Studying of the Customer Relationship Management for AGR Automobiles

A Project Report On

“Studying of the Customer Relationship Management for AGR Automobiles Varanasi�

Master of Business Administration

1

Acknowledgement

My Special Thanks and gratitude to Mr. XYZ (CEO), of AGR automobiles for his generosity, cooperation and superb guidance that helped me in completion of my project report.

I am also thankful to Mr.XYZ, (Director) XYZ, PUNE and to my Internal Gudie, XYZ, for their encouragement and motivation which was a great source of inspiration.

I am extremely grateful to Ms XYZ (Customer care Manager) and the entire staff of AGR automobiles for their cooperation and generosity. Their experience helped me a lot in doing my project.

XYZ MBA

2

TABLE OF CONTENT SERIAL No.

TITLE

PAGE No.

CHAPTER-1 1.1

RATIONAL STUDY

2

CHAPTER-2 2.1

PROJECT TITLE

4

2.2

OBJECTIVE OF STUDY

4

2.3

SCOPE OF THE STUDY

4

CHAPTER-3 3

PROFILE OF THE COMPANY

5-17

CHAPTER-4 4.

REVIEW OF LITERATURE

18-24

CHAPTER-5 5.

RESEARCH METHODOLOGY

25-31

CHAPTER-6 6.

DATA ANALYSIS & INTERPRETATION

32-40

CHAPTER-7 7.

FINDINGS

42

CHAPTER-8 8.

LIMITATIONS

44

CHAPTER-9 9.

CONCLUSION& RECOMMENDATIONS

46

10

APPENDIX

47-49

11

BIBLIOGRAPHY

51

3

LIST OF TABLES

TABLE 6.1

CUSTOMER’S SATISFACTION FOR AGR AUTOMOBILES

33

TABLE 6.2

WHICH VERSION OF THE MODELS ARE MOSTLY DEMANDED BY THE CUSTOMER’S

34

TABLE 6.3

FEATURES OF MARUTI SUZUKI

35

TABLE 6.4

WHAT IS THE PERFORMANCE OF THE CAR

36

TABLE 6.5

AFTER SERVICING VEHICLE DELIVERED AT THE PROMISED TIME?

37

TABLE 6.6

WHAT RANK YOU WILL GIVE TO MARUTI COMPANY AS FOR THE SATISFACTION LEVEL?

38

TABLE 6.7

WHAT TYPE OF REPOT SHARED BETWEEN CUSTOMER AND DEALER?

39

TABLE 6.8

ABOUT COMPANY AFTER SALES SERVICE

40

4

LIST OF FIGURES

FIGURENO. 6.1

CUSTOMER’S SATISFACTION FOR AGR AUTOMOBILES

33

FIGURENO.6.2

WHICH VERSION OF THE MODELS ARE MOSTLY DEMANDED BY THE CUSTOMER’S

34

FIGURE NO. 6.3

FEATURES OF MARUTI SUZUKI

35

FIGURE NO. 6.4

WHAT IS THE PERFORMANCE OF THE CAR

36

FIGURE NO. 6.5

AFTER SERVICING VEHICLE DELIVERED AT THE PROMISED TIME?

37

FIGURE NO. 6.6

WHAT RANK YOU WILL GIVE TO MARUTI COMPANY AS FOR THE SATISFACTION LEVEL?

38

FIGURE NO. 6.7

WHAT TYPE OF REPOT SHARED BETWEEN CUSTOMER AND DEALER?

39

FIGURE NO. 6.8

ABOUT COMPANY AFTER SALES SERVICE

40

5

CHAPTER -1

Rationale for the Study

6

In today’s intensely competitive, rapidly changing and highly complex environment characterize by diminishing customer loyalty, the need to be market –focused and customer centric is more critical than any other time in past. It is highly imperative for every organization to retain and use valuable information about their customer to enhance their business strategies and product and service offerings. Today, the key focus area of much organization is identification of a link between customer satisfaction and performance. However, satisfaction as the confirmation of expectation has started to be conceptualizing almost as a threshold for customers. The delivery of satisfaction is the minimum the customer expects.

After completing the primary formalities for vocational training, the approach followed for the project was by .having debatable discussion on various topics with the project guide, and keeping in mind the total time duration 8 weeks, the project title “Study of the Customer Relationship Management for AGR automobiles Varanasi” was decided. Primarily, the researcher was given some random idea about this project at AGR automobiles. After having very basic understanding about it’s objective and it’s importance in the organization, helped in understanding the project better so as to make platform for analysis.

The objective behind making this project is to have the knowledge of the practices of Maruti Services by the Marketing Department. Maruti Suzuki India Limited 50% smaller, fewer, lighter and more beautiful. style and design quotient (formerly Maruti Udyog Limited), a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over of the domestic car market. From its very inception,Maruti Suzuki has brought to India,a simple yet powerful apanese philosophy The benefits of product quality, safety and cost consciousness have been fused and filliped in order to present the Indian populace with cars high on the . The extreme relevance of our brands in the Indian car arena, in beat with the lifestyles and desires of our changing nation has made us the market favourites, for over two decades. Gaining ground from strength to strength, we are inspirited now more than ever,to push boundaries and conquer new horizons.

The Indian economy grew at an impressive 9 percent in GDP during 2007-08. Of late, inflation has hardened and oil and certain other commodity prices have shot up, resulting in higher interest 7

rates and an uncertain outlook for the very near term. However, the country's economy is still expected to continue to grow robustly, if at a slightly slower pace.

CHAPTER -2

Objective of the Study

8

Project Title: Study of the Customer Relationship Management for AGR Automobiles Varanasi Objective of project: Primary objective: 

To study the customer awareness about Maruti Suzuki, & AGR Automobiles.

 To enhance the sale of Maruti Suzuki in the showroom.  To know the reason for the loss of inventory.

Secondary objectives  To analyze the customer buying behavior.  To find out the satisfaction level of the customers at AGR automobiles showroom.  To study the effect of event and promotion.  To make various suggestion on the improvement of the AGR automobiles.

Scopes:  Study is restricted to various parts of Varanasi which include: Mahmoorganj, Sigra.  The scope of the study is restricted to Customer Relationship Management only  Time frame-there is limited time of two months June to August 2009

9

CHAPTER -3

Profile of the Company

10

Company Profile Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan.

The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800,based on the Suzuki Alto key car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi.

Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. Maruti Suzuki offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution in the Indian car industry. This car is meant for an average Indian individual which is affordable as well as has 11

elegant appeal. Maruti Suzuki India Ltd. is the result of collaboration of Maruti with Suzuki of Japan. At this time, the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the

decade

ending

1983.

This

was

from

where

Maruti

took

over.

The company has crossed the milestone of becoming the first Indian company in March 1994, by manufacturing in totality one million vehicles. It is known for its mass-production and selling of more than a million cars. Maruti Suzuki India Ltd. is the India's largest automobile company which entered in the market with affirmed aim to render high quality fuel – efficient and low cost vehicles.More than half the number of cars sold in India wear a Maruti Suzuki badge. We are a subsidiary of Suzuki Motor Corporation Japan. We offer full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and sedans DZire, SX4

and

Sports

Utility

vehicle

Grand

Vitara.

Since inception, we have produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other countries. Our turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After Tax at Rs. 12,187 Million.

Sales figure in the year 1993 has reached up to 1,96,820. Maruti comes in a variety of models in the 800 segment. Its cars operate on Japanese technology, pliable to Indian conditions and Indian car users. By the year 1998-99, the company has modernize the existing facilities and expand its capacity by 1,00,000 units.

Recently to ward off the growing competition, Maruti has completed Rs. 4 billion expansion project at the current site, which has raised the total production capacity to over 3,20,000 vehicles per annum. With the coming of each and every year, the total production of the company exceed by 4,00,000 vehicles.

In the small car segment it produces the Maruti 800 and the Zen. The big car segment includes the Maruti Esteem and the Maruti 1000. Along with them, the company also manufactures Maruti

Omni.

Other

models

includes

Wagon

R

and

the

Baleno.

Headquarter in Gurgaon, on 17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. Both in terms of volume of vehicles sold and revenue earned, the company is India's leading automobile manufacturers and the market leader in the car segment. Sales recorded in June 2008, is Rs. 4,753.58 crores.

12

MISSION An Organization’s mission is the purpose or reason for the organization’s existence, means, what the company is providing to society.

“Maruti seeks to create a more prosperous society through automotive manufacturing” Mission critical attitude and fiscal prudence has been a way of life within Maruti, good or bad times notwithstanding. And what has fuelled this over the last 18 months is the Japanese major's 3-G philosophy pushed by Nakanishi, which he refers to as 'going back to basics'. "Arm chair management doesn't help," says Nakanishi. Genba (go to actual spot), Genjitsu (see what's happening) and Gembutsu (identify actual problem) have laid down the framework for Maruti in its 3-year rolling plan till 2010-11. Maruti’s fundamental mission is to contribute to people’s lifestyles, society, and the economy through automotive manufacturing. In upholding this mission, we have always focused on the future of the automobile industry when deciding how best to position our company.

VISION While the global economy is deep in the recession roil and its tremors being felt in India, the country's largest automaker seems unfazed, What is helping Maruti today, is the company's ability to constantly innovate even beyond product ,so the company’s vision is “We have to ensure that any disruption in the environment doesn't jeopardize your market position. If we say this vision in one line then it is “Maruti’s aims to achieve long-term, stable growth in harmony with the environment, the global economy, the local communities it serves, and its stakeholders”.

Facilities

13

Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India.

The Gurgaon facility Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities.The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. More than 50 per cent of our shop floor employees have been trained in Japan. Our Gurgaon facility also houses `K' Engine plant. The `K' family engine plant has an installed annual capacity of 240,000 engines and was commissioned in 2008.

Spread over an area of 20,300 m2, the `K' family engine facility is part of the Rs 9,000 crore investment

plan

drawn

by

Maruti

Suzuki

and

Suzuki

Motor

Corporation.

The next generation `K'engine like all Maruti Suzuki earlier technologies is highly fuel efficient, while offering the best in refinement and performance.It will take the engine technology to the next level in India. A-Star is the first car to be powered by `K' family engine. The forthcoming models will be powered by other `K' family engines The in-line plant layout consisting of Casting, Machining and Assembly processes has high level of automation, effective material handling and inventory reduction techniques in place, aimed for high operational efficiency.

The facility employs global manufacturing best practices like cold testing, 100% on line automated checks to ensure global quality.

The Manesar facility Our Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. At present the plant rolls out World Strategic Models Swift , A-star & SX4 and DZire.The plant has several in-built systems and mechanisms. There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality.

14

The plant is designed to be flexible: diverse car models can be made here conveniently owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high quality. The plant at Manesar is the company's fourth car assembly plant and started with an initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year

by October 2008.

Diesel Engine Plant- Suzuki Powertrain India Limited Suzuki Powertrain India Limited the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to produce world class diesel engine and transmissions for cars.

The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL.

This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010.

Road Safety And Maruti Suzuki Maruti Suzuki has already trained around 450,000 persons in safe driving in the last few years.

Through the National Road Safety Mission, the company plans to touch a total of million persons in the next few years.

15

Maruti Suzuki contributes towards road safety through its IDTR and MDS initiatives.

National Road Safety  Taking forward its commitment to Road Safety, Maruti Suzuki has adopted a National Road Safety Mission.  Under the mission Maruti Suzuki will Train 500,000 people in safe driving in the next 3 years across India.  While utilizing the existing 2 Institutes of Driving Training and Research (IDTR) in Delhi and the 50 Maruti Driving Schools (MDS) across the country the company will enter into partnerships with state governments for more IDTRs and with its dealers for more MDS.  Of the 500,000 people to be trained, at least 100,000 will be people from  Underprivileged section of society, who are keen to take driving as a profession.  In addition, Maruti Suzuki will continue to support to government and industry in their efforts for road safety.

Maruti Exports Maruti Suzuki exports entry-level models across the globe to over 100 countries and the focus has been to identify new markets. Some important markets include Latin America, Africa and South East Asia.

Interestingly with a brand new offering A-star, Maruti Suzuki is ready to take on European markets.Maruti Suzuki sold 53,024 units during 2007-08. This is the highest ever export volume in a year for the company, and marked a growth of 35 per cent over the previous year.

Maruti Suzuki has exported over 552,000 units cumulatively with about 280,000 units to Europe and Israel Big ticket to Europe .The year 2009 holds the big ticket to Europe.

16

The export effort will be led by Suzuki's fourth World Strategic Model, A-star, which is being manufactured exclusively in Maruti Suzuki.

Maruti Suzuki has been exporting cars for more than a decade, and customers in India draw reassurance from the fact that cars manufactured by Maruti Suzuki have a place in the most demanding markets. Quote UnQuote, S. Nakanishi, MD & CEO, MSIL The first export shipment of Maruti Suzuki's World Strategic Model A-star set out for Europe in early January from the newly built Mundra port. Branded as Suzuki Alto in Europe, this marks Suzuki's reentry into the European small-car market. Maruti Suzuki had unveiled the Suzuki World Strategic Model A-star in mid-November 2008.

The car has been tastefully designed keeping in mind the discerning European and Indian customers. The compact car with a brand new design is also one of the finest in terms of environment friendliness. Maruti Suzuki is looking forward to increase its export volumes manifold and enhance its presence in Europe through the A-star. To meet the infrastructure demand Maruti Suzuki has forged partnerships with the Adani group to set up a mega car terminal at Mundra.

Dedicated car terminal facility The mega car terminal facility being developed at Mundra is a part of the long term agreement signed between Maruti Suzuki and MPSEZL last year to develop a dedicated car handling facility. The mega car terminal, being built with an initial investment of Rs 100 crore (INR 1 billion) will conform to international standards. The facility is expected to bring global efficiencies to the auto logistics industry and will help bring India on the global automotive logistics map.The car terminal is expected to be fully operational by March 2009. The facility would also house a state-of-the-art 'Wash Inspection and Waxing Centre', a car stockyard and a dedicated

'buffer

area'

for

cars

to

be

parked

before

loading

onto

the

ship.

"Maruti Suzuki has ambitious plans for exports. Maruti Suzuki has the technology, skills and manufacturing capabilities to build global quality cars for international markets. However, to match our export ambitions, we needed infrastructure support like a dedicated car terminal. With this initiative and with partners like MPSEZL and NYK, we have confidence that our exports volumes would grow manifold. It is indeed a big leap in automotive logistics for India." Quote UnQuote, S. Nakanishi, MD & CEO, MSIL at the inaugural shipment.

17

Maruti Suzuki & Motor Sports Be it a motorsport enthusiast, an amateur or a professional, Maruti Suzuki offers the thrill and joy of motorsport to all of them. The Maruti Suzuki motorsport calendar is packed with exciting motoring events. For families, there are events like Women's Fun Drive and Treasure Hunt throughout the year, across cities. The Maruti Suzuki Autocross brings action for amateurs and professionals, together. But what makes the Maruti Suzuki motorsport calendar an attraction in India (and internationally too) are Maruti-Suzuki Raid-de-Himalaya, Maruti Suzuki Rally Desert Storm and Maruti Suzuki Monsoon Car Rally of Kerala.

Board of Directors Mr. R. C. Bhargava

Chairman

Mr. Amal Ganguli

Director

Mr. Shinzo Nakanishi

Managing Director and CEO

Mr. D. S. Brar

Director

18

Mr. Manvinder Singh Banga

Director

Mr. Keiichi Asai

Director

Mr. Osamu Suzuki

Director

Mr. Kenichi Ayukawa

Director

Mr. Shuji Oishi

Director

Ms. Pallavi Shroff

Director

Mr. Tsuneo Ohashi

Director and Managing Executive Officer (Production)

As a responsible corporate citizen, Maruti Suzuki India Limited ('Maruti' or "the Company") has always believed in following highest standards of Corporate Governance. Being a listed Company, every act of the Company, its Board Members and its employees is the focus of public attention and accordingly, there is a need to reinforce Maruti's commitment towards maintaining highest standards of Corporate Governance. This Code of Business Conduct and Ethics ("Code of Conduct" or "Code") helps ensure compliance with our standards of business conduct & ethics and also with regulatory requirements. All Senior Management Personnel are expected to read and understand this Code of Business Conduct and Ethics, uphold these standards in day-to-day activities and also comply with all applicable standards, policies and procedures of the company.

This policy should be read in conjunction with applicable regulations & existing policies & procedures of the Company. You can also contact the Secretarial & Legal Department if you have any questions or clarifications.

19

Company Products Offers 14 models of cars such as:  Maruti 800 launched – 1983

 Maruti Omni launched -1984

 Maruti Gypsy launched -1985

 Maruti Zen launched -1990

 Maruti Alto launched -2000

 Maruti Wagon-R launched -2002

 Maruti Versa launched -2003

 Maruti Grand Vitara launched -2004

 Maruti Suzuki Swift launched -2005

 Maruti Zen Estilo launched -2006

 Maruti Suzuki SX4 launched -2007

20

 Maruti Swift Dzire launched -2008

 Maruti A-Star launched -2008

 Maruti Suzuki Ritz launched -2009

 In spite of all these models, Baleno failed to meet the customer expectations.

Key success factor (1)The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.

(2)A Buying Experience like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car.

(3)Quality Service across 1036 Cities In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.92% of Maruti Suzuki owners feel that work gets done right the 21

first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

(4)One Stop Shop At Maruti Suzuki, customers will find all car related needs met less than one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs.

(5) The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car.

Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

(6)Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

(7) Technological Advantage It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range.

This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.

22

CHAPTER -4

23

REVIEW OF LITERATURE

C.R.M Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to support these processes; information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing.

While the term CRM generally refers to a software-based approach to handling customer relationships, most CRM software vendors stress that a successful CRM effort requires a holistic approach. CRM initiatives often fail because implementation was limited to software installation, 24

without providing the context, support and understanding for employees to learn, and take full advantage of the information systems. CRM tools should be implemented "only after a welldevised strategy and operational plan are put in place". CRM can be implemented without major investments in software, but software is often necessary to explore the full benefits of a CRM strategy. Other problems occur when failing to think of sales as the output of a process that itself needs to be studied and taken into account when planning automation. From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a number of employees in different roles and departments. CRM is a combination of policies, processes, and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology in attracting new and profitable customers, while forming tighter bonds with existing ones.

CRM includes many aspects which relate directly to one another: •

Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc.

•

Back office operations — Operations that ultimately affect the activities of the front office

(e.g.,

billing,

maintenance,

planning,

marketing,

advertising,

finance,

manufacturing, etc.)

•

Business relationships — Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups, trade associations). This external network supports front and back office activities.

•

Analysis — Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability).

Proponents of CRM software claim that it doesn't only allow more effective ways of managing customer relationships, but also more customer-centric ways of doing business. Executives often cite the need for the proper tools as a barrier to delivering the experience their customers expect.

25

A 2009 study of over 860 corporate executives revealed only 39% believe that their employees have tools and authority to solve customer problems.

Types/variations of CRM There are several different approaches to CRM, with different software packages focusing on different aspects. In general, Customer Service, Campaign Management and Sales Force Automation (SFA) form the core of the system (with SFA being the most popular).

Operational CRM Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary. The contact history provides staff members with immediate access to important information on the customer (products owned, prior support calls etc.), eliminating the need to individually obtain this information directly from the customer. Reaching to the customer at right time at right place is preferable. Operational CRM processes customer data for a variety of purposes: •

Managing campaigns

•

Enterprise Marketing Automation

•

Sales Force Automation

•

Sales Management System

Analytical CRM Analytical CRM analyzes customer data for a variety of purposes: •

Designing and executing targeted marketing campaigns

•

Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling, addon-selling

26

•

Analyzing customer behavior in order to make decisions relating to products and services (e.g. pricing, product development)

•

Management information system (e.g. financial forecasting and customer profitability analysis)

Analytical CRM generally makes heavy use of data mining and other techniques to produce useful results for decision-making. It is at the analytical stage that the importance of fully integrated CRM software becomes most apparent. Logically speaking, the more information that the analytical software has available for analysis, the better its predictions and recommendations will be.

Sales Intelligence CRM Sales Intelligence CRM is similar to Analytical CRM, but is intended as a more direct sales tool.

Features include alerts sent to sales staff regarding: •

Cross-selling/Up-selling/Switch-selling opportunities

•

Customer drift

•

Sales performance

•

Customer trends

•

Customer margins

•

Customer alignment

Campaign Management Campaign management combines elements of Operational and Analytical CRM. Campaign management functions include: •

Target groups formed from the client base according to selected criteria

•

Sending campaign-related material (e.g. on special offers) to selected recipients using various channels (e.g. e-mail, telephone, SMS, post) 27

•

Tracking, storing, and analyzing campaign statistics, including tracking responses and analyzing trends

Collaborative CRM Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members from different departments can share information collected when interacting with customers. For example, feedback received by customer support agents can provide other staff members with information on the services and features requested by customers. Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of services provided by the company. CRM also plays a role of data distributor within customers, producers and partners. Producers can use CRM information to develop products or find new market. CRM facilitates communication between customers, suppliers and partner by using new information system such email, link and data bank.

Consumer Relationship CRM Consumer Relationship System (CRS) covers aspects of a company's dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company.

Representatives handle in-bound contact from anonymous consumers and customers. Early warnings can be issued regarding product issues (e.g. item recalls) and current consumer sentiment can be tracked (voice of the customer).

Strategy Several CRM software packages are available, and they vary in their approach to CRM. However, as mentioned above, CRM is not just a technology but rather a comprehensive, customer-centric approach to an organization's philosophy of dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology toward the broader organizational requirements.

28

Implementation issues Many CRM project "failures" are also related to data quality and availability. Data cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues, costs, margins, and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases such as sales, manufacturing, supply chain, logistics, finance, service etc.), which requires an integrated, comprehensive system in place with well-defined structures and high data quality. Data from other systems can be transferred to CRM systems using appropriate interfaces.

Because of the company-wide size and scope of many CRM implementations, significant preplanning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data.

Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM project. An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist. A checklist can help ensure any potential problems are identified early in the process.

Privacy and data security System One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.

Maruti Suzuki CRM

29

Maruti Suzuki achieves an overall C.S.I Score of 820 an a 1000 point Scale, overall customer satisfaction with dealer service for the industry improves slightly in 2008-up by 3 points since 2007,with six of the 11 ranked brands demonstrating gains. While ranking below the industry average Tata and Mahindra emerge as the most improved brands, respectively, particularly in the areas of services initiation, quality of services advisors and in services experience.

“Maruti Suzuki has effectively implemented simple producers that improved satisfaction with the value of work performed and perceptions of the fairness and honesty of the dealer, such as greeting service customers quickly upon arrival and fully explaining charges and repairs”, said Mohit Arora senior director at J.P Power Asia Pacific, Singapore “Instituting these low.-effort yet high-impact practices helps to foster trust among customers, which is critical to building loyalty for future service and sales opportunities.”

The study finds that the proportion of vehicles brought in and serviced within the same day has increased to 55 percent this year from 49 percent in 2007.Quick completion of service is a key source of customers delight, particularly for customers who visit the dealer for routine maintenance.

In 2008 India Customer Satisfaction Index(C.S.I) study is based on responses from more than 5,594 owners of nearly 41 different vehicle models. The study was fielded from June to August those customers who serviced their vehicles at authorized services facilities.

S.M.R.-(service marketing report)Services marketing report is the detail of the customers who purchased the car from the showroom. In this report we have the data about the Customer purchasing date and the time of car servicing. Means by this report we remind to customer that it is the time of your car servicing .So we ask some questions for customer satisfaction these are the following questions: Ques.1-are you aware of the maintained schedule of yours cars?

Ques2-as per record you cars service in due on-will you like to make a booking?

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CHAPTER -5

RESEARCH METHODOLOGY

Research Methodology 31

Research methodology is away to systematically solve research problem. In it we study the various step that are generally adopted by researcher in studying his research problem along with logic behind them. It is necessary for a researcher to know not only the research method/techniques but also the methodology. It may be noted, in the context of planning & development that the significance of research lines in its quality and not in quantity. Researcher should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why?

Meaning of Research “Research is common parlance refers to a search for knowledge. In fact research is an act of scientific investigation.�

The project was divided in to the following steps.

To decide objective of the study To decide research design & application

To decide source of data collection

To decide from of data collection

To organize & collect data

32

To process & analyze report To prepare the research report

1.To decide objective of the Study:This step is also research problem. problem definition is the most critical part of the research process. research problem definition involves specifying the information needed by management.

The main objective of the study are:  To study the awareness of Maruti Suzuki & AGR automobiles in Varanasi.  To find out the level of customer satisfaction with the offers, discount and services offered by Maruti Suzuki & AGR automobiles.

2. To decide research design & application:Research design involves defining the research problem, determining how to collect the data and from whom, establishing the way the data will be analyzed estimating costs and the preparation of the research approach. For this study, descriptive research was selected.

3. To decide Source of data there are two source of data  Primary Data  Secondary Data Primary data:Primary data is the original data collected specifically for the problem.

Reason for selecting primary data:-

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In terms of primary data a questionnaire has been used to interview desire sample units that give accurate and up to data information as well better to research problem.

Research approaches: - Primary data can be collected in five main ways: through Observation, focus groups, surveys, behavioral data, and experiments.

Research instruments:- Marketing researchers have a choice of three main research Instruments in collecting primary data:  Questionnaires: - A questionnaire consists of questions presented to respondents for their answers. Because of its flexibility, the questionnaire is by far the most common Instrument used to collect primary data. Questions can be open-ended or closed-Ended.  Qualitative measures: - Some marketers prefer more qualitative methods for gauging consumer opinion because consumer actions do not always match their answers to survey questions. Qualitative research techniques are relatively unstructured measurement approaches that permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may other-Wise be difficult to uncover.  Mechanical devices: -Mechanical devices are occasionally used in marketing research .Mechanical devices like galvanometers measure the respondent’s interest or emotions aroused by exposure to a specific ad or picture.

Secondary data:Data potentially useful in solving a current problem but that were collected for a different purpose.

Reason for selecting secondary data:Secondary data can be gathered quickly and inexpensively, compared to primary data, it is clear useful to study analyzing the recent development in the telecom industry.

Contact methods:- Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contact:

34

 Mail questionnaire: - The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions.  Telephone interview: - Telephone interviewing is the best method for gathering information quickly; the interviewer is also able to clarify questions if respondents do not understand them. The response rate is typically higher than in the case of mailed questionnaires.  Personal interview: - Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment, and often a small payment or incentive is offered. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.  Online interviews: - There is increased use of online methods. There are so many ways to use the Net to do research. In this method, researcher can include a questionnaire on its Web site and offer a people to answer the questionnaire.

4.To decide from of data collection:For this project survey method was selected which was carried through person interview.

Because information from different customers was required.

5. To organize & collect data:Once the researcher has formulated and development a research design including questionnaire second thing he has to decide whether he has to collect the information. From all the targeted customers. There can be two types of survey are possible.  Sample Survey  Census Survey “For this project sample Survey war chosen” 35

Characteristics of the sample survey are: It is cheaper than census survey  It requires less time  It is economical  More detail information can be collected Deciding the sample plan requires following decisions Sample unit “Who is to be surveyed” Sample Sample is the true representation of the population by studying of the sample we can predict the behavior of the population.

Sample Size: 250 (in this case) Method of Sampling:In this project, the survey was done within the market that means probabilistic convenience Sampling was carried out.

6. To process & analyze data:After the data was collected it was tabulated, analyzed and interpreted to the conclusion reach.

Techniques Applied  Bar Chart:- A chart in which the length of the bar represents the amount of the item associated with the bar.  Pie Chart:- A circle divided in to sections, such that each section represent the percentage of the total area of a circle associates with one variable.

36

Types of Research Along with this there may be 3 type of research methodology these are :They are –  Exploratory Research  Descriptive Research  Casual Research “Our research is based on the exploratory research.”

Exploratory Research “The objective of this research is to gather preliminary information that will help us to define the problem and to suggest any hypothesis.”

Which means first we have to define the problem and research objective? Then we have to develop the research plan for collecting information. Now after collection data we have to interpret those data for any suggestion,

37

CHAPTER-6

38

DATA ANALYSIS & INTERPRETATION

Customer’s Satisfaction for AGR Automobiles TABLE No.6.1

Levels of Satisfaction

Value

Percentage responded

Satisfied

135

54%

Dissatisfied

55

22%

No Comments

55

22%

Highly Satisfied

5

2% Figure No.6.1

39

Data \Analysis From the analysis we can conclude that to the existing customer of the dealers, there are satisfied customer 54%, dissatisfied are 22% from servicing or after sales servicing,22% is the percentage of those customers who not replied, There is also 2 % customer who was highly satisfied from the company and also from dealers.

Data Interpretation In the showroom there is range of the customers, huge no. of customers are satisfied from the service of the company and dealer, there is also no. of customer who are dissatisfied from the services but rage of satisfied and highly satisfied customer is more.

Which version of the models are mostly demanded by the customer’s TABLES No. 6.2

Version

Value

Percentage of Demand

PETROL

90

36%

DISEL

112.5

45%

LPG

47.5

19%

Figure No.6.2 40

Data Analysis From the above table we can conclude that according to the dealers 45 % of the customer asks for the diesel variants while 36 support the petrol variants and 19 % wants the LPG variants of different models.

Data Interpretation The demand for the diesel variant is more for most of the models but the firm has limited number of the models having diesel variants. The customers are also looking for the gas models which will suitable for LPG and CNG. So the firm should think for the diesel and gas variants.

Features of Maruti Suzuki TABLE No.6.3

Features

Value

Percentage of loyalty

Price

95

38%

Quality

55

22%

Service

87.5

35%

41

Others

12.5

5% Figure No.6.3

Data Analysis The above analysis shows that 38 % of customers are buying the Maruti Suzuki product for its price, 22 % buy them due to their quality. 35% think that after sale service is provided by Maruti.

And 5% people buy them due to other reasons like style, look etc.

Data Interpretation We can conclude that most of the people think that Maruti Suzuki pricing are economical so they are loyal to his brand. While other people give emphasis to the after sale service. Quality and other features are also a trait for the buyers.

What is the Performance of the Car TABLE No.6.4

Customer Opinion

Value

Percentage of Responded

Excellent

62.5

25%

Very good

125

50%

42

Good

50

20%

Poor

12.5

5%

Figure No.6.4

Data Analysis The above analysis shows that there is 25% customers are highly satisfied from the performance of car, there is 50% response is very good and 20% is response for good also there is 5% response of poor performance of car.

Data Interpretation We can conclude that there is huge no of customer’s are satisfied with the performance of the car, data is concerned with those customers who are the existing customers of Maruti Suzuki and data is also concerned with new customers.

After servicing vehicle delivered at the promised time?

TABLE No.6.5

Customers opinion

Value

Percentage of Responded

Yes

200

80%

43

NO

50

20%

Figure No.6.5

Data Analysis There is 80% customers response is that they get their vehicle at promisied time and 20% customers who responded that they never get their vehicle at promisied time.

Data Interpretation Servicing comes in after sales services,dealer provides this services to customers so there is necessary for dealer to provide the vehicle at the promised time because it makes the relationship better with the customers.

What rank you will give to Maruti company as for the satisfaction level?

TABLE No.6.6

Rank for the satisfaction level

Value

Percentage of Responded

44

1

82

33%

2

67.5

27%

3

50

20%

4

32.5

13%

5

17.5

7%

Figure No.6.6

Data Analysis The table is shows the rank for the customer satisfaction level 1 is highest and 5 is the lowest,there is 33% response for the rank 1,27% for the rank 2,20%for the rank 3,13% for the rank 4,7% for the rank 5.

Data Interpretation By the analysis this is found that there is huge customers of Mruti Suzuki those are satisfied from the company.

What type of repot shared between Customer and dealer?

TABLE No.6.7

Customer Opinion

Value 45

Percentage of Responded

Excellent

62.5

25%

Very good

125

50%

Good

50

20%

Poor

12.5

5%

Figure No.6.7

Data Analysis The table shows that there is 25% opinion for the excellent and 50% response for good, 20% for good and also there is 5% opinion for poor relationship with the dealer.

Data Interpretation There should be good relation between customer and dealer because it helps to increase the sales of company and also helpful for making the customer relationship management.

About Company after Sales Service TABLE No.6.8

46

Customer Opinion

Value

Percentage of Responded

Excellent

62.5

25%

Very Good

125

50%

Good

37.5

15%

Poor

25

10%

Figure No.6.8

Data Analysis The table shows that there is 25% customer responded for the excellent services of company and 50% for the very good,15% for the good and there is 10% responded for the poor services of the company.

Data Interpretation There is important to know the after sales services of the company it shows the customers satisfaction and also shows the customer relationship management.

47

CHAPTER-7

FINDINGS

Findings  There is 54% of satisfied customer’s of Maruti Suzuki.

48

 The demand for the diesel variant is more for most of the models but the firm has limited number of the models having diesel variants. The customers are also looking for the gas models which will be suitable for LPG and CNG. So the firm should think for the diesel and gas variants.  Most of people think Maruti Suzuki pricing are economical so they are loyal to his brand.

While other people give emphasis to the after sale service. Quality and other features are also a trait for the buyers.  There is large no of customer’s are satisfied with the performance of the car, data is concerned with those customers who are the existing customers of Maruti Suzuki and data is also concerned with new customers.  Servicing comes in after sales services,dealer provides this services to customers so there is necessary for dealer to provide the vehicle at the promised time because it makes the relationship better with the customers.  There should be good relation between customer and dealer because it helps to increase the sales of company and also helpful for making the customer relationship management.  There is important to know the after sales services of the company it shows the customers satisfaction and also shows the customer relationship management.

49

CHAPTER-8

LIMITATION

Limitation

50

 It was assumed that the information given by the respondents is authentic and best of their knowledge.  Some of the view given was completely views by customers as they were in a hurry and were not considered in the data analysis.  The result of the study is applicable to the survey area only.  Time is also one of the important limitations.  Dull process and unwilling respondent also affect the result of the study.

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CHAPTER-9

Conclusion & Recommendation

52

Conclusion of the Study The research work was successfully identifying by the studying the relationship management of Maruti Suzuki in AGR Automobiles in Varanasi. The conclusion can be drawn from this study may be: Maruti Suzuki is India’s one of the leading automobile manufactures and also the leader of the market both in terms of volume and revenue generated.  Taking the sale trend in to account MSL sold a record number of vehicle 7, 14,842 in 2007-08 including 53,024 units of export. In 2007-08 it record a turnover of INR 145,922 million which rose to 178,603 million in 2007-08 showing a growth of 20%.  Hence Maruti Suzuki Limited has captured over all share of 46% in the Indian car market.

Recommendation To conclude, it can be said that AGR Automobiles has created its image in a very short period in Varanasi. AGR is the Best dealer of Maruti Suzuki. It is attracting the customers with its good services. Most of the customer satisfied by buying the Maruti car from AGR automobiles. This satisfaction can be concluded by the response of customer in the questionnaires. Day by day Maruti Suzuki is improving his reputation to other Automobile Company. The comparison chart and survey report in this training report can recognize this.

There should be more staff having experience of automobile sector.  There should be more efficient planning for satisfying customer needs.  Attractive offers should be given time to time, to increase customer’s interests  There should be easy process of car servicing.

53

Appendix

54

Questionnaires Q.No.1:- Do you have any Maruti Suzuki four wheelers?

Ans- (a) Yes

(b) No

Q.No.2:-Which Maruti Model do you have?

Ans- (a) Maruti 800

(b) Maruti Swift

(c) Maruti Wagon-R

(d) Maruti Alto

Q.No.3:- Which Version do you have?

Ans- a) Petrol

b) diesel

c) LPG or GAS

Q.No.4:-If you have Maruti Suzuki what features do you like most?

Ans- (a) Price

(b) Quality

(c) Services

(d) other

Q.No.5:-What is the performance of your Car? Ans : a)Excellent

b) Very Good

c) Good

d) poor

Q.No.6:- After Servicing your vehicles delivered at the promised time?

Ans: a) Yes

b) No

55

e) Others

Q.No.7:- What rank you will give to your company as for the satisfaction level 1 is the highest 5 is the lowest rank of sati-factionary level?

Ans-

(a) 1

(b) 2

(c) 3

(d) 4

(e) 5

Q.No.8:- Which type of repot shared between you and your dealer?

Ans- (a) Excellent

(b) Very Good

(c) Good

(d) Poor

Q.No.9:- What you will say about after sales services of company?

Ans-(a) Excellent

(b) Very Good

(c) Good

(d) Poor

Q.No.10- If any suggestion for automobile company?

Ans…………………………………………………………………………………………………… …………………………………………………………………………………………………… …… ……………………………………………….

Name:Occupation:Contact No:Address:-

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BIBLIOGRAPHY

57

Name Of Book

Name Of Author

Edition & year

Marketing Management

Paramhans Foundation

Research Methodology

C.R.Kothari

Second Edition, 1993

Marketing Management

Philip Kotler

Tenth Edition, 1999

Fundamentals of Statistics

D.N.Elhance

Present Edition, 1992

REFRENCES

1. Website of www. marutisuzuki.com

2. Website of www.google.com

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First Edition, 1992