Market Potential for Diesel Genrator Sets in Pune Industry at J. P. Synergy Consutants Ltd. by Ankush Shrivastava

8/3/2019 Market Potential for Diesel Genrator Sets in Pune Industry at J. P. Synergy Consutants Ltd. by Ankush Shrivastava

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A

PROJECT REPORT

ON

MARKET POTENTIAL FOR AUTHORISED ANNUAL MAINTENANCE

CONTRACT OF DIESEL GENERATOR SETS IN PUNE INDUSTRIAL

ZONE

SUBMITTED TO

UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

THE DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION (MARKETING)

SUBMITTED BY

ANKUR KUMAR SHRIVASTAVA

VISHWAKARAMA INSTITIUTE OF MANAGEMENT

PUNE-411048

2005-2006



ACKNOWLEDGMENT

This project would not have been completed without the assistance and

guidance of many individuals. I would take this opportunity to acknowledge the

help of them, in providing guidance, spending their valuable time and reviewing

my project.

In particular I would like to express my heart felt gratitude to my project

leader at JP Synergy Consultants, Mr. Pushkar Phadtare for his constant

support, recommendations and continuously motivating me for the project,

without which it would have been not possible to complete my project. His

experience, feedback and hard work kept me on track and helped me produce

much better results.

I would also like to acknowledge the support and valuable time given to me by

my Project Guide Prof. Abhay Kardeguddi and Dr. Sharad Joshi, Director of

Vishwakarma Institute of Management who gave me guidance at each and every

step of my project.

I would also like to thank all the managers in the different companies, which I

visited, for their kind cooperation during my project.



TABLE OF CONTENTS

1. INTRODUCTION 1

2. OBJECTIVES 2

3. COMPANY PROFILE 3

4. EXECUTIVE SUMMARY 5

5. ABOUT THE MAINTENANCE 7

6. RESEARCH INSTRUMENT 12

7. RESEARCH METHODOLOGY 17

8. FIELD WORK 25

9. OBSERVATIONS, ANALYSIS & INTERPRETATION 26

10. LIMITATIONS 46

11. CONCLUSION 47

12. RECOMMENDATIONS 49

13. BIBLIOGRAPHY 51

14. APPENDIX 52



INTRODUCTION



Annual Maintenance Contract

VIM, PUNE 1

INTRODUCTION

Due to the power problem in our country more and more companies and

individuals are using diesel generator sets. In the diesel generator two things are

very important- one is the product and other is the service. So the companies &

other individuals using D.G. sets need service and maintenance of their D.G. sets

for efficient and effective running. It was a hypothesis/thinking that many

companies are not taking authorized annual maintenance contract (AMC) due to

high costs or due to some to other reasons.

So I have undertaken this research project to study the market of AMC and

know the market potential for AMC of DG sets. Another important part of my

research is to check the satisfaction or dissatisfaction of the customers with the

service and to know the reasons for which the companies not prefer authorized

AMC.

Also I have given suggestions that how the companies can improve the service

to their customers and increase the customer satisfaction.



OBJECTIVES




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OBJECTIVES

To determine the present market of authorized annual maintenance

contract (AMC) for diesel generator sets.

To identify the share of different service providers of annual maintenance

contract to various companies.

To know the preference of companies for the annual maintenance contract

given by service providers.

To determine the preference of companies for authorized service.

To know the payment terms for annual maintenance contract preferred by

different companies.



COMPANY PROFILE




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COMPANY PROFILE

JP Synergy Consultants is a firm promoted in the year 2002 by professionals

having wide experience in the industry. This is a consultancy firm engaged in

providing consultancy services to the industry. The areas of operation are:

Marketing

Manufacturing

Human resources development

Project Management

Marketing Consultancy includes market development, channel partner

identification, evaluating distribution network, strategy formulation and

implementation, customer satisfaction index studies, market research and training.

Manufacturing Consultancy includes productivity improvement, quality

enhancement programs and management effectiveness and measurement modules.

Project management includes evaluation and value estimation of plants,

facilitating the process of takeovers, facilitating production process.

Human resource Development consultancy includes managerial effectiveness,

goal setting and evaluation, role of organization and its different focal functions.

The firm is broadly divided into three functional areas namely consultancy &

project management, training and market research.




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The firm s customers include

Kirloskar Oil Engines Ltd.

Tata Motors

Bharat Vikas Group

Coca-Cola

Bank of Maharashtra

Niranjan Polymers Etc. To name few.



EXECUTIVE SUMMARY




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EXECUTIVE SUMMARY

This project was undertaken to perform the market study of annual

maintenance contract (AMC) for diesel generator (D.G.) sets and also to know the

market potential for authorized annual maintenance contract of D.G. sets.

Firstly the questionnaire was prepared and a pilot study was conducted. Then

the questionnaire was revised and the main research study was done. First the areas

outside Pune city were targeted which comprised of companies, hotels, and institutes.

After outside Pune city was covered, Pune city and Pimpri-Chinchwad were targetted.

The maintenance managers through direct interview gave mostly the feedback. A total

of 206 customers were covered in this research.

Through the survey knowledge was gained about the types of D.G. sets used

by companies, how many companies have annual maintenance contract for D.G. sets

or they are doing self-service. The survey gave an insight into the different service

providers to the D.G. sets of different companies, the type of AMC they are providing

i.e. comprehensive or without material. One of the most important things found from

this survey was that how many of the companies are satisfied or dissatisfied from the

service and what are the reasons for their dissatisfaction.

On the basis of conclusions, recommendations are suggested for the AMC

market of D.G. sets. To target more and more customers, the price of the AMC should

be competitive enough to attract the customers. Also the distribution network of

service dealers should be appointed in such away that each important area is covered

to meet the specific customers requirements of that area. The marketing of the AMC




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service should be done in such a way that more and more customers should be

targetted in the promotion.

The type of research methodology selected was descriptive research because

the aim of the research was to collect information from different respondents. Census

method was adopted for the selection of industries. The field for research was decided

such that it would cover all the important areas of Pune district, which have got

potential for AMC.



ABOUT THE

MAINTENANCE




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ABOUT THE MAINTENANCE

Maintenance is the key to lower operating costs. A diesel engine requires

regularly scheduled maintenance to keep it running efficiently.

There are basically two types of maintenance done for diesel generators:

1. Preventive Maintenance:

This type of maintenance is done on a regular basis under a

maintenance schedule so as to prevent any breakdown of the D.G. set. This is the

easiest and least expensive type of maintenance.

There are 4 types of maintenance checks in preventive maintenance:

a) A Check:

Daily

Lubrication: Regular oil level is checked, top up if

necessary

Fuel System: Fuel level in the fuel tank is checked and

the tank cap is secured.

Cooling System: The coolant level is checked in the

radiator top up if necessary and the cap is secured.

Instruments: All instruments are checked if they are

functioning.

Others: Leakage of coolant, fuel and lub oil are checked

& rectified.




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b) B Check:

300 hours/every 3months

All the A checks are repeated

Lubrication:

Oil in the sump is changed, drained off

while still hot and the magnetic drain plug

is cleaned.

The FIP linkage is lubricated by using

oilcan.

Oil level is checked in FIP and governor

and top up if necessary.

Engine oil filter housing is cleaned. Oil

filter cartridge and O-ring are replaced. Oil

filter housing is filled with recommended

engine oil.

Fuel System:

Both fuel filters are changed.

Drain plug of fuel filter bowls are

removed and sediment id drained off.

Cooling System:

Coolant concentration is checked;

replacement or addition of coolant is done

if necessary.




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Radiator core is cleaned with

compressed air.

Air System:

Restriction indicator is checked whether

in operating condition or showing red

signal?

Air cleaner element is cleaned for dry

type air cleaner.

In case, red signal is shown in restriction

indicator, and then the element is taken up

for cleaning.

Oil condition is checked and oil level in

air cleaner oil bath.

Others:

Connections of starter motor and

alternator are checked and tightened if

necessary.

Cylinder head units are tightened (with

engine warm) and in correct sequence.

Valve clearance is checked and adjusted,

if necessary (engine warm).




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c) C Check:

600 hours/every 6 months

Battery mounting is checked. Battery posts and

terminals are cleaned. Terminals are tightened and

Vaseline/petroleum jelly is smeared.

Air ducting hoses are removed and cleaned.

Engine breather cap (stainer) is removed and cleaned in

kerosene oil; air is blown in reverse direction and

refitted. Rubber gasket is replaced, if necessary.

Valve clearance is checked and adjusted, if necessary

(engine warm).

Lubrication of water pump is done with bearing grease.

Fuel filter bowl is cleaned and filter element No.1 is

replaced. The drain plug of fuel filter No.2 is removed

and sediment is drained off. The system is bleeded.

The thermostat is checked for proper functioning and

operating temperature.

Engine is checked for trouble-free operation (colour of

exhaust gases and nozzle operation).

d) D Check:

1200 hours/every 12 months

All A, B, C Checks are repeated.




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Oil pan mounting cap screws is checked whether is

tightened or not.

Fan belt tension is checked and replaced if necessary.

Grease is applied to fan hub & belt tensioner.

The fuel tank is checked for the dirt and sediments.

2. Breakdown Maintenance:

Breakdown maintenance is the maintenance, which is carried out after

the breakdown of the diesel generator. It involves huge cost as the production

is halted due to breakdown on diesel generator, if no alternative power supply

is there.

It should be avoided as far as possible. Preventive maintenance is done

on a regular basis.



RESEARCH

INSTRUMENT




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RESEARCH INSTRUMENT

Marketing researchers have a choice of three main research instruments in

collecting primary data

Questionnaires

Psychological tools

Mechanical devices

QUESTIONNAIRES:

A questionnaire consists of a set of questions presented to respondents because

of its flexibility, the questionnaire is by far the most common instrument used to

collect primary data. These need to be carefully developed, tested and debugged

before they are administered on large scale.

In preparing a questionnaire, the researcher carefully chooses the questions

and their form; wording and sequence, the form of the question asked can influence

the response. Marketing research distinguish between closed-ended and open-ended

questions.

Closed-ended questions specify all the possible answers and provide answers

that are easier to interpret and tabulate.

Open-ended questions allow respondents to answer in their own words and

often reveal more about how people think. They are especially useful in exploratory




VIM, PUNE 13

research, where the researcher is looking for insight in to how people think rather than

measuring how many people think a certain way.

PSYCHOLOGICAL TOOLS:

Marketing researchers can probe a buyer s beliefs and feeling using

psychological tools such as:

Laddering techniques

Depth interviews

Rorshach tests

MECHANICAL DEVICES:

Mechanical devices are occasionally used in marketing research.

Galvanometers measure the interest on emotions aroused by exposure to a specific ad

or picture the tachistoscope flashes and ad to a subject with an exposure interval that

may range from less than one hundredth of a second to several seconds. After each

exposure the respondent s eye movements to see where their eyes land first how long

they linger on a given item and so on.

Quantitative measures:

Some marketers prefer more qualitative methods for gauging consumer

opinion because consumer actions do not always match their answers to survey




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questions. New tools such as video s, pagers and informal interviewing will help

marketers overcome the limitations of traditional research methods.

TYPES OF QUESTIONS:

Closed-end questions

Open-end questions.




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CLOSED-END QUESTIONS

Name Description Example Dichotomous A question with two

possible answers

In arranging this trip did you personally phone

America?

Yes No

Multiple

choice

A question with three or

more answers

With whom are you traveling on this flight?

No one Children only Spouse Friends

Likert Scale A statement with which

the respondent shows the

amount of agreement

Small airlines give better service than large ones.

Strongly disagree Disagree

Agree Strongly agree

Semantic

differential

A scale connecting two

bipolar words. The

respondent selects the

point that represents his

or her opinion

Indian airlines

Large_ _ _ _ _ _ _ _ _ _ Small

Experienced _ _ _ _ _ _ _Inexperienced

Modern_ _ _ _ _ _ _ _ _ _ Old fashion

Importance

scale

A scale that rates the

importance of some

attribute

Airline food service to me is

Very important Important

Not important

Rating scale A scale that rates some

attribute from poor toexcellent

Indian food service is

Excellent Very good GoodFair Poor

Intention to

buy scale

A scale that describes the

respondent intention to

buy

If an in-flight telephone were available on a long

flight I would

Definitely buy Probably buy Not sure Not

Buy




VIM, PUNE 16

OPEN-END QUESTIONS

Name Description Example

Completely unstructured A question that respondents

can answer in an unlimited

number of ways

What is your opinion on Indian

airlines

Word association Words are presented one at a

time and respondents

mention the first word that

comes to mind

What is the first word that comes

to your mind when you hear the

following

Airline_ _ _ _ _ _ _ _ _ _

American_ _ _ _ _ _ _ _ _

Sentence completion An incomplete sentence is

presented and respondents

are asked to complete it

When I choose an airline the

most important consideration in

my decision is_ _ _ _ _ _ _ _

Story Completion An incomplete story is

presented and respondents

are asked to complete it

I flew American a few days

ago. I noticed that the exterior

and the interior of the plane had

very bright colours. This aroused

in me the following thoughts and

feelings_ _ _ _ _ _ _ _ _ _ .Now

complete the story.

Picture A picture of two characters is

presented with one making a

statement respondents areasked to identify with the

other and fill in the empty

Thematic appreciation

test(TAT)

A picture is presented and

respondents are asked to

make up as story about what

they think is happening or

may happen in the picture.



RESEARCH

METHODOLOGY




VIM, PUNE 17

RESEARCH METHODOLOGY

The marketing research process involves a number of inter-activities which

overlaps and do not rigidly follow a particular sequence. A researcher is often

required to think a few steps ahead. For example, if a researcher has formulated a

research problem and is considering the sample plan, he is suppose to consider the

time of data to be collected as also the detailed tabulation. This is because the various

steps will have some influence over the following step.

Let us now describe the major steps involved in marketing research project.

FORMULATING THE RESEARCH PROBLEM

The first step is research is formulating a research problem. It is most

important stage in applied research, as poorly defined problems will not yield useful

results. It is rightly said, a problem well defined is half solved .

Poorly defined problem s cause confusion and do not allow the researcher to Develop

a good research design.

In order to identify the research problem, three categories of symptomatic Situations,

namely, overt difficulties, latent difficulties and opportunities should be studied.

Overt difficulties are those which are quite apparent and which manifest themselves.

For example, if a firm has been witnessing a decline in its sales for sometime this

could be called an overt difficulty. Latent Difficulties, on other hand, are those which

are not so apparent and which, if not checked would soon become evident. For

example, declining sales may in due course demoralize the sales staff. Unnoticed

opportunities indicate the potential for growth in a certain area of marketing. Such

opportunities are not clearly seen and some effort is required to explore them.




VIM, PUNE 18

A complete problem definition must specify each of the following:

[i] Unit of analysis

[ii] Time and space boundaries

[iii] Characteristics of interest- both the results that are of concern to management

and the variables that are to be tested for their relationship to the results

[iv] Specific environmental conditions

Taken together these four aspects identify the who, when, where & what of the

research. These are briefly explained.

UNIT OF ANALYSIS

The individuals or objects whose characteristics are to be measured are called

the units of analysis. The units always identify the objects to be studied. It is

necessary that the universe is well defined. Consider, for example, the statement

Women s dress buyers in Delhi stores on January 30, 1990 . The universe indicates

Buyers of women dresses implying that the buyers may be either male or female.

Time and space boundaries As regards time and space boundaries, we find that two

universes are again different. In the first instance, a precise date, viz. 30th January

1990 is given.

The buyers universe specifies stores located in Delhi.




VIM, PUNE 19

CHARACTERISTICS OF INTEREST

This aspect identifies the focus problem. It is necessary that the problem definition

specify one or more characteristics to be measured and the fact that the nature

relationships amongst them are to be determined. Thus, we may like to know more

specifically as to what dresses are liked by educated women or those who are

employed.

ENVIRONMENTAL CONDITIONS

The problem definition must specify the environment for which the company

wants research results. It may also spell out possibilities of changes as well as the

direction of change in environment so that the research study does not become

irrelevant. It may be emphasized that the problem definition in marketing research is a

step towards identification and structuring of the management s question.

HYPOTHESIS DEVELOPMENT

A hypothesis is a proposition, which the researcher wants to verify. Often

there may be several competing hypothesis, either specified or implied. If before

undertaking the research, the researcher finds that all hypotheses are true, then there is

no need whatsoever to undertake of research is to select among the possible

hypotheses and to test them empirically with the help of statistical tool in order to

ascertain whether they are true or false.

While the formulation and testing of hypotheses are important in research, it is not

necessary that every marketing research study must have a hypothesis.




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CHOICE OF RESEARCH DESIGN

A research design specifies the method and procedures for conducting a

particular study. The researcher should specify the approach he intends to use with

respect to the proposed study. Broadly speaking research designs can be grouped into

three categories- exploratory research, descriptive research and casual research. An

exploratory research focuses on the discovery of ideas and is generally based on

secondary data. It is preliminary investigation, which does not have rigid design.

A descriptive study is undertaken when the researcher wants to know the

characteristic of certain groups such as age, sex, educational level, income,

occupation, etc. In contrast to exploratory studies, descriptive studies are well

structured.

A causal research is undertaken when the researcher is interested in knowing

the cause and effect relationship between tow and more variables. Such studies are

based on reasoning along well-tested lines.

Further, the researcher should select that research design which is appropriate in

achieving the objects to study.

DETERMINING SOURCES OF DATA

The next step is to determine the sources of data to be used. The

marketing researcher has to decide whether he has to collect primary data or depend

exclusively on secondary data. Sometimes, the research study is based on both the

secondary and primary data.

When a study is to be based on a secondary data, whether partly or fully, it is

necessary to satisfy oneself the data are quite suitable for the objectives spelt out by




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the study. A sincere effort must be made to look into the existing data with a view to

examining their suitability for the research. It is only when such secondary data are

unavailable, inadequate, or unreliable, that a researcher should decide on collecting

fresh data.

DESIGNING DATA COLLECTION FROMS

Once the decision in favour of collection of primary data is taken, one has to

decide the mode of collection. The two methods available are observational method

and survey method.

Observation method:

This method suggests that data are collected through one s observation. If the

researcher were a keen observer, with integrity he would be in a position to observe

and record data faithfully and accurately. While the observational method may be

suitable in case of some studies, several things of interest such as attitude, opinions,

motivations and other intangible states of mind cannot be observed.

Surveys:

In marketing research, field surveys are commonly used to collect primary

data from the respondents. Surveys can be (i) personal (ii) telephonic (iii) by mail (iv)

by diary. Of these, personal and mail surveys are more frequently used in India. A

choice has to be made regarding the type of survey for collecting data. There are

certain advantages and limitations of each type of survey. Broadly speaking,

telephonic survey is suitable when very limited information is sought in a short period

of time. Moreover, such information should be readily available with the respondents.

In contrast, surveys based on personal interviews are suitable when detailed




VIM, PUNE 22

information is to be collected. Sometimes a combination of two or more methods

could also be used.

Whether it is a personal or mail survey, it is necessary to design a suitable

questionnaire, conduct a pilot survey and undertake a pre-testing of questionnaire.

The pre-testing will enable the researcher to realize the shortcomings of his

questionnaire. In the light of this reaction of the respondent, coupled with the

personal observation of the researcher, the questionnaire should be modified.

DETERMINING SAMPLING DESIGN AND SAMPLING SIZE

Another aspect, which forms a part of research process, is the sampling plan.

When the marketing has decided to carry out a field survey, he has to decide whether

it is to be a census or sample survey. In almost all cases, a sample survey is

undertaken on account of its overwhelming advantages over a census survey.

When a decision in favour of a sample survey has been taken, it is necessary to

have a clear definition of the population from which the sample is to be drawn, before

deciding on the type of sample design to be used.

The object of sampling is to choose a sample, which will faithfully reproduce

the characteristic of the population or universe.

ORGANISING AND CONDUCTING THE FIELD SURVEY

Having prepared the questionnaires and select the sample design and size of

sample, the next step is to organize and conduct the field survey. Two important

aspects should be looked into- interviewing and the supervision of fieldwork. The task




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of interviewing seems to be simple but, in reality, it is one of the most difficult

tasks in marketing research. This is because respondents are generally hesitant in

giving

information unless approached with tact, initiative and intelligence. Supervision of

fieldwork is equally important to ensure timely and proper completion of the field

survey.

PROCESSING ANS ANALYSING THE COLLECTED DATA

Once the field survey is over and questionnaires have been received, the next

task is to aggregate the data in meaningful manner. A number of tables are prepared to

bring out the main characteristics of the data. The researcher should have a well

thought out framework for processing and analyzing data, and this should be done

prior to the collection. It is advisable to prepare dummy tables; as such an exercise

would indicate the nature and extend of tabulation as also the comparisons of data that

can be undertaken.

In order to derive meaningful results from the statistical tables, the researcher

may use one or more of the following four steps. The first step is to calculate relevant

measures of central tendency as also of dispersion, highlighting the major aspects of

the data. The second is to cross tabulate the data to ascertain some useful relationship.

The third is to calculate the correlation coefficient and undertake a regression

analysis between variables. The fourth is to undertake a multivariate analysis. Such an

analysis uses a variety of techniques to determine important relationship amongst

several variables.

While designing a research study, the researcher should give adequate thought

to the use of particular analytical techniques.




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It is necessary that the researcher give as much importance to the analysis and

interpretation of data as he has given to their collection.

PREPARING THE RESEARCH REPORT

Once the data have been tabulated, interpreted and analyzed, the marketing

researcher is required to prepare his report embodying the findings of the research

study and his recommendations. As a poor report on an otherwise good research will

considerably undermine its utility, it is necessary that the researcher gives sufficient

thought and care to its preparation.

CONCLUSION

The marketing research process, as described above, involves various steps,

through strict adherence to each of these steps may not be necessary. A researcher

may deviate from the above sequence and steps depending on his specific needs.

Further, while it is beneficial to draw a detailed plan and sequence of various

activities in marketing research, it is hardly so if it requires such financial backing as

the firm cannot afford.

Another point worth emphasizing is that howsoever elaborate a research

design may be, it s successful

Implementation depends in no small measures on its management. In fact,

management of research, whether in marketing or not in any other field is of great

importance.



FIELD WORK




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FIELD WORK

Places Visited:

Chandni Chowk

Bavdhan

Pirangut

Khadakvasla

N.D.A. Road

Hinjewadi

Talegaon

Urse

Maval

Kanhe Phata

Nangargaon

Lonavala & Khandala

Phugewadi

Pimpri

Pune City



OBSERVATIONS,

ANALYSIS &

INTERPRETATION




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1. COMPANIES HAVING ANNUAL MAINTENANCE CONTRACT(AMC) FOR D.G.SETS

TYPE OF SERVICE AMC SELF SERVICE

AMC VS. SELF SERVICE 58.25% 41.75%

AMC VS. SELF SERVICE

58%

42%

AMC

SELF SERVICE

From the pie chart, we can see that 58% of companies are taking annual

maintenance contract for service while 42% of companies are doing self-

service.




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2. SHARE OF DIFFERENT SERVICE PROVIDERS OF AMC TOVARIOUS COMPANIES:

1. FOR CUMMINS:

TYPE OF SERVICE TRIDENT SERVICE LOCAL SERVICE

% OF COMPANIES 73.33% 26.67%

Trident services, the authorized dealer of Cummins has got 73.33% market

share in the Cummins diesel generator sets service while other local service

providers have got 26.67% share.

% OF COMPANIES

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

TRIDENT SERVICE LOCAL SERVICE

% OF COMPANIES




VIM, PUNE 28

2. FOR KIRLOSKAR:

TYPE OF SERVICE KIRLOSKAR SERVICE LOCAL SERVICE

% OF COMPANIES 78% 22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

KIRLOSKAR

SERVICE

LOCAL

SERVICE

% OF COMPANIES

% OF COMPANIES

The authorized dealers of Kirloskar have got 51% market share in the

Kirloskar diesel generator sets service while other local service providers have

got 49% share.

Authorized Dealers for Kirloskar are :

1. DV Brahme & Sons Sales & Service Ltd.

2. Kelkar Brothers Sales Pvt. Ltd., Sadashiv Peth

3. Kelkar Brothers Sales Pvt. Ltd., Mulshi

4. Sagarsons Industrial Marketing (P.) Ltd., Pune

5. Vyespee & Co., Pune.




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3. FOR GREAVES:

TYPE OF SERVICE M.K. SERVICE LOCAL SERVICE

% OF COMPANIES 57% 43%

57%

43%

0%

20%

40%

60%

M.K. SERVICE LOCAL

SERVICE

% OF COMPANIES

% OF COMPANIES

M.K. Service, the authorized dealer of Greaves has got 57% market share in

the Greaves diesel generator sets service while other local service providers

have got 43% share.




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3. TYPE OF ANNUAL MAINTENANCE CONTRACT (AMC)

PREFFERED BY COMPANIES

TYPE OF AMC COMPRHENSIVE WITHOUT MATERIAL

% OF COMPANIES 19.17% 71.66%

TYPE OF AMC

19.17%

71.66%

COMPRHENSIVE

WITHOUT MATERIAL

More than 2/3rd

of companies, which are taking AMC, prefer without material

AMC than the comprehensive AMC.




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SATISFACTION WITH THE SERVICE PROVIDER

1. CUMMINS SERVICE:

SATISFACTION SATISFIED NOT SATISFIED

% OF COMPANIES 77.27% 22.73%

77.27% of the companies are satisfied with the Cummins service while

22.73% of companies are dissatisfied.

Local service providers for Cummins diesel generator sets are:

1. Palav Enterprises

2. Sai Genetic Enterprises

3. Renuka Diesel

4. DV Brahme

5. M.K. Service

6. Summit Power Industries Pvt.ltd.

7. Universal Enterprises

8. Bharat Electronics.

SATISFACTION

77.27%

22.73%

SATISFIED

NOT

SATISFIED

% OF COMPANIES




VIM, PUNE 32

ISSUES OF DISSATISFACTION WITH CUMMINS SERVICE:

REASONS IMPROPER SERVICE TIME COST PERSON'S EMPATHY OTHER REASONS

% OF COMPANIES 41.17% 29.41% 17.64% 5.88% 5.88%

REASONS

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

IMPROPER

SERVICE

TIME COST PERSON'S

EMPATHY

OTHER

REASONS

% OF COMPANIES

41.17% of companies are dissatisfied due to improper service, 29.41% are

dissatisfied due to time. 17.64% of the companies are dissatisfied due to cost,

5.85% are dissatisfied due to person s empathy and rest 5.85% are dissatisfied

due to other reasons.




VIM, PUNE 33

2. KIRLOSKAR SERVICE:

KIRLOSKOR SERVICE SATISFIED NOT SATISFIED

SATISFACTION 87.75% 12.25%

SATISFACTION

88%

12%

SATISFIED

NOT SATISFIED

87.75% of the companies are satisfied with the Kirloskar service while

12.25% of companies are dissatisfied.

Local Service Providers for Kirloskar diesel generator sets are:

1. Kulkarni

2. Aishwarya sales & services

3. Sucheta

4. Ace Engineers

5. Dubey

6. M.K. Services

7. Kelkar Brothers

8. S.Engineers

9. Summit Power Indutries Pvt. Ltd.




VIM, PUNE 34

10. Raskar

11. Orient Electronics

12. Acetech

13. Accurate Power Systems

14. Trident Services

ISSUES OF DISSATISFACTION WITH KIRLOSKAR SERVICE:

REASONS IMPROPER SERVICE TIME OTHER REASONS

% OF COMPANIES 20% 60% 20%

REASONS

0% 10% 20% 30% 40% 50% 60% 70%

I M P R O P E R

S E R V I C E

T I M

E

O T H E R

R E A S O N S

% OF COMPANIES

60% of companies are dissatisfied due to time, 20% are dissatisfied due to

improper service. And the rest 20% are dissatisfied due to other reasons.




VIM, PUNE 35

3. ANY OTHER SERVICE:

SATISFACTION SATISFIED NOT SATISFIED % OF COMPANIES 90% 10%

SATISFACTION

90%

10%

SATISFIED

NOT SATISFIED

90% of the companies are satisfied with the any other service while 10% of

companies are dissatisfied.

In any other service, all the other local service providers who give service for

other diesel generator sets come.




VIM, PUNE 36

ISSUES OF DISSATISFACTION WITH OTHER SERVICES:

REASON TIME

% OF COMPANIES 100%

REASON

0% 50% 100% 150%

TIME % OF COMPANIES

All the companies are dissatisfied due to time, i.e. the service person not

coming on time to give the service.




VIM, PUNE 37

PREFERENCE OF COMPANIES FOR AUTHORISED/ NON-

AUTHORISED SERVICE:

SERVICES AUTH. SERVICE NON AUTH.SERVICE NOT REPLIED

PREFERENCES 48.05% 11.65% 40.30%

PREFERENCES

48%

12%

40% AUTH. SERVICE

NON AUTH.SERVICE

NOT REPLIED

48% of companies prefer authorized service, 12% of the companies not prefer

authorized service & 40% of the respondents have not replied.




VIM, PUNE 38

REASONS FOR AUTHORISED SERVICE PREFERENCE:

REASONS GOOD SERVICE GOOD MATERIAL RELIABILITY GUARANTEE ANY OTHERS

PREFERENCES 66 27 40 9 11

PREFERENCES

0

10

20

30

40

50

60

70

G O O D S E R V

I C E

G O O D M A T E R

I A L

R E L I A B I L I T Y

G U A

R A N T

E E

A N Y O T H E

R S

N O . O

F C O M P A N I E

PREFERENCES

66 companies prefer authorized service due to good service.

40 companies prefer it due to reliability.

27 companies prefer it due to good material.

9 companies prefer it due to guarantee.

11 companies prefer authorized service due to other reasons.




VIM, PUNE 39

REASONS FOR NON-AUTHORISED SERVICE PREFERENCE:

9 companies prefer non-authorized service due to cost.

2 companies prefer it due to good service.

3 companies prefer it due to time.

1 company prefers non-authorized service due to availability of trained

workers.

9 companies prefer it due to other reasons.

REASONS COST GOOD SERVICE TIME AVAILABILITY OF TRAINED

WORKERS ANY

OTHERS

PREFERENCES 9 2 3 1 9

PREFERENCES

0 2 4 6 8 10

COST

GOOD SERVICE

TIME

AVAILABILITY OF TRAINEDWORKERS

ANY OTHERS

PREFERENCE




VIM, PUNE 40

PAYMENT TERMS FOR ANNUAL MAINTENANCE CONTRACT

PREFERRED BY COMPANIES:

PAYMENT TERMS MONTHLY QUARTERLY HALF YEARLY YEARLY AS PER WORK

PREFERENCES 9.61% 17.31% 5.77% 47.11% 20.19%

PREFERENCES

10%

17%

6%

47%

20%

MONTHLY

QUARTERLY

HALF YEARLY

YEARLY

AS PER WORK

47% of companies prefer yearly payment for AMC.

20% of companies prefer payment for AMC as per work.

17% of companies prefer quarterly payment for AMC.

10% of companies prefer monthly payment for AMC.

6% of companies prefer half -yearly payment for AMC.




VIM, PUNE 41

RELATION BETWEEN CUSTOMER SATISFACTION &

AUTHORIZED MARKET SHARE:

For finding the relationship between customer satisfaction and authorized, the areas

visited have been divided into five zones-Chandni Chowk, Pirangut, Talegaon, Pimpri

& Pune City.

Then it was observed for Kirloskar Oil Engines Ltd. (KOEL) & Cummins

their no. of D.G.sets used. Then for no. of Kirloskar D.G.sets & Cummins D.G.sets

being used, no. of customers taking authorized service & no. of customers satisfied

with the service. Using analytical method of Regression, an equation that establishes

the relationship between customer satisfaction and authorized market share was

established.

This equation establishes the relationship between market share for authorized

service providers & the customer satisfaction.




VIM, PUNE 42

CUMMINS:

TYPE OF

CUSTOMERS

CHANDNI

CHOWK

PIRANGUT TALEGAON PIMPRI PUNE

CITY

CUSTOMERS

TAKING

AUTHORIZED

AMC

7 12 11 9 2

SATSIFIED

CUSTOMERS

WITH

AUTHORIZED

AMC

5 12 9 5 2

REGRESSION ANALYSIS:

X Y X2

Y2

XY

5 7 25 49 35

12 12 144 144 144

9 11 81 121 99

5 9 25 81 45

2 2 4 4 4

=33 = 41 = 279 = 399 = 327




VIM, PUNE 43

X = X /N= 6.6,

Y = Y /N= 8.2

Regression Equation is

Y-Y = byx (X- X )

Where byx = (N XY

-( X ) ( Y ))/ (N X 2-( X ) 2)

= 0.92

Putting this value in equation it becomes

Y-8.2= 0.92(X-6.6)

Hence final equation is:

Using this equation we can get to know that if Cummins wants to achieve total AMC

market share of 83 customers then it should have a customer satisfaction of nearly

100%.

Y=0.92X + 2.13




VIM, PUNE 44

KIRLOSKAR:

TYPE OF

CUSTOMERS

CHANDNI

CHOWK

PIRANGUT TALEGAON PIMPRI PUNE

CITY

CUSTOMERS

TAKING

AUTHORIZED

AMC

3 12 6 6 4

SATSIFIED

CUSTOMERS

WITH

AUTHORIZED

AMC

3 11 4 5 3

REGRESSION ANALYSIS:

X Y X2

Y2

XY

3 3 9 9 9

11 12 121 144 132

4 6 25 36 24

5 6 25 36 30

3 4 9 16 12

=26 = 31 = 180 = 241 = 207




VIM, PUNE 45

X = X /N= 5.2,

Y = Y /N= 6.2

Regression Equation is

Y-Y = byx (X- X )

Where byx = (N XY

-( X ) ( Y ))/ (N X 2-( X ) 2)

= 1.02

Putting this value in equation it becomes

Y-6.2= 1.02(X-5.2)

Hence final equation is:

Using this equation we can get to know that if Kirloskar wants to achieve total

authorized market share of 92 customers then it should have a customer satisfaction of

97%.

Y=1.02X + 1



LIMITATIONS




VIM, PUNE 46

LIMITATIONS

In any research, the researcher should ensure that the research does not

have a high degree of error. If no care is exercised in minimizing errors that

are likely to crop up at every stage then they are bound to assume phenomenal

proportions.

In this research also I have tried to minimize errors as much as

possible, but still there may be some errors due to the following reasons:

1. Non-response Error:

It is almost impossible to obtain data from each and every respondent

covered in the sample. There are always some respondents who refuse to give

any information. This error also occurs when the concerned managers are not

available.

2. Lack of knowledge:

This is caused when the concerned manager is not having correct

knowledge about the maintenance of diesel generator and the service provider.

3. Area Limitation:

This study was limited to Pune district only. Therefore the findings

may differ from other parts of India where I have not visited.



CONCLUSION




VIM, PUNE 47

CONCLUSION

1. Market Potential for the authorized AMC for diesel generator industry is good as

there is a good demand for diesel generators among the companies due to power crisis

which results in a good demand of AMC for diesel generators.

Expansion is going in almost every industry and to meet this expansion, they

need diesel generator sets and service is needed for these sets. The authorized service

providers of AMC can tap a large share of AMC market if they keep their customers

satisfied.

2. Another factor in the market of this AMC industry is that mechanical based

industries have the technical expertise and maintenance department in their own

company. So they do not want to take AMC for service as this will not be cost

effective to them.

3. The priority of attributes which helps customers in deciding which service is better

is cost, time and then person s empathy.

4. For Kirloskar Oil Engines Ltd.:

The authorized dealers of Kirloskar are the market leader in the Kirloskar

service.

5. For Cummins India Ltd.:

Trident Services, the authorized dealer of Cummins is the market leader in the

Cummins service.

6. For Greaves:

M.K. Services, the authorized dealer of Greaves is the market leader in the

Greaves service.




VIM, PUNE 48

7. Kirloskar has got better share in authorized AMC market than Cummins because it

is having more reach than Cummins due to better dealer network and also because o f

the higher level of satisfaction of customers with Kirloskar service than Cummins

service.

8. Annual maintenance contract without material is the preferred form of AMC with

the companies.

9. Majority of the companies prefer authorized service and the main reasons for their

preference are good service, good material and reliability.

Some companies do not prefer authorized service and the main reasons for

their non-preference of authorized service are high cost involved, availability of

trained workers and more time taken by authorized service providers to give service.

10. Many companies do self service as they have got trained workers, who can do the

maintenance of diesel generator sets. Also it leads to saving in cost.

11. Another important point in this industry is the customer relationship management.

Many companies are having long term relationships with the local service providers.

So these companies not like to switch to other authorized or local service providers.

12. Yearly payment is the most preferred form of payment for AMC by different

companies.

In numeric terms, the market potential for AMC of diesel generator sets is

more than Rs.25 crore in Pune district alone. From all this we can safely conclude that

there is a huge market potential for AMC of diesel generator sets.



RECOMMENDATIONS




VIM, PUNE 49

RECOMMENDATIONS

Customers will switch over to the authorized annual maintenance contract

if the cost involved in the service is competitive with the local service providers or

authorized service providers are able to provide value satisfaction in terms of

transparency, timely service and customer education.

The time taken in providing service to the customer should be minimized

so as to give quick & efficient service.

Authorized service providers should extend their reach by exploring sub

dealers/ representatives in industrial areas.

Another recommendation is that the diesel generator companies should do

more and more promotion of their service and the customers should be made aware of

the cost benefit advantages of taking service from the authorized company dealer.

The diesel generator companies should try to do customer relationship

management and maintain a good relationship with customers, which goes a long way

in maintaining good business relations.

The authorized service providers should focus on their service quality.

They should give a better service than their local counterparts & this should be their

USP.




VIM, PUNE 50

The authorized service providers should give a guarantee for their service.

For keeping the customers satisfied, the service providers should try to

understand the problems of customers by putting themselves in customer s shoes.



BIBLIOGRAPHY




VIM, PUNE 51

BIBLIOGRAPHY

BOOKS:

1. Dr. Kulkarni B.D., Research Methodology , Everest Publishing House, Pune,

(2002).

2. Mr. Kotler Philip, Marketing Management , Pearson Education Inc., (2005).

3. Mr. Beri G.C., Marketing Research , Tata McGraw-Hill Publishing

Company limited, New Delhi, (2004).

WEBSITES:

1. www.kirloskars.com

2. www.kirloskarapps.kirloskar.com

3. www.greavescotton.com

4. www.cat.com

5. www.cumminsindia.com

OPERATION AND MAINTENANCE MANUALS:

1. Cummins Diesel Engine , Bulletin No.3243786-02, (Jan.2003).

http://www.cumminsindia.com/

http://www.cat.com/

http://www.greavescotton.com/

http://www.kirloskarapps.kirloskar.com/

http://www.kirloskars.com/



APPENDIX



QUESTIONNAIRE

Name of the company :

Address :

Contact Person / Designation :

Phone No. :

Mobile No. :

DG Set is powered by an engine of the make

a) Cummins b) Kirloskar c) Caterpillar d) any other

What is KVA rating of the set?

Approximate Year of purchase:

Do you have AMC for DG Sets?

Yes No

If yes, is it for complete set or for part of DG Set?

Who is the service provider?

For Engine: For Electrical:

For entire Set:

Which type of AMC they provide?

a) Comprehensive b) Without Material

In case of breakdown how fast is his service?

<2 hrs. 2-4 hrs 4-8 hrs

<24 hrs >24 hrs

Are you fully satisfied with your current service provider?



Yes No

If no, what are issues of dissatisfaction?

Cost Time Person s Empathy Improper Service

Do you prefer an authorized AMC service provider?

Yes No

Reasons:

Good Material Reliability Cost Good Service

Availability of Trained Workers Guarantee

What are the existing terms and conditions?

Monthly Quarterly Half Yearly Yearly

As per work



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