Customer satisfaction after sales & services of mahindra&mahindra


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Study on Customer satisfaction in Mahindra& Mahindra Tractors

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Customer satisfaction after sales & services of mahindra&mahindra

  1. 1. After Sales & Services INTRODUCTION:- This study will help to find the level of Customer satisfaction of the Customers in the authorized M&M service station in Hassan dist. To know the reason for decline of customers at service station, to know the perception of customers regarding the charges or rates offered by the service station and to know any suggestion from customers to improve the service. The study is scheduled through primary data and other information thereby preparing Questionnaire, which focuses of various variables, and attributes that are important to know the satisfaction level and the factors affecting the purchase decision. Serving the consumer demand with the help of marketing channels, and then in turn, expanding the market even in the face of keen Competition. The marketing objectives, developed the marketing plan, or program and control the marketing program to assure the accomplishment of the marketing objectives. Marketing begins with the customer, not with production cost, sales, technological and marks and it ends with customer Satisfaction and social well-being. Marketing covers all business activities necessary for ascertaining market demand, planning, and product availability, affecting transfer of ownership of products, providing for their physical distribution and facilitating the entire marketing process. Tractor, a self-propelled unit used to pull loads, to carry and operate tillage, cultivating and harvesting machinery and to provide power through the suitable belt pulley, power take off, or other power outlet, to drive stationary and drawn implements and machines, As distinguished from “traction engines", which were self propelled steam engine tractor are powered with internal combustion engines. The word" Tractor" was coined by combining parts of the words TRACTION and MOTOR, and was first noted in a patents issued in the united states in 1890. This project report is an academic excursive for discussing in general in marketing of tractor and probing into the marketing of Mahindra tractors in particular. The secondary and primary data have been collected for the purpose and this recommendation have been given for the improvement of marketing strategy of tractors in Ganesh agro tractors and services in particular. H R Institute of Higher Education, Hassan Page |1
  2. 2. After Sales & Services Problem Statement:- In today’s competitive world customer plays an important role in every business. The main purpose of every business is to satisfy its existing customers and attract a new customer which is also known as acquiring customers. Based on the above statement I have decided to take up my academic project on “A STUDY ON CUSTOMER SATISFACTION AFTER SALES & SERVICES OF MAHINDRA&MAHINDRA AT SRI GANESH AGRO TRACTORS, CHANNARAYAPATNA”. Need for the Study:- The need of the study is to analyze the customer satisfaction after sales & services and fill in the gaps if any which in turn can improve the service to the customer of Sri Ganesh Agro Tractors, Channarayapatna. Scope of the Study:- In this competitive world retaining the customers has become very important, hence it has become part and parcel of the business. Business which can adapt to quick changes and get access to improvised technology can survive in this tuff market conditions. This study will help us to understand customers, preference and their needs expected from the business owners. This study will not only help me as a student but it also assists Ganesh automobiles to improve their service standard. Objectives of the Study: - 1. To know the customer’s satisfaction level at Authorized Mahindra &Mahindra service centre in Hassan. District 2. To know the perception of customer’s regarding the charges/ rates offered by the service centre. 3. To know the reasons for decline in customer’s visit at Sri Ganesh Agro Tractors. 4. To know the suggestions from customer’s to improve the service center 6. . H R Institute of Higher Education, Hassan Page |2
  3. 3. After Sales & Services RESEARCH METHODOLOGY:- A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings, which are also dealt with and leads to a logical deduction towards the analysis and results. 1. Primary data:- a. Personal interview with dealers and user of tractors has been used as survey technique for collecting data. The dealers of different branches of tractor were also enquired about question depending on circumstances. The survey has been made by using primary data and secondary data. b. The primary sources consist of information collected from dealers of different branches and tractors owners and agriculturist. The secondary data has been collected from encyclopedias, survey of Indian agriculture, Technical journals and news paper reports. 2. Secondary data:- These are the sources contain data, which have been collected and compared for some other purpose. The secondary source consists of readily available components and already compiled statistical statement and reports whose data may be used for H R Institute of Higher Education, Hassan Page |3
  4. 4. After Sales & Services study. Secondary data have been collected from many sources. The major sources of secondary data are given below.  Reports/records  Websites  Organizations old data Determination of the sample plan and sample size Target population It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling Sample Size: This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors: •Project goals •How you plan to analyze your data H R Institute of Higher Education, Hassan Page |4
  5. 5. After Sales & Services •How variable your data are or are likely to be •How precisely you want to measure change or trend •The number of years over which you want to detect a trend •How many times a year you will sample each point •How much money and manpower you have I have targeted 100people in the age group above 21 years for the purpose of the research. The target population influences the sample size. The target population represents the Delhi regions. . The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section. Data collection Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. The firsthand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 100 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of Farmers, Businessmen, and Professionals etc. the required information was collected by directly interacting with these respondents. H R Institute of Higher Education, Hassan Page |5
  6. 6. After Sales & Services Limitations of the Study:-  Time constraint has prohibited from going deep into the subject.  The information obtained or the collection of data is limited.  The study is purely academic.  Due to time constraints the study is restrict to Channarayapatna only.  Only the customers of Sri Ganesh Agro Tractors were considered as respondents.  The survey was conducted in this urban sector of respondents thus it cannot be generalized.  The information provided by respondents could be biased H R Institute of Higher Education, Hassan Page |6
  7. 7. After Sales & Services 2A.1 INDUSTRY SCENARIO INTRODUCTION The tractor industry in India has developed over the years to become one of the largest tractor markets in the world. From just about 50,000 units in early eighties the size of tractor market in the country has grown up to over 200,000 units. Today industry comprises of 14 players, including 3 MNCs. The opportunities still are huge considering the low farm mechanization levels in the country, when compared to other developed economies across the world. Key concern for the industry is its dependence on agricultural income in hands of farmers and the state of monsoon. The key players are Sonalika, John Deer, Mahindra, New Holland etc. 2A.2 HISTORY OF THE TRACTOR:- The word tractor was derived from the combining parts of the word TRACTOR and MOTOR and was first noted in a patent issued in USA in 1890. A self profiled power unit used to pull 100 to carry and operate till age cultivation harvesting, machinery to provide power take of or other , power out let a drive stationary and down implements, machinery as distinguish from tractor to pro puller steam engine tractors. Tractor was first used during the 1870's this tractor’s called tractors engine were large four wheeled Machine driven by steam. They provided enough power to pall as money as 40 plough they were too awkward to be practical. The first tractors in the since of Powered traction vehicles, grew out of the stationary and portable Steam engine Operated on farms in 19 the century and used to hour plows by 1890. 2A.3 MAHINDRA & MAHINDRA TRACTOR HISTORY:- H R Institute of Higher Education, Hassan Page |7
  8. 8. After Sales & Services From army vehicles to farm tractors to major automobile manufacturing, Mahindra's relationship with American industry goes back quite a few years. American GI's who served in India during World War II recognize our parent company, Mahindra & Mahindra, which in l945 was selected to assemble the famous Willis Jeep. Following Indian independence in 1947, Mahindra & Mahindra charted a course of product expansion and globalization. The philosophy led to the company's entrance into the worldwide tractor. In 1962, M&M formed a joint venture with International Harvester to make tractors carrying the name Mahindra & Mahindra name-plate for the Indian market. Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M-a major auto maker- developed its first tractor, the B-275. This successor to International Harvester's incredibly popular B-414 is still the basis for some current Mahindra & Mahindra models. Today, Mahindra is the third largest tractor manufacturer in the world with sales of nearly 85,000 units annually in 10 countries. This places them ahead of John Deere & Kubota. In India, Mahindra has been the number one selling brand since 1983. H R Institute of Higher Education, Hassan Page |8
  9. 9. After Sales & Services 2A.4 TYPES OF TRACTORS:- Tractors are classified according to weather wheels or tracks which are used to provide traction. • Track laying Tractor: These tractors are used to obtain better adhesion or lower ground pressure then would be possible with an ordinary wheeled tractor. • Four Wheel drive tractors: These are able to work under any conditions since its engine is engaged to both the front & rear wheel. Those in most general use are of the wheel drive type with two large wheel driving wheels at the rear & two steering wheels at the front. The Tractor Industry in India dates back to 1961 when a madras based company pioneered the manufacture of farm equipment by establishing a tractor plant in collaboration with a multinational agricultural machinery manufacturer. Today agricultural tractors are manufactured by about 15 units in the organized sector with a H R Institute of Higher Education, Hassan Page |9
  10. 10. After Sales & Services total registered capacity of above 2 lakh. 2A.5 USES OF TRACTORS:- Following are the uses of tractor.  In the field of agriculture tractor have an important role to play in rising productivity.  Tractors are used in the field of transportation. The fertilizers can be carried to the field & the produce to the market with the help of tractors. It is also for the purpose of transportation goods from one place to another.  Through the use of tractor farm practices were revolutionized & agriculture crops were increased per hectare. Mechanized farming becomes possible through the use of tractors.  In stone crushers before the blasting of rocks drilling machines are used to drill the rocks with the help of tractors.  Not only has animal power been displaced & human effort reduced through the use of tractors. 2A.6 ROLE OF TRACTORS IN INDIAN AGRICULTURE:- India has always been heavily dependent on agriculture for its economic growth. It follows that mechanized farming would increase agriculture output in the given the huge trucks of land which cultivated are would assume that tractors are sold in a big way in our country. Indian agriculture is as old as civilization itself & the Indian farmer has the benefit of a vast past experience the yield of crops in India are very low when compared to even some of the south east when compared to even some of the south east Asian countries. Agriculture forms the backbone of the Indian economy & despite concerted industrialization in the last four decades; agriculture occupies a place of pride. Being the largest industry in India, it is the source of livelihood for over 70% of the national income. Its importance in industrial development in the supply of raw-materials to leading industries like jute, textile, sugar etc, is very high. Agriculture increase national income & it helps in industrial development, H R Institute of Higher Education, Hassan P a g e | 10
  11. 11. After Sales & Services agriculture helps for the promotion of international trade & the development of agriculture is essential for economic growth, the significance of agriculture in India arises also from the fact that the development in agriculture is an essential for the development of the national economics. Though the experience of Indian farmer the yields crops in India very low when compare to other countries. For this reasons are quite obviously monocropping & repeated use of land without rest is one problem is the efficient use of good fertilizers expect domestic fertilizers also primitive & traditional, besides the wooden plough, hoe, sickle & other old method of practicing agriculture no any mechanical or other devices are used. By mechanization of agriculture we mean the replacement of animal & human power by machinery & pouching done by tractors. Sowing & putting of fertilizers by the drill & reaping & thrashing by the combined harvester & so on. The tractors will so be used in transporting crops to markets. By using tractors, crops can be easily taken 2B.1 COMPANY PROFILE Mahindra and Mahindra incorporated in 1945, began operations, with assembly of jeeps imported in semi knocked down (SKD) condition form wills, USA Mahindra and Mahindra & Mahindra started manufacturing jeep in collaboration with wily overland corporation and American motor cooperation (now parts of the Chrysler group) in 1954 and LCVs in 1965. Tractor production started in 1965 in a joint venture company with technical collaboration of international harvester company Chicago, USA. This company was merged with M and M in 1977. M and M is originally a principal supplier to the government for defense and other departments. M and M has restructured its operations. H R Institute of Higher Education, Hassan P a g e | 11
  12. 12. After Sales & Services While the focus is an automotive and tractor divisions most of the other business including IT, Infrastructure and financial services have been hired off into new ventures. Mr. Anand Mahindra is a member of the class of 1977 Harvard College, Cambridge, mustache sets form where he graduated manger cum laude (high honors). In 1981 he secured on MBA from the Harvard business school in Boston after returning the India he joined Mahindra urine steel company ltd. In 1989 he was appointed president and deputy-managing director of MUSCO. In April 1997, he moved over to M and M as the deputy- managing director. In April 1997, he was appointed as the managing director by the board of M and M. Mr. Mahindra was also the co promoter and is the chairman of total Mahindra finance ltd. Mr. Mahindra writes frequently on business and general economic subject is leading business and Business magazines. 2B.2 Organization analysis:- Mission/Vision: Vision: Indians are second to none in the world. The founders of our nation and of our company passionately believed this. We will prove them right by believing in ourselves and by making M&M Ltd. known worldwide for the quality of its product and services. Mission: We don’t have a group-wide mission statement. Our core purpose is what makes all of us want to get up and come to work in the morning”. 2B.3 Goals and Objectives:-  To provide highly technological innovative product  By 2015 it wants to enter almost all continents of world  Plan to open 30 outlet pan in India by next 4 year  To make the production system even more efficient  To usher prosperity; for its customers, dealers, employees, society and all other stakeholders.  To be the market leader in all power segments of tractors H R Institute of Higher Education, Hassan P a g e | 12
  13. 13. After Sales & Services 2B.4 SWOT Analysis:- Strengths:  Over the years the company has emerged as one of the top players in the world in terms of number of tractors sold. This gives a clear indication that the company's market share is one of its biggest strengths.  The company's ability to introduce new products in the market and to generate sales from those new products is a major strength. The reason being that this is very essential for any company, for its survival in the long run.  Brand name and brand image.  The company has established its brand name in other countries of the world as well. It has a wide market spreading over the five continents. This is evident from the 40% market share that it holds in the 30-40 HP tractors market in the US. Weaknesses:  The company is highly dependent on the rural sector, and the rural sector in turn is highly dependent on the monsoons. As a result, if there happen to be bad monsoons (less of rains) for two consecutive years it could have an adverse impact on the demand of tractors for the company.  People are not fully aware about the brand as most of them are from the rural background. Opportunities:  The government has been trying to strengthen the exports of agricultural products. As a result, the quality of agricultural products necessarily has to be very high. For this, they need better rural and agricultural infrastructure. This might result in an increase in demand for tractors.  In India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area, which is much below the world average of 19 tractors for the same. Thus there is scope for the demand to increase. Threats: H R Institute of Higher Education, Hassan P a g e | 13
  14. 14. After Sales & Services  The company has a history of having invested in unrelated diversifications such as telecom, holiday and resort inns, financial services, etc. which it has hived off as subsidiaries from time to time when these turned unmanageable. This is a cause for concern as such diversifications could divert the company's attention from its core business. It is a dangerous tendency as it leads to destruction of shareholders value.  The entry of foreign players in the tractors segment could pose a threat to the company as these foreign players are technically more competitive than Mahindra & Mahindra. 2B.5 MAHINDRA AND MAHINDRA LTD’S BOARD OF DIRECTOR’S:- Board of director's as on 30th may, 2000 Keshub, Mahindra chairman R.K. Pitamber Deepak, S.Parekh, S.K Batanagar nadir, B.Godrej, M.M. Murugappan, Sanjivkapoor, nominee of unit trust of Idia Narayanan VaghulLewis , W.K Booth Philip, G.spender alternate director to lewis W.K Booth, B.R.Gupta-nominee of life insurance corporation of India A.S.Ganguly, R.K. KulkarniSanjiv, A Kerkar-nominee K.J Davasia Bharat Doshi Alan E Darante, A.K Nanda secretary A.K Nanda. Mahindra and Mahindra’s register office is in Gateway building, Apollabunder, Mumbai-400001, Plant locations in Mahindra and Mahindra ltd. All plants are located in Mahindra, Mumbai (1965), has facilities level, commander and armada range of vehicles and all tractors and spare parts manufactured on Nasik Plant. M and M has tractor manufacturing plants at Mumbai and Nagour in Maharashtra State where a wide range of tractors are produced. M and M’s tractors manufacturing unit at Kandiv is the single urges tractors manufacturing unit in the world it consist of modern machine shops ascertainable line and engine manufacturing facilities. M and M is one of the top four manufacturing of tractor's in the world value termsthe plant in Nagpur. Maharashtra also produces a wide area of agricultural implements to soot every sole type and from operation and O.E components. The M and M tractors division to date as produce over 500000 tractors over 5000 of which has been exported to USA, Africa ,Europe, Srilanka, Bangladesh, Vietnam and other countries. Its marketing network spans the Entire globe with representation in most contents around the world. M and M has widest range of tractors among Indian companies. H R Institute of Higher Education, Hassan P a g e | 14
  15. 15. After Sales & Services Different tractors models cover disparate market segment form 25 HP to 50 HP tractors for more than a decade. M and M tractors have been market leaders. But M and M is not content with being just a market leader research engines at machines developed a direct in injection tractors engine this gave for Greater fuel efficiency than even before and provided the advantage of an instant could start recently. M and M has “Increased warranty to India” on all its models to 2000 hours of usage or 2 years of service form 1000 hours or 1 year earlier strong emphasis on from continuous product innovation and improvement has helps to sustain our market leadership in the dynamic Indian tractor market. Strong manufacturing facilities backed by a strong R&D capability and a dynamic and customer oriented marketing function. M&M has secured the top position in the "Domestic Tractor Market". When India celebrates 50 years of independence and the world moves on to the next century M&M is eager to export new markets and renew our commitment to the agricultural community. Mahindra & Mahindra Ltd. is one of the major automotive companies of India. They initially had collaboration with Willys Overland Corporation to import and assemble jeeps in India. They are the market leaders in the utility vehicles segment. They are also a major player in the tractor manufacturing segment as well. They are the only sole Indian company to be a part of the top five tractor manufacturing companies in the world. 2B.6 The Indian Tractor Market: The Indian tractor industry, dominated since time immemorial by a few known brands, is in the process of a change. A look at the average growth rate recorded by the tractor industry point towards a general slowdown. The growth rate for the eight month period April- November 1996 has dropped to 13% from 16% recoded during the previous year. Among the 3 Indian majors, Mahindra & Mahindra Tractor &Farm Equipment (TAFE) & Punjab tractors, only M&M has recorded a marginal drop in market share. Overall all of them have witnessed increased sales in terms of volume. As for the others H R Institute of Higher Education, Hassan P a g e | 15
  16. 16. After Sales & Services which include the links of Eicher, HMT, ESCORTS etc., there has been steady erosion in the market share. A begin state policy, which provides the buyer subsidies & soft loans has seen the tractors become a popular substitute for the LCV as utility vehicle in rural areas. Due to the general slowdown in the growth rate of the Economy, the industry expects to slow down. The growth rate in tractor declined from 18.5% in 1994-95 to 17.3% in 1995-96 & 1996-97 (April-Nov). But there is one company which has defined this entire ‘slowdown’ pattern & is growing at a steady pace. The co. is Punjab Tractors Ltd... The market share of Punjab tractors has increased from 11% to 14.9% in 1996-97 (April- December). It overtook Either in 93-94& Farm Equipment (TAPE). The future of the tractor industry will see a shakeout of sorts. The small players will either have to survive. According to experts, ten years from now, the market will stagnate. If at all there is a market that will grow, it will be one for replacements. Till then Tractor players will continue to trudge along slowly maintaining a 5-6 percent growth rate. Hence the performance of the companies, from the automobile industry that have featured in this year's top50 reveals that though the industry is in the grip of recession players with very good fundamentals will always continue to reward the investors. The Indian tractor industry sold approximately 2.2 lakh tractors between, April 1996&March 1997. On an average the tractor market gas grown by 6% to 7% each year since 1993. When the industry was of around 1.4 lakh tractors in all these years some of the companies had limited production capacities & the customer had to wait for most popular models. These problems were more acute in the season & often aggravated by the short supply of premium models. However, since October 1996, a distinct change has been observed in the tractor market. All tractors models, including the so called premium products, are readily available in the show room. The main reason for this phenomenon is that all tractor manufacturers have been gradually increasing their production volume in the last few years and presently the total production capacity of all the tractor manufacturers has reached approximately 2.7 lakh units. This will ease the supply position of tractors and in times to come the customer will not have any waiting period for a tractor. H R Institute of Higher Education, Hassan P a g e | 16
  17. 17. After Sales & Services 2B.7 Domestic Operations The Mahindra Group’s Farm Equipment Sector is the largest producer of agricultural tractors in India. It has enjoyed an unparalleled market leadership in the domestic market for the last 23 years. With a 30% market share, the Bhoomiputra, Sarpanch and Arjun brands of tractors make the Group’s Farm Equipment Sector present in all the major segments in India. Mahindra & Mahindra recently consolidated it position as the leader of the Indian tractor industry when it acquired 43% stake in Punjab Tractors, the owner of the leading Swaraj brand of tractors. It has a large customer base of 12, 00,000 satisfied customers and the deepest distribution reach. The Sector has four manufacturing facilities in India, located in Mumbai and Nagpur in Maharashtra, Rudrapur in Uttaranchal and Jaipur in Rajasthan. The Farm Equipment Sector has always been a process driven organization with a strong focus on its quality systems. The TQM movement in the Sector has brought accolades like the most coveted Deming Application Prize, making it the first tractor company in the world to win recognition of this stature. 2B.8 Overseas Operations With headquarters at Tomball (Texas), Mahindra USA is a wholly owned subsidiary of Mahindra & Mahindra. Over the years, Mahindra USA has grown by leaps and bounds and has reinforced its position in the Compact and Utility segment. It works hand in hand with a network of hundreds of leading tractor dealers throughout the country to provide its American customers complete product support and quality After Sales Service. The Company has also enhanced its capabilities with another assembly plant and distribution centre in Calhoun (Georgia) and Red bluff (California). Mahindra Australia, based in Brisbane, is a branch of the global farm equipment manufacturer Mahindra & Mahindra. Mahindra Australia currently offers a complete line of 2WD and 4WD Compact and Utility models with an option to have performance matched attachments like Loaders and Mowers. Mahindra China Tractors, a joint venture between the Jiangling Motors Company Group and Mahindra & Mahindra, started operations in July 2005. It will see Mahindra & H R Institute of Higher Education, Hassan P a g e | 17
  18. 18. After Sales & Services Mahindra further expanding the product range and developing more tractors for China as well as other overseas markets. 2B.9 Mahindra Tractors is one of India’s most innovative companies Mahindra & Mahindra’s Farm Equipment Sector (FES) has featured in the top 10 list of most innovative Indian companies compiled by the Wall Street Journal as part of its survey to determine Asia’s 200 most-admired and innovative companies. The Asia 200 surveys is the ultimate performance review of Asia’s leading companies. The survey takes into account key criteria including long-term vision, innovation in responding to customer needs, quality of products and services, corporate and financial reputation. Innovation is the cornerstone of business at Mahindra Tractors which has pioneered several innovative products and services in the recent past. The Mahindra Shaan is one such product resulting from this culture of innovation. India’s first multi- utility tractor, the Shaan helps in farming activities and facilitates transportation as well. It has been designed keeping in mind the needs of the young and progressive farmer – increased income and pride of ownership resulting from style, comfort and modernity. The Shaan has led innovation in the tractor market and has initiated the transition from a ‘product feature - price’ led business approach to a ‘value-led innovation’ business approach. The product has positively impacted the lives of several customers across the country, facilitating unique uses, such as mobile flour mills, brick kiln operations, vegetable farming and transportation of farm produce, water tanker haulage, transportation of goods and people. In early 2007, Mahindra Tractors launched India’s first 5% bio-diesel tractor which is the outcome of the sector’s relentless focus on R&D and its commitment to a cleaner environment. The utilization of renewable Biodiesel as a fuel for transportation vehicles is one of the significant technologies being developed for automotive application. The Bio-Diesel programmed is one of Mahindra’s investments in India’s sustainable economic development. FES has been the market leader in the Indian tractor Industry for the last 25 years and is H R Institute of Higher Education, Hassan P a g e | 18
  19. 19. After Sales & Services historically known for the superior quality of its products and focus on customer centricity. It is also the only tractor company in the world to win both the Deming Application Prize and the Japan Quality Medal, two of the highest quality accolades which can be won by any company. 2B.10 MAHINDRA & MAHINDRA TRACTOR SALES RISE BY 16%: Mahindra & Mahindra announced that its tractor sales for the month of August 2008 stood at 7,000 units as compared to 6011 units for the same period last year, recording a growth of16.45%. Exports: - They exports during August 2008 were 597 units as against 561 units for the same period last year, recording a growth of 6.42%. Total sales (domestic and exports) for the month were 7,597 units, as compared to 6,572 units for the same period last year, recording growth of 15.59%. Cumulatively, during this fiscal, Mahindra & Mahindra tractors sales in the domestic market were 41,455 units as compared to 37,611 units for the April- August quarter last year, recording a growth of 10.22%. Shares of the company declined Rs 5.2, or 0.9%, to settle at Rs 572.85. The total volume of shares traded was 15,411 at the BSE. 2B.11 M&M IN INDIA:- MAHINDRA & MAHINDRA LTD. was established in 1962 at Mumbai. The company is India's first large scale project based on totally indigenously & totally indigenous design, know how & technology was promoted by the International Harvester company of U.K.At present the name of owner of the company is Anand G Mahindra. The Mahindra Factory is located at Akurli Road. Mumbai & their implement division are at Nagpur. The factory is among the first to be set up in this Industrial town. H R Institute of Higher Education, Hassan P a g e | 19
  20. 20. After Sales & Services Its main marketing Department is at Worli Road, Mumbai. 2B.12 GROWTH OF THE ORGANIZATION:- Mahindra & Mahindra Ltd... Consist of 3 divisions. 1. Mahindra tractor Division. 2. Mahindra Jeep Division. 3. LCV Division FORD-ESCORT- MAHINDRA Collaboration. Mahindra tractor Division started with annual capacity of 500 tractors & with capacity of Rs 400 crores. It went into commercial production in the year 1962 with 35 HP ranges of tractor. At present the annual capacity of Mahindra Tractor division is 8000 tractors & with capacity of Rs 2000 crores. The company is managed by seven Boards of Directors with Secretary, Deputy Manager, and Chairman. The day to day operations are managed by the Managing directors. Having Mahindra & Mahindra established in the Indian Market. Mahindra Tractor Division made a determined starts in 1995-96 year to establish itself in the international market over the years, a large number of Mahindra tractors & implements are operating in many countries like Australia, Pakistan, Brazil, Srilanka, and Alzeria. It would be very glad that the pure Indian company with Indian technology export tractors & the implements to other countries or foreign countries. Most of the Mahindra & Mahindra Tractors are sold Foreign countries are 30 HP range of Model. But in Indian market 40 HP ranges of tractors is more demand. Mahindra has 728 dealers in the entire country & it has 30 dealers in Karnataka. 2B.13 Dynamic growth:- During the 35 years of its existence, Mahindra & Mahindra tractors division has not only expanded its tractors manufacturing capacity of tractors per annum but also more product in to manufacturing range Mahindra has emerged as a major industrial complex in India. The Mahindra is only one pure Indian company, without any alliance of collaboration with any multinational countries which manufactured the machine tools. H R Institute of Higher Education, Hassan P a g e | 20
  21. 21. After Sales & Services Mahindra name is synonymous with the quality machine tools in the major industrial concerns in India. Mahindra was not only manufactured tractors but also manufactured harvesters, combines, forklifts, trucks, agriculture implements and automobile castings. High technology, sophisticated tool room equipment and modern R&D facilities, including computer aided designs and computerized testing machines, blending with decade of experience of Indian conditions, has resulted in technology relevant to Indian conditions. The export performance, Mahindra has always been conscious that the quality if its products lie in it acceptable in the world market, entry in export market means, it has to know what sells abroad and it has to design its product according to network in India, which will serve as a major source of competitive advantage. The Indian tractor market is anxiously awaiting the arrival of global tractor giants like John Deere, New- Holland, Same, Steyretc and the existing players have also enhanced their product volumes, models range and quality. In this highly competitive market- driven scenario, the complete purchase process shall focus around the customer needs. At these crucial juncture, there shall be used to plan a series of multiple activities to gear up all over business processes to face the future market where in we envisage that “the customer will be king” and that “customer satisfaction” shall be the prime consideration for all over systems Mahindra & Mahindra Tractors, also known as Mahindra & Mahindra Limited - an Indian automobile company, is one of the largest tractor manufacturers in the world. Mahindra entered the U.S. tractor market in 1994, and currently has two assembly and distribution centers in the United States. Mahindra was used at the end of World War II to assemble the Willy’s Jeep for American soldiers in India. Mahindra then later entered the world wide tractor market in 1947, after India’s independence. Mahindra actually developed its first tractor through the help of International Harvester through a joint venture dating back to 1963. Some of the Mahindra tractor models are still based upon the IH B-414 successor. Mahindra has also done a joint venture with Ford Motor Company in 1995. H R Institute of Higher Education, Hassan P a g e | 21
  22. 22. After Sales & Services M&M had posted excellent results for the year ended 31st March 2004. Gross sales from operations at Rs 5,914 crore was up by 31.5%, while profit after tax (PAT) at Rs 348.5 crore was up by 139%, from that posted in 2002-03. A total of 41,135 tractors were sold in July-March 2008-2009 as compared to 37,096 units in the same period of last fiscal year. Sale of tractors at 21,247 units and 19,888 units as compared to 18,342 and 18,754 units in July-March 2007-2008. 2B.14 M&M Ltd. Tractors record 19% growth in Sales in June 2009 Mumbai Tuesday July 1, 2009. Mahindra & Mahindra’s Farm Equipment Sector (FES), a part of the U.S. $6.7 billion Mahindra Group, significantly consolidated its leadership position in the tractor industry in June 2008. For the month of June 2008, domestic sales of tractors of Mahindra & Mahindra Ltd. were 11054 nos., a growth of 16% and exports during the month were 954 nos., a growth of 69% over the corresponding month last year. Total sales for the month were 12008 nos., a growth of 19% over the corresponding month last year. M&M is the third largest tractor company in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of around 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Mahindra & Mahindra grew from being a maker of army vehicles to a major automobile and tractor manufacturer. It has acquired plants in Chinaand the United Kingdomand has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA. World-class products with high quality, reliability, durability and multiple features. H R Institute of Higher Education, Hassan P a g e | 22
  23. 23. After Sales & Services Not only in India one of the largest tractors, markets, it is also one of the few growing markets in the world that is expected to saturate only by the year 2005, by when it shall have a stable demand of around 3.5 lakh units per annum. In the near future the customer will have a multiple variety of models to choose from, not only in terms of quality, technology, reliability &overall economics. In this scenario the role of a dealership for delivering total customer satisfaction through all its thoughts, words and deeds becomes the single highest priority objective in the times to come. 2B.15 Distribution Network:- The company has not only contributed by supplying a large number of tractors to the Indian farmers but has also ensured proper backup services to help them operate. Mahindra has a large network of sales, service, first aid centers &space parts dealers spread throughout the length & a breadth of the country. Mahindra has 728 dealers in the entire country. It has main dealers in Karnataka. It is because of these well spread out facilities. That the ensures minimum downing time of the tractors. The dealership have well equipped workshops having special tools and equipment, field service motor- cycles to ensure prompt service is rendered at the door steps of the farmer. The demands for tractors in Indian market are as below. Models Percentage of Demand. 475-DI 40 275-DI 20 B-275-DI 30 OTHERS 10 TOTAL 100 The above table shows in the below diagram. H R Institute of Higher Education, Hassan P a g e | 23
  24. 24. After Sales & Services 2B.16 MAHINDRA USA, INC;- In 2002, Mahindra USA completed a major expansion of its Tomball (Houston Area), Texas headquarters. They tripled the size of the parts warehouse and the production assembly lines. In 2003, a second assembly and distribution center was established in Calhoun, Georgia. In 2004, a separate, much larger parts warehouse was put into operation outside of Houston, Texas, to keep up with the huge growth of Mahindra tractor sales in the U.S.A...Final assembly takes place here in the U.S.A. where we conduct a 51-point pre- delivery inspection, including dynamometer and road test. 2B.17 COMPARISON WITH COMPLETIVE COMPANIES: H R Institute of Higher Education, Hassan P a g e | 24
  25. 25. After Sales & Services 1. Comparison of stock market performance of different brands:- COMPANY NAME PRICE N/P CASH PROFIT Eicher 16.5 83.3 1183.4 M&M 91 183.04 236.78 Ford 117.5 180.75 22.2 Escort 245.07 541.33 157.77 The above comparison shows in the following diagram. COMPARISON OF INSTALLED CAPACITY AND ITS UTILIZATION:- H R Institute of Higher Education, Hassan P a g e | 25
  26. 26. After Sales & Services Installed Capacity COMPANY Capacity Production Utilization NAMES 2008 2009 2008 2009 2008 2009 1800 1589 Eicher 18000 0 16913 9 94 88 2800 3488 M&M 28000 0 37786 6 162 223 1212 Ford 8500 8500 14482 3 170 142 2300 1306 Escort 23000 0 18437 3 66 47 The above comparison shows in the following diagram. H R Institute of Higher Education, Hassan P a g e | 26
  27. 27. After Sales & Services 2B.18 Major Milestones:- 1945 :  October 2, Mahindra & Mohammed formed. 1948:  The Company was renamed Mahindra & Mahindra Limited (M & M)  Steel Trading business was started in association with suppliers in U.K. 1948:  Business connections in USA through Mahindra Wallace. 1949:  Wallace Steel trading on behalf of European suppliers.  Jeep Assembly commenced. 1953:  Otis Elevator Co. (India) established. 1954:  Technical & Financial Collaboration with Willys Overland Corporation. 1957:  Mahindra Owen formed - a JV with Rubery Owen & Co. Ltd., UK. 1962:  Mahindra Ugine Steel Company (MUSCO) formed - a JV with Ugine Kuhlmann, France. 1963:  International Tractor Co. of India (ITCI) formed - a JV with International Harvester Co., USA. 1965:  Vickers Sperry of India Ltd. a JV with Sperry Rand Corporation, USA.  Manufacture of Light Commercial Vehicles commenced. 1970: H R Institute of Higher Education, Hassan P a g e | 27
  28. 28. After Sales & Services  Mahindra Engineering & Chemical Products Ltd.(MECP) commenced operations. 1971:  International Harvester collaboration ended. 1975:  Switch over to diesel vehicles in-house development. 1977:  ITCI merges with M&M, to become its Tractor Division. 1979:  License from Automobiles Peugeot, France for manufacture of XDP 4.90 Diesel Engines. 1982:  License from KIA for manufacture of 4 Speed Transmissions.  "Mahindra" brand of tractors born.  Siro Plats formed. 1983:  M&M becomes market leader in Indian Tractor Market. (Position retained ever since) 1984:  Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and market utility vehicles in Europe. 1986:  Mahindra British Telecom (MBT) formed - a JV with British Telecommunications plc (BT), UK. 1987:  Acquired International Instruments Ltd. 1989:  Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW H R Institute of Higher Education, Hassan P a g e | 28
  29. 29. After Sales & Services 1991:  Introduction of Commander Series. 1992:  Triton Overwater Transport Agency Ltd., formed.  Implementation of the Service Center project at Kanhe.  Merged diverse activities of Steel, Machine Tools, and Graphics into Intergrade Division. 1993:  Incorporation of MBT International Inc., USA, a wholly owned subsidiary of MBT The Company’s maiden international offering – the US$ 75m GDR issue. 1994:  Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) formed  Mahindra USA Inc., formed, for distribution of Tractors in the USA  EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company Ltd. A/S, Denmark 1999:  The Company acquired major stake in Gujarat Tractors. 2000:  The Company unveils new logo.  Mahindra Auto Specialties Ltd. a new 100% subsidiary is formed. M&M sets up its first satellite tractor plant at Rudrapur.  The Company launches New Age Tractor, the Mahindra Arjun 605 DI (60 HP tractor). 2003:  M&M opens a second tractor assembly plant in USA.  M&M Tractors awarded the prestigious Deming Prize for excellence in Quality -  The first tractor company in the world to receive the award. H R Institute of Higher Education, Hassan P a g e | 29
  30. 30. After Sales & Services  M&M launches India's first Turbo tractor - Mahindra Sarpanch 595 DI Super Turbo.  Scorpio wins National Award for R&D. 2004:  Launched the Mahindra World Tractor - a 75 HP tractor in the overseas market. Formed a new Sector, Mahindra Systems and Automotive Technologies (MSAT), to focus on developing components as well as offering engineering services.  M&M becomes the first Indian company to achieve sales of one million tractors. 2005:  Acquired 51% stake in SAR Transmission Private Limited, a company engaged in manufacture of gears and transmission shafts.  M&M Farm Equipment Sector launch operations in Australia. M&M becomes the first Indian auto manufacturer to launch the Common Rail Diesel Engine (CRDe), offering it on the Scorpio. Acquired 80% stake in the JV with Jiangling Motors i.e. in Mahindra (China) Tractor Company. • The first tractor from the JV, Mahindra (China) Tractor Co. Limited, rolled out on 2 July 2005 H R Institute of Higher Education, Hassan P a g e | 30
  31. 31. After Sales & Services 2C.1 FIRM PROFILE: BRIEF HISTORY OF THE DEALER:- Sri Ganesh Agro Tractors is started in the year 2009 and registered under partnership Act of 1932. Mr. Sathish Gowda, Mr. Darmegowda are the partners of Sri Ganesh Agro Tractors. The showroom of M&M tractors is situated in B.M. Road, Opp: Govt. First Grade College, Channarayapatna-573116. The showroom sports a uniform look and the service station is situated behind the show room. The service station area however upgraded as per company specification. Mr. Sathish Gowda and Mr. Darmegowda are very good dealers in Hassan area. They are also having a skill of marketing. Mr.Naveen S. Kaggere the manager of the company, who is looking after all sales and services of the firm. He has very good tractor mechanic in Hassan area. He is also having a skill of marketing of tractors. In the beginning the firm initial capital was 62 lakhs and sale of the tractor is 15 per month. The firm started to deal with Mahindra tractors & implements and spare parts of the Mahindra tractors in the range 25 hp,30hp,33hp 36hp,40 hp.50 hp ,with regard to H R Institute of Higher Education, Hassan P a g e | 31
  32. 32. After Sales & Services 225-DI,265-DI,365-DI,275-DI,B-275, 475-DI,585-DI respectively. There is a large demand for the 295,275,475,575 tractors as other range of tractors. 2C.2 INFRASTRUCTURE FACILITIES:-  Land and building: The firm is having its own building. The office covers an area of 4125.0 square feet, East- west 75"feet, North-south 55 feet.  Power: The electric power requirement of the firm is of 150 to 250 unit’s pm. The electric power consumer by the firm’s showroom is about 150 units and service attain like water washing of vehicles etc., take the power consumption of 100 to 150 units.  Machinery: The firm is well equipped machines and tolls are used in services facilities to vehicle the value of tool is the firm more than Rs. 1, 50,000.  Recruited staff of the firm:  General  Manager.  Sales manager.  Workshop manager.  Spares manager.  Accounts staff.  Man power: The firm has sufficient staff. There are 22 members working in the showroom. There are 16 foremen working in the showroom.  Advertisement: Advertisement is the main aims for create demand for the product in the mind of the customer and improve the competitive strength. The dealer is advertisement its vehicles through various media such as local news paper and states news papers, magazines etc. H R Institute of Higher Education, Hassan P a g e | 32
  33. 33. After Sales & Services 2C.3 ORGANISATION STRUCTURE:- Organization Structure of Sri Ganesh Agro Tractors with Special Regard to Sales Proprietor Manager Supervisor Sales Executive Office In charge Sr. Mechanic Clerk Spare parts Jr. Mechanic Accountant Helper Helper H R Institute of Higher Education, Hassan P a g e | 33
  34. 34. After Sales & Services The service station is situated at the back side of the show room so that they can provide timely repairs, and other service like wash services, wheel alignment, oil change etc to the customers within time. They also provide after sales services like free services up to one year of purchase and demonstrations...etc. The place of purchase and place of service are situated at the same place and it would be economical to the customers as well as the service providers. 2C.4 DEMAND FOR THE PRODUCT: Generally the market is a medium to secure certain volume of sales. It is mainly interested in the demand side of the market. Market consists of individuals and group of people institution and corporate bodies, their needs, their resources, their buying habits and their preferences. The success of the marketing is also depends on the ability to H R Institute of Higher Education, Hassan P a g e | 34
  35. 35. After Sales & Services forecast the strength and character of demand as it is the basis for allocation of resources in business. There are three variable factors that relate to tractors in market demand, that is demographic variables (population pattern) to ascertain size of demand, effective demand (purchasing power) to ascertain potential demand life style pattern of the customers. 2C.5 COMPANY DEMAND:- Company demand is volume of sales expected under given environmental conditions for a specific time. It is function of firm strategies marketing effort and specific the amount of sales turnover which would be realized by a company under different levels of company’s selling efforts. It is the market share of a company. Mahindra tractors are one of the main products of Mahindra and Mahindra ltd., this company is having collaboration with many foreign companies. But now it is indigenous in manufacturing Mahindra. Following points affect the increased demand for Mahindra tractors:- 1. Manufacturing tractors by incorporating the best technology available. 2. Superior quality of raw material used in production. 3. Tractors having good specification when compared to other tractors. 4. Good service given by the agency to customers after sale tractors. 2C.6 MARKETING MIX:- Marketing of Mahindra tractors by Sri Ganesh Agro Tractors:- Sri Ganesh Agro Tractors are one of the leading dealers of M Mahindra tractors. The firm has commenced marketing of Mahindra tractors since. The firm has to face many difficulties in the beginning to create primary demand for tractors. Today it is very popular through the salesman and advertisement. The salesman travels through the several villages in Hassan district. Modern Marketing refers to all those activities involved identifying the present and potential requirement of the consumers for goods and services and in securing the distribution of those goods and services form the centers of production to place where these are wanted and at a time they are wanted. Therefore modern marketing is failed to H R Institute of Higher Education, Hassan P a g e | 35
  36. 36. After Sales & Services be consumer oriented and it begins before production and also succeeds production. 2C.7 PRODUCTS: Ranges of tractors are,  Mahindra -295-DI of 35HP.  Mahindra- 275-DI of 36 HP.  Mahindra-475-DI of 40 HP.  Mahindra -575-DI of 45 HP. 2C.8 PRODUCTS PROFILE MAHINDRA SARPANCH 265DI: 30 HP ENGINE: Type: MDI 1895 Horse Power: 30 HP No. of Cylinders: 3 Displacement: 1892 CC Rated RPM: 2300 RPM Air Cleaner: 3 stage oil bath with Pre-cleaner Cooling System: Water cooled TRANSMISSION: Type: Sliding Mesh No. of Gears: 8F + 2R CAPACITY: Fuel Tank: 55 Ltrs. Engine oil sump: 6 Ltrs. Cooling System: 7.95 Ltrs. Transmission case: 23 Ltrs. H R Institute of Higher Education, Hassan P a g e | 36
  37. 37. After Sales & Services Hydraulics: 11.5 Ltrs. DIMENSION: Max. Length: 3200 M.M Max. Height: 2195 M.M Wheel Base: 1836 M.M Weight: 1820 K.G. (With full of Fuel, Oil and Water) MAHINDRA SARPANCH 575DI: 45 HP ENGINE: Type: MDI 2500 Horse Power: 45 HP No. of Cylinders: 4 Displacement: 2523 CC Rated RPM: 2300 RPM Air Cleaner: 3 stage oil bath with Pre-cleaner Cooling System: Water cooled TRANSMISSION: Type: Partial Constant Mesh No. of Gears: 8F + 2R CAPACITY: Fuel Tank: 55 Ltrs. Engine oil sump: 7.8 Ltrs. Cooling System: 7.95 Ltrs. Transmission case: 23 Ltrs. Hydraulics: 11.5 Ltrs. DIMENSION: Max. Length: 3190 M.M H R Institute of Higher Education, Hassan P a g e | 37
  38. 38. After Sales & Services Max. Height: 2195 M.M Wheel Base: 1910 M.M Weight: 1860 K.G. (With full of Fuel, Oil and Water) MAHINDRA BHOOMIPUTHRA 265 DI ENGINE: Type: MDI 1895 Horse Power: 30 HP No. of Cylinders: 3 Displacement: 1892 CC Rated RPM: 2300 RPM Air Cleaner: 3 stage oil bath with Pre-cleaner Cooling System: Water cooled TRANSMISSION: Type: Sliding Mesh Max. Speed- Front: 29.25 KMPH Max. Speed- Back: 12.2 KMPH CAPACITY: Fuel Tank: 45 Ltrs. H R Institute of Higher Education, Hassan P a g e | 38
  39. 39. After Sales & Services HYDRAULICS: Max. Weight Carried: 1000 KG Lower Link: External Check Chen with Cat II Steering: Mechanical MAHINDRA BHOOMIPUTHRA 475 DI ENGINE: Type: MDI 2500 Horse Power: 42 HP No. of Cylinders: 4 Displacement: 2523 CC Rated RPM: 2300 RPM Air Cleaner: 3 stage oil bath with Pre-cleaner Cooling System: Water cooled TRANSMISSION: Type: Sliding Mesh Max. Speed- Front: 30.48 KMPH Max. Speed- Back: 12.72 KMPH CAPACITY: Fuel Tank: 45 Ltrs. H R Institute of Higher Education, Hassan P a g e | 39
  40. 40. After Sales & Services HYDRAULICS: Max. Weight Carried: 1000 KG Lower Link: External Check Chen with Cat II Steering: Mechanical MAHINDRA SARPANCH 595 DI SUPER TURBO: 52 HP ENGINE: Type: MDI 3000 TC Horse Power: 52 HP No. of Cylinders: 4 Displacement: 2523 CC Rated RPM: 2100 RPM Air Cleaner: Dry air cleaner with Pre-cleaner Cooling System: Water cooled TRANSMISSION: Type: Concentrate Mesh No. of Gears: 8F + 2R CAPACITY: Fuel Tank: 55 Ltrs. H R Institute of Higher Education, Hassan P a g e | 40
  41. 41. After Sales & Services Engine oil sump: 9.4 Ltrs. Cooling System: 7.95 Ltrs. Transmission case: 25 Ltrs. Hydraulics: 11.5 Ltrs. DIMENSION: Max. Length: 3650 M.M Max. Height: 2180 M.M Wheel Base: 1970 M.M Weight: 2160 K.G. (With full of Fuel, Oil and Water) MAHINDRA ARJUN 555 ENGINE: Model: NE 452 Horse Power: 52 HP No. of Cylinders: 4 Displacement: 3054 CC Rated RPM: 2100 RPM Air Cleaner: Dry air cleaner with Clog Indicator TRANSMISSION: Type: Full constant mesh with Neutral safety switch No. of Gears: 8F + 2R CAPACITY: Fuel Tank: 65 Ltrs. Max. Weight carried: 1800 KG H R Institute of Higher Education, Hassan P a g e | 41
  42. 42. After Sales & Services Lower link: CAT II size DIMENSION: Max. Length: 3480 M.M Max. Width: 1940 M.M Wheel Base: 2120 M.M H R Institute of Higher Education, Hassan P a g e | 42
  43. 43. After Sales & Services 2C.9 PRICE LIST OF TRACTORS:- Total(R SI No Model HP s) 1 265DIBP 30 413996 2 265DI NST 30 424301 3 275DI BP 39 454489 4 275DI NST 39 467159 5 295DI TURBO 39 460889 6 475DI BP 42 475153 7 475DI NST 42 492049 8 475DI NST OIB 42 497559 9 575DI BP 45 519819 10 575DI NST 45 544111 11 575DI NST OIB 45 549620 12 555 ARJUN 52 591790 13 595 DI TURBO 52 562943 14 665 ARJUN 60 645547 H R Institute of Higher Education, Hassan P a g e | 43
  44. 44. After Sales & Services 2C.10 TRACTOR SPARES PARTS:- There are so many parts of tractors, they are;-  Intake manifold winter related parts.  Oil pump and oil pan.  Oil fitter and related parts.  Manifold as export system.  Crank shaft fly wheel and related parts.  Dual range and speed transmission gear.  Powers take of an assembly.  Clutch control.  Clutch assembly.  Radio and related parts.  Water pumps parts.  Fuel system  Injection assembly.  Air cleaner assembly.  Throttle controls.  Fuel Injection pump.  Injection pumps governor.  Fuel filters assembly.  8-Speed transmission gearshift leaver and related parts.  Hydraulic lift cover.  Hydraulic cylinder.  Hydraulic shaft. H R Institute of Higher Education, Hassan P a g e | 44
  45. 45. After Sales & Services  Hydraulic system  Hydraulic linkage and related parts.  Hydraulic pump assembly.  Flow control value and related parts.  Center housing and related parts.  Differential locks linkage parts.  Rare and differential related parts.  Steering gear assembly.  Electrical system of R.H and L.H.  Gear right and wringing. Battery and Battery support.  Storing motor drive and relay assembly.  Deluxe seal assembly.  Front wheel assembly.  Standard rear wheels.  Break and break controller.  Front oxlestreeing and related parts. H R Institute of Higher Education, Hassan P a g e | 45
  46. 46. After Sales & Services Literature review 3 Customer Satisfaction After Sales & Service:- Customer satisfaction is one of the main objectives of any organization. Every organization tries to know the customer satisfaction about their products. So a study on customer satisfaction helps the organization as well as me to gain a vast knowledge over the real world tastes and preferences of customer Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer’s expectations. In general satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. As this definition makes clear, satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations, the customer is H R Institute of Higher Education, Hassan P a g e | 46
  47. 47. After Sales & Services dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with the brand, not just a rational preference. The result is high customer loyalty. Xerox’s senior management believes that a very satisfied or delighted customer is worth 10 times as much to the company as a satisfied customer. A very satisfied customer is likely to stay with Xerox many more years and buy more than a satisfied customer will. How do buyers form their expectations? From past buying experience, friends and associates advice and marketers and competitors information and promises. If marketers raise expectations too high, the buyer is likely to be disappointed, for example, holiday inn ran a campaign a few years ago called ‘no surprises’ yet hotel guests still encountered a host of problems, and holiday inn had to withdraw the campaign. However, if the company sets expectations too low, it won’t attract enough buyers (although it will satisfy those who do buy). Some of today’s most successful companies are raising expectations and delivering performances to match. These companies are aiming for tcs- total customer satisfaction. Xerox for example, guarantees ‘total satisfaction’ and will replace at its expense any dissatisfied customer’s equipment within a period of three years after purchase. Cigna advertises “well never is 100% satisfied until you are, too.” And one of Honda’s ads says: “one reason our customers are so satisfied is that we aren’t.” Nissan invites potential infinity buyers to drop in for a “guest drive” (not a “test drive”) because the Japanese word for customer is “honored guest.” Look at what high satisfaction can do a customer’s decision to be loyal or to defect is the sum of many small encounters with the company. Customer support following the purchase of a product or service. In some cases, after-sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty€"traditionally one year from the date of purchase, but increasingly two or more years “maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness H R Institute of Higher Education, Hassan P a g e | 47
  48. 48. After Sales & Services with which a supplier deals with a question or complaint, speed of response, and action taken. Quality, price, and service are three factors are critical to the success of any export sales effort. Quality and price are addressed in earlier chapters. Service, which is addressed here, should be an integral part of any company's export strategy from the start. Properly handled, service can be a foundation for growth. Ignored or left to chance, it can cause an export effort to fail. Service is the prompt delivery of the product. It is courteous sales personnel. It is a user or service manual modified to meet your customer's needs. It is ready access to a service facility. It is knowledgeable, cost-effective maintenance, repair, or replacement. Service is location. Service is dealer support. Service varies by the product type, the quality of the product, the price of the product, and the distribution channel employed. For export products that require no service - such as food products, some consumer goods, and commercial disposables - the issue is resolved once distribution channels, quality criteria, and return policies have been identified. On the other hand, the characteristics of consumer durables and some consumables demand that service be available. For such products, service is a feature expected by the consumer. In fact, foreign buyers of industrial goods typically place service at the forefront of the criteria they evaluate when making a purchase decision. 3.1 Service Delivery Options: Service is an important factor in the initial export sale and ongoing success of products in foreign markets. U.S. firms have many options for the delivery of service to foreign buyers. A high-cost option - and the most inconvenient for the foreign retail, wholesale, commercial, or industrial buyer - is for the product to be returned to the manufacturing or distribution facility in the United States for service or repair. The buyer incurs a high cost and loses the use of the product for an extended period, while the seller must incur the export cost of the same product a second time to return it. Fortunately, there are practical, cost-effective alternatives to this approach. If the selected export distribution channel is a joint venture or other partnership arrangement, the overseas partner may have a service or repair capability in the markets to be penetrated. An exporting firm's negotiations and agreements with its partner should H R Institute of Higher Education, Hassan P a g e | 48
  49. 49. After Sales & Services include explicit provisions for repairs, maintenance, and warranty service. The cost of providing this service should be negotiated into the agreement. For goods sold at retail outlets, a preferred service option is to identify and use local service facilities. Though this requires up-front expenses to identify and train local service outlets, the costs are more than repaid in the long run. For example, a leading Canadian manufacturer of consumer personal care items uses U.S. distributors and sales representatives to generate purchases by large and small retailers across the United States. The products are purchased at retail by individual consumers. The Canadian firm contracted with local consumer electronic repair facilities in leading U.S. cities to provide service or replacement for its product line. Consequently, the manufacturer can include a certificate with each product listing "authorized" local warranty and service centers. There are administrative, training, and supervisory overhead costs associated with such a warranty and service program. The benefit, however, is that the company is now perceived to be a local company that competes on equal footing with domestic U.S. manufacturers. U.S. exporters should keep this example in mind when entering foreign markets. Exporting a product into commercial or industrial markets may dictate a different approach. For the many U.S. companies that sell through distributors, selection of a representative to serve a region, a nation, or a market should be based not only on the distributing company's ability to sell effectively but also on its ability and willingness to service the product. Assessing that ability to service requires that the exporter ask questions about existing service facilities; about the types, models, and age of existing service equipment; about training practices for service personnel; and about the firm's experience in servicing similar products. If the product being exported is to be sold directly to end users, service and timely performance are critical to success. The nature of the product may require delivery of on- site service to the buyer within very specific time parameters. These are negotiable issues for which the U.S. exporter must be prepared. Such on-site service may be available from service organizations in the buyer's country; or the exporting company may have to send personnel to the site to provide service. The sales contract should anticipate a reasonable level of on-site service and should include the associated costs. Existing performance and service history can serve as a guide for estimating service and warranty requirements on H R Institute of Higher Education, Hassan P a g e | 49
  50. 50. After Sales & Services export sales, and sales can be costed accordingly. This practice is accepted by small and large exporters alike. At some level of export activity, it may become cost-effective for a U.S. company to establish its own branch or subsidiary operation in the foreign market. The branch or subsidiary may be a one-person operation or a more extensive facility staffed with sales, administration, service, and other personnel, most of whom are local nationals in the market. This high-cost option enables the exporter to ensure sales and service quality, provided that personnel are trained in sales, products, and service on an ongoing basis. The benefits of this option include the control it gives to the exporter and the ability to serve multiple markets in a single region. Manufacturers of similar or related products may find it cost-effective to consolidate service, training, and support in each export market. Service can be delivered by U.S.- based personnel, a foreign facility under contract, or a jointly owned foreign-based service facility. Despite its cost benefits, this option raises a number of issues. Such joint activity may be interpreted as being in restraint of trade or otherwise market controlling or monopolistic. Exporters that are considering it should therefore obtain competent legal counsel when developing this joint operating arrangement. Exporters may wish to consider obtaining an export trade certificate of review, which provides limited immunity from U.S. antitrust laws. 3.2 Ten Rules for Great Customer Service: Think about the last time you had a negative buying experience. Did an e-commerce site fail to respond to your email query? Did a sales associate at your neighborhood computer store fail to know the difference between a floppy drive and a hard drive? Perhaps you were left on hold for an inordinate “Efficient and affordable online customer service training”. Amount of time when you called a mail-order company's toll-free line. Negative buying experiences are almost always linked to shoddy customer service. Even though most businesses claim that they put people first, it's rare to find good customer support. But customer service isn’t extinct. In fact, after consumer groups and the media took potshots last year at e-commerce sites for leaving customers in the lurch, many businesses began to focus more attention on their service. H R Institute of Higher Education, Hassan P a g e | 50
  51. 51. After Sales & Services Strong customer service is a business essential. Providing it isn’t as difficult if you and your employees achieve these 10 basic rules:  Commit to quality service. Everyone in the company needs to be devoted to creating a positive experience for the customer. Always try to go above and beyond customer expectations.  Know your products. Convey an articulate and in-depth knowledge of products and services to win customer trust and confidence. Know your company’s products, services, and return policies inside and out. Try to anticipate the types of questions that customers will ask. Update and amend your FAQ page frequently.  Know your customers. Try to learn everything you can about your customers in order to tailor your service approach to their needs and buying habits. Talk to customers about their experience with your company, and listen to their complaints. In this way, you can get to the root of customer dissatisfaction.  Treat people with courtesy and respect. Remember that every time that you, your employees, and your colleagues make contact with a customer — whether it’s by email, phone, written correspondence, or a face-to-face meeting — the interaction leaves an impression with that customer. Use conciliatory phrases — "Sorry to keep you waiting," "Thanks for your order," "You’re welcome," and "It’s been a pleasure helping you" — to demonstrate not only your commitment to customer satisfaction but your dedication to courtesy.  Never argue with a customer. You know very well that the customer isn’t always right. However, it is important that you do not focus on the missteps of a particular situation; instead, concentrate on how to fix it. Research shows that 7 out of 10 customers will do business with a company again if that business resolves a complaint in their favor.  Don’t leave customers in limbo. Repairs, callbacks, and emails need to be handled with a sense of urgency. Customers want immediate resolution, and if you can give it to them, you will probably win their repeat business. Research shows that the instance of repeat business goes up to 95 percent when complaints are resolved on the spot.  Always provide what you promise. Fail to do this and you’ll lose both credibility and customers. If you guarantee a quote within 24 hours, get the quote out in a day or less. If and when you neglect to make good on your promise, apologize to the customer and offer some type of compensation, such as a discount or free delivery. H R Institute of Higher Education, Hassan P a g e | 51
  52. 52. After Sales & Services Overall, only make promises that you are confident that you and your business can keep.  Assume that your customers tell the truth. Even though it may appear that customers lie to manipulate a situation to their advantage, it is to your advantage to give them the benefit of the doubt. The majority of customers don’t like to complain; in fact, they’ll go out of their way — perhaps all the way to a competitor — to avoid it. If you hear unhappy rumblings from your customers, take their complaints to heart and do your best to appease their dissatisfaction.  Focus on making customers — not on sales. Salespeople, especially those who get paid on commission, sometimes focus on the volume instead of on the quality of the sale. Remember that to keep a customer’s business is more important than to close a sale. Research shows that it costs six times more to attract a new customer than it does to keep an existing one. Moreover, happy customers are the best and most effective way to find new customers. To ensure that you accurately track your customers, your business might want to invest in CRM software. Read our overview, to get a handle on that type of program.  Make it easy to buy. The buying experience in your store, on your Web site, or through your catalog should be as easy as possible. Eliminate unnecessary paperwork and forms, help people to find what they need, explain how products work, and do whatever else you can to facilitate transactions. 3.3 Assuring Customer Satisfaction: "Those who enter to buy, support me. Those who come to flatter, please me. Those who complain, teach me how i may please others so that more will come. Only those who hurt me are displeased but do not complain. They refuse me permission to correct my errors and thus improve my service." - Marshall Field. The attitude of the professional is summed up in this statement. It establishes the customer as the person to whom you are responsible. Customers support you; therefore, they deserve vip treatment. When your customers are happy, you are happy. When they complain, you are unhappy, but you examine the complaint calmly and see it as an opportunity to learn as well as satisfy their needs. The quote echoes the fear that customers will not vocalize their dissatisfaction, but instead take their business elsewhere. H R Institute of Higher Education, Hassan P a g e | 52
  53. 53. After Sales & Services There's another quote that's even more important to salespeople and companies immediately upon making a sale-- "The sale begins when the customer says...yes." In the old days, it used to be, "the sale begins when the customer," but that's a totally inappropriate attitude to embrace in today's customer-driven business environment. 3.4 Keeping your customers happy Since your first concern is customer satisfaction you should be aware of some emotional stumbling blocks in your path: selective perception, user error and buyer's remorse. Selective perception is the process in which a person sees only selected details from the entire picture. This attention to detail is sometimes petty. For example, a customer may have a new copying machine that works like a charm, but he is irritated by the sound of the motor. He focuses only on what is wrong rather than what is right. This occurs because buyers expect their purchases to be perfect. Regardless of the purchase price, they figure that for what they spent, they deserve perfection. When you encounter someone who practices selective perception, evaluate the situation to determine if the complaint is reasonable or exaggerated. If it is exaggerated, try to resolve the problem by pointing out benefits and features that compensate. Put the negative detail in a different perspective for your client so that it becomes one small part of the total picture. Many sales involve the installation of a new system or piece of equipment, and the buyer or their employees must be trained to use it. Their successful use of the equipment depends upon the effectiveness of the training, and it is imperative that the salesperson follows through after the training period to make sure the client uses the purchase properly. It is not uncommon for people to forget 75 percent of what they hear after two days. This can cause "user error", which will significantly affect the outcome of your test and may prevent your client from reaching his success criteria. Often a client will be unhappy about a purchase and not realize that it is due to improper operation. The more complex something is, the more training it requires using it H R Institute of Higher Education, Hassan P a g e | 53
  54. 54. After Sales & Services properly. In the interest of implementing the product quickly, users may settle for incomplete training or become sloppy in their application of good training. In any case, look for user error whenever a success criterion is not reached. "Buyer’s remorse" refers to the regret that a buyer feels after making a purchase. It could be caused by selective perception, user error, or the client's error. Whatever the reason, the full benefits of the product are not realized. Buyer's remorse can also be caused by the economics of the purchase: until the benefits prove themselves to be cost effective, a buyer regrets having made the purchase. It is the responsibility of the salesperson to assuage these fears by assuring the client that his investment is wise and sound. Reiterate some of the selling points that convinced him to buy it originally, present data, and put him at ease. 3.5 Handling customer complaints Whether your customer's complaint is legitimate or not, follow it up with a service call. Whenever possible, do it personally instead of sending someone from the customer service department. It provides the personal service that your customer appreciates and it may obviate the need for a technician or serviceman to call. As an alternative, both of you can go together to handle customer complaints. Keep the following guidelines in mind:  Don't procrastinate making the call. Often the problem is not as serious as it sounds. Some customers "read the riot act" when they call about a complaint. A delay in responding will only irritate your client more.  Admit mistakes and apologize. Just because you made the sale does not mean you can become defensive about your company, product or service. Even the most reputable companies make mistakes and have problems with their products. You may want to restate the customer's complaint to show that you are listening and have an understanding of the problem.  Show compassion for your customer. H R Institute of Higher Education, Hassan P a g e | 54
  55. 55. After Sales & Services Whether the complaint proves to be true or false, show your customer that you are concerned and will investigate the problem immediately. Help the customer calm down by saying, "i can understand why you feel the way you do."  Actively listen to your customer's complaint. Talking will make him feel less anxious about it. Let your customer "vent" his feelings before you react to the situation. Be sympathetic and encourage the customer to "blow up." afterward, he'll feel better; this means he'll be in a better frame of mind.  Don't pass the buck to your company or someone else within it. This may take the blame off you, but it undermines the integrity and organization of the company, and your customer will lose confidence in your firm. 3.6 Maintaining customer satisfaction The philosophy behind maintaining your customers is simple; now that you have them, maintain them. When you consider the amount of time and money invested in them, you cannot afford to lose them. This investment goes beyond your personal expenditures. It also includes your firm's advertising and marketing costs to reach that particular market segment. Your customers, therefore, should be treated as if the life of your business depended on them - which it does! Find below the different ways to keep your customer’s satisfied after Sales & Services, 1. Show them that you think of them. Send them helpful newspaper clippings or articles, cartoons related to their business and "here's an idea i thought you'd enjoy" notes. Send your clients Christmas/new year's cards, birthday cards, and thank you notes. 2. Drop by to show them new products and brochures and offer additional services. Always make an appointment before making your call! Respect your clients' time as you do your own. 3. Offer a sample gift to enhance the use of your product. H R Institute of Higher Education, Hassan P a g e | 55
  56. 56. After Sales & Services See how they are utilizing your product or service and suggest other ways that they can benefit from it. They may not be realizing its full potential. 4. Offer "customer discounts" on new products or services to encourage additional business. 5. When new employees are hired, offer to train them free of charge in the use of your product. 6. Repay or compensate them for lost time or money caused by problems encountered with your product. If you pinch pennies, your customer may do the same. 7. Be personal. Record details about your client's life and enter these in your file. It's so much nicer to say to someone, "how is bob?" rather than, "how's your husband?" 8. Tell the truth. Lies have a way of coming back to haunt you. 9. Accept returns without batting an eyelash. In the long run, they are much less expensive than finding a new customer. 10. Be ethical. Keep all your information about the account confidential. 11. Be certain that your company follows through on its commitment. This includes delivery, installation, packaging, and so on. 12. Show your appreciation for their referrals by reporting back to them on the outcome. 13. If your company has a newsletter, obtain permission from your successful clients to write about them in it. Naturally, you would send them a copy. 14. Keep track of their results with your product and meet periodically to review the entire picture (their business, industry, trends, competition, etc.) 15. Keep the lines of communication forever open. As in any relationship, you must be able to exchange grievances, ideas praises, losses, and victories. H R Institute of Higher Education, Hassan P a g e | 56
  57. 57. After Sales & Services What all of this comes down to is that you should be willing to "go the extra mile" for your accounts. They extra effort you expend now will be repaid handsomely in the future.The bottom line in maintaining your clients is service, service and more service. Be there for your customers and they'll want to stick with you. If you meet their needs, they'll think twice before switching to another company, even if they've voiced some serious concerns. "make new clients, but keep the old. One is silver and the other gold." develop the "gold" you have and the silver may take care of itself. 3.8 Customer satisfaction in 7 steps:- It's a well-known fact that no business can exist without customers. In the business of website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved. 3.8.1. Encourage face-to-face dealings: This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale. 3.8.2. Respond to messages promptly & keep your clients informed: This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon H R Institute of Higher Education, Hassan P a g e | 57
  58. 58. After Sales & Services as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way i was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologies repeatedly, which was nice. Now if they server had just gone down with no explanation i think i'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service. 3.8.3. Be friendly and approachable: A fellow site pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous. 3.8.4. Have a clearly defined customer service policy: This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, whom should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful. 3.8.5. Attention to detail (also known as 'the little niceties'): Have you ever received a happy birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. H R Institute of Higher Education, Hassan P a g e | 58