customer sat report

8/3/2019 Customer Sat Report

1/22

EXECUTIVE SUMMARY

A study on customer satisfaction level towards the product and service provided by RAM

HYUNDAI PVT LTD,CHENNAI. The need for this study emerged to find out the reason

for the sales which was gradually falling from the start of 2011. The idea of the case study is

to learn whether the customers were treated well,whether customers problem are solved with

utmost care and how relationship is been maintained between the dealer and their Customers.

A market survey was conducted among 100 customers of RAM Hyundai at Chennai.The

data were collected from varied categories of respondents.It was found that most of the

customers are giving more importance to different characteristics of the product and service

while purchasing and high expectation and rating for essential service from RAM Hyundai.

RAM Hyundai should make necessary changes in services offered according to the customer

expectation and satisfaction in order to retain the existing customers for servicing and to

generate new customers for years. Employees of RAM Hyundai should be trained in

customer service so that they can provide professionalized service to the customers.

INTRODUCTION

1


2/22

As organizations become increasingly customer focused and driven by demand, the need to

gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most

effective way to achieve customer loyalty. Customer satisfaction and customer loyalty share

many similar traits. Customer value is the customers perception of the ratio of benefits to

what he or she gives to obtain those benefits.

Increasing competition, ever growing market, easy availability of the finances and increasing

population of young executives, with huge disposable incomes over the past few years has

substantially increased the sales in the automobile industry. Also, the competition among the

dealers of the products has increased with each trying to maximize their customer base. This

makes the dealers to provide the best of the services and exceed the customer expectations to

achieve customer delight and loyalty.

The study tries to understand the key service parameters and providing the dealer with an

insight into the level of customer satisfaction and changing trends of the customer

expectations.

BACKGROUND OF THE COMPANY

Hyundai a name to be reckoned in the World Automobile industry is Koreas number one

automaker. Hyundai has established an enviable record for growth both in quantitative and

qualitative terms transforming itself from a domestically oriented manufacture into a global

player and leading contributor to Koreas economic and industrial development. Hyundai

Motor Company is steadily accelerating to achieve the status of world-class automobile

company.

In December 1967, Hyundai Motor Company (HMC) was born out of the Hyundai Business

group, the nations largest conglomerate with the purpose of entering the automobile industry

2


3/22

to meet the growing domestic demand for cars. Since then, HMC has played a major role in

providing transportation to further Koreas economics growth and prosperity.

Entry of Hyundai Motor Company in the Indian Market

Hyundai established its presence in India by opening a subsidiary called Hyundai Motor

India Limited with a total investment of US$ 614 Millions. The Hyundai project is the

largest to be made by an MNC in the automobile sector. The plant near Chennai, in the state

of Tamil Nadu is the largest manufacturing plant of Hyundai motors outside Korea and

contains nearly all facilities necessary for a self sufficient manufacturing and production site

for developing cars. As such, the India plant represents a family-type combined automobile

assembly facility, capable of all production processes, research and development, testing of

products, marketing for sales and provision of after sale service in India.

Ideology and Environment at Hyundai:

A management motto at Hyundai is Customer first, best in technology, best in quality and

best value for human beings. Hyundai as a company is dedicated to create new value for its

customers. Hyundai Motor Companys target is to care for the environment and devote

attention to the future of our children and their ability to inhabit a clean, pollution managed

world.

Goal of Hyundai To build the worlds best quality cars

Mission:

We at RAM Hyundai are continuously striving to be in tune with technology, provide

3


4/22

products and services of the highest quality, meet the performance and price aspirations of

our customers and while doing so, maintain the highest standard of ethics and social

responsibilities.

Constantly look to improve the quality of our services and process and look for constant

development with a focus towards customer delight.

Product profile of RAM Hyundai:

1. Santro

2. Accent

3. i10

4. i20

5. Verna

6. Sonata

7. Sante Fe

Sales: Overall 1500 Vehicles sold out last year and at an average of 130 to 140 Vehicles

sold out monthly.

Competitors: The number of competition dealer in Chennai for Hyundai motors are

1. Hmp Hyundai

2. Kun Hyundai

3. Dsc Hyundai

4


5/22

4. Express Hyundai

Key issues of the Organization:

Sales of Hyundai cars are gradually falling from the start of 2011.The dealer

wanted to know whether customer satisfication is the reason for the same.The study was

taken up to find out customer satisfication with respect to service offered by RAM

Hyundai.

ANALYZING THE COMPETITIVE ENVIRONMENT

General environment:

PESTEL analysis of Automobile Industry:

Political Factors:

In 2002, the Indian Government formulated an auto policy that aimed at promoting

integrated, phased, enduring and self-sustained growth of the Indian automobile

industry.Formulation of an appropriate auto fuel policy to ensure availability of adequate

amount of appropriate fuel to meet emission norms. And allowing automatic approval

for foreign equity investment up to 100% with no minimum investment criteria.Plan to

have a terminal life policy for Commercial vehicles along with incentives for replacement

for such vehicles. Promoting multi-model transportation and the implementation of mass

rapid transport system.

Economic Factors:

Government has granted concessions,such as reducing interest rates for export

financing .Indias GDP is growing at average rate of 8.5% every year and is counted as

5


6/22

one of the best among the emerging economies.The manufacturing sector of Automobile

has grown in excess of 13 per cent over the last few years and Finance availability to

Commercial vehicle buyers has grown in scope during last few years.Establishment of

India as manufacturing hub, for many compact cars, Original Equipments Manufactures

and for auto components and several Indian firms have partne red with global

players.

Social Factors:

The average family size is 4 which makes it favourable to buy a 4 wheeler.Car priced

below 6 lakhs accounts for nearly 80% of the market and Vehicles priced between 3.5

lakhs-6 lakhs for the largest passenger segment in the car market.Preference for small and

compact cars are socially acceptable even among the urban people.Due to changed

lifestyle of people, leads to increased purchase of automobiles, so automobile sector

have a large customer base to serve.

Technological Factors:

The Government of India is promoting National Automotive Testing and R&D

infrastructure project (NATRIP) to support the growth of auto industry in

India.Technological solutions helps in integrating the supply chain, hence reduce losses

and increase profitability.Internet makes it easy to collect and analyse customer

feedback.With the entry of global companies into the Indian market, advanced

techno log ies ,both in product and production process have developed. And majo r

global players l ike Audi, BMW, Hyundai etc have setup their manufacturing

units in India.

6


7/22

Environmental Factors:

In India,the pollution control norms applicable to the automobile sector have been aligned

with International trends.Euro II norms for emission levels have been implemented all

over the country.Judiciary in India has been active in enforcing anti-pollution

norms.Meeting the emission norms has been made mandatory for all the new vehicles

introduced in India and the auto industry has adjusted to environmental concerns.

Legal Factors:

The legal system of India is mainly characterised by liberalised foreign investment and

trade policy.There is a legal provision relating to environmental pollution by automobiles

and legal provision relating to safety measures for using a product and services that are

hazardous to life and property.

Business environment:

Porters five forces model of Hyundai motors:

7


8/22

Organizational structure:

8

THREAT OF NEWENTRANTS

New entrants inAutomobile sectors fromChina and Japan.

New Luxury models fromother AutomobileManufacturers.

RIVALRY AMONG THECOMPETITORS

Huge price competitionleading to extensive need todifferentiate their brands.

Rivalry among introducing thenew and best technology.

BARGAININGPOWER OF

BUYERS

Bargaining power of buyers is high.

Buyer may shift tosome other manufacturer if he isnot satisfied with the

price.

BARGAININGPOWER OFSUPPLIERS

OEM of Hyundai carsare supplied bysuppliers companiesmay bargain for a high

price.

Bargaining power of suppliers is low and themanufacturer may shiftto some other

THREAT OFSUBSTITUTES

Public Transportation withmore comfort andfrequency.

Motorcycles.


9/22

Chief Executive Officer

9

MANAGINGDIRECTOR

CHIEF EXECUTIVE OFFICER

SENIOR SALES MANAGER

DEPUTYSALESMANAGER

ASST.SALESMANAGER

4hjgfhj

TTTT20-SALESEXECUTIVES

4 -TEAM LEADERS

20- SALESEXECUTIVES


10/22

SWOT Analysis of RAM Hyundai:

10

STRENGTH:

Marketing expertise in Twowheeler retail segments atChennai

Showroom is situated inprime location of Chennai

where target groupcustomers like businesspeople,IT people etc aremore.

WEAKNESS:

Lack of sufficientknowledgable sales person.

Lack of awareness due toless promotional activities.

Low customer retention.

OPPORTUNITES:

Expanding to newgeographic areas inChennai.

Sell to existing corporatecustomers in and

around..

THREATS:

Changing customer tastes.

Competition through otherHyundai dealers in Chennai.


11/22

Testing of Hypothesis:

A market survey with a validated tool was conducted among 100 customers of

RAM Hyundai at Chennai.After applying descriptive statistics it was inferred that,

1) From Exhibit -2, it is evident that the Characteristics which are important for

purchasing the product/service is higher than other factors.

2) From Exhibit -1, it is evident that the respondents are highly satisfied with theCharacteristics of product/service.

3) From Exhibit-3, it is evident that the rating of essential services of Hyundai ishigh.

4) From Exhibit-4, it is evident that the respondents are not fully satisfied abouttheir recent experience with the product/service.

5) From Exhibit-5, it is evident that the respondents are not fully satisfied about

their overall satisfication with the product/service.

Alternative Strategies:

1) RAM Hyundai should involve more promotional activities by providing special

offers.

2) RAM Hyundai should concentrate on online customer care service to provide

proper services on time.

Recommendation:

1) Employees of RAM Hyundai should be trained more in order to provide

professionalized service to the customers which increases competitiveness of

RAM Hyundai.

2) RAM Hyundai should concentrate on middle class people in order to increase its

sales to provide service at a competitive price.

11


12/22

BIBLIOGRAPHY

Philip Kotler,Marketing Management,Pearson 13th Edition;

Page no:78

Donald R.Cooper,Business Research Methods,TataMc Graw Hill 2003 Edition ;Page no:55

www.blackwellpublishing.com

www.ibef.org

www.hyundai.com/in

www.mangaementparadise.com

12


13/22

APPENDICES:

I.How satisfied are you with the following characteristics of our product/service?

EXHIBIT NO:1

13

Variables Mean Median Skewness

Quality of the product/services

4.56 5.00 -1.219

Price of the product/services 4.44 4.00 -.414

Purchase experience 4.10 4.00 -.075

First purchase experience 4.28 4.00 -.420Usage experience 4.38 4.50 -.672

Fuel consumption 4.53 5.00 -.994

Looks and Design 4.71 5.00 -1.587

After purchase service 3.33 4.00 -.242

Customer servicerepresentative are friendly

3.70 4.00 -.362

Technical staff are friendly 3.40 4.00 -.153

Problem solving skills of technical staff 3.56 4.00 -.293

Total 4.09


14/22

II .How important are the following characteristics when purchasing this type of product/service?

EXHIBIT NO:2


Quality 4.64 5.00 -.592

Price 4.52 5.00 -.610

First use experience 4.31 4.00 -.471

Usage experience 4.31 4.00 -.354

Fuel consumption 4.52 5.00 -.891

Maintenance 4.68 5.00 -1.044

Looks and Design 4.61 5.00 -1.012

After purchase service 4.32 4.00 -.383

Repeat seviceexperience

4.21 4.00 -.316

Purchase experience 4.20 4.00 -.798

Total 4.43

.

14


15/22

III .How would you rate Hyundai on following parameters?

EXHIBIT NO:3

15


Knowledgeable sales person 2.91 3.00 .179

Sales person spend enoughtime before purchase 3.79 4.00 -.411Sales person spend enoughtime after purchase

3.12 3.00 .533

Display of merchandize is pleasing

3.43 3.50 -.112

Availability of variants 4.16 4.00 -.685

Attractive discounts 3.57 4.00 -.457

Decor of the waiting area is

pleasant3.36 3.00 -.015

Offered Test Drive 4.32 4.00 -1.016

Responds to complaintsquickly

3.42 4.00 -.278

Exellent service stationfacilities

3.30 3.00 .193

Total 3.53


16/22

IV. Thinking of your most recent experience with our product/service, howmuch do you agree with the following statements?

EXHIBIT NO:4

V. Overall, how satisfied were you with our product/service ?

EXHIBIT NO:5

16


Value for money 4.41 5.00 -1.128

All commitments are fulfilled 3.85 4.00 -.485Product/service offered arethose what I need

3.43 4.00 -.124

Product/services is easy to use 4.12 4.00 -.929

Product/services iscompetitively pricedTotal

3.73

3.90

4.00 -.458


Overall satisfication withOur product/services

3.70 4.00 -.558


17/22

VI. Thinking of similar products/services offered by other companies, howwould you compare our product/service offered to them?

EXHIBIT NO:6

VII. Would you recommend our product/service to colleagues or contactswithin your industry?

EXHIBIT NO:7

QUESTIONNAIRE ON CUSTOMER SATISFACTION SURVEY HYUNDAI MOTORS

Dear Sir/ Madam,

I am S.VIGNESH , a MBA student of ..University. I have taken up a projectwork in your esteem organization as a part of MBA curriculum. The topic onwhich I am working is CUSTOMER SATISFACTION SURVEY HYUNDAI MOTORS ,Chennai.

17


Compare Our product/services with other companies

4.12 4.00 -.200


Recommend Our Product/services to others

3.17 3.00 -.299


18/22

Please take a few minutes to complete this survey. Your specific answers will becompletely anonymous, but your views, in combination with those of others, areextremely important for analysis. The information is exclusively for academicpurpose which will help me to understand What are stress factor in anorganization & how the employees are managing?

Thank You.

I. How satisfied are you with the following characteristics of ourproduct/service?

5 - Verysatisfie

d

4 -Somewhat satisfied

3 -Neithersatisfied

nordissatisfie

d

2 -Somewhat

dissatisfied

1 - Verydissatisfie

d

Quality of the product /services

Price of the product /services

Purchase experience

First use experience

Usage experience

Fuel Consumption

Looks and Design

After purchase service(customer service, etc.)

Customer servicerepresentative are friendly

Technical staff are friendly

18


19/22

Problem solving skills of technical staff

II. How important are the following characteristics when purchasing this typeof product/service?

5 -Extremely

important

4 - Veryimportant

3 -Somewhat

important

2 - Not veryimportant

1 - Not at allimportant

Quality

Price

Purchaseexperience

First useexperience

Usageexperience

FuelConsumption

Maintenance

Looks and Design

After purchaseservice(customerservice, etc.)

Repeat serviceexperience

III. How would you rate Hyundai on following parameters?

19


20/22

5

Stronglyagree

4 - Agree3 - Neitheragree nordisagree

2 -Disagree

1 Strongly

Disagree

Knowledgeable salesperson

Sales person spendenough time beforepurchase

Sales person spendenough time afterpurchase

Display of merchandizeis pleasing

Availability of variants

Attractive discounts

Dcor of the waitingarea is pleasant

Offered test drives

Responds to complaintsquickly

Excellent service stationfacilities

IV. Thinking of your most recent experience with our product/service, how muchdo you agree with the following statements?

5 - Stronglyagree

4 -Somewhat

agree

3 - Neitheragree nordisagree

2 -Somewhatdisagree

1 - Stronglydisagree

Value for money

20


21/22

All commitmentsare fulfilled

Product/serviceoffered are those

what I need

Product/service iseasy to use

Product/service iscompetitivelypriced

V. Overall, how satisfied were you with our product/service?

5. verysatisfied

4.Somewhatsatisfied

3.Neithersatisfied nordissatisfied

2.Somewhatdissatisfied

1.Verydissatisfied

VI. Thinking of similar products/services offered by other companies, how wouldyou compare our product/service offered to them?

6.Muchbetter

5.Somewhat better

4.Aboutthe same

3.Somewhat worse

2.Muchworse

1.Dontknow

VII. Would you recommend our product/service to colleagues or contacts withinyour industry?

21


22/22

5.Definitely

4.Probably

3.Notsure

2.Probablynot

1.Definitelynot

.

22

customer sat report

Documents