EXECUTIVE SYNOPSIS

As organizations become increasingly customer focused and driven by

demand, the need to gain customer loyalty and retain their loyalty is

critical. Customer satisfaction is the most effective way to achieve

customer loyalty. Customer satisfaction and customer loyalty share many

similar traits. Customer value is the customer’s perception of the ratio of

benefits to what he or she gives to obtain those benefits. The customer

Value Triad is a framework used to understand what it is that customers

want. The framework consists of three parts: (1) perceived product

quality, (2) value-based pricing, and (3) perceived service quality.

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

Hyundai Motor Company, South Korea and is the second largest car

manufacturer and the largest passenger car exporter from India. HMIL

presently markets 54 variants of passenger cars across segments. The

Santro in the B segment, the Getz Prime, i10,Eon and the Premium

hatchback i20 in the B+ segment, the Accent and the Verna in the C

segment, the Sonata Embera in the E segment and the Tucson in the SUV

segment.

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 To study about the customer satisfaction on the services provided

by the dealers for sedan car.

 To study the opinion of the customers regarding the availability

and cost of spare parts of sedan car.

The research was based on a study of a sample, sized 100, using

simple random sample selected from the existing database of sedan

cars. The research included collection of data from the primary

sources using the research tool (questionnaire). Final stage was to

analyze, interpret and draw conclusions from the data collected

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 INTRODUCTION

CUSTOMER SATISFACTION

As organizations become increasingly customer focused and driven by

demand, the need to gain customer loyalty and retain their loyalty is

critical. Customer satisfaction is the most effective way to achieve

customer loyalty. Customer satisfaction and customer loyalty share many

similar traits. Customer value is the customer’s perception of the ratio of

benefits to what he or she gives to obtain those benefits. The customer

Value Triad is a framework used to understand what it is that customers

want. The framework consists of three parts: (1) perceived product

quality, (2) value-based pricing, and (3) perceived service quality.

Customers are satisfied, when value meets or exceeds expectations. If

their expectations of value are not met, there is no chance of satisfying

them. Figuring out what the customers want, however, is a difficult and

complex process. To be able to create and deliver customer value is

important to understand its components. On the most basic level, value

from a customer’s perspective is the ratio of benefits to the risks being

taken while buying the product.

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CUSTOMER SATISFACTION

AN INSIGHT

According to Harold E Edmondson “ Customer Satisfaction” seems to

appear in print more frequently than any other catch phrase used to

describe a new found magic for industrial success. Before we proceed in

to the study of the dynamics of Customer Satisfaction it is important to

know about, who a customer is and what satisfaction really means.

Who really is a Customer?

The question of defining who your customers are seems fairly easy

particularly if you have segmented your market properly and understand

who you are trying to satisfy. However subtlety that frequently goes

undetected by many firms is that is that customer set can be divided into

two parts, the apparent customer and the user. The apparent customer is

the person or group of people who decide what product to buy and

basically have control over the purse strings. The user is a person or

group who physically uses the product or is the direct recipient of a

service.

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What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears

simple. However as with customer there is a subtlety that needs

addressing. Satisfaction by most definitions simply means meeting the

customer’s requirement.

Customer satisfaction is a concept that more and more companies are

putting at the heart of their strategy, but for this to be successful they’re

needs to be clarity about, what customer satisfaction means and what

needs to happen to drive improvement. Without this, there is a risk that

customer satisfaction becomes little more than a good intention, with

confused objectives failing to address the real issues for customers, one

helpful way to look at the problem is to rephrase the objectives: set the

sights on helping the customers meet their goals.

Customer satisfaction can be defined in many different ways. Finding the

right way for a company depends on understanding your customer and on

having a clear vision of the role that customer satisfaction is to play in the

strategy. For example, a focus on customer satisfaction can work

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alongside existing segmentations to support revenue generation from high

value customers or it can be a company-wide objective rooted in the

brand values. For the former, it may be sufficient to focus on improving

customer service, but for the latter a broader definition of customer

satisfaction is necessary, closer akin to corporate reputation.

Whatever the strategy for customer satisfaction, it must at least include

getting the basics right. Failing to achieve this can destroy the reputation

as well as losing valuable customers. Every customer, regardless of their

economic worth to the business, has the power to influence – positively

or negatively – a company’s reputation. Once the objectives for the

customer satisfaction strategy are defined there are a number of steps we

can take to make sure the focus on customer satisfaction is effective.

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Building a company around Customer Satisfaction -

With the increase in customer’s demands and competition it has become a

lot more important to base the entire company on customer service. When

doing this one must first realize that every member of an organization

plays an active role in customer service. This includes both external

customers and internal customers within a company.

Customer focused organizations focus both on customer satisfaction and

profit. Achieving customer satisfaction generates the profit. In these

organizations top management has frequent contacts with external

customers. The top management uses consultative, participative, and

supportive management styles to get through to the customer. The staff

focuses all of its attention on satisfying the customer’s needs. However,

the management’s job is to provide the staff with support necessary to

achieve these goals. The other department and staff in the organization

that do not have direct contact with the external customers deal

exclusively with internal customer satisfaction.

The Influence of the salesperson in Customer Satisfaction-

In an article titled, “The influence of salesperson selling behavior on

customer satisfaction with products,” Brent G.Goff and James S. Boles

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examine the effects of non-product related construct on customer

satisfaction with major retail purchases such as automobiles. The article

states that salesperson’s selling orientation- customer orientation (SOCO)

will affect not only consumer satisfaction with the salesperson and dealer,

but also indirectly, satisfaction with the product or manufacturer.

In the perspectives of both the retailer and the manufacturer, customer

satisfaction represents an important issue because it relates to several

desirable outcomes. Customer satisfaction leads to future purchases, and

repeated purchases of the same product from the same source. In other

words, it helps a firm retain its present customers and build loyalty. By

helping a buyer obtain product information and providing guidelines

about what should be expected during the buying process and use of a

product, a salesperson may influence customer expectations concerning

the product. Thereby this may reduce the likelihood of dissatisfaction

(Grewal and Sharma, 1991). A successful salesperson tailors to the needs

of each individual customer. By being customer-oriented, a salesperson is

likely to identify with needs of the customer, enabling the salesperson to

match his or her presentation to those requirements of the customer.

Internal Marketing – how it affects Customer Satisfaction –

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Successful companies make every effort to ensure satisfaction to their

customer by focusing all organizational efforts of the company on

providing superior customer service. By doing this these companies hope

to retain their existing customers and attract new ones. Only angle of

customer satisfaction commonly overlooked is the internal aspect.

The internal customer or employee plays a vital role in achieving

customer satisfaction and loyalty. Some firm’s do not understand that the

treatment of internal customers becomes the external customers’

perception of the company. A firm’s employees or other departments

within the organization make up its internal customers. Their job

performance affects the firm’s ability to deliver superior product and

customer service (Boone and Kurtz, 1999). When a firm’s employees are

happy at work, their overall attitude and performance towards the

customer enhances tremendously. Internal marketing helps members or

employees of an organization understand and fulfill their roles in

implementing its marketing strategy. Internal marketing not only keeps

employees happy, it also shows them how their actions affect the firm’s

ability to achieve customer satisfaction.

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Customer Satisfaction as part of Service Profit Chain:

A Harvard Business Review article outlines the internal process required

to drive growth and increase profitability. The article describes the ways

in which service quality contributes to success, outlining the steps in the

“Service-profit chain”:

PROFILE OF HYUNDAI

“Hyundai” a name to be reckoned in the World Automobile industry is

Korea’s number one automaker. Hyundai has established an enviable

record for growth both in quantitative and qualitative terms transforming

itself from a domestically oriented manufacture into a global player and

leading contributor to Korea’s economic and industrial

development. Hyundai Motor Company is steadily accelerating to

achieve the status of world-class automobile company.

In December 1967, Hyundai Motor Company (HMC) was born out of the

Hyundai Business group, the nation’s largest conglomerate with the

purpose of entering the automobile industry to meet the growing domestic

demand for cars. Since then, HMC has played a major role in providing

transportation to further Korea’s economics growth and prosperity.

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Page 11
Entry of Hyundai Motor Company in the Indian Market.

Hyundai established its presence in India by opening a subsidiary called

“Hyundai Motor India Limited” with a total investment of US$ 614

Millions. The Hyundai project is the largest to be made by an MNC in the

automobile sector. The plant near Chennai, in the state of Tamil Nadu is

the largest manufacturing plant of Hyundai motors outside Korea and

contains nearly all facilities necessary for a self sufficient manufacturing

and production site for developing cars. This assembly plant not only

boasts it sown assembly facilities but also a R&D center, a performance

experimenting and testing center, and a driving testing ground. As such,

the India plant represents a family-type combined automobile assembly

facility, capable of all production processes, research and development,

testing of products, marketing for sales and provision of after sale service

in India.

In 1997, Hyundai Motor India limited launched “Santro” the best small

car at its worldwide debut in New Delhi. Santro is basically a face lifted

version of the “Atos”. Santro was introduced in three different models

having varying features. Santro was a runaway success in the India

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market and became famous as the Tall Boy car. It topped the volumes

year after year in its segment.

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Ideology and Environment at Hyundai:

A management motto at Hyundai is “Customer first, best in technology,

best in quality and best value for human beings”. Hyundai as a company

is dedicated to create new value for its customers. Hyundai Motor

Company’s target is to care for the environment and devote attention to

the future of our children and their ability to inhabit a clean, pollution

managed world. Hyundai believes that they have achieved the current

status as a world-class company by faithfully enforcing seven

management principles and creating an atmosphere where by each and

every member of the company is able to work for the benefit of common

future. As a result, Hyundai motor company is committed to its social

responsibilities as it fulfills its mission with dedication and strength of

purpose.

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 COMPANY PROFILE

Goal of Hyundai – “To build the world’s best quality cars”

Hyundai Motor Company

Type Public

Industry Automobile manufacturer

Founded 1967

Founder(s) Chung Ju-yung

Headquarters Seoul, South Korea

Area served Worldwide

Key people Chung Mong-koo, Chairman and CEO

Products Automobiles and commercial vehicles

Revenue ₩31.86 trillion (2009)

Net income ₩2.96 trillion (2009)

Employees 75,000 (as of March 31, 2009)

Parent Hyundai Kia Automotive Group

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 CURRENT MARKET SITUATION

FEBRUARY 2014

Hyundai Motor India today reported a 14.9 per cent decline in total sales

in February at 46,505 units compared with 54,665 in the same month last

year.

The company's domestic sales were little changed at 34,005 units from

34,002 units in February 2013, Hyundai Motor India Ltd (HMIL) said in

a statement. Exports of vehicles dropped 39.5 per cent to 12,500 units

from 20,663 units. Hyundai Motor India (HMIL) expects the current year

to remain challenging for the Indian auto sector as buyer sentiment

remains subdued.

"2013 was a challenging year for the Indian auto sector and we believe

2014 will also be the same. The footfalls at outlets is not converting into

sales," HMIL Senior Vice President, Marketing and Sales, Rakesh

Srivastava told PTI.

Annual car sales in India declined for the first time in 11 years in 2013,

posting a 9.59 per cent dip.

Target Markets

Hyundai marketing strategy is differentiated marketing. The primary

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consumer target is middle to upper income professionals, who need value

for their money and comfortable ride in city conditions .The secondary

consumer target is college students who need style and speed. The

primary business target is midsized to large sized corporate that want to

help their managers and employees by providing them a car with ease of

transport.

The secondary business target is entrepreneurs and small business owners

who want to provide discounts to managers buying a new car.

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 MARKETING STRATEGY OF HYUNDAI IN INDIA

Marketing Communications

By integrating all messages in all media the Hyundai will reinforce the

brand name & main points of product differentiation. Research about

media consumption , pattern will help the advertising agency to choose

appropriate media and timing to reach prospects before & during the

product introduction .Thereafter , advertising will appeared on a pulsing

basis to maintain brand awareness and communicate various

differentiation messages . The agency wills also co-ordinate public

relation efforts to build Hyundai brand & support the differentiation

message. To attract market attention & encourage purchasing, the

Hyundai offer a limited time, registration & insurance. To attract, retain &

motivate channel partners for a push strategy, the Hyundai use trade sales

promotions and personal selling to channel partner.

Road shows

The company plans to stage road shows, to display vehicles in the

pavilions during various college festivals and exhibition. This will appeal

to youngsters more and attracts them towards the cars of Hyundai.

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Television advertisements

Advertisements to promote and market the products will be shown on

leading television channels. Major music and sports channels will

promote and they will reach out to the youth will be promoted through

Star , Zee , Sony and Doordarshan etc as it has more viewers .

Radio

Radio is the medium with the widest coverage. Studies have recently

shown high levels of exposure to radio broadcasting both within urban

and rural areas, whether or not listeners actually own a set... So radio

announcements will be made and advertisements will be announced on

the radio about the products features and price, qualities, etc.

Print Ads

Daily advertisements in leading newspapers and magazines will be used

to promote the products. Leaflets at the initial stage will be distributed at

railway stations, malls, college areas and various other locations.

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Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to

make people aware about the companies past performance and products

features, their affordability and usage, vast distribution network. Road

shows will be conducted where free trials of the cars would be given.

Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside

theatres and shops to promote the brand cars.

Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the

customer to read. These booklets will provide information about the

company; the products offered which suits the customers need

accordingly.

Rural Marketing

Hyundai Motors India has introduced a new marketing initiative – 'Ghar

Ghar Ki Pehchaan' to tap the India rural car market. The company has

rolled out special schemes for government employees in rural areas and

members of gram panchayats on the purchase of Santro .

Hyundai Motor is keen to expand its market to rural areas with setting up

300 new rural sale outlets, all this expansion is in progress for the launch

of the cheapest car from the Hyundai stable until November this year.

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Currently Hyundai is maintaining its standard 325 dealership outlets

within cities and this new expansion strategy could make the rural outlet

number network extend to 1,000.

Hyundai Motor’s, India’s second largest car manufacturer has announced

to generate employment for about 2,000 sales executives at these rural

outlets. According to Hyundai Motors, the car markets which are present

in areas outside the superior 40 cities are marked under rural areas.

Arvind Saxena , director of marketing & sales at Hyundai Motor India

given in an interview to Financial Chronicle said that the company has

already placed 700 new outlets at rural areas with 300 more coming in

way within the next few months . These outlets are just the basic models

made with small investments and these are not the typical permanent

outlets made with brick and stone. Their basic plan is to give a feel to

rural folks with car demonstrations, test drives in addition with basic little

repair requirements.

The size dimensions for these rural showrooms would be 900 sq ft...

Around 150 of these rural outlet showrooms would house a 2,000 sq ft

service workshop of their own.

A four member team is made with 2 sales and two executives for service

by the Korean Autocar giant for the rural model and they will visit the

rural outlets at regular intervals. The ever increasing importance of rural

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areas is signified from figures which show that they contribute about 31

per cent in sales for the company. According to Saxena the company

plans to generate 33 per cent share, by the end of 2013 from these rural

models as they help amazingly in increasing the sales. It is estimated that

356,717 cars were sold by Hyundai n 2012.

Strategies

Product

Hyundai pa is fully loaded and will be sold with 3 year warranty. We

willalso introduce a diesel/CNG/LPG version of Hyundai Pa in the near

future.Also the high end model will have an option of GPS system.

Price

Hyundai Pa’s base model will be introduced at ex-showroom price of

3lakhs. This price reflects a strategy of 1) attracting desirable channel

partners2) Taking market share from Maruti.

Distribution

 The Stockiest will represent 3 to 4 districts in a State.

 The Dealer will represent a district or main City.

 The Sub-Dealer shall represent a particular area or taluka.

 The booking agents will be individuals working on freelance basis.

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 Hyundai Motors Profile

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

Hyundai Motor Company, South Korea and is the second largest car

manufacturer and the largest passenger car exporter from India. HMIL

presently markets 54 variants of passenger cars across segments. The

Santro in the B segment, the Getz Prime, i10,Eon and the Premium

hatchback i20 in the B+ segment, the Accent and the Verna in the C

segment, the Sonata Embera in the E segment and the Tucson in the SUV

segment.

Hyundai Motor India Ltd, continuing with its tradition of being the fastest

growing passenger car manufacturer, registered total sales of 616,039

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

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

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

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

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HMIL's manufacturing plant is located near Chennai which has advanced

production quality and testing capabilities in the country. Inorder to

provide the Indian customer with global technology, HMIL started its

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

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

units per annum. Apart from expansion of production capacity, HMIL

currently has 329 strong dealer network across India.

The production management processes at Hyundai Motor India are overlaid

with an organization-wide implementation of manufacturing best practices

like Just-in-time inventory management, Kaizen, TPM and TQM, that help us

in making the world's best cars, right here in India.

Hyundai Motor Company was established in 1967, Hyundai Motor Co.

has grown into the Hyundai-Kia Automotive Group which was ranked as

the world’s fifth-largest automaker in 2007 and includes over two dozen

auto-related subsidiaries and affiliates. Employing over 75,000 people

worldwide, Hyundai vehicles are sold in 193 countries through some

6,000 dealerships and showrooms.

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Hyundai Motor Company, S.Korea, the parent of HMI, has been doing

considerable work on sustainable Environment Management . The

company has a well defined framework in place for developing products

that reduce pollutant emissions and processes for preservation of natural

resources and energy along all the stages of the product lifecycle from

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

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

S.Korea.

Cars of Hyundai

Hyundai deals in wide variety of cars which includes

Atos/Atoz/Santro

Coupé/Tiburon/Tuscani

Dynasty

Elantra/Avante/Lantra

Eon

Equus/Centennial

Excel

Scoupe

ix20

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 Genesis

Genesis Coupe

Getz/Click/Getz Prime/TB

Grandeur/Azera/XG

i10

i20

i30/i30cw/Elantra Touring

Hyundai i40

Lavita/Matrix

Pony

Santamo

Sonata/i45

Stellar

Veloste

HISTORY OF INDIAN AUTOMOBILE INDUSTRY

PRE- LIBERALIZATION PERIOD

Since Independence The Car Industry was closely monitored and

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

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

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

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

arrival of Tata Motors, HyundaiAuto, and Mahindra & Mahindra led to

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

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

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

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

restrictions. However, the automotive industry witnessed tremendous

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

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

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

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

and technically less sound with compare to international standard. Then

government initiated dialogues with Suzuki Motors, a Japanese car

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

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

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

of 26%.

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

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

Rs.40,000/-.

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

they also rushed to improve and increase their product line.

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

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

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

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

major

foreign exchange earner for the country.

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Government

1981 was the year when government taken a revolutionary initiative to

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

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

almost every year. Government has also imposed heavy imposed heavy

import duties on imported vehicles to safeguard the car manufactured

locally.

POST- LIBERALIZATION PERIOD

Following the economic reforms of 1991, the automobile section

underwent delicensing and opened up for 100 percent Foreign Direct

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

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

an average since the economic reforms of 1991.

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

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

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

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

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

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

recent years.

The positive demographic factors, stable macro-economic environment

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

availability of skilled labor has attracted almost all major global auto

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

Toyota The intense competition has compelled the manufacturers to

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

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

turn, have benefited from wide choice of models, technologically

advanced cars and better service from the car manufacturers.

Major Manufacturers in Automobile Industry and their Cars

Maruti Udyog Ltd.

Cars:-

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

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

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Tata Motors.

Cars:-

Aria,IndicaV2,IndicavistaIndigo,IndigoCS,IndigoManza,IndigoMarina,

Indigo V series,Indigo XL,Nano,Safari,sumo,Sumo Grand MK II,

Sumo Victa,

Hyundai Motor India Ltd.

Cars:-

Atos/Atoz/SantroCoupé/Tiburon/Tuscani,Dynasty,

Elantra/Avante/Lantra, Eon,Equus/Centennial,Excel,Scoupe,ix20,

Genesis,GenesisCoupe,Getz/Click/Getz,i10,i20,i30/i30cw/Elantra

Lavita/Matrix,Pony,Santamo,Sonata/i45, Stellar,Veloste

Honda

Cars:- Honda Brio,Jazz, City, Civic, Accord,CR-V

BMW

Cars:- 1 series,3 Series, 5 Series, 6 Series, 7 Series,X1, X3,X5,X6 and

Z4.

Other Automobile Companies are:-

Skoda

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Toyota

Hindustan Motors

Ford

Toyota

Mahindra and Mahindra

General Motors

Mercedes

EVOLUTION OF AUTOMOBILE INDUSTRY

EVOLUTION OF AUTOMOBILE INDUSTRY

Initial Years Early to mid 90s Mid 90s- 2011

Manufacturing was Seller’s market and LongBuyers Market

Licensed waiting periods

High customs duty on Delicensing in 1993 Increase in Indigenization

import

Steep excise duties & Removal of CapacityEasy Auto Finance

sales tax restrictions.

2 Major Players Decrease in customs &Manufacturers

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 excise. diversifying into related

activities:

Premier Automobiles Auto finance boom-moreFinance lease, fleet

Ltd & Hindustan players (foreign banks &management, insurance

Motors non banking companies,and

better schemes).

1980s Used car market.

Entry of MUL, better Variety of Options

product, with Govt available to choose from.

support.

Seller’s Market.

Long waiting periods.

fig:- 1

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COMMON MARKETING STRATEGIES OF AUTOMOBILE

COMPANIES

Advertising in News papers and Magazines:-

In this companies advertise about the car in

various local newspapers like Economic

times and they give detail explanation about

the feature of the cars, keeping customer’s

requirement. They also provide various

dealers addresses and contact numbers for

reference. Company also tries to advertise

through various magazines like Auto Cars, Overdrive, etc.

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Grand Launch :-

Recently Tata Nano car was grandly launched and created a buzz in

market. After the launch media aggressively took interest in providing the

minute details about the car to the customer by showing test drives, etc.

Once the car is launched they give adds in every possible newspaper, car

magazines, put hoardings, display car models in the malls.

Company provides exchange offers to customers :-

This is one of the most effective ways adopted by the companies and very

successful marketing strategy, which has helped company increase their

sales.

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In this method, companies provide option to buy a new car of your choice

in exchange of their old cars, but the price of old car is decided by the

dealer by looking at its condition. It helps customers, as they don’t need

to go anywhere else to sell their old car. This also helps companies to

increase their sale of new cars.

Adding Star Value to product- Brand Ambassador :-

Companies choose brand ambassadors for their cars to reach wide

masses. For e.g. Shahrukh Khan promotes Hyundai, Abhishek Bachan

promoted Ford Fiesta, Saif Ali Khan and Rani Mukherjee promoted

Chevrolet Aveo and Amir Khan promoted Toyota Innova. Ambassadors

give a special identity to the products.

Companies have started sponsoring reality shows for better

visibility :-

As we all know reality shows are making all time big in television and

entertainment industry. This is really a smart move by automobile

companies to gain visibility through reality shows. The reality shows are

aired all over the world and huge number of people watch it. So

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companies sponsor such shows and get noticed.E.g. Maruti sponsored

India’s Got Talent show on Colors channel and gifted Ritz to the winner.

Indian Idol winner was also gifted with Maruti SX4.

Mall Displays

Various companies display their cars in Malls so as to get prime attention.

People go in Malls for shopping and hangouts with their friends and

family. They conduct small contests and give gift hampers as prize. Thus

they try to attract crowd towards them.

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Companies enter market with help of Films

In terms of marketing strategies Chevrolet Aveo found a unique way of

advertising by way of a Yash Raj Film production, Tara Rum Pum. The

main motive behind this was to popularize and promote the product in

youth.

Companies Sponsor Go- Karting events

Go-karting events are really booming up among young crowd. And that’s

the reason we see craze for participating in go-karting events is on high.

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People have started taking interest in the sport and huge crowds turn up

for such events. But for sure car companies would to not like to miss

chance of visibility they get in such competitions.Few years before

Maruti Suzuki sponsored Autocross rally. Similarly Tata Engenieering has

sponsored Narayan Kartikeyan as India’s Entry in to the World Series

motorcar racing.

Personal selling

Personal Selling largely takes place at the Dealers’ End. The way

customer is attended depends mainly on the Dealer as he acts as an

interface between the company and the Consumer. The various cases in

which Personal Selling takes place is Individual Sales, Corporate Sales,

Sales Presentations, Fair and trade Shows. Mostly in case of Individual

Sales the Customer goes to the showroom and takes a look at the product.

There he is attended to by the Sales Personnel of the Dealership.

Sometimes the Senior Sales Executive has to make Sales Presentation to

Corporate Buyers. Personal Selling is also practiced at Trade Fairs and

Auto Shows wherein the Company appointed Sales Personnel attend

prospective customers and also book their orders.

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 OBJECTIVE OF PROJECT

To study and understand the key service parameters using Customer

Satisfaction and reflect upon the low performing areas:

 To study about the customer satisfaction on the services provided

by the dealers for sedan car.

 To study the opinion of the customers regarding the availability

and cost of spare parts of sedan car.

 To study the opinion of the owners of cars regarding its features

like mileage, price etc.

 To study the effect of advertisement on the customers to promote

the sedan car product.

 To study the customer satisfaction with usage of their sedan cars.

 To study the information resources that the customer using before

purchasing the sedan car.

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 LITERATURE REVIEW

STRATEGY TO INCREASE THE DEMAND FOR

HYUNDAI MOTORS PRODUCT AND SERVICES

 The management has to understand personal needs of the sales and

marketing people, hence weekly get to gather with top

management should be there about technical and personal

problems for the employees where everyone would be free to

express his/her thoughts.

 When they should be having first meeting with customer, initially

they have to

makethem understood about financial conditions for available bank

ing and non bankingcompanies. Then after they have to give them

plan for financial.

 They should be having one printed information about all

formalities for the finance and it should be given to the customer so

that it would be helpful to the customer while summing up

documents for finance

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 . The customers who are having discontinued banking operations

they should be given support by making alliance with related

banks, so that it would be easy for the customers to get loan.

 .Executives may have to check that all documents they are sending

to the department.

 .All relevant information should be same for all sections and

absolute.

 First of all, they have to provide one more employee to the

exchange department. Hence, when Mr. R.K. Singh (corporate and

exchange dept) would not be free then he can manage the deal.

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 PRODUCT LIFE CYCLE

Introduction

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As a new product much time will be spent by the organization to create

awareness of it presence amongst its target market. Profits are negative or

low because of this reason.

Growth

If consumer clearly feels that this product will benefit them in some ways

and they accept it, the organization will see a period of rapid sales

growth. Hyundai stands on Growth Stage. As the sales of Maruti Zen

Estillo is high as compare to Hyundai Getz then the consumer will buy

Hyundai by providing them with great benefits in future and they will

accept it.

Maturity

Rapid sales growth cannot last forever. Sales slow down as the product

sales reach peak as it has been accepted by most buyers.

Decline

Sales and profits start to decline, the organization may try to change their

pricing strategy to stimulate growth, and however the product will either

have to be re-modified, or replaced within the market

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Organizational Structure

The global automotive industry is a highly diversified sector that

comprises of manufacturers, suppliers, dealers, retailers, original

equipment manufacturers or OEMs, aftermarket parts manufacturers,

automotive engineers, motor mechanics, auto electricians, spray painters

or body repairers, fuel producers, environmental and transport safety

groups, and trade unions. The automobile and automotive parts &

components manufacturers constitute a major chunk of automotive

industry throughout the world. The automotive manufacturing sector

consists of automobile and light truck manufacturers, motor vehicle body

manufacturers, and motor vehicle parts and supplies manufacturers.

United States, Japan, China, Germany and South Korea are the top five

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automobile manufacturing nations throughout the world. The United

States of America is the world's largest producer and consumer of motor

vehicles and automobiles accounting for 6.6 million direct and spin-off

jobs and represents nearly 10% of the $10 trillion US economy.

Automobile is one of the important industries in the world, which

provides employment to 25 million people in the world.

Overview

The main purpose of this research report is to compare the global

strategies which Hyundai Motors and Ford utilize in managing their

international automobile business. The firm I use as my "base” firm is

Hyundai Motors, while Ford is the "competitor".

I would like to illustrate where Hyundai Motors stands compared to the

competitor in terms of managing its 1) Global integration/ efficiency 2)

national responsiveness 3) worldwide learning to grow their international

business as a transnational firm.

At the end, I could possibly find out the competitive advantage of

Hyundai Motors by this and

develop a recommendation for Hyundai Motors to do a better job than its

competitor in the automobile industry.

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Page 50
SCOPE OF THE PROJECT

 The research measures the experiences of customers.

 Defines and analyses the experiences based on key deliverables.

 Gains insights into Customer expectations.

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 RESEARCH METHODOLOGY

Preliminary stage of study- a pilot survey, personal interview of sales

consultants, potential customers and existing customer numbering 20 was

conducted to arrive at key deliverables which would ensure customer

satisfaction. The research tool (questionnaire) was designed by inducing

the various queries, based on the key deliverables, which would reflect

the customer satisfaction.

The research was based on a study of a sample, sized 100, using simple

random sample selected from the existing database of sedan cars. The

research included collection of data from the primary sources using the

research tool (questionnaire). Final stage was to analyze, interpret and

draw conclusions from the data collected

Date Sources:

Primary Data:

The data is collected directly from each and every customer.

Survey Research:

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 The research was done to learn about people’s preferences and

satisfaction of the sedan cars customer.

Research Tool:

Questionnaire (primary tool- attachment 1)

Interview through questionnaire method was employed for the research

purpose. The questionnaires were individually administered to each

customer to ensure minimum scope for faulty data entry and error of

understanding. This method also gave the interviewer the scope of

entering into a dialogue and understanding the customer’s perception

better.

The questionnaire tried to capture the responses of the customers mainly

on the key deliverables, derived from the pilot survey conducted, and a

few questions have been included to gauge the level of satisfaction and to

gain insight into customer expectations.

Unstructured interview

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The interview complemented the primary research tool and helped delver

into details of responses provided by the customers. This not only

validated the responses of the customers but also helped the interviewer

understand the expectations of the customers.

Sampling Unit: In this study the sampling unit used is the existing

customer base of sedan cars.

Sampling Size: Sample size was chosen to be 100.

Sampling Procedure: Simple Random Sampling.

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 FINDINGS AND ANALYSIS

1. Age Group

Sl.No Age Group No of people

A 20 to 30 9
B 30 to 40 25
C 40 to 50 25
D Above 50 22

INTERPRETAION:

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From the above table shows that the respondents of the age group of years

above 50 i.e. 22, the next group is 40-50 years i.e.25, the remaining age groups

are 30-40 and 20-30 years having 25 and 9 respectively.

2) Occupation

Sl.No occupation No of people

A Pvt 35

Employee
B Business 20
C Govt 15

employee
D Others 30

INTERPRETAION:

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From the above table shows that the respondents of the occupation are mostly

private employees numbered 35, business people numbering 20 , Government

employees 15 and others 30 people.

3) Which top model of sedan car do like more?

Sl.No Brand No of people

A Swift Desire 45
B Tata Indigo 28
C Verna 27

Interpretation :-

The following graph shows the number of cars in the total of 100 persons

Swift Desire by 35 people, and Tata Indigo by 88 and Verna by 27

people.

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Which feature is the best one in sedan car ?

Sl.No feature NO of people

A Mileage 20
B Price and style 28
C Quality 40
D All 12

Interpretation:-

The following graph shows the number of what features you consider

while you purchase in the total persons Mileage by 20, and Price And

style by 28 and by quality 40,and all by 12.

4) how do you feel when you drive sedan car?

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 Sl.No RANK No of people
A Good 35
B Better 20
C Best 35
D Poor 10

INTERPRETAION:

From the above table shows that the respondents of the experience of

people while driving sedan cars is good i.e. 25, the next group is better

i.e.20, the remaining people who feel best is 40 and others who feel poor

experience are 5 respectively.

5) Are you satisfied with your vehicle’s mileage?

Sl.No Vehicle’s mileage No of percentage

A Good 60
B Better 20

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C Best 13
D Poor 7

Interpretation :-

The following graph shows the number of people who satisfied with

mileage of the vehicle in the total respondents response given by

persons Yes by 61 and No by 14.

6) Will you recommend sedan car p to anybody?

Sl.No Recommendation No of percentage

A Yes 70
B No 30

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Interpretation :-

The following graph shows the number of people who recommend sedan

cars in the total persons yes by 45 and No by 30.

7) What do you think about sedan Car customer service?

Sl.No RANK No of people

A Excellent 40
B Good 20
C Better 30
D Poor 10

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INTERPRETAION:

From the above table shows that the respondents of the people about sedan car

customer service is excellent i.e. 40, the next group is good i.e.20, the remaining

people who feel better is 30 and others who feel poor experience are 5

respectively.

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 8) How do you feel about company’s response towards customers?

Sl.No Source No of percentage

A Excellent 25
B Good 45
C Better 20
D Poor 10

Interpretation :-

The following graph shows the number of response of customers

towards the products from the total number of 100 people good are

good 17, Excellent 38, better 10 and poor are 7.

10.Did you receive the product on delivery time?

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 Sl.No Delivery time No of

percentage
A Yes 75
B No 25

Interpretation :-

the following graph shows the number of customers who receive the

product on delivery time is yes by 55 customers and no by 20 customers.

11) Are you satisfied with company’s after sales service ?

Sl.No After sales service No of

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 percentage
A Satisfied 90
B Not satisfied 10

Interpretation:

The number of customers who satisfy/not satisfied with the after

sales service of the company from a number of 100 customers are

satisfied 75 and not satisfied 5.

CONCLUSIONS

 Hyundai, Tata & Maruti enjoys a high patronage from its

customers.

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 The satisfaction levels can also measured with the level of

recommendations to friends and associates; It is evident that more

than 80% customers are satisfied.

 In the interview it was found that the customers are happy about

the training

programs under taken by the showroom, which train the customers

to negotiate minor breakdowns comfortably.

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 RECOMMENDATION

The overall sales satisfaction index from the study reveals that the

company is performing very well and customers buying are much

satisfied with the service given to them.

The only couple problem noticed are:

 Some of the customers have complained about the slack in the delivery

process and timings. Therefore, this is the area which I recommend to the

showroom to focus a little bit more. It needs to improve its delivery

process and time. Need to become little quick and fast.

Some of the customers have also complained about the after purchase

services provided by the showroom. Even though the complaints are

minor, the showroom needs to resolve the customer after purchase service

issues in order to achieve customer satisfaction.

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 LIMITATIONS

The study is restricted in scope of owing to the following limitations:

 Due to constraint of time only city of Lucknow is selected and so it

cannot claim to be a comprehensive study of the population.

The sample size is restricted to 100 respondents

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BIBLIOGRAPHY

Books:

Principles of marketing: KOTLER ARMSTRONG.

Marketing Management: PHILIP KOTLER.

(Analysis, Planning Implementation and Control)

Services Marketing : TATA Mc GRAW HILL.

Marketing Research : G.C.BERI.

Research Methodology: KOTHARI. C.R.

Websites:

http://www.jdpower.co.jp

www.bus.umich.edu

http://www.asq.org

Page 69
 ANNEXURE

1. Age group

a) 20-30 b) 30-40 c) 40-50 d) Above 50

2. Occupation?

a) Employee b) business c) NRI d) others

3. Which top model of sedan car do like more?

4.which feature is the best one in sedan car?

a) price b) style c) mileage d) quality e)

mileage&quality

e) mileage & style

5. How do you feel when you drive sedan car?

a) Good B) better c) best d) Poor

6. Are you satisfied with your vehicle mileage?

a) Yes b) No

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7. will you recommend sedan car to anybody?

a) Yes b) No

8. what do you think about sedan car’s customer service?

a) Excellent b) Good c) Better d) Poor

9. How do you feel about company’s response towards customers?

a) Excellent b) Good c) Better d) Poor

10. did you receive the product on delivery time?

a) Yes b) No

11. are you satisfied company’s after sales service?

a) Satisfied b) not satisfied

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