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TABLE OF CONTENTS

PREFACE
ACKNOWLEDGEMENT
EXECUTIVE SUMMERY
CH-1 RESEARCH METHODOLOGY
RESEARCH PROBLEM AND OBJECTIVE
DATA SOURCES
RESEARCH APPROACH
CONTACT METHOD
RESEARCH INSTRUMENT
SAMPLING PLAN
LIMITATION
CH-2 INTRODUCTION TO AUTOMOBILE
HISTORY
CLASSIFICATION OF CAR
INDIAN SENARIO IN AUTOMOBILE
GLOBAL SENARIO IN AUTOMOBILE
CH-3 INTRODUCTION TO AUTOMOBILE INDUSTRY
SIZE AND STRUCTURE OF AUTOMOBILE INDUSTRY
MAJOR PLAYRS
SWOT ANALYSIS
PEST ANALYSIS
FIVE FORCE ANALYSIS
MARKET SHARE
CH-4 STP ANALYSIS
SEGMENTATION
TARGETING
POSITIONING
CH-5 ANALYSIS OF PRODUCT STRATEGY
PRODUCT MIX
PRODUCT LINE, FILLING, STRETCHING
LEVEL OF PRODUCT
CH-6 PRICE STRATEGY
TYPES OF PRICING
PRICING METHOD
PRICE STRATEGY BY VARIOUS PLAYERS
CH-7 DISTRIBUTION ANALYSIS
DISTRIBUTION CHANNEL
DISTRIBUTION LEVEL
DISTRIBUTION METHODS
ROLES AND RESPONSIBILITY OF TNTERMEDIARIOS
CH-8 PROMOTION
ADVERTISING STRATEGY
PROMOTION STRATEGY
PUBLIC RELATION STRATEGY
PRSONAL SELLING
CH-9 AN ANYLITICAL STUDY OF CONSUMER BEHAVIOUR FOR
AUTOMOBILE PURCHASE
CH- CONCLUSION AND FINDINGS AND BIBLIOGRAPHY
10

PREFACE
One of the recurrent things in our report has been the Automobile industry in the mind of
consumers. During the past few decades we have leaved in culture that is the evidence of
changing consumer’s preference of automobile and the growing variety of cars in India.

We have chosen to prepare a report on Automobile industry because of its importance


for the consumer and for the Indian economy, we can never underscore how Automobile
industry is important medium of revenue for our nation. At first when we were putting
down our efforts we have no idea what we would have to say through our report but
however we put aside all doubts and begun to examine the past of Automobile industry
that how with the passage of the time Automobile industry has grown and became a
strength for our economy as well as the present scenario, and where future lies of Indian
Automobile industry.

Every industry has struggled to achieve its goals. Generations have given their best to
make life better for their offspring. There is nothing mysterious or hidden about it no
alternative to effort. And yet we fail to follow the winning track. More than the problems
outside – globalization, recession, inflation, instability, and so on – we are concerned
about the inertia that has gripped the Automobile industry psyche, the mindset of defeat.
e believe that when we believe in our goals that what we dream of can become reality
results will began to follow.

In the eight chapters of our report we have introduced you with our work and extent of
our knowledge regarding different concepts of marketing and business environment and
how we have linked theory with the practical issues of Indian Automobile Industry.

ACKNOWLEDGEMENT
While we are of course solely responsible for the content in this report Automobile
industyr. We want to thank several people for their assistance. From the practical study
we have got the experience and improved our knowledge and it provides us guidelines to
perform work in actual situation.

We have thankful to director of our college Prof. Shilpa Shah and Brahmchari Wadi
Trust Institute of Business Administration to providing all the facilities to make this
report and for all encouragement. Firstly we are thankful to the faculty who reviewed
this report and provided us with rich guidance MR BHAUMIK NAYAK.

We are thankful to all those respondents who actively engaged with our research given
their precious time to us. At home we want to acknowledge the support and patience of
our parents during the many hours we spent on working on the report.

Last but not least we are also thankful to our classmates for sharing the information with
us.

EXECUTIVE SUMMARY
Today whole world is of globalization. Even India is developing. We need extra
knowledge, talent, and managerial skills to make our position strong in this competitive
world.
In present condition we must have some practical knowledge in business administration.
In T.Y.B.B.A Program, we study different subjects like Advanced Marketing
Management, Business Environment, and Organization Behavior. In first year we had
industrial visit in second year we had industrial visit and financial project. In third year
we have GROUP PROJECT. In this we take particular industry or company for study.

The theme of GROUP PROJECT is to study an industry or company. If it is Industry than


different aspects of that Industry are surveyed. This is a group project. This project is
based Indian Personal Care Industry.

Through this project it was surveyed that which type of cars people prefer, which are the
different brands in the market, what is the market share of different brands, why people
use Cars, and other determinants of cars.

So, to get that practical knowledge we have surveyed different brands of Automobile
which are also major ones in the market they are Maruti, Honda, Ford, Nissan, Toyota,
etc.

CHAPTER 1:
RESEARCH METHODOLOGY

1.1 Research Objective:


Research objective can be defined as the purpose or motive behind the research which the
researcher tries to conclude some of the major and minor findings.

There are two types of objective in research.


• Primary objective
• secondary objective

(1) PRIMARY OBJECTIVE:-

Our research’s primary objective is to identify the consumer’s preferences and


consumption habit of purchase the car.

(2) Secondary objective:-

• To analyze the situation of automobile market in India.


• To understand competitive framework of Indian automobile industry.
• To analyze the marketing mix strategy adopted by various big automobile
marketers.
• To understand the various internal and external factors affecting Indian
automobile industry.

1.2) RESEARCH DESIGN:-

Research design is also known as framework or blue print of the research.

There are three types of research design.

(1) EXPLORATORY RESEARCH DESIGN:-


Exploratory research design means to find something new that help us to collect
preliminary information and research hypothesis consumption.

(2) DESCRIPTIVE RESEARCH DESIGN:-

Descriptive research design means to describe any situation or information in detail.

(3) CASUAL RESEARCH DESIGN:-

Casual research design means to study the cause and effect relationship of situation.

Here in the market research we have use exploratory research design and descriptive
research design.

We started with exploratory research for the following reasons and ended with
descriptive research by explaining each by each topic in detail.

• To find out scope for the product.


• To find out combination in distribution channel
• To find out effective media channels.

1.3) DATA SOURCES:-

The source from which we get the information or data for research is known as data source.

The researcher can gather primary data, secondary data or both.

(1) PRIMARY DATA:


The data that are freshly gathered for a specific purpose or for a specific research project.
The researcher collects the data on his own without any use of secondary source.

(2) SECONDARY DATA:-

The data which already exists somewhere and it was gathered for some other purpose in
the past. Here we get the information through internet by using different websites and
various related books.

We started our investigation by examining secondary data to see whether the problem
can be partly or wholly solved without collecting costly primary data.

When the required data do not exist or out dated, inaccurate, incomplete or unreliable
then we collected the primary data through various research approaches.

1.4) RESEARCH APPROACH:-

After deciding the data source we will get the information from our respondent that is
consumers. Primary data can be collected in following five ways.

(1) OBSERVATIONAL RESEARCH:-

Fresh data can be collected by observing the consumers when they shop or consume the
products. Important points can be noted down while analyzing the behavior of
consumers.

(2) SURVEY APPROACH:-

It refers to face to face or direct communication with the respondents. In this pre-decided
questions are asked to respondents. It is suited for descriptive research.

(3) FOCUSED GROUP APPROACH:

In this researcher select people who are potential to afford their products. The trained
moderator will ask the questions to the respondents and he will note the important points
regarding his preferences.

(4) EXPERIMENTAL APPROACH:-


In this two mutually exchange groups are selected having similar characteristics, keeping
the same controllable factors and same variables in both groups but providing them
different treatment to observe the differences in their opinion.

Here we have used survey approach to know about consumer’s beliefs, preferences and
satisfaction regarding the consumption of likeness or dislikeness of companies’ car.

1.5 CONTACT METHODS:


In this we decide the methods through which we can contact the respondents to get the
information. Some of them are as follows.

(1) PERSONAL INTERVIEW:

It is a face to face communication with respondents. By this type of interview we can get
the reliable information and researcher is able to complete all the questions. Explanation
is given for the questions which are not understood by the respondents.

(2) TELEPHONIC INTERVIEW:

In this researcher ask questions to respondents on telephone. It is the best method for
gathering information quickly and is less costly also. But in this type of method
researcher cannot get reliable, accurate and correct information.

(3) MAIL QUESTIONNAIRE:

A structured questionnaire is prepared and sends to the respondent. The respondent is


supposed to fill up the questionnaire and back to the researcher. This is very time
consuming.

(4) ONLINE INTERVIEW:

In this type of research we ask the questions to respondents online through chat or E-
mail. Large number of respondents can be covered and it is less costly.

For our research we used personal interview for getting the reliable information from the
consumers. We met consumers of various age groups to know their consumption habit
and preferences related different companies’ car.
1.6) SAMPLING PLAN:-

Researcher uses uses sampling plan to reduce time and cost of research. Few units from
population are selected known as sample.

Sampling plan has following three decisions to be made.

(1) SAMPLING UNIT:

It refers to that who should we survey?

Researchers select the target audience and do the research. For our research our sampling
units are the consumers who are using the cars.

(2) SAMPLING SIZE:

It refers to how many people to be survey?

Sample size should be optimum to do survey to get more reliable results.

For our research sampling size was 300 consumers, of whom 297 are car users and 3 are
non car users.

(3) SAMPLING PROCEDURE:

It refers to how should we choose the respondents?


Sampling procedure is of two kinds:

Probability sampling procedure:


It is used where all the units of population are get known and equal chance to be selected
as samples.

Non probability sampling procedure:


It is used where all the units of population do not get known and equal chance to be
selected as samples.

In our research we used non probability sampling procedure by convenience sampling as


all the units of population do not get known and equal chance to be selected as samples.
1.7) RESEARCH INSTRUMENT:

Basically there are 3 main types of research instrument.

They are: questionnaire


Qualitative measures
Mechanical devices

There are 2 types of questionnaire

(1) STRUCTURED QUESTIONNAIRE:

In this type of questionnaire all the questions are in pre decided format and it is asked in
a logical sequence.

(2) UNSTRUCTURED QUESTIONNAIRE:

In this type of questionnaire questions are ready but not asked in logical sequence.
Researcher can ask any question at any time according to this wish as the format is not
pre decided.

There are 2 types of questions:

(1) Open ended question:


It means where respondents is allowed to answer in his own way by using own words
and sentences. Here freedom is provided to respondents to answer.

(2) Close ended question:

It means where respondents are provided the options and is supposed to answer from
those alternatives only. Here freedom is not provided to respondents to answer.

For our report we have STRUCTURED QUESTIONNAIRE. That includes both


open and close ended type of questions we have used dichotomous questions,
multiple choice questions and rating scale type of questions.
1.8) ANALYSIS DATA:

Analysis of our research is divided into 5 types.

They are:

(1) SCREENING
(2) CODING
(3) DECODING
(4) TABULATION
• GENERAL TABULATION
• CROSS TABULATION
(1) PIE CHARTS

A detailed introduction of automobile aspect is as follows.

(1) SCREENING

Screening involves collection of all necessary information through questionnaire and


then identifies the eligible questionnaires that are useful for research. In this process
we have discriminated the correct questionnaire and conducted our analysis. On the
basis of these error free questionnaires we have conducted the further analysis.

(2) CODING

In the second stage of our analysis we have marked 1 to 300 numbers on the
questionnaires. That means our sample size was 300 respondents. Each and every
question of questionnaire and the options given in each question was also assigned a
code.

Example: Why did you purchase this car?

Good brand image 1

Word of mouth communication 2

Better after sales service 3


Resale value 4

Other please specify 5

In the above example the question is assigned the code as Q-1 and the options given in Q-
1 are assigned 1 to 5 no’s as code.

(3) DECODING:

In this steps of our analysis the same method which we have applied at the time of
coding in the actual questionnaire. In the computer fist of all we have entered 300
respondents as R1, R2, R3….R300 and the questions 1 to 29. These 29 questions
include rating type of questions the options were also considered as a separate
question at the time of decoding.

(4) TABULATION:

In the tabulation we as a researcher have used 2 types of tabulation. They are general
tabulation and cross tabulation.

General tabulation:
In general tabulation we have arranged the data in forms of table for every question.
Likewise income and mode of purchase. This type of tabulation is being prepared
from our side for each and every question in our questionnaire.

Income/LEVEL Cash Finance

less than 30,000 0 0

31,000 to 45,000 0 2

46,000 to 55,000 1 5

55,000 to 70,000 3 3

More than70,000 15 12

Cross tabulation:

We have also tried to articulate the relation two different entities.

Example:
Income of the respondents and the time at which he/she prefers to purchase the car.

Income Different levels


Entery level Executive level Premium level
Less than 30,000 41 11 0
31,000 to 45,000 31 25 2
46,000 to 55.000 43 26 6
55,000 to 70,000 15 22 6
More than 70,000 17 23 27

(5) CHART :

We have also presented the information collected from our side in the form of pie chart
also so that a clear idea about the respondents and the responses given by them can be
obtained.

Example:

1.9) LIMITATION OF THE RESEARCH:

There are certain limitations to be faced while doing these researches.

(1) Time:
It is time consuming as it took nearly 6-7 methods months for data collection primary
survey and analysis of it of 300 sample size.

(2) Cost:
It becomes more expensive due to primary survey done to know the preferences of the
consumers because it requires a skilled people.

(3) Area:
The geographic area was limited to Ahmadabad only. Therefore result may be restrictive
(4) Professional approach:
No technical software is used. So problems and loopholes may found. For the purpose of
analysis we have no used any technical software.

CHAPTER 2:-
INTRODUCTION TO AUTOMOBILE
INDUSTRY

2.1:- History of automobile industry


Horses had dreams of them since time immemorial, but it was only in the 18th century
that the first horseless carriage actually hit the roads. That's not to say that the idea never struck
anyone. Seeds of the idea, in fact, originated long before the first contraption was rolled.

The history of the automobile actually began about 4,000 years ago when the first wheel was
used for transportation in India. Several Italians recorded designs for wind-driven . The first was
Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels. Vaturio
designed a similar car that was also never built. Later Leonardo da Vinci designed clockwork-
driven tricycle with tiller steering and a differential mechanism between the rear wheels.
In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures
led to a variety of new technologies, including the creation of a wheel that turned under its own
power. By the 1600s, small steam-powered engine models were developed, but it was another
century before a full-sized engine-powered automobile was created.
Carl Benz and Gotttlieb Daimler, both Germans, share the credit of changing the transport habits
of the world, for their efforts laid the foundation of the great motor industry as we know it today.
First, Carl Benz invented the petrol engine in 1885 and a year later Daimler made a car driven by
motor of his own design and the rest is history.
Daimler's engine proved to be a great success mainly because of its less weight that could deliver
1000 rpm and needed only very small and light vehicles to carry them.
France too had joined the motoring scenario by 1890 when two Frenchmen Panhard and
Levassor began producing automobile s powered by Daimler engine, and Daimler himself,
possessed by the automobile spirit, went on adding new features to his engine. He built the first
V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest form
of sparking plug. The engines were positioned under the seat in most of the Daimler as well as
Benz car s. However, the French duo of Panhard and Levassor made a revolutionary
contribution when they mounted the engine in the front of the car under a 'bonnet'.
Charles Duryea built a car carriage in America with petrol engine in 1892, followed by Elwood
Haynes in 1894, thus paving the way for motor car s in that country.

2.2 :- History of Indian automobile industry.

The automobile industry in India is the ninth largest in the world with an annual
production of over 2.3 million units in 2008. In 2009, India emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand.

An embryonic automotive industry emerged in India in the 1940s. Following the


independence, in 1953, the Government of India and the private sector launched
efforts to create an automotive component manufacturing industry to supply to the automobile
industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation
and the license raj which hampered the Indian private sector. After 1970, the automotive industry
started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters.
Cars were still a major luxury Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures
with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building


motorcycles and light commercial-vehicles. It was at this time that the Indian government chose
Suzuki for its joint-venture to manufacture small cars Indian automobile industry has grown
leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time.
At present it holds a promising tenth position in the entire world with being # 2 in two wheelers
and # 4 in commercial vehicles

2.3:- Classifications of cars:-


The classification of the cars are majorly on 3 bases i.e. it is mainly divided into 3
parts.
1) *CLASSIFICATION OF CAR ON THE BASIS OF
INCOME*
COMPANY DIFFERENT LEVELS OF CARS
ENTERY EXECUTIVE PREMIUM
MARUTI SUZUKI MARUTI 800 SWIFT DEZIRE GRAND VITARA
LIMITED OMNI VERSA KIZASHI
ECCO SX4
ALTO
WAGON-R
A-STAR
SWIFT
RITZ
ZEN ESTILO
HYUNDAI MOTORS i-10 ACCENT SONATA
i-20 VERNA
SANTRO
GETZ
FORD MOTORS FIGO FIEST
IKON
NISSAN MOTORS MICRA X-TRAIL
VOLKSVAGON POLO JETTA
BETTLE
CHVEROLET SPARK OPTRA CRUEZ
BEAT TAVERA
AVEO
UNO
TATA MOTORS NANO SAFARI
INDICA
INDICA VISTA
FIAT MOTORS PALIO LINEA
MAHINDRA & LOGAN
MAHINDRA LIMTED SCORPIO
XYLO
HONDA MOTORS CITY ACCORD
LIMITED JAZZ CR-V
CIVIC
TOYOTA MOTORS INNOVA CAMERY
COROLLA FORTUNER
ETIOS
SKODA MOTORS FABIA LAURA
OCTIVIA SUPERB
MERCIDES BENZ C-CLAS E-CLAS
S-CLAS
AUDI Q7
Q5
A4
A8
*CLSSIFICATION OF CAR ON THE BASIS OF LENGTH*
SEGMENT LENGTH EXAMPLE
A1 - MINI UP TO 3400 mm M 800
NANO
A2 - COMPACT 3401 TO 4000 mm ALTO
WAGON-R
ZEN
i-10
A-STAR
SWIFT
i-20
PALIO
INDICA
A3 - MIDSIZE 4001 TO 4500 mm CITY
SX4
DEZIRE
LOGAN
ACCENT
FIESTA
VERNA
A4 - 4501 TO 4700 mm COROLLA
EXECUTIVE CIVIC
OPTRA
OCTIVIA
A5 - PREMIUM 4701 TO 5000 mm CAMERY
E-CLASS
ACCORD
SONATA
LAURA
SUPERB
A6 - LUXURY ABOVE 5000 mm S-CLASS
5 SERIES
B1 - VAN OMNI
VERSA
MAGIC
2)
3) *CLASSIFICATION OF CAR ON THE BASIS OF
BODY*
4) HATCHBACK
COMPANY MODEL OF CARS
AUDI CARS A7
M & M LIMITED RENAULT SANDERO
RENAULT MEGANE
CHVEROLET SPARK
BEAT
FIAT PALIO
PUNTO
FORD MOTORS OPEL ASTRA
FIGO
HYUNDAI MOTORS SANTRO
GETZ
i-10
i-20
MARUTI SUZUKI INDIA ALTO
LIMITED WAGON-R
RITZ
ZEN ESTILO
A-STAR
800
SWIFT
NISSAN MOTORS CO. MICRA
LIMITED
TATA MOTORS INDICA
INDICA VISTA
XETTA
NANO
SKODA AUTO INDIA FABIA
PVT. LTD.
VOLKSVAGON POLO
5)
SEDAN
COMPANY MODEL OF CARS
M & M LIMITED RENAULT MEGANE
LOGAN
XYLO
AUDI CARS A4
A8
A6
CHVEROLET OPTRA MAGNUM
OPTRA
CRUEZ
AVEO U-VA
FORD FOCUS
IKON
FIESTA
FIAT INDIA PVT.LTD. LINEA
PETRA
HONDA MOTORS ACCORD
CITY
CIVIC
HYUNDAI ACCENT
VERNA
GETZ PRIME
MARUTI SUZUKI INDIA ESTEEM
LTD. BALENO
SX4
SWIFT DEZIRE
NISSAN LIVINA
TEANA
SKODA LAURA
OCTIVIA CLASSIC
OCTIVIA COMBI
SUPERB
TATA MOTORS INDIGO E-CS
INDIGO CS
INDIGO MARINA
TATA ARIA
TOYOTA MOTORS CAMERY
COROLLA
PRIUS HYBRIDE
VOLKSVAGON PASSAT
JETTA
VENTO
BETTLE
2.4:- Indian scenario of cars

This situation reflected the India of yester years. Economic reforms and deregulation have
transformed that scene. Automobile industry has written a new inspirational tale. It is a tale of
exciting multiplicity, unparalleled growth and amusing consumer experience – all within a few
years. India has already become one of the fastest growing automobile markets in the world. This
is a tribute to leaders and managers in the industry and, equally to policy planners. The
automobile industry has the opportunity to go beyond this remarkable achievement. It is standing
on the doorsteps of a quantum leap.

The Indian automobile industry is going through a technological change where each firm is
engaged in changing its processes and technologies to maintain the competitive advantage and
provide customers with the optimized products and services. Starting from the two wheelers,
trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the
Indian automobile industry has achieved splendid achievement in the recent years.

“The opportunity is staring in your face. It comes only once. If you miss it, you will not get it
again”

On the canvas of the Indian economy, auto industry maintains a high-flying place. Due to its
deep frontward and rearward linkages with several key segments of the economy, automobile
industry has a strong multiplier effect and is capable of being the driver of economic growth. A
sound transportation system plays an essential role in the country’s rapid economic and industrial
development. The well-developed Indian automotive industry skillfully fulfils this catalytic role
by producing a wide variety of vehicles: passenger cars, light, medium and heavy commercial
vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers,
tractors etc.

The automotive sector is one of the core industries of the Indian economy, whose prospect is
reflective of the economic resilience of the country. Continuous economic liberalization over the
years by the government of India has resulted in making India as one of the prime business
destination for many global automotive players. The automotive sector in India is growing at
around 18 per cent per annum.

“The auto industry is just a multiplier, a driver for employment, for investment, for technology”
The Indian automotive industry started its new journey from 1991 with delicensing of the sector
and subsequent opening up for 100 per cent FDI through automatic route. Since then almost all
the global majors have set up their facilities in India taking the production of vehicle from 2
million in 1991 to 9.7 million in 2006 (nearly 7 per cent of global automobiles production and
2.4 per cent of four wheeler production).
The cumulative annual growth rate of production of the automotive industry from the year 2000-
2001 to 2005-2006 was 17 per cent. The cumulative annual growth rate of exports during the
period 2000-01 to 2005-06 was 32.92 per cent. The production of the automotive industry is
expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-
08. The export during the same period is expected to grow over 20 per cent.

The automobile sector has been contributing its share to the shining economic performance of
India in the recent years. With the Indian middle class earning higher per capita income, more
people are ready to own private vehicles including cars and two-wheelers. Product movements
and manned services have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport.

2.5:- Global scenario of cars


The passenger car segment has emerged as a major driving force for upstream industries
like steel, iron, aluminum, rubber, plastics, glass, and electronics and down stream industries like
advertising and marketing, transport and insurance. The car industry generates large amount of
employment opportunities in the economy. For example in the US, every sixth worker is
involved in the making of an automobile.
The global automotive car market is growing at a rate of only 2 percent per annum and is not
expected to pick up in the near term. Growth has dropped due to the increasing levels of
saturation in the larger car markets of the world. Worldwide the trend is towards ensuring that
one's products are superior in terms of quality.
This will enhance the useful life of cars and, hence, slow down growth in sales.The world car
production has increased from 44.66 mn in 1996 to an estimated 48.3 mn cars in 1999. Japan,
Canada and USA brought about the major increases, which contribute to 53% of the world's car
production. The largest car market - the US market expects car sales to decline 8 to 9 per cent to
16 million cars in 2001, as compared to 17.4 million cars sold in 2000.
The USA and Japan are the leaders with around 42% of the total world market. However, since
the last two to three years, the international passenger car industry has been witnessing an over
capacity of more than 30%. The trend suggests that industry volumes may grow by just 2% or
around 10 mn vehicles per year.
If this situation continues for the next few years the world car market may witness shakeout in
the near future. Already signs towards this are being observed as the phenomenon of mergers
catches on. The recent mergers in the international car market are Ford-Volvo, Renault-Nissan,
Daimler-Chrysler. A few more players are expected to join the fray in the next few years so as to
strengthen their hold in the world market. Among the top car manufacturing companies General
Motors and Ford Motors group of USA lead with a contribution of 15.8% and 11.6%, of world
car production, respectively. Volkswagen and Toyota stand third and fourth with more than 9%
contribution each to the world car production.
The global domination of the larger automotive manufacturers is slowly on the wane and the
trend in sales is shifting towards more "regio-centric" products. Automakers that have been
enjoying a generally prosperous spell would have to rethink on the way vehicles are designed,
manufactured, distributed or sold.
Already, players like General Motors Volkswagen and Toyota have begun to re-examine their
dealer relationships and pricing strategies. Car makers would now have to think in terms of a
new customer focus and provide better financing and servicing. Strategic tie-ups, mergers and
acquisitions have become the talk of the day.
A few instances are Daimler Benz's tie-up with Chrysler of the US, Ford's acquiring of Daewoo
and tie up with Volvo Car Corporation and Renault acquiring a stake in Nissan. Such deals will
certainly lead to economy in terms of costs but it remains to be seen whether they will also create
significant new opportunities for growth.
With global consolidation in the car industry, it is expected that more international players will
work closely to bring about operational efficiencies. By nature, the car industry is highly capital-
intensive and vast amounts of money are being spent on R&D. With the players getting together
to produce more technologically superior cars, they can derive greater benefits from their R&D
efforts. Profits, which are under pressure due to wafer thin margins will be boosted due to greater
economies of scale.
The situation could become very difficult for the purely Indian automakers such as Telco,
Mahindra and Hindustan Motors unless they rethink their strategy. It can easily be seen why
TELCO has been in the news on rumors that it wants to hive off its car division and bring in an
overseas partner. Reports suggest that HM is thinking of exporting parts from its manufacturing
units and also assembling and distributing other makes of vehicles who may wish to enter into
India, but cannot enter full scale manufacture due to the small market sizes.

Clearly exports will be the big opportunity for Indian automobile companies if they can control
costs and deliver good quality output. Already Maruti, Hyundai and Ford as well as Mercedes
Benz have started exports in a small way and this can grow. Majors like TELCO and Ashok
Leyland are already exporting their products in reasonable volumes.

Availability of easy financing options has been a major reason for the dramatic growth the
automobile market has witnessed in recent times. Maruti has set up a separate financing unit in
association with banks. GM has one of the largest financing companies in the US and can easily
bring them into India should it so decide.

Chapter 3:-
INTRODUCTION TO INDIAN AUTOMOBILE
INDUSTRY
Introduced to India in the late 1890’s and the manufacturing industry only took off after
independence in 1947.

•Introduced to India in the late 1890’s and the manufacturing industry only took off after
independence in 1947.

•The protectionist economic policies of the government gave rise in the 1950's to the Hindustan
Motors Ambassador.

•Hindustan Motorsand a few smaller manufacturers such as Premier Automobiles, Tata Motors,
Bajaj Auto, Ashokand Standard Motorsheld an oligopoly until India's initial economic opening
in the 1980's.

•The maverick Indian politician Sanjay Gandhi championed the need for a peoples car; the
project was realized after his death with the launch of "people's car"; the project was realized
after his death with the launch of a state-owned firm Maruti Udyog which quickly gained over
50% market share. For forty years since India's independence from the British in 1947, the
Indian car market was dominated by two localized versions of ancient European designs -- the
Morris Oxford, known as
the Ambassador, and a old Fiat. This lack of product activity in the Indian market was mainly
due
to the Indian government's complex regulatory system that effectively banned foreign-owned
operations. Within this system (referred to informally as the "license raj"), any Indian firm that
wanted to import technology or products needed a license/permit from the government. The
difficulty of getting these licenses stifled automobile and component imports, creating a low
volume high cost car industry that was inefficient, unprofitable, and technologically obsolete.
The two dominant products Ambassador and Fiat, although customized to the poor road
conditions in India, were based on a stale design concept (with outdated features), and were also
fuel inefficient.
In the early 1980's, the Indian government made limited attempts at reforming the automotive
industry, and entered into a joint venture with Suzuki of Japan. The joint-venture, called Maruti
Udyog Limited, launched a small but fuel efficient model (called "Maruti 100"). Priced at about
$5,500, the product became an instant hit. The joint venture now produces three small-car
models, a van, and a utility vehicle at a rate of more than 250,000 a year. Despite being a late
entrant, Maruti's vehicles are estimated to account for as much as 70 per cent of India's car
population.
In 1991, a newly elected Indian government took over and faced with a balance-of-payments
crisis initiated a series of economic liberalization measures designed to open the Indian economy
to foreign investment and trade. These new measures effectively dismantled the license raj which
had made it difficult for Indian firms to import machinery and know-how, and had disallowed
equity ownerships by foreign firms. In 1993, the government followed up its liberalization
measures with significant reductions in the import duty on automobile components. These
measures have spurred the growth of the Indian economy in general, and the automotive industry
in particular. Since 1993, the automotive industry has been experiencing growth rates of above
25%. Data for the 1995-96 financial year is yet to be released by all the firms, but estimates
indicate that passenger vehicle sales may reach or exceed 350,000 for the first time. (Passenger
vehicles include cars and vans but not jeeps.) Table 1 presents the production data of passenger
vehicles for the top four Indian assemblers. Foreign vehicle sales have been insignificant until
the 1994-95 year.

3.1:- Size and structure of Indian automobile industry


At present the industry is enjoying a growth rate of 14-17% per annum, with domestic
sales growth at 12.8%. The growth rate is predicted to double by 2015.

As it is seen, the total sales of passenger vehicles - cars, utility vehicles and multi-utility
vehicles – in the year 2005 reached the mark of 1.06 million. The current growth rate indicates
that by 2012 India will overtake Germany and Japan in sales volumes.

Financing schemes have become an important factor in the growth of automobile sales. More
and more financial schemes are coming up with easy installment plans to lure the customers.

Apart from domestic production, the industry is consistently focusing on the automobile exports.
The auto component segment is contributing a lot in the export arena. The liberalized policies of
the government are now making the companies go for more and more exports.

The automobile exports are increasing year by year. According to the Society of Indian
Automobile Manufactures (SIAM) automobile exports in the last five years are as
:
Export trend over the last five years

NEW LAUNCHES
The Indian automobile sector is experiencing changes in every arena. Changes in the looks of the
vehicles are taking place; the vehicles are being made more user-friendly. Each and every firm is
competing to give the customers more customized vehicles with respect to speed, mileage, and
maintenance. At present there are many new models entering the Indian market. To name a few,
Suzuki Heat 125 and Suzuki Zeus 125X are the two bikes in the motorcycle segment; Kinetic
Blaze and Honda DIO in the scooter segment; Maruti, Zen Estillo in the car segment, so on and
so forth.

EMPLOYMENT IN THE SECTOR


Investment is leading to the employment growth in the sector. With the emergence of new
projects and introduction of technological advancements, the focus is more on the skilled and
experienced human resource. The companies are looking for skilled and hard working people
who can give their best to the organization.

The engineers in the automotive or electrical or mechanical field are in demand. Some of the
firms going for automation, i.e. planning for CAD (Computer Aided Designs) systems, are also
recruiting people with IT specializations.

3.2:- Major players


• Tata
• Mahindra
• Ashok Leyland
• Bajaj
• Hero Honda
• Daimler Chrysler
• Suzuki
• Ford
• Fiat
• Hyundai
• General Motors
• Volvo
• Yamaha
• Mazda

3.3:- SWOT analysis of Indian automobile industry


Introduction
The overall evaluation of company’s strength, weakness, opportunities and treats collectively
called as SWOT analysis. The environment may give many opportunities but the business may
not have strength to cope up with it.

Similarly, sometimes a company will not have strength to meet the environment treats. It is very
necessary for a company to monitor its external environment to know the opportunities and treats
and internal environment to know the strength and weaknesses.

Here the internal factors are controllable and external factors are not controllable.

Now, let’s discuss about the SWOT analysis in detail. Following are the points to be discussed:-

1)Strength:-
Strength are the positive areas of the company that the will help the industry to get strategic
advantage over the competitors. Following are some points to be discussed in strength:-
(A) Capacity of manufacturing:-

During the recent year many development took place in the Indian automoboile industry like
development of infrastructure facility, advance machinery, developed human resource, expert
enginers.

Domestically, some consolidation or alliances might be expected, driven by the need for
access to better technology, manufacturing facilities, service and distribution networks. The
components sector is in a strong position to cash-in on India’s cost-effectiveness, profitability
and globally-recognized engineering capabilities. As benefits of collaborations become more
apparent, super-specialists may emerge in which the automobile is treated as a system, with each
specialist focusing on a sub-system, akin to the IT industry. Though this approach is radical, it
could prove an important step in reducing complexity and investment requirements, while
promoting standardization and meeting customer demands. Manufacturers are already planning
for the future: early advocates of technological and distribution alliances have yielded generally
positive results, enabling domestic OEMs to access global technology and experience, and
permitting them to grow their ranges with fewer financial risks.

(B) Competitive advantage:-


The Indian automobile industry have gained the competitive advantage over the other
automobile industry by gaining the good HR power as India is one of the fastest growig economy
of the world and with growing economy population is also increasing over here. As being one of
the fastest growing economy the standard of living of people over is also incresing which results
into the increasing demand of the luxury product like cars.

(C) Unique selling:-


The customer of India are not aware or not informative about the services of the automobile
in the past. But now the scenario has changed totally the companies of India have used various
majors steps to develop the awareness. They have adopted the unique selling concept by which
the market has developed fully.

(D) Resources:-
With the increasing demand of the cars in the Indian market, the continuous supply of raw
material is very necessary . In India all those resources are available to the manufacturer so it
helps in the development of the Indian automobile industry. Resources in the sense of Human
Resource, raw material, auto parts & components are available to them easily.

(E) Financial background:-


The financial background of the Indian automobile industry is becoming strong. By the
entering of the new foreign companies in the Indian market and establishing of many financial
institution in the market the availability of the finance is becoming continuous so the production
is also becoming continuous. On the other side from the prospective of the customer also the
availability of finance provides the credit facility to the customer.

(F) Experience:-
The companies of the Indian automobile market are gaining the experience over the period
of years. New and new foreign companies are also entering in the Indian market like skoda,
wolksvagon, etc which gives the teach to the Indian companies also. So by new experence they
serving the market with great expectation.

(G) Distribution:-
By the passing of time, the distribution channel of the Indian automobile industry is
becoming strong. For ex:- Ford India when entered the Indian market have weak distribution
channel and does not have any chain of showroom in Gujarat for the starting 3 years. Bt now
overall all company are focusing on the distribution channel.

(H) Revolution
• Green Revolution:

In a price conscious economy such as India’s, the shift towards green vehicles will be
slow unless spurred by Government mandates. Although the major players are already equipped
with the necessary capabilities to develop cleaner vehicles, They do not see much merit in
commercializing these technologies until the green revolution gains momentum most likely
through Changes in political legislation and it achieves the market scale required for commercial
viability. Manufacturers are placing greater faith in dual-fuel technologies than in battery
powered alternatives because the necessary support infrastructure, such as recharge stations, is
not yet in place for the widespread adoption of the latter. The launch of electric motorcycles
Could have a significant impact on the market, given that motorcycles account for the majority
of two-wheeler sales in India. Manufacturers of four-wheelers and commercial vehicles in
particular stress the importance of optimizing conventional combustion engines before
experimenting too radically with costly new technologies.

(I) Quality comparison:-


In the market many types of cars are available so the customer gets the base for comparison.
Among all the major type of cars the customer get the vast base to select the model of car which
best suit to them and they can make the comparison between them about it’s quality and various
other parameter’s.
(j) small cars :-
In India the lowest expensive & luxurious cars are available. The Tata nano was the world’s
cheap car available in India. Also the electronic cars are also available.

2) Weakness:-
Weakness are the negative area of the company which arises because of the internal
defect of the industry. Weakness are such factor on which the company have full control.

Lets discuss all the point in detail:-

(A) Dependency on the other countries:-


Though many innovation took place in the model but still the product are not up to the
mark. The low quality product are made as the innovation is still less in this sector. So still India
is dependent on other countries for technological advancement.

(B) Weak research and development:-


Though develop market is there thhe financial facility is still not so strong compare to other
country. So the research and development is also not so fledge.

(C) High investment cost:-


The entry in the market proves to be very expensive because the market is still not
developed well so the resources are available at a higher cost.

(D) Old technology:-


The financial need is not well fulfilled so the companies are sill using the old tecnologies.
This old technologies give less output also the quality differs.

(E) Lack of innovation:-

In Indian market no such major innovation had took place. Major companies are making
collaboration with the foreign companies for the technology . thus the Indian automobile industry
lack in the technological sophistication.
3) Opportunities
The opportunity is staring in your face. It comes only once. If you miss it, you will not get it
again.

(A) Industrial trend:-


Car manufacturers in India dominate the passenger vehicle market by 79%. Maruti Suzuki
is the largest car producer in India and has 52% share in passenger cars and is a complete
monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share. Hyundai and
Tata Motors is the second and third car producer in India. “The auto industry is just a multiplier,
a driver for employment, for investment, for technology” The Indian automotive industry started
its new journey from 1991 with delicensing of the sector and subsequent opening up for 100 per
cent FDI through automatic route. Since then almost all the global majors have set up their
facilities in India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006
(nearly 7 per cent of global automobiles production and 2.4 per cent of four wheeler production).

(B) Market development:-


The cumulative annual growth rate of production of the automotive industry from the year
2000-2001 to 2005-2006 was 17 per cent. The cumulative annual growth rate of exports during
the period 2000-01 to 2005-06 was 32.92 per cent. The production of the automotive industry is
expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-
08. The export during the same period is expected to grow over 20 per cent.

(c) Innovations:-
India is up-and-coming a significant manufacturer, especially of electrical and electronic
equipment, automobiles and auto-parts. During 2000-2005 of the total FDI inflow, electrical and
electronic (including computer software) and automobile accounted for 13.7 per cent and 8.4 per
cent respectively.the new 28 models are coming of different companies in the market.

(E) Global trends:-


The passenger car segment has emerged as a major driving force for upstream industries like
steel, iron, aluminum, rubber, plastics, glass, and electronics and down stream industries like
advertising and marketing, transport and insurance. The car industry generates large amount of
employment opportunities in the economy. For example in the US, every sixth worker is
involved in the making of an automobile.

(F) Developing markets:-


As the automobile industry has matured over the past decade, the auto components industry
has also grown at a rapid pace and is fast achieving global competitiveness both in terms of cost
and quality.

In fact, industry observers believe that while the automobile market will grow at a measured
pace, the components industry is poised for a take-off. For it is among the handful of industries
where India has a distinct competitive advantage. International automobile majors, such as
Hyundai, Ford, Toyota and GM, which set up their bases in India in the 1990s, persuaded some
of their overseas component suppliers to set up manufacturing facilities in India.

(G) Cost of manufacturing:-


The value of cumulative output of the auto components industry rose rapidly to Rs 30,640
crore at end-2003-04 from just Rs 11,475 crore in 1996-97. Foreign companies such as Delphi,
which followed General Motors in 1995, and Visteon, that followed Ford Motors in 1998, soon
realised the substantial cost advantage of manufacturing components in India.

Finding the cost lower by about 30 per cent, they began exploring the possibility of
exporting back these low-cost, high-quality components to their global factories and, thus,
reducing their overall costs. Not surprisingly, the industry's exports registered a more than four-
fold jump to Rs 4,800 crore in 2003-04 from just Rs 1,033 crore in 1996-97

Automobile majors such as Maruti Udyog, Toyota, Hyundai have now finalised their plans
to invest in some of the critical auto components. According to the Automotive Component
Manufacturers Association of India (ACMA) officials, auto component manufacturers are
expected to invest about Rs 10,000 crore over the next five years at the rate of Rs 2,000 crore per
annum.

(H) Increase in the income :-


The bumper-to-bumper traffic of global automobile biggies on the passage to India has
finally made government sit up and take notice. In a bid to drive greater investments into the
sector, ministry of heavy industries has decided to put together a 10-year mission plan to make
India a global hub for automotive industry.

(I) Increasing export level:-


In fact, industry observers believe that while the automobile market will grow at a
measured pace, the components industry is poised for a take-off. For it is among the handful of
industries where India has a distinct competitive advantage. International automobile majors,
such as Hyundai, Ford, Toyota and GM, which set up their bases in India in the 1990s, persuaded
some of their overseas component suppliers to set up manufacturing facilities in India.

4) Threats
Threats are the external factors which are effecting the industry. Threats are the negative factor
which effects company outside environment.

(A) Vulnerable competitors:-


Evidently, Indian players have learnt from past mistakes and developed the skills to build
cheaper automobiles using `appropriate' technologies. TVS, for instance, paid an overseas source
$100,000 to fine-tune home-grown engines rather than $1.5 million to import the entire engine.
Similarly, M&M adapted available systems and off-the-shelf components from global suppliers
to keep costs down and go for aggressive pricing. True, Indian players are still lacking in scale of
operation. While economies of scale no doubt play an important role in the auto sector, a few
Indian manufacturers relied on innovation rather than scale of operation for competitive
advantage. For instance, Sundram Fasteners was able to achieve the feat of directly supplying
radiator caps to General Motors purely on the strength of innovation in product quality. The
domestic tooling industry bagged the order for the Toyota Kirloskar transmission plant in the
face of stiff competition from multinational corporations. The cost of the entire job turned out to
be only a fraction of the original estimate.

(B)Recession:-
Unfortunately, during the global meltdown in 2008, auto companies suffered a double
whammy with rapidly rising oil prices and escalating raw material costs coupled with a drastic
drop in demand of their fuel guzzling SUVs due to changes in consumer buying habits. As
consumers tightened their purse strings, many looked for more fuel efficient, smaller cars while
others re-evaluated their private vehicle usage, deciding to switch to public transport and
delaying their auto purchases. As a result, many leading manufacturers, including the American
‘Big Three’ (Chrysler, Ford and General Motors) and Japan’s Toyota suffered major losses and
were forced to seek government assistance, shut down manufacturing plants, retrench large
numbers of workers, re-organize their line-ups and offer substantial discounts across their
existing ranges.

(C) Import liberalization:-


The Indian economy gives the opportunity for the development of Automobile industry.
There are no restriction on imports on major of the spare parts. So it becomes favorable
condition for the automobile industry to develop.

(D) Social activation:-


In spite of this there are opportunities to exploit lower costs right across the board. It’s true
that labour costs are definitely increasing but they are still five per cent of the total operational
costs. The labour costs can be further reduced if companies are successful in bringing down other
costs like reducing power costs. Low-cost base can never last long. The company said Indian
industry has till now relied on very labour intensive model but it would have to switch to a more
capital intensive model now.

(E) healthy competitors:-


India’s expedition to become a global auto manufacturing hub could be seriously challenged
by its inability to uphold its low-cost production base. A survey conducted by the research,
KMPMG firm reveals that the Indian auto component manufacturers are increasingly becoming
skeptical about sustaining the low-cost base as overheads including labour costs and complex tax
regime are constantly rising.

3.4:- PEST analysis


*PEST ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY*
POLITICAL ENVIRONMENT

♦ Favorable government policy:-


Indian government auto policy aimed at promoting an integrated, phased and conducive
growth of the Indian automotive industry. The govt. is providing the incentives and the tax
benefits to the manufacturer.

♦ Increasing foreign investment:-


Allowing automatic approval for foreign equity investment up to 100 per cent, with no
minimum investment criteria. The FDI had increased the rate of investment thus sounds to be
the favorable for the development of the automobile industry.

♦ Affordability:-
Establish an international hub for manufacturing small, affordable passenger cars as well
as tractors and two wheelers. The

♦ Stable economy
Ensure a balanced transition to open trade at minimal risk to the Indian economy and
local industry.

♦ High resources:-
Assist development of vehicles propelled by alternate energy sources.

♦ Favorable taxation policy:-


Laying emphasis on R&D activities carried out by companies in India by giving a
weighted tax deduction of up to 150 per cent for in-house research and R&D activities.

♦ Favorable insurance policy:-


Plan to have a terminal life policy for CV along with incentives for replacement for such
vehicles.

♦ Developing transportation services:-


Promoting multi-modal transportation and the implementation of mass rapid transport
systems.

ECONOMICAL ENVIRONMENT

♦ Growing economy:-
The Indian economy has grown at 8.5 per cent per annum.

♦ Growing automobile sector

The manufacturing sector has grown at 8-10 per cent per annum in the last few
years.India's robust economic growth led to the further expansion of its domestic automobile
market which attracted significant India- specific investment by multinational automobile
manufacturers.[3] In February 2009, monthly sales of passenger cars in India exceeded 100,000
units.

♦ Good credit facility:-

Finance availability to CV buyers has grown in scope during the last few years.

♦ Increasing govt. investment:-

The increased enforcement of overloading restrictions has also contributed to an increase


in the number of CVs playing on Indian roads.

♦ Foreign trade:-

Several Indian firms have partnered with global players. While some have formed joint
ventures with equity participation, others have entered into technology tie-ups.

♦ Investment on manufacturing:-

Establishment of India as a manufacturing hub, for mini, compact cars, OEMs, and for auto
components.

SOCIAL ENVIRONMENT
♦ Urbanization :-
Growth in urbanization, 4th largest economy by PPP index.

♦ Increasing income:-
Upward migration of household income levels.

♦ Increasing share of compact car:-


Increase in PPP, led to the increase in market share of compact cars.

♦ Good credit facility:-


85% of Cars are financed in India (15% in China).

♦ Wide variety of passenger car:-


Vehicles priced between USD 7000 –12000 form the largest segment in the passenger car
market.

♦ Savvy consumer:-
Indian customers are highly discerning, educated and well informed. They are price
sensitive and put a lot of emphasis on value for money.

♦ Social Value:-
Preference for small and compact cars. They are socially acceptable, even amongst the
well-off.

♦ Middle class
Preference for fuel efficient cars with low running costs. The Tata Indica has the lowest
running cost at US 8.5 cents per mile.
India has emerged as one of the world's largest manufacturers of small cars. According to
New York Times, India's strong engineering base and expertise in the manufacturing of low-
cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several
automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki

TECHNOLOGICAL ENVIRONMENT
♦ Import Technology:-
With the entry of global companies into the Indian market, advanced technologies, both
in product and production processes have developed.

♦ New methodology:-
With the development or evolution of alternate fuels, hybrid cars have made entry into
the market.

♦ Development in R&D
Few global companies have setup their R&D centers in India.

♦ Investment by foreign competitors:-


Major global players like Audi, BMW, and Hyundai etc have setup their manufacturing
units in India.

♦ Government initiated investment:-


Government initiatives regarding tax rebates have led to global players setting up their
R&D centers in India.

♦ Government initiated technology:-

Govt. initiatives in establishing NATRIP network across the country will further lead to
enhancing R&D and technological advancements.
3.5:- Porter’s 5 force analysis

A Porter's Five Forces Analysis explores five principal industry factors to determine the
attractive of a given industry in a given market. In this P5F exercise, we look at the automobile
industry in India. This is independent of any manufacturer. As such, it applies to every Indian car
manufacturer.

1) THREAT OF NEW ENTRANT


In most markets, the capital and expertise needed to setup an auto or parts
manufacturing facility would be a great enough barrier to entry to prevent many new entrants
from setting up.
However, given India's incredible growth forecasts, infrastructure progress (especially new and
better roads), and ever-expanding financing options to rural residents, the market is attractive. As
such, we expect the threat of new entrants

1) GOVT. POLICY

The Government of India has liberalized the foreign exchange. Government has liberalized the
investment norms for the auto sector. Local content requirements and export obligations have
been scrapped, and minimum investment requirements also have been diluted. Import duties on
vehicles and parts have been gradually coming down and are expected to decline further in the
next two years. Several state governments also offer attractive incentives, such as sales tax
relaxations and concessional land, to potential investors. However, manufacture of certain
components continues to be reserved for the small-scale sector. This reservation is also expected
to lift gradually over the medium term.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive
of making India the most popular manufacturing hub for automobiles and its components in
Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the
domestic as well as international arena.

So the entry of any new firm can enter into the market easily as govt. policy is moderate
towards the automobile industry.

2) MONOPOLY

The domestic players as well as the foreign players dominate the Indian automobile sector. The
key players contributing to the growth of the sector are discussed below. The key players in
Indian automobile industry are:

1) Maruti Udyog Limited

2) Tata Group

3) Mahindra Group

4) Hyundai Motors India Limited

5) Toyota Kirloskar Motor Private Limited

6) Honda Siel Cars India Limited

7) Ford motors private limited

8) Skoda motors private limited

From above we can see that there are many competitors in Indian market for new entrant so if
they plan to enter the Indian market new innovative idea and proper focus should be design
3) CAPITAL REQUIREMENT

As per as the capital requirement is concern for automobile industry the requirement of capital is
very huge. So to enter in the automobile industry company new to much difficulty because to
establish the plant lay out, machinery, hr is too much difficult for the company.

4) PRODUCT DIFRENTIATION

The Indian automobile sector is experiencing changes in every arena. Changes in the looks of the
vehicles are taking place; the vehicles are being made more user-friendly. Each and every firm is
competing to give the customers more customized vehicles with respect to speed, mileage, and
maintenance. At present there are many new models entering the Indian market. To name a few,
Suzuki Heat 125 and Suzuki Zeus 125X are the two bikes in the motorcycle segment; Kinetic
Blaze and Honda DIO in the scooter segment; Maruti’s Zen Estillo in the car segment, so on and
so forth.

Thus, if any new entrant comes in the market they should emerge with the product
substitutingon.

E.g.: Companies are coming with new design of cars of exterior as well as interior , with great
fuel substitute, and many innovation are developed.

5) ECONOMIES OF SCALE

While quite a few new vehicles launched in the Indian market have been developed locally,
vehicle affordability significant concern. Although the price of an average motorcycle in India
(about USD 900) is comparable to the average per capita income, the prices of passenger cars
have a long way to go.

Although the entry level car (Nano) is priced at around USD 2,500, the passenger car Market
could grow multi –fold if the raise break-through of another price level in the Years to come.

John Flintham, global CEO of Amtek Auto, believes four-wheelers are particularly well placed
to take advantage of these changing trends. “If you look at the Tata Nano, people. Buying two-
wheeler bikes who have a bit more disposable income and can now afford To buy a car instead. I
think you’re going to see a doubling of sales over the next three To four years and I think that’s going to
be driven by both domestic demand and by India becoming a small car export hub.”

The Indian automobile industry is going through a phase of rapid change and high growth. With new
projects coming up on a regular basis, the industry is undergoing technological change. The major players
are expanding their plants and focusing on mass customization, mass production, etc.
2) Bargaining power of buyer’s
Buyers in India have a wide variety of choice. There are more than 20 foreign manufacturers
selling in India (including ultra high-end such as Rolls-Royce and Lamborghini). Of course there
are also a plethora of incredibly cheap choices, like the famous Tata Nano.

This situation arises when the buyer gain the power of bargaining. Following
are some of the situations in which bargaining power by side of buyer arises.

1) Volume of purchase
If the volume of purchase is high by the buyers side than the bargaining power of the
buyer would increase substituting. In automobiles substitute mainly the buyers general
customer.

2) Importance of product to buyer’s


If the product is more important to the customer than the customer will surely buy the
product, but if the product is not more important to the customer they can substitute it. In context
of automobile the bargaining power of buyer is less. Cars are one of the luxurious products
whose consumption can be substitute for the future time. Thus if the economy is in boom period
there must be growth in the automobile substitute & in recession the market goes down. For ex.
In the recession period of 2008 the automobile substitute goes tremendously down.

3) Switching cost to marketer:-


The switching cost to the marketer explain that if one customer also switch to the
competitors product how much the producer is effected. In context of automobile it
doesn’t effect much to the producer. Thus switing cost effect’s is low.

4) Extent of buyer’s information


Extent of buyer information shows that if the co. r more the customer have more
bargaining power but if co hour less than bargaining power is less.
In automobiles industry the bargain in power of customer is high. They are
gaining lots of information.

5) Ability of buyer for backward integration


. The backward integration means the customer have to power n to switch the
backwardness / integration they have more power. In automobile customer have high
backward integration power
For eg. Customer can buy swift than i10 or i20.
3)Bargaining power of supplier’s
It is likely that the suppliers to the manufacturers have considerable bargaining power. They are
not held ransom by one single manufacturer as they can market their products to any of the
others in India.

1) Importance of product to buyer

If the supplier of raw mat. Or components are less the producer have to suffer delay in
production if the raw mat. Cant be generated from any other sources.
So if supplier of raw material is not continuous n customer have no other mode than they have
less bargaining power.

2) Switching cost to supplier

If there are many supplier of raw material so the bargaining power of manufacturer
increases. For ex:- sonakoyo is supplying the raw material to the maruti but if maruti switch to
the other supplier than it will effect more to the sonakoyo company. Thus the if company change
it’s source of rawmaterial company than that company would be effected more.

3) Potential for forward integration

Forward integrating shows that if the manufacturer have power of providing its own raw material

4) Ability of substituting the product

It shows that if manufacturer have almost of components or raw mat. They have high bargaining
power. In automobile the substituting product is less.

(4) Rivalry amongst existing firms


The key players in Indian automobile industry are:
1) Maruti Udyog Limited
2) Hero Motors Limited
3) Tata Group
4) Bajaj Auto Limited
5) Mahindra Group
6) Ashok Leyland
7) Yamaha Motor India
8) Hyundai Motors India Limited
9) Toyota Kirloskar Motor Private Limited
10) Honda Siel Cars India Limited

1)Growth of industry
The automobile industry is one of the biggest growing industry in Indian country. Since last five
years is a golden year for growth of Indian automobile industry because the companies like
Nissan,volksvagon are coming and launch different model of car in india. As per the new recent
data in 2009-10 there are 88 different cars going to enter in Indian automobile market.as the
government policy is also in the favour of the growth of automobile industry.

Maruti Suzuki- new swift

Hyundai-new verna

Toyota-etios liva

Tata-nano diseal

Mahindra-mini xylo etc. .

Cost structure

There are two types of cost which are as follows fixed cost and variable cost in automobile
industry both goes are high. But the tata nano has introduced new one lacks rs car which was
design specially by emphasizing on cost structure.

2) Product standardization
As the passing of time new and new innovating technology are upcoming in Indian automobile
market which provide better quality of cars and standards product to the customer for example
Nissan, Chevrolet ,bmw, Audi. They are the company coming out with new diff car design
style, fuel efficiency, n data performance.

3) Exit Barriers:-
It show that when company wants to exits out of the mrket there can be problem.
5] Threat of Substitute:-
1) Extent of Substitution:-
If one ve to buy vehicle then they ve option of purchasing car ,two wheeler etc. but if they decide
to buy car only then less option r available to them.

2)Importance of Product:-
The car are gaining importance in Indian market now a days. Before it was consider as status
symbol for the person but now it was become the basic need product to travel from one place to
another through it has not much gain importance as per the europian market.

3.6:- Market share:-


At present major Indian, European, Korean, Japanese automobile companies are holding
significant market shares. In commercial vehicle, Tata Motors dominates over 60% of the Indian
commercial vehicle market. Tata Motors is the largest medium and heavy commercial vehicle
manufacturer.

Among the two-wheeler segment, including scooters and mopeds- motorcycles have- major
share in the market. Hero Honda contributes 50% motorcycles to the market in which Honda
holds 46% share in scooter and TVS makes 82% of the mopeds in the country. In the three
wheeler industry in India, Piaggio holds 40% of the market share. Bajaj is the leader by making
68% of the three-wheelers.
Car manufacturers in India dominate the passenger vehicle market by 79%. Maruti Suzuki is the
largest car producer in India and has 52% share in passenger cars and is a complete monopoly in
multi purpose vehicles. In utility vehicles Mahindra holds 42% share. Hyundai and Tata Motors
is the second and third car producer in India.
Chapter 4:-
SEGMENTING, TERGETING AND
POSITIONING

SEGMENTATION
Segmentation is the process of grouping people or organizations
within a market according to similar needs, characteristics, or
behaviors which might require separate products or marketing
mix.

Segmentation is about identifying and targeting customer groups


through their needs and wants, as well as determining which
customers and needs to address and with what manner and
intensity".
Definition
Process of defining and sub-dividing a large homogenous market
into clearly identifiable segments having similar needs, wants, or
demand characteristics. Its objective is to design a marketing mix
that precisely matches the expectations of customers in the
targeted segment.
The segmentation of cars is based on the cost & size of the car.
Typically entry level cars like the Maruti 800, Alto, Omni fall in the
A segment.

Slightly expensive hatchbacks like the Indica, Santro, Wagon R,


I10 etc. fall in the A segment.

Cars like the GM SRV, Ford Fusion, Skoda Fabia fall in the
premium B segment.
The sedan category form the C segment which comprises entry
level cars like the Indigo CS, Mahindra Renault Logan and Esteem.

The higher end C segment is made up of Honda City, Chevrolet


Aveo, and Ford Fiesta etc.

Then comes the D segment which comprises entry level cars like
the Skoda Octavia, Toyota Corolla etc.

The higher end of the D segment comprises of the Toyota Camry,


Honda Accord, and Skoda Superb etc. So it’s all a game of the
price and the features.
The above chart shows how different products in the same segment/sub
segment have been offered by the same company targeting different needs
of the buyers.

For ex: Maruti offers a car, Alto which low on price, maintenance cost, style
but is high on fuel efficiency. When you compare this with Maruti swift, it is
higher in price (in the small car), technology, style, space and comfort, but
lower in fuel economy. Maruti has a gamut of cars in the small car market,
as it has off late focused on creating new sub-segment or creates deep
segmentation within a segment.
Segment invasion plan – Maruti Udyog limited

Dark color indicates competition existed at the time when Maruti


targeted the segment

1. M-800 had dominated the Indian car market since it was


launched in 1984.

2. Maruti introduced Maruti Zen into the market (in 1993) which catered as an
entry level car for the people who can afford to spend more (as
compared to M-800), with better features available. Maruti
enjoyed being the only small car manufacturer till year 1996,
when Hyundai launched Santro.

3. In the mean while Tata also launched Indica, and there was a gradual
decrease in sales of M800. The Introduction of new cars by
competitors made the M-800 look obsolete as it had not
been changed in any major way for over a decade. Hence
Maruti launched Alto in the year 2000, trying to recover the
lost market. Alto was once again targeting the entry level
low cost segment, but it gave features of a good car. Within
18 months of the launch, the Maruti was able to regain its
market share and was once again in a position to hold entry
level A-segment in its pocket.

4. Watching the dominance of Maruti in the A-segment, competitors focused


on other segments, Maruti also followed and launched its first Duo
car, Wagon R duo in the year 2004. This car could be run on
LPG along with petrol.

5. In an effort to move beyond the value for money or the basic utilitarian
function of a car, Maruti launched Swift in the year in 2004, to
target the high end customers, who are willing to pay more
for a better styled, safe, sporty car.

6. Maruti strengthened its position in the small car market by launching Ritz in
the year 2009 , which was targeting upper middle income
group ,who were looking for exciting looking globally
renowned car.

TYPES OF SEGMENTATION

1: GEOGRAPHIC SEGMENTATION

Geographic Segmentation calls for dividing the market into


different geographical units such as nations, states, regions,
countries &cities etc.

A.REGION:
The major regions for small car market in India are north, south, and west. The most auspicious moths
in the south, when buyers, laterally lap up cars from the showrooms, often turn out
to be the lean season in the north or west. So marketers need to identify when to
market a product according to the region in which the consumer lies.

B.RURAL/URBAN:

Since more than 60% of the total population is living in interiors, it becomes all the more
important to cater to this segment. However, so far, the marketers
have laid more focus on Urban/semi urban market and their products
are primarily catering to the needs of the urban segment. But with the
recent market hits, the companies are trying to pay more attention the
rural market segment to gain profits.

Ex: Maruti Suzuki India said that by the end of 2009 calendar year
as much as 8 per cent of sales will come from rural areas, up from
3.8 per cent last year.

Ex: Tata Magic which is priced @ 2.6lacs is primarily targeted to


the rural India.

2: DEMOGRAPHIC SEGMENTATION
Demographic segmentation consists of dividing the market into
groups based on variables such as age, gender family size,
income, occupation, education, religion, race and nationality.

As you might expect, demographic segmentation variables are amongst the most
popular bases for segmenting customer groups.
This is partly because customer wants are closely linked to variables such as
income and age. Also, for practical reasons, there is often much more data
available to help with the demographic segmentation process.
The main demographic segmentation variables are summarized
below:

a.Age & life cycle stage:

Student, Young Married, Single working.

The average age profile of a car buyer is 25-46 years. Although


the percentage of people buying cars between 31 and 40 years of
age has remained stagnant at 31 per cent (1999-03), there has
been a 9 percentage point increase in the number of car buyers in
the 25-30 age groups. The number of older people (51 to 60 plus)
buying cars has gone down.
For ex: the car likes swift ,i-20 , beat are mostly like by the people
who are come in the age of 25 to 35 people.
The car like verna, optra, city, accord, accent, swift dezire are
mostly like by the executive people who are ranging from 35 to
50 people.

b.Family Size:

Average Indian household size is 5 people. Hence Small cars are


the most obvious and affordable choice available for the Indian
middle class.

For ex:

Maruti had come out with different cars o the basis of family size
like
Class according to family Model
size
Lower class people Maruti 800

Omni
Middle class people Alto

Swift

Ritz

Zen Estillo

A-star
Upper class people Grand vitara

Maruti kizashi

C.INCOME:

Higher income households tend to be less price-sensitive, placing a higher value on


buying Higher-quality merchandise. Because of the growth in dual-
income households, there has been a dramatic growth in the
proportion of total spending in the economy coming from such
households, implying that the market for high-end products and
services should increase substantially. Thanks to the easy
availability of cheap financing options, there has been an increase
in the number of younger people buying cars in India during
1999-2003EMI: a factor affecting the most of the buyers. 3 out of
the 4 cars sold in the country are funded by a loan.

For ex:
The companies like Maruti Suzuki, Tata motors, Chevrolet. And
Hyundai are mostly targeting the lower income and middle
income class people.

While on other side the companies like BMW, mercedez Benz, and
Skoda are targeting the elite class and upper class people who
have their own business and higher salary.

d. Occupation
Occupation of the consumer affects the buying power. For ex: A Regular
salaried employee will easily get finance done for buying a car , whereas a
self employed consumer will opt for full down payment option. This explains
the reason for high contribution from salaried and self employed people in
buying small cars

For ex:
People who have higher position in their occupation and who have large
amount of salary are mostly prefer to purchase BMW, audi, beentle, nissan,
mercidiz benz.

3:Psychographic segmentation

Psychographic segmentation is sometimes also referred to as behavioral


segmentation.
This type of segmentation divides the market into groups according to customers’
lifestyles.
It considers a number of potential influences on buying behaviors, including the
attitudes, expectations and activities of consumers. If these are known, then
products and marketing campaigns can be customized so that they appeal more
specifically to customer motivations.
The main types of psychographic segmentation are:

Lifestyle –
Different people have different lifestyle patterns and our behavior may change as
we pass through different stages of life. For example, a family with young
children is likely to have a different lifestyle to a much older couple whose
children have left home, and there are, therefore, likely to be significant differences
in consumption patterns between the two groups. One of the most well-known
lifestyle models, the “sagacity lifestyle model”, identifies four main stages in a
typical lifestyle:
• Dependent (e.g., children still living at home with parents);
• Pre-family (with their own households but no children);
• Family (parents with at least one dependent child); and
• Late (parents with children who have left home, or older
childless couples).
Each group is then further subdivided according to income and occupation.
For ex: life style are different from person to person a person who have a great
personality they are using the cars like BMW, ROLS ROYAL, AUDI, BENZ.

Opinions, interests and hobbies –


This covers a huge area and includes consumers’ political opinions, views on the
environment, sporting and recreational activities and arts and cultural issues. The
opinions that consumers hold and the activities they engage in will have a huge
impact on the products they buy and marketers need to be aware of any changes.
Good recent examples include the growth of demand for organic foods or products
that are (or are “perceived” to be) environmentally friendly
Degree of loyalty –
Customers who buy one brand either all or most of the time are valuable to firms.
By segmenting markets in this way, firms can adapt their marketing in order to
retain loyal customers, rather than having to focus constantly on recruiting new
customers. It is often said that it is ten times more profitable selling to existing
customers than trying to find new ones. So the moral is – work hard at keeping
your customers. In this now days no one person are loyal for any one company
because now a days different company are coming out with different car they are
purchasing the car according to their capability, income , comfort and other
variables.
Occasions –
This segments on the basis of when a product is purchased or consumed.
Weekly basis. Marketers often try to change customer perception of the best time
to consumer a product by promoting alternative uses for a product. In India people
are mostly like to purchase the car on some occasions like diwali , rakshbandhan,
dashera etc.

Benefits sought –
This requires marketers to identify and understand the main benefits consumers
look for in a product.
For ex: now a day there is a great problem occurred in securities of royal class car
the people are expecting different facility like air bags, power window, gps system,
music system,nion lights facility in their cars.

3 Behavioral segmentation

Behavioural segmentation divides customers into groups based on the way they
respond to, use or know of a product.
Behavioural segments can group consumers in terms of:

a.Decision Roles:
When it comes to car, where huge investment is involved, people
generally tend to take reference from other users. They go for
test rides, get it checked from some experienced people who are
much more comfortable about cars. For that reason noe a days
companies are providing test drives so that customer are easily
take the decision regarding purchase any car.

b.Occasions:
In India, people do buy cars in the festival season, and during the
marriage seasons.

c.Benefits:
Consumer looks for the following benefits from a car.

I. Power:

People do look for power from power.According to their need they


look for cars intheir respective power basket (i.e. 600cc – 1300cc)
A higher power is related to give higher speed, acceleration by
the consumers.

Distribution of households (owning a car) by income

Distribution of household (owning a car) by literacy%

For ex: maruti Suzuki come out swift which has a 1300cc
engine with four cylinders.
Ii .Technology:

With all sort of products available in the small cars market,


technology can act as A differentiator for consumer. New
technologies such as MPFI (multi point fuel injection), turbo charging,
electronic traction control, anti locking braking systems, and catalytically
converters.

Iii.Fuel Economy: People do look for better fuel economy in terms


of mileage given by the car. Preferred Fuel: With the rise in petrol
prices, people have been looking for alternatives such as diesel,
CNG, LPG. Many car buyers in India prefer the diesel variant
whatever may be the choice of car, because of the favourable
cost differential diesel

For ex: Hyundai come out with kappa engine then maruti
fit k series engine in their all cars.

Market targeting

A specific group of consumers at which a company aims its


products and services

Target Marketing involves breaking a market into segments and


then concentrating your marketing efforts on one or a few key
segments.
Target marketing can be the key to a small business’s success.

The beauty of target marketing is that it makes the promotion,


pricing and distribution of your products and/or services easier
and more cost-effective. Target marketing provides a focus to all
of your marketing activities

Maruti is now planning to enter the D segment of cars with its


new offering Kizashi. Expected to be launched in the early 2011.

The multi-utility vehicle (MUV) category is growing fast in India. It


has made many car makers in the country plan production of the
same. Maruti Suzuki, Tata Motors and Skoda Auto are planning to
enter the growing segment of MUVs. Tata Motors has plans to
launch Tata Aria. The vehicle is develop."

"Skoda Auto has advanced its small car launch by more than a
year and is now targeting a rollout in 2011.Skoda Auto India
operations head and board member (sales & marketing) Thomas
Kuehl said the decision to advance the small car launch by 2011.
"

Auto maker Volvo is planning to launch two new models in India


within a year. The cars will be targeted at the premium segment
of the market. The company is likely to launch its sports utility
vehicle Volvo XC60 in next 6-7 months. Volvo S60 is also
expected to be launched this year. “
Different targeting pattern

1) PRODUCT SPECIALISATION
M1 M2 M3

P1

P2

P3

HERE FIRM SPECIALISE IN A PARTICULAR


PRODCUCT CATEGORIES IN ALL MARKET.
HERE FIRMS ARE PRODUCING THE PRODUCT FOR
THE DIFFERENT CLASS OF CONSUMER.
FOR EX:
MARUTI IS SPECIALISE IN 4 WHEELER CARS.
MARUTI HAVE A CARS FOR ALL KIND SEGEMENT
OF CONSUMERS like they have maruti 800, omni
are made for lower class of consumers.
The cars like alto, Wagno-r, swift,a-star,ritz are
made for middle class of consumers.
The cars like grand vitara, newly launched
kizashi are made for upper class of consumers.
2)market specialization
m1 m2 m3

P1

P2

P3

Here marketer are targeting one class of


consumers. They have a product for only one
segment of consumers.
For ex:
The companies like mercedez
benz,audi,BMW,bentle,rols royal are targeting to
the higher level of consumers.
POSITIONING
When the list of target markets is made, a company might want to start on
deciding on a good marketing mix directly. But an important step before
developing the marketing mix is deciding on how to create an identity or image of
the product in the mind of the customer. Every segment is different from the
others, so different customers with different ideas of what they expect from the
product. In the process of positioning the company:
Small cars have been positioned in India as city cars, which are
easy to drive, give high mileage, with low operational cost and
low price. Because of the tremendous growth in the small car
market, various global car manufacturers are entering this market
and thus leading to growing competition. This has further led to
each manufacturer positioning it, better than the rest; by
upgrading products, several versions, new technology giving
discounts & offers, better financing options.

Positioning – Hyundai Santro Case

Hyundai Motors shows that a company has repositioned its


product about 5 times in past ten years. The main factors were
either competitors’ activities or changes in the mindset of
consumers. Each time the company has repositioned itself, they
have changed their ‘Target customers’ and has done a deeper
penetration in segmenting its market.
The average age of a car owner had declined from around 35-40
three years ago, at that time, to 25-30, primarily because of
changing lifestyles, cheap and easily available finance, etc
Age group of 25-30 years and First time buyers.

Positioning – maruti Suzuki case


Earlier maruti have no more car in the middle class
segment for that maruti come out with different
cars like ritz, a-star, swift etc to get a maximum
market share in the market.

Different strategies.
1)product differentiation
you design your product in different way in
terms of technology, features etc.
for ex:
Hyundai first come out with kappa technology in
the Indian automobile market.
Now a days companies are likely to provide the
air bag in the cars which provide safety to the
consumers.

2)service specialization
you should provide service in different manner
than your competitors.
For ex:
As per as the service differentiation is concern
Maruti Suzuki provide extremely good after sales
service than the competitors. They have a
largest service network in the Indian automobile
sector.

3)people differentiation
differentiation in knowledgeable employees. As
per as the people differentiation is concern all
the automobile companies have good and
knowledgeable EMPOYEES TO COMMUNICATE
WITH THE PEOPLE.

4)channel differentiation
as per as the channel differentiation is concern
there is no differentiation has been seen in the
automobile sector.

5)image differentiation
certain brand customer can identify product
easily, colure shine, symbol. As per as the image
differentiation is concern all the companies have
different symbol so that customer can easily
identified the companies.
For ex:
4.4:- Differentiation Strategies:

1)Product differentiation strategies


Brand can be differentiated on the basis of a number of different products.
Product different in colour, size, packing, features, performance, quality, style and design
as well as such service.
In automobile industry major car model are different from each other in sense of their
design, interior look, mileage, performance, etc
Ex:- Some cars are MUV, SUV, hatchback, notchback and sedan are different type of
cars which are based on different type of body, performance, miledge, etc.
2)Personnel differentiation strategies
Better trained personnel exhibit six characteristics:
They possess the required skill and knowledge
They are friendly, respectful and considerate creditability.
They perform the service.
They respond quickly to customers.
They easily understand to the customer.
In automobile industry the companies people are different. Employees are effective tool
for the customer satisfaction. So the people or employee must be trained, skilled and
effective much to provide the better service to consumer.
Ex:- the employee of maruti company are well trained and they are providing better
service to the customer than other companies in the market.

3)Channel differentiation strategies


Companies can achieve competitive advantage through the way they design their
distribution channels, coverage, expertise, and performance.
In automobile industry also the all companies are using the different ways for
distribution. The different ways also gives the advantage to the marketer.
Ex:- the distribution method which was used by the ford that same strategy cannot be used by
the tata or Mahindra or any other company.

4)Image differentiation strategies


Buyers respond differently to company and brand Images. Identity and image need to be
distinguished.
Image is the way the public perceives the company or its products.
It establishes the product’s character and value proposition.
It conveys this character in a distinctive way.
It delivers emotional power beyond a mental image.
The image differentiation explain that the image in the mind of customer are different so
to achieve the better position or place in the mind of the customer the marketer should adopt the
better strategy to convey the customer and be on top in the mind of the customer.
Ex:- the maruti is considered as the which provide the better services.

Honda is providing qualitative cars. BMW are the luxurious cars.

Chapter 5:-
ANALSIS OF PRODUCT STRATEGY
ANALYSIS OF PRODUCT STRATEGY

PRODUCT MIX

MARUTI SUZUKI

Entery level Executive level Premium level


➢ Maruti 800 SX4 grand vitara
➢ Wagon-r Swift Dezire new kizashi
➢ Maruti eeco esteem
➢ A-star Baleno
➢ Omni
➢ Alto
➢ Estillo
➢ Swift
➢ Ritz

HYUNDAI

Entery level Executive Premium


level level

➢ Santro Xing Accent sonata


➢ Getz Verna Terracan
➢ I-10
➢ I-20

TATA

Entery level Executive Premium


level level

➢ Nano indigo Cs indigo marina


➢ Indica Manza
➢ Indica vista Safari
➢ Indica Xeta Aria
➢ Indica v2 turbo

TOYOTA
Entery level Executive Premium
level level

➢ No One Innova Camery


Corolla Fortuner
Etios Prado

CHEVROLET

Entery level Executive Premium


level level

➢ Beat Optra Cruez


➢ Spark Tavera
➢ Uno Aveo
➢ Uva

HONDA

Entery level Executive Premium


level level

➢ Bravio City Accord


Jazz Cr-V
Civic

VOLKSWAGAN

Entery level Executive Premium


level level
➢ Polo Passat
Jetta
Vento

FORD

Entery level Executive Premium


level level

➢ Figo fiesta Endeavour


Ikon Fusion

PRODUCT LINE
Product line length:
It can be defined as group of product which has similar characteristics same usage pattern fall in
to similar price range and can be distributed through similar distribution channel. As per as
product line is concern there is no difference seen in usage pattern but there is very huge
difference between the price, distribution channel and characteristics of different companies.

Line stretching:
Every company’s product line covers a certain parts of the total possible range. For ex BMW
automobile are located in the upper price range of the automobile market.

Line stretching occurs when companies lengthen its product line beyond its current range. The
company can stretch its line down market, up market, or two way market.

1) Upward line stretching:

Companies may wish to enter the high end of the market for more growth, higher margin, or
simply to position themselves as full line manufacturers. Here in line stretching Strategies
Company is catering to the lower segment or middle segment and it launches the product for
upper level consumer or middle level consumer.

For ex: earlier Maruti Suzuki doesn’t have any car in upper level segment they are only
targeting to the lower and middle level segment but now they have car like grand vitara and
kizashi for upper level segment.

2) Downward stretching:

In this line stretching strategy, companies having a product for the upper class people and they
will launch the product for middle people it is called downward stretching.

For ex: earlier Mercedes Benz was targeting only upper level segment but now they are come out
with e-class for the middle level consumers rather than s-class and c-class.

3) Two way line stretching:

In this strategy company is targeting to middle level consumer but now it launches the product
for upper level as well as lower level both the customer.

For ex: recently Honda decided to come out with Honda Bravio for the middle segment of people
where as they have also car like Accord, CR-V for upper class and city, civic and jazz for the
middle level consumers.

LINE FILLING:
Line filling can be defined as adding more products in the same product category for same types
of consumers without making any big changes in target segment it is known as line filling.

For ex: Maruti product line:-

Maruti 800 Lower Class Segment


Omni
Alto
Wagon-R
A-star
Estillo Middle Class Segment
Swift
Ritz
Swift dezire
Grand vitara
Sx4 Upper Class Segment
Kizashi
Here in above example of line filling earlier Maruti Suzuki has only few cars in the middle level
segment but in the recent year Maruti come out with different cars like a-star, Estillo, swift, Ritz,
swift dezire to get a maximum no of market share in the Indian automobile industry.

Levels of product:
1) CORE BENEFIT:

The fundamental level is core benefit. The service or benefit that customer is really buying is
known as core benefit.

Customer prefers air bags for safety its core benefit given by the company to the consumers.

For ex: the companies like Mercedes Benz, BMW, Audi are providing the air bag facility to the
customers for their safety its call core benefit.

2) ACTUAL PRODUCT:

The marketer must turn the core benefit into basic product without basic product marketer cannot
provide the core benefit to customer.

3) EXPECTED PRODUCT:

It’ combination of attribute and features that customer normally expected while consuming
product.
4) AUGMENTED PRODUCT:

It’s that exceeds customer expectation .customer enjoy the services. Customers enjoy the car
driving and service provided by the companies and place higher level of satisfaction.
For ex:

Maruti Suzuki has a largest and wide network in after sales service. They have maximum service
centre in India so that customers enjoy its services and place higher level of satisfaction.

5) POTENTIAL PRODUCT:

Products, which does not existence in the market but expected in future. Add something new,
innovative in Indian automobile industry which is not available but provide in future

For ex:
Customer will expect GPS system in their car so that they can easily know that how far they are
away from their desire place.
chapter 6:-
PRICING
Definition:

Pricing strategy refers to methods com. use to price their products or


services.

Pricing strategy methods:


To set the specific price level that achieve their pricing objectives, managers take
various types of methods for pricing.

1 Cost plus pricing:

It sets the price at the production cost plus a certain profit margin.

2 Target return pricing:

In this method, the firm will yield the target on investment. It is used by automobile
com. to achieve the target.

* it is used by public utilities which need to make a fair return on investment.

3 Value

Types of pricing:
1 Discount pricing:

In the discount pricing, the com. offers different types of discounts to the
consumers. In auto mobile industry, the different com. give different discount in the
cars prices. Generally, the consumers are interested in low price and high service in
quality in their cars. Though they buy lower level cars they want the same quality of
services as in the high level cars. They want better services.
For ex: Tata motors are always charging lower price than the maruti Suzuki to get
the maximum market share from the market.

2 skimming pricing:

Here when company launches the car at that time they decide the price to target
the higher level of consumers then after satisfied the need of the upper level
customer they are catering to the middle level of consumers.

*high class level cars include Honda city, cvr, accord, civic Chevrolet cruze captive,
optra.hundai sonata etc.

3 loss leader pricing:

Loss leader pricing means low price. The object of this pricing is low cost for lower
level customers. Low price customers are generally unable to buy or to purchase
high class cars. The objectives of this strategy are to attract a large no. of
customers. Some supplementary services are offered at a very low price.

For ex: Maruti Suzuki

Pricing strategy methods:


To set the specific price level that achieve their pricing objectives, managers
take various types of methods for pricing.

1 Cost plus pricing: It sets the price at the production cost plus a certain profit
margin.

2 Target return pricing: In this method, the firm will yield the target on investment.
It is used by automobile com. to achieve the target.

* it is used by public utilities which need to make a fair return on investment.

3 Value based pricing: Several com. have adopted value pricing in which they win
loyal customers by charging a fairly law price for a high quality offering..
4 Psychological pricing: It bases the price on factors such as signals of products
quality, popular price points and what the customer perceives to be fair.

5 Mark up pricing: It is to add a standard mark up to the products’ cost.

*Construction com submit job by estimating the total project cost & add a standard
mark up for the profit.

6 Auction type pricing: It is becoming more popular specially with the growth of the
internet.

7 Group pricing: Consumers and business buyers can join groups to avail a volume
discount

Types of pricing:
1) Discount pricing:

In the discount pricing, the com. offers different types of discounts to the
consumers. In auto mobile industry, the different com. give different discount in the
cars prices. Generally, the consumers are interested in law price and high service in
quality in their cars. Though they buy lower level cars they want the same quality of
services as in the high level cars. They want better services.

For ex:-

The company provides discount offers at any special day or any special occasion or
any special festival

2) skimming pricing:

it means high price target of skimming price is to satisfy the needs of high class
level customers.

high class level cars include Honda city, cvr, accord, civic Chevrolet cruze captive,
optra.hundai sonata etc.

3 ) loss leader pricing:


loss leader pricing means law price. The object of this pricing is law cost for lower
level customers. Low price customers are generally unable to buy or to purchase
high class cars. The objectives of this strategy is to attract a large no. of customers.
Some supplementary services are offered at a very law price. Generally, Tata com
keeps their car prices much lower than maruti because it has much more higher
profit margin. So it gives lots of discount to their customers to attract them.

Chapter 7:-

DISTRIBUTION
7.1:- Distribution channel and level
Marketing channel distribution:
Marketing channels can be defined as set of interdependent organizations involved in the process
of making product or services available for use or consumption to the concern customer.

Levels of marketing channel:

There are mainly two different types of the level which involved in the distribution channel.

1) Level for consumer product


2) Level for industrial product

1) Distribution channel for consumer product

Consumers’ goods are those goods which are purchased by the final consumer for the personal
consumption.

According to the consumer products there are different level for the consumer goods which are
as follows.

• Zero level channel.

MANUFACTURE CONSUME

In zero level channels nobody involved in between the manufacturer and the final consumer so
that here the finished goods and product are direct supplied by manufacturer to the consumer.
Here in Indian automobile industry zero level channels are not applicable. Because if company
using this channel then co will require huge amount of capital and no of requirement of people is
also increase so that cost of production is increase per unit.

• One level of channel

MANUFACTURE RETAILOR CONSUME

In one level channel there are only one intermediary in between manufacturer and consumer.
Generally this kind of channel is mostly use in Indian automobile industry.

For ex. The companies like Mercedes Benz is German based co it have a production unit in
Germany but it also available in India with the help of retailer like cama motors to the final
customer.

Maruti Suzuki production plant is located in gurgaun and it all cars are available in allover India
through retailers like Kataria motors, Kiran motors, and Manan motors etc to the final consumer.

Hyundai motors plant located at Dehradun but with the help of retailers like landmark Honda,
planet Hyundai it is available to the final consumer,

The co Audi, BMW, Volkswagen, Tata motors are also using one level channel to provide the
product to the final consumer.

2) Distribution channel of industrial goods.

As per as the Indian automobile industry is concern different companies are getting components
like tires, glass, wiper and other related components which are require in the manufacture of the
car from the different distributer.

• Zero level channel

INDUSTRIAL
MANUFACTUR CONSUMER

Industrial consumer use not used the product for final consumption but for the purpose of further
production process. Levels are depends upon the size of the company.

For ex. The companies like Bosch, Capro, Delphi, Denso, Ficosa (Mnc), Johnson control etc are
provided raw material to Tata for production of Tata nano at sanand. And the company like MRF
provide tyre facility to the Maruti Suzuki which is one of the biggest tyre company in india.
MARKETING FLOW
Distribution channel perform certain specific function payment in delivery of goods are
functions and the functions moves are as follows.

1) Forward
2) Backward

1) physical flow

This is a kind of flow where physical products are transported. In Indian automobile industry the
physical flow are as under.

supplier warehouse Technological


warehouse

dealer showroom customer

In physical flow, the cars raw material like many types of bolts and spear parts steels etc. are
collected the stored and as per requirement send to technician for building the car, then after the
complete process it is send to the dealer then to showroom and then to final consumer. Its flow
process is forward.

2) title flow
In title flow the ownership is transfer from one to another intermediaries.

supplier manufacture dealer customer

In automobile industry the ownership of raw material is transferred to


manufacturer then to dealer finished goods are provided and then finally to the
customer enjoy the products.
3) payment flow
Payment flow is always reverse in automobile industry because here in payment
flow customer payment is not directly reaching to the manufacturer. It was paid
firstly by the showroom dealers. Its flow are downward which are as follows.

Supplier Bank Manufacturer Bank Dealer

Customer
Here in payment flow each and every company has to get downward flow.
4) Promotion flow

Supplier Advertisemen Manufacturer Advertisemen Dealer


t t
Cost

In Indian automobile industry different companies are using


different promotional tools in a various promotional steps like discount on
festivals.
Chapter:- 8
PROMOTION

8.1:- Advertising strategy


Promotion is an activity when in a marketer attract the consumers and convince the consumers
for purchase your product. As per as the promotion is concern in Indian automobile industry
different companies are using different kind of mode to promote their products in the market
they are as follows.

1) ADVERTISEMENT:-
Advertising is any paid form of no personal presentation and promotion of ideas, goods or
services by an identified sponsor. Ads can be cost-effective way to disseminate message,
whether to build a brand preference or to educate people.

In developing an advertising program, marketing managers must always start by identifying the
target market and buyer motives. They can have five major decisions they are as follows

1. MISSION - What are the objective?


2. MONEY – How much is the budget?
3. MESSAGE – what is our brand stands for, and what is our message to the customer?
4. MEDIA – what media should we use?

The decision of selecting among various media majorly depends upon the mission money and
message that company wants to deliver to the customers,

1) MISSION

An advertising goal is a specific communication task and achievement level to be accomplished


with a specific audience in a specific period of time. The mission changes with the change in
culture and life style of the people in the society. For example the ad which worked in 90’s can’t
work today message communication methods are modernized as time moves.

In the automobile industry all the companies brands are well established so that companies main
aim Is to reinforcement advertising that is by showing different car advertisement again and
again so that it will help the customer is to make a right choice of the car which is suitable to that
lifestyle and personality.

• Mission of Maruti Suzuki

Maruti Suzuki is a manufacturer of different level cars that is entery level, executive level,
premium level. Their main aim is to provide car to the customer with a beautiful, sophisticated
machines that embody technological perfection, low maintenance cost, better after sales service.
Our success is built on our core values of creativity, commitment and enthusiasm, and keeping
our customers’ desires at the heart of everything we do. Their main aim is to come out with the
different innovation to satisfy the need of the customer.

• Mission of BMW

The core values of BMW Financial Services are:

* Uniqueness through diversity


* Leadership
* Teamwork
* Involvement in community
* Mutual respect
* Associate growth & development
* Taking risks
* Excellence through quality & innovation
* Courteous
* Responsive

• Toyota’s mission
Create continuous process flow to bring problems to the surface. Uses “pull" systems to avoid
overproduction. Level out the workload. Build a culture of stopping to fix problems, to get
quality right the first time. Standardized tasks
1) MONEY

Due to the competition and clutter in the Indian automobile industry all the automobile players
are require to spending lots of amount behind the advertising the products. The companies like
Nissan, Volkswagen, Audi have just entered in to the Indian automobile market before 1 or 3
years ago so that the advertisement of this companies cars are more compare to Maruti Suzuki,
Hyundai, Honda, Tata.

2) MESSAGE

In designing and evaluating an ad campaign, marketers employ both art and science to develop
the message strategy or positioning of an ad-what the ad attempts to convey about the brands and
its creative strategy-how the ad expresses the brand claims.
• The Maruti Suzuki advertisement convey
The Maruti Suzuki passes the message to the consumer that is ‘way of life’. Maruti Suzuki
mainly focus on is to provide the product with high quality fuel efficient and low - cost
vehicles to satisfy the need of the consumer.

• The Audi advertisement convey


Audi is more likely to be successful through passion, cool and socially aspiration. Design,
Innovative Technology, Sports appeal, Stylish and Modernisms.

• The BMW advertisements convey


BMW drivers have ‘more to prove’, are less open to change, and more competitive. Powerful
cars, Makes the right statement, Joy is Youthful, Joy is impatient, we make Joy, Joy is BMW

• Mercedes Benz advertisements convey


Classic, Prestigious, Great reputation, Luxurious, Good resale value, more than just a car it is
classy, with established money and wants people to know it.

• Toyota’s advertisement convey


Reliable, thoroughly tested technology that serves your people and processes. Toyota's
management philosophy has evolved from the company's origins and has been reflected in the
terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in
developing.

1) MEDIA

As per as the Indian automobile industry is concern media plays a very important role in the
market to attract the customer. Different companies are using different tools which will help the
marketers to promote their product in the market which are as follows.
• TELEVISION Ads

Television is generally acknowledge as the most powerful advertisement medium and reaches to
the large no of consumers. According to the estimates of the 2005 Indian Readership Survey,
television reaches an audience that constitutes 54% of the population, and the penetration of
satellite television is about 26%. The working of television and satellite varies in different states.
In Indian automobile industry different companies give the advertisement in the different
channels like ten sports, star cricket, CNBC etc.
Advantage – The wide reach of television translates to low cost per exposure.
However important strength of television is it can be an effective means of vividly demonstrating
product attributes and persuasively explaining their corresponding consumer benefits and also
explain the features like engine information, fuel capacity, and maintenance. Second, it can be
dramatically portray user and usage imagery brand personality, and other intangibles.
Disadvantages – Due to the short nature of the ad, and the distracting creative elements often
found in it, product-related messages and the brand itself can be overlooked.
Moreover, the high volume of ads and no programming material on television creates clutter that
makes it easy for consumers to ignore or forget ads. Although production and placement are
expensive, the fragmentation of the channel. By and number of measure, the effectiveness of any
one advertisement on average has diminished.

• PRINT Ads
Print media offer a stark contrast to broadcast media. Because readers consume them at their own
pace, magazines and newspaper can provide detailed product information and effectively
communicate user and usage imagery. In Indian auto industry with the help of print media
companies showing advertisement in the news papers, magazines of the features of the car and
other important aspects.
Advantage - Newspaper are timely and pervasive magazines are typically more effective at
building user and usage imagery.
Newspaper are popular for local especially retailer- advertising. Newspaper is widely accepted
and has high believability at the local level.
Magazines are high quality reproduction and long life as result it has good pass-along readership.
It is high geographic and demographic selectivity and has good prestige and credibility as result
target audience can be effectively reached.
Disadvantage – Although advertisers have some flexibility in designing and placing newspaper
ads, poor reproduction quality and short shelf life can diminish the ads impact.
Format elements such as size, color, and illustration also affect a print ad’s impact. Large ads
gain attain more attention though not necessarily as much as their difference in cost. Four color
illustrator increase ad effectiveness and ad cost.
Researchers studying print advertisements report that the pictures, headline and copy matters in
that order. The pictures must be strong enough to draw attention. Even then, less than 50% of the
exposed audience will notice even a really outstanding ad About 30% might recall the headlines
main point; about 25% the advertises name; and fewer that 10% will read most the body copy,
So print ads require extraordinary creativity which in return required huge cost.
Magazines do not have guarantee of position, and there is possibility of waste circulation.

• RADIO Ads
Radio is a popular medium for entertainment and news in rural area of South Asia as result the
youth are targeted by the music program. Radio gain its popularity when Indian government
permits the private sector to broadcast entertainment programs through FM channels.
Advantage - Perhaps radios main advantage is flexibility-stations are very targeted, ads are
relatively inexpensive to produce and place, and short closings allow for quick response. Radio is
a particularly effective medium in the morning; it can also let companies achieve balance
between broad and localized market coverage. In the urban areas, on the other hand, due to
popularity of television, the number of people listening to the radio for entertainment has
declined over the last several years.
Disadvantage – The obvious disadvantage of radio are the lack of visual images and the
relatively passive nature of consumer processing that result. As result of audio presentation it
gain lower attention than television, non standardize rate structure is other disadvantage of
radio.

• FILM Ads

In Ahmedabad, films are an extremely popular entertainment vehicle for the masses. India is the
largest producer of films in the world. There are around 21,000 theater and over 135 digital
theater in India. Advertisers can release their advertisements to be screened along with the flim
in theaters, either at the beginning of the moive or during the intervals time.

Advantage – The mood of the audience is conductive for them to pay attention to the
advertisements. Due specific location it totally provides flexibility to the advertiser. Local firms
in the city can use this medium to reduce waste of money on others sources moreover
international firm can use this platform for increasing their effectiveness in local market.

Disadvantage - The cost of developing the prints for release in different theater, and the
difficulties in monitoring the screening of the advertisement in far-flung movie theater pose
difficulties to the advertisers.

• BILLBOARDS (Hoardings) Ads -

Billboards have been transformed and now use colorful, digitally produced graphics,
backlighting sound, movements, and unusual-even three dimensional-images. In Ahmadabad
they are referred at traffic junctions and highways are an important reminder medium Most of
the outdoor hoarding were hand-painted earlier; but of late, hoardings varies significantly across
cities and also in locations within cities. For ex whenever any co launch the new car, any co
come out with a new model at that time co gives ads in to the holdings where maximum traffic
pass so that customer easily aware about the new cars. When Hyundai come out with kappa
engine at that time they give the ad in to the holding so that consumer can understand about the
new technology.

Advantage - Main benefit from the outdoor hoarding is that it’s very flexible and has high repeat
exposure. Secondly the cost of the advertisement is very low compare to other local medium of
advertisement due to low competition factor.
Disadvantage – The audience reach out is limited in this medium and it also affected by
creative limitations.

• INTERNET

The internet and its social networking sites are widely used now a days to promote the product,
because of huge success of social networking sites in the last couple of years the brands have
started using this medium effectively to promote and advertise their product. Some of the major
social networking sites are FACEBOOK and TWITTER. BMW effectively use the DIRECT
MAIL to approach their customer.

Advantage - The cost of advertisement is very low and ad cost per person is very cheap
compare to other sources and some of the target can be easily reached. High selectivity and
interactive possibilities are some of the major benefits of the internet marketing,

Disadvantage – As the media new-fangled is the use of the internet in low in some country and
main disadvantage is rural area can’t be covered in source of advertisement. In country like
India where electricity is major problem this media can’t be effectively used.

8.2:- Promotion strategy

Sales promotion is intendent to achieve specific objective is specially increased the sales in short
time period. As per as the automobile industry in concern they making good sales promotion at
the time of some festivals and also in some specific occasion like diwali, Christmas, janmasthami
etc the following are the example of sales promotion done by the different auto company.

• Exchange your any current car and purchase any Maruti Suzuki car.
• Chevrolet provides three year warranty to the customer.
• Recently on a republic day Tata motors come out with an offer of book any Tata car and get
two grams golden coin extremely free.
• Recently Tata motors come out with a nano car for increase the sale of this car company
provide maintenance contract with 99**per month and 4 years warranty up to RS 60,000 kilo
meters.
• Honda company come out with one scheme is to purchase a used luxurious car in amount of
small car with a offers like
✔ Free warranty up to 1 year or 20,000 k.m
✔ Free service 1year
✔ Free road side assistance
✔ Free PUC certificate etc.
• Mahindra co provide a discount of RS 20,000** to purchase a Logan car.
Recently Toyota come out with ETIOS in this car co provide 3 years warranty or
100,000 k.m unmatched vehicle warranty and 24×7 road side assistance.

It is an activity which is design to promote or protect company’s image in the mind of general
public. The main objective of public relation is to develop and maintain the relationship with the
various stake holders of the company.

Press relations:

When a company wants to give information in the press then it calls press relations. For ex :
when Tata motors come out with a small car namely ‘Tata Nano’ at that time Ratan Tata invites
a press conference and give the information about Tata nano to the press reporter and with this
he is trying to promote the Tata nano to create awareness in the mind of consumer.

Product publicity:

Product publicity can be defined as publicity through product by showing product in the market.

For ex: Different companies are participating in the auto expo and showing their current model
as well as the models which are coming in the near future. Recently in the Delhi auto expo the
different companies showing their car like Toyota etios, Honda jazz, Tata nano power,
Volkswagen polo etc.

Counseling:

Public relation is also give advice to the top level management as they have full knowledge about
it. As per as the counseling is concern the auto company provide continuously information about
the new cars to the existing customer so that they can take a purchase decision in easy manner.

8.3:-Public relation stategy

It is an activity which is design to promote or protect company’s image in the mind of general
public. The main objective of public relation is to develop and maintain the relationship with the
various stake holders of the company.

1) Press relations:
When a company wants to give information in the press then it calls press relations. For ex :
when Tata motors come out with a small car namely ‘Tata Nano’ at that time Ratan Tata invites
a press conference and give the information about Tata nano to the press reporter and with this
he is trying to promote the Tata nano to create awareness in the mind of consumer.

2) Product publicity:
Product publicity can be defined as publicity through product by showing product in the market.

For ex: Different companies are participating in the auto expo and showing their current model
as well as the models which are coming in the near future. Recently in the Delhi auto expo the
different companies showing their car like Toyota etios, Honda jazz, Tata nano power,
Volkswagen polo etc.

3) Counseling:
Public relation is also give advice to the top level management as they have full knowledge about
it. As per as the counseling is concern the auto company provide continuously information about
the new cars to the existing customer so that they can take a purchase decision in easy manner.

8.4:- Personal selling

It is an activity where companies own employees are involved in selling, promoting the products
and services directly to the customer.

1)Event and experience


Company sponsored activities and programs design to create daily or special brand related inter
actions. Event and experience includes sport, arts, entertainment and cause event as well as less
formal activity that create novel brand interaction with customer.

For ex recently Chevrolet motor car company sponsored the event of ‘CHVROLET APSARA
FILM & TELIVISION PRODUCERS GUILD AWARDS’.
Chapter 9:-
ANALYITIC STUDYOF CONSUMER
BEHAVIOUR FOR AUTOMOBILE
INDUSTRY

Total Distribution of cars in deff. Level

Diff. Levels Person %


Entry level car 147 50
Executive level car 107 36
Premium level car 41 14

Interpretation:-
The above diagram shows the relationship between the total distribution of cars among various
level i.e. entry level, executive level and premium level. From above we can see that the major
respondent are of entry level car which is 50%.

Entry Level car Maruti Suzuki

Purchasing Decision

Perso
Purchase decision n %
Good brand image 49 56
Word of mouth communication 4 4
Better after sales service 28 32
Resale value 5 6
Others 2 2

Interpretation:-

The above diagram shows the relationship between the purchase decision of the respondent who
are using the maruti cars and the no. Of the respondent among that group. The above table
shows that purchase decision for good brand image have the major share i.e. 56%.

Maintance wise Performance

Perso
Maintance vise Performance ( Rate 0 to 4 ) n
1 8
2 6
3 2
4 4

interpretation:-

The above diagram shows the maintenance vise performance of the maruti entry level cars rated
by the respondent on the basis of the scale given.
Miledge wise Performance

Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 7
2 6
3 5
4 2

Interpretation:-

The above diagram shows the miledge vise performance of the maruti entry level cars rated by
the respondent on the basis of the scale given.

Comfort vise Performance

Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 4
2 3
3 8
4 4
5 1
Interpretation:-

The above diagram shows the comfort wise performance of the entry level cars rated by the
respondent on the basis of 5 parameter’s of maruti cars.

After Sales Service vise Performance

After Sales Service vise Performance ( Rate 0 Perso


to 4 ) n
1 1
2 5
3 4
4 8
5 2

Interpretation:-

The above diagram shows the performance of the after sales services rated by the respondent on
the basis of 5 point of the user of maruti cars.

Other Parameters vise Performance

Other Parameters vise Performance ( Rate 0 Perso


to 4 ) n
3 1
4 2
5 17
Interpretation:-

The above diagram shows the performance on the other extra factor rated by the
respondent on the basis of 5 point of maruti cars users.

satisfaction level

perso
satisfaction level n
highly satisfied 11
satisfied 8
dissatsfied 1

The above diagram shows the satisfaction level of the maruti cars users. The above
diagram shows that the user of maruti cars are highly satisfied i.e. 55%

Future plan

person
Future plan s
yes 12
no 8
Interpretation:-

The above diagram shows the future plan of the respondent using maruti cars to
buy the new car in the near future. The 60% of the respondent of maruti cars owner
are planning to but new car.

IF yes Future car

Person
IF yes Future car s
Maruti suzuki 3
Tata 2
Hyundai 1
ford 2
Nissan 1
honda 2
Others 1

Interpretation:-

The above diagram shows the decision of the respondent to buy the which brand
car in the future of the maruti cars user’s. The major respondent are planning to
buy the maruti brand cars again i.e. 25%.

Tata

Perso
Purchase decision n
Good brand image 10
Word of mouth
communication 8
Better after sales service 2
Others 2

Interpretation:-

The above diagram shows the relationship between the purchase decision of the respondent who
are using tata brand cars and the no. Of the respondent among that group. The above table shows
that purchase decision is for good brand image have the major share i.e. 46%.

Mainatance vise Performance ( Rate Perso


0 to 4 ) n
1 6
2 8
3 6
4 2

Interpretation:-

The above diagram shows the maintance wise performance of the user of tata cars
of entry level cars rated by the respondent on the bases of 5 points.

Comfort vise Performance ( Rate 0 to 4 ) Perso


n
1 4
2 3
3 8
4 4
5 1

Interpretation:-

The above diagram shows the comfort wise performance of tata cars of the entry
level cars on the basis of 5 points.

After Sales Service vise Performance ( Rate 0 Perso


to 4 ) n
1 1
2 5
3 4
4 8
5 2

Interpretation:-

The above diagram shows the after sales services performance of the tata cars on
the basis of 5 points.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
3 1
4 2
5 17

Interpretation:-

The above diagram shows the performance on the basis of other parameter of the
tata cars user’s on the basis of 3 parameter’s.

perso
satisfaction level n
highly satisfied 11
Satisfied 8
dissatsfied 1

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the tata cars users
and the no. Of the respondent among them. The above chart shows that there are major
respondent who are satisfied i.e. 55%.
person
Future plan s
yes 12
no 8

Interpretation:-

The above diagram shows the relationship between the respondent who are having the tata cars
and planning to buy a new car in the near future and the no. Of respondent among that group.
From above diagram we can see that major respondent are planning to buy the new car in future
i.e. 60% .

Person
IF yes Future car s
Maruti suzuki 3
Tata 2
Hyundai 1
Ford 2
Nissan 1
Honda 2
Others 1

Interpretation:-
The above diagram shows the relationship between the respondent who are using tata cars and
planning to buy the car in the future of which brand and the no. Of respondent. The above chart
shows that the major respondent are planning to buy maruti i.e. 25%.
Hyundai

Perso
Purchase decision n
Good brand image 10
Word of mouth
communication 8
Better after sales service 2
Others 2

Interpretation:-

The above diagram shows the relationship between the purchase decision of the entry level carof
tata brand and the no. Of the respondent among that group. The above chart shows that the
owner of tata cars had purchased it for good brand image i.e. 46%.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 6
2 8
3 6
4 2

Interpretation:-

The above diagram show the maintance wise performance of the Hyundai entry
level cars rated by the respondent.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 8
2 6
3 5
4 3

Interpretation:-

The above chart shows the miledge wise performance of the Hyundai entry level
cars rated by the respondent on the bases of 5 point.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 8
2 2
3 4
4 8

Interpretation:-

The above chats shows the comfort wise performance of the Hyundai entry level
cars rated by the respondent on the basis of parameters.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
2 6
3 7
4 7
5 2

Interpretation:-

The above diagram shows the after sales services performance of the Hyundai enrty
level cars rated by the respondent.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
4 2
5 20

Interpretation:-

The above diagram shows the performance based on other parameters rated by the
respondent.
perso
satisfaction level n
highly satisfied 12
Satisfied 10

Interpretation:-

The above diagram shows the satisfaction level of the Hyundai entry level car rated
by the respondent. The above diagram shows that the cars users are highly
satisfied i.e. 55%.
person
Future plan s
Yes 12
No 10

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy a
new car in the near future and the no. Of respondent among that group. From above diagram we
can see that major respondent are planning to buy the new car in future i.e. 55%.
Person
IF yes Future car s
Maruti suzuki 1
chevrolet 2
honda 2
Others 1

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy the
car in the future of which brand and the no. Of respondent. The above chart shows that the major
respondent are planning to buy Chevrolet and Honda i.e. 33%.
Perso
Purchase decision n
Good brand image 1
Word of mouth
communication 1
Better after sales service 2

Interpretation:-

The above diagram shows the relationship between the purchase decision of Chevrolet of the
entry level car and the no. Of the respondent among that group. The above chart shows that the
owner of entry level cars had purchased it for better after sales services.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 2
4 2

Interpretation:-

The above chart shows the maintance wise performance of Chevrolet entry level car
rated by the respondent.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
2 1
3 3

Interpretation:-

The above diagram shows the miledge wise performance of the Chevrolet entry
level cars rated by the respondent on the basis of scale given 1 to 5.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 2
2 1
3 1

Interpretation :-

The above diagram shows the comfort wise performance of the Chevrolet entry
level cars rated by the respondent on the 50%, 25% and the 25%.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
2 2
4 2

Interpretation:-

The above chart shows the after sales services performance wise of the Chevrolet
entry level cars rated by the respondent on the basis of 50% and 50%.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 4

Interpretation:-

The above diagram shows the performance on other the other parameters rated by
the respondent on the scale of 100%.
perso
satisfaction level n
highly satisfied 2
satisfied 2

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the Chevrolet entry
level car and the no. Of the respondent among them. The above chart shows that 50% are highly
satisfied and 50% are satisfied..
person
Future plan s
yes 2
no 2

Interpretation:-

The above diagram shows the relationship between the respondent who owns the Chevrolet cars
and are planning to buy a new car in the near future and the no. Of respondent among that group.
From above diagram we can see there are 50:50 ratio.
Person
IF yes Future car s
Nissan 1
Others 1

The above diagram shows the relationship between the respondent who are planning to buy the
car in the future of which brand and the no. Of respondent. The above chart shows that the major
respondent are planning to buy Nissan and other brand cars.
ford

Perso
Purchase decision n
Word of mouth
communication 3
Better after sales service 1

Interpretation:-

The above diagram shows the relationship between the purchase decision of the ford entry level
car and the no. Of the respondent among that group. The above chart shows that 75% buyed it
for word of good mouth communication and 25% for better after sales service.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 2
3 1
4 1

Interpretation:-

The above chart shows the maintance wise performance of the ford car rated by the
respondent on the scale of 50%, 25% and 25%.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 1
2 1
4 2

Interpretation:-

The above chart shows the miledge wise performance of the ford entry level cars
rated by the respondent.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 1
2 2
4 1

Interpretation:-

The above chart shows the comfort wise performance of the ford cars rared by the
respondent.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
2 1
3 3

Interpretation:-

The above chart shows the after sales services wise performance of the ford cars
rated by the respondent.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 4

The above chart shows the performance based on other parameters of the ford
entry level cars rated by the respondent.
perso
satisfaction level n
highly satisfied 2
satisfied 2

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the ford entry level
cars and the no. Of respondent among them. The above diagram shows that the owner of the ford
entry level cars are satisfied 50% and 50% are highly satisfied.
person
Future plan s
yes 4

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy a
new car in the near future and the no. Of respondent among that group. From above diagram we
can see that major respondent are planning to buy the new car in future i.e. 100 %.
Person
IF yes Future car s
Tata 1
Hyundai 2
honda 1

Interpretation:-

The above diagram shows the relationship between the respondent who own ford car and are
planning to buy the car in the future of which brand and the no. Of respondent. The above chart
shows that the major respondent are planning to buy tata 25%, Hyundai 50% and Honda 25%.

Nissan

Perso
Purchase decision n

Resale value 1
Others 1

Interpretation:-

The above diagram shows the relationship between the purchase decision of the nissan entry
level car and the no. Of the respondent among that group. The above chart shows that the owner
of entry level cars had purchased it for resale value is 50% and other are 50%.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
3 1
4 1

Interpretation:-

The above chart shows the maintenance wise performance of the Nissan motors
entry level cars rated by the respondent. On 50% and 50% bases.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 1
2 1

Interpretation:-

The above chart shows the miledge wise performance of the Nissan motors rated by
the respondent on 50% and 50%.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
3 1
4 1

Interpretation:-

The above chart shows the comfort wise performance of the Nissan motors rated by
the respondent on 50% and 50% bases.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 1
2 1

Interpretation:-

The above chart shows the after sales service wise performance of the Nissan
motors rated by the respondent.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 2

Interpretation:-

The above chart shows the performance on the other factor rated by the
respondent on 100% bases.
perso
satisfaction level n
highly satisfied 1
Satisfied 1

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the Nissan entry level
cars and the no. Of respondent among them. The above diagram shows that 50% are satisfied and
50% are highly satisfied.
person
Future plan s
no 2

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy a
new car in the near future and the no. Of respondent among that group. From above diagram we
can see that major respondent are not planning to buy the car in future.
Honda

Perso
Purchase decision n
Good brand image 2

Interpretation:-

The above diagram shows the relationship between the purchase decision of the honda entry
level car and the no. Of the respondent among that group. The above chart shows that the owner
of Honda entry level cars had purchased it for good brand image.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
2 2

Interpretation:-

The above chart shows the maintance wise performance of the Honda cars rated by
the respondent on 100% bases.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 1
3 1

Interpretation:-

The above chart shows the miledge wise performance of the Honda cars rated by
the respondent on 50% and 50% bases.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 1
3 1

Interpretation:-

The above chart shows the comfort wise performance of the Honda cars rated by
the respondent.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
4 2

Interpretation:-

The above chart shows the after sales services wise performance of the Honda cars
rated by the respondent on 100% bases.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 2

Interpretation:-

The above chart shows the performance on the other factors rated by the
respondent on 100% bases.
perso
satisfaction level n
highly satisfied 2

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the Honda cars and
the no. Of the respondent among them. The above chart shows that there are major respondent
who are highly satisfied.
person
Future plan s
yes 1
no 1

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy a
new car in the near future and the no. Of respondent among that group. From above diagram we
can see that 50% respondent are planning to buy and 50% are not planning to buy.

Person
IF yes Future car s
Hyundai 1

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy the
car in the future of which brand and the no. Of respondent. The above chart shows that the major
respondent are planning to buy Hyundai. These is the most preferred brand by the customer.
Executive level

Perso
Purchase decision n
Good brand image 11
Word of mouth
communication 2
Better after sales service 7

Interpretation:-

The above diagram shows the relationship between the purchase decision of the respondent of
the executive level who are using the cars and the no. Of the respondent among that group. The
above table shows that purchase decision is for good brand image i.e. 55% and then by better
after sales services i.e. 35%.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 2
2 4
3 9
4 5

Interpretation:-

The above chart shows the maintance wise performance of the executive level cars
rated by the respondent.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 4
2 6
3 7
4 3

Interpretation:-

The above diagram shows the miledge wise performance of the executive level cars
rated by the respondent
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 8
2 5
3 2
4 5

Interpretation:-

The above chart shows the comfort wise performance of the executive level cars
rated by the respondent.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 6
2 5
3 2
4 7

The above chart shows the after sales service wise performance of the executive
level cars rated by the respondent.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 20

Interpretation:-

The above chart shows the performance based on the other factor of the executive
level cars which is 100%
perso
satisfaction level n
highly satisfied 12
satisfied 7
dissatsfied 1

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the executive level
cars and the no. Of the respondent among them. The above chart shows that there are major
respondent who are highly satisfied i.e. 60 % and 35% are satisfied and 5% are dissatisfied.
Future plan to but the car.

Future plan %
yes 75
no 25

interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy a
new car in the near future and the no. Of respondent among that group. From above diagram we
can see that major respondent are planning to buy the new car in future i.e. 75% and no tplanning
to buy are 25%.
Person
IF yes Future car s
Maruti suzuki 3
Hyundai 3
Chevrolet 1
Ford 2
Nissan 1
Honda 4
Others 1

Interpretation :-

The above diagram shows the relationship between the respondent who are the owner of
executive level car and planning to buy the car in the future of which brand and the no. Of
respondent. The above chart shows that the 27% respondent are planning to buy Honda , 20%
each for maruti & Hyundai & 13% Chevrolet, 7% for others & Nissan, 8% for Chevrolet.
Maruti

Perso
Purchase decision n
Good brand image 4
Word of mouth
communication 1

Interpretation:-

The above diagram shows the relationship between the purchasing decision of the executive
level cars owner and the no. Of respondent among them. The diagram shows the owner of
executive level cars had purchased the cars because of good brand image i.e. 80% & 20% for
word of mouth communication.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
2 1
3 4

Interpretation:-

The above chart shows the maintance wise performance of the maruti executive
level cars rated by the respondent on the bases of scale given.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 1
2 2
3 1
4 1

Interpretation:-

The above chart shows the miledge wise performance of the maruti executive level
cars rated by the respondent based on the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 3
4 2

Interpretation :-

The above chart shows the comfort wise performance of the maruti executive level
cars rated by the respondent on the bases of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 1
2 2
4 2

Interpretation:-

The above chart shows the after sales services wise performance of the maruti
executive level cars rated by the respondent on the bases of scale given.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 5

Interpretation:-

The above chart shows the performance based on the other parameters rated by
the respondent on the given scale. Here it was 100%.
perso
satisfaction level n
highly satisfied 3
satisfied 2

Interpretation:-

The above diagram shows the relationship between the satisfaction level among the maruti
executive level cars owners and the no. Of the respondent. The above diagram shows that the
owner of the executive level cars are 60% highly satisfied and 40% are satisfied.
person
Future plan s
yes 3
no 2

Interpretation:-

The above diagram shows the relationship between the future plan of the executive level car
owners to buy the new car in the near future and the no. Of respondent. The above shows that the
owner of the executive level cars are planning to buy car in future i.e. 60% people among all the
executive level car owner and 40% are not planning to buy.
Person
IF yes Future car s
Maruti suzuki 1
Tata 1
Others 1

Interpretation:-

The above diagram shows the relationship between the which car to purchase in the future by the
executive level car owner and the no. Of the respondent. The above chart shows that the maruti
have 34%and the Hyundai are the most preferred brand
Perso
Purchase decision n
Good brand image 15
Word of mouth
communication 3
Better after sales service 6

Interpretation:-

The above diagram shows the relationship between the purchase decision of the tata executive
level car owners respondent and the no. Of the respondent among that group. The above table
shows that purchase decision for good brand image have the major share i.e. 62% and better after
sales services have 25% share & word of mouth communication have 13% share.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 3
2 7
3 9
4 5

Interpretation :-

The above chart shows the maintance wise performance of the Tata executive level
car rated by the respondent on the bases of the scale given.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 8
2 5
3 5
4 5
5 1

Interpretation:-

The above chart shows the miledge wise performance of the Tata executive level
cars rated by the respondent on the bases of the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 9
2 5
3 4
4 6

Interpretation:-

The above chart shows the comfort wise performance of the Tata executive level
cars rated by the respondent on the basis of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 5
2 7
3 6
4 6

Interpretation:-

The above chart shows the after sales services wise performance of the Tata
executive level cars rated by the respondent on the basis of the scale given.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
4 1
5 23

Interpretation:-

The above chart shows the performance based on the other parameters rated by
the respondent on the basis of the scale given.
perso
satisfaction level n
highly satisfied 19
satisfied 5

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the Tata executive
level cars and the no. Of the respondent among them. The above chart shows that there are major
respondent are highly satisfied i.e. 79% and the 21% are satisfied.
person
Future plan s
yes 13
no 11

Interpretation:-

The above diagram shows the relationship between the Tata executive level cars respondent who
are planning to buy a new car in the near future and the no. Of respondent among that group.
From above diagram we can see that major respondent are planning to buy the new car in future
i.e. 54% and 46% are not planning to buy car.
Person
IF yes Future car s
Maruti suzuki 3
Hyundai 3
chevrolet 1
honda 3
Others 3

Interpretation:-

The above diagram shows the relationship between the respondent who are planning to buy the
car in the future of which brand and the no. Of respondent. The above chart shows that the 23%
respondent are planning to buy maruti, Hyundai, Honda and other co. cars. While 8% are
planning to buy Chevrolet.
Chevrolet

Perso
Purchase decision n
Good brand image 3
Word of mouth
communication 1
Better after sales service 1

Interpretation:-

The above diagram shows the relationship between the purchasing decision of the chevrolet
executive level cars owner and the no. Of respondent among them. The diagram shows that 60%
had purchased of the good brand image & 20% for word of mouth communication & 20% for
after sales services.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
2 1
3 1
4 3

Interpretation:-

The above chart shows the maintance wise performance of the Chevrolet executive
level cars rated by the respondent on the basis of the scale given.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
2 3
3 2

Interpretation:-

The above chart shows the miledge wise performance of the Chevrolet executive
level cars rated by the respondent on the basis of the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 4
3 1

Interpretation:-

The above chart shows the comfort wise performance of the Chevrolet executive
level cars rated by the respondent on the basis of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 1
2 1
3 1
4 2

Interpretation:-

The above chart shows the performance based on the after sales services
parameter rated by the respondent on the basis of the scale given.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 5

Interpretation:-

The above chart shows the performance based on the other parameter rated by the
respondent on the basis of the scale given.
perso
satisfaction level n
highly satisfied 3
satisfied 2

Interpretation:-

The above diagram shows the relationship between the satisfaction level among the Chevrolet
executive level cars owners and the no. Of the respondent. The above diagram shows that the
owner of the executive level cars are highly satisfied i.e. 60% of the total executive level cars
owners and 40% are satisfied.
person
Future plan s
yes 4
no 1

Interpretation:-

The above diagram shows the relationship between the future plan of the executive level car
owners to buy the new car in the near future and the no. Of respondent. The above shows that the
owner of the executive level cars are planning to buy car in future i.e. 80% among all the
executive level car owner & 20% are not planning to buy.
Ford

Perso
Purchase decision n
Good brand image 1
Better after sales service 1
Resale value 2

Interpretation:-

The above diagram shows the relationship between the purchase decision of the respondent who
are using the ford cars and the no. Of the respondent among that group. The above table shows
that purchase decision for good brand image & better after sales services have 25% share each,
resale value have 50% share.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
2 1
3 1
4 2

Interpretation:-

The above chart shows the maintance wise performance of the ford executive level
cars rated by the respondent the basis of the scale given.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 2
2 1
3 1

Interpretation:-

The above chart shows the miledge wise performance of the ford executive level
cars respondent rated by the respondent on the basis of the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 2
3 2

Interpretation:-

The above chart shows the comfort wise performance of the ford cars rated by the
respondent on the basis of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
2 2
4 2

Interpretation:-

The above chart shows the after sales service wise performance of the ford
executive level cars rated by the respondent on the basis of the scale given.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 4

Interpretation:-

The above chart shows the performance based on the other parameters rated by
the respondent on the basis of the scale given.
perso
satisfaction level n
highly satisfied 2
satisfied 2

Interpretation:-

The above diagram shows the relationship between the satisfaction level among the ford
executive level cars owners and the no. Of the respondent. The above diagram shows that the
owner of the executive level cars are 50% satisfied & 50% highly satisfied.
person
Future plan s
no 4

Interpretation:-

The above diagram shows the relationship between the future plan of the executive level car
owners to buy the new car in the near future and the no. Of respondent. The above shows that the
owner of the executive level cars are not planning to buy car.
Nissan

Perso
Purchase decision n
Good brand image 14
Word of mouth
communication 3
Better after sales service 2
Resale value 2
Others 1

Interpretation:-

The above diagram shows the relationship between the purchasing decision of the Nissan
executive level cars owner and the no. Of respondent among them. The diagram shows the
owner of executive level cars had purchased the cars because of good brand image 64%, word of
good mouth comm.14%, 9% each of resale value & better after sales services, 4% for others.
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 4
2 5
3 7
4 6

Interpretation:-

Above chart shows the maintance wise performance of the ford executive level cars
rated by the respondent on the basis of the scale given.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
1 9
2 5
3 5
4 3

Interpretation:-

The above chart shows the miledge wise performance of the Nissan executive level
cars rated by the respondent based on the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 7
2 7
3 4
4 4

Interpretation:-

The above chart shows the comfort wise performance of the Nissan executive level
car rated by the respondent on the basis of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 2
2 5
3 6
4 9

Interpretation:-

The above chart shows the after sales service wise performance of the Nissan
executive level car rated by the respondent based on the scale given.

Other Parameters vise Performance ( Rate 0 Perso


to 4 ) n
5 22

Interpretation:-

The above chart shows the performance based on the other parameter rated by the
respondent on the basis of the scale given.
perso
satisfaction level n
highly satisfied 11
satisfied 5

Interpretation:-

The above diagram shows the relationship between the satisfaction level among the Nissan
executive level cars owners and the no. Of the respondent. The above diagram shows that the
69% are highly satisfied while 31% are satisfied.
person
Future plan s
yes 15
no 7

Interpretation:-

The above diagram shows the relationship between the future plan of the executive level car
owners to buy the new car in the near future and the no. Of respondent. The above shows that the
owner of the executive level cars are planning to buy car in future i.e. 68% people among all the
executive level car owner & 32% are not planning to buy .
Person
IF yes Future car s
Maruti suzuki 4
Hyundai 3
ford 2
Nissan 1
honda 4
Others 2

Interpretation:-

The above diagram shows the relationship between the which car to purchase in the future by the
executive level car owner and the no. Of the respondent. The above chart shows that Honda &
maruti are have 25% share, Hyundai have 19% share ford have 12% share.
Premimum level

Perso
Purchase decision n
Word of mouth
communication 1

Interpretation:-

The above diagram shows the relationship between the purchase decision of the premium level
car owners and the no. Of the respondent. The chart reveals that the owner of the premium level
car had owned it for good brand image i.e. 100% .
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
4 1

Interpretation:-

Above chart shows the maintance wise performance of the premium level cars rated
by the respondent on the bases of the scale given i.e. 100%
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
2 1

Interpretation:-

The above chart shows the miledge wise performance of the premium level cars
rated by the respondent on the basis of the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 1

Interpretation:-

The above chart shows the comfort wise performance of the premium level cars
rated by the respondent on the basis of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
3 1

Interpretation:-

The above chart shows the after sales service wise performance of the premium
level cars rated by the respondent on the basis of the scale given.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 1

Interpretation:-

The above chart shows the performance based on the other parameters rated by
the respondent on the basis of the scale given.
perso
satisfaction level n
highly satisfied 1

Interpretation:-

The above diagram shows the relationship between the satisfaction level among the premium
level cars owners and the no. Of the respondent. The above diagram shows that the owner of the
executive level cars are highly satisfied i.e. 100%.
person
Future plan s
no 1

Interpretation:-

The above diagram shows the relationship between the future plan of the premium level car
owners to buy the new car in the near future and the no. Of respondent. The above shows that the
owner of the executive level cars are not planning to buy in near future.
Perso
Purchase decision n
Good brand image 4

Interpretation:-

The above diagram shows the relationship between the purchase decision of the premium level
car owners and the no. Of the respondent. The chart reveals that the owner of the premium level
car had owned it for good brand image i.e. 100% .
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
1 1
3 1
4 2

Interpretation:-

The above chart shows the maintance wise performance of the premium level cars
rated by the respondent on the basis of the scale given.
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
2 2
3 1
4 1

Interpretation:-

The above chart shows the miledge wise performance of the premium level cars
rated by the respondent on the basis of the scale given.
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 1
2 1
3 1
4 1

Interpretation:-

The above chart shows the comfort wise performance of the premium level cars
rated by the respondent on the basis of the scale given.
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
1 1
2 2

Interpretation:-

The above chart shows the performance based on after sales services rated by the
respondent on the basis of the scale given.
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 4

Interpretation:-

The above diagram shows the performance based on the other parameters rated by
the respondent on the basis of the scale given.
perso
satisfaction level n
highly satisfied 4
person
Future plan s
yes 2
no 2
Person
IF yes Future car s
Tata 1
ford 1
Perso
Purchase decision n
Word of mouth
communication 1
Mainatance vise Performance ( Rate Perso
0 to 4 ) n
3 1
Perso
Miledge vise Performance ( Rate 0 to 4 ) n
4 1
Perso
Comfort vise Performance ( Rate 0 to 4 ) n
1 1
After Sales Service vise Performance ( Rate 0 Perso
to 4 ) n
2 1
Other Parameters vise Performance ( Rate 0 Perso
to 4 ) n
5 1

Interpretation:-

The above chart shows the performance based on the parameters rated by the
respondent on the basis of the 0 to 4 scale given.
perso
satisfaction level n
highly satisfied 1

Interpretation:-

The above diagram shows the relationship between the satisfaction level of the premium level
car owners and the no. Of the respondent. The chart reveals that the owner of the premium level
car are 100% highly satisfied.
person
Future plan s
No 1

Interpretation:-

The above diagram shows the relationship between the future plan of the premium level car
owners to buy the new car in the near future and the no. Of respondent. The above shows that the
owner of the executive level cars are not planning to buy in near future.

AGE V/S LEVEL


Age Group/LEVEL Entry level Executive Premium level
level

Less than 25 years 24 6 1

25 to 35 47 49 12

36 to 45 42 30 17

46 to 55 30 15 9

Above 55 4 7 2

INTERPRETATION:-
The above chart shows the relationship between the age of the respondent and the level of the c
than 25 years . There are 47% in the entry level car,49 in executive level cars, 12 in the premium
car in the age group of 36 to 45. There are 30 in the entry level, 15 in the executive level, 9 in th
level cars in the age group above 55.

COMFORT V/S ENTRY LEVEL CARS


Comfort/entery level 0 1 2 3 4 5 6 7
car

1 17 4 8 2 1 1 2

2 14 3 2 1 2 2

3 26 8 4 1 1 1 1

4 29 4 8 1 1

5 2 1

INTERPERTATION:-

The above chart shows the relationship between the comfort and the entry level cars.

The chart reveals that there are 17% in the entry level car

COMFORT V/S EXECUTIVE LEVEL

Comfort/executive 1 2 3 4 5 6 7
level car

1 3 9 4 2 7 14

2 5 7 3

3 4 1 2 4 6

4 2 6 4 2

5 1

INTERPRETATION:-
The above chart shows the relationship between the executive level cars and the
comfort wise performance. The above chart reveals that

COMFORT V/S PREMIUM LEVEL CARS

Comfort/Premi 0 1 2 3 4 5 6 7
um level car

1 1 1 1 1 8 16

2 1 3

3 1 2

4 1 4

INTERPRETATION:-

The above chart shows the relationship between the premium level cars and the
comfort wise performance of the cars

INCOME V/S LEVEL:-


Entry
Income/LEVEL level Executive level Premium level

Less than 30,000 41 11

46,000 to 55,000 31 25 2

31,000 to 45,000 43 26 6

55,000 to 70,000 15 22 6

More than70,000 17 23 27

INTERPRETATION:-

The above shows the relationship between the income and the levels of the cars.
The chart revels that are 41% in the entry level car, 11% in the executive level car
in the income group of less than 30000 rs. There are 31% in the entry level car,
25% in the executive level cars, 2% in the premium level car in the income group of
46000 to 55000. There are 43% in the entry level car,26% in the executive level
cars, 6% in the premium level car in the income group of 31000 to 70000. There are
15% in the entry level car, 22% in the executive level car, 6% in the premium level
car in the income group of 55000 to 70000. There are 17% in entry level car, 23%
executive level car, 27% in the premium level car in the income group of more than
70000.
INCOME/ MODE OF PURCHASE OF PRIMIUM CARS

Income/ Buying decision Cash Finance

Less than 30,000


46,000 to 55,000 2

31,000 to 45,000 1 5

55,000 to 70,000 3 3

More than70,000 15 12

INTERPRETATION:-

The above diagram shows the relationship between the way of purchase and income. The chart
shows that there are 2% in finance in income group of 46000 to 55000. There are 1% by cash &
5% by finance in the income group of 31000 to 45000. There are 3% by cash & 3% by finance in
income group of 55000 to 70000. There are 15% by cash & 12% by finance in income group of
more than 70000 rs.

Miledge v/s entry level car

mailedge/ent 0 1 2 3 4 5 6 7
ery level car

1 22 7 8 1 1 1 3

2 27 6 6 1 1 1 1

3 26 5 5 3 1

4 12 2 3 2 1

5 1
INTERPRETATION:-

The above chart

mailedge/execu
tive level car 0 1 2 3 4 5 6 7

1 4 1 8 2 9 7

2 6 2 5 3 1 5 11

3 7 1 5 2 1 5 6

4 3 1 5 3 2

5 1

MAILEDGE/EXECUTIVE LEVEL CAR:-


INTERPRETATION:-

MAILEDGE/PRIMIUM LEVEL CAR

mailedge/PRIMI
UM level car 0 1 2 3 4 5 6 7

1 2

2 1 2 3 1 12

3 1 2 1 5

4 1 1 6

INTERPRETATION:-

MAINTAINANCE/ENTERY LEVEL CAR:-

maintainance/en
tery level car 0 1 2 3 4 5 6 7

0 1

1 23 8 6 2 2

2 32 6 8 2 2
3 18 2 6 1 1 2

4 14 4 2 2 1 1 1

INTERPRETATION:-

MAINTAINANCE/EXECUTIVE LEVEL CAR

maintainance/exec
utive level car 0 1 2 3 4 5 6 7

0 3

1 2 3 4 10

2 4 1 7 1 1 5 8

3 9 4 9 1 1 7 5

4 5 5 3 2 6

INTERPRETATION:-
MAINTAINANCE/PRIMIUM LEVEL CAR:-

maintainance/pri
mium level car 0 1 2 3 4 5 6 7

0
1 1 2 4

2 1 1 5

3 1 1 1 4 3

4 1 2 3 1 1 4

INTERPRETATION:-

REASON FOR PURCHASE V/S ENTRY LEVEL CARS

Reason for
purchase/cars 0 1 2 3 4 5 6 7

Good brand
image 49 10 10 1 2 4

Word of mouth
communication 4 4 8 1 3

Better after
sales service 28 5 2 2 1

Resale value 5 1 1

Others 2 1 2 1
INTERPRETATION :-

The above chart shows the relation between the purchase decision of the entry
level cars. The

REASON FOR PURCHASE V/S EXECUTIVE LEVEL CARS

Reason for
purchase/cars 0 1 2 3 4 5 6 7

Good brand
image 11 4 15 3 1 14 12

Word of mouth
communication 2 1 3 1 3 8

Better after
sales service 7 6 1 1 2 2

Resale value 2 2 2

Others 1 2

INTERPRETATION:-

He above chart shows the relationship between purchase decision and the entry
level cars. The above chart reveals that

REASON FOR PURCHASE V/S PRIMIUM LEVEL CARS

Reason for
purchase/cars 0 1 2 3 4 5 6 7

Good brand
image 4 1 1 5 19
Word of mouth
communication 1 1 2 2

Better after
sales service 2

Resale value 1 2

Others

INTERPRETATION:-

AFTER SALES SERVICES V/S ENTRY LEVEL

aFTER
Sales
service
/entery
level
car 0 1 2 3 4 5 6 7

1 24 1 1

2 12 5 6 2 1 1

3 18 4 7 3 2

4 33 8 7 2 2 3

5 1 2 2

INTERPRETATION:-
AFTER SALES SERVICES V/S EXECUTIVE LEVEL

aFTER
Sales
service /
executiv
e level
car 0 1 2 3 4 5 6 7

1 6 1 1 5 1 2 2

2 5 5 2 7 1 5 3

3 2 4 6 1 6 4

4 7 8 2 6 2 9 17

5 2

Interpretation:-

AFTER SALES SERVICES V/S PRIMIUM LEVEL

After
Sales
service
/primiu
m level
car 0 1 2 3 4 5 6 7

1 1 3

2 2 1 1 2 6

3 1 1 1 6 5
4 10

5 1

Interpretation:-

CHAPTER 10:-
CONCLUSION, FINDING &
BIBILIOGRAPHY