Study of Service Operations at Castrol Bike Zone

Group No: 7
Anirban Dhar, Anoop S Pillai, Clevin Carvalho, Mayank Rawat, Vamsi Kanth.

Group No: 7

Study of Service Operations at Castrol Bike Zone

Table of Contents

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Executive Summary………………………………………03 Introduction………………………………………………..04 Objective of the study……………………………………07 Overview of Castrol Bike Zone…………………………10 Research methodology………………………………….11 Limitation of the study…………………………………..15 Finding and Analysis…………………………………….16 Conclusion…………………………………………………25 Annexure…………………………………………………...26 Questionnaire..........................................................27

Executive Summary
The automobile industry today is the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the bikes sales have increased
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rapidly over the corresponding period in the previous year. Further competition is heating up in the sector with a host of new players coming in to venture in the Indian markets. One factor that could help the companies in the marketing of their product is by knowing and creating a personality for their brands. This report attempts to answer some of the questions regarding service and satisfaction level of Castrol Bike Zone in India by conducting the market research. This report is categorized into parts, deals with introduction to Castrol Bike Zone, companies selected, product and the industry. The behaviour of the customers can be studied by knowing their perceptions about the bikes in the market and about the possible entrants in the market. This research will help in knowing what a customer (or a potential customer) thinks about the service and satisfaction level with Castrol Bike Zone and what are the possible factors guiding a possible revisit. Similarly, the idea of measuring the customer satisfaction will serve the same purpose of determining the customer perception. Thus, by measuring the” willingness of existing users of a bike to recommend it to others” will help the Castrol Bike Zone to chalk out the entire Customer Behaviour. The report shall attempt to answer some of the questions regarding service and satisfaction level at Castrol Bike Zone serviced bikes in Bangalore by conducting a market research. The market research will be helpful for the service centres in India to find out the possible gaps between the customer expectations and the present market offerings. This way these service centres will be able to find their share in the ever-expanding Indian market pie. The research will track the customer satisfaction in the following two layers:  Product related Parameters  Dealers related parameters The customer satisfaction index will be calculated for the bikes taken into consideration. It will be mainly a primary research and the information will be gathered from
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both primary and secondary research. The study will analyze the applicability of existing research concepts, theories, and tools for evaluating consumer satisfaction.

Introduction
It is true fact that if you are satisfied you recommended to others. Word of mouth and customer satisfaction play a very important role in determining market perception about a service centre. It is the market perception that determines the success of a service centre and so it is very important for the service centres to measure the “willingness of existing users of a product to recommend it to others”. The same is a lot of interest to customers as well for it helps them make the service decision. A bike is one of the most significant purchases that an Indian consumer makes and this project addresses the most important question that perplexes bike service centres: “What makes Winning Customers Trust and willingness of a product to recommend it to others by him?” The project highlights the factors that influence the service centre decision of a consumer. The factor under consideration would be:  Price  Technical Facilities  Service Time  Bike Handling  Staff Knowledge  Finance schemes

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Customer satisfaction index: some of the most advance thinking in the business world recognizes that customer relationships are best treated as assets, and that methodical analysis of these relationships can provide a road map for improving them “If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin (1824-1907)

Major attributes of customer satisfaction can be summarized as: Product quality Product packaging Keeping delivery commitments Price Responsiveness and ability to resolve complaints and reject reports Overall communication, accessibility and attitudes

     

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Values

+

Benefits

-

Features

-

Attributes

We cannot begin to address the customer satisfaction issue we define the parameters and measures clearly. The customer satisfaction index represents the overall satisfaction level of that customer as one number, usually as a percentage

“The fact that word of mouth sales are a big deal in this industry has also helped. Industry players and market surveys reveal that 20-30 percent of sales are through word of mouth”. For the purpose of the project has undergone through  Surveying the relevant consumer base through exhaustive questionnaire.  Understand the elements underplaying in each segment  Deducing An analytical overview through different statistical methods

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Recommendation comes from satisfaction and satisfaction comes from

Relationship Quality

Product Quality

Service Quality

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Study of Service Operations at Castrol Bike Zone

Objectives of Study
The research objective is a statement, in as precise terminology as possible, of what information is needed. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied. Research objective have three components.

Research question:
The research question specifies the information to select the service centre decision making needs. The responsibility of the researcher is to make the researcher question as specific and precise as possible. The researcher question asks what specific information is required to achieve the research purpose, or answer the research problem. If the research questions are answered by the research, then the information should aid the decision maker.

Development of hypothesis:
A hypothesis is a possible answer to a question. Development of hypotheses implies generating basically alternative answers to research questions. The research determines which of these alternative answers is correct. It is not always possible to develop hypotheses, but efforts should be made.

Scope or boundaries of the research:
Defining the scope of the research or the research boundaries ensures the desired precision or accuracy of the result. The researcher’s responsibility is to restate the initial variables associated with the decision problem, that is convert the research problem, in the form of one or more key question formats• •

How What
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• • •

Study of Service Operations at Castrol Bike Zone

Where When Why

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Objectives of the Research:
The research objectives for the project undertaken can be defined as follows:  To examine the customer perception about the Castrol Bike Zone.  To judge the satisfaction level of bike owners of different brands at Castrol Bike Zone.  The research tracks responses at following two layers  Product related parameters  Service Station related parameters  To analyze the psychographic variables of the customers at Castrol Bike Zone

Scope of the study:
It is aimed to study the satisfaction level of the customer at Castrol Bike Zone. The project is analyzed the demographic, psychographic and satisfaction characteristics of the customers in servicing the bike. It includes the detailed study of customers focusing on the various parameters that lead to identifying and understanding the perception of the customer in servicing the bikes.

Research Methodology:
A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question.

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R esea

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Overview of Castrol Bike Zone
Transparency in Operations:
Customer can wait at the swanky waiting lounge in BikeZone 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, BikeZone network satisfies around 45,000 customers per month which itself speaks of high quality and great
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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 BikeZone Set up by end of april-2008

With Increased focus and a dedicated team, BikeZone is poised to touch greater heights.

Research Methodology
This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results.

Research Design:
We propose to first conduct a intensive secondary research to understand the full impact and implication of the Castrol Bike Zone, to review and critique the norms and reports, on which certain issues shall be selected, which we feel
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remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help us to restrict and select only the important question and issue, which inhabit growth and segmentation in the service station. The various tasks that we have undertaken in the research design process are:  Defining the information need  Design the exploratory, descriptive and causal research.

Research Process:
The research process has four distinct yet interrelated steps for research analysis it has a logical and hierarchical ordering:  Determination of information research problem.  Development of appropriate research design.  Execution of research design.  Communication of results. Each step is viewed as a separate process that includes a combination of task, step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing.

Exploratory research:
The method we used for exploratory research was  Primary Data  Secondary data

Primary Data:
New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information
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gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is basically collected by getting questionnaire filled by the respondents.

Secondary Data:
Information that already exists somewhere, having been collected for another purpose. Sources include trade publications, and subscription services. There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation. Data that have already been collected for some purpose other than the current study. Researching information which has already been published. Market information compiled for purposes other than the current research effort; it can be internal data, such as existing salestracking information. Secondary source of data used consists of books and websites Our proposal is to first conduct a intensive secondary research to understand the full impact and implication of the Castrol Bike Zone, to review and critique the norms and reports, on which certain issues shall be selected, which we feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research.

Descriptive research:
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STEPS in the descriptive research:  Statement of the problem  Identification of information needed to solve the problem  Selection or development of instruments for gathering the information  Identification of target population and determination of sampling Plan.  Design of procedure for information collection  Collection of information  Analysis of information  Generalizations and/or predictions

Data Collection:
Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. We found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at various Castrol Bike Zone service centres. The data was collected by interacting with 38 respondents who filled the questionnaires and gave us the required necessary information. The respondents consisted of students, business men, professionals etc. the
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Study of Service Operations at Castrol Bike Zone collected by directly interacting with these

respondents.

Determination the sample plan and sample size: Target Population:
It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. The group of people you are trying to reach with a particular strategy or activity. The target population is the population we want to make conclusions about. In an ideal situation, the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. We have selected the sample trough Simple random Sampling

Sample Size:
This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors:  Project goals  How you plan to analyze your data  How variable your data are or are likely to be  How precisely you want to measure change or trend We have targeted 38 people in the age group above 20 years for the purpose of the research. The sample size is influenced by the target population. The
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target population represents the Bangalore regions. The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section.

Sampling technique:
Simple random sampling technique has been used to select the sample A simple random sample is a group of subjects (a sample) chosen from a larger group (a population). Each subject from the population is chosen randomly and entirely by chance, such that each subject has the same probability of being chosen at any stage during the sampling process. This process and technique is known as Simple Random Sampling, and should not be confused with Random Sampling.

Limitations of the study:
 All the research projects are hindered in their smooth flow by some unforeseen problems. The problems arise in the form of constraints by time and scope of the study. The current project was also faced by certain problem. Some of the problems faced in the course of the research are as follows:  A strong unwillingness on the part of the owners of various bikes, to participate and aid the research.  Sampling error: the research include a sample size of 38 customers which is not enough to determine the brand perception of the consumers for servicing the bikes. Since its not a census survey there is always a chance of error while extrapolating the results of a sample study over the population especially in those researches where the qualitative aspects are concerned. So it’s always doubtful to map the qualitative aspects using a quantitative measure.

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 The study was limited to the geographical region of BANGALORE

Findings & Analysis
Q1. No of Problems experienced in your Vehicle • • • • None One Two Three or More

Interpretation: As per the analysis shows, Problems Experience seems to be the most
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important reason for servicing the bike. Similarly, the performance needs like mileage, speed, stability at higher speed etc. adds to the motives for servicing the bike.

Q2. No of times you have returned for same problem • • • • None One Two Three or More

Interpretation: It clearly indicates that most of the customers got solved their problems in the first visit itself at Castrol Bike Zone, similarly few customers were also returned
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for the same problem due to some reasons

Q3. Please rate your Castrol Bike Zone on the understated parameters on the scale of 1 to 5 where 1 2 3 4 5 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 1 2 3 4 5

Parameters Ease of Obtaining appointment for Service Distance ( Proximity) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Bike Handling ( Delivery & service) Assured Customer

Transactions Ambience of Service Center Finance ( Credit) Schemes

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Dealers are the middle men between a bike manufacturer and its customers. Dealer thus becomes the most important link in joining the company to its customers as he is the person who will sell the product, will deliver it and will keep on providing the after sales services to the customers as and when required. So, it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called bike!

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Interpretation: Among all the listed factors Castrol Bike Zone is fares the best among all its counter parts in terms of dealer density which is quite obvious. Also, the cost of service provided by Castrol Bike Zone is also satisfied by the most of customer. Similarly, Castrol Bike Zone emerges out as the clear winner among its competitors through its excellent services, we say all thanks to the vast, extensive and well managed service system.

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Q4. How do you rate the brand image of your Service Center? 1 Very Low 2 3 4 5 Very High

Interpretation: As per the analysis, Castrol Bike whose brand image is most preferred in the market. This is because of the reason, that it’s from the house of Castrol, a London company known for its overall image. Similarly due to few reasons few customers were rated as Low image about the Bike Zone.

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Q5. Please rate your performance of your bike after service on the scale of 1 to 5 • • • • • 1 2 3 4 5 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Parameter Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed

1

2

3

4

5

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Interpretation: The customer choice of the bike highly depends upon the performance and maintenance costs of the bike. This is the reason why this class of parameter was chosen for this study. And the results show that Castrol Bike Zone fares the best service in its segment as most efficient service of all. So this segment shows a mixed bag of response for the Fuel efficiency and mileage parameter etc. Bike Zone performs consistently on all the parameters and all serviced bikes fares really well on pick up whereas it fares somewhat badly on fuel consumption and Top Speed. Q5. Reasons for choosing Bike Zone (rate best 3 factors from 1 to 3 in order of your preference) 1. Affordable price 2. Technical superiority over competition 3. Comfort 4. Manufacturer’s image 5. Value for money 6. Safety

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Interpretation: Indian market is still the hard nut to crack for most of the automobile manufacturers. Though the Indian bike industry is among the fastest growing bike markets of the world still the Indian psyche is too complex for the manufacturers to understand. The most important reason for choosing Castrol Bike Zone seems to be “Comfort”, 19 of the respondents suggested that “Manufacturer’s Image”, “Affordable prices” are the most important factor while choosing a bike zone. This is the reason why 15 of respondents were satisfied with the Castrol Bike Zone. This reason is also followed by ‘Value for money’ where the customers look for the best product, best services and best repute all bundled in one with the best deal they can strike. This explains 16 of respondents were told that Castrol Bike Zone proves “Value for Money”. Q6. Will you recommend to your friends?

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Study of Service Operations at Castrol Bike Zone

Interpretation: It seems logical that satisfied customers will someday become loyal customers, in other words there is a positive correlation between customer satisfaction scores and customer buying behaviour. If a customer rates the Castrol Bike Zone very high in satisfying his or her needs, the bike Zone should expect more referrals and this is reflected in the analysis that 36 of our respondents say that they will refer their car to their friends & relatives.

Demographics:

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We surveyed 38 people who belonged to various age groups. The survey of 4 age groups was done. The four age groups were:
   

Less than 21 years 21 -35 years 36-54 years More than 55 years

Conclusion
To conclude, the results show that the Castrol Bike Zone is playing on the peripheral cues to maintain their Total Relationship Management and connect to the customers both present and potential. The Bike Zone is operating in a
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highly aggressive and competitive global market place and this climate has led to the emphasis on quality in all aspects. TQM focuses on integration and coordination as well as the continuous improvement of all activities and processes. Total Relationship Management (TRM) is a very recent marketing strategy and philosophy. It focuses on and is concerned with all integrated internal and external activities within the organizations. These two terms are integrated by the Castrol by building good quality products and building good relationship with Consumers through enhancing it service levels. However, when studied from the point of view of a customer there seems to be no major difference among the bike brands in a segment as far as performance is concerned. The brand perception is dependant mostly on the peripheral cues depending upon the nature and quality of the service provided along with the pricing, maintenance, availability of spare parts and related issues. So, Castrol Bike Zone should focus more on its pricing factor because few customers were felt that the priced being charged is higher than other service centres. The study shows that brand perception is something which starts building up before servicing a bike and goes on with its use and is reflected in the recommendations the customer makes to his acquaintances for the same bike zone. Also, it’s seen that the customer might not be using the bike still he holds the perceptions about it. Brand personality of a service zone is enforced by the dealers in the mindsets of the customers and the customers react to it by forming their perceptions about the service station and this reflects in the overall brand image of the bike zone. So brand image complement each other and the brand perception aids the building of brand image. Finally the major point that emerges out of this detailed study is a caution for the service stations. It says that there is no doubt that Indian market may be growing with a double digit figure still the service stations have a long way to travel to convince their customers about the Quality of their service and how it suits the prospective consumers. Simply because it simply is not a guarantee that how so ever good the customer might be holding the brand perception and how so ever good the brand image may be it is not a guarantee that it will convert into sale. Bikes just like clothes and accessories suit the style and
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persona of a person and since all bikes will become commodity someday the key to sell and excel in the market will lie with a person who knows how to use the perceptions of the customers to its use and sell the bikes ‘coz ultimately only that bike survives which sells!

Annexure
 REFRENCES  QUESTIONNAIRE References: Sites Visited www.scribd.com www.mountshut.com

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Questionnaire
Dear Customer: As the student of IFIM B- School, I want to thank you for giving us the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. We appreciate your business and want to make sure we meet your expectations. Q1. No of Problems experienced in your Vehicle • • • • None One Two Three or More

Q2. No of times you have returned for same problem • • • • None One Two Three or More

Q3. Please rate your Castrol Bike Zone on the understated parameters on the scale of 1 to 5 where 1 2 3 4 5 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
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1 Ease of Obtaining appointment for Service Distance ( Proximity) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Bike Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) Schemes

2

3

4

5

Q4. How do you rate the brand image of your Service Center? 1 Very Low 2 3 4 5 Very High

Q5. Please rate your performance of your bike after service on the scale of 1 to 5 • • • • • 1 2 3 4 5 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 1 2 3 4 5

Parameter Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed

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Q5. Reasons for choosing Bike Zone (rate best 3 factors from 1 to 3 in order of your preference) 7. Affordable price 8. Technical superiority over competition 9. Comfort 10. Manufacturer’s image 11. Value for money 12. Safety Q6. Will you recommend to your friends? • • Yes No

Age group:
   

<21 21-35 36-55 >55

Number of Bikes owned: Present Bike owned (At the time of service): NAME: Phone NO: GENDER:

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