CHAPTER – I

INTRODUCTION

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 INTRODUCTION

Marketing occupies an important position in the organization of business

unit. Traditional view of the marketing assets that the customer will accept
whatever product the seller presents to them. In this way, the main concern of the
producer is to produce without considering the choice or the behavior of the
customer. But this point of view of marketing has now changed.

The modern concept may be viewed from the customer. Producer does not
produce whatever he likes but whatever consumer wants. Philip Kotler has rightly
remarked, ``Marketing is analysis, organizing resources, policies, activities with a
view to satisfying the needs and wants of chosen customer groups at a profit.`` In
this way, marketing performs all those functions which are necessary to pass on
goods from producer to the consumer in a process to satisfy their needs. Thus, the
prime objective of modern marketing is the satisfaction of customer`s needs.
Therefore, marketing functions are not limited to the functions of buying and
selling but they include all functions necessary to satisfy the customer such as
financing, storage, risk bearing, and after sale services, etc.

Meaning and definition of Marketing

Human wants unlimited and repetitive in nature. Business activities aim at

acquiring of wealth, converting it into desired form and making the final product
available for exchange for the satisfaction of human wants. These activities fall
under industry, commerce and trade. These three branches have one common
function-the exchange function. This important and powerful function is termed as
marketing. Thus, marketing here means exchange of goods for money or money’s
worth. Marketing is a very popular but is widely misunderstood term.

Even persons involved in marketing misunderstood the term. Generally, the

purchase and sale of commodities is taken to mean marketing. Thus, a producer
and businessman consider marketing a selling activity, whereas a purchaser feels
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that purchasing goods is marketing. But marketing is not only purchase and sale of
commodities.

It is something more. In order to understand the correct meaning of

marketing we have to understand different points of view. Mainly, there are two
angles from which we can discuss the meaning of marketing.

Product Oriented View

It is a traditional concept of marketing. This view is based on the assumption

that the product whatever it is acceptable to the customer. The producer is
concerned only with the production without taking into account the choice or the
behavior of the consumer. A few definitions supporting this view are given below.

 Marketing comprises both buying and selling activities.

Pyle

 Marketing consists of those efforts which affect transfer in the ownership of

goods and services and provide for their physical distribution.
Clark and Clark

Adam Smith in his book Wealth of Nations held that consumption is the
sole end and purpose of all production and interest of the producer ought to be
attended to only so far as it may be necessary for promoting that of the
consumer.`` Under Mercantile system, the interest of the consumer was virtually
sacrificed to that of the producer. They considered production and not
consumption as the ultimate end and object of industry and commerce. It was a
stage when the role of marketing was ignored. With the dawn of Industrial
Revolution major changes took place.

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 There was a shift from agriculture to industry, the living standards of the
people rose with the development of transport and communications. The
importance of marketing concept was realized for the first time. However, no
serious efforts were made to satisfy the wants of the consumers. The above
definitions of marketing are product oriented because they lay more emphasis on
the product rather than on the consumers. According to them the marketing
process comes to an end as soon as the product reaches to the hands of the
consumers. In fact, marketing is wider than this.

Customer Oriented View

Marketing is related to the needs of the buyer. Only such products are
brought forward which can satisfy the wants and tastes of the consumers. Modern
writers thus give more importance to the consumer. To please the consumer after
sales services are needed. Here we quote some of the well known customer
oriented definitions of marketing:

a) Marketing is the business process by which products are matched with

markets and through which transfer of ownership are affected.
Cundiff and Still

b) Marketing is the delivery of a standard of living.

Paul Mazur

c) Marketing is the creation and delivery of a standard of living.

Malcomm McNair
d) Marketing is a total system of interacting business activities designed to
plan, price, promote and distribute want satisfying products and services to
present and potential customer.
William J.Stanton

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 These definitions suggest that marketing is concerned with the movement
of goods and services from the plant to the consumer. Marketing activities are
directly concerted with the demand stimulating and demand fulfilling efforts of the
enterprise. All these activities are interrelated and interact with one another.

Hence it can be said that Marketing is the managerial process by which

products are matched with markets and through which transfers of ownership are
affected. The matching of services with markets to effect transfer of ownership is
marketing. With the changing of times and growing of intricacies, definitions of
marketing also underwent modifications.

The Institute of Marketing of the U.K.

Defined marketing as:-

The creative management function which promotes trade and employment

by assessing consumer needs and initiating research development to meet them. It
coordinates the resources of production and distribution of goods and services;
determines and directs the nature and scale of the total efforts required to sell
profitability, the maximum production to the ultimate user.

Leslie Rodger made slight changes and put it as:

Marketing is the primary management function which organizes and directs

the aggregate of business activities involved in converting customer purchasing
power into effective demand for a specific product or service and in moving the
product or service to the final consumer or user so as to achieve the company set
profit or other objectives. An analysis of the above customer oriented definitions
of marketing brings clearly the following points:

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 1. Marketing is a system – a system of business activities.
2. Marketing is designed to – plan, price, promote and distribute.
3. Object of action – want satisfying goods and services the beneficiaries
of which are the present and potential household consumers or industrial
users.
4. A managerial function – Marketing is one of the most powerful
managerial functions.
5. It takes into account the necessity of consumer orientation and
emphasizes innovations at the production stage.
6. The dynamic innovation is fully endorsed and its importance
recognized.
7. The supporters also point out that marketing is not only on e activity,
rather it is result of the interaction of many activities.
8. Marketing is incomplete without the satisfaction of consumer`s wants
completely. Consumer`s satisfaction is the prime function of the
marketing.

William J. Santon`s definition comprise all the above mentioned merits.

Marketing is a total system of interacting business activities designed to plan,
price promote and distribute want satisfying products and services to present
potential customers.

Elements or Functions of Marketing:

The functional approach of marketing consists of a number of activities

called marketing functions. A marketing function is, an act or operation or service
by which original product and the final consumer are linked together. Sometimes
it may not be possible to divide the whole marketing process into a few functions.

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At present no unanimity is found regarding a proper classification of marketing
functions. F.W.Ryan lists 120 functional elements grouped into 16 categories
other writers suggest form as few as eight to as many as twenty or thirty such
functions. We can group these various functions of marketing into three major
heads:

1. Merchandising Functions.
2. Physical Distribution Functions.
3. Facilitating Functions.

Merchandising Functions:

The process of the passing of goods into the customer`s hands is called the
function of exchange. This process can be divided into buying and assembling and
selling.

a) Buying and Assembling

Buying is the first step in the process of marketing. A manufacturer has to
buy raw material for production; a wholesaler has to buy goods to sell them to the
retailer; a retailer has to buy goods from seller the buyer. Assembling means
creation and maintenance of the stock of goods, purchased from different sources.
Generally, the dealer or middleman purchases the goods from more than one
seller. In such a case, the goods have to be collected and assembled at one place.

This buying and assembling are two distinct processes. Both these
processes involve related elements such as kind, quality, and price, date of
delivery and other terms and conditions. All these require specialized knowledge
on the part of the buyers.

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b) Selling
Selling is important from the point of view of the seller as well as the
consumer as the title to the goods is transferred from seller to buyer only through
selling. The profit making object of a business concern is achieved only through
the sale of goods. After Industrial Revolution and increasing use of machinery,
mass production has become possible which in its turn requires mass selling of
goods. Demand creation is a different job which is further complicated by the
presence of legal selection of channel for distribution etc.

Physical Distribution System:

This function relates to the process of transporting the goods from the place of
seller to the place of buyer and includes two main functions:

(a) Transportation, and

(b) Storage and warehousing.

A. Transportation

Marketing system requires an economical and effective

transportation system. A good system of transportation increases markets has been
possible by the quick development of transportation and communication. It has
resulted in the expansion of markets, regular supply at lower price and improved
services to the consumers.

Facilitating Functions:

These functions make the marketing process easy and include

financing, risk-bearing, standardization, pricing, advertising, and sales promotion
and market information, etc.

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a) Financing:
It is very difficult to carry on marketing activities smoothly without the
availability of adequate and cheap finance. Commercial Banks, Cooperative
Credit Societies, and Government Agencies arrange for short term finance,
medium term finance, and long term finance to facilitate marketing. Trade
credit is also one of the important sources of finance.

b) Storage and Warehousing:

When production is seasonal but consumption is perennial or when
production is continuous but consumption preserving of goods between the
time of their production and the time of their consumption. It facilities a steady
flow of commodities in the market.

Warehouses can be maintained at central places from where the

distribution can be made according to the needs of the consumers. Storage
tends to adjust the supply to demand of the product and also holds the price
line. Thus storage can be regarded as a function of equalization. It creates time
and place utilities.

c) Standardization:
Standardization has now been accepted as an ethical basis of marketing. A
standard is a measure that is generally recognized as a model for comparison.
Standards are determined on the basis of color, weight, quality, and other
factors of a product. It facilitates purchase and sale of goods. Goods are
purchase by brand name. Standardization will relieve buyers from examining
the product in terms of contents, quality, weight, size etc.

d) Market Information:
Importance of marketing information has been recognized with the extent
of markets and mass production. Decisions on marketing are based on
information regarding market conditions.

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e) Risk-bearing:
Marketing of goods involves innumerable risks due to theft, deterioration
accidents, etc. The most important factor responsible for the risk is fluctuation
in prices. The other factors may be change in fashion, competition in the
market, change in habits of the consumers, natural calamities, etc.

f) Pricing:
Pricing is also an important function which is closely alluding to selling.
Price policy of the concern directly affects the profit element and therefore, its
successful functioning.

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NEED FOR THE STUDY:

Customer Satisfaction (CS) is a customer-centric business strategy with

the goal of maximizing profitability, revenue, and customer satisfaction.

Technologies that support this business purpose include the capture, storage and

analysis of customer, vendor, partner, and internal process information. Functions

that support this business purpose include sales, marketing, customer service,

training, professional development, performance management, human resource

development, and compensation.

In view this present project work concentrates on “A STUDY ON

CUSTOMER SATISFACTION TOWARDS PIONEER TVS MOTORS

PVT.LTD”, GUNTUR.

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SCOPE OF THE STUDY

The study is conducted on the Customer Satisfaction of analysis for

PIONEER TVS MOTORS .The study is confined to the area of city in GUNTUR.

The sample of the respondent’s chosen for the study is 100 members’

effective consumers.

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OBJECTIVES OF THE STUDY:
 The main objective was to study the customer behavior towards motor
vehicle with special reference to TVS motor cycles in GUNTUR
district. The Various sub objectives were to find out the following:

 To study the various methods of customer awareness regarding the

products of TVS motors.

 To know the market share of tvs motors according to the segmentation.

 To find the ways to develop better relationship with the customers.

 To find the source of awareness regarding the bike in the customers

mind.

 To find the tough competitors for the tvs star city in the market.

 The factors affecting the customers buying decision regarding the

purchase of motor Cycles and opinion on the after sales services and
attributes offered by the tvs manufacturing motorcycles.

 To the customers preferences towards two wheelers, and satisfaction

levels of customers about after sale services.

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SIGNIFICANCE OF THE STUDY:

Customer Satisfaction is one of the newest innovations in customer service

today. Stands for Customer Satisfaction and helps the management and customer
service staffs cope with customer concerns and issues. CS involves gathering a lot
of data about the customer. The data is then used to facilitate customer service
transactions by making the information needed to resolve the issue or concern
readily available to those dealing with the customers. This results in more satisfied
customers, a more profitable business and more resources available to the support
staff. Furthermore, Customer Satisfaction systems are a great help to the
management in deciding on the future course of the company.

As mentioned, there is much data needed for the system to work. These fields
include the customer name, address, date of transactions, pending and finished
transactions, issues and complaints, status of order, shipping and fulfillment dates,
account information, demographic data and many more. This information is
important in providing the customer the answer that he or she needs to resolve the
issue without having to wait for a long time and without going to several
departments. With just a few mouse clicks, a customer support representative for
example can track the location of the customer's package or order. This is
infinitely better than the cumbersome process of tracking shipments previously.
Furthermore, the customer service representative will also be able to see the
previous concerns of the customer. This is a great help especially if the customer
is calling about the same issue since he or she will not have to repeat the story all
over again. This results in less time in resolving the issue, thus, higher productivity
of the support staff.

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 Customer Satisfaction systems are also important to the top management
because it provides crucial data like customer satisfaction and efficiency of service
by the frontline crews. A piece of Customer Satisfaction software will also be able
to generate the needed reports for product development or new concepts. Phasing
out one of the products on the shelves or making adjustments to one of the
products sold.

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RESEARCH METHODOLOGY:

MARKETING RESEARCH:

Definition of marketing research as approved as by the board of directors of

the association of American marketing association is:

“Marketing research is the function which links the customer and public to
the marketer through information – information used to identity and define
marketing opportunities and problems generate define and understanding of
marketing as process”.

Simply, marketing research is the systematic design collection analysis and

reporting of data finding relevant to a specific marketing situation facing the
company. Carefully planning through all stages of the research is a necessity.

Objectivity in research is all-important. The heart of scientific method is

the objective gathering of the information.

The function as marketing research with in the company as to provide the

information and analytical necessary for effective.

 Planning of the future marketing activity.

 Control of the marketing operation in the present.
 Evaluation of marketing results.
A research may under take any of the three types of research investigation
depending upon the problem. This type of research included:

1. Basic research
2. Applied research
3. Designated Fact Gathering

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BASIC RESEARCH:

It is also known as the pure fundamental research, which refers to those

studies, sole purpose of which is the discovery of new information. It is conducted
to extend the horizons on given area of knowledge with no immediate application
to existing problems.

APPLIED RESEARCH:

It is attempt to apply the various marketing technique, which have been

developed as research, first and later on they become applied research techniques.
It is on attempt to apply the basic principles and existing knowledge for the
purpose of solving operational problems.

DESIGNATED FACT GATHERING:

It refers to a research where the investigation attempts to gather some pre-

determined data.

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STEPS IN MARKETING RESEARCH:

Marketing research process can be out through following steps.

Define the problems and research objectives

Develops the research plan

Collect the information

Analysis and interpretation

Present the finding.

RESEARCH METHOD:

It must be classified on the basis of the major purpose of the investigation.

In this problem description studies have been undertaken, as the objective of the
project is to conduct the market shares study to determine the share of market
received by the company to the competitor.

DATA COLLECTION:

The information needed to further proceed had been collected through

primary and secondary data.

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PRIMARY DATA:

It consists of information collected for the specific purpose, survey research

was used and he all the details of TVS bikes Survey research is the approached
gathering description and information.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere

having been collected for another purpose. Any researcher begins the research
work by first going through secondary data. Secondary data includes the
information available with company. It may be the findings of research previously
done in the field. Secondary data can also be collected from the magazines, news
papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:

The basic method adopted in conducting the study is a structured

questionnaire. Questionnaire is administered on the sample respondents. However
there are certain cases where personal interactive method is followed with
customers to find the satisfaction level.

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LIMITATIONS:

In undertaking the study, the researcher encountered certain problems.

 Firstly, the respondents were not available readily and the data collected as
per the convenience of the respondents.

 Secondly, the organizational policies had its influence on the respondent’s

opinions at the time of collection of data.

 Thirdly, most of the data was collected through indirect sources, due to the
inconvenience of meeting the respondents.

 Fourthly, the limitations of sampling had an effect on the study as it was

concentrating on a particular segment of organizations.

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 CHAPTER-II

INDUSTRY PROFILE AND

COMPANY PROFILE

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 INDUSTRY PROFILE

INTRODUCTION TO TWO WHEELER INDUSTRY:

India is the second largest producer and manufacturer of two-wheelers in

the world. Indian two-wheeler industry has got spectacular growth in the last few
years. Indian two-wheeler industry had a small beginning in the early 50's. The
Automobile Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two
being scooters and mopeds. Indian companies are among the largest two-wheeler
manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian
companies that top the list of world companies manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in the mid

1980s. The openness of Indian market to foreign companies lead to the arrival of
new models of two-wheelers into India. Easy availability of loans from the banks,
relatively low rate of interest and the discount of prices offered by the dealers and
manufacturers lead to the increasing demand for two-wheeler vehicles in India.
This lead to the strong growth of Indian automobile industry.

H i st o r y

The inspiration for arguably the first motorcycle was designed and built by
the German inventors Gottlieb Daimler and Wilhelm Maybach in Bad Cannstatt
(since 1905 a city district of Stuttgart) in 1885.[1] The first petroleum-powered
vehicle, it was essentially a motorized bicycle, although the inventors called their
invention the Reitwagen ("riding car"). However, if one counts two wheels with
steam propulsion as being a motorcycle, then the first one may have been

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American. One such machine was demonstrated at fairs and circuses in the eastern
U.S. in 1867, built by Sylvester Howard Roper of Roxbury, Massachusetts.

In 1894, Hildebrand & Wolfmüller became the first motorcycle available

for purchase. In the early period of motorcycle history, many producers of bicycles
adapted their designs to accommodate the new internal combustion engine.

As the engines became more powerful, and designs outgrew the bicycle
origins, the number of motorcycle producers increased.

Until the First World War, the largest motorcycle manufacturer in the world
was Indian, producing over 20,000 bikes per year. By 1920, this honor went to
Harley-Davidson, with their motorcycles being sold by dealers in 67 countries,
until 1928 when DKW took over as the largest manufacturer.

After the Second World War, the BSA Group became the largest producer
of motorcycles in the world, producing up to 75,000 bikes a year in the 1950s. The
German company NSU Motorenwerke AG held the position of largest
manufacturer from 1955 until the 1970s.

From the 1960s through the 1990s, small two-stroke motorcycles were
popular worldwide, partly as a result of East German Walter Kaaden's engine
work in the 1950s.

Today, the Japanese manufacturers, Honda, Kawasaki, Suzuki, and Yamaha

dominate the motorcycle industry, although Harley-Davidson still maintains a high
degree of popularity in the United States. Recent years have also seen a resurgence
in the popularity of several other brands sold in the U.S. market, including BMW,
KTM, Triumph, Aprilia, Moto Guzzi and Ducati.

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 Outside of the USA, these brands have enjoyed continued and sustained
success, although Triumph, for example, has been re-incarnated from its former
self into a modern world-class manufacturer. In overall numbers, however, the
Chinese currently manufacture and sell more motorcycles than any other country
and exports are rising. The quality of these machines is asserted to be somewhat
lower than their Japanese, European and American counterparts.

Additionally, the small-capacity scooter is very popular through most of the

world. The Piaggio group of Italy, for example, is one of the world's largest
producers of two-wheeled vehicles. The scooter culture has, as yet, not been
adopted widely in North America.

Kinetic Honda was introduced in the Indian market during the mid 80s. The main
feature of Kinetic Honda is its ease of use. This helped the youngsters and the
women to buy scooters.

Construction
Motorcycle construction

Motorcycle construction is the engineering, manufacturing, and assembly of

components and systems for a motorcycle which results in performance, cost and
aesthetics desired by the designer. With some exceptions, construction of modern
mass-produced motorcycles has standardized on a steel or aluminum frame,
telescopic forks holding the front wheel, and disc brakes. A one- to eight-cylinder
gasoline powered engine coupled to a manual, five- or six-speed sequential
transmission drives the swing arm-mounted rear wheel by a chain, driveshaft or
belt.

Key players in the Two-wheeler Industry :

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 After facing its worst recession during the early 1990s, the two-wheeler
industry bounced back with a 25% increase in volume sales in February 1995. The
scooters are considered as family vehicles. There are many two-wheeler
manufacturers in India. Major players in the 2-wheeler industry are Hero Honda
Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd
(TVS).

The other key players in the two-wheeler industry are Kinetic Motor
Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML),
Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal
Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are
Motorcycles, Scooters and Scooterettes/Mopeds.

Motorcycles in India:
Bikes comprise a major segment of Indian two wheeler industries. Some of
the major two wheeler auto player who has their share in the two wheeler bikes
industries is as follows.

Company : Bajaj Auto Ltd

 Bajaj Avenger
 Bajaj CT 100
 Bajaj Platina
 Bajaj Discover DTSi
 Bajaj Pulsar DTSi
 Bajaj Wave

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  Bajaj Wind 125
 Sonic DTSi

Company : HERO HONDA

 Hero Honda Achiever

 Hero Honda CD Dawn
 Hero Honda CD Deluxe
 Hero Honda Glamour
 Hero Honda Glamour-Fi
 Hero Honda Karizma
 Hero Honda Passion Plus
 Hero Honda Pleasure
 Hero Honda Super Splendor
 Hero Honda Splendor NXG
 Hero Honda CBZ X-Treme

Company : Kinetic Motor Company

 Kinetic Aquila
 Kinetic Boss
 Kinetic Challenger
 Kinetic Comet
 Kinetic GF
 Kinetic Stryker
 Kinetic Velocity

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Company : TVS MOTOR

 TVS Apache
 TVS Centra
 TVS Fiero
 TVS Star
 TVS Victor
 TVS star city

 TVSstar sports

Company : Yamaha Motor India

 Yamaha CruxS
 Yamaha G5
 Yamaha Gladiator

Scooters in India :

The scooter and the scooterette share in the Indian two wheeler market is
13.4%. The main models available in India are Bajaj Chetak, Honda Eterno,
Kinetic Blaze, LML NV SPL and LML Select II.

Scooterettes/Mopeds :

TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50.
TVS also launched India's first indigenous scooterette: Scooty in 1994. This
segment has about one-fourth share in the Indian two wheeler industry. The major
models available in India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi,

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Hero Honda Pleasure, Kinetic Kine, Kinetic 4S, Kinetic Nova, Kinetic Zoom,
Kinetic V2 Range, Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo
Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.

HISTORY OF COMPANY

Type : Public Company

Date of Establishment : 1982

Revenue : 1043.85 (USD in Millions)

Market Cap : 25535.9323775

(Rs. in Millions)

Corporate Address : Jayalakshmi Estates,

29 (Old No.8) Haddows
Road, Chennai-600006,
Tamil Nadu.
www.tvsmotor.co.in
Management Details
Chairperson : Venu Srinivasan
MD : Venu Srinivasan
Directors : C R Dua, H Lakshmanan,
K S Bajpai, K S Srinivasan,
Prince Asirvatham,
R Ramakrishnan, T Kannan,

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 T S Rajagopalan,
Venu Srinivasan.
Business Operation : Automobile Two & Three
Wheelers

COMPANY PROFILE
The TVS group was established in 1911 by Shri. T. V. SundaramIyengar. He
was born in 1877 in Thirukkurungudi in the Tirunelveli district of Madras
Presidency, British India. As one of India’s largest industrial entities it epitomizes
Trust, Value and Service.TVS Motor Company is the flagship company of the
TVS Group, third largest two-wheeler manufacturer in India and one among the
top ten in the world, with annual turnover of more than USD 1 billion in 2008-
2009, and is the flagship company of the USD 4 billion TVS Group.
 At first, TVS Motor company Ltd. Named as SundaramClyton Ltd.Which
is located in Hosur(Tamilnadu) in 1980.
 In 1982, it was incorporated as Indian Motorcycle Pvt.Ltd
 In 1984, its name was changed to Indo Suzuki Motorcycles Pvt.Ltd
because of the collaboration with Suzuki motor corporation of Japan.
 In 1986, its name changed to TVS SUZUKI Ltd. even though the company
started producing all kinds of two wheelers like
mopeds,scooters,motorcycles,the collaboration with Suzuki continued for
motor cycles only.
 The collaboration with Suzuki motor corporation ended in 2001.Since then
the name of the company changed to
 It has four manufacturing facilities located Hosur(Tamilnadu),
Mysore(karnataka),Baddi(Himachal Pradesh) and Indonesia and a
production capacity of 300 thousand units a year.

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 The chairman and managing director of the company is Mr.VENU
SRINIVASAN who is thegrand son of T.V.SUNDARAM IYENGAR.
 The group has managed to run 33 companies that account for a combined
turnover of nearly $3 billion

AWARDS:
 TVS Motor won the Deming Application Prize in 2002.
 The same year, the work done for the TVS Victor motorcycle won TVS
Motor the National Award for successful commercialization of indigenous
technology from the Technology Development Board, Ministry of Science
& Technology, Government of India. In 2004.
 TVS Scooty Pep won the 'Outstanding Design Excellence Award' from
BusinessWorld magazine and the National Institute of Design,
Ahmedabad.The effective implementation of Total Productivity
Maintenance practices won TVS Motor the TPM Excellence Award given
by the Japan Institute of Plant Maintenance in 2008.
 TVS Motor has won several management awards, notable among them
being the Emerging Corporate Giant in the Private Sector awarded by The
Economic Times and the Harvard Business School Association of India.
 Business Today magazine awarded TVS Motor the Best Managed
Company and the Most Investor Friendly Company awards. Its advertising
practices won it the Good Advertising award by Auto India Best Brand
Awards 2009.
 Company Chairman Venu Srinivasan is a recipient of several awards for
corporate excellence such as the Star of Asia Award by Bloomberg
BusinessWeek and the JRD Tata Corporate Leadership Award.

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 The University of Warwick, United Kingdom gave him an honorary
Doctorate of Science degree while the Government of India honoured him
with the Padma Shri, one of India's highest civilian distinctions.
 Innovative implementation of Information Technology has won TVS Motor
the Ace Award for Most Innovative NetWeaver Implementation in 2007
awarded by technology major SAP AG and the Team Tech 2007 Award of
Excellence for Integrated use of Computer-aided engineering Technologies.
MISSION STATEMENT:
We are committed to being a highly profitable and Socially Responsible,
leading manufacturer of high value of money, environmentally friendly,
lifetime personal transportation products under the TVS brand for
customers predominantly in Asian markets and to Provide fulfillment and
prosperity for employees, dealers and suppliers.
VISION STATEMENT:
Driven by the customer
TVS Motor will be responsive to customer requirements consonant with its
core competence and profitability. TVS Motor will provide total customer
satisfaction by giving the customer the right product, at the right price, at
the right time.
The Industry Leader
TVS Motor will be one among the top two two-wheeler manufacturers in
India and one among the top five two-wheeler manufacturers in Asia.
Global overview
TVS Motor will have profitable operations overseas especially in Asian
markets, capitalizing on the expertise developed in the areas of
manufacturing, technology and marketing. The thrust will be to achieve a
significant share for international business in the total turnover.
At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant

31
 benchmarking against international leaders.
Committed to Total Quality
TVS Motor is committed to achieving a self-reviewing organization in
perpetuity by adopting TQM as a way of life. TVS Motor believes in the
importance of the process. People and projects will be evaluated both by
their end results and the process adopted.

The Human Factor

TVS Motor believes that people make an organization and that its well-being is
dependent on the commitment and growth of its people. There will be a sustained
effort through systematic training and planning career growth to develop
employees talents and enhance job satisfaction. TVS Motor will create an enabling
ambience where the maximum self-actualisation of every employee is achieved.
TVS Motor will support and encourage the process of self-renewal in all its
employees and nurture their sense of self worth.

Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects with all business activities and ensure protection of employees and
environment including development of surrounding communities. TVS Motor
strives for long-term relationships of mutual trust and interdependence with its
customers, employees, dealers and suppliers.
TVS Motor Company was incorporated in 1982. It is third largest two-wheeler
manufacturer in India and one among the top ten in the world. TVS Motor is the
flagship company of the $4 billion TVS Group.
The company manufactures a wide range of two wheelers such as mopeds,
scooters and motorcycles.
It has four manufacturing facilities located at Hosur, Mysore, Himachal Pradesh
and Indonesia and a production capacity of 300 thousand units a year.

32
In the motorcycles segment company it has created brands like TVS Apache, TVS
Star and TVS Flame.
In variomatic scooters segment TVS Motor manufactures brands like TVS Scooty
Pep + and TVS Scooty Teenz.
It has created brands like TVS XL Super and TVS XL Heavy Duty in mopeds
segment.

Milestones:
In the year 1980 TVS Motor launched India’s first two-seater 50cc moped TVS
50.
In 1984, the two-wheeler major became the first Indian company to introduce
100cc Indo-Japanese motorcycles.
In 1994 it launched India’s first indigenous scooterette -- TVS Scooty, a 100cc
model.
KEY POLICIES
Environment policy:
Towards creating and preserving a cleaner environment Tvs Motors Ltd.
Manufacturer of two-wheelers is committed to prevention of pollution, continual
improvement of our environment performance and compliance with all applicable
environmental legislation and regulations.
Towards this, we shall strive to:
 Create proactive environmental management systems that address all
environmentally significant aspects related to our products and process.
 Minimize the generation of waste and conserve resources through better
technology and practices, and
 Promote environmental awareness amongst our employees and motivate
them to fulfill our commitments.
TVS pledges towards creating and preserving cleaner environment.

33
Quality policy:
TVS continues to firmly believe in providing the customer value for money,
for years of their products and services. This they shall maintain and improve.
In decision-making, quality, safety and service they give much consideration
for productivity, cost and delivery. Quality shall be built into every aspect of their
work life and business operations. Quality improvements and customer
satisfaction shall be the responsibility of every employee.
TPM POLICY
TVS adopts Total productivity maintenance as a means of creating a safe and
participative work environment in which all employees target the elimination of
losses in order to continuously enhance the capacity, flexibility, reliability and
capability of its processes, leading to higher morale and greater organizational
profitability.
TVS BRAND
Their Brand Identity:
TVS Brand is the visual expression of their thoughts and actions. It conveys
to everyone that their intention is to constantly inspire confidence. Their customers
are the primary audience for their brand. Indeed, their brand identity is shaped as
much always reinforces the distinctiveness and the power of their brand. They can
do this by living upon brand essence and by continuously seeking to enhance their
customer’s experience. In doing so, they ensure a special place for ourselves in the
hearts and the minds of their customers.
Brand Essence:
 Our Brand Essence is the soul of our brand.
 Our Brand essence encapsulates our mission at Hero Honda.
 It is the singular representation of our terms of endearment with or
customers.
 It provides the basis on which we grow profitably in the market.
 Our Brand Essence is Excitement.

34
  Tvs strives to inspire confidence through excitement engineering.
 Blending together youthful creativity and competitive technology to exceed
the spoken and the implicit expectations of our customers.
 By challenging the given. By exploring the unknown and there by
stretching ourselves toward tomorrow, today.

Brand Values:
We live our brand by its values of learning, innovation, perfection, speed
and Transparency. Tvs will inspire confidence through excitement engineering.
Learning:
Learning is how we ensure proactively. It is a value that embraces
knowledge as the platform for building well informed, reasoned a decisive action.
Innovation:
Innovation is how we create the future. It is a value that provokes us to
reach beyond the obvious in pursuit of that which exceeds the ordinary.
Perfection:
Perfection is how we set new standards. It is a value exhibits our
determination to excel by endeavoring to establish new benchmarks all the time.
Speed:
Speed is how we convey clear conviction. It is a value that keeps us sharply
responsive, mirroring our commitment towards our goals and processes.
Transparency:
Transparency is how we characterize ourselves. It is a value that makes us
worthy of credibility through integrity, of thrust through sensitivity and loyalty of
interdependence.
PIONEER AUTOMOTIVES TVS SERVICE CENTER IN GUNTUR

35
PIONEER AUTOMOTIVES TVS dealer in Guntur.Find Agartala
PIONEER AUTOMOTIVES TVS Showroom address and contact number
here.

PIONEER AUTOMOTIVES
St. Mathews west parish Compound,Beside Congress Offices.G.T Road,
Guntur-522001,Andhra Pradesh
Phone: 0863-2221107/2222166/5534501/2221107
PIONEER AUTOMOTIVES TVS Showroom may present in one or more
location .some PINEER AUTOMOTIVES TVS dealer amy not sell all TVS
models. Kindly confirm over the phone before visiting the showrooms.

TVS bikes Serviced at PIONEER AUTOMOTIVES Showroom in

Guntur

36
A bike for anyone
TVS Motor currently manufactures a wide range of two-wheelers from
mopeds to racing inspired motorcycles.
Motorcycles (Apache RTR 180, Flame DS 125, Flame, TVS Jive, Star City,
Sports)
Variomatic Scooters (TVS Wego, Scooty Streak, Scooty Pep+,
ScootyTeenz)
Mopeds (TVS XL Super, TVS XL Heavy Duty)
Penchant for Quality
The company has 4 plants - located at Hosur and Mysore in South India, in
Himachal Pradesh, North India and one at Indonesia. The company has a
production capacity of 2.5 million units a year.
Innovation at the helm
TVS Motor's strength lies in design and development of new products - the
latest launch of 7 products on the same day seen as a first in automotive
history. We at TVS deliver total customer satisfaction by anticipating
customer need and presenting quality vehicles at the right time and at the

37
 right price. The customer and his ever changing need is our continuous
source of inspiration.
15 million smiles on the Road
TVS has always stood for innovative, easy to handle, environment friendly
products, backed by reliable customer service. No wonder, then, that our 15
million customers on the road have a reason to smile.
Milestones:
 In the year 1980 TVS Motor launched India’s first two-seater 50cc moped
TVS 50.
 In 1984, the two-wheeler major became the first Indian company to
introduce 100cc Indo-Japanese motorcycles.
 In 1994 it launched India’s first indigenous scooterette -- TVS Scooty, a
100cc model.

AWARDS:
 TVS Motor won the Deming Application Prize in 2002, becoming the first
and only Indian two-wheeler company to win the award given to companies
that do outstanding work in the field of Quality Management. It is
considered to be one of the world's most prestigious quality awards.
 The same year, the work done for the TVS Victor motorcycle won TVS
Motor the National Award for successful commercialization of indigenous
technology from the Technology Development Board, Ministry of Science
& Technology, Government of India.
 In 2004, TVS Scooty Pep won the 'Outstanding Design Excellence Award'
from Business World magazine and the National Institute of Design,
Ahmadabad.

38
 The effective implementation of Total Productivity Maintenance practices
won TVS Motor the TPM Excellence Award given by the Japan Institute of
Plant Maintenance in 2008.
 TVS Motor has won several management awards, notable among them
being the Emerging Corporate Giant in the Private Sector awarded by The
Economic Times and the Harvard Business School Association of India.
Business Today magazine awarded TVS Motor the Best Managed
Company and the Most Investor Friendly Company awards. Its advertising
practices won it the Good Advertising award by Auto India Best Brand
Awards 2009.
 Company Chairman VenuSrinivasan is a recipient of several awards for
corporate excellence such as the Star of Asia Award by Bloomberg
Business Week and the JRD Tata Corporate Leadership Award.
 The University of Warwick, United Kingdom gave him an honorary
Doctorate of Science degree while the Government of India honoured him
with the Padma Shri, one of India's highest civilian distinctions.
 Innovative implementation of Information Technology has won TVS Motor
the Ace Award for Most Innovative Net Weaver Implementation in 2007
awarded by technology major SAP AG and the Team Tech 2007 Award of
Excellence for Integrated use of Computer-aided engineering Technologies.
PIONEER company is in business for the past five decades, the company
Established in the year 1969.At first, the company sales the spare parts of
Lorries, after that it had entered into automotives and changed the name
PIONEER TVS in 1980’s.Their Business areas include Automobile
dealerships, sewing machines, finace/hire purchasing of two wheelers.
Their group of companies comprises the following.
 PIONEER AUTOMOTIVES
 PIONEER FINANCE

39
 PIONEER FINANCIAL SERVICES
 PIONEER REALTORS
 PIONEER TRUCKERS
They are having an excellent showroom beside Congress office, G.T.Road
GUNTUR town with a built up area of 15000 sft, which has a 80 ft
frontage.
ACHIEVEMENTS FOR THE YEAR 2011-2012:
 NO.1 rank in TVS Mopeds sales in all INDIA
 NO.1 rank in TVS Motorcycle sales in SOUTH INDIA
 NO.2 rank in over all TVS Two wheeler sales in ALL INDIA

PIONEER AUTOMOTIVES:
Authorised Main Dealer for TVS MOTOR COMPANY LTD(formerly
TVS SUZUKI LTD) for the entire GUNTUR DISTRICT with an average
retails of 1200 vehicles per month.Dealers for USHA Sewing machines and
appliances.

40
 MANAGEMENT DETAILS OF PIONEER TVS
Ch.RAMESH
(PROPRITER)

Ch.RAKESH
(MD)

V.S.R.PRA T.S.MURTHY PRASAD RAMU

SAD P.A(RAKESH) (ACCOUNTANT) (IN HOUSE
(GENERAL FINANCE
MANAGER)

Under V.S.R.PRASAD (G.M):

 24 sales executives
 21 Assistant sales man

41
 Under T.S.MURTHY (P.A):
 K.A.PRASAD WORK SHOP MANAGER
 M.SRINIVASA RAO SUPERWISOR
 T.DILEEP SUPERWISOR
 SK.ALLABASHA FLOOR SUPERWISOR
 T.DHANA LAKSHMI COMPUTER OPERATOR
 K.KINATH KUMAR SUPERWISOR ,. Etc……
UNDER PRASAD (ACCOUNTANT MANAGER):
 TWO ASSISTANTS
UNDER RAMU(IN HOUSE FINANCE MANAGER):
 FIVE ASSISTANTS
Details of Sales:
 TVS WEGO,TVS APACHE RTR 180 ABS,
TVS STAR CITY,TVS JIVE,TVS SPORT,TVS MAX4R,
SCOOTY PEP+,SCOOTY STREAK,SCOOTY TEENZ,
TVS XL MOPEDS,etc which are sold by PIONEER TVS.
 PIONEER TVS COMPANY have the employees close to 100.
 The number of two-wheelers which are sold by PIONEER TVS per
month.
 PIONEER TVS offers Exchange Mela of bikes for two wheelers to
satisfy the customer convenience of various two-wheelers.
It also offers test ride.
 The registration of the two wheelers is done by the agents who are in
touch with

42
 PIONEER TVS
 It also provides Two-Wheeler loans from respective banks like
ICICI, HDFC for the customer convenience with lowest rate of
interest rate of payment.
 The rate of interest charged on customer will depend on the amount he
paid and loan period.
Details about the Two-Wheelers
 All TVS Two-Wheeler motors are manufactured with pure
Indian Technology with not foreign collaboration. The main
manufacturing unit of TVS Motors is located in TamilNadu.
 The maintenance cost of TVS two wheeler is zero and the cost of
spare parts is very less when compare with other two wheeler spare
parts. The main competitors of TVS two wheelers are the two wheelers
from the Hero Honda.
The minimum warranty of engine is two years.
TVS two wheeler are manufactured with the CC &BHP.
BHP - Break Horse Power
CC - Centrifugal Force of Engine(cubic centimeter)
RMP - Revolution per Minute

Details of Work Shop (Service Department)

The workshop or service department has the following
Customer Lounge:Customer lounge is a place where to complete the
customer are asked to wait for this service to entertain the customer
the administration had provided Television and newspapers.
Supervisor cabin:
There is one supervisor who is the head of the service department .He
looks after the whole service department and is responsible for preparing
the job card.
43
 Engine Room:
There is a separate cabin called engine room for the repair room for the
repair works of the engine.

Water Room:
There is a separate block to wash the vehicles .A no. of vehiclesare
serviced here.
Mechanics:
There is no. of automatic benches service with well trained. Senior
mechanics.
Job Card:
Job Card contains the details of the vehicle like, engine number, model,
customer, problem, amount of service, amount for spare parts, date and
time of delivery.
Spare Parts:
A well versed spare parts block contains different racks for different
models of Vehicles.
Go down:
There is also one huge Go down which has the capacity of putting a
maximum vehicles.
BRAND AMBASSADORS OF TVS MOTORCYCLES:
 VIRAT KOHLI (INDIAN CRICKETER) FOR TVS SPORT
 SANIA MIRJA (INDIAN TENNIS PLAYER) FOR TVS SCOOTY
 M.S.DHON (INDIAN CRICKETER&CAPTAIN) FOR TVS STAR
CITY

44
 CHAPTER-III
THEORETICAL FRAMEWORK

45
 THEORETICAL FRAMEWORK

Introduction of Customer Satisfaction

Customer satisfaction is one of the most studied areas in marketing. Over

the past 20 years, more than 15,000 academic and trade articles have been
published on the topic. In fact, the journal of Advertising research has suggested
that customer satisfaction surveys may be the fastest growing area in market
research. Such devotion to the subject is certainly understandable given that
satisfaction is a central theme of the marketing concept and is frequently included
in the mission statements and promotional campaigns of American corporations.

From a historical perspective, a great deal of the work in the customer

satisfaction area began in the 1970’s when consumerism was on the rise. The rise
of the consumer movement was directly related to the decline in service felt by
many consumers. The decline in customer service and resulting customer
dissatisfaction can be attributed to a number of sources. First, skyrocketing
inflation during this period forced many firms to slash service in the effort to keep
prices down. In some industries, deregulation led to fierce competition among
firms who had never had to compete before. Price competition quickly became the
attempted means of differentiation, and price wars developed. Firms once again
slashed costs associated with customer service to cut operating expenses.

What Is Customer Satisfaction?

“Everyone knows what satisfaction is, until asked to give a definition. Then,
it seems, nobody knows”. This quote from Richard L. Oliver respected expert and
long-time writer and researcher on the topic of customer satisfaction, expresses the
challenge of defining this most basic of customer concepts. Building from
previous definitions, Oliver offers his own formal definition.

46
 Satisfaction is the customer fulfillment response. It is a judgment that a
product or service features, or the product or service itself, provides a pleasurable
level of consumptions fulfillment.

In less technical terms, we interpret this definition to mean that satisfaction is

the customer’s evaluation of a product or service in terms of whether that product
or service has met the customer’s needs and expectations. Failure to meet needs
and expectations is assumed to result in dissatisfaction with the product or service.

What Is Customer Satisfaction And Dissatisfaction?

Although a variety of alternative definitions exist, the most popular

definition of customer satisfaction/dissatisfaction is that it is a comparison of
customer expectations to perceptions regarding the actual service encounter.
Comparing customer expectations with their perceptions is based on what
marketers refer to as the expectancy disconfirmation model. Simply stated, if
customer perceptions meet expectations, the expectations are said to be confirmed,
and the customer is satisfied. If perceptions and expectations are not equal, then
the expectations is said to be disconfirmed.

Every day, consumers utilize the disconfirmation paradigm by comparing

their expectations with perceptions. While dining at resort restaurant on the west
coast of Florida, our waiter not only provided everything we requested but also
was very good at anticipating needs. My three-year-old niece had had enough fun
and sun for the day and was very tired. She crawled up into a vacant booth located
directly behind our table and went to sleep. The waiter, noticing her absence from
particular incident combined with other incidents throughout the evening the
notion that with so much poor service all around, customers really do notice when
the service is excellent.

47
The Benefits of Customer Satisfaction

Although some may argue that customer is unreasonable at times, little

evidence can be found of extravagant customer expectations. Consequently,
satisfying customers is not an impossible task. In fact, meeting and exceeding
customer expectations may reap several valuable benefits for the firm. Positive
word-of –mouth generated from existing customers often translates into more new
customers.

Companies who command high customer satisfaction ratings also seem to

have the ability to insulate themselves from competitive pressures, particularly
price competition. Customers are often willing to pay more and stay with a firm
that meets their needs than to take the risk associated with moving to a lower-
priced service offering. Finally, firms that pride themselves on their customer
satisfaction efforts generally provide better environments in which to work.
Within these positive work environments, organizational cultures develop where
employees are challenged to perform and rewarded for their efforts. For example
of the types of attributes that are key in building great corporate reputations and
the companies that excel at particular key attributes. In and of themselves,
customer satisfaction surveys also provide several worthwhile benefits. Such
surveys provide a formal means of customer feedback to the firm, which may
identify existing and potential problems. Satisfaction surveys also convey the
message to customers that the firm cares about their well-being and values
customer input concerning its operations. However, the placement of customer
feedback forms by some companies makes customers wonder if they really want
the feedback.

Other benefits are derived directly from the results of satisfaction

surveys. Satisfaction results are often utilized in evaluating employee performance
for merit and compensation reviews and for sales management purposes, such as

48
the development of sales training programs. Survey results are also useful for
comparison purposes to determine how the firm stacks up against the competition.
When ratings are favorable, many firms utilize the results in their corporate
advertising.

Company’s primary task is “to create customers.” But today’s customers face a
vast array of product and brand choices, prices, and suppliers. We believe that
customers estimate which offer will deliver the most value. Customer are value-
maximizes, within the bounds of search costs and limited knowledge, mobility,
and income. They form an expectation of value and act on it. Then they learn
whether the offer lived up to the value expectation and this affects their
satisfaction and their repurchase probability.

CUSTOMER VALUE

Customer delivered value is the difference between total customer value

and total customer cost. And total customer value is the bundle of benefits
customers expects from a given product or service.

CUSTOMER SATISFACTION

Satisfaction is the level of a person’s felt state resulting from comparing a

product’s perceived performance in relation to the person’s expectations. The
satisfaction level is a function of the difference between perceived performance
and expectations. A customer could experience one of three broad levels of
satisfaction. If the performance falls short of expectation, the customer is
dissatisfied. If the performance matches the expectations, the customer is satisfied.
If the performance exceeds expectations, the customer is highly satisfied, pleased,
or delighted.

Companies are aiming high because customers who are just satisfied will
still find it easy to switch suppliers when a better offer comes along. In one

49
consumer packaged-goods category, 44% of those reporting satisfaction
subsequently switched brands. Those who are high satisfied are much less ready to
switch. One study showed that 75% of Toyota buyers were highly satisfied and
about 75% said they intended to buy a Toyota again. The fact is that high
satisfaction or delight creates an emotional affinity with the brand, not just a
rational preference, and this creates high customer loyalty.

The challenge is to create a company culture such that everyone within the
company aims to delight the customer. Unisys, the computer company, recently
introduced the term “customaries” in its ads, and defined it as follows: “To make a
company more responsive to its customers and better able to attract new ones.”
Unisys sees this as a matter of extending information’s system capabilities to field
locations and other points of customer contact and support. But “customizing” a
company calls for more than providing good information to customer contact
employees. Ultimately it may require linking staff pay to customer satisfaction.
The company’s staffs must be “converted” to practicing a strong customer
orientation.

Body Shop, wisely observes:”Our people(employees) are my first line of

customers. Companies seeking to win to today’s markets must track their
customers expectations, perceived company performance, and customer
satisfaction. They need to monitor this for their competitors as well consider the
following.

For customer-centered companies, customer satisfaction is both a goal and

a marketing tool. Companies that achieve high customer satisfaction rating make
sure that their target market knows it. Although the customer-centered firm seeks
to create high customer satisfaction, it is not out to maximize customer
satisfaction. First, the company can increase customer satisfaction by lowering its
price or increasing its services, but this may result in lower profits.

50
 Second, the company might be able to increase its profitability in other
ways, such as by improving its manufacturing or investing more in R&D. Third,
the company has many stakeholders including employees, dealers, suppliers, and
stockholders.

Spending more to increase customer satisfaction would divert funds from

increasing the satisfaction of other “partners.’

Ultimately, the company must operate on the philosophy that it is trying to

deliver a high level of customer satisfaction subject to delivering at least
acceptable levels of satisfaction to the other stakeholders within the constraints of
its total resources.

METHODS OF MEASURING CUSTOMER SATISFACTION

A company’s tools for tracking and measuring customer satisfaction range

from the primitive to the sophisticated. Companies use the following methods to
measure how much customer satisfaction they are creating.

COMPLAINT AND SUGGESTION SYSTEMS

A customer- centered organization would make it easy for its customers to

deliver suggestions and complaints. Many restaurants and bottles provide forms
for guests to report their like and dislikes. A hospital could place suggestion boxes
in the corridors, supply comment cards to existing patients, and hire a patient
advocate to handle patient grievances.

Some customer-centered companies— P&g, general Electric, Whirlpool- establish

“customer hot lines” to maximize the ease with customers can inquire, make
suggestions or complain.

51
CUSTOMER SATISFACTION SURVEYS

A company must not conclude that it can get a full picture of customer
satisfaction and is satisfaction by simply running a complaint and suggestion
system. Studies show that customers are dissatisfied with one out of every four
purchases and less than 5% of dissatisfied customers will complain. Customers
may feel that their complaints are minor, or that they willl be made to feel stupid,
or that no remedy will be offered. Most customers will buy less or switch suppliers
rather than complain. The result is that the company has needlessly lost customers .

GHOST SHOPPING

Another useful way to gather a picture of customer satisfaction is to hire

persons to pose as potential buyers to report their findings on strong and weak
points they experienced in buying the company’s and competitor’s products.
These ghost shoppers can even pose certain problems to test whether the
company’s sales personnel handle to situation well

LOST CUSTOMER ANALYSIS

Companies should contact customers who have stopped buying or who

have switched to another suppler to learn why this happened. When IBM loses a
customer, they mount a thorough effort to learn where they failed is their price too
thigh, their service deficient, their products unreliable, and so on. Not only is it
important to conduct exist interviews but also to monitor the customer loss rate,
which if it is increasing, clearly indicates that the company is failing to satisfy its
customers.

SOME CAUTIONS IN MEASURING CUSTOMERS SATISFACTION

When customers rate their satisfaction with an element of the company’s

performance, say delivery, we need to recognize that customers will vary in how

52
they define good delivery.” It could mean Early delivery, on-time delivery, order
competences, and so on. Yet if the company had to spell out every element in
detail, customers would face a huge questionnaire. We must also recognize that
two customers can report being “highly satisfied” for different reasons. One may
be easily satisfied most of the time and the other mighty he hard to please but was
pleased on this occasion.

OBSERVATION ON CUSTOMER SATISFACTION

Customer satisfaction will be lower in industries where the industry offers a

homogeneous product to a heterogeneous market. On the other hand, industries
that supply a high-quality homogenous product to a homo generous market will
register high satisfaction. Customer satisfaction is lower in industries where repeat
buyers face high switching costs. They have to buy from the supplier even though
their satisfaction is low. Industries which depend upon repeat business generally
create a higher level of customer satisfaction. As a company increases its market
share, customer satisfaction can fall. This is because more customers with
heterogeneous demands are drawn into buying a fairly homogeneous product.

DELIVERING CUSTOMER VALUE AND SATISFACTION

Given the importance of customer value and satisfaction, what does it take
to produce and deliver it? To answer this, we need to introduce the concepts of a
value chain and value-delivery systems.

VALUE CHAIN

New product realization process: all the activities involved in identifying,

researching, developing, and successfully laughing new products with speed, high
quality, and target cost attainment.

53
 Inventory management process: at the activities involved in developing and
managing the right inventory locations of raw materials, semi finished materials,
and finished goods so that adequate supplies are available while avoiding the costs
of high overstocks.

Order-to-remittance process: all the activities involved in receiving orders,

approving them shipping the foods on theme, and collecting payment. Customer
service process: all the activities involved in receiving orders, approving them,
shipping the goods on time, and collecting payment.

Customer service process: all the activities involved in making it easy for
customers to reach the right parties within the company and receive quick and
satisfactory service, answers, and resolutions of problems.

RETAINING CUSTOMERS

Companies are not only seeking to improve their relations with their
partners in the supply chain. Today they are intent on developing stronger bonds
and loyalty with their ultimate customers. In the past, many alternative suppliers,
or the other suppliers were just as deficient in quality and service, or the market
was growing so facts that the company did not worry about fully satisfying its
customers. The company could lose100 customers a week and gain another 100
customers and a\consider its sales to satisfactory.

THE NEED FOR CUSTOMER RETENTION

Today’s companies are going all out to retain their customers. They are
struck by the fact that the cost of attracting a new customer may be five times the
cost of keeping a current customer happy. offensive marketing typically costs
more than defensive marketing because it requires much effort and cost to induce
satisfied customers to switch away from their current suppliers.

54
CUSTOMER RELATIONSHIP MARKETING: THE KEY

Basic: The salesperson sells the product but does not contact the customer again.

Reactive: The salesperson sells the product and encourages the customer to call if
he or she has any questions or complaints.

Accountable: The sales person phones the customers\ a short time after the sales to
check whether the product is meeting the customers’ expectations. The sales
person also solicits from the customer any product improvement suggestions and
any specific disappointments. This information helps the company continuously
improve its offering.

Productive: the company salesperson phones the customer from time to time with
suggestions about improved product use or helpful new products.

Partnership: The Company works continuously with the customer to discover to

discover ways to effect customer saving or help the customer perform better.

STRATEGIES FOR BUILDING CUSTOMER LOYALTY:

FREQUENCY MARKETING PROGRAMS AND CLUBS:

As companies move from a transaction-oriented view of their customers to

a relationship-buildings views, they will create and sponsor programs to keep their
customers coming back, buying more, and staying loyal.

FREQUENCY MARKETING PROGRAMS:

Frequency marketing programs (FMP) are designed to provide rewards to

customers who buy frequently and/or in substantial amounts.

55
CLUB MARKETING PROGRAMS:

Many companies have created club concepts around their product. Club
membership may be offered automatically upon purchase or promised purchase of
a certain amount, or by paying a fee.

Today’s customers face growing range of choice in the products and

services they can buy. They are making their choice on the basis of their
perceptions of quality service, and value. Companies need to understand the
determinants of customer value and satisfaction.

Customer-delivered value is the difference between total customer value and total
customer cost. Customers will normally choose the offer that maximizes the
delivered value.

Customer satisfaction is the outcome felt by buyers who have experienced a

company performance that has fulfilled expectations.

Customers are satisfied when their expectations. Customers are satisfied

when their expectations are met and delighted when their expectations are
exceeded. Satisfied customers remain loyal longer buy more, are less price
sensitive, and talk favorably about the company.

To create customer satisfaction, companies must manage their value chain

as well as the whole value-delivery systems in a customer-centered way. The
company’s goal is not only to get customers but even more importantly, to retain
customers. Customer’s relationship marketing and social benefits as well as
structural ties to the customer. Companies must decide how much relationship
marketing to invest in different market segments and individual customers, from
such levels as basic, reactive, accountable, proactive, to full partnership. Much
depends on estimating customer lifetime value against the cost stream required.

56
 Total quality management is seen today as a major approach to providing
customer satisfaction and company profitability. Companies must understand how
their customers perceive quality and how much quality they expect. Companies
must then strive to offer relatively higher quality than their competitors. This
involves total management and employee commitment as well as measurement
and reward systems

Marketers play an especially critical role in their company’s drive towards

higher quality.

57
 CHAPTER – IV

DATA ANALYSIS AND

INTERPRETATION

58
ANALYSIS OF “A STUDY ON CUSTOMER SATISFACTION TOWARDS

PIONEER TVS MOTORS PVT.LTD”, GUNTUR.

Analytical Customer Satisfaction analyzes customer data for a variety of

purposes:

 Design and execution of targeted marketing campaigns to optimize

marketing effectiveness

 Design and execution of specific customer campaigns, including customer

acquisition, cross-selling, up-selling, retention

 Analysis of customer behavior to aid product and service decision making

(e.g. pricing, new product development etc.)

 Management decisions, e.g. financial forecasting and customer profitability

analysis

 Prediction of the probability of customer defection (churn analysis)

59
Analyzed survey report:

 DISTRIBUTION OF RESPONDENTS BASED ON AGE:

TABLE 5.1

DISTRIBUTION OF RESPONDENTS BASED ON AGE

Age of the customer No of customers

18-25 55

25-30 20

30-40 15

40above 10

60
 FIGURE 5.1

60 55
50
No. of customers
40
30
20
20 15
10
10
0
Age of the customer

18-25 25-30 30-40 40above

Interpretation:

The above table shows out of 100 Respondents, 55 respondents are Belongs to 18-
25 Age-group, 20 Respondents are Belongs to 25-30 Age-group, 15 respondents
are Belongs to 30-40 Age-group, and 10 are Belongs to above 40 age-group. 55%
of the respondents are belongs to 18-25 Age-Group, using tvs star city.

61
 DISTRIBUTION OF RESPONDENTS BASED ON EDUCATION:

TABLE 5.2

DISTRIBUTION OF RESPONDENTS BASED ON EDUCATION

Qualification of the customer No of customers

Non-Graduate 16

Graduation 29

Post Graduate 35

Post graduation professional 20

62
 FIGURE 5.2

35
30
Non-Graduate
25
No of customers

20 Graduation
15
Post Graduate
10
5 Post graduation
professional
0
Qualification of customers

Interpretation: The above table shows out of 100 respondents, non- Graduates
are using 16%, Graduates are using 29%, Post-Graduates Are using 35%, and post
graduate professionals are using 20%. Most of the respondents are Post-graduates
with 35%.

63
 DISTRIBUTION OF RESPONDENTS BASED ON OCCUPATION

TABLE 5.3

DISTRIBUTION OF RESPONDENTS BASED ON

OCCUPATION

Occupation of the customer No of customers

Student 34

Employee 42

Self Employee 24

64
 FIGURE 5.3

45 42
40
34
35
No. of customers

30
24
25
20
15
10
5
0
Occupation of customer

Student Employee Self Employee

Interpretation: From this question we come to know that many customers of the
tvs star city are employees. Next comes to the students. This question is framed to
know the major segment of customers for the tvs star city.

65
 DISTRIBUTION OF RESPONDENTS BASED ON INCOME LEVEL

TABLE 5.4

DISTRIBUTION OF RESPONDENTS BASED ON INCOME

LEVEL

Income level of the customer No of customers

5000-10,000 37

10,000-15,000 32

15,000-20,000 22

20,000above 9

66
 FIGURE 5.4

40 37
35 32
30
No. of customers

25 22 5000-10,000
20 10,000-15,000
15 15,000-20,000
10 9 20,000above
5
0
Income level of customers

Interpretation: This question is meant to know the income level and economic
status of the customers who are purchasing the tvs star city, From the analysis
of the above data we come to know that majority of the customers lay between
5,000-10,000 earning income group.

67
 DISTRIBUTION OF RESPONDENTS BASED ON TIME PERIOD

TABLE 5.5

DISTRIBUTION OF RESPONDENTS BASED ON TIME

PERIOD

Time period No. of customers

Below 6 months 25

6-1 years 22

1-2 years 30

Above 2 years 23

68
 FIGURE 5.5

30
30

25 25
23
22
No. of customers

20

15

10

0
time period

Below 6 months 6-1 years 1-2 years Above 2 years

Interpretation: From the above analysis we come to know that most of the
customers have purchased the bike Passion plus before 1-2 years. From this we
can know how well the promotional strategies from the past 1year are.

69
 DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER
RESPONCE

TABLE 5.6

DISTRIBUTION OF RESPONDENTS BASED ON

CUSTOMER RESPONCE

Customers reply No of customers

Yes 60

No 40

70
 FIGURE 5.6

customer response

yes
no
no, 40

yes, 60

Interpretation: The above table shows out of 100 Respondents, 60% respondents
had the bike before this bike and 40% respondents don’t had any bike before this
bike. Most of the respondents had the bike before this bike with 60%.

71
 DISTRIBUTION OF RESPONDENTS BASED ON TYPE OF TWO
WHEELER

TABLE 5.7

DISTRIBUTION OF RESPONDENTS BASED ON TYPE OF TWO

WHEELER

Type of vehicle No. of customers

Moped 15

Scooter 20

Bike 25

72
 FIGURE 5.7

25
25
20
20
No. of customers

15
15

10

0
type of two wheeler

Moped Scooter bike

Interpretation: from the above analysis we come to know the customers earlier
usage of vehicle. Most of the customers used the bikes before purchasing this
bike. More than 25% of the customers used to have only bikes earlier.

73
 DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER
PREFERENCE

TABLE 5.8

DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER

PREFERENCE

Customer Opinion No. of customers

Technology 8

Style, look 14

Mileage 18

After sale service 3

Brand image 9

Comfort 8

74
 FIGURE 5.8

Technology
20
18
No. of customers
15 Style, look
14

10 Mileage
8 9
8
5 After sale
3
service
0
Brand image
customer preference
Comfort

Interpretation: This question is meant to know the customers preference and their
likes for shifting to tvs star city. Most of the customers who are using the tvs star
city and preferred to tvs star city only because of its mileage.

75
 DISTRIBUTION OF RESPONDENTS BASED ON INFLUENCING
FACTORS

TABLE 5.9

DISTRIBUTION OF RESPONDENTS BASED ON

INFLUENCING FACTORS

Influencing factors No. of customers

TV ads 26

Paper ads 16

Friends 55

Any others 3

76
 FIGURE 5.9

60
55
50
No. of customers

40

30
26

20 16

10
3
0
influencing factors

TV ads Paper ads Friends Any others

Interpretation: This question is meant to know the source of awareness for

customers regarding the bike. Most of the customers of tvs star city came to know
about the bike through friends and relatives.

77
 DISTRIBUTION OF RESPONDENTS BASED ON BIKE CONSIDERED
BY CUSTOMERS

TABLE 5.10

DISTRIBUTION OF RESPONDENTS BASED ON BIKE

CONSIDERED BY CUSTOMERS

Bike considered by customers No. of customers

Bajaj Pulsar 42

Passion plus 12

Honda Shine 12

Any other 34

78
 FIGURE 5.10

45 42
40
35 34
No. of customers

30 Bajaj Pulsar
25 TVS Apache
20
Honda Shine
15 12 12
Any other
10
5
0
name of the bike

Interpretation: The tough competitors for the tvs star city in the market are
known from the above question. Most of the customers considered Bajaj pulsar,
while purchasing the tvs star city.

79
 DISTRIBUTION OF RESPONDENTS BASED ON PRODUCT
PERFORMANCE

TABLE 5.11

DISTRIBUTION OF RESPONDENTS BASED ON

PRODUCT PERFORMANCE

Customers response No. of customers

Yes 82

No 18

80
 FIGURE 5.11

product performance
yes
82%

no
18%

yes no

Interpretation: We can know whether the customer is satisfied or not with the
performance of the bike from the above question. Majority of the customers i.e.
more than 82% of the customers are very much satisfied with the performance of
the tvs star city.

81
 DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER
RESPONCE

TABLE 5.12

DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER

RESPONCE

Extremely Satisfied Some Not

satisfied what satisfied
satisfied

Politeness and 26 65 8 1
Courtesy

Attention to answer 33 55 9 3
Your queries

Timeliness (i.e. repair 20 54 20 6

to the Bike were done
very prompt)

Dependability (i.e. any 15 53 23 9

query and complaint
regarding to Repairs
would be taken care
of)

82
 FIGURE 5.12

70
65
60
55
54 53
50
No. of customers

Politene ss and C ourte sy

40
33 Attention to answer Your
30 26 queries
23 Timeliness
20 20 20
15 Dependable
9
10 8 9
6
3
1
0
extremely satisfie d some what not
satisfied satisfie d satisfied
Custome rs re sponse

Interpretation: From the analysis we come to know that most of the customers are
satisfied with the various aspects of the after sale service. And only very few
customers infer that they are not satisfied with the aspects of after sale service.

83
 DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER
REACTION

TABLE 5.13

DISTRIBUTION OF RESPONDENTS BASED ON

CUSTOMER REACTION

Customers response No. of customers

Extremely satisfied 28

Satisfied 60

Some what satisfied 9

Not satisfied 3

84
 FIGURE 5.13

60
60

50 Extremely
No of customers

satisfied
40
Satisfied
30 28

20 Some what
satisfied
10 9
Not satisfied
3
0
customer reaction

Interpretation: The service quality of the dealer is known from the question.
Most of the customers are satisfied with after sale service, only a very few
customers infer that they are not satisfied with the after sale service.

85
 DISTRIBUTION OF RESPONDENTS BASED ON OFFERS

TABLE 5.14

DISTRIBUTION OF RESPONDENTS BASED ON OFFERS

Offers No. of customers

Surprise gift (during special 38

occasion)

Extend free service period time 42

Toll free number (for emergency) 15

Any other 5

86
 FIGURE 5.14

45 Surprise gift
42
40 38 (during special
35 occassion)
No. of customers

30 Extend free
25 service period
time
20
15 15 Toll free number
(for emergency)
10
5 5
Any other
0

Offers

Interpretation: Most of the customers expect for extension in the free service
period given by the dealer. From this question we come to know the most
favorite offer liked by the customers.

87
 DISTRIBUTION OF RESPONDENTS BASED ON CUSTOMER
RESPONCE

TABLE 5.15

DISTRIBUTION OF RESPONDENTS BASED ON

CUSTOMER RESPONSE

Customer response No. of customers

Yes 92

No 8

88
 FIGURE 5.15

customer response

Yes, 92

Yes
No

No, 8

Interpretation: Most of the customers inform that they suggest the Passion
plus to their friends and relatives. From this we come to know how buzz
marketing or word of mouth helps in promoting the product in the market.

89
 CHAPTER – V

FINDINGS, SUGGESTIONS &

CONCLUSION

90
 SUMMARY OF FINDINGS AND SUGGESTIONS

FINDINGS

As a result of the research work and the subsequent interaction with

the consumers in the market an in-depth study report of motorcycle market was
made. The study reveals the exact position of motorcycle companies and response
of consumers to their perception tool. Market condition could be observed
minutely and closely enabling me to formulate my views and opinion about the
market.

The major observations and findings:-

1. More than 55%of the respondents felt the ownership of Motor cycle as
necessity, while 20% of them felt it is as comfort. 15% of the respondents
felt it is as luxury and 10% of respondents felt it is as status.

2. 49%of the respondents were satisfied with the after sales service of tvs,
while 44% felt it as good, 5%as bad and2% as excellent

3. 60%of the respondents felt that the price of tvs as economical, while 9%of
them felt it as expensive and 31% of them felt that the price as moderate.

4. When asked about the opinion on Hero Honda motorcycles advertisement

26% have not seen the advertisement, while 16% have seen the
advertisement and gave their opinion as 55% as excellent, 3%as very good
and 30%as ok.

91
5. There are many criteria’s considered by customers while choosing the
motorcycle company or particular model. Here I found, 38%customers
considered mileage factor while selecting any variety.

6. Customers have right to expect from company. 32% customers expect long
service from the company.

7. Without proper motivation no one will buy the particular motor cycle it is
found that 23% customers affected by work of mouth, 16% by sales man,
54% by reliability and 07% by dealers.

8. It is observed that tvs is a market leader in motorcycle industry.

92
SUGGESTIONS

 Please upgrade the 100cc Passion plus bike to 125cc bike and also

introduce the bike in to market with a self starter engine.

 Pick up should be increased to all bikes, especially in tvs star city.

 Weight of new tvs star city 2008 is very low, it should be increased.

 Compared to the old Passion plus model the new models labels and colors

are not good. It must be rectified.

 The new tvs star city launched into the market is of old style and old model,

so please upgrade the bike with new look and style.

For servicing:

 Mechanics should call back the customers if they find any problems in the

vehicle during servicing.

 The service men are using the customer’s bikes for their own purpose when

the customer gives the bikes to the service. This must not be done by them;

management should take proper steps to avoid this kind of actions.

 The service men at the authorized dealers are unable to take care of the bike

and they are unable to resolve the queries and the problems told by the

customers regarding the bikes.

93
 CONCLUSION
It is important for the company to maintain the qualitative seeds as
per the standards because the company’s success majority depends on this
factor. Most of the customers prefer the company for its quality
maintenance. The company has to maintain the customer base to improve
its sales and also it has to promote its products. The company has chance
for diversifying its activities as it having a good demand in the market. The
company has to improve the social activities, as this increases the value of
the organization in the minds of the customers as well as in the society.

94
QUESTIONNAIRE

95
 QUESTIONNAIRE

Respondent’s profile:

a) name :
b) Address:
c) Phone No:

Gender: a) male b) female

1. Age:
2. a) 18-25 b) 25-30 c) 30-40 d) 40above

3. Education:
a) Non-Graduate b) Graduation

c) Post Graduation d) Post graduation Professional

4. Occupation:
a) Student b) Employee c) Self Employee

5. Income level:
a) 5000-10,000 b) 10,000-15,000

c) 15,000-20,000 d) 20,000above

96
6. Please tell me when did you purchase your bike ?
a) Below 6months b) 6-1years

c) 1-2years d) above 2years

7. Do you have any other two wheelers before this bike?

a) Yes b) No If no go to 11Q

8. Which type of two wheeler you have before this?

a) Moped b) Scooter c) Bike

9. Could you please tell me why you shifted from………. To tvs star city?
a) Technology b) Style, look c) Mileage

10. By which factor you have influenced to purchase tvs star city?
a) TV ads b) Paper ads

c) Friends d) any other_________

11. While purchasing tvs star city which other brands you have taken into
consideration?
a) Bajaj Pulsar b) hero Honda passion+

c) Honda Shine d) any other___________

97
12. Is your selected product performance met your expectations?
a) Yes b) No

13. How would you rate your satisfaction about after sale services?
Extremely Satisfied Some what Not
satisfied satisfied satisfied

Politeness and Courtesy

Attention to answer Your

queries

Timeliness (i.e. repair to

the Bike were done very
prompt)

Dependability (i.e. any

query and complaint
regarding to Repairs
would be taken care of)

14. How would you rate your overall satisfaction about after sales services?
a) Extremely satisfied b) Satisfied

c) Some what satisfied d) not satisfied

98
15. To attract the customer what sales promotion techniques are offered by the
dealer?
a) Surprise gift (during special occasion)
b) Extend free service period time
c) Toll free number (for emergency)
d) Any other_______________

16. Would you like to suggest the same product to others?

a) Yes b) No

17. Any suggestions you would like to TVS bikes ?

99
BIBLIOGRAPHY

100
 B IB L IO G R A P H Y

A) REFERENCE BOOKS:

PRINCIPLES OF MARKETING KOTLER, ARMSTRONG

MARKETING RESEARCH G.C.BERRY

B) AUTOMAGAZINES:

OVERDRIVE

C) NEWS PAPERS:

THE TIMES OF INDIA

THE HINDU

D) WEBSITES:

www.tvsmotors.com

www.wikipedia.com

101