CUSTOMER RELATIONSHIP

MANAGEMENT

MAHINDRA FIRST CHOICE SERVICES

LIMITED(MFCSL)-PARENT
COMPANY(M&M)

Submitted by:
Group 11 Section 1
FT203059 PRANIT KUMAR
FT203090 TUHINA VERMA
FT203077 SIMRAN JAGGI
FT203062 PRATIK KARAMCHANDANI
FT204084 SUBODH MISHRA
INTRODUCTION: THE MAHINDRA GROUP
 Mahindra first choice services Ltd. (MFCSL) was established in 2008, Mahindra and
Mahindra are parent company of MFCSL. By 2014 MFSCL created a network of 28
company owned workshops and company operated workshops also, it had a total
turnover of rupees 300 million also. Mahindra is one of the largest corporate houses
in India and is having business interests in industries like aerospace, construction,
energy, finance etc.

BUSINESS ENVIRONMENT ANALYSIS

 The Indian automobile industry was not doing well and growth was not there.
 But automotive aftermarket industry consisting of products and services was doing
good as the customers were holding on to their vehicles for longer duration and
margins on new car sales was decreasing.
 Although service markets were fragmented but the advances in vehicle technology
allowed the scope for consolidation.
 The whole aftermarket business was driven by no. of cars on the road.
 Boom of internet also impacted the industry
 The expected reduction in no. of outlets was maximum for small retailers and the
capital needed to set up a workshop for C segment cars was very less.

INDIAN AUTOMOTIVE AFTERMARKET

 This market consisted of 2 main segments: spare parts and service
 SPARE PARTS: -
1. Production of parts was divided among original equipment manufacturers,
Original equipment suppliers and generic manufacturers.
 2. OEMs largely relied on their own distribution channels and sold the parts either
through directly owned or franchised dealers.
 3.OESs were able to supply OEMs directly and can use independent distributors also
that’s why they were having an edge.
 SERVICE:-
1.This business was split among OEM-owned workshops, OEM-authorised
workshops, OES workshops, multi-brand chains and independent garage.
2.Scope of consolidation in this segment was present.
CUSTOMER ANALYSIS

 Indians have the tendency to hold on to their vehicles for a long time as compared
to European and Chinese; in India, the average life of a car was 17 years.
 Indian customers are highly price sensitive and for them cost of service and
availability of parts is important.
 The distance between the customer and the service station is very important in
selecting a particular service station, catchment area with a radius of seven to eight
kilometres is considered as the ideal market area for its workshops.
 The potential revenue from a customer over a vehicle’s entire lifecycle was Rs.18000
to Rs.20000, if customer retention was 100 per cent.
 Most of the customers were distance phobic. Customers preferred free pick-up and
drop-off services in case of longer distances.
 Various criteria for market segmentation selection are-
 1.Business owners
 2.Fleet owners
 3.Private owners
 4.Life cycle stage of the car
 5. The Car maker
 6.The Owner’s service needs
 7.Owner’s personality types, which were:

Gearheads: knowledgeable and wanted best for their cars, they demanded best value for
money.

Flaunters: These were attention seekers and were influenced by new tech and products
and by their social circles. They were ready to spend a lot of money on their cars.

Epicures: affluent and had refined tastes were earning high salaries.
Functionalists: They were value seekers. Spent less on their cars and were not up to date
on new developments.

COMPETITION ANALYSIS
1) My TVS: One Stop Shop for Servicing and Spare Parts
· The company was seen moving focus from franchise outlets to COCO
workshops
· Out of the 33 COCO workshops present, 5 were TATA authorized outlets
· My TVS had three joint ventures and one was in the pipeline – Gujarat, Kolkata
and Kerala (Delhi being in the pipeline)
 · Its operational model focussed on spare parts supply, manpower training and
branding
· Franchises enjoyed a high degree of autonomy in terms of operations

2) Carnation: Multi-brand Auto Solution

· Carnation’s workshops were spread across Northern, Western and Southern
parts
· Shifted focus to general repair and body shop repair and closed down its spare
parts ad insurance activities
· 17 out of 24 COCO service workshops were functional
· Maximum revenue was generated by the Northern region followed by the
Western region and then the Southern region

3) CarZ: High Tech Service Centre for All Car Servicing Needs
· With 17 COCO workshops, CarZ provided service operations, accessories, POCs,
insurance and body shop repair
· Confined to the South region, 80% of its outlets were located in Andhra Pradesh
· The original goal of the company was to be a one-stop shop for all car-servicing
needs
· Focus remained confined to premium cars and body shop repairs

4) OEMs
MFSCL wanted to differentiate itself from OEMs in a few critical areas:
· It relieved the multi-car owners of liaising with OEM workshops for different
cars thereby saving the time and hassle of dealing with various vendors
· It relieved consumers of the stress of searching for vendors who want to deal
with various price propositions and comparing service offering every time they
needed a service
· The primary focus was on repairs of the car rather than replacing parts which
was the approach taken by OEMs generally
MFSCL offered consumers a better value for money proposition

5) Independent Garages
· Provided convenient service at low price points
· MFCSL wanted to counter the competitive threat by offering better service
quality and skilled manpower using genuine parts and honouring delivery time
commitments.

MAHINDRA FIRST CHOICE SERVICE LIMITED

 Established in 2008.
 They had 28 COCO workshops and a turnover of Rs.300 million.
  They were focussed on category A and B cars [Rs. 3,00,000 to Rs. 8,00,000] and
mechanical repairs.
 They had 4 types of services:
1.Preventive Maintenance Service - regular services
2.Running Repairs - replacement or repair of mechanical parts due to damage from
wear and tear or very minor accidents
3.Minor Denting and Painting jobs
4.Value Added Services such as car polishing, cleaning, grooming etc.

MFCSL’s CRM DESIGN

Customer Database: -
1. An effective customer database could be created by collecting the details from every
customer owning a car in the radius of 7 to 8 kms of a MFCSL workshop.
2.Customers database can also be collected with the help of third party about
prospective car owners. Tele marketing and online marketing can also be used.

Database Analysis: -
1. The database would contain the transaction history, spending details and other
details like registration certificate details, on the basis of type of services they
choose, it could be estimated if they are business owners, fleet owners or private
owners. Also, the CLV of the customers could be determined over a period to know
their profitability.

Customer Selection:
1.Once the customer analysis is done and patterns are understood, customers could be
segregated based on their purchase rates, lifestyles, size of wallet etc and they can be
divided into gearheads, flaunters, epicures and functionalists.

Targeting Tools:
1.Personalised SMSs and emails could be sent to the more effective customers
regarding their vehicle servicing.
2.Third party acquisitions.
 3.Value passes.

Relationship Marketing:
Relational marketing for the more important customers of MFCSL can be done-
1. Annual loyalty programs
-Provide value added services to the loyal customers and customers with high
CLV at a lower price.

Privacy Issues:
1.Keep the data collected from the customers safe and private
2.Don’t share the data for monetary benefits.
3.Take the consent before taking any private information.
4.Don’t irritate the customers with excessive emails, SMSs and phone calls

Metrics:
Various metrics to measure the success of the customer acquisition and retention are
1. determining the conversion rate
2.acquisition cost
3.CLV
4. retention or churn rate
5. wallet share etc.

CUSTOMER ACQUISITION FUNNEL

Stage 1 – Lead Generation:
1.Here in this stage the customers made aware of the services of MFCSL services through
marketing campaigns (Tele marketing) and promotional operations like free car check-ups
etc.
2.Online marketing campaigns can also be used to make people aware about these
workshops and create interest
3.Through tele-marketing and field promotions also leads can be generated
4.Activities like providing value passes also helps in lead generation.
5.Third parties can also be roped in for lead generation.
6.Points of difference needs to be stated clearly.

Stage 2 – Lead Acquisition:

1.After the awareness stage comes the acquisition stage, here the consumers start showing
interest in the services provided by MFCSL.
2.value propositions and the benefits of the service are provided to the prospects
3. Any query by the prospect is answered promptly
4. Testimonials are provided from existing customers as those will have greater impact on
the prospects.

Stage 3 – Lead Conversion:

1.After awareness and acquisition stage comes the conversion stage when customer finally
thinks of purchasing your product and purchases it.
2.After conversion is successful, Not only provide personalised customization for the
customers and but also provide targeted services to earn their loyalty.

METRICS TO ESTIMATE THE EFFECTIVENESS OF CUSTOMER

ACQUISITION STRATEGY
 Customer Acquisition Cost: cost spent on more customers divided by the number of
customers acquired is customer acquisition cost.

Share of Wallet: The amount spent by an existing customer regularly on a particular

brand rather than buying from competing brands is called share of wallet.

Size of Wallet: The total amount of money a customer can spend on a certain product
category.
Customer Lifetime Value: is the total amount of money a customer is expected to
spend in your business, or on your products, during their lifetime.