Investigating CRM application within the South African FMCG industry

Steenkamp, Ernst Nicholas (2010-03)

Thesis (MBA (Business Management))--University of Stellenbosch, 2010.

Thesis

ENGLISH ABSTRACT: The aim of this study was to investigate CRM application in South Africa with specific reference to the FMCG industry in this country. The research started off with a literature review of CRM with reference to its failures and successes as well as the advantages and disadvantages of the system, furthermore the requirements for a successful CRM system were investigated. Interviews were also held with industry experts to gain insights into CRM application in South Africa. The study found that, although the FMCG industry in South Africa is based on the B2B route to market and not on the B2C route to market, CRM still has the potential to add value to the organisation. In addition, the failures of CRM are not industry-specific but common across industries. There are a vast number of reasons for the failure of CRM, ranging from CRM’s exclusion from the company strategy to a lack of change management and a lack of end-user involvement in the implementation of the system and process. Although it would seem that CRM fails more than it succeeds it is not due to the system itself but to human nature and reluctance to change. The research clearly illustrates that CRM fails as a result of human decisions and the disadvantages posed by the system. It is clear that CRM starts with the organisation’s strategy. If CRM complies or fits in with the strategy of the company it will succeed. What’s more, CRM has to be driven from top management down. Lastly, CRM will work for the FMCG industry of South Africa and will add value to any organisation dealing with customers. However, this will only be realised if the organisation follows a customer-centric approach and if CRM is not seen as an IT project but rather as part of the organisational culture.

AFRIKAANSE OPSOMMING: Die doel van hierdie studie is om die toepassing van CRM (kliënteverhoudings-bestuur – customer relationship management) in Suid-Afrika te ondersoek met spesifieke verwysing na die bedryf vir vlot verkoopbare verbruikersgoedere (FMCG – fast-moving consumer goods) in dié land. Die navorsing het met ’n literatuuroorsig van CRM begin met verwysing na die mislukkings, suksesse en die voor- en nadele van die stelsel. Die vereistes vir ’n suksesvolle CRM-stelsel is ook ondersoek. Daarby is onderhoude met kundiges in die bedryf gevoer om insig in die toepassing van CRM in Suid-Afrika te verkry. Die studie het bevind dat hoewel die FMCG-bedryf in Suid-Afrika op die B2B roete na mark en nie op die B2C roete na mark gegrond is nie, het CRM steeds die potensiaal om waarde tot die organisasie toe te voeg. Daarby is die gebreke van CRM nie bedryfspesifiek nie maar kom dit algemeen by alle bedryfsrigtings voor. Die talle redes vir die mislukkig van CRM wissel van die uitsluiting van CRM van die maatskappy se strategie tot by ’n gebrek aan veranderingsbestuur en ’n gebrek aan eindgebruiker-betrokkenheid in die implementering van die stelsel en die proses. Hoewel dit voorkom of CRM meer misluk as wat dit slaag, is dit nie die gevolg van die stelsel self nie maar van die menslike aard en onwilligheid om te verander. Die navorsing toon duidelik aan dat CRM as gevolg van menslike besluite en die nadele van die stelsel misluk. Dit is duidelik dat CRM by die organisasie se strategie begin. Indien CRM aan die maatskappystrategie voldoen of daarby inpas, sal dit slaag. Daarby moet CRM deur topbestuur van bo af gedryf word. Laastens sal CRM vir die FMCG-bedryf in Suid-Afrika werk en waarde tot enige organisasie toevoeg wat met kliënte werk. Dit sal egter net realiseer indien die organisasie ’n kliëntgesentreerde benadering volg en indien CRM nie as ’n IT-projek nie maar as deel van die organisasie se kultuur gesien word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/1020
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