Professional Documents
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Health and happiness and success depend upon the fighting spirit of each person. The big thing is not what happens to us in life- but what we do about what happens to us. Traditionally the business of distribution was called commerce. Business was carried out merely as an exchange of commodities. But at present business is going a complete transformation and covered the concepts of marketing, target, costing, customer satisfaction, and channel of distribution, globalization and the like. No business empire was established overnight. Here we have taken the case study of Gulzar Motors Ltd. of how they transformed their traditional business and how, in turn, they achieved their aims. Trade and commerce has been recognized since times immemorial. Caveman was self sufficient and humans did not live in organized groups. With the introduction of barter system, trade and commerce began. Money was developed as a medium of exchange and later on a need of uniform currency transaction was required. Now plastic money has been introduced. Similarly, trade and methods to carry it out have substantially changed. It is no longer satisfying that a concern is operating well domestically but global trade ties are being recognized. In the present world of cut throat competition success of a business depends upon not only the price tag, but the strategies to satisfy and maintain a customer. Here we are looking forward to how Gulzar Motors Ltd. began its business and is today being recognized as a successful enterprise.
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DETERMINATION Behind any venture, whatever it is there has to be a goal or determination behind it. Planning and subsequently strategy formation will be fruitful only if there is a strong goal behind it determination depends upon the intention and thirst to achieve the goal. Gulzar Motors Ltd. was not formed overnight. It took several years of determination and hard work to reach its present state. Initially started with a petrol pump in Ludhiana and moving top Swaraj Tractors Agency, Gulzar Motors procured Maruti dealership agency in 1997 and then there was no looking back. Had there been no determination the business and people behind it could be satisfied with the petrol pump business. To expand any business you have to expand your ideas to lay down the objectives and aims of the concern. Only on the basis of these can a business formulate the plans, strategies and policies.
planning was confined to the top management o the organization and appropriate delegation was\made to the lower levels depending upon its structure.
ACHIEVEMENTS
Gulzar Motors Ltd., an ISO 9002 company was awarded best Maruti Showroom Award in 1997. With well equipped workshop, sophisticated denting and painting shop and dealer of the genuine Maruti parts, the company has maintained a satisfactory clientele. Every year around 2000 cars are sold averaging rupees three lakhs each. Maruti 800 Model I the highest in demand forming 30% of turnover followed by Zen, Alto and Wagon R. Gulzar Motors Ltd. has created its website with valuable information regarding price lists of each class and model, newsletter epic ting the latest news and trends, feedback from for remaining in contract with customers. Trade-in facility is also available under which customers have the option to exchange new car for old. As Lord Tennyson puts it, In every sphere of life the old has to make way for the new The same is true for the methods of trading also. In the absence of competition, no marketing or advertisement was required but when times changed; Gulzar Motors Ltd. changed its methods also. It is difficult to reach at the top but it is even more difficult to stay there. After a certain time period a business has to review its strategies and according make the necessary change. This is what the transformation is.
pushed into buying anything but was automatically pulled towards a product. Demand was greater than supply. There was a large urban market and the business was in boom. In Ludhiana the replacement period of the cars is short. So a continuing customer is better than a one time customer. Now with other agencies and other competitors in the market more emphasis is being laid down on the rural market which had remained unexploited over the years. Nearly 40% market had been confined to rural areas surrounding Ludhiana which is expected to rise to 50% next year and 60% in around two years.
INITIAL ADVERTISEMENT
As discussed earlier there was no marketing or advertisement due to plenty of customers and a large market share. There were no great openings and the customers base was large. The work was confined to mainly satisfying the customers and not attracting them to buy anything.
CHANGING SCENE
When the business is good it pays to advertiser, when the business is bad you have to advertise We talked about that there was no advertisement or any marketing strategy due to customer queue. But what happens when the queue disappears? Today business has to find the customer and expand the market. Growing competition, new entrants and declining market share made Gulzar Motors Ltd. move towards rural market. Gulzar Motors laid equal stress on urban
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and rural market. Advertisement was centered around print media, television and trade fares. Marketing experts were employed and separate marketing department was established and marketing budgets were laid out and every year the results were measured and compared effective and efficient control towards the cost and allocation help any business in their growth.
AREAS OF SPECIALIZATION
In a manufacturing concern can extend its product line and a desirable product mix ensures variety to customers. If all facilities are available under one roof it ensures customer attraction. Large super markets are an instance. Gulzar Motors Ltd. also realized and divided its area of operation into sales, service and spares so service, repairing, denting and painting besides increasing revenue also promoted sales of cars because a customer likes such a peace where he can get all the things done and has not to move here and there to get all the things done and has not to move here and there to get one thing or the other. The show room area comprised of around 5000 square feet and nearly 20000 square feet of area was allocated for the workshops. Gulzar Motors is also planning to extend its operations by opening more workshops with a proper location. Technology Automation in the workshop has been an important step in the real transformation as repairing plays an important role in the success of such a business. In addition to providing services to the customers under one roof it has succeeded in up gradation of technology which has paved way for large scale repairing and consequently revenue generation.
FACTORS OF PRODUCTION
Physical and human traditionally, four factors of production have been recognized- Land, Labor, Capital and Investment. The human factor is an added factor. In the words of Albert Feinstein Try not to become a success, but rather try to become a man of Rare. A manager has not shows his own ability to his associates and subordinates but to motivate them to work harder. If the employees are satisfied they will prove to be valuable assets otherwise they will be greatest liability for organization. People can be your bigger asset or biggest liability. It has been of late recognized that human beings are assets of an organization. It is a process of acquisition, development, motivation and
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maintenance of human resources. Satisfied and satisfactory workforce can besides increasing productivity boost goodwill of a business. A concern with a high labor turnover rate has to face many ups and downs even in the short period. At Gulzar Motors Ltd., the work culture is so designed that the authority and responsibility of all the executives and managers is clear and a team of about one hundred and fifty members continuously move towards their organized goals. The personnel in sales, customer satisfaction and marketing are dedicated towards their individual goals and co-ordinate each other to achieve the organization goals.
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now paying more attention to their relationship with existing customers, to retain them and to increase their share of customers purchase. Need for Customer Relationship Management In the era of competition, a successful organization will be differentiated from others on the basis of the services quality and the value accretion accorded to the customer.The service quality does not confine itself to after sales service. In fact, the service commences even before the sale is concluded. The concept of Relationship Marketing advocated the creation of a conducive situation where by a customer is enabled to arrive at a purchase decision, which is favorable to the organization. A customer who is convinced that the product purchased adds value to his/her convenience and peace of mind is likely to continue the relationship with the organization for along time. Indeed, the relationship flourishes into a life-long partnership. In order to build a long relationship in dynamic market conditions, the organization has to add values to the services offered to the customer that need constant evaluation and up-gradation. The customer value relates to choice, convenience, information, various enablements and most important the relationships. Value is considered to be an important constituent of relationship management. It also, determines the ability of the company to provide superior value to its customers. Another important aspect of Relationship Marketing is Customer Retention. From the point of view of cost, the existing customer contributes more to the bottom line and acquiring a new customer is costly proposition. A satisfied, lifelong customer leads to up-selling and referrals which would pave the way for a strong customer base and its expansion. Up-selling means motivating the existing customers to trade up for more profitable products.
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Cross-selling on the other hand means selling a product to a customer as a result of or along with other purchases. Referrals mean satisfied customer referring the use of companys product(s) to prospects.
BENEFITS OF CRM
CRM has fundamentally changed the way we market. The highest art of CRM is to come up with a personalized offer that a customer is likely to accept. CRM enhances the practical value of marketing through efficient performance of the following tasks. 1) Managing customer relations in a proper way to track the buying pattern and overall relationships with the existing customers. 2) Customizing services, promotions, and pricing to customer specific needs and requirements. 3) Coordinating and integrating the delivery of multiple services to the same customer. 4) Developing a two-way communicating channel viz. company to the customer, and customer to the company. 5) Ensuring the minimization of service errors and breakdowns. 6) Providing core services with extra value offerings to the customers. 7) Personalizing the customer service encounters as appropriately as possible.
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ELEMENT OF CRM
CRM consists of six vital components, viz, customers, product, service, database, quality and value. CUSTOMER: In order to fully appreciate the concepts behind customer relationship management, a new perspective on the customer is to be developed. Now the shift of every marketer is from acquiring customers to Maintaining Clients. CRM is the holistic process of identifying, attracting, differentiating and retaining customers. It not only involve more than simply listening to customers or providing better products and services but also integrates entire supply chain to create customer value at every step, either through increased benefits or lowered costs. CRM focuses on increasing the Share of Customer rather than Market Share. In order to increase the share of customer, the marketer should create new opportunities for business from the existing pool of customers with new and improved products. The goal is to enhance the potential worth of individual worth of individual customers in terms of their life time value to the firm. PRODUCT: It is important to keep in mind that products mean more than tangible goods. Products are usually a combination of goods, service, ideas and even people. The best way to view a product is as a set of features and advantages that have the capacity to satisfy customer needs and wants, thus delivering valued benefits. Discovering the core value of the product and relating with customer ability and expectations give a better product than competitors. SERVICE: The most important element of CRM is service. Building customer relation depends on service offered by the company. Services
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offered by the company help in building lasting relationships. The satisfied customers are more likely to be loyal customers and loyal customers are likely to give the company a larger share of their business. DATA BASE: Information about the customers must be meaningful which will help the company to meet its goal. The right data about customer will lead the company in a right direction to understand the customer. A structural and step-by-step approach will help in study of the customer and meet the objectives of the company. The point of gathering data is to develop deeper relationships with customers and ultimately to provide more products and services. Database regarding customers can be captured by two systems: 1) Database of customers likes, dislikes, lifestyle and apparel needs that were gathered from telephone and face to face conversations. 2) A database containing customer purchase history. QUALITY: Quality is a double edged sword in developing and maintaining customer relationships. Any company may be successful in generating first time transaction with customers but poor quality discourages the customers to take repeat purchase decision. Quality provides competitive advantage and retains customer forever. Quality applies to every aspect of companys total product offering the issues that help in the quality of the product/services are understanding the customers expectations, needs and wants, translating customer research into specification for quality. Delivering specification and promising what can be delivered. Despite its importance, quality is only one part of the equation in developing long term relation customer.
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VALUE: Value is one of the important elements of developing and maintaining solid relationships to create good vale for customers. As a guiding principal of customers relationship management, value may be defined as customers subjective evaluation of benefit relative to costs, to determine the worth of firms product relative to the offering of other firms.
recognition of potential benefits for the firm and the customer, and technology advances. The implications of marketing a performance rather than an object are well understood today. The reality of many services being rendered on an ongoing periodic basis coupled with the reality of customers forming relationship with people, paves the way for relationship marketing. The core subject i.e. service quality also has simulated interest in relationship marketing. The core subject i.e. service quality also has simulated interest in relationship marketing. The object of improving service quality is to engender customer loyalty. Information technology enhances the practical value of relationship marketing through the efficient performance of key tasks, like tracking the buying pattern of the existing customer, minimizing the possibility of service errors and breakdowns, augmenting core service offerings with valued extras and personalizing service encounters.
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Figure 1. Reasons for Switching to another vendor A customer care system is a customer service system that helps telecommunications service provides acquire and retain loyal customers. The customer care system provides many means for service providers to achieve these goals with the help of technology.
NEEDS OF CONSUMERS
From the service providers point of view, the major business needs of a customer care system are as follows: 1) Capability to proactively acquire new sales and customers- The customer care system should be capable of targeting new sales, as well as matching customers and products, and should offer this information to CSRs when contacting the customer. 2) Capability to provide prompt service to existing customers- The customer care system should include automation to provide prompt service to customers; the system should be designed in such a way that the interaction with the customer is of a high quality (e.g., there
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should be minimum waiting time and no holding time); the ultimate objective is to provide the customer with the required service by the time the session ends (i.e., Thanks for calling. You should be able to use your service now.) 3) Reduce costly human errors- The customer care system should be easy to use, incorporate procedures, reduce information being typed, and verify entered information. 4) Capability to acquire additional marketing information-Any contact with a customer is valuable and should be viewed as ana excellent opportunity to acquire future marketing information; as part of each contact, marketing information should be captured in an easy and consistent manner by CSRs.
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Ease of use- The CSR must be able to focus on the interaction with the customer as opposed to focusing on the use of the customer care system. Decision support- The customer care system must have an expert system to take advantage of the service providers pool of experience on sales and repairs. Self- service capability- A customer care system should support its access through Internet Support for changing business processes- Decision support tools in particular must be easily modifiable in the long term; a customer care system should provide flexibility in the following ways: To avoid becoming the bottleneck in evolving a business process. Ability to evolve toward convergence- The customer care system should provide the capability to add new products, packages, and pricing models. Support sharing of information with other service providers- The customer care system should be able to provide selected information to other service providers. Support for electric bonding- The customer care system should provide support for emerging electronic bonding standards.
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The choice of strategy will be dependent on Ensuring general health and survival of the organization increasing growth and prosperity.
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service company in any industry. Equally, poor service has a cost penalty. It costs up to five times as much to go out and get a new customer as to retain those we have. According to research the average person who has a bad- service experience tells at least nine others about it and 13% of complaints relate their experience to more than 20 other people. In comparison, people who receive silent service only tell three or four others about it Good customer care matters because keeping existing customers is eaier than finding new ones and satisfied customers will do a lot of our advertising for us. Most people consider doing business with a certain company because of a recommendation by a friend or acquaintance. Dissatisfied customers spread the bad news and undermine your business, which ultimately threatens everyones jobs. So, objective must be to provide the highest standard of customer care possible and to always aim for excellence. A customer who feels good doing business with you and through the company is more than likely to stay with you and recommend you to others. Giving first is essential to your growth so put the client first every time, even if it costs you more now. The value of getting the customer in the first place must never ever be overlooked. Always try to answer any questions from your customers as soon as possible; this will create a feeling of professionalism immediately with your clients, so remember first impressions do count.
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The showroom timings are also convenient for the customers to come and visit the dealership at any time. Many customers prefer shopping on weekends. So showroom also opens on Sundays and holidays. When the customers walk in to the dealership, the guard is the first individual with whom a customer interacts. Guard greets the customer with a warm smile and help out the customer to park his vehicle and guide the customer to the showroom.
RECEPTION AREA
The area for reception is also clean and attractive one. Reception list first welcome the customers when they walk in to the showroom and then make them introduce with the DSE.
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CUSTOMER LOUNGE
Dealership also has a comfortable lounge for the customers. Latest issues of popular magazines are properly placed in a rack and kept in the lounge. The kids section is also near to the customer lounge, equipped with a variety of soft toys and games for the children.
DELIVERY AREA
New vehicle delivery is a special event as customers are excited and anxious to take possession of their new vehicle. This opportunity to cement customer goodwill is best conducted in a clean area of the dealership.
ROLE OF SALESPERSON
When customer walks in a showroom, salesperson of the dealership greets the customer with a friendly smile. He creates a friendly space for the customer to unwind. Sakes person listen carefully to the customer and find out what he/she needs. Dealership offer tea/ coffee in the meanwhile to the customer to make him feel comfortable. He also explains the product, features and benefits to the customer patiently and wins the confidence of the customer. Also maintain honesty and integrity in his dealings so as to gain the trust of the customer.
TEST DRIVE
This is one of the most important activities to convert a prospect into sale. This step directly helps the customers to focus on the features, their advantages and benefits. Dealership also offers test drive to the customers whenever they walk in to the showroom.
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Dealership try to find the experience the customer had during the sales and delivery of the vehicle. Send birthday & Anniversary Greetings to the Customers on daily basis by CCE/CCM for long life relationship with dealership. Feedback form System The feedback form system is a very important tool to obtain customers feedback on the experience that the customer had during the purchase of the car.
RECEIVING CUSTOMERS
THE
FEEDBACK
FORM
FROM
THE
Feedback forms are received by post only. Forms having a score of less than 8 on most of the attributes are flagged with red flag and discussed with concerned executives. Feedback form analysis is done for all the dissatisfied cases. In case when the customer has given a very low score, then the best thing they do is speak to the customer. This helps them in knowing the exact
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reasons for low score and suitable corrective action can be taken accordingly. Every month executive wise SSI scores are calculated using the SSI software and the executive with the highest SSI is given some kind of reward. File of all the forms month wise is maintained in a separate file.
ANALYSIS
All customers complaints whether received from PSF or feedback form are resolved by post sales follow up process Also CCM along with the concerned executive visit to customers and resolve the complaint and get a satisfaction note from the customer. The customer complaints coming from Maruti are handled by G.M himself so as to get first hand feedback from customers. A separate docket is maintained for every customer complaint received from Maruti, comprising of original feedback form, copy of apology letter, satisfaction note from the
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customer, copy of PSF sheet, internal feedback form and card analysis. All the complaints are to be resolved within 3 days. So it is preferable to offer a token gift to the customer. For this dealership provides extra fee service or some discount on consumables or some discount on labor charges/spares etc. All the customer complaints are recorded in a proper customer complaints control register.
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CCM gets in touch with the customer over phone and expresses regret on the inconvenience faced by the customer.
Write a letter with the concerned DSE visit the customer hand over the letter and take satisfaction note from the customer
Sends a copy of the letter and the satisfaction note and also file a copy of the same in the customer complaints register/file.
Discuss all customer complaints in the weekly meeting of GM (Sales) on SSI with the entire show room staff. Necessary counter measures are taken to ensure that such complaints are not repeated in future.
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Also dealership keeps in touch by sending the customers information about promotional schemes from time to time and launching of new products and services and maintains public relations. In order to strengthen the brand equity of Maruti Suzuki also sends them mailers containing photocopies of positive news and reviews on Maruti products and results of car ranking by independent rating agencies.
CUSTOMER MEETS
Organizing customer meet in improving SSI, helps in introducing the workshop staff to the customers and also helps in getting referrals. For this dealership organize a customer meet on holiday/Saturday/Sunday. Basically dealership arranges it at the dealership itself so that it also attracts other customers. Customers who have purchased a car from the dealership within the last 1-2 months are invited for the meet.
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customers along with the letter. The idea behind a gift hamper to all the customers is to motivate them. Also dealership during the confirmation can try to know the specific queries which each customer would like to take up during meet.
INTERACTIVE SESSION
After presentation, interactive session is of around 30 minutes to 1 hour. Customers are asked to give feedback about their sales and delivery experience at the showroom.
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FEEDBACK
At the end of the session, customers are asked to fill the feedback form. Also the customers are asked for the reference of their friends/relatives which they think is interested in purchasing a car. A lucky draw is also held by selecting 1-2 feedback form. During presentation customers can ask questionnaire. After presentation, a party is organized by the dealership. In this party, games and competition is organized specially for the kids. Snacks are also provided to the customers.
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Wording of questionnaire (it must be such that it extract desired information accurately and unbiased.) Ability and willingness of the respondent to give accurate and unbiased information. SOURCE OF DATA COLLECTION Data or information is important tool for success of the study; moreover it reduces uncertainty in decision- making process. In order to make meaningful research a suitable methodology has been adopted. Both primary and secondary sources have been used in order to collect vital information about the respective study.
PRIMARY SOURCE Maximum data collected in the study is primary data, which is collected through survey through questionnaire. SECONDARY SOURCE In this study the secondary data is collected through internet sites, book, journals and newspaper. SAMPLING TECHNIQUE A sample of 50 respondents was chosen based on convenient sampling technique.
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CONVENIENT SAMPLING TECHNIQUE It is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non- probability method is often used during preliminary research efforts to get estimate of the results, without incurring the cost or time required to select a random sample.
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CHAPTER-6 ANALYSIS AND INTERPRETATION Q.1. When you go to showroom the person deal with you is knowledgeable? Strongly disagree Disagree Agree Strongly agree - 0% - 30% - 20% - 0%
Strongly disagree 0% Disagree 30% Neither or nor agree 50% Agree Strongly Agree
20%
INTERPRETATION
From the above data shows that 50% respondents thinks that the person he/she dealing with us are neither or nor knowledgeable and 30% respondents disagree with sales person respectively.
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INTERPRETATION
From the above data shows that 80% respondents says yes and 20% respondents says 20%.
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INTERPRETATION
From the above data shows that 90% respondents agree with availability of the products and 10% not agreed.
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INTERPRETATION
From the above data shows that 95% respondents says yes and 5% respondents says 20%.
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Q.5. Is the Gulzar Motors give you attractive discounts offers? Yes 45% No 55%
INTERPRETATION
From the above data shows that 45% respondents satisfied with Gulzar motors Discount offers. But 55% respondents are dissatisfied.
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Strongly disagree
0%5%
Disagree
15%
30%
INTERPRETATION From the above data shows that 50% respondents thinks that the dcor of waiting is pleasing has neither or nor knowledgeable and 30% respondents satisfied with place respectively.
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Q.7. Is the Gulzar Motor offering for a test drive? YES NO 100% 0%
INTERPRETATION From the above data shows that 100% respondents satisfied with Gilzar Motors.
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Q.8. Post Sales follow ups are done regularly? Yes No 100% 0%
INTERPRETATION From the above data shows that 100% respondenta satisfied with Gulzar Motors.
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Q.9. Is Gulzar Motors gives the Responds to complaints quickly? Yes No 70% 30%
INTERPRETATION From the above data shows that 70% respondents satisfied with Gulzar response.
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Q.10. What is your overall opinion about Gulzar Motors? Very Bad Bad Neither Bad nor Good Good Very Good 5% 20% 40% 30% 5%
Very Bad
5% 30% 5%
Bad
20%
INTERPRETATION
From the above data shows that mostly respondents falls in the category as neither or nor, good, bad, but very bad and very good both are same.
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CHAPTER-7 FINDINGS
Dealerships responsibility is not limited to sales satisfaction but also to provide satisfaction to the customers. Dealership efforts are not only getting new customers but also to keep existing customers. I also found that customers complaints is not only the fault of dealership but sometimes customers are also responsible for it due to some reasons. (Incomplete documents specific delivery time). Provide proper services.
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CHAPTER-8 LIMITATIONS
Limited Working area. No body bothers about feedback form after delivery. Not possible to have a face to face interview as customers do not interact after delivery of the car. Some time party was not present at the time of services.
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If customers are signing the delivery commitment checklist, they should not blame DSEs for it as DSEs do not have the authority for extra discount.
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The above graph indicates that 21% customers are satisfied while 79% are dissatisfied with the dealership which is mainly attributed to the complaints as enumerated above.
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Chapter-12 QUESTIONNAIRE Name Age Occupation Sex Address Income status ______ ______ ______ Male/ Female ______ ______
Yes No
____________ ____________
Q.5. Is the Gulzar Motors give you attractive discounts offers? Yes No ____________ ____________ ____________ ____________ ____________ ____________ ____________
Q.6. Is the Dcor of the waiting area is pleasing? Strongly disagree Disagree Neither or nor agree Agree Strongly agree Yes No Yes No ____________ ____________ ____________ ____________
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Q.9. Is Gulzar Motors gives the Responds to complaints quickly? Yes No ____________ ____________ ____________ ____________ ____________ ____________ ____________ THANK YOU
Q.10. What is your overall opinion about Gulzar Motors? Very Bad Bad Neither Bad nor Good Good Very Good
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