Internship Project on ashok Leyland

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					Ashok Leyland Ltd.

Building Relationship
Marketing In Ashok Leyland
Anjum Sudhanshu Daniels – 09BSHYD0108

An Interim Report

               An INTERIM REPORT


   Building Relationship Marketing At

                     Ashok Leyland
                   Anjum Sudhanshu Daniels

    Plot No.76, Institutional Area, Sector – 32, Gurgaon – 122001

An Interim Report Submitted in Partial Fulfillment of
the Requirement of MBA program of IBS Hyderabad

                       Submitted By

                 Anjum Sudhanshu Daniels

                        Submitted To

Company Guide:                             Faculty Guide:

Mr Rajiv Bhushan                       Dr Malini Reddy

Senior manager – Marketing                        Faculty

Ashok Leyland                              IBS Hyderabad


In pursuit of an MBA degree, summer internship is a critical component of the entire
package. I wish to express my true regards to individuals who supported and directed me
throughout this internship.
My Sincere thanks to Mr. VS Ravichandran (Regional Manager, New Delhi), for giving me

an opportunity to work in the company and to learn from the practical challenges that a

manager faces while on the job. He also gave me his valuable time in initial days of my

training to make feel me comfortable about organization and various other aspect like
products, staff etc.

My Sincere thanks to my Company Guide Mr Rajiv Bhushan (Senior Manager) who not

only encouraged me to do my work positively but also gave me freedom to do my work in my

own way.

My Sincere thanks to my Faculty Guide Dr. Malini Reddy who always gave me his valuable

feedback on my efforts and also gave me the direction in which my project should head.

I also thank Mr Raju Fatlani (Area Manager-Delhi Region for giving me their support in

solving my doubts related to commercial vehicle segment. I really learned a lot from their

attitude, behavior and interpersonal skills that how to interact with different kind of the

persons in the organization in the different way.

I also thank Mr. Amar Sureka for giving me an insight about how the organization works and

how each individual is important for the running of the whole organization.

1. Cover Page………………………………………………………01
2. Title Page………………………………………………………..02
3. Authorization…………………………………………………...03
4. Acknowledgement……………………………………………...04
5. Abstract………………………………………………………...06
6. Introduction……………………………………………………07
7. Objective of the project……………………………………….08
8. Methodology……………………………………………………08
9. Scope of work…………………………………………………09
10.      Limitation……………………………………………….09
11.      Indian Commercial Vehicle Industry…………………..10
12.      Light Commercial Vehicles ……………………………..16
13.      Heavy Commercial vehicles……………………………...17
14.      Recent Trend In Commercial vehicles…………………..18
15.      About Ashok Leyland…………………………………….20
16.      Application Mapping……………………………………..24
17.      Products Of AL…………………………………………27
18.      Work Done Till Now…………………………………….31
19.      Work To be done…………………………………………48
20.      References………………………………………………49
21.      Questionnaire……………………………………………50

This project involves the in depth study of the existing Customer Relationship management
methods and practices in Ashok Leyland, where in how the relationship with a customer is being
built up and maintained. As per the recent trends the customer does not only buys the
commercial automobile but also expects the organization to provide a wide variety of buddle of
package such as after sales services, value added services and further incentives with the product.

Thus after realizing the need for the organization in CRM at customer and dealer end, the
problem statement is being formalized.

In order to make necessary suggestion in the CRM of Ashok Leyland there is strong need to
understand the existing group of customers and their satisfaction level with the organization what
it delivers to them. Thereafter customer lifetime value will be calculated where in the value of
each customers will be judged and then the customer satisfaction and customer lifetime value is
mapped in order to find out the gaps in delivering the value to the organization existing customer

In order to bring in value change new additions in the existing CRM methodology and software
will be suggested.


                                   The Indian Commercial Vehicle (CV) Industry is the lifeline of the
economy. Approximately 66% of the goods and 87% of the passenger traffic in the country moves via
road. The Commercial Vehicle industry draws its demand from the economy and hence is prone to
cyclicality. However, due to greater versatility of usage, the LCV demand is less cyclical than the M&HCV
demand. The industry is capital intensive in nature but with CV manufacturers moving towards
increased ancillarisation, the initial capital outlay for setting up a Greenfield plant has decreased
substantially. Instead manufacturers are now directing significant effort towards vendor development
and rationalization. The industry is highly susceptible to technological changes. With environmental
norms becoming stricter and consumers demanding better technology vehicles, it has become
imperative for the manufacturers to either have technology partners or a strong in-house R&D. The
need of having a wide product range in each of the segments along with the short lifecycle of these
vehicles makes it mandatory for the manufacturers to constantly innovate so as to sustain competition.
These factors together increase the entry barriers to this industry making it an oligopolistic market.

                                   Now in recent times with rapid competion with the other major
competitors in the commercial vehicle market like TATA motors, EICHER, AMW, MAN etc, dealing with
customer is very crucial and strategic in this particular scenario. Here in this type oligopolistic market of
commercial vehicles where in customer retention and customer acquisition are rapid and crucial for a
company like Ashok Leyland , there has been need generated for its customer relationship building , so
that switching takes place at minimum level and the customer satisfaction is being well maintained by
the organization. Thus there is extra benefit for the sales department of the organization in order to
identify the key risk areas and focal points where in they can focus and build on the customer
relationship stronger and bring in overall improvement in the organization.

                                   Currently in Ashok Leyland the customer group with which the
company is dealing is handled through a tool named CRM & DMS( Customer relationship management
& Dealer management System), this helps them to keep a track of the leads & prospects generated for
the sales to be done and track record for the invoicing of sales which is being carried out. Mainly this
tool is fetching the organization as a database management tool. Thus in order to increase the scope of
the tool one has to incorporate more functions like profiling the customers , analyzing the profitable
customers, and measuring the gaps being created in customer value delivery.

                                For this particular above mentioned goal to achieve we require to
measure the customer satisfaction level within the existing customers of Ashok Leyland Ltd and then
measure the customer lifetime value of the existing customer groups of the organization , finally

mapping the two in order to find out the various GAPs present in the Customer loyalty creation towards
Ashok Leyland. Thus fulfilling the gaps with the help of some CRM initiatives within the organization.
There in incorporating an analytical tool in the exiting CRM&DMS software to do the required analysis
for building customer relationship.

                                 The customer lifetime value calculation will help us in determining the
business demand diversity and this whole process will help in building a correct perception of product &
service as held by any key opinion makers. The whole gap analysis in turn will help in identifying
deficient making units and thus help us in categorizing areas of work like in of ABC category and key
account management.

Objective of the Project:-
      To conduct a customer satisfaction survey of the existing group of customers
      To calculate the customer lifetime value of the customers and to compare it with
       customers satisfaction and to find out the gap. So that the gaps can be filled in order to
       develop more close customer value creation.
      To finally bring in valuable suggestion in the existing CRM software. So that
       organization can understand the customer needs in advance stage.

Research Design:-

Research design is a framework for conducting the research project. It is descriptive in nature as
the information needed is clearly defined. Survey method is adopted which includes personal
interviewing. The technique used to gather the required data is through questionnaire. I aim to
take responses from as many customers of Ashok Leyland which are of varied kinds and profiles.

Data Collection:-
Primary Data:- It includes the direct responses obtained through questionnaire and personal or
telephonic interviewing.
Secondary Data:- It includes the fact sheets , newspapers , magazines and websites.

Data Analysis:-
The data collected over a period would be analyzed using suitable data analysis techniques
depending upon the sample size taken. I aim to use factor analysis to analyze the collected data.

Interpretation of Results
Result would be interpreted by an examination of the standardize factor analysis different
set of variables, the structure coefficients, and certain plots.

The gap analysis graphs will help in indentifying the gap areas.


Geographical Scope

The geographical scope of this project is limited as it is being done in only within the
existing customer groups in which I am being sent by the organization. Therefore, the
respondents are from Delhi and NCR only.

Functional Scope

The functional scope of this project has three fold objectives; firstly, it deals with
Understanding of the conceptual framework and working of the company sales and
marketing team. Secondly, it aims at analyzing the performance of products and their
technical functionality and thirdly, it aims to know about the market scope of commercial

It has been observed that customers, in general, are concerned with not only the product
alone, but also the after sales services, value added services and other incentives which
company offers.

This project endeavors to apply risk adjusted parameters that truly test the performance of
the organization. If properly understood, these measures convey significant information
about customer relationship management, proper management of dealers and forecasting
the correct customer needs.

Limitations of the Study:
      The scope of the analysis is limited to the analysis of Delhi & ncr area only.
      Sample size is also a limitation.
      In future, the study can be carried out on a much larger scale, say all over India or zones wise.
      Due to lack of time the additional CRM tool implementation may or may not be possible.

                Indian Commercial Vehicle Industry
One wonders how well founded is the correlation that one is tempted to draw between India's
post-independence history and the evolution of commercial vehicles industry in the country. The
rapid growth that marked the commercial automobiles' sector after independence can be, to a
great degree, seen as a fruition of Nehru's pregnant visions of an industrialized nation and the
subsequent exodus of masses to the cities. Today, India's commercial vehicles sector is one of
the rapidly growing industries in the country. The output of commercial vehicles in India has
shot up to 2.8 times between the years 1998 to 2004; the figure is significant in the light of the
fact that the growth in passenger cars has been only 2.2 times between the same period. One can
choose between new and used commercial vehicle, if planning to buy with a number of
commercial vehicle insurance options flooding the markets.

Evolution of Commercial Vehicles:

Evolution of Commercial Vehicles dates back to a long time and happened over a period of time.
Commercial Vehicles category will mainly include truck, bus, jeep, tractor, ambulance etc.

The evolution of bus dates back to the early 19th Century. In the early 1830's Sir Goldworthy
Gruney from the UK had designed some kind of a Hugh stagecoach, which was powered by
steam engine. This was probably the first kind of bus developed by mankind. However, after the
first breakthrough in 1830, the development of buses took a new stage in 1895.

It was during this time, that the first passenger bus with four to six horse power single cylinder
engine was made in Germany. The modern term bus had come form the Latin word "Omnibus",
meaning "for all". And, by the year 1915, bus service had started throughout the world. And
slowly the Horse-Drawn Carriage and the Electric-Trolley cars were replaced by Buses.

The evolution of trucks dates back to the late 19th century. Gottlieb Daimler designed the first
truck in 1896. However, the popularization of the concept of trucks happened during the World
War times. It was during that period that the usefulness of the trucks was understood.

Trucks can be defined as heavy vehicles specially manufactured to carry out special functions
like transporting heavy goods, machinery etc. and to do specialized work.

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The specifications of the first truck were a four horse power engine which had two forward
speeds and one reverse speed fitted with a belt drive. This was of German make and was the first
pickup truck. However, with time, the development of trucks has come a long way. Today,
trucks are very powerful and can be of 500 horsepower or more. Today's trucks are equipped
with machinery that enables them to have very high power required for climbing mountainous
regions and high altitude. They also have the required specifications to attain very high speed as
well. The towing truck industry was established in 1916 by Ernest Holmes after he patented his

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Production of Commercial Vehicles:

                                Automobile Production Trends                     (Number of
Category          2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Passenger Vehicles 989,560 1,209,876 1,309,300 1,545,223 1,777,583 1,838,593 2,351,240
                    275,040 353,703 391,083 519,982 549,006 416,870                 566,608
Three Wheelers      356,223 374,445 434,423 556,126 500,660 497,020                 619,093
Two Wheelers      5,622,741 6,529,829 7,608,697 8,466,666 8,026,681 8,419,792 10,512,889
Grand Total       7,243,564 8,467,853 9,743,503 11,087,997 10,853,930 11,172,275 14,049,830
TABLE 1: Source - http://www.siamindia.c 1



                                                                           Commercial Vehicles
                                                                           Passenger Vehicles
                                                                           Three Wheelers

    4,000,000                                                              Two Wheelers


                 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Production of Commercial Vehicles has taken a center stage in the automobile industry of India,
today. After globalization came into effect in mid 1990's and the automobile sector of India was
opened for global players, there has been an immense flow of capital in this particulate sector.
However, the market is still quite untapped. But there has been a considerable amount of growth
in this particular sector. The main mantra of the manufacturers of Commercial Vehicles in India
is very simple. They are into indigenization of the products. Due to the opening up of the Indian
market, capital investment is mo more a problem.

The demand of skilled technicians and labor has also been met. Hence all the factors together
have led to the increase in the Production of Commercial Vehicles in India. State-of-the-art
facilities have been installed at the various manufacturing plants by the fore runners of this
industry. According to the Economic Survey of Indian Government, the Commercial Vehicle
sector made a growth of about 10%. The number of automobile manufacturing facilities in India
has grown to nine for Commercial Vehicles as well. The Light Commercial Vehicles (LCVs)

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grew by more than 19% during 2005-06 as compared to 2004-05. According to the
manufacturers of Commercial Vehicles in India, there has been a growth of about 20% in the last
couple of years or so. And they also predict a future growth of 22% in the near future.

The following are the main players in the Production of Commercial Vehicles in India;

        Ashok Leyland Ltd.
        Hindustan Motors Ltd.
        Telco
        Force motors Ltd.( Previously known as Bajaj Tempo Ltd)
        Eicher Motors Ltd.
        Mahindra & Mahindra Ltd.
        Swaraj Mazda Ltd.
        Tata Motors

        Domestic Market Share for 2009-10

 Passenger Vehicles                          15.86

 Commercial Vehicles                          4.32
 Three Wheelers                               3.58
 Two Wheelers                                76.23
TABLE 1: Source - http://www.siamindia.c 2


FiG 1: Source-SIAM 1

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Exports of Commercial Vehicles:-

                                 Automobile Exports Trends                            (Number of
Category                  2003-04 2004-05 2005-06 2006-07     2007-08     2008-09     2009-10
Passenger Vehicles        129,291 166,402 175,572 198,452     218,401     335,729     446,146
                          17,432 29,940 40,600 49,537         58,994      42,625      45,007
Three Wheelers            68,144 66,795 76,881 143,896 141,225 148,066                173,282
Two Wheelers              265,052 366,407 513,169 619,644 819,713 1,004,174           1,140,184
Grand Total               479,919 629,544 806,222 1,011,529 1,238,333 1,530,594       1,804,619
TABLE 2: Source - 1

  1,400,000                                                                   Passenger Vehicles
  1,200,000                                                                   Commercial Vehicles
  1,000,000                                                                   Three Wheelers
    800,000                                                                   Two Wheelers
    600,000                                                                   Grand Total
                2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Exports of Commercial vehicles are in full swing at the present moment. And to add fuel to
recent growth in this sector, the Indian automobile companies have decided to extend their
manufacturing capabilities along with their international counterparts. Hence, the recent boom in
the Exports of Commercial Vehicles division is due to the newly improved network and
infrastructure. The attractive financial packages that are being offered along with the improved
infrastructure are an added advantage for the industry. The recent growth of the Indian economy
and the upward trend of the Indian market is a very healthy signal for the export division.

However, a lot depends on the budget and its implications on the exports market. Thus making it
very important for the key players of the Indian economy to take correct decision for its

It has always been noticed that the passenger car industry gets more recognition and focus in
comparison to the Commercial Vehicle industry. However, going by the statistics we find that
there has been a phenomenal growth in the sales of the Commercial Vehicles since 1998. The

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total sales of M&H Commercial Vehicles were 15,906 units in 2000 in comparison to the 12,949
units in 1998. In the same way, the total sales of Light Commercial Vehicles in 2000 were 8,642
units in comparison to 6,931 units in 1998. Even in the Multi Utility Vehicle Segment the sales
have gone up from 13,400 units in 1998 to 17,194 units in 2000.

This transformation in the Commercial Vehicle industry came into effect from the mid 1990's.
Earlier, the scenario was not stable at all, as there were only a few local companies dealing in
this particular sector. However, as soon as the concept of globalization was introduced in India,
this particular sector gained speed with the MNC's making Foreign Direct Investment in as early
as 2002. Thus, making India a perfect destination for global outsourcing. This is mainly due to
the cost effective environment and the technologically skilled personnel found here. The
condition of the industry, the willingness of the country to invest and the skilled labor are the
other few reasons behind the specified sector to flourish.

According to the Economic Survey of Indian Government, the automobile Industry has made a
15% growth in general and in particular the Commercial Vehicle sector made a growth of about
10%. The number of automobile manufacturing facilities in India has grown to nine for
Commercial Vehicles as well. The Light Commercial Vehicles (LCVs) grew by more than 19%
during 2005-06 as compared to 2004-05.

Though there has been a thrust in the domestic market, yet the export potential of the country has
not been properly exploited yet. It's still an untapped market. Although some amount of progress
is being made. However, Export of Commercial Vehicles increased by 36% to 40,581 units in
the 2005-06 as compared to 2004-05. India is also the largest Tractor Manufacturing country in
the world. It has produced 270,000 units in 2005-06.

According to the Commercial Vehicle Manufacturers of India, the growth in the recent past has
been around 20 percent, and they predict that there will be phenomenal growth in this sector in
the recent future. Their projection for the future is around 22 percent.

Almost all the Indian manufacturers are focusing their attention on South Asia, Middle East and
Africa as potential markets for the finished products. The reason being, the demographic
similarity between the manufacturing country and the potential markets

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Light Commercial vehicles:-

Light commercial vehicles (LCVs) are usually referred to goods and carriage vehicles with a
light capacity that varies from one region to another. In Europe the popular definition for a light
commercial vehicle is one good vehicle with a maximum permissible capacity of 3.5 tones of
mass. The importance of a light commercial vehicle is obvious especially in a newly
industrialized economy with large regions to cater where such vehicles play a niche role in
transporting goods from one place to another throughout the country.

In the Indian automobile context, light commercial vehicles have assumed a great degree of
significance with the national economy poised for a greater leap forward. No wonder, all the
leading automobile manufacturers are having their operations in the field of LCVs. Tata Motors
for one, has made its position unique in the commercial segment of Indian automobile by having
a presence in all spheres, light commercial vehicles, heavy commercial vehicles and the like.
However, the other leading automobile players like the Ashok Leyland and Swaraj Mazda too,
are not lagging behind and they have their own aggressive expansion plans on show.

Some of the popular offerings in the field of light commercial vehicles from the Tata Motors
stable are Tata 407 and Tata 709 of which the former has made a distinct mark in the category of
Indian LCVs. However, the recently launched Tata Ace has brought about a dramatic change in
the Indian LCV market. Low priced and attractively designed, the Tata Ace has been hugely
popular and recorded significant sales in the first year of production itself.

Ashok Leyland is another major LCV player with products like Cargo 759 Tipper to boast of.
With a wheelbase of 3200 mm and 5 speed synchromesh gearbox, it has got 4 cylinder diesel
power engines. The Premium model of Swaraj Mazda has a wide cabin and wheelbase of 2815
mm, has 4 cylinder engine capacities while Cosmo, another of its LCVs, has an overall length of
the vehicle 4789 mm. Dual Cab and steel High Deck are the other popular forms of Swaraj
Mazda's range of LCVs in India. Eicher 10.60 and Eicher 10.70 are the other popular LCVs that
are visible on Indian roads.

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Heavy Commercial Vehicles:-

Heavy commercial vehicles (HCVs) are an integral part of the economic activity of all countries.
Having an overview of HCVS indicate is their import in places where economic development is
reaching a high and the roadways and surface transportation play a significant role in
transporting goods and services from one part of the country to another. Talking of India, the
road transportation has an important role in the shipping of goods and essential services like,
petroleum, gases, supplies and the like. The heavy commercial vehicles have the ability to load a
tonnage exceeding the capacity of 3.5 tones and transport them over long distances.

In the context of heavy commercial vehicles, Tata Motors is the most important player in the
arena. With a range of options from Tata LPT 1613, Tata Se 1613, Tata LPT 2213, Tata LPT
2516 TC, Tata Sk 1613 , it has many forms and designs of HCVs to choose from. The company
in a technical tie-up with Volvo, one of the globally acclaimed commercial automobile
manufacturers has launched Volvo FH12-420 and Volvo FH12-340 in India.

Swaraj Mazda's the north Indian commercial automobile manufacturer has Super ZT 54 as its
HCV that however has failed to make a big dent into the Indian HCV market. Eicher 10.90 is the
offering from Eicher which is an upgraded version of its light commercial vehicles like Eicher

However, Ashok Leyland is the only HVC manufacturer in India that has been able to give a
decent bit of competition to the market leader Tata Motors in the HCV category. With a number
of options like Cargo 909, Cargo 1512, Cargo 1614, Comet Tipper, Hippo Tipper and others,
Ashok Leyland too is fairly well entrenched in the Indian heavy commercial vehicles market and
is continuously working on coming out with more improved versions and features on its HCVs.

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Recent Trend In Commercial Vehicles:-
The commercial vehicle (CV) industry faced challenging times in 2008-09 - reduction in cargo
and passenger traffic, lower freight rates, difficulty in availability of vehicle finance, stricter
appraisal norms for financing - all on the back of the global financial crisis.

The domestic CV sales dropped by 21.7 per cent over the previous year. The Goods Carrier (GC)
segment witnessed a decline of 24 per cent, while Passenger Carrier (PC) segment witnessed
sales drop by 7.1 per cent over the same period previous year. The exports too declined by 27.7
per cent in 2008-09.

The profitability of the manufacturers came under pressure in 2008-09 – in the first half due to
high input prices and in the second half due to huge reduction in sales volumes. The operating
profit margin declined to 5.7 per cent from 9.2 per cent in 2007-08.

The stimulus packages announced by the government like a) excise duty cut from 14 per cent
before December 2008 to 8 per cent (now rolled back to 10 per cent) b) implementation of the
fleet modernisation program of the State Road Transport Undertakings [SRTU] under the
Jawaharlal Nehru Nation Urban Renewal Mission (JNNURM) and c) accelerated depreciation at
the rate of 50 per cent of the annual allowance for vehicles purchased between September 30,
2008 and September 30, 2009 ensured a revival in the sector in 2009-10.

Although the exports for the industry still have not come out of the woods, the domestic sales
managed to revive, with recovery being more pronounced post September 2009 with growth rate
for CV sales for the period September - December 2009 standing at 92.6 per cent y-o-y as
compared to 19.1 per cent for April - December 2009. The sector was also helped by reduction in
commodity prices during the first half of FY10. The prices of both steel and rubber reduced by
around 20 per cent, translating into improved margins of the CV industry.

Various launches were made during April - December 2009 owing to the revival in the CV
demand. In Light Commercial Vehilce (LCV) GC segment, Tata Motors launched ‘Super Ace’
and ‘Ace EX’ under <=3.5 tonnes sub-segment. In Medium and Heavy Commercial Vehicles
(MHCV) GC segment it launched a new range of premium ‘World Truck’ in the 10 to 75 tonnes.
Ashok Leyland launched its 31 tonner Multi Axle Vehicle ‘3116’. Mahindra and Mahindra
launched the 0.5-tonne ‘Gio’ in competition to Tata Motors sub-one tonne ‘Ace’. The company
also launched Maxi truck CNG and a mini truck ‘Maximmo’ during the said period. Thus, the
competition level is rising in the CV industry.

A Research foresees healthy growth of commercial vehicles in the next 4 – 5 years as the
economy has resumed its buoyancy. According to Research, LCV sales are likely to outpace the
MHCV sales in terms of units and overall GC segment growing at a faster rate as against the PC.

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Abundant and low cost labour coupled with local availability of raw materials like steel,
aluminium and natural rubber, coupled with healthy demand outlook and 100 per cent FDI has
made India an attractive destination for foreign players that are eyeing for a share in the pie
either through joint venture with an Indian partner or on a stand-alone basis.

In the light of growing cargo and passenger movement with the economy resuming its buoyancy,
higher industrial output, investments in road infrastructure coupled with assistance by the
government to improve the public transportation system, domestic commercial vehicle sales
growth is expected to accelerate at a healthy pace in the next 4 – 5 years. Additionally, the sleuth
of new launches both in the sub 1 tonne LCV segment and multi axle vehicle segment by major
players like TM, ALL, MM at better value propositions than the currently available competing
products, which is expected to improve the overall efficiency of the truck operators operations is
expected to give the supply side push to the commercial vehicles sales.

The advantages of abundant low cost labour, local availability of steel, aluminium and natural
rubber as well as strong ancillary industry in addition to the 100 per cent FDI allowed in the
sector has attracted global commercial vehicle majors like Volvo, MAN, Daimler, Hino, Nissan
to enter the Indian market either on their own or through a joint venture.

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                                       Ashok Leyland

                The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent
India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Mr. Raghunandan Saran, an
industrialist, to enter automotive manufacture. In 1948, Ashok Motors was set up in what was then
Madras, for the assembly of Austin Cars. The Company's destiny and name changed soon with equity
participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in

              Since then Ashok Leyland has been a major presence in India's commercial vehicle
industry with a tradition of technological leadership, achieved through tie-ups with international
technology leaders and through vigorous in-house R&D.

Ashok Leyland has six manufacturing plants -

Ennore Plant, Chennai

Hosur Plants Unit I, Unit II and Unit II A.

Alwar, Rajasthan.

                                                                                               20 | P a g e
Bhandara, Maharashtra                                    .

A new plant is to be set to be launched in Uttaranchal at Pant Nagar with a plant capacity of
40,000 commercial vehicles. Early products of Ashok Leyland included the Leyland Comet bus
chassis sold to many operators including Hyderabad Road Transport, Ahmedabad Municipality,
Travancore State Transport, Bombay State Transport and Delhi Road Transport Authority.

In the popular metro cities, four out of five state transport undertaking buses come from Ashok
Leyland. Some of them like the Double Decker and Vestibule buses are unique models from
Ashok Leyland, tailor made high-density routes.

Statistics reveal that the company is India’s largest exporter of medium and heavy duty trucks. It
sells close to 83,000 medium and heavy vehicles each year. The company has a near 98.5%
market share in the Marine Diesel engine markets in India. At 60 million passengers a day,
Ashok Leyland buses carry more people than the entire Indian Railway network.


In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND INTERNATIONAL
HOLDINGS LIMITED) was taken over by a joint venture between the Hinduja group, the Non
Resident Indian Transnational group and IVECO Fiat SPA part of the Fiat group and Europe’s
leading truck manufacturing company. Ashok P Hinduja is the chairman of the company. The
Hinduja group also associated with Ennore Foundries Limited, Automotive Coaches and
Components Limited, and Gulf Ashley Motors Limited.

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The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok Leyland
Project Services. The chief competitors of the company are;

          Mahindra
          Volvo
          Tata Motors
          Eicher
          MAN
          AMW

With a commanding strength of the about 12,000 employees the company is looking forwards to
enhance the sxope of its action. It is aiming at expanding its production operation overseas to
make it a more globally accessible company. It is looking to acquire a small to medium sized
commercial vehicle manufacturers in China and other developing nations, which have an
established product line. An example would be the 2007 acquisition of the Czech based Avia’s
truck business rechristened Avia Ashok Leyland Motors.

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Be among the top Indian corporations acknowledged nationally and internationally for

   -   Excellence in quality of its products.
   -   Excellence in customer focus and service.


Be a leader in the business of commercial vehicles,excelling in technology, quality and value to
customer fully supported by customer service of the highest order and meeting national and
international environmental and safety standards.


Gemba is a Japanese word meaning “Real Place” where the real action takes place.

In the manufacturing industry, there are 3 major activities directly related to earning money,
developing, producing and selling products.

                                                                                    23 | P a g e

   General     Market Load
               Iron ore
               Stone/ Marble
 Bulk Material Sand/ brick/ blue metal
               Road Construction
               Iron Products
     Agri/     Housing G2
  Perishable Poultry
               Food Grains
               Live Stock Trnspt

                                         24 | P a g e
               Captive Use
               Parcel Loads
               LPG Cylinder
               Car Carrier
               Scooter Carrier
               Tisco Mat
  Applications White Goods
               Timber/ wood
    Tankers    Others (oil)
               Transit mixers (RMC) G1
               Fly Ash
    Related    Granite slab

 In this particular table of application mapping it shows that how a particular set of sub
application comes under head of one industry. So that its makes clear understanding of the type
of product required for thr particular application and for which type of industry application use.

This in turn helps to understand the particular need of the customer.

                                                                                      25 | P a g e
Products of Ashok Leyland:-
      1. LCV/ICV Trucks-

          i.       912

          ii.      1112

      2. 4X2 Haulage –

          i.       Comet 1611

          ii.      1612

          iii.     1613
          iv.      1613S – SFC1 Haulage
          v.       CG2 1616H
          vi.      1616

    Semi Forward Control
    Comet Gold

                                          26 | P a g e
           vii.    1616S – SFC Haulage

      3. 6X2 and 6X4 MAV3 Haulage

           i.      2214 (6X2)

           ii.     2214 Super (6X2)

           iii.    2514 (6X2)

           iv.     2516 (6X2)
           v.      2516 (6X4)

           vi.     2516 H (6X4) RMC4

           vii.    2518H (6X2)

    MAV- Multi Axle Vehicle
    Ready Mix Concrete

                                         27 | P a g e
       4. 8X2 MAV Haulage
          i.   3116H

          ii.  3121H
       5. 4X2 Tipper

            i.         1613 ST ( SFC Tipper)
            ii.        CT5 1613H Tipper

          iii. CT 1616
          iv.  1616 ST – SFC Tipper BSIII6
       6. 6X4 MAV Tipper

            i.         2516H / 4C
            ii.        2516T

    Comet Tipper
    Bharat stage III

                                               28 | P a g e
          iii. 2516T HD
          iv.  2518T HD
          v.   2516 H3/4
       7. Tractor

           i.         3516TT7
           ii.        3518TT

           iii.       4019TT

           iv.        4921TT

    Tractor Trailer

                                29 | P a g e
Work Done Till Now:-
The work done till now in Ashok Leyland was first to understand the functionality of the
organization marketing and sales team, so there is proper process in order to reach out for the
customers in the organization.

First to start with we need to understand the process of market mapping wherein there is a deep
study of –

    1. Application analysis
    2. Present status
    3. Predicting the future trend of various applications

In application analysis the application wise products are classified according to their engine
specifications, GVW8 and other special requirements for the particular type of application. Then
after careful analysis of application present status of the product is being checked which is being
checked by looking for the current TIV 9, market share of AL10 and AL standing in the particular
market and finally future trend of applications are being carried out in order to check the
potential of products offering to the particular application.

Source: AL portal 1

  GVW- (Gross Vehicular Weight)it the gross weight of the whole vehicle including the body, cabin and capacity of
load. Eg in 1613 GVW is 16 tones and in 2518 GVW is 25 tones.
  TIV – (Total IN Volume) This is the total number of commercial vehicles in the particular market region.
   Ashok Leyland

                                                                                                     30 | P a g e
The second step is to understand the customer’s business, its important to execute this process to
that right kind of product consulting can done for the customer which will be beneficial for
customer and in longer run for the organization. In this we first indentify the key business drivers
for the customers like their main industry they function, applications which they cater etc. then
customer profiling is done according to the information gathered. According to the information
then key customers are identified then customer interactions are being carried out in order to
judge the exact requirements and needs , thus they can be consulted on the particular product to
buy. Here is the architecture explained pictorially in order to interact with a customer:-

Source: AL portal 2

Then we study the industry trends and develop a knowledge bank of that particular industry and
develop a particular applications setting for the customer.

Finally the customized options of products and services are being formulated for the customers ,
this is how each customer in Ashok Leyland is being handled. There is pictorial representation of
the whole process shown further.

                                                                                        31 | P a g e
32 | P a g e
Delhi Region market Study:-
In Delhi there is vast field of transport contractors present in this capital territory of India.

               The various HUBS present in Delhi are:-

               1.   Sanjay Gandhi Transport Nagar
               2.   Azadpur
               3.   Punjabi Bagh
               4.   Tughlakabad
               5.   Badarpur

Hubs have offices and workshops of the transport contractors of various profiles, wherein they
operate from. According to the applications of the products their total volume as well as volume
of Ashok Leyland’s product is being captured in the Delhi region.

                           Application-wise Tractor-Trailer Market - Delhi
              200          186
              140    133

  AL vs TIV

                                      101                                                               AL
                                 57              60
               60                                             50
               40                           31           28
                                                                        16        13          12
               20                                                   8         6           4


This particular graph explains comparison of tractor trailer products of Ashok Leyland with the
total strength of the trucks in the market. This shows us the potential what Ashok Leyland can
have in particular applications in particular region. Similarly other products potential can be
explained in particular applications in Delhi region.

                                                                                              33 | P a g e
                                    Application-wise 4X2 FF Market - Delhi
                    500   472
                    300             278 273
  AL vs TIV

                    250                       206                                                    TIV
                    200                             165
                    150 106 132
                    100                       61          66     70
                                                    53                 44 42 39 34 32 29
                     50                                         13    10 9                25 23 11
                                                                             7 10 3   7  3   4  0  07 04


                                     Application-wise 4X2 SF Market - Delhi



              200                                                                                   AL     TIV


              100                                                           83

                                0                                     0                 0
                            Sand/ brick                         Road Construction       Petroleum

                                                                                                    34 | P a g e
                                     Application-wise MAV Market - Delhi


        AL VS TIV

                    300                        269
                                       258                                                                         AL
                    200                                   164
                            138                                  138

                    100              80      77                          84     75         67    58
                                                      35        29     20      14         19    16
                                                                                                        0 4
                                 Load    White Courier-Logistics
                          MarketIndl Gen Goods Goods              Edible Oil Grains / Pulses/ Sugar VanPlywood
                                                          Petroleum       Chemicals Refrigerated Timber/

                                     Application-wise 4X2 Tipper Market - Delhi

            45                                                                                   43



            25                                                                                                    TIV


                                                     10                              11

             5                         2
                                      Building Material                             Road Construction

                                                                                                              35 | P a g e
                             Application-wise 6X4 Tipper Market - Delhi


                                                                                                                AL   TIV


             60         53

                                                                          3                           5
                                                 0                                              0
                    Road Construction       Flyover/Metro Rail       Housing               Building Materials

                         Application-wise Pvt. Passenger Market - Delhi
            300                280


            200                                                                                                      AL

            150                                                                                                      TIV


                                                11                            14
                                                                          0                     0      6
                  Luxury long distance (>   School/ college bus City bus/ stage carriage   Contract carriage
                         300 kms)

                                                                                                           36 | P a g e
Study of exiting CRM process:-
In Ashok Leyland there is a CRM /DMS tool available which is know as customer connect in
the organization. This tool helps in capturing the customer information and reviewing it for
further details. The focus of this project would be to incorporate appropriate use of the software
with inclusion of more help tools available in the market. As per the confidentiality of the tool
interface the process carried out in tool is being explained further in form of flow charts, steps
etc. thus wont be able to present the tool screen shots.

The steps involved in the sales process carried out in CRM tool are:-

               Lead generation

               Prospecting

               Sale Order

               Allotment

               Invoice

               Dispatch

               Sales Return

Lead Generation:-
In lead generation customers are contacted and whosoever is interested in buying the product is
being noted and being noted as the possible lead, then this lead is being targeted in order to
change into a prospect customer.

Prospecting :-
When a prospect customer is being created then that particular customer is being contacted and
that particular customer is quoted price , consulted on product as per the applications & industry
where is he functioning. When the prospect agrees to buy the product the sales order is being

Sales Order:-
The following process of sales order is being explained in the following flow chart :-

                                                                                         37 | P a g e

                                                                                      Latest Version of the Quote
                                                                                      details will be populated in S.O.

                                    Record Customer Purchase Order                    In CRM, different Quotes are
                                      Number / Financer D.O. No.                      prepared for different Variants of
                                                                                      the same model.

                                                                                      Doc. Reference No. / P.O-D.O.
                                    Populate Customer/Party Name,                     No.
                                       Address, Contact Details

                                     Populate Customer Preferences
                                    (Item Info.) Model, Color, Variant,
                                    Application, Route, Segment etc.

Process escalation                  No      Is Quotation Time &
to Sales Manager
                                              Cost Terms Valid
   for Approval


    Is Approved


                                                                                   Procurement of
                                             Is Vehicle In Stock                      Customer
Inform Customer for                                                                Preferred Model
 inability to process
                                                                                   Notify Customer
                                                                                   in Case of Delay
                                                                                    in Procurement
                                               Is Reference        No
                                               Applicable ?

                                                         Yes                            Reference can be any of the
                                                                                        following :
                                                                                        1. Sales Executive.
                                         Populate Reference Details                     2. Broker.
                                                                                        3. Existing Customer.
                                                                                        4. Financer.
                                                                                        5. Employee.

                                                Is Financer         No
                                                Applicable ?

                           Record/Populate Finance Details with Scheme No.,
                             Name, Branch, Case No. Loan Amount, Down
                          Payment, Installment Amount, No. of Installments, Rate
                               of Interest, D.O. Number, Disbursed Amt.

                                                                                                        38 | P a g e
             Is Insurance        No
             Applicable ?

                                                  Is Insurance
                                                  Managed By
                                                   Customer ?

     Record Insurance Information                         Yes
Insurance Co., Branch, Contact Person,
          Insurance Scheme.

 Populate Sales Executive Details like,
Employee No., Name, Sales Group etc.

        Populate Vehicle Cost                               Item/Price Master

                                          Different Taxes can be configured for various
                                          tax structures applicable in various states
                                          1. L.S.T.,
                                          2. C.S.T.,
        No     Is Tax                     3. VAT 12.5%
             Applicable?                  4. VAT 4%,
                    Yes                   5. VAT 1%,
                                          6. Service Tax 10% + 2% surcharge &

 Check Tax Configuration & Populate                  Tax Master populates based on
        the Applicable Taxes                                 Configurtions

                                          Discount can be applied at various levels like,
                                          1. Before Taxes are applied.
                                          2. After Taxes are applied.
                                          3. Customer wise discounts.
                                          4. Item wise discounts.
                                          5. Store wise discounts & more.
        No   Is Discount
                     Yes                                 Populate from Discount
          Check Discount
        Configuration & Apply/
         Populate Discounts                         Create Separate Credit Note for

                                                                             39 | P a g e
                                 Calculate & Display Total Amount

                                                                         Displays receipts information
                                Specify Expected Date of Delivery
                                                                         created for Sale Order

                               Verify Credit Limit / Credit Days & Set
                                    Parameters for the customer

                                   No       Are Credit
Escalate for Approval                       Parameters

    Is Approved


  Inform customer
 about non-eligibility
   to process sale                      Confirm Sale Order

                                                                                             40 | P a g e
         Sale Order

                                        Populate Customer Purchase Order

                                             Populate Customer Details

                                          Populate Customer Preferences
                                        recorded during Sale Order Creation

                                                      Check Vehicle        No
                                                                                  Update Customer Preferences if

                                                                                           Procurement of
                                                    Is Vehicle In Stock                       Customer
                                                                                           Preferred Model

                                                                                          Notify Customer
                                                                                          in Case of Delay
                                                                                           in Procurement

  Escalate for                               No       Check Credit
   Approval                                           Parameters

                       Irrespective of Credit                                                    Along with Chassis No.,
                 Yes   Balance Check, Sale                                                       more aggregate
  Is Approved          Executive should be able                                                  information can be
                       to allot Chassis no. for a                                                collected like, Battery No,
                       specified period eg. 3-4                                                  Key No, CNG Kit No,
         No            days.                                                                     Service Coupon No etc.

 Inform customer                       Allot Chassis No. for this customer/sale
    about non-                                          order
    eligibility to
process allotment

                                                       Is PDI to be       Yes                Continue with PDI
                                                        performed                            (Service) Process


                                                                                                                      41 | P a g e
Sales Invoice:-

   Select Sale
     Order /

                             Populate Customer Purchase Order

                               Populate Customer/Party Name,
                                  Address, Contact Details

                                                                                Populate Battery No, Key
                              Customer Preferences (Item Info.)                 No, CNG Kit No, Service
                              Model, Color, Variant, Application,               Coupon No based on
                                    Route, Segment etc.                         Selected Lot (Chassis)

                                                                                 Reference can be any of the
                                         Is Reference      No                    following
                                         Applicable ?                            1. Sales Executive.
                                                                                 2. Broker.
                                                                                 3. Existing Customer.
                                                  Yes                            4. Financer.
                                                                                 5. Employee.

                                 Populate Reference Details

                                         Is Financer       No
                                         Applicable ?


                  Populate Finance Details with Scheme No. Name, Branch,
                    Case No. Loan Amount, Down Payment, Installment
                  Amount, No. of Installments, Rate of Interest, D.O. Number,
                                        Disbursed Amt.

                                                                                                     42 | P a g e
             Is Insurance        No
             Applicable ?

                                                  Is Insurance
                                                  Managed By
                                                   Customer ?

 Record/Populate Insurance Information                    Yes
Insurance Co., Branch, Contact Person,
          Insurance Scheme.

 Populate Sales Executive Details like,
Employee No., Name, Sales Group etc.

        Populate Vehicle Cost                               Item/Price Master

                                          Different Taxes can be configured for various
                                          tax structures applicable in various states
                                          1. L.S.T.,
                                          2. C.S.T.,
        No     Is Tax                     3. VAT 12.5%
             Applicable?                  4. VAT 4%,
                    Yes                   5. VAT 1%,
                                          6. Service Tax 10% + 2% surcharge &

 Check Tax Configuration & Populate                  Tax Master populates based on
        the Applicable Taxes                                 Configurtions

                                          Discount can be applied at various levels like,
                                          1. Before Taxes are applied.
                                          2. After Taxes are applied.
                                          3. Customer wise discounts.
                                          4. Item wise discounts.
                                          5. Store wise discounts & more.
        No   Is Discount
                     Yes                                 Populate from Discount
          Check Discount
        Configuration & Apply/
         Populate Discounts                         Create Separate Credit Note for

                                                                                43 | P a g e
                         No     Is willing to make
                                RTO Registration


                          Collect RTO Region, Amount

                                                              Various State wise RTO
                        Generate RTO Documents as per
                                                              Documents and Print Layouts
                             system configurations
                                                              can be configured

                        Calculate & Display Total Amount

                        Specify Expected Date of Delivery

                                                               Displays cash/bank receipts
                       Check Credit Limit & Credit Days for
                                                               information created for Sale
                                 the customer

  Escalate for             No    Is Credit Limit/
   Approval                       Days Cleared

                                                               Warranty period Information
                                                               with expiry dates for various
                 Yes                                           vehicle components. Like
  Is Approved
                                                               Battery, Tyres, Engine etc

         No             Warranty Details to be populated/
                        recorded on the basis of Model.
Inform customer
   about non-
   eligibility to
  process sale
     invoice                       Is PDI to be     Yes              Continue with PDI
                                    performed                        (Service) Process


                                                                                   44 | P a g e
 Select Sale
 Sale order

                                    Populate Customer Purchase Order Number

                                    Populate Customer Name, Address, Shipping
                                           Address, Contact Details etc.

                                    Record Warehouse information from where to

                                   Populate vehicle details like Chassis No., Model,

                                                                                       Items Check List
                                         No      Validate Check List                   1. Toolkit
         Record Missing List                       of Items to be                      2. Medikit
                                                      delivered                        3. RTO Documents
                                                                                       4. Sale Declaration
                                                           Yes                         5. Accessories etc.

        Add Items those are
                                                 Populate Items List
       missing as per check list

                                               Populate/Enter Dispatch

                                                 Populate Amount &

                                                 Specify Due Date of

                                                                                                       45 | P a g e
Sales Return:-
  Select Sale

                 Populate Customer Purchase
                        Order Number

                  Populate Customer Name,
                  Address & Contact details

                   Populate Item Information

                  Specify Reason for Return

                                                 All the Financial postings are reversed
                 Reverse Financial & Inventory   & posted in the respective accounts.
                           Postings              Inventory is taken back in the
                                                 respective stores

                                                                            46 | P a g e
This is how the whole process of sales is being carried out in the CRM tool. This flow charts are
being formulated on discussion with the marketing and sales team of Ashok Leyland and the
various managers who use this tool, even the sales representatives at dealer end. Thus by
gathering the valuable information from the concerned people the process existing for the current
CRM application is being understood and various challenges forth coming in the particular CRM
applications is being notified which is mainly in proper usage adherence, proper forecasting
tools incorporation, and more enhancements in ease of operation like automation of
certaion process.

      Easy track records for the existing customers
      Easy database handling
      Proper invoicing and ease of dispatch tracking
      Information can be view at all level of the organization
      Proper documentation


      Forecasting is a challenge
      Automation is required at certain levels for ease of work
      Varsity of data is a issue
      Proper adherence require in procedures

Work To be Done:-
What I aim to do in my project report is that after collecting the questionnaires from all the
customers, I would analyze the responses of the customers. For this I plan to use data analysis
techniques such as Factor analysis (to show correlations among the different set of variables).

Then I would be calculating the customer lifetime value of the customer group of Ashok
Leyland. Thereafter I will map the CLV and Customer satisfaction in order to find out the gaps
present in the system, thus will bring valuable suggestions in the exiting CRM system and
methodology in order to effect in implementation.

                                                                                     47 | P a g e
     AL portal ( Intranet Database of Ashok Leyland)
     Ashok Leyland Virtual library


  1. MALHOTRA NARESH K., 2008. Marketing Research- an applied
     orientation. Fifth Edition, PHI Learning Private Limited.
  2. Philip Kottler , fifth edition, Marketing Management
  3. Kristin Anderson and Carol Kerr , Customer relationship Management

                                                                   48 | P a g e

    Ashok Leyland Customer Satisfaction Survey
    This Survey is being conducted in order to judge the customer satisfaction within the customers group of
    Ashok Leyland.

    Name *

    Organisation *

    Industry Type

    Primary Application *

    Sub Segment Application *

    Vehicles Owned

       912
       1112
       Comet 1611
       1612
       1613
       1613S-SFC Haulage
       CG 1616H
       1616
       1616S - SFC Haulage

                                                                                                 49 | P a g e
   2214 ( 6X2)
   2214Super (6X2)
   2514(6X2)
   2516(6X2)
   2516(6X4)
   2516 (6X4) RMC
   2518H (6X2)
   3116H
   3121H
   1613 ST (SFC Tipper)
   CT 1613H Tipper
   CT 1616
   1616 ST-SFC Tipper BSIII
   2516H/4C
   2516T
   2516T HD
   2518T HD
   2516 H3/4
   3516TT
   3518TT
   4019TT
   4921TT

                               50 | P a g e
    Cutomer Profile

                                             FTU   1-3 Years     4-6 Years   7-9 Years    More
                                                                                         Than 10
           Small Fleet(1-29)
     Medium Fleet( 30- 50)
       Large Fleet (51- 100)
    Very Large Fleet (<100)

    Q1 )What Is the sorce Of information About Ashok Leyland ?

       Through A call By Sales Representative
       Ads In Newspaper/Magazine/Television etc
       Walked in Dealer Outlet
       reference from Others
       Website

    Q2 ) How often you buy trucks from Ashok Leyland?

       Never
       Rarely (within 1 year)
       Sometimes ( within 6 months)
       Often ( every Alternate Month)
       Always (Every Month)

    Q 3) How Satisfied are you with the overall purchase process in AL?

       Fully Dissatisfied
       somewhat Dissatisfied
       niether satisfied nor dissatisfied
       Somewhat Satisfied
       Fully Satisfied

                                                                                            51 | P a g e
Satisfation On Vehicle delivery :-

                                         1       2       3       4       5
             Fit & finish
    Information Dos &
Body Build Suggestions
    Knowledge delivery
       Payment Facility
       Product Training
         Dirver Training
     Mechanic Training

Responses For Product Satisfaction:-

                                     1       2       3       4       5
        Fuel Economy
         Loading Ease
     Span Of Loading
       Payload/ GVW
 Environment Factors
      Aesthetic Value
   Maintainance Cost

Other Services Satisfaction Responses

                                                                         52 | P a g e
                          1   2   3   4   5
   After Sales Service
        Vehicle repair
   Workshop Facility
       Parts avaibility
        Parts Quality
   Finance Incentives
Organisation as Whole
Sales Representatives
                of AL
Sales Representatives
            of Dealer
        Govt policy &
         Resale value
  Resaleability - Time

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