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P.G DEPARTMENT OF BUSINESS ADMINISTARATIONSAMBALPUR UNIVERSITY, JYOTI VIHAR, BURLA,768019, ORISSA

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PROJECT REPORT ON

COMPARATIVE STUDY OF MARKETING STRATEGIES OF

TWO AUTOMOBILE COMPANIES

Prepared by:

PITABASH BEHERAMBA 6th Trimester

Roll No.1410MBA13

Under the guidance of

Dr.P.C TRIPATHYP.G DEPARTMENT OF BUSINESS ADMINISTARATION

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SAMBALPUR UNIVERSITY

DECLARATION

I, Mr. Pitabash Behera , a 6th trimester student of P.G Department of

business Administration, Sambalpur University hereby declare that I have

duly completed my project on

COMPATIVE STUDY OF MARKETING STRATEGIES OF TWO

AUTOMOBILE COMPANIES for the academic year 2010-2012.

The information submitted is true and original to the best of my

knowledge.

Pitabash Behera

Date :

Place :

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ACKNOWLEDGEMENT

I take immense pleasure in thanking HOD Sir,Dr.Biswajit Sathpathy for

having permitted me to carry out this project work.

I wish to express my deep sense of gratitude to my Project Guide,

DR. P. C Tripathy for his guidance and useful suggestions, which helped

me in completing the project work, in time.

I thank him for mentoring and encouragement throughout the project, also

for his assistance during the preparatory phase and numerous suggestions.

I would also like to thank all the Maruti and Hyundai dealers whom I met

during the survey, for giving all the required information.

Finally, yet importantly, I would like to express my heartfelt thanks to my

beloved parents for their blessings and the financial support, my

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friends/classmates for their help and wishes for the successful completion

of this project.

CERTIFICATE

This is to certify that the dissertation entitled COMPARATIVE STUDY

OF MARKETING STRATEGIES OF TWO AUTOMOBILE

COMPANIES submitted to the SAMBALPUR UNIVERSITY by

PITABASH BEHERA for the award of MASTER IN BUSINESS

ADMINISTRATION is a record of bonafide original research work

carried out by his under my supervision and guidance. The

dissertation has reached the standard of fulfilling the partial requirements

of the regulation to the degree.

The dissertation has not been submitted to any other

university/institution for the award of any degree or diploma.

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DATE: Dr. P.C Tripathi

Department of Business

AdministrationPLACE :

INDEX

Sr no. Particulars Page

no.

1 Declaration I.

2 Acknowledgement II.

3 Introduction 1

4 Automobile Company Profiles 5

5 Theoretical View 15

6 Practical View 27

7 Suggestions and Recommendations,

Conclusions

44

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8 Annexure 48

9 Bibliography 56

CHAPTERWISE PRESENTATIONS

Chapter 1 Introduction

1.1 About Marketing Strategy

1.2 Title of the study

1.3 Objectives of the study

1.4 Scope of the study

1.5 Limitations of the study

Chapter 2 Company Profiles

Company Profiles

Chapter 3 Theoretical View

3.1 History of Indian Automobile Industry

3.2 Evolution of Automobile Industry

3.3 Common Marketing Strategies of Car Companies

3.4 Market Share of Automobile Companies

3.5 Marketing Strategies of Maruti Suzuki

3.6 Marketing Strategies of Hyundai

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3.7 Comparative Study of Maruti Suzuki and Hyundai

Chapter 4 Practical view

4.1 Charts and Interpretations ( Chart 1 to 20)

4.2 Observations

Chapter 5 Suggestions and Recommendations, conclusions

List of Charts/ Graph

Chart no. Name Page no.

1 Evolution of Automobile Industry 14

2 Market share of Automobile Industry 20

3 Way of Purchase 32

4 Views of dealers on Promotion through

sponsoring reality show

34

5 Increase in sales during Festive Season 366 Users of Maruti/ Hyundai 37

7 Most Preferred car 38

8 Reasons for Using Maruti & Hyundai Car 39

9 Customers Rating to cars performance 39

10 Expectations Met 40

11 Criterias in Buyers Mind 40

12 Reasonable Pricing 4113 Preference of Customers 42

14 Strategies through which Customers Attracted 42

15 Dealers Service 43

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Introduction

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.

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http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing


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On the Canvas of Indian Economy, Auto Industry occupies a prominent

place. Automobile sector is one of the core of Indian Industry.Continious

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

competitve market on has to come up different ides 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 econimic

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.

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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.

Title of Study

Comparative Study of Marketing Strategies of Two Automobile

Companies

Objective of Study

- To know the various strategies used by Maruti Suzuki and Hyundai

Company to attract maximum number of customers.

- To know which company offers better cars, better after sales services and

by which company cars customers are satisfied most.

- To know the demand of Automobiles.

- Competition from other car manufacturers.

-To know the trend in Market.

- To know which car is more demanded by Customers.

- Through which strategies maximum customers are attracted.

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- To know recession effect on sale of cars

Scope of Study

- Company will come to know what attracts Customers.

- Company as well as Dealers of Maruti Suzuki and Hyundai will come to

know that which are the criterias customers look for before buying car.

- Company and Dealers will also come to know the future changes which

will be require to satisfy customer needs and wants.

Methodology of Data Collection

Primary Data:-

Visiting various Dealers and asking them about their promotional

strategies and requirement of customers.

Asking to users of Maruti and Hyundai about their preference, criterias

while buying car and their experience with dealers and their expectations

from dealers.

Secondary Data:-

Magazines.

Internet.Friends & seniors

Period of Study:-

The Period of Study is from JUNE-2012 TO AUGUST-2012

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Maruti Suzukis Profile

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.

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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 lanuched 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 seg, 45% in B seg and

86% overall.

The company has a portfolio of 18 brands, including

800 (Launched 1983)

Omni (Launched 1984)

Gypsy (Launched 1985)

WagonR (Launched 1999)

Alto (Launched 1997)

Swift (Launched 2005)

Estilo (Launched 2007)

SX4 (Launched 2007)

Grand Vitara (Imported) (Launched 2007)

Swift DZire (Launched 2008)

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A-star (Launched 2008)

Ritz (Launched 2009)

Eeco (Launched 2010)

Alto K10 (Launched 2010)

Kizashi (Launched 2011)

Maruti Ertiga, seven seater MPV R3 designed and developed in India, will

compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In

early 2012,

Suzuki Ertiga will be exported first to Indonesia in Completely Knock

Down car.

Maruti XA Alpha based compact SUV to compete with the Ford EcoSport

& Renault Duster will be launched in the year 2014.

In recent years, Maruti has made major strides towards its goal of

becoming Suzuki Motor Corporation's R and D hub for Asia. 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.

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 (TrueValue), lease and fleet management service for

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corporates (N2N), Maruti Insurance and Maruti Finance are now fully

operational.

Hyundai Motors Profile

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

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Santro in the B segment, the Getz Prime, i10,Eon 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 616,039

units vehicles in the calendar year (CY) 2011, an increase of 41.6%

percent over CY 2010. In the domestic market it clocked a growth of

13.6%percent with 30402 units in 2011, while overseas sales grew by 11.2

percent, with exports accounting for 240,25 units in 2011.

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

329 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.

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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, S.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 all the stages of the product lifecycle from

production, sales, use to disposal and has been awarded the ISO 14001

certification for all its three major plants in Ulsan, Asan and Jeonju in

S.Korea.

Cars of Hyundai

Hyundai deals in wide variety of cars which includes

Atos/Atoz/Santro

Coup/Tiburon/Tuscani

Dynasty

Elantra/Avante/Lantra

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Eon

Equus/Centennial

Excel

Scoupe

ix20

Genesis

Genesis Coupe

Getz/Click/Getz Prime/TB

Grandeur/Azera/XG

i10

i20

i30/i30cw/Elantra Touring

Hyundai i40

Lavita/Matrix

Pony

Santamo

Sonata/i45

Stellar

Veloste

HISTORY OF INDIAN AUTOMOBILE INDUSTRY

PRE- LIBERALIZATION PERIOD

Since Independence The Car Industry was closely monitored and

controlled by the government till 1981. Limited choices were available to

the car buyers due to the limited manufacturers and tight supply.

Hindustan Motors (HM) and Premier Automobile (PAL) that were set up

in 1940's dominated the vehicle market and industry. In the 1950s, the

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arrival of Tata Motors, Bajaj Auto, and Mahindra & Mahindra led to

steadily increasing vehicle production in India, while the 1960s witnessed

the establishment of the two- and three-wheeler industry in India.

But between 1970 to the economic liberalization of 1991, the automobile

industry continued to grow at a slow pace due to the many government

restrictions. However, the automotive industry witnessed tremendous

growth after the entry of Maruti Udyog in the 1980s.

In 1981 the government decided to review their car industry policy and

found that the segment was neglected and there was a big market available

for cars. The existing cars available in the market were costly and

technically less sound with compare to international standard. Then

government initiated dialogues with Suzuki Motors, a Japanese car

manufacturing company, finalized a joint venture, and formed a company

named Maruti Udyog Limited (MUL). The initial venture was between

Government of India with a share of 74% and Suzuki Motor with a share

of 26%.

That was a revolutionary step taken for the car industry in India. In 1983

MUL launched its first car in India (Maruti 800) with a price tag of

Rs.40,000/-.

This development was a big shock to the existing car manufacturers and

they also rushed to improve and increase their product line.

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After the lifting of licensing in 1993 by government, 17 new ventures

came up, of which 16 are for manufacture of cars.

Today, almost all of the major global players are present in India. The

automotive industry is today a key sector of the Indian economy and a

major

foreign exchange earner for the country.

Government

1981 was the year when government taken a revolutionary initiative to

review and reform its policy related to car industry. Now getting

permission to produce cars in India is easier and new entrants are coming

almost every year. Government has also imposed heavy imposed heavy

import duties on imported vehicles to safeguard the car manufactured

locally.

POST- LIBERALIZATION PERIOD

Following the economic reforms of 1991, the automobile section

underwent delicensing and opened up for 100 percent Foreign Direct

Investment. A surge in economic growth rate and purchasing power led to

growth in the Indian automobile industry, which grew at a rate of 17% on

an average since the economic reforms of 1991.

India's automotive components industry is being urged by the government

to partner with overseas firms with the aim of making India a platform for

outsourcing as well as a global R&D hub. As the Indian vehicle

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production industry has grown, so has the domestic supplier industry. But

the global auto industry's search for lower cost and more international

outsourcing has led to a sharp growth in component output and exports in

recent years.

The positive demographic factors, stable macro-economic environment

and pro-reform policies of the government, low manufacturing costs,

availability of skilled labor has attracted almost all major global auto

players making their way into India like GM, Ford, Daewoo, Honda and

Toyota The intense competition has compelled the manufacturers to

launch the latest global offering in India as early as possible. It has also

enabled to keep the prices of the vehicles under check. The consumers, in

turn, have benefited from wide choice of models, technologically

advanced cars and better service from the car manufacturers.

Major Manufacturers in Automobile Industry and their Cars

Maruti Udyog Ltd.

Cars:-

800,Omni,Gypsy,WagonR,Alto,Swift,Estilo,SX4,Grand Vitara,Swift

DZire,A-star,Ritz,Eeco,Alto K10,Kizashi,Maruti Ertiga

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