EXECUTIVE SUMMARY

A study on customer satisfaction level towards the product and service provided by RAM HYUNDAI PVT LTD,CHENNAI. The need for this study emerged to find out the reason for the sales which was gradually falling from the start of 2011. The idea of the case study is to learn whether the customers were treated well,whether customers problem are solved with utmost care and how relationship is been maintained between the dealer and their Customers. A market survey was conducted among 100 customers of RAM Hyundai at Chennai.The data were collected from varied categories of respondents.It was found that most of the customers are giving more importance to different characteristics of the product and service while purchasing and high expectation and rating for essential service from RAM Hyundai. RAM Hyundai should make necessary changes in services offered according to the customer expectation and satisfaction in order to retain the existing customers for servicing and to generate new customers for years. Employees of RAM Hyundai should be trained in customer service so that they can provide professionalized service to the customers.

INTRODUCTION

As organizations become increasingly customer focused and driven by demand, the need to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most effective way to achieve customer loyalty. Customer satisfaction and customer loyalty share many similar traits. Customer value is the customers perception of the ratio of benefits to what he or she gives to obtain those benefits. Increasing competition, ever growing market, easy availability of the finances and increasing population of young executives, with huge disposable incomes over the past few years has substantially increased the sales in the automobile industry. Also, the competition among the dealers of the products has increased with each trying to maximize their customer base. This makes the dealers to provide the best of the services and exceed the customer expectations to achieve customer delight and loyalty. The study tries to understand the key service parameters and providing the dealer with an insight into the level of customer satisfaction and changing trends of the customer expectations.

BACKGROUND OF THE COMPANY

Hyundai a name to be reckoned in the World Automobile industry is Koreas number one automaker. Hyundai has established an enviable record for growth both in quantitative and qualitative terms transforming itself from a domestically oriented manufacture into a global player and leading contributor to Koreas economic and industrial development. Hyundai Motor Company is steadily accelerating to achieve the status of world-class automobile company. In December 1967, Hyundai Motor Company (HMC) was born out of the Hyundai Business group, the nations largest conglomerate with the purpose of entering the automobile industry
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to meet the growing domestic demand for cars. Since then, HMC has played a major role in providing transportation to further Koreas economics growth and prosperity.

Entry of Hyundai Motor Company in the Indian Market

Hyundai established its presence in India by opening a subsidiary called Hyundai Motor India Limited with a total investment of US$ 614 Millions. The Hyundai project is the largest to be made by an MNC in the automobile sector. The plant near Chennai, in the state of Tamil Nadu is the largest manufacturing plant of Hyundai motors outside Korea and contains nearly all facilities necessary for a self sufficient manufacturing and production site for developing cars. As such, the India plant represents a family-type combined automobile assembly facility, capable of all production processes, research and development, testing of products, marketing for sales and provision of after sale service in India.

Ideology and Environment at Hyundai:

A management motto at Hyundai is Customer first, best in technology, best in quality and best value for human beings. Hyundai as a company is dedicated to create new value for its customers. Hyundai Motor Companys target is to care for the environment and devote attention to the future of our children and their ability to inhabit a clean, pollution managed world. Goal of Hyundai To build the worlds best quality cars

Mission:
We at RAM Hyundai are continuously striving to be in tune with technology, provide
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products and services of the highest quality, meet the performance and price aspirations of our customers and while doing so, maintain the highest standard of ethics and social responsibilities. Constantly look to improve the quality of our services and process and look for constant development with a focus towards customer delight.

Product profile of RAM Hyundai:

1. Santro 2. Accent 3. i10 4. i20 5. Verna 6. Sonata 7. Sante Fe

Sales:

Overall 1500 Vehicles sold out last year and at an average of 130 to 140 Vehicles

sold out monthly.

Competitors:

The number of competition dealer in Chennai for Hyundai motors are

1. Hmp Hyundai 2. Kun Hyundai 3. Dsc Hyundai

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4. Express Hyundai

Key issues of the Organization:

Sales of Hyundai cars are gradually falling from the start of 2011.The dealer wanted to know whether customer satisfication is the reason for the same.The study was taken up to find out customer satisfication with respect to service offered by RAM Hyundai.

ANALYZING THE COMPETITIVE ENVIRONMENT

General environment:
PESTEL analysis of Automobile Industry: Political Factors:
In 2002, the Indian Government formulated an auto policy that aimed at promoting integrated, phased, enduring and self-sustained growth of the Indian automobile industry.Formulation of an appropriate auto fuel policy to ensure availability of adequate amount of appropriate fuel to meet emission norms. And allowing automatic approval for foreign equity investment up to 100% with no minimum investment criteria.Plan to have a terminal life policy for Commercial vehicles along with incentives for replacement for such vehicles. Promoting multi-model transportation and the implementation of mass rapid transport system.

Economic Factors:
Government has granted concessions,such as reducing interest rates for export financing .Indias GDP is growing at average rate of 8.5% every year and is counted as
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one of the best among the emerging economies.The manufacturing sector of Automobile has grown in excess of 13 per cent over the last few years and Finance availability to Commercial vehicle buyers has grown in scope during last few years.Establishment of India as manufacturing hub, for many compact cars, Original Equipments Manufactures and for auto components and several Indian firms have partnered with global players.

Social Factors:
The average family size is 4 which makes it favourable to buy a 4 wheeler.Car priced below 6 lakhs accounts for nearly 80% of the market and Vehicles priced between 3.5 lakhs-6 lakhs for the largest passenger segment in the car market.Preference for small and compact cars are socially acceptable even among the urban people.Due to changed lifestyle of people, leads to increased purchase of automobiles, so automobile sector have a large customer base to serve.

Technological Factors:
The Government of India is promoting National Automotive Testing and R&D infrastructure project (NATRIP) to support the growth of auto industry in India.Technological solutions helps in integrating the supply chain, hence reduce losses and increase profitability.Internet makes it easy to collect and analyse customer feedback.With the entry of global companies into the Indian market, advanced technologies,both in product and production process have developed. And major global players like Audi, BMW, Hyundai etc have setup their manufacturing units in India.
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Environmental Factors:
In India,the pollution control norms applicable to the automobile sector have been aligned with International trends.Euro II norms for emission levels have been implemented all over the country.Judiciary in India has been active in enforcing anti-pollution norms.Meeting the emission norms has been made mandatory for all the new vehicles introduced in India and the auto industry has adjusted to environmental concerns.

Legal Factors:
The legal system of India is mainly characterised by liberalised foreign investment and trade policy.There is a legal provision relating to environmental pollution by automobiles and legal provision relating to safety measures for using a product and services that are hazardous to life and property.

Business environment:
Porters five forces model of Hyundai motors:
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THREAT OF NEW ENTRANTS

New entrants in Automobile sectors from China and Japan. New Luxury models from other Automobile Manufacturers.
BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS

RIVALRY AMONG THE COMPETITORS

OEM of Hyundai cars are supplied by suppliers companies may bargain for a high price. Bargaining power of suppliers is low and the manufacturer may shift to some other suppliers.

Huge price competition leading to extensive need to differentiate their brands. Rivalry among introducing the new and best technology.

Bargaining power of buyers is high. Buyer may shift to some other manufacturer if he is not satisfied with the price.

THREAT OF SUBSTITUTES

Public Transportation with more comfort and frequency. Motorcycles.

Organizational structure:
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Chief Executive Officer DIRECTOR

CHIEF EXECUTIVE OFFICER

MANAGING

SENIOR SALES MANAGER

DEPUTY SALES MANAGER

ASST.SALES MANAGER

4 -TEAM LEADERS 4hjgfhj

20- SALES TTTT20-SALES EXECUTIVES EXECUTIVES

SWOT Analysis of RAM Hyundai:

STRENGTH: Marketing expertise in Two wheeler retail segments at Chennai Showroom is situated in prime location of Chennai where target group customers like business people,IT people etc are more.

WEAKNESS: Lack of sufficient knowledgable sales person.

Lack of awareness due to less promotional activities.

Low customer retention.

OPPORTUNITES:

THREATS:

Expanding geographic Chennai.

to areas

new Changing customer tastes. in Competition through other Hyundai dealers in Chennai.

Sell to existing corporate customers in and around..

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Testing of Hypothesis:
A market survey with a validated tool was conducted among 100 customers of RAM Hyundai at Chennai.After applying descriptive statistics it was inferred that,
1) From Exhibit -2, it is evident that the Characteristics which are important for

purchasing the product/service is higher than other factors.

2) From Exhibit -1, it is evident that the respondents are highly satisfied with the

Characteristics of product/service.
3) From Exhibit-3, it is evident that the rating of essential services of Hyundai is

high.
4) From Exhibit-4, it is evident that the respondents are not fully satisfied about

their recent experience with the product/service.

5) From Exhibit-5, it is evident that the respondents are not fully satisfied about

their overall satisfication with the product/service.

Alternative Strategies:
1) RAM Hyundai should involve more promotional activities by providing special

offers.
2) RAM Hyundai should concentrate on online customer care service to provide

proper services on time.

Recommendation:
1) Employees of RAM Hyundai should be trained more in order to provide professionalized service to the customers which increases competitiveness of RAM Hyundai. 2) RAM Hyundai should concentrate on middle class people in order to increase its sales to provide service at a competitive price.

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BIBLIOGRAPHY

Philip Kotler,Marketing Management,Pearson 13th Edition;

Page no:78

Donald R.Cooper,Business Research Methods,TataMc Graw Hill 2003 Edition ; Page no:55

www.blackwellpublishing.com www.ibef.org www.hyundai.com/in

www.mangaementparadise.com

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APPENDICES: I.How satisfied are you with the following characteristics of our product/service?

EXHIBIT NO:1
Variables Quality of the product/services Price of the product/services Purchase experience First purchase experience Usage experience Fuel consumption Looks and Design After purchase service Customer service representative are friendly Technical staff are friendly Problem solving skills of technical staff Total Mean 4.56 4.44 4.10 4.28 4.38 4.53 4.71 3.33 3.70 3.40 3.56 4.09 Median 5.00 4.00 4.00 4.00 4.50 5.00 5.00 4.00 4.00 4.00 4.00 Skewness -1.219 -.414 -.075 -.420 -.672 -.994 -1.587 -.242 -.362 -.153 -.293

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II .How important are the following characteristics when purchasing this type of product/service?

EXHIBIT NO:2

Variables Quality Price First use experience Usage experience Fuel consumption Maintenance Looks and Design After purchase service Repeat sevice experience Purchase experience Total

Mean 4.64 4.52 4.31 4.31 4.52 4.68 4.61 4.32 4.21 4.20 4.43

Median 5.00 5.00 4.00 4.00 5.00 5.00 5.00 4.00 4.00 4.00

Skewness -.592 -.610 -.471 -.354 -.891 -1.044 -1.012 -.383 -.316 -.798

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III .How would you rate Hyundai on following parameters?

EXHIBIT NO:3
Variables Knowledgeable sales person Sales person spend enough time before purchase Sales person spend enough time after purchase Display of merchandize is pleasing Availability of variants Attractive discounts Decor of the waiting area is pleasant Offered Test Drive Responds to complaints quickly Exellent service station facilities Total Mean 2.91 3.79 3.12 3.43 4.16 3.57 3.36 4.32 3.42 3.30 3.53 Median 3.00 4.00 3.00 3.50 4.00 4.00 3.00 4.00 4.00 3.00 Skewness .179 -.411 .533 -.112 -.685 -.457 -.015 -1.016 -.278 .193

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IV. Thinking of your most recent experience with our product/service, how much do you agree with the following statements?

EXHIBIT NO:4
Variables Value for money All commitments are fulfilled Product/service offered are those what I need Product/services is easy to use Product/services is competitively priced Total

Mean 4.41 3.85 3.43 4.12 3.73 3.90

Median 5.00 4.00 4.00 4.00 4.00

Skewness -1.128 -.485 -.124 -.929 -.458

V. Overall, how satisfied were you with our product/service?

EXHIBIT NO:5
Variables Overall satisfication with Our product/services Mean 3.70 Median 4.00 Skewness -.558

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VI. Thinking of similar products/services offered by other companies, how would you compare our product/service offered to them?

EXHIBIT NO:6
Variables Compare Our product/services with other companies Mean 4.12 Median 4.00 Skewness -.200

VII. Would you recommend our product/service to colleagues or contacts within your industry?

EXHIBIT NO:7
Variables Recommend Our Product/services to others Mean 3.17 Median 3.00 Skewness -.299

QUESTIONNAIRE ON CUSTOMER SATISFACTION SURVEY HYUNDAI MOTORS

Dear Sir/ Madam, I am S.VIGNESH , a MBA student of ..University. I have taken up a project work in your esteem organization as a part of MBA curriculum. The topic on which I am working is CUSTOMER SATISFACTION SURVEY HYUNDAI MOTORS , Chennai.

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Please take a few minutes to complete this survey. Your specific answers will be completely anonymous, but your views, in combination with those of others, are extremely important for analysis. The information is exclusively for academic purpose which will help me to understand What are stress factor in an organization & how the employees are managing?

Thank You.

I.

How satisfied are you with the following characteristics of our product/service? 3Neither 5 - Very 421 - Very satisfied satisfie Somewha Somewhat dissatisfie nor d t satisfied dissatisfied d dissatisfie d

Quality of the product / services Price of the product / services Purchase experience First use experience Usage experience Fuel Consumption Looks and Design After purchase service (customer service, etc.) Customer service representative are friendly Technical staff are friendly

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Problem solving skills of technical staff

II.

How important are the following characteristics when purchasing this type of product/service? 5Extremely important 32 - Not very 1 - Not at all Somewhat important important important

4 - Very important

Quality Price Purchase experience First use experience Usage experience Fuel Consumption Maintenance Looks and Design After purchase service (customer service, etc.) Repeat service experience

III.

How would you rate Hyundai on following parameters? 19

5 Strongly agree Knowledgeable sales person Sales person spend enough time before purchase Sales person spend enough time after purchase Display of merchandize is pleasing Availability of variants Attractive discounts Dcor of the waiting area is pleasant Offered test drives Responds to complaints quickly Excellent service station facilities

3 - Neither 24 - Agree agree nor Disagree disagree

1 Strongly Disagree

IV. Thinking of your most recent experience with our product/service, how much do you agree with the following statements?

43 - Neither 25 - Strongly 1 - Strongly Somewhat agree nor Somewhat agree disagree agree disagree disagree Value for money

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All commitments are fulfilled Product/service offered are those what I need Product/service is easy to use Product/service is competitively priced

V. Overall, how satisfied were you with our product/service?

5. very satisfied

3.Neither 4.Somewhat satisfied nor satisfied dissatisfied

2.Somewhat 1.Very dissatisfied dissatisfied

VI. Thinking of similar products/services offered by other companies, how would you compare our product/service offered to them?

6.Much 5.Somewha 4.About 3.Somewha 2.Much 1.Dont better t better the same t worse worse know

VII. Would you recommend our product/service to colleagues or contacts within your industry? 21

5.Definit ely bly

4.Proba

3.Not sure

2.Probably not not

1.Definitely

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