brand perception of indian automobiles among corporates[1]
TRANSCRIPT
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N.L.DALMIA INSTITUTE OF
MANAGEMENT STUDIES AND RESEARC
PROJECT
ON
BRAND PERCEPTION OF
INDIAN AUTOMOBILES
AMONG CORPORATES
BY
PRASHANT KAMAT
PGDBM - MARKETING
PMM-116
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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND
RESEARCH
CERTIFICATE
This is to certify that the project entitled
BRAND PERCEPTION OF INDIAN AUTOMOBILES AMONG
CORPORATES
Is submitted as per the requirement for thePGDBMcourse
SpecializationMARKETING
By
PRASHANT KAMAT
is approved by N.L. Dalmia Institute and has been carried out under the
guidance of Prof. V. Wagh.
Prof P.L. ARYA DR V.WAGH
Director Mark
ACKNOWLEDGEMENT
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It was a pleasure as well as an enriching and educating experience to be exposed the world
of Automobile sector during the creation of the project BRAND PERCEPTION OF INDIAN
AUTOMOBILES AMONG CORPORATES.I wish to wholeheartedly thank our respected Prof.V. Wagh for guiding me in my project by giving me the essence of knowledge & information,
which he has derived from years of erudition & relevant experience. He was the one who
gave me the opportunity to work on this project. But for his direction, this project would have
been a distant dream. I have tried to incorporate some of the viewpoints that I have garnered
from him into this project.
I would also like to acknowledge the sincere support of Mrs. Sujata Dsouza & Mr. Yogesh of
our library for extending their co-operation to me to gather the project related information.
Last but not the least I would like to thank all my seniors and colleagues & friends who have
helped me directly or indirectly in completion of this project
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PROJECT CONTENTS
CHAPTER
No.TOPIC
I Executive Summary
II Problem Statement
III Research Objective
IV Industrial Background
VBrand Perception of B & C
Segment
VI Conclusion & Recommendations
XII
APPENDIX
Questionnaire
EXECUTIVE SUMMARY:
The survey is to find out which is the most important factor for corporate in
deciding the brand perception and buying behavior for cars. Whether
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people in the Administrative team involved in purchasing of cars for their
organization gave more priority to price than performance. The survey is
also find out whether in todays competitive situation the final purchase of
cars could boil down to the after sales service and features provided by the
manufacturer. Whether general buyers and Corporate stress on same
parameters in their purchase of cars. Based on the above findings
manufacturers can take in to account in future all such parameters which
lead to brand building.
PROBLEM STATEMENT:
Manufacturer can find it difficult to know the exact problem regarding unacceptance of
their previous brand .what could be the reasons for their sluggish sales and hence
market share.
RESEARCH OBJECTIVES:
TO MEASURE BRAND PERCEPTION OF CARS AMONG CORPORATE
Brand Image of a company is vital for the short term as well as long term success of the
company. It is therefore necessary to identify the exact Brand Image of the Company in the
corporate sector, since the image could vary between the corporate users and general users.
Also since Corporate are bulk buyers of vehicles it is obvious that Brand Equity would
command a major role in their decision making.
IMPORTANCE OF THE STUDY:
Manufacturer can take in to consideration all such parameters in the design of a car
where features would be perceived as benefits. This in turn would result in brand
building.
Give suggestions on the new product features which corporate perceive as benefits.
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RESEARCH DESIGN:
Measure the Brand Perception of cars among Corporate.
To find out the factors Corporate take into account while buying cars.
Use of EXCEL package for analysis
EXECUTIVE SUMMARY OF INDIAN AUTOMOBILE INDUSTRY:
The Indian Passenger Car market has undergone interesting transformation in the past fifty
years. In the forty years since Independence the Indian passenger car Industry had seen very
little activity and the consumer choice was restricted to only very few models. The
government took a major initiative to introduce a new player to the Indian customers when it
entered in to a joint venture with Suzuki Motors of Japan in 1983. Even then, the government
ensured that it had the majority stake of 76 percent in the company, lest its control over the
passenger car market would decrease. Maruti was a success story in India and people, who
had been bored of the two bland models of Ambassador and Padmini, readily opted for the
new model at a lower cost. Thus, Maruti emerged as the t rue peoples car. From 1984 to
1998, Maruti Udyog limited enjoyed a dominant position in the Car market with a market
share of 82 percent. The government decided to deli censes the Passenger Car sector in
1993. Thus the market again underwent a major upheaval when the Korean, German,
Japanese, American MNCs started flooding the market with various models in all possible
price segments. All of a sudden, the market was flooded with models of various size and
prices. This greatly enhanced the choice of the consumers. But the large number of models
did not lead to a corresponding increase in the demand for cars, and hence in the present
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situation the Indian Car market is afflicted with overcapacity. This is not hindering the MNCs
from entering the Indian manufacturing unit as their Export base.
It will really be interesting to closely watch the changes that are going to take place In this
sector in the next 10 years. The future looks as if there will be major shakeouts in thePassenger Car market.
PRESENT SITUATION:
CATEGORY MODELS
A SEGMENT MARUTI 800
B SEGMENT PALIO, SANTRO, INDICA, ZEN, ALTO
C SEGMENT ESTEEM, SIENA, ACCENT, IKON, ASTRA,
CORSA, BALENO, CITY,
PREMIUM SEGMENT LANCER, OCTAVIA
LUXURY SEGMENT SONATA, ACCORD, BENZ, MONDEO,
INDUSTRY STRUCTURE:
The Indian car Industry can be classified based on the price of the car, which is shown below
in the table. One of the things to note here is that the models shown below have many
variants, which can result in overlapping across segments.
This Segmentation is done according to Prices of basic models.
POLICY ON PETROLEUM PRODUCTS, AUTO EMISSION AND DEPRECIATION:
The price of Petrol and Diesel was regulated until recently by the government as part of its
policy on petroleum products management. This dismantling of the Administered price
Mechanism (APM) of petroleum products will reduce the cost disadvantage of Petrol driven
Cars.
On the vehicle Emission front, judicial activism has goaded the government to take certain
policy measures in the recent past, which has led to stricter Emission norms for Automobiles.
As a result, all existing players and new entrants have started introducing models with Fuel
Injection system to meet Euro2 norms. This development has led to an increase in the Prices
of Cars, which by an estimate, could be anywhere between 10-15%.
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The Depreciation norms have effect on demand for cars as corporate purchase cars for use
by managerial staff and claim depreciation in their books. With this the companies are
benefited from tax shelter provided by depreciation.
HISTORICAL INDUSTRY DEVELOPMENT:
The Beginning:
The Car Industrys history dates as back as late nineteenth century but we can say that Henry
ford founded the Real car Industry when he started Ford Motor Co. in 1903. Before that,
cars were fussy, unreliable, costly novelties. Fords genius was to make them simple, solid
and inexpensive necessities took place in 1913 when ford built an Assembly line, which was
the first example of Mass Production. The second honorable mention in shaping the
Car industry is of Alfred P Slogan Jr. the chairman of General Motors from 1923-1946
AN OVERVIEW OF THE CORPORATE PERCEPTION OF THE B AND C CLASS
SEGMENT CARS.
METHODOLOGY ADOPTED: The respondent was asked to give scores out
of 10 (10 being the highest) to different parameters like price, performance,
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features, safety, esteem and serviceability. After the entire survey, an average
was carried out to arrive as to how cars scored in the above parameters.
A] ON A SCALE OF 1-10, SCORE THE FOLLOWING PARAMETERS- C SEGMENT
Vehicle
Parameters
Ford
Ikon
Fiat Siena Hyundai
Accent
Maruti
Esteem
Performance
Features
Price
Esteem
Serviceability
Safety
FINDINGS OF THE CORPORATE PERCEPTION FOR C CLASS SEGMENT CARS.
FORD IKON:
6.2
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
8
Performance Features Price Esteem Service Safety
7.95
7.35
6.9
7.65
7.4
7.6
FORD IKON
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Ford Ikon was perceived very well on all parameters considered by the corporate. Though it
did not finish first in this category, loosing very slimly to Hyundai Accent, it did manage to get
an edge over its rival on the most important Performance parameter. On a score of 10 Ford
Ikon crossed the 7-figure mark on all parameters, which is good. On the Price parameter too it
was perceived as a good car to go in for bulk Purchases. Ford Ikon was thus a good bet forcorporate car purchases.
FIAT SIENA:
Fiat Siena was perceived badly on almost all parameters considered important by thecorporate. Except the safety parameter where it managed to just touch the 7 level mark, its
perception was average and bad if compared with its rivals. Price perception was also poor
and it was perceived as MoreMoney Less Value. Amongst all the parameters, the worst
perception was that of serviceability thus reflecting the low CSI of FIAT. Overall, Fiat Siena
was the last choice among all the cars considered in the C class segment.
However, the good news for FIAT is that majority of the respondents gave scores keeping
the old Siena in mind. With the new Siena being launched, backed by heavy marketing
initiatives and reduced prices things could just change for FIAT.
HYUNDAI ACCENT:
6
6.25
6.5
6.75
7
7.25
7.5
7.75
8
Performance Features Price Esteem Service Safety
6.55 6.6
6.356.25
5.85
6.9
FIAT SIENA
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Hyundai accent emerged as the clear leader in this survey. It bagged the top preference on
almost all parameters considered important for the survey. In price too it was the most
preferred car for the C class segment cars. This is extremely good considering the fact that
corporate purchases give the most importance to this parameter. In all parameters, it crossed
the 7 level mark. In the Esteem parameter, it managed to cross the impressive 8 level mark
indicating that executives who give importance to this parameter would most likely select this
car.
Overall, the Hyundai Accent was the best-preferred car in this segment for corporatepurchases.
MARUTI ESTEEM:
Maruti Esteem had a decent perception in the corporate world. Though it did not cross the 7
level mark in all parameters, loosing out in features and esteem parameters, it did manage to
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
8
8.2
Performance Price Service
8.1
7.75
7
8.2
7.5
7.85
HYUNDAI ACCENT
6
6.2
6.4
6.6
6.8
7
7.27.4
7.6
7.8
8
Performance Price Service
7.1
6.65
7.45
6.8
7.95
7.05
MARUTI ESTEEM
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out beat all its rivals in the price and service features. The high CSI was thus reflected when
corporate give more scores to the service parameter.
Overall Maruti Esteem was a black horse where none of its rivals could afford to ignore it.
FINDINGS OF THE CORPORATE PERCEPTION FOR B CLASS
SEGMENT CARS.
TATA INDICA:
Tata Indica had a bad perception in the corporate world in comparison to its rivals. Except
the price, parameter where it managed to cross the 7 level mark it lost out in all otherparameters. In the esteem parameter, it was the least preferred car compared to its rivals. It
finished out with an average score of 6.31.
Thus, its only silver lining was its good perception in the price parameter.
FIAT PALIO:
0
1
2
3
4
5
6
7
8
Performance Features Price Esteem Service Safety
6.25 6.25
7.25
5.86.1 6.25
TATA INDICA
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Fiat Palio had a very good perception in the corporate world. Except the service parameter, it
managed to comfortably cross the 7 level mark in all parameters. Though it scored badly in
the service parameter, there was something very interesting to note for FIAT. Fiat Siena had
scored merely 5.8 in service parameter whereas Fiat Palio scored 6.2 in the same parameter.
That indicates that the same people gave higher scores to the service parameter of Fiat palio
compared to Siena when both of these cars were of the same manufacturer. This can thus be
taken as an indication that Palio is increasing the brand equity of FIAT. It also was the first
preference in features and safety parameters.
Fiat Palio managed to close with an average score of 7.16, which is extremely good
considering the fact that it was the last entrant in the B class segment.
HYUNDAI SANTRO:
5.65.8
66.26.46.66.8
77.27.47.67.8
88.28.48.68.8
9
Performance Price Service
7.2
7.6
7
7.55
6.2
7.45
FIAT PALIO
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Hyundai Santro had a decent perception in the corporate world. Though it failed to create any
charm in the esteem and service parameter, it managed to cross the 7 level mark on all other
parameters. It also was perceived very well when it came to performance, next only to its rival
Zen. It also was perceived very well in the features parameters. It finished with an average
score of 7.04.
In spite of all these positives it could bag only the Third position in all the B class segment
cars considered for the survey.
MARUTI ZEN:
Maruti Zen was perceived the best in all the B class segment cars. In the top parameters
considered by the corporate like Performance and Price, it was the voted as the best choice.
In the service parameter it touched the prestigious 8 level mark reflecting Marutis high CSI. It
6
6.2
6.4
6.6
6.8
7
7.2
7.4
7.6
Performance Features Price Esteem Service Safety
7.45
7.25
6.85
6.6
7.3
6.8
HYUNDAI SANTRO
6
6.2
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
8
Performance Features Price Esteem Service Safety
7.85
7
7.35
6.7
8
7.1
MARUTI ZEN
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finished with an average score of 7.33. In spite of being an old entrant in this segment, it has
maintained the charm in the corporate world.
There is no doubt that Zen would stand as the best chance for corporate purchases of cars.
BRAND IMAGE OF B & C SEGMENT CARS AMONG CORPORATES
METHODOLOGY: To measure the brand equity of Automobile companies three different
questions was designed. Each question was designed to sub consciously take out from the
respondent the brand image that he thinks of various Automobile companies.
The first question was based on relating the Automobile Company to a particular animal. The
respondent was given a choice of seven different animals namely Dog, Fox, Lion, Camel,
Elephant, Cheetah and Tortoise. Each animal represented a particular characteristic of a
company. Where lion was the leader, Cheetah was taken as a high growth company.
Similarly, tortoise was a company with low growth perspective. Respondents who marked dog
had high respect for service given by the company (Faithful) whereas people who marked
elephant thought the company to have a large product mix but were still not the leader. Fox
represented cunning and creative and camel represented a good company in only a particular
segment or type of cars. Needless to say, that this was not a thumb rule for people marking a
particular animal to a company; a second question was designed to clarify the respondents
perception of a particular company.
The second question was based on relating a company to a particular characteristic of human
beings. The respondent was given a choice of four different characteristics namely Old
person, Settled Person, Young and dynamic, and Eager to please. An old person was related
to a dying company or a company with a very low market share. A settled person represented
company with a good share in the market but at the same time with low prospects for its
market share to increase. Respondents marking young & dynamic held high image for the
models produced by the
Company. Similarly, eager to please represented good after sales service of the company.
In the third question, the respondent was asked that if given the chance to be a brand
ambassador of a particular company which one would he opt for. It was thus obvious that the
company marked by the respondent would have a high respect for the company.
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3] If you were asked to describe the Automobile Companies which of the following Animals
would you often choose? [A]
VEHICLE
ANIMAL
HONDA FIAT MARUTI HYUNDAI FORD TELCO
DOG
FOX
LION
CAMEL
ELEPHANT
CHEETAH
TORTOISE
WHICH
COMPANY IS
LIKE
HONDA FIAT MARUTI HYUNDAI FORD TELCO
OLD MAN
SETTLED
PERSON
YOUNG &
DYNAMIC
EAGER TO
PLEASE
BRAND EQUITY OF HONDA
A]
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B]
C] Percentage of People preferring to be Brand Ambassadors for Honda
motors: 20%.
REMARKS FOR BRAND EQUITY PERCEPTION OF HONDA MOTORS: Looking at the
above graphs it become clear that Honda Motors holds a high Brand equity perception in the
corporate world. More then 60% marked it as a lion or a cheetah thereby referring it as a
leader with high growth company.
Respondents were quick to mark it as a company, which comes out with young and dynamic
models. Others perceived the company as the best for providing after sales service. Also 20%
of the respondents preferred to be Brand Ambassadors for this company thereby solidifying
the conclusion that Honda has a high Brand Equity in the corporate world. Since it commands
a high goodwill in the corporate world, newer and less competitive models would, work more
easily compared to its rivals.
BRAND EQUITY OF FIAT PALIO:
15%
10%
45%
0%
10%
20% 0%
COMPANY-ANIMAL PERCEPTION
Dog
Fox
Lion
Camel
Elephant
Cheetah
Tortoise
0% 20%
55%
25%
HUMAN-COMPANY PERCEPTION
Old man
Settled Person
Young & Dynamic
Eager to please
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A]
B]
C]Percentage of People preferring to be Brand Ambassadors for FIAT: 15%
REMARKS ABOUT BRAND EQUITY PERCEPTION OF FIAT AUTOMOBILES.
FIAT has a low brand equity perception in this survey. Though there was a
mixed response from the respondents as far as describing the company to an
animal was concerned, but there were actually very few respondents marking
it as a lion or a cheetah. There were respondents who marked the company
as a tortoise indicating that they perceived the company as a low growth
company. A significant chunk of respondents marked it as an old company.Others gave the benefit of doubt by marking it as a settled person. In spite of
5%10%
5%
30%
20%
15%
15%
ANIMAL-COMPANY PERCEPTION
Dog
Fox
Lion
Camel
Elephant
Cheetah
Tortoise
45%
35%
10%10%
HUMAN-COMPANY PERCEPTION
Old man
Settled Person
Young & Dynamic
Eager to please
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a low brand equity perception people in the survey gave good scores to Palio;
an indication that Palios success is not because of FIAT but because it is an
excellent product.
However in spite of all this, there were a few positive aspects for FIAT. All the
existing customers had high respect for FIAT. 15% respondents preferred to
be brand ambassadors for FIAT and all of them owned a Palio. One
respondent even said After a long time FIAT seems to be in the business of
selling cars.
With the new Siena being launched and new marketing initiatives taken by the
company, things should change for FIAT in this front.
BRAND EQUITY OF MARUTI SUZUKI.
A]
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B]
C] Percentage of People preferring to be Brand Ambassadors for MARUTI
SUZUKI: 25%
REMARKS ABOUT BRAND EQUITY PERCEPTION OF MARUTI SUZUKI:
The survey brought out mixed response from the respondents as they were
unclear as to which animal should they mark this company to. This was
obvious since it has a large product mix in different categories; each modelperforming differently than the other. Whereas Maruti 800 and Maruti Zen
somewhat rule their respective segments, Maruti versa and Maruti Baleno
have been a clear flop.
Even when it came to perceiving the company as a particular characteristic of human beings,
a huge chunk of respondents was happy marking it as a settled person. However, 25% of the
respondents preferred to be brand ambassadors for Maruti Suzuki, indicating that there were
still many fans for this largest automobile manufacturer of India.
28%
19%19%
19%
5% 5% 5%
ANIMAL-COMPANY PERCEPTION
Dog
Fox
Lion
Camel
Elephant
Cheetah
Tortoise
10%
70%
15% 5%
HUMAN-COMPANY PERCEPTION
Old man
Settled Person
Young & Dynamic
Eager to please
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Overall, the company had a decent image in the corporate world. However, the company
would need more initiatives from its side to improve the Brand Equity of it.
BRAND EQUITY OF HYUNDAI MOTORS:
A]
B]
C] Percentage of People preferring to be Brand Ambassadors for Hyundai
Motors: 25%
REMARKS ABOUT BRAND EQUITY OF HYUNDAI MOTORS:
Hyundai Motors commanded a decent image in the corporate world.
Respondents indicated the good response of the company by marking it
young and dynamic. The remaining was happy with the service provided by
the company. This was the only company where not even a single respondent
indicated as an old company or a settled company. It is thus clear they
20%
25%
15%5%
10%
20%5%
ANIMAL-COMPANY PERCEPTION
Dog
Fox
Lion
Camel
Elephant
Cheetah
Tortoise
0%0%
62%
38%
HUMAN-COMPANY PERCEPTION
Old man
Settled Person
Young & Dynamic
Eager to please
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perceived the company to make cars that suite the likes of newer generations.
25% of the respondents preferred to be Brand Ambassadors for Hyundai
Motors.
People were aware that it was a newer company in the world scenario compared to its rivals
but it easily could give jolts to the top 7s automobile manufacturers of the world. Newer
models introduced by this company would be easily considered for the corporate purchases.
BRAND EQUITY OF TELCO MOTORS.
A]
B]
C] Percentage of People preferring to be brand Ambassadors for Telco motors: 0%
REMARKS ABOUT BRAND EQUITY OF TELCO:
20%
10%
10%5%
40%
5%10%
ANIMAL-COMPANY PERCEPTION
Dog
Fox
Lion
Camel
Elephant
Cheetah
Tortoise
40%
45%
10% 5%
HUMAN-COMPANY PERCEPTION
Old ManSettled Person
Young & dynamic
Eager to please
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Telco Motors had a poor perception in the corporate world. Though there was
a mixed response from the respondents as far as perceiving the company to
an animal was concerned, respondents indicated the poor perception by
marking it is an old person. None of the respondents preferred to be Brand
Ambassador for this company, which is a proof of poor perception of the
company.
CONCLUSIONS & RECOMMENDED FUTURE MARKETING PLAN
CONCLUSIONS
: It is thus clear from the survey that Brand Equity of FIAT & TELCO is
low as compared to its other competitors. Though Palio has brought a
new rhythm to the companys image, still much needs to be done by
the company to improve its Brand Equity. There are a few suggestions
on this account.
1. CONCENTRATION ON ITS EXISTING MODELS.
The Company should first concentrate on its existing models. Since
each model of the Company requires a huge investment where the
gestation period is very high. Although introduction of new models isgood for the company to remain ahead in the competition but the
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company should first take more measures to improve its financial
position. Considering the Indian economy and the current scenario of
recession the company should be careful in introducing further new
Models in the market for the time being. The Company should increase
the sales of its existing models efficient promotional schemes
2. INCREASE ITS DEALER BASE AND AUTHORISED SERVICE
STATIONS.
Fiat should increase its dealer base. Currently the Company has only
62 Dealers throughout India which is very low. Also the Company has
only 95 Authorized service stations in India. Today in the scenario of
increasing Competition; Service and ease of buying has become one of
the important distinctions which a customer considers while buying a
car. The Company can only achieve this if it increases its dealer base
and service stations.
3. SPONSOR HIGH PROFILE EVENTS:
The Company should actively organize and sponsor events where High
Profile People are involved. Say the Company could be the main
sponsorer in The BEST CEO AWARD or THE FILM FARE
AWARDS to name a few. This would further enhance the Brand image
of the company and since High Profile people would be involved this
could also help to increase sales and effectively introduce new models
in the market.
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4. INVOLVE ITSELF IN INCREASING SOCIETY WELFARE
The company should increase its commitment towards society to
increase public image. The company can involve itself for maintenance
of major highways and publicize this effectively. Owners of FIAT&
TELCO would as a result feel more proud to be in possession of a car
that helps the society in large. This would enhance the Brand Image.
QUESTIONNAIRE MEASURING THE CORPORATE PERCEPTION OF AUTOMOBILE
MANUFACTURERS IN INDIA.
RESPONDENT DETAILS
Name of the Person:-______________________________________AGE________
Company Name:-__________________________________Designation_____________
Phone Number:-_______________________
5] Do you own a Car A]Yes B]No [B]
Make_____________________Model________________________Year of
Purchase_______
1] On a Scale of 1-10, score the following Parameters: C SEGMENT
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Vehicle
Parameters
Ford
Ikon
Fiat Siena Hyundai
Accent
Maruti
Esteem
Performance
Features
Price
Esteem
Serviceability
Safety
Vehicle
Parameters
Tata
Indica
Fiat
Palio
Maruti
Zen
Hyundai
Santro
Performance
Features
Price
Esteem
Serviceability
Safety
3]If you were asked to describe the automobile Companies which of the following Animals
would you often choose? [A]
Vehicle
Animal
HONDA FIAT MARUTI HYUNDAI FORD TELCO
DOG
FOX
LION
CAMEL
ELEPHANT
CHEETAH
TORTOISE
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WHICH
COMPANY IS
LIKE
HONDA FIAT MARUTI HYUNDAI FORD TELCO
OLD MAN
SETTLED
PERSON
YOUNG &
DYNAMIC
EAGER TO
PLEASE
8] If you were given the chance to be a Brand Ambassador of an Automobile Company in B-
class Segment, Which Car company would you choose and why? [A]----------------------------------------------------------------------------------------------------------------------------
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