Honda Scooters and Toyota Kirloskar rank highest in dealer satisfaction based on the results of the inaugural NFO Automotive India Dealer Satisfaction Study (DSS).
The 2003 DSS examines the automotive dealer's satisfaction with the vehicle manufacturer on the following parameters : satisfaction with product, order & delivery, pricing & margins, sales & marketing, after-sales service & parts, warranty, sales representatives, service representatives, training, and manufacturer relationship. The DSS study is based on TRI*M, NFO's proprietary stakeholder management system. The TRI*M index score provides a measure of the relationship strength that a given manufacturer enjoys with its dealers.
"The industry average score of 64 reflects a relatively low level of satisfaction and indicates that dealers are vulnerable to defections," said Rajeev Lochan, General Manager at NFO Automotive. "The study reveals that there are more 'uninvolved' (neither satisfied nor committed) dealers than 'partners' (both satisfied and committed) in the automotive industry."
The key to building partners is to focus on the most critical areas that impact dealer satisfaction and commitment to the manufacturer. They are : effectiveness of brand positioning, builds high quality products, builds products according to customer's needs, and concern for dealer profitability.
"It is not surprising that dealers expect their principals to be concerned and supportive of their profitability," adds Lochan. "However, the study clearly reveals that dealers are more concerned about product and branding issues that lend to long-term business sustainability."
Honda Scooters and Toyota Kirloskar lead their respective segments with an identical score of 102, which is significantly higher than the second-ranked manufacturers. At this level of performance, both these manufacturers have been able to develop strong relationships with their dealers.
"Meeting dealer expectations on issues related to product, branding, and after-sales support are among the common strengths for both these manufacturers," comments Lochan. "Consequently, Honda Scooters and Toyota Kirloskar enjoy a high degree of commitment from their dealers."
TVS Motor and Hyundai rank second in the two and four-wheeler segments, respectively. These manufacturers have also developed strong relationships with their dealers. According to its dealers, TVS excels in the areas of product quality and service support. In the case of Hyundai, dealers are appreciative of the company's efforts in building and sustaining a strong brand.
The DSS was conducted from November 2002 through January 2003. This study is based on responses from 966 two-and four-wheeler dealers from over 80 leading cities in India. The DSS will be conducted on an annual basis to provide the industry with the most up-to-date information on dealer satisfaction in the marketplace. |
