Abstract: Introduction: Customer Satisfaction Towards TVS Apache: A Case Study in Tirupati

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1 Customer Satisfaction Towards TVS Apache: A Case Study in Tirupati Authors: Dr. Duggani Yuvaraju (PDF-Scholar) & Dept of Management Studies, S.V.University, Andhra Pradesh, Tirupati dugganiyuvi@gmail.com Prof. S. Durga Rao, Dept of Management Studies, S.V.University, Andhra Pradesh, Tirupati profsdr@yahoo.co.in Abstract: Companies should think about the millennium as a golden opportunity to gain mind share and heart share. In this paper, we have taken 100 respondents, out of 100 respondents we found that the 65% of the respondents said that they came to know about Apache through Friends & relatives. 56% of them have selected Apache because of its shape and style. 40% of the respondents are using TVS Apache for less than one year. Most of the respondents said that the price of Apache is reasonable. 58% of the respondents said that the features of Apache are good. 58% of the respondents said that the performance of Apache is good. Most of the respondents feel that the major problem is engine. Most of the respondents feel that after sales service is satisfied. Most of the respondents said that the maintainance cost is affordable. Key words: customer satisfaction, performance, sales, style, features, price, and strengths. Introduction: The invention of the first twowheeler is a much-debated issue. who invented the first motorcycle? may seem like a simple question, but the answer is quite complicated. Two-wheelers owe their descent to the safety bicycle with front and rear wheels of the same size, with a pedal crack mechanism to drive the rear wheel. Those bicycles, in turn descended from high-wheel bicycles. The propelled by the rider s feet pushing against the ground. These appeared around 1800, used iron-banded wagon wheels, and were called bone-crushers, both for their jarring ride, and their tendency to toss their riders. Gottlieb Daimler (who later teamed up with Karl Benz to from the Daimler-Benz corporation) is credited with building the first motorcycle in 1885, one wheel in the front and one in the back, although it had a smaller springloaded were of the iron-branded woodenspooked wagon-type, it definitely had a bone-crusher chassis. This two-wheeler was powered by a single-cylinder Ottocycle engine, and may have had a spraytype carburetor.(wilhelm Maybach, Daimler s assistant, was working on the spray carburetor at the time). If two wheels with steam propulsion can be called a motorcycle, then the first one may have been America. One such machine was demonstrated at fairs and circuses in the eastern US in This was built by one Sylvester Howard Roper of Roxbury, Massachusetts. There is an existing example of a Roper machine, dated A charcoal-fired two- cylinder engine, whose connecting rods directly 379

2 drive a crack on the rear wheel. The TVS Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two wheelers and three wheelers) home appliances, lighting, iron, and steel, insurance, travel and finance. The group s flagship company TVS auto is ranked as the world s fourth largest two and three wheeler manufacturer and the TVS brand is well known in over a dozen countries in Europe, Latin America, the US and Asia. Founded in 1926, at the height of India s movement for independence from the British, the group has an illustrious history. The integrity, dedication resourcefulness and determination to succeed which are characteristic of the devotion to a common cause. Jamnalal TVS, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhi had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal TVS with much time to spend on his newly launched business venture. His son, Kamalnayan TVS, then 27, took over the reins of business in 1942.He too was close to Gandhi and it was only after Independence in1947, that he was able t give his full attention to the business. Kamalnayan TVS not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman and Managing Director of the group, Rahul TVS, took charge of the business in Under his leadership, the turnover of the TVS Auto the flagship company has gone up from Rs.72 million to Rs billion(usd936 million), its product portfolio has expanded from one to and the brand has found TVS Motor sales revenue up to 2014: Two-wheeler major, TVS Motor Company posted a nearly 13 per cent increase in sales revenue for the quarter ended December 31, 2013 at Rs 2, crore, as against Rs 1, crore in the corresponding year-ago quarter. The company s net profit for the third quarter jumped a little over 31 per cent at Rs 68.8 crore, from Rs crore reported in the December quarter of The increase in sales revenue and net profit is attributed to higher exports and also significant rise in three-wheeler sales. TVS Motor exported 0.61 lakh two-wheelers in the quarter under review, as against 0.5 lakh units in the corresponding year-ago quarter, registering a 22 per cent increase in exports. The company sold 20,701 units of three-wheelers in the latest quarter as against 13,602 units in the corresponding quarter of 2012, registering 52 per cent higher sales of threewheelers.in the domestic market, the company s two-wheeler sales improved marginally during the quarter at 5.12 lakh units, as against 5.03 lakh units in the comparable quarter of the previous year. While motorcycle sales inched up to 2.07 lakh units (1.97 lakh units), the sale of scooters increased to 1.23 lakh units (1.12 lakh units) during the period. For QFY2014, TVS Motor Company (TVSL) posted strong results, which were broadly in-line with our estimates, led by strong exports performance and superior productmix. Top-line grew by a strong 13 per cent yoy (3.5 per cent qoq) to Rs 2,058 crore, inline with our estimates of Rs 2,051 crore, on the back of an impressive 12.7 per cent yoy (1.7 per cent qoq) growth in net average realization, says Yaresh Kothari, research analyst auto & auto ancillary, with broking house Angel Broking. The net average realization was aided by superior productmix (higher share of scooters, threewheelers and exports) and also due to better realization on the exports front. Total volumes though remained flat due to weakness in the domestic segment, Kothari 380

3 added. We expect the operating environment to improve for the company given that its new scooter launch, Jupiter has been accepted well by the markets. The company further intends to launch one more scooter (upgraded Scooty) to consolidate its position in the segment. Additionally, the volumes would also get a boost from the new launches in the motorcycle segment, strong focus on exports and entry into Nigerian market, he pointed out. Growth rate of Apache Consistent and predictable growth and returns strategy: After taking significant steps to reposition Apache in 2013, the company has enhanced its strategy to deliver consistent, repeatable and reliable production growth while remaining focused on rates of return. The assets in Apache s portfolio today and going forward will either drive meaningful production growth or provide significant excess cash flow to fund growth in other areas. North American onshore production will power Apache s future growth. These regions contribute 60 percent of Apache s worldwide production on a pro-forma basis. Texas, Oklahoma: delivering more liquids: The Permian and Central regions serve as the foundation for Apache s future worldwide production growth that is projected to be up 5 to 8 percent in These two regions have contributed consistent, predictable production increases the past five years, delivering 21 percent and 31 percent compounded equivalent barrel growth and liquids growth, respectively pro forma: This pro forma present s 2013 production Gulf of Mexico Shelf and Canada (including proposed 2014 without tax barrels and excluding non-controlling interest, a Argentina operations. Permian and Central region growth history: Substantial International Free Cash Flow Generation: Apache s international assets in Egypt and the North Sea currently provide substantial free cash flow, which funds the growth of our U.S. onshore and other areas at accelerated rates. Australia will be a net cash user through 2016 until the Wheatstone LNG project begins producing, but after first production the region will also become a tremendous free cash flow generator.in addition, Apache has exposure to several large development projects that will contribute to its production growth during the next three years, including the Lucius and Heidelberg oil developments in the deepwater Gulf of Mexico; the Upper Pyrenees, Moondyne, Balnaves and Coniston projects in Australia; and the Forties Alpha Satellite Platform project in the North Sea. Share buybacks and dividend increasing: boosting returns to shareholders: Apache will continue to return capital to its shareholders. The company s common stock dividend has increased sharply the past several years, including a 25 percent increase in 2014, which was preceded by an 18 percent increase in In 2013, Apache s Board of Directors also approved a $2 billion share repurchase authorization and, as of February 2014, Apache had repurchased $1.2 billion of common stock in the open market. Re- 381

4 focusing Apache s growth in North American onshore areas fits the company s core competencies well; Apache has a long history of allocating capital to generate attractive rates of return, growing production while driving down costs and creating longterm value for our shareholders. We continue to believe our stock is a compelling investment at current price levels. CUSTOMER SATISFACTION: Companies should think about the millennium as a golden opportunity to gain mind share and heart share. Philip Kotler. In 21 st century, the approaches of the organization towards its customers have dramatically changed. The shift in paradigm was mainly attributed to the strigent competition it is facing. Growing consumerism among the customers, who demanded value from the possibilities of information interchange and technologies advancements that made things happen, which were once considered as a more dreams. REVIEW OF LITERATURE, Hemant C R, 2011 emphasized the need of continuous market research. He suggested that there is a genuine need of continuous sales analysis so as to sustain the market share. Rishikesha T Krishnan and Ganesh N Prabhu, 1999 suggested in their study entitled 'Creating successful new products: Challenges for Indian industry' that success of business in India will be determined by the marketing strategies targeting the rising urban middle class. Virupaxi Bagodi and Biswajit Mahanty, 2008 highlighted customer satisfaction as corner stone of sustainable growth in two wheeler industry. K Narsaimhan, 2003 this paper reviews the current marketing practices in the two wheeler industry and their impact on consumer. Joshi Vand LittleI, 1996 this paper studied the evolution of the competition structure of the two wheeler industry in India and stress consumer preference as an important factor in planning sales strategies. OBJECTIVES To know The Customer Satisfaction level towards TVS Apache. To find out the opinion of customer regarding design, style and Features of Apache. METHODOLOGY A research design is considered as the framework or plan for a study that guides as well as helps the data collection and analysis of data. The research design will be experimental for the study. The data will be collected from both primary and secondary sources. The primary source of data will respondents concerned and collected by using a predefined questionnaire. Data sources The researcher will gather both secondary data and primary data. Secondary data: The secondary data will be collected from the Reports of Reserve Bank 382

5 of India, articles, Journals from Indian management, journals of services marketing,, journals of marketing, journals business reviews, journals of the academic of marketing science, journals of marketing research, journals of retailing, and south Asian journal of marketing, Newspapers and Websites. Primary data: The primary data will be collected from the sample beneficiaries through a well structured questionnaire. Here 100 respondents will be taken from public sector banks, i.e. State Bank of India and Andhra Bank employees. Analysis and interpretation, TABLE-1: Research approach: primary data can be collected in surveys method. Research instrument: research instrument in collecting primary data is questionnaire. Sampling Design: The study is based on both primary and secondary data. Sampling units: customers of two wheelers (apache). Sample size: sample size is 100 Sampling Procedure: random Sampling Method will be used for collection of primary data. Contact method: Personal interview Analytical Tools: Percentage analysis &weighted Opinion of customer awareness regarding TVS apache Advertisement Friends & Relations Company representatives 5 5 Awareness of Apache: Interpretation: 30% of the respondents came to know about apache through advertisement, 65% of the respondents came to know about the Apache through friends and relations, 5% of the respondents came to know about Apache through company representatives. 383

6 TABLE-2: Influencing factors Brand name Style Economic price 3 3 Mileage 4 4 Pick up Interpretation: 10% of the respondents said that they have selected TVS APACHE because of Brand Image. 56% of them have selected apache because of its style. In case of 3% of the respondents, Economic price of apache, 4 and 27 % of respondents said that they have selected because of mileage and pick up. TABLE-3: Opinion of customers regarding years. 1 yr yrs yrs yrs Greater than 7yrs

7 Interpretation: 40% of the respondents are using TVS Vehicle for less than 1 year, 20% of them have been using for three years, 22% of them are using since 5 years, 17% of them are using for 7 years, 1% of them are using more than 7 years.. TABLE-4: Strenghts of TVS vehicles: Less cost 3 3 Mileage Safety Quality Life Period Interpretation: 3% of the respondents said that cost is less, 26% of the respondents said that mileage is good, 29% of the respondents said that safety mechanism is good, 30% of the respondents said that is impressive, 12% of the respondents said that life period is high in TVS Vehicles. TABLE-5: Opinion of customers regarding to choose TVS Shape and Style

8 Features 5 5 Color 2 2 Mileage 3 3 Pickup Interpretation: it can be observed that 69% of the respondents said that they choose apache on shape and style, 5% of the respondents said they choose apache on features, 2% of the respondents said they can choose apache on color, 3% of the respondents said they can choose apache on mileage, 21% of the respondents said they can choose apache on pick up. TABLE-6: Opinion of customers regarding to features Disc brakes Electric start Appearance Price 6 6 All the above

9 Interpretation: It can be observed that 33% of the respondents said that they can like features on disc brakes, 14% of the respondents said they can like features on Electric start, 24% of t he respondents said they can like features on appearance, 6% of the respondents said they can like features on price, 23% of the respondents said they can like features all the above. TABLE-7: Opinion of customers regarding price Expensive 28 28% Reasonable 62 62% Economic 10 10% Interpretation: It can be observed that 28% of the respondents said that the price of the bike is expensive, 62% of the respondents said that price of the bike is reasonable, 10% of the respondents said that the price of the bike is economic. TABLE-8: Opinion of customers regarding performance of apache Factors Respondents Weighted Wt F No % Excellent Good Average Poor Very poor

10 Interpretation: 18% of the respondents said that the performance of apache is excellent, 58% of the respondents said that performance of apache is good, 20% of the respondents said that performance of apache is average, 2% of respondents said that the performance of apache is poor, 2% of the respondents said the performance of apache is very poor. Weighted average mean= 388/100 = 3.88 TABLE-9: Opinion of customers regarding service Factors Respondents Weighted Wt F No % Excellent Good Satisfactory Poor Very poor Interpretation: 5% of the respondents said that the opinion about service is excellent, 50% of the respondents said that opinion about service is good, 29% of the respondents said that opinion about service is satisfactory, 15% of the respondents said that opinion about service is poor, 1% of the respondents said that opinion about service is very poor. Weighted average mean = 343/100 = 3.43 TABLE-10: Opinion of customers regarding mileage 388

11 Factors Respondents Weighted Wt F No % Excellent Good Satisfactory Poor Very poor Interpretation: 4% of the respondents said that the mileage of Apache is excellent, 40% of the respondents said that mileage of Apache is good, 50% of the respondents said that mileage of Apache is satisfactory, 3% of the respondents said that mileage of Apache is poor, 3% of the respondents said that mileage of Apache is very poor. Weighted average mean = 339/100 = 3.3 TABLE-11: Opinion of customers regarding problem of vehicles Engine Tank Suspension Mileage Break system

12 Respondents Engine 20 Tank 25 Suspension 15 Mileage 30 Break system 10 Respondents Interpretation: 20% of the respondents said that engine problem, 25% of the respondents said that tank problem, 15% of the respondents said that suspension, 30 % of the respondents said that mileage, and 10 % of the respondents said that break system. TABLE-12: Opinion of customers regarding maintaince of apache Excellent Good Affordable Excellent Good Affordable 32 Interpretation: 48% of the respondents said that maintainance of Apache is excellent, 32% of respondents said that maintainance of Apache is good, 20 % of the respondents said that maintainance of Apache is affordable. TABLE-13: Opinion of customers regarding service adviser Factors Respondents Weighted Wt F No % Excellent

13 Good Normal Poor Excellent Good Normal Poor 40 Interpretation: 40% of the respondents said that service adviser is good, 35% of respondents said that service adviser is excellent, 15% of the respondents said that service adviser is normal; and 10% of the respondents said that poor. Weighted average mean = 300/100=3 Opinion of customers regarding service adviser TABLE-14: Factors Respondents Weighted Wt F No % Excellent Good Normal Poor

14 Excellent Good Normal Poor Series1 Interpretation: 43% of the respondents said that excellent, 37% 0f the respondents said that overall satisfaction is good, 11% of the respondents said that normjal, and 9% of the respondents said that poor. Weighted average mean = 314/100=3.14 TABLE-15: Opinion of customers regarding overall satisfaction on TVS Apache and service Factors Respondents Weighted Wt F No % Excellent Good Normal Poor Series Excellent Good Normal Poor Interpretation: 29% of the respondents said that excellent, 35% 0f the respondents said that overall satisfaction is good, 11% of the respondents said that normjal, and 16% of the respondents said that poor. 392

15 Weighted average mean = 277/100=2.77 FINDINGS: 65% of the respondents said that they came to know about Apache through Friends & Relatives. 56% of them have selected Apache because of its SHAPE and style. 40% of the respondents are using TVS Apache for less than one year. Most of the respondents said that the price of Apache is reasonable. 58% of the respondents said that the features of Apache are good. 58% of the respondents said that the performance of Apache is good. Most of the respondents feel that the major problem is engine. Most of the respondents feel that after sales service is satisfied. Most of the respondents said that the maintainance cost is affordable. SUGGESTIONS: Some of the of the respondents felt that price of the Apache is expensive, company may take necessary measures to reduce price without compromising quality. Though most of the customers satisfied with the after sales service provided by the company, it is good to improve after sales service to give more satisfaction of the customer. Major problem faced by the respondents is the engine of the Apache.So update the new tcchnology to avoid engine problems. Company should come up with new varieties of advertisement and mantain public relations to create awareness to customers. Majority of the people using TVS APACHE and facing many problems from different spare parts. So concentrate on up coming bikes. It is better to improve service adviser communication for the customers. CONCLUSION: Based on findings it can be concluded that customers are satisfied with Apache s Style, Features and Pickup. Pulsar is developed on latest technology of its kind for the middle and upper middle segments. When compared to prices other TVS Vehicles, Price of Apache is High. Mileage is not up to expectation level of customers. So suitable measures to be taken to increase mileage and reduce price to get 393

16 References more appreciation from the customer. 1. Philip Kotler, Marketing Management, 11/e, Pearson Publishers, Rajan Saxena, Marketing Management, 2/e, Tata Mc Graw Hill, G.C.Beri, Marketing Research, 3/e, Tata Mc Graw Hill, New Delhi, S.P.Gupta, Statistical Methods,13/e, Sultan Chand & Sons, New Delhi, Hemant C R (2011) A project report on customer satisfaction of two wheelers industry with special reference to Yamaha motors. 10. Rishikesha T. Krishnan & Ganesh N. Prabhu,(1999) Creating Successful New Products: Challenges for Indian Industry. 11. Virupaxi Bagodi, Biswajit Mahanty, (2008) "Two-wheeler service sector in India: factors of importance for sustainable growth", Journal of Advances in Management Research, Vol. 5 Iss: 1, pp K. Narasimhan, (2003) "Quality from Customer Needs to Customer Satisfaction", the TQM Magazine, Vol. 15 Iss: 6, pp Joshi, V., Little, I India's Economic Reforms: New Delhi, Oxford University Press wth/index.aspx rs- Authors 68-crore-q3-profit-592 *I am Dr D Yuvaraju, my specialization is marketing in MBA. I have two years experience in teaching. I have been selected as post doctoral fellow by ICSSR. Prof S. Durga Rao, Professor and Head,. 394