Project Report

On

MARKET ANALYSIS OF HYUNDAI MOTOR COMPANY

Submitted in partial fulfillment of the requirements for award of

Bachelor of Business Administration

OfGuru Gobind Singh Indraprastha University, Delhi.

Submitted byNISHANT BAGHEL

______________________________________

Enrolment No: 11510601710

Of Ansal Institute of Technology

Gurgaon

Guided by Prof.: MS. Garima Chauhan

1

Certificate of Internal Guide

This is to certify that the project titled “Market Analysis of Hyundai Motor

Company” is a bonafide work carried out by NISHANT BAGHEL a

candidate for the award of Bachelor of Business Administration of

GGSIP University, Delhi under my guidance and direction.

Signature of guide

Date: 16/04/13 Name: Ms Garima Chauhan

Place: Gurgaon Designation: Sr. LecturerInstitute: AIT, Gurgaon

Signature of External guide/Examiner_______________________

Date: Name:

Place: Designation:Institute:

2

ACKNOWLEDGEMENT

The present report is based on the study of “Market Analysis of Hyundai Motor Company”.

First of all, I express my thanks to Ms. Garima Chauhan for his invaluable guidance and

support.

A special note of thanks goes to all the members of Reliance Industries Ltd., who have provide

me valuable information Booklets and other required information’s which form the basis of this

report. I am very thankful to my parents for their support.

I am also highly thankful to my parents, family members, relatives, friends and colleagues who

provided me their much needed support and inspiration and when required during the preparation

of this project.

NISHANT BAGHEL

(11510601710)

3

CONTENTS

S.No Topic Page No.

1. Introduction (Industrial Background) 5-6

2 Introduction to the Problem

Introduction to the Topic

Objective of the Study

Purpose & Scope of the Study

7-12

3. Profile of the Company 13-29

4. Review of Literature 30-34

5. Methodology

I. Data Collection Method

II. Sampling Plan

35-38

6. Data Analysis and Interpretations 39-52

7. Findings 53-55

8. Conclusions & Recommendations 56-57

9. Limitations 58-60

10. Appendix

Annexure

Bibliography

61-69

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CHAPTER – 1

INTRODUCTION

5

HYUNDAI MOTORS: COMPANY HISTORY

Hyundai (Korean pronunciation is a global conglomerate company, part of the Korean Chaebol,

that was founded in South Korea by one of the most famous businessmen in Korean history: 

Chung Ju-yung . The first Hyundai Company was founded in 1947 as a construction company.

Two of the best-known Hyundai divisions are Hyundai Motor Company, the world's fourth

largest automobile manufacturer by volume as of January 2011, and Hyundai Heavy Industries,

the world's largest shipbuilder. Other companies currently or formerly controlled by members of

Chung's extended family may be loosely referred to as a part of the Hyundai chaebol.

In 1998 Hyundai bought Kia Motors, the oldest South Korean car company which had to file for

bankruptcy due to the 1997 Asian financial crisis. Kia is (as of 2011) somewhat independent of

Hyundai motors, as Hyundai no longer owns an outright majority of Kia shares.

Hyundai Group underwent a massive restructuring following the 1997 East Asian financial

crisisand Chung Ju-yung's death in 2001. Chung was the CEO and directly in control of the

company until the end of his life. Today many companies bearing the name Hyundai are not part

of or legally connected to the Hyundai Group. These companies include Hyundai Kia

Automotive Group, Hyundai Department Store Group, Hyundai Heavy Industries Group,

and Hyundai Development Group. However, all of the named companies are run by Chung's

sons or their heirs.

6

CHAPTER - 2

INTRODUCTION TO THE PROBLEM

INTRODUCTION TO THE TOPIC

7

Today’s society is warm with urbanization and demonstration effect. With a view towards it,

there are drastic changes coming up in all sectors even in the automobile Industries. The

following information gives an insight about it.

In the present context the companies operate on the principle of natural selection –

“Survival of The Fittest”. Only those companies will succeed which at best match to the current

environmental imperatives – those who can deliver what people are ready to buy, according to

their convenience.

But real marketing does not involve the art of selling what the manufacturers make.

Organizations gain market leadership by understanding consumer needs and finding solutions

that delight consumers. If customer value and satisfaction are absent, no amount of promotion or

selling can be compensating. Hence the aim of marketing is to build and manage.

There are four major, powerful themes that go to the heart of modern marketing theory

and practice, they are:

1. BUILDING AND MANAGING PORFITABLE CUSTOMER RELATIONSHIPS.

2. BUILDING AND MANAGING STRONG BRANDS.

3. HARNESSING NEW MARKETING TECHNOLOGIES IN THIS DIGITAL AGE.

4. MARKETING IN A SOCIALLY RESPONSIBLE WAY AROUND THE GLOBE.

What marketing is what it does and what it offers?

“Marketing is a social and managerial process whereby individual and groups obtain what they

need and want through creating and exchanging products and value with others.”

“Marketing management is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that satisfy

individual and organizational goals.”

“Marketing offers some combination of products, services, information, or experiences offered to

a market to satisfy a need or want” Marketing is an orderly and insightful process for thinking

about and planning for markets. The process starts with researching the market place to

understand its dynamics. The marketer uses research methodologies to identify opportunities,

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that is, to find individuals all groups of people with unmet needs or latent interest in some

products or service.

The marketing process consists of the following:

1. Analyzing marketing opportunities.

2. Developing marketing strategies.

3. Planning marketing programs

4. Managing the marketing efforts.

Before taking any decision and achieving the goals, it has to make analysis of what to do, how to

do, when to do, where to do and who is to do it. This is nothing but strategic planning. Goals

indicate what a business unit wants to achieve whereas strategy is how to get there.

Marketing strategies in simple terms are the complete and unbeatable plans designed specifically

for attaining the marketing objectives of the firm. Marketing can be called as a game plan for

achieving its goals. Strategy choice will depend on whether the firm or the marketer plays the

following roles:

Market leader

A challenger

A follower

A niche

The identification of objectives, both in quantitative and qualitative terms, is an essential

backdrop to strategy formulation. Goals have a quality and time frame attached to them. These

are typically spelt out in terms of financial return, market share, market presence, etc. Thus, the

concept of market oriented strategic planning arises with the link between the products the

manufacturer is dealing in and the market conditions. In this direction, our study deals only with

the marketing strategies i.e. promotional strategies of the Ford automotives.

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OBJECTIVE OF THE STUDY

A market analysis of the HYUNDAI car with the respect to its COMPETETOR like MARUTI

SUZUKI, TATA etc.

Sub-objectives:

To identify the critical factors, considered by the prospective customers while

purchasing the Hyundai car.

To identify the perception of the existing users of the Hyundai motors.

To find the market share (distribution) of the Hyundai motors.

To find the market analysis trough SWOT ANALYSIS, PRODUCT SPECIFICATION

AND MARKET SEGMENTATION.

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PURPOSE FOR THE STUDY

To know the all market competitor of the product.

To understand the all features of product, which I should be promote.

To study history growth and development of HYUNDAI MOTOR in Hyderabad.

To provide important lead on customer convenience front to HYUNDAI MOTOR, which

would be helpful in making increase the sell?

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SCOPE OF THE STUDY

The study is conducted for developing the mutual relationship with all private and

nationalized banks.

The study covers the customer’s perceptions and their most used product.

The study covers the customer’s perception for auto finance.

The study covers the bankers perception, which automotive company they are

sanctioning more.

The study was conducted to approach the customer those who are approaching for car

loan.

12

CHAPTER – 3PROFILE OF THE

COMPANY

HYUNDAI MOTORS: COMPANY PROFILE

13

Hyundai Motor Company has a presence in 168 nations. Hyundai Motor India Limited (HMIL)

is a wholly owned subsidiary of Hyundai Motor Company, S. Korea and is the second largest

and the fastest growing car manufacturer in India.

The Korean company set up its subsidiary in India in 1996. HMIL’s fully integrated state-of-the-

art manufacturing plant near Chennai boasts some of the most advanced production, quality and

testing capabilities in the country. The company is investing an additional US$ 220 Mn to

expand capacity at this plant to 250,000 units a year in line with its recent designation as HMC’s

global export hub for small cars and to cater to its upcoming product launches India.

HMIL presently markets over 18 variants of passenger cars across four models, the Santro in the

B segment, the Accent in the C segment, the Sonata in the E segment and the Terracan in the

SUV segment. The company recorded combined sales of 150,741 units during calendar year

2003 with both Accent & Santro emerging leaders in their respective segments. The company’s

newest launch in India is the Accent Getz in B segment

HMIL was recently awarded the benchmark ISO 14001 certification for its sustainable

environment management practices.

Hyundai Motors is planning to shift certain research and development (R&D) facilities from

Korea and while basic R& D functions will remain in Korea, India will become the R&D hub in

specific areas such as engine, body design or transmission, taking advantage of the available

technology skill in India.

HMIL has sold over 500,000 cars in a record time of just over 5 years since commencement of

commercial production in September 1998 and is all set to emerge as one of the largest exporters

of passenger cars and components out of India.

Between 2003 and 2006 the company will invest $300 million in its Indian operations. It will

increase the assembly line as well as the capacity from the present level of 1.2 lakh to 1.5 lakh

units in the next fiscal and to 2 lakh units between mid-2003 and 2006. Hyundai is looking at

exports of 40,000 units, mostly to Europe, from India.

The planned capital infusion will also be used to expand capacities and fund product launch, the

multi-purpose vehicle Carens. The Carens is expected to be introduced with a price tag of about

Rs 10 lakh. The firm is also exploring the feasibility of rolling out another sports utility vehicle

Santa-Fe.

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The company is likely to emerge as one of the top five auto giants in the world in the future.

Hyundai In India

Hyundai Motor India Limited is currently the second largest carmaker after Maruti Suzuki and

largest auto exporter in India. It is making India the global manufacturing base for small cars.

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

Other models include Getz Prime, Accent, Terracan, second generation Verna, Tucson, Santa Fe

and the Sonata Transform. Hyundai has two manufacturing plants in India located at

Sriperumbudur in the Indian state of Tamil Nadu. Both plants have a combined annual capacity

15

of 600,000 units.In the year 2007 Hyundai opened its R&D facility in Hyderabad Andhra

pradesh, employing now nearly 450 engineers from different parts of the country.Basically the

Hyundai Motor India Engineering (HMIE) gives technical & engineering support in Vehicle

development and CAD & CAE support to Hyundai's main R&D center in Namyang Korea. In

2010, Hyundai started its design activities at Hyderabad R&D Center with Styling, Digital

Design & Skin CAD Teams.

South Korean car maker Hyundai, which as per reports is also world’s fastest growing automaker

and fourth largest car manufacturer across the globe, has launched a new car, Hyundai EON in

October in India.[45] Eon is an entry-level car but at the same time it is very spacious with a large

boot. The car has 814 cc engine, promising to deliver the mileage of over 20 km per litre. The

new Hyundai’s small car is sure to stir competition in the under Rs 3 lakh price range. Hyundai

EON price has kept its price around Rs 2.5 lakh.

SALES OF HYUNDAI MOTORS LTD. IN INDIA

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In year 2010 HMIL grew by 7.8% cumulatively registering total sales of 6,03,819 units as

against 5,59,880 units of 2009 with domestic sales surging by 23.1% over 2009. Domestic sales

accounted for 3,56,717 units in 2010 as against 2,89,863 in the year 2009. Overseas sales

accounted for 2,47,102 units as against 2,70,017 units in 2009 which reflects a decline of 8.5%

for the calendar year 2010.

 

PRODUCT CATEGORY AND ITS DIMENSION

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1) SMALL SEGMENT CARS:

HYUNDAI - SANTRO XING

LENGTH 3565mm

BREATH 1525mm

HEIGHT 1590mm

WHEEL BASE 2380mm

CURB WEIGHT 854kg(MT), 868kg(AT)

HYUNDAI – i10

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LENGTH 3565mm

BREATH 1595mm

HEIGHT 1550mm

WHEEL BASE 2380mm

CURB WEIGHT 1010kg

HYUNDAI - Eon

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LENGTH 3495mm

BREATH 1595mm

HEIGHT 1550mm

WHEEL BASE 2380mm

CURB WEIGHT 940kg

2) LARGE SEGMENT CARS (SUV’s):

HYUNDAI –SANTA FE

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LENGTH 4676mm

BREATH 1615mm

HEIGHT 1725mm

WHEEL BASE 2700mm

CURB WEIGHT 1676kg

HYUNDAI – TUCSON

21

LENGTH 4400mm

BREATH 1820mm

HEIGHT 1685mm

WHEEL BASE 2640mm

CURB WEIGHT 1440kg

22

SWOT ANALYSIS A scan of the internal and external environment is an important part of the strategic planning

process. Environmental factors internal to the firm usually can be classified as strengths (S) or

weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats

(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm’s resources and

capabilities to the competitive environment in which it operates. AS such, it is instrumental in

strategy formulation and selection. The following diagram shows how a SWOT analysis fits into

an environmental scan:

SWOT Analysis Framework

STRENGTHS:

23

Environmental Scan

/ \

Internal Analysis External Analysis

/ \ / \

Strengths Weaknesses Opportunities Threat

!

SWOT Matrix

A firm’s strengths are its resources and capabilities that can be used as a basis for developing a

competitive advantage Examples of such strengths of HYUNDAI:

Hyundai have a good reputation among customers.

Well established co. since 1993

Trusted brand in INDIA.

Strong distribution network all over India.

It has the maximum number of service station all over.

Exclusive access to high grade natural resources.

WEAKNESSES: The absence of certain strengths may be viewed as a weakness. For example, each of the following

may be considered weaknesses;

Lack of patent protection.

The company has low brand recognition in A segment and passenger car.

High cost structure.

Lack of access to the best natural resources.

Lack of access to provide the services for dealing of second hand cars.

In some case, a weakness maybe the flip side of a strength . Take the case in which a firm has a

large amount of manufacturing capacity. While this capacity may be considered a strength that

competitors do not share, it also may be a considered a weakness if the large investment in

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manufacturing capacity prevents the firm from reacting quickly to changes in the strategic

environment.

OpportunitiesThe external environmental analysis may reveal certain new opportunities for profit and growth.

Some examples of such

Opportunities include;

An unfulfilled customer need.

Arrival of new technologies.

Loosening of regulations.

Removal of international trade barriers.

Threats:Changes in the external environmental also may present threats to the firm. Some examples of

such threats include;

Shifts in consumer tastes away from the firms products.

Emergence of substitute products.

New regulations.

Increased trade barriers.

The SWOT Matrix

25

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a

better chance at developing a competitive advantage by identifying a fit between the firm’s

strengths and upcoming opportunities. In some cases , the firm can overcome a weakness in

order to prepare itself to pursue a compelling opportunity.

To develop strategies that take into account the SWOT profile, a matrix of these factors can be

constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below;

SWOT / TOWS Matrix

Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the company s strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce its

vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making

it highly susceptible to external threats

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MARKET STRATEGY IMPLEMENTATON

1) Product development with vendors: In case product development part a team of

engineers would be talking to its major vendors for reducing the cost of equipments supplied

by them. These vendors are the major suppliers of Hyundai components such as Deep

Hyundai, Hans and Himgiri etc

.

2) Advertising: The advertising may involve the process of advertisements on Television,

Radio, Newspaper, Auto Magazines and events like Auto Expo

a) T.V. Advertising ; T.V. advertising may involve the advertisement at peck hours of

television viewing or during the cricket match time in the slog over which in turn may

lead to maximize exposure and thus maximum impact on final buyers.

b) Advertising in news paper (twice in weak); The concept of advertising on newspaper

may increase the sale since the newspaper would be able to explain the characteristics

and features of cars, because it is an easy way to reaching the decision makers and thus in

turn may directly influence their decision.

c) Advertising on Radio; with FM catching more and more popularity amongst people

especially people love to listen to FM while driving. Thus this could be another mean of

influencing the prospects for services like True Value at the time of 1hour in the morning

and 1 hour in the evening when the people are actually traveling towards their office or

coming come back.

d) Auto Magazines (monthly) and Auto expo (yearly); The Company would advertise on

auto magazine like Auto cars, Motoring etc where entire information on product and

27

newer features would be explained. The cover page or back page advertisement would be

used for PRODUCT COMMUNICATION

.

3 Celebrity Endorsement; This entirely depends on the company’s policy whether they

would like to spend a fixed amount (which may depending upon the

personality). The celebrity would be the Brand Ambassador for the company

like Actor SHAH RUKH KHAN is the Brand Ambassador for Hyundai

Santro.

4 Incentives / Penalty on meeting a sales target: The company would work with

dealers with the policy of carrot and stick which may involve incentives like a foreign tour

package, gifts and monetary incentives such as increased margin for meeting a sales target or

working with dealers on contractual basis rather than a permanent basis if they are not able to

reach sales over a period of time.

5 Financing through various Banks: currently Hyundai has its tie up with SBI

financing and the process is limited to getting the car financed through 9000 branches which the

firm would go out to increase along with the financing tie ups with other banks in a way

increasing the reach and more customers.

For rural market a finance scheme for farmers would provide for installments to coincide with

the times when his crop is sold in the market .i.e. CROP CYCLE (paid every six months after the

rabi and kharif harvests).

6 Assemble line modifications: Since in A1 and A2 segments there is need of

change in the design and specification this would involve change in assembly line.

7 Vehicle for corporate: Their N2N feet management system would be used for this purpose

in which their main purpose would be to finance the vehicles for corporate.

28

Achievements of Hyundai Motors India Ltd :

Hyundai Santro Crosses the Million Mark; HMIL achieved yet another mile stone by

selling more than 1 million Santro in the domestic and Export market since its introduction in 1998.

Santro is India s first high Technology compact car. Commenting on the achievement, H.S. Lheem,

MD, HMIL, said,” This new record of selling 1 million Santro exemplifies the unmatched equity of

the Santro brand across the world. Santro offers refined ride, impressive fuel economy and

comfortable interiors.

Hyundai’s 2nd all India free car care clinic; HMIL, recently Conducted its second

nationwide free car care clinic campaign from Jan29th- Feb 11th 07 at over 310 Hyundai dealer

workshops across the country. The clinic was conducted to facilitate Hyundai car better and at a

reasonable cost. The Free Car Care Clinic offered a comprehensive 80-point thorough examination of

the engine compartment, under body, AC, body, interior and exterior etc. Customers also availed free

car wash and attractive discounts ranging between 5to20 percent with a special discount on the

Emblem. Special discounts were offered on service merchandising like engine flush, anti- rust coating,

engine de-carbonization and car polish.

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CHAPTER-4

REVIEW OF

LITERATURE

30

AN OVERVIEW: AUTOMOBILE INDUSTRY IN INDIA

The automobile industry is one of the largest in terms of employment and value addition. As a

leader in product and process technologies for the manufacturing sector, it has been accepted as

one of the important drivers of economic growth.

Global trends indicated that the auto market has moved from the growth and development phase

to the consolidation phase. The Japanese automobile majors, besides technological innovations,

implemented some modern management philosophies, which were gradually adopted by the

automobile industry of the United States and other European countries. Currently, almost fifty

percent of the global passenger car production comes from three countries, viz., the US (20%),

Japan (19%) and Germany (12%). In the commercial vehicle category, the share of the US is 46

per cent followed by Japan (11%) and China (9%). In both these categories of vehicles, India’s

share in the total world production is 1 per cent.

The first motorcar on the streets of India was seen in 1898. Then for the next fifty years, cars

were imported to satisfy domestic demand. Between 1910 and 20's the automobile industry made

a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The

import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in

1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first

car in the country by assembling 'Dodge Desoto' and 'Plymouth' cars at its Kurla plant. Hindustan

Motors (HM), which started as a manufacturer of auto components graduated to manufacture

cars in 1949.

Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. ruled Indian roads

for many of the initial years

In 1952 the GOI asked assembly plants, which did not have plans to set up manufacturing

facilities, to shut operations. As a result General Motors, Ford and other assemblers closed

operations in the country. The year was 1954 and this decision of the government marked a

turning point in the history of the Indian car industry. The GOI also had a say in what type of

vehicle each manufacturer should make. Therefore, each product was safely cocooned in its own

31

segment with no fears of any impending competition. Also, no new entrant was allowed even

though they had plans of a full-fledged manufacturing program. The restrictive set of policies

was chiefly aimed at building an indigenous auto industry. However, the restrictions on foreign

collaborations led to limitations on import of technology through technical agreements. In the

absence of adequate technology and purchasing power, the car industry grew at a snail's pace in

the 60’s. The demand for cars in 1960 was to the tune of 15,714. In the next two decades the

number increased to 30,989 i.e. a CAGR of only 3.5 per cent. 

In the early 80's, The GOI entered the car business, with a 74% Stake in Maruti Udyog Ltd

(MUL), the joint venture with Suzuki Motors Ltd of Japan. The very face of the industry was

changed for ever in 1983 with the entry of public sector Maruti Udyog in a joint venture with the

Suzuki Corporation of Japan. Car sales grew by 42 per cent in 1985 after Maruti 800 was

launched. Thanks to MUL car sales registered a CAGR of 18.6 per cent i.e. from 1981 to 1990.

In 1985, the GOI announced its famous broad banding policy which gave new licenses to broad

groups of automotive products like two and four-wheeled vehicles. Though a liberal move, the

licensing system was still very much intact. MUL introduced 'Maruti 800' in 1983 providing a

complete facelift to the Indian car industry. The car was launched as a "peoples car" with a price

tag of Rs40, 000. This changed the industry's profile dramatically. Maruti 800 was well accepted

by middle-income families in the country and its sales increased from 1,200 units in FY84 to

more than 200,000 units in FY99. However in FY2000, this figure came down to 189,184 units,

due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'.

MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid-sized

cars. The company has single handedly driven the sales of cars in the country from 45,000 in

FY84 to 409,951 cars by FY2000, cornering around 79.6% market share. With increasing

competition from new entrants, this market share has plummeted to almost 62% in FY2000.

A brief 3-year downturn till 1993 and car sales bounced back to register a 17 per cent growth rate

in 1997.Since then, the economy slumped into recession and sales of cars remained quite

stagnant FY97 and FY99. The Financial year 2000 has, however, been the turnaround year for

the Auto industry with the economy looking up. The industry achieved volume sales of 638,815

units as against 409,951 units in 1999, thus, crossing the half million mark for the first time.

Therefore, at present, the CAGR between FY96 and FY2000 stands at 16.6 per cent. (Former

finance minister, Man Mohan Singh's liberalization policy was major driver which led to

32

industry undergoing this complete transformation.) Overwhelmed by newer models from new

and existing players had to an impressive shift from a constrained supply situation to a surplus

one. Within the past decade, about 30 models have entered the Indian market with a number of

models still awaiting launch. The de-licensing of auto industry in 1993 opened the gates to a

virtual flood of international automakers into the country with an idea to tap the large population

base of 950mn people. Also the lifting of quantitative restrictions on imports by the recent policy

is expected to add up to the flurry of foreign cars in to the country.

Many companies have entered the car manufacturing sector, to tap the middle and premium end

of car industry. The new entrants are Daewoo (Matiz), Telco (Indica) and Hyundai (Santro) in

upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and Fiat have entered

the mid-sized car segment and Mercedes-Benz is in the premium end of market. Car

manufacturers like Malaysia based Proton are also in line to hit the Indian ramp.

The Indian passenger car industry is relatively recent in origins. Except the ubiquitous

Ambassador and the Premier Pad minis there was not much moving around with an Indian tag.

The restrictive policies of the Indian government did not allow foreign players to set shop in

India and in the absence of adequate technology and purchasing power it resulted in the slow

growth of the industry even after a long time since independence. The demand for cars increased

from 15,714 in FY60 to 30,989 in FY80 at a CAGR of only 3.5%. The entry of Maruti Udyog

Ltd, a GoI JV with Suzuki of Japan, in 1983 with a so-called "peoples" car and a more favorable

policy framework resulted in a CAGR of 18.6% in car sales from FY81-FY90. 

After witnessing a downturn from FY90 to FY93, car sales bounced back to register 17% growth

rate till FY97. Since then, the economy slumped into recession and this affected the growth of

the   automobile industry as a whole. As a result car sales remained almost stagnant in the period

between FY97 and FY99. However, with the revival in the economy, FY2000 turned out to be a

significant year for the industry in which it recorded volume sales of   638,815 units as against

409,951 units in the previous year. Thus, the CAGR for the period FY96 - FY2000 stands at

16.6%.

On the basis of price, the Indian car industry can be classified into economy or the 'small' car (up

to Rs0.3mn), mid-size (Rs0.3-0.5mn), luxury car (Rs0.5-1mn) and super luxury car segments

(above Rs1mn). Economy segment dominates with a market share of about 80% of total car sales

in FY2000.

33

Taking into consideration the rise in expendable income levels and necessity of personal

transportation as a result of inefficient or deficient public transportation means, the demand for

cars is expected to increase. FY2000 was an indicator of the growth phase to follow, registering a

20-year high growth rate of 56%. The second highest growth was recorded in 1985 at 42% when

Maruti had entered the market. Riding on the popularity of the small car segment, coupled with

the boost in sales of the mid size segment, total sales grew by 56%. However, such high level of

growth is highly unsustainable in the long run given the fact that there is an as yet unutilized

capacity in the industry. This would make the question of survival important and carmakers

would have to play their cards well to remain in contention. Moreover, sales growth in FY2000

was calculated on a lower base of FY99.

Exports are expected to increase as a result of over capacity in the domestic car industry and the

government's policy to bring in a more liberal regime on the foreign exchange front. The flood of

new entrants into the car industry as a result of liberalization has led to a complete

transformation of the sector. The car segment is flooded with new models from new and existing

players, a visible shift from a constrained supply situation to a surplus. In the last decade or so,

as many as 30 models have invaded the market making it a case of embarrassment of

riches. Moreover a lot many models are waiting to hit the ramp by the end of the year.

The capacity of car production has increased substantially in the last three years and is expected

to grow manifold in the coming years. The low capacity utilization will force a marketing war

between the car manufacturers. The US$ 6.8 billion Indian car industry has registered a CAGR

of 17% between 1998-2003 and is projected by ACMA (Auto Components Manufacturers

Association of India) to grow at a 15% CAGR till fiscal 2012. The car buyer will be the major

beneficiary of the marketing war in the segment as they will be able to get technologically better

products at good terms and conditions. But with an expected shake out, the threat of

discontinuation of a model is also high.

34

CHAPTER 5

METHODOLOGY

RESEARCH METHODOLOGY

35

MARKETING RESEARCH:

Definition of marketing research as approved as by the board of directors of the association of

American marketing association is: “Marketing research is the function which links the customer

and public to the marketer through information – information used to identity and define

marketing opportunities and problems generate define and understanding of marketing as

process”. Simply, marketing research is the systematic design collection analysis and reporting

of data finding relevant to a specific marketing situation facing the company. Carefully planning

through all stages of the research is a necessity. Objectivity in research is all-important. The

heart of scientific method is the objective gathering of the information. The function as

marketing research within the company as to provide the information and analytical necessary

for effective.

Planning of the future marketing activity.

Control of the marketing operation in the present.

Evaluation of marketing results.

A research may undertake any of the three types of research investigation depending upon the

problem. These types of research included:

1. Basic research

2. Applied research

3. Designated Fact Gathering

APPLIED RESEARCH:

36

It is attempt to apply the various marketing technique, which have been developed as research,

first and later on they become applied research techniques. It is on attempt to apply the basic

principles and existing knowledge for the purpose of solving operational problems.

STEPS IN MARKETING RESEARCH:

Marketing research process can be out through following steps.

Define the problems and research objectives

Develops the research plan

Collect the information

Analysis and interpretation

Present the finding.

PRIMARY DATA:

It consists of information collected for the specific purpose, survey research was used and he all

the details of Ford and their competitors were contacted. Survey research is the approached

gathering description and information.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere having been

collected for another purpose. Any researcher begins the research work by first going through

secondary data. Secondary data includes the information available with company. It may be the

findings of research previously done in the field. Secondary data can also be collected from the

magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION:

The study includes in it the data collected through both primary and secondary sources.

Primary data is collected with the help of structured questionnaire and personal meeting.

37

Questionnaire is administered on the sample respondents. However there are certain cases where

personal interactive method is followed with customers to find the satisfaction level.

RESEARCH METHODOLOGY:

The respondents are the car owner of any company or intender of car and different banks

managers of different branches. The survey was carried in my collage with the sample size of

100. The survey was carried out with the help of a structured questionnaire, which help in

accomplishing the research objective. The respondents by means of personal interview

administer during the event shows this structured questionnaire.

38

CHAPTER 6

DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS

39

FOR EXISTING CUSTOMER OF CARS

Qu.-1 Which car do you own?

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr02468

101214161820

maruti zen

santro zing

tataindica

fiat palio

This first question was in the questionnaire to know, which person is having which car? With the

help of this question we can know about the distribution of B segment car in Dwarka region. In

the answer of this question 15 people said Maruti Zen, 20 people said for Santro Zing. 5 people

said Fiat palio. 10 people said Indica. IN this question we see that santro and Zen are highly

distributed in the Dwarka region.

Qu.-2 Why did you buy this car?

40

0

5

10

15

20

25

30

35

12

7

17 17

29

810

Reasons to buy car

reduce the risk of accidentincrease in the incometo get comfortchange in life style and per-sonalityfamily needto cover distance in less timepersonal use

options

no. o

f the

peo

ple

This question was there in the questionnaire to check why did person buy the car? What was the

need to buy the car? In the response 29 people said because of “family need”. They bought the

car because of the need of the family. Then after 17 people said, “to get comfort” and “increase

in the income”. So, it can be concluded that most of the people bought the car because of need of

family and get comfort.

.Qu.-3 Why did you purchase this car?

I analysis this question on each and every car, which was opted by the respondents. Taking

Hyundai Santro Xing first, 12 people said they bought Santro Xing, because of advance quality.

41

7 people choose Santro because of value for money. So, it can be concluded that Santro is

providing value for money to the customer and it is having advance technology.

02468

101214

Satro Zing

advance technologyafter sales servicecompany nameno. of service stationvalue for moneyeasy availability of spare parts

Factors

no .o

f peo

ple

Qu.-4 Source of finance of your existing car is?

42

own resourse 40%

bank loan30%

company loan25%

Financial institutes5%

Source of finance

own resourse

bank loan

company loan

Financial institutes

In this question I asked about their source of finance. In replied 40% person said own resources,

30 % said bank loan, and 25 % said company loan and remaining for i.e., 5% for institutional

loan. So it can be concluded that bank loan among people is most preferred after own recourses.

Qu.-5 From where you gathered information about the car?

43

0

10

20

30

40

50

20

45

25

10

Imformation about the car

News paper and TV ads

Words of mouth

Dealeer

Promotional campaignsources

no. o

f thy

e pe

ople

Every person collects some information before buying a car about its features, company and

other things. So this question was aimed to know about their information gathering. 45 people

said they gathered information from words of mouth. While 25 people aid they collect

information from Dealer itself.

Qu.-6 Are you satisfied with your car?

44

Maruti zen

Santro xing

Fiat palio

Wagon R

indica0

5

10

15

20

25

5

10

35

10

20

25 55

1 255

13

55

1 2

Strongly satisfied

satisfied

can't say

dissatisfied

strongly Dissatisfied

I have done this analysis on every car.

In the case of Maruti Zen, 5, 10, 5,5and 5 people were strongly satisfied, satisfied, can’t say,

dissatisfied and strongly satisfied respectively. In the case of Hyundai Santro Xing, 10 and 20

people were strongly satisfied and satisfied respectively. In the case of fiat Palio, 2 1, 1 and 1

people were strongly satisfied satisfied, can’t say, dissatisfied and strongly satisfied respectively.

In the case of Maruti Wagon R, 3,5,2,3 and 2 people was strongly satisfied, satisfied, can’t say,

dissatisfied and strongly satisfied respectively. In the case of Tata indica, 5, 5, 5 and 5 people

were strongly satisfied, satisfied, can’t say, dissatisfied and strongly satisfied respectively

45

Qu.-7 Rank your car on following attributes?

I have done my analysis on each car.

Hyundai Santro

On the price factor 10, 15 and 5 Santro owner were strongly satisfied, satisfied and cant say

respectively. On the comfort factor 15, 10 and 5 Santro owner were strongly satisfied, satisfied

and cant say respectively. Its means most of Santro driver was happy with Santro. 20 and 10

Santro owners were strongly satisfied and satisfied respectively with the performance of Acs. On

the Fuel efficiency factor 20 and10 Santro owners were satisfied and can’t say respectively. 15

and 5 Santro owner were strongly satisfied and in cant say position respectively on the issue of

maintenance cost. 20 and 10 Santro owners were strongly satisfied and satisfied respectively

with the driving of the car. 15 and 15 Santro owners were strongly satisfied and satisfied

respectively with the performance of Engine. On the availability of spare parts 10, 15 and 5

Santro owner were strongly satisfied, satisfied and can’t say respectively

46

price

comfor

tAcs

Fuel E

fficien

cy

Maintae

nanc

e cos

t

Easy d

riving

engin

e

Availb

ility o

f acc

esso

ries

0

5

10

15

20

25

10

15

20 20

15

10

15

10 10

20

15

10

15 15

5 5

10

15

5Strongly satisfied

satisfied

can't say

dissatisfied

strongly Dissatisfied

no. o

f the

peo

ple

Qu-8. Have you come across any promotional event conducted by Hyundai during last one

month?

(A) YES (B) No

Customer opinion No. of customers

Yes 61

No 49

Total 100

Table No.15

Yes No0%

10%

20%

30%

40%

50%

60%

70%61%

49%

No. of customers

No. of customers

Fig. No. 15

From the table and graph above it can be seen that 61% of respondent’s come across promotion

of Hyundai and 49% do not come across promotion of Hyundai.

47

Qu-9. What more do you expect from your dealer?

(A) Information about new cars (B) Information about service and mileage

(C) Assistance regarding loans and insurance (D) Understanding customer needs

Expectations of customer No. of customers

Information about service and mileage 68

Assistance regarding loans and insurance 8

Understanding customer needs 20

Information about new car 4

Total 100

Table. No.13

68%

8%

20%

4%

No. of customers

Information about service and milageAssistance regarding lones and insuranceUnderstanding customers needsInformation about new car

Fig. No. 13

Most of the customers are expecting the information about service and mileage regarding the cars from the

dealer. From the above analysis we come to know about the customer’s expectations and their post

purchase service demands from the dealer.

48

Qu-10. What’s your opinion on the price list of Hyundai cars?

(A) Affordable by common man (B) Affordable only by rich man (C) Can’t say

Customer opinion on pricelist of

Hyundai car

No. of customers

Affordable by common man 30

Affordable by only rich man 60

Can’t say 10

Total 100

Table. No.11

30%

60%

10%

No. of customers

Affordable by common manAffordable by only rich manCan't say

Fig. No. 11

More than 80% of customers think that Hyundai cars are affordable only by rich men. These

cars are too expensive for an economic/common man of the society.

49

EVALUATION AND CONTROL

The company would evaluate and control the marketing process of all the four type:

1). Profitability: The final profit margin, return on net worth and the cost of advertising would be

compared with proposed budget on timely basis and thus the control measure such as new sales

promotion scheme or additional discount would be offered.

2). Efficiency Control: The proposed budget would specify the expenditure to be incurred. Over

a period of time management and marketing controller and which would Measure the efficiency of a

strategy being taken by company would judge return on Investment on each scheme.

3). Annual Marketing Plan: The annual demand expected for the year has calculated which

would be incurring used to calculated return on net worth. The top management would continuously

compare the final output with the proposed budget. Any lagging would repair

The control procedure to be taken

IF Rate of return on net worth <Rate of return on net worth from proposed budget then:

Change in current strategy being implementation,

Propose change in marketing plan,

Keep a continuous check on future sales.

4). Strategy control: The top management would examine if the company is pursuing Its best

opportunities such as increase or decrease in market share, which product has Maximum sale, which

product’s sale has declined or increased and 6the requirement for change in channel of distribution.

50

COMPETITIVE SET

Since major sale of Hyundai is from its competitive, it’s need satisfied and its various

product mix

Some of the example of Hyundai Product mix:

LEVEL OF

COMPETITION

DEFINATION COMPETING

COMPANY

NEED

SATISFIED

1). PRODUCT

FORM

Small cars like

SANTRO XING

MARUTI,

TATA,

Ease In Commuting With In

City Limit, Fuel Efficiency

Low Priced Light Weight

2). PRODUCT

CATEGARY

Cars (converted

Into Luxury,

Mid sized

Multipurpose

Sport utility

Station wagon

Maruti, Honda,

Tata, ford,

Dailmer, M&M,

GM, Fiat,

Skoda.

Convertibles: good Power to

Weight Ratio, superior

Handling.

Luxary; Status Symbol, High

Level Of Comfort, Luxury

Feature, Satisfies Ego.

Mid –Sized; Reasonably

spacious, High on comfort,

Safety features

Multy Purpose; Status Symbol,

high level of comfort, luxury

Feature, satisfies ego used for

Commercial Purpose.

Sport Utility; High driven

51

Position Good for rough and

Tough usage.

Station Wagon;

High load carrying, Reasonably

spacious, High on comfort,

Safety features

3). BUDGET Expensive product

Like jewelry,

Houses,

And electric

Instrument

All company

Those who are

In this type of

Business

Status, shelter, Comfort

52

CHAPTER 7

FINDINGS

53

FINDINGS

Why do people buy cars?

Family need reign supreme as a reason for a car purchase. Surprisingly 34% of the car owner

bought their car as it suited their personality and lifestyle.

Family is a focal point of a car purchase. Family needs is exactly what the mid car segment

should fulfill.

The decision to buy a car is a collective one made by the whole family. The car is bought not to

fulfill the need of the one particular person need but to cater the entire family’s needs. Therefore

the entry-level car should be a family car, which can satisfy the needs of the whole family.

Secondly, the other most important reason for car purchase was it suited the respondents’

lifestyle and personality

This reason was particularly evident in the car owner segment. These people might have bought

the car for some other reason. But after owning it for a while, feel that the car is a necessary

component of their life style.

In order to attract to these people to a new purchase, companies must hit them at the above point.

It should be projected to fit the life style of these people or rather better their lifestyle.

People already owing a particular are also consulted by a large no. of potential buyers.

Companies should make sure that the early buyers of he entry level are completely satisfied with

the product.

In the case of non-car owner, they tend to obtain information from the people already owning the

car. The reason could be that, they are a little apprehensive about the purchase and want to

quench their anxiety.

54

Where do potential car owner look for information about a car?

The car owners as well as non-car owners are influenced by newspaper and TV ads.

Word of mouth publicity is very powerful tool, it was chosen by 45% car owner and 32 % by

non-car owner. The role of dealers is very important as 10 % of car owners and 26 % of non car

owners are likely to consulate dealers in order to get the information about the various cars

existing in the market.

Source Of finance

Most of respondents use personal resources to obtain funds for the car purchase.40% of car

owner purchased the car by their resources. It was 30 % for non-car owners. The bank loan can’

be ignored, it was 30% and 40% in the case of existing customer and potential customers. Car

owners and non-car owners also prefer company loan as well.

Car purchase plan of car owners

In my study I found that the nearly 20% of the existing car owner want to replace their car with a

mid size / luxury car. The attitude could be due to additional features in the new cars, which

attract these people, or the non-performance of their existing car may compel them to replace the

car.

Customer expectation out of B segment Car:

Features, which a respondents expects in a car, are followed-

Safety

Driving

Loan

Price

Comfort

Value for money

55

CHAPTER 8

LIMITATIONS

56

LIMITATION

The present study is subjected to following limitation.

To develop the relationship through personal interaction by taking such appointment

from Bank Manager and can be bias in their decision.

Due to time constraints able to visit only seventy five branches of different banks, and

conduct seven event shows in different place of the city.

During the event shows I met lot of customers some were interested to buy and some

were already owner.

The sample was restricted to 75 banks and 10 event shows, which may restrict the scope

and completion of study.

Owing to their pre owned car, shortness of time and due to privacy some customers were

not willimg to give their time.

57

CHAPTER 9

CONCLUSIONS &

RECCOMENDATIONS

58

CONCLUSION

During my Research I concluded –

Hyundai Santro and Maruti Zen are more distributed in the region.

In decision-making process, family plays a considerable role.

Word of mouth is quite famous to get information about a car.

Before buying a car people consider its price with the advance technology.

Some people also consider loan for buying a car.

59

RECOMMENDATIONS

In order to provide the entire short in the armory of their employees the company should

Implement these policies at level:

1. The firms will have to set up small experimental shops where an organization can house its best

talent to pursue experiment innovate Develop cutting edge products, dream up new and better ways of

Running a business in order to develop positive value addition to the Organization.

2. The company should arrange for inter corporate programmers so that the best practice of concepts

would be interchanged.

3. The company should arrange for games etc in order to create a forum of informal interaction

between customer and employees. These meeting will help employees develop new skills or get an idea

for a new product etc.

4. The company should provide their employee to go in for management programmers from top

management Schools in gain new ways of doing thing.

5. The organization environment should be made conducive like the introduction of flexi-time, the

accessibility of the work place 24 hours

6. A separate column in the appraisal from should be there for new skill acquired. Then on the basis of

2 or3 new skill acquired he should be appraised and also the compensation be raised. This will go a long

way in motivating employees in developing new competencies.

7.The training programmed should be serviced from outside. Various leaders in various fields

should be invited as faculty or for guest lecture.

60

APPENDIX

61

ANEXTURE

Qu.1- Which car do you own?

Maruti Zen

Hyundai santro Xing

Fiat Palio

Tata Indica

Wagon R

Any other, please specify…………….

62

Age______________________

Gender____________________

Annual income______________

Occupation_________________

No. Of members in family______

Qu.2-How much old your car is?

(1) Less than 1 year

(2) 1-2 yrs

(3) 2-3 yrs

(4) more than 3 yrs

Qu.3-You bought car because;

Reduce the risk of accident

Increase in income

To get comfort

Change in lifestyle and personality

Family need

Distance between home and workplace

Any other, please specify…………………….

63

Qu.4-Who influenced you to buy this car?

Family

Advertising and promotional campaign

Person, who is owning that car

You decided your own

Friends

Any other, please specify…………….

Qu.5-Why did you purchase this car?

Advance Technology

After sales service

Company name

No. of service station

Value for money

Easy availability of spare parts

Any other, please specify…………….

64

Qu.6-Source of finance of your car is?

Own resource

Bank loan

Company loan

Financial institutes

Any other, please specify…………….

Qu.7-From where you gathered information about the car?

Newspaper and TV. Ads

Words of mouth

Dealer

Promotional campaign

Any other, please specify…………….

Qu.8-Are you satisfied with your car?

65

Please specify on the scale of 1-5

(Where 1=strongly satisfied, 2=satisfied, 3=can’t say, 4=dissatisfied and

5=strongly dissatisfied)

Strongly satisfied

Satisfied

Can’t say

Dissatisfied

Strongly dissatisfied

Qu.9-Rank your Car on following attributes on the scale of 1-5

(Where 1=strongly satisfied, 2=satisfied, 3=can’t say, 4=dissatisfied and

5=strongly dissatisfied)

(1) (2) (3) (4) (5)

Price

Comfort

AC’s

Fuel efficiency

Maintenance cost

Easy driving

Engine

Availability of accessories .

66

Qu.10-Do you replace this car?

(1) Yes (2) No

If yes, than which car will you buy and why?

----------------------------------------------------------------------------

----------------------------------------------------------------------------

----------------------------------------------------------------------------

----------------------------------------------------------------------------

Qu.-11- Do you want to give any advice to the company?

----------------------------------------------------------------------------

67

BIBLIOGRAPHY &

REFERENCES

BIBLIOGRAPHY

•Marketing Management by Phillip Kotler •Brand positioning by Subroto sengupta

68

•Positioning: The Battle for your mind by Al Ries & Jack Trout

Newspapers, Journals & Magazines•Business World•The Economist•Economic Times•Auto car India

Websites•www.hyundai.co.in•www.hyundai.com•www.google.com•www.agencyfaqs.com•www.brandchannel.com•www.superbrands.org•www.marketingprofs.com•www.netmba.com•www.economictimes.com•www.blonnet.com•www.ecnomist.com•www.bsmotoring.com•www.autoworld.com

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