INTRODUCTION

INTRODUCTION1.1PROFILE OF THE INDUSTRYBIRTH OF CARSThe birth of the car as we know it today occurred over a period of years. It was only in 1885 that the first real car rolled down on to the streets. The earlier attempts, though successful, were steam powered road-vehicles.

The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain speeds of upto 6 kms/hour. In 1771 he again designed another steam-driven engine which ran so fast that it rammed into a wall, recording the worlds first accident. In 1807 Franois Isaac de Rivaz designed the first internal combustion engine. This was subsequently used by him to develop the worlds first vehicle to run on such an engine, one that used a mixture of hydrogen and oxygen to generate energy.

This spawned the birth of a number of designs based on the internal combustion engine in the early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again built an experimental vehicle driven by his gas-engine, which ran at a speed of 3 kms/hour. These cars became popular and by 1865 could be frequently espied on the roads.

The next major leap forward occurred in 1885 when the four stroke engine was devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they fell apart. Daimler created his own engines which he used both for cars and for the first four wheel horseless carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced tri-cycle which proved to be the first true car. This car first saw the light of the day in 1886.

The season of experiments continued across the seas in the United States where Henry ford began work on a horseless carriage in 1890. He went several steps forward and in 1896, completed his first car, the quadricycle in 1896. This was an automobile powered by a two cylinder gasoline engine. The ford motor company was launched in 1903 and in 1908 he catapulted his vehicle, model t ford to the pinnacle of fame. Continuing with his innovations, he produced this model on a moving assembly line, thus introducing the modern mass production techniques of the automobile industry.

The modern car, therefore comes from a long list of venerated ancestors, and its lineage will, hopefully grow longer as we progress!

With the invention of the wheel in 4000 B.C., mans journey on the road of mechanized transport had begun. Since then he continually sought to devise an automated, labour saving machine to replace the horse. Innumerable attempts reached conclusion in the early 1760s with the building of the first steam driven tractor by a French captain, Nicolas Jacob Cugnot. It was however left to Karl Benz and Gottlieb Damlier to produce the first vehicles powered by the internal combustion engine in 1885. It was then that the petrol engine was introduced, which made the car a practical and safe proposition. The cars in this period were more like the cars on our roads today.

With cars came the era of speed. The first ever land-speed record was established about a 100 years back, in 1898. Count Gaston de Chasseloup-Laubat of France drove an electric car (in Acheres near Paris) at a speed of 39.24 miles per hour. This flagged off the era of wheels racing, which lasted till 1964, after which jet and rocket -propelled vehicles were allowed. Then onwards, it has been one big journey...on the roads.INDUSTRY AS WHOLE

Post 1991, this country has witnessed unprecedented all round development due to liberalization. It has witnessed a flood of foreign companies who have set up their operations. The monopoly, earlier enjoyed by Indian companies has been offset. The entire marketing scenario has changed from being a sellers market to a buyers market. It is necessary for all companies to understand the needs of their customers lest they may be out of business. Customer satisfaction and retention is the norm in this dog-eat-dog market competition and cutthroat competition.

This research tries to give an insight into the present market scenario of passenger cars , pan India taking into consideration the dealers as well as consumers of HYUNDAI MOTORS INDIA Limited vis--vis its major competitors. This research consists of the database, which was collected during the survey and also the findings and analysis of the survey conducted during the research.

The research approach consists of primary data collected by survey research method and secondary data collected from various Internet sites, product catalogues and business journals. Direct interaction with the concerned people including interview and questionnaire are the instruments employed during the research.

The research aims at deciphering all the underlying factors considered important by customers regarding this segment and a comparison of various companies on those factors so as to provide logical recommendations which would prove useful to HYUNDAI MOTORS INDIA LIMITED to maintain its competitive advantage in this segment in times to come.

THE REQUIRED THESIS BASED UPON THE MARKETING STRATEGY OF HYUNDAI MOTORS INDIA LIMITED .THE THESIS BASED UPON BRAND AND PRODUCT POSITIOING OF THE HYUNDAI MOTORS IN INDIA.THE PRODUCT QUALITY, THE BRAND CONSUMPTION IN COUNTRY Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 16 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. The Hyundai Verna has bagged some of the most prestigious awards starting with the Overdrive Car Of the Year 2007, CNBC-TV 18 Auto car Best Value For Money Car 2007 and Performance Car of the Year 2007 from Business Standard MotoringINDIAN AUTOMOBILE INDUSTRY

India has been the scene of some of the most frenetic deal- making, big expansion announcements, and new car launches in the global auto industry. Consider that in the last 18 months alone General Motors, Fiat, Honda, Nissan, and Hyundai have announced Indian investments valued at roughly $1.5 billion. Recent visits by industry bigwigs such as Fiat Chairman Luca Cordero di Montezemolo, Renault-Nissan alliance Chief Executive Carlos Ghosn, and GM boss G. Richard Wagoner, Jr., who arrived in New Delhi on April 16 to help launch the company's Chevrolet Sn early April, Ghosn was in India to inaugurate a plant in Nashik jointly run by Renault and Indian carmaker Mahindra & Mahindra that will produce an economy car called the Logan. The base model will cost $9,700, but Ghosn also hopes to launch an ultra-cheap model in India -- that will retail for about $3,000 -- later in the decade. Park locally underscores the new focus on India's high-speed car market.

Right now, India's entire industry -- local producers and transplants -- collectively manufacture about 1.4 million vehicles a year. That's expected to double by 2008, and if it does, India will surpass Britain and Canada in total car production. However, it still will be light years behind China, which is on track to hit 10 million or so in 2007.

And India's growth dynamics look robust. It is home to a young population, and has rising income levels, an underserved rural market, and an economy galloping along at 9%-plus growth rates. Duties on small cars fell from 24% to 16% in 2006, though taxes remain somewhat high compared to China. The government hopes to see India auto sales jump from last year's $34 billion to $145 billion in 2016. If they do, the domestic auto industry could represent about 10% of India's gross domestic product. Gathering small-car making expertise in India is key for automakers both to tap a thriving market for economy cars -- and also to export that know-how to other markets. By 2012, the market for vehicles priced under $10,000 is likely to reach 18 million cars, or a fifth of world auto sales, according to Roland Berger Strategy Consultants. That's up from 12 million today.

India also boasts a cheap, but high-quality labor force with considerable engineering and manufacturing skills -- and the country is starting to build up big auto components and engineering and design outsourcing sector that is attractive for international players. The India auto parts business is expected to more than triple in annual revenues from $12 billion to $40 billion by 2014.

INDUSTRY ANALYSIS:-With 11 players in passenger car segment, the total installed capacity is of the order of over a million vehicles. More than 15% of the total capacity remained unutilized in 2003-04. Two players, namely, PAL Peugeot and Premier Auto, among the older Indian entities, exited the industry towards the end of 1999-00. Daewoo plant was closed, General Motors and Tata Motors are involved in taking over some operations.

The scale of operations of Indian car plants is among the lowest in the world, rendering them uneconomic. The average capacity of an Indian car plant is 40,000 units a year, as against 250,000 in Japan and the US; 125,000 in Brazil and 175,000 in South Korea. Volumes of 100,000 to 150,000 are considered viable. However, there are units in India with capacities ranging from 9,000 to 30,000 units a year.

Lead Players

CompanyIndian PartnerCollaboratorForeign EquityYear of IncorporationShare (%)

Maruti UdyogGOISuzuki Motor Company, Japan100%198250.4%

Hyundai MotorNoneHyundai Motor Company, Korea100%199619.5%

TelcoTata GroupNoneNil194514.5%

Hindustan MotorsCK Birla GroupNone100%1940s3.4%

Ford IndiaM&M LtdFord Motor Company84.11%19952.5%

Fiat IndiaNoneFiat Auto SPA, Italy100%19970.9%

Honda Sie1Siel LimitedHonda Motor Company, Japan99%19955.0%

General MotorsNoneGeneral Motors Corporation, USA100%19951.4%

Daimler Chry StarNoneDiamler Chrysler AG100%19950.2%

Skoda IndiaNoneVolkswagen Group20011.0%

Toyota KirloskarKirloskar GroupToyota Motor Corporation, Japan88.86%19971.2%

Total investment by the car companies is estimated at around Rs 130 bn with related component makers chipping in another Rs 40 to 50 bn. At the existing volumes, all car companies, except Maruti Udyog, will take two to five years to move beyond sustainable break-even volumes.

The Indian industry now has the presence of global players like General Motors, Ford, Suzuki, Toyota, Mitsubishi, Honda, Fiat, Hyundai, Mercedes and Skoda. MNCs are widening their product portfolio, which will further intensify competition. This also marks the next phase of the Indian auto industry after the sector was opened up.

New players, such as Skoda and Toyota have lined up the market with Octavia (from Skoda) and Corolla (from Toyota), Honda and Hyundai have come a long way through City, Accord, Sonata and so on as their prized offerings. BMW is setting up an assembly plant in Andhra Pradesh.

The car sales in 2003-04 were estimated at over 821,500 vehicles, a 34.3% increase on the preceding year with car sales at over 611,750 units. The production of passenger cars in 2003-04 increased to 781,764 units realizing a growth of 40% over the preceding year.

It is obvious that the market was overwhelmingly skewed in favour of low-end (priced) cars. The non-linear segmentation is a reflection of the fewer models in the next price range.

Individual buyers, mostly small entrepreneurs, have outnumbered companies to form a significant chunk of the car buying population. Most of the car buyers come from backgrounds such as software and service companies. Individual buyers constitute roughly 70% of the total demand today, overtaking corporate buyers, who traditionally represented around 60% of total demand some years back. In the case of cars like Hyundai's Santro, as many as 95% of its clientele is represented by individual buyers.

Leading brands of cars in India now include: Maruti 800, Esteem, Omni, Zen, Baleno, Alto Wagon R, Opel Astra, Opel Corsa, Mercedez, City, Accent, Santro, Indica, Fiat Palio, Sienna, Lancer, Ford Ikon. Lately, while Hyundai entered with Sonata, Honda came up with Accord. Ford has been contemplating bringing in Mondeo, while GM's Swing made some healthy waves in its segment. Skoda has introduced its Octavia, and may follow with Superb to strengthen its presence. Reva Electric Car Co launched the base version of its Reva electric car in Bangalore and Goa. Lately, GM has created quite a ripple with its Chevrolet based Optra.

Except for Maruti Udyog JV with Suzuki of Japan and Hindustan Motors tie-up with Mitsubishi also from Japan, all the earlier collaborations have been diluted and converted into fully-owned subsidiaries of the global players like GM, Ford, Hyundai, Daewoo, Daimler Chrysler. Among the operational alliances is the one between DCM group and Honda in Honda Siel Motors. The new entrants' forays like Skoda are again entering as wholly-owned subsidiaries.

Based on the long term optimism, new and established entrants in this sector are introducing new models. As the number of players multiply, the Indian consumer will have a plenty of variety and choice in the mid-size and small segment. Although small car category continues to be dominated by Maruti 800 and Alto, Santro and . Indica, the segment would offer the consumer the choice of pick and choose.

Maruti Udyog is in talks with various diesel engine manufacturers to set up a diesel engine manufacturing base in India. Maruti is expected to outsource its entire requirement of diesel engines from the proposed local unit. Peugeot, which supplies diesel engines to Maruti Udyog for compact car Zen and mid-size sedan, Esteem, is one of the companies with which Maruti is negotiating, another being Fiat.

The sudden and simultaneous induction of new cars in the segment exposed the Indian market to severe competition, especially to the well entrenched Maruti 800 and Zen. Newer technologies have been displayed by these entrants. These are aimed at improved fuel economies and horse-power and at the same time overcoming stringent emission norms of Western Europe. Other hi-tech features include multi-point fuel injection (MPFI) system, collapsible steering, independent suspensions for the wheels, side impact bars, roof stiffners, child-proof locks, disc type front brakes and several other features hitherto unknown.

In the changing automobile scenario, the market demand is composed of replacement demand, new entrants to the market, graduation of two-wheeler owners to the car market and shift of the small car owners to the medium and premium car segments.

The structure of the market by product variation is also witnessing a total metamorphosis. The erstwhile models have been of higher engine capacity but are relatively low priced. Presently, the bulk of the demand is for engine capacity below 1000 cc. The middle segment, which is more price-oriented, is large in terms of value but the market in quantum is much too small. As indicated, the mid-priced premium segment is witnessing a significant upsurge.

MULTI-UTILITY VEHICLES:-The MUV segment consists of vehicles that are suited both for urban and rural areas. In rural areas where the roads are bad, MUVs can be used as goods carriers and for public transportation. In terms of the overall share of the vehicle market, the importance of MUVs is still low as 2.2%. Traditionally, more than 70% of the vehicles sold by Mahindra & Mahindra (M&M), the main player in this segment, went to tour operators and customers who bought it for business purposes. Even the balance 30% picked up are primarily by buyers from small towns and rural areas, who wanted a vehicle that could carry goods.

However, during the past couple of years, there has been a qualitative shift in demand profile of this category. The introduction of the Toyota Qualis changed consumer perceptions about this category. In urban areas, Qualis has tapped the latent demand for a large family car, thus blurring the distinction between the passenger cars and MUVs. The changing consumer perception has been further reinforced by instant success of Scorpio launched by M&M.. In a bid to tap this growing market, MUL has also launched its first MUV, Versa. With other players such as Hindustan Motors and Ford planning to launch the products in this segment, competition is expected to intensifyMUV's: Market Shares

CompanyShare (%)

Maruti Udyog2%

Telco21%

Hindustan Motors1%

Toyota Kirloskar26%

Mahindra & Mahindra46%

Bajaj Tempo4%

Source: www.hyundia.com. Environmental Issues: -Emission control is important when it comes to tackling pollution levels on city roads. In the recent past, the issue has become very important for the domestic automobile industry. Tracing back to where it all started, we find that the first emission norms were introduced for petrol vehicles in 1991 and for diesel vehicles in 1992.

From April 1995, fitting catalytic converters was made mandatory in new petrol driven passenger cars sold in the four metros of Delhi, Calcutta, Mumbai and Chennai. For this to happen, petrol pumps supplying unleaded petrol were opened in these cities.

1.2 PROFILE OF THE COMPANY Hyundai Motor

Headquarters: Seoul, Republic of Korea (231, Yangjae-Dong, Seocho-Gu)

Industry Sector: Manufacturing

Major Product: Automobiles

Production: 1,677,818 units per year (CKD Excluded)

Sales: 27,472 billion Korean Won*

Assets: 24,700 billion Korean Won

Net Income: 1,804 billion Korean Won

Chairman & CEO: Mong-koo Chung

Date of Establishment: Dec. 29, 1967

* Production: production total from domestic (Ulsan/Asan/Jeonju) and overseas manufacturing plants

(India/Turkey/China) in 2004

* Sales, Assets and Net income: Hyundai Motors Independent Financial Standard for fiscal year 2004

*1 US $ = 980 Korean Won.

Hyundai Motor India Limited (HMIL) *

Wholly owned subsidiary of Hyundai Motor Company, South Korea

Industry Sector: Manufacturing

Major Product: Automobiles

Production Capacity: 280,000 units per annum

Total Sales: 252,851 units in 2005

Domestic Sales: 1,56,291 units in 2005

Export Sales: 96,560 units in 2005

Net Income: 432,282 million Korean Won (414143 thousand US$)

Chairman & CEO: Mong-koo Chung

Year of Establishment: 1996

* Company History is given in Exhibit

(Business Purpose) (Refer for detailed Mission in Exhibit)Mission of the Parent company "Hyundai Motor Company" The relevant business purposes of the Company are as follows:

To manufacture and sell all kinds of vehicles and component parts thereof.

To manufacture and sell special purpose vehicles and component parts thereof.

To engage in the export and import business.

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 30 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment.

Established in 1967, Hyundai Motor Co. has grown into the Hyundai Kia Automotive Group which includes over two dozen auto-related subsidiaries and affiliates. Employing over 57,000 people worldwide, Hyundai Motor posted US$26.1 billion in sales in 2004 (on a non-consolidated basis). Hyundai Motor vehicles are sold in 193 countries through some 5000 dealerships and showrooms. Hyundai Motor Co. is a sponsor of the 2006 FIFA Germany World Cup.

Hyundai Motor India has said it will begin production at its second plant in the country on October 15, 2007, where it aims to reach a capacity of 300,000 units by 2008.

Hyundai India aims to export at least 200,000 cars next year. The carmaker, which exports Santro and Accent cars made at its factory near Chennai in southern India to regions such as Europe, exported 115,000 cars in 2006 and plans to export 350,000 cars in 2009.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units. Last year, HMIL had clocked in 147,636 units from January to June. Compared to last year (06), the sales grew by 9.3% to 161,296 units for the same period (Jan- June 07). Out of this 100,925 units are sold in the domestic market while 60,371 units are exported. Last year the domestic market had accounted for 91,273 units and the exports stood at 56,363 units The export registered a growth of 7.1 % to while the domestic market volume has increased by almost 11%.

Commenting on the sales this month Arvind Saxena, VP, Marketing and Sales said In spite of hike in interest rates, Hyundai has still managed to grow in terms of volumes. We are sure the next few months will see stronger retail as we overcome our capacity constraints with the new plant starting operations later this year.

The segment-wise cumulative sales in the month of June 2007 are as follows: A1 Segment 23,558 units; A2 Segment 3,983 units; A3 Segment 24 units; A4 Segment 67 units; and SUV Segment 21 units. At present HMIL have 167 in January 2007, dealers all over India at present stage

Hyundai today enjoys a market share of around 10% and is looking at the doubling that figure. Given the Indian market's response to the Santro, the company seems to be well on course.... Best customer service

Best technology

Best quality products

Best value for people.

All over HMIL launched the second nation wide free car care clinic campaign, offering our loyal customers free check-ups for keeping their vehicles in best of condition. Hyundai involved about 310 Hyundai dealers workshops across the country.

Products PORTFOLIO

SegmentNameVariants Price

BSantroXK(Non-ac, AC),XL,AT,XO2,82,973 to 3,92,974

B+GetzGLE, GVS, GLS, GLX4,21,000 to 5,18,518

CAccentGLE, GLE 1.6L, Viva, Viva CRDi, CRDi5,29,000 to 7,14,714

DElantraGT, GLS, CRDi8,53,793

to 10,53,800

ESonata2.4 M/T, 2.4 A/T(both are in fabric/ leather)1,369,000 to

1,459,000

SUVTerracanGL2,059,151

TucsonTucson14,62,999

Santro:-Modeled on the Hyundai Atos, the Mercedes A140 and Suzuki's Wagon R, and then customized to Indian tastes, the Santro takes the best of all the cars viz. the driveability of the Atos, the safety & design of the Mercedes A140, and roominess of the Wagon R.

It claimed to be the leader of its segment since its launch till mid 2004. But in February 2005, WagonR's sales were higher than the Santro's and in March the Alto stole, too, the Santro's thunder. The fight for market share goes on with the launch of new variants and models in the B segment. But on an average, Santro stands to be the market leader.

It is a mid-size segment car and the pricing strategy varies over the variants being offered. The XK (non- ac) starts at 2.82 lakhs and the costliest variant is around 3.92 lakhs. It competes with Marutis Zen and Alto, Tatas Indica and Fiats Palio.

Getz:-In response to consumers demand for something bigger than B segment cars, yet smaller than those in the C segment, car manufacturers lined up a new range of variants. This segment is the B+ segment.

The Getz is one of the most well designed and graceful looking cars from the Korean Chaebol, especially since the company has tended to conceive cars that have a "streak of queer beauty" about them.

Its chief competitors are Ford Fusion and Chevrolet Spark. Besides these two models, Fiats Palio and Petra, Opels Sail & Corsa, Tatas Indigo and Fords Ikon Flair also face competition from Getz.

As every model of Hyundai, Getz is also priced premium but at a killer price amongst its strategic group. Its variants cost from 4.2 lakhs to 5.2 lakhs.

Accent:-In the mid-size segment, the Accent leads with a market share of 27 per cent, pitted against the likes of Ikon, Honda City, Corsa, Esteem and the Lancer.

Accent GLS has been positioned as the car that provides power and performance, while Accent CRDi targets those consumers who are conscious about the cost per kilometer. The CRDi variant has proven to be a deadly weapon in performance and against competition.

The competitors are Fords Ikon, Hondas Honda City, Marutis Esteem, Opels Corsa, Mitsubishi Lancer and their variants. Accent stood out as the market leader in its segment most of the time. The pricing has been hiked at times owing to the rising costs and yet the price varies over 5.29 to 7.2 lakhs.

Elantra:- Aggression is writ clearly across the Elantra's face. This is typically the kind of design that the young car buyer will identify with. If the Hyundai Elantra's design does not appeal to the stiff upper-lip gentleman, the features-to-value equation surely will.

Hyundai has packed the Elantra with electronic gadgetry and loads of active and passive safety features that the competition has not thought of offering in their cars. The cars that are competition for the Elantra like the Toyota Corolla, the Skoda Octavia,, Chevrolet Optra and the Mitsubishi Lancer.

Positioning and pricing have been the key factors for the success of Hyundai's products. In the case of the Elantra, too, Hyundai has positioned it squarely in the cusp between the C and D segments. Pricing wise it is in the higher end of the C segment, at the same time it is as feature rich as the average D segment sedan.

Priced at Rs 8.5 lakh for the lower trim GT variant and going up to Rs 10.5 lakh for the CRDi variant, the Elantra is good value for money. The competition will have a tough time beating this combination of features at this price.

Sonata:-The country's luxury car market constitutes one per cent of the total passenger car and MUV market. The section of the population it targets is hence extremely limited. So Hyundai offers Sonata as a brand by associating the car with royalty and high-class society. It offers all the features a luxury car can demand and also establishes itself with a killer low price and decent looks along with large periods of warranty.

Its chief competitors are Ford Mondeo, Toyota Camry, Honda Accord, Skoda Octavia, Benz c class, Toyota Corolla, Opel Vectra. The variants of Sonata have been placed in the range of 13.59 to 14.69 lakhs. The huge advantage of the pricing strategy Hyundai employed is in terms of the warranty period and thus the car has been targeted to cut through profits of the other models in this segment.

Terracan:-Hyundais most powerful SUV, The Terracan projects a strong masculine identity that evokes Hyundais strategic goal to challenge other entrants in the medium-heavy 4WD market with a vehicle that weds performance with comfort, refinement and fresh styling. Terracans on-road ride comfort, refinement and ease of driving have been honed as major Terracan strengths.

The overall look of the SUV is one of a simple, elegantly straight-edged body, personalized by several highly styled elements.

The chief competitors for it are Mitsubishis Pajero, Hondas CRV, Grand Vitara, Chevrolet Forrester, Fords Endeavor. Its GL variant costs around 20.5 lakhs.

The pricing strategy targets a premium customer who values style and sports utility as a lifestyle statement. Though an element of value for money exists, style and aggression drive the flow. The car will be positioned as a value product targeted at the young, demanding male.

Tucson:-We have had many good SUVs, but all of them have been petrol-driven; a diesel-engine, `right-size' luxury SUV was not available. This led to the genesis of Tucson. The Tucson boasts of a sedan-like monocoque construction. It holds features fit for a SUV ride and a better performance with respect to diesel variants in general.

The macho machine comes with a long warranty period. Hyundai made an effort to provide a lot of premium features without bursting a buyer's budget. It costs around 15 lakhs but though a value for money proposition has been offered, the model fails to cater true luxury car features. Hence the pricing seems to be of concern.

Services Offered:- Authorized Service centres.

Emergency Road Service.

The companys greater focus on the quality of its after-sales service made Hyundai provide these services, with servicing available at their own authorized centers and other service points. Hyundai reflects its image of value for money in the service it offers. In order to deliver the highest value through their products they have set up more than 70 dealer workshops equipped with latest technology machinery and international quality press, body and paint shops, across the country.

There are three company-owned outlets called 'Hyundai Motor Plaza' that will serve as model dealer showrooms and service workshops for the customer. Customer Care Centres which have specially equipped Santros that can provide emergency service to all our customers anytime, anywhere have been provided.

Distribution structure for Hyundai Motors

sales structure

Target Market Structure:-Market Segmentation by Category

Premium and Luxury0.5%

Executive Segment1.7%

Mid-size15.9%

MUVs2.2%

Size and compact79.7%

Market Segmentation by Geography

SegmentShare(%)

North43

East8

West26

South23

Market Segmentation by Price of Car

Over Rs 1.0 mn0.8

Rs 501,000 to Rs 1.0 mn3.2

Rs 301,000 to Rs 500,00049

Under Rs 300,00047

This table illustrates the geographical and price wise segmentation of the passenger cars market and the percentage share they account to. Passenger cars are mostly aimed at urban areas, though a shift to focus on the semi-urban and rural areas is becoming evident. MUVs stand to cater to the need of semi-urban areas more precisely owing to the space and performance features MUVs offer.

In general, car has always been a status symbol and a convenient & safe transport utility. Thus the passenger cars are targeted towards income groups which can afford and mindsets which demand a statement of style. HMIL is targeting customers in the 25-50 age groups. Hyundai has leveraged on this by providing value for money products with compact, stylish designs.

Customer Profile & Competitors:- NameTarget Customer ProfileCompetitors

Santro (B)Budget constrained & budget conscious buyer; parking space conscious;

a small family; middle income groups.Maruti Zen, Alto, Tata Indica and Fiat Palio.

Getz (B+)Buyers who needs more Power, an affordable price, medium size and trendy look; buyers looking for a good value for money proposition.

For those who lead their own life and create their own benchmarks. Fiat Palio and Petra, Opel Sail & Corsa, Tata Indigo and Ford Ikon Flair

Accent (C)Demands power and performance; is conscious about the cost per kilometer. Requires a medium size at reasonable prices with a blend of fuel efficiency, power and stylish look.Ford Ikon, Honda Honda City, Maruti Esteem, Opel Corsa, Mitsubishi Lancer

Elantra (D)High income groups who value performance and command a luxurious style of living.Toyota Corolla, Skoda Octavia, Chevrolet Optra and Mitsubishi Lancer.

Sonata (E)High income and elegant class. Demand a status symbol of luxury which conveys the stylish living the owners lead. Ford Mondeo, Toyota Camry, Honda Accord, Skoda Octavia, Benz C class, Toyota Corolla, Opel Vectra

Terracan (SUV)a premium customer who values style and sports utility as a lifestyle statement. young, demanding male; high income group.Mitsubishi Pajero, Honda CRV, Grand Vitara, Ford Endeavour, Chevrolet Forrester

Tucson (SUV)A merge of luxury, comfort, compact proportions and fuel efficiency of sedans with the handling, build and feel of a sport utility vehicle (SUV) targets at a customer who demands such a crossover with a good amount of inner space

Distribution:-HMIL has 4 regional offices in India, at Delhi, Mumbai, Chennai and Kolkata. HMILs fully integrated state-of-the-art manufacturing plant is located near Chennai which boasts some of the most advanced production, quality and testing capabilities in the country.

In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant. Hyundai Motor India Ltd (HMIL) has now planned to increase its production to 600,000 units per year by 2007 from 400,000 units as planned earlier. The announcement was made on Feb10,2006 by Hyundai Motor Companys (HMC) Chairman Mr. Chung Mong-Koo during his visit to India.

The existing plant capacity is 280,000 units per annum which will be increased to 300,000 units. The second plant will add another 300,000 units, which is under construction and expected to be completed by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL plans to expand its dealer network, which will be increased from 157 to 200 in 2006.And HMILs service network will be expanded to over 1,000 in 2006.

The details of the locations of the - Regional offices

Dealers

Authorized Service Centres

HSCP (Hyundai Service Center point) are in the exhibits.

1.3 COMPETITION ANALYSIS Comparison on the market share, export-prospects of Indian Automobile Sector:-Passengers Vehicles (PVS) From April-November 05-06 From April-November 06-07 Total Market Share (in %) The Net Change between the period (in %) Total number of exports in April 06-07

Maruti Udyog 2,69360 2,91,182 52.2 8.1 23,043

Hyundai Motors India Ltd. 89,075 1,07, 066 19.2 20.2 68,374

Tata Motors 95,402 24,348 16.6 -2.7 12,105

Honda Siel Cars India Ltd. 23,186 24,348 4.4 5.1 31

Ford India Pvt. Ltd 15,026 10,512 1.9 -30% 9,928

Maruti udyogFrom its inception Maruti has been in only in one line of business, car manufacturing. The company manufactures passenger cars at its factory in Gurgaon, Haryana. Maruti enjoyed a dream run in the pre liberalization era enjoying a market share of over 80%. But with increased competition in the car market its market share has currently dropped below 60%. Its first product, Maruti 800 was launched in 1983. The car was launched as a "peoples car" with a price tag of Rs40, 000. This changed the industry's profile dramatically. Maruti 800 was well accepted by middle income families in the country and its sales increased from 1,200 units in FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down to 189,184 units, due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. In 1985, the all-terrain vehicle Gypsy was launched. The Maruti 1000 was launched in 1990 and the Zen in 1993. To counter increasing competition the company has launched a series of new models and plans to launch one new model every year. The present models include the 800cc small car, Omni, Esteem, Zen, Alto, Wagon R, Gypsy, Baleno and VersaHondaHonda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture HONDA passenger cars in India. The company is ISO 9002 & ISO 14001 certified. The plant was set up in 1997 with an investment of Rs. 450 crores (paid up capital Rs. 360 crore) and in 2005 the investment stood at Rs. 800 crores. Their product range in India includes the Honda City ZX, Accord and CR-V. City ZX is today recognized as one of the most successful car brands in the country. It is strongly associated with durability, reliability, quality and fuel-efficiency. City ZX, the latest version of the City, including the VTEC version, was introduced on October 5, offering enhanced power and style.

In addition to the City ZX, Accord and CR-V models made them a premium segment leader in the Indian passenger car industry.

Honda is operating only in segment D cars i.e. the premium segment.

Tata MotorsTata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 crores (USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. Training to the employees is provided by the vendors only. Showrooms on their part are providing incentives to the car sales executive for promoting accessory. They also deal in only genuine accessory approved by Tata. They provide door-step facility to the customer when it is required.Toyota

Toyota Genuine Accessories are manufactured to the exact specifications of each individual Toyota model. This means they fit precisely and conform to every contour of the vehicle. Toyota Genuine Accessories are designed, tested and manufactured to strict Toyota global standards. This quality and reliability is supported with up to a 3 year, 100,000km warranty.

LATEST EVENTS DONE BY HMIL Hyundai Motor to Roll out CNG SantroHyundai Motor India (HMIL) plans to introduce a factory-fitted CNG kit version of its popular passenger car Santro with the option of petrol as a second fuel.

Hyundai will roll out the CNG version of the Santro from it's existing plant in Chennai by the end of 2007 or early 2008.

Hyundai Motor Co to make 300,000 hybrid cars a year-

Carmaker Hyundai Motor Co plans to make 300,000 gasoline-electric or diesel-electric powered vehicles by 2015 as demand for more fuel-efficient cars is rising.

Hyundai sales up 14.1 per cent in Sept-

Hyundai Motor India achieved a growth of 14.1 per cent in the domestic market in September 2006, selling 16,415 vehicles during the month. Hyundai's cumulative sales during the month were 26,492 units a growth of 11.5 per cent, over September '05.

Overseas sales in September stood at 10,077 units, a growth of 7.5 per cent over the same month in the previous year. Hyundai Verna, launched in the last week of September 2006, has sold 2,043 units in the first five days. The segment-wise cumulative sales in September 2006 are: A2 segment: 22,409 units, A3 segment: 3,887 units, A4 segment: 147 units, A5 segment: 22 units, SUV segment: 27 units.

Hyundai Motor betters its brand valueHyundai Motor Company has reported a 17-per cent appreciation in its brand value, emerging 75th in the latest survey of world's leading brands, jointly conducted by branding consultancy firm Interbrand and the Business Week magazine.

The Korean automaker Hyundai Motor raked 84th in its debut appearance on the Best Global Brands list last year.

The 17-per cent appreciation in brand value of Hyundai makes it the fastest growing automotive brand and places it among the top five biggest gainers in brand value. Hyundai, with an estimated brand value of $4.1 billion, has also way ahead of its competitors. Hyundai has been making continuous improvements in the quality of its vehicles, which in turn has fueled a steady increase in sales and customer confidence in the brand. In fact, Hyundai's sales have been built on a balanced management of its brand value and marketing. The group sold 3.7 million vehicles in 2005 and ranked the sixth largest automotive manufacturer in the world. Hyundai includes over two dozen auto-related subsidiaries and affiliates. Hyundai Motor, which employs over 68,000 people worldwide, posted $27.38 billion sales in 2005. Its vehicles are sold in 193 countries through some 5,000 dealerships and showrooms.

Hyundai ramping up its dealership network

With Hyundai Motor India Ltd. expecting its second plant expected to go into operation soon; the company is now looking to speedily ramp up its dealer network to push sales for the increased production.

HMIL reportedly had 167 dealers in January 2007, and plans to expand its network to 250 by December.

New dealerships are likely to follow the proven format, with sales, services and spares facilities housed together.

The company has been witnessing rather flat sales over the past few months, though it has a healthy stable of cars, which include the Getz, the Santro, and the Verna. The lacklustre sales are reportedly attributed by the company to production capacity constraints, as a result of which domestic sales suffered, and even export orders saw some backlogs.

Hyundai October sales up 71 per cent

Hyundai Motor India Ltd (HMIL) announced yesterday that the company's sales grew by 71 per cent at 22,704 units. The company sold 19,007 units in the compact car segment, 3,503 units in mid-size car category, 152 units in the premium mid-size car segment and 23 units in the luxury car segment, a company statement said. Hyundai targets export earnings of Rs.2, 700 crore for the fiscal

Hyundai Motor India Ltd expects to export 95,000 cars in the year against 70,000 last years, according to company officials. With about Rs1, 325 crore in export earnings in the first six months of this year, the company is confident of ending the year with an export income of Rs2, 700 crore, up from Rs1, 700 crore last year. Of the 1,35,165 cars exported from India in 2004, Hyundai Motor India accounted for 85,000, he said and added that a majority of the company's exports were going to "the most discerning markets" of Europe and Latin America, including the Nafta (North American Free Trade Agreement) area of Mexico. This was the best possible comment on the manufacturing standards of the company and its vendors, he asserted.

LITERATURE REVIEW & PROBLEM FORMULATIONThe conceptual discussion brings into front the factors on which early adopter and late adopters differ. Some these factors are awareness, media habits, loyalty, age , income, education, occupational status, risk, variety seeking, and attitude towards change.Chuan-Fong shih & Alladi Venkatesh his research shows the importance of Diffusion of Innovation. They suggested the extended model of Diffusion of Innovation. The research shows that though diffusion process cannot be understood without studying the nature of adoption, to complete the diffusion study use-diffusion process also needs to be examined. This research was based on two criteria rate of use and variety of use. They came out with four typology: intense, specialized, non specialized and limited.

Another research carried out to find the factor, which affects the adoption of Internet banking. The result of the research shows that internet accessibility, awareness, attitude towards change, computer and internet access costs, trust in ones bank, security concerns, ease of use and convenience are the major factors affecting the adoption of internet bank services in Malaysia. The demographic difference between Internet bank users and the non-users were not very evident in the study, particularly with reference to age and educational background.

Christophe Van den Bulte did research on The Bass Diffusion Model is not a Mixture of Innovators and Imitators. This paper has shown that the Bass model is all too often misinterpreted as representing the diffusion of innovations between two different types of actors, innovators and imitators. Bass (1969) assumed that innovation acceptance is driven in part by social contagion, and that the probability that an initial purchase will be made at [time t] given that no purchase has yet been made is a linear function of the number of previous buyersCompanys Vision;-HMILs vision for the future is to be:

The Leader in the Indian Automobile Industry,

Creating Customer delight and Shareholders wealth;

A pride of India.

Core Values;-The Five Values identified are as follows:

Customer Obsession

Fast, Flexible and First mover

Innovation and Creativity

Networking and Partnership

Openness and Learning

Marketing Strategy of hyundaiIn this section we identify the general marketing strategy under which this plan is being developed. It is very possible that a product will follow more than one strategy, and it is not in the focus of this study or plan to cover the strategies other products would sail upon except for the action plan we suggest. It can make the picture clear if we take note of the following issues:

The mission statement says, To manufacture and sell special purpose vehicles and component parts thereof. To manufacture and sell all kind of vehicels and components parts thereof.The vision of the organization is

To rank among the worlds top five automakers.

The objectives of the organization speak of

To increase the share in Indian Passenger Cars( includes SUVs and MUVs) Market

To expand its export volumes to America, Europe and Middle East.

Some Facts:

The Indian Passenger car industry (excluding MUVs) is growing at 13.4% (CAGR) and the MUV market is growing at 13.7% (There exists certain element of doubt on the projected CAGR, due to dependence of MUV market on certain other factors. CAGR calculated over 10 years data for passenger cars and for 4 years on MUVs. For clear understanding look in Exhibit ).

The cars industry accounts for 50% of automotive sector globally, whereas it accounts to 15% in India. Indian Car market is the second largest in terms of growth, after China.

HMIL has now planned to increase its production to 600,000 units per year by 2007.

PROPOSED ACTION PLAN: LAUNCH A MODEL TO CATER TO THE MUV SEGMENT.

The elements of Marketing Strategy are:

Product/ Market Selection:-

HMIL needs to cater to its existing markets from its present product lines. But HMIL needs to focus on the segment of MUV market. Though launching a MUV definitely needs certain competencies, they are not much different from what HMIL has and its parent company already serves to this segment, which makes it far more easier. By launching a MUV, HMIL would serve to the rural, semi-urban and urban markets and spread its network more into the roots of Indian market. This is purely a Market Development Strategy as the product already exists (Hyundai is being produced in Korean domestic market already), but now it is being offered to the Indian market. We would discuss the benefits we can associate and the design specifications of this product in the next section.

Pricing:-Hyundai has always been considered to be a quality product provider and is mainly associated with Value for Money, premium features at lower prices, stylish & trendy designs and superior quality. Hyundai has to be priced taking into consideration the perception customers have about Hyundai.

STRATEGY: Value Pricing retaining the qualities of being Premium Brand.

Objective: To offer high quality product at a competitive price; to enable a budget conscious buyer purchase the product; to enable many people to buy a new car with modern levels of safety and environmental protection; to win loyal customers and retain the existing customers.

The policy is to hold the price-line aDistribution: -HMIL is planning to expand its dealer network from the present 157 to 200 this year to reach out to semi-urban and rural areas and to increase its market share from the present 20 per cent. So the objective would be to reach the lucrative regions which can create huge number of sales. To begin with launching Hyundai in the following states Punjab, Haryana, Uttar Pradesh, Maharashtra, Kerala and Andhra Pradesh, where there is a sizeable affluent rural population seems to be a good idea to start on with. And also as Hyundai would be targeted at being a large family car/ van, we can head on with launching it at selected urban cities in other regions and the major cities of India.

Communication:-Positioning campaign: Hyundai needs to be positioned as a large spaced, power vehicle; as a cargo van which can be used both for Family use and transportation. It stands to be important to win the customers hearts by adding the emotional touch of being a large familys car and a very good MPV. Advertising:- Pre-launch campaign, TV campaigns, print ads, e-resources and certain areas of wireless/ mobile advertising.

Promotion:- Test rides, Finance schemes, After sales service discounts. PROBLEMS FORMULATION The company plans its raw material requirement from the sales projection, which was done by the marketing department of the company. At the end of every month, marketing department creates its budgeted sales for the existing product and new products. Marketing department creates its budgeted sales by considering demand of the product, actual sales in the previous month and the sales in the current month of the previous year.

Production, Planning and Material Control Department (PPMC) is based on the sales projection and calculates the requirement of the raw material for each department for each product. PPMC department authenticates raw material issued.

After the PPMC Department calculates the requirement of the raw materials, the purchasing department places an order to the vendor or supplier for each department. Then the supplier dispatches the material in the factory premises.

Now the raw material proceeds through the testing process. Here it is checked whether the raw material is as per the standard quality prescribed by company at the time of placing an order. At the time of testing they also allocate specific identification number to each material so that it can be referred at the time of production, if any defect occurs. Then raw materials are issued to the production department.

Company is following batch production process. They assign the batch number and lot number so that if any problem occurs while it is consumed they can detect the fault.

OBJECTIVE AND METHODOLOGY

3.1OBJECTIVE OF THE STUDY

The basic idea of thesis is to gather more knowledge about automobile industry of India India's entire industry -- local producers and transplants -- collectively manufacture about 1.4 million vehicles a year. The main objective is to find out marketing strategy of hmil where we found different attribute of marketing strategies such as, road demonstration, brand loyalty, market segmentation, brand upgardation of different products of company which increase the market share of the company in particular field. There is very much needed for the automobile sector because it is very much need to tell about company profile, its products, there marketing strategy to upgrade there brand loyalty in the automobile sector which increase there market share. Hyundai motors is making the tradition of making passenger car fastest growing car after Maruti Suzuki. Hyundai motors has recorded sale of 299,513 vehicles in the calender year (cy) 2006, an increase of 18.5 percent over cy 2005. Sample- during the thesis period we have gone through nearly recorded 100 of customers where all of them are satisfied with Hyundai performance buying of b and c segment of cars.

SIGNIFICANCE OF THE STUDY

For any business venture, marketing and sales go hand in hand. Opportunities come and go but business comes from the ones, which are handled properly in terms of leads. Leads for any new opportunity are very important for it to turn out a profitable venture.

Marketing and sales work hand in hand for leads. Promotion plays a very important role in both the departments. Promotion helps us to market a product properly and also helps in increasing the sale of the product as compared to competitors.MANAGERIAL USEFULNESS OF THE STUDY

Helps to have sale experience Helps to deal with different customers Helps to overcome the objections of the customers Helps to understand the problems of agents in a broader prospect It provides a platform where managerial role can be played effectively and efficiently.SCOPE OF THE STUDY

Deep insights would give me the clear knowledge of strategies adopted and which would make me a better marketing professional.

Important from a consultant prospective finding loopholes in marketing strategy of the company if any.

Contribution to the institute and my fellow colleagues and a unique piece of work.

The basic thing which is needed for thesis of Hyundai motors is to increase market share, increase brand loyalty by providing:

1. Value for money car

2. To implement best technology

3. To provide better customer service

4. to make quality products.3.2 METHODOLOGY

The study conducted to achieve the aforesaid objectives will be both exploratory and conclusive research in nature. It also involves personal interviews based on the questionnaire format. DATA COLLECTION METHODS:-

Primary source

Secondary source

Primary sources:-

The data required for the study is based on:

1. Personal interviews based on pre-decided format of structured undisguised questionnaire.

2. Personal interview with the Company representatives regarding the various data.

3. Personal interview with the Competitors Companys representatives regarding the various data.

Secondary sources:-

The secondary data consists of information collected from:

Websites

Published data on AUTOEXPO

Personal Interviews

DATA ANALYSIS TOOLS:-

Use of scales and graphs for analysis.Questionnaire design formulation:-

We asked questions to different Hyundai customers and potential buyers as well. We just wanted to geather information about what they feel to be a Hyundai car owner and how much satisfied are they with their cars performence and after sales services.

We asked both open and close ended questions to the customers. We asked question from different segment car owners. Our sampling size was about 100 peoples which include present owners of Hyundai car and potential buyer.

Survey Area: -We collected all information from various Hyundai showrooms and service centers (DELHI ONLY)

Time frame :- 6 weeks

Research design:-

We have used following research design in making our project:-EXPLORATORY RESEARCH DESIGN

It seeks to discover new relationships between several facts..It discovers ideas and insight.The major purpose of the exploratory research design is to do the clear identification of the problems.Bigger problems are broken in smaller segments.Exploratory study is the initial stage of marketing research as it is in a developing stage.Exploratory research helps in understanding explanations of various problems of marketing mix.The exploratory study may be used to clarify concepts and causes of problems It is also useful to test the aplicapility of new policies.It is dynamic and changes with new ideas and concepts.

CONCLUSIVE RESEARCH DESIGN

It is of two types:-

Descriptive research

Experimental design

It helps the marketing executive to arrive at a suitable decision from the various alternative decisions. The various alternative conclusions and selecting the most suitable conclusion may be done by its one of the forms, Descriptive research design. In this research design ,only a partial situation is clarified but in case of experimental research design a alternative is selected. Therfore, the experimental research design is considered an important conclusive research design.DATA ANALYSIS1. QUALITY ASSURANCE;-

GRAPH 4.1ANALYSIS:-Customers analysis report tells that about 50% says that HYUNDAI driving is good because of machinery used in the car components. but reaming people says that they dont find comfortable with HYUNDAI while driving.2. INCOME GROUP OF PEOPLE WHO BUYS HYUNDAI:-

GRAPH 4.2ANALYSIS:-The above chart shows that more than 50% of income group of 25,000-30,000 prefer HYUNDAI car to be there first car in the family. Which proves their brand loyalty and product differentiation from the other cars.3. PRICE RANGE:-

GRAPH 4.3ANALYSIS:-Majority of the people are satisfied with price range of HYUNDAI where they cant afford the car they finance the car.4. HYUNDAI AS PERSONALITY CAR:-

GRAPH 4.4ANALYSIS:

While buying HYUNDAI car more than 50% of people think that it suits to there personality which upgrade there social symbol in the society especially in women.5. COLOUR CHOICE:-

GRAPH 4.5Analysis:-Mainly people make choice for colours which suits their personality6. DEALERS PRICE :-

GRAPH 4.6ANALYSIS:-While purchasing most of the people think that yes their cars match with their personality while other who didt agreed ,majority were because of price range.7. DEALER ATTENDING PROPERLY:-

GRAPH 4.7ANALYSIS:--It is said by the customers that more than 50% of dealers are attaining customers properly and remaining of them have mixed thought for dealers attending them. many of the customers are happy with dealers attending to them.8. HYUNDAIS COMPARISON WITH OTHER CARS:-

GRAPH 4.8ANALYSIS:-About 30% of people says that HYUNDAI cars the excellent car. If so it is better for HYUNDAI to capture the big margin of market share in India, which shows the compatibility of HYUNDAI as comparison to other cars.9. FAMILY PREFRENCE:-\

GRAPH 4.9ANALYSIS:- It has seen that most of the Indian family prefer Santro car from the products of HYUNDAI which shows the Santros demand and it strengthen its market share.10. MILEAGE:-

GRAPH 4.10ANALYSIS:-The analysis shows that HYUNDAIS mileage is much better than any other car. this is mainly because they run very much fuel saving not in highways but also in cities, which how its better machinery used in car.11. MARKETING STRATEGY OF HYUNDAI:-

GRAPH 4.11ANALYSIS:-The marketing strategy of hmil upgarde the brand loyalty of Santro in b segment where the process of strategy consist of market share, brand promotion among the people through road demonstration, auto expos and showroom.12. HYUNDAI AMONG FAMILY PEOPLE:-

GRAPH 4.12ANALYSIS:-The HYUNDAI is very much popular car among the Indian families, because of its features, looks, price range, product quality and after sales service which proves there brand loyalty among the potential customers.13. HYUNDAIS STREEING:-

GRAPH 4.13ANALYSIS:-After driving HYUNDAI most of 50% customers find that HYUNDAI steering is very much comfortable while driving easy to move at 360 angle with power futures in that. again it proves HYUNDAI as the right choice among the customers in the country.FINDINGS AND RECOMMENDATIONS FINDINGS

India has been the scene of some of the most frenetic deal- making, big expansion announcements, and new car launches in the global auto industry

India's entire industry -- local producers and transplants -- collectively manufacture about 1.4 million vehicles a year

Consider that in the last 18 months alone General Motors, Fiat, Honda, Nissan, and Hyundai have announced Indian investments valued at roughly $1.5 billion.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. .

In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units. Last year, HMIL had clocked in 147,636 units from January to June.

the objective of the thesis of increasing the market share and studying various criteria important to customers has been fulfilled from the primary and secondary data collected from various sources Hyundai motors can improve market share, by increasing brand loyalty, giving more ads and promotions, increasing r&d etc

RECOMMENDATIONSIt is essential for every company to make their image perfect and desire to achieve customer satisfaction by selling products. i suggest the following recommendations: Hynduai motors should take appropriate measures for promotional offers through road shows, auto expos and promotion through dealers so that there product should reach customers and increase brand loyalty. Secondly they should increase brand loyalty among potential customers They should increase printads, t.v promotions like commercial advertisement and through game shows etc Many of the families always look for the price range, which Hyundai motors has to improve to attract more customers and retain the potential customers. Also the mileage of Hyundai cars should be improved not only at highways but also at cities. Also Hyundai motors must attract family more so that it can increase sale and profit margin. The dealers all over India should attained customers properly and make follow ups regularly to prevents customer loss and increase sales The colour choices should be made according to customers choices and convenience at showrooms. CONCLUSION There is a more preference of small cars observed in metro.

More than 85% are satisfied with the performance of Hyundai cars.

The major reason for dissatisfaction among the least number of dissatisfied owners is the maintenance cost which they bear. Majority of the customers want to have some incentives with the purchase of car.

Hyundai is very successful in India but I think their marketing department could do a little better.

Hyundai should focus on lower segment cars as there are few cars for that customer group which is the biggest weekness for Hyundai.

Hyundai car are comparatively costlier than its competitors thus they should look for some price cuts.

Hyundai should concentrate over some promotional activities to attract potential customers.BIBLIOGRAPHY

Books:

Kotler Philip, "Marketing Management", Pearson Education 2nd ed.

G.Schiffman Leon, Consumer Behavior, Prentice-Hall India 8th ed.

Kotler Philip & Kevin Lane Keller, Marketing Management.

D. Perreault William, Jr.& E. McCarth Jerome , Basic Marketing A Global Managerial Approach.Wesites:

www.hyundai.com www.autoworld.com www.mahindra.com www.mahindrascorpio.com APPENDIX QUESTIONNAIRE Personal Details

Name (Mr/Ms)_______________________ Designation__________________________OfficeAddress______________________________________

__________________________________________________PhoneNo_______________________

Email____________________________(Please give your honest opinions in making this survey a great success)

Note: Please tick ( in the appropriate boxes

Q.1 Are you satisfied with the quality assurance of HYUNDAI

1. Excellent 2. Very good3. Good4. Average

5. Poor

Q.2 Which income groups prefer to buy HYUNDAI CARS more?

1. 25, 000-30,000

2. 30, 000-35,000

3. 35, 000-40,000Q.3 Are you satisfied with price range of HYUNDAI

1. YES 2. NO

Q.4 Are HYUNDAI CARS Looks Match Your Personality?

1. YES 2. NO

Q.5 What Colour You Like offered by HYUNDAI?

1. WHITE

2. SILVER3. RED WHINE4. BLACK5. BEIGE

Q.6 Is dealer is offering you right price for HYUNDAI?

1. YES 2. NO

Q.7 Is dealer attending you properly?

1. Excellent2. Very good3. Good4. Average

5. Poor

Q.8 How do you compare YOUR CAR with other cars?

1. Excellent2. Very good3. Good

4. Average

5. Poor

(PLESE MENTION YOUR CAR) -------------------Q.9 Are your family member prefers HYUNDAI CAR for driving?

1. Excellent2. Very good

3. Good

4. Average

5. Poor

Q.10 Is YOUR CAR giving you right mileage according your expectation?

1. Yes 2. No

Q.11 What do you find about company marketing strategy while purchasing YOUR CAR?

1. Excellent 2. Very good3. Good

4. Average

5. Poor

Q.12 Is your family finds YOUR CAR as a right choice?

1. Yes 2. NoQ.13 How do you find HYUNDAI steering working?

1. Excellent

2. Very good

3. Good

4. Average5. Poor

if No suggest new products that HYUNDAI should introduce

a) _____________________________________ b) _____________________________________ c)_______________________________________

Sales Executives (Dealers)

Sales Executives (Dealers)

Sales Manager

Sales Manager

Sales Manager

Sales Executives (Dealers)

Regional Manager

Regional Manager

MD

President

Executive Director (Marketing & Sales)

GM(Sales)

Regional Manager

Regional Manager

Sales Manager

Sales Executives (dealers)

Dealers

Dealers

Dealers

Dealers

Dealers

Dealers

C&FA

C&FA

Factory/Plant

PAGE 54

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