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 RESEARCH PROJECT REPORT On “Measuring Customer Satisfaction for Small Cars” Submitted in partial fulfillment of MASTER OF BUSINESS ADMININSTRATION Programme MBA (2009-10)  Uttar Pradesh Technical University, Lucknow  UNDER THE SUPERVISION OF – SUBMITTED BY- DR. MANISH GUPTA  VIBHU SHARMA  1
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  RESEARCH PROJECT REPORT

On

“Measuring Customer Satisfaction for

Small Cars”

Submitted in partial fulfillment of 

MASTER OF BUSINESS ADMININSTRATION

Programme

MBA (2009-10) 

Uttar Pradesh Technical University, Lucknow 

 

UNDER THE SUPERVISION OF –

SUBMITTED BY-

DR. MANISH GUPTA   VIBHU

SHARMA

 

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  INVERTIS A GROUP OF INSTITUTION

  Certificate

This is to certify that Ms. VIBHU SHARMA a student of MBA IV semester has

completed her Research Project Report titled “MESAURING CUSTOMER

SATISFACTION FOR SMALL CARS” assigned by MBA Department under my

supervision.

It is further certified that he has personally prepared this report that is the result of 

his personal survey/ observation. It is of the standard expected of MBA student and

hence recommended for evaluation.

  DR. MANISH GUPTA

 

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ACKNOWLEDGEMENT

 No work can be done in isolation and this work was no exception. It required the time

And efforts without which this would have been very difficult. This research is a result of 

few persons whose guidance and efforts were vital for me.

I am highly grateful to Dr.MANISH GUPTA, reader who has showed me proper 

direction and devoted his valuable time to accomplish my project.

Last but not the least I will thank my parents who were consistent source of inspiration

and gave me courage and resources to fulfill my project.

VIBHU SHARMA

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TABLE OF CONTENT

Chapter-1:

• IMPORTANCE OF CARS IN LIFE OF A PERSON

Chapter-2:

• LITERATURE REVIEW

Chapter-3:

• UP COMING MODELS OF SMALL CARS

CHAPTER -4:

• CURRENT STATUS OF AUTO INDUSTRY IN INDIA

CHAPTER -5:

• RESEARCH METHODOLOGY

CHAPTER -6:

• ANALYSIS & ITS INTERPRETATION

CHAPTER -7:

• FINDINGS

• CONCLUSION

• RECOMMENDATION

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CHAPTER-

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IMPORTANCE OF CARS IN LIFE OF A PERSON – 

C - Commodity that

A - Assures

R - Respect

The utility or importance of car can be divided into:-

1) Social utility – Car fulfills the purpose of social utility of human beings as people

who have cars are regarded or perceived as having a high social status and they

command respect.

2) Value utility – It helps in providing a complete travelling experience, the essence

of modern times is the time is pre and man is busy every man of subsequent has

tied schedule to meet and therefore a private comfort assured way of transport

which only provided by a car becomes of valuable importance in a life of a

 person.

3) Professional utility – it provide fast convenience because they have to move fast

to their destination.

4) Family utility – A means of transport for family in which family moves together,

it also provide pleasure or convenience and social location to the family members.

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CHAPTER- II

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INTRODUCTION OF SMALL CAR INDUSTRY IN INDIA-

The small car segment is one of the largest car segments in India. Small car in India is

Defined as a car that has length between the ranges of 3.8 to 4 meters. It comprises of 

 Nearly two-third of the sales in the country. This car segment has grown by leaps and

Bounds in past few years in the wake of growing economy, more dispensable income and

Growing richer middle-class. The new breed of young executives with fatter pay-checks

Has led to more purchase power. Young India is booming and auto industry is basking

Under the sun. By the year 2010, India shall witness a boom in the small car segment

with Major car makers making their foray in India and India will have small cars from

General Motors, VW, Fiat, Ford, Toyota, Honda, etc.

The existing small cars would attract hefty discounts or would be phased out to compete

With the new cars laden with latest trendy features like ABS, airbags, automatic drive,

Etc. We expect that all the cars shall be placed in the price band of Rs 3 lakh to Rs 5

Lakh. Tata Nano is also set to roll out in the near future and the auto market waits eagerly

including auto critics and the Indian customers.

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Maruti Suzuki is the uncrowned king of the small car industry in India. It has already

made India as its manufacturing and exports hub for its small cars. It also has one of the

Largest product portfolios in India amongst all the other car makers. It is the largest auto

maker in India by sales and has various models like Alto, Wagon R, Zen, 800, and Swift.

Each car has made its mark in the small car segment with its unique features and price

factor. Maruti has made India as its small car manufacturing and exports hub. It caters to

The overseas demands of Suzuki models worldwide. Maruti Suzuki plans to launch A-

Star and Splash by the end of 2008.

Hyundai is the second largest auto manufacturer in India and has also made India as it’s

manufacturing and exports hub. It currently has its manufacturing plant in

Sriperumbudur, near Chennai, with an existing capacity of 600,000 units. It is planning to

expand its production capacity by nearly another 100,000 units. Hyundai has strong sales

figures in India and has witnessed more than 40 percent growth in the first four months

of 2008 it. It has strong contenders for the small car segment like Santro, Getz and i10. It

also plans to launch its new models of i20 and i30 in India powered with the new Kappa

engine currently being used in i10. I20 is expected to launch some time at the end of 

2008.

Fiat would also launch its small car Grand Punto by the year end with Tata Motors at its

tails with a new version of Tata Indica. The much awaited Tata Nano would also roll out

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in the last quarter of year 2008. India would also witness up! From General Motors and

Jazz from Honda. Toyota is also ready to launch its small car by 2010 in both petrol and

diesel options Renault-Nissan has also announced to launch a Nano-competitor being

manufactured in alliance with Bajaj.

The small car market in India is increasing by leaps and bounds. The indigenous

market for small cars now occupies a substantial share of around 70% of the annual car 

production in India of about one million. The main players in the car market like Tata

Motors and Maruti Udyog are fiercely competitive and more or less all the automobile

companies in India that have forayed into the production of small cars are trying to out-

do each other in terms of design, innovation, pricing, and technology, in order to gain

control of the small car market in India.

The biggest players in the Indian small car market are engaging in a healthy competition,

which has intensified since the Indian government decided to boost the small car sector.

In this regard, a reduction in the excise duties has been thought of. Even the engine

capacities are expected to be raised to 1500cc. The new small cars in India cars may

even be fueled by gasoline and diesel in the future. With all these facilities, it has been

estimated that the indigenous car market is going to move beyond the 3.5 million mark 

very soon.

Suzuki, which is now heading the Indian small car market has plans to invest an

additional US$ 650 million for research and development work in its Manesar Plant. This

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Plant will also be used for manufacturing diesel cars. Suzuki has decided to enter into a

joint-venture with Nissan to launch a new mini car model in India.

Even Hyundai Motors is on a similar investment spree for research work with a venture

of US$ 700 million in India. The two cars from the Hyundai stable - Santro and Getz are

already in the market and have been doing exceptionally well in the past few years. It is

expected that more and more foreign companies are likely to join the healthy race in the

Indian small car market.

One of the biggest players in China's car market, Volkswagen, has decided to invest in

the Indian small car market. It is supposed to invest a total amount of US$ 540 million

and manufacture nearly 100,000 mini cars on an annual basis.

Factors driving the demand for small cars in India

The increase in the demand for small cars can be attributed to the aspirational lifestyle of 

people which makes them strive for a car early on in life. The overall age for owning a

car has also decreased in recent years. Further, with the growing affluence of the rural

sector, owning a car, at least a small car, is a foregone conclusion in modern India.

However, since small cars are more affordable and utilitarian, the demand for them has

shot through the roof. This rising demand for small cars is attracting companies like

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General Motors which has increased its yearly production in India to 140,000 vehicles.

The Maruti 800 which is the most preferred car among the Indian middle classes can now

 be bought at a lower cost. Tata Motors has decided to launch a mini-car in 2008, which

will cost as less as US$ 2,200. Tata Motors is also going through a process of decision-

making, to launch a variety of mini-cars in association with Fiat. Honda has also decided

to increase its manufacturing capacity in India to 100,000 very soon. Therefore, the

leaders in the market for small cars in India can be seen to engage in a price war to make

more cars available to the majority of Indian citizens.

The small car market in India is witnessing the maximum activity and is all set for more

exciting times ahead, with more players from India and abroad joining the race.

Small Cars in India

Chevrolet Daewoo Fiat Hyundai Mahindra-Renault

Maini Maruti Suzuki Opel Skoda

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Current scenario

 Not very long ago, the only cars that were available in India were the Ambassador and

the Premier Padmini. The Ambassador is a replica of the Morris Oxford - an old British

car, while the Premier Padmini was a Fiat 1100 assembled in India.

All that was in pre-liberalisation India, which existed before 1991, when the first

liberalization measures were announced. Earlier, the production of the Maruti Suzuki 800

hatchback car in 1983 - a joint venture between Government of India and Suzuki Motors

of Japan, paved the way for a renaissance in the Indian automobile sector.

Post liberalization, India is on every car manufacturer's map. The reasons are not hard to

notice. Currently, India is the second largest two-wheeler market and the fourth largest

commercial vehicle market in the world. Not only is it the eleventh largest passenger car 

Market globally, but it is also expected to be the seventh largest by 2016.

Post liberalization, many foreign manufacturers have lined up and have setup base in

India. Other domestic manufacturers have also improved production levels and are in the

race for producing better models as well.

Some of the car manufacturers who have set up base in India are Audi, BMW, Chevrolet

Fiat, Ford, Honda, Hyundai, Mahindra, Maruti, Mercedes, Mitsubishi, Skoda, Suzuki,

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Tata, Toyota, Volkswagen, and Volvo. India's economic growth is booming currently.

These manufacturers have set up manufacturing facilities in India, or are importing cars

and spares to meet the demands of this growing market.

For example, companies like Ford are planning to make India a regional hub for exports

of both small cars as well as engines. According to Mr. Michael Boneham, President

Designate for Ford India, the company plans to export the small car and the engine for 

markets abroad. He indicated that one of the markets would be chiefly Ford Asia Pacific

Region while other markets are under consideration presently.

There are many reasons for the impressive growth of the Indian car industry. Some of 

these are comparatively easy availability of vehicle finance, attractive rates of interest,

and convenient installments.

Competition has forced manufacturers to be innovative and responsive to customer 

demands and needs. Now that India is not alien to quality and perfection, customer 

expectations have soared to higher levels. Depending upon customers needs, four 

segments - small, midsize, premium and sports utility vehicles currently represent the car 

market in the country.

A niche concept cars segment is also emerging wherein reputed re-modellers like DC

Chhabria cater to individuals who wish to remodel their vehicles to create concept cars

for their use. Contrarily, a segment is also emerging comprising of people who wish to

upgrade to cars from two wheelers. Tata already is in the process of launching the small

car Nano to suit this segment's needs. Many other car manufacturers such as Bajaj Auto

are also following suit and are in the process of coming up with their specific versions to

cater to this segment.

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Currently, there is high demand for cars across all these segments. With the growing

economy, people left with a lot of disposable income spend it towards meeting their 

mobility needs such as cars. Banks and other financial institutions have an assortment of 

vehicle loan schemes with attractive rates of interest and convenient installments.

These schemes encourage people to go in for loans to purchase cars of their choice.

Additionally, a convenient union budget in the current financial year (2008-09) has

worked in favour of the automobile sector, which has seen an uptrend in sales across

various segments.

The latest trend of new cars on Indian road has led to the emergence of an entirely new

market in second hand cars too. Many entrepreneurial and professional dealerships have

sprung up in many cities in India dealing in second hand cars.

The growth of the second hand market is not surprising. The new car market has grown at

an incredible pace in India. As mentioned, loans are easily available in the country for 

 purchase of new cars. Moreover, many people are now upwardly mobile. Therefore,

 people who were earlier part of the small car segment now have moved over to the

 premium car segment, and those in this segment have moved over to the luxury car 

segment.

Therefore, the trend is to get rid of the cars that defined them as part of the earlier 

segments and buy cars that identify them with the newer segments. Apparently, the desire

for newer cars and models is yet another reason. People get attracted by newer models,

which prompt them to acquire them. This makes them sell their current cars for 

reasonable resale values.

This phenomenon benefits those who want to buy cars, but are not able to afford new

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Ones. Many companies like Maruti Suzuki (Maruti True Value) have also established

resale showrooms where people can purchase genuine, good condition, second hand cars

at reasonable prices. With the emergence of favorable trends in the automobile sector in

India, what remains to be seen is how these developments will go a long way to

transform the mobility needs of the ordinary Indian.

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CHAPTER-III

UP COMING MODELS OF SMALL CARS-

Small cars are classified according to the price range which varies from 1 to 3 lakhs. It has the

capacity to carry 4 passengers- 2 adults, 2 children. These are basically entry level cars which

are preferred by service group and middle income group.

These cars are basically manufactured by - Maruti Udyog and Reva. While companies like

Volkswagon

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and Reva are yet to launch their models in the market.

SMALL CARS

MODEL COMPANY

Tata Nano Tata Motors

Maruti Alto

• Alto

• Alto Lx

• Alto Lxi 

Maruti Suzuki India Ltd.

Maruti 800

Maruti 800 STDBS III • Maruti 800 AC

BS III 

• Maruti 800 Duo

Maruti Suzuki India Ltd.

Maruti Omni

• 5 seater Maruti Omni 

• 8 seater Maruti Omni 

• LPG Maruti Omni 

Maruti Suzuki India Ltd.

Reva

• Reva AC

• Reva Standard

• Reva Classe

• Reva i 

Reva Electric Car Co.

Tata Magic Tata Motors

Toyota to Launch Small Car in 2011 -

The Japanese car manufacturer, Toyota Kirloskar Motors will roll out its new

compact car planned for the Indian car market in 2011.

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Planning to launch our small car especially focused on the Indian market, by the

end of 2011." Toyota will use its second plant at Bidadi near Bengaluru to

manufacture the small car. "Production will start in 2010 at our new plant at

Bidadi in Bengaluru."

They are investing Rs 3,200 crore for setting up our second manufacturing plant

in Bengaluru where the new car will be manufactured.

"In the first phase, plant has a capacity of 70,000 units and later on we will

increase it, according to the market demand." the project cost is still being worked

out.

The company also launched its new Innova in the Andhra Pradesh Market on

Wednesday.

The vehicle is available in Petrol variant. They said: "We will also launch CNG

version of Innova in 2010, which is under trails at Bengaluru plant and its price

can be about Rs 70,000 more than the regular version."

When asked about the crisis in Auto sector, they said: “We hope that things will

fall on places in the later of this year."

The company expects to be the market leader in MPV (multi-utility vehicle)

segment. “In 2008, the MPV market saw a drop by 13 per cent, but we managed

to keep it down to 6%."

For 2009, however, company targets to retain its volume of 44,000, which it sold

in 2008.

Reva All Set to Grow-

Think electric vehicles and the first company that springs to the Indian mind are

REVA. It was the first company in India which came out with a car running on

electricity as opposed to diminishing natural resources. Things have progressed

on a much larger scale since then and REVA has now spread across the world

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The expansion is happening in India as well with REVA all set to build a new

assembly plant in Bangalore. Thanks to the increased production, the new plant

will have a capacity of 30,000 units per annum which will also account for the

 plan of introducing one new model every year starting end 2009

The REVA electric car has seen a rise in its popularity in Europe, and is available

in seven countries in the continent with more names to be added in the list soon.

The company's current model, the REVAi, which is marketed in UK as G-Wiz

has a top speed of 80kmph. The new lithiumion powered REVA L-ion ,

announced in January and hits production in May and will offer improved

acceleration, a longer 120 km range accompanied by a six hour standard charge

and a one hour fast charge to 90 percent.

Just like the car, the company’s new facility in Bangalore will be one of the most

eco-friendly units around and will be built according to the LEED (Leadership in

Energy and Environmental Design) green building rating system standard, which

is an internationally accepted rating system and benchmark for evaluating and

certifying sustainable sites.

 Naturally based facilities for the plant will include rainwater harvesting, natural

light and ventilation, solar energy harvesting, steel structure technology and a C02

monitor. The employees on the other hand get a modern canteen, games room andelectric buses to transport them to and from work 

UPCOMING CAR MODELS in INDIA

CARS AWAITED

COMPANY NAME MODELS TYPE

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Aston Martin  AMV8 Vantage Luxury Car

Audi AG RF4 Premium Car

Bentley Brooklands coupe Luxury Car

BMW Minis Luxury Car

Chevrolet M 300 Mid Size Car

Chevrolet Cruse Luxury Car

Daewoo  World Truck Commercial Vehicle

Ford Motor Co. Focus Premium Car

Fiat Grand Punto Mid Size Car

Fiat Bravo Mid Size Car

General Motors Hummer Luxury Car

General Motors Cadillac Luxury Car

Hindustan Motors Grandis SUV

Honda Motors Jazz Small Car

Hyundai Motor Co. Avante Premium Car

Hyundai Motor Co. Santa Fe SUV

Hyundai Motor Co. i30, i40 Mid Size Car

Maruti Suzuki India Ltd Splash Mid Size Car

Maruti Suzuki India Ltd Kazshi Luxury Car

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Maruti Suzuki India Ltd Escudo SUV

Mahindra Ingenio SUV

Mahindra Hybrid Scorpio SUV

Mercedes Benz  C-Class Luxury Car

Mitsubishi Evolution X Luxury Car

Mitsubishi Icar Mid Size Car

Mitsubishi Gallant Premium Car

Mitsubishi i-MiEV Premium Car

Nissan Livina SUV

Nissan Infiniti G35 Mid Size Car

Reva Electric Car Co. Spl.Ed Small Car

Mahindra Renault Megane SUV

Mahindra Renault Sandero Luxury Car

Rolls-Royce Drophead Coupe Luxury Car

Skoda Auto Roomster SUV

Tata Motors Elegante Mid Size Car

Tata Motors Nano Small Car

Toyota Lexus LS 460 Luxury Car

Toyota Fortuner SUV

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CAR MODELS IN INDIA

Your search for the best online guide on Car Models in India ends here. In this section of Car Models we have provided an exhaustive data covering each and every aspect that you

need to know before going to  purchase a Car . Cars, which were considered as a luxury

good in the past, have now become a necessity in the fast paced life style. People want a

Car that is fuel-efficient, power packed and stylish as well. We have made your Car 

selection process so convenient that you need not go anywhere else to find details. You

can find here the key characteristics, color and variants, price, competition from other 

models, safety and technical specifications of every Car, packed with latest and

innovative technology with the eye catching features, launched in India.

POPULAR CAR SEGMENTS IN INDIA

Hatchback 

Hatchback car models consist of small cars that sell like hot cakes for their value for 

money advantage. Hatchback car is a small passenger car consisting of a full-height door 

at the rear that also includes a window and used from behind to access the cargo andluggage space. These kind of cars have two rows of seats. These cars are also defined as

five doors car having four access doors and a hatch or tail gate. In India the hatchback is

the most competitive car segment and its manufacturers like Maruti, Hyundai, Tata,

Chevrolet and Fiat launch their cars on regular basis to outshine each other and capture

the market

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Hatchback Cars in India

Chevrolet Aveo U-VA Chevrolet Spark Fiat Palio Stile

Ford-Fusion Fiat Grande Punto Hyundai i10

Hyundai i20 Hyundai Santro Xing Hyundai Getz

Honda Jazz New Maruti A-Star Maruti Alto

Maruti Swift Maruti WagonR Maruti Zen

Maruti Zen Estilo Skoda Fabia Maruti 800

 Tata Indica  Tata Nano New

Sedan

Sedan or Saloon is a car model with passenger carrying capacity of four or more persons

having two rows of seats and two or four doors with a separate trunk or boot at the rear 

side. Sedan cars, carrying high price tag with them, are featured with host of luxury

features like high-end entertainment system, integrated steering wheel, plush and high

class wood and leather work, classy looks, contemporary and fully efficient security

features. In India, recent years have witnessed big players, like Volvo, Volkswagen and

Skoda, entering into this segment featuring their sedans of pleasurable and comfy

luxuries.

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Sedan Cars in India

Ambassador Chevrolet Aveo Chevrolet Optra Magnum

Ford Fiesta Fiat Linea Honda City ZX

Honda Civic Honda Civic Hybrid Honda Accord

Hyundai Elantra Hyundai Sonata Embera Hyundai Verna

Hyundai Accent Maruti Baleno Maruti Esteem

Maruti Suzuki SX4 Maruti Swift Dzire Mitsubishi Cedia

Mitsubishi Lancer Mahindra Logan Skoda Laura

Skoda Octavia New Skoda Superb New  Tata Indigo CS

 Toyota Camry  Toyota Corolla  Toyota Corolla Altis

 Tata Indigo XL  Toyota Corolla Altis Volkswagen Jetta

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Sports Utility Vehicle (SUV)

In technical terms, a Sports Utility Vehicle is a vehicle that combines loading capability

of a  pickup truck and has passenger carrying space that is of a mini van. These type of 

vehicles are famous for their sturdy looks, strong on road presence and carries much

 powerful engine with high torque. SUVs are designed to run in any kind of terrain

without affecting its performance, comfort and safety. Therefore SUVs have become

ideal for families and friends for their long and adventure trips. In India there are so many

 big players in the field of  Sports Utility Vehicle segment like Tata, Maruti, Mahinda

Scorpio, Ford, Volvo and Honda.

Sports Utility Vehicles (SUV) in India

Chevrolet Captiva Ford EndeavourFord Endeavour Thunder

Plus

Honda CRV Honda CRV 2008 Mahindra Bolero

Mahindra Scorpio Maruti Grand Vitara XL-7 Maruti Gypsy King

Mitsubishi Montero Mitsubishi Pajero  Tata Safari

 Toyota Land Cruiser

Prado Toyota Fortuner New

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Luxury Cars

A Luxury Car is an expensive vehicle, designed and packed with high-end, super 

comfortable and convenient features for both the driver and the passengers. Luxury Cars

 provide ultra modern facilities for plush enjoyment of the high class drive with greater 

level of comfort in comparison to other Cars. Unlike the mass-production the Luxury

Cars are made in small quantities with a very heavy price tag sometimes in Crores also.

Owning a Luxury Car becomes a symbol of social prestige. In India Luxury Cars market

is growing at sound pace from last five years and big shots of this segment like Audi,

Bentley, Daimler-Benz, Volvo and Volkswagen are venturing in India to enchash the

market growth.

Luxury Car Models in India

Audi Q7 SUV Audi R8 Audi TT Coupe

Bentley Azure Bentley Continental GTC Mercedes Benz

Volkswagen Passat Volvo S80 Volvo XC90

Multi Utility Vehicle (MUV)

The Multi Utility Vehicle, abbreviated as MUV, is also know as  Minivan or Multi-

Purpose Vehicle (MPV). In technical terms, a MUVs are kind of automobile which are

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taller than a sedan and hatchback and provides larger interior space through their 

removable seats. Due to their characteristics of ample seating for 07-10 passengers, big

 boot space, the MUVs are preferred most by large families and corporate houses. Multi

Utility Vehicles are classified into three different variants of large, compact and mini. In

the Indian automobile market the mini version of MUVs are more popular & leading automakers like Tata Motors, Chevrolet, Maruti Udyog and Toyota are the key players of this

field.

LATEST NEWS RELATED TO UP COMING MODEL

Ford India will roll out a new small car in 2010. Ford will not

change its plan of investing in the Indian market and will increase the localisation of 

 parts to be competitive with other players.

The small car will be engineered for Indian roads and will be available in petrol and

diesel variants and will shorter than 4 metres in length. The petrol engine will displace

upto 1200cc and the diesel upto 1500cc fulfilling all the norms of a small car defined by

the Indian government getting a cut in excise.

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Tata Nano

Manufacture

r

 Tata Motors

Parent

company

 Tata Sons

Also called  The People's Car

Production 2008—present

Assembly Charodi, near Sanand-

Ahmedabad, Gujarat, India

Predecessor none

Class City car, Unlocalized, Tier 0

Body

style(s)

4-door hatchback sedan

Layout RR layout

Engine(s) 2 cylinder SOHC petrol Bosch 

multi-point fuel injection 

(single injector) all aluminium

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623 cc (38 cu in)

Transmissio

n(s)

4 speed synchromesh with

overdrive in 4th

Wheelbase 2,230 mm (87.8 in)

Length 3100 mm (122 in)[1]

Width 1500 mm (59.1 in)[1]

Height 1600 mm (63 in)[1]

Kerb weight 580 kg (1,300 lb)-600 kg

(1,300 lb)[2]

Fuel

capacity

15 L (4 US gal; 3 imp gal)[2]

Related Official website

Designer Girish Wagh, Justin Norek of 

 Trilix, Pierre Castinel[3]

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Maruti small cars to get next generation engines

Soon Maruti Suzuki cars will come with the next generation engines that are highly fuel

efficient and environment friendly.

The new petrol engine - K Series - with 1 liter capacity will fit with all Maruti Suzuki

small cars starting from the A Star model which is expected to be released in October.

The new engines developed as part of Rs 9,000 crore modernisation plan, will be

 produced at the Martui facility in Mansheer. According to Maruti Suzuki India managing

director S Nakanishi the new engine are aimed at achieving greater exports to European

and American markets while the same will be available in domestic market as well.

Maruti Suzuki will introduce the new Engine in its existing models like Zen Estilo, Swift

and WagonR. The present F and G series Euro III engines will be phased out by 2010, the

managing director said in the interview to The Economic Times.

The development of K-Series engines comes with the introduction of highly efficient

engines by rival Hyundai on it popular i10 model. The Hyundai i10 has 1.1 litre engines

while Chevrolet Spark comes strapped with 1.0 litre 4-cylinder SOHC engine.

Maruti’s first series of the next generation engine, M-series Euro IV petrol engine has

already been launched in the premium sedan SX4 last year.

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Hyundai Santro

In the field of mid size car, Santro Xing is capturing the market very rapidly. Its design,

style, space and other special features has made it one of the highest purchasable cars

amonganyeconomyclass.

It has five variants :

• Santro XK

• Santro XK (Non AC)

• Santro XL

• Santro XO

• Santro AT

• Santro CNG

Santro XK 

Along with the other features that are present in Santro XK (Non AC), other features

 present in this model are air conditioner, day and night inside rear view mirror, chrome1

radiator grille etc.

Santro XK (Non AC)

This model of Santro is without Air-conditioner. It has features like dual side impact

 beams, standard inside rear view mirror, clear head and rear lamps, half wheel cover, S

vinyl molded roof lining, 2 cup holders, seating capacity of 5, semi cloth upholstery,

chrome1 radiator grille, B and C pillar trims, low fuel warning etc.

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Santro XL

Along with the features available in Santro XK, added features in this model are 4 doors

CLS, passenger side OVRM, tinted glass, map pocket front door driver side, front door 

full size arm rest, door trim with fabric insert, hydraulic power steering, power windows

(front) etc.

Santro XO

Along with the features present in other models, there are some special features present

exclusively in this model like B/C bumper, waistline molding, chrome2 radiator grille,

rear parcel tray, deluxe floor console, exclusive molded door trim, driver side seat under 

tray, internally adjustable OVRMs, rear wiper and washer, rear defogger, passenger side

vanity mirror etc.

Santro AT

Excluding the special features in other models , Santro AT has almost all the common

features of other models.

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Santro CNG

Hyundai Motor India adds to its glitter by launching Santro CNG thus making it even

more economical and eco-friendly car. This new variant of sSantro offers its buyers with

one more option to muse over because of its estimated low running cost of only Rs.1/km

thus increasing the savings of the consumer up to 60- 70% . To ensure the better safety,

CNG kits contains advanced Lambda control system to provide Euro III emission norms.

The car also has an optional manual selector switch which makes the user to make a

choice between gasoline or CNG. The CNG on-board cylinder has an approximate

capacity of 12 kg with a 2 year warranty on CNG kit and its fitments.

Chevy Aveo

The 2009 Chevy Aveo ranks 32 out of 35 Affordable Small Cars. This ranking is based

on our analysis of 66 published reviews and test drives of the Chevy Aveo, and our 

analysis of reliability and safety data.

The Aveo's performance pales in comparison to sportier models from Honda or Mazda,

and its list of safety features is pretty short. But the Aveo does offer one of the best

sticker prices for the segment.

The 2009 Chevrolet Aveo scoots down the road, can hold a substantial amount of cargo

with the rear seats folded, and has a reasonable amount of space for four passengers,

maybe five.

Still the Aveo's good points don't clearly distinguish it from other subcompacts, nor does

it have enough quality or fun driving dynamics to earn it a slot among the class leaders.

And as expectations for the affordable class become greater, the Aveo obviously lags

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 behind competitors for making anti-lock brakes an optional feature and not offering side

curtain air bags at all. But Chevrolet is a key component of the struggling auto industry,

and GM intends to focus on Chevy cars as well as Buick, Cadillac and GMC

automobiles, while selling, shrinking or closing the Pontiac, Saturn, Saab and Hummer 

 brands.

If you're concerned with the lack of standard safety features on the Aveo but still want a

value-priced hatchback, the 2009 Nissan Versa might be worth your consideration. For 

less than $11,000 the Nissan Versa has six standard air bags, plus it earns top safety

scores for its performance in front and side crash tests.

The Aveo sedan and its hatchback counterpart, the Aveo5, do have a low MSRP and

great gas mileage working in their favor. One of the Aveo's enhancements for 2009 is

variable valve timing for its four-cylinder engine, which increased its fuel efficiency

along with its overall appeal.

Chevy Cobalt

The 2009 Chevy Cobalt ranks 22 out of 35 Affordable Small Cars. This ranking is based

on our analysis of 73 published reviews and test drives of the Chevy Cobalt, and our 

analysis of reliability and safety data.

The Cobalt is an adequate performer with great fuel economy and enough upscale cabin

options to entice a large audience. But its class-leading competitors have similar qualities

and more comfortable seating.

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Reviewers with realistic expectations are pleased with the Chevy Cobalt. Those writers

highlight the car's dependable performance, available entertainment options, and

noteworthy gas mileage. But others get stuck on the car's small dimensions and less than

definitive styling.

If you need a roomier car with a bolder visual statement, the VW Rabbit might appeal to

you. Reviewers are surprised by the amount of space inside the Rabbit, and also

appreciate the car's unique VW design elements.

But one thing the Cobalt has going for it over the Rabbit is the chance to buy domestic.

First introduced in 2004 to replace the well loved Chevy Cavalier, there were rumors

the 2009 Cobalt was about to be replaced itself. But small engine cars are experiencing a

renaissance, so while its successor the Chevy Cruze is well on its way, production on the

Cobalt might continue as well. Even with the uncertainty facing the auto industry and the

fate of brands like Pontiac, Saab, Saturn or Hummer, General Motors intends to focus

 product and marketing on brands like Buick, Chevrolet, Cadillac and GMC.

For 2009, the Chevy Cobalt comes as a two-door coupe or four-door sedan in LS, LT and

 performance tuned SS Turbo trims. The Sport model has now been discontinued.

Be sure to check for current Chevy deals that may be available on a new Cobalt.

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CHAPTER -IV

CURRENT STATUS OF AUTO

INDUSTRY IN INDIA

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Auto Industry Struggling-

Overall production in January 2009 fell by 11.92 percent over the same month last year.

January sales are always more than December sales since December sales are always

subdued because of ‘model year change’ in January, which fetches better value of a

vehicle in the used vehicle market. The cumulative production data for April 2008 – 

January 2009 shows production growth of 2.32 percent over April 2007 – January 2008.

However, with lower prices and huge discounts, though January 2009 sales registered

more than December 2008 sales, they were not enough to make the year on year growth

 positive. Since the sale of auto industry largely depends on the financing by the

commercial banks therefore, the current scenario of liquidity crunch and real asset falls

with the financial instrument has also contributed in reduction sales of automobiles.

However, the government of the India has taken measures in the interest of the economy

to reduce the lending rate in many leading banks including rate SBI is already provide

allowance to reduce the burden

Domestic Sales: Passenger Vehicles segment registered de-growth with (-) 1.21 percent

growth during April – January 2009 over April – January 2008. Passenger Cars fell by

0.62 percent, Utility Vehicles fell by 7.38 percent. However, Multi Purpose Vehicles

grew by 6.33 percent during this period. The sales in January 2009 for passenger 

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vehicles fell by 6.88% over January 2008 - with all sub-segments registering negative

growth.

The sales of Commercial Vehicles Segment again registered severe de-growth. The

segment declined by 19.83 percent during April – January 2009 as compared to the same

period last year. While Medium & Heavy Commercial Vehicles declined by 29.24

percent, Light Commercial Vehicles also recorded de-growth at (-) 8.32 percent. In

January 2009 commercial vehicles sales fell by 50.96 percent compared to 2008.

M&HCV fell by 67.16 percent and LCV fell by 30.11 percent. Also, buses (M&HCV)

fell by 14.30 percent and even the smaller buses also fell by 14.72 percent.

Three Wheelers sales registered decline with growth rate being (-) 6.49 percent in April – 

January 2009. While Passenger Carriers grew by 12.32 percent during April – January

2009, Goods Carriers declined at (-) 39.02 percent. In January, three wheelers fell by

12.29 percent over same month last year.

Two Wheelers registered marginal growth of 1.27 percent during April – January 2009.

Mopeds and Scooters grew by 3.36 percent and 8.42 percent. However, Motorcycles

went into negative territory at (-) 0.30 percent. Electric two wheelers segment grew by

38.40 percent. However, Two Wheelers sales registered (-) 3.95 percent growth rate in

January 2009 over same month last year 

Exports: The period from April 2008 – January 2009 saw automobile exports

registering a growth of 30.47 percent with all segments except Commercial Vehicles,

registering positive growth. Passenger Vehicles and Two Wheelers segment grew by

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59.55 and 29.86 percent respectively. Three Wheelers exports grew by 10.88 percent.

However, exports of Commercial Vehicles declined at (-) 18.99 percent during this

period.

Small Car Competition Heating Up Among Automakers -

“Tiny and affordable, subcompact vehicles have come a long way from their

"econobox" past.”

• The small, entry-level vehicles used to offer few frills and raised concerns over safety.

But a combination of factors -- elevated gas prices, a focus on slick designs and

technology marketed to young drivers -- have helped give the "B-cars" more visibilityin the crowded auto marketplace.

• Japanese automakers brought three new models to showrooms last year, the Toyota

Yaris, Honda Fit and Nissan Versa, driving interest in the segment. The newcomers

 joined the Chevrolet Aveo, which General Motors Corp. builds through its

relationship with South Korea-based Daewoo, Kia Motors America's Spectra and Rio

models and the Hyundai Accent.

• Car enthusiasts are not expected to see any major splashes in the segment at this

month's North American International Auto Show, which begins media previews on

Sunday. Two niche small vehicles will be shown -- BMW AG will raise the curtain

on the new 2007 Mini Cooper while DaimlerChrysler AG is showing its two-seater 

Smart for two, which is expected to appeal to congestion-pressed city drivers.

• But the segment is expected to grow. Sales of seven vehicles in the category were up

nearly 50 percent in 2006, to more than 290,000 units, according to figures released

 by Auto data Inc. It represents only a small slice of the U.S. car market, but analysts

said the new models and $3 a gallon gas prices last summer created some buzz.

• Subcompacts have made strides in recent years, following a less-than-stellar launch of 

the Toyota Echo a few years ago. The new models range in price from about $10,000

to $16,000 and come with designs that make the vehicle feel roomier and have safety

improvements.

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• The vehicles typically present safety challenges when struck by larger vehicles. But

many of the new subcompacts offer standard side air bags and several have received

solid ratings in crash tests by the government and the insurance industry.

• "What's fascinating is that while the vehicles are smaller, they're so much better, so

much safer,"

• What they lack in size, the vehicles overcome in technology, perks craved by young

drivers. Several provide jacks for iPods and other MP3 players and powerful stereo

systems. The Versa, for example, offers the Bluetooth hands-free phone system while

the Aveo has options such as heated outside mirrors and controls for the stereo system

on the steering wheel.

• The strong showing could lead to increased subcompact production. Honda Motor Co.

sold about 28,000 versions of the Fit amid high demand. Honda has not released any

 production volumes for 2007.

• Ford Motor Co. has shown interest in developing a B-car for North America while

Mazda Motor Corp. offers a Mazda2 subcompact in Europe -- called the Demio in

Japan -- leading some analysts to predict that the automaker will soon offer one in the

U.S.

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CHAPTER-

V44

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RESEARCH METHODOLOGY

MEANING OF RESEARCH- Research in common parlance refers to a search

for knowledge. One can also define research as a scientific and systematic research for 

 pertinent information on a specific topic. In fact, research is an art of scientific

investigation.

Research can be defined as “logical and systematized application of the

fundamentals of science to the general and overall questions of a study , and scientific

techniques which provides precise tools, specific procedures and technical , rather than

 philosophical means for getting and ordering the data prior to their logical and

manipulation.”

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Classification of Research

Research can be classified into two broad categories:

Basic Research: It is sometimes called ‘fundamental’ research, ‘theoretical’ research or 

‘pure’ research. It aims at expanding the frontiers of knowledge and does not directly

involve pragmatic problems. The essence of basic research is that it addresses itself to

more fundamental questions and not to the problems with immediate commercial

 potential.

Applied Research: It is also called ‘decisional’ research, solutions and the possible

outcomes of each alternative. Unlike basic research, it is prompted by commercial

considerations.

Objectives of research

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies

with this object in view are termed as exploratory or formularize research

studies);

2. To portray accurately the characteristics of a particular individual , situation or a

group (studies with this object in view are known as descriptive research studies);

3. To determine the frequency with which something occurs or with which it is

associated with something else (studies with this object in view are known as

diagnostic research studies);

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4. To test a hypothesis of a casual relationship between variables (such studies are

known as hypothesis – testing research studies).

Types of Research

The basic types of research are as follows:

1. Descriptive vs. Analytical: Descriptive research includes surveys and fact-

finding enquiries of different kinds. The major purpose of descriptive research is

description of the state of affairs, as it exits at present.

The methods of research utilized in descriptive research are survey methods of all kinds,

including comparative and correlation methods.

2. Applied vs. Fundamental: Research can either be applied (or action) research or 

fundamentals (or basic or pure) research. Applied research aims at finding a solution for 

an immediate problem facing a society or an industrial/business organization, where as

fundamental research is mainly concerned with generalization and with the formulation

of the theory.

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3 Quantitative vs. Qualitative Quantitative researches is based on the measurement

of quantity on amount. Qualitative research is concerned with qualitative phenomenon

relating to or involving quality or kind

4. Conceptual vs. empirical: conceptual research is that related to some abstract ideas

or theory. It is generally used by philosophers and thinkers to develop new concepts or to

reinterpret existing ones. Empirical Research relies on experience or observation alone,

often without due regard for system and theory.

RESEARCH DESIGN

A research project conducted scientifically has a specific framework of research from the

 problems identification to the presentation of the research report. This framework of 

conducting research is known as the Research design.

According to kerlinger, “Research design is the plan, structure, and strategy of 

investigation conceived so as to obtain answers to obtain answers to research questions

and to control variance.

Features of Research Design

1. It is Plan that specifies the sources and types of information relevant to the

research problem.

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2. It is a strategy specifying which approach will be used for gathering and

analyzing the data.

3. It also includes the time and cost budgets since most studies are done under these

two constraints.

Types of Research Design

1. Exploratory Research: Exploratory research studies are also termed as

formulative research studies. The main purpose of such studies is that of 

formulating amore precise investigation or of developing the working hypotheses

from an operational point of view. In it the focus is on the discovery of ideas

.various methods for collecting information for this research are as follows:

2. Study of secondary data : The quickest and most economical way to find possible

hypotheses from the available literature. The past researchers may be suitable

sources of information to develop new hypotheses.

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3. Survey of knowledgeable persons or experience survey: It means the survey

means the survey of people who have had practical experience with the problem

to be situated

4. Case study : This research method has long been considered “soft” or 

nonscientific, but with the modern surge in qualitative research the case has

received more attention.

5. Conclusive Research : It provides information, which helps the executive to make

a rational decision. The marketing executive has to arrive at a suitable decision

from the various alternative decisions. It may be done through experimental or 

descriptive research design.

6. Descriptive research : As their name implies, are designed to describe something – 

for ex, the characteristics of users of a given product, the degree to which product

use varies with income, age, sex or other characteristics. Its analysis can be

divided into two classes:

Longitudinal studies

Cross sectional studies

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7. Experimentation and Ex post Facto Research design: It will refer to that research

 process in which one or more in unconfused fashion.

Here, I had used Conclusive-Descriptive research design in my project.

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RESEARCH METHODOLOGY USED IN THIS RESEARCH

Type of research conclusive - descriptive

Type of sampling convenience sampling

Sample size 100

Area of the study Bareilly

Data collection instrument Structured Questionnaire

What is conclusive research?

As the term suggests, conclusive research is meant to provide information that is useful

in reaching conclusions or decision-making. It tends to be quantitative in nature that is to

say in the form of numbers that can be quantified and summarized. It relies on both

 secondary data, particularly existing databases that are reanalyzed to shed light on a

different problem than the original one for which they were constituted, and primary

research, or data specifically gathered for the current study . The purpose of conclusive

research is to provide a reliable or representative picture of the population through the

use of a valid research instrument. Conclusive research can be sub-divided into two major 

categories:

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1. Descriptive or statistical research, and

2. Causal research 

What is Descriptive Research?

This research is the most commonly used and the basic reason for carrying out

Descriptive research is to identify the cause of something that is happening. For instance,

This research could be used in order to find out what age group is buying a particular 

Brand of cola, whether a company’s market share differs between geographical regions

Or to discover how many competitors a company has in their marketplace. However, if 

The research is to return useful results; whoever is conducting the research must comply

With strict research requirements in order to obtain the most accurate figures/results

Possible.

What is Causal Research?

Casual Research explores the effect of one thing on another and more specifically, the

Effect of one variable on another. The research is used to measure what impact a specific

Change will have on existing norms and allows market researchers to predict

Hypothetical scenarios upon which a company can base its business plan. For example, if 

A clothing company currently sells blue denim jeans, casual research can measure the

Impact of the company changing the product design to the colour white. Following theResearch, company bosses will be able to decide whether changing the colour of the

 jeans

To white would be profitable. To summarize, casual research is a way of seeing how

Actions now will affect a business in the future.

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Convenience sampling

Convenience sampling is that technique where the researcher is interested in getting an

Inexpensive approximation of the truth. As the name implies, the sample is selected

Because it is convenient. This non – probability method is often used during preliminary

Research efforts, without incurring the cost and time required to select a sample.

DATA COLLECTION INSTRUMENT

Data used in the research is both primary and secondary data. Secondary data is

Collected from company’s website, Wikipedia. Marketing journals etc.

Whereas primary data is collected with the help of a structured questionnaire and a

Survey was conducted on 120 respondents.

Areas covered were

Rampur Garden

Civil Lines

Rajendra Nagar 

Subhash Nagar 

Green Park 

Mahanagar 

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Ashish Royal Park 

Ramvatika

Bareilly Cantt

 

CHAPTERVI  DATA ANALYSIS AND ITS

  INTERPRETATION

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Q.1 which brand and model of the small car do you have?

a. Hyundai ( santro, getz, i10 )

b. maruti ( 800, zen estilo , wagon r, a star )

c. tata ( indica)

d. Chevrolet ( spark )

Santro 26

Getz 7

I10 2

Maruti 800 18

Zen estilo 7

Wagon r 15

A star 1

Indica 14

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Spark 10

0%

5%

10%

15%

20%

25%

30%

  s  a  n   t  r  o

  g   e   t  z    i  1

  0

  m  a  r  u   t   i  8

  0  0   z  e  n

  w  a  g 

  o  n   r

  a  s   t  a

  r

   i  n  d   i  c  a

  s  p  a  r   k

Santro ( Hyundai) leads the tally with maximum 26% market share

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Q.2 For how many years do you own this car ?

0-1years 17

1-3 years 37

3-5 years 30

More than 5 years 16

0%

5%

10%

15%

20%

25%

30%

35%

40%

0-1

years

1-3

years

3-5

years

>5

years

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Maximum no. of customers own their car for 1-3 years.

Q.3 Are you satisfied with your decision to buy this car ?

Yes 69

no 31

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes no

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69% customer’s are satisfied with their decision to buy this car.

Q.4 Any aspect which does not satisfy you ?

Fuel efficiency 33

Cost is too high 25

After sales service is poor 23

Miscellaneous reasons 19

0%

5%

10%

15%

20%

25%

30%

35%

fuel effici. cost after ss. misce.

Miscellaneous reasons included interiors of the car , deficiency in

functional parts etc.

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Q.5 if you plan to buy a new car in future , will that be a small one or

a luxury car ?

Small car 43

Luxury car 57

0%

10%

20%

30%

40%

50%

60%

small car luxury car  

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57% customer’s will like to buy a luxury car in future.

Q.6 Do you think that more variety of small cars should be introduced

in the market ?

Yes 73

no 27

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes no

Customer’s are interested in more varieties of small car’s to have better

Options.

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Q.7 Do you think that inventions like TATA NANO will be successful or

not ?

Yes 64no 36

0%

10%

20%

30%

40%

50%

60%

70%

yes no

36% customer’s are doubtful and susceptible to the success of Tata

Nano

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Q.8 Do you keep a track of latest launches and reviews regarding small

cars ?

Yes 43no 57

0%

10%

20%

30%

40%

50%

60%

yes no

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57% customer’s do keep a track of latest happenings in the small car

market.

Q.9 Does your car provide you a requisite social status ?

Yes 62no 38

0%

10%

20%

30%

40%

50%

60%

70%

yes no

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62% customer’s say “yes” their car provides them a requisite social

status.

Q.10 Do you like to suggest something ?

It was an open ended questions and therefore answers were varied.

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CHAPTER

VII  FINDINGS

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• Santro is the most preferred car in the market, followed by Maruti

800, Wagon R and Indica.

• Consumers have purchased the car mostly in the past 1-3 years.

• 69% customers are satisfied with their decision to purchase the current

car they own while 31% are not satisfied.

• When asked regarding which aspect the customer’s are dissatisfied,

the answer was fuel efficiency, cost disadvantage followed by after 

sales services.

• 57% customer’s said they would like to purchase a luxury car in

future.

• Consumers are anxious regarding more no. of small cars being

introduced in the market to have more options and variety.

• 36% customer’s are susceptible regarding the success of Tata Nano

and feel it will dilute the image of TATA.

• 57% customers do keep a track of market happenings in the small car 

segment.

• 62% customer’s said yes their car provides them requisite social

status.

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CONCLUSION

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• The conclusion of the survey can be that Hyundai Motors are the

leading small car seller in the market and by virtue of their most

popular model, Santro are leading the Race.

• Consumer’s, mostly are satisfied with their current choice hence it

can be concluded that overall performance of the sector is

satisfactory.

• The desire among the consumer’s to have more variety in the

segment is quite strong.

• Consumers although satisfied, would like to have luxury car in

future which shows their burgeoning desire towards that segment.

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RECOMMENDATIONS

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• Cars must provide cost satisfaction and fuel efficiency.

• Onus must be on maximizing customer satisfaction.

•Better and more modified versions must continually beintroduced in the market

• After sales services must be efficiently provided to customers.

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BIBLIOGRAPHI

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www.carworld.com

www.carindia.com

Auto expo magazine

Indian car show (TV show)

Economic Times

Times of India

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QUESTIONAIRE

Q.1 which brand and model of the small car do you have?

A. Hyundai (santro, getz, i10)

B. maruti (800, Zen estilo, wagon r, a star)

C. Tata (indica)

D. Chevrolet (spark)

Q.2 For how many years do you own this car?

a. 0-1 years b. 1-3 years c.3-5 years d.>5 years

Q.3 Are you satisfied with your decision to buy this car?

a.yes b. no

Q.4 Any aspect which does not satisfy you?

A. fuel efficiency B. cost is too high C. after sales service is poor 

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D. miscellaneous

Q.5 if you plan to buy a new car in future, will that be a small one or 

a luxury car?

a. small car b. luxury car 

Q.6 Do you think that more variety of small cars should be introduced

in the market?

a.yes b. no

Q.7 Do you think that inventions like TATA NANO will be successful or 

not?a.yes b. no

Q.8 Do you keep a track of latest launches and reviews regarding small

cars?

a. yes b.no

Q.9 Does your car provide you a requisite social status?

a. yes b.no

Q.10 Do you like to suggest something?

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

PERSON DETAILS:

Name -

Occupation -

Address -

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No.of cars having -

Phone no. -

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