A project report on customer satisfaction about tempo traveler at bajaj tempo limited BY BABASAB PATIL

“Customer satisfaction about Tempo Traveler” at BajajTempo Limited
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Company Profile
Bajaj Tempo Ltd.
Since its modest beginning in 1929, a small hire purchase finance company has
grown and diversified into various areas.
These include automobiles, hire purchase, Real estate, Building Management and
Marketing agencies for prestigious business houses such as Bajaj, Firodia's and Maruti.
The key feature of Tempo's management philosophy is keeping itself abreast of the
new and emerging technologies and adopting them to deliver high quality and high
performance vehicles to the end customers.
For this purpose CAD/CAM technologies were introduced in the year 1991,
especially in R & D, Production Engineering & Tool manufacturing. It facilitated accurate
and speedy product design and development.
Bajaj Tempo Ltd. (automobiles) has its branch offices at Bangalore, Cochin, Mumbai,
Mangalore, Hubli, Belgaum, Delhi and other places. At Bangalore its dealers are Khivraj
Motors who are customer – oriented and who assist in creating a strong network & building
good customer relationship.
Bajaj Tempo Limited (BTL) the flagship Company of Firodia group, has posted an
impressive result for the in the recent year.
It can be seen that in the financial year Mar. 2003, there was a sharp increase in its
not profit. The company has reported a 35% increase in the net sales to Rs. 699.5 crore. Net
profit has jumped to Rs. 32.1 crore from Rs.1.6 crore in the previous year. This is a
significant achievement for the company that turned around in 2002 after 3 years of booking
losses.

The improvement in performance has been achieved by focusing on reduction in
material and operating expenses as well as by an increase in sales volume.
BTL has recently completed its corporate restructuring exercise in consultation with a
management consultant firm to enhance the company's competitive posture and operating
effluence.
The key factors contributing to the substantial across the board growth are the thrust
on strengthening their existing sales channel and aggressive promotional activities, backed
with product innovation and diversification.
The company operates in 4 segments in automobiles.
 Utility vehicles (Trax)
 LCVs
 Three – wheelers with branch like Trax.
 Tempo Traveller, Minidor and (Balwan) Tractors
For BTL three-wheeler carriers are its biggest contributors interns of unit sales at
73% of automobiles sales (Excluding Tractors) of which goods carriers contribute 55% and
passenger carriers 18%. The goods transportation scene in India – particularly for Local
delivery transportation of goods undergoing a metamorphosis with a shift in tonnage and
pattern of vehicles employed for local short distance transportation of goods.
The growth rate for the three-wheeler goods carrier category was 47% while BTL
bettered this with a 50% growth in this segment.
The company is currently trading at Rs.156.9. The scrip had reached 153.8 after the
result was announced but again it reached 156.9.

BTL, the leading automobile player, has records significant Sales by registering a
sales turn around of Rs. 850 crs for the financial year 1st Apr. 2003 – 31st Mar. 2003.
The company has announced a new warranty, scheme, offering 3 years or three-lakh
kilometers cover, on most of its four-wheeled models. However, Tempo is aggressively
undertaking segment focused promotional activities particularly in rural areas.

I. Upsurge in Performance
The Company's product lines comprising of Light Commercial Vehicles, Utility
Vehicles, Agricultural Tractors and Three-Wheeled vehicles were well received in the market
during the year 2002-03. Sales Growth and Increase in the Market Share, was registered in all
product categories. Greater buoyancy in the economy, improved investment climate for
vehicles, as also effective product positioning and promotional policies by the Company
combined, to give a substantial fillip to the Company's performance for the year under review.
After several years of book losses, already during the year 2001-02 turnaround was achieved,
the year under review saw continued improvement in the Company's performance, resulting
in substantial improvement both in the top line and in the bottom line performance.
II OPTIMISTIC CLIMATE FOR AUTO INDUSTRY
The Indian Automobile Industry seems poised for a paradigm shift. Due to the
inherent strength of the economy – which has continued to grow over the last decade at over 5
per cent annum, the significant investments in the traditional automotive industry made
during the previous decade are now digested and settled. The major players in the Indian
industrial world have also undertaken substantial re-structuring and re-organisation
programmes, resulting in strengthening the operational efficiency of the industrial economy.
For the first time since independence, a very substantial investment initiative is now under
implementation for building a new road system in India. Taking all of the above into account
the Indian Automobile Industry has reason to be optimistic for the next decade.
III PRODUCTS
(a) Agricultural Tractors: The Company further extended its range of
Agricultural Tractors, by introducing variants designed to suit the exacting requirements of
the young, increasingly educated and forward looking farmers, for achieving enhanced
productivity. The product approval process for agricultural tractors however continues to
languish in the old world 'control regime'. The Certification and Government approval process
is tedious, to say the least. Subject to delays imposed by these aspects, the Company is now
fully poised to cover the entire spectrum of tractor requirement in the market by fine-tuning
specific product propositions – for each geographic area and crop application requirement.

The distribution and promotional policies of the Company are being further
improved, to achieve enhanced penetration for the company's products in selected important
market locations.
(b) Three Wheelers: The trend set by the 'Minidor Pickup' of offering the 'Small
Trader' and the 'Rural Business' – a cost effective transportation mode – has caught on. There
is a substantial increase in the market for Three-wheelers of the type the Company
manufacturers. This has attracted the covetous eyes of the competition, and several new
entrants are expected to make similar product offerings in this category. The Company is
continuing its efforts to introduce further improved product variants and new product
offerings, in order to give the customer a better deal. Strong efforts are being made, both on
the Product Development front and on the Market Development front, to consolidate the
Company's position in this important and evolving segment of goods transportation.
The Six-Seater Minidor Diesel Auto rickshaw which when tested as per the Bharat
Stage I emission method actually meets the Bharat Stage II norms (as notified for passenger
cars). As a mode of transport it offers to the customer an exceptionally economic and
convenient proposition. Though very well accepted in the market both by the operator and the
customer, it continues to be plagued by the regulatory issues of permits, licences, routes, rates
approval, etc. and by organised opposition from City or State-owned public transport services,
and such unions and vested interests.
(c) Light Commercial Vehicles: The Company's Light Commercial Vehicle
offerings, particularly the Tempo Traveller in the Euro II version, has seen significant
improvement in market penetration. It is expected that this trend will continue during the
current year as well.
(d) Utility Vehicles: On the Utility Vehicles front, the Company's new offerings
of highly fuel efficient and rugged 'Pickup Trucks' and large 'Personnel Carriers' have been
extremely well received. The Company registered significant improvement in both the
number of vehicles sold, and also in the market share of Utility Vehicles.

All the products manufactured by your Company are actually 'working vehicles', and are
expected to 'earn an income' for the purchaser. The acid test for success is whether we are
able to offer a 'Better Business Proposition' to our customer. Each vehicle we sell actually
results in the creation of a small new business for the buyer. It may well be said that we are
more in the business of 'selling small businesses', rather than of 'selling vehicles'.
IV. BUSINESS OUTLOOK FOR 2003-2004
The Company has set ambitious targets for the sale of products, in each of its product
lines – such as Tractors, Three-Wheelers, Light Commercial Vehicles and Utility Vehicles.
The performance during the first quarter of 2003-04 has been very satisfactory. Given
the strength of the Company's products in the market today, and considering the
improvements being put in place to the distribution network along with improved consumer
finance support for the Company's products, it is expected that the sale of Light Commercial
Vehicles, Utility Vehicles and Three-Wheelers will continue to prosper.
The Agricultural Tractors market should benefit from an improved monsoon during
the year 2003-04. The Company is well positioned to take advantage of a likely upswing, in
the tractor market in the rural economy.
V. CORPORATE RESTRUCTURING
The new and highly focused organisation that has been evolved over the last few
years has enabled the Company to consolidate its operations, to improve its competitive
posture and to deliver successful results.
The newly constituted Board of Management, and the several Business Management
Councils, are functioning in a focused and purposeful manner, thus enhancing the Company's
operational efficiency and sharpening its product development and engineering focus.
The Balance Score Card based assessment, of the performance of each Division /
Plant / Function, has now further evolved to enable the Company to structure a reward

programme for key executives, based on 'Key Performance Indicators' – for their areas of
responsibility. This incentivisation at the senior levels of the Company's management staff,
complements the extensive culture of incentives for the blue collared workers practised for
over two decades, in all of the Company's Plants. The Company's workforces, as well as its
officers are therefore now incentivised. A transition to an Entrepreneurial Mindset is thus
hoped to be achieved over a period of time through this effort – to enable the participation and
the commitment of the employees – to be the driving force for future success.
The Company has undertaken, during the current year, to carry out a major
Organisation Development Exercise, involving several hundred senior officers, with a view to
bring about the necessary transformation, to realise a productive and competitive mindset,
commensurate with the country's newly emerging business culture. These courses are being
run at Navalveerayatan – an Institution dedicated to the memory of the Company's Founder,
Shri Navalmalji Firodia. The courses are organised in association with the IIM (Ahmedabad).
VI. TECHNOLOGY
Over the last several years, the Company achieved, systematic modernisation and
improvement of its plants. Widespread CNC machining culture, high standard of engineering
in new product development, and in new process development, which has now stabilised. The
Company therefore hopes to leverage its enhanced manufacturing efficiency – both in terms
of product quality and product cost control. Important additions to infrastructure and Plants,
such as a new CED Paint Shop for tractor component stand a Chassis dynamometer for
Emission Testing of new vehicles underdevelopment, to cite a few, have been commissioned
during the year under review.
The Company has taken effective steps to acquire technology for 'Common Rail'
Diesel Engines. This cutting edge technology in diesel engines will enable the Company to
carry its range of Light Commercial and Utility Vehicles forward over the next decade,
meeting global standards of emission norms spanning Euro III and Euro IV levels. This
important step, to enhance the Company's product technology, capability, has triggered in the
Company a number of projects, for adapting these modern engines along with suitable drive
trains to the Company's range of Light Commercial Vehicles and Utility Vehicles.

VII. RISKS AND CONCERNS
The regulatory framework for 'Passenger Transportation' in India, whether for
operating large buses, taxicabs or small auto rickshaws, continues to remain fraught with
contradictions, regional blocks and crass protectionism harking back to the Heydays of the
License Permit Raj. This atmosphere is not conducive to the introduction of consumer
oriented efficient transport solutions. The Government, hope fully, will succeed in bringing
about a modern and liberalised regime in this important aspect of 'Passenger transportation',
comparable with the success achieved in de-regulating the Industrial Policy Regime. The
regulatory regime for 'Goods Transportation', in comparison, already stands on a substantially
more business-like footing.
Technology changes are taking places al around, in Emission Standards, in
Manufacturing Processes and in Fuel Efficiency Benchmarks. The Company is taking strong
steps to be able to successfully meet these challenges. Smooth and timely introduction of new
technology Products and Processes will bean important factor determining the success of your
Company, as well as that of any other company in the Automotive Industry, in the future.
VIII. FINANCIAL PERFORMANCE / OPERATIONAL PERFORMANCE
During the year 2002-03, the Company registered impressive financial result in
comparison to the previous year. The turnover rose by 31 per cent. Material costs were under
stronger control dipping to 53.98 per cent from 54.6 per cent in the previous year. The
employee costs could be controlled to less than 10 per cent compared to over 11 per cent in
the previous year. The interest cost decreased by 1.17 per cent. On the other hand, the
Company had to contend with higher Publicity, Advertisement and Sales Promotion costs,
which went up by 3.15 per cent compared to the previous year. Internationally, the proportion
of the 'sales and marketing costs' to the 'total costs' is significantly higher than has been the
experience of Indian companies in the past. In the years to come, given the competitive
environment now prevailing in India, the costs of sales promotion and of publicity and
advertisements are bound to rise.
The profit before tax rose to 4.12 per cent of the turnover, whereas the profit after tax
was 3.77 per cent compared to 0.24 per cent during the previous year.

The total secured and unsecured borrowings by the Company could be contained
within Rs. 61.42 crores in spite of substantial increase in turnover and corresponding increase
in book debts and stocks.
IX. INTERNAL CONTROL SYSTEMS
The Company has a Three level control mechanism as described below – along with
adequate internal control systems, commensurate with the size nature of its business.
As independent Internal Audit Department is headed by an officer of the Divisional
Manager level and is supported by adequate number of executives and staff to carry out the
internal audit procedures relating to all expenses, and on procurement of assets and capital
goods.
The Company has also appointed external Management Auditors for both its plants at
Ajurdi and at Pithampur, to conduct audits to ensure system compliance in respect of material
accounting and other related areas. These auditors submit their reports to the Management of
the Company on monthly basis.
The Statutory Auditors of the Company form the apex level of Audit.
X. CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis describing the Company's
objectives, projections, estimates, and expectations may be forward looking statements.
Actual results could differ materially from those expressed or implied. Important factors that
could make a difference to the Company's operations include, among others, economic
conditions affecting demand/supply and price conditions in markets in which the Company
operates, changes in the Government regulations, tax laws and other statutes and incidental
factors.

A Technology Driven Player
A key feature of Tempo's management philosophy is keeping itself abreast of the new
and emerging technologies and adopting them to deliver high quality and high performance
vehicles to end customers. A very important initiative taken in the year 1991 in this regard
was the introduction of CAD/CAM Technologies in R & D. Production Engineering and Tool
Manufacturing to facilitate accurate and speedy product design and development.
The Story so far....
Initially intergraph software for 3D CAD/CAM and AutoCAD for 2D design activity was
introduced. ANSYS software for computer aided analysis (CAE) activity was soon added.
Our superb 3-Wheeler Minidor was the first highly successful product designed & developed
using CAD/CAM/CAE Technology. The Minidor body was fully designed in 3D. All other
design functions were simultaneously executed in 2D.
In tool design for Minidor, the method plan for press tools was prepared in 3D so that tool
manufacturing could be finished easily using CAM software. Other tool design functions
were executed in 2D.
In the year 1995, the Company decided to develop a new metal top body for the Trax, to
introduce the new Excel Series of LCV's and to enter in the new business line of Tractors.
Accordingly new CAD/CAM/CAE software was obtained.
(1) State of art software CATIA for Body Design and Method Plan.
(2) ADAMS software for kinematic and dynamic analysis of system as well as complete
vehicle.
(3) I-DEAS software for pre and post processing to further strengthen finite element analysis.
(4) NCode for measuring stress / strain on components and Data Acquisition System for
giving feed back to analysis group and accelerated testing of components / systems in lab.
(5) High productivity Tebis Software for Computer Aided Manufacturing.

With product life cycles becoming smaller, introduction of latest technologies was imperative
to achieve further reduction of product development time and ramp up time to achieve full
production capacity.
In year 2000, the Company realigned its Product Development mission to – "DO IT RIGHT
THE FIRST TIME" for new products and the following decisions were taken.
(1) All Product Tool Design activities to be brought in 3D environment.
(2) Virtual Prototyping to ensure defect free product by taking care of all manufacturing &
servicing aspects at the design stage.
(3) Single software platform usage.
To ensure the above CATIA software was adopted. The company also introduced Digital
Mock Up (DMU) software for virtual prototyping with facilities to check clearance / clash in
the assemblies.
Hence now all new product design and development activities such as vehicle engineering,
engine, transmission, body and complete tool design activities are being implemented in 3D
environment. Not forgetting the human aspect, to ensure smooth technology transition more
than 80 engineers were specially trained for working in 3D design & Development
environment.
The Future....
In the pipeline are introduction of new technologies in order to cover the complete Product
Lifecycle Management (PLM).
(1) Product Data Management (PDM): To manage design information under dynamic
conditions with a strong change Management System.
(2) Virtual Factory: To simulate every aspect of manufacturing at design stage so that ramp
up time to achieve full production capacity is reduced dramatically.
To sum up, Tempo fully understands the need for utilising new technologies to produce
high quality cost effective products to meet customer requirements – which is quite
evident from the above initiatives taken in this direction!!

About Products:
Bajaj Tempo Ltd's four distinct products can be classified as
 3 wheelers
 Multiutility vehicles (passenger & goods carriers)
 Light commercial vehicles and
 Tractors
Same of these products are given below (4 wheelers)
Tempo Traveller – Passenger carrier
Tempo Traveller – Delivery Van
Tempo Traveller – Ambulance.
Temp excel 4 – Pickup Truck with pay load 3.5 tons and 3.6 tons
Tempo excel – 3 Pick up Truck
Tempo Trax (cruiser)
Tempo Trax (Indo) – All rounder.
Tempo Trax – For rough roads.
Tempo Trax (Gama) – Taxi
Tempo Trax (Ambulance) – Medicare vehicle
Tempo Trax (Kargo) – Good carrier )
Tempo Trax (Chellenger) – for rough roads
Tempo Trax – Transit bus.
Minidor display van – Demo van
Minidor – Pick-up Van
Tempo Tractors (Balwan) For Agri Purpose,

About TT in detail:
Tempo Traveller is a top class transport vehicles with most modern engineering
concepts originally it is designed and produced by Mercedece Benz, Germany, as the "T-1
Transporter", and licensed to Tempo. It is today manufactured in India as the "Tempo
Traveller".
Features of TT (Passenger carrier)
1 OM – 616 diesel Engine - High fuel efficiency Silent &
refined performance.
2 5-speed, synchromesh, by 1-18/5 Gear box : Smooth & Silent transmission
of power with minimum
friction loss
3 Strong Monocoque body : Roomy interior & low body
weight.
4 Electro –phonetically Painted : Excellent corrosion protection.
5 Mileage : 9 to 10 km/ltr
6 Carrying Capacity : 14 + 1
Tempo Traveller is available with Euro – II in It runs very smooth and provides
comfortable journey. Euro II and I are the emission norms for regulating vehicular emissions
promoted in Europe. These norms are expressed inter of the weight of the pollutants such as
carbon monoxide, Hydrocarbons, oxides of nitrogen and particulate matters emitted /
kilometer of vehicle run.
For instance, there are particular emission levels for petrol driven and diesel drive
vehicles.
In Tempo Traveller fuel –efficient diesel with 5-speed synchromesh gear box with
overdrive that delivers higher fuel efficiency and fatigue free driving on long journey.

Tempo Traveller (Delivery Van)
It has a spacious cargo box with the dimension 3300 x 1680 x 1830 and fuel tank
capacity of 70 ltrs and carrying capacity of 15 and it provide safe and comfortable
transportation facility.
Tempo Traveler (Ambulance)
It has a Monocoque body to provide car like comfortable ride. The interior are roomy
and elegant with high roof facilities for easy movement of me staff and doctors. The engine is
with noise and vibration bevels and it has high acceleration and runs very smooth. It has a
small turning circle for easy handling of vehicle in small and crowded areas. It comes with
proven medical accessories confirming to Internet specifications. It is available with Bharath
Stage – II (Euro – II) and CNG engine.

TECHNICAL SPECIFICATION
ENGINE
Bore/Stoke (mm.) : 90.9 X 92.4 mm.
Displacement (cc.) : 2399 cc.
Max. Output : 43.2 kW (ISO) @ 4000 RPM
Max. Torque : 130 Nm @ 1800-2000 RPM
Air filter : Oil Bath type
Oil filter : By pass flow type paper filter
CLUTCH
Type
: Single, dry friction, diaphragm, pot type
TRANSMISSION
Model : G1-18/5, 5 speed
No. of gears : 5 forward, 1 reverse
Gear Ratios : I – 6.157, II - 3.148, III - 1.743, IV - 1.278, V - 1, Rev. - 5.347
Front Axle : Dead Rigid
Axle Ratio : 4.9 : 1
STEERING
Type : Worm & Roller (Power Steering Optional)

FRAME
Frame : Varying box section monocoque Chassis
SUSPENSION
Front : Semi Elliptic leaf springs with hydraulic telescopic shock
absorbers. Anti roll bar in front.
Rear : Semi Elliptic leaf springs with hydraulic telescopic shock
absorbers.
BRAKES
Service Brakes : Dual circuit, hydraulic, vacuum assisted
Front : Disc brake
Rear : Drum brake
WHEELS & TYRES
Wheels & Tyres : Four & one spare
Size : 215 R 14, 10 PR / 7.00 R 15, 10 PR
ELECTRICAL SYSTEM
Battery : Lead acid 75 Ah.
Alternator (Max output) : 55 Amps. at 13.5 volts & 6000 RPM
Starter : 12 V., 2.3 kw.

FUEL TANK CAPACITY(LTS.)
Fuel Tank Capacity (lts.) : 70 Ltrs.
DIMENSIONS(mm.)
Wheel base : 3050 / 3350
Overall length : 4755 / 5235
Overhang front : 720
Overhang rear : 985 / 1165.
Track front : 1600
WEIGHT (kg.)
Max. Permissible FAW : 1400 / 1490
Max. Permissible RAW : 1400 / 2000
Max. Permissible GVW : 2800 / 3490
CAPACITIES
Fuel Tank : 70 Ltrs
TRANSMISSION
Type : Gear lock synchromesh on forward gear
ENGINE
Model : OM 616* (D-98) Diesel
Oil sump capacity (Lts.) : 6.5 Lts.

TRANSMISSION
Rear Axle : Live Rigid
ELECTRICAL SYSTEM
System voltage (volts) : 12 volts
DIMENSIONS (mm.)
Overall width : 1975
SEATING CAPACITY
Seating Capacity : 1 Patient + 8 attendants + Driver
ENGINE
Type : 4 Cylinder, 4 Stroke, Vertical, Inline, IDI
CLUTCH
Outside Dia. (mm.) : 228 mm.
STEERING
Turning Radius (mtrs.) : 6 to 6.5 mtrs. Depending upon wheel base
BRAKES
Parking brake : Mechanical on rear wheels
DIMENSIONS (mm.)
Min. Ground clearence : 190
ENGINE
Compression Ratio : 21:1

Major Milestones:
15th
Aug 1957 : Mr. Firodia signed a collaboration with Vidal and Sohn Tempo werk Gmbtt
for phased manufacturing of Tempo 3 – wheeler & manufacturing was started
at Goregaon, Bombay.
1961 : Expanding the business.
1964 : The plant was transferred to Pune (Akrudi)
Nov. 1964 : Commenced the manufacture of Tempo Viking 4 – wheeled Trucks .
1975 : Production capacity was increased to 12,000 vehicles / year.
1982 : Collaborated with the Daimler Benz company for producing Mercedece
Benz Om 616 engine under license for fitting on its line of vehciles.
1987 : Started a new plant at Pithampur in Madhya Pradesh with Daimler Benz for
manufacturing Tempo Traveller.
1996 : CAD/CAM Technology was introduced which was used for Minidor.
1997 : Expanded this plant to house a new press shop.
1997 : The company conceived a Technologically superior tractor, The Ox and OX
45.
1999 : Tempo introduced a 35 HP version of tractor. i.e. OX 35 and LCVs of
EXCEL range.
2000 : Pithampur plant and its mercedece Engine facilities received the prestigious
ISO 900 certification for quality systems.
2002-03 : Three – Wheeled vehicles were received in the market.
2003-04 : Economic times Awared Bajaj Tempo Ltd as the best emerging company.
2004 : Technical collaboration with Maschinen fabrik Augsharg Numberg (MAN)

About Tempo's Collaboration with MAN:
BTL has announced its exclusive Technical collaboration with the German based
world Kaderz in truck manufacturer 'MAN' (Maschinefabrik Ausburg Numberg). The detailed
investment plan, budget and capital sourcing options were analysed in Dec. 2003 by Mr.
Abhay Firodia, Chairman and MD of BTL. It is expected to roll out their new range of
medium and heavy commercial vehicles in the market by 2005.
The new commercial vehicles will feature the latest international standard technology
sourced from the world-class truck manufactures.
BTL is going to set up its own sales and service support network in the key locations.
A separate marketing team is expected to look after this new product range of vehicles. BTL
is looking to establish a long-term relationship to work together with MAN to create a base
for substantial export of auto components.

BODs
The Management Board.
 Mr. Abhay N. Firodia
Chairman and Managing Director
 Mr. S. S. Marathe
Director
 Dr. V. A. Pai Panandikar
Director
 Mr. Bharath V. Patel
Director
 Mrs. Anita Ramachandran
Director
 Dr. Rolf Bacher
Director
 Mr. S. N. Inamdar
Director
 Dr. V. G. Bhide
Director
 Mr. Vinay Kothari
Director
 Mr. Sudhir Mehta
Director
 Mr. M. Venkataiah
Director
 Mr. S. A. Gundaha
Director
 Mr. M. G. Chopda
Jt. MD

Organisational Chart
Production Marketing Finance Personnel
Department Department Department Department
Bangalore Mangalore Hubli
Chief Managing Director
for
Divisional Manager
(Mr. Rajesh and Miss Suvarna)
State Level business Manager
(Mr. G. S. Hegde)
(Mr. Shashidhar R. Naik)
Regional Sales executives
(Mr. Ravi Upadhyay ) (Mr. Mukhesh) (Mr. Hareesh)

Project Idea
After purchasing the product, consumer will experience different level of satisfaction,
which is to be monitored, as "a satisfied customer is best advertisement for the marketers."
Objectives of the study:
1. To find out the customer satisfaction about Tempo Traveller.
2. To make out whether any improvements are required in Tempo Traveller.
3. To know the perception of customers regarding the dealers.
4. To know the reasons for availing TT only.
Area of Survey :
The area selected for survey is Bangalore. It includes different areas of Bangalore,
like (white field, electronic city, Kalasiplayam, infantry Rd, T.S.P. Rd, Lalbhag Fort Rd,
BTM Layout, Indira Nagar, Anand Rao circle etc.)
Customers are : (Sample units)
Software companies, call centres, BPO centres, Tours and Travels.
Data Collection Methodology:
Methodology is the systematic approach to the given problem. It is the way how we
go for the collection of the data. Therefore the better way of collecting data is more important
rather than data collected.
The data collection methodology followed by me is as follows.
Primary Data Collection:
It is the first hand information, which will be more accurate & will be current data.

1. Formal way of collecting the data:
Different questions were priory prepared by me and these questions vary from customer
to customer. Formal meetings were arranged with the different transportation incharges
and managers of the software companies call centres & Tours Travels owners which gave
more detailed, systematic and reliable information.
2. Informal way:
In informal way there was a fluent flow of information for example the conversation
between me and the vehicles owners and drivers.
3. About Questionnaire:
It has been found that mostly close-ended questions are widely used which will be it can
provide hard data for decision-making and resource allocations. Open-end questions can
provide new ideas about the existing product or it may give new product ideas.
The following aspects are taken into consideration while constructing the
questionnaire:
1. Does the questionnaire ask customers the right question?
2. Will customer feedback obtained often enough to be operationally useful?
3. Are the questions in sequence?
4. Are physical characteristics of the questionnaire well constructed to avoid confusion and
minimise recording errors? etc.
It gives the information regarding price, mileage, carrying capacity & other aspects of
the vehicle.
Secondary data collection: -
Secondary data is the data, which is already collected by some one else and will help
for future reference. There are different sources of Secondary data.

The present project includes the data collected through following different sources.
1. Auto Magazines
2. Company manuals
3. News papers
4. Company Reports
5. Web-sites

Scope of the Study:
The visit to different software companies, call centres and tours & Travels gave better
insights into some of the factors which determine the customer satisfaction about Tempo
Traveller and the attributes they consider while purchasing the same.
The study mainly revealed the following aspects.
1. Temp Traveller is playing a an important role in facilitating transportation of
employees of the companies and call centres as it is a comfortable vehicle with
carrying capacity of 14 + 1.
2. Tempo-Traveller is , relatively fast moving vehicle in urbanized cities like Bangalore
rather than in rural areas.
3. Tempo Traveller has relatively lesser competition, with Toyato Qualis and Swaraj
Mazda being other major players.
4. Recently these passenger carriers have shown 9% growth.
5. Even though the major focus is on the urbanised city, it is also taking more
promotional activities particularly in rural and sub-urban areas or segments.
Thus scope of this study is concerned in the customer satisfaction and the attributes
that affect the buying decision about Tempo Traveller.
The study provides relevant information to the company and the dealers, through
which they can take corrective actions on the aspects about which more importance has to be
given.
Limitations of the Study
1. As for as human beings are concerned, every opinion and reasons differ from person
to person and time to time. So the data collected may subject to variations from time
to time.
2. Because of the time constraint a few major software companies, call centres and
Tours & Travels are visited.

As customer expectations and experiences include more of psychological aspects the
survey made during a particular time period will give the information about the customers
during that particular time period. In order to be up-to-date in understanding the
satisfaction periodic surveys are necessary.

Problem Statement:
The Marketing problem and Research problem has to be clearly stated. The marketing
problem deals with the decisions that managers must make. Research problem deals with
providing information that will help management make better decisions.
 In this project the marketing problem is to finding the reasons for decreasing market
share through customer satisfaction survey.
 The research problem is to find out the causes, through survey of, what are the views of
customers about the product and how satisfied are they and what improvements they
require for about the product.
As per the situation analysis there are many automobile units emerging every year in
the industry with new ideas which is creating a competitive environment in the industry viz.
Qualis is emerging as a big buck & a major competitive product for Tempo Traveller
similarly Swaraj Mazda is another big competitive player for Tempo Traveller. Thus
competition and regulations restricting plying of these vehicles are some of the major issues,
which affects the market share.

About Customer's Satisfaction and Post-Purchase behaviour.
Customer's satisfaction
Customer satisfaction is central to the marketing concept for business and non-profit
organisation. Any successful organisation has the customer as its focus, because a satisfied
customer is one's best advertisement.
It is said that no amount of advertising, leaflets, banners, hoarding, wall paintings,
newspapers and magazines insertions, radio jingles, television advertisement films – have the
credibility which a satisfied customer has.
The marketing discipline in undergoing fresh reappraisal in the light of the vast
global, technological, economic and social challenges facing companies and countries of
present days. Marketing at its best is about value creation and raising the world’s living
standards. Today's winning companies are those who succeed most in satisfying, indeed
delighting their target customers.
Satisfaction is a function of perceived performance and expectations.
If the performance matches the expectations, the customer is satisfied.
If the performance falls short of expectations, the customer is dissatisfied.
If the performance exceeds expectations the customer is highly satisfied or delighted.

Customer's Satisfaction defined.
The reason for a business firm to come into being is the existence of a consumer who
has unfulfilled needs and wants.
Tempo has the advantage of having the widest product range in all market segments
in which it operates, putting itself in a unique position of providing not just products, but the
best economic solutions to their customers thus fulfilling the unfulfilled needs.
Tempo keeps itself abreast of the new and emerging technologies and adopting them
to deliver high quality and high performance vehicles to their end customers.
Customer satisfaction has been conceptualised in several ways. It consists of
expectations, performance interactions, pleasure / displeasure, and the evaluation of the
benefits of consumption.
Consumer's satisfaction is the result of confirmation of expectations.
Tempo has been focussing on the improvement and Excellency in the processes,
which it uses to satisfy their customers. To accomplish, this it has focused on improving
customer – orientation and value chain integration. Thus meeting the expectation of the
customers.

Components of customer satisfaction / dissatisfaction
Purchase Process:
It refers to the actions of the customers in buying the product. Could he find products
easily? Did he have to travel for to buy? Whether proper quantities were available? Was
sufficient information available? Obviously, for a manufacture that exercises strong control
over his distribution channels, any measurement of consumer's satisfaction should include this
component.
Tempo has always been focussing on Network Expansion.
Decision:
It refers to the extent to which the customer thinks about correctness of his decision
with regard to satisfaction. Apart from the product of the process, the customers might have
regret about one component, which would affect other components.
He may feel: "Yes, I am happy with the product, but I see now that I cannot afford it".
Functional Attributes:
It is an area in which marketing has developed much expertise through product usage
studies. It includes listing and rating of all attributes which affect the fitness of the product to
the task and for the customers viz. price, construction, quality, performance etc.
Aesthetic attributes : -
They have included functional attributes that belong to a different motivational set
and needs, which require. Separate measurement, for product categories such as home
furnishings, clothing, artworks etc. they may be most important variables affecting
satisfaction.
Psychological Attributes :

They may be in equal importance to functional attributes and often account for a great
part of total customer's satisfaction. Although, they are considerably more difficult to plan for
control or measure.
Service Attributes:
They refer especially to post sale service available to and required by the purchaser
and would vary in the importance depending on the product viz., automotive and applies.
Environmental Attributes:
These are components of consumer's satisfaction, which are growing in importance.
Customers concern over throwaway bottles, or increased energy consumption that may
potentially affect overall satisfaction with some products.

Optimal Stimulation Theory
This theory postulates that each individual seeks an optimal stimulation level. If level
of stimulus falls below optimal, the person will seek additional environmental variety to
increase stimulation; when the level of stimulation is above this optimum, the individual will
strive to reduce it. Different people, of course, will have different levels of stimulation that are
optimal for them. These levels of need can be measured, and then used to plan marketing
strategy.
People might get different degrees of satisfaction from the same acquisition
The fusion of the two concepts of optimal stimulation and satisfaction may reveal a
new insight that a person's optimal stimulation level can moderate the process of effort
evaluation, and may result in different amounts of perceived satisfaction for individuals
expending identical amounts of efforts. This proposition may suggest that efforts are flexible
and individual yardstick. In marketing, researchers have attempted to develop projective and
questionnaire measures of the need for stimulation.
Interaction Between Efforts Satisfaction Theory and Optimal Stimulation Theory
Since individuals vary in their Optimal Stimulation, the effort expanded by an
individual to attain a goal or acquire a product is relative, and is based upon the background
of that individual's stimulation level. In other words, the Optimal Stimulation of an individual
can be looked upon as a mediating variable against which the expended effort is measured,
and it will help us to predict the amount of satisfaction that an individual is likely to acquire
as a result of expending a certain amount of effort. A high sensation seeker may get an
elevated level of satisfaction from purchasing a product that requires a substantial amount of
assembly, whereas a low sensation seeker would require pre-assembly in order to feel the
same level of satisfaction. The Optimal Stimulation of an individual would modify the
acquired satisfaction level, leading to less satisfaction for the same amount of expended effort
in the case of the high sensation seekers compared with low sensation seekers. Such
knowledge is of importance to marketer because, if evidence is found to support the
contention that effort and Optimal Stimulation are interactive factors in the customer
evaluation process, this would mean that both must be considered when marketing strategy is

being developed. The bundle of efforts expended by a customer being an integral part of the
customers evaluative process, and hence an resulting product satisfaction, is an important
elements of strategic marketing decision making. Efforts (in shopping, assembly, selection,
availability, and so forth) may have to be consciously altered by the marketer to enhance
customer satisfaction.
Paying a higher price for a product leads to higher evaluation and satisfaction with the
product
An effective market segmentation strategy would thus be based on bundles of efforts
required of the customers since different market segments need and want to expend different
levels of efforts in the purchase and use process.
Market segmentation
Optimal Stimulation may provide a natural basis for segmenting the market into high
and low sensation seekers. High sensation seekers may respond favourably to products,
activities, or services that provide more novelty, risk and excitement. One customer may go
into a "higher-involvement" process when purchasing the same product.
High sensation seekers are more likely than low sensation seekers to be innovators who
tend to purchase new products
The high sensation seekers tend to approach new or unfamiliar products with
openness and littler anxiety, whereas low sensation seekers tend to delay purchase until a
product's success has been established. The high sensation seekers are more likely than low
sensation seekers to be innovators who tend to purchase new products. The high sensation
seekers are more likely to seek information sources or distribution outlets in order to learn
more about an innovation and more intrigued with the prospect of "newness" than are low
sensation seekers.

Pricing Policy:
The price the customer pays for a product is nothing but a form of saved effort
(financial, mental, or physical), and therefore the higher the price, the higher the assumed
customer satisfaction. However, realizing that the yardstick against which the customer
measures depended, effort is relative because of different Optimal Stimulation among
individuals that requires the price maker to reconsider the psychological basis for a pricing
policy.
The distinction between high and low sensation seekers also suggest marketers the need for
separate promotional campaigns.
A high price policy is not necessarily the only avenue to a high evaluation of and
satisfaction with the product. Rather, it suggests that the key to attaining desired customer
evaluation of a product is to create a situation in which the customer is given a choice of
expending various amounts of efforts.
Promotional Appeals
In new product development too one needs to identify mass media that will reach
potential buyers, and to determine the most appropriate appeals to be used in their messages.
The high sensation seekers have a greater tendency toward exposure to mass media to their
areas of interest. It would be more efficient for a marketer to attempt to reach high sensation
seekers through special interest organizations, and special events that would provide a more
effective media strategy than the less specifically targeted media would.
The high sensation seekers are more likely is influenced by promotional appeals
stressing risk and novelty. It suggests the need for separate promotional campaigns. The high
sensation seekers are more likely to react favourably to informative advertising, which
appeals to their curiosity, and would tend to evaluate the merits of the advertised product on
the basis of their own experiences. Low sensation seekers, on the other hand, have fewer
tendencies on their own to evaluate product merits except within the confines of reference
group settings and the presence of a trusted celebrity or expert.

Distribution Policy.
Optimal Stimulation Theory also influences the firm’s distribution policy. It may
suggest that the key to the attainment of customer’s satisfaction is not necessarily
convenience, but rather the creation of a situation in which the customer is given a choice of
expending a variety of amounts of shopping effort.
Use of Optimal Stimulation Theory
Marketers can use optimal stimulation level, where customers are primarily a group
of either high or low sensation, and as a segmentation variable. The marketing mix can also
be changed to reflect the needs of the type of group that primarily represents the target
prospects.
To illustrate, restaurant and bar owners are likely to face a market that is primarily
rather the High Sensation Seekers or the Low Sensation Seekers market.
Many types of business attract both Low Sensation Seekers and High Sensation
Seekers customers, and can benefits by recognizing the difference between these groups and
catering to their respective needs. To illustrate, travel agency, investment firms, and the hotel
industry can be covered in it.
There are four important marketing strategy alternatives that can be developed
by the knowledge of Optimal Stimulation Levels:
(1) Developing a marketing mix for high sensation seekers;
(2) Developing a marketing mix for low sensation seekers;
(3) Creating a marketing mix for those who wish to use business to increase their
stimulation level; and
(4) Creating a marketing mix for those who wish to use your business to reduce their
stimulation level. Marketer who consciously identifies alternatives will have a
significant competitive edge because such a strategy will be more fully based upon
actual human behaviour. Because optimal stimulation is not a widely known
phenomenon, substantial gains are possible if an appropriate marketing strategy is
developed. If this strategy is followed, customers may attain greater satisfaction and
less dissatisfaction from their purchasing experiences.

Process of customers Satisfaction/ Dissatisfaction
Customers form certain expectations prior to the purchase. These expectations may be
about the nature and performance of product, the costs and efforts to be extended before
obtaining the direct product benefits social benefits or costs accruing to the customers as a
result of purchase. Customers may have variety of product performance expectations like
what the customer hopes performance will be in terms of an ideal level, what should be fair
and equitably given to the customers expenditures of the time, and what the customers
expects to actually occur. Once customer purchase and use a product, they may then become
either satisfied or dissatisfied. Several determinants that influence customer’s satisfaction
include demographic variables, personality variables, expectations and other factors. Older
customers have lower expectations and tend to be more satisfied. Higher education tends to be
associated with lower satisfaction.
Disconfirmation of Expectations:
The interaction between expectations and actual product performance produces either
satisfaction or dissatisfaction. There does not appear to be merely a direct relationship
between the level of expectations and level of satisfaction. This modifying variable is known
as disconfirmation of expectations. Such disconfirmation may be of two types. A positive
disconfirmation occurs when what received is better than expected. A negative
disconfirmation occurs when what received is inferior than expected. Thus, any situation in
which customers judgment is proven wrong is a disconfirmation. Confirmation occurs when
the expectations and performance matches each other.
Result of customer’s satisfaction/Dissatisfaction:
The result of satisfaction to the consumer forms the purchase of a product that more
favourable purchase attitude, higher purchase intentions and brand loyalty are likely to be
exhibited. As long as positive reinforcement takes place, the customer will tend to continue to
purchase the same brand. However, customers sometime will not follow these established
patterns, but will purchase differently simply for the sake of novelty. On the other hand, if
customers are dissatisfied, they are likely to exhibit less favourable post-purchase attitudes,
lower or non-existent purchase intensions, brand switching, complaining behaviour and
negative word of mouth.

Managing Customers Satisfaction
The concept of customers’ satisfaction is closely related to what Gandhiji said to
quote, "A customers is the most important visitor on our premise. He is not dependent on us.
We are dependent on him..." we find this long quotation prominently displayed in number of
banks, Government offices, departments, cottage industries and so on. As most of us are
observing, and experiencing that most of Gandhiji's sayings, Indians too ignore this. It is true
fact that each Chief Executive Officer will accept and endorse supremacy of customer’s as the
king, the primacy and intimacy of customers and philosophy of customer’s satisfactions. On
the other hand, we come across very few organisations that will redress customer’s
complaints quickly and efficiently. One finds elaborate processes to verify customer’s
complaints not to solve them but to avoid and minimise them. It also creates a feeling that
customers is an abstract concept yet to be understand as a flesh and blood creature, with needs
and wants, complaints and suggestions. It would be an interesting research to pursue to find
out how many Chief Executive Officers spend how much of an average time meeting their
average customers. Few of them ways to learn about the distinction between minimum service
requirements and value-added services is also to listen to customers.
Customer Loyalty and Consumer's Satisfaction:
Brand loyalty was popular topic in the 1950s and 1960s. The first study on brand
loyalty undertaken by the George Brown entitled "Brand Loyalty: Fact or Fiction"; published
in the "Advertising Age"; June 19, 1952; PP 53 to 55 and June 30, 1952; P. 47-57, identified
the existence of repeat purchase behviour and concluded that most consumers are brand loyal.
Brand loyalty is often referred to as customer loyalty. Consumer’s satisfaction is not the same
thing as customer retention loyalty. Satisfied customers may never return.

Brand Advocate
(Recommends Too Friend)
Repeat Purchase
Satisfaction Complain Switch
Trial Dissatisfaction
Switching costs-opportunities
Lack of information
Risks
Barriers
(to buying your product)
Awareness of product

The Customer loyalty ladder
Customers move up a "loyalty ladder" from trial buyer to client to advocate.
Satisfaction is a required but not necessarily sufficient condition for repeat purchase to occur.
Overtime, customers may reach the top of the ladder and recommend the product to others.
Every time a potential consumer considers purchasing product, the consumer is
confronted with barriers to his decision. Some of the important barriers in buying products
mainly include following:
(a) Switching Costs:
It is the perceived price the consumer pays for changing to another brand or supplier.
By weaving relationships with its consumers, a company can make it inconvenient for
consumers to switch to a competitor.
(b) Perceived Risk :
It is in unknown component of a new purchase. It includes the financial, social and
psychological risks associated with the purchase of a new product or service.
(c) Lack of Information:
It occurs when there is insufficient knowledge about company's product or lack of
other market information that will restrict purchase behaviour.
To be brief, all above barriers, put together can prevent or discourage customers from
changing brands. Helping consumers' pass this barrier is the key to improving repeat sales,
which has a proven impact on profitability.
* Customer Retention and Consumer's Satisfaction:
It has been learnt that long-term profits and costs are necessarily associated with
repeat customers than that of attracting new ones. Repeat customers are essential for long-
term business success mainly because of following:

(a) Purchase amount increases as they buy more per transaction.
(b) They pay price premiums more willingly because they are less price-sensitive, and
normally spend more than first-time customers
(c) Purchase frequency increases as repeat customers buy more often.
(d) Referrals - repeats customers are more likely to recommend a product or service to
other. They bring in new customers. It becomes easier to sell products because of
lower barriers to repurchase. It means that customers will have less resistance to
repurchasing products and services. Promotions will, therefore, be more cost
effective when directed to previous customers. However, despite the advantages of
achieving repeated purchase, businesses find that with each additional purchase,
customers become increasingly difficult to satisfy as shown below:
Customer
Satisfaction
New Repeat
Customer Customer
The task satisfying consumers has become complex mainly because of following
reasons:-
(a) Consumers become more demanding, because of increased familiarity with
products and services. They learn what to ask for and want more
(b) Expectation increase overtime; novelty wears off.
(c) With additional consumer contacts, there are more opportunities for error.
,
* Market Characteristics Affect Consumers' Satisfaction
In developing effective repeat-customer strategies, it is useful to consider how exiting
market characteristics affect customer satisfaction as shown below:
1. Customer Contact 2. Market Share
Customer Customer
Satisfaction Satisfaction
Low High Niche Mass
Contact Contact Marketers Marketers

3.Customer Contact 4. Market Share
Customer Customer
Satisfaction Satisfaction
Easy Hard Products Services
Market Characteristics Affect Customer
Several characteristics help to explain why consumer satisfaction varies so widely
among industries.
A variety of existing factors affect a company's ability to satisfy customers, which are
outlined in brief as follows:
Customer Contact:
The more contact a company has with its customers, the more opportunities there are
for something to go wrong. High-contact services, such as hotels and airlines, interface with,
customers more and have more chance for service failures.
Market Share :
More market share means less consumer satisfaction. Niche marketers are more in
touch with their customer's needs than mass marketers and are better able to satisfy them.
Ease of Switching:
The ease of switching to another brand affects consumer satisfaction. Companies
whose products and services are complex and difficult to transfer are not motivated to work
hard to keep their customers. Easy-to switch items make producers work harder to prevent
defections.

Product versus Service :
Products, not consumer satisfaction, achieve the highest scores. Companies have
more contact with their consumers and are more likely to make mistake in consumer relations.
* Consumers' Satisfaction : As Core Complete
Consumers' satisfaction is a growing concern among Indian businesses because of
increasing education, information and consumer awareness demanding worth and better value
for money. Retaining current actual customers and winning future potential consumers are
becoming increasingly challenging and tough task for Indian Marketers.
Consumers' focus and satisfaction are driving forces for organisations gearing up for
surviving or thriving in the twenty first century. Those that are truly doing it have turned into
consistently high performers viz. Motorola and AT & T. These companies emphasize service
quality in their strategy, giving consumers what they want, when they want it and how they
want it. They train their frontline employees well and measure consumers satisfaction. The
simple rule is that if companies are not measuring it, they are not managing it. The main
ingredient is a zealous respect for the value of consumers' satisfaction real time, every time
and understanding of how to gather, sort, analyse, interpret and use consumer data to increase
business.
- Which features consumers are willing to pay more?
- How many consumers are willing to spend to receive the items in hours instead of
days instead of weeks?
- What causes consumers to be local advocates of our products or service rather than
just consumers?
Fine-turning consumers' satisfaction measurement tool is also a challenge. One may
wish to put forward following few questions before companies marketing products and
services.

- Do we use a written survey? If yes, when and how many times in a year?
- Do we call on our target prospects on the telephone? If yes, when and how many
times in a month?
- Whether we sample only out target prospects?
- Whether we include only the top-tier consumers or include all kinds of them?
- What we do to make our questions increasingly actionable?
- How can we ensure that our company makes use of available data and information in
strategic marketing decision-making?
- Will it be reasonable to also include competitors' consumers in our survey? How shall
we include sample and also use dissatisfaction on revenue, market share and profits?
All above mentioned, questions answer that "Know the consumer because the
consumer knows best" overall, it is in the beginning stage in India. This indicates relative
importance of the concept of consumers' satisfaction philosophy in marketing activities in the
twenty-first century.
Many companies have not related their sales data with the hard truths of the cash
register. The significant uses of consumers' satisfaction feedback are unlimited. It stretches
from financing products, products and service design, product or service launch, refinements
in marketing to the customer-perceived strength of the product or service.
* Benefits of Managing Consumers' Satisfaction
The positive benefits of managing and measuring consumers' satisfaction can be
summarised as follows:
Customers:
Get better service, products and results
Highten sense of partnership and relationship
Tangible incentives

Sales:
Increase revenues through up selling satisfied consumers
Reduce attrition
Improve sales skills
Improve marketing focus and relationships
Posit company to attract new business
Reflect high standards of company
Enhance sense of pride with Leading-edge Company
Employees:
Recognition and rewards given to successes
Increased ownership of consumers' satisfaction issues
Increased creativity in problem resolution
Good resume builder
Managers and executives:
Be able to manage budget according to priorities
Provide input on training and systems issues
Help focus on customer-driven recognition and reward for successes
Can recruit better people
Methods of tracking and Measuring Consumers' Satisfaction
Generally consumers are dissatisfied with one out of every four purchases and less
then 5 per cent of dissatisfied consumers complain. Consumers feel that their complaints are
minor or that they will be made to feel stupid or that no remedy will be offered. Hence,
companies cannot use complaint levels as measure of consumers' satisfaction. Responsive
companies obtained direct companies tools for tracking and measuring consumers'
satisfaction range from primitive to the sophisticated tools.

There are several approaches used as case may be in measuring consumers'
satisfaction. They send questionnaires or make telephone calls to sample consumer’s feedback
methods as part of a comprehensive relationship strategy. These companies measure each
attribute more than once using a variety of consumer feedback techniques and multiple
approaches. The most popular approaches for this integrated system are focus groups,
personal interviews, telephone surveys, and mail surveys.
,
 Current status of Indian Automotive Industry
The industry encompasses commercial vehicles, multi-utility vehicles, passenger cars, two
wheelers, three wheelers, tractors and auto components. There are in place 15 manufacturers
of cars and multi utility vehicles, 9 of commercial vehicles, 14 of Two/Three Wheelers and 10
of Tractors besides 5 of engines. With an investment of Rs.50,000 crores, the turnover was
Rs. 59,500 crores in Automotive Sector during 1999-2000. It employs 4,50,000 people
directly and 100,00,000 people indirectly and is now inhabited by global majors in keen
contention.
India manufactures about 38,00,000 2-wheelers, 5,70,000 passenger cars, 1,25,000 Multi
Utility Vehicles, 1,70,000 Commercial Vehicles and 2,60,000 tractors annually. India ranks
second in the production of two wheelers and fifth in commercial vehicles.
India’s automotive component industry manufactures the entire range of parts required by the
domestic automobile industry and currently employ about 250,000 persons. Auto component
manufacturers supply to two kinds of buyers – original equipment manufacturers (OEM) and
the replacement market. The replacement market is characterised by the presence of several
small-scale suppliers who score over the organised players in terms of excise duty exemptions
and lower overheads. The demand from the OEM market, on the other hand, is dependent on
the demand for new vehicles.
There has been a slowdown in the automobile sector in the past two years. However, the
component industry maintained a low but positive growth rate mainly due to its export
performance. Over the years, the component industry has maintained a 10% - 12% share of
exports in the total production.
Roads occupy an eminent position in transportation as they, as per the present estimate, carry
nearly 65% of freight and 87% of passenger traffic. Although, India has 3.3 million
kilometers of road network, which is the second largest in the world, the Indian highways are
getting overpopulated. Traffic management and road sense also need attention.

 Improving Road Infrastructure
Traffic on roads is growing at a rate of 7 to 10% per annum while the vehicle population
growth for the past few years is of the order of 12% per annum. Poor road infrastructure and
traffic congestion can be a bottleneck in the growth of vehicle industry. A balanced and
coordinated approach will be undertaken for proper maintenance, upgradation and
development of roads by encouraging private sector participation besides public investment
and incorporating latest technologies and management practices to take care of increase in
vehicular traffic.
For the convenience of traveling public the Government shall also promote multi-modal
transportation and the implementation of mass rapid transport systems.
 Incentives for Research and Development
The Government shall promote Research & Development in automotive industry by
strengthening the efforts of industry in this direction by providing suitable fiscal and financial
incentives.
The current policy allows Weighted Tax Deduction under I.T. Act, 1961 for sponsored
research and in-house R&D expenditure. This will be improved further for research and
development activities of vehicle and component manufacturers from the current level of
125%.
In addition, Vehicle manufacturers will also be considered for a rebate on the applicable
excise duty for every 1% of the gross turnover of the company expended during the year on
Research and Development carried either in-house under a distinct dedicated entity, faculty or
division within the company assessed as competent and qualified for the purpose or in any
other R&D institution in the country. This would include R & D leading to adoption of low
emission technologies and energy saving devices.
Government will encourage setting up of independent auto design firms by providing them
tax breaks, concessional duty on plant/equipment imports and granting automatic approval.
Allocations to automotive cess fund created for R&D of automotive industry shall be
increased and the scope of activities covered under it enlarged.

 Auto Policy of the Government of India
Vision
To establish a globally competitive automotive industry in india and to double its contribution
to the economy by 2010.
Policy Objectives
This policy aims to promote integrated, phased, enduring and self-sustained growth of the
Indian automotive industry. The objectives are to:-
 Exalt the sector as a lever of industrial growth and employment and to achieve a high
degree of value addition in the country;
 Promote a globally competitive automotive industry and emerge as a global source
for auto components;
 Establish an international hub for manufacturing small, affordable passenger cars and
a key center for manufacturing Tractors and Two-wheelers in the world;
 Ensure a balanced transition to open trade at a minimal risk to the Indian economy
and local industry;
 Conduce incessant modernization of the industry and facilitate indigenous design,
research and development;
 Steer India's software industry into automotive technology;
 Assist development of vehicles propelled by alternate energy sources;
 Development of domestic safety and environmental standards at par with
international standards
SIAM welcomed the announcement of Auto Policy, and feels that the policy would serve as a
reference document for all stake holders and other interested parties.
The Auto Policy has spelt out the direction of growth for the auto sector in India and
addresses most concerns of the automobile sector, including-
 Promotion of R&D in the automotive sector to ensure continuous technology up
gradation, building better designing capacities to remain competitive;
impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to
facilitate their acceptance;

 Emphasis on low emission fuel auto technologies and availability of appropriate auto
fuels and
 Encouragement to construction of safer bus/truck bodies - subjecting unorganised
sector also to 16% excise duty on body building activity as in case of OEMs.
The policy has rightly recognised the need for modernising the parc profile of vehicles to
arrest degradation of air quality. The terminal life policy for commercial vehicles and move
toward international taxing policies linked to age of vehicles, are steps in the right direction.
SIAM has always been advocating encouragement of value addition within the country
against mere trading activity. However, this aspect has not been fully addressed. The Auto
Policy allows automatic approval for foreign equity investment upto 100% in the automotive
sector and does not lay down any minimum investment criteria.
The recommendation of promoting passenger cars of length upto 3.8 meters through excise
benefits is not in line with the free market concept and may lead to market distortion.
However, with the Auto Policy in place, the automotive industry would get further fillip to
become vibrant and globally competitive. The industry would get the required support from
other Ministries and departments of Government of India in achieving the goals laid down in
the auto policy.
Union Budget 2003-2004:Highlights
 Customs
 Peak rate of customs duty has been reduced from 30% to 25%. No reduction is
however effected on agricultural and dairy products.
 Customs duty on nickel has been unified at 10% from 5% and 15%, irrespective of
the class of importer.
 Customs duty on lead has been reduced from 25% to 20%.
 Customs duty on LNG regassification plants has been reduced from 25% to 5%.
 National Calamity Contingent Duty (NCCD) of 1% on motorcars, multi-utility
vehicles and two wheelers has been imposed.

Excise
 SED has been reduced from 16% to 8% on motorcars, MUVs & petrol goods carriers.
Excise duty on Electric vehicles has been reduced from 16% to 8% with full
CENVAT credit.
 National Calamity Contingent Duty (NCCD) of 1% on motorcars, multi-utility
vehicles and two wheelers has been imposed.
 Additional duty of excise on motor sprit and high-speed diesel oil has been increased
from Re.1 per litre to Rs.1.50 per litre.
Transaction Value
Deduction from the transaction value for freight would be extended to cases where freight is
worked out on an equalised basis.
Bus / Truck Body Building
To correct the iniquitous duty structure between body built by integrated units vis-à-vis
independent body builders and to promote body building by integrated bus and truck
manufacturers, the duty on chassis would be 16% + Rs.10, 000 per chassis, cleared for outside
body building.
Value Added Tax (VAT)
State level Value Added Tax (VAT) would be introduced from April 2003.
Central Sales Tax (CST)
Central Sales Tax (CST) with introduction of VAT, CST would be completely phased out
gradually, beginning with a reduction in CST to 2% in the year 2003 - 04.

Service Tax
Rate of service tax is being raised from 5% to 8%.
Authorised Service Stations" means any service station or centre authorised by any motor
vehicle manufacturers, to carry out any service or repair of any motor car, maxi-cab or two
wheeled motor vehicles manufactured by such vehicle manufactures" would have to pay
service tax of 8% instead of 5%.
Central Motor Vehicles Rules
CMVR- Technical Standing Committee on various technical aspects related to CMVR
advises the Ministry of Road Transport & Highways. This Committee has representatives
from various organisations namely; Ministry of Heavy Industries (MoHI), Ministry of Road
Transport & Highways (MoRT&H), Bureau Indian Standards (BIS), Testing Agencies such
as Automotive Research of India (ARAI), Vehicle Research Development & Establishment
(VRDE), Central Institute of Road Transport (CIRT) and industry representatives from
Society of Indian Automobile Manufacturers (SIAM) & Automotive Component
Manufacturers Association (ACMA).
Major functions of the Committee are
o To provide technical clarification and interpretation of the Central Motor
Vehicles Rules having technical bearing, to MoRT&H, as and when so
desired.
o To recommend to the Government the International/ foreign standards, which
can be used in lieu of standard, notified under the CMVR permit use of
components/parts/ assemblies complying with such standards.
o To make recommendations on any other technical issues which have direct
relevance in implementation of the Central Motor Vehicles Rules.
o To make recommendations on the new safety standards of various
components for notification and implementation under Central Motor
Vehicles Rules.
o To make recommendations on lead time for implementation of such safety
standards.

Automobile Industry Standards Committee
Another Committee called the Automobile Industry Standards Committee (AISC) having
members from MoHI, MoRT&H, BIS, ARAI, VRDE, CIRT, SIAM and ACMA, formulates
safety standards related to Automobile Industry.
The major functions of the committee are as follows
 Preparation of new standards for automotive items related to safety.
 To review and recommend amendments to the existing standards.
 Recommend adoption of such standards to CMVR Technical Standing Committee.
 Recommend commissioning of testing facilities at appropriate stages.
 Recommend the necessary funding of such facilities to the CMVR Technical
Standing Committee, and
 Advise CMVR Technical Standing Committee on any other issues referred to it.
This committee submits its recommendations to CMVR-Technical Standing Committee. The
CMVR - Technical Standing Committee looks into the recommendations of AISC and
submits its proposal with suggested the implementation dates to MoRT&H. MoRT&H then
takes the final decision on incorporating the same in the CMVR/MVA.
The issues related to implementation of emission regulation are deliberated by a separate
Committee namely Standing Committee on Implementation on Emission Legislation.
MoRT&H to discuss the future emission norms, the related test procedures and the
implementation strategy, in consultation with all stakeholders have formulated this
committee.

1.Which are the vehicles you have for providing the service?
Respondents
Vehicles Yes No
Tempo Traveller 23 2
Toyota Qualis 24 1
Tata sumo 24 1
Others 21 4

2.What factors influenced you to go for purchasing these vehicles?
Friends circle Respondents
Friends Circle 2
Family Members 5
Advertisements 9
Dealers 19
Others 4
3.How do you rate the prices of these vehicles?

3. How do you rate the prices of these vehicles?
Vehicles Respondents
Very expensive Expensive Moderate Cheap
Traveller 0 16 9 0
Qualis 3 12 10 0
Sumo 1 14 10 0
Others 1 17 7 0

4.How do you rate the finance facility provided by the dealers of these vehicles?
Verygood Good Average Notsatisfied
Traveller 3 16 6 0
Qualis 12 6 7 0
Sumo 7 12 6 0
Others 3 14 8 0

5.How do you rate the safety features of these vehicles?
verygood Good Average Poor
Traveller 3 11 7 4
Qualis 10 10 5 0
Sumo 3 11 11 0
Others 1 8 16 0

6.How satisfied are you with the resale value of these vehicles?
verymuchsatisfied Satisfied Average Notsatisfied
Traveller 1 15 9 0
Qualis 4 18 3 0
Sumo 5 16 4 0
Others 2 19 3 1

7.How do you rate the carrying capacity of these vehicles?
Respondents
Vehicles Excellent Good Average Poor
Traveller 12 9 4 0
Qualis 7 16 2 0
Sumo 3 18 4 2
Others 1 15 7 2

8.How do you rate the maintenance of these vehicles?
Respondents
Vehicles Veryexpensive Expensive Economical Cheap
Traveller 1 18 5 1
Qualis 0 12 12 1
Sumo 0 12 13 0
Others 0 13 12 0

9.How do you rate the overall performance of these vehicles?
Respondents
Vehicles Verygood Good Average Notsatisfied
Traveller 4 8 13 0
Qualis 0 25 0 0
Sumo 9 14 2 0
Others 9 14 2 0

Q1 What are the vehicles you have for transportation of your company employees?
Vehicles Yes No
Tempo Traveller 6 9
Qualis 7 8
Sumo 6 9
Others 9 8
Vehicles Available
0
2
4
6
8
10
yes no yes no yes no yes no
Tempo Traveller Qualis Sumo Others
Vehicles
Respondents

Q2 How do you rate the mileage of these vehicles?
Vehicles Very Good Good Average Poor
Tempo Traveller 01 11 03 00
Qualis 02 09 04 00
Sumo 03 10 02 00
Others 03 07 05 00
Mileage of the vehicle
0
2
4
6
8
10
12
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
Vehicles
respondents

Q3 How do you rate the carrying capacity of these vehicles?
Qualis 2 8 5 0
Sumo 1 8 6 0
Others 4 7 4 0
Carrying capacity
0
1
2
3
4
5
6
7
8
9
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
Traveller Qualis Sumo Others
Carrying capacity
Vehicles
Respondents

Q4 What is the ideal seating capacity of the vehicle most suitable for you?
Seats 0 to 5 6 to 10 11 to 15 16 to 20 21 to 25
Respondents 1 4 4 5 1
Ideal carrying capacity
0
1
2
3
4
5
6
0-5 6 to 10 11 to15 16 to20 20 to 25
Seating capacity
Respondents

Q5 How satisfied are you with the look of these vehicles?
Qualis 10 04 01 00
Sumo 02 10 03 00
Others 02 06 07 00
Look of the vehicle
0
2
4
6
8
10
12
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
Traveller Qualis sumo others
look of the vehicle
Vehicle
Respondent

Q6 How do you rate the overall performance of these vehicles?
Qualis 03 06 06 00
Sumo 02 10 03 00
Others 03 06 05 01
Overall performance
0
2
4
6
8
10
12
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
vgood
good
avg
poor
traveller Qualis sumo others
overall performance Vehicles
Respondents

Q7 Do you have any plan of purchasing new vehicles for next three months?
Yes No
7 8
Plan for purchase
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
8
8.2
yes no
plan for purchase
Vehicle
respondents

Interpretation
(About Tours & Travels)
1. 92% of the respondents have Temp Traveller for providing service. 8% of the
respondents don’t have.
2. 8% of the respondents are influenced by the friend’s circle. The family members
influence 20% of the respondents. 36% of the respondents are influenced by the
advertisements. The dealers influence 76% of the respondents. 16% of the
respondents by the other factors like hoardings & demonstrations.
3. 64% of the respondents feel that the price of the vehicle is expensive. 36% of the
respondents feel that the price of the vehicle is moderate.
4. 12% of the respondents feel that the finance facility provided by the dealers is very
good. 64% of the respondents feel that the finance facility provided is good. 24% of
the respondents feel that the finance facility is average.
5. 12% of the respondents feel that the safety features of the vehicle are very good. 44%
of the respondents feel that the safety features of the vehicle are good. 28% of the
respondents feel that the safety features of the vehicle are average. 16% of the
respondents feel that the safety features of the vehicle are poor.
6. 4% of the respondents are very much satisfied with the resale value. 60% of the
respondents are satisfied with the resale value. 36% of the respondents feel that the
safety features of the vehicle are average.
7. 48% of the respondents feel that carrying capacity of the vehicle is excellent. 36% of
the respondents feel that carrying capacity of the vehicle is good. 16% of the
respondents feel that carrying capacity of the vehicle is average.
8. 4% of the respondents feel that the maintenance of the vehicle is very expensive. 72%
of the respondents feel that the maintenance of the vehicle is expensive. 20% of the
respondents feel that the maintenance of the vehicle is economical. 4% of the
respondents feel that the maintenance of the vehicle is cheap.
9. 16% of the respondents feel that the overall performance of the vehicle is very good.
32% of the respondents feel that the overall performance of the vehicle is good. 52%
of the respondents feel that the overall performance of the vehicle is average.

Interpretation
(About Companies)
1. 40% of the companies have Temp Traveller for transporting the employees. 60% of
the companies don’t have.
2. 6.66% of the companies feel that the mileage of the vehicle is very good. 73% of the
companies feel that the mileage of the vehicle is good. 20% of the companies feel that
the mileage of the vehicle is average
.
3. 40% of the companies feel that the carrying capacity of the vehicle is very good.
46.66% of the companies feel that the carrying capacity of the vehicle is good.
13.33% of the companies feel that the carrying capacity of the vehicle is average.
4. 60% of the companies are satisfied with the existing carrying capacity. 40% of the
companies feel that the carrying capacity should be increase from 15 to 25.
5. 13.33% of the companies feel that the look of the vehicle is very good. 40% of the
companies feel that the look of the vehicle is good. 40% of the companies feel that
the look of the vehicle is average. 6.66% of the companies feel that the look of the
vehicle is poor.
6. 20% of the companies feel that the overall performance of the vehicle is very good.
60% of the companies feel that the overall performance of the vehicle is good. 20% of
the companies feel that the overall performance of the vehicle is average.
7. 46.66% of the companies are planning to purchase a new vehicle within next 3
months. 53.33% of the companies are not interested in going for repurchasing.

8.

Findings
1. Tempo Traveller is a major player in the urbansied cities as its carrying capacity is more
as compared to Qualis and Sumo. Most of the software companies opt for it as it can carry
15 passengers at a time for one shift. There will not be many shifts & transportation cost
will be more economical, due to this reason.
2. Tempo Traveller is a comfortable vehicle as it facilitates smooth drive.
3. The finance facilities provided by the dealers to the customers are satisfactory. Most of
the times 70% of the customers go for their own means of finance for purchasing the
vehicles.
4. Tempo Traveller has relatively lesser competition with Qualis and Swaraj Mazda being
other Players.
Software companies and the engineering companies in Banglaore are finding Tempo
Traveller as a comfortable and economical vehicle for the transportation of their employees.
The conversation with the Transportation incharges and HR Managers revealed this
information. But they feel that the seating capacity should have been more as in case of
Swaraj Mazda vehicles. As far as the mileage is concerned they rate it as good or overage as
the other vehicles, they have, give 11-15 km/Ltr where as in Tempo Traveller it is about 9-
10Kms/Hr. They also suggest about the exterior changes (outer look) of the vehicle.
Air conditioners and the pushback seats are the interior requirements; most of them
transportation incharges feel.
Tours & Travels go mostly for purchasing Tempo Traveller rather than Sumo and
Indica as the companies and call centers are their main customers and these customers opt for
Tempo Travellers

Most of the profit comes through Tempo Travellers and Qualis as companies demand
this vehicle for employee transportation and for picnics.
BPO centers and call centers go for Qualis as AC comfort is there and it is more
spacious & it has an excellent look.
The conversation with the passengers has revealed some important information. As
far as passenger’s views are concerned, they say that it is a comfortable vehicle and more
economical as it costs less for them.
The only requirement they feel is some interior comforts like air conditioners and
push back seats.
The conversation with the drivers revealed the following information.
1. Tempo Traveller is a comfortable vehicle for driving with spacious front cabin.
2. There is a problem regarding break and steering, as they are very hard.
3. As the body weight is very light in case of new models, vibration is high.

Possible Improvements:
1. At present the target market includes urban areas, it must also include sub-urban and
rural areas, with more promotional activities.
2. Loan Meals must be conducted to create awareness about finance facilities available.
3. Some of the interior comforts like Air conditioners pushback seats and video-Audio
facilities can be provided, as these are the requirements of most of the customers
mainly of software units and call centers.
4. Distribution and after sales service should be taken with at most care. As the vehicles
will have long running life, it is essential to have a wide network of service stations
and easy availability of spare parts.
5. As dealers form an important link between manufacturers and customers and as they
are the valuable source of information on customer preferences, Dealer Development
Programmes must be carried out.
6. Modernisation and stadardisation of dealers network must be carried out in order to
exchange ideas on successful selling strategies and identifying areas of improvements
‘Sales through Service’.
7. Credit on short-term basis at commercial rates can be provided to dealers, rather than
offering discounts or any other preferential pricing of its dealers, on its vehicle sales
8. Dealer’s workshops should be modernized in order to increase productivity and
reduce service time. This will encourage customers to come to authorized workshops
and service centers, where they have ensured good service and genuine spare parts
instead of going to small-unlicensed mechanics.
9. Extensive servicing network and spare parts delivery system must be established in
order to provide quick service.
10. Body weight of the vehicle must be increased which will reduce vibrations.
11. Mileage should be more.
12. More promotional activity has to be taken place in sub-urban and rural areas.

Conclusion:
To conclude, it is very much limited time to clearly understand the customer
satisfaction. Apart from this we need to focus on each customer’s view carefully in regular
time intervals (periodically) so to the best possible is presented here. Still there is a lot of
scope for developing on this subject, as excellence is not limited always.
Thus in brief, we can conclude that managing and measuring customer’s satisfaction
can bring about positive benefits to customers, sales people, managers and executives as well
as other employees. The customer’s satisfaction boosts employee morale, reducing employee
turnover and in turn helps to produce more satisfied customers.
Thus the significance of customer’s satisfaction stretches from financing products,
product refinements and service refinements hence assisting in marketing the customer
perceived strengths of the product or service.

A project report on customer satisfaction about tempo traveler at bajaj tempo limited BY BABASAB PATIL

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A project report on customer satisfaction about tempo traveler at bajaj tempo limited BY BABASAB PATIL