piaggio csi

ACKNOWLEDGEMENT

Words are only vehicles, which would carry my emotions and thoughts, when I step

in the door of completion of my project work for summer training of two months.

It gives me great pleasure and privilege to express my heartily thanks and deep sense

of gratitude towards my guide, Prof. R. Pahurkar, for his sterling efforts, amicable

assistance, and inspiration in all phases of the project work toward the path of completion.

I am grateful to Piaggio Vehicles Pvt. Ltd., Baramati for giving me the permission for

the project work, and availing me their facilities. I am indebted to Mr. S. S. Sawant (Service

Manager) and Mr. K. Kenche (HR Manager) for their prompt assistance and guidance

during the course of my project work.

I am grateful to S. P. Enterprises, Baramati for giving me the permission for the

project work, and availing me their facilities. I am indebted to Mr. P. Wabale (Chief

Manager) and Mr. N. Bankar (Head Sales Executive) for their prompt assistance and

guidance during the course of my project work.

I also take this opportunity to express my sincere thanks toward all the members from

Piaggio Vehicles Pvt. Ltd., Baramati for sparing their valuable time especially while clearing

my vague concepts in fields of their expertise.

I am thankful to Dr. B. V. Sangvikar, HOD, Department of Management Sciences,

for his encouragement. I am extending my thanks to all those persons who have helped me,

directly or indirectly, in completing the project work.

I hope that I have been successful in my endeavor. Discrepancies, mistakes, if any, are

solely mine.

Sameer V Mahajan

MBA++ Marketing

PUMBA

Department of Management Sciences (PUMBA)

EXECUTIVE SUMMARY

The automotive industry is at the centre of India’s new global dynamics. PIAGGIO

VEHICLES PRIVATE LIMITED (PVPL) is a division of PIAGGIO GROUP, having a

Piaggio’s product range covers three wheelers and light commercial vehicles. Piaggio

Vehicles Pvt. Ltd. Baramati wants to shift from being process centered to more customer

centered. The unit has good track record with excellent customer retention and customer

satisfaction. The management felt the need to find out real picture.

The project was really challenging. As the project title “CUSTOMER

SATISFACTION SURVEY” suggests that it is all about the marketing and the commercial

aspect of the company. It involved meeting 100 existing customers, taking their interview and

finding out what they really perceive about the product performance. The domain of project

was Baramati city of Pune district and the respondents were existing customers of S. P.

Enterprises, Baramati (dealer). While doing survey I realize that the things learnt from the

books are quite different from the actual practice in field.

The body of the project report takes a micro level approach, using each step of the

marketing research process. The main source of analyzing the data is through questionnaires.

A thorough analysis has been done in research methodology part to find the advantages and

disadvantages of the company. A complete analysis of variance has been done to find the

kind of satisfaction PVPL’s Service Stations provides to their customers. The best part of this

project report is the analysis and interpretation of the various services provided by Service

Station. This part directly shows whether the customers are satisfied with the products and

services of PVPL and criticizes the ill part of the company.

The major objectives of project were as follows…..

To ascertain the level of satisfaction among the Piaggio vehicle owners (three

wheelers) with respect to services provided by authorized service stations.

To evaluate critically market acceptance of Piaggio Group (PVPL) products.

Customer perception towards the products of PVPL.

The ways to retain the existing customers and improving customer base of three

wheelers to service station.


After gathering of data and doing analysis it was felt that the dealer’s people should

visit the customers and the villages regularly which was not possible because of limited

numbers. Thus after considering the limitations the recommendations given were as

follows….

Forming Customers Friend Cell (CFC) in each village which would comprise of

the existing customers itself and providing them necessary training to check the

maintenance aspects of the vehicle, informing them about the servicing schedules

etc. This cell would be the representative of the dealer in the village.

Conducting Seminars and social events yearly. This will improve customer

involvement.

Many more suggestions were given to the management. These few recommendations

will be implemented from this year. At the last part I wrap up the project with suggestion and

recommendations to enhance the future growth and prospects of the company.


I N D E X

Acknowledgement

Executive summary

1. Introduction

2. Industry profile

a. Three wheeler industry

b. Analysis of competitors

c. Growth prospect and key drivers

d. Environmental and safety concern

3. Company profile

a. Mission

b. Vision

c. Piaggio Vehicles Pvt. Ltd. Baramati

d. S. P. Enterprises Baramati

e. Future plans

f. Product profile

4. Research methodology

a. Problem definition

b. Objectives

c. Scope of study

d. Research design

e. Sampling

f. Data collection

g. Limitations of study

5. Data analysis

6. Findings

7. Recommendations

8. Conclusion

Questionnaire

Biblography


LIST OF TABLES

Table No. Table Page No.

01 Category wise Production percentage

02 Service frequency of vehicles

03 Service frequency at service station

04 Overall experience

05 Past experience with Piaggio vehicles

06 Types of work at workshop

07 Advance booking

08 Warranty cases handling

09 Frequency of maintenance

10 Interaction with service advisor

11 Understanding of problem stated

12 Road test

13 Delivery of vehicles

14 Estimates of cost and time

15 Competence of mechanics

16 Service recommendation

17 Infrastructure and cleanliness at work place

18 Spare parts experience

19 Repetition of work


LIST OF FIGURES

Figure No. Figure Page No.

1 Category wise Production percentage

2 Category wise annual sales volume

3 Category wise production trend

4 Three wheelers sales data

5 Usage wise market of three wheelers

6 Market share of three wheelers

7 Region wise sales of Piaggio group

8 Category wise sales of Piaggio


I N T R O D U C T I O N


CUSTOMER SATISFACTION

Today the companies are facing their toughest competition ever, due to numerous

factors. And the entire success of the company lies in the amount of belief and loyalty; its

customers are having in it. The amount of faith that is vested in the company by its customers

determines the way the company’s preceding. In this digitally enhanced world, marketing has

lost its prime scope and new terms have started creeping in its contents and one can see

clearly that a vast majority of these are ‘customer focused’. And the rest they are from

‘Information Technology’. So customer plays the important role behind the success of a

company, no matter what levels of technology it has and what levels of turnover they make.

Now with the technological interference, the war between the companies has shifted from

the grounds of Product, Price, Place and Promotion to single ‘P’ Pleasure of Person. And that

person is the ‘Customer’. Also gone are the days of creating customers. It is now acquiring

and ‘sustaining’ the customer that plays a major role in deciding the victor in such wars.

The customer satisfaction is thus vital element in success of company. Satisfaction is

an individual’s feelings of pleasure or disappointment resulting from comparing a product’s

perceived performance (or outcome) in relation to his or her expectations. Whether the buyer

is satisfied after purchase depends on the offer’s performance in relation to the buyer’s

expectations. If the performance falls short of the expectations, the customer is dissatisfied. If

the performance matches the expectations, the customer is satisfied. If the performance

exceeds expectations the customer is highly satisfied or delighted. A company would be wise

to measure customer satisfaction regularly because one key to customer retention is customer

satisfaction. A highly satisfied customer generally stays loyal longer, buys more as the

company introduces new products and upgrades existing products, talks favorably about the

company and its products, pays less attention to competing brands and is less sensitive to

price, offers product or service ideas to the company, and costs less to serve than new

customers because transactions are routine. When customers rate their satisfaction with an

element of the company’s performance say delivery. It could mean early delivery, on-time

delivery, order completeness, and so on. The company must also realize that two customers

can report being “highly satisfied” for different reasons. One may be easily satisfied most of

the time and the other might be hard to please but was pleased on this occasion. A number of

methods exist to measure customer satisfaction. Periodic surveys can track customer

satisfaction directly. Respondents can also be asked additional questions to measure


repurchase intention and the likelihood or willingness to recommend the company and brand

to others. Companies that do achieve high customer satisfaction ratings make sure their target

market knows it. For customer centered companies, customer satisfaction is both a goal and a

marketing tool. Although the customer-centered firm seeks to create high customer

satisfaction, that is not its ultimate goal. If the company increases customer satisfaction by

lowering its price or increasing its services, the result may be lower profits. The company

might be able to increase its profitability by means other than increased satisfaction (for

example, by improving manufacturing processes or investing more on R&D). Also, the

company has many stakeholders, including employees, dealers, suppliers and stock holders.

Spending more to increase customer satisfaction might divert funds from increasing the

satisfaction of other “partners”. Ultimately, the company must operate on the philosophy that

it is trying to deliver a high level of customer satisfaction subject to delivering acceptable

levels of satisfaction to the other stakeholders, given its total resources.


AUTOMOBILE INDUSTRY

The automobile industry is one of the biggest industries in the world. Being a major

revenue and job generating sector it drives the economies of some of the superpowers of the

world. In India the automobile industry has grown by leaps and bounds since the advent of

the liberalization era the automobile industry and especially the three wheeler segment has

grown by leaps and bounds. The liberalization has done away with primitive and prohibitive

practices of licensing and restricted foreign investment have been done away with. The result

of which was the entry of foreign players into the Indian market.

India is emerging as a source of high value and advanced quality engineering products

and services for multinational companies. India is set to emerge not only as a large domestic

market for automotive manufacturers, but also as a crucial link in the global automotive

chain. Among other industries, the automotive industry in India is understood to be the most

dynamic. It has been experiencing strong growth rates after de-licensing of the industry in

1991, when major economic reforms took place in India.

The Indian auto industry has the potential to emerge as one of the largest in the world.

Some remarkable milestones of the Indian automobile industry…..

• The largest manufacturer and second largest market of two-wheeler in the world

• The largest three-wheeler market in the world.

• The fourth-largest commercial vehicle market in the world.

The post 90s era was the era of liberalization and weakening of restrictive measures.

The government went on an overdrive to support the industry and all FDI regulations and

licensing was abolished. 100% FDI was allowed in the automobile industry and the excise

duty was also considerably reduced to its current level of 10% on three wheelers. These

factors combined with the rising fuel prices, the increasing dispensable incomes of

households, easy access to finance, etc. have led to three wheeler industry becoming the

backbone of the automobile industry in India.


Figure 1: Overview of industry

THREE WHEELERS INDUSTRY

The three wheelers have successfully helped to overcome the dearth of jobs in the

country. Numerous people could be seen driving auto-rickshaws on the roads of cities like

Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and many more. Due to their simple

construction and limited amount of investment the three wheelers as a mode of conveyance

and commercial mechanism has gained popularity. What's more, their maintenance is also

quite simple. Bajaj Auto has dominated the three wheeler market in the country for years.

Several other companies like Piaggio Vehicles and Mahindra & Mahindra have made a late

foray into this field. An overview of the current automobile market indicates that the

tremendous demand of three wheelers in India and abroad has also allured several other

automobile manufacturers like Honda India and TVS Motor to start producing the three

wheelers.

India is the largest three wheelers market in the world. Three-wheelers are light

vehicles also known as auto-rickshaws that are mostly used as small taxis, pick-up vans and

delivery vans for short distances in India. They are driven by two stroke or four stroke

engines on petrol, CNG or Liquefied Petroleum Gas (LPG). There are few manufacturers of

this type of vehicle, but the three-wheeler segment has witnessed strong growth rates of 9 per

cent CAGR over the past decade.


The three wheeler industry in India forms a smaller chunk of the automobiles

produced in India. According to Society of Indian Automobile Manufacturers (SIAM)

statistics for the year 2008 – 2009, three wheelers comprise around 4% of market share

among the vehicles produced in India.

Table 1: Category wise Production percentage

The sales volume clearly highlights this market share….

Figure 2: Category wise annual sales volume

Three-wheeler sales in India touched a new record of 0.4 million in 2006–07. The

launch of four-wheel, sub-1-tonne vehicles has resulted in a segmental shift from three-

wheelers. The proportion of three-wheeler goods carriers in overall sales has doubled,

indicating the increased need for a low-cost, last mile transportation system. The less-than-

3.5 tonne segment in goods accounted for 82 per cent of sales and the less-than-four seater

segment in passenger versions accounted for 97 per cent of sales.


The production share of three wheelers is quite similar to the market share. The three

wheeler industry comprises around 74% of the total automobiles produced in India. The

SIAM data for the year 2008-09 states that 8,418,626 three wheelers were produced during

the year against a total of 11,175,479vehicles produced during the year.

Figure 3: Category wise production trend

In the past year the sales of the automobile segment has taken a setback and the three

wheeler segment has not proved to be any exception. The three wheeler segment has suffered

a setback of over 5% during the past fiscal year but there have been signs of recovery in the

current year.

Figure 4: Three wheelers sales data


The three wheelers market is dominated by passenger carriers. The replacement of

four wheelers in the 1.5 tone category, have made severe impact on goods carrier category.

Figure 5: Usage wise market of three wheelers

The export of automobiles from India has been constantly growing and with the

slowdown in the domestic market, the major companies are focusing on exporting much more

to increase their profit margins.

COMPETITORS

The three wheelers market is been dominated by Bajaj Auto and Piaggio Vehicles.

Figure 6: Market share of three wheelers


Bajaj Auto Ltd.

Bajaj Auto Ltd. is one among India's top ten companies in terms of market

capitalization and among the top five in terms of annual turnover. Established in 1945 Bajaj

Auto Ltd was incorporated as a trading company. Till 1959, they imported scooters and three-

wheelers from Italy and sold them in India. The company got a production license in the year

1959 and fastened a technical collaboration with Italian PIAGGIO in 1960.

The company started producing scooters in the year 1961 and followed three-wheelers

production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their

scooters and three-wheelers are being sold with the brand name “BAJAJ”.

Today, the company has become a market leader with annual production in excess of

1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has

started offering products in all segments (mopeds, scooters, motorcycles, three wheelers).

TVS Motor Ltd.

The company has been known for its ruggedness and reliability. TVS Motor is a

leading and trusted two wheeler company. TVS Motor has continually worked on innovation

of the all segment along with three wheelers range. In all, team TVS has triumphed each and

every race and rally in the country from the road to racetrack, with each of the TVS bikes

being a winner. And each time the 'Team TVS' has won on the track or off it; our customers

have secured a better product for their personal transportation.


http://auto.indiamart.com/bajaj-auto/

GROWTH PROSPECTS AND KEY DRIVERS

The growth witnessed by the Indian three wheelers industry indicates the growing

demand for low cost personal transportation solutions amongst the 300 million Indian middle

class consumers. Despite this spectacular growth rate, the three wheeler penetration (number

of three wheelers per 1000 inhabitants) in India remains lower than other Asian countries.

This fact provides an opportunity for continued growth in the market. India has the lowest

penetration of three wheelers as compared to countries like Taiwan, Thailand, Malaysia,

Vietnam, Indonesia and China. In the present scenario, growth in the three wheelers Industry

will be driven by several factors like

Rise in India’s Young Working Population

Rise of India’s Rural Economy and Growth in Middle Income Households

Greater Affordability of Vehicles

Rapid Product Introduction and Shorter Product Life Cycle

Inadequate Public Transport Systems in most Urban Areas

ENVIRONMENTAL AND SAFETY CONCERNS

The increasing demand for three wheelers will need to be managed to address issues

relating to overcrowding of roads. Another problem is the insufficient infrastructure for

inspection to ensure adherence to emission norms. As the industry grows, it is important to

regulate the sale of used two wheelers in a more organized manner for which a mechanism

needs to be evolved. Unregulated sale of three wheelers, especially the rural areas, are likely

to create issues related to emissions and safety of vehicles.


C O M P A N Y

P R O F I L E


PIAGGIO GROUP

The Piaggio Group based in Pontedera, Italy has been a world leader in the two

wheeler and Commercial Vehicles industries for over sixty years. The Group encompasses

seven brands producing scooters and motorcycles. As the fourth largest producer of scooters

and motorcycles in the world, Piaggio produces more than 600,000 vehicles annually, with 5

Research and development centers, more than 6,700 employees and operations in over 50

countries. The group operates in the two-wheeler sector manufacturing products under the

brands namely Piaggio, Vespa, Gillera, Derbi, Aprilia, Scarabeo Moto guzzi. Vehicles

manufactured are sold in over 50 countries. Two three and four wheelers are all distributed

through their own sales networks, comprising over 11,000 independent operators in the

European main and secondary networks, 250 exclusive dealers in India and 300 dealers in the

USA, as well as the distribution network of Piaggio importers in other countries.

Figure 7: Region wise sales of Piaggio group

The Group operates in the three and four wheelers sector, manufacturing products

under the Piaggio, Ape, Quargo and Porter brands. The Piaggio Group light commercial

vehicles stand out for their compact dimensions, high load bearing capacity and superb

handling. The Piaggio brand image is one of vehicles that are safe, stylish, robust and with

cutting-edge technology, able to meet the most diverse urban mobility requirements.


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

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

Figure 8: Category wise sales of Piaggio

The Piaggio Group has always been committed to safety, quality, environmental

issues and the well-being of its employees and partners. In other words, it is committed to

being socially accountable for its operations.

Mission

Piaggio is an Italian industrial group operating with a multinational strategy, whose

activities are directed towards offering transport solutions at an affordable price and with low

environmental impact to customers in more than fifty countries in Europe, India, Asia and

America. Its objectives are to create value for all its shareholders, while complying with

business ethics and recognizing the social role it has to play, contributing to the professional

advancement of its employees and partners and to the economic and civil development of the

communities in which it operates.

Vision

To be the no. 1 and the most profitable global player with world class quality and

technology leadership in the light commercial vehicle category offering transportation

solutions for specific customer needs. To be perceived as a unique, high -impact, fast-

response, innovative and growth oriented company which is known around the world for its

unmatched level of excellence.


Piaggio Vehicles Private Limited (PVPL)

Piaggio Vehicles Private Limited (PVPL) in India is a 100% subsidiary of Piaggio &

C. Spa of Italy, a world major in two, three and four wheeled motorized vehicles. It

revolutionized the two and three wheeler business in India. Piaggio’s target in India of

achieving a turnover of $ 1 billion by 2010 is well on the road to fulfillment. PVPL

commenced its Indian operations in 1999 with introduction to “ape'” brand of diesel Light

Transportation vehicles.

PVPL has pioneered the 3-wheeler goods transportation in India and has achieved and

sustained a leadership status in the cargo segment. Piaggio India is now recognized not just as

a leader in its class, but also as the gold standard in fuel efficiency, load carrying capacity and

lowest operating costs.

Piaggio has invented 3-wheeler in year 1947 and ever since company has pioneered

the technology all across the globe. The latest entrant in the product range is a sub one-ton

four wheeler "ape truk", which has been successfully launched in various states across India.

The access to Piaggio’s immaculate and rigorous R&D has played a role of a key driver to

our success in India. The R&D backup in India has played a role of backbone in introducing

state-of-the-art of product with latest technology. The company is headquartered at Pune and

its state-of-the-art manufacturing facilities at Baramati, Maharashtra. PVPL employs around

1700 people, has a widespread network with 7 regional offices, 14 branch offices and more

than 600 sales and service outlets across the country.

Piaggio's ape' already has more than 6,00,000 happy ape’ customers in India today.

The company achieved sales of over 1,55,000 vehicles in the year 2007. PVPL is currently

the market leader in the state-of-the-art three-wheeler diesel category in India, with a market

share of 55%.

Piaggio India’s manufacturing hub is a picture of cutting edge manufacturing

technology and advanced facilities. Having started with just 40 vehicles a day, the Indian

Plant today produces 500 vehicles per day and has a capacity of 2,00,000 vehicles per annum.

Piaggio India truly represents a seamless integration of the best of skills, technology, design,

research and customer care with Indian resources, infrastructure, intelligent manpower,


marketing and financial skills, and most importantly, a deep understanding of the Indian

market and customer needs. Piaggio’s concern for the environment is known across the

globe. We have always shared a huge commitment to develop products that are environment

friendly.

S. P. Enterprise, Baramati

It has persuaded hard to be one of the most valued organizations for retailing auto

motive and allied products with professional approach and ethical business practices. It gives

priority to attain customer delight through effective implementation of systems and

procedures and development of infrastructure which will ensure quality. The core values

are…..

Concern for customers

Relationship with trade partners

Compliance of systems and procedures

Reverence for fellow employees

Commitment to our principles

Respect to wards work

The relationship with the company….

Products portfolio : Ape 3wheelers, cargo & Passenger variants.

Territories handled : Three Talukas namely Baramati, Daund and Indapur.

Vital Statistics

Sales : Over 1000 vehicles sold during F07-08.

Service : Over 500 vehicles serviced per month.

Infrastructure : Own sales and service outlets in 5 locations.

Performance : Sales growth of over around 25% over F07-08.


Future Plans

Italian auto maker Piaggio is planning to manufacture two wheelers in India in the

coming years, as part of the company's growth plans for Asia. The maker of the famed Vespa

scooter would also be developing four wheelers product range and manufacture new diesel

engines. Detailing the company's strategic plan for the 2009-12 period, Piaggio today said it

aims to create the conditions for strong growth in Asia. As part of the plan, the firm would

strengthen its direct industrial presence and also increase "the offering of two-wheel vehicles

to be produced in India as well and commercial vehicles, backed by the development of

distribution structures, organization, and human resources". Piaggio said it would start the

production of new 1000 and 1200 cc diesel and turbo diesel engines. "These engines are to be

the fundamental feature of the Group's expanded range of commercial vehicles, produced and

marketed in both Europe and Asia, which will lead to growth and segmentation of the Ape,

Quargo, and Porter lines," the statement noted. The company would develop "four-wheel

product range, with new Ape Mini Truk, new Ape Truk Maxi Cargo...," in India. The

company produces three and four wheelers at the Baramati plant in Maharastra.

Piaggio India truly represents a seamless integration of the best of skills, technology,

design research and customer care with Indian resources, infrastructure, intelligent

manpower, marketing and financial skills, and most importantly, a deep understanding of the

Indian market and customer needs. Piaggio’s concern for the environment is known across

the globe.


PRODUCT PROFILE

The company’s product range includes half tonner cargo vehicles (Pick Up and

Delivery van), and 3 seater passenger vehicles in various fuel variants like Diesel, CNG, and

LPG. The latest entrant in the product range is a sub one-ton four wheeler ape truk, which has

been successfully launched in various states across India. All vehicles are engineered for

higher fuel efficiency, rugged performance and outstanding load carrying capability; these

vehicles are extremely environment friendly and conform to the most stringent emission

norms.

For the different types of transportation needs, answer is with us….

High body

Pick-up (Basic Model)

Delivery van

Bakery Shop

Cylinder Carrier

Hydraulic Hopper

Florist van

Ice Cream Parlour

Hydraulic Jetter

Water tanker

Dumper Placer

Soft Drink Carrier

Chicken Carrier

The particular superior features each product assures are….

High Economy

Low Operating Cost

Reliable & rugged

Total Care

Looks and Style


PIAGGIO APE

Piaggio ape three wheeler is the market leader in light commercial vehicles (LCV)

segment. Launched 2 years after the World renowned Piaggio Vespa in 1948, the

introduction of this new 3-wheeled vehicle helped commercial activities pick up in-post war

Italy. Unique and unrivalled, Ape has remained faithful to itself, even through so many

models and never-ending changes. Today, its unique, quirky shape is built around a semi-

monocoque frame that uses a single load-bearing chassis in sheet-steel. The steel body houses

either one or two seats. The body comes in number of styles including Van and Pick up and

can be customized to meet a variety of commercial needs, from catering to urban refuse

collection. The Ape is also a fantastic outdoor advertising media solution.

APE TRUK

With its sleek Italian styling and contemporary ergonomically design, the Ape TRUK

is yet another winner from the house of Piaggio – the force behind India’s largest selling

diesel 3 wheeler: Ape. True to its international pedigree: the Ape TRUK is a state-of-the-art

sub one-tonne 4-wheeler that combines a whole basket of outstanding features – excellent

stability, the highest payload, the convenience of 3-side openable panels, higher ground

clearance, all-terrain capability and outstanding fuel efficiency. Add to this its stylish Italian

looks and the highly comfortable car-like interiors, and you get a clear picture of what the

Ape TRUK has to offer.

Key Benefits

Great Mileage & performance

More Load ability

State-of - the art technology

Lowest operating costs

Unbeatable service

Super safety

Great driving comfort


R E S E A R C H

M E T H O D O L O G Y


PROBLEM DEFINITION:

Mission statement of Piaggio Group gives prime importance to the customer

satisfaction. The company is the leader in providing three wheelers to customers. PVPL

wanted to measure the customer satisfaction for the after sales service provided by S. P.

Enterprises in Baramati region. The period of project was the time when the new LPG model

of Ape was introduced in the market. The Sales Executives had to visit the villages under the

service area of the dealership. The survey was thus conducted to find perception of the

customers towards the company product and its performance.

PVPL and SP Enterprises also want to increase their customer base. And hence a

survey of prospective customers was also done to find out the important aspects to attract the

prospective customer. Also to find out the deficiencies in product because of which the

customers are not preferring company’s product over rival’s products. So it was thought to

interview the non customers also to find out the level of customer satisfaction.

OBJECTIVES:

Primary Objectives

To ascertain the level of satisfaction among the Piaggio vehicle owners (three

wheelers) with respect to services provided by authorized service stations.

To find the loopholes in the after sales services to the customers.

To evaluate critically market acceptance of Piaggio Group (PVPL) products.

To analyze the price sensitivity in various spares.

To find out the customer’s perception on different attributes through questionnaires.

Secondary Objectives

Customer perception towards the products of PVPL.

Advice to change some attributes of Service Station.

To understand the potential market.

The ways to retain the existing customers and improving customer base of three

wheelers to service station.


SCOPE OF THE STUDY:

As the title of the project “CUSTOMER SATISFACTION SURVEY ’’ suggests that

the project is divided into two major parts:

1. Technical

2. Commercial

The scope of the technical part is limited to the company premises only. Various raw

materials are imported from our own domestic and foreign markets also. The research and

development department of Piaggio Vehicles Pvt. Ltd. is constantly attempting to lower the

cost of some of the models.

The scope of the commercial part is very wide. The geographical area covered is

Baramati. The time period assigned was complete two months. The authorized service station

covered for the survey was S. P. Enterprise, Baramati.

Basically there was a questionnaire to which the respondent has to respond.

RESEARCH DESIGN:

Target Population : Existing customers of S. P. Enterprise, Baramati of Piaggio

Ape (3 Wheeler).

Time boundary : Two months (1st June 2010 to 31st July 2010)

Space boundary : Baramati city of Pune district.

Survey methods:

o Instrument used : Questionnaire

o Data collection : Interview technique was personal

o Response method : Verbal response

Questionnaire design:

o Required information is unraveled by facts, opinions knowledge & behavior

type questions.

o Question structuring : structured

Research environment : natural


All research approaches can be classified into three general categories:

1. Exploratory Research

2. Descriptive Research

3. Casual Research

The data collection is done by use of surveys methods and hence descriptive type of

research is used for analysis of the data. The study was descriptive in nature because it

depicts characteristics or functions of the market. It describes the number, distribution and

socio-economic characteristics of potential customers for the product.

SAMPLING:

A sample is a part of the population. The sample should be representative of the

population and the information obtained must be reliable. In any survey where reliability is

desired, the error and variance have to be controlled, measured and interpreted.

The type of population selected is the customers of service station of Piaggio Vehicles

Pvt. Ltd. named S. P. Enterprise at Baramati. Baramati is a taluka of Pune district of

Maharashtra state.

Sample Size : 100 Existing Customers.

Sampling Technique : Non probability judgment sampling

The statistical tools used while analyzing the data are as follows…..

Tables

Bar charts

figures


DATA COLLECTION:

Primary Data

The primary data was collected by asking the consumers who come to the authorized

service stations for the servicing of their commercial vehicles and also the new customers of

the commercial vehicles to fill up the questionnaires by me. It is a very important part of the

project as it is only through the properly filled up questionnaires that I can reach to any

conclusion from the data which I got from the questionnaires. The methods used for

collecting primary data are as follows…

a) Observation

b) Interview

c) Telephonic Interview

d) Questionnaires

Interview:

Interview is one of the chief means of collecting data in research process. Interview

may be defined as a systematic conversion initiated for a specific purpose and focus on

certain planned content areas. It is not a simple two way conversion between an investigator

and an informant.

Surveys:

There are three main types of surveys, depending upon the method of data gathering

used: personal interview surveys, telephone surveys and mail surveys. The main advantages

of survey are wider distribution, lesser distribution bias and thoughtful responses.

The primary data under processing is collected from both direct filling the

questionnaires and through telephone interviews also.

Secondary Data

The data once collected by one person become the secondary data if used by another

person. Secondary data are the information which is attained indirectly. They are the data

collected by someone else and which has already passed through statistical process. The

various sources of secondary data are as follows…..

a) Bibliography


b) Directory

c) Newspaper

d) Journals

e) Website

f) Television

The secondary data like information of existing customers, information about

company’s profile product line and sales figure has been taken from company’s website.

LIMITATIONS OF THE STUDY:

Every study conducted may have certain shortcomings and unfortunately this is also a

similar case. A few errors have crept in despite best effort to avoid them but it is expected

that still the study and findings are very much relevant.

An error may have been due to the samples taken not conforming to the actual

population. This is because the sample is a convenience sample.

Personal bias or error of the interviewer might also have crept in the responses. It

realized in some cases, while interpreting the respondents.

Certain questions which are not properly responded by the responders.

Some of the respondents have not responded totally.


DATA ANALYSIS

The questions about customer’s satisfaction were asked to 100 customers who have

purchased Piaggio Ape and Ape Truk form S. P. Enterprise, Baramati. The data was collected

in the month of May and June 2010. A regional language (Marathi) was used while framing

questions. Analysis of it was done on a MS-Excel sheet with the help of simple graphical

method. Questionnaire includes both open ended question and close ended question.

For the convenience of the reader question are also given above the charts for better

understanding. Many valuable inputs were received in the course of the project. They are

presented as findings after relevant chart.

When was the last time your Piaggio vehicle was serviced with a Piaggio dealer

authorized service station?

Sr. No. Period Number of customers

1 March 09 25

2 April 09 32

3 Jan-Feb 09 25

4 Year 2008 18

Table 2: Service frequency of vehicles

Chart 1: Service frequency of vehicles


Most of the customers have come for service in PVPL dealer service station in the

month of April i.e. 32% last time and the least the customers came for service is in the year

2008 i.e. only 18%. According to the customer survey many customers told that they have to

come for service again and again because of some problem in the vehicle. Only 18% of the

total customers said that they have come to a dealer service after a very long time. Those 18%

customers are quite satisfied with the service.

Where did you take it for service?

Sr. No. Dealer Number of customers

1 S. P. Enterprise Baramati 80

2 Other 20

Table 3: Service frequency at service station

Chart 2: Service frequency at service station

It clearly indicates that customers regularly comes to dealer and are satisfied with the

performance of dealer.

How was the overall experience?

Sr. No. Experience overall Number of customers

1 Satisfied 60

2 Dissatisfied 40

Table 4: Overall experience


Most of the customers are dissatisfied with the unavailability of spare parts in the

service station. Some are dissatisfied with the product quality. Some are unhappy with the

mechanics working in S. P. Enterprise. Most of the customers are very much happy with the

culture of dealership and also the way the staffs attend the customers. Some are unhappy with

the space available for servicing at dealer point. Some are dissatisfied with the delay in

service.

Number of Piaggio vehicles used in past 5 years?

Sr. No. Number of vehicles Number of customers

1 Less than five 43

2 Five 22

3 More than ten 35

Table 5: Past experience with Piaggio vehicles

It shows that many customers are satisfied and happy with PVPL products and of their

services.

Type of work required in your vehicle?

Sr. No. Type of work Number of customers

1 Paid service 30

2 Free service 36

3 Paid repair 14

4 Warranty 20

Table 6: Types of work at workshop


Most of the customers come to S. P. Enterprise for free service and only 14 out of the

100 customers come for the paid repair. The reason behind this is that the spare parts

available at any dealership are very costly. Therefore sometimes they buy par ts from local

shops at lower cost.

Did you have to make an advance booking?

Sr. No. Advance booking Number of customers

1 Yes 70

2 No 30

Table 7: Advance booking

Many customers have to make an advance booking for servicing because in service

station because of the rush of customers time consumption is more. This results in a loss of

the customers. Therefore they have to do advance booking. Only 30% of the samples

customers do not do advance booking. These customers mainly come for paid repairing of

the vehicle and not for free servicing. Many customers have to wait in the queue because of

the rush.

If your vehicle was under warranty was it immediately accepted or it took time for a decision

to be taken?

Sr. No. Warranty immediately accepted Number of customers

1 Yes 40

2 No 60

Table 8: Warranty cases handling

Some customers said that there was unavailability of spare parts in service station and

therefore it was not accepted. In some other dealer workshops they do not have the authority

to accept warranty. Sometimes parts are not available so the dealers have to bring those from

outside. It is time consuming and also loss for the customer. But some parts of vehicle are not

under warranty so it is not accepted. Also some customers do not bring their registration book

so it is not possible for the dealer to repair the vehicle under warranty because for some

vehicle warranty is accepted till one year from the purchase date.

How frequently the maintenance costs occur?

Sr. No. Frequency monthly Number of customers


1 Never 18

2 Less than three 73

3 More than three 09

Table 9: Frequency of maintenance

Very few customers have to incur heavy maintenance cost monthly. Otherwise major

chunk of customers need minute maintenances. Only 18% customers reported that they didn’t

incur any expense on their vehicle since they purchased. These customers have recently

bought their vehicle. Therefore it means the maintenance cost of Piaggio vehicles is very less.

Did you interact with the service advisor? How was the understanding of the problem?

Sr. No. Interaction with service advisor Number of customers

1 Yes 70

2 No 30

Table 10: Interaction with service advisor

Sr. No. Understanding of the problem Number of customers

1 Yes 40

2 Almost 25

3 No 5

Table 11: Understanding of problem stated

Sr. No. Road test Number of customers

1 Yes 78

2 No 22

Table 12: Road test

Was vehicle delivered on time?

Sr. No. Timely delivery Number of customers

1 Yes 71


2 No 29

Table 13: Delivery of vehicles

Did workshop give you proper estimate of cost and time on time?

Sr. No. Estimation of cost and time Number of customers

1 Yes 65

2 No 35

Table 14: Estimates of cost and time

It gives idea to the customer about expense of time and money he has to incur. The

proper estimates given if mate adequately then it will build good customer relation.

How do you find the competence of mechanic in the workshop? Do

they know their job well?

Sr. No. Competence of mechanic Number of customers

1 Satisfied 82

2 Dissatisfied 18

Table 15: Competence of mechanics

Will you recommend others for service in this workshop?

Sr. No. Recommendation Number of customers

1 Yes 75

2 No 25

Table 16: Service recommendation

It shows that major chunk of customers are happy with the staff present in S. P.

Enterprise Baramati. They are satisfied with prompt, better and quick service at service

station. Some customers recommended that the mechanic should be increased as there is

always a rush in the workshop. The manager should guide the mechanic to do proper work

and recheck the vehicle after the servicing is done. One supervisor should also be kept to

guide the mechanic.

Are you happy with the infrastructure and cleanliness at the service station?


Sr. No. Cleanliness Number of customers

1 Yes 34

2 No 66

Table 17: Infrastructure and cleanliness at work place

Major focus has to be given on these parameters so as to increase level of satisfaction

and customer base.

Are you satisfied with the availability and cost of spare parts at S. P. Enterprises?

Sr. No. Spare parts Number of customers

1 Satisfied 73

2 Dissatisfied 37

Table 18: Spare parts experience

Some customers said even the common and frequent parts are not available at service

station. Therefore many times customers have to purchase parts from outside form their own

pocket.

Did you go back to the workshop for the same problem shortly afterwards?

Sr. No. Spare parts Number of customers

1 Yes 42

2 No 58

Table 19: Repetition of work


F I N D I N G S

&

RECOMMENDATIONS

FINDINGS


The overall customer satisfaction of service station namely S. P. Enterprises, Baramati

of Piaggio Vehicles Pvt. Ltd. is very good. Customers are happy with the dealership working

if we look at the overall picture. The after sales services are prompt and satisfactory.

Customers get the services fairly and easily. Customer retention of S. P. Enterprises is very

good.

But S. P. Enterprises does not give emphasis on the promotional aspect. The

proximity is the factor which is creating problem for PVPL to increase customer base through

this dealership. Many times the information about various types and aspects of after sale

services are not provided to the customers timely and in proper manner. The registration and

documentation of a new vehicle is bit complicated and time consuming process.

Overall performance of the dealership is very good. It is way ahead than its

competitors. But still the professional aspect is missing. And hence the PVPL is not able to

increase the customer base as it should, even if the performance of product line is great. The

sales executives rarely visit the villages under the service area of the dealership. There is

room for improvements. The dealership is not performing like the brand name ‘Piaggio Ape’

suggests. If the suggestions given will be implemented then it would really be an customer

oriented approach.

RECOMMENDATIONS


Set up Customers Friends Cell (CFC) in each village comprising of two senior

customers who are the users of product for more than 5 years and two young

customers who can devote their time to help other customers.

Conduct seminars and social events yearly. This will improve customer involvement.

Proper estimate of the cost and the time taken to repair should be given before only.

Some customers were not knowing about the AMC (Annual maintenance cost). The

dealer should suggest it before only to all the customers.

The customers to please interact with the service advisor about their problems.

Workplace should be increased for repairing as there is a queue formed in the

workshop.

Washing space should be increased.

Original spare parts in good condition should be sufficiently available in the

workshop as & when required by the customers.

At least two supervisors and service engineer should be present in the workshop to see

whether the mechanics are properly doing the work and they need to guide them time

to time.

At least 4 mechanics professional as well as non professional, are being given training

in a year rather than two.

Road test should be taken for every vehicle after the repairing is finished.

One service advisor should always be there when the customer arrives in the front

office to guide them.

A toll free number should be provided so that customers can call anytime to check the

status of work done.

A good ambience and cafeteria facility should be created at the service station to

make whole exercise enjoyable.

There should be separate washroom for customer and staff.

They must follow up with the customer because that gives the impression that Piaggio

is really caring for them.


C O N C L U S I O N

CONCLUSION


Customer Satisfaction plays pivotal role in any company’s improvement and its the

ultimate goal of any organization. It is great a learning experience to work with Piaggio

Vehicles Pvt. Ltd. I would like to conclude that three wheelers and light commercial vehicles

have great market potential.

During the project I learned about three wheeler products of Piaggio Vehicles Pvt.

Ltd. & the customers view about the product performance. I also came to know different

views of the customers about the services provided by the service work stations.

I also suggested some of my views to the customers and also to the S. P. Enterprise,

Baramati (dealer) how they can make their service much better. I understood the customer’s

problems, found the solutions with the service advisor and explained to them. From the

survey I found that some customers are dissatisfied with the product quality and some are

dissatisfied with the services provided by the dealer.

As the study concentrates to find the satisfaction level of customers of PVPL three

wheelers vehicle and from the findings it can be concluded that almost every area needs

improvement whether it is product quality, services or spares provided by the dealer

workshop. If these areas are improved systematically there is no doubt that customer will

receive more satisfaction and the future of this company will be glorious in the field of

automobile. At last I would say that I enjoyed every moment working with Piaggio Vehicles

Pvt. Ltd.

QUESTIONNAIRE


Customer Name :

Address :

Telephone number :

Vehicle Details :

o Registration number :

o Model Name :

o Purchased date :

o Engine number :

o Chassis number :

Distance travelled

o Total distance :

o Driven by Owner :

o Driven by Driver :

o Traveled distance per day :

o For how many distance are :

you giving your vehicle for servicing?

Customer Business Details :

If you had any other Vehicles :

Your rating for the dealer (out of 5) :

How many PVPL vehicle have you used in the past 5 years?

Are you satisfied with the overall performance?

Will you suggest others to buy Piaggio vehicles?

When was the last time your Piaggio vehicle was serviced with a PVPL dealer or

authorized service station?

Where did you take it for service? (Name of the dealer)

How was the overall experience?

Did you have to make an advance booking?

If your vehicle was under warranty was it immediately accepted or it took time for a

decision to be taken?

When the vehicle arrived at the service station, how long did it take for the vehicle to

be taken into the workshop and open job card?

Were the spare parts available in sufficient quantity and of proper quality?


Was the pricing of spare parts fair enough?

Are the spare parts available easily whenever needed?

How satisfied are you with the performance quality of Piaggio Ape?

How frequently the maintenance costs occur?

Did you interact with service advisor about your problem? Did he understand the

problems?

Was a road test taken?

Did the workshop give you a proper estimate of time and cost?

Was it delivered on time?

How frequently you change the tyres and oil?

What is the mileage of the vehicle?

Did you go back to the workshop for the same problem shortly afterwards?

How do you find the competence of mechanic in the workshop? Do they know their

jobs well?

Will you recommend others for service in this workshop?

Are you happy with the cleanliness and workshop infrastructure?

If you could make one suggestion that will help the dealer and PVPL to improve their

service to customers like you, what would be it?

What is your overall rating? (out of 5)


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