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STUDY OF CONSUMER EXPERIENCE and SALES PROCESS OF HYUNDAI vis-a-vis COMPETITORS IN KOLKATA & PERCEPTION ANALYSIS OF
HYUNDAI AS A BRAND
Submitted by Akash Bagla Roll No.- 11DM013 PGDM 2011-2013 Submitted on June 15, 2012
Industry Mentor Mr. Kaushik Mohapatra Regional Corporate Sales Manager Hyundai Motor India Limited Faculty Mentor Prof. Dhruva Chak Professor and Area Head, Marketing BIMTECH
CONTENTS
1. LIST OF TABLES..............................................................................................................4 2. LIST OF CHARTS AND GRAPHS......................................................................................5 3. LIST OF EXHIBITS...........................................................................................................6 4. SUMMER PROJECT CERTIFICATE..................................................................................7 5. ACKNOWLEDGEMENT...................................................................................................8 6. LETTER OF AUTHORIZATION.........................................................................................9 7. LETTER OF TRANSMITTAL...........................................................................................10 8. EXECUTIVE SUMMARY................................................................................................11 9. INTRODUCTION TO THE COMPANY...........................................................................14 10. LITERATURE REVIEW..................................................................................................17 11. PROBLEM DEFINITION................................................................................................21 12. APPROACH TO THE PROBLEM...................................................................................22 13. RESEARCH METHODOLOGY......................................................................................23 14. DATA ANALYSIS..........................................................................................................25 (a) SALES SATISFACTION SURVEY.............................................................................25 (b) COMPETITOR DEALERSHIP VISIT ANALYSIS........................................................28 (c) HYUNDAI BRAND PERCEPTION SURVEY.............................................................37 15. RESULTS AND CONCLUSIONS....................................................................................51 16. LIMITATIONS AND CAVEATS.....................................................................................54 17. RECOMMENDATIONS...............................................................................................55 18. EXHIBITS....................................................................................................................57 19. REFERENCES.............................................................................................................60 20. APPENDIX.................................................................................................................61
LIST OF TABLES
1. Sales Satisfaction Survey Outcome.............................................................................26 2. Customer Experience Visit Result................................................................................29 3. Dealership Ambience Visit Result................................................................................31 4. Sales Process Visit Result.............................................................................................33 5. Price/Discounts Visit Results.......................................................................................35
LIST OF EXHIBITS
1. Brand Perception Survey Questionnaire based on CBBE Model for Hyundai.............57
BIMTECH SEAL
ACKNOWLEDGEMENT
I would like to gratefully acknowledge the contribution of all the people who tool active part and provided valuable support to me during the course of this project. To begin with, I would like to offer my sincere thanks to Mr. Kaushik Mohapatra ( Regional Corporate Sales Manager) for giving me the opportunity to do my summer internship at Hyundai Motor India Ltd. Without his guidance, support, and valuable suggestions during the research, the project would not have been accomplished. My heartfelt gratitude also goes to the entire Marketing Department at Hyundai Motor India Limited for their co-operation and willingness to answer all my queries, and provide valuable assistance. I also sincerely thank Prof. Dhruva Chak, my faculty mentor at BIMTECH, who provided valuable suggestions, shared his/her rich corporate experience, and helped me script the exact requisites. Last, but not least, I would like to thank all customers for sharing their experience and giving their valuable time to me during the course of my project.
LETTER OF AUTHORIZATION
I, Akash Bagla, a student of Birla Institute of Management Technology (BIMTECH), hereby declare that I have worked on a project titled Study of Customer Experience and Sales Process of Hyundai vis-a-vis Competitors in Kolkata & Perception Analysis of Hyundai as a Brand during my summer internship at Hyundai Motor India Limited, in partial fulfillment of the requirement for the Post Graduate Diploma in Management program.
I guarantee my research work to be authentic and original to the best of my knowledge in all respects of the process carried out during the project tenure .
My learning experience at Hyundai Motor India Limited under the guidance of Mr. Kaushik Mohapatra (Regional Corporate Sales Manager, Hyundai Motor India Limited) and Prof. Dhruva Chak (Deptt. Of Marketing, BIMTECH, Greater Noida), has been truly enriching.
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LETTER OF TRANSMITTAL
Birla Institute of Management Technology, Plot no. 5, Knowledge Park-II, Institutional Area, Greater Noida (NCR), U.P. 201306, INDIA Date: June 15, 2012 Mr. Kaushik Mohapatra Regional Corporate Sales Manager Hyundai Motor India Limited, Benchmark Tower, 8th Floor, Plot No. G1 Block- EP & GP, Sec-V, Salt Lake City, Kolkata- 700091 Dear Sir, RE: Summer Project Report Attached herewith is a copy of my summer-project report Study of Customer Experience and Sales Process of Hyundai vis-a-vis Competitors in Kolkata & Perception Analysis of Hyundai as a Brand which I am submitting in order to mark the completion of 8-week summer project at your organization. This report was prepared by me using the best of practices and summarizes the work performed on the project and is being submitted in partial fulfillment of the requirements for award of diploma. I would like to mention that the overall experience with the organization was very good, and helped me to know how work is carried out in real practice with the help of your esteemed organization. I feel honored that I got an opportunity to work with Hyundai Motor India , a company of great repute. I hope I did justice to the project and added some value to your organization. Suggestions/comments would be appreciated. Yours truly, Akah Bagla
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EXECUTIVE SUMMARY
Customers are the most important people for any organisation. They are the resource upon which the success of the business depends. Customer satisfaction is at the heart of the selling process. One estimate is that it costs five times as much to attract new customers as it does to keep an existing one. The relationship between the customer and the organisation is, therefore, an important one. The customer experience delivered by dealers is an
important component of the total brand experience and has a direct impact on overall customer satisfaction. The Company where this internship project is done is Hyundai Motor India Limited. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India.The objective of this project is to deeply study the sales process of Hyundai vis--vis competitors and deeply analyze the brand perception of Hyundai. In modern times, the purchasing of a car extends beyond a normal transaction- it is increasingly being seen as a complete service experience". This Project will help Hyundai to strengthen its relationship with customers, generate more sales and provide more satisfaction to customers. The core underlying concept and subject topic behind this project is Sales Satisfaction Index (SSI). SSI measures the expectations of the customers with respect to the standard of sales process and service provided to the customer by manufacturer.
The project involves to identify the loopholes in the sales process of Hyundai dealers and inform the management about the real purchase experience of the customers.
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The competitor Sales Process analysis will help the company to know about the good practices of competitors regarding facilities, sales etc and also incorporate some of the good practices to make Hyundais Sales process better. Brand Perception Survey will help Hyundai to know how much customers can recall Hyundai brand and the perception of Hyundai Cars in relation to various factors. This survey will also help Hyundai to know the effectiveness of its marketing campaigns and also suggestions from customers regarding marketing, promotion etc.
Process Description or Methodology Studying and analysing the sales process of Hyundai and the SSI through Hyundai
Sales training manual.
Reporting the management with the main reasons for dissatisfaction and taking the
SSI ratings from the customers
Analysing the customer experience and sales process of Competitors in Kolkata Suggesting the best practices of competitors Designing the questionnaire of Hyundai Brand Perception survey Detailed analysis of the brand perception survey Presentation of various suggestions by Customers and own recommendations
Collecting data from these surveys on spreadsheets and analyzing them through graphs and charts, drawing conclusions about the problem areas in the processes.
Major Findings
The SSI satisfaction survey revealed that Dealers had been too casual in dealing with the customers. The dealers had a bad rating due to non performance on various attributes of SSI like Paperwork, delivery timing, sales persons behaviour etc. The Competitor visit analysis revealed the best practices of competitors and their actual sales process. It revealed that Volkswagen and Nissan have the best sales process, dealership ambience, Customer experience and price/discounts.
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The brand perception survey revealed that car owners are fully aware of the Hyundai logo. They consider Hyundai as a successful, value for money brand. Most of the customers said they would recommend Hyundai Cars to others. Most of the Customers could recall the television advertisements of i10 featuring shahrukh khan. Customers also suggested television as the most important medium for promotion of car brand.
Important Recommendations
Have stringent check system on dealers reporting of SSI satisfaction Rating Satisfy the dissatisfied customers with some rewards or benefits Identify the dealers who have misrepresented the ratings Incorporate the best practices of competitors in Hyundai Sales process Improve Hyundai dealership in all aspects of Customer Experience, Sales Process, Dealership ambience etc. Promote more Hyundai as a brand than only promoting cars Focus on other mediums of advertisements other than television Improve online social media marketing such as facebook page Make people aware of Hyundais achievements throughout the years Organise customer centric promotional events
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INTRODUCTION
Hyundai Motor Company is a South Korean multinational automaker headquartered in Seoul, South Korea. Hyundai was founded in 1967 and it, along with Kia, together comprise the Hyundai Motor Group, which is the world's fifth largest automobile manufacturer as of 2011 and the world's fastest growing automaker for two years running. Hyundai Motor Company sold 4.05 million vehicles, a 12 percent increase over 2010. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMILs total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMC's global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. It has been the number one exporter of passenger car of the country for the sixth year in a row. To support its growth and expansion plans, HMIL currently has a 451 strong dealer network and 785 strong service points in 430 cities across India. HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki.
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Product Portfolio HMIL presently markets 8 models of passenger cars across segments. The A2 segment includes EON
Santro Xing
i10
i20
Verna
Management Philosophy of Hyundai Realize the dream of mankind by creating a new future through ingenious thinking and continuously challenging new frontiers. Core Values of Hyundai Hyundai has defined 5 core values as part of their corporate philosophy and these are the principles that all employees of Hyundai Motor India promise to further foster in their organization Customer We Promote a customer-driven corporate culture by providing the best quality and impeccable services with all values centered on our customers Challenge We refuse to be complacent, embrace every opportunoity for greater challenge, and are confident in achieving our goals with unwavering passion snd ingenious thinking Collaboration We create synergy through a sense of togetherness that is fostered by mutual communication and cooperation within the company and wih our business partners People We believe the future of our organization lie in the hearts and capabilities of individual members, and will help them develop their potential by creating a corporate culture that respects talent Globality We respect the diversity of cultures and customs, aspire to be the worlds best at what we do, and strive to become a respected global corporate citizen Hyundai Vision 2020 To become a trusted lifetime partner of our customers, we will bring a new perspective to automobile through innovative mobility solutions based on human-centric, eco-friendly technologies and services.
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LITERATURE REVIEW
The project is largely concerned with Sales Satisfaction Index(SSI) and Sales Process of automobile Companies. The main framework of first two surveys of the project revolves around Sales Satisfaction. Sales Satisfaction Index (SSI) Source Hyundai Sales Training Manual 2011 SSI measures the satisfaction of the customers with respect to the standard of sale process and services provided to the customer by manufacturer. Customer Satisfaction = Performance Expectations In automobile Sales Context, Dealer should exceed the expectations of the customers. Customer Satisfaction (Delight) = Dealer performance exceeding customer expectations Following are the 7 factors and 41 Attributes of SSI Deal (9%) Wide range of payment options Ease of understanding the negotiation How quickly you negotiated deal Degree of influence on negotiation process Price paid relative to expectations
Paperwork (10%) Purchase Paperwork Ease of completing purchase documents How quickly purchase paperwork process completed Clear explanation of all purchase documents Ability to answer purchase paperwork querie
Finance Process Ease of providing required documents for financing How quickly finance process completed Consideration and respect in dealing confidential documents
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Clear explanation of all finance documents Ability to answer finance related querie
Dealer Facility (11%) Convenience of location Neighbourhood of dealership Exterior layout inviting and friendly Display of product information Wide selection of display vehicles Ease of looking at vehicles Comfort of office where transaction completed Convenience of operating hours
Sales Initiation (12%) Amount of time waited to be greeted Explanation of features and benefits prior to purchase Salespersons attention focussed on you Demonstration of vehicle Thoroughness of follow-up on enquiries/requests
Sales Person (15%) Sales persons knowledge about vehicles Courtesy and friendliness Fulfilment of commitments Sufficient time allowed before deciding Appropriateness of Sales Pressure
Delivery Timing (16%) Length of time needed to deliver vehicle Ability to deliver at requested time Ability to deliver at promised time
Deliver Process (26%) Condition of vehicle Attention focussed on you during delivery Enthusiasm of staff to make the delivery process enjoyable Time to complete delivery process Thoroughness of explanations during delivery process Ability to answer questions during delivery process
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A major part of the project deals with the brand perception of Hyundai. The questionnaire for the survey is totally inspired by the following brand perception model. Customer Based Brand Equity Model Source : http://thinking-brands.blogspot.in, http://brandandbutter.wordpress.com The CBBE model approaches brand equity from the perspective of the customer whether customer is an individual or an organization. The CBBE model provides a unique point of view as to what brand equity is and how it should best be built, measured and managed. The power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time. The big challenge for marketers is to ensure that customers have the right type of experiences with their products and services. In order to do this, marketers must develop marketing programs in way that best fit into customers' mind and linked the brand to the desire customers' feelings, thoughts, actions and beliefs. So that customer-based brand equity is defined as, the differential effect that brand knowledge has on consumer response to the marketing of that brand.
CBBE MODEL PYRAMID Start from the base of the pyramid and work your way up, building the blocks of a strong brand. Step 1: Salience - talks about Brand Awareness (depth and breadth) Identity Ensure customers can identify the brand and can associate the brand with a specific product class or need.
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Depth of brand awareness: how likely the brand will spring to mind (recognition and recall) much the customer knows your brand when they see/hear about it Breadth of brand awareness: when the customer thinks about your brand, and the range of purchase/usage situations in which the brand comes to mind. Step 2a. Performance Meaning Establish meaning to the brand so that when customers think of the brand, they strategically link both tangible and intangible brand associations with the brand. Performance dimensions: primary characteristics, secondary features, product reliability, durability, serviceability, service effectiveness, Service efficiency, empathy, style, design and price. Step 2b. Imagery User profiles, purchase and usage situations, personality and values, history, heritage and experiences. - usually intangible aspects of the brand - can be formed directly; via own experiences - can be formed indirectly; via external marketing communications, advertising, word-ofmouth Step 3a. Judgment Responses Gauge customer responses to the brand identification and brand meaning. Brand judgments are personal opinions and evaluations about the brand. Judgment dimensions: quality, credibility, consideration, superiority Step 3b. Feelings (strong and favourable) Feelings dimensions: warmth, fun, excitement, security, social approval, self-respect Step 4. Resonance (intense and active) Relationships Convert the brand response to create intense, active loyalty relationship between the customer and the brand. Loyalty, Attachment, Community, Engagement
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PROBLEM DEFINITION
SSI Satisfaction
Hyundai Motors India follows a very detailed process of satisfying its customers when they inquire and buy a vehicle from Hyundai Dealership through the process of Sales Satisfaction Index (SSI). SSI measures the expectations of the customers with respect to the standard of sales process and service provided to the customer by manufacturer. The customers who had bought the Vehicle from Hyundai Dealerships from September 2011 to March 2012 were surveyed in order to cross check and take feedback regarding their purchase experience. The dealers had given a positive satisfaction rating for these Customers still Customers were not satisfied and had complained to the company so survey was done to analyse the real scenario.
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The detailed feedback was given to the management along with suggestions
Brand Perception Survey Questionnaire was developed in reference to the Customer Based Brand Equity
(CBBE) model
50 car owners were surveyed by personally meeting and via telephonic interview Detailed analysis was done of the findings and feedback Suggestions provided to management to enhance Hyundai as a Brand in India
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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Some people consider research as a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. Research methods used are systematic and it follows a series of steps and a rigid standard protocol. These rules are broadly similar but may vary slightly between the different fields of science. Qualitative Research Data Qualitative methods are those which focus on numbers and frequencies rather than on meaning and experience. It is a field of inquiry that crosscuts disciplines and subject matters. Qualitative methods are ways of collecting data which are concerned with describing meaning, rather than with drawing statistical inferences. They provide a more in depth and rich description. Quantitative Research Data Quantitative methods (e.g. experiments, questionnaires and psychometric tests) provided information which was easy to analyze statistically and fairly reliable. The objective of
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quantitative research was to develop and employ models, theories and/or hypotheses pertaining to natural phenomena. Quantitative methods were associated with the scientific and experimental approach and were criticized for not providing an in depth description. 24 While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary. The secondary data used in this research is gathered by various auto magazines, books, internet, journals etc. The Primary data used in this research are gathered by: Questionnaire Method - The questionnaire method is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by governments. When we are concerned with brand perception, it is directly related to consumer behavior and preferences. So the questionnaire method was most appropriate for Brand Perception Survey. Observation Method - Observation involves recording the behavioural patterns of people, objects and events in a systematic manner. The dealership visit analysis was a mystery shopping assignment demanded observation method of survey in order to get a proper review of the dealership and study its sales processes Data obtained from the survey is depicted in the form of Bar Charts and Diagram Tables Pie Charts Other analysis charts
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DATA ANALYSIS
Sales Satisfaction Survey
The Script : Sales Satisfaction Index (SSI) measures the expectations of the customers with respect to the standard of sales process and service provided to the customer by manufacturer. There are mainly 7 factors having 21 attributes that makes up the Sales Satisfaction which is represented as follows:
Analysis was done by detailed feedback of the customers who were dissatisfied with the purchase experience of their Hyundai cars from Respective Dealers in Eastern region . The survey was done for a total of 10 dealers who had given a satisfaction rating for these customers but later on follow-up, it was known that these customers were not satisfied so this survey was done to cross-check the experience and take fresh unbiased ratings. The Rating Scale methodology used was the standard SSI Rating criteria : 1-8 (Poor), 9 (Good) and 10 (Excellent). The Dealers Surveyed were: Mukesh Hyundai , Spring Hyundai, Bengal Hyundai, Austin Hyundai, Saini Hyundai, Aditya Hyundai, Utkal Hyundai, Republic Hyundai and OSL Hyundai and Fair Deal Hyundai.
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As evident in the table, Mukesh Hyundai and Bengal had most unsatisfied customers equivalent to almost 50 %. Following are the main reasons behind the dissatisfaction of the Customers of the respective dealers. Mukesh Hyundai Vehicle not delivered on promised time Problem regarding Paper Work Rude Sales Staff Behaviour Pre Deliver Inspection (PDI) not done properly
Spring Hyundai Confusing Paperwork Indecent Sales Staff Behaviour Delivery not on Time
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No Delivery Ceremony performed as per Hyundai Guidelines Non Sufficient Petrol given while delivery
Bengal Hyundai Delivery not on Time promised Rude Sales Staff Behaviour No Delivery Ceremony as per Hyundai Guidelines PDI not done properly
Austin Hyundai Delay in delivery of vehicle Documentation work not done properly PDI not done Sales persons was rude Smart card was issued very late
Saini Hyundai No concern towards customer Documentation Process delayed PDI not done properly and vehicle delivered in bad condition with default like scratch on windows
Aditya Hyundai Casual Sales Staff Behaviour Delivery not on promised time Delay in Paperwork
Republic Hyundai Problem in Paperwork No Delivery Ceremony Delivery not on Time promised
OSL Hyundai Delay in delivery Sales persons attitude very rude Cooperate discount promised but yet not given Test drive not given Delivery Ceremony not done
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Fair Deal Hyundai Insufficient petrol given in the car while delivery No proof of exchange of old car given Desired color of the car not given No Delivery ceremony performed Delay in delivery of vehicle
Utkal Hyundai Vehicle not delivered on promised time Rude Sales Staff Behaviour
As we can see by the above comments, the major problem surrounding these dealers in Sales Satisfaction Index is Delivery timing, Sales Person behaviour, Delivery Process and Paperwork which comprises of a major part of the SSI.
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Rating Criteria - Dealerships have been rated on a rating scale of 1-5 where 5 Excellent 4- Very Good 3 Good 2- Average 1 Bad
Competitor Dealership Visited in Kolkata Nissan (Chandrani Nissan) Chevrolet -GM (Speed Chevrolet) Honda (Eastern Honda) Ford (Kaikan Ford) Fiat ( K B Motors) Maruti Suzuki India Limited (MSIL- Mohan Motors) Volkswagen (OSL) Skoda (Jia Auto) Renault (Chowringee) Tata Motors ( R D Motors) Mahindra (Shree Automotive) Toyota (Topsel Toyota)
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As visible in the Bar Chart Analysis Volkswagen (OSL) and Skoda (Jia Auto) were the best scorers in the Customer Experience parameter of the Dealership visit. The detailed remarks of Individual Dealerships are as follows : Customer Experience Remarks (Individual Dealer)
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As visible in the analysis, one can see that many dealers scored good in this parameter but the ones who were the best were Volkswagen(OSL), Chevrolet (Speed) and Honda (Eastern Honda). The detailed remarks for individual dealers is as follows Dealership Ambience Remarks (Individual Dealer)
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As we can see in the bar chart analysis Nissan (Chandrani), Volkswagen (OSL), Chevrolet-GM (Speed) and Honda (Eastern) were the best in their Sales Process. Individual dealer remarks and analysis is as follows: Sales Process Remarks (Individual Dealer)
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As visible in analysis very few dealers were offering discounts because of huge amount of demand for diesel vehicles and recent increase in car prices because of budget, still in terms of other factors such as follow-ups which is so vital in car sales, Nissan (Chandrani) stood out as best from competition. Following is the Individual Dealer remarks. Price/ Discount Remarks (Individual dealer)
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Gender
The sample contained 39 male Sample and 11 female Sample across various age groups. Age Group
The age group was broadly divided into two categories i.e, Sample belonging to 21-24 years age group and 25 and above age group. The sample surveyed contained 23 customers belonging to 21-24 age group and 27 customers above 25 years of age. Occupation
23 13 14
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The above log is of Hyundai. The above logo was shown to sample and the sample was asked to identify the company to whom the logo belongs. The objective was of this question was to analyse how much people are aware of Hyundai Logo.
Each and every customer in the sample size(50) knew and could recognize and recall Hyundai
logo. This shows that Hyundais logo is etched in car owners mind and everyone could easily associate Hyundai with its logo. Brands which come to samples mind when they think of buying a car
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30
40
50
60
40
50 customers spoke about 168 brands when they were asked about the brands which come to their mind when they think of buying a car. The most preferred brand by customers was Honda and Hyundai. Maruti Suzuki was third preferred brand. The above bar diagram shows the top 5 brands preferred by customers . The other major brands preferred apart from top 5 is detailed in the following bar chart..
Rolls Royce Bentley Chevrolet Ferrari Nissan Ford Mahindra Jaguar Audi Mercedes Benz Skoda BMW 0
1 1 1 3 2 3 3 6 10 11 10 11 2 4 6 8 10 12
Hyundai cars which the sample could recall Customers were asked to recall the name of the cars which Hyundai currently sells in the Indian market. The objective was to know which Hyundai car is most popular in customers mind.
8 28 44 16 47 46 31 18 5 10 15 20 25 30 35 40 45 50
8 Hyundai cars was recalled 238 times by the sample size containing of 50 customers. The most popular car among the sample was Hyundai i20 along with Hyundai i10 and Hyundai
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Fluidic Verna. Customers could hardly recall the suv Santa Fe sold by Hyundai and surprisingly very few people could recall the most affordable Hyundai in Indian market- the Eon. Hyundai as a Brand? Customers were asked their opinion as what they think of Hyundai as a brand. The options were given in accordance with the relevance to the CBBE model. The detailed analysis is a s follows.
The majority of the sample i.e., 36 % consider Hyundai as a successful brand. Very few people consider Hyundai as innovative, quality and modern brand. Perception of Hyundai Cars Sample was asked their general feedback regarding Hyundai cars and what they associate Hyundai Cars with.
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Majority of the sample said that they associate Hyundai cars being affordable and value for money. The second most preferred association was the features that Hyundai cars come with. Sample said that they really find Hyundai cars having good features at very value for money pricing. Attributes of feeling people associate with Hyundai Cars Sample was asked about the attributes of feeling people associate with Hyundai cars. The options were kept in resemblance to the CBBE model.
Majority of the sample consider Hyundai as an exciting brand long with fun. Sample size also associated Hyundai cars with security aspect considering they feel safe in Hyundai Cars.
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Unique Selling Proposition(USP) of Hyundai Cars Sample was informed that Hyundai is the 2nd largest car selling brand in India after Maruti Suzuki and thus the sample was asked what according to them is the main USP of Hyundai cars that it sells so much.
As analysed previously also majority of sample again said that Hyundai cars mainly sell in India because of their pricing. Here a large portion of sample also said that Hyundai car sell because of Style and Looks and they are really impressed by new fluidic design of Hyundai Cars. Hyundai Cars Recommendation Sample was asked if they would recommend Hyundai cars to others.
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88 % of the sample size said that they would recommend Hyundai Cars to others reason being Hyundai Cars are reliable Hyundai Cars are affordable They have had good experience of owning a Hyundai
12 % of sample size said they would not recommend Hyundai Cars to others reason being Not satisfied with experience of owning a Hyundai Better cars are there in competition Handling of Hyundai Cars is bad Korean cars are not reliable
Experience of visiting a Hyundai Dealership Sample was asked to share their experience of visiting a Hyundai dealership if they have before. The objective was to know the satisfaction levels of the sample when they visited a Hyundai dealership.
72 % of the sample had visited a Hyundai Dealership before. In total majority if the Sample were satisfied with their experience of visiting a Hyundai Dealership. 8 % of the sample didnt have a very satisfactory experience and other 8 % were neutral with their experience
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Hyundai Car Presently Customer would like to buy Every car of every manufacturer has its own set of popularity. The objective of this question was to know the most popular car of Hyundai in the minds of customers.
52 % of the customers said that given an option they would like to buy the Hyundai Fluidic Verna. Hyundai Verna is the most popular and favoured car among the sample. Hyundai Promotional Campaigns recalled When a company builds a brand, it does through various promotional activities and advertising campaigns. Hyundai invests heavily in marketing and promotion following various mediums such as Television, Hoardings, Newspapers, Online promotions etc. The objective of this question was to know which promotions they are able to recall in a way suggesting which promotional campaigns and medium is most popular among customers.
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Majority of the sample could recall the television advertisements of Hyundai. The Shahrukh khan i10 advertisement is etched in viewers memory Most Appealing Marketing medium according to Customers The objective of this question was to know what according to the customer is the best and most appealing medium in advertisement of cars.
Majority of the customers being 57 % preferred television to be the most appropriate and appealing medium for advertisement of cars. Not even a single customer showed
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preference for radio as a medium for promotion of an automobile brand. A healthy percentage of the sample also suggested newspapers for the promotional camapaigns. Offer that the Customer will prefer the most when he purchases a car There are many offers in form of discounts and rewards that a manufacturer gives to customer to convert the sale of the car. Hyundai also has certain offers and schemes for customers when they come to buy a Hyundai Car. The objective of this question is to know which offer the customer is likely to consider the most. The options have been brought down at par level with a mix of benefits, cash discount and rewards so that none if the option seems comparatively weak to other option
The survey revealed that most of the customers prefer the 5 star total assurance program of Hyundai which is a very win-win situation for customer as it offers the complete peace of mind relating to purchase, maintenance and Roadside Assistance(RSA). Customers also preferred Cash Discount as the most preferred option after 5 Star Total Assurance Program. Customers also said if cash discount was more they would have preferred it above everything else.
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Suggestions given by Sample for Hyundai regarding promotion and marketing More advertisements for Premium Cars Promotion of diesel variants. Many people not aware of i20 diesel availability Advertisements should explain about car and its features rather than showing stories Very few advertisements in comparison to competition More involvement in Social Networking sites Make realistic ads enforcing the emotional connect with audiences Change Shahrukh Khan as brand Ambassador Promote Hyundai as a brand than focusing only on Cars Make Campaign reach masses on a personal level Limited Editions for models to make car more attractive and boost sales Drive through campaign for SUV Santafe Direct door to door Advertising Facebook page should be more interesting and involving Local newspapers should be focussed
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12. Hyundai i10 13. Hyundai Santro-Xing(2004), Honda City Exi (2004), Honda City zx (2007) 14. Honda City (2007) 15. Mercedes C Class, Maruti Suzuki Swift, Toyota Qualis 16. Hyundai Santro-Xing(2007) 17. Chevrolet tavera, Honda City 18. Fiat Punto 19. Toyota Corolla Altis (2012), Maruti Suzuki Ritz (2011) 20. Honda City (2002) 21. Volkswagen Polo (2010) 22. Tata Indigo, Toyota Innova 23. Hyundai i10 (2009) 24. Honda Civic(2007), Chevrolet Optra(2007) Hyundai i20 (2010), Chevrolet Spark (2007) 25. Honda Civic (2008), Hyundai i20 (2011), Volkswagen Polo (2010) 26. Volkswagen Polo (2011), Honda Brio (2012) 27. Maruti Suzuki WagonR(2004), Maruti Suzuki Swift (2012) 28. Honda City 29. Maruti Suzuki (Swift, 2011), 30. Maruti Suzuki Swift ( 2010) 31. Toyota Innova, Honda City, Maruti Suzuki Ritz 32. Honda City (2009), Hyundai i20 Diesel (2012) 33. Hyundai Verna Fluidic, Hyundai i20, Hyundai i10 34. Ford Fiesta(2007), Maruti Suzuki Swift (2010) 35. Hyundai i10 (2008) 36. Maruti Suzuki Swift (2008) 37. Honda City (2010), Hyundai Santro (2002), Volkswagen Polo (2012) 38. Hyundai i10 (2009) 39. Hyundai Getz (2006) 40. Maruti Suzuki Swift (2012) Birla Institute of Management Technology 50 Fiat (Linea, 2010)
41. Skoda Laura, Maruti Suzuki Swift, Maruti suzuki Dzire 42. Maruti Suzuki Swift (2012) 43. Hyundai i20, Honda City, Maruti Suzuki Ritz, Hyundai Santro, Maruti Suzuki Swift 44. Maruti Suzuki Zen (2001) 45. Honda City (2009) 46. Hyundai i20 (2010) 47. Hyundai Santro Xing 48. Maruti Alto k10 (2010) 49. Maruti Suzuki Swift, Fiat Punto, Volkswagen Polo 50. Hyundai i10, Honda Brio (2012)
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Hyundai Customers SSI Rating Results The result revealed that around 40% of the customers who purchased Hyundai cars from Hyundai Dealers were unsatisfied with their purchase experience. This is a major concern for the company as its very important that Hyundai creates a loyal and long term relationship with the customers when they buy a Hyundai car and Car Purchase is the most initial phase of starting that relationship. Only 46 % of the customers found their purchase experience to be good and a meagre 14 % rated their purchase experience from Hyundai to be excellent.
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Cumulative Competitor Score The maximum that a competitor could have scores is 120 based on 22 attributes across 4 parameters each having a highest score of 5. The result from the survey revealed top 3 comprising of Nissan scoring a total of 100 , Volkswagen scoring 98 and Eastern Honda 92. Thus the best performer was Nissan with its outstanding Customer experience, dealership ambience, dedicated sales force and sales process and goof follow-up. Brand Perception Survey Results People genuinely recognize Hyundais logo and could differentiate it also from Honda. Sample revealed that people can recall Honda better than any other brand name followed by Hyundai and Maruti Suzuki Customers can hardly recall Hyundai Eon. The cars etched in their memory are i10, i20 and Verna Fluidic. Customers consider Hyundai as a value for money, successful brand Sample believes the main USP of Hyundai cars is its price followed by the style and looks
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Sample genuinely likes Hyundai as a brand and would happily recommend it to others
Survey revealed that Verna Fluidic is the most preferred car by the sample followed by i20. Very few customers showed interest in Eon. Sample could recall television ads the most The Shahrukh khan i10 advertisements is etched in viewers memory Sample also suggested Television as most important medium When asked about offers they would prefer, Sample showed a strong preference towards 5 Star Total Assurance Program than any cash discount etc
CONCLUSION
Hyundai is always considered as the 2nd best player in Indian automobile market after Maruti Suzuki. Though Hyundai cars are very popular and is earning a name for itself , the project clearly revealed the loopholes in the sales process from Hyundai Dealers. The competitor visit enlightened the company the processes and best practices adopted by competitors in their sales process. The survey revealed that the competitors are very innovative and exciting in their sales process and Hyundai dealers need to incorporate those best practices in order to give the customer the same level of experience. The brand perception survey showed that cars newly launched as EON has very less recall among car owners and Hyundai has to change this situation as EON has been launched to be the most volume generating product for Hyundai. Many customers are not even aware of diesel variants of some Hyundai cars. Hyundai though is considered successful but is really not viewed as a stylish and socially approved brand which is so important for Hyundai in terms of sale of cars such as Sonata which costs around 20 lakhs. Hyundai also need to focus on the modern upcoming phenomenon of advertising such as social media and online. Thus Hyundai need to take care of these issues on a focussed level and improve upon to make the good better and better best.
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RECOMMENDATIONS
SSI Satisfaction Survey
Have stringent check system on dealers reporting of SSI satisfaction Rating Satisfy the dissatisfied customers with some rewards or benefits Identify the dealers who have misrepresented the ratings
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EXHIBITS
Brand Perception Survey Questionnaire based on CBBE Model for Hyundai
CBBE- Customer Based Brand Equity Model The CBBE model approaches brand equity from the perspective of the customer whether customer is an individual or an organization. The CBBE model provides a unique point of view as to what brand equity is and how it should best be built, measured and managed. The power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time. 1. Name 2. Gender 3. Age 4. Occupation a) Business Man b) Student c) Service d) Other 5. Brand Recognition Via Hyundai Logo? a) Aware b) Not Aware 6. Which brands come to your mind when you think of buying a car? a) Maruti Suzuki b) Hyundai c) Tata d) Honda e) Toyota f) Other 7. Which Hyundai Cars you can recall which are sold in Indian Market? a) Eon b) Santro-Xing c) i 10 d) i 20 e) Accent f) Verna Fluidic
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a) Warmth b) Fun c) Excitement d) Security e) Social Approval f) Self Respect 11. What according to you is the main USP(Unique Selling Proposition) of Hyundai cars
a) b) c) d) e) f) Price Fuel Efficiency Style & Looks Comfort Other None
12. Would you recommend Hyundai Cars to others a) Yes, why b) No, why
13. Have you ever visited a Hyundai Dealership? If yes your experience was
a) b) c) d) e) Delightful Satisfactory Neutral Unsatisfactory None (not visited)
14. If you are asked to buy a Hyundai Car Which one would you buy
a) Eon b) Santro-Xing c) i 10
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d) e) f) g) h)
15. Which Hyundai Promotional Campaigns you can recall a) Hoardings b) Television c) Newspapers d) Magazines e) Online Promotions f) Radio g) None
16. Which Marketing Communication Medium appeals to you the most in case of cars
a) b) c) d) e) f) Hoardings Television Newspapers Magazines Online Promotions Radio
18. As a Hyundai Customer Which of the following offers will excite you
g) h) i) j) Annual Maintenance Package 5 star Total Assurance Programme ( Insurance + 3 years Maintenance Package + RSA) White Goods (LCD-LED/ Aircon / Playstation) Cash Discount
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REFERENCES
Hyundai Sales Training Manual 2011
http://brandandbutter.wordpress.com/2010/01/26/cbbe-model-how-to-build-a-strongbrand/ http://thinking-brands.blogspot.in/2009/10/customer-based-brand-equity-model-cbbe.html http://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited http://www.hyundai.com/in/en/CompanyInfomation/HMIL/HMIL.aspx http://www.hyundai.com/in/en/CompanyInfomation/HMC/index.htm http://www.team-bhp.com/forum/indian-car-scene/121568-googles-report-auto-industrysearch-trends-buyer-behaviour-2012-a.html http://www.team-bhp.com/forum/indian-car-scene/121436-may-2012-indian-car-salesfigures-analysis.html
Methods and techniques (second edition) Author - C.R. Kothari (Project report pg - 14)
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APPENDIX
Googles Report on Auto Industry: Search Trends and Buying Behaviour
Overview of Indian Internet Usage
India has 121 Million Internet users. The 3rd largest user-base, behind China and USA.
2011 showed a 38% Y-o-Y growth in the number of Indian Internet users 20 Million of these 121 Million users are only mobile users (i.e. don't ever use a computer)
Compare this to our paltry 20 Million Internet users just 5 years back Expectations are set at 300 Million users by 2014, which would put India at 2nd place
The Survey
Nielsen did the off-line surveys for Google There were 2791 respondents. 8 major cities and 234 dealerships (of 7 manufacturers). Survey conducted in Jan-Feb 2012.
All respondents had just exited a car dealership before they were given the survey
Findings
50% of buyers research online before going into the dealership 96% of the onliners use a search engine 54% of the onliners change their brand consideration set after doing online research! 72% trust the OEM websites for the most accurate information
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An upcoming trend is the desire to view video reviews of the car. Here's where the videos were watched (YouTube has 31 Million of India's Internet users visiting the site)
Online searches for the auto segment have grown 70% YoY. Note: The auto segment as a whole did NOT grow this much, its the number of searches that have grown due to more people using the Internet. Also this figure does not include mobile users. The growth has been calculated separately for mobile at 125% YoY, and 242% YoY for smart phones. Though the growth for smart phones has been much higher, they still come in somewhere between 15-20 Million users, whereas mobile users are currently at 50+ Million.
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One can see the overall growth in 2011 compared to the last 2 years.
The auto vertical is not the largest, but indeed the fastest growing
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Search queries by type of car (once again, this is GROWTH, not total). Interesting to see that there's the least growth in the popular Hatchbacks segment. This could also be looked at as there being much more new interest in other segments, like SUVs, premium sedans, etc
Google India put together a list of the most searched for cars in 2011.They looked at the interest (search query) volumes during a window of 13 weeks around the car's launch. 6 weeks before launch + 1 week of launch + 6 weeks after launch.
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