PROJECT REPORT

ON
Consumer buying preference towards Mahindra
Scorpio.

SUBMITTED TO SUBMITTED BY

Mrs. Rekha Goel Harshita

BBA Deptt. BBA 6th Sem.

Roll No. : 3804

{AFFILIATED TO M.D.UNIVERSITY}
 ACKNOWLEDGEMENT

This research in itself is an acknowledge to the inspiration, drive, technical

assistance contributed to it by many individuals. This research work would have
never been completed without the guidance and assistance that I received from
time to time during the whole research process.

It is my great pleasure to place a record of sincere thanks and gratitude to

Mr. Parveen Arora, Lochab Motars, Rohtak

I express my sincere gratitude and in debtness to Mr. Satish Kumar

(Department of Commerce) for giving me an opportunity to enhance my skill in
the field of my project.

Poonam
 COMPANY PROFILE

Vision Statement: To create a fully collaborative environment in which suppliers can deliver
exactly what the company needs, when it needs it, and at a competitive cost

Mission: To create India's largest automobile and automobile-related products distribution

network by providing dealers and customers with the largest choice of unique world-class
products and services.

Mahindra & Mahindra Limited, Automotive Sector is a major player in the automotive
industry in India. It is a part of Rs. 8000 Crores Mahindra group which manufactures Multi
Utility Vehicles ( MUVs- further classified into soft tops, hard tops and pick-ups), Light
Commercial Vehicles (LCVs) ,three wheelers two wheelers.

M&M's association with the automobile business dates back to 1945. The Company was
incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian
market, initially by importing and assembling Willys Jeep kits. The manufacture of utility
vehicles commenced in 1954 in collaboration with Willys Overland Corporation and its
successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the Daimler
Chrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV) in
1965. The Company has recently entered the three-wheeler market.

Over the years, the Mahindra brand of vehicles have come to represent high quality,
ruggedness, durability, reliability, easy maintenance and operational economy. These are the
qualities that have endeared the vehicle to individuals as well as institutions like the Indian
armed forces. M&M is the leader in the MUV business in the country since inception.

M&M has comprehensive manufacturing facilities with high level of vertical integration.
M&M's automotive division has four manufacturing plants, three in the state of Maharashtra and
one in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-
utility vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles and
three-wheelers are manufactured at the Company's plant in Zaheerabad in Andhra Pradesh.

Our Mumbai and Nasik plants with the R&D facility at Nasik are ISO/TS 16949
certified. The Mumbai plant has also been recommended for the TPM excellence award. Our
engine plant at Igatpuri has QS 9000 certification. Our LCV & three-wheeler plant at Zaheerabad
have ISO 9001:1994 certification. Both of these plants are also working towards TS 16949
certification. Our plants in Mumbai and Igatpuri are also ISO 14001 certified.

M&M has a strong Research & Development set-up, with over 300 engineers in the
automotive division. The Company's technical prowess is proven by negligible import content in
our vehicle and by the design and development of a totally, from ground upward, new
contemporary SUV - Scorpio.

The division's marketing efforts are supported by a network of more than 275 dealers
across the country, which are managed by 20 sales offices. Additionally, the division has a
national network of authorized service stations and stockiest to meet customer needs for
servicing and spare parts.

Having conquered a substantial portion of India's semi-urban and rural markets, the
division has in recent years secured significant success in urban regions following the
introduction of premium MUVs like Bolero, and Scorpio. Scorpio is M&M's first indigenously
developed Sports Utility Vehicle - an off road vehicle with car like comforts. The Scorpio was
launched in June 2002 and has been universally acclaimed. It was declared to be the "Car of the
Year" by CNBC AutoCAD, BBC Wheels and Business Standard Motoring.
 SWOT ANALYSIS:

STRENGTHS

Highly innovative.(eg: first Indian company to introduce hybrid engine)

High production capacity of vehicles.
Possess all categories of vehicles from two wheeler to sixteen wheeler.
Well versed with the conditions of road in India.
Possess high brand name and high brand attachments.

WEAKNESS
Highly dependent on rural areas.
Possess less technological power in comparison to foreign players.

OPPURTUNITIES
Stepping into new business due to possession of huge cash eg: communications, medical,
airlines etc.
Launching vehicles in untapped markets of different countries.

THREATS
Incoming of foreign players.
Increasing cost of fuel.
Increasing competition.
 INTRODUCTION TO MAHINDRA SCORPIO

The Mahindra Scorpio is an SUV manufactured by Mahindra & Mahindra Limited, the flagship
company of the Indian Mahindra Group. It was the first SUV from the company built for the
global market in 2002. The Scorpio has been successfully accepted in international markets
across the globe, and will shortly be launched in the United States.

The Scorpio was conceptualized and designed by the in-house integrated design and
manufacturing team of M&M. The car has been the recipient of three prestigious awards: the
"Car of the Year" award from Business Standard Motoring as well as the "Best SUV of the Year"
and the "Best Car of the Year" awards, both from BBC World Wheels.

DIFFERENT GENERATIONS
First Generation
Soon after the success of the Scorpio, Mahindra launched an upgraded Scorpio with plush
seats and rear centre arm rest, dual tone exterior color and various minor changes.

Second Generation

In April 2006, the company launched an upgraded Scorpio dubbing it the 'All-New'
Scorpio.
In June 2007, Mahindra launched a pick-up version in India known as the Scorpio
Getaway.
Third Generation

In April 2008, Mahindra revealed a concept of a diesel-electric hybrid version of their

Scorpio SUV, with a 6 speed automatic transmission gears.
In 2009, they came up with more safety measures such as ABS Brakes and Airbags.

Performance of the car

1. Scorpio to capture 22 per cent of the premium hard top market in F03 (9 months)
2. Sell of 12000 Scorpios in F03 (9 months)
3. Mahindra unaided brand recall score to increase by 22 pts (defined in terms of Brand
Track study scores)
4. Scorpio brand recall score to achieve 50 points (in W4)
Within three years of launch

* Scorpio to capture 45 per cent of the premium hard top market

* Scorpio to sell 24,000 units in F04
* Mahindra to emerge as a true urban player
Market Positioning
It was positioned as such that it should communicate that the vehicle is better than rest of
all the UV cars and is a better buy in terms of money.

Different Models of Mahindra Scorpio

Mahindra Scorpio LX : This is the base model with many advanced features such as
mHawk engine, digital immobilizer, collapsible steering column, crash protection
crumple zone, illuminated spoiler, sporty bonnet scoop and tubeless tyres. In November
2011, a 4WD version was introduced in the LX trim.
Mahindra Scorpio Getaway : This variant is powered by the 2.6L, 2609cc, diesel engine.
It satisfies only BS III emission norms, so it is not available in metro cities.

Mahindra Scorpio SLE : This is an upgraded version with additional features like ABS,
air dams and mud flaps, front fog lamps, voice assist system, electrically operated
ORVMs and middle row sliding seats.
 Mahindra Scorpio VLX : This is an upgraded version with additional features like sporty
decals, alloy wheels, anti pinch smart windows, cruise control and audio controls on the
steering wheel, dual airbags, micro hybrid technology, 2 Din audio system, intellipark,
tyre tronics, and blue vision bulbs.

Mahindra Scorpio VLX AT : This is the premium model with an additional feature of an
automatic transmission gearbox.

Mahindra Scorpio VLX AT 4WD: this is the premium model with dual airbags, ABS and
4WD.

OBJECTIVES OF THE STUDY

The study has been under taken to analyze the customer satisfaction towards all variant of Mahindra
Motors in Deoghar (Jharkhand) with a special reference to the M&M motors, the other objectives are:

To gather information about customer satisfaction toward Mahindra and Mahindra Motors in the
geographic region of Deoghar (Jharkahnd).
 To know the customer perception about features, low maintenance cost and looks of Mahindra
and Mahindra Motors.

To know the customer satisfaction about the safety and comfortable Vechiles of Mahindra and
Mahindra .

To provide suggestions, in improving the customer satisfaction and the company sales and
profitability

To know the customer satisfaction towards the after sales service offers by M&M.

Limitation of the survey

Though best effort have been made to make the study fair transparent and error free yet there might be
some inevitable and limitations. Although outright measures area undertaken to make the report most
accurate some inadvertent errors might have crept in and suggestions to improve or eliminate the same
are most welcome.

The limitations of the survey are narrated below:

 The project is valid for the predefined area of work Deoghar (Jharkhand)

There may be some biased response from the respondents.

Some respondents did not provide the full data.

Due to different RTO norms of Deoghar as well as Jharkahnd the response of people might differ from
those of other cities and state if any

ANALYSIS
OBSERVATIONS AND FINDINGS

TABLE NO 3. 1: ANALYSIS ON THE BASIS OF AGE

Age Groups No. of Percentages

Respondents
Less than 25 5 10

25-35 8 16

35-45 18 36

45-55 14 28

55-65 5 10

TOTAL 50 100
Table No. 3.1 shows the Analysis on the basis of age, 36 per cent of the total respondents are in
the age group of 35-45 years, followed by 28 percent in the age group of 4 5-55 years of age. Ten
cent of the total are below 25 years. This reveals that maximum respondents are in the age group
of 25-45 years.

TABLE 3. 2 : GENDER OF THE RESPONDENTS

GENDER NO OF THE PERCENTAGE

RESPONDENTS

MALE 40 80

FEMALE 10 20

TOTAL 50 100

Table No.3.2 shows the gender of the respondents majority of the respondents do male with a
sample size of 50 constitute 80% and remaining are female respondents
TABLE NO. 3.3: ANALYSIS ON THE BASIS OF EDUCATION QUALIFICATION

QUALIFICATION NO OF THE PERCENTAGE

RESPONDENTS

METRIC 4 8

HSC 12 24

GRADUATE 16 32

POST GRADUATE 5 10

PROFESSIONAL DEGREE 13 26

T0TAL 50 100

Table no.3.3 shows the analysis of respondents on the basis of education qualification. 32 percent
are graduate while 26 percent have professional degree.
TABLE NO.3. 4 : OCCUPATION OF RESPONDANTS

OCCUPATION NO OF RESPONDANTS PERCENTAGES

Professional 12 24

Govt. employee 6 12

Pvt. employee 10 20

Own Business 22 44

TOTAL 50 100

Table No.3.4 shows the analysis of occupation of respondents. A maximum forty four per cent
of the total respondents have their own business, 12 percent are Government employee, and 20
percent of the respondents are private employees while 24 per cent of the respondents are
professionals.

FINDINGS
 It is found that sixty percent people uses Mahindra Scorpio in SUV segment. Among all
respondents only forty percent people are willing to change the brand. People wants the
interiors of Scorpio to be improved.

It is found that brand is the most important factor while price is the second most
important factor while deciding in buying an SUV.

It is found that seventy percent of the respondents are satisfied with the car which they
are using.
Respondents between the age group 25-45 are the most consumers of SUV and there is a
significant association between age and brand preference.
It is found that personal factors like age , gender, educational qualification, occupation have
significant impact on consumer buying behavior towards Scorpio .
It is found that people are factors of brand preference like price ,mileage ,brand status ,
mantainence cost , after sales service plays an important role in selecting the brand.
 SUGGESTIONS

1. Indians are conscious about the price, fuel efficiency and mantainence cost . Whoever is
selling low-priced, fuel-efficient SUV with latest technology will succeed and they are
likely to see large volumes of sales. So Mahindra should try to improve Scorpio with
advanced technology so that its mantainence cost is low and fuel efficiency is high.

2. Relationship marketing strategy must be adopted to the customers owing Scorpio. The
marketers must try to build a relationship with the customer so that they feel special and
in turn becomes loyal to the brand. Brand loyalty programmes like owners group
magazine should be published containing the names of the new owners by welcoming
them to join the group. In this way they can create a strong relationship with the
customers.

3. Customers wants comforts and luxury hence Scorpio must improve its interiors with rear
end cameras, GPS navigation etc.
 CONCLUSION

This report tries to present an idea about consumer buying preference of Mahindra Scorpio by
examining age, qualification, gender, profession. In trying to create strong brand loyalty,
company should be interested in assessing the degree of customer brand preference. The brand
strength depends on the perception of customers. Satisfied and loyal customers indicate positive
perceptions of brand. In time when competition is getting powerful, it is imperative for the firm
to seriously evaluate factors that are not only important in creating strong brand equity but also
assist them in achieving customer satisfaction and loyalty. The results of the study shows that
brand preference and brand loyalty play an important role in creating consumer buying behavior.

The Automobile industry has strongly striven towards globalization, which increasingly affects
the policy at local, regional and global levels. The present study made a systematic effort on
studying consumer brand preference towards Scorpio by analyzing the factors that influence
brand choice of the customers and revealed the impact of brand preference dimensions on
customer satisfaction. There is cut throat competitions in the market on price front and so they
have to find out better quality and low cost product.

The characteristic of this specific industry is that the marketing defines, creates and forms the
goods and their target groups, possibly more than any other industry in the world. Ability to meet
changing technology, customers needs and styling and shortening product life cycle are the
challenges that passenger car companies will have to face.

All said and done, this industry will continue to grow with time.