Unilever Crm 106x2l

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MODULE ASSIGMENT MANAGEMENT INFORMATION SYSTEM

PREFACE First, we would like to say thank you to our God who has given blessing and mercies for us. Also to Drs. Iwan Ekawanto, MM as our lecturers who helped and guided us so this assignment can be done finally. And for our classmates in KU 2009 that always ted us in every situation. This Operation Management I Module Assignment has been prepared to fulfill the requirements of the subject. In this module assignment, we will discuss our analysis about PT. UNILEVER INDONESIA Tbk. as our object of this assignment. We reviewed and analyzed the Corporate Relationship Management used by Unilever Indonesia. At last, this paper might be imperfect and there are so many weaknesses inside it. Hopefully that this paper can be useful to others. Critics and advices to be better are accepeted in pleasure. Thanks for the attention.

Jakarta, January 2012

TEAM MEMBER

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CHAPTER I BACKGROUND Customers Relationship Management(CRM) helps companies improve the provitability of their interaction with customers while at the same time making the interactions appear friendlier through individualization. Ti succeed with CRM, companies need to match product and campaigns to prospect and customers-in other words, to intelligently manage the customers life cycle. At the present time the business orientation of an enterprise is not only seen from how much the goods are sold or how much the amount of benefits obtained. Developments in the business world aware of employers to better understand their customer needs. Customer satisfaction is very important orientations for the sustainability of the company's product. Of satisfaction that formed it will arise a high loyalty to the product. To be

familiar with

any

factors

that can increase

customer

satisfaction, the company must have a network of good relationships with customers. This requirement became the forerunner to make a system to understand customer needs, maintain customer loyalty, and provide added value to our customers in conducting business or transactions with the company. Unilever Indonesia is engaged in the manufacture of food, beverage and medical equipment is aware of the need to create high customer loyalty towards its products. With the rapid competition among competitors in the food industry, beverage and

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medical supplies the company with large market level such as Unilever Indonesia are required to have the advantage of the benefits that a competitive advantage in competing. Unilever Indonesia implement Customer Relationship Management (CRM) to win the competition in maintaining relationships with customers and attract new customers. Through this program customers in particular are expected to retail customers become loyal to the company. I.2. PURPOSE OF WRITING The purposes of this module assignment are: • We understand and able to identify the location Balanced Scorecard perspectives • We know the direct implementation of theories in class in an organization in this case PT Unilever Indonesia I.3. METHODOLOGIES We use first data and secondary data to make this module assignment. By visiting the company we choose, also by interviewing managements in the company. For secondary data we browse from internet. And also from text book entitled “Cost Management” 4th edition. I.4. SYSTEMATIZATIONS The systematization of this module assignment as follow: •Chapter I : This part consist of Background, Purpose of Writing, methodology,

systematizations, company profile

•Chapter II : This part consist of Literature Review of Location Strategy •Chapter III : This part consist of implementaton of the data •Chapter IV : This part consist of conclusion and suggestion I.5

COMPANY PROFILE

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PT Unilever Indonesia Tbk. is part of the Unilever group, one of the world's largest companies in the field of basic goods that operates in approximately 75 countries. Unilever is the Anglo-Dutch t venture headquartered in London and Rotterdam and has a workforce of 300,000 people. Unilever is the main market of food, detergents, and cosmetics. In a world scale, the brands of goods produced better known Unilever Unilever's own consumers rather than name. Here are some examples of Unilever's products are widely consumed by the public: Blue Band margarine and Flora, Cornetto and Magnum ice cream, Lipton tea and Sariwangi, Rinso detergent powder and soap cream Omo, Lux and Lifebuoy soap, toothpaste Pepsodent and Close Up, Pond's cosmetic creams and cosmetics Elizabeth Arden, and many more products with famous brand. Status of PMA companies that have more than 60-year-old has four divisions, in which each division is producing its products and is responsible for marketing it. Divisions include: • Foods Division • Home Care Division • Personal Care Division • Ice Cream Division Our discussion will focus on the implementation of the Balanced Score Card at the division level, the Wall's Ice Cream Division that officially founded in early 1992. PT

Unilever

Indonesia

Tbk.

has

the

form

of

a

matrix

organizational structure. The structure is intended to produce goods that are well coordinated as well as directing the development of cross-functional expertise in the organization. In the structure of such organizations, an employee can have two bosses. Vision and Mission

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The vision of PT Unilever Indonesia Tbk. are: "Being First Choice Customers and Consumers" To realize its vision, PT Unilever Indonesia Tbk. has the following mission: "Adding vitality in life, meeting the needs for nutrition, hygiene and daily personal care with brands that help consumers feel good, look good and get more out of life " and : • Being the best and first in class in meeting the needs and aspirations of consumers • Being the closest partner for customers and partners • Eliminates without value-added activities in the entire process flow • Provide employee job satisfaction • Trying to achieve profitable growth so as to provide just compensation for employees and shareholders • Recognized for his integrity and concern for society and the environment.

CHAPTER II THEORY

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A.

CUSTOMER RELATIONSHIP MANAGEMENT Customer

relationship

management

(CRM)

is

a

widely

implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical .The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.Customer relationship management describes a company-wide

business

strategy

including

customer-interface

departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy. B.

BENEFITS OF CRM A CRM system may be chosen because it is thought to provide

the following advantages : • Quality and efficiency • Decrease in overall costs • Decision • Enterprise agility • Customer Attention • Increase profitability C.

CHALLENGES OF CRM Successful development, implementation, use and of

customer relationship management systems can provide a significant advantage to the , but often there are obstacles that obstruct the from using the system to its full potential. Instances of a CRM

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attempting to contain a large, complex group of data can become cumbersome and difficult to understand for an ill-trained . Additionally,

an

interface

that

is

difficult

to

navigate

or

understand can hinder the CRM’s effectiveness, causing s to pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of customer relationship management software has also led to an industry-wide shift in evaluating the role of the developer in deg and maintaining its software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or bad in its use. 1. Complexity Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple CRM solutions which focused on monitoring and recording interactions and communications. Software solutions then expanded to embrace deal tracking, territories, opportunities, and the sales pipeline itself. Next came the advent of tools for other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises software that companies purchase and run on their own IT infrastructure. 2. Poor usability One

of the largest challenges

that customer relationship

management systems face is poor usability. With a difficult interface for a to navigate, implementation can be fragmented or not entirely complete. The importance of usability in a system has developed over time. Customers are likely not as patient to work through malfunctions or PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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gaps in safety, and there is an expectation that the usability of systems should be somewhat intuitive: “it helps make the machine an extension of the way I think — not how it wants me to think.” An intuitive design can prove most effective in developing the content and layout of a customer relationship management system. Two 2008 case studies show that the layout of a system provides a strong correlation to the ease of use for a system and that it proved more beneficial for the design to focus on presenting information in a way that reflected the most important goals and tasks of the , rather than the structure of the organization. This “ease of service” is paramount for developing a system that is usable. In many cases, the growth of capabilities and complexities of systems has hampered the usability of a customer relationship management system. An overly complex computer system can result in an equally complex and non-friendly interface, thus not allowing the system to work as fully intended. This bloated software can appear sluggish and/or overwhelming to the , keeping the system from full use and potential. A series of 1998 research indicates that each item added to an information display can significantly affect the overall experience of the . 3. Business reputation Building and maintaining a strong business reputation has become

increasingly

challenging.

The

outcome

of

internal

fragmentation that is observed and commented upon by customers is now visible to the rest of the world in the era of the social customer; in the past, only employees or partners were aware of it. Addressing the fragmentation requires a shift in philosophy and mindset in an organization so that everyone considers the impact to the customer of policy, decisions and actions. Human response at all levels of the organization can affect the customer experience for good or ill. Even one unhappy customer can deliver a body blow to a business. PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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Some developments and shifts have made companies more conscious of the life-cycle of a customer relationship management system. Companies now consider the possibility of brand loyalty and persistence of its s to purchase updates, upgrades and future editions of software. Additionally, CRM systems face the challenge of producing viable financial profits, with a 2002 study suggesting that less than half of CRM projects are expected to provide a significant return on investment. Poor usability and low usage rates lead many companies to indicate that it was difficult to justify investment in the software without the potential for more tangible gains. D.

TYPES/VARIATIONS 1. Marketing CRM systems for marketing help the enterprise identify and

target potential clients and generate leads for the sales team. A key marketing

capability

is

tracking

and

measuring

multichannel

campaigns, including email, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to track customer behaviour and nurture them from first to sale, often cutting out the active sales process altogether. In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client relationship. These activities may include such activities as free s, online video content, and online web presentations. 2. Customer service and CRM software provides a business with the ability to create, assign and manage requests made by customers. An example would be Call Center software which helps to direct a customer to the agent PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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who can best help them with their current problem. Recognizing that this type of service is an important factor in attracting and retaining customers, organizations are increasingly turning to technology to help them improve their clients’ experience while aiming to increase efficiency and minimize costs. CRM software can also be used to identify and reward loyal customers which in turn will help customer retention. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools and authority to solve client problems. 3. Social media Social media sites like Twitter, LinkedIn and Facebook are amplifying the voice of people in the marketplace and are having profound and far-reaching effects on the ways in which people buy. Customers can now research companies online and then ask for recommendations through social media channels, making their buying decision without ing the company. People also use social media to share opinions and experiences on companies, products and services. As social media is not as widely moderated or censored as mainstream media, individuals can say anything they want about a company or brand, positive or negative. Increasingly, companies are looking to gain access to these conversations and take part in the dialogue. More than a few systems are

now integrating

to social

networking

sites. Social

media

promoters cite a number of business advantages, such as using online communities as a source of high-quality leads and a vehicle for crowd sourcing solutions to client- problems. Companies can also leverage client stated habits and preferences to "Hypertargeting" their sales and marketing communications. Some analysts take the view that business-to-business marketers should proceed cautiously when weaving social media into their business processes. These observers recommend careful market research to determine if and where the phenomenon can provide PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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measurable benefits for client interactions, sales and . It is stated that people feel their interactions are peer-to-peer between them

and

their

s,

and

resent

company

involvement,

sometimes responding with negatives about that company. E.

STRATEGY For larger-scale enterprises, a complete and detailed plan is

required to obtain the funding, resources, and company-wide that can make the initiative of choosing and implementing a system successfully. Benefits must be defined, risks assessed, and cost quantified in three general areas: • Processes : Though these systems have many technological

components, business processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology pertinent

that consolidates and intelligently information

about

clients,

sales,

distributes marketing

effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and processes before choosing a technology platform; some will likely need re-engineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them. • People : For an initiative to be effective, an organization must

convince its staff that the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and the case for change. Collaboration, teamwork, and two-way

communication

should

be

encouraged

across

hierarchical boundaries, especially with respect to process improvement.

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• Technology : In evaluating technology, key factors include

alignment with the company’s business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software issues. Depending upon the size of the company and the breadth of data, choosing an application can take anywhere from a few weeks to a year or more.

CHAPTER III IMPLEMENTATION OF THEORY IMPLEMENTING CUSTOMER RELATIONSHIP MANAGEMENT IN PT. UNILEVER TBK Unilever is committed to providing branded products and services which consistently offer value in of price and quality and are safe for the purpose of use. products and services will be labeled, d and communicated accurately and properly. Three phase customer life cycle in CRM : 1.

Acquired the new customer Unilever can be get the new customer by : New innovations to_the product or service facilities that already_ exist, thus_attracting more customers because there

are

alternative options. Unilever R&D has an important role to play in the design and use of our products because consumers are increasingly looking for products that mean they can 'do their bit' for the environment while at the same time helping them look good, feel good and get more out of life. PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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Unilever R&D already has a long history of developing products that meet these exacting criteria and, looking to the future, all our products will incorporate social, economic and environmental metrics in their innovation plans. Some recent examples include: •

An upside-down roll-on deodorant that uses 18% less plastic in each pack.

•

PureIt, a battery operated home water purification device which gives households in India access to clean, pure drinking water at low cost.

•

Small and Mighty laundry liquids which, because of their size and

concentration,

reduce

CO2,

water

usage

and

transportation costs. In

addition Unilever give

product

comfort to

information they

information is

customers in

obtaining

needed. Unilever product conducted advertising

in television, in_newspapers or magazines._Besides Unilever als o try_to provide Unilever products in_a_timely_manner and distr ibute and spread_out throughout Indonesia, from the time the product left the factory through warehouse until the end of this product delivered to

customers in perfect condition as

expected. 2.

Increasing customer value Unilever always give priority the customer in which the values ofunilever always provide the best service and products to meet theneeds of the community. In addition unilever always maintain the quality of its product are always good and satisfying customers.

3.

Maintain the existing customer

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MODULE ASSIGMENT MANAGEMENT INFORMATION SYSTEM Companies can retain the existing customers by: a.

Provide time to listen_to_the_needs of_customers, includingc ustomer dissatisfaction towards our products_or services, wh ichwe use_to become_better longer. Unilever is one company

thatreally listens

and meet

customer

needs this can be viewed from creation of products with new innovations to

meet customer

of incidence product

needs today. Examples

innovation "Molto

Sekali

Bilas" or "Sunlight Sekali Usap". It can meet the needs of Indonesian housewife who_need products that_can assist th em in_doing_houesework. Besides Unilever also open

to all

kinds complaints about customer dissatisfaction. It can be seen by

the

customer

care or call Unilever consumer

voice in_which the_consumer_can critical, ask, and give advi ce on Unilever

product.

Dedication

care services that do this can

of customer

be

from Unilever Unilever Indonesia tbk's winning "Call CanterService

proved award

Excellence Service" organized

by the Frontier Centre for Customer Satisfaction and loyalty. b.

Sending brochures or souvenirs at certain events to loyal customers. It is also often done by Unilever to retain the loyal customers, Unilever often open stand on specific events and provide sufficient promotion of its products. For example the promotion of the new flavor of ice cream Magnum, promotion of a product at a discounted price is quite appealing or the promotion of the product of extra size with a fixed price. Apart from that Unilever also often provide surprise or dorprizes like a surprise to our customers lifebouy, sunsilk diamond necklace raffle prizes, etc.

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From sourcing raw materials to delivering the end product, the technologically advanced supply chain underpins the growth of Unilever, providing service excellence at competitive costs. Unilever has proactively developed new capabilities in customer relationship management and supply chain for partnering the development. They now have a business system in place that delivers excellence in customer service, while drivinggrowth for the company and the customers. In-store merchandising is a key enabler for their brands to stand out prominently and attract the attention of consumers. Customised activation to drive trial and preference for their brands is another key thrust. They keep interacting with the customers thus providing them experience in a number of innovative ways. Innovative Services for Customer Attraction and Retention : •

Give a reward for the loyal consumer and customer by do a surprise like door to door program (give a surprise like money or merchendise for a customer who has lifebouy produt in their home)

•

Rumah cantik citra provide a services for the female who want to care herself by bring the product and rumah cantik citra will give a free charge for service like massage, lulur, etc

•

In-store sampling for their range of home care and personal care product like molto, axe parfume, and another product that has a fragrance

•

Provide a good product for middle down people by provide a sachet product. Self-service Stores As the country develops, the organised trade will develop rapidly,

as

experienced

inother

countries.

Self-service

stores

and

supermarkets, though small as a channel today,are fast emerging in metros and large towns. The self-service format is a great enabler for PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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such increased interaction with consumers and they are fully leveraging this opportunity to drive trial and preference for their brands. Pioneering New Ways for Customer Relationship All these initiatives build convergence of product availability, brand communication andbrand experience in the current channels. But these current channels are somewhatconstrained by the existing formats and business models. They therefore need to gofurther in creating touch points for the brands relevant to the scale and nature of theIndian consumer opportunity. They are thus creating a whole set of new channels thatare designed on the principles of holistic with consumers. These are across allconsumer segments in both urban and rural India. Understanding customer needs The main purpose of this area is to understand customer needs and work together tosolve t logistical challenges such as on shelf availability. Roles include order management, working at the interface between warehousing and transportation, andensuring the right products arrive in the right place at the right time. Realdia an effort to improve the consumer experience and gather better customer information, Unilever has started using Astute Solutions' RealDialog tools in its call centers. RealDialog uses a linguistics engine to analyze customers' questions in their own words and then provide center agents with easy-to-read responses. By feeding the answers to agents, RealDialog allows companies to control their messaging. Another major strength of the system, according to Astute, is that it simplifies the agents' jobs, allowing them to provide answers more quickly and focus on relationship building. PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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This implementation meets two critical needs. It enables for company to understand the consumers' immediate needs and enhance their experience at the time when it matters most. It also gives us powerful insights — through detailed, actionable consumer data — to further our business objective of delivering products that meet the changing tastes, lifestyles and expectations of our consumers.” RealDialog also helps Unilever and other customers, including Circuit City, gather actionable consumer insights. The system logs their queries and comments verbatim, so that managers and executives can gauge consumers' feelings about their products. When Unilever adds RealDialog's capabilities to its branded Web sites in the phase of the partnership, brand managers will be able to react to consumers' comments online in real time. Unilever was previously using a proprietary database of all of its products in its call centers. The company's centers in the US and Canada deal with more than 90 brands, spanning 14 categories of consumer goods — which made it difficult for agents to search for proper responses. With RealDialog, consumers won't have to hunt for answers and can feel confident in their accuracy. It will increase the value of the customer experience and ultimately generate revenue because customer be happy with the service they're getting and the product information they're finding. Barriers to implementation of CRM in the PT. Unilever Limited In operating the company and achieve its objectives, the only thing that becomes barriers to the company Unilever Indonesia Tbk is a competition with other companies moving in the same field. And to facing these barriers, efforts are being made to future Unilever Indonesia, which will hold the MT program (Management Training) in the search for human resources potential . The MT undergoing a job PROGRAM KELAS UNGGULAN FAKULTAS EKONOMI Sekretariat : Kampus A, Jalan Kyai Tapa Grogol Jakarta Barat 11440 Gedung I Lantai 9 - Phone : 5663232 Ext. 354

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as assistant manager for two years. An assistant manager who is placed in the marketing department, for example, should be able to learn a lot about marketing. He must jump into the traditional markets to the corners of the area to know and understand the needs of consumers. On the other hand, the company monitors its development as an assistant manager to evaluate whether this is worth being promoted as a manager or not.

CHAPTER IV CONCLUSION 1.

CRM is defined as a single unit sales, marketing and service strategies that prevent the occurrence of work activities that are

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not coordinated between the well and it depends on the action the company that coordinated action. CRM concentrates on what is judged by customers, not on what the company wants to sell. Customers do not want to be treated equally. But they like to be treated individually. 2.

CRM development undertaken by Unilever Indonesia by using Astute Solutions RealDialog, ie a tool in the call center. RealDialog uses linguistic analysis engine customers in each word and then provides center agents so easily read the response. RealDialog allows them to control the message.

3.

CRM Implementation is expected to increase customer loyalty and also increase customer reach. High level of satisfaction to be the main target application of CRM. The customer are expected to deliver a response to the company and their valuation. With the CRM is expected to be able to better understand the company and its customers to know the needs of its customers.

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LITERATURE O’Brien, James A., 2007. “Customer Relationship Management”, Management

Information

Systems:

Managing

Information Technology in the E-Business Enterprise (5th ed.) . McGraw - Hill Higher Education http://www.unilever.co.id/

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