SUMMER PROJECT REPORT

ON
THE CONSUMER BEHAVIOUR WHILE PURCHASING THE VEHICLES PARTS

SUBMITTED TO: BY : MS. MALIKA RANI CHAUDHARY KM. ROLL NO RQ2004 AO3

SUBMITTED

ANSHU

ACKNOWLEDGEMENT

I proudly present my project on the consumer s behaviours while purchasing the vehicles parts I sincerely hope that I have done Justice and the best support and guidance under submission of this summer training

project and bought the knowledge imparted by Faculty Ms. Malika Rani mam, Lovely professional University.

TABLE CONTENT

INTRODUCTION CONCEPTUAL FRAMEWORK OBJECTIVE OF THE PROJECT RESEARCH METHODOLOGY LIMITATIONS THE PROJECT FINDINGS

SURVEY ANALYSIS CONCLUSION KEY FINDINGS BIBLIOGRAPHY

QUESTIONNAIRE

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CONCEPTUAL FRAMEWORK
Buyer behaviour in the purchasing vehicles parts The purpose this project is to gain a better understanding , factors that influence consumer buying behavior in vehicles parts Specifically, we considered a number internal factors that influence consumer behavior including perception, motivation , learning. I also examined how a consumers attitude, which is a lasting evaluation person, object, or issue, can affect what they buy. I reviewed other factors that influence consumer purchasing decisions , buying behavior including personal, social, , situational issues. The personal influences on consumers are important determinants their needs , wants. Such factors as age, income, family products people buy , the status, , chosen lifestyle are strongly related to the types specific brands , they select. I examined the stages the consumer decision-making process for buying a problem alternatives between different brands , a

recognition, information search, evaluation

product choice , post purchase evaluation with respect to after sales service, customer relationship, , resale value the vehicle I also addressed the impact the amount effort expended , perceived risk; factors associated with relative importance , perceived consequences the purchase, from the consumers perspective. PROJECTS OBJECTIVES 1. To study how internal factors influence consumers decision-making processes for buying the vehicles parts. 2. To study the repurchase, purchase, , post purchase activities consumers engage

in when making decisions purchasing new vehicles parts 3. Understands , how situational factors can influence consumer behaviour.

4.

Describe how consumers relationships with other people , sources influence

their decision-making processes. Influences on the Consumer Purchase Decision Process Marketing mix influences Product Price Promotion Place

Psychological Influences Motivation Personality Perception Learning Values, beliefs , attitude Lifestyle

Consumer Decision Process Problem recognition Information search Alternative evaluation Purchase decision Post purchase behavior

Socio-cultural Influences Personal influence Reference groups Family Social class Culture Subculture

Situational Influences Purchase task Social surroundings Physical surroundings Temporal effects Antecedent states

Source: Consumer Behaviour by Leon G. Schiffman & Leslie Lazar Kanuk

1) Marketing Mix Influences: The Marketing Mix Influences - Marketing mix is used to reinforce the advantages the vehicles parts carefully reflecting its core values , positioning. It confirms how , why it will be interest to various segments the vehicles parts -buying public. Product Reflecting the Branding , In branding , , market positioning, branding , wishes to communicate a number attributes key

the vehicle parts. The brands positioning statement is designed to convey the model in a way that will best attract the

the product advantages , the character target market.

Place Getting the Product o the Customer In order to succeed at getting the product to the consumer, the companies employs national or International network agents or dealers who carry cars , other marques (car br ,s e.g. Honda City). This means that support should be given to the dealers around to promote the model in a way that generates them, for the vehicles parts.. Price Reflecting the Positioning Strategy The company should have a clear understanding its key target market for e.g. (Young people , other price-conscious car buyers) for small car segment , should design-pricing strategies to best address their needs , the positioning the vehicles parts. Promotion Communicating Publicity in the form motoring reviews test drives are critical to the success a trade launch as this activity should generate sufficient consumer curiosity , interest in the new 7

models. By getting potential vehicles parts buyers to test drive a car, product usage increases. This has a knock on effect to vehicles parts sales. The primary above the line medium used to promote communicate vehicles parts is through advertising. The

choice TV , outdoor advertising makes perfect marketing sense. 2) Socio-Cultural Influences: a) Cultural Influences: Culture: An overall culture Indian people with special reference to Delhites is based on egoism. People in Delhi are very egoists. For Example: Suppose ones neighbour, friend or relative buys a br , like Honda, irrespective one having money or not one would

target to buy the same brand , or a better brands , just to outshine his personality. Also, easy availability loans , schemes has helped them to achieve their goals. This nature people has also led to the increase in the vehicles parts sales. Caste or status: The divisions between the castes are reaffirmed on a daily basis, especially in rural areas, by many forms languages , etiquette. Each caste uses different personal names , uses slightly different forms speech, so it is ten possible for people to determine someones castes as soon as the person begins speaking. Persons lower rank behave politely by addressing their superiors with honorable formulas. The modern urban environment makes excessive concern about castes niceties impossible; all kinds people squeeze into buses with few worries about intimate

personal contact. Employment, health , educational opportunities are ficially open for

all, without prejudice based on casts. In urban slums, the general breakdown organization among the destitute allows a wide range intercastes relationships. Despite the near invisibility

social

castes in public life, castes based factions exits in all

modern institutions, including political parties, , when it comes to marriage- the true test adherence to ritual purity-the overwhelming majority unions occurs between members the same caste. Thus we see that the society India was in past a very caste oriented society, but with

times it is changing. But still their exits some traces the caste system in the daily lives Indians with special reference to people Delhi. Thus we need to put the cars in the

category basic requirements people due to the underdeveloped , erratic transportation system. So since a car satisfies the basic transportation need, communicating need, safety need , also personal need for others, which is very basic in nature, it appeals to people all classes in a similar manner. Hence it is a Product for all. Sex Sub Culture: All the ethnic groups in India with special reference to Delhites preserve a clear distinction in the roles the sexes. Women are responsible for cooking, raising children, , taking care the housework. The mans job is to protect women ,

children to provide them with material support. At the center the system are children, who mix freely until puberty , receive great deal affection from both sexes. As they enter their teens, children begin to adopt the adult roles that keep them in separate worlds: girls help with the household chores , boys work outside the home. Among the middle , upper income groups, however, education may last into their early twenties, , women may mix with males or even take on jobs that 9

were in past preserved for men. Today women have achieved great heights in all fields , vital efforts are being made for equality but still in India its the female who is forever subordinate to the man. But when it comes to the household duties , taking decisions for the family it the women who fully contribute for the final decision making process. b) Social Influences: The consumers behaviour is also influenced by (other) social factors as: Reference groups Family Social rules , statuses

c) Reference Groups A persons reference groups consist all social groups that have a direct (face to face) or indirect influence on the persons attitudes or behaviour. (Kotler, 2000, p. 163-164) Two types reference groups: Membership groups are the groups, to which the person belongs, Family, friends, neighbours, coworkers (primary groups) Religious, political, pr essional groups (secondary groups)

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Non-membership groups are the groups to which a person not belongs, but which influence the attitudes , behaviour the person. E.g. A Celebrity influencing the

personality , attitude a person. Family Family members constitute the most influential primary reference group shaping the buyers behavior. This family is the most important consumer-buying organization in society. d) Personal Influences: A buyers decisions are also strongly influenced by personal characteristics, so the Age , Life-cycle Stage

People buy different goods , services over their lifetime: They eat baby food in the early years, most foods in the growing , maturing years, , special diets in the later years. With reference to the cars a younger person may dem , a sportier looking car whereas an older person would go for a more comfortable , spacious car. Occupation A persons consumption pattern is also influenced by his or her occupation. A whitecollar worker will buy other vehicle as a blue-collar worker. Economic circumstances

Peoples economic circumstances consist their: Spendable income

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Savings , assets Borrowing power Attitude toward spending , saving. Lifestyle

People coming from the same subculture, social class, occupation but may lead different lifestyles. A persons lifestyle in the persons pattern living in the world as expressed in the persons activities, interests, , opinions. Lifestyle portrays the whole person interacting with his or her environment. Personality , Self-concept lead to the Psychological factors.

Personality means the persons distinguishing psychological characteristics. Self-Concept (or self image) means our image ourselves. The self-expressive benefit

that a br , car relates to the ability a br , to help a consumer to communicate his or her self-image. Since consumers have multiple roles, the consumer has an associated selfconcept , a need to express that self-concept. The purchase , use br ,s is one way to fulfill the need for self-expression. For example: consumer, who may define him/herself as successful , powerful by driving a Mercedes Benz.

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Model Purchase Decision Process Problem recognition: Perceiving need

Information search: Seeking value

Alternative evaluation: Assessing value

Purchase decision: Buying value

Post- Purchase behavior: Value in consumption user o

Source: Kotler 2000 1) Need Recognition: The need for the car emerges from a number factors like: 1) 2) 3) The basic transportation need Increase in the family size Upgrading for a better car 13

4)

First time buyer upgrading from a two-wheeler

All these factors help to satisfy the basic transportation need, communicating need, safety need (safe transportation) , Ego needs like status, respect , prestige. Psychological Influences: Maslows Hierarchy Needs

Self-actualization needs Self-fulfillment

Personal Needs Status, respect, prestige

Social Needs Friendship, belonging, love

Safety Needs Freedom from harm, financial security

Physiological Needs Food, water, sex, oxygen

Source: Schiffman Kanuk

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2) Pre-purchase search: Information search An aroused consumer will be inclined to search for more informations. What sources informations are used to help arrive at a decision? Consumer informations sources fall into four groups: (1) Personal sources: Family, friends, , neighbours (2) Commercial sources: Advertising, salespersons, displays (3) Public sources: Mass media, consumer-rating organizations (4) Experiential sources: H ,ling, examining, using the product. Normally, the amount consumer search activity increases as the consumer moves from situations limited problem solving to extensive problem solving. The pre purchase search for the car includes the survey the options available on the basis the following: a) b) c) d) e) f) g) h) i) j) k) Price Size, space , comfort Easy availability Brands Features Fuel efficiency Low- maintenance cost Re-sale value Reputation the company Style Credit facility , Discounts

The external sources relied on the above data are: 1) Dealers guidance

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2) 3) 4) 5) 6)

Marketing efforts used by the Company Word mouth Friends, relatives , pear groups. Family members Past experience with a brands

The internal sources are the: Psychological Field: 1) Motivation: As vehicles parts satisfies a safe transportation , communicating need, safety need, , personal need the consumer, the motivation is basic in nature. Also Delhites pose an inclination towards buying a car due to underdeveloped , erratic public transportation system , long distances in Delhi. The degree the perceived risk involved in the purchase the car is more therefore the time in the

consumers use large , extensive search , evaluation tactics. On analyzing the responses from the questionnaire I infer that the customers in Delhi spend a lot search , purchase decision vehicles parts. 2) Personality: Ownership a car is a reflection who you are. Driving a particular

feels its an expression the personality. Moreover Delhites believe that their personality is mirrored through the choice their cars. 3) Perception: A positive experience leads to the formation a positive perception about a brands vehicles parts a negative experience with a brands would reduce the brands , image , hence brand loyalty. 4) Attitudes: People buy cars for all sorts reasons. Some just want a reliable vehicle prestige,

that will get them from one destination to another. For few, it is the symbol status , self-image. For others, it is the potent symbol independence.

5) Beliefs: Beliefs are a consumers subjective perception how well a product or brands , performs on different attributes. Beliefs are based on personal experience, advertising, , discussions with other people 16

6) Learning: The purchase vehicles parts follows an experiential learning process. This is so as the experience tends to alter the purchasing behaviour the customer. This is so because it concerns his or her familys risk. So if the customer derives satisfaction from a particular brands , car it would go in for further purchases or recommend others about that particular brands , or else would switch. 3) Evaluation the Alternatives: When evaluating the potential alternatives, consumers tend to use two types information: 1. A list (evoked set). 2. The criteria they will use to evaluate each brands , (or model). The automobile industry is basically divided into three segments: Mini cars (Alto, Santo, Zen, Indica, Wagon R, Palio, Swift), Mid segment cars (Accent, Ford Icon, Esteem, SX4, Verna, Honda City ) , Luxury segment (Octavia, Honda Accord, Sonata, all possible brands ,s (or models) is a Mercedes). Making a selection from sample brands ,s (or models) from which they plan to make their selection

human characteristic that helps simplify the decision making process.

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Purchase Decision Process: The Criteria for vehicles parts Purchase

Factor

Most Important Factor (%)

Ease maintenance/repair Quality compared to other brands Price compared to other brands High-quality brands Style/look brands

61% 61% 58% 54% 46%

4) Decision Making: The purchase vehicles parts is Extensive , Extended decision-making process. This is because: A car or an automobile is a High involvement product. TYPES CONSUMER PROBLEM-SOLVING PROCESSES Routenized Used when buying frequently purchased, low cost items Used when little search/decision effort is needed E.g., buying a quart orange juice once per week

Limited problem solving

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Used when products are occasionally purchased Used when information is needed about an unfamiliar product in a familiar product

category Extended problem solving Used when product is unfamiliar, expensive, or infrequently purchased E.g., buying a new car once every five years

Purchase Decision Process: Involvement & Problem Solving Variations

Low Routine problem solving
(E.g., milk , bread)

Limited problem solving (E.g., small appliances)

Extended problem solving (E.g., stocks , cars)

High Source: Consumer Behaviour by Leon G. Schiffman & Leslie Lazar Kanuk. p.549 Purchase Decision Process: Four Types Buying Behaviour

Low

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Level Involvement

Complex

Variety-seeking

Dissonance Reducing

Habitual

High

Low

Source: Consumer Behaviour by Leon G. Schiffman & Leslie Lazar Kanuk. p.549

Buying vehicles parts

is a complex decision making process since the Brands ,

difference is significant , the level involvement is also high since buying a car is next to the purchase a house due to the costs , other risks involved.

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High Involvement:
1. It is expensive also has a lot risks attached to it like emotional risk, functional risk, financial risks etc, , can have serious personal consequences ,/or reflect ones social image. 2. It typically entails extensive information search, consideration several product attributes , brands the formation attitudes, , word- -mouth communication. 3. Purchase Behaviour & Post Purchase Evaluation: We have inferred that the people in Delhi uses the conjunctive decision Rule , compare the various alternatives on the basis Brands , price, Fuel consumption for buying the vehicles parts. The output consumer decision-making is the post purchase evaluation. The car seems to satisfy a number needs posed by the customer as majority replies

showed its repurchase, post consumption (not necessarily the same brands , or model) if they had the resources to buy. This shows that: 1) 2) . Actual performance meets the promises made to the customer. Or its consumption has delivered the desired results.

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OBJECTIVES OF THE PROJECT

1. Analyze the consumer behaviour purchasing the vehicles parts in

India.

2. To do comparative study various attributes of vehicles parts

available in India.

3. To identify the difference in market performance various segment

cars.

4. To compare various parameters

customer satisfaction for the

vehicles parts

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RESEARCH METHODOLOGY
Research Design: Definition: "A research design is the arrangement condition for collection , analysis

data in a manner that to combine relevance to research purpose with economy in procedure". Research design is a conceptual structure within which research is conducted. constitutes the blueprint for the collection, measurement analysis design is needed because it facilitates the smooth sailing It

data. Research

the various research

operations, thereby making research as efficient as possible yielding maximum information with minimum effort, time , money. Research design for advance planning methods to be used for collecting the relevant data , the techniques to be used in their analyses. Preparation research design should be done with great care as any error may upset the entire project. Therefore it is imperative that an efficient design must be prepared before starting research operations. The design helps the researcher to

organize his ideas in a form whereby it will be possible for him to look for flaws , inadequacies. The following questions have to be answered in a research design: 1. What is the study about? 2. Why is the study being made? 3. Where will the study be carried out? 4. What type data is required? 23

5. Where can the required data be found? 6. What periods time will the study include? 7. What will be the sample design? 8. What techniques data collection will be used? 9. How will the data be analyzed? .Source Secondary Data The major aim the study was to analyze the competition on the market. Therefore I

need to gain knowledge about the. Vehicles parts. In order to accumulate this knowledge all kind secondary data was collected to get the relevant information. Secondary data sources were: Internet sites Company Annual Report Reference books , Auto magazines. Methodology for Collection Primary data: Conducting a questionnaire survey keeping in mind the following was used to collect the primary data: Identification the right , relevant target group.

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Use Close-ended Structured undisguised questionnaire to be filled by the target.

Comparison , analysis results.

The questionnaire was used to determine the following a Examine the psychographics potential vehicles parts customers b Probe the buying behaviour car owners/non car owners c Find out the expectations people regarding the vehicles parts d To judge the awareness level vehicles parts its competitors amongst people e To find out the customer perceptions about vehicles parts.

Sample selection:

The sample was selected using judgment sampling Target Respondents vehicles parts Owners in , around the Lucknow. The sample size was restricted to 50 respondents only.

Assumptions:

The sample size represents the entire population vehicles parts owners. 25

The respondents do not give biased answers.

These were some the sources through which up-to-date relevant data was collected. It is one time ,money. the best methods to collect data because economy in terms

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LIMITATIONS THE PROJECT

1. Survey was only conducted in Lucknow.

2. Limited numbers questionnaires were filled in different age groups due to time constraint.

3.The final results are based on the responses the respondents, which may be biased.

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MANUFACTURER: HYUNDAI MOTOR INDIA Sonata

Body Brakes Front Rear Type Dimension & weight Fuel Tank capacity Ground Clearance Kerb weight Overall Height Overall Length Overall Width Wheelbase

Three Box 4 door Saloon

Disc Disc Diagonal,dual circuit,hydraulic,power assisted

70 (mm) 170 (mm) 1443/1529 (Kg) 1475 (mm) 4800 (mm) 1832 (mm) 2730 (mm)

Engine Displacement 2359 (cc) Ignition Electronic Distributorless No. cylinders / 4 cyl in-line,DOHC, 16V arrangement / Valves Transmission 4 - Speed H-Matic Performance

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Max. Power Max. Torque

165/5800 23.6/4250

Steering Min. Turning Radius Type Suspension Front Rear Tyres & Wheels Type Tyres Tyres

5.46 (m) Rack & Pinion

Independent Double Wishbone with coil spring , gas shocks , stabilizer bar Fully independent Multi-link with coil springs, Gas shocks , anti- roll bar

Aluminum Alloy 215/60 R16 (Tubeless) 6.5j x 16

Comforts Rear Map Reading Lights Front Map Reading Lights Room Lamp with delayed f Trunk Light Glove Box With Cover, Illumination , lock Cigar Lighter with Illumination Front Ashtray with Illumination Rear Ashtray Door-mounted Full-size Armrest (Front & Rear) Rear Centre Armrest with Cup Holders Pull Strap on Rear Centre Armrest Double level Front Centre Armrest Front Door Map Pockets Body Coloured Outside Door H ,les Door Opening Knob Inside Chrome Assist Grips Coat Hooks on Assist Grips 33

Clutch Footrest Door Courtesy Lamp Std Door Scuff Low Fuel Warning Lamp Power outlet in trunk RHD Controls Chrome Gear Shift Knob Chrome Surround Gauge Crash Pad mounted Ignition switch Illuminated Ignition Instrument panel Illumination Control Adjustable Front seat Headrest Adjustable Rear seat Headrests Lockable Fold down rear seat back 8-Way Adjustable Driver seat Tilt-Steering Driver Seat Lumbar support Moquette Seats & Trim Air Conditioning with Heater Steering Wheel Rear A/C Duct Power Windows ( Front & Rear) with Auto-down Power Window operation after Ignition cut- f Power Steering Electric Adjustable ORVM Retractable Power ORVM Housing Headlamp Assist (levelling) Woodgrain Fascia Alloy Wheels Tachometer Carpet Floor Mats Battery Saver Sunglass Holder Electric Fuel filler & Trunk Release Luggage Tray in Spare wheel in trunk Retracting Seatback Pockets Digital Clock Hood & Trunk Gas Lifters

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Ticket Holder Vanity Mirror

Safety & Aesthetics Dual-Member Side Impact Protection Front Seat Belts Height Adjustable Front Seat Belts Rear Seat Belts Child-Safety Rear Door Locks Energy Absorbing Collapsible Steering Column Central Door Locking Day & Night Mirror HMSL Anti Submarine Seats Driver Side Air Bag Passenger Side Air Bag Immobilizer Keyless Entry with Security Alarm ABS Seat Belt Pretensioner with Load Limiter & buckle sensor 5-mph Bumpers Laminated Windscreen Rear Defogger Front Mud Guard Rear Mud Guard Twin Exhaust Front Fog Lamps Headlamps (Projection Lamps)

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MANUFCATURER: MARUTI UDYOG LTD SX4

Body Brakes Front Rear Type Dimension & weight Front Track Fuel Tank capacity Gross Vehicle Weight Ground Clearance Kerb weight Overall Height Overall Length Overall Width Rear track Wheelbase Engine Bore x stroke Compression ratio Displacement Fuel System No. cylinders / arrangement / Valves Type

Three Box 4 door Saloon

Ventilated Disc Drum, leading / trailing Vacuum assisted hydraulic

1440 (mm) 51 (Litre) 1500 kgs 170 (mm) 975 (kg) 1390 (mm) 4225 (mm) 1690 (mm) 1435 (mm) 2480 (mm)

75.0 x 90.0 (mm) 9.2 +/- 0.2:1 1590 (cc) Multi Point Fuel Injection 4 cylinder, in-line, 16 Valves All- Aluminium contemporary, SOHC

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Performance Max. Power Max. Torque Steering Min. Turning Radius Type Suspension Front Rear Transmission Transmission type Tyres & Wheels Tyres

94 bhp @ 6000 rpm 132 Nm @ 3000 rpm

4.9 (m) Rack , pinion with hydraulic power assistance

Mc Pherson strut & coil spring with an L shaped lower arm , anti roll bar Mc Pherson strut & coil spring with parallel link arrangement

5 Forward, all-synchromesh

165 / 80 R 13

Comforts (2-speed + time controlled intermittent) 3-Spoke urethane steering wheel Air Conditioner Illumination System Alloy wheels Ash Tray Illumination Assist Grips- 3 Nos. Back door/trunk lid opener Cabin lights (3 Positions) Chrome plated front grill Chrome plated window lining Cigarette Lighter Coloured Bumpers Cup Holder Day/night inside rear view mirror Electric Windows

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Electrically adjustable outside rear-view mirror Electrically Operated A/C Louvre Switches Fabric material for front , rear seats Floor mats Foot Rest Front & Rear Mud Flaps Front door armrests Front door pockets (both Sides) Front seat back pockets Front seat height adjuster (driver's side) Fuel lid opener Green tinted glass Heater Instrument Panel Light Adjuster Instrument panel light intensity adjuster Key Not Removed' Warning Buzzer Leather Steering Cover Light- f Reminder One coat hook Power antenna

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Rear ashtray Rear seat centre armrest Rear spoiler with LED stop lamps Reclining , sliding front seats Semi-concealed windshield wiper Shade b , on windshield Silver finish centre console Stereo with AM/FM, Remote-control, digital clock , 4 speakers Sun visor (Both Sides) Tachometer Ticket holder (driver's Side) Tilt Adjustable Power Steering Tripmeter Trunk room light Vanity mirror (passengers side only) Velour carpet for luggage compartment Velour floor carpet

Safety & Aesthetics

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Adjustable front seat head restraints Central Door Locking Child-pro rear door locks Collapsible steering column Height adjustable front seatbelts Lockable glove box Rear seat belts Rear window demister Remote keyless entry Side impact beams Side protective moulding

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MANUFACTURER: MITSUBISHI MOTORS LTD. Cedia

Body Brakes Front Rear Dimension & weight Fuel Tank capacity Ground Clearance Overall Height Overall Length Overall Width Wheelbase Engine Type Performance Max. Power Max. Torque Suspension Front Rear Transmission

3 Box 4 Door Sedan

Ventilated Disc Brakes Leading & Trailing Shoe Drum Brakes

50 (L) 185 (mm) 1430 (mm) 4290 (mm) 1690 (mm) 2500 (mm)

4 cyl. Inline SOHC 8Valve IDI Diesel

68 / 4500 12.5 / 3000

Front McPherson Strut & Coil Spring with stabiliser bar Rear Independent Multi-link Suspension with stabiliser bar

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Transmission type 5-speed Manual Tyres & Wheels Tyres 175/80R13 Comforts Air Conditioner with Rear Dust Power Steering Tilt Steering Column Power Window Center Door Locking Rear Defogger High Adjuster (Driver Seat) Door Mirror 80W / 130W Power Tuner / MP3 CD Player High Back Rear Seat With Central Arm Rest Front Seat Head Restraints Leather Insert (XL Type) Steering Wheel Safety & Asthetics Collapsible Breakable Steering Side Impact bars Centrally Mounted fuel tank Integral Front Head Lamps Rear Combination lamp Muffler Cutter

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MANUFACTURER: TOYOTA KIRLOSKAR MOTORS LTD Camry 2.4L A/T

Body Brakes Front Rear Dimension & weight Front Track Fuel Tank capacity Gross Vehicle Weight Ground Clearance Kerb weight Overall Height Overall Length Overall Width Rear track Wheelbase Engine Bore x stroke Compression ratio Displacement Fuel System No. cylinders / arrangement / Valves Performance Max. Power Max. Torque

Three Box 4 door Luxury Sedan

Ventilated Disc Solid Disc

60 Litres 1985 mm 160 mm 1470 - 1545 kgs 1480 mm 4815 mm 1820 mm 1575 mm 1775 mm

88.5 mm X 96.0 mm 9.8 : 1 2362 cc EFI 4 cylinders, In line type, 16-valve DOHC, with VVT-I

123 kw (167 ps) / 6000rpm 224 Nm (22.8kg-m) / 4000 rpm 43

Steering Min. Turning Radius Type Suspensions Front Rear Transmission Transmission Type Tyres & Wheels Tyres Wheel size

5.5 m Rack , Pinion Power steering

MacPherson strut Duel link strut

5-speed A/T with ECT

215 / 60 R 16 Radial -

Comforts Design Concept HID Projector type Headlamp Rectractable headlamp cleaner Auto Light Control System Rear Combination Lamp Aero Wiper Blades Rain sensing Wipers New 16" alloy Wheels hydrolic Outer Rear View mirror Printed Antenna Large glove Box Accessory box Ashtrey cup Holder Front console side pocket Console Box Accessory box behind shift Behind sun visor Front door pocket Seat back pocket

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Safety & Asthetics Vehicle Stability control Large diameter disc brake ABS with EBD Brake assist Impact absorbing structure SRS Airbags Seat belt -pretensioner , force limiter Head impact protection WIL ( Whiplash Injury Lessening) Pedestrian injuiry reduction structure

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TOYOTA KIRLOSKAR MOTORS LTD Corolla 1.8 G Automatic

Body Brakes Antilock brake system Front Rear Dimension & weight Front track Fuel Tank capacity Ground clearance Kerb weight Overall Height Overall Length Overall Width Rear track Wheelbase Engine Bore x stroke Brake Horse Power Compression ratio Construction Displacement Fuel Type Ignition Layout

Three Box 4 door Sedan

Not Available 140mm ventilated discs 140mm solid discs

1480 mm 50 litres 180 mm 1185 kgs 1500 mm 4530 mm 1705 mm 1460 mm 2600 mm

79mm x 91.5mm 125bhp @ 6000rpm 10.0:1 Alloy Block & Alloy Head 1794 cc Unleaded Petrol Electronic MPFI 4-inline

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Torque Valve gear

158Nm @ 4200rpm 4 valves per cylinder, DOHC, VVT-I

Fuel consumption City Highway Overall Power train Transmission Type Steering Type Suspension Front Rear Tyres & Wheels Tyres Wheel make Wheel size

n.a. n.a. n.a.

4 Speed Automatic Front Wheel Drive

Rack & Pinion, Power assisted

Mcpherson strut type with stabilizer ETA beam type suspension with toe control torsion beam & coil spring.

195/65 R15 Alloy 6.0J x 15

Comforts Air Conditioner Power windows Full Fabric Trim (Leather Optional) Climate Control Electrically Retractable Mirrors Tinted Glass Safety & Asthetics Air Bags (driver & passenger side) Power Steering 47

Central Locking Alloy Wheels Seat Belts 6 CD changer Global Outst ,ing Assessment (GOA) body for crash safety Fog lamps Rear Defogger Side protective mould with chrome insert Chrome door h ,les

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MAUFACTURER: DAIMLERCHRYSLER INDIA P. LTD. E 240 V6

Body Brakes Type

Three Box 4 door Saloon

Sensotronic Brake Control (SBC), front disc brakes internally ventilated, solid rear disc brakes, drum parking brake at rear, ABS, Brake Assist, ESP

Dimension & weight Boot space Fuel Tank capacity Gross vehicle weight Overall Height Overall Length Overall Width Wheelbase Engine Bore x stroke Displacement Mixture formation No. cylinders / arrangement / Valves Performance Max. Power Max. Torque

540 litres 80/8 2105 kg 1452 (over ro rail) 4818 (mm) 1822 (mm) 2854 (mm)

89.9 Nm @ 68.2 rpm 2597cc Microprocessor controlled fuel injection with hot film airflow sensor (HFM) 6 / V, 3 valves per cylinder

123 kW @ 5750 rpm 225 Nm @ 4500 rpm

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Steering Type Suspension Front Rear Tyres & Wheels Tyres Wheels

Power-assisted rack- ,-pinion, steering damper

Four-link suspension, McPherson struts, anti-dive, coil springs, gas-pressure shock absorbers, stabiliser Multi-link independent suspension, anti-squat , anti-dive, coil springs, gas-pressure shock absorbers, stabilizer

225/55 R 16 95 V 7.5 J x 16 H2 ET 42

Comforts 4 power windows Leather steering wheel in the interior colour Armrest with stowage compartment Shift lever gaiter , knob leather-covered Instrument cluster with chrome surrounds Side rub strips with chrome inserts Bumpers with chrome strips Sun visors with illuminated vanity mirrors Door h ,les in the vehicle colour with chrome strips Lumbar support Heated, electrically adjustable exterior mirrors Ambient lighting Steering wheel adjustable for height , reach Power steering Outside temperature display Headlamp Assist Central display in instrument cluster Green-tinted thermal insulation glass One-touch wiper function Seat belts in interior colour THERMATIC automatic climate control with dust filter Light alloy wheels Multifunction steering wheel 50

Fine wood trim in brown burr walnut

Safety & Asthetics Belt tensioners/belt force limiters in the front & on the outer rear seats Front sidebags Windowbags Anti-lock braking system (ABS) Brake Assist SPEEDTRONIC with cruise control Three rear head restraints Fog lamps Automatic child seat-recognition Three inertia-reel seat belts in the rear Central locking with crash sensor

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FINDINGS

The automobile industry in the country is booming , there are lots choices, which are available in the market. In this section we will look at the different vehicles parts which are available in the Indian market, , the price range at which they come. A segment or the entry-level segment in the Indian Car industry has been dominated by one car over the decades. The Maruti 800 from the stable one the largest cars makers in the country Maruti Udyog falls under this category cars. These cars have single , changed the perception cars in the country , have provided an easy option for those

who want to graduate from a two- wheeler to a car. Tata Motors' dream providing a one lakh rupee car would revolutionize this segment but till then Maruti 800 will continue to rule the roost with another product from Maruti stable Alto catching up with it. There has been a shift in the market in which these cars are being sold. Since a large number towns in India will not come under the Euro III norms it makes little sense for the people in these places to shell out extra money for cars, which have to conform to Euro III norms. The D-segment is the fastest growing category cars , according to the industry

sources; it is growing at a healthy rate 35% per annum.

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Cars in this segment for luxury , they come with a hefty price tag, but who cares when you have loads money , an array luxurious wheels to choose from. These cars

provide you the ultimate luxury , are fitted with the state the art accessories.

53

Below are the list luxury cars, which are available in the country , the indicative price tag:
Registration Registration ExShowroom Skoda Octavia Ford Mondeo Duratec Petrol GM Aveo 1.6 LT Honda Accord V6 Honda City ZX EXi Hyundai Sonata Embera 2.4 AT Maruti Baleno Vxi BSIII Mitsubishi Lancer XL 2.0L Diesel Toyota Corolla 1.8 G Automatic Mercedes E 240 V6 1,094,310 4,097,341 5,180 187,191 5,180 531,572 40,054 148,606 1,139,544 4,433,138 1,139,544 4,777,519 700,448 964,200 51,956 43,568 100,988 120,704 27,010 37,901 779,414 1,045,669 828,446 1,122,805 & Service Charges & Service Comprehensive Charges Insurance 49,700 49,177 28,763 64,197 25,245 53,927 Total Total (Individual) (Company) 1,447,448 1,613,512 809,071 1,890,722 763,940 1,561,361 1,447,448 1,613,512 909,859 2,025,192 817,497 1,561,361

(Individual) (Company) 1,339,498 58,250 58,250 1,556,185 719,914 1,754,290 708,056 1,444,965 8,150 60,394 72,235 30,639 62,469 8,150 161,182 206,705 84,196 62,469

These are only a few luxury cars, which are available in the country, , with each passing day the list is sure to increase. India is fast emerging as an important market for cars. In terms its car market, India

ranks third in Asia having recently displaced South Korea from the position. The car sales have almost doubled in a span 4 years from 2003-05 to 2007-08. The following chart explains the growth car sales in India during the aforementioned period.

Passengers Vehicles From April- From AprilTotal (PVS) November November Market 06-08 08-09 Share (in

The Net Change between

Total number exports in

54

%)

the period April 08-09 (in %)

Maruti Udyog Hyundai India Ltd. Tata Motors Honda Siel India Ltd.

2,69360

2,91,182 1,07, 066 24,348 24,348 10,512

52.2 19.2 16.6 4.4 1.9

8.1 20.2 -2.7 5.1 -30%

23,043 68,374 12,105 31 9,928

Motors 89,075 95,402 Cars 23,186

Ford India Pvt. Ltd 15,026

Utility Vehicles Mahindra Mahindra Ltd. , 49,897 51,540 24,983 42.7 20.7 3.3 2.4 1,878 0

Toyota 24,404 KirloskarMotorPvt Ltd. Tata Motors Ltd 19,967

21,610 12,027 2472 1,042

17.9 10 2 0.9

8.2 71.6 -7.8 308.2

905 0 54 0

General Motors 7,008 India Pvt Ltd. Maruti Udyog Ltd . 2682 Hyundai India Ltd. Multi-Purpose Vehicles Maruti Udyog Ltd. Mahindra Mahindra Ltd 42,388 & 13 Motor 255

43,858 0

100 0

3.5 0

731 0

55

Medium , Heavy Commercial Vehicles Tata Motors Ashok Leyl , Eicher Motors Swaraj Mazda Light Commercial Vehicles Passenger Carriers Tata Motors Mahindra Mahindra Swaraj Mazda Force Motors Ltd. Goods Carriers Tata Motors Mahindra Mahindra Swaraj Mazda Eicher Motors 30,955 , 23,563 2,671 3,019 44,380 23,731 2,299 2,954 58.9 31.5 3 3.9 43.4 0.7 -13.9 -2.1 12,461 1,600 204 451 5,835 , 2,305 1,178 2,059 6,811 1,960 1,315 2,877 46.8 13.5 9 19.8 16.7 -15 11.6 39.7 1,096 115 12 59 79,614 27,577 8,043 3,573 73,538 33,406 8,700 4,080 61.1 27.7 7.2 3.4 -7.6 21.1 8.2 14.2 4,807 2825 318 115

The table has been drawn according to SIAM Sales report from April-November 2008. Indian Market Analysts are jubilant over the fact that India has the fastest growing automobile industry (passenger cars segment) in the world today. This is seen as the 56

result

rapid increase

middle-class population in the country combined with the

government's pro-development policies. The findings International Organisation Motor Vehicle Manufacturers revealed that

in India the car production had grown to 30% in 2007, thus leading the table, Brazil came a distant second with the increase 17%. The table below attempts to capture in figures the rapid growth Automobile Sector in India. Types Vehicle Passenger Vehicles Utility Vehicles Multipurpose Vehicles Total 2005-06 557400 114470 51450 723320 2006-07 782550 146330 60670 989550 2007-08 960480 182020 67370 129870 2008-09 1045880 196380 66665 1308925 production

Current buyer behavior trends A most important factor influencing car purchase is vehicle performance, followed by vehicle design , comfort. Buying a car is an emotional decision for most people, with a vague "Want to own" a car topping the reason for buying a car, followed by more functional "travel ten" , "vehicle" attraction. Maruti 800 has the highest recall in consumer minds among all other br ,s, closely followed by Maruti Zen , Hyundai Santro. But as far as car ads go, people like the Hyundai Santro ads most (thanks to superstar Shahrukh Khan's presence) followed by Maruti Zen.

57

Among age-groups, Hyundai Verna has a higher popularity among 25-34 year olds, Honda City is more popular among 35-44 years old, while the Zen takes the cake for 45-54 years old. Among those thinking to buy a car, Maruti Zen , Hyundai Santro top the list probable buys, followed closely by Maruti 800. People get most their

information on cars from their friends, followed by past experience owning or driving a vehicle. Earning drivers for the Dem , Cars The dem , for cars is dependent on a number factors. The key variables are: 1. Per capita income 2. Introduction new models 3. Availability , cost car financing schemes 4. Price cars 5. Incidence duties , taxes 6. Depreciation norms 7. Fuel cost , its subsidization 8. Public transport facilities The first four factors viz. increase in per capita income, introduction availability , cost new models,

car financing have a positive relationship to the dem , whereas

others have an inverse relationship to dem , for cars. The dem , for cars in the future is expected to come predominantly from the existing two-wheeler owners who will be

58

upgrading to a four-wheeler, to rising income , necessity. With the release

new

models in the higher end the economy segment, the supply second h , economy cars is expected to increase substantially, which will cost just about twice the price premium range two-wheelers. This could affect the dem , for new cars. Growth in the car segment is therefore expected to hover around 15-20 per cent year on year. Government policy: The GOI policy will continue to dominate the supply cars. The different norms with great significance to the sector are import duty on CKD/ SKD kits, auto components, foreign exchange , neutralization schedule for new ventures etc. Excise duty: The car industry had been asking for reduction in excise duty so as to reduce the end prices cars to customers , increase the slogging dem ,. With

continuation liberalization , shift in the perception ( car being a luxury product) will lead to reduction in duties over a period two to three years. This will reduce the prices cars leading to further boost in dem ,. Sales tax duty: The levy uniform sales tax in all the states will have a negative impact on the dem , front, due to increased prices. Competition in the sector: With the entry all the world majors in the car segment, the competition is expected to heat up substantial in the next two years. This will lead to shakeout in the industry , only those companies having a backing multinationals with strong commitment will be able to continue operations in the segment. This may also lead to take over activity in the Indian car industry.

59

Release

new models: The flood

variations in existing , new models will provide

wide range

choice for the customer one year down the line. Also these new models

will be able to carve a niche for themselves in the crowded market.

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SURVEY ANALYSIS
1. Do you own vehicles parts from Suparbha Pvt Ltd?

No 20%

Yes 80%

Findings: 80 % the respondents own vehicles part. The reason for this is that the sample was chosen such that most the respondents had vehicles parts thus actual information on cars could be drawn.

61

2. If yes, which vehicles parts do you own?

12 11 10 8 8 6 4 4 2 0 3 4 2 2 6

Hyundai

Maruti

Toyota

Chevrolet

Ford

Honda

Mercedes

Skoda

Findings: As per the bar graph the most popular cars in this segment are Honda & Toyota followed by Ford & Hyundai .

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3. Have you purchased the vehicles parts from any other company?

100 94 90 80 70 60 50 40 30 20 10 0 Yes No 6

Findings: After the survey it was observed that the vehicles parts purchased by the consumers from the subarbha pvt ltd.

63

4.

When do you replace or you buy a car because of bad parts?

10%

0-3yrs 30% 60% 3-6 yrs 6yrs & above

Findings: 60 % respondents said that they replace the within the first three years. 30 % respondents said that they replace the car in 3-6 Years. The primary reason for replacement being the end the term finance. This enabled the respondents to apply for fresh loans , go in for new cars.

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5.

You bought vehicles parts of cars because

80 70 60 50 40 30 20 10 0 Increase in disposable income Reduced risk of accident Family needs Increase in Suits your family size lifestyle and personality Others

75 60 60

30 20

Findings: The first reasons for most

the respondents to go because it suits the

lifestyle , personality. The second reason as identified by survey is the increase in family size that makes D & E segment cars affordable.

65

6. You decided to buy your existing car because from 1-3 in order your preference)
7 6 5 4 3 2 1 0 Hyundai Maruti Toyota Chevrolet Ford

( rate best 3 factors

Honda

Mercedes

Skoda

Affordable price Comfort Value for money After sales service

Technical superiority over competition Manufacturers image Safety Others

Findings: Hyundai: Respondents bought Hyundai Sonata because SX4 bought it because

its affordable

price , because Hyundais good after sales network. Respondents who had Maruti Marutis Image , after sales network. Toyota Camry & its technical superiority over competitors. GM its Technical superiority. Similarly Honda was Corolla was purchased because Ford was preferred because

Models were purchased as they were affordable in comparison to its competitors. preferred for its technical superiority , Hondas image. Mercedes , Skoda were mainly purchased for their br , image.

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7. You sought advice from the following before deciding about which vehicles parts to buy

35 30 25 20

34

22 16

15 10 5 0

12

12

Friends

Family Members

Car Owners Automobile Expert

Dealers

Any other

Findings: Most the respondents took the family advice before buying a car. While others referred to friends, other car owners , dealers advice on the car. While others looked for experts advice in auto journals.

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8. Major decision maker in your family for buying the car will be:-

1%

7%

0%

1%
Parents Spouse Self Children Everybody

91%

Findings: Most the respondents said that they are the major decision makers in the family.

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9. What sources information you looked out for in order to gather data about various vehicles parts co. existing in the market?

50 45 40 35 30 25 20 15 10 5 0
New spaper and Magazine Television Word of mouth publicity Dealers

50

20

10

10

10

0
Test drives and promotional camapigns Others

Findings: Most the respondents took a test drive during promotional campaigns before buying the new car. They also referred to Newspapers, televisions , dealers for information on the cars parts.

69

10.

Sources finance your existing car parts was

60 60

50

40 30 30

20 10 10 0 0 Personal resources Bank loans Company loans Financial institutions Others 0

Findings: Most the respondents sought a bank loan for financing the car.

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11. Why do you think people are buying cars parts these days? (rate from 1-4 in order preference)
4 3.5 3 2.5 2 2 1.5 1 0.5 0 Hyundai Maruti Toyota Chevrolet Ford Honda Mercedes Skoda 1 1 1 1 1 2 3 3 3 3 4 4

Manoeuvaraility in traffic condition

Self Esteem

Looks

Comfort

Findings: Self Esteem, Looks & Comfort are the main reasons that people go for vehicles parts.s The comforts with looks represent their lifestyle.

71

12. Are Warranty, safety Standard important in your decision for buying vehicles parts?

No 10%

Yes 90% Findings: More than 90% respondents were ready to pay extra price for warranty , the safety standards?

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CONCLUSION
Family needs reign supreme as a reason for car purchase. Surprisingly many car owners bought their car as it suited their lifestyle , personality. Family is the focal point a car purchase. The decision to buy a car is a collective one made by the whole family. The car is bought not to fulfill the needs one particular family person but to cater to the

entire family's needs. Therefore the car should be a family car, which can satisfy the needs the whole family. In order to attract these people to a new purchase, companies must hit them at the above point. It should be projected to fit into the lifestyle these people or rather better their lifestyle. People consulted by car owner/non car owner before car purchase. Potential car buyers consult family the most. They tend to obtain information from people already owning the car. The reason could be that, they are a little apprehensive about the purchase , want to quench their anxiety. Car owners also tend to consult these people but their number is appreciably less than the non-car owners. Although the family is the most consulted, before making a purchase decision, none the factors can be ignored. People already owning a particular car is also consulted by a large number buyers. Companies should make sure that the early buyers potential

the car are completely

satisfied by the car's performance. These early buyers act as information sources for the followers. Any negative publicity on their part may turn away the potential customers.

73

Dealers are one the most important set people for companies. These are the people who directly communicate with the customers. Therefore companies should make sure that these people are highly motivated, knowledgeable, , friendly , customer oriented. The car owners as well as non-car owners are most influenced by newspaper magazine ads , reports. Word mouth publicity cannot be ignored. Most the respondents use personal resources to obtain funds for the car purchase. Most these people save money for a long to collect the required amount. There is lot ,

emotional attachment when a car is bought from personal funds , Companies should duly, provide value for money for people in terms low maintenance costs. Fuel

efficiency etc. A lot banks are financing for cars. This concept is new but is catching fast in the big cities. Companies have tied up with ICICI, Standards Chartered , other banks to come up with joint schemes for car finances for the car. It can be seen that nearly half the car owners want to replace their existing cars with a luxury car. This attitude could be due to additional features in the new cars, which may attract these people, or the non-performance replace the car. The price the vehicles parts should be competitive. Price is the first major hurdle, their existing car may compel them to

which a customer has to jump over before making a purchase decision. Too high a price may discourage many potential car buyers , a very low price may raise doubts about the car" performance capabilities.

74

As far as fuel efficiency , maintenance cost are concerned, these should satisfy the customer's expectations. These two features are the most general features, which are compared when people compare two cars. The main reason for popularity car is luxury at nominal price; companies should also make the car competitive in terms price. It should be easy to drive in traffic conditions on empty roads, should have low maintenance cost, should be fuel-efficient , fulfill small family needs.

75

KEY FINDINGS
Perception Is Reality A strong car brands can create significant value in the automotive industry. For massmarket cars, brands helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model vehicle within the br s,. Its no surprise that most auto manufacturers make brands , positioning , development a key item on their marketing agenda. Yet despite intense interest in their power, automotive brands remain relatively poorly understood. Since a prominent role the brands , positioning , development play in many auto

manufacturers business strategies, I conducted extensive research , analysis to better understands , how consumers think about car brands. My analysis uses simple questionnaire interviews to distill multiple brands image attributes into a small set

underlying factors, which provide valuable insights into consumer brands , perceptions. My research shows that consumers have a simple yet sophisticated understanding what differentiates car brands. Notwesting automakers attempts to distinguish their brands on the basis lifestyle or emotional imagery, consumers evaluate brands in terms their earned reputation for product excellence relative to their total ownership cost. Consumers perceptions are based on their accumulated direct , indirect experience with the products that constitute those brands. These perceptions are obviously not perfect. Some brands reputations exceed or fall short their demonstrable product attributes. relatively immune to

But, as a rule, consumers beliefs are accurate, stable,

manipulation. In contrast to the situation with consumer goods, in which equity is created

76

substantially through advertising, automotive brands

perceptions change primarily

through consistent , sustained changes in the underlying product portfolio. Within this conclusion, I was able to identify five central insights that are critical to understanding ,in how, to what extent, manufacturers can enhance , leverage the value their brands. 1. Virtually all the difference in how consumers perceive competing brands can be explained by their relative performance against two holistic measures: product excellence , cost. Traditionally, car manufacturers have tried to measure their brands across a large number image attributes, hoping to develop additional insights about a brands, reputation are

brands , differentiation. However, consumer perceptions generally consistent across different measures

value. For example, consumers believe

that manufacturers whose car lines have a reputation or luxury , prestige tend to produce cars that excel in many other areas, such as ride, safety, , reliability. In fact, a brands , score on any one attribute tends to be so highly correlated with its score on another attribute that these scores can be integrated into one measure that represents a car lines propensity to create excellent products. Consumers also have a sophisticated understanding product cost. They recognize that

vehicles differ not only in their initial purchase price, but also in their expected maintenance , operating costs, as well as their ultimate resale value. Together, these different types expenditures determine the total cost to the consumer over the

ownership cycle. As with the product excellence dimension, the various attributes that determine a brands expected ownership costs can be integrated into a single measure product cost.

77

These two holistic measures, product excellence , cost

ownership, account for 91

percent the difference in how consumers perceive automotive brands . In fact, these two holistic measures are comprehensive enough to predict the consumers overall opinion the brands , with an extremely high degree accuracy. 2. Consumers are not only elegantly simple in their view automotive brands they are acutely rational as well. For the average consumer, a new car is second only to a new home in the size individuals sense the transaction, , the potential to communicate an

self-worth. Consequently, consumers spend a substantial

amount time evaluating their alternatives. But in general, consumers are well informed, , their opinions accurately reflect the accumulated performance the products that are the physical embodiment those

brands . Similarly, consumers perceptions

a brands , reputation for durability, the holistic product excellence

reliability, , workmanship (which are key constituents

measure) are highly correlated with the actual dependability that brands , vehicles. 3. Consumers recognize that, in general, better products cost more. Consumers selfselect an automotive segment on the basis which attribute (cost ownership or

product excellence) they value more. Within a consumers chosen segment, brands ,that deliver more both attributes provide superior value to the consumer. E.g. BMW

has carved a niche within the luxury segment based on its image as the ultimate driving machine. The majority brands are not differentiated on any basis other than product

excellence , cost ownership.

78

Hyundai for having good customer service , providing a pleasant buying experience. However, the majority brands , are not meaningfully differentiated on any basis

other than product excellence , cost ownership. 4. Brands in crowded, weakly positioned brands , tend to suffer from eroding margins. Such brands naturally tend to achieve lower purchase consideration , hence volume.. They must seek to improve at least one the two holistic br , measures for their brands , Because improvement a brands , product excellence is difficult to

accomplish across an entire product portfolio , generally requires up to a decade, the only way for brands , to improve their positioning quickly is to lower product prices , fer customers better cost ownership. By contrast, Honda , Toyota have clearly the mass-market segment. In the consumers

distanced themselves from the rest

mind, Honda , Toyota represent a combination product excellence , cost ownership that so far surpasses all other competitors that they operate along a different trade f curve. 5. Brands , positions tend to change relatively little over time. Consumer perceptions are shaped in large part through accumulated product experience, both firsth , , indirect. Consumers also use a large number objective sources mouth,

information to supplement their direct product experience (e.g., word

product reviews, , safety ratings). As a result, the perception-forming process is long. Manufacturers, in contrast with most consumer goods, whose br , equity is created substantially through advertising. Although marketing communications certainly play an important role in what consumers think, the only way to sustain meaningful change in

79

automotive brands , perceptions is with ongoing, consistent changes in the underlying product experience. Over the past two decades, most manufacturers have made concerted efforts to improve product quality, develop new features, , reduce costs. They have used various techniques, such as computer-aided design, system outsourcing, , component reuse, to speed up the product development cycle, reducing the time it takes to respond to. The Hyundai brands , have benefited from a sustained flow new products that fer

significantly improved quality, attractiveness, edgy styling (at times), , extremely low cost ownership due to low sticker prices , extended warranty coverage. The resulting value proposition has not only increased these brands unit volume, but also has radically changed consumers perceptions the brands , What is stunning is how

much the Korean br ,s have improved in such a short time, especially in comparison with how long it took Toyota , Honda to shake their reputation for producing tin cans. If the Korean brands , continue to improve their reputation for product excellence while maintaining their cost ownership, they could score high on the three mass-market

brands , to join the cluster currently defined by Maruti Udyog, Tata Motors , Fiat India. In contrast, the value Maruti brands , Tata Motors has been deteriorating. Fiat Motors are doing averagely. Maruti was initially able to transfer consumers satisfaction with the dealer experience to the product. Although Maruti still remains differentiated on the basis its channel performance, the product has failed to satisfy consumers expectations for quality, the brands , as a whole has experienced significant erosion.

80

The marketing function must take an active role in balancing the drive toward lower cost ownership with the consumer value created through innovative features Lifestyle , emotional imagery cannot compensate for weak brands , options.

undifferentiated the

products. Consumers may acknowledge a brands ,personality, but the aspects

brands , that drive consumer shopping behavior are promises that the brands , represents for product excellence , cost ownership. Image advertising , lifestyle s to accelerate

consumers understanding the brands , but it cannot fundamentally change the promise. Consequently, the number resources applied toward lifestyle , image advertising should be carefully inspected for appropriateness , effectiveness. For mass-market vehicles, incentives are a symptom a weak brands , not the cause. In the absence a strong

brands ,, price is the only plausible way to affect near-term dem ,. Hence, curtailing incentives in an effort to build brands , is not likely an economically viable option. Many manufacturers have made brands , positioning , development a key item on their marketing agenda. Yet br ,s are not the product Instead, consumers base their understanding manufacturers marketing efforts.

an automotive brands ,s value on their

accumulated experience with that brands ,s products. If you want to change the Brands ,, change the products for the better.

All this shows that the internationality

the brands does have an effect on the

purchase decision the car in the minds the consumers. As we had already seen that the foreign brands ,s like Hyundai, Honda, Fiat, are doing really well due to their excellence in the product quality, technology, features, price etc. All these attributes

81

does play a very important role in comparison with the local brands like Maruti Suzuki, Tata Motors etc.

82

BIBLIOGRAPHY
Books Consumer Behavior by Philip Kotler 2006-07 Consumer Behavior 2007 by Leon G. Schiffman & Leslie Lazar Kanuk.

Aker, David, Managing Br , Equity, New York, The Free Press, 1991. Kapfer, Jean-Noel, Strategic Br , Management, Now Approaches to creating & Evaluating Br , Equity, Fifth Edition, less Editions Organization, 2002.

Kotler, Philip Marketing Management Analysis, Planning, Implementation & Control, 11th Edition, Prentice Hall India Pvt. Ltd. 2005.

JOURNALS & MAGAZINES The Automotive Component Manufacturers Association India (ACMA), JAN-

FEB 04 Automotive Engineer & Trader (Annual Number 2003) p.39-47 Investment Research & Information Services Limited. (P.48-50 7 161-167) www.Siam.com

Magazines

Cars Wars II, Business World. Over Drive. Business Standards Motoring Auto India India Todays

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Questionnaire
NAME: GENDER: MARITAL STATUS: OCCUPATION: EMAIL ID: (a) Hyundai Sonata (b) Maruti SX4 Optra (e) Ford Mondeo 1. (f) Honda Accord (c) Toyota Camry (d) Chevrolet (g) Mercedes Benz (h) Skoda Octavia

Do you own vehicles parts? (a) Yes (b) No

2. If yes, which vehicles parts do you own? (a) Hyunda (e) Ford (b) Maruti (f) Honda (c) Toyota (g) Mercedes (d) Chevrolet (h) Skoda

3. Have you purchased the vehicles parts. (a) Yes 4. (b) No

When do you replace or you buy a car because of bad parts? (a) 0-3yrs (b) 3-6 yrs (c) 6yrs & above

5. You bought vehicles parts of cars because?s (a) Increase in disposable income (b) Reduced risk of accident

84

(c) Family needs (e) Suits your lifestyle and personality

(d) Increase in family size (f) Other

6. You decided to buy your existings car because of ( rate best 3 factors from 1-3 in order of your preference) ? Hyundai Maruti Toyota Chevrolet Ford Honda Mercedes Skoda Affordable price Technical superiority over competition Comfort Manufacturers image Value for money Safety After sales service Others

7. You sought advice from the following before deciding about which vehicles parts to buy? (a) Friends (d) Automobile Expert (b) Family Members (e) Dealers (c) Car Owners (f) Any other

8. Major decision maker in your family for buying the car will be:(a) Parents Everybody (b) Spouse (c) Self (d) Children (e)

85

9. What sources of information you looked out for in order to gather data about various vehicles parts company existings existing in the market? (a) Newspaper and Magazine publicity (d) Dealers Others 10. Sources of finance of your existing car parts was? (a) Personal resources (d) Financial institutions (b) Bank loans (f) Others (c) Company loans (e)Test drives and promotional campaigns (f) (b) Television (c) Word of mouth

11. Why do you think people are buying cars parts these days? (rate from 1-4 in order of preference) Manoeuvaraility Self Esteem in traffic condition Hyundai Maruti Toyota Chevrolet Ford Honda Mercedes Skoda Looks Comfort

12. Are Warranty and safety Standards important in your decision for buying cars parts? (a) Yes (b) No

86