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Customer satisfaction to drive volumes at Ashok Leyland 

Sudarshan Kumar  
Bangalore, March 10: Ashok Leyland is changing lanes to get ahead in the market share sweepstakes. For the company, the road to volumes will now be paved with customer satisfaction.

Driven by this vision, Ashok Leyland is putting in place a customer satisfaction index within six months to reorient itself from being sales-driven to customer-centric.

The index will be based on parameters including products across its various vehicle platforms, delivery schedules, ability to give knowledge and information to the customer, pricing, positioning, availability, support in terms of warranty, parts, financing and resale price. With its 250-plus dealer network and 500 retail outlets stocking its branded spares -- Leyparts -- Ashok Leyland is concentrating on getting feedback from customers through close surveys.

Putting the customer in the driver's seat, Ashok Leyland executive director for marketing Amol J Sandil believes, will translate into hard numbers. The upbeat mood is based on fundamental changes within that saw the commercial vehicles company turn in a small net profit in the first half of this fiscal after dipping into the year before and take its market share to 33.8 per cent (by February 2000) from 26 per cent last year. While Sandil puts a conservative growth estimate on sales at around 5 to 6 per cent, the future does look brighter with the three-pronged marketing initiative to drive volumes.

Apart from customer satisfaction, the company plans to work on increasing its geographical penetration (move away from its image as a southern player) and identifying market segments to better exploit them. Sandil told The Financial Express that the motto was ``to give the customer what he wants, in time and increase his satisfaction level''.Sales were up 76 per cent (year-on-year) in February 2000 to 3394 units and for the 11-month April 1999-February 2000 period by 41.5 per cent to 29,754 units.

Sandil said, however, the growth was due to an overall improvement in the economic scenario after two years of shrinking sales and would taper off to a more sustainable level.

The company is looking at taking on the competition in its strongholds in the North and East by penetrating the interiors with service and retail outlets. Additionally, by June it will have 7 new dealers including 3 in the North, 2 in the East and one in either MP or UP. With 1200 Euro I vehicles already in the market, engines on all its three platforms -- Ashok Leyland, Iveco and Hino -- will be Euro I compliant from April 1.

Oscar II for value chain
Steered by consulting firm AT Kearney, ALL is implementing an optimisation plan for systems and resources (Oscar II) for its outbound value chain. The project will take into account identification of customer segments, prospecting and forecasting demand to translate it into manufacturing requirements and manufacturing plans on a weekly basis. The rolling plan in 6-week cycles will be flexible to incorporate changes online.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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