ACKNOWLEDGEMENT Words are only vehicles, which would carry my emotions and thoughts, when I step in the door of completion of my project work for summer training of two months. It gives me great pleasure and privilege to express my heartily thanks and deep sense of grati gratitu tude de towa towards rds my guide, guide, Prof. sterlin ing g effor efforts, ts, amic amicabl ablee Prof. R. Pahurk Pahurkar ar, for his sterl assistance, and inspiration in all phases of the project work toward the path of completion. I am grateful to Piaggio Vehicles Pvt. Ltd., Baramati for giving me the permission for the project work, and availing me their facilities. I am indebted to Mr. S. S. Sawant (Service Manager) and Mr. K. Kenche (HR Manager) for their prompt assistance and guidance during the course of my project work. I am grateful to S. P. Enterprises, Baramati for giving me the permission for the project project work, and availin availing g me their faciliti facilities. es. I am indebted indebted to Mr. Mr. P. Wabal Wabalee (Chief Manager) Manager) and Mr. (Head Sales Sales Executi Executive) ve) for their their prompt prompt assistan assistance ce and Mr. N. Bankar Bankar (Head guidance during the course of my project work. I also take this opportunity to express my sincere thanks toward all the members from Piaggio Vehicles Pvt. Ltd., Baramati for sparing their valuable time especially while clearing my vague concepts in fields of their expertise. I am thankful to Dr. B. V. Sangvikar, HOD, Department of Management Sciences, for his encouragement. I am extending my thanks to all those persons who have helped me, directly or indirectly, in completing the project work. I hope that I have been successful in my endeavor. Discrepancies, mistakes, if any, are solely mine.
Sameer V Mahajan MBA++ Marketing PUMBA
Department of Management Sciences (PUMBA)
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EXECUTIVE SUMMARY The automotive industry is at the centre of India’s new global dynamics. PIAGGIO VEHICLES PRIVATE LIMITED (PVPL) is a division of PIAGGIO GROUP, having a Piag Piaggio gio’s ’s produ product ct range range cover coverss three three wheel wheeler erss and light light comme commerci rcial al vehic vehicle les. s. Piagg Piaggio io Vehicles Pvt. Ltd. Baramati wants to shift from being process centered to more customer centered. The unit has good track record with excellent customer retention and customer satisfaction. The management felt the need to find out real picture.
The
proje oject
was
reall ally
chal hallengin ging.
As
t he
proje oject
title
“CUSTOMER
SATISFACTION SURVEY” suggests that it is all about the marketing and the commercial aspect of the company. It involved meeting 100 existing customers, taking their interview and finding out what they really perceive about the product performance. The domain of project was Baramati city of Pune district and the respondents were existing customers of S. P. Enterprises, Baramati (dealer). While doing survey I realize that the things learnt from the books are quite different from the actual practice in field.
The body of the project report takes a micro level approach, using each step of the marketing marketing research process. The main source of analyzing analyzing the data is through questionnaires. questionnaires. A thorough analysis has been done in research methodology part to find the advantages and disadvantages of the company. A complete analysis of variance has been done to find the kind of satisfaction PVPL’s Service Stations provides to their customers. The best part of this project report is the analysis and interpretation of the various services provided by Service Station. This part directly shows whether the customers are satisfied with the products and services of PVPL and criticizes the ill part of the company.
The major objectives of project were as follows….. •
To ascer ascertai tain n the level level of satisf satisfact actio ion n among among the Piagg Piaggio io vehic vehicle le owners owners (thre (threee wheelers) with respect to services provided by authorized service stations.
•
To evaluate critically market acceptance of Piaggio Group (PVPL) products.
•
Customer perception towards the products of PVPL.
•
The ways to retain the existing customers and improving customer base of three wheelers to service station.
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After gathering of data and doing analysis it was felt that the dealer’s people should visit the customers and the villages regularly which was not possible because of limited number numbers. s. Th Thus us after after consid consideri ering ng the limi limitat tation ionss the recom recomme menda ndati tions ons given given were were as follows…. •
Forming Customers Friend Cell (CFC) in each village which would comprise of the existing customers itself and providing them necessary training to check the maintenance maintenance aspects of the vehicle, informing them about the servicing servicing schedules etc. This cell would be the representative of the dealer in the village.
•
Conducti Conducting ng Seminar Seminarss and social social events events yearly yearly.. This This will will improve improve custome customer r involvement.
Many more suggestions were given to the management. management. These few recommendations recommendations will be implemented implemented from this year. At the last part I wrap up the project with suggestion suggestion and recommendations to enhance the future growth and prospects of the company.
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INDEX
•
Acknowledgement
•
Executive summary
1. Intr ntroduc duction 2. Indu Indust stry ry pro profi file le a. Th Thre reee whee wheele lerr indu indust stry ry b. Anal Analys ysis is of compet competito itors rs c. Growth prospect and key drivers d. Environmental and safety concern
3. Compa ompany ny pro profi file le a. Mission b. Vision c. Piaggio Vehicles Pvt. Ltd. Baramati d. S. P. Enterprises Baramati
e. Futu uture pla plans f. Produ roducct pro proffile 4. Rese Resear arch ch meth method odol olog ogy y a. Prob Proble lem m defi defini niti tion on b. Objectives ves c. Scope cope of study udy d. Resea esearc rch h des desig ign n e. Sampling f. Data co collecti ction g. Limi Limita tati tion onss of stu study dy 5. Data Data anal analys ysis is 6. Findings 7. Reco Recomm mmen enda dati tion onss 8. Concl onclu usio sion •
Questionnaire
•
Biblography
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LIST OF TABLES
Table No.
Table
01
Category wise Production percentage
02
Service frequency of vehicles
03
Service frequency at service station
04
Overall experience
05
Past experience with Piaggio vehicles
06
Types of work at workshop
07
Advance booking
08
Warranty cases handling
09
Frequency of ma maintenance
10
Interaction with service advisor
11
Understanding of problem stated
12
Road test
13
Delivery of vehicles
14
Estimates of cost and time
15
Competence of mechanics
16
Service recommendation
17
Infr nfrast astruct ucture ure and clean eanliness ness at work place
18
Spare parts experience
19
Repetition of work
Page No.
LIST OF FIGURES Department of Management Sciences (PUMBA)
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Figure No.
Figure
1
Category wise Production percentage
2
Category wise annual sales volume
3
Category wise pr production trend
4
Three wheelers sales data
5
Usage wi wise ma market of of three wh wheelers
6
Market share of three wheelers
7
Region wise sales of Piaggio group
8
Category wise sales of Piaggio
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INTRODUCTION
CUSTOMER SATISFACTION Department of Management Sciences (PUMBA)
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Today the companies are facing their toughest competition ever, due to numerous factors. And the entire success success of the company lies lies in the amount of belief and loyalty; loyalty; its customers are having in it. The amount of faith that is vested in the company by its customers determines the way the company’s preceding. In this digitally enhanced world, marketing has lost its prime scope and new terms have started creeping in its contents and one can see clearly clearly that that a vast
majorit majority y of these are ‘custo ‘customer mer focused focused’. ’. And the rest rest they are are from
‘Information Technology’. So customer plays the important role behind the success of a company, no matter what levels of technology it has and what levels of turnover they make. Now with with the technologi technological cal
interference, interference, the war between between the companies companies has has shifted shifted from
the grounds of Product, Price, Place and Promotion to single ‘P’ Pleasure of Person. And that person is the the ‘Customer’. ‘Customer’. Also gone are the days days of creating creating customers. customers. It is now acquiring acquiring and ‘sustaining’ the customer that plays a major role in deciding the victor in such wars.
The customer satisfaction satisfaction is thus vital element in success of company. company. Satisfaction Satisfaction is an individual’s feelings of pleasure or disappointment resulting from comparing a product’s perceived perceived performance (or outcome) in relation relation to his or her expectations. expectations. Whether the buyer is satisfied after purchase depends on the offer’s performance in relation to the buyer’s expectations. If the performance falls short of the expectations, the customer is dissatisfied. If the perform performance ance matches matches the expectat expectations ions,, the custome customerr is satisfi satisfied. ed. If the perform performance ance exceeds expectations the customer is highly satisfied or delighted. A company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfac satisfaction tion.. A highly highly satisfie satisfied d custome customerr general generally ly stays stays loyal loyal longer, longer, buy buyss more more as the company introduces new products and upgrades existing products, talks favorably about the company and its products, pays less attention to competing brands and is less sensitive to price, offers product or service ideas to the company, and costs less to serve than new customers because transactions are routine. When customers rate their satisfaction with an element of the company’s performance say delivery. It could mean early delivery, on-time delivery, order completeness, and so on. The company must also realize that two customers can report being “highly satisfied” for different reasons. One may be easily satisfied satisfied most of the time and the other might be hard to please but was pleased on this occasion. occasion. A number of meth methods ods exist exist to measu measure re custo custome merr satis satisfac facti tion. on. Peri Periodi odicc surve surveys ys can track track custo custome mer r satis satisfac facti tion on direc directl tly. y. Respo Respond ndent entss can can also also be asked asked addit addition ional al questi questions ons to measu measure re repurchase repurchase intention and the likelihood or willingness to recommend the company and brand to others. Companies that do achieve high customer satisfaction ratings make sure their target market knows it. For customer centered companies, customer satisfaction is both a goal and a Department of Management Sciences (PUMBA)
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mark marketi eting ng tool. tool. Altho Although ugh the custo custome mer-c r-cent entere ered d firm firm seeks seeks to creat createe high high custo custome mer r satisfaction, that is not its ultimate goal. If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing processes or investing more on R&D). Also, the company has many stakeholders, including employees, dealers, suppliers and stock holders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other “partners”. Ultimately, the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of satisfaction to the other stakeholders, given its total resources.
AUTOMOBILE INDUSTRY Department of Management Sciences (PUMBA)
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The automobile industry is one of the biggest industries in the world. Being a major revenue and job generating sector it drives the economies of some of the superpowers of the world. In India the automobile industry has grown by leaps and bounds since the advent of the liberalization era the automobile industry and especially the three wheeler segment has grown by leaps and bounds. The liberalization liberalization has done away with primitive and prohibitive practices of licensing and restricted foreign investment have been done away with. The result of which was the entry of foreign players into the Indian market.
India is emerging as a source of high value and advanced quality engineering products and services for multinational multinational companies. India is set to emerge not only as a large domestic market for automotive manufacturers, but also as a crucial link in the global automotive chain. Among other industries, industries, the automotive industry in India is understood to be the most dynamic. It has been experiencing strong growth rates after de-licensing of the industry in 1991, when major economic reforms took place in India.
The Indian auto industry has the potential to emerge as one of the largest in the world. Some remarkable milestones of the Indian automobile industry….. • The largest manufacturer and second largest market of two-wheeler in the world • The largest three-wheeler market in the world. • The fourth-largest commercial vehicle market in the world.
The post 90s era was the era of liberalization and weakening of restrictive measures. The government went on an overdrive to support the industry and all FDI regulations and licensing was abolished. 100% FDI was allowed in the automobile industry and the excise duty was also considerably reduced to its current level of 10% on three wheelers. These facto factors rs comb combine ined d with with the the risin rising g fuel fuel price prices, s, the incre increasi asing ng dispen dispensa sable ble incom incomes es of households, easy access to finance, etc. have led to three wheeler industry becoming the backbone of the automobile industry in India.
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Figure 1: Overview of industry
THREE WHEELERS INDUSTRY The three wheelers have successfully helped to overcome the dearth of jobs in the country. Numerous people could be seen driving auto-rickshaws on the roads of cities like Delhi Delhi,, Mumbai Mumbai,, Kolka Kolkata ta,, Hyder Hyderaba abad, d, Banga Bangalor loree and many many more more.. Due Due to their their simple simple construction and limited amount of investment the three wheelers as a mode of conveyance and commercial commercial
mechanism mechanism has gained gained popularity. popularity. What's What's more, more, their their maintenance maintenance is also also
quite simple. Bajaj Auto has dominated the three wheeler market in the country for years. Several other companies like Piaggio Vehicles and Mahindra & Mahindra have made a late foray foray into into this this fiel field. d. An overv overview iew of the curren currentt autom automobi obile le mark market et indic indicat ates es that that the tremendous demand of three wheelers in India and abroad has also allured several other automobile manufacturers like Honda India and TVS Motor to start producing the three wheelers.
India is the largest three wheelers market in the world. Three-wheelers are light vehicles also known as auto-rickshaws that are mostly used as small taxis, pick-up vans and delivery vans for short distances in India. They are driven by two stroke or four stroke engines on petrol, CNG or Liquefied Petroleum Gas (LPG). There are few manufacturers of this type of vehicle, but the three-wheeler segment has witnessed strong growth rates of 9 per cent CAGR over the past decade. Department of Management Sciences (PUMBA)
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Thee three Th three whee wheele lerr indust industry ry in India India forms forms a smal smalle lerr chunk chunk of the the autom automobi obile less produce produced d in India. India. Accordi According ng to Society Society of Indian Indian Automo Automobile bile Manufac Manufacture turers rs (SIAM) (SIAM) statistics for the year 2008 – 2009, three wheelers comprise around 4% of market share among the vehicles produced in India.
Table 1: Category wise Production percentage The sales volume clearly highlights this market share….
Figure 2: Category wise annual sales volume Three-wheeler sales in India touched a new record of 0.4 million in 2006–07. The launch of four-wheel, sub-1-tonne vehicles has resulted in a segmental shift from threewheeler wheelers. s. The proporti proportion on of three-w three-wheel heeler er goods goods carriers carriers in overall overall sales sales has doubled, doubled, indicating the increased need for a low-cost, last mile transportation system. The less-than3.5 tonne segment in goods accounted for 82 per cent of sales and the less-than-four seater segment in passenger versions accounted for 97 per cent of sales.
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The production share of three wheelers is quite similar to the market share. The three wheeler industry comprises around 74% of the total automobiles produced in India. The SIAM data for the year 2008-09 states that 8,418,626 three wheelers were produced during the year against a total of 11,175,479vehicles produced during the year.
Figure 3: Category wise production trend
In the past year the sales of the automobile segment has taken a setback and the three wheeler segment has not proved to be any exception. The three wheeler segment has suffered a setback of over 5% during the past fiscal year but there have been signs of recovery in the current year.
Figure 4: Three wheelers sales data The three wheelers market is dominated by passenger carriers. The replacement of four wheelers in the 1.5 tone category, have made severe impact on goods carrier category. Department of Management Sciences (PUMBA)
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Figure 5: Usage wise market of three wheelers
The export of automobiles from India has been constantly growing and with the slowdown in the domestic market, the major companies are focusing on exporting much more to increase their profit margins.
COMPETITORS The three wheelers market is been dominated by Bajaj Auto and Piaggio Vehicles.
Figure 6: Market share of three wheelers
Bajaj Auto Ltd.
Baja Bajajj Auto Auto Ltd. Ltd. is one one amon among g Indi India' a'ss top top ten ten comp compan anie iess in term termss of mark market et capitalization and among the top five in terms of annual turnover. Established in 1945 Bajaj Department of Management Sciences (PUMBA)
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Auto Ltd was incorporated as a trading company. Till 1959, they imported scooters and threewheelers from Italy and sold them in India. The company got a production license in the year 1959 and fastened a technical collaboration with Italian PIAGGIO in 1960.
The company started producing scooters in the year 1961 and followed three-wheelers production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their scooters and three-wheelers are being sold with the brand name “BAJAJ”.
Today, the company company has become a market leader with annual production production in excess of 1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has started offering products in all segments (mopeds (mopeds,, scooters, motorcycles, three wheelers).
TVS Motor Ltd.
The company has been known for its ruggedness and reliability. TVS Motor is a leading and trusted two wheeler company. TVS Motor has continually continually worked on innovation innovation of the all segment along with three wheelers range. In all, team TVS has triumphed each and every race and rally in the country from the road to racetrack, with each of the TVS bikes being a winner. And each time the 'Team TVS' has won on the track or off it; our customers have secured a better product for their personal transportation.
GROWTH PROSPECTS AND KEY DRIVERS The growth witnessed by the Indian three wheelers industry indicates the growing demand for low cost personal transportation transportation solutions amongst the 300 million million Indian middle Department of Management Sciences (PUMBA)
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class consumers. Despite this spectacular growth rate, the three wheeler penetration (number of three wheelers per 1000 inhabitants) in India remains lower than other Asian countries. This fact provides an opportunity for continued growth in the market. India has the lowest penetration of three wheelers as compared to countries like Taiwan, Thailand, Malaysia, Vietnam, Vietnam, Indonesia and China. In the present scenario, growth in the three wheelers Industry will be driven by several factors like •
Rise in India’s Young Working Population
•
Rise of India’s Rural Economy and Growth in Middle Income Households
•
•
Greater Affordability of Vehicles
•
Rapid Product Introduction and Shorter Product Life Cycle
Inadequate Public Transport Systems in most Urban Areas
ENVIRONMENTAL AND SAFETY CONCERNS The increasing demand for three wheelers will need to be managed to address issues relating to overcrowding of roads. Another problem is the insufficient infrastructure for inspection to ensure adherence to emission norms. As the industry grows, it is important to regulate the sale of used two wheelers in a more organized manner for which a mechanism needs to be evolved. Unregulated Unregulated sale of three wheelers, especially especially the rural areas, are likely to create issues related to emissions and safety of vehicles.
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COMPANY PROFILE
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PIAGGIO GROUP Thee Piagg Th Piaggio io Group Group based based in Pontedera Pontedera,, Italy has been a world leader in the two wheeler and Commercial Commercial Vehicles Vehicles industries for over sixty years. years. The Group encompasses encompasses seven brands producing scooters and motorcycles. motorcycles. As the fourth largest producer of scooters and motorcycles motorcycles in the world, Piaggio produces more than 600,000 vehicles annually, with 5 Research and development centers, more than 6,700 employees and operations in over 50 countries. The group operates in the two-wheeler sector manufacturing products under the brands brands namely namely Piaggio Piaggio,, Vespa, Vespa, Giller Gillera, a, Derbi, Derbi, Aprilia Aprilia,, Scarabe Scarabeo o Moto guzzi. guzzi. Vehicle Vehicless manufactured are sold in over 50 countries. Two three and four wheelers are all distributed through their own sales networks, comprising over 11,000 independent operators in the European main and secondary networks, 250 exclusive dealers in India and 300 dealers in the USA, as well as the distribution network of Piaggio importers in other countries.
Figure 7: Region wise sales of Piaggio group
The Group operates in the three and four wheelers sector, manufacturing products under the Piaggio, Ape, Quargo and Porter brands. The Piaggio Group light commercial vehicles stand out for their compact dimensions, high load bearing capacity and superb handling. The Piaggio brand image is one of vehicles that are safe, stylish, robust and with cutting-edge technology, able to meet the most diverse urban mobility requirements.
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Figure 8: Category wise sales of Piaggio The Piaggio Group has always been committed to safety, quality, environmental issues and the well-being of its employees and partners. In other words, it is committed to being socially accountable for its operations.
Mission Piaggio is an Italian industrial group operating with a multinational strategy, whose activities are directed towards offering transport solutions at an affordable price and with low environmental impact to customers in more than fifty countries in Europe, India, Asia and America. Its objectives are to create value for all its shareholders, while complying with business ethics and recognizing the social role it has to play, contributing to the professional professional advancement of its employees and partners and to the economic and civil development of the communities in which it operates.
Vision To be the no. 1 and the most profitable global player with world class quality and technol technology ogy leadersh leadership ip in the light light commer commercial cial vehicle vehicle categor category y offerin offering g transpor transportat tation ion solutions for specific customer needs. To be perceived as a unique, high -impact, fastresponse, innovative and growth oriented company which is known around the world for its unmatched level of excellence.
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Piaggio Vehicles Private Limited (PVPL) Piaggio Vehicles Vehicles Private Limited (PVPL) in India is a 100% subsidiary of Piaggio & C. Spa Spa of Italy Italy,, a world world major major in two, two, three three and four four whee wheeled led motor motoriz ized ed vehic vehicles les.. It revolutionized the two and three wheeler business in India. Piaggio’s target in India of achieving a turnover of $ 1 billion by 2010 is well on the road to fulfillment. PVPL commenced its Indian operations in 1999 with introduction to “ape'” brand of diesel Light Transportation vehicles.
PVPL has pioneered the 3-wheeler goods transportation in India and has achieved and sustained a leadership status in the cargo segment. Piaggio India is now recognized not just as a leader in its class, but also as the gold standard in fuel efficiency, load carrying capacity and lowest operating costs.
Piaggio has invented 3-wheeler in year 1947 and ever since company has pioneered the technology all across the globe. The latest entrant in the product range is a sub one-ton four wheeler "ape truk", which has been successfully launched launched in various states across India. The access to Piaggio’s immaculate and rigorous R&D has played a role of a key driver to our success in India. The R&D backup in India has played a role of backbone in introducing introducing state-of-the-art state-of-the-art of product with latest technology. The company is headquartered headquartered at Pune and its state-of-the-art state-of-the-art manufacturing manufacturing facilities facilities at Baramati, Baramati, Maharashtra. PVPL employs employs around 1700 people, has a widespread network with 7 regional offices, 14 branch offices and more than 600 sales and service outlets across the country.
Piaggio's ape' already has more than 6,00,000 happy ape’ customers in India today. The company achieved sales of over 1,55,000 vehicles in the year 2007. PVPL is currently the market leader in the state-of-the-art state-of-the-art three-wheeler diesel category in India, with a market share of 55%.
Piag Piaggio gio India India’s ’s manuf manufact actur uring ing hub is a pictu picture re of cutti cutting ng edge edge manuf manufact actur uring ing technology and advanced facilities. Having started with just 40 vehicles a day, the Indian Plant today produces 500 vehicles per day and has a capacity of 2,00,000 vehicles per annum. Piaggio India truly represents a seamless integration of the best of skills, technology, design, research research and custome customerr care with with Indian Indian resource resources, s, infrastr infrastructu ucture, re, intellig intelligent ent manpowe manpower, r, Department of Management Sciences (PUMBA)
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marketing and financial skills, and most importantly, a deep understanding of the Indian market and customer needs. Piaggio’s concern for the environment is known across the globe. We have always shared a huge commitment commitment to develop products that are environment friendly.
S. P. Enterprise, Baramati It has persuaded hard to be one of the most valued organizations for retailing auto motive and allied products with professional approach and ethical business practices. It gives prio priori rity ty to attai attain n custo custome merr delig delight ht throu through gh effec effecti tive ve impl implem ement entati ation on of syste systems ms and procedures and development of infrastructure which will ensure quality. The core values are….. •
Concern for customers
•
Relationship with trade partners
•
Compliance of systems and procedures
•
Reverence for fellow employees
•
Commitment to our principles
•
Respect to wards work
The relationship with the company…. Produ Product ctss port portfol folio io
: Ape Ape 3whee 3wheele lers, rs, cargo cargo & Pas Passen senge gerr vari variant ants. s.
Territ Territorie oriess handle handled d
: Three Three Talukas Talukas namely namely Barama Baramati, ti, Daund Daund and and Indapu Indapur. r.
Vital Statistics Sales Service
: Over 1000 vehicles sold during F07-08. : Over 500 vehicles serviced per month.
Infrastructure Infrastructure : Own sales and and service service outlets outlets in 5 locations locations.. Perform Performance ance : Sales Sales growth growth of over over around around 25% 25% over over F07-08 F07-08..
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Future Plans Italian auto maker Piaggio is planning to manufacture two wheelers in India in the coming years, as part of the company's growth plans for Asia. The maker of the famed Vespa scooter would also be developing four wheelers product range and manufacture new diesel engines. Detailing Detailing the company's company's strategic plan for the 2009-12 period, Piaggio today said it aims to create the conditions for strong growth in Asia. As part of the plan, the firm would strengthen strengthen its direct industrial presence and also increase "the offering of two-wheel vehicles to be produced in India as well and commercial vehicles, backed by the development of distribution structures, organization, and human resources". Piaggio said it would start the production of new 1000 and 1200 cc diesel and turbo diesel engines. "These engines are to be the fundamental feature of the Group's expanded range of commercial vehicles, produced and marketed in both Europe and Asia, which will lead to growth and segmentation of the Ape, Quargo, and Porter lines," the statement noted. The company would develop "four-wheel product range, with new Ape Mini Truk, new Ape Truk Maxi Cargo...," in India. The company produces three and four wheelers at the Baramati plant in Maharastra.
Piaggio India truly represents a seamless integration of the best of skills, technology, design design rese researc arch h and custo custome merr care care with with India Indian n resou resourc rces, es, infra infrastr struct uctur ure, e, intell intellig igent ent manpower, manpower, marketing and financial financial skills, and most importantly, importantly, a deep understanding of the Indian market and customer needs. Piaggio’s concern for the environment is known across the globe.
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PRODUCT PROFILE The company’s company’s product range includes includes half tonner tonner cargo cargo vehicles vehicles (Pick Up and Delivery Delivery van), and 3 seater passenger vehicles in various fuel variants like Diesel, CNG, and LPG. The latest entrant in the product range is a sub one-ton four wheeler ape truk, which has been successfully launched in various states across India. All vehicles are engineered for higher fuel efficiency, rugged performance and outstanding load carrying capability; these vehicles are extremely environment friendly and conform to the most stringent emission norms. For the different types of transportation needs, answer is with us…. •
High body
•
Pick-up (Basic Model)
•
Delivery van
•
Bakery Shop
•
Cylinder Carrier
•
Hydraulic Hopper
•
Florist van
•
Ice Cream Parlour
•
Hydraulic Jetter
•
Water tanker
•
Dumper Placer
•
Soft Drink Carrier
•
Chicken Carrier
The particular superior features each product assures are…. •
High Economy
•
Low Operating Cost
•
Reliable & rugged
•
Total Care
•
Looks and Style
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PIAGGIO APE Piaggio ape three wheeler is the market leader in light commercial vehicles (LCV) segm segmen ent. t. Laun Launch ched ed 2 year yearss afte afterr the the Worl World d reno renown wned ed Piag Piaggi gio o Vesp Vespaa in 1948 1948,, the the introduction introduction of this new 3-wheeled vehicle helped commercial commercial activities pick up in-post war Italy. Unique and unrivalled, Ape has remained faithful to itself, even through so many models and never-ending changes. Today, its unique, quirky shape is built around a semimonocoque frame that uses a single load-bearing chassis in sheet-steel. The steel body houses either one or two seats. The body comes in number of styles including Van and Pick up and can be customized to meet a variety of commercial needs, from catering to urban refuse collection. The Ape is also a fantastic outdoor advertising media solution.
APE TRUK With its sleek Italian styling and contemporary ergonomically design, the Ape TRUK is yet another winner from the house of Piaggio – the force behind India’s largest selling diesel 3 wheeler: Ape. True to its international pedigree: the Ape TRUK is a state-of-the-art sub one-tonne 4-wheeler that combines a whole basket of outstanding features – excellent stability, the highest payload, the convenience of 3-side openable panels, higher ground clearance, clearance, all-terrain capability and outstanding fuel efficiency. Add to this its stylish Italian looks and the highly comfortable car-like interiors, and you get a clear picture of what the Ape TRUK has to offer.
Key Benefits •
Great Mileage & performance
•
More Load ability
•
State-of - the art technology
•
Lowest operating costs
•
Unbeatable service
•
Super safety
•
Great driving comfort
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RESEARCH METHODOLOGY
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PROBLEM DEFINITION:
Missi Mission on state stateme ment nt of Piagg Piaggio io Group Group gives gives prime prime impor importa tanc ncee to the the custo custome mer r satisfaction. The company is the leader in providing three wheelers to customers. PVPL wanted to measure the customer satisfaction for the after sales service provided by S. P. Enterprises in Baramati region. The period of project was the time when the new LPG model of Ape was introduced introduced in the market. The Sales Executives had to visit the villages under the service area of the dealership. The survey was thus conducted to find perception of the customers towards the company product and its performance.
PVPL and SP Enterprises also want to increase their customer base. And hence a survey of prospective customers customers was also done to find out the important aspects to attract the prospective customer. Also to find out the deficiencies in product because of which the customers are not preferring company’s product over rival’s products. So it was thought to interview the non customers also to find out the level of customer satisfaction.
OBJECTIVES:
Primary Objectives •
To ascer ascertai tain n the level level of satisf satisfact actio ion n among among the Piagg Piaggio io vehic vehicle le owners owners (thre (threee wheelers) with respect to services provided by authorized service stations.
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To find the loopholes in the after sales services to the customers.
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To evaluate critically market acceptance of Piaggio Group (PVPL) products.
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To analyze the price sensitivity in various spares.
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To find out the customer’s perception on different attributes through questionnaires.
Secondary Objectives •
Customer perception towards the products of PVPL.
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Advice to change some attributes of Service Station.
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To understand the potential market.
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The ways to retain the existing customers and improving customer base of three wheelers to service station.
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SCOPE OF THE STUDY:
As the title of the project “CUSTOMER SATISFACTION SURVEY ’’ suggests that the project is divided into two major parts: 1. Technical 2. Commerc ercial ial The scope of the technical technical part is limited limited to the company premises only. Various Various raw materials are imported from our own domestic and foreign markets also. The research and development department of Piaggio Vehicles Pvt. Ltd. is constantly attempting to lower the cost of some of the models.
The scope of the commercial part is very wide. The geographical area covered is Baramati. The time period assigned was complete two months. The authorized service station covered for the survey was S. P. Enterprise, Baramati. Basically there was a questionnaire to which the respondent has to respond.
RESEARCH DESIGN:
•
Targ Target et Popu Popula lati tion on
: Ex Exis isti ting ng custom customer erss of S. P. Ente Enterp rpri rise se,, Bara Barama mati ti of Piag Piaggi gio o
Ape (3 Wheeler). •
Time boundary
: Two months (1st June 2010 to 31st July 2010)
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Space bo bound undary ary
: Ba Baramati cit city of Pune distr strict.
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Survey methods:
•
o
Instrument used
: Questionnaire
o
Data co collection
: In Interview te technique wa was pe personal
o
Response me method
: Ve Verbal re response
Questionnaire design: o
Required information is unraveled by facts, opinions knowledge & behavior type questions.
o
•
Quest Questio ion n struct structuri uring ng : struc structur tured ed
Research environment
: natural
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All research approaches can be classified into three general categories: 1. Ex Expl plor orat ator ory y Resea Researc rch h 2. Desc Descri ript ptiv ivee Resea Researc rch h 3. Casua asuall Res Resea earc rch h
The data collection is done by use of surveys methods and hence descriptive type of research is used for analysis of the data. The study was descriptive in nature because it depicts characteristics or functions of the market. It describes the number, distribution and socio-economic characteristics of potential customers for the product.
SAMPLING:
A sample is a part of the population. The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired, the error and variance have to be controlled, measured and interpreted.
The type of population selected is the customers of service station of Piaggio Vehicles Pvt. Ltd. named S. P. Enterprise at Baramati. Baramati is a taluka of Pune district of Maharashtra state. Sample Size
: 100 Existing Customers.
Samplin Sampling g Technique Technique : Non probabil probability ity judgme judgment nt samplin sampling g
The statistical tools used while analyzing the data are as follows….. •
Tables
•
Bar charts
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figures
DATA COLLECTION: Department of Management Sciences (PUMBA)
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Primary Data The primary data was collected by asking the consumers who come to the authorized service stations for the servicing of their commercial vehicles and also the new customers customers of the commercial commercial vehicles to fill up the questionnaires questionnaires by me. It is a very important important part of the project as it is only through the properly filled up questionnaires that I can reach to any concl conclusi usion on from from the data data which which I got from from the questi questionn onnai aires res.. Th Thee metho methods ds used used for collecting primary data are as follows… a) Obser servat vation b) Inte ntervie view c) Tele Teleph phon onic ic Inter Intervi view ew d) Ques Questi tion onna nair ires es
Interview: Interview is one of the chief means of collecting data in research process. Interview may be defined as a systematic conversion initiated for a specific purpose and focus on certain planned content areas. It is not a simple two way conversion between an investigator and an informant.
Surveys: There are three main types of surveys, depending upon the method of data gathering used: personal interview surveys, telephone surveys and mail surveys. The main advantages of survey are wider distribution, lesser distribution bias and thoughtful responses.
Thee prim Th primar ary y data data unde underr proc proces essi sing ng is coll collec ecte ted d from from both both dire direct ct fill fillin ing g the the questionnaires and through telephone interviews also.
Secondary Data The data once collected by one person become the secondary data if used by another person. Secondary data are the information which is attained indirectly. They are the data collected by someone else and which has already passed through statistical process. The various sources of secondary data are as follows….. a) Bibli ibliog ogra raph phy y b) Directory ory c) Newspaper Department of Management Sciences (PUMBA)
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d) Journals e) Website f) Television
Thee secon Th seconda dary ry data data like like inform informat atio ion n of existi existing ng custo custome mers, rs, infor informa mati tion on about about company’s profile product line and sales figure has been taken from company’s website.
LIMITATIONS OF THE STUDY:
Every study conducted may have certain shortcomings and unfortunately this is also a similar case. A few errors have crept in despite best effort to avoid them but it is expected that still the study and findings are very much relevant. •
An error may have been due to the samples taken not conforming to the actual population. This is because the sample is a convenience sample.
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Personal bias or error of the interviewer might also have crept in the responses. It realized in some cases, while interpreting the respondents.
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Certain questions which are not properly responded by the responders.
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Some of the respondents have not responded totally.
DATA ANALYSIS
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The questions about customer’s satisfaction were asked to 100 customers who have purchased Piaggio Ape and Ape Truk form S. P. Enterprise, Baramati. The data was collected in the month of May and June 2010. A regional language (Marathi) was used while framing questions. Analysis of it was done on a MS-Excel sheet with the help of simple graphical method. Questionnaire includes both open ended question and close ended question.
For the convenience of the reader question are also given above the charts for better understanding. Many valuable inputs were received in the course of the project. They are presented as findings after relevant chart.
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When was the last time your Piaggio vehicle was serviced with a Piaggio dealer authorized service station?
Sr. No.
Period
Number of customers
1
March 09
25
2
April 09
32
3
Jan-Feb 09
25
4
Year 2008
18
Table 2: Service frequency of vehicles
Chart 1: Service frequency of vehicles
Most of the customers have come for service in PVPL dealer service station in the month of April i.e. 32% last time and the least the customers came for service is in the year 2008 i.e. only 18%. According to the customer survey many customers customers told that they have to Department of Management Sciences (PUMBA)
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come for service again and again because of some problem in the vehicle. Only 18% of the total customers said that they have come to a dealer service after a very long time. Those 18% customers are quite satisfied with the service.
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Where did you take it for service?
Sr. No.
Dealer
Number of customers
1
S. P. Enterprise Baramati
80
2
Other
20
Table 3: Service frequency at service station
Chart 2: Service frequency at service station
It clearl clearly y indica indicates tes that that custom customers ers regula regularly rly comes comes to dealer dealer and are satisf satisfied ied with with the performance of dealer.
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How was the overall experience?
Sr. No.
Experience overall
Number of customers
1
Satisfied
60
2
Dissatisfied
40
Table 4: Overall experience
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Most of the customers are dissatisfied with the unavailability of spare parts in the service station. Some are dissatisfied with the product quality. Some are unhappy with the mechanics mechanics working in S. P. Enterprise. Enterprise. Most of the customers are very much happy with the culture of dealership and also the way the staffs attend the customers. Some are unhappy with the space available for servicing at dealer point. Some are dissatisfied with the delay in service.
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Number of Piaggio vehicles used in past 5 years? Sr. No.
Number of vehicles
Number of customers
1
Less than five
43
2
Five
22
3
More than ten
35
Table 5: Past experience with Piaggio vehicles It shows that many customers are satisfied and happy with PVPL products and of their services.
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Type of work required in your vehicle? Sr. No.
Type of work
Number of customers
1
Paid service
30
2
Free service
36
3
Paid repair
14
4
Warranty
20
Table 6: Types of work at workshop
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Most of the customers come to S. P. Enterprise for free service and only 14 out of the 100 customers come for the paid repair. The reason behind this is that the spare parts available at any dealership are very costly. Therefore sometimes they buy par ts from local shops at lower cost.
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Did you have to make an advance booking? Sr. No.
Advance booking
Number of customers
1
Yes
70
2
No
30
Table 7: Advance booking Many customers have to make an advance booking for servicing because in service station because of the rush of customers time consumption is more. This results in a loss of the the custom customers ers.. Th Ther erefo efore re they they have have to do advan advance ce boo booki king. ng. Only Only 30% of the sampl samples es customers do not do advance booking. These customers mainly come for paid repairing of the vehicle and not for free servicing. Many customers have to wait in the queue because of the rush.
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If your vehicle was under warranty was it immediately accepted or it took time for a decision to be taken? Sr. No.
Warranty immediately accepted
Number of customers
1
Yes
40
2
No
60
Table 8: Warranty cases handling Some customers said that there was unavailability of spare parts in service station and therefore therefore it was not accepted. In some other dealer workshops they do not have the authority authority to accept warranty. Sometimes Sometimes parts are not available so the dealers have to bring those from outside. It is time consuming and also loss for the customer. But some parts of vehicle are not under warranty so it is not accepted. Also some customers do not bring their registration book so it is not possible for the dealer to repair the vehicle under warranty because for some vehicle warranty is accepted till one year from the purchase date.
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How frequently the maintenance costs occur? Sr. No. 1
Frequency monthly Never
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Number of customers 18
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2
Less than three
73
3
More than three
09
Table 9: Frequency of maintenance Very few customers have to incur heavy maintenance cost monthly. Otherwise Otherwise major chunk of customers need minute maintenances. Only 18% customers reported that they didn’t incur any expense on their vehicle since they purchased. These customers have recently bought their vehicle. Therefore it means the maintenance cost of Piaggio vehicles is very less.
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Did you interact with the service advisor? How was the understanding of the problem? Sr. No.
Interaction with service advisor
Number of customers
1
Yes
70
2
No
30
Table 10: Interaction with service advisor
Sr. No.
Understanding of the problem
Number of customers
1
Yes
40
2
Almost
25
3
No
5
Table 11: Understanding of problem stated
Sr. No.
Road test
Number of customers
1
Yes
78
2
No
22
Table 12: Road test
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Was vehicle delivered on time? Sr. No. 1
Timely delivery Yes
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Number of customers 71
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2
No
29
Table 13: Delivery of vehicles
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Did workshop give you proper estimate of cost and time on time? Sr. No.
Estimation of cost and time
Number of customers
1
Yes
65
2
No
35
Table 14: Estimates of cost and time It gives idea to the customer about expense of time and money he has to incur. The proper estimates given if mate adequately then it will build good customer relation.
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How do you find the competence of mechanic in the workshop? Do they know their job well? Sr. No.
Competence of mechanic
Number of customers
1
Satisfied
82
2
Dissatisfied
18
Table 15: Competence of mechanics
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Will you recommend others for service in this workshop? Sr. No.
Recommendation
Number of customers
1
Yes
75
2
No
25
Table 16: Service recommendation It shows that major chunk of customers are happy with the staff present in S. P. Enterprise Baramati. They are satisfied with prompt, better and quick service at service station. Some customers recommended that the mechanic should be increased as there is always a rush in the workshop. The manager should guide the mechanic to do proper work and recheck the vehicle after the servicing is done. One supervisor should also be kept to guide the mechanic.
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Are you happy with the infrastructure and cleanliness at the service station? Sr. No.
Cleanliness
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Number of customers
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1
Yes
34
2
No
66
Table 17: Infrastructure and cleanliness at work place Major focus has to be given on these parameters parameters so as to increase level of satisfaction satisfaction and customer base.
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Are Are you you sati satisf sfie ied d with with the the avai availa labi bili lity ty and and cost cost of spar sparee part partss at S. P. Enterprises? Sr. No.
Spare parts
Number of customers
1
Satisfied
73
2
Dissatisfied
37
Table 18: Spare parts experience Some customers customers said even the common and frequent parts are not available available at service station. Therefore Therefore many times customers have to purchase parts from outside form their own pocket.
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Did you go back to the workshop for the same problem shortly afterwards? Sr. No.
Spare parts
Number of customers
1
Yes
42
2
No
58
Table 19: Repetition of work
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FINDINGS & RECOMMENDATIONS
FINDINGS The overall customer satisfaction of service station namely S. P. Enterprises, Baramati of Piaggio Vehicles Pvt. Ltd. is very good. Customers are happy with the dealership working Department of Management Sciences (PUMBA)
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if we look at the overall picture. The after sales services are prompt and satisfactory. Customers get the services fairly and easily. Customer retention of S. P. Enterprises is very good.
But But S. P. En Enter terpri prises ses does does not give give empha emphasi siss on the the promo promoti tiona onall aspect aspect.. Th Thee proximity is the factor which is creating problem for PVPL to increase customer base through this dealership. Many times the information about various types and aspects of after sale services are not provided to the customers timely and in proper manner. The registration registration and documentation of a new vehicle is bit complicated and time consuming process.
Over Overal alll perf perfor orma manc ncee of the the deal dealer ersh ship ip is very very good good.. It is way way ahea ahead d than than its its competitors. But still the professional aspect is missing. And hence the PVPL is not able to increase the customer base as it should, even if the performance performance of product line is great. The sales executives rarely visit the villages under the service area of the dealership. There is room for improvements. The dealership is not performing performing like the brand name ‘Piaggio ‘Piaggio Ape’ suggests. If the suggestions given will be implemented then it would really be an customer oriented approach.
RECOMMENDATIONS
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Set Set up Cust Custom omers ers Frien Friends ds Cell Cell (CFC (CFC)) in each each vill village age comp compris rising ing of two two senio senior r customers who are the users of product for more than 5 years and two young customers who can devote their time to help other customers.
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•
Conduct seminars and social events yearly. This will improve customer involvement.
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Proper estimate of the cost and the time taken to repair should be given before only. Some customers were not knowing about the AMC (Annual maintenance cost). The dealer should suggest it before only to all the customers.
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The customers to please interact with the service advisor about their problems.
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Workplace should be increased for repairing as there is a queue formed in the workshop.
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Washing space should be increased.
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Orig Origina inall spare spare parts parts in goo good d condi conditi tion on shoul should d be suffi sufficie cient ntly ly avail availabl ablee in the the workshop as & when required by the customers.
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At least two supervisors and service engineer should be present in the workshop to see whether the mechanics mechanics are properly doing the work and they need to guide them time to time.
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At least 4 mechanics professional as well as non professional, are being given training in a year rather than two.
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Road test should be taken for every vehicle after the repairing is finished.
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One service advisor should always be there when the customer arrives in the front office to guide them.
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A toll free number should be provided so that customers can call anytime to check the status of work done.
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A good ambience and cafeteria facility should be created at the service station to make whole exercise enjoyable.
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There should be separate washroom for customer and staff.
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They must follow up with the customer because that gives the impression that Piaggio is really caring for them.
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CONCLUSION
CONCLUSION Customer Satisfaction plays pivotal role in any company’s improvement and its the ultimate goal of any organization. It is great a learning experience to work with Piaggio Vehicles Pvt. Ltd. I would like to conclude that three wheelers and light commercial commercial vehicles have great market potential. Department of Management Sciences (PUMBA)
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During the project I learned about three wheeler products of Piaggio Vehicles Pvt. Ltd. & the customers view about the product performance. I also came to know different views of the customers about the services provided by the service work stations. I also suggested some of my views to the customers and also to the S. P. Enterprise, Baramati Baramati (dealer) how they can make their service much better. I understood understood the customer’s customer’s problems, found the solutions with the service advisor and explained to them. From the survey I found that some customers are dissatisfied with the product quality and some are dissatisfied with the services provided by the dealer. As the study concentrates to find the satisfaction level of customers of PVPL three wheelers vehicle and from the findings it can be concluded that almost every area needs impro improve veme ment nt whet whether her it is produc productt quali quality ty,, servi services ces or spare sparess provid provided ed by the deale dealer r workshop. If these areas are improved systematically there is no doubt that customer will receive more satisfaction and the future of this company will be glorious in the field of automobile. automobile. At last I would say that I enjoyed every moment working with Piaggio Vehicles Vehicles Pvt. Ltd.
QUESTIONNAIRE •
Customer Name
:
•
Address
:
•
Telephone number
:
•
Vehicle Details
:
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•
o
Registration number
:
o
Model Name
:
o
Purchased date
:
o
Engine number
:
o
Chassis number
:
Distance travelled o
Total distance
:
o
Driven by Owner
:
o
Driven by Driver
:
o
Traveled distance per day
:
o
For how many distance are
:
you giving your vehicle for servicing? •
Customer Business Details
:
•
If you had any other Vehicles
:
•
Your rating for the dealer (out of 5)
:
•
How many PVPL vehicle have you used in the past 5 years?
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Are you satisfied with the overall performance?
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Will you suggest others to buy Piaggio vehicles?
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When was the last time your Piaggio vehicle was serviced with a PVPL dealer or authorized service station?
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Where did you take it for service? (Name of the dealer)
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How was the overall experience?
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Did you have to make an advance booking? •
If your vehicle was under warranty was it immediately immediately accepted or it took time for a decision to be taken?
•
When the vehicle arrived at the service station, how long did it take for the vehicle to be taken into the workshop and open job card?
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Were the spare parts available in sufficient quantity and of proper quality?
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•
Was the pricing of spare parts fair enough?
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Are the spare parts available easily whenever needed?
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How satisfied are you with the performance quality of Piaggio Ape?
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How frequently the maintenance costs occur?
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Did you interact with service advisor about your problem? Did he understand the problems?
•
Was a road test taken?
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Did the workshop give you a proper estimate of time and cost?
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Was it delivered on time?
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How frequently you change the tyres and oil?
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What is the mileage of the vehicle?
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Did you go back to the workshop for the same problem shortly afterwards?
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How do you find the competence of mechanic in the workshop? Do they know their jobs well?
•
Will you recommend others for service in this workshop?
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Are you happy with the cleanliness and workshop infrastructure?
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If you could make one suggestion that will help the dealer and PVPL to improve their service to customers like you, what would be it?
•
What is your overall rating? (out of 5)
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