IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
TABLE OF CONTENTS Serial Number 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Title Executive Summary Introduction To Study Objectives Of The Study Company Profile Research Methodology Analysis And Interpretation Findings Recommendations Conclusion Bibliography Annexure
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
EXECUTIVE SUMMARY
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
EXECUTIVE SUMMARY The project was taken as a part of MBA program at the end of first year (2 nd semester).Any company’s fate or destiny predominantly depends upon its incredible sales figures, which in turn depends upon various aspects (Internal or External). A slowdown in sales of automobile sector is chronologically observed every year during the months June and July, which intensely affect the entire dealership firms leaving them with no options other than waiting for the difficult days to go and recoup their usual sales, which would perhaps balance the variation in revenue. This provided a great scope for my topic chosen i.e. “Identification Of Reason For Variation In Sales During The Months June-July Every Year”. The study provides with the means towards designing strategies that will root out the above-mentioned problem. The study had been carried on by analyzing the given problem from various perspectives such as •
Company’s perspective.
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Customer’s perspective.
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Competitor’s perspective.
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Sales effectiveness perspective Each subset of the entire framework to tackle the situation was carried out effectively,
especially while analyzing the problem from customers and sales effectiveness perspective, surveys were undertaken. For survey of customer, the sample unit consisted of walk in customers and warm customers with sample size of 60. Area of survey was North Karnataka (Comprising 12 districts). Sampling method used was convenience sampling. Survey from sales effectiveness point of view, included all the sales officers from all the 12 districts of North Karnataka.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR The finding comprised of defining the causes of the problem and exploring the different ways that will root out the problem. Analysis of the findings using suitable statistical tools & in-depth investigation paved way to that platform where in I could give good recommendation.
Key findings •
An astonishing fact was uncovered, where in 36.60% of the customers did not go for a purchase of the car in these two months (June-July) because of religious beliefs i.e., they believed in “Ashad Massam” (As per Hindu Calendar ).
•
Internal issues of organization were also found to be contributing towards the problem.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
INTRODUCTION TO THE STUDY
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. The “deal is closed�, means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller. The seller, the owner of the goods, completes a sale. It starts with consent (or agreement) to an acquisition, appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price the sale is still valid and gives rise to an obligation to pay. The Relationship Between Sales and Marketing: Marketing plays a very important part in sales. If the marketing department generates a potential customers list, it can be beneficial for sales. The marketing department's goal is to bring people to the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations. Driving more customers "through the door" gives the sales department a better chance by ratio of selling their product to the consumer. There may also be a downside to this phenomenon. Very often (for legal reasons, e.g. in non-store retailing) companies have to provide credit to customers. This may cause a conflict between the sales department on the one hand and the credit department on the other hand. It goes without saying that sales is the back bone of any firm, even a slight variation can give rise to awful circumstances there by creating a issue for any organization, demanding great concern .
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR The project focuses on the study of “Identification and analysis of causes for variation in sales during the months June & July every year”. This also includes in depth study of each factors& the extent they influence the variation in sales, the analysis is followed by designing of strategies to over come the issue effectively and efficiently. •
Consumer’s beliefs leading to development of highly resistive mind set of customers with respect to the orthodox beliefs is the main factor determining the transition in these two months.
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In depth, study of the consumer’s mindsets Along with other internal issues is highly essential for the dealership, remaining no longer just a small issue. It calls for the Manufacturing firm to extend great support, sensing and responding rapidly to the consumers demand in a co-ordinate way.
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The study is designed to give the dealer the information that can help them get a better grasp on customers beliefs and preferences and respond profitably
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Fascinatingly, it was found significant commonalities among responses across most potential markets. This report highlights these results as well as few specific differences in the opinion.
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The executive summary provided an overview of key findings from the study, and the section that follow offer more in depth data and analysis on consumer beliefs & opinion.
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The world today is changing rapidly, consumers are changing, and the speed of change is continuing to accelerate. This is why the study carried out four years back by the company’s professional marketers in this regard found no means of motivating consumers to purchase the car by overcoming their beliefs.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR •
Therefore, this study will provide “Shodha Toyota” company with insights that can help them respond faster and more effectively to such variation in sales.
REASON FOR THE TOPIC CHOSEN
2005 2006 2007
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
OBJECTIVES OF THE STUDY
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
OBJECTIVES OF THE STUDY •
To find the reasons for variation in sales every year in the month of June / July.
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To find ways to motivate customers to purchase car in these two month.
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To suggest sound strategies to root out the problem forever.
SUB OBJECTIVES •
To carry out competitor analysis.
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To deliberate sales effectiveness.
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To study the promotional activities and different schemes undertaken by the company.
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To analyze the extra efforts made by the company to boost the sales in June/July.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
PROFILE OF
TOYOTA MOTOR CORPORATION
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR ‘Toyota Motor Corporation’ is a multinational corporation headquartered in Japan, and currently is the world's largest automaker. In terms of name recognition, Toyota is also the only car manufacturer to appear in the top 10 of the Brand name Recognition ranking. In 1934, while still a department of Toyota Industries, it created its first product Type-A engine and its first passenger car (the Toyota-AA) in 1936. ‘Kiichiro Toyoda’ founded the company in 1937 as a spin-off from his father's company Toyota Industries to create automobiles. Toyota also owns and operates Lexus and Scion brands and has a majority shareholding in Daihatsu Motors, and minority shareholdings in Fuji Heavy Industries, Isuzu Motors, and the engine, motorcycle and marine craft manufacturer Yamaha Motors. The company includes 522 subsidiaries. Toyota is head quartered in Aichi, Nagoya and in Tokyo. In Addition to manufacturing automobiles, Toyota provides financial services through its division Toyota Financial Services and creates robots. Toyota Industries and Finance divisions form the bulk of the Toyota Group, one of the largest conglomerates in the world
HISTORY In 1933, Toyoda Automatic Loom Works created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Kiichiro Toyoda had traveled to Europe and the United States in 1929 to investigate automobile production and had begun researching gasoline-powered engines in 1930.
Toyota automatic loom (Type G) Babasabpatilfreepptmba.com
Replica of the Toyota Model AA Page 13
IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Toyoda Automatic Loom Works was encouraged to develop automobile production by the Japanese government, which needed domestic vehicle production partly due to the worldwide money shortage and partly due to the war with China. In 1934, the division produced its first Type-A engine, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. Early vehicles bear a striking resemblance to the Dodge Power Wagon and Chevrolet, with some parts actually interchanging with their American originals. Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms, which are now computerized and electric sewing machines, which are available worldwide. During the Pacific War (World War II) the company was dedicated to truck production for the Imperial Japanese Army. Because of severe shortages in Japan, military trucks were kept as simple as possible. For example, the trucks had only one headlight on the center of the hood. The war ended shortly before a scheduled Allied bombing run on the Toyota factories in Aichi. After the war, commercial passenger car production started in 1947 with the model SA. In 1950, a separate sales company, Toyota Motor Sales Co., was established (which lasted until July 1982). In April 1956, the Toyopet dealer chain was established. The following year, the Toyota Crown became the first Japanese car to be exported to the United State and Toyota's American and Brazilian divisions, Toyota Motor Sales Inc. and Toyota do Brazil S.A., were also established. Toyota began to expand in the 1960s with a new research and development facility, a presence in Thailand was established, the 10 millionth model was produced, a Deming Prize and partnerships with Hino Motors and Daihatsu were established. The first Toyota built outside Japan was in April 1963, at Port Melbourne in Australia By the end of the decade, Toyota had established a worldwide presence, as the company had exported its one-millionth unit.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Company overview The Toyota Motor Company was awarded its first Japanese “Quality Control Award” at the start 1970s and began participating in a wide variety of Motor sports. Due to the 1973 oil, crisis consumers in the lucrative U.S. market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an "entry level" product, and their small vehicles were not made to a high level of quality in order to keep the price low. Japanese customers, however, had a long-standing tradition of demanding small fuel-efficient cars that were manufactured to a high level of quality. Because of this, companies like Toyota, Honda, and Nissan established a strong and growing presence in North America in the 1970s. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture With GM called NUMMI, the “New United Motor Manufacturing, Inc.”, operating an automobile manufacturing plant in Fremont, California. The factory was an old General Motors plant that had been closed for several years. Toyota then started to establish new brands at the end of the 1980s, with the launch of their luxury division Lexus in 1989. In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup, including a full sized pickup. The T100 (and later the Toyota Tundra), several lines of SUVs, a sport version of the Camry, known as the Camry Solar, and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also began production of the World’s best selling hybrid car, the Toyota Pries, in 1997.With a major presence with Europe, due to the success of Toyota Team Europe, the corporation decided to set up TMME, Toyota Motor Europe Marketing & Engineering, to help market vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had become very popular among British drivers. Bases in Indiana, Virginia and Tianjin were also set up.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR In 1999, the company decided to list itself on the New York and London Stock Exchange with over 30 million sold, the Toyota Corolla is the best selling car in the world.
In 2001, Toyota's Toyo Trust and Banking merged to form the UFJ, United Financials of Japan, which was accused of corruption by the Japan's government for making bad loans to alleged Yakuza crime syndicates with executives accused of blocking Financial Service Agency inspections. The UFJ was listed among Fortune Magazine's largest money losing Corporations in the world, with Toyota's chairperson serving as a director. At the time, the UFJ was one of the largest shareholders of Toyota. As result of Japan's banking crisis, the UFJ merged again to become Mitsubishi UFJ Financial Group. In 2002, Toyota managed to enter a Formula 1 works team and establish joint ventures with French motoring companies Citroën and Peugeot, a year after Toyota started producing cars in France. On December 7, 2004,: ‘Toyota offered Sirius Satellite Radios’. However, as late as Jan. 27, 2007, Sirius Satellite Radio and XM Satellite radio kits were not available for Toyota factory radios. While the press release enumerated nine models, only limited availability existed at the dealer level in the U.S. As of 2008, all Toyota and Scion models have either standard or available XM radio kits. Major Lexus dealerships have been offering satellite radio kits for Lexus vehicles since 2005, in addition to factory-equipped satellite radio models.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR In 2007, Toyota released an update of its full size truck, the Toyota Tundra, produced in two American factories, one in Texas and one in Indiana. “Motor Trend” named the Tundra “Truck of the Year”, and the 2007 Toyota Camry “Car of the Year” for 2007. It also began the construction of two new factories, one to build the Toyota Rav4 in Woodstock, Ontario and the other to build the Toyota Highlander in Blue Springs, Mississippi.
Toyota philosophy Toyota’s management philosophy has evolved from the company’s origin and has been reflected in the terms “Lean Manufacturing” and “Just In Time Production”, which it was instrumental in developing. The Toyota Way has four components: •
Long-term thinking as a basis for management decisions,
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A process for problem solving,
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Adding value to the organization by developing its people, and
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Recognizing that continuously solving root problems drives organizational learning.
The Toyota Way incorporates the Toyota Production System.
The Toyota Production System Toyota has long been recognized as an industry leader in manufacturing and production. Three stories of its origin have been found, one that they studied Piggly-Wiggly's Just-In-Time distribution system, one that they followed the writings of W. Edwards Deming, and one that they were given the principles from an Army training program. It is possible that all are true. Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Regardless of the origin, the principles, described in Toyota's management philosophy, The Toyota Way, are as follows:
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Base your goals management decisions on a long-term philosophy, even at the expense of short-term.
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Create continuous process flow to bring problems to the surface
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Use “pulls” systems to avoid overproduction.
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Level out the workload.
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Build a culture of stopping to fix problems, to get quality right the first time
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Standardized tasks are the foundation for continuous improvement and employee empowerment.
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Use visual control so no problems are hidden.
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Use only reliable, thoroughly tested technology that serves your people and processes.
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Grow leaders who thoroughly understand the work, live the philosophy, and teach it to other. Develop exceptional people and teams who follow your company’s philosophy.
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Respect your extended network of partners and suppliers by challenging them and helping them improve.
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Go and see you to thoroughly understand the situation (genchi genbutsu).
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR •
Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
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Become a learning organization through relentless reflection and continuous improvement.
ACHIEVEMENTS OF TOYOTA Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries by becoming the largest seller of cars in the beginning of 2007, the most profitable automaker ($11 billion in 2006) along with increasing sales in, among other countries, the United States. Toyota has introduced new technologies including one of the first mass-produced hybrid gas-electric vehicles, of which it says it has sold 1 million globally (2007-06-07), Advanced Parking Guidance System (automatic parking), a four-speed electronically controlled automatic with buttons for power in addition, economy shifting, and an eight-speed automatic transmission. Toyota and Toyota-produced Lexus and Scion Automobiles, consistently rank near the top in certain quality and reliability. In the Fortune Global 500, Toyota Motor is the sixth largest company in the world. Since the recession of 2001, it has gained market share in the United States. Toyota's market share struggles in Europe where its Lexus brand has three tenths of one percent market share, compared to nearly two percent market share as the U.S. luxury segment leader. In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand for Corolla and Camry sedans. The difference in performance was largely attributed to surging demand for fuel-efficient vehicles.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR In November 2006, Toyota Motor Manufacturing Texas added a facility in San Antonio. Toyota has experienced quality problems and was reprimanded by the government in Japan for its recall practices. Toyota currently maintains over 16% of the US market share and is listed second only to GM in terms of volume. Toyota Century is the official state car of the Japanese imperial family, namely for the Emperor of Japan Akihito.
Global presence of Toyota Toyota has factories all over the world, manufacturing or assembling vehicles for local markets, including the Corolla. Toyota has manufacturing or assembly plants in 1) Japan 2) Australia 3) India 4) Canada 5) Indonesia 6) Poland 7) South Africa 8) Turkey 9) United Kingdom, 10) United States 11) France 12) Brazil 13) Pakistan Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR 14) Argentina 15) Czech Republic 16) Mexico 17) Malaysia 18) Thailand 19) China 20) Vietnam 21) Venezuela 22) Philippines 23) Russia.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
PROFILE OF
TOYOTA KIRLOSKAR MOTOR
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Mr. H Nakagawa, MD
Mr. M Kawabata, DMD
Mr. S Tomonaga, DMD
Toyota Kirloskar Motors is a joint venture between Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR TKM's growth since inception can be attributed to one simple, yet important aspect of its business philosophy - "Putting Customer First". While managing growth, TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs. TKM firmly believes that the success of this venture depends on providing high quality products and services to all valued customers through the efforts of its team members. TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together" philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims to further contribute to progress in the Indian automotive industry, realize greater employment opportunities for local citizens, improve the quality of life of the team members and promote robust economic activity in India. All Toyota employees are expected to embody these values in their daily work, including environmental protection activities. To "respect" the environment, we go to the source to identify and analyze problems ("Genchi Genbutsu"), move forward to "challenge" conventional ideas and old habits, to improve further ("kaizen") through "teamwork. These include greenhouse gas emissions, waste reduction, increased recycling and the banning of hazardous substance use in parts and components. These challenges will have inevitable consequences for Toyota's organization and employees, and we must balance them with our desire for future growth. In 1992, the Toyota Guiding Principles were established in direct response to the international initiatives agreed to at the Rio 'Earth Summit'. This summit focused on the potential for a clash between trade and environmental rules, and resulted in a statement of principles about forest management, conservation and sustainable development. The Toyota Guiding Principles are a cornerstone of their corporate management philosophy. These principles were updated in 1997, to ensure they continue to provide Toyota with a clear path towards achieving sustainable development. These principles have been explored and developed in Toyota's Global Vision 2010, adopted in April 2002, which proposes a series of long-term policies on the theme of "Innovation into the Future." Toyota's Global Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Vision 2010 guides management in its response to long-term social changes, combining consideration for the environment, the benefit to their customers of value-added products and the encouragement of their employees through shared prosperity and social involvement. Based on the Guiding Principles, which codify Toyota's business spirit, the Toyota Earth Charter (adopted in 1992 and revised in 1997) embodies a comprehensive approach to global environmental issues. It outlines Toyota's basic policy and action guidelines towards effective environmental management and improvements. The Toyota Earth Charter underlines a commitment to environmental excellence, not only through broad principles, but in concrete examples of what can be done through action guidelines. In connection with the Toyota Guiding Principles and the Toyota Earth Charter, a European Environmental Policy was developed as a means of linking principles, goals, targets and action plans with management structures and systems. TKM firmly believes that employees are the main source of strength for the organization. The human resources management in Toyota seeks to create a corporate culture where values such as "Continuous Improvement" and "Respect for People" are fully reflected in all actual corporate and individual activities. The company takes maximum care to ensure stability of employment and strives to improve working conditions. To develop human resources and improve the technical skills of its employees, TKM's young team members are regularly sent to Japan, Indonesia, and Taiwan for training programs. More than 425 team members have benefited from such programs at various Toyota plants worldwide. TKM also believes in continuously improving its products and practices. Every team member is encouraged to give suggestions to improve the product, efficiency of processes or working conditions. They are also appropriately rewarded for the same. Thus TKM seeks to progress by empowering its employees. The first Toyota automobile to be sold was the Qualis, which was a re-badge Toyota Kijang in the multi purpose vehicle (MPV) segment in January 2000. The name is said to have Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR been derived by combining quality and service. Due to the high quality, capacity and comfort, it soon became a best seller, selling over 21,000 units and garnering 35 per cent share in the segment. Today Toyota Kirloskar sells 4 car models in India. It stopped producing the Toyota Qualis to make way for the Toyota Innova, which was launched in India in 2005. The most expensive car from Toyota is a very powerful SUV - the Land Cruiser Prado.Toyota production system was born out of the need. The two main pillars that this system is based on are ‘just in time’ and ‘automation’. The Toyota production system relies on the absolute elimination of waste as essential. Toyota is by far the largest Japanese automotive manufacture , producing more than 4.5 million vehicles per year equivalent to one car manufactured every six seconds. Toyota’s plant in India is situated at Bidadi, Karnataka, which is a green belt. Toyotas commitment towards the environment is very high. Toyota all over the world provides a wide range of innovative reasonably prized high quality products through an exclusive dealer’s network with the best sales and after sales service at the global Toyota standards. Timely customer’s feedback through the service network also allows the company to respond to emerging customer needs and introduced new products tailored to the Indian market.
VISION STATEMENT “Contributing to Indian industry and economy, thorough technological transfer, human resource development and vehicles that meet the global standards at the cooperative price, Contributing to well being and stability of the team members. Contributing to the overall growth for our business associates and the automobile industry”. MISSION STATEMENT “Our mission is to design, manufacture, and market automobiles in India and overseas while maintaining the high quality that meets global Toyota quality standards, and offers superior value and excellent after sales service. We are dedicated to proving the highest possible level of value to the customers, team members, communities, and investors in India” Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Guided by principles of growing together Toyota group companies have contributed to the automotive industry in each country they operate in, through strong partnerships based on high level of localization and technology transfer along with manufacturing and sales activities. Toyota group of companies provide extensive know-how related to the product development, manufacturing and sales through the technological transfer to local co-operations. In addition, those corporations transfer technology to their affiliated companies. In this manner, manufacturing and sales level are steadily improved on a broad basis. Toyota products made in India have become interestingly competitive because of continual, compressive improvements made in operations. The introduction of the world famous Toyota production system and the progressive technology has advanced industrial innovation. Their professionals in manufacturing and sales contribute to higher competitiveness and the growth of the Indian industries in this Toyota’s Lexus and Toyota’ branded vehicles rank annually among the world’s highest quality cars in third party surveys of customer satisfaction.
Toyota Techno Park India A global first for Toyota Park India (TTPI), in Bidadi near TKM is a non-profit industrial infrastructure company conceived around the new Toyota Kirloskar motors automobile plant, TTPI’s objectives is to foster ancillary industries in India to help promote local industries through technological transfer and expand employment opportunities. Five joint ventures have already been established with Toyota group of companies in TTPI involving TK Kirloskar Automotive Ltd., Stanzen Logisticas center Pvt. Ltd and Tran system Logistics International Pvt.Ltd.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Toyota’s Concern Towards Environment, Technology & Employment Toyota is committed to manufacture technically advanced and environment friendly productions. Our plant at Bidadi surrounded by a green belt, meets high environmental standards and has also obtained ISO 14001 certificate on April 2001. Toyota has always believed that the best way to serve society by providing automobiles that will not only make people happy, but will also be the environmental friendly. Wastewater at TKM is collected purified to that can be used for fishponds and rise field. To realize high quality vehicle production at responsible prices, Toyota seeks the best balance between human resources and advanced robot technology.
Toyota Legacy (100 million vehicles) Toyota legacy –meeting the automotive need of more than 160 countries accumulated domestic production of 100 Million vehicles. By October 1999, Toyota had reached domestic production of more then 100 million vehicles and a worldwide cumulative production of about 112 million vehicles. Since its founding. This world-class records is proof of our continuing effort to satisfy customer expectations Research and development has made possible technological advancement in quality manufacturing, safety, efficiency, and environmental preservation all of which contribute to enhancing customer satisfaction.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
PROFILE OF
SHODHA TOYOTA
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
PROFILE OF
SHODHA TOYOTA
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Introduction to Shodha Toyota Shodha Toyota consists of following board of directors: •
Managing Director: Mr. Prasad Deshpande.
•
Chief Executive Officer: Mr.Ganesh Kumar Nair.
•
Director: Mr.Prakash Nayak. Mrs. Kalpana Kayak. Mr. Meghana Deshpande. Mr. S. Yamazaki, managing director, Toyota Kirloskar motors ltd, In the presence of the
honorable
minister
for
large
and
medium
industries,
Government
of
Karnataka
Mr.R.V.Deshpande, the Deputy Managing director to TKML, Mr.K.K. Swamy and Director of Marketing TKML Mr. ‘Aoki’ inaugurated the facility on 29 April 2001. The CEO Mr. Ganesh Kumar Nair heads Shodha Toyota, who look after all the 3s (i.e., sales service and spare parts) activities of the organization. Shodha Toyota is engaged in sale and service to Toyota vehicles, Shodha Toyota covers 12 district of north Karnataka. Mr. Prasad Deshpande and Mr. Nayak promote this dealership. The customer base includes industrial houses, businessmen, government departments and others. They have implemented quality management system accordance with 9001:2000 and they are in the process of obtaining the desired result to meet the international standards of the Toyota in India. Shodha Toyota is one of the first of its kind in Hubli similar to other dealership. Shodha Toyota is duly equipped with state of arts tools and equipments and necessary spare parts from the day of commencement of this operation. Shodha Toyota, Hubli is the latest to join the network of exclusively Toyota 3s dealership, which signifies sales, service, and spare parts under one roof, is the Toyota’s approach to the customer care service. The sales, service, and spare parts officers and the dealership have given extensive training by the Toyota.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR In Shodha Toyota they recruit the candidates by making the advertisements, reference etc., and they have only one selection process for candidates. Employees are satisfied with all the facilities in the company. Shodha Toyota is one of the leading dealer’s automobile in North Karnataka. The company has good market in the north Karnataka and rural area.
MISSION STATEMENT: “Total customer satisfaction as our mission” To achieve this we will always strive to improve processing continuously & deliver quality service as per customers needs and thus build customer for life.
OBJECTIVES:
The organization has framed a list of objectives to reach the mission statement. Managing director in co-ordination with General Manager has defined following quality objectives for Shodha Toyota.
•
To understand and define the customer vehicle requirement clearly and executing the order as per the sales process to achieve 100% customer satisfaction.
•
To procure the spare parts and Materials from approved suppliers & keep the optimum stock levels so that customer requirements are fulfilled.
•
To understand and define customer service needs clearly and executing them as per service processes, as to achieve 100% customer satisfaction
•
To allocate work to competent personnel and improve their competences through effective training.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
•
To improve the processes continuously at every opportunity
•
To maintain pressure free environment, hygienic facilities and clean atmosphere with an aim to serve the people and society.
•
To meet the requirements all interested practiced viz., suppliers, directors, employees.
•
Toyota Kirloskar motors ltd., suppliers, statutory and regulatory bodies with an aim to enhance stakeholders satisfaction.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
DEPARTMENTS OF SHODHA TOYOTA The Shodha Toyota consists of three departments. 1. Human resource department 2. Sales department. 3. Service departments.
HUMAN RESOURCE DEPARTMENT Recruitment: “Recruitment is the process of searching for prospective employees and stimulating and Encouraging them to apply for the job in the organization” Recruitment represents the first Contact a company has with potential employees.
Objectives: •
To determine the present and future requirements of the organization in conjunction with the personnel and job analysis activities.
•
Increase the pool of job candidates with minimum cost
•
Mutt the organizations legal and local obligations regarding the composition of its work force
•
Increase organizational and individual effectiveness in short and long term.
•
Start identifying and preparing potential job applicant who will be appropriate candidates.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR •
Evaluate the effectiveness of various recruiting techniques and source fro all types of the job applications.
Source of Recruitment: Source of the recruitment in Shodha Toyota is classified into two brand categories Internal Sources:
External sources:
a. Promotions
Press advertisements a. . Placement agencies b. .Unsolicited applications c. . Recommendations d. . Employee referrals.
Selection: Selection is the next step to the recruitment this is the logical step to sleeting the qualified and competent people to fill the job in the organization. Selection process: In Shodha Toyota, they have only one step in the selection process. They conduct one interview to the candidate on that interview they select the candidates.
Functions of HR Manager •
Issuing appointment letters to the new employees and collecting necessary certificates.
•
Induction training for the newly receipted employees
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR •
Issuing I-cards to new employees
•
Maintaining attendance register
•
Maintaining the list of newly joined and dropped out employees in the last week of every month.
•
Issuing inter office notice/circular whenever necessary
•
Make entry the details of PF and ESI contribution for every month.
•
Notification of national and festival holidays
•
Earned leave maintenance.
•
Organizing training as per the training schedule
•
Preparing leave plan for service staff every 45 days
•
Sending I HT-soft copy Report to TKM Bangalore, before third of every month and hard copy reports should be sent before 10th of every month.
•
Submitting sales status report to TKM by 30th / 31st of every month
•
Submitting PF and ESI returns.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
SALES DEPARTMENT
Sales manager Assistant sales manager (6.dist)
assistant sales manager (6. Dist)
It is an important part of Shodha Toyota .The Toyota sales process has six modules. These modules include: •
Preliminary activities
•
Approach and qualifying
•
Presentation and demonstration
•
Negotiating and closing
•
Delivery
•
Follow up.
1). Preliminary activities include: Collection of the customer databases of the customers and generation of the yearly sales target activity takes place. The general manager and the sales manager take care of this activity. Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Sales target are set for particular year further it also includes the monthly sales planning which depends on the ability of the sales officers and the potential area for the monthly sales target will be allocate to each of the sales officers. 2). Approach and qualifying: Sales Territory of Shodha Toyota is distributed within 12 districts. Each district has one assistant sales manager who collects the information of the customers and inform the sales manager. Here then the sales manager sends direct mail advertising about the vehicle to the customer. Qualifying includes whatever the customer is a potential buyer. People may be targeted according to their standard of living destination and their ability to pay. 3). Presentation and demonstration: Once the customer approaches the showroom the presentation demonstration activity is carried out. This activity includes of the vehicles and features such as safety and security, style design interiors information regarding the engine. 4). Negotiating and closing: The customer decides to buy the vehicles the sales manager negotiates with him and further documentation takes place. Once the customer is satisfied the deal is closed he will be given some other trial benefits like financial options, free on year insurance etc. 5). Delivery: After the execution of the above mentioned activities delivery of vehicles, take place. 6). Follow up;
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Responsibility of the show room extent not only after sales, but there is an extended courtesy which includes a phone from the sales department on 3 rd day, followed by a “Thank you letter” along with a phone call by the sales manager and a photograph taken on the date of delivery of the owner.
Responsibilities of the sales manager •
To plan and set the target and sales of vehicles.
•
Monitoring daily targets of all sales officers.
•
Conducting sales meeting regularly.
•
Monitoring daily customer /weekly report enquires.
•
Ensuring effective territory coverage by the sales officers.
•
Achievement of the sales target.
•
Identifying the inventory for event/ promotional activities with TKM.
•
Coordinating for customer relation management.
•
Motivating sales officers, their performance review and periodic appraisal.
•
Coordinating training program to ensure show room house keeping, perfect condition of the display vehicles and test-drive veneries.
•
To attend management review meeting and indicating corrective and preventive actions.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Service department: Head customer service, heads workshop or servicing department he is assisted by a service manager 3 service advisors, a controller and parts in charge then assist the service manager gives it to any of the advisors, who then prepares a job card, jots all the problems, what the customers complaints are about. He then advises for the repair, replacement, and the further process of repairs. General check up starts when the responsibility would be handed over to the chief technicians who carry on the work and after all mechanical work is completed, the vehicle is sent to washing where, the outer body is given the water wash and the interiors are given air blow. In the same way, accidents cases are dealt with and the procedures of repair goes hand in hand with the insurance agent who inspects the vehicle and then gives orders for the further repairs. On an average 15 vehicles are serviced in a day.
Functions of Service Manager: This service manager is the leader of the dealer service workshop He is responsible to: •
Plan, lead, organized and control the service department.
•
Analyze and ensure customer satisfaction
•
Direct staff towards the customer oriented thinking
•
Coordination service and ware house operation
•
Observe dealership guidelines and fulfill the manufacturer’s priority tasks.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
•
Generate profit for the dealership, monitor cost effectiveness, analyze major service
•
Manage service shop infrastructure, environmental and safety issues
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
RESEARCH METHODOLOGY
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
THE MARKET REASEARCH PROCESS STEP 1: Definition of the problem and research objectives. The problem was “Why people / customers do not prefer to buy Toyota cars in the month June/ July every year? Objectives: •
Spot the reasons why people do not purchase cars in the month June/July every year.
•
To make out what will stimulate customers to purchase cars during the above-mentioned months.
STEP 2: Development of research plan: This step called for developing the most efficient plan for gathering the needed information. Designing the research plan necessarily included decision on . •
Data source.
•
Research Approach
•
Research Instruments
•
Sampling plan
•
Contact methods
Data sources The source of data that were used in this research was both Primary and Secondary. •
Primary Data:
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR This is the data which is been collected for the first time (Newly). Here, the primary data was collected through the surveys and personal interactions with the customers. •
Secondary Data: This is the data which is already been developed by someone for some research. Here, the
secondary data is collected through instruments such as Newspaper, Magazines. Research approach: This includes the approach or the ways undertaken to collect the primary data. Here, the approach was made through survey research, this helped to learn about people / customer’s knowledge, beliefs, preferences in car buying decision especially in month June/July. Research Instrument: The following are the instrument with the help of which the data is collected: In this regard, the data was collected through questionnaire. It contained a set of questions presented to respondents for their answers, because of its flexibility the questionnaire was selected as the primary means to collect the primary data. It was carefully developed, tested, and debugged before it was administered on a large scale. Major content of this questionnaire was closed end questions along with few open-ended questions. Sampling Plan: This plan called for three decisions which are as follows: •
Sampling unit: Here the sampling unit was combination of walk in customers (from May to july) and
warm customers of Shodha Toyota. •
Sample size: The sample size was 60.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
•
Sampling procedure / Method: The sampling method used here was “Convenience Sampling”.
•
Contact method: The contact method used were Questionnaire Personal interview Telephone
Area of survey: The area which was covered under survey was “North Karnataka” (12 Districts) which includes: Hubli, Dharwad, Gulburga, Bellary, Haveri, Hospet, Bijapur, Belgaum, Bidar, Davangere, Bagalkot, Gadag and Raichur.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
ANALYSIS AND INTERPRETATION
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR 1). How did you come in contact with shodha Toyota?
How did you come in contact with shodha toyota?
Valid
Frequency 3 4 47 1 2 57
Sales person News paper Telephone others 7 Total
Percent 5.3 7.0 82.5 1.8 3.5 100.0
Valid Percent 5.3 7.0 82.5 1.8 3.5 100.0
Cumulative Percent 5.3 12.3 94.7 96.5 100.0
82.48%
Series1
5.26% Sales person
7.02% News paper
0.00%
Personal visit
0.00%
Internet Campaign
5.26% others
Graph.1 Interpretation Here we find that 82.48% of customers come in contact with Shodha Toyota through personal visit ,7.02 through Newspaper,5.29% through sales person & 5.26% through other means.
2). Who influence you most to select a car ?
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Graph.2 Interpretation Here we find that 32% of customers get influenced by family members to buy a car, followed by self with 25%, Friends 20%, Relatives 7%,Neighbours 8%.
3). How many cars do you own ?
Valid
one Two More than two None Total
Frequency 20 13 15 9 57
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Percent 35.1 22.8 26.3 15.8 100.0
Valid Percent 35.1 22.8 26.3 15.8 100.0
Cumulative Percent 35.1 57.9 84.2 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
One, 35.09% More than Two, 26.32% Two, 22.81%
Series1 None, 15.79%
Graph.3 Interpretation Among the total Toyota prospectus taken under consideration 35.09% already own a car,26.32% own more than two cars,22.81% own two cars, remaining 15.79% own no cars.
4). Have you purchased the car ?
Valid
yes no Total
Frequency 7 50 57
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Percent 12.3 87.7 100.0
Valid Percent 12.3 87.7 100.0
Cumulative Percent 12.3 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
87.72%
No
Series1
Yes
12.28%
Graph.4 Interpretation Among total prospectus taken under consideration 12.28% had already purchased the car,where as remaining 87.72% did not purchase . 4(a)].If yes in which month did you buy ?
Valid
Missing Total
June July Total System
Frequency 5 2 7 50 57
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Percent 8.8 3.5 12.3 87.7 100.0
Valid Percent 71.4 28.6 100.0
Cumulative Percent 71.4 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
June, 71.43%
Series1 July, 28.57%
Interpretation Among the customers who had purchased ,71.43 % of purchasing took place in June Month, followed by 28.57 % in July month . 4(b)]. If no in which month are you going to buy ?
Valid
Missing Total
july August September After september Not intrested Total System
Frequency 4 18 13 13 5 53 4 57
Percent 7.0 31.6 22.8 22.8 8.8 93.0 7.0 100.0
Valid Percent 7.5 34.0 24.5 24.5 9.4 100.0
Cumulative Percent 7.5 41.5 66.0 90.6 100.0
Aug, 33.98%
After sept, 24.53% Sept, 24.53%
Series1
July, 7.55%
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Interpretation Among the 88% of the prospects who did not purchased the car where planning to purchase in forthcoming months in which 33.98% where purchasing in August month,24.53% in Sept month,24.53% after sept,and negligible of 7.55% in July month.
5). What is the reason for not buying in July Month?
Valid
Monsoon season Ashad period Price hikes Personal reason Ready to buy cozof some good days Total
Frequency 1 22 5 23
Percent 1.8 38.6 8.8 40.4
Valid Percent 1.8 38.6 8.8 40.4
Cumulative Percent 1.8 40.4 49.1 89.5
6
10.5
10.5
100.0
57
100.0
100.0
Personal
Product oriented reason, 40.35%
Ashad period, 38.60%
Series1
Moonsoon season, 1.75%
Price hikes, 8.77%
No good schemes, 0%
Graph.5 Interpretation Among the various reasons given by the customers for not buying in July month, Product oriented reason accounted for 40.35%, followed orthodox / religious beliefs ( so called Ashad Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR period as per Hindu calendar) with 38.60% ,Price hikes ( 8.77%) ,Monsoon season ( 1.75%) . In depth enquiry also bared that 10.53% of customers were ready to buy inspite of believing in Ashad period, because they believed that there are few good days even in this period
6). How much do you believe in ‘Ashad period’?
Valid
Strongly believe Believe Neither believe nor disbelieve Disbelieve Total
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Frequency 17 12
Percent 29.8 21.1
Valid Percent 29.8 21.1
Cumulative Percent 29.8 50.9
2
3.5
3.5
54.4
26 57
45.6 100.0
45.6 100.0
100.0
Disbeliebve, 45.61% Strongly believe, 29.82% Series1
Believe, 21.05%
Neither believe nor Strongly disbelieve, disbelieve, 3.51% 0% Strongly believe
Believe
Neither believe nor disbelieve
Disbeliebve
Strongly disbelieve
Graph.6 Interpretation Here it was found that 29.82% strongly believed in Ashad,21.05% believed ,3.51% neither believed nor disbelieved followed by 45.61% who disbelieved and finally there were none who strongly disbelieved i.e. 0% . Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
7). Why do you believe in Ashad period?
Valid
Frequency 4 24 2 27 57
Majority of people believe Elders in family believe others reasons none Total
Percent 7.0 42.1 3.5 47.4 100.0
Valid Percent 7.0 42.1 3.5 47.4 100.0
Cumulative Percent 7.0 49.1 52.6 100.0
none, 47.37%
elders in family believe, 42.11%
Series1
Some bad prior experience, 0%
Majoritty of people believe , 7.02%
other reason, 3.51%
Graph.7 Interpretation Further enquiry revealed that 42.11% of customers believed because elders in their family believe, followed by 7.02% who believed because majority of people believe ,3.51% believed because of other reason
8). What would motivate you to buy the car during this ashad period ?
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
50.00% 45.00%
Discounts 45.61%
40.00% 35.00% 30.00% Free insurance 21.05%
25.00% 20.00% 15.00%
Less financial rates 17.54%
10.00%
Offers 7.02%
5.00% 0.00%
Graph.8 Interpretation Among the factors that would motivate the customers to purchase the car even in ashad period, Discount was the top most factor accounting for 45.61% Followed by free insurance with 21.05% ,Fess financial rates with 17.54% and offers with 7.02% . 9). Customers from which professional background believe the most in Ashad?
Believe Politics
2.70%
Police
4.70%
Service
4.70%
Bussiness
27.30% 10.90%
travels
5.50%
Agriculture Engineer Doctor
Believe
3.60% 1.80%
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Graph;9 Interpretation Here we find that customers from business background were the major believers of ashad period comprising 27.30%,followed by customers who owned Travel business with 10.9%, agriculture background with 5.50%,Job holders and Police with 4.70%,engineer with 3.60%,doctor with.80%. 10). Are you aware of inflation ?
No, 1.72%
Yes, 98.25%
Valid
Yes No Total
Frequency 56 1 57
Percent 98.2 1.8 100.0
Valid Percent 98.2 1.8 100.0
Cumulative Percent 98.2 100.0
Graph.10 Interpretation: Among the considered prospectus of Shodha Toyota 98.25% were aware of inflation ,followed by 1.72% who were not aware .
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR 11). To what extent do the inflation and price hikes matter if you are going to buy a car ?
Valid
Frequency 5 12 35 5 57
Very great extent Considerable extent Very less extent Will not matter at all Total
Percent 8.8 21.1 61.4 8.8 100.0
Valid Percent 8.8 21.1 61.4 8.8 100.0
Cumulative Percent 8.8 29.8 91.2 100.0
70.00% 60.00% 50.00% 40.00% Series1
30.00% 20.00% 10.00% 0.00% Very great extent
considerable extent
very less extent
dose not mater at all
Graph.11 Interpretation 8.72% of customers said that to very great extent inflation had negative impact on their decision, followed by 21.05 who said the impact was to considerable extent,61.40% said it was to very less extent, finally 8.77% said it did not matter at all.
12). What would motivate you to buy car in inflation ?
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
30% 25% 20% 15%
Series1
10% 5% 0% offers
cash discounts free insurance
less finance rates
others
Graph.12 Interpretation: Among those who said that inflation had negative impact to very great extent on their decision to buy a car, expressed that cash discounts would motivate them to a very great extent to buy car under such condition accounting for 26% ,followed by free insurance with 8% and less financial rates with 7%.
13).Is your business effected by inflation?
Valid
yes No Total
Frequency 31 26 57
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Percent 54.4 45.6 100.0
Valid Percent 54.4 45.6 100.0
Cumulative Percent 54.4 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
No, 45.61% Yes, 54.39%
Graph.13 Interpretation: Since majority of Toyota’s customers are from business background an attempt was made to find whether their business had been effected by inflation .Therefore it was found that 54% of customers business was effected followed by 46% who’s business was not effected . 14). Does this effect your car buying decision?
Valid
yes No Total
Frequency 8 49 57
Percent 14.0 86.0 100.0
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Valid Percent 14.0 86.0 100.0
Cumulative Percent 14.0 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Yes 14%
No 86%
Graph.14 Interpretation: Though majority of customers business was effected by inflation ,it didn’t effect their car buying decision. Therefore, it was found 86% customers saying no followed by 14% who said yes.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Testing Of Hypothesis Ho: Personal reason of the customers and their belief in Ashad period is independent of each other. H1: Personal reason of the customer and their belief in Ashad period are dependent on each other. Case Processing Summary
N Reason for not buying in july * Extent of believe in ashad period
Reason for not buying in july
Total
Monsoon season
Valid Percent 57
100.0%
Count Expected Count Ashad period Count Expected Count Price hikes Count Expected Count Personal reason Count Expected Count Ready to buy cozof Count some good days Expected Count Count Expected Count
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Cases Missing N Percent 0
.0%
Total N
Percent 57
100.0%
Extent of believe in ashad period Neither Strongly believe nor believe Believe disbelieve Disbelieve 0 0 0 1 .3 .2 .0 .5 14 8 0 0 6.6 4.6 .8 10.0 0 0 1 4 1.5 1.1 .2 2.3 2 3 1 17 6.9 4.8 .8 10.5 1 1 0 4 1.8 1.3 .2 2.7 17 12 2 26 17.0 12.0 2.0 26.0
Total
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1 1.0 22 22.0 5 5.0 23 23.0 6 6.0 57 57.0
IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Chi-Square Tests
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
Value 40.022a 49.952 19.835
12 12
Asymp. Sig. (2-sided) .000 .000
1
.000
df
57
a. 16 cells (80.0%) have expected count less than 5. The minimum expected count is .04.
Conclusion: We reject Null Hypothesis since the two sided significance reported in the last column and in the row of Pearson’s Chi-square is less than 0.05. Therefore, we conclude that there is significant relation ship between personal reasons of the people and their belief in the Ashad period at 5% level of significance.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Sales Effectiveness Findings & Analysis 1). With which category of students you spend maximum Time ?
Valid
Missing Total
New refferal customers Competitors customers Total System
Frequency 3 4 7 1 8
Percent 37.5 50.0 87.5 12.5 100.0
Valid Percent 42.9 57.1 100.0
Cumulative Percent 42.9 100.0
competitors customers, 57.14% New refferal, 42.88% Series1
Existing customers, 0%
None, 0%
Graph.15 Interpretation: The above analysis reveals that Maximum No.Sales executive for about 57.14% spend maximum time with competitors customers ,and 42.88% of them spend maximum time with New Referrals.
2). How many referrals customers you meet in a day ?
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
More than two, 42.88%
One, 28.57% Series1
Two , 14.29%
Don’t find every day , 4.29% None, 0%
Graph.16 Interpretation: Here, we find that Maximum of sales executive ,about 42.88% meet more than one customers a day, 28.547% of them meet one customer a day ,14.29% of them meet two customer a day , followed by 4.29% who say that they don’t find new referrals every day . 3). What are the common demands made by customers usually while purchasing a car ?
100% 80% 60% 40%
Free financial rates
20%
Freeinsurance
0%
Free accessories nt rta po im un .. ry p. t m ve n ri rta no po nt m rta ni U po im er th ei N nt rt a nt po
Im
ry ve
Good offers
Im
Good discount
rta po
Garph.17 Babasabpatilfreepptmba.com
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR Interpretation: Here, it is found that among the demands made by the customers to sales peopleat the point of selling a car, cash discounts is ranked first i. e 57.14% of sales people say that max no. of customers demand for discount. Further, 14.29% rank good offer as top most demand, 14.29% say Free insurance is the most important demand And finally less finance rates is found to be said as important demand by 14.29% of sales executive. 4).What are the challenges you face with customer while selling the product?
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Difficulty in convincing Unable to provide desired accessories Communication problem
p im
nt
nt rt a po im un ry ve nt rt a nt po rt a im po or im tn Un an ort
er ith Ne
ta or mp
nt rta po Im
I ry ve
Unable to provide desired colour Unable to provide discounts
Graph.18
Interpretation: Among the challenges faced by the sales executive the top challenge is of providing discounts demanded by the customers, which accounts for 100 %, followed by challenge of providing desired accessories accounting for14.29%, then Supply of desired colour with 28.87% 5). Do you have the feeling of incompetence in meeting higher end customers?
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Valid
Missing Total
yes No Total System
Frequency 1 6 7 1 8
Percent 12.5 75.0 87.5 12.5 100.0
Valid Percent 14.3 85.7 100.0
Cumulative Percent 14.3 100.0
No, 85.71%
Yes, 14.29%
Graph.19 Interpretation: Most of the sales executive do not have the feeling of incompetency in meeting higher end customers which accounts for 85.71%,with 14.295 as exceptional . 6). If yes why do you feel that?
Frequency Valid
Missing Total
Because of no proper response Do not feel Total System
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Percent
Valid Percent
Cumulative Percent
1
12.5
14.3
14.3
6 7 1 8
75.0 87.5 12.5 100.0
85.7 100.0
100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
No proper response, 14.29%
Series1
Bad treatment, 0%
Unable to reply them with proper respponse, 0%
Graph.20 7). Are you satisfied with support and co-operation with top management?
Valid Missing Total
yes System
Frequency 7 1 8
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Percent 87.5 12.5 100.0
Valid Percent 100.0
Cumulative Percent 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
1 0.8 0.6 0.4 0.2 0
1
2
Series1
0
0
Series2
100%
0%
3
Graph.21 Interpretation: Cent percent of them responded positively about their satisfaction with support and co operation from Top management.
8). Are you satisfied with salary and incentives ?
Valid
Missing Total
yes No Total System
Frequency 5 2 7 1 8
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Percent 62.5 25.0 87.5 12.5 100.0
Valid Percent 71.4 28.6 100.0
Cumulative Percent 71.4 100.0
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Yes
No, 28.57%
Graph.22 Interpretation: Enquiry of level of satisfaction with existing salary and incentives revealed that 71.43% of sales executive are completely satisfied ,whereas 28.57% of then expressed dissatisfaction . 19). If no what are your expectation?
Valid
Missing Total
Hike in salary no more expectation Total System
Frequency 2 5 7 1 8
Percent 25.0 62.5 87.5 12.5 100.0
Valid Percent 28.6 71.4 100.0
Cumulative Percent 28.6 100.0
Interpretation: When the dissatisfied sales executives i.e., 28.57% when asked about their expectation ,they insisted on getting hike in salary .
10). Do you think that you require still more training to improve your selling skills?
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Valid
Missing Total
yes No Total System
Frequency 6 1 7 1 8
Percent 75.0 12.5 87.5 12.5 100.0
Valid Percent 85.7 14.3 100.0
Cumulative Percent 85.7 100.0
Graph.23 Interpretation: 85.71% of sales executive revealed that they require training badly where as 14.29% of them said they do not require it. 12). If yes in which area you desire to be trained.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
120.00%
100%
100.00%
85.71%
85.71%
80.00%
71.43%
71.43%
Yes
60.00% 14.29%
No
14.29% 0.00% In house product knowledge
Competitors product knowledge
Effective communication
0.00%
Effective sales presentation
20.00%
28.57%
28.57%
Time management
40.00%
Graph.24 Interpretation : Out of the total 85.71% who expressed their need to be trained,insisted that the area in which they want to be trained is o Competitor’s product knowledge o In house product knowledge ( including technical aspects) 13). How many customers you loose on an average in a month because of : Graph.25
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Recognition of top management financial rewards
Ne i
the r
im
ve ry I
m
po r ta
nt Im po p. .. rta nt no r. .. Un im ve po ry rt a un nt im po rta nt
Co-operation and support from the company Achievable targets
14). What will motivate you most to sell more cars ? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Co-operation and support from the company Achievable targets Recognition of top management very Important
Neither important nor important
very unimportant
financial rewards
Graph.26 Interpretation: The research also explored the fact that the factor that motivate sales executive to sell more cars is “Financial reward� accounting for 71.42% followed by recognition by Top Management with
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR 35.73%, the next immediate factor is achievable targets accounting for 14.285 ,and finally co operation and support from top management with 35.71%.
FINDINGS
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
CUSTOMER’S PERSPECTIVE
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR The main factor that influences the customer to buy car is family (32%), followed by self (25%), friends (20%), Relatives (7%), neighbors (8%) . Product oriented reason was the major reason for not buying , accounting for40.35% ,followed by religious beliefs (So called Ashad period as per Hindu calendar ) with 38.60%, Price hikes(8.77%), monsoon season (1.75%). 10.53% of customers among 38.60% of Religious believers where ready to buy because that there are few good days even in such periods. 29.82% where found to be strongly believed, 21.05% just believed,3.51% neither believed nor disbelieved,45.81% disbelieved.0% strongly disbelieved. The believe was mainly because of Elders in the family believe. Majority of people believe. Cash discounts was found to be the top most motivating factor accounting for 45.61 % ,followed by free insurance with 21.05%,Less finance rates with 17.54% and accessories package with 7.02% .
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Sales Effectiveness Perspective •
Among the challenge faced by the sales executive the top most challenge is of providing discounts demanded by the customers which accounts for 100%, the next immediate challenge faced by them is of providing desired accessories which accounts for 42.88%, followed by providing desired colour accounting for 28.77%
•
85.71% of sales executive revealed that they require training badly where as hardly 14.29% of them said they do not require.
•
Out of the total 85.71% who expressed their need to be trained, required training in the area Of :
•
Competitors Product Knowledge
•
In house product knowledge
•
The factors that highly motivate them to sell more cars is Financial reward
accounting
for 71.42%,followed by Recognition by top management which accounts for 35.73%,the next immediate factor is Achievable targets with14.28%,finaly co –operation from top management as for 35.71% . •
Sales people are very reluctant to any changes or implementation of new strategies
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Competitors Perspective •
85.71% of sales executive revealed that they require training badly where as hardly 14.29% of them said they don’t require.
•
It was found that even the competitors are facing the same problem .
•
Competitors also believed that the cause for this is people’s religious beliefs
•
The promotional activities carried out by them were moderate i.e., no extra efforts were made to overcome the problem.
•
Majority of them prefer to adopt ‘wait and see strategy’, because they believed that the sales will reach its peak point in the month of August that would definitely compensate for variation in the sales and thus Revenue in this Two months
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
Company’s Perspective •
It was found that company is lacking in its efforts ( Promotional activities) to maintain the sales figures in the month June-July.
•
In fact it was found that the company even withdraws the usual discount pattern because of decrease in sales in this two months
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RECOMMENDATION
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In connection with sales officers •
Sales executives should generate not less than 3 enquires of customers a day. This effort would at least result in converting adequate them to Toyota customers .This calls for spending Maximum time with the existing Toyota customers.
•
When seasonality and Orthodox beliefs of the people is main cause for decrease in sales in the month June–July, then the company should “Capture the competitor’s market share”. To accomplish this the sales officers need to meet the competitor’s existing customers (Tavera / Scorpio) & skillfully generate new enquires from them there buy converting them into Toyota customers.
•
This calls the company to make extra efforts to train the sales force to develop the required skills, which in fact build confidence in them, thus making them realize the task as realistic one. Then training should be given essentially in the field of competitor’s product knowledge and in- house product knowledge including technical aspects.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
In connection with Customers: •
When analyzed the problem from different angles, the common findings, it was found the factors that would motivate the customers to change their mindsets are “Good discounts”. Providing good discounts in this case would be 25% increase from usual discount pattern in this two months which is Rs 20,000/-,thus discounts should be increased .
•
Company should give special Service warranty extending it to 1,50,000 Km as compared to 1,00,000 to the customers who are purchasing the vehicle in these two month .
•
In addition, the company should also launch schemes offering Less financial rates to the customer who would like to buy the vehicle on installment basis. In this regard the company can negotiate with the banks with whom they have tied up.
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CONCLUSION
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Conclusion The customers who were reluctant to change their mindsets four years back are today ready to change, provided the company make some efforts to motivate them. The company can therefore effectively gear up to root out the problem faced by it from many years. Though, in long term the company can divert its concern towards product oriented problems, thus making its growth path hassle free.
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
BIBILOGRAPHY
• Marketing Management ( Philip Kotler ). • Statistical techniques (Gaur). • Icfai journals. •
News Papers (Bussiness standard ,Economic Times ).
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IDENTIFICATION OF THE REASONS FOR VARIATION IN SALES DURING THE MONTHS JUNE & JULY EVERY YEAR
ANNEXURE
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