Financial Daily from THE HINDU group of publications
Monday, May 15, 2006
Financial Daily from THE HINDU group of publications Monday, May 15, 2006 |
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Corporate
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Outlook Marketing - Customer Relationship Management Ford sees rising demand for total maintenance plan Our Bureau
Safe and secure 45 per cent of all customers opt for extended warranties More customers in the South buy add-on products Rs 40,000 of accessories sold with every Endeavour
Chennai , May 14 Ford India is seeing a growing demand for the total maintenance plan scheme it has introduced and increasing business in sale of accessories. According to Mr P.K. Umashankar, General Manager (Customer Service Operations), one of the emerging trends is the increasing number of customers opting for extended warranties and total maintenance plan. Both are optional products that customers can go in for when they purchase a Ford vehicle. Almost 45 per cent of all Ford customers go in for extended warranties now compared to 5-8 per cent about five years ago. Ford India sold about 29,000 cars in 2005-06 against 15,000 five years ago. The extended warranties and the total maintenance plan protect the maintenance cost for the customer and also ensure that there is no spike in the spend pattern, he said. More customers in the southern States opt for these add-on products than in the North. Ford India, according to him, used to sell 10 total maintenance plans a month a year back; this figure has gone up to 150 now. For an Ikon, Ford India's first product in the country and which has now been positioned as an entry-level mid-size car, a two-year or 30,000 km total maintenance plan works out to Rs 11,900, which translates into 39 paise maintenance cost a km. For a three-year or 30,000 km plan, the cost is Rs 33,300. The total maintenance plan also has an extended warranty built in. Mr Umashankar said that customers can purchase the total maintenance plan through an equated monthly instalment plan too. He also said that the company's accessories business was growing. Of the total parts and accessories business, accessories now account for one-third against just one-tenth till the middle of last year. This business is worth about Rs 12 crore a month. The accessories could be anything from a leather seat cover or a stereo system if it is not a standard fixture in the car, to anti-theft system, rear spoiler, or remote boot lid releaser. For every Endeavour - the company's sports utility vehicle - sold, Ford also sells Rs 40,000 worth of accessories. Mr Umashankar said that the company has tied up with four insurance companies - ICICI Lombard, Iffco Tokio, Bajaj Allianz, and New India Assurance - for Ford Preferred Insurance.
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