Sales Promotion and Requirement of Buses in School Eicher-Motors.doc

INTRODUCTION

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INTRODUCTION Eicher Motors Ltd., incorporated in the year 1982, is a Large Cap company (having a market cap of Rs 39590.66 Cr.) operating in Auto sector. Eicher Motors Ltd. key Products/Revenue Segments include Automobile - 2 Wheelers which contributed Rs 1763.06 Cr to Sales Value (91.93% of Total Sales), Spare Parts & Components which contributed Rs 147.62 Cr to Sales Value (7.69% of Total Sales), Scrap which contributed Rs 4.40 Cr to Sales Value (0.22% of Total Sales), Other Operating Revenue which contributed Rs 1.56 Cr to Sales Value (0.08% of Total Sales), Export Incentives which contributed Rs 1.12 Cr to Sales Value (0.05% of Total Sales), for the year ending 31-Dec-2013. For the quarter ended 30-Sep-2014, the company has reported a Standalone sales of Rs. 816.01 Cr., up 9.90% from last quarter Sales of Rs. 742.53 Cr. and up 78.33% from last year same quarter Sales of Rs. 457.59 Cr. Company has reported net profit after tax of Rs. 140.98 Cr. in latest quarter. The company’s management includes Mr.M J Subbaiah, Mr.Prateek Jalan, Mr.Priya Brat, Mr.R L Ravichandran, Mr.S Sandilya, Mr.Siddhartha Lal, Mr.B Govindarajan, Mr.K Ramesh, Mr.Lalit Malik, Mr.Manhar Kapoor, Mr.N Krishnan, Mr.Shaji Koshy, Mr.Manhar Kapoor. Company has Deloitte Haskins & Sells as its auditors. As on 30-Sep-2014, the company has a total of 27,102,783 shares outstanding.

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History Eicher Motors is a commercial vehicle manufacturer in India. The company's origins date back to 1948, when Goodearth Company was established for the distribution and service of imported tractors.In 1959 the Eicher Tractor Corporation of India Private Ltd. was established, jointly with the Eicher tractor company, a German tractor manufacturer. In 1960 the first tractor produced in India was put on the market. Since 1965 Eicher in India has been completely owned by Indian shareholders. The German Eicher tractor was partly owned by Massey-Fergusonfrom 1970, when they bought 30 percent. MasseyFerguson bought out the German company in 1973. In 2005 Eicher Motors Ltd. sold their tractors and engines business to TAFE Tractors (Tractors And Farm Equipment Ltd) of Chennai, the Indian licencee of Massey Ferguson tractors. In October 1982 a collaboration agreement with Mitsubishi for the manufacture of Light Commercial Vehicles was signed in Tokyo and in the same period the incorporation of Eicher Motors Limited also took place. In February 1990, Eicher Goodearth bought 26% stake in Enfield India Ltd and by 1993 Eicher acquired a majority stake (60% equity shareholding) in Enfield India. In July 2008, EML and Volvo Group's 50:50 joint venture VE Commercial Vehicles (VECV) designs, manufactures and markets commercial vehicles, engineering components and provides engineering design. In July 2012, EML and Polaris Industries Inc, USA announced a 50:50 joint to design, develop, manufacture and sell a full new range of personal vehicles.

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Indian Automobile Industry India is an emerging country with huge potential. The domestic economy is now growing at around 8-9% per annum and India’s importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the centre of India’s new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturer’s product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing centre that offers the global automotive industry solution high up the automotive value chain.  India eyes 25 million automotive jobs.  India's GDP is set to double over the next decade  In percentage terms, the automotive industry's contribution should also double.  In dollar terms, the sector's contribution is set to quadruple to some $145bn With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level 4

of 1 million four-wheeled vehicles a year, plus a further 5 million two- and threewheelers. The automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 percent over the past five years, the Economic Survey 2011-12 tabled in parliament on 2nd July’10 said. The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy, a finance ministry statement said. The automobile industry, which was plagued by the economic downturn amidst a credit crisis, managed a growth of 0.7 percent in 2011-12 with passenger car sales registering 1.31 percent growth while the commercial vehicles segment slumped 21.7 percent. Indian Automobile industry can be divided into three segments i.e. two wheeler, three wheeler &four wheeler segment. The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country. And India is considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market is catered by players like EICHER Motors, Ashok Leyland, Volvo, Force Motors, Tata Motors etc.  Key Facts: • India ranks 12th in the list of the worlds top 15 automakers • Contributes 5% to the GDP • Production of four wheelers in India has increased from 9.3 lakh units in 200304 to

88 lakh units in 20011-12

• Targeted to be of $ 145 Billion by 2016 5

• Exports increased from 88,000 units in 2002-03 to 5,80,000 units in 2011-12 Market share

Market share of Light commercial vehicles in India.

Market share of Medium and Heavy Commercial Vehicles in India.

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Eicher Motors Limited

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EICHER COMMERCIAL VEHICLES The Commercial vehicle division was established in 1986 in collaboration with Mitsubishi Motors Japan and is one of the leading manufacturers of commercial vehicles in India having capacity of manufacturing 38,000 Commercial vehicles. The Product range includes 5 ton, 7 ton, 9 ton, 11 ton, 16 ton & 25 ton GVW categories trucks, tipper, trailers; Bus range includes City buses, School bus, luxury coach, Intercity CWC, Nova 200; Ready-To-Use application vehicles Around 85 RTU built vehicles to suit a diverse range of applications. The manufacturing plant equipped with state-of-art facilities with stringent quality control norms - practices like Kaizen, Just-in-time, TQM and TQC etc. and State of the art R&D set up helping the commercial vehicles unit to serve their customers better.

 Diagram showing diversifications in various fields by Eicher Motors Limited with their percentage and capital distribution. EICHER’S CV BUSINESS Eicher is the third largest player in the Indian Commercial Vehicles market: 8

– It leads in the LCV segment with 27% market share in domestic 5-12T cargo segment in FY 07. – It is gaining momentum in the HCV segment with successful launch of 16T, 25T, Tipper and Passenger segments and 1.8% domestic cargo market share in FY 07 implying a growth of 32.9% in sales volume over FY 06. Eicher’s CV business is well positioned to tap the incumbent growth in the CV industry owing to its: –Established track record and stronghold in LCV segment –Strong brand equity, an established Marketing and Distribution Network and cost competitive R&D and manufacturing base providing a ready platform for foray in HCV segment. Eicher – the third largest player in the industry – is well set to leverage its dominant presence in LCV segment to gain significant market share in the fast growing HCV Segment With the introduction of new products and upgrading of existing products across the range, Eicher poised for higher volumes. EICHER CV BUSINESS – AN OUTLOOK

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Industry on Fast Track • CV industry (5T & above) has grown by 25.4% with 355,761 vehicle s sold in FY 07 over last year. • Improving road infrastructure creating market opportunities for high performance products. Strong Position in LCV Segment • Strong position in LCV segment with market share of 27% in 5 -12T domestic cargo segment. • Absence from Sub 5T category leaves significant room for further expanding the product portfolio. • Established track record and Brand Equity, recognized for superior product quality/specifications.

Ready Platform for Successful HCV Foray • Successfully launched 16T, 25T, Tipper and Passenger segments with an indigenously designed product range. • Various success stories in segments and geographies, that would be replicated pan-India with expanding sales & marketing infrastructure and focused marketing push. • New products on the verge of being launched, providing significant opportunity to capture wider spectrum of the market and expanding customer segments. • Incumbent Brand Equity to facilitate successful foray into lucrative HCV market. Sales and Marketing Infrastructure • Strong dealer network in West, Central and South India

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• Strengthening the dealership network, primarily to increase geographical coverage • Sales & Marketing setup was historically more focused on LCV. Significant progress made to gear up the same to cater to HCV segment. Low Cost Manufacturing and Product Development • Established R&D infrastructure and proven skill set. • Proven capability to develop new products in short timeframe and at minimal development cost, giving crucial time to market and cost advantage. • Constantly evolving supply chain management with robust supplier base. • Optimized manufacturing set-up with a good mix of “Make and Buy”. Management and Engineering Skill Set • Qualified and motivated management with established track record of change management, business integration and new product development. • Strong engineering and product development skills. Product Range of Eicher Motors Ltd.  LEADING THE WAY TO Profitability Leveraging 25 years of local presence and international Partnerships to drive Modernization in the Indian transportation industry.

Trucks

Buses

Special Applications

Engines

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Non-Automotive

The Eicher range of Buses & Chassis is a contemporary offering of superior vehicle performance with safety features, superior comfort and redefined styling. The range comprises of:

Buses Eicher Offers a wide range of options in the Buses. There are two range of Built up buses - Skyline & Starline with a seating capacity starting from 16 seater till 65 seater. As per the requirement of the customers, Eicher also offers a wide range of chassis starting from a 12 seater capacity till the 65 seater Capacity. Eicher buses are trusted by the customers for the best in class fuel efficiency. School Buses Eicher introduced “SKYLINE - The First Safe School Bus” in India, developed in association with IRTE (Institute of Road Traffic Education) in the year 1996, thereby pioneering the concept of School Bus. The school bus specific features have now become a norm in the industry. Apart from being safest the popular

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Skyline school bus is now available in enhanced features, superior aesthetics & increased passenger comfort.

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Staff Buses Eicher Skyline has made staff commutation as comfortable as it can be. Aesthetic superiority, high passenger comfort & Economical performance has made this bus class apart. The faith of customers & industry is reflected with the fact that Skyline Executive was awarded with CV-Apollo Award 2010 for “LCV" Bus of the year.

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City Buses The latest offering from Eicher - the Rear Engine Semi Low Floor (RESLF) bus has been developed in line with the guidelines laid down by the Ministry of Urban Development as applicable to Mass Urban Transportation needs. This offering has been received with lot of optimism & excitement by various State Transport Undertakings, City Administrations and Municipal Bodies across India. Eicher also offers a wide range of products in the Mini, Midi and Heavy buses for City Bus Deployment. The products have been designed to suit the frequent startstop duty cycle of intra city operations.



Route Permit Buses Eicher Offers a wide range of chassis for Route permit (Stage Carriage) deployments. Eicher products are well suited for the unique requirement of the route permit application, which necessitates a frequent start-stop operation, overload and rugged usage.

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Trucks Eicher manufactures a range of Haulage (5 T- 31T), Tipper (8T to 25T), Articulated Tractor (40 T) and Special Applications trucks. Eicher Trucks are built to deliver low ‘Total Cost-of-Ownership’. The Eicher haulage trucks’ range includes the E2 Plus series of 5T-13T Light & Medium Duty Trucks (LMD) – tagged as “Mileage KaBadshah” and VE Series of Fuel efficient Heavy Duty Trucks (HD) of 16T-31T. Designed for superior performance with better fuel economy, higher rated payload and faster turnaround these trucks have low operating cost and, high reliability leading to higher profits.

Tipper Eicher Terra series of 16T & 25T offer enhanced value to customers in areas which are critical to a tipper operating economics. The USP of Eicher Tippers is their better uptime and pulling power, stronger aggregates, and the ability to run 15

more number of trips. Terra tippers offer enhanced benefits which accrues from the results of extensive research done by the company in the market understanding of the usage pattern and various duty cycle of its operation. The range makes a significant and positive effect on the operators’ productivity and profitability by offering better fuel economy.



Articulated Tractor Eicher 40.40 (Articulated Tractor) from the VE series is built to “Deliver More!” Fitted with Cummins Engine of 132.5 Kw, Max Torque of 650 Nm and the ET-80 gear box, the optimized power and torque benefits come along with the High Fuel Efficiency, stronger aggregates which offer high reliability and durability. The soft suspended Cabin offers higher driving comfort which means faster

turnaround and more trips leading to higher revenues.

.

Special Applications Eicher produces an efficient range of Special Application trucks which have been envisioned and developed to suit the specific requirements of:

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Special Applications Eicher produces an efficient range of Special Application Vehicles which are used as for various applications as Troop Carriers, Garbage Tippers, Water Containers, Mild Steel Container & Ambulances. Eicher Ambulance is a state of art van with all facilities pertaining for an emergency medical vehicle. Vehicle is equipped with on board equipments not just for safe and swift transfer of patients but also for providing emergency medical aid.

Mild Steel Container Ready to use from day 1, Eicher MS container options are unique with respect to fine engineering design and flexibility requirements. Engineered design, Fine workmen-ship and rugged but light in weight are few features of Eicher containers offered with 18 months of warranty on container.

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Troop Carrier Its about Determination and Conquering the spirit, Eicher vehicles deliver on these.

Water Tanker Low operating cost, efficient and durable water tankers. Fully built Water Tankers options available in 3.5 KL, 5KL, 6KL & 9KL

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21

s

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About Volvo Eicher collaboration

Company Profile:

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VE COMMERCIAL VEHICLES manufactures a range of commercial vehicles with GVW of 5 to 11 tons. It has been outperforming the industry for the past six years. The sales growth in its LCV segment has been higher than that of the industry. In technical and financial collaboration with Mitsubishi Motors Corporation of Japan, EML started manufacturing the CANTER range of vehicles in 1986 at its plant at Pithampur in Central India. The plant is a "state-of-the-art" facility with an integrated capacity of around 20000 vehicles per annum.

Basic Information Company Name: Business Type: Eicher Sells: Eicher Buys: Address: Number of Employees: Year Established: Main Markets: . . Total Annual Sales Factory Information Management Certification: Contract Manufacturing:

VE Commercial Vehicles Ltd. (A Volvo Group and Eicher Motors joint venture) Manufacturer Gears, Gearbox, Transmission, Agriculture Gearbox, Planetary Gearbox, Axle, PTO Gearbox, Worm Gearbox forgings, Gear Cutters S.V.Road Above 1000 People 1971 1. South America 2. Eastern Asia 3. Southeast Asia . 4. Africa. 5. North America Above US$100 Million ISO 9001:2008 ISO/TS 16949 OEM Service Offered Design Service Offered Buyer

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ORGANIZATIONAL STRUCTURE

Gallup worldwide Head Head Asian Operations Managing Director India

GM (Research)

Business manager (Research)

Executive

GM (Design & operations)

Business manager (Research)

Business manager (Operation)

Executive Executive

GM (Marketing)

Business manager (Marketing)

Executive Executive

Executive

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Executive

Executive

BRANCH OFFICE

Branch Director

Program Director Assistant Program Director Senior Regional Officer Regional Executive Regional Field Controller Field Controller

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Developing Brand Strategies The CE metric is also a superior tool for developing brand strategies and tactics that attract the most profitable customers. Used as the basis for brand management, segmentation, and positioning, CE supports brand managers in developing strategies that will appeal to the most profitable customer segments. Effective consumer messages must: 

Differentiate -- convey a brand promise that clearly sets the company's products or services apart from its competitors'. This promise must include an emotional component that customers understand.



Excite and Activate -- convey a compelling message that will overcome consumer inertia, perceived risk, and "switching cost" barriers.



Connect -- establish or reinforce an emotional connection with target customers. This serves as the foundation for an enduring customer relationship. Companies successfully acquire and retain customers when they communicate compelling and differentiating brand promises -promises that the company can deliver at all customer touchpoints. Companies must align their activities and performance to turn transactions

into

enduring

relationships.

Companies

that

consistently reinforce a brand promise with performance -- or a customer's expectations with great experiences -- will develop enduring and profitable customer relationships.

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Maximizing Organizational Performance Gallup CE programs are a powerful first step for organizations seeking better financial performance by improving customers' emotional engagement. Organizations can achieve even greater results when they address all points on The Gallup Path. Gallup has developed integrated, comprehensive performance management solutions that support organizations in achieving crucial business goals along The Path. Along with CE11 programs, Gallup offers tools to: 

Devise

and

implement

an

effective

organizational

performance strategy 

Provide executive performance coaching for senior leaders



Measure and improve employee engagement



Recruit and hire world-class performers



Teach all employees to identify, deploy, and develop their strengths



Create an objective and easy-to-use performance appraisal and review system



Develop an effective succession planning system



Design a performance-based compensation system for all roles



Increase sales force effectiveness

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SALES PROMOTION Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the promotional mix are advertising, personal selling, direct

marketing and publicity/ public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. Sales promotion is needed to attract new customers, to hold present customers, to counteract competition, and to take advantage of opportunities that are revealed by market research. It is made up of activities, both outside and inside activities, to enhance company sales. Outside sales promotion activities include advertising, publicity, public relations activities, and special sales events. Inside sales promotion activities includes window displays, product and promotional material display and promotional programs such as premium awards and contests. 28

Sale promotions often come in the form of discounts. Discounts impact the way consumers think and behave when shopping. The type of savings and its location can affect the way consumers view a product and affect their purchase decision. The two most common discounts are price discounts (“on sale items”) and bonus packs (“bulk items”). Price discounts are the reduction of an original sale by a certain percentage while bonus packs are deals in which the consumer receives more for the original price. Many companies present different forms of discounts in advertisements, hoping to convince consumers to buy their products. Point-of-sale displays:

Aisle interrupter: A sign that juts into the aisle from the shelf.



Dangler: A sign that sways when a consumer walks by it.



Dump bin: A bin full of products dumped inside.



Bidding portals: Getting prospects



Glorifier: A small stage that elevates a product above other products.



Wobbler: A sign that jiggles.



Lipstick Board: A board on which messages are written in crayon.



Necker: A coupon placed on the 'neck' of a bottle.



YES unit: "your extra salesperson" is a pull-out fact sheet.



Electroluminescent: Solar-powered, animated light in motion.



Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased.



Sampling: Consumers get one sample for free, after their trial and then could decide whether to buy or not.

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Online deals vs. In-store deals There are different types of discounts available online versus in the stores. Onshelf couponing: Coupons are present at the shelf where the product is available. * On-line couponing: Coupons are available online. Consumers print them out and take them to the store.Although discounts can be found online and in stores, there is a different thought process when shopping in each location. For example, “online shoppers are more price-sensitive because of the readily available low search cost and direct price comparisons”. Consumers can easily go to other websites and find better deals as opposed to physically going to various stores. In addition, buyers tend to refrain from purchasing bonus packs online because of the skepticism (of fraud and scams) that may come with the deal. Since “…bonus packs are more difficult than price discounts to process online, they are more difficult and effortful for the consumer to understand”. For example, a buy-oneget-one-free deal on a website requires more work than the same bonus pack offered in a store. Online, consumers have to deal with payment processing, shipping and handling fees, and days waiting for the products’ arrival, while in a store, the products are available without those additional steps and delays.

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Trade sales promotion techniques 

Trade allowances: short term incentive offered to induce a retailer to stock up on a product.



Dealer loader: An incentive given to induce a retailer to purchase and display a product.



Trade contest: A contest to reward retailers that sell the most product.



Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your product on the spot.



Training programs: dealer employees are trained in selling the product.



Push money: also known as "spiffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function . Retail Mechanics Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing initiatives. 

Buy x get y free a.k.a. BOGOF for Buy One Get One Free



Three for two



Buy a quantity for a lower price



Get x% of discount on weekdays.



Free gift with purchase

Consumer Thought Process Meaningful Savings: Gain or Loss

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Many discounts are designed to give consumers the perception of saving money when buying products, but not all discounted prices are viewed as favorable to buyers. Therefore, before making a purchase, consumers may weigh their options as either a gain or a loss to avoid the risk of losing money on a purchase. A “gain” view on a purchase results in chance taking. For example, if there is a buy-one-get-one-half-off discount that seems profitable, a shopper will buy the product. On the other hand, a “loss” viewpoint results in consumer aversion to taking any chances. For instance, consumers will pass on a buy-three-get-onehalf-off discount if they believe they are not benefitting from the deal. Specifically, consumers will consider their options because “…the sensation of loss is 2.5 times greater than the sensation of gain for the same value”. Impulse Buying Impulse buying results from consumers’ failure to weigh their options before buying a product. Impulse buying is “any purchase that a shopper makes that has not been planned… [and is] sudden and immediate”. For example, if a consumer has no intention of buying a product before entering a store, but purchases an item without any forethought, that is impulse buying. Product manufactures want to promote and encourage this instant purchase impulse in consumers. Buyers can be very quick to make purchases without thinking about the consequences when a product is perceived to be a good deal. Therefore, sales companies “increasingly implement promotional campaigns that will be effective in triggering consumer impulse buying behavior” to increase sales and profit. Political issues Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime

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in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964. Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls.

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RESEARCH OBJECTIVES

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RESEARCH OBJECTIVE  To identify the area of sales promotion of Eicher Motor Ltd.  The main objective of conducting research is to identify the marketing strength and weakness of Eicher Motors.  Another objective is to judge profitability and marketing soundness of the Eicher Motors.  To analyze the soundness of the company with the help of marketing management tools.  To study the trends and reasons for deviation.  Market mapping of Eicher motors  To understand the Customer satisfaction level  Market Analysis of Eicher Motor Ltd.  Customer Feedback

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY  DATA COLLECTION INSTRUMENT: Our data collection method is interrogative/communication study in form of “Personal Interviews” through questionnaire survey.  SAMPLING METHOD:  Survey Sampling  Random sampling  Systematic sampling  Stratified sampling  Convenience sampling  Judgment sampling  SAMPLE DESCRIPTION: Primary Data is collected from Questionnaire survey. Secondary data is collected from internet and journals.  DATA ANALYSIS METHOD:

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Variables are developed to capture respodent feelings and emotions with respect to their attitude towards EICHER MOTORS products and services.  SCALING TECHNIQUE: Scale of 1 to 5 rating is used in which 1. Extremely dissatisfied. 2. Dissatisfied 3. Neither satisfy nor dissatisfy 4. Satisfy 5. Extremely satisfy FINDINGS AND ANALYSIS:  Majority of the customers were quite satisfied with the:  Eicher Light Commercial Vehicles,  Prices of LCVs,  Showroom experience with dealers,  Servicing of LCVs,et  Further, the study highlights the following drawbacks:  Customers were quite upset with the HCV MOTORS.  Servicing of HCVs is below par,

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 Spare parts are not available easily and customers were compelled to  wait.  Mechanics handling HCVs lacked skills and expertise.  Workshop are not in center of city, they are in far off areas.  Prices of spare parts are very high as compare to competitors like Tata and Ashok Leyland,  The product life of the vehicle is very less,  The strength of the cabin body is miserable,it’s just like a flying coffin,  Safety worthiness of Eicher vehicles are very low, and  Other value added services of the company are merely available at few selected places.  Consumer are less aware of extra facilities provided by company.

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CUSTOMERS SATISFACTION: -

“Satisfaction is the level of persons felt state resulting form comparing from comparing a product perceived performance in relation to persons expectations”. Thus satisfaction level is a function of the difference between perceived performance and expectations. A customer could experience one of their Broad levels of satisfaction. a.

It performance falls short of expectations the customers to dissatisfied.

b.

It performance matches the expectations the customers is satisfied.

c.

If performance exceeds the expectations the customer is Highly Satisfied.

For customer centered companies customers satisfaction is both a goal and a marketing tool. Following are the methods of tracing and measuring customer’s satisfaction. a.

Complain & suggestion system.

b.

Customer’s satisfaction surveys.

c.

Lost customer analysis.

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The questioner was given by Gallup organization itself and we have to fill up it by the Help of Dealers & Customers. Dealers database is provided by Gallup itself & we have to do the hunting of the customers in any of the places.

DATA ANALYSIS & INTERPRETATION

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S.1

People buy water cooled models because they are ignorant about merits of air cooled models. No. of Respondents =

50 Table No. 1

Strongly agree (5)

13

Moderately agree (4)

7

Neither agree nor disagree (3)

6

Moderately disagree (2)

6

Strongly disagree (1)

18

Strongly disagree (1) 36%

Strongly agree (5) 26%

Neither agree nor disagree (3) 12%

Moderately disagree (2) 12%

Fig. 1 Mean likert rating =2.78

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Moderately agree (4) 14%

Inference:

Likert rating of 2.73 and option wise break up of the Response, both shows general disagreement to the proposed statement.

According to dealers perception about the customer buying water cooled sets, amidst availability of good air-cooled sets, ignorance, is not the reason behind it rather, it was learnt there are many barriers behind it. The most prominent are:- Psychological Barrier and Perceived technological deficiency. People feel aircooled sets create problems in the long run, like oil spillage, over-heating, diminishing performance etc. Further watercooled sets do have some inherent problems with it but people are accustomed to it and consider it as safe bet against air-cooled ones.

But it was also found out that air-cooled sets are fairly popular among industries and corporate for they require little care from the operators.

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S.2.

People ask for most advertised/publicized /visible models.

No. of Respondents =

50 Table No. 2

Strongly agree (5)

28


10


4


1


7


Moderately disagree (2) 2% Neither agree nor disagree (3) 8%

Strongly agree (5) 56% Moderately agree (4) 20% Fig. 2

Mean likert rating

=4.02

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Inference: Likert rating of 4.2 and only 16% of moderate and strong disagreement against the statement suggests overwhelming acceptance of the proposed statement.

However during the survey it was learnt that visibility creates the most powerful impact in the engine market, rather than advertising and publicity. People have herd mentality and prefer to buy brand and model visible in the vicinity. Rural folks have conservative mindset and they want a ‘secure’ buy rather than venturing with an unknown brand in the market.

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S.3.

People buy because of price rather than anything else.


50 Table No. 3

Strongly agree (5)

3


13


5


4


25 Fig. 3

Mean likert rating

=

2.3


Moderately agree (4) Likert rating of 2.3 and only 32% people agreeing to the statement shows, majority of 26% people don’t buy because of price. However, there is a niche of people in every region who buy purely for price. There are around 6-7% customers in a region buying Neither purely for price while 25-26% people keep price high on the priority of factors influencing Strongly agree nor their buying decision. disagree (1) disagree (3) 50% 10% Moderately disagree (2) 8% Inference:

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S.4.

Customers come with predetermined model and brand to buy.


50 Table No. 4

Strongly agree (5)

26


11


5


3


5

Mean likert rating

Strongly ModeratelyFig. 4 =disagree 4 disagree (1) (2) 10% 6%

Neither Likert agree rating ofnor 4 and 74% of people moderately and strongly agreeing to it, shows that people come with(3) predetermined brands and models to buy. disagree Strongly 10% agree (5) 52% Moderately Inference:

agree (4) 22%

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S.5.

You most of the times change the decision of the customer.


50 Table No. 5

Strongly agree (5)

14


26


4


2


4


Moderately disagree (2) 4% Neither agree nor disagree (3) 8%


Moderately agree (4) 52% Fig. 5 Mean likert rating

=

3.88

Inference: Likert rating of 3.88 and moderate agreement of 52% of dealers shows that they are in partial agreement of the statement. Hence , it may be inferred that dealers does not change the buyers’ decision most of the times but many times they do so.

48

S.6. you get sufficient margin in sale. No. of Respondents =

50 Table No. 6

Strongly agree (5)

9


8


5


10


18 Fig. 6

Mean likert rating

=

Strongly disagree (1) 2.6 36%


Inference

Moderately Likert rating of 2.6 with 56% of people clearly not agreeing to the statement,agree shows (4) widespread resentment amongst dealers, regarding the margin they get in sales. It was also 16% revealed during the survey that Kirloskar dealers get 4-5% margin, Field Marshal dealers get 3-4% margin, Topland dealers get 8-9% margin, Eicher dealers Neither get 6-7% margin, Moderately Kisan & president dealers get 5% margin. General expectation of dealers is that they agree nor disagree should get 10-12 % margin in sale,(2) so that they could bear the cost of field activities and disagree (3) 20% servicing. 10% S.7. you get adequate incentives and non monetary benefits, like 49raveling opportunities, to promote the brand you are dealing in. No. of Respondents =

50 Table No. 7

Strongly agree (5)

7


14


1


3


25

49

Fig. 7



Moderately agree (4) 28% Neither agree nor disagree (3) 2%

Moderately disagree (2) 6% Mean likert rating

=

2.48

Inference: Likert rating of 2.48 with 50% dealers strongly disagreeing and 56% moderately & strongly disagreeing, while 42% strongly and moderately agreeing to the statements, denotes, different expectation of dealers from concerned brand owners. Whereas Kirloskar dealers get target incentive, Topland dealers get target discount and Field Marshal distributor get gifts like, T.V., V.C.P., Refrigerators etc, on target fulfillment. Many dealers get travelling opportunities, once or twice a year. However this is not the point of contention and many felt they would be happy if such tours are organized once in two years, so that they too may save their precious time. S.8.

You are brand loyal and will stick to the brand you are dealing in.


50 Table No. 8

Strongly agree (5)

22


7


9


3

50


9



Neither agree nor disagree (3) 18% Mean likert rating


Moderately agree (4) 14% =

3.5

Inference Likert rating of 3.5 suggest reservations of dealers in admitting their brand loyalty. Thus, dealers are not sure if they would stick to the brand they are dealing in. this shows the extent of uncertainties in this segment of sale.

51

S.9.

you will change the brand, for higher margin, with similar sales potential.


50 Table No. 9

Strongly agree (5)

17


15


4


3


11



Neither agree nor disagree (3) 8%

Moderately agree (4) 30% Fig. 9

Mean likert rating

=

3.68

52


RANK IN ORDER OF COMPETITORS OF KIRLOSKAR Table No. 10

RANK

BRAND

POINTS

1

Field Marshal

117

2

Eicher

57

3

Ashok leyland

34

4

Cummins

33

5

Vishal Bharat

24

6

Prakash

22

7

Topland

16

8

Crown

12

9

Atul

11

9

Ajit

11

9

Usha

11

12

Mercury

9

Perception of extent of competition given by other brands to Kirloskar.

53

POINTS Crown Ajit Usha 3%Atul 3% 3% Topland 3% 4%

Mercury 3%

Field Marshal 33%

Prakash 6% Vishal Bharat 7% Cummins 9%

Eicher 16% Ashok leyland 10%

Fig. 10 Perception of extent of competition given by other brands to Field Marshal

54

Table No. 11 RANK

BRANDS

POINTS

1

Kirloskar

82

2

Topland

61

3

Satyajit

22

4

Anil

15

5

Indrajit

8

6

Mercury

7

7

Sonnet

6

7

Progressive

6

9

Bharat

5

Perception of extent of competition given by other brands to Field Marshal.

Sonnet 3% Indrajit 4%

Mercury 3%

Progressive 3%

Bharat 2%

Kirloskar 39%

Anil 7%

Satyajit 10% Topland 29%

Fig. 11 Perception of extent of competition given by other brands to Topland Table No. 12

55

RANK

BRANDS

POINTS

1

Kirloskar

8

2

Field Marshal

6

3

Mercury

3

3

Prakash

3

Perception of extent of competition given by other brands to Topland.

Mercury 15%

Prakash 15%

Kirloskar 40%

Field Marshal 30%

Fig. 15

Perception of extent of competition given by other brands to Eicher

56

Table No. 13 RANK

BRANDS

POINTS

1

Kirloskar

10

1

Field Marshal

10

3

Topland

8

4

Anil

4

5

Sonnet

3

6

Satyajit

2

Perception of extent of competition given by other brands to Eicher

Sonnet 8%

Satyajit 5%

Kirloskar 27%

Anil 11%

Topland 22% Field Marshal 27%

Fig. 13

Perception of extent of competition given by other brands to Usha

57

Table No. 14 RANK

BRANDS

POINTS

1

Kirloskar

24

2

Field Marshal

12

3

Bharat

5

4

Topland

4

5

Prakash

3

6

Sonnet

2

Perception of extent of competition given by other brands to Usha

Topland 8%

Prakash 6%

Sonnet 4%

Bharat 10%

Kirloskar 48%

Field Marshal 24%

Fig. 14 Perception of extent of competition given by other brands to Ashok Leyland

58

Table No. 15 RANK

BRANDS

POINTS

1

Kirloskar

3

2

Tata

2

3

Cummins

1

Cummins 17%

Kirloskar 50%

Tata 33%

Fig. 15

Perception of extent of competition given by other brands to Cummins

59

Table No. 16 RANK

BRANDS

POINTS

1

Kirloskar

3

2

Ashok Leyland

2

3

Tata

1

Tata 17%

Fig. 16

Perception of extent of competition given by other brands to remaining brands

Kirloskar 50%

Ashok Leyland 33%

60

Table No. 17 RANK

BRANDS

POINTS

1

Kirloskar

26

2

Field Marshal

20

3

Topland

19

4

Prakash

10

4

Satyajit

10

4

S.A Tiger

10

7

Harvest

9

7

Progressive

9

9

Sonnet

8

9

Varun

8

Progressive 7%

Sonnet 6%

Varun 6%

Kirloskar 19%

Harvest 7%

Field Marshal 16%

S.A Tiger 8% Satyajit 8%

Prakash 8%

Topland 15% Fig. 17

Measure of Brand power of each brand Assuming each dealer rates his brand as number one in the territory the brand power of individual brands has been calculated based on the same previous formula. 61

Table No. 18 Brands

Points gained by own dealers

Points given by other dealers

(A)

(B)

Kirloskar

430

156

586

Field Marshal

279

165

444

Eicher

54

57

111

Usha

78

11

89

Topland

32

108

140

Ashok leyland

9

36

45

Cummins

9

34

43

232

186

418

Others

Brand power (A+B)

62

O

th

e

rs

s m m in

n le

k o

C u

yl a

d la

n

a T op

U sh

r e E ic h

h rs

M a

ld

A sh

F

ie

K ir lo

sk

a

r

a

l

d

Fig. 18 700 600 Brand order in Rajasthan 156 500 1. Kirloskar 2.Field Marshal 400 165 3.Topland 4.Eicher 5.Usha 6.Ashok Leyland 7. Cummins. 186 300 430 200 11 57 279 108 232 36 34 100 54 78 32 9 9 0

After completing the targeted questioner I found that: Satisfaction Level of customers for Eicher Dealers

70 60 50 40

Yes No

30 20 10 0

Satisfaction Level of customer for Eicher

63

100 90 80 70 60 Yes No

50 40 30 20 10 0

Brand Loyalty

64

yes No

What Customers like most in Eicher?

65

60

50

40 Weight Oil Consumption Body All

30

20

10

0

66

67

CONCLUSION



Here The Gallup Organization offers performance management solutions,

development

programs,

and

publications

that

help

organizations and individuals capitalize on talent to increase productivity and effectiveness. 

The Gallup Organization offers performance management solutions, development programs, and publications that help organizations and individuals

capitalize

on

talent

to

increase

productivity

and

effectiveness. 

The Gallup Path This innovative program provides Human Sigma strategies that executives and managers can use to emotionally engage their workforces and customers and maximize their organizations' bottom-line results.



On my project of CE what I found was that most of the customers’ Where highly satisfied with product provided by EICHER.

68

RECOMMENDATIONS AND SUGGESTIONS

69

RECOMMENDATIONS  Quality of HCV should improve.  Spare parts should be made more easily available.  Product quality and its life should improve.  Competition level is very high so company should focus on marketing.  Services centers should increase and should be in center and approcable place.  Try to push sales of HCV.  Value added facilities like Eicher On Road (EOS), night service, fleet software, etc. should be made available everywhere.

70

BIBLIOGRAPHY

71

BIBLIOGRAPHY Books:

Donald R. Cooper, Pamela S. Schindler(2003), “ Business Research Methods”,Tata McGraw-Hill. Roger D. Blackwell, Paul W. Miniard, James F. Engel(2001), “ Consumer Behavior”, Vikas Publishing House. Kotler, Philip & Zaltman, Gerald (July 1971). "Social Marketing & Sales Propmotion : An Approach to Planned Social Change". Journal of Marketing 35 (3). pp. 3–12.

Websites: http://trucks.eicherworld.com

72

QUESTIONNAIRE

73

QUESTIONNAIRE Name: Address: Telephone No.: E-mail: Fax: 1.For how many years you are in this business -----------------2.Please indicate the range of engines you are dealing in a)0-14HP

b)15-40HP

c)>40HP

3.Rank in order , the range of engines contributing to your sale during last three years. a)0-14HP Vol .

b)15-40HP vol .

c)>40HP vol .

Please answer the following questions with specific reference to the range of 15-40hp engines only 4.Which type of engines are available with you in this range. a)air cooled b)water cooled c)both 5.Please indicate the price range in which 15-40 hp engines are available. Rs---------------

RS---------------

Rs---------------

74

6.Is there any other dealer in your territory? Yes / no If yes, then please name them, 1______________________ 2______________________ 3____________________ 7.1Please rank in order the name of competitors in your territory. 1…………………………………… 2………………………………….. 3………………………………….. 4………………………………….. 5………………………………….. 7.2 Why people prefer the brand you are dealing in against other brands available in the market

7.3 why do people buy the No. 1 brand

8.Please explain the kind of strategy adopted by you to sell i.e., competitive ,infringement,borrowed from the company's policy. e.g.:-credited / market support by the company / field activities

9.Please explain how do you manage infringement.

10.Please , explain how do you perceive future of your product in market.

75

pricing

11.What are the warranty / after sales service contract available with you ?

12 . What are the terms for financing available with you ? ( banks / financial instn./ private )

SURVEY OF ENGINE SALES NAME ADDRESS CONTACT PERSON Please react to the following statements on the given scale , about the brand you are dealing in.Here, 1=strongly disagree 2=moderately disagree 3=neither agree nor disagree 4=moderately agree 5=strongly agree

1)People buy water cooled models because they are ignorant about merits of air cooled models. (_) (_) (_) (_) (_) 1 2 3 4 5 2) People ask for most advertised/publicized / visible models (_) (_) (_) (_) (_) 1 2 3 4 5 76

3)People buy because of price rather than anything else. (_) (_) (_) (_) (_) 1 2 3 4 5

4)Customers come with predetermined model and brand to buy. (_) (_) (_) (_) (_) 1 2 3 4 5

5)You most of the times change the decision of the customers. (_) (_) (_) (_) (_) 1 2 3 4 5

6)You get sufficient dealership margin in sale. (_) (_) (_) (_) (_) 1 2 3 4 5

7)You get adequate incentives and non monetary benefits, like travelling opportunities, to promote the brand you are dealing in. (_) (_) (_) (_) (_)

1

2

3 4

5

8)You are brand loyal and will stick to the brand you are dealing in. (_) (_) (_) (_) (_)

1

2

3 4

5

9)You will change the brand , for higher margin , with similar sales potential. (_) (_) (_) (_) (_)

1

2

3 4

5

77

Sales Promotion and Requirement of Buses in School Eicher-Motors.doc

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