Case Study Blog on Kataria Plastics Private Limited: Evaluating Service Quality Using the SERVQUAL Scale

 Case Study Blog on Kataria Plastics Private Limited: Evaluating Service Quality Using the SERVQUAL Scale

Abstract

Kataria Plastics Private Limited, a pioneer in the plastic manufacturing industry, has built a reputation for high-quality products and reliable service since its inception in 1996. This case study evaluates the company’s service quality using the SERVQUAL scale, focusing on five key dimensions: tangibles, reliability, responsiveness, assurance, and empathy. By analyzing these dimensions, we aim to identify the strengths and areas for improvement in Kataria Plastics' service delivery, offering actionable recommendations to enhance customer satisfaction and competitive advantage.

Company Background

Kataria Plastics Private Limited, established on 21 March 1996, operates as a private, non-government entity registered under the Registrar of Companies, Gwalior. The company’s primary business activity, classified under NIC code 252, involves the manufacture of plastic products. With an authorized share capital of Rs. 18,712,480 and a paid-up capital of Rs. 18,687,480, Kataria Plastics has demonstrated financial stability and a focused business strategy in the competitive plastics industry. Over the years, the company has carved a niche in the market by delivering consistent quality and fostering strong customer relationships.

Present Position of the Company

Kataria Plastics holds a significant position in the plastics manufacturing sector, catering to diverse industries, including packaging, automotive, and consumer goods. Key facts about the company include:

• Market Reach: Serving clients across India with a growing presence in export markets.
• Product Range: A versatile portfolio including high-density polyethylene (HDPE) products, polypropylene (PP) containers, and customized plastic solutions.
• Employee Strength: Over 200 skilled and semi-skilled workers, supported by a robust management team.
• Sustainability Initiatives: Adopting eco-friendly manufacturing practices and promoting recyclable plastic products.
• Customer Base: Includes major players in FMCG, automotive, and retail industries.

Introduction to the SERVQUAL Scale

The SERVQUAL scale is a widely used tool to measure service quality based on five key dimensions:

1. Tangibles - Physical facilities, equipment, and appearance of personnel.
2. Reliability - Ability to perform the promised service dependably and accurately.
3. Responsiveness - Willingness to help customers and provide prompt service.
4. Assurance - Knowledge and courtesy of employees and their ability to inspire trust and confidence.
5. Empathy - Caring, individualized attention the company provides its customers.

Application of SERVQUAL to Kataria Plastics

1. Tangibles: Kataria Plastics boasts a well-maintained manufacturing facility equipped with state-of-the-art machinery. The company’s focus on modernizing its equipment and maintaining an aesthetically pleasing environment reflects positively on this dimension. Customers frequently cite the professionalism of staff appearance and the cleanliness of the premises as indicators of the company’s high standards.

2. Reliability: Reliability has been a cornerstone of Kataria Plastics' reputation. The company consistently delivers high-quality plastic products on time, meeting client specifications. Its adherence to stringent quality checks ensures minimal defects, which reinforces customer trust and satisfaction.

3. Responsiveness: Kataria Plastics has implemented a responsive customer support system that addresses queries and complaints promptly. Recent feedback from clients highlights the company’s efforts to provide quick solutions to logistical and technical issues, demonstrating its commitment to customer service.

4. Assurance: The knowledgeable and courteous staff at Kataria Plastics inspire confidence among customers. Regular training programs ensure that employees are up-to-date with the latest industry practices, further enhancing their ability to provide reliable and trustworthy service.

5. Empathy: Kataria Plastics’ approach to customer relations emphasizes understanding individual client needs. Tailored solutions and personalized communication have positioned the company as a customer-centric organization. Clients appreciate the company’s proactive engagement and willingness to accommodate special requests.

Q Factor and Post-Sales Analysis

Kataria Plastics has consistently worked to improve its post-sales performance, as reflected in its Q Factor (Quality Factor) and post-sales analysis over the last eight years. The following table highlights key metrics:

Year	Customer Satisfaction (%)	Complaint Resolution Time (Days)	Repeat Business (%)	Product Defect Rate (%)
2016	85	5	70	2.5
2017	87	4.8	72	2.3
2018	89	4.6	75	2.0
2019	90	4.5	78	1.8
2020	92	4.3	80	1.5
2021	94	4.0	82	1.3
2022	96	3.8	85	1.1
2023	97	3.5	88	1.0

 REMARK: 2024 DATA are not available 

 

The graph below illustrates the trends in these metrics over the last eight years:

Additional Facts and 2024 Data

Financial Growth

• Revenue Growth: Kataria Plastics recorded a 10% year-on-year increase in revenue in 2023. Projected revenue for 2024 is ₹95 crores, driven by increased demand for sustainable plastic solutions.
• Profit Margins: Net profit margins have improved by 1.5% in 2023, with a projected rise to 18% in 2024 due to optimized supply chain management and cost-effective production methods.

Sustainability Initiatives

• Recycled Products: In 2024, the company aims to have 40% of its product line made from recycled materials, up from 30% in 2023.
• Carbon Footprint Reduction: By upgrading machinery, Kataria Plastics projects a 15% reduction in its carbon footprint by the end of 2024.

Customer Engagement

• Digital Outreach: Kataria Plastics launched a mobile app in early 2024 to provide real-time order tracking, customer support, and a feedback portal, which has already seen a 25% adoption rate among its clients.
• Loyalty Programs: A customer loyalty program introduced in late 2023, offering discounts and rewards for repeat business, has contributed to a 5% increase in client retention.

Employee Development

• Training Programs: Over 150 employees underwent advanced technical training in 2023. In 2024, the company plans to double this figure, focusing on digital tools and sustainable practices.
• Employee Satisfaction: Employee surveys from early 2024 indicate an 85% satisfaction rate, attributed to enhanced benefits and career growth opportunities.

Market Expansion

• Exports: Exports accounted for 20% of the revenue in 2023. In 2024, Kataria Plastics is targeting new markets in Southeast Asia, with partnerships under negotiation in Thailand and Indonesia.
• New Product Lines: The company plans to introduce biodegradable plastic packaging solutions in Q3 of 2024, catering to the FMCG and e-commerce sectors.

Challenges and Improvements

• Supply Chain Disruptions: The company faced a slight delay in raw material supply in early 2024 due to geopolitical tensions. To counteract this, Kataria Plastics is diversifying its supplier base and exploring domestic sources.
• Customer Complaint Trends: While the complaint resolution time improved to an average of 3.4 days in Q1 2024, the company is investing in AI-driven customer support systems to reduce this further.

Awards and Recognition

• Industry Awards: Kataria Plastics received the "Excellence in Manufacturing" award from the Plastics Manufacturers Association of India in March 2024.
• Sustainability Certification: In 2024, the company achieved ISO 14001 certification for its environmental management practices.

Challenges Identified

While Kataria Plastics scores high across most SERVQUAL dimensions, some areas for improvement include:

• Expanding customer feedback mechanisms to include digital platforms for broader reach.
• Reducing the time taken to address complex complaints.
• Enhancing the accessibility of customer service representatives during peak periods.

Recommendations

1. Digital Transformation: Implementing advanced CRM systems and leveraging AI for predictive analysis could improve responsiveness and empathy.
2. Customer Training Sessions: Offering workshops or tutorials on product usage can enhance assurance and build stronger relationships.
3. Feedback Integration: Actively incorporating customer feedback into product development and service delivery could drive continuous improvement.

Discussion Questions

1. How can Kataria Plastics leverage its strengths in tangibles and reliability to gain a competitive edge?
2. What specific steps can the company take to improve its responsiveness and empathy dimensions?
3. How does the SERVQUAL scale help identify gaps in Kataria Plastics’ service quality, and what metrics should be used to monitor progress?

Teaching Notes

• Objective: This case study aims to help students understand the application of the SERVQUAL scale in evaluating and improving service quality in a manufacturing context.
• Key Takeaways:
• The importance of aligning operational strategies with customer expectations.
• Practical approaches to address service quality gaps.
• Activity: Students can conduct a simulated SERVQUAL analysis for another manufacturing company to draw comparative insights.

References

1. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
2. Kataria Plastics Private Limited. (2024). Company Website and Annual Report.
3. Registrar of Companies, Gwalior. (2024). Corporate Data on Kataria Plastics Private Limited.
4. Industry Reports on Plastics Manufacturing in India, 2024.
5. Customer Feedback and Testimonials from Kataria Plastics’ Client Data