carrier final report_akshay borgaonkar pg mc-07.docx

7/24/2019 CARRIER FINAL REPORT_Akshay Borgaonkar PG MC-07.docx

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Summer Internship Report

SERVICE BUSINESS REVENUE GENERATION

Submitted in Fulfllment o the requirements o the

Summer Internship to

Mr.Ronny DCunha

(Manager, Services, Carrier Airconditioning & erigeration!imited"

#n

3rd July, 2015

By

A$sha% orgaon$ar

')M*Mar$eting Communications (+"

Post Graduate Diploma in

Manaement

!J "omaiya #nstitute o$

Manaement "tudies % Resear&h

'a&ulty Guide ( Pro$. )ra*esh )olia

-


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+&no-ledement

.he /or$ presented in this report has been possible due to the support and

guidance o m% mentor, Mr. Ronny DCunha, Senior Manager Services0

I /ould li$e to sincerel% than$ him or his guidance during m% Summer Internship

'ro1ect0

Also I /ould li$e to than$ m% Course Coordinator 'ro0 Isaac 2acob and also m%

acult% uide 'ro0 ra1esh olia

A$sha% orgaon$ar

')M*Mar$eting Communications (+"

3


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DC/+R+#

I, Mr0 A$sha% orgaon$ar, hereb% declare that this pro1ect report is the

record o authentic /or$ carried out b% me during the period rom 4th Ma%

3+-5 to +6rd 2ul% 3+-5 and has not been submitted to an% other

7niversit% or Institute or the a/ard o an% degree 8 diploma etc0

Signature9

:ame o the student9 A$sha% orgaon$ar

oll :o9 ')M*Mar$eting Communications (+"

)ate9

6


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CR#'#C+

.his is to certi% that Mr0 A$sha% orgaon$ar, a student o the 'ost*raduate )iploma in Management, ;2 SIMS, Mumbai, has /or$ed in ourorganiort on the pro1ectconducted under our guidance and supervision0

#rgani


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ale o$ Contents

-0 Industr% 'rofle????????????????????????????????@30 Compan% 'rofle???????????????????????????0????60 'roduct Categor%??????????????????????????????00--40 Carrier Milestones??????????????????????????????00-350 B:I#:MB:.A! S7S.AI:AI!I.D?????????????????????-6@0 Competitors, Carrier(Services"????????????????00???????0-40 usiness Model???????????????????????????????000-50 'orters= Five Forces Model??????????????????????????0-@E0 S#. Anal%sis????????????????????????????????0-E-+0 Service usiness evenue eneration????????????????????03+--0 Annual Maintenance Contracts????????????????????????036

-30 AMC Flo/ Chart????????????????????????????????35-60 AMC snapshot?????????????????????????????????3@-40 'urchase order snapshot???????????????????????????03-50 Complaint lodging and resolving???????????????????????03-@0 Call registration Go/ process?????????????????????????03E-0 )ealers????????????????????????????????????006

+-0 usiness 'roblem and #b1ective???????????????????????06--E0 Solution????????????????????????????????????06

43+0 ;e% esult and ecommendations??????????????????????06@3-0 ibliograph%??????????????????????????????????06

5


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#D4"R PR'#/

.he mar$et o air conditioners in India has been on a stead% gro/th ever since, apart

rom certain eHceptions0 .he perception o people to/ards the categor% o this product

has /itnessed a paradigm shit over the %ears rom a luHur% product to becoming a

necessit% in hot humid /eather conditions o India0 Increasing demand b% the residential

sector o/ing to reduction in prices has instigated the manuacturers to aim or a higher

mar$et share in the highl% potential mar$et o air conditioners in India0 .he demand rom

the commercial segment is catching up ast /ith the increasing number o commercial

oces, stores and business apartments being set up, as compared to the demand rom

the residential segment0 Air conditioner /as once considered as a mar$ o luHur% and

onl% upper socio*economic categor% household /ere able to a>ord it0 According a Buro*

monitor article disposable income o Indian households are increasing but the air*conditioning industr% is increasing at even higher rate0

According to JIndia Air Conditioner Mar$et Forecast & #pportunities, 3+-K the air

conditioner mar$et is poised or greater gro/th over neHt fve %ears0 India air conditioner

mar$et is orecasted to gro/ at a CA o -60@L or the neHt fve %ears0 Increasing

disposable income, rising /eather temperature, alling prices o air conditioners coupled

/ith the latest technological innovations increasing the cooling ecienc% and the

increasing commerciali


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'enetration rate o ACs are ver% poor in Indian household /hich is less that 4L0 Main

reasons behind lo/ penetration rate are lo/ income and load*shading in smaller cities

and rural areas0 ACs have reached ver% small numbers o households in small cities and

to/ns on the other side rural mar$et is totall% untapped and it /ould ta$e quite a time to

penetrate in rural mar$et0

.he Indian air conditioning mar$et is divided into t/o ma1or segments9 commercial air

conditioners (F, Chillers & #thers" and oom Air Conditioners (Split and indo/ air

conditioners", among /hich, residential air conditioners segment /itnessed a higher

revenue share in 3+-40 .his domination o room air conditioners segment is eHpected to

continue over the neHt fve %ears0 Currentl%, the mar$et or air conditioners in India is

dominated b% oltas, ollo/ed b% !, )ai$in and Samsung0

China is dominating the Indian air conditioner mar$et, surpassing the indigenousmanuacturers /ho ail to get into mass production0 % and large Indian

manuacturers are not more than 3+ percent o the total mar$et or heating,

ventilation, air*conditioning and rerigeration0 est o the + percent is

dominated b% the units imported rom China0 .he unitar% products in the Indian

air*conditioner mar$et is close to s0-+,+++ crore0 China produces in bul$ or

/hich good manuacturing acilit% is required and is hence less eHpensive0

!ey6Prominent 7endors

lue Star

)ai$in odre1

!

'anasonic

Samsung

oltas

Carrier

!lo%d

B.A

aier

itachi

IF

Mitsubishi Blectric

#nida

Sharp

.oshiba

ideocon

'or this industry(

!ey Maret Dri8er * Increasing )emand or Bnerg% Bcient AC!ey Maret Challene * Intense Competition!ey Maret rend * Increased 7se o reen .echnolog%

!ey "ales 'a&tors 9 ising per capita income, climatic conditions and consumerliest%le


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PRD4C C+GR#"(

indo/ AC Slimpa$

Cassette igh /all)ucted 'ac$aged 7nit)igital Scroll F

CMP+ PR'#/

Carrieris a part o 4nited e&hnoloies Corporation, 7SA0 ith 3++ revenue o

N50 billion, 7.C is a conglomerate operating in the high technolog% space0 .he 7.C

group operates in aerospace & building s%stems /ith companies li$e Carrier (air*

conditioning", tis (Blevators", Pratt % :hitney(2et* engines" and man% more0

Founded in -E-5 b% )r0illis Carrier, the inventor o modern air*conditioning, Carrier has

developed into being the /orld=s largest provider o air*conditioning, heating andcommercial rerigeration s%stems (AC" /ith operations in more than -+ countries,

emplo%ing approHimatel% 4-,+++ people /orld/ide and revenues o ;1


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JAt Carrier, our mission is to be the frst choice or heating, air*conditioning and

rerigeration solutions /orld/ide0 e /or$ ever% da% to ma$e the /orld a better place to

live, /or$ and pla%0 #ur emplo%ees, products and services create comortable, productive

and health% environments, regardless o climate, and ensure the global ood suppl% is

transported and preserved or sae consumption0K

J#ur culture is rooted in the core values o 7.C uilding & Industrial S%stems0 .hese

values are the pillars o our business0 .he% defne /ho /e are and guide ever% decision

/e ma$e0K

Carrierstarted its operations in India /ith setting up o companies namel% Carrier Aircon

!imited in -E@, and Carrier erigeration 'rivate !imited in -EE30 Carrier brought to the

Indian consumer, access to advanced technolog% and air*conditioning and rerigeration

products rom the /orld/ide product portolio o Carrier0 In #ctober, 3++@, Carrier Aircon

merged /ith Carrier erigeration and the name o the merged entit% /as changed

to >Carrier +ir&onditionin % Re$rieration /imited? @Carrier #ndiaA0

Carrier IndiaOs manuacturing acilit% at urgaon produces air conditioning

equipments including indo/ oom Air conditioners, i* all Splits, Slimpa$ Splits,Cassette Splits, )ucted Splits and Chillers0 It also manuactures erigeration Bquipments

including Cold chain equipment comprising o Cold ooms, .ruc$ erigeration & us Air*

conditioning s%stem, Free


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advanced technolog%0 .oshiba Air Conditioning has state o the art manuacturing

acilities in 2apan, .hailand and China0 For the #ndian maret, the products are ull%

imported and sourced rom the actories in 2apan and .hailand0 So Carrier loo$s ater the

sales and distribution o .oshiba products in India0

hen it comes to competition aced b% Carrier Aircon, Indian AC mar$et is alread%

Gooded /ith pla%ers li$e oltas, !, )ai$in, itachi, aier, Samsung, ideocon and

others0 Carrier is doing /ell in terms o commercial usages but still has to go a long /a%

or residential mar$et or /hich Carrier Midea is there0

)4"#"""(

Carrier serves three mar$ets9

esidential and light commercial9 homes and small acilities0 .he% suppl%

urnaces, central air conditioners, heat pumps, air flters, /indo/ units, split

s%stems and other home comort solutions0

Commercial building9 industrial and multi*level acilities0 .he% suppl% chillers,

large unitar%, airside s%stems and controls that provide comort and enhance

ecienc% in buildings around the /orld0

erigeration s%stems or ood retail and transportation9 .he% provide applications

to ensure ood supplies are transported and stored or sae consumption0

Carrier Airconditioning & erigeration !td (CA!" is the name /ith /hich it operates in

India0It has more than ++ emplo%ees0 Facilities includes Factor%, Carrier o/ned .otaline

outlets, Sales and service oces0

'a&tory

Carrier has one manuacturing acilit% in India, Carrier Airconditioning and erigeration

(Carrier India", /hich produces air conditioning and rerigeration equipment or the

domestic mar$et0 'roducts manuactured at Carrier India include /indo/ room air

conditioners, duct ree splits, chillers, airside s%stems, ree


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ype o$ Produ&ts sold in #ndia

.he products are divided into 4 t%pes9

-0 esidential9 includes /indo/ ac, igh /all, )ucted, Slimpa$, Cassette30 Commercial9 Air Cooled Chiller, ater Cooled Chiller, Absorption Chiller,

Airside 'roducts, Controls60 erigeration9 Free


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oom air conditioners

30 )ucted 8 'ac$age S%stems

60 Chillers (Air 8 ater cooled"

-3


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40 F air conditioning s%stems

50 'recision & .elecommunication

@0 ail Coach Air Conditioning

0 erigeration

C+RR#R #D#+ M#/""-E@ Carrier Aircon !td0 Bstablished

-E urgaon actor% commissioned

-E First product9 ermetic compressor

-EE3 Carrier .ransicold 'vt0 !td0 Bstablished

-EE Carrier erigeration actor% in angalore commissioned

3++3 .oshiba Carrier, a 1oint venture bet/een Carrier and .oshiba=s air conditioning

business group, started its operations in India

-6


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3++6 First eHport order9 everage Air

3++4 Q- in Air conditioners in consumer satisaction surve%

3++@ Carrier Aircon !td0 merged /ith Carrier erigeration 'vt0 !td0 to become Carrier

Air conditioning & erigeration !td

3++@ Formed the illis Carrier )ealer Club

3++ :ational Bnerg% Conservation A/ard 3++9 -st 'ri


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Carrier is the onl% compan% in the /orld to be a ounding member o the 70S0,

India, Singapore and China reen uilding Councils0

Carrier pioneered a /orld/ide CFC phase*out in -EE40

CMP#R"

itachi, eneral, oltas, lue Star, !, #nida, aier, Samsung are the main competitorso CA!0

C+RR#R +#RCD###G +D R'R#GR+# /#M#D @C+R/A +" +

"R7#C PR7#DR

.he compan% no/ not onl% depends upon the sale o machines or its revenue but also

depends on revenue generated b% providing services to the customers0 A service can be

an%thing that compan% can provide /hich is intangible in nature0 .here are various

categories o Service MiH0 .he Carrier can be considered in the categor% o J.angiblegood /ith accompan%ing serviceK0 It is because Carrier gives machines as tangible goods

and arrant% & AMC Services as Services0 As Carrier is entering more technologicall%

advanced product, the need or high qualit% supporting services also increases0 It is also

providing maintenance services to machines o other brand also0

Services are generall% high in eHperience and credence qualities thereore there is more

ris$ in purchase0 Service Consumers rel% more on /ord o mouth publicit% than

advertising0 Consumers rel% on price and provider to 1udge qualit%0 Consumers are lo%al

to service providers /ho satis% them0 Since s/itching cost is high or customers so it is

dicult to get customers rom competitors0 Customers are more a/are about product*

support services and desire or separate prices o each service element and the right to

select the elements that the% /ant0 Customers can no/ share their eHperience on

/ebsites li$e 'lanetFeedbac$0com and Mouthshut0com0

Some characteristics o services are9

Intangibles should be able to provide some concrete benefts and a /ell defned

eHperience

Services are produced and consumed simultaneousl%

Service*perormance process should be standardi


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Employees Customers

Interati!e

MarketingIn ConteHt o Carrier9BHternal Mar$eting9 iving Customers the best AMC o>er

Internal Mar$eting9 .raining and motivating emplo%ees to serve customers /ell

Interactive Mar$eting9 .echnicians behaviour and s$ill

Companies also are increasing the qualit% o their call centres and their customer care

representatives0

Carrier includes /arrant% and AMC (Annual Maintenance Contract" as part o its services0

.he costs o machines include the charges or arrant% Services0 Ater arrant% 'eriod isover AMC is o>ered to the customers0

BUSINESS MODEL:

Authorized Channel Partners

Types o" #eals$

#iret Sales Institutions%I&enti"ie&'

#ealer Sales Customer #MS%I&enti"ie&'

Non(

#MS%Uni&enti"ie&'

Contrators%I&enti"ie&'

#ealers%I&enti"ie&'

National Aount %Alrea&y Tappe&'

-@

MSS)(Multi*

rand Sales

and Service

CC)(illis

Carrier Club

)ealership"

BSS)(BHclusiv

e Sales and

Service


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Outstation %Nee& not &o it'

PRR" '#7 'RC" MD/ @:R C+R/A

'orter=s Five Forces Model9'orter fve orces anal%sis is a rame/or$ to anal%se level o

competition /ithin an industr% and business strateg%development0 'orterOs fve orces

include * three orces rom Ohoriect o ne/ entrants on the compan% or

ho/ much o a threat ne/ entrant ma% pose to compan%0

.hreat o substitutes9 It ta$es into account threat o substitutes on the compan%0

argaining 'o/er o u%ers9 .he abilit% o customers to put the frmunder

pressure0

argaining 'o/er o Suppliers9 Suppliers o ra/ materials, components, labor, and

services (such as eHpertise" to the frmcan be a source o po/er over the frm

/hen there are e/ substitutes0

ivalr% among eHisting frms9 For most industries the intensit% o competitive

rivalr% is the ma1or determinant o the competitiveness o the industr%0ased on the fgure sho/n /e can anal%se the position o CA! in industr%0 It

/ould be anal%sed based on fve orces0 igh or !o/ is /ritten based on intensit%

o threat it poses to CA!0

-
https://en.wikipedia.org/wiki/Business_strategyhttps://en.wikipedia.org/wiki/Firmhttps://en.wikipedia.org/wiki/Firmhttps://en.wikipedia.org/wiki/Business_strategyhttps://en.wikipedia.org/wiki/Firmhttps://en.wikipedia.org/wiki/Firm


18/38

-

.hreat o :e/

Bntrants

Bconomies o

Scale*!o/

S/itching Cost

to u%ers*igh

)istribution

Channels* lo/

Supplier 'o/er

Concentration*

igh

.hreat o For/ard

and bac$/ardIntegration*igh

Importance*igh

u%er 'o/er

:o0 # u%ers*

!o/

7se o Multiple

Sources*igh

Importance*!o/

ivalr% among eHisting

Firms

:o0 o

Competitors* igh

Industr% ro/thate*medium

Strategic Sta$es*

igh

.hreat o Substitutes

'rice*igh

Tualit%*igh

S/itching Cost*

igh


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.hreat o ne/ entrant9 Since it is dicult to enter or ne/ businesses and to

achieve economies o scale thereore threat is lo/0 Also distribution channel /ill

ta$e time and mone% to develop, so threat is lo/0 S/itching Cost or ne/ entrants

/ould not be more thereore threat is high0 #verall, threat o ne/ entrant is lo/0

.hreat o substitutes9 .here can be substitutes li$e better qualit% ecirculatingCoolers, rerigerated circulators, evaporative air coolers (s%mphon%", etc0 .he% are

less eHpensive than air conditioner thereore threat is high0 S/itching Cost is less

thereore threat is high0 #verall threat is high0

argaining 'o/er o u%ers9 .he customers have lo/ bargaining po/er as the%

bu% products in small quantit%0 .hereore threat is lo/0

argaining 'o/er o Suppliers9 .he suppliers here mainl% are dealers, ranchise,

etc0 .he% can go or bac$/ard as /ell as or/ard integration and have high

importance0 .hereore threat is high0

ivalr% among eHisting frms9 .here are a number o competitors0 .he gro/th rate

is around -6*-5 L thereore it is good or industr%0 Strateg% ollo/ed b% compan%

pla%s an important role or compan%0 .he competition is intense0

.hereore, the industr% is quite competitive /ith alread% eHisting pla%ers0 .hereore,

Carrier has to ma$e e>orts to sustain in the mar$et0

SO! ANAL"SIS

-E


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3+

STRENG*TS

In"rastruture

#istri+ution C)annel

Vast Experiene

Manpo,er

-EA.NESSES

Co(or&ination

+et,een Carrier an&

#ealers

/re0uent stok out o"

spare parts

T*REATS

Competition "rom

ot)er ompanies

Ne, 1ro&ut

Te)nologies

#issatis"ie& ustomer

Emerging greener

Te)nologies

O11ORTUNITIES

Gro,ing air(

on&itioning setor

Approa)ing lost

ustomers

Contating unsatis"ie&

ustomers o"

ompetitors2


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"4MMR PRJC "R7#C )4"#"" R74GR+#

.he process b% /hich a compan% mar$ets and sells a product or service to produce

income is reerred to as revenue generation0 .he pro1ect is based on the business that isrelated to services that is ater the product is alread% sold and then is all about ho/ is the

eHperience the customer is getting0

.his share o revenue that comes rom ater sales services in terms o /arrant%, annual

maintenance contracts and customer delight and ma$es a ver% signifcant share in the

total sales and revenue /hich no/ companies have realiective ater sales

service to consumers0 It is no/ada%s used as the cutting edge mar$eting tactic in

pushing the products= sale across a broad categor% o a consumer durables industr%0

:o/ada%s, a product=s problem can be resolved rom its authorised service centre /hich

o>ers repair related services to its target customers and corporate clientele as /ell0 .he

$e% to generate maHimum ootalls is surel% the good ater sale customer service0 From

/rist /atches to cell phones, imaging products to printers or /hite goods (such as

rerigerators, /ashing machines, air conditioners" and automobiles, there is a huge

demand b% customers or ater sale services /hich needs to be targeted b% the various

organised brands and ranchisors so as to trigger more profts and create brand=s value in

customer=s mindset0 .his in turn is also o>ering ample business opportunities to /annabe

ranchisees0

.he ate o a consumer durable brand relies mainl% on product portolio and an ater

sales service it o>ers to the target customers0 hen it comes to a consumer durables

sector, ater sales service pla%s a signifcant role in propelling more customer ootalls so

as to target more profts simultaneousl%0

!oo$ing at the statistics, ater sales services mar$et is evolving inch b% inch and most o

the share o mar$et lies in the unorganised mar$et as lot o local dealers and

neighbourhood pla%ers are providing services o multiple brands at a>ordable prices0

Also, the use o non*branded spare parts is on the constant increase, /hich is someho/

creating a big challenge or organised brands to $eep their brand=s lo%alt% intact0 So as to

o>er best o opportunities to customers, brands are setting up their authorised service

centres in ever% corner o countr% so as to o>er best o services0 .his involves a 34P

support through e*portals and customers can also visit the certifed compan%=s service

centre so as to avail in /arrant% and out o /arrant% related services0

'ran&hise $or more returns

Franchising in the ater sales service sector has been able to present a easible business

choice to prospective ranchisees0 .he brands that have charted maHimum share o

mar$et b% doubling their store count via ranchising are U Canon India, hirlpool o India,

;ent o S%stems 'vt !td, Bure$a Forbes, .itan atches, Mahindra First Choice Services,

the multi*brand car service division o Mahindra roup, CBA. !td, the frst t%re

3-


22/38

manuacturer in India to introduce a ranchise model or t%re retail and service and Club

!aptop, the frst*o*its $ind brand in laptop repair0 Ater sales services industr% is not onl%

o>ering business opportunities to man% entrepreneurs or ranchisees /ho are interested

in services sector but, it is simultaneousl% o>ering emplo%ment opportunities to li$e*

minded individuals as /ell0

Franchisees have the opportunit% to earn rom /arrant% costs that are borne b%the compan% or attending calls or products under /arrant%0

Income rom repairing stoc$s /ith dealers, usuall% small repairs due to transit

damages, is another source o income0

.he% also earn through servicing out*o*/arrant% products through chargeable

calls and sale o spare parts and annual maintenance contracts0

Bver% compan% has a /ide range o unique consumables and accessories that are

sold eHclusivel% through the service channel to provide a unique revenue

opportunit% or ranchisees.

Ater sale mar$et is roughl% pegged at s -++ crore0 As ar retail o lenses and

accessories is concerned, ranchisees are able to sell but not as per the industr%sier ater sale services to consumers0 For instance,

Canon basicall% has our ranchise service agents or cameras and 63 printer

ranchisees0 So in total, Canon has 6@ ranchisees spread across 63 to/ns0 Canon has

put up a ver% robust inrastructure or sales and service training programmes or its

ranchisees and their sale service people0 #n an eHpansion ront, Canon loo$s ahead to

add more cities in its portolio or eHpansion o its service centre ranchisee0

rainin at its estFor running a service centre ranchise, hands*on training related to product portolio o a

brand pla%s a signifcant role in bringing more customer ootalls and preserving a

brand=s value in the end consumer mind set0 So it=s important that a service centre o

ranchise brand o>ered an eHtensive training and support to ranchisee=s sta> so that

the% are able to fH up ever% customer quer%0

So ar, hirlpool o India o>ers technical training to its service engineers at t/o levels0 In

addition, hirlpool training academ%, a modern training acilit% established solel% to

augment technical, communication and relationship s$ills, is a venue /here a higher

level training is imparted and /hich is operational throughout the %ear0 All training costs

are borne b% the compan%0

Canon India ranchisee=s service engineers are regularl% trained and are givencertifcation at technical centre /hich is located in :oida0 In case o ;ent o, A*V

solutions are o>ered to ranchisees /ith agents to repair and providing the best o the

services0

Main a -ay $rom roadlo&s

In ever% business segment, challenges var% rom brand to brand and sector to sector0

elated to services sector, the ma1or hurdles have been about fnding the ideal partner

or business /ho share the same vision, have capabilit% to invest and


23/38

or earl% returns on investment and integrit% issues /ith some ranchisees0 .o ensure that

business runs smoothl%, developing talent and creating opportunities or eHceptional

talent is essential0 .he brand encourages eHperienced service personnel to become

entrepreneurs b% setting them up as service ranchisees0 .he% are educated on the

service as /ell as the revenue side o the ranchisee business, lin$ing the adage that

good service can actuall% create great opportunit% or revenue0 hirlpool .rainingAcadem% provides the right platorm or service engineers to get trained and understand

hirlpool values0 In case o a breach o ethics, hirlpool=s central audit team imposes

heav% penalties on deaulters0

Similarl% or ;B:. # SDS.BMS !.), one o the toughest challenges or an% ne/ pla%er is

to educate and convince people about the importance o an # purifers and technolog%0

.he% spend -5 per cent o revenues in mar$eting0 Another challenge or an% ne/ pla%er

is the ater sales service so a quic$ turnaround time is a $e% actor a s$illed manpo/er

/hich is available 34H or the customers0

For ater sale service ranchisee, the biggest challenge is the quantum o business

coming to them0 Most o the times, the customer does not come or ater /arrant% repair0

)uring /arrant%, all customers /ill come to service centres0 So, /e as$ ranchisee to

provide a large number o service sta> related to service, /arrant% or repair0 .he main

margin comes rom out o /arrant% repair so not all customers go to the compan%=s

centre0 So /e continue to /rite to customers and encourage them to come to compan%=s

centre or repair0 Sometimes, /e o>er service through our ree service camps so that

customers can come and avail repair or ree or at discounted rates0 For overcoming da%*

to*da% hiccups, Canon ensures to fght /ith challenge o profts b% providing its

ranchisees some subsid% o service eHpense during /arrant% so that their normal

eHpense is covered and ensure that the% do not ma$e loss0 .he compan% helps inmanaging the inventor% o spare parts b% providing its ranchisees a complete anal%sis o

spare part consumption around the countr% and suggests them to $eep estimated

number o spare parts0

:o/, at Carrier India as mentioned above ater sales services is o>ered and hence

revenue is generated through /arrant% period, eHtended /arrant% period, Annual

Maintenance Contracts and addressing other grievances o customers or machines

/hich can be either perormance or spare part related or Carrier and .oshiba appliances0

:arranty Period( a /ritten guarantee, issued to the purchaser o an article b% its

manuacturer, promising to repair or replace it i necessar% /ithin a specifed period o

time0

So or AC mar$et one %ear is the /arrant% period /hich is eHtended to siH months or an

%ear sometimes due to di>erent valid reasons0 In this period services provided to the

customers are ree and an% problem or improper unctioning o spare parts is catered b%

replacing it or repairing it0

It is this period in /hich a compan% can provide service delight and gain customer

satisaction and hence trust0 I carrier perorms in this period properl% then or sure its

chances to get the maintenance contract rom the same client is sure and is true

ever%/here0 Blse the contract goes to some local dealer /ho or sure proposes lo/erprices and hence the customer gets lured0 ence this is the best capitali


24/38

.he /arrant% given b% CA! covers9

Functional )eect on Arrival9 7nits shall be covered under )#A up to E+ da%s o

Carrier Invoice or -5 da%s rom date o installation /hichever is earlier0 )#A reers

to )ead #n Arrival

Standard arrant% 'eriod9 It is -3 months rom date o installation or -5 months

rom date o invoice0

#bligations b% CA! or product under /arrant%9

.o provide 6 'reventive Maintenance services or the machine0

.o attend to an% brea$*do/n calls received rom customer, trouble shooting,

maintaining the machine in good /or$ing condition0

.o provide ree replacement o spare parts and rerigerant charging to customers0

+nnual Maintenan&e Contra&t(

In short +MCis a service provided b% companies to customers at a cost that helps $eep

their products in proper /or$ing condition ater ree product services o>ered b% the

compan% are completed0 Annual maintenance contract signed bet/een a customer and

product manuacturer8 service centre allo/s regular chec$*ups and routine /or$ to $eep

the perormance and qualit% o the products in good condition ever% %ear0 AMC is annual

maintenance contract that is o>ered ater the machine is out o /arrant%0 It is 1ust an

eHtension to /arrant% /ith a %earl% charge0 Carrier has been o>ering AMC to its

customers beore eHpir% o arrant%0 AMC sales come under ater mar$et

.%pes o Annual Maintenance Contract (AMC "9)epending upon the product

companies8service centres o>er di>erent t%pes o AMC contracts, regular product

usage requirement and the stress it undergoes orms the base or choosing the plan0

Comprehensive8!abour Annual maintenance Contract

!abour onl% Annual Maintenance Contract0

!abour W Spare 'arts to a fHed amount0

AMC /ith ubber & 'lastic 'arts 8 AMC /ithout ubber & 'lastic 'arts0

Advantages o egistering or an AMC(

Saves rom uneHpected epairs and avoids cost or these repairs0

ound the Cloc$ Service rom Tualifed .echnicians0

'lanned Services or %our 'roducts0

enuine Spare 'arts or high reliabilit%0

o/ to egister or Annual Maintenance Contract (AMC":

enerall% ever% product is provided /ith the /arrant% or fHed period o time ater the

product is purchased0 henever /arrant% or the product eHpires, customers should call

the Customer Care :umber o the compan%, in order to bu% AMC or their products or

some more %ears /hich are charged b% the compan% based on the t%pe o AMC %ou

select to bu% rom them0

34


25/38

eore calling the customer care, it is important to $no/ the rules and regulations or

accepting the AMC0 eneral terms and conditions given belo/:

-0 Acceptance o AMC depends on condition o the Machine )uration and generall%

the agreement /ill be one %ear rom the date o receiving the product and this is

done i the product does not have /arrant% rom the compan%0

30 eore accepting the contract, the customers are eHpected to chec$ the product is

in good condition0

60 I the product /hich is covered under the plan ma% brea$ do/n and in such cases

the customer service people /ill be available or servicing or replacing the product

at an eHtra cost0

40 .he agreement /ill be terminated in case o change o o/nership or location o

the machine0

50 #ne month advance notice is given or the termination o the agreement b% the

compan% and the customers have to reund or the eHpired agreement0

@0 Mode o AMC pa%ment can be Cheque or )) or an% other source0o- +MC oEer is i8en to &ustomers9 It is given through the same service dealer

/ho /as maintaining that particular machine0 ealth Chec$ up is done beore o>ering

the AMC0 It is given9

45 da%s prior to their /arrant% eHpir% date

45 da%s prior to their AMC eHpir% date

ype o$ +MC Contra&ts(

S'IS Contract9 .he scope o /or$ includes9

-0 Attending to an% number o brea$ do/n calls during normal /or$ing hours on all/or$ing da%s, sub1ect to complaint lodged b% end user /ith CA! call center or/ith CA! authori


26/38

/ith brea$do/n call and CA!Os representative /ill prepare the common servicereport0

40 erigerant gas charging or topping up during lea$age repairing, repair orreplacement o all electrical or mechanical running part ound deectivedue to normal /ear & tear onl%0

S'MS*C9 It is same as S'MS contract eHcept that compressor is not included in theAMC0

ype o$ Customers to -hom +MC is to e Eered

AMC ene/al9 Customers /ho are alread% under AMC

arrant% 'eriod etting #ver9 Customers /hose arrant% is BHpiring

#ther rands9 ho are not into AMC but still AMC is o>ered so that the% can

become customers0

Ater giving the AMC o>er the status o customer is saved as belo/9

"tatus

#>er 'ending

#>er Accepted

.here are some reasons due to /hich customers are not able to accept the AMC o>er0

AMC #lo$ Chart:

o

es

3@

AMC #FFB

given to

:egotiations

AMC #FFB

ACCB'.B))

Another eligiblecustomer is

contacted

'urchase #rder

is received b%


27/38

+MC Eer (snapshot"

3

Contract is

made and sent

to Customer

'a%ment is done

b% Customer

I:#ICB IS

B:BA.B)


28/38

#nce the #>er is made to customer, he gives purchase order0 Ater purchase order ('#"

is received the invoice is generated b% the Commercial )epartment

Pur&hase rder (Snapshot"

3


29/38

o/ to log the Complaint9

-0 Call is received8mail is received0

30 For frst time callers, their details are as$ed or registration0 .hen, a registrationnumber is generated0

60 .hrough registration number or phone number customer is identifed and all the

details o the customers are displa%ed on )MS s%stem /hich can be verifed040 .hen, according to nature o complaint the details are flled050 Service )ealer is identifed0 I could not be identifed then ranch #ce I) is

flled0@0 .hen, the call is logged and a complaint number is generated /hich is given to

the customer0

o/ the action is ta$en to resolve the Complaint9

-0 .he Service )ealer gets the contact o customer and nature o Complaint030 .he service )ealer has to resolve it in 4 hours060 At the same time customer care eHecutive o Carrier gives outbound call to dealer

and gets status o the complaint0 .he technician resolves the complaint and

generates the FS /hich also haves the eedbac$ o the customer040 I Complaint is resolved the status is Close else it is #pen in FS050 At the same time dealer has to close the Complaint in the )MS ()ealer

Management S%stem"0

3E


30/38

Call Re%istration Pro&ess #lo$:

3es

NO42

52

NO

s&alation MatriF

!evel*-9 )ealer(+*- da%s"

!evel*39 ranch C#(-*3 da%s"

!evel*69 SM ranch Service(X3 da%s"

!evel*49 SM(6*4 da%s"

!evel*59:ational eads(4*5 da%s"

!evel*@9 ead (Y5 da%s"

6+

C7S.#MB

CA!!BCIBB)

Is First .ime

Caller egisterati

on 'rocess

Customer

IdentifedC#M'!

AI:.

:#0 Service )ealer;no/n ranch

#ce I)

Service

)ealer I)

Call

!ogged(C


31/38

Customer 'eeda& @Maret 'eeda& +nalysis @M'+AA(

All the complaints /hich are closed are ta$en0 .hen, a set o calls around -++*-3+ are

chosen or eedbac$ purposes0

ransa&tional 'eeda&9 Feedbac$ or the particular complaint0

Tuestions as$ed9

-0 I %our complaint is resolvedZ

30 Are %ou satisfed /ith level o serviceZ

A rating is as$ed on a Upoint !i$ert Scale /here 4 is neutral0 Above 4 is good and belo/

4 is bad0 For customers /ho give average rating less than equal to 4 are selected or

:on*.ransactional Feedbac$0

on 9ransa&tional 'eeda&(

.here is a set o -5*-@ question /hich are also on *point !i$ert Scale0 .he average

rating is ta$en and dissatisfed customers are identifed(those /hose average rating is

less than equal to 4"0

.here are some changes required in questionnaire9

-0 Tuestionnaire should have less no0 o questions0

30 Tuestions pertaining to installation can be omitted0

60 Some questions can be merged0

D+/R"

)ealers pla% an important part in sales as /ell service o the machines0 Carrier does

most o its sales through dealers onl%0 .he dealers have their o/n sales and service

teams0 )ealers have their o/n technicians /ho are responsible or giving /arrant% and

AMC services to customers0 .he% are also $no/n as Authori


32/38

.he chronic business problem that Carrier is acing especiall% in Mumbai is )ealer

management0 henever an AMC is signed /ith a customer bet/een the dealer,

customer and compan%, the revenue has to be shared bet/een the dealer and the

compan% on revenue sharing model U 5L*35L respectivel%0 .he sharing ratio varies

/hen it comes to .oshiba ()igital Inverter, r units" it is 4+L*@+L respectivel%0 .he

chronic problem is that the dealer is not sharing the contract inormation o the end user/ith the compan%0 )ealers are getting the AMC rene/al themselves /ithout sharing the

details /ith the compan% and hence the compan% is losing out on the revenue /hich

ma$es an important share all together0 Attitude o dealers that once use to be pro*

compan% is no/ against and no/ have the idea that compan% has got no role to pla%

ater /arrant% period0 eason is being understood as ro%alt% or commission issues but in

a nutshell /ith regard to compan% )BA!BS are no/ being considered as J 7navoidable

)evilsK 0

#2BC.IB9.o manage dealers so as to grab the share o revenue, get annualmaintenance contracts rom end users directl% and recover outstanding and bad debts0

.he frst thing to fgure out is to $no/ the reason or such an attitude and behaviour o

dealers0 So, the instrumental reasons behind such attitude are9

-0 o%alt% issues* .he dealer /ants to establish himsel as a recognised brand in the

mar$et and hence needs visibilit% or /hich it needs to sho/case its o/n /or$0

ence ro%alt% is one o the reasons030 Commission8margin issues* .he dealer or a particular contract t%pe is not getting

adequate share or is not happ% /ith the share /ith regard to the quantum o /or$

allocated0 ence or an improved share the dealer tries to go through the unair

means060 .he rates8prices o AMC as o>ered b% the compan% are quite high /hich

customers actuall% rerain to pa%0 hether it be S'IS or S'MS the rates arecomparativel% ver% high0 So, the dealers /ho are actuall% the service providers

lo/er the rates acceptable to the customers and ta$e the share completel%

/ithout inorming the compan%040 Carrier has outsourced its services ater sales /ing and relies on dealers

completel%0 So even the dealers $no/ there importance and the compulsion that

carrier has to ace0 .he% can actuall% blac$mail them050 Also the service provision o Carrier as the customers= eedbac$ is not satisactor%

so the dealers have got another reason to do/nturn them and respect the

agreement to share the revenue0 ence then even dealers provide service at their

o/n disposal not being serious about the qualit% and thus a>ecting the image o

the compan%0

@0 .he dealers are earless0 .he% have an understanding that even though a matteris escalated $no/ strong penali


33/38

Also, the reasons or not accepting the AMCs are9

'rices are relativel% ver% high0

#/n .eam9 .he customer has his o/n team /ho can maintain and provide

services to the machines Contract given to some other compan%9 .he% got some better o>er rom some

other compan% so the% gave contract to them0

Shortage o Fund9 Customer is having shortage o und to pa% the annual

maintenance charges0

ased on equirement Service (Call asis"9 Customers does not need AMC instead

he is happ% /ith pa%ing isit Charges0

Customer /as not approached9 .he easons customer /as not approached

because o t/o reasons9-0 !ac$ o Focus9 .he dealer or the CA! representative missed the particular

customer=s data0

30 !ac$ o .ime9 )ue to lac$ o time, all the customers /ere not o>ered the AMCon time0

AMC is stressed because that is the sole /a% to get the revenue frstl% and secondl% to

ma$e sure that customers are being satisfed /ith the service qualit%0 .he service delight

/hich all service providers should aim or is through this0

ecover% o #utstanding9

ecover% o outstanding8 bad debts is a part o this process o service deliver%0 henever

an AMC is signed the end user has to ma$e the pa%ment in advance, or b% mutualconsent partial in advance and remaining later0

.he end user rerains rom pa%ing amount due to ollo/ing reasons9

7nsatisactor% service rom the dealer and hence the compan%

Services committed not provided at all

Consumers ma% have issues /ith the dealers and hence does not ma$e pa%ment

and thus nothing comes to the compan%0

Bnd users ma$e the pa%ments to the dealers, but the dealer does not share

an%thing neither the revenue nor the inormation about it /ith the compan%0

ence the compan% gets an insight or this as /ell0

.his process is important so as to get bac$ the revenue /hich actuall% belongs tothe compan%0

.he #ther Forms o 'roblem

henever the matter o not abiding the contract and agreement on the part o dealer is

escalated b% the respective emplo%ee, it happens onl% /hen the matter is not getting

sorted at the local level, the attitude o the dealer is not changing nor there is an%

improvement seen in the /or$ing methodolog% o the dealer0 Bven ater repeated

reminders and threats i the dealer is still b%passing the compan%, the matter is

escalated to the senior management0

ere the issue gets sometimes complicated because then the sales fgures and the

service fgures are compared and i the dealer is doing prett% /ell on sales part, and also

66


34/38

then considering the relationship o the dealer /ith the compan%, the matter becomes

stagnant0

Apart rom tr%ing to solve the issue mutuall% at that level also and giving /arnings, no

strict penalierent parts o the cit% so as

to $no/ that /h% the end users are preerring local dealers over the compan%, the issues

that the% are acing, that /hether the% are getting there AMC rene/ed rom the compan%or not, i not convince them and help them understand the per$s and benefts as /ell

comprehend the Ga/s on the compan%=s side0

-0 et the Client list rom the oce or a particular dealer li$e S' Sanghvi030 o and have a meeting /ith the client and note do/n the insights given b% him as

per our questions060 Tuestions as$ed our li$e

ho is %our dealer and /hen did %ou bu% the machineZ

Is %our product under /arrant%8AMCZ

I in AMC, /ho has the current AMC* Compan%, authori


35/38

AMC database maintenance or eHisting and to grab those not /ith the

compan% currentl%0

aving meeting fHed /ith the dealer /ho has ailed to provide proper

qualit% service to the clients and getting the service issues fHed along /ith

revenue sharing issues i an%0

"/4#(As mentioned beore dealers are unavoidable devils in the present scenario0 .hisdealer net/or$ that /as once and is still the spearhead or sales o the companies

strengthening the distribution channel, is no/ itsel the reason or the bottlenec$s

in the /hole process Go/0 .he revenue generators or the companies are no/

themselves snatching the share rom the compan%0 .his requires immediate

actions to control the issue or /hich ollo/ing proactive measures are necessar%9

-0 Bnd user is actuall% the ace o the compan% and hence qualit% service to him

or his satisaction, rather delight is the crucial actor here030 .he start or this should be done /ith the /a% o signing the AMC during /hich

the end user, service provider and the compan% eHecutive all need to be

present and give consent or the terms and conditions0 .his brings a sense oo/nership in all the three parties0 I the third part% is retailer then someone

rom retailing side also be present0Control on retailer in this /a% and others is important especiall% or Carrier

/hich requires a bit aggressive mode in the same /a% as oltas does060 evision o rates is an important activit% to be done /hich requires a lot o

brainstorming rom the compan%=s side0 In order to get bac$ the previous

customers and also or ne/ customers it is necessar% to revise the rates so

that it becomes comparative to rates o local dealers0

.his pricing technique /ould a>ect customer purchasing behaviour that b% pa%ing

a little more services can be eHperienced rom the compan% or compan%

authoriects o getting services rom a local dealer along /ith other

per$s and advantages li$e service discounts can help a lot0 A dedicated team

or this in Services can be reall% helpul0

50 Mumbai being a vast cit%, the services division should have Area Service

Inspector or di>erent areas oe addressing service problems o clients in their

respective areas0

.his is relativel% ne/ /a% used b% some o the companies and are satisfed

/ith the results0 .his process brings a ocussed approach and ma$es a

streamlined process0 .he eHecutive has a particular area to ocus upon and

can solve issues in a much more dedicated /a%0 .his /ould an%/a%s require

addition o manpo/er and hence salar% cost increases0

@0 Another /a% is to target trade maga


36/38

0 .he other alternative is to refne the service process o registering complaints

till providing the satisactor% services0 Service delight is ver% essential in order

to get maHimum contracts and do/nturn the notorious dealers0

.his means immediate responses or registered complaints, giving a reerence

number, providing fHed date and time or servicing, sending s$illed

technicians to recti% the problems, ta$ing eedbac$ or the service, and then

again giving a call to confrm the perormance0 .his needs technolog%

investment or service technicians and the complaint registering sot/are and

related things0 .echnolog% can overall improve the time consumption in the

/hole process and also the control mechanism0

0 'roper reporting o technicians beore and ater the service provision is reall%

important and that needs to be made more ecient0 .his eedbac$ in

cohesion /ith customer eedbac$ /ould give proper insight /hether the issue

is solved or not0 ence an eHact reporting and verifcation is a tool to improve

the services e>ectiveness0

E0 In addition to all these measures still there /ill be dealers /ho /ould ollo/their o/n /a%s and be a pain or the compan%0 In that case clause in

agreements or breach o agreement and according penali


37/38

Also then industrial8corporate8retail relations can be loo$ed or/ard to0 For instance, li$e

;ohinoor, i1a% Sales, Croma, B*


38/38

BIBLIO'RAP("

CARRIER(2015, May 20).Website: http://www.carrierindia.com/

TECHSCIRESEARC(2015,June 5).Website.

http://www.techsciresearch.com/1804

Kotler,Philip.Marketing Management: A Soth Asian Perspecti!e."ew

#elhi,Pearson,$01$ %hemawat, Panka&.Strateg% and the usiness !andscape0:e/

)elhi,'earson,3+-6
http://www.carrierindia.com/http://www.techsciresearch.com/1804http://www.carrierindia.com/http://www.techsciresearch.com/1804

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