7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 1/88
1 | P a g e
OVERVIEW OF THE INDSTRY
AUTOMOTIVE INDUSTRY IN INDIA
One of the major changes in the industry has been the opening up and growth of several
emerging markets. India is one of the most important emerging car economies in the world
today. The Indian automobile industry comprises of the commercial vehicles, multi-utility
vehicles, passenger cars, two wheelers, three wheelers, tractors and auto components.
The government of India‘s new automobile policies like reduction of excise duty to 40% and
import duties to 50% attracted a large number of automobile companies to India which includes
General motors, Ford, Toyota, BMW, Chrysler, Honda, Hyundai, Fiat, Hindustan motors, Skoda
Auto, Telco and one indo-Japanese venture, Maruti already in the passenger car market with
70% of the market share which makes it the numerous Uno player in automobile market.
In the initial years after the independence Indian automobile industry was plagued byunfavorable government policies. All it had to offer in the passenger car segment was a 1940s
mirrors model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800.
The automobile sector in India underwent a metamorphosis as a result of the liberalization
policies initiated in the year 1991. Measures such as relaxation of the foreign exchange and
equity regulations, reduction of tariffs on imports, and refining the banking policies played a
vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto
sector consisted of just a handful of local companies. However, after the sector opened to foreign
direct investment in 1996, global majors moved in. Automotive industry in India also received an
unintended boost from stringent government auto emission regulations over the past few years.
This ensured that vehicles produced in India conformed to the standards of the developed world.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 2/88
2 | P a g e
Indian automobile industry has matured in the last few years and offers differentiated products
for different segment of the society. It is currently making inroads into the rural middle class
market after its inroads into the urban markets and rural rich. In the recent year Indian
automobile sector has witnessed a slew of investments. India is on every major global
automobile player‘s radar. Indian automobile industry is also fast becoming an outsourcing hub
for automobile companies worldwide, as indicated by the zooming automobile exports form the
country.
Due to rapid economic growth and higher disposable income it is believed that the success story
of the Indian automobile industry is not going to end soon.
Some of the major characteristics of Indian automobile sector are:
• Second largest two-wheeler market in the world.
• Forth largest commercial vehicle market in the world.
• Forth largest passenger vehicle in Asia and 11th largest in the world.
• Expected to become the world‘s third largest automobile market by 2030. Behind only
china and USA.
• The largest three wheeler market in the world.
• The fifth largest commercial vehicle market in the world.
• The fourth largest tractor market in the world.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 3/88
3 | P a g e
BIRTH OF THE CAR
In 1769 the very first self-propelled car was built when Nicolas Cugnot, a French
military engineer designed a steam powered road-vehicles
The vehicle was built at the Paris Arsenal, and was used by the French Army to move cannons. It
had three wheels with the engine in the front along with the boiler. While Cugnot's 'car' was
capable of attaining speeds of up to 6cars/hour, it was far too heavy and slow to be of practical
use.
In 1771 he again designed another steam-driven engine that ran so fast that it rammed into a
wall, recording the world‘s first accident.
In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. He to
develop the world‘s first vehicle to run on such an engine, one that used a mixture of hydrogen
and oxygen to generate energy, subsequently used this.
This spawned the birth of a number of designs based on the internal combustion engine in the
early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean
Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again
built an experimental vehicle driven by his gas-engine, which ran at a speed of 3 kms/hour.
These cars became popular and by 1865 could be frequently espied on the roads.
The next major leap forward occurred in 1876 when the four-stroke engine was devised. Gottileb
Damlier and Nicolas Otto worked together on the mission till they fell apart.
Daimler created his own engines that he used both for cars and for the first four wheel horseless
carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own
advanced tri-cycle, which proved to be the first true car.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 4/88
4 | P a g e
After all this experiments we can say that the complete car was birth only in 1885 that the first
real car rolled down on to the streets. The earlier attempts, though successful, were steam-
powered road-vehicles.
The season of experiments continued across the seas in the United States where Henry Ford
began work on a horseless carriage in 1890. He went several steps forward and in 1896,
completed his first car, the Quadricycle in 1896. This was an automobile powered by a two-
cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in 1908 he
catapulted his vehicle, Model ‗T‘ Ford to the pinnacle of fame. Continuing with his innovations,
he produced this model on a moving assembly line, thus introducing the modern mass production
techniques of the automobile industry.
BEGINING OF CAR IN INDIA
From the singsong rhythm of the bullock cart to the jet-age, India has traveled a long way. An
average Indian‘s dream car may not be the design Honda or the stately limousine, but he sure can
dream, and afford, the Maruti now.
It was in 1898 that the first motorcar rode down India‘s roads. From then till the First World
War, about 4,000 cars were directly imported to India from foreign manufacturers. The growing
demand for these cars established the inherent requirements of the Indian market that these
merchants were quick to pounce upon.
The Hindustan Motors (HM) was set up in 1942 and in 1944; Premier Autobackmobile (PAL)
was established to manufacture automobiles in India. However, it was PAL who produced the
first car in India in 1946, as HM concentrated on auto components and could produce their first
car only in 1949.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 5/88
5 | P a g e
It was left to another company, Mahindra and Mahindra (M&M) to manufacture utility
vehicles, namely the American Jeep.
In the 50s, the Government of India granted approval to only 7 car dealers to operate in India
- HM, API, ALL, SMPIL, PAL, M&M and Telco. he protectionist policies continued to remain
in place. The 60s witnessed the establishment of the two-three wheeler industry in India and in
the 70s, things remained much the same.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 6/88
6 | P a g e
ECONOMIC INDUSTRY ANALYSIS
BACKGROUND
India is considered as a back office of world, but in the last few years we have seen a tremendous
growth in manufacturing sector as well. India ranks 3 rd in GDP as per PPP (purchasing power
parity) in world, India is a member of all the major groups of world like G-20, BRICS, and one
of the founder member of WTO, as per current data of IMF India‘s per capita income is 3694$.
Since India has adopted the LPG policy in 1990 it has grown tremendously, Since than it has
recorded continuous high greet rate and have attracted the investors from all over the world to
become a prime investment destination. Innovation and efficiency are the two keys of India
which is helping them to be competitive among the world. India due to its huge talent pool is
attracting all the major companies from the world who are investing in India for its R&D,
realizing the same, US giant GE in 2000 set up a center for developing products for global
market.
But in last few months India has been facing various problems due to which global rating agencyStandard and Poor‘s downgraded India‘s long-term sovereign rating from stable to negative,
which will affect the way foreign investors see India. This down grading may lead to:
Lower down of Business and Investment sentiment
Cost of borrowing of Indian companies may go up
Foreign money in stock market may slow down
Rupee and bonds may be hit
Contribution in India‘s GDP:
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 7/88
7 | P a g e
Indian GDP growth is being almost consistent; RBI has adopted various monetary policies so as
to maintain a steady growth in the country and to support the Indian economy.
18%
26%55.60%
Sectors Contribution
Agriculture
Industry
Services
Data Source: Wikipedia
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 8/88
8 | P a g e
As we can see that even though there is a decrease in the growth of GDP it is still among one of
the highest growing country of the world.
If we will compare India‘s GDP with world GDP than its still growing at much higher rate than
the
worl
d
GDP
.
One of the biggest problems faced by India is the continuously rising Inflation rate in the
country.
3.554.06 3.96
1.49
-2.33
4.21
9.32 9.279.82
4.93
9.1 8.81
-4
-2
0
2
4
6
8
10
12
2005 2006 2007 2008 2009 2010
World GDP growth
India GDP growth
As per World Bank
Data
(2011 data not given)
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 9/88
9 | P a g e
Inflation stands out to be at a level of 7.23 in the month of April 2012 which is very high
compared to other growing economies. The average inflation rate in India was 7.99 percent
reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31
percent in May of 1976.
The Automobile Industry designs, develops, manufactures, markets, and sells vehicles, and is
one of the world's most important economic sectors by revenue.
Automobile Industry, in whole world, as well as in India, is one of the most important sectors of
the economy. As Automobile industry has a very deep forward and backward linkage with many
key segment of economy, it has a very strong effect on Indian economic growth.
The first Motor Car in India was imported in 1898. Later on, the British and wealthy Indians
imported completely-built cars and commercial vehicles. By the end of WW1, 4000 vehicles
were being imported into India per year. Following an encouraging demand forecast, GM and
Ford set up their assembly plants in the early 1920s and 1930s respectively. The number of
automobiles
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 10/88
10 | P a g e
INDIAN AUTOMOBILE HISTORY
Indian Automobile History can be divided in 4 parts:
Pre 1984 period: In this era cars were considered a luxury product, government had full
control over the production, Manufacturers were given the license to produce a
predetermined quantity, and expansion was restricted by government. In this period
market was dominated by six licensed manufacturers: TELCO, Ashok Leyland, Mahindra
& Mahindra, Bajaj Auto, Hindustan Motors, and Premier Automobiles.
1985 – 1990: In this period Maruti Udyog was formed with the joint venture between
GOI and Japanese major Suzuki. This led to give a better choice to the consumers in
India.
1991 – 2000: Economic liberalization started in 1991 in India which later on helped todelicense the passenger car segment in 1993. Hero Honda emerged as a major player in
two wheeler segment. In this era a much sophisticated and unregulated automobile
market started growing with the help of new foreign technology and huge investment
made by international player, as the competition increases advanced technology was
introduced to be competitive in market. A large chunk of money was spent on increasing
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 11/88
11 | P a g e
the service presence so as to support on road vehicles. Auto finance also started as a key
factor to affect the demand for the vehicle.
Post 2000: As the competition increases the government also helps the industry by
removing quantitative restriction and allowing 100 % FDI in Automobile industry. It also
gave helping hand to various Local manufacturers who initiated production of Vehicle.
Manufacturers focused on improving the output keeping in mind Quality and
environment prospects.
Automobile industry is one of the fastest growing Industries in India, Currently India is ranked
as:
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 12/88
12 | P a g e
6th in Commercial and Passenger vehicle manufacturing.
Asia‘s 3rd largest exporter of Passenger cars.
One of the fastest growing market
One of the highest contributor in Indian GDP.
The Indian auto industry grew at 13 per cent in last five years.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 13/88
13 | P a g e
MARKET OVERVIEW
The Automobile industry revenue is projected to reach US$ 145 billion by 2016.
Automobile production increased from 8.5 million units in 2004 – 05 to 14.1
million units in 2009 – 2010 at CAGR of 10.7 per cent.
Domestic vehicle sales improved at 26.8 per cent y-o-y, from 9.7 million units in
2008 – 09 to 12.3 million units in 2009 – 2010.
Amongst April 2000 and August 2010, increasing foreign direct investment (FDI)
inflow to the automotive sector, including individually automobile and autocomponents, totaled US$ 4,710 million.
Inflow of FDI in 2009 – 2010 for the auto components sector was recorded at US$
1.2 billion, which was 4 per cent of the total FDI inflow in the country in the same
period.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 14/88
14 | P a g e
This chart shows the % change in production on YOY basis of India and the rest of the world,
it‘s clearly visible that even at the time of downturn of world economy India‘s automobile
production was steady due to high demand in local market.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 15/88
15 | P a g e
CURRENT STATISTICS
Mainly Automobile Industry includes:
Passenger Vehicles
Commercial Vehicles
Three Wheelers
Two Wheelers
As per latest data of SIAM the automobile industries market is divided as:
(as per SIAM - Society for Indian Automobile Manufacturers)
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 16/88
16 | P a g e
Passenger Vehicles:
Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share while
the Challenger Hyundai is far behind it.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 17/88
17 | P a g e
SWOT ANALYSIS OF THE AUTOMOBILE INDUSTRY
STRENGTHS
1. Low labor cost advantage
2. Government subsidies for manufacturing plants
3. Strong designing skills etc.
WEAKNESS
1. Low productivity of labor.
2. High interest and overheads costs make the production less competitive
3. Different forms of taxes increase the overall cost of production
4. Low investment in R&D.
5.
Less Infrastructural development.
OPPORTUNITIES
1. Commercial vehicles: as Supreme Court ban on overloading.
2. Rapidly growing mining and construction activity.
3. Reduction in excise duties.
4. Continuous increasing rural demand.
5. Increase in the per capita income of people.
THREATS
1. A continuous increase in input costs
2. Increasing interest rates
3. High competition
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 18/88
18 | P a g e
REASON FOR HIGH GROWTH
The Indian automobile industry‘s growth is driven by various factors which include:
Reason for Highgrowth of
Automobile
Industry in India
Economic
Growth
Rural
Economy
Disposable
Income
Infrastructure
Development
Low cost
Labor
Large local
demand
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 19/88
19 | P a g e
All these things are helping India so as to become a global hub for automobile industry
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 20/88
20 | P a g e
UNION BUDGET 2012-13 IMPACT
Union Budget 2012-13 Impact on Automobile sector can be seen as:
Finance minister Mr.Pranab Mukherjee while announcing Union Budget has made following
provision for Automobile industry:
Excise duty increased from 22 to 24%
No extra tax for diesel vehicles, which is a big relief to the auto sector.
Basic Excise duty hiked to 12 per cent from 10 per cent Budget 2012 to add additional
revenue of Rs 18,650 crore
Large cars will entitled to up to 27 per cent duty, MUVs, SUVs enhanced
Cars to attract ad valorem rate of 27 per cent
Standard excise duty rate raised from 10 per cent to 12 per cent,
LNG not entitled for customs duty.
Post budget Some of the Companies announced an increase in price of their vehicle and said that
it‘s not a good news for industry though government has not announced extra tax on diesel
vehicle which was considered as a good signal apart from that a much speculated thing of
deregulating diesel prices was also missing from the budget, may be it is due to our excess
amount of dependence on diesel for transportation which will lead to increase in price of
necessary goods.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 21/88
21 | P a g e
PROBLEMS OF AUTOMOBILE INDUSTRY
As customers feared a rise in price of vehicle they rushed to buy vehicle due to which car sales in
India increases 13.11 percent.
50 basis point cut in repo rate announced by RBI will be good for auto sector as 85% of the
vehicle purchased in India are being financed, so deduction will help the sector
Market Reaction:
All auto companies‘ shares prices in fear of increase in tax had come down but after the
announcement of budget share prices showed a good growth as investors got confidence in the
auto industry.
Current
problems of
Automobile
Industry
Swelling
interestrates
Inflationary
trends
Rising fuel
prices
Lower
growth rate
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 22/88
22 | P a g e
MICHAEL PORTERS 5 FORCE ANALYSIS
(Michael Porter five force analysis of Automobile Industry)
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 23/88
23 | P a g e
Some Important points about Automobile industry:
Supply: Overall Indian Automobile industry has a marginal excess capacity.
Demand: It‘s largely cyclical and dependent on various socio economic factors eg: per capita
income, disposable income, Seasonality etc.
Entry Restriction: Due to high amount of capital involved, Distribution network, Availability
of auto components and higher technological advancement.
Bargaining power of supplier’s: Low, due to stiff competition among rivals.
Bargaining power of customers: Very high, due to high availability of options.
Competition: High competition as technological advancement takes very less time, large no. of
manufacturers.
Even after high growth of industry, India is very less penetrated. As per a survey India has only
10 passenger vehicles, 4 commercial vehicles and 43 two wheelers per 1000 people. while
Globally, these figures are very high. For instance, Germany has 565 cars Korea has 238 cars
and Thailand 57 cars per 1000 population. So there is a huge scope for Automobile Industry.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 24/88
24 | P a g e
OVERVEIW OF THE COMPANY
HISTORY
Skoda works was established as an arms manufacturer in 1859, but did not develop automobiles.
The origin of what became Skoda auto goes back to early 1890s where, like many long-
established car Manufacturers Company started out manufacturing bicycles. It was 1894, and 26-
year old Vaclav klement, who was a bookseller in Mlada Boleslav, in today‘s Czech Republic,
which was then part of Austria-Hungary, was unable to obtain spare parts to repair his German
bicycle. Klement returned his bicycle to the manufacturers, Seidel and Naumann, with a letter, in
Czech, asking them to carry out repairs, only to receive a reply, in German, stating: ―If you
would like an answer to your inquiry, you should try writing in a language we can understand‖.
A disgusted Klement, despite not having technical experience, decided to start a bicycle repair
shop, which he and Vaclav Laurin opened in 1895 in Mlada Boleslav. Before going into business
partnership with Klement, Laurin was established as a bicycle manufacturer in the nearby town
of turnover.
In 1898, after moving to their newly- built factory, the pair bought a Werner ―motorcyclist‖,
which was produced by French manufactur er Werner brothers. Laurin & Klement‘s first
motorcyclist, powered by an engine mounted on the handlebars driving the front wheels, proved
dangerous and unreliable-an early incident on its cost Laurin a front tooth. To design a safer
machine with its structure around the engine, the pair wrote to ignition specialist Robert Bosch
for advice on a different electromagnetic system. The pair‘s new slavia motorcycle made its
debut in 1899.
In1900, when the company had a workforce of 32, slavia exports begun, with 150 machines
shipped for London for the Hewston firm. Shortly afterwards, the press credited them as makers
of the first motorcycle, the first model, voiturette A, was a success and the company was
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 25/88
25 | P a g e
established both within Austria-Hungary and internationally. By 1905 the firm was
manufacturing automobiles.
After WW1 the Laurin-Klement company began producing trucks, but in 1924, after running
into problems and being hit by a fire, the company sought a partner, and was acquired by Skoda
Works, an arms manufacturer which had become a multi-sector concern and the biggest
industrial enterprise in Czechoslovakia. Later production was under the Skoda name. After a
decline during the economic depression, Skoda was again successful with models such as
popular in the late 1930s.
Skoda auto is a part of international Volkswagen group, one of the premium automobile
manufacturers In Europe. Skoda entered the Indian market in November16, 2001. The company
invested in a plant at shendra, outskirts of Aurangabad, the only manufacturing facility of the
company outside Europe. The brand Skoda Auto is known for its stylish looks, well built exterior
and its constant endeavour to introduce modern technologies.
Till date Skoda Auto introduced twelve luxury models in the Indian market including Skoda
Superb and Skoda Laura. In 2005 the company achieved more than 25% market in the luxury
1segment. In the same year It had set up a network of 41 dealership equipped with 35 facilities
spread across the country. The total sale was close to 27,000.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 26/88
26 | P a g e
COMPANY PROFILE
Business type Private
Industry Automobile
Established in 2002
Sales volume 500 cars/year (approx)
Employees 45
Revenue 2 crores (approx)
Head quarter Vadodara, Gujarat, India
Parent Skoda Auto
Key people Mr. Satish Bhungaliya (Owner/Director),
Mr. Emish Mali (General Manager)
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 27/88
27 | P a g e
VISION
The most respected Company in the eyes of our people for the care, concern, and the
pride in work that we create and provide.
VALUES
• Satisfy consumers & business associates by providing high quality products and excellent
services
• Development and Growth of people through training, job enrichment and empowerment
• Employees to show high level commitment, ethics and principals
WORK-CULTURE
Quality is an integral part of Torque Auto motive‘s well-defined and dynamic Human
Resource (HR) policy. The company follows a strong value system which is driven by result
orientation, adaptability to change, humility and respect for colleagues and peers. We believe
that investment in human capital is the key source of competitive advantage and sustained
growth.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 28/88
28 | P a g e
SKODA YETI
SKODA YETI
Logo
Parent company skoda auto
Category sedan, hatchback, suv
Sector Automobiles
tagline/slogan the right of way
Usp tough,off-roader characteristics and features,
comfortable
STP
Segment suv
target group families and off roader drivers
Positioning positioned as a tough car built for rough
terrains but at the same time comfortable for adrive
SWOT ANALYSIS
Strength 1. great driver visibility due to high driving
position
2. well suited for off roads due to great
handling capabilities
3. handy and convenient features to use
4. easy to drive in traffic and in city due to
increased driver visibility
5. also known as skoda sandi in some markets
6. škoda yeti has been awarded a 5-star safety
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 29/88
29 | P a g e
rating by the euro ncap
Weakness 1. skoda has not been penetrating into
emerging economies as some of the other
competitors
2. slightly expensive product but hasn‘t been
able to capture the premium market as per its
potential
Opportunity 1.collaborations with automobile entities to
penetrate deeper in the market through
distribution and servicing network
2. augmenting automobile market
3.attracting more middle income class
customers
Threats 1.rapid technological innovations implemented
in upcoming cars
2. intense competition from national car
manufacturers
3.intense competition in thesuv market
COMPETITION
Competitors 1.hyundai tucson
2.maruti grand vitara
3. tata aria
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 30/88
30 | P a g e
MILESTONES OF THE COMPANY
YEAR
2002 BBC — Best Entry Level Car for Skoda Octavia
2003 NFO — Voice of Customer Award
2004 2nd rank — J D Power India Sales Satisfaction Index Study
2005 CNBC TV-18 Auto car – Best Variant of The Year SKODA RS
Overdrive – Auto Tech Of The Year SKODA RS
J D Power – Initial Quality Study – Best Premium Car of the Year for SKODA
Octavia
J D Power – APEAL Study – Premium Midsize Car for SKODA Octavia
CNBC TV-18 Auto car – The Car of The Year for SKODA Superb
CNBC TV-18 Auto car – Best Design and Style of The Year for SKODA
Superb
CNBC TV-18 Auto car – Viewers Choice Car Of The Year for SKODA
Superb2006 2nd rank — J D Power India Sales Satisfaction Index Study
‗CNBC TV-18 Auto car — best variant of the year for Skoda Superb
NDTV Profit Car India — Executive car of the year for Skoda Laura
Overdrive — Auto Tech of the year for Skoda Laura
Total Customer Satisfaction (TCS) Study by TNS — Best Premium Midsize
Segment car for Skoda Octavia
2007 1st rank in J.D. Power Asia Pacific 2007 India Sales Satisfaction Index
3rd rank in Dealer Satisfaction Study by TNS Automotive for four-wheeler
manufacturers
Total Customer Satisfaction (TCS) Study by TNS — Best Premium Midsize
Segment car for Skoda Octavia
2008 1st rank in J.D. Power Asia Pacific 2008 India Sales Satisfaction Index
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 31/88
31 | P a g e
Total Customer Satisfaction (TCS) Study by TNS — Best Premium Midsize
Segment Car for Skoda Octavia
2009 Active Small Car of the Year
Active Small Car of the Year at the NDTV Profit Car & Bike Awards.
Car of the Year Award
Skoda's Super hatch Fabia wins the "Car of the Year" award at the CNBC
TV 18 Overdrive awards 09 held at Taj Lands End, on the 9th of January in
Mumbai.
Compact Car of the Year
The Super hatch Fabia, known for the practicality along with roominess itoffers, also bagged the award for Best Compact Car of the year.
2010 The Golden Steering Wheel Awards – 2010 by AutoBild India
• Best Variant of the Year – SKODA Laura
• Best Sedan of the Year – SKODA Superb
Overdrive - CNBC TV18 Awards – 2010
• Midsize Car of the Year – SKODA Laura
Bloomberg UTV-Auto car Awards – 2010
• Best Variant of the Year – SKODA Laura
NDTV Profit – Car India & Bike India Awards – 2010
• Entry Premium Car of the Year – SKODA Superb
BS Motoring Executive Car Of The Year – 2010 SKODA Superb
SKODA Superb - Car of the Year - BBC Top Gear Awards 2010
2011 SKODA Rapid
Vicky. in People's choice Car and Bike awards 2011 - Sedan of the year
Top Gear Awards 2011 - Family Car Of The Year
2011 ET Zigwheels Car of the Year - Premium Compact Sedan of the Year
SKODA Yeti
Bloomberg UTV Auto car Awards 2011 - 4x4 of the Year
Economic Times Zigwheels - SUV of the Year
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 32/88
32 | P a g e
Economics Times Zigwheels - Design of the Year
CNBC Overdrive - SUV/UV of the Year
BBC Top Gear - Car of the Year
Car India - MUV/Crossover of the Year
NDTV Car & Bike award - Compact SUV of the Year
NDTV Car & Bike award - Best Integrated Marketing Campaign
UTVi - Bloomberg Auto car - SUV of the year
CNBC TV18 Overdrive - SUV of the Year
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 33/88
33 | P a g e
SKODA LOGO
1926- 1933
This company has been founded in the year 1895. In Mladá Boleslav cars have been
manufactured under the brand Skoda and though the name brand has been completely changed in
form of novel product logo is visible continuity with previous stage and the logo of this company
has a novel which is of oval shape where the brand name is yet a dominant one in the center
bounded laurels.
1926 - 1990
The first logo of became so popular which is of which is of winged arrow and this particular one
has already been used earlier in 1926.Below is a clear view of logos of Skoda company with
clear description behind the design!
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 34/88
34 | P a g e
OVERVEIW OF COMPETITORS
The following are the major players of automobile industry in the world
1) FERRARI:
Ferrari is a sport car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in
1929 as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before
moving into production of steel- legal vehicles
in 1947 as Ferrari. Throughout its history, the company has been noted continued participation
in racing, especially in formula one, where it has enjoyed great success.
2) FORD:
The Ford Motor Company is an American corporation based in Dearborn, Michigan, a suburb of
Detroit. The automaker was founded by Henry Ford and incorporated on June 16,1903.ford
introduced methods for large- scale manufacturing of cars and large-scale management of an
industrial workforce using elaborately engineered manufacturing sequences typified by moving
assembly lines.
3) B.M.W.:
Bavarian motor Works (BMW) is a German automobile, motorcycle and engine manufacturing
company founded in 1916. It also owns and produces the MINI brand, and is the parent company
of Rolls-Royce Motorcars. BMW produces motorcycles under BMW Motorrad and Husqvarna
brands. BMW is known for its performance and luxury vehicles.
4) MERCEDES:
Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches and trucks. It is
currently a division of the parent company, Dailmer AG (formerly DailmerChrysler AG), after
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 35/88
35 | P a g e
previously being owned by Dailmer-Benz. Mercedes-Benz has its origins in Karl Benz‘s creation
of the first petrol-powered car, the Benz patent motor wagen, patented in January 1886. The
Mercedes automobiles were first marketed in 1901by Dailmer Motoren Geselleschaft. The first
Mercedes-Benz brand name vehicles were produced in 1926.
5) CHEVROLET:
Chevrolet is a brand of automobile produced by General motors‘ company (GM). Founded by
Louis Chevrolet and ousted GM founder William C. Durant on November 8, 1911, Chevrolet
was acquired by General Motors in 1917.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 36/88
36 | P a g e
RESEARCH METHODOLOGIES
MARKETING RESEARCH
Definition of marketing research research as approved as by the board of directors of the
association of American marketing association is:
―Marketing research is the function which links the customer and public to the
marketer through information – information used to identity and define marketing
opportunities and problems generate define and understanding of marketing as process‖. Simply, marketing research isthe systematic design collection analysis and reporting of data
finding relevant to a specific marketing situation facing the company. Carefully planning
through all stages of the research is a necessity .Objectivity in research is all-important. The
heart of scientific method is the objective gathering of the information. The function as
marketing research with in the company as to provide the information and analytical
necessary for effective.
➢ Planning of the future marketing activity.
➢ Control of the marketing operation in the present.
➢ Evaluation of marketing results. A research may undertake any of the three types of
research investigation depending upon the problem. This type of research included:
1. Basic research
2. Applied research
3. Designated Fact Gathering
BASIC RESEARCH:
It is also known as the pure fundamental research, which refers to those studies, sole purpose
of which is the discovery of new information. It is conducted to extend the horizons on
given area of knowledge with no immediate application to existing problems.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 37/88
37 | P a g e
APPLIED RESEARCH
It is attempt to apply the various marketing technique, which have been developed as
research, first and later on they become applied research techniques. It is on attempt to apply
the basic principles and existing knowledge for the purpose of solving operational problems.
DESIGNATED FACT GATHERING
It refers to a research where the investigation attempts to gather some pre-determined data.
STEPS IN MARKETING RESEARCH
Marketing research process can be out through following steps. Define the problems and
research objectives Develops the research plan Collect the information Analysis and
interpretation Present the finding.
RESEARCH METHOD
It must be classified on the basis of the major purpose of the investigation. In this problem
description studies have been undertaken, as the objective of the project is to conduct the
market shares study to determine the share of market received by the company to the
competitor.
DATA COLLECTION
The information needed to further proceed had been collected through primary and
secondary data.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 38/88
38 | P a g e
PRIMARY DATA
It consists of information collected for the specific purpose, survey research was used and he
all the details of Ford and their competitors were contacted. Survey research is the
approached gathering description and information.
CONTACTED METHOD
The information was solicited by administering structured questionnaire to the customer and
dealers, thus getting to know directly from the dealers their sales before and after sales
service.
SECONDARY DATA COLLECTION
The secondary data consists of information that already existing somewhere having been
collected for another purpose. Any researcher begins the research work by first going
through secondary data. Secondary data includes the information available with company. It
may be the findings of research previously done in the field. Secondary data can also be
collected from the magazines, news papers, internet other service conducted by researchers.
METHODS OF DATA COLLECTION
The basic method adopted in conducting the study is a structured questionnaire
.Questionnaire is administered on the sample respondents. However there are certain cases
where personal interactive method is followed with customers to find the satisfaction level.
Descriptive study
A Sampling technique Convenience sampling & judgment sampling
B Sampling unit The consumers and dealer of car in surat city
C Sampling size Consumer 150
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 39/88
39 | P a g e
OBJECTIVES
The study will focus to find out reason for low acceptance of yeti.
Evaluate the parameters which influence the intention to purchase SUV vehicle.
The Research so carried out would help me in understanding the consumer‘s attitude
towards the product and also help me to find out the problem faced by them.
The study would recommend all the suitable strategies to organization which will
enhance the consumer preference for yeti.
This study will also try to find out the areas which need to be improved so as to gain a
competitive advantage.
To understand the triggers used to choose competitors Product as compared to yeti.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 40/88
40 | P a g e
SCOPE AND LIMITATIONS
SCOPE
Examines and identifies key information and issues about 'SKODA AUTO PVT LTD' for
business intelligence requirements
Study and presents the company's strengths, weaknesses, opportunities (growth potential)
and threats (competition). Strategic and operational business info is accurately stated.
The profile also covers info on business processes, company history, major products and
services, prospects, key challengers, locations and subsidiaries.
LIMITATIONS
Change in certain trends like rise in the price of cars may affect the data.
The research is purely driven by the responses of the Customers.
The research was carried out in only surat Area.
A large number of customers who have bought vehicles in 2012 were included in this
research which may also affect the result.
The sample size of competitors‘ product is not very high due to non-availability of data.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 41/88
41 | P a g e
SUV ANALYSIS
The growing consumerism in Indian market has made the customer to have various options
which has improved the customer bargaining power too. Indian companies like Mahindra &
Mahindra, Tata have head on head competition among Mahindra Scorpio & Tata Safari.
Surrounded by the foreign players who occupied Indian automobile industry only Toyota had a
main impact in the SUV division with hot selling models like yeti, Innova & Fortuner.
Additional players like Hyundai Motors India limited, Maruti Suzuki, Ford, Mitsubishi have a a
smaller amount of market share. Mahindra leads the SUVs division ever since the takeoff of itsScorpio from Mahindra which has its own victory stories. Mahindra XUV 500 which is
established indigenously by M&M was a hit because of the confidence that the customers had in
Scorpio. The lists of SUVs in Indian market are listed below.
Company Products
TATA Safari, Aria
Maruti Ertiga
Toyota Innova, Fortuner
Skoda Yeti 4*2
Renault Duster, Koleos
Force Force One
Mitsubishi Pajero, Outlander
Nissan X trail
Mahindra Scorpio, Bolero, XUV 500, Thar
Ford Endeavour, Eco Sport
Audi Audi Q3
Chevrolet Captiva
Volkswagen Touareg
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 42/88
42 | P a g e
BMW BMW X3
Land Rover Range Rover Evoque
The year 2012-13 will be the year of SUVs for India; all international auto players have their eye
on emerging Indian market. The regular age of a consumer buying an SUV has reduced from 39
to 31 years, which reflects the market prospective of Indian SUV market is prosperous due to
increase in buying power of young generations. This year‘s Auto expo in New Delhi there were
more than 1500 contestants from 23 nations. New contestants in the Indian SUV are Mercedes
ML class, Renault Koleos, SsangYong Korando, Mahindra W201, Force one Safari Merlin,
Touareg, Audi Q3etc.
The growing craze for SUV market has hindered the growth of Indian small car segment. While
there are countless SUVs arriving Indian market; M&M after occupying the Indian markets has
started entering US markets; it exported more than 11000 SUVs and targeting to be the biggest
exporter in this division. The much awaited XUV 500 is a hit with 25,000 bookings received
since its launch. SIAM report says that India has the largest proportion of the residents who are
below 35 years in that 70% are probable buyers; which can be only a myth in any other part of
the world.
The factors favoring the growth of SUV segment:
1. Developing Indian economy
2. Growth in disposable income
3. Easier financing choices
4. Transforming consumer life style
5. Sporting appeal
6. Great performance engine
7. Low Price of diesel compared to petrol
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 43/88
43 | P a g e
8. Desire of Middle class societies
9. Local manufacturing decreases price
10. Representation of status
11. Growing brand conscious among individuals
On the contrary side the increase of SUVs will cause a significant destruction to the environment
with their fuel consumption and carbon discharge. The diesel price which is given in a backed
price is consumed in a greater quantity by SUVs which is possessed by high end of the society.
The rise of SUVs market will again increase diesel consumption causing fuel price hike. Hence
SUV manufacturers face an unlimited contest ahead in manufacturing ECO friendly vehicle
improved performance without compromising the ―mileage‖; which is the utmost key deciding
issue in Indian context.
Sports-utility vehicle (SUV) division which recorded the fastest progress rate in the last year.
SUVs, which cost closely three times (or even more) what an entry-level car does, grew a huge
32% in the year, powered by higher demand for both India-made and imported models.
The year also saw that, while the market faced a slew of negatives like high interest rates and
increase in petrol prices, the demand for costlier cars was not reduced. Sedans (market share
19%) saw demand increase by 15%, and this was powered by superior models like the Hyundai
Verna, VW Vento and Chevrolet Cruze.
The rapidly-improving road structure and the gradual love of Indian people to travel together
between cities are fuelling the demand. Also, the existence of diesel engines plays an important
part here. Another reason behind the success of the SUVs is that the quantity of offerings in this
segment is rising rapidly.
Certain models like Toyota Fortuner & Mahindra‘s latest launch XUV500 have the distinction of
a long waiting list for them. Other companies that are set to unveil new SUVs include Ford,
Renault, and Audi. The SUV division has witnessed a fantastic progress in India over the last
few years and holds the maximum potential in terms of demand.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 44/88
44 | P a g e
At present-day SUV accounts for 15% of total passenger car market which are expected to
develop up at 25% in next three years. AS Finance Minister also declared a hike in import duty
to 75 per cent from 60 per cent for assembled SUVs and MUVs costing more than $40,000. The
declared increase in excise tax for cars made in India to 27 per cent would only have a minor
impact on car costs.
Shares in Mahindra & Mahindra, India's prominent SUV maker, whose entire model range runs
on diesel, increased as much as 6.1 per cent. Diesel car sales have improved to account for about
40 % of new buying in India, compared to less than 20 per cent a few years ago. The diesel
model of Maruti Suzuki's common new Swift hatchback has a waiting list longer than six
months. A hurry to buy vehicles before the budget increased car sales in February to their highest
level.
Cutting the subsidy, which makes the fuel about 50 per cent reasonable than petrol, is a political
move due to diesel's extensive use in India's huge farming business.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 45/88
45 | P a g e
REASON FOR LOW ACCEPTANCE OF SKODA YETI
Reason for low
Acceptance of yeti
Low Brand
(Aria)
Awareness
Less satisfied
Current
owners Low Brand
Recall
Low
Motivation
to sales team
Unclear
Positioning
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 46/88
46 | P a g e
SKODA YETI PROMOTION
Following are the promotional strategies of Skoda Yeti
ADVERTISING
Advertising is promoting a product via/through the media. Advertising must reach the target
audience. It has to emphasise the characteristics of the product that will appeal to the
potential consumer. In advertisement that can refer to the unique selling proposition of the
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 47/88
47 | P a g e
product and if that is not available company can promote by brand imaging. Advertising can
be done by different kind of media are as follow:
- Newspapers
- Magazines
- Direct mail letters
- Radio
- Television
- Billboards
- Posters
- Internet
The advertise needs to have a specific target group and should get the attention of the
potential customers. In the end the company want with advertising is the customers attention
and create the desire of the customer to buy the product instead they buy the product of the
competitor.
Yeti get promoted by Skoda by different kind of advertising because it has different target
groups. It gets promoted on the website of Skoda. The website includes all the features of
the car. It also gets promoted in the business line, they put it in a magazine which especially
business people read. The basic line promotion of Skoda is to get it promotes on television
because everybody is watching television and not only business man. So with television
their target group is wider.
In one of the television commercial of Skoda we can see some of the unique selling points.
Like speed, design, where we can buy it. In the commercial we also see a beautiful
landscape with this they also try to link that the car is better for the environment than other
cars
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 48/88
48 | P a g e
CRM - Customer Relationship Management
CRM is the abbreviation for customer relationship management. CRM entails all aspects of
interaction that a company has with its customer, whether it is sales or service-related. CRM is
often thought of as a business strategy that enables businesses to:
Understand the customer
Retain customers through better customer experience
Attract new customer
Win new clients and contracts Increase profitably
Decrease customer management costs
While the phrase customer relationship management is most commonly used to describe a
business-customer relationship, however CRM systems are used in the same way to manage
business contacts, clients, contract wins and sales leads.
CRM solutions provide you with the customer business data to help you provide services or
products that your customers want, provide better customer service, cross-sell and up sell more
effectively, close deals, retain current customers and understand who the customer is.
Technology and the Web has changed the way companies approach CRM strategies because
advances in technology have also changed consumer buying behavior and offers new ways for
companies to communicate with customers and collect data about them. With each new advance
in technology -- especially the proliferation of self-service channels like the Web and
smartphones -- customer relationships is being managed electronically.
Many aspects of CRM relies heavily on technology; however the strategies and processes of a
good CRM system will collect, manage and link information about the customer with the goal of
letting you market and sell services effectively.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 49/88
49 | P a g e
LITERATURE REVIEW
Consumer Behavior and IMC
To get a better knowledge about product and dealership services I read many of the published
books/leaflets of Tata Motors, apart from that I even went through the training material provided
by Tata Motors to Dealers sales advisors – Winning every prospect.
An extensive literature study about product was carried out so as to know all the features of car
which will helped me to convince customer while interacting with them.
The existence of the customer is integral to the existence of the retailer/dealership. The ability to
understand the customers is the key of developing a successful retail strategy. To be able to
satisfy the customers, it is necessary to understand him, his needs and how he responds to the
various marketing efforts which have been undertaken by the organization. An integral part of
understanding the customers for the product or service i.e., the target segment, and the
demographics of this segment, their needs and buying behavior. The decision making process by
the customer is extensively examined. The consumers can be studied in a variety of ways
including through observations, electronic surveillance, interviews and surveys, experimentation
etc.
The most important application of consumer behavior study is the development of the marketing
strategy. The firms and organizations improve their marketing strategies by understanding issues
such as how-
The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 50/88
50 | P a g e
The behavior of consumers while shopping or making other marketing decisions;
Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
Hence, Integrated marketing communication channels depends completely on the behavior of the
consumer and the effective promotions are advertising campaigns are formulated based on a
careful study on these.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 51/88
51 | P a g e
PROJECT ANALYSIS
A survey was carried out for a sample of 150 consumers (75 current & 75 potential) to
understand their expectation from the vehicle and even for getting feedback about yeti and
dealership. The survey gave the following results:-
1) What do you think is more important to you before buying product.
Loyal towards Percentage of respondents
Brand/Company 67%
Dealers/ Service provider 33%
67%
33%
Loyalty
Company/Brand
Dealer/Service provider
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 52/88
52 | P a g e
ANALYSIS:
As we can see that a large no. of people around 67% of our sample agreed to consider Brand as
important factor while purchasing any product. Still almost one third of Customers prefers to buy
it from a specific dealer rather than Brand.
torque Automotive being the oldest dealer of SKODA has gained a huge loyalty base because of
its presence in many residential Areas.
SUGGESTION:
Though it‘s not a big issue but we should try to make people more brand loyal than dealer loyal
so that in case the dealer chose to go with competitors product we should not lose our customer
base.
2) Which factors do you consider while buying a car.
Purchase Influencing Factors % of respondents
Price 19.50%
Mileage 14.5%
ROI 9.50%
Resale 13.50%
Dealer network 14%
Service reach 15.50%
Others 13.50%
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 53/88
53 | P a g e
ANALYSIS:
As we all know India is a price sensitive country, pricing of the product affects the buying
decision of a customer, a large no. of customers agree that the presence of dealer network and
resale value of product is also one of the driving factors which affect the buying decision of Cars.
SUGGESTION:
Company can adopt a better value chain model so as to reduce the cost of product and price them
which attracts a customer and also profitable for seller. SKODA-AUTO with a network of more
than 800 dealer across India has a good presence; still company has a large scope in Tier 3 and
Tier 4 cities.
19.50%
15%
9.50%
13.50% 14%15.50%
13.50%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Factors Influencing Purchase
Factors Influencing Purchase
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 54/88
54 | P a g e
3) Please tick the appropriate reasons for your decision of purchasing SUV vehicle:
Reasons for purchasing SUV % of respondents
Safety 22.6%
Off-roading 16.7%
Comfortable/Spacious 21%
Powerful 23.4%
Style statement 9.2%
Others 7.1%
ANALYSIS:
Reasons for purchasing SUV have increased now a days because customer want a powerful,
comfortable/spacious car as from the above graph we can see that.
22.60%
16.70%
21%
23.40%
9.20%7.10%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Reasons for purchasing SUV
Reasons for perchasing SUV
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 55/88
55 | P a g e
4) How did you come to know about skoda:
Awareness % of respondents
Reference 21%
Dealer 9.5%
Newspaper Ad 16%
Leaflets/Banners 17%
Demo activity 8%
Online 19.5%
Others 9%
ANALYSIS:
A large number of potential customers has not even heard of YETI, a large number of Customers
came to know about Aria from various websites and references which is not a good things.
0%
5%
10%
15%
20%
25%21%
9.50%
16.00%17%
8.00%
19.50%
9%
Awareness about YETI
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 56/88
56 | P a g e
SUGGESTION:
SKODA should promote yeti as the segment to which skoda is targeting for yeti are upper
middle class or higher class people who have a large no. of options available in the market. If
people themselves are searching for vehicle and current customers are referring yeti to potential
customers than obviously there is a market pull for the product but due to lack of awareness of
product it‘s not being converted in final sale.
5) Feedback for yeti
Rating for Looks of yeti % of respondents
1 13.5%
2 30.5%
3 16%
4 13%
5 27%
13.50%
30.50%
16%
13%
27%
Looks
1
2
3
4
5
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 57/88
57 | P a g e
ANALYSIS:
Looks is considered to be one of the most important things while buying any SUV, After
interacting with so many customers and even sales advisors, I realized that yeti lacks in giving a
sporty and attractive look. Though many of the customers prefer the look of yeti, they considered
it as a brand identity of skoda vehicle.
SUGGESTION:
A vehicle is designed after taking review from many people, and so many of qualified engineers
and designers design in keeping in mind various things. But I would suggest that a small
modification in its front look can be done so as to make it look different from a regular skoda
Car.
Rating for Comfort of yeti % of respondents
1 3.5%
2 2.5%
3 9.5%4 23.5%
5 61%
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 58/88
58 | P a g e
ANALYSIS:
When a person is investing a huge amount to buy SUV he definitely expects it to be a
comfortable vehicle, yeti customers are not just happy but delighted with the comfort of yeti.
More than 80 percent people consider yeti as one of the best vehicle when it comes to comfort.
SUGGESTION:
Almost all the current and potential customers are happy with the comfort of yeti; skoda can
promote its car keeping in mind this point which can prove to be biggest differentiator from other vehicles.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1 2 3 4 5
3.50% 2.50%
9.50%
23.50%
61%
Comfort
Comfort
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 59/88
59 | P a g e
Rating for Power of yeti % of respondents
1 9.5%
2 19.5%
3 25.5%
4 21.5%
5 24%
ANALYSIS:
Yeti with its engine has amazed so many people but a large no. of people think that the power
output of yeti can further be increased.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
1 2 3 4 5
9.50%
19.50%
25.50%21.50%
24%
Power
Power
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 60/88
60 | P a g e
Ease of maintenance of YETI % of respondents
1 12%
2 37%
3 23%
4 16%
5 12%
ANALYSIS:
Only owners feedback was taken for this question, we can see that a large no. of customer thinks
that it‘s not easy to maintain YETI, while interacting with them I realized it‘s not the vehicle but
the dealership which is causing them problem. As it takes too long for them to get back their
vehicle, no pickup drop facility, Parts not available with dealer, low level of product knowledge
to servicing staffs etc.
12%
37%
23%
16%
12%
Ease of Maintainance
1
2
3
4
5
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 61/88
61 | P a g e
SUGGESTION:
A dealer earns money once while selling the cars but through servicing a major chunk of money
comes, so all dealers should be advised to give preferences to all yeti when it comes for
servicing, they should keep the an appropriate stock of parts with them, maximum one day of
servicing time should be taken for Yeti vehicles, proper reminder of Servicing should be sent to
customers from servicing managers/staffs.
YETI FUEL EFFIENCY % OF RESPONDENTS
1 23%
2 16%
3 39%
4 6%
5 16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
23%
16%
39%
6%
16%
Fuel Efficiency
Fuel Efficiency
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 62/88
62 | P a g e
ANALYSIS:
Fuel efficiency differs from person to person due to driving habit, road and traffic conditions,
fuel quality, loading pattern and maintenance practices so many of the customers are getting
average of 12 in city and 13 on highway while some of them are getting 10 in city and 11 in
highway.
SUGGESTION:
Customers can be given guidance so as to give them a proper knowledge about the driving habit
which will help them in getting high average.
COST % of respondents
1 22%
2 18.5%
3 22%
4 13%
5 24.5%
0%
5%
10%
15%
20%
25%
1 2 3 4 5
22%
18.50%
22%
13%
24.50%
COST
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 63/88
63 | P a g e
ANALYSIS:
A customer should always feel that he has made a right decision by buying the car, as the price
of Yeti has been rising consistently due to increase in tax and other things many people who
bought Yeti previously are very happy, but the current buyer and potential customer thinks that
the vehicle is overpriced and they expect it to be lowered down.
SUGGESTION:
Many people are not aware of product because of which they feel it doesn‘t worth the price its
charging, we should give them proper information regarding project.
ASTHETIC FEATURE % OF RESPONDENTS
1 3%
2 6.5%
3 11%
4 30.5%
5 49%
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 64/88
64 | P a g e
ANALYSIS:
Yeti has done a tremendous job in adding features to yeti, the fit and finish of Yeti is
tremendous, as we can see that more than 75% of people are very happy with the cosmetic
features offered by yeti.
SUGGESTION:
Though the customers are very happy with the features given in Yeti but many of them are not
happy with the quality of plastic used as some of them are facing problem with low quality of
plastic, this can be improved, some of them even raised question on the excess no. of roof utility
box provided which was not necessary in the vehicle.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2 3 4 5
3%6.50%
11%
30.50%
49%
Asthetic features
Cosmetic features
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 65/88
65 | P a g e
LUGGAGE SPACE % OF RESPONDENTS
1 6.5%
2 6.5%
3 29%
4 18.5%
5 39.5%
ANALYSIS:
Yeti has been provided with ample space for luggage so almost every customer was happy with
that though some owners who are using it as a cab suggested that they could have given a
company fitted roof racks/ cargo carrier.
SUGGESTION:
Yeti provides enough space for luggage, though it can offer roof racks to customers while buying
car at some discounted price.
6.50%
6.50%
29%
18.50%
39.50%
Luggage Space
1
2
3
4
5
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 66/88
66 | P a g e
SAFETY FEATURE % OF RESPONDENTS
1 8%
2 13.5%
3 23.5%
4 16%
5 39%
ANALYSIS:
Yeti is equipped with so many of the safety features For other variants mostly all the customers
were satisfied with the safety features offered. This will be good for customer from safety pointof view.
8%
13.50%
23.50%
16%
39%
0% 10% 20% 30% 40% 50%
1
2
3
4
5
Safety Features
Safety Features
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 67/88
67 | P a g e
6) Feature importance:
ABS/EBD % OF RESPONDENTS
1 8%
2 6.5%
3 22.5%
4 27%
5 37%
ANALYSIS:
Majority of people thinks that ABS/EBD is one of the most important features of SUV and Yeti.
As is helps in controlling the vehicle at the time of emergency while driving at a high speed.
ABS/EBD0%
10%
20%
30%
40%
1 2 3 4 5
8%6.50%
22.50%
27%
37%
ABS/EBD
ABS/EBD
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 68/88
68 | P a g e
Now days almost all the vehicles are installing ABS in their vehicle due to demand from
customers side.
MORE THAN 2 AIRBAGS % OF RESPONDENTS
1 24%
2 14.5%
3 19.5%
4 13.5%
5 28.5%
ANALYSIS:
Airbags are considered to be one of the important passive safety features of any car; many
respondents think that two Airbags are more than enough for any vehicle while a large chunk of
0%
5%
10%
15%
20%
25%
30%
1 2 3 4 5
24%
14.50%
19.50%
13.50%
28.50%
More than 2 AIRBAGS
> 2 AIRBAGS
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 69/88
69 | P a g e
customers are in favor of more than 2 airbags in vehicle so as if there is any side impact
passengers sitting at back row also should not have any injury.
SUGGESTION:
An option to customers can be given who want to add additional airbags in car at the time of
booking itself by paying additional cost.
CRUISE CONTROL % OF RESPONDENTS
1 33.5%
2 26.5%
3 13%
4 15.5%
5 11.5%
Cruise control
0.00%
10.00%
20.00%
30.00%
40.00%
1 23
4
5
33.50%
26.50%
13% 15.50%
11.50%
Cruise control
Cruise control
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 70/88
70 | P a g e
ANALYSIS:
Cruise control helps a driver to drive vehicle at a constant speed without giving acceleration to
vehicle, it is a growing trend in India but due to non-availability of good roads and heavy traffics
this feature is also not of a much use.
SUGGESTION:
Due to low usage on Indian roads Cruise controls are not very much in demand, but we should
try to create awareness about it, as it‘s very useful on highways, it helps to differentiate Yeti
from other vehicles.
GLOVEBOX CHILLER % OF RESPONDENTS
1 7%
2 13%
3 33%
4 22.5%
5 24.5%
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 71/88
71 | P a g e
ANALYSIS:
Chiller Box is considered to be a must for all high end class cars, as Yeti is meant for long
journey and family journey purpose; it helps in keeping some drinks and chocolate for children.
Even customers who are using Yeti for taxi purpose thinks it‘s an important feature and it makes
customer more comfortable while going for long journeys.
FOG LAMPS % OF RESPONDENTS
1 11.5%
2 9.5%
3 19%
4 22%
5 38%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
7%
13%
33%
22.50%24.50%
Chiller Box
Chiller Box
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 72/88
72 | P a g e
ANALYSIS:
The people consider fog lamps to be an important feature, as a large number of customer visits
hill stations for lamps help them in clear visibility.
SUGGESTION:
Fog Lamps is largely used feature of any vehicle, we should try to promote it as it helps in clear
visibility.
ALL WHEEL DRIVE % OF RESPONDENTS
1 21.5%
2 8.5%
3 33.5%
4 19.5%
5 17%
11.50%9.50%
19%22%
38%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1 2 3 4 5
Fog lamps
Fog lamps
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 73/88
73 | P a g e
ANALYSIS:
SKODA-AUTO has introduced 2 wheel drive version of Yeti. Then Yeti was launched in an
All-wheel drive version but not so many people are fond of all wheel drive in India
SUGGESTION:
Many people are still thinks that AWD is not necessary for them and it‘s a less used feature but
in Indian roads where roads are uneven and at many places where there are no roads, it is a very
useful feature, so people should be given proper knowledge about this feature.
ASTHETIC FEATURE % OF RESPONDENTS
1 15.5%
2 19.5%
3 27%
4 13.5%
5 24.5%
21.50%
8.50%
33.50%
19.50%
17%
AWD
1
2
3
4
5
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 74/88
74 | P a g e
ANALYSIS:
People consider Reverse sensors and camera as auxiliary feature, for some of them it‘s very
important as it helps them in parking bigger vehicle.
SUGGESTION:
As Yeti is a big vehicle reverse parking camera/sensors help in parking vehicles, so people
should be informed about this feature and we should tell them about the advantage of this
feature.
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
1
2
3
4
5
15.50%
19.50%
27%
13.50%
24.50%
Reverse parking sensor/camera
Reverse parking sensor/camera
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 75/88
75 | P a g e
TWIN EXHAUST % OF RESPONDENTS
1 8%
2 7%
3 16.5%
4 29%
5 39.5%
ANALYSIS:
Twin Exhaust helps to reduce engine strain and helps engine to perform better, it is also
considered as an accessory by customer to enhance the looks of vehicle.
SUGGESTION:
Yeti has 1900 cc engine and dual exhaust helps the vehicle to give a better performance, so dual
exhaust is a must for Aria irrespective of variants.
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
8% 7%
16.50%
29%
39.50%
Twin Exhaust
Twin Exhaust
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 76/88
76 | P a g e
7) Relative Brand Rating: please rank the vehicles as per your preference (1 being the best)
RELATIVE BRAND RATING % OF RESPONDENTS
YETI 17%
CAPTIVA 23%
ARIA 12%
OUTLANDER 26.5%
XUV500 21.5%
ANALYSIS:
Captiva and Outlander are being considered as the top sought brand by customers while Xuv is
on third rank followed by Yeti, Aria is not being considered as a Family car as many people
17%
23%
12%
26.50%
21.50%
0%
5%
10%
15%
20%
25%
30%
Yeti Captiva Aria Outlander Xuv 500
Rated as No. 1
Rated as No. 1
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 77/88
77 | P a g e
consider it as a tourist vehicle. Yeti is being ranked on an average position where many people
think that this is one of the best product offering from SKODA-AUTO.
8) How will you rate the service offered at SKODA-AUTO PVT LTD dealerships: (1 being
lowest and 5 highest)
DEALERSHIP RATING % OF RESPONDENTS
1 48.5%
2 27%
3 9%
4 9.5%
5 6%
48.50%
27%
9% 9.50%6%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
1 2 3 4 5
Dealership rating
Dealership rating
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 78/88
78 | P a g e
ANALYSIS:
A large number of customers are not happy with the service provided by dealership,
before/during and even after the sale is done. Many of customers are facing various issues with
vehicle due to negligence of dealers.
SUGGESTION:
Yeti customers are totally a different segment, they should be given preference in servicing of
vehicle, An Yeti servicing should not take more than a day, dealership service centers should
keep a track on the stock of parts of Yeti as many of customers keep on waiting for parts for
more than 2-3 months.
9) Are you satisfied with the Information/Demo/Test drive given to you:
INFORMATION FROM SALES ADVISOR % OF RESPONDENTS
YES 57% NO 43%
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 79/88
79 | P a g e
ANALYSIS:
We can see that around 57% of people are not satisfied with the demo/ test drive given to them,
the basic reason which I have identified is lack of maintenance of Test drive vehicle.
57%
43%
Information
Yes
No
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 80/88
80 | P a g e
FINDINGS
Torque motors do communication from their customers by the way of telephone.
Secondly they stand there employees to the place of the customer to take their
feedback
They send their employees for the insurance paperwork, to take their car from
their place to the service station.
The main tool of the communication are face to face, telephone, and through
message remainders.
SKODA at the time of launching Yeti has taken help of various promotional tools
and tried to make an impact on customers mind, but after some time their focus
started changing.
Due to low promotion Yeti has a very less awareness in Market; moreover
SKODA has been sceptical about the positioning of Yeti.
SKODA-AUTO is an extremely well established brand.
Further initiatives and efforts could see SKODA-AUTO at the very top for the
entire range of products dealing with high class comfortable vehicle.
Current owners are facing a lot of problem relating to service of vehicle and even
with the low availability of parts.
One of the main problem is that customer advisors directly focus on price rather
than showing them vehicle and its features.
Yeti has a huge potential in the market as almost all the current owners are well
satisfied with vehicle and its performance.
The biggest issue with yeti is its look which is not being accepted by customers.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 81/88
81 | P a g e
RECOMENDATIONS
PRODUCT RELATED:
Yeti is being designed by Top designers of SKODA-AUTO keeping in mind the expectation and
also the financial constraints, no doubt it‘s a master piece created by them. But as per my
personnel opinion after interacting with costumers, I would like to suggest some important
concerns of customer
Positioning is one of the very critical aspects of any product, just by labeling the
product as a crossover does not make it a crossover. The brand should producesufficient evidence that it belongs to a new breed.
Skoda should promote yeti as a large number of owners are happy with the
product but due to low awareness the sale of yeti is low.
Skoda should also take part in vehicle exhibition of premium cars which is
organized by various organizations.
All the promotional offers/ discounts of month should be informed to dealers as
soon as possible because a large number of inquiries which is being made on first
week of month are lost to competitor
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 82/88
82 | P a g e
DEALERSHIPS/ SERVICE RELATED
Sales Advisors should be motivated so as to sell Yeti.
Dealerships should give preference to yeti owners in service, not more than 24
hours should be taken to service the vehicle.
Dealers should also maintain a proper stock of parts of Yeti, if they don‘t have
any part available they should arrange for it.
Sales advisors should focus on customers rather than filling up green forms.
Test drive vehicles should be maintained carefully as almost every dealerships
vehicle has some problem.
Sales Advisors should use the Video player which is provided to them while
dealing with Yeti Customers.
Various kinds of Rally/ Events related to Yeti could be organized in a particular
city.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 83/88
83 | P a g e
LEARNING FROM SIP
Dealing with different types of customers.
Various procedures to be followed while closing any deal.
Consumer insights about SUVs
Various ways of contacting customers and increasing inquiries for vehicle.
Essential things which should be kept in mind while organizing events.
Patience.
Various stages of sales and action required at that stage.
How to deal with dealerships/ service provider.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 84/88
84 | P a g e
BIBLIOGRAPHY
WEBSITES:
www.data.worldbank.org
www.skoda-auto.co.in
www.siamindia.com
www.carwale.com
www.managementpunditz.com http://planningcommission.nic.in/data/datatable/index.php?data=datatab
www.newskodayeti.co.in
Magazines/ Books/Newspaper:
Times of India
Business world‘s, ‗The Marketing White book‘; 2011-2012
Marketing management
Philip Kotler, 13th Edition, Pearson Education
Marketing management, N. D. Gami.
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 85/88
85 | P a g e
ANNEXURE
QUESTIONNAIRES:
Understanding Consumer Insights of skoda yeti
1. What do u think is more important to you before buying product
o Company/Brand
o Dealer/Service provider
2. Which factors do u consider while buying a car
o Price
o Mileage
o ROI
o Resale
o Dealer network
o Service reach
o Other specify………….
3. Please tick the appropriate reasons for your decision of purchasing SUV vehicle:
(You can select multiple options)
o Safety
o Off-roading
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 86/88
86 | P a g e
o Comfortable/Spacious
o Powerful
o Style statement
o Other please specify ………………………….
4. How did you come to know about YETI:
Reference
Dealer
Newspaper Ad
Leaflets/Banners Demo activity
Online
Others please specify __________________
5. Feedback for YETI: (1 being Lowest and 5 Highest)
Sr.No. Parameters 1 2 3 4 5
1. Looks
2. Comfort
3. Power
4. Ease of Maintenance
5. Fuel efficiency
6. Cost
7. Cosmetic Features
8. Luggage space
9. Safety features
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 87/88
87 | P a g e
6. Features Importance :
Sr.
No.
Features Not
Important
Least
Important
Neutral Highly
Important
Utmost
Important
1. ABS/EBD
2. More than 2
Airbags
3. Cruise Control
4. Chiller box5. Fog lamps
6. Reverse parking
sensor/camera
7. Twin exhaust
8. AWD
7. Relative Brand Rating: please rank the vehicles as per your preference (1 being the best)
---------------------------------------------------------
YETI
CAPTIVA
ARIA
OUTLANDER
XUV500
8. How will you rate the service offered at SKODA-AUTO PVT LTD dealerships:
(1 being lowest and 5 highest)
7/30/2019 Janki Main Project (Skoda)
http://slidepdf.com/reader/full/janki-main-project-skoda 88/88
o 1
o 2
o 3
o 4
o 5
9. Are you satisfied with the Information/Demo/Test drive given to you:
o Yes
o No
10. Any other concerns / Valuable suggestions:
11. Personal details:
Name: …………………………………………..
Profession: ……………………………………..
Contact No. : …………………………………….
Model purchased/Interested: ……………………………………..
Dealership Name: