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INTRODUCTION TO MARKETING

Marketing occupies an important place in the organization of a business unit. Marketing is the purpose of business activities in that direct the flow of goods and service from producer to consumer. Philip Kotler defines as “marketing is analysis, organizing, planning and controlling of the firms customer impinging resources, policies, activities with a view to satisfying the needs and wants of chosen customer groups at a profit.” marketing is the satisfaction of customer"s needs. he prime ob!ectives of modern he marketing functions are not only limited to

the functions by buying and selling but also include all functions which satisfy the customers such as financing, storing, rick bearing, after sale services etc marketing is related to the needs of buyer. #ccording to the $undiff and %till “marketing is the business by the which products are matched with markets and through which transfers of ownership are effected.” Marketing activities are concerned with the demand stimulating and demand fulfilling efforts of the enterprise. Marketing is the uni&ue of the business. Marketing has a special significance in both developed and under developed economics. 'n the underdeveloped countries rapid development of the economy is possible only by adopting modern methods of marketing. 'n the developed countries due to high upto date technology the volume of production is more than the demand. 'n order to balance both demand and supply marketing is very important. Marketing helps to improve the standard of living of the people. Marketing provide wide employment opportunities. Marketing was considered as yesterday"s lu(ury but today it"s a necessity. Marketing converts latent demand into effective demand. he marketing mi( consists of )P"s of which place is very important. 'n the modern concept it is called as distribution. *istribution of anything is done through channels. *istribution is the based by the producer after production.

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he production is meant for satisfying the needs of consumer, and it must reach to the ultimate consumer for which it is made. he channel or the through which the foods glow from the producer to the consumer is called channels of distribution.

Definitions of Marketing
• “Marketing is the performance of business activities that direct the flow of goods and services from the producer to the consumer.” • • • • “Marketing is the economic process by which goods and services are e(changed between the maker and the user, and their values determined in terms of money prices.” “Marketing is designed to bring about desired e(changes with target audiences for the purpose of mutual gain.” “Marketing is a total system of interacting business activities designed to plan, promote and distribute need+satisfying products and services to e(isting and potential consumers. “Marketing originates with the recognition of a need on the part of a consumer and terminates with the satisfaction of that need by the delivery of a usable product able price. he consumer is found both at the beginning and at the end of the marketing process.”

what is marketing activity
't is advisable to understand what is included in marketing activities. Marketing is invariable connected with the insights or research into customer"s behavior namely what the customer"s want, need, prefer and value, who are the prospects and where they live, their incomes and mode of spending, how they make purchase decisions and so on. Marketing deals with the product policy i.e. what type of product or products should be manufactured. he determination of price and the terms of payment are also of the products andwhether to insist on cash payments or allow the customer deferred payment facility must also be considered while formulating the product policy.

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CU!TOMER !ATI!"ACTION
he e(tent to which a product"s perceived performance matches a bias e(pectation. 'f the product"s performance falls short of e(pectations, the buyer is dissatisfied. 'f performance matches e(pectations, the customer is satisfied. 'f who buy but fail to attract act enough buyers. 'n contrast, if they raise e(pectations too high, buyers are likely to be disappointed.

“!atisfaction is a #erson$s fee%ings of #%eas&re or 'isa##ointment res&%ting from com#aring a #ro'&ct$s #erceive' #erformance in re%ation to his or her e(#ectations) ++++++++*hi%i# Kot%er

oday"s most successful companies are raising e(pectations and delivering performance to match. hese companies embrace total customer satisfaction. ,ighly satisfied customers produce several benefits for the company. %atisfied customers are fewer prices sensitive, remain customers for a longer period, and talk favorably to others about the company and it"s products. # company can always increase customer satisfaction by lowering it"s price or increasing its services, but this may resulting lower profits. marketing is to generate customer value profitably. hus, the purpose of

O+,ECTI-E O" T.E !TUD/
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• . • • • •

o understand customers opinion on -% Motors products

o know the e(pectations of customers about products.

o understand -% Motors awareness in the selected potential market. o identify the customer satisfaction after sales service.

o study the customer e(pectations of service.

• •

*iscuss the firms can recover consumer after a service failure.

o identify the components of the customer value package.

NEED "OR T.E !TUD/
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.ow+a+days customers are aware of what they get for the value paid. #nd they are wasting no time to get it. .ow it is the !et set age with people stopping at one of the showroom and finalizing the deal, model and the make before walking &uietly away. $ustomers are looking for personalized services. 't is not what showroom looks that make importance it is how many moments of truth it can provide to a customer. information facts and support while making this decision it is !ust a relationship feel. customer not only chooses the best product for his money. hese oday moments indicate the time each customer can get at every showroom, which provide

IM*ORTANCE O" CU!TOMER !ATI!"ACTION
/. 0arge number of competing brands or products are available in the market. 1. 2etter brands 3products4 or better substitutes are coming in the market to replace old brand or products. 5. $onsumer awareness has gone up tremendously due to mass advertising on electronic media. ). 2etter technology available to give better &uality. 6. ,igher productivity will mean lower price or even sustenance of price. 7. he marketing companies are interested to achieve long term ob!ectives through customer satisfaction.

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MET.ODO0OG/
'n this chapter the se&uence of research process under taken in Kusalava -% Motors 0imited, -i!ayawada is e(plained.

/. P8'M#89 *# #:

he primary data was collected with the help of standard and accepted techni&ues which are in used for this kind of studies to administer the structure &uestionnaire stratified random sampling techni&ues where used. #long with the &uestionnaire, discussions with the customers were conducted to understand their views on the problem of research, Kusalava -% Motors 0imited. he data was collected on the basis of random sampling. his techni&ue minimized the sampling strength.

1. %;$<.*#89 *# #:

he secondary data has been collected going through the company manuals, records, reports etc Profile of the company and its ob!ectives were gathered from of the $ompany and other working papers provided by the company.

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0IMITATION! O" !TUD/

/. ;valuation of marketing strategies is sub!ective in nature and is relevant for the each type of product portfolio, hence a conclusive !udgment in regard to this is not possible. 1. <pinion survey is sub!ect to personal bias of the users. 5. %ome of the answers given by the customers may bias. ). 6. he ma!or part of the pro!ect is based on the availability of secondary data. he scope of the study is limited only to the customers of ,-i!ayawada. -% motor vehicles in

7. #s customers satisfaction is intangible and the measurement was difficult .

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,'% <89 <= >< >,;;0;8%

#rguably, the first motorcycle was designed and built by the ?erman inventors ?ottlieb *aimler and >ilhelm Maybach in 2ad $annstatt 3since /@A6 a city district of %tuttgart4 in /BB6. he first petroleum+powered vehicle was essentially a motorised bicycle, although the inventors called their invention the 8eitwagen 3Criding carC4. 't was designed as an e(pedient testbed for their new engine, rather than a true prototype vehicle.Dcitation neededE ,owever, if a two+wheeled vehicle with steam propulsion is considered a motorcycle, then the first one may have been #merican. <ne such machine was demonstrated at fairs and circuses in the eastern F.%. in /B7G, built by %ylvester ,oward 8oper of 8o(bury, Massachusetts 'n /B@), ,ildebrand H >olfmIller became the first motorcycle available for purchase. 'n the early period of motorcycle history, many producers of bicycles adapted their designs to accommodate the new internal combustion engine. #s the engines became more powerful and designs outgrew the bicycle origins, the number of motorcycle producers increased. Fntil the =irst >orld >ar, the largest motorcycle manufacturer in the world was 'ndian,producing over 1A,AAA bikes per year. 2y /@1A, this honour went to ,arley+*avidson, with their motorcycles being sold by dealers in 7G countries.D 2y the late /@1As or early /@5As, *K> took over as the largest manufacturer

#fter the %econd >orld >ar, the 2%# ?roup became the largest producer of motorcycles in the world, producing up to G6,AAA bikes per year in the /@6As.Dcitation neededE he ?erman company .%F held the position of largest manufacturer from /@66 until the /@GAscitation needed

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.%F %portma( streamlined motorcycle, 16A cc class winner of the /@66 ?rand Pri( season'n the /@6As, streamlining began to play an increasing part in the development of racing motorcycles and the Cdustbin fairingC held out the possibility of radical changes to motorcycle design. .%F and Moto+?uzzi were in the vanguard of this development both producing very radical designs well ahead of their time.%F produced the most advanced design, but after the deaths of four .%F riders in the /@6)J/@67 seasons, they abandoned further development and &uit ?rand Pri( motorcycle racing.D Moto+?uzzi produced competitive race machines, and by /@6G nearly all the ?rand Pri( races were being won by streamlined machines.citation neededE he following year, /@6B, full enclosure fairings were banned from racing by the ='M in the light of the safety concerns.

=rom the /@7As through the /@@As, small two+stroke motorcycles were popular worldwide, partly as a result of ;ast ?erman >alter KaadenKs engine work in the /@6As.

oday, the motorcycle industry is mainly dominated by Lapanese companies such as ,onda, Kawasaki, %uzuki, and 9amaha, although ,arley+*avidson and 2M> continue to be popular and supply considerable markets. <ther ma!or manufacturers include Piaggio group of 'taly, K M, riumph and *ucati.

'n addition to the large capacity motorcycles, there is a large market in smaller capacity 3less than 5AA cc4 motorcycles, mostly concentrated in #sian and #frican countries. #n e(ample is the /@6B ,onda %uper $ub, which went on to become the biggest selling vehicle of all time, with its 7A millionth unit produced in #pril 1AAB. oday, this area is dominated by mostly 'ndian companies with ,ero ,onda emerging as the worldKs largest manufacturer of two wheelers. =or e(ample, its %plendor model which has sold more than B.6 million to date

Technica% as#ects
Motorcycle construction is the engineering, manufacturing, and assembly of components and systems for a motorcycle which results in performance, cost and aesthetics desired by the designer. >ith some e(ceptions, construction of modern mass+produced motorcycles has

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standardised on a steel or aluminium frame, telescopic forks holding the front wheel, and disc brakes. %ome other body parts, designed for either aesthetic or performance reasons may be added. # petrol powered engine typically consisting of between one and four cylinders 3and less commonly, up to eight cylinders4 coupled to a manual five+ or si(+speed se&uential transmission drives the swingarm+mounted rear wheel by a chain, driveshaft or belt.

"&e% economy
Motorcycle fuel economy varies greatly with engine displacement and riding styleranging from a low of 1@ mpg+F% 3B./ 0M/AA kmN 56 mpg+imp4 reported by a ,onda - 8/AAA= rider, to /AG mpg+F% 31.1A 0M/AA kmN /1@ mpg+imp4 reported for the -erucci .itro 6A cc %cooter. # specially designed Matzu Matsuzawa ,onda O0/16 achieved )GA mpg+F% 3A.6A 0M/AA kmN 67A mpg+imp4 Con real highways + in real conditions.C *ue to lower engine displacements 3/AA ccJ 1AA cc4, motorcycles in developing countries offer good fuel economy.Dcitation neededE 'n the 'ndian market, the second most selling company, 2a!a!, offers two models with superior fuel economy: O$* /16 and Platina. 2oth are /16 cc motorbikes with a company+claimed fuel economy of 167 mpg+F% 3A.@/@ 0M/AA kmN 5AG mpg+imp4 and 17/ mpg+F% 3A.@A/ 0M/AA kmN 5/5 mpg+imp4, respectively.Dcitation neededE

E%ectric motorcyc%es
-ery high fuel economy e&uivalents can be derived by electric motorcycles. ;lectric motorcycles are nearly silent, zero+emission electric motor+driven vehicles. <perating range and top speed suffer because of limitations of battery technology =uel cells and petroleum+electric hybrids are also under development to e(tend the range and improve performance of the electric motors.

Dynamics

8acing motorcycles leaning e: 2icycle and motorcycle dynamics

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*ifferent types of motorcycles have different dynamics and these play a role in how a motorcycle performs in given conditions. =or e(ample, a longer wheelbase provides more stability in a straight line. Motorcycle tyres have a large influence over handling.

Motorcycles must be leaned in order to make turns. his lean is induced by the method known as countersteering, in which the rider steers the handlebars in the direction opposite of the desired turn. 2ecause it is counter+intuitive this practice is often very confusing to novicesP and even to many e(perienced motorcyclists. %hort wheelbase motorcycles, such as sport bikes, can generate enough tor&ue at the rear wheel, and enough stopping force at the front wheel, to lift the opposite wheel off the pavement. hese actions, if performed on purpose, are known as wheelies and stoppies respectively. 'f carried past the point of recovery the resulting upset is known as an CendoC

Accessories
-arious features and accessories may be attached to a motorcycle either as <;M 3factory+fitted4 or after+market. %uch accessories are selected by the owner to enhance the motorcycleKs appearance, safety, performance, or comfort, and may include anything from mobile electronics to sidecars and trailers.

T-! MOTOR! 0IMITED

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-% motor company is the third largest two wheeler manufacturer in 'ndia. -% motor company is one of the premier automobile companies in 'ndia. he word -% stands for - %undaram 'yengar and sons 0imited which is the holding company of -% group of companies. he firm is engaged in the manufacturing of almost all kinds of automotive components, two wheeler and few other 'ndustry products. -% Motor $ompany has its origin in %undaram clayton limited, moped division, started in /@BA. he factory was started in hosur amilnadu in %outhern 'ndia. he first product launched was a 6A cc moped >hich appealed to the masses because of its capability to carry two peopleQ 'n the same location, the same promoters started another company in /@B), in collaboration with %uzuki Motor $orporation of Lapan, for the manufacturer /AAcc motor cycles under the brand name of 'nd J%uzuki motor cycles. %ubse&uently in the moped division was bought by 'nd+%uzuki motorcycles in /@BG and the company changed its name to -% %FRFK' limited. ;ven though the company started producing all kinds of two wheelers like mopeds, scooters and motor cycles, the collaboration with %uzuki continued for the motor cycles only. he collaboration with %uzuki Motor $orporation ended in 1AA/ and since then the name of the company changed to -% motor company. he company now develops all types of two wheelers through its own in house 8Hd =acility and manufacturers in three locations in 'ndia. ,osur in manufacturing plant in 'ndonesia to cater to the %outh ;ast #sia market. he $hairman Managing *irector of the $ompany is Mr.-enu %rinivasan who is the grandson of - %undaram 'yengar. he company has ) plants located at hosur and Mysore in %outh 'ndia, in ,imachal Pradesh, .orth 'ndia and one at 'ndonesia. he company has a production capacity of 1.6 million units a year. -% has always stood for innovative, easy to handle, environment friendly products, backed by reliable customers" service. .o wonder, then, that our /6 million customers on the road have a reason to smile. amilnadu Mysore in Karnataka and 2addi in ,imachal Pradesh. 't was recently started a new

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-% motor"s strength lies in design and development of new product+the latest launch of G products on the same day seen as a first in automotive history. >e at -% deliver total customer satisfaction by anticipating customer need and presenting &uality vehicles at the right time and at the right price. he customer and his ever changing need is our continuous source of inspiration.

MI!!ION AND -I!ION !TATEMENT O" T-! MOTOR!
T-! Motor Com#any1Mission
>e are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the -% brand, for customers predominantly in #sian markets and to provide fulfillment and prosperity for employees, dealers and suppliers.

-ision !tatement

T-! Motor 2Driven 3y the c&stomer
-% Motor will be responsive to customer re&uirements consonant with its core competence and profitability. -% Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time.

T-! Motor 2 The In'&stry 0ea'er
-% Motor will be one among the top to two wheeler manufacturers in 'ndia and one among the top five two+wheeler manufacturers in #sia.

T-! motor g%o3a% overview

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-% motor will have profitable operation overseas especially in #sian markets, capitalizing on the e(pertise developed in the are of manufacturing, technology and marketing. he thrust will be to achieve a significant share for international business in the turn over.

T-! MOTOR! 2 AT T.E CUTTING EDGE
-% Motor will hone and sustain its cutting edge of technology by constant bench marketing against international leaders.

T-! MOTOR 2 COMMITTED TO TOTA0 4UA0IT/

-% Motor is committed to achieving a self J reviewing organization in perpetuity by adopting SM as a way of life. -% Motor believes in the importance of the process, People and pro!ects will be evaluated both by their end results and the process adopted.

T-! Motors 2 the h&man factor

-% Motor believes that people make an organization and that its well+ being is dependent on the commitment and growth of its people. here will be a sustained effort through systematic training and planning career growth to develop employee"s talents and enhances !ob satisfaction. -% Motors will create an enabling ambience where the ma(imum self J actualization of every employee is achieved. -% Motor will support and encourage the process of self J renewal in all its employees and nurture their sense of self worth.

T-! MOTOR! 2 RE!*ON!I+0E COR*ORATE CITI5EN

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-% Motor firmly believes in the integration of safety, ,ealth and ;nvironmental aspects with all business activities and ensures protection of employees and environment including development of surrounding communities. suppliers. -% Motor strives for long Jterm relationships of mutual trust and interdependence with its customers, employees, dealers and

*RODUCT !*ECI"ICATION!
*RODUCT !COOT/ *E*6 !COOT/ *E*6 *A!!ION !COOT/ *E*6CO00ECTION ME !COOT/ *E*6 !TREAK !COOT/ *E*6!TREAK *A!!ION !COOT/ TEEN5 A*AC.E "RONT DI!C A*AC.E REAR DI!K A*AC.E "I "0AME "0AME DI!C !TAR !*ORT !TAR CIT/ !TAR CIT/ CC 78 78 78 78 78 =8 >=8 >=8 >=8 ><9 ><9 >>8 >>8 >88 +.* 9:9 9:9 9:9 9:9 9:9 A >9:< >9:< >9:< >8:9 >8:9 ?:7 7:? ?:7 MI0AGE 98 98 98 99 99 A< 99 99 99 =9 =9 ?A ?9 ?A *RICE ;88;< ;8=9> ;>?9> ;<<9= ;<@>; A<;>8 =??;= =77=< ?;??@ 9<;?> 99;>= ;8>?= ;=>78 ;8A?;

"%ash 3ack
-% Motor $ompany is part of %undaram $layton group in -% group of companies. Motor $ompany is the main flag ship company of %undaram $layton group. -%

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Growth of T-! Motors 0imite'  'n /@G@ %undaram $layton 0imited 3%$04 started Moped *ivision at ,osur to manufacture -% 6A mopeds, indigenously designed and developed.  'n /@B1 %$0 established Loint -enture with %uzuki Motor $orporation.  'n /@@) the company entered the market segment of scooters with introduction of %cooty 1%, which was totally an indigenous design.  'n 1AAA the first ) stroke motorcycle was launched called =iero.

o become independent and increase profitability the 8H* activities were focused and after parting away with %uzuki in 1AA/ -% Motor company was formed.

he first product launced by the -% Motors is “-ictor”and which was very successful. -% Motors launched various products like -ictor, =iero, and new products like $entra and %tar.

9ear /@G@+/@B)

$ompany .ame %undaram $layton 0imited 3%$04

Products  Mopeds  1 %troke Motor $ycles

/@B)+1AA/

-% %uzuki

 1 %troke %cooty  ) %troke Motor $ycles 3=iero4 %o many models have been designed under this which are given below.

1AA/ onwards

T-! Motor Com#any

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-% $ompany Products:

 Mopeds:    -% $hamp -% O0 %uper -% heavy duty

#ll these products are so popular in the rural area especially in south and they hold BAT of the market in this segment.

%cooterettes:
   -% %cooty -% %cooty P;P -% %cooty P;PU

 Motor $ycles: 'n motor cycles -% Motors have variety of models.

    

-ictor =amily and it"s variants %at8 =amily $entra Ma( 8 #nd the latest popular bike “#pache” • • • • -% Motors have /BT overall share in the market he combined capacity as on March A7 ' s/.@ million vehicles he annual turnover for A6+A7 is 55A7A million he company has an e(ponential growth in e(port with presence in #frican, %outh #merican and %outh ;ast #sian countries.

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ABARD!

 -% Motor company bagged the prestigious “*eming #ward” in 1AA1  PM ;(cellence wd in 1AA) for one of its plant.  8ecently they had another feather in the cap of -% Motor $ompany for getting the top notch for overall &uality in two+wheeler manufacturing segment. #nd both %tar and %cooty P;P were ahead of their competition in &uality rating.

"oc&s on Motorcyc%e

-% group was a pioneer in mopeds but slowly they have shifted focus to the motorcycle segment since the entire market seems to be moving in that direction as consumer preferences and choices have changed with the changing times. he company has been able to outdo it self and spring a surprise, as many analysts felt that the company would be pushed to the periphery of the two wheeler market. >ith the e(it of %uzuki, many felt -% would have to limit itself to the moped market in the country. he company did not have a good track record of in+house product development as most of its" earlier ventures like the %haolin, %hogun and %upras failed to take off.

his further heightens the importance of the success of the -% -ictor, the company aims to become the number 1 two wheeler manufacturers in 'ndia and also want to crack the top five in #sia. he company has products across all categories from premium motorcycles to entry level mopeds and has recently launched #pache in the premium segment.

T-! Two Bhee%er Mo'e%s

“'nspiration in Motion”

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♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

#pache $entra =iero =1 =iero =O Ma( /AAM8 %amurai %cooty %cooty Pep %pectra %tar %tar $ity %tar *0O %uzuki =iero -ictor -ictor ;dge *isc -ictor ;dge *rum -ictor ?0O -ictor ?O O0 %uper O0 %uper ,*

T-! A*AC.E

he -% #pache is a /6Acc, ) stroke engine, motorcycle that assures a ma(imum power of @.@6KwM3/5 bhp4VB6AA rpm and a ma(imum tor&ue of /1.5.m V 7AAA rpm. he glossy body panels give it a very chic appearance. #nd its brawny engine makes it look very masculine and sporty, which is what makes this bike a hot favorite among the youth. %ince the bike is e&uipped with shorter wheelbase, driving in the traffic becomes easier for the rider. 'ts suspension power provides a great riding e(perience even on the rocky roads. he ,onda #pache bike has won awards such as:

   

-iewers $hoice bike of the year "A7 from $.2 .* -" 'ngenious *esign of the 9ear "A7 from <ver *rive" 2est *esign of the 9ear "A7 from 22$ op ?ear" 2ike of the 9ear "A7 from <verdrive, #utocar -% #pache echnical %pecifications.

T-! !COOT/ *E*6
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-% %cooty PepU launched by -% Motor $ompany has been designed keeping in mind the needs of the upwardly mobile and modern woman. 'ts newly refined @A cc engine along with other host of enhancements make it more pepped up as well as sporty, !ust right for young girls. >ith its W;R stand" technology it is much lighter and proves to be of superb convenience for women riders. hough a marked change has been made in its power, %cooty PepU retains its trndy and se(y looks. # whole lot of rich features have also been incorporated in the new %cooty PepU, like greater storage facility, mobile charger, lights under the sear storage and fluorescent iginition key slot. -% %cooty PepU signifies freedom and is a more bubbly and cute scooterette.

-% %cooty Pep Plus is a modern ) stroke G6cc scooty that is ideal for the ladies. 'ts powerful engine generates ma(imum power of 5.7Bkw 36 bhp4V 76AArpm and ma(imum tor&ue of 6.B V )AAA rpm.

%ome of the best features of the %cooty pep Plus are !ewel bo( headlamp, integrated tail lamp, chrome planted e(haust, multi reglector indicators, and the striking pillion grab rail. 2esides these, there are many other features to this scooterette that prove very user+friendly+ auto choke, bag hooks, compartmentalized utility bos, auto fuel tap, glove bo( push and pull bag holder among others. he Pep Plus %cooty comes in dual te(ture colors and arresting graphics.

T-! !&#er C0

-% %uper O0 launched by -% Motor $ompany is a heavy+duty moped built keeping in mind the re&uirements of the farmers in the rural sector. Packed with %uper safety fuel tank lock, super speedometer and ignition contro., super styling and graphics and super multi reflector headlamps and indicators, it is the best bet when it comes to endurance and long hours" !ourney. -% %uper O0 has got a powerful GAcc engine with kick start along with high reliability with auto wet clutch system.

't ensures improved safety with its //Amm dia rear brakes and has got inbuilt easy wheel removal mechanism with S* wheel system. #nd last but not the least, -% super O0 ensure safe night riding.

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Bhat makes T-! stan' o&t from a%% other two whee%er com#anies in the co&ntry

-% stand out from all other two wheeler companies in the country is that it is without any foreign collaboration. he company was established by .- %undaram lyengar in the year /@// and was primarily into the production of mopeds. -% Motor company 0imited, the flagship company of the F%* 1.1 billion -% ?roup, is the third largest two+wheeler manufacturer in 'ndia and among the top ten in the world, with an annual turnover of over F%* 76A million. he company has many first to its credit like the introduction of the first indigenous moped and a /AAcc motorcycle in collaboration with Lapanese auto giant %uzuki.

>hen the collaboration ended in 1AA5, many thought that the company would die a natural death due to the e(it of the foreign collaborator. ,owever the company proved its detractors wrong by introducing the -% -ictor and rest as they say is history. he $ompany roped in master 3%aster !achin Ten'&%kar for the promotions and the sales went northwards after that. -% $ompany is aiming to capture a &uarter of the total two

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wheeler

market

in

the

country.

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C.A*TER1Ⅲ
COM*AN/ *RO"I0E

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COM*AN/ *RO"I0E KU!A0A-A MOTOR! D*E 0TD
Kusalava 'nternational ltd. , he front runner of 'ndian $ylinder 0iner Manufacturing 'ndustry, well tuned to hi+tech environment always reaching new heights in fulfilling world class customer re&uirements.

Kusalava is en!oying a ma!or share in domestic <;M re&uirements as well as #fter Market in 'ndia for the past 5 decades. 't has spread its wings to global market and now e(ports across the globe. 'n recognition to the &uality e(cellence, Kusalava received % /7@)@:1AA1 $ertification in <ctober 1AA) from F- renewed up to 1AAG. Kusalava ?roup activities cover almost every nook and corner in the automobile sector right from =<F8M >< wheeler dealerships to spare parts, 0easing and =inance activities. he Kuslava Motors was established by the $,.Kusalava in the year /@B/ company is involved in the activity of trading two wheelers and ) wheelers, it is the official dealer for -% Motors 2ikes 3;arlier known as -% %FRFK'4 and ,yundai $ars in the cities of -i!ayawada. 't also has branches in ?untur, <ngole, 2himavaram and ?udivada. KF%#0#-# -% is the monopoly dealer in the Krishna district it has 5 sub branches in the -i!ayawada 3currency nagar, 2enz circle, 2havanipuram4 and it also has many associate dealers throughout Krishna dist. KF%#0#-# ,9F.*#' is the *ealers for ,yundai Motors 'ndia 0td. 't has dealer ship in the 3Krishna *istrict, ?untur *istrict, >est ?odavari *istrict, Prakasam *istrict4

*ro'&cts Man&fact&re'
'?;8 P<>;8 + he ough Parts Most of the vehicle manufacturers in the 'ndian *omestic market has a tie+up with international manufacturers 0ike Mazda, ,ino, Mercedes 2enz, Mitsubishi. Kusalava 'nternational 0imited supplies their products to the below <;M"s in 'ndia who has international collaboration.

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KU!0A-A GROU* O" COM*ANIE!
• • • • • • Kuslava 'nternational 0td. 2harat #utomobiles $hukkapalli ransprot $ompany ?MK %.;,# 2io ech Kusalava =inance

K&s%ava Internationa% 0t'

Kusalava 'nternational 0td established in the year /@7) is in forefront in the area of sleevesMcylinder liners for internal combustion engine. he company has so far established a reputable clientele in 'ndia. 't also caters the needs of replacement market through well+organized distribution network. he unit has established a strong foot holds in the ;(ports front.

+.ARAT AUTOMO+I0E!

2harat automobiles are the trading wing of Kusalava group with a wide marketing network, dealing with spare part market.

C.UKKA*A00I TRAN!*ORT COM*AN/

$hukkapalli transport company is Kusalava own independent transport organization with its own fieet of over /1 trucks mainly for transporting our manufactured items to maintain !ust in time delivay.

GMK

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?MK products located at “Kesanapalli” near “ra!olu” in #ndhra Predesh, /GA kms from -i!ayawada. ?MK products are a natural gas based plants. he present capacity is / m.w. and increasing to 5 m.w.

!NE.A +io tech
he $ompany is research firm, which focuses on development of products using biotechnology for agriculture, marine industry and humans as well. he products are used as a substitute to chemicals H fertilizers in agriculture and a&ua industries and are used as substitutes to drugs for humans %neha bio fertilizers manufacture agri inputs, biofertilisers, and biopesticides. Marketing 2io+fertilizers under the brand name of “bio power”.

KU!A0A-A "INANCE
he company has been established way back in /@GA and is engaged in the business of financing automobiles. he company has been able to carve a niche of itself in the automotive sector by offering clients customized financing options as per their needs. Kusalava =inance provides the finance facilities.

KU!A0A-A IN"ORMATIC!
%tarted of as an in+house software arm for developing an integrated ;8P solution, the division has been spun off into a separate company in 1AA7. %ince then the company has been working on many pro!ects with overseas clients and has seen unprecedented growth

KU!A0A-A *OBER
he company is involved in the business of power generation and has a total generating capacity of 5 M>. KU!A0A-A REA0T/:

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he $ompany is involved in the business of developing housing, apartments and shopping malls.

0I!T O" DOME!TIC O:E:M: C0IENT0E

M#.F=#$ F8;8 $<00#2<8# '<. %upply %hare /. #shok 0eyland 0td ,ino+Lapan H 2ritish 0eyland 6AT 1. ;0$< Mercedes 2enz GAT 5. ;icher Motors Mitsubishi /AAT ). 2a!a! empo 0td *aimler 2enz /AAT 6. %wara! Mazda Mazda /AAT 7. Mahindra H Mahindra .issan /AAT G. -.%. . illers ractors 0td Mitsubishi /AAT #nd for the 'nternational Market, Kusalava 'nternational 0imited had a start ) years back and supplying the products after &uality validation for the below customers. 'nterestingly, Kusalava has worked in tandem with the above 'nternational collaborated 'ndian <;Ms to achieve their stringent &uality re&uirement both in =oundry and Machining. he above <;Ms contribute 5AT of Kusalava 'nternational 0imited turnover. echnical officers from Kusalava have played a vital role in establishing and understanding the 'nternational specification for the domestic <;Ms and had good report for working hand in hand to meet the drawing print specifications. #nd for the 'nternational Market Kusalava 'nternational 0imited is supplying the products after &uality validation for the below customers.

K&sa%ava is s&##%ying %iners to F"or' Certifie' Re3&i%'ersF at U!A:

27

hey are #4 #;8 M#.F=#$ F8'.? '.$., $#88<00 <. O 24 =8#.K0'. ;.?'.; H P#8 % '.$., P.< 2<OX @@/1@5 $# $4 %;M'.<0; %#0;% 2'8M'.?,#M #0 *4 <M#*F8 ;.?'.; $<MP#.9 $#P' #0 #-;.F; $#

DOME!TIC A"TER MARKET :
Kusalava 'nternational 0imited has a good market share in domestic market with the C iger PowerC brand and is the biggest liner manufacturer in 'ndia. Kusalava has well established off site warehouses and branch set+ups across 'ndia for market and customer access.

Com#any *ro'&cts
Kusalava manufacturers 0inersM%leeves in both $ast 'ron and %.?.'ron, $entri $ast -alve seat 'nserts and #lfin Piston 'nserts. #s a new development Kusalava has started manufacturing the engineering items out of its own technology like 5 mts., pipes for ash disposal for the thermal power plants, sugar crushers material, and motor frames for the heavy electrical motors.

!TRENGT.!
1) Automated Foundry 2) Spectro Check ( erman !ake) "or #n$tant Chem#ca% Ana%y$#$ 3) Centr# Ca$t &#pe$ upt to 3'0 mt$'( )en*th 4) +ardne$$ ,e$t#n* (-ock.e%% and /r#ne%%) 5) ,en$#%e and /end#n*( y#e%d $tren*th( 0 o" a%on*at#on (upto 40!,) 6) !#cro$cope$1 raph#te morpho%o*y (etched 2 unetched cond#t#on$) upto 5003 7) C4C !ach#ne$ "or mach#n#n* comp%#cated pro"#%e$ 8) &%ateau hon#n* (4a*e% make) mach#ne .#th auto $#5e contro% 9) 6!6 r#nd#n* 7 +on#n* !ach#ne$( erman !ake) "or ma#nta#n#n* $tr#n*ent to%erance$ 10) 8ua%#ty contro% e9u#pped .#th %ate$t &neumat#c7:%ectron#c au*e$ and

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&ro"#%e pro;ector$ 11) eometr#ca% Accurac#e$ 1,ay%or +o<$on=-ou*hne$$ te$t#n* e9u#pment( >pt#ca% pro"#%e pro;ector

Techno%ogy U# gra'ation
Kusalava has developed the basic technical re&uirement for the manufacturing of their products, and in line to develop the technical strength hires e(perts from ?ermany for upgrading the foundry technology in line to the international practices. ill today Kusalava has taken 5 rounds of e(perts views to validate their process and to fine tune their e(isting process for better productivity. Most significantly, Kusalava deputes their technical and managerial personnel for the training in different institutes for betterment of their knowledge and practices'

*RODUCT DE-E0O*MENT AND OUT!OURCING

.ew hrust is identified in the developingMsourcing group of products related to the #utomotiveM;ngineering 'ndustry. 'n this line Kusalava has achieved a significant development in the *omestic and 'nternational %ourcing 8e&uirement. ,ighlighted some of the products developed in C iger PowerC brand and bulk supplied for #fter Market customers are Piston #ssemblies, -alve ?uides and ?askets, P %prings etc.

Network an' 0ogistics
#t present Kusalava has central officeMwarehouse at -i!ayawada, and has warehouses and trained personnel across 'ndia for identification and follow up. <ur own fleet of trucks play a ma!or role in logistics for on time deliveries as per customers re&uirement. he central warehouses in 'ndia are : /4 -i!ayawada 14 $hennai 3Madras4 54 $uttack )4 .agpur 64 8a!kot 74 ?haziabad

4&a%ity mes&rements
'%<M % /7@)@ .

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he aim of '%< M %/7@)@ is the development of a &uality management system that provides for continual improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain . 't is based on '%<@AAA . Kusalava is one of the first few companies in 'ndia to be certified for '%<M % /7@)@ and the first among the cylinder liner manufacturers, in the year 1AAA. he Suality system is designed to ensure that the Suality Policy is understood and implemented at all levels and in all activities concerning customer service and product &uality. he &uality system lays emphasis in the use of statistical techni&ues.

;M% /)AA/:
8egard for environmental protection is one of KusalvaKs basic corporate principles. Product &uality, economic efficiency and environmental protection, employee health and safety are e&ual ob!ectives. ;nvironmental awareness anchored permanently in the principles at kusalava. 't comprises the involvement and training of our employees, the saving of resources and consistent optimization of our products and production processes by taking account of relevant environmental aspects.

echnologies like 8everse <smosis and 'on ;(change processes are employed for treatment and reuse of process waste water across all plants. #bout 1 lakh liters of treated effluent is being reused for gardening and other secondary purposes. More than /A,AAA trees help maintain ambient air &uality, holding soil and ground water and acting as carbon sinks in the premises.

#s part of its social responsibility, kusalava is actively involved with %tate and $entral Pollution $ontrol 2oards.

O3Gectives
Y *evelop, introduce and maintain environmental management systems across the company to meet the company standards as well as statutory re&uirements for environment. -erify compliance with these standards through regular auditing.

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Y #ssess environmental impact of all its activities and set annual improvement ob!ectives and targets and review these to ensure that these are being met at the individual unit and corporate levels. 8educe >aste, conserve ;nergy and e(plore opportunities for reuse and recycle.

O.!A! >@88>
Kusalava supplies high &uality goods and services to its customers. 'n doing so, the $ompany is committed to e(hibit the highest standards of corporate behavior towards its consumers, employees, the societies and the environment in which we operate.

owards this, the $ompany recognizes its responsibility to ensure safety and protection of health of its employees in all its operating sites, which include manufacturing, sales and distribution, research laboratories and offices during work and work related travel.

his Policy document defines the vision, principles, aim, re&uired actions and scope of the policy application as well as the responsibility for e(ecution.

$ertification for ;M% /)AA/ and <,%#% /BAA/:
Kusalava started implementing environmental management systems 3*'. ;. '%< /)AA/ andM or ;M#% '' 4 and <,%#% /BAA/ from the year 1AAG+AB and will go for certification as integrated management system by the mid of 1A/A.

M'0; % <.;%:
/@7): Kusalava 'nternational 0imited comes into e(istence as MM% 2harat 'ndustries.

/@G1: %tarted production of grey iron cylinder liners. %tarted supplies to ma!or road transport corporations 3% FKs4

/@B1: %upplies to replacement market with '?;8 P<>;8+ <F?, P#8 % 2rand name.

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/@B7: 'nstalled the first *ual rack 'nduction =urnace in 'ndia.

/@BG: 2ecame the ma!or source for *efence -ehicle =actory

/@@A: ;(ported its first consignment to .ew Realand.

/@@1: iger Power became the ma!or supplier of cylinder liners in #fter Market

/@@): ;merged as the 0argest cylinder liner manufacturer in 'ndia.

/@@6: Kuslava commissions its first overseas office in ,ouston, e(as, F%# '%<: @AA1 certified.

/@@7: %ales figures crossed of / million F%*. Kuslava becomes a limited company.

/@@B: S%+@AAA certified

/@@@: %tarted production of *uctile 'ron castings.

1AAA: '%<M % /7@)@ certified.

1AA1: urn <ver crosses /A millions F%*.

1AA5: 'ntroduced %i( %igma Process.

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#warded by #$M# for 2est %i( %igma Pro!ect in 1AA5

1AA): 'ntroduced 0ean Manufacturing Practices. 8eceived the best supplied award from ;'$,;8 M< <8%, for outstanding contribution to supply chain management. #warded by #$M# for 2est %i( %igma Pro!ect in 1AA) again.

1AA6: ;ntered into an agreement with the Market 0eader *arton %leeves, F%# for suppling ,igh ?rade *uctile iron liners to the *rag 8acing Market.

1AA7: otal PM Kick off on Luly 5rd 1AA7. Kusalava commissions new plant at pantnagar, Fttarakhand.

1AAG: urn over crosses 1A million F%*. Kusalava commissions new plant at -isakhaptnam, #ndhra Pradesh.

.IG. MOMENT 'ndustrialist $hukkapalli Kusalava being felicitated with ;(cellence #ward+1AA@ by the #ndhra $hamber of $ommerce and 'ndustry in -i!ayawada

-I,A/ABADA $hukkapalli Kusalava, chairman of the Kusalava group of companies, was felicitated at an impressive function organised by the #ndhra $hamber of $ommerce and 'ndustry here on Monday.

Mr. Kusalava was conferred the chamber"s “;(cellence #ward for 1AA@” in recognition of his outstanding services to the development of industry,
33

especially automobile industry, in the city and surrounding areas. he speakers praised him for his tireless efforts in the past four decades in building the local industry.

%peaking as chief guest, >heels 'ndia 0td. chairman and managing director %ri 8am %antanam said Mr. Kusalava"s contribution to the development of entrepreneurship was memorable. ,e spoke of the contemporary challenges to the economic growth in the face of recession and economic slowdown hitting world countries.

*welling at length on the crisis situation, Mr. %antanam said that the countries should have to rework their economic priorities rather than focussing on improving e(ports. ,e referred to the Lapanese government"s recent emphasis on improving &uality of life and giving a bigger say to local consumers.

#>#8*%: he *eming Prize J
-% Motor $ompany is the only two+wheeler company in the world to be awarded the worldKs most prestigious and coveted recognition in otal Suality Management

echnology #ward
1AA1 from Ministry of %cience, ?overnment of 'ndia for the successful commercialization of indigenous technology for -% -ictor

#sian .etwork for Suality #ward 1AA) J
-% %cooty Pep won the prestigious K<utstanding *esign ;(cellence #wardK from 2usiness >orld and .ational 'nstitute of *esign

Progressive Manufacturer /AA #ward J
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-% wins coveted 1AA@ Progressive Manufacturer /AA #ward for end+to+end automation of the entire business process of its lubricant brand, -% 8F) %ee full report

PM ;(cellence #ward 1AAB J
=irst category by Lapan 'nstitute of Plant Maintenance 3LiPm4 .

%%%
;merging $orporate ?iant in the Private %ector awarded by he ;conomic imes and the ,arvard 2usiness %chool #ssociation of 'ndia.

2est Managed $ompany award from 2usiness oday, one of 'ndiaKs leading business magazines. Most 'nvestor friendly company by 2usiness oday, one of 'ndiaKs leading business he K?ood #dvertisingK award by #uto 'ndia 2est 2rand #wards 1AA@.

%#P #$; #>#8* 1AAG J
he company won the %#P #$; 1AAG #ward for $ustomer ;(cellence in the Most 'nnovative .etweaver $ategory.

;#M ;$, 1AAG #ward J
-% Motor $ompany bags ;#M ;$, 1AAG #ward of ;(cellence for 'ntegrated use of $omputer #ided ;ngineering echnologies

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MANAGEMENT

Kusalava motors is ably managed by team as show down below

$,#'8M#. *'8$ <8 M#.#?'.? *'8$ <8 ;O;$F '-; *'8$ <8 ?;.#8#0 M#.#?;8 #*'M'.'% 8# '-; M#.#?;8

$,. KF%#0#-# $,. -;.K# ;%>#8#< $,.8.K.P8#%#* M.2.K8'%,.# P8#%#* 2.-;.K; 8;**9 ?. %' #8#M#.L#.;9F0F

*ROMOTIONA0 ACTI-ITIE! O" KU!A0A-A MOTOR!
he promotional activities carried and adopted by Kusalava Motors are • • • #dvertising in news papers *emos Mega demos

36

• • •

est rides ;(change offers ,ording and wall posters

!ER-ICE O""ERED
<ther then the promotional activities Kusalava Motors is under the &uality service connection. 'n addition to the above service, Kusalava Motors offer the following additional service. • • he organization offers three Wfree service" 't arranges finance through Kusalava Motors and through other finances like  ,*=$  #0=  %8'8#M# ='.#.$;  =F0 <. '.*'#

37

C.A*TER1Ⅳ
T.EORETICA0 "RAME BORK

38

T.EORETICA0 "RAME BORK ON CU!TOMER !ATI!"ACTION
Definition
$ustomer satisfaction “is the e(tent to which a product Mservice perceive performance matches a buyer e(pectation. ' f the product Mservice performance falls short of e(pectations, the buyer is dissatisfied"". otal &uality management “is programs designed to constantly improve has &uality of the products, service and marketing process"". # product is anything can be offered to the market for attention ac&uisition, use, or consumption that might satisfy need or want. %ervices are any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. $ustomer value is the different between the value the customer gains from owning and using a product and cost of obtaining the productMservice.

CU!TOMER! -A0UE AND !ATI!"ACTION
$ustomer are value+ ma(imizes, they from an e(pectation of value and act on it. 2uyer will buy from the firm that they perceive to offer the highest customer delivered value, defined as the difference between total customer value and total customer cost. $reating customer value and satisfaction are the heart of modern marketing thinking and practice. #lthough we will e(plore more detailed definitions <f marketing later this study, the simplest is the one : Marketing is the delivery of customer satisfaction at a profit. he two fold

39

goal of marketing is so attract new customer by promising superior value and to keep current customer by delivering satisfaction.

>hat does the term marketing meanQ Many people think of marketing only as selling and advertising only the tip of the marketing iceberg .today, marketing must be understood not in the old sense of making a sale “telling and selling” but in the new sense of satisfying c&stomer nee's.

UNDER!TANDING CU!TOMER !ATI!"ACTION
>ith all current attention given to customer satisfaction and service &uality measurement, we are undoubtedly aware that customer satisfaction is one of the single strongest predictors of customer retention. 2ut, while satisfied customers tend to be loyal customer, loyal customers are not always satisfied customers. #nd the impact of customer satisfaction on retention and loyalty is not the same for all industries or for all companies with in an industry. 'n order to ensure a positive service e(perience, all the resources of the service e provider must come together in e(actly the right way at e(actly right time for each and e very customer contact. it is during these episodes or “moments of truth” that customers compare their e(pectations of service with the actual service received. Maintaining a consistent level to customer satisfaction is not easy+ it means monitoring and controlling multiple, as well as concurrent, moments of truth for each and every customer. <n one level, we need to understand the key elements that most heavily influence retention for business. <n a second level, is imperative that your product and service e delivery process and policies are compatible with your &uality standards and delivery systems. 't is also essential that your employees are committed to and properly trained to implement &uality service. 9ou need information about your customer: • • • • • >ho are theyQ >hat"s important to themQ ,ow satisfied are they with your products and serviceQ >hat keeps them coming backQ <r, why are they leavingQ >hat are their needs and e(pectations of your products and servicesQ #re those needs and e(pectations being metQ

40

CU!TOMER !ATI!"ACTION IN ? !TE*!

't a well know fact that no business can e(ist without customers. 'n the business of website design, it"s important to work closely with your customers to make sure the site or system you create for them ids as close to their re&uirements as you can manage. 2ecause it"s critical that you from a close working relationship with your client, customer service is of vital importance. >hat flows are a selection of tips that will make your clients feel valued, wanted and loved.

ENCOURAGE "ACE1 TO 1"ACE DEA0ING!

/. respond to message promptly H keep your client informed 1. be friendly and approachable 5. ,ave a clearly J defined customer service policy. ). attention to detail 3also known as “ he little .iceties”4 6. anticipate your client .eeds H go of your way to help them out 7. ,onor your promises.

!TE*! TO CREATE A +ETTER CU!TOMER !ER-ICE

• • •

'ndentify your customer. ;stablish a good communication. %o you learn what your customerWs e(pectation s are about your service or product. $reate or modify your product or service according to that information.
41

•

Make sur e every one in your company or organization is aware and willing to improve the customer, service vision and mission.

CUSTOMER SATISFACTIO N

CU!TOMER !ATI!"ACTION 0INKAGE! 1

0INKING EM*0O/EE !ATI!"ACTIONH CU!TOMER !ATI!"ACTION I +U!INE!! RE!U0T

42

CU!TOMER! "IR!T

$ustomer service is both a management function and an integral part of your business marketing strategy. Marketing strategies outline how your marketing ob!ectives will be achieved. =or e(ample if the ob!ective is to increase market share, the marketing strategy states e(actly how the increase will occur. Marketing ob!ectives for profits, cash, flow, and market share ca&n be achieved by increasing the number of users, increasing the rate of purchase, retaining e(isting customers and having them repeat their purchases, or ac&uiring new customers.

9ou can provide e(cellent customer service and retain current customers by focusing on the )c"s

• •

$ustomer needs J meet their needs and maintain their satisfaction $ost to satisfy needs J gaining customer satisfaction doesn"t have to be e(pensive

43

•

$onvenience J being accountable to your customer, they want to help and give their opinions.

TOO0! "OR TRACKING AND MEA!URING CU!TOMER !ATI!"ACTION

Com#%aints an' s&ggestion system

# customer J c entered organization makes it easy for its customer to delivery suggestion and complaints. Many restaurants and hotels provide forms for guests to report like and dislike. %ome customer J centered companies like general electrical whirlpool establish hot lines with toll J free 1AA tele phone numbers companies are also adding web pages and e+ mail to facilitate two J way communication. hese information flows provide companies with many good ideas and enable them to act &uickly to resolve problems.

C&stomer satisfaction s&rveys

%tudies shows that although customers are dissatisfied with one out of every four purchases, less than 6 percent of dissatisfy customers will complain. Most customers" will buy less or switch suppliers. $omplaint levels are thus, not a good measure of customer satisfaction, $ompanies measure customer satisfaction directly by conducting periodic surveys. hey send &uestionnaires or make telephone calls to a random sample of recent customers. hey also solicit buyer"s views on their competitor"s performances. >hile collecting customer satisfaction data, it is also useful to ask additional &uestions to measure purchase intention, this will normally be high if the customer"s satisfaction is higher. 't is also useful to measure the like hood or willingness to recommend the company and brand to other. # high positive word of mouth score indicates that the company in producing high customer satisfaction.

0ost c&stomer ana%ysis

44

$ompanies should contact customer who have stopped buying of who have switched to another supplier to learn why this happened. >hen '2M loses a customer, it meant a though effort to learn where it failed. .ot only is it important to conduct e(it interviews, when customer first stops. 2uying, but it is also necessary to monitor the customer loss rate.

C&stomer satisfaction is what they e(#ect from the man&fact&rer an' how m&ch they satisfie' with the serviceJ

• • •

'f the performances of the product fall short of e(pectation, the customer is not satisfied. 'f the performance of the product matches with the e(pectations the customer is satisfied. 'f the performance of the product is more than the e(pectations the customer is highly satisfied and delighted.

't is very necessary to measure the customer satisfaction because every average business losses /AT to 5AT of its customers each year often without knowing. herefore the manufacture has to be in a position. o identity which customer they have lost, why they were lost and when they are lost and have to take the proper steps to overcome these problems. 'n a business, it is so far more e(pensive to win a new customer then to maintains the e(isting one that is cost of ac&uiring a new customer is 6 to G times greater than retaining the current one. $ustomer satisfaction is closely linked to &uality in recent years, many companies have adopted tota% K&a%ity management DT4ME #rogramsH 'esigne' to constantly improve.

45

C&stomer !atisfaction:

hus, consumers form e(pectations about the value of

marketing offers and make buying decisions based on these e(pectations. $ustomer satisfaction with a purchase depends on the products actual perfor mance relative to a buyerKs e(pectations. # customer might e(perience various degrees of satisfaction. 'f the productKs performance falls short of e(pectations, the customer is dissatisfied. 'f performance matches e(pectations, the customer is satisfied. 'f performance e(ceeds e(pectations, the customer is highly satisfied or delighted. 7 2ut how do buyers form their e(pectationsQ ;(pectations are based on the cus tomerKs past buying e(periences, the opinions of friends and associates, and marketer and competitor information and promises. Marketers must be careful to set the right level of e(pectations. 'f they set e(pectations too low, they may satisfy those who buy but fail to attract enough buyers. 'n contrast, if they raise e(pectations too high, buyers are likely to be disappointed. =or e(ample, ,oliday 'nn ran a campaign a few years ago called C.o %urprises,C which promised consistently trouble+free accommodations and service. ,owever, ,oliday 'nn guests still encountered a host of problems, and the e(pectations created by the campaign only made customers more dissatisfied. ,oliday 'nn had to withdraw the campaign. he #merican $ustomer %atisfaction 'nde(, which tracks customer satisfaction in more than two dozen F.%. manufacturing and service industries, shows that over+C all customer satisfaction has been declining slightly in recent years. 't is unclear whether this has resulted from a decrease in product and service &uality or from an increase in customer e(pectations. 'n either case, it presents an opportunity for companies that can consistently deliver superior customer value and satisfaction.

NEED "OR CU!TOMER RETENTION
46

raditional marketing theory and practice have focused on attracting new customers rather than retaining e(isting ones. oday, however, the emphasis is shifting. 2eyond designing strategies to attract new customers and create transactions with them, companies are going all out to retain current customers and built lasting relationships with them. =acing an e(panding economy and be useful in providing a framework.

IM*ORTANCE O" CU!TOMER !ATI!"ACTION

G. 0arge number of competing brands or products are available in the market. B. 2etter brands 3products4 or better substitutes are coming in the market to replace old brand or products. @. $onsumer awareness has gone up tremendously due to mass advertising on electronic media. /A. 2etter technology available to give better &uality. //. ,igher productivity will mean lower price or even sustenance of price. /1. he marketing companies are interested to achieve long term ob!ectives through customer satisfaction.

T.E CU!TOMER !ER-ICE TRIANG0E
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he customer is at the center of this triangle, because every activity must be seen in terms of its impact on customer satisfaction, under it has been observed that the customer service triangle developed by #lbrecht and Remke will standing how the customer views the organization"s performance rather than accepting an internal view.

CU!TOMER */RAMID

If having a %ot of c&stomers are the keys to 3&siness s&ccess

/. # small number of potential customer who give you a lot of business. 1. # large number of medium volume customers. 5. Many more low volume customers who do business with you only once in while, or at a low purchasing level. ). # number of starters, new customers, who may not turn out to be good ones.

a: .ot *ros#ect J people who are ready to buy and you are on the short list. 3: Barm #ros#ects J people who will probably buy in the short term, and you have a reasonable chance of getting the business. c: Co%' #ros#ects J People who you are in touch with, but who are not ready to buy or they have indicated that they are not happy ': about doing business with you. e: 0ea' J responses from marketing activities which have not yet been &ualified as one type of prospects or another.

INTERE!T

48

'nterest may be viewed as a state of mind that e(ists when a consumer perceives a need and or it"s aware of alternative products, capable of satisfying that need. $onsumer interest is indicated in the consumers willing ness to seek further information about product. #t this stage the consumer to actively involved in the buying process and pays attentions to the product. ,owever if he loses interest during this involvement his or her attention will be diverted and the buying decisions process will break down. he evaluation stage represents the stage of mental trail of the product. *uring this stage the consumer giving relative value weights to different products brands on the basis of accumulated stock of product information and drew conclusions about their relative satisfaction giving potential. #fter this evaluation the consumer develops the intention either to purchase or not will however, depend on the strength of the positive intention this is the intension to buy.

O&t #&t
<ut put is the result of the inputs of consumer behavior. 't emerges after theses inputs are duly proceed. behavior. he consumer out put is composed of purchase and post purchase

*&rchase
Purchase is a consumer commitment for a product. 't is the terminal stage in the buying decision process that completes a transaction. 't occurs either as a trial and or adoption. 'f a consumer is buying something for the first time then from the behavioral view point it may be regarded as a trail. his trail enables him to accumulate e(perience about the product purchased. 'f this e(perience is positive in terms of satisfaction then repeated purchases may occur otherwise not repeat purchases. 'n this process, the consumer deliberates within himself before he finally makes a purchase more over this deliberation relates to many variable and it aimed at solving consumption problems. #mongst there problems, the first and foremost is to decide whether spend money or the solve it. <nce a decision is taken to spend money the second problem is to

49

decide what to buy because the needs are multiple and resources scarce. herefore, needs are to be ranked in terms of priority. he subse&uent consumption problem relates to the places from where to buy, the made of purchase 3 large M small &uantities4 cash M credit. Purchases and the live and the last, the sellerM shop keeper, from whom to buy. his whole consumption behavior consists of both physical and mental activities. he physical activities involve visiting a shop, e(amining product selecting products or eating or drinking out side, that is the actual act of consumption mental activities on the other hand, involve deliberations with in one forming of attitudes, perceiving communication materials and forming of attitudes, perceiving communication materials and learning to prefer a particular brand of product. Marketing is a human activity at satisfactory needs and wants through e(change process. Marketing is challenging e(citing. e(perience and analytical ability. he solving of marketing problems re&uired insight, he marketing manager must decide which strategy of

combination of methods he should adopt for increasing his sales and profitability. ,e must also keeping touch with the changing needs and desires of the consuming public as well as this competitors activity. hus, marketing is interesting as it re&uired, the manager to be dynamic and not complacent for continuous prosperity of his organisation.

B.AT MARKETING DOE!

Marketing mi( refers to the amounts and kinds of marketing variables, the firm using at a particular time. Marketing mi( is the set of marketing tools that the firm uses to pursue its marketing ob!ectives of four Ps namely /. Product 1. Price 't is advisable to understand what is included in marketing activities. Marketing is invariable connected with the insights or research into customer"s behaviour namely what the customer"s want, need, prefer and value, who are the prospects and

50

where they live, their incomes and mode of spending, how they make purchase decisions and so on. Marketing deals with the product policy ie what type of product or products should be manufactured. he determination of price and the terms of payment are also of the products and whether to insist on cash payments or allow the customer deferred payment facility must also be considered while formulating the product policy. 5. Place 3*istribution4 ). Promotion 'n each of the marketing mi( elements the four P"s J produce price, place and promotion J there are several sub elements. =or e(ample, Packing is one of the subs J elements of product and transportation is one of the sub+elements of place or distribution. marketing specialists added the package to the marketing mi(. he “Marketing mi( variables” are often termed as “controllable variables” of marketing. he marketing manager is free to choose, alter and control these variables, as he likes. #ssembling and managing the marketing mi( is the cru( of the marketing task. he modern

>: *RODUCT 1
Product is the first of the four P"s of marketing. hough each of four P"s has its uni&ue

position in the marketing mi( of the firm. Product has very special position, as it constitutes the substantive element in any marketing offer. #lmost everything that we come across is our daily life is produce. #ll the products have some utility behind them, all of them cater to and satisfy some needs of some people. %o a product can be defined as a “a need satisfying entity” #ccording to >illiam L %tanton “ a product is a comple( of tangible attributes, including packing, color, price, manufacturers prestige and retailers prestige and manufacture"s and retailers services which the buyer may e(pect as offering satisfaction of wants or needs.. # product is a comple( cluster of value satisfaction. # customer attaches value to the product in proportion to its perceived ability to help solve his problems or meet his needs. he

51

product mi( is one of the elements in the product policy.

he product policy decisions are made

of product mi(, product items and product line, which make the product planning effective. Product mi( is the list of all products offered for sale by a company. product mi( has three dimensions, it has breadth and consistency. .ew product development is one of the most important components of product. Policy and product management. 't is not enough if the e(isting product lines and products are applied properly, products positioned effectively and brand decisions are taken wisely. # progressive firm always consider new product development as cordial element of its Product policy he

T.E *RODUCT 0I"E C/C0E

# new product progresses through a se&uence of stages from introduction to growth, maturity, and decline. mi(. he product revenue and profits can be plotted as a function of the life+cycle stages as shown in the graph below: his se&uence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing

INTRODUCTION !TAGE

52

'n the introduction stage, the firm seeks to build product awareness and develop a market for the product. • • • • he impact on the marketing mi( is as follows:

*ro'&ct branding and &uality level is established, and intellectual property protection such as patents and trademarks are obtained. *ricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Distri3&tion is selective until consumers show acceptance of the product. *romotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

Growth !tage

'n the growth stage, the firm seeks to build brand preference and increase market share. • • • • *ro'&ct &uality is maintained and additional features and support services may be added. *ricing is maintained as the firm en!oys increasing demand with little competition. Distri3&tion channels are added as demand increases and customers accept the product. *romotion is aimed at a broader audience.

Mat&rity !tage

#t maturity, the strong growth in sales diminishes. $ompetition may appear with similar products. he primary ob!ective at this point is to defend market share while ma(imizing profit.

•

*ro'&ct features may be enhanced to differentiate the product from that of competitors.

53

• • •

*ricing may be lower because of the new competition. Distri3&tion becomes more intensive and incentives may be offered to encourage preference over competing products. *romotion emphasizes product differentiation.

Dec%ine stage

#s sales decline, the firm has several options: • • • Maintain the product, possibly re!uvenating it by adding new features and finding new uses. ,arvest the product J reduce costs and continue to offer it, possibly to a loyal niche segment. *iscontinue the product, li&uidating remaining inventory or selling it to another firm that is willing to continue the product.

!&##%iers an' 3&siness services
hese are short listing goods and services that facility developing listing goods and services that facility developing 3or4 managing the finished goods.

+ase' on the characteriLation *ro'&ct can 3e c%assifie' into three gro&#s
/. *urable goods: *urable goods are tangible goods that normally service many uses. here are normally re&uire more personnel setting H service and re&uire more seller generators. 1. .on durable goods: .on durable goods are tangible goods. .ormally consumed in one or a few uses. hese goods one consumed &uickly and purchased fre&uently. 5. %ervices: %ervices are intangible, inseparable, variable and possible products. hey normally re&uire more &uality control, suppliers credibility and adaptability.
54

Marketing have traditionally classified products on the basis of varying product characteristics. >ith this background we are ready to e(amine company decision regarding the product mi(, product lines, and individual products, branding, packaging, labeling.

*RODUCT MIC
# product mi( is the set of all product lines and items that a particular seller offers for sale to buyers. he company"s product mi( will have a certain breadth, length, depth and consistency.

=our dimensions of product mi( /. #dd new product lines 1. 0engthen each product line 5. #dd more products variants to each product ). Purse more product line consistency or less Product mi( planning is largely responsibility of the company"s strategy planners. $onsumer products are classified into three types. %hopping goods, specialty goods and unsought goods. 'ndustrial products are destined to be sold primarily for use in producing other goods or rendering services. 'ndustrial goods can be classified in terms of how they enter the production process and their relative costliness. >e can distinguished three groups: Material and parts, capital items, and suppliers and services. Material and parts: ?oods that are enter the manufacturers product completely they fall into two classes. 8aw materials and Manufacturing materials and parts. $apital items: ?oods that enter the furnished product partl

*ROMOTION

55

Promotion is the final element in the marketing mi( after the nature of the product is decided its price fi(ed and the method of distribution decided the manufacturer has to take effective steps in meeting the consumers in the market. 2asically promotion is an “;(ercise in the information perusal and influences”. Promotion mi( is also called marketing communication mi(

"OUR MA,OR TOO0!
♦ #*-;8 '%'.? ♦ %#0;% P8<M< '<. ♦ PF20'$ 8;0# '<. ♦ P;8%<..;0 %;00'.?

AD-ERTI!ING
he #merican Marketing #ssociation has given a definition for advertising “ #dvertising is only paid form of non personal presentation of ideas, goods or services by an identified sponsor to the customers.” “'dentify the consumer needs and to satisfy the wants of them according to the desire of consumers.” his is non personal mass communication that the sponsored has paid for and in which the sponsor is clearly identified. he most familiar forms of ads are found in the broad cast 3electronic media H print media4. ,owever they are many other advertising alternatives form direct mail to billboards and the telephone directory yellow pages.

!A0E! *ROMOTION

56

't is demand stimulating activity designed to supplement encourage the purchase. forces.

advertising and facilitate

personal selling. 't is paid for by the sponsor and fre&uently involves a temporary incentives to he ma!ority however is designed to encourage the company sales his later categories called trade promotion including in sales promotion is wide

spectrum of activities, such as contests, trade shows, in store display, rebates samples, premiums, discounts H coupons.

*U+0IC RE0ATION!
't encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and options towards an organization and its products. Fnlike advertising H personal selling, it does not include specific sales messages. he targets may be customers, stockholders, the ?overnment agencies or a special interest group.

*ER!ONA0 !E00ING
't is the direct presentation of a products the prospective customers by a representative of the organization selling it. Personal selling takes place face to face or over the telephone and it may be directed to a intermediary or a final consumer. #cross all business, more money is spent on personal selling than any other form of promotion.

!IGNI"ICANCE O" *ROMOTION
♦ o reduce physical distance between producer H consumer

♦ =orm of informing to the consumers as well as educating the middlemen ♦ ,igh level of employment

NEED O" *ROMOTION
♦ ♦ ♦ o increase potential consumers o disseminate information o stir up the competition among the industries

57

♦

o motion the end users to use the product

♦ *epicting the feasibility of the product

RO0E O" MOTI-ATION IN CON!UMER +E.A-IOUR ?ary *essior defines motivation as a reflection of Ca personKs desire to fulfill certain needs. M.8.Lones has defined the term as being concerned with how behaviour gets started, is energised, is sustained, is directed, is stopped and what kind, of sub!ective reaction is present in the organisation while all of this is going on. hus, a motive implies two components: 3i4 a mechanism to arouse bodily energy, and 3ii4 a force that provides direction to that bodily energy.

The "irst Com#onent: Aro&sa% com#onent

#ctivates tension or restlessness in the body. 't does not provide any direction how to release that bodily tension. 't is an inner feeling and not a direction to act. his state of tension can be seen in a new born baby. ,e weeps only when he feels hunger.

The !econ' Com#onent: *irective component suggests how such aroused energy is released. 't provides direction for action towards some goal in the individualKs environment. hus, when our hunger is aroused we are usually directed towards particular food to satisfy the hunger. -arious concepts have been developed to offer e(planation of how motives e(ert their directional influences on consumers.

58

-a%&eH !atisfactionH an' 4&a%ity $onsumers usually face a broad array of products and services that might satisfy a given need. ,ow do they choose among these many products and servicesQ $onsumers make buying choices based on their perceptions of the value that various products and services deliver.

C&stomer va%&e is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. =or e(ample, =ed;( customers gain a number of benefits. he most obvious are fast and reliable package delivery. ,owever, when using =ed;(, customers also may receive some status and image values. Fsing =ed;( usually makes both the package sender and the receiver feel more important. >hen deciding whether to send a package via =ed;(, customers will weigh these and other values against the money, effort, and psychic costs of using the service.

C&stomer satisfaction depends on a productKs perceived performance in delivering value relative to a buyerKs e(pectations. $ustomer satisfaction is closely linked to &uality. 'n recent years, many companies have adopted total K&a%ity management DT4ME programs, designed to constantly improve the &uality of their products, services, and marketing processes. Suality has a direct impact on product performance and hence on customer satisfaction. 'n the narrowest sense, &uality can be defined as Cfreedom from defects.C 2ut most customer+ centered companies go beyond this narrow definition of &uality. E(changeH TransactionsH an' Re%ationshi#s Marketing occurs when people decide to satisfy needs and wants through e(change. ;(change is the act of obtaining a desired ob!ect from someone by offering something in return. ;(change is only one of many ways that people can obtain a desired ob!ect. =or e(ample, hungry people could

59

find food by hunting, fishing, or gathering fruit.

hey could beg for food or take food from

someone else. or they could offer money, another good, or a service in return for food. #s a means of satisfying needs, e(change has much in its favor. People do not have to prey on others or depend on donations, nor must they possess the skills to produce every necessity for themselves. hey can concentrate on making things that they are good at making and trade them for needed items made by others. hus, e(change allows a society to produce much more than it would with any alternative system. ransaction marketing is part of the larger idea of re%ationshi# marketing: 2eyond creating short+term transactions, marketers need to build long+term relationships with valued customers, distributors, dealers, and suppliers. hey want to build strong economic and social connections by promising and consistently delivering high+&uality products, good service, and fair prices. 'ncreasingly, marketing is shifting from, trying to ma(imize the profit on each individual transaction to building mutually beneficial relationships with consumers and other parties. 'n fact, ultimately, a company wants to build a uni&ue company asset called a marketing network. # marketing network consists of the company and all its supporting stakeholders: customers, employees, suppliers, distributors, retailers, ad agencies, and others with whom it has built mutually profitable business relationships. 'ncreasingly, competition is not between companies but rather between whole networks, with the prize going to the company that has built the better network. he operating principle is simple: 2uild a good network of relationships with key stakeholders and profits will follow,@

hus, customer satisfaction remains an e(tremely important component in customer loyaltyPa company will find it difficult to earn customer loyalty without first earning high levels of customer satisfaction. ,owever, companies should also carefully e(amine customer loyalty itself, which often is a better indicator of customer attitudes and behavior.

Growing F!hare of C&stomerF

60

2eyond simple attracting and retaining good customers, marketers want to constantly increase their share of customer. hey want to capture a greater share of the customerKs purchasing in their product categories, either by becoming the sole supplier of products the customer is currently buying or by persuading the customer to purchase additional company products. hus, banks want a greater Cshare of wallet,C supermarkets want to increase their Cshare of stomach,C car companies want a greater Cshare of garage,C and airlines want a greater Cshare of travel.C

61

<ne of the best ways to increase share of customer is through cross+selling. $ross+selling means getting more business from current customers of one product or service by selling them additional offerings. =or e(ample, the recent merger between $itibank and ravelers is helping both units of the $itibank ?roup to cross+sell the companyKs services. # new ravelers =inancial ;dge program allows independent ravelers agents to introduce a number of $itibank products to their insurance clients, such as credit cards and student loans, as well as an e&uipment leasing program for commercial customers. %imilarly, under a new $itibank Partners program, $itibank representatives can offer a fuller slate of financial services to their customers, such as insurance from ravelers and mutual funds from %alomon %mith 2arney 3another $itibank ?roup unit4. o support the effort to cross+sell a broader range of services for customers, $iti banks personal bankers will be dubbed Cclient financial analystsC and its branches will be called C$itibank =inancial $enters.C #s a result, $itibank ?roup will obtain a larger share of each customerKs financial services dollars. +&i%'ing 0asting C&stomer Re%ationshi#s >e can now see the importance of not !ust finding customers, but of keeping and growing them as well. 8elationship marketing is oriented toward the long term. odayKs smart companies not only want to create customers, they want to CownC them for life. 'n this section, we discuss several &uestions about how companies actually build lasting customer relationships. >hat levels of relationships can companies build with their customers and what relationship+building tools do they useQ >ho is responsible for delivering customer value and satisfactionQ >hat is the role of total marketing &ualityQ C&stomer Re%ationshi# 0eve%s an' Too%s $ompanies can build customer relationships at many levelsPeconomic, social, technical, and legalPdepending on the nature of the target market. #t one e(treme, a company with many low+ margin customers may seek to develop basic relationships with them.

62

=or e(ample, Procter H ?amble does not phone all of its

ide customers to get to know them

personally and e(press its appreciation for their business. 'nstead, PH? creates relationships through brand+building advertising, sales promotions, a /+BAA customer response number, and its ide $lothesline >eb site 3www.tide.com4. #t the other e(treme, in markets with few customers and high margins, sellers want to create full partnerships with key customers. =or e(ample, PH? customer teams work closely with >al+Mart, %afeway, and other large retailers. 2oeing works closely with #merican, #irlines, *elta, and other air lines in designing its airplanes and ensuring that 2oeing airplanes fully satisfy their re&uirements. 'n between these two e(treme situations, other levels of relationship marketing are appropriate. oday, more and more companies are developing customer loyalty and reten tion programs. 2eyond offering consistently high value and satisfaction, marketers can use a number of specific marketing tools to develop stronger bonds with consumers./) =irst, a company might build value and satisfaction by adding financial benefits to the customer relationship. =or e(ample, many companies now offer fre&uency marketing programs that reward customers who buy fre&uently or in large amounts. #irlines offer fre&uent flier programs, hotels give room upgrades to their fre&uent guests, and supermarkets give patronage refunds. # second approach is to add social benefits as well as financial benefits. ,ere the company increases its social bonds with customers by learning individual cus tomersK needs and wants and then personalizing its products and services. # third approach to building customer relationships is to add structural ties as well as financial and social benefits. 8elationship marketing means that marketers must focus on managing their customers as well as their products. #t the same time, they donKt want relationships with every customer. 'n fact, there are undesirable customers for every company.

63

Fltimately, marketing involves attracting, keeping, and growing profitable customers. hus, in addition to assessing the value that it delivers to customers, a firm should actively measure the value of individual customers to the firm 3see Marketing+,ighlight /B./4. <nce it has identified profitable customers, it can create attractive offers and special handling to bind these customers to the company for a lifetime. 2ut what should the company do with unprofitable customersQ 'f it canKt turn them into profitable ones, it may even want to CfireC customers that are too unreasonable or that cost more to serve than they are worth. De%ivering C&stomer -a%&e an' !atisfaction) Marketers alone cannot deliver superior customer value and satisfaction. #lthough it plays a leading role, marketing can be only a partner in attracting, keeping, and growing customers. 8elationship marketing re&uires that marketers must work closely with other company departments to form an effective value chain that serves the customer. Moreover, the company can be effective only to the e(tent that it works effectively with its marketing system partners to form a competitively superior value+delivery network. >e now take a closer look at the concepts of a company value chain and value+delivery network. Com#any -a%&e Chain. ;ach company department can be thought of as a link in the companyKs value chain:>7 hat is, each department carries out value+creating activities to design, produce, market, deliver, and support the firmKs products. he firmKs success depends not only on how well each department performs its work, but also on how well the activities of various departments are coordinated.

64

C.A*TER 1Ⅴ

65

>: Reasons for #referring T-! +ran': TA+0E1>:

*artic&%ars ?ood mileage *urability ;conomical %afety Tota%

No: of Res#on'ents 56 1) 5/ /A >88

*ercentage 56T 1)T 5/T /AT /AA

Gra#hica% re#resentation of Reasons for #referring T-! 3ran'

Inter#retation >e can see from the above graph among /AA respondents surveyed, the most of the respondents i.e., 56T felt that good mileage was the reasons for their preferring -% brand. #nd 1)T felt that the durability was the reason for their preference. <ut of /AA respondents surveyed, 5/T felt that economical was the cause of their preference. -ery few i.e., /AT of respondents felt that safety was the reason for preferring -% brand.

<:C&stomer o#inion regar'ing factorsH #ro'&ct attri3&tes motivate' them to #&rchase T-! -ehic%e
66

TA+0E <: *artic&%ars Product Price Promotional schemes *ealers Tota% No: of Res#on'ents )B 51 /1 B >88 *ercentage )BT 51T /1T BT /AA

*ro'&ct attri3&tes motivate' them to #&rchase T-! -ehic%e:

Inter#retation >e can see from the above graph inkling as to product attributes that are most appealing to the respondents. • Ma!ority of more than half of the respondents surveyed considered the product to be the most appealing attribute. >hile around 51T of respondents considered price to be an appealing attribute and /1T felt that promotional schemes of the company to appealing attribute. A: Reasons for 3&ying T-! vehic%e from K&sa%ava Motors #vt: 0imite': TA+0E *artic&%ars No: of Res#on'ents *ercentage

67

%ervice >ide range of choice =inance facility convenience Tota%

57 /6 /@ 5A >88

57T /6T /@T 5AT /AA

Gra#hica% re#resentation

Inter#retation >e can see from the above graph among /AA respondents surveyed, the most of the respondents i.e., 57T felt that service was the reasons for reason for buying -% vehicle from Kusalava motors pvt.limited. #nd 1)T felt that the wide range of choice was the reason for their preference. <ut of /AA respondents surveyed, 5/T felt that finance facility was the cause of their preference. -ery few i.e., /AT of respondents felt that convenience was the reason for preferring -% brand.

; :C&stomers o#inion regar'ing s&fficient n&m3er of co%ors avai%a3%e in their vehic%e: TA+0E O#inion No: of res#on'ents
68

#ercentage

#vailable .ot #vailable otal

B1 /B /AA

B1T /BT /AA

Inter#retation we can see from the above graph among /AA respondents the most of highly ma!ority of the respondent"s i.e., B1T satisfied with the availability of colors in their -% vehicle. -ery few i.e., /BT are not satisfied.

9 :C&stomers o#inion regar'ing the com#any #rovi'e any ty#e of warranty on vehic%e TA+0E

69

O#inion 9es .o otal

No: of res#on'ents @1 B /AA

#ercentage @1T BT /AA

Inter#retation we can see from the above graph among /AA respondents the most of highly ma!ority of the respondent"s i.e., @1T said that the company provides any type of warranty on -% vehicle. -ery few i.e., BT are not satisfied warranty on -% vehicle.

= :O#inion of c&stomer that how %ong they have 3een &sing this vehic%e: TA+0E *artic&%ars No: of Res#on'ents *ercentage

70

0ess than 5 months 0ess than 7 months 7 months to one year #bove one year Tota%

5A 56 1A /6 /AA

5AT 56T 1AT /6T /AA

Inter#retation 'n the above graph show that the ma!ority of the respondents i.e. 56T have been using this vehicle from for last si( months, and 5AT of respondents are have been using this vehicle from for last 5 months. <ut of /AA respondents few members are using this vehicle from less than one year and above one year.

? :C&stomers o#inion regar'ing satisfie' with mi%eage of the vehic%e: TA+0E *artic&%ars No: of res#on'ents *ercentage

71

highly %atisfied %atisfied .either satisfied nor dissatisfied *issatisfied ,ighly dissatisfied otal

5 61 /6 16 6 /AA

5T 61T /6T 16T 6T /AA

Inter#retation 'n the above graph show that the ma!ority of the respondents i.e. 61T are satisfied with the mileage of the vehicle, and 16T of respondents are dissatisfied with the mileage of the vehicle. <ut of /AA respondents few members are highly dissatisfied with the mileage of the vehicle.

@ c&stomer$s o#inion regar'ing the avai%a3i%ity of s#are #arts: Ta3%e O#inion #lways available No: of res#on'ents B1 *ercentage B1T

72

%ometimes available 8arely available otal

/A B /AA

/AT BT /AA

Inter#retation     B1 respondents said that the spare parts are available. /A respondents said that the spare parts are sometimes available. B respondents said that the spare parts are rarely available. Most of the respondents are satisfied with the availability of spare parts.

7 c&stomer$s o#inion regar'ing the vehic%e com#%aints han'%e' 3y the com#any: Ta3%e O#inion No: of res#on'ents *ercentage

73

;(cellent ?ood #verage Poor Tota%

6B 11 /1 B >88

6BT 11T /1T BT >88

Inter#retation 'n the above graph the most of the respondents were satisfied by the way company handling the complaints. <ut of /AA respondents very few respondents are not satisfied.

>8 C&stomers o#inion regar'ing the maintenance of vehic%e: Ta3%e O#inion No: of res#on'ents *ercentage

74

0ow maintenance #verage maintenance ,igh maintenance otal

/A 61 1B /AA

/AT 61T 1BT /AA

Inter#retation 'n the above graph the most of the respondents i.e. 61Tof respondents felt that the maintenance of the vehicle is average, and /AT of respondents said that the maintenance of the vehicle is low. <ut of /AA respondents very few respondents i.e. B T of respondents said that the maintenance of the vehicle is high.

>> C&stomers o#inion regar'ing the servicing charges on vehic%e: Ta3%e

75

O#inion More than estimated #s per the estimated 0ow otal

No: of res#on'ents A GB 11 /AA

*ercentage A GBT 11T /AA

Inter#retation 'n the above graph the most of the respondents i.e. GBTof respondents said that servicing charges are given as per the estimated. #nd 11T of the respondents are felt that low servicing cost charged on vehicle.

><: Rate the e(#%anation given 3y service a'visor of work 'one on yo&r vehic%e: Ta3%e O#inion No: of res#on'ents *ercentage

76

;(cellent ?ood #verage Poor Tota%

51 )6 /6 B >88

51T )6T /6T BT >88

Inter#retation 'n the above graph the most of the respondents 51T of respondents are felt that the e(planation given by service advisor of work done on vehicle is e(cellent. #nd )6T respondents are opined that it was good, out of /AA respondents /6T felt it was average, and very few respondents felt that it was unacceptable.

>A Rate the K&a%ity of service at k&sa%ava T-!: Ta3%e O#inion No: of res#on'ents *ercentage

77

;(cellent ?ood =air Poor Tota%

1/ 6@ /6 6 >88

1/T 6@T /6T 6T >88

Inter#retation 'n the above graph the most of the respondents 1/T of respondents are felt that the &uality of service is e(cellent at Kusalava -%. #nd 6@T respondents are opined that it was good, out of /AA respondents /6T felt it was average, and very few respondents felt that it was unacceptable at Kusalava -%.

>; C&stomers o#inion regar'ing the 'e%ivery service of k&s%ava T-! #vt:%imi%e': TA+0E
78

O#inion Prompt *elay otal

No: of res#on'ents B6 /6 /AA

#ercentage B6T /6T /AA

Inter#retation • • 'n the above graph the most of the respondents B6T of respondents are felt that promptly the delivery service of kusalava -% pvt.limited. Kusalava -% pvt.limited. #nd very few respondents said that i.e. /6T of respondents are said that they are not satisfied with the delivery service of kusalava -% pvt.limited.

>9 C&stomers o#inion regar'ing 'o yo& s&ggest a va%&e' service Msa%es for yo&r frien's in k&s%ava T-!: TA+0E O#inion No: of res#on'ents
79

#ercentage

9es .o otal

@1 B /AA

@1T BT /AA

Inter#retation 'n the above graph the most of the respondents @1T of respondents are felt that that they are suggesting a valued sales Mservice for our friends in Kusalava -%.very few respondents are said that they are not interest to suggesting a valued sales Mservice for our friends in Kusalava -%.

80

$,#P ;8+Ⅵ

81

"INDING!

•

Most of the respondents felt good mileage was the reason for the preference of -%, followed by low price of spare, durability and economical and safety respectively.

•

# ma!ority of the respondents were influenced by commercial sources in their purchase decision, while minority of them was influenced by personal sources. Ma!ority of respondents were satisfied with performance of -% two wheeler, while less than fifth of them were not satisfied. Most of the respondents depend upon their own finances. Ma!ority of the respondents chose a finance source, mainly to the low rate in interest charged by them, while the rest chose it due to its fle(ibility and the few formalities involved. he analysis indicates that ma!ority of the respondents were satisfied with the maintenance of the vehicle. he analysis indicates that ma!ority of the respondents were satisfied with the delivery service of kusalava -% pvt.limited. he analysis indicates that ma!ority of the respondents were satisfied with the Suality of service is e(cellent at Kusalava -%.

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82

!UGGE!TION!

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*ealer has to provide service like mileage ad!ustments. #M$ services, etc., *ealer has to deliver the orders &uicker in conte(t of satisfying the customers. %ome technical programs are to be conducted by the leader in order to upgrade the skills of worker and employees. #s some of the respondents are wishing to other brands, dealer has to maintain better relationship with the customers. *ealer has to introduce some new schemes to attract employees. $ompanies have to increase the awareness level in buyers through print media $ompany has to provide more festival offers and off seasons offers to all customers. $ompany has to attract the customer by giving free gift hampers at the time of purchase.
83

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$ompany has to provide the free demo show to the customers. $ompany has to conduct the communication classes to the sales e(ecutives.

+I+0IOGRA*./

>: *RINCI*0E! O" MARKETING PHILIP KOTLER GARY ARMSTRING J.C. GANDHI <: MARKETING RE!EARC. TULL DENALD & HEWKINS A: MARKETING MANAGEMENT V.S.RMA SWAMY ;: CON!UMER +E.A-IOUR SCHIFFOMANLEAN KANUKLESLIE 9: MAGA5INE!MNEB! *A*ER!

84

BUSINESS WORLD =: T.E ECONOMIC TIME! BUSINESS TO DAY BUSINESS WORD

s4&estionnaire on c&stomer satisfaction

.ame: ZZZZZZZZZZZZZZZZZZZZ

#ddress: ZZZZZZZZZZZZZZZZZZZZZ

$ontact no: ZZZZZZZZZZZZZZZZZZZZZZZZZ

-ehicle 8eg. no.ZZZZZZZZZZZZZZZZZZZZZZZZZ

>E Bhy 'i' yo& #refer T-! 3ran'J +eca&se of

85

a4 ?ood mileage

b4 durability

c4 economical

d4 safety

<E Bhich attri3&tes motivate' yo& to #&rchase T-! vehic%eJ

a4 Product

d4 Price

c4 Promotional scheme s

d4 *ealer

AE Bhat are the reasons for yo& to 3&ying T-! vehic%e from k&sa%ava motors #vt: 0imite'J

a4 %ervice

d4 >ide range of choice

c4 =inance facility

d4 $onvenience

;E Is there is s&fficient n&m3er of co%ors avai%a3%e in T-! vehic%esJ

a4 9es

d4 .o

9E Does the com#any #rovi'e any ty#e of warranty on vehic%eJ

a4 9es

d4 .o

=E Bhat is the maintenance of yo&r vehic%e$J

a4 0ow maintenance

d4 #verage maintenance

86

c4 ,igh maintenance

?E .ow %ong yo& have 3een &sing this vehic%eJ

a4 0ess than 5 months

d4 0ess than 7 months

c4 7 months to one year

@E Are yo& satisfie' with mi%eage of the vehic%eJ

a4 ,ighly satisfied

d4 satisfied

c4 .either satisfied nor dissatisfied

d4 dissatisfied

e4 ,ighly dissatisfied

7E .ow is the s#are #arts avai%a3i%ityJ

a4 #lways #vailable

d4 %ometimes available

c4rarely available

87

>8E .ow 'o the com#any res#on'ing on c&stomer com#%aintsJ

a4 ;(cellent

d4 ?ood

c4 #verage

d4 poor

>>E .ow is the servicing cost charge' on yo&r vehic%eJ

a4 More than estimated

d4 as per the estimate

c4 0ow

><E Rate the e(#%anation given 3y service a'visor of work 'one on yo&r vehic%eJ

a4;(cellent

b4 ?ood

c4 #verage

d4 Fn acceptable

>AE Rate the K&a%ity of service at k&sa%ava TvsJ

a4 ;(cellent

b4 ?ood

c4 fair

d4 poor

>;E *%ease give the o#inion on 'e%ivery service of k&sa%ava Tvs #vt:0t'J

a4Prompt

b4delay

>9E Do yo& s&ggest a va%&e' sa%es Mservice for yo&r frien's in k&sa%ava T-!J

88

a4 9es

b4 .o

89