DISSERTATION REPORT ON UTILITY OF TECHNOLOGYIN DELIGHTINGTHE CUSTOMER BY PROVIDING VALUE ADDED SERVICES Under the guidan e !"# Pr!

"$A%it &ain

Su'%itted '(#
ATIN GUPTA MAR)ETING ROLL NO **+A,

EMPI BUSINESS SCHOOL NE- DELHI

FACULTY CERTIFICATE

This is to certify that Mr$Atin Gu.ta of PGDBM-II, EMPI Business School has successfully completed his dissertation on uti//it( !" te hn!/!g( in de/ighting the u0t!%er '( .r!1iding 1a/ue added 0er1i e0 under my !uidance" #e $as found to %e &ery sincere and hard$or'in!" I $ish him %est of luc' for his future endea&or"

+Pr!" $A%it &ain,

A 2n!3/edge%ent
I $ould li'e to ta'e this opportunity to than all those persons $ho ha&e helped me in completin! this dissertation" )irstly I $ould li'e to than' Dr$V$A$E0h3er4 Dire t!r EMPI Bu0ine00 S h!!/ for !i&in! me such a $onderful topic to $or' on, I $ould li'e to than' him for the confidence he has sho$n in me" I $ould also li'e to !i&e my re!ards to Pr!"$ A%it &ain, my faculty !uide for !i&in! me his &alua%le time and !uidin! me to successfully finishin! the dissertation" I $ould also li'e to than' all those persons form the industry that ha&e helped me to understand the dynamics of the industry $ell" *astly, I $ould li'e to than' my parents for all the support and the confidence they ha&e !i&en me to complete this pro+ect"

+AtinGu.ta,

TABLE OF CONTENTS CONTENTS

INTRODUCTION......................................................................................................5 RELEVANCE OF CUSTOMER DELIGHT.................................................................9 OBJECTIVES...............................................................................................................12 RESEARCH METHODOLOGY..................................................................................13 CELLULAR INDUSTRY.............................................................................................14 BANKING INDUSTRY................................................................................................21 COURIER INDUSTRY................................................................................................32 FMCG SECTOR...........................................................................................................39 CONCLUSION.............................................................................................................48 ANNE URES! .................................................................................................................49

INTRODUCTION.
Today anticipatin! a ne$ %usiness opportunity and reactin! .uic'ly is especially important %ecause the Economy often re$ards the company that is first to lead in a ne$ mar'et" /ompanies $hose employees are attuned to their en&ironment0to economic, social, political and demo!raphic trends, as $ell as to competitors1 inno&ations or chan!es at suppliers and partners0 $ill %e one %i! step ahead in reco!ni2in! %usiness opportunities" 3hen a %rand meets customer e4pectations, it is ensurin! customer satisfaction" #o$e&er, $hen customers !et &alue or %enefits %eyond $hat they had e4pected, the %rand has ensured customer deli!ht" /ommon sense su!!ests that a deli!hted customer may %e more loyal to your %rand than a satisfied customer" /ustomer deli!ht is not +ust a%out %etter product performance" /onsumers ha&e a certain de!ree of functional e4pectation from a %rand, and, in most cases, the %rand is li'ely to deli&er a le&el of performance pretty close to that e4pected %y the customer" This is precisely the reason $hy functional parameters ha&e ceased to %e meanin!ful differentiators for customers to choose one %rand o&er the other" Deli!htin! the customer %y pro&idin! &alue added ser&ices accompanied %y technolo!y is the structure of the pro+ect" In the current scenario of cut throat competition $heth$e it it relates to manufacturin! sector or ser&ice sector ,it is .uality of ser&ices pro&ided %y

the or!anisations $hich distin!uishes one or!anisation from other or!anisation "It differenciates the or!anisations products and ser&ices "It !i&es them the platform to fi!ht in !lo%al $orld ,$hether it is in the field of Ban'in! , /ourier , )mc! or /ellular ser&ices "I ha&e chosen these four ser&ices as the research topics as these sectors &ery much li&e on the hin!e of %randin! $hich e4hausts time and money " Technolo!y forms the &ital part in ser&ices today ,%ecause in e&ery sector there are three dimensions $hich are loo'ed after Time Speed 6ccuracy The rele&ance of technolo!y has !i&en the or!anisations an added ad&anta!e $here they can pro&ide customers $ith technolo!y dri&en &alue added ser&ices $hich could help in !ettin! customer loyalty $hich is difficult to !et in competiti&e situations "3hen you !o 'no$ that you can %oo' your cinema tic'et online ,$ithout !oin! into dynamics of lar!e .ues , you !et more than $hat you re.uired ,you e4pected only !ood &alue for money &i2"!ood am%ience and comforta%le seats accompanied %y %etter audio sysyem , %ut no$ you ha&e to +ust enter and en+oy the mo&ie "Thus these &alue added ser&ices meets or e4ceeds your e4pectations and thus !i&in! customer deli!ht " *ets understand $hat are the &alue added ser&ices 7alue-added ser&ices are unli'e core ser&ices" They ha&e uni.ue characteristics and they relate to other ser&ices in a completely different $ay" They also pro&ide %enefits that core ser&ices can not"

Value-added Service Characteristics

6ll &alue-added ser&ices share the same characteristics9 1" :ot a form of %asic ser&ice %ut rather adds &alue total ser&ice offerin! (" Stands alone in terms of profita%ility and;or stimulates incremental demand for core ser&ice<s= ," /an %e an add-on to %asic ser&ice, and as such, may %e sold at a premium price -" sometimes stand alone operationally 5" Does not canni%ali2e %asic ser&ice unless clearly fa&ora%le 8" ser&ices > not merely for di&ersification E&ery &alue-added ser&ice $ill demonstrate one or more of the a%o&e characteristics" )urthermore, a &alue-added ser&ice $ill ne&er stand in star' contrast to any of the a%o&e characteristics" 7alue-added ser&ices also ha&e a certain time dimension associated $ith them" Su%+ecti&ely spea'in!, a &alue-added ser&ice today %ecomes a %asic ser&ice $hen it %ecomes sufficiently common place and $idely deployed to no lon!er pro&ide su%stanti&e differentiation on arelati&e %asis" Re/ati!n0hi. t! !ther Ser1i e0 There are t$o types of &alue-added ser&ices" The first ser&ice type are those &alue-added ser&ices that stand alone from an operational perspecti&e" These types of ser&ices need not %e coupled $ith other ser&ices, %ut they can %e" Many non-&oice ser&ices fall into this cate!ory" They are often pro&ided as

an optional ser&ice alon! $ith &oice ser&ices, %ut they could %e offered and used %y themsel&es $ithout the &oice ser&ice" )or e4ample, SMS could %e offered and used as a ser&ice $ithout &oice callin!" The second, and ar!ua%ly more numerous and important type of &alue-added ser&ice, are those ser&ices that do not stand-alone" Instead, this cate!ory adds &alue to e4istin! ser&ices" 3hile it seems implicit in the definition of &alue-added, this is an important principle that ma'es &alue-added ser&ices stand apart from other ser&ices"Thus $e see that &alue added ser&ices could %ecome %asic ser&ice in due course of time as people %ecome accustomed to it "There is need of constant inno&ations so that you could ha&e a competiti&e ad&anta!e amon! your competitors " This report co&ers four sectors 9 B6:@I:G /E**A*6B /CABIEB )M/G

It $ill try to !i&e an insi!ht in to &alue added ser&ices dri&en %y technolo!y and their rele&ance in meetin! or e4ceedin! customer e4pectations "

RELEVANCE OF CUSTOMER DELI !T.

Te" ti#es #$re e%&e"sive t$ ac'uire a "e( cust$#er tha" t$ )ee& a curre"t cust$#er
- *ai" + C$#&a", Research

Cust$#ers are l$st &ri#aril, due t$ i"di--ere"ce .//01 versus dissatis-acti$" .2301 - 4S5

when you look for a drugstore,you expect to find one close to home that has convenient hours. You also expect to be treated courteously , You're a satisfied . Here are some pointers for moving from. satisfaction to delight with your internalcustomer if that occurs. What you want is to customers.be treated as an individual, with empathy andLook for patterns between individualswith sincere concern. When that happens,and departments in your organization. Foryou're delighted.Customer delight acts as a balancing act as it keeps the balance between the Internal and external customer ,Customers rarely defect ,it depends on your innovative services and art of communicating the value added services . Customers can be suppliers or end user , delighting both has different dimensions : Bu0ine00 Cu0t!%er )or Profit or not for profit Small num%er <may%e only one= Purchase rather lar!e
E

 #andled throu!h speciali2ed people" May 'no$ more a%out the product re.uirements than the producer" C!n0u%er Cu0t!%er *ar!e num%er of customers" Purchases are normally small in actual dollars" Simple purchase process :ot as 'no$led!ea%le a%out the product" Do not share proprietary information $ith the consumer" So achie&in! customer deli!ht is different for different set of customers, for e4ample in fmc! sector customer deli!ht could %e achie&ed %y streamlinin! distri%ution system ,as fmc! hin!es around distri%ution net$or' ,the fast and accurate delie&ery of products at the doorsteps of distri%uter ,faster processin! of orders and thus decreasin! lead time could %e a &ital factor in achie&in! customer deli!ht ,$hereas in case of %an'in! ser&ices there is no interediary so the consumer e4pects the %est ser&ices a&aila%le to him "These are some of the reasons of customer dissatisfaction C&er 8FG of dissatisfied customers are so sic' and tired of poor ser&ice that they thin' it is futile to complain anymore" 6n unhappy customer $ill tell E-1F people a%out it"6 happy customer mi!ht only tell 5" The happy customer is 'no$n as an apostle " The more apostles the %etter" Most companies only spend 5G of their time fi!urin! out $hat $ent $ron!"
1F

 DonHt use your o$n instincts as research data <youHre not the customer=" See the $orld from the customers perspecti&e" Get customers to really tal'" EF-E8G of unhappy customers $onHt lod!e complaint"

11

O*5ECTIVES.
The o%+ecti&e of this study is to !et an insi!ht of rele&ance of technolo!y in customer deli!ht %y pro&idin! &alue added ser&ices,here four sectors &i2"cellular,%an'in!,courier andfmc! ha&e %een studied and the determinants of customer sastisfaction are e&aluated "This $ill help in determinin! the po$er of &alue added ser&ices in customer satisfaction in this competiti&e $orld $hether customer is %isuness customer or final consumer "

1(

RESEARC! MET!ODOLO 6.
The research $ill include 9 Primary data9 Sources of primary data $ill %e throu!h detailed .uestionnaire $hich $ill compare the &alue added ser&ices offered %y cellular operators , %an'in! industry" Inter&ie$ 9 Inter&ie$in! the personnel of fmc! companies and courier companies a%out the &alue added ser&ices" Secondary data 9 Iournals "Internet

1,

CELLULAR INDUSTR6.
The Indian cellular industry hosts companies competin! for a place in the mar'et" C&er (F %usinesses are &yin! for their shareJ $ith time, mer!ers and ac.uisitions may narro$ the field" Cne ma+or restraint is the seemin!ly astronomical financial pro+ections !enerated %y the multitude of companies resultin! in unreasona%le premium demands on the %ehalf of prospecti&e sellers" The e4citement a%out Indian cellular operator &alue is un+ustified, ho$e&er, and people in India ha&e suffered for this o&erestimation "The cellular industry has seen hu!e price $ars resultin! in tou!her competition ,e&eryone has hu!e poc'ets and no$ lea&in! prices cellular companies are tryin! to increase the su%scri%er %ase %y pro&idin! num%er of &alue added ser&ices "They are tryin! to increase customer loyalty " )6/TS9 $hen mo%ile $as launched in india sms $as considered as &alue added ser&ice %ut as time passed and $ith the emer!ence of more players in the mar'et the sms %ecame the common ser&ice " )or customer deli!ht the operators $ent on &alue added ser&ices spree "#ere are some details of &alue added ser&ices pro&ided %y ma+or players in delhi re!ion"

1-

MAR;ET S!ARE
MTNL 11% HUTCH 9% IDEA 3%

AIRTEL HUTCH MTNL AIRTEL 77% IDEA

AIRTELS VALUE ADDED SERVICES V$ice 7ased Services 7oice Mail )a4 Mail Star Peep Dial -a- Ser&ice Te%t 7ased Services.SMS1 Te4t Messa!in! Star Peep Information Ser&ices Send email throu!h SMS Mo%ile Ban'in! SMS /hat Services $" SMS8 4A9 + 9C Group Messa!in! SMS Kone 6irtel Messen!er Data Services Mo%ile Internet <36P= )a4 L Data Ser&ice Call Ma"a:e#e"t Services /all *ine Identification </*IP= /all *ine Identification Bestrictation </*IB= /all $aitin! /all #old /all Di&ert Others Smart Boamin! Smart 6ccess Smart /ustody Mo%ile #untin! STD; ISD STD5 ISD D(na%i L! 2ing

15

#AT/# 76*AE 6DDED SEB7I/ES

The list of &alue added ser&ices sho$ that the companies are tryin! to penetrate the mar'et %y pro&idin! ser&ices $hich the customers ne&er thin' of, no$ the customer could see online schedule of fli!ht ,rail$ay reser&ation and also he could chec' his %an' account throu!h mo%ile "These ser&ices ma'es him loyal to particular ser&ice "It increases customer satisfaction and thus acts as a po$erful tool to$ards customer retention "Technolo!y is pro&idin! the customer more than he $ants and desires " Its si!nificance is immense " :o lon!er the cell is used as medium to ma'e a call ,the success of cellular industry depends upon the &ariety and inno&ation in &alue added ser&ices" 5F Muestionnaires $ere distri%uted to respondents at mal&iya na!ar ,p&r sa'et and south e4 to 'no$ $hether &alue added ser&ices satisfy them ,it $as distri%uted amon! &arious a!e !roups and the results $ere &ery deli!htful ,it also !a&e an indication $hich cellular operator !ains o&er other in different parametres "

18

RESULTS
1" :o" of Mo%ile phone users amon! respondents "

NO OF USERS

10% USERS NON-USERS 90%

/CMME:T9-5 CAT C) 5F BESPC:DE:TS ASE MCBI*E P#C:ES" (" 3hich ser&ice do they use N
USE OF SERVICE
IDEA 13% MTNL 9% HUTCH 24% AIRTEL AIRTEL 54% HUTCH MTNL IDEA

/CMME:T96IBTE* S/CBES #IG#EST 6BCAT 5-G

1?

," 3hat do you loo' for %efore optin! for particular ser&ice N
9ARAMETRES FOR C!OOSIN

VALUE ADDED SERVICES 43%

CONNECTIVI TY 33% COST 24%

CONNECTIVITY COST VALUE ADDED SERVICES

/CMME:TS9IT S#C3S T#6T /CST 6:D /C::E/TI7ITO :C *C:GEB DCMI:6TES T#E BAOEB DE/ISIC: 76*AE 6DDED SEB7I/ES S/CBE MCST C: BAOEBS DE/ISIC:" -" Do you !et influenced %y &alue added ser&ices N

1D

NO 22% YES NO YES 78%

/CMME:TS9 SEB7I/ES "

IT

S#C3S

T#6T

M6PIMAM

:AMBEB

C)

BESPC:DE:TS

6BE MCBE I:)*AE:/ED BO 76*AE 6DDED

5"Do you thin' the &alue added ser&ices meets or e4ceeds your e4pectations from the ser&ice N

NO 29% YES NO YES 71%

8" If yes , $hich &alue added ser&ices satisfies you most N

1E

?@ 23 22 s#s #$7ile7a")i": > = e-#ail 2< 3 (a&

?A ?< 2A 2< A <

AIRTEL !UTC! IDEA MTNL

/CMME:TS9IT S#C3S T#6T 6IBTE* S/CBES C7EB CT#EB SEB7I/ES I: 76*AE 6DDED SEB7I/ES T#AS STBE:G#T#E:I:G T#E DCMI:6:/E C) 6IBTE*SM6ICB M6B@ET S#6BE I: DE*#I "

EPE/ATI7E SAMM6BO9 Besults sho$ that the &alue addedser&ices today are one of the ma+or determinant for choosin! particular ser&ice", 6lthou!h price and connecti&ity are determinants ,yet $ith the passa!e of time they %ecame more or less e.ual for all %asic operators" /ustomers are more than satisfied $ith their current ser&ice" Thus it clearly sho$s that application of technolo!y in pro&idin! &alue added ser&ices creates customer loyalty "

(F

*AN;IN

INDUSTR6.

The economic reforms initiated in the aftermath of the 1EE1 crisis ha&e %lo$n $inds of chan!e in e&ery se!ment of the economy" The %an'in! industry, one of the supportin! precursors to any rapidly !ro$in! economy, has under!one a period of considera%le chan!e since the 1EEFs" The three sectors of the %an'in! industry namely pu%lic, pri&ate and forei!n are the cornerstones of the chan!in! %an'in! industry"

(1

The entry of the :e$ Pri&ate Sector %an's into the mar'et chan!ed the face of this industry" :urturin! colla%orati&e &entures and payin! stron! emphasis on fore4 ser&ices, the pri&ate %an's are !lo%alisin! Indian %an'in! %usiness" 6rmed $ith strate!ic alliances $ith forei!n colla%orators, these %an's ha&e opened doors to ne$ positi&e ideas, concepts and products" These pri&ate %an's ha&e set a trend for uni&ersal %an'in!" The intensification of competition in the %an'in! industry as a result of !ro$in! pri&ate sector participation coupled $ith !ro$in! customer needs has spurred inno&ation resultin! in ne$ products and ser&ices" The pri&ate sector %an's spearhead this QInno&ation Be&olutionQ" The ne$ pri&ate sector %an's are tar!etin! specific products and client !roup" #o$e&er $ith the ad&ent of forei!n playersH participation, the pri&ate sector %an'sH position stands threatened"The intensification of competition in the %an'in! industry as a result of !ro$in! pri&ate sector participation coupled $ith !ro$in! customer needs has spurred inno&ation resultin! in ne$ products and ser&ices" The pri&ate sector %an's spearhead this QInno&ation Be&olutionQ" The ne$ pri&ate sector %an's are tar!etin! specific products and client !roup" #o$e&er $ith the ad&ent of forei!n playersH participation, the pri&ate sector %an'sH position stands threatened" 3ith emphasis on ser&ice and technolo!y, it is for the first time that Indian %an's <mainly pri&ate= are challen!in! the forei!n %an's" These %an's are ma'in! hea&y use of technolo!y to !i&e !ood ser&ice at par $ith forei!n %an's %ut to a much $ider clientele" Branch si2e has %een reduced considera%ly %y usin! technolo!y thus sa&in! manpo$er" This has resulted in an o&erall cost sa&in!" In addition the 6ny Time Money <6TM= facility helps dra$ lar!e customers to a %ranch" I/I/I Ban' has already launched

((

DataBase Mana!ement <referrin! to usin! the data%ase of e4istin! clients to !enerate more re&enues=" The technolo!y has chan!ed the proportions of %an'in! sector ,no$ $ith hu!e competition the %an's are tryin! to lure the customers %y plethora of ser&ices $hich the customer ne&er thou!ht of ")or e4, I/I/I %an' pro&ide the customer $ith the facility to rechar!e the prepaid mo%ile coupens at 6TMRs itself ,no more %uyin! the coupens from outside ,no$ the concept of .ue ismore or less &anished in %an'in! sector ,today the race is for the penetration,some !oin! throu!h openin! more atmRs in cities accompanied %y &alueadded ser&ices $hich deli!hts the customer $hen he uses theser&ices"6t first %an'in! $as limited only to transaction of money only, today the %an's focus on %uildin! relationship $ith customers ,as customers ha&e &arious alternati&es to choose from ,it is proper care and understandin! of customer needs $hich ma'es a difference " In &ie$ of se&eral de&elopments in the 1EEFs, the entire %an'in! products structure has under!one a ma+or chan!e" 6s part of the economic reforms, %an'in! industry has %een dere!ulated and made competiti&e" :e$ players ha&e added to the competition" IT re&olution has made it possi%le to pro&ide ease and fle4i%ility in operations to customers" Bapid strides in information technolo!y ha&e, in fact, redefined the role and structure of %an'in! in India" )urther, due to e4posure to !lo%al trends after Information e4plosion led %y Internet, customers - %oth Indi&iduals and /orporates - are no$ demandin! %etter ser&ices $ith more products from their %an's" )inancial mar'et has turned into a %uyer1s mar'et" Ban's are also chan!in! $ith time and are tryin! to %ecome one-stop financial supermar'ets" Mar'et focus is shiftin! from mass %an'in! products to class %an'in! $ith introduction of &alue

(,

added

and

customised

products"

6 fe$ forei!n L pri&ate sector %an's ha&e already introduced customised %an'in! products li'e In&estment 6d&isory Ser&ices, SG* II accounts, Photo-credit cards, /ash Mana!ement ser&ices, In&estment products and Ta4 6d&isory ser&ices" 6 fe$ %an's ha&e !one in to mar'et mutual fund schemes" E&entually, the Ban's plan to mar'et %onds and de%entures, $hen allo$ed" Insurance peddlin! %y Ban's $ill %e a reality soon" The recent /redit Policy of BBI announced on (?"-"(FFF has further facilitated the entry of %an's in this sector" Ban's also offer ad&isory ser&ices termed as 1pri&ate %an'in!1 to Qhi!h relationship &alueQ clients"

The %an' of the future has to %e essentially a mar'etin! or!anisation that also sells %an'in! products" :e$ distri%ution channels are %ein! usedJ more L more %an's are outsourcin! ser&ices li'e dis%ursement and ser&icin! of consumer loans, /redit card %usiness" Direct Sellin! 6!ents <DS6s= of &arious Ban's !o out and sell their products" They ma'e house calls to !et the application form filled in properly and also ta'e your passport-si2ed photo" #ome %an'in! has already %ecome common, $here you can order a draft or cash o&er phone;internet and ha&e it deli&ered home" I/I/I %an' $as the first amon! the ne$ pri&ate %an's to launch its net %an'in! ser&ice, called Infinity" It allo$s the user to access account information o&er a secure line, re.uest che.ue %oo's and stop payment, and e&en transfer funds %et$een I/I/I Ban' accounts" Products li'e de%it cards, fle4i deposits, 6TM cards, personal loans includin! consumer loans, housin! loans and &ehicle loans ha&e %een introduced %y a num%er of %an's"

(-

The &arious &alue added ser&ices offered %y %an's are discussed %elo$9 7alue added ser&ices9 6TM BI** P6OME:T I:TEB:ET B6:@I:G MCBI*E B6:@I:G (-S? /ASTCMEB /6BE P#C:E B6:@I:G BC6MI:G BE36BDS /ABBE:T BC6MI:G 6//CA:T E-TB6:S)EB BE/#6BGE /CAPE:S 6:O3#EBE B6:@I:G These &alue added ser&ices ha&e re&olutionised the %an'in! sector "Moreo&er the use of /BM soft$ares ha&e facilitated faster processin! and helps in maintainin! data%ase of e4istin! and potential customers "

(5

6 mar'et sur&ey

$as conducted to e&aluate $hether technolo!y is

si!nificant in deli!htin! the customers ,5F .uestinnaires $ere distri%uted amon! respondents at PBIO6 and S6@ET "

RESULTS# 1"Doyou ha&e %an' account N

(8

2% YES NO 98%

("If yes, in $hich %an's do you ha&e accountN

?< 2A 2< A NO .OF CUSTOMERS <
ICICI STANDARD C!ARTERED !DFC S*I OT!ERS

,"6re you satisfied $ith your %an'N

(?

14%

YES NO 86%

-"If yes ,$hyN

?< 2A 2< A < FASTER 9ROCESSIN NEARNESS TO ATM RELATIONS!I94IT!STAFF VALUE ADDED SERVICES SECURIT6

/CMME:T9 IT S#C3S T#6T :E6B:ESS TC 6TM IS IMPCBT6:T DETEBMI:6:T I: /C:SAMEB S6TIS)6/TIC: 6*C:G 3IT# )6STEB PBC/ESSI:G 6:D 76*AE 6DDED SEB7I/ES"

(D

5"Do &alue added ser&ices offered %y %an's ha&e enhanced customer satisfaction N
NO 8% YES NO YES 92%

8"If , yes, $hat do you thin' are the ser&ices $hich satisfies you "

B A N K IN

E -T R A IN N E S " ! E A R Y IN

N E B A N K IN

! ! IN

IN T E R N E T

! H O

S H O

/CMME:TS9 IT S#C3S T#6T PECP*E )EE* SE/ABE 3IT# P#C:E B6:@I:G T#6: I:TEB:ET B6:@I:G,S#CPI:G 6*SC )CBMS IMPCBT6:T DETEBMI:6:T 6S T#EBE IS :C :EED TC @EEP /6S# " The technolo!y acts as facilitator for or!anisations re.uirin! ser&ice e4cellence"

(E

N L

"

40 35 30 25 20 15 10 5 0

B ##

%ecause customers $ere no$ more enli!htened and $ere shoppin! for ad&anta!es one %an' mi!ht ha&e o&er the other, todayTs %an's needed to meet and e4ceed customer e4pectation" Some of the challen!es %an's faced such as control issues, hi!h profit;di&idend e4pectation from shareholders, assurin! depositors on the safety of their funds,the pri&atisation e4ercise and Ani&ersal Ban'in!" Cf all the precedin! contemporary challen!es confrontin! Indian%an's, those from the customers are unar!ua%ly the most encompassin! %ecause customers more than any other sta'eholder determine the focus, the strate!y, the products, the pricin! and e&en the 'ind of staff that %an's, li'e e&ery other ser&ice or!ani2ation can effecti&ely employ"T Csadolor then said today1s responsi&e %an' $ould ha&e to attend to customer needs as effecti&ely as possi%le $ith the hi!hest de!ree of accuracy in the shortest possi%le time" /ustomer deli!ht has pro&en to %e the Qcuttin! ed!eQ tool for $innin! and retainin! customers in this era of stiff competition in the %an'in! industry" 3ith the thin'in! that the deli!hted customer $ould %e more %rand-loyal than a satisfied customer and %earin! in mind that customer deli!ht $as mo&in! and not fi4ed %an's no$ had to %e $atchful and create more &alue propositions for customers, to sustain their patrona!e or enthusiasm" Q)our $ays they can do this are throu!h /ontinuous process reen!ineerin! Cptimal utili2ation of resources De&elopment of superior financial products Ap!radin! of manpo$er and s'ill sets"

,F

Technolo!y ho$e&er, is the only means %y $hich implementin! these re.uirements $ould not remain +ust a dream" QThe deployment of technolo!y ena%les %an's <especially retail %an's= to customi2e their products and ser&ices to meet the uni.ue demands of customers" Email mar'etin! is another technolo!y-%ased $ay throu!h $hich customers can %e reached anytime, any$here sent information specific to him" Deployment of technolo!ies such as 7oice C&er IP <7CIP=, the Intranet <for pu%lications and messa!in!=, central si!nature mandate confirmation systems, che.ue preconfirmation systems e"t"c" ensure that the cost of ser&ice is %rou!ht do$n and such %enefits transferred to the customers" Asin! technolo!ies li'e tele%an'in!, P/ %an'in! ser&ice and 6TM channels, ha&e !i&en customers roud-the cloc' ser&ice all year round" Technolo!y is a%le to consolidate disparate data%ases to !i&e a holistic picture of the customers1 financial positions and also e4pands the product creation possi%ilities of a %an'"

,1

COURIER INDUSTR6.
The Indian domestic industry is fra!mented"There are more than (,FF courier companies in India" These include (F in the or!anised sector, (FFF in the semi-or!ani2ed sector and the rest in the unor!ani2ed sector" D#*, Blue Dart and El%ee dominate the or!ani2ed sector" These companies ha&e international affiliations $ith forei!n ma+ors"Blue Dart has a tie up $ith )EDEP $hile El%ee has +oined hands $ith APS" Blue Dart spans across 115F cities in India$ith ?( offices and E8E outlets" El%ee has 1(- offices and (8, ser&ice centers and has anet$or' co&erin! 1(5F cities" D#* has 55 offices and ?5 outlets" In terms of re&enue, D#*is the leader"Gro$th of the courier industry is not onlylin'ed to the economic situation pre&ailin! in the country %ut also to the e4portscenario" The industry is a not re!ulated, $hich means no licenses are needed to set up acourier company" The entry %arriers, especially in the pac'a!e se!ment of the %usiness, are hi!h %ecause courier companies ha&e to %uild a stron! distri%ution net$or', need to use the latest technolo!y and need to ha&e a $ell-trainedstaff" 6 stron! %rand ima!e also acts as a ma+or %arrier" Economies of scale also plays a&ery important role, !i&en that operatin! le&era!e of the industry is &ery hi!h" The or!ani2ed sector, $hich is mostly into the pac'a!e se!ment of the courier %usiness, $ill continue to post stron! !ro$th rates" Cn the other hand the un-or!ani2ed;semi-or!ani2ed se!ment of the courier industry $ill face pressure on mar!ins %ecause of unfa&ora%le pricin! en&ironment" The unor!ani2ed sector is mostly into the documents %usiness, $here the

,(

mar!ins are much lo$er than the pac'a!e se!ment" Barriers to entry in the documents %usiness are also &ery lo$" *e&era!in! on their stron! distri%ution net$or' courier companies are $ell placed to ta'e ad&anta!e of the %illion dollar E-commerce %usiness" /ourier companies are pro&idin! customers $ith &alue added ser&ices so as to differentiate their products from their peers" *o!istics mana!ement has also emer!ed as ane$ !ro$th opportunity for the courier companies" Manufacturin! companies are increasin!ly outsourcin! their lo!istics re.uirements to third party lo!istics pro&ider" /ourier companies $orld$ide $ith their $arehousin! facilities and in-house technolo!y are in the %est position to offer such &alue added ser&ices"
Cust$#ers B

,,

D#* Is the mar'et leader in courier ser&ices in or!anised mar'et today " 3ith the increasin! penetration of Internet and other communication de&ices and competition from un-or!anised players, the document %usiness has $itnessed a reduction in mar!ins in the last three years" 3hereas the nondocument %usiness is relati&ely less competiti&e as it re.uires players $ith deep poc'ets" 3ithin the non-document %usiness, 1lo$ $ei!ht1 parcels are most profita%le"

Bi! e4press companies ha&e tie-ups $ith !lo%al courier ma+ors for the international %usiness" Blue Dart has a tie-up $ith )edE4 $hereas El%ee has tie-ups $ith APS and T:T" In the international %usiness, companies normally operate on cost plus %asis and hence the mar!ins are not lucrati&e" 3hile domestic %usiness is more profita%le for companies $ith !ood infrastructure %ac'in!" Both the e4press ma+ors &i2" Blue Dart <,DG mar'et share= and El%ee <(FG mar'et share= are thus consciously concentratin! on the domestic %usiness"

,-

The industry demands hu!e in&estments in technolo!y and infrastructure to pro&ide &alue added ser&ices throu!h product inno&ations" E-trac'in! and tracin! of parcels on a real time %asis, %ar codin! for security purposes has %ecome a norm in the industry" /ompanies are also implementin! the hu% and spo'e model to minimi2e time to deli&ery"

*o!istics Mana!ement is emer!in! as one of the fastest !ro$in! se!ments in the e4press industry" 6s more and more companies stress on Iust-in-time <IIT= re.uirements to prune in&entory costs, supply chain mana!ement is increasin!ly in on outsourced" third #ence, party e4press companies $ith re.uisite in&estments in infrastructure and technolo!y ha&e hu!e opportunity to cash lo!istics mana!ement"

The courier industry as a $hole is e4pected to !ro$ at a rate of 15-(FG o&er ne4t three years" 3hile &olumes in the non-document %usiness are e4pected to !ro$ %y (5-,FG e&ery year, document %usiness is li'ely to $itness sin!le di!it !ro$th rate in &olumes" E4press companies $ill ha&e to mana!e their re&enue mi4 e4tremely $ell to ma4imi2e returns"

The un-or!ani2ed se!ment of the industry is e4pected to feel a pinch in the comin! years due to lo$ pricin! and mar!inal entry %arriers" The industry $ould $itness a consolidation, as esta%lished players $ould le&era!e their infrastructure and distri%ution net$or' to !ra% a lar!er share of the pie" 3ith openin! of the Indian economy, some international players ha&e e&inced interest in settin! up %ase in India" #o$e&er, it is e4pected that these !lo%al ma+ors $ould concentrate more on the international %usiness
,5

and tie-up $ith leadin! players in the country to penetrate the domestic mar'et" 7alue added ser&ices play an important role in couruer industry today ,as courier industryRs success depends upon speed of delie&ery ,and faster response as is needed %y ma+or pharmaceutical industries in india ,the technolo!y play an important role in deli!htin! the customer in india" The companies use inno&ati&e techni.ues to ha&e competiti&e ad&anta!e " I had the oppurtunity to tal' to Tulsi N$(la)ha Mircha"da"e,8 Se"i$r Vice
9reside"t - Mar)eti": + 9r$Cects B*AED6BT *TD ,the competiti&e

ad&anta!e $hich the dhl has $hich leads to customer deli!ht are 9 FA6DART 9 uses technolo!y to pro&ide &alue added ser&ices to the clients $ho opt for it" 3hen the parcel is deli&ered to the addressee and he;she si!ns for it, the deli&ery %oy scans the si!ned receipt $ith a poc'et si2ed scanner"</urrently this scanner is only !i&en to deli&ery %oys in the ma+or cities=" This sends a messa!e to the company1s computer in that city and further to the computer in the client1s city" This computer automatically fa4es the copy of the si!ned receipt to the client" Thus $ithin , minutes of the parcel %ein! deli&ered the client has the confirmation of deli&ery and the recei&ers name"

SENTOR9 Product has %een de&eloped to sa&e time and increase efficiency in smaller Blue Dart computerised locations that are not on the Blue Dart intranet" Cur o%+ecti&e is to loo' at real time information and data flo$" By com%inin! the use of the internet and offline data entry,
,8

SE:TCB allo$s Blue Dart channel partners and Blue Dart offices to interface $ith Blue Dart1s $e%site and retrie&e and transmit data" The user !ets detailed information on in%ound pac'a!es for deli&ery" Apon deli&ery, proof of deli&ery details are entered and updated on Blue Dart1s $e% ser&er" ELBEE COURIERS# Some of our &alue added ser&ice options for enhancin! customer con&enience9 Bill on Delivery (BOD) The consi!nee can recei&e in%ound consi!nments at his e4pense, from multiple ori!ins or consi!nors" Cash on Delivery (COD) The consi!nor sends all his consi!nments $ith frei!ht and statutory char!es paya%le %y the consi!nee, a!ainst deli&ery" Consignment Value Collect (CVC) The consi!nor sends all his consi!nments $ith statutory char!es and the &alue of consi!nment to %e collected from the consi!nee, a!ainst deli&ery" They ha&e uni.ue ser&ice of SMS TRAC) $here user can trac' the position of his consi!nment %y +ust sendin! an sms to company "

DTDC COURIERS
DTDC $ith its $idely esta%lished net$or', %oth nationally and internationally and $ith a dedicated team, offers a full ran!e of ser&ices and support features such as9

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 :e4t day deli&ery to most cities and to$ns $ithin India" Shipment of hea&y load to$ards almost any$here in India" Intra-/ity ser&ices for same day deli&ery a&aila%le at all Metro /ities" Proof of Deli&ery a&aila%le $ithin reasona%le time, at no e4tra cost" /entrali2ed Trac'in! and Tracin! system" E4cellent, relia%le, fle4i%le and &ery cordial ser&ice" E7COURIER7This is the ser&ice $here customer is !i&en an uni.ue id $here he can trac' his consi!nment $heree&er he may %e" Thus it reflects that in courier industry the success depends upon the confirmation of delie&ery as time is a ma+or factor today and companies are tryin! to use technolo!y to enhance consumer satisfaction "

,D

FMC

SECTOR.

India has al$ays %een a country $ith a %i! chun' of $orld population, %e it the 1E5FHs or the t$enty first century" In that sense, the )M/G mar'et potential has al$ays %een &ery %i!" #o$e&er, from the 1E5FHs to the DFHs in&estments in the )M/G industry $ere &ery limited due to lo$ purchasin! po$er and the !o&ernmentHs fa&ourin! of the small-scale sector" #industan *e&er *imited <#**= $as pro%a%ly the only M:/ company that stuc' around and had its manufacturin! %ase in India" 6t the time, the focus of the or!anised players li'e #** $as lar!ely ur%ane" There too, the consumers had limited choices" #o$e&er, :irmaHs entry chan!ed the $hole Indian )M/G scene" The company focused on the U&alue for moneyH plan' and made )M/G products li'e deter!ents &ery afforda%le e&en to the lo$er strata of the society" :irma %ecame a !reat success story and laid the roadmap for others to follo$" Pri1ate !n0u%.ti!n e8.enditure trend0 CA GR +9, )OD 1 )OE 1 )OF F!!d4 t!'a ! 11"FG 11"?G 'e1erage04 Per0!na/ are 1,"-G 11"EG 1-"DG

11"EG 1 :CAGR !1er a de ade

M:/Hs li'e #**, $hich $ere sittin! pretty till then, $o'e up to ne$ mar'et realities and noticed the latent rural potential of India" The !o&ernmentHs
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rela4ation of norms also encoura!ed these companies to !o out for economies of scale in order to ma'e )M/G products more afforda%le" /onse.uently, today soaps and deter!ents ha&e almost EFG penetration in India" Post li%eralisation not only sa$ hi!her num%er of domestic choices, %ut also imported products" The lo$erin! of the trade %arriers encoura!ed M:/Hs to come and in&est in India to cater to 1%n IndiansH needs" Bisin! standards of li&in! ur%an areas coupled $ith the purchasin! po$er of rural India sa$ companies introduce e&erythin! from a lo$-end deter!ent to a hi!h-end sanitary nap'in" Their strate!y has %ecome t$o-pron!ed in the last decade" Cne, in&est in e4pandin! the distri%ution reach far and $ide across India to ena%le mar'et e4pansion of )M/G products" Secondly, up!rade e4istin! consumers to &alue added premium products and increase usa!e of e4istin! product ran!es" So you could see all companies %e it #**, Godre+ /onsumer, Marico, #en'el, Bec'itt Benc'iser and /ol!ate, tryin! to outdo each other in !ettin! to the rural consumer first" Each of them has seen a si!nificant e4pansion in the retail reach in mid-si2ed to$ns and &illa!es" Some $ho could not do it on their o$n, ha&e pi!!y %ac'ed on other )M/G ma+orHs distri%ution net$or' <PLG-Marico=" /onse.uently, companies that ha&e ta'en to rural India li'e chal' to cheese ha&e seen their sales and profits e4pandin!" )or e4ample, currently 5FG of all #** sales come from rural India, and conse.uently, it is one the %i!!est %eneficiaries of this <see ta%le=" Sa/e0 Net .r!"it 18"8G 5,"FG E"EG -"(G

/ad%ury /ol!ate

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#** Marico :estle PLG #y!iene Bec'itt L Benc'iser CAGR gr!3th in /a0t *; (ear0<

1E"1G 1(",G 18"-G E"FG 1,",G

,,"5G (5"?G (5",G 1E"EG ("?G

There are others, li'e :estle, $hich ha&e till date catered mostly to ur%an India %ut ha&e still seen !ood !ro$th in the last decade" The companyHs focus in the last decade has lar!ely %een on &alue added products for the upper strata of society" #o$e&er, in the last couple of years, e&en these companies ha&e loo'ed to reach consumers at the sli!htly lo$er end" Cne of the %i!!est chan!es to hit the )M/G industry $as the UsachetH %u!" In the last , years, deter!ent companies, shampoo companies, hair oil companies, %iscuit companies, chocolate companies and a host of others, ha&e introduced products in smaller pac'a!e si2es, at lo$er price points" This is the sin!le %i! inno&ation to reach ne$ users and e4pand mar'et share for &alue added products in ur%an India, and for !eneral )M/G products li'e deter!ents, soaps and oral care in rural India" 6nother interestin! phenomenon to ha&e hit the )M/G industry is the mushroomin! of re!ional companies, $hich are posin! a threat to %i!!er )M/G companies li'e #**" )or e4ample, the rise of Iyothi *a%oratories, $hich has !i&en sleepless ni!hts to Bec'itt Benc'iser, the UGhariH deter!ent, that has slo$ly %ut surely %uilt itself to ta'e on :irma and #** in deter!ents, and finally, the rise of U6nchorH in oral care, $hich has %ecome synonymous $ith UcatH, $hich $al's a$ay $ith spoils $hen t$o mon'eys fi!ht <#** and /ol!ate=" There are numerous other e4amples of this" 3hat does all this mean for the future of )M/G industry in IndiaN Andou%tedly, all this is !ood for the consumers, $ho can no$ choose a
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&ariety of products, from a num%er of companies, at different price points" But for the players $ho cater to the Indian consumer, the future %rin!s a lot more competition" In this en&ironment, only the inno&ators $ill sur&i&e" )ocus $ill %e the 'ey to profita%ility <ala #**=" )rom an in&estorHs point of &ie$, Indian )M/G companies do offer lon!-term !ro$th opportunities !i&en the lo$ penetration and usa!e in most product cate!ories" To choose the %est in&estment opportunities loo' at the shapers <i"e" inno&ators= that ha&e %een constantly proacti&e to mar'et needs and ha&e %uilt stron!, efficient and intelli!ent distri%ution channels" Mana!ement &ision to !ro$th is the 'ey, as consumers !oin! for$ard are li'ely to %ecome e&en more sophisticated in their demand" 6s success of fmc! sector hin!es around distri%ution system,companies are stri&in! hard to decrease in&entory carryin! cost and try to uselatest technolo!y to decreasethe lead time"6s the Procurement of orders and delie&eryof !oods form the 'ey ,&arious IT ena%led ser&ices lead to faster processin! of orders "The /ustomer deli!ht in this industry means the satisfaction of 'u0ine00 !n0u%er0 i"e" Distri%utors and retailers " The Cpportunity to impro&e co-ordination $ith suppliers is the dri&in! force for %uyer1s enthusiasm" Identifyin! the supply fle4i%ility or lead-time can !i&e an insi!ht into customer e4pectations" De&elopin! comprehensi&e solutions rather than stand alone products and ser&ices as &alue to the customer $ill help %uild customer loyalties" Bapidly chan!in! %usiness en&ironments are dri&in! the need for &endors to retain their %est customers and %uildin! competiti&e ad&anta!e throu!h customer loyalty" 3ith the e&ol&in! needs of B(B commerce, customers are no$ loo'in! for !reater responsi&eness, relia%ility and .uality" #ere the customer is considered to %e a summation of the end
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customers, partners, intermediaries and suppliers" B(B enterprises $or' to$ards creatin! a strate!ically %eneficial %usiness relationship $ith customers &ia multiple channels, understandin! and respondin! to needs $ith a ran!e of products and ser&ices" The %usiness customer is increasin!ly loo'in! at hi!her ser&ice le&els, reduced costs, plus immense &alue addition these %ein! inte!rated $ith processes and systems "Buildin! processes and strate!ies to deli&er customer e4pectations" Data minin! is an elementary part of customer information depository, $hich helps in inte!ratin!, analysin! information and dra$in! meanin!ful conclusions" In&estments in ena%lin! technolo!ies, infrastructure and resources help capture information that $ill su%se.uently help dia!nose performance !aps and disco&er ne$ opportunity areas" Distri%ution and sales In a con&entional distri%ution model, the !oods pass throu!h the traditional /)6 <clearin! and for$ardin! a!ent;depot= redistri%utor <BD= retail-er chain %efore reachin! the consumer"The sale %oo'ed in the company1s %oo's $ould %e the sale to the BD from the/)6" In order that supply chain costs are optimised, it is important to ha&e a clearfi4 on the .uantum of secondary sales from BD to retailer that ta'es place at the BD end"Most companies monitor primary sales and stoc's at the /)6 end %y $ay of dedicated connecti&ity" This $ould ta'e the form of leased lines, 7S6Ts or ISD:connections" of /)6s $ould %e rather limited<%et$een (8 and ,5= at the rate of one ort$o /)6s in each State"Monitorin! BDs, ho$e&er, poses a pro%lem as there are se&eral in num%er and they are spread across the len!th and %readth of the country" In most )M/G companies, the num%er of BDs$ould %e in the thousands dependin! on transaction &olumes" /onnectin! to theBDs is a ma+or challen!e $hich, if o&er-come successfully, $ould ena%le the
-,

company to reap tremendous sa&in!s insupply chain costs"By successfully lin'in! a %ul' of theBDs, the company can monitor sales toand %y them and therefore ha&e a fair de!ree of comfort on its stoc' le&els" This$ould ena%le them to plan in&entories of finished !oods at &arious points, fine tune the production plan and pa&e the $ay for +ust-in-time material purchase pro!rammes" Cf course, if companies can ultimately lin' to retail outlets, cost sa&-in!s $ould %e colossal"The 3e% ena%les them to ma'e a%e!innin! in the form of connecti&ity tothe thousands of BD points" If the retailsector num%erin! in millions is ulti-mately connected to the production unit,the entire supply chain lin'a!e $ould %ecomplete and only the 3e% can pro&ide a means for this" In the meantime, companies ha&e also !one ahead $ith sales force automation %y $ay of hand-held palmtops on" PLG1s feels its assets !lo%al scale, stron! %rands, in-depth consumer understandin! and superior technolo!y com-%ined $ith the uni.ue proprieties of the 3e% can put it amon! leadin! consumer-dri&en, 3e%-ena%led enterprise9 3hat it calls aRdotcom%ined1 company"

PROCTER AND GAMBLE I ha&e tal'ed to Sh$eta God%ole, 6ssociate Mana!er <Pu%lic 6ffairs="She pro&ided &arious inputs $hich helped to ma'e out the use of technolo!y to deli!ht the customers "PLG is usin! an inte!rated strate!y to commercialise the :et that focuses on four 'ey pillars9
--

 /reatin! ne$ consumer rela-tionships De&elopin! ne$ $ays to cre-ate, mar'et and sell its %rands Bein&entin! the supply chain De&elopin! ne$ partnerships PLG estimates e-commerce to represent as much as 1F per centof the retail Internet;home deli&-ery channel %y (FF5, and sees anopportunity for as much as 5 percent of total cost sa&in!s throu!h B(B acti&ity, and much producti&-ity sa&in!s throu!h %usiness-to-employee pro+ects"PLG has ?( %randed 3e% sites,and it e4pects its %rands to dri&e connections throu!h the Internet,helpin! to ans$er .uestions andpro&ide solutions" Cne e4ample of this is its ne$ Mr$ C/ean -e' 0ite+333$%r /ean$ !%," The :et,says the company, !i&es it unpar-alleled reach to consumers and incredi%le speed for iteration of ideas" /onductin! se&eral thou-sand separate consumer research tests each year, PLG %elie&es the :et can sa&e that much time, as $ell as a%out -F per cent of the e4pense" The company says9 QThe Internet $ill help us identify consumer pro%lems and pro&ide effecti&e solutions in $ays that are difficult to do in a paper-%ased or telephone $orld" Good e4amples of this include9$$$"mrclean"com, the Pampers Parentin! Institute at $$$"pam-pers"com, and the TideR:ei!h%our-to-:ei!h%our1 pro-!ramme at $$$"tide"com"QPLG is e4ploitin! the Internet to e4plore lo$-cost;nocost;hi!h-ly effecti&e %rand introductions"The :et allo$s companies to ta'ead&anta!e of the Rdiffusion theo-ry1, to attract early adopters %y tar!etin! throu!h the :et" Thisallo$s a %rand to %e Rseeded1prior to its %road launch" Cnee4ample of this is $$$"therma-care"com, $hich $ill %e used toallo$ purchase of the %randamon! early adopters prior to asu%stantial !eo!raphic

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roll-out"6lso, di!ital %rands ha&e %eencreated to le&era!e the compa-ny1s BLD technolo!y and con-sumer understandin!" These are do$nloaded to companies1 central data $arehouses thorou!h the 3e%" This also initiates a customer relationship mana!ement endea&our, and $ould also form part of a company1s B(/plans"/ustomer relationship mana!ement )ar from times $hen a hi!hly moti&ated sales force $ould suffice, the en&ironment has chan!ed to $arrantin! the maintenance of a $ell-structured data-%ase on customers" Information transfer to and from the $arehouse can %e effect-ed %y the salesforce online" Thus, 3e%-%ased solutions reinforce precious cus-tomer relationships %y !i&in! e&ery out$ard-facin! employee a complete and unhindered &ie$ of e&ery customer alon! $ith a detailed history of his e&ery transaction"This can %e further inte!rated into a3e%-%ased ser&ice application in theform of helpdes's and call centres" This puts customer care a!ents in control of e&ery sta!e of customer mana!ement from sales opportunities, .uotes, %illin! repairs and returns" Besides, they can also address in.uiries and pro%lems 'no$led!ea%ly and authoritati&ely" -e' and e7tai/ing -3hile this !i&es a fla&our of the thin!s to come in terms of the 3e%1s potential to ena%le direct sales, its a%solute potential can %e reached only $hen the 3e% is used as a differentiated medium" The 3e% presents se&eral &alue propositions to an )M/G company" It allo$s for customisation of ad&ertisin! content %ased on customer profile" Thus, there is tremendous scope for enhancin! product promotion and %randin! impact" )or instance, there is the possi%ility of pro&idin! different !raphical interface for each user se!-ment, as in 'ids, youth, $omen, men etc" It lo$ers the cost of deli&erin! infor-mation to the customers" I
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 t can %e used for handlin! .ueries, chec'in! order status, usa!e statements and a host of other product-related information" Bapid pro!ress in the area of electronic commerce can ena%le companies to e4periment $ith ne$ products and ser-&ices" This $ould also include person-alised products in terms of composition and desi!n" It represents a ne$ sales channel for e4istin! products, and ena%les a person-alised relationship %et$een the %uyer and the customer" This $ould he possi-%le throu!h pac'-si2es and prices differ-ent from that a&aila%le throu!h con&en-tional distri%ution systems"

HLL
Palmtops to field-officers so that they can procure orders $hich can help them to process the order in time there%y reducin! the lead time in delie&erin! the product thus ensurin! customer deli!ht " It also helps the distri%utors to %ud!et ,and control in&entory le&els and control reorder le&els $hich optimise the cost" This ensures faster delie&ery and prompt payment" Surf *aundry Ser&ice $hich has catapulted its $ashin! po$der %rand Surf as a !arment care product rather than a mere deter!ent" 6ll that the customer has to do to !et his clothes $ashed $ith state-of-the-art technolo!y is too dial a num%er" #**Hs home deli&ery ser&ices are
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a&aila%le at (FFF,,, and its shampoo %rand Sunsil' offers professional ad&ice on 18FF 11FF11" Thus $e can conclude that Technolo!y has chan!ed the $ay the%usiness $as done earlier "The ser&ices pro&ided to %usiness consumer helps in faster delie&ery and processin! ,thus reducin! lead time and transaction costs "ItHs a &alue addition to current %usiness ,on the other $ay customer " it deli!hts the

CONCLUSION.
The customer is the 'in! today, he has num%er of alternati&es to choose from !oods or ser&ices ,$ith the third $a&e of technolo!y the technol!y is o&erpassin! manual $or' and creatin! a difference %y pro&idin! &alue added ser&ices $hich diffrenciates the company from others "It thus reflects the utility of technolo!y in &arious sectors to retain old customers and to !et ne$ customers " In the %an'in! sector atm has created the difference ,in the courier ser&ices online trac'in! has created the difference industry sms created the difference ,thus continuous ,in cellular inno&ation

accompanied %y technolo!y helps the or!anisation in achie&in! customer

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deli!ht "The concept of /BM today holds the 'ey "The &alue added ser&ices today forms one of the ma+or determinants of customer satisfaction today ,as researchconfirms it ,thus the direction is mo&in! from cost to enhanced ser&ices $hich diffrenciates the product and meets or e4ceeds customer e4pectations "The technolo!y dri&en &alue added ser&ices not only create &alue %ut also de&elops a uni.ueness in product orser&ice ,its application in e&ery sector %rin!s a%out rapid chan!e in transaction processin! ,cost optimisation and re&enue !eneration and most importantly /ustomer trust "It also dri&es the nation to$ards societal !ro$th as it ma'es an indi&idual more adept" The satisfied customer al$ays associates the ser&ices pro&ided %y other $ith his preferred product or ser&ice ,and if it e4ceeds his e4pectations he %ecomes more loyal "Thus customer is %enefited at all an!les thus sa&in! his time,money and ensurin! faster delie&ery of ser&ice "

ANNEDURESB
=UESTIONNAIRE -" Do you o$e mo%ile phoneN a=Oes a=6irtel c=Mtnl %= :o %=#utch d=Idea ("3hich ser&ice do you use N

,"3hat do you loo' for %efore optin! for particular ser&ice N a=/ost %=/onnecti&ity

-E

c=7alue added ser&ices -$ Do you !et influenced %y &alue added ser&ices N a=Oes from the ser&ice N a=Oes %= :o %= :o

5" Do you thin' the &alue added ser&ices meets or e4ceeds your e4pectations

8" If yes , $hich &alue added ser&ices satisfies you most N a=Sms c=Mo%ileBan'in! e=E-mail !=3ap :ame9 6ddress9 Profession9 6!e9 =UESTIONNAIRE %=7oice mail d=Dial up ser&ices f =Information Ser&ices

1"Doyou ha&e %an' account N

a=Oes a=Icici c=#dfc e= Cthers ,$ "6re you satisfied $ith your %an'N %= :o %=Std chart d=S%i ("If yes, in $hich %an's do you ha&e accountN

5F

a=Oes
>$ If yes ,$hyN

%= :o

a=)aster processin! c=:earness to atm e=Security

%=Belationship $ith staff d=7alue added ser&ices

5"Do &alue added ser&ices offered %y %an's ha&e enhanced customer satisfaction N a=Oes %= :o 8" If , yes, $hat do you thin' are the ser&ices $hich satisfies youN a=Internet Ban'in! c=Shoppin! e=Payment of %ills :ame9 6!e9 Profession9 6ddress9 %=Phone Ban'in! d=E-Transfer

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