Customer satisfaction and loyalty of hyundai Essay

The history of the automobile begins as early as 1769, with the creation of steam engined automobiles capable of human transport. [1] In 1806, the first cars powered by an internal combustion engine running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. The year 1886 is regarded the year of birth of the modern automobile – with the Benz Patent-Motorwagen, by German inventor Carl Benz. Cars powered by electric power briefly appeared at the turn of the 20th century, but largely disappeared from use until the turn of the 21st century. The early history of the automobile can be divided into a number of eras, based on the prevalent means of propulsion. Later periods were defined by trends in exterior styling, and size and utility preferences. 1. 1HISTORY OF CARS Old Engraving depicting the 1771 crash of Nicolas Joseph Cugnot’s steam-powered car into a stone wall. The automobile as we know it was not invented in a single day by a single inventor. The history of the automobile reflects an evolution that took place worldwide. Starting with the first theoretical plans for a motor vehicle that had been drawn up by both Leonardo da Vinci and Isaac Newton. In 1769, the very first self-propelled road vehicle was a military tractor invented by French engineer and mechanic, Nicolas Joseph Cugnot (1725 – 1804). Cugnot used a steam engine to power his vehicle, built under his instructions at the Paris Arsenal by mechanic Brezin. It was used by the French Army to haul artillery at a whopping speed of 2 1/2 mph on only three wheels. The vehicle had to stop every ten to fifteen minutes to build up steam power. The steam engine and boiler were separate from the rest of the vehicle and placed in the front (see engraving above). The following year (1770), Cugnot built a steam-powered tricycle that carried four passengers. Early Electric Cars Steam engines were not the only engines used in early automobiles. Vehicles with electrical engines were also invented. Between 1832 and 1839 (the exact year is uncertain), Robert Anderson of Scotland invented the first electric carriage. Electric cars used rechargeable batteries that powered a small electric motor. The vehicles were heavy, slow, expensive, and needed to stop for recharging frequently. INTRODUCTION TO INDIAN MARKET The present Indian economy is characterized by increasing in the consumption rate. Today Indian market is exposed to a lot of competitions not only from the domestic players but also global players. The competition in the market is driving every manufacturer to cut costs and focus on satisfying the customer which will surely help him retain his market share and also to enhance it. The customers delight in the business world of marketing today. All the marketers are oriented themselves towards it. 1. 2 MARKETING MARKET The term market is derived from the Latin word ‘Marcatus’ which means trade, merchandise or plan of business. It means interaction of the buyers and sellers in the person or through telephone, telegraph, mail etc. MARKETING Marketing is a comprehensive term. It is not a mere exchange of goods and services. It includes all those activities connected with the process of identifying the needs of the customer and then organizing the business accordingly to meet the needs of the consumer. â€Å"Marketing is a social and managerial process by which individuals and group obtain what they need and want through creating, offering and exchanging products of value with others†. Philip Kotler â€Å"Marketing is the total system of interacting business activities designed to plan, price, promote, and distribute wants satisfying products and service, to present and potential customers†. Professor William Stanton. CONSUMER PERCEPTION The term perception refers to the complete act of ‘perceiving’ and involving of the psychological factors. Perception is the process by which the mind receives organizes and interprets a particular thing. It is estimated that 90 percent of the stimuli that the individual perceives come through sight and the rest from learning. Price is another element of marketing mix where perception has its implication. The basis of perception We know that sight perception depends on the flow of photons in through the pupils and absorbed in the retina. Therefore with the operation of our senses we do know there is something there can and is influencing the sensory mechanisms within ourselves but we do not necessarily know what it is that is causing the sense of experience. This gives rise to two levels of perception. The first is called immediate perception and is totally physical the operation of the physical universe following its mechanistic path ways, some of which happen to occur as neural events in our brain. The second level of perception is the interpretative perception where our psychology and attention is implicated in the perceptual act. Immediate perception is direct mediated only by physiology of perceiving species. Moving beyond immediate perception such as when a person attends to what they are perceiving, then all the well known aspects come to the fore. The obvious consequence is that we do not necessarily perceive that which we immediately perceive. The mechanism of immediate perception area set of physical events in the physical universe. The external reality is generating a perpetual field that is influencing the eye, which in turn is influencing the neurons of the visual cortex. The visual cortex is the reacting part. The interaction of the visual cortex with other parts of the brain and central nervous systems represented by the arrows to thought and emotion is the beginning of the analysis of the complete act of perception involving the emotive and interpretative elements. This model of immediate perception says that we immediately perceive reality via the effect a perceptual field has no sensory apparatus of our physiology. The study of consumers helps firm and organizations improve their marketing strategies by understanding issues such as: The psychology of how consumers think, feel, reason, and select between different alternatives ( e. g. brands, products). The psychology of how the consumer is influenced by his or her environment (e. g. , culture, family, signs, media). The behavior of consumers while shopping or making other marketing decisions. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. How marketers can adopt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. Understanding these issues help us adopt our strategies by taking the consumer into consideration. We also learn that consumer’s will sometimes be persuaded more by logical arguments, but at other times will be persuaded more by emotional or symbolic appeals. By understanding the consumer, we will be able to make a more informed decision as to which strategy to employ. CONSUMER BEHAVIOUR One official definition of consumer behavior is â€Å"The study of individuals groups, or organizations and the processes they use to select, secure, use, dispose of products, services experiences or idea to satisfy needs and the impacts that these processes have on the consumer and society. † This definition brings up some useful points. ?Behavior occurs either for the individual, or in the context of a group (e. g. , friend’s influence what kinds of clothes person wears) or an organization (people on the job make decisions as to which products the firm should use). ?Consumer behaviour involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e. g. , motor oil being sent to sewage systems to save the recycling fee, or garbage piling up at landfill) this is also an area of interest. ?Customer behavior involves services and ideas as well as tangible products. ?The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods or aggressive marketing of easy credit may be serious repercussions for the national health and economy. There are several units in the market that can be analyzed. The main trust in this course is the consumer. However we will also need to analyze our own firm’s strengths and weaknesses and those of competing firms. Finally, we need to assess the marketing environment although we may have developed a product that offers great appeal for consumers a recession may cut demand dramatically. WHO IS THE CUSTOMER? We all think of customers as the people who sit at our tables and pay for the goods and services purchased. But they are individuals in their own right. They may be business people, tourists, youngsters, retired couples or celebrities. They cannot be looked upon as an amorphous group – their needs are different and your service should reflect that. †¢A customer is the most important person in our business. †¢A customer is a person who comes to us with needs and wants and it is our job to handle them in a manner that is profitable to him/her and ourselves. †¢A customer is not a cold statistic; he/she is a human being with feelings and deserves to be treated with respect. †¢A customer is not an interruption to our work – he is the purpose of it. We are not doing him a favour by serving him, he is doing us a favour by giving us the opportunity to do so. †¢A customer deserves the most courteous attention we can give. Customers are not dependent on us, we are dependent on them ! A Customer is anyone who receives the work you do! CUSTOMER SATISFACTION Winning customers’ hearts and minds is increasingly important to customer acquisition and customer retention. It is no coincidence that customer satisfaction research accounts for much of market research activities. As competitive advantage and differentiation is achieved through product innovation and service performance (rather than competing on cost), it is vital to monitor and manage customer satisfaction levels. Customer satisfaction is not just about service levels or product attributes. It can be seen as a function of two main components: ? perceptions of product and service levels received ?expectation of product and service levels Customer satisfaction is therefore concerned with service delivery/product performance and expectation management. Customer satisfaction research delivers key benefits: †¢understanding the underlying drivers of satisfaction †¢identification of trigger points where satisfaction management is most needed †¢prioritisation of action areas (minimum input for maximum return) †¢Identification of customer-supplier interactions, internal processes and departments most likely to cause satisfaction/dissatisfaction. Impact on loyalty and propensity to recommend; a vital bottom line measurement CUSTOMER SATISFACTION ALSO HELPS YOU TO GET TO GRIPS WITH Customer Expectations Attitude and Behaviour Personal Appearance Maintaining Standards Handling Complaints Getting it Right First Time COMPANY PROFILE 2. 1 ORIGIN OF THE COMPANY HYUNDAI MOTOR COMPANY The Hyundai Motor Company (HMC) was founded in 1947 as Hyundai Engineering and Construction Co. by the late Ju-Yung Chung. Hyundai Motor Company, established in 1967, is the auto sales leader in the Korean domestic market and exports vehicles to 190 countries worldwide. Hyundai Motor Company operates the world’s largest integrated automobile manufacturing facility in Ulsan, on Korea’s southeast coast. In 1996, Hyundai opened the Namyang Technology Research Center, which includes a complete testing facility with a 2. 8-mile oval test track and a new $40 million aero acoustic wind tunnel. That same year, 1996, HMC began production at its state-of-the-art Asan Plant, located southeast of Seoul. Hyundai now operates eight research centers in Korea along with four international centers, including Hyundai America Technical Center, Inc. in Ann Arbor, Michigan, and the Hyundai California Design Center in Irvine, California. Hyundai’s automotive technology centers employ approximately 4,100 researchers with an annual budget of five percent of current revenues. Current research projects include: electric-powered vehicles, low-emission gasoline engines, solar-powered vehicles, hydrogen-powered fuel cell vehicles and other alternative fuel vehicles. Hyundai Motor India Limited (HMIL) Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, S. Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 18 variants of passenger cars across four models, the Santro in the B segment, the Accent in the C segment, the Sonata in the E segment and the Santa Fe in the SUV segment 2. 2 MARKET SHARE When Hyundai Motor India Ltd (HMI) started producing cars at a place called Irrungattukottai near the South Indian city of Chennai in September 1998 Cut to 2004. The integrated manufacturing plant set up at an initial investment of US$ 614 million is now the largest manufacturing facility of Hyundai outside Korea. Hyundai India has a market share of about 20 per cent, and its plant rolls out about 600 – 700 cars per day in two shifts. Hyundai India today sells not two but seven brands – Santro, i10, i20, Verna, Elantra, Sonata and Santa Fe. These cars are sold and serviced by a national network of 300 sales and service outlets. HMI’s Santro and Accent are India’s largest selling brands in the B and C segments. The Santro was rated the â€Å"Best Small Car† in the JD Power Asia Pacific Initial Quality and APEAL studies for three years in a row, and continues to be one of India’s three most preferred compact cars. The same car is now making important inroads in Europe. Hyundai India sold 42,113 cars in 2012-13, and this year, the are planning to target the largest and most competitive market of them all now, with localisation levels of over 90 percent and the capability to produce world-class automobiles, Hyundai has made India its small carhub. Businessworld magazine reported in January this year that Hyundai is upping its annual export capacity so that by 2013 it can export 500,000 small cars from its production base in Chennai. The market shares of leading players for the month of Mar, 2013 is as given below. COMPANYMARKET SHARE Maruti 42. 4 % Hyundai Motors24. 4 % Mahindra09. 9 % Chevrolet11. 5 % Volkswagen03. 9 % Honda02. 1 % Toyota01. 7 % Others04. 1 % TOTAL100 % A BRIEF OVERVIEW OF TRIDENT HYUNDAI Introduction Trident Hyundai started in 1998 at Bangalore with 30 employees and just one Customer Care Centre. Today, Trident Hyundai has over 600 employees spread over Bangalore, Shimoga and Davengere. The philosophy â€Å"Drive Home a Relationship† is a way of work life and is reflected in our deep rooted commitment almost bordering on obsession towards customer satisfaction. This has helped us in setting up new benchmarks in dealership operation and procedures that has been replicated by other automobile dealers in India. We are recipients of many accolades for excellence in the areas of sales, services and finance. We are also an ISO 9001:2000 Company accredited by TUV and have joined the elite group. Trident Hyundai offers a perfect career for those who have the flair to excel at work. Freedom of expression and a conducive work environs foster the employees to exploit their talents to the fullest abilities. Palace Orchard at Bangalore has virtually become a landmark of Country’s few multilevel automobile dealership. Our Customer Care Centres are conveniently spread at Yeshwanthpur, Indira Nagar, JP Nagar, Sheshadripuram and Kalyan Nagar with state-of-the-art equipments and qualified technicians to cater customer needs. Our goal extends beyond customer satisfaction and we are committed in achieving total â€Å"Customer Delight†. BRANCHES Trident Hyundai 46/4, Garvebhavi Palya, Begur Hobli Hosur Road Bangalore – 560068 Tel: 080-43433222 Trident Hyundai No. 9, HAL Airport Road, Kodihalli, Next to Carlton Towers Bangalore-560014 Tel: 080-43431111 Trident Hyundai No. 1, Lower Palace Orchards Sankey Road, Next to Cauvery Theater Bangalore – 560003 Tel: 080-43433333 Trident Hyundai No. 111,122 & 125, B Narayanpura, K. R Puram, Bangalore-560016 Tel: 080-67879191 2. 4 PRODUCT PROFILE A. Hatchbacks SANTRO Xing Santro Xing with it’s new aerodynamic styling, power-assisted brakes, the advanced suspensions, the uniquely responsive technology is as much a magnificent creation of our drive to delight you as much as a benchmark in engineering excellence. Santro is being produced exclusively in India and the Indian Xing will now drive the World. I10 1. The BSIV compliant 1. 2 Kappa2 engine with VTVT achieved a spectacular fuel mileage of 20. 36 km/litre 2. Best in class ARAI-Certified fuel efficiency among petrol cars in India I20 The Winner of the Prestigious ‘Viewer’s Choice Of The Year’ and ‘Desighn Of The Year’ Awards, the i20 is all set to sweep you of your feet once again. Reflecting Hyundai’s design identity, fluidic sculpture, the new i20 boasts more aggressive and stylish design, giving you extra confidence on the road. The New Hyundai i20 is full of clever technology and smart features. Automatic headlamps, Rain Sensing wipers, Cluch lock function, a rear view parking camera and rear parking sensors are standard on Style models EON B. Sedans Verna Fluidic The 1. 6 L VTVT engine is a powerhouse which is refined to deliver best-in-segment 123ps@ 6300 rpm leaving the competition way behind. The engine is tuned to generate optimum efficiency without compromising on power. The new Verna also offers a 1. 4 L VTVT which boasts of similarly unbeatable performance and best-in-segment mileage of 17. 43 Km/L. The Verna features an ABS system and six airbags, including dual front airbags, curtain airbags and side airbags, for better safety ELANTRA The New Elantra comes perfectly handy for all occasions. Speed, agility and power come as standard equipment in Elantra. The design is a culmination of European styling and delightful functionality SONATA Sonata’s sophistication really shines from all angles together with its impressive rear view with its subtle curvature, fine details and unique rear combination lamps. The Sonata is built like a fortress. The car body incorporates numerous structural protection elements like, dual side impact beams, the energy absorbing collapsible steering column, front and rear crumple zones, cross-bar under the dashboard, engine sub-frame and reinforced bumpers together with the ABS (Anti-locking Braking System), TCS (Traction Control System) and the optional SRS airbag which provides maximum C. SUV Santa Fe The Santa Fe’s craftsmanship is inspired by the heart and completed with technology. You will continue to be pleaseantly surprised by the features you discover throughout the vehicle when driving or parked. SAFETY ANTI-LOCK BRAKING SYSTEM(ABS) All cars come with few variants fitted with the revolutionary ABS, as a standard feature. ABS provides improved braking performance and directional stability on slippery surfaces CRUMPLE ZONE The crumple zones in the new Santro Xing have been further reinforced to conform to the strictest of global safety norms and tested for frontal and offset impact in the most gruelling test track conditions, so that you drive away with complete peace of mind. The steering column is fully collapsible and minimizes risk of chest injuries in the event of a frontal impact The passenger cabin is an original three-box design and is protected by reinforced steel sections in the front and back, dual side-impact bars on all doors and large crumple zones in front and rear. The Accent has been Crash Tested to conform to global safety norms and provides optimum driver and passenger safety Specially designed to protect the passengers in the event of panic braking, these seats prevent the occupants from sliding forward and hurting themselves. The Sonata incorporates numerous structural reinforcements like dual side-impact beams, an energy- absorbing collapsible steering column, front & rear crumple zones, cross-bar under the dashboard, an engine sub-frame and reinforced bumpers that make the car a virtual fortress on wheels. The SRS Driver and Passenger Airbags come as standard on the Sonata V6 and as an option on the Sonata Gold. They come as an exclusive package together with ELR Seat Belts and Seat Belt Pretensioners and Load Limiters and provide maximum protection. Integrated with ABS, the EBD apportions braking power between the front and the rear axles according to the number of passengers and weight of the cargo in the trunk for safer, straight line stops. The handsomely sculptured headlamps cluster with four bulbs & clear lens ensures superior nighttime visibility. The projection type fog lamps comes handy in inclement weather conditions. The science of absolute control. Prevents skidding on a slippery road or during harsh braking, also maintains steer ability. Electronically apportions the brake force between the four wheels for optimum braking performance. Safety Cell Construction The protective safety cell sits between fore and aft crumple zones that absorb impact forces and keep the driver and passengers out of harms way. Side Impact Protection Front and rear doors are reinforced with special high tensile strength steel members that help absorb side impact forces. Seat-Belt Seat belt pretensioner with load limiter reduces the risk of chest injuries. The ultimate in driver and passenger safety. Detects slip in the rear wheel & pulls the vehicle out of difficult & unsafe terrain. The ladder frame chassis constructed of heavy-duty gauge steel is designed to withstand massive twisting & flexing safely. The superbly silent HVAC system in the Accent maintains the most comfortable climate inside the car irrespective of the outside temperature. An ultra-sensitive automatic temperature sensing coupled with a powerful aircon and heating system delivers omni-directional air-flow through specially designed flow control ducts and instantly responds to external temperature changes to keep the cabin climate perfect. The Noise, Vibrations and Harshness dampering is a function of the intelligent design of the Accent. Every single component in this car has been designed to work in perfect harmony so that you can enjoy complete peace and quiet inside your car. This feature makes sure that your driving experience in an Accent is not just effortless, but fun as well. While the steering wheel can be easily ‘Tilted’ at different convenient angles for easy adjustment, the ‘Power steering’ gives you greater control of the vehicle, not only in city driving conditions but also in case of accidents like tyre bursts. The Accent comes equipped with a tilt & a height cushion adjustment along with sliding and reclining controls that ensure perfect posturing and the best back and thigh support for a completely relaxed driving experience. 3. 5 SOCIAL RESPONSIBILITY Hyundai, as a responsible corporate citizen is committed to sustainable social development and the preservation of the environment. All the company’s key manufacturing units, including the Indian plant have the ISO 14001 certification for its Environment management practices. As a part of its social responsibility programs, the company conducts various campaigns to spread awareness of in-car safety and safe driving practices, particularly targeted against drunken driving, speeding. As a part of its community development projects, the company has adopted a few villages around its factory in Tamilnadu and has been working towards the social and economic development of these villages, assisting them in the areas of primary health care, education, basic amenities and employment opportunities. 3. 6 AWARDS AND ACHIEVEMINTS -SONATA RANKED â€Å"MOST DEPENDABLE MIDSIZE CAR† J. D. POWER AND ASSOCIATES 2013 VEHICLE DEPENDABILITY STUDY -ELANTRA SEDAN EARNS A 2013 ALG’S HIGHEST RESIDUAL VALUE AWARD -SANTA FE RECEIVES A 2013 ALG’S HIGHEST RESIDUAL VALUE AWARD. – ELANTRA – NAMED ONE OF THE 10 BEST GREEN CARS OF 2012 BY KELLEY BLUE BOOK’S KBB. COM. ELANTRA HAS EARNED THIS AWARD FOR THE SECOND STRAIGHT YEAR 3. 7 FUTURE PROSPECTS The R;D team focuses on the development of new products and technologies that include interior and exterior design changes, development of new generation engines and alternate fuel systems, concept vehicles and advanced passenger safety and comfort systems, in line with evolving customer preferences across the globe. Recent successes of the team include the development of the Hyundai patented Common Rail Direct Injection (CRDi) engine in association with Detroit Diesel and the award winning Fuel Cell Santa FE. EFFORTS Some of the ongoing projects that the Hyundai R;D team is involved in include the development of the ‘World Engine’ in association with Daimler Chrysler and Mitsubishi and the development of Automotive Telematics in association with IBM. That the efforts of the Hyundai R;D team has paid great dividends to the company is evident from the fact that the company’s newly engineered products like the Santa Fe and the Getz have made waves in the global automotive markets and the ‘US Consumer Reports’ magazine has ranked Hyundai cars in level with that of Honda in its recent quality rankings Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. Living up to its commitment of providing global standards of quality and process management in India, Hyundai had put in place an Environment Management System (EMS)at its manufacturing plant in Chennai right from its project stage. The certification process was completed in a record time of 10 months with ‘Zero NCRs’. The assessment was done by TUV SUDDEUTSCHLAND and covered areas like Awareness Training, Technology Upgradation, Recycling, Waste Management and fulfilling Government Regulations. HMI is also working on a backward integration strategy that will support vendors of the company in implementing EMS. Hyundai Motor Company, S. Korea, the parent of HMI, has been doing considerable work on sustainable Environment Management The company has a well defined framework in place for developing products that reduce pollutant emissions and processes for preservation of natural resources and energy along all the stages of the product lifecycle from production, sales, use to disposal. The company has also been in the forefront of development of environment friendly technologies like Hybrid Electric Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001 certification for all its three major plants in Ulsan, Asan and Jeonju in S. Korea.