Customer Relationship Management

A CASE STUDY OF HYUNDAI MOTORS

Bachelor of Business Administration (BBA)

Semester-VI (Paper Code-BBA 310)

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by

Mrs. Sarmishtha Sharma YamanBeriwal

13190301716

BBA- M2

Nurturing Excellence

Institute of Innovation in Technology & Management,

New Delhi – 110058
2016-19

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 Certificate

I, Mr Yaman Beriwal, Roll No. 13190301716 certify that the Project Report (Paper

Code BBA-310) entitled “Customer Relationship Management: A CASE STUDY

OF HYUNDAI MOTORS” is completed by me by collecting the material from the

referenced sources. The matter embodied in this has not been submitted earlier for

the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student

Certified that the Project Report (Paper Code BBA-310) entitled “Customer Relationship

Management: A CASE STUDY OF HYUNDAI MOTORS” done by Mr Yaman Beriwal, Roll

No. 13190301716, is completed under my guidance.

Signature of the Guide

Name of the Guide:

Mrs. Sarmishtha singh

Designation:

Countersigned

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FORMAT FOR CONTENTS & LIST OF TABLES/FIGURES/ SYMBOLS

CONTENTS
S No Topic Page No
1 Certificate -
2 Acknowledgement -
3 List of Tables -
4 List of Figures -
5 Body of the Report
6 References/Bibliography
7 Appendices

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 Chapter-I

INTRODUCTION

1.1 INTRODUCTION

Customer Relationship Management (CRM) encompasses activities and processes

intended to help an organization understand, communicate with, and service the needs of,

customers and prospects.Most people think of CRM as a system to capture information

about your customers. However, that is only part of the picture. The main driver for CRM

is the underlying philosophy that successful customer engagement, and therefore

successful business, is based on the ability to build meaningful relationships ‘with

customers.CRM is also about what you do with that information to better meet the needs

of your existing customers and identify new customers, resulting in higher profits for

you.

Customer Relationship Management (CRM) is a business strategy that enables:

1. Organizations to get closer with their customers,

2. To better serve their needs,

3. Improve customer service to enhance customer satisfaction, thereby maximizing

customer loyalty and retention.

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1.1.1 CHARACTERISTICS

1. Relationship management is a customer-oriented feature with service response based

on customer input, one-to-one solutions to customers ‘requirements, direct online

communications with customer and customer service centers that help customers

solve their questions.

2. Sales force automation. This function can implement sales promotion analysis,

automate tracking of a client‘s account history for repeated sales or future sales, and also

coordinate sales, marketing, call centers, and retail outlets in order to realize the sales

force automation.

3. Use of technology. This feature is about following the technology trend and skills of

value delivering using technology to make ―up-to-the-second‖ customer data available.

It applies data warehouse technology in order to aggregate transaction information, to

merge the information with CRM solutions, and to provide KPI (key performance

indicators).

4. Opportunity management. This feature helps the company to manage unpredictable

growth and demand and implement a good forecasting model to integrate sales history

with sales projections.

1.1.2 Importance

CRM has tremendous relevance in the corporate world:-

1. 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.

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2. 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.

3. 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.

4. 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

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.

5. 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.

6. All the details in CRM system is kept centralized which is available anytime on

fingertips. This reduces the process time and increases productivity.

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 7. 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.

8. 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.

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

Company (HMC). Chung Ju Yung had founded Hyundai construction and the

engineering company in the year of 1947. The Hyundai motor company later was

established in the year of 1967. This company’s first model, Cortina was considered to be

released in the cooperation with the Ford motor company during the year 1968. When the

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Hyundai wanted to build up the car by own they hired the George Turnbull, who is

considered to be the former MD of the Austin Morris at the British Leyland. In turn he

hired the five other engineers of British cars who are at the top list. They were engineer’s

Edward Chapman and the john Simpson, Kenneth Barnett body design, john Crosthwaite

as the engineer of chassis and the peter Slater as the company’s chief development

engineer. In the year of 1975 the Pony, which is recognized as the first Korean car which

was found to be released with the styling by the Giorgio Giugiaro of an ital. design and

the power train technology which is provided by the Japans Mitsubishi motors. The

exports started during the following year to the Ecuador and there after soon to the

countries of Benelux.

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1.2 OBJECTIVES

The main objectives are

1. To study the current practices of CRM.

2. To find out the impact of CRM on the profitability of The Hyundai ltd.

3. To study the factors affecting the CRM practices.

4. To study the role of information technology in CRM.

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 Chapter-II

RESEARCH METHODOLOGY

2.1 Literature Review

According to Dickie, (1998) CRM is a strategy that uses information, including the wants

and needs of the customers, to establish rapport with the customers and engender a

dedicated, stronger relationship with individual customers and into long term business

partnerships and vendor/business relationships.

Fathy (1999) commented: CRM is all about understanding the customers‟ needs and

leveraging this knowledge to increase sales and improve service. CRM blurs the

boundaries between sales and service, and unifies a company’s activities around the

customer. The overarching goal is to increase customer share and customer retention

through customer satisfaction. In other words CRM is the strategic concept that can

provide the strategic to help the enterprises, and the objective of CRM can be analyzed in

three aspects that are improvement of efficiency, development of market and customer

retention.

Goldenberg (2000) believes that CRM is not merely technology applications for

marketing, sales and services but rather when it is successfully implemented ; it enables

firms to have cross-functional , customer-driven , technology-integrated business process

management strategy that maximizes relationships.

According to Bose (2002) noted that CRM was invented because the customers differ in

their preferences and purchasing habits. If all customers were alike, there will be little

need for CRM. As a result, understanding customer drivers and customer profitability,

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firms can better tailor their offerings to maximize the overall value of their customer

portfolio.

According to Chen and Popovich(2003), CRM is not a concept that is really new but

rather due to current development and advances in information and enterprise software

technology, it has assumed practical importance. The root of CRM is relationship

marketing, which has the objective of improving the long-term profitability of customers

by moving away from product-centric marketing.

Chen and Popovich (2003) argued that CRM is a complicated application which mines

customer data, which has been retrieved from all the touch points of the customer, which

then creates and enable the organization to have complete view of the customers. The

result is that firms are able to uncover and determine the right type of customers and

predicting trend of their future purchases.

Chin et al (2003) stated that that due to many technological solutions available for CRM

automation, it is often misconstrued as a piece of technology. But they maintained that in

recent times many companies have realized the strategic importance of CRM, and as a

result, it is becoming a business value-effort rather than technology- centric effort.

According to Greenberg (2004), CRM generally is an enterprise-focused endeavor

encompassing all departments in a business. He further explains that, in addition to

customer service, CRM would also include, manufacturing, product testing, assembling

as well as purchasing, and billing, and human resource, marketing, sales and engineering.

According to Fisher (2007) the choice of a topic should make a researcher more

confident in investigating and doing the research methods. The topic should based on

interest and relevancy. The scope should not be too wide and not too specific. After

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searching in many areas, the most interesting area that authors decided to choose is

Customer Relationship Management (CRM). In the competition world the importance of

retaining existing customers and expanding customer size is paramount. The more

opportunities that business enhances customer satisfaction, the more customers conduct

business performance to be better. One way of achieving this is open up more channels

such as direct sales, franchises, online sales and online after sales services, etc.

Sinkovics and Ghauri (2009) relate the necessity for engaging in customer relationship

management to high cost of direct sales, highly intensifying level of competition in the

global level, and need for information about various aspects of the business in general,

and consumer behaviour in particular, that can be used to increase the levels of sales.

According to Peppers and Rogers (2011), there is global tendency in customer

relationship management that relates to the shift from transactional model towards the

relationship model. In other words, Peppers and Rogers (2011) argue that satisfying

customer needs as a result of on-time transaction is not sufficient today in order to ensure

the long-term growth of the businesses.

2.2 About

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

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research methods/techniques but also the methodology and they also need to know which

of these methods or techniques, are relevant and which are not, and what would they

mean and indicate and why. Researchers also need to understand the assumptions

underlying various techniques and they need to know the criteria by which they can

decide that certain techniques and procedures will be applicable to certain problems and

others will not. All this means that it is necessary for the researcher to design his

methodology for his problem as the same may differ from problem to problem.Research

methodology has many dimensions and research methods do constitute a part of the

research methodology. The scope of research methodology is wider than that of research

methods.

2.3 Types of data

Primary data are information collected by a researcher specifically for a research

assignment. In other words, primary data are information that a company must gather

because no one has compiled and published the information in a forum accessible to the

public. Companies generally take the time and allocate the resources required to gather

primary data only when a question, issue or problem presents itself that is sufficiently

important or unique that it warrants the expenditure necessary to gather the primary data.

Primary data are original in nature and directly related to the issue or problem and current

data.

There are many methods of collecting primary data. The main methods of primary data

collection include:

 Questionnaires

 Interviews

 Focus group interviews

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  Observation

 Case studies

 Diaries

 Critical incidents

 Portfolios

The primary data, which is generated by the above methods, may be qualitative in nature

(usually in the form of words) or quantitative (usually in the form of numbers or where

you can make counts of words used).

Secondary data are the data collected by a party not related to the research study but

collected these data for some other purpose and at different time in the past. If the

researcher uses these data then these become secondary data for the current users. These

may be available in written, typed or in electronic forms. A variety of secondary

information sources is available to the researcher gathering data on an industry, potential

product applications and the market place. Secondary data is also used to gain initial

insight into the research problem.

2.3 Sources of secondary data

Sources of Secondary Data

The various sources of secondary data can be divided into two broad categories:

 1. Published sources, and

 2. Unpublished sources.

1. Published Sources:

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  The governmental, international and local agencies publish statistical data, and

chief among them are explained below:

(a) International Publications: There are some international institutions and bodies like

I.M.F, I.B.R.D, I.C.A.F.E and U.N.O who publish regular and occasional reports on

economic and statistical matters.

(b) Official Publications of Central and State Governments: Several departments of

the Central and State Governments regularly publish reports on a number of subjects.

They gather additional information. Some of the important publications are: The Reserve

Bank of India Bulletin, Census of India, Statistical Abstracts of States, Agricultural

Statistics of India, Indian Trade Journal, etc.

(c) Semi-Official Publications: Semi-Government institutions like Municipal

Corporations, District Boards, Panchayats, etc. Publish reports relating to different

matters of public concern.

(d) Publications of Research Institutions: Indian Statistical Institute (I.S.I), Indian

Council of Agricultural Research (I.C.A.R), Indian Agricultural Statistics Research

Institute (I.A.S.R.I), etc. Publish the findings of their research programs.

(e) Publications of various Commercial and Financial Institutions

(f) Reports of various Committees and Commissions appointed by the Government as the

Raj Committee’s Report on Agricultural Taxation, Wanchoo Committee’s Report on

Taxation and Black Money, etc. are also important sources of secondary data.

(g) Journals and News Papers: Journals and News Papers are very important and

powerful source of secondary data. Current and important materials on statistics and

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socio-economic problems can be obtained from journals and newspapers like Economic

Times, Commerce, Capital, Indian Finance, Monthly Statistics of trade etc.

2. Unpublished Sources:

Unpublished data can be obtained from many unpublished sources like records

maintained by various government and private offices, the theses of the numerous

research scholars in the universities or institutions etc.

The secondary data can be both qualitative and quantitative. The qualitative data can be

obtained through newspapers, diaries, interviews, transcripts, etc., while the quantitative

data can be obtained through a survey, financial statements and statistics.

One of the advantages of the secondary data is that it is easily available and hence less

time is required to gather all the relevant information. Also, it is less expensive than the

primary data. But however the data might not be specific to the researcher’s needs and at

the same time is incomplete to reach a conclusion. Also, the authenticity of the research

results might be skeptical.

2.4 How secondary data is analyzed?

Secondary data analysis is simply the analysis of secondary data. Other parts of analyzing

secondary data include the following:

 Determining which of the data you collected is associated with your project (what

data can be used).

 Interpreting the secondary data to better understand your city's demographics and

the homeless situation in your city.

 Cross-analyzing the secondary data to find out what is happening in your city

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 regarding homelessness and why it is happening.

 Make recommendations, judgments, and give ideas on how to improve

homelessness in your city based on the secondary data.

 The analysis of secondary data involves closely and carefully weeding through

the data to find data you can use for your specific purposes, figuring out how that

data applies to your project and drawing conclusions based on your findings.

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 CHAPTER-III

ANALYSIS

Customers from both the aim and a measure of assessing the business activities of

Hyundai Motor Company. In order to fulfill the “Unlimited Responsibility toward

Customer Satisfaction,” Hyundai continues to develop and implement innumerable

strategies and systems, seeking to provide products and services from customers’

perspectives. Going beyond satisfying customers to move their hearts is one of the core

values for which Hyundai pursues and practices sustainable management.

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Quality First Management

HMC began to focus on quality improvement in 1999. In 2002, the quality management

teams at HMC and KMC were merged into the Hyundai-Kia Quality Management

Division under direct supervision of the HMC chairman. In 2003, we created two new

quality management units to ensure the quality of cars exported overseas. The quality

management and maintenance teams were also merged to ensure more effective

operation. In 2004, the Global Quality Management Office was established with the

purpose of responding to any quality problems reported any day of the year, 24-hours a

day. Currently, senior executives from all divisions meet twice a month to discuss quality

management issues and to improve the emotional appeal of our vehicles with the goal of

positioning HMC as a ‘Best Buy Brand’.

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Improving Customer Satisfaction

Various activities are carried out to enhance customer satisfaction including a special

program for overseas called ‘Voice of the Customer’. In addition to conducting customer

satisfaction surveys on a regular basis, we also conduct in-depth interviews with

customers through focus groups, to analyze customer complaints and to enable us to

implement measures to address any identified issued. Another important initiative is our

Dealer Enhancement Program, which is designed to enhance capacity, improve facilities

and enhance overall management. Dealers are also invited to visit Korea to increase their

understanding of Hyundai's operations and to strengthen partnerships with staff based in

Korea.

Guaranteeing complete customer satisfaction

HMC has an ever-growing global network of service centers furnished with high-tech

equipment and certified elite service technicians who provide a top quality service.

Moreover, HMC was the first automaker to operate the ‘Before Service’ program which

has benefited over 4 million overseas customers with its free check-up service. HMC also

launched a new ‘Home to Home’ repair service in 2011, which collects vehicles at a time

and location of the customer’s choice and then, returns the vehicle when the work is

completed, saving the customer valuable time out of their busy schedule. HMC has

recently made significant improvements at the Hyundai Customer Care Center, making

operators more effective at handling customer requests and initiating some exciting

changes to HMC’s customer service. For example, a number of new customer service

initiatives were instigated including the provision of rental cars.

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CURRENT PRACTICES OF CRM

Following are the CRM best practices that can help organizations – specifically their

marketing, sales and customer service departments:

1. Make sure your customer data is reliable and up to date: A CRM system is only as

good as the data that’s in it. So constantly make sure any data entered into your CRM

system is accurate – and regularly review and scrub customer data, to eliminate

redundancies and ensure the information (e.g., the customer’s name, address, preferred

method of contact and purchase history) is up to date.

2. See that everyone who interacts with customers knows the history. “Know the

customer's purchase history,” says Mark Draper, an independent project management

consultant experienced in CRM. “It is important to have a detailed summary of the

customer's purchase history including dates, quantities and terms. Customers will often

want to repeat a previous order and nothing looks as bad as not knowing what and when.”

3. Know how and where your customers are interacting with you. “Today consumers

can reach out to a company via email, social media, chat, bots, or the tried and true phone

call. If [a] company really values [its] customers, [it] will be there,” wherever “there” is,

says MayurAnadkat, vice president, product marketing, a provider of contact center

software. “Furthermore, by understanding their customers’ preferences, history and

context at all points in their journey, companies can really engage with their customers at

a personal level. It shouldn’t matter where a customer is reaching out from. By

implementing the proper infrastructure a customer will experience the same great service

every single time.”

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4. Understand where customers are in the purchase process/cycle. “People buy when

they’re ready to buy, not when you’re ready to sell,” says Clate Mask, cofounder and

CEO, a provider of sales & marketing software. “By using a CRM tool to organize and

analyze lead data, you can determine who is a hot lead, and who is in need of nurturing so

you can guide them towards making a purchase.”

5. Provide the personalization customers crave. “Sending relevant, personalized emails

based on timely and accurate customer data can increase click-through rates by up to 50

percent,” says Jason Rushforth, vice president & general manager, Customer Experience

Business Unit, Infor, an enterprise software company specializing in CRM. And “with

geolocation, sellers can send personalized messages and offers to customers as they

approach a store location.”

6. Eliminate pain points. “Get serious about fixing the things that frustrate your

customers,” says Robert Wollan, senior managing director, “Over half of the top 10 most

frustrating customer issues are the same as they were over a decade ago. Customers

actually make it easy for brands to identify frustrating experiences if they are paying

attention and will do something about it.

7. Follow up with customers. “Follow-up is key to building a lasting customer

relationship, and it doesn’t have to be a hassle,” says Mask. “Automating customer

follow-up can deepen a customer relationship by allowing you to send timely and

relevant information to the right people while you stay focused on running your

business.”

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ROLE OF CRM IN AUTOMOBILE INDUSTRY

Customer relationship management is important to every firm as they seek to make profit

through long-term relationships with customers. Automobile industries faces unique

challenges in the modern economy, there is a strong competition between new and used

car market. Costumers have incredible information available to them through internet,

review system, social media and more so building relationship requires more effort.

Customer relationship management is the strongest and most effective approach in

maintaining and creating relationship with customers. Customer relationship management

is not only important for business but also for creating a strong personal bonding relation

with in people. Development of this type of relationship builds the business to new level

of success. Once such a relation is built it is easy for the organization to identify the

actual needs of the customer and to know their expectation and that lead to serve them in

a better way. Some of the effective tool used in most of the renowned organization are

batch book, sales force etc.

SATISFACTION AND LOYALITY:

Table below shows the relation between the satisfaction of the respondents and they

recommended the vehicle and service to their friends or relatives for purchasing.

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HYUNDAI MOTORS

Findings:

 73% of car dealers are confirming the jobs attended from the Final Inspector, in

this dealer's workshop it is confirmed from Service advisor.

 The WAIT & TAKE facility is offered for 35% of vehicles serviced by them,

even for minor jobs.

Suggestions:

 In Customer lounge only TV facility is provided to the customer. This can be

improved by including Internet, magazines, water and video’s to enhance

customer comfort ability.

 The analysis to be done technician wise for all repeated individual job.

The roles of technology in CRM

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The important role of IT in CRM is to facilitate and enhance customer-oriented attitude

by using IT. An organization can customize and deploy the system according to their

strategies (Dewhurst et al., 1999 cited in Malcolm, 2010; Injazz and Karen, 2003).

Reinartz et al. (2004) also supported that CRM technology acted as facilitator to the

CRM activities. ECRM can enhance the management of relational information process in

CRM process. CRM technology can utilize and enable organization to track, aggregate

and analyze customer information and employ the results for service and marketing

activities (Schoder and Madeja, 2004; Chen &Popvich, 2003; Jayanthi and Vishal,2009).

CRM technology would be able to retrieve the customer’s information from the

customer’s database (Chen &Popvich, 2003). The organization can use a technology to

improve the interaction between the organization and customers. Organization can

observe customers, learn from customers’ past interactions and deploy the technology

appropriate with customers (Eckerson& Watson, 2000 cited in Malcolm, 2010).

Advanced eCRM technology involves the use of databases, data warehouse and data

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mining. The technology can help organizations increase number of customer who use

eCRM (Ngai, 2005). Shugan (2004) stated that successful eCRM will integrate IT to

deliver a higher level of customer relationship. IT in organization must be customized,

simple and convenient to fit with customers. The customized systems become more

available by the embedding of information technology (Piller and Reichwald, 2004).

Information technology supports CRM by using a database, and eCRM is mutually

influenced by customers and IT (Gordon, 2002). There are many channels to reach

customers through Internet such as e-mails, e-newsletter, websites and chat rooms (Tan et

al., 2002; Andy & Carolyn, 2008).

Greenberg (2001) and Fickel (1999) mentioned that in some organization, eCRM

technology consists of 2 components which are front office applications and back office

applications. The front office applications will sustain the sales, marketing, customer

service and other service activities in the organization. The back office will take care of

the data depository. It helps integrate and analyze the data such as financial, operations,

logistics and human resources

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TO STUDY FACTOR AFFECTING CRM PRACTICES :-

I recently conducted a study to determine the factors that influence the behavior of

customer service workers during customer interactions. Customer service worker

behavior is important because the behavior exhibited by a service representative will

affect a customer's relationship with the organization, and consequently affect CRM

success. Research has consistently found that person-to-person interactions between

customers and employees greatly affect a customer's overall relationship with a company.

The design for the study was to conduct two focus groups with industry experts to verify

the content of a survey that was created for the study. The survey was then administered

in a test-retest process to verify reliability.

The first focus group included senior CRM consultants who had participated in many

CRM installations. During the session the consultants were asked if an organization

needs a customer-centric culture and employee-friendly policies to maximize the CRM

investment. The consultants concluded that CRM is an enabler of customer relationships,

but that CRM could not achieve its full potential unless an organization has a customer-

centric culture. The second focus group included the management of an organization that

has achieved outstanding customer service rankings, and was listed on the Fortune

Magazine 100 Best Places to Work List for six consecutive years. The organization has a

customer-centric, employee-friendly culture.

The managers were asked to review the following list of factors that affect employee

behavior: employee job fit/employee empathy; job satisfaction; organizational culture;

physical surroundings; training; the ability of the organization and individual employees

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to manage change; level of employee stress; job design; role clarity; work overload;

empowerment; the congruity of policies and procedures to support good customer

service; employee perception of organizational fairness; and employee perception of

organizational concern for the employee and her family. Additionally, the speed and

availability of necessary information to solve customer problems and customer-friendly

organizational processes and procedures can also influence a customer's perception of

service quality. The managers agreed that the factors influence customer service worker

behavior.

The managers believed that customer service workers who are frustrated or angry with

their employers often subtly project their negative feeling about the organization during

customer interactions. They believed that customer service workers will also project the

customer view that is prevalent in their organization. The survey that was created for the

study includes several questions about each factor to determine if a problem might exist

and further investigation is needed. The focus group of managers reviewed the survey

and agreed to allow the survey to be administered to their employees. The survey was

sent to a randomly selected group of employees. Responses indicated that the

organization had positively executed policies and actions concerning all the factors that

were measured.

Some of the findings were extremely interesting. One item stated was, In the past six

months my manager has mentioned/discussed the importance of good customer service

times. The average response was 12 times. The responses indicate that the organization's

management has accepted the customer service paradigm, and that management

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reinforces the importance of customer service with employees often. Another item states:

I believe that the company I work for cares about its employees and their families. The

answers indicated that the employees strongly agreed that their employer is concerned

about the employees and their families. Creating a culture of mutual trust is important

because it can be a means to build a sustainable competitive advantage.

TO STUDY IMPACT OF CRM ON PROFITABLITY:-

Effective customer relationship management is driven by an analytical or business

intelligence process that must be fed with internal, operational and, increasingly, external

data sources. To be enterprise enabling, CRM must cut across management functions and

operating activities to resolve or reduce problems such as high-value-customer churn.

Poor integration of CRM strategies, policies, architecture, databases and technology

standards or use of existing operational platforms can lead to inconsistent results.

CRM solutions must bring a broad range of analysis and modeling capability based on

events or rules that drive the business. By saving and reusing these analysis steps as well

as their results, managers gain understanding of actions already taken and those to be

taken. Additionally, CRM must have a cross-channel view to understand the whole

customer.

The criteria that differentiate companies lagging from those leading in CRM are:

· The ability to manage all aspects of a customer relationship.

· Regulating frequency and quantity of contacts and predetermining quality.

· Adding privacy features to the integrated customer database and managing permission.

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· Personalizing of-ferings and messaging based on customer transactions, interactions,

advice, surveys, queries and preferences.

To achieve these organizations must:

· Modify rules to optimize each customer communications stream.

· Integrate and manage across all channels.

· Capture learning based on all interactions and associated analytical models.

· Build two-way interactions to sell, service or learn the customer's needs.

Instead of one-size-fits-all promotions and customer approaches, CRM allows for

personalization to dramatically build customer loyalty, achieve operational and servicing

goals and gain a sustainable competitive advantage.

Integrated capabilities. Companies gain the strategic and economic benefits associated

with CRM by integrating their organizational capabilities into the added intelligence from

CRM technologies to either confirm or change decision-making criteria.

Massively parallel processing and data warehousing can bring customer intimacy,

operational efficiency and product superiority to new levels. Early investors in the

financial services industry found swift ROIs, often much higher than for traditional

technology investments. Most recouped their investments in one to four years, but the

real issue was not the break-even point but transforming their competitive approach to

their markets.

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Once accomplished, these transformations could yield ROIs 50 times greater than normal

ROI, on an entirely different order of magnitude from such traditional ways of building

revenue as introducing new products or branches.

Gains were registered most quickly in sales and marketing, with profitability, debt

management, distribution and risk management close behind. The common factor was the

speed with which organizations were able to react to changes in the market. Time and

again, superior information let them identify a market, enter and take market share – all

before their competitors had understood what was happening.

Speed is of the essence. Windows of opportunity open and close all the time. All too

often, firms see one, but by the time they've organized an approach to it, conditions have

changed and expensive campaigns are launched without success. CRM information

engines permit companies to recognize and move instantly to exploit changes in market

conditions.

And because historical information offers a guide to future behavior, companies can build

a high degree of prediction into their operations by capturing marketing conditions and

people's behavior and then correlating them to actions under specified conditions.

Detailed knowledge of each customer's past behavior can be quickly turned into

intelligence about how they will react to the competing offer. Armed with that

knowledge, counteroffers tailored to the needs of each segment are presented.

32
Complete Analysis

I. ANALYSIS OF HYUNDAI CAR OWNERS AT MGF ON THE BASIS OF THEIR

AGE GROUP.

Age Group Respondents

Upto 25 Years 10

26-35 Years 25

36-45 years 30

46-60 20

60 and above 15

Total 100

30
30
25
25
20
20 Upto 25 Years
15 26-35 Years
15
36-45 years
10
10 46-60
60 and above
5

0
Respondents

33
ANALYSIS:

The maximum buyers of Hyundai cars as per the survey shows that the customers from

the age group of 25-35 and 36-45.The people from age group below 25 and above 60 are

less buyers of the vehicle

II HANDLING OF QUERIES AT THE TIME OF DILEVERY

14% YES
NO
86%

ANALYSIS:

Most of the customers, about 86%, were satisfied with the handling of the queries while

14% were dissatisfied with them.

34
III. INTERIOR OF THE CAR CLEAN AND UNDAMAGED AT TIME OF

DELIVERY.
13%

YES
NO

87%

ANALYSIS:

87% of the customers found car clean and undamaged at the time of delivery while 13%

found the car to be dirty or damaged.

IV. FAST , EASY AND CLEARLY EXPLAINED PAPERWORK.

NO
40%

YES
60%

ANALYSIS:

60% of the customers surveyed found the paperwork to be fast easy and clearly explained

while 40% found the paperwork as delayed and difficult.

35
V. ON TIME CAR DELIVERY WITHALL COMMITMENTS FULFILLED,

100 85
80
60
40 15
20
0
YES NO

ANALYSIS:

85% people received the car on time with all commitments fulfilled while 15% did not

get the car on time.

36
VI. KNOWLEDGE AND BEHAVIOUR OF SALES CONSULTANT

NOT SO GOOD
8%
BAD
7%

AVERAGE
25%

GOOD
53%

ANALYSIS:

While 15% customers thought that the knowledge and behavior of the sales consultant

was excellent only 7% thought they were bad. 53% considered them good while 25%

rated them as average.

37
 VII. EXPLANATION OF CAR FEATURES, WARRANTY AND SERVICE

SCHEDULE.

60
52
50

40

30
22
20 15
8
10

0
BAD AVERAGE GOOD EXCELLENT

ANALYSIS:

22% customers thought that the car features warranty and service schedule was

excellently explained while 8% customers with dissatisfied. 52% considered them good

while 15% rated them as average.

VIII. NEW CAR DELIVERY EXPIRIENCE.

24%

6%
BAD
AVERAGE
15% GOOD
EXCELLENT

55%
38
 IX. POST SALES FOLLOW UP DONE REGULARLY.

AVERAGE

EXCELLENT BAD
10% 4%

GOOD
66%

X. RESPONSE TO COMPLAINTS QUICKLY.

70 65
60
50
40
30
20 17
13
10 5
0
BAD AVERAGE 39 GOOD EXCELLENT
XI. OVERALL EXPIRIENCE AT MGF HYUNDAI

BAD
5%
AVERAGE
8%
EXCELLENT
32%

GOOD
55%

SWOT ANALYSIS

Strengths:

 Convenient place.

 Change of genuine spare parts.

 Large space

 Quality service.

 Better after sales service.

40
  Attending complaints promptly.

 Maintaining customer relationship.

 More sales promotional activities.

Weaknesses:

 Thin mechanic force

 Weak competitive strategies.

 Lack of latest technology

 High maintenance cost.

 Delay in service

Opportunities:

 Established brand name.

 Increased purchasing power of Indian Consumer.

 Growing demand

 Launch of new products like i-30 in the pipeline.

Threats:

 Increased competition.

 Loss in market share.

 Lack of latest market information.

41
Chapter-IV: Summary and Conclusions

CONCLUSION

Customer relationship management is based on customer because survive was made in

the global market and focused on the customer and the customer is becoming a key factor

for the small and big companies. The companies know that its cost is more to acquire a

new customers than to get an existing customer for a making a purchase. Another aspect

of survival of CRM is that knowing the customer better and also his/her preferences will

allow the companies to acquire new customers more easily and facilitates targets cross

selling. CRM is based on the basic marketing belief that an organization that knows its

customer like an individual.

From the findings and analysis it is clear that Hyundai Car is highly preferred when

compared to the other brands of car in the same segment.

With the analysis through the survey conducted for a period of 2 months in Delhi on the

consumer satisfaction of Mgf Hyundai Car Dealer, the findings and analysis shows that

80% of the consumers are happy with the dealer and also sales service and rest 20% of

them says that they are dissatisfied.

Since each customer is like an asset for an organization the company should try to

improve in the area of dissatisfaction.

We know that getting new customer is double the cost of retaining the old customer so

the company should focus on retaining the old customers whom a in the future purchase

42
the product or recommend others to purchase the product. Thus they help directly or

indirectly for the product sale.

Change is the only think to retain and attract the customers so the company should

identify the needs and dry to fulfill them.

RECOMMENDATIONS

Mgf Hyundai should adopt defensive marketing strategy because as being one of the

largest car dealer in delhi market.

Hyundai must adapt new technology and train their employees.

Hyundai should adopt an offensive marketing strategy for attracting customers.

Better relationship with customers

India is 11th largest passenger car market in the world. India is the second-biggest market

for small cars after Japan. It accounts for 60 percent of the domestic market. Mgfhyundai

must bank upon this aspect.

43
References

1. Mark Sweiger, Mark R. Madsen, Jimmy Langston, Howard Lombard, Click

stream Data Warehousing, Wiley Computer Publishing, Singapore.

2. Michael J. A. Berry, Gordon S. Linoff ,Data Mining Techniques: For Marketing,

Sales, and Customer Relationship Management, Wiley Computer Publishing,

Singapore.

3. Chen, I.J., Popvich, K., 2003. Understanding customer relationship management (CRM):

people, process and technology. Business Process Management Journal, Vol.9, No.5,

p.672-688.

4. Greenberg, P., 2001. CRM at the Speed of Light. McGraw-Hill, Berkley, CA.

5. Fisher, C., John, B., Diannah, L., Alistair, M., Carole, T., 2007. Researching and writing

a dissertation for business students. Pearson Education Limited, 3rd ed., England.

6. Bose, R. (2002). Customer relationship management: Key components for IT

success. Industrial Management & Data Systems, 102, 89–97.

7. http://www.nytimes.com/2004/08/04/business/global-growth-gives-Hyundai-29-

rise-in-profit.html

8. http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402324/in

dex.htm

9. http://www.automobile.com/industry-report-Hyundai-plans-for-hybrid-

alternative-in-100-percent-of-models-in-future.html

10. Kothari, C.R. Research Methodology, 3rd edition, 1997, Vikas Publishing House

Pvt. Ltd., New Delhi.

44
 ANNEXURE

Questionnaire

Name: ……………………………………………………………………

Address: ……………………………………………...........................

......................................................................................................

Contact Number: ………………………………………………….......

Age: ………………………………………………………………………

(Questionnaire will be used for academically only.)

QUESTIONS YES NO

1. Were all your queries handled during the delivery?

2. Were the interiors of the car clean and undamaged at the time of

delivery?

3. Was the paper work fast easy and clearly explained?

4. Was the car delivered on time with all the commitments fulfilled?

45
QUESTIONS BAD AVERAGE GOOD EXCELLENT

5. How was the knowledge and

behavior of sales consultant?

6. Were the car features, warranty

and service schedule properly

explained to you?

7. How was the ‘new car delivery

ceremony’ experience?

8. Were the post sales follow up done

regularly?

9. Was the response to your

complaints quick, if any??

Thank you so much for your time and support.

46