INDEX

S.No:
1.

CONTENTS
INTRODUCTION
Scope of the Study Objectives of the Study Methodology of the Study Limitations of the Study

PAGE NO.
1-7

2. 3. 4. 5.

REVIEW OF LITERATURE INDUSTRY PROFILE COMPANY PROFILE DATA ANALYSIS AND INTERPRETATION

8-23 24-31 32-42

43-62 63-64 65-66 67-69 70-70

6.

FINDINGS & SUGGESTION CONCLUSION QUESTIONNAIRE BIBLIOGRAPHY

7.

8.
9.

CHAPTER-1

INTRODUCTION Marketing is the art of creating, satisfying customers by meeting the needs of customers and by creating value satisfaction for them. As Peter Drucker says the essence of marketing is that the entire business has to be seen from the point given of the customer. However, customers face a vast array of product and brand choices prices, supplies and to understand the needs and preferences of the customers it becomes imperative for us to carry out research together information. We believe that customers estimate which offer will deliver the most value to them and which will deliver and maximize value, within the bounds of research costs and limited knowledge, mobility, and income they form an expectation of value and act on it. Whether or not the offer lives up to the value expectation affects both purchase and repurchase probability. The purpose of any Marketing research is to provide information at a specific time on customer, trade, competition and the future brands, so as to enable marketers to formulate successful strategies in their quest for customers mind share and market share. The research helps the marketers to find out the attributes and variable that influence the customers behaviour towards a given product offering and it shapes the attitudes of the customers favorably towards a specific product, thus by analyzing these undertones the researcher can find out the levels of customer satisfaction, and the results of the marketing research can help the marketers to analyse the weak spots in their marketing strategies and can reformulate their strategies so that they can satisfy their customers and maximize their brand loyalty and profitability.

NEED AND IMPORTANCE OF THE STUDY From the days of industrial revolution when goods & services were produced to the present day, the emphasis has shifted from the producers to the consumer and his needs, and with the consumer becoming more involved, in the marketing process there is greater need for information regarding the consumer needs. Preferences and making them satisfied of the motor & services, has led to a constant but increasing need to conduct marketing research. This research is an insight into the mind of the consumer, with the help of which the organizations will become aware of their pitfalls and in turn can also make improvements in the product regarding the level of satisfaction of the consumers towards their offerings in the market place. The Telecom industry is highly competitive in nature and due to rapid advancements in the field of technology. Land line phones have become redundant and the shift is clearly towards cellular services. As such there has been a greater need to conduct market research studies. Since no risks can be entertained with regard to the satisfaction of the people. Hence the need to constantly monitor the changing preferences, attitudes of the consumers becomes that much more necessary. The basic need of this project is to know theSatisfaction amongst the respondents, with regard to VARUN services and its motor.

SCOPE OF THE STUDY The scope of project work is to get the opinions from respondents on the issues mentioned earlier. It is limited to the twin cities of Hyderabad and is confined to the urban areas as the respondents are the subscribers of VARUN services is one form or the other.

RESEARCH OBJECTIVES 1) 2) To study the Customer Satisfaction amongst the users of VARUN motor. To study the Satisfaction level of VARUN customers with regard to other motor and services offered by VARUN. 3) To make suggestions for improvement of their motor & their services from the customers point of view based on this research to fulfill customers needs. 4) To know the customers feed back towards the redressed of grievances by VARUN. 5) To ascertain the role of media in promoting and creating awareness towards the diversified portfolio of VARUN motor.

RESEARCH METHODOLOGY Research in common pursuance refers to a search for knowledge in a scientific and systematic way for pursuant information on a specified topic. Once the objective is identified that next step is to collect the data which is relevance to the problem identified and analyze the collected data in order to find out the hidden reasons for the problem. There are two types of data namely. 1. Primary Data 2. Secondary Data 1. PRIMARY DATA Primary data is to be collected by the concerned project researcher with relevance to his problem. So the primary data is original in nature and is collected first hand. Collection of primary data There are several methods of collecting primary data particularly in surveys and descriptive researches. Important ones are as follows: 1. Observation Method 2. Interview Method 3. Questionnaire 4. Schedules and 5. Other methods which include Warranty needs Distributor audits Pantry audits Consumer panels Using mechanical devices Through projective techniques

In depth interviews and

1)

OBSERVATION METHOD: It is the most commonly used methods especially in studies relating to behavioral

sciences. This method implies the collection of information by way of investigators own observation, without interviewing the respondents. The information obtained relates to what is currently happening and is not complicated by either the past behavior or future intentions or attitudes of respondents. 2) INTERVIEW METHOD The interview method of collecting data involves presentation of oral, verbal stimuli and reply in terms of oral-verbal responses. This method can be used through personal interview and, if possible, through telephone interview. Personal Interview The method of collecting information through personal interview is usually carried out in a structured way. As such we call this interview as structured interviews. Such interviews involve the use of a set of predetermined questions and of highly standardized techniques of recording. Thus, the interviewer in a structured interview follows a rigid procedure laid down, asking questions in a given format and the order prescribed. As against it, the unstructured interviews are characterized by flexibility of approach to questioning. Unstructured interviews do not follow a system of predetermined questions and standardized techniques of recording information.

3)

QUESTIONNAIRE The researcher and the respondents do come in contact with each other if this

method of survey is adopted. Questionnaires are mailed to the respondents with a request to return after completing the same. It is the most extensively used method in various economic and business surveys & research. Questionnaire to be used must be prepared very carefully so that it may prove to be effective in collecting the relevant information. Structured questionnaire Using structured questionnaire method, which contains close-ended questions, collected the primary data with respect the problem chosen. The questions have some

options, from which the respondents have to choose a choice. As the answers lie within a specified range they are called close-ended questions. Open-ended questions are those questions where no choices are given to respondents and respondents are free to express their choice or answer. The following sampling method was used. Sampling: A non-probability conclusive sampling method was used in the study for data collection. Sample size: The sample was taken from the universe on random sampling basis in Hyderabad. The sample size designed for this project is 100 keeping in mind the paucity of time and also the customer base of the organization in the research area.

Research Methodology A structured questionnaire was prepared and presented to the respondents and related questions were asked. Questionnaires mainly contained close-ended questions and a few open ended questions, to identify the reasons for customers satisfaction & their dissatisfaction. Secondary data It is the data already existing, which has gone through some standard analysis. Under the secondary data, the companys annual reports, brouchers, pamphlets, newspapers, journals and internet were taken into consideration.

LIMITATION OF THE STUDY 1) The present research is restricted to the twin cities of Hyderabad city only. 2) The sample size taken is only 100 and as such is very small as compared to the universe, this is due to the constraints of time and effort, and as such may not be enough to generalize to the entire population, however it is presumed that the sample represents the universe. 3) Respondents might have responded with the actual feelings of facts while giving responses to the questionnaire. 4) Time being a limiting factor was not sufficient to gather opinions from majority of the respondents, who form part of the universal sample. 5) While every care as been taken to eliminate perceptual bias from the side of the researcher and the respondents however certain element of bias might have set in to the research inadverantly. 6) Since this study concentrated on customer satisfaction towards VARUN no attempt was made to study other activities of the organization. Such as finance, human resource management etc.,

REVIEW OF LITERATURE

Customer Satisfaction
Definition of Customer Satisfaction

Kotler (1997) defines customer satisfaction as follows:

Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a Products perceived performance (or outcome) in relation to his or her expectations.

Brown (1992) defines customer satisfaction as:

The state in which customer needs, wants and expectations throughout the product or service's life are met or exceeded resulting in repeat purchase, loyalty and favorable worth-of mouth.

According to Jones and Sasser (1995), four basic elements affect customer satisfaction.

They are: The basic elements of the product or service, basic support services, a recovery process for counteracting bad experiences, and extraordinary service. There are many definitions of the key elements of the services, but this one is considered appropriate in the context of care or after sales services.

Satisfaction is a function of perceived performance and expectation. If the performance matches the expectations the customer is satisfied. If the performance exceeds the expectation the customer is highly satisfied and delighted. If the performance does not match the expectations the customer is dissatisfied. Satisfaction is a persons feelings of pleasure of disappointment resulting for comparing a motor perceived performance (outcome) in relation t his/her expectation. The link between customer satisfaction and customer loyalty is proportional. Suppose customer satisfaction is rated on a scale from 1 5. At a very low levels of customer satisfaction. .Level-1, customers are likely to abandon. Level-2 to 4, customers are fairly satisfied but still find tit easy to switch when a better offer comes along. Level-5, the customer is very likely to repurchase an even spread good word of mouth about the company.

Customers are very likely to repurchase

LEVEL5

Customers are fairly satisfied

LEVEL 2-4

Low level of customer satisfaction

LEVEL 1

The key to generating high customer loyalty is to deliver high customer value. A companys value proposition is much more than its positioning on a single attribute. Most of the successful companies are raising expectations and delivering performances to 10

match. These companies are aiming for TCS Total Customer Satisfaction. Customer satisfaction is both a goal and a marketing tool. Companies that achieve high customer satisfaction ratings make sure that their target market is known.

After sales support management system is apart of ERP Enterprise Resource Planning solution dealing with the support module after the sales of product. It creates an advanced environment to the organization, which are in to technical support after sales e.g. Companies offering electronic goods and motor vehicles etc.

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Measuring customer satisfaction Organizations need to retain existing customers while targeting non-customers;. Measuring customer satisfaction provides an indication of how successful the organization is at providing motor and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other motor against which the customer can compare the organization's motor. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement in terms of their perception and expectation of performance of the service being measured. Methodologies American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, research has shown that ACSI data predicts stock market performance, both for market indices and 12

for individually traded companies. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc.applies the methodology of the ACSI offline, and Foresee Results applies the ACSI to websites and other online initiatives. ASCI scores have also been calculated by independent researchers, for example, for the mobile phones sector. The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model. SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to indicate the gap between customer expectations and experience. J.D. Power and Associates provides another measure of customer satisfaction, known for its top-box approach and automotive industry rankings. J.D. Power and Associates' marketing research consists primarily of consumer surveys and is publicly known for the value of its product awards. Other research and consulting firms have customer satisfaction solutions as well. These include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages of Excellence framework and which helps define a companys status against eight critically identified dimensions.

13

For Business to Business (B2B) surveys there is the InfoQuest box. This has been used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average response rate of 72.74%. The box is targeted at "the most important" customers and avoids the need for a blanket survey.

Improving Customer Satisfaction Published standards exist to help organizations develop their current levels of customer satisfaction. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme.

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TICSS focuses an organizations attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty.

The functional features include: Customer complaints tracking Service engineers information tracking Job scheduling for the complaints Spares management Online support Reports

Customer complaints tracking

Complaint is the start point of any technical support system. With out a client request the technical support is not initiated. Complaint tracking is done as follows: Client may come down or make a phone call or complaint online The client is validated. The client may have an annual maintenance contract or may have a product in warranty or of warranty. The intensity of the complaint is to be estimated to allocate resources.

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 Expected service type has to be finalized. It may be online assistance indoor or onsite assistance.

Service Engineers information tracking: Information about the engineers is inevitable in job scheduling. Information about the engineers has to be added, deleted or modified in the database. It may contain the following: the name, id of the engineer; the skill set of the manager; the status of the engineer.

Job scheduling for the complaints:

Job scheduling means sequencing the request to its intensity, assignment of a service engineer and creating a job card. It is done to optimize the technical resources and to render the best service to the customer. Minor problem are processed by technicians requests are handled by the expert team.

The job card includes the following:

The compliant id, the assigned engineer id, the data and time of service, the spare details, no. of man hours required etc. The spare part name and serial number The available quantity of each spare part The prize, warranty and other specifications The supplier information.

Online support: The service is done online also. The client may visit the website to obtain basic support information about the product and FAQ. He can chat with the service engineer on phone or online.

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Report:
The report reflects the current status of the system. The reports that can be generated are as follows: Customer request report status of the system. The reports that can be requests. Service engineer report provides the information about the skills and strengths of the support team. Job scheduling report states the allotment of engineers to jobs. Spares report discloses the availability of all the shapes in the system. Receipts and payments report gives information about the cash flow in the system. Bills generation. Customer satisfaction tracking:

Customer satisfaction is the key concept to dictate the future of the organization. In order to maximize the customer satisfaction along with quick response and efficient service some other activities are to be performed.

They may be as follows: Reception of the customer with hospitality. Entertaining environment to the customer. Providing guidance about the usage and maintenance of the product. Offering gift and discounts.

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Operationalisation of Customer Satisfaction

As customer needs and expectations are changing all the time, this will lead to a situation whereby customers keep setting ever higher standards, and therefore to achieve perfection is impossible. Markets should be seen as a group of individual companies, and each of them must be treated individually with different requirements, experiences, commitments, and relationships. Implementing customer satisfaction philosophy means identifying customers, then identifying their needs and expectations and finally, measuring their perceptions. Knowing the needs of the customer makes it easier to anticipate the ideal set of motor and services. A major flaw for all the companies has proved to be their inability to understand other ways that customers can be satisfied. By

18

implementing direct and continuous employee contacts with the customers, the customers' requirements and expectations can be determined. This employee-customer connection additionally conveys the message that the company cares about their customers.

Customer needs can be determined through marketing research, customer interviews, reading customer concerns, or involving customers in the design of services and service deliveries. In order to decide if the service can be provided at a profit, it is necessary to link value equation to the strategic service vision. Working together with both supplier and customer can increase profitability by expanding margin potential.

A customer satisfaction study should begin by asking about the factors affecting customer satisfaction, how important those factors are for the whole, and the level of customer satisfaction. A problem with customer satisfaction surveys (Naumann, 1994) is that a poor customer satisfaction programme yields vague data and raises customer expectations. If customer expectations are raised and a company's performance remains the same, the customer's overall satisfaction will decrease.

Business Definition for: After-sales Service

Customer support following the purchase of a product or service. In some cases, after-sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint, speed of response, and action taken.

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After Sales Excellence After Sales Excellence is a key driver for customer satisfaction and loyalty but also a very important source of revenues and profits throughout a vehicle lifecycle. Our after sales experts support our clients in all relevant areas of after sales service to improve the internal cost base, the retail attractiveness as well as customer satisfaction. Our results are measurable - significant improvements on key indicators such as warranty costs, service quality, and fixed first visit rate. Supply Chain Excellence Our Supply Chain Excellence service enables you to realize substantial improvements in your supply chain performance in terms of cost, efficiency, lead times, demand management, customer service and working capital requirements. We measure, improve and qualify supply chain organizations and processes and support our clients by identifying and rapidly implementing cost and efficiency savings in the entire supply chain. This can be achieved with the comprehensive, cross-functional redesign of all logistics processes leveraging the entire supply chain including customers and suppliers. With our proven Integrated Supply Chain Excellence Audit we quickly identify gaps to proven best practices and benchmarks within, and beyond, the Automotive Industry. Value Chain Design Constantly reviewing the companies value chain in a rapidly evolving environment; deriving required core competencies and partnerships is a key management responsibility. We help our clients design their value chain in terms of a global engineering footprint, production and service network, thereby improving efficiency and customer satisfaction in alignment with corporate strategy.

Customer Contacts and Relationships

In all cases, the supplier had been involved with the customer since the beginning of the network building. It is difficult to distinguish whether some of the changes in customer-supplier relationship were due to the duration of the relationship between the

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two parties and whether some of the changes were caused by changes in the customer's needs resulting from the customer's new position in the network life cycle curve. For the results of this research, that question in terms of the underlying factors has not addressed, but for future studies, it would be relevant to clarify which of these two factors is the more significant or in fact, whether they can be distinguished.

Relation of the Care to Customer Satisfaction

Innis and La Londe (1994) discovered that several customer satisfaction variables significantly affect a customer's total customer satisfaction. Customer service attributes received high ratings for the importance of customer satisfaction. Attributes for physical distribution of customer service were rated higher than many marketing attributes.

Most Important Services

Barsky (1995) proposed that what is important for one customer may not be important for another. Barsky proposes this in the area of priority marketing, and the idea was applied to different services in general. When a buyer considers closer integration with a supplier, they may consider that it will most likely limit the number of potential suppliers and fear that the partner may take advantage of this by increasing prices or delivering poorer quality or poorer service. Interlocking with the supplier can limit the opportunity to acquire innovations if the supplier lacks the capability of being a leadingedge supplier. Research has shown that there are frequently differences between the views of the supplier's management on customer value and the customers' views on what they say they value. This was studied in the present study as well.

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Customer Satisfaction is supreme in business. It focuses on how to satisfy people who are using our product or services. Delivering great customer satisfaction is no accident. Its the result of skilled planning and exceptional management practices. At any help desk; customer satisfaction is a key indicator of success. Theoretical over view on customer satisfaction Satisfaction in persons feelings of pleasure of disappointment resulting from comparing a products perceived performance (out come) in relation to his or her expectations. Customer perceived value Our premise is that customers will buy from the firm that they see as offering the highest perceived value. Customer perceived value (CPV) is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Total customer Value is the perceived monetary value of the bundle of economic, functional and psychological benefits customers expect from a given market offering. Total Customer Cost is the bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the given market offering. Total Customer Satisfaction Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectations. In general, satisfaction is a persons feelings of pleasure of disappointment resulting from comparing a product perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of

22

expectorations, the customer is dissatisfied. It is the performance matches the expectations, the customer is satisfied. If the performance exceeds the expectations, the customer is highly satisfied or delighted.

Measuring Satisfaction Although the customer centered firm seeks to create high customer satisfaction, that is no its main goal. If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. Even bad-mouth it. At levels two or four, customers are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is very likely to repurchase and even spread good work of mouth about the company. High satisfaction or delight creates an emotional bond with brand or company. High satisfaction or delight creates an emotional bond with the brand or company, not just a rational preference. Customer expectations From past buying experience, friends and associates advice, and marketers and competitors information and promises. If marketers raise expectations too high, the buyer is likely to be disappointed. However, if the company sets expectations too low, it wont attract enough buyers (although it will satisfy those who do buy).

Delivering high customer value

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The key to generating high customer loyalty is to deliver high customer value. According to Micheal planning, in his delivering profitable value, a company must design a competitively supervalue proposition aimed at a specific market segment, backed by a superior value-delivery system. The value proposition consists of the whole cluster of benefits the company promises to deliver, it is more than the core positioning of the offering.

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INDUSTRY PROFILE

COMPANY PROFILE

Founder and Managing Director, Mr. V. Prabhu Kishore holds a three decade Automobile experience in 'S'elling, 'S'ervicing and retailing 'S'pare parts of 2 wheelers, 3 wheelers and 4 wheelers of top OEM's in India.

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The start of automobile business for Mr. Prabhu Kishore began with Padmaja Commercial Corporation, his family business in 1970's. In 1992, Mr. Kishore established his own undertaking VARUN MOTORS withBajaj Auto dealership at Visakhapatnam in 1992. This dealership had marked the birth of the Varun group. Varun later ventured into 4 wheeler business with Maruti dealership at Visakhapatnam in 1996 and at Hyderabad in 1998. Soon after, Varun Motors also started its Bajaj dealership at Vijayawada in 1999.With its aggressive expansion, Varun Motors was soon referred to as the Varun Group. Varun has a construction company Varsha Builders Pvt.Ltd through which it builds its own showrooms and workshops. Varun has also engaged in various other diverse businesses such as Varun Leasing, Varun Finance, Lakshmi Finance and Communications. Varun today supports over 2500 families and boasts of extensive neFOURrk of showrooms, workshops, office buildings and residential apartments. The management practices at Varun complements the pursuit of perfection. The speed of adaptation to change and commitment to growth largely boosted the operational efficiency of the organisation. Varun's Zero Defect approach that has driven it to upgrade its operating systems continuously earned it the 180 certification and No.1 position in the market. Behind the success of Varun Group lies the saga of team work, aggressive marketing, dedication, discipline, higher levels of

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sensitivity towards customers and excellent HR practices. Varun's immense focus on service and customer care blitzes the competition whilst its showrooms and workshops are also top notch. For example, Varun's Maruti showroom in Visakhapatnam is the largest showroom in India whilst Varun's workshops are equipped with up to date technology, modern inventory and world class facilities. Our Maruti dealership at Vijayawada is in an outstanding 3S facility. Awards Our practices and performance have made us the largest automobile dealer in A.P and one of the top dealers for Bajaj and Maruti in the country. Below are few of our dealership achievements at the national level. Varun Motors was awarded Maruti PLATINUM thrice consecutively for the past 3 years in Balanced Scorecard ( Platinum award is the highest rated award in Maruti). Adjudged India 's No.1 Maruti dealer in Balanced Scorecard in 2003-2004. Our very successful best practices like Customer Education Meet, Exclusive Test Drive Team and few other HR practices have been adopted by other dealerships across the nation.Committed customer service got us the ISO 9001-2000 Certification. Some Of Other Strategies: At Varun, the management interacts directly with customers, and communication is seen across all levels of management.We keep enough

27

stock for customers to touch, feel and see. Many innovative and flexible finance schemes are tailor made to make the motor easily available to all segments of customers. This is the main reason for highest sales in our outlets and has also raised the affordability levels of customers.We focus more on service than mere sales because we believe in getting back what we sow, and even more. Varun's philosophy of serving the customer at his door step is the main reason behind its expansion plan of workshopsAs the Indian economy is a 60% agricultural economy, emphasis is given to rural marketing, mobile showrooms and rural service centres with spares parts back up. Varun also has driving schools.All services are under one roof, for ex: RTA, Insurance, extended warranty, accessories, exchange and true value departments. Varun Group- Service Statistics: We are currently servicing 18,000 Bajaj's range of 2- wheeler and 3wheeler vehicles per month and 5700 Maruti cars per month. Varun Motors has serviced 10, 00,000 Bajaj vehicles and 2, 00,000 Maruti cars till date. Models Maruti introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the

28

ideal combination of power and performance from his car. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become even more pleasurable to drive.

Our practices and performance have made us the largest automobile dealer in A.P and one of the top dealers for Bajaj and Maruti in the country. Below are few of our dealership achievements at the national level. Varun Motors was awarded Maruti PLATINUM thrice consecutively for the past 3 years in Balanced Scorecard ( Platinum award is the highest rated award in Maruti). Adjudged India 's No.1 Maruti dealer in Balanced Scorecard in 2003-2004. Our very successful best practices like Customer Education Meet, Exclusive Test Drive Team and few other HR practices have been adopted by other dealerships across the nation.Committed customer service got us the ISO 9001-2000 Certification.

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Some Of Other Strategies: At Varun, the management interacts directly with customers, and communication is seen across all levels of management.We keep enough stock for customers to touch, feel and see. Many innovative and flexible finance schemes are tailor made to make the motor easily available to all segments of customers. This is the main reason for highest sales in our outlets and has also raised the affordability levels of customers.We focus more on service than mere sales because we believe in getting back what we sow, and even more. Varun's philosophy of serving the customer at his door step is the main reason behind its expansion plan of workshopsAs the Indian economy is a 60% agricultural economy, emphasis is given to rural marketing, mobile showrooms and rural service centres with spares parts back up. Varun also has driving schools.All services are under one roof, for ex: RTA, Insurance, extended warranty, accessories, exchange and true value departments. Varun Group- Service Statistics: We are currently servicing 18,000 Bajaj's range of 2- wheeler and 3wheeler vehicles per month and 5700 Maruti cars per month. Varun Motors has serviced 10, 00,000 Bajaj vehicles and 2, 00,000 Maruti cars till date. Models Maruti introduced the superior 16 * 4 Hypertech engines across the entire

30

Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become even more pleasurable to drive.

Car Loans The country's largest bank and the largest car maker have joined hands to make affordable car finance available to more and more people across the country.

The mega alliance makes car loans available at lower interest rates to a wider section of people, with transparent terms and

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conditions. It is supported by the unmatched combined neFOURrk of SBI branches and Maruti outlets. The Unbeatable Advantages of SBI-Maruti Car Loans

FOUR market leaders in their respective industries with trusted brand names.

Lowest interest rates No processing fees or hidden costs to ensure transparency

Car loans available for diverse categories of customers including government employees and agriculturists

More loan amount available as it is extended on the basis of the car's on-road price, not ex showroom price.

Longer loan repayment period -- upto seven years

We Varun Motors value our customers' comments and we at Varun Motors Provide quality service to all our customers. We do that by giving our customers all the undivided atention they desire. But we believe you can always help us improve your experience with us. We would like to hear anything you might have to sVarun Motor's road to success is bound by various factors such as market demand, customers, quality motor, service, human resources etc. While each factor plays a pivotal role in shaping and strengthening the organisation, we consider

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Human Resources to be a central aspect in every activity today as it helps gauge outcomes and organisational performance. Thus, we believe that staff should be well trained, well motivated and most importantly well taken care of in order to contribute efficiently to Varun. Varun will make every effort to make you feel comfortable, happy and content. Your well being is most important to us and hence we aim to look after you as far as possible. Work at Varun not only aims at the company's growth, but also guarantees your own personality development and growth. With fierce and disruptive competition today, we emphasise on achieving targets on time, ability to complete huge amounts of work in a short time when required and focussing on details whilst still seeing the bigger picture. We provide extensive training and analyse each employee's

performance at regular intervals. Good rewards for performance and other benefits such as Bonuses or Ince ntives create a challenging, motivating and intriguing work atmosphere at Varun. Work environment ought to be healthy, yet tough for better results and hence Varun constantly strives to strike a balance between the FOUR. Varun is known for its best HR practices and highest retention rate of employees. It is our human resources that creates the competitive edge and hence it our duty to keep our staff happy. We regularly send staff on company sponsored trips. We also provide housing and genuine health care facilities to staff. There have been cases where the company

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spent huge amounts of money on serious medical and emergency cases. We are like family to you and therefore will go beyond our policies when needed. Should you have any problems you might want to discuss with us, please do not hesitate to call on us. We are here for you. We ensure 24 hour availability of our CEO at all times to all our employees. We encourage employees to be creative, and use discretion whenever required. Delegation of powers and Empowerment of staff is a key ingredient to our good human resource management practices. We also provide subsidised lunch to staff. At Varun, all employees from floor workers to the Managing Director follow the same uniform dress code in order to create a sense of equality, discipline and belongingness to the company. We hold regular staff meetings and occasionally arrange picnics and dinners for staff over weekends. Varun primarily focuses on Discipline, Hardwork, Empowerment and Performance. We emphasize on a disciplined conduct right from Wearing uniform, shaving, polishing shoe, wearing a helmet while driving a 2 wheeler, coming on time and attendance, to, meeting various demands of the job such as clarity in communication, interpersonal relationships, inquisitiveness, understanding organisational

requirements and steering ahead wit team work. We like our staff to be friendly, honest, pleasing and simple. We welcome new ideas, and instil staff to be innovative. We advise staff to observe and grasp good virtues from every person, be it a co-employee

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or a customer. After all, none of us possess a package of the best qualities!.Have a good interview. We look forward to working with you.

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COMPANY PROFILE

DATAANALYSIS & INTERPRETATION

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Analysis and findings The total number of respondents of the survey is 100 from Hyderabad city only. The main aim of the survey is to know the satisfaction level of the VARUN Services. The data collected is through primary source, through interviewing the concerned respondents by giving them a structured questionnaire, which includes few open-ended questions. 1) How did you come to know about VARUN motor?

No. of respondents Electronic media Print media Road shows Hoardings Total 22 28 20 30 100

Percentage 22% 28% 20% 30% 100%

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Knowing about the product:

22% 30% Electronic media Print media Road shows Hoardings 28% 20%

Interpretation: 30% of the respondents came to know about VARUN motor from hoardings while 28% of the respondents came to know from print media and electronic media was assumed by 22% of the respondents. A small significant 20% of the respondents replied that road shows have helped them in understanding VARUN motor.

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2) Since how many months have you been using this service?

No. of respondents 0-6 months 6-12 months 1-2 years More than 2 years Total 23 37 36 04 100

Percentage 23% 37% 36% 04% 100%

Using of the service (in months):

4% 23%

36%

0-6 months 6-12 months 1-2 years More than 2 years

37%

Interpretation:

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From the above table it is seen that 37% of the respondents have been using VARUN motor for past one year. While 36% have been using it for more than 1 year, and a significant 23% of respondents have been using the service for less than six months. Only 4% of the respondents have been using VARUN motor for more than 2 years.

4) What is the reason for choosing this service?

No. of respondents Less price Quality service Brand image Total 20 56 24 100

Percentage 20% 56% 24% 100%

Reason for choosing the service:

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24%

20% Less price Quality service Brand image 56%

Interpretation From the above table it is shown that 56% of the respondents are citing quality of service as the factor. While 24% cited brand image as the reason for choosing the service. As far as price is concerned only 20% of the respondents have quoted it as the reason for choosing this service.

5) Why do you prefer for this service? No. of respondents Convenience Economical Security Features Total Preferring for this service: 53 30 04 13 100 Percentage 53% 30% 04% 13% 100%

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13% 4% Convenience Economical 53% 30% Security Features

Interpretation In todays busy world convenience seems to be the most overriding factor while preferring a cellular service. It is clear that 53% of the respondents have preferred this service due to easy & hands free availability, making it convenient to use it. On the other hand 30% have said economy of the service, while 13% of the respondents have given features as their choice. While a meager 4% of the said security as the reason for preferring the service.

6)

Are you satisfied with the quality of service being provided? No. of respondents Yes No To some extent Cant say 85 5 0 10 Percentage 85% 5% 0% 10%

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Total

100

100%

Satisfaction l with the quality of service:

10% 0% 5% Yes No To some extent Cant say

85%

Interpretation: From the above table it is clear that 85% of the respondents are satisfied with the quality of service while a significant number i.e., 10% of the respondents couldnt say anything and 5% of the respondents replied they are not satisfied with the quality of service.

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8) While buying VARUN product that has influenced your purchase decision? No. of respondents Colleagues Friends Family members Others Total 25 60 15 0 100 Percentage 25% 60% 15% 0% 100%

Influence on purchase decision:

15%

0% 25%

Colleagues Friends Family members Others

60%

Interpretation: From the above table it is shown that 60% of the respondents were influenced by their friends, 25% by their colleagues and 15% by others.

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6)

Where do you pay your bills?

Periods At showrooms Dont know exactly Total

No. of respondents 100 00 100

percentage 100% 00% 100%

Place of paying Bills:

120 100 100 80 60 40 20 0 0 1 2 100% 0% At showrooms Dont know exactly

Interpretation: It is clear from the above analysis that the respondents have to pay their post paid bills at the True-Paid shops only. So 100% of the respondents pay at their dealer outlets only.

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1) How do you feel about the pricing of VARUN services as compared with other?

No. Of respondents Expensive Competitive Cant say Total 00 96 04 100

Percentage 00% 96% 04% 100%

Pricing of VARUN indicim services:

120 100 80 Expensive 60 40 20 0 0 1 4 Competitive Cant say 96

Interpretation: The feelings of customers of VARUN about the pricing of the services is, 96% of them are satisfied and feel the prices are comparable with others and 4% of them are not satisfied with the pricing of the company as they feel the prices are not competitive enough.

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13)

Are you satisfied with the time given for the payment of your bills?

No. of respondents Yes No To some extent Total 10 00 90 100

Percentage 10% 00% 90% 100%

Satisfaction with the time given for the payment:

10% 0% Yes No To some extent 90%

Interpretation: With the above analysis, from the 100 respondents, only 10% are satisfied with the time given to them for payment of bills, and the remaining 90% of respondents are not fully satisfied.

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16)

Do you feel that the instruments being provided along with the services is ok or you want a change (as per choice)?

No. of respondents Yes, we want change No, it is OK Total 10 90 100

Percentage 10% 90% 100%

Instruments provided with service are ok or not:

10%

Yes, we want change No, it is OK

90%

Interpretation:

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From the above table it is clear that 90% of the total 100 respondents doesnt want any change in the instruments being provided by the company, they want as it is. But the remaining 10% of the respondents are willing to have change in that at some choice, in terms of certain features as compared with the competitors.

17) Do you recommend these services to your friends, Colleagues & Family?

No. of respondents Yes No Cant say Total 63 37 00 100

Percentage 63% 37% 00% 100%

Recommendation of the service:

70 60 50 40 30 20 10 0 0 Yes No Cant say 37 63

Interpretation: 49

It is clear that 63% of the respondents would recommend the service, while a significant 37% of the respondents do not want to recommend the service to their friends, colleagues & family.

18)

Do you want any additional features to be included to you service in future?

No. of respondents Yes No Total 67 23 100

Percentage 67% 23% 100%

Any additional features:

80 60 40 20 0

67

23

Yes
Interpretation:

No

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From the above table it is clear that 67% of the total respondents are desirous of having some new features like call waiting, GPRS, MMS etc., to be included in this service in future, and the remaining 23% respondents do not want any changes as far as the additional features are concerned.

FINDINGS

2. VARUN should create awareness amongst its customers regarding various services that are being offered by it by increasing its sales promotion reach.

3. Special promotional schemes to be launched especially to target youth segment who take up the new product by having special packages

4. VARUN try to focus on the after sales customer support as this is perceived to be a weak spot, by the consumes and should have responsive call centers to address the needs of its customers.

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SUGGESTIONS

. VARUN should vigorously promote its fixed line services as compared with the competition and should concentrate on individual customers and noncommercial customers.

VARUN should aggressively promote its offerings in various media and should concentrate on hoardings and road shows and electronic media.

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Conclusions

The respondents are subscribers of VARUN, and they came know about the service from hoardings, print media, primarily and through electronic media and road shows secondarily.

The respondents are using VARUN since 1 year and below 1 year in most of the cases.

The mobile service provided by VARUN is used by majority of the respondents and the reason for choosing it is the quality of the service, followed by brand image.

Customer satisfaction of the respondents towards VARUN is high; however a significant number of the respondents are dissatisfied with its services.

In purchasing VARUN motor family appear to be the prime motivators of the respondents in making their purchase decisions, due to the special offers being targeted by the company at this segment.

The respondents are paying their bills at the company show rooms, and these are also acting as customer care centers for all queries and needs of the consumers.

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ANNEXURE I QUESTIONNAIRE

Name of the respondent Age Gender Address

: : : :

Signature

1)

How do you come to know that About VARUN motor? a) b) Electronic Media Road shows b) c) Print media Hoardings

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2)

Since how many months have you been using this? a) c) 0-6 months 1-2 years b) d) 6-12 months more than 2 years

4)

What is the reason for choosing this service? a) b) Less price Brand image b) Quality service

5)

Why do you prefer this service? a) c) Convenience b) Security Economical e) Features

6)

Are you satisfied with the quality of service being provided? a) c) Yes To some extent b) d) No cant say

12)

How do you feel about the pricing of VARUN Services as compared with other? a) c) Expensive Cant say b) Competitive

along with the services is OK or you want any change? (As per your choice) a) 17) Yes, we want change b) No, it is ok

Do you recommend this service to your friends, colleagues & family? a) Yes b) No

18) Do you want any additional features to be included to your services in future?

19)

What is the reason for avoiding activation charges and disconnecting phone connection? Please____________________________________________________________ _____________________________________

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20)

What are the common problems, which you face while using this service:_____________________________________________ _____________________________________________ Thank you

BIBLIOGRAPHY

1.

MARKETING MANAGEMENT Philip Kotler

2.

PRINCIPLE OF MARKETING

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3. MARKETING MANAGEMENT 4.

Philip Kotler & Gray Armstrong

Stanton

BUSINESS RESEARCH METHODOLOGY C.R. Kothari

5.

www.VARUN.com

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