1.

1 INTRODUCTION OF THE STUDY

SM Computers is a one-stop shop for all branded computers. We are located in

the center of Chennai, on the Tamilnadu. Their location is a major asset, as it is

accessible to both the largest concentration of the local community. It will offer a wide

selection of latest-technology computer hardware, custom-built computer systems,

computer service and computer rentals by the hour, and networking services. SM

computer dedicated to providing consistently high client satisfaction by rendering

excellent service, carrying items that are not locally available, and furnishing a warm,

pleasant atmosphere at a competitive price. Their work environment will be one of

respect for clients and community.

The timing is right for starting this new venture. Presently, there is only one other

computer store in these districts that handles IBM-compatible computers, and that store

focuses primarily on computer service, not hardware sales. It will offer solutions to the

community not provided by any of our competitors. With over 8 years of experience in

the computer industry, information industry, management and retail, they have the skills

necessary to make this venture extremely successful and profitable.

1
1.2 PROBLEM IDENTIFIED

SM Computers will revolve around the need to provide quality products and

services to our various target customers. This shall be undertaken through the

establishment of a professional team and the provision of quality, custom-designed

services, catering to the client's particular needs.

SMC intend to attain the following:

1. Develop a follow-up strategy to gauge performance with all our clients.

2. To continuously formalize and measure cross-functional working

communication so as to ensure that the various departments work harmoniously

towards attainment of company objectives.

3. To instill a culture of continuous improvement in beating standards of

customer satisfaction and efficiency.

4. We are fully committed to supporting growth and development in the

economy.

2
1.3 SCOPE FOR THE STUDY

The keys to success in our business are:

• Superior Customer Service: provide reliable, high-quality service and products,

and an expedient turn-around time on repairs.

• Environment: provide a clean, friendly, and comfortable environment conducive

to giving professional trusting service.

• Convenience: offering clients a wide selection of computer products and services

in one environment; including custom-built computers, computer diagnosis and

repair, networking, and in-store computer stations where clients can buy time to

browse the Internet, check e-mail, and download their digital photos from their

camera memory cards onto discs.

• Location: provide an easily accessible location for customer convenience.

• Reputation: credibility, integrity, and 100% dedication from 13+ years of

experience in the computer industry.

3
1.4 OBJECTIVES OF THE STUDY

The key Objectives will include the following:

1. Excellence in fulfilling the promise: completely confidential, reliable,

trustworthy expertise, and service(s) through the provision of an uncompromising

service. This dictates that we have the latest technology, hardware, software, and

well-trained personnel so as to deliver this promise.

2. Timed response to clients' orders: we cannot afford to delay our clients for

whatever reason, as this will have a negative bearing on our image, reputation,

and future business. We need to be continually communicating with the client,

ensuring we provide needs-based solutions.

3. Skill and depth of knowledge: Considering the nature of our services and

their relative infancy on the market, the skill and depth of knowledge of our

personnel is of utmost importance in determining the provision of the service(s) to

the end-users.

4
1.5 LIMITATION OF THE STUDY

Every effort and care has been taken to overcome the limitations and to make the study

useful.

1. Human behavior is too complex to determine. So the information disclosed by

them may not be very accurate.

2. The study does not include much of financial aspects of SM Computers as it

would lead to higher volume of study.

3. The size of sample survey was 50 customers.

4. It might be possible that the answers given by the respondents are full of biasness.

5. The sales and service coordinator of the company could not give much of his time

and refuse to provide sufficient data

5
 CHAPTER – 2
COMPANY PROFILE
SM COMPUTERS PVT LTD, CHENNAI

Company Name SM Computers Private Limited

Profile Service Provider For Tally, Dealers For Intel, Lenovo, HP & Acer,
E-Scan. Specialist in all cables and accessories for telecoms,
data, video, instrumentation & UPS.
Address No333, Kodambakkam, (Opposite To Government High School),
Arcot Road, Chennai, Tamil nadu 600024
Telephone +91 44 23727772
Category Sales and Service Provider
Products/Services Computer hardware & peripherals
Internet
Software
Web publishing
Consulting
Employees 1 – 10
E-Mail smcomp@gmail.com

SM Computers was incorporated in the year 2004 by Mr. S. Manikandan who

started the company activities as a dealer for electrical products and established
themselves as cable stockiest. His perseverance against all odds and onslaughts of time
and circumstance has brought him rich dividends. SM Computers has added new

6
dimensions and spirit to the organization with his single minded obsession to take SM
Computers to the top. Both they have vigorously and industriously explored an enviable
niche for SM Computers in the world of cable industry.

With its head office in the heart of Chennai, a full fledged company well equipped
with all modern facilities and energetic technical & commercial staff with sales network
in Chennai, Bangalore and Hyderabad. We have built the operational infrastructure
necessary to sustain that growth with a planned balance of products, pricing, and people.

SM Computers goal is to provide the highest quality computer, networking, and

mainframe solutions available at competitive rates, and to offer top-notch support for our
customers.

Our PC specialists can help you assess your needs, and assist you in purchasing,
upgrading, installing and networking your personal computers. Metro sells brand name
components and peripherals such as Intel® processors and motherboards, and software
from Microsoft® and Novell®.

SM Computers prides itself in providing the latest top brand equipment to our
customers. From the latest desktop and notebooks PCs through to projectors and
plasmas, Hire Intelligence has one of the largest ranges of leading IT and audio visual
equipment available for short term hire. We can deliver, install, configure and set up your
equipment.

Our marketing strategy will be based mainly on ensuring that clients know what
need the service(s) is able to fulfill, and making the right service and information
available to the right target client.

We intend to implement a market penetration strategy that will ensure that our
services are well known and respected in our respective industry. Our strategy will
convey a sense of quality and satisfaction in every picture, every promotion, and every

7
publication. Our promotional strategy will involve traditional advertising, Internet
marketing, personal selling, public relations, and direct marketing, details of which are
provided in the marketing section of this plan.

Why Choose SM Computers Computer Services?

Our Staff
While being experienced and certified are important, we also focus on finding
ways to improve our services to you. Your feedback is one of the most valuable tools we
could ever have to achieve this.

Our Service
We respond quickly!, Whether it is turning up on time for onsite service,
purchasing a product from us or having a website created, we know your time is valuable.

Our Products
SM Computers Computer Services stocks a comprehensive range of computer
hardware and software, and if we don't have what you need in stock we will get it in for
you. We are constantly working to keep our products competitive in price, so there is
always products to suit your budget.

Independent Advice
Advice you receive from SM Computers Computer Services is focused on your
computer needs and to save you time and money.

It is important to recognize that make our intangible resources, such as our ability
to relate to customers regarding their needs and wants, management style, corporate
culture and commitment. These elements will differentiate us from our competitors and
contribute towards the development of a sustainable competitive advantage.

8
"The company is dedicated to leveraging emerging technologies to provide the highest
level of quality products and services, customer service, and security."

SM Computers will strive to maintain the latest hardware and software

capabilities so as to ensure we are continuously at the forefront in our market arena. The
one certainty in our industry is that technology will continue to evolve and develop,
changing what we market, as well as how we market it. Our aim is to be aware of the
implications of this new technology, and utilize it in our existing framework where
possible. Complete presentation facilities for preparation and delivery of multimedia
presentations on Macintosh or Windows machines, in formats that include on-disk
presentation or video presentation are also possibilities.

OUR MISSON

SM Computers is committed to the fair and ethical treatment of employees and

stakeholders. This shall be undertaken through implementation of the following company
values:

• We intend to be a responsible corporate citizen, fulfilling our obligations as an

integral member of society. Our business decisions will give appropriate weight and
consideration to social and environmental impacts.
• We intend to provide products and services of uncompromising quality.
• We intend to seek mutually beneficial and enduring relationships in all the
commitments that we make, ensuring that they are straightforward and honest. Our
communication will be open and accurate, both internally and externally.

Through implementation of the company values, we believe that we will be able to

attain our goals and objectives for the benefit of all concerned, in particular, the
communities in which we will operate.

9
Smart business people need to find quality vendors of reliable hardware, software,
service, and support. They need to use these quality vendors as they use their other
professional service suppliers: as trusted allies.

SM Computers provides both computer products and services to make them

useful to small business. We are especially focused on providing network systems and
services to small and medium business. The systems include both PC-based LAN
systems and minicomputer server-based systems. Our services include design and
installation of network systems, training, and support.

Product and Service Description

In personal computers, we support three main lines:

The Super Home is our smallest and least expensive line, initially positioned by its
manufacturer as a home computer. We use it mainly as a cheap workstation for small
business installations.

The Power User is our main up-scale line. It is our most important system for high-end
home and small business main workstations.

The Business Special is an intermediate system, used to fill the gap in the positioning. In
peripherals, accessories and other hardware, we carry a complete line of necessary items
from cables to forms to mousepads.

In service and support, we offer a range of walk-in or depot service, maintenance

contracts and on-site guarantees. We have not had much success selling service contracts.

Competitive Comparison

The only way we can hope to differentiate well is to define the vision of the company to
be an information technology ally to our clients. We will not be able to compete in any
effective way with the chains using boxes or products as appliances. We need to offer a
real alliance.

10
 The benefits we sell include many intangibles: confidence, reliability, knowing
that somebody will be there to answer questions and help at the important times.

These are complex products, products that require serious knowledge and
experience to use, and our competitors sell only the products themselves.

Unfortunately, we cannot sell the products at a higher price just because we offer
services; the market has shown that it will not support that concept. We have to also sell
the service and charge for it separately.

Sales Literature

Copies of our brochure and advertisements are attached as appendices. Of course,

one of our first tasks will be to change the message of our literature to make sure we are
selling the company, rather than the product.

SM Computers will start with some basic self-generated literature to establish initial
positioning:

• Logo and theme - A national catalog sales paper goods company has a
wonderful line of blank papers with a computer theme that will serve as the
"look" for SM. A graphic artist friend of the owner has already commenced
work on a matching logo.
• Stationery - The theme paper is available in various formats for use as
company stationery.
• Brochure - Likewise, pre-printed paper is available, along with software
templates for generating brochures
• Web Presence - Eventually a website will be developed as an "electronic
brochure" as well as a resource site for the owner's established client base.
• Response Templates - As common problems/solutions are encountered
and solved, a set of standardized templates for initial responses will be
developed. This will shorten response time and eliminate confusion in providing
quick solutions to routine issues.

11
Fulfillment

Our costs are part of the margin squeeze. As competition on price increases, the
squeeze between manufacturers' price into channels and end-users' ultimate buying price
continues.

With the hardware lines, our margins are declining steadily. We generally buy at
our margins are thus being squeezed from the 25% of five years ago to more like 13-15%
at present. In the main-line peripherals a similar trend shows, with prices for printers and
monitors declining steadily. We are also starting to see that same trend with software.

Computer Industry customers include Samsung, Government of Singapore, and AMAL

insurance Jurong Port in Singapore and Malaysian’s BSN commercial bank, SIA, DBS
bank, Maybank life assurance charted semiconductors.

The menu of Industry global services broadly covers IT consulting and

professional services in the area of vertical applications, technology integration, ERP
implementation and software development. This also includes a complete portfolio of
systems and network services for development. This also includes a complete portfolio of
systems and network services for Facilities Management, Helpdesks, Systems Supports
and network and Internet Implementation.

In order to hold costs down as much as possible, we concentrate our purchasing

with Hauser, which offers 30-day net terms and overnight shipping from the warehouse
in Dayton. We need to concentrate on making sure our volume gives us negotiating
strength. In accessories and add-ons we can still get decent margins, 25% to 40%.

The fulfillment of services for SM is provided by the owner. The ultimate

deliverable is the owner's expertise and problem solving ability, coupled with an open
mind and ease of communication that will result in the customer's complete confidence in
immediate and lasting results.

12
Technology

We have for years supported both Windows and Macintosh technology for CPUs,
although we've switched vendors many times for the Windows (and previously DOS)
lines. We are also supporting Novell, Banyon, and Microsoft networking, Xbase database
software, and Claris application products.

Technology is, of course, vital to the success of SM Computers. It is imperative

that the owner stay up-to-date on the latest technological developments in the computer
industry. In addition, it will be important to devote a reasonable portion of each year's
revenues toward upgrading the equipment and software used by SM in its normal
operations.

Future Products and Services

We must remain on top of the new technologies, because this is our bread and
butter. For networking, we need to provide better knowledge of cross platform
technologies. Also, we are under pressure to improve our understanding of direct-connect
internet and related communications.

Finally, although we have a good command of desktop publishing, we are

concerned about getting better at the integration of technologies that creates fax, copier,
printer, and voice mail as part of the computer system.

13
 CHAPTER 3

INDUSTRY PROFILE

Computer Industry

With sound macroeconomic condition and buoyant buying sentiment in the

market, PC sales touched 6.5 million units during 2006-07. The high growth in PC sales
is attributed to increased consumption by Industry verticals such as Telecom, Banking
and Financial Services, Manufacturing, Education, Retail and BPO/IT-enabled services
as well as major e- Governance initiatives of the Central and State Governments.
Significant consumption in the small and medium enterprises and increased PC purchase
in smaller towns and cities was witnessed during the year. It is expected that increased
Government focus on pan-India deployment of broadband at one of the lowest costs in
the world will soon lead to accelerated PC consumption in the home market.

The growing domestic IT market has now given impetus to manufacturing in

India. The year witnessed not only capacity expansion by the existing players, but also
newer investments in hardware manufacturing. India is also high on the agenda of
electronics manufacturing services companies.

This is now a matured industry sector in the country at least as far as various
application segments is concerned. State-of-art and reliable SCADA, PLC/Data
Acquisition systems are being applied across various sections of the process industry.
Latest AC drive systems from smaller to very high power levels also find application in
large engineering industries like steel plants and/or metal industries.

World class UPS systems are being manufactured in the country to cater to the
need of the emerging digital economy. However, it appears there is really no
manufacturing base in the country for the whole range of the latest test and measuring
instruments which are invariably procured from outside. A good number of Indian

14
companies in the control and instrumentation sector are able to acquire orders for export
systems through international competitive bidding.
However, the creation of knowledge base in the country through industrial R&D in this
critical sector has not been improving as desired. There is still lack of needed R&D
activities by the industry looking at the global market.
On the part of Department of Information Technology some of the latest
technology development and applications in this area include Intelligent SCADA
Systems for monitoring and control of Mini Hydel plants, Advanced Traffic Control
System for urban transportation, Intelligent Power Controllers for improvement of quality
of electric power, etc. These systems have been successfully developed and applied in
real field conditions.

Computers Communication & Broadcast Equipment

One of the CPT manufacturers successfully developed a prototype of the 42

Plasma Display Panel. This marked a major achievement of a milestone in the area of
developing from green field a Technology development initiative in a Hi Tech area. The
focus of development was in optimizing the Plasma Display Cell design to achieve the
desired parameters of Contrast and Brightness, achieving high speed response times and
parallely designing the Scan and sustain driver boards to match the Panel parameters.

A fully functional video Controller was also designed and developed to match the
Logic Circuits of the PDP Panel. In the year 2006, the company plans to begin selling
commercially the PDP Panels developed completely inhouse and the focus there on will
be to create low cost products through Technological breakthroughs. The color glass
parts manufacturer implemented major expansion of its capacity to meet increased local
requirement due to substantial growth in CPT production. The unit also started
manufacture of glass parts for pure flat tubes as the demand for such tubes increased due
to one more unit launching production during the year. Both the existing manufacturers
of B/W glass parts continued the production of colour funnels in their existing lines.

15
 They were also planning to make large investment to set up manufacturing
facilities for colour panels in near future. A number of existing units imported capital
goods under various schemes for expansion of their capacities in PCBs, connectors, cable
assemblies, colour picture tubes, compact disc, glass parts for colour picture tubes, etc.
Corporate Catalyst India A report on Indian Electronics Industry

The serviceable market for professional grade components such as PCBs,

semiconductor devices, connectors, wound components, antennas, etc., is likely to go up
due to launch of manufacture of mobile handsets in the country.

Evolution of Marketing

At the beginning of the century, social life was mostly local. It was followed by a
period in which commodities were produced on a mass scale. Consumer Marketing
operated on mass marketing principles and business primarily concerned itself with how
to build the best sales force. At the end of the century, there is an emerging global
culture. The major driver of these changes is technology.

Technological change has moved steadily back focusing on the individual. These
changes shape the possibility and conduct of business. Marketing is especially tied to
communication and transportation revolution. As the tools and reach of marketing
increase, the job and responsibilities of marketers have evolved with them.

Kotler formalized this evolution with his book "Marketing Management." His key
stages are production, sales and brand management. Each of these is strongly motivated
by technological opportunities, which permit new methods and new opportunities. A
fourth stage, a focus on the individual customer, is also important. As the new technology
of the Internet develops, it reinforces the new marketing emphasis - which in many ways
is a return to business at the turn of the century.

In today’s technology driven world, a new fast paced digital economy is

emerging. In the near future, it wouldn’t be surprising to see that there are companies that
exist only inside computer networks. Most business transactions will be made
electronically, directly from the producer to the consumer, bypassing the supply chain. In
16
the digital marketing environment, the consumer becomes an integral player in the
development of the product. In fact, a consumer might build the product himself from a
wide array of parts provided by the company. It is e-commerce that is changing the way
products and services are conceived, manufactured, promoted, priced, distributed and
sold. The reason being that it is much cheaper; it allows vast coverage and helps in
serving the customer better.

IT Hardware and Office Automation Market

IT hardware, primarily the desktop, has been driving for the new economy.
Starting from wealth creation to improving quality of life for all sections of society, it has
been one of the major contributors to the Indian electronics hardware. The computer
segment is one of the fastest growing segments of the electronics industry. The percent
share of this segment in the total electronics hardware industry has increased from 11
percent in 2002-2003 to 18 percent in 2004-2005.

The increasing demand for computers in emerging sectors such as On-line

Transaction Processing (OLTP) and SOHO is expected to drive the growth of the
segment and the industry. The national broadband policy has forecasted the PC
penetration to increase from 14 in 2005 to 69 per 1000 persons by 2010 in order to
achieve the broadband target of 20 million subscribers by 2010.

The Total Market (TM) for semiconductors in India in 2005 is estimated at $2.82
billion and the IT hardware and office automation market accounts for about 27.6 percent
of the TM. The Total Available Market (TAM) for semiconductors in India was valued at
$1.14 billion in 2005 and the IT hardware and office automation market accounts for 51.7
percent of the TAM. The higher manufacturing activity in the desktops industry reflects
in the higher share of the TAM for the IT hardware and office automation market.

17
 The study has covered the major products in the IT hardware and office
automation namely desktops, monitors, Desktops, printers, keyboards and photocopiers.
Desktops account for the highest share in the IT hardware; and OA segment for a
monopolistic share of about 86 percent in TM in 2004 and would continue to lead the
segment even by 2010, Monitors comprise the second largest segment followed by
Desktops, photocopiers, printers and keyboards. Microprocessors account for the largest
share in the semiconductor TAM in IT and OA segment followed by memory and ASICs.
The share of the microprocessors and memory would continue to increase compared to
the other semiconductor types due to the growth in desktop segment.

The semiconductor market for IT hardware and OA segment has benefited from
the robust growth in the desktop industry. The IT hardware and OA segment is the
second largest segment, next to communications, which takes the first place in the overall
TM considering all the application segments. In TAM, IT hardware and OA segment is
the leader as the consumption of processors and memory, which are high value
semiconductors and are purchased in India irrespective of the place of manufacturing.

The low desktop/ PC penetration rate provides ample opportunities for the
desktop sales and is expected to propel IT hardware and OA segment to be one of the
major segments in the semiconductor market during the forecast period.

18
 Figure 1:IT hardware and office automation market: TM and TAM revenue
forecasts
(India), 2003–2015

IT Industry in India

• IT Industry in India comprises hardware, software, and ITES (Information

Technology Enabled Services). As per McKinsey-NASSCOM report, India's
annual revenue from the IT industry for 2008 has been projected at US $ 87

19
 billion. This includes IT services, software products and services, IT enabled
services and e-businesses.

• The distribution of US $ 87 billion has been worked out as:

o IT Services generating a revenue of US $ 38.5 billion
o Software products and services contributing with a revenue of US $ 19.5
billion
o IT enabled services (ITES) generating a revenue of US $ 19 billion
o E-business earning a revenue of US $ 10 billion
• Other vital observations of the NASSCOM-McKinsey report about Indian IT
industry are:
• Of the total Indian exports, IT will constitute 35%
• FDI (foreign direct investment) of almost US $ 5 billion will be attracted by the
IT industry
• Software and services will account for 7.5 % of GDP growth
• IT shares capitalization value will be almost US $ 225 billion
• IT sector will create 2.2 million jobs within 2008.

IT hardware industry in India

HCL Infosystems Ltd, Wipro Ltd., Zenith Computers, PCS Industries Ltd., Acer,
TVS Electronics, D-link Industries, Microtek Devices are some of the renowned Indian
computer hardware and peripheral device manufacturers in India. IBM, Hewlett Packard,
Dell, Epson, Canon are multinational corporations in computer hardware and peripherals
operating in India.

20
IT Software Industry in India

IT software industry has witnessed phenomenal growth in the last decade. During
the decade 1990-2000 the software industry in India grew from US $ 150 million to US $
5.7 billion. Satyam, Infosys, Wipro and TCS are some of the leading Indian software IT
companies.

21
 Meaning of sales: A contract involving transfer of possession and ownership of goods
or property, or the entitlement to a service, in exchange for money or value is termed as
sales. A sale is the pinnacle activity involved in selling products or services in return for
money or other compensation. It is an act of completion of a commercial activity.

A sale is completed by the seller or the owner of the goods. It starts with consent
(or agreement) to an acquisition or appropriation or request followed by the passing of
title (property or ownership) in the item and the application and due settlement of a price,
the douche of or any claim upon the item.

The purchaser, though a party to the sale does not execute the sale, only the seller
does that. To be precise the sale completes prior to the payment and gives rise to the
obligation of payment. If the seller completes the first two above stages (consent and
passing ownership) of the sale prior to settlement of the price, the sale is still valid and
gives rise to an obligation to pay.

Academically, selling is thought of as a part of marketing, however, the two

disciplines are completely different. A sale often forms a separate grouping n a corporate
structure, employing separate specialist operatives known as salespeople. Selling is
considered by many to be a sort of persuading "art".

Contrary to popular belief, the methodological approach of selling refers to a

systematic process of repetitive and measurable milestones, by which a salesperson
relates his or her offering of a product or service in return enabling the buyer to achieve
their goal in an economic way.

While the sales process refers to a systematic process of repetitive and measurable
milestones, the definition of the selling is somewhat ambiguous due to the close nature of
advertising, promotion, public relations, and direct marketing

22
 Sales departments often form a separate grouping in a corporate structure,
employing individuals who specialize in sale specific roles.

Selling involves sales which are the pinnacle act of completed of a purchasing
activity. Selling also involves salespeople who are the primary agents of facilitating
sales.

Selling is the profession-wide term, much like marketing defines a profession.

Recently, attempts have been made to clearly understand who is in the sales profession,
and who is not. There are many articles looking at marketing, advertising, promotions,
and even public relations as ways to create a unique transaction.

Many believe that the focus of selling is on the human agents involved in the
exchange between buyer and seller. Effective selling also requires a systems approach, at
minimum involving roles that sell, enable selling, and develop sales capabilities. Selling
also involves salespeople who possess specific set of sales skills and knowledge are
required to facilitate the exchange of value between buyers and sellers that is unique from
marketing, advertising ,etc.

From the company point of view, there are three main objectives of sales
management: sales volume, contribution to profit, and continuing growth. Top
management has the final responsibility, because it is accountable for success or failure
of the entire enterprise.

In the process, objectives are translated into more specific goals – they are broken
down and restarted as definite goals that a company has a reasonable chance of reaching.
Once these goals are finalized, it is up to sales force that play critical role in
implementing the selling plans.

23
Essential elements in a valid sale:
(1) Competence of both the buyer and seller to enter into a contract
(2) Mutual agreement on the terms of exchange
(3) A thing capable of being transferred
(4) A consideration in money (or its equivalent) paid or promised.

When both the seller and the buyer perform their respective duties by abiding the above 4
elements of a valid sale, one can say that sale is executed

Who is a seller?
One who sells or initiates contracts to sell goods; the one who transfers property as a
result of a sales contract.

Who is a buyer?

One who buys or agrees to make a purchase or one who has the capacity to finance his
demand and receives property in exchange for money or valuable consideration.

WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT (CRM)?

CRM is a term that is often referred to in marketing. However, there is no

complete agreement upon a single definition. This is because CRM can be considered
from a number of perspectives. In summary, the three perspectives are:

1. CRM from the Information Technology Perspective.

From the technology perspective, companies often buy into software that will help
to achieve their business goals. For many, CRM is far more than a new software package,
the renaming of traditional customer services, or an IT-based customer management
system to support sales people. However, IT is vital since it underpins CRM, and has the

24
payoffs associated with modern technology, such as speed, ease of use, power and
memory, and so on.

2. CRM from the Customer Life Cycle (CLC) Perspective.

The Customer Life Cycle (CLC) has obvious similarities with the Product Life
Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value
to the customer i.e. looks at the products of services that customers need throughout their
lives. It is marketing orientated rather than product orientated. Essentially, CLC is a
summary of the key stages in a customer's relationship with an organization.

3. CRM from the Business Strategy Perspective.

The Business Strategy perspective has most in common with many of the lessons
and topics contained on this website, and indeed within the field of marketing itself. The
diagram below shows the Marketing Teacher Model of CRM and Business Strategy. Our
model contains three key phases - customer acquisition, customer retention and customer
extension, and three contextual factors - marketing orientation, value creation and
innovative IT.
Customer Relationship Management is the establishment, development,
maintenance and optimization of long-term mutually valuable relationships between
consumers and organizations. The relationship delivers value to customers, and
profits to companies. The relationship is supported (but not driven) by cutting edge
IT. The business strategy is based upon the recruitment, retention and extension of
products, services, solutions or experiences to customers. This is the core of CRM.

ALL ABOUT BRANDING

The term brand means different things to the different roles of buyer and seller,
with buyers generally associating brand with a product or service, and merchants
associating brand with identity.
Brand can also identify the company behind the specific product -- that's not just
a biscuit, that's Britannia biscuit. This use of brand puts a "face" behind the name, so to

25
speak, even if the "face" is the result of advertising copy and television commercials.
This use of brand also says nothing of quality, just the buyer's exposure to the brand's PR
and media hype.
For the typical merchant, branding is a way of taking everything that is good
about the company -- positive shopping experience, professionalism, superior service,
product knowledge, whatever the company decides is important for a customer to believe
about the company -- and wrapping these characteristics into a package that can be
evoked by the brand as signifier.

Introduction to Branding

The American Marketing Association defines a brand as “A name, term, sign,

symbol or design or a combination of them, intended to identify the goods and services of
one seller or group and to differentiate them to those for competitors”.
A brand is thus a product or service that’s adds a Dimension that differentiates it
in some way from other products or services designed to satisfy the same need. These
differences may be functional, rational, or tangible- relate to product performance of the
brand.
Branding has been around for centuries as a means to distinguish the goods of one
producer to those of another. The earliest signs of branding can be traced to Europe
where the medieval guilds required that craftsmen put trademarks on their product to
protect themselves and producer against inferior quality substitutes. Also in fine arts
branding began with artists signing their works. Brands today play a number of important
roles that improve the consumer’s lives and enhance the financial value of firms.
Brands identify the source or maker of the product and allow consumers-either
individual or organizations- to assign responsibility to a particular manufacturer or
distributor. Consumers may evaluate the identical product differently depending how it is
branded.

26
 Consumers lean about the brand with its past experience and the marketing
program. As consumers lives becomes more complicated, time starved the ability of
brand to simplify decision making is invaluable. Brands also perform valuable functions
for the firm. First they simplify the product handling and tracing. Brands help to organize
inventory and accounting records.

The brand name can be protected registered trademarks. The intellectual property
rights ensure that the firm can safely invest in the brand and can reap the benefits over a
long period of time.
Brands can signal a certain level of quality so that satisfied buyers can easily
choose the product again. Brand loyalty provides predictability and security of demand
for the firm and creates barriers to entry that makes it difficult for other firms to enter the
market. This brand loyalty can translate into willingness to pay higher price.
In this sense branding can be seen as powerful means to secure a competitive
advantage. Brands represent enormously valuable pieces of legal property that can
influence consumer’s behavior. Strong brand results in better earnings and profit
performance for firms, which in turn, creates greater value for shareholders.
How do you “BRAND” a product? Although firms provide the impetus to brand
creation through marketing programs and other activities, ultimately a brand is something
that resides in the mind of the consumers. A brand is a perpetual identity that is rooted in
reality but reflects the perceptions and perhaps even the ultimate choice of the consumers.
Branding is endowing products and services with the power of brands.
To brand a product, it is necessary to teach the consumers “who” the product-by
giving a name. Branding involves creating mental structures and helping consumers
organize their knowledge about products and services in a way that clarifies their
decision making and in process provides value to the firm.

27
 Branding can be applied virtually anywhere a consumer has a choice. It is
possible to brand:

A physical good (Nestle soup, Pantene shampoo or Maruti Swift),

A service (Kingfisher Airlines, TATA AIG medical insurance),
A store (Big Bazaar, BATA stores),
A place (The state of Kerala, Pushkar Mela),
A person (Shahrukh Khan, Sachin Tendulkar),
An organization (UNICEF or BCCI),

Brand is the proprietary visual, emotional, rational, and cultural image that you
associate with the company or a product. When you think of Volvo, you think of safety.
When you think of Nike, you think of Michael Jordon or ‘Just Do It’. When you think of
IBM, you think of ‘Big Blue’. The fact that you remember the brand name and have
positive associations with that brand makes your product selection easier and enhances
the value and satisfaction you get from product.

28
 CHAPTER 4

RESEARCH METHODOLOGY OF THE STUDY

Research refers to a search for knowledge. It is a systematic method of collecting

and recording the facts in the form of numerical data relevant to the formulated problem
and arriving at certain conclusions over the problem based on collected data.

Thus formulation of the problem is the first and foremost step in the research
process followed by the collection, recording, tabulation and analysis and drawing the
conclusions. The problem formulation starts with defining the problem or number of
problems in the functional area.

To detect the functional area and locate the exact problem is most important part
of any research as the whole research is based on the problem.

According to Clifford Woody research comprises defining and redefining

problems, formulating hypothesis or suggested solutions: collecting, organizing and
evaluating data: making deductions and reaching conclusions.

Research can be defined as “the manipulation of things, concepts or symbols for

the purpose of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art”

In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research.

4.1 RESEARCH DESIGN OF THE STUDY:

Research Design is the conceptual structure within which the research is
conducted,. A research is the arrangement of conditions for the collection and analysis of
data in a manner that aims to combine the relevance to the research purpose with
economy in procedures. Research constitutes the blue print for the collection.
Measurement and analysis of data.

29
DRAFTING QUESTIONNAIRE

The questionnaire is considered as the most important thing in a survey operation.

Hence it should be carefully constructed. Structured questionnaire consist of only fixed
alternative questions. Such type of questionnaire is inexpensive to analysis and easy to
administer. All questions are closed ended.

S. No. Particulars Description

1. Project Title “STRATEGIES IMPLEMENTED
TOWARDS COMPUTER SALES .”
2. Sample Size 50
3. Sample Unit Shopkeeper, Housewife, Service men, etc.
4. Area Covered Kodambakkam, Chennai
5. Sampling Procedure Random Sampling
6. Research Design Exploratory
7. Data Collection Method Survey
8. Research Instrument Questionnaire
9. Type of Questionnaire Structured
10. Type of Questions Close Ended, Open Ended Questions
11. Method of Survey Census Survey
12. Type of Sampling Stratified Sampling

SAMPLING

It was divided into following parts:

30
Sampling universe

The entire respondents are the sampling universe for the research.

Sampling technique (Judgment)

Sample was taken on judgmental basis. The advantage of sampling are that it is much less
costly, quicker and analysis will become easier. Sample size taken was 100 employees.

4.2 DATA COLLECTION

The task of data collection begins after the research problem has been defined and
research design chalked out. While deciding the method of data collection to be used for
the study, the researcher should keep in mind two types of data viz. Primary and
secondary data.

Primary Data

The primary data are those, which are collected afresh and for the first time and
thus happen to be original in character. The primary data were collected through well-
designed and structured questionnaires based on the objectives.

Secondary Data:

The secondary data are those, which have already been collected by someone else
and passed through statistical process. The secondary data required of the research was
collected through various newspapers, and Internet etc.

Importance of research work:

31
  The purpose of this study is to examine the impacts of demographic Factors and
footwear benefits sought on consumer purchasing outcomes in the urban market.
 Research results show that age, household size, education, occupation and
income significantly affect amount of money spent, pairs of footwear purchased
and purchase plans, but not average price paid. Gender and residence of
respondent were not significantly related to purchasing outcomes.
 The study identified two groups of shoppers seeking significantly different
benefits in purchasing footwear products: the functional shoppers and the alpha
shoppers. As compared to the functional shoppers, alpha shoppers purchased
more pairs of footwear, paid higher price for footwear and spent larger HRK1
amount on footwear. The results are indicative for the segmentation strategy in
the footwear market.
 The research also helps footwear manufacturers and retailers to better target
their consumer segments

RESEARCH OBJECTIVE

The research study tends to follow and achieve specific objectives.

The objectives of this particular study are:-

• To study which branded sport shoes is mostly preferred by people as per their
choices.
• Comparison between various branded sport shoes.
• Find out factor influencing the people at the time of purchasing PC (Desktop)
QUALITY, DURABILITY, VARIETY, PRICE.

STRATEGY AND IMPLEMENTATION

32
 SM Computers intends to win and maintain customers by providing products and
services that add value, safety, and are supported by a well-trained professional team with
commercial expertise.

This is important to the successful implementation of our overall strategy and the
need to ensure that all divisions and functions in the organization are working
harmoniously towards attainment of the goals and objectives.

Our marketing strategy emphasizes focus. The target customers will include key
decision-makers in business, which often order or recommend on behalf of the whole
organization, the aim being to obtain an initial order and fully satisfy the customer from
then on.

• We intend to initially build image and awareness through consistency and

distinctiveness in our product and service provision.
• We intend to focus on delivering quality products and services that produce good
referrals, which can then generate revenue. We intend to have a heavy personal
selling component, supported by regular advertising we will always be active in our
personal relationships with clients and strategic allies, keeping abreast of their
needs and wants.
• We are focusing advertising on several key media.

We intend to achieve growth by creating a more enthusiastic customer culture than that of
our competitors. The strategy is to grow the business by nurturing customers,
differentiating the product/service offering through service and staff behavior.

Through the implementation of a fair, effective, and competitive remuneration

policy we intend to optimize our human resource output and advancement. We need the
right people in the right place at the right time if we are to ensure optimum growth. We
intend to develop our team so that our people can grow as the company grows--a
mutually beneficial relationship.

33
 Marketing Strategy

One core element of our marketing strategy will be that of differentiation from
our competitors. In terms of promotion, we intend to sell our company as a strategic ally,
not just our products. We intend to offer extremely reasonable prices in comparison to
competition, and we need to be able to sustain that. Market penetration through lower
prices shall be undertaken where need be, while premium pricing in the case of the upper-
end of the market.

Distribution Strategy

Service provision and consulting will be sold and purchased mainly on a word-of-
mouth basis, with relationships and previous experience being, by far, the most important
factor. In this regard we intend to provide a service that exceeds customer expectations so
as to ensure they refer us to potential clients through word-of-mouth. New business shall
be developed through industry associations, business associations, and, in some cases,
social associations, such as country clubs.

Marketing Programs

Advertising

In view of the fact that we are new on the market, we intend to undertake
extensive advertising of our name and products and services we offer. This is to instill
awareness and knowledge of our existence in the marketplace, which shall convert into
market share. We intend to advertise in business and IT magazines that are read by our
target market and will ensure we are adequately exposed on the market.

A constant lookout will be made of any special editions in these various

publications, which may provide an opportunity for us to advertise our services and
ourselves. Advertising will also be conducted through television, radio,
newspapers/magazines, and the Internet. Sponsoring a technology discussion/call-in talk
show is a possibility.

34
Personal Selling

Word of mouth is critical in this segment. We will have to make sure that once we
gain a customer, we never lose him/her. To help accomplish this, we must work to
establish and maintain relationships.

Personal selling will be a powerful form of promotion due to the fact that its
flexibility will enable us to match the customer's needs to specific attributes of our
services, as well as giving concise details of what we are able to offer.

Public Relations

Recognizing that we are relatively new on the market, there will be a need to
organize an event introducing ourselves onto the market. To this we will invite potential
customers, senior officials, possibly including a government minister and other
stakeholders, so as to penetrate the market. In collaboration with this we, also intend to
place news stories and features in magazines and newspapers to keep stakeholders
updated on the latest developments and to increase awareness.

Events

The number of IT companies on the market dictates that the organization needs to
promote itself through participation in trade shows and expositions. Not only will these
increase awareness of our products and services, but if a particular product or service
were to gain recognition, for example through being chosen No. 1 in innovativeness, the
organization will be able to take advantage of this in all its promotional campaigns,
adding leverage to its reputation and corporate image. An example of a trade show we
intend to participate at is BITEC. These expositions will also be a good opportunity for us
to network with various organizations and individuals.

Internet Marketing

The company will sell its services over the Internet as it is cost effective to reach a
large number of potential clients, regionally and internationally. We also realize that
customer/client research is needed before building an effective website, something which

35
is rarely done by existing companies, in order to find out how customers will want to
access information and journey through the site.

Sales Strategy

SM Computers will receive its revenue streams from a combination of licensing

agreements, sales commissions, monthly subscriptions, registration fees, network access
charges, service fees, transaction charges, training, promotional incentive programs, and
sales of hardware and software.

The derived value of SM Computers will come from the key partnerships
established and developed in order to deliver a product and service provision of
transactional – based activities, providing opportunity to build brand and loyalty, around
which relationship marketing will play a key role.

The annual sales projections are provided in a table below. It should be noted that
as we become established and known on the market we project sales to increase at a
faster rate than the initial year.

These figures are based on revenue from three main areas:

1. Computer Sales - this includes sales of all hardware components. We estimate a

5% annual increase in this revenue area from new customer acquisition. The sales
costs for computer hardware average 70% of the final sales prices when the
hardware is sold. Costs for wholesale computer hardware are expected to have a 2%
annual increase.

2. Computer Service - revenue generated strictly from labor fees, so except for
payroll, there is no sales cost. We estimate a 10% annual increase in this revenue
area from repeat business as a result of customer loyalty.

36
3. Computer Rental Stations - revenue generated from customers renting the
computer stations by the hour. We estimate a 3% annual increase to reflect the
projected increase. This revenue is all profit since it requires no cost for
inventory and it is basically self-service, so requires no labor hours.

Figure 2: Sales by Year

37
 (in Rs.)
SALES BY YEAR

2,800,000

2,400,000
2,000,000
Product / Services
1,600,000
1,200,000

800,000
400,000
YEAR 1 YEAR 2 YEAR 3

Table 1:
SALES FORECAST
Year 1 Year 2 Year 3
Sales
Products/Services 1,422,225 2,528,400 3,034,080

Total Sales 1,422,225 2,528,400 3,034,080

Direct Cost of Sales Year 1 Year 2 Year 3

Products/Services 711,114 1,264,200 1,517,040

38
Subtotal Direct Cost of Sales 711,114 1,264,200 1,517,040
Table 2:

SALES FORECAST
Year 1 Year 2 Year 3

Sales

Computer Sales 156,500 164,325 172,541

Computer Repairs 53,000 58,300 64,130

Computer Rental Stations 10,050 10,352 10,662

Total Sales 219,550 232,977 247,333

Direct Cost of Sales Year 1 Year 2 Year 3

Computer Parts 109,550 111,741 113,976

Subtotal Direct Cost of Sales 109,550 111,741 113,976

Figure 2: Overall Sales by Year

39
 (in Rs.)
SALES BY YEAR

2,800,000

2,400,000 Computer Sales

2,000,000 Computer Repairs

1,600,000
Computer Rental
1,200,000

800,000
400,000
YEAR 1 YEAR 2 YEAR 3

All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative of the whole
group during my job training. I have collected data from people linked with different
profession at Chennai.

RESEARCH PLAN:
Preliminary Investigation: In which data on the situation surrounding the problems
shall be gathered to arrive at
• The correct definition of the problem.
• An understanding of its environment.
Exploratory Study: To determine the approximate area where the problem lies.
CHAPTER 5
LITERATURE REVIEW

Brand Image

The concept of brand image has been very significant to consumer behaviour from post
1950’s. As Aaker and Keller confirmed in Hsieh’s study that, “brand image has been

40
considered a vital part of a firm’s marketing program, not only because it serves as a
foundation for tactical marketing mix issues but also because it plays an integral role in
building long term brand-equity” (1990).

Definition

Earlier definitions of brand image are presented in broad terms by Dobni (1990) who put
forward the following writers understanding of brand image. Newman stated it as
“everything the people associate with the brand” (1957). Reynolds (1965) confirms that
an image was centred on drawing a few key beliefs from a vast variety of sources, thus
creating your own impression based on the brand. Herzog’s concurs that brand image
was “the sum of the total impressions.” (1973). Indeed, such definitions all concur
together; echoed by the words of Levy who stated that “a brand image is a constellation
of pictures and ideas in people’s minds that sum up their knowledge of the brand and
their main attitudes towards it” (1978). A more recent insight into brand image was
added by Woodside who “defined image as the degree of positive or negative affect
associated with psychological object” (Reid, 2001).

From these definitions a clear trend is appearing with regard to the perception of brand
image with key figures around the mid-nineteen hundreds, supporting a collective view
that an individual takes in a collaboration of ideas that the company puts forward as a
representation of themselves. This allows them to draw a clear conclusion of a company
from a few certain points which strike a cord with the individuals.

Theory behind brand image

According to Tyler (1957), there are three approaches to brand image: Subjective,
Objective and Literal.

The first type, is a subjective image, this is when a potential customer hears or
sees the brand name/logo and feel obliged to purchase the product or service, despite a

41
lack of understanding as to why this is the case. The case simply relates to how the brand
is perceived as significant to an individual’s self-consciousness.

The second type of brand image is the objective form which is the attempt to
generate an emotional need for the product, leaving you with the feeling that you need to
purchase the product so as to satisfy this need.

The third is literal image, i.e. a logo which represents a company. This implies
that upon seeing this picture/logo, the name of the company does not need to be uttered
as the picture tells the consumer the whole story e.g. Nike with the tick or McDonalds
with the golden arches. Evidently, the approach used to obtain and sustain a brand image
will vary upon several factors as reflected by the analysis presented by Tyler.
Oxenfeldt and Swann’s idea was that the brand image should allow the company to
establish its position within its market segment, protecting it from competition, thus
allowing them to build upon this with market share growth (Park et al, 1986).
Moreover Park et al (1986) put forward in Bhat’s article that the importance of
establishing a brand image relevant to its market segment in which it is based, is
significant so as to ascertain a strong brand position, help create a barrier to entry for
potential competitors: thus raise the brands performance in the market.

Further, Meenaghan stated that “at the product/brand level the components of
identity are in effect the elements of the marketing mix, which combine to form the
image of the brand in the mind of the consumer” (1995). From this, it is clear that to gain
a strong brand image, one needs to exploit all areas of the marketing mix to achieve what
Oxenfeldt and Swann stressed and that brand image is the key component in establishing
market dominance. Also, Krishman (1996) in Faircloth’s assessment with the aid of the
Landor survey discovered that there is a strong correlation between brand equity and
brand image. The stronger the brand equity, the stronger the brand image and vice versa.

Reid’s (2001) understanding of brand image concerns the product of interaction

involving the consumer’s specific experience with a certain brand, helped by advertising
which reveals how the brand is to be understood and used, predominantly for brands that

42
contend at parity. Another contemporary understanding of brand image was put forward
by Hsieh (2002), who felt that building a brand image based on the identified benefit-
based image dimensions consisted of a set of benefit brand associations. This helped
consumers understand with clarity what a brand can do for them-symbolically,
economically, sensorial or as a utility. White and Hsieh (2002) seem to recognise the key
importance that advertising plays in promoting the elements of a brand image thus
differentiating the brand from rival brands, giving them a competitive advantage.

To summarise, it is plain to see that these academics are in complete agreement

that one of the key attributes of a company, if not the key attribute, is the brand image. It
is evident that there is a clear link between brand image and market share, as depicted by
Krishman’s research. In addition, establishing a strong brand image is indeed a powerful
way of developing market power, which consequently helps to create a tight control over
its position within the market.

Due to barriers to entry, a rounded marketing plan focussing on all aspects of the
marketing mix; this also helps to retain a consistent consumer interest.

Brand image: practical example

In this section we will relate how brand image is encompassed in modern organisations
and how they use this as a comparative advantage over there rivals to ensure that they
keep there competitive edge.

Manchester United
In the Brand Strategy journal, the players’ were seen to be key to any clubs brand image.
The actions of players’ and the perception by supporters is hence key to brand image. For
examp le, ex-Man Utd David Beckham opened the Manchester Commonwealth Games
wearing an Adidas sweatshirt. These images were then broadcast across the globe and
this was much more powerful then his endorsement through advertising. (Brand Strategy
briefing: Saving face of sponsorship).

These sort of images enable organisation’s such as Man Utd to develop into icons
which according to Douglas B. Holt is one step further than brand image, as ‘they

43
succeed because they forge a deep connection with the culture. In essence, they compete
for culture share.’ This can clearly be applied to industries, like, the football industries, as
many fans have a strong link between them and their club i.e. it is part of their culture.

Summary

In summary, from our research, it is clear that there is a link between successful
advertising and a well-established brand image. This was made clear in our theory
research, which was also represented, in our practical examples. Furthermore, it appears
that to generate a strong brand image, requires continuous, diverse advertising over a
period of time, which satisfies all areas of the marketing mix, allowing a firm to generate
a rounded brand image.

CHAPTER 5
DATA ANALYSIS, INTERPRETATION AND DIAGRAMMATIC
PRESENTATION

Q1. Respondent Age?

44
TABLE 3: Age

SERIAL NO. AGE CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

1. 18-23 YEARS 40 20%

2. 24-29 YEARS 70 35%

3. 30-35 YEARS 60 30%

4. 35 YEARS AND 30 15%

ABOVE

TOTAL 200 100%

Base 200 respondents

Figure – 3: Age

45
Interpretation

From the table and graph above it can be seen that

• 20% respondent’s age are 18 to 23 years.

• 35% respondent’s age are 27 to 29 years.

• 30% respondent’s age are 30 to 35 years.

• 15% respondent’s age are 35 to above years.

Q2. Marital Status?

46
TABLE 4: Marital Status

Sr. No. Category No. of Respondents Percentage

1 Married 60 70%
2 Unmarried 140 30%
Total 200 100%

Figure 4: Marital status

Interpretation
From the table and graph above it can be seen that
• 70% respondents are Un-married.
• 30% respondents are Married.

47
Q3. Educational Qualification?

TABLE 5:Educational Qualification

Sr. No. Category No. of Respondents Percentage
1 Under graduate 50 25%
2 Graduate 80 40%
3 Post graduate 70 35%
Total 200 100%
Base 200 respondents
Figure 5: Educational Qualification

Interpretation
From the table and graph above it can be seen that
• 25% respondents are Under graduate.
• 40% respondents are Graduate.
• 35% respondents are Post graduate.

Q4. Number Of year’s Are You in Chennai?

48
TABLE 6: No of Years in Chennai
Sr. No. Category No. of Respondents Percentage
1 Less than five years 78 39%
2 More than five years 122 61%
Total 200 100%
Base 200 respondents
Figure 6: No of Years in Chennai

Interpretation
From the table and graph above it can be seen that
• 39% respondents are in Chennai for less than five years.
• 61% respondents are in Chennai for more than five years.

Q5. Your Occupation?

TABLE 7: Occupation
49
 Sr. No. Category No. of Respondents Percentage
1 Business 40 20%
2 Profession 108 54%
3 Service 52 26%
Total 200 100%
Base 200 respondents

FIGURE 7: Occupation

Interpretation
From the table and graph above it can be seen that
• 20% respondents Occupation is Business.
• 26% respondents Occupation is Profession.
• 54% respondents Occupation is Service.

Q6. Your annual peripherals requirements?

TABLE 8: Annual Peripherals Requirements
Sr. No. Category No. of Respondents Percentage
1 Less than 0.5 lacs 98 49%

50
 2 Between 0.5 to 1 lacs 62 31%
3 Between 1to 1.5 lacs 30 15%
4 More than 1.5 lacs 10 5%
Total 200 100%
Base 200 respondents

FIGURE 8: Annual Peripherals Requirements

Interpretation
From the table and graph above it can be seen that
• 49% respondent’s is less than 0.5 lacs.
• 31% respondent’s is between 0.5 to 1 lacs.
• 15% respondent’s is between 1 to 1.5 lacs.
• 5% respondent’s is more than 1.5 lacs.

Q7. Are you a member of SM Computers?

TABLE 9: Member of SM Computers

Sr. No. Category No. of Respondents Percentage
1 Yes 84 42%
2 No 116 58%
Total 200 100%

51
 Base 200 respondents

FIGURE 9: Member of SM Computers

Interpretation
From the table and graph above it can be seen that
• 42% respondents are member of a SM Computers.
• 58% respondents are not member of a SM Computers.

Q8. What is your perception about different products/services provided by SM

Computers?

TABLE 10: Perception about different Products

Sr. No. Category No. of Respondents Percentage
1 Lucrative 120 60%
2 Not lucrative 50 25%
4 No idea 30 15%
Total 200 100%
Base 200 respondents

52
 FIGURE 10: Perception about different Products

Interpretation
From the table and graph above it can be seen that
 25% respondent’s perception about different products is lucrative.
 60% respondent’s perception about different products is not lucrative.
 15% respondent’s have no idea.

Q9. Do you want to buy computer parts in SM Computers?

TABLE 11: Buy Computer parts in SM Computers

Sr. No. Category No. of Respondents Percentage
1 Yes 160 80%
2 No 10 5%
3 Will tell later 30 15%
Total 200 100%
Base 200 respondents
FIGURE 11: Buy Computer parts in SM Computers

53
Interpretation
From the table and graph above it can be seen that
• 80% respondents are interested to buy products in SM Computers.
• 5% respondents are not interested to buy products in SM Computers.
• 15% of the respondents say that they will tell later.

Q10. Are you aware that SM Computers provides you a Genuine Service if you buy
a product in SM Computers?
TABLE 12: Services Provided by SM Computers
Sr. No. Category No. of Respondents Percentage
1 Yes 160 80%
2 No 40 20%
Total 200 100%
Base 200 respondents
FIGURE 12: Services Provided by SM Computers

54
Interpretation
From the table and graph above it can be seen that
• 80% respondents are aware that SM Computers provides a Genuine
Service if they buy a product in SM Computers.
• 40% respondents are not aware of it.

Q11.Are you aware of different terms and conditions which are very much essential
to maintain a Membership at SM Computers?
TABLE 13: Aware of Terms and Conditions
Sr. No. Category No. of Respondents Percentage
1 Yes 25 12%
2 No 175 88%
Total 200 100%
Base 200 respondents
FIGURE 13: Aware of Terms and Conditions

55
Interpretation
From the table and graph above it can be seen that
• 12% respondents are familiar with different terms and conditions which
are very much essential to maintain member with SM Computers.
• 88% respondents have no idea about it.

CHAPTER 7
SUMMARY OF FINDINGS:

Finally some recommendations for the company are as fallows:-

• To make people aware about the benefit of buys products in SM

Computers, following activities of advertisement should be done through

1. Print Media.

56
 2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.

• The SM Computers should provide more beneficial offers to customers for

maintaining them.

• Company should organize the program in the society, so that people will
be aware about the company and different products of the SM Computers.

• Make sure people understand about the various benefits of its products.

• Company should open more branches in different cities.

CHAPTER 8
SUGGESTIONS

 Desktop Company having large number of channel partners but it is not supporting &
taking care all of them equally which results in increasing discontentment among new
channel partners because it’s not possible for company to support all of them equally.
Company should take some positive action against it.

 Company executive should visit dealers on regular basis.

57
 They Should pay proper attention towards checking of various components of PC
before end user delivery. Otherwise it tends towards defame of brand name in
comparison to rivals.

 Need to expend customer care center.

 Proper attention should be paid for advertisement planning otherwise it may lead to
problem for dealer as well as for company.

 Company should tie up with some event management company to organize various
promotional activities like canopy, Carnival.

 Company should make policy for fixed end user price for all dealers so that fair game
will be played & dealer would not to compromise on their margin.

CHAPTER 9
CONCLUSION

The management philosophy of SM Computers is based on respect for each of our

fellow employees, respect for every customers, and individual responsibility. SM
Computers management team consists of the owners, who are experienced
entrepreneurs possessing a breadth of functional experience in computer technology,

58
information technology, management and retail. They will share the senior management
responsibilities regarding sales, development, operations and production for finances and
marketing.

SM Computers need to find a networking specialist for their clients who require
that service, but as the need for that will be on a job-by-job basis, we will use an
independent contractor.

The organizational structure and personnel plan reflect an organization that is

customer oriented and technologically proficient, while efficiently managing cost
controls and productivity.

According to my findings Company’s promotional activities for recruiting sales

executives are also very less.

So, at last the conclusion is that there is tough competition ahead for the company
from its major competitors in this sector.

Last but not the least I would like to thank SM Computers for giving me an
opportunity to work in their premises. I hope the company finds my analysis relevant.

CHAPTER 10

APPENDIX
10.1 QUESTIONNAIRE

Dear Sir/Madam,

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 I am a student of SRM University, Chennai and presently doing a project on
“STRATEGIES IMPLEMENTED TOWARDS COMPUTER SALES IN SM
COMPUTERS PVT LTD, CHENNAI”. I request you to kindly fill the questionnaire
below and I assure you that the data generated shall be kept confidential.

.
Name: ………………………………………………………………………..
Address: ……………………………………………………………………..
Contact No :®………………( O)……………… (M)………………………
City: ………...............Pin: ………………….State: ……………………….

1. Your Age: ____________________

2. Education Qualification.
• Undergraduate □
• Graduate □
• Post graduate □

3. Marital Status.
• Married □
• Single □
No. of Children: __________

4. Number Of year’s Are You in Chennai.

• Less than five year’s □
• More than five year’s □

5. Occupation.

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 • Business □
• Profession □
• Service □
(Please mention below the type of business/profession you are in incase of service
please mention your organization name and designation)

6. Your annual peripherals requirements?

• <than 0.5 lack □
• Between 0.5 to 1 lack □
• Between 1 to 1.5 lack □
• >than 0.5 lack □

7. Are you a member of SM Computers?

• Yes □
• No □

8. What is your perception about different products/services provided by SM

Computers?

• Lucrative □
• Not lucrative □
• No idea □

9. Do you want to buys computer parts in SM Computers?

• Yes □
• No □
• Will tell later □

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10. Are you aware that SM Computers provides you a Genuine Service if you buy a
product in SM Computers?
• Yes □
• No □

11. Are you aware of different terms and conditions which are very much essential
to maintain a Membership at SM Computers?
• Yes □
• No □

Date:
Place: Signature

Thank You

CHAPTER 11

REFERENCES

1. Ronald Henkoff, “Service Is Everybody’s Business,”Fortune, June 27, 1994, pp. 48–
60.

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2.See G. Lynn Shostack, “Breaking Free from Product Marketing,” Journal of
Marketing.

3. April 1977, pp. 73–80; Leonard L. Berry, “Services Marketing Is

Different,”Business, May-June 1980, pp. 24–30; Eric Langeard, John E. G. Bateson,
Christopher H. Lovelock, and Pierre Eiglier, Services Marketing:

4. New Insights from Consumers and Managers

(Cambridge, MA: Marketing Science Institute, 1981);

5. Benjamin Scheider and David E. Bowen, Winning the Service Game (Boston:
Harvard Business School Press, 1995); and Leonard L.Berry, Discovering the Soul of
Service (New York: Free Press, 1999).

6. Sam Zuckerman, “E-Trade Loses $5.2 Million Despite Late Business Surge,” San
Francisco Chronicle,January 20, 2000, www.sfgate.com

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