It is this
incessant approach towards ensuring customer satisfaction that has made his
organization Geonet IT Mall a well-recognized name in the assembled PC segment.
Business was one of the last things Bimal Kumar had thought of entering into
while he was pursuing his BTech in computer science from University of Pune. And
considering his family background, where rarely anyone tried his hands at
entrepreneurship, this mindset of Bimal was not too surprising either.
But that was story four years ago. Unexpected it may be, but the fact is that
today Bimal runs a successful business of PC assembling and his venture Geonet
IT Mall, in a short span,has made its mark as one of the leading assembled PC
shops in Navi Mumbai.
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Bimal Kumar |
Our focus on service has been much more than it had been on the actual sales |
STRONG CUSTOMER BASE
Started in Feb 1999, Geonet IT Mall today has three branches and a very
strong customer base in the home segment. Right from the beginning Bimal focused
on this segment and today he is in a position to offer PCs to meet different
budgets of customers.
To Bimal, customer satisfaction has always remained the key to his success.
"Right from day one, we have tried to offer maximum value for customers’
money while he purchases a PC from us," says Bimal. And this value was
delivered not just in term of quality product but also excellent service,
after-sales support and most importantly Bimal’s own personal interaction with
each of his customer.
Needless to say, all this resulted in a success that by any standard is
enviable. Geonet started with a capital of Rs 5 lakh and broke even in less than
a month itself. From its initial days, when the company used to sell about 10-12
systems a month, today its sales cross over 100 PCs a month. "In the very
first year of operation, we recorded a turnover of Rs 2 crore. And we doubled
this up very next year, ie in 2000-2001," informs a proud Bimal.
As was the case with the entire IT industry in general, FY 2001-2002 was not
as good. "But we still recorded a far better growth than others and clocked
Rs 7 crore in revenues," adds Bimal. Also by this time, he had started a
training center for Jetking, which started to bring in additional revenues.
"This year, when we close the books in March, we would have had at least 20
percent growth," says Bimal.
However, he insists that despite a sharp fall in the topline growth, Geonet’s
bottomline would have got strengthened. This, he adds is the result of
maintaining fair practices and having strong cost controls. "To some extent
my management education has also helped me in running the organization in an
extremely professional and efficient manner," quips Bimal. Bimal also
attributes his success to his five-year stint with different IT companies before
he jumped into business.
BETTER VALUE PROPOSITION
After finishing his BTech in 1994, Bimal joined HCL as a marketing executive
and worked there till 1998. Then he joined Delhi-based Multiple Zones but soon
realized that it was not one of the best career moves that he had made. He quit
the company in less than a year. Then he went into another Delhi-based company
called Integral Computers and was responsible for managing its operations in
Mumbai.
"It was during this period that the idea of starting my own systems
assembling business struck me," says Bimal. And with his extensive contacts
and experience in the local market, he did not face much difficulty. In less
than three months time, Geonet had got two branches for itself.
But all this instant success did not get into Bimal’s head and he
constantly increased his efforts towards offering customers a better value
proposition either in term of product itself or related service. "In fact,
right from day one, our focus on service has been much more than on actual
sales," tells Bimal. He informs that for sales, his staff strength has
remained constant at seven, while his service team has grown nearly ten times.
According to Bimal, he has never shied from charging more from customers as
compared to the competition. "But what we have ensured is that we have
justified the price differential by offering the kind of service and support no
one else provides," adds he. And it is this confidence that has led Geonet
to constantly increase its customer base and create a brand name for itself in
the home segment.
MAINTAINING PERSONAL INTERACTION
Bimal says, "Being a player in the home segment, Geonet gets a strong
word-of-mouth publicity and also because of the fact that despite company’s
growth, I still interact with customers on an individual level." And it is
this personal interaction, which he thinks, makes a world of difference to
customers.
This became apparent, when while talking to DQCI for the story, one of the
customers walked up to him with a problem concerning his web camera. Bimal
instantly directed his service staff to look into the matter and offer immediate
replacement if necessary.
"Customer expectations are very high today and if one needs to survive
in these competitive times, one has to meet all these expectations,"
remarks Bimal. According to him, after-sales service plays a very crucial role
towards meeting customer expectations and hence generating publicity for the
organization. And having realized this, Bimal is also very confident that very
soon his service division will emerge as an independent profit center.
"By now we have well understood that if you can offer excellent service
to customers’ content, they wouldn’t mind paying you a bit extra," says
Bimal adding, "And it is this realization that has made us seriously work
towards making our service division an independent entity by itsel."
Bimal is hopeful that in about two month’s time, Geonet’s service
division will break even and after that will start showing profits. "This
of course will be made possible by creating a strong buffer of manpower on
service front and exerting tight control on costs," adds he.
DIVERSIFICATION’S ON THE AGENDA
Bimal is also envisaging setting up a service network across major cities in
the country. "We are already working in this regard and have readied our
infrastructure in Bangalore and Delhi," informs he.
Bimal is also looking at a model, where in Geonet would offer service packs
to users irrespective of where they buy their PC from. He believes that this
model would also help those who have transferable jobs and have to keep moving
to different cities as the service packs could be utilized in any city within
its network.
In addition to this, other things on Bimal’s agenda are to slowly increase
its penetration in the corporate segment and look at some diversified IT
activities as well. "Now that we are an established player, we feel
confident of entering the enterprise space," adds he.
Bimal also informs that he is seriously considering getting into the
IT-enabled services arena. "If things work out, you would soon see us
setting up a small call center catering to the needs of small banks here in Navi
Mumbai," adds he.
But would he completely diversify into some other activities with time?
"No. That is never going to happen. Systems assembling would still continue
to be my main business though, the business model may get more refined with
changing times," says Bimal. But before ending he adds with a chuckle,
"I have always wanted to have a discotheque of my own. That has been a
passion for me and I am going to realize that dream someday!"
GOLDIE