SHANTESHA MOTORS PVT. LTD. EXECUTIVE SUMMARY A project report containing marketing research on “The Impact of Brand Preference among B-Segment cars on Buying behavior of customers at Belgaum city” is partial fulfillment of requirement of MBA-II semester in Belgaum Institute of Management Studies, Belgaum. So the need to know which is the Brand preferred and the Buying behaviour of customer, I collected the information by a structured questionnaire that included all the requirements what the SMPL needed and the questionnaire is attached in the appendix. This study helps the organization in the following ways: Management will know the most preferred brand among B- segment cars Management will understand the buying behaviour of customers To understand customers preference towards dealers. BABASAB PATIL Page 1
134
Embed
Buying Behavior of Customers Maruthi Suzuki Mba Marketing Project Report
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
SHANTESHA MOTORS PVT. LTD.
EXECUTIVE SUMMARY
A project report containing marketing research on “The Impact of Brand Preference
among B-Segment cars on Buying behavior of customers at Belgaum city” is partial
fulfillment of requirement of MBA-II semester in Belgaum Institute of Management
Studies, Belgaum.
So the need to know which is the Brand preferred and the Buying behaviour of customer,
I collected the information by a structured questionnaire that included all the
requirements what the SMPL needed and the questionnaire is attached in the appendix.
This study helps the organization in the following ways:
Management will know the most preferred brand among B-segment cars
Management will understand the buying behaviour of customers
To understand customers preference towards dealers.
So these are some fact by conducting this survey.
BABASAB PATIL Page 1
SHANTESHA MOTORS PVT. LTD.
INTRODUCTION
It gives me an immense pleasure to present you this entire project. The project emphases
on “THE IMPACT OF BRAND PREFERENCE AMONG B-SEGMENT CARS ON
BUYING BEHAVIOUR OF CUSTOMERS AT BELGAUM CITY ” the study is
undertaken at Shantesha Motors Pvt Ltd. Belgaum.
The project report focuses on the Brand preferred by the customers, their Buying
Behaviour, customers preference towards dealers and what all service the customer
wanted.
LITERATURE REVIEW
Brand preference:
Today, the primary capital of much business is their brands. For decades, the value of the
company was measured in terms of its real estate, then tangible assets, plants and
equipments. However, it has recently been recognized that a company’s real value lies
outside the business itself, in the minds of potential buyers.
For the potential customer, a brand is a landmark. Like money, it facilitates trade.
Faced with a multitude of silent or “hard –to-read” products, whose performance cannot
be assessed at first glance, customer are confused. Brand and prices make products easier
to “read”, removing uncertainty. A product price measures it’s monetary value, it’s brand
identifies the products and reveals the facts of it’s differences functional value ,pleasure
value and symbolic value as a reflection as a buyer’s self image. One word, One Symbol
BABASAB PATIL Page 2
SHANTESHA MOTORS PVT. LTD.
Summarizes an idea, a sentence and a long list of attributes ,values and principles infused
into the product or service .A brand encapsulates identity, origin and difference. It
evokes this information concentrate in a word or a sign. This is why brands are vital for
business exchange when faced with, say, hundreds of personal computers, a buyer can
use brands to structure this selection, to segment it, helping him to decide what he wants,
looking towards the products whose brand indicate that they will satisfy his expectations,
needs, or wishes. In markets in which technology and fashion mean that the choice is
constantly evolving, brands provide havens of stability, describing an identity and
promising constant features and direction.
Brands are the real capital of business, yet brand management is still in its infancy. At
present, the tendency is to manage products that happen to have a name. Management is
still living in the age of the products, but brand management involves other, specific
approaches and principles. These are the focus of this presentation.
A brand is not a product: it is the product’s source, its meaning, and its direction, and it
defines its identity in time and space. Businesses are discovering that brand equity must
be managed, nurtured, and controlled. Brand consciousness is raising new questions for
mangers: how many brands be extended? What products and service should it
encompass? Or, on the other hand, what should its limit be, even when a certain turnovers
is expected from it? Going too far can also weaken brand equity.
BABASAB PATIL Page 3
SHANTESHA MOTORS PVT. LTD.
How do you manage brands over time and keep them up to date, as technologies,
products and customers are changing? How do you manage while staying the same? How
do provide consistent synergic management of the range of product sold under a single
brand? How do you optimize image in the relationship between products and their brand?
How far can a brand be extended geographically? Does it have the potential to become a
homogeneous geo-brand in all countries? Or is this impossible, or even undesirable?
Many companies have the same name as their brand (e.g., Renault, Nestle, IBM, BASF).
What difference between managing a brand image and managing corporate and
institutional image? Finally, given that brands do have a value, how can this be measured,
so that it can be tracked and controlled? Should it be capitalized on the balance sheet, to
indicate its true economic value to stockholders, investors, and financial partners?
Brands vary in the amount of power and value they have in the market place. At one
extreme are brands that are not know by most buyers. Then there are brands for which
buyers have a fairly high degree of brand awareness. Beyond this are brands with a high
degree of brand acceptability. There are brands that enjoy a high degree of brand
preference. Finally there are brands that command a high degree of loyalty.
Tony O’ Reilly, former CEO of H. J. Heinz, proposed this test of brand loyalty: “My acid
test… is whether a house wife, intending to buy Heinz tomato ketchup in a store, finding
it to be out of stock, will walk out of the store to buy it elsewhere. ”
BABASAB PATIL Page 4
SHANTESHA MOTORS PVT. LTD.
Aaker distinguished five levels of customer attitude toward his or her brand, from lowest
to highest.
1. Customer will change brands, especially for price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change the brand.
3. Customer is satisfied and would incur costs by changing brand.
4. Customer values the brands and sees it as a friend.
5. Customer is devoted to the brand.
Statement of the problem
In Indian car industry, small car segments have played a very crucial and significant role
due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into
Indian markets, the pace of competition has hiked. This has brought into market, number
of Brands and their variants competing to with each other.
All these factors have resulted in flux in the minds of the customers as to which brand to
go for. In other words, Brand-switching is gaining the momentum. So to position the
brand in the minds of the customers the company or dealer should keep the track of this
shift in preferences. Hence the main purpose of this study is to find the “Impact of
Brand preference among B-Segment cars on Buying behaviour of customers at
Belgaum city”.
BABASAB PATIL Page 5
SHANTESHA MOTORS PVT. LTD.
Purpose of study
The purpose of the study is to know the Brand preferred by the customers and change in
buying behavior can be estimated by this study. The marketing strategies can be designed
in accordance with this change. It will be helpful for the managers to make decisions.
Hence, this study should be conducted.
Scope of the study
The main purpose of the study is to know the “Impact of Brand preference among B-
segment cars on Buying Behavior of Customers at Belgaum city”. This study will provide
solutions to the management by understanding customers feedback.
Through this study Management will know :
The reason why people opt four-wheeler.
To know the features considered by the customers while purchasing a car.
To know the most preferred brand by the customers.
The scope of the study is restricted up to the Belgaum city.
BABASAB PATIL Page 6
SHANTESHA MOTORS PVT. LTD.
Objectives of the study
1. To find the impact of Brand preference among B-segment cars.
2. To understand the Buying behaviour of customers.
3. To know the facilities/services expected by the customers from the dealer.
4. To know the means of finance preferred by the customers.
5. To know the reason why people opt four-wheeler.
6. To know the significant attributes preferred by customers in a car.
BABASAB PATIL Page 7
SHANTESHA MOTORS PVT. LTD.
ORGANIZATION PROFILE
MARUTI UDYOG LIMITED
ORGANIZATION OVERVIEW:
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the
lack of an efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide.
This was not only due to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the top
auto manufacturing country in the world).
A licence and a Joint Venture agreement was signed between Govt. of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
BABASAB PATIL Page 8
SHANTESHA MOTORS PVT. LTD.
The objectives of MUL then were:
1. Modernization of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources.
3. Production of large number of motor vehicles which was necessary for economic
growth.
ORGANIZATION VISION:
"The Leader in The Indian Automobile Industry, creating Customer Delight and
Shareholder's Wealth; A pride of India."
OUR CORE VALUES:
1. Customer Obsession
2. Fast, Flexible and First Mover
3. Innovation and Creativity
4. Networking and Partnership
5. Openness and Learning
BABASAB PATIL Page 9
SHANTESHA MOTORS PVT. LTD.
TECHNOLOGICAL ADVANTAGE:
We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti
Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a
fuel efficient 4-valve engine to create optimum engine delivery. This means every Maruti
Suzuki owner gets the ideal combination of power and performance from his car.
Our other innovation has been the introduction of Electronic Power Steering (EPS) in
select models. This results in better and greater maneuverability. In other words, our cars
have become more pleasurable to drive.
PRDUCTION/ R & D:
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti
Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two
vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to
make a car. More importantly, with an incredible range of 11 models available in 50
variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.
BABASAB PATIL Page 10
SHANTESHA MOTORS PVT. LTD.
Production Milestones
1 st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
10,00,000 vehicles produced by March, 1994
15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 2000
35,00,000 vehicles produced by December 2001
40,00,000 vehicles produced by April, 2003
45,00,000 vehicles produced by April, 2004
MILESTONES:
2006
The car of the Year Maruti SWIFT.
2005
The fiftieth lakh car rolls out in April, 2005
Growth in overall sales by 15.8%
BABASAB PATIL Page 11
SHANTESHA MOTORS PVT. LTD.
2004
New (non AlC) variant of Alto
Alto becomes India's new best selling car
LPG variant of 'Omni Cargo'
Versa 5-seater, a new variant
Baleno LXI, a new variant
Maruti closed the financial year 2003-04 with an annual sale of 472122
units, the highest ever since the company began operations 20 years ago
2003
New Suzuki Grand Vitara XL-7
Redesigned and all-new Zen
New upgraded WagonR
Enters into partnership with State Bank of India
Production of 4 millionth vehicle. Listed on BSE and NSE after a public
issue oversubscribed 10 times
2002
WagonR Pride
Esteem Diesel. All other variants upgraded
Maruti Insurance. Two new subsidiaries started: Maruti Insurance
The above graph shows rank wise percentage of customer’s preference for Look. It shows that Look is not their first preference, 40% of the respondents have given 4th rank for Look whereas only 4% have given 1st rank for the look.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
b) Price:
Rank No. of respondent
Percentage
1 12 42 60 163 8 84 8 85 - -6 - -7 8 88 4 49 - -
Price
112%
260%
38%
48%
50%6
0%
78%
84%
90%
1
2
3
4
5
6
7
8
9
The above graph shows rank wise percentage of customer’s preference for Price. It shows that Price is their second preference,60% of the respondents have given 2nd rank for Price, whereas only 12% have given 1st rank for the Price.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
c) Mileage
Rank No. of respondent
Percentage
1 68 682 8 83 12 124 4 45 8 86 - -7 - -8 - -9 - -
Mileage.
168%
28%
312%
44%
58%
60%7
0%8
0%9
0%
1
2
3
4
5
6
7
8
9
The above graph shows rank wise percentage of customer’s preference for Mileage. It shows that Mileage is their First preference i.e. 68% of the respondents have given 1st rank for Mileage.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
d) Maintenance
Rank No. of respondent
Percentage
1 4 42 - -3 56 564 16 165 4 46 8 87 - -8 8 89 4 4
Maintenance.
14%
20%
356%
416%
54%
68%
70%
88%
94%
1
2
3
4
5
6
7
8
9
The above graph shows rank wise percentage of customer’s preference for Maintenance. It shows that Maintenance is not their First preference, 56% of the respondents have given 3rd rank for Maintenance, whereas only 4% have given 1st rank for the Maintenance.
The above graph shows rank wise percentage of customer’s preference for Safety features. It shows that Safety is not their First preference, 36% of the respondents have given 6th rank for safety, whereas only 8% have given 1st rank for the safety features.
The above graph shows rank wise percentage of customer’s preference for company service. It shows that company service is not their First preference, 44% of the respondents have given 8th rank for company service, whereas no one has given 1st rank for the company service.
The above graph shows rank wise percentage of customer’s preference for Space. It shows that Space is not their First preference, 40% of the respondents have given 5th rank for safety , whereas no one has given 1st rank for the safety features.
The above graph shows rank wise percentage of customer’s preference for Ready availability. It shows that Ready availability is not their First preference, 40% of the respondents have given 5th rank for Ready availability, whereas no one has given 1 st rank for the Ready availability.
The above graph shows rank wise percentage of customer’s preference for Maruti DLX car. It shows that Maruti DLX car is not their First preference, 60% of the respondents have given 10th rank for Maruti DLX, whereas only 4% have given 1st rank for Maruti DLX.
The above graph shows rank wise percentage of customer’s preference for Maruti Zen car. It shows that Maruti Zen car is not their First preference, 48% of the respondents have given 9th rank for Maruti Zen, where as only 4% have given 1st rank for Maruti Zen.
The above graph shows rank wise percentage of customer’s preference for Maruti Alto car. It shows that Maruti Alto car is their First preference i.e. 64% of the respondents has given 1st rank for Maruti Alto.
The above graph shows rank wise percentage of customer’s preference for Maruti
SWIFT car. It shows that Maruti SWIFT car is not their First preference, 64% of the respondents have given 3rd rank for Maruti SWIFT, where as only 4% has given 1 st
The above graph shows rank wise percentage of customer’s preference for Maruti WagonR car. It shows that Maruti WagonR car is not their First preference, 56% of the respondents have given 7th rank for Maruti WagonR, whereas no one has given 1st rank for Maruti WagonR.
The above graph shows rank wise percentage of customer’s preference for Fiat Palio
car. It shows that Fiat Palio is not their first preference, 48% of the respondents have given 6th rank for Fiat Palio, where as only 12% of the respondents have given 1 st rank for Fiat Palio.
The above graph shows rank wise percentage of customer’s preference for Hyundai Santro car. It shows that Hyundai Santro is not their First preference, 44% of the respondents have given 2nd rank for Hyundai Santro whereas only 4% of the respondents have given 1st rank for Hyundai Santro.
The above graph shows rank wise percentage of customer’s preference for Hyundai Getz car. It shows that Hyundai Getz is not their First preference, 40% of the respondents have given 4th rank for Hyundai Getz whereas only 4% of the respondents have given 1st rank for Hyundai Getz.
The above graph shows rank wise percentage of customer’s preference for Tata Indica car. It shows that Tata Indica is not their First preference, 40% of the respondents have given 5th rank for Tata Indica whereas only 4% of the respondents have given 1st rank for Tata Indica.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
6) Do you own a car?
Response No. of Respondent Respondents in %
Yes 68 68%No 32 32%
Do you own a car?
68
32
0
10
20
30
40
50
60
70
80
Yes No
Per
cen
tag
e
Yes
No
The above graph shows that 68% of the respondents are owners of cars and 32%
of respondent have not owned car but are prospect buyers.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
7) Why do you opt for a four wheeler?
Purpose Respondent
Need 4
Comfort / Convenience 52
Status 12
4
52
12
0
10
20
30
40
50
60
Per
cen
tag
e
Need Comfort /Convenience
Status
Purpose for owning a car?
Respondent
It is found from the survey that 52% of the respondent opt four-wheeler for the
From the above graph it is clear that 63.24% of the respondents feel that the car which they own is expensive and 36.76% feel that the price of the car which they own is reasonable.
From the above graph it is clear that 75% of the respondents feel that the car which they own is stylish and 25% feel that the car which they own is simple.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
c)
COMFORT
82.35
17.65
0
10
20
30
40
50
60
70
80
90
Respondents
Per
cen
tag
e
More comfortable
Less comfortable
From the above graph it is clear that 82.35% of the respondents feel that the car which they own is comfortable and 17.65% feel that the car which they own is less comfortable.
From the above graph it is clear that 72.06% of the respondents feel that the maintenance cost of the car which they own is expensive and 27.94% feel that the maintenance cost of the car which they own is reasonable.
From the above graph it is clear that 64.71% of the respondents feel that the fuel efficiency of the car which they own is satisfactory and 35.29% feel that the fuel efficiency of the car which they own is not satisfactory.
1. Please rank the following features when you buy a new car. (Starting from 1 to 9, 1 for the most preferred and 9 for the least preferred)
Look/Aesthetics [ ]
Price [ ]
Mileage [ ]
Maintenance [ ]
Safety Features [ |
Company Service [ ]
Space [ ]
Ready Availability [ ]
Comfort [ ]
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
2. What is your budget for a new car?
< 3 Lakh [ ] 3-4 Lakh [ ] 4-5 Lakh [ ]
3. Which of the following Facilities/Services do you expect from the dealer?
Quick Service [ j 1 year free Insurance [ ]
Discount on Accessories [ ] Home Delivery [ ]
Discount on Spare Parts [ ] Installment Payment Facility [ ]
Discount on Stereo System [ ] Vehicle Registration Process [ ]
4. Which means of Finance would you prefer?
Employee Loan [ ] Bank Loan [ ]
Car Finance Companies [ ] Co-operative Society [ ]
If any other Specify____________________________________________
5. Rank the following in the order of preference. (Starting from 1 to 10, 1 for the most preferred and 10 for the least preferred)
Maruti DLX [ ]
Zen [ ]
Alto [ ]
Swift [ ]
Wagon-R [ ]
FiatUno [ ]
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
Fiat Palio [ ]
Hyundai Santro [ ]
Hyundai Getz [ ]
Tata Indica [ ]
Why do you rank the particular car as NO. 1?
6. Do you own a Car?
Yes [ ] No [ ]
(If No, skip the below Questions)
7. Why do you opt for a four-wheeler?
Need [ ] Comfort/Convenience [ ] Status [ ]
8. Do you find any difficulties in your Car?
Yes [ ] No [ ]
If yes, what are they?
Mileage [ ]
Space [ ]
Maintenance [ ]
Comfort [ ]
BABASAB PATIL
Spare Parts [ ]
Company Services [ ]
Service [ ]
Safety [ ]
SHANTESHA MOTORS PVT. LTD.
9. Name and dealer of your Previous and Presently Owned Car.
Name of the Car: Previous 1____________ 2____________ Present __________
Name of the dealer: Previous 1____________ 2 ____________ Present ___________
10. How did you get to know about this Car?(Tick any one).
T.V advertisement [ ] Magazines/Newspaper [ ]
Friends [ ] Existing Customers [ ]
Car Finance Companies [ ] Any other please specify_____________________
11.Please tick the following attributes of your car.
a. Price: Expensive [ ] Reasonable [ ]
b. Style/Aesthetics: Stylish [ ] Simple [ ]
c. Comfort: More comfortable [ ] Less comfortable [ ]
d. Maintenance: Expensive [ ] Reasonable [ ]
e. Fuel Efficiency: Satisfactory [ ] Not-satisfactory [ ]
12. Given a Second chance which car would you buy from the same budget?
13. Please suggest any areas for improvement in your car dealer.
BABASAB PATIL
SHANTESHA MOTORS PVT. LTD.
Thank you for your Co-operation.
BABASAB PATIL
FINDINGS
According to survey it is found that 68% of respondents Prefer Mileage as the
first most crucial feature considered while purchasing a car,and price is
considered as the second considerable feature i.e 60% and maintenance cost is
considered as the third considerable feature while purchasing a car i.e 56%.
It is found from the survey that 64% of the respondents are willing to pay 3-4
lakh for a new car,20% of the respondents are willing to pay less than 3 lakh
for a new car, and 16% of the respondent are willing to pay 4-5 lakh rupees for
a new car.
It is found that 84% of the respondent prefer Quick service as the most
preferred facilities\services expected from the dealer and the next preferred
facilities/services are one year free service i.e76% and Installment payment
facility i.e72%
It is found that 64% of the respondent prefer Bank loan as the most preferred
means of finance.
Maruti Alto stood first as the most preferred car among the B-segment cars
followed by Hyundai Santro and Maruti DLX stood last.
It is found from the survey that 68% of the respondents are owners of B-
segment cars.
It is found that 52% of customers opted car for comfort /convince rather than
need and status.
It is found that 38.24% of the respondents came to know about the car through
T.V advertisements and 32.35% of the respondents came to know about the
car through friends..
SUGGESTION
It is found that in this segment the important features considered by the customers while buying a car are mileage, price & maintenance. So manufacturer has to consider these aspects to attract and retain customers thus making an effort to build a good brand image.Discount on accessories and spare parts also act as influencing factors for purchase decision. So dealer can give discounts on spare parts and accessories, after sales for a period of a year or two to stimulate the customers.
Customers want service at their doorsteps but are unaware of the home
delivery facility provided by the dealers. So a measure has to be taken to
create awareness in this direction.
Most of the customers buy cars from bank loan rather than financial
companies. So the companies have to come up with attractive loan facilities to
their customers.
Word of mouth is effective media of communication. Hence the dealer should
keep the existing customers happy by providing good service and make
customers talk good about their service provided.
CONCLUSION
Belgaum although a small city, is dwelled by middle and higher-class people in
majority. Thus the market for four-wheeler has never been a dearth here. But of all the
varieties available in this segment, small cars are most preferred.
Customers in this segment want to adopt change into their life style. This has fostered
entry of varieties of small cars available nation-wide to flourish in this market. This
has enhanced the competition in this car segment. But Maruti with stood this
competition by retaining its market share to be the highest.
The results of the survey conducted showed that Maruti Alto Brand is the most
preferred car followed by Santro and it also showed the buying behaviour of
customers that the most of the customer purchase car based on mileage followed by
price and maintenance.
BIBLOGRAPHY
REFERANCE BOOKS:
Marketing research : Tull and Hawkins
Marketing research : A.Parasuraman, Dhruv Grewal and R.Krishnan.