TERM PAPER OF

CUSTOMER RELATIONSHIP MANAGEMENT

ON

CRM OF HYUNDAI MOTORS PRIVATE LIMITED

SUBMITTED BY SUBMITTED TO

MOHD ASHAD Mr. AMRISH DOGRA

ROLLNO- RT1901B43

REG. NO- 10901750

PROGRAME CODE-: 194

LOVELY PROFESSIONAL UNIVERSITY’

JALANDHAR “PUNJAB”

TABLE OF CONTENT

1) INTRODUCTION OF HYUNDAI MOTORS PRIVATE LIMITED

2) PRODUCT SERVICE AND CRM INITIATIVE OF HYUNDAI MOTORS PRIVATE LIMITED

3) SALES FORCE.COM LEADS4) VARIOUS CRM TECHNIQUE USED BY HYUNDAI

MOTORS PRIVATE LIMITED AND WHAT TECHNIQUE SHOULD USE TO IMOROVE CRM INITATIVE

5) RECOMMENDATION6) CONCLUSION7) REFERENCE

1) INTRODUCTION OF HYUNDAI MOTORS PRIVATE LIMITED

Hyundai Motor Company (Korean: 현대, Hyŏndae, IPA: [hjə́�ː ndɛ],[1] modernity; KRX: 005380) is a Korean automaker which along with Kia comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009.[2] As of 2009, it is the world's fastest growing automaker.[3][4] In 2008, Hyundai (without Kia) ranked as the eighth largest automaker.[5]

Headquartered in Seoul, South Korea, Hyundai operates the world's largest integrated automobile manufacturing facility[6] in Ulsan, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms worldwide.

The Hyundai logo, a slanted, stylized H, symbolizes the company shaking hands with its customer.[7]

Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor Company in India. It is the 2nd largest automobile manufacturer in India after Maruti Suzuki.

Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor Company of South Korea. When Hyundai Motor Company entered the Indian Automobile Market in 1996 the Hyundai brand was almost unknown throughout India. During the entry of Hyundai in 1996, there were only five major automobile manufacturers in India, i.e. MUL, HM, PAL, TELCO and M&M. Daewoo had entered the Indian automobile market with Cielo just three years back while Ford, Opel and Honda had entered less than a year back.

Type SubsidiaryIndustry AutomotiveFounded 6 May 1996Headquarters Chennai, IndiaKey people Mr. H.W. Park, MDProducts AutomobilesParent Hyundai Motor CompanyWebsite www.hyundai.co.in

2) PRODUCTS SERVICES AND CRM INITIATIVE OF HYUNDAI MOTORS PRIVATE LIMITED

All cars models of Hyundai in India

Accent

Price Range:

5.00 to 5.37 lacs

Get on-road price

i10

Price Range:

3.54 to 5.95 lacs

Get on-road price

i20

Price Range:

4.55 to 7.51 lacs

Get on-road price

Santa Fe

Price Range:

20.95 to 22.95 lacs

Get on-road price

Santro Xing

Price Range:

2.76 to 3.87 lacs

Get on-road price

Sonata Transform

Price Range:

14.63 to 17.14 lacs

Get on-road price

Verna

Price Range:

6.58 to 9.24 lacs

Get on-road price

HUNDAI MOTORS SERVICES AND CRM INITIATIVE

Telephone Nos. :

1800-11-4645 (Toll Free - Only from MTNL & BSNL numbers)

 098-7356-4645 (For all GSM Connections / Landline other than MTNL & BSNL numbers)

 

Please fill in your enquiries / Feedback on the below links.

Enquiries

Sales :Enquiries related to Company Information, price enquiry, Sales dealer, New products launch etc.

Services :Enquiries related to Services dealer, Service schedule, Parts sales etc.

Feedback

Sales :Grievances related to pre and post delivery of new vehicle.

Services :Grievances related to dealer service, product and parts.

 

If for any reason, you are not able to register your enquiry/feedback, please email us at cr@hmil.net

Always Around

With the novel idea of ‘Always There, Because We Care’ , Hyundai Motor India Ltd, the country’s largest passenger car exporter and the second largest car manufacturer, organizes a nationwide service initiative called - ‘Always Around’ campaign. The campaign in its mega avatar was organizes for the third consecutive year in 2009.

The campaign started from November 8th provided free check-ups for Hyundai customers at convenient locations. In the year 2008 around 80,000 Hyundai vehicles across 6,000 locations attended the camp.

The ‘Always Around’ campaign over the years has grown much wider in terms of locations and reach and will continue till December, 2010 covering more than 6,500 locations wherein Hyundai will be reaching out to around 90,000 customers in an effort to make them smile by ensuring that their car is in the best of condition. Around 4,000 vehicles across 270 locations nationwide attended the camp on the launch day itself on 6-Nov 2009.   The mega ‘Always Around’ campaign is conducted at various locations which customers in their normal course of life frequent on an everyday basis like Joggers Park, Shopping Malls, Apartments, Multiplexes, etc. The ‘Always Around’ campaign is truly innovative one as it reaches out to the customers at a time and a place where it is most convenient for them and at no extra cost. For example, while the customer might be busy shopping in a mall, his car is serviced and cleaned which saves both his time and money as it is a free service, and the advice that he gets from trained technicians helps

him maintain his car even better. Along with the camp various value added services and schemes are offered e.g customer Referral Scheme, Hyundai Advantage, Health Check-Up Camps, customer education towards improving the vehicle mileage/performance, information related to Hyundai products, etc are also part of this campaign.     Last year the ‘Always Around’ campaign will offer a comprehensive 17 point check-up and a thorough examination of the vehicle and services such as tyre and vehicle polishing, coolant and oil top-up. The Hyundai team will also collect suggestions and feedback on the performance of the vehicle & after sales service. The customers will also have a chance to see and test drive the latest Hyundai cars which would be there on display at the venue.    

24x7 Road Assistance

Hyundai Road Side Assistance ProgrammeHyundai Road Side Assistance Programme is a 24x7 emergency support provided in the event of any mechanical or electrical breakdown and or traffic accident of a vehicle. It is an initiative to increase the HMIL’s focus on its customers. The Road Side Assistance Program was launched with the aim of providing emergency road side assistance services round the clock to ensure a pleasurable and uninterrupted journey virtually anywhere in

India. The program is designed to enhance the customer ownership experience and ensure that customers get immediate and hassle free service in the event of any car breakdown.

The scheme will be available as a complimentary service with new vehicles for two years starting February 1, 2010, while existing customers will be offered this option at the best rates. The 24×7 Road Side Assistance program covers services such as: wheel change, fuel delivery up to 5 litres, taxi co-ordination, opening the vehicle in the event of a key lock-out, rectifying electrical problems related to the battery and fuse, on-spot repairs for complaints that can be attended to on site and car towing to the nearest workshop in cases of an accident or breakdown.  

 

Free Car Care Clinic

3) SALES FORCE.COM LEADS

4) VARIOUS CRM TECHNIQUE USED BY HYUNDAI MOTORS PRIVATE LIMITED AND WHAT SHOULD BE USE

CRM STRATEGIES USED BY HUNDAI MOTORS

HYUNDAI CRM strategy is aligned to the organisation's mission and purpose in order to bring about a sustained achievement of business objectives and profitable customer relationships. CRM strategies vary, however, the most successful strategies used by Hyundi.

Clear alignment between the organisation's purpose and the CRM strategy; a strong strategy is a direct reflection of the company's purpose and supports the company vision in direct and easy to understand terms.

HUNDAI CRM strategies is based customer focused; they should articulate the positioning, evolvement and objectives of the customer relationship.

CRM strategies is senior executive sponsorship and complete buy in from across the organisation. Both staff and management take their queues from the executive team so it is imperative that the executives are visible, vocal and active in their sponsorship of the CRM strategy.

HUNDAI CRM strategies are often realized from the achievement of specific CRM objectives. To be successful, it's imperative that objectives are thorough, measurable and directly attributed to supporting the overall strategy. Several common CRM objectives are base of HUNDAI include the following:

HUNDAI Sharing customer knowledge. Prospects, customers and business partners call on multiple resources in varying lines of business and through multiple communication channels. It's essential that any and all resources called upon share the same information in order to speak intelligently and with a common voice. Shared customer data ensures that each customer interaction is handled with the same degree of care while leveraging the same information across all departments, geographies and channels.

360 degree consolidated customer view using the company. The achievement of a single, enterprise-wide view of the customer relationship delivers one real-time version of all customer information, eliminates duplicate data entry, reduces systems integration complexity and empowers staff with up to date knowledge and actionable customer insight.

Repeatable processes. The adoption of CRM automation software facilitates consistent processes, process improvements and best practices among all staff who use the software to become more efficient in their daily roles.

BUSINESS STRATEGY & CRM

Three key phases:

• Customer Acquisition.

• Customer Retention.

• Customer Extension.

Three contextual factors:

• Marketing Orientation.

• Value Creation.

• Innovative IT.

Customer Acquisition

This is the process of attracting our customer for their first purchase. We have acquired our customer.

Customer Retention

Our customer returns to us and buys for a second time. We keep them as a customer. This is most likely to be the purchase of a similar product or service, or the next level of product or service.

Customer Extension

- Our customers are regularly returning to purchase from us. We introduce products and services to our loyal customers that may not wholly relate to their original purchase. These are additional, supplementary purchases. Of course once our loyal customers have purchased them, our goal is to retain them as customers for the extended products or services.

Marketing Orientation

- Means that the wholes organization is focused upon the needs of customers. Customer needs are addressed by the Three Levels of a Product whereby the organizations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as a warranty and customer service. Marketing orientation will focus upon the needs of consumers for all three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not the same).

Value Creation

- Centres on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage.

Innovative IT

- is exactly that - Information Technology must be up-to-date. It should be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software are not the entire story for CRM, it is vital to its success. CRM software collects data on consumers and their transactions. Huge databases store data on individuals and groups of individuals. In some ways, CRM means that an organization is dealing with a segment of one person, since every consumer displays different purchasing habits and preferences. Organizations will track individuals, and try to market products and services to them based upon similar buyer behaviour seen in other individuals (e.g. When Amazon tells you that customer that viewed/bought the same product as you, also bought another product).

AUTOMOTIVE industry , Companies focus upon the needs of customer, not only providing the tangible product i.e. CAR but also augmented product such as warranty, customer service, providing more services than competitors, distributing free gifts, free vehicle check-up, etc & now-a-days almost every big company use CRM software in collecting data on consumers & their transaction, providing them customized service . After every new launch of a car, companies give information about that same product to their loyal customers. Not only companies stick to that car only but tries to sell accessories also like seat covers, Alloy wheels, music system so that customer doesn’t have to go to several places & quite often dealers give discount also in these items as a CRM business strategy .

Hyundai Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward.

Phase 1, currently under way, focuses on capturing customer and vehicle data and automating routine tasks.

Phase 2 will focus on leveraging data to improve customer interactions and streamline product development and planning.

Phase 3 will focus on tuning the system and delivering additional value-added services to customers. To address its competitive challenges, Hyundai Motors began standardizing its customer-facing business processes companywide, laying the foundation for stronger dealer relationships, improved operational efficiency and effectiveness, and a better customer experience. This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India.

CUSTOMER KNOWLEDGE

Customer knowledge refers to understanding your customers, their needs, wants and aims is essential if a business is to align its processes, products and services to build real customer relationships. Customer knowledge can be approached from two ends. Firstly, you could say that customer Knowledge is the "collection of information and viewpoints that an organization has about its customers". Using this definition, the role of customer knowledge management is to capture and organize this data to allow it to be shared and discussed throughout the organizational alternative definitive of customer knowledge is that it is the "collection of information and insight that you need to have to build stronger customer relationships". From this point of view what you currently know about your customers may

not be sufficient. You may need to put in processes and systems to gather more information and data about who your customers are, what they do and how they think.

CUSTOMIZATION:

Customization bonds approach suggest that customer loyalty can be encouraged through intimate knowledge of the individual customers and through the development of one-to one solutions that fit the individual customer’s needs. HYUNDAI MOTORS believes in 'Customer is THE KING', and also knows well how to make them feel One. They have an extensive follow up programme and prompt service. This helps them to change their strategies and customize their services to fit developing customer needs. For this purpose, they always request the customers to fill in their feedback form that follows the service/repair visit. If a low score is received on their feedback form, they would go out of the way to apologize for the error. Simultaneously, they provide technicians who visit their home place in order to attend the issues and rectify them to their satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved.

RELATIONSHIP POLICY:

The customer is tied to the company primarily through financial incentives – lower prices for greater volume purchases or lower prices for customers who have been with a firm a long time.

• As we know, the acquisition cost is not the only cost one faces when buying a car. it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Hyundai Motors provides very good after sale services to its customers. It is in the economy segment that the affordability of spares is most competitive as compared to others.

• It also provides its long term customers either with stable prices or lower price increases as compared to the new customers.

• HYUNDAI motors provides financial incentives and rewards to the customers who bring more business to their service station by recommending and spreading good word of mouth to others about their services.

• HYUNDAI Motors provides free of cost servicing to customers having Tata cars within a twoyear warranty time period. HYUNDAImotors also offers an extended paidwarranty program marketed under the brand, “Forever Yours” for the third and fourth year after purchase. The extended warranty program helps in strengthening contact with the customer and also increase the revenue generated from sale of spares, accessories and automobilerelated services. 

CRM Systems and Implementation

These are some of the key features for which AUTOMOTIVE SECTOR applies CRM software:

• Sales management shares customer information between sales, service and parts departments

• Vehicle management gives complete vehicle data along with sales, service and financial history, as well as dealer and license information and owner and contact information

• Activity and e-mail management systems link e-mails with associated contacts, leads and opportunities

• Service management increases customer loyalty by enabling consistent, personalized interaction across all customer touch points including, telephone, e-mail, Web, wireless devices and in-person meetings.

Hyundai Motors implemented Oracle's Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Seamlessly integrated with Hyundai Motors’ dealer management system and SAP back-office applications, Siebel Automotive has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. By tightly integrating Siebel Automotive and its dealer management system, Hyundai has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from another. To further enlist dealer support, HYUNDAI Motors involved dealers throughout the solution configuration and deployment process. “Integrating Siebel Automotive with our dealer management system ensured that our dealers would immediately see the value in the solution,” Sreenivasan explains. “This has helped us overcome the usual resistance to change and gain rapid acceptance from our dealers.” Siebel Automotive has been closely integrated with a wide array of SAP back-office applications, including applications inventory management, fulfilment, and parts location. Pricing and tax calculations can be adjusted for each dealer’s requirements. In addition, comprehensive sales and reporting functionality built into Siebel Automotive enables HYUNDAI to distribute sales targets to its dealers and roll up sales numbers across the country.

HYUNDAI Motors also liked the fact that Siebel Automotive provides multi-organization support, can be deployed easily over the Internet, and provides robust partner management capabilities—ideal for Hyundai Motors with its far-flung dealer network. Further, the user-friendly interface has simplified the process of training Tata Motors’ 10,000-plus dealer sales force. Covering a country with an area of 3.3 million square kilometres (or about one-third the size of the U.S.) also required an innovative communications solution. Hyundai Motors links its 1,600 customer touch points with its centralized data centre in Mumbai using a combination of VSATs and high-speed virtual private networks. Siebel Automotive has already begun to deliver benefits for Hyundai Motors’ dealers throughout India. “Overall, Siebel Automotive has transformed our organization and made it truly customer-centric,” says Sreenivasan. “We’ve overcome the challenges of relying on disparate sources of information, as well as having inconsistent business processes. Today, our employees and dealers are much more responsive and can serve customers more efficiently and effectively—drawing upon real-time, centralized customer and vehicle data. “One of our first dealers to install Siebel Automotive said that his sales volume doubled in three months without the need for additional manpower,” he continues. “Another dealer said that for the first time he was able to view his entire stock of vehicles and how his inventory was aging, improving his control.” Siebel Automotive has also helped dealers respond to customer queries regarding vehicles that aren’t in a dealer’s stock, but which can be ordered directly from Hyundai

Motors. “Within the first year of implementing the solution, we are targeting improvements of 5 to 10% in customer satisfaction, revenue growth, operating cost reduction, and productivity gains,” says Sreenivasan. “These numbers should increase considerably over time.” He concludes, “Siebel has been very committed to helping us in all aspects of the project. Combining Siebel Automotive with our dealer management system is unique, so we have needed quality support. Siebel has played a major role in getting us to where we are today.

5) RECOMMENDATIONS

Many organizations operating in automobile market still do not differentiate their CRM activities at the segment level. They contact each prospect with the same Frequency instead of applying a level of effort consistent with the cost of acquisition and profit potential. Their unrefined use of resources not only leads to wasted investment but can cause annoyance among customers who are either being oversupplied or undersupplied with attention.

• Companies keep the name of financing company as the owner of the vehicle and in many cases does not have the record of effective owner of vehicle who was responsible for the purchase decision.

• In CRM Indian Automobile industry has to learn much from other service industries such as airline industry. Each time a customer approaches a service agent, his entire history was flashed on screen.

• Customer knowledge can be used to give customer specific offer on purchase of second vehicle in family.

• Services such as pick and drop, on-road service, should be provided at HYUNDAI service station, which are common in other companies.

6) CONCLUSION

Hyundai Motors has proven excellence over the years through its technologically advanced products, market expansion, customer satisfaction and increasing sales. Hyundai Motors consistently strives to increase shareholder value, build stronger customer relations and work with its business partners to provide the best value for money. The company is also involved in accelerating the country’s economic growth and protecting the environment. With the initial financial backing of the giant parent company, Hyundai Group, the division has built a strong business over the past 60 years and continues to show strong financial results. The continual improvement and introduction of new products in the market have allowed it to successfully enter as well as dominate the automobile industry in India. With increasing sales, employees, product offerings, manufacturing facilities and distribution centres along with expansion in India, the company seems to have a promising future.

7) REFERENCE

http://en.wikipedia.org/wiki/Hyundai_Motor_Company

http://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited

http://www.hyundai.com/in/en/main/

http://www.termpaperwarehouse.com/essay-on/Crm-Initiatives-In-Hyundai-Motors/22604

www.salesforce.com