Customer awareness about PIAGGIO APE Vehicles, Olikara Showroom, Shimoga

CONTENTS 1. Introduction 2. Company Profile 3. Product Profile 4. Survey Analysis and Interpretation 5. Findings, Suggestions and Conclusion Annexure Questionnaire Bibliography

Synopsis
Chapter 1 INTRODUCTION Introduction Literature Review Statement of the problem Purpose of the study Scope of the study Objectives of the study Chapter 2 Company Profile Organization profile Organization chart About Piaggio company Sampling Research design Data collection methods Measuring tools Chapter 3 PRODUCT PROFILE Brands and models Competitor Analysis Present and Future Milestones of Piaggio Chapter 4 Survey Analysis and Interpretation Chapter 5 Findings, Suggestions and Conclusion Annexure Questionnaire Bibliography Customer awareness About PIAGGIO APE Vehicles, A case study of Olikara Showroom, Shimoga

Chapter 1 INTRODUCTION Introduction Literature Review Statement of the problem Purpose of the study Scope of the study Objectives of the study Methodology

Introduction

This project report containing the marketing research on market potential and customer awareness of PIAGGIO APE vehicles at Olikara showroom in Shimoga. I have chosen this topic concern to their requirement as the Olikara showroom. PIAGGIO is one of the biggest company in the world not only producing and selling vehicles and now they are concentrating to target the domestic market and they trying to know how much is the domestic market and local people are aware of their APE brand and how they have opinion regarding the brand. So in simple the need is to know the awareness level and potential customer about the PIAGGIO APE vehicles. My basic intention is to make the customers make aware of APE brand of PIAGGIO and also know who are the potential customers and their perception and satisfaction in the market of APE brands. The sample size for this study is 100 respondents and the structured questionnaire was used to collect information from respondents.

Literature Review

Definition of potential The maximum sales reasonably attainable under a given set of conditions within a specific period of time (i.e. what you might could or achieve) Overview It is hard estimate the upper limit or maximum of sales. In addition although managers may perceive potential as a fixed number It is in fact dynamic and can change dramatically over time. The key to understanding this point is the clause Under a given set of conditions within specific period of time. In other words market or sales potential change depending on market factors search as average category price or general economic condition.

What they are used for: They are five major uses of potential estimates To make entry or exit decision To make resource level decision To make location and other resource allocation decision To set objectives evaluate performance As an input to forecast
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New or growing product potential In considering both the saturation level and the time pattern of market development, it is useful to compare the product to its major competitors. This can be accomplished by considering three major dimensions. Relative advantage Compatibility Risk Customer Awareness The awareness refers to the attributes the consumer knows the about the product. Awareness status young compasses the notion of consumer awareness, interest level or buyer readiness. Marketers have to determine whether potential customer are aware of the products, interested in the product or need to be informed about the product. Consumers tend to make purchasing decision based on peer recommendations and direct experiences, as well as traditional advertising methods. This why it is necessary to build brand awareness strategies out by instilling trust among consumer. This trust must be achieved through creditability rather than just a catchy advertising

campaign. Promotion marketing involving a one to one component is proving increasing effective at building trust and acquiring new customers. Management problem Management wants to know the awareness level of customers towards Piaggio vehicles. Most of the customers are not aware of

PIAGGIO APE vehicles in Shimoga and Management want know the potential customers for their vehicles. Research problem To find out and study the market potential and customer awareness towards PIAGGIO APE vehicles in Shimoga.

Purpose of the study The purpose of the study is to know the market potential and customer awareness of PIAGGIO APE vehicles in the minds of the customer and change in buying behavior can be estimated by the study. The marketing study can be designed in accordance with this change. It will be helpful for the managers to make decisions hence this study should be conducted.

Scope of the study The main important purpose of the study is to know the market potential and customer awareness level of PIAGGIO APE vehicles and also like to know the factors influences the purchasing of the vehicles. The study will help the company it can find out where there competitors stand and also it help to know the customer profile. The study covers the customers who are vehicle users in Shimoga city.

Objectives if study 1) To find out the level of customer awareness about PIAGGIO vehicles 2) To know what customers exactly expect from the PIAGGIO APE vehicles at Olikara showroom. 3) To study the market potential for PIAGGIO APE vehicles. 4) To know the factors determining consumer buying behavior. Methodology Sampling method Sampling

A sampling process is a definite plan for obtaining a sample from the population it refers to the technique adopted in selected items for the sample. Sampling Unit It consists of customer of potential and existing three wheeler owners in Shimoga city. Sampling Size: The sample size is 100 customers. Sampling Technique method The study is conducted by random convenient sampling techniques for the purpose of assuring the sample size. Research Design A research design is the arrangement of conditions for collection and analysis of data in a manner. In simple it is a systematic way to solve the research problem and it is an important component for the study without which researchers may not be able to obtain the facts and figures from the customers. Data Collection Methods The methodology adopted for the study is as follows.

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Sources of data Primary data Secondary data Methods of collecting primary data Questionnaires Methods of collecting secondary data Company manuals Previous reports Related information( company websites) The questionnaires were personally given to each respondent. Because of these questionnaires much helpful in factors such as obtaining choices and helping respondents to understand the significance and answer to their reliability.

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Chapter 2

Company Profile
Organization profile Organization chart About Piaggio company Sampling Research design Data collection methods Measuring tools

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Organization Profile Introduction to the organization Olikara is an authorized dealer for piaggio ape for marketing, sales, accessories service and repairs of ape range of vehicles Olikara motors started its operations in 1985 at Shimoga have a well equipped workshop with all infrastructure facilities. The workshop is well supported by an organized spare parts division. The dealership includes departments which are controlled by respected heads having well experienced and dynamic personalities. Name: Olikara Showroom Location: Shankar Mutt Road Shimoga

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Organization Chart

O ffi ce st af f

E xe cu ti ve s

Departments There are four departments in Olikara motors. 1) Sales 2) Finance 3) Services 4) Spare parts and works No. of employees Total no. of employees in organization is 25

A cc ou nt s

S pa re pa rts an d w or ks

Sa le s m an ag er

G en er al M an ag er

B oa rd of di re ct or s

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History of Piaggio

Rinaldo Piaggio founded Piaggio in Genoa in 1884. The company was based at Sestri Ponente and produced ship fittings. In a few years the young Rinaldo had expanded into railway fittings and aeronautics and opened a new factory at Finale Ligure. The next step was the establishment of Piaggio in Tuscany. Factories were set up in Pisa in 1917 and in Pontedera in 1924. By World War II the company was one of the most important European aeronautics, railway, steamship and transatlantic liner manufacturers. Renaldos son Enrico envisaged and produced the Vespa in 1946. It was the vehicle that symbolized post-war reconstruction in Italy. In 1948 the Ape was produced and delineated the success of the goods

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transport sector. Vespa and Ape were a splendid binomial that characterized the post-war years of Italian and world reconstruction. In the mid-seventies Piaggio made the moped a success. Ciao, Bravo and S were some of the models in this line of light, elegant vehicles that conquered the young. Vision To be the no 1 and the most profitable global player with world class quality and technology leadership in the 3 wheeler vehicles category offering transportation solutions for specific customer needs. To be perceived as a unique, high, impact, fast response, innovative, and growth oriented company which is known around the word for its unmatched level of excellence Mission To become a market leader the 3 wheeler vehicles segment, and achieve the states of a world class company which manufactures and markets a wide range of a high quality products to the total satisfaction of customer in the domestic overseas market by ensuring. 1. Low cost of manufacture 2. High profitable growth

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3 Sustainable domestic and global compositeness 4. Maximized stake holders satisfaction and pride Through a continuous improvement of process focused on 1. Total quality 2. Resource productivity 3. Technology 4. Cost effectiveness And by creating an interactive professional environment of trust, openness self confidence and commitment which encourages team effort, employee empowerment and career progression. Features of PIAGGIO Ape vehicle Great mileage and performance More load ability State of the art technology Lowest operating costs Unbeatable service Super safety Great driving comfort Elegant good looks Italian styling
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 Easy customization

What makes Piaggio ape the worlds no 1 Only international 3 wheeler Proven superior design and technology of Piaggio the inventor of 3 wheelers World class customer service and care New initiatives In December 2005 Piaggio launched the ape privilege scheme an exclusive extended warranty insurance coverage for ape 1.0 toner through a collaborative endeavor of United India insurance CO Ltd and ape authorized dealers Under this scheme customers were given an additional warranty of 12 months over the primary of 8 months at a nominal cost of RS 999/-.the scheme is applicable for all models of the ape 1.0 tonner. Awards Rotary fair 2004 award Conquerors meet award 2005 New arrivals 1.0 tonner pick up van
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 1.3 tonner delivery van 6 seater taxi

Dealer location Today Piaggio vehicle covers more than 250 dealer locations providing 420 outlets for sales and service across the country. This is perhaps one of the largest and best organized distribution networks for three wheeler in India.

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Chapter 3 PRODUCT PROFILE

Brands and models Competitor Analysis

Present and Future

Milestones of Piaggio

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PRODUCT PROFILE Introduction of Ape Piaggio launches Ape Pune-based Piaggio Vehicles, the Indian arm of Italian auto major Piaggio Italy, has launched its 1.3-tonne three-wheeler 'Ape'. A 2hp cargo vehicle with a 800-kg payload, the vehicle is expected to be priced at around Rs1.80 lakh. Ape conforms to Euro I emission norms required for cargo vehicles (unlike Euro II for passenger cars) and by April 2005 it will adhere to Euro II norms as well. Piaggio also plans to launch Ape with alternate fuels like CNG, LPG and diesel. Within the Indian 3-wheeler market, the Passenger vehicle segment (3 and 6 seats) reached a total of 177,000 shipments (+23.5%), while demand in the Cargo segmentwhere Piaggio is Indias leading Development. From the Vespa in 1946 to the Beverly in 2001, Piaggio has designed and sold over one hundred scooter models. They are proof of the creativity and entrepreneurial instinct of generations of men and

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women who wrote the history of the company and with it the economic, social and civil history of the territory Piaggio operates in Piaggio Ape a huge hit in India Piaggio sets up in the Indian market to cater for the growing demand for the three wheeled Ape and other Piaggio commercial vehicles. By the way yes they still do make the Ape! Piaggio Press Piaggio Group operations in India are conducted through Piaggio Vehicles Private Ltd. (PVPL), a wholly owned Piaggio subsidiary, which manufacturers Ape diesel-engine 3-wheelers in cargo and passenger transportation models. The PVPL facility, located in Baramati (State of Maharashtra, near Mumbai), covers a total surface area of more than 120,000 m2 (including a covered area of 23,000 m2). The factory has further expanded production capacity by virtue of a success that has made Piaggio the second manufacturer on Indias important 3-wheeler market, with a share of around 33%, and the leading vendor of 3-wheelers for cargo requirements, with a 38% market share.

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PVPL 3-wheeler vehicle shipments rose from approximately 35,000 in 2003 to 70,000 in 2004, and more than 100,000 in 2005. Further significant growth was reported in 2006: from January to September, Piaggio Vehicles Private Ltd. shipped more than 101,000 vehicles and reported revenues of 142 million euro, for sales growth of 40% (on 72,000 shipments in January-September 2005), and revenue growth of +35.8% (104 million euro in the first nine months of 2005). Production of Ape 3-wheelers in Baramati is now flanked by production of the Quargo four-wheeler commercial vehicle, a quadricycle based on the Piaggio Porter commercial minivan, to be known on the Indian market as the Ape Truck. The name capitalizes on the outstanding success of the Ape and emphasizes the 4-wheelers capacity and solidity. Built on a 482 cc liquid-cooled diesel engine, with 5 gears, Ape Truck offers an 800 kg carrying capacity together with automobile-type driver cab and controls for greater user comfort; the vehicle architecture is an advanced 4-wheeler version of the Ape designed for easy handling. The Baramati factory has already installed the chassis

assembly/welding lines and final assembly lines for the new vehicle.

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With an additional potential output of 24,000 vehicles/year for the Ape Truck, Baramati will have an overall installed capacity of more than 150,000 vehicles/year on a two-shift basis. The Piaggio Groups expansion in India is not limited to vehicles but will soon also include engines: on 13 November 2006, the Piaggio & C. S.p.A. Board of Directors approved an important new industrial project in India, for the construction near the city of Pune (State of Maharashtra) of a new facility to produce new small- and mediumcylinder diesel engines. The plant will have a production capacity of 200,000 engines/year and is scheduled to begin operations between the end of 2009 and early 2010. The total investment, over the next three years, has been estimated at this preliminary stage at approximately 6065 million euros. The Piaggio Groups operations in India today include a workforce at PVPL of more than 1,700 employees and a sales and service network comprising over 230 exclusive dealers. The level of demand on the Indian market allows PVPL to work on a zero inventories basis. The Indian 3-wheeler market, where PVPL is a leading player, continues to expand at a healthy rate, with demand rising by 21.2%
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compared with the first 9 months of 2005. From January-September 2006, shipments to end users on the 3-wheeler market exceeded the 300,000 mark (all manufacturers) compared with approximately 250,000 in the year-earlier period. Piaggio was established in September 1882 in Sestri Ponete, Genoa (Italy) by Enrico Piaggio as a timber stockyard with his son Rinaldo. In 1884 Rinaldo left to set up his own business. Piaggio in which he intended to develop an activity in ship outfitting, this however changed in the early 1900's when Rinaldo went into railway coach construction. Around 1916, Piaggio found an interest in aeronautics and built aircraft engines, this however was abandoned after the war and interest turned to personal transport to satisfy a demand for private vehicles. The result was a prototype scooter that was nicknamed "Paperino" (Donald Duck), but Enrico was not happy with it and handed the project over to Corradino D'Ascanio for a complete overhaul. As a result in 1946 the first Vespa appeared! Following the Vespa, 1948 saw the introduction of a new 3-wheeled vehicle; the Ape (pronounced "ahpay") and this vehicle helped commercial activities pick up in Italy after suffering from the war. The Ape continued to be made in basically the

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same form from that date on next to Piaggio's range of two-wheeled scooters. The Ape range is built around a semi-monocoque frame that uses a single load-bearing chassis in sheet-steel and a steel body that houses either one (in some older models) or two seats. The body comes in number of styles including Van, Pick up and Rickshaw. The engine in the Ape is mounted at the rear of the vehicle and comes in numerous forms throughout the World. In general the Ape uses either a 395 cc diesel engine (8bhp) whilst in parts of Europe the Ape is powered by a 422 cc diesel engine. In the UK the Reliant Motor Company are currently importing the Ape 50 that uses a 50cc catalyzed engine with four speed transmission. The Piaggio Ape 50 (Spotted in Santanyi whilst on holiday in Mallorca 2004 the 2000 Ape 50 as an Ice Cream van. (Photo taken at 2000 Motorshow, UK) The Ape 50 also comes in different body forms and also features a number of additional specifications that include, Ice Cream Vending Equipment, Urban Refuse Collection Vehicle, Insulated Van,

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Plumbers/Electricians Equipment and Fish Counter Equipment. The Piaggio Ape is also built in Pune (India) by Bajaj Auto under license from Piaggio with a 150cc engine. Whilst on a recent holiday to Italy I was amazed at the amount of Piaggio 3-wheelers that are on the roads. I saw those crossing fields full of plants, cleaning streets, carrying timber, transporting motorbikes and all sorts. It was great to see. Brands and models Group brands

Aprilia - motorcycles and scooters Derbi - motorcycles, scooters, and recreational ATVs (quads) Gilera - motorcycles Ligier - 4wheel micro automobiles Moto Guzzi - motorcycles Piaggio - scooters Vespa - scooters Laverda - super sports motorcycles

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Piaggio Models

Piaggio Ape 3-wheel sub micro pickups. Piaggio Porter 4-wheel micro-vans and micro-pickups, same as a Daihatsu Hijet.

Piaggio Avanti 180 Piaggio MP3 3-wheel scooter. Piaggio BV500 - neo-classic style, automatic transmission, topspeed 100mph

X9 125/250 cc Evolution - the Evolution models superseded the previous X9 models in 2004, which were fitted with Honda engines Apes applications Fast moving applications 1. Cylinder carrier 2. Soft drink crate carrier 3. Poultry bird /chicken carrier Mobile shop application 1. Mobile ice cream par lour 2. Mobile bakery shops 3. Mobile grocery shops

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4. Mobile catering vehicle 5. Mobile fish retail vehicle Improved utility applications 1. Water tanker 2. Mineral water dispenser 3. Milk tanker 4 Fish carrier Municipal Usage applications 1. Manual tripper 2. Motorised tripper 3. Hydraulic happer 4. Ape jetter/sprayer 5. Dumper placer 6. Tower ladder 7. Hyd elevating platform
8. Stray animal catching van s

The wealth represented by our

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our reputation are sustained. The striving of our employees, both RCES The small delivery truck It can carry up to 170 Kg, shielded and protected in its rear compartment (1.5 m3), fully exploitable and easy to load. Its the ideal solution for frequent deliveries within urban areas thanks to its maneuverability and parking easiness

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The original 100% Ape Its the most popular model of the whole range. Choose it for its consumptions: Ape 50 allows you to travel more than 300 Km with just a full tank.

Available in two versions: - Long rear cargo deck - Short rear cargo deck - Traditional sides - alloy sides Marketing review 23 September 2004 Piaggio had a strong cash flow emanating from the success of the Vespa, and decided to develop other products. In 1957 they produced the Vespa 400, a tiny passenger car. In 1959, Piaggio came under the control of the Agnelli family, the owners of car maker Fiat SpA. Resultantly, as the wider ownership of Fiat in Italian industry, in the 1964 the two divisions (aeronautical and

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motorcycle) split to become two independent companies; the aeronautical division was named IAM Rinaldo Piaggio. Today the airplane-company Piaggio Aero is controlled by the family of Piero Ferrari, who also still holds 10% of the famous car maker Ferrari. In 1969 the motorcycle company purchased Gilera. Under New Ownership In 1959, Piaggio came under the control of the Agnelli family, the owners of car maker Fiat SpA. Vespa thrived, until 1992 when Giovanni Alberto Agnelli became CEO - but Agnelli was already suffering from cancer, and died in 1997. In 1999, Morgan Grenfell Private Equity acquired Piaggio, but a quickly hoped for sale was dashed by a failed joint venture in China. In Italy, Piaggio invested 15 million euros ($19.4 million) in a new motorcycle but dropped it after building a prototype. By the end of 2002, the company had run up 577 million euros in debt on revenues of 945 million euros, and booked a loss of 129 million euros. Then came Roberto Colaninno: A lot of people told me I was crazy. Piaggio wasn't dying. It just needed to be treated better. Piaggio's financial was in a bad shape, but its brand was still well known and its

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product was featuring in more Hollywood films thanks to the Vespa ET4. In 1995, Colaninno had pulled off what was then Europe's largest-ever hostile takeover when he took control of Telecom Italia SpA. In October 2003, Mr. Colaninno made an initial investment of 100 million euros through his holding company Immsi SpA in exchange for just under a third of Piaggio and the mandate to run it. Chief executive Rocco Sabelli, redesigned the factory to Japanese principles, and redesigned the factory so that every Piaggio scooter could be made on any assembly line. Unlike the turnaround recipe applied at U.S. auto makers, Mr. Colaninno didn't fire a single worker - a move which helped seduce the company's skeptical unions. "Everyone in a company is part of the value chain," said Colaninno. All bonuses for blue-collar workers and management were based on the same criteria: profit margins and customer satisfaction; and air conditioning was installed in the factory. He also gave the company's engineers, who had been idled by the company's financial crisis, deadlines for projects - they rolled out two world firsts in 2004: a gas-electric hybrid scooter; a scooter with two wheels in front and one in back which grips the road better.

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One of Piaggio's problems Mr. Colaninno couldn't fix from the inside was its scale. Even though Piaggio was the European market leader, it was dwarfed by rivals Honda and Yamaha. A year after rescuing Piaggio, Colaninno decided to salvage another Italian brand: scooter and motorcycle maker Aprilia. Vendormaintained its previous significant growth rate to reach a total 125

The working Ape parPIAGGIO BENELUX B.V. excellence. Hoevestein 48 4903 SC Oosterhout-NB-NEDERLAND +31 162 44 75 02 ltv@piaggio.nl PIAGGIO HELLAS LTD 259, IMITU str. HELLAS 11631 ATENE +30 21017572100 PIAGGIO LIMITED 1, Boundary Row UNITED KIMGDOM SE1 8HP LONDON +44 2074014300 PIAGGIO FRANCE S.A. 32, rue d'Armaill FRANCE 75017 PARIS +33 (0) 158053860 PIAGGIO ESPAA S.A. ESPAA Calle Rosario Pino, 14-16 Edificio Rioja PIAGGIO DEUTSCHLAND GMBH DEUTSCHLAND Marie Curie Strasse 8 50170 Kerpen BELGIQUE NEDERLAND LUXEMBOURG

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It is available both with short and long rear cargo deck. In long rear cargo deck model, the payload area is 2,75 square meters with transportable weight of over 700 Kg. we can choose between handlebar model, for suburban areas and the steering wheel model, for driving inside and outside the city. Its also available with long-lasting light alloy sides featuring a modern design The Ape of the 3rd millennium. - A modern design with brand-new rear lights - rolled-steel section rear cargo deck - metallic mat and many other beautiful details to be discovered. Piaggio - Comparative Business Analysis Snapshot Business Description Piaggio The Group principal activities are the development,

production and sale of two-wheeled vehicles (scooters with engine sizes ranging from 50cc up to 500cc and motorcycles from 50cc up to 1.100cc) with the Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo brands. It also manufactures three and four-wheel light commercial vehicles (VTL) for utility and personal mobility, with the
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Ape, Porter and Quargo brands. Other activities include designing and producing of engines for scooters, motorbikes, minibikes and karts. The Group has 7 production facilities, 4 in Italy and 3 abroad (Spain, India and Republic of China) and operations in over 50 countries. In 2004 the Group acquired the Aprilia Company. Competitor Analysis This analysis compares Piaggio Nc Spa with three other companies in closely related industry sectors. The full Comparative Business Report is available to Subscribers or may be purchased individually. The full report generally includes the following sections: - Sales Analysis: Recent Sales, Sales Growth, Sales per Employee - Recent Stock Performance - Company Valuation Ratios: Price/Earnings, Price/Book Value - Price/Sales and 52 Week Price change - Dividend Analysis - Profitability Analysis: Gross Profit Margin - Earnings Before Extraordinary Items - Inventory Analysis
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- Research and Development Expenses - Financial Position: Long Term Debt/Equity, Days Accounts Receivable, Days Inventory

Present and Future April 6th 2004 Piaggio signs a strategic agreement with Chinese group Zongshen to produce and market engines, vehicles and components for the Asian market. The Prime Minister of the Popular Republic of China Wen Jiabao visits group headquarters in Pontedera, and is welcomed by Group Chairman Roberto Colaninno, Chief Executive Officer Rocco Sabelli, and by Piaggio management and staff. Matteo Colaninno, Vice Chairman of the Young Entrepreneurs Group in Italy and Europe is nominated Piaggio Vice Chairman. The final contract is signed for the acquisition of the Aprilia - Moto Guzzi Group, and with that the undisputed leader in the Italian 2 wheel market is born: 24% of the European 2 wheel market and 35% of the Italian market, over 600.000 vehicles per annum, 6.000 employees and 8

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industrial plants worldwide, with a presence in more than 50 countries. Following the Aprilia deal IMMSI S.p.A. becomes the major controlling shareholder with a strategic 40% interest in Piaggio. January 11th 2005 At the first meeting of the Board of Directors of Aprilia S.p.A., Roberto Colaninno is nominated Chairman, Rocco Sabelli Chief Executive Officer Director and Ivano Beggio Honorary Chairman. Gianclaudio Neri is nominated General Manager. At the same meeting Leo Francesco Mercanti is assigned responsibility for the new Aprilia Brand Management Division. Research & Development Innovation, Research and Development The Piaggio Group carries out its own research in 5 centers located in Italy, Spain, India and China; the centers employ over 700 technicians. The organization of the research function is underpinned by recognition of the importance of synergy, flexibility and brand custodianship. The pursuit of excellence in the Piaggio Group is based on anticipating client needs, creating products which are technically, stylistically and
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functionally innovative, and using research to achieve a better quality of life. These are also the key elements in maintaining its leadership

position in the market. Research and Development at Piaggio is thus clearly focused in two main areas: the ongoing search to create better performing and more environmentally friendly engines, and the constant improvement of vehicle safety and functionality. Range of engines Engine design and production involve a great deal of technology and require highly specialized resources. The Piaggio Group has at its disposal an engine research division which is unique in the whole of Europe and has the capacity to deal with an unparalleled breadth of petrol, diesel or natural gas driven engines for mopeds, scooters, motorcycles or light transport vehicles, ranging in size from 50cc to 1200cc, either 2 or 4 stroke with one or more cylinders, and with manual or automatic transmission systems. Through a suite of unique and well defined brands, the Groups product range satisfies the needs of a vast clientele. Whilst the mono and dual

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cylinder range of scooter motors between 50cc and 850cc constitutes the common basis for this product category across the brands (Piaggio, Aprilia, Vespa, Gilera, Derby), motorbike engines are much more diversified, in line with the markedly different characters of the various brands. Thus the typical monocylindrical Derbi engines, Motoguzzis twin cylinder transverse engines with universal joints and Aprilias high performance longitudinal 60 or 90 degree V. Engine Research Engine research is principally focused on the quest for high performance and also on respect for the environment. High performance means meeting the requirements of an ever more demanding clientele: low consumption, low maintenance costs, reduced engine noise, improved driving pleasure, and clockwork functioning and reliability. Care for the environment obviously means ensuring conformity to the ever more stringent laws governing gas emissions, but there is more to it: new fuel systems, alternative fuels and innovative engines are the areas in which Piaggio engine research is focused as it seeks solutions for the future.

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Topics of research thus include improving engine efficiency, reducing internal friction, optimizing internal fluid dynamics, introducing direct (Purejet) and indirect (Master and Quasar) electronic injection systems, and exhaust systems with 3 way catalytic converters and Lambda probes. Other fuels under research include GPL, methane and diesel injection. The future today Piaggio Engine Research is focused on an ambitious medium term project: the hybrid HyS (Hybrid Scooter). A Hybrid HyS is a twin engined vehicle which combines the advantages of petrol engines with those of electric engines. It is common knowledge that whilst internal combustion engines have elevated levels of endurance and power in a cruising situation, their acceleration capacity from a standstill is unimpressive. On the other hand, the Achilles Heel of the emission-free electric engines is the short duration of their battery charge. Although they are not particularly fast on the open road, they develop maximum torque from standstill without any lag and without clutch and gears.

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Hence the HyS: a vehicle with two hearts which accelerates combining the power of both engines, thermal and electric, and is able to attain the same velocity on the open road as a standard petrol engine. It has no emissions in limited traffic areas where it functions as an electric, and it has the added advantage of being able to recharge its batteries while in motion. Vehicle innovation and safety As regards vehicles, the Groups R&D activities mainly revolve around proposing new solutions which improve clients quality of life. As with engines, the product range is very wide, from mopeds to light delivery vehicles, from small-engined motor cycles to super sports versions and racing vehicles, and both on and off road bikes as well as little scooters and touring bikes. Three-wheel vehicles are the answer to mobility for the European citizen and contribute to traffic decongestion while guaranteeing an adequate level of safety and comfort. As such Piaggio is strongly

committed to ongoing improvement of safety systems (braking systems, suspension, electronic control of vehicle dynamics) and to the search for

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new architectural solutions by means of aerodynamic and ergonomic analysis. Piaggio R&D has recently proposed completely innovative formulas such as the revolutionary undulating Three-wheel vehicles which constitute a milestone for increased active safety in urban mobility. The presence in the group of brands such as Aprilia, Derbi and Moto Guzzi guarantees the commitment of Piaggio R&D not only in the high performance sector where our products are at the cutting edge of technology, but as regards the traditional vehicles which evoke a strong emotional response. The future tomorrow Piaggio is actively researching in high tech fields such as the design and development of vehicles powered by hydrogen fuel cells; this technology promises the most for Zero Emission with a high level of autonomy. Piaggio has participated successfully in various projects in this area and has produced Europes first fully functional scooter using the X9 model; the search continues.

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Optimizing the production process In an ever more competitive environment, optimizing costs and time-to-market is an important strategy for maintaining and increasing leadership in the market for 2 wheel vehicles. Group R&D departments avail themselves of structures capable of ensuring continuous improvement in the product development process through simultaneous engineering: 200 CAD and CAE seats for 3D modeling of vehicle components and assemblies, and for structural, fluid dynamic and multibody analysis, all of which allow the identification of potential problems and their solutions in the early phases of the process. In

addition there are mechanical, electrical and technical laboratories, echo chambers for acoustic tests and test benches for engines and finished vehicles. R&D: External collaboration Piaggio has ties with an international network of the worlds most advanced academic and private research centers and laboratories.

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Through consultation as well as sponsored research projects and doctoral theses, cooperation is particularly strong between the company and the University research centers at Pisa, Florence, Perugia, Bologna and Graz, as well as the Milan Politic and Fiat Careers value People are the bedrock of our competitive ability. The wealth represented by our employees skills, abilities and passion for our products is the fundamental basis on which our image and our reputation are sustained. The striving of our employees, both individually and as members of a team towards our objectives of customer satisfaction, innovation and the anticipation of market needs is the real engine of our leadership and of the value created for our customers and the company. t Company vision and the crucial nature of human resources The asset represented by our employees, their skills, their abilities and their potential plays a central role in our business vision, in our strategic direction and in our competitive positioning within our markets. Together with the capacity of our employees to learn continuously and to remain up to date with changing technologies and market needs, their

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professional competencies and their knowledge of our products and what constitutes satisfaction for our clients, are the only real guarantee that Piaggio can keep producing consistently high quality results. The

concepts of skill and being skilled are inextricably linked with having understood how to achieve a truly outstanding result. This is what we mean when we refer to Skills as company assets to be documented, protected, communicated and further developed. Objectives of the human resource management policies The primary objective of Piaggios human resource management policies is to create a blueprint for the enactment of the company business vision and its requirement for a virtuous circle linking company results, customer satisfaction, customer value, and the value created by and for employees. The polices are therefore born out of the business vision and their common goal is to define how the company can create a significant exchange of value which is motivating for all the people who work in the company.

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As such, the policies as a whole and individually have a dual function as regards this value exchange: 1) To increase employee value: staff is the first and the most important of the companys intangible assets. The policies guide management in extracting value from employees while investing in their growth, the optimization of their skills and the protection of the wealth of know-how which they represent. 2) Increasing value for employees: in this sense employees are recipients of a value proposal intended to inspire and motivate them to do their best because they see their contributions suitably rewarded and their expectations and aspirations met. Creating value for employees means providing guidance and, where necessary, redirecting motivation in line with the business focus. The policies which Piaggio intends to introduce, communicate and make operative relate to the key aspects of human resources management and development. Inherent in the policies is the idea of aiming for excellence, in the sense that they are meant to create and establish within the organization a better way of guiding staff towards excellence; this implies a conscious willingness and capacity on the part
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of management to apply them efficaciously and a readiness by staff to take joint responsibility and to get actively involved. In combination, these states of mind impel the trajectory of the organization as whole towards constant improvement, and, ultimately, excellence. The policies are thus intended a guide and as a common reference point for the orientation and transformation of individual and collective behaviors in line with the evolution of the company and of the factors which govern its success. Policy deployment and its objectives Recruitment and internal enlistment policy . The objective is to attract and keep the people and skills which are

the best for the business and to use internal mobility and experiential development in diversified roles, contexts and functions as a fundamental tool to optimize individual skills and accelerate the development of individual capacities and potential. Communication and awareness policy. The objective is to create a two-way channel between the company and its employees which simultaneously transmits fundamental
49

information for employees understanding of where the company is going in order that they might channel their individual motivation and actions, and at the same time, provides a means of listening to employees and evaluating their satisfaction levels and the organizational climate all with a view in the longer term - to increase individual commitment to company goals. Employee appraisal policy. The objective is to give all Piaggio employees a full understanding of the aspects on which they are evaluated. Transparency as regards the how and why of the various methods used to evaluate their own performance, skill and ability is fundamental in enabling employees to make sense of the companys assessment criteria and adjust their behavior accordingly. Distinctive skills development policy. This supports the fundamental role of being competent both for personal performance and for the achievement of company goals. The development of the distinctive competencies, required by business and market evolution, is an absolute priority and for this reason competencies

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become the pivot around which the Human Resources process revolves, from recruiting to training, career development, and the compensation policy itself, which will focus increasingly on rewarding and retaining employees with strategic business know-how. Professional development and career policy. The objective is to pursue the development of key resources in line with organizational growth and competitive strategy and to create a portfolio of employees prepared to fill pivotal roles. In this context, the Management Review offers a vitally important inventory of the pool of available managerial and professional skills and an analysis of the development progress of specific individuals and the status of key roles. In order to fully utilize available skills and expertise, the Professional development and career policy also allows for management and professional training. Training Policy. This recognizes the importance of continuously updating employee skills and aligning them with organizational needs as the business evolves. The offer of training opportunities is available for every role

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and level of responsibility, for professional groups and for individuals, in short for whoever has the motivation to increase their value as employees in line with business requirements. The main objective is thus to increase the value of the organizations human capital both on an individual level and overall. Rewards policy. The objective is to reward employee contributions according to clearly understood, competitive, fair and merit-based criteria so as to motivate and retain the best employees i.e. those who contribute the most to the business and to company results. Annual remuneration is

composed of a fixed portion linked to a specific role and to an employees level of individual skill, and a variable portion established in terms of the corresponding increase in company value and the results achieved whether individually or as part of a team. Besides encouraging a results-oriented culture, the MBO, incentivisation and performance evaluation systems are intended to link the variable portion of the remuneration overtly with individual results, and most importantly, to allow for differentiated levels of recognition, offering the most

52

significant rewards to those whose performance contributes the most to success and to company results. Strategic employees policy. This has the fundamental objective of increasing the companys ability to attract, motivate and develop the best resources for its business. As such, the policy takes its direction from business decisions and the success factors which become critical as a result. Hence it could be applied to entire groups or to individuals whose personal and professional value is of particular relevance to the company, and involves a higher value exchange via individually tailored management, development and recognition practices. Trade Union relationships policy. To ensure a sustained increase in company value for all stakeholders, the Piaggio Trade Union relationships policy aims to promote the involvement of workers and their Union in the process of achieving company objectives and promoting the values which guide the company and its competitive success. Such involvement is also meant to develop employees motivation and their sense of responsibility for

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company growth. To this end, the companys success must always be the prime goal when defining and managing key themes (flexibility, operational organization and plant use, productivity, working periods etc.) Whilst the agreements and behaviors adopted in the various

countries in which the Group operates will be in line with local social and institutional norms, they will always be coherent with the basic principles and overall requirements of the Group. Competitive organizational policy. The continued success of the Piaggio Group is also dependent on continuous improvement in the overall efficiency and effectiveness with which it is able to respond to changes in the market place and to produce value for the customer along the entire value chain. As such, the Group sees the innovation of organizational structure as a key issue to create competitive advantage; through the Organisational policy it aims to create a lean, customer-oriented, value generating structure which is process based and has an integrated partner network of suppliers and dealers who cooperate in the companys value chain. With this in mind, the Piaggio Group is committed to reducing hierarchical levels, as a means of leveling its business playing fields and to encouraging self

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management driven by the search for customer value.

Equally it is

committed to delegating authority as a factor to instill a sense of responsibility in employees and to speed up decision making. Customer orientation will be emphasized via continuous improvement in the key business processes, ongoing role development and an across-the-board approach. In their entirety, these principles express the importance of respect for the person, ensure management fairness and exclude any type of discrimination, particularly on the grounds of sex, age, nationality, ethnic origin, ideology and religious belief Milestones of Piaggio The year 2005 saw piaggio vehicles private limited achieve outstanding growth in terms of sales. Piaggio announced a record sales of 1 lakh units in 2005.a 41% increase in sales volume compared to the previous year Piaggio has sold around 98,470 units of ape 1 tonner covering both the cargo and passenger segments and close to 2000 units of ape 1.3 tonner.the company has also increased production capacity by around 40% in the last year.
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 Piaggio sold a record 10,000 vehicle in the month of October, a milestone that celebrated on November 8,2005 at the Taj Blue Diamond

Chapter 4 Survey Analysis and Interpretation

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57

SURVEY ANALYSIS

This Chapter deals with the analysis of data collected from the survey of customer opinions about the PIAGGIO APE Vehicles.

The data has been analyzed with reference to the stages involved in the purchase decision process of consumers vise; need arousal, information search, and evaluation of alternatives, purchase decision and post purchase behavior of consumer.

In the case of study on consumer behavior the respondents play vital role. Individuals and groups who satisfy their needs by obtaining products or value from enterprises involved in the manufacture of such products or provision of such services are called consumers.

In this chapter, we have analyzed the data of respondents. This would necessitate obtaining the accurate demographic profile of the respondents.

A convenient sampling technique was made use of for this survey and the number of respondents chosen was 100.

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1. Do you have any three wheelers? Frequency Valid Yes No Total 90 10 100 Percent 90.0 10.0 100.0

Do you have any three wheeler

no

yes

Interpretation: The above graph shows that 90% of the respondents have 3 wheelers and 10% of respondents do not have 3 wheelers. By this company come to know potential customers for their 3 wheeler vehicles.

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Mention the factors influenced you to buy vehicle

Frequency Valid Brand name After sale service Mileage Technology Design Price Total 29 11 43 6 5 6 100

Percent 29.0 11.0 43.0 6.0 5.0 6.0 100.0

M n nth fa to in e c dy utob y v h le e tio e c rs flu n e o u e ic

5 0

4 0

3 0

2 0

Percent

1 0

0 B n nm ra d a e A r s lese ic fte a rv e M ae ile g Tc o g e h lo y D sig e n P e ric

Mn nth fa to in e c dy utob yv h le e tio e c rs flu n e o u e ic

Interpretation: The above graph shows that 29% of respondents agree that brand name is influenced to buy vehicle
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 11% of respondents considered after sale service is influenced to buy vehicles 43% of respondents said that mileage is influenced to purchasing vehicle 6% of respondents said that technology and price 5% of respondents considered design. According to survey it is found that mileage is the most important influenced factor considered to buy vehicles.

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2. Are you aware of Piaggio Vehicles?

Frequency Valid Yes No Total 97 3 100

Percent 97.0 3.0 100.0

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From the above the graph we can see that in the total sample size of 100, 97% of respondents aware of the piaggio vehicle and 3% of the respondents not aware. Here we can see awareness level of customers towords the Piaggio ape vehicles.

3. Are you aware of Olikara motors Piaggio ape vehicles showroom in Shimoga

Frequency Valid Yes NO Total 92 8 100

Percent 92.0 8.0 100.0

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Are you aware of Shubha motors Piaggio ape vehicles showroom in Belgaum
NO

Yes

Interpretation: From the above graph we can see that 92% of the respondents aware of Olikara motors piaggio ape vehicle showroom in Shimoga and 8% of the respondents not aware.

4. The brand of Piaggio have lived up to my expectation

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Valid

Strongly agree Agree Neither agree not disagree Disagree Strongly disagree Total

Frequency Percent 22 22.0 49 49.0 23 23.0 5 1 100 5.0 1.0 100.0

The bran of Piaggio h d ave lived up to m expection y

60

50

40

30

20

Percent

10 0 S trongly agree Agree N either agree not di D isagree strongly disagree

The brand of Piaggio have lived up to m expection y

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Interpretation: The above graph illustrates the expectation level of customers towards the piaggio ape vehicles 22% of the respondents have strongly agreed that whatever they expected from the brand has lived up to their expectation 49% of the respondents have agree on this 23% of respondents have neither agree nor disagree 5% of respondents has said that piaggio ape brand did not lived up to their expectation 1% respondents strongly disagree

Majority of the respondents agree that the brand of Piaggio lived up to their expectation .they satisfied with their vehicles.

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5. What is your opinion about quality of Piaggio ape vehicles? Frequency Valid Excellent Good Average Poor Total 26 38 34 2 100 Percent 26.0 38.0 34.0 2.0 100.0

W a is yo r o in n a o t q a o P g io a e v h s ht u p io b u u lity f ia g p e icle
5 0

4 0

3 0

2 0

Percent

1 0

0 E lle t xce n Go od Ave g ra e Po or

W is you opinion about quality of P hat r iaggio ape vehicles

Interpretation: From above graph we can see that the opinions made by the customers towards the quality of piaggio brand. 26% respondents have the opinion of the quality of the piaggio ape vehicle is excellent 38% have rated it as good

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 34% of them said that quality is average , 2% of respondents have opinion of the quality of vehicles is poor

6. Would you intend to purchase/change your vehicle?

Frequency Valid Yes No Total 36 64 100

Percent 36.0 64.0 100.0

Would you intend to purchase/change your vehicle

70 60 50 40 30 20

Percent

10 0 Yes No

Would you intend to purchase/change your vehicle

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Interpretation: The above graph shows that the number of respondents wants to purchase or change vehicle. 36% of respondents want to have or change vehicle.

64% of the respondents do not want to purchase/change vehicles

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7. If yes the purchase will be

Valid

Within 4 months 4 to8 months 8 to 12 months After one year Total

Frequency 7 10 9 10 36

Percent 7.0 10.0 9.0 10.0 36.0

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if y sth p rc a ew b e e u h s ill e
3 0

2 0

1 0

Percent

0 W in4mn s ith o th 4to mn s 8 o th 8to1 mn s 2 o th a r o ey a fte n e r

if y sth p rc a ew b e e u h s ill e

Interpretation: The above graph shows that the time period for purchase of vehicles Out of 36% of,7% of respondents have planned to buy vehicle within 4 months 10% of them have planned to buy 4 to 8 months 9% of respondents have planned to buy within 8 to 12 months 10% of the respondents have planned to buy after one year

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8. Will you purchase piaggio vehicle Frequency 7 16 7 3 3 36 Percent 7.0 16.0 7.0 3.0 3.0 36.0

Valid

Definitely Probably not sure Probably not Definitely not Total

will you purchase piaggio vehicle

50

40

30

20

Percent

10

0 definitely probably not sure probably not definitely not

w you purchase piaggio vehicle ill

Interpretation: The above graph shows that the number of respondents wants to purchase Piaggio vehicle. Out of 36% respondents, 7% of respondents will definitely purchase piaggio vehicle 16% of them will probably purchase piaggio vehicle. 7% of respondent said not sure 3% of respondents probably not purchase piaggio vehicle. 3% of respondents said that they definitely not purchase.

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9. I do not intend to purchase/change my vehicle because

Valid

Missing Total

Satisfied with vehicles Vehicles are highly priced Difficult to handling High maintenance cost If other specify Total System

Frequency existing 27 5 23 8 1 64 36 100

Percent 27.0 5.0 23.0 8.0 1.0 64.0 36.0 100.0

I do not intend to purchase/change my vechicle because

50

40

30

20

Percent

10

0 satisfied with exist Difficult to handlin If other specify Vechicles are highly High m aintenance cos

I do not intend to purchase/change my vechicle because

Interpretation:
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According to survey it was found that the satisfied with existing vehicle, vehicles are difficult to handling are the most important factors considered to not purchase a vehicle. Out of 64%, 27% of respondents are satisfied with existing vehicles 5% of respondents said that vehicle are highly priced 23% of them said that vehicle are difficult to handling 8% of them said there is high maintenance cost. 1% of respondents said that other factors made not intend to purchase vehicle.

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Chapter 5 Findings, Suggestions and Conclusion

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Findings 90% of the respondents have 3 wheelers and 10% of respondents do not have 3 wheelers. By this company come to know potential customers for their 3 wheeler vehicles. 29% of respondents agree that brand name is influenced to buy vehicle 11% of respondents considered after sale service is influenced to buy vehicle 43% of respondents said that mileage is influenced to purchasing vehicle 6% of respondents said that technology and price 5% of respondents considered design. According to survey it was found that mileage is the most important influenced factor considered to buy vehicles. 97% of respondents aware of the piaggio vehicle and 3% of the respondents not aware. 92% of the respondents aware of Olikara motors piaggio ape vehicle showroom in Shimoga and 8% of the respondents not aware 22% of the respondents have strongly agreed that whatever they expected from the brand has lived up to their expectation 49% of the respondents have agree on this 23% of respondents have neither agree nor disagree

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5% of respondents have said that piaggio ape brand did not lived up to their expectation 1% respondents strongly disagree Majority of the respondents agree that the brand of Piaggio lived up to their expectation .They satisfied with their vehicles. 26% respondents have the opinion of the quality of the piaggio ape vehicle is excellent , 38% have rated it as good, 34% of them said that quality is average, 2% of respondents have opinion of the quality of vehicles is poor 36% of respondents want to purchase or change vehicles 64% of the respondents do not want to purchase/change vehicles Out of 36% of, 7% of respondents have planned to buy vehicle within 4 months 10% of them have planned to buy 4 to 8 months 9% of respondents have planned to buy within 8 to 12 months 10% of the respondents have planned to buy after one year. Out of 36% respondents, 7% of respondents will definitely purchase piaggio vehicle 16% of them will probably purchase piaggio vehicle.

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7% of respondent said not sure 3% of respondents probably not purchase piaggio vehicle. 3% of respondents said that they definitely not purchase. Out of 64%, vehicles 5% of respondents said that vehicle are highly priced 23% of them said that vehicle is difficult to handling 8% of them said there is high maintenance cost. 1% of respondents said that other factors made not intend to purchase vehicle 27% of respondents are satisfied with existing

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Suggestions The company should take steps to increase the awareness among the general public. However there is less advertisement of Piaggio ape vehicles. Company has to concentrate more on the attributes that are preferred by the customer, so that company can meet their expectation. By this the company can position positively in the minds of the customer. Dealers have to increase the promotional activities which will leads to increase the sales in their region or area. Such as giving gifts, compliments etc on purchase of vehicles. Most of the respondents respondended that there is high maintenance cost .So Company has to take steps towards that. Most of the people expecting 4 wheelers ape range vehicles from company. So company has to understand Customers needs.

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Conclusion From the survey analysis it was found that most of the people are well aware about Piaggio ape vehicles in Shimoga city.

Piaggio is one of the biggest company in the world and the company reaching out to more geographical locations and adding more names to their customers roster. Company achieved a respectable market share and continues to lead in their chosen business segment. It is also observed that the advertising and sales promotional activities that are carried out by the dealers are less. Therefore they should formulate some aggressive strategy, which will help to increase the sales volume. And the company also has to make a point the most of the people in their suggestion said that they want 4 wheelers ape range vehicles. So the company can use this information to manufacture the right type of vehicles. That is what the customer wants.

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Annexure Questionnaire Bibliography

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Questionnaire
I am a student of final year BBM studying in Sahyadri Arts College, Shimoga. As a part of my study, I have undertaken a project report on Customer behaviour about Piaggio Ape Vehicles, a case study of Olikara Showroom, Shimoga. I would be grateful if you could spare a few moments to fill this questionnaire and give me some of your valuable suggestions, the information that is given by you will be used only for academic purpose. Thanking you, Yours faithfully Kiran Raj .G

1. Do you have any three wheelers? Yes No 2. If yes specify the name of the company 3. Basic criteria for choosing the above company a) brand name b) Safety c) Comfort d) Aesthetic e) price f) Maintenance g) if the other specify

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4. Whenever you think of a three wheeler vehicle which brand comes to your mind. 5. Mention the factors influenced you to buy vehicles a) Brand image b) After sale service c) Mileage 6. Are you aware of Piaggio Vehicles? Yes No 7. Are aware of Olikara motors Piaggio vehicles in Shimoga Yes No 8. If yes trough which media a) Executive b) Pamphlet c) News paper d) Friends e) TV f) If other specify d) technology e) design f) price

9. The brand of piaggio have lived up to my expectation a) Strongly agree b) Agree c) Neither agree not disagree d) Disagree e) strongly disagree

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10.What is your opinion about quality of piaggio vehicle? a) Excellent c) Good c) average d) poor

11.Would you intend to purchase/change your vehicle? Yes No If yes, the purchase will be a) Within 4 months b) 4 to 8 months If no move to question no 13 12.Will you purchase Piaggio vehicle a) Definitely b) Probably c) Not sure 13.I do intend to purchase /change my vehicle because a) Satisfied with existing vehicle b) Vehicles are highly priced d) high maintenance cost e) if other specify d) probably not e) definitely not c) 8 to 12 months d) after one year

14.Your suggestion for improvement of Piaggio vehicle

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Bibliography
Reference books Product management Donald R.Lehmann Russells Winner Company manuals Websites www.google.com

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