Customer satisfaction Survey On Hyundai Motor India Limited

Done By Ashish Nayak TYBBA, 04.

A 1

PROJECT REPORT ENTITTLED

CUSTOMER SATISFACTION SURVEY

ON

Hyundai Motors India Limited

SUBMITTED BY

Ashish Nayak

TO S.S.DEMPO COLLEGE OF COMMERCE & ECONOMICS (BBA STREAM) ALTINHO, PANAJI- GOA.

IN PARTIAL FULFILLMENT OF THE BACHELOR DEGREE IN BUSINESS ADMINISTARATION COURSE, UNDER THE GUIDENCE OF THE TEACHER OF B.B.A STREAM 2011 - 2012.

DECLARATION BY THE STUDENT

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Me the undersigned student hereby declare that this project entitled Customer satisfaction survey on Hyundai Motors Limited India submitted in the partial fulfillment of the requirement for the degree course of bachelors degree of business administration to S.S.DEMPO college of commerce & economics ( B.B.A Stream ) Altinho- Panaji, Goa .

I further state that no part of this project has been submitted for a degree or diploma or any other similar title in this or any other university.

PLACE: PANJIM Date: 31/ 01/ 2012

ASHISH NAYAK

CERTIFICATION

ACKNOWLEDGMENT

Its a great privilege that I have done my project in such well organized and diversified organization. I am grateful to those who helped and supported me in completing the project on time.

First and foremost I would like to thank Mr. Mohan (H.R Manager) for giving me opportunity to complete summer Internship in Hyundai Motors India Limited and there by fulfilling the requirement of my BBA Course.

I would like to extend my thank to Miss. Pragati (H.R. executive) for her dedicated help in gathering relevant information needed for project work. I extend my profound gratitude to my faculty members who shared their valuable views, ideas and helped in solving all quarries, which came across while doing the project. Lastly I would like to thank all those workers and officers for their valuable contribution in making my project meaningful.

CONTENTS

SR.NO

TITLES

PAGE.NO 5

Introduction

a) Company Profile and Introduction b) Research Objective c) Scope of Study d) Customer Satisfaction

7-13 13 13-14 14-15

Methodology 2 a) b) c) d) Sample Design Research Design Data Collection Data Analysis and Interpretation 16

16 16 16 17-24

Findings 3 a) Conclusion b) Recommendation

25

25 26

Appendices 4 27

Bibliography 5 a) Books Viewed b) Websites visited 28

Questionnaire

29,30

I.
a. Company profile

Introduction

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 presently markets 8 models of passenger cars across segments. The A2 segment includes the EON, Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe. 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 center 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 336 strong dealer network and 721 strong service points across India, which will see further expansion in 2011. HMIF was formed in the year 2006 with the purpose of 'giving back' to society and to initiate Corporate Social Responsibility (CSR) activities in the areas of health care, educational and vocational training, environment, road safety, art, science, technology, etc. HMIF gets its direct funding from HMIL's earnings as it contributes Rs.100 for every car sold in the Indian market to enable HMIF to carry out its social activities.

Happy Move Hyundai Motor India Foundation (HMIF), as part of its Corporate Social Responsibility program recently organizes the 'Happy Move Global Youth Volunteers camp'. As part of the initiative, students from India and Korea are work together towards a common cause of community development. The activities in the camp are focused on education and renovation activities. The 'Happy Move Global Youth Volunteers Camp' is also supported by Field Services and Intercultural Learning (FSL), an Indian NGO India, and International Work camp Organization (IWO), an NGO from Korea. Hyundai Traffic Squad
Students Traffic Volunteer Scholarship Scheme is an initiative by HMIF to sponsor the 'economically backward' college students and also help in managing traffic better. A

group of carefully chosen students, after proper training by the local traffic police, work as traffic marshals at busy intersections in conjunction with the traffic police to control and manage traffic. The students are paid a stipend for their efforts and this scheme is successfully running in the cities of New Delhi, Chennai and Kolkata. HMIL will further expand the scheme to other cities of India.

Educational and Vocational Training Program HMIL, under the aegis of HMIF is committed to the task of improving conditions in local schools around Sriperumbudur as well as nationally. At regular intervals it donates chairs, tables, computers to the schools to create a better environment for educating children. Till date, over 20,000 school students have benefited through this program. HMIF has adopted ITI's in Assam and Ulundurpet to equip them with latest infrastructure facilities and also provides employment opportunities to students who graduate from here.

Medical Camps for Neighborhoods HMIF conducts a number of free Medical Camps. Apart from this, the Foundation has also entered into an agreement with Sri Ramachandra Medical University for operating a Mobile Health Clinic in villages between Poonamalee and Kanchipuram. The mobile clinic will have a Medical Officer, Pharmacist, Nurse, Attendant and maintain a regular supply of medicines. The van has a Satellite link which enables it to be in direct contact with the hospital and get assistance and advice even in the remotest of villages. Hyundai Driving School As part of skill development, driving school was started by HMIF to train unemployed youth in

Kancheepuram & Thiruvallur Dist. Three batches (100) had been trained during 2009 and this will be an ongoing program.

Products of Hyundai:
Models Body Type Segment Fuel Type Price Eon ( D-Lite, D-lite(O), Era, Magna, Lpg, Magna (O), Sportz) Hatch Back A2 Petrol

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Models Body Type Segment Fuel Type Price Models

Santro Xing ( Non Ac, CNG Non Ac, GL Plus, GLS ) Hatch Back A2 Petrol i10 (D-Lite, Era, Magna, Blue Drive LPG (Era, Magna) Sportz (O/AT) Asta (AT) Diesel) Hatch Back A2 Petrol 4,15,000 6,98,000 I20 (Era, Magna, Sportz, Asta(O/AT) Diesel(Era, Magna Sportz, Asta) Hatch Back A2 Petrol/ Diesel 5,33,000 8,28,000

Body Type Segment Fuel Type Price Models Body Type Segment Fuel Type Price

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Models Body Type Segment Fuel Type Price Models

Accent ( Executive, Eco LPG) Sedan A3 Petrol 5,90,000 6,34,000 New Verna Fluidic (1.4, fludic, SX, SX(O), AT, 1.4 Diesel, Diesel, SX, SX(O), AT) Hatch Back A3 Petrol/Diesel Sonata Transform 8,12,000 12,30,000 Transform, Diesel ,AT) Sedan A5 Diesel 17,09,000 19,94,000 Santa Fe ( Santa Fe, 4WD, Automatic 4WD) SUV A5 Diesel 27,17,000 30,70,000 ( Sonata

Body Type Segment Fuel Type Models Price Body Type Segment Fuel Type Price Models Body Type Segment Fuel Type Price

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INDUSTRY PROFILE The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year. The dominant products of the industry are two wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people. The supply chain is similar to the supply chain of the automotive industry in Europe and America. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. With a high cost of developing production facilities, limited accessibility to new technology, and increasing competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. Systemsuppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India's increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing 26% of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 200809, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy.

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The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilizing manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favorable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.

b.

Research Objectives. To find out customer satisfaction level among the products of Hyundai.

c. Scope of Study The customer is always right. This is incontrovertible. Customer belongs at the heart of every business because without them there is no business. Without their money, there is no exchange. Therefore, for any company, the customer is the starting point that influences very move. Marketing is based on this logic. It is process by which a company finds out what its customers want and need, and then delivery it in a way that that makes as much profit as possible. Because marketing focuses on customers, the heart of every business and sources of all income, it follows logically that marketing as a mere function of business to be performed intermittently. By focusing on different customers, a marketing orientation gives a company an edge over those who focus more on different products, selling and the production. Marketing opportunity arise when customer wants and need arise. There is no point in trying to sell something for which there is no demand. The production process must be informed by customer demand. Customer will not often buy just because it exist. Customers are satisfied when offered what are needs. In practice, they are not all that easy to please. Marketing is also about predicting what customer will want and need in the future. It is native have to think that customers needs and want remain constant adopting the customer-centered approach to a business will involve change. As psychiatrists have noted, change is always stressful but often necessary. Wants and needs change along with markets, product, and cultures. The SLEPT FACTOR (social, legal, economic, political, and technological) can affect the behavior of customers, the market they form, and the ways in which a company can respond. To stay ahead of competition, a change in outlook must occur. Innovation should be encouraged. Marketing has been conceptualized and accepted as an activity directed at satisfying need and wants through exchange process. The Marketing Concept is essentially the satisfaction of the customer needs through integrated marketing with the

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intend to satisfy the customers while earning the profit. The basic idea is that a satisfied customer will likely to repurchase, leading to increase sales and share for the firm. Integrated marketing activities aimed at producing customer satisfaction include what have been referred to as 4 Ps of marketing, namely product, promotion, price & place. Generally marketing is conceder as the Primary functional area in the firm that works to satisfy the firms customers. It is true that customer satisfaction is the result of total marketing efforts, industry has generally failed to recognized the importance of customer as provided by physical distribution to the customer satisfaction and has not effectively integrated customer service with the other component of marketing mix.

d. Customer satisfaction: Satisfaction is the persons feelings of pleasure or disappointment resulting from comparing a products perceived in relation to his or her expectations. In general, if performance of the products matches the expectations, the customer is said to be satisfied. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectations. In a competitive marketplace where business complete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. If performance exceeds expectations, the customer is said to be highly satisfied or delighted. If the performance falls short of expectations, the customer is said to be dissatisfied. Measuring customer satisfaction: Organizations are increasingly interesting in retaining existing customers while targeting non-customers measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organizations products.

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Tools for measuring Customer Satisfaction: Complaint and Suggestion Systems: A customer-centered organization makes it easy for customers to register suggestions and complaints. Companies also using web sites and e-mail for quick, two-way communication. Customer Satisfaction Survey: Responsive companies measure customer satisfaction directly by conducting periodic surveys. Ghost Shopping: Companies can hire people to pose as potential buyers to report on strong and weak points experienced in buying the companys and competitors products. These shoppers can even test the companys sales personnel handle various situations. Lost Customer Analysis: Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened. Focus Groups: Focus groups can be held on an informal or formal basis. On an informal basis, consider having a group of users meet for coffee or lunch to discuss their satisfaction with services being evaluated. On a more formal basis, a facilitator with experience in leading focus groups can work with personnel to plan questions and activities to elicit perception of value and satisfaction from Participants. Customer Satisfaction Survey: Study show that although customers are dissatisfied with one out of every four purchases, less than five percent of dissatisfied customers will complain. Most customers will buy less or switch to other supplier. Complaint levels are thus not good measure of customer satisfactions responsive companies measure customers Satisfaction directly by conducting periodic survey. They send questionnaire or make telephonic calls to a random sample of recent customers. They also solicit buyers views on their competitor performance. While collecting customer satisfaction data, it is also useful to asked additional questions to measure re purchase intention; this will normally be high if his customer satisfaction is high. It is also useful to measure likely hood or willingness to recommend the company and brand to others. A high positive word-of-mouth score indicates that the company is producing high customer satisfaction. Customer satisfaction helps company in knowing the wants, needs and expectation of customers. It also helps to collect feedback about products. This will assist company in new product development.

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I.

Methodology

The purpose of research methodology is to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Why a research study has been undertaken, how the research problem has been defined. In what way and why the hypothesis has been formulated, what data have been collected and particular method has been adopted. Why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. A research design serves as a bridge between what has been established (the research objectives) and what is to be done, in the conduct of the study. In this project research done is of conclusive nature. Conclusive research provides information that help in making a rational decision. Descriptive design was choose to measure the satisfaction level of customers on the basis of different parameters such as quality, price, features, technology, after sale services etc. This design ensured complete clarity and accuracy. It also ensured minimum bias in collection of data and reduced the errors in data interpretation. Statistical method was followed in this research because the data was of descriptive nature and it also enabled accurate generalizations.

a. Sample design
Survey. A sample of 300 customers.

b. Research Design
Detailed and structured questionnaire was designed. The questionnaire was designed to get information from customers about their satisfaction and overall opinion about Hindustan Unilever Limited Product Pure It. The methodology developed was Primary and Secondary research. c. Data Collection.

Primary data

Primary data are those which are collected as fresh and for the first time and thus happen to be original in character. It was collected through questionnaire and personal interviews. The secondary data are those which have already been collected by someone else and which have already been through the statistical process. The data were collected in the form of company profile and produce profile from the web sites. Some of the books were referred for theoretical concepts.

Secondary data

a. Data Analysis and Interpretation. 17

1. Age Group. Interpretation: - Less than a hundred of people falling in an age group of 18 30, while majority of people were found in an age group of 30 40, with only 66 people falling in an age group of 40 50, with remaining 42 people were above 50 years of age.

2. Occupation Interpretation:- In an occupation bar diagram it was found that 111 people were employees, while that of 126 were business people, with that of 51 being students and rest 12 of them were listed under others.

3. Which Model of Hyundai Car are you using?

Interpretation:- Eon being recently launched it has 4% of people who are already owning it, Santro being the oldest it has 19% of people using the car, while the majority of the people were found owning i10 with 27% , with i20 being owned by 17% of people, Accents shares only 11% with that of Verna being driven by 17% of people while Sonata Transform and Santa Fe share 5%.

4. For how many years are you using this car?

Interpretation: - Majority of the people was found in the first category, while 90 people fall in second category of 2 3 years. With 63 people falling in 3 4 years category, while remaining 36 people fall in last category of 4 years and above.

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5. Are you satisfied with your car?

Interpretation:- 89% of people say that they are satisfied with the car while that off only 11% of people are not satisfied. If No, Please give reason.

6. Are you satisfied with the accessories provided by the company?

Interpretation:- As far as accessories are concerned, 96% of people are very much satisfied with the accessories provided while that of only 4% of people say they are not.

7. Do you prefer Hyundai Insurance over other insurance option?

Interpretation:- with other companies in market 88% of people say not to prefer Hyundai insurance over other insurance while 11% say that they do prefer. 19

8. Do you find easy availability of the product?

Interpretation:- 73% of people say that the products are easily available, while that of 27% say that there is no easy availability of product.

9. Do you have a varied selection in choosing the merchandise?

Interpretation:- 84 people say that there is a varied selection in choosing the merchandise with the majority of the people say that they neither agree nor disagree while 24 people say they disagree.

10. Do you find display of merchandise attractive?

Interpretation:- 54 people say display of merchandise is excellent while that of 72 say it is good while majority of the people say that its an average display of merchandise.

11. Do you find your vehicle in good condition? 20

Interpretation:- majority of the people found their vehicle in excellent condition while that of only 27 of them say that it was in good condition.

12. In which area do you think/feel Hyundai should improve?

Interpretation:- with no quality concern, majority of the people say that they should improve on their service while 135 people say that they should also look on pricing.

13. Would you like to recommend Hyundai cars to others?

Interpretation:- 100% of people say that they would like to recommend Hyundai cars to others.

14. What is your overall opinion about Hyundai?

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Interpretation:- 117 people say that the over opinion about Hyundai is good while that of 183 say that its very good.

I.

Findings

Hyundai should maintain the standard of their products as well as their brand. Hyundai should improve on their service as well as on pricing of their product. The prospective segment is from the business and self-employed class. Hyundai has created goodwill among the customers which will help them to recommend there products to their friends and relatives.

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a. Conclusion It has been observed that most of the customers are satisfied with the products except their Insurance, as there are already much better players in market. While they have to look upon the service and the pricing of their products which could be matter of concern. Hyundai needs to improve on the mileage of their products. High customer satisfaction level helps the company to retain its existing customer as well as generate new customer through word to mouth publicity. Customer satisfaction index is a good tool to make improvements in the products and services of the company. And therefore should utilize carefully & kept as Confidential as possible.

b. Recommendation After conducting the survey and knowing the market, I realized that: The company should keep in mind the need of customer. The Company should know its customers satisfaction level throughout doing periodic surveys. Periodic surveys can treat customer satisfaction directly.

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The Company should not only concentrate on the customer satisfaction but also the company led to monitor their competitors performance in their areas of operations.

It will be beneficial for the company to make the warehouse near to the Showroom and there should be roof facility, adequate security facility in the Warehouse.

The Company should know its customers satisfaction level throughout doing periodic surveys. Periodic surveys can treat customer satisfaction directly. The Company should make changes according to their competitors if applicable & according to the customers expectations.

I.

Appendices

1.

The SLEPT Factor. (social, legal, economic, political, and technological)

2. HMC (Hyundai Motor Company ) 3. 4.

HMIL (Hyundai Motor India Limited) HMIF (Hyundai Motor India Foundation)

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5. IOW (International work camp organization ) 6. CSR (Corporate Social Responsibility )

7. FSL (Field service and Intercultural learning).

I.

Bibliography

Books Referred Marketing Management by Philip Kotler & Keller.

Website Visited. www.hyundai.com www.automotive.com www.aboutcars.com www.carlwale.com 25

II.

Questionnaire

Being an esteem customer of Hyundai we request you to give your valuable time in fulfilling following questionnaire:-

Name:-

Date:- _ _/__ /____

Sex:-

1. Age group

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18 30 above

30 - 40

40 50

50years and

2. Occupation Employee

Business

Student

Other

3. Which model of Hyundai car are you using? Car:-

4. How many years are you using this car? 02 23 34

4 years and above

5. Are you satisfied with your car? Yes No If No, Please give reason. Comfort Mileage Performance Price

Interiors

Exteriors

6. Are you satisfied with the accessories provided by the company? Yes No

7. Do you prefer Hyundai Insurance over other insurance options? Yes No

8. Do you find easy availability of product? Yes No

9. Do you have a varied selection in choosing the merchandise? Agree Neither Agree nor disagree Disagree

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10.Do you find display of merchandise attractive? Excellent Good Average

Below Average

11.Did you find your vehicle in good condition? Excellent Good Average

Below Average

12.In which area do you think/feel Hyundai should improve? Quality Service Price others

13.Would you like to recommend Hyundai car to your friends and relatives? Yes No

14.What is your overall opinion about Hyundai? Very Bad Bad Good

Very Good

Sign Thank you for your prestigious time.

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