A PROJECT REPORT ON “The study of consumer buying behavior towards small & medium car segment with special reference to Maruti Suzuki India Ltd.” Submitted in partial fulfillment for the Award of degree of Master of Business Administration Submitted By:- HARSH JAIN MBA SEM IV Submitted To: 1
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A
PROJECT REPORT
ON
“The study of consumer buying behavior towards small & medium car segment
with special reference to Maruti Suzuki India Ltd.”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Submitted By:-
HARSH JAIN
MBA SEM IV
Submitted To:
Mr.Abhayjeet Singh
2007-09
Poornima School of Management
ISI-2 RIICO Institutional Area, Sitapura, Jaipur
1
DECLARATION
I hereby, declare that the project entitled “Study of consumer buying
behavior towards small & medium car segmen with special reference to
Maruti Suzuki India ltd.” is my work carried out under the guidance of my
faculty guide Mr. Abhayjeet Singh (Asst. Dean, DMS-PGC) & Miss Karishma
(Faculty,DMS-PGC).
I Harsh jain further declare that all facts and figures furnished in this
project report are the outcome of my own intensive research and findings.
HARSH JAIN
2
ACKNOWLEDGEMENT
As Per the curriculum of 4th semester of MBA, we have to undergone
through a detailed project study. I wish to express my gratitude to
Rajasthan Technical University for giving me an opportunity to be a part of
such kind of learning experience, which will surely enhance my knowledge
and skills.
I am grateful to Mr. Abhayjeet Singh (Asst. Dean, DMS-PGC) & Miss
Karishma (Faculty,DMS-PGC) for their invaluable guidance and cooperation
during the course of the project. They provided me with their assistance
and support whenever needed that has been instrumental in completion
of this project.
The project has been a great experience, the learning and the exposure I
got through this project was immense and will surely help me in my future
pursuits.
The project wouldn’t have been a success without the support of Shri R.K.
Agarwal (Advisor-PGC) who was always there to help with their advices
and constant backing.
I would like to show my gratitude towards the management and staff for
taking time to help me and for their suggestion and comment, which
helped me a lot throughout the project.
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HARSH JAIN
TABLE OF CONTENT
1. Introduction to the industry
2. Introduction to the organization
3. Research Methodology
3.1 Title of the study
3.2 Duration of the study
3.3 Objective of the study
3.4 Type of research
3.5 Sample size &method of selecting sample
3.6 Scope of study
3.7 Limitation of study
4. Theoretical framework
5. Interpretation & analysis
6. Facts & findings
4
7. SWOT
8. Conclusion
9. Recommendation
10 Appendix
11 Bibliography
The study of consumer buying behavior towards
small & medium car segment with special
reference to Maruti Suzuki India ltd
5
Executive summery
Title
The Study of Consumer buying behavior towards small & medium car
segment with special reference to Maruti Suzuki India ltd.
Issue
Consumer behaviour is ‘the mental and emotional processes and the
observable behaviour of consumers during searching purchasing and
post consumption of a product and service. People buy different
products from different brands to satisfy their needs. Consumer
purchases are influenced strongly by cultural, social, personal and
psychological characteristic. Although marketers cannot control such
factors, they must give attention to them. Boston Analytics, a
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customized knowledge services company, has announced the
release of its “Automotive Industry in India” report as a part of the
series of monthly reports that analyze consumer observations and
sentiments regarding a automotive sector. According to this report
consumer think about the following aspect while making decision of
purchase a car:
CAR PURCHASING PREFERENCES
Primary factors of preference
Price and fuel efficiency are the primary features that
consumers expect today.
There will be an increase in the importance of fuel efficiency in
approximately three to five years from now for consumers.
Sales service, brand image/prestige, and resale value are
secondary factors of choice today and will remain so for the
coming three to five years.
Environmental issues have yet to take root in India and do not
show signs of becoming a major factor for coming three to five
years.
Car size
Affluence and aspiration are growing in parallel—The Indian
consumer prefers a mid-size car.
Our survey reveals that approximately one in two Indian
consumers prefer a roomy mid-size family car.
Indian versus foreign brand
There is evidence of “buy-Indian” mindset across the metros
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Approximately three in four respondents prefer an Indian brand
over a foreign one recently launched versus established model
Indian consumers are divided in their preference for recently
launched versus established models of cars.
According to the results of the survey, 58% of respondents
nationwide prefer a recently launched model by a slight
plurality.
Color preference
The color pie in the Indian car market shows that White is the
most preferred color, closely followed by Black and Silver
Approximately 29% of respondents preferred White, followed
by 27% and 21% of respondents opting for Black and
Silver/Grey respectively
Thus the main issue in this project is to analyzing consumer buying
pattern while they make decision regarding purchase of car especially
in small car segment.
PROBLEM
Thus problem of this project report is studying the consumer buying
pattern regarding small & medium car segment with special reference
to Maruti Suzuki India ltd and study about the consumer perception
and attitude toward the same.
OBJECTIVE OF THE STUDY
8
The basic objective of the project during the research and study will
be focused on the following parameters:
To know consume preference regarding small cars
To know what features and services attract the customers
Effect of brand image in buying behavior
Impact of advertisement in buying behavior
Impact of celebrity endorsement in buying behavior
Effect of family &friends in buying behavior (Focus group)
RESEARCH is a scientific and systematic search for pertinent
information on a specific topic. It is also said to be the pursuit of truth
with the help of study, observation, comparison and experiment.
RESEARCH METHODOLOGY is a way to systematically solve the
research problem.
RESEARCH DESIGN
Research Design is the overall description of all the steps though
which the projects have preceded from the setting of objectives to the
writing of the project report. The success of the project depends on
the soundness of the research design, which includes problem
definition, specific method of data collection and analysis and time
required for the project.
The research that is undertaken is “Descriptive & exploratory” in
nature. The research is to find out the customers’ preference and
attitude towards decision making of selecting appropriate small &
medium car which suits to their need.
DATA COLLECTION METHOD
Two methods of collecting data used for this research are as follows: -
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PRIMARY DATA –
Data is collected primarily through personal contact, meeting,
interview and questionnaire with the concerned authority of the
organization and investors’.
SECONDARY DATA –
Data are collected through secondary modes such as various
published data, reports, related books and websites.
SAMPLE SIZE
The procedure adopted to select the sample was simple random
sampling. The sample consists of 50 respondents’ and was restricted
to people residing in Jaipur.
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1. Introduction
to the
Industry
11
(Automobile
Industry)
Indian Automobile Industry-An Overview
The automobile industry is one of the core industries in India
economy, whose prospect is reflective of the economic resilience of
the economy. Indian automobile industry has come a long way to
from the era of the Ambassador car to Maruti 800 to latest M&M Xylo.
An industry is highly competitive with a number of global and Indian
companies present today. It is growing at a pace of around 18% per
annum for the last five years and is projected to be the third largest
auto industry by 2030 and just behind to US & China, according to a
report. The industry is estimated to be a US$ 34 billion industry. With
the liberalization of the economy, India has become the playground of
major global automobile majors.
Indian Automobile industry can be divided into three segments i.e.
two wheeler, three wheeler & four wheeler segment. Two wheeler
segments enjoys 75% market share of automobile industry, followed
by passenger vehicles with the 16% share of market. Three wheeler
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segments have merely 4% share in domestic market. The domestic
two-wheeler market is dominated by Indian as well as foreign players
such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and
Suzuki etc. Maruti Udyog and Tata Motors are the leading passenger
car manufacturers in the country. And India is considered as strategic
market by Suzuki, Yamaha, etc.
The major players have not left any stone unturned to be global.
Major of the players have got into the merger activities with their
foreign counterparts. Like Maruti with Suzuki, Hero with Honda, Tata
with Fiat and latest Mahindra with Renault.
In two-wheeler segment, motorcycles have the major share, Hero
Honda, the leading bike manufacturer has more than 50% share in
two-wheeler segment, followed by Bajaj Auto. In passenger car
segment, Maruti Suzuki contributes the 52% market share, with
complete monopoly over the small car segments. M&M enjoy the 42%
market share in Multi Utility Vehicle in domestic market.
Current Scenario
The Indian automobile industry crossed a landmark with total
vehicle production of 10 million units.
The two-wheeler market grew by 13.6 per cent with 70, 56,317
units against 62, 09,765 units in 2004-05.
Commercial vehicles segment grew at 10.1 per cent with 3,
50,683 units against 3, 18,430 units in 2004-05.
India, in auto sector, is turning to be a sourcing base for the global
auto majors. The passenger car and the motorcycle segment is set to
grow by 8-9 per cent in coming couple of years, says the ICRA report.
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The industry is likely to maintain the growth momentum picked up in
2002-03.
The ICRA's analysis points on the auto sector that the passenger car
market in the country was inching towards cars with higher
displacements. The sports-utility-vehicle (SUV) that was getting
crowded every day, would witness intense competition as many SUVs
had been competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers
had already launched their premium SUVs in the market to broaden
their portfolio and create product excitement in the segment estimated
at about 10,000 units annually.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent.
Heavy commercial vehicles market would rise at 5.5 per cent and
sales of light buses and trucks would achieve 4.7 per cent growth. For
the tractors, the report predicts a growth at 4.6 per cent.
Indian Auto Market Growth for the year 2005-06
The domestic automobile industry sales grew 12.8 per cent at
89, 10,224 units as against 78, 97,629 units in 2004-05.
The automotive industry crossed a landmark with total vehicle
production of 10 million units.
According to the Society of Indian Automobile Manufacturers
(SIAM), car sales was 8, 82,094 units against 8, 20,179 units in
2004-05.
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The growth of domestic passenger car market was 7.5 per cent
Car exports stood at 1, 70,193 units against 1, 60,670 units in
2004-05.
The two-wheeler segment, the market grew by 13.6 per cent
with 70, 56,317 units against 62, 09,765 units in 2004-05.
Motorcycles had the upward march, 17.1 per cent in domestic
market touching 58, 15,417 units against 49, 64,753 units in
2004-05.
Scooter segment grew by 1.5 per cent, fall at 9, 08,159 units
against 9, 22,428 units in 2004-05.
Commercial vehicles segment grew at 10.1 per cent with 3,
50,683 units against 3, 18,430 units in 2004-05.
Medium and heavy commercial vehicles managed a growth of
4.5 per cent against 23 per cent growth in the year ended
March 31, 2005.
Light commercial vehicles sales growth was 19.4 per cent at 1,
43,237 units against 1, 19,924 units in 2004-05.
Three-wheelers sales rose by 17 per cent at 3, 60,187 units
against 3, 07,862 units in 2004-05.
In this competitive scenario consumer has number of choices for
selecting motorbikes as well as cars thus there are number of choices
and brands available to the customer. The basic issue with this
project is to study about the consumer preference toward
selecting/purchasing small & middle segment or economic car among
the available alternatives.
Auto industry in 2008
All the major auto companies enjoyed the high growth ride till the mid
2008. But at the end of the year, industry had to face the hard truth
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and witnessed the fall in sales compared to last year. In December
2008, overall production fell by 22 % over the same month last year.
Global recession has hit the Indian auto industry, India is strong and
growing industry but the impact of recession is evident now on
industry as sales & growth of automobile companies have declined.
Passenger Vehicles segment registered negative growth. One of its
supporting facts is that the sales in December 2008 for passenger
vehicles fell by 13.86% over December 2007. Maruti- the leading car
manufacturer, registered 10% fall in sells (56293 units), as compared
to December’07 (62,515 units). But interestingly, Hyundai motors, the
second largest car maker of country, registered a growth in sells, with
the help of export; Hyundai Motors reported 19% growth.
Two Wheelers registered minor growth of 1.85 % during April –
December 2008. However, Two Wheelers sales recorded 15.43
percent fall in December 2008 over the same month last year. In two
wheeler segment, Hero Honda has witnessed 10% fall (215,931 units
in Dec 2008) in sales as compared to December 2007 (240,532
units). Bajaj Automobile has registered 33% fall in its over all two
wheeler sells, compared to last year. The company has reported 37%
negative growth in bike sells.
Although the year 2008 saw a record launches of new products of
various categories. Maruti launched A Star, its new small segment
car. Honda Motors launched the new version of Honda city, its best
selling sedan, also Civic Hybrid. Hyundai motor was not also far
behind, in the end of the year, Hyundai launched its much awaited
sedan i20.
In Bikes segments, this year was full of happening. Yamaha
introduced its two new hi-end models YZF & R15. Suzuki Motorcycle
India also launched its legendary bike Hayausa & Intruder in Indian
market.
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Road ahead- 2009
The Indian automobile market is expected to grow by 9%. Although
the industry has faced the brunt of recession, the sales figures of
December’08 are the true indicator of bang of global slow down. India
with growing middle class, strong economy (although recession has
hit the economy, but to be on positive side, will come over soon) and
with trained workforce has a strong future of automobile industry. All
the big foreign players are eyeing on Indian market.
·Japanese company Nissan Motors has identified India as its
global manufacturing hub
Hyundai has invested huge money in India and has positioned
it as small car manufacturing
hub in the word
·General Motors, Mercedes –Benz, Skoda Auto, all have big
plans for India and will invest huge funds
It is sacrilege to say that the world economy has been undergoing
with the huge crisis. And automobile industry is not far behind in
league. Undoubtedly, the coming time would be a challenge for the
automobile industry. Bike manufacturers have already started facing
the problems, loan & finance for new bike is not available easily in
semi urban & rural market. Banks and other financial institutions have
baked out from finance.
In spite of all these, this year will see a positive growth with some new
launches of cars & bikes. We should not forget the launch of much
awaited Tata Nano which will soon be seen on Indian roads. Bajaj
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Auto is planning to roll out 6 new bikes in the year 2009. Hero Honda,
Suzuki Motorcycle, Yamaha India, all is set to knock the Indian
market with their new products.
I believe that Indian automobile industry is bit immune in comparison
to its competitors. Global big three, GM, Ford & Chrysler are not in
good state of health, US Govt. has released a bailout, Considering all
these facts & current situations, we can conclude the following :-
Indian automobile industry may face the liquidity crunch in the
upcoming months. Few projects have already been on halt. For
example, Honda Motors has stopped work on its upcoming
project in Rajasthan
Sells may drop in the upcoming months as the finance for the
new products are easily not available. Motorcycle
manufactures will face the brunt of financial institutions
unwillingness of providing loans to the smaller cities.
The Government of India should make the norms and policies
bit lenient like making the loan process easier & affordable,
asking the public sector banks to cut the interest rates, etc.
Global Recession Hits Indian Auto Industry
Global recession has devastated the global auto industry with
pinching effects on the Indian auto industry. India is a strong and
growing economy but the hit of recession has put red marks on the
entire balance sheet of the Indian economy.
Among the leading car manufacturers, General Motors and Ford were
the first one to file for bankruptcy. GM is struggling to stay alive and
claims that the company has just enough cash to continue its
operations. Even the merger talks of GM and Chrysler have been
officially brought to a halt because of the liquidity crunch.
U.S sales have fallen down by 32% which has directly affected the
Indian car industry where GM has recorded a fall of 45%, Ford of 30%
Wrapped Steering Wheel, Seat Belt Warning (All 5 seats), Height
Adjustable Driver Seat, FATC Air Conditioner with Heater, Electrically
Adjustable ORVM and folding ORVM and Steering Audio Remote.
Hyundai i20 ASTA (O)
Including all features of ASTA model, this variant also consists Side &
Curtain Airbags.
TECHNICAL SPECIFICATIONS OF HYUNDAI i20
MAGNA ASTA & ASTA(O)
DIMENSION & WEIGHT
Overall Length (mm) 3940
Overall Width (mm) 1710
Overall Height (mm) 1505
Wheelbase (mm) 2525
Front Track (mm) 1505
Rear Track (mm) 1503
Fuel Tank capacity (l) 45
ENGINE
Material All Aluminium Cylinder Engine
No.of cylinders 4
No. of valves 16
Valvetrain (type) (SOHC / DOHC) DOHC
Displacement (cc) 1197
Maximum Power (ps/rpm) 80 / 5200
Maximum Torque (Kgm/rpm) 11.4 / 4000
SUSPENSIONS
Front Suspension Mc Pherson Strut with Coil Spring
Rear SuspensionCoupled Torsion Beam Axle with Coil
Spring
Shock Absorbers Gas Type (Front & Rear)
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BRAKES
Front Disc
Rear Drum
TYRE
Size & Type175/70 R14,
Tubeless Steel wheel
185/65 R14, Tubeless Alloy
wheel
TRANSMISSION
Type 5-Speed Manual
Hyundai Accent
Hyundai Accent was ceremonially launched at Frankfurt International Motors Show on 15 September, 1999. It came in two versions, i.e. Petrol and Diesel Versions in India initially, while in Europe it was introduced only with the Petrol version. Initially Accent came up with the manual transmission which in turn started
getting available in automatic transmission. The car was powered by 1.5 litre, 94 bhp engine.
To know about the models of this car, please see this following text : Hyundai Accent GLE Hyundai Accent GLS Hyundai Accent Viva Hyundai Accent Viva CRDi Hyundai Accent CRDi
Hyundai Accent GLE
This model has many distinctive features like 60:40 split folding rear
seats, automatic trunk lamps, body colored door handles, bumper
This model is well equipped with various safety and comfort features like
body colored bumpers, full door arm rest, heater and air-conditioner, tinted
glass, vanity mirror LH, tachometer, power steering and power windows,
front and rear speakers, dual-member side impact beams, rear seat belts, rear
defogger, day and night mirror, fog lamps, full size wheel covers etc.
TECHNICAL SPECIFICATIONS OF HYUNDAI ACCENT
DIMENSION & WEIGHT
Overall Length (mm) 4250
Overall Width (mm) 1670
Overall Height (mm) 1370
Wheelbase (mm) 2440
Ground Clearance (mm)
172
Fuel Tank Capacity (L)
45
Kerb Weight (Kg) 1039
ENGINE
Model Designation Hyundai Alpha
Configuration and No. of Cylinders
4-Cylinder, in-line, 12-V, DOHC, Petrol
Fuel system MPFI
Displacement (cc) 1495
Ignition System Electronic Ignition
PERFORMANCE
Max. Horsepower (ps/rpm)
94/5500
Max. Torque (kg m/rpm)
12.5/3500
SUSPENSIONS
Front SuspensionMcPherson Strut with coil spring,gas filled
Shock Absorber & Stabilizer Bar
Rear SuspensionDual Link with Coil Spring gas filled Shock
Absorber & Anti-roll Bar
STEERING
Steering System Rack & Pinion
Power Assisted Standard
Min. Turning Radius (m)
5.0
BRAKES
Type Diagonal,dual circuit,hydraulic,power
assisted
Front Brakes Ventilated Disc
Rear Brakes Drum
57
TYRES & WHEELS
Type Pressed Steel Disc
Size 5J X 13
Hyundai Getz Prime
Getz Prime is one of the most esteemed brands of Hyundai Motors, India, with which they are again trying to monopolize their hold on the automotive sector. The newest version of the Getz has captured the hearts of all car connoisseurs
yearning for style with grace. Giving tough competition to all leading auto brands, Getz Prime is available with two petrol engine options, 1100 cc and 1300 cc. With a competitive price, the lucrative brand has many highlighted features such as an all new hep look projected in a bit more rounded shape & modern in nature. Adorned gracefully with a larger & sleekly designed glasshouse, Hyundai's latest venture is surely going to give others a run for their money.
ColorsHyundai Getz Prime is available in a range of vibrant colors which are primarily :
Noble white Passion red Blue onyx Bright silver Deep pearl blue Dynasty red Ebony black Midnight grey Real earth Sky blue Space silver
Variant Getz Prime from Hyundai is available in four variants, almost alike but differing in some or the other points. These are popularly :
Getz Prime 1.1 GLE Getz Prime 1.1 GVS Getz Prime 1.3 GLS
Hyundai Getz Prime 1.1 GLE & Hyundai Getz Prime 1.1 GVS are almost same models. Though they differ from the other two variants in following manner :
995 is their kerb weight (Kg) 1086 as displacement (cc) 66.6/5500 is the maximum engine power (ps/rpm) 10.4/3200, the max. torque (kgm/rpm) 155/80 R13 as tyre size
Hyundai Getz Prime 1.3 GLS & 1.3 GLX
Hyundai Getz Prime 1.3 GLS & Hyundai Getz Prime 1.3 GLX, on the other hand are almost similar in their features.
1012-1033 is the kerb weight (Kg) 1341 as displacement (cc) 82.9/5,500 is the maximum engine power (ps/rpm) 11.8/3200 as max. torque (kgm/rpm)
Though the tyre size differ in both. While 1.3 GLS has 175/70 R13 (GLS) as size
type, 1.3 GLX is marked with 175/65 R14 (GLX) size type.
TECHNICAL SPECIFICATIONS OF HYUNDAI GETZ PRIME
DIMENSIONS
Overall Length (mm) 3810
Overall Width (mm) 1665
Overall Height (mm) 1515
Wheelbase (mm) 2455
Kerb Weight (Kg) 1012-1033
Fuel Tank Capacity (L) 45
ENGINE & TRANSMISSION
Configuration and No. of Cylinders
Type 4 Cylinder SOHC Petrol
Fuel system MPFI
Displacement (cc) 1341
Transmission 5 Speed Manual
Max. Horsepower (ps/rpm) 82.9/5500
Max. Torque (kgm/rpm) 11.8/3200
SUSPENSION Front Suspension Independent Macpherson Strut with Torsion Bar
Rear SuspensionDependent Torsion Beam Axle and Coil Spring
BRAKESFront Brakes Ventilated Discs
Rear Brakes Drums
TYRES
Type Radial
Size(155/80 R13) (175/70 R13) (175/65 R14 )
Hyundai Santro
In the field of mid size car, Santro Xing is capturing the market very rapidly. Its design, style, space and other special features has made it one of the highest purchasable car among any economy class.
It has five variants : Santro XK Santro XK (Non AC) Santro XL Santro XO Santro AT Santro CNG
Santro XK
Along with the other features that are present in Santro XK (Non AC),
other features present in this model are air conditioner, day and night
inside rear view mirror, chrome1 radiator grille etc.
Santro XK (Non AC)
This model of Santro is without Air-conditioner. It has features like
dual side impact beams, standard inside rear view mirror, clear head
floor console, exclusive molded door trim, driver side seat under tray,
internally adjustable OVRMs, rear wiper and washer, rear defogger,
passenger side vanity mirror etc.
Santro AT
Excluding the special features in other models , Santro AT has almost
all the common features of other models.
Santro CNG
Hyundai Motor India adds to its glitter by launching Santro CNG thus making it
even more economical and eco-friendly car. This new variant of sSantro offers its
buyers with one more option to muse over because of its estimated low running
cost of only Rs.1/km thus increasing the savings of the consumer up to 60- 70% .
To ensure the better safety, CNG kits contains advanced Lambda control system
to provide Euro III emission norms. The car also has an optional manual selector
switch which makes the user to make a choice between gasoline or CNG. The
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CNG on-board cylinder has an approximate capacity of 12 kg with a 2 year
warranty on CNG kit and its fitments.
TECHNICAL SPECIFICATIONS OF HYUNDAI SANTRO
Santro Xing eRLX
DIMENSIONS
Overall Length (mm) 3565
Overall Width (mm) 1525
Overall Height (mm) 1590
Wheelbase (mm) 2380
Min Turning Radius (m) 4.4
Kerb Weight (Kg)854(M/T)868(A/T)
Fuel Tank Capacity (L) 35
ENGINE
No. of Cylinders 4
No. of valves 12
Valvetrain (type ) SOHC
Displacement (cc) 1086
Maximum Power (ps/rpm) 63@5500
Max. Torque (kgm/rpm) 9.8 @ 3000
SUSPENSION
Front SuspensionMcPherson Strut with
Stabilizer Bar
Rear Suspension
Torsional Beam Axle , 3 Link Offset Coil
Spring & Hydraulic Damper
Front Ventilated Discs
Rear Drums
Size 155/70R13
BRAKESFront Ventilated Discs
Rear Drums
TYRE Size 155/70R13
Hyundai Verna
The clean, modern and trendy texture of the Verna
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portrays itself as an object of panache. Rich in style and swift in movement, makes Verna the ultimate symbol of elegance. Verna is although a medium segment luxury sedan, however it has well been crafted in a way that it projects a very sporty look on itself. The below mentioned traits of Verna in the domain of luxury, comfort and design is such that it could impeccably create a sensation amongst every generation.
Salient features Integrated wrap around headlights Micro antenna Led high mounted stop lamp 5.5J x 14" Alloy wheel Gauge cluster and trip computer Portable ash tray Ample storage space Rear center and seat armrests Adjustable power steering wheel Fully automatic temperature control Bigger disc brakes
Models Verna i (Petrol) Verna Xi (Petrol) Verna XXi (Petrol) Verna CRDi VGT
Available Colours Noble white Ebony black Bright silver Passion red Dynasty red Real earth Husky blue Deep pearl blue
Verna i (Petrol)
It comes with 2 tone interiors, power window/steering, central locking
system and an ample internal storage space.
Verna Xi (Petrol)
63
This version has an exclusive front seat center armrest along with
seat back pockets and seat back hook. It also has an additional
feature of a dual height adjustable driver seat.
Verna XXi (Petrol)
This version comes with the alloy wheels along with the leather
wrapped steering wheel. It also has a luggage net and a trip computer
dedicated to this version only. It also comes with the option of ABS
(anti-lock braking system).
TECHNICAL SPECIFICATIONS OF HYUNDAI VERNA
64
Body Three Box 4 door Saloon
Brakes
Front Ventilated Disc Brakes
Rear Drum / Disc (ABS)
Dimension & Weight
Front Track -
Fuel Tank capacity 45 Litres
Gross Vehicle Weight 170 mm
Ground Clearance -
Kerb weight -
Overall Height 1490 mm
Overall Length 4310 mm
Overall Width 1695 mm
Rear track -
Wheelbase 2500 mm
Engine
Bore x Stroke -
Compression ratio -
Displacement 1599 cc
Fuel System -
No. cylinders / arrangement / Valves
VTVT - Variable Timing Valve Train,16V – DOHC
Performance
Max. Power 103.2 ps @ 5500 RPM
Max. Torque 14.9 kgm @ 3000 RPM
Steering
Min. Turning Radius 4.92(5.05)
Type Rack and Pinion Power steering
Suspension
Front MacPherson Strut with coil springs and anti roll bar
Rear Coupled torsion beam axle
Transmission
Transmission Type 5 Speed Manual
Tyres & Wheels
Tyres P235 / 70 R 16 Radial
Wheel size
65
TATA MOTORS LTD
TATA MOTORS LTD
66
Tata Motors Limited is India’s largest automobile company, with
revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is
the leader in commercial vehicles in each segment, and among the
top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The company is
the world’s fourth largest truck manufacturer, and the world’s second
largest bus manufacturer.
The company’s 23,000 employees are guided by the vision to be
“best in the manner in which we operate, best in the products we
deliver, and best in our value system and ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the
length and breadth of India. Over 4 million Tata vehicles ply on
Indian roads, since the first rolled out in 1954. The company’s
manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a
strategic alliance with Fiat in 2005, it has set up an industrial joint
venture with Fiat Group Automobiles at Ranjangaon (Maharashtra)
to produce both Fiat and Tata cars and Fiat powertrains. The
company is establishing a new plant at Sanand (Gujarat). The
company’s dealership, sales, services and spare parts network
comprises over 3500 touch points; Tata Motors also distributes and
markets Fiat branded cars in India.
Tata Motors, the first company from India’s engineering sector to be
listed in the New York Stock Exchange (September 2004), has also
emerged as an international automobile company. Through
subsidiaries and associate companies, Tata Motors has operations
in the UK, South Korea, Thailand and Spain. Among them is Jaguar
Land Rover, a business comprising the two iconic British brands that
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was acquired in 2008. In 2004, it acquired the Daewoo Commercial
Vehicles Company, South Korea’s second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market, while also
exporting these products to several international markets. Today
two-thirds of heavy commercial vehicle exports out of South Korea
are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake
in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, with an option to acquire the remaining stake as well.
Hispano’s presence is being expanded in other markets. In 2006, it
formed a joint venture with the Brazil-based Marcopolo, a global
leader in body-building for buses and coaches to manufacture fully-
built buses and coaches for India and select international markets.
In 2006, Tata Motors entered into joint venture with Thonburi
Automotive Assembly Plant Company of Thailand to manufacture
and market the company’s pickup vehicles in Thailand. The new
plant of Tata Motors (Thailand) has begun production of the Xenon
pickup truck, with the Xenon having been launched in Thailand at
the Bangkok Motor Show 2008.
Tata Motors is also expanding its international footprint, established
through exports since 1961. The company’s commercial and
passenger vehicles are already being marketed in several countries
in Europe, Africa, the Middle East, South East Asia, South Asia and
South America. It has franchisee/joint venture assembly operations
in Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company’s growth over the last 50 years is a
deep understanding of economic stimuli and customer needs, and
the ability to translate them into customer-desired offerings through
leading edge R&D. With over 2,500 engineers and scientists, the
company’s Engineering Research Centre, established in 1966, has
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enabled pioneering technologies and products. The company today
has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in
South Korea, Spain, and the UK. It was Tata Motors, which
developed the first indigenously developed Light Commercial
Vehicle, India’s first Sports Utility Vehicle and, in 1998, the Tata
Indica, India’s first fully indigenous passenger car. Within two years
of launch, Tata Indica became India’s largest selling car in its
segment. In 2005, Tata Motors created a new segment by launching
the Tata Ace, India’s first indigenously developed mini-truck
In January 2008, Tata Motors unveiled its People’s Car, the Tata
Nano, which India and the world have been looking forward to. The
Tata Nano has been subsequently launched, as planned, in India in
March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car
within the reach of thousands of families. The standard version has
been priced at Rs.100,000 (excluding VAT and transportation cost).
Designed with a family in mind, it has a roomy passenger
compartment with generous leg space and head room. It can
comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds
regulatory requirements in India. Its tailpipe emission performance
too exceeds regulatory requirements. In terms of overall pollutants,
it has a lower pollution level than two-wheelers being manufactured
in India today. The lean design strategy has helped minimise weight,
which helps maximise performance per unit of energy consumed
and delivers high fuel efficiency. The high fuel efficiency also
ensures that the car has low carbon dioxide emissions, thereby
providing the twin benefits of an affordable transportation solution
with a low carbon footprint.
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The years to come will see the introduction of several other
innovative vehicles, all rooted in emerging customer needs. Besides
product development, R&D is also focussing on environment-friendly
technologies in emissions and alternative fuels.
Through its subsidiaries, the company is engaged in engineering
and automotive solutions, construction equipment manufacturing,
automotive vehicle components manufacturing and supply chain
activities, machine tools and factory automation solutions, high-
precision tooling and plastic and electronic components for
automotive and computer applications, and automotive retailing and
service operations.
True to the tradition of the Tata Group, Tata Motors is committed in
letter and spirit to Corporate Social Responsibility. It is a signatory to
the United Nations Global Compact, and is engaged in community
and social initiatives on labour and environment standards in
compliance with the principles of the Global Compact. In accordance
with this, it plays an active role in community development, serving
rural communities adjacent to its manufacturing locations.
With the foundation of its rich heritage, Tata Motors today is etching
a refulgent future.
Tata IndigoIndigo with its market catching features like leather upholstery, beige
interiors, LCD screen etc has made its position in the automobile
Tata Indigo LS Dicor features manually operated outer rear view
mirror, black dials, & Benz silver as the new pattern for console &
AC fascia. It has no mounted LCD screens.
Indigo LX Dicor
Tata Indigo LX Dicor on the other hand features manually operated
with chrome strip outer rear view window, black dials with chrome
rings & star check as the new pattern for its console & AC fascia
TECHNICAL SPECCATIONS OF TATA INDIGO
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ENGINES
Petrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. power - 85 PS @ 5500 rpm Max. torque - 12 Kgm @ 3500 rpm
Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power - 70 PS @ 4500 rpm Max. Torque - 13.5 kgm @ 2500 rpm
Dicor 32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger(VGT) Max.power-70 PS@4000 rpm Max.torque - 140Nm@1800-3000 rpm
SUSPENSIONS
Front Independent McPherson strut with anti-roll bar
Rear Independent 3-link McPherson strut with anti-roll bar
STEERING
Type Rack and pinion type with collapsible steering column
Turning Radius
5.0 m
BRAKES
Type Vacuum assisted dual circuit, diagonal split hydraulic brakes through tandem master cylinder
The study of consumers helps firms and organizations improve their
marketing strategies by understanding issues such as how
The psychology of how consumers think, feel, reason, and
select between different alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or
her environment (e.g., culture, family, signs, media);
The behavior of consumers while shopping or making other
marketing decisions;
Limitations in consumer knowledge or information processing
abilities influence decisions and marketing outcome;
How consumer motivation and decision strategies differ
between products that differ in their level of importance or
interest that they entail for the consumer; and
How marketers can adapt and improve their marketing
campaigns and marketing strategies to more effectively reach
the consumer.
One "official" definition of consumer behavior is "The study of
individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences,
or ideas to satisfy needs and the impacts that these processes have
on the consumer and society."
Information Search and Decision Making
Problem Recognition. One model of consumer decision making
involves several steps. The first one is problem recognition—you
realize that something is not as it should be. Perhaps, for example,
your car is getting more difficult to start and is not accelerating well.
The second step is information search—what are some alternative
ways of solving the problem? You might buy a new car, buy a used
car, take your car in for repair, ride the bus, ride a taxi, or ride a
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skateboard to work. The third step involves evaluation of
alternatives. A skateboard is inexpensive, but may be ill-suited for
long distances and for rainy days. Finally, we have the purchase
stage, and sometimes a post-purchase stage (e.g., you return a
product to the store because you did not find it satisfactory). In
reality, people may go back and forth between the stages. For
example, a person may resume alternative identification during while
evaluating already known alternatives.
Consumer involvement will tend to vary dramatically depending on
the type of product. In general, consumer involvement will be higher
for products that are very expensive (e.g., a home, a car) or are highly
significant in the consumer’s life in some other way (e.g., a word
processing program or acne medication).
It is important to consider the consumer’s motivation for buying
products. To achieve this goal, we can use the Means-End chain,
wherein we consider a logical progression of consequences of
product use that eventually lead to desired end benefit. Thus, for
example, a consumer may see that a car has a large engine, leading
to fast acceleration, leading to a feeling of performance, leading to a
feeling of power, which ultimately improves the consumer’s self-
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esteem. A handgun may aim bullets with precision, which enables
the user to kill an intruder, which means that the intruder will not be
able to harm the consumer’s family, which achieves the desired end-
state of security. In advertising, it is important to portray the desired
end-states. Focusing on the large motor will do less good than
portraying a successful person driving the car.
Information search and decision making. Consumers engage in
both internal and external information search.
Internal search involves the consumer identifying alternatives from his
or her memory. For certain low involvement products, it is very
important that marketing programs achieve “top of mind” awareness.
For example, few people will search the Yellow Pages for fast food
restaurants; thus, the consumer must be able to retrieve one’s
restaurant from memory before it will be considered. For high
involvement products, consumers are more likely to use an external
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search. Before buying a car, for example, the consumer may ask
friends’ opinions, read reviews in Consumer Reports, consult several
web sites, and visit several dealerships. Thus, firms that make
products that are selected predominantly through external search
must invest in having information available to the consumer in need—
e.g., through brochures, web sites, or news coverage.
A compensatory decision involves the consumer “trading off” good
and bad attributes of a product. For example, a car may have a low
price and good gas mileage but slow acceleration. If the price is
sufficiently inexpensive and gas efficient, the consumer may then
select it over a car with better acceleration that costs more and uses
more gas. Occasionally, a decision will involve a non-compensatory
strategy. For example, a parent may reject all soft drinks that contain
artificial sweeteners. Here, other good features such as taste and
low calories cannot overcome this one “non-negotiable” attribute.
The amount of effort a consumer puts into searching depends on a
number of factors such as the market (how many competitors are
there, and how great are differences between brands expected to
be?), product characteristics (how important is this product? How
complex is the product? How obvious are indications of quality?),
consumer characteristics (how interested is a consumer, generally, in
analyzing product characteristics and making the best possible
deal?), and situational characteristics (as previously discussed).
Two interesting issues in decisions are:
Variety seeking (where consumers seek to try new brands not
because these brands are expected to be “better” in any way,
but rather because the consumer wants a “change of pace,”
and
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“Impulse” purchases—unplanned buys. This represents a
somewhat “fuzzy” group. For example, a shopper may plan to
buy vegetables but only decide in the store to actually buy
broccoli and corn. Alternatively, a person may buy an item
which is currently on sale, or one that he or she remembers
that is needed only once inside the store.
A number of factors involve consumer choices. In some cases,
consumers will be more motivated. For example, one may be more
careful choosing a gift for an in-law than when buying the same thing
for one self. Some consumers are also more motivated to
comparison shop for the best prices, while others are more
convenience oriented. Personality impacts decisions. Some like
variety more than others, and some are more receptive to stimulation
and excitement in trying new stores. Perception influences
decisions. Some people, for example, can taste the difference
between generic and name brand foods while many cannot.
Selective perception occurs when a person is paying attention only to
information of interest. For example, when looking for a new car, the
consumer may pay more attention to car ads than when this is not in
the horizon. Some consumers are put off by perceived risk. Thus,
many marketers offer a money back guarantee. Consumers will tend
to change their behavior through learning—e.g., they will avoid
restaurants they have found to be crowded and will settle on brands
that best meet their tastes. Consumers differ in the values they hold
(e.g., some people are more committed to recycling than others who
will not want to go through the hassle). We will consider the issue of
lifestyle under segmentation.
Apart from all this car buying behavior is largely influence by friends
and family
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So family decision making is also important.So lets have a look on it
The Family Life Cycle. Individuals and families tend to go through a
"life cycle:" The simple life cycle goes from
For purposes of this discussion, a "couple" may either be married or
merely involve living together. The breakup of a non-marital
relationship involving cohabitation is similarly considered equivalent to
a divorce.
In real life, this situation is, of course, a bit more complicated. For
example, many couples undergo divorce. Then we have one of the
scenarios:
Single parenthood can result either from divorce or from the death of
one parent. Divorce usually entails a significant change in the relative
wealth of spouses. In some cases,
the non-custodial parent (usually
the father) will not pay the required
child support, and even if he or she
does, that still may not leave the
custodial parent and children as
well off as they were during the marriage. On the other hand, in some
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cases, some non-custodial parents will be called on to pay a large
part of their income in child support. This is particularly a problem
when the non-custodial parent remarries and has additional children
in the second (or subsequent marriages). In any event, divorce often
results in a large demand for:
Low cost furniture and household items
Time-saving goods and services
Divorced parents frequently remarry, or become involved in other
non-marital relationships; thus, we may see
Another variation involves
Here, the single parent who assumes responsibility for one or more
children may not form a relationship with the other parent of the child.
Integrating all the possibilities discussed, we get the following
depiction of the Family Life Cycle:
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Generally, there are two main themes in the Family Life Cycle,
subject to significant exceptions:
As a person gets older, he or she tends to advance in his or
her career and tends to get greater income (exceptions:
maternity leave, divorce, retirement).
Unfortunately, obligations also tend to increase with time (at
least until one’s mortgage has been paid off). Children and
paying for one’s house are two of the greatest expenses.
Note that although a single person may have a lower income than a
married couple, the single may be able to buy more discretionary
items.
Family Decision Making. Individual members of families often serve
different roles in decisions that ultimately draw on shared family
resources. Some individuals are information gatherers/holders, who
seek out information about products of relevance. These individuals
often have a great deal of power because they may selectively pass
on information that favors their chosen alternatives. Influencers do not
ultimately have the power decide between alternatives, but they may
make their wishes known by asking for specific products or causing
embarrassing situations if their demands are not met. The decision
maker(s) have the power to determine issues such as:
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Whether to buy;
Which product to buy (pick-up or passenger car?);
Which brand to buy;
Where to buy it; and
When to buy.
Note, however, that the role of the decision maker is separate from
that of the purchaser. From the point of view of the marketer, this
introduces some problems since the purchaser can be targeted by
point-of-purchase (POP) marketing efforts that cannot be aimed at the
decision maker. Also note that the distinction between the purchaser
and decision maker may be somewhat blurred:
The decision maker may specify what kind of product to buy,
but not which brand;
The purchaser may have to make a substitution if the desired
brand is not in stock;
The purchaser may disregard instructions (by error or
deliberately).
It should be noted that family decisions are often subject to a great
deal of conflict. The reality is that few families are wealthy enough to
avoid a strong tension between demands on the family’s resources.
Conflicting pressures are especially likely in families with children
and/or when only one spouse works outside the home. Note that
many decisions inherently come down to values, and that there is
frequently no "objective" way to arbitrate differences. One spouse
may believe that it is important to save for the children’s future; the
other may value spending now (on private schools and computer
equipment) to help prepare the children for the future. Who is right?
There is no clear answer here. The situation becomes even more
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complex when more parties—such as children or other relatives—are
involved.
Some family members may resort to various strategies to get their
way. One is bargaining—one member will give up something in return
for someone else. For example, the wife says that her husband can
take an expensive course in gourmet cooking if she can buy a new
pickup truck. Alternatively, a child may promise to walk it every day if
he or she can have a hippopotamus. Another strategy is reasoning—
trying to get the other person(s) to accept one’s view through logical
argumentation. Note that even when this is done with a sincere intent,
its potential is limited by legitimate differences in values illustrated
above. Also note that individuals may simply try to "wear down" the
other party by endless talking in the guise of reasoning (this is a case
of negative reinforcement as we will see subsequently). Various
manipulative strategies may also be used. One is impression
management, where one tries to make one’s side look good (e.g.,
argue that a new TV will help the children see educational TV when it
is really mostly wanted to see sports programming, or argue that all
"decent families make a contribution to the church"). Authority
involves asserting one’s "right" to make a decision (as the "man of the
house," the mother of the children, or the one who makes the most
money). Emotion involves making an emotional display to get one’s
way (e.g., a man cries if his wife will not let him buy a new rap album).
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55..AANALYSISNALYSIS &&
INTERPRETATIOINTERPRETATIO NN
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Interpretation
Objective of the study : Consumer buying behavior towards small & medium car segment
For this research project ,I choose the questionnaire as research tool and take 50 participants who either willing to buy a car or having a car in small and middle segment. So the findings are as follows
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Q. 1 Do you use cars?
Interpretation;-Among 50 participants,84% respondents are currently having car .Through we can find out the potential market for car manufacturing companies
Q.2 Which car do you use?
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Interpretation:-Among 84% respondents who having his own car
43% participants are having Maruti, 29% are owning Hyundai, 19% are having Tata, 7% are owing Gm and rest are the customer of Honda
Motors
Q.3 Is the present car up to your expectations?
Interpretation:- Approx 79% participants are satisfied with their current
car i.e. their expectation are fulfilled by the car and rest are unsatisfied with their car performance
Some factor like mileage ,performance and easy servicing fulfill their expectation
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Q. 4 Are you planning to buy a new car in the near future?
Interpretation:-Every person wants to buy a car for himself or for his family. My research is focus on middle income prospects and thus
74% respondents are planning to buy a new car 26% respondents are not willing to buy new car in near
future
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Q. 5 Which brand would you prefer?
Interpretation:- Among 50 participants 54%of respondents prefer to buy a car of Maruti 30% participants like to purchase a car of Hyundai 20% respondants prefer TATA brand (Research is
conducted before the launching of nano ) 12% and 4 % are preferring ratio for respectively GM cars
and Honda cars
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Q. 6 Why would you prefer the above mentioned car?
Interpretation:-The reason for the preference, among 50 respondents
38% preferred mileage follow by looks and style as 26% Comfort is taking third place by 24% followed by service
and spares
Q.8. How frequently do you change your car? Why?
Interpretation:-Generally middle class respondents never echange their car so frequently so far. They will change their car
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after more then two year or above but the reason behind the changing the car are as follows
Almost 54% participants said tat they fed up with their car Near 36% respondents wants to change their car due to
advance technology Approx 8% change their car due to fashion & trend \
Q.9 What does affects your buying behavior generally while selecting any car in small & medium segment?
Interpretation:-Middle class segment generally influenced by family &friends followed by brand as
58% respondents influenced by family and friends 26 % participants chane their decision due to brand
because they are brand conscious Style & features are influenced only 6%
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6. Facts & finding
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Findings :-
In present Maruti is leading in small & medium car segment followed by Hyundai
Existing customer are satisfied with their present car performance like mileage ,servicing etc
In current scenario Maruti will be market leader followed by Hyundai(This research is conducted before launching TATA Nano)
Middle class segment like to buy any brand due to mileage followed by looks & style
They change their cars after two years or more, due to fed up with car and for new advance technology
They highly influenced by family and friends while making purchase
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7.7.CONCLUSIONCONCLUSION
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From the analysis of the responses received from the
customers in Jaipur, overall findings show that Maruti
Suzukij is the most prefered brand among the participants.
Maruti Suzuki and Hyundai,Tata Motors are the biggest competitor in the small & madium car market..
Among the five attributes ( which we considered important for customers’ purchasing decision ) customers gave highest consideration to mileage followed by the looks and style. Other attributes like comfort, service and spares were considered later.
Most middle class person prefer Maruti Suzuki in this
segment and usually they use car for their transport.
Servicemen still would like to go for small & medium car
but with mileage with the first considerable thing followed
by looks and style and power.
Study shows that middle class segment highly influenced
by family & friends while purchasing the car. So
companies should advertise their product targeted to
families
Graduly Hyundai & TATA captured the market of Maruti
due to their new launching in small cars like TATA
nanoetc.
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132
88..RECOMMENDRECOMMEND
ATIONATION
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9.9. A APPENDIXPPENDIX
Questionnaire
Objective: Consumer buying behavior towards small & medium car segmentQ. 1 Do you use cars?
o Yeso No
Q.2 Which car do you use? ………………………………………………
Company Maruti Honda GM TATA HyundaiModel
Q.3 Is the present car up to your expectations? o Yeso No
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Elaborate (Why Yes / Why No) __________________________________________________________________________________________________________________________________________Q. 4 Are you planning to buy a new car in the near future?
o Yeso No
Q. 5 Which brand would you prefer?
o Marutio Hondao GMo TATAo Hyundai
If other, then please specify…………………………..
Q. 6 Why would you prefer the above mentioned car?o Mileage o Looks and style o Comfort o Service and spares o Other
If other, then please specify…………………………..
Q.8. How frequently do you change your car? Why?o 6-12 Monthso Up to 2 years o More than 2 yearo Till the life of the bike
Reasons
Status Fashion & Trend
Advance Technology
Fed up & Reseal
Other
If other, then please specify…………………………..
o Family or Friendso Advertisemento Brand
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o Style & Featureso Technical Advancement o Other Issue
If other, then please specify…………………………..
Personal Information:
Name :
Occupation :
Age : 1. 26-35 2. 36-45 3. Above 45
Date :Signature
Place :
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11. BIBLIOGRAPHYBIBLIOGRAPHY
Bibliography
BOOKS
C.R Kothari: Research Methodology
NEWSPAPERS
Economic Times. Business Times. Business Standard
WEBSTIES
o http://www.tatamoters.co.in o http://www.maruti.co.in.