Comparative Analysis of Gm s Tavera With Mahindra s Scorpio and Toyota s Innova
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Transcript of Comparative Analysis of Gm s Tavera With Mahindra s Scorpio and Toyota s Innova
RESEARCH PROJECTOn
“COMPARATIVE ANALYSIS OF
GM'S TAVERA WITH MAHINDRA'S
SCORPIO AND TOYOTA'S INNOVA”
Submitted as a partial fulfillment of the requirement for the award of
Master of Business Administration
UNDER THE GUIDANCE OF SUBMITTED ByMr. GAURAV BAJPAYEE HEERANDRA PRATAP SINGH SR.FACULTY. (MBA) MBA IVTH SEM.SITM LUCKNOW (0812370036)
SAROJ INSTITUTE OF TECHNOLOGY AND MANAGEMENT
LUCKNOW (2008-2010)
PREFACEPREFACE
This project report has been prepared with the objective for the
fulfillment of the degree of master's in business administration, a requisite
requirement.
The report contains all the finding deducted during the analysis process. The
title of the project is “COMPRATIVE STUDY COMPARATIVE ANALYSIS
OF GM'S TAVERA WITH MAHINDRA'S SCORPIO AND TOYOTA'S
INNOVA
It consists of research work conducted, tabulation & analysis of data
collected, which ends in the effective & impressive suggestion & conclusion.
I hereby divided this Project Report into different sections in which contain
different information’s about the COMPARATIVE ANALYSIS OF GM'S
TAVERA WITH MAHINDRA'S SCORPIO AND TOYOTA'S INNOVA details
about my project work.
ACKNOWLEDGEMENT
A large number of individuals have contributed directly and indirectly in this
project. I am thankful to all of them for their help and encouragement.
MY sincere gratitude to Dr. D.N.MISHRA (H.O.D.), and all the M.B.A.
faculty of SAROJ INSTITUTE OF TECHNOLOGY AND MANAGEMENT,
LUCKNOW for their support in completion of this project.
I express my gratitude to MR. GAURAV BAJPAYEE who has
through his vast experience and knowledge has been able to guide me, both
ably and successfully towards the completion of the project.
I express my sincere thanks to my parents & friends for their constant
support and suggestions to accomplish my goals.
Last but not the least I thank God for his love and grace that enabled me
to complete this project.
(DHANANJAY KUMAR)
TABLE OF CONTENTS
PrefacePreface
AcknowledgementAcknowledgement
Certificate of the project Certificate of the project
SECTION - A
Executive summary
SECTION - B
Industry background
TOYOTA INNOVA
CHEVROLET TAVERA
MAHINDRA SCORPIO
SECTION - C
Research Methodology
SECTION - D
Analysis
findings
Suggestion
conclusion
limitation
Bibliography
NAME OF TOPIC : COMPARATIVE ANALYSIS OF GM'S TAVERA
WITH MAHINDRA'S SCORPIO AND TOYOTA'S INNOVA
OBJECTIVES:
The main objective of the study is to get the market position of GM, TOYOTA
and MAHINDRA. For this I have to do the comparative analysis of GM’s
Tavera with Mahindra’s Scorpio and Toyota’s Innova.
So marketing approaches oSTP – segmentation, targeting and positioning,
distribution, advertising, advertising budget, sales, pricing, branding, potential
market, features of the product are some of the points which I have taken as
the basis of comparison.
To assess the overall market position of Tavera, Innova and Scorpio.
To conduct a survey on a sample selected from the entire population of
the customers and dealers in LUCKNOW region. Proper understanding
and analysis of dealers and customers.
To analyze the results of the survey conducted with the help of
statistical tools.
To recommend some remedies to the respective companies in order to
overcome competitive strategies of competitors.
To also analyze some of the marketing activities of companies like
advertising, pricing, distribution, targeting and positioning.
To study the market share of all the seven cars including their
competitive strategies.
ABOUT THE TOPIC
TOYOTA INNOVA – the Qualis’ replacement is a multi-purpose vehicle that
Toyota hope will appeal a vast range of customers, especially those whose
priority are comfort, space and reliability. The Innova is much larger in the
flesh. It is in fact 80 mm longer than a scorpio. It looks nothing like its UV
(utility vehicles) rivals despite sharing a gene pool.
CHEVROLET TAVERA – Tavera is a new generation multi utility vehicle. It
has been localized heavily in India to keep the price down. Tavera is having a
smart, conservative looks, a blend between a SUV – special utility vehicle, an
MUV – multi utility vehicle and an MPV.
MAHINDRA SCORPIO – “TO MAKE A CAR BETTER THAN MOST CARS,
WE DECIDED NOT TO MAKE A CAR”
The idea of this world class vehicle was born in 1996. Scorpio was designed
completely in house by Mahindra, has been one of the major success stories
in the last two years. It has the looks and rugged appeal of a proper SUV –
special utility vehicle, with a distinctly MUV like price tag, a decent interior a
good pair of engines.
Research Methodology
Research Design : Exploratory Research
Sample size : 100
Sampling Technique : Simple Random sampling
Methods for Data Collection : Case study, Survey
Analysis Tools Used : Tabulation, Graphs & Charts
INDUSTRY
&
COMPANY
PROFILE
COMPARATIVE ANALYSIS OF THE TAVERA, INNOVA AND
SCORPIO
Customer’s response
This chapter deals with the analysis TAVERA, INNOVA & SCORPIO. It
consists of the analysis of the following:
Driving force when the customers opted for their car.
Type of relation ship marketing
Important features of car according to customers.
Source of information that influenced customers to buy the car.
What are the other brands from which customers searched for
information?
Psychological factors involved in buying the car.
Factors that influenced buying behavior.
Satisfaction level of customers.
Preferences of customers while making purchase decision.
Comparison of value chain of all the 7 cars.
Overall satisfaction derived by the customers.
Replacement of car.
Effective advertising or not.
Influencing power of advertisement.
Who is Market leader in these 7 cars according to customers?
NOW BEFORE STARTING THE ANALYSIS PART OF THIS STUDY IT WILL
BE WORTHWHILE TO EXPLAIN SOME THING ABOUT TAVERA, INNOVA
AND SCORPIO –
Tavera.
New Tavera. To drive your business ahead.
It makes a lot of business sense to choose the new Tavera. To start with, it
gives an amazing mileage of 14.3 kmpl* overall and a phenomenal 20.1 kmpl*
on highways. Thanks to its 'Ergomax' seating with flexible options, you can
pamper your customers by providing them unmatched space and comfort. A
host of thoughtful features like a Noise Vibration Harshness (NVH) package
for silent interiors and an advanced suspension setup for a smooth ride make
every journey special. The Tavera Elite is also easy to maintain and has
economical spares. In every way, a car that is a pleasure to own.
CHEVROLET TAVERA – Tavera is a new generation multi utility vehicle. It
has been localized heavily in India to keep the price down. Tavera is having a
smart, conservative looks, a blend between a SUV – special utility vehicle, an
MUV – multi utility vehicle and an MPV.
SUV – because of the pretty rear and two tone paint
MUV – because of its boxy shape
MPV – because of the short, sloping bonnet.
Sitting on 15 inch alloys, the Tavera’s smooth, rounded styling is a well
balanced design. Space and practicality is where the Tavera shines: it is very
roomy, with lots of leg room and width.
Features of Tavera –
Superior Performance
The 2.5 litre direct injection insta-torque turbo diesel engine eliminates turbo
lag. It means no power loss, no idling, and no waiting after starting and before
shutting down. The car responds in a flash, and the excellent low-end torque
ensures that you won’t have to change gears often even in city traffic. What’s
more, the robust engine gives a superior mileage of 14.3 kmpl* (overall) and
COMPARATIVE ANALYSIS OF GM'S TAVERA WITH MAHINDRA'S
SCORPIO AND TOYOTA'S INNOVA 20.1 kmpl* (highway driving).
Easy Maintenance
The Tavera Elite costs less to maintain and has economical spares. It has a
long oil period (at intervals of 10,000 km) and comes with a 5-year/1.5 lac km
engine warranty* in addition to the standard warranty 2-year/50,000 km
warranty on the car.
Comfort
From flexible seating options, effective air-conditioning, easy entry and exit to
more legroom and headroom, an advanced suspension setup and silent
interiors, the Tavera leads the way in comfort.
Total Safety
Your family's safety means the world to us. At GM, we're constantly employing
radical technology to give you cars that redefine safety standards. The Tavera comes
with a reassuring line-up of features that do exactly that.
Powerful Ventilated Front Disc Brakes for better stopping power.
Load Proportioning Valve for brake force distribution.
Body-on-frame construction
Passenger Cell with Front Crumple Zones.
Side-impact Beams in all side doors.
Robust bonnet construction with reinforced webbing support
Child Safety Locks on rear Door and Power Window Locks.
Wider tyres add to smooth riding experience and better road grip.
Clear multi-reflector headlamps ensure better visibility at night. The wrap-
around rear combination lamps add to better visibility for other road users.
Rear defogger and wash wiper system for better visibility during rains and
foggy weather conditions.
Wider Outside Rear View Mirrors.
Large, wide-view windshield provides excellent driver visibility.
Fuel tank with metal guard & anti-chip paint protection.
Fuel spillover check valve in case of rollover
Steel Bumpers
Technical Specifications.
ENGINE
Engine Type 2.5L Direct Injection Turbo Diesel
Displacement (cc) 2499
Max. Output Ps/rpm 80 / 3900
Max. Torque kgm/rpm 19 / 1800
No. of Valves/OHC 8
Fuel Type Diesel
Compression Ratio 18.5 : 1
TRANSMISSION, DIMENSION, WEIGHT
Transmission 5-speed Manual
Length (mm) 4435
Width (mm) 1680
Height (mm) 1765
Wheel Base (mm) 2685
Track (Fr/Rr) (mm) 1445/1420
Ground Clearence (mm) 184#
Fuel Tank Capacity (litres) 55
Gross Vehicle Weight (kg) 2335-2375
Kerb Weight (kg) LS - 1585, LT - 1640 / 1660, SS - 1660
CHASSIS
Tyre 205/65 R15
Turning Radius (m) 5.6
Brakes (FRONT) Ventilated Disc & Caliper
Brakes (REAR)Drum, Leading - Trailing (Self
Adjusting)
Suspension (REAR) Semi-elliptical Leaf Spring
Suspension (FRONT)Double Wishbone with Independent
Torsion Bar Spring & Anti-roll Bar
TOYOTA INNOVA – the Qualis’ replacement is a multi-purpose vehicle that
Toyota hope will appeal a vast range of customers, especially those whose
priority are comfort, space and reliability. The Innova is much larger in the
flesh. It is in fact 80 mm longer than a scorpio. It looks nothing like its UV
(utility vehicles) rivals despite sharing a gene pool.
Innova’s greatest strength, without doubt lies inside. Spacious, well appointed,
comfortable and well equipped, its everything you want in a car of this class.
The Toyota Innova. The Innova is a result of a unique process that has
broken new grounds in the way automobiles are created. The Innova brings
together qualities never before seen together in an automobile. Fantastic ride
quality and luxury coupled with versatile space; superior performance and
driving pleasure with world class safety, advanced styling with solid durability.
Design :: Innovative Design A sleek sedan with ground clearance of an MPV
The Innova successfully holds eight people inside, and the attention of all others
outside. Wherever you drive the Innova, admiring glances, faster heartbeats and
envious stares are bound to follow.
See the Design of Luxury Innova.
Not only sedan but also
MPV, INNOVA has higher
height, road clearance to
drive through rough road
and versatile usability. It
can also carry many
passengers comfortably.
Global Trend
Grand Style
Right Size
Wide & Low Design
Sporty and curved monoform design
Cutting edge aerodynamics
Panoramic Windows
3-dimensional front
Semi-concealed wiper
Experience new Innova's exteriors.
The 3-dimensional front
grille not only adds to the
impressive look but also
provides efficient airflow
3-dimensional front grille
Superior multi reflector headlamps
Fog Lamps
Side Protection Molding
Distinct rear combination lamp
Rear Wipers
Grip type door handle
to the rear. Large chrome emblem in front
Chrome rear garnish
Large tyre and alloy wheels
Towering Height
Smart Design
Better Visibility
Explore the space of the Luxury Sedan.
Surrounding Cabin
Ergonomically designed instrument panel
Tilt Steering
Power door locks
High quality seat
Advanced meter
Sunglass holder and Personal lamps
The cabin is not just wide.
From the front to third row
seats, they are all
designed to gently
surround the passengers,
enabling them to enjoy
the drive together.
Door bottle holder
Shift console
Rear console
Large Armrest Console Box
Mobile Charger
Glove Box
Big Cargo Space
Easy Access cabin
Two tone colour interior - Relaxing colour tone
Explore the space of the Luxury Sedan.
From the colour co-
ordination and feel to the
looks and utility aspects,
Breathtaking dashboard
Air Vents for every row
Independent Airconitioner
Wood grained instrument panel
Versatile Seating (7 Passenger)
Versatile Seating (8 Passenger)
Stretch out in total comfort (7 seater)
the dashboard of the
Innova is a stunner in
itself. There's a great
balance between storage
space and the
ergonomically designed
and attractive instrument
panel which makes
driving.
Enough Space for passengers and luggage for
a weekend trip
High quality 2 din Audio System with CD, and
MP3
Surround Sound with 6-Speakers
Adjustable driver's seat
Adjustable passengers seat
Saddle type headrests
Chrome Plated door inside handle
Electric Outer Mirror
View Innova's safety equipment
The unique Global
Outstanding Assessment
(GOA) body was
GOA Body
SRS Airbags (Driver & Passenger side)
Large Disc Brakes (Front only)
ABS
LSPV (Load Sensing Proportion Valve)
Collapsible steering column
High Rigidity Frame
developed to Toyota's
own safety standards,
which exceed those of
most countries of the
world. The crumple zone
and high integrity cabin,
reinforced with energy
absorbing materials, help
to minimize injury to
passengers.
Soft upper interior
3 point seatbelts for every rows
Passenger Cabin Protection
Side door impact beams
Seat Belt warning light
Rear window defogger
Theft Deterrent System (Immobilizer)
Wireless door-lock integrated key
Child protector locks
See why Innova has build in performance from start.
The newly developed
engine uses the latest
common-rail technology
D-4D common-rail diesel engine
VVT-I Petrol (gasoline) engine
Cutting edge aerodynamics
Coil spring double wishbone front suspension
The newly designed rear 4-link suspension
Impactful Wheels
High minimum ground clearance
for superior performance
and exceptional fuel
efficiency. This 2.5 L
(2494 cm3/cc) engine
specially tuned for Indian
conditions, generates
75kW(102PS)/3600 rpm
of power and
200Nm/1400-rpm
Lower Turning Radius
MAHINDRA SCORPIO – “TO MAKE A CAR BETTER THAN MOST CARS,
WE DECIDED NOT TO MAKE A CAR”
The idea of this world class vehicle was born in 1996. Scorpio was designed
completely in house by Mahindra, has been one of the major success stories
in the last two years. It has the looks and rugged appeal of a proper SUV –
special utility vehicle, with a distinctly MUV like price tag, a decent interior a
good pair of engines.
Technical specifications -
Engine & Transmission Choices Turbo
2.6
Turbo
2.6
DX
Sportz Turbo
2.6
SLX
SZ 2600 Plus Turbocharged Intercooled
Diesel Engine(BS II)
• • •
2.6 Litre Turbocharged
Intercooled ,Common Rail Diesel Engine
(BS III)
• • • •
Optional : Borg-Warner Electric 4WD
System(7 Seater,BS II only)
•
Safety Turbo
2.6
Turbo
2.6
DX
Sportz Turbo
2.6
SLX
Collapsible Steering column & side
intrusion beams
• • • •
Crash protecting crumple zones & child • • • •
locks
Fire resistant upholstery • • • •
Rear Wash & Wipe • • •
Protective side cladding • •
Rear demister •
Adjustable intermittent wipers •
Voice assist function, vehicle security
system & remote locking / unlocking
Luxury Turbo 2.6 Turbo
2.6
DX
Sportz Turbo
2.6
SLX
Heating , Ventilation & AC with
Rear Vents
• • • •
Fabric & Vinyl combination seats • • •
Black Leather seats •
Full Fabric seats •
ORVM manual remocon , power
windows & swivel interior lamp
• • •
centre arm rests : 2nd row seats • • •
cassette Player ,AM /FM Radio ,
Stereo with 4 Speakers.
•
Individual arm rests on 1st row • •
seats
'Follow Me Home' headlamps &
illuminated footboards
•
Theatre Style interior illumination
with lit front footwells
•
Appearance Turbo
2.6
Turbo 2.6
DX
Sportz Turbo
2.6
SLX
Styled steel wheels • • •
Roof -top ski Racks • •
Side decals , bonnets stripes
& side - window blackout
•
Two tone dashboard in Grey •
Fully colour keyed two -tone
interiors & exteriors
•
ConvenienceTurbo
2.6
Turbo 2.6
DX
Sportz Turbo 2.6
SLX
Power steering , fuel lid
opener & side step
• • • •
Power windows & central
locking
• • •
Seating Turbo
2.6
Turbo
2.6
Sportz Turbo
2.6
DX SLX
9 Seater • •
8 Seater • • • •
7 Seater • • •
RESEARCH
METHODOLOGY
METHODOLOGY
Some of the steps of research methodology -
1) Defining the problem -The research objective states comparison of Tavera
with Innova and Scorpio. The objective of the research is to derive the opinion
of dealers and customers. The objective was to compare Tavera with Innova
and Scorpio.
2) Research plan: Once the problem is identified, the next step is to prepare
a plan for getting the information needed for the research. Information will be
derived fro both the customers and the dealers. The present study will adopt
the exploratory approach. The project was very tedious at some places.
3) Collection and Sources of data: Market research requires two kinds of
data, i.e., primary data and secondary data. Being a firm in the
ADVERTISING industry, data gathering will involve usage of both primary and
secondary data though there will be an extensive usage of primary data. Well-
structured questionnaires were prepared.
4) Analyze the collected information: This involves converting raw data into
useful information. It involves tabulation of data and using statistical
measures. Some of the statistical tools like correlation, regression, and chi
square method is used.
METHODS OF ENQUIRY
In this project I have divided my study in three phases –
1st phase is of dealer’s questionnaire and the 2nd phase is of customer’s
questionnaire. I had contacted 12 dealers in LUCKNOW region – 5 dealers of
TOYOTA, 4 of TAVERA and 3 of Scorpio
The dealers and customers were interviewed through questionnaires.
Questionnaire was designed in such a manner so as to get the real situation
of the market.
Addresses of the dealers are taken from the websites of their respective
companies and customers were contacted on general places like malls and
parking spaces. Dealers straightly denied disclosing the database of their
customers.
In some questions respondents have to rate, rank their responses and in
some questions respondents have to just tick the option they like. So the
analysis will be both quantitative and qualitative.
Some of the data was also collected from the net like addresses of dealers
and some other information like technical features of the car. In this way
secondary data was collected.
Responses of the customers were collected and they were separated on the
vehicle they are having. Questionnaire is having open as well as close-ended
questions. There are some questions to which customers hesitate to respond
or they don’t have any idea about the answer, these questions are given
some options so that customers can easily respond to these questions.
The customers and dealers rated technical features of the cars. Average is
taken and then they are analyzed.
So there were three phases of the study –Getting the questionnaires filled by
the customers and dealers, Taking these responses on paper, hell lot of paper
work is done, Putting this response in a presentable form, so that it becomes
understandable.
Sample size was 100 in this survey for customers. For dealers I could find 12
dealers.
ANALYSIS
Analysis of customer’s response
I have surveyed 100 people randomly, and out of 100 I found –
Table 1 – customers of various cars –
Serial no. Cars No. of
customers
Percentage of
customers
1 Tavera 20 20%
2 Innova 27 27%
3 Scorpio 18 18%
4 Quails 22 22%
5 Safari 5 5%
6 Bolero 6 6%
7 Sumo 2 2%
Total 100
0
5
10
15
20
25
30
No. of customers
Tavera
Innova
Scorpio
Quails
Safari
Bolero
Sumo
Table 2 – driving force that influenced customers to opt for the car –
Car Sporty
look and
interior
Mileage Utility of
the
vehicle
New
trends in
cars
segment
Any other
reason
Tavera 5 5 18 3 -
Innova 10 12 17 5 -
Scorpio 10 4 10 4 -
Quails 10 1 19 - -
Safari 2 - 3 - -
Bolero 1 - 5 - -
Sumo 1 - 2 - -
total 39 22 74 12 0
We can see in the table that customers are attracted mostly by the utility of
these 7 vehicles. 74 times utility of the vehicle is selected by the customer and
it is that one customer has selected more than one option like he is influenced
by the utility and sporty look of the vehicle.
0
2
4
6
8
10
frequency of response
Sporty look and interior
sporty look and interior
Tavera
Innova
Scorpio
Quails
Safari
Bolero
Sumo
Inference – Innova, Scorpio and Quails customers responded equally 10
times to sporty look and interior. So look and interior of these three cars is
equally attractive.
0
2
4
6
8
10
12
no. of resonses
total
mileage as a driving force
tavera
innova
scorpio
qualis
safari
bolero
sumo
Innova is appealing most to customers when it comes to mileage compared to
Tavera and Scorpio.
0
5
10
15
20
frequency of response
total
utlity of the vehicle
tavera
innova
scorpio
qualis
safari
bolero
sumo
Inference – according to response of customer’s quails is having utility
influence followed by Tavera and Innova. So Quails is the winner when it
comes to utility of the vehicle compared to other cars in the same
segment.
0
1
2
3
4
5
frequency of response
total
new trends in cars segment.
tavera
innova
scorpio
qualis
safari
bolero
sumo
Inference – out of 12 responses for this feature 5 Innova customers said that
they are influenced by new trend of jeeps cum car followed by 3 responses to
tavera and 4 to scorpio. Rest did not respond to this feature. So innova is the
winner when it comes to new trend of jeeps cum luxury cars.
Relationship marketing and satisfaction level given by customer -
We assumed 1 to 5 ranking for type of marketing adopted by the particular car
co. 1 highest and 5 lowest for ranking. Then total of each marketing for each
vehicle is done. Then avg. is calculated.
Total of each marketing
Avg. of marketing ranks = ---------------------------------------
No. of responses (5)
If avg. of marketing ranks is 1 then customer perceives that company is
doing that type of marketing highly.
If avg. of marketing ranks is 2 then customer perceives that company is
doing that type of marketing not very highly.
If avg. of marketing ranks is 3 then customer perceives that company is
doing that type of marketing not so highly.
If avg. of marketing ranks is 4 then customer perceives that company is
not doing that type of marketing highly.
If avg. of marketing ranks is 5 then customer perceives that company is
not doing that type of marketing at all.
Total satisfaction is calculated by taking ratings on 6 parameters - features,
convenience, after sales, expectation completion, mileage and quality.
Customers did rating from 1 to 10 – 1highest and 10 lowest. So total
satisfaction level of each customer is calculated and then avg. of each
customer’s ratings is taken by dividing total satisfaction rating by 6.
Total of satisfaction rating
Avg. of total satisfaction = --------------------------------
No. Of features (6)
If avg. is given then satisfaction level –
If Avg. is 1 – 3.5 then satisfaction level is high
If avg. is 3.6 – 7 then satisfaction level is medium
If avg. is 7 – 10 then satisfaction level is low.
Table 3 – relationship marketing and avg. satisfaction given by each customer
– (for bolero)
So in the above table 5 customers of TATA Safari are shown with their avg.
satisfaction rating and avg. marketing rankings.
Inference – two inferences can be drawn from the above table -
Avg. satisfaction of safari is ok. It is around 5.5 so not too good not too
bad; customers of safari have given medium satisfaction. So customers
are driving midium satisfaction from the company.
Highest avg. ranking is of reactive marketing so customers are
perceiving that company is doing reactive marketing mostly than other
marketings.
If we combine the above two inferences we can say that customers of
bolero are getting medium satisfaction level from the car and these
medium satisfied customers are getting reactive marketing from the
company.
Reactive marketing is that marketing in which co. encourages customer to call
if he has any problem.
Table 4 – relationship marketing and avg. satisfaction given by each customer
– (for Tavera)
Inference – two inferences can be drawn from the above table -
Avg. satisfaction of tavera is ok. 15 customers of tavera have given
medium and 5 given high satisfaction.
Medium satisfied customers think they are getting reactive
marketing while highly satisfied customers think they are getting
accountable marketing.
Reactive marketing is that marketing in which co. encourages customer to call
if he has any problem.
Accountable marketing is that marketing in which company calls customer to
know that he is satisfied.
Table 5 – relationship marketing and avg. satisfaction given by each customer
(for innova
Inference –
Medium satisfied customers think that Toyota is doing accountable
marketing.
Highly satisfied customers think that Toyota is doing basic &
accountable both types of marketing.
Low satisfied customers think that Toyota is doing reactive &
accountable marketing.
Table 6 – relationship marketing and avg. satisfaction given by each customer
(for Scorpio)
Inference –
Medium satisfied customers think that Mahindra is doing accountable
marketing.
Highly satisfied customers think that Mahindra is doing reactive
marketing.
single Low satisfied customers think that Mahindra is doing proactive
followed by partnership & basic marketing.
Table 7 – relationship marketing and avg. satisfaction given by each customer
– (for Qualis)
Inference –
Medium satisfied customers think that Toyota is doing basic marketing
for quails, followed by reactive & accountable.
Highly satisfied customers think that Toyota is doing reactive
marketing, followed by basic & accountable.
Table 8 – relationship marketing and avg. satisfaction given by each customer
– (for bolero) –
Inference –
Medium satisfied customers think that Mahindra is doing basic
marketing for quails, followed by reactive & proactive.
Proactive marketing is that marketing in which company calls customer from
time to time with suggestion about product usage.
Table 9 – relationship marketing and avg. satisfaction given by each customer
– (for TATA Sumo)
Inference –
Medium satisfied customers think that TATA is doing basic marketing
for Sumo, followed by reactive & partnership.
Features rankings given by the customers -
There are 8 features to which customers of all the cars have to rank.
Average of each feature for each car is calculated-
Ranking is to be done by the customers from 1 to 8.
1 for highest ranking and 8 for lowest ranking.
If the average of a particular feature is low means that feature is liked
by the customers and if it is lowest means that feature is liked most by
the customers because 1 is the highest ranking & 8 is the lowest
ranking in this case.
Table 10 for features of safari, sumo & bolero –
Inference –
In safari people are mostly attracted by its appearance, followed by
safety and luxury.
In sumo customers like convenience, seating and design, engineering
and interior equally followed by safety and luxury.
Bolero attracts its 6 customers on engine and transmission feature
followed by luxury & design engineering and interior.
Table 11 for features of tavera -
Inference –
In Tavera customers found appearance most attractive followed by engine,
transmission and luxury and convenience. Then come safety, design
engineering & interior, seating and performance.
Table 12 for features of innova –
Inference –
Convenience is the most appealing feature of innova according to customer’s
follwed by engine and luxury. Then comes appearance and seating followed
by design, safety & performance.
Table 13 for features of Scorpio –
Inference –
Scorpio attracts its 18 customers on design, engineering and interior followed
by appearance & engine features. Then come convenience, luxury, seating,
performance fuel economy and handling and safety.
Table 14 for quails –
Inference –
22 customer of quails liked safety most, then comes engine and transmission
feature followed by design engineering & interiors. After that customers prefer
luxury & appearance equally 2.91 to each. Then comes performance followed
by seating and convenience.
Table 15 – source of information that influenced customers to buy the car –
Car Reference
s
Friends
&
relative
s
Commercia
l ads – TV
Interne
t
Newspape
r
Showroo
m
Anythin
g else
Safari - - - - - 5 -
Sumo 1 6 - - - - -
Bolero 1 - - 1 1 3 -
Innova 3 5 19 3 18 17 -
Scorpi
o
1 4 4 2 9 14 -
Qualis 3 6 1 5 10 18 -
Tavera 1 5 4 5 11 16 -
total 10 26 28 16 49 73 -
Inference – so we can say that innova and Qualis customers said that their
source of information for their cars is references. Out of 10 people who voted
for references as an influencing factor, 3 innova and 3 quails people selected
reference as influencing source.
Inference - 6 sumo and quails people gave their response to friends and
relatives as source of information, followed by Innova & Tavera. Only 4 in
Scorpio opted for friends as reference.
Inference - Innova is having commercial ads as influencing factor for
customers and it is having influencing power also to pursue people to opt for
the car. Other cars are not doing well in their commercial ads in fact most of
the car companies are not even doing advertisement on TV. But innova’s
response has disclosed that their TV advertising campaign is good.
Inference – only Qualis and Tavera are influencing customers through
Internet as source of information other companies are not doing good Internet
advertising.
Inferences – Innova is attracting customers through newspapers followed by
Tavera, Qualis and Scorpio. Innova’s print media advertising is good.
Inferences – Qualis is attracting customers through its showroom. Toyota is
attracting customers by way of their Showrooms located in NOR region. There
are 5 showrooms of Toyota in LUCKNOW region, all doing well.
Innova is no. 2 in attracting its customers through its showroom followed by
tavera and Scorpio.
This is the response of each customer when I asked that from which other
brand they have searched for information –
Suppose a person is having Tavera then I asked him that from which other
brands they have searched for more information, because it might be the case
that the Tavera person would have gone to Toyota showroom also. So I tried
to find out the other alternative brand in the mind of general customer -
Table 16 for other brands -
Cars TOYOTA GM MAHINDRA TATA
Safari 2 - 3 -
Sumo 1 - 1 -
Bolero - - - 6
Innova 2 16 4 5
Scorpio 6 4 4 4
Qualis 2 8 6 6
Tavera 14 2 4 -
Inference –
2 safari customers searched information from Toyota and 3 safari
customers searched information from mahindra – so TATA’S
competitor in market are Toyota and Mahindra.
1 sumo customer searched information from Toyota and 1 from
Mahindra.
All the 6 customers of bolero searched information from TATA. So
Mahindra bolero’s major competitor is TATA.
2 Innova persons searched information from Toyota itself. 16 innova
customers searched information from GM’s cars, 4 from Mahindra and
5 from TATA. So Toyota innova is having good competition with
Tavera.
6 Scorpio persons searched information from Toyota and 4 each
searched from GM, Mahindra and TATA.
Qualis biggest competitor is GM followed by Mahindra and TATA.
GM’s Tavera is having good competiton with Toyota innova. And this is
fact also innova is having good competition with Tavera in the market
also, though Innova is all above in luxury cars but Tavera is at least
competing with them, where other cars are not able to touch Toyota’s
innova sales figure. Innova is really doing well in the market but Tavera
is also on no 2 followed by Innova.
Table 17 – for disclosing the psychological factors involved in buying the car
(from customers perspective) –
Car Motivation Perception Beliefs and
attitudes
Safari 0 3 2
Sumo 0 2 0
Bolero 0 5 1
Innova 5 21 1
Scorpio 5 12 1
Qualis 2 16 4
Tavera 4 15 1
Total 16 74 10
Inference –
All the 5 safari customers are influenced by perception as
psychological factor involved in buying the car.
Both sumo customers are influenced by perception as psychological
factor involved in buying the car.
Bolero - 5 bolero customers are influenced by perception and 1
customer is influenced by belief and attitude as psychological factor
involved in buying the car.
Innova - 5 Innova customers are influenced by motivation and 21
customers are influenced by perception and only 1 customer is
influenced by beliefs and attitude as psychological factor involved in
buying the car.
Scorpio - 5 scorpio customers are influenced by motivation and 12
customers are influenced by perception and only 1 customer is
influenced by beliefs and attitude as psychological factor involved in
buying the car.
Quails – 2 quails customers are influenced by motivation and 16
customers are influenced by perception and only 4 customers are
influenced by beliefs and attitude as psychological factor involved in
buying the car.
Tavera – 4 tavera customers are influenced by motivation and 15
customers are influenced by perception and only 1 customer is
influenced by beliefs and attitude as psychological factor involved in
buying the car.
So perception is the highest psychological factor involved in buying of
these 100 cars.
Perception - it is how a prospective customer perceives the particular
product or a company. It is what he understands company to be, like a
general person thinks Toyota to be a very good brand name. For GM I
found customers think that GM is a foreign brand of cars but it is not very
effective on Indian minds. Like Maruti Suzuki is having good influence on
Indian customer but not on a customer in some other country. So the
perception varies from person to person.
Table 18 for some other factors that influenced buying behavior of a customer -
CarCultural factors Social factors Personal
factors
Safari0 0 5
Sumo0 0 2
Bolero0 2 4
Innova1 6 20
Scorpio2 3 13
Qualis1 8 13
Tavera0 5 15
Total 4 24 72
Inference –
All the 100 car owners are influenced by personal factors while making final
decision for purchasing the car. This is followed by social and cultural factors.
Personal factors are those factors, which are backed by these parameters –
age & life cycle stage, occupation & financial status, life style.
Social factors are backed by – reference group and family.
Cultural factors are backed by – rules, values, beliefs, behavior & concept.
Personal factors are most important influencing factor out of 3 factors.
Table 18 for disclosing preferences of customers while making purchase of
cars – because whoever the customer is, he must have some
preferences while making purchase decision for a product – so this is
tried to find out – customers are given some choices like color, look,
cost, mileage and luxury as preferences -
Cars Color Look &
style
Cost
efficient
Mileage Luxury
Safari 0 5 0 0 0
Sumo 0 2 0 0 0
Bolero 0 4 2 0 0
Innova 1 16 12 14 10
Scorpio 0 14 2 9 5
Qualis 0 20 2 1 1
Tavera 0 14 8 10 10
Total 1 75 28 34 26
Inference -Color is not a preference for customers while making a purchase
decision because I think all the companies offer a wide range of colors in the
cars so customers don’t even have to think of the colors.
Inference – Qualis is having good appeal when it comes to look and style
follwed by innova, sumo and tavera. Qualis is no1 in looks and qualis people
had a preference of look in their mind and that was the reason also they
purchased qualis only, out of other cars.
Inference – so here is innova’s cost efficiency, yes it is true that innova’s
best model is having a price tag of rs.10, 77,055 according to a showroom of
Toyota. But I think the service, the look, and the benefits a customer will
derive after purchase of this car will be much higher than the price tag of
rs.10, 77,055. so he will get full value for the amount he will pay for this
luxurious car.
Even a sales manager in UTTAM TOYOTA told me that a customer would not
get any other car in INDIA on this price tag of 10 lakh Rs.
So innova customers are having a thought of mileage in their minds and this
though only pursued them to go for innova. Tavera customers are also having
mileage thought in their minds, followed by Scorpio customers.
Inference - both innova and tavera customers thought for luxury before opting
for their cars so these 2 cars having equal luxury appeal followed by luxury
appeal of sumo and quails.
VALUE CHAIN OF THE COMPANY –
Value chain of all the companies are compared so as to know which car
company is doing what type of value chain –
Value chain consist of activities ranging from procurement of raw material to
the after sales of the product –
Now the rating on some parameters is taken from the customers, these
ratings are
From 1 to 10 – I for highest and 10 for lowest – then total of each parameter
of value chain for each car is done and then its avg. is taken, lower the avg.
highest will be the level of value chain o f the company.
Table 19 for value chain of safari -
CAR & FORM NO.
EASY
PROCUREMENT
AFTER
SALES
SPARE
PARTS
SALES
PERSONS
CUSTOMER
HANDLING
OVERALL
SATISFACTION
FROM VALUE
CHAIN
SAFARI 1 2 2 3 3 4 3
SAFARI 2 4 4 3 3 3 4
SAFARI 3 2 3 3 4 4 4
SAFARI 4 1 2 2 2 3 3
SAFARI 5 1 1 3 3 4 4
TOTAL 10 12 14 15 18 18
AVG. 2 2.4 2.8 3 3.6 3.6
Inference - we can see in the above table that minimum avg. is of easy
procurement TATA Safari scored high on easy procurement parameter of
value chain. Overall avg. rating for each parameter is not more than 4, so
good rating.
Table 20 - for value chain of sumo and bolero, Table 21 for value chain of
quails -
Inference – after sales of sumo is good because sumo scored well on after
sales parameter of value chain. Avg. rating of sumo is better than bolero.
Inference – quails scored high on easy procurement followed by after sales
and spare parts. Qualis scored around 3 on each parameter of value chain so
good rating.
Table 22 for value chain of Tavera –
Inference - Tavera scored highly on easy procurement followed by spare
parts, after sales and sales person, then come customer handling. Tavera’s
value chain parameters not even crossed avg. of 2.5 so good rating for value
chain of tavera also.
Table 23 for value chain of Scorpio -
Inference – Scorpio also scored highly on easy procurement followed by after
sales and overall satisfaction from value chain. Then come sales persons,
spare parts and customer handling. Scorpio crossed avg. rating for 2.5 so
Scorpio’s value chain is not better than tavera’s value chain.
Table 24 for value chain of innova –
Inference – innova also made an impact through easy procurement followed
by after sales, customer handling and overall satisfaction from the value
chain. Then come spare parts and sales persons. Any parameter of value
chain not even crossed 2.3 figure so the best value chain goes to innova.
Now comes the overall satisfaction from the car, it is tried to find out that what
is the overall satisfaction level of the customers from all the 7 cars. This
satisfaction is measured on some parameters like easy procurement of car,
after sales provided, customer care, availability of car and relation ship
marketing of the car company.
Table 25 for overall satisfaction of safari, sumo and bolero –
Inference – TATA safari scored lowest 12.2 while sumo 12.5 and bolero
18.33.
1 highest and 10 lowest in our ratings so safari is the winner in the above
table.
Table 26 for overall satisfaction of Qualis –
Quails did well by scoring 12.73 on all the parameters of satisfaction.
Table 27 for Tavera’s satisfaction level –
Tavera scored just 9.95. Tavera won when it comes to overall satisfaction
from the car. Customers are very much satisfied with Tavera.
Table 28 for Scorpio –
After Tavera here comes the Scorpio with 11.39 preceded by tavera’s 9.95.
Table 29 for innova –
Now comes Innova with 10.07 so scene is changed – when we talk of
satisfaction –
No. 1 goes to Tavera
No. 2 goes to Innova
No. 3 goes to Scorpio
Table 30 showing ranking of all the 7 cars (satisfaction level give by
customers) –
Because we have assumed 1 to be highest and 10 to be lowest rating so least
the total, highest the car –
SORRY FOR BOLERO WHO LOST THE BATTLE?
NOW WE HAVE TRIED TO FIND OUT WHETHER REPLACEMENT OF CAR
IS BASED ON SATISFACTION LEVEL OR NOT. FOR THIS I HAVE TAKEN
A ASSUMPTION (HYPOTHESIS) –
THIS HYPOTHESIS IS CHECKED WITH THE HELP OF CHI SQUARE TEST
HYPOTHESIS – REPLACEMENT IS DEPENDENT ON SATISFACTION
LEVEL OF CUSTOMERS – MEANS IF A CUSTOMER IS SATISFIED HE
WOULD NOT LIKE TO CHANGE THE CAR AND IF HE IS NOT SATISFIED
HE WOULD LIKE TO REPLACE HIS CAR.
Table 31 showing relation between replacements of cars vs. satisfaction level
of customers –
RESPONSE
OF
CUSTOMERS
HIGH MEDIUM LOW TOTAL
YES 13 47 4 64
NO 9 24 3 36
TOTAL 22 71 7
SO 13 CUSTOMERS WHO ARE HIGHLY SATISFIED SAID YES
THEY WOULD LIKE TO REPLACE THEIR CAR.
47 CUSTOMERS WHO ARE MEDIUM SATISFIED SAID YES THEY
WOULD LIKE TO REPLACE THEIR CAR.
4 CUSTOMERS WHO ARE LOW SATISFIED SAID YES THEY
WOULD LIKE TO REPLACE THEIR CAR.
9 CUSTOMERS WHO ARE HIGHLY SATISFIED SAID THEY WOULD
NOT LIKE TO REPLACE THEIR CAR.
24 CUSTOMERS WHO ARE MEDIUM SATISFIED SAID NO, THEY
WOULD NOT LIKE TO REPLACE THEIR CAR.
3 CUSTOMERS WHO ARE LOW SATISFIED SAID NO THEY
WOULD NOT LIKE TO REPLACE THEIR CAR.
E(13)=64*20/100=14.08 E(9)=36*22/100=7.92
E(47)=64*71/100=45.44 E(24)=36*71/100=25.56
E(4)=64*7/100=4.48 E(3)=36*7/100=2.52
DEGREE OF FREEDOM = (3-1)(2-1)
= 2
5% DEGREE OF FREEDOM - TABULATED VALUE 5.991
.52<5.991
MEANS CALCULATED VALUE IS LESS THAN TABULATED VALUE HENCE
HYPOTHESIS IS ACCEPTED. REPLACEMENT OF CARS IS DEPENDENT
ON SATISFACTION LEVEL OF CUSTOMERS.
When I asked these 100 customers that would they like to replace their
car with some other car in the same category of cars – the answer was –
YES NO
64 36
Table 32-
Effectiveness of advertisements vs. influencing power of advertisement –
High Medium Low Total
Yes 18 24 4 46
No. 0 1 3 4
Total 18 25 7
HYPOTHESIS – it is assumed in the above test of Chi Square that
effectiveness of advertisements is dependent on influencing power of
advertisement –
E(18)=46*18/100=8.28 E(0)=4*18/100=.72
E(24)=46*25/100=11.50 E(1)=4*25/100=0
E(4)=46*7/100=3.22 E(3)=4*7/100=.28
DEGREE OF FREEDOM = (3-1)(2-1)
= 2
5% DEGREE OF FREEDOM - TABULATED VALUE 5.991
52.33>5.991
MEANS CALCULATED VALUE IS GREATER THAN TABULATED VALUE
HENCE HYPOTHESIS IS REJECTED. So effectiveness of advertisements is
not dependent on influencing power of advertisement – means it might be the
case that influencing power of ad is not good still it is effective and vice versa.
Inference -
Total 50 persons out of 100 said that yes they have seen advertisement (print
ad or TV commercial) before buying the car – out of these 50 persons 46
persons said that ad was effective and 4 said ad was not effective enough to
convert their thought of purchase in to final purchase.
Inference – out of 50 persons who saw any advertisement 46 said
advertisement was effective. Advertising of all the companies is effective.
Persons who said ad was effective, had to answer one more question that what
was the influencing power of advertisement –
Table 33 for ad ratings of cars -
Responses
Effective 46
Not effective4
Rating is to be done from 1 to 10 – 1 for highest and 10 for lowest.
Innova is having good influence when it comes to advertising followed by
Qualis, Scorpio, Sumo and Tavera.
It is also find while talking to 21 customers of innova that the recent
advertising of Aamir khan influences them a lot. A lot of ads in print media are
also influencing customers.
Tavera is not having good advertising campaign either in print or electronic
media.
I have also asked customers and tried to find out that who is the market
leader out of these 7 cars according to them –
Out of 5 safari customers 4 said that innova is the market leader and 1
said qualis is the market leader.
Both the sumo customers said that innova is the market leader.
Out of 6 bolero customers 5 said innova is the market leader and I said
that qualis is the market leader.
Out of 20 Tavera 5 said innova and 15 said that tavera is the market
leader.
Out of 22 Qualis customers 21 said that Qualis is the market leader.
Out of 18 Scorpio customers 17 said that scorpio is the market leader.
All the 27 innova customers said that only innova is leading the market.
COMPARATIVE ANALYSIS OF THE TAVERA, INNOVA AND SCORPIO
Dealer’s response
I went to 12 dealers – 5 of Toyota, 3 of Mahindra and 4 of GM and got their
response on their company’s car. I tried to put their responses in a
comparative form.
This section deals with the analysis TAVERA, INNOVA & SCORPIO from
dealer’s point of view. It consists of the analysis of the following:
Most selling car according to dealers.
Ranking or competitor’s car.
Actual sales of car.
Marketing approach of the company.
Target customer.
Punch line of the company.
How powerful id the brand name of the company.
Price list of all the dealers.
Distribution strategy of the company.
Integrated brand promotion of the company.
Advertising budget of these companies.
Incentives and benefits offered to the employees (sales force) by the
companies.
Most selling car –
All the 4 dealers of Tavera said that Tavera is the most selling car.
All the 5 Innova dealers said that Innova is the most selling car.
All the 3 Toyota dealers said that Mahindra and bolero is doing well
in the market.
Then I asked these dealers to rank their car and competitor’s car on some
parameters of technical features of car so as to get a comparative view of
these three cars –
Ranking is to be done from 1 to 6 because 6 cars are there – Innova,
Tavera, Scorpio , Bolero, Sumo and Safari. Qualis is not coming in the
market because it is closed down by Toyota motors so 6 cars comparative
ranking is as follows –
1 is the highest rank and 6 is lowest.
Table 34 showing ranking of features of innova by the dealers –
Inference – 13.67 is the total of all the features of avg. dealers are very much
convinced design engineering and interior followed by luxury and
convenience. Then come engine & transmission, performance fuel economy
and handling, safety, seating and appearance.
Table 35 showing ranking of features of Scorpio by the dealers –
Inference – 18.83 is the avg. total of Scorpio. All the dealers ranked Scorpio;
convenience is no1, followed by appearance and safety.
Table 36 for Tavera –
Inference – Tavera is no.3 with total of 19.67, dealers ranked convenience
no. 1. Then come safety, luxury, and appearance having equal rankings.
Seating and performance is no.3 followed by design engineering and interior,
engine & transmission.
Table 37 for TATA Safari –
Inference – safari is no.4 with total of 20.50 luxuries and convenience is good
followed by appearance, seating and design engineering and interior.
Table 38 for Bolero –
Inference – bolero is no.5 with total of 27.25. Dealers ranked seating as the
best feature followed by convenience and safety.
Table 39 for TATA Sumo –
Inference – bolero here also lost the battle with total of 28.67.
So Innova is no.1 in features ranking by Dealers, Scorpio no.2 followed by
Tavera, Safari, and Bolero And Sumo.
Car
Total of
avg. of
features
Innova no.1 13.67
Scorpio no.2 18.83
Tavera no.3 19.67
Safari no. 4 20.5
Bolero no. 5 27.25
Sumo no. 6 28.67
Table 40 sales of Innova –
Car Showroom No. Of cars selling per
month (approx figures)
Tavera T & T motors ltd.
A2/5, Safdarjung
Enclave, New Lucknow
110 029.
350
Tavera AUTOVIKAS
12-A, Shivaji Marg,
New Lucknow 110015.
60 – 70
Tavera APEX AUTO
64-65, Udyog Vihar,
Phase –4, Gurgaon,
Haryana.
125
Tavera REGENT
AUTOMOBILES LTD.
B1/H1, Mohan Co-
operative Industrial
Estate, Mathura Road,
New Lucknow - 110044
350+
Total sales of Tavera
885 approx figure.
Table 41 sales of Innova –
Innova UTTAM TOYOTA
95, Patparganj Industrial
Area, Lucknow – 110092
1000
Innova GALAXY TOYOTA
Tsg complex, 69/1-A,
Najafgarh Road, Moti
Nagar, New Lucknow -
110015
500 approx
Innova MGF TOYOTA
SALES AND SERVICE
Plot No. 48, Phase 4,
Sector 18, Udoyg Vihar,
Gurgaon.
70
Innova SOUTH DELH TOYOTA
A-22, Mohan Co
operative Industrial
Estate,Mathura Road,
New Lucknow - 110044
100
Innova UTTAM TOYOTA A11,
Meerut Road, Industrial
Area, Ghaziabad.
100
Total sales of innova 1770
Approx figure
Table 42 sales of mahindra and bolero -
Car Showroom No. Of cars selling per
month (approx figures)
Mahindra BHASIN MOTORS
(INDIA) PVT. LTD. N 12
South Ex. Part 1, New
Lucknow
110049
125
Mahindra SKY LINE
AUTOMOBILIES
1E/11, Swami Ram
Tirath Nagar,
Jhandewalan Extension,
New Lucknow 110055
15-20
Mahindra SRI DURGA
AUTOMOBILIES
55, Rama Road, New
Lucknow 110015
150
Total sales of BOLERO
& SCORPIO
295
APPROX FIGURES
INNOVA IS HAVING HIGHEST SALES IN LUCKNOW REGION.
Marketing approach adopted by the companies –
Inference -
Out of 4 GM showrooms 2 said that their company is doing segment
marketing while rest 2 dealers said their company is doing individual
and local marketing respectively.
Out of 3 dealers of Mahindra 2 said that their company is doing
segment marketing while one dealer said that they are doing local
marketing.
Out of 5 dealers of Toyota 3 said their company is doing segment
marketing while one dealer said that they are doing individual
marketing and the last dealer said that they are doing local marketing.
Use of car –
Inference –
Out of 4 GM dealers 3 said that their car is used for both
personal as well as commercial purpose.
All the 5 Toyota dealers said that their car is used for both
personal as well as commercial purpose.
All 3 Mahindra dealers said that their car is used for personal
use only.
Purpose of usage –
Inference – Toyota innova is used for commercial purpose, out of 5 dealers of
Toyota said 4 said that it is used for transportation purpose while all the 5
dealers said it is used for top management and BPO sector.
GM Tavera is used mostly for BPO sector according to 4 dealers of GM. Only
2 dealers out of 4 said that Tavera is used for top management and
transportation purpose.
Personal usage -
Inference –
4 GM dealers said that Tavera is mostly used by personals for official
use.
All the three dealers said that it is used for office and family use.
All the 5 Toyota dealers said that families use it. So Innova is proving
itself to be a good family rider.
Punch line correlation –
All these 12 dealers said that yes consumers correlate the punch line
of advertisement while sensing the brand name of the company.
Power of brand name in attracting customers –
Inference –
Out of 4 dealers of Tavera 3 said that that Brand Name of
CHEVROLET is having medium power in attracting customer only one
dealer said that it is having high brand power.
All the 5 dealers of Toyota said that Toyota is having high brand image
in attracting customers.
All the three dealers of Mahindra said that mahindra’s brand name is
high in attracting customers.
Distribution strategy –
All the 12 dealers said that their showrooms are dealership under guidance of
their respective companies. So distribution strategy of these 3 companies is
company to dealers.
Sales promotion –
Inference -
Out of 4 dealers of GM 2 said that they offer discounts, 3 said that they
give offers, 3 said that they give festival offers, 3 said that they offer
free gifts and only 1 dealers said that they provide free accessories to
their customers.
Out of 3dealers of Mahindra 1 said that they offer discounts, 1said that
they offer festival offers to customers.
Out of 5 dealers of Toyota 3 said that they offer discounts, 2 said that
they give offers, 4 said that they give festival offers, and only 1 dealer
said that they provide free accessories to their customers.
So Innova is having best sales promotion out of its competitors (GM and
Mahindra).
Advertising in print media
Inference -
Out of 4 dealers of GM 4 dealers said that they advertise their
product in news paper, 4 said that they advertise in magazines, 1
said that they advertise in journals, 3 said that they advertise in
mailers, 3 said that they advertise through pamphlets and 2 said
that they advertise through yellow pages.
Out of 3 dealers of Mahindra 3 dealers said that they advertise their
product in newspaper, 1 said that they advertise in magazines.
They don’t do advertising through other modes.
Out of 5 dealers of Toyota, all the dealers said that they advertise
their product in news paper, 4 said that they advertise in
magazines, 2 said that they advertise in journals, 4 said that they
advertise in mailers, 2 said that they advertise through pamphlets
and 1 said that they advertise through yellow pages.
So Toyota is having advertisement in all modes of print media, GM is
ok, but Mahindra is not having ads in all modes of print media. They
should also advertise through other modes of advertising also.
Advertising in electronic media
Inference -
Each GM dealer said that they are having advertisement in TV,
radio, websites and cinemas.
Two dealers of Mahindra said they are having advertisements on
TV channels.
Toyota is having advertisements on TV (the Aamir Khan ad), 2
dealers also said that their companies are having ads on various
websites.
I don’t know why these companies are not having ads on radio
because radio is the medium that reaches to lower class of society
also though lower class is not the target customer for these
companies but if these companies will advertise through ads on
radio then even the lower class will know about the company and
the product and these lower class people can tell their view on
company’s product to their friends and relatives who belong to
upper middle class or higher class of society.
So these lower class & middle class customers can recommend
products to other people or their friends.
Advertising budgets of these showrooms – dealers did not tell me the
exact figure of advertising budget but when I requested them to tell
approx budget of advertising they told me some avg. figurers.
So Toyota is having highest budget of advertising per month GM is no.2 and
Mahindra should iLucknowease their advertising budget so as to
iLucknowease the sales of Scorpio and Bolero.
Incentives offered by these 12 dealers to their sales force –
1800/3 = 600 MAHINDRA
4000/4= 1000 GM
5000/5= 1000 TOYOTA
So Toyota wins the race by offering 5000 as incentive to its sales force.
GM offers 4000 and mahindra 1800. The problem is that Toyota is having 5
dealers while mahindra is having 3 and GM having 4 dealers, but if we take
the average of these incentive amounts then Toyota and GM both are doing
well to motivate their sales force.
Table 43 Correlation between sales and advertising budget –
So X is was sales and Y is budget –
Budget was in 1000 like 50000, 100000 in total budget was 700000 and it was
divided by 1000 then further calculation is done on this 700 amount.
Mean of x = 2060 / 12 = 171.66
Mean of y = 700 / 12 = 58.33 or 700000/12 = 5833.33
15496.60
Nor r = --------------------------- = 15496.66/28146.63 = .5505
| 235316.67*33.66.67
(x-mean of x)*(y-mean of y)
----------------------------------
235316.67*3366.67 = 792233573.388
Then under wood of 792233573.388 is calculated. That is 28146.63
High degree of positive correlation if found out - .5505
So if advertising expenditure will go up sales will also go up.
Regression analysis –
Regression line of y on x:
Byx = sum of (x-mean of x)*(y-mean of y)
-------------------------------------------
Sum of (x-mean of x)^2
= 15496 .60/235316.67 = .065
(Y-mean of y) = Byx (X- mean of x)
= Y- 5833.33 = .065X - .065*171.66
= Y – 5833.33 = .065 X – 11.1579
Y = .065X – 11.1579 +5833.33
Y = .065X + 5822.17 ------------------------------------ equation 1
Regression line of x on y:
Bxy = sum of (x-mean of x)*(y-mean of y)
----------------------------------------------------
Sum of (y-mean of y)^2
= 15496.60/3366.67 = 4.602
(X-mean of x) = Bxy (Y- mean of y)
X-171.66 = 4.602 (Y- 5833.33)
X-171.66 = 4.602 y – 26844.98
X = 4.602y – 26844.98 + 171.66
X = 4.602 Y- 26673.32-------------------------------equation 2
In the 1st equation we can find out that what should be the advertising
budget if sales is given. And from equation 2 we can find out that what
should be the sales amount if advertising budget is given.
CONCLUSION
CONCLUSION
In this era of tremendous competition between these cars it is not easy to
survive for existing players, then how a new company can come and survive
in this segment of luxury cars cum jeeps. Now comes the question to the
mind that who is no.1 in this segment of 7 cars? If we see from customers
perspective the no.1 rank goes to TAVERA followed by INNOVA and
SCORPIO. But this is the response of just 100 customers so the result might
vary if we take a sample size of 1000 customers. In that case INNOVA may
come 1st. so results will change according to sample size of study.
Now if we take response of 12 dealers of these 3 cars in our mind then
INNOVA is no. 1 followed by SCORPIO and TAVERA. Now if we increase the
size of dealers then result may change. It might be the case that TAVERA
may come first if we change the sample size of dealers. So the thing is that
result may change according to change in the sample size. It is not easy to
change customer’s perception and dealer’s view. What the customers think of
a car? This question is really difficult to answer. I tried my level best to get into
the mind of customers but it is not easy to take true response out of a
customer’s mind. Dealer’s response was really good in this study. At some
places I found customers to be very confused. Customers also gave biased
responses to some answers because a customer thinks his or her car to the
best one. Comparatively if we see INNOVA and TAVERA both are doing well.
At some places INNOVA is no. 1 while TAVERA wins the race at some other
points. SCORPIO is also having its own place in the mind of customers. I
have also included 4 other cars in this study – QUALIS, SUMO, and SAFARI
& BOLERO. QUALIS is also having good share in the market, but the problem
is that QUALIS is closed down by TOYOTA motors. What I felt from
customer’s responses that if QUALIS would have been in the market at
present, I am damn sure that it must be no.1 car. Even a customer of
TAVERA told me that if QUALIS were again launched in the market no one
would go for INNOVA & TAVERA. QUALIS is closed down by TOYOTA
motors so that the prospective customers of QUALIS can shift to INNOVA.
INNOVA is a substitute of QUALIS in the market. TAVERA and SCORPIO
would really have to work hard to compete with INNOVA. SUMO & BOLERO
are almost out of the market. SAFARI is on no one’s mind.
RECOMMENDATIONS
RECOMMENDATIONS
INNOVA is doing well in market. But the only thing that TOYOTA should keep
in mind that it is easy to reach at no.1 position than to remain at no.1 position.
It might be the case that INNOVA is no.1 today but tomorrow some other
company can come to no.1 position. So there are some points, which not only
should TOYOTA keep in mind, but other companies should also focus on
these points –
Constant updation of their product.
Competitor’s product and their strategy to win INNOVA’S customers.
Constant work on brand promotion and market integration.
Always try to be on top.
Always have a feeling of their major competitor especially
CHEVROLET TAVERA.
Advertising should be for all the periods, all the seasons and for all the
prospective customers.
Always try to attract new customer by hook or by crook.
Toyota motors should try and built brand loyalty in the mind of a
general customer.
Company’s aim should be not only to sell their product but to also give
customer full satisfaction with full value for their money.
Customer’s choice depends on their perception, their standard of living
and their life style. Companies should try to influence prospective
customers by the way they think. First get into the mind of customer
then push him or her to make the final decision of purchase. This is
possible only if advertising is effective. Advertising is the important link
between a prospective customer and the company, so it should be
influencing.
I have seen a very good advertisement of INNOVA on TV. Even the
customers of SCORPIO & TAVERA have seen the ad and they are
very much impressed with advertisement, so it is a good point that
customers of TAVERA and SCORPIO enjoyed advertisement of
INNOVA. This is exactly what TAVERA AND SCORPIO should do.
For effective advertising proper planning of brand promotion is
required.
SCORPIO and TAVERA can also hire some celebrities like Aamir Khan
is the brand ambassador of INNOVA.
Recently TAVERA hired Zaheer Khan and speed star Irfan Pathan. So
TAVERA is working on brand promotion.
SCORPIO is having a very good brand name of MAHINDRA &
MAHINDRA but they are playing in the market haphazardly.
What I found at MAHINDRA showrooms that their sales force is not
very convincing, dealers should try and prepare a decent work force for
so that they can impress their customers and sell their product.
MAHINDRA SCORPIO can also hire for some actor or a sports star so
as to promote their car. Other wise SCORPIO is also having good look
and appealing feature.
SCORPIO is not very much used for commercial purpose like that of
INNOVA & TAVERA, so MAHINDRA should try to promote their brand
as a commercial vehicle. People think that SCORPIO is a jeep for
personal purposes.
BOLERO is really suffering a lot, and how to compete with brands like
INNOVA, I think MAHINDRA again has to work a lot on BOLERO’S
advertising part and they should reposition their product into the mind
of customers. STP approach segmentation, targeting and positioning
should be revised by MAHINDRA. Price of MAHINDRA’S cars is very
competitive, it’s a good point for MAHINDRA.
TATA again a huge brand name but SUMO & SAFARI are not
performing well. I think TATA having a lot of impression on INDIAN
minds have to just make their customers remember their brand name.
TATA can do very well if they re launch SUMO & SAFARI with a
different approach. SAFARI is having good name and features but
when INNOVA is a competitor it is really difficult to survive.
TOYOTA is very innovative and that is what TATA should do. TATA is
very old brand name but the problem is that they stick to their old
marketing strategies; TATA should re innovate their product and should
come with solid & competitive marketing strategies.
LIMITATIONS
LIMITATIONS
Though the present study aimed to achieve the above-mentioned objectives
in full earnest and accuracy, it was hampered due to certain limitations. Some
of the limitations of this study may be summarized as follows: -
Locating the target customers of the cars were very time consuming.
100 were the sample size in this study. So I had to contact 100
customers and when asked from the dealers for their customer’s
database they straightly denied me. So I had to catch the customers of
Tavera, Innova and Scorpio on the general places shopping malls,
car parking and hotels.
The selection of customers to cover the various strata of the society
was tedious and time consuming.
Getting accurate responses from the respondents due to their
inherent problems were difficult. They were partial, and refused to
cooperate.
Some respondents were not at home so had to be re-contacted, and
some others responded by proxy. Some gave their business cards and
I had to contact them through phone.
I had to travel a lot to get the responses from the dealers and the
customers. Dealers were located all over LUCKNOW I got their
address from Internet.
The survey was costly and tedious.
BIBLIOGRAPHY
Bibliography
Books -
Marketing Management by ICFAI publication
Advertising and Integrated Brand Promotion
Quantitative methods by ICFAI publication
Principles of advertising
Web sites visited –
www.rediffusiondyr.com
www.google.com
www.altavista.com
www.dogpile.com
www.toyota.com
www.gm.com
www.mahindra.com
www.tata.com
www.advertising.com
www.jwt.com