my final sip report.pdf

8/10/2019 my final sip report.pdf

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A

PROJECT REPORT ON

Consumer s buying behaviour on mid segment car

Submitted by:

Nirbhay Challa (138070592026)

The SIP project report submitted

InPartial fulfilment of the requirement

For the Degree of

MASTER S OF BUSINESS ADMINISTRATION (MBA)

2 years Full Time Program of Gujarat Technological University

Submitted to:

Dr. Viral Bhatt

SAL Institute of Management

Ahmedabad


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SAL Institute Of Management

Certificate

This to certify that the project report titled Consumers buying behaviour on mid

segment car is the Bonafide work of Nirbhay Challa (138070592026) who carried

out research under my supervision. I also certify further, that to the best of my

knowledge the work reported herein does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier

occasion on this or any other candidate. The project report is done in the partial

fulfillment of the SIP of Masters of Business Administration at SAL INSTITUTE

OF MANAGEMENT acadameic Session June-July 2014.

Dr. Viral Bhatt

Principal / Director,

SAL INSTITUTE OF MANAGEMENT

Sign :


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Acknowledgement

We would like to thank our corporate guide Mr. AshutoshChaudhury, Head of west zone of for giving us an opportunity to do our Summer

Internship Programme at their esteemed organisation given us practical exposure. We

are also thankful to him for providing us support and guidance to his excellence

throughout our SIP and project.

We would like to thank our project guide Dr. Viral Bhatt

for acting as an enthusiast and expert mentor to our project. We are also thankful for providing us continuous directions, suggestions and guidance, it stands so important to

us that without which our project would be impossible. Apart from our project guide

we are also thankful to Prof. Viral Bhatt for providing valuable suggestions.


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Preface

Our institution has come forward and provided us opportunity towork on a concept which will be beneficial to gain more and more practicalknowledge. Our institute has provided good education facilities and motivation to usto emphasise activities for better future.

In this SIP project, we have taken a concept of advertisementimpact on customers regarding pizza outlets they visit. We have conducted a survey in

respect of this, where 200 respondents were part of it and their answers will be helpfulto make an analysis to study their views regarding different pizza advertisements theysee, listen and read on various mediums.

In this project we have tried to analyse various pizzaadvertisements impact on consumers and effectiveness of various mediums like TV,radio and different print media.

Certainly this analysis explores our abilities and strengths to its

fullest extent for the achievement of organization as well as personal goal.


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1. INTRODUCTION TOAUTOMOTIVE INDUSTRY

Terminology

The automotive industry designs, develops, manufactures, markets, and sells motor

vehicles, and is one of the Earth's most important economic sectors by revenue.

The term automotive industry usually does not include industries dedicated to

automobiles after delivery to the customer, such as repair shops and motor fuel filling

stations.

1.1 Global Automotive Industry

1.1.1History


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vehicle producer in the world, growing 16-18 per cent to sell around three million units

in the course of 2011-12.In 2009, India emerged as Asia's fourth largest exporter of

passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as

Asia's third largest exporter of passenger cars, behind Japan and South Korea beating

Thailand.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million

automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the

country the second fastest growing automobile market in the world. According to the

Society of Indian Automobile Manufacturers, annual vehicle sales are projected to

increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is

expected to top the world in car volumes with approximately 611 million vehicles on the

nation's roads.

The majority of India's car manufacturing industry is based around three clusters in the

south, west and north. The southern cluster near Chennai is the biggest with 40% of the

revenue share. The western hub near Maharashtra is 33% of the market. The northern

cluster is primarily Haryana with 32%.Chennai is also referred to as the "Detroit of India

"withthe India operations of Ford, Hyundai, Renault and Nissan headquartered in the city

and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the

country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster

where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan

corridor near Pune, Maharashtra is the western cluster with companies like Volkswagen,

Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat andForce Motorshaving assembly plants in the area. Aurangabad with Audi, Skoda and

Volkswagen also forms part of the western cluster. Another emerging cluster is in the

state of Gujarat with manufacturing facility of General Motors in Halol and Tata Nano at

Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in

Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota

are some of the other automotive manufacturing regions around the country.


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1.2.1HISTORY

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly,

but in very small numbers.Embryonic automotive industry emerged in India in the 1940s.

Mahindra & Mahindra was established by two brothers as a trading company in 1945,

and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The

company soon branched out into the manufacture of light commercial vehicles (LCVs)

and agricultural tractors.

Following the independence, in 1947, the Government of India and the private sector

launched efforts to create an automotive component manufacturing industry to supply tothe automobile industry. However, the growth was relatively slow in the 1950s and

1960s due to nationalization and the license raj which hampered the Indian private sector.

After 1970, the automotive industry started to grow, but the growth was mainly driven by

tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese

manufacturers entered the Indian market ultimately leading to the establishment of

MarutiUdyog. A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian

government chose Suzuki for its joint-venture to manufacture small cars. Following the

economic liberalization in 1991 and the gradual weakening of the license raj, a number

of Indian and multi-national car companies launched operations. Since then, automotive

component and automobile manufacturing growth has accelerated to meet domestic and

export demands.

Following economic liberalization in India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed

restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti

Suzuki and Mahindra and Mahindra, expanded their domestic and international

operations. India's robust economic growth led to the further expansion of its domestic

automobile market which has attracted significant India-specific investment bymultinational automobile manufacturers. In February 2009, monthly sales of passenger


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cars in India exceeded 100,000 units and have since grown rapidly to a record monthly

high of 182,992 units in October 2009.From 2003 to 2010, car sales in India have

progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car

in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is

unlikely to stop in the coming decade. Congestion of Indian roads, more than market

demand, will likely be the limiting factor.

SIAM is the apex industry body representing all the vehicle manufacturers, home-grown

and international, in India

1.2.2AUTOMOTIVE INDUSTRY DEFINITION INDIA

This class consists of units mainly engaged in manufacturing motor vehicles or motor

vehicle engines.

1. The primary activities of this industry are:

I. Motor cars manufacturing,

II. Motor vehicle engine manufacturing.

2. The major products and services in this industry are:

I. Passenger motor vehicle manufacturing segment (Passenger Cars, Utility

Vehicles &Multi-Purpose Vehicles),

II. Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles),

III. Two Wheelers Three Wheelers.

1.2.3Supply Chain of Automobile Industry

The supply chain of automotive industry in India is very similar to the supply chain of

the automotive industry in Europe and America. The orders of the industry arise from the

bottom of the supply chain i. e., from the consumers and go through the automakers and

climbs up until the third tier suppliers. However, the products, as channeled in every


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traditional automotive industry, flow from the top of the supply chain to reach the

consumers. Automakers in India are the key to the supply chain and are responsible for

the products and innovation in the industry.

The description and the role of each of the contributors to the supply chain are discussed

below.

Third Tier Suppliers : These companies provide basic products like rubber, glass, steel,

plastic and aluminum to the second tier suppliers.

Second Tier Suppliers : These companies design vehicle systems or bodies for First Tier

Suppliers and Original Equipment Manufacturers (OEMs). They work on designs

provided by the first tier suppliers or OEMs. They also provide engineering resources for

detailed designs. Some of their services may include welding, fabrication, shearing,

bending etc.

First Tier Suppliers : These companies provide major systems directly to assemblers.

These companies have global coverage to follow their customers to various locations

around the world. They design and innovate to provide "black-box" solutions for therequirements of their customers. Black-box solutions are solutions created by suppliers

using their own technology to meet the performance and interface requirements set by

assemblers.

First tier suppliers are responsible not only for the assembly of parts into complete units

like dashboard, brakes-axle-suspension, seats, or cockpit but also for the management of

second-tier suppliers.

Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs):

After researching consumers' wants and needs, automakers begin designing models

which are tailored to consumers' demands. The design process normally takes five years.


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These companies have manufacturing units where engines are manufactured and parts

supplied by first tier suppliers and second tier suppliers are assembled. Automakers are

the key to the supply chain of the automotive industry. Examples of these companies are

Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and

branding are the main focus of these companies.

Dealers : Once the vehicles are ready they are shipped to the regional branch and from

there, to the authorized dealers of the companies. The dealers then sell the vehicles to the

end customers.

Parts and Accessory : These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers.

Service Providers : Some of the services to the customers include servicing of vehicles,

repairing parts, or financing of vehicles. Many dealers provide these services but,

customers can also choose to go to independent service providers.

1.2.4 EXPORTS

India s automobile exports have grown consistently and reached $4.5 billion in 2009,

with United Kingdom being India s largest export mark et followed by Italy, Germany,

Netherlands and South Africa.India s automobile exp orts are expected to cross $12

billion by 2014.

According to New York Times, India s strong engineering base and expertise in the

manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of

manufacturing facilities of several automobile companies like Hyundai Motors, Nissan,

Toyota, Volkswagen and Suzuki.


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In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors

plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly,

General Motors announced its plans to export about 50,000 cars manufactured in India

by 2011.

In September 2009, Ford Motors announced its plans to set up a plant in India with an

annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both

for the Indian market and for export. The company said that the plant was a part of its

plan to make India the hub for its global production business.Fiat Motors also announced

that it would source more than US$1 billion worth auto components from India.

In July 2010, The Economic Times reported that PSA Peugeot Citron was planning to

re-enter the Indian market and open a production plant in Andhra Pradesh with an annual

capacity of 100,000 vehicles, investing EU R 700M in the operation. PSA s intention to

utilize this production facility for export purposes however remains unclear as of

December 2010.

In 2009 India (0.23m) surpassed China (0.16m) as Asi a s fourth largest exporter of cars

after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreign carmakers

100% ownership of factories in India, which China does not allow.

In recent years, India has emerged as a leading center for the manufacture of small cars.

Hyundai, the biggest exporter from the country, now ships more than 250,000 cars

annually from India. Apart from shipments to its parent Suzuki, Maruti Suzuki also

manufactures small cars for Nissan, which sells them in Europe. Nissan will also export

small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles

to Asian and African markets, and is in preparation to launch electric vehicles in Europe

in 2010. The firm is also planning to launch an electric version of its low-cost car Nano


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1.3.1 Formation: LOGO

Shape of the Nissan Logo:

The Nissan logo has faced several changes over the years. After taking over DAT

motors, Nissan adopted a slightly modified version of the corporate logo of Datsun,

which consisted of two basic geometric shapes; a circle in red and a rectangle in blue.

The company name Nissan was placed over the rectangle in a rounded yet simple

typeface.

The current version of the chrome-colored Nissan logo, an appreciable rework of the old

emblem, was introduced in 2001.

Color of the Nissan Logo:

The silver color in the Nissan logo represents creativity, perfection, modernism and

sophistication of the company s products.

Font of the Nissan Logo:

The Nissan logo features a custom designed typeface

1.3.2 Nissan India

1.3.2.1 History


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Nissan's footprint in India has been growing steadily since its inception in 2005. Marked

by an impressive rise in sales, award-winning quality from locally-built products, an

expanding range of innovative cars and a rapidly evolving dealer network the growth

underlines the strategic importance of India to Nissan.

Together with its global Alliance partner Renault, Nissan has made a long-term and

large-scale 45 Mn INR investment commitment in a manufacturing plant at Oragadam,

Chennai. The Alliance has also invested in a state-of the-art global R&D center with

more than 2000 engineers to support product innovation and customization. NMIPL has

appointed Hover Automotive India (HAI) as their sole distributor for India to handle

sales and marketing, dealer development, customer relationship management and after

sales in India.

Guided by its global Brand commitment "Innovation and Excitement for Everyone"

Nissan delivers cutting-edge technology, Innovative design and a rewarding experience

to all its customers. In India, Nissan has been constantly expanding innovative and

exciting product offerings across hatchback, sports car, SUV and sedan segments. Today,

Nissan has strongly positioned three locally produced models premium hatchback

Micra, entry level sedan Sunny and Urban Class Utility Vehicle Evalia. Other existing

range of products include the X-Trail (SUV model), the Teana (luxury Sedan) and 370Z

(iconic sports car) all three imported from Japan as CBU (completely built units).

NMIPL also commenced exports in September 2010 to more than 100 countries

including Europe, Middle East and Africa.

In line with its global philosophy of corporate sustainability, Nissan India is

demonstrating its corporate commitment through various sustainable programs including

safety campaigns and rehabilitation projects. Nissan has constructed residential homes

for relocated families from the construction site, local Police Station and a fire service

station in the Oragadam village. Nissan has also partnered with Habitat for Humanity

for providing shelter to various families by constructing homes for the socially and

economically less fortunate section of the society.

India is a key growth market for Nissan. The company continues its quest to optimize

product development and deliver highly innovative technology to the India market and its

growing customer base.


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1.3.2.2 Manufacturing Fascilities

NMIPL's manufacturing plant in Chennai can manufacture 200,000 vehicles per annum.

The Chennai Plant has an additional 200,000 vehicles per annum capacity exclusively for

French car maker Renault s Indian arm Renault India Private Limited. The plant's

combined capacity is 400,000 vehicles per annum.

The plant in Oragadam with an investment of 45 billion (US$770 million) covers an

area of 650 acres (2.6 km 2). It will manufacture the Nissan Micra for the Indian and

European market, besides various other models for the Indian market

1.3.2.3 sales and service network

NMIPL has appointed Hover Automotive India for the Sales, Service, Parts, Marketing

& Dealer Development functions for Nissan vehicles in India. Nissan currently has 40

dealerships across 39 cities in 17 states and 1 Union Territory of India

1.3.2.4 sales performance

In the year 2007, NMIPL recorded sales of 533 vehicles. Nissan Motor India has sold

more than 13,000 units of its flagship model Micra since sales began in July 2010The company sold 37,000 vehicles in 2012-13, and is targeting sales of 100,000 vehicles

this year.It exported 130,000 units in 2012-13. And, it hopes to maintain exports this

fiscal.

Addressing a media round-table, Kenichiro Yomura, President, India operations, and MD

& CEO, Nissan Motor India Pvt. Ltd., said, We should have sold more vehicles in

India.

Nissan is targeting a 10 per cent market share in India by 2015-16. Towards this end, the

company is significantly ramping up its dealer network from 95 in 2012-13 to 145 in

2014-14. It has revived the Datsun brand under which it will sell economy segment cars.

Nissan will launch the first Datsun product and two new models and two refresh models

this fiscal.
http://en.wikipedia.org/wiki/Indian_rupee


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We hope to meet with success with every model, and there are good opportunities in the

sports utility vehicle (SUV) segment, Mr. Yomura said. Datsun is not a cheaper

version of Nissan but is being built as a brand for this market, he added. Mr. Yomura

said the annual capacity of the unit was 400,000 units. It can be raised to 480,000 units,

and we will consider it in the future. He said the company was trying to localise

production. Excluding engines, we have 90 -95 per cent localisation. We are unlikely to

localise engines soon but Datsun branded cars will have higher localisation.

1.3.2.4 Production sites worldwide

Japan

Oppama, Yokosuka, Kanagawa (Oppama Plant & Research Center) Kaminokawa, Tochigi (Tochigi Plant) Kanda, Fukuoka (Nissan Motor Kyushu & Nissan Shatai Kyushu Plant) Kanagawa-ku, Yokohama, Kanagawa (Yokohama Plant) Iwaki, Fukushima (Iwaki Plant) Hiratsuka, Kanagawa (Nissan Shatai Shonan Plant) Nagoya, Aichi (Aichi Machine Industry Atsuta & Eitoku Plants) Matsusaka, Mie (Aichi Machine Industry Matsusaka Plant) Tsu, Mie (Aichi Machine Industry Tsu Plant) Uji, Kyoto (Auto Works Kyoto) Ageo, Saitama (Nissan Diesel Motor, currently owned by the Volvo Group) Samukawa, Kanagawa (Nissan Kohki) Zama, Kanagawa (Assembly lines in the Zama Plant were closed in 1995,

currently Global Production Engineering Center and storage unit for its historic

models. Automotive Energy Supply Corporation (AESC), a joint-venture between

Nissan and NEC, produces lithium-ion batteries in Zama.)

India

Oragadam, Chennai

Brazil


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So Jos dos Pinhais, Paran (Renault-Nissan plant) Resende, Rio de Janeiro (Under construction)

Indonesia

Cikampek, West Java

Malaysia

Segambut, Kuala Lumpur Serendah, Selangor

Mexico

Aguascalientes, Aguascalientes Cuernavaca, Morelos

Morocco

Tangier, Tangier Med port (Under construction, Renault-Nissan plant)

Egypt

6th of October City, Giza Governorate

Philippines

Santa Rosa City, Laguna

South Africa

Rosslyn, Pretoria, Gauteng

Spain

Barcelona

Thailand


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Bangna, Samutprakarn

Republic of China

Taipei, Taiwan

United Kingdom

Washington, Sunderland, North East England

United States

Smyrna, Tennessee Canton, Mississippi Decherd, Tennessee

Russia

St. Petersburg, Russia

1.3.2.5 Chennai Plant Key Figures

oragadam is in the State of tamilnadu, in the south of India, and has a population of over

one million. The Nissan-renault India Private Limited plant has a total workforce of

1,200 including around 60 working on the production of Nissan-renault models and in

related areas (as at: December 31, 2010).

Chennai will play a strategic role in Nissan s growth strategy globally

Site Belonging to Nissan-Renault India

private limited

Nissan Production Start July 2010

Employees

Models Nissan Micra, Nissan Sunny, Nissan

Evalia
http://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Taiwan


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Production(2012) 31,300 units

1.3.2.6

MarketingSHIFT_ campaign

In 2002, Nissan introduced the SHIFT_ campaign as a replacement of the DRIVEN

tagline, with focus on two words that would define it the Nissan brand globally: BOLD

and THOUGHTFUL.

In 2006, TBWA\Chiat\Day unveiled The Next Generation SHIFT_2.0 campaign, which

featured a mix of traditional and non-traditional media. TV, print and out-of-home

placements generate awareness for the five new models (Quest, followed by Maxima,

Versa, Sentra and Altima) and showcase key technologies, while the Internet provides

the central hub for deeper product information. The updated campaign was directed by

TBWA Chiat Day of Playa del Rey, California, with additional support provided by

TEQUILA, The Designory and OMD. Early commercials included 'The Roads TV'.

Justin Spencer worked for Tequila Digital TBWA to design and direct the Nissan Shift

Brand Campaign for the Australian market

Innovation campaign

In 2010, Nissan introduced the Innovation campaign as a replacement of the SHIFT_

campaign, created by the Los Angeles office of TBWA/Chiat/Day, part of the TBWA

Worldwide unit of the Omnicom Group. One of the first commercial under the

Innovation campaign was used in the Nissan LEAF commercial with slogan 'Innovation

for all'. Other changes include the addition of a sound at the end of each commercial,

meant to symbolize the Nissan brand; and a new voice-over announcer for thecommercials, the actor Robert Downey Jr

WHAT IF_ campaign

The WHAT IF_ campaign was produced via an advertising competition (with American

Advertising Federation) that had a goal to get ideas from college students from all over

the nation and to hear their ideas on how to reach multi-cultural audience in the age range

of 18-29, since the SHIFT_ campaign had not reached such audience.


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The campaign started in April 2012 at Japan's Narita and Osaka airports, with the first ad

under the campaign being a 2014 Nissan GT-R featuring Usain Bolt unveiled on 2012-

06-01 at major airports around the globe (developed by TBWA).

A 2014 Nissan GT-R sign featuring double-size Usain Bolt was unveiled in Dubaiinternational airport, and was recognized Guinness World Records as world's largest

illuminated advertising sign (indoors) (28.0m in length and 6.2m in height).

WHYBIN\TBWA produced a 45-second TV commercial for New Zealand market that is

part of the WHAT IF_ campaign, featuring Nissan LEAF, Nissan GT-R, Nissan Qashqai,

Nissan X-Trail, but also used the SHIFT_ slogan.Australian version of the ad lasted 30

seconds

1.3.2.7 Nissan Technology

Quick Comfort Seat Heater

A seat that heats up fast and stays warm, combating fatigue and relaxing you

The seat optimizes the place and temperature control according to the time after the

heater activates. It reduces the time it takes until you feel warm and maintains comforting

warmth for longer. As blood circulation improves, fatigue when driving is minimized,

relaxing drivers in the car .

Xtronic CVT

CVT reduces emissions, provides "driving pleasure"

CVT (Continuously Variable Transmission) is a system with seamless, stepless gear

transmission. Early on Nissan understood the merits of CVT, low-fuel consumption and

seamless acceleration, developing and adopting the technology for its vehicles.

Extending the attributes of the efficient CVT even further, XTRONIC CVT now offers

powerful acceleration performance that is also a pleasure to drive.

SRS Airbag System

Nissan has vigorously developed a variety of safety technologies to help protect

occupants in side collisions. Typical examples include the high-strength Zone Body

construction, SRS side airbag systems for the driver and front passenger (also available


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in the rear seat on some models) and interior trim materials with high energy-absorbing

capabilities. As a further measure, Nissan is continually expanding the application of

SRS curtain airbag systems to help minimize head and neck injuries in side collisions

Low Friction SeatBelt

A low-friction seatbelt that feels light when being pulled out and with little feel of

tightness when being worn was developed by softening the webbing (sash portion on

seatbelts). This helps promote wearing seatbelts by increasing comfort during use

MR16DDT Engine

Powerful engine with superb fuel efficiency

The MR6DDT is an engine with superb performance and an environmentally conscious

design. It employs a turbocharger and utilizes various controls to combine engine

performance equivalent to a 2.5L engine while being 1.6L class, and also excellent fuel

efficiency

Smart Auto Headlights

This system automatically turns on headlights and position lights. Since it removes thenecessity to manually turn lights on or off, a driver does not need to operate a switch

when entering an underground car park or tunnel. It is aligned with the ignition key,

meaning the lights will automatically go out when the engine is turned off. This protects

against forgetting to turn off lights after parking

Moving Object Detection (MOD)

Adding to the capabilities of the Around View Monitor, which shows the driver a virtualvideo image of the area surrounding the vehicle, this new function helps the driver avoid

a collision by providing visual and audible warnings if the system detects moving objects

within the displayed image in situations such as pulling in or out of a parking space.

Around View Monitor with Parking Guide

The Around View Monitor is a system that displays a virtual birds-eye view of the

vehicle. For parking, the technology has been further enhanced to make it easy to


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progressively become larger with each successive generation. One of the four factories

which produce the Nissan Micra K13 is located in India.

Nissan Micra is available in India with four petrol and two diesel variants. The four

petrol variants of Nissan Micra are: Nissan Micra XE, Nissan Micra XE Plus, Nissan

Micra XL and Nissan Micra XV. All the four variants are powered by the 1.2 L, 1198 cc,

petrol engine with five-speed manual transmission that delivers 76 PS (56 kW; 75 hp) of

maximum power at 6000 rpm with 104 Nm (77 lbft) of maximum torque at 4000 rpm.

These variants are differed from each other by the interior comfort, luxury and safety

features. Notable feature includes a standard air bag across the range although ABS is

available only on the top variant.

Sunny

The Nissan Sunny is a compact car built by the Automaker Nissan from 1966 to 2004

and again since 2006. It was launched in 1966 as the Datsun 1000 and although

production in Japan ended in 2004, the name remains in use in the Chinese market. The

Indian-spec new Sunny was unveiled at the 2011 New Delhi Expo, continues to compete

with the likes of other entry-level sedans such as Toyota Etios and Honda Amaze in

2014.

Evalia

The Nissan NV200 is a light commercial vehicle produced by Nissan. It was first shown

as the NV200 Concept at the 2007 Tokyo Motor Show. It was launched in Japan as

Nissan NV200 Vanette on May 21, 2009.

The Evalia was launched in India on the 27th of September, 2012.This new MPV from

the stables of Nissan Motors is slotted in between the Maruti Suzuki Ertiga, which was

launched in India in the month of April and has managed to make a mark in this segment,

and the Toyota Innova, which is tagged as the bestselling MPV for a long time now.

Maruti Ertiga s highest selling point is its low price that has set the ball rolling for the

new compact MPV in the Indian car market

X-Trail


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The Nissan X-Trail is a compact crossover SUV produced by the Japanese automaker

Nissan since 2001. It was one of Nissan's first crossover SUVs and was released about

the same time as several other companies competing car-based compact SUVs including

the Suzuki Grand Vitara, Ford Escape and its Mazda Tribute sibling, the Hyundai

Tucson, Honda CR-V and the Toyota Fortuner.

Teana

The Teana was first introduced in late 2003 to the Japanese Domestic Market. It was

introduced a month later to other Asian markets like Singapore

Teana is an premium luxury sedan provided by Nissan in India. It was first launched in

2007 in India with two different type of engines and variants.

370Z

The Nissan 370Z (known as the Fairlady Z Z34 in Japan) is a sports car manufactured by

Nissan Motors. It was announced on October 29, 2008 and was first shown at an event in

Los Angeles ahead of the 2008 Greater LA Auto Show.

370Z is an premium Sports coupe provide by the Nissan in India. It was first launched in

2010 in India.370Z is assembled only on customers order.

1.3.3 SWOT

Strengths

Strong financial performance.

Nissan s revenue has been growing over the last few years from 7,517,277 billion yens in

2010 to 9,409,026 billion yens in 2012. Firm s net operating income and net profit

increased as well. Due to such strong financial performance, Nissan was able to achieve

at least temporary competitive advantage over its competitors.

Strategic partnerships.


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Appreciating yen exchange rate.

Most of Nissan s revenue comes from foreign countries. Appreciating yen exchange rate

against other currencies means lower profits for the company.

1.3.4 Porters Five Forces Analysis

Threat of Entrants: (Low threat)

For any Nissan competitor, there are significant barriers to entry, including finding and

sourcing suppliers to build various components, setting up manfucaturing operations, and

establishing a dealer network through which to sell cars.

Buyer Power: (Low Buyer power)

Buyers are pretty fragmented around the world, and new cars can only be sold through

authorized dealers, so buyers have relatively little power, though they obviously have

choices from competitors so they are not completely without power. As for service, Nissan

buyers have many choices so there is more power there.

Supplier Power: (Limited)

Nissan, like all car companies, probably has some switching costs and transaction costs to

switch suppliers, so the suppliers probably have some negotiating power, but it's probably

limited.

Threat of Substitutes: (Medium)

Nissan certainly works to build brand and there are Nissan loyalists, but there are many

substitutes in the market for buyers, like Toyota, Honda, GM, etc. as well as other modes

of transportation. I would say it's medium to moderately high.

Rivalry: (High)


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Car buyers have a lot of choices in the market within all segments (luxury, economy,

SUV's, etc.) and the switching costs are pretty low, unless there's no dealership nearby. I

would say the degree of rivalry in this industry is high, depending on the specific

marketplace/region.

CHAPTER-2

INTRODUCTION TO THE TOPIC

2.1 CONSUMER DECISION PROCESS

At present, the consumer decision process model has been well accepted. This model of

purchase as decision process is explained in more detail by Thorelliet al (1975).Thorellis

decision model illustrates the type and shows there are a series of semi discrete steps

which take place over time for the buyers and purchasers.

Predispositions (Before Purchase):

According to Thorelli et al (1975), the prospective buyer possesses a certain stock

ofcognitive content, including his own personality or self-concept, attitudes andopinions

both in general and on specific products, and stored information and pastexperience. Thisstock has been formed as a result of his interaction with hisenvironment over time, and it

will help determine the environment in which he placeshimself in the future as well as

influence his perceptions of that environment.

Product Need:

As a result of either cognitive activity or some environmental stimulus, the buyer

Recognizes a need which is capable of being satisfied by a product or service. Inotherwords, the need is often triggered by internal or external stimuli. Some authors


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alsotake this need recognition stage as the entry point. Chaston (2001) argues that

thepotential consumer will not implement any of the other steps in the buying

processuntil need recognition has happened.

External Search:

Thorelli et al (1975) describe that this stage represents all search of the

externalenvironment for alternative solutions as well as for information helpful in

evaluatingthese alternatives. The search for information occurs on an internal and

external basis(Gilbert, 1999). The internal search for information from previous

experience mightbe relevant to the present purchase situation. The extent and nature of

external searchfor information likely in any given purchase has been the subject of a

great deal ofresearch. When searching for information in the external environment (e.g.,

friendsand family), consumers focus on those relevant attributes that are available and

arediagnostic (Dick et al., 1990)

Evaluation of Alternatives:

This stage consists of the physical and cognitive activities involved in

comparingalternatives on the basis of information gathered from external search above.According to Kotler (2000), the consumer arrives at attitudes toward the variousbrands

through an attribute evaluation procedure and most buyers consider severalattributes in

their purchase decision. These attributes used by consumers forevaluation are also called

choice criteria. Jobber (2001) has made a good summary ofthese choice criteria. In fact,

consumers attempt to optimize the trade-off betweenproduct benefits, product costs, the

desired personal utilities and other variables.

Purchase Activity:

Purchase activity involves the actual final decision and physical activities involved

inmaking (or not making) the purchase. This stage includes the actual transaction.

However, as suggested by Kotler (2000), perceived risks of a consumer can

heavilyinfluence his decision to modify, postpone, or avoid a purchase decision.

Therefore itis necessary for marketers to understand factors that might provoke perceived

risk inconsumers and work out solutions to reduce that.

Post Purchase Behavior:


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This step is concerned primarily with the buyers use of the product purchased.

Afterpurchasing the product, the consumer will experience some level of satisfaction

ordissatisfaction, which will influence a consumerssubsequent behavior.

Dissatisfiedconsumers may abandon or return the product, they may even complain to

the othergroup (Kotler, 2000). It is clear that satisfactions and dissatisfactions created

byproduct performance will be important determinants of attitudes and informationstored

as inputs to future purchase decisions.

Predispositions (After Purchase and Use):

This stage suggests that following the purchase process; the buyer (or non-buyer) isleft

with cognitive content, which may be quite different from that which was presentat the

beginning of the process. Buyers may change their attitudes, information andexperience

due to reasons of time and events. All of these may serve to changesubstantially the

nature of the decision process for future purchases of the same type.

Chapter-3

Literature Review

RESEARCH INTO MID-SEGMENT AUTOMOBILES 24In the past years the research into customer perception and behaviour in the

automobile hasbeen driven by American researchers (Haubl, 1996; Iacobucci, et al. 1996;

McCarthy et al., 1992; Purohit , 1992; Sullivan, 1998; Rosecky and King, 1996). Very

few authors and writings have investigated customer perceptions of luxury cars (Rosecky

and King, 1996) and much of this work is focused on consumer loyalty and brand

switching (Iacobucci, et al. 1996; Lapersonneet al., 1995;McCarthy et al., 1992; Purohit,

1992).


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The major research focus has been on low priced segment car ranges rather than the

luxury segment in which choice between brand concept image and individual choice of

potential buyers play a great role. Therefore, they have neglected customers individ ual

differences (especially attitudes and specificity ) that provide different perceptions

towards the automobiles or their marquees, which are important in purchase decision

making (Jahoda, 1966; Festinger, 1964; Rosecky and King, 1996; Markin, 1969). These

research carry the beliefs that automobiles customers merely strive for product -related

attributes (Keller, 1993), in otherwords, functional, tangible, visible characteristics

(Kapferer, 1997), or utilitarian needs (Havlena and Holbrook, 198 6; McClelland,

1951).

This agrees in line with Lancaster s theory (1966) that demanders buy groups of featuresrather than products, their opinions regarding the similarity of products must also be

determined by features. Research into purchasing patterns, however, indicates that it is

not the objective features (tangible or technical attributes) themselves, but rather the

subjective perception of these that determines consumer choice (Bauer and Herrmann,

1995; McFadden, 1986; Urban and Hauser; 1980). There are differences between

business-to-business (fleet) buyers and retail (non-fleet or private) car buyers.

Business-to- business buyers are professionals and experts in terms of functional

benefits (Keller, 1993) of cars bought for employees. Thus, their consumption is

routine and functional . This may explain why it shows that significantly more

Mahindra are purchased as fleet cars (company cars) than Other SUV&MUV from.

While generally they have equal insurance cost, Mahindra s price is lower and it

possesses more powerful technical features: a larger engine, higher horse power, quicker

acceleration, and higher maximum speed, and therefore is perceived to offer better value

for money in the workplace.

In contrast, preferences of retail customers for other suv like duster, Scorpio exceed

Mahindra s and enable other suv&muv to achieve higher sales, despite the better offer

and technical characteristics of Mahindra. This is because retail customers are amateur

purchasers who spend their own money for non-routine consumption. Thus, they seek to

gain experiential or symbolic (Keller, 1993) benefits from the car brand instead. This

demonstrates that there exist differences in specificity among individual customers.

Specificity may depend largely on how bu yers discriminate, between essential and


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special need (Oliver, 1997: 54) in importance: in other words needs and wants. If some

buyers regard importance as meaning essential, then all requisite features of the cars,

such as maximum speed, acceleration rate, horse power, and engine size become very

important. On the other hand, if buyers perceive importance as a special need, then some

features may not be anticipated. For example, if the car buyer is only interested in the

country-of-origin of the brand (India in this case), then the technical characteristics will

be unimportant. When customers seek to purchase a product, they pay attention to

whether the product will satisfy basic needs and desires in their lives. Here, the fleet-car

customers have the basic needs (to choose a cost-effective car), and desires (to possess a

luxury car).The most reasonable choice is Maruti Suzuki SWIFT. However, most retail

customers have a more preferable attitude towards Hyundai I20. When having to select

among alternat ives, customer s are interested in differences across brands in the same

product segment and even models. Most luxury cars hold their marquees as a flagship. In

other words, the brand s power acts as significant entry barrier. To enhance the brand s

power, most luxury car marquees have stretched their brand upward or downward into a

new segment. Most marquees that usually have strong position of their car models on

mid-size and large luxury saloon segments will stretch their brand downward. For

example, Mercedes-Benz introduces A-Class, a small family car, and M-Class, a sport

utility vehicle following the successful S-Class and E-Class introduction. Rover

constantly emphasize their Rover Mini along with their mid-size 800 range. On the other

hand, car manufacturers who are not usually perceived to be in the Mid-segment will

attempt to stretch theirbrand upward. The strategy is the diversification into a sub-brand.

The most notable examples are the introductions of Lexus under Toyota and Infiniti

under Nissan which have been successful globally. At this point, the essential features

become unimportant because all brands are perceived to have these features to equivalent

degrees. This phenomenon insists that signifying product-related attributes alone canonly partially explain the sophistication of buying behaviour of Mid-Segment

automobiles customers.


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CONSUMER BEHAVIOUR OF MID-SEGMENT AUTOMOBILE CUSTOMER

Most current owners of Mid-segment cars tend to have purchased a car previously; the

customer has potentially developed an attitude toward it. Here, an attitude becomes an

evaluating judgment (desire or not desire) based on prior or present experience such as

previous satisfaction from dealers or products and services (after sales and warranty),

driving experience, and socio-economic status of customers. It is also possible that an

attitude can be developed based on prior information without experience, as when

consumers develop preferences or biases for or against brands based on the brands

images in the marketplace. This also depends largely on purchasing power of individual

customers. Customers may have a favourable attitude towards some manufacturer s cars,

but may lack the ability due to insufficient purchasing power or willingness to take buying action. On the other hand, lower (lower- priced) manufacturer s cars may be

neglected by customers who have high purchasing power (or over-purchasing power in

this sense). For example, most buyers (with high, medium, or low income) tend to have a

preferable at titude towards some manufacturers cars such as Honda, Nissan. The

difference is that customers with low to medium income may still also anticipate the

quality of smaller sized cars of manufacturers from the lower segments such as Fiat,

Ford, Maruti Suzuki, and Tata, as these cars are affordable to them. In other words, carsfrom lower segments have the meaning of reality to them.

The following variables were identified:

(1) Reliability

(2) Quality

(3) Durability

(4)Safety

(5) Security

(6) Performance

(7) Efficiency

(8) Technology


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(9) Handling

(10) Value

(11) Style

(12) Comfort

(13) Prestige

(14) Status

(15) Visual impact.

The first nine variables are in the objective category. The last six variables are in thesubjective category. These different attitudes are directly related to different types of

customers because cognition, feelings, and response dispositions of customers are

organized into a set of patterned emotional reactions (Markin, 1969). This may be due

to differences described as demographic, geographic, psychographic, or lifestyle.

Therefore, behaviour moves from personal buyer to different buyers in a given society.

Like other products, Mid-segment automobile marketers (manufacturers, companies,

dealers) also need to focus on who buys or type of customers to segment their cars. A

discussion of the segmentation of the consumers and the Mid-segment automobiles

follows.


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Chapter 4

Research Methodology

Title of the study

The study on CUSTOMERS BUYING BEHAVIOR FOR MID-SEGMENT CAR

Problem Statement

Will NIssan be able to increase its market sharevis-a-vis competitors?

Significance of the study

It is important to identify the Buying Behavior of the customers in the areas

where people are capable of buying a Mid-Segment car.

It is important for the study of competitor s market share & preferences of

customers for their second option.

Research Objectives

To study the various factors that influences the buying behavior of the customers.

To study the current scenario of the Mid-segment car market.

To know the options they have considered while buying their current car.

To know the future planning of the new car (Duration and Brand).

Scope of study


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The scope of study is limited to the Mid-Segment car owners of Ahmedabad, Surat,

Baroda and Rajkot in Gujarat in order to know their perspective regarding the buying

patterns in the Mid-Segment car market. The main focus is to know the consumer s

behavior for buying the Mid-Segment cars.

Data Collection

After identifying and defining the research problem and determining specific informationrequired solving the problem, the next step is to look for the type and source of data that

may yield the desired results. There are mainly two types of data that a research can

collect one is the primary data and the other is the secondary data.

SOURCES OF DATA

PRIMARY DATA

The primary data was collected through questionnaires. The questionnaire was framed

and survey was conducted for collecting the primary data for study and analysis.

SECONDARY DATA

It was collected from internal sources. The secondary data was collected on the basis of

organizational file, official records, newspapers, management books, preserved

informationin the company database and websites.

Questionnaire Design

Surveys was conducted, copy of the questionnaire is annexed at the end ofthe report.

Mid-Segment car users were surveyed in the form of structured interview.

Research Design


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A Research design specifies the methods and procedures for conducting a particular

study. It is a map / blue print to which the research is to be conducted. Descriptive

research design has been considered as a suitable methodology for present study and for

data analysis. Descriptive research , also known as statistical research , describes data

and characteristics about the population or phenomenon being studied. However, it does

not answer questions about eg: how/when/why the characteristics occurred, which is

done under analytic research. Surveys and interviewed each sample of the survey

individually. Causal Research was not selected because we are not studying cause and

effect relationship in our research was being instructed by management to describe the

characteristics of Mid-segment car customers and the areas of improvement

Sampling Design

The sampling design used was Convenience sampling, which is a non-probability

sampling method. The convenience factors were the availability and approachability of

the Respondents.

The samples

to

Total Samples

100


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Chapter 5

DATA ANALYSIS &

INTERPRTATION

5.1 Analysis Of Mid-Segment Car Users

Gender

Gender No.Of Respondents

Male 82

Female 18

male, 82

female, 18

Gender

male

female


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Interpretation

(1) From the above chart it is observed that 61% of the respondents are Graduates and

they are knowledgeable to consider value for the Mid-Segment brands.

(2) The 38% respondents come from the post graduation background, professionals and

highly educated i ndividuals like Doctor -MD, MBA's, and Masters in Poly- Chemistry

etc are included in it.

(3) The remaining 1% includes Secondary, Higher secondary and others category like

Diploma, Architectures etc

SecondaryH.Secondary, 1

Graduation, 61

Post.Grad, 38

Other

Qualification Of Customer

Secondary

H.Secondary

Graduation

Post.Grad

Other


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Profession

Particular No.Of Respondent

Service 70

Business 20

Student 8

Retired 2


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Interpretation

(1) The chart suggest that 20% of the respondent are into business sector.

(2) The remaining 70% are into the service sector.

(3) while the remaining 8% of the respondent are students who currently own car.

(4) There are 2% of respondent who are retired and own a car.

Age Group

Age group Slot No,of Respondent

=40 15

Service, 70

Business, 20

Student, 8Retired, 2

Profession

Service

Business

Student

Retired


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Interpretation

(1) The segmentation of the company s selling can be done with the help of this attribute

company can come to know their customer s age group and thus targeting them becomes

easy.

(2) Majority of Mid Segment car owners are between 19 to 25 years with 40% of total

response.

(3) The young guns within 26-30years of age group are fond of Mid-Segment Cars and

are near by 32% of the respondents

(4) The no of Respondent between the age30-40 is 13% because they are fond of shifting

the segment from mid-segment to luxury segment

(5) Higher age generation is having less interest in Mid-Segment cars; Because either

they have used it or their children are going to purchase the new one, hence the no of

respondent >=40 is 15% only.

=40, 15

Age Group

=40


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Income Group(P.A)

Income Group No.Of Respondent

=20lakh 5


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Interpretation

(1) The exact income level is difficult to estimate as it is one s personal view to disclose

it without biasness or not, respondents generally try to skipthis question. Thus the slots

are prepared to find out their incomelevel,without harming their point of view regarding

income.

(2) These are middle class customers with Normal income level to purchase a Mid-

Segment car majorly 79% of these people lay in =20 lakh group

Thus rich and normal standard of living people can afford these Mid-Segment brands.

=20 lakh, 5

Income Group(P.A)

=20 lakh


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2.Which Cars do you own?

Brands No.of

respondent

Maruti Suzuki 42

Nissan 1

Ford 4

Honda 18

Chevrolet 4

Other 25

Interpretation

From the survey and the above chart it has been analyzed that the samples posses the

following cars currently (%Value of the No. of respondent).

(1) Highest share is of Maruti Suzuki about 42%, Followed by other Market leader with

25%.

Maruti Suzuki, 42

Nissan, 1Ford, 4

Honda, 18

Chevrolet, 4

Other, 25

Present Cars Of Customers

Maruti Suzuki

Nissan

Ford

Honda

Chevrolet

Other

Other Include:

Hyundai, Tata, Fiat,Volkswagen Etc.


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(2) The third in the lead is the Successor of the current market Honda With 18% of share.

(3) The upcoming competitors in the Indian and Gujarat market are chevrolet 4% and

Ford 4%, the city Ahmedabad is also getting influenced by these well known brands.

Further studies would throw some light on this statement.

(4) It has been also found that many people are having multiple brands in their

ownership.

(5) Considerably other brands like Skoda, Hyundai, Toyota, Volkswagen, Tata, Fiat etc

which are in the market of Mid-Segment cars Are having their share of 25% which can

be considered a remarkable share.

(6) The rest of the 6% of respondent does not own any car yet.

(This study is based on 100 samples only, thus actual scenario of the market cannot be

estimated by this study)

3.Which Type Of Car do you own?

Types No.Of

respondentSedan 28

Hatchback 64

Sports 0

Suv & Muv 2

Other 0

Other Include:

Cross-over,Coupe, cabriolet,Wagon etc


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Interpretation

(1) The Above chart suggests that there are 28% of people having Sedan segment car, 2%

having SUV and MUV Segment cars.

(2) People with hatchback segment are 64%. Thus there are more hatchbacks in the

market, as it is the most preferred segment by the customer for mid-segment cars

(3) There were only 2% of respondent who were having an Suv or Muv type of Car

(4) There Were 0 respondent in the category of other type of vehicle.

(5) There were total 6% of respondent who were not having any car.

4. Usage of Car?

Usage No.Of respondent

Self 92

Driver 1

Mix of both 3

Sedan, 28

Hatchback, 64

Sports, 0Suv&Muv, 2 Other, 0

Type Of Car You Own

Sedan

Hatchback

Sports

Suv&Muv

Other


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Interpretation

(1) The study suggests that 92% of respondent have the Self usage of their car.

(2) while 3% of respondent are using for mix driving it means both the driver and by selfand only 1% people are using their cars through drivers only.

(3) There were 6% of respondent who were not owning an single car.

(4) As it is an Mid-segment category most of the respondent drive their car by

themselves only .

5. Which Of This Aspects made You Buy This Car?

Attributes No.Of

Respondent

Brand 67

Offer 8

Financial Scheme 6

Recommendation 9

Self, 92

Driver, 1 Mix Of both, 3

Usage Of Car

Self

Driver

Mix Of both

Others Include:

State of art

showroom,

looks of car,

Etc..


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By other

Other 5

Interpretation

(1) Customers are having perceived perception about the Brands; they built the image of

the Branded products by seeing it (Virtually and physically), hearing from others, as a

status symbol, as the world wide recognition and reputation of the brand.

(2) Thus 67% of respondents are Brand conscious and only the brand name influenced

their current choice.

(3) There are people who are attracted through offers and financial schemes; they are in

8% and 6% of the total respondent.

(4) There are people who purchased their car on recommendation by other. There were

9% of respondent who purchased car on others recommendation.

(5) There were only 5% of people who purchased car on the basis of other category

Brand, 67

Offer, 8

FinancialScheme, 6

Recommendationby other, 9 Other, 5

Current Cars Preferences Due to?

Brand

Offer

Financial Scheme

Recommendation byother

Other


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6. Which Type Of Advertisement influenced You?

Ad Types No.of

Respondent

Print Media 48

Events and

Promotion

16

Television AD 19

Online Media 3

Other 8

Interpretation

(1) The Chart suggest that the majority(48%) of the respondents are influenced throughPrint media, the medium could be New paper ads, Hoardings on the streets, Leaflets,

Print Media, 48

Events andPromotion, 16

Television AD, 19

Online Media, 3Other, 8

Advertisement Influence For Current Cars

Print Media

Events and Promotion

Television AD

Online Media

Other

Others Include:

Self awareness,showroom visit,auto show reviewsetc.


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Broachers etc. As the reach of these types of advertisement is more into domestic, sub

urbs and urban areas all together.

(2) Television ads capture only 19% of customers as it is launched on national level and

withdrawn very soon. These users are majority of working and studying profile thus time

factor does not allow them to view TV ads.

(3) Others and Online media combined Influence is of 11% customers.

(4) There Were only 16% of respondent that were influenced to buy car through Events

and Promotions.

7.Please rate the below mentioned parameters you consider while buying the car?

Parameter Strong

ly

agree

Agr

ee

Neithe

r

Agree

Nor

Disagr

ee

Disagr

ee

Strong

ly

Disagr

ee

Thorough

product

knowledge

52 46 2

Effectivecustomer

handling

45 51 3 1

Satisfactory

test drive

53 39 7 1

Value for

money

79 21

Effective sales 26 58 15 1


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follow up

Attractive

deals offered

(Offers/Disco

unt)

64 28 8

(A)Thorough Product Knowledge

Note:Analysis on next page

Interpretation

(1)52% of the respondents strongly agrees and 46% of the respondent agree to the

aspect of knowledgeable sales but it is important for the sales person to have

minimum knowledge to explain, it is the first interaction with the company.

(B) Effective customer handling


Strongly agree, 52Agree, 46

Neither agreenor disagree, 2

disagree, 0

strongly disagree, 0

Thorough product knowledge

Strongly agree

Agree

Neither agree nordisagree

disagree

strongly disagree


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Interpretation

(1) Agreement level is 51%, thus these respondents agree with the customer handling

and interaction quality.

(C)Satisfactory Test Drive


Strongly agree, 45

agree, 51

NeitherAgree nordisagree, 3 Disagree, 1

Strongly disagree, 0

Effective Customer Handling

Strongly agree

agree

Neither Agree nordisagree

Disagree

Strongly disagree


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Interpretation

(1) Strong Agreement level is 53%; majority of them are strongly satisfied with the

test drive offered by the brands they have visited.

(D)Value For Money

Interpretation

Strongly agree, 53agree, 39

Neither agreenor Disagree, 7

disagree, 1


Satisfactory Test Drive

Strongly agree

agree

Neither agree norDisagree

disagree

strongly disagree

stronglyagree, 79

agree, 21

neitheragree nor

disagree, 0

disagree, 0


Value For Moneystrongly agree

agree

neither agree nordisagree

disagree

strongly disagree


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(1) Agreement level is strongly agree 79%, they have got the rewards of their

investment, the customers are at delight level.

(E)Effective Sales Follow-up

Interpretation

(1) Fairly agree 58%; respondents agree to the after sales services but very less

respondents are delighted, it becomes the major attribute in taking decision of buying.

(F)Attractive Deals[offers/discount]

Strongly agree, 26

agree, 58

neitheragree nor

disagree, 15

disagree, 1 strongly disagree, 0

Effective Sales Follow-up

Strongly agree

agree

neither agree nordisagree

disagree

strongly disagree


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Interpretation

(1) 64% strongly agree to it and 28% agree as they have been offered the right

discount at the right time but the remaining are still in neither agree nor disagree

agreement with this aspect.

8. From the following aspects which are most and least importance to you

while buying a car?

parameter Import

ant

Fairly

Import

ant

Neutr

al

Least

Import

ant

Not At

all

importa

nt

Price 64 34 2

Performa

nce

82 18 0 0 0

Driving 80 20 0 0 0

Strongly agree, 64

agree, 28

neither agreenor diagree, 8

disagree, 0


Attractive Deals

Strongly agree

agree

neither agree nordiagree

disagree

strongly disagree


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64

0 20 40 60 80 100

Price

Performance

Driving Comfort

Style and appearance

interior features

safety

quality & durability

size of car

reliability of dealer

resale value

after sales service

64

82

80

64

56

92

76

34

16

28

34

34

18

20

28

38

6

20

48

58

34

50

2

0

0

6

6

2

4

16

24

30

12

0

0

0

0

0

0

0

2

2

2

4

0

0

0

0

0

0

0

0

0

6

0

Not IMP

Least IMP

Neutral

Fairly IMP

Important


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Interpretation

(1) Price factor in this Mid-Segment car segment is as important as the Luxury always

comes at a price; it has extremely high standards which increase the cost. Thus it is of

64% nearly neutral importance to the respondents.

(2) Performance is a strong factor for majority of respondents.

(3) Driving comfort, Style and appearance, Interior Luxury features, Safety features,

Quality and durability are important factors for the customers they cannot compromise

on these aspects.

(4) Size of the car, Reliability of dealer does not hold much importance but is rated as

fairly important by the customers.

(5) Again Resale value is of nearly fairly importance for these types of customers as they

are of middle class and upper class segment so they consider value after the usage, they

are mostly motivated by the value delivered during the usage.

(6) After sales services are Fairly important, it helps in retaining the customers with

higher satisfaction level. And is strongly demanded by the customer. It is a Must.

Note:-

This is the overall analysis, many of the respondents have conflicting views on

these attributes but overall we should consider the above analysis.

Various studies in past suggest that Style, Appearance, status, value, interior is

the subjective viewpoint of the customers.


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9. What were Your option2/Option3?

Brand No.Of Respondent

Maruti Suzuki(M) 10

Nissan(N) 2

Ford(F) 1

Honda(H) 4

Chevrolet(C) 3

Others 12

M&N 5

M&F 9

M&H 17

M&C 5

N&F 4

N&H 4

N&C 3

F&H 6

F&C 4

H&C 11

(This study is based on 100 samples only, thus actual scenario of the market cannot

be estimated by this study)

Ps:Analysis On next Page

OthersInclude:

Toyota,Fiat,Hyundai,Volkswagen


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Interpretation

(1) Maruti and Honda are the leading option for the 17% of the respondents; by 12%

other is the second ranking option in the market, Honda and Chevrolet is on the third

place by 11% of considerat ion from the total respondent.

(2) Other than above brands:10% of Maruti Suzuki and 4% of Honda as an option are

making their strong image in the minds of the customers.

(3) It has been observed that respondents are considering multiple brands as their option

2 / 3, thus we have tried to express these kinds of respondents in the above chart by

making their combinations.

Maruti Suzuki, 10

Nissan, 2Ford, 1

honda, 4

Chevrolet, 3

Others, 12

M&N, 5

M&F, 9M&H, 17

M&C, 5

N&F, 4

N&H, 4

N&C, 3

F&H, 6

F&C, 4

H&C, 11

Considered Option 2/3Maruti Suzuki

Nissan

Ford

honda

Chevrolet

Others

M&N

M&F

M&HM&C

N&F

N&H

N&C

F&H

F&C

H&C


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(4) From over all study of the considered options by the respondents itis concluded that

Maruti Suzuki, Honda and Chevrolet are the upcoming options.

(5) Ford and Nissan are having considerably low market in upcoming future.

10. Are you planning to new a new Car?

Response No.of Respondent

Yes 28

No 72

Interpretation

(1) It can be analyzed that the respondents who are interested in buying a new car is 28%and planning for the same in near future.

Yes, 28

No, 72

Planning to Buy New Car?

Yes

No


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(2) While 72% of the respondents are not sure about their planning to buy the new car.

11.When Are You Planning To Buy a New Car?

Time Period No.Of Respondent

=2 years 9

Undecided 65

Interpretation

(1) Majority of the respondents who are planning to buy a new car are not sure about the

specific time of their new purchase that brings the Undecided percentage to 65%.

=2 Years, 9Undecided, 65

Duration For Next Purchase

=2 Years

Undecided


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(2) Thus the respondents who are interested to buy a new one in less than 6 months are

6%, 6-12 Months 14% thus these customers can be the near future prospects to the

company.

(3) Within 1-2 years again 6% of respondents are planning to buy and more than 2 years

9% of them are planning to buy their next Mid-Segment car.

12. For whom are you planning to buy a new car?

Whom? No.Of RespondentSelf 33

Parents 4

Wife 0

Children 0

Siblings 0

Family 62

Business 2


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Interpretation

(1) 33% of the respondents are planning to buy the car for self, 2% for Business and 62%

for Family.

(2) Compared to above, the percentage of Sibling and wife is very low or we can even

say nil to 0% and 0%, the pa rent s ratio is considerably negligible at 4% and the children

ratio was at 0%

(3) Thus, the observation suggests that most of the people are planning the new car for

their own Family and Self.

Self, 33

Parents, 4

Wife, 0

Children, 0Siblings, 0

Family, 62

Business, 2

New Car For Whom?

Self

Parents

Wife

Children

Siblings

Family

Business


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13. Which car will you plan to buy next?

Brand No.of

Respondent

Maruti Suzuki 37

Nissan 9

Ford 2

Honda 33

Chevrolet 4

Other 16

Interpretation

(1) The buying behavior suggest that the respondents are converting their considered

option 2 Maruti Suzuki (37%) as there new car.

(2) Followed by the Honda with 33% share, Nissan and Chevrolet are also in the normaldemand with 9% and 4% stake in the new car market.

Maruti Suzuki, 37

Nissan, 9

Ford, 2

Honda, 33

Chevrolet, 4

Other, 16

Next Purchase Of Customer

Maruti SuzukiNissan

Ford

Honda

Chevrolet

Other

OthersInclude:

Hyundai,

Volkswagen,

Tata etc.


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(3) As observed earlier Maruti Suzuki percentage was highest in current cars by the

respondent thus they are considering the same brand for their new car.

(4) Hyundai and other brands like Mitsubishi and Toyota are preferred at 16% number

of end users.

14. Does Using the car, helps you express your personality?


Yes 77No 23

Yes, 77

No, 23

Does Using Cars Express personality

Yes

No


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Interpretaion

(1) As we know that in today s world car has become an necessity and a status symbol

(2) There were total 77% of respondent who replied yes for the personality question.

(3) While there were 23% of respondent who were thinking that there car does not or infuture will not express their personality

15 Does the brand you use enhances your importance and social status?

Response No.of RespondentYes 69

No 31

Yes, 69

No, 31

Brand Enhances your importance and socialstatus

Yes

No


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Interpretation

(1) In today s growing world owning a car has become a social status and especially a

way of showing your importance through a brand.

(2) There were 69% of respondent who replied YES and said that there brand enhanced

their importance and social status.

(3) There were 31% of respondent who replied NO about the importance and status.

Some of them said it is just an mode of communication

16. Does your family play an important role in car purchase?


Yes 79

No 21


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Interpretation

(1) 79% of people respondend that there family play an important role in the purchase of

a new car.

(2) While other 21% of people responded that their family was not involved in the

purchase, the reason might be single, settled out of town, lack of knowledge etc..

17 Do you think a well-known branded car is always better in quality and

reliability?


Yes 68

No 32

Yes, 79

No, 21

Family Role in Purchase

Yes

No


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Interpretation

(1) Generally people have a perception about different companies in automobile sector

(2) Here 68% of people responded that a branded car is always better in quality andreliability.

(3) While 32% of respondent denied with this question.

18 Do you think the price of a compact car is good indicator of its quality?


Yes 45

No 55

Yes, 68

No, 32

Branded Car is Always Better inquality&reliability

Yes

No


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Interpretation

Note: compact car includes hatchbacks and compact sedan generally

(1) Here 55% of respondent replied NO because they thought that a compact car in low

price would have compromised with the quality.

(2) But 45% of Respondent replied YES to the question, because they think companies

now a days are concentrating on safety more in such segments.

(This study is based on 100 samples only, thus actual scenario of the market cannot be

estimated by this study)

Yes, 45

No, 55

Price of compact car indicates good quality

Yes

No


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CHAPTER-6

FINDINGS

6.1 Buying behaviorFindings

(1) Survey is regarding the Mid-segment cars, thus all the respondents approached

possessed Mid-segment cars of various segments.

(2) Demographic Background:

I. All the respondents were Male and Female.

II. It is observed that Graduates individuals are having majority amongst the respondents.

Highly educated post graduates owe less Mid-segment cars compared to graduates. This

helps us to analyze the class of the customers.

III. The age group in which majority fall is 19-25 years, because it is the age group with

settled jobs and have the necessary resources for this purpose; Prestige standards and ego

satisfaction is much important.

IV. This kind of category would always be flourished with normal wealth and falls in the

upper class segment of society, thus according to this study people who have income

more than Rs 5 lakhs/ annum are considered wealthy. Majority falls in this income slot.

(3) Current Scenario:

I. According to the survey current cars with respondents (rank wise)

1. Maruti Suzuki

2. Honda

3. Other and considerable fewer shares but growing is of Chevrolet & Ford.


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II. Most people here prefer hatchback and sedan car segment because of various

attributes related to it like Length of the car, sporty as well as decent looking car with

features studded.

III. self usage are preferred the most of the respondents.

(4) Factors that influences the buying behavior:

I. Most of the customers are brand savvy they are concerned only with the brand name,

as all of these brands are on equal footing have the same feature offerings with different

uniqueness, thus convenient brand is selected.

II. Print advertisement and television media is the most effective medium for

advertisement in Mid-Segment car segment.

III. Price factor, Performance, Driving comfort, Style and appearance, Interior Luxury

features, Safety features, Quality and durability are strongly important for the customers

they cannot scarify on these aspects.

IV. Size of the car, after sales services is fairly important.

V. Size of the car, Reliability of dealer is of neutral importance.

VI. Show room Aspects the respondents consider while buying;

1. Strongly agree

i. Satisfactory Test Drive,

ii. Value for Money,

iii. Deals discount offered.

2. Agree

i. Thorough Product Knowledge,

ii. Effective customer handling,

iii. State-of-the-art Showroom,


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iv. Effective Sales follow up.

(5) Options for current buying:

I. No. 1 option selected by the respondents while buying their current car is Maruti

Suzuki and along with this the second and third options of them were Honda and Others.

II. Thus helps the company to grab the opportunity in future to convert these customers

into company s database.

(6) Future planning of the new car:

I. Majority of the respondents are not planning their new purchase.

II. But there purchase duration is undecided, very less percentage of the customers is

planning to buy in the near future within two years, thus these customers can be targeted

to pitch our brand.

III. Most of them who are planning will buy for family, very few are motivated to buy for

their self, friends, business.

IV. The next planned car for majority of respondents is Maruti Suzuki, this shows that

the option considered for current buying will be their next preference.

V. Besides this Honda is one of the most preferred brand, followed by the all new nissan

and Other.


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CHAPTER-7

RECOMMENDATIONS

Recommendations

The survey was carried out with the objective to understand usage pattern and buying

behavior of Mid-segment car users. On the basis of research findings, following are therecommendations for Central Nissan ahmedabad:

Better Financial schemes to attract customers as it is the main reason which is

leading to loss of sales and not able to attract desired level of customers

. Not aggressive but effective follow up has to be done by sales persons because it

makes customer feel that the company is concerned about them and which leads

to customer satisfaction which is indirectly increase in business.

Sales pitch should emphasis on the key features that influences buying decision of

a potential customer.

A new idea or event should be arranged to remove the Typical perception of

Nissan Company.


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CHAPTER-8

CONCLUSION

CONCLUSION

Since Mid-segment Indian Automobile market is continuously in the prowl of surging as

a major car manufacturer, people are purchasing car as there is increase of income ofcommon people as well as change in tastes and preferences of consumers. It is important

for Mid-segment car manufacturers and dealers to understand the different factors

affecting the extent in car purchasing behaviour. This research concludes some important

insights about the Sales of Central Nissan Ahmedabad which is the integral part of my

research project, CUSTOMER S BUYING BEHAVIOR FOR MID -SEGMENT CAR .

The competitors to which the lost sales have gone are MARUTI SUZUKI with first best

preference followed by HONDA and various other brands but these two are major preferences of the lost sales prospects. The reasons for the lost sales are: - Better

financial schemes, heavy cash discount, low rate of interest with longer tenure period,

instant response to test drive inquiry, effective follow up to inquiries, after sales offers.

These are some of the subjective reasons behind it, there can be various product related

and objective reasons too which is justified in the further research. Nssan is the 2nd best

option considered by the lost prospects, thus there exist opportunities for Nissan to

increase its share in the market.

The factors that influence the customers buying decision are divided in two parts 1st

Show room aspects and 2nd Product features and after sales offerings. Show room

aspects consists of Information provided by salesperson, Effective customer Handling,

Satisfactory Test Drive, Value for Money, State-of-the-art Showroom, Effective sales

follow up and Deals offered (Discount/Finance) are affecting the car purchasing

behaviour. People are more conscious about on the spot information provided about


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various cars who serves according to the needs and wants of the customer. Product

features Price and after sales services, availability of service station showing customers

accessibility to the service provided (After sales), safety; technology, type of technology

used wider reach of the service stations (After sales) also affect the most on car

purchasing decision. Performance, Driving comfort, Style & Appearance,

Interior/Luxury Features, Quality and durability, Size of the car, Re-sale value are also

some features that create a strong impact on the buying decision. The awareness factors

like various promotional activities, various information provided by car dealers, brand

image advertisement and print media promotions, features of the car in all are

contributing in making car purchasing behaviour of customers.

The current study also tells us about the planning of the surveyed customers for their newcar. The respondents are planning their new purchase but the duration of the purchase is

uncertain, the next planned car for majority of respondents is Maruti Suzuki. Besides this

Honda is one of the most preferred brand, followed by the all new nissan and other

current market leader.

Thus, the current preference, factors affecting the buying behavior, and further planning

of new car is evaluated in this research.

8/10/2019 my fin

my final sip report.pdf

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