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Customer Satisfaction Original 2
Customer Satisfaction Original 2
CUSTOMER SATISFACTION
FOR
GRACE TOYOTA.
By
Anmol Yadav
In Partial fulfillment for the award of the degree
Under Graduate Degree in Management
(2011-14)
Name
: Anmol Yadav
Form No.
Course
: 1359867
: BBA
Address for
Correspondence
Contact no.
Project On
: Grace Toyota, 39
milestone, sec- 35,
NHS, Gurgaon.
: 8800620408
: Customer satisfaction
Table of Contents
Acknowledgement................................................................................................
ACKNOWLEDGEMENT
My Synopsis Report preparation schedule has been an excellent learning
experience. I feel it of utmost importance to acknowledge the contribution of my
guide without her support and guidance this research would not have been
possible.
I am indebted to Ms. Dimple Tomar, working with Grace Toyota as Head
Customer Relations for showing me right direction in the course of the project. I
am also thankful to her for finding time from her tight schedule and helping me in
various stages of the project right from arranging data to doing data analysis.
Project Title
The share of Automobile industry in the last decade in the Indian economy was
around 5% of GDP. The Indian Automobile industry became the seventh largest in
the world with an annual production of over2.6 million units in 2009.
would be about 306,000 units; total CV sales would be about 664,000 units in
2010-11. Mahindra and Mahindra (M&M) is the world's number one tractor
company by selling a record of 1.59 lakh tractors in 2009 surpassing John Deere of
the US.
Top & Major Manufacturers in Automobile Industry
Maruti Udyog Ltd.
General Motors India
Ford India Ltd.
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd.
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
ACHIEVEMENTS
The development story of the Indian automobile industry cannot be complete
without mentioning the Pioneer Mr. J.R.D Tata's role in setting up the Tata group
with high standard Engineering Research Centre (ERC) in 1965 to facilitate
technological advancement. Pioneering the indigenization of scientific knowledge
for trucks in collaboration with Mercedes Benze and launched Maruti 800 in the
year 1983 which changed the dynamics of the passenger car sector in India. It was
also known as the people's car. 60% of the Indian commercial vehicle market is
dominated by Tata Motors.
The first automobile was launched in India in the year 1897 in Bombay.
Today India is being recognized as a potential emerging auto market.
The industry adds up foreign players to their investments.
80% of the segment size is contributed by two-wheelers & motorcycles.
Indian passenger vehicle market is dominated by cars (79%) unlike the
USA.
India is the largest three-wheeler & two-wheeler market in the world. It is
second largest tractor manufacturer in the world, fifth largest commercial
vehicle manufacturer in the world.
India crossed the 1 million mark as the fourth largest car market in Asia
recently.
The industry is expected to grow to US$ 40 billion by 2015 from the current
level of US$ 7 billion in 2008. By the year 2016 the industry is expected to
contribute 10% of the nation's GDP.
Very recently history has been created in the world of Automobile Industry
by Ratan Tata, Chairman (Tata Motors) by launching the world's cheapest
car NANO. The price of the car was around one lakh which gained instant
recognition in the automobile industry across the globe. It heralded the
coming to age of the Indian Automobile Industry.
India is the second Largest Producer of Motorcycles in the world (5.2 Mln)
after China which has a production volume of 12 Mln.
Exports:
India's automobile exports have grown consistently and reached $4.5 billion in
2010, with United Kingdom being India's largest export market followed by Italy,
Germany, Netherlands and South Africa. India's automobile exports are expected to
cross $12 billion by 2014. In recent years, India has emerged as a leading center
for the manufacture of small cars.
Top 20 export destinations in 20011-2012 and growth from previous year
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Country
USA
Italy
Sri Lanka
South Africa
UK
UAE
Algeria
Bangladesh
Egypt
Germany
Colombia
Nepal
Mexico
Turkey
Spain
France
Nigeria
Greece
Netherland
Ghana
2011-2012 (in
USD Millions)
593.64
332.35
249.14
224.93
165.57
164.44
147.34
137.26
134.43
133.52
118.88
111.33
93.80
83.53
81.01
76.77
66.01
65.75
65.19
59.91
2010-2011 (in
USD Millions)
525.24
359.68
216.11
188.57
246.32
192.74
265.63
164.86
143.54
409.63
120.71
98.13
94.10
73.82
56.96
134.21
148.74
127.63
163.66
38.30
Percentage
Growth
-11.52
8.22
-13.26
-15.79
48.77
17.21
80.28
20.11
5.99
206.8
1.54
-11.86
0.32
-11.63
-29.69
74.83
125.03
94.1
151.05
-36.07
71,000 units in the same month in the previous year (with a growth rate of
17.3%). It also exported 11,712 units during September 2012, comparing to
6,318 units in the same month in the previous year (with a growth rate of
85.4%).
Toyota
Introduction
Being the most powerful car maker in the world, Toyota holds many number one
titles: No. 1 sales worldwide, No. 1 sales in Japan, bestselling car in the world
(Corolla), bestselling car in USA (Camry), most factories all over the world, the
widest range of vehicles, highest profitability.
Toyota is a typical example of how Japanese industry succeeded. Although it is
often conservative in design and not very creative in bringing new ideas, its special
attention to build quality and reliability wins customer confidence gradually. Its
emphasis on technology development and production efficiency results in up-todate products and good value for money. That's why its cars capture a lot of brains
if not hearts. Nevertheless, in recent years Toyota starts getting more creative no
matter in design and technology. Examples are Pruis and iQ. Hopefully it will be
even
stronger
in
the
future.
Toyota does not have many brands and subsidiaries. Most cars are sold under its
own brand, while Daihatsu takes care of mini cars (especially Kei-cars) and Lexus
concentrates on premium and luxury cars. Scion is a youthful brand created by its
US marketing division and is still rather insignificant. Heavy trucks and
commercial vehicles are produced by its subsidiary Hino. Toyota did not invest
Brief history:
Kiichiro Toyoda was born in a family of industrialist. His father Sakichi Toyoda
got rich by inventing automatic loom and established Toyoda Automatic Loom
Works. In the late 1920s, motor cars were scarce in Japan, but Kiichiro believed it
would be a big business in the future, so he devoted all his energy into researching
cars as well as visiting car factories in the United States and Europe. Having
opened a motor car division in his family business, he developed the first car, AA,
in 1936, with styling copied from Chrysler Airflow and a straight-six engine
copied from Chevrolet. A year later, the car division spun off from the automatic
loom
company
and
becomes
Toyota
Motor
Co.
Ltd.
Eiji Toyoda, the cousin of Kiichiro, took over the managing post of the company.
Under his leadership, Toyota improved its production system upon American
system. The so-called "Toyota Production System" encouraged workers at every
stage to suggest for improvement. Faults are fixed at each stage to prevent from
costly rework at the final quality check. This improved quality as well as overall
efficiency. Besides, the Toyota system introduced "just-in-time" parts delivery to
the supply chain so to eliminate the need of large warehouses for storing
completed parts. This saved costs and reduced risks of oversupply.
Apart from production process, Toyota also devoted high percentage of its
earnings into the latest production equipment in order to raise efficiency. In the
product side, it concentrated on developing small and medium cars in order to
avoid direct competition with the dominating American large cars. These works
paid off in the late 1950s when Japanese economy took off. From 1955 to 1965,
Toyota's output rocketed from 8,400 to 600,000 cars ! During this period, notable
models include the 1955 Crown (first car developed entirely by itself), the 1964
Corona (first successful export to USA) and the 1966 Corolla (Toyota's best seller
in Japan and worldwide). Like other Japanese cars, Toyota cars were renowned for
good value for money, offering competitive performance and features at lower
prices than their Western rivals. Their frequent updates - around 4 years each
generation - kept them fresh in the eyes of consumers.
The domestic factories in Toyota City reached their peak in 1990, with over 4
million cars produced that year. However, this export-driven economy cannot last
forever. Protectionism rose in the United States as well as in Europe. Toyota
relieved such pressure by moving the production of its Camry to USA and Carina
to UK so that local people would feel comfortable with these cars. Production
localization also allowed it to tailor-make its cars to suit the taste of different
markets. In addition to its superior quality control and fuel economy, no wonder
Camry could become America's bestselling car since 1997, beating its Detroit
rivals in their home soil.
Another problem Toyota faced from the late 1980s was the rising yen and labor
costs which made its cars less bargain, especially against Korean cars. The
Japanese giant dealt with this problem by moving production overseas on the one
hand and moving its cars up market on the other hand.
However, following the burst of "bubble economy", Japan went into a decade-long
recession. Inevitably, Toyota had its domestic sales suffered, but fortunately its
overseas business continued growing. Entering 2000s, it resumed rapid growth and
overtook General Motors as the world's bestselling car maker in 2007 (although in
terms of profitability it had been the world's No. 1 much earlier).
Always have respect for spiritual matters, and remember to be grateful at all
times.
Business results:
Production results:
Vehicles
FY 2010
(April 2009 to
March 2010)
FY 2011
(April 2010 to
March 2011)
FY 2012
(April 2011 to
March 2012)
Japan
3,721,000
3,940,000
3,956,000
Overseas
Total
3,448,000
3,495,000
2,853,000
7,169,000
7,435,000
6,809,000
4,727
5,014
5,351
FY 2010
(April 2009 to
March 2010)
FY 2011
(April 2010 to
March 2011)
FY 2012
(April 2011 to
March 2012)
Japan
1,870,000
1,913,000
2,070,000
Overseas
5,182,000
5,395,000
5,281,000
Homes
Unit = 1
Sales results:
Vehicles
Total
Homes
Unit = 1
7,052,000
7,308,000
7,351,000
5,281
5,157
5,699
COMPANY LOGO
Grace Toyota
Customer satisfaction
Customer satisfaction, a term frequently used in marketing, is a measure of how
products and services supplied by a company meet or surpass customer
expectation.
Customer satisfaction is defined as "the number of customers, or percentage of
total customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior
marketing managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses.
Customer satisfaction means money!
The lifetime value of a supermarket customer is estimated at $250,000
IBM in Rochester, Minn., calculates that 1 percent increase in customer
satisfaction is worth $257 million in additional revenue over five years.
Marriott found that each percentage point increased in the customer-wide
satisfaction measure of intent-to-return was worth some $50 million in
revenues.
A study in the Harvard Business Review showed that just a 5 percent
increase in customer retention boosts profits by 25 percent to 125 percent.
Winners of the Malcolm Baldrige National Quality Award ( heavily oriented
toward customer satisfaction) outperform the Standard & Poor's 500-stock
index by 3:1 in ROI
Sears, Roebuck operates on a financial model which shows that a 5 point
improvement in employee attitudes will drive a 1.3 point improvement in
Customer dissatisfaction:
The average business loses 10-30% of its customers each year (without
knowing which, when or why lost).
Its more costly to win a new customer than to lose an existing one (5-7
times greater); it takes 12 positive incidents to make up for a negative one.
Customers are three times more likely than service providers to recall the
quality of the personal element in a transaction.
96% of dissatisfied customers never complain to the business, but 91% will
not make return purchases.
70-85% of dissatisfaction is due to customer service not product; 68% of
customers who stop buying do so because they perceive an employee as
discourteous or indifferent.
People who complain are generally younger, have higher incomes, are better
educated, have more experience with the product, are less brand loyal, and
may have higher expectations
For every complaint there are an estimated 25 unnoted complaints.
75% of complaints reported to front line person do not get reported to
management.
Only 20% of complaints are directed to the manager by customers
800# doubles calls to corporate, but only 1 per 100/500 get addressed by a
senior executive.
Research methodology:
1. RESEARCH
a) Type of research - Two types of research has been done for this project.
First: Qualitative interviews through one to one discussions with the
Customers.
Second: Quantitative interviews with internal customers.
b) Sampling technique Simple sampling technique has been used for
collecting data from hundred no. of customers in each questionnaire.
c) Sample size - There were two Questionnaires for quantitative interview with
customers walking in for vehicle delivery and service. And each
questionnaire was having a sample size of 8 questions.
d) Sample description - The survey on customers was done on two types of
samples.
Data Collection
Q2. Service Advisor overall Behavior: Greetings, Helpfulness at Receiving time &
Delivery time, courtesy, friendliness, responsiveness & thoroughness of
explanation of Service Advisor.
Q3. Dealership Facility Feedback: Ease of driving in & out of facility, area,
Convenience of Dealership location, Cleanliness of dealership & Comfort of
waiting.
Q4. Fairness of the charges [Was the Final amount charged at the time of delivery
Close to the initial estimate at the time of reception?]
Q5. Total time required to service your vehicle [Dealer took Appropriate Time]
Q7. Condition/ cleanliness of vehicle on return [Was the vehicle cleaning done as
Per your request?]
For Sale:
Q1. Was the vehicle delivered to you on the date promised by dealership?
Q2. On the day of delivery, how much time it took from the Time you arrived at
the dealership, till you drove out with new car?
Q3. How would you rate your experience on the day of delivery?
Q4. How would you rate courtesy & friendliness provided to you at the dealership?
Q5. How would you rate the overall experience of the dealership?
Q6. How would you rate the explanation of vehicle features by the sales person?
Satisfaction level:
References:
Findings
Service:
4% could not get service as per their schedule/choice, while 79% could and
remaining was neutral.
Only 2% customers were not satisfied with the location of the dealership,
cleanliness, convenience and facility, while 83% were.
All the customers were satisfied with the behavior and approach of sales
advisor.
2% not satisfied with the fairness of charges, 78% were highly satisfied.
2% not happy with the service time taken, 78% were highly satisfied.
5% not satisfied with the thoroughness of maintenance, but 80% were
highly satisfied.
10% not satisfied with the cleanliness of vehicle, 76% were highly satisfied.
3% not satisfied with overall experience, 91% were highly satisfied.
Sales:
97% of the customers got their vehicle delivered as on the promised date.
87% customers had their vehicles delivered in less than 60 minutes.
89% of customers felt, they had good experience on the day of vehicle
delivery.
91% customers felt that the SO was friendly.
Suggestions:
A better communication channel should be set up, so that with minimum
effort, the customer can be served best.
Customer first, priority should be the main aim, as it leaves an impression
on customer.
The customer should not be kept waiting, it leaves a bad impression on
customer.
Before the delivery of the vehicle the customer should be called in advance
and confirmed about his arriving time, so that the SO can ready beforehand.
The customer should be well informed about the documents he is
responsible for (DO), so that the vehicle delivery does not get late or
postponed.
The customer should be well informed about the charges, as later he should
not feel cheated while charging for service.
The SO should be friendly and should explain to the customer about the
vehicle as per his comfort.
Questionnaire :( service)
NAME................................................................
ADDRESS:.................................................................................................................
..................................................................................
PHONE: (R)................................ (M)....................................
GENDER: 1. MALE
2. FEMALE
EDUCATIONAL
QUALIFICATION:.......................................................................
Please rate out of 10:
Rating scale:
1-3: very dissatisfied
4-5: dissatisfied
6-7: neutral
8-9: satisfied
10: very satisfied
Q1. Ease of arranging service visit & Flexibility to accommodate your schedule?
[Appointment as per your desired date and time].
Q2. Service Advisor overall Behavior: Greetings, Helpfulness at Receiving time &
Delivery time, courtesy, friendliness, Responsiveness & Thoroughness of
Explanation of Service Advisor.
Q3. Dealership Facility Feedback: Ease of driving in & out of facility,
Convenience of Dealership location, Cleanliness of dealership & Comfort of
Waiting area.
Q4. Fairness of the charges [Was the Final amount charged at the time of delivery
Close to the initial estimate at the time of reception?]
Q5. Total time required to service your vehicle [Dealer took Appropriate Time].
Q6. Thoroughness of maintenance/repair work performed [Was the
Maintenance/Repair done as per your request?]
Q7. Condition/ cleanliness of vehicle on return [Was the vehicle cleaning done as
Per your request?]