CRM Market in India April 2014
Executive Summary
Market
CRM market in India is valued ~ INR ab bn in 2012 and is estimated to grow at a CAGR of ~ xyz% over 201318e Telecom sector stands out as the largest procurer within the CRM market in India Company A, B, C and D are the major implemented CRM solutions, followed by Company E and F and others
Drivers
Drivers and Challenges
Challenges
– Improved Customer Relationship and Operational Improvement
– Implementation and Operational Cost – Lack of Awareness of True Benefits
– Global Competence – Significant Cost Reduction – Technologically Sound Manpower
Trends
Demand for Transparency
Introduction of Social CRM
Emergence of Mobile CRM
Rising Cloud-based CRM Adoption
Major Players
Competition
Company A
Company B
Company C
Company D
Company E
Company F
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•Macroeconomic Indicators •Introduction •Market Overview •Types, Modules and Features •CRM Use in SMBs •CRM Selection Criteria •Drivers and Challenges •Key Trends •Scope of CRM in Key Sectors •Competitive Landscape •Strategic Recommendations •Appendix CRM MARKET IN INDIA 2014.PPT
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SAMPLE
Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15
13
d1 c1 b1
12
a1
14
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r q
s
0 -1 -2
t Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
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Oct 2013 - Nov 2013
Nov 2013 - Dec 2013 4
CRM market is witnessing steady growth with the increasing trend of CRM spending worldwide CRM Market – Global Overview
Market Size and Growth
• Global CRM market reviews: On , Company A had acquired X Inc., a leading provider of cloud-based marketing automation and revenue performance management software On , B bought for INR xxxxx mn, company Q the world’s leading social media marketing platform On , Company A acquired company D, a cloud-based content marketing provider
• In 2013, edging out Company Y, Company B has taken the lead in the CRM market They remain the only top CRM company that exists solely in the cloud
INR bn
X% a1
b1
2013e
2014e
Global CRM Market – Leading Continents
CRM MARKET IN INDIA 2014.PPT
c1
2015e
d1
2016e
e1
2017e
f1
2017e
Global CRM Market – Major Sectors
5
In India, on-premise solutions have higher traction than cloud solutions, unlike developed nations such as US, UK Market Size and Growth - India
Market Overview – India • Over the years, CRM has evolved from point solution to 360 degree enterprise-wide initiative in India • CRM implementations in India are mainly focused on marketing and campaign management • Cost and installation time varies for different softwares
INR bn
f1
Z% a1
b1
2013e
2014e
c1
e1
d1
Average installation time for a standard software – 1.5 months Approximate cost – INR 0.1 mn
• A, B ,C and Dare the major implemented CRM solutions followed by E ,F and others
0 2015e
On-Premise CRM
2016e
2017e
2018e
On-Demand CRM
Powerful management tools
Easy to use and fast to deploy
Completely customizable
Managed by business users
Driven By IT
Limited functionality
Difficult to use
Isolated CRM
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CRM can be broadly categorized Types of CRM
Text
Text
Text
Text
• Text
• Text
• Text
• Text
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Large presence of SMBs in India proves to be highly beneficial for CRM vendors CRM Adoption – SMBs (1/3) • Currently, 50 mn operational SMBs (Small and Medium Businesses) contribute to xyz mn Growing economic activities in the country is resulting in the SMBs witnessing an exponential growth
• Indian SMBs are expected to grow at a1% • Existence of a massive SMB segment in India proves particularly beneficial for CRM vendors in India Increased competition in the market is forcing SMBs to adopt CRM solution to maintain their business standards, helping the vendors to increase sales
Some potential benefits of CRM implementation Benefits Text
Text
Text Text
Description Text
Text
Text Text CRM MARKET IN INDIA 2014.PPT
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CRM adoption by SMBs is facilitated by both private players and…
SAMPLE
CRM Adoption – SMBs (2/3)
• Overall IT spend of the SMBs is expected to reach about INR B2 mn • Increased awareness and interest level of base-level SMBs in technology clearly indicates India's technological progress
~a1 mn
b1 mn
Technology ready addressable market
~c1mn
d1mn
Technology ready addressable market
Retail
Text Text Text
Addressable Market SMB Segments
Professional Services Manufacturing Enterprises Hotels and Restaurants Education
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Drivers and Challenges
Drivers
Challenges
Improved Customer Relationship and Operational Improvement
Implementation and Operational Cost
Global Competence
Lack of Awareness of True Benefits
Significant Cost Reduction Technologically Sound Manpower
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Enhancement of customer care operations and achievement of global standards are catalyzing CRM adoption Improved Customer Relationship and Operational Improvement
Impact
• Text • Text • Text • Text
Global Competence
Impact
• Text • Text • Text • Text
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Trends - Summary
Rising Cloud-based CRM Adoption
Demand for Transparency
Key Trend s Introduction of Social CRM
Emergence of Mobile CRM
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India is becoming a promising market for mobile CRM owing to… Emergence of Mobile CRM (1/2) • Mobile CRM on smartphone or tablet allows customers to view and update critical customer information from their CRM database in real-time • Mobile CRM is expected to witness a greater level of adoption with the growth in smartphones shipments in India
Increasing mobile devices boosts growth in mobile CRM
Continual decline in the minimum price points of ‘smart’ handheld devices is primarily aiding rise in Smartphone market penetration
Smartphone shipments in India is expected to increase by more than three-fold in 2015 from that of 2011
Smartphone Shipment In India q-o-q basis Units mn
Smartphone Shipment In India y-o-y basis Units mn
X%
b1
Y%
d1
c1
a1
0
0 Q3 2012
Q3 2013
2014e
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2015e
13
Social CRM Global Market Share (2013) A% B% J% K% G% F% L% E% H% D% C% I%
SAMPLE M%
P%
a b c d e f g h
i j k l m n o
N% • Social CRM includes many platforms namely: Facebook , Twitter, linkedin , Youtube , Message Board and Blogs • Facebook and Twitter are two major platforms followed by Youtube and Linkedin • As social media’s importance is rising, firms are adopting ways to promote their CRM strategies through social and digital platforms • With customers voicing grievances on the Web even before approaching a company, firms are in a way compelled to embrace social CRM
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A Vs B (Indian Market Overwiew)
A B INR bn
b1
a1
a2
b2
SAMPLE
• A and B are the two major segments of the X service market in India • Due to an increase in the overall IT based expenditure in India the estimated spending on X services in India over the next five years is expected to be ~ INR a1 bn • Out of this total spending, A will occupy ~ x% • Out of all the X services in India, A represents the most mature section today, as a result of which more firms are inclined towards its adoption • Despite the introduction of other services in the market, A continues to be at the top followed by B • The Indian market has been growing at a steady pace over the past few years and will continue this trend during the coming years
0 2013e
2014e
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Although CRM is being adopted by numerous verticals, the opportunities in all sectors are growing even more Scope of CRM in Key Sectors
SAMPLE
A
• Text
D
• Text
B Healthcare
• Text
Information E Technology
• Text
C
• Text
F
• Text
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Case Study 1 Client Organization
Industry
IT Vendor
ABC
x
y
Case: ABC saves time, increases revenues using xyz
• Text
Benefit
Solution
Requirements
• Text
• Text
Technology Used Xyz software CRM MARKET IN INDIA 2014.PPT
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Porter’s Five Forces Analysis
SAMPLE Impact Medium TEXT
Impact Low
TEXT
Impact High
Impact High
TEXT
TEXT
Impact Low to Medium
TEXT
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Competitive Benchmarking (1/3)
SAMPLE
Key Ratios of 3 Major Private Companies – Operational Basis (FY 2013) (1/3) Operating Margin
Net Margin
% 50
a1
c1
a2
c2
0 -50
b1
-100
C Ltd
b2 S Ltd
P Ltd
• C ltd has recorded operating margin of a1%, higher than S ltd and Pltd which has operating margin of b1% and c1% respectively in 2013 • C ltd has also recorded net margin of a2%, higher than than S ltd and Pltd which has operating margin of b2% and c2% respectively in 2013
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Competitive Benchmarking (2/3)
SAMPLE
Key Ratios of 3 Major Private Companies – Operational Basis (FY 2013) (2/3)
Return on Equity
Return on Capital Employed
% 60
c2
40 20
a1
a2
b1
b2
Current Ratio 15
x1
10
c1
5 0
0
C Ltd
S Ltd
P Ltd
C ltd
y1
z1
S Ltd
P Ltd
• P ltd has recorded return on equity (ROE) of c1%, while C ltd and S ltd have recorded ROE of a1% and b1% respectively in 2013 implying P ltd is generating higher profit with the money shareholders have invested than others • P ltd has recorded return on capital employed (ROCE) of c2%, higher than both C ltd and S ltd which have recorded ROCE of a2% and b2% respectively • C ltd has recorded current ratio of x1 higher than that of S ltd and P ltd which recorded current ratio of y1 and z1 respectively implying C ltd is in a better position to pay for its short term debts
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Competitive Benchmarking (3/3)
SAMPLE
Key Ratios of 3 Major Private Companies – Operational Basis (FY 2013) (3/3) Debtors Turnover Ratio 2011
2012
2013
Asset Turnover Ratio
200
c3
150
1.5
100 50 0
a1
a2 C Ltd
a3
b1
b2 S Ltd
b3
c1
c2
z1
2.0
x1 y1
1.0 0.5 0.0
P Ltd
C Ltd
S Ltd
P Ltd
• P ltd has recorded debtors turnover higher than C ltd and S ltd implying that P ltd is doing better as they are collecting money from their debtors in a faster pace • P ltd has recorded asset turnover ratio of z1 higher than C ltd and S ltd implying that P ltd is more efficiently using its assets in generating sales revenue
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SAMPLE
Public: Foreign Company – A Ltd. (1/4) Company Information
Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Head Office
Pune
Stock Exchange
Products and Services Category
Products/Services
Key People
Products
Name
Designation
Person
President and CEO
Person
CFO
Person
Head of South West Asia Region and Regional Vice President
Person
Division President India
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Public: Foreign Company – A Ltd. (2/4) Financial Snapshot Total Income
INR mn 8000 6000 4000 2000 0
Key Ratios Net Profit/Loss
INR mn
c2
d2
200 150
c1
d1
100 50 0
2012
2013
b2 a2 a1
b1
2010
2011
Financial Summary • The company reported total income of INR ‘d1’ bn in FY 20--, registering an increase of ‘p’% over FY 20-• It earned an operating margin of ‘x.x’ per cent in FY 20--, an increase of ‘y.y’ percentage points over FY 20-• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase of ‘z.z’ per cent over FY 20--
20--
20--
20--
20--
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Key Financial Performance Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
y-o-y change (20-- – -- )
Cost Ratios
• The company earned a net profit of INR ‘d2’ bn in FY 20--, as compared to net profit of INR ‘c2’ bn in FY 20--
Indicators
Particulars
Value (dd/mm/yyyy)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
CRM MARKET IN INDIA 2014.PPT
Decline
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SAMPLE
Public: Foreign Company – A Ltd. (3/4) Key Business Segments
Key Geographic Segments
Product
Region 1
Region 2
Region 3 100% 50%
a1
100% 0%
0%
a3
a2
2010
2013
b1 b3
b2
2011
c1 c3
c2
2012
d1 d3
d2
2013
Business Highlights Description
News • Company A Ltd. is a provider of software and services for communications, media and entertainment
Overview
Launch
industry service providers • Company with its CRM solution for the telecom sector made significant impact in the Indian market • It offers customer care, billing and order management systems for telecom, Internet services providers
• On , A ltd had announced the designing of a new complete cloud system • On , A ltd had introduced a new Wi-Fi Experience solution
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SAMPLE
Private: Foreign Company – A Ltd. – SWOT Analysis (4/4)
Text
Text
S
W
O
T
Text
Text
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SAMPLE
Private: Foreign Company – B Pvt. Ltd. (1/5) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category
Bangalore
Products/Services
Key People Solutions
Name
Designation
Person
Executive Chairman and President
Person
Chief Executive Officer
Person
Chief Restructuring Officer and Director
Person
Chief Financial Officer and Chief Accounting Officer of CDC Corporation
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SAMPLE
Private: Foreign Company – B Pvt. Ltd. (2/5) Shareholders of the Company dd/mm/yyyy
Ownership Structure Segment
Name
Shareholder 1
No. of Shares held
a
Shareholder 2
b
Total
xxxx
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100.0%
100.0%
100.0%
2011
2012
2013
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SAMPLE
Private: Foreign Company – B Pvt. Ltd. (3/5) Financial Snapshot
Key Ratios Total Income
Particulars
Net Profit/Loss
INR mn
INR mn
b2 a2 b1
a1
c2
d2
c1
d1
0
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios 2010
2011
2012
2013
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Financial Summary • The company earned a net profit of INR d2 mn in FY 20--, as compared to net profit of INR c2 in FY 20-• The company reported total income of INR d1 mn in FY 20--, registering a decrease of x% over FY 20-• The company earned an operating margin of y% in FY 20--, registering an increase of “m” percentage points over FY 20-• The company reported a current ratio of z% in FY 20--, registering an increase of “q%” over FY 20--
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
CRM MARKET IN INDIA 2014.PPT
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Private: Foreign Company – B Pvt. Ltd. (4/5) Business Highlights Description
News • B Pvt. Ltd. is a subsidiary of The B Group plc, a leading international supplier of business management software solutions and related products and services for small to mid-sized businesses
Overview
• B software is the third biggest application vendor in the world with x mn customers worldwide • Its CRM products, A CRM, B CRM C and D are targeted at Indian SMBs • Its value added reseller (VAR) network is significant in India, offering customers local, on-spot support for the on-demand and on-premise CRM solutions
Industries Catered
• B Software has over 1000 customers in India for its CRM, ERP, Payroll and HRMS products across industries such as, xyz, pqr, abc,
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Private: Foreign Company – B Ltd. – SWOT Analysis (5/5)
Text
Text
S
W
O
T
Text
Text
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SAMPLE
Strategic Recommendations (1/2) Strategy
Adoption Area
Increase Affordability and Flexibility of CRM Solutions
• TEXT
Offer Multi-Platform Social and Mobile CRM Solution
• TEXT
Introduce Loyalty Programs and Regional Growth Increase Benefit Awareness
• TEXT
• Provide affordable and flexible CRM solutions • Integrate Social and Mobile CRM functionality into a single CRM solution • Introduce loyalty programs for CRM solutions • Increase awareness regarding CRM benefits among consumers CRM MARKET IN INDIA 2014.PPT
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