1.

INTRODUCTION

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a
Balanced Scorecard.
In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy.
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.
"Customer satisfaction" is the important statement of the problem in this
project.
Measuring customer satisfaction

Customer satisfaction refers to the extent to which customers are happy with the
products and services provided by a business. Customer satisfaction levels can
be measured using survey techniques and questionnaires. Gaining high levels of
customer satisfaction is very important to a business because satisfied customers
are most likely to be loyal and to make repeat orders and to use a wide range of
services offered by a business.

2.THEORETICAL BACKGROUND OF STUDY

Market
The term market may be considered as a convenient meeting place where buyers and sellers
gather together for the exchange of goods and services. Market means a group of people
having unmet wants, purchasing power to make their demand effective and the will to spend
their income to fulfill those wants.
Marketing
Marketing is a comprehensive term and it includes all resources and set of activities necessary
to direct and facilitate the flow of goods and services form the producer to the consumer
through the process of distribution. Businessmen regards marketing as a management
function to plan promote and deliver products to the clients or customers.
Marketing Management
Marketing management represents an important functional area of business management
efforts for the flow of goods and services from the producer to the consumers. It looks after
the marketing system of the enterprise. It has to plan and develop the product on the basis of
known customer demand.
Marketing Mix
Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in
the target market.
There are four elements or variables that make a marketing mix, they are:
1. Decisions on product or service.
2. Decisions on promotion
3. Decisions on price
4. Decesion on Distribution

Marketing Research
Marketing research is the systematic gathering, recording and analyzing of the data about
problems connected to the marketing of goods and services i.e. problems relating to product,
price, promotion and distribution of the 4ps of the marketing mix.Marketing research is
concerned with all those factors, which have a direct impact upon the marketing of products
and services. Marketing research has grown along with the expanded role of marketing as the
focus for the business decision-making.
Consumer
A person who purchase or has the capacity to purchase the goods of service often for sale by
the marketing firm in order to satisfy personal need and desires.
Perception
Perception is the sensing of stimuli external to the individual organism the act or process of
comprehending the world in which the individual exists.
Perception has been defined by social psychologists as the Complex process by which
people select organize and interpret sensory stimulation in to a meaningful and coherent
picture of the work.

3.RESEARCH METHODOLOGY
Survey research is the systematic gathering of information from respondents for the purpose
of understanding and/or predicting some aspects of the behaviour of the population of
interest. It is the most common method of collecting primary data for marketing
decisions.Survey research is concerned with administration of questionnaires
(interviewing). The survey research must be concerned with sampling, questionnaire
design, questionnaire administration and data analysis. The administration of
questionnaire to an individual or group of individuals is called an interview. A questionnaire
is simply a formalized set of questions for eliciting information. As such, its function is
measurement andit represents the most common form of measurement in marketing research.
The report has been prepared as per the information obtained from two sources. They are:
Primary data:Primary data consists of original information for the specific purpose at hand. It is first
hand information for the direct users of respondents. The tools used to collect the data may
vary and can be collected through various methods like questionnaire, personal interview
Secondary data:Secondary data is the data which is already been collected and assembled. This data is
available with the companies or firms and it can be collected from newspapers, periodicals,
magazines, websites etc.
Primary data:
1. Structured questionnaire
Secondary data:
1. Data from various magazines especially bike magazines.
2. Internet.
Sampling plan :
Data collected has been analyzed and interpreted by percentage system and presented in pie
charts.
Sampling frame :
Customers visiting showrooms for servicing their Vespa motorcycles.
Sampling unit:
Motorcycles owners esp. Piaggio Vespa motorcycle owners

Desired sample size:

A sample size of 100 motorcycle owners was specified in Nanded city.
Research was undertaken in Vaishnavi motors,Nanded.

Objectives of the study

1. The objective of the study is
Measure customer satisfaction towards Vespa.
2. To measure customer satisfaction of Piaggio Vespa scooter owners.
3. To know the tastes and preferences of people of when it comes to Piaggio
Scooters.
4. To find the reasons for buying vespa motorcycle.
5. To know the showroom people co-operation & availaiblity of acessories.

4. INDUSTRY PROFILE
Two-Wheeler industry is one of the largest industries in the automobile sector of global
market. Being the leader in product and process technologies in the manufacturing sector, it
has been recognized as one of the drivers of economic growth. During the last decade, welldirected efforts have been made to provide a new look to the automobile policy for realizing
the sector's full potential for the economy. The liberalization policies have led to continuous
increase in competition which has ultimately resulted in modernization in line with the global
standards as well as in substantial cut in prices. Aggressive marketing by the auto finance
companies have also played a significant role in boosting automobile demand, especially
from the population in the middle income group.
India is the second largest manufacturer and producer of two-wheelers in the world. It stands
next only to Japan and China in terms of the number of two-wheelers produced and the
domestic sales respectively. This distinction was achieved due to variety of reasons like
restrictive policy followed by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public transportation system etc.
The Indian two-wheeler industry made a small beginning in the early 50s when Automobile
Products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in
1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy.
The agreement expired in 1971.
In the initial stages, the scooter segment was dominated by API; it was later overtaken by
Bajaj Auto. Although various government and private enterprises entered the fray for
scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India. It was a
complete seller market with the waiting period for getting a scooter from Bajaj Auto being as
high as 12 years.
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of
regulation and tight control to a more liberalized and competitive era. Two major results of policy
changes during these years in two-wheeler industry were that the, weaker players died out giving
way to the new entrants and superior products and a sizeable increase in number of brands entered
the market that compelled the firms to compete on the basis of product attributes. Finally, the two-
wheeler industry in the country has been able to witness a proliferation of brands with introduction
of new technology as well as increase in number of players. However, with various policy measures
undertaken in order to increase the competition, though the degree of concentration has been
lessened over time, deregulation of the industry has not really resulted in higher level of
competition.

5.COMPANY PROFILE

Founded in 1884,Piaggio & C. s.p.a is today one of the leading manufacturers of 2-wheeler
and small commercial vehicles in the world. With its registered office in Pontedera(pisa),
Piaggio is the market leader in Europe and has expanded its operations to 24 countries,
including a major presence in Asian Markets.
The product range includes Scooters, mopeds and motorcycles starting from 50 to 1200cc
under the piaggio, Vespa, Gileria, Aprilia, Moto Guzzi, Derbi and Scarabeo brands.The 3 and
4 wheeled light transportation vehicles are marketed under the Ape, Porter and Quargo
brands.
Piaggio Vehicles Private Limited (PVPL), the pioneer of 3-wheeler goods transportation in
India, is today the no. 1 in its class. By setting global standards in vehicle performance and
customer service, it has revolutionized the 3 wheeler cargo segment in India. Today the
company offers a range of passenger and cargo vehicles for many customized applications.
Piaggio vehicles are engineered for higher fuel efficiency, rugged performance and
outstanding load carrying capability. Living up to Piaggios core philosophy, all its vehicles
conform to the most stringent emission norms.
PVPL has now firmly established its position as an undisputed leader in the diesel 3w market.
This impressive growth trajectory would not be possible without PVPLs advanced R&D
center, modern manufacturing unit and stellar network. In the past 10 years, over 1.5 million
Indian transporters have trusted ap for total dependability, reliability and profitability.
Today, lakhs of tonnes of cargo and millions of passengers are transported daily across the
country on the ap.
Piaggio India has successfully introduced state-of-the-art products with world class
technology in India. Its reputation is built on its efficient network spread across India,
providing worldclass customer care.
.

To be the no.1 and the most profitable global player with world class quality and technology
leadership in the light commercial vehicle 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 world for its unmatched level of excellence.

To become market leader in the light transportation vehicle segment, and achieve the status of
world-class company which manufactures & markets a wide range of high quality product to
the total satisfaction of customer in the domestic and overseas market by ensuring:
*Low cost of manufacture
*High profiable growth
*Sustainable domestic & global competition
*Maximised stake holders satisfaction and pride
*Business Ethics

Corporate Social Responsibility

In order to improve and facilitate public hygiene, PVPL has donated ap 3-wheeler Special
Purpose Vehicles for Garbage Collection & Transportation. With a view to encourage greater
participation from students as well as institutions, some of our initiatives in this realm are:
PVPL sponsored the National Level Science Exhibition, organized by Vidya
Pratisthan, Vidya Nagari, MIDC, Baramati, attracted illustrious visitors such as the
then Hon. President of India, Mr. APJ Abdul Kalam.
PVPL has sponsored the Interschool Science Quiz Competition, an event organized
by Vidya Pratisthans D. Ed College (English & Marathi medium), MIDC, Baramati.
PVPL has donated Personal Computers to schools at Baramati.
As a move to promote disciplined driving, PVPL has sponsored one of the Traffic
Signals at Baramati.
PVPL has also sponsored the Baton Rally at Baramati for Commonwealth Youth
Games.

10

PRODUCT PROFILE
VESPA

PVPL is proud to launch the iconic Vespa in India. Vespa is a unique example of immortal
design that has gone beyond a mere commuting product to become a part of social history and
way of life.
The Vespa is an ageless brand that is now a symbol of a distinctive lifestyle in market after
market around the world. Invented by Piaggio in 1946 as the world's first scooter, the Vespa
rose rapidly in popularity to become a loved and revered emblem of 'made in Italy' and 'a
new, unique way of enjoying mobility'. The Vespa is present in more than 100 countries with
over 17 million units being sold since its inception.
With its Indian foray, Piaggio intends to create an exclusive, premium segment for the brand.
The Vespa will be positioned as a lifestyle, iconic, timeless and ageless product that goes
beyond mobility and leverages its heritage and unique values.
Vespa in India will meet the aspirational needs of the fashion, style and brand conscious
individuals who would like to be a breed apart. Predominantly aimed all over the world at a
premium segment of consumers who are looking to own nothing but the best.
The Vespa production plant opened today is the third factory set up by the Piaggio Group in
Baramati, a city in the Pune district of the State of Maharashtra. The area is home to the
manufacturing complex of Piaggio Vehicles Private Ltd., a wholly owned Piaggio Group
subsidiary which already produces three-wheel goods and passenger vehicles (and is the
market leader in India, with annul sales of more than 220,000 vehicles) and, in an adjoining
facility, scooter engines for the Vespa and diesel and turbodiesel engines for the commercial
vehicle ranges produced by Piaggio in India and in Italy, in Pontedera. With the opening of
the Vespa production plant, the Piaggio Group industrial complex in Baramati now provides
jobs for approximately 3,000 workers.

11

The new Vespa factory is located on an area of more than 150,000 square metres, including a
covered surface area of 32,000 square metres. It handles the full Vespa machining cycle, from
welding of the monocoques to varnishing and final assembly. The initial production capacity
of the plant, which was built in just 14 months, is 150,000 scooters/year; capacity will be
raised to 300,000 during 2013 as part of the Piaggio group industrial and commercial
program.
Marketing of the Vespa, at 66,600 Indian rupees (equivalent to approximately 1,000
euro/1,260 USD at the current exchange rates), is currently beginning in Indias 35 largest
cities, through a distribution network already comprising 50 exclusive dealers, on the basis of
a coordinated image system dedicated entirely to the Vespa brand.

12

What it costs
Ex-showroom

Rs 66,000 (Maharashtra)

Engine
Fuel

Petrol

Installation

Inclined from vertical

Type

125cc Single-cylinder, 3valve air-cooled, fourstroke

Compression ratio

10:1

Power

10.06bhp at 7500rpm

Torque

1.08kgm at 6000rpm

Power to weight

88.2bhp per tonne

Transmission
Type

CVT

Dimensions
Length

1770mm

Width

690mm

Height

1140mm

Wheel base

1290mm

Chassis & Body

Weight

114kg

Wheels

3-spoke alloy

Tyres

90x100x10 inches (Front

and rear)

13

MODELS:

LX125

The Vespa LX 125 is a scooter currently made by Piaggio.

The LX 125 uses the same frame as the LX 50 but features a 125 cc engine capable of a listed
maximum speed of 59 mph (95 km/h). The LX 125, like all modern Vespa scooters features a
4-stroke single overhead camshaft and steel frame construction. Vespa claims 7075 mpgUS (3.43.1 L/100 km; 8490 mpg-) fuel efficiency.
The LX models feature an automatic torque slave transmission and front disc and rear drum
brakes.

VX125

The Vespa VX 125 is the second premium scooter from Piaggio. Cosmetically and
mechanically, the scooter is similar to the LX 125 but there are few improvements; most
important of them is the 200mm front disc brake setup. The Vespa VX 125 features the MRF
Zapper tubeless tyres and the instrument cluster has been updated to give a fresh look. The
Vespa VX is powered by the same 125cc single-cylinder air cooled engine which powers its
lower version. The engine develops 10.06bhp of power at 7500 rpm which is transmitted to
the rear wheel via a CVT transmission

14

6. SWOT ANALYSIS

Strength:
* Brand itself speaks
* Pick up
* World wide market
* Potential Parent Brand

Weakness:
* Price
* Reluctant to change
* No scope for semi urban places
* Lack of celebrity marketing
* Limited Models
Opportunities:
* Introducing more models
* Expansion Of territory in semi urban areas

Threats:
*Compeitators
* Political Factors
* Licensing/Legal Factors

15

7.ANALYSIS OF DATA COLLECTED

Statement Of Problem
To understand and identify what the consumer feels or perceives about Piaggio motor bikes.
This will help the marketer to identify which all are the factors that a consumer looks in to
when he selects a particular bike. And also explains how a consumer selects and interprets
the qualities of bike that Piaggio offers.
Objectives of the study
1. The objective of the study is
Measure customer satisfaction towards Vespa.
2. To measure customer satisfaction of Piaggio Vespa scooter owners.
3. To know the tastes and preferences of people of when it comes to Piaggio Scooters.
4. To find the reasons for buying vespa motorcycle.

16

1.The age group in which respondents lie under:

Age Group

Respondents

18-25

30

26-35

33

36-50

29

50<

08

Respondents

18-25
26-35
36-50
50<

Interpretation / Analysis:
Most of the respondents lie in the age group of 18-25 i.e 30%.Followed
by 33% of which lies under the group of 26-35, 29% of the respondents
are from the age group of 36-50 and 08% of people were lying under age
group of 50 & above.

17

2. Respondents Work Status/Employment Status:

WORK STATUS

Respondents

Professional

33

Business

12

Student

27

Others

28

Repondents

Professional
Business
Student
Others

Interpretation / Analysis:
In the above graph we can see the work status in which 33 % are professionals,
12% are from business category,12% are students and remaining 28% aquired
by others( Non-Professionals).

18

3.Respondents Source of Awareness with regard to Piaggio Vespa Scooter:

Source Of Awareness

Respondents

Tv Advertsement

60

Newspaper

22

Friends & Peer

14

Radio

04

Respondents

Tv add
Newspaper
Friends & Peer
Radio

Interpretation/Analysis:
In the above graph it is shown that 60% of people come to know about vespa through Tv
advertisement,22% of people come to know through newspaper followed by Friends & peer
i.e, 14% and remaining 04% through Radio.

19

4.Respondents Satisfaction towards price of vespa

Price Satisfaction

Respondents

Satisfactory

45

Unsatisfactory

55

Respondents %

Yes
No

Interpretation/Analysis:
In the above graph it is shown that 45% of respondents are satisfied towards vespa scooter
price and remaining 55% of people are unsatisfied.

20

5. Respondents rating towards Bodystyle, Design & Look of Vespa Scooter

Ratings

Respondents

Excellent

24

Good

36

Average

30

Poor

20

Respondents %

Excellent
Good
Average
Poor

Interpretation/Analysis:
In the above graph it is shown that 36% of people rated Good,30% of people rated it as
average and 24% of people rated as Excellent and remaining 20% of people rated it as Poor.

21

6. Respondents Satisfaction Towards Driving comfort of Vespa?

Driving Comfort

Respondents

Excellent

36

Good

28

Average

22

Poor

14

Respondents

Excellent
Good
Average
Poor

Interpretation/Analysis:
In the above graph it is showed that 36% of people expressed it as Excellent,28% of people
said it as good,22% of people said it as average,& remaining 14% of people rated it as poor.

22

7.Respondents Preference towards colour of vespa?

Colour Preference

Respondents

White

28

Yellow

38

Orange

14

Black

20

Respondents %

White
Yellow
Orange
Black

Interpretation/Analysis:
In the above graph it is showed that 38% of respondents prefer yellow colour,28% of people
prefer white,20% of people prefer for black & remaining 14% for Orange.

23

8.Stisfaction towards pickup and Performance?

Pickup & Performance

No.of Respondents

Satisfactory

78

Unsatisfactory

22

Respondents

SaYsed
UnsaYsed

Interpretation/Analysis:
In the above graph it is showed that 78% of people are satisfied towards pickup &
performance and 22 % people are unsatisfied.

24

9.Response Towards the Quality of Vespa scooter

Quality

Respondents

Excellent

26

Good

40

Average

20

Poor

14

Respondents

Exccellent
Good
Average
Poor

Interpretaion/Analysis:
With respect to quality in the above graph it is showed that 40% of people rated it as
good,26% of people rated it as Excellent,20% of people rated it as Average and 14 % people
rated it as Poor.

25

10.Response towards various attributes Of Vespa?

Attributes

Respondents

Breaking

30

Safety

26

Storage

44

Respondents

Breaking
Safety
Storage

Interpretation/Analysis:
In the above graph it is showed that 44% of people like its storage capacity, 26% towards its
safety & 30% people like its breaking system.

26

11. Response towards Features of Vespa

Technical Features

Respondents

Style & Design

22

Acceleration

36

Riding Comfort

28

Mileage

14

Respondents

Style & Design

AcceleraYon
Riding comfort
Mileage

Interpretation/Analysis:
In the above graph it is demonstrated that 36% of respondents choose its acceleration,28%
people choose its riding comfort,22%people prefer to style & mileage and remaining 14%
people reffered it for mileage.

27

12. Response towards co-operation by showroom people?

Co-operation

Respondents

Satisfactory

88

Unsatisfactory

12

Respondents

SaYsfactory
UnsaYsfactory

Interpretation/Analysis:
In the above graph it is demonstrated that 88% of people are satisfied with the co-operation
towards sowroom people & 12% people are not satisfied.

28

13.Response towards availability of accessories and spare parts

Availaiblity

Respondents

Satisfacctory

60

Unsatisfactory

40

Respondents

SaYsfactory
UnsaYsfactory

Interpretation/Analysis:
In the above graph it is showed that 60% respondents are satisfied towards availability of
spare parts & accessories & 40% people are unsatisfied.

29

14. Response towards survivallence of Vespa in existing market?

Opinion On survivalence

Respondents

Yes

78

No

22

Respondents

Yes
No

Interpretation/Analysis:
In the above graph it is demonstrated that 78% of people say positively regarding
survivalence of the vehicle in market & remaining 22% of people reacted negatively.

30

15.Response Towards Recommendation Of Vespa To others:

Recommendation

Respondents

YES

82

NO

18

Respondents

Yes
No

Interpretation/Analysis:
In the above graph 82% of people respond positively toeards recommending the scooter to
others and remaining 18% reacted negatively.

31

8.FINDINGS, SUGGESTIONS & CONCLUSION

Findings

More focus was towards Urban Area.

Relaunch of outdated model lead to dis-intrest in youth to purchase.
It succeded in attracting professional but failed to reach business people
Lot of dis-satisfaction towards price as because of price skimming strategy used by
Vespa.
Storage & Pickup considered to be major attributes of the vehicle .
Mileage acted as a loophole in sales of a scooter.
Lack of service centres in semi-urban places.

Suggestions

. Need to expand the territory for semi urban areas.

Modification or Updation generates intrest in youth.

Need to improve the boot space of the vehicle so that it acts major advantage to
business people.
Need to reduce the price as to beat the compeitation.
Improvement in Mileage

32

CONCLUSION
During the live project we found that so many people and officials use vespa bikes because of
pickup. Some of the office going people and students(Female) prefer vespa because of its
easy handling too.
People preference to vespa scooters is rapidly increasing because of Pickup and satisfactory
after-sale service.

LIMITATIONS OF THE STUDY:

1. The responses given by the respondents may not be true.
2. The respondents may be careless in responding to the questionnaire.
3. The respondents may be illiterate

33

Learning Experience

This study made us to understand the demand and factors which affect the buying preference
of a consumer. They always take care of customer taste out of the 4 Ps of marketing price,
product plays very important role though promotion doesnt play that much important role
because in our survey we found that the least factor which affects the consumer to vespa
bikes was promotion, but another fact is that consumers preference is always quality and
prices of the bike.
This company is majorly influenced by price factor as in this field too many competitors are
ready to occupy the market share as consumer taste and preference vary according to various
factor so by understanding the consumer need we must fix the competitive price.
The pie chart creates a visual model, which people can use when comparing different data
sets. Using different colors, pie charts divide information into sections resembling pie slices
which is accompanied by a number of percentages, and its size changes accordingly. Graphs
and charts condense large amounts of information into easy-to-understand formats that clearly
and effectively communicate important points.
In the near future consumers desires more and more bikes to be introduced in the market and
at the same time they should maintain quality because most of the consumers prefer Vespa
scooter by quality .

34

ANNEXURE

QUESTIONNAIRE
Hello, I am Sushma Kondalwar From ITM Nanded, undergone into a marketing research on
CUSTOMER PERCEPTION TOWARDS PIAGGIO VESPA SCOOTERS in Nanded city for the
partial fulfillment of BBA degree.
I would request you to co operate with below questionnaire which will help me in
further analyzing the data for project completion and the details which you provided will be
kept confidential.
Thank you
Sushma Kondalwar
Reg No:
1.Name :

2.Age group : a)18-25 b)26-35 c)36-50 d)50<

3.Gender : a)Male b)Female

4.Work area: a)Professional b)Business c)Student d)Others

5.How do you come to know about Vespa Scooter?
a)TV Advertisement b)Newspaper c)Friends & peer d)Radio

6.Does the price of vespa is satisfactory?
a)Yes b)No

35

7.How will you rate body style, design and look of vespa Scooter?
a)Excellent b)Good c)Average d)Poor

8.What do you feel about the driving comfort with regard to vespa scooter?
a)Excellent b)Good c)Average d)Poor

9.Which colour of vespa scooter you prefer the most?
a) White b)Yellow c)Orange d)Black

10. Are you satisfied with the pickup and performance of the vehicle?
a)Satisfied b)Unsatisfied

11.What do you feel about the quality of vespa scooter?
a)Excellent b)Good c)Average d)Poor

12.What you feel about the design of vespa scooter?
a)Excellent b)Good c)Average d)Poor

36

13.How do you feel about the (Attributes) breaking system, safety features and storage
space of vespa scooter?

EXCELLENT
GOOD

AVERAGE

POOR

Breaking

Safety

Storage

14.What feature attracted you to purchase vespa scooter?
a)Style & Design b)Acceleration & Pickup c)Riding comfort D)Mileage

15.How was the Co-operation from the show room people with respect to post sale service
of Vespa?
a)Satisfactory b)Unsatisfactory

16.Do you think with the current features, performance and the price, will Vespa be able to
compete with other brand scooters in the market?
a)Yes b)No

17. Do you recommend others to buy Vespa scooter?
a)Yes b)No (specify the reason)

18.Your Overall Rating on Vespa Scooter is:
a)Excellent b)Good c)Average d)Poor.

37

REFERENCE
1. www.VespaIndia.com
2. www.Overdrive.com
3.Mcgraw hill publications

38