A COMPARATIVE STUDY BETWEEN
MARUTI AND TATA
1
EXECUTIVE SUMMERY
2
EXECUTIVE SUMMERY
The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent
amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has
been contributing to the automobile market to a great extent.
Many foreign companies have been investing in the Indian Automobile
Market in various ways such as technology transfers, joint ventures, strategic
alliances, exports, and financial collaborations. The auto market in India can
boast of attractive finance schemes, increasing purchasing power, and launch of
the latest products.
Total sales of major car manufacturers in India registered a figure of 0.674
million units at the end of March, 2007. The number of car exports in India was
39,295 units. General Motors, Maruti, and TATA MOTORS accounted for 60
percent of the market sales at the end of April, 2007. There has been an increase
in the purchase of motorcycles and cars both, in the rural as well as urban areas.
Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sale is
more than 50% of care of Indian car market. But now it is getting a good
competition with other new car company and foreign companies and its sales is
going down because other car companies are trying to present different types of
new car in different segment. So in our study in we had tried to study Maruti
Suzuki segmentation of cars and its sales trend and its effect on customer. This
project is all about segmentation and sales trend study of Maruti Suzuki. Through
our study we are trying to analyze the customer demand in different segments
and advancement required in Maruti’s segmentation. We are also analyzing
Maruti Suzuki sales trend. We had visited different dealers of Maruti Suzuki in
pune and asked some question and based on that we are tying to analyze the
data and sales trend of Maruti Suzuki. We had also collected some secondary
3
data of different study done on Maruti Suzuki and based on that we are trying to
present the sales trend analysis of Maruti Suzuki.
And if we talk about TATA detailed analysis of the company shows that the
company has had a strong fundamental as well as a strong market performance
over the years. Given the economic and the industry environment (improving
outlook for the CV industry) TATA Motors would be a key beneficiary. While a
pick-up in its CV volumes is evident, operating leverage and cost saving
initiatives will improve margins.
On an average more than 73% people feel that the prices are affordable whereas
12% do not agree, 74% believe that attractive discounts are offered whereas
26% are not satisfied with the discounts offered. 20% said that the test drives are
not offered and 15% said that post sales follow ups are not done regularly
whereas 85% said that they were done regularly but people feel that it is the
people’s car as it is satisfactory on all other parameters: knowledgeable sales
persons , employees spent enough time before and during sales, display of
merchandise is attractive, availability of product, variety of merchandize, vehicle
in good condition, prices are affordable, attractive discounts are offered, décor of
the waiting area is pleasing, responds to complaints quickly, service at TATA
Motors service station is excellent, careful with personal information and is value
for money . The overall opinion about TATA Motors is very good.
4
THE
CAR MARKET
OF INDIA
5
THE CAR MARKET OF INDIA
Indian Car Market attained a huge volume over the years with the increase in the
opportunity for new investments in the manufacturing of cars in India. The increasing
GDP rate, the rising per capita income, growing population and high ownership capacity
led to the boom in the Indian Car Market.
Causes for the boom-
From the last 15 years due to the liberalization of the Indian economy the entire market
scenario have undergone a change with the rich growing richer with time. Moreover, the
rise in the income level, change in the general lifestyle, increase in foreign traveling and
the easy accessibility of car finance on the basis of affordable installments and interest
rates have been the main driving forces behind the flourishing Indian Car Market.
Car Manufacturers In India-
Once the most popular car dominating the Indian Car Market was the Ambassador, till
the Indian car maker Maruti in the collaboration with the Japanese car giant Suzuki
brought a change in the Indian Car Market. However, today, there are numerous car
companies with new models coming up everyday in the car market of India. Some of the
leading brands are like, Hindustan Motors, Reva Electric Car Co., Daimler Chrysler India
Private Ltd, Fiat India Private Ltd., Ford India Ltd., General Motors India, TATA
MOTORS Siel Cars India Ltd., Hyundai Motors India Ltd.,Toyota Kirloskar Motor Ltd.
and Skoda Auto India Private Ltd.
Luxury and super luxury car market-
In the Indian Car Market demand for luxury and super luxury cars are increasing
continuously. Their attractive designs and brand names are the main reasons for the
growing need among many Indians who can afford these cars. Several luxury models are
to be launched in India in the coming years. As a result Indian Car Market is no longer
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alien to the luxury car companies like Mercedes Benz, Ferrari, Aston Martin and Rolls-
Royce.
Small car market-
However, it is the small car segment which still rules the Indian Car Market. During
2006-07, over 7.5 lakh compact cars were sold, with total sales record being around 1.2
million. Taking into account the bustling business in the small car sector in the car market
of India, TATA MOTORS Siel Cars has planned to introduce an entry level compact car,
in competition with the small cars like Hyundai Santro, Maruti Wagon R, Zen Estilo and
Chevrolet Spark. Another company, Skoda Auto India Private Ltd., announced the
launching of their first new small car model Skodafabia, in the car market of India this
year.
Governmental strategies:
The Government of India have taken some initiatives like the liberalizing the foreign
exchange and equity regulations, relaxing the tariffs on imports and redesigning the
banking policies which have boosted the Indian Car Market to a great extent. Thus, the
demand for all types of cars from luxurious models, SUVs to mini-cars have reached a
height in the Indian Car Market.
Future prospects-
The attractive prospects of the Indian Car Market have prepared the ground for a large
number of multi-national automobile companies from Japan, U. S. A., and Europe to
come here and work in collaboration with the Indian firms. It is expected that with this
growth rate of the Indian Car Market, it will be the third largest automobile market of the
world by 2030 after China and the US.
7
INTRODUCTION
TO
THE COMPANY
8
INTRODUCTION TO THE COMPANY
TATA MOTORS
Tata is a rapidly growing business group based in India with significant
international operations. Revenues in 2007-08 are estimated at $62.5 billion
(around Rs251,543 crore), of which 61 per cent is from business outside India.
The Group employs around 350,000 people worldwide. The Tata name has been
respected in India for 140 years for its adherence to strong values and business
ethics. The business operations of the Tata Group currently encompass seven
business sectors:
communications and information technology, engineering, materials, services,
energy, consumer products and chemicals. The Group’s 27 publicly listed
enterprises have a combined market capitalization of some $60 billion, among
the highest among Indian business houses, and a shareholder base of 3.2
million. The major companies in the Group include Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian
Hotels and Tata Communications.
The Group’s major companies are beginning to be counted globally. Tata Steel
became the sixth largest steel maker in the world after it acquired Corus. Tata
Motors is among the top five commercial vehicle manufacturers in the world and
has recently acquired Jaguar and Land Rover. TCS is a leading global software
company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and
China, besides India. Tata Tea is the second largest branded tea company in the
world, through its UK-based subsidiary Tetley. Tata Chemicals is the world’s
second largest manufacturer of soda ash. Tata Communications is one of the
world’s largest wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group
is also gaining international recognition. Brand Finance, a UK-based consultancy
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firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst
the Top 100 brands in the world. Businessweek ranked the Group sixth amongst
the World’s Most Innovative Companies. And the Reputation Institute, USA,
recently rated it as the World’s Sixth Most Reputed Firm.
Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired by
the spirit of nationalism. The Group pioneered several industries of national
importance in India: steel, power, hospitality and airlines. In more recent times,
the Tata Group’s pioneering spirit has been showcased by companies like Tata
Consultancy Services, India’s first software company, which pioneered the
international delivery model, and Tata Motors, which made India’s first
indigenously developed car, the Indica, in 1998 and recently unveiled the world’s
lowest-cost car, the Tata Nano, for commercial launch by end of 2008. The Tata
Group has always believed in returning wealth to the society it serves. Twothirds
of the equity of Tata Sons, the Tata Group.s promoter company, is held by
philanthropic trusts which have created national institutions in science and
technology, medical research, social studies and the performing arts. The trusts
also provide aid and assistance to NGOs in the areas of education, healthcare
and livelihoods. Tata companies also extend social welfare activities to
communities around their industrial units. The combined developmentrelated
expenditure of the Trusts and the companies amounts to around 4 per cent of the
Group’s net profits.
Going forward, the Group is focusing on new technologies and innovation to
drive its business in India and internationally. The Nano car is one example, as is
the Eka supercomputer (developed by another Tata company), which in 2008 is
ranked the world’s fourth fastest. The Group aims to build a series of world class,
world scale businesses in select sectors. Anchored in India and wedded to its
traditional values and strong ethics, the Group is building a multinational
business which will achieve growth through excellence and innovation, while
balancing the interests of its shareholders, its employees and wider society.
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CORE VALUES OF TATA
At the Tata Group our purpose is to improve the quality of life of the communities
we serve. We do this through leadership in sectors of national economic
significance, to which the Group brings a unique set of capabilities. This requires
us to grow aggressively in focused areas of business. Our heritage of returning to
society what we earn evokes trust among consumers, employees, shareholders
and the community.
This heritage is being continuously enriched by the formalization of the high
standards of behavior expected from employees and companies. The Tata name
is a unique asset representing leadership with trust. Leveraging this asset to
enhance Group synergy and becoming globally competitive is the route to
sustained growth and long-term success.
FIVE CORE VALUES
The Tata Group has always sought to be a value-driven organization. These
values continue to direct the Group’s growth and businesses. The five core Tata
values underpinning the way we do business are:
Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity for
our colleagues and customers around the world, and always work for the benefit
of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards
in our day-today work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the Group and with
our customers and partners around the world, building strong relationships based
on tolerance, understanding and mutual cooperation.
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Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what
comes from the people goes back to the people many times over.
TATA MOTORS LIMITED
The largest passenger automobile and commercial vehicle manufacturing
company of India Tata Motors Limited, was formerly called TELCO (TATA
Engineering and Locomotive Company), has its headquarters in Bombay, now
Mumbai, India. Established in 1945, listed on the New York Stock Exchange in
2004 has created Rs. 320 billion wealth and was one of the top 10 wealth
creators in India, With manufacturing facilities in the towns of Jamshedpur,
Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by
Ratan Tata under the flagship company known as Tata and sons group. He
commands 22000 employees working in three plants as well as other regional
and zonal offices across the length and breadth of India. Tata motor’s passenger
cars still need to reach acceptable international requirements. The company
commands an imposing 65% share of the domestic commercial vehicle market
and is trying to modernize this segment. The financial business of Tata motors
was separated into a subsidiary company in sep. 2006, where it recorded a
strong financial performance during the last 5 year period. From year 2003-2007,
the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525
million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at
the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They
are offering one ordinary share valued at Rs. 340 every six shares expecting to
net Rs. 2.90 Crores, the so called “A” share would have different voting and
dividend rights, for every such 6 shares held at a face value of 305 would raise
Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the
short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of
jaguar and Land Rover from their principle “The Ford Motor Company’s”.
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It is also in talks with private equity funds to offload 25% of stake in each of the
following 6 unlisted group units, they are Tata Daewoo commercial vehicle
company, HV transmissions, Tata motors finance, Tata technologies and TELCO
construction equipment, the sales of the stakes would possible conclude by June
2009, helping it to raise further funds for this acquisition, earlier in July it sold
24% stake in an Auto component unit to a group firm and booked a profit of Rs.
110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS. 486
crores to Tata Sons, the holding company of whole Tata group firms. "The
Company aims to monetize a part of its funds through a phased divestment of
certain investments preferably as inter-group sales wherever possible at current
market prices in the coming six to eight months," the money that will be released
from these investments will become a part of the capital to be lifted for repayment
of the bridging loan taken for the Jaguar- Land Rover acquisition. Taken in March
2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March
from a consortium of banks to finance the JLR accusation and its expansion
plans Since the rights issue was announced on 28th may its share value has
fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the
bench mark index gained 3.8% to end at 15, 049.86 points.
The Analysts say that, this is a strategic move taken by Tata Motors because it is
allowing the company to make a lot of profit even when the market is in the
financial pressure allows Tata sons to raise its wager in group companies. If the
company will follow the above mentioned trends then possibly it can raise its
finances in a low liquidity and high interest rate set-up.
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MARUTI SUZUKI
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading
four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation
of Japan holds a majority stake in the company. It was the first company in India
to mass-produce and sell more than a million cars. It is largely credited for having
brought in an automobile revolution to India. It is the market leader in India. On
17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited.
The company's headquarters remain in Gurgaon, near Delhi.
Maruti Suzuki is one of India's leading automobile manufacturers and the
market leader in the car segment, both in terms of volume of vehicles sold and
revenue earned. Until recently, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan. The Indian government held an
initial public offering of 25% of the company in June 2003. As of May 10, 2007,
Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though
the actual production commenced in 1983. Through 2004, Maruti has produced
over 5 Million vehicles. Marutis are sold in India and various several other
countries, depending upon export orders. Cars similar to Marutis (but not
manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South
Asian countries.
The company annually exports more than 30,000 cars and has an
extremely large domestic market in India selling over 500,000 cars annually.
Maruti 800, till 2004, was the India's largest selling compact car ever since it was
launched in 1983. More than a million units of this car have been sold worldwide
so far. Currently, Maruti Alto tops the sales charts.
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Due to the large number of Maruti 800s sold in the Indian market, the term
"Maruti" is commonly used to refer to this compact car model. Till recently the
term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of
Japan, has been the leader of the Indian car market for over two decades.
It’s manufacturing facilities are located at two facilities Gurgaon and
Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed capacity
of 350,000 units per annum. The Manesar facilities, launched in February 2007
comprise a vehicle assembly plant with a capacity of 100,000 units per year and
a Diesel Engine plant with an annual capacity of 100,000 engines and
transmissions.
Manesar and Gurgaon facilities have a combined capability to produce over
700,000 units annually. More than half the cars sold in India are Maruti cars. The
company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2
per cent of Maruti. The rest is owned by the public and financial institutions. It is
listed on the Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were
exported. In all, over six million Maruti cars are on Indian roads since the first car
was rolled out on December 14, 1983.
Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800,
for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and
luxury SUV, Grand Vitara.
Suzuki Motor Corporation, the parent company, is a global leader in mini
and compact cars for three decades. Suzuki’s technical superiority lies in its
ability to pack power and performance into a compact, lightweight engine that is
clean and fuel efficient.
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Maruti is clearly an “employer of choice” for automotive engineers and
young managers from across the country. Nearly 75,000 people are employed
directly by Maruti and its partners.
The company vouches for customer satisfaction. For its sincere efforts it
has been rated (by customers)first in customer satisfaction among all car makers
in India for seven years in a row in annual survey by J D Power Asia Pacific.
Maruti Suzuki was born as a government company, with Suzuki as a
minor partner, to make a people’s car for middle class India. Over the years, the
product range has widened, ownership has changed hands and the customer
has evolved. What remains unchanged, then and now, is Maruti’s mission to
motorize India.
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OBJECTIVE
OF THE
STUDY
17
OBJECTIVE OF THE STUDY
The research project is mainly divided into two parts first one is study about
segmentation of cars and its market and the second is comparision between Tata Motors
and Maruti Suzuki.
The subjects under these two parts are
1. General study about segmentation of cars and its market
a. To study about car market of India.
b. To study about segmentation of car on different basses
c. To study about Tata Motors and Maruti Suzuki.
2. comparision between Tata Motors and Maruti Suzuki.
a. Study of swot matrix of these comapnies.
b. Study of marketing strategy of these company
The study will end with a conclusion giving a reflection of whole project and
recommendations on the basis of data findings.
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SCOPE
OF
THE STUDY
19
SCOPE OF THE STUDY
This project will be very helpful to us to know
The TATA MOTORS
The MARUTI SUZUKI
The marketing strategy of bothe the companies
This project will be an information guide to the company for understanding the marketing
trends of Maruti and TATA.
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SEGMENTATION
OF
CAR
21
Car classification
Car classification is subjective since many vehicles fall into multiple categories or do
not fit well into any. Not all car types are common in all countries and names for the
same vehicle can differ by region. Furthermore, some descriptions may be interpreted
differently in different places. Broadly speaking, there are a set of classifications which
are widely understood in North America, and another set which are somewhat understood
in English-speaking contexts in Europe. Some terms borrowed from non-English
languages may have different meanings when used in their native language.
Classification systems
The following are the most commonly used classifications. Where applicable, the
equivalent Euro NCAP classifications are shown. Car rental companies often use the
ACRISS Car Classification Code. The United States Environmental Protection Agency
(US EPA) has another set of classification rules based on interior passenger and cargo
volumes. A similar set of classes is used by the Canadian EPA. In Australia, the Federal
Chamber of Automotive Industries publishes its own classifications.
Car classification
American
English
British
EnglishSegment Euro NCAP Examples
MicrocarMicrocar,
Bubble car - - BMW Isetta, Smart Fortwo
- City carA-
segmentSupermini
Daewoo Matiz, Renault
Twingo, Toyota Aygo, VW
Lupo
Subcompact
carSupermini
B-
segment
Hyundai Accent, Ford Fiesta,
Opel Corsa, Suzuki Swift
Compact car Small family C- Small family Ford Focus, Toyota Corolla,
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car segment car Opel Astra, VW Golf
Mid-size carLarge family
car D-
segment
Large family
car
Ford Mondeo, Opel Vectra,
Toyota Avensis, VW Passat
Entry-level
luxury car
Compact
executive car
Audi A4, BMW 3 Series,
Mercedes C-Class, Volvo S60
Full-size car
Executive carE-
segment
Executive
car
Ford Crown Victoria, Holden
Commodore, Opel Omega,
Chrysler 300C
Mid-size
luxury car
Audi A6, BMW 5 Series,
Jaguar XF, Mercedes E-Class
Full-size
luxury carLuxury car
F-
segment -
Audi A8, BMW 7 Series,
Jaguar XJ, Mercedes S-Class
Sports car Sports car
S-
segment
-Chevrolet Corvette C6, Porsche
911
Grand tourer Grand tourer -Jaguar XK, Maserati
GranTurismo
Supercar Supercar -Bugatti Veyron, Ferrari Enzo,
Lamborghini Gallardo
Convertible Convertible -Mercedes CLK, Volvo C70,
VW Eos
Roadster RoadsterRoadster
sports
Audi TT, BMW Z4, Porsche
Boxster, Lotus Elise
-Leisure
activity vehicle
M-
segment
Small MPV Peugeot Partner, Škoda
Roomster
- Mini MPVOpel Meriva, Fiat Idea, Ford
Fusion
Compact Compact Mazda5, Opel Zafira, Renault
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minivanMPV, Midi
MPVScénic, VW Touran
Minivan Large MPV Large MPVFord Galaxy, Toyota Previa,
Renault Espace
Mini SUV Mini 4x4
J-
segment
Small Off-
Road 4x4
Daihatsu Terios, Mitsubishi
Pajero iO , Suzuki Jimny
Compact SUV Compact 4x4
BMW X3, Ford Escape, TATA
MOTORS CR-V, Subaru
Forester, Toyota RAV4
- Coupé SUV -Isuzu VehiCROSS, SsangYong
Actyon, BMW X6
Mid-size SUV
Large 4x4Large Off-
Road 4x4
Ford Explorer, BMW X5, Jeep
Grand Cherokee, VW Touareg
Full-size SUV
Cadillac Escalade, Chevrolet
Suburban, Range Rover, Toyota
Land Cruiser
Pickup truck Pick-up - Pick-upFord F-150, Mitsubishi
Triton/L200, Nissan Navara
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RESEARCH
METHODOLOGY
25
RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.
Therefore, research methodology is the way to systematically solve the research
problem. Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods
RESEARCH DESIGN
A Research Design is the framework or plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which sources and by
what methods.
Types of research is: Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are undertaken
in many circumstances when the researches is interested to know the characteristic of
certain group such as age, sex, education level, occupation or income. A descriptive study
may be necessary in cases when a researcher is interested in knowing the proportion of
people in a given population who have in particular manner, making projections of a
certain thing, or determining the relationship between two or more variables. The
objective of such study is to answer the “who, what, when, where and how” of the subject
26
under investigation. There is a general feeling that descriptive studies are factual and very
simple. This is not necessarily true. Descriptive study can be complex, demanding a high
degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary, the researcher give sufficient
thought to framing research.
Questions and deciding the types of data to be collected and the procedure to be used in
this purpose. Descriptive studies can be divided into two broad categories: Cross
Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample
of elements from a given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number of characteristics from sample elements are
collected and analyzed. Cross sectional studies are of two types: Field study and Survey.
Although the distinction between them is not clear- cut , there are some practical
differences, which need different techniques and skills. Field studies are ex-post-factor
scientific inquiries that aim at finding the relations and interrelations among variables in a
real setting. Such studies are done in live situations like communities, schools, factories,
and organizations.
Another type of cross sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be obtained
from a sample of large population .Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research includes survey and fact finding enquiries of
different kinds of the major purpose. Descriptive research is description of the state of
affairs, as it exists at present. The main characteristic of this method is that the researcher
has no control over the variables; he can only report what has happened or what is
happening. The methods of research utilized in descriptive research are survey methods
of all kinds including comparative and co relational methods. The reason for using such
27
needs to be flexile in its approach, but a descriptive study in contrast tends to be rigid and
its approach cannot be changed ever now and then.
TYPE OF DATA COLLECTED
There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary
data is data collected from indirect sources. (Source: Research Methodology, By C. R.
Kothari)
PRIMARY SOURCES
These include the survey or questionnaire method, telephonic interview as well as the
personal interview methods of data collection.
SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company
website, competitor’s websites etc, newspaper articles etc.
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SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. A sample is a representative of the universe
selected for study.
SAMPLE SIZE
The sample size for the survey conducted was 150 respondents. This sample size was
taken on 95% confidence level and 6 significant level.
SAMPLING TECHNIQUE
Definite sampling technique was used in the survey conducted
Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question
that the researcher wishes to ask his respondents which is always guided by the objective
of the survey.
Pie chart:
This is very useful diagram to represent data , which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors, which
are proportional to the values they represent. The total value is represented by the full
create. The diagram bar chart can make comparison among the various components or
between a part and a whole of data.
Bar chart:
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This is another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal widths.
The lengths of the bards are proportional to the value they represent.
Preparation of report:
The report was based on the analysis and presented with the findings and suggestions.
The sample of the questionnaires is attached with the report itself.
30
MARKETING
ANALYSIS
OF
TATA MOTORS
AND
MARUTI SUZUKI
31
SWOT ANALYSIS
32
SWOT OF TATA MOTORS
STRENGTHS
Tata Motors excels when it comes to innovation through intensive
research and development. Their ability to make the least expensive car on the
market, the Nano which will retail for $2,500, is far beyond what any other car
dealership has created. This innovation gives Tata Motors their main competitive
advantage. Tata Motors makes everything from tractor-trailers to the world’s
least expensive car. This product diversity grants them a competitive advantage
over their competitors because they can satisfy more markets and customer
needs. Another strength that Tata Motors possesses is high corporate
responsibility. They donate a portion of their profits from stock increases towards
a specific charity. This highlights Tata Motors overall desire for community
improvement while also emphasizing Tata Motors’ high morals and values which
is something money can not buy.
Tata Motors is also a very eco-friendly company. One of their goals is to
produce an emission friendly car, and in 2000 Tata Motors launched the first
compressed natural air bus. This air bus requires the owner to plug the car into a
standard electric plug for four hours to fill the air tanks. This brought the concept
of an “air-car” to reality and the name for this compressed natural air car is
“OneCAT.” OneCAT has no gas costs or fossil fuel emissions which makes it a
very attractive car for the more mature markets but also the upper classes in
developing countries at this point. It is also a great car to have in highly
populated countries, such as China and India, because pollution with its adverse
33
effects is a very large concern. OneCAT also is more efficient that any other
present Hybrid car, so when inventors think they have the best product out on the
market, they actually do not. There will always be something else to invent or
improve on and Tata Motors is a prime example of that.
Tata Motors is unique in a way in which when it buys a company. Tata
Motors keeps the original management of that company intact. The company
that Tata Motors purchases will look exactly the same in terms of management
and organizational structure as if it was never purchased by Tata Motors.
WEAKNESSES
There are strings attached with every new invention and improvement on
products. These strings are Tata Motors weaknesses and what other groups
perceive as their weaknesses. One weakness that Tata Motors faces is its
inability to meet safety standards. Although they have made the most
inexpensive car out on the market, it has yet to pass all the safety standards
which is a legal factor. Some consumers and pessimists inquire as to how Tata
Motors can make such a cheap car and withstanding a car accident or not just
falling apart after hitting something once. Pessimistic people also want to believe
that car manufactures are already doing everything they can to keep costs low
for the consumer, and if that is the case, then putting the cheapest car out on the
market automatically questions if it is safe to drive.
Tata Motors only have been making passenger cars for the approximately
last ten years. This can be viewed as a weakness from a customer standpoint
since a decade does not seem like a lot to consumers and therefore they will
34
think that Tata Motors is inexperienced car manufacturing. Consumers will
wonder how a car manufacturer can be in the market for 10 years and produce
the cheapest car out on the market. How can Tata Motors manufacture such a
cheap car that meets emission and safety standards being so young? This
causes consumers to be skeptical.
Another weakness that Tata Motors faces is within its domestic market.
Car sales in India are less than 1 million annually. This draws a problem
because Tata Motors may not get the sales that the company hopes for and how
can they sell cars to people who are not buying cars?
The new and innovative OneCAT still has some rough spots that need to
be worked out and one of them is that it has pollutant emissions and greenhouse
gas emissions from the generation of electricity used to compress the air. So
although it is marketed as being emission free, it technically is not and this is
another weakness. Also, OneCAT only goes 62 miles per hour for 56 miles in an
urban cycle. This is not very far and Tata Motors will have to improve on this
weakness as well as the emission weakness in order to draw more comsumers
to this new automobile.
OPPORTUNITIES
Tata Motors has already opened the doors for many new and innovative
ideas, but not only for their company, but their competitors as well which could
turn into a threat. One of the major opportunities that Tata Motor faces is that as
of right now 90 percent of China and India’s adult population do not own cars,
partly because cars are costly and require more expenses after purchased. So
35
the market for a low-priced car is huge which benefits Tata Motors perfectly since
they produce the lowest priced car on the market. This is a huge opportunity for
Tata Motors because if they can get their feet into that market of people that do
not have cars because they cannot afford them, then they will make large profits
down the road. China’s total car sales are estimated at over 8 million dollars
annually and they were the world’s second largest car market in 2006. China’s
government forecasts that demand for cars will top 20 million by 2020. With Tata
Motors in the market with the cheapest car, China’s demand for cars will
probably increase even more significantly which will in turn increase sales for
Tata Motors.
Japan, North America, and Europe automobile sales went up over the
years because of demand for smaller cars increased. This demand for smaller
cars is a great window of opportunity for Tata Motors because not only are their
cars small, but they are cheap and environmentally friendly as well. Once people
in these countries get Tata Motor automobiles then their automobile sales will
continue to rise.
As of March 2008 Tata Motors finalized a deal with Ford Motor Company
to acquire the British businesses, Jaguar Cars and Land Rover. This is a huge
opportunity for Tata Motors since they will acquire the large knowledge base and
technologies for producing and marketing luxury vehicles. This acquisition helps
them dive into the more mature markets in Japan, Europe and the U.S. The
knowledge transfer from these two companies will greatly improve Tata Motors
36
ability to continue to grow and flourish in both developing and developed market
segments.
THREATS
The obvious threat to Tata Motors is intellectual property rights. Tata
invented the cheapest car on the market and every automobile manufacturer
wants to know how Tata did it. Headhunters are soon going to find out this
valuable information and make it available to their own company. This is a huge
threat to Tata Motors because at first they had low competition, but once other
car manufactures find out how they invented such a low cost car, and then these
companies too will jump on board and design their own line of low cost
automobiles. On one hand this can be a threat, but on the other it may not affect
Tata Motors at all because people will still want to purchase their product since
they were the pioneers of all the excitement.
Other companies are starting to compete for some of this market share.
In fact, the Pakistan’s Transmission Motor company has built a basic four-
wheeler for only $2,100. This car is considerably cheap and the Pakistan
Transmission Motor company started exporting them to Sudan, Qatar, and Chile.
This is going to be the beginning of new emerging car manufactures that will be
producing low priced cars.
Another obvious threat is that dealing with gas prices. Gas prices
continue to rise and the Nano requires gas, but those who purchase the Nano
probably do not have a lot of money and so if gas prices keep jumping up then
that market of consumers will not be able to purchase the car. If OneCAT can be
37
made as cheaply as the Nano then that will benefit the consumers even more
because they will get a car that does not run on gas and it will be cheap to
purchase. On the other hand, gas company will not want OneCAT to hit the
market because there will be no profits to be made off the vehicle. Gas
companies have a lot of say over the automobile industry so this could be a big
threat.
Another main concern that Tata Motors faces is that cheap cars in India
will have an adverse effect on pollution and global warming because most of the
population will be able to afford the cars. With more people driving cars there will
be more accidents and deaths, as well as higher fossil fuels leaked into the
environment causing even more pollution then there already is.
Tata Motors is family owned and this can potentially cause problems down
the road because some family members can become greedy and money hungry.
Once they really start to rapidly grow then there may be family feuds and people
not pulling their part.
Another threat is the whole point of their cars being made with cheap
plastic. Are these cars durable? Will they hold together in a head-on collision?
As off August 2007 there was no further information on this topic though.
38
SWOT OF MARUTI SUZUKI
Strengths
Bigger name in the market
Trust of people
Established distribution and after sales service
Understanding of Indian market
Ability to Design product with differentiate features
Brand image
Experience in knowhow in technology
Low maintenance cost of vehicle
Weaknesses
Lack of experience in foreign market
Comparatively new in diesel car
People Resistant to upper segment model
Heavy import tariff on fully built imported model
Exports are not good
Global image is not big
Opportunities
Increased purchasing power of Indian middle class category
Government subsidy
Tax benefit
Prospective buyers in two wheeler segment
Great opportunities to grow with Swift and SX4 allover
Introduction of more diesel models. The diesel car market is growing.
Opportunities to grow by entering into bigger car markets
39
Already a market leader o great opportunity to be the king of the market in
every stage of industry.
Threats
Foreign companies entering into market; so a bigger threat from MNC’s.
To the market share as many bigger names are coming
Competition from second hand cars and Tata Nano
Threat from Chinese Manufactures
There is hardly any diesel model
Rs 1 lakh to 1.5 lakh car
40
Application of porter’s five force model:
Porter’s five force analysis is a framework for the industry analysis and business
strategy developed by Michael e .porter of Harvard business school in
1979.michael porter provided a framework that model an industry as being
influenced by five force. The strategic business manager seeking to develop an
edge over rival firms can use this model to better understand the industry context
in which the firm operates.
Porter has identified five competitive forces that shape every industry and every
market. these force determine the intensity of competition and hence the
profitability and attractiveness of an industry .the objective of the corporate
strategy should to modify these competitive force in a way that improve the
position of the organization .porter’s model support analysis of the driving forces
of the industry. Based on the information from the competitor’s survey and
41
analyzing the market this model can help to determine how to influence and to
exploit particular characteristics of their industry
bargaining power of suppliersasome
A Producing industry requires raw materials-labor, components, and other
supplies. This requirement leads buyer supplier relationship between the industry
and the firms that provide it the raw material used to create products suppliers, if
powerful, can exert an influence on the industry, such as selling raw material at a
high price to capture some of the industry’s profile. Other automobile industries in
the proximity of the suppliers may lead t shift of the business of the competitors.
Solution
Part standardization to avoid complexities in manufacture for the suppiers strong
supplier relationships to ensure a smooth production more than one supplier for
particular commodities
Bargaining power of customer
The power of buyers is the impact that customers have on producing industry
similar to the bargaining power of sppliers, bargaining power of the customers
determine how much pressure on margins and volumes
Since the industry is filled with so many option that are price competitive as wellit
is ultimately the customer who decides the fate of the company profits.
Solution
Increasing customer relationship management and creating customer
loyalty may help.
Introducing various schemes and promotional schemes i
Innovation and understanding the customer’s needs
Significant buyer switching cost
42
Attractive advertising and effective brand management
Threat of new entrants
The higher the competition in the industry, the easier it is for other companies to
enter the industry. In such a situation the new entrants can change the major
determinant of the market environment at any time
Today we can see that the automobile market is on a high with Tata coming up
with nano priced at rs 1 lakh and wheeler industry giants the bajaj coming into
the four wheeler industry. Nissan also plans to enter India in the a segment
category which will toughen the competition for other industries.
Solution
Innovation to capture untapped markets
Use Promotion and branding exercises
Use focused marketing efforts.
Threat of substitute
A threat from substitute exists if there is an alternative product with lower price or
having better performance. This could potentially attract significant proportion of
the market and hence reduce potential sales volume for existing players.
Similarly to the threat to new entrants, the threat of substitute is determines by
force like low brand loyalty of the customers
With a good transportation system developing in the country and increasing fuel
prices, people are switching to chapter mode of transportation. For example the
start of metro railways is a threat to potential profits of the companies. With
various companies coming up with cheaper substitute the company needs to be
ready for challenges.
43
Solutions:
Conduct regular customer survey to under stand the changing needs of
the market.
Making cost effective products to meet the demands of the industry
Effective market segmentation to ensure maximum profits.
Promote the product (projects) more and increase visibility.
Competitive rivalry between existing player
For most industries, this is the major determinant of the competitiveness of the
industry. sometimes rivals compete aggressively and sometimes rival compete in
non –price dimensions such as innovation, marketing etc.
The closest rivals of TATA MOTORS city where Toyota corolla altis, fiat linea in
terms of style, ford. fiesta in terms of value for money and Hyundai verma may
pose a serious competition to the TATA MOTORS city
A part of fiat linea having low power of 90ps as compared to 118ps of TATA
MOTORS city .it can become a tough challenger for the TATA MOTORS city
because of its styling ,features, a strong network with help of the Tata’s and
competitive price. For TATA MOTORS I am sure it will enjoy this challenger and
be the winner at the end.
Solution
Create product differentiation: improving features, implementing
innovation in the manufacturing process and in the product it self.
Changing price:raising or lowering price to gain a temporary advantage.
Creatively usinggg channel of distribution
44
45
Threat from the new players: IncreasingMost of the major global players are present in the Indian market; few more are expected to enter.Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital.Access to distribution network is important. Lower tariffs in post WTO may expose Indian companies to threat of imports.
Rivalry within the industry: HighThere is keen competition in select segments. (compact and mid size segments).New multinational players may enter the market.
Market strength of suppliers: LowA large number of automotive components suppliers.Automotive players are rationalizing their vendor base to achieve consistency in quality.
Market strength of consumers: IncreasingIncreased awareness among consumers has increased expectations. Thus the ability to innovate is critical.Product differentiation via new features, improved performance and after-sales support is critical.Increased competitive intensity has limited the pricing power of manufacturers.
Threat from substitutes: Low to mediumWith consumer preferences changing, inter product substitution is taking place (Mini cars are being replaced by compact or mid sized cars).
The critical issue facing the Indian passenger car industry is the attainment of
break-even volumes. This is related to the quantum of investments made by the
players in capacity creation and the selling price of the car. The amount of
investment in capacities by passenger car manufacturers in turn depends on the
production
strategies of the car manufacturers. Setting up integrated manufacturing facilities
may require higher capital investments than establishing assembly facilities for
semi knocked down kits or complete knocked down kits. In recent years, even
though the ratio of sales to capacity (an important indicator of the ability to reach
46
break-even volumes) of the domestic car manufacturers have improved, it is still
low for quite a few car manufacturers in India. India is also likely to increasingly
serve as the sourcing base for global automotive companies, and automotive
exports are likely to gain increasing importance over the medium term. However,
the growth rates are likely to vary across segments. Although the Mini segment is
expected to sustain volumes, it is likely to continue losing market share; growth in
the medium term is expected to be led largely by the Compact and Mid-range
segments. Additionally, in terms of engine capacity, the Indian passenger car
market is moving towards cars of higher capacity. This apart, competition is likely
to intensify in the SUV segment in India following the launch of new models at
competitive prices.
Maruti Suzuki is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue
earned. Until recently, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan. The Indian government held an
initial public offering of 25% of the company in June 2003. As of May 10, 2007,
Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei
car which at the time was the only modern car available in India, its' only
competitors- the Hindustan Ambassador and Premier Padmini were both around
25 years out of date at that point. Through 2004, Maruti has produced over 5
Million vehicles. Marutis are sold in India and various several other countries,
depending upon export orders. Models similar to Marutis (but not manufactured
by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other
South Asian countries.
The company annually exports more than 50,000 cars and has an extremely
large domestic market in India selling over 730,000 cars annually. Maruti 800, till
47
2004, was the India's largest selling compact car ever since it was launched in
1983. More than a million units of this car have been sold worldwide so far.
Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling
in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term
"Maruti" is commonly used to refer to this compact car model. Till recently the
term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan,
has been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar
south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000
units per annum. The Manesar facilities, launched in February 2007 comprise a
vehicle assembly plant with a capacity of 100,000 units per year and a Diesel
Engine plant with an annual capacity of 100,000 engines and transmissions.
Manesar and Gurgaon facilities have a combined capability to produce over
700,000 units annually.
More than half the cars sold in India are Maruti cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of
Maruti. The rest is owned by the public and financial institutions. It is listed on the
Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were
exported. In all, over six million Maruti cars are on Indian roads since the first car
was rolled out on December 14, 1983.
Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa,
Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand
Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand
48
Vitara is imported from Japan as a completely built unit (CBU), remaining all
models are manufactured in Maruti Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzuki’s technical superiority lies in its ability to
pack power and performance into a compact, lightweight engine that is clean and
fuel efficient.
Maruti is clearly an “employer of choice” for automotive engineers and young
managers from across the country. Nearly 75,000 people are employed directly
by Maruti and its partners.
The company vouches for customer satisfaction. For its sincere efforts it has
been rated (by customers)first in customer satisfaction among all car makers in
India for nine years in a row in annual survey by J D Power Asia Pacific.
Maruti Suzuki was born as a government company, with Suzuki as a minor
partner to make a people's car for middle class India. Over the years, the product
range has widened, ownership has changed hands and the customer has
evolved. What remains unchanged, then and now, is Maruti’s mission to motorise
India.
Pressure started mounting on Indira and Sanjay Gandhi to share the details of
the progress on the Maruti Project. Since country's resources were made
available by mother to her son's pet project. A delegation of Indian technocrats
was assigned to hunt a collaborator for the project. Initial rounds of discussion
were held with the giants of the automobile industry in Japan including Toyota,
Nissan and Honda. Suzuki Motor Corporation was at that time a small player in
the four wheeler automobile sector and had major share in the two wheeler
segment. Suzuki's bid was considered negligible.
In the initial rounds of discussion the giants had their bosses present and in the
later rounds related to the technical discussions executives of these automobile
49
giants were present. Osamu Suzuki, Chairman and CEO of the company
ensured that he was present in all the rounds of discussion. Osamu in an article
writes that it subtly massaged their (Indian delegation) egos and also convinced
them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to
ensure the government about its sincerity on the project. Suzuki in return
received a lot of help from the government in such matters as import clearances
for manufacturing equipment (against the wishes of the Indian machine tool
industry then and its own socialistic ideology), land purchase at government
prices for setting up the factory Gurgaon and reduced or removal of excise tariffs.
This helped Suzuki conscientiously nurse Maruti through its infancy to become
one of its flagship ventu
50
DATA ANALYSIS
AND
INTERPRETATION
51
DATA ANALYSIS AND INTERPRETATION
The 3 most important feature people looking in a car
43
119
27
9
18
12
51
112
21
15
14
9
0 50 100 150
safety
look
interior
features
maintanance
music system
comfort
milage
price
brand
power
capacity
Indian car customers are not aware about the safety and power of car they are looking for
look of the car and fuel efficiency.
52
safety 43look 119interior 27features 9maintenance 18music system 12comfort 51mileage 112price 21brand 15power 14capacity 9
53
Currently the people are driving following cars
a. based on model
21
12
6
12
3
16
3
3
18
7
15
3
3
6
6
3
10
3
0 5 10 15 20 25
swift
honda city
sx4
zen
tata safari
wagon r
accent
tata indigo
santro
i-10
ms 800
opel
icon
a-star
civic
uva
alto
leana
54
swift 21TATA MOTORS city 12sx4 6zen 12tata safari 3wagon r 16accent 3tata indigo 3santro 18i-10 7ms 800 15opel 3icon 3a-star 6civic 6uva 3alto 10leana 3
55
b. Based on the company
86
18
6
28
12
maruti suzuki honda siel tata hyundai others
The figure shows that Maruti Suzuki is the master of today’s car market followed
by Hyundai and TATA MOTORS Siel.
maruti suzuki 86TATA MOTORS siel 18tata 6hyundai 28others 12
56
Satisfaction level with current car
52
67
22
6 3
0
10
20
30
40
50
60
70
level 5 level 4 level 3 level 2 level 1
Generally the customers are satisfied with their own current car
level 5 52level 4 67level 3 22level 2 6level 1 3
57
Top 4 mid segment brands in the customers view
144
100
132
116
7236
MARUTI HONDA HYUNDAI TATA FORD OTHERS
Maruti is most popular brand in the India flowed by Hyundai, Tata , TATA MOTORS
etc.
MARUTI 144TATA MOTORS 100HYUNDAI 132TATA 116FORD 72OTHERS 36
58
Price range of the car considered by customer
15
6927
27
12
2-4 lacks 4-6 lacks 7-10 lacks
10-15 lacks 15 and above
Maximum customer in India are looking for the car priced between 4 to 6 lacks.
2-4 lacks 154-6 lacks 697-10 lacks 2710-15 lacks 2715 and above 12
59
Customers are looking for following car as their new car
27
12
3
6
12
6
24
3
3
3
18
6
3
3
3
3
15
0 5 10 15 20 25 30
not any
verna
endavour
land rover
logan
accord
city
bmw
audi
lancer
swift
i-20
liena
altis
jaguar
inova
civic
This shows that most of the people are looking for city, civic and swift as there new car.
not any 27
60
verna 12endavour 3land rover 6logan 12accord 6city 24bmw 3audi 3lancer 3swift 18i-20 6liena 3altis 3jaguar 3inova 3civic 15
61
Source of information for purchasing a new car
39
18
1636
30
11
internet television auto magzine
dealer friend any other
Customers are influenced by internet, dealer and friends for information about car.
internet 39television 18auto magazine 16dealer 36friend 30any other 11
62
Influencer in the family for buying a new car
48
2127
27
12
15
self supose cildren parent friends others
Customers are influenced by family members for purchasing a new car
self 48suppose 21children 27parent 27friends 12others 15
63
Fuel preference for a car
67
49
34
petrol disel cng
Petrol is most preferred fuel for a car.
petrol 67diesel 49cng 34
64
News paper read by customers
72
34
12 9 11 12
0
10
20
30
40
50
60
70
80
times o
f india
hindus
tan tim
es
busin
ess s
tanda
rd
econ
omy tim
es
amar
ujala
dainik
jagra
n
Times of India and Hindustan times are most read news paper
times of india 72hindustan times 34business standard 12economy times 9amar ujala 11dainik jagran 12other 0
65
Top 3 TV channels watched by customers
0
2
4
6
8
10
12
14
16
18
ndtv
colors
sab
discovery
espn
star sports
ten sports
sony
zee
9x cnbc
Generally peoples are viewing the sports and news channel
ndtv 16colors 7sab 16discovery 12espn 18star sports 14ten sports 12sony 18zee 169x 12cnbc 9
66
Annual household income of customer
31
69
24
1610
1-2.5 lacs 2.5-5 lacs 5-7.5 lacs 7.5-10 lacs 10 lacs and above
In India the average annual income of the people are 2.5 to 5 lacks per annum.
1-2.5 lacs 312.5-5 lacs 695-7.5 lacs 247.5-10 lacs 1610 lacs and above 10
67
Importance of feature in a car at the time of buying
The answers are on the scale of 5 level of importance the results are the average of the
total.
00.5
11.5
22.5
33.5
44.5
5
value for money
brand
fuel economy
space and comfort
safety
engine power
service centers
interior
value for money 5brand 4fuel economy 4.5space and comfort 4safety 4.5engine power 4.5service centers 4interior 3.5
68
FINDINGS
AND
CONCLUSION
69
FINDINGS AND CONCLUSION
1. Indian car customers are not aware about the safety and power of car they are
looking for look of the car and fuel efficiency.
2. The figure shows that Maruti Suzuki is the master of today’s car market followed
by Hyundai and TATA MOTORS Siel.
3. Generally the customers are satisfied with their own current car
4. Maruti is most popular brand in the India flowed by Hyundai, Tata , TATA
MOTORS etc.
5. Maximum customer in India are looking for the car priced between 4 to 6 lacks.
6. This shows that most of the people are looking for city, civic and swift as there
new car.
7. Customers are influenced by internet, dealer and friends for information about
car.
8. Customers are influenced by family members for purchasing a new car
9. Petrol is most preferred fuel for a car.
10. Times of India and Hindustan times are most read news paper
11. Generally peoples are viewing the sports and news channel
12. In India the average annual income of the people are 2.5 to 5 lacks per annum.
70
BIBLIOGRAPHY
Books
1. Marketing management: analysis, planning, implementation, and control by Philip
Kotler - Business & Economics - 1988
2. Marketing Management by Philip Kotler, Kevin Keller - Business & Economics -
2008
3. Research methodology: a step-by-step guide for beginners by Ranjit Kumar -
Social Science - 2005
4. Research methodology by Douglas K. Detterman - Psychology - 1985
Web sources
1. www.managementparadise.com
2. www.wikipedia.org
3. www.google.co
71
Very much satisfies Not At all satisfies
5 4 3 2 1
ANNEXURE
Questionnaire
Dear/Respected Respondent,
1. The 3 most important features you look for in a car?
A. ................................................................
B. ................................................................
C. ………………………………………………………………
2. Which car do you use now? ..............................................
3. Your satisfaction level with your car.
4. Name Top 4 mid segment Brands.(in your view)
………………………………………………………………………………………
…………………………………………
5. What is the price range you would consider for a new car?
From [ ] to [ ] lacs
6. Is there a specific vehicle you are currently interested in?
.........................................................................................
7. Why do you like this vehicle?
.........................................................................................
8. For Buying a car you are more likely to get information from: Name one only
72
Internet [ ] Television [ ] Auto magazine [ ] Dealers [ ] Friends [ ]
Any Other [ ]
9. Who influence most in the family for buying car?
You [ ] Wife/Husband [ ] Children [ ] Parents [ ] Friends [ ] Any other
[ ]
10. You would prefer petrol/diesel/CNG
car? .......................................................................
11. Which Newspaper do you read regularly?
a) The Times of India [ ] b) The Hindustan Times [ ] c) Business Standard [ ]
d) The Economic Times [ ] e) Amar Ujala [ ] f) Dainik Jagran [ ] g) Any other [ ]
12. Which 3 TV Channel do you watch the most:
a) …………………………………………………………………..
b) ……………………………………………………………………
c) …………………………………………………………………….
13. What is the approximate annual income of your family (INR.)
a) 1lacs to 2.5 lacs [ ] b) 2.5lacs to 5 lacs [ ] c) 5lacsto 7.5lacs [ ] d) 7.5lacs to
10lacs [ ] e) 10lacs and above [ ]
14. ‘How important are the following features you consider for Buying a new Car’
On a Scale of 1 to 5 where,
(5= Must have; 4= High Priority; 3= Worth Considering; 2= Don’t Care; 1= Unwanted)
Price/Value for money …………………………………..
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Prestige/Status/Brand …………………………………..
Fuel Economy …………………………………..
Passenger Space and Comfort…………………………………..
Safety …………………………………..
Engine Power …………………………………..
Service Centres …………………………………..
Luxurious interior …………………………………..
Contact Details:
Name: - …………………………………………………….. Gender:
………………….
Age: - ……………………………………. Contact no:-…………………………..
E mail address: - …………………………………………………………………………
Current Occupation: - Student [ ] Service [ ] Business [ ] Any
other……………………….
Education: High School [ ] Intermediate [ ] Graduate [ ] Post Graduate [ ]
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