1

A
Project Report
On
A STUDY ON CUSTOMER RETENTION TOWARDS 3M
PRODUCTS IN PUNE CITY
A report submitted in partial fulfillment of the
Requirements of

MASTER OF BUSINESS ADMINISTRATION (MBA)

(Class of 2016)

Submitted by
Vilas Tamboli

MASTER OF BUSINESS ADMINISTRATION (MBA)

Under the Guidance of

Prof: Abhijeet Saymote
 2

A
PROJECT REPORT ON
A STUDY ON CUSTOMER RETENTION TOWARDS 3M
PRODUCTS IN PUNE CITY

SUBMITED BY: Vilas Tamboli

Internal Guide External Guide

Under the guidance of
Prof: Abhijeet Saymote Anil Mane
 3

UNIVERSITY OF PUNE

A
PROJECT REPORT ON

A STUDY ON CUSTOMER RETENTION TOWARDS 3M

PRODUCTS IN PUNE CITY

A report submitted in partial fulfillment of the requirements of

MASTER OF BUSINESS ADMINISTRATION (MBA)

(Department: Marketing)

(2014- 2016)

Lotus Business School, Pune

 4

DECLARATION
I Vilas Tamboli, a student of MBA 2nd Year (2014- 2016) LotusInstitute of Business Studies,
Pune, solemnly declare that the project report Customer retentiontowards the 3M product in
Pune city. Was carried out by me in partial fulfillment of M.B.A Program as per the guideline
of the Pune University and its rules and norms.

It is my original work and is not submitted to any other organization for any other purpose.

DATE:
 5

CERTIFICATE
This is to certify that the project work entitled,

A STUDY ON CUSTOMER RETENTION TOWARDS 3M

PRODUCTS IN PUNE CITY
Submitted by

Vilas Tamboli

In partial fulfillment of the requirement for the degree of MASTER OF BUSINESS

ADMINISTRATION of University of Pune, has been carried out under the guidance and
supervision of Abhijeet Saymote Professor at Lotus Institute of Business Studies School, Pune-
411033.

Date: Project Guide

Place: Pune. Prof: Abhijeet Saymote

 6

TABLE OF CONTENTS

Sr.no. Particulars Page. No

Acknowledgment 5

Executive Summary 6

1 Introduction 9

1.1 Objectives 10

1.2 Limitations 11

1.3 Introduction to Topic 12

1.4 Industry Profile

2 Review of Literature 14

3 Research Methodology 21

4 Data Analysis 24

5 Findings 41

6 Recommendations & suggestion 42

7 Conclusion 45

8 Bibliography 46

9 Annexure 47
 7

DECLARATION
To,

The Director,

Lotus Business School,

Punawale,

Pune 411033

Respected Sir,

I the undersigned hereby declare that the project entitled CUSTOMER

RETENTION TOWARDS 3M PRODUCTS IN PUNE CITY is an
original work developed and submitted by me under the guidance of Prof. Abhijeet
Saymote sir.

The empirical findings in this project are not copied from any report and are true
and best of my knowledge.

DATE:

PLACE:

ROLL NO.

Signature of student

Vilas Krishnarao Tamboli

 8

ACKNOWLEDGEMENT

I would like to express our sincere gratitude towards Mr. Charudatta Bodhankar sir
Director, Lotus Business School for the guidance provided.

I also thank my Company Guide Mr. Anil Mane sir this project would no, have reached
its end without the supervision and direction which he gave and for spending his valuable time
and energy in guiding me throughout this project and for certifying me of my successful
completion of the project report.
Customer retention towards 3M Products In Pune City
I would also like to thank my Project Guide Prof. Abhijeet Saymote sir for guiding me
throughout this Project and giving it the present shape. It would have been impossible to
complete the project, without their support, valuable suggestions, criticism, encouragement and
guidance.

I convey my gratitude also to Dr. Sanjay Mishra Sir, Head of Department for his motivation and
providing various facilities, which helped me greatly in the whole process of this Project.

I am also grateful for all other teaching and non-teaching staff members of the Department for
directly or indirectly helping me for the completion of this project and the resources provided.
 9

Executive Summary
The project was primarily focused on to the finding and understanding the current
customer retention level on the 3M Products

The area under survey covered were those falling under the Pune city. The population
under consideration was mainly comprised of architects, builders & contractors. The customer
base in this area being tech survey is very much retention about products of 3M India Limited
Wood Utility Division. So, the major focus was to find the retention, understanding and reach
about the 3M products

The project study was based upon the Customer retention for the 3M Products. This
included knowledge about various types of 3M products, features offered etc. the study findings
were to be utilized by the company in formulating better promotion policies in near future.

The project is titled as Customer Retention towards 3M Products. Customer is the key
element if company is taken into consideration, as it is an infrastructure industry and products
provided are tangible, so focus on Customer retention of the product helps in the success of the
company.
 10

CHAPTER-I

INTRODUCTION
 11

Objectives
1. To check the Retention after sales services of customers
2. To know the Customers product recommdation
3. Understand the customers problem.
4. Maximize customer satisfaction for current customers.
5. Identify dissatisfied customers before they leave through a customer retention program.
6. Measure why current customers leave.
 12

LIMITATIONS

Acquiring large places in very limited time was the biggest difficulties in market
regions to promote 3M products.
Awareness of product in particular regions was very hard to make purchase about 3M
products.
Time Resources was the problem in particular regions because regions were big and
congestions.
 13

Introduction Of Project Topic

The project was primarily focused on to the finding and understanding the customer retention
level on the 3M Products.

The area under survey covered were those falling under the Pune City. The population
under consideration was mainly comprised of architects, builders & contractors. The customer
base in this area being tech survey is very much aware about products of 3M India Limited
Wood Utility Division. So, the major focus was to find the retention, understanding and reach
about the 3M products

The project study was based upon the Customer retention for the 3M Products. This
included knowledge about various types of 3M products, features offered etc. the study findings
were to be utilized by the company in formulating better promotion policies in near future.

The project is titled as A Study on Customer Retention towards 3M Products In

Pune City. Customer is the key element if company is taken into consideration, as it is an
infrastructure industry and products provided are tangible, so focus on customer retention
towards its products helps in the success of the company.

Scope:
This report can be used by company in improvement of policy formulation for enhancing
sales promotion.
It can be used as starting script for carrying out in depth research on sales promotions for
various products.
It can be used in designing better marketing& promotion strategies
It can be used as a reference report for giving training to marketing managers.
It can be used to train prospective researchers for behavior researches.
 14

CHAPTER- II
INDUSTRY PROFILE
 15

COMPANY PROFILE - 3M INDIA LTD.

3M is a diversified technology company serving customers and communities with

innovative products and services. Each of our businesses are committed to making our customers
lives easier and better.

3M India Limited, the Indian subsidiary of 3M Corporation was established in 1988. 3M

has been a steadfast partner in Indias progress for over 24 years, committed to solving problems
unique to the Indian customer. The Managing Director at 3M India is Mr. Amit Laroya.

3M Electro & Communications India Pvt. Ltd. is a privately owned subsidiary of 3M

Corporation. Together, these two companies market over 7,000 products in India with leading
positions in health care, industrial, retail, construction, transportation, energy, utilities, mining,
general office and home. In India, the magic of 3M innovation takes places at our R&D centers,
situated at Bengaluru and Gurgaon, NCR (National Capital Region). Our manufacturing facilities
in India are at Bengaluru, Pimpri (Pune), Ranjangaon (Pune), Ahmedabad & Pondicherry.

3M Businesses in India

Consumer & Office

From simplifying life at home to keeping you organized at work; simplifying life and
work.

Display & Graphics

From signs on the road to the images on your phone; enhancing visual communication
and interactivity.

Electro & Communications

From connecting the worlds power grid to supporting high-tech electronic devices;
enabling tomorrows lifestyle today with electrical power, communications and
electronics.
 16

Health Care
From preventing infections to making smiles brighter; promoting health and improving
quality care.

Industrial and Transportation

From underground to outer space, changing how industry works.

Safety, Security & Protection Services

From protecting information to protecting people at work and at play; protecting people
and facilities.
 17

3M in India

Date of Establishment 1988

Revenue US$ 30.871 billion (2013)
Market Cap 59266.659777 ( Rs. in Millions )
Plot No 48-51,Electronic City,Hosur RoadBengaluru-
Corporate Address 560100, Karnataka
Management Details Chairperson -
MD - Amit Laroya
Directors - Ajay Nanavati, Albert C Wang, Amit
Laroya, Ashish Khandpur, B C Prabhakar, B S Iyer, B
V Shankaranarayana Rao, B V Shankaranarayanan
Rao, BirenGabhawala, BV Shankaranarayana Rao, D J
Balaji Rao, Frank R Little, IppoVrohidis, John R
Houle, Jose Varela, K Ramesh Chandra, K Vijay
Kumar, Richard Lee Becker, SadhanaKaul, V
Srinivasan, ZinanWadood
Background Diversified
Business Operation
3M is fundamentally a science-based company. They
produce thousands of imaginative products, and we're a
leader in scores of markets - from health care and
highway safety to office products and abrasives and
adhesives. Their success begins with their ability to
apply their technologies - often in combination - to an
endless array of real-world customer needs. All of this
is made possible by the people of 3

Total Income - Rs. 17622.857 Million ( year ending

Financials Mar 2015)
Net Profit - Rs. 429.902 Million ( year ending
Mar 2015)
Company Secretary V Srinivasan
Bankers HSBC Bank, JP Morgan Chase Bank
Auditors

Lovelock & Lewes, Lovelock & Lewes, Lovelock & Lewes

 18

Regd. Office
Address Plot No.48-51, Electronics City,
District Bangalore
State Karnataka
Pin Code 560100
Tel. No. 080-28520203
Fax No. 080-28520576
Email : 3Mindia.investorshelpdesk@mmm.com Internet : http://www.3M.com/in

3M INDIALEADERSHIP

Sr.No. Name Designation

2 Amit Laroya
1 V Srinivasan
4 Albert C Wang
3 SadhanaKaul
5 BirenGabhawala
6 B S Iyer
7 B C Prabhakar
8 BV Shankaranarayana Rao
Managing Director
Company Secretary
Non Executive Director
Non-Executive Director
Additional Director
Non Executive& Independent Director
Non Executive& Independent Director
Whole Time Director
 19

Review of Literature
Topic: - Study of Customer Retention of 3M Products
The influence of satisfaction, trust and switching barriers on customer retention in a continuous

purchasing setting: - By: -http://www.emeraldinsight.com/doi/abs/10.1108/09564230310489231

Author(s):
ChaturaRanaweera (School of Business, Wilfrid Laurier University, Waterloo, Ontario, Canada)
JaideepPrabhu (Judge Institute of Management, University of Cambridge, Cambridge, UK)

Customer Retention

Customer retention is the activity that a selling organization undertakes in order to

reduce customer defections. Successful customer retention starts with the first contact an
organization has with a customer and continues throughout the entire lifetime of a relationship

By definition customer retention is the activity a company undertakes to prevent customers from
defecting to alternative companies. Successful customer retention starts with the first contact and
continues throughout the entire lifetime of the relationship.

What Are the Benefits of Customer Retention?

Increased revenue
Lower customer acquisition costs
Increased referrals
 20

Customer Retention:

Adopts a holistic approach that examines the combined effects of satisfaction, trust and
switching barriers on customer retention in a continuous purchasing setting.Argues that such an
approach helps uncover hitherto neglected effects on retention and, in the process, unveils more
cost effective ways of retaining customers. Drawing on this framework develops several
hypotheses regarding the main and interaction effects of customer satisfaction, trust and
switching barriers on retention. Tests these hypotheses on data from a largescale mail survey of
fixed line telephone users in the UK, finding that both customer satisfaction and trust have strong
positive effects on customer retention. Contrary to some assertions in the literature, however,
finds that the effect of trust on retention is weaker than that of satisfaction. Nevertheless, the
interaction between trust and satisfaction also has a significant effect on retention, indicating that
building both customer satisfaction and trust is a superior strategy to a focus on satisfaction
alone. Qualitative evidence from the survey offers further support for this finding. Even a
satisfying service recovery process might be inadequate to prevent loss of trust, with
significant implications for future consumer behaviour. Finally, the results show that switching
barriers have both a significant positive effect on customer retention as well as a moderating
effect on the relationship between satisfaction and retention. While service providers may be able
to retain even dissatisfied customers who perceive high switching barriers, argues that ideally,
firms should aim at a combined strategy that makes switching barriers act as a complement to
satisfaction.
 21

3M Businesses in India

Consumer&Office
From simplifying life at home to keeping you organized at work; simplifying life and
work.

Display&Graphics
From signs on the road to the images on your phone; enhancing visual communication
and interactivity.

Electro&Communications
from connecting the worlds power grid to supporting high-tech electronic devices;
enabling tomorrows lifestyle today with electrical power, communications and
electronics.
HealthCare
From preventing infections to making smiles brighter; promoting health and improving
quality care.

IndustrialandTransportation
From underground to outer space, changing how industry works.

Safety, Security & Protection Services

From protecting information to protecting people at work and at play; protecting people
and facilities.
 22

CHAPTER-III
RESEARCH
METHODOLOGY
 23

Objectives
1. To check the Retention after sales services of customers
2. To know the Customers product recommdation
3. To understand the customers problem.
4. To maximize customer satisfaction for current customers.
5. To identify dissatisfied customers before they leave through a customer retention program.
6. To Measure why current customers leave.

Research Design

Descriptive

In this project, I gave information to customers about our products and create awareness as well
as retention about the product among them have given them Demo also.

It is convenient to me for collecting data of 100 people.

Sampling Design

Sample size is 100

The sample size 100 is convenient because daily i gave demo to 10-15 people but only few of
them are interested.

Sampling Technique: Convenience Technique

I have selected this technique because my target customers were Carpenter, Architecture and
Interior Designer and they always visits hardware shops for purchasing. So I made stall on
different retail shops to demonstrate them and make awareness about my product.
 24

Data Sources

1) Secondary Data

a) Company Project
b) Internet

2) Primary Data:

a) Questionnaire
b) Personal Interview

LIMITATIONS

Acquiring large places in very limited time was the biggest difficulties in market
regions to promote 3M products.
Awareness of product in particular regions was very hard to make purchase about 3M
products.
Time Resources was the problem in particular regions because regions were big and
congestions.
 25

CHAPTER-IV
DATA ANALYSIS
 26

1) Did you ever use its products?

Particular Respondents Percentage

Always 40 40%
Sometimes 30 30%
Rarely 25 25%
Never 5 5%

Never Sales
5% particular
0%

Rarely
25% Always
40%

sometimes
30%

Interpretation:-

From the above can see figure, Customers use of our 3M product.
Always because they like our product quality
Sometimes because price problem
Rarely because they use in urgency
Never because some of the customer are customers
 27

2) Which product do you used mostly?

Particulars respondents Percentages

MMT 32 32%
Spray Adhesive 57 57%
High strength bonding tape 11 11%

High strength respondents

bonding tape
11%

MMT
32%

Spray Adhesive
57%

Interpretation:-

Form the above figure we can say that WW20 spray is used mostly.
Because spray is used for plywood & laminates thats why its mostly used,
Rather than MMT & HSBT is used rarely because it is used for special
purpose.
 28

3) How do you rate the quality of products?

Particulars Respondents Percentages

Poor 0 0%
Fair 0 0%
Good 50 50%
Excellent 50 50%

poor respondants
fair
0%
0%

Excellent good
50% 50%

Interpretation:-

From the above figure we can say that 50% customers believe that quality is good
and reaming 50% thing its excellent.
 29

4) Are you satisfied with the service provided by 3M India LTD?

Particular Respondents Percentages

Fully satisfied 23 23%

Partially satisfied 27 27%
Dissatisfied 15 15%
Satisfied 35 35%

Respondents

Fully satisfied
Satisfied
23%
35%

Partially satisfied
27%

Dissatisfied
15%

Interpretation:-

From the above figure we can say that 35% customers are satisfied because its
service provided by 3M India LTD, fully satisfied because of their customer
problem solved. Rather than partially satisfied & dissatisfied because their
problems are not fully solved.
 30

6) Based on your experience with 3M product, how likely are you to buy 3M
product again?

Particulars Respondents Percentages

Definitely will 30 30%
Probably will 10 10%
Might or might not 20 20%
Probably will not 30 30%
Definitely will not 10 10%

respondents
Definitely will not
10%

Definitely will
30%
Probably will not
30%

Probably will
Might or might not
10%
20%

Interpretation:-
From the above figure we can say that 30% experience likely to buy 3M product
again because of their quality matters a lot, And remaining others probably not
because of their problem where not solved .
 31

7) If you contacted 3M customer service, have all problems been resolved to

your complete satisfaction?
particulars respondents Percentages
Yes, by the company or 45 45%
its representatives.
Yes, by me or someone 35 35%
outside the company

No, the problem was not 20 20%

resolved

respondents

No, the
problem
was not
Yes, by the
resolved
company or its
20%
representatives
.
Yes, by me or 45%
someone
outside the
company
35%

Interpretation:-
From the above figure we can say that 45% customers problem got there problem
solution and remaining others have their own issue about it.
 32

8)Based on your experience with 3M, would you recommend this product to
a friend?
Particulars Respondents Percentages

Definitely will 55 55%

Probably will might 25 25%

Might or might not be 20 20%

Probably will not 0 0%

Definitely will not 0 0%

Probably will not Respondents Definitely will not

0% 0%

Might or
might not
20%

Probably will Definitely will

Might 55%
25%

Interpretation:-
From the above figure we can say that 55% customers will recommend 3M product
to their friends/relative/associate, 25% will not fully recommend but probably will
recommend and remaining others have their own issue to buy.
 33

9) If you would like to share any additional comments or experiences about 3M

product, please enter them below?

Particulars Respondents Percentages

Experience 70 70%

Comments 30 30%

Respondents

Comments
30%

Experience
70%

Interpretation:-
From the above figure we can say that 70% customer have share their experience
and reaming 30% have comment on it.
 34

CHAPTER-VI
FINDINGS AND
CONCLUSION
 35

FINDINGES OF THE STUDY

1. Customers are satisfied with spray due to quality.

2. Awareness of new product is very low in retail outlets in pune city.
3. Due to transportation problem retailer dont have stock.
4. For new product market potential is big.
5. Customers are not happy with offers.

SUGGESTIONS AND RECOMMENDATIONS

1. They should provide stock to all retailers.
2. Give update to customers about current offers on 3M product.
3. For new product advertising & demonstration is Important.
4. Take follow-up of distributors & retailers.
 36

CONCLUSION

3M is a very successful and well reputed company in the industrial area. The customers
of 3M are mostly satisfied with the product provided by 3M.

There is some dissatisfaction of the customers about product because the price of the
product is high. 3M is a pioneer in its field and keeps it employees motivated and
satisfied, I see a bright and successful future for this company.
 37

BIBLIOGRAPHY
 38

Bibliography

Websites
www.indianinfoline.com
www.info.shine.com
www.solutions.3mindia.co.in
www.wikipedia.com
http://www.emeraldinsight.com/doi/abs/10.1108/09564230310489231

1) Principles of Marketing
Twelfth Edition
Topic: Customer Retention towards 3M Product
Philip Kotler, Gray Armstrong
Published by Dorling Kindersley (India) Pvt. Ltd. Licensees of Pearson education in
south Asia
Page no. 137-145

2) Research Methodology
(Methods of techniques)
Topic: Research design
Second revised Edition
New age international publisher
Page no. 31- 67
 39

CHAPTER VII
ANNEXURE
 40

1. Based on your experience with 3M product, how likely are you to buy 3M product again?

Particular Respondents Percentage

Always 40 40%
Sometimes 30 30%
Rarely 25 25%
Never 5 5%

2. Did you ever use its products?

particulars respondents Percentages
MMT 32 32%
Spray Adhesive 57 57%
High strength bonding 11 11%
tape

3. How do you rate the quality of products?

Particulars Respondents Percentages
Poor 0 0%
Fair 0 0%
Good 50 50%
Excellent 50 50%

4. How often do you typically use the product?

Particular Respondents Percentages

Fully satisfied 23 23%

Partially satisfied 27 27%
Dissatisfied 15 15%
Satisfied 35 35%
 41

5. Are you satisfied with the service provided by 3M India LTD?

Particulars Respondents Percentages
Definitely will 30 30%
Probably will 10 10%
Might or might not 20 20%
Probably will not 30 30%
Definitely will not 10 10%

6. If you contacted 3M customer service, have all problems been resolved to your complete
satisfaction?
particulars respondents Percentages
Yes, by the company 45 45%
or its representatives.
Yes, by me or 35 35%
someone outside the
company

No, the problem was 20 20%

not resolved

7. Based on your experience with 3M product, how likely are you to buy 3M product again?
particulars respondents Percentages
Yes, by the company 45 45%
or its representatives.
Yes, by me or 35 35%
someone outside the
company

No, the problem was 20 20%

not resolved
 42

8. If you would like to share any additional comments or experiences about 3M please enter
them below?

Particulars Respondents Percentages

Experience 70 70%
Comments 30 30%