CHAPTER-1

INTRODUCTION TO
THE TOPIC

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2
INTRODUCTION OF THE TOPIC

Customer relationship management (CRM) is an approach to managing a

company's interaction with current and potential customers. It uses data analysis about
customers' history with a company and to improve business relationships with
customers, specifically focusing on customer retention and ultimately driving sales
growth. One important aspect of the CRM approach is the systems of CRM that
compile data from a range of different communication channels, including a
company's website, telephone, email, live chat, marketing materials, and more
recently, social media.[2] Through the CRM approach and the systems used to facilitate
it, businesses learn more about their target audiences and how to best cater to their
needs. However, adopting the CRM approach may also occasionally lead to
favouritism within an audience of consumers, resulting in dissatisfaction among
customers and defeating the purpose of CRM.

Types
Strategic

Strategic CRM is focused upon the development of a customer-centric business

culture.

Operational

The primary goal of customer relationship management systems is to integrate and

automate sales, marketing, and customer support. Therefore, these systems typically
have a dashboard that gives an overall view of the three functions on a single
customer view, a single page for each customer that a company may have. The
dashboard may provide client information, past sales, previous marketing efforts, and
more, summarizing all of the relationships between the customer and the firm.
Operational CRM is made up of 3 main components: sales force automation,
marketing automation, and service automation.

 Sales force automation works with all stages in the sales cycle, from initially
entering contact information to converting a prospective client into an actual
client. It implements sales promotion analysis, automates the tracking of a

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 client's account history for repeated sales or future sales and coordinates sales,
marketing, call centers, and retail outlets. It prevents duplicate efforts between
a salesperson and a customer and also automatically tracks all contacts and
follow-ups between both parties.

 Marketing automation focuses on easing the overall marketing process to

make it more effective and efficient. CRM tools with marketing automation
capabilities can automate repeated tasks, for example, sending out automated
marketing emails at certain times to customers, or posting marketing
information on social media. The goal with marketing automation is to turn a
sales lead into a full customer. CRM systems today also work on customer
engagement through social media.

 Service automation is the part of the CRM system that focuses on direct
customer service technology. Through service automation, customers are
supported through multiple channels such as phone, email, knowledge bases,
ticketing portals, FAQs, and more.

Analytical

The role of analytical CRM systems is to analyze customer data collected through
multiple sources, and present it so that business managers can make more informed
decisions. Analytical CRM systems use techniques such as data mining, correlation,
and pattern recognition to analyze the customer data. These analytics help improve
customer service by finding small problems which can be solved, perhaps, by
marketing to different parts of a consumer audience differently. For example, through
the analysis of a customer base's buying behavior, a company might see that this
customer base has not been buying a lot of products recently. After scanning through
this data, the company might think to market to this subset of consumers differently,
in order to best communicate how this company's products might benefit this group
specifically.

Collaborative

The third primary aim of CRM systems is to incorporate external stakeholders such as
suppliers, vendors, and distributors, and share customer information across

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organizations. For example, feedback can be collected from technical support call,
which could help provide direction for marketing products and services to that
particular customer in the future

Components

Components in the different types of CRM

The main components of CRM are building and managing customer relationships
through marketing, observing relationships as they mature through distinct phases,
managing these relationships at each stage and recognizing that the distribution of
value of a relationship to the firm is not homogenous. When building and managing
customer relationships through marketing, firms might benefit from using a variety of
tools to help organizational design, incentive schemes, customer structures, and more
to optimize the reach of its marketing campaigns. Through the acknowledgement of
the distinct phases of CRM, businesses will be able to benefit from seeing the
interaction of multiple relationships as connected transactions. The final factor of
CRM highlights the importance of CRM through accounting for the profitability of
customer relationships. Through studying the particular spending habits of customers,
a firm may be able to dedicate different resources and amounts of attention to
different types of consumers.

Relational Intelligence, or awareness of the variety of relationships a customer can

have with a firm, is an important component to the main phases of CRM. Companies
may be good at capturing demographic data, such as gender, age, income, and
education, and connecting them with purchasing information to categorize customers
into profitability tiers, but this is only a firm's mechanical view of customer
relationships. This therefore is a sign that firms believe that customers are still

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resources that can be used for up-sell or cross-sell opportunities, rather than humans
looking for interesting and personalized interactions.

CRM systems include:

 Data warehouse technology, used to aggregate transaction information, to

merge the information with CRM products, and to provide key performance
indicators.

 Opportunity management which helps the company to manage unpredictable

growth and demand, and implement a good forecasting model to integrate
sales history with sales projections.

 CRM systems that track and measure marketing campaigns over multiple
networks, tracking customer analysis by customer clicks and sales.

 Some CRM software is available as a software as a service (SaaS), delivered

via the internet and accessed via a web browser instead of being installed on a
local computer. Businesses using the software do not purchase it, but typically
pay a recurring subscription fee to the software vendor.

 For small businesses a CRM system may consist of a contact manager system
that integrates emails, documents, jobs, faxes, and scheduling for individual
accounts.[21] CRM systems available for specific markets (legal, finance)
frequently focus on event management and relationship tracking as opposed to
financial return on investment (ROI).

 CRM systems for eCommerce, focused on marketing automation tasks, like:

cart rescue, re-engage users with email, personalization.

 Customer-centric relationship management (CCRM) is a nascent sub-

discipline that focuses on customer preferences instead of customer leverage.
CCRM aims to add value by engaging customers in individual, interactive
relationships.

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 Systems for non-profit and membership-based organizations help track
constituents, fundraising, sponsors' demographics, membership levels,
membership directories, volunteering and communication with individuals.

CHAPTER-2

INDUSTRY AND
COMPANY PROFILE

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8
HISTORY OF AUTOMOBILES:-

A motorcycle often called a bike, motorbike, or cycle is a two- or three-

wheeled motor vehicle. Motorcycle design varies greatly to suit a range of different
purposes: long distance travel, commuting, cruising, sport including racing, and road
riding. Motorcycling is riding a motorcycle and related social activity such as joining
a motorcycle club and attending motorcycle rallies.

In 1894, Hildebrand & Wolfmüller became the first series production motorcycle, and
the first to be called a motorcycle. In 2014, the three top motorcycle producers
globally by volume were Honda, Yamaha (both from Japan), and Hero
MotoCorp (India).

In developing countries, motorcycles are overwhelmingly utilitarian due to lower

prices and greater fuel economy. Of all the motorcycles in the world, 58% are in the
Asia-Pacific and Southern and Eastern Asia regions, excluding car-centric Japan.

According to the United States Department of Transportation the number of fatalities

per vehicle mile travelled was 37 times higher for motorcycles than for cars.

The term motorcycle has different legal definitions depending on jurisdiction

(see #Legal definitions and restrictions).

There are three major types of motorcycle: street, off-road, and dual purpose. Within
these types, there are many sub-types of motorcycles for different purposes. There is
often a racing counterpart to each type, such as road racing and street bikes,
or motocross and dirt bikes.

Street bikes include cruisers, sport bikes, scooters and mopeds, and many other types.
Off-road motorcycles include many types designed for dirt-oriented racing classes
such as motocross and are not street legal in most areas. Dual purpose machines like
the dual-sport style are made to go off-road but include features to make them legal
and comfortable on the street as well.

Each configuration offers either specialised advantage or broad capability, and each
design creates a different riding posture.

In some countries the use of pillions (rear seats) is restricted.

9
Experimentation and invention

The first internal combustion, petroleum fuel motorcycle was the Daimler Reawaken.
It was designed and built by the German inventors Gottlieb Daimler and Wilhelm
Maybach in Bad Cannstatt, Germany in 1885. This vehicle was unlike either
the safety bicycles or the boneshaker bicycles of the era in that it had zero degrees
of steering axis angle and no fork offset, and thus did not use the principles of bicycle
and motorcycle dynamics developed nearly 70 years earlier. Instead, it relied on two
outrigger wheels to remain upright while turning.

The inventors called their invention the Reawaken ("riding car"). It was designed as
an expedient testbed for their new engine, rather than a true prototype vehicle.

The first commercial design for a self-propelled cycle was a three-wheel design called
the Butler Petrol Cycle, conceived of Edward Butler in England in 1884. He exhibited
his plans for the vehicle at the Stanley Cycle Show in London in 1884. The vehicle
was built by the Merryweather Fire Engine company in Greenwich, in 1888.

The Butler Petrol Cycle was a three-wheeled vehicle, with the rear wheel directly
driven by a 5/8hp (466W) 600 cc (40 in3; 2¼×5-inch {57×127-mm}) flat twin four
stroke engine (with magneto ignition replaced by coil and battery) equipped
with rotary valves and a float-fed carburettor (five years before Maybach)
and Ackermann steering, all of which were state of the art at the time. Starting was by
compressed air. The engine was liquid-cooled, with a radiator over the rear driving
wheel. Speed was controlled by means of a throttle valve lever. No braking system
was fitted; the vehicle was stopped by raising and lowering the rear driving wheel
using a foot-operated lever; the weight of the machine was then borne by two small
castor wheels. The driver was seated between the front wheels. It wasn't, however, a
success, as Butler failed to find sufficient financial backing.

Many authorities have excluded steam powered, electric motorcycles or diesel-

powered two-wheelers from the definition of a 'motorcycle', and credit the
Daimler Reawaken as the world's first motorcycle. Given the rapid rise in use of
electric motorcycles worldwide, defining only internal-combustion powered two-
wheelers as 'motorcycles' is increasingly problematic.

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If a two-wheeled vehicle with steam propulsion is considered a motorcycle, then the
first motorcycles built seem to be the French Michaux-Perroux steam
velocipede which patent application was filled in December 1868, constructed around
the same time as the American Roper steam velocipede, built by Sylvester H.
Roper Roxbury, Massachusetts. who demonstrated his machine at fairs and circuses in
the eastern U.S. in 1867, Roper built about 10 steam cars and cycles from the 1860s
until his death in 1896.

First motorcycle companies

In 1894, Hildebrand & Wolfmüller became the first series production motorcycle, and
the first to be called a motorcycle (German: Motorrad). Excelsior Motor Company,
originally a bicycle manufacturing company based in Coventry, England, began
production of their first motorcycle model in 1896. The first production motorcycle in
the US was the Orient-Aster, built by Charles Metz in 1898 at his factory in Waltham,
Massachusetts.

In the early period of motorcycle history, many producers of bicycles adapted their
designs to accommodate the new internal combustion engine. As the engines became
more powerful and designs outgrew the bicycle origins, the number of motorcycle
producers increased. Many of the nineteenth century inventors who worked on early
motorcycles often moved on to other inventions. Daimler and Roper, for example,
both went on to develop automobiles.

At the turn of the 19th century the first major mass-production firms were set up. In
1898, Triumph Motorcycles in England began producing motorbikes, and by 1903 it
was producing over 500 bikes. Other British firms were Royal
Enfield, Norton and Birmingham Small Arms Company who began motorbike
production in 1899, 1902 and 1910, respectively.[19] Indian began production in 1901
and Harley-Davidson was established two years later. By the outbreak of the First
World War, the largest motorcycle manufacturer in the world was Indian, producing
over 20,000 bikes per year

11
First World War

During the First World War, motorbike production was greatly ramped up for the war
effort to supply effective communications with front line troops. Messengers on
horses were replaced with despatch riders on motorcycles carrying messages,
performing reconnaissance and acting as a military police. American
company Harley-Davidson was devoting over 50% of its factory output toward
military contract by the end of the war. The British company Triumph Motorcycles
sold more than 30,000 of its Triumph Type H model to allied forces during the war.
With the rear wheel driven by a belt, the Model H was fitted with a 499 cc (30.5 cu in)
air-cooled four-stroke single-cylinder engine. It was also the first Triumph
without pedals.

The Model H in particular, is regarded by many as having been the first "modern
motorcycle". Introduced in 1915 it had a 550 cc side-valve four-stroke engine with a
three-speed gearbox and belt transmission. It was so popular with its users that it was
nicknamed the "Trusty Triumph.

Postwar

By 1920, Harley-Davidson was the largest manufacturer, with their motorcycles being
sold by dealers in 67 countries. By the late 1920s or early 1930s, DKW in Germany
took over as the largest manufacturer. In the 1950s, streamlining began to play an
increasing part in the development of racing motorcycles and the "dustbin fairing"
held out the possibility of radical changes to motorcycle design. NSU and Moto
Guzzi were in the vanguard of this development, both producing very radical designs
well ahead of their time. NSU produced the most advanced design, but after the
deaths of four NSU riders in the 1954–1956 seasons, they abandoned further
development and quit Grand Prix motorcycle racing.

Moto Guzzi produced competitive race machines, and by 1957 nearly all the Grand
Prix races were being won by streamlined machines. The following year, 1958, full
enclosure fairings were banned from racing by the FIM in the light of the safety
concerns.

12
Today

In the 21st century, the motorcycle industry is mainly dominated by the Chinese
motorcycle industry and by Japanese motorcycle companies. In addition to the large
capacity motorcycles, there is a large market in smaller capacity (less than 300 cc)
motorcycles, mostly concentrated in Asian and African countries and produced in
China and India. A Japanese example is the 1958 Honda Super Cub, which went on to
become the biggest selling vehicle of all time, with its 60 millionth unit produced in
April 2008. Today, this area is dominated by mostly Indian companies with Hero
MotoCorp emerging as the world's largest manufacturer of two wheelers.
Its Splendor model has sold more than 8.5 million to date. Other major producers
are Bajaj and TVS Motors

SAFETY

Motorcycles have a higher rate of fatal accidents than automobiles or trucks and
buses. United States Department of Transportation data for 2005 from the Fatality
Analysis Reporting System show that for passenger cars, 18.62 fatal crashes occur per
100,000 registered vehicles. For motorcycles this figure is higher at 75.19 per 100,000
registered vehicles – four times higher than for cars. The same data shows that 1.56
fatalities occur per 100 million vehicle miles travelled for passenger cars, whereas for
motorcycles the figure is 43.47 which is 28 times higher than for cars (37 times more
deaths per mile travelled in 2007). Furthermore, for motorcycles the accident rates
have increased significantly since the end of the 1990s, while the rates have dropped
for passenger cars.

The most common configuration of motorcycle accidents in the United States is when
a motorist pulls out or turns in front of a motorcyclist, violating their right-of-
way. This is sometimes called a SMIDSY, an acronym formed from the motorists'
common response of "Sorry mate, I didn't see you". Motorcyclists can anticipate and
avoid some of these crashes with proper training, increasing their visibility to other
traffic, keeping the speed limits, and not consuming alcohol or other drugs before
riding.

13
The United Kingdom has several organisations dedicated to improving motorcycle
safety by providing advanced rider training beyond what is necessary to pass the basic
motorcycle licence test. These include the Institute of Advanced Motorists (IAM) and
the Royal Society for the Prevention of Accidents (RoSPA). Along with increased
personal safety, riders with these advanced qualifications may benefit from reduced
insurance costs

In South Africa, the Think Bike campaign is dedicated to increasing both motorcycle
safety and the awareness of motorcycles on the country's roads. The campaign, while
strongest in the Gauteng province, has representation in Western Cape, Kazoku Natal
and the Free State. It has dozens of trained marshals available for various events such
as cycle races and is deeply involved in numerous other projects such as the annual
Motorcycle Toy Run.

Motorcycle rider postures

The motorcyclist's riding position depends on rider body-geometry (anthropometry)

combined with the geometry of the motorcycle itself. These factors create a set of
three basic postures.

 Sport – the rider leans forward into the wind and the weight of the upper torso
is supported by the rider's core at low speed and air pressure at high speed (e.g.,
above 50 mph (80 km/h)). The footpegs are below the rider or to the rear. The
reduced frontal area cuts wind resistance and allows higher speeds. At low-speed
this position throws the weight of the rider onto the arms, which can tire the
rider's wrists.

 Standard – the rider sits upright or leans forward slightly. The feet are below
the rider. These are motorcycles that are not specialized to one task, so they do not
excel in any particular area. The standard posture is used with touring and
commuting as well as dirt and dual-sport bikes, and may offer advantages for
beginners.

 Cruiser – the rider sits at a lower seat height with the upper torso upright or
leaning slightly rearward. Legs are extended forwards, sometimes out of reach of

14
 the regular controls on cruiser pegs. The low seat height can be a consideration for
new or short riders. Handlebars tend to be high and wide..

HERO

Hero MotoCorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter
manufacturer based in New Delhi, India. The company is the largest two-wheeler
manufacturer in the world, and also in India, where it has a market share of about 46%
in the two-wheeler category. The 2006 Forbes list of the 200 World's Most Respected
Companies has Hero Honda Motors ranked at #108. On 31 March 2013, the market
capitalization of the company was ₹30,800 crore (US$4.7 billion).

Hero Honda started its operations in 1984 as a joint venture between Hero
Cycles (sometimes called Hero Group, not to be confused with the Hero Group food
company of Switzerland) of India and Honda of Japan. In 2010, when Honda decided
to move out of the joint venture, Hero Group bought the shares held by Honda.
SubsequentlyinAugust2011
In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its

15
parent Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months
after its split from Hero Honda.

"Hero" .is the brand name used by the Munjal brothers for their flagship company,
Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor
Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera,
India. Munjal family and Honda group both owned 26% stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the slogan
'Fill it – Shut it – Forget it' that emphasized the motorcycle's fuel efficiency helped the
company grow at a double-digit pace since inception. In 2001, the company became
the largest two-wheeler manufacturing company in India and globally. It maintains
global industry leadership to date. The technology in the bikes of Hero MotoCorp
(earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese
counterpart Honda

Termination of Honda joint venture

By December 2010, the board of directors of the Hero Honda Group had decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the Honda in JV
Hero Honda. Under the joint venture Hero Group could not export to international
markets (except Nepal, Bangladesh and Sri Lanka) and the termination would mean
that Hero Group could now export. Since the beginning, the Hero Group relied on
their Japanese partner Honda for the technology in their bikes.

The Japanese auto maker will exit the joint venture through a series of off market
transactions by giving the Munjal family—which held a 26% stake in the company—
an additional 26%. Honda, which also has an independent fully owned two-wheeler
subsidiary—Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a
discount and get over ₹6,400 crore for its stake. The discount will be between 30%
and 50% to the current value of Honda's stake as per the price of the stock after the
market closed on December 16, 2010.

The rising differences between the two partners gradually emerged as an irritant.
Differences had been brewing for a few years before the split over a variety of issues,

16
ranging from Honda's reluctance to fully and freely share technology with Hero
(despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's
uneasiness over high royalty pay-outs to the Japanese company. Another major irritant
for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to
merge the company's spare parts business with Honda's new fully owned
subsidiary Honda Motorcycle and Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family,
led by Brijmohan Lal Munjal group, will form an overseas-incorporated special
purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by
bridge loans. This SPV would eventually be thrown open for private equity
participation, and those in the fray include Warburg Pincus, Kohlberg Kravis
Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Formation of Hero MotoCorp

The name of the company was changed from Hero Honda Motors Limited to Hero
MotoCorp Limited on 29 July 2011. The new brand identity and logo of Hero
MotoCorp were developed by the British firm Wolff Olins. The logo was revealed on
9 August 2011 in London, to coincide with the third test match between England and
India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free
to use any vendor for its components instead of just Honda-approved vendors.

On 21 April 2014, Hero MotoCorp announced their plan on a ₹254

crore (US$39 million) joint venture with Bangladesh's Nitol Niloy Group in the next
five years. also hero updated its 100cc engine range in 2014 for 100cc bikes except
hero dawn.

49% stake in Erik Buell Racing

In July 2013, HMC acquired 49.2% shareholding in Erik Buell Racing, a motorcycle
sport company which produced street and racing motorcycles based in East Troy,
Wisconsin, United States. EBR filed for bankruptcy in 2015 and Hero Motocorp
proceed to acquire certain assets for ₹18.2 crore (US$2.8 million).

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Operations

Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurgaon,

Neemrana, Haridwar and Halol under Green Field stage. These plants together have a
production capacity of 76 lakh+ 2-wheelers per year. Hero MotoCorp has a sales and
service network with over 6,000 dealerships and service points across India. It has a
customer loyalty program since 2000, called the Hero Honda Passport Program which
is now known as Hero GoodLife Program.

It is reported that Hero MotoCorp has five joint ventures or associate companies,
Munjal Showa, AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto
Components, that supply a majority of its components.

The company has a stated aim of achieving revenues of ₹64,000

crore (US$9.8 billion) and volumes of 10 lakh two-wheelers by 2016–17. This in
conjunction with new countries where they can now market their two-wheelers
following the disengagement from Honda. Hero MotoCorp hopes to achieve 10 per
cent of their revenues from international markets, and they expected to launch sales
in Nigeria by end-2011 or early-2012.

Company performance

The company has sold over 4.7 crore 2-wheelers since its inception in 1984 till March
2013. It sold 60.7 lakh 2-wheelers in 2012, out of which 55 lakh were motorcycles.
Hero MotoCorp sells more two wheelers than the second, third and fourth placed two-
wheeler companies put together. Its most popular bike Hero Honda Splendour sells
more than ten lakh units per year.

In 2013, Hero MotoCorp registered best ever calendar year performance of more than
61 lakh unit sales. By selling 6,25,000 units in the month of October, it became the
first-ever manufacturer to cross landmark 6 lakh unit sales in a month. In the last
quarter of the year or say in the festive season, the company sold more than 16 lakh
units, while in non festive time in April–May 2013, it managed to sell out quite good
numbers of units—11 lakh.

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YAMAHA

Yamaha Motor Company Limited is a Japanese manufacturer of motorcycles,

marine products such as boats and outboard motors, and other motorized products.
The company was established in 1955 upon separation from Yamaha
Corporation (however Yamaha Corporation is still the largest shareholder with
12.21%, as of June 30, 2014), and is headquartered in Iwata, Shizuoka, Japan. The
company conducts development, production and marketing operations through 109
consolidated subsidiaries as of 2012.

Led by Genichi Kawakami, the company’s first president, Yamaha Motor began
production of its first product, the YA-1, in 1955. The 125cc motorcycle won the
3rd Mount Fuji Ascent Race in its class.

The company's products includes motorcycles, scooters, motorized bicycles,

boats, sail boats, personal water craft, swimming pools, utility boats, fishing boats,
outboard motors, 4-wheel ATVs, recreational off-road vehicles, go-kart engines, golf
carts, multi-purpose engines, electrical generators, water pumps, snowmobiles,
small snow throwers, automobile engines, surface mounters, intelligent machinery,
industrial-use unmanned helicopters, electrical power units
for wheelchairs and helmets.The company is also involved in the import and sales of
various types of products, development of tourist businesses and management of
leisure, recreational facilities and related services. Yamaha’s motorcycle sales are the
second largest in the world Outboard motor and Yamaha is the world leader in water
vehicle sales.

19
Beginnings: 1955

The motorcycle division of Yamaha was founded in 1955, and was headed by Genichi
Kawakami. Yamaha's initial product was a 125cc two-cycle, single cylinder
motorcycle, the YA-1, which was a copy of the German DKW RT 125. The YA-1 was
a competitive success at racing from the beginning, winning not only the 125cc class
in the Mt. Fuji Ascent, but also sweeping the podium with first, second and third place
in the All Japan Autobike Endurance Road Race that same year. Early success in
racing set the tone for Yamaha, as competition in many varieties of motorcycle racing
has been a key endeavor of the company throughout its history, often fueled by a
strong rivalry with Honda and other Japanese manufacturers.

Yamaha began competing internationally in 1956 when they entered the Catalina
Grand Prix, again with the YA-1, at which they placed sixth. The YA-1 was followed
by the YA-2 of 1957, another 125cc two stroke, but with significantly improved frame
and suspension. The YD-1 of 1957 was a 250cc two-stroke twin cylinder motorcycle,
resembling the YA-2, but with a larger and more powerful motor. A performance
version of this bike, the YDS-1 housed the 250cc two-stroke twin in a double
downtube cradle frame and offered the first five-speed transmission in a Japanese
motorcycle. This period also saw Yamaha offer its first outboard marine engine.

Success and growth in the 1960s

By 1963 Yamaha's dedication to both the two-stroke engine and racing paid off with
their first victory in international competition, at the Belgium GP, where they won the
250cc class. Success in sales was even more impressive, and Yamaha set up the first
of its international subsidiaries in this period beginning with Thailand in 1964, and the
Netherlands in 1968. 1965 saw the release of a 305cc two-stroke twin, the flagship of
the company's lineup. It featured a separate oil supply which directly injected oil into
the gasoline prior to combustion (traditionally riders had to pre-mix oil into gasoline
together before filling the gas tank on two stroke engines). In 1967 a new larger
displacement model was added to the range, the 350cc two stroke twin R-1.

In 1968 Yamaha launched their first four-stroke motorcycle, the XS-1. The Yamaha
XS-1 was a 650cc four-stroke twin, a larger and more powerful machine that equaled
the displacement and performance of the popular British bikes of the era, such as the

20
Triumph Bonneville and BSA Gold Star. Yamaha continued on with both the two-
stroke line and four-stroke twins at a time that other Japanese manufacturers were
increasingly moving to four cylinder four-stroke machines, a trend led by Honda in
1969 with the legendary CB-750 four-stroke four-cylinder cycle.

Four stroke era begins: the 1970s

Not until 1976 would Yamaha answer the other Japanese brands with a multi-cylinder
four stroke of their own. The XS-750 (and later 850) a 750cc triple cylinder machine
with shaft final drive was introduced almost seven years after Honda's breakthrough
bike. Yamaha's first four-cylinder model, the XS-1100 followed in 1978, again with
shaft drive. Despite being heavier and more touring oriented than its rivals it produced
an impressive string of victories in endurance racing.

The 1970s also saw some of the first dedicated off-road bikes for off-road racing and
recreation. Yamaha was an early innovator in dirt-bike technology, and introduced the
first single-shock rear suspension, the trademarked "Monoshock" of 1973. It appeared
in production on the 1974 Yamaha YZ-250, a model which has continued in
production, with many updates, until 2015, making it Yamaha's longest continuous
model and name.

Yamaha continued racing throughout the 1960s and 1970s with increasing success in
several formats. The decade of the 1970s was capped by the XT500 winning the
first Paris-Dakar Rally in 1979.

1980s: diversification and innovation

By 1980 the combination of consumer preference and environmental regulation made

four strokes increasingly popular. Suzuki ended production of their GT two stroke
series, including the flagship water-cooled two-stroke 750cc GT-750 in 1977.
Kawasaki, who had considerable success throughout the 1970s with their two-stroke
triples of 250cc, 350cc, 500cc and 750cc ended production of road-going two strokes
in 1980. Yamaha bucked this trend and continued to refine and sell two-strokes for the
street into the 1980s. These bikes were performance oriented, water-cooled twin
cylinder machines, designed to achieve excellent performance taking advantage of the
lower weight of two strokes. The RZ-250 of 1980 was the progenitor of this series.

21
The RZ-350, the largest displacement model, was a popular hot-rod bike of the 1980s
and continued to be sold in some countries into the early 1990s.

Throughout the 1980s the motorcycle industry gradually went from building a few
basic but versatile models designed to work well in many roles, to offering many
more specialized machines designed to excel in particular niches. These included
racing and performance street riding, touring, motocross racing, enduro and
recreational off-road riding, and cruising. Yamaha branched out from the relatively
small number of UJMs (Universal Japanese Motorcycle) at the start of the decade to a
much larger set of offerings in several clearly defined markets at the end of the
decade.

The XV750 of 1981 featured an air-cooled V-twin four stroke engine and cruiser
styling, and was one of the first Japanese cruiser style motorcycles. By the end of the
1980s Yamaha had offered dozens of cruiser styled bikes in a variety of displacements
and engine configurations.

The RZV500 was one of the first "repli-racers", a near copy of Kenny Roberts
competition GP bike, it featured a liquid-cooled two-stroke motor of 500cc
displacement in a V4 configuration, along with a perimeter frame and full fairing.

A more popular and practical high-performance model for the street was introduced in
1985, the FZ750. It was an innovative 750cc four-stroke inline four cylinder model. It
was the first motorcycle to feature a five valve cylinder head, something Yamaha
became well known for. It also featured a cylinder block canted forward at 45 degrees,
and a box-section steel perimeter frame. Production of the FZ continued until 1991.

The 1990s: Performance bikes and a spin-off brand

In 1998 Yamaha marketed a 1000cc four cylinder road bike called the YZF 'R1', this
model introduced a new style of gearbox design which shortened the overall length of
the motor/gearbox case, to allow a more compact unit. This, in turn allowed the motor
to be placed in the frame further forward, designed to improve handling in a short
wheel-based frame.

In 1995, Yamaha announced the creation of Star Motorcycles, a new brand name for
its cruiser series of motorcycles in the American market. In other markets, Star
motorcycles are still sold under the Yamaha brand. This was an attempt to create a

22
brand identity more closely aligned with the cruiser market segment, one of the
largest and most lucrative in the USA.

The 2000s: Expansion and consolidation

In 2007, Yamaha established the Philippine operations and distributes Yamaha

motorcycles under the corporate name of Yamaha Motor Philippines, Inc., one of
more than 20 worldwide subsidiaries operating on all continents.

Motorcycle racing highlights

In motorcycle racing Yamaha has won 39 world championships, including 6

in MotoGP and 9 in the preceding 500 cc two-stroke class, and 1 in World Superbike.
In addition Yamaha have recorded 208 victories at the Isle of Man TT and head the
list of victories at the Twit 40. Past Yamaha riders include: Giacomo Agostini, Bob
Hannah, Heikki Mikkola, Kenny Roberts, Eddie Lawson, Wayne Rainey, Jeremy
McGrath, Stefan Merriman, Dave Molyneux, Ian Hutchinson, Phil Read, Chad
Reed, Ben Spies and Jorge Lorenzo. Their current lineup consists of nine-time world
champion Valentino Rossi and Maverick Viñales.

The Yamaha YZ450F won the AMA Supercross Championship two years in a row, in
2008 with Chad Reed, and 2009 James Stewart. Yamaha was the first to build a
production monoshock motocross bike (1975 for 250 and 400, 1976 for 125) and one
of the first to have a water-cooled motocross production bike (1977 in works bikes,
1981 in off-the-shelf bikes). Yamaha's first Motocross competition four-stroke bike,
the YZ400F, won the 1998 USA outdoor national Championship with factory rider
Doug Henry.

Since 1962, Yamaha made production road racing Grand Prix motorcycles that any
licensed road racer could purchase. In 1970, non-factory privateer teams dominated
the 250 cc World Championship with Great Britain's Rodney Gould winning the title
on a Yamaha TD2.

Yamaha also sponsors several professional ATV riders in several areas of racing, such
as cross country racing and motocross. Yamaha has had success in cross country with
their YFZ450, ridden by Bill Ballance, winning 9 straight titles since 2000. Yamaha's
other major rider, Traci Cecco, has ridden the YFZ450 to 7 titles, with the first in
2000. In ATV motocross, Yamaha has had success with Dustin Nelson and Pat Brown,
23
both who race the YFZ450. Pat Brown's best season was a 3rd place title in 2007,
while Nelson has had two 1st place titles in the Yamaha/ITP Quadcross, one in 2006
and the other in 2008.

Snowmobiles

In 2010, Yamaha was the only snowmobile manufacturer to use 4-stroke engines
across its range. In Canada, the VK 540 model is still available as a 2-stroke. Yamaha
had introduced four-strokes to their line-up in 2003, and the line-up became four-
stroke based for model year 2005. The RX-1, released in 2003, was the first
performance-oriented four-stroke snowmobile on the market. It was not, however, the
first modern four-stroke snowmobile produced. That honor belongs to Arctic Cat for
their Yellowstone Special, released in 2000, which was designed as a rental sled that
could meet Yellowstone National Park's stringent emission requirement. However,
Yamaha received much criticism for its weight disadvantage when compared to
similar two-strokes, despite its fuel economy and low-range torque. Yamaha is now
using four-stroke technology with the introducing of their 80FI engine, which is
equipped on the Phazer and Venture Lite models. This engine has one of the
highest specific output of any four-stroke in production, with 160 HP/L, Yamaha
achieves this even without the use of a forced induction system. Yamaha is also a key
player in the "four-stroke wars", which are a series of advertisements from
opponent Ski-Doo, who claim their E-tec and power-tec equipped two-strokes are still
cleaner and more efficient than four-strokes, while Yamaha still claims the four-
strokes are cleaner. Yamaha also broke a multi-year absence from snow-cross in the
winter of 2006/2007 with their introduction of a factory race team headed by
former Arctic Catracer Robbie Malinowski.

Yamaha was the first brand to win with a 4-stroke in a professional snow cross race.
This happened in 2006 at the WPSA snow cross championship.

24
TVS

TVS Motor Company is the third largest two-wheeler manufacturer in India, with a
revenue of over 13,000 Cr ($2 billion) in 2016-17. It is the flagship company of the
Rs. 40,000 Cr ($6 billion, in 2014-15) TVS Group. The company has an annual sales
of 3 million units and an annual capacity of over 4 million vehicles. TVS Motor
Company is also the 2nd largest exporter in India with exports to over 60 Countries.

TVS Motor Company Ltd (TVS Motor), member of the TVS Group, is the largest
company of the group in terms of size and turnover, with more than 3 crore (30
million) customers riding a TVS bike.

TVS was established by Mr. TV Sundaram Iyengar. He began with Delhi first bus
service in 1911 and founded T.V. Sundaram Iyengar and Sons Limited, a company in
the transportation business with a large fleet of trucks and buses under the name of
Southern Roadways Limited. When he died in 1955, his sons took the company ahead
with several forays in the automobile sector, including finance, insurance, two-
wheelers/ three wheelers, tires and components, housing, aviation, logistics etc. The
group has managed to run 97 companies that account for a combined turnover of
nearly US$6 billion.

new models of motorcycles.

2010

- TVS Motor Company has launched India’s first auto-clutch motorcycle- TVS Jive,
in Chandigarh.

25
- TVS Motor Company has given the Bonus in the Ratio of 1:1

2011

- TVS Motor Company joins hands with Syndicate Bank for three-wheelers

- TVS Motor Company has developed an engine that is 20 per cent more fuel efficient
and is usable both in scooters and motorcycles.

2012

- TVS motor company signed a MOU with Central Bank of India to provide attractive
financing options for its three wheeler TVS king across all 4,000 branches operating
in India.

- TVS Motor Company appoints Sudarshan Venue as Vice President

- TVS Motor Company Ltd is a winner of the CII ITC Sustainability Awards 2012

2013
-TVS Motor Company wins Silicon India Mentor Graphics Best VLSI / Embedded
Design - Automotive Award
-TVS Motor Company and BMW Motorrad Sign Cooperation Agreement
-India’s TVS Motor Company to set up assembly line in Uganda

2014
-TVS Motor Company launches TVS TRU4 Synthetic 10W 30 Engine Oil
-India’s TVS Motor Company launches Star HLX 125 Motorcycle in Tanzania
-TVS Motor Company launches Stylish TVS StaR City+
-Asian Network for Quality Award 2014

2015
-TVS Motor Co. Ltd. - TVS Motor Company & Kangra Central Co-operative Bank in
Himachal Pradesh sign MOU
26
-TVS Motor Co. Ltd. has launched the 2015 edition of TVS Phoenix 125 for the drum
version and for the disc brake version.
-TVS Motor Company Ltd has introduced a special edition of its legendary TVS XL
Super" in celebration of crossing the milestone of 1 crore mark in sales
-TVS Motor Company Ltd signs MOU with TN Government for investment of 350
Crore
-TVS Motor Company Ltd has launched its motorcycle "TVS Sport" with improved
mileage and additional features

2016
-TVS Motor launches TVS Apache RTR 200 in Indonesia
-TVS MOTOR launches All New TVS Victor and TVS Apache RTR 200 in India
-TVS Motor Company launches Powerful Four Stroke TVS XL 100 in Tamil Nadu
-TVS Motor Company launches Powerful Four Stroke TVS XL 100 in Kerala
-TVS Motor Company launches innovative service app for its customers
-TVS Motor Company launches Powerful Four Stroke TVS XL 100 in Andhra
Pradesh and Telangana
-TVS Motor Company launches Powerful Four Stroke TVS XL 100 in Madhya
Pradesh
-TVS Motor Company two-wheelers now available online on Snapdeal
-TVS launches TVS XL 100 in Karnataka
-TVS launches Scooty Zest 110 Himalayan Highs special edition
-TVS Motor Company launches Jupiter MillionR Special Edition

Early years 100

Sundaram Clayton was founded in 1962 in collaboration with Clayton Deandre

Holdings, United Kingdom. It manufactured brakes, exhausts, compressors and
various other automotive parts. The company set up a plant at Hosur in 1978, to
manufacture mopeds as part of their new division. In 1980, TVS 50, India's first two-
seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. A
technical collaboration with the Japanese auto giant Suzuki Ltd. resulted in the joint-
venture between Sundaram Clayton Ltd and Suzuki Motor Corporation, in 1982.
Commercial production of motorcycles began in 1984.[2]

27
Characteristics of TVS Motor

TVS Motor was the first Indian company to deploy a catalytic converter in a 100 cc
motorcycle and the first to indigenously produce a four stroke 150cc motorcycle. The
list of firsts from TVS: "India’s first 2-seater moped – TVS 50", "India’s first
indigenous scooterette - TVS Scooty", "India’s first Digital Ignition - TVS Champ",
"India’s first fully indigenous motorcycle - Victor", "First Indian company to launch
ABS in a motorcycle - Apache RTR Series", "The first scooter with Body-Balance
Technology – TVS Wego","The clutch less motorcycle=Jive", "Indonesia’s first dual-
tone exhaust noise technology – Tomax" & "India's first oil-cooled chamber construct
with Ram-Air assist- TVS Apache RTR 200 4V". TVS has gone through extensive
quality improvement programs thus producing world class two-wheelers.

Awards

TVS Motor won prestigious the Deming Application Prize in 2002. In the same year,
the work done for the TVS Victor motorcycle won TVS Motor the National Award for
successful commercialization of indigenous technology from the Technology
Development Board, Ministry of Science & Technology, Government of India. In
2004, TVS Scooty Pep won the 'Outstanding Design Excellence Award'
from BusinessWorldmagazine and the National Institute of Design, Ahmedabad. The
effective implementation of Total Productivity Maintenance practices won TVS
Motor the TPM Excellence Award given by the Japan Institute of Plant Maintenance
in 2008.TVS Motor has won several management awards, notable among them being
the Emerging Corporate Giant in the Private Sector awarded by The Economic
Times and the Harvard Business School Association of India MoInvestor Friendly
Company awards. Its advertising practices won it the Good Advertising Award by
Auto India Best Brand Awards, 2009.

28
BAJAJ

Bajaj Auto Limited is a global two-wheeler and three-wheeler manufacturing

company. Bajaj Auto manufactures and sells motorcycles, scooters and auto
rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal
Bajaj in Rajasthan in the 1940s. It is based in Pune, Mumbai, with plants
in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The oldest
plant at Akurdi (Pune) now houses the R&D centre 'Ahead'.

Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-
largest in India. It is the world's largest three-wheeler manufacturer.

On May 2015, its market capitalization was ₹640 billion (US$9.8 billion), making it
India's 23rd largest publicly traded company by market value. The Forbes Global
2000 list for the year 2012 ranked Bajaj Auto at 1,416.

Bajaj Auto came into existence on 29 November 1944 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-
wheelers in India. In 1959, it obtained a licence from the Government of India to
manufacture two-wheelers and three-wheelers and obtained Licence from Piaggio to
manufacture Vespa Brand Scooters in India and started making Vespa 150 scooters, it
became a public limited company in 1960. In 1970, it rolled out its 100,000th
vehicle. In 1977, it sold 100,000 vehicles in a financial year.

29
With the launch of motorcycles in 1986, the company has changed its image from a
scooter manufacturer to a two-wheeler manufacturer.

In 2017 it was announced that Bajaj Auto and Triumph Motorcycles Ltd would form
an alliance to build mid-capacity motorcycles.

According to the authors of Globality: Competing with Everyone from Everywhere

for Everything, Bajaj has operations in 50 countries creating a line of bikes targeted to
the preferences of entry-level buyers.

The third largest in the world and the second largest in India, Bajaj Auto has been
there for over 60 years now. Having successfully changed its image from a scooter
manufacturer to a motorcyle manufacturer, the company has flourished with its plants
in Chakan, Waluj and Pantnagar. Bajaj has grown its operations in 50 countries across
the world.

In the year 1990, the teenagers were offered the Bajaj Sunny. Being a scooterette, it
had a 60cc engine and attained a maximum speed of 50 km/h. However, the model is
no longer on the shelves. Then on every year, there was a new launch by the company.
1991 saw the launch of the Kawasaki Bajaj 4S Champion. Starting from 1993, the
company launched the vehicles (Bajaj Stride, Classic and Super Excel respectively) in
succession every year till 1995.

In the year 1997, the Kawasaki Bajaj Boxer and the RE diesel Auto rickshaw were
introduced. The Chakan plant was functional the next year. Roll outs started at the
Waluj plant and in 1998, Kawasaki Bajaj Caliber hit the roads. This bike was capable
of a top speed of 95 km/h. The year had yet another remarkable achievement. Bajaj
Legend, India’s first four-stroke scooter rolled out of the Akurdi plant. A four stroke
motor meant that no oil has to be mixed with the gas, which resulted in low emissions
and high efficiency.

In 1999, Bajaj came up with yet another scooterette called the Spirit. Ideal for college
students, it was powered by a two-stroke, 60cc, single-cylinder and air-cooled engine.
It was one of the eighteen models Bajaj Auto launched in eighteen months. The same
year, Caliber motorcycle notched up 100,000 sales in record time of 12 months. In
2000, the y2k year, Bajaj Suffire was introduced.

30
Current Products

Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most recently,
cars. Bajaj Auto is India's largest exporter of motorcycles and three-wheelers. Bajaj
Auto's exports accounted for approx. 35% of its total sales. 47% of its exports are
made to Africa. Boxer motorcycle is the largest selling single brand in Africa.

Motorcycles Manufactured by Bajaj auto Company

Motorcycles in production include the Platina, Discover, Pulsar and Avenger and CT
100. In FY 2012-13, it sold approximately 3.76 million motorcycles which accounted
for 31% of the market share in India. Of these, approximately 2.46 million
motorcycles (66%) were sold in India and remaining 34% were exported.

Three wheeler

It is the world's largest manufacturer of 3-wheelers and accounts for almost 84% of
India's three-wheeler exports. During the FY 2012-13, it sold approx. 480,000 three-
wheelers which was 57% of the total market share in India. Out of these 480,000
three-wheelers, 53% were exported and remaining 47% were sold in India.

Low cost cars

 Bajaj Quote

In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor to
develop a US$2,500 car, aiming at a fuel efficiency of 30 kilometres per litre
(85 mpg-imp; 71 mpg-US) (3.3 L/100 km), or twice an average small car, and carbon
dioxide emissions of 100 g/km.

On 3 January 2012, Bajaj auto unveiled the Bajaj RE60, a mini car for intra-city urban
transportation. The target customer group will be Bajaj's three-wheeler
customers According to its Managing Director Rajiv Bajaj, the RE60 powered by a
new 200 cc rear mounted petrol engine will have a top speed of 70 kilometres per
hour (43 mph), a mileage of 35 kilometres per litre (99 mpg-imp; 82 mpg-US) and carbon
dioxide emissions of 60 g/km.

31
Acquisitions

Bajaj Auto bought a controlling stake in the Tempo Firodia company, renaming it
"Bajaj Tempo". Germany's Daimler-Benz, a long-time collaborator with Firodia
because of their ownership of the original Tempo works in Germany, owned 16% of
Bajaj Tempo. Daimler sold their stake back to the Feronia group in 2001, meaning
that they once again held a controlling interest, with BAL retaining 24% of the shares.
It was agreed that Bajaj Tempo would gradually phase out the use of the "Tempo"
brand name, as it still belonged to Mercedes-Benz. The name of the company was
changed to Force Motors in May 2005, dropping "Bajaj" as well as "Tempo", over
the objections of Bajaj Auto with whom the company shares a long history as well as
a compound wall.

Bajaj-Kawasaki end tie-up in april 2017

Bajaj and Kawasaki have ended their 33-year alliance in India following deepening of
ties between the latter and its Austrian partner KTM. Bajaj Auto had an alliance with
Kawasaki for the sale and after sales service of Kawasaki motorcycles through its
Probiking, a premium bike dealership network, since 2009. These Probiking
dealerships were later converted to KTM dealerships.

32
CHAPTER-3

REVIEW OF
LITERATURE

33
34
Consumer Relationship Managements:-

Meaning:-

Customer relationship management (CRM) is an approach to managing a

company's interaction with current and potential customers. It uses data analysis about
customers' history with a company and to improve business relationships with
customers, specifically focusing on customer retention and ultimately driving sales
growth.

One important aspect of the CRM approach is the systems of CRM that compile data
from a range of different communication channels, including a company's website,
telephone, email, live chat, marketing materials, and more recently, social media.
Through the CRM approach and the systems used to facilitate it, businesses learn
more about their target audiences and how to best cater to their needs. However,
adopting the CRM approach may also occasionally lead to favoritism within an
audience of consumers, resulting in dissatisfaction among customers and defeating the
purpose of CRM

Types:-

 Strategic

Strategic CRM is focused upon the development of a customer-centric business

culture

 Operational

The primary goal of customer relationship management systems is to integrate and

automate sales, marketing, and customer support. Therefore, these systems typically
have a dashboard that gives an overall view of the three functions on a single
customer view, a single page for each customer that a company may have. The
dashboard may provide client information, past sales, previous marketing efforts, and
more, summarizing all of the relationships between the customer and the firm.

35
Operational CRM is made up of 3 main components: sales force automation,
marketing automation, and service automation.

 Sales force automation works with all stages in the sales cycle, from initially
entering contact information to converting a prospective client into an actual
client. It implements sales promotion analysis, automates the tracking of a
client's account history for repeated sales or future sales and coordinates sales,
marketing, call centers, and retail outlets. It prevents duplicate efforts between
a salesperson and a customer and also automatically tracks all contacts and
follow-ups between both parties.

 Marketing automation focuses on easing the overall marketing process to

make it more effective and efficient. CRM tools with marketing automation
capabilities can automate repeated tasks, for example, sending out automated
marketing emails at certain times to customers, or posting marketing
information on social media. The goal with marketing automation is to turn a
sales lead into a full customer. CRM systems today also work on customer
engagement through social media.

 Service automation is the part of the CRM system that focuses on direct
customer service technology. Through service automation, customers are
supported through multiple channels such as phone, email, knowledge bases,
ticketing portals, FAQs, and more.

 Analytical:-

The role of analytical CRM systems is to analyze customer data collected through
multiple sources, and present it so that business managers can make more informed
decisions. Analytical CRM systems use techniques such as data mining, correlation,
and pattern recognition to analyze the customer data. These analytics help improve
customer service by finding small problems which can be solved, perhaps, by
marketing to different parts of a consumer audience differently. For example, through
the analysis of a customer base's buying behavior, a company might see that this
customer base has not been buying a lot of products recently. After scanning through
this data, the company might think to market to this subset of consumers differently,

36
in order to best communicate how this company's products might benefit this group
specifically.

 Collaborative:-

The third primary aim of CRM systems is to incorporate external stakeholders such as
suppliers, vendors, and distributors, and share customer information across
organizations. For example, feedback can be collected from technical support call,
which could help provide direction for marketing products and services to that
particular customer in the future

Components:-

Components in the different types of CRM

The main components of CRM are building and managing customer relationships
through marketing, observing relationships as they mature through distinct phases,
managing these relationships at each stage and recognizing that the distribution of
value of a relationship to the firm is not homogenous. When building and managing
customer relationships through marketing, firms might benefit from using a variety of
tools to help organizational design, incentive schemes, customer structures, and more
to optimize the reach of its marketing campaigns. Through the acknowledgement of
the distinct phases of CRM, businesses will be able to benefit from seeing the
interaction of multiple relationships as connected transactions. The final factor of
CRM highlights the importance of CRM through accounting for the profitability of
customer relationships. Through studying the particular spending habits of customers,
a firm may be able to dedicate different resources and amounts of attention to
different types of consumers.
37
Relational Intelligence, or awareness of the variety of relationships a customer can
have with a firm, is an important component to the main phases of CRM. Companies
may be good at capturing demographic data, such as gender, age, income, and
education, and connecting them with purchasing information to categorize customers
into profitability tiers, but this is only a firm's mechanical view of customer
relationships. This therefore is a sign that firms believe that customers are still
resources that can be used for up-sell or cross-sell opportunities, rather than humans
looking for interesting and personalized interactions.

CRM systems include:

 Data warehouse technology, used to aggregate transaction information, to

merge the information with CRM products, and to provide key performance
indicators.

 Opportunity management which helps the company to manage unpredictable

growth and demand, and implement a good forecasting model to integrate
sales history with sales projections.

 CRM systems that track and measure marketing campaigns over multiple
networks, tracking customer analysis by customer clicks and sales.

 Some CRM software is available as a software as a service (SaaS), delivered

via the internet and accessed via a web browser instead of being installed on a
local computer. Businesses using the software do not purchase it, but typically
pay a recurring subscription fee to the software vendor.

 For small businesses a CRM system may consist of a contact manager system
that integrates emails, documents, jobs, faxes, and scheduling for individual
accounts. CRM systems available for specific markets (legal, finance)
frequently focus on event management and relationship tracking as opposed to
financial return on investment (ROI).

 CRM systems for eCommerce, focused on marketing automation tasks, like:

cart rescue, re-engage users with email, personalization.

38
  Customer-centric relationship management (CCRM) is a nascent sub-
discipline that focuses on customer preferences instead of customer leverage.
CCRM aims to add value by engaging customers in individual, interactive
relationships.

 Systems for non-profit and membership-based organizations help track

constituents, fundraising, sponsors' demographics, membership levels,
membership directories, volunteering and communication with individuals.

Effect on customer satisfaction:-

Customer satisfaction has important implications for the economic performance of

firms because it has the ability to increase customer loyalty and usage behavior and
reduce customer complaints and the likelihood of customer defection. The
implementation of a CRM approach is likely to have an effect on customer
satisfaction and customer knowledge for a variety of different reasons.

Firstly, firms are able to customize their offerings for each customer. By accumulating
information across customer interactions and processing this information to discover
hidden patterns, CRM applications help firms customize their offerings to suit the
individual tastes of their customers. This customization enhances the perceived
quality of products and services from a customer's viewpoint, and because perceived
quality is a determinant of customer satisfaction, it follows that CRM applications
indirectly affect customer satisfaction. CRM applications also enable firms to provide
timely, accurate processing of customer orders and requests and the ongoing
management of customer accounts. For example, Piccoli and Applegate discuss how
Wyndham uses IT tools to deliver a consistent service experience across its various
properties to a customer. Both an improved ability to customize and a reduced
variability of the consumption experience enhance perceived quality, which in turn
positively affects customer satisfaction. Furthermore, CRM applications also help
firms manage customer relationships more effectively across the stages of relationship
initiation, maintenance, and termination.

Customer benefits:-With CRM systems customers are served better on day to day
process and with more reliable information their demand of self service from

39
companies will decrease. If there is less need to interact with the company for
different problems, customer satisfaction level increases. These central benefits of
CRM will be connected hypothetically to the three kinds of equity that are
relationship, value and brand, and in the end to customer equity. Seven benefits were
recognized to provide value drivers.

1. Enhanced ability to target profitable customers.

2. Integrated assistance across channels

3. Enhanced sales force efficiency and effectiveness

4. Improved pricing

5. Customized products and services

6. Improved customer service efficiency and effectiveness

7. Individualized marketing messages also called campaigns

8. Connect customers and all channels on a single platform.

In 2012, after reviewing the previous studies, someone selected some of those benefits
which are more significant in customer's satisfaction and summarized them into the
following cases:

1. Improve customer services: In general, customers would have some questions,

concerns or requests. CRM services provide the ability to a company for
producing, allocating and managing requests or something made by
customers. For example, call center software, which helps to connect a
customer to the manager or person who can best assist them with their existing
problem, is one of the CRM abilities that can be implemented to increase
efficiency.

2. Increased personalized service or one-to-one service: Personalizing customer

service or one-to-one service provides companies to improve understanding

40
 and gaining knowledge of the customers and also to have better knowledge
about their customers' preferences, requirements and demands.

3. Responsive to customer's needs: Customers' situations and needs can be

understood by the firms focusing on customer needs and requirements.

4. Customer segmentation: In CRM, segmentation is used to categorize

customers, according to some similarity, such as industry, job or some other
characteristics, into similar groups. Although these characteristics, can be one
or more attributes. It can be defined as a subdividing the customers based on
already known good discriminator.

5. Improve customization of marketing: Meaning of customization of marketing

is that, the firm or organization adapt and change its services or products based
on presenting a different and unique product or services for each customer.
With the purpose of ensuring that customer needs and requirements are met
Customization is used by the organization. Companies can put investment in
information from customers and then customize their products or services to
maintain customer interests.

6. Multichannel integration: Multichannel integration shows the point of co

creation of customer value in CRM. On the other hand, a company's skill to
perform multichannel integration successfully, is heavily dependent on the
organization's ability getting together customer information from all channels
and incorporate it with other related information.

7. Time saving: CRM will let companies to interact with customers more
frequently, by personalized message and communication way which can be
produced rapidly and matched on a timely basis, and finally they can better
understand their customers and therefore look forward to their needs.

8. Improve customer knowledge: Firms can make and improve products and
services through the information from tracking (e.g. via website tracking)
customer behavior to customer tastes and needs. CRM could contribute to a

41
 competitive advantage in improving firm's ability of customer information
collecting to customize products and services according to customer needs.

Market trends:-

In the Gartner CRM Summit 2010 challenges like "system tries to capture data from
social networking traffic like Twitter, handles Facebook page addresses or other
online social networking sites" were discussed and solutions were provided that
would help in bringing more clientele. Many CRM vendors offer subscription-based
web tools (cloud computing) and SaaS. Some CRM systems are equipped with mobile
capabilities, making information accessible to remote sales staff. Sales force.com was
the first company to provide enterprise applications through a web browser, and has
maintained its leadership position.

Traditional providers have recently moved into the cloud-based market via
acquisitions of smaller providers: Oracle purchased Right Now in October 2011 and
SAP acquired SuccessFactors in December 2011.

The era of the "social customer" refers to the use of social media (Twitter, Facebook,
LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.)
by customers. CRM philosophy and strategy has shifted to encompass social networks
and user communities.

Sales forces also play an important role in CRM, as maximizing sales effectiveness
and increasing sales productivity is a driving force behind the adoption of CRM.
Empowering sales managers was listed as one of the top 5 CRM trends in 2013.

Another related development is vendor relationship management (VRM), which

provide tools and services that allow customers to manage their individual
relationship with vendors. VRM development has grown out of efforts by
ProjectVRM at Harvard's Berkman Canter for Internet & Society and Identity
Commons' Internet Identity Workshops, as well as by a growing number of startups
and established companies. VRM was the subject of a cover story in the May 2010
issue of CRM Magazine.

42
Pharmaceutical companies were some of the first investors in sales force automation
(SFA) and some are on their third- or fourth-generation implementations. However,
until recently, the deployments did not extend beyond SFA—limiting their scope and
interest to Gartner analysts.

Another trend worth noting is the rise of Customer Success as a discipline within
companies. More and more companies establish Customer Success teams as separate
from the traditional Sales team and task them with managing existing customer
relations. This trend fuels demand for additional capabilities for more holistic
understanding of the customer health, which is a limitation for many existing vendors
in the space. As a result, a growing number of new entrants enter the market, while
existing vendors add capabilities in this area to their suites. In 2017, artificial
intelligence and predictive analytics were identified as the newest trends in CRM

Importance of Customer Relationship Management (CRM):-

Customer relationship managements is the strongest & the most efficient approach in
maintaining and creating relationship with customers. Customers relationship
managements is not only pure business but also ideate stronger personal bonding with
in peoples. Developments of this type of bonding drives the business to new level of
success.

 A CRM system consists of a historical view and analysis of all the acquired or
to be acquired customers. This helps in reduced searching and correlating
customers and to foresee customer needs effectively and increase business.
 CRM contains each and every bit of details of a customer, hence it is very easy
for track a customer accordingly and can be used to determine which customer
can be profitable and which not.
 In CRM system, customers are grouped according to different aspects
according to the type of business they do or according to physical location and
are allocated to different customer managers often called as account managers.
This helps in focusing and concentrating on each and every customer
separately.
 A CRM system is not only used to deal with the existing customers but is also
useful in acquiring new customers. The process first starts with identifying a

43
 customer and maintaining all the corresponding details into the CRM system
which is also called an ‘Opportunity of Business’. The Sales and Field
representatives then try getting business out of these customers by
sophistically following up with them and converting them into a winning deal.
All this is very easily and efficiently done by an integrated CRM system.
 The strongest aspect of Customer Relationship Management is that it is very
cost-effective. The advantage of decently implemented CRM system is that
there is very less need of paper and manual work which requires lesser staff to
manage and lesser resources to deal with. The technologies used in
implementing a CRM system are also very cheap and smooth as compared to
the traditional way of business.
 All the details in CRM system is kept centralized which is available anytime
on fingertips. This reduces the process time and increases productivity.
 Efficiently dealing with all the customers and providing them what they
actually need increases the customer satisfaction. This increases the chance of
getting more business which ultimately enhances turnover and profit.
 If the customer is satisfied they will always be loyal to you and will remain in
business forever resulting in increasing customer base and ultimately
enhancing net growth of business.

Features of customer relationship managements:-

Customer relationship managements is a strategy which is customized by an

organizations to manage and administrate its customers and vendors in an efficient
manner for achieving excellence in business. It is primarily entangled with following
features.

1) Customers Needs:- An organization can never assume what actually a

customer needs. Hence it is extremely important to interview a customer
about all the likes and dislikes so that the actual needs can be ascertained
and prioritized. Without modulating the actual needs it is arduous to serve
the customers effectively and maintain a long – term deal.

2) Customers response:- customer response is the reaction by the

organization to the queries and activities of the customers . dealing with
these queries intelligently is very important as small misunderstandings

44
 could convey unlike perceptions . success totally depends on the
understanding and interpreting these queries and then working out to
provide the best solution .

3) Customer satisfaction:- customer satisfaction is the measure of the needs

and responses are collaborated and delivered to excel customers
expectation . In today competitive business market place customer
satisfaction is an important performance exponent and basic differentiators
of business strategies.

4) Customer loyalty:- customer loyalty is the tendency of the customer to

remain in business with a particular supplier and buy the products
regularly . this is usually seen when a customer is very much satisfied by
the supplier and re-buying a particulars product or brand over time by that
supplier. To continue the customers loyalty the most important aspect an
organizations should focus on his customer satisfaction.

5) Customer retention:- customer retention is a strategic process to keep or

retain the existing customers and not letting them to diverge or defect to
other suppliers or organization for business. Usually a loyal customer is
tended towards sticking to a particular brand or products as far as his basis
needs continue to be properly fulfilled. He does not opt for taking a risk in
going for a new products.

45
46
 CHAPTER-4

RESEARCH
METHODOLOGY

47
48
 RESEARCH METHODOLOGY
Definition of Research:-

Research is a careful and detailed study into a specific problem, concern, or issue
using the scientific method. It's the adult form of the science fair projects back in
elementary school, where you try and learn something by performing an experiment.
This is best accomplished by turning the issue into a question, with the intent of the
research to answer the question.

OBJECTIVES OF THE STUDY

The present study of the Customers Relationship Management of the AUTOMOBILE

INDUSTRY OF BIKES around the following broad objectives:

(i) To study the evolution and growth of the AUTOMOBILE INDUSTRY OF

BIKES Limited in the context of the automobile revolution.
(ii) To study the satisfaction level among the customers of the automobile
industry of bikes limited and the methods followed by it in this regard.
(iii) To study the relationships and the contribution of the AUTOMOBILE
INDUSTRY OF BIKES within its customers.

SCOPE OF THE STUDY

 The project involves the study of the segmentation, positioning and relationships
of AUTOMOBILE INDUSTRY OF BIKES with the customers in the market and
what they think about it.

 It includes carrying out a survey among customers & the industry people as well
as the retailers. It also involves the devising of repositioning of the existing brand
by some modifications; advertisement should be so made that the targeted
segment comes to know what the car is. How is it better from others? So, that in
near future this car becomes a grand success. Information regarding the market

49
 share, cost factors, promotional strategies and relationships of the customers etc
was collected from primary data sources.
RESEARCH DESIGN:-

A research design is the "blue print" of the study. The design of a study defines the
study type (descriptive, co relational, semi-experimental, experimental, review, meta-
analytic) and sub-type(descriptive-longitudinal casestudy), research
question, hypotheses, independent and dependent variables, experimental design, and,
if applicable, data collection methods and a statistical analysis plan. Research design
is the framework that has been created to seek answers to research questions
Research Design is the framework or plan for a study that is used as a guide in
collecting and analyzing the data. It is blueprint that is followed in completing a study.
In other words, it is the framework of the project that stipulates what information is to
be collected from which sources by what procedures.

Designing is preliminary step in every activity. It provides a picture for the whole
before starting of the work.
I have used Descriptrive research design in my project.

DATA COLLECTION

In this project both primary data as well as secondary data are used.

 Primary Data

The primary data will be collected with the help of a structured

interview/questionnaire. These methods will help to analyze the insights of the
dealers, the company officials, competitors and the most important of all the
customers so that a reliable and a valid study can be obtained within a limited time
frame and cost.

 Secondary Data

The secondary data will be collected mainly from an intensive research on the World
Wide Web Portals. Also this data would be collected from the study of journals and
periodicals such as The Economic Times, The Mint, Government Statistical Surveys
and Export statistics.

50
 METHODOLOGY ADOPTED :-

Research methodology may be understood as all those methods/techniques that are

used for conduction of research. Thus it refers to the methods the researchers use in
performing research operations. In other words, all those methods, which are used by
the researchers during the course of studying his research problem, are termed as
research methods. Since the object of research is to arrive at a solution for a given
problem, the available data and the unknown aspects of the problem have to be related
to each other to make a solution possible.

SAMPLING UNIT

The research instrument used was of structural questionnaire. It was formulated after
discussion.

1. Sampling Unit: The unit constituted the people using AUTOMOBILE

INDUSTRY OF BIKES

2. Sample Size: The size consists of 50.

3. Sample Procedure: Random sampling.

Sample size:
Regions of Faridabad were covered for the study. I took 50 samples. They were
selected by random sampling method because in this case systematic sampling is not
possible since a person cannot say whether a person is using AUTOMOBILE
INDUSTRY OF BIKES

51
LIMITATIONS OF RESEARCH :-

Due to the following unavoidable and uncontrollable factors the results might not be
accurate. Some of the problems might face while conducting the survey are as
follows:

1. Certain open-ended questions have been put in the questionnaire to give

respondents freedom to express their perception.

2. Time and cost constraints were also there

3. Chances of some biasness couldn’t be eliminated.

4. A sample size of 50 has been used due to time limitations.

5. The data has been collected from Faridabad and there the perception of
the people from the smaller towns could not be judged

52
 CHAPTER-5

DATA ANALYSIS AND

INTERPRETATION

53
54
Que-1 Which motor cycle would you prefer to buy?

Response Percentage No . of persons

HERO 40% 20
YAMAHA 25% 12
TVS 10% 4
BAJAJ 25% 13
TOTAL 100% 50

Chart Title
45
40
35
30
25
20
15
10
5
0
1
hero ya maha tvs bajaj

INTEREPRETATION:-

This graph shows that the 50 consumers will mostly buy the hero
40% consumers buying the motors in Yamaha 25% will buying the tvs and 10%
consumers are buying the motors in Bajaj 25%.

Que-2 Does Industry of bikes maintains consistency in its services ?

55
 Views No. of Percentage
persons
Yes 43 86%
No 7 14%
Total 50 100%

No; 14.00%

Yes ; 86.00%

INTERPRETATION:-

This question shows whether Industry of bikes maintains consistency in its services.
86% of the persons surveyed agreed that Industry of bikes
maintains consistency in its services while 14% disagreed.

Que-3 Are you satisfied with the prices charged by Industry of bikes?

56
 Views No. of Percentage
persons
Very satisfied 9 18%
Satisfied 35 70%
Not satisfied 6 12%
Total 50 100%

Not satisfied; 12.00%

Very satisfied; 18.00%

Satisfied; 70.00%

INTERPRETATION:-

This question deals with the pricing of Industry of bikes

products.
Out of 100% persons surveyed, 70% are satisfied with the prices charged, 18% are
very satisfied and 12% are not satisfied.

Que-4 Do you find the promotional measures adopted by Industry of bikes

are effective?

57
 Views No. of persons Percentage

Very effective 7 14
Effective 27 54
Not effective 16 32
Total 50 100

No. of persons

Very effective; 14.00%

Not effective; 32.00%

Effective; 54.00%

INTERPRETATION:-

This question deals with whether the promotional measures adopted by Industry of
bikes are effective or not.
Out of 50 persons surveyed 7 persons find it very effective, 27 persons found it
effective while 16 persons doesn’t find it effective.

Que-5 What recommendations do you wish to suggest to Industry of bikes ?

58
 Recommendations No. of persons

Include more variety 32

Reduce prices 6
Better advertising and promotion 5
Improve quality 7

35
30
25
20
15 32
10
5 6 7
5
0

No. of persons

INTERPRETATION:-

This question gives out the suggestions to increase its sales.

Out of 50 persons surveyed 32 persons suggested that Industry of bikes
must include more variety, 6 persons suggested to reduce prices, 5 suggested to adopt
better advertising and promotion measures and 7 suggested to improve quality.

Que-6 How would you describe your visiting experience at Industry of bikes ?

59
Views No. of person
Excellent 4
Very good 17
Good 25
Poor 4

Total 50

25

20

15
25

10 17

5
4 4

0
Excellent Very good Good Poor
No. of person

INTERPRETATION:-

This question describes the visiting experience at Industry of bikes

Out of 50 persons surveyed 4 describe their visiting experience as excellent, 17 as
very good, 25 as good and 4 as poor.

Que-7 Which are the products of the company that are favorite among the
customers? Please give the reasons as you think.

60
Views No. of persons Percentage
Quality based 27 55%
Economics / cheap 15 30%
Branded 3 6%
Do not know / cannot say 5 9%
Total 50 100%

60%

50%

40%

30%
55%

20%
30%
10%

6% 9%
0%
Quality based Economics / cheap Branded Do not know / can not say

INTERPRETATION:-

This question describe the customer to choose a product for industry of bikes
Out of 100% customer if 55% of customer to choose a quality based product in
motors company then the 30% of customer to choose a product for the economics &
the cheap rate then the 6% customer have to choose a brand for the product then the
9% of customer can not for say in the motors company.

61
Que-8 Is the Dealer provided you the back up facility for Industry of bikes
service to your vehicle?

S.NO RESPONSE NO. OF PERCENTAGE

RESPONDENTS
1 YES 48 95%
2 NO 2 5%
TOTAL 50 100%

Sales

4.88%

YES
NO

95.12%

INTERPRETATION:-

When asked for this question to the people out of 48 people 95% know about the
service back up facility provided by the dealer to them. They were aware of the
services. The rest 5% were not aware to the services or they were not bothered for the
services provided to them for them the purchase factor mattered and the service factor
could be handled by the other factor. This was due to ignorance of the customers.

62
Que-9 Do you change your company of bikes provider?

S.NO RESPONSES NO. OF PERCENTAGE

RESPONDENTS
1 Yes 29 58.53%
2 No. 21 41.47%
TOTAL 50 100%

INTERPRETATION:-
The result shows that 58.53% people want to change the service provider while
41.47% people wanted to slick to the same service provider. Constant lack of
reminder, providing the service just for name, sake to dill that they are providing
services, lack of spare parts, expensive spare parts, lack of good service employee.

63
Que.10 From which source you get to know about Industry of bikes?

Chances Percentage Number of persons

T.V 25% 12
Radio 25% 13
Newspaper 30% 15
Magazines 20% 10
Total 100 50

Magazines; 20.00% T.V; 25.00%

Newspaper; 30.00%
Radio; 25.00%

INTERPRETATION:
Maximum number of people get to know about motors in newspaper 30%, from radio &
television the ratio is 25% each, the lowest percent of the share is being used by magazine
20%.

64
 CHAPTER-6

CONCLUSION &
SUGGESTION

65
66
CONCLUSION

 Hero MotoCorp Ltd. is expanding its annual capacity from 7.65 Mn units to
nearly 10 Mn units by ±Y18. Given the capacity expansion and improving
industry prospects, we expect Hero to report a 3-year revenue CAGR of 10.1%
to Rs 36,751 crore by ±Y18[E].
 Hero MotoCorp Ltd. has been able to maintain a leadership position in the
two-wheeler segment despite sT´ competition on the back of higher
warranties, established distribution strength and increasing spends on R&D.
 Hero MotoCorp Ltd. need to focus on premium segment where Bajaj ²VS,
TVS are doing great in that area where Hero is not having much market share.
 The companies should also target the market for sports bikes.
 The HERO company have a good distribution network of bikes can grow at
a rapid rate.
 Results depicts that lower segment motor bikes (100 CC) are most preferred
followed by middle segment (150 CC) and high end motor bikes (225 CC). It
shows that light motor bikes are the preference of consumers in Haryana.
 TVS Motor Company Ltd., identifies the areas in which the companies are
better and the areas in which the companies are weak. The result will help the
companies to improve the financial position for future development.

67
SUGGESTIONS

1) The most important media for consumer durables is television. So, they should go
for television advertisements rather going for newspaper, the television
advertisements influences more on the people. They should spend some
expenditure for T.V. advertisements.

2) Being the price of the industry of bikes is high they should try to reduce prices
because there are many other competitors which can be selling at lower cost. If
not, the sales may decrease.

3) Company should give some incentives to the dealers for promoting the products of
industry of bike. They should not neglect dealers. They should select good dealers,
which they can give customer satisfaction.

4) More features should be added to the industry of bikes according to the needs of
the customer, because their competitors are coming with new models. According
to the competitors these people should change the models or change the
technology.
5) Should keep more economical product so that middle class people can purchase.
6) Should use more effective promotional techniques so as to increase their sale.
7) Should make some changes in infrastructure so it may attract more customers.
8) Should make some changes in customer relationship policy so more customers get
satisfied.
9) Should we keep the best variety of motors then the customer can be purchased it.
10) Should be the best quality of product can be advertise by the T.V or newspaper.

68
CHAPTER -7

ANNEXURE
 Bibliography
 Questionnaires

69
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BIBLIOGRAPY

Websites:

 www.tvsmotors.com

 www.bajaj.com

 www.history of bikes.com

 www.hero motor cop.com

BOOKS:-

C.R. Kothari : Research Methodology

S.A. Chunawalla : Essentials of Marketing Research
S.A. Sherlerkar : Marketing Management
James F. Engel & Roger : Consumer Behaviour
Leon. G. Schiff man : Leslie Lazar Kaunk-Consumer Behaviour

71
 Questionnaire

Question 1. Does Industry of bikes maintain consistency in its services?

a) Yes
b) No

Question 2. Are you satisfied with the prices charged by Industry of bikes?
a) Very satisfied
b) Satisfied
c) Not satisfied

Question 3. Do you find the promotional measures adopted by Industry of bikes

are effective?
a) Very effective
b) Effective
c) Not effective

Question 4: Things that you looked while purchasing a car?

a) Fuel efficiency
b) Low cost
c) Looks
d) Low price

Question 5. What recommendations do you wish to suggest to Industry of bikes?

a) Recommendations
b) Include more variety
c) Reduces price
d) Better adv.

72
Question 6. How would you describe your visiting experience at Industry of
bikes?
a) Excellent
b) Very good
c) Good
d). Poor

Question 7: How did you get attracted to AUTOMOBILE INDUSTRY OF

BIKES” Car that you are having at present?
a) Looks

b) Fuel economy

c) Least physical efforts

d) Reliability

e) High price

f) Low Maintenance cost

Question 8: Which are the products of the company that are favorite among the
customers? Please give the reasons as you think.
a) Quality based

b) Do not know /can not say

c) Branded

d) Economical/ Cheap

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74