Crm Initiatives In Hyundai Motors

LOVELY SCHOOL OF BUSINESS

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TERM PAPER

OF

CUSTOMER RELATIONSHIP MANAGEMENT

ON

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SUBMITTED TO: SUBMITTED BY:

MS.YOGITA SHAINI RUCHIKA RAJAWAT

ROLL NO: A28

SEC: 1709

REG NO: 3020070011

Acknowledgement

Before we embark upon the details of this project, let me take this opportunity to express our
heartiest gratitude towards the people who have provided invaluable help & support through the
entire duration the project. I am thankful to our facilitator MS. YOGITA SHAINI for his
continuous guidance & support.

I would like to thank her for giving us excellent suggestion and affectionate, encouraging
through development of project and for devoting their precious time. We offer thanks to them for
co-ordination and grateful to all our well-wishers who extended their support and for their
valuable help throughout the work.

OBJECTIVE

To understand the CUSTOMER RELATIONSHIP MANAGEMENT in automotive industry (in

passenger cars) & than sync it with CRM of HYUNDAI MOTORS.

INTRODUCTION OF TOPIC
To understand the real business scenario about the practice of CRM in Indian Automotive
industry & than compare it with HYUDAI motors in passenger cars.

The automobile industry in India is the tenth largest in the world with an annual production of
approximately 2 million units—is expected to become one of the major global automotive
industries in the coming years. A number of domestic companies produce automobiles in India
and the growing presence of multinational investment, too, has led to an increase in overall
growth. Following the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
The monthly sales of passenger cars in India exceed 100,000 units. According to Society of
Indian Automobile Manufacturers in 2008-09 the cumulative growth of the Passenger Vehicles
segment during April 2008 – March 2009 was 12.17 percent. Passenger Cars grew by 11.79
percent, Utility Vehicles by 10.57 percent and Multi Purpose Vehicles by 21.39 percent in this
period.

BRIEF ABOUT COMPANY

The Hyundai Motor Company is one if not the most dynamic automobile producer in any
developing country. This is remarkable considering that the company is closing in on 40 years of
existence. To outline its history one must also look into the life and times of its founder Chung
Ju-Yung. It cannot be told without outlining the founders rise from the rice fields of Korea to the
circumstances that let him to acquire the knowledge and determination that led to the creation of
one of the fastest growing family owned businesses into a global competitor. His creation of
numerous companies eventually let to the establishment of the Hyundai Group. The Hyundai
Motor Company was one of these. He created it and transformed it from a mere assembler of
Ford models to a designer and exporter of its own cars and engines in less than four decades. It
has already become a major global player with plants and dealerships that span six continents.
The company is one of the largest and most diversified business organizations with 45 affiliated
domestic companies and 254 overseas companies in nearly 200 countries. The Hyundai Motor
Company is but one which the Group is active in such as shipbuilding, steel, petrochemicals,
heavy machinery, aerospace, electronics and financial services.

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 30 variants of passenger cars across segments.

HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL has set up its second
plant, which produces an additional 300,000 units per annum, raising HMIL's total production
capacity to 600,000 units per year.

HMIL has invested to expand capacity in line with its positioning as HMC`s global export hub
for compact cars. Apart from the expansion of production capacity, HMIL currently has 271
strong dealer network across India, which will be further bolstered in 2009.
PRODUCTS OF HYUNDAI COMPANY

Tucson:

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Veracruz:

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Hyundai Verna

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Sonata:

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Getz

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i30:

i10:

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Elantra:

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METHODOLOGY

We collected information from both primary & secondary data. I visited various dealer’s
showroom HYUNDAI and asked their respective relationship managers about the company’s
offerings, to get detailed knowledge of CRM applications & practice in real business scenario.

Findings & Analysis:

BUSINESS STRATEGY & CRM

Three key phases:

• Customer Acquisition.
• Customer Retention.

• Customer Extension.

Three contextual factors:

• Marketing Orientation.

• Value Creation.

• Innovative IT.

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Customer Acquisition

This is the process of attracting our customer for 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 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

- Centres 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 behaviour seen in other individuals (e.g.
When Amazon tells you that customer that viewed/bought the same product as you, also bought
another product).

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 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 .

Hyundai Motors has taken a phased approach to the implementation, with the goal of achieving
success in each phase before moving forward.

Phase 1, currently under way, focuses on capturing customer and vehicle data and automating
routine tasks.

Phase 2 will focus on leveraging data to improve customer interactions and streamline product
development and planning.

Phase 3 will focus on tuning the system and delivering additional value-added services to
customers. To address its competitive challenges, Hyundai Motors began standardizing its
customer-facing business processes companywide, laying the foundation for stronger dealer
relationships, improved operational efficiency and effectiveness, and 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.

CUSTOMER KNOWLEDGE

Customer knowledge refers to understanding your customers, their needs, wants and aims is
essential if a business is to align its processes, products and services to build real customer
relationships. Customer knowledge can be approached from two ends. Firstly, you could say that
customer Knowledge is the "collection of information and viewpoints that an organization has
about its customers". Using this definition, the role of customer knowledge management is to
capture and organize this data to allow it to be shared and discussed throughout the
organizational alternative definitive of customer knowledge is that it is the "collection of
information and insight that you need to have to build stronger customer relationships". From
this point of view what you currently know about your customers may not be sufficient. You
may need to put in processes and systems to gather more information and data about who your
customers are, what they do and how they think.

CUSTOMIZATION:

Customization bonds approach suggest that customer loyalty can be encouraged through intimate
knowledge of the individual customers and through the development of one-to one solutions that
fit the individual customer’s needs. HYUNDAI MOTORS believes in 'Customer is THE KING',
and also knows well how to make them feel One. They have an extensive follow up programme
and prompt service. This helps them to change their strategies and customize their services to fit
developing customer needs. For this purpose, they always request the customers to fill in their
feedback form that follows the service/repair visit. If a low score is received on their feedback
form, they would go out of the way to apologize for the error. Simultaneously, they provide
technicians who visit their home place in order to attend the issues and rectify them to their
satisfaction level. Follow up calls are made to ensure that how efficiently their problems were
resolved.

RELATIONSHIP POLICY:

The customer is tied to the company primarily through financial incentives – lower prices for
greater volume purchases or lower prices for customers who have been with a firm a long time.

• As we know, the acquisition cost is not the only cost one faces when buying a car. it may not
necessarily be affordable to maintain, as some of its regularly used spare parts may be priced
quite steeply. Hyundai Motors provides very good after sale services to its customers. It is in the
economy segment that the affordability of spares is most competitive as compared to others.

• It also provides its long term customers either with stable prices or lower price increases as
compared to the new customers.

• HYUNDAI motors provides financial incentives and rewards to the customers who bring more
business to their service station by recommending and spreading good word of mouth to others
about their services.

• HYUNDAI Motors provides free of cost servicing to customers having Tata cars within a two-
year warranty time period. HYUNDAImotors also offers an extended paidwarranty program mar
keted under the brand, “Forever Yours” for the third and fourth year after purchase. The extende
d warranty program helps in strengthening contact with the customer and also increase the reven
ue generated from sale of spares, accessories and automobilerelated services.

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.

Hyundai Motors implemented Oracle's Siebel Automotive, a comprehensive customer

relationship management (CRM) solution designed specifically for companies in the automotive
industry. Seamlessly integrated with Hyundai Motors’ dealer management system and SAP
back-office applications, Siebel Automotive has delivered significant benefits across the
extended organization, including improved customer satisfaction, increased revenue and
productivity, and reduced costs. By tightly integrating Siebel Automotive and its dealer
management system, Hyundai 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, HYUNDAI
Motors involved dealers throughout the solution configuration and deployment process.
“Integrating Siebel Automotive with our dealer management system ensured that our dealers
would immediately see the value in the solution,” Sreenivasan explains. “This has helped us
overcome the usual resistance to change and gain rapid acceptance from our dealers.” Siebel
Automotive has been closely integrated with a wide array of SAP back-office applications,
including applications inventory management, fulfilment, and parts location. Pricing and tax
calculations can be adjusted for each dealer’s requirements. In addition, comprehensive sales and
reporting functionality built into Siebel Automotive enables HYUNDAI to distribute sales
targets to its dealers and roll up sales numbers across the country.

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HYUNDAI Motors also liked the fact that Siebel Automotive provides multi-organization
support, can be deployed easily over the Internet, and provides robust partner management
capabilities—ideal for Hyundai Motors with its far-flung dealer network. Further, the user-
friendly interface has simplified the process of training Tata Motors’ 10,000-plus dealer sales
force. Covering a country with an area of 3.3 million square kilometres (or about one-third the
size of the U.S.) also required an innovative communications solution. Hyundai 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 already begun to deliver
benefits for Hyundai Motors’ dealers throughout India. “Overall, Siebel Automotive has
transformed our organization and made it truly customer-centric,” says Sreenivasan. “We’ve
overcome the challenges of relying on disparate sources of information, as well as having
inconsistent business processes. Today, our employees and dealers are much more responsive
and can serve customers more efficiently and effectively—drawing upon real-time, centralized
customer and vehicle data. “One of our first dealers to install Siebel Automotive said that his
sales volume doubled in three months without the need for additional manpower,” he continues.
“Another dealer said that for the first time he was able to view his entire stock of vehicles and
how his inventory was aging, improving his 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 Hyundai Motors. “Within the first year of implementing the solution, we
are targeting improvements of 5 to 10% in customer satisfaction, revenue growth, operating cost
reduction, and productivity gains,” says Sreenivasan. “These numbers should increase
considerably over time.” He concludes, “Siebel has been very committed to helping us in all
aspects of the project. Combining Siebel Automotive with our dealer management system is
unique, so we have needed quality support. Siebel has played a major role in getting us to where
we are today.

Recommendations

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 of effort consistent with the cost of acquisition and profit potential. Their unrefined use of
resources not only leads to wasted investment but can cause annoyance among customers who
are either being oversupplied or undersupplied with attention.

• Companies keep the name of financing company as the owner of the vehicle and in many cases
does not have the record of effective owner of vehicle who was responsible for the purchase
decision.

• In CRM Indian Automobile industry has to learn much from other service industries such as
airline industry. Each time a customer approaches a service agent, his entire history was flashed
on screen.

• Customer knowledge can be used to give customer specific offer on purchase of second vehicle
in family.

• Services such as pick and drop, on-road service, should be provided at HYUNDAI service
station, which are common in other companies.

CONCLUSION

Hyundai Motors has proven excellence over the years through its technologically advanced
products, market expansion, customer satisfaction and increasing sales. Hyundai Motors
consistently strives to increase shareholder value, build stronger customer relations and work
with its business partners to provide the best value for money. The company is also involved in
accelerating the country’s economic growth and protecting the environment. With the initial
financial backing of the giant parent company, Hyundai Group, the division has built a strong
business over the past 60 years and continues to show strong financial results. The continual
improvement and introduction of new products in the market have allowed it to successfully
enter as well as dominate the automobile industry in India. With increasing sales, employees,
product offerings, manufacturing facilities and distribution centres along with expansion in India,
the company seems to have a promising future.

PRACTICALEXPOSURE TO SALESFORCECRM:

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LEAD NAME

LEAD OWNER

CONTACT NAME