Service Delivery Gaps in Biking Zones

A PROJECT REPORT ON
SERVICE DELIVERY GAPS IN BIKING ZONES
A SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TO

OSMANIA UNIVERSITY, HYDERABAD.
IN PARTIAL FULFILLMENT OF THE SUMMER INTERNSHIP PROGRAMME OF

B.Com (Honours) - 3rd year
By
Name – Sarilla Aditya
Roll No. -128-08-01813
AURORA’S DEGREE & PG COLLEGE

(AFFILIATED TO OSMANIA UNIVERSITY)
CHIKKADPALLY, HYDERABAD – 500 020.
1 SERVICE DELIVERY GAPS IN BIKING ZONES

Certificate
This is to certify that the project work entitled
SERVICE DELIVERY GAPS IN BIKING ZONES
Is the bonafide work done by

NAME- Sarilla Aditya
ROLL NO. – 128-08-01813
as a part of their curriculum in the Department of Commerce
Aurora’s Degree & PG College,
Chikkadpally, Hyderabad-20.
This work has been carried out under my guidance
Dr. Ravi Paturi Course Coordinator Head of Dept.

Principal
External Examiner
Aurora’s Degree & PG College, Chikkadpally, Hyderabad-20.
DECLARATION
This is to inform that I Sarilla Aditya of B.com (Hons)-III, had

completed the project work on “SERVICE DELIVERY GAPS IN BIKING
SERVICE DELIVERY GAPS IN BIKING ZONES 2

ZONES” I in the year 2009- 2010. I have completed the project under the
guidance of Ms. G.LAKSHMI Faculty of Department of Commerce,
Aurora’s Degree College, Chikkadpally, Hyderabad.
I hereby declare that this project report submitted by me to Osmania

University, Hyderabad, is original work done as a part of our academic course
and has not been submitted to any other University or institution for the award
of any degree or diploma.
Sarilla Aditya
128-08-01813
ACKNOWLEDGEMENT
I express my sincere thanks to the staff and management of Aurora’s Degree College
for giving me an opportunity to undertake this project work.

It is my pleasant duty to express my profound gratitude and extreme regards to my
Mentor Ms. G.LAKSHMI without whose learned and able guidance and
encouragement, this work would not have been completed.
I would also like to thank my project External Mentor Mr. KEITH SEBASTIAN and
his staff for their cooperation in completion of my project in the required time.
It‘s an honor to thank Principal Dr. Ravi Paturi and Vice Principal & Head of
Department Mr. Viswanadham Bulusu who has given me this opportunity.
I’m also thankful to all my family members, classmates and friend who helped me in
carrying out this project.
Name : Sarilla Aditya
Roll No : 128-08-1813
TO WHOM SO EVER IT MAY CONCERN

I certify that Sarilla Aditya of B.Com Honors 3rd Year bearing Roll No 128-08-01813
has done the project titled “SERVICE DELIVERY GAPS IN BIKING ZONES” under
my guidance.
Commerce Faculty
(Internal Guide)
SUMMARY

The Indian two wheeler industry ranks first in the world with respect to
manufacturing and volume, the rise of the urban youth, purchasing power and the
proactive financing options to the middle class has spurted the demand for two
wheelers in India, and this growth shall remain on the upswing for time immemorial.
The rise of two wheelers has indeed bought changes in ancillary industries for OEM
manufacturers and Design options, the recent Scooty pep tying with Asian paints for
the colors marks a new distinction in marketing, however it has also bought changes
to the ‘service industry’ which is largely unorganized, although players like Castrol
are betting big on India with their Castrol Bike Zones, much needs to be done to
increase the servicing opportunities for branded biking zones in the Indian market
which is price sensitive,
To many people a bike is their first love, a love that starts a relationship with them
until college and ends when the person takes a car, for this love, are people spending
the right amount for their bikes. The focus of this study is to understand patterns in
consumer behavior and reflect the findings to an understanding of ‘branded biking
zones’. This study focuses on questions like ‘what makes the customer take his bike to
an unorganized outlet even though the bikes is the most valuable’, ‘are customers
price sensitive to Branded outlets in India’ and ‘what factors shall migrate the
customer from a unorganized sector to a branded outlet’.
Establishing a new position for branded outlets forms the main conclusion in this
study, the automobile market in India is over INR 1000000 Million, this exists a huge
potential for ancillary industries and will act as a boon for ‘service outlets’. The two
wheeler segment is increasing at an annual CAGR of 8.5% and its total share is
75.4%
With the industry growing at the rate of the Indian economy, and has 3/4 th
percentage, this segment is hard to miss, the new levels of excellence which are
depicted in other categories like fashion, retail, telecommunications, the service
delivery levels and service quality of this industry is not well captured by the
prospective investors, the focus of this study is also understand ‘where investors can

invest in this segment’ in Hyderabad and ‘how can these service centers be positioned
to mark a crème de la crème excellence in service standards’
The study will also focus on, a comparative analysis of different ‘cc’ of segments, for
instance the ‘entry level’ bikes account for 80% of the sales; this study will
understand the ‘entry level’ segment and pass value judgment into the inconspicuous
consumption that this segment exudes.
This study will also make repeated attempts to understand ‘the cost of ownership and
economics of ownership’, one of the reasons that we shall understand in this study
while debating ‘cost of ownership and economics of ownership’ is in a market like
India which is price sensitive shall have ‘second hand sales’. This second hand sales
act as a disruptive crucible against new purchases, although the financing options
given by banks. This study makes a mention on ‘second hand’ and ‘servicing patterns’
which demarcate the essential intrinsic worth of ‘service outlets’ in India.
Although the premium-bike segment is increasing at an increasing phase, the author

has made considerate efforts to understand the behavioral justifications, which crop up
the need for service in the premium-biking segment.
Finally the author would like to emphasize the role played by these factors which
would help in the formulation of research objectives, the author has made rapid strides
to understand the factors like reliability, assurance, tangibles, empathy and
responsiveness, and although Service is the key we can never forget what Theodore
Levitt emphasized “There is no such thing as service industries. There are only
industries whose service components are greater or less than those of other industries.
Everybody is in service.”
INTRODUCTION
The Indian Two Wheeler market is the largest manufacture of two wheelers in the
world, for a deep understanding, we need to understand the factors that led to this

frantic rise in the manufacture of two wheelers, one of the factor is the huge market
for automobiles, and the other low cost production. The following table enumerates
this further.
1993 - 2009
The Indian two wheeler market is worth INR 1000000 Million, the OEM’s and the
Service components that follow the industry are huge, the growth in the Domestic
two wheeler segment has grown leaps and bounds at an annual CAGR of 8.5%
This presents a great opportunity for the bike manufactures associated with this
segment to garner more sales, this also presents more opportunities for ‘Bike service’
centres to capitalize on the emerging market, there are trends in the approach which
lets us believe that the ‘biking centres’ are going to number 1 launch pads for big
business, investors and has a major role to play in the industry scenario and settings.
The below table shows the dynamics of the Domestic Two wheeler industry, the
Domestic Two wheeler industry has been zooming past its way, the recession in 2008
must have slowed down the consumption, but the future appears very bright for the

Two Wheeler Industry.
Domestic Two Wheeler Industry

2009 7.43
2008 7.25
2007 7.86
2006 7.05 Million (units)

Exponential (Million (units))
2005 6.21
2004 5.36
2003 4.81
2002 4.2
0 1 2 3 4 5 6 7 8 9
The trend shows, that since 2002, there has been a exponential rise of 43% for a 5
year period, this trends shows that ‘bike centres’ which form a majority of the
segment, give the marketer an opportunity to establish ‘branded service’ centres
which would disrupt the practice of the industry and serve the customer to
unprecedented heights.

Need:
The need for this survey came up due to two reasons, the first being my passion for
bikes, and the other the Market potential and the market share, the next reason is the
‘highly unorganized’ segment, and a need gap was felt, for a branded service centre
which could combine the merits of ‘organized sector’ and the ‘unorganized sector’.
A look at the Market share of the two wheeler industry
Segment Share in Total 5- year CAGR
Two Wheelers 75.4% 8.8%
Passenger Vehicles 16.4% 16.7%
Three – Wheelers 4.5% 10.4%
Commercial Vehicles 3.7% 12.6%
By a quick glance of the above, the opportunities for the segment of Two Wheelers
are on the rise, there is immense potential for a ‘bike centre’ to capitalize on the
potential and establish a favorable position in the mindset of the target audience.
Today, the market is dominated by yuppies, young urban professionals, financing
options ready for the youth and the market gap that needs to felt by excellent
service, these factors paved the way for a research based project on the nuances of
service and come with an ‘idea’ which is viable for New Product Development, this
suffices the need for the project on a holistic level.
Breakup of Segment (2009)
5
14 Motorcycles
Scooters
Mopeds
81

Here we analyze the break of the segment, the segmental break up is important in
the realm of ‘bike centers’ as we understand that a majority of the repairs done for
the Motorcycles is from the ‘unorganized sector’ and this entails an opportunity to
convert this segment of people who use the ‘unorganized sector’ to the organized
‘branded outlet’.
The scooters, even in the form of Honda Activa or Scooty depend on the company
owned show rooms, for the mopeds, even though the share of mopeds is very less,
the surveyed show an inclination towards company showrooms.
Scope
The scope of the project shall be enumerated as follows
 Understand the ‘c.c’ of the biking segment and knowing their preferences for
service, their preferences to ‘organized’ and ‘unorganized’ sector, the reasons, they
would prefer going to a service and the consumer behaviour patterns in general.
 Understand where do prospects get their bike services, and how this can be
correlated to a multitude of factors, these factors shall be enumerated in the
following
 To take rapid strides in understanding why people go to a branded outlet, the
factors, the causes, understanding how brand image, reputation, transparency,
Warranty and availability play a very important part in this whole report.
 Understanding the same for ‘unorganized’ sector and presenting the facts in
this research.
 Repeating the same factors for the showrooms.
 Understanding the factors that would lead to the customer switching from the
‘unorganized’ sector to the ‘organized’ and to ‘company owned showrooms’.

 Similarly studying, how the switch happens from a ‘organized’ to the
‘unorganized’, the author has given much detail in the preparation of this report in
this case scenario.
 Understanding if a brand name would influence in making a decision.
Research Methodology
 The research methodology, used is an independent research compromising a
sample of 100 respondents; this has been conducted to residents in Hyderabad as the
research is centered on.
 This has been done on different segments of bikes and varied levels of target
audience and an online methodology has been adopted for the research study.
Limitations of the study
 The limitations of the study are emphasised as follows.
 The respondent profile is short to take decisions regarding the target
audience, positioning and the segmentation
 Individual interviews should have been conducted, to get a more, detailed
overview regarding the ground realities.
 Most of the questions are open ended for ease of research; a few close ended
questions should have been the case.
 Certain parameters to the topics should have been added for depth of
research.

COMPETITIVE PROFILE
CASTROL BIKE ZONE OVERVIEW
History

Castrol is a brand of industrial and automotive lubricants which is applied to a large
range of oils, greases and similar products for most lubrication applications. The
Castrol brand is part of the BP Group of companies, but has retained its separate
identity. It has been lending its name to many private 2 wheeler workshops but it
entered into the 2 wheeler servicing sector by the name Castrol bike zone in the year
2007 and managed to grab 4 percent market share in the initial year of its
commencement.
The following are its areas of strength where it believes that it can be competitive.
Transparency in Operations:
Customer can wait at the swanky waiting lounge in Bike Zone and can see his bike
being serviced by professional and experienced mechanics that have been trained by
the Castrol Training Team. The Spare parts used are genuine and prior approvals
are taken from the customer before commencing any work.
Personalized Attention:
The service advisor ensures that all customers get undivided attention and all their
problems are noted down systematically and solutions provided as per the
problems.
Expert Mechanics:
The Mechanics who treat the bike are extremely professional and trained in their
work.
High Tech Equipments:

High Quality Tools, Ramps and other equipments are used to treat the
customers’ vehicles.
Extreme care is taken to deliver a world class experience to the customer. Currently
Bike Zone has 96 Operational across 18 cities in India, and is rated as one of the top
20 franchising opportunities.
Present Bike Zone Network
Bike Zone Network wants to grow to 220 operating sites by end of 2008.With the
present set of operating stores, Bike Zone network satisfies around 45,000
customers per month which itself speaks of high quality and great brand value
this set up brings to customers. Plans to sell Exclusive Branded Merchandise like
Helmets, Bike Covers, and Security Systems are underway .The products would be
in the Retail market through the Bike Zone Setup by end of April 2008.With
Increased focus and a dedicated team, Bike Zone is poised to touch greater
heights. They currently operate 9 bike zones in Hyderabad at the following places
1. Paradise
2. Kukatpally
3. Moosarambagh
4. Sainik puri
5. Moosapet
6. Malakpet
7. Yousufguda
8. Tirumalgiri
9. Mehdipatnam
Currently the services they are offering are on par with the other
company service centres as they deploy highly skilled and talented workforce and
use automated machinery for dismantling and reassembling. All the Castrol bike
zones in Hyderabad deliver only gold service to their customers which would be
costing around Rs. 350. The silver and the prime services are not being offered here
at Hyderabad but are being offered in other states.
As you can see in the above map they plan to establish a total of 14 service stations
here at Hyderabad.
Marketing & Sales approach
The Castrol bike zone has come up three unique servicing options for its customers.
They are the gold, silver and the prime service options. Currently only the gold
servicing option is available for the customers in Hyderabad. For better approach
towards the customer they have implemented innovative schemes like vehicle pick
up and drop facility to its customers. They have also made sure that the customer
gets a complete transparent billing system and also have introduced a 1 yr guarantee
on all major engine repairs including overhauls.
Market Share

Currently Castrol bike zone holds 17 percent of the total 2 wheeler servicing sector.
This is a very good sign as it is only 3 yrs old. It exhibited a significant progress as it
was able to capture only 4 percent in the initial years of its establishment. It was
positioned between the private workshops and the company service centers and
made a mark with its brand image and managed to seize a share for itself from its
bigger rivals.
A COMPANY SERVICE OUTLET OVERVIEW
Any company service outlet is mainly preferred by consumers who purchase new
bikes and they get the goodies like the free service from these outlets. Free services
are 4 to 6 in number and they only exclude the cost of labour and washing, the costs
of the oils and filters are again borne by the customer. The major income is from
insurance claims and other paid services. These outlets charge heavy amounts for
their paid servicing options and charge a double premium on their spares as they are
packed with the company brand. These outlets hire only trained and well skilled
technicians and again give them training at the company R&D service. For this
reason one can be sure about the service they provide and it is mostly error free as
they employ professionals and use sophisticated machinery and equipment. All the
parts replaced or all the work done at a company service outlet comes with a 1 yr
warrantee. Many people prefer them because of this single reason too.
A PRIVATE WORKSHOP OVERVIEW

Private workshops fall under the unorganized sector and are the market leaders.
You can find a dozen of private workshops in each lane. These workshops are
preferred because of convenience, cost and availability too. Trust also is one of the
important factors. They don’t give any warrantee or guarantee and rely upon the
aftermarket spares. They can be fresher’s or well experienced professionals based on
their experience. Many people prefer them because it is time saving and not a
cumbersome process like the showroom service that have a job card process and
generally take a day’s time to deliver your bike.
OBJECTIVE
“To understand and research the existing bike servicing centers in
their respective categories and establish a position in the same market
based on the same categories “
In the world of services where the two wheeler servicing has become a more
profitable business we can clearly see a large number of players jumping in and
carving a niche for themselves in this area . Not only has the 2 wheeler service
segment the four wheeler service segment also seen many big players like Bosch
enter the market to offer their services. World leading lubricant manufacturer ELF
has entered the heavy truck and agriculture vehicle servicing segment and had made
a special place for itself and has been giving stiff competition to the other players in
that market . In the project through an online survey conducted at xbhp the

responses were collected and the to understand the how these bike servicing centers
perform an extensive field work has also been adopted. The hypothesis would be
whether to establish a new position in the same market based on the same categories
or not. Services are treated as products and they are marketed. Services are
everywhere and every service needs to be marketed. The current project “service
delivery gaps in biking zones “could be related to the following marketing concepts.
According to kotler marketing means ‘satisfying needs and wants through an
exchange processes’ Within this exchange transaction customers will only exchange
what they value (money) if they feel that their needs are being fully satisfied, clearly
the greater the benefit provided the higher transactional value an organization can
charge. So by this definition we can clearly understand that if the customer is
satisfied with the amount of money he spends greater the transactional value and
company or an organization can charge. Marketing of products which are tangible is
easy but services which are intangible it is difficult. There is no specific definition for
the marketing of services but the famous management guru Theodore Levitt
suggested that "instead of talking of 'goods' and of 'services', it is better to talk of
'tangibles' and 'intangibles'’. Levitt also went on to suggest that marketing a physical
product is often more concerned with intangible aspects (frequently the `product
service' elements of the total package) than with its physical. Sales after service are
very important in service sector. Charles Revson made a famous comment regarding
the business of Revlon Inc.: `In the factory we make cosmetics. In the store we sell
hope.' Arguably, service industry marketing merely approaches the problems from
the opposite end of the same spectrum. Now let us look at the various topics under
which the current project can be related to.
The Nature of Services
The Bureau of Labor Statistics reports that the service-producing sector will continue
to be the dominant employment generator in the economy, adding 20.5 million jobs

by 2010. Employment in the service-producing sector is expected to increase by 19
percent over the 2000-2010 periods, whereas manufacturing employment is expected
to increase by only 3 Percent. In fact, manufacturing's share of total jobs is expected
to decline from 13 percent in 2000 to 11 percent in 2010. These numbers and others
have led to a growing interest in the special problems of marketing services.
Service industries are everywhere
The government sector, with its courts, employment services, hospitals, loan
agencies, military services, police and fire departments, postal service, regulatory
agencies, and schools, is in the service business. The private nonprofit sector, with its
museums, charities, churches, colleges, foundations, and hospitals, is in the service
business. A good part of the business sector, with its airlines, banks, hotels,
insurance companies, law firms, management consulting firms, medical practices,
motion picture companies, plumbing repair companies, and real estate firms, is in
the service business. Many workers in the manufacturing sector, such as computer
operators, accountants, and legal staff, are really service providers. In fact, they make
up a "service factory" providing services to the "goods factory." And those in the
retail sector, such as cashiers, clerks, salespeople, and customer service
representatives, are also providing a service. We define a service as follows: A
service is any act or performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product. Manufacturers,
distributors, and retailers can provide value-added services or simply excellent
customer service to differentiate them.
Categories of Service Mix
A company's offerings often include some services. The service component can be a
minor or a major part of the total offering. Five categories of offerings can be
distinguished:
1. Pure tangible good -The offering consists primarily of a tangible good such as
soap, toothpaste, or salt. No services accompany the product.
2. Tangible good with accompanying services - The offering consists of a tangible
good accompanied by one or more services. Levitt observes that "the more
technologically sophisticated the generic product (e.g., cars and computers), the
more dependent are its sales on the quality and availability of its accompanying
customer services (e.g., display rooms, delivery, repairs and maintenance,
application aids, operator training, installation advice, warranty fulfillment). In this
sense, General Motors is probably more service intensive than manufacturing
intensive. Without its services, its sales would shrivel."
3. Hybrid -The offering consists of equal parts of goods and services. For example,
people patronize restaurants for both food and service.
4. Major Service with accompanying minor goods and services - The offering consists
of a major service along with additional services or supporting goods. For example,
airline Passengers buy transportation, the trip includes some tangibles, such as food
and drinks, a ticket stub, and an airline magazine. The service requires a capital-
intensive Good—an airplane—for its realization, but the primary item is a service.
5. Pure service -The offering consists primarily of a service. Examples include baby-
sitting, psychotherapy, and massage. Because of this varying goods-to-service mix, it
is difficult to generalize about services without further distinctions. Here are some
additional distinctions that can be helpful:
• Services vary as to whether they are equipment-based (automated car washes,
vending machines) or people-based (window washing, accounting services). People-
based services vary by whether they are provided by unskilled, skilled, or
professional workers.
• Service companies can choose among different processes to deliver their service.
Restaurants have developed such different formats as cafeteria-style, fast-food,
buffet, and candlelight service. Some services require the client's presence and some
do not. Brain surgery involves the client's presence, a car repair does not. If the client
must be present, the service provider has to be considerate of his or her needs. Thus
beauty salon operators will invest in decor, play background music, and engage in
light conversation with the client.
• Services differ as to whether they meet a personal need (personal services) or a
business need (business services). Service providers typically develop different
marketing programs for personal and business markets. Service providers differ in
their objectives (profit or nonprofit) and ownership (private or public). These two
characteristics, when crossed, produce four quite different types of organizations.
The marketing programs of a private investor hospital will differ from those of a
private charity hospital or a Veterans' Administration hospital.
The nature of the service mix also has implications for how consumers evaluate
quality. For some services, customers cannot judge the technical quality even after
they have received the service.
Distinctive Characteristics of Services
Services have four distinctive characteristics that greatly affect the design of
marketing programs: intangibility, inseparability, variability, and perishability.
INTANGIBILITY: Unlike physical products, services cannot be seen, tasted, felt,
heard, or smelled before they are bought. The person getting a face-lift cannot see the
results before the purchase, and the patient in the psychiatrist's office cannot know
the exact outcome. To reduce uncertainty, buyers will look for evidence of quality.
They will draw inferences about quality from the place, people, equipment,
communication material, symbols, and price that they see. Therefore, the service
provider's task is to "manage the evidence," to "tangibilize the intangible." Whereas
product marketers are challenged to add abstract ideas, service marketers are
challenged to add physical evidence and imagery to abstract offers. Service
companies can try to demonstrate their service quality through physical evidence
and presentation. A hotel will develop a look and a style of dealing with customers
that realizes its intended customer value proposition, whether it is cleanliness,
speed, or some other benefit. Suppose a bank wants to position itself as the "fast"
bank. It could make this positioning strategy tangible through a number of
marketing tools:
1. Place - The exterior and interior should have clean lines. The layout of the desks
and the traffic flow should be planned carefully. Waiting lines should not get overly
long.
2. People- Personnel should be busy. There should be a sufficient number of
employees to manage the workload.
3. Equipment- Computers, copying machines, desks should be and look "state of the
art."
4. Communication material - Printed materials—text and photos—should suggest
efficiency and speed.
5. Symbols - The name and symbol should suggest fast service.
6. Price - The bank could advertise that it will deposit $5 in the account of any
customer who waits in line for more than five minutes. Service marketers must be
able to transform intangible services into concrete benefits. To aid in "tangibilizing
the intangible," Carbone and Haeckel propose a set of concepts called customer
experience engineering. Companies must first develop a clear picture of what they
want the customer's perception of an experience to be and then design a consistent
set of performance and context clues to support that experience. In the case of a
bank, whether the teller dispensed the right amount of cash is a performance clue; a
con-text clue is whether the teller was properly dressed. The context clues in a bank
are delivered by people (humanics) and things (mechanics). The company assembles
the clues in an experience blueprint, a pictorial representation of the various clues.
To the extent possible, the clues should address all five senses. The Disney Company
is a master at developing experience blueprints in its theme parks; so are companies

such as Jamba Juice and Barnes & Noble in their respective retail stores. The Mayo
Clinic has set new standards in the health care industry.
INSEPARABILITY: Services are typically produced and consumed simultaneously.
This is not true of physical goods, which are manufactured, put into inventory,
distributed through multiple resellers, and consumed later. If a person renders the
service, then the provider is part of the service. Because the client is also present as
the service is produced, provider-client interaction is a special feature of services
marketing. In the case of entertainment and professional services, buyers are very
interested in the specific provider. It is not the same concert if Madonna is
indisposed and replaced by Shania Twain, or if a legal defense will be supplied by
John Nobody because antitrust expert David Boies is unavailable. When clients have
strong provider preferences, price is raised to ration the preferred provider's limited
time. Several strategies exist for getting around this limitation. The service provider
can learn to work with larger groups. Psychotherapists have moved from one-on-
one therapy to small-group therapy to groups of over 300 people in a large hotel
ballroom. The service provider can learn to work faster—the psychotherapist can
spend 30 more-efficient minutes with each patient instead of 50 less-structured
minutes and can see more patients. The service organization can train more service
providers and build up client confidence, as H&R Block has done with its national
network of trained tax consultants. Creative artists have also developed techniques
to overcome the limits of inseparability.
VARIABILITY: Because services depend on who provides them and when and
where they are provided, they are highly variable. Some doctors have an excellent
bedside manner; others are less patient with their patients. Some surgeons are very
successful in performing a certain operation; others are not. Service buyers are aware

of this variability and often talk to others before selecting a service provider. Here
are three steps service firms can take to increase quality control.
1. Invest in good hiring and training procedures. Recruiting the right employees and
providing them with excellent training is crucial, regardless of whether employees
are highly skilled professionals or low-skilled workers. Ideally, employees should
exhibit competence, a caring attitude, responsiveness, initiative, problem-solving
ability, and goodwill. Service companies such as FedEx and Marriott empower their
front-line personnel to spend up to Si00 to resolve a customer problem.
2. Standardize the service-performance process throughout the organization. This is
done by preparing a service blueprint that depicts events and processes in a
flowchart, with the objective of recognizing potential fail points. Figure 13.2 shows a
service blueprint for a nationwide floral-delivery organization. The customer's
experience is limited to dialing the phone, making choices, and placing an order.
Behind the scenes, the floral organization gathers the flowers, places them in a vase,
delivers them, and collects payment. Any one of these activities can be done well or
poorly.
3. Monitor customer satisfaction. Employ suggestion and com-plaint systems,
customer surveys, and comparison shopping. General Electric sends out 700,000
response cards a year asking households to rate its service people's performance.
Citibank checks continuously on measures of ART (accuracy, responsiveness, and
timeliness). Firms can also develop customer information databases and systems to
permit more personalized, customized service.
PERISHABILITY: Services cannot be stored. Perishability is not a problem when
demand is steady. When demand fluctuates, service firms have problems. For
example, public transportation companies have to own much more equipment
because of rush-hour demand than if demand were even throughout the day. Some
doctors charge patients for missed appointments because the service value exists

only at that point. Several strategies can produce a better match between demand
and supply in a service business.
On the demand side:
Differential pricing will shift some demand from peak to off-peak periods.
Examples include low early evening movie prices and weekend discount prices for
car rentals. Nonpeak demand can be cultivated. McDonald's pushes breakfast
service, and hotels promote mini-vacation weekends.
On the supply side: Part-time employees can be hired to serve peak demand.
Colleges add part-time teachers when enrollment goes up, and restaurants call in
part-time servers when needed. a Peak-time efficiency routines can be introduced.
Employees perform only essential tasks during peak periods. Paramedics assist
physicians during busy periods. Increased consumer participation can be
encouraged. Consumers fill out their own medical records or bag their own
groceries. Shared services can be developed. Several hospitals can share medical-
equipment purchases. Facilities for future expansion can be developed. An
amusement park buys surrounding land for later development. Complementary
services can be developed to provide alternatives to waiting customers, such as
cocktail lounges in restaurants and automatic teller machines in banks. Reservation
systems are a way to manage the demand level. Airlines, hotels, and physicians
employ them extensively.
Marketing Strategies for Service Firms
At one time, service firms lagged behind manufacturing firms in their use of
marketing because they were small, or they were professional businesses that did
not use marketing, or they faced large demand or little competition. This has
certainly changed. "Marketing Memo: A Service Marketing Checklist" outlines the
questions top service marketing organizations should be asking.

A Shifting Customer Relationship
Not all companies, however, have invested in providing superior service, at least not
to all customers. Business Week, in its October 23, 2000, issue, carried a cover story
called "Why Service Stinks," based in part on the fact that from 1994 to 2000,
customer satisfaction in the United States dropped 12.5 percent for airlines, 8.1
percent for banks, 6.5 percent for stores, and 4 percent for hotels. Customers
complained about inaccurate information; unresponsive, rude, or poorly trained
personnel; and long wait times. And the picture doesn't look any rosier now.
Customer service complaints are on the rise, even though many complaints never
actually reach a live human being.
In former times, service companies held out a welcoming hand to all customers, but
these companies now have so much data on individuals that they are able to classify
their customers into profit tiers. So service is not uniformly bad for all customers.
Airlines, hotels, and banks all pamper good customers. Big spenders get special
discounts, promotional offers, and lots of special service. The rest of their customers
get higher fees, stripped-down service, and at best a voice message to answer
inquiries. Financial services giants have installed special software that tells them—in
an instant— when a lucrative customer is on the phone. Such systems immediately
send the call ahead of dozens—even hundreds—of other callers who must wait
while the big spender gets special attention. Charles Schwab's best customers get
their calls answered in 15 seconds; other customers can wait 10 minutes or more.
Sears sends a repairperson to its best customers within two hours; other customers
wait four hours. This shift from a customer service democracy to a meritocracy is
also a response to lower profit margins resulting from customers becoming more
price-driven and less loyal. Companies are now driven to seek ways to squeeze more
profit out of the different customer tiers. Firms have decided to raise fees and lower

service to customers who barely pay their way, and to coddle big spenders to retain
their patronage as long as possible.
The diagram showing the three types of marketing in service industries
Managing Service Quality
The service quality of a firm is tested at each service encounter. If retail clerks are
bored, cannot answer simple questions, or are visiting with each other while
customers are waiting, customers will think twice about doing business again with
that seller.
Customer Expectations
Customers form service expectations from many sources, such as past experiences,
word of mouth, and advertising. In general, customers compare the perceived
service with the expected service. If the perceived service falls below the expected
service, customers are disappointed. If the perceived service meets or exceeds their

expectations, they are apt to use the provider again. Successful companies add
benefits to their offering that not only satisfy customers but surprise and delight
them. Delighting customers is a matter of exceeding expectations.
As our project deals with the service delivery gaps now let us look at the service
delivery modules given by Parasuraman, Zeithaml.
The Service Delivery Gaps:
Parasuraman, Zeithaml, and Berry formulated a service-quality model that
highlights the main requirements for delivering high service quality.
1. Gap between consumer expectation and management perception
-Management does not always correctly perceive what customers want. Hospital
administrators may think that patients want better food, but patients may be more
concerned with nurse responsiveness.
2. Gap between management perception and service-quality specification -
Management might correctly perceive customers' wants but not set a performance
standard. Hospital administrators may tell the nurses to give "fast" service without
specifying it in minutes.
3. Gap between service-quality specifications and service delivery - Personnel
might be poorly trained, or incapable of or unwilling to meet the standard; or they
may be held to conflicting standards, such as taking time to listen to customers and
serving them fast.
4. Gap between service delivery and external communications - Consumer
expectations are affected by statements made by company representatives and ads. If
a hospital brochure shows a beautiful room, but the patient arrives and finds the

room to be cheap and tacky looking, external communications have distorted the
customer's expectations.
5. Gap between perceived service and expected service - This gap occurs when
the consumer misperceives the service quality. The physician may keep visiting the
patient to show care, but the patient may interpret this as an indication that
something really is wrong.
Based on this service-quality model, these researchers identified the following five
determinants of service quality, in order of importance.
1. Reliability -The ability to perform the promised service dependably and
accurately.
2. Responsiveness -The willingness to help customers and to provide prompt
service.
3. Assurance -The knowledge and courtesy of employees and their ability to convey
trust and confidence.
4. Empathy -The provision of caring, individualized attention to customers.
5. Tangibles -The appearance of physical facilities, equipment, personnel, and
communication materials.

The service quality model

The service quality attributes
Managing Service Brands
Some of the world's strongest brands are services—consider financial service leaders
such as Citibank, American Express, JP Morgan, HSBC, and Goldman Sachs. Several
hospitals have attained "megabrand" reputations for being the best in their field,
such as the Mayo Clinic, Massachusetts General, and Sloan-Kettering. These
hospitals could open clinics in other cities and attract patients on the strength of their
brand reputation. As with any brand, service brands must be skillful at
differentiating themselves and developing appropriate brand strategies.
Differentiating Services
Service marketers frequently complain about the difficulty of differentiating their
services. The deregulation of several major service industries—communications,

transportation, energy, banking—has resulted in intense price competition. To the
extent that customers view a service as fairly homogeneous, they care less about the
provider than the price.
Service offerings, however, can be differentiated in many ways. The offering can
include innovative features. What the customer expects is called the primary service
package. Vanguard, the second-largest no-load mutual fund company, has a unique
client ownership structure that lowers costs and permits better fund returns.
Strongly differentiated from many competitors, the brand grew through word of
mouth, PR, and viral marketing. The provider can add secondary service features to
the package. In the airline industry, various carriers have introduced such secondary
service features as movies, merchandise for sale, air-to-ground telephone service,
and frequent-flier award programs. Marriott is setting up hotel rooms for high-tech
travelers who need accommodations that will support computers, fax machines, and
e-mail. Many companies are using the Web to offer secondary service features that
were never possible before; conversely, other service providers are adding a human
element to combat competition from online businesses. This is happening in many
large drugstores. As in-store pharmacies see competition from low-cost online mail-
order drugstores, they are playing up the presence of on-site health care
professionals. For instance, Brooks Pharmacy is establishing "RX Care Centers" in
many of its remodeled stores. There are private consulting rooms where pharmacists
can speak at length with patients about complicated prescription benefit plans,
potentially dangerous drug interactions, and embarrassing subjects like urinary
incontinence. CVS is giving its pharmacists more time to speak to customers by
investing in machines that count pills and fill pill bottles, a time-consuming and
tedious task for most pharmacists.
Sometimes the company achieves differentiation through the sheer range of its
service offerings and the success of its cross-selling efforts. The major challenge is
that most service offerings and innovations are easily copied. Still, the company that

regularly introduces innovations will gain a succession of temporary advantages
over competitors.
Developing Brand Strategies for Services
Developing brand strategies for a service brand requires special attention to
choosing brand elements, establishing image dimensions, and devising the branding
strategy.
CHOOSING BRAND ELEMENTS
The intangibility of services has implications for the choice of brand
elements. Because service decisions and arrangements are often made away from the
actual service location itself brand recall becomes critically important. In such cases,
an easy-to-remember brand name is critical.
Other brand elements—logos, symbols, characters, and slogans—can also "pick up
the slack" and complement the brand name to build brand awareness and brand
image. These other brand elements often attempt to make the service and some of its
key benefits more tangible, concrete, and real—for example, the "friendly skies" of
United, the "good hands" of Allstate, and the "bullish" nature of Merrill Lynch.
Because a physical product does not exist, the physical facilities of the service
provider—its primary and secondary signage, environmental design and reception
area, apparel, collateral material, and so on—are especially important. Al l aspects of
the service delivery process can be branded, which is why Allied Van Lines is
concerned about the appearance of its drivers and laborers; why UPS has developed
such strong equity with its brown trucks, and why Doubletree hotels offers warm,
fresh-baked cookies as a means of symbolizing care and friendliness.
ESTABLISHING IMAGE DIMENSIONS

Organizational associations—such as perceptions about the people who make up the
organization and who provide the service—are likely to be particularly important
brand associations that may affect evaluations of service quality directly or
indirectly. One particularly important association is company credibility and
perceived expertise, trustworthiness, and likability Service firms must therefore
design marketing communication and information programs so that consumers
learn more about the brand than the information they get from service encounters
alone. These programs may involve marketing communications which may be
particularly effective at helping the firm to develop the proper brand personality. In
2003, State Farm launched a major new image-building marketing campaign.
DEVISING BRANDING STRATEGY
Finally, services also must consider developing a brand hierarchy and brand
portfolio that permits positioning and targeting of different market segments.
Classes of service can be branded vertically on the basis of price and quality. Vertical
extensions often require sub-branding strategies where the corporate name is
combined with an individual brand name or modifier. In the hotel and airlines
industries, brand lines and port-folios have been created by brand extension and
introductions. For example, Delta Airlines brands its business-class service as
Business Elite, its frequent-flier program as Sky Miles, its in-flight magazine as Sky
magazine, its airport lounges as Crown Room Clubs, and its short-haul airlines as
Song. Hilton Hotels has a portfolio of brands that includes Hilton Garden Inns to
target budget-conscious business travelers and compete with the popular Courtyard
by Marriott chain, as well as DoubleTree, Embassy Suites, Homewood Suites, and
Hampton Inn. The circus Cirque du Soleil has adopted a very strict branding
strategy.

TOOLS AND ANALYSIS
SEGMENT OF THE BIKE C.C
CALCULATION OF MEAN AND STD. DEVIATION
Cases
Included Excluded Total
N Percent N Percent N Percent
CC * Segment 4 100.0% 0 0% 4 100.0%
Fig 1.0
CC
Segment Mean N Std. Deviation

100-135 56.00 1 .
135-150 18.00 1 .
150-250 16.00 1 .
250> 10.00 1 .
Total 25.00 4 20.944
Fig 1.1
CALCULATION OF T TEST
N Mean Std. Deviation Std. Error Mean

CC 4 25.00 20.944 10.472
Fig 1.2

Test Value = 0
95% Confidence
Interval of the
Mean Difference
t df Sig. (2-tailed) Difference Lower Upper
CC 2.387 3 .097 25.000 -8.33 58.33
Fig 1.3
The above statistics show that the N=4, with a sample size of 100, no omission has
been made in choosing the sample size, during the course of the study.
The prospects surveyed, show that a majority of 56% used the segment of 100 – 135
followed by 18% for 135 – 150 segment, the 150 – 250 segment garnered 16% which
the 250 and above were 10%, Keeping a sample size of 100, the mean is 25%, over a
look at the analysis, it is indicative that the 100-135 CC bikes are used by a majority
of people with a mean of over 56%, the market size of the bikes is huge compared to
the other segments.
The standard Deviation from the mean stands at 20.944 percentage points whereas
the standard error mean is at 10.472
We have conducted a One Tail test to emphasize, where t is 2.387 and degree of
frequency is 3 (which is N-1), the mean difference of 25 shows that the 2 tailed test of
.097 which is skewed taking an input at 0.
We have decided to use a 95% level of confidence as a standard, with a lower level of
confidence at -8.33 and an upper confidence level of 58.33
Inferences
1) There is a greater evidence of 100-135 C.C bikes to dominate the market,
having the 100 – 135 CC as our core segment makes more analysis for reformed
judgement, a look at the upper confidence level shows 58.33

2) There is an ample need for positioning and targeting the segment of 100 – 135
CC which acts as a majority, however they are indications that the premium segment
might increase,
3) More into the analysis would however, show us the research on concepts like,
which CC bike goes to which service and which aspects of the bike would be
preferred.
4) Much of the analysis further would draw inferences to brand name and
switching costs involved in moving from a lower level of orbit to a higher level of
orbit, thereby emphasizing statistical facets and tendencies.
NATURE OF SERVICE
Cases
Natval * Nature 3 75.0% 1 25.0% 4 100.0%
Fig 1.4
Nature Mean N Std. Deviation

Unorganized 42.00 1 .
Branded 10.00 1 .
Company Showrooms 48.00 1 .
Total 33.33 3 20.429
Fig 1.5

One-Sample Statistics
Std. Error
N Mean Std. Deviation Mean
Natval 3 33.33 20.429 11.795
Fig 1.6
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
Natval 2.826 2 .106 33.333 -17.41 84.08
Fig 1.7
The above shows the three factors which have been taken for the summarization, the
three ‘nature of services’ indicate unorganized players, Castrol bike zones and
company showrooms, by the above we infer that N= 3 and the mean is 33.33%, the
standard deviation is 20.429 and the standard error of mean is 11.795
The value of the t = 2.826 with a degree of frequency (N-1), the value for the 2 tailed
for the output of 0 is .106 and the mean difference is 33.333,
95% level of confidence is used, the lower interval of difference is -17.41 and the
upper range of difference is 84.08
Inferences
1) From the above, we can infer that the percentage of people using the
unorganized and company showrooms are higher, in the next we shall undertake a
chi square test to prove the same.
2) The percentage who use Castrol bike zones are lower, this presents a greater
opportunity for the marketer to focus on the core issues relating to branding and
positioning and taking the value of the service delivery to higher levels
3) With a standard deviation of 20.429 and a standard error of 11.795, the degree
of relevance to the population would not cause a higher deal, if participants shifted
their service, and one of the limitation of the study, is that the study has not

surveyed the switching costs due to lack of scope in the study.
CORELATION BETWEEN SEGMENT OF THE BIKE AND NATURE OF
SERVICE
Pearson’s Coefficient of Correlation and Spearman’s Coefficient of Correlation
Natnos Sernos
Natnos Pearson 1 .326
Correlation
Sig. (2-tailed) .789
N 4 3
Sernos Pearson .326 1
Correlation
N 3 3
Fig 1.8
Natnos Sernos
Spearman's rho Natnos Correlation 1.000 -.500
Coefficient
Sig. (2-tailed) . .667
N 4 3
Sernos Correlation -.500 1.000
Coefficient
Sig. (2-tailed) .667 .
N 3 3
Fig 1.9
In the above table, where N = 4 the Pearson coefficient of correlation for nature of
service 1.0 and for the segment of Bike stood at 0.326 where N = 3 and the sigma 2
tail test stood at 0.789.
Inferences
A look at the pearson’s and spearman’s coefficient of correlation indicates

1) There is a low correlation between the Segment of Bike and the Nature of
Service, which the 2 tailed significance of higher correlation, there is a positive
correlation between Segment of Bikes and Nature of Service
2) According to the spearman’s, there exists a coefficient of correlation between
the 2 tailed values, although a negative correlation exists between the nature of
service and segmentation
3) According to the Pearson’s, the percentage of prospects with a 100-135 CC
bike visited the unorganized sector and the showrooms.
4) There is a higher role for brands like Castrol to play to target the market,
which is bound by competition from the unorganized sector and showrooms.
FACTORS FOR CHOOSING UNORGANISED SECTOR
Cases
Unorg * Nature 4 100.0% 0 .0% 4 100.0%
Fig 2.0
Unorg
Cost 41.00 1 .
Trust 32.00 1 .
Convenience 12.00 1 .
Reach 15.00 1 .
Total 25.00 4 13.832
Fig 2.1
Std. Error
Unorg 4 25.00 13.832 6.916

Fig 2.2
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
Unorg 3.615 3 .036 25.000 2.99 47.01
Fig 2.3
In the above table, we find that the N=4, Cost and Trust seem to the main motivation
factors for a prospect to choose the Unorganized sector, we might not be surprised to
see that India is a price sensitive market and this also reflects in the decision for bike
service centres.
The mean for hundred samples is 25, with a standard deviation of 13.832 and
standard error mean of 6.916,
Analyzing the one-sample test, we have t as 3.615, with a degree of frequency as 3
(N-1) and the 2 tailed analysis stands at 3, the mean difference is 25
A 95% level of confidence is taken, a lower interval of 2.99 and a higher level of 47.01
Inferences
1) This shows, that a majority of the prospects do look at the unorganized sector
with Cost, but the astonishing fact that they trust the unorganized sector is only
prevalent in this Industry
2) The organized players can take the cues from low cost and trust and build a
brand and establish a position having both these attributes
3) The reach of the unorganized sector is huge, however this does not reflect in
the study or although, the reach of the unorganized sector is huge, the prospects
tend to look at the cost and trust before embarking on a decision for service.
4) Unorganized shops have their base in almost every nook and corner, still are
not rated by prospects as a major force, while comparing to cost and trust, reach and
convenience do not mark a priorities.

FACTORS FOR CHOOSING BRANDED OUTLETS
Cases
Branded Nature 4 100.0% 0 .0% 4 100.0%
Fig 2.4
Branded
Brand 14.00 1 .
Transparency 23.00 1 .
Warranty 46.00 1 .
Reach 7.00 1 .
Total 22.50 4 16.980
fig 2.5
Std. Error

Branded 4 22.50 16.980 8.490
Fig 2.6
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
Branded 2.650 3 .077 22.500 -4.52 49.52
Fig 2.7
Analyzing the table we understand the four parameters that prospects make
decisions while choosing a branded outlet. The mean stands at 22.50, a very close

scrutiny of the factors transparency and warrantee do indicate that their frequencies
are above the mean
A standard deviation of 16.980 and a standard error mean of 8.490 take us having the
look at the inferences .the one sample test shows the value of t at 2.650 with a degree
of frequency (N-1). It is quite astonishing to see the two tailed value at 0.077. this can
only happen with a lower confidence interval of difference .with the mean difference
of 22.50 and a lower confidence interval indicating -4.52 and the upper interval of
49.52
Inferences
1. Going through the prospects survey although the brand image is emphasized
during the purchase decision a majority of the respondents do not go to the branded
outlets because of the brand image. There are two reasons for this, the first being
customers are much aware of the bike and the biking needs and the second being
biking service could as well be a commodity in the Indian market.
2. Transparency ranks over brand image and reach this is due to a simple fact
that people want original spares for their bikes and billing to billing to be true .
3. A warranty of 46 is nearly double that of the mean this indicates that
warranty is a pressing need, a majority of the prospects looked as warranty as a need
gap for trust, warranty could also translate to brand image and transparency of the
biking system.
4. Although the reach for the Castrol biking zones is not as high as the
unorganized, participants have checked it low along the responding factors.
FACTORS FOR CHOOSING SHOWROOM SERVICING

Cases
Showroom * Nature 4 100.0% 0 .0% 4 100.0%
Fig 2.8
Showroom
Brand 20.00 1 .
Transparency 17.00 1 .
Warranty 56.00 1 .
Reach 7.00 1 .
Total 25.00 4 21.401
Fig 2.9
Std. Error
Showroom 4 25.00 21.401 10.700
Fig 3.0
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
Showroom 2.336 3 .102 25.000 -9.05 59.05
Fig 3.1
Analyzing the table we understand the four parameters that prospects make
decisions while choosing a branded outlet. The mean stands at 25.00, a very close
scrutiny of the factors transparency and warrantee do indicate that their frequencies
are above the mean
A standard deviation of 21.401and a standard error mean of 10.700 take us having
the look at the inferences .the one sample test shows the value of t at 2.336 with a

degree of frequency (N-1). It is quite astonishing to see the two tailed value at 0.102.
This can only happen with a lower confidence interval of difference .with the mean
difference of 25 and a lower confidence interval indicating -9.05 and the upper
interval of 59.05
Inferences
1. Going through the prospects survey although the brand image is emphasized
during the purchase decision a majority of the respondents do not go to the branded
outlets because of the brand image. There are two reasons for this, the first being
customers are much aware of the bike and the biking needs and the second being
biking service could as well be a commodity in the Indian market.
2. brand image ranks over Transparency and reach this is due to a simple fact
that people want original spares for their bikes and billing to billing to be true .
3. A warranty of 56 is nearly double that of the mean this indicates that
warranty is a pressing need, a majority of the prospects looked as warranty as a need
gap for trust, warranty could also translate to brand image and transparency of the
biking system.
4. Although the reach for the showroom service is not as high as the
unorganized, participants have checked it low along the responding factors.
TECHNICAL KNOWHOW OF THE PALYERS

Cases
Knowhow values
3 75.0% 1 25.0% 4 100.0%
* Knowhow
Fig 3.2

Know how Mean N Std. Deviation
Unorganised 45.00 1 .
Castrol bike zone 19.00 1 .
Showroom mechanics 36.00 1 .
Total 33.33 3 13.204
Fig 3.3
Std. Error
knowhowvalues 3 33.33 13.204 7.623
Fig 3.4
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
knowhowvalues 4.373 2 .049 33.333 .53 66.13
Fig 3.5
For N equals 3 for a sample of 100 the mean is 33.33 percent. this further indicated
that any factor above the mean will be regarded on par with the upper limit of
confidence level 66.13 for t equals 4.373 and the standard deviation at 13.204 with an
standard error of 7.623 the following can be inferred .

1. The count for the unorganised sector stands at 45 and the branded mechanics
stand at 19, the showroom mechanics stand at 36 .
2. Since speed is important and the need to avail faster services cheaper comes
into the way
3. cheaper entry level service centres find their way into the market and the
private mechanic maintains the good rapport with the prospect
4. Although a branded showroom throws promises that they hire only qualified
technicians to handle the prospects bike it has failed with only 19 percent giving it a
go. This may be because of the perceptions of the common man who thinks brands r
just money minting companies.
5. This presents a very good opportunity for the biking centres in Hyderabad
this is because Castrol which has earmarked levels of service has not been able to
gauge the perceptions of the
FACTORS WHICH WOULD INFLUENCE A SWITCH FROM UNORGANISED
TO A BRANDED OUTLET

Cases
Private to brand values
4 100.0% 0 .0% 4 100.0%
* private to brand
Fig 3.6

Private to Brand values
PtoB Mean N Std. Deviation
cost 16.00 1 .
conviennience 8.00 1 .
betterservice 59.00 1 .
guatantee/warantee 17.00 1 .
Total 25.00 4 23.022
Fig 3.7
Std. Error
privatetobrandvalues 4 25.00 23.022 11.511
Fig 3.8
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
privatetobrandvalues 2.172 3 .118 25.000 -11.63 61.63
Fig 3.9
This study understands the consumer behavioural patterns in shifting from a
unorganized segment to a branded outlet, this is important to understand, if a new
brand were to be established, the customer touch points go a long way in finding out
the Unique Selling Proposition.
In the above, we see a significant change, with Better Service topping the list, we
have already mentioned in the introduction, that service in this segment has not
been fully explored.
Inferences

1) Service in this category has not been explored unlike telecom, retail etc, We
see an astonishing trend towards better service, people want the service, we shall
undertake another hypothesis to find out, whether prospects would be willing to
pay for better service
2) There is another mode of thought, which establishes the link between, a shift
from Unorganized to Castrol biking zones, where the same prospects go to the
unorganized for a majority of the times, and the prospects rated trust for the
unorganized sector.
3) Much of the analysis would be imperative, if we capture the trend of a better
service with that of perceptions, there might be theoretical evidence that leads a
better service to a perception and biased friendliness, ambience play and important
part in this role.
4) Among the respondent surveyed, there has been very less indications to state
that cost is not an important factor, convenience is not an important factor, and we
infer the prospect is willing to pay for service.
SWITCH FROM A HIGHER LEVEL OF ORBIT TO A LOWER LEVEL

Cases
emergency values
4 100.0% 0 .0% 4 100.0%
* emergencyhtol
Fig 4.0

Emergency values
Emergencyhtol Mean N Std. Deviation
Cost 16.00 1 .
Convenience/time saving 23.00 1 .
Trust 15.00 1 .
Reach/availability 46.00 1 .
Total 25.00 4 14.445
Fig 4.1
Std. Error
emergencyvalues 4 25.00 14.445 7.223
Fig 4.2
One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
emergencyvalues 3.461 3 .041 25.000 2.01 47.99
Fig 4.3
In the above table of emergency values the standard deviation stood at 14.445 where
N= 4 and the error of standard mean is 7.223. In the one sample test mean difference
is 25.00.
This might as well have been a self explanatory view point, if not for the later part of
the conclusions.
Inferences
1) Reach plays a very important part in emergency, 45% of the respondents said
that they would look for reach as an important factor during emergency

2) A look at the emergencies that happen frequently, a brand should have
service centres in areas which are accessible and where the reach is there for the
customer, this helps the business in tapping the potential of emergencies
3) A look at the convenience has a strong correlation with reach, and
convenience tops the list next to reach and availability
4) The customer does not look at cost and trust and rates, the same, one of the
important things that showrooms can take care is to provide quick service for the
emergencies and charge the customer extra for this effort.
SWITCH FROM A BRANDED SERVICE CENTRE TO A SHOWROOM SERVICE

Cases
valuesBtoSSC *
4 100.0% 0 .0% 4 100.0%
brandedtoSSC
Fig 4.4
brandedtoSSC Mean N Std. Deviation

cost 20.00 1 .
trust 40.00 1 .
guarantee/warantt 27.00 1 .
yavailability of outlets 13.00 1 .
Total 25.00 4 11.518
Fig 4.5
Std. Error
valuesBtoSSC 4 25.00 11.518 5.759
Fig 4.6

One-Sample Test
Test Value = 0
95% Confidence
Interval of the
Mean Difference
valuesBtoSSC 4.341 3 .023 25.000 6.67 43.33
Fig 4.7
In the above table Branded to showroom where N = 100% , standard deviation is
11.518 and standard error is 5.759.
This table explains the factors for a prospect to move from a branded outlet to a
showroom, usually this does happen, as they are different segments in it
Inferences
1) A Majority of the prospects surveyed emphasize on trust as a major factor
that would help them move from a branded outlet to a showroom, today people still
believe in the power of showrooms as they ultimately service the respondent
2) Guarantees and Warrantees will help the customer in getting service for a
prescribed time for a fee; the challenge for branded showrooms is to give an
warranty service on par with that on the showroom for retaining majority of the
clients.
3) Generally the showroom is costlier than the branded centre, and this position
should be maintained for customer satisfaction
4) 10% of the respondents stated that they would move to a Company
showroom due to the unavailability of branded service, centres, the company should
try to increase the distribution and include channels for a holistic service delivery.
Does having a brand name influence your decision

Cases
brand influence
2 66.7% 1 33.3% 3 100.0%
brand values
Fig 4.8
Std. Std. Error
N Mean Deviation Mean

brandvalues
2 50.00 43.841 31.000
Brandval 0 . . .
Fig 4.9
Test Value = 0
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
brandvalues 1.613 1 .353 50.000 -343.89 443.89
Fig 5.0
Findings

1) A majority of the respondents, indeed responded that they would go to a
branded place, rather than a unbranded place, this comes as a surprise that,
numerous findings in the earlier questions,
2) This place an opportunity for the branded service centres to understand the
notion that brand places a very important role in the servicing decision; however the
brand should be earmarked, by service qualities, convenience and availability.
3) One of the important roles for a service showroom to place a greater
emphasize on branding and provide solutions for improving the brand image.
4) One of the major opportunities, for the unorganized sector is to increase the
relationship with the customers,
5) On a general scale, due to behavioural mechanisms, people might state that
they use branded products; this is evident in the vast disparities in the way people
understand.
Unorganized and Castrol Bike Zones
Correlation between unorganized sector and Castrol bike zone users.
Unorganized Castrol bike zone

Unorganized Pearson Correlation 1 -.402
N 4 4
Castrol bike Pearson Correlation -.402 1
zone Sig. (2-tailed) .598
N 4 4
Fig 5.1
Adjusted Std. Error of

Model R R Square R Square the Estimate
1 .402 a .161 -.258 15.515

Fig 5.2
ANOVA
Sum of
Model Squares df Mean Square F Sig.
1 Regression 92.588 1 92.588 .385 .598 a
Residual 481.412 2 240.706

Total 574.000 3
Fig 5.3
Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 32.361 14.179 2.282 .150
Castrolbz -.327 .528 -.402 -.620 .598
Fig 5.4
In the above table of Unorganized and Castrol bike zones , unorganized Pearsons
correlation sigma is N = 4 and ANOVA F- test value is 0.385 and sigma is 0.598.
The analysis here between, the factors of Unorganized sector and Branded
outlets cannot be over emphasized, there is a very strong correlation between the
Castrol outlets and the unorganized sector
Let us look at their differences
1) The consumer behaviour patterns are different from a Castrol biking zones
for the consumer behaviour shows that people prefer a Castrol biking zone for a
premium product, they are ready to pay a price and do everything to keep their
bikes under bay, one of the reasons that a Castrol rules of the unorganized is its
presence of perception regarding the user experience and the knowledge of the
service centre, it is however astonishing to see, that even though being on a
unbranded platform, the unorganized shops are very high in publicity and
visibility, they are also preferred in a city, where the maximum reach and
availability reaches the maximum extend.

2) This study also has gotten various responses to why people prefer, there is
a strong correlation between the knowledge used by the Castrol biking centres
and the unorganized sector, there are instances, where they had chosen the
unorganized sector to rate more in knowledge, then the like.
3) The biggest factor is the preference towards the biking centre, not because
of cost, but because of the reach of its distribution outlets, this became the main
contributing factor for the success of the biking zones
4) A two tailed regression analysis, with a 95% confidence level shows that in
spite of the number of players using the unorganized player, there exists a higher
notion that, when the players switch from a lower category to a higher category,
they would make the switch from the unorganized sector to Castrol bike zones.
Castrol Bike Zones and Company Owned Showrooms
Correlation between Castrol bike zone and company owned showrooms

Castrolbz Showroom
Castrolbz Pearson 1 .959 *
Correlation
N 4 4
Showroom Pearson .959 * 1
Correlation
N 4 4
FiFig 5.1

1 .959 .921 .881 7.387
Fig 5.2

ANOVA
Sum of
1 Regression 1264.874 1 1264.874 23.182 .041
Residual 109.126 2 54.563
Total 1374.000 3
Fig 5.3
Coefficients
1 (Constant) -2.208 6.751 -.327 .775
Castrolbz 1.209 .251 .959 4.815 .041
Fig 5.4
In the above table Castrol Bike Zones and Company Owned Showrooms where
Pearson’s correlation sigma N = 4, ANOVA mean square is 54.563 , F- Test is 23.182
and Sigma is 0.041.
A look at the Correlation and Regression places us on a war footing to understand
whether there is any correlation between a Castrol bike zones and a company owned
show rooms
There is a higher degree of correlation with the general proposition
1) The showrooms run due to two reasons, one is the guarantee and conditions
given by the company, and second, people feel more secure
2) People think that the company showrooms use genuine parts, they care for
the bikes and respondents do not mind giving it to a company outlet.
3) The Castrol bikes also have the same mindset, use the genuine products and
they have their own loyalty programs,
4) The difference between a Castrol and a company owned showroom is due to
the following factors, one among them is a Castrol showroom although will have the

same features, cost and service levels, those who are using Castrol biking centers
will not use a company owned showroom
5) The other important factors is when we study if the person would like to
make a change from Castrol biking zones to a Company owned showrooms.
Unorganized and Showroom
Correlations between un organized sector and showroom

service
Unorg Showroom
Unorg Pearson 1 -.404
Correlation
N 4 4
Showroom Pearson -.404 1
Correlation
N 4 4
Fig 5.5
Model Summary

1 404 .163 -.255 23.974
Fig 5.6
ANOVA
Sum of
1 Regression 224.531 1 224.531 .391 .596 a
Residual 1149.469 2 574.734
Total 1374.000 3
Fig 5.7
Coefficients
1 (Constant) 40.636 27.740 1.465 .281
Unorg -.625 1.001 -.404 -.625 .596

Fig 5.8
In the above table Unorganised and showroom where Pearson’s correlation sigma
N = 4, ANOVA mean square is 574.734, F- Test is 0.391 and Sigma is 0.596.
There are different contracting qualities in the roles played by unorganized sector
and showrooms,
They are also similar to the differences played by the Castrol and unorganized, the
major roles played by the Castrol biking centres and unorganized sectors.
1) The showrooms are very different, initially the person might have a go sign
with showrooms due to warranty and service delivery, but a majority of the persons
have changed their service from a showroom to a unorganized sector
2) The various, services given by the showrooms, do not still go under the cost
efficient unorganized sector
3) The unorganized sector also plays a role on trust, the biker develops a
relationship with the unorganized sector and this trust goes a long way into
developing a base
4) One of the concerns noted by the bikers is the genuinely products which
make way for the unorganized sector to take a toll on.
Segment of the Bike and Knowledge of the Servicing Centre
Correlation between segment of the bike and technical knowhow of the players
Segvals Knowhow

Segvals Pearson Correlation 1 .736
N 4 3
Know Pearson Correlation .736 1
how
N 3 3
Fig 5.9
ANOVA
Sum of
1 Regression 550.222 1 550.222 1.181 .474 a
Residual 465.778 1 465.778
Total 1016.000 2
Fig 6.0
Coefficients
1 (Constant) -11.874 40.492 -.293 .818
Knowhow 1.256 1.156 .736 1.087 .474
Fig 6.1
It is pretty surprising to see, that these differences
1) The knowledge by the unorganized sector beats the Castrol biking zones and
company showrooms, it’s surprising to see this trend continue in a market like
Hyderabad
2) The other reason for the unorganized sector to have a low perception is
related to the genuinity of the products and spare parts, if these are corrected the
Castrol biking zones will have to take a beating at the market
3) The company owned showrooms have been vouching bikers not to use the
products by the unorganized sector, and this has done in vain, the unorganized

sector still understands the role played by perception in this market place for
knowledge.
In the above table Unorganised and showroom where Pearson’s correlation sigma
N = 4, the value is 0.736 and N= 3 the value is 0.474. ANOVA mean square is 574.734,
F- Test is 0.391 and Sigma is 0.596.
Segmentation of the Bike to influence of the Brand Name
ANOVAb
Sum of
1 Regression 512.000 1 512.000 . . a
Residual .000 0 .
Total 512.000 1
Fig 6.2
Coefficients
1 (Constant) .194 .000 . .
Brandname .516 .000 1.000 . .
Fig 6.3
There is very strong conclusive evidence that the Brand name depends on the
category
1) For the entry level segment, the biker is relaxed, uses the bike for transport
and has less time operating with him, in this process he uses the unorganized sector
the maximum

2) For the segment of 125 – 250, there are mixed reactions, some of the persons
prefer to get their bike repaired with the Castrol biking zones or the unorganized
sector
3) The segment of 250 and above see’s a tumultuous change in the attitudes, this
segment barely gives it to the unorganized sector though has the potential to go to
company owned showrooms.
4) The Castrol zones and company showrooms have a great role in this
opportunity; they should look at innovative ways to attract the segment or entry
level bikes as they constitute a majority of the market.
5) The level of distribution channel also plays a very important in this work.
Does a brand influence a decision in switching from an unorganized service to an
Organized Service
ANOVAb
Sum of
1 Regression 32.000 1 32.000 . . a
Residual .000 0 .
Total 32.000 1
Fig 6.4
Coefficientsa
1 (Constant) 5.548 .000 . .
Brandname .129 .000 1.000 . .
Fig 6.5
1) Although brand plays a very important role in the perceptions, it is
imperative that there exists a very strong correlation with the name of the brand and
the service he uses.

2) It is also in the good need for a brand to attain the same cost with better
operating margins
3) Brands have to be created, there is a market for another brand in this category
4) The brand should be positioned in between the unorganized sector and the
Castrol biking zone.
Does a brand influence a decision in switching from an Branded to Showroom
Service
ANOVAb
Sum of
1 Regression 200.000 1 200.000 . . a
Residual .000 0 .
Total 200.000 1
Fig 6.6
Coefficientsa
UN standardized Standardized
1 (Constant) 46.129 .000 . .
Brandname -.323 .000 -1.000 . .
Fig 6.7
1) According the ANOVA values, there exists a residual regression which places
importance on the brand name, the result with a coefficient being negative, there
exists a negative correlation, and there is not much emphasis on the brand name
when it comes to switching.

Service shift during an emergency
Unorganized in case of an emergency
ANOVA
Sum of Mean
Model Squares df Square F Sig.

1 Regression 98.683 1 98.683 .374 .603a
Residual 527.317 2 263.659
Total 626.000 3
Fig 6.8
Coefficientsa
Standardize
Unstandardized d
1 Constant 35.366 18.788 1.882 .201
Unorgval -.415 .678 -.397 -.612 .603
Fig 6.9
1) During an emergency, there is a negative correlation, though there is an
emergency, people do not want to switch to another player, they would like to play
their cards right by trusting their service partner, a negative score of -.415 shows it.

Brand in case of an emergency
Calculation of Mode
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .659a .434 .152 15.640
Fig 7.0
ANOVA
Sum of Mean

1 Regression 375.759 1 375.759 1.536 .341a
Residual 489.241 2 244.621
Total 865.000 3
Fig 7.1
Coefficient Values
Standardize
Unstandardized d
1 (Constant) 41.869 17.475 2.396 .139
Emergenc
-.775 .625 -.659 -1.239 .341
y
Fig 7.2

their cards right by trusting their service partner, a negative score of -.775 shows it.
Showrooms in case of an emergency
Calculation of Mode
Adjusted R Std. Error of the
Model R
ANOVA R Square Square Estimate
1 .676a Sum .457 of .186 Mean 19.313
Fig 7.3
1 Regression 628.002 1 628.002 1.684 .324a
Residual 745.998 2 372.999
Total 1374.000 3
Fig 7.4
Coefficients
Standardize
Un standardized d
1 (Constant) 50.040 21.579 2.319 .146
Emergenc
-1.002 .772 -.676 -1.298 .324
y
Fig 7.5
their cards right by trusting their service partner, a negative score of -.1.002 shows it.

Choice of brand name and nature of service delivery
Coefficient values
Un standardized Standardized
1 (Constant) .194 .000 . .
Brand
.516 .000 1.000 . .
value
Fig 7.6
ANOVA
Model Sum of Squares df Mean Square F Sig. This
is Regression 512.000 1 512.000 . .a very
Residual .000 0 .
Total 512.000 1
Fig 7.7
important,
1) In the analysis of our study, from what we have mentioned there exists a very
strong correlation between the service delivery and the brand name
2) For instance with a brand like Castrol, the customer already has a perception
regarding the service delivery, and this has been the major contributing factor in his
judgment and analysis.

3) With respect the showrooms, the customer knows that the quality standards
of the show rooms will be high, and this show rooms have to have existing
parameters set.
4) The final unorganized sector, does give the required quality, but his personal
brand and not the brand of his outlet will be under fire for failing to perform.
5) Thus for the Castrol and company showrooms the incidence of the brand
reflecting the service quality is high.
CONCLUSIONS
According to the interpretation done by using the various statistical tools of the 100
samples which were collected and according to the findings of the individual tables
we could conclude the following:
 The commuter Bike segment rules with 56% of the people owning, 18% own
the mid commuter level and 16% own the enter level performance bikes and 10%
own the performance bikes.
 The private workshops take the 42% of the share and the company showroom
service centre tops the segment. The branded service outlets have only a marginal
share of 10% but later in the analysis it shows that they have a lot of scope for
development.
 Cost is the major factor for people to prefer the private work shops or the
unorganised sector. Then comes trust with 32% convenience with 12% and reach of
outlets with 15%
 Warrantee leads with 46%transparency with 23% brand value with 14 % and
reach with 7 %

 Factors for people preferring showroom service , brand 20% warrantee 56%
transparency at 17% and reach at 7%
 Most of the sample population think that the private mechanics have more
knowledge than the company service centres and the branded service outlets
 Better service is the only major factor for the sample population to move from
a private work shop to a branded work shop.
 In the case of emergency reach is the only factor which would make the
consumer move from a higher level of orbit to a lower level.
 The conflicts of branded outlets and the showroom service centres people
would prefer to change only because of trust.
 Lastly brand name does have an influence over the decision of the consumer
as to where to get his bike serviced.
 Looking at the interpretation it clearly shows that there is a gap in the service
delivery and a new outlet positioned in between the Castrol bike zone or the
branded showroom service centre and the unorganised sector with medium cost for
each service and specialising only at the commuter segment (100-135cc) would be
ideal.
 The next best segment is the entry level performance bikes (150 to 250cc)
establish a position and cost and trust are the major factors.

BIBLIOGRAPHY
 Marketing Management by Philip Kotler.
 Marketing Management Millennium Edition by Philip Kotler and

Mithileshwar Jha.
 www.quickmba.com
 www.xbhp.com
 www.surveymonkey.com

Service Delivery Gaps in Biking Zones

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Service Delivery Gaps in Biking Zones

Uploaded by

Copyright:

Available Formats

A PROJECT REPORT ON

SERVICE DELIVERY GAPS IN BIKING ZONES

A SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE SUMMER INTERNSHIP PROGRAMME OF

AURORA’S DEGREE & PG COLLEGE

1 SERVICE DELIVERY GAPS IN BIKING ZONES

Is the bonafide work done by

Dr. Ravi Paturi Course Coordinator Head of Dept.

Aurora’s Degree & PG College, Chikkadpally, Hyderabad-20.

This is to inform that I Sarilla Aditya of B.com (Hons)-III, had

SERVICE DELIVERY GAPS IN BIKING ZONES 2

I hereby declare that this project report submitted by me to Osmania

for giving me an opportunity to undertake this project work.

3 SERVICE DELIVERY GAPS IN BIKING ZONES

encouragement, this work would not have been completed.

Department Mr. Viswanadham Bulusu who has given me this opportunity.

carrying out this project.

Name : Sarilla Aditya

TO WHOM SO EVER IT MAY CONCERN

SERVICE DELIVERY GAPS IN BIKING ZONES 4

5 SERVICE DELIVERY GAPS IN BIKING ZONES

SERVICE DELIVERY GAPS IN BIKING ZONES 6

Although the premium-bike segment is increasing at an increasing phase, the author

7 SERVICE DELIVERY GAPS IN BIKING ZONES

SERVICE DELIVERY GAPS IN BIKING ZONES 8

Domestic Two Wheeler Industry

2006 7.05 Million (units)

segment, give the marketer an opportunity to establish ‘branded service’ centres

9 SERVICE DELIVERY GAPS IN BIKING ZONES

A look at the Market share of the two wheeler industry

Segment Share in Total 5- year CAGR

Two Wheelers 75.4% 8.8%

Passenger Vehicles 16.4% 16.7%

Three – Wheelers 4.5% 10.4%

Commercial Vehicles 3.7% 12.6%

Today, the market is dominated by yuppies, young urban professionals, financing

suffices the need for the project on a holistic level.

Breakup of Segment (2009)

SERVICE DELIVERY GAPS IN BIKING ZONES 10

the surveyed show an inclination towards company showrooms.

correlated to a multitude of factors, these factors shall be enumerated in the

 To take rapid strides in understanding why people go to a branded outlet, the

factors, the causes, understanding how brand image, reputation, transparency,

 Repeating the same factors for the showrooms.

‘unorganized’ sector to the ‘organized’ and to ‘company owned showrooms’.

11 SERVICE DELIVERY GAPS IN BIKING ZONES

this case scenario.

 Understanding if a brand name would influence in making a decision.

 The research methodology, used is an independent research compromising a

research is centered on.

Limitations of the study

 The limitations of the study are emphasised as follows.

 The respondent profile is short to take decisions regarding the target

audience, positioning and the segmentation

 Individual interviews should have been conducted, to get a more, detailed

overview regarding the ground realities.

questions should have been the case.

SERVICE DELIVERY GAPS IN BIKING ZONES 12

13 SERVICE DELIVERY GAPS IN BIKING ZONES

range of oils, greases and similar products for most lubrication applications. The

are taken from the customer before commencing any work.

High Tech Equipments:

SERVICE DELIVERY GAPS IN BIKING ZONES 14

Present Bike Zone Network