A STUDY ON

“CUSTOMER ASSOCIATION MANAGEMENT”

WITH SPECIAL REFERENCE TO
HYUNDAI
(HYDERABAD)
Submitted in Partial Fulfilment of the Award of the Degree
Of
MASTER OF BUSINESS ADMINISTRATION
Submitted By
----------------------------------
M.B.A
H.T NO: 117315672038

Under The Guidance Of

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 CONTENTS

PARTICULARS PAGE: NO
CHAPTERS

1 INTRODUCTION 1-26

 NEED & IMPORTANCE OF THE STUDY

 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 METHODOLOGY OF THE STUDY
 LIMITATIONS OF THE STUDY

2 27-37
LITERATURE REVIEW

38-42
COMPANY PROFILE
3

INDUSTRY PROFILE

DATA ANALYSIS &INTERPREATION 43-51

4

5 CONCLUSIONS FINDINGS, SUGGESTIONS 52-53

BIBLIOGRAPHY

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 ABSTRACT
Customer relationship management is perhaps the most important concept of modern
marketing. Until recently CRM has been defined narrowly as a customer data management
activity. By this definition, it involves managing detailed information about individual
customers and carefully managing customer “touch points” in order to maximize customer
loyalty

More recently, however, customer relationship management has taken on a broader

meaning. In this broader sense, customer relationship management is the overall process of
building and maintaining profitable customer relationships by delivering superior customer
value and satisfaction. It deals with all aspects of acquiring, keeping, and growing customers.

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 CHAPTER-1

INTRODUCTION

4
 INTRODUCTION
Customer association management is a broad approach for
creating, maintaining and expanding customer relationships. CRM is the
business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization’s current and potential
customers. At the heart of a perfect strategy is the creation of mutual
value for all parties involved in the business process. It is about creating
a sustainable competitive advantage by being the best at understanding,
communicating, and delivering and developing existing customer
relationships in addition to creating and keeping new customers. So the
concept of product life cycle is giving way to the concept of customer
life cycle focusing on the development of products and services that
anticipate the future need of the existing customers and creating
additional services that extend existing customer relationships beyond
transaction The intense competition which banks have come to face,
both as a consequence of growth of non-banking financial institutions as
well as securitization has created the fear of high risk and has increased
the attention towards Customer Relationship Management.

Customer relationship management (CRM) is a multifaceted process,

mediated by a set of information technologies that focuses on creating
two-way exchanges with customers so that firms have an intimate
knowledge of their needs, wants, and buying patterns. In this way, CRM
is intended to help companies understand, as well as anticipate, the
needs of current and potential customers.

The project is a detail study of Process Involved in Planning of

Customer Relationship Management and Need for Customer
Relationship Management.

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 OBJECTIVES OF THE STUDY
1. To find the degree of TQM implemented in the organization.

2. To study the level of commitment of employees toward their work.

3. To find out factor influencing the commitment.

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 SCOPE OF THE STUDY

Total Quality Management (TQM) methodology can help organizations to achieve business

excellence. This methodology is also useful for the hospitality industry; almost all hotels focus on

quality management to improve their business by enhancing customer satisfaction, competitive

advantage and retaining guest loyalty. TQM is teamwork; every functional department must work

cohesively together and support each other in order to achieve business excellence. Different

departments in a hotel have different roles in delivering the service to hotel guests. This dissertation

is aimed to find out how the Engineering Department, a back-of-house department in a hotel, supports

the hotel goal of quality management together with the factors and practices that could impact the

department both positively and negatively to achieve the quality.

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 RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem in a systematic manner.
It may understand as a science of studying how the research is done significantly. The
methodology may differ from problem to problem, yet the basic approach towards the
research remains the same. The sequence or steps followed have been explained as under:

UNIVERSE AND SURVAY POPULATION

The universe is the employee working at mill. I have selected 100 employees 40 FROM
THE STAFF, 60 FROM THE WORKER for the survey.

RESEARCH DESIGN

This research is of EXPLORATARY RESEARCH DESIGN .I have used the

questionnaire method for collecting the data.

ANALYSIS PATTERN

DATA COLLECTION:
This data is primary data, which I have been collected with the help of

questionnaire. I have prepared a questionnaire on the basis of the factors

responsible for employee’s commitment in the organization.

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 LIMITATIONS

 The project is only limited to the study of CRM of HYUNDAI.

 CRM of other banks are not disclosed.
 CRM strategies of banks are not compared with each other.
 Time, length, and depth of the study are limited as per the requirements
of ____________________

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 CHAPTER-2

REVIEW OF LITERATURE

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WHAT IS CUSTOMER RELATONSHIP
MANAGEMENT?

CRM, or Customer Relationship Management, is a company-wide

business strategy designed to reduce costs and increase profitability
by solidifying customer loyalty. True CRM brings together
information from all data sources within an organization (and
where appropriate, from outside the organization) to give one,
holistic view of each customer in real time. This allows customer
facing employees in such areas as sales, customer support, and
marketing to make quick yet informed decisions on everything
from cross-selling and up-selling opportunities to target marketing
strategies to competitive positioning tactics.

Once thought of as a type of software, CRM has evolved into a

customer-centric philosophy that must permeate an entire
organization. There are three key elements to a successful CRM
initiative: people, process, and technology. The people throughout a
company-from the CEO to each and every customer service rep-
need to buy in to and support CRM. A company's business
processes must be reengineered to bolster its CRM initiative, often
from the view of, how can this process better serve the customer?
Firms must select the right technology to drive these improved
processes, provide the best data to the employees, and be easy
enough to operate that users won't balk. If one of these three
foundations is not sound, the entire CRM structure will crumble.

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It's a strategy used to learn more about customers' needs and
behaviors in order to develop stronger relationships with them.
After all, good customer relationships are at the heart of business
success. There are many technological

A component to CRM, but thinking about CRM in primarily

technological terms is a mistake. The more useful way to think
about CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends. If customer
relationships are the heart of business success, then CRM is the
valve the pumps a company's life blood. As such, CRM is best
suited to help businesses use people, processes, and technology to
gain insight into the behaviour and value of customers.

Defining CRM

Customer Relationship Marketing is a practice that encompasses all

marketing activities directed toward establishing, developing, and
maintaining successful customer relationships. The focus of
relationship marketing is on developing long-term relationships and
improving corporate performance through customer loyalty and
customer retention.

Customer Relationship Management (CRM) as the name suggests,

the primary focal point is placed on the customer. The key
objective is to increase customer value over time by increasing
customer loyalty. If a company develops better customer
relationships, it also improves business processes as well as its
profits. In general, CRM is a more efficient automated method used

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 to connect and improve all areas of business to focus on creating
strong customer relationships. All forces are coupled together to
save, improve, and acquire greater business to customer
relationships. The most common areas of business that are
positively affected include marketing, sales, and customer service
strategies.

CRM helps create time efficiency and savings on both sides of the
business spectrum. Through correct implementation and use of
CRM solutions, companies gain a better understanding of their
strongest and weakest areas and how they can improve upon these.
Therefore, customers gain better products and services from their
businesses of choice. In order to achieve better insight on CRM, it is essential
to consider all of its components.

CRM- Meaning

Customer relationship management (CRM) is a business strategy that spans

your entire organization from front office to back-office. It is a commitment you
make to put customers at the heart of your enterprise. The right CRM strategy
and solutions can help you securely, reliably and consistently delight your
customers every time they interact with your business by empowering them
with anytime, anywhere, and any channel access to accurate information and
more personalized service. Reach more customers more effectively, increase
customer retention and boost customer loyalty by leveraging opportunities to
up-sell and cross-sell and driving repeat business at lower cost Drive
improvements in business performance by providing your customers with the
ability to access more information through self-service and assisted-service
capabilities when it is convenient for them. Enable virtualization in your
enterprise as more of your people and resources extend beyond your offices and
around the world Balance sophisticated functionality with rapid implementation
and effective support for a faster return on your CRM investment. Today’s
customers face a growing range of choices in the products and services they can

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buy. They base their choices on their perception of quality, value, and service.
Each Consumer has a specific behaviour. But buying habits are sometimes
difficult to understand. Therefore companies always want to gain some insight
about consumer behaviour and habits in order to better control this behaviour.
Having an impact on consumer behaviour means being able to change
consumer’s perception of the product or service, to establish a relation between
the company and its clients.

THE EMERGENCE OF CRM :

The developing customer relationship management has historical antecedents

going back into the pre-industrial era. In the recent years however several
factors have contributed to the rapid development and evolution of CRM.
These include the growing de-intermediation process in many industries due to
the advent of sophisticated computer and telecommunication technologies that
allow producers to directly interact with the end customers.

The recent success of On-line banking, Charles Schwab and Merryll Lynch’s
On-line investment programs, direct selling of books, automobiles, insurance
etc. on the internet all atleast to the growing consumer interest in maintaining
direct relationship with marketers. The de-intermediation process and
consequent prevalence of Customer Relationship Management is also due to
the growth of the service economy.Another force driving the adoption of
customer relationship management has been the total quality movement. When
companies embraced Total Quality Movement philosophy to improve quality
and reduce cost, it become necessary to involve suppliers and customers in
implementing the program at all levels of the value chain. This needed close
working relationships with customers, suppliers and other members of the
marketing infrastructure. Other programs such as Just in Time and Material
resource planning also made the use of interdependent relationships between
suppliers and customers. Similarly in the current era of hype-competition,
marketers are forced to be more concerned with customer retention loyalty. As
several studies indicated, retaining customer is less expensive and perhaps a
more sustainable competitive advantage than acquiring new ones. Marketers

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are realizing that it costs less to retain customers than to compete for new ones.
Today many large internationally oriented companies are trying to become
global by integrating their worldwide operation. To achieve this they are
seeking cooperative and collaborative solutions for global operations from
their vendors instead of merely engaging in transactional activities with them.
Such customers need make it imperative for marketers interested in the
business of companies who are global to adopt Customer relationship
management programs, particularly global account management programs.
Global account management is conceptually similar to national account
management programs except that they have to be global in scope and this
they are more complex. Managing customer relationship around the world
calls for external and internal partnering activities, including partnering across
firms worldwide organizations.

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 CHAPTER-3

COMPANY PROFILE &

INDUSTRY PROFILE

16
 COMPANY PROFILE

HISTORY:

The Company is an authorized Dealer of Hyundai Motors India Limited

(HMIL) for sale of its entire range of motor vehicles. It is also authorized to
service & repair of all Hyundai cars and also deals in spare parts of Hyundai
cars.

Lakshmi Hyundai was established in the year 1998 in Himayathnagar

with the launch of Hyundai’s first car in India- the evergreen SANTRO. The
entire business is managed under the able leadership and guidance of the
managing Director Shri K.Rama Mohana Rao.

Soon after the Himayathnagar showroom, came up the ‘state-of-art

service facilities at Kukatpally, Banjarahills and L.B.Nagar. These service centers
are well equipped to cater to the needs of valued customers. The management
left no stone unturned to review, research and implement the latest of
technologies and methodologies to improve on the sales, service on the
customer satisfaction. Continuous up gradation of the facilities at the sales and
service outlets and adding to the service agenda each time, add been sales
graph go high by the yea

AWARDS:

The awards received for “ Best in sales ” in south region, “Best in finance ”,
“Top performer ” in 2005 and their technicians being awarded with a Gold
Medal for standing No.1 in the world at World skill Olympics held at Korea-
stand testimony to the recognition that received at the global level.

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 According to the popular belief, a customer walking into LAKSHMI HYUNDAI
is treated like an asset. His/her needs are assessed in the first stage

and the customer is educated subsequently about the product line, service
range, allied services, etc., ample information and time is given to the
prospective buyer to make up his/her mind on which car to buy.

Totally focused customer centric approach, unparalleled service motto, top-

end facilities, bouquet of allied services, solid after sales backup, quality
assurance, unconditional warranty promise and desire to excel through service
are some of the threads which blend in effectively to give birth to the fabric
called LAKSHMI HYUNDAI LAKSHMI HYUNDAI’s success is just beginning and
more to expect spectacular chapters in the preamble “Winning Edges”.

LAKSHMI HYUNDAI MAN POWER:

Department Own Contract Total

Sales 57 0 57

Service 126 49 175

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 Spaces 15 0 15

Finance & 98 0 98
HR/Administration

Total 296 49 345

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RECRUITMENT PROCESS AT LAKSHMI HYUNDAI:

The recruitment process involves both internal and external methods. Internal
methods namely are employee referrals, promotions, inter company
transfers.

Employee referrals;

This is the most common method of recruitment used by the organization. Last
year the organization recruited 16 employees by employee referrals.

Promotions

Posts falling vacant due to be filled will be notified within the

division/office, giving educational qualifications and experience laid down for
the post and the extent to which these will be relaxed for promotion and
inviting

applications from eligible employees in lower group, who have rendered the
requisite qualifying service and who have requisite higher post.

External methods of recruitment followed by the organization are employment

exchange, paper advertisements and campus recruitment. .

Employment Exchange: All vacancies are to be notified to the Local

Employment Exchange. If employment exchanges are unable to sponsor the
suitable candidates with in the prescribed time limits, the vacancies may be

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advertised in the press on a local/regional advertisement the vacancies may be
advertised on India Basis. A minimum of two weeks notice is to given to the
Local Employment Exchange for sponsoring suitable candidates.

Paper advertisements:

Of the external methods this method is mostly adopted by the organization.

This method of recruitment involves advertising the requirements of personnel
in two of the leading newspapers one being in English language and other
being in regional language. For recruitments in Hyderabad, Eenadu and Deccan

Chronicle are the two leading newspapers that the requirement of personnel is
advertised.

SELECTION PROCESS AT LAKSHMI HYUNDAI:

After the recruitment process next step is the selection process in

employing a suitable candidate into the organization. At Hindustan Aeronautics
Limited the selection process mainly includes test/interviews. If a candidate

passes through the different rounds of interviews/test then he is employed into

the organization. The Personnel Department of each division or the corporate
office will screen the applications received and categorize them to those that

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satisfy prescribed minimum educational qualification and experience and those
do not .

Personal Manager Interview:

This is the first round of interview for the candidate. The Personal
manager checks the knowledge of the candidate in the applied field along with
his positive attitude, communication skills and so on. On personal
dissatisfaction the manager can call the candidate for another round of
interview. He prepares an evaluation report on the candidates' performance in
the interview.

Board Directors Interview:

After the personal manager interview, the next in line is the Board
Directors Interview. There are 4 directors who take the seat of interviewer.
Questions about family background, health details, academic performance and
activities, likes and dislikes, attitudes and capabilities etc. are all questioned.
The interview conducted by the Board directors can take any shape from stress
interview to formal or informal interview depending on the kind of department
they are being recruited for. All the directors prepare an evaluation report
individually on the candidate’s performance in relation to personality,
intelligence, attitudes, skills and knowledge and so on. .

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Verification of Date of Birth, Character and Antecedents

The secondary school certificate is the accepted document required for

verification of date of birth. However, if this document is not available, the
candidate should produce a RESUME. In that he/she mention all study details
of them.

APPOINTMENT OF SELECTED CANIDIDATES

Candidates who are selected for appointment to post will be issued

with a letter proposing to offer the post or offering the post. If they accept
appointment offer they are to be reply in the form.

SALES TEAM PERFORMANCE BONUS POINTS

Universal Factors Sub-Factors No. of Points Total points

Job Knowledge & Product Information 100

Judgment

Communication Skills 75

GDMS Up gradation 100

Accessories Selling Skills 25 350

Finance Dealing Skills 50

Sales Personality Presentation Skills 50

Confidence Level 50

Voice & Body Culture 100

300
Appearance 50

Selling Skills 50

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 Code Of Conduct Time Management 50

Obeying Orders 100

Alertness 75
350
Company Dress 50

Attendance Record 75

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai

Motor Company (HMC), South Korea and is the largest passenger car exporter
and the second largest car manufacturer in India. HMIL presently markets 6
models of passenger cars across segments. The A2 segment includes the
Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the
A5 segment includes the Sonata Transform and the SUV segment includes the
Santa Fe.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai

boasts of the most advanced production, quality and testing capabilities in the
country. To cater to rising demand, HMIL commissioned its second plant in
February 2008, which produces an additional 300,000 units per annum, raising
HMIL’s total production capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customers with

cutting-edge global technology, HMIL has set up a modern multi-million dollar
research and development facility in the cyber city of Hyderabad. It aims to
become a centre of excellence for automobile engineering and ensure quick
turnaround time to changing consumer needs.

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As HMC’s global export hub for compact cars, HMIL is the first automotive
company in India to achieve the export of 10 lakh cars in just over a decade.
HMIL currently exports cars to more than 110 countries across EU, Africa,
Middle East, Latin America, Asia and Australia. It has been the number one
exporter of passenger car of the country for the sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 315 strong
dealer network and 640 strong service points across India, which will see
further expansion in 2010.

Mr. Han Woo Park joined Hyundai Motor Company in Seoul, South Korea, in
1982 in the finance department and ever since he has been involved with
costing, auditing and the financial operations of the company.

He joined Hyundai Motor India Limited in 2003 as the Chief Financial Officer
and since then he has played a pivotal role in HMIL as he was involved in all
aspects of the company in his capacity as a CFO.

25
Mr. Park has a vast experience and understanding of Hyundai Motor India Ltd
and the Indian culture and has successfully led his team for the last seven
years. Mr. Park holds a degree in Business Administration from the University of
Dankook in Seoul, South Korea.

Prior to his becoming the Managing Director of HMIL he held the position of
CFO and Senior Executive Director. Mr Park lives in Chennai with his wife. He
has two children, a son and a daughter. The son is studying at University of
Texas, Austin and the daughter is studying at SUNY Buffalo. Mr Park was born in
South Korea on January 29, 1958.

Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary of Hyundai

Motor Company, South Korea, which has set up the R&D Centre in Hyderabad.
HMIE is a centre with one of the most advanced research and development
facilities which focuses on state of the art product and design engineering and
rigorous quality enhancement. The new R&D Centre at

Hyderabad in India is Hyundai Motor Company’s fourth overseas R&D centre.

Set up with an investment of Rs. 184 crores, the new 200,000 square-foot
facility R&D Centre, is aimed at further accelerating local content development
and enable Hyundai to respond even more quickly to changing customer needs
across the world. The R&D Centre will further facilitate the development of
India as Hyundai’s global hub for manufacturing and engineering of small cars.
The new R&D Centre in Hyderabad will support all back-end operations like

26
computer aided engineering (CAE), computer aided design (CAD) and help the
R & D work taking place across Hyundai’s car line-up. The R&D Centre will help
in developing vehicles which includes their styling, design engineering and
vehicle test & evaluation. The R&D Centre will play a pivotal role for cars
manufactured in Indiainorder to satisfy the specific needs of the Indian
customers. Hyundai Motor Company’s other overseas R&D centres are located
in the United States, Germany, Japan & Korea.

Management Philosophy With the spirit of creative challenge, we will strive

to create a more affluent lifestyle for humanity, and contribute to the harmony
and co-prosperity with shareholders, customers, employees and other
stakeholders in the automobile industry.

The spirit of creative challenge has been a driving force in leading HMC to
where it is today.
It is the permanent key factor for HMC to actively respond to change in the
management system and seek creative and self–innovative system. With the
spirit of creative challenge, we create profits, the primary objective of a private
enterprise. Furthermore, we take responsibility for the environment and
society we belong to, and offer sustainable mobility in order to implement our
corporate philosophy and provide benefits to all stakeholders including
shareholders, customers, executives, employees, suppliers, and communities.
Vision We announced "Innovation for Customers" as our mid–to long–term
vision with

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five core strategies: global orientation, respect for human values, customer
satisfaction, technology innovation, and cultural creation. We desire to create
an automobile culture of putting customer first via developing human–
centered and environment–friendly technological

innovation. Management Policy

Based on a respect for human dignity, we make efforts to meet the

expectations of all stakeholders including customers and business partners by
building a constructive relationship amongst management, labor, executives
and employees. Also, we focus on communicating our corporate values both
internally and externally, and gaining confidence from all stakeholders.

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Mid-and Long-term Strategies We developed five mid–and long–term
strategies: global management, higher brand values, business innovation,
environmental management, and strengthening product competitiveness.
Especially, we selected environmental management as one of our strategies to
meet the needs of our stakeholders and the society we belong to. We also
intend to promote sustainability development and preservation of the
environment.

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MOST LIKED SMALL CAR IS SANTROXING

30
31
32
33
New Arrivals

EON

Santro Xing

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

i10

i20

Accent

Fluidic Verna

The All New Sonata

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 AUTOMOBILE INDUSTRY IN INDIA

The automobile industry in India is the ninth largest in the world with an annual
production of over 2.3 million units in 2008 in 2009; India emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as TOYOTA Motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international operations.
India's robust economic growth led to the further expansion of its domestic automobile
market which attracted significant India-specific investment by multinational automobile
manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000
units.

bryonic automotive industry emerged in India in the 1940s. Following the independence, in
1947, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the
growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj
which hampered the Indian private sector. After 1970, the automotive industry started to
grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars
were still a major luxury. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars.

Following the economic liberalization in 1991 and the gradual weakening of the license raj, a
number of Indian and multi-national car companies launched operations. Since then,

36
automotive component and automobile manufacturing growth has accelerated to meet
domestic and export demands.

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an

internal –combustion engine (or, less often by an electric engine). The automobile was the
reply to the 19th –century reams of self-propelling the horse-drawn bikeriage. Similarly, the
invention of the motorcycle created the self –propelling bicycle. The first commercial design
was three-wheeler built by Edward Butler in Great Britain in 1884. This employed a
horizontal single-cylinder gasoline engine mounted between two steer able front wheels and
connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles
or pedal cycles by adding small, centrally mounted spark ignition engine engines. There was
then felt the need for reliable constructions. This led to road trial tests and competition
between manufacturers. Tourist Trophy (TT) races were held on the Isle of main in 1907 as
reliability or endurance races. Such were the proving ground for many new ideas from early
two-stroke-cycle designs to supercharged multivalent engines mounted on aerodynamic,
bikebon fiber reinforced bodywork.

The invention of two wheelers is a much-debated issue. “Who invented the first
motorcycle?” May seem like a simple question, “safety”, bicycle, i.e., bicycle with front and
rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those
bicycles in turn described from high-wheel bicycles. The high –wheelers descended from an
early type of pushbike, without pedals, propelled by the rider’s feet pushing against the
ground. These appeared around 1800, used iron banded wagon wheels, and were called
“bone-crushers”, both for their jarring ride, and their tendency to toss their riders. Gottiieb
Daimler (who credited with the building the first motorcycle in 1885, one wheel in the front
and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It
was constructed mostly of wood, the wheels were of the iron-banded wooden-spooked
wagon-type and it definitely had a “bone-crusher” chassis!

FURTHER DEVELOPMENTS:

Most of the developments during the early phase concentrated on three and four-
wheeled design since it was complex enough to get the machines running with out having to
worry about them falling over. The next notable two-wheeler though was the Hildebrand &
Wolf Mueller, patented in Munich in 1894. In 1895, the French firm of DeDion-button built

37
and engine that was to make the mass production and common use of motorcycle possible.
The first motorcycle with electric start and a fully modem electrical system; the Hence
special from the Indian Motorcycle Company astounded the industry in 1931. Before World
War 1, IMC was the largest motorcycle manufacturer in the world producing over 20000
bikes per year.

INCREASING POPULARITY:

The popularity of the vehicle grew especially after 1910, in 1916; the Indian
motorcycle company introduced the model H racer, and placed it on sale. During World War
1, all branches of the armed forces in Europe used motorcycles principally for dispatching.
After the war, it enjoyed a sport vogue until the Great Depression began in motorcycles lasted
into the late 20th century; weight the vehicle being used for high-speed touring and sport
competitions. The more sophisticated of a 125cc model. Since then, an increasing number of
powerful bikes have blazed the roads.

HISTORICAL INDUSTRY DEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in the World.
It stands next only to Japan and China in terms of the number of V produced and domestic
sales respectively. This destination was achieved due to variety of reason like restrictive
policy followed by the government of India towards the passenger bike industry, rising
demand for personal transport, inefficiency in the public transportation system etc. The
Indian two-wheelers industry made a small beginning in the early 50s when Automobile
products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.

The two –wheelers market was opened were opened to foreign competition in the
mid-80s. And the then market leaders-Escorts and Enfield – were caught unaware by the
onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the availability
of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda –then the only
producer of four stroke bikes (100cc category), gaining a top slot.

38
 The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD Kits, and later on progressed to
indigenous manufacturing.

The industry had a smooth ride in the 50s, 60s and 70s when government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth in
the 80s. The industry witnessed a steady of 14% leading to a peak volume of 1.9 mn vehicles
in 1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.

The reason for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant like increased production in 1992, due
to new entrants coupled with recession in the industry resulted in companies either reporting
losses or a fall in profits.

The two-wheelers market has had a perceptible shift from a buyers market to a sellers
market with a variety of choice, players will have compete on various fronts viz. pricing,
technology product design, productivity after sale service, marketing and distribution. In the
short term, market shares of individual manufacturers are going to be sensitive to capacity,
product acceptance, pricing and competitive pressures from other manufacturers.

As incomes grow and people grow and people feel the need to own a private means of
transport, sales of two-wheelers will rise. Penetration is expected to increase to
approximately to more than 25% by 2005.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sale is expected to increase by 20%

yoy as compared to 1% growth in the scooter market and 3% by moped sales

respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the coming
future.

39
The Asian continent is that largest user of the two-wheelers in the world. This is due to poor
road infrastructure and low per capita income, restrictive policy on bike industry. This is due
to oligopoly between top five players in the segment, compared to thirsty manufacturers in
the bike industry.

Exports

India has emerged as one of the world's largest manufacturers of small cars. According to
New York Times, India's strong engineering base and expertise in the manufacturing of low-
cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several
automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to
export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors
announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India with an annual
capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the
Indian market and for export. The company said that the plant was a part of its plan to make
India the hub for its global production business. Fiat Motors also announced that it would
source more than US$1 billion worth auto components from India.

According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter
of cars.

Indian automobile companies

Notable Indian automobile manufacturers

 Ashok Leyland
 Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster.

 Force Motors

40
  Hindustan Motors: Ambassador.

 Mahindra: Major, Xylo, Scorpio.

 Maruti Suzuki: 800, Alto, WagonR, Estilo, AStar, Ritz, Swift, Swift DZire, SX4,
Omni, Versa, Gypsy

 Premier: Sigma, Roadster, RiO.

 San Motors: Storm

 TOYOTA Motors: Nano, Indica, Indigo, Sumo, Safari, TL.Aria

Electric car companies in India

 Ajanta Group
 Mahindra

 Hero Electric REVA

 Tara International

 TOYOTA Motors

Notable Multi-national automobile manufacturers

Locally manufactured Automobiles of Multi-national Companies

 Audi: A4, A6.

 BMW: 3 Series, 5 Series.

 Chevrolet: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

 Fiat: Palio, Grande Punto, Linea.

 Ford: Ikon, Fiesta, Fusion, Endeavour, Figo

 Honda: Jazz, City, Civic, Accord.

 Hyundai: Santro, i10, Getz, i20, Accent, Verna, Hyundai , Sonata.

 Mercedes-Benz: C-Class, E-Class

41
  Mitsubishi: Lancer, Lancer Cedia.

 Nissan: Micra

 Renault: Logan

 Škoda: Fabia, Octavia, Laura.

 Toyota: Corolla, Innova, Fortuner

 Volkswagen: Jetta, Passat, Polo.

Cars sold in India as CBU (Completely Built Units)

 Audi: A8, TT, R8, Q5, Q7.

 Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,
Mulsanne.

 BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.

 Chevrolet: Captiva

 Fiat: Nuova 500.

 Honda: Civic Hybrid, CR-V.

 Hyundai: Santa Fe.

 Jaguar: XF, XJ, XK.

 Lamborghini: Gallardo, Murciélago.

 Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.

 Maybach: 57 and 62.

 Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class,

Viano.

 Mitsubishi: Pajero, Montero, Outlander.

 Nissan: Teana, X-Trail, 307Z.

42
 Porsche: 911, Boxter, Panamera, Cayman, Cayenne.

 Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.

 Škoda: Superb.

 Suzuki: Grand Vitara.

 Toyota: Camry, Land Cruiser, Land Cruiser Prado, Prius.

 Volkswagen: Beetle, Touareg.

 Volvo: S80, XC90.

43
 CHAPTER-4

DATA ANALYSIS
&
INTERPRETATION

44
 TABLE 1

1 which HYUNDAI Car do you own?

S NO PRODUCT RESPONDENTS %

1 INNOVA 60 60

2 ETIOS 20 20

3 FORTUNER 15 15

4 COROLLA 5 5

CHART 1

Interpretation:

From above it can be stated that the general satisfaction level of for HYUNDAI in twin
cities of Hyderabad and Secunderabad is 60%.

45
2. SOURCES OF AWARENESS:

The customer was enquired about the sources of awareness with regard to HYUNDAI. This
will help to know us to which sources is playing a major role in creating awareness among the
customers.

S .NO ADVERTISEMENT RESPONDENTS %

1 T.V 35 35

2 NEWSPAPERS 25 25

FRIENDS 12 12

DEALERS 28 28

CHART-2

INTERPRETATION:

Out of the responses obtained from 100 customers 28% said that they became aware of the
Friends. And through the friends 35% of the customers are aware from the T.V. And another 25% are
aware of by the NEWS PAPERS. And only 12% are aware by the DEALERS

46
3. LEVEL OF SATISFACTION:

The customer was enquired about the level of satisfaction with regard to the HYUNDAI.

S NO SATISFACTION RESPONDENTS %

1 EXCELLENT 30 65

2 GOOD 10 20

3 AVERAGE 50 10

4 POOR 10 5

CHART-3

INTERPRETATION:

Out of the responses obtained from 100 customers 65% said that they are EXCELLENT
satisfied and 20% were GOOD and 10% were AVERAGE and 5% were vehicle is poor. This data is
obtained by most of members were satisfied by HYUNDAI.

47
4. What are the voluble attributes you normally look while purchasing a four-wheeler?

S NO ATTRIBUTES RESPONDENTS

1 PERFORMENS 50 50

2 PRICE 10 10

3 DESIGN 30 30

4 OTHERS 10 10

CHART-4

Interpretation:

From the above it can be stated that general normally any one while purchasing a four wheeler most of the members are seeing 50% of
members are seeing PERFORMENS and 30% of members are seeing DESIGN And 10% of members are seeing PRICE and 10% of
members are Others.

5. SUGGESTING TO FRIENDS:

The following table is regarding the customer likeliness in suggesting this showroom to
other friends. This is an indicator of customer satisfaction also.

Let’s see the responses.

48
 S NO SUGGEST FRIENDS RESPONDENTS %

1 YES 90 90

2 NO 10 10

CHART-5

Interpretation:

A look at the chart shows that 90% of the members are suggesting and 10% of the members are not
suggesting.

49
6) SALSE EXECUTIVE PERFORMENS:

The following table shows “sales executive” role in explaining the features of the car to
customer. This helps to know how effective he is in his job let’s see the response.

S NO EXPLANATION IN NUMBERS %

1 EXCELLENT 70 70

2 VERY GOOD 25 25

3 POOR 5 5

CHART-6

Interpretation:

Out of 100 respondents 60 % of them felt the explanation to be “EXCELLENT”. And 35% of
them “VERY GOOD” and rest of 5% felt to be “POOR”. According to them sales executives does
knotty explain all feature POOR this kind of responses need to be considered with seriousness.

50
7) DELIVERY TERMS:

One of the major factors, which has great role in “CRM”, is the delivery terms with regard to
customer query or grievance.

DELIVERY TERMS IN NUMBERS

70

TIMELY/PROMPTLY

SAFELY 25

INCONDITION 5

CHART-7

Interpretation:

From the above chart we conclude that most of the customer that is 70% of found the
delivery process is to be “TIMELY” and 25% of delivery process to be “SAFELY” and 5% of
delivery process to “INCONDITION”.

51
8) What is your opinion about mileage?

S NO OPINION RESPONDENTS %

1 EXCELLENT 50 50

2 GOOD 30 30

3 AVERAGE 15 15

4 POOR 5 5

CHART-8

Interpretation:

Out of the 100 respondents 50% of them told “EXCELLENT” and 30% of them told “GOOD” and
15% of them told “AVERAGE” and 5% of them told “POOR”.

9) AMBIENCE OF SHOW ROOM:

52
 The other factor, which has much influence on the customer, is the “AMBIENCE” of the show
room. This will help to know how the customer perceives this particular show room in comparison
with the other showroom.

S.NO SCALE RATING RESPONDENTS %

1 SHOWROOM AMBIENCE 55 55

2 DISTANCE 25 25

3 APPEAL 10 10

4 OTHERS 10 10

TOTAL 100 100

CHART-9

Interpretation:

From the above graph we can conclude that out of 100 customers interviewed 40% were telling that
the ambience of showroom is “PLEASANT’ and 38% was telling as “EXCELLENT” and 22% says
“APPEAL” is very good.

10.Since how many months have you been using HYUNDAI car?

53
 No. of respondents Percentage

0-6 months 23 23%

6-12 months 37 37%

1-2 years 36 36%

More than 2 years 04 04%

Total 100 100%

Using of the service (in months):

Interpretation:

From the above table it is seen that 37% of the respondents have been using HYUNDAI

products for past one year. While 36% have been using it for more than 1 year, and a significant 23%

of respondents have been using the service for less than six months. Only 4% of the respondents have

been using HYUNDAI products for more than 2 –years.

54
11.What is the reason for choosing this car?

No. of respondents Percentage

Less price 20 20%

Quality service 56 56%

Brand image 24 24%

Total 100 100%

Reason for choosing the service:

Interpretation

From the above table it is shown that 56% of the respondents are citing quality of service as

the factor. While 24% cited brand image as the reason for choosing the service. As far as price is

concerned only 20% of the respondents have quoted it as the reason for choosing this service.

12.Why do you prefer for this service?

No. of respondents Percentage

55
 Convenience 53 53%

Economical 30 30%

Security 04 04%

Features 13 13%

Total 100 100%

Preferring for this service:

Interpretation

In today’s busy world convenience seems to be the most overriding factor while preferring a cellular

service. It is clear that 53% of the respondents have preferred this service due to easy & hands free

availability, making it convenient to use it. On the other hand 30% have said economy of the service,

while 13% of the respondents have given features as their choice. While a meager 4% of the said

security as the reason for preferring the service.

13. Do you feel that the instruments being provided along with the services is ok or you want a
change (as per choice)?

No. of respondents Percentage

Yes, we want change 10 10%

No, it is OK 90 90%

Total 100 100%

56
Instruments provided with service are ok or not:

Interpretation:

From the above table it is clear that 90% of the total 100 respondents doesn’t want any change

in the instruments being provided by the company, they want as it is. But the remaining 10% of the

respondents are willing to have change in that at some choice, in terms of certain features as

compared with the competitors.

14. What is your Opinion on the service availability of HYUNDAI?

Respondents Percentage

Easily available 60 60%

Not available 10 10%

To some extent 30 30%

Can’t say 00 00%

Total 100 100%

57
Interpretation:

The above table indicates that the HYUNDAI services are easily available in urban areas; this

is clarified from 100 respondents surveyed.

58
15.Are you satisfied with the quality of service being provided?

No. of respondents Percentage

Yes 85 85%

No 5 5%

To some extent 0 0%

Can’t say 10 10%

Total 100 100%

Satisfaction l with the quality of service:

Interpretation:

From the above table it is clear that 85% of the respondents are satisfied with the quality of

service while a significant number i.e., 10% of the respondents couldn’t say anything and 5% of the

respondents replied they are not satisfied with the quality of service.

16.Have you faced any problem at the time of Change in section?

59
 No. of respondents percentage

Yes 10 10%

No 90 90%

Total 100 100%

Facing of problems:

100
90
90
80
70
60
50
40
30
20
10
10
0
Yes No

Interpretation:

The above table indicates that at the time of activation only 10% of the respondents have

faced problem with company, and 90% of the respondents have not face any problem.

17. YES, What is your rating factor for Car which you will give?

RATING FACTOR :-

GOOD FAIR BAD

60
 62 4 1
Quality
46 20 1
Price 55 12 0

Longevity

Others (_)

Interpretation:

By the above bar-chart we know that out of 100 respondents 67% have used the HYUNDAI. Out of
67% respondents 62% people rated good quality, 4% respondents rated fair quality and remaining 1%
respondents rated bad quality.

Out of 67% respondents 46% respondents rated good price, 20% respondents rated fair quality
and remaining 1% respondents rated bad price.

Out of 67% respondents’ 55%respondents rated good longevity and 12% respondents rated fair
longevity.

18. What way you think promotion of HYUNDAI Products Should be done

a) Offers b) Advertisement

61
c) Free Service d) others ( )

Offers Advertisement Advertisement Free Service Free service and offers All the
above
And offers

8 10 17 42 5 6

Interpretation:

By this pie-chart we know that the promotions should be done by free service and advertisement.

19.Is the appointment system useful to you?

1)Completely 2) Useful 3) Not useful

SL.NO OPTIONS RESPONSE`

1 Completely 25

62
 2 Useful 73

3 Not useful 2

Source: customer survey (primary data)

Appointment system

Interpretation:-

Among the 100 customers when a question was raised regarding the usefulness of service
appointment system 25% of the respondent said completely useful, 73% said useful and 2% said not
useful.

CHAPTER-V

63
FINDINGS

SUGGESTIONS

CONCLUSION

ANNEXTURE

BIBLIOGRAPHY

64
FINDINGS

1. Most of the respondents were aware by the friends and relatives (48%).Advertisements (28%)
also helped in providing information to the respondents.
2. 82% of the respondents were aware of HYUNDAI brand.
3. In advertisement media newspapers (56%) were much affective and motor (38%) was also a
major advertising media.
4. Many factors like family members advertising were responsible for influencing the customers to
buy HYUNDAI MOTORS.
5. 6% of the customers were very much satisfied with HYUNDAI MOTORS. Whereas 58% was
satisfied with HYUNDAI MOTORS.
6. 39% of the respondents were satisfied with the service of the HYUNDAI MOTORS.
7. After sales service at door step 38% was one of the factors which help the purchaser to buy a
HYUNDAI MOTORS. Prompt service 52% also help to attract the purchaser.
8. 54% of the respondents considered the price of the HYUNDAI MOTORS. As higher where as
only 8% considered as economical and 38% of the respondent said it as reasonable.

65
SUGGESTIONS

1. The most important media for consumer durables is MOTORS. 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 HYUNDAI MOTORS is high they should try to reduce prices because
there are many other TV’s which can be purchased at lower cost, and then these people are
selling. If not, the sales may decrease.
3. More features should be added to the television according to the needs of the customer,
because their competitors are coming with new models. According to the competitors
changing models also these people should change the models also these people should change
the models or change the technology.
4. Company should give some incentives to the dealers for promoting the products of
HYUNDAI MOTORS. They should not neglect dealers. They should select good dealers, b
which they can give customer satisfaction.
5. Company should setup service centres at dealer level itself. They should train some personnel
for exclusive maintenance of these Televisions. They should provide home service to the
customers. The personnel should be appointed by company to the dealers. The service should
be accurate.

66
 CONCLUSION

A study was useful in understanding the customer relationship management of DOBRO

HYUNDAI CARS among a various customers launching new formulations can make Innova
to the pioneer in many market segments.

Innova was inferred that most customers of high-income group preferred the supply of
Innova CARS. About 70% of customers are aware of Innova CARS.

Most of the customers agree that Innova is best quality with reasonable price the attitude 50%
of customers towards price of Innova Cars is reasonable. But 10% of the customers of asking
for improvement in the quality.

67
 ANNEXTURE

Name of Respondent: ___________________________________________________

Designation: ________________________ Income: ___________________________

Address: ______________________________________________________________

Phone No._________________ Email id: ___________________________________

Introduction & purpose

Good ___________________. I’m __________________ from HSM on Customer Relationship

Management. As part of curriculum I am doing this survey for the award of Master of Business
Administration. Kindly, co-operate, the information given by you will be used for academic purpose
only.

……………………………………-o0o-………………………………………………

1. DO YOU OWN A CAR? (YES / NO)

2. SOURCES OF AWARENESS: ()

(A)T.V (B)NEWSPAPER (C)FRIENDS (D)DEALERS

3. LEVEL OF SATISFACTION ( )

(A)EXCELLENT (B) GOOD (C) AVERAGE (D) POOR

4. WHAT ARE THE VOLUBLE ATTRIBUTES YOU NORMALLY LOOK WHILE PURCHASING
A FOUR-WHEELER? ()

(A) PERFORMENS (B) PRICE (C) DESIGN (D) OTHERS

5. SUGGESTING TO FRIENDS: (YES/NO)

6) SALSE EXECUTIVE PERFORMENS: ( )

(A)EXCELLENT (B) GOOD (C) AVERAGE (D) POOR

68
7) DELIVERY TERMS: ()

(A) TIMELY/PROMPTLY (C) SAFELY (C) INCONDITION

8) AMBIENCE OF SHOW ROOM: ( )

(A) SHOWROOM AMBIENCE (B) DISTANCE

(C) APPEAL (C) OTHERS

9. ARE YOU SATISFIED WITH YOUR FOUR WHEELER? (YES / NO)

10. PLEASE RATE OVER ALL EXPERIENCE WITH REGARD TO THE ABOVE

ANS: ___________________________________

11. POST PURCHASE:

(A) DID THE SALES PERSONNEL CONTACT YOU ABOUT THE SATISFACTION
LEVEL AFTER DELIVERING THE CAR.? (YES / NO)

i) HOW MANY TIMES ( )

A) ONCE B) TWICE C) MORE THAN TWICE

II) WERE THEY FRIENDLY (YES / NO)

11. PLEASE MENTION YOUR VALUABLE SUGGESTIONS:

__________________________________________________________________________________
__________________________________________________________________________________
___________________________________________

69
 BIBLIOGRAPHY

 PHILIP KOTLER 2000/e - MARKETING MANAGEMENT

 PHILIP KOTLER &

GARY ARMSTRONG - PRINCIPLES OF MARKETING

 G.C. BERI - MARKETING RESEARCH

 www.HYUNDAIbharat.com
 www.dobroHYUNDAI.com

70