ACKNOWLEDGEMENT

No presentation is the work only of the author. I owe much to the people who have played

significant role in the development of the project . I have immensely benefited from the

comments, observations made by several individuals including Dr. Vishal jain, Head of

Department

My special thanks to Mrs. Maya Lohani(Senior Lect.) & Ms. Swati Verma(Lect.) for the

guidance in preparing this project report.

1

PREFACE

This project is the result on “Analysis of four wheeler industry”

Project work is an integral part of the MBA course. This practical experience helps the student to the real business world closely, which in turn widely influences his/her concepts and perfection.

The Marketing play an important role in accomplishing the objectives of the organization. If the

market research is not properly done, the organization will not be able to accomplish desired

results. Therefore organization try to meet the needs of their consumers as fully as possible to

contribute their maximum for the achievement of the business objective.

The project assigned was Analysis of four wheeler industry. I personally met

all the respondents for getting all the information.

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EXCUTIVE SUMMRY

The present study is about the four wheeler industry.The aim of the study is to know the

consumer preference about the various products of four wheeler. Consumers have higher

expectations than ever before. They want products to match these expectations. They also want

accurate, up-to-date and useful information about what they buy. In short, consumers want the

facts. This growth of consumer power is known as consumerism.

In the area of fast moving consumer goods (FMCG), marketing has become a specialized and

complex process. When developing products, organizations try to meet the needs of their

consumers as fully as possible. This is vital if they want to do better than their competitors. This

process of development around the needs of its consumers is called marketing orientation.

3

TABLE OF CONTENT

1. Introduction of companya. Product detail, Historical perspectiveb. Marketing planningc. Comparison of market-market share, growth rate

2. Market segmentation Target market

a. Mass marketing strategyb. Concentrate marketing strategy

3. Marketing Research Sales analysis

a. Types of consumer that constitute the potential marketb. Size & location of marketc. Growth and concentration of marketd. Consumer preference for particular brand

4. Management Decisiona. Pricing policy of companyb. Distribution channel of product

Direct marketing Whole seller & retailer

c. Whole seller-Retailer-Customer5. Sales promotion strategy

a. Publicityb. Advertisingc. Personal

6. Customer behavioura. Product adoptionb. Customer satisfaction

7. SWOT analysisFormulation Implementation & evaluation of market strategy

8. ConclusionSuggestion & Recommendation

4

INTRODUCTION OF FOUR WHEELER INDUSTRY

BIRTH OF THE CAR

5

The birth of the car as we know it today

occurred over a period of years. It was only in 1885

that the first real car rolled down on to the streets. The

earlier attempts, though successful, were steam

powered road-vehicles.

The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain

speeds of upto 6 kms/hour. In 1771 he again designed another steam-driven engine which ran so

fast that it rammed into a wall, recording the world’s first accident.

In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was

subsequently used by him to develop the world’s first vehicle to run on such an engine, one that

used a mixture of hydrogen and oxygen to generate energy.

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

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

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

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

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

The next major leap forward occurred in 1885 when the four stroke engine was devised.

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

created his own engines which he used both for cars and for the first four wheel horseless

carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own

advanced tri-cycle which proved to be the first true car. This car first saw the light of the day in

1886.

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

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

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

6

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

catapulted his vehicle, Model T Ford to the pinnacle of fame. Continuing with his innovations,

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

techniques of the automobile industry.

The modern car, therefore comes from a long list of venerated ancestors, and its lineage

will, hopefully

ADVENT OF CARS IN INDIA

From the singsong rhythm of the bullock cart to the

jet-age, India has traveled a long way. An average Indian’s

dream car may not be the design-savvy Honda or the stately

limousine, but he sure can dream, and afford, the Maruti now.

It was in 1898 that the first motorcar rode down India’s roads.

From then till the First World War, about 4,000 cars were

directly imported to India from foreign manufacturers. The

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

these merchants were quick to pounce upon.

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

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

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

first car only in 1949.

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

utility vehicles, namely the American Jeep.

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

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

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

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

Since the 80s, the Indian car Industry has seen a major resurgence with the opening up of

Indian shores to foreign manufacturers and collaborators.

The 90s have become the melting point for the car industry in India. The consumer is king. He

is being constantly wooed by both the Indian and foreign manufacturers. Though sales had taken

a dip in the first few months of 1999, it is back to boom time. New models like Maruti’s Classic,

Alto, Station Wagon, Ford’s Ikon, the new look Mitsubishi Lancer are all being launched with an

eye on the emerging market.

In these last years of the millennium, suffice it is to say that Indian cars will only grow from

strength to strength.

EVENTS AND MILESTONES

A behind- the- scenes look into the making of one of

India's most vibrant industries. The landmarks along the way...

1928- The first imported car was seen on Indian roads

1942- Hindustan Motors incorporated

1944- Premier automobiles started

1948- First car manufactured in India

1953- The Government of India decreed that only those firms which have a manufacturing

program should be allowed to operate

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1955- Only seven firms, namely, HM, API, ALL, SMPIL, PAL, M& M and TELCO received

approval.

1960 - 1970 - The two, three wheeler industry established a foothold in the Indian scenario.

1970 - 1980 - Not much change was witnessed during this period. The major factors affecting the

industry were the implementation of the MRTP Act( Monopolies and Trade Restrictive Practices

Act), FERA (Foreign Exchange Regulation Act) and the Oil Shock of 1973 and 1979.

1980 - 1990 - The first phase of liberalization was announced by the Govt. -With the

liberalization of the Government's protectionist policies, the advantages hitherto enjoyed by the

Indian car manufacturers like monopoly, oligopoly, slowly began to disappear.

This period is also marked by the entry of a large number of firms in the market. 4

Japanese manufacturers entered the Commercial Vehicle and Two- Wheeler market.

The Government agreed to the demand for allowing foreign collaboration in the

automobile sector

The industry witnessed a resurgence due to major policy changes like relaxation in

MRTP and FERA, delicensing of some ancillary products, broad banding of the products and

modification in the licensing policy. Also, the concessions it gave to the private sector and the

new foreign collaboration policy, all resulted in higher growth and better performance of the

industry than in the earlier decades.

The Government of India tied up with Suzuki Inc. of Japan which produced India's most

successful car- the Maruti.

1991 - Under the Govt.'s new National Industrial Policy, the license raj was dispensed with, and

the automobile industries were allowed to expand freely.

1993 - With the winds of liberalization sweeping the Indian car market, many multinationals like

Daewoo, Peugeot, general Motors, Mercedes-Benz and Fiat came into the Indian car market.

9

1997 - The National Highway Policy was announced which will hopefully have a positive impact

on the automobile industry. The Government also laid down the emission standards to be met by

car manufacturers in India in the coming millennium. There were two successively stringent

emission levels to be met by April 2000 and April 2005, respectively. These norms were

benchmarked on the basis of those already adopted in Europe, hence the names Euro I

(equivalent to India 2000) and the Indian equivalent of Euro II.

1999 - The Hon’ble Supreme Court passed an order directing all car manufacturers to comply

with Euro I emission norms (India 2000 norms) by the 1st of May, 1999 in National Capital

Region(NCR) of Delhi. The deadline was later extended to 1st June, 1999.

HISTORY OF FOUR WHEELER INDUSTRY

10

The Indian automobile component industry has finally begun to emerge on its own. It has

begun to take major steps towards making world class Quality Systems by imbibing the ISO

9000/QS 9000 Quality Systems. Exports have been to the tune of 10% of output in the last

decade.

Exports grew from US$296 in 1995-96 to US$311 in 1996-97. The principal export items

included tractor parts, motorcycle parts, piston rings, fuel injection parts, radiators, headlamps,

auto bulbs etc.

However, this section has been long neglected and does not get the due it deserves. We

end these lacunae by putting up a whole segment on this important industry. read on about

details on the major auto parts, their dealers, the places they are manufactured...

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MAJOR PLAYER IN FOUR WHEELER

Bajaj Auto Daewoo Motors Eicher Motors Ford

General Motors

Hero Honda Hero MotorsHindustan Motors

Hyundai Ind Auto Ltd.Kinetic Engineering

LML

MahindraMaruti Udyog Ltd.

Royal Enfield Telco

TVS SuzukiSwaraj Mazda Ltd.

Volvo DC Designs

These are the companies that bring to us our dream machines. This is where it all starts

from; the bourgeoisie Maruti 800, the upmarket Astra, the stately Mercedes, the 'Indian' Indica,

the racy Hero Honda, the Tata truck and the rest.

Wend your way through the automobile companies, their history and product lines. Find

out hitherto unknown facts about the vehicles you use. Did you know that the Hindustan Motors

was the first vehicle manufacturing company to be set up in India? And it is the same Hindustan

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Motors which manufactures both the sturdy Ambassador and the elegant Lancer, in association

with Mitsubishi of course.

We present information on all the manufacturers that are part of the Indian automobile

industry. Make this your one stop auto info bank.

MARKETING PLANNING

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Our employees are our greatest strength and asset. It is this underlying philosophy that has

moulded our workforce into a team with common goals and objectives. Our Employee-

Management relationship is therefore characterised by:

Participative Management.

Team work & Kaizen.

Communication and information sharing.

Open office culture for easy accessibility

To implement this philosophy, we have taken several measures like a flat organisational

structure. There are only three levels of responsibilities ranging from the Board Of Directors,

Division Heads to Department Heads. Other visible features of this philosophy are an open

office, common uniforms (at all levels), and a common canteen for all.

This structure ensures better communication and speedy decision making processes. It also

creates an environment that builds trust, transparency and a sense of belonging amongst

employees

VISION OF THE FOUR WHEELER COMPANY

The Leader in

The Indian AutomobileIndustry,

Creating Customer Delightand Shareholder's Wealth;

A pride of India.

Our Core values:

Customer Obsession

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Fast, Flexible and First Mover

Innovation and Creativity

Networking and Partnership

Openness and Learning

ASSOCIATIONS

Society of Indian Automobile Manufacturers (SIAM)

The Society of Indian Automobile Manufacturers (SIAM) is the apex national association

representing the Auto Industry...

The Automotive Component Manufacturers Association of India(ACMA)

The Automotive Component Manufacturers Association of India (ACMA), with a

membership of over 365 companies, has been the Indian auto component industry's

spokesman for the last 38 years.

The Western India Automobile Association (WIAA)

The Western India Automobile Association (WIAA) was founded on October 15th 1919

and today is the largest and the oldest motoring body with over forty-eight thousand

members and a network of 7 branches in 4 states of Western India.

Federation of Automobile Dealers Associations (FADA)

This is the first Indian Association formed by the dealer community in January 1964 and

signified the urge of India's automobile dealer community to have their own identity and

a national organization of their own.

Association of International Automobile Manufacturers, Inc (AIAM)

15

Members of the Association of International Automobile Manufacturers, Inc. (AIAM) distribute world-class passenger cars, multipurpose passenger vehicles, and light trucks in the United States.

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COMPARISION OF MARKETMarket Share of Company & Growth Rate

It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies.

Notable current relationships include:

Daimler AG holds a 20% stake in Eicher Motors, a 10.0% stake in KAMAZ, a 10% stake in Tesla Motors, a 6.75% stake in Tata Motors and a 3.1% in the Renault-Nissan Motors alliance. They are in the process of selling back their 40% stake in McLaren Group. This process will be finalized in 2011.

Dongfeng Motor Corporation is involved in joint ventures with several companies in China, including: Honda, Hyundai, Nissan, Nissan Diesel, and PSA Peugeot Citroen.

Fiat holds a 85% stake in Ferrari and a 20% stake in Chrysler, that can be increased to 35%; with the option of increasing its stake further.

Ford Motor Company holds a 13.4% stake in Mazda and an 8.3% share in Aston Martin.

Geely Automobile holds a 23% stake in Manganese Bronze Holdings.

General Motors and Shanghai Automotive Industry Corporation (SAIC) have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile.

General Motors and Toyota Motor Corporation have a joint venture in New United Motor Manufacturing, Inc.

Hyundai Kia Automotive Group holds a 38.67% stake in Kia Motors, down from the 51% that it acquired in 1998.

MAN SE holds a 17.01% voting stake in Scania.

Porsche Automobil Holding SE has a 50.74% stake in Volkswagen Group. Due to liquidity problems, Volkswagen Group is now in the process of acquiring Porsche.

Renault-Nissan Motors have an alliance involving two global companies linked by cross-shareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares. The alliance holds a 3.1% share in Daimler AG.

Renault holds a 25% stake in AvtoVAZ and 20.5% of the voting stakes in Volvo Group.

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Toyota holds a 51% stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of Subaru.

Volkswagen Group and FAW have a joint venture.

Volkswagen Group and Shanghai Automotive Industry Corporation (SAIC) have a joint venture in Shanghai Volkswagen Automotive.

Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 29% stake in MAN SE.

Volkswagen Group has a 49.9% stake in Porsche AG. Volkswagen is in the process of acquiring Porsche, which will be completed in mid-2011.

Volkswagen Group has a 19.9% stake in Suzuki, and Suzuki has a 5% stake in Volkswagen.

COMPANY EXTERNAL ENVIRONMENT

The Television industry is witnessing a spate of new channels being launched every year. FOUR

WHEELER is also penetrating into the rural areas and is a promising segment. Homes with FOUR

WHEELER s are expected to grow from 112 million to 200 million in a few years.

Current size: Rs 55,800 crore

Projected size by 2010: Rs 84,700 crore

CAGR: 21%

India boasts of being the third largest television market in the world today. And cable

penetration (pay FOUR WHEELER market) is expected to grow from the present 70 million

to all FOUR WHEELER homes. More than 350 channels (paid and free) are available to

viewers in India today.

The fact that 40 per cent households of India are still without television connectivity highlights

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the scope of growth in the segment. The majority of the revenue generated in the television

industry is through advertisements, followed by subscriptions. The Indian television

advertisements market is currently valued at about US$ 1,067 million and is expected to grow

at a rapid rate with the increase in the number of channels and the television viewers. Over the

next five years, the subscription revenues are poised to be the growth driver of the Indian

television industry. The number of pay FOUR WHEELER homes and the increased

subscription rates will increase the subscription revenues. The spread among the lower- income

groups is very low and offers a wide scope for growth. The Indian television industry is

currently being dominated by Star India, which is the top player in the sector at present.

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MARKET SEGMENTATION

TARGET MARKETING

20

1. Mass Marketing

2. Concentrate Marketing

INTRODUCTION: - The market for any product is normally made up of several segments. A ‘market’ after all is the aggregate of consumers of a given product. And, consumer (the end user the end user), who makes a market, are of varying characteristics and buying behavior. There are different factors contributing for varying mind set of consumers. It is thus natural that many differing segments occur within a market. In order to capture this heterogeneous market for any product, marketers usually divide or disintegrate the market into a number of sub-markets/segments and the process is known as market segmentation. Thus we can say that market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that difference between buyers within each segment is as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment. Through segmentation, the marketer can look at the differences among the customer groups and decide on appropriate strategies/offers for each group. This is precisely why some marketing gurus/experts have described segmentation as a strategy of dividing the markets for conquering them.

MARKETING STRATEGY AND MARKET SEGMENTATION: - When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).

This caselet illustrates the strategy followed by Maruti Udyog Limited (MUL), India’s largest car maker, when confronted with intense competition from foreign players. It highlights the promotional offers undertaken by MUL in its quest for market dominance. The caselet examines how the company aligned itself to the changing market requirements, through promotional offers, and reached out to potential customers. Finally, the caselet throws light on how MUL entered the pre-owned/used car market in India.

However, things changed in the 90’s with the entry of domestic as well as overseas companies

into the automobile market, especially with the entry of Hyundai Motor India Ltd., the fully

21

owned subsidiary of Hyundai Motor Co., Korea, and Tata Engineering of the Tata Group.

Hyundai's 'Santro' model endorsed by popular actor Shah Rukh Khan proved to be a major

success. This resulted in a sharp decline in the sales volumes of the Maruti 800

Maruti make his segmentation on the mass basis

BMW was done concentrate marketing

22

MARKET RESERCH

23

THEORY OF RESEARCH METHODOLOGY

This is chapter explain various methods & techniques used in this research

study with their suitability. This part of the research report is very much important

because it explain the methods; concept&procedures followed by the researcher

study the problem. It is helping to the reader to understand whole the easily.

As marketing research does not address itself to basic or fundamental

question. It does not quality as basic research on the country, It tackles problem,

which seem to have immediate commercial potential. In view of this major

consideration. Marketing research should be regarded as applied research. We may

also say that marketing research is of both types-problem solving and problem

oriented.

Marketing research is a systematic and objective study of problem pertaining

to the marketing of goods and service.It may be emphasized that is it not restricted

to any particular area of marketing but is applicable to all its phases and aspects

The American Marketing Association (AMA) has defined Marketing

research follows Marketing research is the function which the consumer, Identify

and define marketing opportunities &problems; generate, refine and Evaluate

marketing actions; monitor marketing performance; and improve Understanding of

a market as a process.

Marketing Research specified the information required to Address these

issues; designs the method for collecting information. Managers and Implements

the data collection process; analyses the results; the Communications the findings

and their implications.

24

RESEARCH DESIGN

“A research design in the specification of methods and procedures for

acquiring the needed information it is the over all operational pattern of frame

work of the project that stipulates what information is to be collected from which

sources by what procedures”

To achieve objectives of my project study I have selected the exploratory

research & also the causal research.

METHOD Of DATA COLLECTION

There are two types of data

Primary data: -

“Primary data is the data which is collected by the research at first hand.”

Sources

To collect primary data the questionnaire system is uses through market

survey.Structured non disgusisd questionnaire is applied in which question

question are listing in prearranged on paper and where the object of inquiry is

revealed to the respondent I have contected the customer and interviwed them by

personally & by telephones.The analysis of the collected data through

questionnaire is given in the later part of the project.

Secondary data

25

“Secondary data whether internal or external is the data already collected by

others for propose other then solution of the problem at hand”

Secondary sources are

Internal sources:

Internal guide

(Prof Vasudev Modi)

Sales executive of the Dhru Motors

External sources

Various marketing books

www.maruti udhyog.com

PRE-TESTING

A pre- testing is small-scale replica of the main study. it dresses a rehearsal and

provides guidance on the following matter.

1. The adequacy of the sampling frame to be followed for the survey.

2. It helps the researcher in selecting the data collection method.

3. It gives prior knowledge about the population to be sampled.

4. The pre0testing helps the researcher in checking the validity of the

questionnaire and in redesigning of the same.

5. It also provides training to the researcher for interviewing.

SAMPLING PLAN

26

A number of decision & task are include in sampling and it is the procedure

required right from defining a population selection of sample element.

Define the population: -

The population id defined in terms of Element, Sampling units, Extent ,Time

Element: -Owner of Maruti four wheeler

Sampling unit: -Businessman,Professional,salaried,student.

Extent: -Surat city

Time: -15th January to 15th March,2004

Sampling Frame

I have taken whole Surat city as sample frame for conducting research.

Sampling Method

I have used proportionate random sampling to select the respondent from the entire

population

I have conducted a pilot survey by interviewing 20 respondents.

Select randomly, it is helpful in finalization of the questionnaire and also in

knowing standard error or core element. How this survey has became useful to me

in deciding the sample size

Sample size decision

As the study is related to satisfaction level with reference to surat city.I have taken

the formula as follow:

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Where:

p=probability of success

q= probability of failure

z= confidence level

e=Tolerable error

To decide the value of above-mentioned variable. I have analysis the pilot survey and result emerged is

as

ResultNo of

respondentPercentage

Satisfy 15 75%

Dissatisfy 5 25%

Total 20 100%

100% confidence level is not possible because of large size of population. So I

have taken 95% confidence to overcome this limit maintain accuracy.

I have decided to accept 5% error in my sample from the true population mean, as

it is also tolerable by the company. I get the following sample size through the

equation

Sample Size N=p*q (z/e) 2

= (0.75)*(0.20)*(1.96/0.05) 2

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= 0.75*0.25(39.2)2

= 288.12

300

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MANAGEMENT DECISION

  PRICING STRATEGY - CATERING TO ALL SEGMENTS

30

Maruti caters to all segment and has a product offering at all price points. It has a car priced at

Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers

who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every

customer looking for up gradation in his car. Their sole motive of having so many product

offering is to be in the consideration set of every passenger car customer in India. Here is how

every price point is covered.

Modernization of the Indian Automobile Industry.

Production of fuel-efficient vehicles to conserve scarce resources.

Production of large number of motor vehicles which was necessary for economic growth

Maruti created history by going into production in a record 13 months.

On 14 December 1983, the then Prime Minister of India, Mrs Indira Gandhi,

released the first vehicle for sale by handing over the keys of a Maruti 800 to

Mr.Harpal Singh of Delhi.

Volume targets were routinely exceeded, and in March 1994, we became the first Indian

company to produce over one million vehicles, a landmark yet to be achieved by any

other car company in India. Maruti is the highest volume car manufacturer in Asia,

outside Japan and Korea, having produced over 4 million vehicles by April 2003.

Maruti (subsidiary of Suzuki), has made profits every year since inception except 2000-01. In

2001-02, we made a profit (before tax) of Rs 1183 million. In 2002-03, the profit (before tax)

rose to Rs 2821 million, recording a growth of 138.4%over the previous year.

Maruti revolutionized the way Indians looked at cars. "No other car company so completely

dominates its home market" - (The Economist). MUL is the first and only car company in the

world to lead its home market in terms of both market share and in the JD Power Customer

Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies). It is also

31

the only car company in the world to be Top ranked four times in a row (2000, 2001, 2002 &

2003).

Maruti-Suzuki Autocross 2004

In it's 5th year, Maruti-Suzuki Autocross 2004 was organized at Noida from 6th - 8th

Feb, 2004. 135 rally enthusiasts participated in the event including 3 women drivers. The Maruti

Suzuki Autocross 2004 may have thrown up its usual share of winners, but none of the 135

participants lost out on the sheer excitement.

The 1.5 km twin dust tracks comprised of a bridge as a unique feature. With two cars

racing simultaneously, it was sheer excitement to watch one car going over the bridge & the

other under it. The track was designed in such a way that while racing, cars change tracks

automatically & in the next lap the car which had gone over the bridge goes under it & vice

versa. The race was based on best timing in the qualifying & pre-quarterfinals & elimination

procedure in quarterfinals, semi-finals &finals.

Six of the Maruti's models were in the fray -- Baleno, Esteem, Gypsy, Alto, Zen and

Maruti 800. Maruti Zen witnessed max. no. of entries followed by Esteem & Baleno.

Professionals included 6 times National champion & Formula 3 winner N. Leelakrishnan

from Coimbatore, 2003 National Champion Vikram Mathias from Ooty, Sunny Sidhu -

defending champion Maruti Suzuki Autocross 2003 & winner Maruti-Suzuki Raid-de-Himalaya

2003; Sandeep Sharma, winner Maruti Suzuki Autocross 2002, Anil Wadia, winner Rally

Desertstorm 2003 proved to be the scene stealers in the contest. Equally noteworthy is the fact

that all models from the Maruti stable negotiated the bends and the hurdles without much ado.

32

Another first this year was the 'Race of Champions' where winners of each category raced

on similar stock cars (without any modification).

Maruti-Suzuki Autocross is a close circuit racing on an artificially created track full of

dips, bumps & hairpin bends to test the driving skills of participants. It also provides a platform

for new players to emerge in Motorsports arena.

DISTRIBUTION CHANNEL

India has emerged as one of the world's largest manufacturers of small cars. According to New

York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-

efficient cars has resulted in the expansion of manufacturing facilities of several automobile

companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.[6]

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

export 250,000 vehicles manufactured in its India plant by 2011.[7] Similarly, General Motors

announced its plans to export about 50,000 cars manufactured in India by 2011.[8]

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

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

market and for export.[9] The company said that the plant was a part of its plan to make India the

hub for its global production business.[10] Fiat Motors also announced that it would source more

than US$1 billion worth auto components from India.[11]

According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of

cars.

33

SALES PROMOTION STRATEGY

34

SALES PROMOTION

It is a process by which awareness is created among consumers. Several method

1. Road Show

2. Advertisement In TV

3. Advertisement In News Papers

4. Hording

5. Through Fee Demos

6. Gifts, discounts and draw system.

7. Door step service.

8. Exchange offers and exchange bonus.

9. Company events.

10. Demonstration and test ride.

11. Easy and suitable financing scheme.

Attractive interest on advance payment

ADVERTISING ALLOWANCES. An advertising allowance is a dividend paid by a marketer to

a reseller for advertising their product. The money can only be used to purchase advertising—for

35

example, to print flyers or run ads in a local newspaper. But some resellers take advantage of the

system, so many manufacturers require verification. A display allowance is the final form of

trade promotional allowance. Some manufacturers pay retailers extra to highlight their display

from the many available every week. The payment can take the form of cash or goods. Retailers

must furnish written certification of compliance with the terms of the contract before they are

paid. Retailers are most likely to select displays that yield high volume and are easy to assemble.

STRATEGIES

Business

In 1998, after a shake-up in the Korean auto industry caused by overambitious expansion and the

Asian financial crisis, Hyundai acquired rival Kia Motors. In 2000, the company established a

strategic alliance with DaimlerChrysler and severed its partnership with the Hyundai Group. In

2001, the Daimler-Hyundai Truck Corporation was formed. In 2004, however, DaimlerChrysler

divested its interest in the company by selling its 10.5% stake for $900 million.

Hyundai has invested in manufacturing plants in the North America, China, Czech Republic,

Pakistan, India, and Turkey as well as research and development centers in Europe, Asia, North

America, and the Pacific Rim. In 2004, Hyundai Motor Company had $57.2 billion in sales in

South Korea making it the country’s second largest corporation, or chaebol. Worldwide sales in

2005 reached 2,533,695 units, an 11 percent increase over the previous year. Hyundai has set as

its 2006 target worldwide sales of 2.7 million units (excluding exports of CKD kits). In 2007 it

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reached 3,961,629 worldwide vehicle sales—surpassing Fiat, Chrysler, PSA/Peugeot, Nissan,

and Honda.

Hyundai motor vehicles are sold in 193 countries through some 5,000 dealerships and

showrooms. After a recent survey of global automotive sales, Hyundai is now the fifth largest

automaker in the world as of 2008.[9][10]

Hyundai Motor Company’s brand power continues to rise as it was ranked 72nd in the 2007 Best

Global Brands by Interbrand and BusinessWeek survey. brand value estimated at $4.5 billion.

Public perception of the Hyundai brand has been transformed as a result of dramatic

improvements in the quality of Hyundai vehicles.

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CUSTOMER BEHAVIOUR

38

PRODUCT ADOPTION AND CUSTOMER SATISFACTION

Findings of the 2009 four-wheeler total customer satisfaction study reveal that the upper

premium compact, midsize and entry luxury car segments have shown the maximum

improvement in delivering customer satisfaction. The study conducted by TNS specialist

division, TNS Automotive, which is the largest syndicated automotive study in India,

representing the responses of more than 8,100 new car buyers. Over 54 models were covered in

the study with customer evaluations taken in the key areas of sales satisfaction, product quality,

vehicle performance and design, after sales service, brand image, and cost-of-ownership. The

TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its

customers.

According to Pradeep Saxena, Senior Vice President TNS Automotive, “In 2009 the small car

segment has seen the entry as well as consolidation of feature laden bigger size hatchback cars.

Consequently the upper-end of compact cars have grown not only in sales volume but in

customer satisfaction as well. Models such as Hyundai i10, Maruti A Star and Skoda Fabia have

contributed to the high satisfaction scores”. At the other end of the spectrum, the niche entry-

luxury segment has the distinction of achieving a score of more than 100 for all the car models

sampled (though the sample for some models is relatively small). Another segment which has

done consistently well is the mid size car segment. In this segment all the sampled models have

achieved a score of 90+ This year the lowest scoring segment is the diesel small car segment due

to a fall in the Tata Indica Diesel Scores.

Rankings for the TCS study are done at the vehicle segment-level to provide comparisons among

similar groups of vehicles. The models ranking highest in their respective segments for total

customer satisfaction are: Maruti 800 in “Entry Compact”; Hyundai i10 and Maruti A Star

(Jointly) in “Premium Compact”; Skoda Fabia in “Upper Premium Compact, Maruti Swift

Diesel in “Small Car – Diesel”; Maruti Omni LPG in “ Small Car – Alternate Fuel”; Hyundai

Accent Petrol in “Entry Midsize”; Hyundai Verna Petrol in “Midsize”; Toyota Corolla Altis in

“Premium Midsize”; Ford Fiesta Diesel in “Midsize Car – Diesel”; Mahindra Bolero in “SUV/

MPV”; and Honda CRV in “Premium SUV”.

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Overall the industry has maintained the score at last year’s level. In line with that, some

traditionally strong models continue to delight their customers. The Maruti 800 continues to

enjoy a very high satisfaction level. Hyundai Accent and Swift Diesel are able to do much the

same and this indeed speaks highly of how these manufacturers have been able to manage these

brands using a holistic approach encompassing product quality, after sales service and brand

image. All of these models have improved their scores over 2008 as well. Overall the Indian car

industry has put up a great performance not only in terms of car sales but also in keeping the

customers satisfied with their products and services in a year which had started on a rather

somber note.

TNS Automotive: “Indian car industry puts in a great performance on Customer Satisfaction too!

 New Delhi, January 4th, 2010… According to the findings of the 2009 four-wheeler total

customer satisfaction study released today by leading market information provider, TNS, the

upper premium compact, midsize and entry luxury car segments have shown the maximum

improvement in delivering customer satisfaction.

The 2009 four-wheeler Total Customer Satisfaction (TCS) study conducted by TNS specialist

division, TNS Automotive, is the largest syndicated automotive study in India, representing the

responses of more than 8,100 new car buyers. This comprehensive study covers over 54 models

with customer evaluations taken in the key areas of sales satisfaction, product quality, vehicle

performance and design, after sales service, brand image, and cost-of-ownership. The TCS index

score provides a measure of satisfaction and loyalty a given model enjoys with its customers.

According to Pradeep Saxena, Senior Vice President TNS Automotive, “In 2009 the small car

segment has seen the entry as well as consolidation of feature laden bigger size hatchback cars.

Consequently the upper end of compact cars has grown not only in sales volume but in customer

satisfaction as well. Models such as Hyundai i10, Maruti A Star and Skoda Fabia have

contributed to the high satisfaction scores”.

40

At the other end of the spectrum, the niche entry luxury segment has the distinction of achieving

a score of more than 100 for all the car models sampled (though the sample for some models is

relatively small). Another segment which has done consistently well is the mid size car segment.

In this segment all the sampled models have achieved a score of 90+

This year the lowest scoring segment is the diesel small car segment due to a fall in the Tata

Indica Diesel Scores.

Rankings for the TCS study are done at the vehicle segment-level to provide comparisons among

similar groups of vehicles. The models ranking highest in their respective segments for total

customer satisfaction are: Maruti 800 in “Entry Compact”; Hyundai i10 and Maruti A Star

(Jointly) in “Premium Compact”; Skoda Fabia in “Upper Premium Compact, Maruti Swift 

Diesel in “Small Car – Diesel”; Maruti Omni LPG in “ Small Car – Alternate Fuel”; Hyundai

Accent Petrol in “Entry Midsize”; Hyundai Verna Petrol in “Midsize”; Toyota Corolla Altis in

“Premium Midsize”; Ford Fiesta Diesel in “Midsize Car – Diesel”; Mahindra Bolero in “SUV/

MPV”; and Honda CRV in “Premium SUV”. (ANNEXURE 1)

Overall the industry has maintained the score at last year’s level. In line with that, some

traditionally strong models continue to delight their customers. The Maruti 800 continues to

enjoy a very high satisfaction level. Hyundai Accent and Swift Diesel are able to do much the

same and this indeed speaks highly of how these manufacturers have been able to manage these

brands using a holistic approach encompassing product quality, after sales service and brand

image. All of these models have improved their scores over 2008 as well.

Overall the Indian car industry has put up a great performance not only in terms of car sales but

also in keeping the customers satisfied with their products and services in a year which had

started on a rather somber note.

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CUSTOMER SATISFACTION THEORY :

Whether the buyer is satisfied after purchase depends on the offer’s performance in

relation to the buyer’s expectations.

Satisfaction is a person’s fallings of pleasure or disappointment resulting

from comparing a product’s perceived performance 9or outcome) in relation to his

or her expectations.

As this definition makes clear, satisfaction is a function of perceived

performance and expectation. If the performance falls short of expectations, the

customers, the customer is dissatisfied. If the performance matches the

expectations, the customers are satisfied. If the performance exceeds expectations,

the customers are highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who are

just satisfied still find it easy to switch when a better comes along. Those who are

highly satisfied are much less ready to switch. High satisfaction or delight creates

an emotional bond with the brand, not just a rational performance. The result is

high customer loyalty. Xerox’s senior management believes that a very satisfied or

delighted customer is worth 10 times as much to the company as a satisfied

customer. A very customer is likely to stay with Xerox many more years and buy

more than a satisfied customer will.

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There are five major factors, which affected satisfaction of the car namely: -

1. Problems Experienced:

Contributing to 35% of the CSI score, this factor measures the quality of the

car in terms of the number of repair problems that cropped up and how often it

was returned for re-service.

2. Service Advisor:

Which related to ability of the services advisor to ability of the service

advisor to understand the problem and his promptness in attending to the

customer, contributing to 28% of the CSI Score.

3. Service Performance:

Measures the quality of the service performed as well as the dealer’s ability

to fix a problem on the first visit. It has a weightage of 26% in the CSI score

and also considers how easily spare parts are available when required.

4. Service Timing:

Affecting the score by just 6%, this time taken for a service or repair job was

responsible and if the vehicle was ready at the time promised.

5. Facility Appearance: -

Deals with the appearance of the customer lounge at the dealership and the

look and cleanliness of the service area. This factors has the least impact CSI

score at Just 5%

43

SWOT ANALYSIS

44

The diagnosis of a firm’s strengths and weakness can be fruitful only if the

environment factors and market conditions are considered along with the

internal capabilities. This approach essentially involves matching of the

internal capabilities with the environmental opportunities and threat and is

known as SWOT (Strength and Weakness, Opportunities and Threats)

analysis.

TATA

STRENGTHS :

Strength is a resources, skill or other advantage relative to

competition and the needs of markets a firm serves of anticipates serving.

Strength is a distinctive competence that gives the firm a comparative

advantages in the market place.

The key strengths are :

Well trained and highly qualified manpower (both technical & non-

technical).

Hi-Fi and world class technology is available.

Hi class facility, reflecting leadership of top-management.

Financial status of the company is very strong and sound.

WEAKNESS :

A weakness is a limitation or deficiency in resources, skills and

capabilities that seriously impedes effective performance .

OPPORTUNITIES:

An opportunity is a major favorable situation in the firm’s

environment. Identification of a previously overlooked market segment,

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changes in competitive of regulatory circumstances, technological changes

etc. are examples.

Since, company’s financial profile is quite sound & strong, hence there is

lot of scope to develop.

THREATS :

A threat is a major unfavorable situation in the firm’s environment. It

is key impediment to the firm’s current or desired future positions. The

entrance of a new competitor, slow market growth, major technological

change, appearance if a substitute product are examples.

The danger of being priced out.

The danger of substitution.

The danger of new competition coming.

Inadequate measures viewed against product, market scope.

High level quality and low price should be maintained.

MARUTI SUJUKI

Time commitment and Business ethics should be adopted and maintained.

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STRENGHTS

o Is globally cost competitive

o Adheres to strict quality controls

o Has access to latest technology

o Provides support to critical infrastructure and metal industries

o Increased awareness among consumers has increased expectations. Thus the

ability to innovate is critical.o Product differentiation via new features, improved performance and after-

sales support is critical.o Increased competitive intensity has limited the pricing power of

manufacturers.

WEAKNESSES

▪ Industry has low level of research and development capability

▪ Industry is exposed to cyclical downturns in the automotive industry

▪ Most component companies are dependent on global majors for technology

OPPORTUNITIES

▪ May serve as sourcing hub for global automobile majors

▪ Significant export opportunities may be realised through diversification of export basket

▪ Implementation of Value-Added-Tax (VAT) in FY2004 will negate the cascading impact of prices

THREATS

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o The presence of a large counterfeit components market poses a significant

threato Pressure on prices from OEMs continues

o Imports pose price based competition in the replacement market

o Further marginalisation of smaller players likely

OBJECTIVES OF THE PROJECT

The objectives are.

1. To find the mode of pollution by the four wheeler.

2. To find the find which type of four wheeler less pollute.

3. To find the various sources of information about cars from primary data

through customers.

4. To find and analyses the various parameters of increasing four wheeler.

5. To find the what is effect in city life.

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CONCLUSION

49

In the above research I found that the small four wheeler are more eco

friendly than big car

The mileage of small car are greater than big car so that small car less

polluted than big car.

LPG car pickup is lees than Petrol but in the long drive LPG can provide

more speed than Petrol about 140 km. per hour.

Petrol car is easy to drive in the city because the pick-up of petrol is to

good.

In the above research I found that LPG four wheeler eco friendly for

environment.

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RECOMMENDATIONS

51

Four wheeler should come out that are attractive and appeals to the

masses.

The traffic congestion short out with small fourwheelers .

Pollution of environment is also control with using of small four

wheeler

LPG four wheeler is also helps to control pollution.

Increasing of four wheelers will be disturbing city life.

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LIMITATIONS

53

Lack of knowledge of area has also affected the research

Lack of respondents interest to answer the question

It is very difficult to make people understand the significance of

conducting survey.

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BIBLIOGRAPHY

55

Journals/Magazine :

Advisor of Finance

Search Engine :

Google search engine

Yahoo search engine

Websites :

www.hondacity.com

www.sebigovt.com

www.business-today.com

www.hyundai.com

www.indiaautomobile.com

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