1

FINAL REPORT ON CAPSTONE PROJECT

PROJECT TITLE


TO STUDY THE IMPACT OF CRM TECHNIQUES ADOPTED
BY SMALL CAR SEGMENT DEALERS IN THE REGION OF
PUNJAB OF THE DISTRICTS OF JALANDHAR, NAWASHER
AND LUDHIANA



Submitted to Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION








Submitted By: Submitted To:

Group No : R152 Mr. Manish Kumar

Ashwani Kumar(10807616) Mr. Pushpinder Singh

Mithun Saxena(10810750) Dr. Girish Taneja

Munish vardhan (10810337)
2


TO WHOMSOEVER IT MAY CONCERN



This is to certify that the project report titled to study the impact of crm techniques
adopted by small car segment dealers in the region of punjab of the districts jalandhar
ludhiana and nawasher carried out by Ashwani Kumar , Mithun Saxena , Munish
Vardhan has been accomplished under my guidance & supervision as a duly registered
MBA student of the Lovely Professional University, Phagwara. This project is being
submitted by them in the partial fulfillment of the requirements for the award of the Master of
Business Administration from Lovely Professional University.

Thier dissertation represents thier original work and is worthy of consideration for the award
of the degree of Master of Business Administration.




___________________________________

(Name & Signature of the Faculty Advisor)

Date:
3


DECLARATION






I, "Ashwani Kumar , hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this
dissertation has been given due acknowledgement and listed in the reference section.



Ashwani Kumar

10807616

Date: May 3, 2010
4


DECLARATION






I, Mithun Saxena, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this
dissertation has been given due acknowledgement and listed in the reference section.






Mithun Saxena

10810750

Date:-3 May 2010
5


DECLARATION






I, Munish Vardhan,, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this
dissertation has been given due acknowledgement and listed in the reference section.






Munish Vardhan

10810337

Date:-3 May 2010
6


ACKNOWLEDGEMENTS



We place on record our sincere thanks to one and all who at different occasions given
valuable suggestions for the development of the project. Our sincere thanks to our honorable
professor Mr. Manish Kumar who as our Faculty Guide has always motivated us to put our
best foot forward by setting high standards for us.



We specially extend our grateful thanks to Mr. Girish Taneja and Mr. Pushpinder
Singh for providing us the valuable suggestions and precious recommendation at different
phases during our research project which help us in making it a success. We want to extend
our sincere gratitude to both Panel heads who has been the guiding force throughout this
research project.

We also thank our peers for being so supportive as well as being so cooperative in
sharing their valuable views and discussing about relevant points while preparing this report.






Ashwani Kumar

Mithun Saxena

Munish Vardhan
7


Table of Contents

Sr. No. CHAPTERS Page No.

1. INTRODUCTION TO CRM 8-18

2. INDUSTRY ANALYSIS 19-21

3. PRICING STRATEGY ( HYUNDAI , MARUTI SUZUKI AND TATA) 21-23

4. AUTOMOBILE DEALERS IN INDIA 24

5. LIST OF DEALERS IN JALANDHAR, LUDHIANA AND NAWANSHER 25-29

6. TOOLS OF CRM 30

7. RESEARCH METHODOLOGY 31-33

8. LITERATURE REVIEW AND REFRENCES 33-36

9. QUESTIONNAIRE 37-40

10. ANALYSIS AND DATA-INTERPRETATION 41-90

11. FINDINGS 91

12. LIMITATIONS 92

13. RECOMMENDATIONS AND CONCLUSION 93-94

14. REFERENCES 95

8




What is Customer Relationship management?



Customer relationship management is creating a team relationship among sales,
marketing, and customer support activities within an organization. Another narrow, yet
relevant, viewpoint is to consider CRM only as customer retention in which a variety of after
marketing tactics is used for customer bonding or staying in touch after the sale is made.

Shani and Chalasani define relationship marketing as an integrated effort to
identify, maintain, and build up a network with individual consumers and to
continuously strengthen the network for mutual benefit of both sides, through
interactive, individualized and value-added contacts over a period of time.

The core theme of all CRM and relationship marketing perspectives is its focus on co-
operative and collaborative relationships between the firm and its customers, and/or other
marketing actors. CRM is based on the premise that, by having a better understanding of the
customers needs and desires we can keep them longer and sell more to them.

There are three parts of application architecture of CRM:


operational - automation to the basic business processes (marketing, sales, service)

analytical - support to analyze customer behavior, implements business intelligence
alike technology
co operational - ensures the contact with customers (phone, email, fax, web...)

Improving customer service

CRMs are claimed to improve customer service. Proponents say they can improve customer

service by facilitating communication in several ways:


Provide product information, product use information, and technical assistance on web
sites that are accessible 24 / 7

Help to identify potential problems quickly, before they occur

Provide a user-friendly mechanism for registering customer complaints (complaints that
are not registered with the company cannot be resolved, and are a major source of customer
dissatisfaction)
9





Provide a fast mechanism for handling problems and complaints (complaints that are
resolved quickly can increase customer satisfaction)

Provide a fast mechanism for correcting service deficiencies (correct the problem before
other customers experience the same dissatisfaction)

Identify how each individual customer defines quality, and then design a service strategy
for each customer based on these individual requirements and expectations

use internet cookies to track customer interests and personalize product offerings
accordingly

use the internet to engage in collaborative customization or real-time customization



There are a number of reasons why CRM has become so important in the last 10
years. The competition in the global market has become highly competitive, and it has
become easier for customers to switch companies if they are not happy with the service they
receive. One of the primary goals of CRM is to maintain clients. When it is used effectively,
a company will be able to build a relationship with their customers that can last a lifetime.
Customer relationship management tools will generally come in the form of software. Each
software program may vary in the way it approaches CRM. It is important to realize that

CRM is more than just a technology.

Customer support is directly connected to CRM. If a company fails to provide quality
customer support, they have also failed with their CRM system. When a customer makes
complaints, they must be handled quickly and efficiently. The company should also seek to
make sure those mistakes are not repeated. When sales are made, they should be tracked so
that the company can analyze them from various aspects. It is also important to understand
the architecture of Customer relationship management. The architecture of CRM can be
broken down into three categories, and these are collaborative, operational, and analytical.
The collaborative aspect of CRM deals with communication between companies and their
clients
10






Privacy and ethical concerns

CRMs are not however considered universally good - some feel it invades customer privacy
and enable coercive sales techniques due to the information companies now have on
customers - see persuasion technology. However, CRM does not necessarily imply gathering
new data, it can be used merely to make "better use" of data the corporation already has. But
in most cases they are used to collect new data.





































Key CRM principles

Differentiate Customers: All customers are not equal; recognize and reward best customers
disproportionately. Understanding each customer becomes particularly important. And the
same customers reaction to a cellular company operator may be quite different as compared
to a car dealer. Besides for the same product or the service not all customers can be treated
alike and CRM needs to differentiate between a high value customer and a low value
customer.

11





What CRM needs to understand while differentiating customers is?

- Sensitivities, Tastes, Preferences and Personalities

- Lifestyle and age

- Culture Background and education

- Physical and psychological characteristics




Differentiating Offerings
Low value customer requiring high value customer offerings

Low value customer with potential to become high value in near future

High value customer requiring high value service

High value customer requiring low value service










S
e
r
v
i
c
e

R
e
q
u
i
r
e
m
e
n
t





High Low value customers who
Require high levels of service
Must either purchase the higher
level of service or become our


High value customers who
require a high level of
service are maintained
without expanding the costly
offering to the entire
customer population

Low

Low
High


12






Keeping Existing Customers

Grading customers from very satisfied to very disappoint should help the organization in
improving its customer satisfaction levels and scores. As the satisfaction level for each
customer improve so shall the customer retention with the organization.

Maximizing Life time value

Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger
points by customer, marketers can maximize share of purchase potential. Thus the single
adults shall require a new car stereo and as he grows into a married couple his needs grow
into appliances.

Increase Loyalty

Loyal customers are more profitable. Any company will like its mind share status to improve
from being a suspect to being an advocate.

Company has to invest in terms of its product and service offerings to its customers. It has to
innovate and meet the very needs of its clients/ customers so that they remain as advocates on
the loyalty curve. Referral sales invariably are low cost high margin sales.




Summarizing CRM activities:

The CRM cycle can be briefly described as follows:

1. Learning from customers and prospects, (having in depth knowledge of customer)

2. Creating value for customers and prospects

3. Creating loyalty

4. Acquiring new customers

5. Creating profits
13







Learning from
customers &

Creating

Profits

Acquiring new

Fig.3
customers 1

5




3 Creating value

CRM Activities 4 for customers &
prospects


Creating loyal

2 customers



Customer Relationship Life Cycle

CRM facilitates closed- loop customer interactions through all phases of the customer relation
life cycle including:





1. Customer Engagement 2. Business Transaction

Marketing Planning and

Campaign Management
Order Acquisition



Telemarketing and Lead
Internet Pricing and

Generation
Configuration



Opportunity Management
E-Selling



Sales Activity and Contact
Telesales



Management
Field Sales




Customer Segmentation,
Profitability Analysis



Product, and Service Profiling




Collaborative

Content
One Step Buying and Selling






Management














3. Order Fulfillment

Complete Order Life Cycle
Process

Real-Time Availability Checks

Contract, Billing, and Financials
Management

Fulfillment Visibility and Order
Tracking




Customer Engagement
14


















4. Customer Service

Interaction Center

Internet Customer Self-Service

Service Management

Claims Management

Field Service -- Mobile Service

Field Service -- Dispatch

Integration of Marketplace
Services


Marketing Planning and Campaign Management -- Enables complete marketing
campaigns, including content development, audience definition, market segmentation,
and communications

Telemarketing and Lead Generation -- Facilitates customer segmentation, lead
qualification, call list management, and monitoring of campaign progress by using
integrated analytical CRM functionality

Opportunity Management -- Provides sales tracking and sales forecasting; helps
plan sales approaches, identify key decision makers, and estimate potential-to-buy
and potential closing dates
15


Sales Activity and Contact Management -- Organizes daily workloads and
customer contact information for display in calendar application; provides links to
Business Intelligence reporting capabilities

Business Transaction

In the business transaction phase of the relationship life cycle Customer Relationship

Management supports the following key functional areas:

Order Acquisition -- Enables planning, organizing, and implementation of sales
strategy; monitors sales pipeline, sales portfolio, and sales budget; facilitates
coordination of budgets, forecasts, and reports on product and pricing trends

Internet Pricing and Configuration -- Delivers online systems that allow users to
configure products online and compare prices across different catalogs and
marketplaces; includes shopping basket functions

E-Selling -- Provides solution for selling products and services via the Internet;
covers all phases of sales cycle, including one-to-one marketing, catalog browsing,
search, order placement, payment, contract completion, and customer support

Telesales -- Manages inbound and outbound calls; handles high call volumes;
provides efficient user interface; integrates sales information from back-office
systems and product information from online catalogs

Field Sales -- Delivers key customer and prospect information to sales personnel at
any place, at any time; facilitates planning and maintenance of sales activities, such as
appointments, visits, and calls, and provides activity reports; creates quotations and
takes orders; includes support for mobile and wireless devices

Order Fulfillment

In the order fulfillment phase of the relationship life cycle Customer Relationship

Management supports the following key functional areas:

Complete Order Life Cycle Process -- Provides the ability to track and trace orders
at all points along order management, manufacturing, distribution, and service
processes; proactively notifies customers of changes that affect delivery
16


Real-time Availability Checks -- Enables allocation of resources in real-time at the
front-end; includes real-time access to inventory levels, production capacity, and lead-
time requirements across the entire supply chain; enables visibility into product and
service delivery dates

Contract, Billing, and Financials Management -- Provides information about
customer contracts, billing status, and accounts; integrates back-office functions

Fulfillment Visibility and Order Tracking -- Enables real-time tracking of order
fulfillment; provides unique, customized and "guided" content for customers; allows
sharing of information with customers via the Internet

Customer Service

In the customer service phase of the relationship life cycle Customer Relationship

Management supports the following key functional areas:

Interaction Center -- Provides inbound and outbound call processing, e-mail
management, and activity management to track, monitor, and enhance all customer
contact; supports multiple channels for customer communication, including telephony
and Web; integrates industry-leading eFrontOffice call center applications from
Nortel Networks Clarify; provides certified interfaces to leading computer telephony
integration (CTI) solutions

Internet Customer Self-Service -- Offers customers and prospects access to
information and customer service functions via Internet; supports effective

customer self service; includes case-logic system featuring advanced decision support
for problem determination and resolution

Service Management -- Meets varied demands of service management business;
handles customer installations; facilitates simple and complex services; supports
services carried out at customer site or in-house repair center (depot); supports
involvement of external service providers; integrates contract management; checks
customer warranties when services are performed; calculates services charges;
integrates information from materials management, cost accounting, billing, and
accounts receivable; monitors day-to-day operations; helps decision makers with
strategic management issues

Claims Management -- Facilitates handling of entire claims process
17


Field Service - (Mobile Service) -- Delivers and tracks customer and account
information for field service personnel; provides service planning and forecasting,
scheduling, and dispatching functionality through tight integration with fulfillment
systems; includes support for mobile and wireless devices

Field Service - (Dispatch) -- Enables rapid allocation of service engineers and
materials to meet incoming service requests

Integration of Marketplace Services -- Provides access to a broad range of
applications and services hosted on virtual marketplace



Figure 4 Customer Life Cycle Management


Business Transaction






Customer

and referrals

customers


Customer Order Fulfillment
Engagement










Customer Service
18





CRM Formation Process

In the formation process, three important decision areas relate to defining the purpose (or
objectives) of engaging in CRM, selecting parties (or customer partners) for appropriate
CRM programs and developing programs (or relational activity schemes) for relationship
engagement with the customer.











Purpose
Increase
Effectiveness

Planning Process







Programs
Account
Management










Partners
Criteria








Team Structure



Role




Planning Process

Process Alignment





Monitoring



Communication




Employee Motivation




Employee Training




Evolution

Enhancement















Relationship
Performance

Strategic
Financial
Marketing
19








INDUSTRY ANALYSIS

GLOBAL FOUR WHEELER INDUSTRY

Evolution

The automobile industry has undergone significant changes since Henry Ford first
introduced the assembly line technique for the mass production of cars. Production
concepts, processes and the associated technologies have changed dramatically since the
first cars were built. Some 70 years ago car assembly was primarily manual work. Today,
the process of car assembly is almost fully automated. In the old days, firms attached
importance to the production of virtually every part in a single plant, while today,
carmakers concentrate on only a few specific production stages. Parts and module
production, services and related activities have been shifted to other, specialised firms
(outsourcing of production steps).Since the 1980s, it has become clear that further
productivity gains to retain competitiveness can be possible only by outsourcing and
securing greater flexibility. For example, firms, especially small car producers whose
markets have been threatened by imports, have diversified their production programmes
(e.g. by building off-road cars or convertibles) thereby introducing greater flexibility in
the production process. Also, firms and their production have become more
internationalized in lieu of outsourcing.

Current Scenario

The global passenger car industry has been facing the problem of excess capacity for
quite some time now. For the year 2002, the global capacity in the automotive industry
was 75 million units a year, against production of only 56 million units (excess capacity
estimated at 25%). Efforts to shore up capacity utilization have prompted severe price
competition, thus affecting margins and forcing fundamental changes in the industry. The
pressure on sales and margins is driving players to emerging markets in pursuit of better
growth opportunities and/or access to low-cost manufacturing bases.
20


The concept of selling in the passenger car industry is changing from original sales
towards lifecycle value generation, encompassing financing, repairs & maintenance,
cleaning, provision of accessories, and so on.

Vehicle manufacturers are moving into completely new materials and technologies
partly guided by environmental legislationin striv ing to come up with radically
different products. Some of these new technologies involve parts that can be bolted on to
an existing vehicle with relatively few implications for the rest of the vehicle. Others are
much more fundamental, and are likely to have a profound impact throughout the supply
chain. The examples include battery, electric or hybrid power trains, and alternatives to
the all-steel body. Carmakers are increasingly outsourcing component production, and
focusing on product design, brand management and consumer care, in contrast to the
traditional emphasis on manufacturing and engineering.

The increasing need to attain global scales underscores the importance of platform
sharing among carmakers. All original equipment manufacturers (OEMs) are trying to
reduce the number of vehicle platforms, but raise the number of models produced from
each platform. This means producing a number of seemingly distinct models from a
common platform.

As in manufacturing, distribution in the automobile industry is undergoing
significant changes, involving Internet use, retailer consolidation, and unbundling of
services provided by retailers.
21


INDIAN FOUR WHEELER INDUSTRY

EVOLUTION

The Indian automobile industry developed within the broader context of import
substitution during the 1950s. The distinctive feature of the automobile industry in India
was that in line with the overall policy of State intervention in the economy, vehicle
production was closely regulated by an industrial licensing system till the early 1980s that
controlled output, models and prices. The cars were built mostly by two companies,
Premier Automobiles Limited and HM. However, the Indian market got transformed after
1983 following the relaxation of the licensing policy and the entry of MUL into the car
market. IN 1991 car imports ere insignificant, while component imports were equivalent
to 20% of the domestic production, largely because of the continuing import of parts by
MUL. The liberalization of the Indian automotive industry that began in the early 1990s
was directed at dismantling the system of controls over investment and production, rather
than at promoting foreign trade. Multinational companies were allowed to invest in the
assembly sector for the first time, and car production was no longer constrained by the
licensing system. However, QRs on built-up vehicles remained and foreign assemblers
were obliged to meet local content requirements even as export targets were agreed with
the Government to maintain foreign exchange neutrality. The new policy regime and
large potential demand led to inflows of foreign direct investment (FDI) by the mid-
1990s. By the end of 1997, Daewoo, Ford India, GM, DaimlerChrysler and Peugeot had
started assembly operations in India. They were followed by Honda, HMIL, and
Mitsubishi.

Current Scenario

Major Players

Bajaj Tempo Limited, DaimlerChrysler India Private Limited, Fiat India Automotive
Private Limited, Ford India Limited, General Motors India Limited, Hindustan
Motors Limited, Honda Siel Cars India Limited, Hyundai Motor India Limited,
Mahindra & Mahindra Limited, Maruti Udyog Limited, Skoda Auto India Limited,
Tata Motors Limited, Toyota Kirloskar Motors Limited.
22


HYUNDAIS PRICING STRATEGY

With the launch of Maruti Swift recently a price war was expected to kick in .
Immediately after maruti raised prices on its debutante Hyundai Motor India hit back with
a Rs 16,000-19,000 markdown on three new variants of Santro Xing.The company has
introduced the XK and XL variants at a lower tag of Rs 3,26,999 and Rs .3,45,999
respectively.The new price variants are likely to give Marutis existing B-segment
models, Zen and WagonR a run for their money. Hyundai has also launched a new non-
AC variant of the Santro at Rs 2.79 lakh, a tad higher than what the existing non-Ac
Santro costs. The next offensive is due from Maruti. With the Santros new price
positioning, Zen and particularly WagonR may be due for a correction, or at least a
limited-period subvention. If that happens the domino effect will kick in across the B-
segment.

Hyundai is positioning its new variants on the tech platform. Strapped with 1.1 litre
engine with eRLX Active Intelligence technology, the new variants also come with new
colour-coordinated interiors, a new front grill and a 4-speed AC blower that makes the air
conditioning more efficient

TATAS PRICING STRATEGY

After the price war being triggered off by Hyundai being the first company to
introduce what came to be known as, pricing based on customer's value perceptions , all
others followed suit.Telco's Indica came in the range of Rs 2.56 lakh to Rs 3.88 lakh with
4 models. The price-points in the car market were replaced by price-bands. The width of a
price-band was a function of the size of the segment being targeted besides the intensity
of competition. The thumb rule being 'the higher the intensity, the wider the price-band.'

PRICING STRATEGY OF MARUTI

Maruti caters to all segment and has a product offering at all price points. It has a
car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business
from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to
provide an option to every customer looking for up gradation in his car. Their sole
motive of having so many product offering is to be in the consideration set of every
passenger car customer in India. Here is how every price point is covered.

23


Sl.No. BRAND VARIANTS PRICE IN (Rs.)




1 GRAND VITARA XL7 16,97,000.00



2 MARUTI BALENO LXi 5,72,000.00



VXi 6,42,000.00



3 MARUTI ESTEEM LX 4,66,000.00



VX 5,39,000.00



4 MARUTI VERSA DX 4,19,000.00



DX2 4,58,000.00



5 MARUTI SWIFT LXi 3,95,000.00



VXi 4,05,000.00



ZXi 4,85,000.00



6 MARUTI WAGON-R LX 3,35,000.00



LXi 3,62,000.00



AX 4,63,000.00



VXi 3,87,000.00



VXi ABS 4,20,000.00



7 MARUTI GYPSY ST 5,06,000.00



HT 5,29,000.00



8 MARUTI ZEN D 3,58,000.00



24





CUSTOMER CENTRIC APPROACH

Marutis customer centricity is very much exemplified by the five times consecutive
wins at J D Power CSI Awards. Focus on customer satisfaction is what Maruti lives with.
Maruti has successfully shed off the public- sector laid back attitude image and has
inculcated the customer-friendly approach in its organization culture. The customer
centric attitude is imbibed in its employees. Maruti dealers and employees are
answerable to even a single customer complain. There are instances of cancellation of
dealerships based on customer feedback.

Maruti has taken a number of initiatives to serve customer well. They have even
changed their showroom layout so that customer has to walk minimum in the showroom
and there are norms for service times and delivery of vehicles. The Dealer Sales
Executive, who is the first interaction medium with the Maruti customer when the
customer walks in Maruti showroom, is trained on greeting etiquettes. Maruti has proper
customer complain handling cell under the CRM department. The Maruti call center is
another effort which brings Maruti closer to its customer. Their Market Research
department remains on its toes to study the changing consumer behaviour and market
needs.Maruti enjoys seventy percent repeat buyers which further bolsters their claim of
being customer friendly. Maruti is investing a lot of money and effort in building
customer loyalty programmes.
25


AUTOMOBILE DEALER IN INDIA

The automobile dealer 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 dealer 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 dealer 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 dealer to supply to the automobile dealer. However, the growth
was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which
hampered the Indian private sector. After 1970, the automotive dealer started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a
major luxury. Japanese manufacturers entered the Indian market ultimately leading to the
establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian
companies.




Notable Indian Automobile Manufacturers

Hyundai Motors: Santro. i10 , i20

Maruti Suzuki[: 800, Alto, WagonR, Zen Estilo, A-Star, Ritz, Swift, Omni, Versa, Gypsy

Tata Motors: Nano, Indica
26


List of Maruti Suzuki Car Dealers in Jalandhar

Lovely Autos Stan Autos Pvt Ltd
Dr. Ambedkar Chowk, Jullundur, G.T.Road,Opp.D.P.S,, Jullundur,
Jalandhar, Punjab Jalandhar, Punjab
Tel: 0181-2237001-5 2227611,2242555 Tel: 0181-3952521


Swani Motors Ltd


19, G.T. Road,Near Bmc Chowk, Jullundur,

Jalandhar, Punjab


Tel: 0181-2240001/02/03 2240006






List of Maruti Suzuki Car Dealers in Ludhiana



Libra Autocar

Company Limited
Gulzar Motors Limited


G T Road,Dholewal, Ludhiana,
Near Airport, Po

Ludhiana, Punjab
Pawa,G.T.


Road,Ludhiana,

Tel: 0161-2541777 2541965-66
Ludhiana,


Ludhiana, Punjab




Tel: 0161-2512701 -


04
27






Stan Autos Pvt Ltd





Sandhu Automobiles Pvt. Ltd.

Near Sherpur Chowk,G

Link Road, Dholewal Chowk,Ludhiana, Ludhiana, T Road, Ludhiana,

Ludhiana, Punjab Ludhiana, Punjab

Tel: 0161- 2545656 2534514 Tel: 0161-2542100

2542300,2542600









Swani Motors Pvt. Ltd


12, Feroze Gandhi Market,Ferozepur Road,Ludhiana, Ludhiana,

Ludhiana, Punjab


Tel: 0161-5012274,5012774 2770774, 2773774




The major Maruti Showroom at Nawanshahr in Punjab is as

follows:


LOVELY AUTOS

Address: VPO LANGROYA NAWANSHAHR -
CHANDIGARH ROAD DIST. NAWANSHAHR
Ph. No.: 1823-251500 251501

Email: lovelyautosnws@yahoo.co.in
28


Hyundai Car Dealers in Jallandhar-

NAME ADDRESS TELEPHONE NO FAX

Goyal G.T.Road , 0181- 5063662
Hyundai Paragpur. 5062222/5061111/5063672/75
Pin:144005,
Jalandhar.

Kosmo Opp Delhi 0181-5009501/10 5009513 /
Hyundai Public School , 5009504
G.T.Road
Pin:144001,
Jalandhar.



Hyundai Car Dealers in Ludhiana

NAME ADDRESS TELEPHONE FAX
NO

Godawri 5th Milestone, Ferozpur 0161 2808440-5 0161
Hyundai Road, 2808446
Pin:142021, Ludhiana

Pioneer B-XXIX-104/1, 0161- 5095803
Hyundai Sherpur, G.T.Road 5095800/802
Pin:141 003, Ludhiana


Tata Car Dealers in Jalandhar -

NAME ADDRESS TELEPHONE
NO

Cargo Motors BSF Chowk, G. T. Road, Jalandhar. 0181-2243004-8
9814328686


29


Tata Car Dealers in Ludhiana -



NAME ADDRESS TELEPHONE
NO

Garyson Sherpur Chowk, G T Road, 0161-5025655-
Motors Ludhiana. 56
5069948
9855121449
981462565

Dada Motors Savitri I, G. T. Road, Ludhiana. 0161-3295821
9876188000
9876903232
987691323




KOSMO HYUNDAI

Opp Dps Main Rd, Main G T Rd, Basti Jodhewal, Jalandhar, Punjab, India

0181-5009501, 5009502

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 34 variants of passenger cars across segments. The Santro in
the B segment, the Getz Prime and the i10 in the B+ segment, the Accent and the Verna in
the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger car
manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY) 2007, an
increase of 9.2 percent over CY 2006. In the domestic market it clocked a growth of 7.6
percent as compared to 2006 with 200,412 units, while overseas sales grew by 11.8 percent,
with exports of 126,748 units
30


STAN AUTOS

Opp Dps, G T Rd, Jalandhar, Punjab, India
0181-2660366


stanauto@sify.com\

Stan Autos is the leading car and bike magazine, Latest road test on cars and bikes, reviews,
first drives, news, features, helping you buy used cars, answering car and bike queries, best
places to travel, results of Formula 1 drivers standings, updates on A1gp, aprc, wrc, inrc,
prices for all cars and bikes.
31




THE COMMON CRM TOOLS USED BY ALL THE DEALERS
32


NEED OF THE STUDY

The need of this study is to find the impact made by the CRM activities by the different
automobile dealer on the customer satisfaction and sale. On this study will let us know about
the various aspects of the CRM activities and automobile dealer in India. What are the
various factors affecting it positively and negatively? This study will enhance our knowledge
and will help us in times to come. We all find this area of study very lucrative so we have
chosen it as our topic of project.

SCOPE OF THE STUDY

This research study throws light on the CRM activities of the automobile dealer in punjab and
it will let all those who are interested in Indian automobile dealer with CRM to know
impacts of CRM activities by automobile sector.

This research work and survey would help to future researchers and students to know the
impact of crm activities by automobile sector in the broader areas and field and over all
employability and economic growth of the country in this very aspect.

Region of study:

Jalandhar

Banga (nawasehear)

Ludhiana




OBJECTIVES OF STUDY

What are the different CRM techniques being adopted by various dealers in small car
segment in the region of Punjab.

How much the CRM initiative of the companies helps them to retain their existing
customer and acquiring new customers.

Does the CRM activities have any impact on customer locality

To critically analyze the CRM initiative taken by automobile dealers to enhance
customer satisfaction.

33





RESEARCH METHDOLOGY:

PERIOD OF STUDY:

The period of the study for this project cover near about three months. Further, this much
period is a reasonable period to study the performance of target person and to gain knowledge
with respect to the objective of study.

TYPES OF THE RESEARCH:

It is a Descriptive Research and the main objective of Descriptive Research is to learn about
who, what, when and how. It includes study and fact finding inquiries of different kinds.
Thus the major purpose of descriptive research is the description of the state of affairs, as it
exits at present. To understand the various CRM activities and the impact of those activities
on customer loyalty an on the sale of the company we will design a questionaries that in
clued all the above said objectives

It also include Exploratory Research as we are focusing on the what are the recent trends in
the CRM activities in the automobile dealers and what are their consequences.

Population: Population includes the people of Jalandhar, banga (nawasher), Ludhiana

Proposed Sample Size: 100 customers

Research Tool: Questionnaire




FRAMEWORK OF ANALYSIS:

The study has been undertaken to examine and understand the marketing aspect of customer
relationship management for a business playing a crucial role in the growth. The framework
of study is concern with the CRM activities by automobile dealer in the region defined above
34


LITERATURE REVIEW

CRM techniques are the most widely techniques that had been used by the companies
but as our study revolves around the small car dealers so we have collected some of the data
on the existing structure of the CRM in the automobile industry by taking into consideration
the main three companies that is Maruti Suzuki, Hyundai, Tata Motors. To respond to high
customer expectations companies are finding they have to use both traditional and emerging
channels to deliver more effective efficient and profitable marketing sales.

In an article that is free take back network for Tata Motorss ELV that they have
developed an programme of appreciation to the previous Tata customers who wished to
dispose off their car at end of life vehical in UK and give that certificate of destruction and
that is free of charge.

An article that is being posted by delearelite.ca that what actually is the crm in the
automobile industry in that they have explained about the diffrrence between the CRM and
DMS as a dealer management software should have

Also an CRM-DMS initiative that is taken by tata motors has connected company to
1200 dealers and to the end customers. Of course we should also know about the choosing of
CRM software and that can be well got from the article that is poste on CRM guru blog that
is CRM Software Selection Does Not Have to Be Daunting Task which explains that
Choosing CRM software can be a daunting task, it does not have to be an insurmountable
one.

Simply defining the right goals and how the CRM software enables the company to
meet those goals will go a long way in preparing the company to make the smart choice.
Another aricle that is being posted on emerland insight that explains about the digital
loyality networks being adopted by the automobile dealers to enhance their CRM
activities. digital loyalty network, including the implementation of an integrated network
connecting the company with suppliers, alliance partners, dealers and customers .

One of the greatest example of CRM being adopted by maruti Suzuki when it recalled
its A star car due to some of the discrepancies article by arnab RC Bhargava, who is the
chairman of the company said that Maruti Suzuki is committed to the safety of the customers.
Another article that explains about the common CRM requirement to run the small car
dealership effectively and also explain the most suitable CRM solution the article named as

35


Which vendor is the best automotive CRM solution for today's small dealerships?

Typically a smaller dealership will not have that many departments or unnecessary
complexity to worry about, hence a lot simpler CRM solution is required, but at the same time
the system should be powerful and proven solution to their unique marketing challenges.
Some of the challenges facing the smaller dealers are: one the price tag, the smaller dealers
wouldn't want to pay a setup fee from $2000 to $10000, and they certainly don't want to pay a
monthly cost of $1500 - $500. The second challenge is I.T support, because many of the
smaller dealers will not have the luxury of having constant I.T support, therefore their CRM
solution should require minimal user training, with intuitive user interfaces. It should be
easily understood and used by the management, instead of leaving all the CRM problems to
your I.T department. Another feature that is required by the smaller dealer is quick turn
around, when they receive a vehicle, or stocking in a vehicle into their inventory.

In one of the article being posted by sharla sikes she has explained about the
increasing level of customer satisfaction due to the changing CRM that is 360 degree CRM
which maintain from all aspects a complete record of that consumers information. Data and
processes factor large in traditional CRM setups. The article is named as more than just

CRM.

Another article that is being posted by articlebase.com has resulted the parameters
that can be used to measure the customer satisfaction and the maruti was one of the first to
rank highest in customer satisfaction and the parameters on which the customer satisfaction
level was measured were problems experienced, service quality, service advisor, service
initiation, user-friendly service, service delivery, and in-service experience.

on demand automotive crm software solution: (car dealer software This is an
article written by salesboom.com that has explained Automotive CRM software systems are
designed to meet the most demanding Automotive sales software, marketing, call center,
Automotive shop software and field service requirements for car companies, importers, used
car dealers, parts shops, auto repair shops, distributors, and retailers. Salesboom Automotive
CRM tools encompass very comprehensive Automotive Software Applications that facilitate
management, synchronization, and coordination of all customer touch points, including Web,
call center, field organization, Automotive shop, showroom and partner networks.
36


In one of the article that is posted on the blogspot.com the article named as six reason why
crm initiative fails .There can be many reasons why CRM initiatives fail but here its going
to focus specifically on six of them pertaining to small businesses and startups. These CRM
activities has some points to be discussed like Counting v. Creating Customers, Measuring
the Wrong Thing, Structured v. Unstructured Data, Ease-of-Use, "Feeding the Monster",
Transactional Systems v. Solution/Relationship Systems. CRM guru has one of the article
being posted on it that explained about the strategic framework of CRM in automobile
sector. The authors emphasize the need for a cross-functional, process-oriented approach that
positions CRM at a strategic level. They identify five key cross-functional CRM processes: a
strategy development process, a value creation process, a multichannel integration process,
an information management process, and a performance assessment process.

ARTICLE REFRENCES

http://www.articlesbase.com/automotive-articles/why-are-the-dealers-still-using-outdated-
software-as-their-crm-solution-1944208.html

http://gmj.gallup.com/content/28297/what-price-car-customer-loyalty.aspx

http://www.salesboom.com/products/web-based_automotive_crm_software_solution.html

http://www.atypon-link.com/AMA/doi/abs/10.1509/jmkg.2005.69.4.167


http://blog.hubspot.com/Default.aspx?TabId=6307&bid=52


http://www.acastle.com/?gclid=CKe9tMSOsKACFQoupAodDiAiTg

http://www.tmcnet.com/channels/crm-software/articles/5594-crm-software-selection-
does-not-have-be-daunting.htm

http://blog.taragana.com/index.php/archive/maruti-a-star-recalled/

http://www.emeraldinsight.com/10.1108/10878570310505541

http://www.business-standard.com/india/news/auto-companies-need-to-deliver-atdealer\s-
level/367948/

http://www.articlesbase.com/advertising-articles/maruti-suzuki-rolls-high-on-
customer-satisfaction-627273.html
37


Questionnaire


Q:1 What is your family income p.a ?

2-3 lakh 3-4 lakh 4-5 lakh More than 5 lakh




Q: 2 Do you own any car ?

Yes_________ No__________



Q: 3 Please specify the number of cars?

1 2 More than 2




Q: 4 Which company car do you have?

Hyundai Maruti Suzuki Tata motors Any other




Q: 5 How long had you been using their services?

Less than six months More than six months but less than one year

1-3 years More than 3 years




Q: 6 On the scale of 1-5 where 1 represent extremely satisfied and 5 represent extremely
dissatisfied how would you rate your level of overall satisfaction with company?

Extremely Satisfied Neutral Dissatisfied Extremely
satisfied dissatisfied





Why do you say that? What specifically are you satisfied or dissatisfied with company ? enter
response below:
38


Q: 7 Please rate your level of agreement with the following statements (1-5 scale with 1 being
strongly agree,2 being agree,3 being neutral,2 disagree and 1 being completely disagree):

1 2 3 4 5

I believe Company deserves my loyalty

Over the past year, my loyalty to Company has grown
stronger

Company values people and relationships ahead of short-
term goals



Q: 8 Please rate your level of satisfaction with sale representative in the following areas

5- Strongly 4- satisfied 3- Neutral 2 2-Strongly
satisfied dissatisfied dissatisfied

responsiveness

professionalism

Understanding
of my needs

Q: 9 Thinking of your most recent experience with the product/service, how much do you
agree with the following statements?

5- strongly 2- somewhat 3- neutral 4- somewhat 5- strongly
agree agree disagree disagree

It was worth to
purchase

Relationship
maintainers
was good

It is easy to use

You were ask
for feedback


39


You will
repurchase it



Q:10. Thinking of similar products/services offered by other companies, how would you
compare our product/service offered to them?

Much better Somewhat About the Somewhat Much worse Dont know
better same worse




Q:11 Based upon your overall experience, please rate your satisfaction with Customer

Service in the following areas:

5 - Very 4 - Somewhat 3 - Neither 2 - Somewhat 1 - Very
satisfied satisfied satisfied nor dissatisfied dissatisfied
dissatisfied

Issue resolution

Quality of advice

Promptness of
answering phone

Overall quality of
issue handling

Professionalism of
Representative

Helpfulness of
Representative

Ease of contacting
Customer Service

Promptness of email
response

40





Q: 12 I trust the brand image of the company?

Strongly agree Agree Neutral Disagree Strongly
disagree




Q:13 Would you use our service in the future, if you have had a need for it?

Definitely Probably Not sure Probably not Definitely not




Q: 14 how likely are you to recommend company product to a friend a relative? Would you
say the chances are :

Excellent Very good Good

Fair Poor N.A




Q: 15 Amongst all the touch point being used by the company please mention the most of the
effective tools in the following table:

Front desk

Sales representative

Email

Sms

Website

Feedback

Calling



Thank you for your time and valuable input

NAME : AGE:

SEX: OCCUPATON

ADRESS:

41


ANALYSI S AND DATA-INTERPRETATION




What is your family income ?



























Which company car do you h ave?
42


Do you own any car ?
















Specify the number of car?

























How long had you been using their service ?
43


Overall satisfaction with com pany = satisfied
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87































ANOVA

Sum of Squares df Mean Square F Sig.

representative Between Groups 3.420 5 .684 .572 .721

Within Groups 112.420 94 1.196


Total 115.840 99


isuueresolution Between Groups 143.649 5 28.730 1.017 .412

Within Groups 2656.061 94 28.256


Total 2799.710 99


customerservice Between Groups 2.609 5 .522 .763 .579

Within Groups 64.262 94 .684


Total 66.871 99


88
89


ANALYSIS OF THE DATA


From the research study it is being found that most of the customers of small car
segment lies in the income level of 2-3 and 3-4 lakh and then after some of the
respondent were also lying in the 4-5 lakh but small in number where as more than 5
lakh is an rare chance.

The number of customer studied who have maruti Suzuki were 42 and Hyundai (28)
whereas tata motors (25) where as 5 were using other cars.

All of the 100 customers own the car.

60 of them were having one car, 35 have 2 cars and 5 have more than 2 cars.

Most of the old customers were attached to maruti as they were using mostly the
service more than 2 years.

The over all satisfaction average of maruti Suzuki customers are more than other
company customers.

Most of the Hyundai customer were responding to their recent experience with the
product that they strongly agree that it was worth to purchase but on an average the
worthiness of tata motors and maruti Suzuki was more in the analysis.

The user friendly award is being given to maruti Suzuki by the customer it is may be
due to the comfort and economical nature of their product and it could be analyse that
they are even using their brand image as a crm tool.\

The repurchase behaviour of all the customers of different companies are matching
but somewhat comparatively the repurchase pattern of tata motors is better resulted.

The study reveale that the feedback pattern used by maruti Suzuki and Hyundai
motors is comparatively good than that of the tata motors as according to the resposes
of 100 people so the result may be somewhat baised.

The loyality of the maruti Suzuki customer can been seen from their rating by
comparing the existing product with other companies they have rated their company
product much better in more frequencies than other customers.

As according to the customers response the brand image of the maruti Suzuki and
tata motors is much more than that of Hyundai and comparatively the brand image of
the maruti Suzuki is much rated by the customer it may be due to their customer
loyality programme and the number of service station available.
90



Most of the maruti Suzuki and tata motors customers are willing to recommend their
product to others but in this parameter Hyundai is also contributing some of the
efforts.

The touch point that have been asked from the customers and on an average the touch
point of the maruti Suzuki and the tatamotors are more effective which shows their
senstiveness towards crm activities but most of the effective tool for maruti is their
sales representative and their front desk where as tata motor is best at their email and
sms response. The effective tool of Hyundai is their email response.
91


FINDINGS


Crm that is customer relationship management is an very emerging activity in the
automobile sector as many of the firms are competing on the basis of this as their
competitive edge.

Punjab has an great hub for small car segment customer as according to the income
level.

As according to the income level people are interested to buy a small car inspite of
their more income.

Some of the software implication are also there in crm for companies.

Customer satisfaction lies in the services and the brand image of the company that is
positioning of the company

Sales representative plays an important role in the customer satisfaction and customer
retention of the given company

As according to the customer response more the company does to maintain the good
relationship with customer the more customer is willing to spread word of mouth as it
is maximum in case of maruti Suzuki.

The hypothesis we have selected that is null hypothesis that is crm has no impact on
the customers is being rejected by one way anova test and the alternative hypothesis is
selected as it is being proved that it has impact on the customer satisfaction.

Hyundai motors are not concentrating much on the crm activities as much as the tata
and the maruti Suzuki are doing.

The number of dealers of tata and Hyundai in the jalandhar and Ludhiana are some
what less than that of maruti.
92


LIMITATIONS


The period of study we were having with was not appropriate with the region defined
in the study as it require more time.

The response that is given by some of the customers about the company whos car
they own may contain some biasness.

It was very difficult to get the data from the dealers in the region because they are not
willing to disclose the data and hence the analysis that has been done on the basis of
available data may contain some biased results.

As we have taken the sample size of 100 people so it is confined to only 100 people
and hence we have taken the whole population as 100 so the result could vary if the
sample size has been changed or the people were changed.

The result of the study is applicable to the survey area alone.

Unwilling respondents also affect the result of the research.
93


RECOMMENDATIONS

In CRM the automobile dealers have to learn from other service industry such as
airline service industry. Each time a customer approaches the service agent his entire
history was flashed on the screen.

Customer knowledge can be used to offer customer specific offer on purchase of
second vehicle in family.

Many organizations operating in automobile market still do not differentiate their
CRM activities at the segment level. They contact each prospect with the same
frequency instead of applying a level effort consistent with the cost of acquisition and
profit potential. Their unrefined use of resources not only leads to wasted investment
but also can cause annoyance among customers who are either being oversupplied or
undersupplied with attention.

Proper training should be given to the employees on the new crm technology that is
being adopted by the organization.

There should be implementation of Microsoft dynamic CRM which is specially
designer for multitasking for businesses to maximize their investment and enhance
productivity.

Our research has analyzed that the most of the customer are diverting their loyalty
from the one dealer due to the reason of some kind of discrepancies in issue resolution
so each dealer should have an independent issue resolution department under their
CRM to better understand their need.
94





CONCLUSION

As our study is being confined to the study of crm by automobile dealers in the region of
Punjab ( jalandhar, ludhiana,nawasher) from the study we have reveal that some of the
customers have no knowledge about the CRM of the company after the purchase of the
car it may be due to the lack of awareness in that area but they could understand when
we explained to them. Now coming to the three companies under study the conclusion
can be stated in one line only that all the CRM initiative taken by the dealers of these
companies have impacted the customer loyalty and customer satisfaction ofcouse some
of the points are there where the dealers have to work on which we have explained in
the recommendation. So by working more on crm they can achive the heights of
customer satisfaction.
95


REFERENCES



www.lovelyautos.net/la_contact.htm

http://www.cardekho.com/Tata/Jalandhar/cardealers

http://www.automobileindia.com/cars/dealers/punjab/tata.html

http://www.deskera.com/crm?googcrm&gclid=CKCS58DQpqECFcVR6wodoiC9EA

www.mouthshut.com/.../Stan_Motors_-_Jalandhar-925104545.html

www.consumercomplaints.in/?search=maruti%20ritz

jalandhar.justdial.com/stan-auto_Jalandhar_qyowveujwfq.htm

www.indiaautomall.com/used_cars.../Punjab.html

iplextra.indiatimes.com/article/05wkedCf8v4JD?q=Missouri

www.capterra.com/auto-dealer-software
www.autobase.net/
www.marutisuzuki.com/
www.hyundai.com/in/en/mai

mydma09.bdmetrics.com/...CRM-Hyundai...CRM/Overview.aspx
www.tatamotors.com


Journals: Auto week

Text book : Kumar, Sinha and Sharma CRM Biztantra Publication