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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i

20Mysore.

INTRODUCTION

This project is an attempt to give a comparison between Maruti Suzuki Swift and Hyundai i20. It
aims to know the marketing strategies, performance analysis and consumer perception regarding
these cars along with factors which influence their choice.

As the number of middle and upper middle class families increasing in India, is on the rise
with demand for hatchback or luxury small cars is in India. Maruti Suzuki offers its
customers economical & budget cars for its customers & Hyundai offers relatively high
luxury in its vehicles and a highly efficient service network to back up its sales team.
This comparative study covers Marutis & Hyundais history that dates back over many years.
It also focuses on Marutis & Hyundais presence in India and its impact in India as compared
to that of other similar segments. A questionnaire has been devised to find out what makes
respondents to buy either of the two cars and inferences have been derived from the data
collected. Finally based on the above findings and report suggestions conclusions have been
drawn what parameters makes people to buy out of the two cars.

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.

INDUSTRY PROFILE
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 Indias 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 by
unfavorable 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.
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 players radar. Indian automobile industry is also fast becoming an outsourcing

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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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 worlds 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.

ORIGIN 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 worlds first accident.

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. He to
develop the worlds 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.
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 twocylinder 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 Indians dream car may not be the design Honda or the stately limousine, but he
sure can dream, and afford, the Maruti now.

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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It was in 1898 that the first motorcar rode down Indias 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.
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.

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.

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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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 to
delicense 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 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.

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Automobile industry is one of the fastest growing Industries in India, Currently India is
ranked as:

6th in Commercial and Passenger vehicle manufacturing.


Asias 3rd largest exporter of Passenger cars.
One of the fastest growing market
One of the highest contributors in Indian GDP.
The Indian auto industry grew at 13 per cent in last five years.

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:

(Source: SIAM - Society for Indian Automobile Manufacturers)

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Passenger Vehicles

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share
while the Challenger Hyundai is far behind it.

SWOT ANALYSIS OF THE AUTOMOBILE INDUSTRY


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STRENGTHS
1. Low labor cost advantage
2. Government subsidies for manufacturing plants
3. Strong designing skills etc.

WEAKNESS
1.
2.
3.
4.
5.

Low productivity of labor.


High interest and overheads costs make the production less competitive
Different forms of taxes increase the overall cost of production
Low investment in R&D.
Less Infrastructural development.

OPPORTUNITIES
1.
2.
3.
4.
5.

Commercial vehicles: as Supreme Court ban on overloading.


Rapidly growing mining and construction activity.
Reduction in excise duties.
Continuous increasing rural demand.
Increase in the per capita income of people.

THREATS
1. A continuous increase in input costs
2. Increasing interest rates
3. High competition

REASON FOR HIGH GROWTH

The Indian automobile industrys growth is driven by various factors which include:

Low cost Labor

Large local
demand

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Reason for High


growth of Automobile
Industry in India

Economic
Growth

Infrastructure
Development

Rural Economy

Disposable
Income

PROBLEMS OF AUTOMOBILE INDUSTRY

Rising fuel
prices

Inflationary trends

Current problems of
Automobile Industry

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Swelling interest
rates

Lower growth
rate

Few Salient features of Automobile industry

Supply: Overall Indian Automobile industry has a marginal excess capacity.


Demand: Its 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.
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Bargaining power of suppliers: 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.

COMPANY PROFILE
Maruti Suzuki

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In early 1980s Indian Govt decided to produce a small car, which would be within buying
reach of Indian middle class. The obvious place to shop for technology was Japan, which had
developed world class capabilities in small cars by that time. It was not Toyota, or Nissan, or
Honda ,three largest player in Japan, but Suzuki, a much smaller company with strong
capabilities in making small cars. Suzuki grabbed the opportunity with both hands and
formed a joint venture with govt. called Maruti Udyog.
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the
leader of the Indian car market for about two decades. Its manufacturing plant, located some
25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum,
with a capability to produce about half a million vehicles.
Maruti rolled out its 1st car, Maruti 800 with 800cc engine in December 1983. This model
targeted at masses and was launched as Peoples car. In early 2003, Maruti Udyog, a joint
venture between Suzuki and Indian Govt. dominated Indias automobile market with 54%
market share and with annual production capacity of 5lac cars. The company dominated
Indian Small car market with a share of 100% in A seg, 36% in B seg and 86% overall.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car
Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car
Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor
Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen and
Esteem, completely designed and styled in-house. Maruti's contribution as the engine of
growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire
generation of Indian middle class, is widely acknowledged. Its emotional connect with the
customer continues
Maruti tops customer satisfaction again for 8th year in a row according to the J.D. Power Asia
Pacific. India Customer Satisfaction Index Study. The company has also ranked highest in
India Sales Satisfaction Study.

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In keeping with its leadership position, Maruti supports safe driving and traffic management
through mass media messages and a state-of-the art driving training and research institute that
it manages for the Delhi Government.
The company's service businesses including sale and purchase of pre owned cars (TrueValue),
lease and fleet management service for corporate (N2N), Maruti Insurance and Maruti
Finance are now fully operational.

Current Cars in Maruti Suzuki

Maruti Suzuki Alto K10

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Maruti Suzuki Alto 800

Maruti Suzuki Celerio

Maruti Suzuki Ciaz

Maruti Suzuki Ertiga

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Maruti Suzuki Ritz

Maruti Suzuki Stingray

Maruti Suzuki WagonR

Maruti Suzuki Swift

Hyundai Motors

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Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest car manufacturer and the largest passenger
car exporter from India. HMIL presently markets 54 variants of passenger cars across
segments. The Santro in the B segment, the Eon, i10 and the Premium hatchback i20 in the
B+ segment, the Accent and the Verna in the C segment, the Sonata and elentra in the E
segment and the santafe in the SUV segment.
Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2012,
an increase of 49.6 percent over CY 2011. In the domestic market it clocked a growth of 22.4
percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports
accounting for 243,931 units in 2012.
HMILs manufacturing plant is located near Chennai which has advanced production quality
and testing capabilities in the country. Inorder to provide the Indian customer with global
technology, HMIL started its second plant in February 2008 which produces an additional
300,000 units per annum, raising HMIL's total production capacity to 600,000 units per
annum. Apart from expansion of production capacity, HMIL currently has 260 strong dealer
network across India.
The production management processes at Hyundai Motor India are overlaid with an
organization-wide implementation of manufacturing best practices like Just-in-time inventory
management, Kaizen, TPM and TQM, that help us in making the world's best cars, right here
in India.

Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown into the
Hyundai-Kia Automotive Group which was ranked as the worlds fifth-largest automaker in
2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over
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75,000 people worldwide, Hyundai vehicles are sold in 193 countries through some 6,000
dealerships and showrooms.
Hyundai Motor Company, S.Korea, the parent of HMI, has been doing considerable work on
sustainable Environment Management . The company has a well defined framework in place
for developing products that reduce pollutant emissions and processes for preservation of
natural resources and energy along all the stages of the product lifecycle from production,
sales, use to disposal and has been awarded the ISO 14001 certification for all its three major
plants in Ulsan, Asan and Jeonju in S.Korea.

Current Cars in Hyundai

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Hyundai Sonata

Hyundai Verna Fluidic

Hyundai Eon

Hyundai Grand i10

Hyundai i10
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Hyundai i20 Active

Hyundai i20 Elite

Hyundai Santa Fe

Hyundai Xcent

PRODUCT PROFILE

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Maruti Suzuki SWIFT

In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as
Maruti Swift. In the Indian auto market Swift is available with seven variants four with petrol
and three with diesel engine option. The petrol version of Maruti Swift is powered by 1.2L Kseries engine. The 1.2L, K-series petrol engine present in Maruti Swift is highly fuel efficient
with the availability of 16 Valve light weight DOHC engine that reduces friction and
improves durability and fuel economy to the best in town. Maruti Swift is endowed with 5
Speed Manual Transmission Gearbox. This gearbox is cable type gearshift which is of great
help at the time of shifting of gear. Maruti Swifts powerful engine with the emission of BS
IV and is very fuel efficient and a very good performer that offers an impressive mileage of
14.4 kmpl in the city roads and 18.1 kmpl on the highways.
However, the diesel version of Maruti Swift is packed with 1.3L, DDiS engine with a
displacement of 1248cc. The 1.3L diesel engine is packed with turbocharger and intercooler
combination that offers efficient combustion and clear emissions. The diesel engine is
endowed with 5 step multi injection common rail system that offers better fuel combustion
and hereby gives good performance and makes the car economical to run. This compact
diesel engine is incredibly fuel efficient and offers a mileage of 16.9 kmpl in the city roads
and 19.6 kmpl on the highways.

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Statistics
BODY TYPE
Body Type

Hatchback

Number of Doors

ENGINE
Capacity

1197cc

Number of Cylinders

Number of Valves

16

Bore x Stroke

73.0mm x 71.5mm

Compression Ratio

10.1:1

Maximum Power

85ps @ 6,000rpm

Maximum Torque

113Nm @ 4,500rpm

Fuel Distribution

Multipoint injection

Emissions

BS IV

TRANSMISSION
Type

Gear Ratios

Five-speed manual, with


synchromesh in all gears, one
reverse
1st

3.54
5

4th

0.91
4

2n
d

1.90
4

5th

0.75
7

3rd

1.28
0

Revers
e

3.27
2

DIMENSIONS
Overall Length

3,760mm

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Overall Width

1,690mm

Overall Height

1,530mm

Wheelbase

2,390mm

Track

1,470mm
1,480mm

Front
Rear

Ground Clearance

170mm

Minimum Turning radius

4.7 metres

Luggage Capacity

232 litres (with seatback raised)


368 litres (with seatback folded)

CHASSIS
Steering

Rack and pinion, power assisted

Brakes

Front
Rear

Ventilated discs
Drums

Suspension

Front
Rear

MacPherson strut and coil spring


Torsion beam and coil spring

TYRES

165/80 R14 / 185/70 R14 (tubeless)

WEIGHTS
Kerb Weight

980 kgs [LXi] / 1,000 kgs [VXi] /


1,010 kgs [ZXi]

Gross Vehicle Weight

1,415 kgs

FUEL TANK CAPACITY

43 litres

The Generation V Swift debuted at the Paris Auto Salon in September 2004. This generation
of the Swift marked a significant departure with the previous Cultus-based models, with
Suzuki re-designing the vehicle as less of a "low price alternative" subcompact and more of a
"sporty" subcompact. The Swift's design and driving characteristics focused on the European
market with its chassis refined through a road-testing program across Europe.

Indian Suzuki Swift


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Indian Engineers were called to Japan to help Suzuki design this generation of Swift.
Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol
engines, the new Swift is Suzuki's new "global car", produced in Hungary, India, Japan,
Pakistan

and

by

Chang'an

in

China.

In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or
1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive
version. The design of the new Swift was previewed on the Concept S and Concept S2
concept

cars

at

auto

shows,

in

the

years

leading

up

to

its

launch.

In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol
engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with an
automated

manual

gearbox

or

with

four-wheel

drive.

The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it
a "thoroughly impressive all-rounder". The Generation IV Swift has received a four stars out
of five rating in the EuroNCAP crash tests.
The Suzuki Swift gets a mid-life refresh, the hatchback was launched in 2011. The Swift has
been a popular hatchback ever since the first generation of the car was launched in India in
2004, it changed the segment forever. The design inside-out, interior quality, ride and
handling and peppy-and-efficient engines have made the Swift a favourite. The refreshed
Swift gets minor styling changes outside, new paint options, minute design changes inside,
added equipment and a new variant. The biggest change though is the fact that both the petrol
and diesel engines powering the Swift are now more economical than before, by around 10
per cent. The engines have also been re-tuned for better drivability.
The Swift face-lift gets minor styling changes on the outside. The car retains the peeled-back
headlamps, heavily raked front windscreen, floating roof, short rear and the sculpted body. At
the front changes include a new honeycomb grille along with a new bumper with a larger airdam. Also added are silver L-shaped insert beside the front fog lamps which give the illusion
that the car has LED daytime running lamps. The front door handles on the top-end variants
get request sensors for the key-less entry system, the ORVMs covers are integrated with side
indicators. The top-end variants get new alloy-wheels while the full-wheel covers for the
other variants have been redesigned too. Apart from that the design remains the same as that

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of the earlier model. The rear is compact, features tail-lamps which mirror the front, a short
hatch and a sculpted bumper.
Inside, the Swift gets the same interiors as before. The interiors still get the all-black theme
with shiny-black and matte-silver inserts. The three-spoke steering wheel is good to look at
and good to hold, higher variants get steering mounted controls. The new Swift also gets
steering-column mounted call controls. Top-end variants also get key-less entry-and-go,
which adds a start/stop button along with request sensors on the front door handles. The
ORVMs are now electrically foldable too, they were electrically adjustable earlier. The
multimedia system now gets Bluetooth connectivity, the design of the interface remains the
same. The A/C controls also remain the same as before. Rear seats are now foldable in a
60:40 split, which adds to the practicality of the car.
The Maruti Swift face-lift comes with a choice of either a 1.2 litre naturally aspirated four
cylinder petrol engine or a 1.3 litre turbocharged and intercooled four cylinder diesel engine.
Both the engines are mated to a 5-speed manual-transmission. The engines are fuel efficient
units and offer adequate performance as well.
The Maruti Suzuki Swift was always a popular premium hatchback, these additions make it
even more appealing.

MARKETING STRATEGIES
Objectives
The main objective of Maruti Suzuki Swift is to conquer the market of hatchback car
segments. Launched in 2005, Maruti Suzuki aimed to make Swift the leader of top quality
hatchback cars, and since then no car of its competitors has been able to tackle Swifts sales.
The MS Swifts share is more than 15% in the market, and is currently the best selling Car of
its segment in India.

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Target Markets
Swift targets the domestic market first and it will not face any capacity constraint here. A
sizeable number of cars have been manufactured at Maruti plant in Gurgaon and deliveries
will commenced by the first week of June 2005," Arvind Saxena, chief general manager,
sales, MSL said. "Over 85 per cent of the car has been indigenized. Swift is based on the
latest European design and styling, built with Japanese quality and precision, utilizing Indian
engineering capability. The car has an universal appeal," he added. At present, MSL has an
installed capacity of 3,50,000 units per annum and the company manufacturers around
6,00,000 vehicles per annum on a two-shift basis. However, the company officials did not
divulge the exact number of Swift cars to be manufactured in India. According to industry
estimates, around 50,000 Swifts are expected to be sold in India in the first year. Currently,
being launched across the globe, Swift has received rave reviews internationally for its path
breaking looks and styling and superior safety features. It has become one of the top 20 bestselling models in Japan since its launch there in November 2004.

Positioning
Using product differentiation, Maruti Suzuki Swift will be placed as the most comfortable,
convenient, value added hatchback model for above target market used. The marketing
strategy will be focused on promoting the car as the best hatchback car model for the next
generation.

Strategies Product
The Maruti Suzuki Swift is fully loaded and comes with a warranty of up to 3 years; it can
also be extended up to 5 years maximum. Also a higher model, Maruti Swift DZire has been
introduced in 2010, as a replacement for Maruti Esteem, which has completed its run.

Price:
Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki
Swift car. After launching cars for the masses since so many years, Indias largest automobile
manufacturer is now targeting the premium segment with their latest model from the Suzukis
stable. The analysts predict the pricing of this premium hatchback to start from Rs. 4 lakh.
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This price range would practically rip apart Hyundais offering in i20, which is priced at a much
higher tag of Rs. 4.5 lakh. Both the companies are known for their value based offerings and
Maruti with their extensive service network and brand reputation for making reliable cars should
get the customers nod over their competition. The official pricing however is still not out.
However, the company is said to be studying the prospects of launching the base model at the 4lakh price tag. There is another advantage in doing so considering in the capital city of Delhi NCR
road tax on the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a price higher than 4
lakh have to pay a 4% road tax.
Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. And if
they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai
Getz, they would quite likely force the competition to rethink their strategy.

Distribution
The Stockiest will represent 4 to 5 districts in a State.
The Dealer will represent a district or main City.
The Sub-Dealer shall represent a particular area or taluka.
The booking agents will be individuals working on freelance basis.

Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agency will also coordinate public relation efforts to build Maruti Suzuki brand & support the differentiation
message. To attract market attention & encourage purchasing, we will offer a limited time,
registration & insurance. To attract, retain & motivate channel partners for a push strategy, we
will use trade sales promotions and personal selling to channel partner.

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Advertisements
Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts to the
people about its products by marketing through advertisement in television, radio, newspaper,
etc.
Through radios they try to promote their product by organizing quiz contests and the person
who wins are offered special discounts, gift vouchers, coupons, etc.
Through television they promote their vehicle by showing the utility value, its comfort level.

After Sales Service


Kya yahan Maruti Service Station hai Availability of service stations even in the
remotest place in the country.

Display
If you visit any of the Maruti Dealers showroom what you will notice is one thing very
similar, that is the display. They display only 2-3 cars in the showroom. Well this is the
strategy to make people concentrate on only few choices otherwise they might get distract
and get confused. Here Maruti wins one customer.

Tie up with many banks


To promote its bottom line growth, Maruti launched Maruti Finance in Jan 02.
Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and
Maruti countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan.
Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI Ltd, Kotak Mahindra
Bank, Standard Chartered Bank etc.

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Exchange offers

Maruti has also placed its step and progress by marketing through exchange offers. In this it
makes possible to leave and get it replaced for a new one with barely some amount. This is
one of the greatest ways to attract more and more customers and also makes possible to
increase sales.

SBI Maruti Car Loans


The countrys largest bank and the largest car maker have joined hands to make affordable
car finance available to more and more people across the country. The mega alliance makes
car loans available at lower interest rates to a wider section of people, with transparent terms
and conditions.

The unbeatable advantages of SBI Maruti car loans:-Two market leaders in their respective industries with trusted brand names.
-Low interest rates
-No processing fees or hidden costs to ensure transparency.
-Car loans available for diverse categories of customers including govt. employees and
agriculturist.

TIMELINE OF GENERATIONS
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First generation (20002004)


The first generation Swift was introduced in 2000 as a replacement for the Suzuki Cultus.
Outside of Japan, the Suzuki Ignis name was widely used. The Ignis was originally
manufactured as a five-door hatchback, powered by
a new generation of Suzuki straight-four gasoline
engines, the M family. Displacement ranged from
1.3 to 1.5 L, and the standard transmission was the
usual five-speed manual, with an optional fourspeed automatic gearbox. The vehicle is available
with either front or four-wheel drive, although the

Maruti Swift in Production

4WD/auto combination was limited to the Japanese and Australian markets.

A shorter three-door version, with redesigned bumpers, was introduced in 2003, named Swift
Sport in Japan and Ignis Sport in Europe. The Ignis Sport used the same 1.5 L as the regular
Ignis, but with power increased. The Swift/Ignis Sport went out of production in 2005.
In 2001, General Motors introduced the Chevrolet Cruzea crossover SUV based on the
Swift, retaining the original car's basic dimensions and power plants. The Cruze was restyled,
adopting a crossover look between a tall hatchback and a sport utility vehicle, and the threedoor body was dropped. The "Chevrolet Cruze" commercial designation was used in most of
south Asia, while in Australia the car was sold by as the Holden Cruze from 2002 to 2006.
Suzuki in Europe introduced the Cruze as an update of the Ignis in 2003, although extended
by roughly 150 millimetres (5.9 in) in length, to improve interior room and luggage space.

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This version was manufactured by Suzuki's Hungarian Magyar Suzuki plant specifically for
the European market.
Also in Europe, due to an agreement with Subaru, the car was also sold as the Subaru
Justy (4WD only) from 2003, as happened previously with the previous generation Cultusbased Swift.
The Cruze-based update was never sold in Japan as a Suzuki, only as a Chevrolet. Europe
was the only market to receive the updated car as a Suzuki.

Second generation (20042010)


The second generation Swift debuted at the Paris Auto Salon in September 2004. This
generation of the Swift marked a significant departure with the previous Cultus-based
models, with Suzuki re-designing the vehicle as less of a "low price alternative" subcompact
and more of a "sporty" subcompact.[2] The Swift's design and driving characteristics focused
on the European market with its chassis refined through a road-testing program across
Europe.[3]
Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol
engines,

the

new

Swift

is

Suzuki's

new

"global

car",

produced

in Hungary, India, Japan, Pakistan and by Chang'an in China.


In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or
1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive
version. The design of the new Swift was previewed on the Concept S and Concept S2
concept cars at auto shows, in the years leading up to its launch.
In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol
engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with
an automated manual gearbox or with four-wheel drive.
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it
a "thoroughly impressive all-rounder". The second generation Swift has received four stars
out of five rating in the Euro NCAP crash tests. [4] It also was awarded 2006Semperit Irish Car
of the Year in Ireland.

Since its global launch in 2005,


which was kicked off with a
marketing campaign fronted by
the
Ronaldo in
countries,

footballer Cristiano
many
the

European
Swift

has

recorded above forecast sales in


most markets. In Japan, sales
figures have been twice the
forecast and in many European

Maruti's team of 25 engineers who went to Japan to


co-develop the Swift

markets the model has been a runaway success. In Denmark, the Gen IV Swift has been
consistently in Top 3 for more than 2 years and was the car with the highest sales figures in
2006. In India, rapid sales of the new Swift model contributed to the 64% rise in Q1 profits
for Maruti Suzuki. The Swift will be reintroduced to the U.S. market in 2010 to replace
the Suzuki Reno

Third generation (2011-till


present)
A new model for Maruti Suzuki Swift is
under development in India, and is going
through various tests, It is planned to be
launched in India by the first phase of
2011. This model is better than the older
one is various prospects. he changes on

A look of new Maruti Suzuki Swift


awaiting its launch in 2011.

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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the exterior are quite subtle with no major changes reflecting from the spy shots. Interiors are
under cover and customers can keep guessing until the official pictures are revealed.
However, an increased wheelbase promises more space in the interiors. The new Maruti
Suzuki Swift looks to be powered by the latest K12 1.2L engine that powers current model
and Maruti Ritz. The diesel variant can be sourced from Fiat which will be the 1.3L Multijet
diesel engine, according to disclosed details right now. The new Swift has been codenamed as
YP8 which is being developed to compete in the Indian market with new entrants
like Chevrolet Beat, Ford Figo, Volkswagen Polo, Nissan Micra and the upcoming Toyota
Etios Liva and Honda Brio.

SWOT ANALYSIS
Strengths
Brand Image.
Reliable and cheap.
Established brand in Indian market.
Great service and nationwide penetration.
Experience in Indian market.
Very old player in Indian market.
Established distribution & after sales networks.

Weaknesses
Diseconomies to scale
No online presence
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Not diversified

Opportunities
Acquisitions
Innovation
Online Product and services expansion
Takeovers
Targeting Higher Middle Class requirements

Threats
Competition
Cheaper technology
External changes (government, politics, taxes, etc)
Lower cost competitors or imports
Price wars
Product substitution.

Hyundai i-20

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The Hyundai i20 was designed in a Hyundai Designing Centre in Germany by a BMW
designer: Thomas Buerkle. The Hyundai i20 is a supermini/subcompact car, made its debut
at the Paris Motor Show in October 2008 and went on sale in December 2008 in India to fit
between the i10 and i30. It is a Front wheel drive car. The car is mostly European because of
its design and designer. Three and five door versions are available (Both have different sleek
window shapes). The i20 replaces the Getz in most markets but in the UK and India, the Getz
will still be available for the time being. The i20 is assembled in Turkey for the European
market[1] and in India for sale in Asia and Oceania. The i20 has recently replaced the Getz in
Australia.
The i20 is not sold in Korea, as the similar, Korea-built (Which is also known as the Hyundai
Getz in the UK) sold there.
In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine
developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 Nm (84 lbft) of peak torque
at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of power at 5500
rpm and 139 Nm (103 lbft) at 4200 rpm i20 CRDi the diesel i20 comes with a powerful oil burner
generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 Nm (165 lbft) of peak
torque between 17502750 rpm.

Statistics
Overview
Model

i20

Body Type

Hatchback

Number Of Doors

5
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Seating Capacity

Fuel Capacity

45

Dimensions:
Length

3940 mm

Width

1710 mm

Height

1505 mm

Wheelbase

2525 mm

Ground Clearance

N/A

Minimum
Radius

N/A

Turning

Weight:
Kerb Weight

1066 kg

Engine:
Type

1.4-L diesel 1.2L petrol

Number Of Cylinders

Displacement

N/A

Transmission

5 Speed, Manual

Max. Power

90 bhp Diesel 58 kW - petrol

Max. Torque

N/A

Suspension:
Front Suspension

Mc Pherson Strut with Coil Spring

Rear Suspension

Coupled Torsion Beam Axle with Coil Spring

Brake:
Front

Disc

Rear

Drum

Steering Type

Rack & Pinion, Power Assisted

Tyre Size

175/70 R14
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MARKETING STRATEGIES
Advertisements
Hyundai had used Bollywood star Sharukh Khan as Brand Ambassador for promoting their
car. Through this they tried to attract the customers.

To promote their product they organized quiz contests on radio and the person who wins was
offered special discounts, gift vouchers, coupons, etc.
They also advertise in Newspapers. In this companies advertise about the car in various
newspapers and they give detail explanation about the feature of the cars, keeping customers
requirement. They also provide various dealers addresses and contact numbers for reference.

Free checkups

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Hyundai arranges free checkups from time to time in which they check for any problem and
advice to visit the nearest service center for servicing. This helps in maintaining good
relationship with customers and tries to keep good image in market.

Exchange offers

As Hyundai deals in pre-owned cars also. They offer exchange offers to customers. And by
paying adjusted amount customer can get brand new car in exchange of old once. Exchange
offer makes customer happy as they dont have to pay full amount also, they get new car also
and their old car gets replaced also with new one.

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Cold callings
In this type of strategies old customers are given a relationship call just to know some other
references. This gives a boost to sales and customers also feel a sense of involvement.
Hyundai gets maximum sale through such type of cold callings only.

Events at Corporate Office and Banks

Hyundai tries to attract customers by conducting camps, events at corporate offices and bank
as most of the customers are of middle-age group and corporate offices are good source for
company to attract such customers.

Display
Hyundai keeps attractive display so that maximum number of people gets noticed. And they
even keep their own accessories related to cars at special accessories counter. For attractive
display they decorate their showroom as well as all the cars which are displayed.

Objectives
First year Objectives: We are aiming for 5% market share of the Indian market through unit
sale volume of 100000.Second year Objectives: We are aiming for 10% market share of the
Indian market. An important objective will be to establish a well-regarded brand name linked
to a meaningful positioning. We will have to invest heavily in marketing to create a
memorable and distinctive brand image projecting innovation, quality and value. We also
must measure awareness and response so we can adjust our marketing efforts if necessary.

Target Markets
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Hyundai i20's marketing strategy is differentiated marketing. Our primary consumer target is
middle to upper income professionals who need true value for their money and comfortable
ride in city conditions. Our secondary consumer target is college students who need style and
speed. Our primary business target is mid sized to large sized corporates that want to help
their managers and employees by providing them a car for ease of transport. Our secondary
business target is entrepreneurs and small business owners who want to provide discounts to
managers buying a new car. Each of the four marketing strategies conveys Hyundai i20's
differentiation to the target marketing segments identified above.

Positioning
Using product differentiation we are positioning the Hyundai i20 as the most versatile,
convenient, value added car model for above target market used. The marketing strategy will
be focused on promoting the car as economic car for the next generation.

Strategies Product
Hyundai i20 is fully loaded and will be sold with 3 year warranty. We will also introduce a
CNG/LPG version of Hyundai i20 in the near future. Also the high end model has an option
of GPS system.

Price
Hyundai i20's base model is at ex-showroom price of 4.5 lakhs. This price reflects a strategy
of
1) Attracting desirable channel partners
2) Taking market share from Maruti.

Distribution
The Stockiest will represent 3 to 4 districts in a State.
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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The Dealer will represent a district or main City.
The Sub-Dealer shall represent a particular area or taluka.
The booking agents will be individuals working on freelance basis.

Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agencies will also
co-ordinate public relation efforts to build Hyundai brand & support the differentiation
message. To attract market attention & encourage purchasing, we will offer a limited time,
registration & insurance. To attract, retain & motivate channel partners for a push strategy, we
will use trade sales promotions and personal selling to channel partner.
Various Marketing Strategies enables a firm to expand business activities for market
reputation, to satisfy human wants , to lead to specialization and efficient performance of
production function climaxing in economic stability.
After liberalization automobile Industry is growing at very high rate and many new
companies have also entered into market. With offering variety of cars in all segments for
everyone. So it is important to know which company is providing us good quality cars at fair
prices and providing better after sales services. And how they are trying to reach customers.
The most obvious objective marketers have for promotional activities is to convince
customers to make a decision that benefits the marketer (of course the marketer believes the
decision will also benefit the customer). For most for-profit marketers this means getting
customers to buy an organizations product and, in most cases, to remain a loyal long-term
customer.

TIMELINE OF
GENERATIONS

First generation (20082011)

Hyundai i20 in
production

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine
developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 Nm (84 lbft) of peak torque
at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of power at 5500
rpm and 139 Nm (103 lbft) at 4200 rpm i20 CRDi the diesel i20 comes with a powerful oil burner
generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 Nm (165 lbft) of peak
torque between 17502750 rpm.

A picture of the 1st generation of Hyundai i20 produced in India


Second gemeration (2012-till present)
A slightly upgraded version of the i20, called the i-Gen i20, went on sale in India in March 2012
onward with tweaked Headlamp, new Front Grill, Tail-lamp and Fog Lamps. It follows the Fluidic
design philosophy with slightly re-tuned engines
The i20 will debut in Europe with a total of seven engine options, all with four
cylinders. Three are petrol, including the recently designed 1248 cc dohc 16 valve
"Kappa" engine, while the rest are diesel engines. Two of the diesel engines are 1396
cc units, one with 75 PS (55 kW; 74 hp) and 220 Nm (160 lbft) and the other a 90 PS
(66 kW; 89 hp ) and 220 Nm (160 lbft) high power unit They are joined by two 1582
cc engines having the same dohc and 16-valve top end architecture but delivering
either 115 PS (85 kW; 113 hp) and 156 Nm (115 lbft) of torque or 128 PS (94 kW;
126 hp) and 157 Nm (116 lbft) of torque.

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Hyundai claims that 115 PS (85 kW; 113 hp) diesel unit can return a class leading
115g/km of CO2 while sipping just one litre of HSD to go 23.25 km/L (65.7 mpg-imp;
54.7 mpg-US) (4.3L/100 km) in the European combined driving cycle. All diesel engines
and 1.2 and 1.4 petrol engines come mated to five-speed manual transmission, there is
an option of a four-speed automatic for some 1.4 petrol engined models, the 1.6 is
mated to a six-speed manual transmission.
Hyundai launched the new i-Gen i20 on March 28th 2012. The new car which was designed
on the lines of Hyundais new Fluidic design language replaced the first generation i20
which was being sold in India. The exterior dimensions of the car are similar to the outgoing
model. The fluidic family design from Hyundai has given the car a fresh new look, doing
away with the more dated design of the old version. With the i20, most of the Hyundai cars
available in India now have the corporate fluidic look.The new i20 is loaded as the top-ofthe-line Asta (O) which comes packed with all the creature comforts that a modern petrolhead needs. A digital read out on the dashboard and in the instrument cluster, a fullyautomatic climate control system and in-car-entertainment with USB, i-pod connectivity.The
new i20s best-in-class wheelbase allows for an airy cabin with ample space for the average
urban family.
When it comes to engines, the i20 has two engine options, the petrol is a 1.2 litre Kappa
petrol engine under its bonnet. The in-line 4-cylinder engine with Dual VTVT puts out 82
bhp of maximum power, for which you need to rev the engine to 6000 rpm while 113 Nm of
torque tops out at 4000 rpm. Being a petrol engine, you do need to rev it up as it lacks lowend grunt. That said, work the smooth shifting 5-speed manual gearbox as well as your right
foot and you will be greeted with a very refined four-pot orchestra emanating of course from
the engine bay. The other petrol is the 1.4litre Gamma with 4-speed automatic transmission
which gives 100 bhp.
The i-Gen i20 with its 1200 cc petrol engine would do 16.1 kmpl as per ARAI specifications,
although in real world condition this is expected to drop by at least 5 kmpl. The car should
return a mileage of 11 kmpl depending upon individual driving styles. The diesel with 1.4l
CRDI gives a mileag of 20 kmpl combined.As far as handling is concerned, the i-Gen i20
isnt the best car to throw around corners at a high rate of speed. The i20 prices start at Rs 4.7
lakh for base petrol to Rs 7.7 lakh for top end petrol. The diesel variant start at rs 6 lakh to Rs
7 lakh for the top diesel. The i20 is an spacious and refined small car.
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RESEARCH DESIGN
Statement of the problem
Consumer choice process is a complex phenomenon. Making a decision to buy a product or
services involves many processes. The literature on consume behavior studies reveals that for
the selection of durable products, especially passenger cars, the customer has to spend much
time to evaluate and choose the desired one based on their need and economic condition. The
marketing strategies followed by the manufacturer and marketer as well as pre-conceived
idea of the buyer also play a vital role in selection of a particular brand and to get more
satisfied. Only a limited number of attempts have been made to study the impact of brand
preference factors on customer behavior. Based on these basic questions, the researcher has
developed an interest to do a comparative analysis between the two mid-size segment cars in
India viz.., Maruti Swift & Hyundai i-20

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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Objectives of the Study


1.
2.
3.
4.

To understand the performance of Swift and i20 respectively.


To identify the perception of customers regarding these cars.
To determine the factors the choice of customers regarding cars.
To analyze the level of satisfaction of respective car holders.

Scope of the study


1. Examines and identifies key information and issues about 'MARUTI UDYOG LTD' &
HYUNDAI MOTORS for business intelligence requirements
2. Study and presents the company's strengths, weaknesses, opportunities (growth
potential) and threats (competition). Strategic and operational business info is accurately
stated.
3. The profile also covers info on business processes, company history, major products
and services, prospects, key challengers.
4. My project was based on the Comparative Study of Swift vs. i20 and data was taken
in Mysore city only.

Methodology of the Study


The study is based prominently on primary data with a supplementary secondary data.
The primary data is collected from various sources like Questionnaire and Interview Method. The
targets for the primary data were the customers using the various models of passenger cars. The
secondary data was collected from companys report, companys broachers & websites have been
collected.

Sample Size
The size of the sample for study was 100 respondents from Mysore city of Karnataka. They were
selected using convenient sampling technique. As this is a comparative study between the two cars
100 respondents were equally divided for the two cars so as to increase the accuracy.

Tools of Analysis

The statistical tool used for the purpose of the analysis of this study is simple percentage
technique and ranking techniques. After the collection of data through the questionnaire,

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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editing was done carefully. Based on the responses of the samples, tables were prepared. The
data collected were analyzed and interpreted with the help of tables & figures.

Sampling Technique
Convenience Sampling Technique is used where it is both descriptive and Exploratory in
nature

Limitations of the Study


1. Research work was carried out in Mysore only the finding may not be
applicable to the other parts of the country because of social and cultural
differences.
2. The sample was collected using connivance-sampling techniques. As such result it may not
give an exact representation of the population, it is also very small which represent my
research on consumer behavior.

3. Shortage of time is also reason for incomprehensiveness.


4. The views of the people are biased therefore it doesnt reflect true picture.
5. I had only found the upper-middle class family to fill up the questionnaire, but generally,
an average middle class family was required for the study.

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REVIEW OF LITERATURE

Satya Sundaram (2008), analyzed how the competition makes the automobile manufacturer
to launch at least one new model or a variant of the model every year. This survey also
pointed out that diesel cars are becoming popular in India and the announcement of
reductions in excise duties by the government has helped to some extent to boost the demand.
Clement Sudhakar and Venkatapathy (2009), studied the influence of peer group in the
purchase of car with reference to Coimbatore District. It was also found that the influence of
friends is higher for the purchase of small sized and midsized cars.
Brown et al (2010), analyzed the consumers attitude towards European, Japanese and the
US cars. The countryoforigin plays a significant role in the consumers behavior. The
brand name, lower price and distributors reputation completely have a significant impact on
the sale of passengers car.
Manish Kumar Srivastava, A.K. Tiwari [2011], studies the consumer behavior for A3
segment vehicles such as Honda City and SX4 in a particular region Jaipur. Data collected
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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from 100 respondents 50 each from Honda City and Maruti SX4. Respondents were
considered from various backgrounds like Gender, Occupation, Income class. Also customer
purchase parameters considered for study are Price, Safety, Comfort, Power & Pickup,
Mileage, Max Speed, Styling, After Sales Service, Brand Name and Spare Parts Cost. Based
on above parameters and analysis made in this it revealed that, while purchasing A3 segment
car Customer give much importance to Safty, Brand Name and seating and driving comfort.
Also word of mouth publicity and advertisements in car magazines are more effective
communication medium for promotion of Cars.
K.Vidyavathi [2014], the study throws light on various aspects that the manufactures should
concentrate on to attract the prospective buyers. The demand for the small Automobile
segment is increasing because of the growing number of nuclear families as well as parking
problems. Hence the manufactures should find out the needs, wants, tastes and preferences of
consumers in order to design the products. Also fuel economy and driving comfort are the
most important parameters followed by availability of spares and their price.
Samin Rezvani, Goodarz Javadian Dehkordi, Muhammad Sabbir Rahman [2014], this
paper reviews the country of origin and different variables that influence consumer purchase
intention also highlight the relationship of variables and customer purchase intention. Study
demonstrate that people care about which country products come from and where they are
made and consider these factors when evaluating the quality of product. Stereotypes of
country and the preferences of customers, influence the purpose intention. Political system,
culture and the economy of the country can be a cause of sensitivity to people. There are
many factors that have an impact on consumer purchase intention. Research and
methodologies have shown that even when consumers can evaluate all the intrinsic product
characteristics by expressing the product, the effect of extrinsic cues has more influence on
consumer product evaluation. Country of origin is one of the extrinsic cues; in addition, there
is no doubt that country of origin has considerable influence on the purchase intention
process.
However, the present study differs from the above, in that the buyer behavior in Mysore is
sought to be analyzed here. The scope and the area of the study are unique in nature.

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THEORATICAL BACKGROUND
The term customer refers to a person who buys goods or service for his personal or household
use and not for resale. Attitude is defined as a mental, emotional or rational predisposition
with regard to a fact, state, person or an object.

THE IMPORTANCE OF CUSTOMER CARE


Customer care is an important of successful selling, because keeping an existing customer
contended is generally much easier, takes less time and involves less expense than finding
new buyers. The reason for this are that it takes less time to find new prospective customers,
and having found them the sales person needs to establish credibility before making a sale with
existing customers this has already been accomplished. Even though many businessmen and
women readily accept this idea, it is still remarkable how many companies gain a reputation for
bad service.

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The critical feature is that customers must perceive that they are getting good service.
Companies can only know if they are succeeding by auditing their customer responses. The
starting point is to identify precisely the consumer requirements, then to attempt to measure how
effectively these requirements are being satisfied. Work then needs to be undertaken to improve
the degree of satisfaction.
Majority of the people will agree that Customer Service is one of the most important parts of
your company's overall strategy to conducting business. Without customers you really don't
have a business. If this is the case, why is it mostly everyone as consumers can easily
mention examples of poor customer service in their daily lives? Every company either has or
thinks it has good customer service. However, if certain steps are not taken to ensure this, the
reality of their situation is often far worse than their current perceptions.
In any successful business or organization, the commitment to customer service always
begins at the top, the company's leaders must buy into the fact that they not only need to
meet their customer's expectations, and they must strive to exceed them. They must develop
a company culture that understands, embraces and executes this concept.

In today's world, business competition is tougher than ever. If you can't provide goods or
services when somebody wants or needs them, there are often four or five other companies
immediately ready to fill this void. You only get one chance to make a good first impression.
If the company's leaders do not accept this fact, or are not willing to provide the necessary
resources to meet their customer's needs, they will soon find themselves scrambling for
business.
Proper training is one way to develop a company culture that embraces excellent customer
service. Employees must understand implicitly what is expected of them when interacting
with customers. Is there an established, uniform way to answer the phone? Are there is a set
of procedures in place for instances when a customer has a question or problem? Is there an
established chain of command to make sure that issues are handled in a timely fashion?
And most importantly is everyone trained to carry out these company procedures? How you
handle the problem is far more important than the problem itself. A customer must always be
made to feel as though their best interests are being given serious consideration, even when

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you can't give in to their demands. It is far better to say 'no' with a smile, than 'yes' with an
attitude.
Customer feedback is an excellent way to track and measure your level of service. You
should not only benchmark your company against your competition, but also against the
goals you set for yourself. Once again, you must remember you are trying to not only meet,
but exceed your customer's expectations. Written surveys are one way to gage customer
satisfaction. This can be useful to obtain feedback on a wide variety of company functions.
Always allow for written comments, as these usually will help shed light on problem areas.
Management's interaction with customers is an excellent way to not only measure overall
efforts, but to also show the level of commitment the company has towards their needs.
A manager who does not spend anytime with customers is likely to be detached and unaware
of what their employees do and what their customers want. You always feel better if you
have the chance to talk to someone who actually sets policy, not just someone paid to carry it
out.
In today's world of bigger, faster, better you need to be the company that gets it right the first
time, and if you don't, you must quickly rectify your mistakes. If you consistently make this
part of how you conduct business, your customer's loyalty will continue to grow. The surest
way to continued success and future growth is to not only meet your customers expectations,
but to exceed them at every possible turn.
Good customer service is the foundation of any business. It provides a platform for continued
growth and helps to build your businesses reputation. You can offer promotions and slash
prices to bring in as many new customers as you want, but unless you can get some of those
customers to come back, your business won't be profitable for long.
Good customer service is all about making them happy. Happy enough to pass positive
feedback about your business to others, who may then try the product or service themselves,
in turn they become repeat customers.

DEALING WITH DIS-SATISFIED CUSTOMERS


The desire to feel important is a fundamental human craving. It is the desire to that
motivates the children of low earning parents to become millionaires. Most people accept
the fact that they are very important and get on with living their lives quietly until, i.e. they buy
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something a product or a service that is sub-standard. Then all of sudden, they feel that they
have the right to be taken seriously. In short, if the product suits with the need of the
customer, it leads to satisfaction, whereas if the product is not in line with the need of
the customer, they eventually get dissatisfied.

The company that fails to acknowledge this strong feeling could head for a lot of trouble.
Consequently some companies channel all customer complaints to the chairman, who deals
with them personally.

A compassionate approach to the compliant with generous compensation for the


inconvenience involved and a letter from the company's chairman is a very efficient way
of demonstrating how seriously the company responds to the customer who had the
misfortune to be badly served by its products.
Nobody likes disappointed customers, but if your business handles complaints well you could
find an angry one becomes a loyal advocate of your business. Alex Tomlin explains how No
matter how great your product or service is, you cannot please all of the people all of the
time. Occasionally, customers are going to experience problems. So, dealing with complaints,
and even encouraging them, should be a key part of any growing business strategy.
More than a third of SMEs do not have a formal procedure in place for dealing with customer
complaints, according to the UK Business Barometer from the University of Nottingham
Institute of Enterprise and Innovation. It suggests that nine out of ten dissatisfied customers
will not do business again with the source of their annoyance, while 80 per cent will vent
their anger to at least ten people and 20 per cent sound off to at least 20 others. This could all
add up to a serious loss of business and damage to brand and reputation.
Furthermore, with only around four per cent of disgruntled consumers actually making a
complaint, it is worthwhile encouraging it. After all, the more feedback you receive the more
you can tailor your service to better satisfy customers. And when a customer complains they
give you the chance to redeem yourself and retain them. Curiously, a well-handled complaint
can create more customer loyalty than a perfectly-delivered initial service. They may even
tell their friends how great you are!

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A clear complaints path having a formal procedure does not mean you need a complaints
department. If a medium-sized business is getting enough complaints to warrant that, it needs
to have a good, hard look at what its doing wrong!
Its important to create a culture of dealing with complaints. Consistency is key when
dealing with unhappy customers, explains Mike Petroot of the Chartered Institute of
Management.
There must be a clear path to follow once a complaint has been received and everyone must
know what that is. One major bugbear of complainants is being shoved from pillar to post,
speaking to several people before any progress is made. Its key that one person takes
responsibility early on in the process and sees it through to the conclusion, communicating
with the customer regularly, even if its not actually their department.
As in most aspects of customer relationship, record-keeping is vital, not just as means of
knowing what is going on, but also to measure how well the procedure works in terms of
satisfying complaints, says Petroot. In this way, you can analyze what methods work most
effectively.

HANDLING CUSTOMER COMPLAINTS


The first thing to appreciate is that every business from time to time has dissatisfied
customers who complain. The reason may be misunderstanding, an accident or the customer's
expectation not being fulfilled. As such it needs to be anticipated, procedures must be
established and staff trained in the principles and techniques of damage limitation.

Dealing with the complaints immediately


Postponing any action is adding insult to any inquiry. The more efficiently the complaint is
received and resolved the more difficult it is for the customer to escalate the problem into a
major controversy.

Admit mistake when they arise

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It is an interesting fact of human nature that when the offender, or his representative
admits the fault, apologize and offer to put the matter right. It is very difficult for the
injured party to continue to feel aggrieved.

Listen to complaints
Listen patiently with an open mind until the customer has finished his criticisms.

When the anger has passed encourage him express his views as to what has gone wrong.
Avoid arguments with the customer
When a dissatisfied customer is telling about the grievances, under no
circumstances should attempt to argue or dispute the matter even if the customer is
wrong by argument the business lose customer.
When a customer has taken the trouble to complain investigate the matter quickly and
efficiently and report back to the customer with a proposal to rectify the complaint.
Make the customer aware how important business is for customer.

CUSTOMER SATISFACTION
Customer satisfaction is what makes a consumer repeat the purchase of certain products and
service. It is based on the ability of the selling organization in meeting the customer needs
precisely. The absence of complaints is not a sufficient indicator that this is being achieved. The
time and effort involves in complaining is a deterrent to making these view known.

MEASURING CUSTOMER SATISFACTION:


Customer satisfaction survey should play a crucial role in enabling an organization to
change and develop with its customer. Only by conducting systematic market research a
company will be able to evaluate how it is perceived by its customers and a lapse with
customers, had to do necessary changes which are required to meet the requirements more
effectively.
Customer satisfaction survey must be conducted regularly to measure customer satisfaction and a
number of key reasons:
Customer requirement change. Improvement in the service must be measured over time.
New competitors enter the market. Organizations need to retain existing customers while

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targeting non-customers. Measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person to their products or services. The state of
satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other factors the customer, such as other products
against which the customer can compare the organization's products.
Work done by Parasuraman, Zenithal and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation of performance and their
perceived experience of performance.
This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature.
Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by
Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into
a single measurement of performance relative to expectation.
The usual measures of customer satisfaction involve a survey with a set of statements using
a Likert Technique or scale.
The customer is asked to evaluate each statement in terms of their perception and expectation
of performance of the service being measured. Arguably, consumers are less complex than
some of these surveys tend to portend.
They are basically in two simple states; satisfied or not satisfied. On or off, just like a switch.
A business can measure its customer satisfaction index by relating the aggregates of satisfied
customers versus dissatisfied customers.
Furthermore, with only around four per cent of disgruntled consumers actually making a
complaint, it is worthwhile encouraging it. After all, the more feedback you receive the more
you can tailor your service to better satisfy customers. And when a customer complains they
give you the chance to redeem yourself and retain them. Curiously, a well-handled complaint
can create more customer loyalty than a perfectly-delivered initial service. They may even
tell their friends how great you are!

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A clear complaints path having a formal procedure does not mean you need a complaints
department. If a medium-sized business is getting enough complaints to warrant that, it needs
to have a good, hard look at what its doing wrong!

Show your customers you value them

A customer satisfaction survey demonstrates the value you place on your customers
experience with your company. Although many businesses are quick to placate customers
who voice complaints, a business that pre-emptively strives to satisfy the customer makes an
even better impression. This consideration of the customers opinions can foster loyalty in the
long run and translate to repeat sales.

Gather customer demographics

Customer satisfaction surveys can be an excellent opportunity to form a clear concept of your
demographic. You can find out your average customers age, gender, occupation and other
statistics that will help you tailor your products and services as well as your marketing and
communications material.

Evaluate customer service representatives

Questions related specifically to the quality of service your customers received from sales
clerks or other representatives of the company can help you evaluate employee
performance. A customer that wouldnt normally complain about poor customer service
or praise good customer service on their own accord might make an exception when
presented with a survey that elicits their opinions.

Be convenient for customers

A survey thats long, difficult to comprehend or onerous in any way is inconsiderate of


the customers time. Customers that are gracious enough to take time out of their day to
help you better your business should be rewarded with a survey thats easy to understand
complete and return.

Lead to change

After customer surveys have been completed and trends have been analyzed, the
company should act on what the results have revealed. If your survey data indicates that
your website is difficult to navigate, take action toward getting the website layout
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tweaked. If customers have voiced concerns that your return policy is unfair, revisit and
revise it if necessary. Surveys that dont evoke changes in the company send a bad
message about the companys commitment to customer service.

ADVANTAGES OF CUSTOMER SATISFACTION


Customer satisfaction surveys have long been woven into corporate organizational business
practices, marketing programs and other customer-engagement initiatives. A customer
satisfaction survey enables a company to gain great insights about customers' needs, wants
and requirements, and generates feedback (critical or praiseworthy) about the company's
products, services and customer service. The results and feedback generated from a customer
satisfaction survey attunes a company towards more focused customer service, and develops
better relationships with customers to achieve brand success.
Feedback
Customer feedback in the form of answers, comments and suggestions about a company's
products, business practices and customer service is one of the major benefits of a customer
satisfaction survey.

Desired Improvements
If feedback is critical or negative on any aspect, quick measures can be taken to bring about
the desired improvements or address grievances and placate relevant customers.
Better Innovation
Analysis of customer feedback surveys and the information collected becomes the basis for
customer intelligence. Used strategically, such intelligence can be used to drive innovation
efforts and initiatives at the company.
Greater Customization
A customer satisfaction survey also shows critical insights about different customer segments
and products so that services and marketing approaches can be tailored accordingly.
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Long-Term Relationship
Customer satisfaction surveys enable companies too consistently and better address customer
needs and expectations, maintain brand reputation and facilitate long-term relationships with
customers.
100% of clients satisfied or very satisfied.
An independently conducted annual customer survey has proven our clients are satisfied or
very satisfied with Digital Genius and would recommend our unique facility management
services to others. We are constantly looking for new ways to improve our service, by
identifying and improving those processes that impact your business.
Product Quality
Well, one important driver in both consumer and business settings is product or service
quality. In addition, for business customers the following attributes related to vendor
performance have an impact on customer satisfaction

Sales representative performance


This includes the ability of sales representatives and account managers to address customer
issues, to understand key strategic issues of the customer, to know the customer business
processes, to be easily reached, and to provide information on current market conditions.
Interesting here is that a longer relationship between the account manager and the customer
has an additional positive effect and can compensate for weaker performance in the other
areas.
Product line
This relates to the breadth of the product line portfolio and the ability to deliver a
comprehensive solution.
Responsiveness
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This means the time between an addressed inquiry or issue and the response by the sales
representative, the time to resolve issues, and the ability to provide quote responses in time.
Delivery
This relates to the vendors ability to deliver the solution in the agreed time and quality. It
also includes the degree of matching committed and delivered functionality and features as
well as the ability to provide flexible delivery options.
Revenue and margin
For cloud product vendors additionally important, but not crucial, criteria for customer
satisfaction are the revenue and margin that your product generates for the customer (who in
this case acts more as a channel partner).

Another two key findings are:

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Negative performance has a greater impact in business, however the company has to adopt
proactive measures, ensuring them to retain their customers.
The link between customer satisfaction and willingness to pay is non-linear, so that from a
certain point on increasing satisfaction does not translate into higher willingness to pay. The
combination of these two suggest to focus more on avoiding customer dissatisfaction than on
investing too much in customer satisfaction. To maximize overall satisfaction, attribute
performance should be optimized.
For any given factor, negative performance should be eliminated first before focusing on
positive performance. Also, it is important to always monitor customer satisfaction, so you
can react early enough and balance your measures.
Since you want exploit higher willingness to pay also for higher prices, you need to create
customer satisfaction already in the pre-sales phase as well. For that it is very important to
both enable the customer to trial your product or service before the actual purchase and to
have an excellent product presentation highlighting all the benefits without setting false
expectations.

Managing Customer: A CRM best tool to retain the customer:


Customer relationship management (CRM) is a widely implemented strategy for
managing a companys interactions with customers, clients and sales prospects. It involves
using

technology

to

organize,

automate,

and

synchronize

business

processes

principally sales activities, but also those for Marketing, Customer service, and Technical
support.
The overall goals are to find, attract, and win new clients, nurture and retain those the
company already has, entice former clients back into the fold, and reduce the costs of
marketing and client service.

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Customer Relationship Management describes a company-wide business strategy including
customer-interface departments as well as other departments. Measuring and valuing
customer relationships is critical to implementing this strategy.
Benefits of Customer Relationship Management
A Customer Relationship Management system may be chosen because it is thought to provide
the following advantages:

Quality and efficiency

Decrease in overall costs

Decision support

Enterprise ability

Customer Attentions

Increase profitability.

TYPES OF CUSTOMERS
The Marketing Manager should have the knowledge of various types of customers their
attitudes and behavior and ability to recognize and handle them. A sales man must be aware
of all customers with different mindsets. Each customer has his own personality and his
psychological make-up.
There is no ready-made formula to describe the type of customers. However the following
are the important types of customers.

Impulsive Customers
Silent Customers
Talkative Customers
Argumentative Customers

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Nervous Customers
Snobbish Customer
Deliberate Customer
Price minded Customer
Suspicious Customer
Undecided Customer
Group Shopper
Industrial Buyers
Friendly Customers

DATA ANALYSIS & INTERPRETATION


PART A

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AGE GROUP
Age

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

20-25

10

10

26-31

22

44

15

30

32-37

15

30

11

22

37 & Above

16

19

38

Total

50

100

50

100

25

20

15
Maruti Suzuki SWIFT
Hyundai I-20

10

0
20-25

26-31

32-37

37 & Above

INTERPRETATION: From the above table it is clear 44% of the respondents of Maruti
Swift users fall under 26-31 age group & 38% of the respondents of Hyundai i-20 users fall
under the age group of 37 & above.

GENDER OF RESPONDENTS

Gender

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Male

46

92

41

82

Female

04

08

09

18

Total

50

100

50

100

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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50
45
40
35
30
Male
Female

25
20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTERPRETATIONS: According to the demographic profile in this study we can


interpret that maximum numbers of users for both the cars is male. Maximum of 92% & 82%
are male users of Maruti Swift & Hyundai i-20 respectively whereas a female user ranges
between 8-18%.

OCCUPATION

Occupation

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Businessman

06

12

11

22

Employee

31

62

30

60

Student

06

12

05

10

Other

07

14

04

08

Total

50

100

50

100
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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INTREPRETATIONS: In this survey, it is clear that Employees are the majority users
for both the cars. 62% of the respondents use Maruti Swift who is an employee & 60% in
Hyundai i-20. Employees or officials prefer these 2 cars highly because of the product image
& both the cars fall under premiere hatchback car segment.

MONTHLY INCOME

Maruti Suzuki

Average Income

SWIFT

Percentage

Hyundai i-20

Percentage

Below 10,000

02

04

00

00

10,000-20,000

08

16

05

10

21,000-40,000

12

24

09

18

40,000 & Above

28

56

36

72

Total

50

100

50

100

40
35
30
25
20
15

Maruti Suzuki SWIFT


Hyundai i-20

10
5
Ab
ov
e
&
40
,0
00

21
,0
00
-4
0,
00
0

20
,0
00
10
,0
00
-

Be
low

10
,0
00

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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INTERPRETATIONS: Since 62% of this survey is an employee most of them are of


40,000 & above & it shows that below 10,000 incomes group cannot afford these cars.

PART B
CAR YOU OWN
Car

Number

Maruti Suzuki

50

SWIFT
Hyundai i-20

50

Total

100

Number
60
50
40
Number

30
20
10
0
Maruti Suzuki SWIFT

Hyundai i-20

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INTREPRETATIONS: From the above table it is clear there are equal numbers of
Maruti Swift & Hyundai i-20 users.

RECOMMENDATION
Recommendation

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Friends & Family

26

52

23

46

Personal interest

10

20

13

26

Colleague

12

24

05

10

Sales Representative

02

04

10

20

Total

50

100

50

100

30
25
20
15
Maruti Suzuki SWIFT
Hyundai i-20

10
5

lle
ag
ue
Co

Fr
ien
ds

&

Fa
mi
ly

INTERPRETATIONS: From the above table it is clear that 52% of the Maruti Swift
respondents were influenced by friends & family & 46% for Hyundai i-20, whereas the least
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


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were influenced by Sales Representatives in Maruti Swift. It conveys that Hyundai Customer
Relation Management is a way better than that of Maruti Suzukis.

Reason for buying


Reason

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Style

07

14

12

24

Mileage

09

18

05

10

Resale Value

13

26

06

12

Power

12

24

10

20

Brand Image

02

04

15

30

Maintenance

07

14

02

04

Total

50

100

50

100

16
14
12
10
8
Maruti Suzuki SWIFT
Hyundai i-20

6
4
2

Im
ag
e
Br
an
d

Va
lue
Re
sa
le

St
yle

INTERPRETATIONS: From the above table it is clear that there is a slight edge
between the resale value & brand image for choosing the Maruti Swift (26% & 24%
respectively) & 2% for brand image shows Marutis brand image compared to Hyundai that
of 30% & also the highest reason the respondents have marked for choosing i-20 as their car.

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DURATION OF USAGE

Duration

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Less than 1 year

15

30

05

10

1-2 years

18

36

16

32

2-3 years

17

34

08

16

Above 3 years

10

20

21

42

Total

50

100

50

100

25
20
15
10

Maruti Suzuki SWIFT


Hyundai i-20

ye
ar
s
Ab
ov
e

ye
ar
s
23

ye
ar
s
12

Le
ss

th
an

ye
ar

INTERPRETATIONS: From the above table it is clear 36% of the Maruti Swift users
are using from past 1-2 years which in a way conveys that because of the high resale value
respondents have opted Swift car, whereas 42% of the Hyundai i-20 respondents are using
their car for more than 3 years.

DISTANCE TRAVELLED
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Maruti Suzuki

DISTANCE

SWIFT

Percentage

Hyundai i-20

Percentage

500-5000 kms

02

03

06

5000-20000 kms

08

16

05

10

20000-40000 kms

19

38

20

20

Above 40000 kms

22

44

22

44

Total

50

100

50

100

25
20
15
10

Maruti Suzuki SWIFT


Hyundai i-20

km
s

km
s

Ab
ov
e4
00
00

20
00
0-

40
00
0

km
s
00
00

50
00
-2

50
0-

50
00

km
s

INTREPRETATIONS: From the above table it is clear that 44% of the Maruti SWIFT
respondents have clocked more than 40,0000 kms & Hyundai i-20 users have also clocked
more than 40,000 kms by 44% of the respondents.

SATISFACTION WITH OVERALL PERFORMANCE

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SATISFCTION
WITH OVERALL
PERFORMANCE

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

YES

44

88

41

82

NO

06

12

09

18

Total

50

100

50

100

50
45
40
35
30
YES
NO

25
20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTERPRETATION: From the above table it is clear that 88% of the SWIFT
respondents are highly satisfied with the overall performance of the car & with the slight
edge 82% of the Hyundai i-20 respondents are highly satisfied with the car.

EXPERIENCE OF MAJOR PROBLEMS


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EXPERIENCE OF
MAJOR

Maruti Suzuki

PROBLEMS

SWIFT

Percentage

Hyundai i-20

Percentage

YES

02

04

01

02

NO

48

96

49

98

Total

50

100

50

100

60
50
40
YES
NO

30
20
10
0
Maruti Suzuki SWIFT

Hyundai i-20

INTERPRETATIONS: From the above table it is clear that only 4% of Swift


respondents have faced the major problems in the car whereas in Hyundai i-20 its only 2%.
Here Hyundai i-20 seems to be very reliable.

BREAKDOWN

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BREAKDOWN

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Very often

00

00

00

00

Often

02

04

01

02

Rarely

05

10

06

12

Not at all

43

86

42

84

Total

50

100

50

100

50
45
40
35
30
Maruti Suzuki SWIFT
Hyundai i-20

25
20
15
10
5
0
Very often

Often

Rarely

Not at all

INTERPRETATIONS: From the above table it is very clear that both Maruti SWIFT &
Hyundai i-20 users havent faced very often or often breakdown, this tells about the overall
quality of both cars. But at the slight edge 86% of the Maruti Swift respondents & 84% of the
Hyundai i-20 respondents have not faced any breakdown at all.

SERVICE SATISFACTION AT AUTHORIZED SERVICE CENTRE

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SATISFACTION

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Yes

45

90

47

94

No

05

10

03

06

Total

05

100

50

100

50
45
40
35
30
Yes
No

25
20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTREPRETATION: From the above table it is very clear that 90% of the Maruti
SWIFT respondents are highly satisfied with the service provided the authorized service
centre & almost 94% of the Hyundai i-20 respondents are satisfied with the same. This
indicates that Hyundai is successful in providing a very good service.

SALES SERVICE TEAM PROMPTNESS/INFORMATIVE


PROMPTNESS/

Maruti Suzuki

INFORMATIVE

SWIFT

Yes

Percentage

Hyundai i-20

Percentage

39

78

44

88

No

11

22

06

12

Total

50

100

50

100

75

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.

50
45
40
35
30
Yes
No

25
20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTREPRETATION: From the above table it is clear that 78% of the Maruti SWIFTs
respondents queries have been answered promptly & clearly by the Sales Service Team
while purchasing the car whereas 88% are of the Hyundai i-20 users are happy with the
queries being answered promptly at the time of purchase. It indicates that Hyundais sales
service team is working effective in giving information to its customers.

PRICING OF THE CAR

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
PRICING

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Expensive

21

42

38

76

Moderate

11

22

02

04

Reasonable

08

16

06

12

Inexpensive

10

20

04

08

Total

50

100

50

100

40
35
30
25
Maruti Suzuki SWIFT
Hyundai i-20

20
15
10
5
0
Expensive

Moderate

Reasonable

Inexpensive

INTERPRETATIONS: From the above table it is clear that 42% of the Maruti SWIFT
respondents feel the pricing policy is expensive & only 8% say it is reasonable. Whereas 76%
of the Hyundai i-20 respondents feel the pricing of the car is expensive & only 12% say it is
reasonable. It indicates that Hyundai i-20 respondents are unhappy with the expensive pricing
of the car compared to that of Maruti SWIFT.

MAINTANENCE COST

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
MAINTANENCE

Maruti Suzuki

COST

SWIFT

Expensive

Percentage

Hyundai i-20

Percentage

12

24

25

50

High

11

20

15

30

Reasonable

20

22

06

12

Low

07

14

04

08

Total

50

100

50

100

30
25
20
Maruti Suzuki SWIFT
Hyundai i-20

15
10
5
0
Expensive

High

Reasonable

Low

INTREPRETATIONS: From the above table it is clear that 40% of the Maruti SWIFT
respondents feel that the maintenance cost is reasonable whereas 50% of the Hyundai i-20
respondents say that maintenance cost is expensive & 30% say its very high. So it concludes
that Maruti SWIFT has a lower maintenance cost compared to that of Hyundai i-20.

BUILD QUALITY

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20Mysore.
BUILD QUALITY

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

Excellent

20

40

35

70

Good

22

44

10

20

Average

02

04

03

06

Poor

06

12

02

04

Total

50

100

50

100

40
35
30
25
Maruti Suzuki SWIFT
Hyundai i-20

20
15
10
5
0
Excellent

Good

Average

Poor

INTERPRETATIONS: From the above table it is clear that 44% of the Maruti SWIFT
respondents say the build quality is good & 40% say its excellent, whereas 70% of the
Hyundai i-20 users say that the build quality is Excellent. Hyundai i-20 has a better build
quality than Maruti Swift.

INITIAL & FINAL PICKUP


INITIAL & FINAL

Maruti Suzuki

Percentage

Hyundai i-20

Percentage
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
PICKUP

SWIFT

Superb

35

70

21

42

Extraordinary

09

18

09

18

Not bad

03

06

15

30

Average

02

04

10

Total

50

100

50

100

40
35
30
25
Maruti Suzuki SWIFT

20

Hyundai i-20

15
10
5
0
Superb

Extraordinary

Not bad

Average

INTERPRETATIONS: From the above table it is clear that 70% of the SWIFT
respondents feels the power of their car to be superb & only 2% feel its average, whereas
only 42% of the Hyundai i-20 respondents feel the power to be superb & 30% say its not bad.
Maruti SWIFT is the clear winner here.

FACTORS CONSIDERED WHILE PURCHASING THE CAR

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
FACTORS CONSIDERED
WHILE PURCHASING THE

Maruti Suzuki

CAR

SWIFT

Percentage

Hyundai i-20

Percentage

Brand

09

18

12

24

Mileage

12

24

08

16

Price

07

14

05

10

Features

08

16

13

26

Pickup

10

20

05

10

After Sales Service

04

08

07

14

Total

50

100

50

100

14
12
10
8
Maruti Suzuki SWIFT
Hyundai i-20

6
4
2

Pi
ck
up

Pr
ice

Br
an
d

INTERPRETATIONS: From the above table it is clear that maximum of 24% of Maruti
Swift respondents chose the car for the Mileage factor whereas maximum of 26% of the
Hyundai i-20 respondents chose the car for the Feature factor.

SEATING COMFORT
SEATING

Maruti Suzuki

Percentage

Hyundai i-20

Percentage
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
COMFORT

SWIFT

Very Comfortable

15

30

28

56

Comfortable

18

36

10

20

Congested

10

20

07

14

Very Congested

07

14

05

10

Total

50

100

50

100

30
25
20
15
Maruti Suzuki SWIFT
Hyundai i-20

10
5

on
ge
ste
d
Ve
ry
C

ng
es
ted
Co

le
mf
or
tab
Co

Ve
ry
C

om
fo
rta
ble

INTERPRETATIONS: From the above table it is clear that maximum of 36% say the
seating is comfortable & 14% say its very congested, whereas 56% of Hyundai i-20
respondents say the seating is very comfortable & only 20% say its very congested. So
Hyundai i-20 has a better seating comfort.

EXPECTATIONS ABOUT INTERIORS

EXPECTATIONS

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

82

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
Leg-Room

21

42

15

30

High Boot Space

18

32

14

28

02

04

04

08

Rear AC Vents

07

14

12

24

Chillier Box

02

04

05

10

Total

50

100

50

100

Adjustable Seat
Height

25
20
15
10
Maruti Suzuki SWIFT
Hyundai i-20

Bo
x
Ch
illi
er

Ve
nts
AC

Re
ar

ea
tH
eig
ht
le
S

Ad
jus
tab

Hi
gh
Bo
ot
S

pa
ce

Le
gRo
om

INTERPRETATIONS: From the above table it is clear that maximum of 42% Maruti
SWIFT respondents expect more of legroom in it & also 18% expect high boot space & also
maximum of 30% Hyundai i-20 respondents expect more of legroom & 38% expect more
boot space.

GROUND CLERANCE
GROUND

Maruti Suzuki

CLERANCE

SWIFT

YES

45

Percentage

Hyundai i-20

Percentage

90

42

84
83

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
NO

05

10

08

16

Total

50

100

50

100

50
45
40
35
30
YES
NO

25
20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTREPRETATIONS: From the above table it is clear that maximum of 90% Maruti
SWIFT respondents are happy with the ground clearance of the car whereas 84% are happy
with Hyundai i-20. It is because Indian drives excepts the car to be more versatile on all road
conditions. Maruti SWIFT has a better ground clearance.

HAPPINESS WITH SPECIFICATIONS


SPECIFICATIONS

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

YES

35

70

41

82

NO

15

30

09

18

Total

50

100

50

100
84

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.

45
40
35
30
25

YES
NO

20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTERPRETATIONS: From the above table it is clear that maximum of 70%


respondents are happy with the Maruti Swifts technical specifications whereas 82% of
Hyundai i-20 respondents are happy with the technical specifications because of the high
features & greater engine ratio.

HANDLING

HANDLING

Maruti Suzuki
SWIFT

Percentage

Hyundai i-20

Percentage

YES

26

52

36

72

NO

24

48

14

28

Total

50

100

50

100
85

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.

40
35
30
25
YES
NO

20
15
10
5
0
Maruti Suzuki SWIFT

Hyundai i-20

INTERPRETATIONS: From the above table it is clear that 52% of Maruti Swift
respondents are happy with the handling capabilities & 48% are not, whereas in Hyundai i-20
almost 72% are happy with the handling. So Hyundai i-20 has a better handling capabilities
than Maruti Swift.

FINDINGS SUGGESTIONS & CONCLUSIONS


FINDINGS
1. Maximum number of Maruti SWIFT respondents have a very good opinion about the
Mileage of the car & its maintenance
2. Almost 76% of the Hyundai i-20 respondents say the pricing of the car is very high.
3. Almost 26% of the Maruti Swift respondents got the car because of its resale value.
4. Almost 70% of the Hyundai i-20 respondents got the car because of hyundais brand
image & reputation.
5. Almost 88% of the Maruti Swift respondents & 82% of the Hyundai i-20 respondents
are happy with the overall performance.
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
6. Almost 72% of the Hyundai i-20 respondents are happy with the handling capabilities
of the car, whereas Maruti Swift has to improve more on that.
7. Most respondents are happy with the specifications of Hyundai i-20 car (82%)
8. Both the cars have good ground clearance on Indian roads.
9. Almost 42% of the Maruti Swift respondents expect more of leg-room in the car.
10. Almost 14% of the Maruti Swifts respondent says it has very congested seating
comfort.
11. Maruti Swift has superb initial & final pickup

SUGGESTIONS
1. Hyundai should focus on improving the fuel efficiency of its i20 model, the quality
and reliability needs to be worked upon too, on which the resale value of car depends.
2. Hyundai needs to tap the lower middle class and so has to cut down the pricing of
Hyundai i-20 so as to compete more with Maruti Swift.
3. Maruti Suzuki should improvise the overall build quality of Maruti Swift.
4. Maruti Suzuki should improve on sales service team promptness/ customer
relationship management

CONCLUSIONS
1. Maruti Suzuki Swift is considered to be most fuel-efficient car on Indian roads,& has
better quality, higher resale as compared to Hyundai i20.
2. Maruti Suzuki Service & Spare parts are available throughout India and in local
markets also, & Swift has comparatively low maintenance cost in contrast to Hyundai
i20.
3. While buying a car, brand image, resale value & brand image plays a vital role
4. Majority of the respondents had bought changed their cars within 5 10 years of
purchase of their older cars.
5. Maruti Suzuki Swift has been rated better than Hyundai i20 by the people in terms of
mileage, price, pick up, maintenance and brand image, while Hyundai i20 has only
been rated better in terms of looks and shape.

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
6. Maruti Suzuki Swift is more preferred than Hyundai i20 by people in terms of Office
and Joy purposes, while Hyundai i20 is more preferred for official use.

BIBILIOGRAPHY
Authors:

1. Suja R Nair Consumer Behavior in Indian perspective6th Edition, Himalaya


Publication
2.

Philip Kotler Marketing management13th Edition, Mc Grew Hill

3.

C.N.Sontakki Principles of Marketing2003, Kalyani Publication

Websites
http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/WhoWeAre/index.html
88

A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
http://www.marutisuzuki.com/
http://autos.maxabout.com/cars/hyundai
http://autos.maxabout.com/cars/maruti
http://autos.maxabout.com/cars/maruti/swift-2010
http://autos.maxabout.com/cars/hyundai/i20-2011
http://www.ijsrp.org/research-paper-0214/ijsrp-p2670.pdf

ANNEXURE
QUESTIONNAIRE
A Comparative Study on Consumer Behavior between Maruti Swift and
Hyundai i 20, Mysore.
Dear Sir/Madam,
I Karthik K J student of 4th semester MBA at Pooja Bhagavat
Memorial Mahajanas PG Centre, as a part of my curriculum have undertaken
the project on Consumer Behavior between Maruti Swift and Hyundai i 20,
Mysore. I would be grateful if you can kindly cooperate with me by spending
your precious time and providing me valuable information needed for the
project .any information received from you will be kept strictly confidential.
PART A
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
1. Name: - ...
2. Contact-No.
3. Age: - a) 20-25
b) 26-31
c) 32-37

d) Above 37

4. Gender: - Male:
5. Occupation: a) Businessman
c) Student
6. Average income: a. Below 10,000
b. Between 10,000-20,000
c. Between 21,000-40,000
d. 40,000 & above

Female:
b) Employee
d) Other

PART B
Please select the car & tick the appropriate options below
1. Which car are you using?
a) Maruti Swift
b) Hyundai i-20
2. Who recommended you to buy the car?
a) Friends & Family
b) Personal interest
c) Colleague
d) Sales Representative
3. Important reason for buying the car?
a) Style
b) Mileage
c) Resale Value
d) Power
e) Brand Image
f) Maintenance cost
4. For how many years are you using the car?
a) Less than 1 year
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
b) 1-2 years
c) 2-3 years
d) Above 3 years
5. Distance travelled by the car?
a) 500-5000 Kms
b) 5000-20000 Kms
c) 20000-40000 Kms
d) Above 40000 Kms
6. Are you satisfied with the overall performance of the car?
a) YES
b) NO
7. Have you experienced any major problems in your car?
a) YES
b) NO

8. How often have you faced breakdown in your car?


a) Very often
b) Often
c) Rarely
d) Not at all
9. Are you satisfied with the overall Services provided by the Authorized Service
Centre?
a) YES
b) No
10. Are your queries have been answered promptly & clearly by the Sales Service Team
while purchasing the car?
a) Yes
b) NO
11. How do you feel about the pricing of the car?
a) Expensive
b) Moderate
c) Reasonable
d) Inexpensive
12. How do you rate the maintenance cost of your car?
a) Very Expensive
b) High
c) Reasonable
d) Low

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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
13. How do you rate the build quality of the car?
a) Excellent
b) Good
c) Average
d) Poor
14. How do you feel about the Initial & Final pickup of your car?
a) Superb
b) Extraordinary
c) Not bad
d) Average

15. What factors did you consider while purchasing the car?
a) Brand
b) Mileage
c) Price
d) Features
e) Pickup
f) After Sales Service
16. How do you rate the seating comfort of your car?
a) Very comfortable
b) Comfortable
c) Congested
d) Very congested
17. What factors you expect more about the interiors of the car?
a) Leg-room
b) High boot-space
c) Adjustable seat
d) Noise-free cabin
e) Rear AC vents
f) Chiller box
18. Are you happy with the ground clearance of your car?
a) YES
b) NO
19. Are you happy with the specifications of your car with respect to the pricing?
a) YES
b) NO
20. How do rate the handling of your car?
a) Very Good
b) Good
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A Comparative Study on Consumer Behavior between Maruti Swift and Hyundai i


20Mysore.
c) Average
d) Poor

THANK YOU

93