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DissertationOn

Car Market and Buying Behavior- A study of

Consumer Perception

Towards The Partial ulfillment ofPost !raduate Diploma in Management

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Ta"le of Content

1. Executive Summary06

2. Introduction..08

3. Overview of the Auto e!ment1"

". #eview of $iterature20

%. O&'ective of the tudy2(

6. Sco)e of the tudy..30

*. #eearch methodo+o!y.32

8. $imitation of the tudy..3(

(. ,ar- rofi+e.."0

10./indin! and Ana+yi.%1

11.,ro a&u+ation.68

12.,onc+uion*1

13.Sco)e of the Study.*"

1".Annexure...*%

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#$ecutive %ummary

The automobile industry today is the most lucrative industry. Due to the increase

in disposable income in both rural and urban sector and easy finance being

provided by all the financial institutes, the passenger car sales have increased at

the rate of 38% per annum in June 200!0" over the corresponding period in the

pervious year. #urther competition is heating up in the sector $ith a host of

international players coming in and other lie $ols$agon, &udi, and '() all

set to venture in the *ndian marets. +ne factor that could help the companies in

the mareting of their product is by no$ing and creating a personality for their

brands.

This report attempts to ans$er some of the uestions regarding brand

personality of selected cars in -urnool Dist. by conducting the maret research.

This report is categoried into parts, deals $ith introduction to brand personality,

companies selected, product and the industry.

+ne factor that could help the companies in the mareting of their products is

buying 'ehavior of the consumers. The 'uying 'ehavior of the customers can

be studied by no$ing their perceptions about the cars in the maret and about

the possible entrants in the maret. +ne such techniue is by no$ing and

creating a personality for the brands.

This personality setching $ill help in no$ing $hat a customer /or a potential

customer thins about a given brand of car and $hat are the possible factors

guiding a possible purchase. 1imilarly, the idea of measuring the customer

satisfaction $ill serve the same purpose of determining the customer perception.

Thus, by measuring the $illingness of eisting users of a car to recommend it to

others $ill help the car manufacturers to chal out the entire 4ustomer 'uying

'ehavior.

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The reports shall attempt to ans$er some of the uestions regarding brand

personality of selected cars in *ndia by conducting a maret research. The

maret research $ill be helpful for the ne$ car entrant companies in *ndia to find

out the possible gaps bet$een the customer epectations and the present

maret offerings. This $ay these companies $ill be able to find their share in the

ever!epanding *ndian maret pie.

The research $ill trac the customer satisfaction in the follo$ing t$o layers5

6roduct related 6arameters

Dealers related parameters

The customer satisfaction inde $ill be calculated for the car brands taen into

consideration.

*t $ill be mainly a primary research and the information $ill be gathered from

both primary and secondary research. The study $ill analye the applicability of

eisting research concepts, theories, and tools for evaluating consumer

satisfaction.

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&'T(OD)CT&O'

&'T(OD)CT&O'

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*t is true fact that if you are satisfied you recommended to others. )ord of mouth

and customer satisfaction play a very important role in determining maret

perception about an automobile. *t is the maret perception that determines the

success of a company and so it is very important for the car manufacturers to

measure the 7$illingness of eisting users of a product to recommend it to

others. The same is a lot of interest to customers as $ell for it helps them mae

the purchase decision.

& car is one of the most significant purchases that an *ndian household maes

and this proect addresses the most important uestion that perplees car

manufacturers5

7)hat maes the perfect car that influence $ill $illfully purchase9

The proect highlights the factors that influence the buying decision of a

consumer.

The factor under consideration $ould be5

6rice

*ncome of the consumer

#eatures in the car

1afety standard

)arranty scheme

#inance facility

*s a consumer ready for more9 )hich is the driving motive behind the effective

demand of the car9 :o$ the coming of ne$ models lie s$ift does is going to

effect the buying decision of consumer and especially the Tata ; lah car.

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*n other $ords, from the spread of choices offered by various manufacturers

under various segments, of $hich one the customer $ill finally turn the ignition

on and drive.

4ustomer satisfaction inde5 some of the most advance thining in the business

$orld recognies that customer relationships are best treated as assets, and that

methodical analysis of these relationships can provide a road map for improving

them

7*f you cannot measure it, you cannot improve it. < =ord )illiam Thomson -elvin

/;82>!;?0@

7&s one of the measurements of the performance of the uality management

system, the organiations shall monitor information relating to customer

perception as to $hether the organiation has met customer reuirements. Themethod for obtaining and using this information shall be determined

Trends in customer satisfaction and ey indicators of customer dissatisfaction

shall be documented and supported by obective information. These trends shall

be compared to those of competitors, or appropriate benchmars, and revie$ed

by senior management.

There is obviously a strong lin bet$een customer satisfaction and customer

retention. 4ustomerAs perception of service and uality of product $ill determine

the success of the product or service in the maret.

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)ith better understanding of customerAs perceptions, companies can determine

the actions reuired to meet the customerAs needs. They can identify their o$n

strengths and $eanesses, $here they stand in comparison to their competitors,

chart out the path future progress and improvement. 4ustomer satisfaction

measurement helps to promote an increased focus on customer outcomes and

stimulate improvements in the $or practices and processes used $ithin the

company.

4ustomer epectations are the customer!defined attributes of your product or

service. )e cannot create satisfaction ust by meeting customerAs reuirements

fully because these have to be met in any case. :o$ever falling short is certain

to create dissatisfaction.

(aor attributes of customer satisfaction can be summaried as5

6roduct uality

6roduct pacaging

-eeping delivery commitments

6rice

Besponsiveness and ability to resolve complaints and reect reports

+verall communication, accessibility and attitudes

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)e cannot begin to address the customer satisfaction issue $e define the

parameters and measures clearly.

The customer satisfaction inde represents the overall satisfaction level of that

customer as one number, usually as a percentage

Values

Benefits

Features - Attributes

+ -

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The buying process involves the follo$ing steps5

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ro&+em#eco!nition

Information earch

Eva+uation

ot urchaeionance

uy

eciion

Satifaction

rand Acce)tance

iatifaction

rand #e'ection


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7The fact that $ord of mouth sales are a big deal in this industry has also helped.

*ndustrial field of study and maret surveys reveal that 20!30 percent of sales

are through $ord of mouth.

/or the )ur)oe of the )ro'ect ha under!one throu!h

1urveying the relevant consumer base through ehaustive uestionnaire.

Cnderstand the elements underplaying in each segment

Deducing & analytical overvie$ through different statistical methods

#ecommendation come from atifaction and atifaction come from

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Service Quality

RelationshipQuality

Product Quality


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O*#(*+ O T,# A)TO %#!M#'T

*ndians have emerged as avid car enthusiasts sporting their pried possessions

as status symbols and speed machines. #oreign car companies have discovered

the *ndian consumer as $ell as the B D potential in the *ndian technical

fraternity and are setting up manufacturing plants right and left across the

country at lo$er costs. The *ndian automobile industry is currently eperiencing

an unprecedented boom in demand for all types of vehicles. This boom has

been triggered primarily by t$o factors5

/; increase in disposable incomes and standards of living of middle class

*ndian families estimated to be as many as four million in numberE

F1ource5 &uto drive (againeG

/2 The *ndian governmentHs liberaliation measures such as relaation of the

foreign echange and euity regulations, reduction of tariffs on imports, and

baning liberaliation that has fueled financing!driven purchases.

F1ource5 *ndia Today $eelyG

*ndustry observers predict that passenger vehicle sales $ill triple in

coming five years to about one million, and as the maret gro$s and customerHspurchasing abilities rise, there $ill be greater demand for higher!end models

$hich currently constitute only a tiny fraction of the maret. These trends have

encouraged many multinational automaers from Japan, C. 1. &., and Iurope to

enter the *ndian maret mainly through oint ventures $ith *ndian firms.

*ndia is increasingly becoming a 4$OA$ A5OOI7E 5 both for the

vehicles and component industry. *ndia is fast integrating itself into the $orld

economy and open to international automotive companies, $ho are increasingly

investing in *ndia.

The *ndian automotive and component industry is looing to increase the uality

of production from eisting levels, to develop ne$ products and to increase

eports. *n the long run *ndia is $ell set to become a ey maret for automotive

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and component manufacturers in terms of local demand and as a base for

eport.

&dditionally, companies such as (, Daimler 4hrysler, Toyota, Delphi and

(*4+K'osch are utiliing *ndiaAs $ell developed *T K soft$are capabilities and

have set up BD hubs here for their global operations.

:ere in the area is of study and research more emphasis is laid to understand to

no$ about potential buying pattern of customers as the analytical area has got

constraints lie lacing manufacturing units of automotives and components.

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&ndustry %ie

The domestic *ndian passenger car maret /including utility vehicles totaled

?00,000 units /$ith a 4ompound &nnual ro$th Bate of ;0 per cent over the past >

years $hile the eports $ere ;30,000 million units /$ith a registered 4&B of "8

per cent over the past > years during financial year 200>

The *ndian t$o!$heeler *ndustry is one of the largest in the $orld, and is epected

to maintain robust gro$th in the future

*ndia offers a distinct technological and cost!competitive advantage, $hich global

+riginal Iuipment (anufacturers /+I(s and automotive suppliers are leveraging

for both manufacturing and research facilities. The passenger car maret is

proected to gro$ at a 4&B of ;2.3 per cent over the net fe$ years. ro$th in the

mid!sie and premium car segments is epected to outpace the overall maret

gro$th.

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&ndian Automo"ile &ndustry

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&utomobile *ndustry in *ndia is still in its infancy but gro$ing rapidly. The

opportunities in the automobile industry in *ndia are attracting big names $ith the

big purse and they are investing vigorously in infrastructure, design and

development, and mareting. &utomobile industry in *ndia is today poised for the

big leap.

*ndia is the 2nd largest t$o $heeler manufacturer in the $orld

1econd largest tractor manufacturer in the $orld

th largest commercial manufacturer in the $orld

3rd largest car maret in &sia, surpassing 4hina in the process

&utomobile industry 4ontributes ;@% of the total indirect taes collected by the

echeuer is a driver of product and process technologies, and has become a

ecellent manufacturing base for global players, because of its

high machine tool capabilities

Itremely capable component industry

(ost of the ra$ material locally produced

=o$ cost manufacturing base

:ighly silled manpo$er

1pecial capability in supplying large volumes

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ometic and /orei!n 7ehic+e anufacturer5

Passenger *ehicles

The main domestic manufacturers of passenger vehicles are as follo$s5

(aruti Cdyog

Tata K Telco

(ahindra K (ahindra

:industan (otors

#oreign competitors manufacturing locally including yundai9 /ord9 4enera+

otor9 onda9 and oyota.

,ar demand ha een a turnaround ince mid 2001 than: to heavy

dicount and chea)er finance. A +ar!e num&er of new mode+9 &oth

+oca++y aem&+ed and im)orted9 have a+o revita+i;ed the mar:et.

*n terms of volumes5

The &K' segments are $here *ndiaAs strength and future lies. The &K'

segment accounts for over "% of the total passenger vehicles

produced. 4ompetition in this segment is stiff $ith (aruti the maret

leader $ith around % maret share. Le$ models from Telco /*ndica,

:yundai /1antro and #iat /6alio ho$ever are eroding (arutiAs long

standing dominance in this segment.

The mid K luury range is developing $ith the introduction of #ord /*on,

:yundai /&ccentK1onata and 1oda /+ctavia, although the volumes are

not significant.

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The CM segment remains sluggish $ith gro$th at ust over ;%. The clear

maret leader, (ahindra />>% maret share posted increased sales of

?% in the first 3 uarters of 2002K03. Toyota and Telco domestic CM

business remains flat.

,ommercia+ 7ehic+e

The main *ndian companies in the 4ommercial Mehicle segment are5

T&T& Ingineering and =ocomotive 4ompany /TI=4+

&sho =eyland

'aa Tempo =td

Iicher (otors =td

1$ara (ada

There is only one international company currently manufacturing 4Ms in *ndia,

Molvo but again volumes are not large. +ther global players are active, although

in partnership $ith one of the domestic manufacturers I.g.5! *MI4+

/manufacturing their range of trucs in association $ith &sho =eyland.

There has been a significant turn around in this segment over the last ;8 months

$ith over 30% gro$th being seen in terms of both production and sales.

This sector has received a huge boost $ith *ndiaAs massive demand from the

infrastructure sector /particularly roads, cyclical fleet replacement by fleet

o$ners and an upturn in the cement and steel sectors.

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Automo&i+e anufacturer ar:et Share

aen!er ,ar $,7

0.60" n 0.083 n

(aruti /JM of 1uui, leading the maret,

Tata and (( are the ey players

a #ollo$ed by :yundai and Tata, together hold close to @% of maret

b Dae$oo stopped production, mainly due to financial issues years long

bac

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(eview of .iterature

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Brand Personality

& brand is 7a set of epectation and association evoed from a company or

product. & brand is ho$ your ey constituents! customers, employees,

shareholders etc. eperience $hat you do. 1ome brands are of such great

importance to people, that $e spea of them as a part of oneAs life and identity,

being used to epress one. 1ome $ould say that these brands have their o$n

personality, the brand personality, $hich can be defined as 7the set of human

characteristics associated $ith a given brand. Thus, it includes such

characteristics as gender, age and socioeconomic class, as $ell as such classic

human personality is both distinctive and enduring.

'ased on the premise that brand can have the personalities in much the same

$ay as humans, brand personality describe brands in terms of human

characteristics. 'rand personality is seen as valuable factor in increasing brand

engagement and brand attachment, in much the same $ay as people relate andbid to other people. (uch of the $or in the area of brand personality is based

on translated theories of human personality and using similar measures of

personality attributes and factors. 'rand personality refers to the set of human

characteristics $e associated $ith the brand. & common $ay of determining this

is to reply on the metaphor5 7*f the brand $as a person, $hat $ould heKshe be

lie9 $e then list and group the traits to describe the brand as, for eample5

caring, approachable and trust$orthy. :o$ever, there is a lot more $e can do.

'ecause many people interact $ith brands as though they $ere other people, it

is important to understand $hat a brand personality consists of, and ho$ its

characteristics can be used to affect the relationship bet$een the brand and its

user. -no$ing and understanding the brand personality gives a good insight into

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this relationship, and into peoplesA attitudes to$ards the brand, and is also as

important guide to communicating the brand.

7A$5ES A> ,A#A,E#ISI,SS O/ #A> E#SO>A$I?

6eopleAs personalities are determined largely through the value and beliefs they

have, and other personality characteristics they develop. &n eample of value or

belief is honesty.

(any people believe in being honest in everything they do and say. &n eample

of characteristic is confidence. This is not a belief, but more of a behavior. There

are, of course, many valueKbeliefs and characteristic that a person may have, but

there are some that are particularly lieable. *t is these lieable values and

characteristics that people are inevitably attracted. Iamples of these include

dependability, trust$orthiness, honesty, reliability, friendliness, caring, and fun!

loving.

There are about t$o hundred $ords that describe personality characteristics,

and these can be used for putting personality into brands. To illustrate ho$

people thin in personality terms $hen maing udgments about brands, here

are the results of consumer research into ho$ people feel about to$ companies.

)hen ased uestion5 7if these companies are people, ho$ $ould you describe

them9 their replies $ere5

4ompany & 4ompany '

1ophisticated Iasy going

&rrogant (odest

Ifficient :elpful

1elf! centered 4aring

Distant &pproachable

Disinterested *nterested

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These t$o companies are actually competitors in a service industry. *f you $ere

ased of these t$o companies you $ould lie to be your fiends, you $ould

probably choose company ', as did ?% of other respondents. *t is not

surprising that the service level of company ' can be better eperience for

customers than that of company &. it is also easy to conclude that if customers

consistently eperience these differences bet$een the t$o companies, then the

brand image of company ' $ill be much better than company &.

& further point of interest arising out of this research is that people tend to prefer

brands that fit their self!concept. Iveryone has vie$s about themselves and ho$

they $ould lie to be seen by others. &nd they tend to lie personalities that are

similar to theirs, or to those $hom they admire. Thus, creating brands $ith

personalities similar to those of a certain group of consumers $ill be an effective

strategy. The closer the brand personality is to the consumer personality /or one

$hich they admire or aspire to, the greater $ill be the $illingness to buy the

brand and deeper the brand loyalty.

he ,reation of rand erona+ity

'rand personality traits are formed and influenced by any direct or indirect

contact that the consumer has $ith a brand. & brand, unlie a person, cannot

thin, feel or act. & brand has no obective eistence at allE it is simply a

collection of perception on the mind of the consumer. 4onsumers accept the

mareting actions to humanie brands. +ne eplanation fort this can be found in

the theories of animism, $hich suggest that there eists need by people to

anthropomorphie obects in order to facilitate interaction $ith the nonmaterial

$orld. &nthropomorphie occurs $hen human ualities are attributed to non

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&nother form of animism eplains ho$ brand personality is created in a more

indirect $ay. This form of animism involves complete anthropomorphiation of

the brand obect itself. :uman ualities of emotionality and thought are

transferred to the brand. This is achieved $ith the help of the mareting actions,

especially advertising.

F1ource5 psycho &nalysis on &nimism < oogle 1earchG

+ne of the advantage of the brand personality is that based on their distinctive

personalities, consumers are able to differentiate bet$een brands. &nother

advantage is that the consumer can interpret the brandAs image in such a $ay

that it is personally more meaningful. 'rand personality encourages more active

processing on the part of the consumer. Thus, the consumer put more efforts in

creating and using the brand personality. & further advantage of brand

personality is that life is given to a brand. 'y vitaliing a brand, another

perspective of brand personality can be eamined, namely the role of a brand as

relationship partner in a consumer!brand relationship. Let $e $ill concentrate

on these consumer!brand relationships.

)hether the brand is a product or a company, the company has to decide $hatpersonality traits the brand is to have. There are various $ays of creating brand

personality. +ne $ay is to match the brand personality as closely as possible to

that of consumers or to the personality that they lie. The process $ill be

Define the target audience

#ind out $hat they need, $ant and lie

'uild a consumer personality profile

4reate the product personality to match that profile

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This type of approach is favored by companies such as =evi 1trauss, $ho

research their target audience fastidiously. #or =evis the results is a master

brand personality that is5

+riginal

(asculine

1ey

Nouthful

Bebellious

*ndividual

#ree

&merican

& related byproduct brand personality /for a specific customer group such as

=eviAs 0; eans is5

Bomantic

1eually attractive

Bebellious physically pro$ess

Besourceful

*ndependent

=ies being admired

'oth profile appeal mostly to the EOIO>A$ SIE O/ E EO$E-S

I>S! to their feelings and sensory function. This profiling approach aims to

reinforce the self!concept of the consumers and their aspirations. The approach

is ideal for brands that adopt a maret!niche strategy, and can be etremely

successful if a maret segment has a degree of global homogeneity, as is the

case $ith =evis.

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>on )roduct re+ated &rand )erona+itie driver

5er ima!inary< user imaginary can be based on either typical users

/people you see using the brand or idealied users /as portrayed in

advertising and else $ere. Cser imaginary can be po$erful driver of

brand personality, in part because the user is already a person and thus

the difficulty of conceptualiing the brand personality is reduced. #or

eample 4harlie has a feminine, strongly independent brand personality

driven by it user imaginary. The upscale personality of (ercedes and the

sey, sophisticated personality of 4alvin -lein are similarly influenced by

user imaginary.

S)onorhi) < activities such as events sponsored by the brand $ill

influence its personality.

A!e< ho$ long a brand has been on the maret can affect its personality.

Thus ne$ entrants such as #ord, vols$agon and 4hevrolets, and it as all

too common far a maor dominate brand to see as strongly and old

fashioned, a brand for older people.

Sym&o+ < a symbol can be po$erful influence on brand personality

because it can be controlled and can have etremely strong associations.

@hy ue &rand )erona+ity

The brand personality construct can help brand strategies by enhancing their

understandings of peopleAs perceptions of and attitude to$ards the brand,

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contributing to a differentiating brand identity guiding the communication effort

and creating brand euality.

Enrichin! undertandin!

The brand personality metaphor can help a manager gain an in!depth

understanding of consumer perceptions and attitudes to$ards the brand.

'y asing people to describe a brand personality, feelings and

relationship can be identified that often provide more insight than is

gained by asing about attribute perceptions.

,ontri&utin! to a differentiatin! identity

1trategically, a brand personality, as a part of a core or etended identity,

can serve as the foundation for meaningful differentiations. &dvertising

agencies such as Noung Bubicam and +gilvy (ather routinely

include a brand personality statement as a part of their brand positioning

strategy.

4uidin! the communication effort

Tactically the brand personality concept and vocabulary communication

the brand identity $hich richness and teture to those $ho must

implement the identity building effort. 6ractical decisions need to be made

about not only advertising but pacaging, promotions, $hich events to

associate $ith, and the style of person interactions bet$een the customer

and the brand.

,ratin! &rand euity

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The brand personality creates brand euity. The self!epression model

eplains this. The model says that for certain groups of customersE some

brands become vehicles to epress a part of their self!identity. 6eople

epress their o$n or idealied identity in a variety of $ays, such as a ob

choices, attitudes, options, activities and lifestyles. 'rand that people lie,

admire, discuss, buy and use also provide a vehicle for self!epression.

rand )erona+ity of car

&re you $hat you drive9 That is $hat are companies seem to be asing and in

the same breath trying to convince you about. *n other $ords, are you the

:yundai accent o$ner $ho commands immediate respect $herever she goes

/including fro the potential father!in!la$ or are you the suave eecutive from the

4hevrolet ad $ho is ever ready to share a moment $ith loved one9 )ith a

plethora of ne$ models in the maret, and generic benefits /such as space or

fuel efficiency of a particular car segment hardly a distinguishing factor bet$een

car models, mareter are increasingly differentiating on the emotional pay!off a

particular car modelKbrand provides to the customer. This, of course, varies from

the segment to segment and also on ho$ long a particular model has been in

the maret.

#or instance, $hile advertising for entry level or smaller cars tends to focus more

on the rational or functional benefits of the vehicles, the differentiations is

increasingly on the emotional benefits $hen it comes to high end cars.

7enerally, it has been seen as one move up the value chain, the differentiationis more on the emotional pay!off. 6eople buy car as an etension of their

personality rather than ust features. & car, in *ndia, helps build up sho$ off,

social esteem value. The advertising $ould also vary according to the segment

$hich one is targeting, he says. #or instance, the 4hevrolet +ptra ad /$hich

depicts a young husband driving his $ife to see the moon on the occasion of

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-arvachauth sho$s an +ptra consumer as someone $ho believes in family

values and indulging loves ones.

F1ource5 televisionG

7)e find that typically profile of an +ptra consumer is someone $ho is in the age

group of 3!>years and has a chauffer. :e buys a car not only for himself but

also for the family and tries to mae up, for not being able to spend enough time,

by indulging love ones, points out dutta. The positioning goes $ell $ith the

companies catch lines of 7for a special ourney called life.

:igh end car maer 1oda auto too, through its advertising, attempts to connect

$ith its consumer on emotional level. 74ar is the etension of the personality and

our advertising sho$s the consumer to be youthful, image!conscious and even

bit a macho. The campaign ointly made by 1odaAs mareting department and

ad agency *') not only communicates the uality of the brand but an

appreciation for the finer things in life. The target 1oda consumer is a 1I4 &;,

primarily male, businessman or someone in the senior management, says

1hashan vaid, manager /mareting, 1oda &uto *ndia. 1urely, image building

does come higher in the consumerAs scheme of priorities $hen buying a ne$ carthan ever before.

The importance of brand image has risen sharply in the last fe$ years. &t the

segment level, the increase in importance is greater for the mid!sie cars,

indicating the relevance of brand among the more epensive maret segments.

The manufacturer need to focus more o ho$ consumers perceive them as

offering eciting cars and being committed to$ards them. 4ontemporariness of

model has a big impact on purchase decision. The perception of the car in terms

of its performance and design, uality, sales, after sales, cost of o$nership,

apart from brand image, all impact upon the purchase decision.

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&s long as advertising for cars is strongly differentiated and sharply positions the

model and at the same time satisfies a define need segment, it shall have the

capability to brea the clutter and creates a uniue and compelling reason for

consumers to purchase. 7+ne good eample of this is /O# IBO>! the osh

machine made a tremendous impact on consumers in offering to satisfy a clear

need. Nou can see some more of this $ith a recently launched premium hatch

bac as $ell.

F1ource 5 televisionG

*nterestingly, the strategy mareter follo$ changes a bit $hen it comes to

addressing the smaller car category $ith the rational benefits of a brand tending

to be the focal point of the campaign. 7)e have found that typically a buyer for a

smaller car /sub Bs > lac loos for aspects such as reliability and fuel efficiency.

This changes as $e move up since in case the consumer has been $ith the

category for a longer time and hence it is important t to tal of an emotional pay

off.

& case in point is the (aruti 800 campaign in $hich the ids $ho is playing $ith

a toy (aruti 800 eclaims to his dad /$hen ased ho$ long $ill he eep on

running the car, 7papa i -ara, petrol hatam hi nahin :onda. The ad cleverlyconveys that the car ust eeps going on and on. *t ends $ith the voiceover

telling us that (aruti 1uui is most fuel!efficient car.

:o$ever in the small car segment, the rational benefits magic is not al$ays

applicable. Tae the case of :yundai 1antro, the advertising of $hich has

evolved over the years from initially conveying mainly the functional benefits of

the model to connecting $ith the consumer on an emotional level no$. 7)hen

$e launched the 1antro, $e started $ith the positioning if the car being a

complete family car $hich $as completely rational positioning. 'ut then t$o

things happened! the product found acceptance in the maret and the

competition came up $ith similar product in the maret.

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'rand image is not driven by good advertising alone but is significantly impacted

upon by the cars performance and design, uality, and the cost of o$nership.

&mong the three, product uality has the highest correlation $ith brand image.

1mall car buyer sees capability in advertising, and fuel efficiency is relatively

more important to them. Technology, innovation, and good influence premium

mid!sie buyers. +ne reality for us in *ndia is that the maret is etremely

priceKvalue conscious. )hile maing purchases based on above, there is

rational side, $hich does have an impact on the decision on a particular mae

and model of car. 'e it rational or an emotional decision, consumers $ould have

to thin as a bevy of ne$ models flood the *ndian maret.

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O"/ectives of %tudy

The research obective is a statement, in as precise terminology as possible, of

$hat information is needed. The research obective should be framed so thatobtaining the information $ill ensure that the research purpose is satisfied.

Besearch obective have three components.

#eearch uetion C

The research uestion specifies the information the decision maing needs. The

responsibility of the researcher is to mae the researcher uestion as specific

and precise as possible. The researcher uestion ass $hat specific information

is reuired to achieve the research purpose, or ans$er the research problem. *f

the research uestions are ans$ered by the research, then the information

should aid the decision maer.

eve+o)ment of hy)othei C

& hypothesis is a possible ans$er to a uestion. Development of hypotheses

implies generating basically alternative ans$ers to research uestions. The

research determines $hich of these alternative ans$ers is correct. *t is not

al$ays possible to develop hypotheses, but efforts are to be made.

Sco)e or &oundarie of the reearch D

Defining the scope of the research or the research boundaries ensures the

desired precision or accuracy of the result.

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The researcherAs responsibility is to restate the initial variables associated $ith

the decision problem, that is convert the research problem, in the form of one or

more ey uestion formats!

:o$

)hat

)here

)hen

)hy

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O"/ectives of the (esearch

The research obectives for the proect undertaen can be defined as follo$s5

To determine the D#MO!(AP,&C *A(&AB.#% of the customers of

different brands of cars.

Examine the C)%TOM#( P#(C#PT&O'about the cars.

To judge the satisfaction level of car owners of different brands .

The research tracks responses at following two layers:

;. 6roduct related parameters

2. Dealer related parameters

To analyze the psychographic varia"lesof the customers of different

brand of the cars.

%cope of the study

*t is aimed to study the car maret and buying behavior of the customer. The

proect is analyed the demographic, psychographic and buying characteristics

of the customers in buying the car. *t includes the detailed study of customers

focusing on the various parameters that lead to identifying and understanding

the perception of the customer in buying the car brands.

%ignificance of the study

& brand is a set of epectations and associations evoed from company or

product. & brand is ho$ ey constituents! customers, employees etc.

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eperiences $hat you do. 1ome brands are of such great importance to people,

that $e spea of them as a part of oneAs life and identity, being used to epress

one. 1ome $ould say that these brands have their o$n personality, the brand

perception, $hich can be defined as the set of human characteristics associated

$ith a given brand.

'ecause many people interact $ith brand as though they $ere other people, it is

important to understand $hat a brand perception consists of, and ho$ its

characteristics can be used to affect the relationship bet$een the brands and its

users. -no$ing and understanding the brand perception gives a good insight

into this relationship, and into peoplesA attitudes to$ards the brand, and is also

an important guide to communicating the brand.

ike apparel and lifestyles brands! a car is extension of

one"s perception#. 6eople buy cars $hich either matches their personalities

or those $hich provide them opportunities of being perceived as somebody they

aspire to be. This becomes significant as consumers move up the value chain

from small compact cars to midsie and up$ards.

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(esearch Methodology

& research process consists of stages or steps that guide the proect from its

conception through the final analysis, recommendations and ultimate actions.

The research process provides a systematic, planned approach to the research

proect and ensures that all aspects of the research proect are consistent $ith

each other.

Besearch studies evolve through a series of steps, each representing the

ans$er to a ey uestion.

Besearch 6ro8ect 1teps

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*t has a logical and hierarchical ordering5

Determination of information research problem.

ODevelopment of appropriate research design.

OIecution of research design.

O4ommunication of results.

Iach step is vie$ed as a separate process that includes a combination of tas,

step and specific procedure. The steps undertae are logical, obective,

systematic, reliable, valid, impersonal and ongoing.

#0P.O(ATO(1 (#%#A(C,

The method * used for eploratory research $as

6rimary Data

1econdary data

P(&MA(1 DATA

Le$ data gathered to help solve the problem at hand. &s compared to

secondary data $hich is previously gathered data. &n eample is information

gathered by a uestionnaire. Pualitative or uantitative data that are ne$ly

collected in the course of research, 4onsists of original information that comes

from people and includes information gathered from surveys2 focus

groups2 independent o"servations and test results3Data

gathered by the researcher in the act of conducting research. This is contrasted

to secondary data $hich entails the use of data gathered by someone other than

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the researcher information that is obtained directly from first!hand sources by

means of surveys, observation or eperimentation.

rimary data i &aica++y co++ected &y !ettin! uetionnaire fi++ed &y the

re)ondent.

%#CO'DA(1 DATA

*nformation that already eists some$here, having been collected for another

purpose. 1ources include census reports, trade publications, and subscription

services. Data that have already been collected and published for another

research proect /other than the one at hand. There are t$o types of secondary

data5 internal and eternal secondary data. *nformation compiled inside or

outside the organiation for some purpose other than the current investigation.

Data that have already been collected for some purpose other than the current

study. Besearching information $hich has already been published. (aret

information compiled for purposes other than the current research effortE it can

be internal data, such as eisting sales!tracing information, or it can be

research conducted by someone else, such as a maret research company or

the *ndian overnment. 6ublished, already available data that comes from pre!

eisting sets of information, lie medical records, vital statistics, prior research

studies and archival data.

Secondary ource of data ued conit of &oo: and we&ite

(y proposal is to first conduct a intensive secondary research to understand the

full impact and implication of the industry, to revie$ and critiue the industry

norms and reports, on $hich certain issues shall be selected, $hich * feel remain

unans$ered or liable to change, this shall be further taen up in the net stage of

eploratory research.

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D#%C(&PT&*# (#%#A(C,

1TI61 in the descriptive research5

1tatement of the problem

*dentification of information needed to solve the problem

1election or development of instruments for gathering the information

*dentification of target population and determination of sampling 6lan.

Design of procedure for information collection

4ollection of information

&nalysis of information

eneraliations andKor predictions

DATA CO..#CT&O'

Data collection too place $ith the help of filling of uestionnaires. The

uestionnaire method has come to the more $idely used and economical means

of data collection. The common factor in all varieties of the uestionnaire method

is this reliance on verbal responses to uestions, $ritten or oral. * found it

essential to mae sure the uestionnaire $as easy to read and understand to all

spectrums of people in the sample. *t $as also important as researcher to

respect the samples time and energy hence the uestionnaire $as designed in

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such a $ay, that its administration $ould not eceed >! mins. These

%uestionnaires were personally administered.

The first hand information $as collected by maing the people fill the

uestionnaires. The primary data collected by directly interacting $ith the

people. The respondents were contacted at shopping malls! markets!

places that were near to showrooms of the consumer durable

products etc. The data $as collected by interacting $ith @ respondents $ho

filled the uestionnaires and gave me the reuired necessary information. The

respondents consisted of house $ives, students, business men, professionals

etc. the reuired information $as collected by directly interacting $ith these

respondents.

D#T#(M&'AT&O' T,# %AMP.# P.A' A'D %AMP.# %&4#

TA(!#T POP).AT&O'

*t is a description of the characteristics of that group of people from $hom a

course is intended. *t attempts to describe them as they are rather than as the

describer $ould lie them to be. &lso called the audience the audience to be

served by our proect includes ey demographic information /i.e.E age, se

etc..The specific population intended as beneficiaries of a program. This $ill be

either all or a subset of potential users, such as adolescents, $omen, rural

residents, or the residents of a particular geographic area. Topic areas5

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overnance, &ccountability and Ivaluation, +perations (anagement and

=eadership. & population to be reached through some action or interventionE

may refer to groups $ith specific demographic or geographic characteristics. The

group of people you are trying to reach $ith a particular strategy or activity. The

target population is the population * $ant to mae conclusions about. *n an ideal

situation, the sampling frames to matches the target population. & specific

resource set that is the obect or target of investigation. The audience defined in

age, bacground, ability, and preferences, among other things, for $hich a given

course of instruction is intended.

* have selected the sample through Sim)+e #andom Sam)+in!

%AMP.# %&4# 5

This involves figuring out ho$ many samples one need.

The numbers of samples you need are affected by the follo$ing factors5

6roect goals

:o$ you plan to analye your data

:o$ variable your data are or are liely to be

:o$ precisely you $ant to measure change or trend

The number of years over $hich you $ant to detect a trend

:o$ many times a year you $ill sample each point

:o$ much money and manpo$er you have

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%AMP.# %&4#

* have targeted @ people in the age group above 2; years for the purpose of

the research. The sample sie is influenced by the target population. The target

population represents the local regions of -urnool District. The people $ere from

different professional bacgrounds.

The details of our sample are eplained in chapter named primary research

$here the divisions are eplained in demographics section.

%AMP.&'! T#C,'&6)#

1imple random sampling techniue has been used to select the sample

& im)+e random am)+e is a group of subects /a sample chosen from a

larger group /a population. Iach subect from the population is chosen

randomly and entirely by chance, such that each subect has the same

probability of being chosen at any stage during the sampling process. This

process and techniue is no$n as Sim)+e #andom Sam)+in!, and should not

be confused $ith Bandom 1ampling.

45
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#((O(% &' T,# %T)D1

&nterviewer error

There is intervie$er bias in the uestionnaire method. +pen!ended uestions

can be biased by the intervie$erAs vie$s or probing, as intervie$ers are guiding

the respondent $hile the uestionnaire is being filled out. The attitudes the

intervie$er revels to the respondent during the intervie$ can greatly affect their

level of interest and $illingness to ans$er openly. &s intervie$ers probing and

clarifications maimie respondent understanding and yield complete ans$ers,

these advantages are offset by the problems of prestige seeing, social

desirability and courtesy biases.

6uestionnaire error

The uestionnaire designing has to careful so that only reuired data is

concisely reveled and there is no redundant data generated. The uestions have

to be $orded carefully so that the uestions are not loaded and does not lead to

a bias in the respondents mind

(espondent error

The respondents selected to be intervie$ed $ere not al$ays available and

$illing to co operate also in most cases the respondents $ere found to not have

the no$ledge, opinion, attitudes or facts reuired additionally uninformed

response errors and response styles also led to survey error.

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%ampling error

)e have taen the sample sie of @, $hich cannot determine the buying

behavior of the total population. The sample has been dra$n from only area ofstudyF-urnoolG.

(esearch Design

Besearch design is a conceptual structure $ithin $hich research is conducted. &

research design is the detailed blueprint used to guide a research study to$ards

its obective. *t is a series of advanced decision taen together comprising a

master plan or a model for conducting the research in consonance $ith the

research obectives. Besearch design is needed because it facilitates the

smooth sailing of the various research operations, thereby maing research as

efficient as possible yielding maimum information $ith the minimum effort, time

and money.

RESEARCH DESIGN

EXPLORATORY

RESEARCH

DESIGN

CONCLUSIVE

RESEARCH

DESIGN

DESCRIPTIVE

RESEARCH

CAUSAL

RESEARCH

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.imitations of the study

&ll the research proects are hindered in their smooth flo$ by some

unforeseen problems. The problems arise in the form of constraints bybudget, time and scope of the study. The current proect $as also faced

by certain problem. 1ome of the problems faced in the course of the

research are as follo$s5

& strong un$illingness on the part of the o$ners of various cars, to

participate and aid the research.

The boredom and $avering concentration that set in among the

respondents $hile ans$ering the long uestionnaire5 thus in turn led to

the difficulty of preventing incomplete uestionnaires.

1ampling error5 the research include a sample sie of @ customers $hich

is not enough to determine the brand perception of the consumers for

buying the cars. 1ince its not a census survey there is al$ays a chance of

error $hile etrapolating the results of a sample study over the population

especially in those researches $here the ualitative aspects are

concerned. 1o itAs al$ays doubtful to map the ualitative aspects using a

uantitative measure.

The study $as limited to the geographical region

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Car7s Profile

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Maruti )dyog .imited

(aruti Cdyog =imited is the premier car company in *ndia. (aruti Cdyog =imited

/(C= $as established in #eb ;?8;. The company entered into collaboration

$ith 1uui (otor 4orporation of Japan to manufacture cars. (aruti is the

highest volume car manufacturer in &sia, outside Japan and -orea.

(aruti Cdyog =imited, the largest 4ar selling company in *ndia, has many uniue

1ervice advantages for the customers. *t has bagged the #irst 6osition in JD

6o$er 4ustomer 1atisfaction *nde for the consecutive t$o years. The company

has also raned highest in the *ndia 1ales 1atisfaction 1tudy.

83 #stilo

(aruti launched all ne$ Istilo. *f you are $ondering $hy * dropped Qen from thiscarHs name then let me eplain. Istilo has got )agon BHs engine and chassis

and 1uui (B )agonHs shape. )hatever remains is taen from Qen, $ell does

anything remains actually9 Nes, LameR Lame is taen from Qen, HQen IstiloH. *n

essence itAs stylish )agon B, JapanHs (B )agon, combination of the t$o or

anything but Qen. *t seems (aruti $ants to eploit Qen brand!image hence

named this car after Qen.

Qen Istilo has the same engine /;0";cc, ">.8ps, 8>Lm, >!cylinder, ;"!valve,

(6#* #;0D 6etrol under the hood that is found in (aruti )agon B. &bsolutely

nothing has been changed ecept for the fact that this engine is much refined

and is slightly better at responsiveness and fuel economy. This simply translate

into HQen Istilo is a bit faster and more fuel economic than )agon BH. Due to

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highly good drivability, driving in city $ould be more fun $ith Qen Istilo.

Ilectronic 6o$er 1teering /not available in =S version really helps in cro$ded

traffic. +$ning and maintaining Qen Istilo $onHt be a problem, engine is proven

reliable and virtually maintenance!proof.

93 +agon ( Duo

&t first glance the (aruti )agonB Duo loos uite normal. )ell, that is if you

thin the )agonBHs boy loos are normal to start to start $ith. #ranly, for a car

that has to get around a city, * really donHt care, because the Duo is all about

=6, and the fact that it is first factory fitted =6 car in *ndia. #actory!fittedmeans one maor plus, your $arranties donHt get voided because of the gas

fitment.

There is no denying the cars cost advantage, this is the cheapest (aruti vehicle

to run, and that in itself is a massive statement. The redesign of the car hasnHt

ust meant a fresh eterior looE it has also meant ne$ interior ! rotary controls

on the panel and a very neat looing display $ith an all ne$ 1peedo.

The problem is that despite the not insignificant cost savings, you save a rupee a

ilometer on =6 over 6etrol, $hich even maes the etra Bs 2>000 you have

to pay for the car seem $orth it, the Duo ust $heees at times. &nd this is

despite t$o important facts, first =6 has more energy than 4L /that other

gas and because this is a company designed car, (aruti engineers have really

played around $ith the engines tuning.

:3 %wift

4ompeting $ith the other cars of (aruti, (aruti 1$ift is gradually maing its

position in the $orld of mid!sied family car. (aruti 1$ift has come up $ith the

special technical specifications of ;" valve >!cylinder, ;300 cc engine generating

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po$er. (aruti s$ift is euipped $ith various safety features and $ell advanced

euipments. 3 assist grips, 3 spoe urethane steering $heel, antenna, cabin

light /3 position, console bo /lo$er, cup holders /front 2, rear;, front door trim

pocets, green tinted glass $indo$, halogen headlamps, headlamp leveling

device, heater and manual &ir conditioning, +MB( /internally adusted, rear fog

lamps, $ind screen $iper 2 speed plus ; speed intermittent, tailgate opener ey

type, trip meter /digital display, sun visors /both sides, brae assist , child loc

/rear door, high mounted stop lamp, po$er steering, rear seat belts etc. are the

features available in this model. &part from the features found in other model,

striing features of this model are blac colored & ' pillars, ;2v accessory

socet in center console, day and night rear vie$ mirror, door aar $arming

lamp, driverHs seatbelt $arning lamp, tachometer, driverHs seat belt $arning

lamp, vanity mirrors /sun visor co!driver side, rear seat head restraints, fabric

accented door trims, central door locing /> door, front and rear electronic

$indo$s, front fog lamps, light offK ey reminder, manual air!conditioning, ey

not removed $arning buer, etc

;3 Maruti Baleno

This mid sie car $ith its bold and elegant loos along $ith its smart

performance is becoming the part of the dream of many car lovers.

,o+or

6earl 1ilver

1ily 1ilver

1uperior )hite

(idnight 'lac

'ean 'lue

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&long $ith the features present in =i, there are many other etra features

available in this model lie leather steering cover, automatic climate control, rear

spoiler $ith =ID stop lamp, stylish alloy $heels, (63 music system, silver finish

centre garnish, remote eyless entry etc.

has various effective comfort and safety features lie tilt adust po$er steering,

central loc door locing, electric $indo$s, tachometer, trip meter, ey not

removed $arning buer, &4 illumination system, cigarette lighter, ash tray

illumination, electrically operated &4 louver s$itches, semi concealed $indshield

$iper /2 speed plus 2 controlled intermittent, front and rear mud flaps, dayKnight

inside rear vie$ mirror, velour floor carpet, front door armrests and pocets /both

sides, rear door child loc, locable glove bo, side impact beams etc.


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The basic model of (aruti 1uui Isteem includes various safety features and

uniue configuration in it. &ir conditioned (aruti 1uui Isteem for the comfort

of the o$ner provides the facilities of cabin heater, front seat bac pocets /both

sides, front door pocets /both sides, air flo$ controls, remote operated fuel

tan lid and trun lid, coat hanger hoo on grip assistance etc..

*nstrument panel of this model includes tachometer and speedometer $ith sporty

dial. 1ecurity measurement of this model has headlamp leveling device,

collapsible steering column, locable glove bo, child proof rear door locs,

halogen headlamps, prismatic day!night inside rear vie$ mirror etc.

This model is more upgraded version of (aruti 1uui /=. &part from thefeatures that are already in (aruti1uui /=, there are other fe$ more added

features eisting in (aruti 1uui /=i. #or comfort these models specially have

rear vie$ mirror on the left side, po$er steering and po$er $indo$ /front.

,yundai Motor

:yundai (otor *ndia =imited /:(*= $as established in ;??" and is a $holly

o$ned subsidiary of 1outh -orean multi national, :yundai (otor 4ompany.

:(*= is the fastest gro$ing and the second largest car manufacturer in *ndia and

presently selling 30 variants of passenger cars in si segments. The 4ompany

has set up more than @0 dealer $orshops that are euipped $ith the latest

technology, machinery, and international uality press, body and paint shops,

across the country, thereby providing a one!stop shop for a :yundai customer.

:yundai also has a fleet of @8 emergency road service cars that can provide

emergency service to all its customers anytime, any$here.

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=3 ,yundai %antro

*n the field of mid sie car, 1antro Sing is capturing the maret very rapidly. *ts

design, style, space and other special features has made it one of the highestpurchasable cars among any economy class.

It ha five variant

Santro HB

Santro HB F>on A,G

Santro H$

Santro HO

Santro A

&long $ith the other features that are present in 1antro S- /Lon &4, other

features present in this model are air conditioner, day and night inside rear vie$

mirror, chrome; radiator grille etc. &long $ith the features available in 1antro

S-, added features in this model are > doors 4=1, passenger side +MB(, tinted

glass, map pocet front door driver side, front door full sie arm rest, door trim

$ith fabric insert, hydraulic po$er steering, po$er $indo$s /front etc

>3 !et

:yundai (otors launched small family car et at &ugust 200>. Iuro ***

emission norms fulfilled 4ar, et po$ered by ;300 cc. engine. +nly the petrolversion of this car $as launched initially.

55
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here are four variant found in thi car

yundai 4et; 4$S

yundai 4et; 4$H

yundai 4et; 47S

This model has highly advanced features lie &4 $ith > speed blo$er, ash tray

$Ko illumination, center console $K pen and ug holder, "05>0 rear seat split,

vanity mirror passenger side, rear defogger, height adustable seat belts /front,

$aist line molding, tilt steering, map pocets, front and rear po$er $indo$s, rear

seat bac inclination/> position, digital cloc, rear $iper and $asher, front for

lamp, body color radiator grille, rear bumper reflectors, rear mud guard etc. #e$

features to vie$ comfort and safety in mind, this model is being speciallyeuipped $ith rear $iper and $asher, rear defogger, alloy $heels etc. This

model has fe$ important features lie height adustable front seat belts, body

colored radiator grille, rear bumper reflectors etc.

?3 ,yundai Accent

:yundai &ccent $as ceremonially launched at #ranfurt *nternational (otors

1ho$ on ; 1eptember, ;???. *t came in t$o versions, i.e. 6etrol and Diesel

Mersions in *ndia initially, $hile in Iurope it $as introduced only $ith the 6etrol

version. *nitially &ccent came up $ith the manual transmission $hich in turn

started getting available in automatic transmission. To no$ about the models of

this car, please see this follo$ing tet5

yundai Accent 4$E

yundai Accent 4$S

yundai Accent 7iva

yundai Accent 7iva ,#i

56
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yundai Accent ,#i

This model has many distinctive features lie "05>0 split folding rear seats,

automatic trun lamps, body colored door handles, bumper $ith or $ithout

molding, door trims and consoles, high mounted stop lamps /:(1=, (ist /one

stoe $iper blades, semi cloth upholstery, trip odometer, rear license garnish,

$aistline molding, $iper /3 no. of speed, cross bar under dash board, crumple

one, dual horn, engine sub frame etc. #eatures that are striing in this models

are tinted glass, remote boot release, split rear seats, tachometer, remote fuel

cap release, sun visors $ith vanity mirror, po$er telescopic antenna, luury full

cloth upholstery, energy absorbing collapsible steering column, full sie $heel

cover etc.

@3 *erna

The most a$aited Merna finally launched in *ndia. Merna can be considered as

one of the most shoc $ave!creating cars in *ndiaE $ithin first five days of its

launch over 2000 Merna cars had been sold. 4ompetition seems to be in shoc.

4omfort levels are uite good, * $asnHt epecting them to be lie this, and there

is marginal refinement over &ccent. 1uspensions give you a feel, Hyes this car is

meant for *ndiaH, no bumpy rides. 4ar handles very $ell too. *nteriors are not

class, as epected, though they donHt give a cheap feeling at all. 4ity is $ay

ahead of Merna in interiors and room. Driving position is good and to mae it

even better, height!adustable driver!seat is provided in higher versions. &4 is

uite effective, cools the cabin uicly. Due to enough po$er, s$itching on &4doesnHt mae any difference in performance.

Iterior design is satisfactory. *ts neither great to boast about nor is bad to

complaint about. =ie all other :yundai car designs, people have started to

criticie :yundai for design of Merna. &fter having first glance of Merna, one of

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4ar$ale.com colleagues called out, H:ey, it loos lie 'aleno from front and

#iesta from behindRH. Nou canHt help it, itAs inevitable $ith :yundai. &'1 is

available as optional across the range. *tAs a bit disappointing that &irbags are

not provided even as optional. 4entral =ocing is available as standard feature in

all the versions and eyless entry in petrol versions ecept the lo$est!end Merna

i.

#inally *ndian automotive industry is taing good shape. )e have enough

options in every segment available. #rom (aruti to Tata to :onda to

Mols$agen to '() to 6orsche, every maor $orld car player is interested to

sell its cars to *ndian people. Iveryday $e have ne$s about some ne$ launch.

Merna is ust launched and #ord has ust announced launch of ;." TD4i /dieselin t$o months time, (aruti has confirmed discontinuation of 'aleno and arrival of

ne$ 'aleno early net year and last but not the least 4hevrolet is planning diesel

&veo soon.

Tata Motors .imited

Tata (otors =imited is *ndiaHs largest automobile company, $ith revenues of Bs.

2>,000 crores in 200!0". *ts name comes first in the category of commercial

vehicles and the second largest in the passenger vehicles, mid sie car and

utility vehicle segments. The company is the $orldHs fifth largest medium and

heavy commercial vehicle manufacturer.

+ver 3. million Tata vehicles is moving on *ndian roads, since ;?>. *ts

manufacturing plant is located at Jamshedpur, 6une and =uc no$

83 Tata &ndica *9

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:aving attributes of three popular cars, Tata *ndica is ruling the maret. (aing

of Tata *ndica $ith the concept of main distinguishing features of three popular

cars i.e., $ith the overall structure of (aruti Qen, interior space lie ambassador

and cost nearly lie (aruti 800 $as a challenging venture of Tata (otors.

*ts fully foldable rear seat has made this car more accommodating for etra

luggage. #or safe and secure driving and to give proper comfort, side!impact

beams, rigid monochrome frame and child safety locs are attached to this car.

ifferent ata Indica mode+ are

ata Indica 72

o D=S

o D=

o D=1

o D=I

)ith its maret catching loos and fe$ striing features have set a trend for the

choosy buyers. *ts po$er steering, central locing system, four po$er $indo$s

have not only made this comfort driving car but also give assurance for the

safety. To mention more about convenience of driving, :M&4 system provides

good cooling effect even in a sultry summer days. Door handles, body colored

bumpers, +BM( and $heel arch flair are fe$ more advantages that the o$ner of

this car can easily avail.

To assure safer driving along $ith the elegance and appeal of the car, this model

is euipped $ith body colored bumpers, the $heel arch flairs, internally

adustable +MB( and central locing system. To avoid any inconvenience in

operating the $indo$, front $indo$s are po$er $indo$s. To avoid the scorching

heat in a summer days, :M&4 system of cooling can soothe anybody inside the

car

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883 Tata &ndigo

*ndigo $ith its maret catching features lie leather upholstery, beige interiors,

=4D screen etc has made its position in the automobile industry.

Indi!o i avai+a&+e in etro+ and iee+ mode+.

etro+ 7ariant

o *ndigo =I

o *ndigo =1

o *ndigo =S

*t is euipped $ith various features lie manual po$er steering, manual front and

rear $indo$s, grey bumpers, half $heel covers, partial fabric lining on seat,

molded roof lining, high mounted stop lamp etc. To mention fe$ of the features

present in this model along $ith the features of rest of the t$o models, there are

available po$er steering and po$er $indo$s, rear fog lamps, rub rails on door,

full $heel covers, both sides outer rear vie$ mirrors, rear defogger, central

locing, audio $arning signal for driver seat belt and many more.

893 &ndigo Marina

#ully euipped $ith 32 bit micro processor and ;>0 cc (6#* 6etrol engine, this

variant delivers maimum po$er of 8 61 V 00 rpm and maimum torue of

;;gm V 3000 rpm.

*t has various features lie &4 system,2 spoe $heel, grey bumpers, chrome!

plated grill lip, blac door handles, roof rails, partial $heel covers, digital cloc,

internal antenna, partial fabric seats, anti!submarine type front seats, child safety

locs on rear doors, collapsible steering column, side impact beams etc

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This model along $ith the features of *ndigo (arina =I comes $ith various

other features lie :M&4 system, aluminum gear shift nob, > spoe $heel,

po$er steering, body colored bumpers, rub rails on door, full $heel covers,

stylish grip and cover for hand brae lever etc.

Chevrolet

*ts ing lie entry happened in *ndia in ;?28 $ith its Lational 1eries &' touring.

Beliability of this car $as proved by its ;@; cubic inches, 2>.@hp four cylinderengines.

eneral (otors, parent company of 4hevrolet, $as the first in setting up

assembly plant in *ndia. #irst office of 4hevrolet $as located at (umbai and its

assembly plant $as in 1e$ree.

8:3 Chevrolet Aveo

)ith the assurance of safety and technologically advanced euipments,

4hevrolet &veo provides complete statement of reliability and efficiency. 1afety

features lie tailor $elded blans, high! strength steel structure, '!pillar, height

adustable safety belt anchors, rear child safety door locs, front safety belt

pretension etc really confirm the security of the passenger.

It ha four variantD

Aveo 1." E

Aveo 1."

Aveo 1." $S

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Aveo 1.6 $

*t is $ell euipped $ith ;.>= D+:4 ?> 61, 1peed (T, chrome radiator grille,

$ide ;8K"0 B;> tyres, pullout type door handle, t$o tone beige interiors, po$er

steering and po$er $indo$, central locing, rear defogger $ith timer, remote

trun lid opener, engine service soon indicator etc. *t is $ell euipped $ith ;.>=

D+:4 ?> 61, 1peed (T, chrome radiator grille, $ide ;8K"0 B;> tyres,

pullout type door handle, t$o tone beige interiors, po$er steering and po$er

$indo$, central locing, rear defogger $ith timer, remote trun lid opener,

engine service soon indicator etc. *ts main mentionable features along $ith the

other features $hich are associated $ith the rest of the models, are ;."= D+:4

;02 61, speed (TE double D*L (63 system $ith " speaersE rear spoiler $ith4:(1=E chrome coated eterior handles and trun lid garnishE ;> alloy $heelsE

electrically adustable +MB(E $ood finish on *6 and door trimE car alarm and ey

less entry system.

8;3 Optra

)ith its ;.8 litre engine capacity runs up to 8.; mpl inside the city cro$d roads

and ;;.2 mpl on the high$ay. *ts luurious and comfortable interior include

center console, central armrest, flip do$n rear armrest, automatic climate control

air conditioners, enough legroom space, sunglass holder, mobile phone holding

space in the rear door, cup holders etc.

It ha variou variant

1.6 E+ite

1.6 $S E+ite

1.6 $ #oya+e

1.8 $

1.8 $ A

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*t is euipped $ith various comfort and safety features lie driver seat height

aduster, plush feel beige fabric, silver finish on control panel and luurious $ood

finish on *6 and door boards etc. &long $ith the features present in ;." Ilite, this

is available $ith tilt steering, remote eyless entry $ith chirp and trun opening,

&)*1, driver seat lumbar support, front fog lamps, body colored outside mirrors

and door handles etc. There are many etra features present in this model along

$ith the features of ;." =T Boyale lie automatic climate control system, all

round $ood finish including 4entre 6anel, tilt adustable front headrests, ;

alloy $heels $ith &'1 and I'D as option at etra cost, rear disc braes, dual

airbag, double D*L audio system $ith 4D changer.

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&'D&'!% A'D

A'A.1%&%

Cross Ta"ulation

64


65/99

J1.)hy you bought your present car9 6lease ran from the highest order ofpreference

;. *ncrease in disposable income2. 'etter safety at roads3. #amily needs>. *ncrease in family sie. 1uits your lifestyle and personality

3(

12

1*

23

(

0

;0

;

20

2

30

3

>0

Increase in

disposable

income

Better safety

at roads

Family needs Increase in

family size

Suits your

lifestyle and

personality

6otive

6otive /or &uyin! a car

1eries;

&nterpretation5

&s per the analysis sho$s, increase in disposable income seems to be themost important reason for buying a car. This trend is reflected in the gro$thof the 6er capita Disposable income and conseuently the gro$th of the*ndian automobile industry especially in the ' and 4 segment cars. 1imilarly,the gro$ing family needs lie $oring partners, increasing family sie, status,etc. add to the motives of buying a car.

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66/99

J2. Nou decided to buy a car brand because of /rate best 3 factors from ; to 3 inorder of your preference

;. &ffordable price2. Technical superiority over competition3. 4omfort>. (anufacturerAs image. Malue for money". 1afety@. &fter sale services

Product Specific Reasons for Buying a Car

32

@

?;2

28

;0

2

&fforable prices

Technical superiority

4omfort

(anufacturerHs image

Malue for money

1afety

&fter sale services

&nterpretation5

*ndian maret is still the hard nut to crac for most of the automobilemanufacturers. Though the *ndian car industry is among the fastest gro$ing car

marets of the $orld still the *ndian psyche is too comple for the manufacturers

to understand. The most important reason for buying a car $hen it comes to '

and 4 segment cars seems to be Wvalue for moneyA. 32% of the respondents

66


67/99

suggested that affordable prices are the most important factor $hile purchasing

a car. This is the reason for sticing to a particular segment till the net

substantial rise in the personal disposable income. This reason is follo$ed by

WMalue for moneyA $here the customers loo for the best product, best services

and best repute all bundled in one $ith the best deal they can strie. This

eplains the reason for the stagnant or sudden gro$th in sale of ' and 4

segment cars ust before budget and near occasions lie Di$ali.

67


68/99

Product %atisfaction .evel

J3. 6lease rate your eisting car in terms of understated *nterior Designfeatures on a scale of ; to $here

1 i!h+y iatified2 iatified3 >eutra+" Satified% i!h+y Satified

Interior y)e 1 2 3 " %

&eats design

eg 'oom

(ash )oard

$nterior *olour+usic &ystem

,djustable -ront seat eadrest

Interiors for Segment B cars

3> >

3 >> >

3

> >

> >3

>

3

3 33

>>

3

>

> >>

>

>

>

;; ; ; 3

;

>

3 3 3 33 3 3

0%

20%

>0%

"0%

80%

;00%

MarutiEstilo

MarutiWagon

R

MarutiSwift

Indica!

"#eo Santro $etzCars

$eve+ofatifaction

&dustable #ront 1eat :eadrest

(usic 1ystem

*nterior 4olour

Dash 'oard

=eg Boom

1eat Design

68


69/99

&nterpretation5

*nteriors play a very important role in deciding the sale of a car. (ore plush,

comfortable and eotic the interiors are more are the chances of its beingpopular among the customers. #or this reason manufacturers spend billions of

dollars every year on BD to continuously improve the interiors of their cars.

1eats, leg room, dash board, armrests etc are fe$ of the options $hich count for

the interiors. &s the analysis sho$ et scores substantially high $.r.t. its

counterparts on the account of music system installed. 1imilarly, *ndica M2 races

far ahead as far as leg room is concerned. :o$ever, )agon B fares badly on

this front. +verall, almost all cars get a mied response in this segment as far as

the interiors are concerned.

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70/99

,utomer Satifacton &aed on Interior of ,ar

> > > > > > >

> > >

3 > >

3

> > >>

>>

>

3 3 3 > >

3 3 3 3 3 3 3

0%

20%

>0%

"0%

80%

;00%

Esteem

Balen

o

Indigo

Indigo

Marina

%ptra

"ccent

erna

Cars& Interior Parameters

Satifaction+eve+Fin

3 3 3 3

33

3

3 3 3 3

3 > >

> >

0%

;0%

20%

30%

>0%

0%

"0%

@0%

80%

?0%

;00%

Esteem Baleno Indigo IndigoMarina

%ptra "ccent erna

Car&s Fuel Efficiency Param eters

Cust

omerSatisfaction,e#el'in-age

terms) 1tability at higher speed

6ic up

(ileage

#uel 4onsumption

&nterpretation5

1egment 4 cars are no$n as hybrid car segment bet$een the ' segments fuel

efficiency $ith the luury of the D class. 4hecing the same it seems that most

of the cars in this segment are placed much closed to each other $ith very little

difference here and there. (ost of the cars are fuel efficient $.r.t their $eights

and pic ups. *ndigo fares as the best car in terms of fuel efficiency. 'aleno fares

a little bit behind than its counterparts as far as the stability at high speeds and

mileage is concerned.

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76/99

Dealer %ervice %atisfaction .evel

P;. 6lease rate your Dealer on the understated parameters on the scale of ; to

$here

1 i!h+y Satified

2 Satified

3 >eutra+

" iatified

% i!h+y iatified

1 2 3 " %(istance / 0roximity1

,dvertisements /0romotions1

Technical -acilities

*ost of &ervice

,vailability of &pares

$nformation 0rovided

&ervice Time

*harges

&taff

*ar andling / (elivery 2 service1,ssured *ustomer Transactions

,mbience of &ervice *enter

-inance / *redit1 &chemes

Dealers are the middle men bet$een a car manufacturer and its customers.

Dealer thus becomes the most important lin in oining the company to its

customers as he is the person $ho $ill sell the product, $ill deliver