Second Phase - Dealership Incl

7/31/2019 Second Phase - Dealership Incl

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IN- DEPTH ANALYSIS

OF

AUTOMOBILE SECTOR

IN

KARNATKA

BY

ABHISHEK JAIN

ID NO. 1011038


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A REPORT

ON

MYSTERY SHOPPING, LOST CASE ANALYSIS

&

SYSTEMS AT DEALERSHIP

BY

ABHISHEK JAIN

ID NO. 1011038

APPROVED BY:

DR. ARCHANA PILLAI

A REPORT SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT OF PGDM (2011-13)

FOR

SUMMER INTERNSHIP PROJECT

AT

MARUTI SUZUKI INDIA LIMITED

BANGALORE

14 MAY 2012


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ACKNOWLEDGEMENTS

I would like to thank my company guide, Mr. Ritesh Khare, Mr. Rachit Raj, Mr.

Prasanth Uppala of Maruti Suzuki India Ltd. and the showroom team of Pratham Motors.

Their detailed comments, constructive suggestions, great patience and sincere encouragement

helped me to make my internship project an excellent opportunity to understand new things

with practical approach and in a more systematic and comprehensive way.

I am also highly grateful to my Faculty guide Prof. Archana Pillai, Institute of Management

Technology, Hyderabad, for her valuable inputs, kind support and constant encouragement

during the summer internship program.

I would also like to thank the academic staff at the Institute of Management Technology, for

their help during the period of my internship project. Particularly, I have benefited a lot from

lectures given by Dr. S. Subramanian, Dr. Nitin Gupta, Dr. Chakrapani Chaturvedula and Dr.

Sourabh Bhattacharya.

On a personal note I would like to thanks Mr. Manohar Bhat (Commercial Business Head)

and Mr. Vivek Anand (Regional Manager) for giving me the opportunity to work in the

leading automobile industry.

Finally, I would like to thank my parents, providing me this opportunity to study in this great

institute. Thank all my friends and relatives, who have given me support.

Submitted By,

Abhishek Jain

(1011038)


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TABLE OF CONTENTS

1. Introduction_________________________________________________52. Objective of Study____________________________________________73. External Analysis of Automobile Sector___________________________84. Mystery Shopping_____________________________________________95. Competitors_________________________________________________106. Maruti______________________________________________________147. Lost Case Analysis of Alto______________________________________168. Lost Case Analysis of Omni & Eeco_______________________________279. Systems in a Dealership_________________________________________3810.References___________________________________________________45


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INTRODUCTION

The automotive industry is increasingly becoming the backbone of the manufacturing sector

across the world. The importance received by the automobile industry in the economic

development and in the planning of Government policies has also increased significantly. The

industry has been growing over the years and meeting up with challenges as diverse as

transitions, consolidations and restructuring, and thereby adapting to the new market

conditions.

In the last few years, the industry has changed its locational preferences due to various

economic reasons. Earlier, the automobile industry was largely confined to North America,

Europe and Japan; however, with the emergence of developing economies, like Brazil, India

and China, the global automotive industry has been considering a different growth

perspective, and has been relocating the operations. These growing developing economies

has been evolving as the manufacturing hub, as also the newfound markets, for the global

majors like Ford, General Motors, Chrysler, Toyota, Honda, Nissan and BMW, who are

competing to enhance their market share in these developing economies. Increasing growth in

GDP and the growing disposable income has catapulted these emerging economies as marketfor automobiles, while the low cost of operations and skills in design and R&D made them as

destinations for investment and manufacturing operations.

The entry of global auto-majors into India has significantly altered the automobile-

manufacturing scenario in the country. The changes in design and adaptation of international

technologies have enabled the Indian automotive industry to compete globally, and thus are

also exposed to global challenges. Beside the challenges, the trend also presents huge

opportunities to Indian automobile industry, which needs to be capitalized, so as to emerge as

a successful global player.

A brief introduction about the tasks performed so far are as follows:-

1. Mystery Shopping:-Mystery shopping is a tool used externally or internally by companies to measure

quality of service or to check the compliance to regulation within the organization.

e.g. checking different parameters related to showroom ambience and dealership salesexecutive (DSE) at dealership.


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It is also used to gather specific information about companys products and services.

The mystery consumer's specific identity is generally not known by the establishment

being evaluated. Mystery shoppers perform specific tasks such as purchasing a

product, asking questions, registering complaints or behaving in a certain way, and

then provide detailed reports or feedback about their experiences.

It was done in two phases:-

Competitors dealerships Maruti dealerships

2. Lost Case Analysis:-There are many enquiries that are generated at the companys showroom. These

enquiries can be in term of Walk- In or telephone enquiries, etc. The enquiries that are

not converted into sales and are lost due to some reasons are known as lost cases.

The data of such customers are available with the dealership and is provided to us to

find out various reasons or factors that made customer to change their decision of

purchasing the car or if they did purchased the car then why not Maruti.

There are many factors which play an important role in this case such as DSE interest

or behaviour, the test drive and refreshments offerings, finance offered and properly

explained, etc.


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OBJECTIVES OF STUDY

1. Mystery Shopping:- To get an idea about competitors market. To get a brief of which car is a competitor according to the OEM. To check different parameters related to the DSE and showroom. To find out the difference between showrooms of same company and same

dealers.

To check the same parameters at Marutis showroom and suggest points ofimprovements.

2. Lost Case Analysis:- To find out the various factors related to the customers shifting their

purchase from Maruti to its competitors.

To draw out factors related to the customers who have postponed theirpurchases.

To draw out factors related to the customers who have cancelled theirpurchase.

To find how these factors can be minimised and can be improved so thatthe conversion rate goes up.

3. Systems at Dealership:- To see the pre-sales and post sales systems for new cars and true value

cars.

To find out the areas of improvements and suggest the same to thedealership team.


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External Analysis of Automobile Sector

Let us explain the external environment of the Automobile sector using Porters five forces

model, as follows:-

1. Entry:- There is a high entry cost involved in this market as the infrastructure and

technological requirements of this sector are pretty high. As one needs to build

it such as it can easily adapt technological changes.

It takes a long time to attain Economies of Scale. It takes time to establish your network, i.e., suppliers, dealers and service

stations.

2. Power of Input Suppliers:-The major suppliers of automobile industry are their raw material suppliers and

component manufacturers.

Power of suppliers depend on many factors as if the component that acompany want is a common component then the power of suppliers will be

low as competition will be high in that case.

If component is a specialised component and manufacturer require specialinvestment for that then in that case the power will increase.

Switching cost of suppliers is high as if there are component specificinvestment done then the sunk cost would be high but if the component is a

common component and its demand is high then in that case it would be low.

3. Industry Rivalry:-As the market is open now and more players are coming in like Volkswagen, Nissan,

Renault, etc. the rivalry is increasing day by day as buyers are having various options.

Degree of differentiation has increased as cars have different brands, differentfeatures.

The major different is due to the price of the car as the main difference iscreated by the entry level cars but due to the increasing disposable income of

the individuals they also focus more on differentiation, quality of the cars and

service competition.


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4. Substitutes and complements:-The major substitute to this market is second hand cars or pre-owned vehicles and

petrol prices. Increasing petrol prices have increased the demand of diesel vehicles in

India. The pre-owned market in India is 10% organised and 90% unorganised, from

which 30% is through a vendor or an agent and rest 70% is through direct dealings.

5. Power of Buyers:-Due to increasing industry rivalry in this industry the power of buyers has increased

tremendously. Earlier in 1980s there were a few cars available in India like HM

Ambassador, Fiat Padmini Premier and Maruti. But as market is opening more players

are coming in to the market as it is a market where there was a good growth during

the recession also.

India being one of the biggest developing economies and having great demandin this segment cant be neglected and that is what has led to many

manufacturers setting up their manufacturing facilities in India.

Due to available choices the switching cost of the buyer has reduced. e.g.Maruti Alto & Hyundai Eon.

Mystery Shopping

Mystery shopping is a tool used externally or internally by companies to measure quality of

service or to check the compliance to regulation within the organization. It was completed intwo phases; initially only competitors were covered and then all Maruti dealers.

Some of the common points that were checked during the first phase of the Mystery

Shopping are as follows:-

For Petrol Cars:-o Discountso Competitors as per the companyo Special or Limited offerso Discounts on previous year cars, if available.o Corporate Offers, if any.

For Diesel Cars:-o Waiting Periodo Competitors as per the companyo Discounts on previous year cars, if available.o Corporate Offers, if any.


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During mystery shopping, we also need to focus on some common points related to the

showroom as:-

Guard present or not Parking available, check for valet parking Overall display of cars in the showroom Greeting by the receptionist Overall ambience of the showroom

Some points related to dealership sales executive (DSE) are as follows:-

Is he/ she wearing uniform or not Are they carrying their name tag or not Technical skills Soft skills Ability to take up questions Is he/ she offering a test drive or not If test drive is offered than what is the condition of the car, is he/ she explaining every

feature of the car

Has he/ she offered any refreshments or not Is he/ she offering best deal as compared to other dealers Proper financing is offered and explained or not Follow Ups

Competitors

Our initial phase of mystery shopping started with the competitors, where we went to

different dealers and find out the above mentioned points regarding showroom ambience andDSE. Different parameters related to the competitors are explained as:-


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Company Strength Weakness Opportunity Threat

Hyundai Established n/w of

service stations and

dealership,

established brand,

Japanese tech.

The cars are not

economical

Hybrid Cars

and Electric

Cars

Increasing petrol

prices, threat from

new entrants.

Honda Brand calls for

high end or

premium

customers,

Japanese tech.

It is majorly into

petrol vehicles,

service station

available in very

less cities.

Hybrid Cars

and Electric

Cars

Increasing petrol

prices, availability of

good diesel cars,

threat from Brands

like VW, Nissan, etc.

Toyota Brand calls for

high end or

premium

customers,

Japanese tech.

Better diesel

engines are

available with

competitors

Hybrid Cars

and Electric

Cars

Increasing petrol

prices, threat from

new entrants

Ford It focuses on

middle and high

end customers,

established name in

world automobile

sector

No car at entry

level, service

station available

in very less cities.

Hybrid Cars

and Electric

Cars

Increasing petrol

prices, threat from

new entrants

Chevrolet Cars in every

segment

service station

available in very

less cities

Hybrid Cars

and Electric

Cars

Increasing petrol

prices, better offerings

from new entrants

Tata Established brand

name in India, FiatJV gives it one of

the best

technology,

established n/w

Tata is related to

trucks and its carare perceived as

hard to drive, i.e.,

no driving

comfort cars.

Hybrid Cars

and ElectricCars

Better positioned

brands and newentrants

Skoda High brand value service station

available in very

less cities

Hybrid Cars

and Electric

Cars

The major market lies

in entrant cars and

they are not focusing

on a niche segment

Nissan High brand

recognition

service station

available in very

less cities

Hybrid Cars

and Electric

Cars


in entrant cars and

they are not focusingon a niche segment

Volkswag

en

High brand

recognition,

German tech.

service station

available in very

less cities

Hybrid Cars

and Electric

Cars


in entrant cars and

they are not focusing

on a niche segment


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According to the DSEs the cars which are competing to their specific car are as follows: -

Honda Toyota Ford Hyundai

BRIO Etios

Liva

P

Etios

Liva

D

Etios P Etios D Ford

Figo P

Ford

Figo D

Ford

Fiesta

ClassicD

EON i10

ERA

i20 D Verna

D

Compet

ing Cars

I10,

Swift

Brio,

i10,

swift

Swift

, i20

Honda

city,

swift d,

Verna

Vento,

Swift D

Swift,

Polo

Swift,

Polo

Verna,

Dzire

Alto,

Spark

A

Star,

Beat,

Figo

Swift,

Polo

Vento,

Sunny,

Fiesta,

SX4

Tata Skoda Nissan Volkswagen Chevrolet

Vista

D

Indigo

D

Manza

D

Fabia

D

Rapid D Sunny

D

Micra D Vento

D

Polo D Beat D

Swift,

Ritz

Dezire Dezire,

SX4

Polo Sunny,

Vento,

Verna,

Fiesta

Verna,

Vento

Polo,

Pulse,

i20,

Swift,

Fabia

SX4,

Verna

Swift.

I20

Swift, Polo, Fabia,

Figo

Comparison of dealers on different parameters are shown as :-

1. Based on DSE Parameters:-Some of the DSE parameters which were checked at the dealership are as follows:-

Is he/ she wearing uniform or not Are they carrying their name tag or not Technical skills Soft skills Ability to take up questions Is he/ she offering a test drive or not If test drive is offered than what is the condition of the car, is he/ she

explaining every feature of the car

Has he/ she offered any refreshments or not Is he/ she offering best deal as compared to other dealers Proper financing is offered and explained or not Follow Ups


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Extent to which these parameters were met w.r.t. standards during our experience of mystery

shopping can be plotted as follows:-

2. Based on Showroom Parameters:-Some of the showroom related parameters that were checked during the Mystery

Shopping are as follows:-

Guard present or not Parking available, check for valet parking

Overall display of cars in the showroom Greeting by the receptionist Overall ambience of the showroom

Extent to which these parameters were met w.r.t. standards during our experience of

mystery shopping can be plotted as follows:-

90% 90%

80% 80%

70% 70% 70%

60% 60%

40%

Tata VW Toyota Ford Honda Skoda Hyundai Nissan Chevrolet Renault

DSE Parameters

90% 90% 90%

80%

70% 70%

60%

50% 50%

30%

VW Hyundai Nissan Ford Tata Toyota Honda Skoda Chevrolet Renault

Showroom Parameters


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Maruti

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a

subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian carmarket for over two and a half decades. The company has two manufacturing facilities

located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a

combined capability to produce over a 1.2 million (1,200,000) vehicles annually. The

company is planning to expand its manufacturing capacity to 1.75 million by 2013.

The company offers a wide range of cars across different segments. It offers 15 brands and

over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto,

Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara,

sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010

Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments.These include Eeco, Alto, Estilo, Wagon R and Sx4.

In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell

One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end March

2011). In 2010-11, the company sold over 1.27 Mn vehicles including 1,38,266units of

exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per

cent of the Indian passenger car market.

Maruti as being one of the oldest organisations in this sector in India has few core

competencies which can be explained by using a VRIO framework, as shown:-

Resources Valuable Rare Imitable Substitutable

Brand Name Yes Yes No No

Network Yes No No No

CustomerLoyalty

Yes No No No

Service Yes Yes Yes Yes

Reputation Yes Yes No No


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The same parameters were checked at Maruti Dealers and accordingly the positive points and

the areas of improvements were drawn out. The dealerships which were found to be among

the best are as follows:-

Kalyani Motors Pratham Motors, ORR RNS, Tumkur Road Bimal , New Airport Road

BCG matrix for Maruti can be given as:-

1. Star:-This is a segment where company is having high market share and high growth rate;

company should focus more on this segment depending on the related parameters.

The stars of Maruti are Swift and Swift Dzire.

2. Cash Cow:-In this segment company is having a high market share but the growth rate of this

segment is low, which means company need not to focus more on this segment as it

will keep on generating revenues without much investment. The cash cow of Maruti is

Alto, M800, Omni.

3. Question Mark:-This segment has high growth rate but low market share, which means that the growth

prospects in this segment is high. Maruti is focusing on MPV segment and haslaunched Eeco and Ertiga in this segment.

4. Dog:-This is a segment where company is having relatively low market share and low

growth rate. The dogs for Maruti in Karnatka region are Estilo, A Star.


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Lost Case Analysis of Alto

There are many enquiries that are generated at the companys showroom. These








explained, etc.

I got the data from the company dealers regarding the cases which were lost and I

called back all customers and took their feedback and try to found out that what was

the reason that made them to change their decision of purchasing the car. The sample

size was between 100 to 150.

This task involved calling up all the people who came for enquiry of the cars but

didnt purchased him and to find out the reason behind it.Some of the learnings are:-

DSE is the most important point of the sales, i.e., if a DSE wins the confidenceof the customer then the probability of sales increases. It depends a lot on thesoft skills of the DSE, as if showroom is not that good but the DSE is then it

assures customer that he will be getting better service in future.

Some people have postponed their plans due to some personal reasons, due tosome financial issues or they have a change of segment, i.e., they want to

spend more and go for some high end car.

These all parameters can be taken care by proper follow up by the DSE.


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1. Alto F8:-Age profile of the sample data is shown as:-

Overall observations based on the analysis are shown as:-

The above graph shows that 31% of the customers have postponed there decision

of buying the car for some reason, whereas 37% of the customers have said that

they are not interested in purchasing any car at present, 6% of the customers

purchased Maruti car but from other dealers, 12% of the customers purchased

some other car, i.e., not a Maruti car, 1% of the customer have already purchased

17.32%

25.20%

11.81%

16.54%

13.39%

7.09%

3.15%

5.51%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

21-25 26-30 31-35 36-40 41-45 46-50 51-55 >55

Age Profile of Samples

31%

37%

6%

12%

1%6%

7%

Alto F8

Postponed Cases

Not Interested

Lost to Co dealers

Lost to Comp.

Purchased the Car

Lost to other models

Preowned Cars


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the car from the same dealer, 6% of the customers purchased other car of Maruti,

whereas 7% of the customers purchased pre-owned or second hand cars.

On further analysis of each factor we found that there was some common reason

or factors given by the customers for their actions. Let us now further analyse

each factor. When we further analysed the main reasons for the postponed cases,

we found that:-

The above graph shows that 18% of the customers out of 31% of the total cases

told that they have postponed there decision of purchasing the car due to some

financial problems, 31% of them said that they are still deciding that whether they

should go with a petrol car or a diesel car, 3% of them said that they might get a

transfer to other city so they are waiting for that but in the case they dont got

transfer they will go with the car, 3% of the customer said that they are waiting for

a good offer, i.e., if they get a better deal with other cars they can go with it also,

18% of them said that they will purchase the car in next 2-3 months, i.e., these

enquiries were still live or active and 27% of them told us that they have

postponed there decision of purchasing the car due to some personal reason.

When we further analysed the main reasons for the cases who told that they were

not interested, we found that:-

18%

31%

3%3%

18%

27%

Postponed Cases

Financial Issues

Deciding b/w petrol &

Diesel Car

Wating for transfer

Waiting for a good Offer

Live (next 2-3 months)

Personal Reason


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When we further analysed the cases who said that they have purchased the car of

our competitor, we tried to find out that which competitor took what percent of the

customers and the main reason of the customer for going for that competition car

out of 12% of the cases which were lost to competition:-

As shown above, around 51% of the customers purchased Hyundai cars out of

which 38% purchased i10 as it had very good discounts and offers at that time and

has better looks as compared to Alto, 23% purchased Eon as it was a new car and

had better looks as compared to Alto. Around 16% of the customers purchased

Tata cars out of which 8 % purchased Nano as it is pocket friendly and 8%

purchased Indica diesel due to its space and due to its low running cost on diesel,

around 8% of the customers purchased Chevrolet car and it was Beat as it had

better looks as compared to Alto, whereas 15% of the customers purchased

Toyota Etios Liva as they felt that it was a high-end hatchback having better looks

as compared to Alto.

38%

8%23%

8%

15%

8%

Lost to Competition

i10

Nano

EON

Beat

Etios Liva

Indica


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When we further analysed the reasons for the cases which were lost to Marutis

cars, we found that which car took how many customers and resulted into brand

cannibalisation of Alto, the results are shown as:-

The above graph shows that 28% of the customers out of 6% of the total cases told

that they purchased Wagon R, 29% purchased Eeco, 29% purchased Swift Diesel

and 14% purchased Ritz Diesel.

When we further analysed that which pre owned cars were purchased by the

customers, we found that:-

As shown above 29% of the customers out of 7% of the total cases told that they

have purchased a second hand Alto car, 29% purchased second hand Maruti 800,

14% purchased second hand Ritz Diesel, 14% purchased second hand Honda City

and 14% purchased second hand Zen.

28%

29%

29%

14%

Lost to other Models

Wagon R

Eeco

Swift- Diesel

Ritz- Diesel

29%

29%

14%

14%

14%

Lost to Pre Owned Cars

Alto

Maruti- 800

Ritz

Honda City

Estilo


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2. Alto K10:-Age profile of the sample data is shown as:-


The above graph shows that 24% of the customers have postponed there decision

of buying the car for some reason, whereas 31% of the customers have said that


purchased Maruti car but from other dealers, 12% of the customers purchasedsome other car, i.e., not a Maruti car, 7% of the customer have already purchased

20.83%

26.67%

12.50%

16.67%

8.33%

5.00%

2.50%

7.50%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

21-25 26-30 31-35 36-40 41-45 46-50 51-55 >55

Age Profile of Samples

24%

31%13%

12%

10%

3%7%

Alto K10

Postponed Cases

Not Interested

Lost to Co dealers

Lost to Comp.

Lost to other models

Preowned Cars

Purchased the Car


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the car from the same dealer, 10% of the customers purchased other car of Maruti,

whereas 3% of the customers purchased pre-owned or second hand cars.

On further analysis of each factor we found that there was some common reason

or factors given by the customers for their actions. Let us now further analyse

each factor.

When we further analysed the main reasons for the postponed cases, we found

that:-


told that they have postponed there decision of purchasing the car due to some

financial problems, 9% of them said that they might get a transfer to other city so

they are waiting for that but in the case they dont got transfer they will go with

the car, 30% of them said that they will purchase the car in next 2-3 months, i.e.,

these enquiries were still live or active and 22% of them told us that they have

postponed there decision of purchasing the car due to some personal reason.

When we further analysed the main reasons for the cases who told that they were

not interested, we found that:-

39%

9%

30%

22%

Postponed Cases

Financial Issues

Wating for transfer

Live (next 2-3 months)

Personal Reason


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The above graph shows that 3% of the customers out of 31% of the total cases told

that they are not interested in purchasing the car and they have enquired it for a

friend or a relative, whereas 7% of them told that they never enquired for the car,

whereas 83% doesnt revealed there reason for not being interested and told that

its their personal choice or reason that they are not interested in the car, whereas

7% of the customers told that they have retained their old car and will decide to go

with a new one after some time.

When we further analysed the cases who said that they have already purchased the

car, we tried to find out that which dealer took what percent of the customers from

this dealer out of 13% of the cases which were lost to co- dealers:-

3%

7%

83%

7%

Not Interested

Enquired for a friend

Not Enquired

Personal Reason

Retained Old Car

46%

8%

15%

15%

8%

8%

Lost to Co-Dealers

Bimal

Sagar

Garuda

kalyani

Pratham

Purchased from Mysore


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As shown above, 46% of the cases were lost to Bimal, 8% to Sagar, 15% to

Garuda, 15% to Kalyani, 8% to Pratham whereas 8% told that they have

purchased the car from Mysore.

When we further analysed the cases who said that they have purchased the car of

our competitor, we tried to find out that which competitor took what percent of the

customers and the main reason of the customer for going for that competition car

out of 12% of the cases which were lost to competition:-

As shown above, around 50% of the customers purchased Chevrolet cars out of

which 16.7 % purchased beat diesel, 16.7% purchased beat petrol and rest

purchased Spark, the main reason for purchasing Beat was that it had good looks

and the reason for purchasing Spark was that it had more space as compared to

Alto and it was immediately available as compared to Alto, around 33% of the

customers purchased Hyundai cars out of which 9% purchased Eon as it was a

new car and had better looks as compared to Alto, 8% purchased i10 as it had very

good discount offers at that time, 8% purchased i20 and 8% purchased Santro as it

had more space and was their family choice. 8% of them purchased Nissan Sunny

Diesel, whereas 8% of the customers purchased Toyota Etios Liva as they felt that

it was a high-end hatchback.

17%

17%

9%

8%8%

17%

8%

8%

8%

Lost to Competition

Beat- Petrol

Beat- Diesel

EON

i10

i20

Spark

Nissan Sunny- Diesel

Santro

Etios Liva- Petrol


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When we further analysed the reasons for the cases which were lost to Marutis

cars, we found that which car took how many customers and resulted into brand

cannibalisation of Alto, the results are shown as:-


told that they purchased Wagon R, 10% purchased Estilo, 20% purchased Swift,

10% purchased Eeco, 10% purchased SX4 and 10% purchased A Star.

When we further analysed that which pre owned cars were purchased by the

customers, we found that:-

As shown above 67% of the customers out of 3% of the total cases told that they

have purchased a second hand Alto car whereas 33% of them have purchased

Santro car.

40%

10%20%

10%

10%

10%

Lost to other Models

Wagon R

Estilo

Swift

Eeco

SX4

A Star

67%

33%

Lost to Pre Owned Cars

Alto

Santro


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Lost Case Analysis of Omni & Eeco

There are many enquiries that are generated at the companys showroom. These








explained, etc.

I got the data from the company dealers regarding the cases which were lost and I

called back all customers and took their feedback and tried to found out the reasons

that made them to change their decision of purchasing the car. The sample size was

between 100 to 150.

One of the main reason of doing the analysis between Omni and Eeco was also to find

out if Eeco is resulting into the brand cannibalisation of Omni, which could be easily

seen by seeing the graphs of lost to other models or pre-owned cars.

This task involved calling up all the people who came for enquiry of the cars butdidnt purchased him and to find out the reason behind it. Some of the learnings are:-

Customer of this segment is mainly concern about the finance related issuesand about the interest rate offerings.

DSE is the most important point of the sales, i.e., if a DSE wins the confidenceof the customer then the probability of sales increases. It depends a lot on the

soft skills of the DSE, as if showroom is not that good but the DSE is then it

assures customer that he will be getting better service in future. Some people have postponed their plans due to some personal reasons, due to

some financial issues or they have a change of segment, i.e., they want to

spend more and go for some high end car.

These all parameters can be taken care by proper follow up by the DSE.


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1. Omni:-Age profile of the sample data is shown as:-


The above graph shows that 27% of the customers have postponed there decisionof buying the car for some reason, whereas 38% of the customers have said that


purchased Maruti car but from other dealers, 5% of the customers purchased some

other car, i.e., not a Maruti car, 5% of the customers purchased other car of

Maruti, 5% of the customers purchased pre-owned or second hand cars, whereas

6% of the customer have already purchased the car from the same dealer.

3%

15%

23%

12%12%

6%

19%

2%

9%

0%

5%

10%

15%

20%

25%

>20 20-25 25-30 30-35 35-40 40-45 45-50 50-55 5520 20-25 25-30 30-35 35-40 40-45 45-50 50-55 55

Second Phase - Dealership Incl

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Transcript of Second Phase - Dealership Incl