crm market in india 2014 sample

CRM Market in India

April 2014

2 CRM MARKET IN INDIA 2014.PPT

Executive Summary

Market

Drivers and Challenges

Trends

Competition

CRM market in India is valued ~ INR ab bn in 2012 and is estimated to grow at a CAGR of ~ xyz% over 2013-

18e

Telecom sector stands out as the largest procurer within the CRM market in India

Company A, B, C and D are the major implemented CRM solutions, followed by Company E and F and others

Demand for Transparency

Emergence of Mobile CRM

Drivers

– Improved Customer Relationship and Operational

Improvement

– Global Competence

– Significant Cost Reduction

– Technologically Sound Manpower

Challenges

– Implementation and Operational Cost

– Lack of Awareness of True Benefits

Major Players

Company A Company B Company C

Company D Company E Company F

Introduction of Social CRM

Rising Cloud-based CRM Adoption


•Macroeconomic Indicators

•Introduction

•Market Overview

•Types, Modules and Features

•CRM Use in SMBs

•CRM Selection Criteria

•Drivers and Challenges

•Key Trends

•Scope of CRM in Key Sectors

•Competitive Landscape

•Strategic Recommendations

•Appendix


SAMPLE Economic Indicators (1/3)

11

12

13

14

15

b2

Q2

a3 c2

d2 b3 a4

Q3

c4 c3

Q4

b4

c1 d1

Q1

a2

b1

a1

INR tn

2010-11 2011-12 2013-14 2012-13

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

Aug 2013 - Sep 2013 Sep 2013 - Oct 2013

p

Oct 2013 - Nov 2013

q s

%

t

r

Jul 2013 - Aug 2013 Nov 2013 - Dec 2013


• Global CRM market reviews: On , Company A had acquired X Inc., a leading provider of

cloud-based marketing automation and revenue performance management software

On , B bought for INR xxxxx mn, company Q the world’s leading social media marketing platform

On , Company A acquired company D, a cloud-based content marketing provider

• In 2013, edging out Company Y, Company B has taken the lead in the CRM market They remain the only top CRM company that exists solely in

the cloud

CRM Market – Global Overview

CRM market is witnessing steady growth with the increasing trend of CRM spending worldwide

Market Size and Growth

2016e

f1

2017e

INR bn

2017e

X%

2015e

e1

c1 d1

a1

2014e

b1

2013e

Global CRM Market – Leading Continents Global CRM Market – Major Sectors


In India, on-premise solutions have higher traction than cloud solutions, unlike developed nations such as US, UK

• Over the years, CRM has evolved from point solution to

360 degree enterprise-wide initiative in India

• CRM implementations in India are mainly focused on

marketing and campaign management

• Cost and installation time varies for different softwares Average installation time for a standard software – 1.5 months

Approximate cost – INR 0.1 mn

• A, B ,C and Dare the major implemented CRM solutions

followed by E ,F and others

Market Overview – India Market Size and Growth - India

0

INR bn

Z%

2018e

f1

2017e

e1

2016e

d1

2015e

c1

2014e

b1

2013e

a1

On-Premise CRM On-Demand CRM

Powerful management

tools

Easy to use and fast to

deploy

Completely customizable Managed by business users

Driven By IT Limited functionality

Difficult to use Isolated CRM


CRM can be broadly categorized

Text • Text

Text • Text

Text • Text

Text • Text

Types of CRM


Large presence of SMBs in India proves to be highly beneficial for CRM vendors

• Currently, 50 mn operational SMBs (Small and Medium Businesses) contribute to xyz mn

Growing economic activities in the country is resulting in the SMBs witnessing an exponential growth

• Indian SMBs are expected to grow at a1%

• Existence of a massive SMB segment in India proves particularly beneficial for CRM vendors in India

Increased competition in the market is forcing SMBs to adopt CRM solution to maintain their business standards, helping the vendors to

increase sales

CRM Adoption – SMBs (1/3)

Some potential benefits of CRM implementation

Benefits Description

Text Text

Text Text

Text Text

Text Text


SAMPLE CRM adoption by SMBs is facilitated by both private players and…

CRM Adoption – SMBs (2/3)

• Overall IT spend of the SMBs is expected to reach about INR B2 mn

• Increased awareness and interest level of base-level SMBs in technology clearly indicates India's technological progress

~a1 mn b1 mn ~c1mn d1mn Technology ready addressable market

Technology ready addressable market

Text

Text

Text

Addressable Market SMB

Segments

Retail

Professional Services

Manufacturing Enterprises

Hotels and Restaurants

Education


Drivers and Challenges

Drivers

Improved Customer Relationship and Operational Improvement

Global Competence

Significant Cost Reduction

Technologically Sound Manpower

Challenges

Implementation and Operational Cost

Lack of Awareness of True Benefits


Enhancement of customer care operations and achievement of global standards are catalyzing CRM adoption

Improved Customer Relationship and Operational Improvement Impact

• Text

• Text

• Text

• Text

Global Competence Impact

• Text

• Text

• Text

• Text


Trends - Summary

Rising Cloud-based

CRM Adoption Demand for

Transparency

Introduction of

Social CRM Emergence of Mobile CRM

Key Trend

s


India is becoming a promising market for mobile CRM owing to…

Emergence of Mobile CRM (1/2)

Increasing mobile devices boosts

growth in mobile CRM

• Mobile CRM on smartphone or tablet allows customers to view and update critical customer

information from their CRM database in real-time

• Mobile CRM is expected to witness a greater level of adoption with the growth in smartphones

shipments in India

Continual decline in the minimum price points of ‘smart’ handheld devices is primarily aiding rise in

Smartphone market penetration

Smartphone shipments in India is expected to increase by more than three-fold in 2015 from that of 2011

0

Q3 2013

a1

b1

Q3 2012

Units mn

X%

0

Units mn

d1

2015e

Y%

2014e

c1

Smartphone Shipment In India q-o-q basis Smartphone Shipment In India y-o-y basis


SAMPLE

Social CRM Global Market Share (2013)

I%

P%

N%

L% E%

K%

A% B%

F% G% H%

M% C% D%

J%

e

d

c k

j

i

o

h

g

f

b

a

n

m

l

• Social CRM includes many platforms namely: Facebook , Twitter, linkedin , Youtube , Message Board and Blogs • Facebook and Twitter are two major platforms followed by Youtube and Linkedin • As social media’s importance is rising, firms are adopting ways to promote their CRM strategies through social

and digital platforms • With customers voicing grievances on the Web even before approaching a company, firms are in a way compelled

to embrace social CRM


SAMPLE A Vs B (Indian Market Overwiew)

0

INR bn

2014e

b2

b1

2013e

a2

a1

A

B • A and B are the two major segments of the X

service market in India • Due to an increase in the overall IT based

expenditure in India the estimated spending on X services in India over the next five years is expected to be ~ INR a1 bn

• Out of this total spending, A will occupy ~ x% • Out of all the X services in India, A represents the

most mature section today, as a result of which more firms are inclined towards its adoption

• Despite the introduction of other services in the market, A continues to be at the top followed by B

• The Indian market has been growing at a steady pace over the past few years and will continue this trend during the coming years


SAMPLE

Although CRM is being adopted by numerous verticals, the opportunities in all sectors are growing even more

C • Text

Scope of CRM in Key Sectors

A • Text

F • Text

D • Text

Information Technology

Healthcare • Text • Text E B


Case Study 1

Case: ABC saves time, increases revenues using xyz

Solution Requirements Benefit

• Text • Text • Text

Technology Used

Xyz software

Client Organization IT Vendor

ABC y

Industry

x


SAMPLE Porter’s Five Forces Analysis

TEXT TEXT

TEXT

Impact High

Impact Medium

Impact High

TEXT

Impact Low

TEXT

Impact Low to Medium


Competitive Benchmarking (1/3) SAMPLE Key Ratios of 3 Major Private Companies – Operational Basis (FY 2013) (1/3)

-100

-50

0

50

%

S Ltd

c1 c2

P Ltd C Ltd

b2 b1

a2 a1

Operating Margin Net Margin

• C ltd has recorded operating margin of a1%, higher than S ltd and Pltd which has operating margin of b1% and c1% respectively in 2013

• C ltd has also recorded net margin of a2%, higher than than S ltd and Pltd which has operating margin of b2% and c2% respectively in 2013


SAMPLE Key Ratios of 3 Major Private Companies – Operational Basis (FY 2013) (2/3)

Competitive Benchmarking (2/3)

0

20

40

60

%

P Ltd

c2

c1

S Ltd

b2 b1

C Ltd

a2 a1

Return on Capital Employed Return on Equity

0

5

10

15

P Ltd

z1

S Ltd

y1

C ltd

x1

Current Ratio

• P ltd has recorded return on equity (ROE) of c1%, while C ltd and S ltd have recorded ROE of a1% and b1% respectively in 2013 implying P ltd is generating higher profit with the money shareholders have invested than others

• P ltd has recorded return on capital employed (ROCE) of c2%, higher than both C ltd and S ltd which have recorded ROCE of a2% and b2% respectively

• C ltd has recorded current ratio of x1 higher than that of S ltd and P ltd which recorded current ratio of y1 and z1 respectively implying C ltd is in a better position to pay for its short term debts


SAMPLE Key Ratios of 3 Major Private Companies – Operational Basis (FY 2013) (3/3)

Competitive Benchmarking (3/3)

0.0

0.5

1.0

1.5

2.0

P Ltd

z1

S Ltd

y1

C Ltd

x1

Asset Turnover Ratio

• P ltd has recorded debtors turnover higher than C ltd and S ltd implying that P ltd is doing better as they are collecting money from their debtors in a faster pace

• P ltd has recorded asset turnover ratio of z1 higher than C ltd and S ltd implying that P ltd is more efficiently using its assets in generating sales revenue

0

50

100

150

200

P Ltd

c3

c2 c1

S Ltd

b3 b2 b1

C Ltd

a3 a2 a1

Debtors Turnover Ratio

2013 2012 2011


SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Public: Foreign Company – A Ltd. (1/4)

Head Office Pune

Name Designation

Person President and CEO

Person CFO

Person Head of South West Asia Region and Regional Vice President

Person Division President India

Category Products/Services

Products

23

Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR ‘d2’ bn in FY 20--, as compared to net profit of INR ‘c2’ bn in FY 20--

• The company reported total income of INR ‘d1’ bn in FY 20--, registering an increase of ‘p’% over FY 20--

• It earned an operating margin of ‘x.x’ per cent in FY 20--, an increase of ‘y.y’ percentage points over FY 20--

• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase of ‘z.z’ per cent over FY 20--

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Particulars y-o-y change

(20-- – -- ) 20-- 20-- 20-- 20--

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Net Profit/Loss Total Income

0

2000

4000

6000

8000

0

50

100

150

200

INR mn INR mn

2013

d2

d1

2012

c2

c1

2011

b2

b1

2010

a2 a1


CRM MARKET IN INDIA 2014.PPT


SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview

• Company A Ltd. is a provider of software and services for communications, media and entertainment industry service providers

• Company with its CRM solution for the telecom sector made significant impact in the Indian market

• It offers customer care, billing and order management systems for telecom, Internet services providers

Launch • On , A ltd had announced the designing of a new complete cloud system

• On , A ltd had introduced a new Wi-Fi Experience solution

100%

50%

0%

2013

100%

Product

0%

d1

2012

c3 c2

c1

2011

b3 b2

b1

2010

a3 a2

a1

2013

d3 d2

Region 2

Region 3

Region 1



SAMPLE Private: Foreign Company – A Ltd. – SWOT Analysis (4/4)

Text

Text

Text

Text

T O

W S


SAMPLE Private: Foreign Company – B Pvt. Ltd. (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Solutions

Name Designation

Person Executive Chairman and President

Person Chief Executive Officer

Person Chief Restructuring Officer and Director

Person Chief Financial Officer and Chief Accounting Officer of CDC Corporation

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Head Office

Bangalore


SAMPLE Private: Foreign Company – B Pvt. Ltd. (2/5) Shareholders of the Company dd/mm/yyyy Ownership Structure

Name No. of Shares held

Shareholder 1

a

Shareholder 2 b

Total xxxx

100.0%100.0%100.0%

2012 2013 2011

Segment


SAMPLE Particulars

y-o-y change (2013-12)

2013 2012 2011 2010

Profitability Ratios

Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Private: Foreign Company – B Pvt. Ltd. (3/5)

Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR d2 mn in FY 20--, as compared to net profit of INR c2 in FY 20--

• The company reported total income of INR d1 mn in FY 20--, registering a decrease of x% over FY 20--

• The company earned an operating margin of y% in FY 20--, registering an increase of “m” percentage points over FY 20--

• The company reported a current ratio of z% in FY 20--, registering an increase of “q%” over FY 20--

Improved Decline

0

INR mn INR mn

2013

d2

d1

2012

c2

c1

2011

b2

b1

2010

a2

a1

Net Profit/Loss

Total Income


Business Highlights

Private: Foreign Company – B Pvt. Ltd. (4/5)

Description News

Overview

• B Pvt. Ltd. is a subsidiary of The B Group plc, a leading international supplier of business management

software solutions and related products and services for small to mid-sized businesses

• B software is the third biggest application vendor in the world with x mn customers worldwide

• Its CRM products, A CRM, B CRM C and D are targeted at Indian SMBs

• Its value added reseller (VAR) network is significant in India, offering customers local, on-spot support for

the on-demand and on-premise CRM solutions

Industries Catered • B Software has over 1000 customers in India for its CRM, ERP, Payroll and HRMS products across

industries such as, xyz, pqr, abc,


Private: Foreign Company – B Ltd. – SWOT Analysis (5/5)

Text

Text

Text

Text

T O

W S


SAMPLE Increase

Affordability and Flexibility of

CRM Solutions

Strategy Adoption Area

Offer Multi-Platform Social and Mobile

CRM Solution

Regional Growth Introduce Loyalty

Programs and Increase Benefit

Awareness

Strategic Recommendations (1/2)

• TEXT

• TEXT

• TEXT

• Provide affordable and flexible CRM solutions • Integrate Social and Mobile CRM functionality into a single CRM solution

• Introduce loyalty programs for CRM solutions • Increase awareness regarding CRM benefits among consumers


Thank you for the attention

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