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The Study of Consumer Preference Amp Consumer Perception Towards Various Brands of Cars
The Study of Consumer Preference Amp Consumer Perception Towards Various Brands of Cars
The Study of Consumer Preference Amp Consumer Perception Towards Various Brands of Cars
RESEARCH REPORT
ON
THE STUDY OF CONSUMER PREFERENCE & CONSUMER
PERCEPTION TOWARDS VARIOUS BRANDS OF CARS
Submitted To
Kurukshetra University, Kurukshetra
In the partial fulfillment for the Requirement for the degree in
MASTER OF BUSINESS ADMINISTRATION
SESSION (2008-2010)
SUBMITTED TO
SUBMITTED BY
SANDEEP SINGH
LECTURER
MBA DEPT.
ACKNOWLEDGEMENT
Life is full of interaction. In our daily life we get ahead by giving hope to each other.
When a person is doing some important work whether as a guide, helper, supporter i.e., a true
friend is needed. And one feels obliged to them.
There is always a sense of gratitude which one feels towards his/her Guru or Mentor who has
helped him/her at one point of time or the other.
I am thankful to Mr. RINKU AGGARWAL who was always there to give my spirits a boost
and whose guidance it would not have been possible for me to complete my project report
successfully.
I shall be falling in my duties if I do not express my gratitude to my friends and other persons
for their useful advice at various stages.
Last but not the least; I would like to thank the Almighty God for his blessings showered on
me during the project report.
SANDEEP SINGH
PREFACE
DECLARATION
I,
SANDEEP SINGH
student
of
SHREE
RAM
MULKH
INSTITUTE
OF
MANAGEMENT & TECHNOLOGY (KOHRA BHURA) here by state that the Research
Report
entitled
STUDY
OF
CONSUMER
PREFERENCE
&
CONSUMER
SANDEEP SINGH
MBA (4TH SEM)
SRMIMT,KHORA BHURA
Table of Contents
Sr.No.
CONTENT
PAGE NO.
1
2
3
Acknowledgment
Preface
Declaration
II.
III.
IV.
INDEX
CONTENTS
CHAPTER 1- Introduction
1.1. Profile of Study
1.2. Justification of Study
PAGE NO.
1 37
1 35
36
37
37 44
45 48
46
47
47
48
49 63
64 66
65
66
I.
IV.
AUTOMOBILE INDUSTRY
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that
Indian automobile industry will achieve mass motorization status by 2014.
INDUSTRY OVERVIEW
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto industry
was overlooked by the then Government and the policies were also not favorable. The
liberalization policy and various tax reliefs by the Govt. of India in recent years has made
remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently
growing at the pace of around 18 % per annum, has become a hot destination for global auto
players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development of an economy,
and India is no exception to it. With the growth of transportation system the Automotive
Industry of India is also growing at rapid speed, occupying an important place on the 'canvas'
of Indian economy.
Today Indian automotive industry is fully capable of producing various kinds of vehicles and
can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.
SNIPPETS
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market.
India is the fourth largest car market in Asia - recently crossed the 1 million mark.
SEGMENT KNOW-HOW
Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda
contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS
makes 82% of the mopeds in the country.
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the
market share. Among the passenger transport, Bajaj is the lead
three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52%
share in passenger cars and is a complete monopoly in multipurpose vehicles. In utility
vehicles Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata
Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.
MISCELLANEOUS
Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the
country by the second half of 2008. It would be set up by city-based Prajay Engineers
Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile
financing institutions and insurance services to create a complete range of services required
for both auto companies and customers. It will also have a multi-purpose convention centre
for auto fairs and product launches.
Reva
Ambassador
Fiat Palio
Hyundai Santro, Getz,i10
Chevrolet Opel Corsa
Maruti Zen, Wagon R, Versa, Esteem,,Ritz,A-star
Ford Icon & Fiesta
Toyota Innova
Tata Safari
Mitsubishi Lancer, Mitsubishi Cedia
Honda City ZX
Mahindra Bolero
Toyota Corolla
Ford Mondeo & Endeavour
Chevrolet Forester
Skoda Octavia & Combi
Honda Civic
Honda CR-V
Maruti Suzuki Grand Vitara
Terracan & Tucson
Mitsubishi Pajero
Audi A4
Opel Vectra
Honda Accord
Mercedes C Class
Toyota Camry
Volvo
Maybach
IN BRIEF
The origin of automobile is not certain. In this section of automobile history, we will only
discuss about the phases of automobile in the development and modernization process since
the first car was shipped to India. We will start automotive history from this point of time.
The automobile industry has changed the way people live and work. The earliest of modern
cars was manufactured in the year 1895. Shortly the first appearance of the car followed in
India. As the century turned, three cars were imported in Mumbai (India). Within decade
there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was
created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by
Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost
that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style
rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder
engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited
more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than
their predecessors. The 1940s saw features like automatic transmission, sealed-beam
headlights, and tubeless tires.
INDUSTRY INVESTMENT
According to Commerce Minister Kamal Nath, India is an attractive destination for global
auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India,
despite the absence of specific trade agreements.
CURRENT SCENARIO
On the cost front of Indian automobile industry, OEMs (Original Equipment
Manufacturer) are eyeing India in a big way, investing to source products and
components at significant discounts to home market.
On the revenue side, OEMs are active in the booming passenger car market in India.
OVERVIEW
Snippets
Maruti Udyog has set up the second car with an investment of Rs 6,500 crore.
Tata Motors will be investing Rs 2,000 crore in its small car project.
General Motors will be investing Rs 100 crore and Ford about Rs 350 crore.
Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of
investment.
Why India
The economy of India is emerging. The following table shows the ranking of India in the past
four years.
Rank
2009
2008
2007
2006
China
China
China
China
India
Thailand
Thailand
Thailand
Thailand
India
USA
USA
Vietnam
Vietnam
Vietnam
Indonesia
USA
USA
India
Vietnam
Russia
Russia
Indonesia
India
Korea
Indonesia
Korea
Korea
The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per
cent.
CURRENT SCENARIO
The Indian automobile industry crossed a landmark with total vehicle production of
10 million units.
The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765
units in 2008-09.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against
3,18,430 units in 2008-09.
OVERVIEW
Snippets
in
the
segment
estimated
at
about
10,000
unit
annually.
In the two-wheeler segment, according to the report, the motorcycles would clock 11.5
per cent rise during 2005-2008 over its siblings-scooters and mopeds. Scooters sales
would decelerate and mopeds would also see the same. Overseas market would present
huge opportunities for the two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy
commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks
would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per
cent.
Indian Auto Market Growth for the year 2008-09
The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as
against 78,97,629 units in 2008-09.
According to the Society of Indian Automobile Manufacturers (SIAM), car sales was
8,82,094 units against 8,20,179 units in 2008-09.
The growth of domestic passenger car market was 7.5 per cent
The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units
against 62,09,765 units in 2007-08.
Motorcycles had the upward march, 17.1 per cent in domestic market touching
58,15,417 units against 49,64,753 units in 2007-08.
Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in
2007-08.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against
3,18,430 units in 2006-07.
Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23
per cent growth in the year ended March 31, 2007.
Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237 units against 1,
19,924 units in 2006-07.
Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862 units in
2006-07.
The Indian auto parts industry is significantly fragmented with a large number of players
having a turnover of less than US$10 million per year. The industry directly employs about
2,50,000 people and has an annual turnover over US$ 56.3 billion.
Note: Nearly two-thirds of the auto component production is consumed directly by Original
Equipment Manufacturers (OEMs).
Market Advantage
India is the 11th largest Passenger Cars producing countries in the world and 4th largest in
Heavy Trucks.
CURRENT SCENARIO
OVERVIEW
Snippets
Segments
Cars/ SUVs
Two-wheelers
CVs
Tractors
Companies
Suzuki
Honda
Toyota
Mitsubishi
GM
Daimler-Chrysler
Skoda
Fiat
Hyundai
Tata
Ford
M&M
TVS
Hero Honda
Yamaha
Kinetic
Bajaj Auto
LML
Tata
Ashok Leyland
Tatra
Swaraj Mazda
Mahindra & Mahindra
Volvo
Eicher-Mitsubishi
Escorts
M&M
L&T
New Holland
ITL-Renault
John-Deere
Punjab Tractors
Steyr
Particulars
Hyundai
Skoda
Ford
Honda
Particulars
Toyota Motor
Daimier Chrysler
Ford
Fiat
Sourcing Components.
COMPANY PROFILE
MARUTI UDYOG LTD. (MUL)
"
Count on Us" - Maruti Suzuki
Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be honoured with
an ISO 9000:2000 certificate. The company has a joint venture with Suzuki Motor
Corporation of Japan. It is said that the company takes only 14 hours to make a car. Few of
the popular models of MUL are Alto, Baleno, Swift, Wagon-R and Zen. The largest
automobile manufacturer in South Asia, Maruti Suzuki India Ltd., is a publicly listed
automaker in India and a subsidiary of Suzuki Motor Corporation of Japan, incorporated in
February, 1981. Largely credited for having brought in a revolution in the Indian automobile
industry, the automaker began its production in 1983 with Maruti 800. on September 17,
2007, Maruti Udhyog Limited was renamed Maruti Suzuki India Limited, while locating its
headquarters in Delhi. The manufacturer exports approximately 50,000 cars annually and has
a large domestic market of 730,000 sales annually. The manufacturer is presenting its
customers with applaudable models like A-star, Swift, Estillo, Wagon R, Alto, Grand Vitara,
etc.
QUICK FACTS
Year of Establishment
February 1981
"The Leader in The Indian Automobile Industry, Creating
Vision
Industry
Joint Venture
Works
http://auto.indiamart.com/maruti/
http://www.oppapers.com/essays/Indian-Automobile-Industry-Maruti
Brands
Maruti 800
Maruti Alto
Maruti Baleno
Maruti Omni
Maruti Swift
Maruti Versa
Maruti Vitara
Maruti Wagon-R
Maruti Zen
Maruti ritz
BOARD OF DIRECTORS
Mr. R. C. Bhargava, Chairrman
Mr. Shinzo Nakanishi, Managing Director & Chief Executive Officer
Mr. Keiichi Asai, Director (R&D).
Mr. Hirofumi Nagao, Joint Managing Director
Mr. Tsuneo Ohashi, Director (Production)
Mr. Shuji Oishi, Director (Marketing & Sales)
Mr. Osamu Suzuki, Director
Mr. D. S. Brar, Director
Mr. Amal Ganguli, Director
Ms. Pallavi Shroff, Director
Mr. Manvinder Singh Banga, Director
The engine of Ritz is a gem and the best petrol engine of 2009.
.... I own a Ritz but would agree COY goes to Ritz. Nano is not
2008
Number one in JD Power CSI for the sixth time in a row - the
only car to win it so many times.
M800, WagonR and Swift topped their segments in the TNS Total
Customer Satisfaction Study Leadership in the JD Power Initial
Quality Study - Alto number one in its segment for the 2nd time
in a row, Esteem number one in its segment for the 3rd year in a
row, Swift number one in the premium compact segment.
respected companies.
SALES PERFORMANCE
(Rs. in Lacs)
PARTICULARS
QUARTER
NINE MONTHS
FINANCIAL YEAR
ENDED
ENDED
ENDED
31.12.08 31.12.09
Domestic Vehicles Sold
31.12.09
30.06.2008
351,583
487,402
14,027
26,656
37,958
48,899
145,010 136,069
407,419
389,541
536,301
Net Sales
310,431 279,646
874,309 787,726
1,091,075
Total Income
322,079 293,837
909,516
821,177
1,135,387
Total Expenditure
264,831 245,363
764,078
692,645
955,614
(No.)
Export Vehicles Sold
137,127 122,042
31.12.08
7,883
(No.)
Total Vehicles Sold
(No.)
50,269
37,207
122,454
91,465
130,489
Net Profit
33,901
23,966
82,813
59,418
85,363
MILESTONES
1981
1982
1983
produced.
1984
1985
1986
1987
1988
1992
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Swift launched
COMPANY FLASHBACK
Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meet the
growing demand of a personal mode of transport, which is caused due to lack of efficient
public transport system. The incorporation of the company was through an Act of Parliament.
Suzuki Motor Company of Japan was chosen from seven other prospective partners
worldwide. Suzuki was due not only to its undisputed leadership in small cars but also to
commitments to actively bring to MUL contemporary technology and Japanese management
practices (that had catapulted Japan over USA to the status of the top auto manufacturing
country in the world).
A licence and a Joint Venture agreement was signed between Government of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
The objectives of MUL, then are as cited below:
Production of large number of motor vehicles which was necessary for economic
growth.
In 2001, MUL became one of the first automobile companies, globally, to be honoured with
an ISO 9000:2000 certificate. The production/ R&D is spread across 297 acres with 3 fullyintegrated production facilities. The MUL plant has already rolled out 4.3 million vehicles.
The fact says that, on an average two vehicles roll out of the factory in every single minute.
The company takes approximately 14 hours to make a car. Not only this, with range of 11
models in 50 variants, Maruti Suzuki fits every car-buyer's budget and any dream. India's
largest automaker, Maruti Suzuki has filed an 11% rise in the March 2010 sales on a YoY
basis. With the total sales standing at 95,123 vehicles in March 2
Jamshedji Tata
Year of Establishment
1945
Industry
Automotive
Business Group
Corporate Office
Bombay House
24, Homi Mody Street
Mumbai 400 001, India
Tel.: +(91)-(22)-56561676
Works
am@tatamotors.com
rbc@telco.co.in (for international inquiries)
http://www.motorbeam.com
http://www.tatamotors.com
SEGMENT
AND
BRANDS
PRODUCTS
Passenger
Cars
BRANDS
Indica V2
Indigo
Indigo Marina
Indigo SX
Indica V2 Turbo
Indica V2 Xeta
Indigo XL
Utility
Vehicles
Safari Dicor
Trucks
Buses
Defence
Sumo Victa
Starbus
Globus
LP / LPO 1510
LP / LPO 1512 TC
Turbo Bus
LP / LPO 1512 TC
Turbo Bus
LP 1109 Bharat
Stage II
Won the Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business
practices in the 'manufacturer - large' category, converred by the
Council for Fair Business Practices.
2002
Tata Indigo was voted as the 'most exciting new car' by the ICICI
Bank and Overdrive Awards.
AT A
GLANCE
1.FINANCIAL RESULTS:2009
Financial Year
2008-09 2007-08
(i) Gross Revenue 28599.27 33093.93
(ii) Net Revenue (excluding excise duty) 25660.79 28739.41
(iii) Total Expenditure 23908.35 25807.82
(iv) Operating Profit 1752.44 2931.59
(v) Other Income 925.97 483.18
(vi) Profit before Interest, Depreciation,
Exceptional items & Tax 2678.41 3414.77
(vii) Interest and Discounting Charges:
(a) Gross Interest and Discounting Charges 1073.10 541.56
(b) Adjustment/Transfer to Capital Account (399.42) (259.19)
(c) Net Interest and Discounting Charges 673.68 282.37
(viii) Product Development Expenses 51.17 64.35
(ix) Depreciation 874.54 652.31
(x) Exceptional item - Notional Exchange (loss)/gain (net) on Revaluation of Foreign
Currency Borrowings, Deposits and
MILESTONES
1945
1948
1954
1959
1961
1966
1971
1977
1983
1986
1989
1991
1992
1994
1994 Tata Sumo and LPT 709 launched. JV with M/s DaimlerBenz/ Mercdes-Benz and Tata Holset Ltd., UK.
1995
1997
1998
2000
2001
2002
1985
1993
2003
2004
2005
2007-08
2009
COMPANY FLASHBACK
Tata Motors Limited is the largest automobile company in India with revenues touching to
Rs. 20,483 crores (USD 4.7 billion) in the financial year 2004-05. It leads the market in
commercial vehicles in each segment and is the second largest in the passenger vehicles
segment. Globally, Tata Motors stands fifth in the medium and heavy commercial vehicle
manufacturer category.
Established just in 1945, the company's presence cuts across the length and breadth of the
country. More than 3 million its-manufactured-vehicles ply on the Indian roads since the first
one rolled out in 1954.
This company is the first from the country's engineering sector to be listed in the New York
Stock Exchange (Sep. 2004) and has also emerged as a global automotive company.
Through its subsidiaries, Tata Motors has engaged in providing engineering and automotive
solutions. With the pace of new product development, the company has launched Tata Ace, in
the year 2005, India's first indigenously developed mini-truck.
Tata Motor's 22,000 employees are guided with the vision, "best in the manner in which we
operate, best in the products we deliver, and best in our value system and ethics."
TATA NANO
Tata Motors Ltd on Thursday wheeled out the world's cheapest car, priced at 100,000 rupees
(2,500 dollars).
Here are key facts about the four-door, mini hatchback named the Nano, which is due to hit
the Indian market later this year.
Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan Micra and the
Smart.
Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high. Can seat four
to five people.
Engine:
two
cylinder
623
cc,
33
hour
(65
miles
per
hour).
Fiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter of Societ
Anonima Fabbrica Italiana Automobili Torino was signed. Among the members of the Board
of Directors, Giovanni Agnelli stood out in the group of investors and won recognition for his
determination and strategic vision. In 1902 he became the Managing Director of the
companyIn 1902 he became the Managing Director of the company. The name is an acronym
for Fabbrica Italiana Automobili Torino (Italian Car Factory of Turin). The history of Fiat
began many years ago, at the dawn of Italian industrialisation, in which the company has
always played a leading role. From that moment on, the Fiat brand spread throughout the
world and developed extensively.
Today, following a change in corporate culture and mentality, the name Fiat is still fraught
with meaning, and not only on account of the cars we produce cars with attractive styling
and exciting engines, cars that are accessible and improve the quality of everyday life - but
also on account of our heritage and tradition: let's take a stroll back in time through the
brand's history.
QUICK FACTS
Country
Italy
Year of Establishment
Industry
Automobiles manufacturing
Business Group
Contact Details
International Corporate
Headquarters
http:// www.fiat-india.com/
BOARD OF DIRECTORS
Palio Diesel
Petra Petrol
Petra Diesel
Fiat linea
Fiat 500
On 11 July 1899 at Palazzo Bricherasio, the company charter of "Societ Anonima Fabbrica
Italiana Automobili Torino" was signed. Among the members of the Board of Directors,
Giovanni Agnelli stood out in the group of investors and won recognition for his
determination and strategic vision. In 1902 he became the Managing Director of the
company.
The first factory was opened
The first factory was opened in 1900 in Corso Dante. 150 workers were employed there and
produced 24 cars, among which the 3/12 HP, not yet fitted with reverse gear. The Fiat logo,
oval on a blue background and designed by Biscaretti, was adopted in 1904
First wins in the races
The first Car Tour of Italy saw 9 Fiat cars arrive at the finish line. The first real competition
car, a 24 HP driven by Vincenzo Lancia, won the Sassi-Superga uphill race in 1902. Giovanni
Agnelli himself ran in the Second Tour of Italy and set a record in an 8 HP.
The company renovates its production
In a few years Fiat completely renovated its production: the cars were fitted with electrical
accumulators for the first time. The cardan transmission, a FIAT patent, began to be used. Fiat
cars continued to shine in the competitions and set several records.
precursor of the Station Wagon style. Moreover, these were the years of Fiat 1800, then 1300
and 1500.
From 1978 1990
Independent companies
Fiat's numerous operations were set up as independent companies. Alongside Fiat Auto the
following companies were founded: Fiat Ferroviaria, Fiat Avio, Fiat Trattori, Fiat
Engineering, Comau, Teksid, Magneti Marelli.
The Fiat Panda and the Fiat Uno
In 1980 a new utilitarian was styled by Giugiaro for Fiat and was called Panda. Two years
later the car that would become the emblem of Fiat Auto's renewal was born: the Fiat Uno. It
featured radical innovations in its electronics, choice of materials and the use of a clean
engine: the 1000 Fire.
Super-competitive pricing with space and features promises to make it encroach upon the
Swift territory We put both petrol and diesel variants through our rigorous test program.
Punto would compete in India with existing models like Skoda Fabia, Tata Indigo...
PERFORMANCE
Company Flashback
Fiat is a big industrial Group having more than one hundred years' experience in the motor
vehicle sector, designing, manufacturing and marketing cars, trucks, tractors, agricultural
machinery, construction equipment, motor vehicle engines and components, and production
systems. Currently the Group is present in 190 countries and it performs manufacturing and
service activities through Operating Sectors that can be divided into business areas.
Fiat Auto produces and sells automobiles under the Fiat, Alfa Romeo and Lancia brands and
light commercial vehicles (LCV) under the Fiat brand. The Group also controls Maserati and
Ferrari, the producer of luxury sports cars that excel for their exclusive characteristics,
technology and performance.
In India, Fiat is wholly managed by Fiat Auto Spa of Italy. Here the company owns the
brands Fiat , Alfa Romeo & Lancia. Fiat India is investing heavily in the countr
Quick Facts
Country
South Korea
Year of Establishment
1967
Contact Details
http://www.hundyigroups.com
Segment and Brands
Accent
Elantra
Getz
Hyundai i10,i20
Santro Xing
Sonata Embera
Tucson
Awards
Hyundai i10 wins all the prestigious awards of the year 2008-2009.
EEPC Award
2005
2003
2002
Hyundai Santro topped the 'JD Power Asia Pacific Intial Quality
Study (IQS)' that measures the product quality for three
consecutive years (2000, 2001 & 2002).
Hyundai Santro topped the 'JD Power Asia Pacific Apeal' study
that measures customer satisfaction for three consecutive years
(2000, 2001 & 2002).
Hyundai Accent topped the 'JD Power Asia Pacific IQS' for 2002
and the APEAL study for 2001 & 2002.
Company Flashback
Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is South
Korea's largest car maker. It is headquartered in Yangjae-Dong Seocho-Gu Seoul. HMC is
also the world's sixth largest car maker and operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea.
In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly
owned subsidiary of Hyundai Motor Company and is the second largest and the fastest
growing car manufacturer in India. Currently the company markets 32 variants of passenger
cars in six segments. Santro in the B segment, Getz in the B+, the Accent in the C segment,
Elantra in the D segment, Sonata Embera in the E segment and the Tucson in the SUV
segment.
HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over previous year. It is the country's fastest growing car company having rolled-out
10,00,000 cars in just 90 months since its inception and is the largest exporter of passenger
cars with exports of over Rs. 1,800 crores. The company has recorded a growth of 27.2% in
exports over the year 2004.
The company has been awarded the benchmark ISO 14001 certification for its sustainable
environment management
Project aims to understand and enunciate the working process of different automobile and
evaluating its outcome in the four- wheeler automobile sector. Over the past few years, there
has been tremendous progress made around the world in opening up travel and tourism
markets to the benefits of increased competition.
One of the main aspects of the project is to analyze the different products and services offered
and initiatives adapted by the four- wheeler automobile sector their product. Selling
intangible assets is one of the toughest jobs in the world. The project is more of a team
effort and will incur team returns.
REVIEW OF LITERATURE
Relevant literatures pertaining to the present study on four wheeler automobile industry are
included in this chapter. The literatures are helpful for proper understanding the four
wheeler automobile industry and its various related aspects. Review of literature is also
helpful in effectively fulfilling the objectives for which the research project has been
undertaken.
G.S. Dangayach and S.G. Deshmukh, in their study on Advanced manufacturing
technologies: evidences from Indian automobile companies in International Journal of
Manufacturing Technology and Management, reports the findings of an exploratory survey
on Advanced manufacturing technologies (AMT) administered in Indian automobile
companies. The objective of the survey is to assess the status of advanced manufacturing
technologies, identify advanced manufacturing technologies relevant to Indian automobile
sector companies, identify competitive priorities, and assess the degree of investment in
advanced manufacturing technologies. Responses from 68 companies are analysed and
presented.
RNCOS industry in their study of Indian Automobile Sector provides a forecast and
analysis based on various macro- and microeconomic factors, sector and industry specific
databases, and an in-house statistical and analytical model. This model takes into account the
past and current trends in an economy, and more specifically in an industry, to bring out an
objective market analysis. In this research main topics covered are: Study of the Indian
Dr V Sumantran
(Executive
Unit
and
towards the passenger car industry, rising demand for personal transport, inefficiency in the
public transportation system etc
Dr. Amit Kumar Dwivedi and Mr. Punit Kumar Dwivedi, in their article on Automobile
Sector: Industry Vs Indian Middle Class in Indian MBA concluded that that there are great
opportunities and possibilities in the automobile sector. But hike in the fuel price is
influencing the market of this industry.
There is a need of a very liberal policy for the fuel prices and requires a great good deal with
fuel supplying countries. Though, the performance of the industry is better instead of high
and unfavourable fuel policy.
The new launching of Tata's Nano 'One Lakh Car' which is also known as People's Car is also
a very good strategy to capture the middle class customers. Introduction of Nano and Bajaj
Lite will definitely affect the growth and sales volumes of cars which will also affect the
industry by reaching, catching the Indian middle class and fulfilment of their own car need.
Sunila George, Raghbendra Jha, Hari K. Nagarajan in their research paper on The
Evolution and Structure of the four-wheeler Industry in India studied the evolution of the
competitive structure of the two-wheeler industry in India. The evolution of the industry's
competitive structure is traced using Kendalls Index of Rank Concordance and the EvansKarras test of convergence. The industry seems to be characterized by oligopoly with the
onset of economic reforms not making much difference to industrial structure. Convergence
of sales and capacity at the level of the industry is conditional while it is absolute at the level
of the segment.
Dr A. Subbiah and S. Jeyakumar (Ph.D research scholar at PG and Research Department of
Commerce) in their market survey report on Automobiles: the Engines of Economic Growth
concluded that A sound transportation system plays a pivotal role in a countrys rapid
economic and industrial development. The well-developed Indian automotive industry ably
fulfils this catalytic role by producing a wide variety of vehicles. They also studied Size and
structure of the Indian automotive industry, production trends and exports trends. They also
concluded that the manufacturers must take necessary steps to increase the production of
automobiles in India. They should adopt latest technology and introduce new models to face
stiff competition from foreign manufacturers.
CONSUMER PREFERENCE
Consumer Preference is a business term which is used to capture the idea of measuring how
satisfied an enterprises customers are with the organization Efforts in a market place.
Every organization has customers of some kind. The organization provides products (goods
and services) of some kind to its customers through the mechanism of a marketplace. The
products the organization provides are subject to competition whether by similar products or
by substitution products. The reasons on organization is interested in the satisfaction of its
customers is because customers purchase the organizations products. The organization is
interested in retaining its existing customers and increasing the number of its customers.
By Fareena sultan:-Examines consumer preferences for forthcoming technological
innovations. Studies consumer response to different levels of technology over time. Looks at
preferences for existing and intermediate technologies when future ones are expected.
Focuses on technological consumer durables that are expected to evolve over time. The
primary contributions of this research are: an understanding of how consumer preferences for
a technology are affected by the time of adoption; an understanding of the value to consumers
of obtaining different levels of a technology, at different points in time; and the utilization of
parsimonious indices to assess consumer response to different levels of technology over time.
An empirical examination is conducted for high definition television (HDTV). Using survey
data, the study explores consumer preferences for HDTV, and for interim television
technologies. Managerial implications to aid product design, and the timing of introduction of
evolving technological innovations, are also discussed.
Companies routinely test the market to find out what customers like and dislike about
their products and competitors' products. This is usually done by an internal marketing
department or outsourced to a market research firm. Phone interviews, paper surveys,
electronic surveys, focus groups and consumer samplings are common methods for
gathering information.
Here is a popular example of market research: A customer has finished shopping and
paying for merchandise at a local grocery store. Before handing the receipt to her, the
cashier points to and explains that she has been invited to participate in a short survey
about her visit. If she chooses to participate, she will receive $5 off her next visit and a
chance to win a large monetary grand prize.
After gathering information, the next step for the company is to determine what it means.
Analysis of the information may lead the company to change the formula, packaging,
color, size or some other feature of the product. In the case of the suds in the shampoo,
the manufacturers may find that customers are continuing to prefer and associate the
foamy lather with high quality cleanliness, leading them to keep the same formula or
decide to add even more of the sudsing agent.
CONSUMER BEHAVIOUR
In todays challenging and competitive world of last changing technology, consumer tastes
are also characterized by fast changes. So to survive in the market the firms have to be in
touch with the changing consumer preferences. Marketers have to understand the consumer
behaviour and factors influencing the buying behaviour of the customers in order to be
successful in this dynamic and competitive environment.
Deborah J. Macinnis A notable human capacity is the ability to look to the future and
aspire to achieve desired states The marketplace provides rich sources of hope and invites us
to the endless pursuit of happiness. while some researchers recognize its importance,
definitions in the psychology, sociology, philosophy, medical, and religion literatures often
conceptualize hope in different ways. Understanding Hope and its Implications for
Consumer Behavior sheds light on the relevance and importance of hope to consumer
behavior. The authors explore the conceptual meaning of hope and a definition of hope and
the constituent elements that underlie it is articulated.
Culture
Sub Culture
Social Class
Family
Reference Groups
Personal Factors such as age and life cycle, education, occupation, life style,
personality, etc..
Learning
Memory
Attitude
PERCEPTUAL MAPPING
Consumers perceptions of products are developed in a complex way and are not easily
determined by marketers. However, a technique known as perceptual mapping may be used
in exploring consumers product perceptions. Since product can be perceived on many
dimensions (such as quality, price and strength) the technique is multidimensional in nature.
That is, it allows for the influence for more than one stimulus characteristic on product
perceptions, typically consumer feel out measuring scales to indicate their perceptions of
many characteristics and similarity of competing brands. Computer programs analyze the
resulting data to determine those products characteristics or combination of characteristics
that are most important to consumers in distinguishing between competing brands. Results of
this analysis can be plotted in terms of perceptual maps which display how consumes
perceive the brands, and their differences, on a coordinate system.
Research Methodology
When we talk of Research Methodology, we not only talk of Research Methods but also take
into consideration the logic behind the methods which we use in the context of our research
study and explain why we use or why we are using a particular method or technique. The
information that is to be needed for fulfilling the objective of study was collected from
various primary and secondary sources.
MEANING OF RESEARCH
Research is defined as a scientific and systematic search for pertinent information on a
specific topic. Research is an art of scientific investigation. It is an academic activity. It is a
systematized effort to gain new knowledge.
According to Advanced Learners Dictionary of Current English:
Research is defined as a careful investigation or inquiry especially through search for new
facts in any branch of knowledge.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of
population was selected on the basis of convenience.
Source of data:
There are two types of data: primary data and secondary data. Primary data are collected
with the help of questionnaire and secondary data was taken from industry profile, books,
magazines and internet. The information brochures of certain companies, informal links with
concerned person in this line, articles in newspapers and magazines and journals have also
been consulted as a secondary source of information.
Research plan
The research study is descriptive in nature. The established objectives were kept in mind
during the study, however the hypothesis was formed as the study was made in the form of
descriptive design attempting to analyze the attitude of respondents. This chapter describes
the methodology of the study. This project is based on information collected from primary
sources. After the detailed study, an attempt has been made to present comprehensive analysis
of the industry. The data had been used to cover various aspects like consumption,
consumers preference and customers satisfaction regarding two wheelers. In collecting
requisite data and information regarding the topic selected, I went to the residents of Ambala
city & Ambala cantt and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of
population was selected on the basis of convenience
secondary data may be unsuitable or may be inadequate in the context of the topic under
study.
4. One of the major limitations of the study is that, as the data is collected though the
secondary means, hence it creates uncertainties regarding the methods of the data
collection, time of data collected, and any bias of the compiler during the pervious
research and at the time of data collection.
5. Limitation of time & resources were a major factor influencing the research study.
occupation
Businessmen
Teaching
response
60
10
Defence
Any other
5
25
cars
response
Maruti
Tata
Fiat
Hyundai
Any other
60
10
0
25
5
Interpretation: 60% respondents are having Maruti cars, 25% are having
Hyundai cars, 10% are having TaTa, 5 % are having others brand cars and
nobody is having fiat.
YES
NO
40
60
50
15
10
15
10
0
that friends and relatives prompted them
to purchase car, 15% says past experience, 10% says dealer recommendation,
15% says word of mouth, and 10% says Advertisements .
Price
40
Performance
25
Resale value
10
Maintenance cost
Fuel efficiency
15
Finance scheme
Interpretation: Most of the Respondent 40% says that they consider price
attribute, 25% says performance, 10% says resale value, 5% says maintenance
cost, 15% says that fuel efficiency and 5% says that finance scheme.
Strongly
Price
Agree
65
Agree
35
N. A. nor
Disagree
0
Disagree
Strongly
Disagree
Interpretation: 65% are strongly agreed, 35% are agreed and others gave no
response.
Fuel
Strongly
Agree
N.A nor
Disagree
Strongly
Agree
15
75
Disagree
10
Disagree
0
Efficiency
Interpretation: 75% persons are agreed, 15% are strongly agreed, and 10%
have no response.
Strongly
Resale
Agree
5
Agree
N..A nor
85
Disagree
5
Disagree
Strongly
Disagree
0
Value
Strongly
agree
Maintenance 10
Agree
N.A nor
55
Disagree
35
Disagree
Strongly
Agree
0
Cost
Interpretation: 55% are agree, 35% give no response, and 10% are strongly
agree.
50
DISAGREE STRONGLY
DISAGREE
5
0
DISAGREE
0
Interpretation: 45% are strongly agreed, 50% are agreed, and 5% gave
no response.
Strongly
Finance
Agree
25
Agree
N.A nor
40
Disagree
15
Disagree
Strongly
20
Disagree
0
Scheme
Interpretation: 25% are strongly agreed, 40% are agreed, 15% gave no
response and 20% are strongly disagree.
Maruti
Hyundai
Tata
Fiat
60
25
15
0
MARUTI
Very
Price
High
10
High
65
Satisfactory Low
Very
10
Low
0
15
Fuel
15
55
25
Efficiency
Resale value
Performance
Maintenance
20
20
5
40
55
10
40
25
60
0
0
15
0
0
10
cost
Finance
40
30
30
Very
High
Satisfactory Low
Very
65
30
10
45
0
25
Low
0
0
25
30
55
45
55
35
30
10
10
0
0
0
40
50
Very
High
Satisfactory Low
Very
Scheme
HYUNDAI
Price
Fuel
Efficiency
Resale value
Performance
Maintenance
cost
Finance
High
25
Scheme
TATA
Price
Fuel
High
30
10
40
35
20
45
10
10
Low
0
0
Efficiency
Resale value
Performance
Maintenance
0
0
15
10
35
45
30
55
30
40
10
10
20
0
0
cost
Finance
10
30
40
10
10
Scheme
FIAT
Very
High
Satisfactory Low
Very
Price
Fuel
High
20
5
70
25
10
60
0
10
Low
0
0
Efficiency
Resale value
Performance
Maintenance
0
0
10
0
5
55
25
80
30
65
15
5
10
0
0
cost
Finance
10
30
55
Scheme
5.1 FINDINGS
In the survey , we included people from three areas students, servicemen and
businessmen.The findings of the research shows
Normally, all the three segments maintained their car single handed and the
students and the servicemen serviced their car regularly but the businessmen
were a little hesitent in their servcing of the cars.
Electronic media ( TV) is the most commonly used medium for the brand
awareness. Other medias like magazines, newspaper, hoardings came later.
The most important finding is that brand advertising for maruti is much more
than any other brand and is quickly picking up the interest of the cosumers and
hence coming with a larger market share. May be it could overcede Huyandi in a
couple of days to come.
5.2 Suggestions
Car companies should give more focus on making effective Advertisements.
As people prefer price, performance, less price car should be availed in the market
with effective performance, fuel efficiency etc.
Company should provide effective finance scheme by which their customer group can
be increased.
Fiat should increase brand awareness + promotional activities among people , TATA
should work upon reducing maintenance cost , increase other attributes performance
fuel efficient etc.
Hyundai should work upon increasing performance, fuel efficiency by which its resale
value can be increased.
Maruti should try to maintain its market by continuously providing good attributes,
also should introduce less price cars.
BIBLIOGRAPHY
BOOKS
Schiff man Leon G & Kanuk Lesie Lazar, Consumer Behavior 4 th ed.; PrenticeHall of India pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.
Kotler Philip, Marketing Management ed. 2002; Prentice-Hall of India pvt ltd, M97, Connaught Circus, New Delhi-110001, India.
WEBSITES
http://www.zigwheels.com/fiat-grande-punto
http://www.fiat-india.com/Punto-img-
intro.aspx?
ModelId=6http://www.cars.tatamotors.com/
http://www.bloombergutv.com/industry-news/automobile-industry-india/48324/tatamotors-sells-20--telcon-stake.html
http://www.marutisuzuki.com/showroom.aspx
http://www.maruti.com/
http://www.carfinderservice.com/make/Hundayi
shttp://www.autocarbe.com/search/hundayi+i20u+model+2010
QUESTIONNAIRE
NAME....................
ADDRESS...
CONTACT NO
b) Teaching
(c) Defence
a) Maruti
b) TATA
c) Fiat
d) Hyundai
e) Any other..
3. Have you purchased this car on Finance scheme?
a) Yes
b) No
b) Past experience
c) Dealer Recommendation
d) Word of mouth
e) Advertisements
f) Any other.
b) Performance
c) Resale value
d) Maintenance cost
e) Fuel efficiency
f) Finance scheme
Agree
Strongly
Agree
N. A.
nor
Disagree
Disagree
Strongly
Disagree
Price
Fuel
Efficiency
Resale Value
Performance
Maintenance
Cost
Finance
Scheme
7. What comes in your mind while considering the under mentioned brands: 1. HYUNDAI
Very
High
High
Satisfactory Low
Very
Low
Very
High
High
Satisfactory Low
Very
Low
Price
Fuel
Efficiency
Resale value
Performance
Maintenance
cost
Finance
Scheme
3. MARUTI
Price
Fuel
Efficiency
Resale value
Performance
Maintenance
cost
Finance
Scheme
4. TATA
Very
High
High
Satisfactory Low
Very
Low
Very
High
High
Satisfactory Low
Very
Low
Price
Fuel
Efficiency
Resale value
Performance
Maintenance
cost
Finance
Scheme
5. FIAT
Price
Fuel
Efficiency
Resale value
Performance
Maintenance
cost
Finance
Scheme
8. Considering the following attributes rank the Cars?
(a)Maruti
(b) Hyundai
c) TATA
(d)
NO
Fiat
Reason.
Signature