A RESEARCH REPORT ON THE STUDY OF CONSUMER PREFERENCE & CONSUMER PERCEPTION TOWARDS VARIOUS BRANDS OF CARS” Submitted To Kurukshetra University, Kurukshetra In the partial fulfillment for the Requirement for the degree in MASTER OF BUSINESS ADMINISTRATION SESSION (2008-2010) SUBMITTED TO SUBMITTED BY MR. RINKU AGGARWAL SANDEEP SINGH LECTURER MBA (4 TH SEMESTER) MBA DEPT. UNIVERSITY ROLL NO. SHREE RAM MULKH INSTITUTE OF MANAGEMENT AND TECHNOLOGY, KHORA BHURA (SRMIMT) (AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA)
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The Study of Consumer Preference & Consumer Perception Towards Various Brands of Cars
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A
RESEARCH REPORT
ON
THE STUDY OF CONSUMER PREFERENCE & CONSUMER
PERCEPTION TOWARDS VARIOUS BRANDS OF CARS”
Submitted To
Kurukshetra University, Kurukshetra
In the partial fulfillment for the Requirement for the degree in
MASTER OF BUSINESS ADMINISTRATION
SESSION (2008-2010)
SUBMITTED TO SUBMITTED BY
MR. RINKU AGGARWAL SANDEEP SINGH
LECTURER MBA (4TH SEMESTER)
MBA DEPT. UNIVERSITY ROLL NO.
SHREE RAM MULKH INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
KHORA BHURA (SRMIMT)
(AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA)
Life is full of interaction. In our daily life we get ahead by giving hope to each other.
When a person is doing some important work whether as a guide, helper, supporter i.e., a true
friend is needed. And one feels obliged to them.
There is always a sense of gratitude which one feels towards his/her Guru or Mentor who has
helped him/her at one point of time or the other.
I am thankful to Mr. RINKU AGGARWAL who was always there to give my spirits a
boost and whose guidance it would not have been possible for me to complete my project
report successfully.
I shall be falling in my duties if I do not express my gratitude to my friends and other persons
for their useful advice at various stages.
Last but not the least; I would like to thank the Almighty God for his blessings showered on
me during the project report.
SANDEEP SINGH
PREFACE
Marketing Management is critical to success of every organization whether small or large.
MBA students of SRM Institute of Management and Technology are required to undergo a
research project as an integral part of the curriculum. The objective is to develop ability to
apply multidisciplinary concepts, tools and techniques to solve organizational problems.
The main objective of the research project is to expose the business management students to
various functional areas of management. Any professional degree remains incomplete
without practical exposure. The students are required to develop deep into the intricacies of
the management related activities.
The training involves innovative pedagogy and through it preparing young prospective
business managers for the new millennium. Learning is like eating food. It is not how much
one eats that matters, what counts are how much you digest.
DECLARATION
I, SANDEEP SINGH student of SHREE RAM MULKH INSTITUTE OF
MANAGEMENT & TECHNOLOGY (KOHRA BHURA) here by state that the Research
Report entitled “STUDY OF CONSUMER PREFERENCE & CONSUMER
PERCEPTION TOWARDS VARIOUS BRANDS OF CARS” submitted in partial
fulfillment for the requirement of degree of Master of Business Administration. It is the
original work done by me and the information provided in the study is authentic to the best of
my knowledge. This study report has not been submitted to any other institution or university
for the award of any other degree.
SANDEEP SINGH
MBA (4TH SEM)
SRMIMT,KHORA BHURA
Table of Contents
Sr.No. CONTENT PAGE NO.
1 Acknowledgment II.
2 Preface III.
3 Declaration IV.
INDEXCONTENTS PAGE NO.
CHAPTER 1- Introduction 1 – 37
1.1. Profile of Study 1 – 35
1.2. Justification of Study
1.3. Objectives of Study
36
37
CHAPTER 2- Review of literature 37 – 44
CHAPTER 3- Research Methodology 45 – 48
3.1. Sample Design 46
3.2. Data Collection Technique 47
3.3. Analytical Tools 47
3.4. Limitations of Study 48
CHAPTER 4- Results and Suggestions 49 – 63
CHAPTER 5- Findings and Suggestions 64 – 66
5.1. Findings 65
5.2. Suggestions 66
Bibliography I.
Annexure Π – IV.
AUTOMOBILE INDUSTRY
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.
INDUSTRY OVERVIEW
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto industry
was overlooked by the then Government and the policies were also not favorable. The
liberalization policy and various tax reliefs by the Govt. of India in recent years has made
remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently
growing at the pace of around 18 % per annum, has become a hot destination for global auto
players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development of an economy,
and India is no exception to it. With the growth of transportation system the Automotive
Industry of India is also growing at rapid speed, occupying an important place on the 'canvas'
of Indian economy.
Today Indian automotive industry is fully capable of producing various kinds of vehicles and
can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.
SNIPPETS
The first automobile in India rolled in 1897 in Bombay.
India is being recognized as potential emerging auto market.
Foreign players are adding to their investments in Indian auto industry.
Within two-wheelers, motorcycles contribute 80% of the segment size.
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market.
2/3rd of auto component production is consumed directly by OEMs.
India is the largest three-wheeler market in the world.
India is the largest two-wheeler manufacturer in the world.
India is the second largest tractor manufacturer in the world.
Chevrolet Opel Corsa Maruti Zen , Wagon R, Versa, Esteem,,Ritz,A-star Ford Icon & Fiesta
Tata Indica , Indigo XL, Indigo Marina-
Rs. 5-10 Lakhs
Chevrolet Swing, Optra Magnum, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Innova Tata Safari Mitsubishi Lancer , Mitsubishi Cedia Honda City ZX Mahindra Bolero
Hyundai Sonata Embera
Rs. 10-15 Lakhs
Toyota Corolla Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia & Combi
Honda Civic
Rs. 15-30 Lakh
Honda CR-V Maruti Suzuki Grand Vitara Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra Honda Accord Mercedes C Class
Toyota Camry
Rs. 30-90 Lakhs
Audi A6, A8 & Audi TT BMW X5, 5 Series & 7 Series Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Prado
The Indian auto parts industry is significantly fragmented with a large number of players
having a turnover of less than US$10 million per year. The industry directly employs about
2,50,000 people and has an annual turnover over US$ 56.3 billion.
Estimated market size - US$ 6.7 bn
Estimated market size by 2012 - US$ 17 bn
Projected CAGR - 15%
Note: Nearly two-thirds of the auto component production is consumed directly by Original
Equipment Manufacturers (OEMs).
Market Advantage
Fast paced urbanization to rise from 28% to 40% by 2020.
Upward migration of household income levels.
Middle class expanding by 30-40 million every year.
Growing working population.
INDIAN AUTOMOBILE COMPANIES
India is the 11th largest Passenger Cars producing countries in the world and 4th largest in
Heavy Trucks.
CURRENT SCENARIO
Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies
components to global majors like Ford, General Motors and Land Rover. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in
the world.
OVERVIEW
Snippets In 1980s Hindustan Motors (HM) was leading car manufacturer in India. HM is popular with its Ambassador model. In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car." Maruti Udyog Ltd. was set up to manufacture budget cars. In 1993 foreign auto makers entered the Indian market.
Facts & Figures
The onset of automobile industry in India saw companies like Hindustan Motors, Premier
Automobiles and Standard Motors catering to the manufacture of automobiles for Indian
customers. The era, 1950s - early 1990s was known as 'license raj,' when India was closed to
the world and imports. Hindustan Motors (HM) was the leader in car manufacturing and sales
until the 1980s, when the industry was opened up from protection. HM, joint venture with
Mitsubishi produced Lancer and Pajero, but is best known for its own model, Ambassador.
Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned
the manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian
middle-class. The cabinet passed a unanimous resolution for the development and production
of a "People's Car." It was christened Maruti Limited. However, the company as Maruti
Udyog Ltd. matured only after the death of Sanjay Gandhi. The Maruti800 car went on sale
in 1983. By 1993 it sold up to 1,96,820cars
1991, the liberalisation of the Indian economy opened the market for foreign automobile
makers to venture in India. The license raj ended in 1993 and many foreign players entered
the Indian market by way of Joint ventures, collaborations or wholly owned subsidiary.
LP 407 Turbo Mini- bus LP 709 E Turbo Bus LPO 1510 CGS bus (CNG bus)
LP / LPO 1510 LP / LPO 1512 TC Turbo Bus
LP / LPO 1512 TC Turbo Bus
LPO 1610 TC RE Semi Low Floor Bharat Stage - II Bus
LPO 1616 TC Luxury Bharat Stage - II Bus
LP 1109 Bharat Stage II
Defence Tata 407 (4 x 4) Soft Top Troop Carrier
Tata 407 / (4 x2) Hard Top Troop Carrier
Tata LPTA 713 TC (4 x4)
Tata LPT 709 E Hard Top Troop Carrier
Tata SD 1015 TC (4 x4) Tata LPTA 1615 TC (4 x 4)
Tata LPTA 1621 TC (6 x6) Tata LPTA 1615 TC (4 x2)
AWARDS & ACCOLADES
2003 Awarded with the 'Golden Peacock Environment Management
Award' in the category of 'large manufacturing by the World
Environment Foundation, New Delhi.'
Won the Jamnalal Bajaj Uchit Vyavahar Puraskar for fair
business practices in the 'manufacturer - large' category,
converred by the Council for Fair Business Practices.
The commercial vehicle business unit was presented with a commendation certificate for 'Strong commitment to TQM.'
Tata Indigo was voted as the 'most exciting new car' by the ICICI Bank and Overdrive Awards.
2002 The Indian Merchants' Chamber Diamond Jubilee Endowment Trust Award was presented with the 'Industry and Technology Award.'
Tata Indica was presented with the 'voice of the customer award' for the 'best diesel small car' at NFO Automotive India.
Tata Motors, Jamshedpur, was presented with the prestigious 'Prof. Vasant Rao rolling trophy,' instituted by the Indian Value Engineering Society, in the area of value engineering.
SALES PERFORMANCE & FINANCIALS AT A GLANCE
1.FINANCIAL RESULTS:2009
Financial Year
2008-09 2007-08
(i) Gross Revenue 28599.27 33093.93
(ii) Net Revenue (excluding excise duty) 25660.79 28739.41
2000 First consignment of 160 Indicas shipped to Malta. Launch of Indica with Euro II engine, CNG buses and 1109 vehicle - Intermediate commercial vehicle.
2001 100,000th Indica wheeled out. Launch of CNG Indica. Exits JV with Daimler Chrysler.
2002 2,00,000th Indica and 5,00,000th passenger vehicle rolled out. Tata Engineering signed product agreement with MG Rover of the UK.
2004 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. signed investment agreement and Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launched NOVAS, the heavy duty truck in Korea. Listed on NYSE.
2005
2007-08
2009
5,00,000th passenger vehicle rolls out. Launch of Starbus and Globus (buses and coaches), Tata Ace (Indi's first mini truck) and Tata Novus, in India as well as in Korea by TDCV. New factory at Jamshedpur inaugurated for Novus.
THE GREAT INVENTION ------------------------------------------------- TATA NANO small car only in one lakh
Tata Xenon XT, 2009 Tata Winger,
COMPANY FLASHBACK
Tata Motors Limited is the largest automobile company in India with revenues touching to
Rs. 20,483 crores (USD 4.7 billion) in the financial year 2004-05. It leads the market in
commercial vehicles in each segment and is the second largest in the passenger vehicles
segment. Globally, Tata Motors stands fifth in the medium and heavy commercial vehicle
manufacturer category.
Established just in 1945, the company's presence cuts across the length and breadth of the
country. More than 3 million its-manufactured-vehicles ply on the Indian roads since the first
one rolled out in 1954.
This company is the first from the country's engineering sector to be listed in the New York
Stock Exchange (Sep. 2004) and has also emerged as a global automotive company.
Through its subsidiaries, Tata Motors has engaged in providing engineering and automotive
solutions. With the pace of new product development, the company has launched Tata Ace,
in the year 2005, India's first indigenously developed mini-truck.
Tata Motor's 22,000 employees are guided with the vision, "best in the manner in which we
operate, best in the products we deliver, and best in our value system and ethics."
TATA NANO
Tata Motors Ltd on Thursday wheeled out the world's cheapest car, priced at 100,000 rupees (2,500 dollars). Here are key facts about the four-door, mini hatchback named the Nano, which is due to hit the Indian market later this year. Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan Micra and the Smart.
Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high. Can seat four to five people.
Engine: A two cylinder 623 cc, 33 hour (65 miles per hour).
Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed.
Pollution: Exceeds Indian regulatory requirements and can meet strict Euro IV emission standards. In terms of overall pollutants, Tata says the car is better than two-wheelers manufactured in India currently. horsepower rear mounted, all aluminum, multi-point fuel injection petrol engine can power the car to top speeds of 105 kilometers per
Company Details: Tata Motors is India's largest vehicle company with revenues of 7.2 billion dollars in 2006-2007. It is the leader in commercial vehicles, such as trucks and buses,
and the second largest in passenger vehicles. There are over four million Tata vehicles on Indian roads.
Safety: Car exceeds current regulatory requirements with a strong passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.
Initial Annual Production Target: 250,000 units to rise later to 350,000. PRICE: Basic model price 100,000 rupees (2,500 dollars) plus tax and transport costs, which will bring on the road price to at least 120,000 rupees. The price of two deluxe models that will include air-conditioning and other features to be announced later.
Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned Suzuki Maruti stable whose base model sells for about 4,800 dollars – nearly double the price of the Nano.
Nearest International Rival: China's Chery QQ which retails for 3,600 dollars.
Sales: Tata will focus on selling the car in India for the next two to three years, before eyeing Latin American and Southeast Asian markets.
Market: India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.
FIAT INDIA PVT LTD
Fiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter of “Società
Anonima Fabbrica Italiana Automobili Torino” was signed. Among the members of the
Board of Directors, Giovanni Agnelli stood out in the group of investors and won recognition
for his determination and strategic vision. In 1902 he became the Managing Director of the
companyIn 1902 he became the Managing Director of the company. The name is an acronym
for Fabbrica Italiana Automobili Torino (Italian Car Factory of Turin). The history of Fiat
began many years ago, at the dawn of Italian industrialisation, in which the company has
always played a leading role. From that moment on, the Fiat brand spread throughout the
world and developed extensively.
Today, following a change in corporate culture and mentality, the name Fiat is still fraught
with meaning, and not only on account of the cars we produce cars with attractive styling
and exciting engines, cars that are accessible and improve the quality of everyday life - but
also on account of our heritage and tradition: let's take a stroll back in time through the
brand's history.
QUICK FACTS
Country Italy
Year of Establishment July 11, 1899 in Turin (Italy) as F.I.A.T In India a contract was signed with Premier Automobiles in 1951.
Industry Automobiles manufacturing
Business Group Fiat Auto Spa
Listings & its codes NYSE: FIA; ISE: IT0001976403
Contact Details LBS Marg, Kurla (W) Mumbai-400070
International Corporate Headquarters
Via Nizza, 25010126 Turin Italy
http:// www.fiat-india.com/
BOARD OF DIRECTORS
Luca Cordero di Montezemolo(chairman) John Elkann(Vice Chairman) Sergio Marchionne (Chief Executive Officer) Andrea Agnelli(director)
SEGMENT OF FIAT INDIA
Fiat Grande Punto
Palio 1.6 Sport
Palio 1.2 NV Petro
Palio Diesel
Petra Petrol
Petra Diesel
Fiat linea
Fiat 500
From 1899 - 1911
Fiat was founded
On 11 July 1899 at Palazzo Bricherasio, the company charter of "Società Anonima Fabbrica
Italiana Automobili Torino" was signed. Among the members of the Board of Directors,
Giovanni Agnelli stood out in the group of investors and won recognition for his
determination and strategic vision. In 1902 he became the Managing Director of the
company.
The first factory was opened
The first factory was opened in 1900 in Corso Dante. 150 workers were employed there and
produced 24 cars, among which the 3/12 HP, not yet fitted with reverse gear. The Fiat logo,
oval on a blue background and designed by Biscaretti, was adopted in 1904
First wins in the races
The first Car Tour of Italy saw 9 Fiat cars arrive at the finish line. The first real competition
car, a 24 HP driven by Vincenzo Lancia, won the Sassi-Superga uphill race in 1902.
Giovanni Agnelli himself ran in the Second Tour of Italy and set a record in an 8 HP.
In a few years Fiat completely renovated its production: the cars were fitted with electrical
accumulators for the first time. The cardan transmission, a FIAT patent, began to be used.
Fiat cars continued to shine in the competitions and set several records.
From 1912 – 1925
Fiat expands to new sectors
In the meantime Fiat expanded its activities to the steel industry, the railway, electricity and
public transportation lines. Fiat Lubrificanti was established and the first Italian subsidiary
was opened in Russia. When the War broke out, company production was almost entirely
aimed at supplying the army
Development of the Company
The policy adopted by the company was to develop industrial mass production. Mass
production was launched as the only way to curb the prohibitive prices of cars. During a
phase of increasing consumption, Sava, a holding company was set up to promote instalment
plans for purchasing cars. IFI, Istituto Finanziario Industriale, was also established at that
time.
Services for employees
These years were also significant for the internal growth of Fiat. Numerous organizations for
employees were established: from health care to specialized schools to sports clubs
From 1926 - 1938
Falling back on the domestic market
During the years of Mussolini's autarchic policy, Fiat too had to rescale its plans for
international presence and concentrate on the domestic market. In the Thirties trucks and
commercial vehicles underwent considerable technological development and at the same time
the aviation and railway sectors grew
.
The new cars
In 1934 and 1936 two cars came out and were destined to an enormous public: the "Balilla",
also called "Tariffa minima" due to its low consumption of fuel, and the "Topolino", the
smallest utilitarian car in the world, which was produced until 1955.
From 1939 - 1951
Second World War
During the war years there was a drastic reduction in the production of cars, while the
construction of commercial vehicles increased considerably.
Commitment to research
With two new cars such as the 500 and the 1400, Fiat confirmed its commitment to research
and innovation. For the first time the heating and ventilation systems were installed in mass
production. Research continued on marine and aircraft engines: in 1951 the first Italian jet
aircraft came into being, the G80.
From 1952 – 1964
Diesel
In 1953 the first Fiat diesel engined vehicle was presented, the 1400 diesel.
The new models
In 1955 the Fiat 600 was born, a big utilitarian car with a rear mounted engine. In 1957 the
New 500 was presented and in 1960 it began to be produced in the 'Giardinetta' version, a
precursor of the Station Wagon style. Moreover, these were the years of Fiat 1800, then 1300
and 1500.
From 1978 – 1990
Independent companies
Fiat's numerous operations were set up as independent companies. Alongside Fiat Auto the
following companies were founded: Fiat Ferroviaria, Fiat Avio, Fiat Trattori, Fiat
Engineering, Comau, Teksid, Magneti Marelli.
The Fiat Panda and the Fiat Uno
In 1980 a new utilitarian was styled by Giugiaro for Fiat and was called Panda. Two years
later the car that would become the emblem of Fiat Auto's renewal was born: the Fiat Uno. It
featured radical innovations in its electronics, choice of materials and the use of a clean
engine: the 1000 Fire.
From 1991 – 2003
The new cars of the 1990s
After the debut of the Fiat Tempra in 1990, the 500 came out in 1991. Two years later, in
1993, it was the moment of Fiat Punto (named "Car of the Year" in 1995) and Fiat Coupé,
with bodywork designed by Pininfarina and Centro Stile Fiat
From 2004 - 2007
The restyling of the logo on Fiat Idea The years 2004-2006 were an extremely busy time
for the Turin company, which, following a profound change in corporate culture and
mentality, focused on a continuous, rapid overhaul of its products, on technological research,
on the quality of its designs and on a new, constructive relationship with the customer.
During these years, this new philosophy gave rise to a series of new models, and some
restyling of older models: from the restyling of the Fiat Idea Model Year, Seicento MY and
Stilo MY to the new Multipla and the launch of the Panda 4x4, in 2004; 2005 began with the
launch of the new Croma, designed by Giugiaro, the new 600 (celebrating its 50th
anniversary), and the Grande Punto - beautiful, solid and exciting. 2006 saw the launch of the
New Doblò and Sedici, the 4x4xTUTTI for city and off-road driving, and the official car of
the 2006 Olympic Winter Games, while the Panda MY 2007 range was extended and
overhauled.
From 2008-2009
Super-competitive pricing with space and features promises to make it encroach upon the
Swift territory We put both petrol and diesel variants through our rigorous test program.
Punto would compete in India with existing models like Skoda Fabia, Tata Indigo...
PERFORMANCE
Company Flashback
Fiat is a big industrial Group having more than one hundred years' experience in the motor
vehicle sector, designing, manufacturing and marketing cars, trucks, tractors, agricultural
machinery, construction equipment, motor vehicle engines and components, and production
systems. Currently the Group is present in 190 countries and it performs manufacturing and
service activities through Operating Sectors that can be divided into business areas.
Fiat Auto produces and sells automobiles under the Fiat, Alfa Romeo and Lancia brands and
light commercial vehicles (LCV) under the Fiat brand. The Group also controls Maserati and
Ferrari, the producer of luxury sports cars that excel for their exclusive characteristics,
technology and performance.
In India, Fiat is wholly managed by Fiat Auto Spa of Italy. Here the company owns the
brands Fiat , Alfa Romeo & Lancia. Fiat India is investing heavily in the countr
Hyundai Motor India Limited
"Drive your way"
Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the world. Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car manufacturer in India. Santro, Getz, Accent, Elantra, Sonata Embera and Tuscon are the most successful brands of HMIL. The company is an ISO 14001 for its sustainable environment management practices.
Quick Facts
Country South Korea
Year of Establishment 1967
Listings & its codes KSE: 005380; LSE: HYUD
Retail Finance Partners HDFC Bank, ICICI Bank, Mahindra Finance, Punjab National Bank, Sundaram Finance.
Hyundai Santro has topped the JD Power Asia Pacific Intial Quality Study (IQS) that measures product quality for three years in a row (Years 2000, 2001 and 2002)
Hyundai Santro has topped the JD Power Asia Pacific APEAL study that
measures customer satisfaction for three years in a row (Years 2000, 2001 and 2002)
Hyundai Accent has topped the JD Power Asia Pacific IQS for 2002 and the APEAL study for 2001 and 2002.
Hyundai Motor India was adjudged the ‘Car Maker of the year’ at the ICICI Bank – Overdrive awards 2003
2005 No 1 Entry Midsize Car' by Accent Petrol. No 1 Entry Midsize Car' by Accent CRDi. Hyundai Getz became the 'Car of the Year' by BS Motoring. Hyundai Motor India Limited became the 'Company of the Year'
by BS Motoring. Hyundai Getz became the 'CNBC Autocar Car of the Year.'
Hyundai Elantra became the 'Best Value for Money Car' by CNBC.
2003 Hyundai Motor India adjudged as the 'Car Maker of the year' at the ICICI Bank Overdrive awards.
2002 Hyundai Santro topped the 'JD Power Asia Pacific Intial Quality Study (IQS)' that measures the product quality for three consecutive years (2000, 2001 & 2002).
Hyundai Santro topped the 'JD Power Asia Pacific Apeal' study that measures customer satisfaction for three consecutive years (2000, 2001 & 2002).
Hyundai Accent topped the 'JD Power Asia Pacific IQS' for 2002 and the APEAL study for 2001 & 2002.
Company Flashback
Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is South
Korea's largest car maker. It is headquartered in Yangjae-Dong Seocho-Gu Seoul. HMC is
also the world's sixth largest car maker and operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea.
In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly
owned subsidiary of Hyundai Motor Company and is the second largest and the fastest
growing car manufacturer in India. Currently the company markets 32 variants of passenger
cars in six segments. Santro in the B segment, Getz in the B+, the Accent in the C segment,
Elantra in the D segment, Sonata Embera in the E segment and the Tucson in the SUV
segment.
HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over previous year. It is the country's fastest growing car company having rolled-out
10,00,000 cars in just 90 months since its inception and is the largest exporter of passenger
cars with exports of over Rs. 1,800 crores. The company has recorded a growth of 27.2% in
exports over the year 2004.
The company has been awarded the benchmark ISO 14001 certification for its sustainable
environment management
1.2 Justification of Study
Project aims to understand and enunciate the working process of different automobile and
evaluating its outcome in the four- wheeler automobile sector. Over the past few years, there
has been tremendous progress made around the world in opening up travel and tourism
markets to the benefits of increased competition.
One of the main aspects of the project is to analyze the different products and services offered
and initiatives adapted by the four- wheeler automobile sector their product. Selling
“intangible assets” is one of the toughest jobs in the world. The project is more of a team
effort and will incur team returns.
1.3 OBJECTIVE OF STUDY
The main objective is to find out the current trend going on in the industry i.e. (about the
product, price, place and promotion). This research aims at studying the. THE STUDY OF
CONSUMER PREFERENCE & CONSUMER PERCEPTION TOWARDS VARIOUS
BRANDS OF CARS.
Other objectives are as follows:
To know the image of product in the mind of consumer.
To compare the level of satisfaction before purchasing and after purchasing the car.
To know the most popular media for advertisement .
To check the loyalty of the consumer towards the brands.
To know the most motivating factor for purchasing the four –wheeler.
To know the preferable price from the customer.
To study their attitude toward various Cars brand.
To find out the perceived positioning of different Car Brands.
To know out the choice criteria which the customer while purchasing a Car.
REVIEW OF LITERATURE
Relevant literatures pertaining to the present study on four wheeler automobile industry are
included in this chapter. The literatures are helpful for proper understanding the four
wheeler automobile industry and its various related aspects. Review of literature is also
helpful in effectively fulfilling the objectives for which the research project has been
undertaken.
G.S. Dangayach and S.G. Deshmukh, in their study on ‘Advanced manufacturing
technologies: evidences from Indian automobile companies’ in International Journal of
Manufacturing Technology and Management, reports the findings of an exploratory survey
on ‘Advanced manufacturing technologies (AMT)’ administered in Indian automobile
companies. The objective of the survey is to assess the status of advanced manufacturing
technologies, identify advanced manufacturing technologies relevant to Indian automobile
sector companies, identify competitive priorities, and assess the degree of investment in
advanced manufacturing technologies. Responses from 68 companies are analysed and
presented.
RNCOS industry in their study of Indian Automobile Sector provides a forecast and
analysis based on various macro- and microeconomic factors, sector and industry specific
databases, and an in-house statistical and analytical model. This model takes into account the
past and current trends in an economy, and more specifically in an industry, to bring out an
objective market analysis. In this research main topics covered are: Study of the Indian
automobile industry structure, Analysis of performance of industry sub-segments and their
future outlook, Understanding the Indian auto component market and its growth aspects,
Identification of future prospects for the Indian automobile industry.
S. Saraswathi undertook a study on ‘Customer Satisfaction on Post-Sales Service with
Reference to Four-Wheeler Automobile Industry’ which reveals that the key to success of
automobile industry lies not only in having good products but also in being able to provide
the customer with the level of service they desire. Because of increasing competitiveness in
the Indian automobile industry, almost all automobile manufacturers have invested valuable
resources on customer satisfaction as a tool to understand the needs and expectations of their
customers. Increased presence of four-wheeler vehicles throughout the country has created a
growing need for providing service infrastructures closer to the customers' homes or offices.
Dr V Sumantran (Executive Director-Passenger Car Business Unit and
Engineering Research Centre at Tata Motors Limited during November 2001 to
August 2005, conducted a study on ‘The Indian Auto Industry & The Role of Dealers’
which reveals that the global auto industry has been the subject of much analysis in recent
years. While global capacity creation proceeds at a good clip on one hand, continued capacity
creation in the face of sluggish sales have led to depressed levels of capacity utilization.
Today, the Indian auto industry is one of the largest industrial sectors with a turnover that
contributes to roughly 5 per cent of India's GDP. More importantly, it contributes to
employment of over 2 million people directly and indirectly to another 10 million. The
industry is important for national policy in that it contributes 19 per cent of indirect taxes.
Akie Takeuchi, Maureen Cropper and Antonio Bento in the Journal of Regional Sciences
published a paper on ‘The impact of policies to control motor vehicle emissions in Mumbai,
India’ which examines the impacts of measures to reduce emissions from buses, cars, and
four-wheelers in Mumbai, India. They have considered three possible policies: conversion of
diesel buses to CNG, an increase in the price of gasoline and a tax on vehicle ownership.
In The Wall Street Journal, India Infoline Sector Reports published a report on
Automobile- Indian four Wheelers Industry which reveals that India is the second largest
manufacturer and producer of four-wheelers in the world. It stands next only to Japan and
China in terms of the number of four-wheelers produced and domestic sales respectively.
This distinction was achieved due to variety of reasons like restrictive policy followed by the
Government of India towards the passenger car industry, rising demand for personal
transport, inefficiency in the public transportation system etc
Dr. Amit Kumar Dwivedi and Mr. Punit Kumar Dwivedi, in their article on Automobile
Sector: Industry Vs Indian Middle Class in Indian MBA concluded that that there are great
opportunities and possibilities in the automobile sector. But hike in the fuel price is
influencing the market of this industry.
There is a need of a very liberal policy for the fuel prices and requires a great good deal with
fuel supplying countries. Though, the performance of the industry is better instead of high
and unfavourable fuel policy.
The new launching of Tata's Nano 'One Lakh Car' which is also known as People's Car is also
a very good strategy to capture the middle class customers. Introduction of Nano and Bajaj
Lite will definitely affect the growth and sales volumes of cars which will also affect the
industry by reaching, catching the Indian middle class and fulfilment of their own car need.
Sunila George, Raghbendra Jha, Hari K. Nagarajan in their research paper on ‘The
Evolution and Structure of the four-wheeler Industry in India’ studied the evolution of the
competitive structure of the two-wheeler industry in India. The evolution of the industry's
competitive structure is traced using Kendall’s Index of Rank Concordance and the Evans-
Karras test of convergence. The industry seems to be characterized by oligopoly with the
onset of economic reforms not making much difference to industrial structure. Convergence
of sales and capacity at the level of the industry is conditional while it is absolute at the level
of the segment.
Dr A. Subbiah and S. Jeyakumar (Ph.D research scholar at PG and Research Department
of Commerce) in their market survey report on Automobiles: the Engines of Economic
Growth concluded that A sound transportation system plays a pivotal role in a country’s rapid
economic and industrial development. The well-developed Indian automotive industry ably
fulfils this catalytic role by producing a wide variety of vehicles. They also studied Size and
structure of the Indian automotive industry, production trends and exports trends. They also
concluded that the manufacturers must take necessary steps to increase the production of
automobiles in India. They should adopt latest technology and introduce new models to face
stiff competition from foreign manufacturers.
CONSUMER PREFERENCE
Consumer Preference is a business term which is used to capture the idea of measuring how
satisfied an enterprise’s customers are with the organization Efforts in a market place.
Every organization has customers of some kind. The organization provides products (goods
and services) of some kind to its customers through the mechanism of a marketplace. The
products the organization provides are subject to competition whether by similar products or
by substitution products. The reasons on organization is interested in the satisfaction of its
customers is because customers purchase the organization’s products. The organization is
interested in retaining its existing customers and increasing the number of its customers.
By Fareena sultan:-Examines consumer preferences for forthcoming technological
innovations. Studies consumer response to different levels of technology over time. Looks at
preferences for existing and intermediate technologies when future ones are expected.
Focuses on technological consumer durables that are expected to evolve over time. The
primary contributions of this research are: an understanding of how consumer preferences for
a technology are affected by the time of adoption; an understanding of the value to consumers
of obtaining different levels of a technology, at different points in time; and the utilization of
parsimonious indices to assess consumer response to different levels of technology over time.
An empirical examination is conducted for high definition television (HDTV). Using survey
data, the study explores consumer preferences for HDTV, and for interim television
technologies. Managerial implications to aid product design, and the timing of introduction of
evolving technological innovations, are also discussed.
HOW COMPANIES FIND CONSUMER PREFERENCES
Companies routinely test the market to find out what customers like and dislike about
their products and competitors' products. This is usually done by an internal marketing
department or outsourced to a market research firm. Phone interviews, paper surveys,
electronic surveys, focus groups and consumer samplings are common methods for
gathering information.
Market Research Example
Here is a popular example of market research: A customer has finished shopping and
paying for merchandise at a local grocery store. Before handing the receipt to her, the
cashier points to and explains that she has been invited to participate in a short survey
about her visit. If she chooses to participate, she will receive $5 off her next visit and a
chance to win a large monetary grand prize.
HOW COMPANIES USE THIS INFORMATION
After gathering information, the next step for the company is to determine what it means.
Analysis of the information may lead the company to change the formula, packaging,
color, size or some other feature of the product. In the case of the suds in the shampoo,
the manufacturers may find that customers are continuing to prefer and associate the
foamy lather with high quality cleanliness, leading them to keep the same formula or
decide to add even more of the sudsing agent.
CONSUMER BEHAVIOUR
In today’s challenging and competitive world of last changing technology, consumer tastes
are also characterized by fast changes. So to survive in the market the firms have to be in
touch with the changing consumer preferences. Marketers have to understand the consumer
behaviour and factors influencing the buying behaviour of the customers in order to be
successful in this dynamic and competitive environment.
Meaning of Consumer Behaviour:
Consumer Behaviour is the behaviour that the consumer display while searching for,
evaluating, purchasing and disposing off products and services that they expect will satisfy
their needs. Consumer behaviour is the study of how consumer makes their decisions to
spend their resources on consumption related items i.e. time, efforts and money.
Study of consumer behaviour proves the marketers an insight regarding the consume
preferences and helps them in effective market segmentation and targeting. The importance
of consumer behaviour lies in the fact that behaviour can be understood and influenced to
ensure a positive purchase decision. So a round understanding of consumer behavior is
necessary for long run success of any marketing program. That’s why the marketing
managers interest lies exactly in understanding consumer behavior to ensure that his
marketing strategy results in purchase of the product.
Deborah J. Macinnis A notable human capacity is the ability to look to the future and
aspire to achieve desired states The marketplace provides rich sources of hope and invites us
to the endless pursuit of happiness. while some researchers recognize its importance,
definitions in the psychology, sociology, philosophy, medical, and religion literatures often
conceptualize hope in different ways. Understanding Hope and its Implications for
Consumer Behavior sheds light on the relevance and importance of hope to consumer
behavior. The authors explore the conceptual meaning of hope and a definition of hope and
the constituent elements that underlie it is articulated.
DETERMINANTS OF CONSUMER BEHAVIOUR
The study of consumer behaviour is quite complex, because of many variables involved and
their tendency to interact with and influence each other. The main determinants of consumer
cost, 15% says that fuel efficiency and 5% says that finance scheme.
Effect of PRICE on Purchase Decision
Price 40
Performance 25
Resale value 10
Maintenance cost 5
Fuel efficiency 15
Finance scheme 5
Interpretation: 65% are strongly agreed, 35% are agreed and others gave no
response.
Effect of FUEL EFFICIENCY on Purchase Decision
Strongly
Agree
Agree N. A. nor
Disagree
Disagree Strongly
Disagree
Price 65 35 0 0 0
Interpretation: 75% persons are agreed, 15% are strongly agreed, and 10%
have no response.
Effect of Resale Value on Purchase Decision
Strongly
Agree
Agree N.A nor
Disagree
Disagree Strongly
Disagree
Fuel
Efficiency
15 75 10 0 0
Interpretation: mostly 85% persons are agree, 5% are strongly agree, 5%
are disagree and 5% gave no response.
Effect of MAINTAINANCE COST on Purchase Decision
Strongly
Agree
Agree N..A nor
Disagree
Disagree Strongly
Disagree
Resale
Value
5 85 5 5 0
Interpretation: 55% are agree, 35% give no response, and 10% are strongly
agree.
Effect of PERFORMANCE on Purchase Decision
Strongly
agree
Agree N.A nor
Disagree
Disagree Strongly
Agree
Maintenance
Cost
10 55 35 0 0
Interpretation: 45% are strongly agreed, 50% are agreed, and 5% gave
no response.
Effect of FINANCE SCHEME on Purchase Decision
STRONGLY
AGREE
AGREE N.A NOR
DISAGREE
DISAGREE STRONGLY
DISAGREE
Performance 45 50 5 0 0
Interpretation: 25% are strongly agreed, 40% are agreed, 15% gave no
response and 20% are strongly disagree.
Ranking of cars after considering all attributes
Strongly
Agree
Agree N.A nor
Disagree
Disagree Strongly
Disagree
Finance
Scheme
25 40 15 20 0
Maruti 60
Hyundai 25
Tata 15
Fiat 0
Interpretation : Maruti is at first Rank, Hyundai is at 2nd Rank and TATA is
at third Rank, FIAT is at fourth Rank.
MARUTI
Very High Satisfactory Low Very
High Low
Price 10 65 10 15 0
Fuel
Efficiency
15 55 25 5 0
Resale value 20 40 40 0 0
Performance 20 55 25 0 0
Maintenance
cost
5 10 60 15 10
Finance
Scheme
0 40 30 30 0
HYUNDAI
Very
High
High Satisfactory Low Very
Low
Price 25 65 10 0 0
Fuel
Efficiency
30 45 25 0
Resale value 25 45 30 0
Performance 5 30 55 10 0
Maintenance
cost
55 35 10 0
Finance
Scheme
5 40 50 5 0
TATA
Very
High
High Satisfactory Low Very
Low
Price 30 40 20 10 0
Fuel
Efficiency
10 35 45 10 0
Resale value 0 10 30 40 20
Performance 0 35 55 10 0
Maintenance
cost
15 45 30 10 0
Finance
Scheme
10 30 40 10 10
FIAT
Very
High
High Satisfactory Low Very
Low
Price 20 70 10 0 0
Fuel
Efficiency
5 25 60 10 0
Resale value 0 0 25 65 10
Performance 0 5 80 15 0
Maintenance
cost
10 55 30 5 0
Finance
Scheme
10 30 55 0 5
5.1 FINDINGS
In the survey , we included people from three areas – students, servicemen and
businessmen.The findings of the research shows –
Among the five attributes ( which we considered important for customers’
purchasing decision ) customers gave highest consideration to looks and style
followed by the mileage. Other attributes like comfort, service and spares were
considered later.
Normally, all the three segments maintained their car single handed and the
students and the servicemen serviced their car regularly but the businessmen
were a little hesitent in their servcing of the cars.
Electronic media ( TV) is the most commonly used medium for the brand
awareness. Other medias like magazines, newspaper, hoardings came later.
The most important finding is that brand advertising for maruti is much more
than any other brand and is quickly picking up the interest of the cosumers and
hence coming with a larger market share. May be it could overcede Huyandi in a
couple of days to come.
5.2 Suggestions
Car companies should give more focus on making effective Advertisements.
As people prefer price, performance, less price car should be availed in the market with effective performance, fuel efficiency etc.
Company should provide effective finance scheme by which their customer group can be increased.
Fiat should increase brand awareness + promotional activities among people , TATA should work upon reducing maintenance cost , increase other attributes performance fuel efficient etc.
Hyundai should work upon increasing performance, fuel efficiency by which its resale value can be increased.
Maruti should try to maintain its market by continuously providing good attributes, also should introduce less price cars.
BIBLIOGRAPHY
BOOKS
Schiff man Leon G & Kanuk Lesie Lazar, “Consumer Behavior” 4th ed.; Prentice-
Hall of India pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.
Kotler Philip, “Marketing Management” ed. 2002; Prentice-Hall of India pvt ltd, M-
97, Connaught Circus, New Delhi-110001, India.
Keller Kevin Lane, “Strategic Brand Management” ed.2003; Prentice-Hall of India
pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.