My Research Report

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A Research Report

On

A STUDY OF ETHICAL PRACTICES IN

MARKETING STRATEGIES OF AUTOMOBILE

INDUSTRY

By

Adnan Razi

Under the guidance of

Ila Pandey

(assist.proff.)

Gautam Buddha Technical University

In the partial fulfillment of the requirement for the

award of

The degree of

Master of Business Administration (MBA)

ThroughVIDHYA BHAVAN COLLEGE FOR

ENGENEERING TECHNOLOGY

Year (2011-12)

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DECLARATION

I hereby declare that winter research report on A STUDY OF ETHICAL PRACTICES IN

MARKETING STRATEGIES OF AUTO MOBILE INDUSTRY

Kanpur (up.) is a factual report of my own research work undertaken towards partial fulfillment

of the degree of management.

The facts and figures presented here is correct and true to best of knowledge & belief

Signature

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ACKNOWLEDGEMENT

I would be thankful to my guide Miss. Ila Pandey (Assist. Proff.) that she helped me a lot in

completing the winter research A STUDY OF ETHICAL PRACTICES IN MARKETING

STRATEGIES OF AUTO MOBILE INDUSTRY

Without her great Guidance I would not be able to complete my winter research report.

(Adnan Razi)

ROLL NO.-1041870003

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TABLE OF CONTENT

Chapter 1) Introduction-5

1.1 Executive Summary6

1.2 Meaning/Definition..8

1.3 Importance of study..27

1.4 Research Methodology.28

1.5 Scope of study29

1.6 Research methodology.30

1.7 Methods of data collection31

1.8Limitation.34

1.9 Summary35

Chapter 2) Industry Profile-..36

2.1. Introduction of Industry38

2.2. Historical development..42

2.3. Product information 44

2.4. Financial position of Industry.\......................................................................54

Chapter 3) Data analysis-..56

3.1. Data presentation & Analysis...58

3.2. Conclusion.68

Chapter 4)

4.1. Suggestion/Recommendation70

4.2. Bibliographies ..72

4.3. Appendix/Annexure74

4.4. Limitations81

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CHAPTER -1

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Executive Summary

The research report is hard intends to reflect some of the basic covered under the A STUDY OF

ETHICAL PRACTICES IN MARKETING STRATEGIES OF AUTO MOBILE INDUSTRY.

Ethical practices are seen as an individuals own personal attitude and a belief concerning what

is right or wrong, good or bad. It is important to note that ethics reside within individuals and

that organization doesnt have ethics. People have ethics consequently, its definition and

understanding varies from person to person. These are not absolute, but are relative. Ethical

behaviors are in the eye of beholder. What is right or wrong is a personal individual matter, but is

still influenced by socially accepted norms.

The overall objective of the research is to consider the impact of the ethical issues, people in

country dont own a four wheeler and all the major auto companies are trying to increase their

sales by several moves as well as with the help of adopting the ethical practices. Like TATA has

launch NANO the peoples car and now TATA motors is also planning to come out with an

electric car as well as hybrid car and ethical issue related with the tata nano Singoor plant. ,

moreover in two wheeler segment many companies like Mahindra and Mahindra grow even

more than expectations. From the Technical Analysis of both companies we come to know that

the share price of Maruti will move in the band of Rs.1275 to Rs.1425 and that of TATA Motors

will move in the range of Rs. 430 to Rs. 490 if certain correction made in the market. We have

also come to know that every company posses its own beneficial way to promote the product by

ethical issues.

The total aspects have been formulated and presented on the basis of ideas and information

gathered by me during a shorter span of research training i.e. an important portion of the MBA

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curriculum leading to an opportunity for the participant to have a practical exposure of the

contents under the topic beyond what has already been studies during the class-room interaction.

This study fulfills the objective of the Ethical Practices used in automobile industry to

understand various aspects of modern marketing strategic techniques.

The objective of the study of Ethical issues in automobile Industry is to understand the

importance and impact of these practices in any Industry and how it is important for this Industry

in the growth.

In this project I have studied the techniques of automobile company towards the promotion of

the product and give conclusion and recommendations.

I am grateful to all those who have helped me directly and indirectly in preparing this report. I

firmly believe that there is always scope for improvement accordingly I shall look forward to

receive suggestion.(Which shall be thankfully acknowledged) for further enriching the quality of

this research report.

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Meaning & definition

ETHICS

Ethics refers to a system of moral principles a sense of right and wrong, and goodness and

badness of actions and the motives and consequences of these actions. As applied to business

firms, ethics is the study of good and evils, right and wrong and just and unjust actions of

businessmen.

Ethics is a body of principles or standards of human conduct that govern the behavior of

individuals and groups. Ethics arise not simply from man's creation but from human nature itself

making it a natural body of laws from which man's laws follow.

Ethics is a branch of philosophy and is considered a normative science because it is concerned

with the norms of human conduct, as distinguished from formal sciences such as mathematics

and logic, physical sciences such as chemistry and physics, and empirical sciences such as

economics and psychology.

Ethics is seen as an individuals own personal attitude and a belief concerning what is right or

wrong, good or bad. It is important to note that ethics reside within individuals and that

organization doesnt have ethics. People have ethics consequently, its definition and

understanding varies from person to person. These are not absolute, but are relative. Ethical

behaviors are in the eye of beholder. What is right or wrong is a personal individual matter, but is

still influenced by socially accepted norms.

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Right, and proper and fair are the ethical terms. It expresses a judgment about behavior towards

people they felt to be just. Ethics are useful tools for sorting out the good and bad components

within complex human interactions.

Business ethics does not differ from generally accepted norms of good or bad practices. If

dishonesty is considers to be unethical and immoral in the society, then any business man who is

dishonest his or her employees, customers shareholders, or competitors is unethical and immoral

person.

Formation of ethics

An individuals ethics are formulated through the operation of forces in the individuals

environment. These are discussed in the succeeding paragraphs.

Family influences

The formation of ethics begins when the individual is a child. Thus the family environment has a

significant influence in determining what the child learns about good and bad, right and wrong.

Peer influences

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As the child develops contacts outside the home through home, school, play and work, peers

exert considerable influence on the individuals ethical beliefs.

Experiences

As a person matures and develops as a human being, he or she will be exposed to many critical

experiences that will be affect his or her ethical standards.

Values and morals

Ones ethical standards are also greatly influenced by values and morals. People who place high

value on money and material possessions may nothave strong ethical standard regarding

behaviors that facilitate the accumulation of that wealth.

Situation Factors

People often change their ethics in response to unknown situational factors. An employee, who is

threatened with loosing a job that has been held for years, may commit unethical acts in order to

save the job.

Religion

One of the oldest sources of ethical inspiration is religion. More than 1,00,000 different religion

exist across the globe .Despite doctrinal differences, the major religion coverage on the believe

that ethics is an expression of divine will that reveals the nature of right and wrong in business

and others walks of life.

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The legal system

Laws are rules of conduct, approves by legislatures, that guide human behavior in any society

.They codify ethical expectations and change as new evils emerge. But law cannot cover all

ethical expectation of society. Whenever ethics the law codifies, it is binding on businesses. The

society expects businesses to abide by the law. Obeying the law is presumed to be ethical

behavior .Law breaking in business is common. Taxes are evaded, hundred of employees die

because of occupational disease, many perish because of industrial accidents, and million others

receive disabling injuries on the job. The blame for these death and injuries had to be shared by

employees and employers who fail to adhere to occupational health and safety laws. Consumer

suffer because of poor quality and high priced products by the supplied by the businessmen

.Businesses that degrade the environment by disregarding environment

protection laws cause misery to the society.

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BUSINESS ETHICS

According to an old joke business ethics is a contradiction in terms. For some this is only

humor. For others there is a serious question: As business is by nature unethical, how can there

be such a subject as business ethics?

Business Ethics is a form of the art of applied ethics that examines ethical principles and moral

or ethical problems that can arise in a business environment. In the increasingly conscience-

focused marketplaces of the 21st century, the demand for more ethical business processes and

actions ~ Ethicism, is increasing. Simultaneously, pressure is applied on industry to improve

business ethics through new public initiatives and laws.

Definition of Business Ethics:

Business Ethics is a specialized study of moral right and wrong. It concentrates on moral

standards as they apply particularly to business policies, institutions, and behavior.

Ethical Issues Relate to all Functional Areas in a business

Accounting

Finance

Management

Marketing

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Values create credibility with the public.

A company perceived by the public to be ethical and socially responsive will be honored ands

respected even by those who have no intimate knowledge of its actual working.

There will be an instinctive prejudice in favor of its products, since people believe that the

company offers value for money. Its public issues will attract an immediate response. Value give

the management credibility with its employees. Values are supposed to be a common language to

bring the leadership and its people together Organizational ethics, when perceived by employee

as genuine, create common goals, values, and language. The HR management can have

credibility with its employees simply because it has credibility with the people. Neither a sound

business strategy, nor a generous compensation policy and fringe benefits can win employee

credibility, but perceived moral and social uprightness can.

Values help better decision making.

Another point of great importance is that an ethical attitude helps the management make better

decisions, that is ,decision which are in the interest of the public, their employees, and the

companys own long-term good, even though the decision making is slower. This is so because

respect for ethics will force a management to take various aspect- economic, social and ethical-in

making decision.

Ethics and profit go together.

A company which is inspired by ethical conduct is also profitable. Value-driven companies are

most likely to be successful in long run, though in the short run, they may lose money.

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Law cant protect society, ethics can.

Ethics is important because, law and lawyer cannot do everything to protect society. Technology

develops faster than the government can regulate. People in an industry know the dangers in the

particular technology better than the regulatory agencies. Further, the government cannot always

regulate all activities which are harmful to the society. Where law fails, ethics can succeed. An

ethically-oriented management takes measures to prevent pollution and protects workers health

even before being mended by law .An ethically sound HR manager, who can reach out to

agitated employees, will quell a trouble more effectively than the police.

FOUR VIEWS OF ETHICS

1. UTILITARIAN VIEW of ethics says that:

Ethical decisions are made solely on the basis of their outcomes or consequences.

Greatest good is provided for the greatest number

Encourages efficiency and productivity and is consistent with the goal of profit maximization

2. RIGHTS VIEW of ethics is concerned with respecting and protecting individual liberties and

privileges such as the rights to privacy, free speech, and due process.

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Respecting and protecting individual liberties and privileges

Seeks to protect individual rights of conscience, free speech, life and safety, and due process

To make ethical decisions, managers need to avoid interfering with the fundamental rights of

others

3. Theory of JUSTICE VIEW is where managers impose and enforce rules fairly and

impartially and do so by following all legal rules and regulations.

Organizational rules are enforced fairly and impartially and follow all legal rules and

regulations

Protects the interests of underrepresented stakeholders and the rights of

Employees

4. INTEGRATIVE SOCIAL CONTRACTS theory proposes that ethical decisions be based

on existing ethical norms in industries and communities in determining what constitutes right

and wrong.

Acts are moral when they promote the individuals best long-term interests, which ultimately

leads to the greater good

Individualism is believed to lead to honesty and integrity because that works best in the long

run.

Ethics has come to be considered a management discipline, especially since the birth of the

social responsibility movement in the 1960s. In that decade, social awareness movements raised

expectations of businesses to use their massive financial and social influence to address social

problems such as poverty, crime, environmental protection, equal rights, public health and

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improving education. An increasing number of people asserted that because businesses were

making a profit from using the planets resources, these businesses owed it to the planet to work

to improve society.

Ethical behavior starts at the top. Before a company can expect to be viewed s ethical in the

business community, ethical behavior within its own walls-to and by employees-is a must, and

top management dictates the mood. Ethical behavior by the leaders of an organization will

inevitably set the tone for the rest of the company-values will remain consistent. Further, a well

communicated commitment to ethics sends a powerful message that ethical behavior is

considered to be a business imperative.

BASIC ISSUES IN BUSINESS ETHICS

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GENERAL BUSINESS ETHICAL ISSUES:

This part of business ethics overlaps with the philosophy of business, one of the aims of which

is to determine the fundamental purposes of a company. If a company's main purpose is to

maximize the returns to its shareholders, then it could be seen as unethical for a company to

consider the interests and rights of anyone else.

Corporate social responsibility or CSR: an umbrella term under which the ethical rights and

duties existing between companies and society is debated.

Issues regarding the moral rights and duties between a company and its shareholders: fiduciary

responsibility, stakeholder concept v. shareholder concept.

Ethical issues concerning relations between different companies: e.g. hostile takeovers,

industrial espionage.

Leadership issues: corporate governance.

Political contributions made by corporations.

Law reform, such as the ethical debate over introducing a crime of corporate manslaughter.

The misuse of corporate ethics policies as marketing instruments .

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THE MAJOR PRINCIPLES OF BUSINESS ETHICS:

No discrimination should be done on the basis of caste ,color , and religion,

The polices should be fair and transparent

Proper provision of safety should be provided by the company to he employees

There should be proper honesty, loyalty, and integrity in the employees.

The companys resources should not be utilized by the employees for their personal usage

Company should provide better environment condition

Information about employees personal lives, health, and work evaluations should be

confidential

Regular measurement of employee satisfaction should by company.

To neither give nor take any illegal payment, remuneration, gift, donation, or comparable,

benefits to obtain business or favors.

To comply with all regulations regarding preservation of the environment.

Employee should report to management any actual or possible violation of code or an event

that could affect the business or reputation of the employees company.

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THEORETICAL ISSUES IN BUSINESS ETHICS

CONFLICTING INTERESTS

Business ethics can be examined from various perspectives, including the perspective of the

employee, the commercial enterprise, and society as a whole. Very often, situations arise in

which there is conflict between one or more of the parties, such that serving the interest of one

party is a detriment to the other(s). For example, a particular outcome might be good for the

employee, whereas, it would be bad for the company, society, or vice versa. Some ethicists (e.g.,

Henry Sidgwick) see the principal role of ethics as the harmonization and reconciliation of

conflicting interests.

ETHICAL ISSUES AND APPROACHES

Philosophers and others disagree about the purpose of a business ethic in society. For example,

some suggest that the principal purpose of a business is to maximize returns to its owners, or in

the case of a publicly-traded concern, its shareholders. Thus, under this view, only those

activities that increase profitability and shareholder value should be encouraged.

Some believe that the only companies that are likely to survive in a competitive marketplace are

those that place profit maximization above everything else.

However, some point out that self interest would still require a business to obey the law and

adhere to basic moral rules, because the consequences of failing to do so could be very costly in

fines, loss of licensure, or company reputation. The economist Milton Friedman was a leading

proponent of this view.

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Other theorists contend that a business has moral duties that extend well beyond serving the

interests of its owners or stockholders, and that these duties consist of more than simply obeying

the law. They believe a business has moral responsibilities to so-called stakeholders, people who

have an interest in the conduct of the business, which might include employees, customers,

vendors, the local community, or even society as a whole. They would say that stakeholders have

certain rights with regard to how the business operates, and some would suggest that this

includes even rights of governance.

Some theorists have adapted social contract theory to business, whereby companies become

quasi-democratic associations, and employees and other stakeholders are given voice over a

company's operations. This approach has become especially popular subsequent to the revival of

contract theory in political philosophy, which is largely due to John Rawls' A Theory of Justice,

and the advent of the consensus-oriented approach to solving business problems, an aspect of the

"quality movement" that emerged in the 1980s. Professors Thomas Donaldson and Thomas

Dunfee proposed a version of contract theory for business, which they call Integrative Social

Contracts Theory. They posit that conflicting interests are best resolved by formulating a "fair

agreement" between the parties, using a combination of

i) Macro-principles that all rational people would agree upon as universal principles, and,

ii) Micro-principles formulated by actual agreements among the interested parties.

Critics say the proponents of contract theories miss a central point, namely, that a business is

someone's property and not a mini-state or a means of distributing social justice.

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Ethical issues can arise when companies must comply with multiple and sometimes conflicting

legal or cultural standards, as in the case of multinational companies that operate in 20 countries

with varying practices. The question arises, for example, ought a company to obey the laws of its

home country, or should it follow the less stringent laws of the developing country in which it

does business?

To illustrate, United States law forbids companies from paying bribes either domestically or

overseas; however, in other parts of the world, bribery is a customary, accepted way of doing

business. Similar problems can occur with regard to child labor, employee safety, work hours,

wages, discrimination, and environmental protection laws. It is sometimes claimed that a

Gresham's law of ethics applies in which bad ethical practices drive out good ethical practices. It

is claimed that in a competitive business environment, those companies that survive are the ones

that recognize that their only role is to maximize profits. On this view, the competitive system

fosters a downward ethical spiral.

10 Benefits of Managing Ethics in the Workplace

The following list describes various types of benefits from managing ethics in the workplace:

1. Attention to business ethics has substantially improved society.

A matter of decades ago, children in our country worked 16-hour days. Workers limbs were torn off

and disabled workers were condemned to poverty and often to starvation. Trusts controlled some

markets to the extent that prices were fixed and small businesses choked out. Price fixing crippled

normal market forces. Employees were terminated based on personalities. Influence was applied

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through intimidation and harassment. Then society reacted and demanded that businesses place high

value on fairness and equal rights. Anti-trust laws were instituted. Government agencies were

established. Unions were organized. Laws and regulations were established.

2. Ethics programs help maintain a moral course in turbulent times.

Attention to business ethics is critical during times of fundamental change times much like those

faced now by businesses, both nonprofit and for-profit. During times of change, there is often no

clear moral compass to guide leaders through complex conflicts about what is right or wrong.

Continuing attention to ethics in the workplace sensitizes leaders and staff to how they want to act --

consistently.

3. Ethics programs cultivate strong teamwork and productivity.

Ethics programs align employee behaviors with those top priority ethical values preferred by leaders

of the organization. Usually, an organization finds surprising disparity between its preferred values

and the values actually reflected by behaviors in the workplace. Ongoing attention and dialogue

regarding values in the workplace builds openness, integrity and community -- critical ingredients of

strong teams in the workplace. Employees feel strong alignment between their values and those of

the organization. They react with strong motivation and performance.

4. Ethics programs support employee growth and meaning.

Attention to ethics in the workplace helps employees face reality, both good and bad -- in the

organization and themselves. Employees feel full confidence they can admit and deal with whatever

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comes their way. Their most striking finding: the more emotionally healthy executives, as measured

on a battery of tests, the more likely they were to score high on ethics tests.

5. Ethics programs are an insurance policy -- they help ensure that policies are legal.

There is an increasing number of lawsuits in regard to personnel matters and to effects of an

organizations services or products on stakeholders. As mentioned earlier in this document, ethical

principles are often state-of-the-art legal matters. These principles are often applied to current, major

ethical issues to become legislation. Attention to ethics ensures highly ethical policies and

procedures in the workplace. Its far better to incur the cost of mechanisms to ensure ethical

practices now than to incur costs of litigation later. A major intent of well-designed personnel

policies is to ensure ethical treatment of employees, e.g., in matters of hiring, evaluating,

disciplining, firing, etc. An employer can be subject to suit for breach of contract for failure to

comply with any promise it made, so the gap between stated corporate culture and actual practice

has significant legal, as well as ethical implications.

6. Ethics programs help avoid criminal acts of omission and can lower fines.

Ethics programs tend to detect ethical issues and violations early on so they can be reported or

addressed. In some cases, when an organization is aware of an actual or potential violation and does

not report it to the appropriate authorities, this can be considered a criminal act, e.g., in business

dealings with certain government agencies, such as the Defense Department. The recent Federal

Sentencing Guidelines specify major penalties for various types of major ethics violations.

However, the guidelines potentially lower fines if an organization has clearly made an effort to

operate ethically.

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7. Ethics programs help manage values associated with quality management, strategic

planning and diversity management -- this benefit needs far more attention. Ethics programs

identify preferred values and ensuring organizational behaviors are aligned with those values. This

effort includes recording the values, developing policies and procedures to align behaviors with

preferred values, and then training all personnel about the policies and procedures. This overall

effort is very useful for several other programs in the workplace that require behaviors to be aligned

with values, including quality management, strategic planning and diversity management. Total

Quality Management includes high priority on certain operating values, e.g., trust among

stakeholders, performance, reliability, measurement, and feedback. Eastman and Polaroid use ethics

tools in their quality programs to ensure integrity in their relationships with stakeholders. Ethics

management techniques are highly useful for managing strategic values, e.g., expand market share,

reduce costs, etc. Ethics management programs are also useful in managing diversity. Diversity is

much more than the color of peoples skin -- its acknowledging different values and perspectives.

Diversity programs require recognizing and applying diverse values and perspectives -- these

activities are the basis of a sound ethics management program.

8. Ethics programs promote a strong public image.

Attention to ethics is also strong public relations -- admittedly, managing ethics should not be done

primarily for reasons of public relations. But, frankly, the fact that an organization regularly gives

attention to its ethics can portray a strong positive to the public. People see those organizations as

valuing people more than profit, as striving to operate with the utmost of integrity and honor.

Aligning behavior with values is critical to effective marketing and public relations programs.

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Ethical values, consistently applied, are the cornerstones in building a commercially successful and

socially responsible business.

9. Overall benefits of ethics programs: managing ethical values in the workplace legitimizes

managerial actions, strengthens the coherence and balance of the organizations culture, improves

trust in relationships between individuals and groups, supports greater consistency in standards and

qualities of products, and cultivates greater sensitivity to the impact of the enterprises values and

messages.

10. Last - and most -- formal attention to ethics in the workplace is the right thing to do.

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IMPORTANCE OF STUDY

This study explores the good and bad ethical practices that have been used at the time of

making marketing strategies.

This research is helpful in promoting good ethical issues and neglecting bad ethical issues

at the time of designing and implementing marketing strategies.

Making good marketing strategy is an important task and for that a value based system is

helpful in developing good strategies.

A good value based system is dependent upon the good ethical practices and this research

report is helpful in that.

Marking strategies are most important strategies because the product or services are only

promoted and sale by the help of it for that the importance of ethical practices have been

increased and this study is helpful for that.

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RESEARCH OBJECTIVE

Primary objective:-

To find out the major ethical issues related with marketing strategies in automobile

industry.

Secondary Objectives

To find out the impact of these ethical issues on the marketing strategies in automobile

industry.

Comparative analysis TATA Motors and Maruti Suzuki and Mahindra related with

ethical issues that applied in these organizations.

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SCOPE OF STUDY

This study explores the impact of ethical practices used by the automobile industry.

How employees and consumers are affected by the ethical practices of the automobile

organizations.

This study explores that how good or bad ethical practices impact the marketing

strategy of the organization.

This study also explores that how the good ethical practices motivate the employees

to work effectively for the organization.

This research shows that how the good value based system improves the performance

of the organization.

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RESEARCH METHODOLOGY

RESEARCH DESIGN DESCIPTIVE

RESEARCH APPROACH SURVEY

CONTACT METHOD PERSONAL INTERVIEW

SAMPLE SIZE 100

SAMPLE UNIT BUSINESS MAN, SERVICE MAN, HOUSE

WIFES, STUDENTS

SAMPLING CRITERIA RANDOM SAMPLING

RESEARCH INSTRUMENTS QUESTIONNAIRE (SCHEDULE)

TYPE OF DATA COLLECTED PRIMARY DATA

SECONDARY DATA

AREA OF RESEARCH KANPUR

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METHODS OF DATA COLLECTION

PPRRIIMMAARRYY SSOOUURRCCEESS

Questionnaire.

SSEECCOONNDDAARRYY SSOOUURRCCEESS

Newspapers.

Magazines.

Internet sites.

DDAATTAA CCOOLLLLEECCTTIIOONN

PPRRIIMMAARRYY DDAATTAA

The primary data are those data, which are collected afresh and for the first time and happen to

be original in character. The primary data to be collected for the study are-

BByy SSttrruuccttuurreedd QQuueessttiioonnnnaaiirree..

SSEECCOONNDDAARRYY DDAATTAA

Secondary data are those data which have already been collected by someone else and which

already had been passed though the statically process. The secondary data to be collected for the

study are-

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PPuubblliiccaattiioonn OOffTThhee CCoommppaannyy

PPeerriiooddiiccaall OOffTThhee CCoommppaannyy

BByy IInntteerrnneett WWeebbssiitteess

RREESSEEAARRCCHH IINNSSTTRRUUMMEENNTT

SSttrruuccttuurreedd QQuueessttiioonnnnaaiirree::

A Questionnaire consists of a number of questions printed or typed and a definite order on forms.

It is the set of questions presented to the retailers for answers. When the questions have only two

alternatives or of multiple choices, then it is known as closed-end questionnaire, which is hence

used the given study.

RREESSEEAARRCCHH IINNSSTTRRUUMMEENNTTSS UUSSEEDD

For our research purpose instruments used were extensive literature survey and Internet surfing.

The idea was to gain enough insight into the automobile phenomenon and analyzing thecharacteristics of the population under study.

We adopted sample survey because it was not possible to examine every item in the population.

It was possible to capture sufficiently acquit result by studying only a portion of the total

population which is the true representative of the population under study.

The phase one of study corresponded to the collection of data from automobile distributors of

our competitors who are in better personal contact with their customer so as to analyze the

demand of the customers, their working environment and satisfaction level with their respected

companies.

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SSaammpplliinngg tteecchhnniiqquueess uusseedd aanndd tthhee ssaammppllee ssiizzee

Simple random sampling technique is used to collect data from the population. This technique

gave each item an equal probability of being selected.

Sample size------110000

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LIMITATION

In every project/study undertaken limitations arises and are inevitable. Similarly, in this project

several limitations appear, which would have been eliminated but for constraints of time,

accessibility to information it has not been possible.

The limitation of the report is that the respondents always try to give positive answer.

Thats why the 100% authentication cannot be achieved

The report is based on primary and secondary data some time and there is always error

held in collecting data.

Respondent some time gives negative feedback because of that is become difficult to

analysis data.

This research has been in Kanpur region only.

Because of the random sampling chances of biasness have been occurred.

In fact, this research report involves human processing and analysis. Therefore, there are

chances of human error.

This project report is based on the information given by the head or Unit Managers of

the centers. The information is also collected through some magazines, newspapers and

e-mails. Some respondents were not interested in giving answers as they were appearing

to be busy.

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SUMMARY

Title of Research : A Study of Ethical Practices Used In

The Marketing Strategies of Automobile Industry

Name of Industry on which

Research is conducted : Automobile

Research Area : Kanpur

Research Design : Descriptive

Data Collection : Primary & Secondary

Method of Data Collection : Personal interview Collected

Questionnaire (Schedule)

Reports and magazine.

Sample Size : 100

Research under Guidance : Ila Pandey

(Assist. Proff)

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CHAPTER-2

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INTRODUCTION OF INDUSTRY

The automotive industry in India is one of the largest in the world and one of the fastest growing

globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest

in the world, with an annual production of more than 3.7 million units in 2010.According to

recent reports, India is set to overtake Brazil to become the sixth largest passenger 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 "Detroitof India" with the India operations

ofFord, 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,

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Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with

companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors,

Mercedes Benz, Land Rover, Fiat and Force Motors having 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 ofGujarat with manufacturing facility ofGeneral Motors in Halol

and further planned for 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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OVERVIEW

The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5

million each year. The dominant products of the industry are two-wheelers with a market share

of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and

three-wheelers share about 9% of the market between them. About 91% of the vehicles sold are

used by households and only about 9% for commercial purposes. The industry has a turnover of

more than USD $35 billion and provides direct and indirect employment to over 13 million

people.

The supply chain is similar to the supply chain of the automotive industry in Europe and

America.

Interestingly, the level of trade exports in this sector in India has been medium and imports have

been low. However, this is rapidly changing and both exports and imports are increasing. The

demand determinants of the industry are factors like affordability, product innovation,

infrastructure and price of fuel. Also, the basis of competition in the sector is high and

increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the

advantages of this sector in India are yet to be leveraged.

With a high cost of developing production facilities, limited accessibility to new technology, and

increasing competition, the barriers to enter the Indian Automotive sector are high. On the other

hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed

among the three tiers of Government. The cost structure of the industry is fairly traditional, but

the profitability of motor vehicle manufacturers has been rising over the past five years. Major

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players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording

profits after tax of about 6% to 11%.

The level of technology change in the Motor vehicle Industry has been high but, the rate of

change in technology has been medium. Investment in the technology by the producers has been

high. System-suppliers of integrated components and sub-systems have become the order of the

day. However, further investment in new technologies will help the industry be more

competitive. Over the past few years, the industry has been volatile. Currently, India's increasing

per capita disposable income which is expected to rise by 106% by 2015[18] and growth in

exports is playing a major role in the rise and competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with a market share of about 64%.

Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai

Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas

market. Hero MotoCorp is occupying over 41% and sharing 26%[18]of the two-wheeler market

in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler

market.

Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In

2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars.

Steel is the major input used by manufacturers and the rise in price of steel is putting a cost

pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil

and petrol affect the driving habits of consumers and the type of car they buy.

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The key to success in the industry is to improve labour productivity, labour flexibility, and

capital efficiency. Having quality manpower, infrastructure improvements, and raw material

availability also play a major role. Access to latest and most efficient technology and techniques

will bring competitive advantage to the major players. Utilising manufacturing plants to

optimum level and understanding implications from the government policies are the essentials in

the Automotive Industry of India.

Both, Industry and Indian Government are obligated to intervene the Indian Automotive

industry. The Indian government should facilitate infrastructure creation, create favorable and

predictable business environment, attract investment and promote research and development.

The role of Industry will primarily be in designing and manufacturing products of world-class

quality establishing cost competitiveness and improving productivity in labor and in capital.

With a combined effort, the Indian Automotive industry will emerge as the destination of choice

in the world for design and manufacturing of automobiles.

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HISTORICAL DEVELOPMENT

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

oflight 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 to the 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 ofMaruti Udyog. 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 liberalisation 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.

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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 by multinational automobile manufacturers. In February 2009, monthly

sales of passenger 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.

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PRODUCT INFORMATION

The products which have been produced by the automobile industry are as follows.

Two wheelers vehicles

Three wheelers vehicles

Four wheelers vehicles

Truckers

And Heavy vehicles

These products have been segmented according to the needs and the wants of the consumers.

And in present era these product have been changed into an industry for an example two

wheelers industry and four wheelers industry.

Segmentation has played very important role in auto mobile industry because different

consumers have different needs and different wants according to their need and wants product

has been designed and developed.

TWO WHEELERS

Evolution of Two-wheeler Industry In India

Two-wheeler segment is one of the most important components of the automobile sector that has

undergone significant changes due to shift in policy environment. The two-wheeler industry has

been in existence in the country since 1955. It consists of three segments viz. scooters,

motorcycles and mopeds. According to the figures published by SIAM, the share of two-

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wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This

high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms,

capacity expansion, choice of products including capacity mix and technology, all critical areas

of functioning of an industry, were effectively controlled by the State machinery. The lapses in

the system had invited fresh policy options that came into being in late sixties. Amongst these

policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation

Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This

controlling mechanism over the industry resulted in: (a) several firms operating below minimum

scale of efficiency; (b) under-utilization of capacity; and (c) usage of outdated technology.

Recognition of the damaging effects of licensing and fettering policies led to initiation of

reforms, which ultimately took a more prominent shape with the introduction of the New

Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in response to the major

macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of

regulation and tight control to a more liberalized and competitive era. Two major results of

policy changes during these years in two-wheeler industry were that the, weaker players died out

giving way to the new entrants and superior products and a sizeable increase in number of brands

entered the market that compelled the firms to compete on the basis of product attributes.

Finally, the two-wheeler industry in the country has been able to witness a proliferation of

brands with introduction of new technology as well as increase in number of players. However,

with various policy measures undertaken in order to increase the competition, though the degree

of concentration has been lessened over time, deregulation of the industry has not really resulted

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in higher level of competition.

A Growth Perspective

The composition of the two-wheeler industry has witnessed sea changes in the post-reform

period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the

Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the

total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of

the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6

per cent respectively. A clear picture of the motorcycle segment's gaining importance during this

period is exhibited by the Figures 1, 2 and 3 depicting total sales, share and annual growth during

the period 1993-94 through 2003-04.

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National Council of Applied Economic Research (NCAER) had forecast two-wheeler demand

during the period 2002-03 through 2011-12. The forecasts had been made using econometric

technique along with inputs obtained from a primary survey conducted at 14 prime cities in the

country. Estimations were based on Panel Regression, which takes into account both time series

and cross section variation in data. A panel data of 16 major states over a period of 5 years

ending 1999 was used for the estimation of parameters. The models considered a large number of

macro-economic, demographic and socio-economic variables to arrive at the best estimations for

different two-wheeler segments. The projections have been made at all India and regional levels.

Different scenarios have been presented based on different assumptions regarding the demand

drivers of the two-wheeler industry. The most likely scenario assumed annual growth rate of

Gross Domestic Product (GDP) to be 5.5 per cent during 2002-03 and was anticipated to

increase gradually to 6.5 per cent during 2011-12. The all-India and region-wise projected

growth trends for the motorcycles and scooters are presented in Table 1. The demand for mopeds

is not presented in this analysis due to its already shrinking status compared to' motorcycles and

scooters.

It is important to remember that the above-mentioned forecast presents a long-term growth for a

period of 10 years. The high growth rate in motorcycle segment at present will stabilise after a

certain point beyond which a condition of equilibrium will set the growth path. Another

important thing to keep in mind while interpreting these growth rates is that the forecast could

consider the trend till 1999 and the model could not capture the recent developments that have

taken place in last few years. However, this will not alter the regional distribution to a significant

extent.

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Table 1 suggests two important dimensions for the two-wheeler industry. The region-wise

numbers of motorcycle and scooter suggest the future market for these segments. At the all India

level, the demand for motorcycles will be almost 10 times of that of the scooters. The same in the

western region will be almost 20 times. It is also evident from the table that motorcycle will find

its major market in the western region of the country, which will account for more than 40 per

cent of its total demand. The south and the north-central region will follow this. The demand for

scooters will be the maximum in the northern region, which will account for more than 50 per

cent of the demand for scooters in 2011-12.

Table 1: Demand Forecast for Motorcycles and Scooters for 2011-12

2-Wheeler Segment Regions

South West North-Central East & North-East All India

Motorcycle2835

(12.9)

4327

(16.8)

2624

(12.5)

883

(11.1)

10669

(14.0)

Scooter203

(2.6)

219

(3.5)

602

(2.8)

99

(2.0)

1124

(2.08)

Note: Compound Annual Rate of Growth during 2002-03 and 2011-12 is presented

in parenthesis

Source: Indian Automobile Industry: Optimism in the Air, Industry Insight,

NCAER

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The present economic situation of the country makes the scenario brighter for short-term

demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004.

Both industry and the service sectors have shown high growth during this period at the rates of

8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP

growth to some extent. Taking into account all these factors along with other leading indicators

including government spending, foreign investment, inflation and export growth, NCAER has

projected an average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term

forecast suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very

recently, IMF has portrayed a sustained global recovery in World Economic Outlook. A

significant shift has also been observed in Indian households from the lower income group to the

middle income group in recent years. The finance companies are also more aggressive in their

marketing compared to previous years. Combining all these factors, one may visualize a

higher growth rate in two-wheeler demand than presented in Table 1, particularly for the

motorcycle segment.

There is a large untapped market in semi-urban and rural areas of the country. Any strategic

planning for the two-wheeler industry needs to identify these markets with the help of available

statistical techniques. Potential markets can be identified as well as prioritized using these

techniques with the help of secondary data on socio-economic parameters. For the two-wheeler

industry, it is also important to identify the target groups for various categories of motorcycles

and scooters. With the formal introduction of secondhand car market by the reputed car

manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry

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needs to upgrade its market information system to capture the new market and to maintain its

already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban

areas also requires more focused attention. It is also imperative to initiate measures to make the

presence of Indian two-wheeler industry felt in the global market. Adequate incentives for

promoting exports and setting up of institutional mechanism such as Automobile Export

Promotion Council would be of great help for further surge in demand for the Indian two-

wheeler industry.

FOUR WHEELERS VEHICLES

Suzuki was a leader in the development of four-wheeled ATVs. It sold the first model, the 1982

QuadRunner LT125, which was a recreational machine for beginners. Suzuki sold the first four-

wheeled mini ATV, the LT50, from 1984 to 1987. After the LT50, Suzuki sold the first ATV

with a CVT transmission, the LT80, from 1987 to 2006.

In 1985 Suzuki introduced to the industry the first high-performance four-wheel ATV, the

Suzuki LT250R QuadRacer. This machine was in production for the 1985-1992 model years.

During its production run it underwent three major engineering makeovers. However, the core

features were retained. These were: a sophisticated long-travel suspension, a liquid-cooled two-

stroke motor and a fully manual five-speed transmission for 19851986 models and a six-speed

transmission for the 8792 models. It was a machine exclusively designed for racing by highly

skilled riders.

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Honda responded a year later with the FourTrax TRX250Ra machine that has not been

replicated until recently. It currently remains a trophy winner and competitor to big-bore ATVs.

Kawasaki Heavy Industries responded with its Tecate-4 250.

In 1987, Yamaha Motor Company introduced a different type of high-performance machine, the

Banshee 350, which featured a twin-cylinder liquid-cooled two-stroke motor from the RD350LC

street motorcycle. Heavier and more difficult to ride in the dirt than the 250s, the Banshee

became a popular machine with sand dune riders thanks to its unique power delivery. The

Banshee remains popular, but 2006 is the last year it was available in the U.S. (due to EPA

emissions regulations); it is still available in Canada, however.

Shortly after the introduction of the Banshee in 1987, Suzuki released the LT500R QuadRacer.

This unique quad was powered by a 500 cc liquid cooled two stroke engine with a five-speed

transmission. This ATV earned the nickname "Quadzilla" with its remarkable amount of speed

and size. While there are claims of 100+ mph stock Quadzillas, it was officially recorded by 3&4

Wheel Action magazine as reaching a top speed of over 79 mph (127 km/h) in a high speed

shootout in its 1988 June issue, making it the fastest production ATV ever produced. Suzuki

discontinued the production of the LT500R in 1990 after just four years.

At the same time, development of utility ATVs was rapidly escalating. The 1986 Honda

FourTrax TRX350 4x4 ushered in the era of four-wheel drive ATVs. Other manufacturers

quickly followed suit, and 4x4s have remained the most popular type of ATV ever since. These

machines are popular with hunters, farmers, ranchers and workers at construction sites.

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Safety issues with three-wheel ATVs caused all ATV manufacturers to upgrade to four-wheel

models in the late 1980s, and three-wheel models ended production in 1987, due to consent

decrees between the major manufacturers and the Consumer Product Safety Commissionthe

result of legal battles over safety issues among consumer groups, the manufacturers and CPSC.

The lighter weight of the three-wheel models made them popular with some expert riders.

Cornering is more challenging than with a four-wheeled machine because leaning into the turn is

even more important. Operators may roll over if caution isn't used. The front end of three-

wheelers obviously has a single wheel, making it lighter, and flipping backwards is a potential

hazard, especially when climbing hills. Rollovers may also occur when traveling down a steep

incline. The consent decrees expired in 1997, allowing manufacturers to, once again, make and

market three-wheel models, though there are none marketed today. Recently the CPSC has

succeeded in finally banning three-wheeled ATV's with attachments to bill HR4040. Many

believe this is in response to Chinese manufacturers trying to import three-wheeled ATV's. The

Japanese manufacturers were also behind this legislation, as they have been held responsible for

years to provide ATV Safety training and to apply special labels and safety equipment to their

ATVs while Chinese manufacturers did not.

Models continue, today, to be divided into the sport and utility markets. Sport models are

generally small, light, two-wheel drive vehicles that accelerate quickly, have a manual

transmission and run at speeds up to approximately 80 mph (130 km/h). Utility models are

generally bigger four-wheel drive vehicles with a maximum speed of up to approximately

70 mph (110 km/h). They have the ability to haul small loads on attached racks or small dump

beds. They may also tow small trailers. Due to the different weights, each has advantages on

different types of terrain.

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Six-wheel models often have a small dump bed, with an extra set of wheels at the back to

increase the payload capacity. They can be either four-wheel drive (back wheels driving only), or

six-wheel drive.

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FINANCIAL INFORMATION OF INDUSTRY

In last FY despite of skyrocketing oil prices (crude oil price has already up to $130 compared to

$20 per barrel five years back), Indian automobile Industry was not as much affected and experts

think that Indian automobile industry will continue to grow this year despite all obstacles- oil

price hike, higher interest rates. However, the effect of inflation has affected every sector which

is related to car manufacturing and production. The increase in the price of fuel and the steel due

to inflation has led to a slower growth rate of the car industry in India. The effect of inflation has

taken the rise in the price rate of the cars by 3-4% which in turn suffices the need to meet the rise

in price of the raw materials to build a car. The car market and the car industry witnessed a fall

of 8-9%.

FDIs

In India FDI up to 100 percent, has been permitted under automatic route to this sector, which

has led to a turnover of USD 12 billion in the Indian auto industry and USD 3 billion in the auto

parts industry. India enjoys a cost advantage with respect to casting and forging as

manufacturing costs in India are 25 to 30 per cent lower than their western counterparts the

Investment Commission has set a target of attracting foreign investment worth US$ 5 billion for

the next seven years to increase India's share in the global auto components market from the

existing 0.9 per cent to 2.5 per cent by 2015. FDI inflows in Automobile Industry 2008-09 was

Rs.5,212 Cr an increase of 47.25% compare to 2007-08, while in April-May 2009 it was around

Rs.497 Cr.

Source- FDI Statistics Govt. of India

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Foreign Exchange

India holds the third largest stock of reserves among the emerging market economies after China

and Russia. The overall approach to the management of India's foreign exchange reserves in

recent years reflects the changing composition of the balance of payments and the 'liquidity risks'

associated with different types of flows and other requirements.

Source: rbi.org.in

Taking these factors into account, India's foreign exchange reserves continued to be at a

comfortable level and consistent with the rate of growth, the share of external sector in the

economy and the size of risk-adjusted capital flows. Following is the table shows the trend of

foreign reserves held by central bank in last FY. Reserves came down cause of recession all over

the world however India still able to maintain its reserves hence a minor fall was seen compare

to all other country which shows great strength in long-term for Indian Economy. Increase in

Exports especially from auto industry shows an expectations of huge income from western

countries and new $200 bl. target for exports by 2011 helps in increasing.

1. FCA (Foreign Currency Assets): FCAs are maintained as a multicurrency portfolio comprising

major currencies, such as, US dollar, Euro, Pound sterling, Japanese yen, etc. and is valued in

terms of US dollars.

2. SDR (Special Drawing Rights): Values in SDR have been indicated in parentheses.

3. Gold: Physical stock has remained unchanged at approximately 357 tonnes.

4. RTP refers to the Reserve Tranche Position in the IMF.

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Export

Society of Indian Automobile Manufacturers (SIAM), automobile sales (including passenger

vehicles, commercial vehicles, two-wheelers and three-wheelers) in the overseas markets

increased to 1.53 million units in 2008-09 from 1.23 million units in 2007-08. Export of

passenger vehicles increased from 218,401 in 2007-08 to 335,739 units in 2008-09.

There is a continuous increase in the export of automobiles since the financial year 2002-03,

except for the decline in the export of commercial vehicles in the financial year 2008-09, which

may be attributed to the global economic recession.

Despite recession, the Indian automobile market continues to perform better than most of the

other industries in the economy in coming future; more and more MNCs coming in India to

setup their ventures which clearly shows the scope of expansion.

Current Scenario of Automobile Industry in Economy With the latest available data Indian

Automobile Industry is expected to grow at 9%-10% in near future,

Two wheeler segment sales grew up by 12.8% with the modest 2.6% growth rate, under this

segment the market leader Hero Honda registered growth of 12% in its domestic sales where as

Bajaj Auto disappointed as sales plunging by 23%, on the other hand car sales has been grew up

by a healthy 22.7% in last February and Commercial Vehicles reported slower sales. It is

assumed that in coming festive season to meet demand, carmakers going to produce

70000units/month more over the average 1.3lac/month with help of 5000 new hands.

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CHAPTER-3

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DATA PRESENTATION AND ANALYSIS

Q1) Do you agree with that good ethical practices are necessary at the

time of developing marketing strategy?

a) Highly Agree b) Agree

c) Not agree d) Highly not agree

e) Dont know

Thus, it is clear that 65% people feel that the that good ethical practices are necessary at the time

of developing marketing strategy

65%

25%

0%

0%10%

ethical practices are necessary at the time of

developing marketing strategy

Highly Agree

Agree

Not agree

Highly not agree

Dont know

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Q2) Do you agree with that good ethical practices create impact on consumer

buying behavior?

a) Highly Agree b) Agree

c) Not agree d) Highly not agree

e) Dont know

Thus it is quite obvious that 59% good ethical practices create impact on consumer buying

behavior consumer

59%25%

13%

2% 1%

Imact of Consumer Buying behavior of good

ethical practices

Highly Agree

Agree

Not Agree

Highly Not agree

Dont know

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Q3) which types of ethical practices are important while making marketing

strategies?

a) Justice practices b) Integrity practices

c) Confidentiality and Privacy Practices d) Self control practices

Thus, it is clear that 43% people agree with that ethical practices are important while making

marketing strategies

34%

43%

12%

11%

Types of Ethical Practices Used In developingmarketing strategy

Justice practices

Integrity practices

Confidentiality and Privacy

Practices

Self control practices

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Q4) Do you Agree with that good ethical practices create impact on the work

effectiveness of employees in the organization?

a) Highly Agree b) Agree

c) Not agree d) Highly not agree

e) Dont know

Thus, it is clear that 55% employees feel that good ethical practices create impact on the work

effectiveness of employees in the organization

55%

20%

15%

0%10%

Imact of Etical Practices on work

effectiveness of employees

Highly Agree

Agree

Not agree

Highly not agree

Dont know

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Q5) To motivate employees value based ethical system is required do u agree

with this statement?

a) Highly Agree b) Agree

c) Not agree d) Highly not agree

e) Dont know

Thus, it is clear that 52% employees feel that themotivation is valuable for ethical system.

52%

32%

10%

4% 2%

Requirement of motivation of employees in

ethical system

Highly Agree

Agree

Not agree

Highly not agree

Dont know

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Q6) To what extent did you feel that in automobile industry which company

uses better ethical way to promote the product?

a) Marutti Suzuki b)Tata motors

b) Mahindra d) Honda

Thus, it is clear that 37% Maruti Suzukiuses better ethical way to promote the product .

37%

27%

25%

11%

better ethical practises used by automobile

companies

Marutti Suzuki

Tata motors

Mahindra

Honda

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Q7) Do you think that ethical issues are the most important part of the

marketing strategy in automobile industry?

a) Yes b) No

c) Dont know

Thus, it is clear that 40%ethical issues are the most important part of the marketing strategy in

automobile industry.

35%

40%

25%

Importance of ethical issue in automobile

industry

Yes

No

Dont know

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Q8) In automobile sector it is difficult to apply good ethical practices

perfectly, Do you agree with this statement?

a) Highly Agree b) Agree

c) Not agree d) Highly not agree

e) Dont know

55% is difficult to apply the ethical practices in automobile industry.

55%

20%

7%

5% 13%

Difficulty in applying good ethical practices

Highly Agree

Agree

Not agree

Highly not agree

Dont know

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Q9) How much do you agree with that, Is your organization promote

corporate social responsibility (CSR)?

a) Highly Agree b) Agree

c) Not agree d) Highly not agree

e) Dont know

Thus CSR is 35% important for the industry.

35%

25%

7%

10%

23%

Responsibility of CSR

Highly Agree

Agree

Not agree

Highly not agree

Dont know

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Q10) Marketing/ Sales employees satisfaction is somewhere related with the

good ethical practices, are you agree with this statement?

a) Highly Agree b) Agree

c) Not agree d) highly not agree

e) Dont know

40% employees feel satisfaction through the the use of ethical practices used in marketing

strategy of automobile industry.

40%

20%

10%

5%

25%

Sales

Highly Agree

Agree

Not agree

Highly not agree

Dont know

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CONCLUSION

Indian Automobile Industry is in the growth phase and the expected growth related to the

ethical issues to follow, and the above facts and figures in our study also support this

truth.

Indian Automobile has a lot of scope for both two wheelers and four wheelers due to

development in infrastructure of the country and especially the ethical practices demand

of two wheeler has increased. According to Indian Statistical Organization the per capita

income (Rs.38000) is increasing and national income at the rate of 14.4% which shows

potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast

that by 2016 Indian Industry will be world 7 largest manufacturers in all sections.

The Indian auto market is still untapped the majority of the people in country dont own a

four wheeler and all the major auto companies are trying to increase their sales by several

moves. Like TATA has launch NANO the peoples car and now TATA motors is also

planning to come out with an electric car as well as hybrid car, moreover in two wheeler

segment many companies like Mahindra and Mahindra grow even more than

expectations. From the Technical Analysis of both companies we come to know that the

share price of Maruti will move in the band of Rs.1275 to Rs.1425 and that of TATA

Motors will move in the range of Rs. 430 to Rs. 490 if certain correction made in the

market. We have also come to know that every company posses its own beneficial way

to promote the product by ethical issues.

By analyzing the current trend of Indian Economy and Automobile Industry we can say

that being a developing economy there is lot of scope for growth and this industry still

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have t