CHAPTER-1

INTRODUCTION

Customer Relationship Management

Customer Relationship Management entails all aspects of interaction a company has

with its customer, whether it is sales or service related; it starts with the foundation of

relationship marketing. CRM is a systematic approach towards using information and ongoing

dialogue to built long losing mutually beneficial customer relationship. The use of CRM

technology forms the crucial front-end of any e-business strategy, essentially CRM has

emerged as convivial weapon in the hands of the industry laggards as well as leaders to

cascade the business suites; the only touch point which is formulating this base is the

awareness amongst the corporatists to suffice the customers already available to the

companies to large extent.

In today’s first-paced competitive business environment it’s more important than ever to

create and maintain long-losing business relationships.

Today, Customer Relationship Management (CRM) manages business process

spanning sales, support, and marketing creating effective customer interactions. Given the

purpose of CRM, the functionality is straightforward, and the benefits of successful deployments

clearly generate value and profitability for any company. Grate CRM solutions need to

encourage users to interact with the application as well as be in-tune with the business and IT

cost-saving needs.

“For the modern-day CRM to be world class it needs to be revolutionary in market

incursion and evolutionary in technological up gradation.”

Today the major business focus is towards endowing value addition to the sales cycle, and

customer retention rather than constructing a new customer base which is costlier and also an

uncertain chase from business perspective. The basic philosophy behind CRM is that a

company’s relationship with the customer would be the biggest asset in the long-run.

It is now vital for CRM vendors to develop a sound understanding of their target

organizations customer and deliver them with solutions which help in achieving long-term

business relations with their customers. Vendors must also build long-term customer

relationship management strategies with the end-user organizations to assure a series of

deployments, and hence ensuring a regular revenue stream for themselves as well as their

customers.

Evolution of CRM – A Diagrammatic Representation

Before implementing any Customer Relationship Management solution in the

organization there are many questions which need a comprehensive explanation from the user’s

point of view.

o What is the added value preposition of the CRM to the organization?

o What would be the environment under which the implementation done?

o How would the synergies be reflecting in the processes of the company?

These are mere stencils of the holistic scenario prevalent right now, and are to a great extent a

factor which arms the opportunities of long-term survival for any CRM vendor

Need for the study

Organizations having be competitive environment with relationship management of

customer and they are attracting the customer with some effective sale promotions. But some

organizations need to evaluate the purpose, utility, effectiveness of customer satisfaction. They

are fails to evaluate this customer relationship management. So this study has been undertaken

to assess the customer relationship management in the organization.

OBJECTIVES OF THE STUDY

The broad objective is to study the perception of “CUSTOMER RELATIONSHIP

MANAGEMENT WITH REFERENCE TO AUTOMOTIVES”.

To find out the factors that influences the buying decision of a Mahindra motor.

To identify and study the problems faced by the consumers of MAHINDRA MOTOR.

To study the satisfaction level of existing consumer of MAHINDRA MOTOR.

To assess the role of brand image in the purchasing decision of MAHINDRA MOTOR.

To offer conclusions and suggestions.

To study the objectives in detail the following research methodology is adopted.

RESEARCH METHADOLOGY

Research design:

“Research design is the plan, structure. And strategy of investigation conceived

so as to obtain answers to research questions and to control variance”

KERLINGER

The research designs are both descriptive and exploratory in nature. The objectives of this

study is to answer the “who, what, when, where and How “of the subject under investigation.

SAMPLEING PLAN AND SIZE FOR CONSUMERS:

Sampling plays a vital role in deciding the quality of any project while doing this

survey it is felt to conduct the survey for consumers under convenient sampling method.

Convenience sampling was adopted both for consumers where the sample unites are

chosen primarily on the basis of the convenience of the investigators. The sample size was

determined as 100 consumers with 100 male and 100 female

SAMPLE TERRITORY:

The survey has been conducted and restricted to the city of Hyderabad in ANDRA

PRADESH ‘

SOURCE OF DATA:

Data, which is to be used for the project, has come both from primary sources as well

as secondary sources

PRIMARY DATA SOURCES:

The crux of the report is based on the information collected from the respondents with

the help of questionnaires. The primary source of information have been consumers who

have filled up the questionnaire

Consumer who interviewed separately and the respondents jotted down in the

questionnaire for the purpose.

SECONDARY DATA SOURCES:

Information has also been borrow from both internal sources such as company records

and external sources like journal, magazines and book on marketing research

DATA COLLECTION METHOD:

The survey method was employed for primary data collection. The medium of

date collection was through personal interviews. Where the respondents were questioned in

face-to-face meeting the consumers were met either in their homes (or) place of work. Some

of respondents were questioned through telephones,

TOOLS FOR DATA COLLECTION

The data was collected through structured questionnaire. Questions can be

categorized into multi-choice and open-ended questions. Questionnaires were designed for

consumers. Care was taken to ensure that the questions framed were compatible with

research objectives.

Exactness and correctness the final version of the questionnaire has been drafted and

was taken up for field survey purposes.

FREQUENCY DISTRIBUTION TABLE:

A frequency distribution refers to data classified on the basis of some variable,

which can be measured such as age, income etc.

PERSENTAGES:

Percentages are used to describe relationships, since they reduce everything to a

common base and there by allow meaningful comparisons to be made.

PIE DIAGRAM / BAR DIAGRAM:

There are pictorial representations of statistical data with several subdivisions in

a circular from and column from respectively.

METHOD OF WEIGHTED AVERAGE FOR RANKS:

This method is used to complete the weighted averages for the rank to determine

which factor is the most preferred one. The ranks are taken as the variable and the numbers

of people are the weights for each rank. From the weighted averages the most preferred

factor is chosen as the one with the minimum average. The next average selects the rank

and the procedure continues for other ranks also.

Limitations

• As the time given for the completion of the project was limited.

• The survey was restricted to Hyderabad and Secunderabad only.

• They may be few opinions, which might have been missed out.

CHAPTER-2

INDUSTRIAL PROFILE

Automobile industry in India

The automobile industry in India is the ninth largest in the world. India emerged as Asia's

fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed

restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and

Mahindra & Mahindra, expanded their domestic and international operations. India's robust

economic growth led to the further expansion of its domestic automobile market which attracted

significant India-specific investment by multinational automobile manufacturers

Bryonic automotive industry emerged in India in the 1940s. Following the independence,

in 1947, the Government of India and the private sector launched efforts to create an

automotive component manufacturing industry to supply to the automobile industry. However,

the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj

which hampered the Indian private sector. After 1970, the automotive industry started to grow,

but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still

a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the

establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian

companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government chose

Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in

1991 and the gradual weakening of the license raj, a number of Indian and multi-national car

companies launched operations. Since then, automotive component and automobile

manufacturing growth has accelerated to meet domestic and export demands.

Exports

India has emerged as one of the world's largest manufacturers of small cars. According to New

York Times, India's strong engineering base and expertise in the manufacturing of low-cost,

fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile

companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

Indian Automobile Companies

Notable Indian Automobile Manufacturers

• Ashok Leyland

• Chinkara Motors : Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster.

• Force Motors

• Hindustan Motors : Ambassador.

• Mahindra : Major, Xylo, Scorpio, Xuv-500, Bolero

• Maruti Suzuki : 800, Alto, WagonR, Estilo, AStar, Ritz, Swift, Swift DZire, SX4, Omni,

Versa, Gypsy

• Premier : Sigma, Roadster, RiO.

Electric car companies in India

• Ajanta Group

• Mahindra

• Hero Electric REVA

• Tara International

• Tata Motors

Notable Multi-national automobile manufacturers

Locally manufactured Automobiles of Multi-national Companies

• Audi : A4, A6.

• BMW : 3 Series, 5 Series.

• Chevrolet : Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

• Fiat : Palio, Grande Punto, Linea.

• Ford : Ikon, Fiesta, Fusion, Endeavour, Figo

• Honda : Jazz, City, Civic, Accord.

• Hyundai : Santro, i10, Getz, i20, Accent, Verna, Hyundai , Sonata.

• Mercedes-Benz : C-Class, E-Class

• Mitsubishi : Lancer, Lancer Cedia.

• Nissan : Micra, Sunny, X-Trail, Teana, Blue-bird, Evalia

• Renault : Logan

• Škoda : Fabia, Octavia, Laura.

• Toyota : Corolla, Innova, Fortuner

• Volkswagen : Jetta, Passat, Polo.

• Mahindra & Mahindra : Scorpio, Bolero, Xylo, XUV-500.

Cars sold in India as CBU (Completely Built Units)

• Audi : A8, TT, R8, Q5, Q7.

• Bentley : Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,

Mulsanne.

• BMW : 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.

• Chevrolet : Captiva, Beat, Spark, Aveo , U-Va, Corsa, Optra magnum,Tavera.

• Fiat : Nuova 500.

• Honda : Civic Hybrid, CR-V, City, Accord, Jazz, Brio

• Hyundai : Santa Fe.

• Jaguar : XF, XJ, XK.

• Lamborghini : Gallardo, Murciélago.

• Land Rover : Range Rover, Range Rover Sport, Discovery 4, Freelander 2.

• Maybach : 57 and 62.

• Mercedes-Benz : CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class, Viano.

• Mitsubishi : Pajero, Montero, Outlander.

• Nissan : Teana, X-Trail, 307Z, Micra, Sunny.

• Porsche : 911, Boxter, Panamera, Cayman, Cayenne.

• Rolls Royce : Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.

• Škoda : Superb, Octavia, Laura, Yeti, Fabia.

• Suzuki : Grand Vitara.

• Toyota : Camry, Land Cruiser, Land Cruiser Prado, Prius, Innova, Fortuner, Etios.

• Volkswagen : Beetle, Touareg, Polo, Vento, Passat, Pheaton, Jeeta.

• Volvo : S80, XC90.

CHAPTER-3

Automotive

Manufacturers

Private

Limited

Mahindra & Mahindra

Heritage & History

Automotive Manufacturers Private Limited was incorporated in the year 1948, under the dynamic leadership of Shri. Manubhai Sanghvi and Shri. P.P Sanghvi

Founders Vision

The company started as main dealers of Leyland Motors, UK for marketing their products in the erstwhile states of Bombay, Hyderabad and Saurashtra. The company assembled about 2000 Leyland vehicles at its Kurla Works between 1949 and 1955 In addition to marketing, the company was also engaged in CKD assembly of Leyland vehicles till 1955, when Leyland Motors, U.K. entered into financial and technical collaboration with Ashok Leyland In the year 1958 dealership for Mahindra& Mahindra Limited was taken. The company thereafter took up marketing of products manufactured by Ashok Leyland in the states of Maharashtra, Andhra Pradesh and Gujrat, Mahindra in Andhra Pradesh and Gujarat In 1986 dealership for Maruti Suzuki Ltd., was taken for Maharashtra at Navi Mumbai and subsequently extended to Nagpur, Aurangabad and Nasik. Kobelco, a gaint in the construction equipment sector has been added. In 2007, dealership for Audi was taken for the state of Andhra Pradesh.

An organization grows and succeeds only with the will and support of the people who work for it. Without their devotion, hard work and higher productivity, the vision of seeing the organization growing can only be a distant dream. In Automotive, our greatest asset is people - from top to bottom.

A growing family like ours needs to know more about the success and achievements of each member within the organization, what motivates them to work for the company, what the organization expects from its employees, how the latter can help built the organization to build a good future for themselves, how the organization cares for them, how their work ethics and culture should undergo qualitative changes and so on. It was people who helped shape our past and who must shape our future. It is the people's creativity, diligence and ambition, their concern, their willingness and ability to overcome adversities which are decisive components for our success.

Mission

- Groom and Empower people to think, behave and take decisions

like owners, as we believe they form the essence of our

Organization.

- Progressively encompass every process to systematically de-skill

the organization

Managerial

Business operations experience of nearly 60 years by the principal owners. Our systems are simple, transparent and seamless with inbuilt tracking and control mechanisms. Delegations and empowerment to the employees is a part of our culture thus ensuring all round efficiency. We adopt the best HR practices in the industry, to hire and retain manpower at its optimum level. Financial AML is one of the largest automobile dealers in India with turnover of over Rs 2526 crores in 2006-07 and Rs 3280 crores in 2007-08. Average growth rate of 30% p.a. for the last 3 years Human capital We are led by 30 senior industry professionals with over 15 years experience with strong academic qualifications and proven business acumen. Employ 2000 technical employees and 750 support staff with 3-5 years experience. Our retention rate is the highs among dealerships at more than 92%.

The above HR Initiatives of our Organization resulted in

Attrition rate is maintained at 6.0%. (against industry average of approximately 24%) Increased Employee Engagement leading to high productivity Converting Job into fun filled assignment Organization as the second home of associate

Training Plan at AMPL

Self-Development: Personality Development Time Management

Stress Management

Team Development: Leadership & Motivational Skills for managers Communication & Presentation Skills Interpersonal Skills

Organization Development: Work Related training (technical & non-technical)

Andhrapradesh

Location Facility Franchise

R.P.Road,SecunderabadSales Office / Showroom, Workshop

Ashok Leyland, Mahindra 4 and 3 wheelers

Jeedimetla,hyderabad Workshop Mahindra 4 Wheelers

Kompally,HyderabadWorkshop,spareparts

Ashok Leyland

AutonagarUnit 1, Hyderabad WorkshopAshok Leyland and Mahindra

Aml Motors,Autonagar Unit 2 ,hyderabad

Workshop Mahindra

Aml Motors,Distillary Road,Secunderabad

Workshop Mahindra

Aml Motors, Punjagutta,hyderabad

Showroom Mahindra

Somajiguda,hyderabad Showroom Kobelco

Nagole,hyderabad ShowroomAshok Leyland and Mahindra

Attapur, Secunderabad Showroom AshokLeyland

Hydernagar, SecunderabadShowroom ,Workshop

Mahindra 4 and 3 wheelers

Gaganpahad, Secunderabad Workshop Mahindra

Jubliee Hills,hyderabad Showroom Volkswagen

Madhapur,hyderabad Workshop Audi,volkswagen

Tirumalghery, Secunderabad Showroom Volkswagen

Autonagar,Vijayawada Spares Outlet Ashok Leyland

NTR Colony, Ring Road, Vijayawada.

Sales Office Ashok Leyland

Gudavalli, Vijayawada Workshop Ashok Leyland

Maddilapalem,VizagShowroom,Workshop

Mahindra

Paradesipalem,Vizag Workshop Mahindra

Gajuwaka,VizagShowroom,Worksh

Ashok Leyland

Product

Product variety

Quality & Design

Features

Brand name

Packaging & Services

Warranties & Returns

Product

Product variety

Quality & Design

Features

Brand name

Packaging & Services

Warranties & Returns

Price

List price

Discounts

Allowances

Payment period

Credit terms

Price

List price

Discounts

Allowances

Payment period

Credit terms

Place

Channels

Coverage & Locations

Assortments

Inventory

Transportations

Logistics

Place

Channels

Coverage & Locations

Assortments

Inventory

Transportations

Logistics

Promotion

Advertising

Personal selling

Sales promotion

Public relations

Promotion

Advertising

Personal selling

Sales promotion

Public relations

Target

Customers

Target

Customers

Ashok Leyland and Mahindra & Mahindra have invited our company management to their Dealer Advisory Panel based on operations and performance of our organization.

This panel is constituted with selected dealership, who advise the manufacturers on various operations concerning the company and their dealerships in terms of Product, Processes and Systems, HR Practices, Sales and Services etc.

Awards- M&M :

Best HR Practices from 03-04 to 2008 Best Vehicle Sales Performance in South India in 03-04 to 2008 Best Spare Parts and Accessories Sales Performance in 2004-05 Best Systems and Processes among the dealers in 2004-05 to 2008 Best Workshop Performance in 2004-05

Markets:

The concepts of exchange and relationships lead to the concept of a market. A market

is the set of actual and potential buyers of a product. These buyers share a particular need or

want that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer relationships.

However, creating these relationships takes work. Sellers must search for buyers, identify must

first create a need-satisfying marketing offer (product). It must decide how much it will charge

for the offer (price) and how it will make the offer available target consumers (place).Finally, it

must communicate with the target customers about the offer and persuade them of its merits

(promotion).

Marketing Management concepts

Production Production Product Product SellingSelling MarketingMarketing SocietalSocietal

The impact of a 5% increase in retention rates

Industry Increase in profits

Advertising Agency

Life-insurance company 90%

Branck bank deposits 85%

Publishing 85%

Auto service 81%

Auto/home insurance 80%

Credit card 75%

Industrial brokerage 50%

Industrial distribution 45%

Industrial laundry 45%

Office-building management 40%

Existing Selling & Profits through

Factory products promoting sales volume

Customer Integrated Profits through

Market needs marketing customer satisfaction

Society

(Human welfare)

Consumers

(Want satisfaction)

Company

(Profits)

Implementation

Carry out plans

(The company turns the plans

In to action)

Implementation

Carry out plans

(The company turns the plans

In to action)

Control

Measure results

Evaluate results

Take corrective action

Control

Measure results

Evaluate results

Take corrective action

Analysis

Planning

Develop strategic plans

Place

Channels

Coverage & Locations

Assortments

Inventory

Transportations

Logistics

Place

Channels

Coverage & Locations

Assortments

Inventory

Transportations

Logistics

Control

Measure results

Evaluate results

Take corrective action

Control

Measure results

Evaluate results

Take corrective action