preferences of consumers on vespa

8/17/2019 Preferences of Consumers On VESPA

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1.INTRODUCTION

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet customer expectation. It is seen as a key

performance indicator within business and is part of the four perspectives of a

Balanced Scorecard.

In a competitive marketplace where businesses compete for customers,customer satisfaction is seen as a key differentiator and increasingly has become

a key element of business strategy.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.

"Customer satisfaction" is the important statement of the problem in this project.

Measuring customer satisfaction

Customer satisfaction refers to the extent to which customers are happy with the

products and services provided by a business. Customer satisfaction levels can

be measured using survey techniques and questionnaires. Gaining high levels of

customer satisfaction is very important to a business because satisfied customers

are most likely to be loyal and to make repeat orders and to use a wide range of

services offered by a business.


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2.THEORETICAL BACKGROUND OF STUDY

Market

The term market may be considered as a convenient meeting place where buyers and sellers

gather together for the exchange of goods and services. Market means a group of people

having unmet wants, purchasing power to make their demand effective and the will to spend

their income to fulfill those wants.

Marketing

Marketing is a comprehensive term and it includes all resources and set of activities necessary

to direct and facilitate the flow of goods and services form the producer to the consumer

through the process of distribution. Businessmen regards marketing as a management

function to plan promote and deliver products to the clients or customers .

Marketing Management

Marketing management represents an important functional area of business management

efforts for the flow of goods and services from the producer to the consumers. It looks after

the marketing system of the enterprise. It has to plan and develop the product on the basis of

known customer demand.

Marketing Mix

Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in

the target market.

There are four elements or variables that make a marketing mix, they are:

1. Decisions on product or service.

2. Decisions on promotion

3. Decisions on price

4. Decesion on Distribution


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Marketing Research

Marketing research is the systematic gathering, recording and analyzing of the data about

problems connected to the marketing of goods and services i.e. problems relating to product,

price, promotion and distribution of the 4p’s of the marketing mix.Marketing research is

concerned with all those factors, which have a direct impact upon the marketing of products

and services. Marketing research has grown along with the expanded role of marketing as the

focus for the business decision-making.

Consumer

A person who purchase or has the capacity to purchase the goods of service often for sale by

the marketing firm in order to satisfy personal need and desires.

Perception

Perception is the sensing of stimuli external to the individual organism the act or process of

comprehending the world in which the individual exists.

Perception has been defined by social psychologists as the “Complex process” by which

people select organize and interpret sensory stimulation in to a meaningful and coherent

picture of the work.


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Desired sample size:

A sample size of 100 motorcycle owners was specified in Nanded city.Research was undertaken in Vaishnavi motors,Nanded.

Objectives of the study

1. The objective of the study is“Measure customer satisfaction towards Vespa”.

2. To measure customer satisfaction of Piaggio Vespa scooter owners.

3. To know the tastes and preferences of people of when it comes to PiaggioScooters.

4. To find the reasons for buying vespa motorcycle.5. To know the showroom people co-operation & availaiblity of acessories.


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4. INDUSTRY PROFILE

Two-Wheeler industry is one of the largest industries in the automobile sector of global

market. Being the leader in product and process technologies in the manufacturing sector, it

has been recognized as one of the drivers of economic growth. During the last decade, well¬-

directed efforts have been made to provide a new look to the automobile policy for realizing

the sector's full potential for the economy. The liberalization policies have led to continuous

increase in competition which has ultimately resulted in modernization in line with the global

standards as well as in substantial cut in prices. Aggressive marketing by the auto finance

companies have also played a significant role in boosting automobile demand, especially

from the population in the middle income group.

India is the second largest manufacturer and producer of two-wheelers in the world. It stands

next only to Japan and China in terms of the number of two-wheelers produced and the

domestic sales respectively. This distinction was achieved due to variety of reasons like

restrictive policy followed by the Government of India towards the passenger car industry,

rising demand for personal transport, inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s when Automobile

Products of India (API) started manufacturing scooters in the country. Until 1958, API and

Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in

1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy.

The agreement expired in 1971.

In the initial stages, the scooter segment was dominated by API; it was later overtaken by

Bajaj Auto. Although various government and private enterprises entered the fray for

scooters, the only new player that has lasted till today is LML.


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Under the regulated regime, foreign companies were not allowed to operate in India. It was a

complete seller market with the waiting period for getting a scooter from Bajaj Auto being as

high as 12 years.

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5.COMPANY PROFILE

Founded in 1884,Piaggio & C. s.p.a is today one of the leading manufacturers of 2-wheelerand small commercial vehicles in the world. With its registered office in Pontedera(pisa),

Piaggio is the market leader in Europe and has expanded its operations to 24 countries,

including a major presence in Asian Markets.

The product range includes Scooters, mopeds and motorcycles starting from 50 to 1200cc

under the piaggio, Vespa, Gileria, Aprilia, Moto Guzzi, Derbi and Scarabeo brands.The 3 and

4 wheeled light transportation vehicles are marketed under the Ape, Porter and Quargo

brands.

Piaggio Vehicles Private Limited (PVPL), the pioneer of 3-wheeler goods transportation inIndia, is today the no. 1 in its class. By setting global standards in vehicle performance and

customer service, it has revolutionized the 3 wheeler cargo segment in India. Today the

company offers a range of passenger and cargo vehicles for many customized applications.

Piaggio vehicles are engineered for higher fuel efficiency, rugged performance and

outstanding load carrying capability. Living up to Piaggio’s core philosophy, all its vehicles

conform to the most stringent emission norms.

PVPL has now firmly established its position as an undisputed leader in the diesel 3w market.

This impressive growth trajectory would not be possible without PVPL’s advanced R&D

center, modern manufacturing unit and stellar network. In the past 10 years, over 1.5 million

Indian transporters have trusted apé for total dependability, reliability and profitability.

Today, lakhs of tonnes of cargo and millions of passengers are transported daily across the

country on the apé.

Piaggio India has successfully introduced state-of-the-art products with world class

technology in India. Its reputation is built on its efficient network spread across India,

providing worldclass customer care..


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To be the no.1 and the most profitable global player with world class quality and technology

leadership in the light commercial vehicle category offering transportation solutions for

specific customer needs.

To be perceived as a unique, high-impact, fast response, innovative and growth oriented

company which is known around the world for its unmatched level of excellence.

To become market leader in the light transportation vehicle segment, and achieve the status of

world-class company which manufactures & markets a wide range of high quality product to

the total satisfaction of customer in the domestic and overseas market by ensuring:

*Low cost of manufacture

*High profiable growth*Sustainable domestic & global competition

*Maximised stake holder’s satisfaction and pride

*Business Ethics


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Corporate Social Responsibility

In order to improve and facilitate public hygiene, PVPL has donated apé 3-wheeler SpecialPurpose Vehicles for Garbage Collection & Transportation. With a view to encourage greater

participation from students as well as institutions, some of our initiatives in this realm are:

• PVPL sponsored the National Level Science Exhibition, organized by Vidya

Pratisthan, Vidya Nagari, MIDC, Baramati, attracted illustrious visitors such as the

then Hon. President of India, Mr. APJ Abdul Kalam.

• PVPL has sponsored the ‘Interschool Science Quiz Competition’, an event organized by Vidya Pratisthan’s D. Ed College (English & Marathi medium), MIDC, Baramati.

• PVPL has donated Personal Computers to schools at Baramati.

• As a move to promote disciplined driving, PVPL has sponsored one of the Traffic

Signals at Baramati.

• PVPL has also sponsored the Baton Rally at Baramati for Commonwealth Youth

Games.


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PRODUCT PROFILE

VESPA

PVPL is proud to launch the iconic Vespa in India. Vespa is a unique example of immortaldesign that has gone beyond a mere commuting product to become a part of social history and

way of life.

The Vespa is an ageless brand that is now a symbol of a distinctive lifestyle in market after

market around the world. Invented by Piaggio in 1946 as the world's first scooter, the Vespa

rose rapidly in popularity to become a loved and revered emblem of 'made in Italy' and 'a

new, unique way of enjoying mobility'. The Vespa is present in more than 100 countries withover 17 million units being sold since its inception.

With its Indian foray, Piaggio intends to create an exclusive, premium segment for the brand.

The Vespa will be positioned as a lifestyle, iconic, timeless and ageless product that goes

beyond mobility and leverages its heritage and unique values.

Vespa in India will meet the aspirational needs of the fashion, style and brand conscious

individuals who would like to be a breed apart. Predominantly aimed all over the world at a

premium segment of consumers who are looking to own nothing but the best.

The Vespa production plant opened today is the third factory set up by the Piaggio Group in

Baramati, a city in the Pune district of the State of Maharashtra. The area is home to the

manufacturing complex of Piaggio Vehicles Private Ltd., a wholly owned Piaggio Group

subsidiary which already produces three-wheel goods and passenger vehicles (and is the

market leader in India, with annul sales of more than 220,000 vehicles) and, in an adjoining

facility, scooter engines for the Vespa and diesel and turbodiesel engines for the commercial

vehicle ranges produced by Piaggio in India and in Italy, in Pontedera. With the opening of

the Vespa production plant, the Piaggio Group industrial complex in Baramati now provides

jobs for approximately 3,000 workers.


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What it costs

Ex-showroom Rs 66,000 (Maharashtra)

Engine

Fuel Petrol

Installation Inclined from vertical

Type 125cc Single-cylinder, 3-

valve air-cooled, four-

stroke

Compression ratio 10:1

Power 10.06bhp at 7500rpm

Torque 1.08kgm at 6000rpm

Power to weight 88.2bhp per tonne

Transmission

Type CVT

Dimensions

Length 1770mm

Width 690mm

Height 1140mm

Wheel base 1290mm

Chassis & Body

Weight 114kg

Wheels 3-spoke alloy

Tyres 90x100x10 inches (Frontand rear)


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MODELS:

LX125

The Vespa LX 125 is a scooter currently made by Piaggio.

The LX 125 uses the same frame as the LX 50 but features a 125 cc engine capable of a listed

maximum speed of 59 mph (95 km/h). The LX 125, like all modern Vespa scooters features a

4-stroke single overhead camshaft and steel frame construction. Vespa claims 70–75 mpg -

US (3.4–3.1 L/100 km; 84–90 mpg-) fuel efficiency.

The LX models feature an automatic torque slave transmission and front disc and rear drum

brakes.

VX125

The Vespa VX 125 is the second premium scooter from Piaggio. Cosmetically and

mechanically, the scooter is similar to the LX 125 but there are few improvements; most

important of them is the 200mm front disc brake setup. The Vespa VX 125 features the MRF

Zapper tubeless tyres and the instrument cluster has been updated to give a fresh look. The

Vespa VX is powered by the same 125cc single-cylinder air cooled engine which powers its

lower version. The engine develops 10.06bhp of power at 7500 rpm which is transmitted to

the rear wheel via a CVT transmission


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6. SWOT ANALYSIS

Strength:

* Brand itself speaks* Pick up

* World wide market

* Potential Parent Brand

Weakness:

* Price

* Reluctant to change

* No scope for semi urban places

* Lack of celebrity marketing* Limited Models

Opportunities:

* Introducing more models* Expansion Of territory in semi urban areas

Threats:

*Compeitators

* Political Factors

* Licensing/Legal Factors


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7.ANALYSIS OF DATA COLLECTED

Statement Of Problem

To understand and identify what the consumer feels or perceives about Piaggio motor bikes.

This will help the marketer to identify which all are the factors that a consumer looks in to

when he selects a particular bike. And also explains how a consumer selects and interprets

the qualities of bike that Piaggio offers.

Objectives of the study

1. The objective of the study is“Measure customer satisfaction towards Vespa”.

2. To measure customer satisfaction of Piaggio Vespa scooter owners.3. To know the tastes and preferences of people of when it comes to Piaggio Scooters.4. To find the reasons for buying vespa motorcycle.


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1.The age group in which respondents lie under:

Interpretation / Analysis:

Most of the respondents lie in the age group of 18-25 i.e 30%.Followed

by 33% of which lies under the group of 26-35, 29% of the respondents

are from the age group of 36-50 and 08% of people were lying under age

group of 50 & above.

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Age Group Respondents

18-25 30

26-35 33

36-50 29

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2. Respondents Work Status/Employment Status:

WORK STATUS Respondents

Professional 33

Business 12

Student 27

Others 28

Interpretation / Analysis:

In the above graph we can see the work status in which 33 % are professionals,

12% are from business category,12% are students and remaining 28% aquired

by others( Non-Professionals).

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3.Respondents Source of Awareness with regard to Piaggio Vespa Scooter:

Source Of Awareness Respondents

Tv Advertsement 60

Newspaper 22

Friends & Peer 14

Radio 04

Interpretation/Analysis:

In the above graph it is shown that 60% of people come to know about vespa through Tv

advertisement,22% of people come to know through newspaper followed by Friends & peer

i.e, 14% and remaining 04% through Radio.

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4.Respondents Satisfaction towards price of vespa

Price Satisfaction Respondents

Satisfactory 45

Unsatisfactory 55


In the above graph it is shown that 45% of respondents are satisfied towards vespa scooter

price and remaining 55% of people are unsatisfied.

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5. Respondents rating towards Bodystyle, Design & Look of Vespa Scooter

Ratings Respondents

Excellent 24

Good 36

Average 30

Poor 20


In the above graph it is shown that 36% of people rated Good,30% of people rated it as

average and 24% of people rated as Excellent and remaining 20% of people rated it as Poor.

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6. Respondents Satisfaction Towards Driving comfort of Vespa?

Driving Comfort Respondents

Excellent 36

Good 28

Average 22

Poor 14


In the above graph it is showed that 36% of people expressed it as Excellent,28% of people

said it as good,22% of people said it as average,& remaining 14% of people rated it as poor.

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7.Respondents Preference towards colour of vespa?

Colour Preference Respondents

White 28

Yellow 38

Orange 14

Black 20


In the above graph it is showed that 38% of respondents prefer yellow colour,28% of people

prefer white,20% of people prefer for black & remaining 14% for Orange.

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8.Stisfaction towards pickup and Performance?

Pickup & Performance No.of Respondents

Satisfactory 78

Unsatisfactory 22


In the above graph it is showed that 78% of people are satisfied towards pickup &

performance and 22 % people are unsatisfied.

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9.Response Towards the Quality of Vespa scooter

Quality Respondents

Excellent 26

Good 40

Average 20

Poor 14

Interpretaion/Analysis:

With respect to quality in the above graph it is showed that 40% of people rated it as

good,26% of people rated it as Excellent,20% of people rated it as Average and 14 % people

rated it as Poor.

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10.Response towards various attributes Of Vespa?

Attributes Respondents

Breaking 30

Safety 26

Storage 44


In the above graph it is showed that 44% of people like its storage capacity, 26% towards its

safety & 30% people like its breaking system.

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11. Response towards Features of Vespa

Technical Features Respondents

Style & Design 22

Acceleration 36

Riding Comfort 28

Mileage 14


In the above graph it is demonstrated that 36% of respondents choose its acceleration,28%

people choose its riding comfort,22%people prefer to style & mileage and remaining 14%

people reffered it for mileage.

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12. Response towards co-operation by showroom people?

Co-operation Respondents

Satisfactory 88

Unsatisfactory 12


In the above graph it is demonstrated that 88% of people are satisfied with the co-operation

towards sowroom people & 12% people are not satisfied.

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13.Response towards availability of accessories and spare parts

Availaiblity Respondents

Satisfacctory 60

Unsatisfactory 40


In the above graph it is showed that 60% respondents are satisfied towards availability of

spare parts & accessories & 40% people are unsatisfied.

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15.Response Towards Recommendation Of Vespa To others:

Recommendation Respondents

YES 82

NO 18


In the above graph 82% of people respond positively toeards recommending the scooter to

others and remaining 18% reacted negatively.

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8.FINDINGS, SUGGESTIONS & CONCLUSION

Findings

• More focus was towards Urban Area.

• Relaunch of outdated model lead to dis-intrest in youth to purchase. • It succeded in attracting professional but failed to reach business people • Lot of dis-satisfaction towards price as because of price skimming strategy used by

Vespa. • Storage & Pickup considered to be major attributes of the vehicle . • Mileage acted as a loophole in sales of a scooter. • Lack of service centres in semi-urban places.

Suggestions

. Need to expand the territory for semi urban areas.

• Modification or Updation generates intrest in youth.

• Need to improve the boot space of the vehicle so that it acts major advantage to

business people.

• Need to reduce the price as to beat the compeitation.

• Improvement in Mileage


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CONCLUSION

During the live project we found that so many people and officials use vespa bikes because of

pickup. Some of the office going people and students(Female) prefer vespa because of its

easy handling too.

People preference to vespa scooters is rapidly increasing because of Pickup and satisfactory

after-sale service.

LIMITATIONS OF THE STUDY:

1. The responses given by the respondents may not be true.

2. The respondents may be careless in responding to the questionnaire.

3. The respondents may be illiterate


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Learning Experience

This study made us to understand the demand and factors which affect the buying preference

of a consumer. They always take care of customer taste out of the 4 ‘P’s of marketing price, product plays very important role though promotion doesn’t play that much important role

because in our survey we found that the least factor which affects the consumer to vespa

bikes was promotion, but another fact is that consumers preference is always quality and

prices of the bike.

This company is majorly influenced by price factor as in this field too many competitors are

ready to occupy the market share as consumer taste and preference vary according to various

factor so by understanding the consumer need we must fix the competitive price.

The pie chart creates a visual model, which people can use when comparing different data

sets. Using different colors, pie charts divide information into sections resembling pie slices

which is accompanied by a number of percentages, and its size changes accordingly. Graphs

and charts condense large amounts of information into easy-to-understand formats that clearly

and effectively communicate important points.

In the near future consumers desires more and more bikes to be introduced in the market and

at the same time they should maintain quality because most of the consumers prefer Vespa

scooter by quality .


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ANNEXURE

QUESTIONNAIRE

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REFERENCE

1. www.VespaIndia.com

2. www.Overdrive.com

3.Mcgraw hill publications

preferences of consumers on vespa

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