USER

[Year]
[Type the company name]

CRM Practices in Indian

[Pick the date]

Automobile Sector- car

segment.
 A
PROJECT REPORT
ON
CRM PRACTICES IN INDIAN AUTOMOBILE SECTOR

JAIPURIA INSTITUTE OF MANAGEMENT

A project report submitted in partial fulfillment of the requirements
for the program PGDM (2009-2011)

LITERATURE REVIEW

CRM techniques are the most widely techniques that had been used by the companies
but as our study revolves around the small car dealers so we have collected some of the data
on the existing structure of the CRM in the automobile industry by taking into consideration
the main three companies that is Maruti Suzuki, Hyundai, Tata Motors. To respond to high
customer expectations companies are finding they have to use both traditional and emerging
channels to deliver more effective efficient and profitable marketing sales.
An article that is being posted by delearelite.ca that what actually is the crm in the
automobile industry in that they have explained about the diffrrence between the CRM and
DMS as a dealer management software should have
Also an CRM-DMS initiative that is taken by tata motors has connected company to
1200 dealers and to the end customers. Of course we should also know about the choosing of
CRM software and that can be well got from the article that is poste on CRM guru blog that
is CRM Software Selection Does Not Have to Be Daunting Task which explains that
Choosing CRM software can be a daunting task, it does not have to be an insurmountable
one.
Simply defining the right goals and how the CRM software enables the company to
meet those goals will go a long way in preparing the company to make the smart choice.
Another aricle that is being posted on emerland insight that explains about the digital loyality
networks being adopted by the automobile dealers to enhance their CRM activities. digital
loyalty network, including the implementation of an integrated network connecting the

● ● ●

SUBMITTED TO : SUBMITTED BY :
Ms. SHUBHA JOHRI ABHINAV SHARMA
BHAWANI SINGH
DEVENDER SINGH
GAURI SINGH
HITESH AGARWAL
2 RAHUL AGRAWAL
SWATI SHUBHKAMINI
JAIPURIA INSTITUTE OF MANAGEMENT
company with suppliers, alliance partners, dealers and customers .
One of the greatest example of CRM being adopted by maruti Suzuki when it recalled
it’s A star car due to some of the discrepancies article by arnab RC Bhargava, who is the
chairman of the company said that Maruti Suzuki is committed to the safety of the customers.
Another article that explains about the common CRM requirement to run the small car
dealership effectively and also explain the most suitable CRM solution the article namedWhich
vendor is the best automotive CRM solution for today's small dealerships?
Typically a smaller dealership will not have that many departments or unnecessary
complexity to worry about, hence a lot simpler CRM solution is required, but at the same
time the system should be powerful and proven solution to their unique marketing challenges.
Some of the challenges facing the smaller dealers are: one the price tag, the smaller dealers
wouldn't want to pay a setup fee from $2000 to $10000, and they certainly don't want to pay a
monthly cost of $1500 - $500. The second challenge is I.T support, because many of the
smaller dealers will not have the luxury of having constant I.T support, therefore their CRM
solution should require minimal user training, with intuitive user interfaces. It should be
easily understood and used by the management, instead of leaving all the CRM problems to
your I.T department. Another feature that is required by the smaller dealer is quick turn
around, when they receive a vehicle, or stocking in a vehicle into their inventory.
In one of the article being posted by sharla sikes she has explained about the
increasing level of customer satisfaction due to the changing CRM that is 360 degree CRM
which maintain from all aspects a complete record of that consumer’s information. Data and
processes factor large in traditional CRM setups. The article is named as more than just
CRM.
Another article that is being posted by articlebase.com has resulted the parameters
that can be used to measure the customer satisfaction and the maruti was one of the first to
rank highest in customer satisfaction and the parameters on which the customer satisfaction
level was measured were problems experienced, service quality, service advisor, service
initiation, user-friendly service, service delivery, and in-service experience.
on demand automotive crm software solution: (car dealer software This is an
article written by salesboom.com that has explained Automotive CRM software systems are
designed to meet the most demanding Automotive sales software, marketing, call center,
Automotive shop software and field service requirements for car companies, importers, used
car dealers, parts shops, auto repair shops, distributors, and retailers. Salesboom Automotive
CRM tools encompass very comprehensive Automotive Software Applications that facilitate
management, synchronization, and coordination of all customer touch points, including Web,
call center, field organization, Automotive shop, showroom and partner networks.
In one of the article that is posted on the blogspot.com the article named as six reason why
crm initiative fails .There can be many reasons why CRM initiatives fail but here it’s going
to focus specifically on six of them pertaining to small businesses and startups. These CRM
activities has some points to be discussed like Counting v. Creating Customers, Measuring
the Wrong Thing, Structured v. Unstructured Data, Ease-of-Use, "Feeding the Monster",
Transactional Systems v. Solution/Relationship Systems. CRM guru has one of the article
being posted on it that explained about the strategic framework of CRM in automobile
sector. The authors emphasize the need for a cross-functional, process-oriented approach that
2

JAIPURIA INSTITUTE OF MANAGEMENT

positions CRM at a strategic level. They identify five key cross-functional CRM processes: a
strategy development process, a value creation process, a multichannel integration process, an
information management process, and a performance assessment process.
ARTICLE REFRENCES
http://www.articlesbase.com/automotive-articles/why-are-the-dealers-still-using-
outdatedsoftware-
as-their-crm-solution-1944208.html
http://gmj.gallup.com/content/28297/what-price-car-customer-loyalty.aspx
http://www.salesboom.com/products/web-based_automotive_crm_software_solution.html
http://www.atypon-link.com/AMA/doi/abs/10.1509/jmkg.2005.69.4.167
http://blog.hubspot.com/Default.aspx?TabId=6307&bid=52
http://www.acastle.com/?gclid=CKe9tMSOsKACFQoupAodDiAiTg
http://www.tmcnet.com/channels/crm-software/articles/5594-crm-software-selection-doesnot-
have-be-daunting.htm
http://blog.taragana.com/index.php/archive/maruti-a-star-recalled/
http://www.emeraldinsight.com/10.1108/10878570310505541
http://www.business-standard.com/india/news/auto-companies-need-to-deliver-atdealer\slevel/
367948/
http://www.articlesbase.com/advertising-articles/maruti-suzuki-rolls-high-on-
customersatisfaction-
627273.html

JAIPURIA INSTITUTE OF MANAGEMENT

 ACKNOWLEDGEMENT

This project could not have taken its present shape with out the help of a number of people.
Looking back over this period of our life, we wish to thank all those who contributed in some
way to this work.

We are sincerely grateful as well as indebted to our project mentor Prof. Shubha Johri, Jaipuria
Institute of Management, Jaipur under whose able guidance and supervision this study has been
undertaken. Her continuous support and valuable advice enabled us to complete the project on
time. She is behind all our efforts. She taught us how to be inquisitive and express our ideas. She
showed us different ways to approach a problem and the need to be persistent to accomplish any
goal.

We thank all the colleagues for providing unending support in the project.

Sincere thanks to Jaipuria Institute of Management, Jaipur.

Above all we thank The Almighty and The Parents for their invincible faith in us and support
that has proved to be a lethal motivating factor.

ABHINAV SHARMA
BHAWANI SINGH
DEVENDER SINGH
GAURI SINGH
HITESH AGARWAL
RAHUL AGRAWAL
SWATI SHUBHKAMINI

JAIPURIA INSTITUTE OF MANAGEMENT

PGDM 2009-11

JAIPURIA INSTITUTE OF MANAGEMENT

 EXECUTIVE SUMMARY
The basic concept of our project is to study and understand “CRM Practices in Indian
Automobile Sector – the car segment ”.
This report contains the findings arrived after detailed analysis of the data received through
filing questionnaires at various areas of Jaipur. The need of this study is to find the impact made
by the CRM activities by the different manufacturer and automobile dealer on the customer
satisfaction and sale.This study let us know about the various aspects of the CRM activities and
automobile dealer in India. What are thevarious factors affecting it positively and negatively?
This study will enhance our knowledge and will help us in times to come. We all find this area
of study very lucrative so we have chosen it as our topic of project.
In this project, sample size was 100 and different age group people were targeted for survey.
Objective
• To find out the effectiveness of CRM practices in AUTOMOTIVE SECTOR.
• What are the different CRM techniques being adopted by various dealers in small car
segment in the region of Rajasthan
• . How much the CRM initiative of the companies helps them to retain their existing
customer and acquiring new customers.
• Does the CRM activities have any impact on customer loyality.
• To critically analyze the CRM initiative taken by automobile dealers to enhance
customer satisfaction

Research Methodology
1. Data Collection
The study is based on primary data derived through sample survey using pre-tested structured
instrument (questionnaire). Data was collected from 100 respondents of Jaipur city.

2. Data Analysis
In order to extract appropriate findings of the questions mentioned in the questionnaire, 2 major
tools have been used in this research these are as follows:-
• MS- EXCEL
• SPSS-16.0.

JAIPURIA INSTITUTE OF MANAGEMENT

1. Conclusion
From the survey conducted conclusions were drawn and it can be concluded that

JAIPURIA INSTITUTE OF MANAGEMENT

 TABLE OF CONTENTS

FRONT PAGE
TITLE PAGE
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION

1.1 Concept
1.2
1.3 Scope of the Study
1.4 Objective of the Study
CHAPTER 2 RESEARCH METHODOLOGY
CHAPTER 3 ANALYSIS AND INTERPRETATIONS
3.1
FINDING
CONCLUSION
BIBLIOGRAPHY
ANNEXURES

CHAPTER-1
INTRODUCTION
1.1 INTRODUCTION TO THE PROJECT

JAIPURIA INSTITUTE OF MANAGEMENT

This chapter explains about the background and states the objectives of the project. The purpose
of the study is to study and understand the CRM Practices in automobile sector with special
focus on passenger car segment.

1.2 SCOPE OF THE PROJECT

• The scope of the study is limited only to the Jaipur city.
• The main purpose of the project is to study the
• The activity was restricted only for Jaipur.
• The activities were carried out only at

1.3 OBJECTIVE
• To find out the effectiveness of CRM practices in AUTOMOTIVE SECTOR.
• What are the different CRM techniques being adopted by various dealers in small car
segment in the region of Rajasthan
• . How much the CRM initiative of the companies helps them to retain their existing
customer and acquiring new customers.
• Does the CRM activities have any impact on customer loyality.
• To critically analyze the CRM initiative taken by automobile dealers to enhance
customer satisfaction

JAIPURIA INSTITUTE OF MANAGEMENT

The Automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India manufactures over 11 million 2 and 4-wheeled vehicles and exports
about 1.5 million every year. It is the world's second largest manufacturer of motorcycles, with
annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle
manufacturing industry is the seventh largest in the world, with an annual production of more
than 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of
passenger cars, behind Japan, South Korea and Thailand. According to the Society of Indian
Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by
2015 and more than 9 million by 2020.
As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars were
sold in India in 2009 (an increase of 26%), making the country the second fastest growing
automobile market in the world. By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the nation's roads. A major chunk of India's
car manufacturing industry is based in and around the city of Chennai, also known as the
"Detroit of India” with the Indian city accounting for 60 per cent of the country's automotive
exports.[10] Chakan corridor near Pune, Maharashtra is another prominent vehicular production
hub with General Motors, Volkswagen/ Skoda, Mahindra and Mahindra in the process of setting
up or already set up facilities. Halol in Gujarat, Gurgaon neighboring New Delhi, Aurangabad in
Maharashtra, Kolkatta in West Bengal are some of the other automotive manufacturing regions
around the country.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, expanded their domestic and international operations. India's robust economic growth
led to the further expansion of its domestic automobile market which attracted significant India-
specific investment by multinational automobile manufacturers. In February 2009, monthly sales
of passenger cars in India exceeded 100,000 units.
The first car ran on India's roads in 1897. Untill the 1930s, cars were imported directly.
Embryonic automotive industry emerged in India in the 1940s. Following the independence, in
1947, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the growth
was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which
hampered the Indian private sector. After 1970, the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major
luxury. Japanese manufacturers entered the Indian market ultimately leading to the
establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian
companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for building
motorcycles and light commercial-vehicles. It was at this time that the Indian government chose
Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in
1991 and the gradual weakening of the license raj, a number of Indian and multi-national car

JAIPURIA INSTITUTE OF MANAGEMENT

companies launched operations. Since then, automotive component and automobile
manufacturing growth has accelerated to meet domestic and export demands.
Production statistics
The production of automobiles has greatly increased in the last decade. It passed the 1 million
mark during 2003-2004 and has more than doubled since.[
Year Car % Commercial % Total Vehicles %
Production Change Change Prodn. Change
2009 2,166,238 17.34 466,456 -4.08 2,632,694 11.40
2008 1,846,051 7.74 486,277 -9.99 2,332,328 3.35
2007 1,713,479 16.33 540,250 -1.20 2,253,999 10.39
2006 1,473,000 16.53 546,808 50.74 2,019,808 19.36
2005 1,264,000 7.27 362, 755 9.00 1,628,755 7.22
2004 1,178,354 29.78 332,803 31.25 1,511,157 23.13
2003 907,968 28.98 253,555 32.86 1,161,523 22.96
2002 703,948 7.55 190,848 19.24 894796 8.96
2001 654,557 26.37 160,054 -43.52 814611 1.62
2000 517,957 -2.85 283,403 -0.58 801360 -2.10
1999 533,149 285,044 818193
Domestic Indian automotive companies

Tata Indigo Manza.

• Chinkara Motors :Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
• Hindustan Motors: Ambassador
• ICML: Rhino Rx
• Mahindra: Major, Xylo, Scorpio, Bolero
• Premier Automobiles Limited: Sigma, RiO
• San Motors: Storm
• Tata Motors: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo,
Safari, Xenon, Aria ,

JAIPURIA INSTITUTE OF MANAGEMENT

• Maruti Swift. Maruti Suzuki, a subsidiary of Japan's Suzuki Motor, is the largest
automobile manufacturer in India.
• BMW India: 1 Series, 3 Series, 5 Series.
• Fiat India[(in collaboration with Tata Motors): Grande Punto, Linea, Palio Stile.
• Ford India: Ford Figo, Ikon, Fiesta, Endeavour.
• General Motors India
• Chevrolet (CSPIL) Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
• Honda Siel: Jazz, City, Civic, Accord.
• Hyundai Motor India: Santro, i10, i20, Accent, Verna Transform, Sonata Transform.
• Mahindra Renault Logan
• Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4,
Omni, Versa, Eeco, Gypsy, Grand Vitara
• Mercedes-Benz India: C-Class, E-Class.
• Mitsubishi (in collaboration with Hindustan Motors)[66]: Lancer, Lancer Cedia, Pajero
• Nissan Motor India: Micra.
• Toyota Kirloskar: Etios, Corolla, Innova, Camry.
• Volkswagen India: Polo, Vento, Jetta, Passat.
• Audi India: A4, A6, Q5.
• Škoda Auto India: Fabia, Octavia, Laura, Superb.

JAIPURIA INSTITUTE OF MANAGEMENT

 What is CRM?
CRM stands for Customer Relationship Management. It is a process or methodology used to
learn more about customers' needs and behaviors in order to develop stronger relationships with
them. There are many technological components to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more useful way to think about CRM is as a process that
will help bring together lots of pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends.
CRM helps businesses use technology and human resources to gain insight into the behavior of
customers and the value of those customers.
CRM Software
Sales Force Automation
• Contact management
Contact management software stores, tracks and manages contacts, leads of an enterprise.
• Lead management
Enterprise Lead management software enables an organization to manage, track and forecast
sales leads. Also helps understand and improve conversion rates.
eCRM or Web based CRM
• Self Service CRM
Self service CRM (eCRM) software Enables web based customer interaction, automation of
email, call logs, web site analytics, campaign management.
• Survey Management Software
Survey Software automates an enterprise's Electronic Surveys, Polls, Questionnaires and enables
understand customer preferences.
Customer Service
• Call Center Software
• Help Desk Software
Partner Relationship Management
• Contract Management Software
Contract Management Software enables an enterprise to create, track and manage partnerships,
contracts, agreements.
Example: Upside Software, Accruent Software, diCarta, I-Many.
• Distribution management Software

JAIPURIA INSTITUTE OF MANAGEMENT

 Featured CRM Product: NetSuite CRM+ software delivers powerful customer relationship
management capabilities, including sales force automation (SFA), marketing automation,
customer support and service, and flexible customization, all in a web-based CRM
solution.
Using CRM, a business can:
• Provide better customer service
• Increase customer revenues
• Discover new customers
• Cross sell/Up Sell products more effectively
• Help sales staff close deals faster
• Make call centers more efficient
• Simplify marketing and sales processes
The advantages can be summarized according to the Feature
Marketing
• Make intelligent business decisions with enhanced customer insights
• Increase marketing velocity and speed to market
• Maximize visibility into and control of your entire marketing process
• Drive customer demand
• Increase returns on your marketing investments
Sales
• Grow profitable relationships
• Maintain focus on productive activity
• Eliminate barriers to productivity
• Improve sales efficiency Service
• Transform service into a profitable line of business
• Increase customer loyalty
• Drive revenue
• Reduce costs of customer service and field service
• Decrease service giveaways
Web channel enablement
• Drive revenue and extend market reach
• Increase customer convenience and satisfaction
• Reduce the cost of sales and support
1

JAIPURIA INSTITUTE OF MANAGEMENT

• Build lasting customer loyalty
• Improve sales and service profitability
Running an interaction center
• Increase customer satisfaction
• Improve credibility with your customers
• Increase revenue and productivity
• Manage the customer interaction life cycle
Partner channel management
• Boost revenue through channel collaboration
• Reduce indirect channel support costs
• Increase partner satisfaction and ease of doing business
• Maximize value to your customers by enabling your partners
The types of data CRM projects collect
• Responses to campaigns
• Shipping and fulfillment dates
• Sales and purchase data
• Account information
• Web registration data
• Service and support records
• Demographic data
Web sales data Marketing
CRM aligns marketing processes and drive customer demand using functionality to enhance
management of marketing resources, segments and lists, campaigns, leads, trade promotions,
and marketing analytics.
Sales
CRM enables you to acquire, grow, and retain profitable relationships with functionality for
sales planning and forecasting and the management of territories, accounts, contacts, activities,
opportunities, quotations, orders, product configuration, pricing, billing, and contracts.
Service
CRM can drive service revenue and profitability with support for service sales and marketing.
More effectively manage service orders, contracts, complaints and returns, in-house and depot
repairs, warranties, resource planning, e-service, and service analytics. Functionality to support
call centers, field service, and e-service provides flexible delivery options.

JAIPURIA INSTITUTE OF MANAGEMENT

Partner channel management
With CRM you can attain a more profitable and loyal indirect channel by managing partner
relationships and empowering channel partners. Improve processes for partner recruitment and
management, communications, channel marketing and forecasting, collaborative selling, partner
order management, channel service, and analytics for partners and channel managers.
Running an interaction center
Customer interaction centers are places where you meet your customer face to face. With CRM,
you can maximize customer loyalty, cut costs, and boost revenue by transforming your
interaction center into a strategic delivery channel for marketing, sales, and service efforts across
all touch points. Effectively handle activities such as telemarketing, telesales, customer service,
human resources, IT support, and interaction center management.
Web channel enablement
Increase sales and reduce transaction costs by turning the Internet into a valuable sales,
marketing, and service channel for businesses and consumers. Increase profitability and reach
new markets with a fully integrated Web channel, including support for e-marketing, e-
commerce, e-service, and Web channel analytics

Business communications management

Manage inbound and outbound contacts across multiple locations and channels. Integrate
multichannel communications with customer-facing business processes to provide customers
and partners with seamless, consistent experiences across all channels, including voice, text
messaging, the Web, and e-mail.
Real-time offer management
Turn all customer interactions into opportunities to build customer relationships and generate
revenue. Plan, develop, and execute cross-selling, up-selling, and retention offers; service-level
agreements; and more. Take appropriate subsequent actions to enhance customer relationships
and ensure relevant and personalized customer interactions.

JAIPURIA INSTITUTE OF MANAGEMENT

Trade promotion management
CRM will boost a company's brand presence and profits with visibility into and control of all
trade related processes. Increase accounting accuracy of trade and financial results with back-
office integration. Gain key business insights to help you optimize trade activities. Increase your
trade promotion success with analytics and enhanced management of trade funds, promotions,
claims, and retail execution.
BUSINESS STRATEGY & CRM

Three key phases:

• Customer Acquisition.

• Customer Retention.

• Customer Extension.

Three contextual factors:

• Marketing Orientation.

• Value Creation.

• Innovative IT.

JAIPURIA INSTITUTE OF MANAGEMENT

Customer Acquisition

This is the process of attracting our customer for the first their first
purchase. We have acquired our customer.

Customer Retention

Our customer returns to us and buys for a second time. We keep them as a
customer. This is most likely to be the purchase of a similar product or
service, or the next level of product or service.

Customer Extension

- Our customers are regularly returning to purchase from us. We introduce

products and services to our loyal customers that may not wholly relate to
their original purchase. These are additional, supplementary purchases. Of
course once our loyal customers have purchased them, our goal is to retain
them as customers for the extended products or services.

Marketing Orientation

- Means that the wholes organization is focused upon the needs of customers.
Customer needs are addressed by the Three Levels of a Product whereby the
organizations not only supplies the actual, tangible product, but also the core
product and its benefit, and also the augmented product such as a warranty and

JAIPURIA INSTITUTE OF MANAGEMENT

 customer service. Marketing orientation will focus upon the needs of consumers
for all three levels of a product. (N.B. 'market' orientation and 'marketing'
orientation are not the same).

Value Creation

- Centers on the generation of shareholder value based upon the satisfaction of

customer needs (as with marketing orientation) and the delivery of a sustainable
competitive advantage.

Innovative IT- is exactly that - Information Technology must be up-to-date. It should

be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software
are not the entire story for CRM, it is vital to its success. CRM software collects data on
consumers and their transactions. Huge databases store data on individuals and groups of
individuals. In some ways, CRM means that an organization is dealing with a segment of
one person, since every consumer displays different purchasing habits and preferences.
Organizations will track individuals, and try to market products and services to them
based upon similar buyer behavior seen in other individuals (e.g. When Amazon tells
you that customers that viewed/bought the same product as you, also bought another
product).In

AUTOMOTIVE industry , Companies focus upon the needs of customer, not only providing
the tangible product i.e. CAR but also augmented product such as warranty, customer
service, providing more services than competitors, distributing free gifts, free vehicle check-
up, etc & now-a-days almost every big company use CRM software in collecting data on
consumers & their transaction, providing them customized service . After every new launch
of a car, companies give information about that same product to their loyal customers. Not
only companies stick to that car only but tries to sell accessories also like seat covers, Alloy

JAIPURIA INSTITUTE OF MANAGEMENT

wheels, music system so that customer doesn’t have to go to several places & quite often
dealers give discount also in these items as a CRM business strategy .

CRM Systems and Implementation

These are some of the key features for which AUTOMOTIVE SECTOR applies CRM
software:

• Sales management shares customer information between sales, service and parts
departments
• Vehicle management gives complete vehicle data along with sales, service and
financial history, as well as dealer and license information and owner and contact
information
• Activity and e-mail management systems link e-mails with associated contacts, leads
and opportunities
• Service management increases customer loyalty by enabling consistent, personalized
interaction across all customer touch points including, telephone, e-mail, Web,
wireless devices and in-person meetings.
• CRM at HONDA MOTORS
•
• Faced with increasing competition from abroad, a cyclical business environment, and
the challenge of a widely dispersed dealer network, Honda Motors, a comprehensive
customer relationship management (CRM) solution designed specifically for
companies in the automotive industry.
• Seamlessly integrated with Honda Motors’ dealer management system and SAP
back-office applications, has delivered significant benefits across the extended
organization, including improved customer satisfaction, increased revenue and
productivity, and reduced costs.
• To address its competitive challenges, Honda Motors began standardizing its
customer-facing business processes companywide,
• • Laying the foundation for stronger dealer relationships,
• • Improved operational efficiency and effectiveness,
• • A better customer experience.
• This has posed numerous challenges, as it involves working with 250 dealer
organizations and more than 1,600 locations staffed by more than 10,000 salespeople
across India. In conjunction with its reengineering effort, Honda has deployed a
robust technology platform to improve the flow of information across the enterprise.

JAIPURIA INSTITUTE OF MANAGEMENT

• • The platform consists of an innovative Dealer Management System, which helps
individual dealerships with everything from inventory management and credit
reporting to calculating commissions, and
• • Honda Motors, a comprehensive Customer Relationship Management (CRM)
solution designed specifically for companies in the automotive industry.
• By tightly integrating with its dealer management system, Honda has streamlined
transactions and ensured that dealers capture customer data as a part of their normal
operations. The solution provides a 360-degree view of customers to the extended
organization, with appropriate visibility controls to ensure that one dealer is not privy
to information from another. To further enlist dealer support, Honda Motors involved
dealers throughout the solution, configuration and deployment process. Integrating
with their dealer management system ensured that dealers would immediately see the
value in the solution. This has helped the company overcome the usual resistance to
change and gain rapid acceptance from dealers.
• Implementation of CRM
• Honda Motors has taken a phased approach to the implementation, with the goal of
achieving success in each phase before moving forward.
• Phase 1: Focus on capturing customer and vehicle data and automating routine tasks.
• Phase 2: Focus on leveraging data to improve customer interactions and streamline
product development and planning.
• Phase 3: Focus on tuning the system and delivering additional value-added services
to customers.
• Siebel Automotive has been closely integrated with a wide array of SAP back office
applications.
•
• Functionalities of the Solution
• • Inventory management and parts location
• • Pricing and tax calculations adjusted for each dealer’s requirements.
• • Comprehensive sales and reporting functionality built into Siebel Automotive
enables Honda to distribute sales targets to its dealers & roll up sales numbers across
the country.
• • real-time data flow between the Siebel front end and SAP back end
• • Provides multi organization support
• • Can be deployed easily over the Internet
• • Provides robust partner management capabilities
• ELEMENTS OF CRM
• CRM Vision

JAIPURIA INSTITUTE OF MANAGEMENT

• Honda Motors has more than 15,000 Honda Motors dealer personnel in over 1,000
dealer locations. Its endeavor is to get closer to its customers by obtaining a 360–
degree view of the customer and design better offerings based on customer demands
and feedback. The objectives of the CRM program are:
• • Improve its management effectiveness
• • To meet increasing competition from global players
• Overcome the difficulties of a widely dispersed dealer network of the way to
apologize for the error.
• Simultaneously they provide technician who visit their home place in order to attend
the issues and rectify them to satisfaction level. Follow up calls are made to ensure
that how efficiently their problems were resolved.
•
• Customer Valued Experience
•
• The automotive industry is highly competitive world over. The customer in this
industry is pampered by various kinds of vehicular designs and value propositions
like mileage, comfort, style, brand name etc. Apart from the mentioned attributes of
the product, what customers would value is the after sales service. i.e., how the
company listens to them after sale of the vehicle. In short, customers want their
vehicle to be taken care of by the company post sale.
•
• Customer segmentation for Honda Motors
•
• The automobile industry is divided into two main segments- the commercial and
utility vehicle segment and the passenger car segment. Honda Motors is the only
Indian automobile company which has a large presence in both the commercial
vehicle and the passenger car segment.
• Commercial vehicles In the commercial vehicle space Honda Motors is the market
leader with a market share of 60%. It ranks amongst the top 2 global automakers in
terms of the global sales of commercial vehicles. This shows the importance of this
customer segment in the overall scheme for HONDA motors
• In the commercial vehicles segment the company has done a need based
segmentation of the customers. The customers are segmented based on tonnage of
vehicles required as well as the specific use of the vehicles. The company serves the
customers with medium and heavy vehicles, light vehicles, small vehicles and busses.
Honda Motors also supplies specially designed vehicles to the armed forces. On basis
of specific use the company segments the customers based on types of vehicles like
rigid trucks, tractor trailers and tippers..

JAIPURIA INSTITUTE OF MANAGEMENT

• Passenger Vehicles Honda motors is also a very important player in the passenger
vehicle segment of the automobile sector. The company entered the passenger
vehicle segment in late 1990s and enjoys around 16 % share in this segment.
• In the passenger vehicle segment the main customer segmentation is based on the
price of the cars. Indian customers are highly discerning, educated and well informed.
They are price sensitive and put a lot of emphasis on value for money. Vehicles
priced between Rs. 12,00,000 – 18,00,000 form the largest segment in the passenger
car market.
• The data about the sales of the cars in various segments is shown in the adjoining
graph.
• Honda motors also segments the customers based on the type of vehicles they buy.
Even in the passenger car segment there are some big customers. Honda is very
popular among
• elite section because of its good fuel efficiency and performance blend. The SUVs
from Honda are also very popular with call centres to ferry their employees as they
are very spacious and comfortable.

• HONDA
MOTORS – HR and Organization for CRM
• Executive Selection Scheme (ESS)
• Honda Motors has always strived towards excellence both in its efforts towards total
integration as well as in recognising its talented employees. The Company is
constantly creating prestigious programmes to reward and retain its outstanding
employees. The Executive Selection Scheme is one such programme, which is highly
sought after by Honda Motors employees. It is a matter of pride and prestige to be a
part of the ESS selection process and emerge a winner.

JAIPURIA INSTITUTE OF MANAGEMENT

• ESS is a fast track programme for accelerated growth of high potential professionals.
This facilitates their early advancement to challenging and visible assignments
through a very systematic procedure.
• The selection involves a 3 stage process:
• * Written Test
• * Power Interview
• * Assessment Centre
• Short-listed candidates are required to go through an interview with the executive
directors.
• Candidates selected gain a huge lead in terms of promotion and learning. They are
promoted to Manager's level thereby saving almost 10 to 13 years of work time. The
successful candidates are relieved from their current jobs and put on various project
based training programmes under the guidance of senior managers in the Company.
If the candidates do not possess management education, they undergo a 4 months
MEP at IIM, Ahmedabad.
• After successful completion of training the candidates are mandatorily rotated across
departments to acquire general management skills.
• The ESS is a jewel in Honda Motors overall profile as it provides a platform for
every employee of the Company to perform and achieve maximum potential.

• Implementation of IT and Technological Solutions at HONDA MOTORS

• The highly respected Honda Motors Ltd. has a strong tradition of entrepreneurship.
The com¬pany’s business strategy calls for reaching beyond the borders of India to
enter new markets for its Accord, the innovative luxury sedan for the upper class.
• One of the major drivers of success at Honda Motors Ltd. is its ability to fully exploit
infor¬mation technology to drive business goals. The company was an early adopter
of CAD and CAM systems to speed the design of the sedans. The company also uses
Siebel Systems to manage its vast customer relationship network and SAP® for all
critical business services, such as logistics, supplier relations management, customer
relationship management, human resources (HR), and finance.
• IT is an integral part of every busi¬ness process from design to delivery and the
power of IT has been extensively leveraged for the sedan project. The design
processes used more digital content than ever before. State-of-the-art CAD and CAM
services integrated design across multiple disciplines, making it possible for our
designers to harness and benefit from their inherent ability to innovate. IT helped the
company shrink the design cycle time.

JAIPURIA INSTITUTE OF MANAGEMENT

• BSM tools from BMC Software played a key role in tracking and controlling all
components of IT services and automating the management of the IT infrastructure
which is vital to the design and planning for manufacture of the Civic as well as
running day-to-day business processes.

• EXCELLENCE IN OUTSOURCING
• Following its strategy of outsourcing noncore activities, TML has outsourced its IT
applications to HONDA Technologies Ltd. and its IT infrastructure to IBM.® The
outsourcing decision has proven to be a wise one. Honda Motors reaped significant
benefits through the outsourcing initiatives. TML was recognized in 2007 and
conferred the “SAP Ace” award for its SRM & Warehouse Management
implementations. It also received the “Uptime Championship Award” at the CIO 100
event in the same year.
• Initially, the outsourcing approach posed several challenges. Technology silos were
performing adequately. However, a flexible service-oriented management framework
was required to link the silos and provide a comprehensive a view of the IT landscape
underlying a given business process.
• To make this framework a reality, HMSI decided to adopt IT service management
concepts outlined in the ISO 20000:05 international standards, as well as best
practices outlined in the IT Infrastructure Library® (ITIL®) Version 3. In addition,
the company decided to establish a service-oriented management architecture that
treated IT services as assets and managed them on a lifecycle basis.

• PUTTING BMC SOLUTIONS TO WORK

• BMC has provided visibility into the entirety of services components across business
process chains. It has also integrated the various IT service management disciplines
into a single, unified solution.
• HSCI started with the out-of-the-box capabilities of the BMC Remedy IT Service
Management Suite to establish a baseline of the IT application and infrastructure
landscape across all technol¬ogy pillars. The company used the applications’
embedded ITIL-compatible controls —without modification — to define roles,
responsibilities, and authorities required in the support groups.
• HSCI realized immediate benefits from the transition to the BMC applications, which
served as the software framework for managing the interactions and process
relationships among all the support groups managing the IT infrastructure underlying
business services. A service-oriented organizational structure was designed and
configured in the BMC Remedy applications.
1

JAIPURIA INSTITUTE OF MANAGEMENT

• A major innovation in the configuration is the use of logical architectural definitions
for the support group infrastructure. Logical role names for technical support staff
login allowed uniformity of definitions across the entire support community
regardless of whether the employee is internal to HSCI or outsourced.
• The naming convention encompasses competency levels that enable the incident
coordinator to assign tickets based on complexity. This feature has real value in a
multisite support group where names by themselves mean very little. Service
managers can now plan staffing on the basis of competencies and have a transparent
view of support staff effort and load across locations.
• A SINGLE POINT OF CONTACT FOR IT SERVICES
• HSCI used BMC Remedy Service Desk and the end-user console to establish an
outsourced IT service desk that is the single point of contact between the IT user
community and the IT ser¬vice providers. This new service desk consolidated more
than 25 different help desks across the country, making it simple and straightforward
for users to get assistance and report problems. This also helps to project a single
unified face of IT to the customers although multiple IT service providers are
involved in the complete services to the customer.
• An innovative, segregation-of-duties approach ensures that the vendor providing a
particular ser¬vice is not also responsible for tracking and reporting on that service.
This was done by creating a special group within the IT service desk for ensuring
satisfactory closure of tickets An innovative, segregation-of-duties approach ensures
that the vendor providing a particular ser¬vice is not also responsible for tracking and
reporting on that service. This was done by creating a special group within the IT
service desk for ensuring satisfactory closure of tickets and moni¬toring status of
paused tickets. HSCI is required to be SOX compliant. Statutory requirements for
ensuring segregation of responsibilities were met by allocating responsibilities for
recording, classification, and routing by one vendor, and closing verification,
customer satisfaction assurance, and performance reporting by another.
CLIMBING THE IT SERVICE MANAGEMENT MATURITY LADDER
BMC solutions have helped HSCI make significant progress toward reaching the top
of the IT service management maturity ladder. The applications, which paid for
themselves within the first year, are delivering quantifiable benefits to HSCI.
The applications have brought greater efficiency to the IT environment, enabling the
staff to dra¬matically reduce the number of trouble calls. For example, calls related
to desktops are down 40 percent, calls from supplier relationship management are
down 80 percent, and server support calls are down eight percent.
• Most importantly, by keeping critical systems available and operating at peak
performance, the company reduced the development cycle for the sedan compared

JAIPURIA INSTITUTE OF MANAGEMENT

 with earlier platforms enabling the company to get this exciting new offering to
market faster and at a lower cost

LOYALTY PROGRAMS
• CITY Circle
• Honda Motors Privileges Program – CITY Circle
• At Honda Motors, it is Endeavour to spoil you with superior quality of vehicles and
value-added services. With this in mind, Honda Motors have made an effort to
enhance your experience with your Indigo beyond the road. The benefits of becoming
a member of the CITY Circle range from getting special offers and discount coupons,
interacting with the Indigo community on a regular basis and being part of a group
where you can share your views, experiences and more.
• Honda Motors offers you more than just a car. HONDA Motors offer you an
experience that will spoil you for more. Accessories for your car, world-class
workshops with state-of-the-art equipment and high-priority service by extremely
qualified engineers are just steps towards giving you a complete ownership
experience. HONDA Motors provide you with a lot of value-added services and
timely information on what needs to be done to keep your car in the best condition
and looking new.
• We also reward our customers with points made on purchases with the Empower
Card - a card that gives you several exclusive benefits from Honda Group companies
and select partners. Other privileges available to our customers include receiving
information about the latest happenings, service alerts, and special events. Our
customers also have a chance to get exclusive benefits such as loyalty, exchange and
referral bonuses.
• At Honda Motors, services and products are delivered courteously, quickly,
efficiently and to your satisfaction. Honda Motors hope you have a great experience
with us. Honda Motors promise to do our best to satisfy your needs to the best of our
abilities.

Honda Club

JAIPURIA INSTITUTE OF MANAGEMENT

• Honda Motors offers you more than just a car. Honda Motors offer you an experience
that will change the way you look at your car. Accessories for your car, world-class
workshops with state of- the-art equipment, and high-priority service by extremely
qualified engineers are just steps towards giving you a complete ownership
experience. Honda Motors provide you with a lot of value-added services and timely
information of what needs to be done to keep your car in the best condition and
looking new.
• We also reward our customers with points made on purchases with the Empower
card - a card that gives you several exclusive benefits from Honda Group companies
and select partners. Other privileges available to our customers include receiving
information about the latest happenings, service alerts, and special events. Our
customers also have a chance to get special benefits such as loyalty, exchange and
referral bonuses.
• At Honda Motors, the best of services and products are delivered courteously,
quickly, efficiently, and to your satisfaction. Honda Motors hope you have a great
experience with us. Honda Motors promises to do our best to satisfy your needs to
the best of our abilities.
• Accessories and Service Coupons
• Apart from the various accessories and service packages you will also receive several
offers and discounts on accessories and services. An offer coupon booklet is enclosed
along with this booklet.
• Privileged Offers
• We also run attractive retail offers for our car owners from time to time, in addition
to retail schemes applicable to others. These may include loyalty or exchange bonus
on additional purchase of Honda cars, or referral bonus if you convince a friend to
purchase your favorite car.
• We look forward to a relationship that gets stronger with time. Honda Motors
constantly endeavor to change the ownership experience of every Honda owner and
your suggestions and feedback would not just encourage us, but also help us improve
our service standards in times to come. We’re sure you’ll enjoy the experience of
owning and driving one of the finest cars on the road, the CITY. Happy driving!

CRITICAL ANALYSIS
• Benefits Obtained
• •Integrating Siebel Automotive with dealer management system ensured that the
dealers would immediately see the value in the solution. This has helped overcome
the usual resistance to change and gain rapid acceptance from dealers.

JAIPURIA INSTITUTE OF MANAGEMENT

 • •Further, the user-friendly interface has simplified the process of training Honda
Motors’ 10,000-plus dealer sales force.
• •Honda Motors links its 1,600 customer touch points with its centralized data centre
in Mumbai using a combination of VSATs and high-speed virtual private networks.
• •Siebel Automotive has transformed the organization and made it truly customer
centric.
• •The organization has overcome the challenges of relying on disparate sources of
information, as well as having inconsistent business processes.
• •Employees and dealers are much more responsive and can serve customers more
efficiently and effectively—drawing upon real-time, centralized customer and vehicle
data.
• •Convenience to dealers as they can view their entire stock of vehicles and see how
inventory was ageing, thus improving control.
• •Siebel Automotive has also helped dealers respond to customer queries regarding
vehicles that aren’t in a dealer’s stock, but which can be ordered directly from Honda
Motors.
WHAT SALES & CUSTOMER SATISFACTION INDEX SAY

• As per the Sales Satisfaction Index (2009) and Customer Satisfaction Index (2008),
Honda Motor ranks among top. This proves that they have utilized the CRM
approach and application of technology is sufficient because there is an actual
understanding of what customer values most. As still on the dimensions mostly
preferred by the customers Honda motors rose high.

Customer Relationship Management by Maruti Suzuki India Ltd.

In these competitive times the challenge is to keep inventing newer ways of doing things
to keep the customers in your fold.

Over the last few years, the company strengthened the existing practices and
experimented with many new initiatives by way of kaizens (continuous improvements) to
delight its customers.

These initiatives ranged from product design and quality to network expansion, and
included new service programs to meet unsaid needs of customers.

The company has retained its competitive edge by offering high quality products.

JAIPURIA INSTITUTE OF MANAGEMENT

 In the field, the products are supported by rapidly expanding networks. The company has
diverse networks for new cars, spares, service, pre owned cars and so on, and all of them were in
expansion mode last year to enable the company get closer to the customer.

Servicing customers 24X7 ..... 365 days....

The company takes great pride in sharing that customers have rated Maruti Suzuki first
once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia
Pacific. It is 9th time in a row.

The company was first car company in India to launch a Call Centre in the year 2000.

The award mirrors the company's commitment towards "Customer Obsession”.

Key Initiatives

Car pickup & delivery facility for women car owners.

Quote Unquote: "The study finds that vehicle pickup and delivery before and after
service has a strong impact on customer satisfaction. In particular, customers who say that their
vehicle was picked up from their doorstep before service and delivered to the same point after
service are notably more delighted with their after-sales service experience, compared with
customers who do not receive this service...."

Maruti also launched mission to promote safe driving habits jointly with Institute of
Driving Training and Research.

It also launched ‘Dil Se’- a special program for Indians living abroad or NRIs, to
facilitate them to gift Maruti cars online to friends and relatives at home.

Online club ‘Swift Life’ is made for all Swift owners.

Setting up "Express Service Bays" & "2 - Technician Bays"

As the name suggests the company set out to delight its

customers by offering them faster car service by introducing new
concepts such as Express Service Bays & 2- Technicians Bays.

JAIPURIA INSTITUTE OF MANAGEMENT

 These are done for customers who are hard pressed for time.

Both the initiatives undertaken in this direction have helped improve customer interface
and also helped increase the productivity and capacity of existing workshops.

Mega Camps

The company aggressively conducts 'Mega Camps' throughout the

country round the year.

Activities undertaken during a mega camp include complimentary

car wash, AC & Pollution check up, oil and fuel top ups, wheel
alignments etc.

Apart from mega camps workshop camps like A/C checkup camps, PUC and general
check-up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of
customer connect initiatives.

Service at Door Step through Maruti Mobile Support

Another unique initiative is the door step service facility through Maruti
Mobile Support.

Maruti Mobile Support is a first of it's kind initiative and is expected not
only to help the company reach out customers in metro cities but also as a mean
to reach semi urban /rural areas where setting up of new workshop may not be
viable

Car Safety device: Immobilizer

The company used technology to meet customer needs and even

delight them. Following feedback that the company's cars were more prone
to theft owing to their resale value, the company worked on an anti-theft
immobilizer or "I-Cats;" system for all its new cars.

Complete car needs

The company's effort of providing all car-related needs -- from learning to drive a car at
Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the
existing car for a new one -- under one roof at dealerships also enhances customer satisfaction.

JAIPURIA INSTITUTE OF MANAGEMENT

 3

JAIPURIA INSTITUTE OF MANAGEMENT

 1

JAIPURIA INSTITUTE OF MANAGEMENT

THE COMMON CRM TOOLS USED BY ALL THE DEALERS

JAIPURIA INSTITUTE OF MANAGEMENT

 1

JAIPURIA INSTITUTE OF MANAGEMENT

 1

JAIPURIA INSTITUTE OF MANAGEMENT

 CHAPTER-
RESEARCH METHODOLOGY

The methodology adopted to carry out the project was divided into three phases :
Phase I : Data Collection
Phase II : Data Analysis
Phase III : Conclusions
Research as we are focusing on the what are the recent trends in the CRM activities in the
automobile dealers and what are their consequences.

Population: Population includes the people of Jaipur(rajasthan).

Proposed Sample Size: 100 customers

Research Tool: Questionnaire

3.1 DATA COLLECTION

The study is based on primary data derived through sample survey using pre-tested structured
instrument (questionnaire). Data was collected from respondents in
We collected information from both primary & secondary data. We divided our group of 7
members into 3 groups and visited various dealer’s showroom of, MARUTI & HYUNDAI and
asked their respective relationship managers about the company’s offerings, to get detailed
knowledge of CRM applications & practice in real business scenario.

3.2 DATA ANALYSIS

In order to extract appropriate findings of the questions mentioned in the questionnaire, 2 major
tools have been used in this research these are as follows:-
• CHI-Square test through SPSS (statistical software)
• Correlation through SPSS.

JAIPURIA INSTITUTE OF MANAGEMENT

CHI SQUARE TEST
In probability theory and statistics the chi-square distribution is one of the most widely
used theoretical probability distributions in inferential statistics e.g.,in statistical significance
tests. It is useful because, under reasonable assumptions, easily calculated quantities can be
proven to have distributions that approximate to the chi-square distribution if the null hypothesis
is true.
The best-known situations in which the chi-square distribution is used are the common chi-
square tests for goodness of fit of an observed distribution to a theoretical one, and of
the independence of two criteria of classification of qualitative data.
For the chi-square goodness-of-fit computation, the data are divided into k bins and the test
statistic is defined as

where is the observed frequency for bin i and is the expected frequency for bin i.
The key points for the Chi-Square test are :
• Non Parametric Test
• Tests the association between two variables
• Used for categorical variable
• It assumes that the observations are randomly sampled from the population
• All observations are independent
It does not make any assumptions about the shape of the distribution

CORRELATION
In statistics, correlation (often measured as a correlation coefficient, ρ) indicates the strength and
direction of a linear relationship between two random variables.

Pearson's product-moment coefficient

A number of different coefficients are used for different situations. The best known is
the Pearson product-moment correlation coefficient, which is obtained by dividing

JAIPURIA INSTITUTE OF MANAGEMENT

the covariance of the two variables by the product of their standard deviations. Despite its name,
it was first introduced by Francis Galton.
Mathematical properties
The correlation coefficient ρX, Y between two random variables X and Y with expected
values μX and μY and standard deviations σX and σY is defined as:

Where E is the expected value operator and cov means covariance. A widely used alternative
notation is

Since μX = E(X), σX2 = E [(X - E(X))2] = E(X2) − E2(X) and likewise for Y, and since E[(X − E(X))
(Y − E(Y))] = E(XY) − E(X)E(Y), we may also write

The correlation is defined only if both of the standard deviations are finite and both of them are
nonzero. It is a corollary of the Cauchy–Schwarz inequality that the correlation cannot exceed 1
in absolute value.
The correlation is 1 in the case of an increasing linear relationship, −1 in the case of a decreasing
linear relationship, and some value in between in all other cases, indicating the degree of
linear between the variables. The closer the coefficient is to either −1 or 1, the stronger the
correlation between the variables.
If the variables are independent then the correlation is 0, but the converse is not true because the
correlation coefficient detects only linear dependencies between two variables. Here is an
example: Suppose the random variable X is uniformly distributed on the interval from −1 to 1,
and Y = X2. Then Y is completely determined by X, so that X and Y are dependent, but their
correlation is zero; they are uncorrelated. However, in the special case when X and Y are jointly
normal, uncorrelatedness is equivalent to independence.

JAIPURIA INSTITUTE OF MANAGEMENT

A correlation between two variables is diluted in the presence of measurement error around
estimates of one or both variables, in which case disattenuation provides a more accurate
coefficient.
Correlation Negative Positive
Interpretation of the size of a correlation Small −0.3 to −0.1 0.1 to 0.3
Several authors have offered guidelines for the Medium −0.5 to −0.3 0.3 to 0.5
interpretation of a correlation coefficient. Cohen Large −1.0 to −0.5 0.5 to 1.0
(1988),has observed, however, that all such criteria are in
some ways arbitrary and should not be observed too strictly. This is because the interpretation of
a correlation coefficient depends on the context and purposes. A correlation of 0.9 may be very
low if one is verifying a physical law using high-quality instruments, but may be regarded as
very high in the social sciences where there may be a greater contribution from complicating
factors.
Along this vein, it is important to remember that "large" and "small" should not be taken as
synonyms for "good" and "bad" in terms of determining that a correlation is of a certain size. For
example, a correlation of 1.0 or −1.0 indicates that the two variables analyzed are equivalent
modulo scaling. Scientifically, this more frequently indicates a trivial result than a profound one.
For example, consider discovering a correlation of 1.0 between how many feet tall a group of
people are and the number of inches from the bottom of their feet to the top of their heads.

3.3 CONCLUSION
In the final phase of research methodology, conclusions were drawn.

JAIPURIA INSTITUTE OF MANAGEMENT

 LIMITATIONS
• The period of study we were having with was not appropriate with the region defined
in the study as it require more time.

• The response that is given by some of the customers about the company who’s car
they own may contain some biasness.

• It was very difficult to get the data from the dealers in the region because they are not
willing to disclose the data and hence the analysis that has been done on the basis of
available data may contain some biased results.

• As we have taken the sample size of 100 people so it is confined to only 100 people
and hence we have taken the whole population as 100 so the result could vary if the
sample size has been changed or the people were changed.

• The result of the study is applicable to the survey area alone.

• Unwilling respondents also affect the result of the research.

JAIPURIA INSTITUTE OF MANAGEMENT

 CHAPTER-
ANALYSIS & INTERPRETATION

JAIPURIA INSTITUTE OF MANAGEMENT

 CHAPTER-
CONCLUSION

JAIPURIA INSTITUTE OF MANAGEMENT

 ANNEXURES

JAIPURIA INSTITUTE OF MANAGEMENT

 RECOMMENDATIONS

• In CRM the automobile dealers have to learn from other service industry such as
airline service industry. Each time a customer approaches the service agent his entire
history was flashed on the screen.

• Customer knowledge can be used to offer customer specific offer on purchase of

second vehicle in family.

• Many organizations operating in automobile market still do not differentiate their

CRM activities at the segment level. They contact each prospect with the same
frequency instead of applying a level effort consistent with the cost of acquisition and
profit potential. Their unrefined use of resources not only leads to wasted investment
but also can cause annoyance among customers who are either being oversupplied or
undersupplied with attention.

• Proper training should be given to the employees on the new CRM technology that is
being adopted by the organization.

• There should be implementation of Microsoft dynamic CRM which is specially

designer for multitasking for businesses to maximize their investment and enhance
productivity.

• Our research has analyzed that the most of the customer are diverting their loyalty
from the one dealer due to the reason of some kind of discrepancies in issue resolution
so each dealer should have an independent issue resolution department under their
CRM to better understand their need.

JAIPURIA INSTITUTE OF MANAGEMENT