Final Project Report

A Comparative Study on “Consumer Behavior between Maruti Swift and Hyundai i– 20”Mysore.

INTRODUCTION

This project is an attempt to give a comparison between Maruti Suzuki Swift and Hyundai i20. It

aims to know the marketing strategies, performance analysis and consumer perception regarding

these cars along with factors which influence their choice.

As the number of middle and upper middle class families increasing in India, is on the rise

with demand for hatchback or luxury small cars is in India. Maruti Suzuki offers its

customers economical & budget cars for its customers & Hyundai offers relatively high

luxury in its vehicles and a highly efficient service network to back up its sales team.

This comparative study covers Maruti’s & Hyundai’s history that dates back over many

years. It also focuses on Maruti’s & Hyundai’s presence in India and its impact in India as

compared to that of other similar segments. A questionnaire has been devised to find out what

makes respondents to buy either of the two cars and inferences have been derived from the

data collected. Finally based on the above findings and report suggestions conclusions have

been drawn what parameters makes people to buy out of the two cars.

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INDUSTRY PROFILE

AUTOMOTIVE INDUSTRY IN INDIA

One of the major changes in the industry has been the opening up and growth of several

emerging markets. India is one of the most important emerging car economies in the world

today. The Indian automobile industry comprises of the commercial vehicles, multi-utility

vehicles, passenger cars, two wheelers, three wheelers, tractors and auto components.

The government of India’s new automobile policies like reduction of excise duty to 40% and

import duties to 50% attracted a large number of automobile companies to India which

includes General motors, Ford, Toyota, BMW, Chrysler, Honda, Hyundai, Fiat, Hindustan

motors, Skoda Auto, Telco and one indo-Japanese venture, Maruti already in the passenger

car market with 70% of the market share which makes it the numerous Uno player in

automobile market.

In the initial years after the independence Indian automobile industry was plagued by

unfavorable government policies. All it had to offer in the passenger car segment was a 1940s

mirrors model called the Ambassador and a 1960s Suzuki-derived model called the Maruti

800. The automobile sector in India underwent a metamorphosis as a result of the

liberalization policies initiated in the year 1991. Measures such as relaxation of the foreign

exchange and equity regulations, reduction of tariffs on imports, and refining the banking

policies played a vital role in turning around the Indian automobile industry. Until the mid

1990s, the Indian auto sector consisted of just a handful of local companies. However, after

the sector opened to foreign direct investment in 1996, global majors moved in. Automotive

industry in India also received an unintended boost from stringent government auto emission

regulations over the past few years. This ensured that vehicles produced in India conformed

to the standards of the developed world.

Indian automobile industry has matured in the last few years and offers differentiated

products for different segment of the society. It is currently making inroads into the rural

middle class market after its inroads into the urban markets and rural rich. In the recent year

Indian automobile sector has witnessed a slew of investments. India is on every major global

automobile player’s radar. Indian automobile industry is also fast becoming an outsourcing

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hub for automobile companies worldwide, as indicated by the zooming automobile exports

form the country.

Due to rapid economic growth and higher disposable income it is believed that the success

story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

• Second largest two-wheeler market in the world.

• Forth largest commercial vehicle market in the world.

• Forth largest passenger vehicle in Asia and 11th largest in the world.

• Expected to become the world’s third largest automobile market by 2030. Behind

only china and USA.

• The largest three wheeler market in the world.

• The fifth largest commercial vehicle market in the world.

• The fourth largest tractor market in the world.

ORIGIN OF THE CAR

In 1769 the very first self-propelled car was built when Nicolas Cugnot, a French military

engineer designed a steam powered road-vehicles

The vehicle was built at the Paris Arsenal, and was used by the French Army to move

cannons. It had three wheels with the engine in the front along with the boiler. While

Cugnot's 'car' was capable of attaining speeds of up to 6cars/hour, it was far too heavy and

slow to be of practical use.

In 1771 he again designed another steam-driven engine that ran so fast that it rammed into a

wall, recording the world’s first accident.

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In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. He to

develop the world’s first vehicle to run on such an engine, one that used a mixture of

hydrogen and oxygen to generate energy, subsequently used this.

This spawned the birth of a number of designs based on the internal combustion engine in the

early nineteenth century with little or no degree of commercial success. In 1860 thereafter,

Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he

again built an experimental vehicle driven by his gas-engine, which ran at a speed of 3

kms/hour. These cars became popular and by 1865 could be frequently espied on the roads.

The next major leap forward occurred in 1876 when the four-stroke engine was devised.

Gottileb Damlier and Nicolas Otto worked together on the mission till they fell apart.

Daimler created his own engines that he used both for cars and for the first four wheel

horseless carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of

creating his own advanced tri-cycle, which proved to be the first true car.

After all this experiments we can say that the complete car was birth only in 1885 that the

first real car rolled down on to the streets. The earlier attempts, though successful, were

steam-powered road-vehicles.

The season of experiments continued across the seas in the United States where Henry Ford

began work on a horseless carriage in 1890. He went several steps forward and in 1896,

completed his first car, the Quadricycle in 1896. This was an automobile powered by a two-

cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in 1908 he

catapulted his vehicle, Model ‘T’ Ford to the pinnacle of fame. Continuing with his

innovations, he produced this model on a moving assembly line, thus introducing the modern

mass production techniques of the automobile industry.

BEGINING OF CAR IN INDIA

From the singsong rhythm of the bullock cart to the jet-age, India has traveled a long way.

An average Indian’s dream car may not be the design Honda or the stately limousine, but he

sure can dream, and afford, the Maruti now.

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It was in 1898 that the first motorcar rode down India’s roads. From then till the First World

War, about 4,000 cars were directly imported to India from foreign manufacturers. The

growing demand for these cars established the inherent requirements of the Indian market

that these merchants were quick to pounce upon.

The Hindustan Motors (HM) was set up in 1942 and in 1944; Premier Autobackmobile

(PAL) was established to manufacture automobiles in India. However, it was PAL who

produced the first car in India in 1946, as HM concentrated on auto components and could

produce their first car only in 1949.

It was left to another company, Mahindra and Mahindra (M&M) to manufacture utility

vehicles, namely the American Jeep.

In the 50s, the Government of India granted approval to only 7 car dealers to operate in

India - HM, API, ALL, SMPIL, PAL, M&M and Telco. he protectionist policies continued to

remain in place. The 60s witnessed the establishment of the two-three wheeler industry in

India and in the 70s, things remained much the same.

INDIAN AUTOMOBILE HISTORY

Indian Automobile History can be divided in 4 parts

Pre 1984 period: In this era cars were considered a luxury product, government had

full control over the production, Manufacturers were given the license to produce a

predetermined quantity, and expansion was restricted by government. In this period

market was dominated by six licensed manufacturers: TELCO, Ashok Leyland,

Mahindra & Mahindra, Bajaj Auto, Hindustan Motors, and Premier Automobiles.

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1985 – 1990: In this period Maruti Udyog was formed with the joint venture between

GOI and Japanese major Suzuki. This led to give a better choice to the consumers in

India.

1991 – 2000: Economic liberalization started in 1991 in India which later on helped to

delicense the passenger car segment in 1993. Hero Honda emerged as a major player

in two wheeler segment. In this era a much sophisticated and unregulated automobile

market started growing with the help of new foreign technology and huge investment

made by international player, as the competition increases advanced technology was

introduced to be competitive in market. A large chunk of money was spent on

increasing the service presence so as to support on road vehicles. Auto finance also

started as a key factor to affect the demand for the vehicle.

Post 2000: As the competition increases the government also helps the industry by

removing quantitative restriction and allowing 100 % FDI in Automobile industry. It

also gave helping hand to various Local manufacturers who initiated production of

Vehicle.

Manufacturers focused on improving the output keeping in mind Quality and

environment prospects.

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Automobile industry is one of the fastest growing Industries in India, Currently India is

ranked as:

6th in Commercial and Passenger vehicle manufacturing.

Asia’s 3rd largest exporter of Passenger cars.

One of the fastest growing market

One of the highest contributors in Indian GDP.

The Indian auto industry grew at 13 per cent in last five years.

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CURRENT STATISTICS

Mainly Automobile Industry includes:

Passenger Vehicles

Commercial Vehicles

Three Wheelers

Two Wheelers

As per latest data of SIAM the automobile industries market is divided as:

(Source: SIAM - Society for Indian Automobile Manufacturers)

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Passenger Vehicles

Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share

while the Challenger Hyundai is far behind it.

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SWOT ANALYSIS OF THE AUTOMOBILE INDUSTRY

STRENGTHS1. Low labor cost advantage

2. Government subsidies for manufacturing plants

3. Strong designing skills etc.

WEAKNESS1. Low productivity of labor.

2. High interest and overheads costs make the production less competitive

3. Different forms of taxes increase the overall cost of production

4. Low investment in R&D.

5. Less Infrastructural development.

OPPORTUNITIES1. Commercial vehicles: as Supreme Court ban on overloading.

2. Rapidly growing mining and construction activity.

3. Reduction in excise duties.

4. Continuous increasing rural demand.

5. Increase in the per capita income of people.

THREATS1. A continuous increase in input costs

2. Increasing interest rates

3. High competition

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REASON FOR HIGH GROWTH

The Indian automobile industry’s growth is driven by various factors which include:

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Reason for High growth of Automobile Industry in

India

Economic Growth Rural Economy

Disposable IncomeInfrastructure Development

Low cost Labor

Large local demand


PROBLEMS OF AUTOMOBILE INDUSTRY

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Current problems of Automobile Industry

Swelling interest rates

Inflationary trendsRising fuel prices

Lower growth rate


Few Salient features of Automobile industry

Supply: Overall Indian Automobile industry has a marginal excess capacity.

Demand: It’s largely cyclical and dependent on various socio economic factors eg: per capita

income, disposable income, Seasonality etc.

Entry Restriction: Due to high amount of capital involved, Distribution network,

Availability of auto components and higher technological advancement.

Bargaining power of supplier’s: Low, due to stiff competition among rivals.

Bargaining power of customers: Very high, due to high availability of options.

Competition: High competition as technological advancement takes very less time, large no.

of manufacturers.

Even after high growth of industry, India is very less penetrated. As per a survey India has

only 10 passenger vehicles, 4 commercial vehicles and 43 two wheelers per 1000 people.

While globally, these figures are very high. For instance, Germany has 565 cars Korea has

238 cars and Thailand 57 cars per 1000 population. So there is a huge scope for Automobile

Industry.

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COMPANY PROFILE

Maruti Suzuki

In early 1980s Indian Govt decided to produce a small car, which would be within buying

reach of Indian middle class. The obvious place to shop for technology was Japan, which had

developed world class capabilities in small cars by that time. It was not Toyota, or Nissan, or

Honda ,three largest player in Japan, but Suzuki, a much smaller company with strong

capabilities in making small cars. Suzuki grabbed the opportunity with both hands and

formed a joint venture with govt. called Maruti Udyog.

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the

leader of the Indian car market for about two decades. Its manufacturing plant, located some

25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum,

with a capability to produce about half a million vehicles.

Maruti rolled out its 1st car, Maruti 800 with 800cc engine in December 1983. This model

targeted at masses and was launched as “People’s car”. In early 2003, Maruti Udyog, a joint

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venture between Suzuki and Indian Govt. dominated India’s automobile market with 54%

market share and with annual production capacity of 5lac cars. The company dominated

Indian Small car market with a share of 100% in A seg, 36% in B seg and 86% overall.

The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car

Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car

Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor

Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen

and Esteem, completely designed and styled in-house. Maruti's contribution as the engine of

growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire

generation of Indian middle class, is widely acknowledged. Its emotional connect with the

customer continues

Maruti tops customer satisfaction again for 8th year in a row according to the J.D. Power Asia

Pacific. India Customer Satisfaction Index Study. The company has also ranked highest in

India Sales Satisfaction Study.

In keeping with its leadership position, Maruti supports safe driving and traffic management

through mass media messages and a state-of-the art driving training and research institute that

it manages for the Delhi Government.

The company's service businesses including sale and purchase of pre owned cars

(TrueValue), lease and fleet management service for corporate (N2N), Maruti Insurance and

Maruti Finance are now fully operational.

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Current Cars in Maruti Suzuki

Maruti Suzuki Alto K10

Maruti Suzuki Alto 800

Maruti Suzuki Celerio

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Maruti Suzuki Ciaz

Maruti Suzuki Ertiga

Maruti Suzuki Ritz

Maruti Suzuki Stingray

Maruti Suzuki WagonR

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Maruti Suzuki Swift

Hyundai Motors

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

Company, South Korea and is the second largest car manufacturer and the largest passenger

car exporter from India. HMIL presently markets 54 variants of passenger cars across

segments. The Santro in the B segment, the Eon, i10 and the Premium hatchback i20 in the

B+ segment, the Accent and the Verna in the C segment, the Sonata and elentra in the E

segment and the santafe in the SUV segment.

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

car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2012,

an increase of 49.6 percent over CY 2011. In the domestic market it clocked a growth of 22.4

percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports

accounting for 243,931 units in 2012.

HMIL’s manufacturing plant is located near Chennai which has advanced production quality

and testing capabilities in the country. Inorder to provide the Indian customer with global

technology, HMIL started its second plant in February 2008 which produces an additional

300,000 units per annum, raising HMIL's total production capacity to 600,000 units per

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annum. Apart from expansion of production capacity, HMIL currently has 260 strong dealer

network across India.

The production management processes at Hyundai Motor India are overlaid with an

organization-wide implementation of manufacturing best practices like Just-in-time inventory

management, Kaizen, TPM and TQM, that help us in making the world's best cars, right here

in India.

Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown into the

Hyundai-Kia Automotive Group which was ranked as the world’s fifth-largest automaker in

2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over

75,000 people worldwide, Hyundai vehicles are sold in 193 countries through some 6,000

dealerships and showrooms.

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

sustainable Environment Management . The company has a well defined framework in place

for developing products that reduce pollutant emissions and processes for preservation of

natural resources and energy along all the stages of the product lifecycle from production,

sales, use to disposal and has been awarded the ISO 14001 certification for all its three major

plants in Ulsan, Asan and Jeonju in S.Korea.

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Current Cars in Hyundai

Hyundai Sonata

Hyundai Verna Fluidic

Hyundai Eon

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Hyundai Grand i10

Hyundai i10

Hyundai i20 Active

Hyundai i20 Elite

Hyundai Santa Fe

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Hyundai Xcent

PRODUCT PROFILE

Maruti Suzuki SWIFT

In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as

Maruti Swift. In the Indian auto market Swift is available with seven variants four with petrol

and three with diesel engine option. The petrol version of Maruti Swift is powered by 1.2L K-

series engine. The 1.2L, K-series petrol engine present in Maruti Swift is highly fuel efficient

with the availability of 16 Valve light weight DOHC engine that reduces friction and

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improves durability and fuel economy to the best in town. Maruti Swift is endowed with 5

Speed Manual Transmission Gearbox. This gearbox is cable type gearshift which is of great

help at the time of shifting of gear. Maruti Swift’s powerful engine with the emission of BS

IV and is very fuel efficient and a very good performer that offers an impressive mileage of

14.4 kmpl in the city roads and 18.1 kmpl on the highways.

However, the diesel version of Maruti Swift is packed with 1.3L, DDiS engine with a

displacement of 1248cc. The 1.3L diesel engine is packed with turbocharger and intercooler

combination that offers efficient combustion and clear emissions. The diesel engine is

endowed with 5 step multi injection common rail system that offers better fuel combustion

and hereby gives good performance and makes the car economical to run. This compact

diesel engine is incredibly fuel efficient and offers a mileage of 16.9 kmpl in the city roads

and 19.6 kmpl on the highways.

Statistics

BODY TYPE

Body Type Hatchback

Number of Doors 5

ENGINE

Capacity 1197cc

Number of Cylinders 4

Number of Valves 16

Bore x Stroke 73.0mm x 71.5mm

Compression Ratio 10.1:1

Maximum Power 85ps @ 6,000rpm

Maximum Torque 113Nm @ 4,500rpm

Fuel Distribution Multipoint injection

Emissions BS IV

TRANSMISSION

Type Five-speed manual, with synchromesh in all gears, one

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reverse

Gear Ratios

1st 3.545 4th 0.914

2nd 1.904 5th 0.757

3rd 1.280 Reverse 3.272

DIMENSIONS

Overall Length 3,760mm

Overall Width 1,690mm

Overall Height 1,530mm

Wheelbase 2,390mm

Track Front Rear

1,470mm1,480mm

Ground Clearance 170mm

Minimum Turning radius 4.7 metres

Luggage Capacity 232 litres (with seatback raised)368 litres (with seatback folded)

CHASSIS

Steering Rack and pinion, power assisted

Brakes Front Rear

Ventilated discsDrums

Suspension Front Rear

MacPherson strut and coil springTorsion beam and coil spring

TYRES 165/80 R14 / 185/70 R14 (tubeless)

WEIGHTS

Kerb Weight 980 kgs [LXi] / 1,000 kgs [VXi] / 1,010 kgs [ZXi]

Gross Vehicle Weight 1,415 kgs

FUEL TANK CAPACITY 43 litres

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The Generation V Swift debuted at the Paris Auto Salon in September 2004. This generation

of the Swift marked a significant departure with the previous Cultus-based models, with

Suzuki re-designing the vehicle as less of a "low price alternative" subcompact and more of a

"sporty" subcompact. The Swift's design and driving characteristics focused on the European

market with its chassis refined through a road-testing program across Europe.

Indian Suzuki Swift

Indian Engineers were called to Japan to help Suzuki design this generation of Swift.

Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol

engines, the new Swift is Suzuki's new "global car", produced in Hungary, India, Japan,

Pakistan and by Chang'an in China.

In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or

1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive

version. The design of the new Swift was previewed on the Concept S and Concept S2

concept cars at auto shows, in the years leading up to its launch.

In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol

engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with an

automated manual gearbox or with four-wheel drive.

The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it

a "thoroughly impressive all-rounder". The Generation IV Swift has received a four stars out

of five rating in the EuroNCAP crash tests.

The Suzuki Swift gets a mid-life refresh, the hatchback was launched in 2011. The Swift has

been a popular hatchback ever since the first generation of the car was launched in India in

2004, it changed the segment forever. The design inside-out, interior quality, ride and

handling and peppy-and-efficient engines have made the Swift a favourite. The refreshed

Swift gets minor styling changes outside, new paint options, minute design changes inside,

added equipment and a new variant. The biggest change though is the fact that both the petrol

and diesel engines powering the Swift are now more economical than before, by around 10

per cent. The engines have also been re-tuned for better drivability.

The Swift face-lift gets minor styling changes on the outside. The car retains the peeled-back

headlamps, heavily raked front windscreen, floating roof, short rear and the sculpted body. At

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the front changes include a new honeycomb grille along with a new bumper with a larger air-

dam. Also added are silver L-shaped insert beside the front fog lamps which give the illusion

that the car has LED daytime running lamps. The front door handles on the top-end variants

get request sensors for the key-less entry system, the ORVMs covers are integrated with side

indicators. The top-end variants get new alloy-wheels while the full-wheel covers for the

other variants have been redesigned too. Apart from that the design remains the same as that

of the earlier model. The rear is compact, features tail-lamps which mirror the front, a short

hatch and a sculpted bumper.

Inside, the Swift gets the same interiors as before. The interiors still get the all-black theme

with shiny-black and matte-silver inserts. The three-spoke steering wheel is good to look at

and good to hold, higher variants get steering mounted controls. The new Swift also gets

steering-column mounted call controls. Top-end variants also get key-less entry-and-go,

which adds a start/stop button along with request sensors on the front door handles. The

ORVMs are now electrically foldable too, they were electrically adjustable earlier. The

multimedia system now gets Bluetooth connectivity, the design of the interface remains the

same. The A/C controls also remain the same as before. Rear seats are now foldable in a

60:40 split, which adds to the practicality of the car.

The Maruti Swift face-lift comes with a choice of either a 1.2 litre naturally aspirated four

cylinder petrol engine or a 1.3 litre turbocharged and intercooled four cylinder diesel engine.

Both the engines are mated to a 5-speed manual-transmission. The engines are fuel efficient

units and offer adequate performance as well.

The Maruti Suzuki Swift was always a popular premium hatchback, these additions make it

even more appealing.

MARKETING STRATEGIES

ObjectivesThe main objective of Maruti Suzuki Swift is to conquer the market of hatchback car

segments. Launched in 2005, Maruti Suzuki aimed to make Swift the leader of top quality

hatchback cars, and since then no car of its competitors has been able to tackle Swift’s sales.

The MS Swift’s share is more than 15% in the market, and is currently the best selling Car of

its segment in India.

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Target MarketsSwift targets the domestic market first and it will not face any capacity constraint here. A

sizeable number of cars have been manufactured at Maruti plant in Gurgaon and deliveries

will commenced by the first week of June 2005," Arvind Saxena, chief general manager,

sales, MSL said. "Over 85 per cent of the car has been indigenized. Swift is based on the

latest European design and styling, built with Japanese quality and precision, utilizing Indian

engineering capability. The car has an universal appeal," he added. At present, MSL has an

installed capacity of 3,50,000 units per annum and the company manufacturers around

6,00,000 vehicles per annum on a two-shift basis. However, the company officials did not

divulge the exact number of Swift cars to be manufactured in India. According to industry

estimates, around 50,000 Swifts are expected to be sold in India in the first year. Currently,

being launched across the globe, Swift has received rave reviews internationally for its path

breaking looks and styling and superior safety features. It has become one of the top 20 best-

selling models in Japan since its launch there in November 2004.

PositioningUsing product differentiation, Maruti Suzuki Swift will be placed as the most comfortable,

convenient, value added hatchback model for above target market used. The marketing

strategy will be focused on promoting the car as the best hatchback car model for the next

generation.

Strategies ProductThe Maruti Suzuki Swift is fully loaded and comes with a warranty of up to 3 years; it can

also be extended up to 5 years maximum. Also a higher model, Maruti Swift DZire has been

introduced in 2010, as a replacement for Maruti Esteem, which has completed its run.

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Price:Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki

Swift car. After launching cars for the masses since so many years, India’s largest automobile

manufacturer is now targeting the premium segment with their latest model from the Suzuki’s

stable. The analysts predict the pricing of this premium hatchback to start from Rs. 4 lakh.

This price range would practically rip apart Hyundai’s offering in i20, which is priced at a much

higher tag of Rs. 4.5 lakh. Both the companies are known for their value based offerings and

Maruti with their extensive service network and brand reputation for making reliable cars should

get the customer’s nod over their competition. The official pricing however is still not out.

However, the company is said to be studying the prospects of launching the base model at the 4-

lakh price tag. There is another advantage in doing so considering in the capital city of Delhi NCR

road tax on the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a price higher than 4

lakh have to pay a 4% road tax.

Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. And if

they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai

Getz, they would quite likely force the competition to rethink their strategy.

Distribution• The Stockiest will represent 4 to 5 districts in a State.

• The Dealer will represent a district or main City.

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

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

Marketing CommunicationsBy integrating all messages in all media we will reinforce the brand name & main points of

product differentiation. Research about media consumption, pattern will help our advertising

agency to choose appropriate media and timing to reach prospects before & during the

product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain

brand awareness and communicate various differentiation messages. The agency will also co-

ordinate public relation efforts to build Maruti Suzuki brand & support the differentiation

message. To attract market attention & encourage purchasing, we will offer a limited time,

registration & insurance. To attract, retain & motivate channel partners for a push strategy,

we will use trade sales promotions and personal selling to channel partner.

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Advertisements

Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts to the

people about its products by marketing through advertisement in television, radio, newspaper,

etc.

Through radios they try to promote their product by organizing quiz contests and the person

who wins are offered special discounts, gift vouchers, coupons, etc.

Through television they promote their vehicle by showing the utility value, its comfort level.

After Sales Service

“Kya yahan Maruti Service Station hai” Availability of service stations even in the

remotest place in the country.

Display

If you visit any of the Maruti Dealers showroom what you will notice is one thing very

similar, that is the display. They display only 2-3 cars in the showroom. Well this is the

strategy to make people concentrate on only few choices otherwise they might get distract

and get confused. Here Maruti wins one customer.

Tie up with many banks

To promote its bottom line growth, Maruti launched Maruti Finance in Jan 02.

Prior to the start of this service Maruti had started two joint ventures – Citicorp Maruti and

Maruti countrywide with Citi Group and GE Countrywide respectively to assist its client in

securing loan.

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Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI Ltd, Kotak Mahindra

Bank, Standard Chartered Bank etc.

Exchange offers

Maruti has also placed its step and progress by marketing through exchange offers. In this it

makes possible to leave and get it replaced for a new one with barely some amount. This is

one of the greatest ways to attract more and more customers and also makes possible to

increase sales.

SBI Maruti Car Loans

The country’s largest bank and the largest car maker have joined hands to make affordable

car finance available to more and more people across the country. The mega alliance makes

car loans available at lower interest rates to a wider section of people, with transparent terms

and conditions.

The unbeatable advantages of SBI Maruti car loans:-

-Two market leaders in their respective industries with trusted brand names.

-Low interest rates

-No processing fees or hidden costs to ensure transparency.

-Car loans available for diverse categories of customers including govt. employees and

agriculturist.

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TIMELINE OF GENERATIONS

First generation (2000–2004)

The first generation Swift was introduced in 2000 as a replacement for the Suzuki Cultus.

Outside of Japan, the Suzuki Ignis name was widely used. The Ignis was originally

manufactured as a five-door hatchback, powered by a new generation of Suzuki straight-four

gasoline engines, the M family. Displacement ranged from 1.3 to 1.5 L, and the standard

transmission was the usual five-speed manual, with

an optional four-speed automatic gearbox. The

vehicle is available with either front or four-wheel

drive, although the 4WD/auto combination was

limited to the Japanese and Australian markets.

A shorter three-door version, with redesigned bumpers, was introduced in 2003, named Swift

Sport in Japan and Ignis Sport in Europe. The Ignis Sport used the same 1.5 L as the regular

Ignis, but with power increased. The Swift/Ignis Sport went out of production in 2005.

In 2001, General Motors introduced the Chevrolet Cruze—a crossover SUV based on the

Swift, retaining the original car's basic dimensions and power plants. The Cruze was restyled,

adopting a crossover look between a tall hatchback and a sport utility vehicle, and the three-

door body was dropped. The "Chevrolet Cruze" commercial designation was used in most of

south Asia, while in Australia the car was sold by as the Holden Cruze from 2002 to 2006.

31

Maruti Swift in Production


Suzuki in Europe introduced the Cruze as an update of the Ignis in 2003, although extended

by roughly 150 millimetres (5.9 in) in length, to improve interior room and luggage space.

This version was manufactured by Suzuki's Hungarian Magyar Suzuki plant specifically for

the European market.

Also in Europe, due to an agreement with Subaru, the car was also sold as the Subaru

Justy (4WD only) from 2003, as happened previously with the previous generation Cultus-

based Swift.

The Cruze-based update was never sold in Japan as a Suzuki, only as a Chevrolet. Europe

was the only market to receive the updated car as a Suzuki.

Second generation (2004–2010)

The second generation Swift debuted at the Paris Auto Salon in September 2004. This

generation of the Swift marked a significant departure with the previous Cultus-based

models, with Suzuki re-designing the vehicle as less of a "low price alternative" subcompact

and more of a "sporty" subcompact.[2] The Swift's design and driving characteristics focused

on the European market with its chassis refined through a road-testing program across

Europe.[3]

Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol

engines, the new Swift is Suzuki's new "global car", produced

in Hungary, India, Japan, Pakistan and by Chang'an in China.

In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or

1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive

version. The design of the new Swift was previewed on the Concept S and Concept S2

concept cars at auto shows, in the years leading up to its launch.

32


In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol

engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with

an automated manual gearbox or with four-wheel drive.

The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it

a "thoroughly impressive all-rounder". The second generation Swift has received four stars

out of five rating in the Euro NCAP crash tests.[4] It also was awarded 2006Semperit Irish Car

of the Year in Ireland.

Since its global launch in 2005,

which was kicked off with a

marketing campaign fronted by

the footballer Cristiano

Ronaldo in many European

countries, the Swift has

recorded above forecast sales in

most markets. In Japan, sales

figures have been twice the

forecast and in many European

markets the model has been a

runaway success. In Denmark, the Gen IV Swift has been consistently in Top 3 for more than

2 years and was the car with the highest sales figures in 2006. In India, rapid sales of the new

Swift model contributed to the 64% rise in Q1 profits for Maruti Suzuki. The Swift will be

reintroduced to the U.S. market in 2010 to replace the Suzuki Reno

Third generation (2011-till

present)

A new model for Maruti Suzuki Swift

is under development in India, and is

33

Maruti's team of 25 engineers who went to Japan to

co-develop the Swift

A look of new Maruti Suzuki Swift

awaiting its launch in 2011.


going through various tests, It is planned to be launched in India by the first phase of 2011.

This model is better than the older one is various prospects. he changes on the exterior are

quite subtle with no major changes reflecting from the spy shots. Interiors are under cover

and customers can keep guessing until the official pictures are revealed. However, an

increased wheelbase promises more space in the interiors. The new Maruti Suzuki

Swift looks to be powered by the latest K12 1.2L engine that powers current model

and Maruti Ritz. The diesel variant can be sourced from Fiat which will be the 1.3L Multijet

diesel engine, according to disclosed details right now. The new Swift has been codenamed

as YP8 which is being developed to compete in the Indian market with new entrants

like Chevrolet Beat, Ford Figo, Volkswagen Polo, Nissan Micra and the upcoming Toyota

Etios Liva and Honda Brio.

SWOT ANALYSIS

StrengthsBrand Image.

Reliable and cheap.

Established brand in Indian market.

Great service and nationwide penetration.

Experience in Indian market.

34


Very old player in Indian market.

Established distribution & after sales networks.

Weaknesses Diseconomies to scale

No online presence

Not diversified

Opportunities Acquisitions

Innovation

Online Product and services expansion

Takeovers

Targeting Higher Middle Class requirements

Threats Competition

Cheaper technology

External changes (government, politics, taxes, etc)

Lower cost competitors or imports

Price wars

Product substitution.

35


Hyundai i-20

The Hyundai i20 was designed in a Hyundai Designing Centre in Germany by a BMW

designer: Thomas Buerkle. The Hyundai i20 is a supermini/subcompact car, made its debut

at the Paris Motor Show in October 2008 and went on sale in December 2008 in India to fit

between the i10 and i30. It is a Front wheel drive car. The car is mostly European because of

its design and designer. Three and five door versions are available (Both have different sleek

window shapes). The i20 replaces the Getz in most markets but in the UK and India, the Getz

will still be available for the time being. The i20 is assembled in Turkey for the European

market[1] and in India for sale in Asia and Oceania. The i20 has recently replaced the Getz in

Australia.

The i20 is not sold in Korea, as the similar, Korea-built (Which is also known as the Hyundai

Getz in the UK) sold there.

In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine

developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 N·m (84 lb·ft) of peak torque

at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of power at 5500

rpm and 139 N·m (103 lb·ft) at 4200 rpm i20 CRDi the diesel i20 comes with a powerful oil burner

generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 N·m (165 lb·ft) of peak

torque between 1750–2750 rpm.

Statistics

Overview

Model i20

Body Type Hatchback

36

http://en.wikipedia.org/wiki/Hyundai_i20#cite_note-0


Number Of Doors 5

Seating Capacity 5

Fuel Capacity 45

Dimensions:

Length 3940 mm

Width 1710 mm

Height 1505 mm

Wheelbase 2525 mm

Ground Clearance N/A

Minimum Turning Radius N/A

Weight:

Kerb Weight 1066 kg

Engine:

Type 1.4-L diesel 1.2L petrol

Number Of Cylinders 4

Displacement N/A

Transmission 5 Speed, Manual

Max. Power 90 bhp – Diesel 58 kW - petrol

Max. Torque N/A

Suspension:

Front Suspension Mc Pherson Strut with Coil Spring

Rear Suspension Coupled Torsion Beam Axle with Coil Spring

Brake:

Front Disc

Rear Drum

37


Steering Type Rack & Pinion, Power Assisted

Tyre Size 175/70 R14

MARKETING STRATEGIES

Advertisements

Hyundai had used Bollywood star Sharukh Khan as Brand Ambassador for promoting their

car. Through this they tried to attract the customers.

To promote their product they organized quiz contests on radio and the person who wins was

offered special discounts, gift vouchers, coupons, etc.

They also advertise in Newspapers. In this companies advertise about the car in various

newspapers and they give detail explanation about the feature of the cars, keeping customer’s

requirement. They also provide various dealers addresses and contact numbers for reference.

Free checkups

38


Hyundai arranges free checkups from time to time in which they check for any problem and

advice to visit the nearest service center for servicing. This helps in maintaining good

relationship with customers and tries to keep good image in market.

Exchange offers

As Hyundai deals in pre-owned cars also. They offer exchange offers to customers. And by

paying adjusted amount customer can get brand new car in exchange of old once. Exchange

offer makes customer happy as they don’t have to pay full amount also, they get new car also

and their old car gets replaced also with new one.

Cold callingsIn this type of strategies old customers are given a relationship call just to know some other

references. This gives a boost to sales and customers also feel a sense of involvement.

Hyundai gets maximum sale through such type of cold callings only.

39


Events at Corporate Office and Banks

Hyundai tries to attract customers by conducting camps, events at corporate offices and bank

as most of the customers are of middle-age group and corporate offices are good source for

company to attract such customers.

Display

Hyundai keeps attractive display so that maximum number of people gets noticed. And they

even keep their own accessories related to cars at special accessories counter. For attractive

display they decorate their showroom as well as all the cars which are displayed.

Objectives

First year Objectives: We are aiming for 5% market share of the Indian market through unit

sale volume of 100000.Second year Objectives: We are aiming for 10% market share of the

Indian market. An important objective will be to establish a well-regarded brand name linked

to a meaningful positioning. We will have to invest heavily in marketing to create a

memorable and distinctive brand image projecting innovation, quality and value. We also

must measure awareness and response so we can adjust our marketing efforts if necessary.

Target Markets

Hyundai i20's marketing strategy is differentiated marketing. Our primary consumer target is

middle to upper income professionals who need true value for their money and comfortable

ride in city conditions. Our secondary consumer target is college students who need style and

speed. Our primary business target is mid sized to large sized corporates that want to help

their managers and employees by providing them a car for ease of transport. Our secondary

40


business target is entrepreneurs and small business owners who want to provide discounts to

managers buying a new car. Each of the four marketing strategies conveys Hyundai i20's

differentiation to the target marketing segments identified above.

Positioning

Using product differentiation we are positioning the Hyundai i20 as the most versatile,

convenient, value added car model for above target market used. The marketing strategy will

be focused on promoting the car as economic car for the next generation.

Strategies Product

Hyundai i20 is fully loaded and will be sold with 3 year warranty. We will also introduce a

CNG/LPG version of Hyundai i20 in the near future. Also the high end model has an option

of GPS system.

Price

Hyundai i20's base model is at ex-showroom price of 4.5 lakhs. This price reflects a strategy

of

1) Attracting desirable channel partners

2) Taking market share from Maruti.

Distribution

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

• The Dealer will represent a district or main City.

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

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

Marketing Communications

41


By integrating all messages in all media we will reinforce the brand name & main points of

product differentiation. Research about media consumption, pattern will help our advertising

agency to choose appropriate media and timing to reach prospects before & during the

product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain

brand awareness and communicate various differentiation messages. The agencies will also

co-ordinate public relation efforts to build Hyundai brand & support the differentiation

message. To attract market attention & encourage purchasing, we will offer a limited time,

registration & insurance. To attract, retain & motivate channel partners for a push strategy,

we will use trade sales promotions and personal selling to channel partner.

Various Marketing Strategies enables a firm to expand business activities for market

reputation, to satisfy human wants , to lead to specialization and efficient performance of

production function climaxing in economic stability.

After liberalization automobile Industry is growing at very high rate and many new

companies have also entered into market. With offering variety of cars in all segments for

everyone. So it is important to know which company is providing us good quality cars at fair

prices and providing better after sales services. And how they are trying to reach customers.

The most obvious objective marketers have for promotional activities is to convince

customers to make a decision that benefits the marketer (of course the marketer believes the

decision will also benefit the customer). For most for-profit marketers this means getting

customers to buy an organization’s product and, in most cases, to remain a loyal long-term

customer.

TIMELINE OF GENERATIONS

First generation (2008–2011)

In Indian market, Hyundai i20 comes with

Hyundai i20 is powered by an 1.2L

kappa engine developing 80 PS (59 kW;

79 hp) of max power at 5200 rpm and

114 N·m (84 lb·ft) of peak torque at

4000rpm.i20 also gets 1.4L gamma

gasoline generates 100 PS (74 kW; 99 hp)

42

Hyundai i20 in

production


of power at 5500 rpm and 139 N·m (103 lb·ft) at 4200 rpm i20 CRDi the diesel i20 comes with a

powerful oil burner generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 N·m

(165 lb·ft) of peak torque between 1750–2750 rpm.

A picture of the 1 st generation of Hyundai i20 produced in India

Second gemeration (2012-till present)A slightly upgraded version of the i20, called the i-Gen i20, went on sale in India in March 2012

onward with tweaked Headlamp, new Front Grill, Tail-lamp and Fog Lamps. It follows the Fluidic

design philosophy with slightly re-tuned engines

The i20 will debut in Europe with a total of seven engine options, all with four

cylinders. Three are petrol, including the recently designed 1248 cc dohc 16 valve

"Kappa" engine, while the rest are diesel engines. Two of the diesel engines are 1396

cc units, one with 75 PS (55 kW; 74 hp) and 220 N·m (160 lb·ft) and the other a

90 PS (66 kW; 89 hp ) and 220 N·m (160 lb·ft) high power unit They are joined by two

1582 cc engines having the same dohc and 16-valve top end architecture but

delivering either 115 PS (85 kW; 113 hp) and 156 N·m (115 lb·ft) of torque or 128 PS

(94 kW; 126 hp) and 157 N·m (116 lb·ft) of torque.

Hyundai claims that 115 PS (85 kW; 113 hp) diesel unit can return a class leading

115g/km of CO2 while sipping just one litre of HSD to go 23.25 km/L (65.7 mpg-imp;

43


54.7 mpg-US) (4.3L/100 km) in the European combined driving cycle. All diesel engines

and 1.2 and 1.4 petrol engines come mated to five-speed manual transmission, there is

an option of a four-speed automatic for some 1.4 petrol engined models, the 1.6 is

mated to a six-speed manual transmission.

Hyundai launched the new i-Gen i20 on March 28th 2012. The new car which was designed

on the lines of Hyundai’s new ‘Fluidic’ design language replaced the first generation i20

which was being sold in India. The exterior dimensions of the car are similar to the outgoing

model. The fluidic family design from Hyundai has given the car a fresh new look, doing

away with the more dated design of the old version. With the i20, most of the Hyundai cars

available in India now have the corporate fluidic look.The new i20 is loaded as the top-of-

the-line Asta (O) which comes packed with all the creature comforts that a modern petrol-

head needs. A digital read out on the dashboard and in the instrument cluster, a fully-

automatic climate control system and in-car-entertainment with USB, i-pod connectivity.The

new i20’s best-in-class wheelbase allows for an airy cabin with ample space for the average

urban family.

When it comes to engines, the i20 has two engine options, the petrol is a 1.2 litre Kappa

petrol engine under its bonnet. The in-line 4-cylinder engine with Dual VTVT puts out 82

bhp of maximum power, for which you need to rev the engine to 6000 rpm while 113 Nm of

torque tops out at 4000 rpm. Being a petrol engine, you do need to rev it up as it lacks low-

end grunt. That said, work the smooth shifting 5-speed manual gearbox as well as your right

foot and you will be greeted with a very refined four-pot orchestra emanating of course from

the engine bay. The other petrol is the 1.4litre Gamma with 4-speed automatic transmission

which gives 100 bhp.

The i-Gen i20 with its 1200 cc petrol engine would do 16.1 kmpl as per ARAI specifications,

although in real world condition this is expected to drop by at least 5 kmpl. The car should

return a mileage of 11 kmpl depending upon individual driving styles. The diesel with 1.4l

CRDI gives a mileag of 20 kmpl combined.As far as handling is concerned, the i-Gen i20

isn’t the best car to throw around corners at a high rate of speed. The i20 prices start at Rs 4.7

lakh for base petrol to Rs 7.7 lakh for top end petrol. The diesel variant start at rs 6 lakh to Rs

7 lakh for the top diesel. The i20 is an spacious and refined small car.

44


RESEARCH DESIGN

Statement of the problem

Consumer choice process is a complex phenomenon. Making a decision to buy a product or

services involves many processes. The literature on consume behavior studies reveals that for

the selection of durable products, especially passenger cars, the customer has to spend much

time to evaluate and choose the desired one based on their need and economic condition. The

marketing strategies followed by the manufacturer and marketer as well as pre-conceived

idea of the buyer also play a vital role in selection of a particular brand and to get more

satisfied. Only a limited number of attempts have been made to study the impact of brand

preference factors on customer behavior. Based on these basic questions, the researcher has

developed an interest to do a comparative analysis between the two mid-size segment cars in

India viz.., Maruti Swift & Hyundai i-20

Objectives of the Study

45


1. To understand the performance of Swift and i20 respectively.

2. To identify the perception of customers regarding these cars.

3. To determine the factors the choice of customers regarding cars.

4. To analyze the level of satisfaction of respective car holders.

Scope of the study

1. Examines and identifies key information and issues about 'MARUTI UDYOG LTD' &

‘HYUNDAI MOTORS’ for business intelligence requirements

2. Study and presents the company's strengths, weaknesses, opportunities (growth

potential) and threats (competition). Strategic and operational business info is accurately

stated.

3. The profile also covers info on business processes, company history, major products

and services, prospects, key challengers.

4. My project was based on the Comparative Study of Swift vs. i20 and data was taken

in Mysore city only.

Methodology of the Study

The study is based prominently on primary data with a supplementary secondary data.

The primary data is collected from various sources like Questionnaire and Interview Method. The

targets for the primary data were the customers using the various models of passenger cars. The

secondary data was collected from company’s report, company’s broachers & websites have been

collected.

Sample Size

The size of the sample for study was 100 respondents from Mysore city of Karnataka. They were

selected using convenient sampling technique. As this is a comparative study between the two cars

100 respondents were equally divided for the two cars so as to increase the accuracy.

Tools of Analysis

46


The statistical tool used for the purpose of the analysis of this study is simple percentage

technique and ranking techniques. After the collection of data through the questionnaire,

editing was done carefully. Based on the responses of the samples, tables were prepared. The

data collected were analyzed and interpreted with the help of tables & figures.

Sampling Technique

Convenience Sampling Technique is used where it is both descriptive and Exploratory in nature

Limitations of the Study

1. Research work was carried out in Mysore only the finding may not be

applicable to the other parts of the country because of social and cultural

differences.

2. The sample was collected using connivance-sampling techniques. As such result it may not

give an exact representation of the population, it is also very small which represent my

research on consumer behavior.

3. Shortage of time is also reason for incomprehensiveness.

4. The views of the people are biased therefore it doesn’t reflect true picture.

5. I had only found the upper-middle class family to fill up the questionnaire, but generally,

an average middle class family was required for the study.

47


REVIEW OF LITERATURE

Satya Sundaram (2008), analyzed how the competition makes the automobile manufacturer

to launch at least one new model or a variant of the model every year. This survey also

pointed out that diesel cars are becoming popular in India and the announcement of

reductions in excise duties by the government has helped to some extent to boost the demand.

Clement Sudhakar and Venkatapathy (2009), studied the influence of peer group in the

purchase of car with reference to Coimbatore District. It was also found that the influence of

friends is higher for the purchase of small sized and midsized cars.

Brown et al (2010), analyzed the consumers’ attitude towards European, Japanese and the

US cars. The country–of–origin plays a significant role in the consumers‟ behavior. The

brand name, lower price and distributor’s reputation completely have a significant impact on

the sale of passengers’ car.

48


Manish Kumar Srivastava, A.K. Tiwari [2011], studies the consumer behavior for A3

segment vehicles such as Honda City and SX4 in a particular region Jaipur. Data collected

from 100 respondents 50 each from Honda City and Maruti SX4. Respondents were

considered from various backgrounds like Gender, Occupation, Income class. Also customer

purchase parameters considered for study are Price, Safety, Comfort, Power & Pickup,

Mileage, Max Speed, Styling, After Sales Service, Brand Name and Spare Parts Cost. Based

on above parameters and analysis made in this it revealed that, while purchasing A3 segment

car Customer give much importance to Safty, Brand Name and seating and driving comfort.

Also word of mouth publicity and advertisements in car magazines are more effective

communication medium for promotion of Cars.

K.Vidyavathi [2014], the study throws light on various aspects that the manufactures should

concentrate on to attract the prospective buyers. The demand for the small Automobile

segment is increasing because of the growing number of nuclear families as well as parking

problems. Hence the manufactures should find out the needs, wants, tastes and preferences of

consumers in order to design the products. Also fuel economy and driving comfort are the

most important parameters followed by availability of spares and their price.

Samin Rezvani, Goodarz Javadian Dehkordi, Muhammad Sabbir Rahman [2014], this

paper reviews the country of origin and different variables that influence consumer purchase

intention also highlight the relationship of variables and customer purchase intention. Study

demonstrate that people care about which country products come from and where they are

made and consider these factors when evaluating the quality of product. Stereotypes of

country and the preferences of customers, influence the purpose intention. Political system,

culture and the economy of the country can be a cause of sensitivity to people. There are

many factors that have an impact on consumer purchase intention. Research and

methodologies have shown that even when consumers can evaluate all the intrinsic product

characteristics by expressing the product, the effect of extrinsic cues has more influence on

consumer product evaluation. Country of origin is one of the extrinsic cues; in addition, there

is no doubt that country of origin has considerable influence on the purchase intention

process.

However, the present study differs from the above, in that the buyer behavior in Mysore is

sought to be analyzed here. The scope and the area of the study are unique in nature.

49


THEORATICAL BACKGROUND

The term customer refers to a person who buys goods or service for his personal or household

use and not for resale. Attitude is defined as a mental, emotional or rational predisposition

with regard to a fact, state, person or an object.

THE IMPORTANCE OF CUSTOMER CARE

Customer care is an important of successful selling, because keeping an existing customer

contended is generally much easier, takes less time and involves less expense than finding

new buyers. The reason for this are that it takes less time to find new prospective customers,

and having found them the sales person needs to establish credibility before making a sale with

existing customers this has already been accomplished. Even though many businessmen and

women readily accept this idea, it is still remarkable how many companies gain a reputation for

bad service.

50


The critical feature is that customers must perceive that they are getting good service.

Companies can only know if they are succeeding by auditing their customer responses. The

starting point is to identify precisely the consumer requirements, then to attempt to measure how

effectively these requirements are being satisfied. Work then needs to be undertaken to improve

the degree of satisfaction.

Majority of the people will agree that Customer Service is one of the most important parts of

your company's overall strategy to conducting business. Without customers you really don't

have a business. If this is the case, why is it mostly everyone as consumers can easily

mention examples of poor customer service in their daily lives? Every company either has or

thinks it has good customer service. However, if certain steps are not taken to ensure this, the

reality of their situation is often far worse than their current perceptions.

In any successful business or organization, the commitment to customer service always

begins at the top, the company's leaders must buy into the fact that they not only need to

meet their customer's expectations, and they must strive to exceed them. They must develop

a company culture that understands, embraces and executes this concept.

In today's world, business competition is tougher than ever. If you can't provide goods or

services when somebody wants or needs them, there are often four or five other companies

immediately ready to fill this void. You only get one chance to make a good first impression.

If the company's leaders do not accept this fact, or are not willing to provide the necessary

resources to meet their customer's needs, they will soon find themselves scrambling for

business.

Proper training is one way to develop a company culture that embraces excellent customer

service. Employees must understand implicitly what is expected of them when interacting

with customers. Is there an established, uniform way to answer the phone? Are there is a set

of procedures in place for instances when a customer has a question or problem? Is there an

established chain of command to make sure that issues are handled in a timely fashion?

And most importantly is everyone trained to carry out these company procedures? How you

handle the problem is far more important than the problem itself. A customer must always be

made to feel as though their best interests are being given serious consideration, even when

51


you can't give in to their demands. It is far better to say 'no' with a smile, than 'yes' with an

attitude.

Customer feedback is an excellent way to track and measure your level of service. You

should not only benchmark your company against your competition, but also against the

goals you set for yourself. Once again, you must remember you are trying to not only meet,

but exceed your customer's expectations. Written surveys are one way to gage customer

satisfaction. This can be useful to obtain feedback on a wide variety of company functions.

Always allow for written comments, as these usually will help shed light on problem areas.

Management's interaction with customers is an excellent way to not only measure overall

efforts, but to also show the level of commitment the company has towards their needs.

A manager who does not spend anytime with customers is likely to be detached and unaware

of what their employees do and what their customers want. You always feel better if you

have the chance to talk to someone who actually sets policy, not just someone paid to carry it

out.

In today's world of bigger, faster, better you need to be the company that gets it right the first

time, and if you don't, you must quickly rectify your mistakes. If you consistently make this

part of how you conduct business, your customer's loyalty will continue to grow. The surest

way to continued success and future growth is to not only meet your customer’s expectations,

but to exceed them at every possible turn.

Good customer service is the foundation of any business. It provides a platform for continued

growth and helps to build your businesses reputation. You can offer promotions and slash

prices to bring in as many new customers as you want, but unless you can get some of those

customers to come back, your business won't be profitable for long.

Good customer service is all about making them happy. Happy enough to pass positive

feedback about your business to others, who may then try the product or service themselves,

in turn they become repeat customers.

DEALING WITH DIS-SATISFIED CUSTOMERS

The desire to feel important is a fundamental human craving. It is the desire to that

motivates the children of low earning parents to become millionaires. Most people accept

the fact that they are very important and get on with living their lives quietly until, i.e. they buy

52


something a product or a service that is sub-standard. Then all of sudden, they feel that they

have the right to be taken seriously. In short, if the product suits with the need of the

customer, it leads to satisfaction, whereas if the product is not in line with the need of

the customer, they eventually get dissatisfied.

The company that fails to acknowledge this strong feeling could head for a lot of trouble.

Consequently some companies channel all customer complaints to the chairman, who deals

with them personally.

A compassionate approach to the compliant with generous compensation for the

inconvenience involved and a letter from the company's chairman is a very efficient way

of demonstrating how seriously the company responds to the customer who had the

misfortune to be badly served by its products.

Nobody likes disappointed customers, but if your business handles complaints well you could

find an angry one becomes a loyal advocate of your business. Alex Tomlin explains how No

matter how great your product or service is, you cannot please all of the people all of the

time. Occasionally, customers are going to experience problems. So, dealing with complaints,

and even encouraging them, should be a key part of any growing business’ strategy.

More than a third of SMEs do not have a formal procedure in place for dealing with customer

complaints, according to the UK Business Barometer from the University of Nottingham

Institute of Enterprise and Innovation. It suggests that nine out of ten dissatisfied customers

will not do business again with the source of their annoyance, while 80 per cent will vent

their anger to at least ten people and 20 per cent sound off to at least 20 others. This could all

add up to a serious loss of business and damage to brand and reputation.

Furthermore, with only around four per cent of disgruntled consumers actually making a

complaint, it is worthwhile encouraging it. After all, the more feedback you receive the more

you can tailor your service to better satisfy customers. And when a customer complains they

give you the chance to redeem yourself and retain them. Curiously, a well-handled complaint

can create more customer loyalty than a perfectly-delivered initial service. They may even

tell their friends how great you are!

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A clear complaints path having a formal procedure does not mean you need a complaints

department. If a medium-sized business is getting enough complaints to warrant that, it needs

to have a good, hard look at what it’s doing wrong!

It’s important to create a culture of dealing with complaints. ‘Consistency is key when

dealing with unhappy customers,’ explains Mike Petroot of the Chartered Institute of

Management.

There must be a clear path to follow once a complaint has been received and everyone must

know what that is.’ One major bugbear of complainants is being shoved from pillar to post,

speaking to several people before any progress is made. It’s key that one person takes

responsibility early on in the process and sees it through to the conclusion, communicating

with the customer regularly, even if it’s not actually their department.

‘As in most aspects of customer relationship, record-keeping is vital, not just as means of

knowing what is going on, but also to measure how well the procedure works in terms of

satisfying complaints,’ says Petroot. In this way, you can analyze what methods work most

effectively.

HANDLING CUSTOMER COMPLAINTS

The first thing to appreciate is that every business from time to time has dissatisfied

customers who complain. The reason may be misunderstanding, an accident or the customer's

expectation not being fulfilled. As such it needs to be anticipated, procedures must be

established and staff trained in the principles and techniques of damage limitation.

Dealing with the complaints immediately

Postponing any action is adding insult to any inquiry. The more efficiently the complaint is

received and resolved the more difficult it is for the customer to escalate the problem into a

major controversy.

Admit mistake when they arise

54


It is an interesting fact of human nature that when the offender, or his representative

admits the fault, apologize and offer to put the matter right. It is very difficult for the

injured party to continue to feel aggrieved.

Listen to complaints

Listen patiently with an open mind until the customer has finished his criticisms.

When the anger has passed encourage him express his views as to what has gone wrong. Avoid arguments with the customer When a dissatisfied customer is telling about the grievances, under no

circumstances should attempt to argue or dispute the matter even if the customer is wrong by argument the business lose customer.

When a customer has taken the trouble to complain investigate the matter quickly and

efficiently and report back to the customer with a proposal to rectify the complaint.

Make the customer aware how important business is for customer.

CUSTOMER SATISFACTION

Customer satisfaction is what makes a consumer repeat the purchase of certain products and

service. It is based on the ability of the selling organization in meeting the customer needs

precisely. The absence of complaints is not a sufficient indicator that this is being achieved. The

time and effort involves in complaining is a deterrent to making these view known.

MEASURING CUSTOMER SATISFACTION:

Customer satisfaction survey should play a crucial role in enabling an organization to

change and develop with its customer. Only by conducting systematic market research a

company will be able to evaluate how it is perceived by its customers and a lapse with

customers, had to do necessary changes which are required to meet the requirements more

effectively.

Customer satisfaction survey must be conducted regularly to measure customer satisfaction and a

number of key reasons:

Customer requirement change. Improvement in the service must be measured over time.

New competitors enter the market. Organizations need to retain existing customers while

targeting non-customers. Measuring customer satisfaction provides an indication of how

successful the organization is at providing products and/or services to the marketplace.

55


Customer satisfaction is an abstract concept and the actual manifestation of the state of

satisfaction will vary from person to person to their products or services. The state of

satisfaction depends on a number of both psychological and physical variables which

correlate with satisfaction behaviors such as return and recommend rate. The level of

satisfaction can also vary depending on other factors the customer, such as other products

against which the customer can compare the organization's products.

Work done by Parasuraman, Zenithal and Berry (Leonard L) between 1985 and 1988

delivered SERVQUAL which provides the basis for the measurement of customer

satisfaction with a service by using the gap between the customer's expectation of

performance and their perceived experience of performance.

This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature.

Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by

Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into

a single measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements using

a Likert Technique or scale.

The customer is asked to evaluate each statement in terms of their perception and expectation

of performance of the service being measured. Arguably, consumers are less complex than

some of these surveys tend to portend.

They are basically in two simple states; satisfied or not satisfied. On or off, just like a switch.

A business can measure its customer satisfaction index by relating the aggregates of satisfied

customers versus dissatisfied customers.

Furthermore, with only around four per cent of disgruntled consumers actually making a

complaint, it is worthwhile encouraging it. After all, the more feedback you receive the more

you can tailor your service to better satisfy customers. And when a customer complains they

give you the chance to redeem yourself and retain them. Curiously, a well-handled complaint

can create more customer loyalty than a perfectly-delivered initial service. They may even

tell their friends how great you are!

A clear complaints path having a formal procedure does not mean you need a complaints

department. If a medium-sized business is getting enough complaints to warrant that, it needs

to have a good, hard look at what it’s doing wrong!

56


Show your customers you value them

A customer satisfaction survey demonstrates the value you place on your customer’s

experience with your company. Although many businesses are quick to placate customers

who voice complaints, a business that pre-emptively strives to satisfy the customer makes an

even better impression. This consideration of the customer’s opinions can foster loyalty in the

long run and translate to repeat sales.

Gather customer demographics

Customer satisfaction surveys can be an excellent opportunity to form a clear concept of your

demographic. You can find out your average customer’s age, gender, occupation and other

statistics that will help you tailor your products and services as well as your marketing and

communications material.

Evaluate customer service representatives

Questions related specifically to the quality of service your customers received from sales

clerks or other representatives of the company can help you evaluate employee

performance. A customer that wouldn’t normally complain about poor customer service

or praise good customer service on their own accord might make an exception when

presented with a survey that elicits their opinions.

Be convenient for customers

A survey that’s long, difficult to comprehend or onerous in any way is inconsiderate of

the customer’s time. Customers that are gracious enough to take time out of their day to

help you better your business should be rewarded with a survey that’s easy to understand

complete and return.

Lead to change

After customer surveys have been completed and trends have been analyzed, the

company should act on what the results have revealed. If your survey data indicates that

your website is difficult to navigate, take action toward getting the website layout

tweaked. If customers have voiced concerns that your return policy is unfair, revisit and

revise it if necessary. Surveys that don’t evoke changes in the company send a bad

message about the company’s commitment to customer service.

57


ADVANTAGES OF CUSTOMER SATISFACTION

Customer satisfaction surveys have long been woven into corporate organizational business

practices, marketing programs and other customer-engagement initiatives. A customer

satisfaction survey enables a company to gain great insights about customers' needs, wants

and requirements, and generates feedback (critical or praiseworthy) about the company's

products, services and customer service. The results and feedback generated from a customer

satisfaction survey attunes a company towards more focused customer service, and develops

better relationships with customers to achieve brand success.

Feedback

Customer feedback in the form of answers, comments and suggestions about a company's

products, business practices and customer service is one of the major benefits of a customer

satisfaction survey.

Desired Improvements

If feedback is critical or negative on any aspect, quick measures can be taken to bring about

the desired improvements or address grievances and placate relevant customers.

Better Innovation

Analysis of customer feedback surveys and the information collected becomes the basis for

customer intelligence. Used strategically, such intelligence can be used to drive innovation

efforts and initiatives at the company.

Greater Customization

A customer satisfaction survey also shows critical insights about different customer segments

and products so that services and marketing approaches can be tailored accordingly.

Long-Term Relationship

58


Customer satisfaction surveys enable companies too consistently and better address customer

needs and expectations, maintain brand reputation and facilitate long-term relationships with

customers.

‘100% of clients ‘satisfied’ or ‘very satisfied.’

An independently conducted annual customer survey has proven our clients are ‘satisfied’ or

‘very satisfied’ with Digital Genius and would recommend our unique facility management

services to others. We are constantly looking for new ways to improve our service, by

identifying and improving those processes that impact your business.

Product Quality

Well, one important driver in both consumer and business settings is product or service

quality. In addition, for business customers the following attributes related to vendor

performance have an impact on customer satisfaction

Sales representative performance

This includes the ability of sales representatives and account managers to address customer

issues, to understand key strategic issues of the customer, to know the customer business

processes, to be easily reached, and to provide information on current market conditions.

Interesting here is that a longer relationship between the account manager and the customer

has an additional positive effect and can compensate for weaker performance in the other

areas.

Product line

This relates to the breadth of the product line portfolio and the ability to deliver a

comprehensive solution.

Responsiveness

59


This means the time between an addressed inquiry or issue and the response by the sales

representative, the time to resolve issues, and the ability to provide quote responses in time.

Delivery

This relates to the vendor’s ability to deliver the solution in the agreed time and quality. It

also includes the degree of matching committed and delivered functionality and features as

well as the ability to provide flexible delivery options.

Revenue and margin

For cloud product vendors additionally important, but not crucial, criteria for customer

satisfaction are the revenue and margin that your product generates for the customer (who in

this case acts more as a channel partner).

Another two key findings are:

60

http://touro-blog.com/wp-content/uploads/2011/06/Customer-Satisfaction.jpg


Negative performance has a greater impact in business, however the company has to adopt

proactive measures, ensuring them to retain their customers.

The link between customer satisfaction and willingness to pay is non-linear, so that from a

certain point on increasing satisfaction does not translate into higher willingness to pay. The

combination of these two suggest to focus more on avoiding customer dissatisfaction than on

investing too much in customer satisfaction. To maximize overall satisfaction, attribute

performance should be optimized.

For any given factor, negative performance should be eliminated first before focusing on

positive performance. Also, it is important to always monitor customer satisfaction, so you

can react early enough and balance your measures.

Since you want exploit higher willingness to pay also for higher prices, you need to create

customer satisfaction already in the pre-sales phase as well. For that it is very important to

both enable the customer to trial your product or service before the actual purchase and to

have an excellent product presentation highlighting all the benefits without setting false

expectations.

Managing Customer: A CRM best tool to retain the customer:

Customer relationship management (CRM) is a widely implemented strategy for

managing a company’s interactions with customers, clients and sales prospects. It involves

using technology to organize, automate, and synchronize business processes

principally sales activities, but also those for Marketing, Customer service, and Technical

support.

The overall goals are to find, attract, and win new clients, nurture and retain those the

company already has, entice former clients back into the fold, and reduce the costs of

marketing and client service.

61


Customer Relationship Management describes a company-wide business strategy including

customer-interface departments as well as other departments. Measuring and valuing

customer relationships is critical to implementing this strategy.

Benefits of Customer Relationship Management

A Customer Relationship Management system may be chosen because it is thought to

provide the following advantages:

Quality and efficiency

Decrease in overall costs

Decision support

Enterprise ability

Customer Attentions

Increase profitability.

TYPES OF CUSTOMERS

The Marketing Manager should have the knowledge of various types of customers their

attitudes and behavior and ability to recognize and handle them. A sales man must be aware

of all customers with different mindsets. Each customer has his own personality and his

psychological make-up.

There is no ready-made formula to describe the type of customers. However the following

are the important types of customers.

Impulsive Customers

Silent Customers

Talkative Customers

Argumentative Customers

Nervous Customers

Snobbish Customer

Deliberate Customer

62


Price minded Customer

Suspicious Customer

Undecided Customer

Group Shopper

Industrial Buyers

Friendly Customers

DATA ANALYSIS & INTERPRETATION

PART A

AGE GROUP

AgeMaruti Suzuki

SWIFTPercentage Hyundai i-20 Percentage

20-25 5 10 5 10

63


26-31 22 44 15 30

32-37 15 30 11 22

37 & Above 8 16 19 38

Total 50 100 50 100

20-25 26-31 32-37 37 & Above 0

5

10

15

20

25

Maruti Suzuki SWIFTHyundai I-20

INTERPRETATION: From the above table it is clear 44% of the respondents of Maruti Swift users fall under 26-31 age group & 38% of the respondents of Hyundai i-20 users fall under the age group of 37 & above.

GENDER OF RESPONDENTS

GenderMaruti Suzuki


Male 46 92 41 82

Female 04 08 09 18

Total 50 100 50 100

64


Maruti Suzuki SWIFT Hyundai i-200

5

10

15

20

25

30

35

40

45

50

MaleFemale

INTERPRETATIONS: According to the demographic profile in this study we can interpret that maximum numbers of users for both the cars is male. Maximum of 92% & 82% are male users of Maruti Swift & Hyundai i-20 respectively whereas a female user ranges between 8-18%.

OCCUPATION

OccupationMaruti Suzuki


Businessman 06 12 11 22

Employee 31 62 30 60

Student 06 12 05 10

Other 07 14 04 08

65


Total 50 100 50 100

Businessman Employee Student Other0

5

10

15

20

25

30

35

Maruti Suzuki SWIFTHyundai i-20

INTREPRETATIONS: In this survey, it is clear that Employee’s are the majority users for both the cars. 62% of the respondents use Maruti Swift who is an employee & 60% in Hyundai i-20. Employees or officials prefer these 2 cars highly because of the product image & both the cars fall under premiere hatchback car segment.

MONTHLY INCOME

Average IncomeMaruti Suzuki


Below 10,000 02 04 00 00

10,000-20,000 08 16 05 10

21,000-40,000 12 24 09 18

40,000 & Above 28 56 36 72

Total 50 100 50 100

66


Below 10,000 10,000-20,000

21,000-40,000

40,000 & Above

0

5

10

15

20

25

30

35

40


INTERPRETATIONS: Since 62% of this survey is an employee most of them are of 40,000 & above & it shows that below 10,000 incomes group cannot afford these cars.

PART B

CAR YOU OWN

67

Car Number

Maruti Suzuki

SWIFT50

Hyundai i-20 50

Total 100



10

20

30

40

50

60

Number

Number

INTREPRETATIONS: From the above table it is clear there are equal numbers of Maruti Swift & Hyundai i-20 users.

RECOMMENDATION

RecommendationMaruti Suzuki


Friends & Family 26 52 23 46

Personal interest 10 20 13 26

Colleague 12 24 05 10

Sales Representative 02 04 10 20

Total 50 100 50 100

68


Friend

s & Fam

ily

Person

al inte

rest

Colleag

ue

Sales R

eprese

ntativ

e0

5

10

15

20

25

30


INTERPRETATIONS: From the above table it is clear that 52% of the Maruti Swift respondents were influenced by friends & family & 46% for Hyundai i-20, whereas the least were influenced by Sales Representatives in Maruti Swift. It conveys that Hyundai Customer Relation Management is a way better than that of Maruti Suzuki’s.

Reason for buying

ReasonMaruti Suzuki


Style 07 14 12 24

Mileage 09 18 05 10

Resale Value 13 26 06 12

Power 12 24 10 20

Brand Image 02 04 15 30

Maintenance 07 14 02 04

Total 50 100 50 100

69


Style

Mileage

Resale V

alue

Power

Brand I

mage

Mainten

ance

0

2

4

6

8

10

12

14

16


INTERPRETATIONS: From the above table it is clear that there is a slight edge between the resale value & brand image for choosing the Maruti Swift (26% & 24% respectively) & 2% for brand image shows Maruti’s brand image compared to Hyundai that of 30% & also the highest reason the respondents have marked for choosing i-20 as their car.

DURATION OF USAGE

DurationMaruti Suzuki


Less than 1 year 15 30 05 10

1-2 years 18 36 16 32

2-3 years 17 34 08 16

Above 3 years 10 20 21 42

Total 50 100 50 100

70


Less than 1 year 1-2 years 2-3 years Above 3 years0

5

10

15

20

25


INTERPRETATIONS: From the above table it is clear 36% of the Maruti Swift users are using from past 1-2 years which in a way conveys that because of the high resale value respondents have opted Swift car, whereas 42% of the Hyundai i-20 respondents are using their car for more than 3 years.

DISTANCE TRAVELLED

DISTANCEMaruti Suzuki


500-5000 kms 1 02 03 06

5000-20000 kms 08 16 05 10

20000-40000 kms 19 38 20 20

Above 40000 kms 22 44 22 44

Total 50 100 50 100

71


500-5000 kms

5000-20000 kms

20000-40000 kms

Above 40000 kms

0

5

10

15

20

25


INTREPRETATIONS: From the above table it is clear that 44% of the Maruti SWIFT respondents have clocked more than 40,0000 kms & Hyundai i-20 users have also clocked more than 40,000 kms by 44% of the respondents.

SATISFACTION WITH OVERALL PERFORMANCESATISFCTION

WITH OVERALL

PERFORMANCE

Maruti Suzuki


YES 44 88 41 82

NO 06 12 09 18

Total 50 100 50 100

72



5

10

15

20

25

30

35

40

45

50

YESNO

INTERPRETATION: From the above table it is clear that 88% of the SWIFT respondents are highly satisfied with the overall performance of the car & with the slight edge 82% of the Hyundai i-20 respondents are highly satisfied with the car.

EXPERIENCE OF MAJOR PROBLEMS

EXPERIENCE OF

MAJOR

PROBLEMS

Maruti Suzuki


YES 02 04 01 02

NO 48 96 49 98

Total 50 100 50 100

73



10

20

30

40

50

60

YESNO

INTERPRETATIONS: From the above table it is clear that only 4% of Swift respondents have faced the major problems in the car whereas in Hyundai i-20 its only 2%. Here Hyundai i-20 seems to be very reliable.

BREAKDOWN

BREAKDOWNMaruti Suzuki


Very often 00 00 00 00

Often 02 04 01 02

Rarely 05 10 06 12

Not at all 43 86 42 84

Total 50 100 50 100

74


Very often Often Rarely Not at all0

5

10

15

20

25

30

35

40

45

50


INTERPRETATIONS: From the above table it is very clear that both Maruti SWIFT & Hyundai i-20 users haven’t faced very often or often breakdown, this tells about the overall quality of both cars. But at the slight edge 86% of the Maruti Swift respondents & 84% of the Hyundai i-20 respondents have not faced any breakdown at all.

SERVICE SATISFACTION AT AUTHORIZED SERVICE CENTRE

SATISFACTIONMaruti Suzuki


Yes 45 90 47 94

No 05 10 03 06

Total 05 100 50 100

75



5

10

15

20

25

30

35

40

45

50

YesNo

INTREPRETATION: From the above table it is very clear that 90% of the Maruti SWIFT respondents are highly satisfied with the service provided the authorized service centre & almost 94% of the Hyundai i-20 respondents are satisfied with the same. This indicates that Hyundai is successful in providing a very good service.

SALES SERVICE TEAM PROMPTNESS/INFORMATIVEPROMPTNESS/

INFORMATIVE

Maruti Suzuki


Yes 39 78 44 88

No 11 22 06 12

Total 50 100 50 100

76



5

10

15

20

25

30

35

40

45

50

YesNo

INTREPRETATION: From the above table it is clear that 78% of the Maruti SWIFT’s respondent’s queries have been answered promptly & clearly by the Sales Service Team while purchasing the car whereas 88% are of the Hyundai i-20 users are happy with the queries being answered promptly at the time of purchase. It indicates that Hyundai’s sales service team is working effective in giving information to its customers.

PRICING OF THE CAR

PRICINGMaruti Suzuki


Expensive 21 42 38 76

Moderate 11 22 02 04

Reasonable 08 16 06 12

Inexpensive 10 20 04 08

77


Total 50 100 50 100

Expensive Moderate Reasonable Inexpensive0

5

10

15

20

25

30

35

40


INTERPRETATIONS: From the above table it is clear that 42% of the Maruti SWIFT respondents feel the pricing policy is expensive & only 8% say it is reasonable. Whereas 76% of the Hyundai i-20 respondents feel the pricing of the car is expensive & only 12% say it is reasonable. It indicates that Hyundai i-20 respondents are unhappy with the expensive pricing of the car compared to that of Maruti SWIFT.

MAINTANENCE COST

MAINTANENCE

COST

Maruti Suzuki


Expensive 12 24 25 50

High 11 20 15 30

Reasonable 20 22 06 12

Low 07 14 04 08

78


Total 50 100 50 100

Expensive High Reasonable Low0

5

10

15

20

25

30


INTREPRETATIONS: From the above table it is clear that 40% of the Maruti SWIFT respondents feel that the maintenance cost is reasonable whereas 50% of the Hyundai i-20 respondents say that maintenance cost is expensive & 30% say its very high. So it concludes that Maruti SWIFT has a lower maintenance cost compared to that of Hyundai i-20.

BUILD QUALITY

BUILD QUALITYMaruti Suzuki


Excellent 20 40 35 70

Good 22 44 10 20

Average 02 04 03 06

Poor 06 12 02 04

79


Total 50 100 50 100

Excellent Good Average Poor0

5

10

15

20

25

30

35

40


INTERPRETATIONS: From the above table it is clear that 44% of the Maruti SWIFT respondents say the build quality is good & 40% say its excellent, whereas 70% of the Hyundai i-20 users say that the build quality is Excellent. Hyundai i-20 has a better build quality than Maruti Swift.

INITIAL & FINAL PICKUP

INITIAL & FINAL

PICKUP

Maruti Suzuki


Superb 35 70 21 42

Extraordinary 09 18 09 18

Not bad 03 06 15 30

80


Average 02 04 5 10

Total 50 100 50 100

Superb Extraordinary Not bad Average0

5

10

15

20

25

30

35

40


INTERPRETATIONS: From the above table it is clear that 70% of the SWIFT respondents feels the power of their car to be superb & only 2% feel its average, whereas only 42% of the Hyundai i-20 respondents feel the power to be superb & 30% say its not bad. Maruti SWIFT is the clear winner here.

FACTORS CONSIDERED WHILE PURCHASING THE CAR

FACTORS CONSIDERED

WHILE PURCHASING THE

CAR

Maruti Suzuki


Brand 09 18 12 24

Mileage 12 24 08 16

81


Price 07 14 05 10

Features 08 16 13 26

Pickup 10 20 05 10

After Sales Service 04 08 07 14

Total 50 100 50 100

Brand Mileage Price Features Pickup After Sales

Service

0

2

4

6

8

10

12

14


INTERPRETATIONS: From the above table it is clear that maximum of 24% of Maruti Swift respondents chose the car for the Mileage factor whereas maximum of 26% of the Hyundai i-20 respondents chose the car for the Feature factor.

SEATING COMFORT

SEATING

COMFORT

Maruti Suzuki


Very Comfortable 15 30 28 56

Comfortable 18 36 10 20

82


Congested 10 20 07 14

Very Congested 07 14 05 10

Total 50 100 50 100

Very Com

fortab

le

Comfor

table

Conges

ted

Very Con

gested

0

5

10

15

20

25

30


INTERPRETATIONS: From the above table it is clear that maximum of 36% say the seating is comfortable & 14% say its very congested, whereas 56% of Hyundai i-20 respondents say the seating is very comfortable & only 20% say its very congested. So Hyundai i-20 has a better seating comfort.

EXPECTATIONS ABOUT INTERIORS

EXPECTATIONSMaruti Suzuki


Leg-Room 21 42 15 30

83


High Boot Space 18 32 14 28

Adjustable Seat

Height02 04 04 08

Rear AC Vents 07 14 12 24

Chillier Box 02 04 05 10

Total 50 100 50 100

Leg-Room High Boot Space

Adjustable Seat

Height

Rear AC Vents

Chillier Box

0

5

10

15

20

25


INTERPRETATIONS: From the above table it is clear that maximum of 42% Maruti SWIFT respondents expect more of legroom in it & also 18% expect high boot space & also maximum of 30% Hyundai i-20 respondents expect more of legroom & 38% expect more boot space.

GROUND CLERANCE

84


GROUND

CLERANCE

Maruti Suzuki


YES 45 90 42 84

NO 05 10 08 16

Total 50 100 50 100


5

10

15

20

25

30

35

40

45

50

YESNO

INTREPRETATIONS: From the above table it is clear that maximum of 90% Maruti SWIFT respondents are happy with the ground clearance of the car whereas 84% are happy with Hyundai i-20. It is because Indian drives excepts the car to be more versatile on all road conditions. Maruti SWIFT has a better ground clearance.

HAPPINESS WITH SPECIFICATIONSSPECIFICATIONS Maruti Suzuki Percentage Hyundai i-20 Percentage

85


SWIFT

YES 35 70 41 82

NO 15 30 09 18

Total 50 100 50 100


5

10

15

20

25

30

35

40

45

YESNO

INTERPRETATIONS: From the above table it is clear that maximum of 70% respondents are happy with the Maruti Swift’s technical specifications whereas 82% of Hyundai i-20 respondents are happy with the technical specifications because of the high features & greater engine ratio.

HANDLING

86


HANDLINGMaruti Suzuki


YES 26 52 36 72

NO 24 48 14 28

Total 50 100 50 100


5

10

15

20

25

30

35

40

YESNO

INTERPRETATIONS: From the above table it is clear that 52% of Maruti Swift respondents are happy with the handling capabilities & 48% are not, whereas in Hyundai i-20 almost 72% are happy with the handling. So Hyundai i-20 has a better handling capabilities than Maruti Swift.

FINDINGS SUGGESTIONS & CONCLUSIONS

FINDINGS

87


1. Maximum number of Maruti SWIFT respondents have a very good opinion about the

Mileage of the car & its maintenance

2. Almost 76% of the Hyundai i-20 respondents say the pricing of the car is very high.

3. Almost 26% of the Maruti Swift respondents got the car because of its resale value.

4. Almost 70% of the Hyundai i-20 respondents got the car because of hyundai’s brand

image & reputation.

5. Almost 88% of the Maruti Swift respondents & 82% of the Hyundai i-20 respondents

are happy with the overall performance.

6. Almost 72% of the Hyundai i-20 respondents are happy with the handling capabilities

of the car, whereas Maruti Swift has to improve more on that.

7. Most respondents are happy with the specifications of Hyundai i-20 car (82%)

8. Both the cars have good ground clearance on Indian roads.

9. Almost 42% of the Maruti Swift respondents expect more of leg-room in the car.

10. Almost 14% of the Maruti Swift’s respondent says it has very congested seating

comfort.

11. Maruti Swift has superb initial & final pickup

SUGGESTIONS

1. Hyundai should focus on improving the fuel efficiency of its i20 model, the quality

and reliability needs to be worked upon too, on which the resale value of car depends.

2. Hyundai needs to tap the lower middle class and so has to cut down the pricing of

Hyundai i-20 so as to compete more with Maruti Swift.

3. Maruti Suzuki should improvise the overall build quality of Maruti Swift.

4. Maruti Suzuki should improve on sales service team promptness/ customer

relationship management

CONCLUSIONS

1. Maruti Suzuki Swift is considered to be most fuel-efficient car on Indian roads,& has

better quality, higher resale as compared to Hyundai i20.

88


2. Maruti Suzuki Service & Spare parts are available throughout India and in local

markets also, & Swift has comparatively low maintenance cost in contrast to Hyundai

i20.

3. While buying a car, brand image, resale value & brand image plays a vital role

4. Majority of the respondents had bought changed their cars within 5 – 10 years of

purchase of their older cars.

5. Maruti Suzuki Swift has been rated better than Hyundai i20 by the people in terms of

mileage, price, pick up, maintenance and brand image, while Hyundai i20 has only

been rated better in terms of looks and shape.

6. Maruti Suzuki Swift is more preferred than Hyundai i20 by people in terms of Office

and Joy purposes, while Hyundai i20 is more preferred for official use.

BIBILIOGRAPHY

Authors:

89


1. Suja R Nair“ Consumer Behavior in Indian perspective”6th Edition, Himalaya Publication

2. Philip Kotler “Marketing management”13th Edition, Mc Grew Hill

3. C.N.Sontakki “Principles of Marketing”2003, Kalyani Publication

Websites

http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/WhoWeAre/index.html

http://www.marutisuzuki.com/

http://autos.maxabout.com/cars/hyundai

http://autos.maxabout.com/cars/maruti

http://autos.maxabout.com/cars/maruti/swift-2010

http://autos.maxabout.com/cars/hyundai/i20-2011

http://www.ijsrp.org/research-paper-0214/ijsrp-p2670.pdf

ANNEXURE

QUESTIONNAIRE

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http://www.ijsrp.org/research-paper-0214/ijsrp-p2670.pdf

http://autos.maxabout.com/cars/hyundai/i20-2011

http://autos.maxabout.com/cars/maruti/swift-2010

http://autos.maxabout.com/cars/maruti

http://autos.maxabout.com/cars/hyundai

http://www.marutisuzuki.com/

http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/WhoWeAre/index.html


A Comparative Study on “Consumer Behavior between Maruti Swift and

Hyundai i – 20”, Mysore.

Dear Sir/Madam,

I Karthik K J student of 4th semester MBA at Pooja Bhagavat Memorial Mahajanas PG Centre, as a part of my curriculum have undertaken the project on Consumer Behavior between Maruti Swift and Hyundai i– 20, Mysore. I would be grateful if you can kindly cooperate with me by spending your precious time and providing me valuable information needed for the project .any information received from you will be kept strictly confidential.

PART A

1. Name: - ……………………………………………………………………………...2. Contact-No. …………………………………………………………………………3. Age: - a) 20-25 b) 26-31

c) 32-37 d) Above 37

4. Gender: - Male: Female: 5. Occupation: -

a) Businessman b) Employee c) Student d) Other

6. Average income: -a. Below 10,000b. Between 10,000-20,000c. Between 21,000-40,000d. 40,000 & above

PART B

Please select the car & tick the appropriate options below

1. Which car are you using?a) Maruti Swift

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b) Hyundai i-20

2. Who recommended you to buy the car?a) Friends & Family b) Personal interestc) Colleagued) Sales Representative

3. Important reason for buying the car?a) Styleb) Mileagec) Resale Valued) Powere) Brand Imagef) Maintenance cost

4. For how many years are you using the car?a) Less than 1 yearb) 1-2 yearsc) 2-3 yearsd) Above 3 years

5. Distance travelled by the car?a) 500-5000 Kms b) 5000-20000 Kmsc) 20000-40000 Kmsd) Above 40000 Kms

6. Are you satisfied with the overall performance of the car?a) YESb) NO

7. Have you experienced any major problems in your car?a) YESb) NO

8. How often have you faced breakdown in your car?a) Very oftenb) Oftenc) Rarelyd) Not at all

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9. Are you satisfied with the overall Services provided by the Authorized Service Centre?a) YESb) No

10. Are your queries have been answered promptly & clearly by the Sales Service Team while purchasing the car?a) Yesb) NO

11. How do you feel about the pricing of the car?a) Expensiveb) Moderatec) Reasonabled) Inexpensive

12. How do you rate the maintenance cost of your car?a) Very Expensiveb) Highc) Reasonabled) Low

13. How do you rate the build quality of the car?a) Excellentb) Goodc) Averaged) Poor

14. How do you feel about the Initial & Final pickup of your car?a) Superbb) Extraordinaryc) Not badd) Average

15. What factors did you consider while purchasing the car?a) Brand b) Mileagec) Priced) Featurese) Pickup

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f) After Sales Service

16. How do you rate the seating comfort of your car?a) Very comfortableb) Comfortablec) Congestedd) Very congested

17. What factors you expect more about the interiors of the car?a) Leg-roomb) High boot-spacec) Adjustable seatd) Noise-free cabine) Rear AC ventsf) Chiller box

18. Are you happy with the ground clearance of your car?a) YESb) NO

19. Are you happy with the specifications of your car with respect to the pricing?a) YESb) NO

20. How do rate the handling of your car?a) Very Goodb) Goodc) Averaged) Poor

THANK YOU

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Final Project Report

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