Market Research Report : Crm market in india 2015 - Sample

CRM Market – India

July 2015

2 CRM MARKET IN INDIA 2015.PPT

Executive Summary

Market

Drivers and Challenges

Trends

Competition

CRM market in India is valued at ~ INR x bn in 2014 and is estimated to grow at a CAGR of ~ x% over 2014-

19e

In terms of CRM adoption, South Indian cities are showing signs of healthy adoption rates followed by North

Indian cities

Demand for Transparency

Emergence of Mobile CRM

Drivers

– Improved Customer Relationship and Operational

Advancement

– Growth of Online Retailing

– Global Competence

– Significant Cost Reduction

Challenges

– Implementation Challenges 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 Macroeconomic Indicators (3/3)

Lending Rate: Annual

x x x x x x x x x x x x %

Per Annum

2014-15 y4

x4

2013-14 y3

x3

2012-13 y2

x2

2011-12 y1

x1

Max Min

Trade Balance: Annual

Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All Commercial Banks including SBI) - Minimum Rate General

N.B.: 2012-13 encompasses figure for Apr – Nov 2012

FDI: Annual

D

C

B

A

INR

tn

2014-15

x4

2013-14

x3

2012-13

x2

2011-12

x1

D

C

B

A

INR bn

2013-14

y4

2012-13

y3

2011-12

y2

2010-11

y1


SAMPLE CRM Adoption Process

X • X

X • X

X • X

X • X

X • X


SAMPLE Over the years, CRM has evolved from point solution to 360 degree enterprise-wide initiative in India

CRM Market Overview - India

X

X

X

X

X

0

2018e

a5

2017e

a4

2016e

a3

2015e

a2

2014

a1

INR bn

X

2019e

a6

• XX

• XX

• XX

• XX

x

z

y

Others Salesforce Oracle

Top 2 players are holding

~a% share in the CRM market


SAMPLE CRM Adoption Rate among Organization of all Size

• XX • XX • XX

Organization Type Service Industry Product Industry

X

X

X

X-X%

X-X%

X-X%

X-X%

X-X%

X-X%


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

Business Challenge ICT Spending

X

X

X

X

X

X

X

X

X

X

0

bn

2018e

Y

2014e

X

Business Challenge ICT Spending

Breakup

X

X

X

X

X

X

X

X

X

X

0 X

X

X

2014e

100.0%

Software Licensing and SaaS

Hardware

IT Services

• XX

• XX

• XX

• XX

Spending on IT service (implementation,

support and training) and Software Licensing

and SaaS: XX%


SAMPLE SMB CRM spending share in the overall SMB software spending

Business Challenge CRM Market India

Segmentation Business Challenge IT Software

Spending - SMBs

0 10 20 30 40 50 60 70 80 90

2014 XX X Y

bn

CRM spending Others

• XX

• XX

• XX

• XX

X

Y

Large Business Small and Medium Business

Note: Base figure = INR X bn


SAMPLE

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

• XX

XX

• XX

XX

CRM Implementation Benefits

Some potential benefits of CRM implementation

Benefits Description

X X

X X

X X

X X


SAMPLE CRM Selection Criteria (X/X)

Deciding Factors

IT Manpower

• XX

Customizability and Integration with other Solutions

• XX

User Volume

• XX


SAMPLE Enhancement of customer care operations is catalyzing CRM adoption

Improved Customer Relationship and Operational Advancement Impact

• XX

• XX

• XX

• XX

• XX

• X

• X

• X

• X

X

• X

• X

• X

• X

X


SAMPLE CRM solutions are used by various highly reputed and respected companies around the globe

Global Competence Impact

• XX

Expansion

•X

Achieving Global Standard

•X

Operational Efficiency

•X


SAMPLE …hinder its adoption in India

Implementation Challenges and Operational Cost (x/x)

Vendor Name Cost Structure* (Per month/user)

X X X X

X X X

X X

X X X X

X X X X

X X X X

Note: *Data as of August 2013, Other details have been taken from the website; May vary depending on the requirement SAP does not provide stand alone CRM generally, and it requires a minimum of 15 user subscription Sugra CRM: Price based on an annual subscription with a minimum of five users


SAMPLE Social CRM offers open-ended interaction among employees and numerous consumers in the social networks

Introduction of Social CRM

Social CRM is gaining popularity

• X

• X

• X

Social CRM

X

X

X

X

X

X

Traditional CRM

Social CRM

Participant Process and Channel Time of Interaction

Social CRM

Traditional CRM

Social CRM

• X

• X

• X

• X


SAMPLE Cloud Computing is catching up with the Software-as-a-Service (SaaS) CRM solution

Rising Cloud-based CRM Adoption (x/x)

Many companies are now implementing on demand CRM for better results

• X

• X

• X

Company A

• X

• X

• X

• X

Company B

• X

• X

• X

• X

Company C


SAMPLE Case Study 1

Case: X saves time, increases revenues using SMART CRM Desk CRM

Solution Requirements Benefit

• X • X • X • X • X

• X • X • X • X • X

• X • X • X • X • X

Technology Used

XX

Client Organization IT Vendor

X X

Industry

X


SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • X

Bargaining Power of Buyers • X

Threat of New Entrants • X

Impact X

Impact X

Impact X

Bargaining Power of Suppliers • X

Impact X

Threat of Substitutes • X

Impact X


SAMPLE Key Ratios of 3 Major Private Companies – Operational Basis (FY 2014) (x/x)

Competitive Benchmarking (3/3)

x

x

x

x

x

Oracle

x

SAP

x

Salesforce

x

Asset Turnover Ratio

• XX

• XX

• XX

x

x

x

x

x

x3

SAP

x2 x1

Salesforce

x3

x2

x1

Oracle

x3 x2 x1

Debtors Turnover Ratio

2012 2014 2013


SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address X

Tel No. X

Fax No. X

Website X

Year of Incorporation X

Ticker Symbol X

Stock Exchange X

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

Head Office Pune

Name Designation

X X

X X

X X

X X

Note: The list of products and services is not exhaustive

Category Products/Services

Amdocs Products X


SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR 26.1 bn in FY 2014, as compared to net profit of INR 25.8 bn in FY 2013

• The company reported total income of INR 220.9 bn in FY 2014, registering an increase of 5% over FY 2012

• The company earned an operating margin of 13.89% in FY 2014, a decrease of 0.48 percentage points over FY 2013

• The company reported debt to equity ratio of 0.06 in FY 2014, an increase of 1.26 per cent over FY 2013

Key Financial Performance Indicators

Indicators Value (23/06/2014) Market Capitalization (INR mn) 546029.19

Total Enterprise Value (INR mn) 465229.2

EPS 2.88

PE Ratio 19.64

Particulars y-o-y change

(2014-13) 2014 2013 2012 2011

Profitability Ratios

Operating Margin -0.48 13.89% 14.37% 13.57% 12.70%

Net Margin -0.48 11.83% 12.31% 12.00% 10.89%

Profit Before Tax Margin -0.47 13.72% 14.19% 13.54% 12.43%

Return on Equity -0.16 12.43% 12.59% 12.90% 11.47%

Return on Capital Employed -0.06 12.44% 12.50% 12.36% 11.15%

Return on Working Capital 0.65 40.52% 39.87% 45.36% 41.77%

Return on Assets -0.22 9.56% 9.78% 9.53% 8.72%

Return on Fixed Assets -3.23 171.53% 174.76% 159.22% 156.49%

Cost Ratios

Operating costs (% of Sales) 0.48 86.09% 85.61% 86.37% 87.28%

Administration costs (% of Sales)

-0.02 12.49% 12.51% 13.08% 12.89%

Interest costs (% of Sales) -0.01 0.10% 0.11% 0.10% 0.09%

Liquidity Ratios

Current Ratio -4.97% 2.02 2.12 1.92 1.96

Cash Ratio -3.92% 1.19 1.23 1.05 1.16

Leverage Ratios

Debt to Equity Ratio 1.26% 0.06 0.06 0.07 0.08

Debt to Capital Ratio 1.18% 0.06 0.06 0.06 0.08

Interest Coverage Ratio 5.13% 142.33 135.38 139.39 140.34

Efficiency Ratios

Fixed Asset Turnover 1.57% 12.33 12.14 11.68 12.30

Asset Turnover 1.18% 0.69 0.68 0.70 0.69

Current Asset Turnover 0.27% 1.47 1.47 1.59 1.61

Working Capital Turnover 5.17% 2.91 2.77 3.33 3.28

Capital Employed Turnover 2.64% 0.99 0.96 1.00 0.97

Improved Decline

Net Profit/Loss Total Income

30

20

300

10

0

200

100

0

INR bn INR bn

2014

26.1

220.9

2013

25.8

209.6

2012

20.7

172.4

2011

17.0

156.3


Note: Financials of the parent company (Amdocs Ltd. NYSE:DOX) has been provided


SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview X

Launch X

Acquisition X

100%

50%

0%

2014

220,625

73% 70% 72% 73%

17%13%12%14%13%

0%

50%

100%

2014

15%

2013

16%

2012 2011

14%

Rest of the World Europe North America


X

Providing Integrated Products and Services


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

• X •X

• X • X

T O

W S


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

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

X X Name Designation

X X

X X

Corporate Address X

Tel No. X

Fax No. X

Website X

Year of Incorporation X

Note: The list of products and services is not exhaustive

Delhi

Head Office


SAMPLE Shareholders of the Company Ownership Structure

Name No. of Shares held

X X

X X

X X

100%

Foreign Holdings

Note: Shareholding pattern as on AGM dated 29th Sep 2014

Private: Foreign Company – Company B(2/5)


SAMPLE Private: Foreign Company – Company B(3/5)

Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR 681.1 mn in FY 2014 as compared to net profit of INR 590.1 mn in FY 2013

• The company reported total income of 7,925.4 mn in FY 2014, registering an increase of 17% over FY 2013

• The company earned an operating margin of 12.26% in FY 2014 a decrease of 0.92 percentage points over FY 2013

• The company reported a current ratio of 0.84% in FY 2014 registering a decrease of 27.48% over FY 2013

Particulars y-o-y change

(2014-13) 2014 2013 2012 2011

Profitability Ratios

Operating Margin -0.92 12.26% 13.18% N.A. N.A.

Net Margin -0.15 8.59% 8.74% N.A. N.A.

Profit Before Tax Margin -0.92 12.26% 13.18% N.A. N.A.

Return on Equity -0.97 17.82% 18.78% N.A. N.A.

Return on Capital Employed -2.90 25.42% 28.33% N.A. N.A.

Return on Working Capital -801.48 -375.32% 426.16% N.A. N.A.

Return on Assets -2.11 15.24% 17.35% N.A. N.A.

Return on Fixed Assets -9.05 23.66% 32.71% N.A. N.A.

Cost Ratios

Operating costs (% of Sales) 0.92 87.74% 86.82% N.A. N.A.

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity Ratios N.A.

Current Ratio -27.48% 0.84 1.16 2.07 N.A.

Cash Ratio -47.10% 0.23 0.43 0.55 N.A.

Leverage Ratios

Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.

Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency Ratios

Fixed Asset Turnover -22.24% 1.93 2.48 N.A. N.A.

Asset Turnover -5.59% 1.24 1.32 N.A. N.A.

Current Asset Turnover 30.49% 5.80 4.44 N.A. N.A.

Working Capital Turnover -194.66% -30.60 32.33 N.A. N.A.

Capital Employed Turnover -3.52% 2.07 2.15 N.A. N.A.

Improved Decline

800

600

400

200

0

8,000

6,000

4,000

2,000

0

INR mn INR mn

2014

681.1

7,925.4

2013

590.1

6,751.1

Net Profit/Loss Total Income


SAMPLE Business Highlights

Private: Foreign Company – Company B(4/5)

Description News

Overview X

Featured Adobe Products for CRM

X

Launch X

Strategic Partnership X

Acquisition X


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

• X • X

• X • X

T O

W S


SAMPLE X

Strategy Adoption Area

X

Regional Growth X

Strategic Recommendations (x/x)

• X

• X

• X

• X


Thank you for the attention

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Market Research Report : Crm market in india 2015 - Sample

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