comparative study of maruti and hyundai
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MINOR PROJECT REPORTon COMPARATIVE STUDY OF MARKETING STRATEGIES OF TWO AUTOMOBILE COMPANIES
Prepared by:Avi NagpalB.B.A. (G) III Semester II ShiftEnrollment Number- 04721201711Date- ___________
FACULTY GUIDE:Mrs. Vandana
This is to certify that Report entitled COMPARATIVE STUDY OF MARKETING STRATEGIES OF TWO AUTOMOBILE COMPANIES which is submitted by AVI NAGPAL in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration to G.G.S.I.P University , Dwarka , is a record of the candidate own work carried out by him under my supervision. The matter embodied in this thesis is original and not been submitted for the award of any other degree.
Date: Supervisor ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual rather it is an amalgamation of the efforts, ideas and co-operation of anumber of entities.
I would like to thank GURU GOBIND SINGH INDRAPASTHA UNIVERSITY for giving an opportunity to work on avaluable project.
The completion of the project study that follows, seemed to bea distant goal had itnot beenforthe contributionofMrs. Vandanaforallowing meto work ona veryintrinsic part onCOMPARATIVE STUDY OF MARKETING STRATEGIES OF TWO AUTOMOBILE COMPANIES. I thank her for the ideasand basic concepts she delivered and shared with me, as they helped me a lot in accomplishing this project ofmine.
AVI NAGPALINDEXS. No.ParticularsPage no.
3Introduction Introduction Automobile Company Profiles Scope of Industry Objectives1
7Recommendations and Conclusions44
Comparative Study of Marketing Strategies of Two Automobile Companies
A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Its a written plan which combines product development, promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how they will be achieved within a stated timeframe. Marketing strategy determines the choice of target market segment, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Marketing strategies are dynamic and interactive. It may differ depending on the unique situation of the individual business.
On the Canvas of Indian Economy, Auto Industry occupies a prominent place. Automobile sector is one of the core of Indian Industry. Continuous economic liberalisation over the years by the Government of India has resulted in making India as one of the prime business destination for many global automotive players.
One of the largest industries in India, automotive industry has been witnessing impressive growth during the last two decades. Indian automobile industry has a mix of large domestic private players such as Tata, Mahindra, Bajaj, Ashok Leyland and major international players including GM, Ford, Toyota, Honda, Hyundai, etc. To remain in this competitive market on has to come up different ideas and strategies.Various Marketing Strategies enables a firm to expand business activities for market reputation, to satisfy human wants , to lead to specialisation and efficient performance of production function climaxing in economic stability.After liberalization automobile Industry is growing at very high rate and many new companies have also entered into market. With offering variety of cars in all segments for everyone. So it is important to know which company is providing us good quality cars at fair prices and providing better after sales services and how they are trying to reach customers. The most obvious objective marketers have for promotional activities is to convince customers to make a decision that benefits the marketer (of course the marketer believes the decision will also benefit the customer). For most for-profit marketers this means getting customers to buy an organizations product and, in most cases, to remain a loyal long-term customer. However, marketers must understand that getting customers to commit to a decision, such as a purchase decision, is only achievable when a customer is ready to make the decision.
In early 1980s Indian Govt decided to produce a small car, which would be within buying reach of Indian middle class. The obvious place to shop for technology was Japan, which had developed world class capabilities in small cars by that time.It was not Toyota, or Nissan, or Honda ,three largest player in Japan, but Suzuki, a much smaller company with strong capcabilities in making small cars. Suzuki grabbed the opportunity with both hands and formed a joint venture with govt. called Maruti Udyog.
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for about two decades. Its manufacturing plant, located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million vehicles.
Maruti rolled out its 1st car, Maruti 800 with 800cc engine in December 1983. This model targeted at masses and was launched as Peoples car. In early 2003, Maruti Udyog, a joint venture between Suzuki and Indian Govt. dominated Indias automobile market with 54% market share and with annual production capacity of 5lac cars. The company dominated Indian Small car market with a share of 100% in A segment, 36% in B segment and 86% overall.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.
In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen and Esteem, completely designed and styled in-house. Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire generation of Indian middle class, is widely acknowledged. Its emotional connect with the customer continues
Maruti tops customer satisfaction again for 8th year in a row according to the J.D. Power Asia Pacific. India Customer Satisfaction Index Study. The company has also ranked highest in India Sales Satisfaction Study.
In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media messages and a state-of-the art driving training and research institute that it manages for the Delhi Government.The company's service businesses including sale and purchase of pre owned cars (True Value), lease and fleet management service for corporate (N2N), Maruti Insurance and Maruti Finance are now fully operational.
HYUNDAI MOTORS Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest car manufacturer and the largest passenger car exporter from India. HMIL presently markets 54 variants of passenger cars across segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.
Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2008, an increase of 49.6 percent over CY 2007. In the domestic market it clocked a growth of 22.4 percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports accounting for 243,931 units in 2008.
HMIL's manufacturing plant is located near Chennai which has advanced production quality and testing capabilities in the country. Inorder to provide the Indian customer with global technology, HMIL started 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. Apart from expansion of production capacity, HMIL currently has 260 strong dealer network across India.
The production management processes at Hyundai Motor India are overlaid with an organization-wide implementation of manufacturing best practices like Just-in-time inventory management, Kaizen, TPM and TQM, that help us in making the world's best cars, right here in India.
Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive Group which was ranked as the worlds fifth-largest automaker in 2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over 75,000 people worldwide, Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.
Hyundai Motor Company, South Korea, the parent of HMI, has been doing considerable work on sustainable Environment Management. The company has a well defined framework in place for developing products that reduce pollutant emissions and processes for preservation of natural resources and energy along