SUMMER INTERSHIP REPORT

On

“TO STUDY THE MARKET RESEARCH & SALES PROMOTIONAL

ACTIVITIES OF RAHUL HYUNDAI”

Submitted by

SOHAN M R

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION in

BUSINESS ANALYTICS
IN

APEX INSTITUTE OF MANAGEMENT

Chandigarh University

SEPTEMBER 2023
“TO STUDY THE MARKET RESEARCH & SALES PROMOTIONAL
ACTIVITIES OF RAHUL HYUNDAI”

A PROJECT REPORT

Submitted by

SOHAN M R

22MBA20021

in partial fulfilment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

IN

BUSINESS ANALYTICS (IBM)

SEPTEMBER 2023

2
 BONAFIDE CERTIFICATE
Certified that this project report “TO STUDY THE MARKET RESEARCH
& SALES PROMOTIONAL ACTIVITIES OF RAHUL HYUNDAI”
is the bonafide work of “ SOHAN M R’’ who carried out the project work
under our supervision.

SIGNATURE SIGNATURE

Mr. GAGAN VIBHU Dr. ANAND SHARMA

HEAD OF THE DEPARTMENT SUPERVISOR

AIT MANAGEMENT ASSOCIATE PROFFESOR

AIT MANAGEMENT

Submitted for the project viva-voice examination held on 23-09-2023

INTERNAL EXAMINER EXTERNAL EXAMINER

3
 SUMMER INTERSHIP REPORT
On
“TO STUDY THE MARKET RESEARCH & SALES PROMOTIONAL
ACTIVITIES OF RAHUL HYUNDAI”
Submitted to the CHANDIGARH University in partial fulfillment of the
requirements for the award of the Degree of “MASTER OF BUSINESS
ADMINISTRATION”

Submitted by
SOHAN M R
(Enrollment No: 22MBA20021)

Under the Guidance of:

Dr. ANAND SHARMA

(Batch: 2022-24)

APEX INSTITUTE OF MANAGEMENT

CHANDIGARH UNIVERSITY, GHARUAN.

4
COMPANY CERTIFICATE

5
CANDIDATE’S DECLARATION

I, SOHAN M R hereby declare that the Summer Training Report, entitled “To study the
Market Research Sales Promotional Activities of RAHUL Hyundai’”, submitted to the
CHANDIGARH University, CHANDIGARH in partial fulfillment of the requirements for
the award of the Degree of the Master of Business Administration is a record of original
training undergone by me under the supervision and guidance of Dr. ANAND SHARMA
Apex Institute of Management, Chandigarh University, and it has not formed the basis for
the award of any Degree/Fellowship or other similar title to any candidate of any
University/Institution.

DATE: Signature of the Student

This is to certify that the statement made by the candidate is true to the best of my knowledge
and belief.

Date:

Countersigned

(ii)

6
Contents
EXECUTIVE SUMMARY ..................................................................................................... 11

CHAPTER 1: INTRODUCTION TO THE TOPIC ................................................................ 12

1.1 SALES PROMOTION .............................................................................................. 12

1.2 TYPES OF SALES PROMOTIONS: ............................................................................ 13

Consumer Sales Promotion: ............................................................................................. 13

Trade Sales Promotion: .................................................................................................... 14

1.3. CONSUMER SALES PROMOTION TECHNIQUE: ................................................. 15

1.4. TRADE SALES PROMOTION TECHNIQUES: ........................................................ 16

1.5. OBJECTIVES OF SALES PROMOTION ACTIVITIES: ........................................... 16

1.6. IMPORTANCE OF SALES PROMOTION ................................................................ 18

1.7. CONSUMER THOUGHT PROCESS.......................................................................... 19

1.8. PRMOTIONAL MIX.................................................................................................... 19

1.9. STRATEGIES OF PROMOTION:............................................................................... 20

CHAPTER 2: COMPANY’S PROFILE ................................................................................. 22

2.1 INTRODUCTION TO HYUNDAI ............................................................................... 22

2.2 HISTORY ...................................................................................................................... 23

2.3 HYUNDAI MOTOR IN INDIA .................................................................................... 24

2.3.1 MANUFACTURING FACILITIES ........................................................................... 25

2.3.2. CURRENT MODELS ............................................................................................... 26

2.3.3. SALES AND SERVICE NETWORK ....................................................................... 27

2.3.4. EXPORTS .................................................................................................................. 28

2.3.5. SALES PERFORMACE............................................................................................ 28

2.3.6. AWARDS AND ACHIEVEMENTS ........................................................................ 29

2.4. RAHUL HYUNDAI, SHIVAMOGGA ........................................................................ 30

2.5 MARKETING DEPARTMENT OF RAHUL HYUNDAI: .......................................... 33

2.6. COMPETITORS OF HYUNDAI IN INDIA ............................................................... 33

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 2.6.1 MARUTI SUZUKI: ................................................................................................ 33

2.6.2 HONDA: ................................................................................................................. 33

2.6.3 TATA: ......................................................................................................................... 34

2.6.4 TOYOTA ................................................................................................................ 34

2.6.5 NISSAN .................................................................................................................. 34

2.7. MARKET SHARE OF HYUNDAI AND ITS COMPETITORS IN 2018-2019 ......... 34

2.8. MARKET STRATEGY IMPLEMENTATION ........................................................... 36

2.9. SWOT ANALYSIS BY HYUNDAI ............................................................................ 37

2.9.1 Strength: .................................................................................................................. 37

2.9.2 WEAKNESS:.......................................................................................................... 37

2.9.3 OPPORTUNITIES:................................................................................................. 37

2.9.4 THREATS............................................................................................................... 37

2.10 SWOT ANALYSIS CONDUCTED ............................................................................ 38

2.10.1 Strengths: .............................................................................................................. 38

2.10.2 Weaknesses: .......................................................................................................... 38

2.11 STP of Hyundai............................................................................................................ 39

2.11.1 Segmentation: ....................................................................................................... 39

2.11.2 Targeting: .............................................................................................................. 39

2.11.3 Positioning: ........................................................................................................... 40

2.11.4 STP Analysis Interpretation .................................................................................. 40

CHAPTER 3 RESEARCH OBJECTIVES AND METHODOLOGY .................................... 41

3.1.OBJECTIVE OF STUDY .............................................................................................. 41

3.2 NEED FOR THE STUDY ............................................................................................. 41

3.3 RESEARCH METHODOLOGY: ................................................................................. 41

3.3.1 Overview of Research Methodology: ..................................................................... 42

3.3.3 RESEARCH DESIGN: ........................................................................................... 42

3.4 SAMPLING TECHNIQUE: .......................................................................................... 43

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 3.5.1 Primary Data: .......................................................................................................... 43

3.5.2 Secondary Data: ...................................................................................................... 43

3.6 SAMPLING DESIGN: .................................................................................................. 43

3.7 SAMPLE POPULATION:............................................................................................. 43

3.8 SAMPLE SIZE .............................................................................................................. 43

3.9 ANALYTICAL TOOLS USED .................................................................................... 44

3.10 LIMITATION OF THE STUDY ................................................................................. 44

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION .............................................. 45

4.1 Questionnaire Design ..................................................................................................... 45

CHAPTER 5: FINDINGS, RECOMMENDATION AND CONCLUSION ........................... 55

5.1 FINDINGS: .................................................................................................................... 55

5.2. Suggestions: .................................................................................................................. 56

5.3. CONCLUSION:............................................................................................................ 56

ANNEXURE............................................................................................................................ 57

BIBLIOGRAPHY .................................................................................................................... 60

9
 ACKNOWLEDGEMENT

Any fruitful work is incomplete without a word of thanks to those involved directly or
indirectly in its completion. It is indeed a great pleasure to express my thanks & gratitude to
all those people who helped me during my internship project report. This project would not
have been materialized without the help from my quarters.

I am thankful to Mr Kiran N, Branch Manager Rahul Hyundai Shivamogga for his gratitude
during my project and giving me full co-operation and valuable information and guidance,
without which it would not be possible for me to complete this project.

I would also like to thank Mr. Raju, Sales Team leader and Mr. Jayaram, Sales Team leader
for taking time out of their hectic schedule.

I would also like to extend special thanks to the entire staff of Rahul Hyundai for their
cooperation, guidance, and support during my internship.

I express a deep sense of gratitude to respected faculty members and my classmates for their
valuable contribution and suggestions. Their guidance suggestion & expertise have been a
source of inspiration & were very helpful to me during our project work.

10
 EXECUTIVE SUMMARY

Automobiles have become an indispensable part of our lives, an extension of the human body
that provides us faster, cheaper, and more convenient mobility every passing day. Behind this
betterment go the efforts of those in the industry, in the form of improvement through
technology. The Indian automotive component industry is dominated by around 500 players
which account for more than 85% of the production.

I have been assigned a task as a project related to Sales promotional activities at RAHUL
HYUNDAI. This project report throws light on the reasons why promotional activities of
RAHUL HYUNDAI is more beneficial for them to promote the products.
For completion of this report, a survey was conducted and for fulfillment of questionnaire, a
sample size 100 was selected. Among those who were interviewed consist of existing
customers of Rahul Hyundai. Through the sample size taken was small but it was varied to
overcome all the odds. A structured questionnaire was constructed to measure the responses of
the responses of the respondents on suitable scale so that it could be analyzed. Primary data
collection was done via questionnaires and secondary data collection through company
website. Through survey, effect of various Sales promotions activities, Discounts, Offers and
the reason of consumers choosing the RAHUL HYUNDAI over other players in the market.
 CHAPTER 1: INTRODUCTION TO THE TOPIC

1.1 SALES PROMOTION

Sales promotion is one of the elements of the promotional mix. The primary elements in the
promotional mix are advertising, personal selling, direct marketing and publicity/public
relation. Sales Promotion uses both media and non-media marketing communications for a pre-
determined, limited to increase consumer demand, stimulate market demand or improve
product availability. Examples include contests, coupons, freebies, loss leaders point of
purchase of displays, premium, prizes samples and rebates.

Sales promotion directly at the customer, sales staff, or distribution channel members such as
retailers. Sales promotion includes several communication activities that attempt to provide
added value or incentives to customers, wholesalers, retailers or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial or
purchase.

Sales promotion is implemented to attract new customers, to hold present customers, to

counteract competition, and to take advantage of opportunities that are revealed by market
research. It is made up of activities, both outside and inside activities, to enhance company
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sales. Outside sales promotion activities include advertising, public relation activities and
special sales events. Inside sales promotion activities include window displays, product and
promotional material display and promotional programs such as premium awards and contests.

When a brand wants to increase the sales of its products, it uses sales promotion. The brand
can increase sales by attracting new customers to their products or by retaining the old
customers by various means. The company can also motivate the dealers and distributors of
their channel to perform better for their brand, and to get their stock moving.

Some Sales Promotion is aimed at customers. Other are targeted at intermediaries and at
the firm’s sales force. When undertaking a sales promotion, there are several factors that
a business must take into account:

• What does the promotions Cost-will the resulting sales boost justify the investment?
• Is the sales promotion consistent with the brand image? A promotion that heavily
discounts a product with a premium price might do some long term damage to a brand.

• With the sales promotion attract customers who will continue to buy the product once
the promotion ends or will it simply attract those customers who are always on the
lookout for a bargain?

1.2 TYPES OF SALES PROMOTIONS:

Consumer Sales Promotion:
Any sales promotion activity that a company does keeping the end consumer in mind is known
as consumer sales promotion. Example- If an e-commerce website gives 10% discount on its
products, then it wants the consumers to make the best of this deal. This is a consumer-focused
promotional activity and hence can be called consumer sales promotions. The objective of
consumer’s sales promotions might be various. A consumer might be asked to test a sample of
a completely new perfume in the market and rate it. At the end, the result should be an action
from the consumer. The consumer should purchase the product so that further awareness is
created for the brand.

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Trade Sales Promotion:
If the promotional activities are focused on dealers, distributors, or agents, then it is known as
trade promotions. There is a lot of completion in any field. And in channel sales, to get the
products moving to motivate the dealer to perform better, trade discounts are given. For
Example: You are a dealer for Televisions. Now Sony has come and told you will be given a
5% discount if you cross sales of 100 television. Naturally, you will be very motivated because
the 5% in television sales is huge. Plus selling SONY TV’s is easy because it is already a brand.
Thus, you divert all potential customers to Sony Television so that you can achieve the target.
Similarly, there are other types of trade sales promotions which can be used to motivate the
dealer and distributor. As the noise of Competitors rises, you will find more and more
companies using sales promotions techniques.
The advantage of sales promotion is that they are not too expensive for the company when
compared with ATL advertising mediums like Television or newspaper. Hence, even small
businesses use it quite effectively.

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1.3. CONSUMER SALES PROMOTION TECHNIQUE:
Consumer sales promotion are short term techniques designed to achieve short term objectives,
such as to stimulate a purchase, encourage store traffic or simply build excitement for a product
or brand. Trade Sales Promotion technique includes:
➢ Price Deals: A temporary reduction in the price, such as 50% off.
➢ Loyal Reward Program: Consumers collect points, miles, or credits for purchases and
redeem them for rewards.
➢ Cents Off Deals: Offers a brand at a lower price. Price reduction may be a percentage
marked on the package
➢ Price Pack/Bonus Pack: The packaging offers a consumer a certain percentage more
of the product for the same price (for example, 25 percent extra). This is another type
of deal “in which customers are offered more of the product for the same price”. For
example, a sales company may offer their consumers a bonus pack in which they can
receive two products for the price of one. In these scenarios, this bonus pack is framed
as a gain because buyers believe that they are obtaining a free product.
➢ Coupons: Quite commonly used to motivate people to purchase when they think the
price is high or it can be incentive to buy your product above the competitors.
Domino’s, Pizza hut and McDonalds very prominently use coupons in their marketing.
If you have their coupon in hand, you get a discount of X amount on the purchase.
➢ Loss Leader: The price of a popular product is temporarily reduced below cost in order
to stimulate other profitable sales.
➢ Free Standing Insert: A coupon booklet is inserted into the local newspaper for
delivery.
➢ Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
➢ Mobile couponing: Coupons are available on a mobile phone. Consumers show the
offer on a mobile phone to a salesperson for redemption.
➢ Rebates: Refunds are a marketing tactic when you get a partial amount refunded to you
based on an action you have taken. For example – if you bring the parking ticket to the
showroom, your parking amount will be refunded by the store. Such refunds make the
customer excited to visit a store.
➢ Exchange Offers: Exchange offers are quite commonly used all across the world and
used strongly in festive season when sales will be more and people are in a purchasing

15
 mood. In exchange offer, you can exchange an old product for a new product. You will
receive a discount based on the valuation of your old product.
➢ Sampling: Sampling is an excellent way to introduce your product in the market and
at the same time to increase the awareness of the product.
➢ Financing: Sampling is an excellent way to introduce your product in the market and
at the same time to increase the awareness of the product.

1.4. TRADE SALES PROMOTION TECHNIQUES:

When the promotional activities are focused on the dealers, distributors or agents, then it is
known as trade promotions. The trade sales promotion techniques include the following:
➢ Trade Allowances: Short-term incentive offered to induce a retailer to stock up on a
product.
➢ Dealer Loader: An incentive given to induce a retailer to purchase and display a
product.
➢ Trade Contest: A contest to reward retailers that sell the most products.
➢ Point-of-Purchase Displays: Used to create the urge of "impulse" buying and selling
your product on the spot.
➢ Training Programs: Dealer Employees are trained in the selling product.
➢ Push Money: It is also known as “Spiffs”. An extra commission paid to retailer
employees to push products.
➢ Trade Discount: These are the payments to distribution channel members for
performing some function.5

1.5. OBJECTIVES OF SALES PROMOTION ACTIVITIES:

The basic purpose of sales promotion is to increase the sales of a product by creating demand.
Sales promotion has a capability to complement and supplement the advertising functions of
the marketing. It helps marketers to realize a variety of objectives. The following are the main
objective of Sales Promotion:

1) To introduce new products or services: Sales promotion is often used to motivate

consumers to try a new product. Dealers are also induced to buy new products for resale.
Usually, free samples are given to introduce new products to customers. Discounts in cash
or goods may also be offered to dealers to stock a new product.

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2) To Attract New Customers: Sales promotion measures also play an important role in
attracting new customers for an organization. Usually, new customers are those persons
that
are won away from other firms. Samples, gifts, prizes, etc. are used to encourage
consumers to try a new brand or shift their patronage to new dealers.
3) To induce existing customers to buy more: Sales promotion devices are most often used
to induce the existing customers of a firm to buy more. Product development, offering
three products at the cost of two, discount coupons, are some of the sales promotion
devices used by firms to motivate the existing buyers to buy more of a specific product.
4) Helps the firm to remain competitive: Most of the companies undertake sales promotion
activities in order to remain in the competitive market. Therefore, in the modern
competitive world no firm can escape the responsibility of undertaking sales promotion
activities.
5) To increase sales in Off season: Many products like air-coolers, fans, refrigerators, air-
conditioners, cold drinks, room heaters, etc. have seasonal demand. Manufacturers and
dealers dealing with such types of goods make every effort to maintain a stable demand
throughout the year. That is why we find discount, off-season price reduction of such items
in the market.
6) To add to the stock of the dealers: Dealers like wholesalers and retailers usually deal
with a variety of goods. Their selling activity becomes easier when the manufacturer
supplements their efforts by sales promotion measures. When a product or service is well
supported by sales promotion, dealers are automatically induced to have more of such
items.
7) To increase Loyalty: Loyalty to a product or service is much more subjective and
personal in nature than repeat purchase. Loyalty keeps the product moving even when the
company is facing problems in terms of price, distribution etc.
8) Brand Building: Building brand value is one of the main objective of sales promotion. A
sales promotion may be done to attract attention towards a new product/brand or some
services that has been launched by the retailer and to induce trail purchase. It has been
practiced by some retail companies like Pantaloon reward good or “privileged” customers
with exclusive promotions schemes, such as email “exceptional deals” and price cut while
cash payment.

17
9) To Facilitate Coordination: Sales promotion can be easily used to facilitate coordination
and proper link between advertising and personal selling.
10) To introduce present customers to buy more: Present customers may be induced to buy
more by knowing more about a product, its features, and use.

1.6. IMPORTANCE OF SALES PROMOTION

The importance of sales promotion has increased tremendously. It helps to remove the
consumer’s dissatisfaction about a particular devices are the only promotional activities at the
point of purchases. Some of the followings are the importance of sales promotion are:

1. Creates Differentiation: When a company launches a new product or asks customers to

engage with its business in a new way, this sets the company apart from the competition.
Promotion planning compels us to identify something new or different that offers value to
the company’s customers.
2. Creates new content and communication opportunities: One of the easiest ways to
create new content for the customers is to create news by using sales promotion.
3. Creates upsell and cross sell opportunities: When company package or bundle products
around a theme or solution, then company can often generate sales of multiple items rather
than a single item.
4. Drives customer decision making: Limited availability offers can create a sense of
scarcity in customers that get them to act. If a company can add sampling of promotional
item to the mix, then it can create compelling reasons to buy.
5. Creates word-of-mouth opportunities: Promotions can often get regular customers a new
reason to be surprised and delighted by the business which gets them to talk about
company’s product to their friends.
6. Creates training opportunities for staff: Promotions give a chance to train, prepare and
re-engage the sales staff in what’s new in the business.
7. Creates testing opportunities: Promotion gives a limited time window to test new ideas
and new products and to measure them. This will help to figure out whether they warrant
additional investment of time and money to make them permanent products or services.
8. Grows revenue: Sales promotions are a great way to build year-over-year and month-over-
month revenue growth.

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1.7. CONSUMER THOUGHT PROCESS
1) Meaningful Savings: Gain or Loss: Many discounts are designed to give consumers the
perception of saving money when buying products, but not all discounted prices are viewed
as favorable to buyers. Therefore, before making a purchase, consumers may weigh their
options as either a gain or a loss to avoid the risk of losing money on a purchase. A “gain”
view on a purchase results in chance taking.
2) Impulse Buying: Impulse buying results from consumers’ failure to weigh their options
before buying a product. Impulse buying is “any purchase that a shopper makes that has
not been planned, sudden and immediate.
3) Comparing Prices: Many consumers read left-to-right, and therefore, compare prices in
the same manner.
4) Right Digit Effect: The right digit effect focuses on the right digits of prices when the left
digits are the same.
5) Framing Effect: The Framing Effect is “the phenomenon that occurs when there is a
change in an individual’s preference between two or more alternatives caused by the way
the problem is presented”. In other words, the format in which something is presented will
affect a person's viewpoint. This theory consists of three subcategories: risky choice
framing, attribute framing and goal framing.

1.8. PRMOTIONAL MIX

There are four main aspects of Promotional Mix. These are:

1) ADVERTISING: Any paid presentation and promotion of ideas, goods, or services by an

identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures
and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and
emails.
2) PERSONAL SELLING: A process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral presentation.
Examples: Sales presentations, sales meetings, sales training and incentive programs for
intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.
3) PROMOTIONS: Incentives designed to stimulate the purchase or sale of a product,
usually in the short term. Examples: Coupons, sweepstakes, contests, product samples,
rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

19
4) PUBLIC RELATIONS: Paid intimate stimulation of supply for a product, service, or
business unit by planting significant news about it or a favorable presentation of it in the
media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations,
charitable contributions, speeches, issue advertising, and seminars. Direct Marketing is
often listed as a fifth part of the marketing mix Sponsorship is sometimes added as a sixth
aspect.

1.9. STRATEGIES OF PROMOTION:

Figure 0.1: Strategies of Promotion

1) PUSH STRATEGY: A push strategy involves convincing trade intermediary channel
members to “push” the product through the distribution channels to the ultimate consumer
via promotion efforts. The company promotes the product through a reseller who in turn
promotes if to yet another reseller or the final consumer.
• The brand clutter or brand identity is weak
• Product differentiation is not available.
• The budget for promotion is low
• Brand loyalty low.
• Marketing channels are short and direct
• Access to advertising media is not possible.
2) PULL STRATEGY: A strategy attempts to get consumers to “pull” the product from the
manufacturer through the marketing channel. The company focuses its marketing
communications efforts on consumers in the hope that it stimulates interest and demand for
the product at the end-user level.
• Brand identity is strong.
20
• Brand loyalty is high.
• Promotion budgets are high
• Category of the product is high involvement product.
• There is perceived product differentiation

21
 CHAPTER 2: COMPANY’S PROFILE

2.1 INTRODUCTION TO HYUNDAI

The Hyundai Motor Company, commonly known as Hyundai Motors, is a South Korean
Multinational Automotive manufacturer, headquartered in Seoul. The company was founded
in 1967 by Chung Ju-Yung and, along with its 32.8% owned subsidiary, Kia Motors, and its
100% owned luxury subsidiary Genesis Motor, altogether comprise the Group. It is the third
largest vehicle manufacturer in the world. Hyundai operates the world's largest integrated
automobile manufacturing facility in Ulsan, South Korea which has an annual production
capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai
vehicles are sold in 193 countries through some 5,000 dealerships and showrooms.

Type Public

Industry Automotive

Founded 29 Decemeber, 1967 (51 years ago)

Founder Chung Ju-Yung

Headquarter Seoul, South Korea

Key People Chung Mong-koo (Chairman) and Lee Won-

hee (President and CEO)

Area Served World Wide (Except North Korea)

Products Automobiles, Luxury Cars, Commercial

vehicles Engine
 Revenue ………………………….

Website www.hyundai.com

2.2 HISTORY
Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947.
Hyundai Motor Company was later established in 1967. The company's first model,
the Cortina, was released in cooperation with Ford Motor Company in 1968. When Hyundai
wanted to develop their own car, they hired George Turnbull in February 1974, the former
Managing Director of Austin Morris at British Leyland. He in turn hired five other top British
car engineers. They were Kenneth Barnett body design, engineers John Simpson and Edward
Chapman, John Crosthwaite ex-BRM as chassis engineer and Peter Slater as chief
development engineer. In 1975, the Pony, the first South Korean car, was released, with styling
by Giorgio Giugiaro of Ital Design and powertrain technology provided by Japan's Mitsubishi
Motors. Exports began in the following year to Ecuador and soon thereafter to the Benelux
countries. Hyundai entered the British market in 1982, selling 2993 cars in their first year there.

In 1984, Hyundai began exporting the Pony to Canada, but not to the United States, as the Pony
would not pass emissions standards there. Canadian sales greatly exceeded expectations, and
it was at one point the top-selling car on the Canadian market. In 1985, the one millionth
Hyundai car was built. In 1986, Hyundai began to sell cars in the United States, and
the Excel was nominated as "Best Product #10" by Fortune magazine, largely because of its
affordability. The company began to produce models with its own technology in 1988,
beginning with the midsize Sonata. In the spring of 1990, aggregate production of Hyundai
automobiles reached the four million mark. In 1991, the company succeeded in developing its
first proprietary gasoline engine, the four-cylinder Alpha, and also its own transmission, thus
paving the way for technological independence.

In 1996, Hyundai Motor India Limited was established with a production plant in
Irungattukottai near Chennai, India.

In 1998, Hyundai began to overhaul its image in an attempt to establish itself as a world-class
brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung Mong Koo,
in 1999. Hyundai's parent company, Hyundai Motor Group, invested heavily in the quality,
23
design, manufacturing, and long-term research of its vehicles. It added a 10-year or 100,000-
mile (160,000 km) warranty to cars sold in the United States and launched an aggressive
marketing campaign.

In 2004, Hyundai was ranked second in "initial quality" in a survey/study by J.D. Power and
Associates. Hyundai is now one of the top 100 most valuable brands worldwide. Since 2002,
Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup.

In 2006, the South Korean government initiated an investigation of Chung Mong Koo's
practices as head of Hyundai, suspecting him of corruption. On 28 April 2006, Chung was
arrested, and charged for embezzlement of 100 billion South Korean
won (US$106 million).As a result, Hyundai Vice Chairman and CEO, Kim Dong-jin, replaced
him as head of the company. On 30 September 2011, Yang Seung Suk announced his
retirement as CEO of Hyundai Motor Co. In the interim replacement period, Chung Mong-Koo
and Kim Eok-jo will divide the duties of the CEO position.

2.3 HYUNDAI MOTOR IN INDIA

Hyundai Motor India Limited is currently the second largest auto exporter from India. It is
making India the global manufacturing base for small cars . Hyundai Motor India Limited
(HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea. It
is the second largest automobile manufacturer with 16.2% market share as of February 2019
and US$5.5 billion turn-over in India.

HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was a runaway
success. Within a few months of its inception HMIL became the second largest automobile
manufacturer and the largest automobile exporter in India. HMIL’s fully integrated state-of-
the-art manufacturing plant near Chennai boasts of the most advanced production, quality and
testing capabilities in the country. HMIL has set up a modern multi- million dollar research
and development facility in the cyber city of Hyderabad. It aims to become a center of
excellence for automobile engineering and ensure quick turnaround time to changing consumer
needs. As

HMC’s global export hub for compact cars, HMIL is the first automotive company in India to
achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more
than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia.

24
For more than a decade till Hyundai arrived, Maruti Suzuki had a near monopoly over the
passenger cars segment because Tata Motors and Mahindra & Mahindra were solely utility and
commercial vehicle manufacturers, while Hindustan and Premier both built outdated and
uncompetitive products. The company is looking its future business growth in Mobility and
has invested $14 million in Delhi based car rental platform Rev. With this strategic investment
in Revv, Hyundai Motor will work to co-develop the company's new growth engine by
developing innovative mobility services that combine technologies such as autonomous driving
and artificial intelligence with the sharing economy to transform people's lives.

HMIL has 475 dealers and more than 1,300 service points across India. HMIL also operates its
own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the
second largest sales and service network in India after Maruti Suzuki.

2.3.1 MANUFACTURING FACILITIES

HMIL has two manufacturing plants in Irungattukottai and Sriperumbudur in Tamil
Nadu.HMIL's manufacturing plant near Chennai claims to have the most advanced production,
quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned
its second plant in February 2008, which produces an additional 300,000 units per annum,
raising HMIL's total production capacity to 600,000 units per annum. Current Production
Capacity with these 2 plants in Irungattukottai and Sriperumbudur increased to 7,00,000 cars
per year.

25
 2.3.2. CURRENT MODELS

Name of Car Year Current Update Generation Vehicle

Introduced Model’s Information
Prod.

Santro 1998 2018 Discontinued 3rd A-Segment

Generation
(2022)

Grand i10 2007 2014 2017 2nd A-Segment

Generation

I20 2008 2020 2023 2nd B-Segment

Generation
(B13)

Xcent 2014 2014 Discontinued 1st Generation A-Segment/

Sub 4-Metre
(2022)

Verna 2008 2023 2023 3rd B-Segment

Generation
(BN7)

Elantra 2006 2016 2022 3rd C-Segment

Generation
(Discontinued)

Venue 2019 2022 2019 1st Generation A-Segment/

Sub 4-Metre
(QXI)

Kona EV 2019 2019 Discontinued 1st Generation B-Segment

Creta 2015 2020 2022 1st Generation B-Segment

(SUI2)

Tucson 2005 2022 2022 3rd C-Segment

Generation
(NX4)

Santa Fe 2009 2019 Discontinued 4th D-Segment

Generation

Grand i10 2019 (AI3) 2023 2023 2nd A-13Segment

nios Generation

26
Alcazar 2021 2023 2023 1st Generation SUI-2
Segment
Ionic-5 2023 2023 2023 1st Generation Electric
Exter 2023 2023 2023

2.3.3. SALES AND SERVICE NETWORK

HMIL has 1000 dealers and more than 3300 service points across India. HMIL also operates
its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has
the second largest sales and service network in India after Maruti Suzuki.

YEAR DOMESTIC SALES (Units) EXPORTS (Units) TOTAL (Units)

1998 8,447 102,806 8,447
1999 17,627 20 17, 647

2000 82,896 3,823 86,719

2001 87,175 6,092 93, 267

2002 102,806 8,245 111,051

2003 120,325 30,416 150,741

2004 139,759 75,871 215,630

2005 156,291 96,560 252,851

2006 186,174 113, 339 299,513

2007 200,411 126,749 327,160

2008 245,397 243,919 489,316

2009 289,863 270, 017 559,880

2010 356,717 247, 017 603,819

2011 373,709 242,330 616,039

27
 2012 391,276 250, 005 641,281

2013 380,000 233, 260 613,260

2014 410,000 191,221 601, 221

2015 476,001 167,268 643,269

2016 500,537 161,517 662,054

2017 527,320 150,901 678,221

2018 550,002 160,010 710,012

2019 571,100 120,360 691,460

2020 423,642 98,600 522542

2021 401,410 103,623 505,033

2022 553,260 57,500 610,760

2023 534,695 32,851 567,546*

Table 0.1: Hyundai Motor India Limited Annual Sales

2.3.4. EXPORTS
HMIL currently exports vehicles to over 92 countries across Africa, Middle East, Latin
America, Australia and Asia. It has been India's number one exporter for the last 10 years
consecutively.

Hyundai Motor India Limited (HMIL) is the largest exporter of passenger cars from India. In
2022, the company exported over 600,000 vehicles, accounting for about 23% of India's total
passenger car exports.

2.3.5. SALES PERFORMACE

Hyundai Motor India Ltd (HMIL), the country's second largest car manufacturer and the largest
passenger car exporter, and cumulative sales stood at 7,20,565 units in 2022-2023.

28
Hyundai has been on a strong sales streak in recent years. In 2022, the company sold a record
3.94 million vehicles worldwide, up 1.4% from the previous year. This made Hyundai the third-
largest automaker in the world, behind Toyota and Volkswagen.

Hyundai's sales growth has been driven by a number of factors, including the popularity of its
SUV lineup, its focus on electrification, and its strong brand reputation. The company's SUV
lineup, which includes models such as the Tucson, Santa Fe, and Palisade, has been particularly
successful. In 2022, Hyundai's SUV sales grew by 11.5%.
Hyundai has also been investing heavily in electrification. In 2022, the company launched the
IONIQ 5, its first dedicated electric vehicle. The IONIQ 5 has been a critical and commercial
success, and it helped to boost Hyundai's electric vehicle sales by 300% in 2022.
Hyundai's strong brand reputation has also been a factor in its sales growth. The company has
been consistently ranked as one of the most reliable and trustworthy automakers in the world.
In 2022, Hyundai ranked first in the J.D. Power Initial Quality Study and the Consumer Reports
(CR) Owner Satisfaction Survey.
Hyundai's sales performance is expected to continue to grow in the coming years. The company
is planning to launch a number of new models, including the IONIQ 6, an electric sedan, and
the Santa Cruz, a pickup truck. Hyundai is also planning to expand its electric vehicle lineup
with new models in the near future.

2.3.6. AWARDS AND ACHIEVEMENTS

• World Car of the Year: The Hyundai IONIQ 5 won the 2022 World Car of the Year award,
as well as the World Electric Vehicle of the Year and World Car Design of the Year awards.

• IIHS Top Safety Pick+: Hyundai vehicles have won more IIHS Top Safety Pick+ awards
than any other automaker.

• J.D. Power Initial Quality Study: Hyundai has ranked first in the J.D. Power Initial Quality
Study for nine consecutive years.

• Automotive Consumer Reports (ACR) Overall Vehicle Score: Hyundai vehicles have
consistently ranked at the top of the ACR Overall Vehicle Score rankings.

• Customer Satisfaction Index (CSI): Hyundai has ranked first in the CSI rankings for nine
consecutive years.

29
• J D Power Appeal Awards 2016 demonstrating excellence of 'Made In India' Products as
per global standards for Grand i10, Elite i20 & Creta.
• JD Power Indian Customer Satisfaction Award 2017 – For Ranking Number 1 in After
Sales Customer satisfaction.
• 2022 Autocar Awards: Hyundai won three awards at the 2022 Autocar Awards, including
Best Electric Car for the IONIQ 5, Best Large Car for the Santa Fe, and Design Hero for
SangYup Lee, the head of Hyundai Global Design Center.

• 2022 Good Design Awards: Hyundai won four GOOD DESIGN Awards in 2022, including
for the Prophecy concept car, which was also named 'Best of the Best' at the Red Dot design
awards.

• 2022 J.D. Power APEAL Awards: The Hyundai Palisade and Santa Cruz won top honors
in the J.D. Power APEAL Awards, which measure how well vehicles meet the needs and
expectations of consumers.

2.4. RAHUL HYUNDAI, SHIVAMOGGA

30
RAHUL HYUNDAI has dealership with Hyundai Motor India Ltd. (HMIL). Being a premium
car dealership always endeavor to achieve highest level of customer satisfaction and improving
the buying experience for the customers. It has best of the sales staff to cater all customer’s car
buying needs and also have the skilled professional to take care for car services and other
requirements.
RAHUL HYUNDAI not only sells Hyundai car, we also deals in Used Cars, Insurance,
Finance, Accessories. The company takes care of every need of customer while buying a car.
With state-of-the-art workshops coupled with the company-trained technicians, it offers an
instant, efficient and personalized customer service. It is this dedication to service and the
maintenance of highest levels of customer satisfaction that have been the platform of its
dealership success. There are many different functional areas such as Finance Department,
Insurance Department, Sales Department, Marketing Department, HR Department, and
Customer Service Department etc.
Car buying is always everybody's dream, and it is a very special occasion, we as a premium
Hyundai car dealership always endeavor to achieve highest level of customer satisfaction and
improving the buying experience for our customers. We have best of the sales staff to cater all
your car buying needs and also have the skilled professional to take care for your car services
and other requirements. We not only sells Hyundai car, we also deals in Used Cars, Insurance,
Finance, Accessories. We take care of your every need while buying a car. With state-of-the-
art workshops coupled with the company-trained technicians, we offers you an instant, efficient
and personalized customer service. It is this dedication to service and the maintenance of
highest levels of customer satisfaction that have been the platform of our dealership success.

31
Rahul Hyundai was established in heart of Malenad city Shivamogga, in 2013. It has a total of
150+ Employees and having a very good co-relation between the employees & the Customers.
While expanding Hyundai network in Non metropolitian city, Rahul Hyundai has 4 branches
namely:
• Sagara
• Theerthahalli
• Chikmagalur
• Shikaripura
Rahul Hyundai has 2 Managers, 4 Team Leaders

Business Head Ramesh L

Branch Head Kiran N
Location Shivamogga
Email saleshead@rahulhyundai.in
sales.shivamogga@rahulhyundai.in
Contact Number Ramesh L: 7795800023
Kiran N: 6364465441

32
2.5 MARKETING DEPARTMENT OF RAHUL HYUNDAI:
They basically communicate the value of the product to the customers for that this department
is divided into three teams ATL (Above the Line), BTL (Below the Line) and LOYALTY. In
ATL they are covering large Geographical area by advertising from Radio, TV, and National
newspapers and in BTL they are covering targeted area by organizing events. In LOYALTY
they are distributing Cards and coupons to customer first to check loyal customer and then start
analyze about loyal customer’s next need and offer it to customer on discount. It is one of the
innovative departments and generating new idea.

2.6. COMPETITORS OF HYUNDAI IN INDIA

2.6.1 MARUTI SUZUKI:

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car and motorcycle
manufacturer Corporation. As of July 2018, it had a market share of 53% of the Indian
passenger car market. Maruti Suzuki manufactures and sells popular cars such as
the Ciaz, Ertiga, Wagon R, Alto K10 and Alto 800, Swift, Celerio, Swift Dzire, Baleno and
Baleno RS, Omni, Baleno, Eeco, Ignis, S-Cross and Vitara Brezza. It headquarters in New
Delhi. In May 2015, the company produced its fifteen millionth vehicle in India, a Swift Dzire.

2.6.2 HONDA:
Honda Motor Company Ltd., is a Japanese public multinational conglomerate corporation
primarily known as a manufacturer of automobiles, motorcycles, and power equipment. Honda
also manufactures garden equipment, marine engines, personal watercraft and power generators, and other
products. Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986, Aside from their core automobile and motorcycle businesses. In 2013,
Honda invested about 5.7% (US$6.8 billion) of its revenues in research and development. Also
in 2013, Honda became the first Japanese automaker to be a net exporter from the United States,
exporting 108,705 Honda and Acura models, while importing only 88,357.

33
2.6.3 TATA:
Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an
Indian multinational automotive manufacturing company headquartered
in Mumbai, Maharashtra, India. It is a part of Tata Group, an Indian conglomerate. Its products
include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and
military vehicles.

2.6.4 TOYOTA
Toyota Motor Corporation’s a Japanese multinational automotive manufacturer headquartered
in Toyota, Aichi, Japan. In 2017, Toyota's corporate structure consisted of 364,445 employees
worldwide and, as of September 2018, was the sixth-largest company in the world by revenue.
As of 2017, Toyota is the largest automotive manufacturer. Toyota was the world's first
automobile manufacturer to produce more than 10 million vehicles per year which it has done
since 2012, when it also reported the production of its 200-millionth vehicle.

2.6.5 NISSAN
Nissan Motor Co., Ltd., usually shortened to Nissan is a Japanese multinational automobile
manufacturer headquartered in Nishi-ku, Yokohama. The company sells its cars under the
Nissan, Infiniti, and Datsun brands with in-house performance tuning products labelled Nismo.
The company traces its name to the Nissan zaibatsu, now called Nissan Group.

2.7. MARKET SHARE OF HYUNDAI AND ITS COMPETITORS IN 2018-

2019

1% 1%
Sales
3%
2% 1%
5% Maruti Suzuki
5% Hyundai
Mahindra and Mahindra
7%
TATA Motors
8% 51%
HONDA Cars India
16% TOYOTA
FORD India

34
2.8 MARKET SHARE OF HYUNDAI AND ITS COMPETITORS IN 2022

• Maruti Suzuki reported YoY growth of 6.8%, while the Industry grew by almost 16%.
Hence, Maruti lost Market Share of over 3.5%.

• Hyundai is now being regularly challenged by Tata Motors for the second spot.
Hyundai was just 2.9k units ahead of Tata and the gap in Market Share was a merger
0.9%.

• Tata Motors posted its highest every month sales in the month of July 2022 at 47,505
units, which helped the OEM record a YoY growth in sales of 57%, as compared to the
35
 same month last year. Tata Motors claimed that its SUVs constitute 64% of total sales,
with a YoY growth of 105% over July 2021

2.8. MARKET STRATEGY IMPLEMENTATION

• Advertising: The advertising may involve the process of advertisements on Television,
Radio, Newspaper, Auto Magazines, and events like Auto Expo
- T.V. Advertising; T.V. advertising may involve the advertisement at peck hours of
television viewing or during the cricket match time in the slog over which in turn may
lead to maximize exposure and thus maximum impact on final buyers.
- Advertising in Newspaper (twice in a Week): The concept of advertising on
newspaper may increase the sale since the newspaper would be able to explain the
characteristics and features of cars, because it is an easy way to reaching the decision
makers and thus in turn may directly influence their decision.
- Advertising on Radio: With FM gaining more and more popularity amongst people,
people especially love to listen to FM while driving. Thus, this could be another means
of influencing the prospects for services like True Value at the time of 1hour in the
morning and 1 hour in the evening when the people are traveling towards their office
or coming back.
- Auto Magazines (monthly) and auto expo yearly: The Company would advertise on
auto magazine like Auto cars, motoring etc. where entire information on product and
newer features would be explained. The cover page or back page advertisement would
be used for product communication.
• Celebrity Endorsement: This entirely depends on the company’s policy whether they
would like to spend a fixed amount (which may depend upon the personality).
• Incentives / Penalty on meeting a sales target: The company would work with dealers
with the policy of carrot and stick which may involve incentives like a foreign tour package,
gifts, and monetary incentives such as increased margin for meeting a sales target or
working with dealers on contractual basis rather than a permanent basis if they are not able
to reach sales over a period of time.
• Assemble line modifications: Since in A1 and A2 segments there is need for change in the
design and specification this would involve change in assembly line.

36
2.9. SWOT ANALYSIS BY HYUNDAI
2.9.1 Strength:

• Effective research and development (R&D) spending resulting in new innovative cars.

• Strong presence in China’s market

• Among the automobile players only HMIL is known for its CSR activities
• Hyundai, has the largest network of showrooms and service station next to Maruti in India
• The domestic sales is increasing at an average rate of 19.1%
• Hyundai Motor India limited is the largest car exporter from Asian Market which showed
a 10% growth compared to last FY.

2.9.2 WEAKNESS:
• As Hyundai concentrates on quality, most of their products are in the premium category in
each segment. Hyundai is still struggling to make a better impact in the small car segment
in terms of cost efficiency like other manufactures.
• Hyundai doesn’t have any product match to compete in corporate orders like Tata Indica
V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most
preferred in both cab segment and government booking for bulk orders
• Since HMIL concentrates on both domestic and International sales there are higher risks of
exchange rate fluctuations
• Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not
have PAN India presence.

2.9.3 OPPORTUNITIES:
• Hyundai has very good opportunity in entering commercial vehicles and Recreational
vehicles as they are already doing well outside India. Currently HMIL has its focus only on
Passenger car segment.
• Improving US Economy
• Timing and frequency of new model releases
• Removal of International Trade Barriers

2.9.4 THREATS
1. Increased Competition
2. Rising Korean Won Exchanges Rates
37
 3. Increasing Government regulations may raise the costs.

2.10 SWOT ANALYSIS CONDUCTED

2.10.1 Strengths:
• Affordable and reliable vehicles: Hyundai vehicles are known for being affordable and reliable.
This has helped the company attract a wide range of customers, including price-sensitive
buyers.
• Innovative designs: Hyundai has been praised for its innovative designs. The company has
introduced a few new features and technologies in its vehicles, such as Blue Link telematics
and Smart Sense safety features.
• Commitment to sustainability: Hyundai is committed to sustainability. The company has set a
goal of becoming carbon neutral by 2045. Hyundai is also investing heavily in electric vehicles.

• Strong global presence: Hyundai has a strong global presence. The company sells vehicles in
over 190 countries. This gives Hyundai a large potential customer base.

• Growing market share in key markets: Hyundai is growing market share in key markets, such
as China and India. This is a positive sign for the company's future.

• Strong brand reputation: Hyundai has a strong brand reputation. The company is ranked sixth
in the world by Interbrand. This strong brand reputation helps Hyundai attract new customers
and retain existing ones.

2.10.2 Weaknesses:
• Poor brand portfolio: Hyundai's brand portfolio is not as strong as some of its competitors. The
company's lineup of vehicles is somewhat fragmented, and it lacks a clear brand identity.
• Low presence in the US and Japanese markets: Hyundai has a low presence in the US and
Japanese markets. These are two of the largest automotive markets in the world, and Hyundai
is missing out on a significant opportunity by not having a stronger presence in these markets.
• Declining quality of management: There have been some concerns about the declining quality
of management at Hyundai. This has led to some product recalls and other problems.
• Product recalls damaging brand reputation: Hyundai has had a number of product recalls in
recent years. These recalls have damaged the company's brand reputation.
• Overall, Hyundai is a strong company with a bright future. The company has a number of
strengths, but it also has some weaknesses that it will need to address in order to continue to
grow and succeed.

38
• Hyundai's affordable and reliable vehicles have helped the company to gain market share in
emerging markets, such as India and China.
• Hyundai's innovative designs have helped the company to stand out from its competitors. For
example, the Hyundai Kona Electric was one of the first mass-market electric SUVs on the
market.
• Hyundai's strong brand reputation has helped the company to attract new customers and
maintain customer loyalty. For example, Hyundai was ranked as the sixth most valuable
automotive brand in the world in 2022.
• Hyundai has been working to improve its brand portfolio by introducing new models, such as
the Genesis GV80 luxury SUV.
• Hyundai has been expanding its presence in the US market by opening new dealerships and
increasing its marketing efforts.
• Hyundai has been investing in research and development to develop new technologies, such as
self-driving cars and hydrogen fuel cell vehicles.
Overall, Hyundai is a well-managed company with a strong track record. The company is well-
positioned to continue to grow and succeed in the years to come.
2.11 STP of Hyundai
2.11.1 Segmentation:
Hyundai segments its market based on a variety of factors, including:
• Geography: Hyundai sells its vehicles in over 190 countries around the world.
• Demographic: Hyundai's target customers include young professionals, families, and retirees.
• Psychographic: Hyundai's target customers are value-conscious buyers who are looking for a
reliable and stylish vehicle.
• Behavioral: Hyundai's target customers are those who are looking for a fuel-efficient vehicle
or a vehicle with advanced technology.

2.11.2 Targeting:
Hyundai targets its marketing efforts at a variety of segments, including:
• Entry-level: Hyundai's entry-level vehicles, such as the Accent and Elantra, are targeted at
young professionals and first-time buyers.
• Mid-range: Hyundai's mid-range vehicles, such as the Sonata and Santa Fe, are targeted at
families and middle-class buyers.
• Luxury: Hyundai's luxury brand, Genesis, is targeted at affluent buyers who are looking for a
premium vehicle.
39
 2.11.3 Positioning:
Hyundai positions itself as a value-oriented automaker that offers stylish and reliable vehicles.
The company's tagline, "The Power to Surprise," reflects its commitment to providing
customers with unexpected value.
Hyundai's STP strategy has been successful in helping the company grow its market share and
become a global automaker. The company's focus on value, style, and reliability has resonated
with consumers around the world.

2.11.4 STP Analysis Interpretation

• Segmentation: Hyundai has segmented its market by geography, demographics,
psychographics, and behavior. This allows the company to target its marketing efforts more
effectively and reach the right customers with the right message.
• Targeting: Hyundai targets a variety of segments, including entry-level, mid-range, and luxury.
This allows the company to appeal to a wide range of consumers and grow its market share.

• Positioning: Hyundai positions itself as a value-oriented automaker that offers stylish and
reliable vehicles. This positioning has helped the company to differentiate itself from its
competitors and build a strong brand reputation.

By effectively implementing its STP strategy, Hyundai has become a global automaker with a
strong brand reputation. The company is well positioned to continue to grow in the years to
come.

40
 CHAPTER 3 RESEARCH OBJECTIVES AND

METHODOLOGY

3.1.OBJECTIVE OF STUDY

• To practically observe the sales promotion activities carried by RAHUL HYUNDAI

• To understand the tools and techniques of sales promotions that used by Rahul Hyundai

• To know the level of customer satisfaction towards the sales promotion carried.

3.2 NEED FOR THE STUDY

Presently all companies are giving very attractive schemes to their customers and this study is
aimed at, what is in the mind of customers with reference to the sale/purchase, their
expectations, to increase the sales of Rahul Hyundai.

Since there are very few companies in the market, the competition among the companies has
hastened up. All players in this market are trying to prove themselves as a leader. But only
those companies which give the superiority to quality products with high competitive pricing
and attractive promotional schemes, can only able to be the market leader.

3.3 RESEARCH METHODOLOGY:

This report throws light on the satisfaction level of customer at RAHUL HYUNDAI,
Shivamogga. For completion of this report a survey was conducted and for fulfillment of
questionnaire, a sample size of 100 was selected. Different researchers have defined research
in various ways due to its wide scope.
3.3.1 Overview of Research Methodology:

Research Type Descriptive Research

Population Size Customers of Rahul Hyundai, Shivamogga

Sampling Technique Convenience Sampling

Sampling Area Shivamogga

Sampling Size 100

Data Collection Instrument Questionnaire

Data Collection

Questionnaire
Primary

Journals, Websites, Books

Secondary

3.3.2 DESCRIPTIVE RESEARCH:

Descriptive Research is the process of finding solutions for a problem after a tough study and
analysis of situational factors. It tries to solve a complex and complicated problems through
uses of various tools and techniques. These tools and techniques try to bring out a logical
accurate and scientific solution for a given problem.

3.3.3 RESEARCH DESIGN:

Research Design is the arrangement of conditions for collections and analysis of data in a
manner that aims to combine relevance to the research purpose economy in procedure in fact
the research design is the conceptual structure within which research is conducted. It constitutes
the blue print for the collection and analysis of data. The research design adapted in the study
was descriptive study.

42
3.4 SAMPLING TECHNIQUE:

The sampling technique which was used is convenience sampling.

3.5 Data Collection Method:

3.5.1 Primary Data:

The data collected by the researcher himself for finding the solution of a particular problem or
situation, is known as primary data. This type of data is characterized by its originality as it is
freshly collected.

Here, I’m taking questionnaire as data collection instrument because it will help me to ask some
questions to customer regarding my research, through which I can easily analyze the data.

3.5.2 Secondary Data:

Secondary data is the one which is collected by someone else and already used in some or the
other form. Here the secondary data used was the theoretical aspects of promotional tools and
the statistical method made use of.

3.6 SAMPLING DESIGN:

A sampling design is a defining plan for obtaining a sample from a given population. It refers
to the technique or the procedure, the research would adopt in selecting items for the sample.
Sample is the process of selecting a sufficient number of elements from the population, so that
a study of the sample and an understanding of its properties or characteristics would make it
possible for us to generalize such properties or characteristics to the population elements.

3.7 SAMPLE POPULATION:

My sample population is the customers of the Rahul Hyundai, Shivamogga.

3.8 SAMPLE SIZE

Considering the nature and extent of the study and with the time constraint a sample size of
“100” respondents have been taken.

43
3.9 ANALYTICAL TOOLS USED

The analytical tools used are mostly graphical in nature which includes:

• Pie Charts

• Percentage Table

3.10 LIMITATION OF THE STUDY

• The project was limited to a period of 6 weeks and is done purely for the academic purpose.
So it is very difficult to cover the large no. of customers.

• It is possible that the information supplied by the informants may be incorrect, because
some of the respondents are not cooperative. So, the study may lack accuracy.

44
 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

4.1 Questionnaire Design

Q.1. Do you know about the sales promotion activities carried out by HYUNDAI?

Particular No. of Respondent

YES 96

NO 4

Fig. No.1

Sales
YES NO

4%

96%

Interpretation: In the above graph we can see that 96% of respondents know that the sales
promotion activities carried out by Hyundai and rest of the 4% respondent don’t know about
the sales promotion activities carried out by Hyundai.

Q.2. How do you know about Hyundai Cars?

Particulars No. of respondents Percentage

TV Ads 33 33
Existing Customers 21 21.0
 Magazines 24 24.0
Friend 12 12.0
Internet 10 10.0
Total 100 100.0

Fig.no.2

10%

TV ADS
12% 33%
Existing Customers
Magazines
Friend
Internet
24%
Total

21%

Interpretation: From the above graph shows that 33% of the respondent came to know of
Hyundai car through TV ads 24% of the respondent through magazine,21% of the respondent
through existing customer and 12% of respondent from friend, 10% of respondent through
internet. The above explained that majority of respondent are TV Ads and magazines.

Q.3. Does the Sales Promotion of Hyundai attract you to buy car?

Particulars No. of Respondents

Yes 83

No 17

Fig. No.3: Sales promotion Attracts Customer to buy a car

46
 17%

YES
NO

83%

Interpretation: Among the total respondents 83% said yes that Sales Promotion attract them
to buy car and rest of the 17% says N0.

Q.4.Which of the following sales promotional activities exerted major influence your
decision to buy Car from RAHUL HYUNDAI?

Particular No. of respondent

Price off 30

Discount Coupons 20

Contest 07

Cash Refund 25

Scratch Cards 03

Prizes 15

Total 100

Fig.4.Sales Promotion Activities exerted major influence

47
 Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Interpretation: Among all the major sales promotional activities carried out by Rahul
Hyundai, Prize off and Cash Refund take major with 30% and 25 % respondents respectively
followed by discount coupons with 20% respondents while buying car.

Q.5. Sales Promotion activities create immense awareness about brands?

Particular No. of Respondent

Strongly Agree 22

Moderately Agree 25

Agree 35

Strongly disagree 02

Moderately disagree 06

Disagree 10

TOTAL 100

Fig.5. Sales promotions create immense awareness about brands

48
 10%
22%
6%
2%
Strongly Agree
Moderately Agree
Agree
Strongly disagree
Moderately disgree

25% disagree
35%

Interpretation: Among the total customers interviewed (82%) agree with the statement
that sales promotional activities create a great deal of awareness among prospective buyers
about their brands while buying a car.

Q.6. Does the Sale Promotion activities of RAHUL HYUNDAI made you to visit RAHUL
HYUNDAI again?

Particulars No. of respondents

Yes 85

No 15

Fig.6. Visit of Customers again after seeing the sale promotion activities

49
 15%

YES
NO

85%

Interpretation: From the above chart we can see that 85% said yes that sales promotion of
Hyundai made them visit again in RAHUL HYUNDAI and rest of the 15% said No.

Q.7. Measure the customer’s satisfaction level with the sales promotions activities carried
by the Rahul Hyundai?

Particulars No. of Respondents % of Respondents

Excellent 26 26%

Good 20 20%

Average 38 38%

Poor 09 09%

Very Poor 07 07%

Total 100 100

Fig.7.Satisfaction level with the sales promotional activities

50
 Excellent Good Average Poor Very Poor

7%
9%
26%

38% 20%

Interpretation: From the survey it is evident that 38% of the respondents are Neutral, 26% of
the respondents highly satisfied, 20% are satisfied, 9% of respondents are dissatisfied and 7%
is highly dissatisfied regarding satisfaction levels with the sales promotions activities carried
by the company.

Q.8.Which of the following innovative and better promotions you think RAHUL
HYUNDAI should use?

Particular No. of respondent

Free Gifts 25

Car Related Accessories 50

Cents off Deal 15

Loyal Reward Program 10

51
 Fig.No.8
Free Gifts Car related accessories
Cent off deals Loyal Reward Program

10%
25%
15%

50%

Interpretation: In the above graph we can see that 50% of the respondents thinks that RAHUL
HYUNDAI should use providing the car related accessories as a new innovative sales
promotion, 25% think that use provide Free Gifts, 15% of the respondent advise to use Cent
Off Deals and rest of the respondents 10% think RAHUL HYUNDAI should give Loyal
Reward Cards.

Q.9. According to you what is the role of “Sale Promotion” in marketing?

Particulars No. Of Respondent

Increase Brand Awareness 07

Provide Information 17

Increase Sale 74

Fig.No.9. Role of Sales Promotion in marketing

52
 7%
17%
Increase Brand Awareness
Provide Information
76%
Increase Sale

Interpretation: In the above chart, 76% believes that sales promotion increases the sales of
product in the market, 7% says that it increase brand awareness and 17% says it provides the
information.

Q.10.Would you recommend RAHUL HYUNDAI to others?

Particular No. of respondent

YES 86

NO 14

Fig. No. 10

14%

YES
NO

86%

Interpretation: In the above chart, we can see that 86% will recommend RAHUL HYUNDAI
to others and rest of the 14% will not recommend RAHUL HYUNDAI to others.

53
Q.11. Why you are giving first preference to buy a Hyundai while buying a small car.

Response Percentage
Good Facility 50%

Good Quality 30%

Better Mileage 20%

Percentage

20%

50%

30%

Good Facility Good Quality Better Mileage

54
 CHAPTER 5: FINDINGS, RECOMMENDATION AND
CONCLUSION
5.1 FINDINGS:
Brand awareness, Brand familiarity, brand likeability, Sales promotion, and marketing
communication in this study. In theory, if a person is unfamiliar with a brand, the information
they get from the marketing communication and should have a relatively strong influence on
their attitude towards the brand.

• Among the total customers surveyed, 96% customers knew the sales promotion
activities carried out by Hyundai or its distributor RAHUL HYUNDAI.
• 33% customers knew about the Hyundai cars through TV Advertisement, 24% through
Magazines, 21% know through the existing customers and rest of the respondent
customers knew about it through internet and friends.
• 50% customers believe that Price Off and discount coupons are the sales promotion
activities, which made them major influence while buying car from Hyundai.
• 85% of the respondent visit the RAHUL HYUNDAI after seeing the sales promotion
carried out and 15% of the respondent said no.
• 83% of the respondents said yes that the sales promotion of Hyundai attract them to
buy a car from Hyundai and 17% said no that the sales promotion of Hyundai didn’t
attract them.
• 50% of the respondents thinks that RAHUL HYUNDAI should use providing the car
related accessories as a new innovative sales promotion, 25% think that use provide
Free Gifts, 15% of the respondent advise to use Cent Off Deals and rest of the
respondents 10% think RAHUL HYUNDAI should give Loyal Reward Cards.
• From the survey it is evident that 38% of the respondents are neutral, 26% of the
respondents highly satisfied, 20% are satisfied, 9% of the respondents are dissatisfied
and 7% highly dissatisfied regarding satisfaction levels with the sales promotion
activities carried by the Company.
• 86% will recommend RAHUL HYUNDAI to others and 14% will not recommend
RAHUL HYUNDAI to others.
• According to 74% respondents, Company does the sales promotional activities to
increase its sale and 17% of the respondent thinks that sales promotional activities
 provide the information regarding the product and 7% believes that it creates the brand
awareness among the people.
• 86% will recommend RAHUL HYUNDAI to others and 14% will not recommend
RAHUL HYUNDAI to others.

5.2. Suggestions:
• Aggressive Ad Campaign: RAHUL HYUNDAI should put a few hoardings in different
areas in Shivamogga city and advertise effectively in local cable channel.
• Educating the Customers: RAHUL HYUNDAI should educate the customers about the
maintenance of vehicles.
• Attracting Schemes: RAHUL HYUNDAI should provide attractive schemes at the time
of after sales. Like giving quick service and charging them reasonably.
• Personal Touch with the customers: Asking the customers to come regularly for
servicing even after the warranty period.
• Use Innovative Measures: RAHUL HYUNDAI should use new and Innovative and
creative measures for the Sales Promotions. They should start providing Free Gifts, Car
Related accessories, Goodies, Loyal Reward Programs, Cent off Deals.

5.3. CONCLUSION:
This effort for the innovation in sales promotion of Hyundai car will help the road shows, TV
Advertisement, Mouth publicity etc. And other thing is provide some offers like Discount,
Diwali offers, Free Gift like music system, Accessories etc. My project is a key to open the
door of greater comfort to the all segment.

It is the concluded that sales promotion is important to improve the sales of the company and
to reach new customers. Each and every organization should have a good strategic plan for
their promotion to withstand in the market with huge competition. The discounts and loyalty
program in the company will improve the sales by attracting new customers. The best sales
promotion will help the company to fulfill the organizational objectives. The sales promotion
is must to improve their sales in every organization. The sales is monitored based on the
promotional activities practiced by the organization, the company should have better
promotional activities practiced in the organization to estimate the sales.

56
 ANNEXURE

(A). QUESTIONNAIRE
Name: ________________________________________________________________

Address of the customer: ________________________________________________

Occupation: _____________________ Vehicle Owned: ___________________

Age: ____________________________

Q.1. Do you know about the sales promotion activities carried out by HYUNDAI?

1. YES
2. NO

Q2. How you aware about Hyundai Cars?

1. TV ADS
2. Existing Customer
3. Magazines
4. Friend
5. Internet

Q.3. Does the Sales Promotion of Hyundai attract you to buy car?

1. YES
2. NO

Q.4.Which of the following sales promotional activities exerted major influence on your
decision to buy Car from RAHUL HYUNDAI?
1. Price off
2. Discount Coupons
3. Contest
4. Cash Refund
5. Scratch Cards
6. Prizes
Q.5.Sales Promotion activities create immense awareness about brands?
1. Strongly Agree
2. Moderately Agree
3. Agree
4. Strongly disagree
5. Moderately disagree
6. Disagree

Q.6. Does the Sale Promotion activities of RAHUL HYUNDAI made you to visit RAHUL
HYUNDAI again?
1. YES
2. NO
Q.7. Measure the satisfaction levels with the sales promotion’s activities carried out by
Rahul Hyundai?
1. Excellent
2. Good
3. Average
4. Poor
5. Very Poor

Q.8.Which of the following innovative and better promotions do you think RAHUL
HYUNDAI should use?

1. Free Gifts
2. Car Related Accessories
3. Cent off
4. Loyal Reward Program

Q.9. According to you what is the role of “Sale Promotion” in marketing?

1. Increase Brand Awareness
2. Provide Information
3. Increase Sale

Q.10.Would you recommend RAHUL HYUNDAI to others?

1. YES
2. NO

58
Q.11. Why you are giving first preference to buy a Hyundai while buying a small car?

1. Good Facilities
2. Good Quality
3. Better Mileage

59
 BIBLIOGRAPHY

Books:
o Marketing Management by Philip Kotler
o Positioning: The Battle for your mind by Al Ries & Jack Trout

Newspapers, Journals & Magazines

o Business Standard
o Amar Ujala
o Economic Times
o Auto car India
Websites
www.hyundai.co.in
www.hyundai.com
www.google.com
www.businessmanagementideas.com
www.shareyouressays.com
www.mymbaguide.com