ACKNOWLEDGEMENT Words are only vehicles, which would carry my emotions and thoughts, when I step in the door of completion of my project work for summer training of two months. It gives me great pleasure and privilege to express my heartily thanks and deep sense of gratitude towards my guide, Prof. R. Pahurkar, for his sterling efforts, amicable assistance, and inspiration in all phases of the project work toward the path of completion. I am grateful to Piaggio Vehicles Pvt. Ltd., Baramati for giving me the permission for the project work, and availing me their facilities. I am indebted to Mr. S. S. Sawant (Service Manager) and Mr. K. Kenche (HR Manager) for their prompt assistance and guidance during the course of my project work. I am grateful to S. P. Enterprises, Baramati for giving me the permission for the project work, and availing me their facilities. I am indebted to Mr. P. Wabale (Chief Manager) and Mr. N. Bankar (Head Sales Executive) for their prompt assistance and guidance during the course of my project work. I also take this opportunity to express my sincere thanks toward all the members from Piaggio Vehicles Pvt. Ltd., Baramati for sparing their valuable time especially while clearing my vague concepts in fields of their expertise. I am thankful to Dr. B. V. Sangvikar, HOD, Department of Management Sciences, for his encouragement. I am extending my Department of Management Sciences (PUMBA) Page 1
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ACKNOWLEDGEMENT
Words are only vehicles, which would carry my emotions and thoughts, when I step
in the door of completion of my project work for summer training of two months.
It gives me great pleasure and privilege to express my heartily thanks and deep sense
of gratitude towards my guide, Prof. R. Pahurkar, for his sterling efforts, amicable
assistance, and inspiration in all phases of the project work toward the path of completion.
I am grateful to Piaggio Vehicles Pvt. Ltd., Baramati for giving me the permission for
the project work, and availing me their facilities. I am indebted to Mr. S. S. Sawant (Service
Manager) and Mr. K. Kenche (HR Manager) for their prompt assistance and guidance
during the course of my project work.
I am grateful to S. P. Enterprises, Baramati for giving me the permission for the
project work, and availing me their facilities. I am indebted to Mr. P. Wabale (Chief
Manager) and Mr. N. Bankar (Head Sales Executive) for their prompt assistance and
guidance during the course of my project work.
I also take this opportunity to express my sincere thanks toward all the members from
Piaggio Vehicles Pvt. Ltd., Baramati for sparing their valuable time especially while clearing
my vague concepts in fields of their expertise.
I am thankful to Dr. B. V. Sangvikar, HOD, Department of Management Sciences,
for his encouragement. I am extending my thanks to all those persons who have helped me,
directly or indirectly, in completing the project work.
I hope that I have been successful in my endeavor. Discrepancies, mistakes, if any, are
solely mine.
Sameer V Mahajan
MBA++ Marketing
PUMBA
Department of Management Sciences (PUMBA) Page 1
EXECUTIVE SUMMARY
The automotive industry is at the centre of India’s new global dynamics. PIAGGIO
VEHICLES PRIVATE LIMITED (PVPL) is a division of PIAGGIO GROUP, having a
Piaggio’s product range covers three wheelers and light commercial vehicles. Piaggio
Vehicles Pvt. Ltd. Baramati wants to shift from being process centered to more customer
centered. The unit has good track record with excellent customer retention and customer
satisfaction. The management felt the need to find out real picture.
The project was really challenging. As the project title “CUSTOMER
SATISFACTION SURVEY” suggests that it is all about the marketing and the commercial
aspect of the company. It involved meeting 100 existing customers, taking their interview and
finding out what they really perceive about the product performance. The domain of project
was Baramati city of Pune district and the respondents were existing customers of S. P.
Enterprises, Baramati (dealer). While doing survey I realize that the things learnt from the
books are quite different from the actual practice in field.
The body of the project report takes a micro level approach, using each step of the
marketing research process. The main source of analyzing the data is through questionnaires.
A thorough analysis has been done in research methodology part to find the advantages and
disadvantages of the company. A complete analysis of variance has been done to find the
kind of satisfaction PVPL’s Service Stations provides to their customers. The best part of this
project report is the analysis and interpretation of the various services provided by Service
Station. This part directly shows whether the customers are satisfied with the products and
services of PVPL and criticizes the ill part of the company.
The major objectives of project were as follows…..
To ascertain the level of satisfaction among the Piaggio vehicle owners (three
wheelers) with respect to services provided by authorized service stations.
To evaluate critically market acceptance of Piaggio Group (PVPL) products.
Customer perception towards the products of PVPL.
The ways to retain the existing customers and improving customer base of three
wheelers to service station.
Department of Management Sciences (PUMBA) Page 2
After gathering of data and doing analysis it was felt that the dealer’s people should
visit the customers and the villages regularly which was not possible because of limited
numbers. Thus after considering the limitations the recommendations given were as
follows….
Forming Customers Friend Cell (CFC) in each village which would comprise of
the existing customers itself and providing them necessary training to check the
maintenance aspects of the vehicle, informing them about the servicing schedules
etc. This cell would be the representative of the dealer in the village.
Conducting Seminars and social events yearly. This will improve customer
involvement.
Many more suggestions were given to the management. These few recommendations
will be implemented from this year. At the last part I wrap up the project with suggestion and
recommendations to enhance the future growth and prospects of the company.
Department of Management Sciences (PUMBA) Page 3
I N D E X
Acknowledgement
Executive summary
1. Introduction
2. Industry profile
a. Three wheeler industry
b. Analysis of competitors
c. Growth prospect and key drivers
d. Environmental and safety concern
3. Company profile
a. Mission
b. Vision
c. Piaggio Vehicles Pvt. Ltd. Baramati
d. S. P. Enterprises Baramati
e. Future plans
f. Product profile
4. Research methodology
a. Problem definition
b. Objectives
c. Scope of study
d. Research design
e. Sampling
f. Data collection
g. Limitations of study
5. Data analysis
6. Findings
7. Recommendations
8. Conclusion
Questionnaire
Biblography
Department of Management Sciences (PUMBA) Page 4
LIST OF TABLES
Table No. Table Page No.
01 Category wise Production percentage
02 Service frequency of vehicles
03 Service frequency at service station
04 Overall experience
05 Past experience with Piaggio vehicles
06 Types of work at workshop
07 Advance booking
08 Warranty cases handling
09 Frequency of maintenance
10 Interaction with service advisor
11 Understanding of problem stated
12 Road test
13 Delivery of vehicles
14 Estimates of cost and time
15 Competence of mechanics
16 Service recommendation
17 Infrastructure and cleanliness at work place
18 Spare parts experience
19 Repetition of work
Department of Management Sciences (PUMBA) Page 5
LIST OF FIGURES
Figure No. Figure Page No.
1 Category wise Production percentage
2 Category wise annual sales volume
3 Category wise production trend
4 Three wheelers sales data
5 Usage wise market of three wheelers
6 Market share of three wheelers
7 Region wise sales of Piaggio group
8 Category wise sales of Piaggio
Department of Management Sciences (PUMBA) Page 6
I N T R O D U C T I O N
Department of Management Sciences (PUMBA) Page 7
CUSTOMER SATISFACTION
Today the companies are facing their toughest competition ever, due to numerous
factors. And the entire success of the company lies in the amount of belief and loyalty; its
customers are having in it. The amount of faith that is vested in the company by its customers
determines the way the company’s preceding. In this digitally enhanced world, marketing has
lost its prime scope and new terms have started creeping in its contents and one can see
clearly that a vast majority of these are ‘customer focused’. And the rest they are from
‘Information Technology’. So customer plays the important role behind the success of a
company, no matter what levels of technology it has and what levels of turnover they make.
Now with the technological interference, the war between the companies has shifted from
the grounds of Product, Price, Place and Promotion to single ‘P’ Pleasure of Person. And that
person is the ‘Customer’. Also gone are the days of creating customers. It is now acquiring
and ‘sustaining’ the customer that plays a major role in deciding the victor in such wars.
The customer satisfaction is thus vital element in success of company. Satisfaction is
an individual’s feelings of pleasure or disappointment resulting from comparing a product’s
perceived performance (or outcome) in relation to his or her expectations. Whether the buyer
is satisfied after purchase depends on the offer’s performance in relation to the buyer’s
expectations. If the performance falls short of the expectations, the customer is dissatisfied. If
the performance matches the expectations, the customer is satisfied. If the performance
exceeds expectations the customer is highly satisfied or delighted. A company would be wise
to measure customer satisfaction regularly because one key to customer retention is customer
satisfaction. A highly satisfied customer generally stays loyal longer, buys more as the
company introduces new products and upgrades existing products, talks favorably about the
company and its products, pays less attention to competing brands and is less sensitive to
price, offers product or service ideas to the company, and costs less to serve than new
customers because transactions are routine. When customers rate their satisfaction with an
element of the company’s performance say delivery. It could mean early delivery, on-time
delivery, order completeness, and so on. The company must also realize that two customers
can report being “highly satisfied” for different reasons. One may be easily satisfied most of
the time and the other might be hard to please but was pleased on this occasion. A number of
methods exist to measure customer satisfaction. Periodic surveys can track customer
satisfaction directly. Respondents can also be asked additional questions to measure
Department of Management Sciences (PUMBA) Page 8
repurchase intention and the likelihood or willingness to recommend the company and brand
to others. Companies that do achieve high customer satisfaction ratings make sure their target
market knows it. For customer centered companies, customer satisfaction is both a goal and a
marketing tool. Although the customer-centered firm seeks to create high customer
satisfaction, that is not its ultimate goal. If the company increases customer satisfaction by
lowering its price or increasing its services, the result may be lower profits. The company
might be able to increase its profitability by means other than increased satisfaction (for
example, by improving manufacturing processes or investing more on R&D). Also, the
company has many stakeholders, including employees, dealers, suppliers and stock holders.
Spending more to increase customer satisfaction might divert funds from increasing the
satisfaction of other “partners”. Ultimately, the company must operate on the philosophy that
it is trying to deliver a high level of customer satisfaction subject to delivering acceptable
levels of satisfaction to the other stakeholders, given its total resources.
Department of Management Sciences (PUMBA) Page 9
AUTOMOBILE INDUSTRY
The automobile industry is one of the biggest industries in the world. Being a major
revenue and job generating sector it drives the economies of some of the superpowers of the
world. In India the automobile industry has grown by leaps and bounds since the advent of
the liberalization era the automobile industry and especially the three wheeler segment has
grown by leaps and bounds. The liberalization has done away with primitive and prohibitive
practices of licensing and restricted foreign investment have been done away with. The result
of which was the entry of foreign players into the Indian market.
India is emerging as a source of high value and advanced quality engineering products
and services for multinational companies. India is set to emerge not only as a large domestic
market for automotive manufacturers, but also as a crucial link in the global automotive
chain. Among other industries, the automotive industry in India is understood to be the most
dynamic. It has been experiencing strong growth rates after de-licensing of the industry in
1991, when major economic reforms took place in India.
The Indian auto industry has the potential to emerge as one of the largest in the world.
Some remarkable milestones of the Indian automobile industry…..
• The largest manufacturer and second largest market of two-wheeler in the world
• The largest three-wheeler market in the world.
• The fourth-largest commercial vehicle market in the world.
The post 90s era was the era of liberalization and weakening of restrictive measures.
The government went on an overdrive to support the industry and all FDI regulations and
licensing was abolished. 100% FDI was allowed in the automobile industry and the excise
duty was also considerably reduced to its current level of 10% on three wheelers. These
factors combined with the rising fuel prices, the increasing dispensable incomes of
households, easy access to finance, etc. have led to three wheeler industry becoming the
backbone of the automobile industry in India.
Department of Management Sciences (PUMBA) Page 10
Figure 1: Overview of industry
THREE WHEELERS INDUSTRY
The three wheelers have successfully helped to overcome the dearth of jobs in the
country. Numerous people could be seen driving auto-rickshaws on the roads of cities like
Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and many more. Due to their simple
construction and limited amount of investment the three wheelers as a mode of conveyance
and commercial mechanism has gained popularity. What's more, their maintenance is also
quite simple. Bajaj Auto has dominated the three wheeler market in the country for years.
Several other companies like Piaggio Vehicles and Mahindra & Mahindra have made a late
foray into this field. An overview of the current automobile market indicates that the
tremendous demand of three wheelers in India and abroad has also allured several other
automobile manufacturers like Honda India and TVS Motor to start producing the three
wheelers.
India is the largest three wheelers market in the world. Three-wheelers are light
vehicles also known as auto-rickshaws that are mostly used as small taxis, pick-up vans and
delivery vans for short distances in India. They are driven by two stroke or four stroke
engines on petrol, CNG or Liquefied Petroleum Gas (LPG). There are few manufacturers of
this type of vehicle, but the three-wheeler segment has witnessed strong growth rates of 9 per
cent CAGR over the past decade.
Department of Management Sciences (PUMBA) Page 11
The three wheeler industry in India forms a smaller chunk of the automobiles
produced in India. According to Society of Indian Automobile Manufacturers (SIAM)
statistics for the year 2008 – 2009, three wheelers comprise around 4% of market share
among the vehicles produced in India.
Table 1: Category wise Production percentage
The sales volume clearly highlights this market share….
Figure 2: Category wise annual sales volume
Three-wheeler sales in India touched a new record of 0.4 million in 2006–07. The
launch of four-wheel, sub-1-tonne vehicles has resulted in a segmental shift from three-
wheelers. The proportion of three-wheeler goods carriers in overall sales has doubled,
indicating the increased need for a low-cost, last mile transportation system. The less-than-
3.5 tonne segment in goods accounted for 82 per cent of sales and the less-than-four seater
segment in passenger versions accounted for 97 per cent of sales.
Department of Management Sciences (PUMBA) Page 12
The production share of three wheelers is quite similar to the market share. The three
wheeler industry comprises around 74% of the total automobiles produced in India. The
SIAM data for the year 2008-09 states that 8,418,626 three wheelers were produced during
the year against a total of 11,175,479vehicles produced during the year.
Figure 3: Category wise production trend
In the past year the sales of the automobile segment has taken a setback and the three
wheeler segment has not proved to be any exception. The three wheeler segment has suffered
a setback of over 5% during the past fiscal year but there have been signs of recovery in the
current year.
Figure 4: Three wheelers sales data
Department of Management Sciences (PUMBA) Page 13
The three wheelers market is dominated by passenger carriers. The replacement of
four wheelers in the 1.5 tone category, have made severe impact on goods carrier category.
Figure 5: Usage wise market of three wheelers
The export of automobiles from India has been constantly growing and with the
slowdown in the domestic market, the major companies are focusing on exporting much more
to increase their profit margins.
COMPETITORS
The three wheelers market is been dominated by Bajaj Auto and Piaggio Vehicles.
Figure 6: Market share of three wheelers
Department of Management Sciences (PUMBA) Page 14
Bajaj Auto Ltd.
Bajaj Auto Ltd. is one among India's top ten companies in terms of market
capitalization and among the top five in terms of annual turnover. Established in 1945 Bajaj
Auto Ltd was incorporated as a trading company. Till 1959, they imported scooters and three-
wheelers from Italy and sold them in India. The company got a production license in the year
1959 and fastened a technical collaboration with Italian PIAGGIO in 1960.
The company started producing scooters in the year 1961 and followed three-wheelers
production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their
scooters and three-wheelers are being sold with the brand name “BAJAJ”.
Today, the company has become a market leader with annual production in excess of
1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has
started offering products in all segments (mopeds, scooters, motorcycles, three wheelers).
TVS Motor Ltd.
The company has been known for its ruggedness and reliability. TVS Motor is a
leading and trusted two wheeler company. TVS Motor has continually worked on innovation
of the all segment along with three wheelers range. In all, team TVS has triumphed each and
every race and rally in the country from the road to racetrack, with each of the TVS bikes
being a winner. And each time the 'Team TVS' has won on the track or off it; our customers
have secured a better product for their personal transportation.