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Brm project report [meru cab]


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resarch studies

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Brm project report [meru cab]

  1. 1. 2015 RohanKohli A1802014196 SwarnimaPachaury A1802014053 Yashaswi Madan A1802014106 MBA-IB,C [2014-16] AIBS 3/30/2015 MERU CABS BUSINESS RESEARCH METHODOLOGY
  2. 2. ABOUT MERU CABS Meru Cabs is one of the first companies to launch metered "Radio cabs" in India under its brand "Meru." First launched in Mumbai in April 2007, Meru Cabs has grown exponentially in terms of fleet size and geographical presence. Customers benefit from a relaxed commute in a well equipped, air-conditioned cab, which is readily available 24/7. Headquartered in Mumbai, Meru Cab Company provides a radio taxi service in the four key metros of India - Mumbai, Delhi, Hyderabad and Bengaluru. Meru Cabs delivers a reliable taxi service by concentrating on each touch point with its customers and devising systems, processes or technologies that will deliver a reliable interface. Meru Cabs uses GPS/GPRS enabled technology in all of the cabs to ensure complete passenger safety. Each Meru cab is owned & maintained by Meru Cab Company Private Limited. The name "Meru" is derived from the symbolic mountain of the gods, an icon of unshakeable reliability and character - a core value which lies at the heart of Meru's promise to its customers. TRANSPORTATION INDUSTRY The most common road vehicle is the automobile; a wheeled passenger vehicle that carries its own motor. Other users of roads include buses, trucks, motorcycles, bicycles and pedestrians. As of 2010, there were 680 million automobiles worldwide. Automobiles offer high flexibility and with low capacity, but are deemed with high energy and area use, and the main source of noise and air pollution in cities. In the urban areas Radio taxis are the most preferred mode of transportation for the local people.
  3. 3. In India, the most common taxis are Premier Automobiles (Fiat), Maruti Omni, Tata Indica and Hindustan Ambassador. Small LPG auto-rickshaws are more commonly used in the suburbs. Recently Toyota Innova and Toyota Corolla are becoming more common. According to Government of India regulations, all taxicabs are required to have a fare-meter installed. However, enforcement by authorities is lax and many cabs operate either without fare-meter or with defunct ones.
  4. 4. Analysis of the Research The group collected responses from 100 respondents mostly students, few office goers, a handful of working women and from some old aged people. The interpretations are as follows: Factor Analysis 1. Correlation Matrix: This correlation matrix summarizes the interrelationship among set of variables or a set of items in a scale. In our case the determinant value for the Correlation matrix is 0.73 i.e. it lays between 0 to 1 and hence according to the thumb rule if the determinant value lies between that ranges then we can conclude that the correlation matrix is neither an identity matrix nor a singular matrix. This value confirms the assumption that there are sufficient inter relationships among our study items. 2. KMO & Bartlett’s Test: The output shows that there is sample adequacy of 0.750 and according to the thumb rule any value above 0.6 suggests that the sample taken is adequate. Hence in our case the sample taken is adequate. Larger the value of Bartlett test indicates greater likelihood the correlation matrix is not an identity matrix and null hypothesis will be rejected. In this example, The Bartlett test value (560.670) is significant
  5. 5. (i.e., a significance value of less than .05); this means, we may reject the null hypothesis that our correlation matrix is an identity matrix and will conclude that the variables are correlated highly enough to provide a reasonable basis for factor analysis. 3. Rotated Component Matrix: The initial SPSS output shows that there are cross loading in factors, hence we removed a few variables from our research work and again performed Factor Analysis. The output is shown below:
  6. 6. This output now shows that cross loadings are removed from the factors and we have identified 4 factors through the help of factor analysis. The factors are:  Quality(Factor 1) – includes reliability, re-booking, customer service, accessibility, GPRS/GPS Technology & Maintenance  Convenience(Factor 2) – includes comfort, timely service & booking is easy  Responsiveness(Factor 3) – includes drivers are customer friendly & Value for money  Worthiness(Factor 4) – includes brand name and waiting costs Regression Analysis
  7. 7. 1. Model Summary: The in SPSS regression output shows the model summary, which provides the value of R (Multiple Correlation), R2 (Coefficient of Determination) and Adjusted R2 (R2 adjusted with Degrees of Freedom). In this model, R has a value of 0.556. This value represents the multiple correlations between dependent and independent variables. The value of R2 shows all the three independent variables can account for 31 % of the variation in Likeliness. In other words, if the researcher would like to explain the contribution of all these four factors on likeliness, looking at the R2 it is possible. This means that around 34 % of the variation in likeliness cannot be explained by these factors. Therefore, it can be concluded that there must be other variables that have influence on likeliness. 2. Coefficients: Therefore, it can be interpreted that if our independent variable is increased by one unit (CONVENIENCE), then our model predicts that 35% change in depended variable (here Likeliness) occurs while holding other variables like Quality, Responsiveness & Worthiness constant. Also it means that there is an inverse relationship between responsiveness & with likeliness. That is if the company focuses more on these factors it will not help increase customer likeliness.
  8. 8. Note: The significance of Factor 4 exceeds 0.05. So we have not considered factor 4 for our further study. Thus through this model we are able to predict that:  Convenience which includes: includes comfort, timely service & booking is easy is the most contributing variables that differentiate this brand from other cab service providers.  Customer likeliness is more dependent on these variables and the company should focus their efforts in providing more comfort in the car with proper leg space and enough space for storage of luggage  Also it is seen that customers perceive that Meru Cab is providing timely service and therefore it should increase its fleet of cars so that it can continue to be able to provide timely service even in case of heavy emergency  Moreover customers prefer Meru Cab because of its ease of booking. Hence we suggest that Meru cab should strengthen their backend operations specially the customer service & the call center department which handles customer queries. This will enable them to provide more quick, error free and efficient solution to all customer queries and customer likeliness will definitely increase if they can provide smoother backend operations.
  9. 9. MARKETING ANALYSIS Managing Service Differentiation: It’s evident from the research that the Meru Cabs is offering better service than other cabs in terms of comfort, timely service and above all it also offers innovative feature like the well managed GPS/GPRS. Hence it proves a point of service differentiation. Managing Service Quality: As we know that customer satisfaction and retention are few measure of quality as we can see from the project that meru cab provides timely service, comfort.. Hence because of that it is able to retain its customers. Also we have suggested in order maintaining its service quality, meru cab will have to increase its fleet of cars. So as to reach the customers as quick as possible. Interactive Marketing: Service quality heavily depends on quality of the customers and service provider, customers prefer Meru Cabs because of its superior customer service, hence in order to strengthen its service Meru Cabs should develop interactive marketing which will help it to excel in providing service and eliminate the errors.
  10. 10. Meru Cab Advantages:- 1) Simplifies Decision Making of the customer: As Meru cab provides timely service, level of comfort and since booking is also quite easy as compared to other competitiors existing in the industry, it compels people to opt for Meru Cabs as compared to its competitiors. 2) Reasonably a few features like reliability, re-booking, easy accessibility, GPS/GPRS technology and maintenance, the Meru Cab brand earns competitive advantage in the market as compared to other cab service providers 3) Willingness to pay more for Meru Cabs.
  11. 11. Annexure I FGD REPORT Objective: To derive the factors that influences the consumer’s decision while choosing a cab service. Duration: 15minutes No. of Male/ Female: Male: 4 Female: 2 Minutes: The FGD was conducted on 6th Feb at 6pm. The primary purpose was to find out the various factors that influences the consumer’s decision while choosing a cab service. The respondents were selected on a random basis and the sampling unit were the MBA students. The FGD was focused on various questions such as the occasion when they use cab service, what influences the decision while choosing a cab, what factors they look into while booking a cab service. The various factors observed during the FGD are given below. Factors Observed: The respondents shared their opinions on a number of factors. The cab service is occasionally preferred by all the respondents. Occasions such as late nights or while travelling with luggage or time constraints makes them prefer the cab service. While choosing the cab service majority of the respondents opined that they prefer timely, efficient and quality of service. The brand name played a small role in selecting the Cab service. Fares are also a constraint for some of the respondents. Since safety is a concern for some female respondents especially during the nights, they preferred a branded service. The quality of service provided in terms of technology also influenced their decision
  12. 12. Annexure II Questionnaire Name: Age: Gender: What is your occupation?  Student  Employed  Entrepreneur  Retired Have you ever availed the services ofMeru Cab?  Yes  No If yes, please fill in the following questionnaire about your experience on the services of Meru Cabs: Sr. No. Description Strongly Disagree Disagree Neutral Agree Strongly Agree 1 I am comfortable in Meru Cab 2 It is safe to travel in meru cabs 3 Meru Cab provides timely service
  13. 13. 4 Booking Meru Cab is easy 5 Meru cabs are reliable in case of any emergency 6 Mode of payment is flexible 7 I would prefer to re-bookthe cab in future 8 Meru Cab customer service responds well 9 The service is available to any place in the city 10 I prefer Meru cab because of its brand name 11 Meru Cab serves on a short notice 12 The waiting costs and night time fares are reasonable 13 GPS/GPRS Technology used by meru cabs gives an edge over other cab service providers. 14 Meru Cabs are well maintained 15 Drivers are customer friendly 16 Meru Cab is value for money 17 Likeliness for Meru Cab
  14. 14. ANNEXURE III