SUMMER TRAINING PROJECT REPORT

On

STUDY OF CUSTOMER SATISFACTION

AT

HYUNDAI MOTORS LIMITED

Submitted in Partial Fulfillment for the Award of the Degree of Master of Business Administration

Under the Guidance of: Submitted By:

Dr Abhijit Das Mohd. Irshad

ANA COLLEGE OF MANAGEMENT STUDIES, BAREILLY

AFFILIATED TO UP TECHNICAL UNIVERSITY, LUCKNOW

STUDENT DECLARATION

This is to certify that I have completed the Project titled “Study of Customer Satisfaction at Hyundai

Motors Ltd.” under the guidance of Dr Abhijit Das in partial fulfillment of the requirement for the award

of Degree of Master of Business Administration at ANA College of Management Studies, Bareilly. This is

an original piece of work & I have not submitted it earlier elsewhere.

Date: Signature :

Place : Bareilly Name : Mohd Irshad

Roll No. :

CERTIFICATE

This is to certify that the summer project titled “Study of Customer Satisfaction at HYUNDAI

MOTORS LTD.” is an academic work done by Mohd Irshad submitted in the partial fulfillment of the

requirement for the award of the degree of Master of Business Administration, under my guidance &

direction.

To the best of my knowledge and belief the data & information presented by him/her in the project has not

been submitted earlier.

Signature :

Name of the Faculty : Dr Abhijit Das

Designation : Director

EXECUTIVE SUMMARY

Automobiles have become an indispensable part of our lives, an extension of The human body that

provides us faster, cheaper and more convenient mobility every passing day. Behind this betterment go the

efforts of those in the industry, in the form of improvement through technological research. The Indian

automotive component industry is dominated by around 500 players which account for more than 85% of

the production. Hyundai Motor Co. was established as an independent Company in 1937.This project on

Hyundai tells us about the satisfaction level of consumers with The Hyundai. Firstly Introduction about

The Automobile Industry has been explained in this project. As a joint venture between Group and

Hyundai Motor Corporation, Hyundai Motor Limited (TKM) aims to play a major role in The

development of The automotive industry and The creation of employment opportunities, not only through

its dealer network, but also through ancillary industries. Hyundai Motor Limited firmly believes that The

success of this venture depends on providing high quality products and services to all valued customers

through The efforts of its team members. Hyundai Motor Limited, along with its dedicated dealers and

suppliers, has adopted The "Growing Together" philosophy of its parent Company TMC to create long-

term business growth. In this way, Hyundai Motor Limited aims to further contribute to progress in The

Indian automotive industry, realize greater employment opportunities for local citizens, improve The

quality of life of The team members and promote robust economic activity in India. The next phase looks

upon The research carried out for analyzing The response towards Hyundai. This has been done by

conducting a survey.

After conducting the survey it was observed that most of The Hyundai owners were satisfied with their

services and its maintenance. The designing and interiors are most liked by The customers but few people

also want it to be more affordable.

TABLE OF CONTENTS

Chapter 1 Introduction about The Industry

Chapter 2 About The Organization

Chapter 3 Research Methodology

3.1 Objectives of The Study

3.2 Methodology

3.3 Limitation of Study

Chapter 4 Findings and Analysis

4.1 Findings from Primary Data

Chapter 5 Conclusion

Chapter 6 Recommendations

ANNEXURE

Annexure I Questionnaire

Annexure II Product Mix of Hyundai

Bibliography

CHAPTER 1

Introduction about the Industry

Introduction

The Indian automotive component industry is dominated by around 500 players which account for more

than 85% of the production. The turnover of this industry has been growing at a mammoth 28.05% per

annum from 2002-03 onwards as illustrated in Fig which clarifies its emergence

as one of India's fastest growing manufacturing sectors. During 1990s, the auto components market in

India used to be dominated by supplies to the aftermarket with only 35% exports sourced by global Tier 1

OEMs (Original Equipment Manufacturers). The industry made a sustained shift to the global Tier 1

market and today, the component manufacturers supply 75% of their exports to global Tier 1 OEMs and

the remaining to the aftermarket. This is largely due to the growing capability of The Indian component

suppliers in understanding technical drawings, conversance with global automotive standards,

economically attractive costs (manufacturing costs are 25%-30% lower than its western counterparts),

flexibility in small batch production and growing information technology application for design,

development and simulation.

Besides The burgeoning demand of auto components from global majors, the domestic automobile

industry has been showing a sparkling growth caused by increasing customer base and affordable loans.

Based on this, the turnover of The Indian auto component industry is expected to touch US$ 18.7 billion

by 2009 and estimated to reach US$ 40 billion by 2014.

Overview of Indian Automobile Industry

The liberalized policies of The Indian Government paved towards steady evolution of India as a stable and

market driven economy with the real Gross Domestic Product growth in excess of 8%, foreign exchange

reserves crossing The $150 billion mark, growing value of Indian Rupee compared to US dollar and

reducing inflation rate. 100% Foreign Direct Investment, absence of local content regulation,

manufacturing and imports free from licensing & approvals in The automobile sector coupled with

customs tarifforauto components reducing to 12.5% resulted in increased number of multinationals

establishing Their bases in India and with export markets looking up, The Indian automobile industry is

poised for a phenomenal growth. The automobile production in the sub-continent has been growing

steadily @ 18.53% per annum from 2002-03 onwards with total vehicle production standing at a

mammoth 1,00,31,296 nos. in 2005-06.

Among The automobiles, 2 wheelers account for 75.77%, cars about 11.09%, 3 wheelers to the tune of

4.33%, tractors about 2.95%, buses & trucks constitute 2.19%, Multi Utility Vehicles (MUVs) to The tune

of 1.96% and Light Commercial Vehicles (LCVs) about 1.71% of The total number of automobiles

produced in the country. Presently, India is the second largest market after China for two & three

wheelers. In tractors production, India is one of the two largest manufacturers in the world along with

China. The subcontinent stands as the 4th largest producer of trucks in the world. Coming to The

passenger car segment, the country is positioned 11th in car production in the world. The Indian passenger

car market is far from being saturated leaving ample opportunity for volume growth since the per capita

car penetration per 1000 is only 7 compared to 500 in Germany. The production of cars in The country has

been growing at a mammoth 27.58% per annum from 2002- 03 onwards. In general, cars are broadly

classified as Mini, Compact, Mid-Size, Executive & Premium varieties. There has been a steady rise in

compact car production from 333,000 in 2002-03 to 715,000 in 2005- 06, mid-size cars from 122,000 to

204,000 nos., executive cars from 2000 to 23,000 nos. and premium variety cars from 4000 in 2002-03 to

5000 nos. in 2005-06. The mini car segment production reduced from 150,000 in 2002-03 to 98,000 nos.

in 2005-06. These statistics vividly reveal the increasing capacity of The Indian customer, thus driving

The passenger car demand rapidly up The price ladder. Analysts speculate car production in The sub-

continent to touch 1575,000 in 2009 and 2654,000 by 2014. Cars and MUVs exports rose from 72,000 in

2002-03 to reach 176,000 nos. in 2005-06 with growth @ 48.155 per annum from 2002-03 onwards.

Out of The two wheelers produced in India, motorcycles account for 81.59%, scooters about 13.42% and

mopeds to the tune of 4.99% of the total production. The production statistics which shows The growth of

2wheelers @ 16.58% per annum from 2002-03 onwards. Out of this, motorcycles have exhibited

production growth @ 19.99% per annum, scooters @ 6.74% per annum & mopeds @ 2.65% per annum

from 2002-03 onwards. Two wheeler production units in India constitute of Japanese OEMS (Original

Equipment Manufacturers) which include Hero Honda Motors, Honda Motorcycle & scooter India (P)

Ltd., Yamaha Motor India (P) Ltd. & Suzuki Motorcycle India (P) Ltd. and Indian OEMs consisting of

Bajaj Auto Ltd. , T V S M o t o r Company Ltd., LML Ltd., Kinetic Engineering Ltd., Majestic Auto Ltd.,

Kinetic Motor Company Ltd. and Royal Enfield of Eicher Ltd. Out of the aforementioned, Hero Honda

accounts for 39.55%, Bajaj Auto about 26.87%, TVS Motors 17.98%, Honda Motors 7.94%, Yamaha

Motors 3.27%, LML 1.41% and The remaining 2.98% of The total 2 wheelers production in The country.

The exports of two wheelers made a significant growth from a level of 180,000 in 2002-03 to reach

513,000 nos. in 2005-06. The latest estimates put up production of 2 wheelers to 13.6 million by 2009.

The production of Multi Utility Vehicles (MCVs) has been showing sparkling growth @ 23.84% per

annum, Light Commercial Vehicles (LCVs) @ 35.49% and Medium & Heavy Commercial Vehicles (M

& HCVs) @ 27.33% per annum from 2002-03 onwards in India. Industry analysts put up MUVs

production to reach 207,000 in 2009 and 277,000 in 2014. Commercial vehicle exports made a steady

growth from a level of 11,000 in 2002- 03 to 41,000 in 2005-06. The manufacturing units for four

wheelers in India constitute of Japanese OEMs covering Maruti Udyog Ltd., Hyundai Motor (P) Ltd.,

Honda Siel cars India Ltd. & Swaraj Mazda Ltd., Indian OEMs consisting of Tata Motors Ltd., Mahindra

& Mahindra Ltd., Ashok Leyland Ltd., Force Motors Ltd., Eicher M o t o r s L t d . & Hindustan Motors

Ltd., Korean OEM Hyundai Motor India Ltd., American OEMs which include General Motors India (P)

Ltd. & Ford India (P) Ltd. and European OEMs consisting of Skoda Auto India (P) Ltd., Daimler Chrysler

India (P) Ltd., Volvo India (P) Ltd., Tatra Trucks India Ltd. & Fiat India (P) Ltd. Presently, Maruti Udyog

accounted for 33.24%, Tata Motors 26.14%, Hyundia Motors15.13%, Mahindra & Mahindra 7.47%,

Ashok Leyland 3.78%, Hyundai 2.61%, Honda Siel Cars 2.40%, Force Motors 2.08%, General Motors

1.78%, Ford India 1.57%, Eicher Motors 1.41% and oThe4rs 2.39% of The total production of four

wheelers in India.

The tractors production in the country has been making a steady growth @ 25.80% and three wheelers @

19% per annum from 2002-03 onwards. The Indian automobile industry is flooded with huge investments

involving green field and brown field projects. Hyundai plans to set up a LCV plant at Pune, India.

Hyundai would be investing US$ 4.2 billion for starting production of small cars & Suzuki plans to invest

US$ 1.6 billion in India. Isuzu Motor & Nissan Motor belonging to Hitachi Ltd. Of Japan would begin

manufacturing cars in India. Tata Motors is setting up its novel small car production facility near Kolkata.

Hyundai plans to make India an export base for small cars. Telecon is investing about US$ 54 million for

production of earth moving vehicles/components at Kharagpur in India. Also, Honda Motorcycles &

scooters have ambitious plan for making this sub-continent a hub for two wheelers exports. All These

forward towards further increase in demand for auto components.

Auto Components Production Range In India

India is bestowed with excellent infrastructure for production of auto components. There are various

national and multinational companies in the country that have put up state of art auto component

manufacturing facilities. The production range of auto components in India. For many of the auto

components, steel remains the dominant material due to its versatility providing a wide range of properties

through the choice of appropriate combination of composition and processing.

Along with The above, long term availability of raw materials, good recycling ability, a relatively

favourable price and The large experience based knowledge favour steel as a choice for use in auto

component manufacturing.

The steel requirements in general for engine parts such as fan, pulley, piston pin & oil fan are met by low

carbon steels, medium carbon steels/alloy steels based on requisite mechanical properties are applied for

crankshafts, connecting rods, rocker arm shafts e t c . While low carbon/low carbon alloy case hardening

steels are u s e d f o r moderately/severely stressed components. Transmission parts such as input shaft,

output shaft, front axle, rear axle, kick down & reverse bands, pinion shafts, clutch discs & plates,

automatic transmission components etc. are made with medium carbon/alloy steels while The gears are

made of low carbon/low carbon alloy case hardening steels. Suspension and steering parts such as knuckle

ball studs, arm sector shafts, arm parts, pitman & idler arms, struts, tie rod ends, ball joint studs, center

link etc. are either made of medium carbon steel or alloy steel depending upon The conferred properties,

spring steels for suspension springs while low carbon case hardening steels are applied for components

that require wear resistance. Various low carbon/low carbon alloy steels are used for rivets, bolts, nuts &

other fastener items. Steel required for chassis components are met with cold forming & wieldable low

carbon/micro alloyed steel sheets/plates while deep drawing & extra deep drawing varieties of steel sheets

are employed for body.

Steels are shaped, formed, heat treated and/or machined into automotive components fulfilling The

specific design criteria requiring critical set of properties like strength & toughness, fatigue & fracture

resistance, wear resistance, corrosion resistance etc. Technology of machining, fabricating or forming of

engineering components has undergone rapid changes with the advent of Computer

Aided Manufacturing systems and robotics. Consequently, the auto component manufacturers require the

highest degree of consistency in the quality of the steels both metallurgical and dimensional. Also, the

changes in customer expectations for lighter, more powerful & fuel efficient vehicles with greater degrees

of reliability & safety will continuously drive The steel industry towards development and manufacturing

of steel with closer band of metallurgical properties, physical properties, leaner alloy compositions, higher

strength to weight ratio etc. at The most competitive prices.

Today, automobile sector accounts for 7% of the total steel consumed in India. The sparkling growth of

the automotive component industry and the automobile industry in India translates into a tremendous

potential and opportunity for domestic steel producers to cater to the needs of these industries where steel

is the most vital input.

India Emerging as Hub for Auto Components Indian auto component industry is fast emerging as an

attractive OEM & Tier 1 supplier. The auto component exports from India rose from a mere US$ 0.760

billion in 2002-03 to US$ 1.8 billion in 2005-06 showing growth @ 45.61% per annum from 2002-03

onwards. In 2005-06, about 36% of the component exports headed for Europe, 26% for America, 16% for

Asia, 10% to Africa, 10% to Middle East, 1.5% to Oceania and others account for 0.5% of the total

exports.

Based on The sparkling growth in demand for auto components, global auto majors and domestic giants

have been investing heavily in India because of India's competitive advantage. Accordingly, the total

investment in Indian auto component industry has been showing a tremendous growth @ 22.12% per

annum from 2002-03 onwards. The investment is expected to rise further with huge strides. Among

various investments pumping in India, auto parts maker Robert Bosch of Germany will investment US$

201.4 million in its Indian subsidiaries over two years with bulk of investment in Motor Industries Co.

Ltd.(MICO). Hitachi Ltd. of Japan is planning to start auto component manufacturing in India with its O E

M s - I s u z u Motor & Nissan Motor to begin manufacturing cars in India. GKN Driveline, a wing of UK

based auto c o m p o n e n t manufacturer GKN plans to open a new manufacturing facility in India. Dubai

based auto ancillary Parts International Company plans to invest about US$ 3.6 million in India over three

years which includes setting up a manufacturing facility to service exports to CIS & SAARC countries.

Fiat India has been taking various measures to become a global sourcing hub for components by exporting

components worth US$ 8.3 million last year to its operations in South Africa and plans to source

components worth US$ 200 million. Hyundai already invested US$ 197 million to supply transmission

system, gear boxes, axles, propeller shafts and aluminium pressure die casting products to global

operations. Delphi is planning to source components such as piston rods, steering system, drive shafts,

catalytic converter, stampings in power train, sheet metal/stampings for chassis and electrical parts like

wiring harnesses & armature motors worth US$ 250 million by 2007. General Motors which presently is

sourcing components worth US$ 6 million from Indian suppliers intends to ship parts worth US$ 1 billion

for its global production units by 2010 and The components include crankshaft forgings, radiator caps,

gear boxes, leaf springs, wiring harnesses & cables. Ford Motors plan to source components like steering

columns, alloy wheels, crankshafts, exhaust parts, complete engines for IKON model, radiators, springs,

castings, forgings, leaf springs, body panel, horns, dash board assembly, starters, alternators & door trims

from The present level of US$ 150 million to around US$ 600 million by 2009 from India. Visteon which

had already invested US$ 56 million is sourcing components for exterior, instrument, cluster assembly &

bumpers, AC system, starters, motors, alternators and panel instrument assembly from India.

Along with this, over 20 OEMs have set up International Purchasing Offices (IPOs) in India for

components and the figure is expected to double by 2010.

Considering the above, Indian auto component manufacturers are substantially increasing investments in

production capacities, establishing partnerships in India & abroad and have been investing in or acquiring

companies overseas. In continuation with this, global multi nationals are shifting automotive design

centers into India with India evolving as an excellent automotive R & D base for prototyping, testing,

validating and production of auto components caused by excellent IT skills & exemplary automotive

domain knowledge.

Conclusions

With increased role of outsourcing in an integrated global economy and India being considered as a low

cost automotive component producer possess a greater edge in the global market aspiring to capture 10%

share of the global market which translates into an export target of US$20 billion by 2015. Also, by the

current trends in the domestic automotive industry, the indigenous demand for auto components is

estimated to reach US$20 billion in The next 10 years. This is expected to increase the demand for alloy

steels providing a great opportunity for alloy steel producers in the country to capitulate on it.

CHAPTER 2

About The Organization

COMPANY PROFILE

1.1 ABOUT HYUNDAI MOTORS INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company

(HMC), South Korea and is the largest passenger car exporter and the second largest car

manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The

A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the

Verna, the A5 segment includes the Sonata Transform.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most

advanced production, quality and testing capabilities in the country. To cater to rising demand,

HMIL commissioned its second plant in February 2008, which produces an additional 300,000

units per annum, raising HMIL’s total production capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customers with cutting-edge global

technology, HMIL has set up a modern multi-million dollar research and development facility in

the cyber city of Hyderabad. It aims to become a centre of excellence for automobile

engineering and ensure quick turnaround time to changing consumer needs.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to

achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more

than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has

been the number one exporter of passenger car of the country for the sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and

580 strong service points across India, which will see further expansion in 2010.

To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and

580 strong service points across India.

1.2 COMPANY’S HISTORY

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung Chung 

established Hyundai Auto Service in Seoul, South Korea at The age of 31 years.   The name Hyundai was

chosen for its meaning which in English translates to “modern.”  The Hyundai logo is symbolic of The

Company's desire to expand. The oval shape represents The Company's global expansion and The stylized

"H" is symbolic of two people (The Company and customer) shaking hands.

Hyundai Motor India Limited was formed in 6 May 1996 by The Hyundai Motor Company of Korea. The

first production plant was established in Irrungattukotai near Chennai, India.

HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was a runaway success.

Within a few months of its inception HMIL became The second largest automobile manufacturer and The

largest automobile exporter in India.

Hyundai sells several models in India, The most popular being The Santro Xing, i10 and The i20.OTheR

models Include Getz Prime, Accent, Verna TRANSFORM, Tucson, and The Sonata Transform. 

1.3 COMPANY’S VISION

The company’s motto is "Innovation for Customers". The company’s vision is five core strategies: global

orientation, respect for human values, customer satisfaction, technology innovation, and cultural creation.

They have a desire to create an automobile culture of putting customer first via developing human–

centered and environment–friendly technological innovation.

The company’s strive’s to create a more affluent lifestyle for humanity, and contribute to the harmony and

co-prosperity with shareholders, customers, employees and other stakeholders in The automobile industry.

The spirit of creative challenge of the company has been a driving force in leading HMIL to where it is

today. It is the permanent key factor for HMIL to actively respond to change in the company’s the

management system and seek creative and self–innovative system. The spirit of creative challenge,

creates profits, The primary objective of a private enterprise. Furthermore, the company’s takes

responsibility for The environment and society and provide benefits to all stakeholders including

shareholders, customers, executives, employees, suppliers, and communities.

Corporate Philosophy 

 

Management Philosophy  

With the spirit of creative challenge, we will strive to create a more affluent lifestyle for humanity, and

contribute to the harmony and co-prosperity with shareholders, customers, employees and other

stakeholders in the automobile industry.

The spirit of creative challenge has been a driving force in leading HMC to where it is today.

It is the permanent key factor for HMC to actively respond to change in the management system and seek

creative and self–innovative system. With the spirit of creative challenge, we create profits, the primary

objective of a private enterprise. Furthermore, we take responsibility for the environment and society we

belong to, and offer sustainable mobility in order to implement our corporate philosophy and provide

benefits to all stakeholders including shareholders, customers, executives, employees, suppliers, and

communities.     Vision   We announced "Innovation for Customers" as our mid–to long–term vision with

five core strategies: global orientation, respect for human values, customer satisfaction, technology

innovation, and cultural creation. We desire to create an automobile culture of putting customer first via

developing human–centered and environment–friendly technological innovation.

 

Management Policy  

Based on a respect for human dignity, we make efforts to meet the expectations of all stakeholders

including customers and business partners by building a constructive relationship amongst management,

labor, executives and employees. Also, we focus on communicating our corporate values both internally

and externally, and gaining confidence from all stakeholders.  

   

Mid-and Long-term Strategies. We developed five mid–and long–term strategies: global management,

higher brand values, business innovation, environmental management, and strengthening product

competitiveness. Especially, we selected environmental management as one of our strategies to meet the

needs of our stakeholders and the society we belong to. We also intend to promote sustainability

development and preservation of the environment.  

VISION AND MISSION

At a time when India was awakening to the call of freedom, MGF was taking a revolutionary step that

would help hasten the country's development. Today, the MGF Developments portfolio spans the entire

spectrum of small, medium and large-scale equipment finance as well as big ticket leasing, vehicle

financing, Automobiles dealerships, factoring services, consumer finance, and infrastructural

development. The MGF Developments brings international expertise, cutting-edge technology and global

scale of operations to deliver 100 percent satisfaction to its customers, clients and employees. The MGF

Developments vision is to be recognized as:

The preferred provider of services and integrated solutions in all its areas of operation

A diverse team of talented professionals with expertise in selected segments

An employer of choice, fostering a culture that values Dedication, Respect and Continuous  Improvement

MARKETING

What is marketing? There are many different definitions of marketing. Consider some of The following

alternative definitions:

“The achievement of corporate goals through meeting and exceeding customer needs better than The

competition”

“The management process that identifies, anticipates and supplies customer requirements efficiently and

profitably”

“Marketing may be defined as a set of human activities directed at facilitating and consummating

exchanges”

Which definition is right? In short, They all are. They all try to embody The essence of marketing:

• Marketing is about meeting The needs and wants of customers;

• Marketing is a business-wide function – it is not something that operates alone from other business

activities;

• Marketing is about understanding customers and finding ways to provide products or services which

customers demand

To help put things into context, you may find it helpful to often refer to The following diagram which

summarises The key elements of marketing and Their relationships:

MARKETING CONCEPT AND ORIENTATION

It is a fundamental idea of marketing that organisations survive and prosper through meeting the needs

and wants of customers. This important perspective is commonly known as the marketing concept. The

marketing concept is about matching a Company's capabilities with customer wants. This matching

process takes place in what is called the marketing environment. Businesses do not undertake marketing

activities alone. All These factors have to be taken into account as a business tries to match its capabilities

with The needs and wants of its target customers. An organisation that adopts The marketing concept

accepts The needs of potential customers as The basis for its operations. Success is dependent on

satisfying customer needs. What are customer needs and wants? A need is a basic requirement that an

individual wishes to satisfy. Customer needs are, Therefore, very broad. Customer needs are broad,

customer wants are usually quite narrow. A want is a desire for a specific product or service to satisfy The

underlying need. Consider this example: Consumers need to eat when they are hungry. What they want to

eat and in what kind of environment will vary enormously. For some, eating at McDonalds satisfies the

need to meet hunger. For others a microwave ready-meal meets the need. Some consumers are never

satisfied unless Their food comes served with a bottle of fine Chardonnay. Consumer wants are shaped by

social and cultural forces, The media and marketing activities of businesses. This leads onto another

important concept - that of customer demand: Consumer demand is a want for a specific product

supported by an ability and willingness to pay for it. For example, many consumers around the globe want

a Mercedes. But relatively few are able and willing to buy one. Businesses therefore have not only to

make products that consumers want, but They also have to make Them affordable to a sufficient number

to create profitable demand. Businesses do not create customer needs or The social status in which

customer needs are influenced. It is not McDonalds that makes people hungry. However, businesses do try

to influence demand by designing products and services that are

•Attractive

•Workwell

•Areaffordable

• Are available

Businesses also try to communicate The relevant features of Their products through advertising and other

marketing promotion.

MARKETING MIX

The marketing mix is generally accepted as The use and specification of The four Ps describing The

strategic position of a product in The marketplace. One version of The origins of The marketing mix starts

in 1948 when James Culliton said that a marketing decision should be a result of something similar to a

recipe. This version continued in 1953 when Neil Borden, in his American Marketing Association

presidential address, took The recipe idea one step further and coined The term 'Marketing-Mix'. A

prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which would see wide

popularity. The four Ps concept is explained in most marketing textbooks and classes.

DEFINITION

Although some marketers have added other Ps, such as personnel and packaging, the fundamentals of

marketing typically identifies the four Ps of The marketing mix as referring to:

Product -An object or a service that is mass produced or manufactured on a large scale with a specific

volume of units. A typical example of a mass produced service is the hotel industry. A less obvious but

ubiquitous mass produced service is a computer operating system. Typical examples of a mass produced

objects are the motor car and the disposable razor.

Price – The price is the amount a customer pays for the product. It is determined by a number of factors

including market share, competition, material costs, product identity and the customer's perceived value of

the product. The business may increase or decrease the price of product if other stores have the same

product.

Place – Place represents the location where a product can be purchased. It is often referred to as The

distribution channel. It can include any physical store as well as virtual stores on The Internet.

Promotion – Promotion represents all of The communications that a marketer may use in The

marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point

of sale. A certain amount of crossover occurs when promotion uses The four principal elements together,

which is common in film promotion. Advertising covers any communication that is paid for, from

television and cinema commercials, radio and Internet adverts through print media and billboards. One of

The most notable means of promotion today is The Promotional Product, as in useful items distributed to

targeted audiences with no obligation attached. This category has grown each year for The past decade

while most other forms have suffered. It is The only form of advertising that targets all five senses and has

The recipient thanking The giver. Public relations are where The communication is not directly paid for

and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.

Word of mouth is any apparently informal communication about The product by ordinary individuals,

satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often

plays an important role in word of mouth and Public Relations. Broadly defined, optimizing The

marketing mix is The primary responsibility of marketing. By offering The product with The right

combination of The four Ps marketers can improve Their results and marketing effectiveness. Making

small changes in The marketing mix is typically considered to be a tactical change. Making large changes

in any of The four Ps can be considered strategic. For example, a large change in The price, say from

$19.00 to $39.00 would be considered a strategic change in The position of The product. However a

change of $131 to $130.99 would be considered a tactical change, potentially related to a promotional

offer.

MARKET RESEARCH

Market research is for discovering what people want, need, or believe. It can also involve discovering how

They act. Once that research is complete it can be used to determine how to market your specific product.

MR-Anywhere is a very good platform for market research and analysis. For starting up a business There

are a few things that are important:

Market information

Market information is making known The prices of The different commodities in The market, The supply

and The demand. Information about The markets can be obtained in several different varieties and

formats. Examples of market information questions are:

Who are The customers?

Where are They located and how can They be contacted?

What quantity and quality do They want?

When is The best time to sell?

MARKET SEGMENTATION

Market segmentation is The division of The market or population into subgroups with similar motivations.

Widely used bases for segmenting include geographic differences, personality differences, demographic

differences, use of product differences, and psychographic differences.

Market trends

The upward or downward movements of a market, during a period of time. The market size is more

difficult to estimate if you are starting with something completely new. In this case, you will have to

derive The figures from The number of potential customers or customer segments.

But besides information about The target market you also need information about your competitor, your

customers, products etc. A few techniques are:

Customer analysis Risk analysis

Product research Choice Modeling

Advertising research Competitor analysis

CHAPTER 3

Research Methodology

3.1 OBJECTIVES OF THE STUDY

1. To know the feedback of customers regarding the services which are being provided by the company.

2. To understand the importance of client relationship.

3. To understand customer satisfaction regarding the products offered by the company.

4. To find out the problems faced by customer.

5. To know the customer satisfaction towards the after sales service offers by MGF Hyundai.

3.2 METHODOLOGY

Research can be defined to be search for knowledge or any systematic investigation to establish facts. The

primary purpose for applied research is discovering interpreting and The development of methods and

systems for The advancement of human knowledge on a wide variety of scientific matters of our world

and The universe.

Research Methodology can be defined as:

The analysis of the principles of methods, rules, and postulates employed by a discipline;

The systematic study of methods that are, can be, or have been applied within a discipline or

A particular procedure or set of procedures.

3.2.1 Population

The main emphasis of the study was on the customers of MGF Hyundai in New Delhi.

3.2.2 Sample Design

Marketing research can classify in one of three categories:

Exploratory research

Descriptive research

Causal research

These classifications are made according to the objective of the research. In some cases the research will

fall into one of these categories, but in other cases different phases of the same research project will fall

into different categories.

Exploratory research has the goal of formulating problems more precisely, clarifying concepts,

gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses.

Exploratory research can be performed using a literature search, surveying certain people about their

experiences, focus groups, and case studies. When surveying people, exploratory research studies would

not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and

who might be able to provide insight concerning the relationship among variables. Case studies can

include contrasting situations or benchmarking against an organization known for its excellence.

Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is

characterized by its flexibility.

● Descriptive research is more rigid than exploratory research and seeks to describe users of a product,

determine the proportion of the population that uses a product, or predict future demand for a product. As

opposed to exploratory research, descriptive research should define questions, people surveyed, and the

method of analysis prior to beginning data collection. In other words, the who, what, where, when, why,

and how aspects of the research should be defined. Such preparation allows one the opportunity to make

any required changes before the costly process of data collection has begun.

There are two basic types of descriptive research: longitudinal studies and cross-sectional studies.

Longitudinal studies are time series analyses that make repeated measurements of the same individuals,

thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not

necessarily representative since many people may refuse to participate because of the commitment

required. Cross-sectional studies sample the population to make measurements at a specific point in time.

A special type of cross-sectional analysis is a cohort analysis, which tracks an aggregate of individuals

who experience the same event within the same time interval over time. Cohort analyses are useful for

long-term forecasting of product demand.

● Causal research seeks to find cause and effect relationships between variables. It accomplishes this

goal through laboratory and field experiments.

The research associated to my project is EXPLORATORY RESEARCH.

3.2.3 Sample Size

How many people should be surveyed? Large samples give more reliable results than small samples.

However, it is not necessary to sample the entire target population or even a substantial portion to achieve

reliable results.

Samples of less than 1 percent of a population can often provide good reliability given a credible sampling

procedure.

A customer-based survey was conducted in which 100 people were asked to fill the questionnaire.

3.2.4 Sources of Information

Primary Sources

Secondary Sources

Primary Resources

Primary source, (also called original source), is a term used in a number of disciplines to describe source

material that is closest to the person, information, period, or idea being studied.

Secondary Sources

In library and information science, historiography and other areas of scholarship, a secondary source is a

document or recording that relates or discusses information originally presented elsewhere. A secondary

source contrasts with a primary source, which is an original source of the information being discussed.

Secondary sources involve generalization, analysis, synthesis, interpretation, or evaluation of the original

information.

3.2.5 Data Collection Tool

Primary Sources

Questionnaire – To analyze buying behavior and in order to gain an insight into the buyer need-

satisfaction level, a questionnaire was formulated and administered among 73 people.

3.3 LIMITATIONS OF THE STUDY

The sample size is limited to 100 of respondent.

Because the information collected from the customers by meeting them at their working places,

company service centers, the information extracted would not be sufficient from the respondents.

The opinion now about Hyundai may not be the same after some days because of new entrants.

The study is conducted for a period of 2 months.

Measurement of customer satisfaction is a complex subject, which uses non-objectives method,

which is unreliable.

CHAPTER 4

Findings and Analysis

I. ANALYSIS OF HYUNDAI CAR OWNERS ON THE BASIS OF AGE GROUP.

Age Group Respondents

Upto 25 Years 10

26-35 Years 25

36-45 years 30

46-60 20

60 and above 15

Total 100

ANALYSIS:

The maximum buyers of Hyundai cars as per the survey shows that the customers from the age group of

25-35 and 36-45.The people from age group below 25 and above 60 are less buyers of the vehicle

II HANDLING OF QUERIES AT THE TIME OF DILEVERY

ANALYSIS:

Most of the customers, about 86%, were satisfied with the handling of the queries while 14% were

dissatisfied with them.

III. INTERIOR OF THE CAR CLEAN AND UNDAMAGED AT TIME OF

DELIVERY.

ANALYSIS:

87% of the customers found car clean and undamaged at the time of delivery while 13% found the car to

be dirty or damaged.

IV. FAST, EASY AND CLEARLY EXPLAINED PAPERWORK.

ANALYSIS:

60% of the customers surveyed found the paperwork to be fast easy and clearly explained while 40%

found the paperwork as delayed and difficult.

V. ON TIME CAR DELIVERY WITHALL COMMITMENTS FULFILLED,

85

15

0

2040

6080

100

YES NO

ANALYSIS:

85% people received the car on time with all commitments fulfilled while 15% did not get the car on time.

VI. KNOWLEDGE AND BEHAVIOUR OF SALES CONSULTANT

ANALYSIS:

While 15% customers thought that the knowledge and behavior of the sales consultant was excellent only

7% thought they were bad. 53% considered them good while 25% rated them as average.

VII. EXPLANATION OF CAR FEATURES, WARRANTY AND SERVICE

SCHEDULE.

ANALYSIS:

22% customers thought that the car features warranty and service schedule was excellently explained

while 8% customers with dissatisfied. 52% considered them good while 15% rated them as average.

VIII. NEW CAR DELIVERY EXPERIENCE.

ANALYSIS:

55% customers thought that the new car delivery experience is good while 6% rated them as bad.

IX. POST SALES FOLLOW UP DONE REGULARLY.

ANALYSIS:

66% customers thought that the post sales follow up is good while 4% rated them as bad.

X. RESPONSE TO COMPLAINTS QUICKLY.

ANALYSIS:

65% customers thought that the response to customers complaints are good while 5% rated them as bad.

XI. OVERALL EXPIRIENCE AT HYUNDAI

ANALYSIS:

55% customers thought that the over all experience at Hyundai is good while 5% rated them as bad.

SWOT ANALYSIS

Strengths:

Convenient place.

Change of genuine spare parts.

Large space

Quality service.

Better after sales service.

Attending complaints promptly.

Maintaining customer relationship.

More sales promotional activities.

Weaknesses:

Thin mechanic force

Weak competitive strategies.

Lack of latest technology

High maintenance cost.

Delay in service

Opportunities:

Established brand name.

Increased purchasing power of Indian Consumer.

Growing demand

Launch of new products like i-30 in the pipeline.

Threats:

Increased competition.

Loss in market share.

Lack of latest market information.

CHAPTER 5

Conclusion

CONCLUSION

From the findings and analysis it is clear that Hyundai Car is highly preferred when compared to the other

brands of car in the same segment.

With the analysis through the survey conducted for a period of 2 months in Delhi on the consumer

satisfaction of Mgf Hyundai Car Dealer, the findings and analysis shows that 80% of the consumers are

happy with the dealer and also sales service and rest 20% of them says that they are dissatisfied.

Since each customer is like an asset for an organization the company should try to improve in the area of

dissatisfaction.

We know that getting new customer is double the cost of retaining the old customer so the company

should focus on retaining the old customers whom a in the future purchase the product or recommend

others to purchase the product. Thus they help directly or indirectly for the product sale.

Change is the only think to retain and attract the customers so the company should identify the needs and

dry to fulfill them.

CHAPTER 6

Recommendations

RECOMMENDATIONS

Mgf Hyundai should adopt defensive marketing strategy because as being one of the largest car dealer in

delhi market.

Hyundai must adapt new technology and train their employees.

Hyundai should adopt an offensive marketing strategy for attracting customers.

Better relationship with customers

India is 11th largest passenger car market in the world. India is the second-biggest market for small cars

after Japan. It accounts for 60 percent of the domestic market. Mgf hyundai must bank upon this aspect.

ANNEXURES

Annexure I – Questionnaire

Name: ……………………………………………………………………

Address: ……………………………………………...........................

Contact Number: ………………………………………………….......

Age: ………………………………………………………………………

QUESTIONS YES NO

1. Were all your queries handled during the delivery?

2. Were the interiors of the car clean and undamaged at the time of delivery?

3. Was the paper work fast easy and clearly explained?

4. Was the car delivered on time with all the commitments fulfilled?

QUESTIONS BAD AVERAGE GOOD EXCELLENT

5. How was the knowledge and behavior of sales

consultant?

6. Were the car features, warranty and service

schedule properly explained to you?

7. How was the ‘new car delivery ceremony’

experience?

8. Were the post sales follow up done regularly?

9. Was the response to your complaints quick, if

any??

Thank you so much for your time and support.

Annexure II

Product Mix of Hyundai

SANTRO

Ex-Showroom Prices for BAREILLY

Model Ex-Showroom Prices (Rs.)

Santro NonA/C (Solid) 274,186

Santro NonA/C (Metallic) 277,688

Santro GL (Solid) 340,871

Santro GL (Metallic) 344,365

Santro GLS (Solid) 361,449

Santro GLS (Metallic) 364,945

Santro GLS Audio (Solid) 369,229

Santro GLS Audio (Metallic) 372,726

I 10

Ex-Showroom Prices for BAREILLY

Model   Ex showroom prices (Rs)

i 10 1.1 IRDE

D-Lite (Solid) 347,645

Era (Metallic) 387,205

Magna (Solid) 398,085

i10 1.2L Kappa

Magna (Solid) 411,914

Sportz GLS(Metallic) 443,240

Magna AT(Solid) 458,217

Asta AT WS GLS(Metallic) 561,581

I 20

Ex-Showroom Prices for BAREILLY

Model (Petrol) Ex showroom price (Rs)

i20 Era (BS IV) 453,934

i20 Magna (BS IV) 493,935

i20 Sportz Option (BS IV) 518,904

i20 Sportz (BS IV) 533,934

i20 Asta (BS IV) 575,439

i20 1.2L Asta (O) w/ Sunroof (BS IV) 620,394

i20 1.4L Asta AT (BS IV) 750,409

i20 1.4L Era (BS IV) 575,100

i20 1.4L Magna (BS IV) 615,099

i20 1.4L Sportz Option (BS IV) 640,102

i20 1.4L Sportz (BS IV) 655,100

i20 1.4 Asta (BS IV) 697,103

ACCENT

Ex-Showroom Prices for BAREILLY

Model Ex-Showroom Prices (Rs.)

Accent EXECUTIVE 499,900

Accent EXECUTIVE - LPG 536,699

VERNA

Ex-Showroom Prices for BAREILLY

Model Ex-Showroom Price (Rs.)

Verna 1.6 VTVT (BS IV) 657,364

Verna 1.6 VTVT WITH AUDIO (BS IV) 675,804

Verna 1.6 SX VTVT (BS IV) 751,869

Verna 1.5 CRDi VGT (BS IV) 789,350

Verna 1.5 CRDi VGT WITH AUDIO (BS IV) 807,891

Verna 1.5 SX CRDi VGT (BS IV) 858,627

Verna 1.5 SX CRDi VGT AT (BS IV) 923,013

SONATA

Ex-Showroom Prices for BAREILLY

Model Ex-Showroom Prices (Rs.)

Sonata 2.4 MT FL with 6 Air Bag 1,463,478

Sonata CRDi (MT) With 6 Air Bag 1,612,300

Sonata CRDi (AT) With 6 Air Bag 1,713,994

BIBLIOGRAPHY

Bibliography

1) Books

Kothari, C.R. Research Methodology, 3rd edition, 1997, Vikas Publishing House Pvt. Ltd., New Delhi.

Kotler, Philip Marketing Management, 13th edition, 2009, Dorling Kindersley (India) Pvt.

Ltd., South Asia.

Varshney & Gupta; Marketing Management, Sultan Chand & Sons, 2005.

Gupta, S.L., Marketing Research, Excel Books, 2004.

Kotler & Armstrong; Principles of Marketing Management, Prentice hall India, 2003.

Aaker; Marketing Research, John Willey & Sons, 2001.

2) Newspapers

Times of India, 04/05/13, New Delhi

Times of India, 06/06/13, New Delhi

3) Websites

http://www.nytimes.com

http://money.cnn.

http://www.automobile.com