Sales and Service Hero MotoCorp Ltd. 2011

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INTRODUCTION

Customer service

Customer service is the provision ofservice to customers before, during and after a

purchase.

According to Jamier L. Scott. (2002), Customer service is a series of activities designed

to enhance the level of customer satisfaction that is, the feeling that a product or service

has met the customer expectation."

Its importance varies by product, industry and customer; defective or broken merchandise

can be exchanged, often only with a receipt and within a specified time frame. Retail

stores will often have a desk or counter devoted to dealing with returns, exchanges and

complaints, or will perform related functions at the point of sale.

Customer service may be provided by a person (e.g., sales and service representative), or

by automated means called self-service. Examples of self service are Internet sites.

However, In the Internet era, a challenge has been to maintain and/or enhance the

personal experience while making use of the efficiencies of online commerce. Writing in

Fast Company, entrepreneur and customer systems innovator Micah Solomon has made

the point that "Online customers are literally invisible to you (and you to them), so it's

easy to shortchange them emotionally. But this lack of visual and tactile presence makes

it even more crucial to create a sense of personal, human-to-human connection in the

online arena."

Customer service is normally an integral part of a companys customer value proposition.

In their book Rules to Break and Laws to Follow, Don Peppers and Martha Rogers, Ph.D.

write that "customers have memories. They will remember you, whether you remember

them or not." Further, "customer trust can be destroyed at once by a major service

problem, or it can be undermined one day at a time, with a thousand small

demonstrations of incompetence."

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From the point of view of an overall sales process engineering effort, customer service

plays an important role in an organization's ability to generate income and revenue. From

that perspective, customer service should be included as part of an overall approach to

systematic improvement.

Some have argued that the quality and level of customer service has decreased in recent

years, and that this can be attributed to a lack of support or understanding at the executive

and middle management levels of a corporation and/or a customer service policy.

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Need and Importance of Study-

Increasing competition, ever growing market, easy availability of the finances and

increasing population of young executives, with huge disposable incomes, over the past

few years has substantially increased the sales in the automobile industry. Also, the

competition among the dealers of the products has increased with each trying to

maximize their customer base. This makes it imperative for the dealers to provide the

best of the services and exceed the customer expectations to achieve customer delight and

loyalty.

The study tries to understand the key service parameters and reflect upon the

dysfunctional areas, thus providing the dealer with an insight into the level of customer

satisfaction and changing trends of the customer expectations.

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SCOPE OF THE PROJECT

The study aims to measure satisfaction level of the dealers regarding Hero Moto Corp

Ltd. (Formerly Hero Honda Motors Ltd.) (Motors Pvt. Ltd). The area within which

the study was conducted regarding the information the primary data is collected in the

form of questionnaire collected from the dealers in Karimnagar district. To sum up the

project had within the scope of the study in the area of EFFECTIVENESS of SALES

and SERVICE of Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.)

(Bharadwaj Motors Pvt. Ltd) dealers in Karimnagar district for a particular time

(2012).The research measures the experiences of customers. Defines and analyses the

experiences based on key deliverables. Gains insights into Customer expectations

.

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OBJECTIVE OF THE STUDY

To study and understand the key service parameters using Customer Satisfaction and

reflect upon the low performing areas in Hero Moto Corp Ltd. (Formerly Hero Honda

Motors Ltd.).

To study about the customer satisfaction on the services provided by the dealers.

To study the opinion of the customers regarding the availability and cost of spare

parts ofHero Moto Corp Ltd.

To study the opinion of the owners of bikes regarding its features like mileage,

price etc.

To study the effect of advertisement on the customers to promote the product.

To study the customer satisfaction with usage of their bikes.

To study the information resources that the customer using before purchasing the

bike.

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RESEARCH METHODOLOGY

Date Sources:

Primary Data:

The data is collected directly from each and every customer.

Pilot Survey

A pilot survey was conducted to understand the factors, which would positively

influence the customer. Personal Interviews totaling 20 were conducted for the sales

team, potential customers and the existing customers of Hero MotoCorp Ltd.

(Formerly Hero Honda Motors Ltd.) which finance: which finance: (Bharadwaj

Motors Pvt. Ltd). The factors scoring high in the interviews were considered to be the

key deliverables.

Survey Research:

The research was done to learn about peoples preferences and satisfaction of the

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

Ltd) customer.

Research Tool:

Questionnaire (primary tool- attachment 1)

Interview through questionnaire method was employed for the research purpose. The

questionnaires were individually administered to each customer to ensure minimum

scope for faulty data entry and error of understanding. This method also gave the

interviewer the scope of entering into a dialogue and understanding the customers

perception better.

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The questionnaire tried to capture the responses of the customers mainly on the key

deliverables, derived from the pilot survey conducted, and a few questions have been

included to gauge the level of satisfaction and to gain insight into customer expectations.

Unstructured interview

The interview complemented the primary research tool and helped deliver into details of

responses provided by the customers. This not only validated the responses of the

customers but also helped the interviewer understand the expectations of the customers.

Sampling Unit: In this study the sampling unit used is the existing customer base of

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

Ltd). Selection is made from the list of Customers during the last one year.

Sampling Size: Sample size was chosen to be 100.

Sampling Procedure: Simple Random Sampling.

In simple random sampling, each member of the target population has the

same chance of being selected for participation in the study. For a sample to truly be a

simple random sample we need to develop a list or sampling frame that includes almostall of the population, then from this we randomly pull names from the sampling frame

using some kind of random method such as a random number table or a random number

generator. Finally, numbers are assigned to all members of the population and pull the

names of those members whose numbers are pulled from the table or generator.

The biggest advantage to a simple random sample is that we get a pretty good

unbiased sample fairly easily. The biggest downside is that we may not get all elements

of the population that are of interest.

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Limitations:

The study is restricted in scope of owing to the following limitations:

Due to constraint of time only city of karimnagar is selected and so it cannot

claim to be a comprehensive study of the population.

The sample size is restricted to 100 respondents.

When the buyers are busy we cant get accurate data from them.

According to the time limit of our project we can cover only the some area.

During survey some respondents may not give answer in a proper manner.

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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 automotive

industry 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 buildingmotorcycles 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

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component and automobile manufacturing growth has accelerated to meet domestic and

export demands.

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) races

were 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. Gottiiebi 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

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

Until 1958, API and Enfield were the sole producers.

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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

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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.

COMPANY 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.

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Technology

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

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

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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

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

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.

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This mission is what drives Hero Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

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

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

Director

15. Mr. Ravi Nath Non-executive & Independent

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 Director2 Hero Honda Finlease Limited Chairman and Director

3 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 signed

Shareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

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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

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

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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

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


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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

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

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 new

corporate 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 "Most

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2010 Trusted 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

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 category

IndiaTimes 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

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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

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.

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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

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, and

education 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:

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

Constructing metalled roads and connecting these villages to the National

Highway (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.

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

on biogas plants.

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

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

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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

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 responsibleenterprise 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

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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.

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

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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.

Continuous improvements in safety performance through precautions besides

participation and training of employees.

INTRODUCTION ABOUT BHARADWAJ AUTO TECH PVT LTD DEALER

PROFILEBharadwaj auto tech pvt ltd is dealership type of business. BHARADWAJ AUTO

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

owner name is Mr. Bharadwaj the firm is located at rampur in Karimnagar.

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:

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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 Bharadwaj motors in first in sales and best in service.

They treat customer, is the very important person at Bharadwaj motors customer

satisfaction is 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 Bharadwaj motors the customer is the boss.

SALES STRATEGY OF BHARADWAJ AUTO TECH PVT LTD:Average they are selling 25 vehicles per day. Bharadwaj 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 Bharadwaj 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.

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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

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

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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 Bharadwaj motors in

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

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

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

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

SOCIAL SERVICE ACTIVITIES

Bharadwaj Motors participates in social service activities. TheBharadwaj 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.

CUSTOMER SATISFACTION

Concept Identification-

As organizations become increasingly customer focused and driven by demand, the need

to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the

most effective way to achieve customer loyalty. Customer satisfaction and customer

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loyalty share many similar traits. Customer value is the customers perception of the ratio

of benefits to what he or she gives to obtain those benefits. The customer Value Triad is a

framework used to understand what it is that customers want. The framework consists of

three parts: (1) perceived product quality, (2) value-based pricing, and (3) perceived

service quality.

Customers are satisfied, when value meets or exceeds expectations. If their expectations

of value are not met, there is no chance of satisfying them. Figuring out what the

customers want, however, is a difficult and complex process. To be able to create and

deliver customer value is important to understand its components. On the most basic

level, value from a customers perspective is the ratio of benefits to the risks being taken

while buying the product.

UNDERTAKING THE KEY DELIVERABLES

Human interaction

Customer service is a task, other than proactive selling, that involves interactions with

customers in person, by telecommunications, or by mails. It is designed, programmed and

communicated with two goals in mind: operational efficiency and customer satisfaction.

A typical categorization of the services based on who performs the action within the

services cape can be

1. Self-service (customer only)- ATM, Movie Theater

2. Interpersonal services-banks, restaurants

3. Remote services (employee only) telephone mail order desk.

The superiority of the product has to be complemented with a high quality of services,

which gives a competitive edge to the organization. A high standard of service is what

sets apart one organization from another, and ultimately attracts the customer to the

doorsteps.

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Services at the showroom fall in the second category where there is a high complexity of

interaction and hence it becomes necessary for the personnel to be adept in responding to

the customer cognitively, emotionally and psychologically.

The various aspects and characteristics of service provision, which have been taken into

consideration of a customer bikee team/ sales consultant are

1. Politeness

2. Courteousness

3. Product knowledge

4. Process knowledge

5. Communication skills

6. Responsiveness and supportiveness.

Product information

Consumers obtain information about products and services from personal sources (friends

and experts) and from the non-personal sources (mass and selective media).

When purchasing goods, consumers employ both personal and non-personal sources

since both effectively convey information about search qualities.

This is especially true for high involvement products such as bikes, two-wheelers,

durables etc.

Mass media can convey information about search qualities but can convey a little about

experience qualities. Also, mass media cannot elaborate on the finer aspects and hence it

becomes imperative for a showroom to provide the complete information about the

product, pricing and the offers.

The showroom can provide information by adopting the below mentioned list

1. Broachers, leaflets and pricelists easy reference and handy.

2. Sales consultant

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3. Test drive hands-on experience.

Broachers, leaflets and pricelist are the basic sales tools, which elaborately give the

product specifications, promotional offers and schemes at hand and the pricing of various

models at display.

Sales consultant has to be knowledgeable to understand the nuances of the specification

and should be able to convey the same to the prospective customers. The sales

consultants handle the various queries (technical and commercial) and clears the

impending doubts of the inquisitive customer.

Test drive the last part in providing information to the customer and gives the customer

a hands on experience of the product performance

Time and Promptness.

One of the factors, which has to match the eagerness and the enthusiasm of the customer

is quick and prompt delivery of the service.

After the customer has made a decision to go ahead with the purchase the next logical

sequence of steps would be a process the required documents, book the order, confirm theorder, inform the customer about the date of delivery and prepare the required documents

for the delivery of the vehicle.

Order booking-This is the process where the onus lies completely on the personnel

dealing with the customer. The customer has to be given the right information regarding

the documents, time taken to process the documents and close the deal.

It is also the responsibility of the various departments involved to provide a quick serviceto ensure that the customer has a good and satisfying experience.

Delivery on date and time- once the product is delivered it can be assumed that a sale has

been done. The paper work to be bikeried out has to be done at a quick pace. This can be

observed in the responses of those 25% of customers who reported a slack in the delivery

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process. Deviation from promised date and time can lead to a lot of inconvenience to the

customers, thereby leading to a bad experience.

Consistency

Nothing is consistent by change.

Consistency is a matter of experience. The expectation of service grows from every

experience the customer has during the sales process. For eg., the customer would expect

the same responsiveness from the sales person during the order processing as it was

during the pre-sales, any aberration would create a sense of insecurity and would thereby

breach the bond of trust established between them.

Inconsistency in service is caused by ever changing expectations of the customer. This

poses a challenge of maintaining the quality of service in every encounter. The

expectations are not just related to the profile of the customer but also to the occasion and

moods, service firms find it difficult to meet the expectations of the customers all the

time without affecting the quality of service.

Furthermore, the characteristic of perish ability makes the service non-storable. They

exist while they are being delivered / consumed. This poses the management, problem of

managing the match and capacity planning.

In the analysis we have chosen to analyze the consistency maintained in offering services

relating to the human interaction as well as the processing of the documents. This

becomes important in the light of these services being offered in pre-sales and post sales

scenario, and gauging the consistency levels at these two stages gives a fair idea of the

consistency maintained in the services offered.

Consistency in human interaction is observed in the pre-sales, order processing and post

sale stages.

Convenience

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The objective of the customer bikee personnel is to provide convenient and comfortable

service and not to push the customer to make the purchase. While basic facilities are

made available, the customer bikee personnel have to make sure that customer doesnt

feel any inconvenience while the sales process is on.

Convenience does not only refer to the physical comforts such as seating, availability of

rest rooms etc. but also to mental convenience a in helping out the customer to reach a

decision, providing relevant information to the customer for evaluating the various

options, making sure that it is one-stop shop (additional accessories being made available

like stereo systems, reverse gear buzzers etc.) explain the basic functionally of the

product etc.

It is helpful to offer customers information in printed form; good signing is very

important at service delivery points and on self-service equipment. The customer bikee

personnel have to make the first move and approach the visitors instead of making the

visitors ask for some guidance. The visitors have to be communicated how to use and

how not to use the facilities at offer.

The concentration has been focused on checking the convenience of the customers on

aspects such as

1. Timings

2. Test drive

3. Availability of accessories

4. Sufficient fuel to reach the nearest petrol station

5. Wide range of finance options made available at the showroom

6. Imparting the basic mechanical functionalities of the bike.

CUSTOMER SATISFACTION

AN INSIGHT

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According to Harold E Edmondson Customer Satisfaction seems to appear in print

more frequently than any other catch phrase used to describe a new found magic for

industrial success. Before we proceed in to the study of the dynamics of Customer

Satisfaction it is important to know about, who a customer is and what satisfaction really

means.

Who really is a Customer?

The question of defining who your customers are seems fairly easy particularly if you

have segmented your market properly and understand who you are trying to

satisfy. However subtlety that frequently goes undetected by many firms is that is that

customer set can be divided into two parts, the apparent customer and the user. The

apparent customer is the person or group of people who decide what product to buy and

basically have control over the purse strings. The user is a person or group who

physically uses the product or is the direct recipient of a service.

What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple. However as

with customer there is a subtlety that needs addressing. Satisfaction by most definitions

simply means meeting the customers requirement.

Customer satisfaction is a concept that more and more companies are putting at the heart

of their strategy, but for this to be successful theyre needs to be clarity about, what

customer satisfaction means and what needs to happen to drive improvement. Without

this, there is a risk that customer satisfaction becomes little more than a good intention,

with confused objectives failing to address the real issues for customers, one helpful way

to look at the problem is to rephrase the objectives: set the sights on helping the

customers meet their goals.

Customer satisfaction can be defined in many different ways. Finding the right way for a

company depends on understanding your customer and on having a clear vision of the

role that customer satisfaction is to play in the strategy. For example, a focus on customer

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satisfaction can work alongside existing segmentations to support revenue generation

from high value customers or it can be a company-wide objective rooted in the brand

values. For the former, it may be sufficient to focus on improving customer service, but

for the latter a broader definition of customer satisfaction is necessary, closer akin to

corporate reputation.

Whatever the strategy for customer satisfaction, it must at least include getting the basics

right. Failing to achieve this can destroy the reputation as well as losing valuable

customers. Every customer, regardless of their economic worth to the business, has the

power to influence positively or negatively a companys reputation. Once the

objectives for the customer satisfaction strategy are defined there are a number of steps

we can take to make sure the focus on customer satisfaction is effective.

Building a company around Customer Satisfaction -

With the increase in customers demands and competition it has become a lot more

important to base the entire company on customer service. When doing this one must first

realize that every member of an organization plays an active role in customer

service. This includes both external customers and internal customers within a company.

Customer focused organizations focus both on customer satisfaction and

profit. Achieving customer satisfaction generates the profit. In these organizations top

management has frequent contacts with external customers. The top management uses

consultative, participative, and supportive management styles to get through to the

customer. The staff focuses all of its attention on satisfying the customers

needs. However, the managements job is to provide the staff with support necessary to

achieve these goals. The other department and staff in the organization that do not have

direct contact with the external customers deal exclusively with internal customer

satisfaction.

The Influence of the salesperson in Customer Satisfaction-

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In an article titled, The influence of salesperson selling behavior on customer

satisfaction with products, Brent G.Goff and James S. Boles examine the effects of non-

product related construct on customer satisfaction with major retail purchases such as

automobiles. The article states that salespersons selling orientation- customer orientation

(SOCO) will affect not only consumer satisfaction with the salesperson and dealer, but

also indirectly, satisfaction with the product or manufacturer.

In the perspectives of both the retailer and the manufacturer, customer satisfaction

represents an important issue because it relates to several desirable outcomes. Customer

satisfaction leads to future purchases, and repeated purchases of the same product from

the same source. In other words, it helps a firm retain its present customers and build

loyalty. By helping a buyer obtain product information and providing guidelines aboutwhat should be expected during the buying process and use of a product, a salesperson

may influence customer expectations concerning the product. Thereby this may reduce

the likelihood of dissatisfaction (Grewal and Sharma, 1991). A successful salesperson

tailors to the needs of each individual customer. By being customer-oriented, a

salesperson is likely to identify with needs of the customer, enabling the salesperson to

match his or her presentation to those requirements of the customer.

Internal Marketing how it affects Customer Satisfaction

Successful companies make every effort to ensure satisfaction to their customer by

focusing all organizational efforts of the company on providing superior customer

service. By doing this these companies hope to retain their existing customers and attract

new ones. Only angle of customer satisfaction commonly overlooked is the internal

aspect.

The internal customer or employee plays a vital role in achieving customer satisfaction

and loyalty. Some firms do not understand that the treatment of internal customers

becomes the external customers perception of the company. A firms employees or other

departments within the organization make up its internal customers. Their job

performance affects the firms ability to deliver superior product and customer service

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stores will often have a desk or counter devoted to dealing with returns, exchanges and

complaints, or will perform related functions at the point of sale.

Customer service may be provided by a person (e.g., sales and service representative), or

by automated means called self-service. Examples of self service are Internet sites.

However, In the Internet era, a challenge has been to maintain and/or enhance the

personal experience while making use of the efficiencies of online commerce. Writing in

Fast Company, entrepreneur and customer systems innovator Micah Solomon has made

the point that "Online customers are literally invisible to you (and you to them), so it's

easy to shortchange them emotionally. But this lack of visual and tactile presence makes

it even more crucial to create a sense of personal, human-to-human connection in the

online arena."

Customer service is normally an integral part of a companys customer value proposition.

In their book Rules to Break and Laws to Follow, Don Peppers and Martha Rogers, Ph.D.

write that "customers have memories. They will remember you, whether you remember

them or not." Further, "customer trust can be destroyed at once by a major service

problem, or it can be undermined one day at a time, with a thousand small

demonstrations of incompetence."

From the point of view of an overall sales process engineering effort, customer service

plays an important role in an organization's ability to generate income and revenue. From

that perspective, customer service should be included as part of an overall approach to

systematic improvement.

Some have argued that the quality and level of customer service has decreased in recent

years, and that this can be attributed to a lack of support or understanding at the executive

and middle management levels of a corporation and/or a customer service policy.

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Instant feedback

Recently, many organizations have implemented feedback loops that allow them to

capture feedback at the point of experience. For example, National Express, one of the

UK's leading travel companies invites passengers to send text messages whilst riding the

bus. This has been shown to be useful as it allows companies to improve their customer

service before the customer defects, thus making it far more likely that the customer will

return next time.

Setting the right KPIs

A challenge working with Customer Service is to ensure that you have focused your

attention on the right key areas, measured by the right Key Performance Indicator. There

is no challenge to come up with a lot of meaningful KPIs, but the challenge is to select a

few which reflects your overall strategy. In addition to reflecting your strategy it should

also enable staff to limit their focus to the areas that really matter. The focus must be of

those KPIs, which will deliver the most value to the overall objective, e.g. cost saving,

service improving etc. It must also be done in such a way that staff sincerly believe that

they can make a difference with the effort.

One of the most important aspects of a customer service KPI is that of what is often

referred to as the "Feel Good Factor". Basically the goal is to not only help the customer

have a good experience, but to offer them an experience that exceeds their expectations.

Several key points are listed as follows:

1. Know your product - Know what products/service you are offering back to front. In

other words be an information expert. It is okay to say "I don't know", but it should

always be followed up by... "but let me find out" or possibly " but my friend knows!"

Whatever the situation may be, make sure that you don't leave your customer with an

unanswered question.

2. Body Language/Communication - Most of the communication that we relay to others

is done through body language. If we have a negative body language when we interact

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with others it can show our lack of bikee. Two of the most important parts of positive

body language are smiling, and eye contact. Make sure to look your customers in the eye.

It shows that we are listening to them, not at them. And then of course smiling is just

more inviting than someone who has a blank look on their face.

3. Anticipate Guest Needs - Nothing surprises your customer more than an employee

going the extra mile to help them. Always look for ways to serve your customer more

than they expect. In doing so it helps them to know that you bikee and it will leave them

with the "Feel Good Factor" that we are searching for.

Standardization

There are few standards on this topic. ISO and The International Customer Service

Institute (TICSI) have published the following ones:

ISO 9004:2000, on performance improvement

ISO 10001:2007, on customer service conduct

ISO 10002:2004, on quality management in handling customer complaints

ISO 10003:2007, on dispute resolution

The International Customer Service Standard (TICSS)

There is also an Information Technology service management standard: ISO/IEC

20000:2005. Its first part concerns specifications and its second part the code of practice.

Sales

A sale is the pinnacle activity involved in selling products or services in return for money

or other compensation. It is an act of completion of a commercial activity.

A sale is completed by the seller or the provider of the goods or services to an acquisition

or appropriation or request followed by the passing of title (property or ownership) in the

item and the application and due settlement of a price, the douche of or any claim upon

the item. The purchaser, though a party to the sale, does not execute the sale, only the

seller does that. To be precise the sale completes prior to the payment and gives rise to

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the obligation of payment. If the seller completes the first two above stages (consent and

passing ownership) of the sale prior to settlement of the price, the sale is still valid and

gives rise to an obligation to pay.

Sales techniques

The sale can be made through

Direct sales, involving person to person contact

Pro forma sales

Agency-based

o Sales agents (real estate, manufacturing)

o Sales outsourcing through direct branded representation

o Transaction sales

o Consultative sales

o Complex sales

o Consignment

o Telemarketing or telesales

o Retail or consumer

Traveling salesman

o Door-to-door

o To tourists on crowded beach

Request for proposal An invitation for suppliers, through a bidding process, to

submit a proposal on a specific product or service. An RFP is usually part of a

complex sales process, also known as enterprise sales.

Business-to-business Business-to-business sales are much more relationship

based owing to the lack of emotional attachment to the products in question.

Industrial/Professional Sales is selling from one business to another

Electronic

o Web Business-to-business andbusiness-to-consumer

o Electronic Data Interchange (EDI) A set of standard for structuring

information to be electronically exchanged between and within businesses

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Indirect, human-mediated but with indirect contact

o Mail-order

Sales Methods:

o Selling technique

o SPIN Selling

o Consultative selling

o Sales enablement

o Solution selling

o Conceptual Selling

o Strategic Selling

o Sales Negotiation

o Reverse Selling

o Paint-the-Picture

o The take away

o Large Account Management Process chocolate kisses

Sales agents

Agents in the sales process can be defined as representing either side of the sales process;

for example:; Sales broker or 1.Seller agency]] or seller agent This is a traditional role

where the salesman represents a person or company on the selling end of the deal 2.

Buyers broker or [[Buyer brokerage: This is where the salesman represents the consumer

making the purchase. This is most often applied in large transactions. 3. Disclosed dual

agent: This is where the salesman represents both parties in the sale and acts as a

mediator for the transaction. The role of the salesman here is to oversee that both parties

receive an honest and fair deal, and is responsible to both. 4. Transaction broker: This is

where the salesperson doesn't represent either party, but handles the transaction only.

This is where the seller owes no responsibility to either party getting a fair or honest deal,

just that all of the papers are handled properly. 5. Sales outsourcing: This is direct

branded representation where the sales reps are recruited, hired, and managed by an

external entity but hold quotas, represent themselves as the brand of the client, and report

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all activities (through their own sales management channels) back to the client. It is akin

to a virtual extension of a sales force. (see Sales Outsourcing entry) 6. Sales managers: It

is the goal of a qualified and talented sales manager to implement various sales strategies

and management techniques in order to facilitate improved profits and increased sales

volume. They are also responsible for coordinating the sales and marketing department as

well as oversight concerning the fair and honest execution of the sales process by his

agents 7.Salesmen: The primary function of professional sales is to generate and close

leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and

therefore turn prospective customers into actual ones. The successful questioning to

understand a customer's goal and requirements relevant to the product, the further

creation of a valuable solution by communicating the necessary information that

encourages a buyer to achieve their goal at an economic cost is the responsibility of the

salesperson or the sales engine (e.g. internet, vending machine etc). A good salesman

should never mis-sell or over-evaluate the customer's requirements.

The sales and marketing relationship

Marketing and sales are very different, but have the same goal. Marketing improves the

selling environment and plays a very important role in sales. If the marketing department

generates a potential customers list, it can be beneficial for sales. The marketing

department's goal is to increase the number of interactions between potential customers

and company, which includes the sales team using promotional techniques such as

advertising,sales promotion,publicity, andpublic relations, creating new sales channels,

or creating new products (new product development), among other things. It also includes

bringing the potential customer to the company's website for more information, or to

contact the company for more information, or interact with the company via social media

such as Twitter,Facebook, ablog, etc.

The relatively new field of sales process engineering views "sales" as the output of a

larger system, not just that of one department. The larger system includes many

functional areas within an organization. From this perspective, sales and marketing

(among others, such as customer service) are labels for a number of processes whose

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inputs and outputs supply one another to varying degrees. Considered in this way, to

improve the "output" (namely, sales) the broader sales process needs to be studied and

improved as would any system, since the component functional areas interact and are

interdependent.

In most large corporations, the marketing department is structured in a similar fashion to

the sales departmentand the managers of these teams must coordinate efforts in order to

drive profits and business success. For example, an "inbound" focused campaign seeks to

drive more customers "through the door" giving the sales department a better chance of

selling their product to the consumer. A good marketing program would address any

potential downsides as well.

The Sales department's goal would be to improve the interaction between the customer

and the sales facility or mechanism (example, web site) and/or salesperson. Sales

management would break down the selling process and then increase the effectiveness of

Documents

Sales and Service Hero MotoCorp Ltd. 2011