CUSTOMER SATISFACTION TOWARDS NIPPON PAINTS

CHAPTER- I

INTRODUCTION

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The field of my research is Customer Satisfaction which focuses on customer’s

perceptions . Many firms are interested in understanding what their customers thought
about their shopping or purchase experience, because finding new customers is
generally more costly and difficult than servicing existing or repeat customers.
Such researches provide a wider scope to the firms in the terms of high customer
satisfaction.

Definition:

CUSTOMER SATISFACTION

“Customer Satisfaction , business term of how the products and the services supplied
by the company meet or surpass the customer expectation. It is the key performance
indicator within the business.” By , Berlin Asong

Customer satisfaction can greatly achieved by imparting Customer Relationship

Management(CRM) in the company.

BUSINESS TECNIQUES OF CUSTOMER SATISFACTION

 One of the key customer satisfaction techniques is the need to provide front line
employees with the ability to respond to customer situations quickly without the
need to ‘ask for permission’.
 Innovation drives customers' satisfaction. As customers' needs keep changing, an
innovation-driven company is capacitated to exceed customers' expectations.
 To provide after sale services.
 Listen actively and carefully.
 Anticipate that the customer will be asking questions. They may be easy, they be
hard. But encourage them anyway. If you cannot provide an answer, promise to
find out the answer from someone who can.
 Be patient, look from the customer's point of view and work from there. This point
of view will always give you the best outlook on the situation.
 Always keep a smile on your face when dealing with customers which can lead to
customer satisfaction. This positive attitude can rub off and turn a potentially
negative situation into a positive experience.

RECENT METHODS THAT TODAYS FIRM ADOPT TO

INCREASE THE CUSTOMER SATIFACTION

In order to stay competitive and remain profitable, businesses have to focus on the
quality of their customer service. Companies that invest time, energy and money into
developing and nurturing quality so customers can have a satisfactory experience are
going to be more profitable and better likely to experience more sustained growth

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over the long-term.

*Customer-Centric Attitude.

Operations should be customer-centric meaning that the customer's best interests

should always be foremost. Service should be offered in a helpful way and with a
smile. Both management and employees should show interest towards the customer
and strive to give them a good experience.
Today's companies must strive even harder than abiding by this golden rule of
customer service.

*Customer care.

Is something which is done even after the product is purchased. Many companies are
interested in knowing the reason why consumers have purchased the goods and
services or even the goods are not purchased. Managers interested in customer care
try to collect a database as to why the customers have purchased the competitors
product and service and what will be the level of satisfaction if it is introduced in our
product or service. And also to find the level of expectations and their level of
dissatisfaction.

*Customer focus.

Is attained when everyone in the organization make efforts to focus the activities
towards the satisfaction of the customers right from the stage of new product planning
and to product modification to the stage of elimination of the goods and services
everything revolves around the customers. All the activities are focused on the
customer satisfaction.

*Customer Service Training

Another strategy to improve customer satisfaction is to invest in customer service

training. All employees should be on board with how to treat customers and help them
gain a valued experience. The quality of customer service can easily make or break a
business.

The experience the people have received is the most important aspect in selling pure
services or services with tangible goods. Once the customers is satisfied with the
service his loyalty towards that product or company is at its peak.
Companies today are doing a lot of self- introspection that they are really giving the
said services to the customers. The important questions asked is “ Is service our top

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Priority?” Are the customers satisfied?” Are we improving on the quality of the
services regularly?”
Companies are spending more money and time to see that the services are evaluated
and improved as per the expectations of the customers. In fact , the companies
globally known for their services are always in the process of finding opportunities to
improve on the quality of the services.
Better results can be seen when the organizations makes use of external, internal, and
interactive marketing.

*Communication

Communication with customers is also important. It's a good idea to always provide
customers with ways they can contact you and offer ways to contact them (if they
choose). Offering e-mail, telephone line, web contact or other ways for customers to
offer comments and/or complaints is of value.

* Customer Relationship Management Software

Customer Relationship Management is a process of managing detail information
about individual customer and carefully managing all the customers touch points with
the aim of maximizing customer satisfaction and customer loyalty.

Customer Relationship Management Software. Customer relationship management

(CRM) software has become a strategy many companies employ to help increase
customer satisfaction. Through using CRM tools and accompanying philosophy,
businesses can examine and analyze what customers want and strive to meet this
demand before they even walk in the door.
BENEFITS

 CRM aims at individual customers. It tries to develop customers relationship by

looking into his needs and requirements.
 CRM helps in two way communication by understanding the messages of the
customers and responding to it. Thereby gaining customer loyalty.
 CRM helps to customize the products and thereby reducing the rate of customer
defection.
 CRM tells the company what product or service the customer needs today and
what it will need in future.

*Ask for Feedback

Being interested in customer feedback is always a valuable practice to engage in to
increase customer satisfaction. What better strategy and technique to find out how to
satisfy your customers than to ask them?
Surveys, questionnaires, talking to customers as they shop, and then following up
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with calls or e-mails are all good ways to get feedback.

*Quality Control
Quality is important to customer satisfaction and the level of quality directly plays
into a business' ability to meet customer expectations. Quality should be monitored
for both service and the type of products offered; as a part of this guarantees and the
willingness to stand behind service and/or products is necessary.

*Creating Customer Delight

Customer delight is when the standard of the goods and services are much higher than
the expectations of the customers , this not only satisfies them but ssurprise and
delight them. To create customer delight the company will not only in crease the
standard of service but will train its personnel to deliver in its best possible manner
the services as expected by the customers.
Customer delight depends on the reliability factor oif the company. This is the ability
to perform what has been promised to the customer. Companies who focus on
customer delights should be dependable and have accuracy in delivering the services
to the customers.
Companies with much attitude of empathy and always paying individual attention to
its customers which in turn builds customer delight. The advantage is manifold
because it creates brand loyals and customer loyalty.

Objectives of Research:

The primary objective of the my research is :

 To know the significance of customer satisfaction and to search an optimum design

for an effective customer satisfaction survey.

 To track and measure the customer satisfaction in relation to Nippon Paints as a

product.

 To know the requirements of the customer satisfaction.

 To know the level of awareness of the Nippon Paints as product.

The secondary objectives of my research is to :

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 To find what the customers want from Nippon paints company

 Whether there preferences for Nippon Paints as a product is above the other
competitors eg. Nerolac paints ltd.

 Reasons for brand shifting in case of negative feedback.

 Are the customers satisfied by the services provided by Nippon Paints.

LIMITATIONS

 No personal interview could be conducted as most of the respondents of the

questionnaire were able to answer it only through mail.

 A limited sample size of 10 customers was considered because of time

constraint and certain limited boundaries (not specifically mentioned). Research might
not reflect the real target market as the total sample size is comparatively less to
represent the entire population.

 The income of the customers was not considered. As information of income is

not provided by customers. Hence the level of satisfaction and purchase utility may
vary due to this factor.

 This research is carried on random basis, and through email as mentioned

above, therefore the customers are from different areas. Hence the results of this
research should not be taken for one particular market place.

 This data is conducted at primary level therefore it might be subjected to bias.

 This research is carried by taking internet facility ,hence there is not direct
contact with the customers.

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CHAPTER- II

COMPANY PROFILE

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INDUSTRY PROFILE

The Indian paint industry is over 100 years old. Its beginning can be traced back to
the setting up of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Until
World War II, the industry consisted of small producers and two foreign companies.
After the war, the imports stopped, which led to the setting up of manufacturing
facilities by local entrepreneurs. Still, the foreign companies continued to dominate
the market. Initially British paint companies such as Goodlass Walls (now
GoodlassNerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and
Blundell &Eomite dominated the market.

There are now twelve players in the organized sector of India's paint and coatings
market and over 2,000 in the unorganized sector. In 2003-04, the organized sector
held 70% share of the approximately $1.5 billion (Rs 6,800 crore) industry, while the
balance was made up of the unorganized units.

The major players are Asian Paints, Goodlass Nerolac, Berger, ICI and Shalimar.
Recently, world leaders like Akzo Nobel, PPG, DuPont and BASF have set up base in
India with product ranges such as auto refinishes, powder coatings and industrial
coatings. Kansai Paints of Japan, which entered into collaboration with Goodlass
Nerolac in 1984, is now the holding company for GoodlassNerolac with
64.52%equity holding. PPG has a joint venture with Asian Paints to manufacture
industrial coatings. Jenson & Nicholson and Snowcem India are no longer active
players because of dwindling sales in recent years.

In the 1990s, helped by a growing economy, the Indian paint industry recorded a
healthy growth of 12-13% annually. This was mainly due to a drastic reduction in
excise from a staggering 40% to 16%. However, the growth was restricted in 2002-03
to single digits. There was a revival in 2003-04 with a robust growth of 13%.

The Indian paint industry has two main market segments-industrial and decorative
paints. While industrial paints are used for protection against corrosion and rust on
steel structures, vehicles, white goods and appliances, decorative paints are used in
protecting valuable assets like buildings.

The Indian decorative business has a share of approximately 77% in total sales. In
foreign countries 50-70% of the business is from the industrial segment.

The trends are likely to shift in India too, but at a slower pace, in favor of industrial
paints. The per capita consumption of paint in India is 700 grams versus 19 kg in the
U.S. and 2.7 kg and 5.8 kg in other developing countries like China and Brazil.
Because consumption relates to affordability, the low Indian figure is not a surprise.

Within the decorative segment, the share of exterior paints is 21%, interior emulsions
11%, distempers 30%, solvent-based enamel paint 36% and wood finishes two
percent.

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The exterior category, particularly exterior emulsions, is the fastest growing segment
at 20% for the last three years.

The industrial coatings segment includes high performance coatings with 30% market
share, powder coatings with ten percent, coil coatings with five percent, marine
coatings five percent and automotive coatings 50%.

While Asian Paints was a clear market leader with a turnover of approximately $420
million (Rs 1,943 crores) in 2003-04, GoodlassNerolac was second with
approximately $220 million (Rs 1,010 crores) during the same period.

Organizational Structure

Most of the organized companies in India's paint and coatings market have a
nationwide presence with multilocation manufacturing facilities. The companies in
the unorganized sector are mostly regional, spread in and around their manufacturing
facilities and deal in low value products.

Asian Paints has created a nationwide marketing campaign focusing on all small
interior markets. Not only was the company able to establish itself in interior markets,
the demand percolated to main towns allowing the company to enlist support of large
customers.

Being restrained by FERA (Foreign Exchange Regulations Act) and� MRTP

(Monopolies & Restrictive Trade Practices Act), most players were not allowed to
increase production capacities until the Nineties. With liberalization, these shackles
were removed and other companies have expanded, though the gap between Asian
Paints, which could expand continually and others has widened.

Another winning point for Asian Paints was its strategy to focus on smaller packs
while others were focusing on larger packs. Asian Paints has also been introducing
new product categories, which helped in expanding the market.

This made distribution still more complex as precise forecasts for more than 3,000
SKUs became a challenge for every organization. With the advent of color dispensing
machines supported by all paint companies and sophisticated IT enabled distribution
tools, the situation has eased considerably.

Business Reengineering

With the industry business becoming complex, most companies have restructured and
have used information technology as the key driver for reengineering. They have
aligned their organized structures on the basis of expanding business and its
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complexities. This was essential in order to tighten controls.Today, companies have

divided their sales organizations into decorative, industrial and high performance
coatings business units. The national level organization structure is split into zones,
regions and branches.

Color dispensing machines, both computerized and manual, have transformed the
business, particularly on the manufacturing and distribution sides. Earlier, paint
companies were required to manufacture all the shades (30-50 depending on a product
line) in all the packs (five to eight packs).

The demand pattern was difficult to predict even with the support of historical
data/trends as consumer preferences were changing fast. The machines altered the
production pattern from shades to producing bases thus providing economies of scale,
reduced inventory levels and eliminated redundancy of stocks. It has cut down the
new products introduction cycle considerably. This has helped expand the range of
shades for each product category, offering a choice of shades to consumers in the
hundreds. For the retailers also, it eliminated the sales loss for want of range/desired
shade. The machines have brought a total change in the way business is transacted and
revolutionized business processes as well.

There are approximately 11,000 color-tinting machines installed at the dealers' end
including multiple machines on some counters. Also popular are the gear mixers for
2K finishes in auto refinishes, which are installed at the dealers' end and at leading
garages.

The dependence on information technology has increased remarkably from a corner

room EDP operation to playing a pivotal role in the way business in transacted. While
Asian Paints has invested in i2 technology, GoodlassNerolac has backed up IBM
enabled APO and has upgraded to the latest 3.1 version to improve its distribution and
optimize production scheduling. Both companies are operating on an ERP (SAP R3)
operating system through full connectivity across the factories and branches via V-
SATS, thus virtually working on live data for sales, accounting and purchasing.

GoodlassNerolac has moved one step further by launching its intranet-employee

portal to capture knowledge sitting in the minds/desktops of individuals to a common
platform, which can be accessed by all employees. It has also invested in advanced
business plan performance measurement tools like balanced score cards to track,
review and align performance.

Most companies in the Indian paint industry are functioning on multi-division models
with individual functions controlled by business heads. Some manage their business
through sub-committees. As in the case of GoodlassNerolac there are two levels of
teams managing/guiding business.

While all the policy and major decisions are looked at by the management committee
(MC), which reviews operations on a monthly basis, there is a parallel team-business
analyst team (BAT)-which analyzes the businesses and discusses new initiatives,
working as the think-tank for the company. Recently CAT (Creative Analysis Team)
has been created to work on new long-term initiatives.

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Product Culture

Most companies have an identical range of products for the decorativepaint market. In
the industrial segment, the range of products is more customized and guided by the
technology support provided by the collaborators. In the case of decorative products
the technology has been mostly indigenously perfected over the years and the
products can be divided on the basis of interior and exterior application or in
categories like water-based and solvent-based. Moreover, most companies have been
advertising their products in the exterior emulsions category, which has expanded the
market and triggered a shift from cement paint.

While solvent-based enamels are still popular in India, outside India there is a clear
shift visible from solvent- to water-based glossy enamels. India will take some time
before this change is accepted on account of three hurdles currently faced including
cost (water-based is expensive), low level of gloss in water-based enamels and the
psychological barrier that water-based coatings cannot be superior to solvent-based
coatings for protecting wood or metal surfaces.

Companies not working on operational efficiency business models have been losing.
Asian Paints and GoodlassNerolac have been aggressively working on cutting
costs/operating expenses. Berger has been managing well with economical yet
acceptable formulations and low operating costs.

The industry is not capital intensive and depreciation charges are not significant.
Working capital requirements are moderate. However, most companies in the lower
rungs are unaware about the realization of debtors. Added to this has been the
problem related to collection of installments on color dispensing machines, which are
mostly purchased on lease.

The highest efficiency required is in physical distribution. The poor forecasts of

demand result in poor distribution. As a result, companies are investing in
sophisticated supply chain management tools. Margins have remained under pressure
due to dropping prices, which have been more strategic and forced by the market
leader. Companies have been working on improving internal efficiencies to retain
profits. The pressure from OEMs to reduce prices has also been a cause for low
profits for paint companies. Even with the turnaround of the Indian economy, the
pressure has not relented. The customer, or retailer, has also been dictating his terms
as most companies have common counters to meet their objectives. So they have no
choice but to lure more customers through incentives. Lower productivity of high cost
labor in the old units has been another problem. This in totality has increased
operating pressures.

Some of the international players are already present in India's paint and coatings
market, but mostly for industrial coatings. They include Akzo Nobel, BASF, Henkel
(pre-treatment chemicals), PPG, ICI (decorative) and DuPont (auto refinishes). A few
others are present through collaborations like Kansai and Nippon.

For the decorative range of products, it is difficult for international companies to set

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up shop on a stand alone basis because of existing barriers such as the strong network
of established players, brand image, range of products (Indian context) and required
distribution logistics. Therefore, the safer route has been and will be to tag along with
existing companies. For industrial products, however, this may not apply and based on
their tie-ups in home countries and their OEM customers, the required range can be
made and sold.

There is however room for niche players, with radical and unique ranges of products
properly conceived and marketed in the Indian context and supported with machines.

Current Trends

The Indian paint and coatings industry is riding high on the growth in the Indian
automobile industry, new construction in the housing segment and improving
infrastructure throughout the country. Thirty percent of the paint business is
comprised of new construction projects. GDP growth projections of six to 6.5% in the
current year mean a growth of nine to ten percent in Indian paint business. The growth
will be 12-13% in the industrial segment and eight to nine percent for decorative
paint. The Indian automobile industry has been performing remarkably well and will
benefit the market leader in the segment, GoodlassNerolac.

As for the future, the industry has predicted a CAGR of eight to nine percent for the
next five years compared to last year's growth levels of 27.4% for cars and 8.9% for
two wheelers. The Indian housing industry is likely to do well in the current year as
well, recording a growth rate of 35% last year. As a result of the overall health of
India's economy, it is safe to predict a nine to ten percent growth rate for the Indian
paint industry in the next five years.

Consumers can look forward to new product launches, some for application in special
areas. Companies will be increasing the value added services available to customers
by offering a variety of finishes through specialized and trained applicators. There
will be more options like ranges of colors/finishes for wood applications through the
tinting machines. Additionally, the trend towards water-based coatings is likely to set
in both for industrial and decorative applications. While India has not yet embraced
the DIY concept as cheap labor is still available, exclusive retail chain stores
sponsored and run by Indian paint companies will become a reality.

The Indian paint industry has progressed well and moving ahead is likely to be
influenced by several factos including new technologies, new innovative products,
new associations, consolidation of industry and poor performers getting out of the
market. Ultimately, in the years ahead there will be only four or five key players
operating in the Indian paint market.

Sidebar

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Major Paint and Coatings Manufacturers Ride India's Real Estate Boom

Riding on the back of a real estate boom, paint companies are extremely bullish on
India, which is among the fastest growing markets across the globe.

Among the international companies that are increasing their investments is the
Japanese paint major, Nippon, which is investing approximately Rs 80 crore for
manufacturing facilities in Gurgaon and a 25-acre unit in Chennai.

With Akzo Nobel likely to acquire ICI Paints globally for $16 billion, the Dutch giant
will also increase its business in India.

Akzo already has a powder coatings business in India through its acquisition of
Courtaulds in July 1998, and it has also entered the decorative paints segment.

DuPont is also expected to expand its presence in India.

Industry experts expect other companies like Behr and BASF to set up shop in India
as well.

The Rs 11,000-crore Indian paints market is growing at double digits and the
decoratives segment, which accounts for 70% of sales, is growing in excess of 20%.

Asian Paints, the country's largest paint manufacturer, also has major expansion plans.
The company is setting up its largest facility at Rohtak in Haryana. It will focus on
emulsions.

"The demand has exceeded our capacity and hence we are looking at this new plant,"
said Ashwin Dani, vice chairman and managing director, Asian Paints. 

Competitor Kansai Nerolac is also planning an 18,000-ton plant at a cost of Rs 68

crore, which will start production in two or three years. Berger Paints has 75% of its
business in decorative paints. "In India, the housing sector is booming and this has
provided a major boost to the decoratives business. This segment is expected to grow
at 18-20%," said Abhijit Roy, vice-president marketing, Berger Paints.

COMPANY PROFILE

 As a paint and coatings specialist, NIPSEA Group beautifies urban landscapes

and continually creates superior Nippon Paint products to enhance people’s
lives. With more than 70 NIPSEA companies spread throughout Asia, it
understands the local needs of its customers in every community. Each
company embraces diversity and operates together with a strong Pan-Asia
presence.
 NIPSEA Group has over 23,000 employees with 80 manufacturing facilities
and operations in 17 geographical locations with its headquarters in Singapore,

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efficiently serving all aspects of the business, from production to customer

satisfaction.
 More commonly known as Nippon Paint across Asia, people associate the
name with dedication to quality and top-of-the-line innovation. With its
exceptional customer service and ground-breaking products, NIPSEA Group
has led the way in changing the landscape of the paint and coatings industry.

Our purpose
 At NIPSEA Group, employees come from different backgrounds and represent
unique cultures, but as diverse as it is, the company is bound by its values and
purpose that magnify Excellence and Growth for its people & Value
Creation for its customers and shareholders in the Paints & Coatings industry
through our:

OUR VISION

INNOVATION
 Complementing technology and innovation with its coatings products and
solutions.

SERVICE
 Engaging consumers with solution that is cost efficient with their well-being
in mind as well as investing resources to meet the needs of the communities.

 LEADERSHIP
 A market leader in Paints and Coatings – Industrial, Automotive, Heavy Duty
Coatings and Marine industries with products used by professionals,
architects, trade users and home owners.

 VALUE DRIVEN
 A value-driven initiative to achieve sustainable business impact and outcomes,
bringing greater value to its customers and growth to the company.

 FOCUS
 Real emphasis on “Focus” in each of the market it operates in by increasing
regional capacity and stimulating economic growth.
 .

STRONG GROWTH IN ASIA PACIFIC

 NIPSEA Group has expanded to a total of 16 countries and regions including
Singapore, China, Hong Kong, Malaysia, Vietnam, South Korea, Thailand,

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Taiwan, India, Pakistan, Sri Lanka, Bangladesh, Philippines, Indonesia and

Middle East and still growing to date. It has become one of the best coatings
and solutions partner for architectural, automotive, industrial, marine, O&G,
specialised clients; bringing joy and happiness through its colour trends to
millions of families across the world.
 NIPSEA Group has maintained and solidified its position as one of the
dominant coatings manufacturer in the Asia Pacific region in production and
sales revenue through the years, making significant contributions to the
development of the Asia Pacific coatings industry. After more than 50 years of
growth, NIPSEA Group has established over 61 manufacturing facilities and
operations across Asia Pacific region.
 Nippon Paint was established in Tokyo by Mr. MotekiJujiro in 1881 and is
now the largest coatings manufacturer in Asia. The company pioneered the
first paint plant in Japan. There was a rapid relocation of manufacturing
facilities overseas in the latter half of the 20th century and this is expected to
grow in the 21st century. Nippon Paint took its first step toward globalisation
when it set up a Singapore joint venture in 1962. Nippon Paint Holdings Co.
Ltd is a strategic shareholder in NIPSEA Group since 1962 with its head
office located in Singapore where the first Nippon Paint factory in Asia was
built.
 NIPSEA Group* is officially a subsidiary of Nippon Paint Holdings.
 *With the exception of PT Nippon Paint Indonesia

AT I O N G R O U P ( 2 0 1 5 )
AWARDS & CERTIFICATIONS
 ESCO Project Awards 2012
Nippon Paint Thailand Won “ESCO Project Awards 2012” as an
enterprise successful in using ESCO system by using Technology to help
conserve energy. (2012)
 Most Trusted Brand Award – Gold
Nippon Paint Hong Kong achieved Reader’s digest Most Trusted Brand
Award – Gold. (2012)
 Asia Pacific Green Excellence Award NIPSEA
Group achieved Frost & Sullivan Asia Pacific Green Excellence Award for
Product Innovation in Decorative Coating. (2011)
 Archidex Green New Product Award
Nippon Paint Malaysia awarded Archidex Green New Product Award
and HomeDec New Product Award for the Nippon Paint Hydro Series. (2011)

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CHAPTER 3
THEORITICAL
ASPECTS

MY project gives brief study, on what is customer satisfaction and the techniques of
achieving Customer Satisfaction. It also provides significance of the conducting the
customer satisfaction research and how and when to conduct it.

Based on the topic, this project analyzes the “CUSTOMER SATISFACTION " IN

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REFERENCE TO THE ASIAN PAINTS LTD”

It gives a brief report on the profile of the Asian Paints Co. About its vision , history,
current status, its achievements as a firm in the paint industry. The project also speaks
on its various product profiles and its future plans.
It shows what strategies the Asian paints ltd have used for satisfying the customers.

To undertake the research the questionnaire is prepared so as to know how much the
customers are satisfied after using Asian Paints, are they willing to be a loyal
customers or do they prefer other brands. The survey reflects the areas where the
company needs to improve and the areas where it from where it has gained its
popularity.

Significance of Customer Satisfaction Research

In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element
of business strategy. Customer satisfaction not only create loyalty among the
customers but it increases the goodwill of the company by uplifting the market value
of the brand.

Customer researches are conducted to answer who our customers are? What do they
like to buy?, when do buy and how do they buy?, it examines the taste, preferences
and the attitude of the customers. Mostly it tends to become qualitative motivational
research of customer behavior. Here, the self concept, ego, personality and life style
of the consumers are studied. There is an attempt to study beliefs, opinions of the
customers.

By conducting such researches the company can minimize its defects in the field of
production and can deliver high quality of services in relation to itscompetitors. Such
researches can be carried by conducting surveys through interviews and questionnaire
methods. These questionnaire methods form a path of getting the customers positive
and negative feedback. The company can then respond to feedback and can retain the
existing customers as well preventing them from shifting to other brands.

A customer complaint could be the insight you have been seeking to learn why a
certain product isn't moving. It can also be an indicator of personnel problems. If a
customer mentions that an item does not work properly, you can research and try to
recreate the problem, potentially finding a fix that will increase sales. A customer's
complaint about an employee's lack of knowledge may reveal a need for more
extensive training, while a grievance about poor customer service provides the chance
to address it with your staff.

By doing so it creates confidence among the customers , leading to word-to-mouth

publicity which is more effective rather than t.v. commercials.

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Why measure the Customer Satisfaction?

Customer satisfaction is tied directly to profitability. Well-established research by

Bain & Company found that, for many companies, an increase of 5% in customer
retention can increase profits by 25% to 95%. The same study found that it costs six
to seven times more to gain a new customer than to keep an existing one. See ( fig.
1.3)

Fig- 1.3

It is important to consistently measure and monitor that input. Without an effective

customer satisfaction research program in place, the company will be losing business,
missing opportunities, and putting itself at a competitive disadvantage.\

In order to measure the customer satisfaction a Customer Satisfaction Survey has to

be carried out.
A closer look at how to formulate survey questions.

1. When to Conduct Customer Satisfaction Research?

The answer depends on the size of the customer base and the purpose of the research.
There are two key types of surveys, and they serve very different purposes:

*Transactional surveys.solicit* feedback directly from the product or service

user about that particular encounter. They are conducted immediately after each
customer transaction.

* Relationship surveys.collect input from people who have an ongoing

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relationship with the company and have had multiple transactions. The respondents
typically are responsible for deciding whether to continue the working relationship.

In many cases conducting both transactional and relationship surveys may

be appropriate.

2. How to distribute the survey?

The best means of distributing a survey depends on whether it is a transactional or

relationship survey. A transactional survey is conducted at the point of customer
contact. Relationship surveys, on the other hand, are most cost-effectively conducted
online.
Online data collection offers significant advantages over other modes of interviewing
customers, and you should use it whenever possible. The advantages include:

*Speed.The Internet offers instantaneous distribution of survey and real-time

accumulation and tabulation of results. This allows for immediate data analysis, even
while the survey is still in progress. The faster responses arrive, the faster they can be
addressed. In contrast, mail surveys suffer from long lag times and low response rates.

*Candor. This is essential for research on sensitive subject matter where studies
indicate people are more likely to answer questions honestly on the Web than they are
on the phone or in personal interviews. (Quirk’s Marketing Research Review, 2003).
Such responses provide insight into what a company is doing well and frequently
provide warning signs about the health of the business relationship.

*Cost.The Internet eliminates postage and telephone costs as well as basic materials
like paper, staples, envelopes, and printing. Because it is self-directed, there is no
interviewer cost. Finally, it’s more convenient.

3. Design an Effective Customer Satisfaction Survey?

A well designed customer satisfaction survey will help measure your progress toward
that goal. A quick way to get started and ensure a successful survey design.

a) Ask Overall Satisfaction Early in the Survey

Ask the general satisfaction question at the start of the survey to avoid bias. This will
allow measurement of customers’ overall impressions of a company or an
organization prior to prompting them to think of specific aspects of the relationship.

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(see fig. 2.5) For example :The first question should be “Overall, how satisfied are
you with bank X?” Then ask for specifics: their teller experiences, the availability of
ATMs, etc

Fig. 2.5

b) Use a 5-point Satisfaction Scale

Question scales should have descriptive labels associated with the numbers, and the
top of the scale should mean that customers are truly “wowed.” The use of “5-point
Satisfaction Scale” provide a sense of intensity of customers happiness with a
product or service.(see fig.3.5)

Fig. 3.5

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An insightful alternative to the 5-point satisfaction scale for customer service is a 5-

point expectations scale. (see fig. 4.6). It provides clear direction and allows
customers a polite way to suggest that a company has not done a great job.

The 5-point Expectations Scale for Service

Fig. 4.6

c) Be Consistent in Your Questions

Consistency is critical in customer satisfaction research.. The key measures of

customer satisfaction, including the overall satisfaction question and those asking
about specific aspects of the relationship, should all use the same scale. For example,
if a 5-point satisfaction scale is used for the overall satisfaction question and 7-point
scales are used for other questions about timeliness of service or product quality, it
will be challenging to quickly uncover weaknesses in the business

d) Keep the Survey Short and Focused

Avoid the temptation to ask everything you’ve ever wanted to know. The more ground
you try to cover, the more likely it is that respondents will abandon the survey.
If you build your own survey be sure to include all the key questions:

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 Overall satisfaction
 An open-ended probing into the reason for the satisfaction rating
 Likelihood of recommendation
 An open-ended probing into the reason for the likelihood of recommendation
 Likelihood of repeat purchase
 Satisfaction with specific attributes of the product or service
 An opportunity to provide additional feedback

e) Ask Demographic or “Firmographic” Questions

Inquiring about demographics or firmographics (company or industry type and size)
enables you to analyze the data by different subgroups—such as new customers or
regional customers.

Interpreting Survey Results

When you’re analyzing customer satisfaction survey results, the most important goals
are:
 Minimizing the low scores and improving the top scores.
 It is important to monitor the “top two-box” satisfaction number, percentage of
those who are very or somewhat satisfied.
 To call out to management the proportion of customers who are dissatisfied and
to reduce those percentages. This is found by learning what those who provide
high ratings have to say and reviewing the results of those who are dissatisfied
with performance.

f) Present Findings and Action Items

Collecting customer satisfaction data is useful only if there is a process established to

deliver recommendations, implement action plans, assign plan owners, and monitor
plan execution, the resources allocated to meet that goal should be determined. Once
the results have been compiled and analyzed, they should be presented to
management with recommendations for resolving the identified weaknesses. There
should be periodic meetings to evaluate progress.

g) Contact Customers
If possible, dissatisfied customers should be personally contacted to see if there is
something that can be done to improve their perception of the business. This is
important to prevent negative word of mouth. The personal contact itself may succeed
in doing that. Additionally, a discount or free product should be considered. If policies
or products are changed based on customers’ feedback, those customers should be
contacted to let them know about those changes and that their feedback was taken
seriously.

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CHAPTER- IV

RESEARCH DESIGN
&
METHODOLOGY

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Sources of Data Collection

Primary source :

 The primary source of my data collection is carried through questionnaire

method.

Secondary source :

 As a secondary source the data is collected through various websites and

books mentioned in bibliography.

 Customer preference reports carried by previous investigators on Nippon

Paints company ltd were observed and studied.

Sample description

Method of Sample selection:

 The method of sample selection is carried through ,the Survey Method.

(Questionnaire By Mail ). In this method the sample of the respondents are prepared.
the questionnaire are then sent by post together with a covering letter explaining the
purpose of the study and requesting the respondents to extend his cooperation.

Size of the Sample:

 The sampling units are the elements of research ,hence the sampling units in
my research are the individuals.

 The sample size is the total number of units in the sample. Hence the total
sample size is 10 units.

Sample Analysis:

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 Itemised rating scale is used with four categories for more reliable ratings of
satisfaction on various elements.

 Ratio scale is used for those elements , where the answers are more of specific
in nature. Example Yes or No.

 The data is summarized and compressed into tabulation form.

 Bar - graphs and pie charts are used to interpret the tabulated data and the
inferences are drawn.

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CHAPTER - V

DATA PRESENTATION
ANALYSIS
&
INTERPRETATION

Analysis and Interpretation of Questionnaire no.1

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(for general purpose)

Observing and studying the questionnaire No.1 the data

collected from it is processed into the following tabulation and
graph form.

Figure - 1

INFERENCE:

From the above table , out of the 10 respondents, following is the inferences for
different elements.

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Overall Satisfaction: the overall satisfaction rate is 60%and the total dissatisfaction
rate is 40%. The gap between the two is 60% - 40% = 20%. This means the overall
satisfaction rate is 20% more than the dissatisfaction rate. That shows improvement
but not at the sufficient rate.

Sales Representative: the total satisfaction is 30% and the total dissatisfaction is
70% out of which 20% are very dissatisfied. The gap between the dissatisfaction and
satisfaction is 70% - 30% = 40%. That means the dissatisfaction level is 40% more
that satisfaction level. This indicates that the company need more improvement in this
area of business activity.

Online Facility: the total satisfaction of the customers is 70%and dissatisfaction is

30% .the satisfaction gap is 70% - 30% = 40%. It means the satisfaction rate is 40%
more than the dissatisfaction rate. This means the company’s performance is better in
this field. But out of 30% , 10% are very dissatisfied and 20%are somewhat
dissatisfied. The company must find the reasons for such a dissatisfaction for the total
success.

Price Level: here the total satisfaction level is 40% and the total dissatisfaction is
60% . Therefore the gap rate is 60% - 40% = 20%.. This means the dissatisfaction
rate is 20% more than satisfaction level.

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Analysis and Interpretation of Questionnaire no.2

(for specific purpose)

Observing and studying the questionnaire No.2 the data

collected from it is processed into the following
tabulation and graph form.

Figure- 2.1

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INFERENCE:

From the above table, out of the 10 respondents, following is the inferences for
different elements;

Colour, texture and smell: the total satisfaction level is 50% and the total
dissatisfaction is 50%. But out of the total rate of dissatisfied customers 40% are
somewhat dissatisfied and 30% somewhat satisfied. And therefore the gap between
the former and the latter is 40% - 30%= 10% . It means that the dissatisfaction rate is
10% more than satisfaction level.

Though the very satisfied customers are 20% who, are totally satisfied and have no
complains regarding this element.

Smooth wall surface: total satisfaction level of the customers is 70% ,therefore 30%
totally dissatisfied . The gap between the two is 70% - 30% = 40%. This means that
the satisfaction level is 40% more than the dissatisfaction level.
This shows 70% of the customers agree that after using Nippon Paints they get a
smooth wall surface.

Figure - 2.2

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INFERENCE:

From the above table , to my analysis, out of the 10 respondents, 10% of the
respondents have experienced Adhesion on their walls after using Nippon Paints.
While the 90% of them have given a positive response, this shows the level of
increased improvement.

Figure: 2.3

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INFERENCE:

From the above table, to my analysis, out of the 10 respondents, 10% of the
respondents have experienced blistering on their walls after using Nippon Paints.
While other 90% of them have no complains for this factor.

Figure- 2.4

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INFERENCE:

From the above table, to my analysis, out of the 10 respondents, 10% of them have
experienced yellowing of the wall after using Nippon Paints.
While 90% of them have given a positive response.
But the company must take find the reasons for such yellowing of the walls.

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Figure- 2.5.1

INFERENCE:

From the above table (2.5) , out of the 10 respondents , 20% and 70% of them are
aware of the Nippon Paints Primers and Decorative paints respectively.
Further 80% and 30% do have much idea regarding the usage of the Nippon Paints
primers and decorative paints respectively.

From the table (2.5.1) , out of the 10 respondents, following is the inference for the
different elements:

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Primers : total satisfaction is 10% and the other 10% are very dissatisfied due to the
inhalation of its strong fumes.

Decorative Paints: total customers aware are 70%.out of which 40% are dissatisfied
customers and total satisfaction is 30%. Therefore the gap that prevails between the
two is 40% - 30% = 10% . This means that the dissatisfaction is 10% more than
satisfaction rate.

Figure: 2.6

INFERENCE:

From the above table , to my analysis, out of the 10 respondents, 30% are not satisfied
and do not find the makeover and decorative ideas provided by the Nippon Paints
useful ,as they feel the Ideas do not work out as is shown in the t.v. commercials.

While 70% of the respondents have provided with positive response.

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Figure: 2.7

INFERENCE:

From the above table , to my analysis , out of the 10 respondents, 60% of the
respondents feel that the t.v. commercials shown by the Nippon Paints are misleading.
As they found problems of colour fadedness, blistering, yellowing of the walls etc..
This may bring them on verge of brand shifting. Hence the company must overcome
this problem as soon as possible.

While other 40% have provided a positive response.

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Figure- 2.8

INFERENCE:

Regarding the Service Sector of the Nippon Paints, to my analysis, out of the 10
respondents,

For Response to Complaints: 60% of the respondents have given do find optimum
satisfaction from this sector of the company, out of which 20% are very dissatisfied,
as they have not received any response to their complaints.
While 40% have given a positive feed back.

After Sales Service: 50% of the respondents have derived optimum satisfaction but
the other half are not satisfied by the after sales services provided by the company.
Out of which 20% are very dissatisfied

Figure 2.9

Attribute Question no. YES NO

Nippon paints Q14 60% 40%

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Preference for Nippon Paints over other paints

INFERENCE:

Form the above table , out of the 10 respondents, 60% of them are giving more
preference to the other paints company like NEROLAC Paints company. As they
have found satisfaction for a longer period of time in terms of paint quality as well as
in price level.

While 40% of the respondents have preferred Nippon Paints over other paints.

Therefore this shows an alarming situation for the company, where the company may
lose their existing customers.

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CHAPTER - V

FINDINGS
AND
RECOMMENDATIONS

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FINDINGS:

The findings from this research shows that the company is working hard to maintain
the quality of its paints as the least number of the customers have some problems
regarding blistering , adhesion or yellowing of the wall. Almost 70% of the
respondents have agreed that after using Nippon Paints they get a smooth wall
surface.
But the certain dissatisfaction still prevails regarding the texture and smell of the
primers. One out of the ten respondents is totally disinclined towards Nippon Paints
the reason found out was the fumes of the primers affecting the health. Another have
experienced cracks in the wall paints and have complained against the durability of
the paints. Such dissatisfied customers have shown positive inclinition towards other
brands such as Nerolac paints.

Regarding the service department of the Nippon Paints. This include, the services
provided by sales representative of which the total satisfaction prevailing is just 30%
and the level of the dissatisfaction is 40%, more as the respondents have reported, the
local dealers and team leaders are care free and do not respond to their complains.

And in the fields of feedback to the complains, 20% more of dissatisfaction is

prevailing than satisfaction. The After Sales Services shows equal levels total
satisfaction and total dissatisfaction but 20% of then show that they are very
dissatisfied.

Incase of Online Facilities the respondents have provided with positive feedback. 40%
rate of satisfaction level is more than the dissatisfaction level. This shows that the
online facilities have upward moving scale.

Regarding the promotional activities, 6:10 is the ratio for dissatisfaction . That means
out of ten respondents undertaken six respondents feel that the commercials are
misleading because according to them they have not got the same effects as shown in
the t.v. commercials. And the other activities such as innovative ideas and makeovers
its satisfactory ratio is 7:10 which shows effective efforts are being taken.

Regarding the price level, 60% of the respondents feel that the prices of the Nippon
Paints are high. Out of which 20% are very dissatisfied as they are reluctant after
comparing the prices with end results.

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Regarding the inclination towards the Nippon paints brands , 6:10 respondents prefer
Nippon Paints over other paints. But still there are four other respondents who are
preferring other paint brands.

The overall satisfaction of the Nippon Paints ltd in general judged by the respondents
and brought down in this report is, 20% more than the overall dissatisfaction.

RECOMMENDATIONS:

 Nippon Paints must improve its service sector. If there are any complaints
regarding the product of the Nippon paints, the line officers must follow up
with calls or emails , if required they must send their workers to repair the
damaged caused due to the company's product.

 There are complaints by the customers regarding the care- free behavior of the
team leaders, resulting in poor customer satisfaction. To avoid this the
management must try to change the behavior of the officers as well as team
leaders. This can be done by bringing Change Management.

 Nippon Paints Co. must re-treat its primers, in its research laboratories to
avoid the inhalation of the harmful fumes and make the products eco-friendly.

 Nippon Paints is one of the best paints , but certain weaknesses still persist,
regarding its colour fadedness, adhesion & smoothness. Therefore to avoid
this the company must have a regular check on its production department and
quality department and every activity related to the development of the
product. They can do this on regular intervals by adopting techniques like
Kaizen technique and Total Quality Management.

 The customers feel that the advertisements are misleading and fraud.
Therefore to remove this negative attitude of the customers the company can
demonstrate how to use a particular product and how to utilize and maintain it
at its maximum level. At last how to obtain an advertisement look.

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BIBLOGRAPHY

Types of Data:

Primary data: Primary data are the data that have been observed or recorded by
researches for the first time to their knowledge. Sources of primary data are the
sampling units chosen. It can be carried through Observation, Experiment, Surveys
and other methods.

Secondary data: Secondary data may be described as those data that have been
complied by some agency other than the user. Secondary sources of data may be of
two types; internal data and external data.

SOURCES
www.coatingworld.com
www.nipponpaintsindia.com
www.scibd.com
www.wikipedia.com
www.slideshare.com

Attached:

Questionnaire no.1
Questionnaire no.2

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QUESTIONNAIRE
NO-1
(for general purpose)

1. What is your overall satisfaction rating with Nippon Paints ltd

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

Please tell us why you feel that way

2. Please rate your level of satisfaction with your sales representative in the following areas.

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

Responsiveness

Professionalism

Understanding my needs

3. Are you satisfied by online facilities provided by Nippon Paints?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

4. Regarding the price level fixed by Nippon Paints did you find it satisfactory?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

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QUESTIONNAIRE

NO-2
(for specific purpose)

1. Are you satisfied by the quality of the Nippon paints in the terms of smell, shine , texture, colour?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

2. Are you satisfied by the smooth wall surface you get after using Nippon paints?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

3. Do you experience paint peeling or poor adhesion ?

YES NO

4. Are you facing problems of blistering?

YES NO

5. Do you experience sags and runs?

YES NO

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6. After using DurafreshNippon Paints do you experience Yellowing of the wall colour ?

YES NO

7. Do you experience microbial growth on the walls after using Nippon Paints?

YES NO

8. Have you used Nippon Paint Primers ?(Nippon Paints Acrylic Wall Putty, Primer ST, Primer WT,
etc)

YES NO

OR

If yes, do you find the Nippon Paints Primers satisfactory?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

9. There are various Decorative Paints for Exterior walls, Interior walls, Metal surfaces, Wood
surfaces. Have you used any of them ?

YES NO

OR

If yes, did you find it satisfactory ?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

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10. Nippon Paints provide expert help in makeovers and decorative ideas. Did you find it useful?

YES NO

11. Do you feel the T.V. commercials ofNippon Paints Company are misleading?

YES NO

12. Nippon Paints ltd provide a separate section for complaints.

Did you ever had a complain for Nippon Paint’s products or its services?

YES NO

OR

If, yes did you find the response given, satisfactory?

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

13. Do you feel satisfied by the after sales services provided by Nippon Paints ,in terms of tips on the
post application and maintenance, invoice, warranty card, etc.

4 3 2 1
Very satisfied somewhat satisfied some what very dissatisfied
dissatisfied

14. Do you thinkNippon Paints are more satisfactory than other paints?

YES NO

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15. Would you like to give any suggestions to the Nippon Paints regarding their product or services?
YES NO

OR

If yes, please write in the given box:

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