AFFECT OF BRAND IMAGE ON SALES OF COROLLA

A MINI PROJECT REPORT Submitted to the

SCHOOL OF MANAGEMENT SRM UNIVERSITY

By RANDEEP KUMAR RAKESH RANJAN RAJEEV KUMAR (Reg. NO 35080472), (Reg. NO 35080461), (Reg. NO 35080446).

UNDER THE GUIDANCE OF MRS. CHITRA

FACULTY SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY

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ACKNOWLEDGEMENT

I render my unfathomable gratitude and special institute to Mrs CHITRA, Sr. Lecturer, in School of Management, for his valuable guidance, remedial encouragement, timely suggestions and his deference shown during the preparation of this dissertation. I have great pleasure in acknowledging my in depthless and gratitude to Dr. JAYSHREE SURESH Head of the Department of Business Administration for his valuable suggestion and advice throughout the course of study.

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TABLE OF CONTENTS
1.Executive Summary------------------------- 4 2.Introduction----------------------------------- 5 3.Methodology---------------------------------- 9 4.Results------------------------------------------ 11 5.Discussion------------------------------------- 19 6.Acknowledgements-------------------------- 20 7.References------------------------------------- 21 8.Table of contents 2-------------------------- 22 9.Appendix-------------------------------------- 23

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EXECUTIVE SUMMARY
The topic of our research is, relationship between brand image and sales of Toyota Corolla cars. We have conducted this research to find the relation between the independent variable (brand image) with the sales of Toyota Corolla cars. We have proved the null hypothesis wrong. As the research show a positive relation between the independent variable and dependent variable. The sample size used is 100 choosing 40 respondents from one stratum and 60 respondent from another stratum. The respondents of study were selected randomly from two strata (Defence, Illama Iqbal Town) selected from the city of Lahore.To control the intervening variables randomization was used. By using two tailed t testing and taking 95% confidence interval it is clear that brand image has affect on the sales of Toyota Corolla cars and it enables us to reject our null

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hypothesis that was there is no relationship between the brand image and sales of Toyota Corolla cars. This information can be useful for the Toyota Indus Motor company to improve their brand image by giving more and more valve to Corolla cars. At the same time they can improve other variables( price, spare parts, quality, and resale value) to generate more and more sales and to beat thrie competitors with the help of high brand image.

INTRODUCTION
Problem
This research was conducted to find out the

relationship between brand image and the sales of Toyota Corolla cars. We have used the field study method for our research. This method was most suited to our area of study because relevant information could be gathered in the actual environment. Various researches have been conducted in the past that concluded that brand image has an affect on the sales
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of cars. So, we are going to find out that is Toyota Corolla has brand image and if it has then what will be the affect on sales.

Background
Creating a powerful corporate brand image, a market discipline for the 21st century (Steven Howard). If the people in the market sector didnt necessarily warned the image, no matter how good a product it was attracted to (BBC News). Kia works to bolster its brand image (Automotive News, 2001). Creating a brand communication means building and consummating the trust with your customer. The customer

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rewards this trust by repurchasing and advocacy of your brand (Sachin Mehta). This is not only applying on the car companies that brand image affect the sales. It even applies on the all kind of companies. The purpose of this research is to convey the customers point of view to the car manufacturing

companies. So that after getting all information, managers could change the strategies and polices to increase the sales. We hope that car manufacturing companies will benefit from our research. Rationale We have studied the relation between brand image and the sales of Toyota Corolla cars. We conducted the research to find out relationship between brand image and sales of corolla cars.

THEORETICAL FRAMEWORK Independent Variables: Brand Image Dependent Variable: Sales of Toyota Corolla cars

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Intervening

Variables:

Spare

Parts,

Resale

Value,

Advertising, Price, Income Level, and Leasing

Independent Variable Variable

Brand Image Sales of Toyota

Dependent

Media, Spare Parts, Price, Income Level

Intervening Variables We expect that brand image has affect on sales of corolla cars. Because the past researches proved it that the brand image has the affect on the sales of the cars. We made sure that we went to the area of study at the most appropriate timing so that to interact with the respondents personally while getting the responses of questions asked. Questions will be asked under friendly conversation. Here is the hypothesis of study.

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Null Hypothesis There is no relationship between the brand image and the sales of Toyota Corolla car. Alternative Hypothesis There is a relationship between the brand image and the sales of Toyota Corolla cars.

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METHODOLOGY
Subject
People belonging to the different classes (Upper, Middle) were the subjects of the study. However the sample size of our research was 100. The sample size is determined by the practical method. Selection of the subjects from sample was determined by Stratified random sampling in Lahore. We randomly chose 6 naturally occurring strata. We had chosen the two from strata one randomly. stratum Then select and 40 60

respondents

(Defense)

respondents from another (I llama Irbil Town).

The two strata identified are:

1. Defense - Residents 2. I llama Iqbal Town Residents

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Apparatus
We have used the questionnaire to gather the data. The questionnaire was carefully designed under the inspection of course instructor. The questionnaire contained eight

questions as can be seen in the Appendix. All the questions were close-ended questions to save the time of respondents. The questions asked related to brand image and sales of corolla cars. The aim is to find out the affect of brand image on the sales. Questionnaire were personally distributed and collected. The procedure gives a detail how the results were interpreted.

Procedure
For our research the sample size was 100 and we randomly chose 2 stratas and chose 40 respondents from one stratum (Defense) and 60 respondents from another stratum (I llama
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Iqbal) randomly. We randomly choose 40 from Defence because geographically Defence is smaller than IllamaIqbal town. ed. Further a friendly conversation explaining the reason of study was done wherever the questionnaire was personally administered. The questionnaire greeting assured that respondents information would not be shown to anyone and ended with a greeting and thank you note.

RESULTS
Table 1

DO YOU OWN A CAR?

YES NO TOTAL

Frequency 87 13 100

Percent 87.0 13.0 100.0

Table 1 shows that 87% people own a car and 13% people do not own a car.

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Table 2

WHICH CAR COMPANY HAS HIGH BRAND IMAGE?

Frequency Toyota Suzuki Honda Total 65 12 23 100

Percent 65.0 12.0 23.0 100.0

Table 2 shows that 65%people say that Toyota company has high brand image and 12% people says that Suzuki has high brand image and 23% people says that Honda has high brand image. Mostly people say that Toyota has high brand image.

Table 3

WHY YOU PREFER THE BRAND

Frequency Price Quality Resale Performa nce Price and quality Price and resale Price and performa nce Quality
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7 15 9 9 5 23 3 20

7.0 15.0 9.0 9.0 5.0 23.0 3.0 20.0 13

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and resale Quality and performa nce Resale and performa nce Total

7.0

2.0

100

100.0

Table 3 shows that7% people prefer price to buy a brand and 15% people prefer quality to buy a brand and 9% people prefer resale value to buy a brand and 9% people prefer performance to buy a brand and 5% people prefer price and quality, 23% prefer price and resale, 3% people prefer price and performance, 20% people prefer quality and resale value, 7% people prefer quality and performance, 2% people prefer resale value and performance to buy a brand. It shows that price, quality and resale value are affect the sales of a brand.
Table 4

DO YOUR FRIENDS INSIST YOU TO BUY A TOYOTA COROLLA CAR?

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Brand Image Frequency Yes No Total 64 36 100 Percent 64.0 36.0 100.0

This table 4 shows that 64% people buy a Toyota Corolla because of the word of mouth and 36% people have their own opinion to buy a Toyota Corolla car. This table shows that mostly people buy a Toyota Corolla because of the word of mouth which means that brand image affect the sales of the Toyota Corolla Car.

Table5

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DO YOU THINK THAT SPARE PARTS OF TOYOTA ARE EASILY AVAILABLE IN THE MARKEK?
Frequency Strongly Agree Agree Neutral Total 57 40 3 100 Percent 57.0 40.0 3.0 100.0

Table 5 shows that 57% people are strongly agreed that spare part of the Toyota Corolla are easily available in the market and 40% people agree that spare parts are easily available in the market and 3% people are neither agree nor disagree of this statement.
Table6

DO YOU THINK THAT TOYOTA COROLLA HAS HIGH BRAND IMAGE?

Frequency Yes No Total 99 1 100 Percent 99.0 1.0 100.0

Table 6 shows that 99%people says that Toyota Corolla has high brand image and 1% people says that Toyota Corolla do

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not have high brand image. So mostly people agreed that Toyota Corolla has a high brand image.
Table7

IS BRAND IMAGE HAS AN AFFECT ON YOUR BUYING DECISION

Frequency Yes No Total 82 18 100 Percent 82.0 18.0 100.0

Table 7 shows that 82% people say that brand image affect the sales of Toyota Corolla cars and 18% people says that it is not right. . It is the main question on which our research is revolving around.

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Table8

WHAT IS YOUR AVERAGE INCOME PER MONTH (RS)?

Frequency Less then 10,000 10,001 to 20,000 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001to 60,000 60,001 to 70,000 70,001 to 80,000 80,001 to 90,000 90,001 to 100,000 Total 1 6 15 22 12 17 11 7 6 3 100 1.0 6.0 15.0 22.0 12.0 17.0 11.0 7.0 6.0 3.0 100.0

Percent 1.0 6.0 15.0 22.0 12.0 17.0 11.0 7.0 6.0 3.0 100.0

Table 8 shows that 1% people have their income less than 10,000 and 6% people have income between 20,001 to

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30,000,16% people have between 20,001 to 30,000, 22% people have income between 30,001 to 40,000, 12% people have income between 40,001 to 50,000, 17% people have income between 50,001to 60,000, 11% people have income between 60,001 to 70,000, 7% people have income between 70,001 to 80,000, 6% people have income between 80,001 to 90,000, and 3% people have income between 90,001 to 100,000.

STATISTICS

df

Sig. (2Mean tailed) Difference

95% Confidence Interval of the Difference Lower Upper .1971 .7473

Do you own a car Which car company has high brand image

3.846 6.880

99 99

.000 .000

.1300 .5800

6.293E-02 .4127

Why do you prefer 16.516 the brand Do your friends insist you to purchase a Toyota corolla car Do you think that spare parts of corolla easily available in the market 7.462

99

.000

4.2700

3.7570

4.7830

99

.000

.3600

.2643

.4557

8.242

99

.000

.4600

.3493

.5707

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Do you think that corolla has a high brand image Is brand image has an affect on your buying decision What is your average income per month (Rs)

1.000

99

.320

1.000E-02 -9.8422E03

2.984E-02

4.662

99

.000

.1800

.1034

.2566

20.142

99

.000

4.2500

3.8313

4.6687

This table shows the results of one sample t test. This table provides evidence that Toyota corolla has high brand image (t 1.000) and has an affect on the sales of Toyota corolla cars. Level of significant is (.320). We used SPSS software to find results related to statistics.

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PERFORMANCE Car companies should concentrate more on these in order to increase the sales.

Do you own a car?

No 13.0%

Yes 87.0%

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Which car company has high brand image?

Honda 23.0%

Suzki 12.0% Toyota 65.0%

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why do you prefer the brand?

Resale and Performan 2.0% Quality and Performa 7.0% Quality and Resale 20.0% resale Price and Performanc 3.0% Price and Resale 23.0% 9.0% Performance 9.0% Price and Quality 5.0% Price 7.0% Quality 15.0%

Do your friends insist you to purchase a toyota corolla car?

No 36.0%

Yes 64.0%

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Do you think that corolla has a high brand image?

No 1.0%

Yes 99.0%

Do you think that spare parts of corolla easily available in the market
Neutral 3.0% Agree 40.0%

Strongly Agree 57.0%

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Is brand imge has an affect on your buying decision?

No 18.0%

Yes 82.0%

What is your average income per month(Rs)?

90,001 to 100,000 3.0% 80,001 to 90,000 6.0% 70,001 to 80,000 7.0% 60,001 to 70,000 11.0% Less then 10,000 1.0% 10,001 to 20,000 6.0% 20,001 to 30,000 15.0%

50,001to 60,000 17.0%

30,001 to 40,000 22.0% 40,001 to 50,000 12.0%

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CONCLUSION

The aim of our research is to find out weather brand image has an affect on the sales of Toyota Corolla cars. We have proved the null hypothesis is rejected and the alternative hypothesis has been accepted. There is a relationship between brand image and the sales of Toyota Corolla. This has been proved in the literature review before and we have got the same results to prove it. From our research we have concluded that there are some other variables that may affect the sales of the Toyota Corolla e.g. Quality Resale Value Spare Parts

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REFERENCES
Philip Kotler, Marketing Management. Gleen.M,Chasing Google Wikipediya

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QUESTIONNAIRE Dear Participants,

This questionnaire is designed to check the affect of brand

image on the sales of Toyota corolla cars. The information you provide will help us. Because you are the one who can give us correct information of how you experience brand image. We request you to respond to the questions frankly and honestly. Name:Sex:1.) Do you own a car? YES NO Age;Profession:-

2.) According to your view which car company has high brand image. Toyota Nissan 3.) Why do you prefer the brand? Suzuki Honda

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Price Performance

Quality

Resale Value

4.) Do your friends insist you to purchase a Toyota Corolla car?

YES NO

5.) Do you think that spare parts of Toyota Corolla cars are easily available
Strongly Agree

in the market?
Agree Neutral Disagree Strongly Disagree

6.) Do you think that Toyota Corolla has a high brand image?

YES NO 7.) Is brand image has an affect on your buying decision? YES 8.) What is your average income per month (In Rs.)? Less than 10,000 20,000 20,001 to 30,000 40,000 30,001 to 10,001 to NO

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40,001 to 50,000 60,000 60,001 to 70,000 80,000 80,001 to 900,000 100,000

Above

50,001 to

70,001 to

90,001 to

Thank you very much for your time and cooperation. We

greatly appreciate your help in conducting this research.

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