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Study of

Service
Operations at
Castrol Bike
Zone

Group No:
7

Anirban Dhar,

Anoop S Pillai,

Clevin Carvalho,

Mayank Rawat,

Vamsi Kanth.
Group No: 7 Study of Service Operations at Castrol Bike Zone

Table of Contents

1. Executive Summary………………………………………03

2. Introduction………………………………………………..04

3. Objective of the study……………………………………07

4. Overview of Castrol Bike Zone…………………………10

5. Research methodology………………………………….11

6. Limitation of the study…………………………………..15

7. Finding and Analysis…………………………………….16

8. Conclusion…………………………………………………25

9. Annexure…………………………………………………...26

10. Questionnaire..........................................................27

Executive Summary

The automobile industry today is the most lucrative industry. Due to the
increase in disposable income in both rural and urban sector and easy finance
being provided by all the financial institutes, the bikes sales have increased

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Group No: 7 Study of Service Operations at Castrol Bike Zone

rapidly over the corresponding period in the previous year. Further competition
is heating up in the sector with a host of new players coming in to venture in
the Indian markets. One factor that could help the companies in the marketing
of their product is by knowing and creating a personality for their brands.

This report attempts to answer some of the questions regarding service and
satisfaction level of Castrol Bike Zone in India by conducting the market
research. This report is categorized into parts, deals with introduction to Castrol
Bike Zone, companies selected, product and the industry.

The behaviour of the customers can be studied by knowing their perceptions


about the bikes in the market and about the possible entrants in the market.
This research will help in knowing what a customer (or a potential customer)
thinks about the service and satisfaction level with Castrol Bike Zone and what
are the possible factors guiding a possible revisit. Similarly, the idea of
measuring the customer satisfaction will serve the same purpose of
determining the customer perception. Thus, by measuring the” willingness of
existing users of a bike to recommend it to others” will help the Castrol Bike
Zone to chalk out the entire Customer Behaviour.

The report shall attempt to answer some of the questions regarding


service and satisfaction level at Castrol Bike Zone serviced bikes in Bangalore
by conducting a market research. The market research will be helpful for the
service centres in India to find out the possible gaps between the customer
expectations and the present market offerings. This way these service centres
will be able to find their share in the ever-expanding Indian market pie.

The research will track the customer satisfaction in the following two layers:

 Product related Parameters


 Dealers related parameters

The customer satisfaction index will be calculated for the bikes taken into
consideration.

It will be mainly a primary research and the information will be gathered from

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both primary and secondary research. The study will analyze the applicability
of existing research concepts, theories, and tools for evaluating consumer
satisfaction.

Introduction
It is true fact that if you are satisfied you recommended to others. Word of
mouth and customer satisfaction play a very important role in determining
market perception about a service centre. It is the market perception that
determines the success of a service centre and so it is very important for the
service centres to measure the “willingness of existing users of a product to
recommend it to others”. The same is a lot of interest to customers as well for
it helps them make the service decision.

A bike is one of the most significant purchases that an Indian consumer makes
and this project addresses the most important question that perplexes bike
service centres:

“What makes Winning Customers Trust and willingness of a product


to recommend it to others by him?”

The project highlights the factors that influence the service centre decision of a
consumer.

The factor under consideration would be:

 Price
 Technical Facilities
 Service Time
 Bike Handling
 Staff Knowledge
 Finance schemes

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Customer satisfaction index: some of the most advance thinking in the


business world recognizes that customer relationships are best treated as
assets, and that methodical analysis of these relationships can provide a road
map for improving them

“If you cannot measure it, you cannot improve it.” – Lord William
Thomson Kelvin (1824-1907)

Major attributes of customer satisfaction can be summarized as:

 Product quality
 Product packaging
 Keeping delivery commitments
 Price
 Responsiveness and ability to resolve complaints and reject reports
 Overall communication, accessibility and attitudes

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Values

+ Benefits -

Features - Attributes

We cannot begin to address the customer satisfaction issue we define the


parameters and measures clearly.

The customer satisfaction index represents the overall satisfaction level of that
customer as one number, usually as a percentage

“The fact that word of mouth sales are a big deal in this industry has also
helped. Industry players and market surveys reveal that 20-30 percent of sales
are through word of mouth”.

For the purpose of the project has undergone through

 Surveying the relevant consumer base through exhaustive questionnaire.


 Understand the elements underplaying in each segment
 Deducing An analytical overview through different statistical methods

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Recommendation comes from satisfaction and satisfaction comes from

Relationship Quality

Product Service
Quality Quality

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Objectives of Study
The research objective is a statement, in as precise terminology as possible, of
what information is needed. The research objective should be framed so that
obtaining the information will ensure that the research purpose is satisfied.

Research objective have three components.

Research question:

The research question specifies the information to select the service centre
decision making needs. The responsibility of the researcher is to make the
researcher question as specific and precise as possible. The researcher
question asks what specific information is required to achieve the research
purpose, or answer the research problem. If the research questions are
answered by the research, then the information should aid the decision maker.

Development of hypothesis:

A hypothesis is a possible answer to a question. Development of hypotheses


implies generating basically alternative answers to research questions. The
research determines which of these alternative answers is correct. It is not
always possible to develop hypotheses, but efforts should be made.

Scope or boundaries of the research:

Defining the scope of the research or the research boundaries ensures the
desired precision or accuracy of the result. The researcher’s responsibility is to
restate the initial variables associated with the decision problem, that is
convert the research problem, in the form of one or more key question formats-

• How
• What

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Group No: 7 Study of Service Operations at Castrol Bike Zone

• Where
• When
• Why

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Objectives of the Research:

The research objectives for the project undertaken can be defined as follows:
 To examine the customer perception about the Castrol Bike Zone.
 To judge the satisfaction level of bike owners of different brands at
Castrol Bike Zone.
 The research tracks responses at following two layers
 Product related parameters
 Service Station related parameters
 To analyze the psychographic variables of the customers at Castrol Bike
Zone

Scope of the study:


It is aimed to study the satisfaction level of the customer at Castrol Bike Zone.
The project is analyzed the demographic, psychographic and satisfaction
characteristics of the customers in servicing the bike. It includes the detailed
study of customers focusing on the various parameters that lead to identifying
and understanding the perception of the customer in servicing the bikes.

Research Methodology:
A research process consists of stages or steps that guide the project from its
conception through the final analysis, recommendations and ultimate actions.
The research process provides a systematic, planned approach to the research
project and ensures that all aspects of the research project are consistent with
each other.

Research studies evolve through a series of steps, each representing the


answer to a key question.

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Group No: 7 Study of Service Operations at Castrol Bike Zone

R esea

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Overview of Castrol Bike Zone

Transparency in Operations:

Customer can wait at the swanky waiting lounge in BikeZone and can see his
bike being serviced by professional and experienced mechanics that have been
trained by the Castrol Training Team. The Spare parts used are genuine and
prior approvals are taken from the customer before commencing any work.

Personalized Attention:

The service advisor ensures that all customers get undivided attention and all
their problems are noted down systematically and solutions provided as per
the problems.

Expert Mechanics:

The Mechanics who treat the bike are extremely professional and trained in
their work.

High Tech Equipments:

High Quality Tools, Ramps and other equipments are used to treat the
customers’ vehicles.

Extreme care is taken to deliver a world class experience to


the customer.

Currently Bike Zone has 96 Operational across 18 cities in


India, and is rated as one of the top 20 franchising opportunities.

Present Bike Zone Network

Bike Zone Network wants to grow to 220 operating sites by end of 2008.

With the present set of operating stores, BikeZone network satisfies around
45,000 customers per month which itself speaks of high quality and great

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Group No: 7 Study of Service Operations at Castrol Bike Zone

brand value this set up brings to customers. Plans to sell Exclusive Branded
Merchandise like Helmets, Bike Covers, and Security Systems are underway
.The products would be in the Retail market through the BikeZone Set up by
end of april-2008

With Increased focus and a dedicated team, BikeZone is poised to touch


greater heights.

Research Methodology
This chapter aims to understand the research methodology establishing a
framework of evaluation and revaluation of primary and secondary research.
The techniques and concepts used during primary research in order to arrive at
findings; which are also dealt with and lead to a logical deduction towards the
analysis and results.

Research Design:
We propose to first conduct a intensive secondary research to understand the
full impact and implication of the Castrol Bike Zone, to review and critique the
norms and reports, on which certain issues shall be selected, which we feel

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Group No: 7 Study of Service Operations at Castrol Bike Zone

remain unanswered or liable to change, this shall be further taken up in the


next stage of exploratory research. This stage shall help us to restrict and
select only the important question and issue, which inhabit growth and
segmentation in the service station.

The various tasks that we have undertaken in the research design process are:
 Defining the information need
 Design the exploratory, descriptive and causal research.

Research Process:
The research process has four distinct yet interrelated steps for research
analysis it has a logical and hierarchical ordering:
 Determination of information research problem.
 Development of appropriate research design.
 Execution of research design.
 Communication of results.
Each step is viewed as a separate process that includes a combination of task,
step and specific procedure. The steps undertake are logical, objective,
systematic, reliable, valid, impersonal and ongoing.

Exploratory research:
The method we used for exploratory research was

 Primary Data
 Secondary data

Primary Data:
New data gathered to help solve the problem at hand. As compared to
secondary data which is previously gathered data. An example is information

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Group No: 7 Study of Service Operations at Castrol Bike Zone

gathered by a questionnaire. Qualitative or quantitative data that are newly


collected in the course of research, Consists of original information that comes
from people and includes information gathered from surveys, focus groups,
independent observations and test results. Data gathered by the researcher in
the act of conducting research. This is contrasted to secondary data which
entails the use of data gathered by someone other than the researcher
information that is obtained directly from first-hand sources by means of
surveys, observation or experimentation.

Primary data is basically collected by getting questionnaire filled by the


respondents.

Secondary Data:
Information that already exists somewhere, having been collected for another
purpose. Sources include trade publications, and subscription services. There
are two types of secondary data: internal and external secondary data.
Information compiled inside or outside the organization for some purpose other
than the current investigation. Data that have already been collected for some
purpose other than the current study. Researching information which has
already been published. Market information compiled for purposes other than
the current research effort; it can be internal data, such as existing sales-
tracking information.

Secondary source of data used consists of books and websites

Our proposal is to first conduct a intensive secondary research to understand


the full impact and implication of the Castrol Bike Zone, to review and critique
the norms and reports, on which certain issues shall be selected, which we feel
remain unanswered or liable to change, this shall be further taken up in the
next stage of exploratory research.

Descriptive research:

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STEPS in the descriptive research:

 Statement of the problem

 Identification of information needed to solve the problem

 Selection or development of instruments for gathering the information

 Identification of target population and determination of sampling Plan.

 Design of procedure for information collection

 Collection of information

 Analysis of information

 Generalizations and/or predictions

Data Collection:

Data collection took place with the help of filling of questionnaires. The
questionnaire method has come to the more widely used and economical
means of data collection. The common factor in all varieties of the
questionnaire method is this reliance on verbal responses to questions, written
or oral. We found it essential to make sure the questionnaire was easy to read
and understand to all spectrums of people in the sample. It was also important
as researcher to respect the samples time and energy hence the questionnaire
was designed in such a way, that its administration would not exceed 4-5 mins.
These questionnaires were personally administered.

The first hand information was collected by making the people fill the
questionnaires. The primary data collected by directly interacting with the
people. The respondents were contacted at various Castrol Bike Zone service
centres. The data was collected by interacting with 38 respondents who filled
the questionnaires and gave us the required necessary information. The
respondents consisted of students, business men, professionals etc. the

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Group No: 7 Study of Service Operations at Castrol Bike Zone

required information was collected by directly interacting with these


respondents.

Determination the sample plan and sample size:

Target Population:
It is a description of the characteristics of that group of people from whom a
course is intended. It attempts to describe them as they are rather than as the
describer would like them to be. Also called the audience the audience to be
served by our project includes key demographic information (i.e.; age, sex
etc.).The specific population intended as beneficiaries of a program. The group
of people you are trying to reach with a particular strategy or activity. The
target population is the population we want to make conclusions about. In an
ideal situation, the sampling frames to matches the target population. A
specific resource set that is the object or target of investigation. The audience
defined in age, background, ability, and preferences, among other things, for
which a given course of instruction is intended.
We have selected the sample trough Simple random Sampling

Sample Size:

This involves figuring out how many samples one need.

The numbers of samples you need are affected by the following factors:

 Project goals

 How you plan to analyze your data

 How variable your data are or are likely to be

 How precisely you want to measure change or trend

We have targeted 38 people in the age group above 20 years for the purpose
of the research. The sample size is influenced by the target population. The

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target population represents the Bangalore regions. The people were from
different professional backgrounds.

The details of our sample are explained in chapter named primary research
where the divisions are explained in demographics section.

Sampling technique:
Simple random sampling technique has been used to select the sample
A simple random sample is a group of subjects (a sample) chosen from a larger
group (a population). Each subject from the population is chosen randomly and
entirely by chance, such that each subject has the same probability of being
chosen at any stage during the sampling process. This process and technique
is known as Simple Random Sampling, and should not be confused with
Random Sampling.

Limitations of the study:


 All the research projects are hindered in their smooth flow by some
unforeseen problems. The problems arise in the form of constraints by
time and scope of the study. The current project was also faced by
certain problem. Some of the problems faced in the course of the
research are as follows:

 A strong unwillingness on the part of the owners of various bikes, to


participate and aid the research.

 Sampling error: the research include a sample size of 38 customers which


is not enough to determine the brand perception of the consumers for
servicing the bikes. Since its not a census survey there is always a
chance of error while extrapolating the results of a sample study over the
population especially in those researches where the qualitative aspects
are concerned. So it’s always doubtful to map the qualitative aspects
using a quantitative measure.

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 The study was limited to the geographical region of BANGALORE

Findings & Analysis


Q1. No of Problems experienced in your Vehicle
• None
• One
• Two
• Three or More

Interpretation:

As per the analysis shows, Problems Experience seems to be the most

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important reason for servicing the bike. Similarly, the performance needs
like mileage, speed, stability at higher speed etc. adds to the motives for
servicing the bike.

Q2. No of times you have returned for same problem


• None
• One
• Two
• Three or More

Interpretation:

It clearly indicates that most of the customers got solved their problems in the
first visit itself at Castrol Bike Zone, similarly few customers were also returned

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for the same problem due to some reasons

Q3. Please rate your Castrol Bike Zone on the understated parameters
on the scale of 1 to 5 where

1 Highly Satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
5 Highly Dissatisfied

Parameters 1 2 3 4 5

Ease of Obtaining
appointment for Service
Distance ( Proximity)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Bike Handling ( Delivery &
service)
Assured Customer
Transactions
Ambience of Service Center
Finance ( Credit) Schemes

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Dealers are the middle men between a bike manufacturer and its customers.
Dealer thus becomes the most important link in joining the company to its
customers as he is the person who will sell the product, will deliver it and will
keep on providing the after sales services to the customers as and when
required. So, it becomes necessary automatically to study dealer as a part of
customers’ satisfaction journey with the product called bike!

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Interpretation:
Among all the listed factors Castrol Bike Zone is fares the best among all its
counter parts in terms of dealer density which is quite obvious. Also, the cost of
service provided by Castrol Bike Zone is also satisfied by the most of customer.
Similarly, Castrol Bike Zone emerges out as the clear winner among its
competitors through its excellent services, we say all thanks to the vast,
extensive and well managed service system.

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Q4. How do you rate the brand image of your Service Center?

1 2 3 4 5
Very Low Very High

Interpretation:

As per the analysis, Castrol Bike whose brand image is most preferred in the
market. This is because of the reason, that it’s from the house of Castrol, a
London company known for its overall image. Similarly due to few reasons few
customers were rated as Low image about the Bike Zone.

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Q5. Please rate your performance of your bike after service on the
scale of 1 to 5

• 1 Highly Satisfied
• 2 Satisfied
• 3 Neutral
• 4 Dissatisfied
• 5 Highly Dissatisfied

Parameter 1 2 3 4 5
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed

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Interpretation:
The customer choice of the bike highly depends upon the performance and
maintenance costs of the bike. This is the reason why this class of parameter
was chosen for this study. And the results show that Castrol Bike Zone fares the
best service in its segment as most efficient service of all. So this segment
shows a mixed bag of response for the Fuel efficiency and mileage parameter
etc. Bike Zone performs consistently on all the parameters and all serviced
bikes fares really well on pick up whereas it fares somewhat badly on fuel
consumption and Top Speed.

Q5. Reasons for choosing Bike Zone (rate best 3 factors from 1 to 3 in
order of your preference)

1. Affordable price
2. Technical superiority over competition
3. Comfort
4. Manufacturer’s image
5. Value for money
6. Safety

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Interpretation:

Indian market is still the hard nut to crack for most of the automobile
manufacturers. Though the Indian bike industry is among the fastest growing
bike markets of the world still the Indian psyche is too complex for the
manufacturers to understand. The most important reason for choosing Castrol
Bike Zone seems to be “Comfort”, 19 of the respondents suggested that
“Manufacturer’s Image”, “Affordable prices” are the most important factor
while choosing a bike zone. This is the reason why 15 of respondents were
satisfied with the Castrol Bike Zone. This reason is also followed by ‘Value for
money’ where the customers look for the best product, best services and best
repute all bundled in one with the best deal they can strike. This explains 16 of
respondents were told that Castrol Bike Zone proves “Value for Money”.

Q6. Will you recommend to your friends?

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Group No: 7 Study of Service Operations at Castrol Bike Zone

• Yes
• No

Interpretation:

It seems logical that satisfied customers will someday become loyal customers,
in other words there is a positive correlation between customer satisfaction
scores and customer buying behaviour. If a customer rates the Castrol Bike
Zone very high in satisfying his or her needs, the bike Zone should expect
more referrals and this is reflected in the analysis that 36 of our respondents
say that they will refer their car to their friends & relatives.

Demographics:

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We surveyed 38 people who belonged to various age groups. The survey of 4


age groups was done. The four age groups were:
 Less than 21 years
 21 -35 years
 36-54 years
 More than 55 years

Conclusion
To conclude, the results show that the Castrol Bike Zone is playing on the
peripheral cues to maintain their Total Relationship Management and connect
to the customers both present and potential. The Bike Zone is operating in a

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highly aggressive and competitive global market place and this climate has led
to the emphasis on quality in all aspects. TQM focuses on integration and
coordination as well as the continuous improvement of all activities and
processes. Total Relationship Management (TRM) is a very recent marketing
strategy and philosophy. It focuses on and is concerned with all integrated
internal and external activities within the organizations. These two terms are
integrated by the Castrol by building good quality products and building good
relationship with Consumers through enhancing it service levels.

However, when studied from the point of view of a customer there seems to be
no major difference among the bike brands in a segment as far as performance
is concerned. The brand perception is dependant mostly on the peripheral cues
depending upon the nature and quality of the service provided along with the
pricing, maintenance, availability of spare parts and related issues. So, Castrol
Bike Zone should focus more on its pricing factor because few customers were
felt that the priced being charged is higher than other service centres.

The study shows that brand perception is something which starts building up
before servicing a bike and goes on with its use and is reflected in the
recommendations the customer makes to his acquaintances for the same bike
zone. Also, it’s seen that the customer might not be using the bike still he holds
the perceptions about it. Brand personality of a service zone is enforced by the
dealers in the mindsets of the customers and the customers react to it by
forming their perceptions about the service station and this reflects in the
overall brand image of the bike zone. So brand image complement each other
and the brand perception aids the building of brand image.

Finally the major point that emerges out of this detailed study is a caution
for the service stations. It says that there is no doubt that Indian market may
be growing with a double digit figure still the service stations have a long way
to travel to convince their customers about the Quality of their service and how
it suits the prospective consumers. Simply because it simply is not a guarantee
that how so ever good the customer might be holding the brand perception
and how so ever good the brand image may be it is not a guarantee that it will
convert into sale. Bikes just like clothes and accessories suit the style and

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Group No: 7 Study of Service Operations at Castrol Bike Zone

persona of a person and since all bikes will become commodity someday the
key to sell and excel in the market will lie with a person who knows how to use
the perceptions of the customers to its use and sell the bikes ‘coz ultimately
only that bike survives which sells!

Annexure

 REFRENCES

 QUESTIONNAIRE

References:

Sites Visited -

www.scribd.com
www.mountshut.com

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Questionnaire
Dear Customer:
As the student of IFIM B- School, I want to thank you for giving us the
opportunity to serve you. Please help us serve you better by taking a couple of
minutes to tell us about the service that you have received so far. We
appreciate your business and want to make sure we meet your expectations.

Q1. No of Problems experienced in your Vehicle


• None
• One
• Two
• Three or More

Q2. No of times you have returned for same problem


• None
• One
• Two
• Three or More

Q3. Please rate your Castrol Bike Zone on the understated parameters on the scale of 1
to 5 where

1 Highly Satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
5 Highly Dissatisfied

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Group No: 7 Study of Service Operations at Castrol Bike Zone

1 2 3 4 5

Ease of Obtaining appointment for


Service
Distance ( Proximity)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Bike Handling ( Delivery & service)
Assured Customer Transactions
Ambience of Service Center
Finance ( Credit) Schemes

Q4. How do you rate the brand image of your Service Center?

1 2 3 4 5
Very Low Very High

Q5. Please rate your performance of your bike after service on the scale of 1 to 5

• 1 Highly Satisfied
• 2 Satisfied
• 3 Neutral
• 4 Dissatisfied
• 5 Highly Dissatisfied

Parameter 1 2 3 4 5
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed

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Group No: 7 Study of Service Operations at Castrol Bike Zone

Q5. Reasons for choosing Bike Zone (rate best 3 factors from 1 to 3 in order of your
preference)

7. Affordable price
8. Technical superiority over competition
9. Comfort
10. Manufacturer’s image
11. Value for money
12. Safety

Q6. Will you recommend to your friends?

• Yes
• No

Age group:
 <21
 21-35
 36-55
 >55

Number of Bikes owned:

Present Bike owned (At the time of service):

NAME: GENDER:

Phone NO:

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