Financial Daily from THE HINDU group of publications
Sunday, Nov 27, 2005
Financial Daily from THE HINDU group of publications Sunday, Nov 27, 2005 |
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Investment World
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Cars Marketing - Customer Relationship Management Satisfaction index S. Muralidhar
The study is one of the largest syndicated automotive studies in India, representing the responses of more than 7,000 new car buyers. The comprehensive study covers over 50 models with customer evaluations taken in the key areas of sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image, and cost-of-ownership. The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its customers. According to TNS Automotive, the decline is predominantly for older, small and entry mid-size car models. The ageing of these models seems to be posing a stiffer challenge for manufacturers to sustain past performance levels at a time when customer expectations are rising sharply.
The study reveals a significant increase in the importance of sales satisfaction, product quality (both performance and design) and brand image since 2003, indicating rising customer expectations over the years. This year's study shows the Maruti Suzuki Swift and the Toyota Innova as the winners, with the two vehicles achieving segment-best ratings by performing well in areas of greater relevance, particularly product and brand image. Sales satisfaction is weak in both these models, largely because of the longer waiting time for new deliveries.
TNS Automotive's TCS Study has, since its inception in 2002, surveyed over 25,000 car buyers and hasbuilt a sizeable sample base. Some of the key findings, indicators and inferences from the 2005 study are: Progressive reduction in car ownership cycle-time from an average of 61 months in 2002 to 53 months in 2005: This shortened cycle-time is bringing these owners for repeat purchases sooner and will,therefore, further fuel the growth of the four-wheeler market. This trend is already visible in the growing additional/replacement purchases. Growth in additional (multi-car households) and replacement purchases up from 51 per cent in 2002 to 65 per cent in 2005: This will impact the volume growth in higher-end segments as the current car owners show upward mobility.
Increasing budget for future purchases: Future intenders with a budget of Rs 6 lakh plus have increased from 44 per cent in 2002 to 58 per cent in 2005. While first-time buyers are declining as a composition of total volumes, the figure in absolute terms is high, fuelled by the up-gradation by two-wheeler owners The study also throws up the question as to whether it is also possible that the first-time car buyer who is generally a two-wheeler owner, is getting more fuel efficiency conscious and tending towards postponing the car purchase decision due to the high cost of fuel. Of course a shift in composition is also to be expected with the upper premium compact and mid-size segments projected to grow at a much faster rate than rest of the industry. The TCS study was conducted from August through October across 21 cities. Small sample models have not been featured in the charts. These include the Fiat Petra Diesel, Ford Fusion, Ford Mondeo, Hyundai Terracan, Maruti Esteem Diesel, Maruti Suzuki Grand Vitara, Maruti Zen Diesel, and Opel Corsa Sail. TNS has a global network spanning 70 countries and is listed on the London Stock Exchange.
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