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Market analysis of Zero billing Clients

A PROJECT REPORT ON

“CUSTOMER SATISFACTION SURVEY (INACTIVE CORPORATE


CUSTOMERS) OF SAFEXPRESS IN NOIDA AND GHAZIABAD”

Undertaken at

Project Report Submitted To

Balaji Institute of Modern Management (BIMM) Pune

In

Partial Fulfilment of the PGDM (Sales and Marketing) Curriculum for


Academic Year 2016-2018
By

Bhavesh Chandra Roy


(BIMM-1618136)

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Market analysis of Zero billing Clients

Declaration
I, BHAVESH CHANDRA ROY, Student of BIMM – Balaji Institute of
Modern Management, Pune, hereby declare that this project entitled
“CUSTOMER SATISFACTION SURVEY (INACTIVE CORPORATE
CUSTOMERS) OF SAFEXPRESS IN NOIDA AND GHAZIABAD” for
Safexpress Logistics and Supply chain management, is a bonafide record of
work done by me during the course of summer internship project work of PGDM
program and all contents and facts are prepared and presented by me without any
bias. I also declare that it has not previously formed the basis for the award to me
for any degree/diploma associate ship, fellowship or other similar title, of any
Institute/Society.

Date: 30 June 2017

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CERTIFICATE

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Market analysis of Zero billing Clients

Acknowledgement
I would like to acknowledge all those who have been instrumental in shaping up
this project with their guidance and inspiration.
I feel immense pleasure in expressing my sincere thanks and deep sense of
gratitude to Mr. Sanjay Raj for his time and valuable efforts. He constantly
encouraged me right from the selection of the title to final preparation of my
project. He has been a constant source of knowledge, information, help and
motivation for me. I am thankful for his constant inspiration and guidance
throughout the project.

I express my sincere thanks to Mr. Sandeep Dham for giving me an opportunity


to work with him through this project. I take this opportunity to express my
profound sense of gratitude whose sincere co-operation and guidance enabled the
project to assume its systematic shape.

I am also thankful to the Retail team, HR of Safexpress Pvt. Ltd., whose insights
were of great help in arriving at the findings.

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Preface

A Project is a scientific and systematic study of real issues on a problem with the
application of management concept and skills. The study can deal with small or
big issues in any division of an organisation. It can be case study where a problem
has been dealt with, through the process of management. The essential equipment
of a project is that, it should contain scientific collection of data, analysis and
interpretation of data leading to valid conclusion.

Summer Training is an essential part in PGDM curriculum. It enables the student


to share the real experience in the industry. For my summer training I was placed
in Safexpress for the period of eight weeks in Noida and Ghaziabad region of
Uttar Pradesh.

I underwent the project under the heading “CUSTOMER SATISFACTION


SURVEY (INACTIVE CORPORATE CUSTOMERS) OF SAFEXPRESS
IN NOIDA AND GHAZIABAD”

This Project report tends to give a sharp picture of the different parameters which
affects the dealer’s decision for selecting a logistics and supply chain
management company.

I hope, this study can be helpful in understanding the reasons behind customer
inconsistency and can help Safexpress in gaining back a few customers.

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TABLE OF CONTENTS
Chapter No Topic Page No.

1 CONTEXTUAL BACKGROUND

A. Brief introduction of the Company 8-9

B. Industry and Market conditions 10-12


C. Product or Service being studied 13-14
D. STP and SWOT
15-16

17
E. Purpose of study with Objectives
2 LITERATURE REVIEW 18-21

3 RESEARCH METHODOLOGY 22-23

A. Research Design for primary data collection


B. Primary data and Secondary data
C. Sampling Method
D. Sample Size
E. Research Instrument used
F. Processing and collection of data
G. Statistical or Analytic Techniques used

4 Data Analysis and Interpretation 24-35

5 Summary

Finding(s) of the study 36

37
Recommendation(s)

Limitation(s) of the study


37

6 Bibliography/Courses/References 37

Appendix
38-40

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Executive Summary

This Project entitled “customer satisfaction survey (inactive corporate customers)


of safexpress in noida and ghaziabad”, starts with a rationale behind preparing
the report, objective, a brief history of the company and covers a variety of topics,
such as competitor analysis, customer’s satisfaction and its gaps.

The project was focused on the study and analysis of data collected from the
customers who are dealing with various companies in the logistics and supply
chain industry. The purpose was to know the importance level of various
parameters which affects the customer satisfaction, knowing the parameters on
which the company lacks, satisfaction level of customer with Safexpress,
improvement areas for Safexpress.

Factors like Rate per consignment, transit time, documentation & other
formalities required, post transaction services are few of the determinants of
customer’s satisfaction and consistency. During my two months internship, I
went to 85 companies and interviewed the concerned person through a
questionnaire. The data was collected in the Noida and Ghaziabad region, which
reveals some facts about the brand image of Safexpress in the minds of the
customers and satisfaction derived by them. At last I have concluded the report
with the interpretation of the data and information collected is presented with the
help of the charts and diagrams.

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Chapter 1
Introduction
A. A brief introduction to Safexpress and Indian logistics industry

Company Background

 Safexpress began its journey in 1997 with a mission of delivering logistics


excellence to its customers and ensuring their success. Today, the firm has
firmly entrenched itself as the 'Knowledge Leader' and 'Market Leader' of
supply chain & logistics industry in India.
 Safexpress offers a wide range of innovative supply chain services
including Express Distribution, 3PL and Consulting. The firm provides
value-added logistics services for 9 different business verticals ranging
from Apparel & Lifestyle, E-commerce, Healthcare, Hi-Tech, Publishing
to Automotive, Engineering & Electrical Hardware, FMCG & Consumer
Electronics and Institutional.
 Safexpress offers cutting-edge logistics solutions to its customers, enabling
them to focus on their core competencies. The firm adds maximum value
to businesses at every level, right from providing world-class warehousing
support to ensuring time-definite deliveries of goods anywhere in India.
 Over 610 destinations, spread across 36 states and union territories of
India. Over 4500 GPS-enabled, all weather-proof, containerized vehicles
on more than 1000 routes, linked through 48 hubs and mega hubs.
Delivering more than 80 million packages a year. Traversing over 6,00,000
kilometres a day.

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Market analysis of Zero billing Clients

Vision
"To revolutionize the Supply Chain & Logistics industry in India and
consequently contribute to the growth of our economy. By way of our
unsurpassable expertise in providing Value-added Supply Chain & Logistics
services, we will enhance our 'Knowledge Leadership' and 'Market Leadership'".

Mission
"We shall adopt and internalize a work culture which demonstrates a 'We Can
We Will' attitude to reflect in our daily responsibilities so as to far exceed our
objectives, consistently striving towards market dominance. We will create
historical landmarks forming a strong edifice for the future overcoming all
obstacles proactively, as our personal responsibility and commitments are to
create delight for the customer with impeccable personalized services".

 We believe in nurturing a healthy Relationship with our people, partners


and customers.
 We constantly strive to Evolve from an 'Effort-based Organization' to a
'Result-based Organization'.
 We ensure that our Self-Discipline allows a complete ownership and
accountability of our work as well as compliance to our policies and
processes.

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INDUSTRY AND MARKET SCENARIO


 Logistics is regarded as the backbone of the economy, providing efficient
and cost effective flow of goods on which other commercial sectors
depend. Logistic industry in India is evolving rapidly, it is the interplay of
infrastructure, technology and new types of service providers, which
defines whether the logistic industry is able to help its customers reduce
their costs in logistic sector and provide effective services.

 Despite of the weak economic sentiments, the logistics industry continues


to witness growth due to the growth in retail, e-commerce and
manufacturing sectors. The Global Logistics sector was expected to grow
10-15% in the period 2013-14. Logistics industry is expected to reach over
USD 2 billion by 2019. Rise of e-commerce logistics and increased
domestic consumption will lead the way for the industry in the coming
years. With a promise of growth and improvements, the service oriented
logistics industry is ready to expand beyond the horizons in the latter half
of this decade.

 Supply chain costs in India represent as much as 13 percent of the GDP.


This is almost double the percentage in developed countries: in the U.S.,
supply chain costs amount to 8.5 percent of the GDP.

ARC Advisory Group categorizes supply chain challenges in India into two
groups: demand side challenges and supply side challenges.

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Future prospects

The logistics firms are moving from a traditional setup to the integration of IT
and technology to their operations to reduce the costs incurred as well as to meet
the service demands. The growth of the Indian logistics sector depends upon its
soft infrastructure like education, training and policy framework as much as the
hard infrastructure.
To support India’s fast paced economy growth of logistics industry is very
essential. It is estimated that the Indian logistics industry will continue to show
robust growth of 10-15% annually, leading the pace of growth of the economy at
large.
The global economic outlook, indeed that of India is expected to significantly
improve as India Inc begins to tackle the economic downturn. With the current
government many policies are expected to be implemented which will give a
fresh impetus to India’s growth engine particularly in the corporate and SME
sector which in turn will expand demand for the logistics sector.
With the implementation of GST, the logistics companies, which are currently
forced to set up many small warehouses across multiple cities can set up just a
few, big warehouses region wise and can follow the hub-and-spoke model for
freight movement from the warehouses to the different manufacturing plants,
wholesale outlets, retail outlets and the various POS. This growth is backed by
the boom in the e-commerce sector and expansionary policies of the FMCG firms.
This has increased the service geography of the logistics firms but they also have
to meet the demands of quick delivery and tight service level agreements. The
industry has moved from being just a service provider to the position which
provides end to end supply chain solutions to their customers. Thus, all this has
paved the way for further growth of Logistics and Warehousing industry in the
coming years.

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Market analysis of Zero billing Clients

SERVICES BEING STUDIED

Surface
A pioneer in Express Distribution, Safexpress continues to innovate its offerings.
We ensure time-definite deliveries through our robust network supported by 'hub
and spoke' model, which is intended to minimize the distance travelled. This
offering enables 'just in time' and lean supply chain requirements of the
customers. This service also allows them to plan their in transit inventory – an
important input for advanced materials and distribution requirements planning.
We fully utilize our infrastructure, technology resources, research and
development, network, fleet and our ecosystem of partners to provide an
unrivalled fastest transit time in the industry.

KEY FEATURES OF THE SERVICE ARE


 Fastest transit-time in the industry
 Largest Supply Chain Network
 Guaranteed On-time Door-to-Door Express Delivery
 Largest fleet of 4000 vehicles in the Industry
 ISO-9002 certified, all-weather-proof, containerized vehicles
 Multi-modal freight services with varied customized solutions
 State-of-the-art Hub & Spoke Model
 Advanced 'Track and Trace' facility
 24 x 7, 365 days a year operations

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Market analysis of Zero billing Clients

 Dedicated, well trained and experienced workforce


 Longest direct haul network in India, with direct routes running between
strategic locations
 Proactive clearance of Octroi& Entry Taxes to provide seamless transfer
of goods
 Proactive reporting and online track & trace to ensure pin-point accuracy
in delivery schedule

Safe Air
Safe Air is our specialized air service that complements the surface logistics in
offering optimal multimodal solutions and faster deliveries. Our experience in
surface and air network design results in cost effective routing of valuable air-
worthy cargo

This door-to-door pickup and delivery service is backed by 20 state-of-the-art air


hubs. Air cargo requires a careful handling due to its subtle and time sensitive
nature. A dedicated team of specialized air freight experts man these hubs 24x7.
This team has expertise and experience in completing the various documentation
formalities required for different product categories across different airlines
travelling to different states.

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Market analysis of Zero billing Clients

STP and SWOT of Safexpress

SAFEXPRESS

Segment  Businesses with transportation needs

 Diverse business verticals like Apparel & Lifestyle,


Healthcare, Hi-Tech, Publishing, Automotive,
Engineering & Electrical Hardware, FMCG & Consumer
Target Group Electronics, and Institutional

 'Market Leader' and 'Knowledge Leader' of the Indian


Positioning Supply Chain & Logistics Industry

SWOT Analysis

1. Credit & Retail basis pricing strategy


2. Good brand presence in India
3. It has great amount of Creative Service ideas

4. “Largest Logistics service Provider in India” by Limca


Book of Records in 2002

5. Has a reach to all 627 districts in 35 states and union


territories in India

6. It has more than 3600 GPS-equipped all-weather proof,


Strengths containerized vehicles

1.Marketing and advertising is lesser than global brands


Weaknesses 2.Lower adoption of advanced technology

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Market analysis of Zero billing Clients

1.Diversification in more innovative services


2.Increasing firms in manufacturing industry
3.It has 3600 weather proof ISO-9002 vehicles which can be
Opportunities used for increasing range of services

1.Big competitors with advanced technology


2.Unorganised transportation sector
3.Entry and penetration of international players and domestic
Threats players

Competition

1. Gati
2.DHL
Competitors 3.Blue Dart

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D. Purpose of Study/Research Question:

Customer Satisfaction Survey (Inactive Corporate Customers)

E. Objectives:

Primary Objective

 To understand the reasons due to which certain customers of


Safexpress have become inactive.

Secondary Objective

 To understand the behaviour of inactive retail customer of


Safexpress
 To examine the performance of Safexpress in the market.
 To determine the factors that influence the dealers decisions while
selecting a logistics company
 To give effective suggestions to improve the market performance of
retail sector of Safexpress.

F. VARIABLES:

INDEPENDENT VARIABLES

 Rate per consignment


 Transit time
 Documentation required
 Services

DEPENDENT VARIABLE
 Customer Satisfaction

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CHAPTER-2

LITERATUTRE REVIEW

Companies today can’t afford to lose their customer base and repeat business.
While focusing on new customer acquisition should always be a goal, it can cost 7
times more to gain a new customer than retaining a current one. Brands that excel
at winning repeat business get 76% of their revenue from repeat customers (RJ
Metrics).

It’s easier to sell to your existing customers than it is to sell to new customers.
However, the inevitable attrition occurs for the majority of brands. A marketer
typically has a list of customers, with as many as 25-50% of these people
classified as “inactive”. These inactive buyers no longer need to sit dormant, there
is an option to reactivate these opt-in consumers and drive additional revenue. By
every measure, reactivation pays tremendous dividends when well executed,
demonstrating that successful brands must view reactivation as an ongoing
strategic tool rather than a one-and-done activity.

When it comes to both customer acquisition and retention, email ranks higher
than any other strategy according to Target Marketing’s Media Usage Survey.

According to eMarketer, email is also cited as the most effective digital


marketing channel for customer retention in the U.S., while also serving as the
foundation of the marketing-to-sales funnel for the majority of B2B and B2C
marketers.

According to Ruth Stevens as marketing advances, most professionals are well


aware by now of the importance of retention and reactivation in optimizing the
value of the customer base. The facts are clear: we know that it costs far less to
reactivate a dormant customer than to acquire an entirely new one; we know that

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Market analysis of Zero billing Clients

recent activity is a powerful indicator of customer lifetime value; and we know


that investments in retention marketing deliver the highest ROI of any strategy.

But some marketers may still be missing out of some of today’s best practices in
reactivation marketing. Let’s review the strategies that are most effective in
stimulating a renewed relationship with your dormant customers, and reducing
customer defection and churn.

Reactivation marketing applies to all kind of product and services categories,


from consumer to business markets. The tactics and tools have been developed
and refined to a fine art in the area of subscriptions and replenishment types of
marketing. Let us learn from these trailblazers.

If you need backup to justify your investment in customer reactivation, here are
some useful stats:

 A 5-point decrease in defections can lift per-customer profit by 25% to 85%


(Reichheld, The Loyalty Effect)
 Retaining an additional 2% of customers has the same effect as cutting costs
10% (Davidow and Malone, The Virtual Corporation)
 It is 4.8 times cheaper to sell to a pre-existing inquirer than to generate a new
lead (Aberdeen Group research)
Reactivation can be viewed as a subset of retention marketing. If a customer has
stopped interacting with you, this is very likely an early indicator of upcoming
customer loss, or defection. So it’s essential to identify the signals early, and set
up intervention activity to prevent the customer from moving further away.

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Market analysis of Zero billing Clients

Before you can plan your best intervention tactics, you need to develop answers
to several key questions:

1. How should you determine the definition of inactivity in your


business? For many, the end result of inactivity is known as “churn.” The
churn rate is derived from dividing the number of customers lost in the period
by the number of customers you had at the beginning of the period. But the
path to purchase differs with each business. Buying a new car is very different
from replenishing your supply of moisturizer. This means identifying the
interim metrics that you need to keep an eye on. A car dealer may look at oil
changes as an indicator of engagement. A department store will look at such
indicators as product purchase frequency and timing, with interim metrics like
email open and click-through rates.
2. What are the reasons for customer dormancy? It may be that your
customers had a problem with your product or service. In which case, you
must strive to fix the problem. It may be that they no longer have a need. In
which case, you need to determine whether there’s another way to serve them
profitably. Or it may be that they have left for a competitor. In which case,
you must institute a win-back effort. There are many possible reasons. A quick
survey by email or phone will help you identify them. Each will likely require
a different strategic approach.
3. Is the customer worth reactivating? Some customers simply cannot be
served profitably. For them, it may be a better strategy to let go, instead of
investing more in re-engagement. Thus, an assessment of projected customer
value will help you determine the appropriate amount of reactivation
investment, if any.

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Market analysis of Zero billing Clients

4. How will you know success when you see it? For many companies,
reactivation is measured by conversion to repurchase. A useful metric is the
win-back rate, calculated as the number of reactivated customers divided by
the number of inactive at the beginning of the period. For your business, the
success metric may be something different. The point is to identify the most
appropriate metric in advance, and track the results of your reactivation
program over time.

DATA DECAY

Customer data decays at an alarming rate. Data decays at an average rate of 2


percent per month, which means you can expect 25 to 30 percent of your
organization’s contact data to go bad each year under normal circumstances.
People move, businesses change, people get new jobs, email conventions change,
and the list goes on.

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Market analysis of Zero billing Clients

CHAPTER 3

THE RESEARCH METHODOLOGY

a) INTRODUCTION
The design of any research project requires a considerable attention to the
research methods and the proposed data analysis. Within this section, I
have attempted to provide some information about how to produce a
research design for a study. I offer a basic overview of the research
methods portion of a research proposal and then some data analysis
templates for different types of designs.
b) TYPE OF DATA
Primary data: - Questionnaire
The survey is conducted by making prior appointments with the
respondents and visiting the respondents preferred location at his/her
convenient timings. Then a face to face interview has been conducted and
the questionnaire is filled up to collect the primary data for analysis.
The questionnaire mainly had closed ended questions.
c) RESEARCH DESIGN FOR PRIMARY DATA COLLECTION
Research Design: - Descriptive Research
Blend of Descriptive method has been used in this research for the
collection of data. As the research is related to the study of customer
activeness, which can more effectively be studied through direct questions
personal interview and informal talks. Also, considering the time
constraints, descriptive research leading to conclusive result is the most
suitable design for this research.
Target Population:
The inactive retail customer of Safexpress were the targets. The person
who used to take major business related decisions, was interviewed.

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d) Sampling: - Convenience Sampling


Convenience sampling is a non-probability sampling technique where
subjects are selected because of their convenient accessibility and
proximity to the researcher.
In all forms of research, it would be ideal to test the entire population, but
in most cases, the population is just too large that it is impossible to include
every individual. This is the reason why most researchers rely on sampling
techniques like convenience sampling, the most common of all sampling
techniques. Many researchers prefer this sampling technique because it is
fast, inexpensive, easy and subjects are readily available.
e) Sample Size: The study is carried out in Noida & Ghaziabad region. This
report has been done on the basis of the 85 samples collected.
f) Research instrument used: Questionnaire
g) Processing and collection of data:
I visited inactive retail customers to get the questionnaire filled by them.
h) Analysis:
The analysis is done on the basis of the primary data and secondary data
collected from internet. Then these data will be reviewed, correlated and
analysed to come to any result.

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Market analysis of Zero billing Clients

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

1) Ranking of factors considered while selecting a logistics company.

Statistical Test: Friedman test


Variable and Measurement: Respondents are asked to tell how important the
Following factors are while selecting a financing Company.
1. Transit Time
2. Pricing
3. Documentation required
4. Services
Each factor was measured on a 5 point scale (1 = Most Important, 5 =Least
Important)

Test Hypothesis:
H0: Factors influencing choice of a supply chain management and logistic
company do not differ in magnitude of importance (mean ranks are equal).
H1: Factors influencing choice of supply chain management and logistics
company differ in magnitude of importance (mean ranks are not equal)

Level of Significance: alpha (α) = 0.05

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Observations:
TABLE: 1
Test Statisticsa

N 85

Chi- 47.762
Square

Df 3

Asymp. .000
Sig.

TABLE: 2

a. Friedman Test

Mean rank

Transit Time 2.35

Pricing 2.75

Documentation 1.81
Formalities

Services 3.09

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Conclusion
Since the p value (0.000) is less than the level of significance 0.05, the null
hypothesis is rejected. Hence it is concluded that factor influencing choice of
logistics company significantly differ in magnitude of importance.
Interpretation
From the mean rank table we know that services with a mean rank 3.09 play
the most important role for customers at the time of selecting a logistics
company followed by pricing offered by the company and then transit time
while documentation formalities is considered to be the least important.
2. Ranking the performance of Safexpress
Statistical Test: Friedman Test
Variable and Measurement: Respondents are asked to tell what they think
about the performance of Safexpress on the following factors
1) Services
2) Pricing
3) Transit Time
4) Documentation Required
Each factor was measured on a 5 point scale (1= highly dissatisfied, 5
highly satisfied)
Test Hypothesis:
H0: Factors affecting the level of satisfaction towards Safexpress do not differ
in magnitude of importance (mean ranks are equal).
H1: Factors affecting the level of satisfaction towards Safexpress differ in
magnitude of importance (mean ranks are not equal).
Level of Significance: alpha (α) = 0.05

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Market analysis of Zero billing Clients

TABLE: 3
Test Statisticsa

N 85

Chi-Square 17.146

Df 3

Asymp. Sig. .001

TABLE: 4
a. Friedman Test

Ranks

Mean
Rank

Services 2.30

Pricing 2.22

Transit Time 2.69

Documentation Required 2.79

Conclusion:
Since the pvalue (0.000) is less than the level of significance 0.05, the null
hypothesis is rejected. Hence it is concluded that factors affecting the level of
satisfaction for Safexpress significantly differ in magnitude of importance.

Interpretation:
From the rank table, we can find that services have a mean rank of 2.30, pricing
has a mean rank of 2.22, transit time has a mean rank of 2.69, documentation
required 2.79.

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3) Chances of conversion of an inactive customer to an active customer once


their complaints are resolved
Statistical Test: Cross Tabulation
Observation:
Cross tabulation

Reasons
Rate Service business is
issue Issue down other Total
Conversion Yes 14 13 10 2 39
No 8 14 4 4 30
maybe 0 13 1 2 16
Total 22 40 15 8 85

Interpretation: Out of total 85 inactive customers 39 say that they are ready to
become active if their issues are resolved. 16 are not sure about it and 30 are not
ready to convert.

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Market analysis of Zero billing Clients

4) To understand the reasons due to which certain customers of Safexpress


have become inactive

Graphical representation of data:

Chart 1

Reason behind Inactiveness

18%

9%
47%

26%

BUSINESS IS DOWN OTHERS RATE ISSUE SERVICE ISSUE

INTERPRETATION

 47% of customers rated service to be the main reason behind their


inactiveness.
 While 26% have rate or pricing issues with the company
 18% customers accept that due to a decline in their own business they
have not been able to give business to Safexpress.

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Market analysis of Zero billing Clients

4) To find out the share of other logistic players with whom the inactive
customers of Safexpress are currently working

CHART-2

WHO IS YOUR OTHER LOGISTICS


PROVIDER?
VRL
DHL
12%
16%

TCI
15%

GATI
19%

OTHERS
13%

LOCAL
TRANSPORTERS
25%

INTERPRETATION

 25% of total inactive customers say that they use local transporters to
send their consignments, followed by 19% with Gati, 16% with DHL
and 15% with TCI.

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5) The time period for which the customers were associated with
Safexpress before becoming inactive

CHART-3

Time Period Of Activeness

18% 21%
1-2 YEARS
15%
2-4YEARS
LESS THAN A YEAR
46%
MORE THAN 4 YEARS

INTERPRETATION

 46% of customers were active for a period of 2-4 years and then
became inactive
 While 15% of customers didn’t like the services provided by safexpress
in the initial stage only and thus became Inactive within a year.

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6) Monthly potential of inactive customers of Safexpress

CHART-4

Monthly potential in terms of rupees

11%
7%

29%

22%

31%

100000 and above 10000-20000 20000-40000 40000-60000 60000-100000

INTERPRETATION

 31% customers out of the total sample have a monthly business potential
of Rupees 40000-60000
 While 11% customers have the potential to give the business of more than
100000 per month

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Market analysis of Zero billing Clients

7) To see whether resolving the complain/ claims of inactive customers will


result in retaining the customers back or not

CHART-5

If your complain/claim will be


resolved, will you be interested in
continuing the business?

35% Maybe
46% No
Yes

19%

INTERPRETATION

 46% Customer agree that if their complain is resolved then they will be
interested in doing the business again.

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Market analysis of Zero billing Clients

8. Rating the overall performance of Safexpress

CHART-6

Rate the performance of Safexpress on a scale of 1 to 5


(1 being least satisfactory & 5 being most)

33
35
28
30
25
20 16

15
10 5
3
5
0
1 2 3 4 5

INTERPRETATION

 33 out of 85 customers have rated the overall performance of safe express


as 3 out of 5.
 16 out of 85 believe that the performance of Safexpress is below average

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Market analysis of Zero billing Clients

CHART-7

Will you refer Safexpress to others?

41% Maybe
42%
No
Yes

17%

 42% of the total customers will refer Safexpress to others, 41% are not
really sure about it and 17% won’t refer it to others.

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Market analysis of Zero billing Clients

CHAPTER-5

FINDINGS AND RECOMMENDATIONS

5.1 Finding

1. According to table number 1 service is the most important factor and the
documentation required is the least important factor while selecting a
logistics company.
2. From the table of cross tabulation we find that majority of inactive
customers are ready to convert but there are still many customers who are
not ready to convert even if the problem is resolved.
3. According to chart 1 majority of customers have become inactive due to
service issues and the next most important reason is rate issues.
4. According to chart 2, 25% of the inactive customers are currently working
with local transporters while GATI at 19% is the most used logistic player
in the organised sector, while DHL, TCI and VRL are also strong
competitors.
5. According to chart 3, 46% of the inactive customers were active for a
period of 2 to 4 years but started facing issues after that.
6. Around 31% of inactive customers have a monthly potential of Rs 40000-
60000 and 11% have a monthly potential of more than Rs 100000.

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Market analysis of Zero billing Clients

5.2 Recommendations

1. Work on an easy and unified pricing system through which customers can
calculate their freight charges by themselves.
2. Work on attributes where Gati is positioned well.
3. Launch awareness drives for Safexpress mobile application.
4. Join hands with Indian railways for better and faster delivery.
5. Try to give the customers a better value for money

5.3 Limitations

 Difficult to cover the whole Ghaziabad and Noida region in 2 months.


 The sample size just gives an approximate picture of both the areas.
 Since the customers are inactive their response may be biased
 It was difficult to get data about other competitors
 Many customers were not ready to talk and share information.

5.4 REFRENCES

 http://www.safexpress.com/
 https://blog.help.com/2015/04/20/3-steps-to-reactivate-churned-
customers/
 http://www.logisticsindia.net/Safexpress_Logistics_India
 http://www.iamwire.com/2017/04/indian-logistics-industry-
scenario/151331

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Market analysis of Zero billing Clients

APPENDIX

QUESTIONNAIRE

1. Name of the organisation


Concerned person
Mobile No.

2. Name the type of business in which you are currently involved


____________

3. With which logistics company are you currently associated

 Gati
 DHL
 VRL
 TCI
 Local transporters
 Others________

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Market analysis of Zero billing Clients

4. What is the level of importance associated with the following factors


while selecting a logistics company (on a scale of 1 to 5 rate in order of
importance 5 being most important 1 being least important?)

FACTORS Most Important Somewhat Not so Least


Important important important important
TRANSIT TIME
PRICING
DOCUMENTATION
REQUIRED
SERVICES
OTHERS

5 .For how long were you an active customer of Safexpress?


 less than a year
 1 year -2 years
 2 years-4 years
 more than 4 years

6. Monthly potential of in terms of rupees?


 10000 – 20000
 20000 – 40000
 40000 – 60000
 40000 – 100000
 100000 and above.

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Market analysis of Zero billing Clients

7. What are the reasons that you are no longer an active customer of
Safexpress?
1. Service issues
2. Pricing issues
3. Transit time
4. Pending complaints
5. Others

8. If your complain/claim will be resolved, will you be interested in


continuing the business
 yes
 no
 maybe
9. On a scale of 1 to 5 rate the performance of Safexpress on the following
factors (1 being highly dissatisfactory and 5 being highly satisfactory)

FACTORS 1 2 3 4 5
SERVICES
PRICE/RATE
DOCUMENTATION
FORMALITIES
TRANSIT TIME

10. On a scale of 1 to 5, rate the overall performance of Safexpress, (1 being


highly dissatisfactory and 5 being highly satisfactory)

(Highly dissatisfactory) 1 2 3 4 5 (Highly satisfactory)

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