1

A STUDY ON “EFFECTIVENESS
OF CUSTOMER DRIVEN MARKETING
STRATEGY”AT SUGUNA AUTOMOBILES
COIMBATORE-641 048.

SUMMER TRAINING REPORT

(AS PROJECT REPORT)

Submitted by

N.KARTHIK
Register No: 098001105015

In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

Dr. N.G.P. INSTITUTE OF TECHNOLOGY

COIMBATORE -641 048.
 2

Dr.N.G.P INSTITUTE OF TECHNOLOGY

COIMBATORE- 641 048

Department of Master of Business Administration

SUMMER TRAINING PROGRAM WORK

AUGUST 2010
This is to certify that the summer training program work entitled

A STUDY ON „EFFECTIVENESS OF CUSTOMER DRIVEN

MARKETING STRATEGY‟ AT SUGUNA AUTOMOBILES

is the bonafide record of project work done by

N.KARTHIK
Register No: 098001105015
of M.B.A during the year 2009-2010

………………….. ….………………….
Project Guide Head of the Department

Submitted for the summer training program Viva-Voce examination held on ………………

…………………… …………………….
Internal Examiner External Examiner
 3

DECLARATION

I affirm that the project work titled A STUDY ON „EFFECTIVENESS OF CUSTOMER

DRIVEN MARKETING STRATEGY‟ AT SUGUNA AUTOMOBILES being submitted in
partial fulfillment for the award of M.B.A is the original work carried out by me. It has not
formed the part of any other project work submitted for award of any degree or diploma either in
this or any other University.

KARTHIK.N
098001105015

I certify that the declaration made above by the candidate is true.

Signature of the Guide

 4

ACKNOWLEDGEMENT

I express my sincere thanks to the Principal Dr.S.Dhandapani, Dr.N.G.P

Institute of Technology and Dr.B.Subramani, Director and Head of the Department,
Management Studies, giving this opportunity to take up the project work.

I extend my hearty thanks to Ms.Susila, Managing Partner of Suguna

Automobiles, Coimbatore-18 for permitting to do the project work in their esteemed
concern.
I express my profound thanks to Mr.Kannan, from Sales Dept., and also
Mr.Jayaraj (HDFC staff) for providing me the information that are necessary for doing
the project work and without which completion of the project would have been
impossible.
I am highly indebted to my project guide Mrs.R.K.Sudhamathi, Faculty,
Dr.N.G.P Business School who guided me in every step of the project work.
I express my sincere thanks to all the respondents who gave their honest response.
I express my profound gratitude to my family members & friends for their help and
encouragement.
 5

TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

List of Tables viii

List of Charts ix
1 INTRODUCTION
1.1 About the study 1
1.2 Industry Profile 3
1.3 Dealer Profile 5
1.4 About Suguna Automobiles
1.4.1 Auto Finance 6
1.4.2 Auto Insurance 6
1.4.3 Spare parts 6
1.4.4 Exchange 6
1.4.5 Services 7
1.4.6 Awards 7
1.5 Objectives 8
1.6 Scope of the study 9
1.7 Limitations of the study 9
2 RESEARCH METHODOLOGY
2.1 Research Design 10
2.2 Sampling Design
2.2.1 Sampling Unit 10
2.2.2 Sample Size 11
2.2.3 Convenience Sampling 11
2.3 Type of Data & Data Collection methods 11
 6

CHAPTER NO. TITLE PAGE NO.

3 ANALYSIS AND INTERPRETATION

3.1 Analyzing the generalized details of respondents 12
3.2 Analyzing the demographic variables 15
3.3 Analyzing the factors that lead the customers to prefer 26
Suguna automobiles
3.4 Analyzing the marketing strategy practices 31
3.5 Analyzing the effectiveness of service 34
3.6 Analyzing the satisfaction level of customers towards the 39
finance offered in the company
3.7 Overall rating of Suguna automobiles by respondents 42
4 FINDINGS 43
CONCLUSION 45
QUESTIONNAIRE 46
REFERENCES 51
 7

ABSTRACT:

The study has been conducted in the area of Marketing for Suguna Automobiles,
Coimbatore-18. The company was started in the year 1979 in order to meet the demand
of the people in buying two-wheeler (Hero Honda). The research is conducted at the
Suguna Automobile showroom at Avinashi road, Cbe-18

The main objective of this project is to analyze the effectiveness of marketing

strategy practices followed at Suguna Automobiles.

The research design adopted for this study is Descriptive Research. Both primary
data and secondary data are used for the study. The primary data is collected through
Questionnaire. Secondary data are obtained from the company website, internet and at
workplace.

Analysis is done on various perspectives such as demographic analysis, Customer

preference towards the company. Simple Percentage analysis, Weighted Average
method, Chi-square test etc., are the methods used to derive the appropriate statistics on
opinion of the Customers.

The result of the study indicates that the marketing strategies adopted by Suguna
automobiles are Highly effective in attracting customers.
 8

LIST OF TABLES

TABLE NO. TITLE PAGE NO.

3.1.1.1 TWO-WHEELER OWNED BY THE RESPONDENTS AT PRESENT 12
3.1.2.1 MODE OF PURCHASE OF TWO-WHEELER BY THE RESPONDENTS 14
3.2.1.1 GENDER OF THE RESPONDENTS 15
3.2.2.1 AGE OF THE RESPONDENTS 16
3.2.3.1 INCOME OF THE RESPONDENTS 17
3.2.4.1 ASSOCIATION OF AGE WITH PREFERENCE TO TWO-WHEELER 18
ASSOCIATION OF AGE WITH PREFERENCE TO SUGUNA
3.2.5.1 20
AUTOMOBILES
3.2.6.1 ASSOCIATION OF INCOME WITH PREFERENCE TO TWOWHEELER 22
3.2.7.1 ASSOCIATION OF INCOME WITH MODE OF PURCHASE 24
3.3.1.1 PREFERENCE OF CUSTOMERS TOWARDS SUGUNA AUTOMOBILES 26
3.3.2.1 OPTING FOR SUGUNA AUTOMOBILES AGAIN 27
3.3.3.1 RECOMMENDING YOUR FRIEND TO BUY A PRODUCT FROM SUGUNA 28
3.3.4.1 REASONS FOR RECOMMENDING TO FRIEND BY RESPONDENTS 29
3.3.5.2 REASONS FOR NOT RECOMMENDING TO FRIEND BY RESPONDENTS 30
3.4.1.1 DURATION OF DELIVERY OF TWO-WHEELER 31
3.4.2.1 OPINION ON THE DOWNPAYMENT AMOUNT 32
3.5.1.1 SERVICING OF THE RESPONDENT’S TWO-WHEELER 34
OPINION ON SATISFACTION LEVEL OF FREE SERVICE BY THE
3.5.2.1 35
RESPONDENTS
OPINION ON SATISFACTION LEVEL OF PAID SERVICE BY THE
3.5.3.1 37
RESPONDENTS
3.6.1.1 TERMS & CONDITIONS OF FINANCE 39
3.6.1.2 OPINION ON LOAN INTEREST BY THE FINANCIERS 41
3.7.1.1 OVERALL RATING FOR SUGUNA AUTOMOBILES BY RESPONDENTS 42
 9

LIST OF CHARTS

CHART NO. DESCRIPTION PAGE NO.

3.1.1.2 TWO WHEELER OWNED BY THE RESPONDENTS AT PRESENT 13
3.1.2.2 MODE OF PURCHASE OF TWO-WHEELER BY THE RESPONDENTS 14
3.2.1.2 GENDER OF THE RESPONDENTS 15
3.2.2.2 AGE OF THE RESPONDENTS 16
3.2.3.2 INCOME OF THE RESPONDENTS 17
3.2.4.2 ASSOCIATION OF AGE WITH PREFERENCE TO TWO-WHEELER 19
3.2.5.2 ASSOCIATION OF AGE WITH PREFERENCE TO SUGUNA 21
AUTOMOBILES
3.2.6.2 ASSOCIATION OF INCOME WITH PREFERENCE TO 23
TWO-WHEELER
3.2.7.2 ASSOCIATION OF INCOME WITH MODE OF PURCHASE 25
3.3.1.2 PREFERENCE OF CUSTOMERS TOWARDS SUGUNA AUTOMOBILES 26
3.3.2.2 OPTING FOR SUGUNA AUTOMOBILES AGAIN 27
3.3.3.2 RECOMMENDING YOUR FRIEND TO BUY A PRODUCT FROM SUGUNA 28
3.3.4.2 REASONS FOR RECOMMENDING TO FRIEND BY RESPONDENTS 29
3.3.5.2 REASONS FOR NOT RECOMMENDING TO FRIEND BY RESPONDENTS 30
3.4.1.2 DURATION OF DELIVERY OF TWO-WHEELER 31
3.4.2.2 OPINION ON THE DOWNPAYMENT AMOUNT BY RESPONDENTS 32
3.5.1.2 SERVICING OF THE RESPONDENT’S TWO-WHEELER 34
3.5.2.2 OPINION ON SATISFACTION LEVEL OF FREE SERVICE BY THE 36
RESPONDENTS
3.5.3.2 OPINION ON SATISFACTION LEVEL OF PAID SERVICE BY THE 38
RESPONDENTS
3.6.1.2 TERMS & CONDITIONS OF FINANCE 40
3.6.2.2 OPINION ON LOAN INTEREST BY THE FINANCIERS 41
3.7.1.2 OVERALL RATING FOR SUGUNA AUTOMOBILES BY RESPONDENTS 42
 10

CHAPTER 1

INTRODUCTION
1.1 ABOUT THE STUDY:

„EFFECTIVENESS OF CUSTOMER DRIVEN MARKETING STRATEGY‟

Companies today recognize that they cannot appeal to all buyers in the market place or at least
not to all buyers in the same way. Buyers are too numerous, too widely scattered, and too varied
in their needs and buying practices. The companies themselves vary widely in their abilities to
serve different segments of the market. Hence, a company must design customer driven
marketing strategies that build the right relationships with right customers.
Four major steps in designing a customer driven marketing strategy,
1) Market Segmentation involves dividing a market into smaller groups of buyers with
distinct needs, behaviors who might require separate products or marketing mixes.
The various segments involve Geographic, Demographic, Psychographic, Behavioral
segmentations. Of these the researcher undertakes study only based on Demographic
Segments which involves Age, Gender and Income of the Respondents
2) Market Targeting, is evaluating each market segment’s attractiveness and selecting one
or more segments to enter.
The various Target market strategies involve Mass marketing, Differentiated marketing,
Niche marketing, Micro marketing. Of these, the strategy that is adopted by the company
is Differentiated marketing wherein it targets several market segments and designs
separate offers for each.
3) Differentiation involves differentiating the firm’s market offering to create superior
value to the customers.
4) Positioning involves arranging for a product to occupy a clear and desirable place
relative to competing products in the minds of target customers.
The full positioning of a company depends on the full mix of benefits upon which it is
positioned in the minds of customers.
Every company while deciding a positioning strategy it identifies the possible value
propositions.
 11

PRICE
More The same Less

More More for more More for the More for less
same

Same for more Same for same Same for less

The
same
Less for more Less for the Less for much
same less
Less
BENEFITS

Thus the companies to be successful in the globalised competitive scenario, should adopt one or
all of the above mentioned customer driven marketing strategy. Due to the above attached
importance, Iam focusing my study on “Effectiveness of customer driven marketing strategy” at
Suguna Automobiles.
 12

1.2 INDUSTRY PROFILE

 HISTORY OF TWO-WHEELER:
The Britannica Encyclopedia describes a motorcycle as a bicycle or a tricycle propelled
by an internal-combustion engine (or, less often, by an electric engine).

The motors on minibikes, scooters, and mopeds, or motorized velocipedes, are usually
air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the
multiple-cylinder motorcycles have displacements of more than 1,300 cubic cm.

The automobile was the reply to the 19th-century dream of self-propelling the horse-
drawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle. The
first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884.
This employed a horizontal single-cylinder gasoline engine mounted between two steer able
front wheels and connected by a drive chain to the rear wheel.

The 1900s saw the conversion of many bicycles, or pedal cycles by adding small,
centrally mounted spark ignition engines. There was then felt the need for reliable constructions.
This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races
were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving
ground for many new ideas from early two-stroke-cycle designs to supercharged, multivalve
engines mounted on aerodynamic, carbon-fibre reinforced bodywork.
 13

 HISTORY OF INDIAN TWO-WHEELER:

The Indian two wheeler market is the second largest manufacturer and producer of two-wheelers
in the world. It stands next to Japan and China in terms of the number of two-wheelers produced
and domestic sales respectively.

The Indian two-wheeler industry can be classified into three major segments namely-
Scooters, Motorcycles and Mopeds. The key players in the Indian two-wheeler markets are Tvs ,
Bajaj Auto and Hero Honda. Together they account for more than 75% of the industry.
Yamaha and Honda the two major foreign players entered with wholly owned companies.

The Indian motorcycle industry can be broadly categorized into Indian motorcycles and
Indo-Japanese motorcycles. Indo-Japanese motorcycles segment is dominated by Hero group and
Bajaj in collaboration with Japanese manufacturers like Honda and Yamaha respectively.
 14

1.3 ORGANIZATION/DEALER PROFILE

 Suguna Automobiles is an authorized and a leading Hero Honda dealer in India with
regard to Hero Honda motorcycles Sales, Spares and Service which started on 26th
December 1979. At present it has three showrooms attached with Automated Workshops
and fully equipped Spares centre. The company has 3 units at present, one in Avinashi
road, one in Mettupalayam road and the other unit is in Lakshmi mills, which is an
Exclusive showroom for women, which no other competitor did.
 The special features of the company include Credit for customers on Point basis, no
charge of money for extra fitting of Bikes, 5% discount on every purchase of a bike,
largest stockiest of all bikes and spares of Hero Honda.
 Two of the Automated Workshops is also open on Sundays for regular maintenance of
motorcycles. And it is being proud that they are the largest stockiest in Spare Parts and
Motorcycles in and around Coimbatore.
 Suguna Automobiles market products not only to customers but also to sub-dealers like
MRG Motors, Surya Motors, Viswam Automobiles, Ganapathy Autos etc.,
 The products are obtained from Gurgaon and Dharkara (Haryana). The products are
usually transported via road cargo, mostly Trucks are used, In rare occasions Trains are
used.
 The company has a head to head competition with that of GEM Motors.
 The competitive edge of Suguna Automobiles over the competitors lies in Customer
satisfaction and After sales service.
 15

1.4 ABOUT SUGUNA AUTOMOBILES

1.4.1 AUTO FINANCE:

 Professional sales staff at the company helps the customers in financing at competitive
rates. The financiers are ICICI Bank, Cholamandalam DBS, IndusInd Bank, HDFC Bank.
 These financiers offer low interest rate schemes and various other schemes to suit the
customer’s needs with minimum documentation work and a hassle free procedure, the
entire process is completed in less than 48 hours.

1.4.2 AUTO INSURANCE (Nsureplus):

The showroom has in-house insurance facility and renewals for all models on online.

1.4.3 SPAREPARTS:
At Suguna Automobiles, the customers are ensured to get Genuine Hero Honda parts that are
engineered to provide the quality and performance which is the hallmark of Hero Honda. They
provide the exact Hero Honda part the customers require or if help needed in finding which part
fits the needs, the customers can readily get unparalleled expertise, prompt and efficient service
from parts department staff at the company.

1.4.4 EXCHANGE:
The company has a separate exchange desk to assist the customers in getting the right advice and
guidance to sell their old two wheelers for a brand new Hero Honda product.
 16

1.4.5 SERVICES:
The services provided by Suguna Automobiles are Highly efficient and has a Competitive edge
over the competitors. The main specialty of the company is that 2 of the 3 units of Suguna
automobiles, the Service centers works on all Sundays.

 Fully automated service center with Pneumatic Guns

 Hydraulics lift
 Auto chain cleaner and lubricants
 Spark plug cleaner
 Automated tyre inflator
 Water wash with modicare products used.

1.4.6 AWARDS WON BY SUGUNA AUTOMOBILES:

1) “ROLL OF HONOUR” for our outstanding achievement in All India Dealer Contest
1987
2) “HERO HONDA BEST DEALER” in co memo ration of Holiday in Japan. (11th to
17th October 1987).
3) “CERTIFICATE OF EXCELLENCE” for our outstanding performance in All India
Dealer Contest 1989.
4) “OUTSTANDING DEALER” – Marketing Convention – 1991.
5) Certificate awarded as a winner for overall performance in the “HERO SAFARI”
Contest for the year 1999-2000.
6) “CERTIFICATE OF EXCELLENCE” awarded as a winner for overall
performance in the “HERO STARS” Contents for the year 2000-2001.
7) MEGA CAMP AND RIDE SAFE PROGRAMME in and around Coimbatore from
2005.
 17

1.5 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:
The primary objective of the study is to identify the factors that lead the Customers to prefer
Suguna Automobiles.

SECONDARY OBJECTIVE:
1) To study about the customer profile of Suguna Automobiles
2) To analyze about the Demographic Segments (Age, Income)
3) To study about the marketing strategy practices followed at Suguna Automobiles
4) To analyze the effectiveness of service provided by Suguna Automobiles
5) To analyze about the satisfaction level of customers regarding the finance provided by
the financiers in the company.
 18

1.6 SCOPE OF THE STUDY

1) Market can be divided into a variety of segments based on the needs and wants of the
customers.
2) Assessing the effectiveness of Strategies followed by the company in attracting
Customers

1.7 LIMITATIONS OF THE STUDY

1) The sample size is restricted to 58

2) The respondents were only Suguna automobile customer of VOC showroom,
geographic variations may be there.
3) Only a few set of questions asked via Questionnaire due to shortage of time.
4) The respondents are only Suguna customers.
5) Respondents bias
6) The study considers only Demographic Variables as a major concern.
 19

CHAPTER 2

RESEARCH METHODOLOGY

2.1 RESEARCH DESIGN

Descriptive Research Design
The research design adopted for this study is Descriptive design. This project is designed
to identify the factors which influence the customers and the ways through which they prefer to
buy a two-wheeler from Hero Honda dealer Suguna Automobiles, Coimbatore (VOC showroom)

Descriptive Study
The objective of a descriptive study is to learn the who, what, when, where and how of
the topic. The study may be simple or complex. The simplest descriptive study concerns a
univariate question or hypothesis.

Descriptive studies involve the collection of data and the creation of a distribution of the
number of times the researcher observes a single event or characteristics or they may involve
relating the interaction of two or more variables. Descriptive studies may or may not have the
potential for drawing powerful inferences. The descriptive study is popular in business research
because of its versatility across disciplines.

2.2 SAMPLING DESIGN

2.2.1 SAMPLING UNIT

The researcher chooses the target population for survey among the customers of Suguna
Automobiles who has already purchased bike from Suguna automobiles are considered for this
study.
 20

2.2.2 SAMPLE SIZE

58 respondents were selected from the population who has already purchased a bike from
Suguna which includes respondents bought bike by cash, loan basis; respondents came for free
servicing, paid servicing their bikes; Carried out on both male and female

2.2.3 CONVENIENCE SAMPLING

This sampling method involves purposive or deliberate selection of particular units of the
universe for constituting a sample which represents the universe. When population elements are
selected for inclusion in the sample based on the ease of access, it can be also called deliberate/
purposive/ non-probability sampling.

2.3 TYPES OF DATA AND DATA COLLECTION METHOD

The data collected in two ways:

a. Primary Data
b. Secondary Data

DATA COLLECTION METHOD

The data for the primary data is collected through questionnaire and data for the
secondary data is collected from the workplace, company website and internet.
 21

CHAPTER 3

ANALYSIS AND INTERPRETATION

3.1 In this section an attempt is made to analyze the generalized details of the respondents

TABLE 3.1.1.1
TABLE SHOWING TYPE OF THE TWO-WHEELER OWNED BY THE
RESPONDENTS AT PRESENT

TWO-WHEELER RESPONDENTS %
Splendor+ 34 58.62
CBZ Extreme 5 8.63
Glamour 2 3.45
Passion plus 13 22.41
Others 4 6.89
Total 58 100

From the table 3.1.1.1, it is inferred that most respondents (58% splendor+, 22% Passion plus)
prefer low cc bikes (mileage oriented).
 22

CHART 3.1.1.2
CHART SHOWING TYPE OF THE TWO-WHEELER OWNED BY THE
RESPONDENTS AT PRESENT

others

Passion plus

Glamour
%

CBZ Extreme

Splendor+

0 10 20 30 40 50 60 70
 23

TABLE 3.1.2.1
TABLE SHOWING THE MODE OF PURCHASE OF
TWO-WHEELER BY THE RESPONDENTS

Factors Respondents %
Cash 21 36.21
Loan basis 37 63.79
Total 58 100

From the table 3.1.2.1, it is clear that 63.79% of the respondents surveyed were opting the
two wheeler on loan basis and 36.21% were on cash basis.

CHART 3.1.2.2
CHART SHOWING MODE OF PURCHASE OF
TWO-WHEELER BY THE RESPONDENTS

cash
loan
 24

3.2 In this section an attempt is made to analyze the Demographic variables.

TABLE 3.2.1.1
TABLE SHOWING THE GENDER OF THE RESPONDENTS

Gender Respondents %
Male 57 98.275
Female 1 1.725
Total 58 100

From the table 3.2.1.1, it is inferred that 98.3% of the respondents are Male and 1.7% were
Female. This may be bias to the study, but the reason behind is that the company has an
exclusive showroom for women (Pleasure).

CHART 3.2.1.2
CHART SHOWING THE GENDER OF THE RESPONDENTS

male female
 25

TABLE 3.2.2.1
TABLE SHOWING THE AGE OF THE RESPONDENTS

Age Respondents %
18- 25 19 32.75
26- 40 22 37.93
41- 65 13 22.43
< 65 4 6.89
Total 58 100

From the table 3.2.2.1, the respondents (32.75%) are between the age group 18-25, 37.93% were
between 26-40, 22.43% were 41-65. This reveals that Suguna automobiles markets all sort of
bikes of Hero Honda and Segmenting the markets based on Age Groups also.

CHART 3.2.2.2
CHART SHOWING THE AGE OF THE RESPONDENTS

40

35

30

25

20
%
15

10

0
18-25 26-40 41-65 >65
 26

TABLE 3.2.3.1

TABLE SHOWING THE INCOME OF THE RESPONDENTS

Income Respondents %
< 10000 19 32.76
10000-20000 27 46.56
> 20000 12 20.68
Total 58 100

From the table 3.2.3.1, market segments are also spread on the basis of income groups also. It is
found that the respondents (32.76%) were with the income of <10000, 46.56% were between
10000- 20000, 20.68% were with the income of >20000.

CHART 3.2.3.2 INCOME OF THE RESPONDENTS

> 20000

%
10000-20000

< 10000

0 10 20 30 40 50
 27

TABLE 3.2.4.1
TABLE SHOWING THE ASSOCIATION OF AGE WITH PREFERENCE TO TWO-
WHEELER
Chi-square test
Vehicle Splendor+ CBZ Extreme Glamour Passion plus Others Total

Age Group
18 –25 3 4 - 4 2 13
26 – 40 14 1 1 7 1 24
41 – 65 17 - 1 2 1 21
> 65 - - - - - -
Total 34 5 2 13 4 58

Calculated chi-square value (O-E)2/E : 27.523

Degrees of Freedom (r-1)*(c-1) : 12
Table value of Chi-square at 5% level of significance : 21

Null Hypothesis (H0): There is no significant relationship between the

Age of the respondents and the Vehicle preferred.

Alternative Hypothesis (H1): There is a significant relationship between the

Age of the respondents and the Vehicle preferred.

Conclusion:
Since the Calculated Value is greater than the table Value, it infers that the
Null Hypothesis is Rejected & Alternative Hypothesis Accepted.
Therefore, there is a significant relationship between the Age of the respondents and the Vehicle
preferred.
 28

CHART 3.2.4.2
CHART SHOWING THE ASSOCIATION OF AGE WITH PREFERENCE TO
TWO-WHEELER

18

16

14

12

10

0
18-25 26-40 41-65 > 65
Splendor+ 3 14 17
CBZ Extreme 4 1
Glamour 1 1
Passion plus 4 7 2
Others 2 1 1
 29

TABLE 3.2.5.1
TABLE SHOWING THE ASSOCIATION OF AGE WITH PREFERENCE TO
SUGUNA AUTOMOBILES

Suguna Attractive Stock Influence of Others Total

Price Availability Friends & Relatives
Age Group
18 –25 3 5 15 5 28
26 – 40 8 2 7 1 18
41 – 65 6 3 2 1 12
> 65 - - - - -
Total 17 10 24 7 58

Calculated chi-square value (O-E)2/E : 17.872

Degrees of Freedom (r-1)*(c-1) : 9
Table value of Chi-square at 5% level of significance : 16.9

Null Hypothesis (H0): There is no significant relationship between the

Age of the respondents and their preference towards Suguna Automobiles.

Alternative Hypothesis (H1): There is a significant relationship between the

Age of the respondents and their preference towards Suguna Automobiles.

Conclusion:
Since the Calculated Value is greater than the table Value, it infers that the
Null Hypothesis is Rejected & Alternative Hypothesis Accepted.
Therefore, there is a significant relationship between the Age of the respondents and the
preference towards Suguna Automobiles.
 30

CHART 3.2.5.2
CHART SHOWING THE ASSOCIATION OF AGE WITH PREFERENCE TO
SUGUNA AUTOMOBILES

16

14

12

10

0
18-25 26-40 41-65 > 65
Atttractive Price 3 8 6
Stock Availability 5 2 3
Influence of friends & relatives 15 7 2
Others 5 1 1
 31

TABLE 3.2.6.1
TABLE SHOWING THE ASSOCIATION OF INCOME WITH PREFERENCE TO
TWO-WHEELER

Suguna Splendor+ CBZ Extreme Glamour Passion plus Others Total

Income
< 10000 19 - 1 5 2 27
10000-20000 12 2 1 6 1 22
> 20000 3 3 - 2 1 9
Total 34 5 2 13 4 58

Calculated chi-square value (O-E)2/E : 18.056

Degrees of Freedom (r-1)*(c-1) : 8
Table value of Chi-square at 5% level of significance : 15.5

Null Hypothesis (H0): There is no significant relationship between the

Income of the respondents and the Vehicle preferred.

Alternative Hypothesis (H1): There is a significant relationship between the

Income of the respondents and the Vehicle preferred.

Conclusion:
Since the Calculated Value is greater than the table Value, it infers that the
Null Hypothesis is Rejected & Alternative Hypothesis Accepted.
Therefore, there is a significant relationship between the Income of the respondents and the
Vehicle preferred.
 32

CHART 3.2.6.2
CHART SHOWING THE ASSOCIATION OF INCOME WITH PREFERENCE TO
TWO-WHEELER

20

18

16

14

12

10

0
< 10000 10000-20000 > 20000
Splendor+ 19 12 3
CBZ Extreme 2 3
Glamour 1 1
Passion plus 5 6 2
Others 2 1 1
 33

TABLE 3.2.7.1
TABLE SHOWING THE ASSOCIATION OF INCOME WITH MODE OF PURCHASE

Mode of Purchase Cash Loan basis Total

Income
< 10000 2 17 19
10000-20000 10 17 27
> 20000 9 3 12
Total 21 37 58

Calculated chi-square value (O-E)2/E : 13.475

Degrees of Freedom (r-1)*(c-1) : 2
Table value of Chi-square at 5% level of significance : 5.99

Null Hypothesis (H0): There is no significant relationship between the

Income of the respondents and the Mode of Purchase.

Alternative Hypothesis (H1): There is a significant relationship between the

Income of the respondents and the Mode of Purchase.

Conclusion:
Since the Calculated Value is greater than the table Value, it infers that the
Null Hypothesis is Rejected & Alternative Hypothesis Accepted.
Therefore, there is a significant relationship between the Income of the respondents and the
Mode of Purchase.
 34

CHART 3.2.7.2
CHART SHOWING THE ASSOCIATION OF INCOME WITH MODE OF PURCHASE

18

16

14

12

10
Cash
8 Loan
6

0
< 10000 10000-20000 > 20000
 35

3.3 In this section an attempt is made to analyze about the factors that lead the customers
to prefer Suguna automobiles
TABLE 3.3.1.1
TABLE SHOWING THE PREFERENCE OF CUSTOMERS TOWARDS SUGUNA
Factors Respondents %
Attractive price 17 29.31
Stock availability 10 17.25
Influence of 24 41.38
Friends/Relatives
Others 7 12.06
Total 58 100

From the table 3.3.1.1 Influence of friends & relatives is a great concern in buying a product
from Suguna automobiles.

CHART 3.3.1.2
CHART SHOWING THE PREFERENCE OF CUSTOMERS TOWARDS SUGUNA

OTHERS

FRNDS/RELATIVES

%
STOCK

PRICE

0 5 10 15 20 25 30 35 40 45
 36

TABLE 3.3.2.1
TABLE SHOWING WITH RESPECT TO RESPONDENTS OPTING FOR SUGUNA
AUTOMOBILES AGAIN

OPTING FOR SUGUNA RESPONDENTS %

Yes 50 86.20
No 0 0
Don’t know 6 10.35
Not willing to comment 2 3.45
Total 58 100

From the table 3.3.2.1, it is inferred that about 86% of the respondents like to opt for the
company again, this shows that the Customers are satisfied with most of the aspects of Suguna
Automobiles, which is the real success of a company.

CHART 3.3.2.2
CHART SHOWING WITH RESPECT TO RESPONDENTS OPTING FOR SUGUNA
AUTOMOBILES AGAIN

100
90
80
70
60
50
%
40
30
20
10
0
Yes No Don't know No comment
 37

TABLE 3.3.3.1
TABLE SHOWING WHETHER THE RESPONDENTS RECOMMEND
SUGUNA TO THEIR FRIEND

RECOMMENDING TO FRIEND RESPONDENTS %

Definitely Yes 42 72.42
Yes 12 20.69
No 4 6.89
Definitely No 0 0
Total 58 100

From the table 3.3.3.1, it is clear that most respondents (72.42%) were likely to recommend to
their friends to buy a product from Suguna Automobiles, this shows that the respondents are well
satisfied with the company in all aspects.

CHART 3.3.3.2
CHART SHOWING WHETHER THE RESPONDENTS RECOMMEND
SUGUNA TO THEIR FRIEND

80
70
60
50
40
%
30
20
10
0
Definitely Yes Yes No Definitely No
 38

TABLE 3.3.4.1
TABLE SHOWING THE REASONS WHY RESPONDENTS WILLING TO
RECOMMEND TO THEIR FRIENDS

REASONS RESPONDENTS %
Good Customer Relationship 19 35.19
Prompt Delivery of Vehicle 10 18.51
Good After Sales Service 10 18.51
Effective Servicing of the Vehicle 8 14.82
Availing finance is very easy 7 12.97
Total 54 100

From the table 3.3.4.1, it is clear that 35% of the respondents feel that they will recommend
Suguna to their friend because of Good Customer Relationship and other options are almost
equally scattered between the respondents.

CHART 3.3.4.2

CHART SHOWING THE REASONS WHY RESPONDENTS WILLING TO

RECOMMEND TO THEIR FRIENDS

40
35
30
25
20
15 %
10
5
0
Customer Prompt Good after Effective Easy avail of
relation delivery sales service vehicle finance
servicing
 39

TABLE 3.3.5.1
TABLE SHOWING THE REASONS FOR RESPONDENTS FOR NOT
RECOMMENDING TO FRIEND
REASONS RESPONDENTS %
Poor Customer Relationship 2 50
Delayed delivery of Vehicle 0 0
Poor After Sales Service 1 25
Ineffective Servicing of the Vehicle 1 25
Availing finance is Difficult 0 0
Total 4 100

From the above table, out of the total 58 respondents 4 of them have told that they won’t
recommend Suguna to their friends. 2 respondents feel that there is no Good Customer
Relationship and poor after sales service, Ineffective vehicle servicing felt by 1 respondent each.

CHART 3.3.5.2
CHART SHOWING THE REASONS FOR RESPONDENTS FOR NOT
RECOMMENDING TO FRIEND

Availing finance is difficult

Ineffective vehicle servicing

Poor after sales service

%

Delayed delivery

Poor customer relation

0 0.5 1 1.5 2 2.5

 40

3.4 In this section an attempt is made to analyze the marketing strategy practices followed
at Suguna automobiles
TABLE 3.4.1.1
TABLE SHOWING THE DURATION OF DELIVERY OF TWO-WHEELER

DURATION RESPONDENTS %
< 5 days 49 84.48
5-15 days 6 10.34
15-30 days 3 5.18
> 30 days 0 0
Total 58 100

From the table 3.4.1.1, the respondents (84.48%) were satisfied with the delivery of the vehicle,
which is obtained within 5days; this shows that the company has ready stock of all the products
of Hero Honda, which is a positive sign to the company and satisfies customers.

CHART 3.4.1.2
CHART SHOWING THE DURATION OF DELIVERY OF TWO-WHEELER

> 30days

15-30 days

%
5-15 days

< 5days

0 10 20 30 40 50 60 70 80 90
 41

TABLE 3.4.2.1
TABLE SHOWING THE OPINION ON THE DOWNPAYMENT AMOUNT

DOWNPAYMENT RESPONDENTS %
Low 48 82.75
High 3 5.18
Equal 7 12.07
Total 58 100

From the 3.4.2.1 table, it is inferred that the respondents (82.75%) say that the Down payment
amount is Low, which shows that the company highly considers Customer Expectations and
Satisfaction.

CHART 3.4.2.2
CHART SHOWING THE OPINION ON THE DOWNPAYMENT AMOUNT

90

80

70

60

50

40 %

30

20

10

0
low high equal
 42

3.4.3 Some of the strategies followed by the company are Quick delivery of the vehicle to
customers, Low down payment amount and Vehicle service in Sundays also.
Since the strategies adopted by any company are meant to be secretive in their own concern, the
strategies mentioned above by the researcher are only his knowledge meant with the details
obtained from the survey with customers.
Also, framing of a strategy could be exactly correct only when a product is newly developed and
going to be introduced & marketed. Hence as such we cannot frame a strategy, one can just
conclude whether the strategies adopted are effective or not.
Therefore, the steps in designing customer driven strategies contrasting with the company with
regard to the study of the researcher are:
 Market Segmentation: Demographic Segments (Age, Gender, Income)
 Market Targeting: The study identifies what sort of marketing that the company follows
(Differentiated/ Undifferentiated)
 Differentiation: The Company creates separate value to customers in each market
segments.
 Positioning: The customers have a very good opinion on the part of company which
shows that the company has obtained a high market position in and around Coimbatore.

The study shows that (in Section2: Analysis & Interpretation) the preference of two-wheeler,
preferring Suguna Automobiles & the mode of purchase differ from Age groups & Income
groups. The customers are well satisfied with the company which is reflected in the workings in
each & every analysis sections of the study.
 43

3.5 In this section an attempt is made to analyze the effectiveness of service provided by
Suguna automobiles

TABLE 3.5.1.1
TABLE SHOWING THE SERVICING OF THE RESPONDENT‟S TWO-WHEELER

Service Respondents %
Free service 35 60.34
Paid service 23 39.66
Total 58 100

From the table 3.5.1.1, it is found that the 60.34% of the respondents were free service customers
and 39.66% of the respondents were Paid service customers.

CHART 3.5.1.2
CHART SHOWING THE SERVICING OF THE RESPONDENT‟S TWO-WHEELER

free
paid
 44

TABLE 3.5.2.1
TABLE SHOWING THE OPINION ON SATISFACTION LEVEL OF FREE SERVICE
BY THE RESPONDENTS

Weighted Average method: RESPONDENTS

FACTORS VEHICLE COMPLAINTS VEHICLE
DELIVERY FULFILLED SAFETY
Highly Satisfied (5) 12 18 34
Satisfied (4) 39 21 16
Neither Satisfied nor Dissatisfied (3) 5 14 7
Dissatisfied (2) 2 4 1
Highly Dissatisfied (1) 0 1 0
Total 58 58 58

From the table 3.5.2.1, it is clear that

1) Vehicle delivery
Most of the respondents (39) were satisfied, strangely none of them are highly
dissatisfied, 12 were highly satisfied & 2 were not satisfied, 5 of them were not sure
about it. On calculation the Weighted average score is found to be 4.05, which lies in
between Highly Satisfied & Satisfied.

2) Fulfillment of the Complaints

21 respondents were satisfied that the company fulfills their complaints made while
giving the vehicle for servicing, 18 were highly satisfied, 4 were dissatisfied, 1 were
highly dissatisfied and 14 were not sure. On calculation, the Weighted Average score is
found to be 3.87, which lies between Satisfied & Neither satisfied nor dissatisfied.
 45

3) Maintaining the Safety of Vehicle

34 respondents were highly satisfied, 16 were satisfied, 7 were not sure, 1 was
dissatisfied and none was highly dissatisfied. On calculation the Weighted Average score
is found to be 4.43 which is a very good score on the part of the company which lies
between Highly Satisfied & Satisfied.

CHART 3.5.2.2
CHART SHOWING THE OPINION ON SATISFACTION LEVEL OF FREE SERVICE
BY THE RESPONDENTS

45

40

35

30

25
Vehicle Delivery
20
Complaints Fulfilled
15 Vehicle Safety

10

0
Highly Satisfied Neither Dissatisfied Highly
satisfied satisfied nor Dissatisfied
Dissatisfied
 46

TABLE 3.5.3.1
TABLE SHOWING THE OPINION ON SATISFACTION LEVEL OF PAID SERVICE
BY THE RESPONDENTS

RESPONDENTS
FACTORS VEHICLE COMPLAINTS VEHICLE
DELIVERY FULFILLED SAFETY
Highly Satisfied (5) 33 42 38
Satisfied (4) 19 11 11
Neither Satisfied nor Dissatisfied (3) 4 5 9
Dissatisfied (2) 2 0 0
Highly Dissatisfied (1) 0 0 0
Total 58 58 58

From the table 3.5.3.1, it is clear that

1) Vehicle Delivery
33 respondents were highly satisfied with that of delivery of the vehicle at the promised
time, 19 were satisfied, 4 were not sure and 2 were dissatisfied, none were highly
dissatisfied. On calculation, the Weighted Average score is found to be 4.43 which lie
between Highly Satisfied & Satisfied.

2) Fulfillment of the Complaints

42 respondents were highly satisfied in terms of the fulfilling the complaints while the
vehicle is given for servicing, 11 respondents were satisfied and 5 were not sure about it.
On calculation, the Weighted Average score is found to be 4.64 which infer that the
fulfillment of complaints is almost Highly Satisfied.
 47

3) Maintaining the Safety of Vehicle

38 respondents were highly satisfied with the maintenance of the vehicle in the company
when given for servicing, 11 were satisfied and 9 were not sure about it. On calculation,
the Weighted Average score is found to be 4.5 which infer that the scores lie between
Highly Satisfied & Satisfied.

CHART 3.5.3.2
CHART SHOWING THE OPINION ON SATISFACTION LEVEL OF PAID SERVICE

120

100

80

60 Vehicle Safety
Complaints Fulfilled
Vehicle Delivery
40

20

0
Highly Satisfied Neither Dissatisfied Highly
satisfied satisfied nor dissatisfied
dissatisfied
 48

3.6 In this section an attempt is made to analyze about the satisfaction level of customers
regarding the finance provided by the financiers

TABLE 3.6.1.1
TABLE SHOWING THE FEELING OF RESPONDENTS REGARDING THE TERMS &
CONDITIONS OF FINANCE.

FACTORS RESPONDENTS RANKING

Highly Satisfied (5) 31 1
Satisfied (4) 13 2
Neither Satisfied nor Dissatisfied (3) 10 3
Dissatisfied (2) 3 4
Highly Dissatisfied (1) 1 5
Total 58

From the table 3.6.1.1, it is clear that most respondents are Highly Satisfied.
On calculation, it is found that the Weighted Average score is 4.20, which lie between Highly
satisfied and Satisfied. Thus infers that the terms and conditions of finance are good in the
company.
 49

CHART 3.6.1.2
CHART SHOWING THE FEELING OF RESPONDENTS REGARDING THE TERMS &
CONDITIONS OF FINANCE

35

30

25

20

15
respondents
10

0
Highly satisfied neither dissatisfied Highly
satisfied satisfied nor dissatisfied
dissatisfied
 50

TABLE 3.6.2.1
TABLE SHOWING THE RESPONDENT‟S OPINION ON LOAN INTEREST BY THE
FINANCIERS

INTEREST RATES RESPONDENTS %

Lower than others 47 81.04
Higher than others 2 3.45
Equal 9 15.51
Total 58 100

From the table 3.6.2.1, it is clear that 81% of the respondents feel that the Interest rates offered in
the company is lower than others and 15.5% feel that it is equal to others.

CHART 3.6.2.2
CHART SHOWING THE RESPONDENT‟S OPINION ON LOAN INTEREST BY THE
FINANCIERS

90

80

70

60

50

40 %

30

20

10

0
LOWER HIGHER EQUAL
 51

3.7 In this section an attempt is made to obtain overall rating of Suguna automobiles from
the respondents.
TABLE 3.7.1.1
TABLE SHOWING THE OVERALL RATING FOR SUGUNA AUTOMOBILES GIVEN
BY RESPONDENTS

FACTORS RESPONDENTS RANKING

Highly Satisfied (5) 28 1
Satisfied (4) 15 2
Neither Satisfied nor Dissatisfied (3) 9 3
Dissatisfied (2) 4 4
Highly Dissatisfied (1) 2 5
Total 58

From the table 3.7.1.1, 28 respondents gave highest rates, 15 were satisfied. On calculation, the
Weighted Average score is found to be 4.09, which lie between Highly Satisfied & Satisfied.

CHART 3.7.1.2
CHART SHOWING THE OVERALL RATING FOR SUGUNA AUTOMOBILES GIVEN
BY SUGUNA AUTOMOBILES

30

25

20

15

10

0
Highly satisfied Satisfied Neither satisfied Dissatisfied Highly dissatisfied
nor dissatisfied
 52

CHAPTER 4

FINDINGS

1) About 80% of the respondents are mileage oriented (low cc bikes) & 63% has bought
two-wheeler on loan basis.

2) 98% of the respondents are male, 46% were between the 10000-20000 income groups. It
is been found that age & income influences the respondents with regard to prefer two-
wheeler, prefer Suguna, mode of purchase.

3) 41% of the respondents are concerned with the Influence of friends/relatives while
preferring Suguna automobiles and followed by Attractive price(29%) offered by the
company.

4) 84% of the respondents are satisfied with the company in delivering the vehicle very
soon. The respondents (82%) feel that the down payment amount in the company is Low.

5) With respect to Free & Paid service provided by the company. The respondents are
nearly Highly satisfied with Vehicle Delivery, Fulfillment of Complaints, Maintaining
the Safety of the vehicle, but a little variations in Free service respondents show that the
Fulfillment of Complaints is low when compared to Paid service.

6) 86% say that they will opt for Suguna automobiles again and also they will surely
recommend to their friends (72%), the reasons behind is that Good customer relationship
(35%), followed by Prompt delivery of vehicle (19%) and Good after sales service
(19%). Only 4 respondents feel that won’t recommend to their friends because of poor
customer relation, poor after sales service and ineffective servicing of vehicle.
 53

7) The respondent’s Weighted average score (4.20) with regard to terms & conditions of
finance offerings in the company shows , the scores lie between Satisfied & Highly
Satisfied; Also, the respondents (81%) feel that the interest rates provided by the
financiers is Low.

8) 28 respondents are Highly Satisfied with respect to the Overall Rating for Suguna
automobiles, the weighted average score (4.09) lie between the margin Satisfied &
Highly Satisfied.
 54

CONCLUSION

The study revealed that the Marketing strategies followed by the company are right and
Highly Effective in attracting Customers. Few factors worth mentioning in attracting customers
are good customer relationship, low down payment amount, automated workshops, attractive
price, quick vehicle delivery and low interest rates.

A little variation regarding Free (3.87) & Paid service (4.64) has seen from the study that
the fulfillment of complaints mentioned for the vehicle while given for Servicing is more
effective in Paid service than comparing to Free service, although both the Weighted Average
scores show that the customers are almost satisfied & highly satisfied.

The study could be more effective if other market segments are taken into consideration,
increased sample size, undertaking study in other two showrooms of the company.
 55

QUESTIONNAIRE

A STUDY ON “EFFECTIVENESS OF CUSTOMER DRIVEN MARKETING

STRATEGY” AT SUGUNA AUTOMOBILES

1) Gender of the respondents

a) Male b) Female

2) Age of the respondents

a) 18-25 b) 26-40 c) 41-65 d) 65 and above

3) Educational Qualification
a) Up to School Level b) Graduate c) Professional Course

4) Income
a) < 10000 b) 10000- 20000 c) > 20000

5) Occupation
a) Business b) Profession
c) Government employee d) Others

6) What are all the features you would look for before buying a two wheeler?
a) Price b) Quality c) Free service
d) Warranty e) others… (Specify)

7) What model of Hero Honda bike do you have at present?

a) Splendor+ b) CBZ Extreme c) Glamour
d) Passion plus e) Others (Specify)
 56

8) What is the mode of purchase?

a) Cash b) Loan (Banks, Brokers)

9) How many days did the dealer took to deliver the bike to you?
a) <5 days b) 5- 15 days
c) 15- 30 days d) More than 30 days

10) Does the dealer support in all Formalities & Documentation procedures with regard
to RTO by themselves?
a) Yes b) No

11) How you came to know of Suguna automobiles?

a) Through friends / relatives
b) Through TV advertisements
c) Through paper advertisements
d) Through mail/web.

12) Why did you prefer Suguna Automobiles?

a) Attractive price b) Stock availability
c) Influence of Friends/Relatives d) Others.. (Specify)

13) What do you feel about the terms & conditions of Finance offered by the dealer?
Highly Satisfied Satisfied Neither Satisfied Dissatisfied Highly
nor Dissatisfied Dissatisfied
 57

14) Does the dealer offer finance in an easy & quick manner?
a) Yes b) No c) Either Yes or No

15) What is your opinion on loan interest rates provided by the financiers?
a) Lower b) Higher c) Equal

16) What is your opinion on the price offered by Suguna automobiles compared to other
Coimbatore based Hero Honda dealers?
a) Lower than other dealers b) Higher than other dealers
c) On par with other dealers

17) What is your opinion on the Satisfaction level of the free service offered by the
company on the following aspects?

FACTORS HIGHLY SATISFIED NEITHER DISSATISFIED HIGHLY

SATISFIED SATISFIED NOR DISSATISFIED
DISSATISFIED
Delivery of the
vehicle at the
promised time

Complaints
fulfilled

Safety of the bike

maintained
 58

18) What is your opinion on the Satisfaction level of the paid service offered by the
company on the following aspects?

FACTORS HIGHLY SATISFIED NEITHER DISSATISFIED HIGHLY

SATISFIED SATISFIED NOR DISSATISFIED
DISSATISFIED
Delivery of the
vehicle at the
promised time

Complaints
fulfilled

Safety of the bike

maintained

19) What is your opinion on the Down payment amount of Suguna Automobiles when
compared to others?
a) Low b) high c) equal

20) Will you opt for Suguna Automobiles again if you decide to buy another vehicle?
a) Yes b) No
c) Don't know d) not willing to comment

21) Will you recommend to your friend to buy a product from Suguna Automobiles?
a) Definitely yes b) Yes
c) No d) Definitely no
 59

22) If yes or definitely Yes what are the reasons for the same?
a) Good customer relationship
b) Prompt delivery of vehicle
c) Good after sale service
d) Servicing of the vehicle is very effective
e) Availing finance is very easy

23) If no or definitely no what are the reasons for the same?

a) Customer relationship is not maintained
b) Delay in delivery of vehicle
c) Poor after sale service
d) Servicing of vehicle is very bad
e) Financing procedures are difficult

24) How much will you rate Suguna Automobiles?

1 2 3 4 5

5- Excellent
4- Very Good
3- Good
2- Average
1- Poor

25) Any other general opinion about Suguna Automobiles….

 60

REFERENCES

1) Philip Kotler and Gary Armstrong „Principles of Marketing‟, 12th edition

(2008), pp. 182-212.
2) Jack Trout, “Branding Can‟t Exist without Positioning”, Advertising Age,
March 14, 2005, pp 28.
3) Don Peppers and Martha Rogers, “Managing Customer Relationships”:
A Strategic Framework (2004), chapter 10.
4) Darell K. Rigby and Vijay Vishwanath, “Localization: The Revolution in Consumer
Markets”, April 2006, pp. 82-92.

WEBSITES:

www.sugunaautomobiles.com
www.herohonda.com
http://en.wikipedia/wiki/org/customer driven marketing strategy.html