EXECUTIVE SUMMARY

Automobiles have become an indispensable part of our lives, an extension of The human body
that provides us faster, cheaper and more convenient mobility every passing day. Behind this
betterment go the efforts of those in the industry, in the form of improvement through
technological research. The Indian automotive component industry is dominated by around 500
players which account for more than 85% of the production. Hyundai Motor Co. was established
as an independent Company in 1937.This project on Hyundai tells us about the satisfaction level
of consumers with The Hyundai. Firstly Introduction about The Automobile Industry has been
explained in this project. As a joint venture between Group and Hyundai Motor Corporation,
Hyundai Motor Limited (TKM) aims to play a major role in The development of The
automotive industry and The creation of employment opportunities, not only through its dealer
network, but also through ancillary industries. Hyundai Motor Limited firmly believes that The
success of this venture depends on providing high quality products and services to all valued
customers through The efforts of its team members. Hyundai Motor Limited, along with its
dedicated dealers and suppliers, has adopted The "Growing Together" philosophy of its parent
Company TMC to create long-term business growth. In this way, Hyundai Motor Limited aims
to further contribute to progress in The Indian automotive industry, realize greater employment
opportunities for local citizens, improve The quality of life of The team members and promote
robust economic activity in India. The next phase looks upon The research carried out for
analyzing The response towards Hyundai. This has been done by conducting a survey.

After conducting the survey it was observed that most of The Hyundai owners were satisfied
with their services and its maintenance. The designing and interiors are most liked by The
customers but few people also want it to be more affordable.

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 NEED FOR STUDY

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 it imperative for 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 reflect upon the dysfunctional areas,
thus providing the dealer with an insight into the level of customer satisfaction and changing
trends of the customer expectations.

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 OBJECTIVE OF THE STUDY

To study and understand the key service parameters using Customer Satisfaction and reflect upon
the low performing areas:

 To study about the customer satisfaction on the services provided by the dealers.
 To study the opinion of the customers regarding the availability and cost of spare parts.
 To study the opinion of the owners of cars regarding its features like mileage, price etc.
 To study the effect of advertisement on the customers to promote the product.
 To study the customer satisfaction with usage of their cars.
 To study the information resources that the customer using before purchasing the car.

SCOPE OF THE PROJECT

 The research measures the experiences of customers.

 Defines and analyses the experiences based on key deliverables.

 Gains insights into Customer expectations.

Limitations:

The study is restricted in scope of owing to the following limitations:

 Due to constraint of time only city of Hyderabad is selected and so it cannot claim to be a
comprehensive study of the population.
 The sample size is restricted to 100 respondents.

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 RESEARCH METHODOLOGY

Preliminary stage of study- a pilot survey, personal interview of sales consultants, potential
customers and existing customer numbering 20 was conducted to arrive at key deliverables
which would ensure customer satisfaction. The research tool (questionnaire) was designed by
inducing the various queries, based on the key deliverables, which would reflect the customer
satisfaction.

The research was based on a study of a sample, sized 100, using simple random sample selected
from the existing database of Krishna Hyundai. The research included collection of data from the
primary sources using the research tool (questionnaire). Final stage was to analyze, interpret and
draw conclusions from the data collected

Date Sources:
Primary Data:
The data is collected directly from each and every customer.

Pilot Survey

A pilot survey was conducted to understand the factors, which would positively influence
the customer. Personal Interviews totaling 20 were conducted for the sales team, potential
customers and the existing customers of Krishna Hyundai. The factors scoring high in the
interviews were considered to be the key deliverables.

Survey Research:
The research was done to learn about people’s preferences and satisfaction of the Krishna
Hyundai customer.

Research Tool:

Questionnaire (primary tool- attachment 1)

Interview through questionnaire method was employed for the research purpose. The
questionnaires were individually administered to each customer to ensure minimum scope for
faulty data entry and error of understanding. This method also gave the interviewer the scope of
entering into a dialogue and understanding the customer’s perception better.

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The questionnaire tried to capture the responses of the customers mainly on the key deliverables,
derived from the pilot survey conducted, and a few questions have been included to gauge the
level of satisfaction and to gain insight into customer expectations.

Unstructured interview
The interview complemented the primary research tool and helped delver into details of
responses provided by the customers. This not only validated the responses of the customers but
also helped the interviewer understand the expectations of the customers.

Sampling Unit: In this study the sampling unit used is the existing customer base of Krishna
Hyundai. Selection is made from the list of Customers during the last one year.

Sampling Size: Sample size was chosen to be 100.

Sampling Procedure: Simple Random Sampling.

In simple random sampling, each member of the target population has the same
chance of being selected for participation in the study. For a sample to truly be a simple random
sample we need to develop a list or sampling frame that includes almost all of the population,
then from this we randomly pull names from the sampling frame using some kind of random
method such as a random number table or a random number generator. Finally, numbers are
assigned to all members of the population and pull the names of those members whose numbers
are pulled from the table or generator.

The biggest advantage to a simple random sample is that we get a pretty good unbiased sample
fairly easily. The biggest downside is that we may not get all elements of the population that are
of interest.

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 INTRODUCTION
Automobile Industry History
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first
automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military
tractor that made the use of a steam engine. The range of the automobile, however, was very
brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these
automobiles were not fit for the roads as the steam engines made them very heavy and large, and
required ample starting time. Oliver Evans was the first to design a steam engine driven
automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and
1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst
the first to invent more applicable automobiles, making use of non-rechargeable electric batteries
in 1842. Development of roads made travelling comfortable and as a result, the short ranged,
electric battery driven automobiles were no more the best option for travelling over longer
distances.
The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of
cars. This lead to the development of the industry and it first begun in the assembly lines of his
car factory. The several methods adopted by Ford, made the new invention (that is, the car)
popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the automobile markets around the
globe with no notable competitors. However, after the end of the Second World War in 1945, the
Automobile Industry of other technologically advanced nations such as Japan and certain
European nations gained momentum and within a very short period, beginning in the early
1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially
those of Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the developed countries the
Automobile Industries are stagnating as a result of the drooping car markets, whereas the
Automobile Industry in the developing nations, such as, India and Brazil, have been consistently
registering higher growth rates every passing year for their flourishing domestic automobile
markets.

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Those who are interested in gathering more information about the Automobile Industry, may
browse through the following links

 World Automobile Industry

 Automobile Industry Trends

 India Automobile Market

 India Automobile Industry

The World Automobile Industry is turned to the developing markets.

With the developed markets almost saturated, the World Automobile Industry is now focused on
the developing markets of South America and Asia, and Eastern Europe with special emphasis on
BRIC (Brazil, Russia, India, and China).

As per the reports of the International Organization of Motor Vehicle Manufacturers or OICA(the
association of the companies involved in World Automobile Industry), for the fiscal end in 2006,
the automobile manufacturers in the U.S. have been overtaken by those in Japan, in terms of the
total volume of automobile units manufactured worldwide.

However, the struggling General Motors of the U.S. still remain the worldwide leaders of the
World Automobile Industry, ahead of the rapidly growing Toyota Motor Corporation of Japan, by
a substantial margin.

Measures to be adopted by global leaders of the World Automobile

Industry.
Several significant economic measures are being considered by the major players of the World
Automobile Industry in order to make a smooth entry into the markets of the developing
countries, and to make a name for themselves. The effective measures include :

 Reducing the selling prices of the automobiles manufactured in their factories

 Improving the levels of after-sales services to keep customers satisfied

 Opening manufacturing factories in the developing nations, to reduce effective costs of

production as well as saving shipping charges, and enhancing prompt delivery of
automobile units.

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Automobile Industry Trends

In keeping with the Automobile Industry Trends, the leading automobile manufacturers are
turning to the Asian markets that appear set to grow immensely over the next decade. The
automobile markets in the U.S., Europe and the Japan have almost matured as a result of
saturation and appear set to decline through the next decade. In contrast, the automobile markets
spread over the entire Asian continent (with the exception of Japan), are constantly increasing in
size and will be the destination for most of the globally leading automobile manufacturers.

The Automobile Industry Trends reveal that the emerging markets of the developing nations of
Asia especially China, and India are backed by their huge population growth rate, to add to the
growing national economy of these two nations.

The rapid growth of the national economy of the BRIC countries (including Brazil, Russia, India,
and China) has enabled a growing section of the population of these countries to purchase
automobiles. Global surveys conducted recently reveal that within the next ten years, these
emerging automobile markets will account for nearly a whooping 90 percent of the global
automobile sales growth. As a result of this, leading Automobile manufacturers of the world are
setting up factories in the emerging markets, in order to serve the potential consumers better as
well as reduce manufacturing and shipping costs. In addition, these arrangements are enabling
the leading global automobile manufacturers to compete with the local automobile
manufacturers, that were flourishing in the absence of quality competition.
The prosperity of the national economy is reflected in the rising per capita income of the
developing nations. Therefore, increasing Gross Domestic Product and per capita income have
raised the purchasing ability of the population that constitutes these emerging markets
As a growing percentage of the population in the developed nations age rapidly, in comparison
to the rest of the world, these aging numbers necessitate automobiles to fit the physiological
change of the world population.

The Emerging India Automobile Market.

The India Automobile Market is a promising industrial sector that is growing immensely every
passing year. The passenger cars are referred to, through the use of the word "automobile." The
whooping growth experienced by the Indian Automobile Market in the last financial year itself,
that is the financial year end in February, 2007, was very close to a 18 percent over the previous

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fiscal. This statistical fact is a glittering example of the potential of the growing Automobile
Industry in India.

As per the survey conducted by the Society of Indian Automobile Manufacturers, the total
number of automobiles manufactured by the Automobile Industry in India, throughout the
financial year 2006-07, was very close to the 15.5 lakh (1.5 million) margin. The huge of number
of automobiles manufactured by the Automobile Industry in India was an enormous growth upon
the number of automobiles manufactured during the previous fiscal, that ended in 2006.

The total number of cars that were exported from India were very close to the 2.0 lakh (2.0
hundred thousand) margin, an encouraging sign for the Automobile Industry in India. The export
of cars manufactured in India comprised nearly 13 percent of the total number of cars
manufactured domestically by the Automobile Industry in India.

The India Automobile Market looks set to prosper, largely due to the growing market for
automobiles that is developing in India. In the financial year that ended in February, 2004, the
Indian automobile markets were the fastest growing in the world, with the registered growth rate
touching nearly 20 percent.

The Automobile Industry in India mainly comprises of the small car section, which enjoys nearly
a 2/3rd market share of the entire market for automobiles in India. In this respect, the Indian
markets are the largest in the world for small cars, behind Japan.

The Indian passenger car market which ranks amongst the largest in the world, is poised to
become even more larger and enter the top five passenger car markets in the world in the next
decade.

India Automobile Industry

Following India's growing openness, the arrival of new and existing models, easy availability of
finance at relatively low rate of interest and price discounts offered by the dealers and
manufacturers all have stirred the demand for vehicles and a strong growth of the Indian
automobile industry.

The data obtained from ministry of commerce and industry, shows high growth obtained since
2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual
growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent
The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent
between 1992 and 1997.

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With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded
Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive
industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded
Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

Automobile Dealers Network in India

In terms of Car dealer networks and authorized service stations, Maruti leads the pack with
Dealer networks and workshops across the country. The other leading automobile manufactures
are also trying to cope up and are opening their service stations and dealer workshops in all the
metros and major cities of the country. Dealers offer varying kind of discount of finances who in
tern pass it on to the customers in the form of reduced interest rates.

Major Manufacturers in Automobile Industry

 Maruti Udyog Ltd.

 General Motors India

 Ford India Ltd.

 Eicher Motors

 Bajaj Auto

 Daewoo Motors India

 Hero Motors

 Hindustan Motors

 Hyundai Motor India Ltd.

 Royal Enfield Motors

 Telco

 TVS Motors

 DC Designs

 Swaraj Mazda Ltd

Government has liberalized the norms for foreign investment and import of technology and
that appears to have benefited the automobile sector. The production of total vehicles

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increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production
of such vehicles will exceed 10 million in the next couple of years.

The industry has adopted the global standards and this was manifested in the increasing exports
of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered
robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-
half times the export figure for 2001-02.

Automobile Export Numbers

Category 2004-05 2009-10 (Apr-Dec)
Passenger Car 25468 121478
Multi Utility Vehicles 2654 3892
Commercial Vehicles 10108 19931
Two Wheelers 100002 256765
Three Wheelers 21138 51535
Percentage Growth -16.6 32.8

THE KEY FACTORS BEHIND THIS UPSWING

Sales incentives, introduction of new models as well as variants coupled with easy availability of
low cost finance with comfortable repayment options continued to drive demand and sales of
automobiles during the first two quarters of the current year. The risk of an increase in the
interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of
inputs such as steel are the key concerns for the players in the industry.
As the players continue to introduce new models and variants, the competition may intensify
further. The ability of the players to contain costs and focus on exports will be critical for the
performance of their respective companies.
The auto component sector has also posted significant growth of 20 per cent in 2003-04, to
achieve a sales turnover of Rs.30,640 crore (US$ 6.7 billion). Further, there is a potential for
higher growth due to outsourcing activities by global automobiles giants. Today, this sector has
emerged as another sunrise sector.
EVEN GROWTH
Opposing the belief that the growth in mobile industry has catered only to the top income-
stratum of society, Growth of exports of 32.8 % in the first three quarters of 2009-10 the fastest
growth in volumes has come from commercial vehicles as against passenger cars.

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Between 2004 and 2005, the output of commercial vehicles has grown 2.8 times compared to the
2.2 times increase in passenger cars. Furthermore, two-wheeler output continues to dominate the
volume statistics of the sector. In 2003-04, for every passenger car turned out by the sector, there
were 7 two-wheelers produced. In the two wheeler segment, there is a greater preference for
motorcycles followed by scooters, with both production and domestic sales of motorcycles
increasing at faster rates than for scooters in the current and previous years. However, mopeds
have registered low or negative growth. Export growth rates have been high both for motorcycles
and scooters.

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HYUNDAI CAR MODELS

Santro

Accent

I10

13
 GETZ

VERNA

SONATA

TUCSON

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 i20

ELANTRA

15
 REVIEW OF LITERATURE
CUSTOMER SATISFACTION
Concept Identification-

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 customer’s perception of the ratio of benefits to what he or she gives
to obtain those benefits. The customer Value Triad is a framework used to understand what it is
that customers want. The framework consists of three parts: (1) perceived product quality, (2)
value-based pricing, and (3) perceived service quality.

Customers are satisfied, when value meets or exceeds expectations. If their expectations of value
are not met, there is no chance of satisfying them. Figuring out what the customers want,
however, is a difficult and complex process. To be able to create and deliver customer value is
important to understand its components. On the most basic level, value from a customer’s
perspective is the ratio of benefits to the risks being taken while buying the product.

CUSTOMER SATISFACTION

AN INSIGHT
According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print more
frequently than any other catch phrase used to describe a new found magic for industrial
success. Before we proceed in to the study of the dynamics of Customer Satisfaction it is
important to know about, who a customer is and what satisfaction really means.

Who really is a Customer?

The question of defining who your customers are seems fairly easy particularly if you have
segmented your market properly and understand who you are trying to satisfy. However subtlety
that frequently goes undetected by many firms is that is that customer set can be divided into two
parts, the apparent customer and the user. The apparent customer is the person or group of people
who decide what product to buy and basically have control over the purse strings. The user is a
person or group who physically uses the product or is the direct recipient of a service.

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What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple. However as with
customer there is a subtlety that needs addressing. Satisfaction by most definitions simply means
meeting the customer’s requirement.

Customer satisfaction is a concept that more and more companies are putting at the heart of their
strategy, but for this to be successful they’re needs to be clarity about, what customer satisfaction
means and what needs to happen to drive improvement. Without this, there is a risk that customer
satisfaction becomes little more than a good intention, with confused objectives failing to address
the real issues for customers, one helpful way to look at the problem is to rephrase the objectives:
set the sights on helping the customers meet their goals.

Customer satisfaction can be defined in many different ways. Finding the right way for a
company depends on understanding your customer and on having a clear vision of the role that
customer satisfaction is to play in the strategy. For example, a focus on customer satisfaction can
work alongside existing segmentations to support revenue generation from high value customers
or it can be a company-wide objective rooted in the brand values. For the former, it may be
sufficient to focus on improving customer service, but for the latter a broader definition of
customer satisfaction is necessary, closer akin to corporate reputation.

Whatever the strategy for customer satisfaction, it must at least include getting the basics
right. Failing to achieve this can destroy the reputation as well as losing valuable
customers. Every customer, regardless of their economic worth to the business, has the power to
influence – positively or negatively – a company’s reputation. Once the objectives for the
customer satisfaction strategy are defined there are a number of steps we can take to make sure
the focus on customer satisfaction is effective.

Building a company around Customer Satisfaction -

With the increase in customer’s demands and competition it has become a lot more important to
base the entire company on customer service. When doing this one must first realize that every
member of an organization plays an active role in customer service. This includes both external
customers and internal customers within a company.

Customer focused organizations focus both on customer satisfaction and profit. Achieving
customer satisfaction generates the profit. In these organizations top management has frequent
contacts with external customers. The top management uses consultative , participative, and
supportive management styles to get through to the customer. The staff focuses all of its attention

17
on satisfying the customer’s needs. However, the management’s job is to provide the staff with
support necessary to achieve these goals. The other department and staff in the organization that
do not have direct contact with the external customers deal exclusively with internal customer
satisfaction.

The Influence of the salesperson in Customer Satisfaction-

In an article titled, “The influence of salesperson selling behavior on customer satisfaction with
products,” Brent G.Goff and James S. Boles examine the effects of non-product related construct
on customer satisfaction with major retail purchases such as automobiles. The article states that
salesperson’s selling orientation- customer orientation (SOCO) will affect not only consumer
satisfaction with the salesperson and dealer, but also indirectly, satisfaction with the product or
manufacturer.

In the perspectives of both the retailer and the manufacturer, customer satisfaction represents an
important issue because it relates to several desirable outcomes. Customer satisfaction leads to
future purchases, and repeated purchases of the same product from the same source. In other
words, it helps a firm retain its present customers and build loyalty. By helping a buyer obtain
product information and providing guidelines about what should be expected during the buying
process and use of a product, a salesperson may influence customer expectations concerning the
product. Thereby this may reduce the likelihood of dissatisfaction (Grewal and Sharma, 1991). A
successful salesperson tailors to the needs of each individual customer. By being customer-
oriented, a salesperson is likely to identify with needs of the customer, enabling the salesperson
to match his or her presentation to those requirements of the customer.

Internal Marketing – how it affects Customer Satisfaction –

Successful companies make every effort to ensure satisfaction to their customer by focusing all
organizational efforts of the company on providing superior customer service. By doing this
these companies hope to retain their existing customers and attract new ones. Only angle of
customer satisfaction commonly overlooked is the internal aspect.

The internal customer or employee plays a vital role in achieving customer satisfaction and
loyalty. Some firm’s do not understand that the treatment of internal customers becomes the
external customers’ perception of the company. A firm’s employees or other departments within
the organization make up its internal customers. Their job performance affects the firm’s ability
to deliver superior product and customer service (Boone and Kurtz, 1999). When a firm’s
employees are happy at work, their overall attitude and performance towards the customer

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enhances tremendously. Internal marketing helps members or employees of an organization
understand and fulfill their roles in implementing its marketing strategy. Internal marketing not
only keeps employees happy, it also shows them how their actions affect the firm’s ability to
achieve customer satisfaction.

Customer Satisfaction as part of Service Profit Chain:

A Harvard Business Review article outlines the internal process required to drive growth and
increase profitability. The article describes the ways in which service quality contributes to
success, outlining the steps in the “Service-profit chain”:

Profitability / Growth
Customer Loyalty

Customer Satisfaction
Value
Employee Productivity
Employee Loyalty
Internal Quality

Leadership

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 COMPANY PROFILE
PROFILE OF HYUNDAI

“Hyundai” a name to be reckoned in the World Automobile industry is Korea’s 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 Korea’s 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 nation’s largest conglomerate with the purpose of entering the automobile industry to
meet the growing domestic demand for cars. Since then, HMC has played a major role in
providing transportation to further Korea’s 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. This assembly plant not only boasts it sown assembly facilities but also a R&D center, a
performance experimenting and testing center, and a driving testing ground. 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.

In 1997, Hyundai Motor India limited launched “Santro” the best small car at its worldwide
debut in New Delhi. Santro is basically a face lifted version of the “Atos”. Santro was introduced
in three different models having varying features. Santro was a runaway success in the India
market and became famous as the Tall Boy car. It topped the volumes year after year in its
segment.

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Products rolling out of Hyundai Motor India Ltd.

The products that come out of the Hyundai Motor’s desk are

1. Santro Zing
2. Accent
3. i20
4. Sonata
5. i10 (kappa 1.2)
6. Getz

Santro Zing is a small segment car, with four different versions, and is priced between 3.38
Lakhs to 4.32 Lakhs. The four versions are named.

1. Santro Zing XE
2. Santro Zing XT
3. Santro Zing XG
4. Santro Zing XS

Accent is medium-sized car coming in six different versions, and is priced between 5.63Lakhs to
7 Lakhs. The six versions are named.

1. Accent CRDI
2. Accent GVS
3. Accent GLX
4. Accent GLS
5. Accent GPX Tornado
6. Accent VIVA 5-door petrol.

I20 is medium size car coming in three different versions, and is priced between 4.79Lakhs to
5.81Lakhs. The Three versions named

1. Magna
2. Asta
3. Asta(O)

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Sonata is a luxury car priced between 14Lakhs to 18Lakhs.

I10 is a small car coming in the nine different versions, and is priced between 3.29Lakhs to
5.36Lakhs. The nine versions named

1. D-Lite (1.1)
2. Era (1.1)

3. Magna

4. Magna AT

5. Sportz

6. Sportz (AT)

7. Asta

8. Asta SR

9. Asta SR (AT)

Getz is medium car coming in the seven different versions, and is priced between 3.59Lakhs to
5.48Lakhs. The Seven versions named.

1. GLE 1.1
2. GVS 1.1

3. GVS 1.1 (175 Tyre + rear spoiler)

4. GVS 1.3

5. GLS 1.3

6. GLX 1.3

7. GVS CRDI 1.5

Ideology and Environment at Hyundai:

22
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 Company’s 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. Hyundai believes that they have achieved the current status as a world-class company by
faithfully enforcing seven management principles and creating an atmosphere where by each and
every member of the company is able to work for the benefit of common future. As a result,
Hyundai motor company is committed to its social responsibilities as it fulfills its mission with
dedication and strength of purpose.

Goal of Hyundai – “To build the world’s best quality cars”

Hyundai Motor Company

Type Public

Industry Automobile manufacturer

Founded 1967

Founder(s) Chung Ju-yung

Headquarters Seoul, South Korea

Area served Worldwide

Key people Chung Mong-koo, Chairman and CEO

Products Automobiles and commercial vehicles

Revenue ₩31.86 trillion (2009)

Net income ₩2.96 trillion (2009)

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 Employees 75,000 (as of March 31, 2009)

Parent Hyundai Kia Automotive Group

UNDERTAKING THE KEY DELIVERIES

Human interaction

Customer service is a task, other than proactive selling, that involves interactions with customers
in person, by telecommunications, or by mails. It is designed, programmed and communicated
with two goals in mind: operational efficiency and customer satisfaction.

A typical categorization of the services based on who performs the action within the services
cape can be

1. Self-service (customer only)- ATM, Movie Theater

2. Interpersonal services-banks, restaurants
3. Remote services (employee only) – telephone mail order desk.

The superiority of the product has to be complemented with a high quality of services, which
gives a competitive edge to the organization. A high standard of service is what sets apart one
organization from another, and ultimately attracts the customer to the doorsteps.

Services at the showroom fall in the second category where there is a high complexity of
interaction and hence it becomes necessary for the personnel to be adept in responding to the
customer cognitively, emotionally and psychologically.

The various aspects and characteristics of service provision, which have been taken into
consideration of a customer care team/ sales consultant are

1. Politeness
2. Courteousness

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3. Product knowledge
4. Process knowledge
5. Communication skills
6. Responsiveness and supportiveness.

25
Product information

Consumers obtain information about products and services from personal sources (friends and
experts) and from the non-personal sources (mass and selective media).

When purchasing goods, consumers employ both personal and non-personal sources since both
effectively convey information about search qualities.

This is especially true for high involvement products such as cars, two-wheelers, durables etc.

Mass media can convey information about search qualities but can convey a little about
experience qualities. Also, mass media cannot elaborate on the finer aspects and hence it
becomes imperative for a showroom to provide the complete information about the product,
pricing and the offers.

The showroom can provide information by adopting the below mentioned list

1. Broachers, leaflets and pricelists – easy reference and handy.

2. Sales consultant

3. Test drive – hands-on experience.

Broachers, leaflets and pricelist are the basic sales tools, which elaborately give the product
specifications, promotional offers and schemes at hand and the pricing of various models at
display.

Sales consultant has to be knowledgeable to understand the nuances of the specification and
should be able to convey the same to the prospective customers. The sales consultants handle the
various queries (technical and commercial) and clears the impending doubts of the inquisitive
customer.

Test drive – the last part in providing information to the customer and gives the customer a hands
– on experience of the product performance

Time and Promptness.

One of the factors, which has to match the eagerness and the enthusiasm of the customer is quick
and prompt delivery of the service.

After the customer has made a decision to go ahead with the purchase the next logical sequence
of steps would be a process the required documents, book the order, confirm the order, inform

26
the customer about the date of delivery and prepare the required documents for the delivery of
the vehicle.

Order booking-This is the process where the onus lies completely on the personnel dealing with
the customer. The customer has to be given the right information regarding the documents, time
taken to process the documents and close the deal.

It is also the responsibility of the various departments involved to provide a quick service to
ensure that the customer has a good and satisfying experience.

Delivery on date and time- once the product is delivered it can be assumed that a sale has been
done. The paper work to be carried out has to be done at a quick pace. This can be observed in
the responses of those 25% of customers who reported a slack in the delivery process. Deviation
from promised date and time can lead to a lot of inconvenience to the customers, thereby leading
to a bad experience.

Consistency

“Nothing is consistent by change.”

Consistency is a matter of experience. The expectation of service grows from every experience
the customer has during the sales process. For egg., the customer would expect the same
responsiveness from the sales person during the order processing as it was during the pre-sales,
any aberration would create a sense of insecurity and would thereby breach the bond of trust
established between them.

Inconsistency in service is caused by ever changing expectations of the customer. This poses a
challenge of maintaining the quality of service in every “encounter”. The expectations are not
just related to the profile of the customer but also to the occasion and moods, service firms find it
difficult to meet the expectations of the customers all the time without affecting the quality of
service.

Furthermore, the characteristic of perish ability makes the service non-storable. They exist while
they are being delivered / consumed. This poses the management, problem of managing the
match and capacity planning.

In the analysis we have chosen to analyze the consistency maintained in offering services
relating to the human interaction as well as the processing of the documents. This becomes
important in the light of these services being offered in pre-sales and post sales scenario, and

27
gauging the consistency levels at these two stages gives a fair idea of the consistency maintained
in the services offered.

Consistency in human interaction is observed in the pre-sales, order processing and post sale
stages.

Convenience

The objective of the customer care personnel is to provide convenient and comfortable service
and not to push the customer to make the purchase. While basic facilities are made available, the
customer care personnel have to make sure that customer doesn’t feel any inconvenience while
the sales process is on.

Convenience does not only refer to the physical comforts such as seating, availability of rest
rooms etc. but also to mental convenience a in helping out the customer to reach a decision,
providing relevant information to the customer for evaluating the various options, making sure
that it is one-stop shop (additional accessories being made available like stereo systems, reverse
gear buzzers etc.) explain the basic functionally of the product etc.

It is helpful to offer customers information in printed form; good signing is very important at
service delivery points and on self-service equipment. The customer care personnel have to make
the first move and approach the visitors instead of making the visitors ask for some
guidance. The visitors have to be communicated how to use and how not to use the facilities at
offer.

The concentration has been focused on checking the convenience of the customers on aspects
such as

1. Timings

2. Test drive

3. Availability of accessories

4. Sufficient fuel to reach the nearest petrol station

5. Wide range of finance options made available at the showroom

6. Imparting the basic mechanical functionalities of the car.

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 Table-1

Human Interaction

SNO OPINION POLITE KNOWLEDGE WARRANTY PRESENCE

1 YES 88 90 85 86

2 NO 12 10 15 14

3 TOTAL 100 100 100 100

Inferences

The graph clarity indicates that approximately 90% of the customers are positive about the human
interaction at the showroom.

Interpretation

The personnel score a high 93 (approx.) in being courteous, polite, knowledgeable and
communicating the warranty and schedule but there is a slight decrease in the attention provided
at the time of delivery, which is area to concentrate. Nevertheless, the overall human interaction
is above the acceptable levels.

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 Table-2

Product Information

SNO OPINION AVAILABILITY KNOWLEDGE TEST DRIVE

1 YES 88 86 88

2 NO 12 14 12

3 TOTAL 100 100 100

Inferences

The graph shows that the brochures, leaflets and price list are readily available. Approx.
85customers agree that the sales consultant was knowledgeable and was adept in handling the
queries of the customers. And almost every customer was offered a test drive (96%).

Interpretation: The showroom scores high in providing the relevant product information and
is leaving no stone unturned to provide the specific information needs of the customers. This also
reflects that the customer care personnel are well- equipped with the product information. At
most care has been taken to ensure that the customers are provided with the product information.

30
 Table-3

Time & Promptness

SNO OPINION FAST PROCESSING AT DELIVERY AT FAST

ORDER PROMISED PROCESSING AT
DELIVERY

1 YES 90 88 92

2 NO 10 12 08

3 TOTAL 100 100 100

Inferences

84 customers have responded positively about the work being carried out quickly. 25 people
among customers are unhappy about the promptness in the delivery of the
vehicle. Approximately 75 customers feel that the processing was fast.

Interpretation

This is the area where the customer satisfaction level has gone down to 75, this area is to be
handled well by the customer care as the other arrears are scoring well above 80. It is also to be
noticed that the customer is anxious to get the delivery of the car as soon as possible, and the

31
sales personnel have to take additional care to ensure that the customers is communicated the
unavoidable delays well in advance.

Table-4

Consistency

Consistency in processing

SNO OPINIONS ORDER PROCESS DELIVERY

1 YES 86 82

2 NO 14 18

3 TOTAL 100 100

Inferences

Consistency in processing:

The customers have responded positively, about 80 people (avg.) of them observing that the
processing has maintained a consistent level.
NO. OF RESPONDENTS

CONSISTENCY IN PROCESSING

100
86
90 82
80
70
60
50
YES
40
30 NO
18
20 14
10
0
ORDER PROCESSING DELIVERY
PARAMETERS

Interpretation

32
The showroom maintains a consistency level of 85% (avg. of processing consistency and
consistency in human interaction), which is acceptable.

33
 Table-5

Consistency in Human Interaction

SNO OPINION ALTERNATIVES ALTERNATIVES

1 YES 90 88

2 NO 10 12

3 TOTAL 100 100

Consistency in Human interaction

The interaction with the customers has fallen from 93 prior to the sale to 86 after the sale is done.

Interpretation

The showroom maintains a consistency level of 85 (avg. of processing consistency and

consistency in human interaction), which is acceptable.

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 Table-6

Convenience

SNO OPINION MECHANIC FUEL TEST AVAILABILITY CONVENIENCE

1 YES 82 90 88 86 84

2 NO 18 10 12 14 16

3 TOTAL 100 100 100 100 100

Inferences

The showroom scores a very high percentage in providing convenience to the customers.

Interpretation

Though there are 20 of people who have not utilized the finance option provided by the
showroom, the point to be taken is that 80 of the customers have utilized the options provided by
the showroom.

35
 CALCULATION OF SALES SATISFACTION INDEX

Sales satisfaction index is the index of overall satisfaction of Krishna customers as a whole. The
overall satisfaction is the average of the scores of the key variables, which in turn is the
cumulative of the positive responses of the customers, converted to a scale of ten. The responses
of the customers have also been recorded over repeat purchases, referrals and their satisfaction to
cross check with the calculated result

Sl.No Key Deliverables Score Score on scale of Ten

1 Human Interaction 210/225 9
2 Product Information 215/225 9
3 Time & Promptness 175/225 7
4 Consistency 254/300 8
5 Convenience 413/450 9
Cumulative Score 42

Sales Satisfaction Index

Overall Satisfaction = Average (Cumulative Score)

= 42/5
= 8.4

Sales Satisfaction Index = 8.4 on scale of ten

DATA ANALYSIS & INTERPRETAION

36
 1. Age Group

Sl.No Age Group No of people

A 20 to 30 9
B 30 to 40 25
C 40 to 50 25
D Above 50 22

INTERPRETAION:

From the above table shows that the respondents of the age group of years above 50 i.e.
22, the next group is 40-50 years i.e.25, the remaining age groups are 30-40 and 20-30
years having 25 and 9 respectively.

2) Occupation

37
 Sl.No occupation No of people
A Pvt Employee 35
B Business 20
C Govt employee 15
D Others 30

INTERPRETAION:

From the above table shows that the respondents of the occupation are mostly private employees numbered 35,
business people numbering 20 , Government employees 15 and others 30 people.

3) Which model of hyundai car do you own?

38
Sl.No Brand No of people
A I10 35
B I20 18
C Santro 27
D Others 20

Others
D, 20

Santro I10
C, 27 A, 35

I20
B, 18

Interpretation :-

The following graph shows the number of cars in the total of 100 persons i10 is owned
by 35 people, and I20 owned by 18 and Santro owned by 27 people and others by 27
people.

39
 4) Which feature is the best one in Hyundai car ?

Sl.No feature NO of people

A Mileage 20
B Price and style 28
C Quality 40
D All 12

Interpretation:-

The following graph shows the number of what features you consider while you purchase
in the total persons Mileage by 20, and Price And style by 28 and by quality 40,and all
by 12.

40
 5) how do you feel when you drive Hyundai car?

Sl.No RANK No of people

A Good 35
B Better 20
C Best 35
D Poor 10

INTERPRETAION:

From the above table shows that the respondents of the experience of people while driving Hyundai cars is good
i.e. 25, the next group is better i.e.20, the remaining people who feel best is 40 and others who feel poor
experience are 5 respectively.

41
 6) Are you satisfied with your vehicle’s mileage?

Sl.No Vehicle’s mileage No of percentage

A Good 60
B Better 20
C Best 13
D Poor 7

Interpretation :-

The following graph shows the number of people who satisfied with mileage of the
vehicle in the total respondents response given by persons Yes by 61 and No by 14.

42
 7) Will you recommend Hyundai product to anybody?

Sl.No Recommendation No of percentage

A Yes 70
B No 30

No
B, 30

Yes
A, 70

Interpretation :-

The following graph shows the number of people who recommend Hyundai cars in the
total persons yes by 45 and No by 30.

43
 8) What do you think about hyundai’s customer service?

Sl.No RANK No of people

A Excellent 40
B Good 20
C Better 30
D Poor 10

INTERPRETAION:

From the above table shows that the respondents of the people about Hyundai’s customer service is excellent i.e.
40, the next group is good i.e.20, the remaining people who feel better is 30 and others who feel poor experience
are 5 respectively.

44
 9) How do you feel about company’s response towards customers?

Sl.No Source No of percentage

A Excellent 25
B Good 45
C Better 20
D Poor 10

Interpretation :-

The following graph shows the number of response of customers towards the products
from the total number of 100 people good are good 17, Excellent 38, better 10 and poor
are 7.

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 10.Did you receive the product on delivery time?

Sl.No Delivery time No of percentage

A Yes 75
B No 25

No
B, 25

A Yes
B No

Yes
A,75

Interpretation :-

the following graph shows the number of customers who receive the product on delivery time is yes by 55
customers and no by 20 customers.

46
 11) Are you satisfied with company’s after sales service ?

Sl.No After sales service No of percentage

A Satisfied 90
B Not satisfied 10

Interpretation:
The number of customers who satisfy/not satisfied with the after sales service of the company
from a number of 100 customers are satisfied 75 and not satisfied 5.

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12. how do you feel the experience at show room?

Sl.No Best Brand Ambassadors No of percentage

A Satisfied 80
B Not satisfied 20

Satisfied
A

Series1
Not satisfied
B

Interpretation :-

The following graph shows the consumer’s experience at show room the number of customers
who satisfy is 55 and who does not satisfy is 29

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 12) Were you offered test drive?

Sl.No Test drive No of people

A Yes 70
B No 12
C Not remember 18

Interpretation :-

The following graph shows the number of customers who were offered test drive for the product is yes
by 80 customers and no by 7 customers.

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14) Are you satisfied with the Performance of Hyundai cars?

Sl.no Customer response percentage

A Satisfied 74
B Not satisfied 26

INTERPRETAION:

The following table shows that the respondents who satisfied with dealer’s performance is better71,good
15 and Poor is 4.

FINDINGS

50
 Krishna Hyundai enjoys a high patronage from its customers.

 Most of the customers had a good experience of shopping at Krishna Hyundai.

 The satisfaction levels can also measured with the level of recommendations to friends
and associates; It is evident that more than 80% customers are satisfied with the service
offered at Krishna Hyundai.

 The probability that the customers would repeat that purchase at the same showroom is
high, which is a good sign.

 The sale satisfaction index of Krishna Hyundai showroom is 8.4 on scale of ten (refer
page 32), which is exceptionally good, the showroom should persist on high levels of
commitment to maintain the good image it has created. The industry SSI (2003) is 104
out of 126 according to J D Power Asia pacific. And Hyundai scores 105 out of 125.

 In the interview it was found that the customers are happy about the training
programs under taken by the showroom, which train the customers to negotiate minor
breakdowns comfortably.

 It has been observed that 25% of customers have reported a slack in the delivery
process.

This is the only area of concern that has emerged form the city.

51
 SUGGESTIONS

The overall sales satisfaction index from the study reveals that the company is
performing very well and customers buying are much satisfied with the service given to
them.

The only couple problem noticed are:

 Some of the customers have complained about the slack in the delivery
process and timings. Therefore, this is the area which I recommend to the
showroom to focus a little bit more. It needs to improve its delivery
process and time. Need to become little quick and fast.

Some of the customers have also complained about the after

purchase services provided by the showroom. Even though the
complaints are minor, the showroom needs to resolve the
customer after purchase service issues in order to achieve
customer satisfaction.

52
 RECOMMENDATIONS

Mgf Hyundai should adopt defensive marketing strategy because as being one of the largest car
dealer in delhi market.

Hyundai must adapt new technology and train their employees.

Hyundai should adopt an offensive marketing strategy for attracting customers.

Better relationship with customers

India is 11th largest passenger car market in the world. India is the second-biggest market for
small cars after Japan. It accounts for 60 percent of the domestic market. Mgf hyundai must bank
upon this aspect.

53
 CONCLUSION

From the findings and analysis it is clear that Hyundai Car is highly preferred when compared to
the other brands of car in the same segment.

With the analysis through the survey conducted for a period of 2 months in Delhi on the
consumer satisfaction of Mgf Hyundai Car Dealer, the findings and analysis shows that 80% of
the consumers are happy with the dealer and also sales service and rest 20% of them says that
they are dissatisfied.

Since each customer is like an asset for an organization the company should try to improve in the
area of dissatisfaction.

We know that getting new customer is double the cost of retaining the old customer so the
company should focus on retaining the old customers whom a in the future purchase the product
or recommend others to purchase the product. Thus they help directly or indirectly for the
product sale.

Change is the only think to retain and attract the customers so the company should identify the
needs and dry to fulfill them.

54
 ANNEXURE

CUSTOMER SATISFACTION INDEX

Details:
Vehicle No: _______________________________________________________
Model: ___________________________________________________________
Customer Name: __________________________________________________
Telephone No: ______________________Mobile:________________________
Date: __________________Customer signature: ________________________

1. Age group
a) 20-30 b) 30-40 c) 40-50 d) Above 50

2. Occupation?
a) Employee b) business c) NRI d) others

3. Which model of hyundai car do you own?

a) Santro b) Verna c) Accent d) i10 e) i20

4.which feature is the best one in Hyundai car?

a) price b) style c) mileage d) quality e) mileage&quality
e) mileage & style

4. How do you feel when you drive hyundai car?

a) Good B) better c) best d) Poor
6. Are you satisfied with your vehicle mileage?
a) Yes b) No

7. will you recommend hyundai product to anybody?

a) Yes b) No

7. what do you think about hyundai’s customer service?

55
 a) Excellent b) Good c) Better d) Poor

9. How do you feel about company’s response towards customers?

a) Excellent b) Good c) Better d) Poor

10. did you receive the product on delivery time?

a) Yes b) No

11. are you satisfied company’s after sales service?

a) Satisfied b) not satisfied

12. How do you feel the experience at the showroom?

a) Satisfied b) not satisfied

13. were you offered test drive?

a) Yes b) No

14. Are you satisfy with their usage of the car?

a) fully satisfied b) just satisfied c) not satisfied

15. Please give your comments/suggestions to enable us to improve satisfaction of customers

at this Hyundai authorized showroom.

__________________________________________________________________

__________________________________________________________________

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 BIBLIOGRAPHY

1) Books

Kothari, C.R. Research Methodology, 3rd edition, 1997, Vikas Publishing House Pvt. Ltd., New
Delhi.

Kotler, Philip Marketing Management, 13th edition, 2009, Dorling Kindersley (India) Pvt.
Ltd., South Asia.

Varshney & Gupta; Marketing Management, Sultan Chand & Sons, 2005.

Gupta, S.L., Marketing Research, Excel Books, 2004.

Kotler & Armstrong; Principles of Marketing Management, Prentice hall India, 2003.

Aaker; Marketing Research, John Willey & Sons, 2001.

2) Newspapers

Times of India, 04/05/09, New Delhi

Times of India, 06/06/09, New Delhi

3) Websites

http://www.nytimes.com/2004/08/04/business/global-growth-gives-Hyundai-29-rise-in-
profit.html

http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402324/index.htm

http://www.automobile.com/industry-report-Hyundai-plans-for-hybrid-alternative-in-100-
percent-of-models-in-future.html

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