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Words are only vehicles, which would carry my emotions and thoughts, when I step
in the door of completion of my project work for summer training of two months.
It gives me great pleasure and privilege to express my heartily thanks and deep sense
of gratitude towards my guide, Prof. R. Pahurkar, for his sterling efforts, amicable
assistance, and inspiration in all phases of the project work toward the path of completion.
I am grateful to Piaggio Vehicles Pvt. Ltd., Baramati for giving me the permission for
the project work, and availing me their facilities. I am indebted to Mr. S. S. Sawant (Service
Manager) and Mr. K. Kenche (HR Manager) for their prompt assistance and guidance
during the course of my project work.
I am grateful to S. P. Enterprises, Baramati for giving me the permission for the
project work, and availing me their facilities. I am indebted to Mr. P. Wabale (Chief
Manager) and Mr. N. Bankar (Head Sales Executive) for their prompt assistance and
guidance during the course of my project work.
I also take this opportunity to express my sincere thanks toward all the members from
Piaggio Vehicles Pvt. Ltd., Baramati for sparing their valuable time especially while clearing
my vague concepts in fields of their expertise.
I am thankful to Dr. B. V. Sangvikar, HOD, Department of Management Sciences,
for his encouragement. I am extending my thanks to all those persons who have helped me,
directly or indirectly, in completing the project work.
I hope that I have been successful in my endeavor. Discrepancies, mistakes, if any, are
solely mine.
Sameer V Mahajan
MBA++ Marketing
PUMBA
The automotive industry is at the centre of India’s new global dynamics. PIAGGIO
VEHICLES PRIVATE LIMITED (PVPL) is a division of PIAGGIO GROUP, having a
Piaggio’s product range covers three wheelers and light commercial vehicles. Piaggio
Vehicles Pvt. Ltd. Baramati wants to shift from being process centered to more customer
centered. The unit has good track record with excellent customer retention and customer
satisfaction. The management felt the need to find out real picture.
The body of the project report takes a micro level approach, using each step of the
marketing research process. The main source of analyzing the data is through questionnaires.
A thorough analysis has been done in research methodology part to find the advantages and
disadvantages of the company. A complete analysis of variance has been done to find the
kind of satisfaction PVPL’s Service Stations provides to their customers. The best part of this
project report is the analysis and interpretation of the various services provided by Service
Station. This part directly shows whether the customers are satisfied with the products and
services of PVPL and criticizes the ill part of the company.
• Forming Customers Friend Cell (CFC) in each village which would comprise of
the existing customers itself and providing them necessary training to check the
maintenance aspects of the vehicle, informing them about the servicing schedules
etc. This cell would be the representative of the dealer in the village.
• Conducting Seminars and social events yearly. This will improve customer
involvement.
Many more suggestions were given to the management. These few recommendations
will be implemented from this year. At the last part I wrap up the project with suggestion and
recommendations to enhance the future growth and prospects of the company.
• Acknowledgement
• Executive summary
1. Introduction
2. Industry profile
a. Three wheeler industry
b. Analysis of competitors
c. Growth prospect and key drivers
d. Environmental and safety concern
3. Company profile
a. Mission
b. Vision
c. Piaggio Vehicles Pvt. Ltd. Baramati
d. S. P. Enterprises Baramati
e. Future plans
f. Product profile
4. Research methodology
a. Problem definition
b. Objectives
c. Scope of study
d. Research design
e. Sampling
f. Data collection
g. Limitations of study
5. Data analysis
6. Findings
7. Recommendations
8. Conclusion
• Questionnaire
• Biblography
LIST OF FIGURES
CUSTOMER SATISFACTION
AUTOMOBILE INDUSTRY
India is emerging as a source of high value and advanced quality engineering products
and services for multinational companies. India is set to emerge not only as a large domestic
market for automotive manufacturers, but also as a crucial link in the global automotive
chain. Among other industries, the automotive industry in India is understood to be the most
dynamic. It has been experiencing strong growth rates after de-licensing of the industry in
1991, when major economic reforms took place in India.
The Indian auto industry has the potential to emerge as one of the largest in the world.
Some remarkable milestones of the Indian automobile industry…..
• The largest manufacturer and second largest market of two-wheeler in the world
• The largest three-wheeler market in the world.
• The fourth-largest commercial vehicle market in the world.
The post 90s era was the era of liberalization and weakening of restrictive measures.
The government went on an overdrive to support the industry and all FDI regulations and
licensing was abolished. 100% FDI was allowed in the automobile industry and the excise
duty was also considerably reduced to its current level of 10% on three wheelers. These
factors combined with the rising fuel prices, the increasing dispensable incomes of
households, easy access to finance, etc. have led to three wheeler industry becoming the
backbone of the automobile industry in India.
The three wheelers have successfully helped to overcome the dearth of jobs in the
country. Numerous people could be seen driving auto-rickshaws on the roads of cities like
Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and many more. Due to their simple
construction and limited amount of investment the three wheelers as a mode of conveyance
and commercial mechanism has gained popularity. What's more, their maintenance is also
quite simple. Bajaj Auto has dominated the three wheeler market in the country for years.
Several other companies like Piaggio Vehicles and Mahindra & Mahindra have made a late
foray into this field. An overview of the current automobile market indicates that the
tremendous demand of three wheelers in India and abroad has also allured several other
automobile manufacturers like Honda India and TVS Motor to start producing the three
wheelers.
India is the largest three wheelers market in the world. Three-wheelers are light
vehicles also known as auto-rickshaws that are mostly used as small taxis, pick-up vans and
delivery vans for short distances in India. They are driven by two stroke or four stroke
engines on petrol, CNG or Liquefied Petroleum Gas (LPG). There are few manufacturers of
this type of vehicle, but the three-wheeler segment has witnessed strong growth rates of 9 per
cent CAGR over the past decade.
Three-wheeler sales in India touched a new record of 0.4 million in 2006–07. The
launch of four-wheel, sub-1-tonne vehicles has resulted in a segmental shift from three-
wheelers. The proportion of three-wheeler goods carriers in overall sales has doubled,
indicating the increased need for a low-cost, last mile transportation system. The less-than-
3.5 tonne segment in goods accounted for 82 per cent of sales and the less-than-four seater
segment in passenger versions accounted for 97 per cent of sales.
In the past year the sales of the automobile segment has taken a setback and the three
wheeler segment has not proved to be any exception. The three wheeler segment has suffered
a setback of over 5% during the past fiscal year but there have been signs of recovery in the
current year.
The export of automobiles from India has been constantly growing and with the
slowdown in the domestic market, the major companies are focusing on exporting much more
to increase their profit margins.
COMPETITORS
The three wheelers market is been dominated by Bajaj Auto and Piaggio Vehicles.
The company started producing scooters in the year 1961 and followed three-wheelers
production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their
scooters and three-wheelers are being sold with the brand name “BAJAJ”.
Today, the company has become a market leader with annual production in excess of
1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has
started offering products in all segments (mopeds, scooters, motorcycles, three wheelers).
The growth witnessed by the Indian three wheelers industry indicates the growing
demand for low cost personal transportation solutions amongst the 300 million Indian middle
The increasing demand for three wheelers will need to be managed to address issues
relating to overcrowding of roads. Another problem is the insufficient infrastructure for
inspection to ensure adherence to emission norms. As the industry grows, it is important to
regulate the sale of used two wheelers in a more organized manner for which a mechanism
needs to be evolved. Unregulated sale of three wheelers, especially the rural areas, are likely
to create issues related to emissions and safety of vehicles.
PROFILE
The Piaggio Group based in Pontedera, Italy has been a world leader in the two
wheeler and Commercial Vehicles industries for over sixty years. The Group encompasses
seven brands producing scooters and motorcycles. As the fourth largest producer of scooters
and motorcycles in the world, Piaggio produces more than 600,000 vehicles annually, with 5
Research and development centers, more than 6,700 employees and operations in over 50
countries. The group operates in the two-wheeler sector manufacturing products under the
brands namely Piaggio, Vespa, Gillera, Derbi, Aprilia, Scarabeo Moto guzzi. Vehicles
manufactured are sold in over 50 countries. Two three and four wheelers are all distributed
through their own sales networks, comprising over 11,000 independent operators in the
European main and secondary networks, 250 exclusive dealers in India and 300 dealers in the
USA, as well as the distribution network of Piaggio importers in other countries.
The Group operates in the three and four wheelers sector, manufacturing products
under the Piaggio, Ape, Quargo and Porter brands. The Piaggio Group light commercial
vehicles stand out for their compact dimensions, high load bearing capacity and superb
handling. The Piaggio brand image is one of vehicles that are safe, stylish, robust and with
cutting-edge technology, able to meet the most diverse urban mobility requirements.
The Piaggio Group has always been committed to safety, quality, environmental
issues and the well-being of its employees and partners. In other words, it is committed to
being socially accountable for its operations.
Mission
Vision
To be the no. 1 and the most profitable global player with world class quality and
technology leadership in the light commercial vehicle category offering transportation
solutions for specific customer needs. To be perceived as a unique, high -impact, fast-
response, innovative and growth oriented company which is known around the world for its
unmatched level of excellence.
Piaggio Vehicles Private Limited (PVPL) in India is a 100% subsidiary of Piaggio &
C. Spa of Italy, a world major in two, three and four wheeled motorized vehicles. It
revolutionized the two and three wheeler business in India. Piaggio’s target in India of
achieving a turnover of $ 1 billion by 2010 is well on the road to fulfillment. PVPL
commenced its Indian operations in 1999 with introduction to “ape'” brand of diesel Light
Transportation vehicles.
PVPL has pioneered the 3-wheeler goods transportation in India and has achieved and
sustained a leadership status in the cargo segment. Piaggio India is now recognized not just as
a leader in its class, but also as the gold standard in fuel efficiency, load carrying capacity and
lowest operating costs.
Piaggio has invented 3-wheeler in year 1947 and ever since company has pioneered
the technology all across the globe. The latest entrant in the product range is a sub one-ton
four wheeler "ape truk", which has been successfully launched in various states across India.
The access to Piaggio’s immaculate and rigorous R&D has played a role of a key driver to
our success in India. The R&D backup in India has played a role of backbone in introducing
state-of-the-art of product with latest technology. The company is headquartered at Pune and
its state-of-the-art manufacturing facilities at Baramati, Maharashtra. PVPL employs around
1700 people, has a widespread network with 7 regional offices, 14 branch offices and more
than 600 sales and service outlets across the country.
Piaggio's ape' already has more than 6,00,000 happy ape’ customers in India today.
The company achieved sales of over 1,55,000 vehicles in the year 2007. PVPL is currently
the market leader in the state-of-the-art three-wheeler diesel category in India, with a market
share of 55%.
S. P. Enterprise, Baramati
It has persuaded hard to be one of the most valued organizations for retailing auto
motive and allied products with professional approach and ethical business practices. It gives
priority to attain customer delight through effective implementation of systems and
procedures and development of infrastructure which will ensure quality. The core values
are…..
• Concern for customers
• Relationship with trade partners
• Compliance of systems and procedures
• Reverence for fellow employees
• Commitment to our principles
• Respect to wards work
Vital Statistics
Sales : Over 1000 vehicles sold during F07-08.
Service : Over 500 vehicles serviced per month.
Infrastructure : Own sales and service outlets in 5 locations.
Performance : Sales growth of over around 25% over F07-08.
Italian auto maker Piaggio is planning to manufacture two wheelers in India in the
coming years, as part of the company's growth plans for Asia. The maker of the famed Vespa
scooter would also be developing four wheelers product range and manufacture new diesel
engines. Detailing the company's strategic plan for the 2009-12 period, Piaggio today said it
aims to create the conditions for strong growth in Asia. As part of the plan, the firm would
strengthen its direct industrial presence and also increase "the offering of two-wheel vehicles
to be produced in India as well and commercial vehicles, backed by the development of
distribution structures, organization, and human resources". Piaggio said it would start the
production of new 1000 and 1200 cc diesel and turbo diesel engines. "These engines are to be
the fundamental feature of the Group's expanded range of commercial vehicles, produced and
marketed in both Europe and Asia, which will lead to growth and segmentation of the Ape,
Quargo, and Porter lines," the statement noted. The company would develop "four-wheel
product range, with new Ape Mini Truk, new Ape Truk Maxi Cargo...," in India. The
company produces three and four wheelers at the Baramati plant in Maharastra.
Piaggio India truly represents a seamless integration of the best of skills, technology,
design research and customer care with Indian resources, infrastructure, intelligent
manpower, marketing and financial skills, and most importantly, a deep understanding of the
Indian market and customer needs. Piaggio’s concern for the environment is known across
the globe.
The company’s product range includes half tonner cargo vehicles (Pick Up and
Delivery van), and 3 seater passenger vehicles in various fuel variants like Diesel, CNG, and
LPG. The latest entrant in the product range is a sub one-ton four wheeler ape truk, which has
been successfully launched in various states across India. All vehicles are engineered for
higher fuel efficiency, rugged performance and outstanding load carrying capability; these
vehicles are extremely environment friendly and conform to the most stringent emission
norms.
• High body
• Pick-up (Basic Model)
• Delivery van
• Bakery Shop
• Cylinder Carrier
• Hydraulic Hopper
• Florist van
• Ice Cream Parlour
• Hydraulic Jetter
• Water tanker
• Dumper Placer
• Soft Drink Carrier
• Chicken Carrier
• High Economy
• Low Operating Cost
• Reliable & rugged
• Total Care
• Looks and Style
Piaggio ape three wheeler is the market leader in light commercial vehicles (LCV)
segment. Launched 2 years after the World renowned Piaggio Vespa in 1948, the
introduction of this new 3-wheeled vehicle helped commercial activities pick up in-post war
Italy. Unique and unrivalled, Ape has remained faithful to itself, even through so many
models and never-ending changes. Today, its unique, quirky shape is built around a semi-
monocoque frame that uses a single load-bearing chassis in sheet-steel. The steel body houses
either one or two seats. The body comes in number of styles including Van and Pick up and
can be customized to meet a variety of commercial needs, from catering to urban refuse
collection. The Ape is also a fantastic outdoor advertising media solution.
APE TRUK
With its sleek Italian styling and contemporary ergonomically design, the Ape TRUK
is yet another winner from the house of Piaggio – the force behind India’s largest selling
diesel 3 wheeler: Ape. True to its international pedigree: the Ape TRUK is a state-of-the-art
sub one-tonne 4-wheeler that combines a whole basket of outstanding features – excellent
stability, the highest payload, the convenience of 3-side openable panels, higher ground
clearance, all-terrain capability and outstanding fuel efficiency. Add to this its stylish Italian
looks and the highly comfortable car-like interiors, and you get a clear picture of what the
Ape TRUK has to offer.
Key Benefits
PVPL and SP Enterprises also want to increase their customer base. And hence a
survey of prospective customers was also done to find out the important aspects to attract the
prospective customer. Also to find out the deficiencies in product because of which the
customers are not preferring company’s product over rival’s products. So it was thought to
interview the non customers also to find out the level of customer satisfaction.
OBJECTIVES:
Primary Objectives
• To ascertain the level of satisfaction among the Piaggio vehicle owners (three
wheelers) with respect to services provided by authorized service stations.
• To find the loopholes in the after sales services to the customers.
• To evaluate critically market acceptance of Piaggio Group (PVPL) products.
• To analyze the price sensitivity in various spares.
• To find out the customer’s perception on different attributes through questionnaires.
Secondary Objectives
• Customer perception towards the products of PVPL.
• Advice to change some attributes of Service Station.
• To understand the potential market.
• The ways to retain the existing customers and improving customer base of three
wheelers to service station.
The scope of the commercial part is very wide. The geographical area covered is
Baramati. The time period assigned was complete two months. The authorized service station
covered for the survey was S. P. Enterprise, Baramati.
Basically there was a questionnaire to which the respondent has to respond.
RESEARCH DESIGN:
The data collection is done by use of surveys methods and hence descriptive type of
research is used for analysis of the data. The study was descriptive in nature because it
depicts characteristics or functions of the market. It describes the number, distribution and
socio-economic characteristics of potential customers for the product.
SAMPLING:
A sample is a part of the population. The sample should be representative of the
population and the information obtained must be reliable. In any survey where reliability is
desired, the error and variance have to be controlled, measured and interpreted.
The type of population selected is the customers of service station of Piaggio Vehicles
Pvt. Ltd. named S. P. Enterprise at Baramati. Baramati is a taluka of Pune district of
Maharashtra state.
Sample Size : 100 Existing Customers.
Sampling Technique : Non probability judgment sampling
The statistical tools used while analyzing the data are as follows…..
• Tables
• Bar charts
• figures
DATA COLLECTION:
Department of Management Sciences (PUMBA) Page 28
Primary Data
The primary data was collected by asking the consumers who come to the authorized
service stations for the servicing of their commercial vehicles and also the new customers of
the commercial vehicles to fill up the questionnaires by me. It is a very important part of the
project as it is only through the properly filled up questionnaires that I can reach to any
conclusion from the data which I got from the questionnaires. The methods used for
collecting primary data are as follows…
a) Observation
b) Interview
c) Telephonic Interview
d) Questionnaires
Interview:
Interview is one of the chief means of collecting data in research process. Interview
may be defined as a systematic conversion initiated for a specific purpose and focus on
certain planned content areas. It is not a simple two way conversion between an investigator
and an informant.
Surveys:
There are three main types of surveys, depending upon the method of data gathering
used: personal interview surveys, telephone surveys and mail surveys. The main advantages
of survey are wider distribution, lesser distribution bias and thoughtful responses.
The primary data under processing is collected from both direct filling the
questionnaires and through telephone interviews also.
Secondary Data
The data once collected by one person become the secondary data if used by another
person. Secondary data are the information which is attained indirectly. They are the data
collected by someone else and which has already passed through statistical process. The
various sources of secondary data are as follows…..
a) Bibliography
b) Directory
c) Newspaper
DATA ANALYSIS
For the convenience of the reader question are also given above the charts for better
understanding. Many valuable inputs were received in the course of the project. They are
presented as findings after relevant chart.
• When was the last time your Piaggio vehicle was serviced with a Piaggio dealer
authorized service station?
Most of the customers have come for service in PVPL dealer service station in the
month of April i.e. 32% last time and the least the customers came for service is in the year
2008 i.e. only 18%. According to the customer survey many customers told that they have to
It clearly indicates that customers regularly comes to dealer and are satisfied with the
performance of dealer.
1 Satisfied 60
2 Dissatisfied 40
1 Paid service 30
2 Free service 36
3 Paid repair 14
4 Warranty 20
Table 6: Types of work at workshop
1 Yes 70
2 No 30
• If your vehicle was under warranty was it immediately accepted or it took time
for a decision to be taken?
Sr. No. Warranty immediately accepted Number of customers
1 Yes 40
2 No 60
1 Never 18
• Did you interact with the service advisor? How was the understanding of the
problem?
Sr. No. Interaction with service advisor Number of customers
1 Yes 70
2 No 30
1 Yes 78
2 No 22
1 Yes 71
• Did workshop give you proper estimate of cost and time on time?
Sr. No. Estimation of cost and time Number of customers
1 Yes 65
2 No 35
• How do you find the competence of mechanic in the workshop? Do they know
their job well?
Sr. No. Competence of mechanic Number of customers
1 Satisfied 82
2 Dissatisfied 18
• Are you happy with the infrastructure and cleanliness at the service station?
Sr. No. Cleanliness Number of customers
2 No 66
• Are you satisfied with the availability and cost of spare parts at S. P.
Enterprises?
Sr. No. Spare parts Number of customers
1 Satisfied 73
2 Dissatisfied 37
• Did you go back to the workshop for the same problem shortly afterwards?
Sr. No. Spare parts Number of customers
1 Yes 42
2 No 58
FINDINGS
But S. P. Enterprises does not give emphasis on the promotional aspect. The
proximity is the factor which is creating problem for PVPL to increase customer base through
this dealership. Many times the information about various types and aspects of after sale
services are not provided to the customers timely and in proper manner. The registration and
documentation of a new vehicle is bit complicated and time consuming process.
Overall performance of the dealership is very good. It is way ahead than its
competitors. But still the professional aspect is missing. And hence the PVPL is not able to
increase the customer base as it should, even if the performance of product line is great. The
sales executives rarely visit the villages under the service area of the dealership. There is
room for improvements. The dealership is not performing like the brand name ‘Piaggio Ape’
suggests. If the suggestions given will be implemented then it would really be an customer
oriented approach.
RECOMMENDATIONS
• Set up Customers Friends Cell (CFC) in each village comprising of two senior
customers who are the users of product for more than 5 years and two young
customers who can devote their time to help other customers.
CONCLUSION
Customer Satisfaction plays pivotal role in any company’s improvement and its the
ultimate goal of any organization. It is great a learning experience to work with Piaggio
Vehicles Pvt. Ltd. I would like to conclude that three wheelers and light commercial vehicles
have great market potential.
Department of Management Sciences (PUMBA) Page 41
During the project I learned about three wheeler products of Piaggio Vehicles Pvt.
Ltd. & the customers view about the product performance. I also came to know different
views of the customers about the services provided by the service work stations.
I also suggested some of my views to the customers and also to the S. P. Enterprise,
Baramati (dealer) how they can make their service much better. I understood the customer’s
problems, found the solutions with the service advisor and explained to them. From the
survey I found that some customers are dissatisfied with the product quality and some are
dissatisfied with the services provided by the dealer.
As the study concentrates to find the satisfaction level of customers of PVPL three
wheelers vehicle and from the findings it can be concluded that almost every area needs
improvement whether it is product quality, services or spares provided by the dealer
workshop. If these areas are improved systematically there is no doubt that customer will
receive more satisfaction and the future of this company will be glorious in the field of
automobile. At last I would say that I enjoyed every moment working with Piaggio Vehicles
Pvt. Ltd.
QUESTIONNAIRE
• Customer Name :
• Address :
• Telephone number :
• Vehicle Details :
• How many PVPL vehicle have you used in the past 5 years?
• Are you satisfied with the overall performance?
• Will you suggest others to buy Piaggio vehicles?
• When was the last time your Piaggio vehicle was serviced with a PVPL dealer or
authorized service station?
• Where did you take it for service? (Name of the dealer)
• How was the overall experience?
• Did you have to make an advance booking?
• If your vehicle was under warranty was it immediately accepted or it took time
for a decision to be taken?
• When the vehicle arrived at the service station, how long did it take for the
vehicle to be taken into the workshop and open job card?
• Were the spare parts available in sufficient quantity and of proper quality?