Profile of Rahimafrooz Rahimafrooz (Bangladesh) Limited (RABL) is the Group Holding and Parent Company including the Group Corporate Center that guides the Strategic Business Units (SBUs). It ensures continuous management innovation, technology adoption, new initiatives, corporate governance and compliance. Currently it oversees and nurtures around 1800 employees who contribute to its dynamic growth.
2.1 ENERGY INDUSTRY IN BANGLADESH: Energy situation Bangladesh has small reserves of oil and coal, but potentially very large natural gas resources. Commercial energy consumption is around 66% natural gas, with the remainder mostly oil (plus limited amounts of hydropower and coal). Only around20% of the population (25% in urban areas and 10% in rural areas) has access to electricity, and per capita commercial energy consumption is among the lowest in the world. Noncommercial energy sources, such as wood, animal wastes, and crop residues, are estimated to account for over half of the country's energy consumption. Consumption of wood for fuel has contributed to deforestation and other
environmental problems in Bangladesh. The World Bank has estimated that Bangladesh loses around $1 billion per year in economic output due to power outages and unreliable energy supplies. With only about 20% of the population connected to the electricity grid, and with power demand growing rapidly, Bangladesh's Power System Master Plan (PSMP) projects a required doubling of electric generating capacity by 2010. In addition, Bangladesh also may need to replace 30%-40% of its current generating capacity, due to aging infrastructure.
2.2 Renewable energy potential According to preliminary studies, wind energy will be viable in the coastal areas, offshore islands, rivers sides, and other inland open areas both for mechanical power and electricity generation. So, minimum two years feasibility study is essential for actual assessment of wind energy application. There are certain locations near the southeast and northeast hilly region of Bangladesh where micro or mini hydro power plants can be constructed to serve local needs of electricity. Two potential sites for feasibility studies are Banderban and Madhadkundu. Micro and mini hydro generators of different capacity will be set up on an experimental basis at two selected sites. The potential of biogas technology is immense and this technology has far reaching benefits especially for the densely populated rural areas. According to official estimates, Bangladesh has a cattle population of 24 million and poultry population of 75 million. The dung supplied by the cattle, about 240 million kg/day, can produce 2.97 billion m 3 biogas, which is equivalent to 1.52 million tons of kerosene or 3.04 million tons of coal. Poultry litters can produce 0.525 million m3/day of biogas. The government of Bangladesh also provides fiscal incentives for investors in renewable energy as well as incentives for foreign investors joining the energy market in Bangladesh.
2.3 Bangladesh Unit General Population (2005) Country area 4
144319628 142615 km²
Total density of population (people/km2)
1012.000 capita/km²
Growth of people % /year
2.090 %
Land use arable (%)
62.110 %
Land use perm crops (%)
3.070 %
Percentage of total people living in cities
23.900 %
HDI (2002)
0.509
Oil consumption
71000.000 bbl/day.
With a country-wide distribution network of 173 Dealers, 275 Retailers and 101 Lubricant Dealers, Rahimafrooz Distribution Limited (RDL) is the foremost consumer facing SBU of the Group that carries more than ten national and international brands. RDL is the clear leader in its automotive after market and emergency power product categories. It is a Private Limited Company which was incorporated on November 28, 1999 under the Companies Act, 1994. (Rahimafrooz Distributions Ltd.) Rahimafrooz operates in three broad segments – automotive after market, power and energy, and retail. While their Group activities are coordinated from the Rahimafrooz Corporate Office (RACO), they have eight Strategic Business Units (SBUs), three other business ventures, and a not-for-profit social enterprise.
2.4 Company Profile (Basic Information) Company Name: Business Type: Product/Service (We Sell): Product/Service (We Buy): Brands: Number of Employees: Trade & Market Main Markets:
Rahimafrooz Bangladesh Ltd Manufacturer, Trading Company, Agent Lead Acid Battery, Tyre, Voltage Stabilizers, UPS and IPS. Voltage Stabilizers, UPS, IPS. Rahimafrooz Above 1000 People
Africa
Mid Eastern Asia Domestic Market, Middle east, India, etc Sales Above US$100 Million
East
Main Customers: Total Annual Volume: Export Percentage: 21% - 30% Total Annual Purchase US$50 Million - US$100 Million Volume: Factory Information Factory Size (Sq.meters): Factory Location: QA/QC: Number of Production Lines: Number of R&D Staff: Number of QC Staff: Management Certification: Contract Manufacturing:
Above 100,000 square meters Dhaka, Pabna & EPZ In House Above 10 11 - 20 People 31 - 40 People HACCP ISO 9001:2000 QS-9000 ISO 14001:2004 OEM Service Offered Design Service Offered
2.5 Company Vision Ranging from automotive after market products, energy and power solutions, to a world class retail chain – the committed team at Rahimafrooz is committed to ensuring best in class quality standards and living the Group’s four core values – Integrity, Excellence, Customer Delight and Innovation. 2.5.1
2.5.2
Our Aspiration We want to be the most admired and trusted organization through excelling in everything we do, following ethical business practices, and adding value to our stakeholders.
2.5.3
Our Quality Policy
We are totally committed to customer delight through operational excellence, innovation and continual improvement of quality. 6
2.6
Our Values
Our Values >Integrity in all our dealings >Excellence in everything we do >Total commitment to customer satisfaction • Thinking ahead and taking new initiatives
Our Vision Be an enterprising Group of Taka 2,000 crore by the year 2010 with a diversified business portfolio focused on dynamic growth, excellence, innovation, customer delight in enriching our world.
Quality Policy WE ARE TOTALLY COMMITTED TO CUSTOMER DELIGHT THROUGH OPERATIONAL EXCELLENCE, INNOVATION, AND CONTINUAL IMPROVEMENT OF QUALITY.
Chapter-Three Functional Department of Rahimafrooz
3.1 Structure Organization
and
Functional
Department
of
The
Like human beings stand strong and tall on their backbone, an organization stands on its structure. An organization’s success strategy is often determined by its structure. Structure can be of process, functions or that of an organ gram. Any flaw in any of the aspects mentioned calls for restructuring. One of the initial necessities of forming an organization is determining its structure. At Rahimafrooz Distributions Ltd., the structure is a mixture of flat and tall. There are very few hierarchies and thus is much more flat than tall. In our Head Office there are 5 major departments: •
Marketing Department
•
Human Resource Administration Department
•
Finance Department
•
Distribution Department
•
Dealer Sales
On top is the Director and then is the Chief Operating Officer (COO), and under the COO the 5 major departments. Each department has its own General Manager. There are mainly 7 retail sales offices under the Marketing Department. Among these 7 sales offices, the last 4 (CSO, BSO, SSO and JSO) are also dealers of Rahimafrooz Distributions Ltd.
3.2 Decision Making Process In the Rahimafrooz Distributions Ltd, decisions come from top level management. Decision making process is following: Dealers 8
Customer touch point Data Sales Database Insights Top Level Management Customer Communications Product Offerings Promotions Store Layouts Product Database Customer Database
Source: Sales and marketing department
3.3 Production •
High Quality
•
Maximum volume of production
•
Follow TQM in the production
PRODUCTION DIVISION Assistant Manager Production Officer Officer Assistant Officer
3.4 Marketing •
Designing and implementing sales strategies.
•
Controlling and updating distribution network.
•
Designing and carrying out promotional programs.
•
Providing marketing information services.
•
Carrying out different awareness programs.
•
Keeping records of data regarding marketing activities.
•
Building up public communication network.
•
Conducting marketing surveys as needed
CUSTOMER - DEALERS
Organ gram - SALES AND MARKETING DIVISION CUSTOMER
- CORPORATE
Satisfaction
- RETAIL
Quality Policy Quality Objectives Audit Results
GBOD DIRECTOR 10
Analysis of Data
COO GM, HR
GM, MKT
MARKETING
HR
GM, F&A F&A
GM, DLR RTL &CORP.
SALES SUPPLY CHAIN QMS
3.5 Rahimafrooz (Bangladesh) Limited: Rahimafrooz (Bangladesh) Limited (RABL) is the Group Holding and Parent Company including the Group Corporate Center that guides the Strategic Business Units (SBUs). It ensures continuous management innovation, technology adoption, new initiatives, corporate governance and compliance. Currently it oversees and nurtures around 1800 employees who contribute to its dynamic growth.
3.6 Rahimafrooz Batteries Limited (RBL): Rahimafrooz Batteries Limited (RABL) is the largest lead acid manufacturer in Bangladesh. Their excellent export growth, to around 24 countries, has positioned them as a major player in South Asia. RBAL manufactures over 300 different types of automotive and customized industrial batteries. They also have UPS and rectifier for secured power systems. The Company is both ISO 9001 and 14001 certified. With focus on technology, RBL has added to its portfolio Maintenance Free, Calcium-Calcium, Hybrid and Deep Cycle Solar batteries. All batteries conform to the respective JIS, DIN and BIS standards. Annual capacities are 1 million automotive batteries and 25 million AH of industrial batteries. By 2010 RBL plans to increase its capacity to 2 million in automotive and 52 million AH in industrial batteries.
Product Range:
Automotive, Motorcycle and Appliance Battery, Industrial Stationary, Deep Cycle, Traction and VRLA) Battery, UPS and Rectifier.
3.7 Rahimafrooz Distribution Limited: Rahimafrooz Distribution Limited (RDL) is the largest marketing and distribution house in automotive aftermarket and in emergency power back-up systems in Bangladesh. RDL is the market leader in its product categories. Its product portfolio includes battery, tyres and lubricants for all types of vehicles and lubricants for industrial use. It leads emergency power back up market with its IPS, UPS and Voltage Stabilizers. RDL is the exclusive distributor and marketer of the full product range of Dunlop and Castrol. The company operates through a well-connected distribution network of over 350 Dealers and Retailers. It has seven sales and service centers located in Dhaka, Chittagong, Bogra, Jessore and Sylhet to serve its customers and network. It envisions rapid expansion and transformation of its distribution system for other products.
Product Line: Automotive, Motorcycle, Appliance Batteries, PC or CV Tyre, IPS, UPS, Voltage Stabilizer and Automotives and Industrial Lubricants.
Brands: Battery: Lucas, Volta, and Spark. Tyre: Dunlop, RZ, and Kenda. Lubricant: Castrol. Emergency Power Products: Rahimafrooz IPS, Radiant IPS, Rahimafrooz UPS and Rahimafrooz Voltage Stabilizer.
Product Line: Diesel Generators, Gas Generators and Electrical Accessories. 3.8 Business Association
12
Exclusive distributor of Pramac diesel generators, Italy Authorized distributor of GE consumer & industrial lighting in Bangladesh Distributor of Castrol Industrial Lubricants in Bangladesh (Internal arrangement with RDL)
Customers
Corporate Houses Educational Institutions Government Establishments Hospitals Industrial Plants Real Estates Supermarkets Telecom Industry
A UPS generally protects a computer against four different powers Problems: •
Voltage surges and spikes - Times when the voltage on the line is greater than it should be
•
Voltage sags - Times when the voltage on the line is less than it should be
•
Total power failure - Times when a line goes down or a fuse blows somewhere on the grid or in the building
•
Frequency differences - Times when the power is oscillating at something other than 60 Hertz (How does a computer’s UPS work? n.d.)
UPS market
Bangladesh uninterruptible power supply (UPS) market is expected to
continue on an upward trajectory until 2015. As UPS is an indispensable part of IT operations as well as finance and engineering applications, UPS services are expected to gain significant traction and generate more revenues. Bangladesh has a fast growing market for technology products and hence for Rahimafrooz, it is still a unique opportunity to increase their brand presence. Through my activities of market research, which includes, defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and understanding the marketing process, I was able to assist Rahimafrooz in analyzing their UPS performance in the market, which will eventually lead them to increase their brand awareness by generating marketing strategies.
Through this report, I have derived the current trend of the UPS market in Bangladesh and how much market share Rahimafrooz UPS is holding.
Analysis: Table1 gives the frequency distribution of my consumer respondents’ age group. In the table, the first column contains the labels assigned to the different categories of the variables and the second column gives the number of respondents checking each value. The final column displays the percentage of respondents checking each value. The frequency data is used to construct a pie chart, in which the values of the variable are portrayed in percentage.
Valid
Occupation
Frequency
Percent
Student
32
53.3
Private Service Holder Businessman Total
18 10 60
30.0 16.7 100.0
Cumulative Percent 53.3 83.3 100.0
Table 1: Frequency Distribution of Respondents’ Occupation
Chart 1: Pie Chart of Respondents’ Occupation. Analysis:
Consumers, who were surveyed, mainly within the age of 21 to 25. Focus was given on this age group since the consumers in this group are young and dynamic who are more dependent on the usage of both computers. 14
•
The occupation table shows that majority of the respondents were students. This can be justified by the fact that the students sector of our economy is huge and it is increasing as well. Moreover, students are highly aware of UPS. Thus the survey was not biased; it maintained somewhat a balance between the number of other age groups and occupation, but mainly focusing on the young age group and students.
Brand Usage & Reason: High Quality
Which brand you use?
do Apollo
Rahimafr ooz Power Tree Sandon
Prolink
Greenwa ve Total
Count % within Which brand do you use? Count % within Which brand do you use? Count % within Which brand do you use? Count % within Which brand do you use? Count % within Which brand do you use? Count % within Which brand do you use? Count % within Which brand do you use?
High Quality Yes No 5 9
Total
35.7%
64.3%
11 84.6%
2 15.4%
0 .0%
1 100.0 % 6 75.0%
100.0 % 13 100.0 % 1 100.0 % 8 100.0 % 5 100.0 % 4 100.0 % 45 100.0 %
2 25.0% 0 .0% 1 25.0%
5 100.0 % 3 75.0%
19 42.2%
26 57.8%
14
Table 2: Cross Tabulation of Respondents’ Brand Usage with High Quality Analysis: From the above table we can deduce if High Quality is a reason of using
their (respondents) current brand usage. Here we can see that mainly Rahimafrooz UPS is used for its high quality. The other brands are not used for its high quality.
Low Purchase Price
Which brand do Apollo you use?
Total
Count
% within Which brand do you use? Rahimafr Count ooz % within Which brand do you use? Power Count Tree % within Which brand do you use? Sandon Count % within Which brand do you use? Prolink Count % within Which brand do you use? Greenwav Count e % within Which brand do you use? Count % within Which brand do you use?
Low Price Yes 8
Purchase Total No 6
57.1%
42.9%
0 .0%
4 50.0%
13 100.0 % 1 100.0 % 4 50.0%
3 60.0%
2 40.0%
2 50.0%
2 50.0%
17 37.8%
28 62.2%
0 .0%
14 100.0 % 13 100.0 % 1 100.0 % 8 100.0 % 5 100.0 % 4 100.0 % 45 100.0 %
Table 3: Cross Tabulation of Respondents’ Brand Usage with Low Purchase Price Chapter-Four SWOT Analysis To analyze the internal condition of the company and the external environment simultaneously, the SWOT (Strengths, Weaknesses, Opportunities and Threat) analysis is done. The strengths and 16
weaknesses are the result of the internal analysis, while the opportunities and threats are related to external environment.
Strengths •
Considerable financial resources to grow the business.
•
A widely recognized company with an attractive customer base.
•
Ability to take advantage of economies of scale.
•
Better product quality relative to rivals.
•
Follows GMP- Good Manufacturing Practices.
•
Product innovation skills.
•
Proprietary technology and important patents.
•
Efficient, capable and honest workforces.
•
Goodwill of the Company.
Weaknesses •
Higher overall unit cost relative to key competitors.
•
Weaker dealer or distribution network than the key rivals.
•
Bad management practice.
•
High turnover of employees.
•
Unpredictable working hour.
Opportunities •
Expanding geographic coverage and product segments.
•
Expanding the company’s product line to meet a broader range of customer needs.
•
Transferring company skills or technological know-how to new products.
•
Alliances- contract manufacturing that expands the firm’s market coverage and competitive capability.
•
To open corporate sales department.
•
Establish more own hatchery.
Threats •
Growing bargaining power of the suppliers.
•
Increasing threats from local competitors.
•
Costly equipments.
Conclusion: On the basis of overall organization part, we can clearly see that Rahimafrooz Distribution Limited (RDL) is the largest marketing and distribution house in automotive aftermarket and in emergency power back-up systems in Bangladesh. Bangladesh has a fast growing market for technology products and hence for Rahimafrooz, it is still a unique opportunity to increase their brand presence. The Rahimafrooz team never compromises on ethical business practices. We set high standards of ethics and moral virtue for ourselves. Our commitment to integrity shall never be compromised for the sake of business goals or anything. We firmly believe in religious, ethical, social and legal righteousness and we strictly adhere to those. We are also a firm believer in 18
meaningfully contributing to the community and “giving back” to the society. I have passed there three months. From my experience I have reached a conclusion on Rahimafrooz should consider not only increase the sales volume but also increase good brand image to end customer, promotional activities, employees satisfaction. All the things together can create a legendary position for Rahimafrooz has been a partner in the development journey of this nation for more than fifty years now. They set themselves the highest standards in responsible corporate behavior and their passion for success is aligned with the development journey of Bangladesh. They, at Rahimafrooz as an organization, are committed to playing a leading role in driving growth, prosperity, ethical values and social responsibility. Rahimafrooz Group will continue to serve its customers through unparallel quality excellence and service superiority. Their business success will be complemented by their commitment to the environment, society and community.
Recommendation •
Promotional activities should be made stronger. Improvement in this line will help them to have competitive advantage over their competitors and also to change the current market share position.
•
Marketing department should be very much careful on maintaining the 4 P’s properly as till now most of the problem comes out from the 4 P’s sector.
•
They should motivate the employees to decrease the dissatisfaction towards the company. It will make strong the internal activities.
•
They should establish a brand image to the end consumers.
•
HRD should be more flexible towards the employee’s rights.
•
Appraise on innovative work.
•
Encourage the employees to cooperate in the decision making process.
Excellence in everything we do
Our pursuit for business success has thrived on a very simple yet powerful philosophy – quality comes first! We have maintained highest quality standards in our operations, processes, products and brands, always keeping in mind that we can’t afford to be anything less than the best. In all our operating segments and in all our work areas, we strive for quality excellence and continuous improvement.
Total commitment to customer satisfaction It takes months, years, in some cases decades, to win a loyal customer. But it takes only a few seconds to lose one. Rahimafrooz thrives on winning loyal customers through best quality products and service. Most importantly, it believes in keeping its customers loyal though sustained quality, amazing service performance and superior customer relations. Every single decision we make, every single behavior we demonstrate, must be meant for the satisfaction of our customers.
Bibliography: How does a computers uninterruptible power supply UPS work? Retrieved May 10, 2010, from http://computer.howstuffworks.com/question28.htm This site gives the detailed information on the importance of using a UPS. IPS. Retrieved May 10, 2010, from http://www.webopedia.com/TERM/U/UPS.html This site gives the detailed definition and the use of UPS. Malhotra, K. Naresh. 2008. Marketing Research. 5th Edition. Prentice Hall: India Rahimafrooz Distributions Ltd. Retrieved May 10, 2010, from 20
http://www.rahimafrooz.com/better_distributions/products_better_distributions.asp This is the company website of Rahimafrooz Distributions Ltd. Rahimafrooz produced Renewable Energy hardware's / Power Solution in Bangladesh: Retrieved May 10, 2010, from http://www.reein.org/product_ret/rah/index.htm This website presents all the available models and prices of Rahimafrooz products.