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HISTORY OF CARS

With the invention of the wheel in 4000 BC, mans journey on the road of
mechanized trans port had begun. Since then he continually sought to devise an
automated, labor saving machine to replace the horse.
In the early 1760s after several attempts, French Captain, Nicholas J. Cugnot
built the first steam driven tractor. In 1885, Karl Benz & G. Damlier produced the first
vehicle powered by internal combustion engine. Then the petrol engine was introduced.

INDUSTRY DEVELOPMENT

The first motor car on the Indian street was seen in 1898. Mumbai had its 1st taxicabs
in the early 1900. Then for the next fifty years, car was imported to satisfy domestic
demand. In 1946, Premier Automobile Ltd. (PAL) manufactured the 1st car in country. HM
started as a manufacturer of auto components & then started manufacturing cars in
1949.

In 1952, Govt. Of India set up a tariff commission to devise regulation to

develop an indigenous automobile industry in the country. After the commission
submitted its recommendation, the GOI asked assembly plants which did not have
plans to setup manufacturing facilities, to shut down operations. As a result General
Motors, Ford & other assembler closed operations in the country. Up to the early 1982
proved to be the dark age for the consumer, as his choice throughout this period
was limited to two models i.e. Ambassador & Padmini. It was only in 1985, after the
entry of Maruti Udyog, that the carmakers were given a free hand to fix the prices of
the car.

The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd., the joint
venture with Suzuki Motors Ltd. Of Japan. MUL introduced Maruti 800 in 1983
providing a complete facelift to the Indian car industry. The car was launched as a
Peoples Car.

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The de-licensing of auto industry of auto industry in 1983 opened the gates to a
virtual flood of international automakers into country. Many companies have entered
the car-manufacturing sector, to tap middle and premium segment of car industry.

INTRODUCTION TO HYUNDAI MOTORS INDIA

Hyundai Motor India Limited, a wholly-owned subsidiary of Hyundai Motor Company

(HMC), South Korea, was established in India in December 1997. The integrated
manufacturing plant set up to an initial investment of US$ 614 million is presently the
largest manufacturing facility of HMC outside Korea.
Located at Irrunattukottia, near Chennai, Hyundai Motor India has emerged as a
significant driver of the regions economy by helping co-develop one of Indias largest
automotive manufacturing zones supported by over 25 Indo-Korean joint-venture
partners and original equipment vendors, jointly employing over 10,000 people.

The companys maiden launch, Santro, made marketing history by becoming

one of Indias best selling compact cars and catapulted Hyundai to the position of
Indias second largest carmaker in just six months. The winner of the Business
Standard Motoring "Car of the year 1999" and rated the "Best Small Car" in the J D
Power Asia Pacific Initial Quality and APEAL studies for three years in a row Santro

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continues to be Indias most preferred and recommended compact car.

Accent launched in 1999, has also stood its ground against some of the best-known
global brands to emerge as a leader in the Indian mid-size cars segment. Offering one
of the most extensive and technologically advanced product line-ups in this segment,
Accent has topped the JD Power APEAL customer satisfaction study and the segment
sales for two years in a row.

Hyundai Sonata (2009) price for the North American market has been announced by Hyundai
Motor America. The price for 2009 Hyundai Sonata starts at 18,00,000. The Hyundai Sonata
GLS powered by the 2.4-liter I4 engine and the 5-speed manual gearbox and goes up to
26,345 for the Hyundai Sonata Limited equipped with a 3.3-liter V6 engine and a 5-speed
automatic gearbox. The 2009 Hyundai Sonata is on sale across the United States at Hyundai.

Hyundai Motor America announced pricing for the refreshed 2009 Sonata at the 2008
Chicago Auto Show today. The 2009 Sonata features an all-new interior, enhanced
suspensions and revised power trains boasting even more horsepower and improved fuel
economy. The 2009 Sonata is now on sale at Hyundai dealerships.
Model Engine Transmission MSRP with freight
Sonata GLS 2.4-liter I4 5-speed manual 18,7959
Sonata GLS 2.4-liter I4 5-speed automatic 19,9958

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Sonata GLS 2.4-liter I4 PZEV 5-speed automatic 19,9957
Sonata GLS 3.3-liter V6 5-speed automatic 22,2456
Sonata SE 2.4-liter I4 5-speed manual 21,1955
Sonata SE 3.3-liter V6 5-speed automatic 23,8454
Sonata Limited 2.4-liter I4 5-speed automatic 24,6453
Sonata Limited 2.4-liter I4 PZEV 5-speed automatic 24,6453
Sonata Limited 3.3-liter V6 5-speed automatic 26,3455
You expect that all of these changes and new content would lead to startling new price points
for the Sonata, said John Krafcik, vice president, Product Development and Strategic
Planning, Hyundai Motor America. But that not Hyundais business model. With a starting
price of just 18,00,000, including delivery, the 2009 Sonata is very well equipped to compete
with the best mid-size sedans on quality, craftsmanship, capability and of course, value.
The Sonata combines refined design, proven dependability, spirited performance and an
extensive list of standard features to increase its appeal to a broader range of customers.
For 2009, Sonata raises the bar for value and standard safety technology in the mid-size
segment. Hyundais sales leader boasts new features ranging from standard USB/iPod
auxiliary inputs to available navigation and sport-tuned suspension. Combined with Sonatas
continued leadership in safety it remains the only mid-size sedan under $20,000 with standard
Electronic Stability Control (ESC) the 2009 American-made Sonata is the smartest choice in
the competitive mid-size sedan segment.
The new, second-generation Theta II 2.4-liter DOHC inline four-cylinder engine delivers
more horsepower and quicker acceleration. Fuel economy numbers are 22 mpg city/32 mpg
highway with the standard five-speed manual transmission or the newly available five-speed
automatic transmission with SHIFTRONIC. The Theta II is rated at 175 horsepower and 168
lb.-ft. of torque. This high-tech, all-aluminum, 16-valve engine now features Continuously
Variable Valve Timing (CVVT) on both camshafts and a Variable Induction System (VIS) for
better engine breathing.
Sonatas 3.3-liter V6 engine now pumps out 15 more horsepower and three more pound-feet
of torque (249 horsepower @ 6,000 rpm and 229 lb.-ft. of torque at 4,500 rpm). This newly
refined power plant features all-aluminum construction, dual overhead camshafts, four valves
per cylinder, CVVT on both camshafts and stiffer hydraulic engine mounts for optimum
power, efficiency and refinement. A variable intake system is added for 2009, which further
broadens its power curve, improving off-the-line acceleration and passing performance. New
mileage figures for V6-powered Sonatas are 19 mpg city/29 mpg highway.
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All V6-powered Sonatas use Hyundais five-speed SHIFTRONIC automatic transmission,
which features an overdrive lock-up torque converter for improved highway fuel economy.
The automatic transmission has a new reducing valve and solenoid valve for smoother shift
quality while the manual transmission has been refined for more precise shifts.
The pleasant surprises continue inside where Hyundai designers have thoroughly revamped
the cockpit to create the ambiance of an upscale, premium sedan. The sophisticated look is
achieved thanks to a completely new center console and instrument panel, which borrows
design cues and rich materials from the premium Hyundai Veracruz. The Sonata continues to
be classified by the Environmental Protection Agency as a Large Car, truly a class above
Camry, Altima, Fusion and Malibu (all are categorized as mid-size cars).
Music lovers will welcome the 2009 Sonatas inclusion of standard auxiliary input jacks (3.5
mm mini-jack and USB input) to accommodate and charge audio devices such as iPods.
Other refinements include dual-zone climate controls for the driver and front-seat passenger
and two-stage front seat warmers. A new factory-installed touch screen navigation system is
now available as well.
The design team added a more refined touch to Sonatas exterior design, with new bumpers,
lamps, wheels and grille creating a more elegant, dynamic and taut stance. The anybody
design crafted of high-tensile steel features a concave hood design, distinctive rear-door cut
lines, strong Z-lined body-to-bumper interfaces and four-barrel jeweled projector lens
headlights. New chrome body side and bumper moldings match the chrome grille and
chrome-accented exterior door handles on Limited models.
On the safety side, 2009 Sonatas front collision performance has been improved by tweaking
the design of the engine subframe. Every Sonata also has lifesaving ESC as standard
equipment along with six standard airbags. The braking technology package includes four-
wheel disc brakes and an Anti-Lock Braking System (ABS) that includes Brake Assist and
Electronic Brake-force Distribution (EBD).
Hyundai Motor America, headquartered in Fountain Valley, Calif. is a subsidiary of Hyundai
Motor Company of Korea. Hyundai vehicles are distributed throughout the United States by
Hyundai Motor America and are sold and serviced by more than 780 Hyundai dealerships
nationwide.

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 VISION & MISSION

HMMA Vision
Our Team provides value for your future.

HMMA Mission Statement

To create exceptional automotive value for our customers by harmoniously blending
safety, quality and efficiency. With our diverse team, we will provide responsible
stewardship to our community and environment while achieving stability and security
now and for future generations.

Marketing Strategy

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

Hyundai Pas 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

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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 Pas differentiation to the
target marketing segments identified above.

Positioning

Using product differentiation we are positioning the Hyundai Pa 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 pa is fully loaded and will be sold with 3 year warranty. We will also
introduce a diesel/CNG/LPG version of Hyundai Pa in the near future. Also the high end
model will have an option of GPS system.

Price
Hyundai Pas base model will be introduced at ex-showroom price of 3 lakhs. This
price reflects a strategy of
1) attracting desirable channel partners
2) Taking market share from Maruti.

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 ENVIRONMENT FRIENDLY

Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices. Living up to its commitment of
providing global standards of quality and process management in India, Hyundai had
put in place an Environment Management System (EMS) at its manufacturing plant in
Chennai right from its project stage. The certification process was completed in a
record time of 10 months.

The assessment was done by TUV SUDDEUTSCHLAND and covered areas like
Awareness Training, Technology Up gradation, Recycling, Waste Management and
fulfilling Government Regulations.

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. The company has also been in
the forefront of development of environment friendly technologies like Hybrid Electric
Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the
ISO 14001 certification for all its three major plants in Ulsan, Asan and Jeonju in
S.Korea.

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 SOCIAL RESPONSIBILITY

Hyundai, as a responsible corporate citizen is committed to sustainable social

development and the preservation of the environment. All the company's key
manufacturing units, including the Indian plant have the ISO 14001 certification for its
Environment management practices. As a part of its social responsibility programs, the
company conducts various campaigns to spread awareness of in-car safety and safe
driving practices, particularly targeted against drunken driving, speeding, etc.

As a part of its community development projects, the company has adopted

a few villages around its factory in Tamilnadu and has been working towards the
social and economic development of these villages, assisting them in the areas of
primary health care, education, basic amenities and employment opportunities.

HYUNDAI FINANCE PARTNERS

1. ABN Amro Bank.

2. GE Country wide.

3. HDFC Bank.

4. ICICI Bank.

5. Citibank.

6. Standard Charted Bank.

7. Kotak Mahindra Primus Ltd.

8. Bank of Punjab.

9. Mahindra & Mahindra Financial Services Ltd.

10. Punjab National Bank.

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HYUNDAIS PRODUCTS IN INDIA

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 GOTA ANALYSIS

GLOBAL OPPORTUNITIES THREAT ANALYSIS

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OPPORTUNITIES

Leading Growth

As the market leader, company led the growth in the passenger car sector last year.
Hyundai sales went up 30% to 4,72,000 units. This, as I said earlier, is the highest annual sale
since company began operations 20 years ago. Hyundai also gained market share, mainly on
account of its performance in the competitive A2 segment where it increased its share from
40.3% in 2011-12 to 47.7% in 2012-13. The record sales performance was reflected in the
financials. Net Sales (excluding excise) grew by 31% to Rs 93,456 million. Operating Profit
Margin increased from 0.8 % in 2011-12 to 4.7 % in 2012-13. Profit after Tax jumped 270%
to Rs 5421 million.

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Threats

Risk Factors

In the course of its business, Hyundai is exposed to a variety of market and other risks
including the effects of demand dynamics, commodity prices, currency exchange rates,
interest rates, as well as risk associated with financial issues, hazard events and specific
assets risk. Whenever possible, we use the instrument of insurance to mitigate the risk.

Business Risks

The automotive industry is very capital intensive. Such investments require a certain
scale of operation to generate viable returns. These scales depend on demand. Although
2011-12 was year of continued growth for the Indian economy, whether this growth
momentum will continue has to be seen.

4Ps of Marketing

Product

Features:

The all-new Hyundai Pa is fully loaded with a range of exciting new features. It's a
perfect complement to your evolved tastes and lifestyle. And the best way to take your

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driving pleasure to a brand-new high. European Styling. Japanese Engineering. Dream-Like
Handling.

The new Hyundai Pa is a generation different from Getz and Santro design. Styled
with a clear sense of muscularity, its one-and-a-half box, aggressive form makes for a look of
stability, a sense that it is packed with energy and ready to deliver a dynamic drive.

Its solid look is complemented by an equally rooted road presence and class-defining
ride quality. New chassis systems allow for the front suspension lower arms, steering, and
gearbox and rear engine mounting to be attached to a suspension frame. You get lower road
noise and a greater feeling of stability as you sail over our roads with feather-touch ease.

Price

Hyundai is expected to take Maruti heads on with the pricing of their upcoming Hyundai Pa
car. After launching cars for the masses since so many years, Indias second largest
automobile manufacturer is now targeting the premium segment with their latest model from
the Hyundais stable. The analysts predict the pricing of this premium hunchback to start
from Rs. 3 lakh.
This price range would practically rip apart Marutis offering in Zen Estilo, which is
priced at a higher tag of Rs. 3.5 lakh. Both the companies are known for their value based
offerings and Hyundai 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 3 - lakh price tag.
if they indeed do take the chance of pricing Hyundai at a considerable lower price
than Zen Estilo , they would quite likely force the competition to rethink their strategy.

Promotion

Road Shows

The company plans to stage road shows, to display vehicles in the pavilions during
various college festivals and exhibition. This car will appeal to youngsters more.

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Television advertisements
Advertisements to promote and market our product will be shown on leading
television channels. Major music and sports channels will promote and they will reach out to
the youth will be promoted through Star, Zee, Sony and Doordarshan etc as it has more
viewers.

Radio
Radio is the medium with the widest coverage. Studies have recently shown high
levels of exposure to radio broadcasting both within urban and rural areas, whether or not
listeners actually own a set. Many people listen to other people's radios or hear them in public
places. So radio announcements will be made and advertisements will be announced on the
radio about the product features and price, qualities, etc.

Print Ads
Daily advertisements in leading newspapers and magazines will be used to promote
the product. Leaflets at the initial stage will be distributed at railway stations, malls, college
areas and various other locations.

Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people
aware about the companies past performance and product features, its affordability and usage,
vast distribution network. Road shows will be conducted where free trials of the car would be
given.

Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to
promote our brand car.

Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to
read. These booklets will provide information about our company; the products offered which
suits the customers need accordingly.

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Place

Hyundai Has direct contact with the dealers. There are no middlemen involved. The dealers
directly sell to the customers. The channel is of 1st level which has only the dealers as the
link between the customers and the company.

Ansoff Matrix

The Ansoff Matrix was devised by Igor Ansoff, a Russian-born American pioneer of strategic
planning.
Ansoff proposed his Matrix, as a means of identifying how a firm should market its product
in differing scenarios. The labels are listed below:
X-axis
Existing markets
Existing products

Y-axis
New markets
New products

Four quadrants can then be determined, which are:

Market penetration
Diversification
Market development
Product Development

INTERNATIONAL MARKETING

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International marketing can be defined as the application of marketing strategies,
planning and activities to external or foreign markets. International marketing is of
consequence to firms which operate in countries and territories other than their home
country or the country in which they are registered in and have their head office. The
factors influencing international marketing are culture, political and legal factors, a
country's level of economic development and the mode of involvement in foreign
markets. The reasons why a firm would engage in international markets are numerous,
including the maturity within domestic markets or increasing general market share, sales
or revenue.

Product life cycle

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Introduction

As a new product much time will be spent by the organization to create awareness of
it presence amongst its target market. Profits are negative or low because of this reason.

Growth

If consumer clearly feels that this product will benefit them in some ways and they
accept it, the organization will see a period of rapid sales growth.

Hyundai stands on Growth Stage. As the sales of Maruti Zen Estillo is high as
compare to Hyundai Getz then the consumer will buy Hyundai Pa by providing them with
great benefits in future and they will accept it.

Maturity

Rapid sales growth cannot last forever. Sales slow down as the product sales reach
peak as it has been accepted by most buyers.

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Decline

Sales and profits start to decline, the organisation may try to change their pricing
Strategy to stimulate growth, and however the product will either have to be re-modified, or
replaced within the market.

Terracan,Getz,Accent sonata,Verna
Industry

Elantra and Tucson Santro

Relative Market share

BCG Matrix (Hyundai)

STAR
sonata:

Hyundai Sonata (2009) price for the North American market has been announced by Hyundai
Motor America. The price for 2009 Hyundai Sonata starts at 18,00,000. The Hyundai Sonata
GLS powered by the 2.4-liter I4 engine and the 5-speed manual gearbox and goes up to
26,345 for the Hyundai Sonata Limited equipped with a 3.3-liter V6 engine and a 5-speed
automatic gearbox. The 2009 Hyundai Sonata is on sale across the United States at Hyundai.

Verna
Hyundai launched Verna sedan in India during the third quarter (July-Sept.) of 2006,
positioned between its Accent and Elantra models.

CASH COW

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Santro
Santro rated as the Best Small Car and also the Most Appealing Car for two consecutive
years 2000 and 2001.
Santro was also called as Best Fuel Economy making comparisons with petrol-car rivals
like Indica V2, Alto Vxi, Palio 1.2, Zen and WagonR, Santro compared with rivals Indica
Diesel and Palio 1.2 and ranked as the Most Affordable Car in terms of frequently used
spare parts. Its also considered as Most Practical Car and The Best Small Car2002.

QUESTION MARKS
Accent
Accent was targeted at corporate executives and high net worth individuals who were looking
for contemporary technology and value. In a bid to capture 20% of the 60,000 annual mid-
sized car market with Accent in the first year of operations, Hyundai focused on nurturing its
relationship with existing customers, dealers as well as its financing partners like ICICI,
Kotak Mahindra and Citibank.
Getz
In late 2004, Hyundai launched its premium hatchback model Getz, which came equipped
with a 1.3 litre Single Over-Head Cam (SOHC) petrol engine.Getz was available in two
variantsGL and GLS.
The Getz was positioned as a premium hatchback or B plus vehicle between the compact car
and mid-size car segment.

Terracan
On August 5,2003, Hyundai entered the Sports Utility Vehicle (SUV) market segment with
the Terracan. The initial success of Terracan had more to do with an aggressive marketing
strategy than anything else. With sports utility vehicles not exactly taking off in India,
Hyundai decided to focus more on the dealers to sell Terracan than the product. The major
competitors were Forester from GM, Vitara from Suzuki and Honda CR-V.

DOGS
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Elantra
In April 2004, in a bid to garner a sizeable market share in the fast growing executive car
segment, Hyundai launched its sedan Elantra, to compete with similar models from the
stables of Toyota (Corolla) and General Motors (Chevrolet Optra).
Tucson
While Terracan was a full-fledged SUV, Tucson was a milder version that complemented as a
car, an SUV and an MPV. Both the products would therefore co-exist in Hyundais portfolio.
Organizational Structure

Mr. B.S Pai

Chief Marketing
Officer

Ketan Rakesh Arpit

Sales Manager Advertising Promotion
Manager Manager

Manoj Anil Kumar

Advertising Promotion
Analyst Analyst

Deepak
Regional Sales
Manager

Jasvinder
Regional Sales
Manager

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22
LITERATURE REVIEW

Marketing organization

Over the years marketing has grown from a simple sales department into a complex group of

activities. We will examine how marketing departments have evolved in companies how they

are organized and how they interact with other company departments.

The evolution of the marketing department

Marketing departments have evolved through six stages simple sales department sales

department with marketing function separate marketing department modern marketing

department effective marketing company process and outcome based company.

Customer focus

In India, marketing as a discipline has evolved at a leisurely pace, dictated of course by

circumstantial factors. Most market being sellers markets (i.e., where seller dominates over

the customer) until recently marketing philosophy was an alien concept for an India seller. In

a broad sense all markets can be divided into two categories: sellers market and buyers

market. A buyers market is one where due to prevailing intense competition among the sellers

and consequent excess of supply over existing demand the buyer rules over the seller. On the

other hand in a sellers market competition is restricted for any number of reasons. For

example domestic air transportation was sellers market till only Indian airlines was operating.

Now it is a buyers market.

Neil Borden summed them up as marketing mix. Then the prevailing thinking was that it

involved a blend of selling distribution advertising and related skills in the right proportion to

suit the market its time and place. After marketing got separated from the notion of selling the

former now manufacturing and post manufacturing (transportation ware housing

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promotional) costs plus the targeted level of profit margin. Actual price fixing of course

depends on the function features of the product and image of the brand. Then there is the

degree of the competition that dictates the prices of a brand vis--vis its competing brands.

Price can also act as communication tool. For example price package may give the message

of affordability.

We also acquire needs after we are born. These needs are shaped by the environment and the

culture in which we live by our education and by our experiences. The interesting thing about

acquired needs is that there are usually many people who experience the same needs. This

commonality of needs or interest constitutes a market segment enabling the marketer to

design specific product and/ or promotional appeals to satisfy the needs of that segment.

Market segmentation also enables the marketer to very the image of its product so that each

market segment perceives the product as better fulfilling its specific needs than competitive

products.

One of the most important constants among all of us despite our differences is that above all

we are consumers. We use or consume on a regular basis foods clothing shelter transportation

education equipment vacations necessities luxuries services even ideas. As consumers we

play a vital role in the health of the economy local national and international. The purchase

decisions we make affect the demand for basic raw materials for transportation for production

for banking they affect the employment of workers and the development of resources the

success of some industries and the failure of others. There is no question that consumer

behavior has become an integral factor in the ebb and flow of all business in a bustling world

economy.

The term consumer often is used to describe two different kinds of consuming entities the

personal consumer and the organizational consumer. The personal consumer buys goods and

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services for his or her own use (e.g., an electronic notebook) for the use of the household (a

VCR) or as a gift for a friend (a videogame) in each of these context the products are bought

for final use by individual who are referred to as end users or ultimate consumers. The second

category of consumer the organizational consumer includes profit and not for profit business

government agencies (local state and national) and institution (e.g., school hospitals and

prisons) all of which must buy product equipment, and services in order to run their

organizations.

Forecasting and demand measurement

One major reason for undertaking marketing research is to identify market opportunities.

Once the research is complete the company must measure and forecast the size growth and

profit potential of each market opportunity. Sales forecasts are used by finance to raise the

needed cash for investment and operations; by the manufacturing department to establish

capacity and output levels by purchasing to acquire the right amount of supplies and by

human resources to hire the needed number of workers. Marketing is responsible for

preparing the sales forecasts. If its forecast is far off the mark the company will be saddled

with excess inventory or have inadequate inventory. Sales forecasts are based on estimates of

demand. Managers need to define what they mean by market demand.

Company sales forecast

Once marketers have estimated company demand their next task is to choose a level of

marketing effort. The chosen level will produce an expected level of sales. The company

sales forecast is the expected level of company sales based on a chosen marketing plan and an

assumed marketing environment.

The company sales forecast is represented graphically with company sales on the vertical axis

and company marketing effort on the horizontal axis as in. too often the sequential

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relationship between the company forecast and the company marketing plan is confused. One

frequently hears that the company should develop its marketing plan on the basis of its sales

forecast. This forecast to plan sequence is valid if forecast means an estimate of national

economic activity or if company demand is non expansible. The sequence is not valid

however where market demand is expansible or where forecast means an estimate of

company sales. The company sales forecast does not establish a basis for deciding what to

spend on marketing. On the contrary the sales forecast is the result of an assumed marketing

expenditure plan.

A product mix (or product assortment) is the set of all products and items that a particular

seller offers for sales to buyers.

Product classifications

Marketers have traditionally classified products on the basis of characteristics durability

tangibility and use (consumer or industrial). Each product type has an appropriate marketing

mix strategy.

Durability and tangibility

Products can be classified into three groups according to durability and tangibility:

1. Nondurable good are tangible goods normally consumed in one or a few uses like beer

and soap. Because these goods are consumed quickly and purchased frequently the

appropriate strategy is to make them available in many locations charge only a small

markup and advertising heavily to induce trial and build preference.

2. Durable goods are tangible goods that normally survive many uses refrigerators machine

tools and clothing. Durable products normally require more personal selling and service

command a higher margin and require more seller guarantees.

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3. Services are intangible inseparable, variable and perishable products. As a result they

normally require more quality control supplier credibility and adaptability. Examples

include haircuts and repairs.

SALES PROMOTION:

Sales promotion tools coupons contests premiums and the like offer three distinctive benefits:

1. Communication: They gain attention and may lead the consumer to the product.

2. Incentive: They incorporate some concession inducement or contribution that gives value

to the consumer.

3. Invitation: They include a distinct invitation to engage in the transaction now.

Companies use sales promotion tools to draw a stronger and quicker buyer response. Sales

promotion can be used for short run effect such as to dramatize product offers and boost

sagging sales.

Consumer Behavior:

The term consumer behavior refers to the behavior that consumer display in searching for,

purchasing, using, evaluating and disposing of products and services that they expect will

satisfy their needs. The study of consumer behavior is study of how individuals make

decisions to spend their available resources (time, money, effort) on consumption related

items. It includes the study of what they buy, why they buy it, when they buy it, where they

buy it, how often they buy it, and how often they use it. Take the simple product toothpaste.

What types of toothpaste do consumers buy (gel, regular, striped, in a tube, with a pump) ;

what brand (national brand, private band, generic) ; how often do they use it(when they wake

up, after each meal, when they go to bed, or any combination thereof); how often do they buy

it (weekly, biweekly, monthly)

27
28
PRIMARY OBJECTIVES

1. To study the feedback of consumers towards Hyundai motors.

2. To study the factors which played the important role at the time of
purchase.

SECONDARY OBJECTIVES

1. To study post purchase behavior of consumers.

2. To study the impact of age group, income while purchasing the car.

RESEARCH METHODLOGY
29
INTRODUCTION

Research in common parlance refers to a search for knowledge. Research is an art of

scientific investigation and is a careful investigation or inquiry especially through search for
new facts in any branch of knowledge. Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis. Research is an original contribution to
the existing stock of knowledge making for its advancement. It is the pursuit of truth with the
help of study, observation, comparison and experiment.

Research Methodology is a way to systematically solve the research problem .It may
be understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods / techniques but also the methodology. Researchers not only need to know
how to develop certain indices or tests, how to calculate the mean, the mode, the median or
the standard deviation or chi square, how to apply particular research techniques, but they
also need to know which of these methods or techniques, are relevant and which are not, and
what would they mean and indicate and why. Researcher also need to understand the
assumptions underlying various techniques and they need to know the criteria by which they
can decide that certain techniques and procedures will be applicable to certain problems and
others will not .All this means that it is necessary for the researcher to design his
methodology for his as the same way differ from problem to problem. Hence, when one talk
of research methodology he not only consider the logic behind the methods we use in the
context of our research study and explain why we are using a particular method or technique
and why we are not using the others so that research results are capable of being evaluated
either by the researcher himself or by the others.

RESEARCH DESIGN:

30
 Research design is purely and simply the framework or plan for a study that guides
the collection and analysis of data. Infect, the research design is the conceptual structure
within which the research is conducted .It is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure.

Research design includes research study:

a) Exploratory research study

Exploratory research study seeks to discover new relationship through precise

investigation

RESEARCH DESIGN OF THE PROJECT

The research design of this project work has been framed with the aim:

To make the study relevant to the research problem

To study the implications of theoretical knowledge in practical field

DATA COLLECTION METHOD:

For collecting the data concerning the research study, the emphasis was given on the
primary source of data because the aim was to obtain the complete and accurate information
in the said studies.

Tools of data collection:

Communication was used as the basic mean for obtaining the primary data. Following
communication techniques were used for collecting the relevant data for the research study -

a) Questionnaire
b) Personal Interview

31
 A questionnaire was prepared consisting of eight pages comprising the set of six topics .It
included the various questions set on the topics to be studied in the research study i.e. on
Personality Type, Machiavellianism, self esteem, self monitoring, locus of control and job
involvement level.

Questionnaires were distributed to the managers and supervisors and asked to fill the
same (a copy of Questionnaire is attached in appendix).

In some cases, schedules having the format similar to Questionnaire were given to them
and collected in the filled form from them and they were provided with the assistance in
answering the questions.

In personal interview, direct personal investigation method was used in which the information
was collected personally from the sources concerned .The method of Collecting information
through personal interview was carried out in a structured ay .The interview involved the use
of a set of predetermined questions.

The personal interview is widely used to collect information because it helps in collecting
supplementary information about the problem. Moreover the language of the interview can be
adapted to the ability or educational level of the person interviewed and as such,
misinterpretations of the questions can be avoid.

32
SAMPLING PLAN:

Any fieldwork depends on samples; very rarely it is feasible to cover the whole of the market
in an interviewing program. This part of the chapter covers the general principle of sampling,
followed by the researcher to draw samples in the research work.

WHY SAMPLING?

It is very difficult to collect information from every member of a population, as time and cost
are the major limitations that the researcher faces, so sampling techniques was used to avoid
the above limitations.

The three important reasons for sampling:

Reduced Cost: It is obviously more economical to collect the information from a

small number of people only than the whole population.

Reduced Time: Since time was the biggest constraint for the researcher, so it was
not possible to cover the whole.
Higher quality work: by having the interview with a group of people only, in-
depth and high quality work can be carried out.

Size of Sample:

A sample of 100 individuals was chosen on the Non Random Basis.

Area:

ROHTAK

Sampling Technique:

Since it was impossible to collect the data from each and every one as time and cost were the
main constraints in the research study. So it was decided to collect the data from a selected
size of the sample. Hence a sample size of 100 individuals was selected on the basis of Non-
Random Sampling Technique.

33
Analysis and Interpretation:

Data collection through schedules, questionnaires and personal interview resulted in

availability of the desired information. But these were quite useless until they were analyzed.
Various steps, required for this purpose were editing, coding, and tabulating. Editing refers
to inspecting, correcting and modifying the collected data. Coding refers to assigning
numbers or other symbols to answer or placing them in categories to prepare data for
tabulation. Tabulating refers to bringing together similar data and compiling them in an
accurate and meaningful manner.

34
 LIMITATIONS

Limited area.

Limited time period due to regular classes.

Some responses to the questions were abacuses.

Sample was convenience sample.

Some respondent were not willing to give the answer.

35
 SIGNIFICANCE OF THE STUDY

Their main motive is to attract the customers. To attract the customers they providing
extra benefits to the customers i.e. finance , free insurance, free tours, gifts etc. Indian
car industry is trying to bring the dream machine for all type of customers.

Today there is boom in car industry. Many of the car companies are launching new
models within every six month.

Maruti is market leader with his 10 models & big chain of service station &
Dealers.

Tata having 4 models & passenger cars,

Ford has 4 models,

GM has 3 models,

Opel has 4 models,

Fiat has 2 models,

Hyundai has 6 models,

Toyota has 3 models in the market.

36
 FOCUS & SCOPE OF THE PROBLEM

The main focus of my research is to find the satisfaction level of the consumers after
purchasing the Hyundai cars. And if they are not satisfied then find out their problem and
how the problem is solved. My research is based on the consumer post purchase behavior in
Pune city. I will collected the data from the customer of the Hyundai motors in Pune city.

37
38
 SWOT Analysis

STRENGTHS

The Quality Advantage

Hyundai owners experience fewer problems with their vehicles than any other car
manufacturer in India (J.D. Power IQS Study). The Santro was chosen the best in the
premium compact car segment and the Getz in the entry level mid - size car segment across
several parameters. This study measures owner in terms of design, content, layout and
performance of vehicles across several parameters.

A Buying Experience Like No Other

Hyundai has a sales network of 250 state-of-the-art showrooms across 189 cities, with
a workforce of over 6000 trained sales personnel to guide our customers in finding the right
car. Our high sales and customer care standards led us to achieve higher nameplate in the J.D.
Power SSI Study.

Quality Service across 1036 Cities

In the J.D. Power CSI Study Hyundai scored the highest across all 7 parameters: least
problems experienced with vehicle serviced, highest service quality, best in-service
experience, best service delivery, best service advisor experience, most user-friendly service
and best service initiation experience.

The 92% of Hyundai owners feel that work gets done right the first time during
service. The J.D. Power CSI study also reveals that 97% of Hyundai owners would probably
recommend the same make of vehicle, while 90% owners would probably repurchase the
same make of vehicle.

39
WEAKNESSES

Commodity Price Risks

Hyundai commodity price risks to higher costs due to changes in prices of inputs such
as steel, aluminum, plastics and rubber, which go into the production of automobiles.

In order to mitigate these risks, the company continues to attempts to enter into long
term contracts based on its projections of prices. In a volatile commodity market, where your
company gives top priority to ensuring smooth availability of inputs, long term contracts are
helpful. They also help minimize the impact of growing input prices. Conversely, long term
contracts dilute the benefits, if any of a decline in input prices.

Exchange Rate Risk

The company is exposed to the risks associated with fluctuations in foreign exchange
rates mainly of import of components & raw materials and export of vehicles. The company
has a well structured exchange risk management policy. The company manages the
exchange risk by using appropriate hedge instruments depending on the prevailing market
conditions and the view on the currency.

OPPORTUNITIES

Leading Growth

As the market leader, company led the growth in the passenger car sector last year.
Hyundai sales went up 30% to 4,72,000 units. This, as I said earlier, is the highest annual sale
since company began operations 20 years ago. Hyundai also gained market share, mainly on
account of its performance in the competitive A2 segment where it increased its share from
40.3% in 2005-06 to 47.7% in 2006-07. The record sales performance was reflected in the
financials. Net Sales (excluding excise) grew by 31% to Rs 93,456 million. Operating Profit

40
Margin increased from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax jumped 270%
to Rs 5421 million.

THREATS

Risk Factors

In the course of its business, Hyundai is exposed to a variety of market and other risks
including the effects of demand dynamics, commodity prices, currency exchange rates,
interest rates, as well as risk associated with financial issues, hazard events and specific
assets risk. Whenever possible, we use the instrument of insurance to mitigate the risk.

Business Risks

The automotive industry is very capital intensive. Such investments require a certain
scale of operation to generate viable returns. These scales depend on demand. Although
2005-06 was year of continued growth for the Indian economy, whether this growth
momentum will continue has to be seen.

Threats from Competitors

Maruti Udyog Limited

For the fiscal year ended December 2006, Maruti generated revenues of $193,517
million, an increase of 4.3% from the previous year. The company reported a net income of
$2,805 million for fiscal 2005, down 26.6% from the previous year.

Tata Motors Limited

In the 2006 fiscal year, Tata Motors generated revenues of $3,542.2 million
(INR154,935.2 million). The company made a net profit of $185 million (INR8,103.4
million) in the 2006 fiscal year.

Competitors of Hyundai

41
 Ford Motor

General Motors
Toyota
Maruti

GROWTH IN THE MARKET SHARE OF HMIL

In 2012-13

Hyundai motors was launched in India Dec 2012 & in 2012-13 the
market share of HMI was 4% of total market. The major player was MUL with 81% of
market share. HML was on third position after MUL & HM respectively.

12 4
1 2
5

81

Ford Fiat Hyundai Honda HM Telco Maruti GM Daewoo

42
2010-11

In 2010-2011 HMIL griped 13% of total market. Within one year it came at 2 nd position
in the market after MUL with 62% of market share

6 13
13

62

Ford Fiat Hyundai Honda HM Telco Maruti Daewoo

43
2009-2010

In 2009-10 HMIL was still at 2 nd position with 14% of total market share. Now it
was in market with different segment car.
i.e. Santro, Accent, Sonata Gold. Santro was to target small families, Accent was made
to target higher middle class & Sonata was made for higher class.

32
1
14

58 8

Ford Fiat Hyundai Honda HM Telco Daewoo Maruti GM

44
2009-2010

In 2009-10 HMIL was at 2nd position with 15% of market share.Telco was its main
competitor with 11%.

3 4
1
15
2

60
11
1

Ford Fiat Hyundai Honda HM Telco Daewoo Maruti GM

2008-2009

In 2008-2009 HMIL was at 2nd position with 19% of total market share.

45
Analysis & Interpretation

Q1: Is it your 1st car?

Findings:-

1) 60% respondents said that this is their first car.

2) 40% respondents said that they already have used the other brands car.

46
Q2. People having other brands than Hyundais car previously.

Findings

1) 70% of customers were having Maruti previously.

2) 10% of customers were having Tatas vehicle previously.

3) 20% of customers were having other brands vehicle.

47
3: Who played an imp? Role as an influence in purchase of car?

Findings

1) 25% of respondents said they were influenced by friends.

2) 50% of respondents said they were influenced by their family.

3) 7% of respondents said they were influenced by their relatives

4) 15% of respondents said they were influenced by the sales exe.

48
Q4 Who was the initiator to purchase the car ?

Findings

1) The final initiator in purchase of car was family because a family has to use
it because it a family vehicle.

2) Relatives can only give their guidance about the vehicle but the final decision
will be taken by the family & the buyer himself.

49
Q 5: Why did you purchase this car?

Findings

1) 75% of respondents purchased Hyundais car due to comfort & style.

2) 18% of respondents purchased Hyundais car due to power of the vehicle.

50
Q. 6 Who drives the car?

Findings

1) The car is so much comfortable that 45% people drives it by themselves.

2) Hyundais car I liked by young blood because it is very stylish, so 48%

Youngsters drive it.

3) The luxury car i.e. Sonata & Elantra is dived by drivers due to the life style &
status of businessmen.

51
Q. 7 Was there any affect on car purchasing decision due to mode of
payment ?

Findings

1) 96% respondents said that down payment scheme make it easy to purchase
their dream car.

2) 4% respondents said that there no affect on purchase due to mode of payment.

52
Q.8. From where you purchased this car?

Findings

1) 70% of respondents have purchased the car from their local place.

2) 30% of respondents have purchased the car from Delhi as they have their
Business or job, relatives in Delhi. They have the craze to get Delhis Reg. No.

53
Q.9 Did dealers provide any extra benefit to you on purchase of the car ?

Findings

1) 85% respondents said that dealer provided them one year extended warranty,
Insurance.

2) The not fully satisfied respondent gave their ans. in no.

54
Q.10 Do you think promotional efforts like free insurance, extended warranty,
free gifts plays an important role in sale ?

Findings

1) 70% of respondents said yes, it will increase the sale, satisfaction among the
customers, grap new customers & will increase the goodwill of the company.

2) 30% of respondent said that it does not affect so much. The customer will
invest in that thing to whom he thinks is beneficial for him or will give
value for money.

55
Q.11 Are you satisfied with your car?

Findings

1. 80% of respondents were satisfied with their car .They said It is an amazing
pair of wheels with huge comfort zone, making you realize that u are driving in
heaven with the performance, mileage, style, space, features etc.

2. 20% of customers were not satisfied with their car.

56
57
Findings

1. Experience user less prefer Hyundai cars.

2. People want less price cars.

3. Hyundai makes family cars.

4. Youth generation prefers Hyundai cars.

5. Hyundai cars are preferred for comfort & looks.

6. Hyundai cars are mainly sold in urban areas.

7. Hyundai cars are promoted by dealers more.

8. Hyundai cars are not fuel efficient.

9. Prices are not satisfactory.

10. People are not satisfied with the performance like hare gear shifting, noise AC.

11. Customers are very much aware about the product and brands.

12. Maruti is the major competitor of HMIL.

58
59
SUGGESTIONS

After analyzing the respondents views I found that no doubt the company has a very
good image in market. The have positioned the product in the mind of the customers.
People buy their vehicle due to comfort, style, performance. But some customers are
not satisfied due to some reasons. I have some suggestions for the company.

1. They should go for enlargement of service station chins Were ever the customer
goes with his he should feel some one is there to care his car.

2. Problems should be sorted out quickly so that the customer may not feel
inconvenient.

3. After sale of the product the company should take feed back i.e. their vehicle is
performing well or not. It will help in maintaining good customer relations.

4. Sales executives should be trained & they should have the knowledge about the
specification & parts of the vehicle.

5. HMIL should concentrate on mileage of the vehicle because the price of fuel are
very high..

6. HMIL should launch other models than Santro and Getz to attract the middle class family
as Maruti has 5 small cars in market.

7. HMIL should establish a large services network.

8. They should show the feature in the ads rather than using celebrities.

9. HMIL should launch low price vehicles like Marutis 800, Alto.

60
61
Conclusion

IN the ASSIGNMENT we analysis data and find out the conclusion. When I go for survey we
find out that most of consumer purchased cars for comfort and look. Customers are very
much aware about the products and brand. So mainly youth generation prefers Hyundai car.
In the end of the survey I found that most people want less price car. So Maruti is
the major competitor of H.M.I.L... Hyundai cars are not fuel efficient. If in the future
Hyundai motors lower down their price up to certain limit and makes their car more fuel
efficient than they get maximum sale and profit than others.

62
63
 Bibliography

Books

Kothari C.R. : Research Methodology.

Kotler Philip : Marketing Management

Saxena & Rajan : Marketing Management

Journals / Magazines

Sharma V. V Subrahamanya (May 2004) An Application of Attribution in consumer

decision & defence against post purchase dissonance a case study of consumer behavior,
Indian Journal of marketing.

Reddy Dr. D Raghunatha, (Oct.2004) A Study of Passenger car industry in India, Indian
Journal of marketing.

Business Standard Motoring Dec-2004.

Auto India vol. 12. issue no: 9, Feb. 2005.

Websites Links

www.bsmotoring.com

www.hyundai.co.in

www.indiacars.com

www.wheelocity.com

www.overdrive .com

64
www.google.com
QUESTIONAIRE

RESPONDENT PROFILE:

Name _________________________________
Address _________________________________
Age ________________________________
Education Level _________________________________
Occupation : Business

Service

Q. 1 Is it your first car?

1) Yes 2) No

Q.2 If no, which brands car did you have previously?

1) Maruti 2) Tata motors 3) HM

4) GM 5) PAL 6) Fiat

Q. 3 Who played an imp. role as an influencer in purchase of car?

Ans. 1) Family 2) Friends 3) Relatives

4) Sales Executive 5) Any other

Q. 4 Who was the initiator to purchase the car ?

Ans. 1) Your self 2 ) Family 3 ) Relative

65
Q. 5 Why did you purchase this car ?

Ans. 1) Mileage 2) Style 3) Reliability

4) Power 5) Service 6) Comfort

Other : ____________________________________________

Q. 6 Who drives the car ?

Ans. 1) Your self 2) Wife 3 ) Children

4 ) Driver

Q. 7 What was the mode of payment ?

Ans. 1) Full payment 2) Down payment

Q. 8 Was there any affect on car purchasing decision due to mode of payment ?

Ans. 1) Yes 2) No

Q. 9 If yes, what ?

Ans. 1) Make easy to purchase

2) Choosing upper segment car

Q.10 Do you think you got value for money ?

Ans. 1) Yes 2) No

66
Q.11 From where you purchased this car ?

Ans. 1) Local place 2) Delhi

Q.12 Did dealers provide any extra benefit to you on purchase of the car ?

Ans. 1) Yes 2) No

Q.13 If yes, what are they are ?

Ans. _____________________________________________________
______________________________________________________

Q.14 Do you think promotional efforts like free insurance, extended warranty, free
gifts plays an important role in sale ?

Ans. 1) Yes 2) No

Q.15 Are you satisfied with your car ?

Ans. 1) Yes 2) No
Q.16 If no, what are the factors of dissatisfaction ?

Ans. 1) Performance 2) Spare parts 3) Service Station

4) Comfort 5) Other

Other:- __________________________________________
__________________________________________

Q.17 Were you having full information about this brand car or you acquired while
purchasing the car ?

Ans. 1) Yes 2) No
67
Q.18 If no, then from where you acquired information ?

Ans. 1) TV Adds 2) Family 3) Friend

4) Newspaper 5) Magazine 6) Relatives

Q.19 Are the features projected by the company are the actual features of the
company ?

Ans. 1) Yes 2) No

Q.20 If no, where they differs ?

Ans. 1) Mileage 2) Comfort 3) Service

4) Spear parts

Q.21 To whom do you think is the major competitor of HMIL?

Ans. 1) Maruti 2) Tata Motors 3) GM

4) Fiat

Q.24 Any suggestion for any improvement in the car?

Ans. _____________________________________________________________________

_____________________________________________________________________
_____________________________________________________________________

68