a study on CRM practise of LAXMI HYUNDAI(NEPAL)

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Internship Report on

“A Study on Customer Relationship Management Practice of Laxmi

Hyundai”

Submitted By:

ANAND KARKI1RE12MBA64

Submitted To:

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. Manjunath V S Nirpesh Niroula Asst. Professor Asst. Marketing Manager

Laxmi InterContinental Pvt Ltd.

Department of MBAReva Institute of Technology and Management

Rukmini Knowledge Park, Kattigenahalli,Yelahanka, Bengaluru-560064.

DECLARATION

REVA INSTITUTE OF TECHNOLOGY & MANAGEMENT

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I Anand karki, hereby declare that the Internship Report entitled “A Study on

Customer Relationship Management Practice of Laxmi Hyundai” with

reference to “Laxmi InterContinental Pvt. Ltd, Kathmandu” prepared by me

under the guidance of Prof. Manjunath V S, faculty of MBA Department, Reva

Institute of Technology and Management and external assistance by Nirpesh

Niroula, Assistant Marketing Manager of Laxmi InterContinental Pvt. Ltd

I also declare that this Internship work is towards the partial fulfillment of the

university regulations for the award of degree of Master of Business

Administration by Visvesvaraya Technological University, Belgaum.

I have undergone a summer project for a period of twelve weeks. I further

declare that this project is based on the original study undertaken by me and

has not been submitted for the award of any degree/diploma from any other

University/Institution.

Signature of the Student

Place: Bangalore. Student Name : Anand karki

Date: 07/07/2014 USN : 1RE12MBA64

Acknowledgement


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I would like to take this opportunity to thank everyone who has helped me

throughout the internship.

First and foremost, I would like to thank Dr. N. Ranapratap Reddy, Principal of

Reva Institute of Technology and Management for providing me an

opportunity to carry out the internship work. I have special acknowledgements

for the supervising team at the Laxmi Hyundai and all the employees (service

center and the showroom team) of the organization. I would also like to thank

Mr. Jyoti Bhattarai (Marketing Manager) and Mr. Nirpesh Niroula (Asst.

Marketing Manager) for providing me a guidelines and supervising me to carry

out the works throughout my internship period.

Lastly, My special appreciation goes to Prof. Manjunath V.S for the support

during preparation of this report, untiring effort of going through the draft

reports and providing me with the valuable suggestions.

Thank you all


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EXECUITIVE SUMMARY

This report is a part of graduate programs under VISVESVARAYA TECHNOLOGICAL UNIVERSITY, (VTU)

that offers Management Programs. This is 12 week program designed to provide an opportunity for

a meaningful career-related experience in real organizational settings before graduating.

Among the various automobile companied, researcher opted for Laxmi Intercontinental P. Ltd.

Laxmi Intercontinental P. Ltd started importing and selling Hyundai brands of vehicle in Nepal after

the acquisition of distributorship in February 2009. . The project objective is to study Customer

Relation Management of Laxmi Hyundai. The report contain brief introduction of Laxmi Hyundai .The

Company’s main aim was not only the sales of Hyundai vehicles but also to provide quality after

sales service to its valued Hyundai Customers. In order to achieve this aim, it has opened showrooms

and service centers across Nepal. This project clearly mentions the objective of study and the

research methodology designed. Designed used in this project is exploratory and the source of

information is both Primary and secondary data. The data collection method used is structured with

the close end questionnaire.

Sampling shall be done on the basis of simple random sampling method. Based upon the structured

questionaries’ it will help in analyzing the obtained information or results which projected certain

findings and recommendations.

The project reveals the one of the important finding that Customer relationship management is a

business philosophy which provides a vision for the way the Laxmi Hyundai want to deal with the

customer. To deliver that vision, Laxmi Hyundai needs a CRM Strategy which gives shape to

marketing, customer service and data analysis activities. The major aim of the Laxmi Hyundai CRM

strategy is to maximize the profitable relationship with customer by increasing the value of the

relationship for the both the vendor and customer.


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CHAPTER-1

INTRODUCTION


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1.1 INTRODUCTION ABOUT THE INTERNSHIP

This internship project is conducted for partial fulfillment of the Masters in Business

administration degree awarded by VisvesvarayaTechnology University, Belgaum. The

internship is assigned of three hundred marks for the evaluation. The internship in specialized

field provides us with indepth understanding about the field, market exposure, and helps to

identify the potential career opportunities. Internship project is good for students to

understand real world implications of the sound academic knowledge gained in college. The

internship has given us the real world exposure to the professional life and shown us the

wider exploration of the career opportunities in management, information technology and

information management.

This internship as per the requirement of the MBA not only fulfills that very requirement but

has also developed me personally by getting myself acquainted with how the automobile

industry business regulates. This program has enhanced the skill and enthusiasm of the

students as they get knowledge of the business environments and to learn different aspects of

working mechanism that prevail in the organizations. Most of the subject learned during the

MBA has been well implemented during this internship program.

During this internship period I was introduced to the organizational structure and overall

functioning of the organization. I was the trainee staff to organization; I conducted research

on CRM and also learned a way to create more customer value & satisfaction.

1.2 CUSTOMER RELATIONSHIP MANAGEMENT

The changing business environment is characterized by economic liberalization, increasing

competition, high consumer choice, demanding customer, more emphasis on quality and

value of purchase etc.

All these changes have made today’s producer shift from traditional marketing to modern

marketing. Modern marketing calls for more than developing a product, pricing it, promoting

it and making it accessible to target customer. It demands building trust, a binding force and

value added relationship with the customers.

The process of developing a cooperative and collaborative relationship between the buyer and

seller is called customer relationship management shortly called CRM.


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1.3 NEED FOR THE STUDY

The biggest management challenge in the new millennium of liberalization and globalization

for a business is to serve and maintain good relationship with the king – the customer. In the

past producers took their customers for granted, because at that time the customers were not

demanding nor had alternative source of supply or suppliers. But today there is a radical

transformation.

The purpose of customer relation is not only for retaining the customers but also attracting

new customers and increasing the sales and also creating and maintenance of brand

awareness.It is a system for managing a company’s interactions with current and

future customersusing technology to organize, automate

andsynchronize sales, marketing, customer service, and technical support.Customer

perceptions attitudes and views regarding the products and services, along with suggestions

assume greater importance in the light of new entries and potential competitors, this study is

an attempt that directs to facilitate the management in marketing their future decisions in

promoting and creating a good image in the society.

• reduced costs, because the right things are being done (i.e., effective and efficient

operation)

• increased customer satisfaction, because they are getting exactly what they want (ie.

meeting and exceeding expectations)

• growth in numbers of customers

• highlighting poor operational processes

• long term profitability and sustainability

• A satisfied customer in 10 years will bring 100 more customers to the company.

• It costs 7 time more to attract a new customer than to serve an old one.

• 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s

principle).

1.4 OBJECTIVES OF THE STUDY

The main objectives are to determine the current relationship management level of the

customers with all aspects in regard to “LAXMI HYUNDAI Ltd.”.


http://en.wikipedia.org/wiki/Technical_support

http://en.wikipedia.org/wiki/Customer_service

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Sales

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Objectives in Detail:

1. To know the grievances among the customers about products &services, if any.

2. To identify different customers’ needs in regard to a Hyundai motor car’s services.

3. To identify what type of promotional strategy is suitable for the company to reach the

targeted customers.

4. Help the company to retain the Existing Customers

1.5 SCOPE OF THE STUDY

The scope of the study is to identify the customer relationship management levels towards

"Laxmi Hyundai Limited". The study was conducted for a period of 8 weeks covering

various places in Kathmandu. Primary data was collected from customers. Secondary data

was collected from company manuals, magazines and websites and so on. The study gathers

information about the customer's relation maintaining in various full range of Hyundai

vehicles from EON (passenger car) to Santa Fe (SUV) level in regard to Quality of service,

safety Tips, fuel saving tips, driving tips etc. Customer care service and other values added

services provided by the company. It is aimed at enlightening the company about different

steps to be taken up to increase the share of Hyundai motor company limited with regard

other competitors and also to make the company to provide better customer services.

1.6 RESEARCH METHODOLOGY

Project methodology is a way to systematically solve the research problem. It deals with the

objective of a research study, the method of defining the research problem, the type of data

collected, method used for data collecting and analyzing the data etc. The methodology

includes collection of primary and secondary data.

DATA COLLECTION:

1) Primary data: The primary data will be collection through structured questions and

also by directly interacting with the respondents. The questionnaire will be circulated

to the customer personally.

2) Secondary data: The source of secondary data includes:


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Books

Magazine

Company’s report and website.

Internet

So, to give a proper and formal approach to our research study I used the sampling technique.

SAMPLING TECHNIQUE

The sampling technique that adapted to conduct the survey was ‘Random Sampling’ and the

area of the research was concentrated in the city of Kathmandu . The survey was conducted

by interacting with Hyundai owners at Hyundai service center.

Sample units:

The sampling units for the study include the owner of the Hyundai cars.

Sample size:

The sample or the size included for conducting the study is50 customers of Hyundai.

The summary of the methodology are stated below.

Areas Kathmandu

Source of information Primary and Secondary data

Data collected method Structured Questionnaire’s

Types of question used Multiple choice

Target Owner of Hyundai vehicles

Sampling Method Random Sampling

Sample Size 65 car users out of which 50 Hyundai car

owners

1.7 LITERATURE REVIEW OF CUSTOMER MANAGEMENT RELATIONSHIP

The aim of Customer Relationship Management (CRM) is the, Total of the discounted life

time values of all of the firm’s customers. Clearly, the more loyal the customers, the higher


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the customer equity, rust. Zenithal and lemon distinguish three drivers of customer equity,

value equity and relationship equity.

ArvindSaxena (2010) Director and Board member (marketing and sales), Hyundai Motor

India (HMIL) “No company in automobile sector can fight competition on price. Companies

need to have the right product, distribution, CRM and after sales service network to grow.

Michael Cusumano, Steve Kahl and Fernaando Suarez (2008) in their research paper

“A theory of services in product industries”, has concluded that in many product oriented

industries, services have become increasingly important. In case of automobiles, many

automakers generate the vast majority of their profits from a service activity closely tied to

their product activity. The automobile industry overall generates a large portion of its profits

from other product-related service activities such as insurance and repairs. The authors

argued that despite the seeming importance of services, there is not much theory to help

researchers or practitioners explain the 3 conditions under which services matter in product

industries. The general view that emerges from the services literature is that services tend to

become important for manufacturing firms once their industries reach a mature stage.

Steve Kahl and Fernaando Suarez (2008) in their research paper “Product, Process, and

Service: A New Industry Lifecycle Model”, has concluded that Existing models of industry

lifecycle evolution tend to focus on changes in the products and processes and largely

overlook the dynamics of services, but increasingly, the revenues of many firms are

becoming dominated by sales of services rather than products, or products sold with services

to gain competitive differentiation in markets marked by increasing product commoditization.

Abhijeet Singh (2011) Tata Motors uses a customer relationship management and dealer

management system (CRM-DMS) which integrates one of the largest applications in the

automobile industry, linking more than 1200 dealers across India.CRM DOS has helped Tata

Motors to improve its inventory management, tax calculation and pricing. This system has

also proved to be beneficial to dealers because it has reduced their working capital cost

Gordon Fullerton (2006), “Putting relationship in CRM”, that JEEP, a division of Daimler

Chrysler Automobile Company, has served a classic example of CRM program that provides


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a considerable value to both the customers and the firm by developing a program exclusively

for jeep owners and fostered a community that is highly effectively committed to the product,

the brand and the customers.

Kevin Keller (2012) Caterpillar has become a leading firm by maximizing the total customer

value with the help of effective CRM, best after sales service in the industry and better

trained dealer. This allows the firm to command a premium price of 10% to 20% higher than

competitors such as Volvo, Komatsu etc.

1.8 LIMITATIONS OF THE STUDY

The study is subjected to the following limitations

1. A portion of the responds contacted were no precise and genuine in giving their

opinion.

2. If accidently they had badly, experience at one instance, they would work very poor.

3. To measure the exact level of customer relation the sample size was small.

4. Short time period was inadequate for conducting detailed study among the customers.

5. The study was restricted to Kathmandu only.


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CHAPTER – 2

INDUSTRY AND COMPANY

PROFILE

2.1 INTRODUCTION TO AUTOMOBILE INDUSTRY


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Automobile, self-propelled vehicle used primarily on public roads but adaptable to other

surfaces. Automobiles changed the world during the 20th century, particularly in the United

States and other industrialized nations. From the growth of suburbs to the development of

elaborate road and highway systems, the so-called horseless carriage has forever altered the

modern landscape. The manufacture, sale, and servicing of automobiles have become key

elements of industrial economies. But along with greater mobility and job creation, the

automobile has brought noise and air pollution and automobile accidents rank among the

leading causes of death and injury throughout the world. But for better or worse, the 1900s

can be called the Age of the Automobile and cars will no doubt continue to shape our culture

and economy well into the 21st century. Automobiles are classified by size, style, number of

doors, and intended use. The typical automobile, also called a car, auto, motorcar, and

passenger car, has four wheels and can carry up to six people, including a driver. Larger

vehicles designed to carry more passengers are called vans, minivans, omnibuses, or buses.

Those used to carry cargo are called pickups or trucks, depending on their size and design.

Minivans are van-style vehicles built on a passenger car frame that can usually carry up to

eight passengers. Sport-utility vehicles, also known as SUVs, are more rugged than passenger

cars and are designed for driving in mud or snow.

In 2012 manufacturing plant in more than 25 countries produced 73.2 million passenger

cars .The automobile is built around an origin various systems supply the origin with fuel,

cool it daring operation, lubricate its moving parts and remove exhaust gases it creates. The

origin produces mechanical power that is transmitted to the automobile’s wheels through

adverting which includes a transmission. One or more dive shafts, a differential gear and

axles. Suspension system which includes sparing and shock absorbers, customs the ride and

help protect the vehicle from being damaged by bumps heavy loads and other series. Wheel

and tares support vehicles on the road way and when rotated by powered axles; propel the

vehicle forward or backward Steering speed. An electrical system starts and operates the

engine monitor and control many aspects of the vehicle operation and powers such

components as head light and radios. Safety features such as bumpers air bugs and seat bells

help protect occupants in an accident

2.1.1 HISTORY OF AUTOMOBILE INDUSTRY


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The history of the automobile actually began about 4100 years ago when the first wheel was

used to transportation in India. In the early 15th century Portuguese arrived in china and the

interaction of the two cultures leaded to variety of new technologies including the creation of

a wheel. By the 1600’s small steam powered engine models had been developed but it was

another century before a full sized engine powered vehicle was created. IN 1769 French

Army Officer Captain Nicolas joseph Cugsnot built what has been called the first automobile

cugnotsparel wheeler steam powered vehicle carried four people. Designed to move artillery

pieces. It has a top speed of a title more than 3.2km/h and had a stop every 20 minutes to

build up a fresh head of steam. As easily in 1801 successful but very heavy steam automobile

type introduced in England laws barred them from public road and forced their owners to run

them like train or private tracks their owners to run them like train or private tracks in 1802 a

steam powered coach designed by British Engineer. Richard Trethvickjourned more than

160km from corn wall to London.Steam powered caught the attention of other vehicle

builders. In 1804, American inventor Oliver Evans built a steam powered car in 1828. British

inventor a valterHandcock build a series of steam carriages in the mid 1830’s thus were used

for the first omnibus service in London. By the mid 1800’s England had an extensive network

of coach line. Horse-drawn stagecoach companies and the new rail road companies pressured

the British parliament to approve heavy it’s on steam-powered road vehicles. The tolls

quickly drove a steam quickly drove a steam coach operators out of business.During the early

20th century steam cars were popular in the United states. Most famous was the Stanley

steamer, built by American Twin brothers Freelan and Francis Stanley. A Stanley steamer

established a world land speed record in 1906 of 205.44 km /h. Manufactures produced about

125 models of steam powered automobiles, including the Stanley until 1932.The first

successful self-propelled road vehicle was a steam automobile invented in 1770 by the

French engineer Nicolas Joseph Cugsnot.

2.2 INTRODUCTION OF HYUNDAI MOTOR COMPANY

The Hyundai Motor Company is a South Korean multinational automaker headquartered

in Seoul, South Korea. The company was founded in 1967 and along with its 32.8% owned

subsidiary, Kia Motors, together comprise the Hyundai Motor Group, which is the world's

fifth largest automaker based on annual vehicle sales in 2012. In 2008, Hyundai Motor

(without Kia) was ranked as the eighth largest automaker. As of 2010, the Company sold

over 3.6 million vehicles worldwide. Hyundai operates the world's largest integrated


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automobile manufacturing facility in Ulsan, South Korea, which has an annual production

capacity of 1.6 million units. The company employs about 75,000 people worldwide.

Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.

Some Basic Highlights of Hyundai Motors:

Native name 현대자동차주식회사

Type Public

Traded as KRX: 005380

LSE: HYUD

Industry Automotive

Founded December 29, 1967

Founder(s) Chung Ju-yung

Headquarters Seoul, South Korea

Area served Worldwide

Key people Chung Mong-koo (Chairman & CEO)

Products Automobiles, commercial vehicles, engines

Production

output

2,943,529 units (2012)

Revenue US$ 84 billion (2012)

Net income US$ 9 billion (2012)

Total assets US$ 109 billion (2012)


http://en.wikipedia.org/wiki/File:Hyundai_Motor_Group_logo.svg

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Total equity US$ 43 billion (2012)

Employees 75,000 (2012)

Website worldwide.hyundai.com

2.2.1 VISION:

“Our Team provides value for your future”

2.2.2 MISSION:

To create exceptional automotive value for our customers by harmoniously blending safety,

quality and efficiency. With our diverse team, we will provide responsible stewardship to our

community and environment while achieving stability and security now and for future

generations.

2.2.3 HYUNDAI’S BRAND SLOGAN:

“NEW THINKING - NEW POSSIBILITIES”

A brand slogan embodies the essence of a brand, from its philosophy to its vision and

identity. Hyundai’s brand slogan -- “NEW THINKING. NEW POSSIBILITIES.” reflects

the will of Hyundai Motor Company to create new possibilities to benefit the world and its

people by encouraging and developing new thinking. All members of Hyundai have the brand

slogan deeply engraved in their hearts as they move forward in their effort to provide new

values and experiences desired by today’s customers through innovative ways that are unique

to the brand, driven by new thinking about customers and cars.

2.2.4 QUALITY POLICY

Top priority to customer satisfaction

The Company will provide only those products meeting relevant customer

requirements & international standards and accordingly satisfy every customer.


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Continuous improvement

The Company will make continuous quality improvements through unceasing R&D

efforts & new technologies and accordingly minimize the quality cost.

Quality mind

The company will encourage each employee’s quality and accordingly accomplish the

error-free quality.

Quality mind creation

The company will create such premium quality value that can lead the global

automatic transmission market.

2.2.5 AREA OF OPERATION

Hyundai is striving for that next level to become Global No.1 Automobile Company through

practicing Industry Leadership and through implementing its strategy to expand its global

coverage.

The company is dedicated to enabling everyone around the world to use Hyundai,

world’snumber one map solution technology. Its expertise is the basis for its strategy of

growth alongside the Hyundai Motor Group and, indeed, its global network as a whole,

through working with national and international hardware/IT/Contents/Service providers.


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Regional operation Total coverage countries

Europe 30

Middle East 16

Asia 38

Africa 38

North America 3

Central and south America 41

2.2.6 PRODUCTS OF THE HYUNDAI FAMILY

A. CARS

1. SANTRO

The new Santro Xing sports stunning design changes which

include refreshing exteriors and new look luxurious

interiors. The new front radiator grille, the full wheel cover

and the rear spoiler makes the new Santro Xing aesthetically

more appealing and sporty. With metallic touches at multiple locations and plush new two

tone beige and brown color scheme, the new Santro Xing adds elegance and style to the

existing great looks.

Hyundai Santro was adjudged Most Dependable compact Car by JD Power Asia Pacific

2008. Santro bagged the number one position in the compact car segment in the Vehicle

Dependability Study (VDS) conducted by JD Power Asia Pacific 2008.


HYUNDAI FAMILY

SUV Passenger car

SANTA FE TUCSON

EON TUCSON

accent

SANTRO I10 I20

veloster

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Overall length (mm) 3565Overall weight (mm) 1525Overall height(mm) 1590Overall wheelbase(mm) 2380Gross vehicle weight (kg) 1300Fuel tank capacity(l) 35Min. turning Radius(m) 4.4Seating capacity 5 personDisplacement 1086 ccManual 5 speed forward with overdrive in 4th& 5th

Automatic Electronically controlled 4 speed forward with overdrive in 4th

2. i10

A world of perfection awaits you - The world of the all

new Next Gen i10. From the cutting edge VTVT

technology behind the engine to the fluid from of its new

sleek design and stylish interiors, the new i10 is clearly

more than just a car. It's a testament to perfection. The aggressive, modern & sleek exteriors,

new 2-tone beige and light brown interiors with blue illumination and chrome accents

premium feel and make it a car like no other

Overall length (mm) 3585Overall weight (mm) 1595Overall height(mm) 1550Overall wheelbase(mm) 2380Ground clearance 165Fuel tank capacity(l) 35Max. power (ps/rpm) 69/5,500Max torque(kgm/rpm) 10.1/4,500Manual 5 speed forward with overdrive in 4th& 5th

Front brake Ventilated DiscRear brake drum

3. I20


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Overall length (mm) 3395Overall weight (mm) 1710Overall height(mm) 1505Overall wheelbase(mm) 2525Fuel tank capacity(l) 45Mileage 4.4Max. power (ps/rpm) 84/600Max torque(kgm/rpm) 11.6/4,000Manual 5 speed forward with overdrive in 4th& 5th

Front brake DiscRear brake drumSteel wheel Era,MagnaAlloy wheel Sportz,asta,

The luxury hatch is hotter than ever in its new avatar with Uber Features, Uber Style and

Uber Power. The all new i-Gen i20 is your ticket to the Uber Life with attention to detail that

makes it not just a style statement but also a lifestyle statement.

4. Accent

The shape is fresh and modern, but the name is one that the customer knowsand can trust.

This is Hyundai Accent, the latest generation of Hyundai's subcompact family car. It has all

the time-honored qualities you have come to expect of a Hyundai - reliability and durability,

innovation and practicality, safety and economy - clothed in an eyecatching new profile.

Accent, where pedigree is allied to progress. Hyundai Accent has been designed keeping in

mind the customer expectations from a true luxury sedan. With its smooth blend of design, a

wide and bold grille in chrome, bonnet with character lines gives you a true luxury feel.

Overall length (mm) 4280Overall weight (mm) 1695Overall height(mm) 1470Overall wheelbase(mm) 2500


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Fuel tank capacity(l) 45.05Displacement 1399 ccTurning radius(m) 5.1Max. power (ps/rpm) 95/6000Max torque(kgm/rpm) 12.7/4,700Manual 5 speed forwardAutomatic 4 speed forwardFront brake Disc9verfilated with floating caliper and pad

wear sensor)Rear brake Drum type (CBS)

B. SUV 1. SANTA FE

Overall length (mm) 4690Overall weight (mm) 1880Overall height(mm) 1680Overall wheelbase(mm) 2700Ground clearance 220Fuel tank capacity(l) 64Displacement 2199Turning radius(m) 5.1Max. power (ps/rpm) 197/3800Max torque(kgm./rpm) 43/1800-2500Manual 6 speed forwardFront brake Disc9verfilated with floating caliper and pad

wear sensor)Rear brake Solid discDrive train (2wd)/MANUAL 169 R 2.2 VGTDrive train (4wd)/MANUAL 174 R2.2 VGT

Time and opportunities are given to everyone. The difference in happiness comes from

whether we "seize" or "miss" the values, both big and small, that every moment of our

everyday lives has to offer. Storm edge the concept behind the design of the Santa fe, which

captured the powerful yet fragile moment of nature in motion during the rise and fall of a

storm. It seems to be telling us that the brilliant moments that we should not miss are, in fact,

right before our eyes.

2. Tucson


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The company dream was to find the automotive equivalent of this incomparable feeling. To give substance to fluidity. To engage the senses and translate the many shades of urban life into the most natural, intuitive vehicle there is. It’s a dream that’s finally taken shape.

Overall length (mm) 4410Overall weight (mm) 1820Overall height(mm) 1655Overall wheelbase(mm) 2640Ground clearance 220Fuel tank capacity(l) 64Type Petrol dieselSeating capacity 5 including driver 5including driver

Max. power (ps/rpm) 166/5,500 177/4000Max torque(kgm/rpm) 20.146/4,000 39/1800-2500

Manual 5 speed forward 6 speedFront brake Ventilated discRear brake Solid disc

2.3 INTRODUCTION OF LAXMI HYUNDAI NEPAL

Laxmi Intercontinental Pvt. Ltd. is a sole importer and distributor of Hyundai Vehicles for

Nepal. It deals with a full range of Hyundai vehicles from Santro (passenger car) to Santa Fe

(SUV). Laxmi Intercontinental Pvt. Ltd. started importing and selling Hyundai brands of

vehicle in Nepal after the acquisition of distributorship in February 2009. The company's

main aim was not only the sales of Hyundai vehicles but also to provide quality after sales


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service to its valued Hyundai Customers. In order to achieve this aim, Laxmi Hyundai

Company has opened its showrooms and service centers across Nepal.

Laxmi Hyundai is continuously working towards providing its existing as well as prospective

customers with quality service whether it is sales or after sales services. It has established

showrooms in the heart of Kathmandu valley following Hyundai standard guidelines where

customer would feel “a difference” with the different kinds of buying experience. Sales staff

appointed in the showroom is friendly, well informed about Hyundai vehicles and very

passionate about their work. They make sure that customers feel comfortable and satisfied.

The Company's showrooms have been opened in different strategic locations of the kingdom

(Kathmandu) with the intention of providing customers an improved service in terms of

quality, space and ambience. In these showrooms, customers feel a pleasurable buying-

experience.

Similarly, the Company's after sales service and parts facilities follows the Hyundai's Global

Auto Servicing offering the full range of after sales service facilities through its high tech

equipment’s and well trained and fully motivated technicians.

Company Profile

Name of Organization Laxmi Hyundai

Year of Establishment 2009

Nature of business Sole distributor of Hyundai

Number of Employees 150 people

Turnover 227 million

Address Thapathali, Kathmandu, Nepal

Executive Director AnjanShrestha

General Manager NirakarShrestha

Area of Marketing JoytiBhattarai

2.4 DEALERS NETWORK OF LAXMI HYUNDAI

In order to capitalize the growing automobile market outside the Kathmandu valley, it has

also established sub-dealers at various locations of the country. Table below presents the

locations of the sub-dealers of Laxmi Hyundai Company throughout the country:

S.N. Dealers/Sub-Dealers Locations Development Region


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1. Dhangadi Far-western Development Region

2. Dang

Mid-western Development Region3. Nepalgunj

4. Butwal

Western Development Region5. Pokhara

6. Bhairahawa

7. Narayangadh

Central Development Region

8. Kathmandu

9. Banepa

10. Birgunj

11. Damak

Eastern Development Region12. Birtamod

The table above shows that the Laxmi Hyundai Company has covered all the five

development regions of the country and they have dealers/sub-dealers in all strategic market

locations of the country. Majorities of the sub-dealers locations are in Central region (4 nos)

followed by Western region (3 nos), Eastern region (2 nos), and one each in Mid and Far

western regions.


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Figure 2.1: Dealers Network in Nepal

2.5 KEY FUNCTIONS OF LAXMI HYUNDAI

The following are the major key functions of the company:

Importing of Hyundai Vehicles from Korea and India

Distributing those vehicles throughout the country Nepal through dealers

Providing customer’s quality of services

Company's showrooms have been opened with the intention of providing customers

improved services in terms of timeliness, quality, space and ambience

Helping them in getting loans from Bank

Providing quality of information in terms of vehicle whenever needed


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Figure 2.2: Laxmi Hyundai Showroom

Figure 2.3: Waiting room at Laxmi Hyundai Nepal

Figure 2.4: Major Vehicles (models/brand) deal by Laxmi Hyundai Nepal


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2.6 COMPETITOR’S INFORMATION

There are a numbers of dealers/importers dealing with different brands of vehicles in Nepal.

They import these vehicles mainly from India and other countries such as Japan, Korea and

Check Republic; however, majorities of the vehicles are imported from India. The major

dealers/importers of different vehicle brands in Nepal are as follows:

Sipradi Trading Private Ltd (STPL) has been the exclusive distributor of Tata Motors Ltd

in Nepal since 1982. STPL is an ISO 9001:2008 certified company. STPL sells and services

the full range of Tata Motors’ commercial and passenger vehicles. The company has the

largest sales and service distribution network throughout Nepal with 9 sales offices and 5

regional service centres.

HansrajHulaschand and Company (HH Company), the authorized distributor of Daihatsu

motors for Nepal, has been selling Daihatsu cars in Nepal for years. They directly import the

motors from Japan.

Sayakar Ltd imports HONDA vehicles from Japan

Continental Trading Enterprises has been under operation for over two decades delivering

the best in class brands KIA vehicles and unbridled service to Nepal from Korea.

Chaudhary Group (CG) Company imports and deals MARUTI SUZUKI vehicles from

India

MAW Enterprises Pvt. Ltd. imports and deals Skoda vehicles from India and Check

Republic

Pooja International Pvt. Ltd. imports and deals Volkswagen vehicles from India

Agni Incorporated Pvt. Ltd imports and deals Mahindra vehicles from India

Golcha Group imports and deals Ford vehicles from India

Batas Group imports and deals Fiat vehicles from India


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Laxmi Intercontinental Pvt. Ltd deals HYUNDAI vehicles imported from Korea and India

Company/DealerVehicles Brand

ImportedImported from

Laxmi intercontinental HYUNDAI Korea and India

Continental Trading Enterprises KIA Korea

Chaudhary Group Company MARUTI SUZUKI India

Kumara Auto Centre MITSUBISHI Japan

Sayakar Ltd. HONDA Japan

HansrajHulaschand and Company DAIHATSU Japan

United Traders Syndicate TOYOTA Japan

Sipradi Trading Pvt. Ltd. TATA Motors India

MAW Enterprises Pvt. Ltd Skoda India and Check Republic

Pooja International Pvt. Ltd. Volkswagen India

Agni Incorporated Pvt. Ltd Mahindra India

Golcha Group Ford India

Batas Group Fiat India

Source: Collected from respective websites of dealers

MAJOR IMPORTERS/DEALERS OF DIFFERENT VEHICLE BRANDS IN NEPAL.


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2.7 SWOT ANALYSIS OF THE COMPANY

SWOT analysis of the Laxmi Hyundai Company identifies and analyses the main internal and

external factors that will influence the future direction and success of the organization and its

business. It comprises of strengths and weaknesses which are the “internal factors” and

opportunities and threats which are the “external factors” that affects the organization. Such

analysis helps managers in strategic planning.

SWOT analysis of Laxmi Hyundai Company is as follow:

STRENGTH OPPORTUNITIES

Managed by experts

Many Branches and dealers

Competent Human Resource

Well defined policies, rules and regulations

Better service/customer satisfaction

Profound goodwill and customers trust

International Affiliation

Good reputation and trust among the

customers and dealers

Increased customer base

decline in bank interest rates on auto loans

along with easy financing services

Rapid road widening and extension

WEAKNESS THREAT

-Centralized decision making

Subjective employee Appraisal System

Lack of stable government

No clear government rules and regulations

Heavy custom duties and taxes on vehicles

import

heightened competition in the sector


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2.8 FUTURE GROWTH AND PROSPECTS

The company has the opportunity of becoming the largest company in Nepal by establishing

large number of show rooms in rural and urban areas. Providing good service facility to the

customers. Introducing new technology adopted for four wheelers .Opening large service

branches. Introducing high mileage giving cars and less cost. Adopting international

standards in its services and understanding global requirements.Hyundai gains are coming

from the small utility segment. Nationally, utilities are expected to grow at almost twice the

rate of the overall industry during the next five years.Market share of Hyundai in Nepal is

growing at a faster rate than any of its competitors at present and will lead to a number one

automobile importer company in near future.


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CHAPTER: 3

THEORETICAL BACKGROUND

OF THE STUDY


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3.1 CUSTOMER RELATIONSHIP MANGEMENT

According to Ashokadutt head of Citi Bank “the idea of CRM is to know the individual

customer intimately, so that the company has a customized product ready for him even

before he asks for it.”

Many companies are intent on developing stronger bonds with their customers-called

“Customer Relationship Management (CRM). This is the process of managing detailed

information about individual customer and carefully managing all the customers “touch

points” with the aim of maximizing customer loyalty.

We can now see the importance of just finding customers, but of keeping and growing them

as well. Relationship marketing is oriented toward long term. Today’s smart companies not

only want to create customers, they want to “own” them for life.

The aim of Customer Relationship Management (CRM) is to produce high customer

equity is the total of the discounted lifetime values of all of the firm’s customer equity, rust;

Zenithal and Lemon distinguish three drivers of customer equity; value equity, and

relationship equity.

Customer relationship management (CRM) is a system for managing a company’s

interactions with current and future customers. It involves using technology to organize,

automate and synchronize sales, marketing, customer service, and technical support

3.2 TYPES

Marketing and Customer Service

CRM systems track and measure marketing campaigns over multiple networks. These

systems can track customer analysis by customer clicks and sales. Places where CRM is used

include call centers, heavily used in social media, direct mail, data storage files, banks, and

customer data queries.

CRM in customer contact centers

CRM systems are customer relationship management platforms. It is a platform for

progressing the payments and other related query management. Their goal is to track, record,

store in databases, and then data mine the information in a way that increases customer


http://en.wikipedia.org/wiki/Technical_support

http://en.wikipedia.org/wiki/Customer_service

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Customers

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relations The CRM codifies the interactions between you and your customers, So that you

can maximize sales and profits using analytics, to give the users as much information on

where to focus your marketing, customer service to maximize revenue, and decrease idle and

unproductive contact with your customers. The CRM software is installed in the contact

centers, and help direct customers to the right agent or self-empowered knowledge. CRM

software can also be used to identify and reward loyal customers over a period of time.

CRM in B2B market

The modern environment requires one business to interact with another via the web.

According to a Sweeney Group definition, CRM is “all the tools, technologies and

procedures to manage, improve, or facilitate sales, support and related interactions with

customers, prospects, and business partners throughout the enterprise”. It assumes that CRM

is involved in every B2B transaction

Despite the general notion that CRM systems were created for the customer-centric

businesses, they can also be applied to B2B environments to streamline and improve

customer management conditions. B2C and B2B CRM systems are not created equally and

different CRM software applies to B2B and B2C conditions. B2B relationships usually have

longer maturity times than B2C relationships. For the best level of CRM operation in a B2B

environment, the software must be personalized and delivered at individual levels.

3.3 FOUR C’S OF CUSTOMER RELATIONSHIP MANAGEMENT

Correlate:

A series of transaction and interaction that make up a dialogue between customer\channel\end

user and organization.

Combine:

The mapping and management interaction points between a customer\channel\end user and

organization.

Cognize:

The insight gained through capture and analysis of detailed information it to create

continuous learning from the data ware house and knowledge base that is created, integrated

and analyzed.


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Connect:

The application of insight to create relevant interaction or communication with consumers,

customers, channels, suppliers and partners that build value relationship.

CRM, H. Peer Mahmed, A. Sagadevan

3.4 CUSTOMER RELATIONSHIP MANAGEMENT CYCLE

UNDERSTAND AND DIFFERENTIATE

We cannot have a relationship with customers unless we understand them what they value,

what types of service are important to them, how and when they like to interact, and what

they want to buy. True understanding is based on a combination of detailed analysis and

interaction. Several activities are important:

Profiling to understand demographics, purchase patterns and channel preference.

Segmentation to identify logical unique groups of customers that tend to look alike and

behave in a similar fashion. While the promise of "one-to-one" marketing sounds good, we


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have not seen many organizations that have mastered the art of treating each customer

uniquely. Identification of actionable segments is a practical place to start.

Primary research to capture needs and attitudes.

Customer valuation to understand profitability, as well as lifetime value or long-term

potential. Value may also be based on the customer's ability or inclination to refer other

profitable customers.

Analysis and research alone, however, are insufficient. To create and foster a relationship, we

have to act on what we learn about customers. Customers need to see that we are

differentiating our service and communications based both on what we've learned

independently and on what they've told us.

At the same time, differentiation should be based on the value customers are expected to

deliver.

DEVELOP AND CUSTOMIZE

In the product-oriented world of yesterday, companies developed products and services and

expected customers to buy them. In a customer-focused world, product and channel

development have to follow the customer's lead. Organizations are increasingly developing

products and services, and even new channels, based on customer needs and service

expectations.

Most organizations today are not able to cost-effectively customize products for individual

customers. However, products, services, channels and media can be customized based on the

needs of quantitative customer segments. The extent of customization should be based on the

potential value delivered by the customer segment.

Interact and Deliver

Interaction is also a critical component of a successful CRM initiative. It is important to

remember that interaction doesn't just occur through marketing and sales channels and media;

customers interact in many different ways with many different areas of the organization

including distribution and shipping, customer service and online.


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To foster relationships, organizations need to insure that:

All areas of the organization have easy access to relevant, actionable customer information.

All areas are trained how to use customer information to tailor interactions based on both

customer needs and potential customer value.

With access to information and appropriate training, organizations will be prepared to

steadily increase the value they deliver to customers. Delivering value is a cornerstone of the

relationship. And remember, value is not just based on the price of the product or the

discounts offered. In fact, customer perceptions of value are based on a number of factors

including the quality of products and services, convenience, speed, ease of use,

responsiveness and service excellence.

Acquire and Retain

The more we learn about customers, the easier it is to pinpoint those that are producing the

greatest value for the organization. Those are the customers and customer segments that we

want to clone in our prospecting and acquisition efforts. And, because we continue to learn

about what is valuable to each segment, we'll be much more likely to score a "win" with the

right channel, right media, right product, right offer, right timing and most relevant message.

Successful customer retention basically involves getting it "right" on an ongoing basis.

Successful customer retention is based very simply on the organization's ability to constantly

deliver on three principles:

Maintain interaction; never stop listening.

Continue to deliver on the customer's definition of value.

Remember that customers change as they move through differing life stages; be alert for the

changes and be prepared to modify the service and value proposition as they change.

And so the cycle continues. As you move from one stage to the next, you gain insight and

understanding that enhances your subsequent efforts. Your development initiatives

simultaneously become increasingly sophisticated as does your implementation of CRM

processes.


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CHAPTER – 4

DATA ANALYSIS

&

INTERPRETATION


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Table 4.1: Table showing the number of people who possessed a car.

Possessing a car In numbers In percentage

Yes 50 77

No 15 23

Total 65 100

Analysis: Out of the 65 respondents 50 of them possessed a car and the rest of 15 didn’t

possess a car.

Chart 4.1:Table showing the number of people who possessed a car.

77%

23%

People Having Car

yesno

Interpretation: Majority of the respondent i.e. 77% of them were the owner of the car.


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Table 4.2: Table showing the Source of Awareness.

Awareness In numbers In percentage

Newspaper/magazines 32 60

Social Media 03 8

Friends 11 18

Websites 02 10

Other 01 4

Total 50 100

Analysis: From the above table, 60% said that they became awareness through the

‘Newspaper/magazine’ advertisement , 18% said that they came to know about the Laxmi

Hyundai through friends and relatives ,8% said through ‘social media’ , 10% said it is

‘website’ and only ‘4%’ specified as others.

Chart 4.2: Chart showing the Source of Awareness

Interpretation: Majority of the respondent i.e. 60% found that the newspaper and magazine

advertisement has played a major role in creating awareness among the people.


60%

8%

18%

10% 4%

Source Of Awareness

Newspaper /MagazinesSocial MediaFriends WebsitesOther

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Table 4.3:Table showing how respondent find the Ambience of the showroom.

Ambience In numbers In percentage

Excellent 25 50

Good 15 30

Satisfactory 08 16

Poor 02 04

Very poor 0 0

Total 50 100

Analysis:50 % of respondent opting that the ambience of the showroom is “excellent”, 30%

of them found it “good”.16 % of them stated it to be “satisfactory” and very less 4% stated it

is “verypoor”.

Chart 4.3: Chart showing how respondent find the Ambience of this showroom.

50%

30%

16%4%

Ambience Of The Showroom

ExcellentGoodSatifactoryPoorVery poor

Interpretation: Majority of the respondents stated that the ambience of the showroom is

"excellent" as stated by 50% of the customers which is a good indicator for the showroom.


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Table 4.4: Table showing the staff responsiveness towards the customer at showroom.

Staff response In numbers In percentage

Very Cooperative 09 18

Cooperative 11 22

Responsive 28 56

Non-cooperative 02 4

Highly non-Cooperative 00 00

Total 50 100

Analysis: The above table shows that, most of the customer i.e.18 % of them found the show

room staff to be “very cooperative” ,22% stated as“co-operative”, a major percentage i.e.

56% of them felt the staff is ‘responsive’ than cooperative (respond only when asked, without

having any personal initiation),4% of them rated the staff to be “non-cooperative” and none

of them rated as “highly non-cooperative”.

Chart 4.4: Chart showing the staff responsiveness towards the customer at showroom.

Interpretation: Majority of staff response is found to be "Responsive" rather than co-

operative. It seems Staff doesn't respond until asked for which may lead to negative impact

on the perception of the customers about this showroom.


18%

22%56%

4%

Staff Response

Very co-operativeCo-operativeResponsiveNon-CooperativeHighly non-Cooperative

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Table 4.5: Table showing the Time taken by receptionist in attending a customer call.

Time Taken In numbers In percentage

Very quick 4 8

Quick 08 17

Reasonable 31 63

Delayed 04 08

Very much Delayed 02 04

Total 50 100

Analysis: According to above table it shows that the 8% of the respondent stated it as “ very

quick”,17% of respondent stated it as “quick”, time taken is “reasonable” as stated by 63%

of the respondent 8% of them found it to be “delayed”, 4% said it is “ very much delayed “.

Chart 4.5: Table showing the Time taken by receptionist in attending a customer call

Interpretation: Time taken to provide the services required by the customers is considered

as "reasonable" by the most of the respondent (i.e. 63%).


8% 16%

63%

8% 4%

Time Taken In Attending a Call

Very QuickQuickResonableDelayedVery much Delayed

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Table 4.6: Table showing the Sales executive role in explanation the features of car to

customer.

Explanation IN NUMBERS IN PERCENTAGE

Convincing 12 24

Satisfactory 18 36

Unless asked 20 40

Total 50 100

Analysis: Out of the 50 respondent , 24% of them felt the explanation to be

“convincing”,36% felt it as “ satisfactory “ and major percentage 40% felt it to be “ non-

convincing” .

Chart 4.6: Chart showing the Sales executive role in explaining the features of car to

customer

24%

36%

40%

Sales Executive Performance

ConvincingSatisfactoryUnless asked

Interpretation: Majority of the respondent i.e. 40% found the sales executive don’t explain

the entire feature unless asked by the customer.


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Table 4.7: Table showing the respondent opinion about the process involved in providing

financial facilities.

Processing procedure IN NUMBERS IN PERCENTAGE

Very simple 00 00

Simple 01 2

Moderate 6 12

Complex 9 18

Very Complex 34 68

Total 50 100

Analysis: According to the above table 68% of the respondent stated that “ process “

involved for financial facilities are “ very complex”,18% stated it to be “complex “,12% to be

“moderate” and Only 2% of them stated it to be “simple”.

Chart 4.7: Chart showing the respondent opinion about the process involved in providing

financial facilities.

Interpretation: Majority of the respondent i.e. 68% considered the process to be very

complex. . They didn’t find it to be very convenient and simple.


2%12%

18%

68%

Process Involved in Providing Financial Facilities

very simpleSimpleModerateComplexVery Complex

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Table 4.8: Table showing availability of Color variants for customer in the showroom.

Availability of colors In numbers In percentage

Wide 06 12

Limited 33 66

Very few 11 22

Total 50 100

Analysis: From the above table it can be understood that ‘limited range’ of colors is available

in this showroom as stated by 66% of the respondent, 12% stated that this showroom contains

‘wide colors” and 22% stated “very few range of color”.

Chart 4.8: Chart showing availability of Color variants for customer in the showroom.

Interpretation: Majority of the respondent i.e.66% stated that the availability of varied

colors in this showroom seems to be limited .It shows that customer is given a limited choice

in matter of color of the car.


12%

66%

22%

Availability Of Colors

WideLimitedVery few

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Table 4.9: Table showing respondent likelinessin suggesting to other friends & relatives.

Suggesting to friends In numbers In percentage

Yes 38 76

No 12 24

Total 50 100

Analysis: According to above table it shows that, 76% of the customers are very likely to

suggest this showroom to their friends / relatives. The 24% of the customers are reluctant to

suggest these showrooms to friends/relatives.

Chart 4.9: Chartshowing respondent likeliness in suggesting to other friends & relatives.

76%

24%

Customer Suggesting To Other

yesNo

Interpretation: Majority of the respondents i.e. 76% are ready to suggest the car to other. It

is an indication of high satisfaction level andcustomers are happy with the service provided

by the showroom.


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Table 4.10: Table showing the reason for suggesting the showroom to others.

Reasons In numbers In percentage

Quick Service 12 24

Timely Response 9 18

Friendly Atmosphere 7 14

Trust Worthiness 19 38

Infrastructure 03 6

Total 50 100

Analysis: 38% of the respondents stated the reasons of “trust worthiness”,24% of the

respondents stated “ quick service” , 18% respondent stated “Timely response”, 14% state

friendly atmosphere and only 6% for infrastructure,

Chart 4.10: Chart showing the reason for suggesting the showroom to others.

24%

18%14%

38%

6%

Reason to Suggest Other

quick service timely responsefriendly atmospheretrust wortinessinfrastructure

Interpretation: Majority of the respondent i.e. 38% considered the trust worthiness to be the

reason for suggesting the showroom to other.


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Table 4.11: Table showing the customer opinion about the equipment’s efficiency in the

showroom for the purpose of maintenance of the cars.

Ability of showroom In numbers In percentage

Excellent 19 38

Good 06 12

Satisfactory 14 28

Poor 07 14

Very poor 04 8

Total 50 100

Analysis: 38% of the respondent rated it as excellent as compared to other showroom another

majority of respondents i.e. 28% of them stated it as “satisfactory”. 14% of the respondent

said it is “poor”. 12 % stated as “good” and only 8% stated “very poor”.

Chart 4.11: Chart showing the customer opinion about the equipment presence in the

showroom for the purpose of maintenance of the cars.

38%

12%28%

14% 8%

Equipments efficiency

ExcellentGoodSatisfatoryPoorVery Poor

Interpretation: Out of 50 customers, Majority of customer stated thatthe showroom has

excellent equipment in maintaining the cars.


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Table 4.12: Table showing any inconvenience felt by customer after leaving their car for

service.

Inconvenience felt In numbers In percentage

Never 33 66

Sometimes 18 34

Always 0 0

Total 50 100

Analysis: 66% of the respondent have “never” felt any inconvenience, whereas 34% have felt

“sometime” and none of them have felt “always”.

Chart 4.12: Chart showing any inconvenience felt by customer after leaving their car for

service.

.

Interpretation: As majority of 66% of respondent had positive attitude towards the customer

service of Laxmi Hyundai.


66%

34%

Inconvenience Felt by Customer

NeverSometimesAlways

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Table 4.13: Table showing whether the customer had raised any complaints against the

problem faced by him/her to the management.

Complaint Raised In numbers In percentage

Yes 16 30

No 34 70

Total 50 100

Analysis: As 30% respondent say that they have raised some issue where as 70% of the

respondent says that they haven’t raised any issue till date.

Chart 4.13: Chart showing whether the customer had raised any complaint against the

problem faced by him/her to the management.

30%

70%

Complaint Raised

YesNo

Interpretation: As majority of respondent i.e. 70% had replied that they never had to

approach the management for any problems.


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Table 4.14: Table showing reasons for complaining.

Issue Raised In numbers In percentage

Wrong communication by salesman 6 37

Actual bill exceeding the estimated bill 4 25

Fall in performance of the car after service 2 13

Delay in handling over the vehicles 3 19

Infrastructure 1 6

Total 16 100

Analysis : As 37% respondent replied that the issue/problem faced by them was the wrong

communication by the salesman, whereas 25% of respondent replied that their actual bill

exceeded the estimated bill,13% replied fall in performance of the car after service,19%

stated delay in handling over the vehicles and 6% had issue on infrastructure.

Chart 4.14: Chart showing reasons for complaining.

38%

25%

13%

19%6%Issue of Complaint Raised By Respondent

Wrong communication by salesmanActual bill exceeding the es-timated billFall in performance of the car after serviceDelay in handling over the vehiclesInfrastructure

Interpretation: As majority 37% respondent had problem on wrong communication by sales

man.

Table 4.15: Table showing whether the problem was cleared by the management or not.


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Complaint solved In numbers In percentage

Yes 13 81

No 3 19

Total 16 100

Analysis:Maximum percentage of respondent i.e. 81% replied that there problem were

solved by the management ,whereasthe rest 19% stated that their problem were not taken

care by the management.

Chart 4.15: Chart showing whether the problem was cleared by the management or not.

81%

19%

Problem Solved by Management

yes NA

Interpretation: As majority of respondent (81%) were satisfied with the management, as

their problem were taken good care by the Laxmi Hyundai management.

Table 4.16: Table showing duration to solve the issue by the management.


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Duration to solve the issue In numbers In percentage

Within few hours 6 46

Within 1 day 3 23

With 1 week 2 15

More than 1 week 1 8

More than 2 week 1 8

Total 13 100

Analysis :As 46% respondent replied that their issue were solved with in few hours by the

management but rest 23% replied within 1 day,15% replied with in 1 week,8% replied more

than 1 week and 8 % more than 2 week for their problem to be solved by the management.

Charts 4.16: : Table showing duration to solve the issue by the management.

46%

23%

15%

8% 8%

Timetaken to Solve the Issue

within 1 hourwithin 1 daywithin 1 weekmore than 1 weekmore than 2 week

Interpretation: As majority 46% respondent had positive response for their issue which was

send to the management. As their complaints where replied with in 1 hour after their

complaint being registered. This was due to good CRM techniques used by Laxmi Hyundai

to face and handle complaints.

Table 4.17: Table showing how the customers rate the service after sale.


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After sales service In numbers In percentage

Excellent 3 6

Good 10 20

Satisfactory 29 58

Poor 05 10

Very Poor 03 6

Total 100 100

Analysis: 58% of the respondents stated the “after sales service” to be satisfactory. This

shows that the after sales service in not such effective as stated by the respondents, 20% of

the respondents said that was “good”, only 6% as excellent and almost 6% found it to be

“poor” and “very poor”.

Chart 4.17: Chart showing how the customer rates the service after sale.

Interpretation :The "after sales service" is stated by most i.e. 58% as "satisfactory" and a

very few stated it as "excellent" and "good".


6%20%

58%

10%6%

After Sales Service

ExcellentGoodSatisfactorypoorvery poor

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Table 4.18: Table showing regarding overall all experience of the customer with this

showroom.

Overall experience In numbers In percentage

Excellent 17 34

Good 10 20

Satisfactory 13 26

poor 7 14

Very poor 3 6

Total 50 100

Analysis: Out of the respondents, 34% have stated their experience as “excellent”, 20% as

“good”, 26% as “satisfactory”. 14% have stated it as “poor” and only 6% stated it as”very

poor”. This shows that on the whole customers are just “satisfied” with the services offered

at this showroom.

Chart 4.13: Chart showing regarding overall all experience of the customer with this

showroom.

34%

20%26%

14%6%

Overall Experience

ExcellentGoodSatisfactorypoorVery poor

Interpretation: The overall experience of the customer is found to be "excellent" as state by

34% of the respondents.


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CHAPTER: 5

FINDINGS, SUGGESTIONS

&

CONCLUSION


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FINDINGS

From the responses of 50 customers the findings can be listed as:

1. It has been found that the newspaper and magazine are the major source of awareness

about the dealer.

2. The ambience of the showroomis "excellent" as stated by most of the customers. This is

a good indicator for the showroom.

3. The staff response is found to be "Responsive" rather than co-operative. It seems "Staff"

doesn't respond until asked for. This may lead negative impact on the perception of the

customers about this showroom.

4. Time taken to attend the customercall is considered as "reasonable" by the most of the

respondent.

5. It seems most of the customers found the "sales executive explanation" just

"Satisfactory" than "Convincing". Few (20 out of 50) even stated that sales executives

don't explain all the features unless asked.

6. The process involved in providing financial facilities is considered as (68% of

respondents) as very complex & time consuming. They don't find it very convenient.

7. As most of the customer states that the “after sales service" provided by the showroom

is just “satisfactory" therefore the company needs to be consider this issue seriously in

order to satisfy more customer in near future.

8. The availability of varied colors in this showroom seems to be very limited as stated by

most of respondents. It shows that customer is given a limited choice in matter of color

of the car.

9. As much as 76% of respondent have stated that they are very likely to suggest this

showroom to their friends\relatives. . It is an indication of high satisfaction level and

customers are happy with the service provided by the showroom.

10. As most of the respondent i.e. 38% considered the trust worthiness to be the reason for

suggesting the showroom to other.

11. Most of respondent stated that the equipment used for the maintaining the vehicles was

excellent.


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12. As most of the respondent had replied that they had never felt any inconvenience after

leaving their car for service. It shows that Laxmi Hyundai has built the trust in the mind

of the customer.

13. The number of respondent responded that they had never come across any complaints

or issued to be raised against the Laxmi Hyundai. This shows that Laxmi Hyundai was

providing better CRM.

14. Out of 16 respondent only 6 had an issue of complaint regarding the wrong

communication by sales man so Laxmi Hyundai should provide proper training to the

sales person.

15. Most of the respondents were satisfied with the management, as their problem was

taken good care by the Laxmi Hyundai management.

16. Majority of the respondent had positive response for their issue which was send to the

management. As their complaints were resolvedwithin 1 hour after their complaint

being registered. This was due to good CRM techniques used by Laxmi Hyundai to face

and handle complaints.

17. Majority of the customer stated that their overall experience towards the showroom was

found to be "excellent”.


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RECOMMENDATIONS

An attempt has been made to suggest to the CRM department of the

showroom a few measures. These recommendations have been made within the preview of

the data available.

1. The staff should be trained on regular basis, such that customers find them very co-

operative.

2. The time taken in attending the customer call needs to be minimum.Effective and less

time consumptions are the important factors, which determine customer relationship

management.

3. The sales executive should be trained adequately so as to "Convince" the potential

buyers, because his performance on job has great impact on CRM.

4. The process involved in providing financial facilities needs to be made simple as much

of the respondents stated it to be complex and time consuming.

5. After sales service should be more customized. A toll free facility should be introduced

which help the customer to define their problem. If possible a mobile unit can be

maintained so that customer need not have to bring car to the showroom in case of any

problems.

6. These days most of the people wish to have some graphics over their cars. This may be

a mix of color shades, some additional components etc. Showrooms may try to provide

these kinds of customized solutions not requiring the customer to go at some other

place.

7. Most people who buy cars wish to have fancy numbers. They spend considerable

amounts to get these fancy numbers. Showrooms may work in this aspect and get into

agreement with the registration office to provide these fancy numbers without taking

exorbitant charge.

8. More EMI schemes can be introduced as customers find it more convenient in paying a

EMI.

9. A call to the customers as per the schedule of service to know the working of car so that

prompt service can be provided in case of need.

10. Extra offer to customer on referring to his friends/relatives.

11. Maintaining the high level of customer convincing.

12. Introduce the online booking facilities for customer to service their cars.


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CONCLUSION

On the basis of simple random sampling the total sample size attended was 65 customers in

which 50 respondent were who owned the Laxmi Hyundai vehicles. The data analysis was

done with help of techniques such as questioner and different survey method. The proceeding

of this study was done by a survey, which is an appropriate tool to maintain the level of

customer Relationship. A structured questionnaire was developed in the process. These tools

helped in analyzing the obtained information or results which projected certain findings and

recommendations.

From the research, several issues are found which needs to be emphasized for Laxmi

Hyundai was greater success. Marketing strategy adopted by the organization is attracting

huge customers. What have been noticed after interviewing around 50 customers that almost

75% of customers were happy and satisfied by the work of Hyundai Nepal. This shows that

the showroom and all the service departments are most popular among the customers and

they are doing the great job.

Based on the findings of the study it is suggested that Laxmi Hyundai should do frequent

market research on the basis of structured questionnaire to understand the existing market

situation and carry out the corrective measures or improvements as needed for sales

promotion. Laxmi Hyundai Company should frequently improve in its complaints handling

system of customers to effectively manage such complaints of various customers and

encourage customers to give more positive feedback about the product and services. The

management must be able to collect and documents complaint and use that information to

identify dissatisfied customers. Finally, lack of stable government, no clear government rules

and regulations, heavy custom duties and taxes imposed on vehicles import, acute/heightened

competition in the sector are some of the areas where the government should focus to

improve and make the business more lucrative.


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BIBILIOGRAPHY


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BIBILIOGRAPHY

1. Indian management

2. Principles of marketing

3. Marketing management

Philip Kotler

4. Marketing research

G.C. Beri

5. Customer Relationship Management

- William G.zikmund

-Raymond mc. leod, JR

-Faye W. Gilbert

6. TATA Mc. Graw Hill, Marketing Management

-RajanSaxena

7. Customer relationship management

Jagdishsheth

Atulparvatiyar

G Shaniesh

Web sites-

www.laxmiHyndai.com

www.Google.com

www.sciencedirect.com

www.worldwide.hyundai.com

www.wikipedia.com

Journal :

njazz J. Chen, Karen Popovich, (2003) "Understanding customer relationship

management (CRM): People, process and technology", Business Process

Management Journal, Vol. 9 Iss: 5, pp.672 - 688

Jagdishsheth thought leader

Adrian Payne, PennieFrow (2005) A Strategic Framework for Customer

Relationship Management. Journal of Marketing: October 2005, Vol. 69, No. 4, pp.

167-176.


http://www.worldwide.hyundai.com/

http://www.sciencedirect.com/

http://www.Google.com/

http://www.laxmiHyndai.com/

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ANNEXURE


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QUESTIONNAIRES

Dear customer,

I am MBA student of, REVA INSTITIUTE OF TECHNOLOGY

AND MANGEMENT doing a survey on customer relationship management with regard to

this showroom. I would be grateful to you if you could spare a few minutes to this

questionnaire.

1. Do you own a car? Yes\No.

i. If yes, please specify....................................................

2. How did you come to know about Laxmi Hyundai Company?

i. Newspaper

Advertisement

ii. Social media

iii. Others, specify…………

iv. Websites

v. Friends

3. How do you find the ambience of this showroom?

i. Excellent

ii. Very good

iii. Good

iv. Satisfactory

v. Needs to be improved

4. How do you feel the staff responsiveness when you enter the showroom?

i. very Co-operative

ii. Co-operative

iii. Responsive

iv. Non-Co-operative

v. Highlynon-co-operative

5. What do you feel about the time taken by the receptionist of this service center

inattending your call?

i. Very quick

ii. Quick

iii. Reasonable

iv. Delay


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v. Very much delay

6. How do you find the sales executives explanation about the car features?

i. Convincing

ii. Satisfactory

iii. Non convincing

iv. Non satisfied

v. Unless asked

7. How do you find the process involved in providing the financial facilities by

showroom?

i. Very Simple

ii. Simple

iii. Moderate

iv. Complex

v. very complex

8. How do you find the availability of choice of car colors in this showroom?

i. Wide range

ii. Limited

iii. Very few

9. Will you suggest this showroom to your friend's\relatives?

i. Yes ii. No

A. If yes, because of

i. quick service

ii. Timely response

iii. Friendly atmosphere

iv. Trust worthiness

v. infrastructure

B. If No, please specify …………………………………………………….


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10. How do you feel about the equipment’s used here to deal with carscompared to

others?

i. Excellent

ii. Good

iii. Satisfactory

iv. poor

v. very poor

11. Have you felt inconvenience after leaving yours car for service with the dealer?

i. Always

ii. Sometimes

iii. Never

12. Have you raised any complaint against the problem/inconvenience faced by you to the

management?

i. Yes ii. No

a) The issue raised by you was related to

i. Wrong communication

ii. Actual bill exceeding the estimated bill

iii. Performance of car after service

iv. Delay in delivering the vehicles after service

b) If yes, was the problem/issue attended and solved by the management?

i. Yes

ii. No

c) How long did the management take to solve your issue?

i. Within few hrs.

ii. 1 day


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iii. Within 1 week

iv. More than 1 week.

v. None

13. How do you rate after sales service of this showroom?

i. Excellent

ii. Good

iii. Satisfactory

iv. Poor

v. Very poor

14. How is yours overall experience with this showroom?

i. Excellent

ii. Good

iii. Satisfactory

Personal profile

Name:-

Occupation:-

Address:-

Contact No.

Thank you for valuable time.


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Service Reception

Waiting Room

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Spare parts store

Repair &Maintenance

Service area

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Wheel balance and Tyre change

Paint Booth

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Washing

Diagnosis

a study on CRM practise of LAXMI HYUNDAI(NEPAL)

Education

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