INTERNATIONAL SCHOOL OF BUSINESS & MEDIA

Research on the reasons/factors why the sales Of Audi are more than Mercedes-Benz cars.

PGDM 3rd Trimester

ACADEMIC YEAR 2012-14

Guided By:
Mr. Jaysingh Bhosle

Submitted By:
Rohit Mehlan Ishan Gautam Dutta Ayush Tiwari Mukul Prabhakar Shashwat Bajpai Prateek Verma

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CERTIFICATE

This is to certify that Rohit Mehlan, Ishan Gautam Dutta, Mukul Prabhakar, Shashwat Bajpai, Prateek Verma & Ayush Tiwari have completed their project work on the subject entitled Research on the reasons/factors why the sales Of Audi are more than Mercedes-Benz cars which is based on the survey/ research study undertaken by them.

This project report is completed by the candidates under my supervision. It is an original unaided research study completed under my guidance to meet the partial requirement of the subject Business Research Methodology at ISB&M, Pune.

Prof. Jaysingh Bhosle Project Guide

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TABLE OF CONTENTS
Contents
PREFACE ....................................................................................................................................... 4 ACKNOWLEDGEMENT .............................................................................................................. 5 SUMMARY OF THE PROJECT ................................................................................................... 6 RATIONALE OF THE PROJECT ................................................................................................. 7 OBJECTIVE OF RESEARCH ....................................................................................................... 8 RESEARCH METHODOLOGY.................................................................................................... 9 INTRODUCTION TO THE TOPIC ............................................................................................. 10 DATA COLLECTION ................................................................................................................. 12 DATA REPRESENTATION........................................................................................................ 13 DATA ANALYSIS & INTERPRETATION................................................................................ 14 TESTING OF HYPOTHESIS ...................................................................................................... 35 MAJOR FINDINGS ..................................................................................................................... 36 SUGGESTIONS ........................................................................................................................... 37 LIMITATIONS ............................................................................................................................. 38 CONCLUSION ............................................................................................................................. 39 BIBLIOGRAPHY ......................................................................................................................... 40 ANNEXURE................................................................................................................................. 41 INCENTIVES AND THEIR IMPACT ON PRODUCTIVITY............................................ 42

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PREFACE

This project is based on the Research on the reasons/factors why the sales Of Audi are more than Mercedes-Benz cars.

Chapter 1- This chapter contains Rationale of Project, Objective of Study, and Methodology.

Chapter 2- This chapter contains the Introduction to the topic of study, Profile of the
organization.

Chapter 3- This chapter contains Data collection, Data representation, Analysis &
interpretation with different tools used Bar graph, Chi Square test for testing hypothesis.

Chapter 4- This chapter contains Major Findings, Suggestions, Limitations, Conclusion,

Bibliography and Annexure.

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ACKNOWLEDGEMENT
Gratitude is the fruit of great cultivation. Many people helped us in the efforts of drafting this research work successfully. By their valuable contribution & encouragement, we owe our sincere gratitude to those individuals, who have been the sources of inspiration & motivation.

We gratefully acknowledge our indebtedness to our respectable guide Mr. Jaysingh Bhosle for providing the opportunity to carry out this Research Work under his guidance. With great pleasure and without hesitating we could say that this project was just impossible without his moral support and guidance. I am also thankful to him for his precious suggestions, guidance, and encouragement at every step in the preparation of this project.

Finally, we extend our gratitude to all of them who helped us in this endeavor.

Thank You!

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SUMMARY OF THE PROJECT

The topic of our research is Research on the reasons/factors why the sales Of Audi are more than Mercedes-Benz cars on which we thoroughly studied various parameters and provisions which are applied.

During the process of data collection, we learned how to deal with the various mindsets of respondents. We came to know as to what factors/reasons which influence the buying decision of a customer of a premium automobile brand. During the data collection we used methods like Tables, Graphs and Chi Square test for getting realistic results.

We found that the factors like driving pleasure, after sales service, comfort, engine performance, features, variants and return on investment have a key role in determining the buying behavior which directly affect the sales of the automobile. All these factors were determined through a sample size of 20 customers who gave primary data about their cars.

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RATIONALE OF THE PROJECT

Since the world market is again showing trends of boom, the luxury/premium market is key to the success of the automobile industry are the top three German car brands. Out of these the two that is Mercedes-Benz and Audi have become cut-throat competitors in terms of sales and it is a curious question that we are trying to resolve through this research.

Benefits to the students:

The study will be beneficial for us in increasing our research knowledge and also it will give us exposure to the outside world through which we will learn as to how to interact with people and how to tackle the problems in the field of research.

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OBJECTIVE OF RESEARCH
This project is based on the Research on the reasons/factors why the sales Of Audi are more than Mercedes-Benz cars.

(a) Primary Objective To know the various factors determining consumer buying behavior affecting sales.

(b) Secondary Objective To study the psychological and behavioral aspects affecting sales. To assess the various technical features and compare them.

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RESEARCH METHODOLOGY
Research Methodology in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic research for pertinent information of specific topic. Research is an art of systematic investigation. Some people consider research as a movement, a movement to the known to the unknown. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions. Reaching conclusion, and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis.

- Clifford Woody

Sampling Method- Chi Square Method Sampling Size- The sampling size is 18. Area Covered- Mercedes-Benz- B.U.Bhandari
Audi- Pashankar Auto

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INTRODUCTION TO THE BRANDS

Mercedes-Benz - the benchmark and pinnacle of automotive engineering. One of my favorite new cars is their E-class diesel. Awesome highway cruisers. Audi - the best looking in terms of design and interior, not to mention their high quality interiors. Ride is a bit hard and probably wouldn't consider it unless a diesel came stateside in their new all road.

Background of Audi and Mercedes: The automobile industry saw a rapid growth all around the world in the recent years. There are many world class top car selling brands that launch very high quality cars with the most innovative ideas every year. All these brands are very closely competitive with each other.

About Audi:

Audi brand belongs to Volkswagen group which is a German automotive manufacturer which also owns some other brands like Bentley, Bugatti, Lamborghini. In the year 1965, the Audi was re-introduced by Volkswagen with a new series named Audi F103. If you see the logo of Audi brand, there are four rings linked to each other just like a chain where each ring represents individual car companies- Audi, DKW, Horch and Wanderer, showing their unity.

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About Mercedes:

Mercedes also called as Mercedes-Benz, a popular brand, also belongs to a German automotive manufacturer and it was launched into the market in the year 1901 for the first time. Two companies- Benz and Cie, Daimler Motoren Gesellschaft united and formed Mercedes Benz. Both companies are highly competitive even on their own. But after the world war-1, deep financial crisis was witnessed. So these two companies decided to merge and started their product sales as one. The Mercedes logo has a circle with three point Silver Star inside it which means to be able to travel in air, land and sea.

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DATA COLLECTION
Collection of data means the methods that are to be employed for obtaining the required information from the units under investigation. The method of collection of data depends upon the nature, object and scope of the investigation on the one hand availability of money and time on the other. It is prime important to know very clearly the points on which data is to be collected for the analysis of the problem at hand. There are two types of data: i. Primary Data ii. Secondary Data. Primary Data: Primary data are those which are directly collected from the field of investigation. These are collected by the researcher according to a planned way fixed up in the beginning of the project. They are collected for the first time and are then kept in the various forms for analysis purposes. According to Horace Secrist, By primary data we mean those data which are original, that is, those in which little or no grouping has been made, the instance being recorded or itemized as encountered. They are essentially raw materials. The collection of raw data is more technical, times taking and expensive but the conclusions through them are more realistic and hence are more reliable. In our research we used questionnaire method for primary data. Secondary Data: The primary data are collected by the researcher for the first time and are used for his purpose of study. Then they are stored for further uses in future either by him or by someone else working on the same or similar problems. When such are used again they are termed as secondary data. According to M.M. Blair, Secondary data are those already in existence and which have been collected for some other purpose than answering of the question of hand. In our research we have used the internet source for coming up with the features table.

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DATA REPRESENTATION
It is well said that one picture is better than thousand words. A diagram is a visual form for presentation of statistical data, highlighting their basic facts and relationship. The words graph, chart and diagram are used interchangeable for the pictorial representation of the statistical data.

It is very important to represent data through using different diagrams such as graphs, pie-charts, bar graphs etc. it helps in easy analysis and interpretation. Usually comparisons among the items are best shown by means of diagrams. The representation then becomes easier to understand the actual data.

Objective of Data Representation 1. To make a quick, lasting and accurate impression of the significant facts because diagrams are very attractive, impressive and interesting.

2.

To make data simple and intelligible because diagrams do not strain the mind of observer.

3.

To save time and labor in grasping the facts of the data and in drawing the conclusions.

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AUDI A6 3.0 TDI

OVERVIEW
Length Width Height Seating Capacity Displacement Fuel Type Max Power Max Power @ RPM Max Torque Max Torque @ RPM Mileage (ARAI) Transmission Type No of gears Drivetrain Air Conditioner Power Steering Power Windows Central Locking Anti-Lock Braking System Airbags Seat Upholstery Alloy Wheels
4915 mm 1874 mm 1455 mm 5 Person 2967 cc Diesel 241 bhp 4000 RPM 500 Nm 1400 RPM 16.66 kmpl Automatic 7 Gears AWD Automatic Climate Control Yes Front & Rear Remote Yes 6 Airbags Leather Yes

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TECHNICAL SPECIFICATION
Dimensions & Weight
Length Width Height Wheelbase Kerb Weight 4915 mm 1874 mm 1455 mm 2912 mm 1795 kg

Capacity
Seating Capacity Doors No of Seating Rows Fuel Tank Capacity 5 Person 4 Doors 2 Rows 65 litres

Engine & Transmission

Engine Type Displacement Fuel Type Max Power Max Power @ RPM Max Torque Max Torque @ RPM Mileage (ARAI) No of Cylinders Cylinder Configuration Valves per Cylinder Fuel System Transmission Type
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V6 diesel engine with common rail injection 2967 cc Diesel 241 bhp 4000 RPM 500 Nm 1400 RPM 16.66 kmpl 6 Cylinders In V Shape 4 Valves Comon Rail Injection Automatic

No of gears Drivetrain Suspension Front Suspension Rear Front Brake Type Rear Brake Type Steering Type Tyre Construction Front Wheel Diameter Front Tyre Profile Front Wheel Section Width Rear Wheel Diameter Rear Tyre Profile Rear Wheel Section Width

7 Gears AWD adaptive air suspension adaptive air suspension Disc Disc Electromechanical Power Steering Radial 17 inch 55 225 mm 17 inch 55 225 mm

Suspensions, Brakes, Steering & Tyres

UNITS SOLD
34678 units sold in 2012 as compared to 2011 in which 30741 units were sold.

2012

2011

FEATURES
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Safety
Airbags Dual-Stage Airbags Middle rear three-point seatbelt 6 Airbags Yes No

Braking & Traction

Anti-Lock Braking System Electronic Brake-force Distribution Brake Assist Electronic Stability Program Traction Control System Yes Yes Yes Yes Yes

Locks & Security

Engine immobilizer Central Locking Child Safety Lock Yes Remote Yes

Comfort & Convenience

Cruise Control Air Conditioner Rear AC Heater Power Steering Steering Adjustment Ash Tray Keyless Start D Changer
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Yes Automatic Climate Control Vents Only Yes Yes Tilt & Telescopic Yes Yes 6 CD

Headlight off and lgnition Key Off Reminder Paddle Shift Rear Parking Sensors Vanity Mirrors on Sun Visors Cigarette Lighter 12V Power Outlets

Yes No Yes Driver & Co-Driver Yes Yes

Seats & Upholstery

Seat Upholstery Active headrest Driver Height Adjustable Seat Lumbar Support Folding Rear Seat Driver Armrest Rear Armrest Head-rests Adjustable Head-rests Leather-wrapped Steering Wheel Front Seat Pockets Audio Controls in Rear Armrest Leather No Yes Driver & Co-Driver Partial Yes Yes Front & Rear Front & Rear Yes Yes No

Storage
Cup Holders Front & Rear

Doors, Windows, Mirrors & Wipers

Power Windows Rear Defogger
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Front & Rear Yes

Boot-lid Opener Door Pockets Outside Rear View Mirrors Adjustable ORVM Turn Indicators on ORVM Body-Coloured ORVMs Rear Wiper Rain-sensing Wipers Headlight Washers

Internal with Remote Front Both Sides Electrically Adjustable & Retractable Yes Yes No Yes Yes

Exterior
Sunroof / Moonroof Body-Coloured Bumpers Roof Mounted Antenna Electrically Adjustable Yes Yes

Lighting
Headlamps Automatic Head Lamps Fog Lamps Clear lens Head Lamp Daytime Running Lamps LED tail lamps Clear lens Tail Lamp Headlight Height Adjuster Projector with Xenon Yes Rear Yes Yes Yes Yes Yes

Instrumentation
Distance to Empty Average Fuel Consumption
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Yes Yes

Average Speed Clock Seat Belt Warning Low Fuel Level Warning Door Ajar Warning

Yes Digital Yes Yes Yes

Entertainment, Information & Communication

Music Player Size Integrated (in-dash) Music System Touch-screen Display GPS Navigation System AM/FM Radio CD Player MP3 Playback DVD Playback Bluetooth Compatibility iPod Compatibility USB Compatibility Aux Compatibility Speakers 2 Din Yes No No Yes Yes Yes No Phone & Audio Streaming Yes Yes Yes 6+

Wheels & Tyres

Alloy Wheels Tubeless Tyres Manufacturer Warranty Warranty (Years) 2 Yes Yes

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MERCEDES
TECHNICAL SPECIFICATIONS

Dimensions and Weights

Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheel Base (mm) Ground Clearance (mm) Front Track (mm) Rear Track (mm) Boot Space (liter) Kerb Weight (kg) Gross Vehicle Weight (kg) No of Doors 4868 1854 1471 2874 123 1585 1604 540 1825 2350 4

Fuel Economy
Mileage Highway (km/liter) Mileage City (km/liter) Mileage Overall (km/liter) 12 8 10

Capacities
Seating Capacity (person) Fuel Tank Capacity (liter) 5 80

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Performance
Maximum Speed 0-100kmph 1/4 Mile Km/Hour 7.9seconds seconds

Engine
Engine Type/Model Displacement cc Power (PS@rpm) Torque (Nm@rpm) Valve Mechanism Bore (mm) Stroke (mm) Compression Ratio No of Cylinders (cylinder) Cylinder Configuration Valves per Cylinder (value) Fuel Type Fuel System Diesel V6 4 15.8:1 6 92 83 231PS @3800rpm 540Nm @1600rpm V- engine 2987

Transmission
Transmission Type Gears/Speeds Clutch Type Automatic 7Gears Hydraulic Torque Converter

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Final Reduction Gear Ratio Front Suspension Rear Suspension McPhersons axle with coil spring Multi link independent suspensions with coil spring

Steering
Steering Type Power Assisted Minimum Turning Radius (meter) Speed-sensitive hydraulic rack & pinion steering Standard 5.6

Brakes
Front Brakes Rear Brakes Discs internally ventilated

Wheels and Tyres

Wheel Type Wheel Size Tyres Alloy Wheels 8.5 J x 17 H2 245/45 R 17

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FEATURES

Feature
Interior Cup Holders Folding Rear-Seat Tachometer Leather Seats AM/FM Radio CD Player

Availability

Comfort & Convenience

Air Conditioner Power Windows Power Door Locks Power Steering Power Seats Steering Adjustment Central Locking Defogger (Rear) Remote Boot/Fuel-Lid

Exterior
Alloy Wheels Tubeless Tyres Sun-Roof Front Fog Lights Rear Wash Wiper Anti-Lock Braking System Driver Air-Bags Passenger Air-Bags
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SURVEY RESULT

45 40 35 30 RATING 25 20 15 10 5 0 AUDI MERCEDES

MERCEDES AUDI

DRIVING AFTER SALE COMFORT 40 42 40 45 36 41

ENGINE 39 41

FEATURES VARIANTS 40 30 43 34

ROI 42 37

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Questionnaire (For Mercedes E-Class)

NameAge-

How do you rate ? ( 1 being the lowest and 5 being the highest)

Particulars
Driving Pleasure After Sale Service Comfort Engine Performance Features Variants Return on Investments Any Comments:-

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Questionnaire (For Audi A6)

NameAge-

How do you rate ? ( 1 being the lowest and 5 being the highest)

Particulars
Driving Pleasure After Sale Service Comfort Engine Performance Features Variants Return on Investments Any Comments:-

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DATA ANALYSIS & INTERPRETATION

1) Are you well aware of the goals and objectives of the organization?

YES NO

22 8

NO, 27%

YES, 73%

- Majority of the employees working in the organization are well aware of the goals and objectives.

2) Are you satisfied with the current job?

YES NO

25 5
NO, 17%

YES, 83%

-Majority of the employees are satisfied with their current job

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3) Do you also get non-financial incentives?

YES NO

20 10
YES 67%

NO 33%

-67% of the employees feel that they get non-financial incentives too.

4) Do the financial and non-financial incentives influence you to work more?

YES NO

19 11

NO 36%

YES 64%

-64% of the employees get influenced to work more through the incentives they receive.

5) Do you often get exhausted in between your working hours?

YES NO

18 12

NO 33% YES 67%

- Majority of the employees get exhausted between their working hours. 29 | P a g e

6) Safety and security is ensured in the organization.

AGREE DISAGREE CANT SAY

15 10 5
DISAGREE 33%

CAN'T SAY 17%

AGREE 50%

- 50% employees feel that safety and security is ensured in the organization and 33% disagree to it

7) Do you feel determined and enthusiastic to work more after receiving your salary? ALWAYS OFTEN RARELY NEVER 12 10 6 2
RARELY, 20%

NEVER, 7% AGREE, 40%

DISAGREE, 33%

- 40% of the employees feel determined and active to work more for the organization after receiving
their pay, whereas 33% disagree to it. 20% rarely feel enthusiastic and 7% never are determined after getting their pay.

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8) Employees are being provided with proper and satisfactory training.

AGREE DISAGREE CANT SAY

20 7 3

CAN'T SAY 10% DISAGREE 23% AGREE 67%

- Majority of the employees find that they are being provided with proper and satisfactory training.

9) How often do you expect remunerations?

ALWAYS OFTEN RARELY NEVER

8 17 5 0

RARELY 17%

NEVER 0%

ALWAYS 27%

OFTEN 56%

- 56% of the employees often expect to get the remunerations whereas 17% rarely want the same.

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10) Does the management give you flexible working hours?

YES NO

26 4

NO 13%

YES 87%

- 87% employees feel that they get flexible working hours, rest deny to it.
11) Are you satisfied with the remunerations you receive?

YES NO

22 8

NO, 27%

YES, 73%

- 73% of the employees are satisfied with the remunerations they get whereas the rest are not.

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12) Does the management involve you in the decision making which are connected with your department?

YES NO OCCASIONALLY

16 9 5

OCCASIONALLY, 17%

YES, 53% NO, 30%

- 53% employees think that they are been involved in the decision making process of the organization. 30% are against it and 17% feel that it happens with them occasionally.

13) Which type of incentives motivates you more?

FINANCIAL INCENTIVES NON-FINANCIAL INCENTIVES BOTH

23 3 4

BOTH, 13% NON-FINANCIAL, 10%

FINANCIAL, 77%

Majority (77%) of the employees are motivated more by financial incentives whereas 10% and 13% are motivated by non-financial and both financial and non-financial respectively.

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14) Does the management often force you to work over-time?

YES NO OCCASIONALLY

8 11 11

OCCASIONALLY

YES, 26%

NO, 37%

- 37% of the employees are against the statement that they are being forced by the organization to work over-time.

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TESTING OF HYPOTHESIS
Question- Do the financial and non-financial incentives influence the employees of Mercedes Benz India Pvt. Ltd. to work more?

Serial Number A B

Opinion YES NO TOTAL

No. of Respondents Observed value 19 11 30

Expected value 15 15 30

Formulation of H0 and Ha: H0- Financial and non-financial incentives influence the employees of Mercedes Benz India Pvt. Ltd. to work more. Ha- Financial and non-financial incentives do not influence the employees of Mercedes Benz India Pvt. Ltd. to work more.

Calculations: OBSERVED VALUE( O) 19 11 2= 2.14

EXPECTED VALUE( E) 15 15

O-E 4 -4

(O-E)2 16 16

(O-E)2/ E 1.07 1.07 2.14

Degree of freedom= Number of categories- 1= 2-1=1 Calculated value of 2= 2.14 The Table Value (TV) of x2 for 1 degree of freedom at 5% level of significance is 3.84. Since calculated value < table value Therefore accept the null hypothesis i.e Financial and non-financial incentives influence the employees of Mercedes Benz India Pvt. Ltd. to work more.

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MAJOR FINDINGS
83% of the Employees are completely satisfied with their current job.

Financial incentives play the most important role in motivating the employees.

Employees are provided with both financial and non-financial incentives

73% of the employees are satisfied with the remunerations they receive, which is quite well.

The organization employs only male workers and no female personnel.

Employees are also provided with satisfactory training.

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SUGGESTIONS
During the process of project work and various discussions with employees of the company, following suggestions were brought out

Few employees suggested that some incentives should be linked with the monthly net sale. A small percentage of net sale should flow towards the incentives to its employees

An employee suggested that once or twice in a year, a family get together or picnic should be organized by the management for the families.

Few were of the opinion that flag hosting should take place on the National holidays like Republic Day and Independence Day to commemorate these important days in the history of India.

Few employees urged their fellow employees not to use tobacco, cigarettes and gutkhas during the duty hours. They also urged them to keep the working area clean.

Few employees suggested for an extensive tree plantation on the empty land of the factory for a better and pollution free atmosphere in and around workplace.

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LIMITATIONS
The respondents may be biased

Time was the major constraint

Hesitation in giving response

Maximum respondents are satisfied with the safety measures provided by the company.

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CONCLUSION
The research conducted under the topic Impact on Productivity by the Incentives at M/s Mercedes Benz India Pvt. Ltd. reveals that most of the employees are satisfied with their current job and get highly motivated by the financial Incentives. The finding of the project represents that most of the employees are somehow satisfied with the present scenario of the organization.

The company provides their employees with sufficient training with both financial and nonfinancial incentives with which it enjoys high productivity. The job they are providing to their employees helps them to increase their creativity and innovations.

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BIBLIOGRAPHY
Employee Benefits- Burton. T Beam Dearbon Trade, 2001

Human Resource Management- Dessler Print House India, 2009

Organizational Behaviour- Seema Sanghi Print House India, 2007

Quantitative Techniques- C.R Kothari New Age International Publishers , 2nd Edition

Research Methods for Business Students- Mark Saunders, Philiph Lewis, Adrian Thornhill Pearson Publications, 2007

www.google.com www.businessmanagement.com

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ANNEXURE

Questionnaire

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INCENTIVES AND THEIR IMPACT ON PRODUCTIVITY

Respected Sir/Madam, As a part of our project we, the students of ISB&M would like to gather some information from you which will help us in an in-depth study of our project. Wed be obliged if you co-operate with us in filling the questionnaire. Since the questionnaire is being used for academic purpose, the information gathered will be strictly confidential. Thank You!

Questionnaire
Name: __________________________ Age: ___________________________ Designation: _____________________

Tick the Option:

1) Are you well aware of the goals and objectives of the organization? Yes No

2) Are you satisfied with the current job? Yes No

3) Do you also get non-financial incentives? Yes No

4) Do the financial and non-financial incentives influence you to work more? 42 | P a g e

Yes

No

5) Do you often get exhausted in between your working hours? Yes No

6) Safety and security is ensured in the organization. Agree Disagree Cant say

7) Do you feel determined and enthusiastic to work more after receiving your salary? Always Often Rarely Never

8) Employees are been provided with proper and satisfactory training. Agree Disagree Cant say

9) How often do you expect remunerations? Always Often Rarely Never

10) Does the management give you flexible working hours? Yes No

11) Are you satisfied with the remunerations you receive? Yes No

12) Does the management involve you in the decision making which are connected with your department? Yes 43 | P a g e No Occasionally

13) Which type of incentives motivates you more? Financial Incentives Non-Financial Incentives Both

14) Does the management often force you to work over-time? Yes No Occasionally

15) Give your views for the management of your organization. _________________________________________________

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