Customer satisfaction after sales & services of mahindra&mahindra

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

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. .



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


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


•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.



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



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:-

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.



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

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

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.

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

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:



 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.

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


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.


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 &


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


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.


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.


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.


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.


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.



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:



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:-



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.



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:

 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


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.


 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



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

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.


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


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

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


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.


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


Rated RPM: 2300 RPM



TRANSMISSION:

Type: Partial Constant Mesh


CAPACITY:

Fuel Tank: 55 Ltrs.

Engine oil sump: 7.8 Ltrs.




DIMENSION:






MAHINDRA BHOOMIPUTHRA 265 DI

ENGINE:
Type: MDI 1895
Horse Power: 30 HP
No. of Cylinders: 3
Rated RPM: 2300 RPM

TRANSMISSION:
Type: Sliding Mesh
Max. Speed- Front: 29.25 KMPH
Max. Speed- Back: 12.2 KMPH

CAPACITY:
Fuel Tank: 45 Ltrs.


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


Rated RPM: 2300 RPM



TRANSMISSION:

Type: Sliding Mesh

Max. Speed- Front: 30.48 KMPH

Max. Speed- Back: 12.72 KMPH

CAPACITY:

Fuel Tank: 45 Ltrs.


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
Rated RPM: 2100 RPM
Air Cleaner: Dry air cleaner with Pre-cleaner

TRANSMISSION:
Type: Concentrate Mesh

CAPACITY:
Fuel Tank: 55 Ltrs.


Engine oil sump: 9.4 Ltrs.

DIMENSION:
MAHINDRA ARJUN 555

ENGINE:

Model: NE 452
Horse Power: 52 HP
No. of Cylinders: 4
Rated RPM: 2100 RPM
Air Cleaner: Dry air cleaner with Clog Indicator

TRANSMISSION:
Type: Full constant mesh with Neutral safety switch

CAPACITY:
Fuel Tank: 65 Ltrs.
Max. Weight carried: 1800 KG

Lower link: CAT II size

DIMENSION:
Max. Width: 1940 M.M


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


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.


 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.



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


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

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


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

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.


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.

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.


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 says...no," 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


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.


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.


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.

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


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.

Customer satisfaction after sales & services of mahindra&mahindra

Customer satisfaction after sales & services of mahindra&mahindra

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