Preferences of Consumers On VESPA
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Preferences of Consumers On VESPA...
Description
1.INTRODUCTION
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. "Customer satisfaction" is the important statement of the problem in this project. Measuring customer satisfaction
Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business.
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2.THEORETICAL BACKGROUND OF STUDY Market The term market may be considered as a convenient meeting place where buyers and sellers gather together for the exchange of goods and services. Market means a group of people having unmet wants, purchasing power to make their demand effective and the will to spend their income to fulfill those wants. Marketing Marketing is a comprehensive term and it includes all resources and set of activities necessary to direct and facilitate the flow of goods and services form the producer to the consumer through the process of distribution. Businessmen regards marketing as a management function to plan promote and deliver products to the clients or customers. Marketing Management Marketing management represents an important functional area of business management efforts for the flow of goods and services from the producer to the consumers. It looks after the marketing system of the enterprise. It has to plan and develop the product on the basis of known customer demand. Marketing Mix Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. There are four elements or variables that make a marketing mix, they are: 1. Decisions on product or service. 2. Decisions on promotion 3. Decisions on price 4. Decesion on Distribution
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Marketing Research Marketing research is the systematic gathering, recording and analyzing of the data about problems connected to the marketing of goods and services i.e. problems relating to product, price, promotion and distribution of the 4p’s of the marketing mix.Marketing research is concerned with all those factors, which have a direct impact upon the marketing of products and services. Marketing research has grown along with the expanded role of marketing as the focus for the business decision-making. Consumer A person who purchase or has the capacity to purchase the goods of service often for sale by the marketing firm in order to satisfy personal need and desires. Perception Perception is the sensing of stimuli external to the individual organism the act or process of comprehending the world in which the individual exists. Perception has been defined by social psychologists as the “Complex process” by which people select organize and interpret sensory stimulation in to a meaningful and coherent picture of the work.
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3.RESEARCH METHODOLOGY Survey research is the systematic gathering of information from respondents for the purpose of understanding and/or predicting some aspects of the behaviour of the population of interest. It is the most common method of collecting primary data for marketing decisions.Survey research is concerned with administration of questionnaires (interviewing). The survey research must be concerned with sampling, questionnaire design, questionnaire administration and data analysis. The administration of questionnaire to an individual or group of individuals is called an interview. A questionnaire is simply a formalized set of questions for eliciting information. As such, its function is measurement andit represents the most common form of measurement in marketing research. The report has been prepared as per the information obtained from two sources. They are: Primary data:Primary data consists of original information for the specific purpose at hand. It is first hand information for the direct users of respondents. The tools used to collect the data may vary and can be collected through various methods like questionnaire, personal interview Secondary data:Secondary data is the data which is already been collected and assembled. This data is available with the companies or firms and it can be collected from newspapers, periodicals, magazines, websites etc. Primary data: 1. Structured questionnaire Secondary data: 1. Data from various magazines especially bike magazines. 2. Internet. Sampling plan : Data collected has been analyzed and interpreted by percentage system and presented in pie charts. Sampling frame : Customers visiting showrooms for servicing their Vespa motorcycles. Sampling unit: Motorcycles owners esp. Piaggio Vespa motorcycle owners
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Desired sample size: A sample size of 100 motorcycle owners was specified in Nanded city. Research was undertaken in Vaishnavi motors,Nanded.
Objectives of the study 1. The objective of the study is “Measure customer satisfaction towards Vespa”. 2. To measure customer satisfaction of Piaggio Vespa scooter owners. 3. To know the tastes and preferences of people of when it comes to Piaggio Scooters. 4. To find the reasons for buying vespa motorcycle. 5. To know the showroom people co-operation & availaiblity of acessories.
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4. INDUSTRY PROFILE Two-Wheeler industry is one of the largest industries in the automobile sector of global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well¬directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and the domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML.
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Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in two-‐wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-‐ ¬wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition.
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5.COMPANY PROFILE
Founded in 1884,Piaggio & C. s.p.a is today one of the leading manufacturers of 2-wheeler and small commercial vehicles in the world. With its registered office in Pontedera(pisa), Piaggio is the market leader in Europe and has expanded its operations to 24 countries, including a major presence in Asian Markets. The product range includes Scooters, mopeds and motorcycles starting from 50 to 1200cc under the piaggio, Vespa, Gileria, Aprilia, Moto Guzzi, Derbi and Scarabeo brands.The 3 and 4 wheeled light transportation vehicles are marketed under the Ape, Porter and Quargo brands. Piaggio Vehicles Private Limited (PVPL), the pioneer of 3-wheeler goods transportation in India, is today the no. 1 in its class. By setting global standards in vehicle performance and customer service, it has revolutionized the 3 wheeler cargo segment in India. Today the company offers a range of passenger and cargo vehicles for many customized applications. Piaggio vehicles are engineered for higher fuel efficiency, rugged performance and outstanding load carrying capability. Living up to Piaggio’s core philosophy, all its vehicles conform to the most stringent emission norms. PVPL has now firmly established its position as an undisputed leader in the diesel 3w market. This impressive growth trajectory would not be possible without PVPL’s advanced R&D center, modern manufacturing unit and stellar network. In the past 10 years, over 1.5 million Indian transporters have trusted apé for total dependability, reliability and profitability. Today, lakhs of tonnes of cargo and millions of passengers are transported daily across the country on the apé. Piaggio India has successfully introduced state-of-the-art products with world class technology in India. Its reputation is built on its efficient network spread across India, providing worldclass customer care. .
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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.
To become market leader in the light transportation vehicle segment, and achieve the status of world-class company which manufactures & markets a wide range of high quality product to the total satisfaction of customer in the domestic and overseas market by ensuring: *Low cost of manufacture *High profiable growth *Sustainable domestic & global competition *Maximised stake holder’s satisfaction and pride *Business Ethics
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Corporate Social Responsibility
In order to improve and facilitate public hygiene, PVPL has donated apé 3-wheeler Special Purpose Vehicles for Garbage Collection & Transportation. With a view to encourage greater participation from students as well as institutions, some of our initiatives in this realm are: • PVPL sponsored the National Level Science Exhibition, organized by Vidya Pratisthan, Vidya Nagari, MIDC, Baramati, attracted illustrious visitors such as the then Hon. President of India, Mr. APJ Abdul Kalam. • PVPL has sponsored the ‘Interschool Science Quiz Competition’, an event organized by Vidya Pratisthan’s D. Ed College (English & Marathi medium), MIDC, Baramati. • PVPL has donated Personal Computers to schools at Baramati. • As a move to promote disciplined driving, PVPL has sponsored one of the Traffic Signals at Baramati. • PVPL has also sponsored the Baton Rally at Baramati for Commonwealth Youth Games.
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PRODUCT PROFILE VESPA
PVPL is proud to launch the iconic Vespa in India. Vespa is a unique example of immortal design that has gone beyond a mere commuting product to become a part of social history and way of life. The Vespa is an ageless brand that is now a symbol of a distinctive lifestyle in market after market around the world. Invented by Piaggio in 1946 as the world's first scooter, the Vespa rose rapidly in popularity to become a loved and revered emblem of 'made in Italy' and 'a new, unique way of enjoying mobility'. The Vespa is present in more than 100 countries with over 17 million units being sold since its inception. With its Indian foray, Piaggio intends to create an exclusive, premium segment for the brand. The Vespa will be positioned as a lifestyle, iconic, timeless and ageless product that goes beyond mobility and leverages its heritage and unique values. Vespa in India will meet the aspirational needs of the fashion, style and brand conscious individuals who would like to be a breed apart. Predominantly aimed all over the world at a premium segment of consumers who are looking to own nothing but the best. The Vespa production plant opened today is the third factory set up by the Piaggio Group in Baramati, a city in the Pune district of the State of Maharashtra. The area is home to the manufacturing complex of Piaggio Vehicles Private Ltd., a wholly owned Piaggio Group subsidiary which already produces three-wheel goods and passenger vehicles (and is the market leader in India, with annul sales of more than 220,000 vehicles) and, in an adjoining facility, scooter engines for the Vespa and diesel and turbodiesel engines for the commercial vehicle ranges produced by Piaggio in India and in Italy, in Pontedera. With the opening of the Vespa production plant, the Piaggio Group industrial complex in Baramati now provides jobs for approximately 3,000 workers.
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The new Vespa factory is located on an area of more than 150,000 square metres, including a covered surface area of 32,000 square metres. It handles the full Vespa machining cycle, from welding of the monocoques to varnishing and final assembly. The initial production capacity of the plant, which was built in just 14 months, is 150,000 scooters/year; capacity will be raised to 300,000 during 2013 as part of the Piaggio group industrial and commercial program. Marketing of the Vespa, at 66,600 Indian rupees (equivalent to approximately 1,000 euro/1,260 USD at the current exchange rates), is currently beginning in India’s 35 largest cities, through a distribution network already comprising 50 exclusive dealers, on the basis of a coordinated image system dedicated entirely to the Vespa brand.
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What it costs Ex-showroom
Rs 66,000 (Maharashtra)
Engine Fuel
Petrol
Installation
Inclined from vertical
Type
125cc Single-cylinder, 3valve air-cooled, fourstroke
Compression ratio
10:1
Power
10.06bhp at 7500rpm
Torque
1.08kgm at 6000rpm
Power to weight
88.2bhp per tonne
Transmission Type
CVT
Dimensions Length
1770mm
Width
690mm
Height
1140mm
Wheel base
1290mm
Chassis & Body Weight
114kg
Wheels
3-spoke alloy
Tyres
90x100x10 inches (Front and rear)
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MODELS:
LX125
The Vespa LX 125 is a scooter currently made by Piaggio. The LX 125 uses the same frame as the LX 50 but features a 125 cc engine capable of a listed maximum speed of 59 mph (95 km/h). The LX 125, like all modern Vespa scooters features a 4-stroke single overhead camshaft and steel frame construction. Vespa claims 70–75 mpgUS (3.4–3.1 L/100 km; 84–90 mpg-) fuel efficiency. The LX models feature an automatic torque slave transmission and front disc and rear drum brakes.
VX125
The Vespa VX 125 is the second premium scooter from Piaggio. Cosmetically and mechanically, the scooter is similar to the LX 125 but there are few improvements; most important of them is the 200mm front disc brake setup. The Vespa VX 125 features the MRF Zapper tubeless tyres and the instrument cluster has been updated to give a fresh look. The Vespa VX is powered by the same 125cc single-cylinder air cooled engine which powers its lower version. The engine develops 10.06bhp of power at 7500 rpm which is transmitted to the rear wheel via a CVT transmission
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6. SWOT ANALYSIS
Strength: * Brand itself speaks * Pick up * World wide market * Potential Parent Brand
Weakness: * Price * Reluctant to change * No scope for semi urban places * Lack of celebrity marketing * Limited Models Opportunities: * Introducing more models * Expansion Of territory in semi urban areas
Threats: *Compeitators * Political Factors * Licensing/Legal Factors
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7.ANALYSIS OF DATA COLLECTED Statement Of Problem To understand and identify what the consumer feels or perceives about Piaggio motor bikes. This will help the marketer to identify which all are the factors that a consumer looks in to when he selects a particular bike. And also explains how a consumer selects and interprets the qualities of bike that Piaggio offers. Objectives of the study 1. The objective of the study is “Measure customer satisfaction towards Vespa”. 2. To measure customer satisfaction of Piaggio Vespa scooter owners. 3. To know the tastes and preferences of people of when it comes to Piaggio Scooters. 4. To find the reasons for buying vespa motorcycle.
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1.The age group in which respondents lie under: Age Group
Respondents
18-25
30
26-35
33
36-50
29
50<
08
Respondents
18-‐25 26-‐35 36-‐50 50<
Interpretation / Analysis: Most of the respondents lie in the age group of 18-25 i.e 30%.Followed by 33% of which lies under the group of 26-35, 29% of the respondents are from the age group of 36-50 and 08% of people were lying under age group of 50 & above.
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2. Respondents Work Status/Employment Status:
WORK STATUS
Respondents
Professional
33
Business
12
Student
27
Others
28
Repondents
Professional Business Student Others
Interpretation / Analysis: In the above graph we can see the work status in which 33 % are professionals, 12% are from business category,12% are students and remaining 28% aquired by others( Non-Professionals).
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3.Respondents Source of Awareness with regard to Piaggio Vespa Scooter:
Source Of Awareness
Respondents
Tv Advertsement
60
Newspaper
22
Friends & Peer
14
Radio
04
Respondents
Tv add Newspaper Friends & Peer Radio
Interpretation/Analysis: In the above graph it is shown that 60% of people come to know about vespa through Tv advertisement,22% of people come to know through newspaper followed by Friends & peer i.e, 14% and remaining 04% through Radio.
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4.Respondents Satisfaction towards price of vespa
Price Satisfaction
Respondents
Satisfactory
45
Unsatisfactory
55
Respondents %
Yes No
Interpretation/Analysis: In the above graph it is shown that 45% of respondents are satisfied towards vespa scooter price and remaining 55% of people are unsatisfied.
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5. Respondents rating towards Bodystyle, Design & Look of Vespa Scooter
Ratings
Respondents
Excellent
24
Good
36
Average
30
Poor
20
Respondents %
Excellent Good Average Poor
Interpretation/Analysis: In the above graph it is shown that 36% of people rated Good,30% of people rated it as average and 24% of people rated as Excellent and remaining 20% of people rated it as Poor.
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6. Respondents Satisfaction Towards Driving comfort of Vespa?
Driving Comfort
Respondents
Excellent
36
Good
28
Average
22
Poor
14
Respondents
Excellent Good Average Poor
Interpretation/Analysis: In the above graph it is showed that 36% of people expressed it as Excellent,28% of people said it as good,22% of people said it as average,& remaining 14% of people rated it as poor.
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7.Respondents Preference towards colour of vespa?
Colour Preference
Respondents
White
28
Yellow
38
Orange
14
Black
20
Respondents %
White Yellow Orange Black
Interpretation/Analysis: In the above graph it is showed that 38% of respondents prefer yellow colour,28% of people prefer white,20% of people prefer for black & remaining 14% for Orange.
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8.Stisfaction towards pickup and Performance?
Pickup & Performance
No.of Respondents
Satisfactory
78
Unsatisfactory
22
Respondents
SaYsfied UnsaYsfied
Interpretation/Analysis: In the above graph it is showed that 78% of people are satisfied towards pickup & performance and 22 % people are unsatisfied.
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9.Response Towards the Quality of Vespa scooter Quality
Respondents
Excellent
26
Good
40
Average
20
Poor
14
Respondents
Exccellent Good Average Poor
Interpretaion/Analysis: With respect to quality in the above graph it is showed that 40% of people rated it as good,26% of people rated it as Excellent,20% of people rated it as Average and 14 % people rated it as Poor.
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10.Response towards various attributes Of Vespa?
Attributes
Respondents
Breaking
30
Safety
26
Storage
44
Respondents
Breaking Safety Storage
Interpretation/Analysis: In the above graph it is showed that 44% of people like its storage capacity, 26% towards its safety & 30% people like its breaking system.
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11. Response towards Features of Vespa
Technical Features
Respondents
Style & Design
22
Acceleration
36
Riding Comfort
28
Mileage
14
Respondents
Style & Design AcceleraYon Riding comfort Mileage
Interpretation/Analysis: In the above graph it is demonstrated that 36% of respondents choose its acceleration,28% people choose its riding comfort,22%people prefer to style & mileage and remaining 14% people reffered it for mileage.
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12. Response towards co-operation by showroom people?
Co-operation
Respondents
Satisfactory
88
Unsatisfactory
12
Respondents
SaYsfactory UnsaYsfactory
Interpretation/Analysis: In the above graph it is demonstrated that 88% of people are satisfied with the co-operation towards sowroom people & 12% people are not satisfied.
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13.Response towards availability of accessories and spare parts
Availaiblity
Respondents
Satisfacctory
60
Unsatisfactory
40
Respondents
SaYsfactory UnsaYsfactory
Interpretation/Analysis: In the above graph it is showed that 60% respondents are satisfied towards availability of spare parts & accessories & 40% people are unsatisfied.
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14. Response towards survivallence of Vespa in existing market?
Opinion On survivalence
Respondents
Yes
78
No
22
Respondents
Yes No
Interpretation/Analysis: In the above graph it is demonstrated that 78% of people say positively regarding survivalence of the vehicle in market & remaining 22% of people reacted negatively.
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15.Response Towards Recommendation Of Vespa To others:
Recommendation
Respondents
YES
82
NO
18
Respondents
Yes No
Interpretation/Analysis: In the above graph 82% of people respond positively toeards recommending the scooter to others and remaining 18% reacted negatively.
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8.FINDINGS, SUGGESTIONS & CONCLUSION Findings
• • • • • • •
More focus was towards Urban Area. Relaunch of outdated model lead to dis-intrest in youth to purchase. It succeded in attracting professional but failed to reach business people Lot of dis-satisfaction towards price as because of price skimming strategy used by Vespa. Storage & Pickup considered to be major attributes of the vehicle . Mileage acted as a loophole in sales of a scooter. Lack of service centres in semi-urban places.
Suggestions
. Need to expand the territory for semi urban areas. • • • •
Modification or Updation generates intrest in youth. Need to improve the boot space of the vehicle so that it acts major advantage to business people. Need to reduce the price as to beat the compeitation. Improvement in Mileage
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CONCLUSION During the live project we found that so many people and officials use vespa bikes because of pickup. Some of the office going people and students(Female) prefer vespa because of its easy handling too. People preference to vespa scooters is rapidly increasing because of Pickup and satisfactory after-sale service.
LIMITATIONS OF THE STUDY: 1. The responses given by the respondents may not be true. 2. The respondents may be careless in responding to the questionnaire. 3. The respondents may be illiterate
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Learning Experience
This study made us to understand the demand and factors which affect the buying preference of a consumer. They always take care of customer taste out of the 4 ‘P’s of marketing price, product plays very important role though promotion doesn’t play that much important role because in our survey we found that the least factor which affects the consumer to vespa bikes was promotion, but another fact is that consumers preference is always quality and prices of the bike. This company is majorly influenced by price factor as in this field too many competitors are ready to occupy the market share as consumer taste and preference vary according to various factor so by understanding the consumer need we must fix the competitive price. The pie chart creates a visual model, which people can use when comparing different data sets. Using different colors, pie charts divide information into sections resembling pie slices which is accompanied by a number of percentages, and its size changes accordingly. Graphs and charts condense large amounts of information into easy-to-understand formats that clearly and effectively communicate important points. In the near future consumers desires more and more bikes to be introduced in the market and at the same time they should maintain quality because most of the consumers prefer Vespa scooter by quality .
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ANNEXURE
QUESTIONNAIRE Hello, I am Sushma Kondalwar From ITM Nanded, undergone into a marketing research on ‘CUSTOMER PERCEPTION TOWARDS PIAGGIO VESPA SCOOTERS’ in Nanded city for the partial fulfillment of BBA degree. I would request you to co operate with below questionnaire which will help me in further analyzing the data for project completion and the details which you provided will be kept confidential. Thank you Sushma Kondalwar Reg No: 1.Name : 2.Age group : a)18-‐25 b)26-‐35 c)36-‐50 d)50< 3.Gender : a)Male b)Female 4.Work area: a)Professional b)Business c)Student d)Others 5.How do you come to know about Vespa Scooter? a)TV Advertisement b)Newspaper c)Friends & peer d)Radio 6.Does the price of vespa is satisfactory? a)Yes b)No
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7.How will you rate body style, design and look of vespa Scooter? a)Excellent b)Good c)Average d)Poor 8.What do you feel about the driving comfort with regard to vespa scooter? a)Excellent b)Good c)Average d)Poor 9.Which colour of vespa scooter you prefer the most? a) White b)Yellow c)Orange d)Black 10. Are you satisfied with the pickup and performance of the vehicle? a)Satisfied b)Unsatisfied 11.What do you feel about the quality of vespa scooter? a)Excellent b)Good c)Average d)Poor 12.What you feel about the design of vespa scooter? a)Excellent b)Good c)Average d)Poor
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13.How do you feel about the (Attributes) breaking system, safety features and storage space of vespa scooter?
EXCELLENT GOOD
AVERAGE
POOR
Breaking
Safety
Storage
14.What feature attracted you to purchase vespa scooter? a)Style & Design b)Acceleration & Pickup c)Riding comfort D)Mileage 15.How was the Co-‐operation from the show room people with respect to post sale service of Vespa? a)Satisfactory b)Unsatisfactory 16.Do you think with the current features, performance and the price, will Vespa be able to compete with other brand scooters in the market? a)Yes b)No 17. Do you recommend others to buy Vespa scooter? a)Yes b)No (specify the reason) 18.Your Overall Rating on Vespa Scooter is: a)Excellent b)Good c)Average d)Poor.
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REFERENCE 1. www.VespaIndia.com 2. www.Overdrive.com 3.Mcgraw hill publications
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