A STUDY ON CUSTOMER’S SATISFACTION TOWARDS PRIDE OF

COWS

PRAFUL UMARKAR

MM1618540

Presentation Outline

• Customer Profile

• Company Profile

• Project Overview

• Research Problem, Objectives, Hypothesis

• Research Methodology

• Data Analysis and Interpretation

• Findings

• Recommendations

• Key Learnings and Limitations

• References

Customer Profile

Existing

Customers

Customers of

SB road Depot

Major areas are

Aundh, Baner, Pashan, Model Colony, ShivajiNagar, FC Road

Churn

Customers

Churn customers of Pune region

Company Profile

• Parag Milk Foods Limited was incorporated in 1992

• One of India’s largest private dairies, with processing capacity of 2million liters per day

• Plants at Manchar in Maharashtra near Pune and Palamner inAndhra Pradesh

• Largest cow farm in India as well as Asia’s largest cheese plant

• ISO 9000 and AGMARK certified company

• It has five brands under it including Avvataar whey protein

Company Profile cont.… • Pride of Cows is a sister concern of Gowardhan and a brand of Parag Milk

Foods Limited

• India’s most modern dairy firm with a production capacity of 25000 litersa day

• Equipped with the finest international technology for feeding, milking,and processing, conforming to international dairy practices

Product Profile

UNTOUCHED

UNADULTERATED FARM-TO-HOME

PURE

Project Overview The task was to create awareness for Pride of Cows’ milk for SB

road depot, Pune

The responsibilities were to visit existing customers, to conductpromotional activities, to take follow up of web calling and toknow the reasons affecting customer churn

Data was collected from the existing customers of SB road depotand from churn customers of Pune region

I have taken satisfaction topic for research purpose

I have added 25 new customers

Research Problem

PROBLEM STATEMENT(S)

Customers were not happy with the services provided by Pride of Cows

Customers were switching to other brands over Pride of Cows

Objectives of the Study

To determine the

satisfaction index of

customers in relation

with product and

services provided by

Pride of Cows

To identify factors which

affect the customer’s

buying decision for

Pride of Cows

To identify factors

affecting customer churn

Primary Objective Secondary Objectives

Hypothesis

Ho: Factors affecting the brand choice do not differ in magnitude of importance.

H1: Factors affecting the brand choice differ in magnitude of importance.

Ho: There is no significant association between satisfaction and recommendation

H1: There is a significant association between satisfaction & recommendation.

Research Methodology

Research Design: Descriptive and Exploratory Research

Primary Data Sources: Survey, Personal Interview, Telephonic Interview

Secondary Data Sources: Official website, research and market articles

Research Instrument: Structured Questionnaire

Sampling Method: Convenience Sampling

Sample Size: 119 (existing customers) ; 100 ( churn customers)

Area : SB road depot Pune.

KANO MODEL

Data Analysis and Interpretation

Factors nExtremely Satisfied

Satisfied Neutral DissatisfiedExtremely

DissatisfiedTotal

Quality of Product 119 83% 15% 0% 2% 0% 100%

Ease of Packaging 119 78% 15% 2% 5% 0% 100%

Delivery(Time and Mode)

119 82% 12% 0% 6% 0% 100%

Responsiveness 119 82% 15% 3% 0% 0% 100%

Customer Service 119 82% 16% 0% 2% 0% 100%

Payment Facilities 119 76% 18% 0% 6% 0% 100%

Interpretationa. Respondents are extremely satisfied with the Quality of the

Product.b. Respondents are dissatisfied with the Ease of packaging.c. Respondents are dissatisfied with the delivery.

PERCENTAGE WISE SATISFACTION OF CUSTOMERS

CUSTOMER SATISFACTION INDEX

Interpretation1. Respondents are most satisfied with the Quality of the product

with mean score of 38.202. Respondents are dissatisfied with the Payment Facility with

mean score of 36.66

38.20

3737.33

38.0637.86

36.66

35.5

36

36.5

37

37.5

38

38.5

We

igh

ted

Sco

re

Parameters

Customer Satisfaction Index

Quality of the Product

Ease of use (Packaging)

Delivey (Time and Mode)

Responsiveness

Customer Service

Payment Facility

CUSTOMER SATISFACTION SCORE

Interpretation

Existing customers are very much satisfied with the Pride of Cows.

Customer satisfaction score = No. of Happy Customers

Total no of customers

CSAT Score = (Extremely satisfied customers + Satisfied Customers)

(No. of customers (total respondents)

CSAT Score = (66+44)/(119) = 0.9243

LOYALTY LADDER

Advocate – Tells others about you

Client – Feels Belonging

Customer – Bought Again

Prospect – Supplied Details

Suspect – Fits your market

NET PROMOTER SCORE

(Net promoter score in %)2017

Total number of customers who answers to question 119

Total Number of promoters 67

Total Number of detractors 9

Net promoter score 48.7

NPS = (TNP-TND)/ (TNC)Net Promoter Score = (67-9)/ (119) = .487, 48.7%

Interpretation

Positive NPS (.487) means healthier business. There are 67advocates who will talk positive about Pride of Cows, 9 detractors can be make happy by educating them and providing best of the services.

RELATIONSHIP BETWEEN SATISFACTION AND RECOMMENDATION

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 15.803a 6 .015

Likelihood Ratio 16.167 6 .013

Linear-by-Linear Association

2.835 1 .092

N of Valid Cases 119

InterpretationThis means there is a significant association between satisfaction and recommendation.This leads me to conclude that Satisfaction plays vital role in recommendation of Pride of Cows.

Ho: There is no significant association between satisfaction and recommendationH1: There is a significant association between satisfaction and recommendation.

Level of significance α = .05From the Chi square test output table,P = .015, which is less than α = 0.05We reject the null hypothesis

MOST INFLUENCING FACTOR FOR CHOOSING PRIDE OF COWS

Table no. 9 Ranks

Mean Rank

Freshness 2.39

Taste 2.86

Quality 3.00

Recommendation 1.74

Interpretation

From the Friedman test rank table, it can be concluded thatQuality is the most effective factor responsible for the brand choice with the mean rank of 3.00., followed by taste with mean rank of 2.86.

Table no. 8 Test Statisticsa

N 119

Chi-square 104.319

Df 3

Asymp. Sig. .000

a. Friedman Test

Ho: Factors affecting the brand choice do not differ in magnitude of importance.H1: Factors affecting the brand choice differ in magnitude of importance.

MOST INFLUENCING FACTOR FOR CHOOSING PRIDE OF COWS

FactorsLeast

Important

Less

ImportantNeutral Important

Most

Important

Weighted

Total

Weighted

Score

Freshness 0 0 0 47 36 368 24.5333333

Taste 0 0 0 24 59 391 26.0666667

Quality 1 0 0 18 64 392 26.1333333

Recommen

dation43 6 2 8 24 213 14.2

Interpretation

Quality is the most influencing factor (with mean score of 26.13) for customers to choose Pride of Cows’ milk, customers give least important to recommendation as mean score is 14.2

Weighted average table

WHY DO CUSTOMERS CHURN ?

Reasons for

customer churn

Poor onboarding experience

Ineffective customer

service

Weak relationships

Ignoring data

FACTORS AFFECTING CUSTOMER CHURN

Factors

No. of

churn

Customers

Rise in Price 40

Type of Milk 12

Requirement is

less6

Relocation 25

Delivery 2

Not suitable 3

Not interested 7

Taste 1

Payment 2

Others 2

0

20

40

Ris

e in

Pri

ce

Typ

e o

f M

ilk

Re

qu

irem

ent

is le

ss

Rel

oca

tio

n

Del

iver

y is

sue

No

t s

uit

able

No

t in

tere

sted

Tast

e is

sue

Pay

men

t is

sue

Oth

ers

40

126

25

2 37

1 2 2

No

. of

cust

om

ers

Factors

Factors affecting customer ChurnRise in Price

Type of Milk

Requirement is lessRelocation

DeliveryissueNot suitable

NotinterestedTaste issue

Interpretation

Rise in Price is a major factor which influenced 40 existing customer to switch to other brands, customers can be retained by understanding their needs and providing them best of the services.

Name of the

Milk CompanyNo. of users

Provilac 52

Woohoo 15

Urban Farm 22

MOMs 3

Others 8

0

10

20

30

40

50

60 52

1522

38

No

. of

Use

rs

Milk Brands

Switched Brands

Provilac

Woohoo

Urban Farm

MOMs

Others

Interpretation

Provilac is the most preferred milk brand by churn customers, because it is doing aggressive Marketing and is available in less price compared to Pride of Cows and with different flavors as well.

BRANDS PREFFERED OVER PRIDE OF COWS

Growth rate vs. churn rate

GROWTH RATE=

Present Value – Past Value

Past Value

= 4650-41004650

= 11.82%

CHURN RATE=

Lost CustomersNo. of Customers Initially

= 1704110

= 4.13%

Source – Internal data base of Pride of Cows

How to win back churned customers

Listen to your customers Use the feedback received Offer various options Know the reason customer left Avoid delayed responses Offer multi channel customer

support

Findings

a) 83% of the customers are extremely satisfied with the Quality of the Product

b) Though 78% of the customers think that the packaging of the bottle is very convenient, 5% of the respondents are dissatisfied with the PET bottle

c) Prompt delivery is a POD of Pride of Cows, however, 6% of them are dissatisfied with the same, because of some delivery issues.

d) 82% respondents are extremely satisfied with the Customer service aspect of the Pride of Cows

e) 6% of the customers have issues regarding Payment facility, extra billing amounts and ineffective Mobile app of Pride of Cows

f) There are 67 brand evangelists of Pride of Cows and most of the satisfied customers recommend others to use Pride of Cows

g) Quality is the most important influencing factor to choose Pride of Cows.

h) 40% of churn customers have left purchasing Pride of Cows because of the rise in Price

i) Provilac is the next most preferred Milk brand over Pride of Cows.

Findings cont..

Recommendations1. Proper invigilation should be done to make prompt delivery

2. Company should aware customers about the benefits of PET bottles

3. Company should measure customer satisfaction on a regular basis

4. The issues regarding payment and billing can be resolved by modifyingand redeveloping their existing mobile app as well as ensuring astandardized billing method

5. The explanation given to the customers regarding the increasein price of the product could be more logical and alsoprovide a greater sense of value to the customers.

Suggestions accepted and Implemented

o Along with the promotional activities we should organize

drawing competition for the children of societies to lure their

parents

o We should make a documentary describing the nutritional

benefits of consuming Pride of Cows.

o Print

Key Learnings• Customer relationship management

• Information about milk industry

• Team Management/How to work in a team

• Sales Pitching / How to close a sale

• Organizing promotional activities

Limitations 1. Study was limited to SB road, Pune.

2. Time constraint of 45 days.

3. Sample Size was small as respondents were not easily approachable.

4. Permission issue for doing promotional activity.

Future scope of study 1. As the survey was carried out only for SB road Depot Pune region, similar research

can be carried out in other cities as well.

2. Data was collected from limited respondents; similar study can be done for large number of respondents.

3. Further detailed study can be carried out for churn customers.

References

•http://www.prideofcows.com

•http://www.aavinmilk.com/dairyprofile.html

•http://www.prideofcows.com/news/

•http://www.milkproduction.com/Library/Editorial-articles/Milk-quality-in

•http://www.indianmirror.com/indian-industries/dairy.html

Work done by me

No. of samples sent 108

No. of references 60

No. of orders 25

Thank You