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Project MBA
INTRODUCTION:
The two wheeler industry has been expanding rapidly. Gone are the days
when processing a two wheeler was seen as a
luxury. Now a day it is viewed as a mere necessity. Prior, sale of two wheelers
was mainly confined to urban areas but
lately in rural areas the bicycles are being replaced by power driven two
wheelers such as scooters and motorcycles. Not
only this, the industry has also customers ranging from all demographic
segments. It has been common that even school
going children are driving two wheelers. The women customers are also
increasing due to increase in women literacy and
employment. If getting a new customer is difficult, then retaining a current
customer is more difficult one and not only that
it is estimated that the cost of attracting a new customer is five times
retaining the current customer. It requires a great
deal of effort to induce satisfied customer to switch away from their current
preference. Thus customer attitude is been
given top priority in todays competitive world.
product range has achieved a respectful market shone with strong dealer
network and excellent after sales services. Even
though there is waiting period for some products, some are available across
the shelf dealerships are upon not only at
metros, but also at urban and semi urban areas. This is to provide
prompt after sales services .it has opened class of art
show rooms and work shops at all the places. There is a need to study to
efforts put in by the Company, Dealers and
Service network to study the extent to which customers are satisfied with the
product, service and allied services etc.
Hence it is proposed to study the Customer Satisfaction levels of Honda
Customers with respect to the product
performance, after sales service and other allied services like finance facility,
availability of spares and accessories etc.
To study the customer handling practices prior to sale, during sale and after
sale and assesses the satisfaction levels of customers.
METHODOLOGY:
The study is conducted basing on Primary and Secondary Data Primary data
is collected by administering
a structured questionnaire to customers who visit the dealer for purchase
and service. Data is also
collected through personal discussions with the dealer, sales and service
staff and personal observation
made during sale and service. Secondary data is obtained from company
records, web site, published
articles etc.
SAMPLING:
Convenient Sampling method is adopted for selecting the
respondents. Care is taken to cover
customers of all types of products and age groups etc.
CHAPTER II
CUSTOMER SATISFACTION
INTRODUCTION:
Satisfaction is a persons feelings of pleasure (or) is appointment resulting
from comparing a products,
perceived performance in relation to his (or) her expectation. Satisfaction is
a function of perceived
performance and expectations. If the performance falls short of expectation,
the customer is dissatisfied. If the performance matches the expectations,
the customer is satisfied. If
the performance exceeds expectations, the customer is highly satisfied (or)
delighted. Customer
3.They are not an interruption to own work, they are the purpose of it.
4.They are doing us favor when they come in, we are not doing them favor
by serving them.
6. They are not just statistic. The customers are human beings with flesh and
blood having feelings and emotions.
7.People come to us with their needs and wants. It is our job to fulfill them.
8.They are the lifeblood of every business without whom the door of
the business would have been closed.
share profitability as well as profitability and share holder value creation hav
e been the subject of consid
erable research over the years and the linkages have been proven many
times.
It has been found that some customers are, by native tendency, more likely
to move while others are not. Therefore even
for some level of satisfaction or dissatisfaction, some customer will remain
with the brand they are loyal to while others
will switch. Simply because they are
more prone to taking risks and more easily susceptible to the blandishments
of competitors andinherently more fickle. This
can be represented in four way matrix as given below High
1. Safe Customer Habitual Switches Satisfaction with 3. The Patient ones
High rise Production Low Customer Classification by
Satisfaction and Mobility1.The Safe Customers are those who are satisfied
and not likely to move.
2.The habitual switches are happy and still likely to switch.
3.The patient ones will stay on regardless but should not be taken for
granted. Their satisfaction can be improved profitably
as they are inherently less likely to switch. Todays customers are global and
have high degree of need for contrition,
recognition, approval and respect. So many companies believe that customer
satisfaction can make the company
more profitable to some extent as
It as a more process aimed at enhancing customer share.
It builds goodwill in the market, which in turn generates additional traffic to
the outlet.
It is a real experience and a rich insight is to customers min to hit the bulls
eye with carefully designed marketing
strategies
A highly effective technique is to keep of buying habits, intentions, self
image,
spending patterns, customer develops a sense of belonging in then and a sof
t corner for thecompany itself.
than complaint. The result is that the company has needlessly lost
customers. Therefore, companies cant use complaint
level as a measure of customer satisfaction. Responsive companies obtain a
direct measure of customer satisfaction by
conducting periodic surveys. They send questionnaire or make telephone
calls to random sample of their recent
customers to find out how they feel about various aspects of the companys
performance. Customer satisfaction can
be measure in a number of ways. It can be measured directly by asking
indicate how satisfied you are with service on
the following scale, highly dissatisfied ,indifferent satisfied, highly satisfied
(Directly reported satisfaction). Respondents
can be asked as well as to rate how much they expected
of a certain attribute and also much. They experienced (desired
dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any
improvements they could suggest (Problem analysis) finally, companies
could ask respondents to rate various elements of
the offer in items of the importance of the each of and how were the
organization performed each element
(important performance ratings). Its last method helps the company to know
if it is under performing onimportant
elements and over performing on relatively unimportant elements.
C.Ghost shopping:
Another useful way to gather a picture of customers satisfaction is to hire
persons to pose
as potential buyers to report their finds on strong and weak points they expe
rienced in buying the companys and
competitors products
delivery on time; delivery order completeness and so on. Yet if the company
had to sell out very element
in detail customers would face huge questionnaire.
Companies should also note that managers and sales persons could
manipulate their ratings on customer
satisfaction. They can be especially nice to customers just before the
survey. They can also try excluding
unhappy customers from being included in the survey. Some customers may
want to express high
dissatisfaction in order to receive more concession.
groups that might help the buyer gets satisfaction. Such as a business
private or government agencies or the buyer
might simply stop buying the product or warn friends. In all these cases the
seller losses in having done a poor job of
satisfaction to the customer.
CHAPTER III
Profile of Honda
HONDA MOTOR COMPANY LTD:
Honda has been the world's largest motorcycle manufacturer since 1959 as
well as the world's largest manufacturer of
HISTORY:
From a young age, Honda's founder, Soichiro Honda (November 17, 1906
-August 5, 1991) had a great interest in
automobiles. He then established the Honda Technical Research Institute in
Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines.
Calling upon18,000 bicycle shop owners
across Japan to take part in revitalizing a nation torn apart by war, Soichiro
received enough capital to engineer his first
motorcycle, the Honda Cub. This marked15 the beginning of Honda Motor
Company, which would grow a short time later to
be the world's largest manufacturer of motorcycles by 1964.
PHILOSOPHY:
HMSI operates on a principle, which is followed worldwide by all Honda
companies. Maintaining a global viewpoint, we are
dedicated to supplying products of the highest quality, yet at a reasonable
price for worldwide customer satisfaction.
Honda's philosophy is based on the company's guiding principle and
advocates 2 fundamental beliefs:
During the 1960s, when it was a small manufacturer, Honda broke out of the
Japanesemotorcycle market and began
exporting to the U.S. Taking Hondas story as an archetype of the smaller
manufacturer entering a new
market already occupied by highly dominant competitors ,the story of their
market entry, and their subsequent huge
success in the U.S. and around the world, has been the subject of some
academic controversy. Competing explanations
have been advanced to explain Hondas strategy and the reasons for their
success. The first of these explanations was put
forward when, in 1975, Boston Consulting Group (BCG)was commissioned by
the UK government to write a report
explaining why and how the British motorcycle industry had been outcompeted by its Japanese competitors.
The report concluded that the Japanese firms, including Honda, had sought a
very high scale of production (they had made
a large number of motorbikes) in order to benefit from economies of scale
and learning curve effects. It blamed the
decline of the British motorcycle industry on the failure of British managers
to invest enough in their businesses to profit
from economies of scale and scope. The second explanation was offered in
1984 by Richard Pascale, who had interviewed
the Honda executives responsible for the firms entry into the U.S. market.
As opposed to the tightly focused strategy of
low cost and high scale that BCG accredited to Honda, Pascale found that
their entry into the U.S. market was a story of
miscalculation, serendipity, and organizational learning in other words,
Hondas success was due to the adaptability and
hard work of its staff, rather than any long term strategy. For example,
Hondas initial plan on entering the U.S. was to
compete in large motorcycles, around 300 cc. It was only when the team
found that the scooters they were using to get
themselves around their
U.S. base of San Francisco attracted positive interest from consumers that
they came up with the idea of selling the Super
cub.
AWARDS:
2011"Indian Motorcycle of the Year 2011 (IMOTY) Jury: BS Motoring , Bike
India , BBC Top Gear , Overdrive , Auto Bild India ."17
Bike of the Year CNBC TV18 Overdrive Awards 2011Bike of the Year Bloomberg/UTV Auto car Award 2011Viewers Choice
Award: Bike of the Year - Bloomberg / UTV Auto car Awards 2011.
CB Twister:
The Most Awarded Motorcycle of the Year - 2011"Bike of the Year - BS
Motoring Award 2011 .Bike of the Year up to 110CC Bike India .
Motorcycle up to 110CC - NDTV Car & Bike Awards 2011.
Premium 100CC Motorcycle Zing wheels Awards. Entry Level Motorcycle of
the Year - Auto Bild Golden Steering Awards.
CB Unicorn Dazzler:
Motorcycle up to 160CC NDTV Car & Bike Awards 2011.Sporty Motorcycle
up to 180CC Zig wheels Awards .Premium
Motorcycle of the Year - Auto Bild Golden Steering Awards.
VFR 1200F
Superbike of the Year Top Gear Automotive Technology of the Year Zig
wheels Awards.
Brand Honda:
" Most Reliable Brand - Advanced Technology Brand by Auto India Best Brand
Survey Awards 2011"
Motorsport:
Honored for Promoting 2 Wheeler racing in India 2010
Brand:
" Most Reliable Brand- Advance Technology- Quality By Apollo Auto India Best
Brand Awards 2010" Trusted Brand Award
(Gold) for Two-wheeler: Readers' Digest.
CB1000R Import Two - Wheeler of the Year NDTV Profit Car & Bike Awards
2010.
Customers Satisfaction No.1 - CNBC TV18 - Auto Car "Auto Awards 2008.
Brand-Well Made Bike 2008 ,Advanced Technology 2008-Overall 2008,HondaEco-Friendliness 2008-Resale Value 2008 By Apollo Tyres - Auto India "Best
Brand Survey Awards 2008.
Enter no Best automobile brand of India 2007 (Plan man Media) Activa Best
automobile brand of India 2007 (Plan man Media)
Unicorn Motorcycle of the Year 2005 (B.S. Motoring & auto car)Unicorn TNS
Voice of the Customer Award (TNS)Enter no Scooters of the Year
2005 (B.S. Motoring & Overdrive)
Enter no Best Scootes of the Year 2014 (B S. Motoring & ICICI Bank,
Overdrive Magazine)
Racing.
Honda has always played an important role in motor sports, believing it to be
the springboard for technological
advancement. It has also been an aggressive force in the endurance,
motocross and trial races held around the world. We
at Honda, are not allowing this momentum to let up, as we pursue even
greater achievements. Honda has always loved racing, ever since Sochiro
Honda took his company into
motorcyclecompetition, sometime in the 1950s. Hondas engineers have test
ed themselves on theinternational stage,
proving their technology to be the best in the world. These technologies are
tested in the extreme conditions of
motorcycle racing, to adapt them for use in vehicles that ply on roads today.
In the past, Honda has powered some of the
all time great racers, including Redman, Hail wood, Spencer, Gardner,
Capirossi and Doohan, to 39 riders titles. Even today,
some of the greatest motorcycle racers, like Alex Baros, Max Biaggi, Nicky
Hayden ride on Honda bikes, at the races. Honda
enters the Isle of Man TT Races in 1959 Honda is an active participant in
many off-road races Michael Doohan riding Repsol
Honda's NSR 500.Technologies like these are not just for the race tracks, but
are also incorporated in our everyday
vehicles. They are first tested, refined and proven under the trying
conditions in the races, and then finally adapted in the
vehicles, so that two wheelers like Activa and Dio can utilise and benefit from
such technologies.
with sheer hard work of every staff member and above all out standing
customer support. Krishaa Honda captured 40% of
Shirur two and wheelers market successfully standing with the challenges
from competition. As of now Krishaa Honda
has a work force of 30 members, with an annual turnover of Rs.12
crores. They have also opened a separate service
station for better customer care.
FINANCE LEVEL:
The Krishaa Honda Provides sum finance facility to the customer The finance
facility Banks are
1.HDFC Financed.
2.Sriram Financed.
Fulletron The finance lever provides interest rate Rs. 1per 100. The customer
paid minimum 30% of theVehicle Amount. The
finance facility taken by the above 200 people of them.
SALES TEAM:
Sales Manager and four executives monthly they are sold 200 vehicle. They
provide 12% Interest rate. Incentive given
by company per vehicle 1000to 1500 Rupees of them. The demand is very
more for Honda Bikes there are 50% of Bikes
Purchase by spot cash 50%Vehicle side Finance Purchase. They are not
giving any offer to vehicle some times company
giving insurance offer. More sales for Activa, Shine, Unicorn, etc
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to
Customer.
ORGANISATION STRUCTURE
CHAPTER IV
INCOME NUMBER:
TOTAL of Respondents Below 50K * 51 K - 1 Lakh *
1 Lake - 2 Lakh *2 Lakes - 5 Lakhs *Above 5 Lakhs.
It is surprising to note that 95% of the bike owners are having annual income
less than 2 lakhs. In this 5% are having
income between 2 lakhs to 5lakhs. Though this looks un reliable, generally
respondents do not reveal their real
incomes. They have quoted their incomes as per the Ration Cards they
possess.
OCCUPATION:
Occupation Number of Respondents % * Students *
Employee * Business * Any other
80% of the bike owners are students and 17% are business people. Only 3%
are any other.
INFLUENCER:
Person Number of Respondents % * Self * Family members
* Friends * Any other
92% of the customers have decided to buy Honda Vehicle influenced by their
friends. 4% are influenced by their family
member While choosing Honda and a particular model, the customers are
influenced by the price of the bike. Limited importance is given to
Appearance of the vehicle.
LOYALTY TO DEALER:
* Yes * No
75%of the customers are satisfied with service of Krishaa Honda.
They also get Paid service from this dealers after free services.
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY:
Honda is a major player in Two wheeler market. In India almost every second
motor cycle sold is from Honda. It is has many
award to its credit How strong the brand may be, every organization has to
strive to improve customer satisfaction. With
increasing competition and customer expectations, Customer Satisfaction is
the key to success of any organization.
Dealers play a very important role in the marketing of any product. Their role
is vital mainly in the case of consumer
durables in general and automobiles in particular. Unlike majority
of consumer durables, automobiles need periodic
maintenance. Two wheelers have a peculiar feature as they are used by
common man who hardly has any knowledge of the
functioning or repairing of the vehicle, dealers role is very
important. Dealers can enhance or tarnish the image of the
company and the product how ever good it may be. The strength of Honda
motors is its channel partners, and service
availability every where.The findings of the study are summarized below:
Honda two wheeler customers are middle class and upper middle class.
customers for service and are not loyal to them for after free services are
over
SUGGESTIONS:
Regular availability of all models should be ensured. Efforts have to be taken
to ensure no stock outs for Activa, Unicorn
and Shine. Dealer has to put efforts to improve quality of after sales service
as majority opined that they would not prefer
the dealer after free services. Dealer and Company should ensure availability
of flagship brand Activa. Due to non
availability,majority of the prospective customers are shifting to other
company brands. Customers are suspecting the
CHAPTER-VI
QUSTIONNARIES
Name: Town/Village. Reg. No. Model Year of Manufacture:
1. Age ( Years):
A) 18-25 B) 35-45 C) 25-35 D) 45 Above
2. Qualification:
A) Under Graduate B) Graduate C) Post Graduated D) Any Other
4. Occupation:
A) Student B) Government Employee C) Private Employee D) Business E)
Any Other (Specify).
E)
Unicorn F)
Dazzler G) Hornet
E)
Any Other
C) Friends
D) Advertisement
C) Schemes
D) Finance availability
E)
Up.
C)
Non
serviced
A) Yes B) NO
CHAPTER-VII
BIBLIOGRAPHY
Philip Kotler Principals of Marketing ,Prention-Hall of India. Pvt .Ltd New
Delhi(1999).
Jagdish.N.Sheth Atul Parvatiyar
at
Relationship Marketing:
A division of stage publication New Delhi.(2000).
Philip Kotler
Marketing Management:
(In India, Bangladesh, Nepal).Pearl, Jack & Robyn.
Marketing Channels:
A Division of Holt, Rinehart & Weston(1978)
.V.V.RamaSwamy, S.Namakumari.
Marketing Management:
(Planning & Implementation &Control)
Rajiv Beri for Macmillan Indian Ltd .
New Delhi(2002).
www.Honda2wheelersIndia.com