AN ANALYSIS OF MYSTERY AN ANALYSIS OF MYSTERY SHOPPING IN TERMS OF SHOPPING IN TERMS OF CONDUCTING MARKET AUDIT CONDUCTING MARKET AUDIT ( A STUDY CONDUCTED IN SPECIAL REFERENCE TO TVS A STUDY CONDUCTED IN SPECIAL REFERENCE TO TVS MOTORS LTD. UNDER THE BRAND BANNER OF HS BRANDS MOTORS LTD. UNDER THE BRAND BANNER OF HS BRANDS INTERNATIONAL, BANGALORE INTERNATIONAL, BANGALORE ) (A report submitted in partial (A report submitted in partial fulfillment for the requirement fulfillment for the requirement of the award of Honours Degree of the award of Honours Degree in Business Administration) in Business Administration) UNDER THE GUIDANCE OF: UNDER THE GUIDANCE OF: MS. SWETA RANI MS. SWETA RANI (CO-ORDINATOR, BBA) (CO-ORDINATOR, BBA) REPORT COMPILED AND REPORT COMPILED AND PREPARED BY: PREPARED BY: SWATI SINHA SWATI SINHA ROLL NO. 41 ROLL NO. 41 SESSION- (2007-10) SESSION- (2007-10)
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AN ANALYSIS OF MYSTERYAN ANALYSIS OF MYSTERY
SHOPPING IN TERMS OFSHOPPING IN TERMS OF CONDUCTING MARKET AUDITCONDUCTING MARKET AUDIT
((A STUDY CONDUCTED IN SPECIAL REFERENCE TOA STUDY CONDUCTED IN SPECIAL REFERENCE TO TVS MOTORS LTD. UNDER THE BRAND BANNER OFTVS MOTORS LTD. UNDER THE BRAND BANNER OF
(A report submitted in partial(A report submitted in partial fulfillment for the requirement offulfillment for the requirement of the award of Honours Degree inthe award of Honours Degree in
Business Administration)Business Administration)
UNDER THE GUIDANCE OF:UNDER THE GUIDANCE OF: MS. SWETA RANI MS. SWETA RANI(CO-ORDINATOR, BBA)(CO-ORDINATOR, BBA)
Patna Women’s College(NAAC Accredited-Grade A with CPE
Status)Bailey Road
Patna-800001, Bihar
Date: ……………......
Guide’s certificate
To whom it may concern
This is to certify that this Project Report titled-“A Study of Mystery Shopping in HS BRANDS International, Bangalore” (A Study conducted at HS Brands International, Bangalore; with special reference to TVS Motors Ltd.), has been compiled and prepared by Miss. Swati Sinha, Roll/41, BBA-II, Session: 2007-2010; under my guidance and supervision.
This entire Project Work is an outcome of her own creativity, concept and imaginative effort.
I recommend this Project for being accepted and evaluated.
………………………………..
Miss Sweta Rani (Guide & Coordinator)
ACKNOWLEDGEMENTsACKNOWLEDGEMENTsAny effort and activity always needs to be acknowledged by the person concerned in terms of thanksgiving. At the outset, I extend my deep gratitude to God Almighty without whose blessings and support, I could not have undertaken this Project Assignment at HS Brands International.
My Parents- Dr. Pradeep Kr. Sinha and Mrs. R.K. Sinha and my elder brother Mr. Mayank Sinha, have been very cooperative and supportive in every respect as far as managing this entire activity has been concerned. My Principal- Dr. Sister Doris D’Souza A.C. also needs to be thanked in this regard for her valuable consent which she provided for my Summer Training. My Faculty Members, consisting of my Co-ordinator Ms. Sweta Rani, and others deserve special thanks for giving me a positive guideline in every respect as far as preparing the complete report is concerned.
This Report of mine would not have been completed without the active support of my Guide-Ms. Sweta Rani, who was instrumental in deciding the Project Theme and has been responsible for structuring the total Report format including the Basic Project Protocol. This entire Report has been her brain child and I owe her a deep sense of gratitude in this context.
My Friend, Ms. Shruty Roy has been a great source of inspiration during this entire Project Study and I shall never forget her support and co-operation.
The sense of gratitude shall not be complete, unless and until I express my thanksgiving to Mr. Sanjeev Shenoy, Senior Executive in the Organization under whose guidance this entire Study was conducted and completed. Without his support and motivation, this entire compilation would not have been ready.
Finally I take this opportunity of extending my thanks giving to each and every individual, with whom I came across and who directly or indirectly helped me in undertaking the study.
Place- Ms. Swati sinhaDate-
CONTENTSCh. No. PAGE NO.
PREFACE
PROFILE OF THE STUDY
1. Hypothesis of the Study (i)
2. Objectives of the Study (ii)
3. Research Methodology (iii)
4. Limitations of the Study (iv)
Ch. 1 HS BRANDS INTERNATIONAL -An Introduction
HS Brands International
Services
Business Focus
Circle of Success
Why Service Sleuth?
TVS Motor Company Ltd.
TVS Brands
Ch. 2 ORGANIZATIONAL FRAMEWORK
HS Brands’ Team
Board of Directors
Ch. 3 COMMERCIAL PARAMETERS
Financial Highlights
Balance Sheet as at 31st March, 2008
Profit and Loss Account for the year ended 31st March 2008
Ch. 4 CONCEPT OF MYSTERY SHOPPING
What is Mystery Shopping
Why use Mystery Shopping
Benefits of Mystery Shopping Program
History of Mystery Shopping
Who uses Mystery Shopping
Mystery Shopping Process
Mystery Shopping Methods
Steps involved in Mystery Shopping
Difference between Mystery Shopping & Marketing Research
Ch. 5 ANALYSIS & INTERPRETATION OF THE STUDY
Ch. 6 FINDINGS OF THE STUDY
Ch. 7 CONCLUSIONS & RECOMMENDATIONS
REFERENCES
ANNEXURE
PREFACE Summer Training Programme and Projects are an inevitable part of
a Professional Curriculum. On-the-job Training is “to learn by
doing itself”. The total concept of summer training rotates around a
system of protocols where the trainee/participant plan Study and
the orientations being derived from the Study Concerns can
exposure to a level of knowledge. Keeping all this in view, I was
placed with the HS Brands International, Bangalore. I was
assigned a task concerning a Study related to Mystery Shopping in
TVS Motors Ltd. and a hypothetical aspect of the standing of HS
Brands International in Bangalore. The Profile Protocol of a Report
generally is based upon a conceptual framework so as to provide
précised information about the entire Project Work. Keeping this
point it has been conceived, studied and analyzed.
ProfileProfile of theof the studystudy
Hypothesis of the
StudyThe principle hypothetical assumption of this study is based upon the fact
that every organization requires a mystery shopping technique, which gives
the feedback of the customers on different basis and what is primarily
important refers to the internal setup and the Intra-Mural atmosphere. The
element of mystery shopping is quiet prominent and apparent in every
organizational scenario and precisely speaking, it needs to be managed in a
planned way so as to carve out the best possible results. This study assumes
that even in an organization like TVS Motors Limited, the element of
mystery shopping needs to be practiced and analyzed.
Objectives of theObjectives of the
StudyStudy
This entire study has been designed and developed to undertake certain
specific Aims and Objectives, and the major ones in this regard are:-
To provide a level of service that attracts a greater flow of customers,
enhances loyalty and increases the likelihood of both purchases and
recommendations.
To improve the performance, attitudes and behavior of customer-facing
staff in either hospitality, retail or trade outlets, by providing tangible
feedback about each sales person’s customer handling technique.
To check that current promotions are being sold and ensure that special
offers are being honoured and adhered to in the way that you intended.
To ensure that the required standards in and around the outlet premises
are being met.
Methodology of theMethodology of the studystudy
The study is about the practice of mystery shopping of HS Brands
International in TVS Motors Limited. The study is done on the basis of both
primary and secondary data bases collected from the organization.
PRIMARY DATA SOURCES:
Help of the questionnaire from non-executives.
Informal talk with the executive personnel.
Informal talk with the employees of the organization.
Informal talk with the customers.
SECONDARY DATA SOURCES:
Information by visiting different TVS Motors Showrooms.
Information from the organization’s website.
LimitationsLimitationsIt is said there is limitation to everything. Though sufficient care was taken
to minimize the error as much as possible but still there were limitations of
the study. Few of these are as follows:
Mystery shopping relies on the subjective judgment of researchers, so
care must be taken in training them to approach each encounter
consistently and to rate experiences as objectively as possible.
Some of the responses given were not clear.
Mystery shopping is inappropriate for some industries, where it is
impossible to “create” a customer who is unknown to the customer
service organization.
Since some amount of deception is involved in “mystery shopping”, it
is important to explain to employees the reason for and the value of this
approach, otherwise there is the potential to damage employee morale
CHAPTER-1CHAPTER-1
HS BRANDSHS BRANDS INTERNATIONAINTERNATIONA
L- AnL- An IntroductionIntroduction
INTRODUCTIONINTRODUCTIONHS Brands International is a joint company of Service Sleuth and The
Mershimer Group. Both industry leaders have joined resources to keep
Client Company ahead of its losses and on top of its operations at all times,
any day of the week. Through its extensive network of services and
dedication for the top performance it offers customized programs adapted to
meet the needs.
The Mershimer Group is Industry leader in:
Royalty Assurance
Loss Prevention
Brand Protection
The Mershimer Group provides outsourced Royalty Assurance and Loss
Prevention solutions for franchised and company owned retail and restaurant
businesses. They “Protect America’s Favorite Brands” from financial loss
which can result from underreporting of sales, inventory shrinkage,
employee theft, and other fraudulent activities. This type of financial loss
drains bottom line profits.
Using proven strategies and tactics, The Mershimer Group creates proactive
programs which vary depending on the needs of the client. Programs may
include any combination of mystery shops, coordination of investigations,
compliances and financial audits, awareness materials, standards
evaluations, and employee hotline services.
They work with each client to build effective program to meet their needs. In
addition, it also works with its clients to create loss prevention and royalty
assurance policies and procedures, and other solutions for controlling
workplace loss.
Service Sleuth is Industry leader in:
Mystery Shopping
Data Collection
Surveying & Auditing
Service Sleuth will send an experienced auditor to your store, restaurant or
other business for an anonymous, unannounced site visit. Frequently, the
“shopper” will have a background in the same business or one very similar.
The shopper will observe and report on aspects of your business such as:
PROCEDURES - Policies, selling skills and merchandising.
OPERATIONS - Cleanliness, safety, security and staffing.
INTEGRITY - The handling of cash and customer receipts.
CUSTOMER SERVICE - Courtesy, customer interaction and problem
solving.
RETENTION ISSUES - Unsolved problems that would keep a
customer from returning or recommending the business.
GAMING EVALUATIONS - Slots, Table Games and Cage.
SERVICESThe main services include:
Mystery Shopping
Customer Data Collection
Surveying & Auditing
Customized Analysis and Consultation packages are available in many
different areas of operation, including but not limited to training programs,
marketing programs, sales promotions, incentive programs and store
operations. Experienced business consultants are available to review mystery
shop data and provide the following services:
Detailed &Customized Analysis Reports: Experienced business
professionals and certified trainers will prepare your customized report
containing analysis on opportunities and strengths recorded in the
Mystery Shoppers’ evaluations.
Survey Recommendations: Recommendations are provided in the
report on ways to improve the results obtained in the surveys through
question revisions, addition of new questions and addition of new
sections.
Consultation: Reports may contain consultation on operational
procedures, training needs, effectiveness of marketing, ideas and
suggestions on incentive programs and recommendation on sales
promotions to enhance your current corporate values and culture.
References: Report may contain references to publications, “canned”
training programs, best practice business methods and time-tested
business models that could be beneficial for your overall business results.
BENEFITS:
Save time by having experienced professionals review your data and
create your analysis.
Increase the effectiveness of your survey though recommendations
on questions and survey structure.
Increase sales and profit potential through consultative
recommendations.
Develop your workforce potential by utilizing the references which
will increase business knowledge, reinforce best practice methods and
enhance training.
BUSINESS FOCUSWith the above services, Service Sleuth helps with “Laying the Foundation” at client’s business. This step is very important to a successful business!
CIRCLE OF SUCCESS• Obtain a return on your investment with customized
analysis/consultation on all data received by the Mystery Shoppers.
• Consultation will advise on continued development plans and incentive
programs that reinforces core company values.
• Continued evaluations and feedback from Mystery Shoppers will
reinforce desired behavior.
BACKGROUND HISTORYService Sleuth is an independent division of Howard Services, which is co-owned
and operated by a Licensed Private Investigator that is one of only a few thousand
security professionals internationally that holds the Certified Protection
Professional (CPP) designation. This PI license is required for mystery shopping in
the state of Nevada. They have it! Many mystery shopping companies don't.
Mystery shopping companies that do not have a PI license must either perform
mystery shops illegally or hire a private investigator that most likely is not an
experienced mystery shopper. Because we have this license, it can protect you in
the event of litigation.
Statistics have shown that more than 90% of customers will not complain when
they are dissatisfied, and often you may not be aware of the 10% who do complain.
Most of these dissatisfied customers will defect to competition and will share their
negative experience with up to 15 of their friends and family members.
Considering that it costs six times more to attract a new customer than it does to
keep an existing one, retaining its current customers is not only essential, it is the
lifeblood of your business. In this highly competitive environment a business
cannot afford to lose any customers to its competition. These services will prevent
the loss of the most valuable asset, hard-earned customers. Since 1992, Service
Sleuth™ has been helping large and small service and product-oriented businesses
build customer loyalty and win new customers with a dramatic positive effect on
profitability. It assures consistent quality, personal service, a clean environment
and employee integrity. As any good businessperson knows, it takes years to gain a
customer, but just seconds to lose one.
As a division of Howard Services, we have advised hundreds of retail, industrial,
hospitality and distribution clients in crime prevention, security and shortage
control. Many of our Mystery Shopping Clients have found this link to be very
advantageous when their needs moved beyond Customer Services and procedural
issues. Our Total Loss Prevention Program goes far beyond Customer Service and
Security Equipment Design. Services we offer include (among others):
“Spotting” (procedural issues related to integrity among employees).
Competitive Shopping, to learn what your competition is doing right (and
wrong) and what they are saying about your products and services.
Customer Retention Analysis.
Incentive Programs.
Comment Cards.
Survey Kiosks.
Customized Services.
WHY SERVICE
SLEUTH?WHY THEY ARE DIFFERENT?
T he Sherlock Difference
Service Sleuth has its own customized and advanced version of the specialized
mystery shopping software, SASSIE called Sherlock.
Licensed Private Investigators
Why their Clients Switched to Service Sleuth?
There are over 500 Mystery Shopping firms, so why Service Sleuth? In the early
days of HS Brands, the owners performed many of the shops themselves. They
were familiar with the process; having been “shopped” themselves during their
early years in retail or, later, as managers, being in charge of securing mystery
shopping services. They have also worked in restaurants and retail and fully
understood what it feels like to be on the business side of the counter. Through this
background they became thoroughly familiar with the strengths and weaknesses of
the Mystery Shopping Industry. The main aim in creating Service Sleuth was to
offer a Mystery Shopping operation truly “above and beyond” the other providers.
Below are some of the common issues companies have with Mystery Shopping
companies, we designed every aspect of our services to overcome and eliminate
these weaknesses—right from our beginning:
Poorly qualified shoppersPoorly written reportsReports with few or no explanationsOld reports (of little use to clients)
Poor communication with the clientDisorganization
TVS MOTORTVS MOTOR COMPANY LTD.COMPANY LTD.
TVS Motor Company is one of the premiere automobile companies in India. The
word TVS stands for TV Sundaram Iyengar and Sons Limited which is the holding
company for the TVS Group of companies. The firm is engaged in the
manufacturing of almost all kinds of automotive components, two wheelers and a
few other industrial products. The company was founded by TV Sundaram Iyengar
in 1911. The company is headquartered in Chennai and its manufacturing and
R&D units are located at Mysore and Hosur, near Bangalore, and Baddi in
Himachal Pradesh. TVS Motor Company is the first two-wheeler manufacturer in
the world to be honored with Deming Prize for Total Quality Management.
About the CompanyAbout the CompanyTVS Motor Company Limited is the third largest two-wheeler manufacturer in
India and globally among the top ten. It is the flagship company of TVS Group, a
USD 2.2 billion conglomeration of companies. At present, the group is comprised
of more than 30 companies and employs more 40,000 people worldwide. Its dealer
and service network is widely spread in India.
TVS has enjoyed a steady growth since its inception. It has continuously expanded
and diversified, and brought in new verticals within its fold. Today it boasts a
strong presence in the manufacturing of two-wheelers, auto components and
computer peripherals. The company is also involved in the distribution of heavy
commercial vehicles, cars, finance and insurance. With such a portfolio, the
company contributes a lot to Indian economy.
The company launched the first of its two-wheeler product in 1980. It was a 50cc
moped, which was successful because of its capability to carry two people. It
collaborated with Suzuki Motor Corporation of Japan, for the manufacture of 100
cc motorcycles under the brand name of Ind-Suzuki Motorcycles. Subsequently,
the company changed its name to TVS Suzuki Ltd. However, the collaboration
with Suzuki was only for motorcycles. The collaboration with Suzuki ended in
2001 and thereafter, the name was changed to TVS Motor Company. The company
has set up an overseas manufacturing unit in Indonesia.
TVS BrandsTVS Brands
TVS Apache
TVS Apache is an exciting offer from TVS. A powerful
blend of contemporary design and engineering, TVS Apache
is superbly styled with fantastic finish. The mighty machine has sleek finish with
lines that flow smoothly and seamlessly.
TVS Apache RTR FI 160
This 160cc Apache launched in the growing premium
segment, was declared Performance Bike of the year 2008 by Auto Business
Standard Motoring, NDTV and Overdrive. It also bagged the NDTV Car & Bike
Award for Best Design of the year.
TVS Centra
TVS Centra is an efficient bike in the popular 100 cc segment in
India. Thanks to the VTI (Variable Timing Intelligent) engine
technology, it is one of the most fuel efficient bikes in India. Coming with a slew
of innovative technologies and superb design, the bike promises style, mileage and
Sanjeev Shenoy, Director of Business Development - Asia
Board of directors ofBoard of directors of tvs motors ltd.tvs motors ltd.VENU SRINIVASAN
Chairman & Managing
Director
K.N.
RADHAKRISHNAN
President
T. K. BALAJI
H. LAKSHMANAN
T. KANNAN
N. GANGA RAM
C. R. DUA
K. S. BAJPAI
T. R. PRASAD
GOPAL
SRINIVASAN
CHAPTER-3CHAPTER-3
CommercialCommercial parametersparameters
Financial HighlightsFinancial HighlightsFinancial parameters: In Crores (Rs.)
PARTICULARS 05-06 06-07 07-08
Sales and Other Income 3,306 3,921 3,310
Profit Before Interest, Dep. &
Tax
275 203 132
Profit Before Tax 168 91 35
Profit After Tax 117 67 32
Net Fixed Assets 794 1,003 1,043
Share Capital 24 24 24
Reserves & Surplus 742 786 798
Net Worth 673 751 769
Total Borrowings 385 634 666
Earnings Per Share (Rs.) 4.93 2.80 1.34
Dividend Per Share (Rs.) 1.30 0.85 0.70
Book Value Per Share (Rs.) 28.04 31.29 32.04
BALANCE SHEET AS AT 31 st MARCH,
2008
PARTICULARS SCHEDULE 2007(RS. IN CRORES)
2008(RS. IN CRORES)
SOURCES OF FUND
Shareholders’ Fund:
Share Capital I 23.75 23.75
Reserves & Surplus II 785.52 797.83
TOTAL 809.27 821.58
Secured Loans III 506.16 452.68
Unsecured Loans IV 213.66 127.40
Deferred tax liability (net of deferred tax asset) 159.01 154.90
TOTAL 1,601.84 1,642.82
APPLICATIONS OF FUNDS
Fixed Assets:
Gross Block 1483.01 1790.97
Less:-Accumulated Depreciation 685.93 774.49
Net Block V 797.08 1016.48
Capital Work-in-Progress VI 205.83 26.57
Investments VII 344.74 338.96
Current Assets:
Cash and Bank Balances VIII 86.56 3.73
Advances and Other Assets IX 735.84 771.06
TOTAL (A) 822.40 774.79
Current Liabilities & Provisions:
Current Liabilities X 577.02 505.76
Provisions XI 49.73 60.99
TOTAL(B) 626.75 566.75
Net Current Assets (C)=(A-B) 195.65 208.04
Miscellaneous Expenditure(to the extent not written off or adjusted)
XII 58.54 52.77
TOTAL 1,601.84 1,642.82
Profit and Loss Account for the year ended 31st March 2008
RS. IN CRORES
Year ended 31-03-2007
Year ended 31-03-2008
Gross sales 4,473.44 3,683.53Less: Excise duty 618.48 464.03Net sales 3,854.96 3,219.50Other income 65.93 90.85Total Revenue 3,920.89 3,310.35Raw materials and components consumed 2,903.37 2,445.51Salaries and wages, stores consumed and other expenses 812.41 730.74Miscellaneous expenditure 1.88 1.95Sub Total 3,717.66 3,178.20Profit before Interest, depreciation and tax (A – B) 203.23 132.15Interest and finance charges (net) 24.78 2.19Depreciation 87.60 94.59Profit before tax 90.85 35.37Provision for taxation 9.50 3.65Provision for fringe benefit tax 4.75 4.06Provision for deferred tax 10.00 (4.11)Profit for the year (after tax) 66.60 31.77Balance profit brought forward 35.50 29.09Profit for the year (after tax) 66.60 31.77Total 102.10 60.86Tax relating to earlier years 0.32 –Interim dividend paid 16.63 –Dividend tax paid 2.33 –Proposed dividend 3.56 16.63Provision for dividend tax 0.61 2.83Transfer to general reserve 49.56 10.00Balance surplus carried forward to Balance Sheet 29.09 31.40Total 102.10 60.86Nominal value of each share in rupees 1.00 1.00Earnings per share in rupees on 23,75,43,557 shares 2.80 1.34Diluted earnings per share in rupees 2.80 1.34
CHAPTER-4CHAPTER-4
Concept ofConcept of mysterymystery shoppingshopping
What is mysteryWhat is mystery shopping?shopping?
• Mystery Shopping is the practice of using trained shoppers to anonymously