After Sale Services in Automobile Industry (Group-5)

8/4/2019 After Sale Services in Automobile Industry (Group-5)

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AMITY BUSINESS SCHOOL

AMITY UNIVERSITY

NOIDA, UTTAR PRADESH

PROJECT REPORT

Marketing Management

Under the guidance of:Mrs. Vandana Gupta

(Faculty)

Submitted by:

Anjali (30)

Aprajita (39)

Mehak (50)

Sarah (49)

Simranjyot (43)


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Objectives of the study

The objective of our research is to find what services dealers provide to

their customers and what customers expect from their dealers.

To know the inter-personal relation among the dealers and the customers.

The satisfaction level being achieved by the feedbacks.

To observe what is the mind set of consumers when it comes to after sale

services.

To explore about the scenario of the after sale services in a modern

perspective, as to the needs and wants of the customers when it comes to

after sales for their automobile.

Comparing the services provided by dealer and services required by the

customers, to find the customer satisfaction level.


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Introduction

AUTOMOBILE INDUSTRY

The Indian automobile industry is the tenth largest in the world with an

annual production of approximately 2 million units. Indian auto industry,promises to become the major automotive industry in the upcoming years and

the industry experts are hopeful that it will touch 10 million units mark.

Indian automobile industry is involved in design, development, manufacture,

marketing, and sale of motor vehicles. There are a number of global automotive

giants that are upbeat about the expansion plans and collaboration with

domestic companies to produce automobiles in India.

The major car manufacturers in India are Maruti Udyog, Hyundai Motors India

Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., ToyotaKirloskar Motor Ltd., Hindustan Motors etc.

In recent years automobile industry in India has grown by leaps and bounds.

This phenomenal growth rate owes to two factors mainly, which are:

1. Better standard of living of the Indian middle class and

2. A subsequent rise in their disposable income which in turn increases the

purchasing power adding to the growth of the automobile industry as a

whole and the automobile companies in particular.

According to a market survey results the sale of passenger cars have increased

by three folds than what it used to be five years down the line. Apparently there

are 1 million passenger cars already on the Indian roads and the figure only

promises to increase as the days go by. Be it small cars, medium cars or luxury

cars all have their target customers and all do well in the market so much so

that global giants from USA and Japan are entering the Indian automobile

sector and working in collaboration with the Indian automobile majors.


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Tata Motors: Tata Motors in one of the major players of the automobile

manufacturing companies in India. It has three different manufacturing units in

India they are, Jamshedpur in the East, Pune in the West and Lucknow in the

North and all three manufacturing units specialize in the manufacturing of

different automobile like Jamshedpur unit produces trucks, engines and axles,the Pune unit caters to the production of Medium Heavy Commercial vehicles

and Heavy Commercial Vehicles, utility vehicles and passenger cars and the

Lucknow unit produces MCVs, Tata Sumos along with a number of spare parts.

Some of the well known cars manufactured by Tata Motors are: Tata Indica,

Tata Indigo, Tata Indigo Marina, Tata Sumo and Tata safari.

Hindustan Motors Limited: Hindustan Motors Limited is one of India's

pioneering companies in manufacturing passenger cars Ambassador, MultiUtility Vehicles (Trekker, Porter, and Pushpak) and the mid segment premium

car Mitsubishi lancer. It is because of Hindustan Motors that we see the

Mitsubishi Pajero a great sports car on the Indian roads.

Maruti Udyog Limited: By far the most trusted and best known car

manufacturer in India. Maruti Udyog manufactures a host of SUVs, Sedans and

passenger cars. Some of Maruti's most popular cars are: Maruti 800, Alto,

Omni, Gypsy, Zen, Wagon R, Versa, Esteem, Baleno and Swift.

Hyundai: Established in year 1996, Hyundai Motor India Ltd. is a sub division

of the giant South Korean multinational, the Hyundai Motor Company. It is

Korea's top automobile manufacturer, capturing the Indian market and giving a

strong competition to its rivals in the same segment.

Mahindra and Mahindra: M&M was established in 1945 as Mahindra &

Mohammed. M&M started its operation as a manufacturer of general-purpose

utility vehicles. It assembled CKD jeeps in 1949. Over the passing years, the

company expanded its business and started manufacturing light commercial

vehicles (LCVs) and agricultural tractors.

Below is a table representing the net profits of the above automobile companies

in the year 2009.

Company Profit

Tata Motors Rs 400.14 crore

Hindustan Motors Limited Rs 27.42 crore


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Maruti Udyog Limited Rs 400 crore

Quick Facts:

The passenger car and motorcycle segment in the Indian auto industry is

growing by 8-9 percent.

The first automobile in India was rolled in 1897 in Bombay.

India is a potential emerging auto market.

Unlike the USA, the Indian passenger vehicle market is dominated bycars (79%).

In Asia, India is the fourth largest car market.

Used car Market

The new concept in the automobile industry is that of used cars. The massive

demand of used cars indicates that cars are becoming increasingly popular.

Those who can't afford the luxury cars and their high prices are opting for used

cars. In today's time, customers are conscious and diligently investing on cardealership. Car buyers are investing heavily a lot of time for both to sell a car

and buy car. There's also a number of car websites that have offering detailed

information on new car prices, used cars, car reviews, Chevrolet cars, jaguar

cars and luxury cars.

Market Share

At present major Indian, European, Korean, Japanese automobile companies are

holding significant market shares. In commercial vehicle, Tata Motors

dominates over 60% of the Indian commercial vehicle market. Tata Motors isthe largest medium and heavy commercial vehicle manufacturer.

Car manufacturers in India dominate the passenger vehicle market by 79%.

Maruti Suzuki is the largest car producer in India and has 52% share in

passenger cars and is a complete monopoly in multipurpose vehicles. In utility

vehicles Mahindra holds 42% share. Hyundai and Tata Motors is the second and

third car producer in India.


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After sale services

After sale services provides a customer support following the purchase of a

product or service. In some cases, after-sales service can be almost as importantas the initial purchase. The manufacturer, retailer, or service provider

determines what is included in any warranty (or guarantee) package. This will

include the duration of the warranty. Traditionally one year from the date of

purchase, but increasingly two or more years, maintenance and/or replacement

policy, items included/excluded, labor costs, and speed of response. In the case

of a service provider, after-sales service might include additional training or

helpdesk availability. Of equal importance is the customer's perception of the

degree of willingness with which a supplier deals with a question or complaint,

speed of response, and action taken.

A company's after-sales service is all the help and information that it provides

to customers after they have bought a particular product.

The after-sales activities are nowadays acknowledged as a relevant source of

revenue, profit and competitive advantage in most manufacturing industries.

Top and middle management, therefore, should focus on the definition of a

structured business performance measurement system for the after-sales

business.

After sale services in the Automobile industry

In the automotive aftermarket industry, market development has become more

than merely the offer of a core product portfolio. With the aim of genuine

differentiation and increased customer loyalty, the so-called value-added

services have been brought into the market as separate/independent services or

as product-supporting services by the automotive industry. However, owing to


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the increasing price erosion and budget pressure in practice, it has become

essential for companies to ensure the effectiveness and efficiency of the services

offered. The groundwork of effective and efficient service is a market- and

customer-oriented service portfolio. This in turn requires a service-controlling

system based on well-founded market research within the automotive sector.To this end, market studies can provide significant insights and support a

performance-oriented management of service actions.

In any industry after sales is considered as liability. More particularly in

automobile industry is viewed very sensitively because of expensive

product compared to any other to a common man. The support, be

it manufacturer or its dealer extended to provide reliable and trust

worthy after sales is considerably weak when compared to Sales

Department. This results in customer's perception to approach Sales

department to get what is entitled to his/her vehicle rightfully, during

warranty or either period or mileage is still live or just expired

warranty.

Thus after sale services plays an important role in acquiring values from

customer and it is one of the very important step after sale of product.


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Research Methodology

Research Design:

Design is a structure of any scientific work. It gives direction and

systematise the research. Methods you choose affect your results. There

are different designs used in research e.g. case study, descriptive research,

field experiment, survey etc.

The research method we used isSurvey Method. Survey methods are

used to collect quantitative information about items in the population.

We selected survey method because it is an efficient way of collectinginformation from large number of respondents. Further survey method

gives valid, reliable and statistical significant information. It is easy to

administer, error free and cheaper.

Sample Size:

We conducted our research with taking two aspects:

Customers

Dealers

Under Customer aspect we have taken sample of 50 customers and under

dealer we have taken a sample size of 20 dealers who belongs to different

areas and different brands.

Sampling Technique:


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Convenience sampling

It is a technique for statistical sampling from real world population, used

in observational studies and survey. In our research we used convenience

sampling, it is a type of no probability sampling which involves the samplebeing drawn from that part of population which is close to hand that is, a

sample population selected because it is readily available and convenient.

Data Collection

In our research primary data is collected by the method of survey (usingquestionnaire as a tool) from different dealers located in different cities.

We have collected data from 20 dealers which belong to different brands

of the cars.

For consumers we have collected data from 50 sample size located in

different cities, having different brands of cars (using questionnaire)

Data is collected by personal interviews both from customers by using

convenience sampling. And in some of the cases used telephonic

interviews from dealers.

For literature survey or secondary data we have gone through several

books, projects, journals and articles.


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DATA Analysis

( Questionnaires from Dealers)

1. D o you provide after sale services to your customers?


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Yes

No

(All the dealers gave a positive response that, yes they provide customers withafter sales services.)

2. What kinds of services you provide to your customers?

Insurance

Warranty

Pick and drop service

Others

(About 20% of the dealers provide all the services and 95% of the dealers

provide warranty and 45% provide pick and drop services and 50% provide

other services also.)

3. Do you take remarks from your customers to know their

satisfaction level?

Yes

No

(All the dealers positively replied that yes, they take remarks from their

customers to know their satisfaction level.)

4. How are the after sales services being conducted?

On some timely basis

According to wish of customers


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(About 75% dealers are of the view that it is done on a timely basis and the

remaining 25% perform it according to wish of the customers.)

5. Do you remind the customers about their first service or subsequent

services being due?

Yes

No

(About 95% dealers remind their customers about their first service or the

subsequent services due and remaining 5% do not remind their customers.)

6. What do you provide to your customers for time pass while their cars

getting serviced?

Newspaper/ magazines


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Television

Music

Others

(About 80% of the dealers provide the customers with newspaper/magazines.

55% provides the customer with T.V. 10% provide the customers with music

and others.)

7. Do you provide your customers with pick and drop service of cars?

Yes

No

(About 60% of the dealers provide their customers with pick and drop service

and remaining 40% do not provide pick and drop services to their customer.)

8. Do you allow your customers to see their cars getting serviced?

Yes

No


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(About 90% of the dealers dont let their customers see their cars getting

serviced and the remaining 10% let the customers see their cars getting

serviced.)

9.Do you have complaint box at your service station?

Yes

No

(About 65% dealers have a complaint box at their service station and remaining35% do not have a complaint box at their service station.)


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10. Do you respond your customer`s complaints immediately?

Yes

No

Immediate response to

customer s complain

(About 90% of the dealers respond to their customers complaint immediately

and the remaining 10% take some time to respond to their customer

complaints.)

11.How much time do you take to approach to your customers complaint?

1 week

2 week

1 month


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(About 80% of the dealers approach to their customers complaints in a time

span of one week and remaining 20% reach to their customers complaints in a

time span of two weeks.)

12.Do you provide any refreshment to your customers while servicing their

cars?

Yes

No

(About 75% of the dealers do not provide any kind of refreshment to the

customers while servicing their cars and the remaining 25% providerefreshments to their customers.)


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13.Do you consider the feedbacks provided by your customers?

Yes

No

(All the dealers are of the response that yes, they consider feedbacks provided

by their customers.)

14.Do you have strong inter-personal relationship with your customers?

Yes

No

(About 90% of the dealers enjoy strong inter-personal relationship with their

customers and the remaining 10% do not share strong inter-personal

relationship with their customers.) AMITY BUSINESS SCHOOLQUESTIONNAIRE

1. When did you purchase the car?

o Week Ago

o 6 months ago

o 1 year ago

o More than 1 year


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(About 10% of the customers have purchased their car 6 months ago.

28% bought it a year ago and 62% got it before a time span of more than

one year.)

2. After how much time do you get your car serviced?

o One month

o Three months

o Six months

o One year

o More than one year

(About 2% of the people get their car serviced after every 1 month. 46% of the

people take their car for service after every 3 months. 46% take it for service

after every 6 months. 4% take the cars after one year and around remaining 2%

take their car for service after a time span of more than one year.)

3. Where do you get your car serviced?

o From the car dealer

o Local Automobile / Service centre


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(About 68% of the consumers get their cars serviced from the dealers and

remaining 32% get it done from local dealers.)

4. What are the services that you expect, should be included in after

sale services?

o Insurance

o Warranty

o Pick and drop services

(About 23.2% of the consumers expect to have insurance, 35.6% customers

expect warranty and 41% of the consumers expect pick and drop services to be

provided as a part of after sale services.)

5. What are the services that you are getting presently?

o Insurance

o Warranty

o Pick and drop service


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(About 45% of the customers are getting insurance as a part of after sale

services. 25% are getting warranty and remaining 30% are getting pick and drop

services as a part of after sale services.

6. Did the dealer remind you about your first service due or the two

subsequent services?

o Yes

o No

(About 86% customers are being informed about their first our subsequent

services due whereas remaining 14% are not informed.)

7. Do your dealer provides you with pick and drop service?

o Yes

o No


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(About 60% of the dealers provide their customers with pick and drop service.

And remaining 40% do not provide the customers with pick and drop service)

8. If no, do you leave your car for service and get it afterwards?

o Yes

o No

leaving car for service

yes

no

(About 85% of the customers leave their cars for service and get it afterwards.

And 15% of the customers wait at the service station when their cars get

serviced.)

9. Do you get back the car, the same day after service?

o Yes


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o No

(About 58% of the customers say that they get their cars back the same day after

getting serviced and remaining 42% do not get their cars back, the same day.)

10.If yes, how much time do you have to spend at the service station?

o 1 hour

o 2 hours

o More than 2 hours

(About 9.3% say that they wait in the service station for around 1 hour and

37.5% wait for around 2 hours and remaining 53.1% wait for their car for more

than 2 hours.)

11.If no, how do you spend your time while your car is getting serviced?

o Newspaper/ Magazines

o Television

o Music

o Interacting with dealer

o Others


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(About 80% of the customers say that they are being provided with

newspapers/magazines and even television. 10% the customers are provided

with music. And the remaining 10% either interact with the dealer or indulge in

other activities.)

12. Does your dealer provide you with any kind of refreshment?

o Yes

o No

(About 90% of the dealers do not provide their customers with any

refreshment. And other 10% dealers do provide refreshment to the

customers, like coffee and tea.)

13. Can you see your car getting serviced?o Yes

o No

(About 80% of the customers say that they cannot see their car getting serviced.

And remaining 20% of the customers say that they can see their car getting

serviced.)

14. On what basis do you rate the services of your dealer?o Ambience

o Convenience

o Services

o Others


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(About 31% customers rate the services of their dealers on the basis of its

ambience. 22% customers rate it on the basis of their convenience.

And remaining 47%, on the basis of their services.

15.Does your dealer take prompt action to your complaints?

o Yes

o No

(About 88% of the customers say that their dealers take prompt action of their

response. And 12% say that their dealers do not take a prompt response.)

16. Does your dealer ask for your response, after your car gets serviced?

o Yes

o No


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(About 88% of dealers concern about the response from customers after the car

gets serviced and rest 12% doesnt concern about the feedback from their

customers)

17. How well do you feel the dealer services represent the current brand you

are using?

o Extremely well

o Very well

o Average

o Not well

(26 % customer says that their dealer provides extremely well services, 58%

says services provided by dealer are very well, 14% says services provided are

average and 2% says services provided by dealer are not well.)

18. Are you satisfied with the services you are getting from your dealer?

o Fully satisfied

o Average

o Not satisfied


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(66% of customers says they are fully satisfied, 32% gets average satisfaction

and 2% are not at all satisfied by the services provided by their dealers.)

19.Will you suggest your friends and relatives to get their car from the same

dealer you are dealing with?

o Yes

o No

(94% of customer recommend and 6% customers doesnt

recommend the same dealer)


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CONCLUSION

(From dealers perspective)

After a broad analysis on after sale services, we conclude that

Maximum number of dealers provides warranty to their customers and

then on charts, comes pick and drop services. Dealers prefer to provide

warranty to their customers; it is because if they provide warranty for 1

year to their customers, customers will be bounded to that service station

for at least one year.

All the dealers take remarks from their customer to know their

satisfaction level. As remarks from the customer and knowing their

response has become a very important ingredient to improve their

satisfaction levels.

Mainly after sale services are conducted on timely basis rather than wish

of customer. As servicing of cars is done after a car has run by specific

kilometers and as the dealers are not aware of the usage of the cars hence


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an optimum time is decided for the first or the two subsequent services

due.

By this dealer create customer value. With this they show they care

about the cars of customer and on the other way they are attractingcustomers to their service station and they dont want to loose their

existing customers.

Maximum numbers of dealers provide newspaper or magazine to their

customer for time pass while their cars getting serviced. Next on chart

followed by T.V. and music. As it is very difficult to entertain all the

customers with particular music or TV serial where as newspaper and

magazine are most efficient way to entertain almost all groups of the

customers.

Slightly more than half of the dealers provide pick and drop services to

their customers. Today customers want convenience, getting the car from

home and dropping it after its service provides ease and saves their time.

Most of the dealers do not allow the customers to see their cars getting

serviced. As it has been a policy followed by many service providers.

Customers, if are interested to wait are made to wait in the waiting rooms

and at some places the dealers even provide their customers with aviewing glass to see what all is happening inside the service area.

A good number of dealers have complaint box at their service station to

know what problems, their customers are facing and to improve their

efficiency at the service station.

Most of the dealers take one week time to approach the customers

complaint. They Study the problems in detail and come up with the

solutions.

Maximum number of dealers does not provide refreshment to customers.

All the dealers respond to the feedback provided by their customers as

early as possible through this they show that they value the opinion of

customers.

Most of them have strong interpersonal relationships with customers.

Building strong inter-personal relationships is the main aim of the every


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marketer and the service provider, to retain the existing lot of customers

as well as to create new customers.

Conclusion

(From customers perspective)

A good number of customers get their car serviced from the car dealer

after a period of 6 months.

Most of the customers expect pick and drop services from the dealer

followed by warranty and insurance while most of them are provided

with insurance followed by warranty and pick and drop services. Pick

and drop provides customer with the better time management and

convenience that is why it is more popularly discussed and demanded.

Large numbers of customers are reminded by the dealers about their first

service and subsequent services being due, as it can help maintain a

better interpersonal relationship with the customer.


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Some of the customers do not leave their cars at the service station for

servicing because they may be fearful for the fact that something might

happen to their car.

Large number of customers get their cars back same day after service as ittake more than 2 hours to get their car serviced

For time pass most of the customers use newspaper and magazines.

Most of the dealers do not let their customers see their car getting

serviced.

According to the customer point of view, services are the major criteria of

rating the services of dealer.

Most of the customers are satisfied by their dealers in taking action for

their complaints.

Almost all the dealers ask for the response of their customers after car

servicing.

Customers are always ready to give a mouth of word to their friends and

relatives about their likes and dislikes about a particular dealer.

Recommendations

After our research we found out that:

After sale services scenario when comes to automobile

industry has grown a wide and is basically catering to the basic needs of the

customers. Services like insurance, warranty, proper servicing, washing andpick and drop are widely used by many of the dealers.


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But then also the need for adding new services and creating a strong

interpersonal relationship requires new introductions to the list of current

services provided. So we are giving a few recommendations to the dealers to

improve upon their position and provide a value based servicing. Most of the customers prefer pick and drop services.

Thus, all the dealers should provide this service to

add the customer value.

They should not delay in the time given for servicing

the car. To match the satisfaction level to customers.

They should give back the car on scheduled time.

Dealers should provide a written report about whatall repair and services done by them.

When a customer comes to the dealer for servicing

all the doubts about servicing should be cleared by

the dealer.

Dealer should try to respond on complaints of

customers and feedback from the customers.


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Bibliography

1) www.google.com

2) International journal of automotive technology and

management-2009, vol.9.

3) Auto.indiamart.com

4) Article on latest automobile industry.

5) International journal of service industry

management,vol.12
http://www.google.com/http://www.google.com/


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Annexure


QUESTIONNAIRE

(From dealers)

10.D o you provide after sale services to your customers?

Yes

No

2. What kinds of services you provide to your customers?

Insurance

Warranty

Pick and drop service

Others

11. Do you take remarks from your customers to know

their satisfaction level?

Yes

No

12. How are the after sales services being conducted?

On some timely basis

According to wish of customers


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13. Do you remind the customers about their first service

or subsequent services being due?

Yes

No

14.What do you provide to your customers for time pass while their cars

getting serviced?

Newspaper/ magazines

Television

Music

Others

15.Do you provide your customers with pick and drop service of cars?

Yes

No

16.Do you allow your customers to see their cars getting serviced?

Yes

No

17.Do you have complaint box at your service station?

Yes

No


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10. Do you respond your customer`s complain immediately?

Yes

No

15.How much time do you take to approach to your customers complaint?

1 week

2 week

1 month

More than 1 month

16.Do you provide any refreshment to your customers while servicing their

cars?

Yes

No

17.Do you consider the feedbacks provided by your customers?

Yes

No

18.Do you have strong inter-personal relationship with your customers?

Yes

no


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QUESTIONNAIRE

1. When did you purchase the car?o Week Ago

o 6 months ago

o 1 year ago

o More than 1 year

2. After how much time do you get your car serviced?

o One month

o Three months

o Six months

o One year

o More than one year

3. Where do you get your serviced?

o From the car dealer

o Local Automobile / Service centre

4. What are the services that you expect, should be included in after saleservices?

o Insurance

o Warranty

o Pick and drop services

5. What are the services that you are getting presently?

o Insurance

o Warranty

o Pick and drop service

6. Did the dealer remind you about your first service due or the two

subsequent services?

o Yes

o No


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7. Do your dealer provides you with pick and drop service?

o Yes

o No

8. If no, do you leave your car for service and get it afterwards?

o Yes

o No

9. Do you get back the car, the same day after service?

o Yes

o No

10.If yes, how much time do you have to spend at the service station?

o 1 hour

o 2 hours

o More than 2 hours

11.If no, how do you spend your time while your car is getting serviced?

o Newspaper/ Magazines

o Television

o Musico Interacting with dealer

o Others

12. Does your dealer provide you with any kind of refreshment?

o Yes

o No

13. Can you see your car getting serviced?

o Yes

o No

o

14. On what basis do you rate the services of your dealer?

o Ambience

o Convenience

o Services

o Others

15.Does your dealer take prompt action to your complaints?


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o Yes

o No

16. Does your dealer ask for your response, after your car gets serviced?

o Yeso No

17. How well do you feel the dealer services represent the current brand you

are using?

o Extremely well

o Very well

o Average

o Not well

18. Are you satisfied with the services you are getting from your dealer?

o Fully satisfied

o Average

o Not satisfied

19.Will you suggest your friends and relatives to get their car from the same

dealer you are dealing with?

o Yeso No

Documents

After Sale Services in Automobile Industry (Group-5)