Customer satisfaction.doc

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CHAPTER-I

INTRODUCTION

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INTRODUCTION

Customer satisfaction, abusinessterm, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key

performance indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of

business strategy.

It's a well known fact that no business can exist without customers. In the business of

Website design, it's important to work closely with your customers to make sure the site

or system you create for them is as close to their requirements as you can manage.

Because it's critical that you form a close working relationship with your client, customer

service is of vital importance. What follows are a selection of tips that will make your

clients feel valued, wanted and loved.

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1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If

you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest

assured, though, it does get easier over time. It's important to meet your customers face to

face at least once or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with someone

they've actually met in person, rather than a voice on the phone or someone typing into an

email or messenger program. When you do meet them, be calm, confident and above all,

take time to ask them what they need. I believe that if a potential client spends over half

the meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a

response to an email or phone call. It might not always be practical to deal with all

customers' queries within the space of a few hours, but at least email or call them back

and let them know you've received their message and you'll contact them about it as soon

as possible. Even if you're not able to solve a problem right away, let the customer know

you're working on it.

A good example of this is my Web host. They've had some trouble with server hardware

which has caused a fair bit of downtime lately. At every step along the way I was emailed

and told exactly what was going on, why things were going wrong, and how long it

would be before they were working again. They also apologized repeatedly, which wasnice. Now if they server had just gone down with no explanation I think I'd have been

pretty annoyed and may have moved my business elsewhere. But because they took time

to keep me informed, it didn't seem so bad, and I at least knew they were doing

something about the problems. That to me is a prime example of customer service.

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3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This is

very true. It's very important to be friendly, courteous and to make your clients feel like

you're their friend and you're there to help them out. There will be times when you want

to beat your clients over the head repeatedly with a blunt object - it happens to all of us.

It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at

all times remain polite and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined

customer service policy is going to save you a lot of time and effort in the long run. If a

customer has a problem, what should they do? If the first option doesn't work, then what?

Should they contact different people for billing and technical enquiries? If they're not

satisfied with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to person, or

not knowing who to turn to. Making sure they know exactly what to do at each stage of

their enquiry should be of utmost importance. So make sure your customer service policyis present on your site -- and anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a

client of? Have you ever had a personalized sign-up confirmation email for a service that

you could tell was typed from scratch? These little niceties can be time consuming and

aren't always cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's

something. It shows you care; it shows there are real people on the other end of that

screen or telephone; and most importantly, it makes the customer feel welcomed, wanted

and valued.

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6. Anticipate Your Client's Needs & Go Out Of Your Way to Help

Them Out

Sometimes this is easier said than done! However, achieving this supreme level of

understanding with your clients will do wonders for your working relationship.

Take this as an example: you're working on the front-end for your client's exciting new

ecommerce endeavour. You have all the images, originals and files backed up on your

desktop computer and the site is going really well. During a meeting with your client

he/she happens to mention a hard-copy brochure their internal marketing people are

developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep

complete with high resolution versions of all the images you've used on the site. A noteaccompanies it which reads:

"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide

you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able

to make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and friends how very

helpful and considerate his Web designers are. Meanwhile, in your office, you lay back inyour chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy

customer will send several referrals your way.

7. Honors Your Promises

It's possible this is the most important point in this article. The simple message: when you

promise something, deliver. The most common example here is project delivery dates.

Clients don't like to be disappointed. Sometimes, something may not get done, or you

might miss a deadline through no fault of your own.

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Scope of the study

The scope is very limited because attitude of the people change according to the

time.

The study is restricted to both Hyderabad and Ranga Reddy Dist and that to

among 100 respondents.

The study is conducted for 45 days.

The study is restricted to certain area. So it could not give an accurate picture

about Andhra Pradesh of India.

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Need of the study

The Indian automobile industry is witnessing changes like never before. The

Indian consumer is changing with new players entering the market and increasing

availability of service, the consumer is demanding more. Now the question is where

Hero MotoCorp Ltd stands in this scenario? Hero MotoCorp Ltd Motors is the only

company that maintenance good relationship with their customers and providing good

service, well as presenting the market with a range of bikes by bikes by introducing

different models, and to provide better after sales service to their customers. Hero

MotoCorp Ltd has increased its service stations all over the country, and thats why

Hero MotoCorp Ltd is ranked as No.1 in customer satisfaction. And to maintain

relationship with there customers Hero MotoCorp Ltd is providing 24 hours service to

there customers after introducing may services, how fat the consumer is satisfying with it,

and to know after sales service ofHero MotoCorp Ltd owners opinion on the service

and the performance of the dealer.

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OBJECTIVES OF STUDY

To know the factors influencing on after sales service of the Company

To know whether the dealer renders after sales service, how fat the consumer is

satisfied with it.

To know the customer perception towards the service.

To know the dealer performance.

To know whether the problem is resolving completely at service station.

To know whether the vehicle is delivered on time at service station.

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RESEARCH METHODOLOGY

Research is the plan structure & strategy for investigation conceived to answer to

research question & control variance. It is the overall operation pattern to framework of

project that stipulated the information to be collected from which sources by word

procedure. What are the two possible sources of data for securing in the above mentioned

information in the primary & secondary data.

Research design: the study undertaken to access the after sales service of Hero

MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt. Ltd).

owners in Hyderabad and R.R.Dist.

Research procedure: the questionnaire designed for the study in the structured &

disguised in nature. It consists of multiple choice & short questions.

Data: information required for the project is mainly primary data. The information was

collected by survey method. With the help of questionnaire by meting various bike

owners Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors

Pvt. Ltd)..

Secondary data is collected form the company journals, magazines, broachers &

websites.

Sample design: the sampling unit was confined to end consumers of the product i.e.

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt.

Ltd). owners to know there satisfaction level regarding performance of bike performance

of bike and service.

Sample universe: the survey was done in Hyderabad and R.R.D.ist only according to

my convenience. It is not giving the complete picture of Andhra Pradesh (or) India.

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Sample frame/unit: professionals, business people, employees etc, who are using Hero

MotoCorp Ltd.

Sample size: the total sample size is 100 only.

Sample method: the information is planned to be collected by sample method, the

sample method followed is random sampling method. The probability random sampling

method is stratified random sampling.

Analytical Method: simple percentage method is used for the analysis purpose.

Period of study: study is during the Year 2012.

Data collection:

The information is collected through questionnaires and personal interviews. And the

information of customers is known by companys service sheet and the free service sheet.

A Direct structure questionnaire has been asked to all the respondents in the sample

followed by direct personal interviews. Duration of day 45 days.

Descriptive Studies:

In descriptive studies, when the researcher is interested in knowing the characteristics of

certain groups such as age. Sex, educational level occupation of income, a descriptive

study is necessary. Descriptive studies are well structured. It is therefore, necessary that

the researcher gives sufficient thought to framing research questions and deciding the

types of data to he collected and the procedure to be used for this purpose-The objective

of such a study is to answer the who, what and how of the subject under investigation.

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SOURCES OF DATA:

A classification of data is very important procedure in this concept. The collected data

can be classified into two types.

1. primary data

2. secondary data

Primary data

The primary data is very important source for to make suggestions to the title

obtained. This data can be collected in various methods like survey, interviewing,

feedback, i.e. Group Discussion etc., for collection of primary data the survey method is

used, which involved predetermined questions. The structured questionnaire contained a

form list of question framed so as to get the facts. But it involves high risk and huge

expensive method to get the facts.

Secondary Data

Collection of secondary data is very easy compared with primary data. But this

data is also very important for the growth of an organization, to predict the future and

will help to make the future plan regarding sales and improve the measures of sales.

This data can be collected from the magazines. Annual reports of the organization

and other published data.

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Sample procedure

The sample size consists of 100 consumers. The sample consists of Businessman,

Doctors, Engineers, Officers and Contractors etc.

The survey was conducted in the form of an interview among randomly chosen

sample of 100 consumers ofHero MotoCorp Ltd customers Sample size form the dealer

randomly.

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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.

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CHAPTER-II

INDUSTRY PROFILE

&

COMPANY PROFILE

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Automobile industry in India

The automobile industry in India is the ninth largest in the world with an annual

production of over 2.3 million units in 2008 In 2009, 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 and 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. In February 2009, monthly sales of passenger cars in India

exceeded 100,000 units.

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 automotiveindustry started to grow, but the growth was mainly driven by tractors, commercial

vehicles and scooters. Cars were still a major luxury. Japanesemanufacturers 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.

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HISTORY OF THE TWO WHEELERS:

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an

internal combustion engine (or, less often by an electric engine). The automobile was

the reply to the 19th century reams of self-propelling the horse-drawn bikeriage.

Similarly, the invention of the motorcycle created the self propelling bicycle. The first

commercial design was three-wheeler built by Edward Butler in Great Britain in 1884.

This employed a horizontal single-cylinder gasoline engine mounted between two steer

able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the

conversion of many bicycles or pedal cycles by adding small, centrally mounted spark

ignition engine engines. There was then felt the need for reliable constructions. This led

to road trial tests and competition between manufacturers. Tourist Trophy (TT) raceswere held on the Isle of main in 1907 as reliability or endurance races. Such were the

proving ground for many new ideas from early two-stroke-cycle designs to supercharged

multivalent engines mounted on aerodynamic, bikebon fiber reinforced bodywork.

INVENTION OF TWO WHEELERS:

The invention of two wheelers is a much-debated issue. Who invented the first

motorcycle? May seem like a simple question, safety, bicycle, i.e., bicycle with front

and rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel.

Those bicycles in turn described from high-wheel bicycles. The high wheelers

descended from an early type of pushbike, without pedals, propelled by the riders feet

pushing against the ground. These appeared around 1800, used iron banded wagon

wheels, and were called bone-crushers, both for their jarring ride, and their tendency to

toss their riders. Gottiieb Daimler (who credited with the building the first motorcycle in

1885, one wheel in the front and one in the back, although it had a smaller spring-loaded

outrigger wheel on each side. It was constructed mostly of wood, the wheels were of the

iron-banded wooden-spooked wagon-type and it definitely had a bone-crusher chassis!

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FURTHER DEVELOPMENTS:

Most of the developments during the early phase concentrated on three and four-

wheeled design since it was complex enough to get the machines running with out having

to worry about them falling over. The next notable two-wheeler though was the

Hildebrand & Wolf Mueller, patented in Munich in 1894. In 1895, the French firm of

DeDion-button built and engine that was to make the mass production and common use

of motorcycle possible. The first motorcycle with electric start and a fully modem

electrical system; the Hence special from the Indian Motorcycle Company astounded the

industry in 1931. Before World War 1, IMC was the largest motorcycle manufacturer in

the world producing over 20000 bikes per year.

INCREASING POPULARITY:

The popularity of the vehicle grew especially after 1910, in 1916; the Indian

motorcycle company introduced the model H racer, and placed it on sale. During World

War 1, all branches of the armed forces in Europe used motorcycles principally for

dispatching. After the war, it enjoyed a sport vogue until the Great Depression began in

motorcycles lasted into the late 20th

century; weight the vehicle being used for high-speed

touring and sport competitions. The more sophisticated of a 125cc model. Since then, an

increasing number of powerful bikes have blazed the roads.

HISTORICAL INDUSTRY DEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in the

World. It stands next only to Japan and China in terms of the number of V produced and

domestic sales respectively. This destination was achieved due to variety of reason like

restrictive policy followed by the government of India towards the passenger bike

industry, rising demand for personal transport, inefficiency in the public transportation

system etc. The Indian two-wheelers industry made a small beginning in the early 50s

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when Automobile products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole producers.

The two wheelers market was opened were opened to foreign competition in the

mid-80s. And the then market leaders-Escorts and Enfield were caught unaware by the

onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the

availability of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda

then the only producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki

and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles

respectively. These two players initially started with assembly of CKD Kits, and later on

progressed to indigenous manufacturing.

The industry had a smooth ride in the 50s, 60s and 70s when government

prohibited new entries and strictly controlled capacity expansion. The industry saw a

sudden growth in the 80s. The industry witnessed a steady of 14% leading to a peak

volume of 1.9 mn vehicles in 1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This resulted

in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn

vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93

and FY94. Hero Honda showed a marginal decline in 1992.

The reason for recession in the sector were the incessant rise in fuel prices, high

input costs and reduced purchasing power due to significant like increased production in

1992, due to new entrants coupled with recession in the industry resulted in companies

either reporting losses or a fall in profits

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CONCLUSION:

The two-wheelers market has had a perceptible shift from a buyers market to a

sellers market with a variety of choice, players will have compete on various fronts viz.

pricing, technology product design, productivity after sale service, marketing and

distribution. In the short term, market shares of individual manufacturers are going to be

sensitive to capacity, product acceptance, pricing and competitive pressures from other

manufacturers.

As incomes grow and people grow and people feel the need to own a private means

of transport, sales of two-wheelers will rise. Penetration is expected to increase to

approximately to more than 25% by 2005.

The motorcycle segment will continue to lead the demand for two-wheelers in the

coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%

growth in the scooter market and 3% by moped sales respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the

coming future.

The Asian continent is that largest user of the two-wheelers in the world. This is due to

poor road infrastructure and low per capita income, restrictive policy on bike industry.This is due to oligopoly between top five players in the segment, compared to thirsty

manufacturers in the bike industry.

Hero Honda motors LTd., is one of the leading companies in the two-wheeler

industry. At present it is the market leader in the motorcycle segment with around 47%

the market share during FY 2000 01. During the year, company posted a 41.15% yoy

rise in turnover to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in

Motorcycle sales volumes. The company has emerged as one of the most successful

players, much ahead of its competitions an account of its superior and reliable product

quality complemented with excellent marketing techniques. The company has been

consistently addressing the growing demand for motorcycles and has been cumulative

customer base of over 4 million customers, which is expected to reach 5min mark with

rural and semi-urban segment being the new class of consumers.

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COMPANY PROFILE

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CORPORATE PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler

manufacturing company in India and also, the 'World No.1' two-wheeler company in

terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain

this position till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30

seconds, someone in India buys Hero Honda's top-selling motorcycle Splendor.

Vision

The Hero Honda story began with a simple vision the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero Hondas

commitment to customer, quality and excellence, and while doing so, maintaining the

highest standards of ethics and societal responsibilities. Hero Honda believes that the

fastest way to turn that dream into a reality is by remaining focused on that vision.

Strategy

Hero Hondas key strategy has been driven by innovation in every sphere of activity

building a robust product portfolio across categories, exploring new markets,

aggressively expanding the network and continuing to invest in brand building activities.

Manufacturing

Hero Honda bikes are manufactured across three globally benchmarked manufacturing

facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state

of Haryana in northern India. The third and the latest manufacturing plant is based at

Haridwar, in the hill state of Uttrakhand.

Technology

In the 1980s Hero Honda pioneered the introduction of fuel-efficient, environment

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friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be

technology pioneer. It became the first company to launch the Fuel Injection (FI)

technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

Products

Hero Honda's product range includes variety of motorcycles that have set the industry

standards across all the market segments. The company also started manufacturing

scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of

requirements across all the segments.

Distribution

The company's growth in the two wheeler market in India is the result of an intrinsic

ability to increase reach in new geographies and growth markets. Hero Honda's extensive

sales and service network now spans close to 4500 customer touch points. These

comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-

appointed outlets across the country.

Brand

The company has been continuously investing in brand building utilizing not only the

new product launch and new campaign launch opportunities but also through innovative

marketing initiatives revolving around cricket, entertainment and ground- level

activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf.

Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was

played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth

Games Delhi 2010.

2010-11 Performance

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent

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Net profit after tax at Rs. 1927.90 Crores

Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per

share on face value of each share of Rs. 2 each

EBIDTA margin for the year 13.49 per cent

EPS of Rs. 96.54

2009-10 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2

EBIDTA margin for the year 17.4 per cent

EPS of Rs. 111.77, growth of 74.1 per cent

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HERO HONDA'S MISSION

Hero Hondas mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and

social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps theorganization forge a unique and mutually beneficial relationship with all its stake holders.

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HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,

extensive dealer network, efficient supply chain and world-class products with cutting

edge technology from Honda Motor Company, Japan. The teamwork and commitment

are manifested in the highest level of customer satisfaction, and this goes a long way

towards reinforcing its leadership status

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

Director

10 Gen. (Retd.) V. P. Malik Non-executive & Independent

Director

11 Mr. Analjit Singh Non-executive & Independent

Director

12 Dr. Pritam Singh Non-executive & Independent

Director

13 Ms. Shobhana Bhartia Non-executive & Independent

Director

14. Mr. M. Damodaran Non-executive & Independent

Director

15. Mr. Ravi Nath Non-executive & Independent

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Director

16. Dr. Anand C. Burman Non-executive & Independent

Director

BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and

the $ 3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry

(CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the

Board of the Country's Central Bank (Reserve Bank of India). In recognition of his

contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by the

Union Government.

Mr. Brijmohan Lall Munjal is currently on the board of the following companies:

No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

2 Hero Honda Finlease Limited Chairman and Director3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries Limited Director

6 Shivam Autotech Limited Director

KEY MILESTONES OF HERO HONDA

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signedShareholders Agreement signed

1984 Hero Honda Motors Ltd. Incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

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500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing

Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV

Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder

Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland

Splendor declared 'World No. 1' - largest selling single two-wheeler model

"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million production in one single year

New motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer

Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark

Splendor has emerged as the World's largest selling model for the third calendar year in a

row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

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Hero Honda became the World No. 1 Company for the third consecutive year.

Crossed sales of over 2 million units in a single year, a global record.

Splendor - World's largest selling motorcycle crossed the 5 million mark

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced


15 million production milestone achieved


New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched


2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched


CD Deluxe lauched with power start feature

New 'Glamour' launched

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2009

2010

2011

Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark

New motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

New model Splendor Pro launched

Launch of new Super Splendor and New Hunk

New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma

Crosses the landmark figure of 5 million cumulative sales in a single year

PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

2011

2010

Two-wheeler Manufacturer of the Year award by Bike India magazine.Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Carand Bike Awards.- CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a newcorporate entity" by CNBC Awaaz Consumer Awards- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC AwaazConsumer Awards

- Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011"for Hero GoodLife- "Best Activity Generating Short or Long-Term Brand Loyalty" by the PromotionMarketing Award of Asia Order of Merit for Hero GoodLife- Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "MostTrusted Brand" 2011 survey

Company of the Year awarded by Economic Times Awards for Corporate Excellence

2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 -

Two-wheeler Manufacturer of the Year

CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009

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2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009

and Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun &

Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted

"NDTV Profit Business Leadership Award 2008"

TopGear Design Awards 2008 - Hunk Bike of the Year Award

NDTV Profit Car India & Bike India Awards - NDTV Viewers Choice Award to

Hunk in Bike categoryIndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards

- Customer and Brand Loyalty Award in Automobile (two-wheeler) sector

Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of

business innovation and transformation) - Best Customer Loyalty Program in Automobile

category

NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme

"Bike of the Year" - CBZ X-treme (up to 150 cc category)

"Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine

Most Trusted Company , by TNS Voice of the Customer Awards 2006.

CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards

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2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler

Company).

One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed

companies.

No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards

2006: Splendor Plus (Executive)

CD Deluxe (Entry)

Pleasure (Gearless Scooters)Splendor & Passion - Top two models in two wheeler category by ET Brand Equity

Survey 2006.

Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler

Company).

Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -

American Express Corporate Awards 2006.

Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz

Consumer Awards 2006.

Certificate of Export Excellence for outstanding export performance during 2003-04 for

two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion

Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following category: Bike Maker of the Year

Bike of the Year - Achiever

Bike of the Year - Achiever (up to 150 cc category)

Bike of the Year - Glamour (up to 125 cc category)

NDTV Viewers' Choice Award to Glamour in the bike category

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially

ones developed at the grassroots. The Company believes it has managed to bring an

economically and socially backward region in Dharuhera, Haryana, into the national

economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the

Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, andeducation facilities for both adults and children-now nurtures a vibrant, educated and

healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda

factory at Dharuhera for integrated rural development. This includes:

Installation of deep bore hand pumps to provide clean drinking water.

Constructing metalled roads and connecting these villages to the NationalHighway (NH -8).

Renovating primary school buildings and providing hygienic water and toilet

facilities.

Ensuring a proper drainage system at each of these villages to prevent water-

logging.

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Promoting non-conventional sources of energy by providing a 50 per cent subsidy

on biogas plants.

The Raman Munjal Vidya Mandirbegan with three classes (up to class II) and 55

students from nearby areas. It has now grown into a modern Senior Secondary, CBSE

affiliated co-educational school with over 1200 students and 61 teachers. The school has

a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room,

an activity room, a well-stocked library and a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and

hockey and football grounds are used by the local villagers. In the near future, sports

academies are planned for volley ball and basket ball, in collaboration with National

Sports Authority of India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a

Vocational Training Centre. So far 26 batches comprising of nearly 625 women have

been trained in tailoring, embroidery and knitting. The Company has helped women

trained at this centre to set up a production unit to stitch uniforms for Hero Honda

employees. Interestingly, most of the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of

Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36

adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another

100 adults by getting village heads and other prominent villagers to motivate illiterate

adults. Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes,

by the Foundation by providing financial help and other support to the families.

Rural Health Care

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Besides setting up a modern hospital, the Foundation also regularly provides doorstep

health care services to the local community. Free health care and medical camps are now

a regular feature in the Hero Group's community outreach program

KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE

COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of

the way in making your world a better place to live in. Besides its will to provide a high-

quality service to all of its customers, Hero Honda takes a stand as a socially responsible

enterprise respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation

programmers but also expresses the increasingly inseparable balance between the

economic concerns and the environmental and social issues faced by a business. A

business must not grow at the expense of mankind and man's future but rather must serve

mankind.

"We must do something for the community from whose land we generate our

wealth."

A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental

performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our business

processes and practices with specific consideration to substitution of hazardous

chemicals, where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling our

environmental discharges through the principles of "alara" (as low as reasonably

achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water,

electrical energy, paints and chemicals.

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Enhance environmental awareness of our employees and dealers / vendors, while

promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in

our products and services which will meet and exceed customer's growing aspirations

through:

Innovation in products, processes and services.

Continuous improvement in our total quality management systems.

Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons

who may be affected by its operations. We believe that the safe work practices lead to

better business performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and

contractors.

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Continuous improvements in safety performance through precautions besides

participation and training of employees.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX

MOTORS)PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS

PVT LTD. is established on 21 st march 2003. The business is running by only one man.

The owner name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.

Generally the sale will be either on cash basis or on institutional basis. Bank

like ICICI, HDFC and CENTURION are providing loans to customers.

Advertising strategy of phoenix motors:

They are giving the ads through newspapers, wall paintings, hoardings

and field staff. They are upgrading sales by introducing the schemes, group bookings,

institutional sales and customer door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are

allotted for field staff, 5 members are recruited for sales for persons, 5 persons are placed

for evaluating for spare parts, 5 members are allotted for managerial accounts and another

3 persons for cash transaction and other members are allotted for remaining work.

Customer relationship:

They entertain the showroom providing a customers huge having

pool game, internet facility and television with home there system. They provide bile

maintenance programs on every week.

According to other dealers PHOENIX motors in first in sales and best in service. They

treat customer, is the very important person at PHOENIX motors customer satisfaction is

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their motto, why because, they will satisfied customer is the best advertisement. They

provide better value for the customers and as well as employees also. At PHOENIX

motors the customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS:

Average they are selling 25 vehicles per day. PHOENIX motors PVT L.T.D

is the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader

through quality dealer). At PHOENIX motor they gave the quality service to the

customers why because the cost is long forgotten but the quality is remembered for

ever. They treat quality has a...

Q Quest for excellence

U Understanding customers needs

A Action to achieve customers appreciation.

L Leadership determined to be a leader

I involving all the people

T Team spirit to work for a common goal

Y Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be

directly handled by the respective original manufactures (OEMs) except AMCO for

batteries and Dunlop and Falcon tires and Tubes. In case of any defect in proprietary

items, other than the above two mentioned OEMS the dealers must approach the Brach

office dealer of the respective manufacture. For AMCO batteries and Dunlop and falcon

tires, tubes claims will be accepted at our authorized dealerships per the mutually agreed

terms and conditions between HERO HONDA and of these two OEMs in case the claim

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is not accepted for invalid reasons. Then the claim along with the refusal note form the

OEM can be sent to the warranty section at gorgon plan after due to recommendation of

the area service engineer. If any other six services or subsequent paid services is not

availed as per the recommended schedule given in the owners manual. If HERO

HONDA recommended engine oil is not used. To normal wear & tear components like

bulbs, electric wiring, filters, spark plug, clutch plates, braded shoes, fasteners, shim

washers, oil seals, gaskets, rubber parts (other than tyre and tube) plastic components,

chain$ sprockets and in case of wheel rim misalignment or bend.

If there is any damage due o modification or fittings of accessories other than ones

recommended by HERO HONDA. If the motor has been used in any competitive events

like tracking races or rallies. If there is any damage to the painted surface due to

industrial pollution or other extraneous factors. For clams made for any consequential

damage due to any previous malfunction. For normal phenomenon like noise, vibration,

oil seepage, which do not affect the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently the

phoenix motors organized a BLOOD DONATION CAMP for the trust on 21st January

2006.they motivated on the consumers to participated in this camp and also provide

certificate for the customers

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.

THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

PUBLIC KA APNA TRANSPROT

Naye Indian ki Deluxe

Why should boye have all the fun?

Designed To excel

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Yaari Ki Gaadi

Ab sirf Style hi Style bolega

All New SIMPLY SUPER

RIDE THE FUTURE

Solid like you

LIVE OFF THE EDGE

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EVERYBODY FOLLOWS THE

Always game

ABOVE ALL

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CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool

game, Internet facility and television with home theatre system. They provide bike

maintenance programs on every week. According to other dealers PHOENIX motors in

first in sales and best in service. They treat customer, is the very important person at

PHOENIX motors customer satisfaction is their motto, why because, the well satisfied

customer is the best advertisement. They provide better value for the customers and as

well as employees also. At PHONIX motors the customer is the boss.

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SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix motors

organize a BLOOD DONATION CAMP for the trust in every year. They motivated on

the customers to participated in this camp and also provide Certificate for the customers.

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CHAPTER-III

LITERATURE REVIEW

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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 manydefinitions 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

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match the expectations the customer is dissatisfied. Satisfaction is a persons feelings of

pleasure of disappointment resulting for comparing a products perceived performance

(out-come) 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

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

Planningsolution dealing with the support module after the sales of product. It creates an

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advanced environment to the organization, which are in to technical support after sales

e.g. Companies offering electronic goods and motor vehicles etc.

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 products 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

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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

products against which the customer can compare the organization's products.

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 singlemeasurement of performance relative to expectation.

The usual measures of customer satisfaction involve asurvey with a set of statements

using a Likert Techniqueor 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 ofGross 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 marketperformance, both for market indices and

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

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http://en.wikipedia.org/wiki/Sample_surveyhttp://en.wikipedia.org/wiki/Sample_surveyhttp://en.wikipedia.org/wiki/Likert_scalehttp://en.wikipedia.org/wiki/Likert_scalehttp://en.wikipedia.org/wiki/American_Customer_Satisfaction_Indexhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Personal_Consumption_Expenditurehttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stock_markethttp://www.cfigroup.com/http://www.foreseeresults.com/http://en.wikipedia.org/wiki/Sample_surveyhttp://en.wikipedia.org/wiki/Likert_scalehttp://en.wikipedia.org/wiki/American_Customer_Satisfaction_Indexhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Personal_Consumption_Expenditurehttp://en.wikipedia.org/wiki/Stock_markethttp://www.cfigroup.com/http://www.foreseeresults.com/


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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 ProfessorNoriaki 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.

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.

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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.

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 performancemeasurement. The implementation of a

customer service standard should lead to higher levels of customer satisfaction, which in

turn influences customer retentionand customer loyalty.

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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.

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

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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.

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.

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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 products 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

implementing direct and continuous employee contacts with the customers, the

customers' requirements and expectations can be determined. This employee-customer

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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, laborcosts, 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.

After Sales Excellence

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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

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

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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 leading-

edge 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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CHAPTER-IV

DATA ANALYSES

&

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INTERPRETATION

DATA ANALYSES

1. What is the model of BIKE used by customers?

A) SPLENDER +

B) PASSION +

C) GLAMOUR

D) CBZ X-TREME

E) KARIZMA

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Interpretation:

It is observed that 37% of the total respondents use SPLENDER+, 37% of

the respondents use PASSION+,13% of the respondents use HEROHONDA

GLAMOUR,10% of the respondents use HEROHONDA CBZ-XTREM and last 03% of

respondents use HEROHONDA KARIZMA model

2. Which type of BIKE have you bought?

S.No Models No.of Respondents Percentage

1

2

3

4

5

SPLENDER +

PASSION +

GLAMOUR

CBZ X-TREME

KARIZMA

37

37

13

10

03

37 %

37 %

13 %

10 %

03 %

Total No.of Respondents 100 100%

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A) New

B) Pre Owned

94

6

0

10

20

30

40

50

60

7080

90

100

New Pre Owned

Interpretation:

From the survey conducted it is observed that 94% of the respondents purchased

new bikes and 6% of the respondents purchased Pre Owned bikes.

S.No Buyers No. of Respondents Percentage

1

2

New

Pre Owned

94

6

94 %

6 %

Total No. of Respondents 100 100%

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3. Whether the price of the Vehicle is?

A) Affordable

B) Not Affordable

S.No Price No. of Respondents Percentage

1

2

Affordable

Not Affordable

85

15

85 %

15 %


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85%

15%

Affordable

Not Affordable

Interpretation:

It is observed that 85% of the people feel that the price of vehicle is affordable,

and 15% of people feel that the price of vehicle is not affordable.

4. What is the purpose of buying this BIKE?

A) Personal use

B) Other use

S.No Purpose of buying No. of Respondents Percentage

1

3

Personal use

Other use

87

13

87 %

13 %


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Interpretation:

From the data collected it is observed that 87% of the customers use their vehicle

for personal use, 13 % of the buyers use for other use.

5. Who influenced in buying this BIKE?

A) Your self

B) Family

C) Friends

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D) Advertisement

48

32

12

8

05

10

15

20

25

30

35

40

45

50

Your self Family Friends Advertisement

Interpretation:

S.No Influenced No. of Respondents Percentage

1

2

3

4

Your self

Family

Friends

Advertisement

48

32

12

8

48 %

32 %

12 %

8 %


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From the study it is observed that 48% is influenced by themselves, 36% feel that

the family place a vital role to purchase there vehicle, and then comes to friends 12% and

then advertisement 8%.

6. What does this BIKE convey?

A) Status

B) Necessity

C) Comfort

D) Other

S.No bike Conveys No. of Respondents Percentage

1

2

3

4

Status

Necessity

Comfort

Other

24

54

18

04

24 %

54 %

18 %

04 %


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24

54

18

4

0 10 20 30 40 50 60

Status

Necessity

Comfort

Other

Interpretation:

From the data collected it is concluded that 24% of the consumers purchase the

vehicle to maintain the status, where as 54% of the consumers purchase the vehicle

because of their necessity. 18% of the consumers purchases as it give comfort, 12% of

the consumer purchase the vehicle for other reason.

7. What are the reasons for buying this BIKE?

A) PriceB) Mileage

C) Service

D) Brand Image

S.No Crucial No. of Respondents Percentage

1

2

3

4

Price

Mileage

Service

Brand Image

34

53

7

6

34 %

53 %

7 %

6 %


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34

53

7 6

0

10

20

30

40

50

60

Price Mileage Service Brand Image

Interpretation:

It is concluded from the study that 34% of them say that price is crucial,

53% of them say mileage and 7% & 6% of them say service and brand image.

8. You use your BIKE mostly for?

A) Office

B) Family

C) Long drives

D) Shopping

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44

45

9

2

0 10 20 30 40 50

Office

Family

Long Drives

Shopping

Interpretation:

It was observed that 44% of the respondents use there vehicle for going to office,

45% of the respondents use there vehicle to take there family out and 2% and 9% of the

respondents use there vehicle of shopping and long drives.

S.No Bike used for No. of Respondents Percentage

1

23

4

Office

FamilyLong Drives

Shopping

44

459

2

44 %

45 %9 %

2 %


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9. How long you will use this vehicle?

A) 1-2 years

B) 2-4 years

C) 4-8 years

D) 8 years & above

5

15

68

12

0

10

20

30

40

5060

70

80

1-2 years 2-4 years 4-8 years 8 years &

above

S.No How long you will

use

No. of Respondents Percentage

1

23

4

1-2 years

2-4 years4-8 years

8 years & above

5

1568

12

5 %

15 %68 %

12 %


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Documents

Customer satisfaction.doc