LV Thạc sỹ_Customer satisfaction at Tan Co JSC

0 |Page ACKNOWLEDGMENT My thesis will not be finished without great assistance from my teachers and colleagues First of all, I would like to express my great gratitude to my supervisor, Assoc Prof Dr … During the whole process of implementing this thesis, I have always received his excellent guidance and valuable comments for improving the research Second, I express my sincere thanks to teachers and staff of NEU Business School They are willing to give me their great support, useful knowledge for my process of studying this thesis Then, I would like to say thank you to customers of Tan co Consulting and Trading Joint Stock Company who are using the company’s products and helped me to implement the survey And I have never forgot to say thanks for my dear colleagues who gave me all necessary supporting documents to get data for analyzing Last but not least, I would like to express my deepest gratitude to my closed friends at EMBA 9C and my family for their encouragement and support throughout my doing thesis TABLE OF CONTENTS ACKNOWLEDGMENT ABBRIVIATIONS LIST OF FIGURES EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 Rationale 1.2 Research Objectives 1.3 Research Questions 1.4 Research methodology 1.4.1 Research process 1.4.2 Data Collection .5 1.4.2.1 Secondary data collection 1.4.2.2 Primary data collection 1.4.3 Data analysis 1.5 Research Scope .9 1.6 Thesis Structure CHAPTER 2: THEORETICAL BACKGROUND OF INDUSTRIAL CUSTOMER SATISFACTION 10 2.1 Customer satisfaction 10 2.2 Concept of industrial customer satisfaction 11 2.3 Model and Dimensions to analyze industrial customer satisfaction .12 2.3.1 Summary of Criteria: 19 CHAPTER 3: OVERVIEW OF STEEL PRODUCT MARKET AND TAN CO JSC 22 3.1 Steel product market in Vietnam .22 3.1.1 Vietnam economy in recent years .22 3.1.2 The steel product market in the recent years 22 3.2 Overview of Tan co JSC .24 3.2.1 Organizational structure 28 3.2.2 Tan co JSC’s buying process 29 3.2.3 Recent sales review 30 3.2.4 Summary of some target customers: 33 |Page CHAPTER 4: RESEACH FINDINGS ABOUT CUSTOMER SATISFACTION AT TAN CO JSC 43 4.1 Dimensions and Criteria applied for analyzing customer satisfaction at Tan Co JSC 43 4.2 Overall assessment of Result of Customer Satisfaction at Tan co JSC .43 4.2.1 Customer satisfaction with products at Tan Co JSC .46 4.2.2 Customer satisfaction with salespeople at Tan Co JSC 48 4.2.3 Customer satisfaction with product-related information at Tan Co JSC 49 4.2.4 Customer satisfaction with order handling at Tan Co JSC: 50 4.2.5 Customer satisfaction with technical services at Tan co JSC: 51 4.2.6 Customer satisfaction with interaction with internal staffs at Tan co JSC 52 4.2.7 Customer satisfaction with complaint handling at Tan co JSC 53 4.3 Summary of Customer Satisfaction at Tan co JSC 54 CHAPTER 5: RECOMMENDATIONS TO IMPROVE CUSTOMER SATISFACTION AT TANCO JSC 57 5.1 Orientation of Company about Customer Satisfaction until 2015 57 5.2 Recommendations for improving Customer Satisfaction at Tan Co JSC 57 5.2.1 Improving price performance of products .57 5.2.2 Improving salespeople’s performance 60 5.2.3 Improving order-handling, especially with logistics system 64 5.2.4 Improving technical service 66 5.2.5 Other recommendations: 67 CONCLUSIONS 68 LIST OF REFERENCES .69 APPENDICES .71 ABBRIVIATIONS IBB Industrial Buying Behavior OTIF On time and in full SOCO The selling orientation – customer orientation TAN CO JSC Tan co Consulting and Trading Joint Stock Company LIST OF FIGURES Figure 2.1: Seven dimensions of INDSAT model 15 Figure 3.1: Tan co JSC Organizational Structure 28 Figure 4.1: The INDSAT score chart .45 LIST OF TABLE Table 2.1: Criteria of delivery performance 17 Table 3.1 Key macro-economic indicators in recent years 22 Table 3.2: Revenues in the year 2009-2011 30 Table 3.3: Revenues of fastener product in the year 2009-2011 31 Table 3.4: Income before tax in the year 2011 32 Table 3.5: Revenues of construction steel product in the year 2011 40 Table 4.1: The INDSAT score by seven dimensions 44 Table 4.2: Customer Satisfaction with products 46 Table 4.3: Customer Satisfaction with Salespeople .48 Table 4.4: Customer Satisfaction with Product-related information 49 Table 4.5: Customer Satisfaction with Order Handling 50 Table 4.6: Customer satisfaction with technical services .51 Table 4.7: Customer satisfaction with interaction with internal staffs 52 Table 4.8: Customer satisfaction with complaint handling 53 |Page EXECUTIVE SUMMARY Tan Co Consulting and Trading Joint Stock Company established in year 2000 under Vietnam Law on Enterprise Until now, Tan co JSC has been developing and capacity of providing the most products as steels, equipment, machine, materials for construction and industry fields Together with more difficult competition since Vietnam opened its markets to all foreign investors, Tan co JSC is facing with many difficulties in doing business 1015% of their customers left for other suppliers annually Some has reduced their volume and shifted one part of their demands to Tan co JSC’s rivals On the other hand, board of managers sees that this is the biggest problem the company needs to solve because this means that revenues from tradition products as fasteners, cable wires which are the main revenues will be decreased Hence, it forces Tan co JSC to improve their performance for further customers’ satisfaction The objectives of this thesis is to review theoretical background on industrial customer satisfaction; recording customers’ evaluation on Tan co JSC’s products and services to find out dimensions affecting industrial customer satisfaction, then propose solutions to enhance industrial customer satisfaction In order to conduct the survey, the author used both quantitative and qualitative method The secondary data was collected from annual reports, magazines and internet To get the primary data, a questionnaires survey including 26 questions was designed and sent to 30 organizations For each organization, the author chose to send questionnaires to two people One was a purchasing staff and one was a technical staff Total questionnaires which were sent are 60 ones All of them were collected Besides, in-depth interviews were conducted with 12 customers Through analyzing data collected, the author recognized that customers satisfied with some aspects of services the company provided However, they haven’t satisfied at some aspects:  Sales people lack of professional: they don’t have a good knowledge of products, didn’t prepare well when working with customers Besides, they didn’t visit their customers frequently |Page  Order handling was not good at controlling package’s quality and delivery for huge quantity: most of big customers complained about the pallets, carton box’s covers They are thin and weakness, the shelves are rusty and old Besides, customers complained that delivery got delay sometimes This affected their production plan badly  Technical staff didn’t have enough time to take care customers: most of staffs are good at commercial activities rather than technical issues And there are only a few people taking care of this So, they couldn’t visit customers frequently to catch their problem in time  Prices of products are still high and not competitive : The reason is that the company didn’t give stable price for a certain period The price changed weekly and not competitive Therefore, customers got difficulties in estimating their costs Based on shortcomings from the study, the author proposed some suggestions to improve customer satisfaction at Tan co JSC as follows:  Improving price performance of products  Improving logistics system including: delivery, quality of package and stock control  Improving salespeople’s performance  Improving technical services |Page CHAPTER 1: INTRODUCTION 1.1 Rationale Customers are the key factor in the development of each company because they bring companies with revenues, profits and reputation If they are not satisfied with your company’s products and services, they will abandon the company or even badmouth it And if they are satisfied with our products and services, they will be likely to re-purchase and have good word of mouth about the company In fact, the cost of keeping a customer will be much more than that of gaining a new one Therefore, satisfying customer is one self-evident thing in the company’s long-term strategy Tan Co Consulting and Trading Joint Stock Company established in year 2000 under Vietnam Law on Enterprise After 12 years, Tan co JSC has capacity of trading and providing the most products as steels, equipment, machine, materials for construction and industry fields Tan Co Company becomes close to many customers in all industries assembly, machineries erection, hydropower, thermal power, cement, railway, petroleum, traffic, infrastructure, civil engineering, buildings… and the company is now ready to serve for the new works in nuclear power, high-speed railway and aviation industry In the first years company only business some fasteners products as bolts, nuts, screws and now company have been diversified business products as steel plates, steel coils, shaped steel, rails for train, cable wires, anchorages bearing for construction bridge, construction steels, equipment and machineries in the industry with 02 sales departments in Hanoi and 06 branches in Hai Phong, Da Nang, Nha Trang, Vung Tau, Ho Chi Minh, Dong Nai Become a member of WTO since 2007, with the perfection of the legal system policies, business environment gradually improved, Vietnam has had a great opportunity to attract foreign investment as FDI & ODA Furthermore, many construction, hydropower, thermal power, railway, petroleum, traffic, infrastructure, civil engineering projects from government capital implemented Along with this, the demand on steel products such as fasteners, cable wires, rails products… also increased However, in recent year, it has to face with much more competition, there are more and more trading companies doing the same business with Tan Co JSC |Page with strong capacity of finance Beside, the economic recession influenced the investment and consumption Some traditional products as fasteners, cable wires for bridge and building are imported from Thailand, Malaysia, China and gave the huge turnover volume for company, however, the 03 recent years, the turnover going down rapidly The sale revenue of fastener products decreased from 92.24 billion VND in 2009 to 75.30 billion VND in 2010 and 58.09 billion VND in 2011 (decrease from 18-23% every years) The sale revenue of cable wire products decreased from 129.56 billion VND in 2009 to 114.02 billion VND in 2010 and 90.46 billion VND in 2011 (decrease from 12-21% every years) Some important customers left company and move orders to the competitors because of many reasons such as product quality, sale force lack professional, order handling, consulting and technical service are not good There were not any research of company about this problem before and the nonofficial survey is not enough for Tan Co JSC to find out reasons why customers left the company and what customers expect about the company’s products and services Because of above reasons, I choose the topic to the research with the hope of finding shortcomings in satisfying customers in recent times and have solutions to enhance level of customer satisfaction as well as their loyalty in the future 1.2 Research Objectives My master thesis aims to find out the solutions to improve and enhance the customer satisfaction at Tan co Consulting and Trading Joint Stock Company There are some specific objectives following: - To review relevant concepts and theories related to the industrial customer satisfaction - To provide a brief profile about the major and target customers of Tan co JSC - To analyze and evaluate customer satisfaction at Tan co JSC - To provide recommendations to improve customer satisfaction at Tan co JSC ... Customer Satisfaction at Tan co JSC .43 4.2.1 Customer satisfaction with products at Tan Co JSC .46 4.2.2 Customer satisfaction with salespeople at Tan Co JSC 48 4.2.3 Customer satisfaction. .. product-related information at Tan Co JSC 49 4.2.4 Customer satisfaction with order handling at Tan Co JSC: 50 4.2.5 Customer satisfaction with technical services at Tan co JSC: 51 4.2.6 Customer satisfaction. .. staffs at Tan co JSC 52 4.2.7 Customer satisfaction with complaint handling at Tan co JSC 53 4.3 Summary of Customer Satisfaction at Tan co JSC 54 CHAPTER 5: RECOMMENDATIONS