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CHAPTER - I
INTRODUCTION
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INTRODUCTION
In this era of cutthroat competition, no company can even survive in the market
place without knowing its and its products strengths & weakness. It has to fortify itself
against threats from the environment and exploit its strengths or increases profits. And it
order to do so, the company has to conduct regular surveys to know the customer’s
opinions, needs and preferences. This helps the company to manufacture the product like
wise for each customer’s expectations.
It has now become more important for the customer confidence and higher
positioning of buyer perception. Thus, Survey’s becomes genuine key to success.
Our present study is on car segment. The car segment is dominated by many
players viz. Maruti, Chevrolet, skoda, Hyundai, Tata Motors etc. Two major players viz.
Maruti Udyog limited and Hyundai limited dominate the car segment. The market share
of Maruti Udyog Limited is about 60% at resent. Other players constitute about 40% of
total market share. Hyundai is the second largest car manufacturing in India.
Our study will focus why Maruti captured a large market share and why others captured a
little share. We will compare the both dominating companies. Then we will try to
understand the strategies of both companies, which help these companies to capture a
large share of the market. Further we will also study the consumer’s behavior towards
the small segment cars. There will be an effort to study the car owing patter also.
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OBJECTIVE OF THE STUDY
4. To Study the rapid changing perception of consumers towards small segment cars.
customers.
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CHAPTER - III
MARUTI UDYOG LIMITED
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Maruti Udyog Limited
Maruti Udyog Limited is India's largest automobile company. Its main factory is situated
in Gurgaon district, Haryana. The company, a joint venture with of Government of India
with Suzuki of Japan, has been a success story like no other in the annals of the Indian
automobile industry. The first cars rolled out for sale on 14th December 1983, (the
Company went into production in a record 13 months), marking the beginning of a
revolution in the Indian automobile industry.
The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the
decade ending 1983. In 1993, this figure reached a number of 1,96,820. Maruti's figures
are a different story altogether. Maruti reached a total production of one million
motorcars in March 1994, becoming the first Indian company to cross this milestone and
crossed the two million mark in 1997.
For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a Profit
Before Tax of US$ 244 million. During the year, Maruti produced over 350,000 vehicles,
out of which 26,000 were exported. Maruti has made profits in every single year since
inception, and has been paying dividends for ten years.
Through the years Maruti has provided world-class Japanese technology, suitably
adapted to Indian conditions and Indian car users. Maruti's market share figures show the
response of customers: In 1997-98, its market share of vehicles was over 70%. In
addition to leading in the economy car segment, Maruti is also the leader in the luxury car
segment with a market share of 38%. Maruti also sells the Grand Vitara, sports utility
vehicle (SUV) in India.
The success of the joint venture led Suzuki to increase its equity from 26% to 40% in
1987, and further to 50% in 1992. As a result, Maruti changed from being a government
company to a non-government company. With the introduction of economic
liberalization from July 1991, the government realized the high growth potential of the
passenger car market. It took note of the contribution of this segment in promoting
employment, technological up gradation of industry and contribution to government
revenues. Policy changes took place accordingly. Maruti's excellent performance in the
post-liberalization milieu is in keeping with the earlier trend set by it.
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As a result, the transfer of technology from Suzuki has been a smooth process. By
February 1990, a local content of above 90% was reached for the Maruti 800.
Today, the Suzuki brand is synonymous with 'value-packed' products, which offer
quality, reliability and originality. An integral part of the Suzuki concept to deliver
'value-packed' products lies in ensuring that the company uses the most modern
manufacturing equipment and technologies together with factory workers and engineers.
In addition, various activities are aimed at continually enhancing productivity.
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Snapshot of Suzuki Motor Corporation
Subsidiary Companies True Value: for sale and purchase of pre-owned cars
Maruti Insurance: for insurance of Maruti vehicles (four
companies) Maruti Finance: for financing Maruti vehicles
Network Reach Sales 398 Outlets covering 228 cities
Financial year Service 2421 workshops covering 1193 cities
2006-07 Pre-owned Car Sales 242 dealers covering 148 cities
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Maruti Insurance
In line of the vision of providing enhanced services and conveniences of the customers
Maruti started Insurance business like Maruti Finance and Maruti True Value.
Our studies indicated that customers are looking for insurance products that provide them
support, comfort and convenience, more so after their vehicle has met with an accident.
Unfortunately, most of these attributes were missing in the market for car insurance.
Maruti Insurance was launched to fill this gap.
For this initiative, Maruti Udyog Limited have set up insurance distribution subsidiaries,
Maruti Insurance Distributors Services (MIDS) and Maruti Insurance Brokers Limited
(MIBL) in our dealerships.
The subsidiaries of Maruti Udyog Limited have tied up with leading general insurance
companies of the country as their licensed corporate agents. While MIDS has partnered
with Bajaj Allianz General Insurance Company, MIBL will work with National Insurance
Company Limited.
Overall, the initiative in the form of Maruti Insurance promises to be a hassle free and
convenient service for Maruti customers.
Customers can now renew their car insurance instantly, on the Internet while paying
electronically through credit or debit card. Maruti insurance activities provide very much
convenience to the customers. It reduces the efforts of the customers for taking
insurance. These steps are very helpful to increase the sale of Maruti’s products.
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Maruti Finance
Maruti Finance way back in 2002 in line of the vision of providing enhanced services and
conveniences to the customers.
Maruti Finance is one of the auto related service businesses that they entered to provide
complete mobility-related solutions to the customers. These businesses have helped us
strengthen our relationship with the customer.
Interest Rate:
Despite increasing interest rates, the offer rates have been competitive because Maruti
Udyog Limited were able to bring together country's leading auto finance companies
under a single umbrella.
Wider reach:
In addition, we have been able to offer convenient finance options even in upcountry
areas where there is limited availability of organized finance. Besides, it has helped to
reach wider range of customer profiles.
Additional services:
Customers availing of loans from Maruti Finance will have the option of securing
additional finance for purchase of extended warranty on their cars for upto four years. It
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will also provide loan "top ups" to new car customers for car insurance and purchase of
Maruti Genuine Accessories.
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Sales and Service
The Maruti Dealerships are the most visible parts of customer focus. Right from the way
a prospective customer is welcomed to the dealership to the entire buying experience and
the service experience, customers feel very 'invited'. Its what makes customers loyal to
Maruti cars too. Almost 50% of our new car customers are existing customers. Almost
90% people, who trade in their used cars through 'Maruti True Value', finally buy a new
Maruti.
Customer focus
Customer focus is very important, amply evident from the fact that 'Customer
Obsession' is our first core value. We have been chosen by customers as the best car
manufacturer in terms of customer satisfaction seven years in a row in the prestigious J D
Power survey.
Network
Maruti Udyog Limited have a nationwide footprint in over 1172 cities in India and export
to over 100 countries across the globe. Maruti grabbed the Indian automobile market.
Maruti is the leading automobile organization.
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Authorised Service Centers
Maruti also have been provided very approachable service centers all over the country.
Maruti is also on the top regarding this matter. Maruti has large numbers of stud centers.
Service
Service Quality standards have been one of the most important Kaizens followed at the
workshops. Maruti Suzuki has been way ahead of the industry average and has been
ranked No.1 in the JD Power Customer Satisfaction Index seven times in a row.
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CHAPTER - II
MAJOR AUTO-MOBILES
PLAYERS IN INDIA
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Major Automobile Players in India
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and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E
segment and the Tucson in the SUV segment.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an
increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of
19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4
percent, with exports of 113,339 units.
Opel India
Manufactures the Opel Astra car in India
Automotive seating systems and components for passenger cars,LCVs, tractors.
S.K. Engineering & Allied Works has now become a world famous name for Dehusking
and Splitting plant for pulses and peas. Our plants of capacities ranging from 50 to 150
tones per day are already installed and successfully working in countries like Australia,
Middle East, Canada, India, Nepal and Burma with more and more countries getting
added to the list.
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Tata Motors
India's most reliable, dynamic and futuristic automobile manufacturer. With more than
130 models spanning a wide range of Commercial Vehicles, Passenger Cars and Multi-
Utility Vehicles, Tata Motors provides the wheels for India's growth.
Mitsubishi Lancer
All you want to know about the car Mitsubishi Lancer.
Honda City
Luxury cars from Honda
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CHAPTER - VII
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Time Schedule: The collection of data was during the period of Jan. 2011 to
Feb. 2011.
Primary Data: Primary Data are those collected a fresh and for first
time and thus happen to be original in character important primary data
are:
o Observation Method
o Interview Method
o structured Questionnaire
Secondary Data: Secondary Data are those which have already been
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collected and which have already been passed through the statistical
process, secondary data can be collected from :
o Books
o Annual Reports of the Company
o Websites
Sample Design :
Target Population : Customers
Sample Size : 250
Sampling Technique : Population method
Sample Area : Ambala cantt
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CHAPTER - VII
ANALYSIS &
INTREPRETATION
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Analysis and Interpretation
Analysis
It is clear from the above diagram that most of the people have cars.
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Q 2. Specify the one ?
Any Other
10%
Maruti
60%
Hyundai
30%
Analysis
It is clear from the above diagram that the Maruti have grabbed the major market share
among the Car segment automobile market.
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Q 3. Of which model of Maruti Udyog you have own?
Model of the cars No. of Respondents
Maruti Alto 90
Swift Dzire 50
Wagon R 30
Swift 10
Esteem 10
Other 10
No. of Respondents
Esteem Other
Swift 5% 5%
5%
Swift Desire
25%
Analysis
It is clear from the above diagram that the Model Maruti Alto is the most selling model
because it is very economical & convenient for small user.
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Society 28
Status 35
Life Style 45
Culture 18
Any Other 10
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45
40 38
No. of Respondents
35
35
30 28
26
25
20 18
15
10
10
5
0
Your Peer Society Status Life Style Culture Any
Family Group Other
Motivational Factors
Analysis
Most of the people as it is clear from the above diagram motivated by the life style, peer
group and status factors to buy the car.
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Any Other 5
Product Features
60
50
30
20 20
15
5
Style
Any Other
Comfort
Price
Efficiency
Engine
Resale
Power
Value
Fuel
No. of Respondents
Analysis
It is clear from the diagram that mostly customers are looking fuel efficiency, price and
comfort in his selection.
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Q 6. What are the price factors, which motivate you to buy the Cars ?
er
t
n
es
un
bl
so
th
m
ia
co
ea
O
he
el
is
S
ny
R
Sc
D
ff
A
O
No. of Respondents
Analysis
From the above diagram it is clear that the price factor such as reliable, discount and
schemes motivate the people to buy the Cars.
Q 7. How much you are affected by the promotional efforts of the company?
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High 100
Moderate 50
Low 30
No Effect 20
Promotional Efforts
Low No Effect
15% 10%
High
50%
Moderate
25%
Analysis
From the above the diagram it is clear that most of the buyer purchase decision is highly
affected by the promotional effort of the company.
Q 8. According to you who provide the better after sales services and spares?
Companies No. of Respondents (Total 200)
Maruti 130
Hyundai 60
Others 10
30
Respondents of Sales & Services
140 130
120
100
80 60
60
40
20 10
0
Maruti Hynudai Others
No. of Respondents
Analysis
From the above diagram it is clear that Maruti provides the better after sales services and
spare.
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CHAPTER - VIII
FINDINGS OF THE STUDY
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Findings of the Study
It has really been a great job of the research to present the results in the immaculate way
so that the purpose for which whole of the research has been done must be fulfilled. And
also the researcher like a traveler who likes to tabulate all the important landmarks
encountered in the way, would also like to tabulate and go in for in-depth study of the
data collected for the purpose of meeting the research objective.
In the light of the specified objectives of the research study and above discussion
along with the analysis of the data collected following was interpreted from the data
found from the study undertaken:
• In India most of the car users are of small cars. The customers of India prefer
family car than luxury car.
• Cars have shown an increase in craze and sale trends in the recent past owing to
the marketing strategies, mileage factors, price, and ease in handling as may be
clear from the data analyzed.
• From the study, it was found that people are mostly motivated by user life style,
peer group and status factors to buy the two-wheelers.
• It was found that the customers are brand loyal to Maruti only, because of after
sale services and less maintenance ability. So it is the just one time investment for
the customer to be brand loyal. Different approachable service centers also
contributories of the sale.
• Finance is also the key factor to increase the sale. Attractive finance schemes
enhance the sale into the market. Some 0% schemes, low EMI schemes are the
attractions of the customers.
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• Some models i.e. , Alto, Wagon R, Zen Estelo etc. are famous in middle class
users. They like these models as family car. Maruti Swift Dzire, SX4 are the
famous models in the range of luxury cars.
• Maruti also expand its spare business. Service centers are opened in small cities
as well as in the small towns. These are approachable for the residing people in
small towns. This is also the major factor of gaining fame in small users.
• Maruti also has competitive advantage in the price. Some lower range models are
very popular in the middle class users.
• Fuel Efficiency, Style, Comfort, Engine power, Resale value are also the
favorable factors for Maruti Udyog Limited. Maruti Engines are termed best
engines in the automobile market. Resale value of Maruti product are highest in
the market. Maruti car is quite very easy to sale into the market
• Various schemes i.e. Discount, free accessories, free service facilities are also
helpful to increase the sale potential of the Maruti.
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CHAPTER - IX
LIMITATIONS OF THE STUDY
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Limitations of the Study
It is extremely important to evaluate and consider the limitations of the study in advance
in order to assess the reliability of the findings. In our study the following limitations
were encountered:
• The time and money are also big constraints in the course of the research process.
• The sample size being smaller may not lead to the generalized results for a larger
population base.
• The intensity of advertising, their frequency and media has a combined effect on
consumers along with their cultural background. Thus it is quite difficult to
segregate and measure the individual factors’ impact on customers.
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CHAPTER - X
CONCLUSION
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Conclusion
It can clearly be said on the basis of all the study conducted so far that
advertisement play a major role in promoting among the customers. It is immaterial that
customers are from which family status or background. All of them go in for
advertisement when it comes to the purchase decision making of car or a given product.
Advertising that distribute information to consumers that can help them make
better economic decisions than they would in absence of that information provides a
positive economic service. Of course, any advertising that, by deception or by any other
means, induces consumers to make sub optimal decisions provides a corresponding
negative economic service. Some advertising is of more value than others along this
dimension.
It is unreasonable to separate the economic and social factors to increase the sale.
It is clear now that advertising enhances buyer decision-making by providing information
and supporting brand names. It provides and efficient means to firms to communicate
with their customers. By generating various product associations, advertising can add to
the utility of a buyer receives from a product. It supports the various media has the
largely unrealized potential to reduce extremes in the levels of consumer buying.
Customer satisfaction is also the important factor, which affects the financial
position & goodwill of the company. Customer demands are dynamic, but its
consideration is necessary for every company to make existence into the market.
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CHAPTER - XI
SUGGESTIONS
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Suggestions
• Today the prices of petrol are increasing day by day. Company should
manufacture more & more verities of Diesel, Gas engine vehicle.
• Easy Finance scheme should launch more and more. Because easy finance is
most competitive tool to increase the sale.
• Proper service facility is also the key factor, which contributes in the increment of
sale. A company can increase its sale by providing good & proper service
facility. In this case, Maruti is the leading company.
• Company should manufacture the car model as per the requirement of the
customer. Customer satisfaction is the pivot of the economy. So, company
should concentrate on the satisfaction level of the customer.
• Sports people were found to be of the highest credibility by most of the people.
So, they should be used more and more in advertisement of Cars.
• People are mostly attracted by patriotism theme and cultural theme in ads. So, this
should be used exclusively to achieve greater success as is evident by the success
of Maruti Udyog Limited already.
• TV was found to be the most attractive advertising channel by people amongst all
used by various automobiles companies.
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BIBLIOGRAPHY
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Bibliography
New Delhi
• Websites:
• http://www.google.com
• http://www.marutisuzuki.com
• http://www.siam.com
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