Professional Documents
Culture Documents
RESEARCH REPORT
ON
THE STUDY OF CONSUMER PREFERENCE & CONSUMER
PERCEPTION TOWARDS VARIOUS BRANDS OF CARS”
Submitted To
Kurukshetra University, Kurukshetra
In the partial fulfillment for the Requirement for the degree in
MASTER OF BUSINESS ADMINISTRATION
SESSION (2008-2010)
SUBMITTED TO SUBMITTED BY
Life is full of interaction. In our daily life we get ahead by giving hope to each other.
When a person is doing some important work whether as a guide, helper, supporter i.e., a true
friend is needed. And one feels obliged to them.
There is always a sense of gratitude which one feels towards his/her Guru or Mentor who has
helped him/her at one point of time or the other.
I am thankful to Mr. RINKU AGGARWAL who was always there to give my spirits a
boost and whose guidance it would not have been possible for me to complete my project
report successfully.
I shall be falling in my duties if I do not express my gratitude to my friends and other persons
for their useful advice at various stages.
Last but not the least; I would like to thank the Almighty God for his blessings showered on
me during the project report.
SANDEEP SINGH
PREFACE
SANDEEP SINGH
MBA (4TH SEM)
SRMIMT,KHORA BHURA
Table of Contents
Sr.No. CONTENT PAGE NO.
1 Acknowledgment II.
2 Preface III.
3 Declaration IV.
INDEX
CONTENTS PAGE NO.
CHAPTER 1- Introduction 1 – 37
1.1. Profile of Study 1 – 35
1.2. Justification of Study 36
1.3. Objectives of Study 37
CHAPTER 2- Review of literature 37 – 44
CHAPTER 3- Research Methodology 45 – 48
3.1. Sample Design 46
3.2. Data Collection Technique 47
3.3. Analytical Tools 47
3.4. Limitations of Study 48
CHAPTER 4- Results and Suggestions 49 – 63
CHAPTER 5- Findings and Suggestions 64 – 66
5.1. Findings 65
5.2. Suggestions 66
Bibliography I.
Annexure Π – IV.
AUTOMOBILE INDUSTRY
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that
Indian automobile industry will achieve mass motorization status by 2014.
INDUSTRY OVERVIEW
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto industry
was overlooked by the then Government and the policies were also not favorable. The
liberalization policy and various tax reliefs by the Govt. of India in recent years has made
remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently
growing at the pace of around 18 % per annum, has become a hot destination for global auto
players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development of an economy,
and India is no exception to it. With the growth of transportation system the Automotive
Industry of India is also growing at rapid speed, occupying an important place on the 'canvas'
of Indian economy.
Today Indian automotive industry is fully capable of producing various kinds of vehicles and
can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.
SNIPPETS
SEGMENT KNOW-HOW
Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda
contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS
makes 82% of the mopeds in the country.
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the
market share. Among the passenger transport, Bajaj is the lead by making 68% of the
three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52%
share in passenger cars and is a complete monopoly in multipurpose vehicles. In utility
vehicles Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata
Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.
MISCELLANEOUS
Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the
country by the second half of 2008. It would be set up by city-based Prajay Engineers
Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile
financing institutions and insurance services to create a complete range of services required
for both auto companies and customers. It will also have a multi-purpose convention centre
for auto fairs and product launches.
• Honda Civic
• Honda CR-V
• Maruti Suzuki Grand Vitara
• Terracan & Tucson
• Mitsubishi Pajero
• Audi A4
Rs. 15-30 Lakh
• Opel Vectra
• Honda Accord
• Mercedes C Class
• Toyota Camry
• Audi A6, A8 & Audi TT
• BMW X5, 5 Series & 7 Series
• Mercedes E Class, S Class, SLK, SL & CLS-Class
Rs. 30-90 Lakhs • Porsche Boxster, Cayenne, 911 Carrera & Cayman S
• Toyota Prado
• Volvo
• Bentley Arnage, Bentley Continental GT & Flying Spur
• Rolls Royce Phantom
Above Rs. 1 Crore
• Maybach
During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes.
IN BRIEF
The origin of automobile is not certain. In this section of automobile history, we will only
discuss about the phases of automobile in the development and modernization process since
the first car was shipped to India. We will start automotive history from this point of time.
The automobile industry has changed the way people live and work. The earliest of modern
cars was manufactured in the year 1895. Shortly the first appearance of the car followed in
India. As the century turned, three cars were imported in Mumbai (India). Within decade
there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was
created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by
Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost
that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style
rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder
engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited
more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than
their predecessors. The 1940s saw features like automatic transmission, sealed-beam
headlights, and tubeless tires.
INDUSTRY INVESTMENT
According to Commerce Minister Kamal Nath, India is an attractive destination for global
auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India,
despite the absence of specific trade agreements.
CURRENT SCENARIO
OVERVIEW
Snippets
Why India
The economy of India is emerging. The following table shows the ranking of India in the past
four years.
The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per
cent.
CURRENT SCENARIO
• The Indian automobile industry crossed a landmark with total vehicle production of
10 million units.
• Car sales was 8,82,094 units against 8,20,179 units in 2008-09.
• The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765
units in 2008-09.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against
3,18,430 units in 2008-09.
OVERVIEW
Snippets
India, in auto sector, is turning to be a sourcing base for the global auto majors. The
passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple
of years, says the ICRA report. The industry is likely to maintain the growth momentum
picked up in 2002-03.
The ICRA's analysis points on the auto sector that the passenger car market in the country
was inching towards cars with higher displacements. The sports-utility-vehicle (SUV)
that was getting crowded everyday, would witness intense competition as many SUVs
had been competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers had already
launched their premium SUVs in the market to broaden their portfolio and create product
excitement in the segment estimated at about 10,000 unit annually.
In the two-wheeler segment, according to the report, the motorcycles would clock 11.5
per cent rise during 2005-2008 over its siblings-scooters and mopeds. Scooters sales
would decelerate and mopeds would also see the same. Overseas market would present
huge opportunities for the two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy
commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks
would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per
cent.
• The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as
against 78,97,629 units in 2008-09.
• The automotive industry crossed a landmark with total vehicle production of 10
million units.
• According to the Society of Indian Automobile Manufacturers (SIAM), car sales was
8,82,094 units against 8,20,179 units in 2008-09.
• The growth of domestic passenger car market was 7.5 per cent
• Car exports stood at 1,70,193 units against 1,60,670 units in 2007-08.
• The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units
against 62,09,765 units in 2007-08.
• Motorcycles had the upward march, 17.1 per cent in domestic market touching
58,15,417 units against 49,64,753 units in 2007-08.
• Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in
2007-08.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against
3,18,430 units in 2006-07.
• Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23
per cent growth in the year ended March 31, 2007.
• Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237 units against 1,
19,924 units in 2006-07.
• Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862 units in
2006-07.
The Indian auto parts industry is significantly fragmented with a large number of players
having a turnover of less than US$10 million per year. The industry directly employs about
2,50,000 people and has an annual turnover over US$ 56.3 billion.
• Estimated market size - US$ 6.7 bn
• Estimated market size by 2012 - US$ 17 bn
• Projected CAGR - 15%
Note: Nearly two-thirds of the auto component production is consumed directly by Original
Equipment Manufacturers (OEMs).
Market Advantage
OVERVIEW
Snippets
Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned
the manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian
middle-class. The cabinet passed a unanimous resolution for the development and production
of a "People's Car." It was christened Maruti Limited. However, the company as Maruti
Udyog Ltd. matured only after the death of Sanjay Gandhi. The Maruti800 car went on sale
in 1983. By 1993 it sold up to 1,96,820cars
1991, the liberalisation of the Indian economy opened the market for foreign automobile
makers to venture in India. The license raj ended in 1993 and many foreign players entered
the Indian market by way of Joint ventures, collaborations or wholly owned subsidiary.
Segments Companies
Cars/ SUVs • Suzuki • Daimler-Chrysler
• Honda • Skoda
• Toyota • Fiat
• Mitsubishi • Hyundai
• GM • Tata
• Ford • M&M
Two-wheelers • TVS • Yamaha
• Hero Honda • Kinetic
COMPANY PROFILE
MARUTI UDYOG LTD. (MUL)
"
Count on Us" - Maruti Suzuki
Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be honoured with
an ISO 9000:2000 certificate. The company has a joint venture with Suzuki Motor
Corporation of Japan. It is said that the company takes only 14 hours to make a car. Few of
the popular models of MUL are Alto, Baleno, Swift, Wagon-R and Zen. The largest
automobile manufacturer in South Asia, Maruti Suzuki India Ltd., is a publicly listed
automaker in India and a subsidiary of Suzuki Motor Corporation of Japan, incorporated in
February, 1981. Largely credited for having brought in a revolution in the Indian automobile
industry, the automaker began its production in 1983 with Maruti 800. on September 17,
2007, Maruti Udhyog Limited was renamed Maruti Suzuki India Limited, while locating its
headquarters in Delhi. The manufacturer exports approximately 50,000 cars annually and has
a large domestic market of 730,000 sales annually. The manufacturer is presenting its
customers with applaudable models like A-star, Swift, Estillo, Wagon R, Alto, Grand Vitara,
etc.
QUICK FACTS
• http://www.oppapers.com/essays/Indian-Automobile-Industry-Maruti
Product
Brands
s
Four Maruti 800 Maruti Alto Maruti Baleno
Wheelers Maruti Esteem Maruti Grand Vitara XL-7 Maruti Gypsy King
Maruti Omni Maruti Suzuki SX4 Maruti Swift
Maruti Versa Maruti Vitara Maruti Wagon-R
Maruti Zen Maruti ritz
BOARD OF DIRECTORS
Mr. R. C. Bhargava, Chairrman
Mr. Shinzo Nakanishi, Managing Director & Chief Executive Officer
Mr. Keiichi Asai, Director (R&D).
Mr. Hirofumi Nagao, Joint Managing Director
Mr. Tsuneo Ohashi, Director (Production)
Mr. Shuji Oishi, Director (Marketing & Sales)
Mr. Osamu Suzuki, Director
Mr. D. S. Brar, Director
Mr. Amal Ganguli, Director
Ms. Pallavi Shroff, Director
Mr. Manvinder Singh Banga, Director
• M800, WagonR and Swift topped their segments in the TNS Total
Customer Satisfaction Study Leadership in the JD Power Initial
Quality Study - Alto number one in its segment for the 2nd time
in a row, Esteem number one in its segment for the 3rd year in a
row, Swift number one in the premium compact segment.
• WagonR and Esteem top their segments in the JD Power APEAL
study.
• TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR)
study (#1 in Auto sector)-Feb 05.
• Maruti bagged the "Manufacturer of the year" award from
Autocar-CNBC (2nd time in a row)-Feb 05.
• First Indian car manufacturer to reach 5 million vehicles sales.
• Business World ranks Maruti among top five most respected
companies in India-Oct 04.
SALES PERFORMANCE
(Rs. in Lacs)
PARTICULARS QUARTER NINE MONTHS FINANCIAL YEAR
ENDED ENDED ENDED
31.12.08 31.12.09 30.06.2008
31.12.08 31.12.09
(6 month) (9 month) (Audited)
Domestic Vehicles Sold
137,127 122,042 380,763 351,583 487,402
(No.)
Export Vehicles Sold
7,883 14,027 26,656 37,958 48,899
(No.)
Total Vehicles Sold
145,010 136,069 407,419 389,541 536,301
(No.)
Net Sales 310,431 279,646 874,309 787,726 1,091,075
Total Income 322,079 293,837 909,516 821,177 1,135,387
Total Expenditure 264,831 245,363 764,078 692,645 955,614
Profit before Tax 50,269 37,207 122,454 91,465 130,489
Net Profit 33,901 23,966 82,813 59,418 85,363
MILESTONES
• Maruti ritz(diesel,petrol)
COMPANY FLASHBACK
Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meet the
growing demand of a personal mode of transport, which is caused due to lack of efficient
public transport system. The incorporation of the company was through an Act of Parliament.
Suzuki Motor Company of Japan was chosen from seven other prospective partners
worldwide. Suzuki was due not only to its undisputed leadership in small cars but also to
commitments to actively bring to MUL contemporary technology and Japanese management
practices (that had catapulted Japan over USA to the status of the top auto manufacturing
country in the world).
A licence and a Joint Venture agreement was signed between Government of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
The objectives of MUL, then are as cited below:
In 2001, MUL became one of the first automobile companies, globally, to be honoured with
an ISO 9000:2000 certificate. The production/ R&D is spread across 297 acres with 3 fully-
integrated production facilities. The MUL plant has already rolled out 4.3 million vehicles.
The fact says that, on an average two vehicles roll out of the factory in every single minute.
The company takes approximately 14 hours to make a car. Not only this, with range of 11
models in 50 variants, Maruti Suzuki fits every car-buyer's budget and any dream. India's
largest automaker, Maruti Suzuki has filed an 11% rise in the March 2010 sales on a YoY
basis. With the total sales standing at 95,123 vehicles in March 2
Tata Motors is India's largest automobile company.It is the larg ecommercial vehicle
manufacturer in India and 2nd largest passenger car manufacturer. It is the 5th largest
medium and heavy commercial vehicle manufacturer in the world. The popular brands of the
company are Tata Indica, Tata Indigo, Tata Sumo and Tata Safari.
QUICK FACTS
Founder Jamshedji Tata
Year of Establishment 1945
Industry Automotive
Business Group The Tata Group
Listings & its codes BSE - Code: 500570
NSE - Code: TELCO & TATAMOTORS
NYSE - Code: TTM
Corporate Office Bombay House
24, Homi Mody Street
Mumbai 400 001, India
Tel.: +(91)-(22)-56561676
Works Jamshedpur, Pune, Lucknow and Dharwad
E-mail am@tatamotors.com
rbc@telco.co.in (for international inquiries)
• http://www.motorbeam.com
• http://www.tatamotors.com
• Tata Indigo was voted as the 'most exciting new car' by the ICICI
Bank and Overdrive Awards.
2002 • The Indian Merchants' Chamber Diamond Jubilee Endowment
Trust Award was presented with the 'Industry and Technology
Award.'
• Tata Indica was presented with the 'voice of the customer award'
for the 'best diesel small car' at NFO Automotive India.
Financial Year
2008-09 2007-08
APPROPRIATIONS:
1. 1 Apr 2010 ... The company's total sales rose 29% to 10.18 lakh vehicles in
the year ended March 2010 over the year ended March 2009. ...
MILESTONES
1945 • 1945 Establishment of Tata Engineering and Locomotive Co.
Ltd. to manufacture locomotives and other engineering products.
1948 • 1948 Introduced steam road roller in collaboration with Marshall
Sons (UK).
1954 • 1954 JV with Daimler Benz AG (West Germany) to manufacture
medium commercial vehicles. Within 6 months, the first vehicle
rolled out.
1959 • 1959 Research and Development Centre set up at Jamshedpur.
1961 • 1961 In exports, the first truck shipped to Ceylon (now Sri
Lanka).
1966 • Setting up Engineering Research Centre at Pune to give impetus
to the automobile Research and Development.
1971 • 1971 Introduction of DI engines.
1977 • 1977 The first commercial vehicle manufactured in Pune.
1983 • 1983 Commencement of manufacturing Heavy Commercial
Vehicle.
1986 • 1986 The first light Commercial Vehicle produced, Tata 407,
indigenously designed, followed by Tata 608.
1991 • 1991 Tata Sierra launched, TAC 20 crane produced and one
millionth vehicle rolled out.
1994 • 1994 Tata Sumo and LPT 709 launched. JV with M/s Daimler-
Benz/ Mercdes-Benz and Tata Holset Ltd., UK.
2004 • Tata Motors and Daewoo Commercial Vehicle Co. Ltd. signed
investment agreement and Tata Daewoo Commercial Vehicle
Co. Ltd. (TDCV) launched NOVAS, the heavy duty truck in
Korea. Listed on NYSE.
2005
• 5,00,000th passenger vehicle rolls out. Launch of Starbus and
Globus (buses and coaches), Tata Ace (Indi's first mini truck)
and Tata Novus, in India as well as in Korea by TDCV. New
factory at Jamshedpur inaugurated for Novus.
2007-08
• THE GREAT INVENTION
------------------------------------------------- TATA NANO small
car only in one lakh
COMPANY FLASHBACK
Tata Motors Limited is the largest automobile company in India with revenues touching to
Rs. 20,483 crores (USD 4.7 billion) in the financial year 2004-05. It leads the market in
commercial vehicles in each segment and is the second largest in the passenger vehicles
segment. Globally, Tata Motors stands fifth in the medium and heavy commercial vehicle
manufacturer category.
Established just in 1945, the company's presence cuts across the length and breadth of the
country. More than 3 million its-manufactured-vehicles ply on the Indian roads since the first
one rolled out in 1954.
This company is the first from the country's engineering sector to be listed in the New York
Stock Exchange (Sep. 2004) and has also emerged as a global automotive company.
Through its subsidiaries, Tata Motors has engaged in providing engineering and automotive
solutions. With the pace of new product development, the company has launched Tata Ace,
in the year 2005, India's first indigenously developed mini-truck.
Tata Motor's 22,000 employees are guided with the vision, "best in the manner in which we
operate, best in the products we deliver, and best in our value system and ethics."
TATA NANO
Tata Motors Ltd on Thursday wheeled out the world's cheapest car, priced at 100,000 rupees
(2,500 dollars).
Here are key facts about the four-door, mini hatchback named the Nano, which is due to hit
the Indian market later this year.
Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan Micra and the
Smart.
Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high. Can seat four
to five people.
Engine: A two cylinder 623 cc, 33 hour (65 miles per hour).
Pollution: Exceeds Indian regulatory requirements and can meet strict Euro IV emission
standards. In terms of overall pollutants, Tata says the car is better than two-wheelers
manufactured in India currently. horsepower rear mounted, all aluminum, multi-point fuel
injection petrol engine can power the car to top speeds of 105 kilometers per
Company Details: Tata Motors is India's largest vehicle company with revenues of 7.2
billion dollars in 2006-2007. It is the leader in commercial vehicles, such as trucks and buses,
and the second largest in passenger vehicles. There are over four million Tata vehicles on
Indian roads.
Safety: Car exceeds current regulatory requirements with a strong passenger compartment,
crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.
Initial Annual Production Target: 250,000 units to rise later to 350,000. PRICE: Basic
model price 100,000 rupees (2,500 dollars) plus tax and transport costs, which will bring on
the road price to at least 120,000 rupees. The price of two deluxe models that will include air-
conditioning and other features to be announced later.
Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned Suzuki Maruti stable
whose base model sells for about 4,800 dollars – nearly double
the price of the Nano.
Nearest International Rival: China's Chery QQ which retails for 3,600 dollars.
Sales: Tata will focus on selling the car in India for the next two to three years, before eyeing
Latin American and Southeast Asian markets.
Market: India's car market is a huge draw because car penetration is just seven per 1,000
people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according
to the Society of Indian Automobiles.
FIAT INDIA PVT LTD
Fiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter of “Società
Anonima Fabbrica Italiana Automobili Torino” was signed. Among the members of the
Board of Directors, Giovanni Agnelli stood out in the group of investors and won recognition
for his determination and strategic vision. In 1902 he became the Managing Director of the
companyIn 1902 he became the Managing Director of the company. The name is an acronym
for Fabbrica Italiana Automobili Torino (Italian Car Factory of Turin). The history of Fiat
began many years ago, at the dawn of Italian industrialisation, in which the company has
always played a leading role. From that moment on, the Fiat brand spread throughout the
world and developed extensively.
Today, following a change in corporate culture and mentality, the name Fiat is still fraught
with meaning, and not only on account of the cars we produce cars with attractive styling
and exciting engines, cars that are accessible and improve the quality of everyday life - but
also on account of our heritage and tradition: let's take a stroll back in time through the
brand's history.
QUICK FACTS
Country Italy
Year of Establishment July 11, 1899 in Turin (Italy) as F.I.A.T
In India a contract was signed with Premier Automobiles in
1951.
Industry Automobiles manufacturing
Business Group Fiat Auto Spa
Listings & its codes NYSE: FIA; ISE: IT0001976403
Contact Details LBS Marg, Kurla (W)
Mumbai-400070
International Corporate Via Nizza, 250
Headquarters 10126 Turin
Italy
• http:// www.fiat-india.com/
BOARD OF DIRECTORS
PERFORMANCE
Company Flashback
Fiat is a big industrial Group having more than one hundred years' experience in the motor
vehicle sector, designing, manufacturing and marketing cars, trucks, tractors, agricultural
machinery, construction equipment, motor vehicle engines and components, and production
systems. Currently the Group is present in 190 countries and it performs manufacturing and
service activities through Operating Sectors that can be divided into business areas.
Fiat Auto produces and sells automobiles under the Fiat, Alfa Romeo and Lancia brands and
light commercial vehicles (LCV) under the Fiat brand. The Group also controls Maserati and
Ferrari, the producer of luxury sports cars that excel for their exclusive characteristics,
technology and performance.
In India, Fiat is wholly managed by Fiat Auto Spa of Italy. Here the company owns the
brands Fiat , Alfa Romeo & Lancia. Fiat India is investing heavily in the countr
Hyundai Motor India Limited
Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the world.
Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car
manufacturer in India. Santro, Getz, Accent, Elantra, Sonata Embera and Tuscon are the most
successful brands of HMIL. The company is an ISO 14001 for its sustainable environment
management practices.
Quick Facts
Country South Korea
Year of Establishment 1967
Listings & its codes KSE: 005380; LSE: HYUD
Retail Finance Partners HDFC Bank, ICICI Bank, Mahindra Finance, Punjab
National Bank, Sundaram Finance.
Contact Details A-30, Mohan Co-Operative Industrial Estate
Mathura Road, New Delhi - 110044
Tel: +(91)-(11)- 41678800
Fax: +(91)-(11) - 41678811
Complaints & Queries 1800-11-4645 (Toll Free)
+(91)-(11)-26924645
cr@hmil.net
• http://www.hundyigroups.com
• Accent
• Elantra
• Getz
• Hyundai i10,i20
• Santro Xing
• Sonata Embera
• Tucson
Awards
Hyundai i10 wins all the prestigious awards of the year 2008-2009.
• Hyundai Accent topped the 'JD Power Asia Pacific IQS' for 2002
and the APEAL study for 2001 & 2002.
Company Flashback
Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is South
Korea's largest car maker. It is headquartered in Yangjae-Dong Seocho-Gu Seoul. HMC is
also the world's sixth largest car maker and operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea.
In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly
owned subsidiary of Hyundai Motor Company and is the second largest and the fastest
growing car manufacturer in India. Currently the company markets 32 variants of passenger
cars in six segments. Santro in the B segment, Getz in the B+, the Accent in the C segment,
Elantra in the D segment, Sonata Embera in the E segment and the Tucson in the SUV
segment.
HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over previous year. It is the country's fastest growing car company having rolled-out
10,00,000 cars in just 90 months since its inception and is the largest exporter of passenger
cars with exports of over Rs. 1,800 crores. The company has recorded a growth of 27.2% in
exports over the year 2004.
The company has been awarded the benchmark ISO 14001 certification for its sustainable
environment management
1.2 Justification of Study
Project aims to understand and enunciate the working process of different automobile and
evaluating its outcome in the four- wheeler automobile sector. Over the past few years, there
has been tremendous progress made around the world in opening up travel and tourism
markets to the benefits of increased competition.
One of the main aspects of the project is to analyze the different products and services offered
and initiatives adapted by the four- wheeler automobile sector their product. Selling
“intangible assets” is one of the toughest jobs in the world. The project is more of a team
effort and will incur team returns.
1.3 OBJECTIVE OF STUDY
The main objective is to find out the current trend going on in the industry i.e. (about the
product, price, place and promotion). This research aims at studying the. THE STUDY OF
CONSUMER PREFERENCE & CONSUMER PERCEPTION TOWARDS VARIOUS
BRANDS OF CARS.
Relevant literatures pertaining to the present study on four wheeler automobile industry are
included in this chapter. The literatures are helpful for proper understanding the four
wheeler automobile industry and its various related aspects. Review of literature is also
helpful in effectively fulfilling the objectives for which the research project has been
undertaken.
RNCOS industry in their study of Indian Automobile Sector provides a forecast and
analysis based on various macro- and microeconomic factors, sector and industry
specific databases, and an in-house statistical and analytical model. This model takes
into account the past and current trends in an economy, and more specifically in an
industry, to bring out an objective market analysis. In this research main topics
covered are: Study of the Indian automobile industry structure, Analysis of
performance of industry sub-segments and their future outlook, Understanding the
Indian auto component market and its growth aspects, Identification of future
prospects for the Indian automobile industry.
In The Wall Street Journal, India Infoline Sector Reports published a report
on Automobile- Indian four Wheelers Industry which reveals that India is the
second largest manufacturer and producer of four-wheelers in the world. It
stands next only to Japan and China in terms of the number of four-wheelers
produced and domestic sales respectively. This distinction was achieved due
to variety of reasons like restrictive policy followed by the Government of
India towards the passenger car industry, rising demand for personal transport,
inefficiency in the public transportation system etc
Dr. Amit Kumar Dwivedi and Mr. Punit Kumar Dwivedi, in their article
on Automobile Sector: Industry Vs Indian Middle Class in Indian MBA
concluded that that there are great opportunities and possibilities in the
automobile sector. But hike in the fuel price is influencing the market of this
industry.
There is a need of a very liberal policy for the fuel prices and requires a great good deal with
fuel supplying countries. Though, the performance of the industry is better instead of high
and unfavourable fuel policy.
The new launching of Tata's Nano 'One Lakh Car' which is also known as People's Car is also
a very good strategy to capture the middle class customers. Introduction of Nano and Bajaj
Lite will definitely affect the growth and sales volumes of cars which will also affect the
industry by reaching, catching the Indian middle class and fulfilment of their own car need.
CONSUMER PREFERENCE
Consumer Preference is a business term which is used to capture the idea of measuring how
satisfied an enterprise’s customers are with the organization Efforts in a market place.
Every organization has customers of some kind. The organization provides products (goods
and services) of some kind to its customers through the mechanism of a marketplace. The
products the organization provides are subject to competition whether by similar products or
by substitution products. The reasons on organization is interested in the satisfaction of its
customers is because customers purchase the organization’s products. The organization is
interested in retaining its existing customers and increasing the number of its customers.
Companies routinely test the market to find out what customers like and dislike about
their products and competitors' products. This is usually done by an internal marketing
department or outsourced to a market research firm. Phone interviews, paper surveys,
electronic surveys, focus groups and consumer samplings are common methods for
gathering information.
Here is a popular example of market research: A customer has finished shopping and
paying for merchandise at a local grocery store. Before handing the receipt to her, the
cashier points to and explains that she has been invited to participate in a short survey
about her visit. If she chooses to participate, she will receive $5 off her next visit and a
chance to win a large monetary grand prize.
After gathering information, the next step for the company is to determine what it means.
Analysis of the information may lead the company to change the formula, packaging,
color, size or some other feature of the product. In the case of the suds in the shampoo,
the manufacturers may find that customers are continuing to prefer and associate the
foamy lather with high quality cleanliness, leading them to keep the same formula or
decide to add even more of the sudsing agent.
CONSUMER BEHAVIOUR
In today’s challenging and competitive world of last changing technology, consumer tastes
are also characterized by fast changes. So to survive in the market the firms have to be in
touch with the changing consumer preferences. Marketers have to understand the consumer
behaviour and factors influencing the buying behaviour of the customers in order to be
successful in this dynamic and competitive environment.
Consumer Behaviour is the behaviour that the consumer display while searching for,
evaluating, purchasing and disposing off products and services that they expect will satisfy
their needs. Consumer behaviour is the study of how consumer makes their decisions to
spend their resources on consumption related items i.e. time, efforts and money.
Study of consumer behaviour proves the marketers an insight regarding the consume
preferences and helps them in effective market segmentation and targeting. The importance
of consumer behaviour lies in the fact that behaviour can be understood and influenced to
ensure a positive purchase decision. So a round understanding of consumer behavior is
necessary for long run success of any marketing program. That’s why the marketing
managers interest lies exactly in understanding consumer behavior to ensure that his
marketing strategy results in purchase of the product.
Deborah J. Macinnis A notable human capacity is the ability to look to the future and
aspire to achieve desired states The marketplace provides rich sources of hope and invites us
to the endless pursuit of happiness. while some researchers recognize its importance,
definitions in the psychology, sociology, philosophy, medical, and religion literatures often
conceptualize hope in different ways. Understanding Hope and its Implications for
Consumer Behavior sheds light on the relevance and importance of hope to consumer
behavior. The authors explore the conceptual meaning of hope and a definition of hope and
the constituent elements that underlie it is articulated.
The study of consumer behaviour is quite complex, because of many variables involved and
their tendency to interact with and influence each other. The main determinants of consumer
behaviour are:
1. External Variables
2. Individual determinants of Consumer Behaviour
PERCEPTUAL MAPPING
Consumer’s perceptions of products are developed in a complex way and are not easily
determined by marketers. However, a technique known as perceptual mapping may be used
in exploring consumer’s product perceptions. Since product can be perceived on many
dimensions (such as quality, price and strength) the technique is multidimensional in nature.
That is, it allows for the influence for more than one stimulus characteristic on product
perceptions, typically consumer feel out measuring scales to indicate their perceptions of
many characteristics and similarity of competing brands. Computer programs analyze the
resulting data to determine those products characteristics or combination of characteristics
that are most important to consumers in distinguishing between competing brands. Results of
this analysis can be plotted in terms of perceptual “maps” which display how consumes
perceive the brands, and their differences, on a coordinate system.
Research Methodology
When we talk of Research Methodology, we not only talk of Research Methods but also take
into consideration the logic behind the methods which we use in the context of our research
study and explain why we use or why we are using a particular method or technique. The
information that is to be needed for fulfilling the objective of study was collected from
various primary and secondary sources.
MEANING OF RESEARCH
Research is defined as ‘a scientific and systematic search for pertinent information on a
specific topic. Research is an art of scientific investigation. It is an academic activity. It is a
systematized effort to gain new knowledge.
“Research is defined as a careful investigation or inquiry especially through search for new
facts in any branch of knowledge.”
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of
population was selected on the basis of convenience.
Target Population - The respondents are those who are having their own Cars.
Sample size – 100 persons were visited for the purpose of the study.
Sampling Technique - In this study, the respondents were chosen through
convenience and judgmental sampling.
Sample Area - Ambala Cantt and city
Data Analysis – Data collection through survey was analyzed with the help of simple
percentage, tabular and graphic method that includes both graphs and pie charts.
The whole secondary data were collected from industry profile, books, magazines and
internet. While primary data where collected though survey. The customer survey was done
though the questionnaire. Question consists of dichotomous multiple questions and 5 point
ranking scale. A copy of questionnaire has been attached with the report.
Most favorable price ranges selected by the customers.
Source of data:
There are two types of data: primary data and secondary data. Primary data are collected
with the help of questionnaire and secondary data was taken from industry profile, books,
magazines and internet. The information brochures of certain companies, informal links with
concerned person in this line, articles in newspapers and magazines and journals have also
been consulted as a secondary source of information.
Research plan
The research study is descriptive in nature. The established objectives were kept in mind
during the study, however the hypothesis was formed as the study was made in the form of
descriptive design attempting to analyze the attitude of respondents. This chapter describes
the methodology of the study. This project is based on information collected from primary
sources. After the detailed study, an attempt has been made to present comprehensive
analysis of the industry. The data had been used to cover various aspects like consumption,
consumer’s preference and customer’s satisfaction regarding two wheelers. In collecting
requisite data and information regarding the topic selected, I went to the residents of Ambala
city & Ambala cantt and collected the data.
A structured questionnaire was administered for the purpose of obtaining information form
the respondents. Care was taken to put the questions related to subject. It contains close-
ended as well open-ended questions as the objective demanded.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of
population was selected on the basis of convenience
1. As the data was collected by way of questionnaire which was to be filled by respondents,
and taking time from respondents was the most difficult & some of the respondents did
not responded well.
2. This project is also confined on the basis of secondary data collected only hence it
reliable data for the study.
3. As the research is based on the data that already available and collected through various
means not includes the survey, hence it imposes limitations, as it is just possible that the
secondary data may be unsuitable or may be inadequate in the context of the topic under
study.
4. One of the major limitations of the study is that, as the data is collected though the
secondary means, hence it creates uncertainties regarding the methods of the data
collection, time of data collected, and any bias of the compiler during the pervious
research and at the time of data collection.
5. Limitation of time & resources were a major factor influencing the research study.
What is your Occupation?
occupation response
Businessmen 60
Teaching 10
Defence 5
Any other 25
Interpretation: 60% respondents are having Maruti cars, 25% are having
Hyundai cars, 10% are having TaTa, 5 % are having others brand cars and
nobody is having fiat.
Interpretation: 50% respondent says that friends and relatives prompted them
to purchase car, 15% says past experience, 10% says dealer recommendation,
15% says word of mouth, and 10% says Advertisements .
st
e
y
ce e
ce
m
o
c
lu
ce en
c
ce
e
a
h
a
v
ri
i
rm
sc
fic
P
le
f
o
a
a
e
n
rf
M es
l
te
e
n
e
R
P
a
u
in
in
F
a
Price 40
Performance 25
Resale value 10
Maintenance cost 5
Fuel efficiency 15
Finance scheme 5
Interpretation: Most of the Respondent 40% says that they consider price
attribute, 25% says performance, 10% says resale value, 5% says maintenance
cost, 15% says that fuel efficiency and 5% says that finance scheme.
Effect of PRICE on Purchase Decision
Interpretation: 65% are strongly agreed, 35% are agreed and others gave no
response.
Effect of FUEL EFFICIENCY on Purchase Decision
Interpretation: 75% persons are agreed, 15% are strongly agreed, and 10%
have no response.
Effect of Resale Value on Purchase Decision
Interpretation: 55% are agree, 35% give no response, and 10% are strongly
agree.
Effect of PERFORMANCE on Purchase Decision
Interpretation: 45% are strongly agreed, 50% are agreed, and 5% gave
no response.
Effect of FINANCE SCHEME on Purchase Decision
Interpretation: 25% are strongly agreed, 40% are agreed, 15% gave no
response and 20% are strongly disagree.
Ranking of cars after considering all attributes
Maruti 60
Hyundai 25
Tata 15
Fiat 0
HYUNDAI
Very High Satisfactory Low Very
High Low
Price 25 65 10 0 0
Fuel 30 45 25 0
Efficiency
Resale value 25 45 30 0
Performance 5 30 55 10 0
Maintenance 55 35 10 0
cost
Finance 5 40 50 5 0
Scheme
TATA
Very High Satisfactory Low Very
High Low
Price 30 40 20 10 0
Fuel 10 35 45 10 0
Efficiency
Resale value 0 10 30 40 20
Performance 0 35 55 10 0
Maintenance 15 45 30 10 0
cost
Finance 10 30 40 10 10
Scheme
FIAT
Very High Satisfactory Low Very
High Low
Price 20 70 10 0 0
Fuel 5 25 60 10 0
Efficiency
Resale value 0 0 25 65 10
Performance 0 5 80 15 0
Maintenance 10 55 30 5 0
cost
Finance 10 30 55 0 5
Scheme
5.1 FINDINGS
In the survey , we included people from three areas – students, servicemen and
businessmen.The findings of the research shows –
Among the five attributes ( which we considered important for customers’
purchasing decision ) customers gave highest consideration to looks and style
followed by the mileage. Other attributes like comfort, service and spares were
considered later.
Normally, all the three segments maintained their car single handed and the
students and the servicemen serviced their car regularly but the businessmen
were a little hesitent in their servcing of the cars.
Electronic media ( TV) is the most commonly used medium for the brand
awareness. Other medias like magazines, newspaper, hoardings came later.
The most important finding is that brand advertising for maruti is much more
than any other brand and is quickly picking up the interest of the cosumers and
hence coming with a larger market share. May be it could overcede Huyandi in a
couple of days to come.
5.2 Suggestions
Company should provide effective finance scheme by which their customer group can
be increased.
Fiat should increase brand awareness + promotional activities among people , TATA
should work upon reducing maintenance cost , increase other attributes performance
fuel efficient etc.
Hyundai should work upon increasing performance, fuel efficiency by which its resale
value can be increased.
Maruti should try to maintain its market by continuously providing good attributes,
also should introduce less price cars.
BIBLIOGRAPHY
BOOKS
• Schiff man Leon G & Kanuk Lesie Lazar, “Consumer Behavior” 4th ed.; Prentice-
Hall of India pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.
• Kotler Philip, “Marketing Management” ed. 2002; Prentice-Hall of India pvt ltd, M-
97, Connaught Circus, New Delhi-110001, India.
• Keller Kevin Lane, “Strategic Brand Management” ed.2003; Prentice-Hall of India
pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.
• Research methodology by CR. KOTHARI.
WEBSITES
• http://www.zigwheels.com/fiat-grande-punto
• http://www.fiat-india.com/Punto-img- intro.aspx?
ModelId=6http://www.cars.tatamotors.com/
• http://www.bloombergutv.com/industry-news/automobile-industry-india/48324/tata-
motors-sells-20--telcon-stake.html
• http://www.marutisuzuki.com/showroom.aspx
• http://www.maruti.com/
• http://www.carfinderservice.com/make/Hundayi
• shttp://www.autocarbe.com/search/hundayi+i20u+model+2010
NAME………………………………………………………………....................
ADDRESS………………………………………………………………………...
CONTACT NO……………………………………………………………………
………………………………………………………………………
a) Maruti b) TATA
c) Fiat d) Hyundai
e) Any other……………………..
a) Yes b) No
a) Price b) Performance
7. What comes in your mind while considering the under mentioned brands: -
1. HYUNDAI
3. MARUTI
4. TATA
5. FIAT
Reason……………………………………………………………………….