Project Report

On

STUDY OF CUSTOMER SATISFACTION AT

MGF HYUNDAI MOTORS LIMITED

Submitted in Partial Fulfillment for the Award of the

Degree of Bachelor of Business Administration 2008-2011

Under the Guidance of: Submitted By:

Rupali Pardasani Puneet Kumar Gupta

Assistant Professor Enrollment No. 1221471708

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

STUDENT DECLARATION

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

Satisfaction at MGF HYUNDAI MOTORS LTD.” under the guidance of Rupali

Pardasani in partial fulfillment of the requirement for the award of Degree of Bachelor of

Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi.

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

Date: Signature:

Place:Delhi Name: Puneet Kumar Gupta

Enrollment No.:1221471708

CERTIFICATE

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

MGF HYUNDAI MOTORS LTD.” is an academic work done by Puneet Kumar Gupta

submitted in the partial fulfillment of the requirement for the award of the degree of

Bachelor of Business Administration from Maharaja Agrasen Institute of Management

Studies, Delhi, 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 : Rupali Pardasani

Designation : Assistant Professor

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

Page No.

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 COMANY’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.  

MGF DEVELOPMENTS

The MGF Developments has been making a difference to Indian lifestyle and

development for over seven decades. Our longevity and success represents an unmatched

commitment to our customers, our business and our employees. From being the pioneers

in the Hire Purchase and Leasing business, the MGF Developments today is making a

difference in Real Estate Development and Automobiles Distribution ventures across

India.  

ABOUT MGF

MGF Developments is a leading player in the field of retail real estate and property

development in India, and has brought in international standards in commercial

complexes and shopping malls. It was first in the sector to introduce the concept of

condominiums in the country. Today, it is one of the largest shopping mall developers in

the National Capital Region, with almost 3 million sq.ft. of retail space under

development. Some of MGF Developments’ landmark projects include the Metropolitan,

The Plaza and the City Square Mall in Gurgaon in 2003. It is an organization that in

many ways has been a model for a host of new companies entering the field.

MGF Hyundai is one of the leading names in Automobiles dealership of Hyundai. Motor

India Ltd located at 1, Jhandewalan, Faiz Road, New Delhi. The centralized location of

the showroom effectively covers whole of Delhi in North, East, West & South and

providing dedicated professional after sales service to our esteemed customers by having

service centers at G.T. Karnal Road, Patparganj, Mayapuri and Okhla.

MGF Mayapuri service station is also the training hub for all North Indian Hyundai

Service stations.

MGF Hyundai is having highly professional & motivated team, dedicated leaders

providing their prompt, efficient services to our customers with utmost priority being the

Quality of Service and Customer Satisfaction. Our longevity and success represent an

unmatched commitment to our esteemed customers, solid knowledge of the Indian

Market and to a certain extent our competitive advantage with our large customer

database, distribution network and customer services.

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 all-embracing function that links The business with customer needs and wants in

order to get The right product to The right place at The right time”

“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. They face threats from

competitors, and changes in The political, economic, social and technological

environment. 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.

People have basic needs for food, shelter, affection, esteem and self-development. Many

of These needs are created from human biology and The nature of social relationships.

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 AT MGF ON THE BASIS OF THEIR

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.

85

15

0

2040

6080

100

YES NO

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,

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 EXPIRIENCE.

IX. POST SALES FOLLOW UP DONE REGULARLY.

X. RESPONSE TO COMPLAINTS QUICKLY.

XI. OVERALL EXPIRIENCE AT MGF HYUNDAI

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

Annexure II – Product Mix of Hyundai

Annexure I

Questionnaire

Name: ……………………………………………………………………

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

......................................................................................................

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

Age: ………………………………………………………………………

(Questionnaire will be used for academically only.)

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 BA

D

AVERAG

E

GOO

D

EXCELLEN

T

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

Hyundai Car Models

SANTRO

Ex-Showroom Prices for DELHI  

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 DELHI    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 Price for DELHI

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 DELHI  

Model Ex-Showroom Prices (Rs.)

Accent EXECUTIVE 499,900

Accent EXECUTIVE - LPG 536,699

VERNA

Ex-Showroom Price for DELHI  

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 DELHI  

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, 04/05/09, New Delhi

Times of India, 06/06/09, New Delhi

3) Websites

http://www.nytimes.com/2004/08/04/business/global-growth-gives-Hyundai-29-rise-in-

profit.html

http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402324/index.htm

http://www.automobile.com/industry-report-Hyundai-plans-for-hybrid-alternative-in-

100-percent-of-models-in-future.html