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A Study of Analysis of Market Strategies in Automobile Companies in India

A Summer Internship Project Report on


A STUDY
on
ANALYSYS AND PROJECT OF MARKET STRATAGIES
OF
AUTOMOBILE COMPANIES IN INDIA

Submitted in partial fulfillment of the requirements for the degree of


Master In Business Administration (Marketing).

Presented By
SWATI NILESHKUMAR DEOKAR

Under the guidance of


Prof. P.G. Jadhav

A Study Conducted for


THE KOTHARI WHEELS.

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A Study of Analysis of Market Strategies in Automobile Companies in India

At
Mahatma Phule Institute Of Management & Computer Studies,
Hadapsar, Pune.

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A Study of Analysis of Market Strategies in Automobile Companies in India

This is to certify that the project report titled A Study on Analysis and Project of
Market Strategies of Automobile Companies in India, Pune is completed by Mrs.
Swati Nileshkumar Deokar a student of this institute, for partial fulfilment of the Masters
In Business Administration (MBA) Marketing Management affiliated to Savitribai Phule
Pune University during year 2017-18.

Head Of The Department Internal Guide

Internal Examiner External Examiner

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A Study of Analysis of Market Strategies in Automobile Companies in India

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mrs. Deokar Swati Nileshkumar, student of PDEAs Mahatma
Phule Institute Of Management & Computer Studies, Manjari Road, Near Anna Saheb
Magar College Campus Hadapsar, Pune has completed her summer internship on A
Study on Analysis and Project of Market Strategies of Automobile Companies in
India, from May 15th, 2017 to July 21st, 2017
She has completed her internship training for sales and marketing team of cars buying of
Maruti Suzuki.
Her attendance found to be excellent and punctual.
We wish her to all the best for her future endeavor.

Regards,
Sandeep Patil
Manager, The Kothari Wheels.

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A Study of Analysis of Market Strategies in Automobile Companies in India

ACKNOWLEDGEMENT

I express my deepest sense of gratitude the GOD almighty for the abundant
blessing without which the study would have never been light of the day.

I hereby acknowledge my sincere gratitude to the Savitribai Phule Pune University


for giving me an opportunity to undergo MBA Degree Course and to undertake this project
work successfully.

I express my profound sense of gratitude and sincere thanks to management of


The Kothari Wheels for having offered me training in their organization.
I extend my special thanks to my guide Mr. Sandeep Patil who gave an
opportunity to select and work on this topic. It was hes valuable guidance and inspiration,
which helps me to complete my project successfully.

I wish to express my deep sense of thanks to our Director


Prof. A. S. Sarkar, PDEAs Mahatma Phule Institute Of Management & Computer
Studies.

I owe my reverential gratitude to my faculty guide Prof. P.G. Jadhav, for her
valuable guidance and suggestions rendered at each stage of the project.

Last, but not Least, I would like to acknowledge the wholehearted support of my
parents, faculties, employees and friends who helped me at various stages in completing
this work successfully.

Swati Nileshkumar Deokar


MBA
MPIM, Pune.

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A Study of Analysis of Market Strategies in Automobile Companies in India

EXECUTIVE SUMMARY

The project report was carried on to know the Marketing strategies followed by
Kothari Wheels and its competitors in customer point of view in selling the cars, provided
by the company will help to enhance the companys sales. To know the satisfaction level
of existing consumers this will help to maintain loyalty of the costumer. The project report
entitled A Study on Analysis and Project of Market Strategies of Automobile
Companies in India provided by Kothari Wheels(Maruti Suzuki), Pune. Is undertaken in
partial fulfillment of requirement of MBA 3rd semester in PDEAs Mahatma Phule Institute
Of Management & Computer Studies, Pune.

Title of the project:

A Study on Analysis and Project of Market Strategies of Automobile Companies in India

Objectives the study:

1) To study the major differences in promotional activity undertaken by Kothari


Wheels and competitors.

2) Study of sales practices followed by Kothari Wheels and competitors.

3) To study the major Service level differences between Kothari Wheels and its
competitors.

4) To know the customer retention strategies followed by Kothari Wheels and its
competitors.

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A Study of Analysis of Market Strategies in Automobile Companies in India

Statement of the problem


In Indian car industry, small car segments have played a very crucial and
significant role due to its economy, efficiency and effectiveness. Due to invasion of foreign
cars into Indian markets, the pace of competition has hiked. This has brought into market,
number of Brands and their variants competing to with each other. All these factors have
resulted in flux in the minds of the customers as to which brand to go for. In other words,
Brand-switching is gaining the momentum. So to position the brand in the minds of the
customers the company or dealer should keep the track of this shift in preferences. Hence
the main purpose of this study is to find the A Study on Analysis and Project of Market
Strategies of Automobile Companies in India followed by Kothari Wheels and its
Competitors

Purpose of study
The purpose of the study is to know the Brand preference and to know the factors
affecting and change in buying behavior of the customer. The marketing strategies can be
designed in accordance with this change. It will be helpful for the managers to make
decisions. Hence, this study should be conducted. Management will come to know the
influential factors, why consumers preferring RNS motors to purchase a car and it will help
to increase sales of cars, and they will come to know the consumer buying behavior,
expectation and the drawback of the management. This study will help the management for
making strategic decisions, and to know the company market share, and building a good
brand.

LIMITATION:
The sample size of 100 customers may not reveal the exact result and same of the
information provided by the respondents may be biased.

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A Study of Analysis of Market Strategies in Automobile Companies in India

RESEARCH METHODOLOGY:
Sample Size- 100
1) DATA COLLECTION METHODS USED:
Primary and secondary data collected to carry out the research work.
Primary data (Survey data):
Information was collected directly from the customers by using the well-
structured pre tested questionnaire to know about the Marketing Strategies followed by
Kothari Wheels and its Competitors
Secondary data-
In this study Secondary Data is used for exploratory research and secondary
data includes data collection of information from newspapers, magazine reviews and
Internet information about car market as an overall and competitors in that sector.
2) MEASUREMENT TECHNIQUE:
Questionnaire:
Questionnaire is a formalized instrument for collecting information
directly from the respondents. During this research questionnaire was used as
measurement technique for getting information from the customers in the twin
cities.
3) SPECIFICATIONS OF THE SAMPLE:
a. Define the Population:
Element: people interested in owning Cars and people who owned car.
Extended to: Pune-Mumbai city.
b. Sampling Method:
The sample is selected based on non- probability sampling
method.
c. Sample size:
Sample size is 100 customers.

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A Study of Analysis of Market Strategies in Automobile Companies in India

RESEARCH DESIGN

Define the Research problem

Estimate the value of information

Select the value of information

Select the Data Collection Method

Select the Measurement Technique

Select the Sample

Select the Analytical Approach

Evaluate the Ethics of the Research

Specify the Time & the Financial cost

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A Study of Analysis of Market Strategies in Automobile Companies in India

Benefit to Academics:
It helps in the following ways-
1) The market for new cars in general and market in twin cities in
particular.
2) Customers Decision Making Process for new cars.
3) Customers choices of brands in new car segment.
4) It will help in understanding, reviewing and suggesting improvements
in creating a market for Maruti Suzuki cars at Kothari Wheels.

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A Study of Analysis of Market Strategies in Automobile Companies in India

INDUSTRY PROFILE
BRIEF HISTORY OF AUTOMOBILES
The automobile industry has changed the way people live and work. The
earliest of modern cars was manufactured in the year 1895. Shortly the first appearance
of the car followed in India. As the century turned, three cars were imported in
Mumbai (India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first
wheel was used for transportation in India. By 1600s small steam-powered engine
models was developed, but it took another century before a full-sized engine-powered
vehicle was created.
Brothers Charles and Frank Duryea introduced the actual horseless carriage
in the year 1893. It was the first internal-combustion motor car of America, and it was
followed by Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-
Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding
windscreens and hood, and an aluminum body. Chauffeurs usually drove it and
emphasis was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon
tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929
featured an 8-cylinder engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back
door that suited more to the needs of families. In 1930s, vehicles were less boxy and
more streamlined than their predecessors. The 1940s saw features like automatic
transmission, sealed-beam headlights, and tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-
Benz 300SL. It was built on compact and stylized lines, and was capable of 230 kmh
(144 mph).
Modern cars are generally light, aerodynamically shaped, and compact.

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A Study of Analysis of Market Strategies in Automobile Companies in India

GROWTH OF AUTOMOBILE INDUSTRY IN INDIA


Following India's growing openness, the arrival of new and existing models, easy
availability of finance at relatively low rate of interest and price discounts offered by the
dealers and manufacturers all have stirred the demand for vehicles and a strong growth of
the Indian automobile industry.

The Indian auto industry, worth US$ 34 billion in 2006, has grown at a CAGR of 14 per
cent over the last five years with total sales of vehicles reaching around 9 million vehicles
in 2005-06. That number is likely to see a significant boost, given that the first half of
2006-07 has already witnessed a staggering growth rate of 17.12 per cent. Domestic car
sales for the April-September 2006 period stood at an impressive 4.86 million vehicles,
including cars, two-wheelers and commercial vehicles. According to industry experts, if
this trend continues, sales could touch 10 million by March 2007, clocking an annual
growth rate of 20 per cent.

STATUS IN INDIA

India is on every major global automobile players roadmap, and the reasons for the
growth are:

India is the second largest two-wheeler market in the world


Fourth largest commercial vehicle market in the world
11th largest passenger car market in the world
Expected to be the seventh largest by 2016

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A Study of Analysis of Market Strategies in Automobile Companies in India

ROBUST PRODUCTION

Indias car production capacity is in for a US$ 2 billion boost. Auto majors have
announced massive investment plans that will push the countrys car production past the
psychological 2 million mark by the end of fiscal 2006-07, up 70 per cent from 1.4 million
units now. Even at 2 million, India, which stood at No.11 among global car producing
nations, will move two steps ahead, past UK (1.6 million) and Canada (1.35 million). It
will be neck and neck with Brazils 2-million capacities at No.8.

The automobile industry witnessed a growth of 19.35 percent in April-July 2006


when compared to April-July 2005, as is evident from this years production trends.

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A Study of Analysis of Market Strategies in Automobile Companies in India

Table: Automobile Trends in India During 2004-05 To 2005-06

Automobile Production Trends


Category 2004-05 2005-06
M&HCVS 214807 219297
LCVs 138896 171781
Total CVs 353703 391078
Passenger Cars 960487 1045881
Utility Vehicles 182018 196371
MPVs 67371 66661
Total Passenger vehicles 1209876 1308913
Scooters 987498 1020013
Motorcycles 5193894 6201214
Mopeds 348437 379574
Total Two Wheelers 6529829 7600801
Three Wheelers 374445 434424
Grand Total 8467853 9735216
Source: Society of Indian Automobile Manufacturers (SIAM)

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A Study of Analysis of Market Strategies in Automobile Companies in India

DOMESTIC SALES

Increased affluence, wider selection and the ready availability of car loans is
driving the Indian car market through the roof. During the last five years (2000-05), the
production of passenger cars in India increased by more than 100 per cent. India achieved
the sales of 1.11 million vehicles in year (2005).

Domestic sales have been growing at a clipping pace:

Passenger car sales rose by 22.84 per cent during April-September 2006, compared
to the corresponding period n 2005.
The cumulative growth of overall sales of passenger vehicles during April-
September of 2006-07 was 20.73 percent.
Utility Vehicle (UVs) sales grew at 12.85 per cent during the same period.
Overall, the commercial vehicles segment grew at 36.96 per cent. Growth of
Medium and Heavy Commercial Vehicles was 39.92 per cent. Light Commercial
Vehicles also performed well with a growth of 32.86 percent.

EXPORTS

India is fast emerging as a manufacturing base for car exports. According to the
Society of Indian Automobile Manufacturers (SIAM), a total of 89,338 vehicles were
exported in September 2006, a 58.07 per cent jump as compared to the same month last
year. While passenger vehicle exports grew at 13.15 per cent, two-wheelers and
commercial vehicle exports grew at 27.80 per cent.

MAJOR MANUFACTURERS OF AUTOMOBILES IN INDIA


Maruti Udyog Ltd.
Mahindra and Mahindra.
Hero Motors.
Hindustan motors.
Telco

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A Study of Analysis of Market Strategies in Automobile Companies in India

FOREIGN PLAYERS IN INDIA

Calendar 2006 has seen the entry of many high-end brands into the country. The Indian
automobile market will see at least 30 new launches, spanning everything from affordable
hatchbacks to mid-size models to super luxury high-end cars and SUVs.

Mercedes, BMW, Porsche, Audi, Bentley and Rolls Royce are already here. Now,
the Italian marquee Lamborghini is also planning to enter the country. The Italian
marquee plans to launch the Gallardo.
German luxury car maker Audi AG is preparing to drive into India a range of
sporty, lifestyle cars like S8 and RS4 early next year. The year 2007 will also mark
Audi's entry into merchandising in Indian car bazaar.

ECONOMIC IMPACT

On the canvas of the Indian Economy, Auto Industry occupies a prominent place.
Due to its deep forward and backward linkages with several key segments of the economy,
automotive industry has a strong multiplier effect and is capable of being the driver of
economic growth. A sound transportation system plays a pivotal role in the country's rapid
economic and industrial development. The well-developed Indian automotive industry ably
fulfils this catalytic role by producing a wide variety of vehicles: passenger cars, light,
medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters,
motorcycles, mopeds, three wheelers, tractors etc.

The automotive sector is one of the core industries of the Indian economy, whose
prospect is reflective of the economic resilience of the country. With 4% contribution to the
GDP and nearly 5% of the total industrial output, the automotive sector has become a
significant contributor to the exchequer. Continuous economic liberalization over the years
by the government of India has resulted in making India as one of the prime business
destination for many global automotive players. The automobile industry witnessed a
growth of 19.35 percent in April July 2006 when compared to April July 2005. The Indian

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A Study of Analysis of Market Strategies in Automobile Companies in India

automobile Industry has a mix of large domestic private players such as Tata, Mahindra,
Ashok Leyland, Bajaj, Hero Honda and major international players including GM, Ford,
Daimler Chrysler, Toyota, Suzuki, Honda, Hyundai and Volvo.

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A Study of Analysis of Market Strategies in Automobile Companies in India

ORGANIZATION PROFILE

MARUTI UDYOG LIMITED

ORGANIZATION VISION:

"The Leader in the Indian Automobile Industry, creating Customer Delight and
Shareholder's Wealth; A pride of India."

OUR CORE VALUES:


1. Customer Obsession
2. Fast, Flexible and First Mover
3. Innovations and Creativity
4. Networking and Partnership
5. Openness and Learning
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the
lack of an efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide.
This was not only due to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the top auto
manufacturing country in the world).
A license and a Joint Venture agreement were signed between Govt of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were:


1. Modernization of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources.

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A Study of Analysis of Market Strategies in Automobile Companies in India

3. Production of large number of motor vehicles which was necessary for economic
growth.

TECHNOLOGICAL ADVANTAGE:
We have introduced the superior 16 * 4 Hypertech engines across the entire
Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit
computer to a fuel efficient 4-valve engine to create optimum engine delivery. This means
every Maruti Suzuki owner gets the ideal combination of power and performance from his
car.
Our other innovation has been the introduction of Electronic Power Steering (EPS) in
select models. This results in better and greater maneuverability. In other words, our cars
have become more pleasurable to drive.

PRDUCTION/ R & D:
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the
Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average,
two vehicles roll out of the factory every minute. And it takes on an average, just 14 hours
to make a car. More importantly, with an incredible range of 11 models available in 50
variants, there's a Maruti Suzuki made here to fit every car-buyer's budget.

Production Milestones
1 st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
10,00,000 vehicles produced by March, 1994
15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 2000
35,00,000 vehicles produced by December 2001
40,00,000 vehicles produced by April, 2003

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A Study of Analysis of Market Strategies in Automobile Companies in India

45,00,000 vehicles produced by April, 2004

MILESTONES:
2006
The car of the Year Maruti SWIFT.
2005
The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8%
2004
New (non AlC) variant of Alto, Alto becomes India's new best selling car LPG
variant
Of 'Omni Cargo', Versa 5-seater, a new variant Baleno LXI, a new variant Maruti
Closed the financial year 2003-04 with an annual sale of 472122
Units, the highest ever since the company began operations 20 years ago

2003
New Suzuki Grand Vitara XL-7,
Redesigned and all-new Zen
New upgraded WagonR
Enters into partnership with State Bank of India
Production of 4 millionth vehicle. Listed on BSE and NSE after a public
issue oversubscribed 10 times
2002
WagonR Pride
Esteem Diesel. All other variants upgraded
Maruti Insurance. Two new subsidiaries started: Maruti Insurance
Distributor Services and Maruti Insurance Brokers Limited
Alto Spin LXi, with electronic power steering
Special edition of Maruti 800, India's first colour-coordinated car
Maruti True value in Mumbai
Maruti Finance in Mumbai with 10 finance companies

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A Study of Analysis of Market Strategies in Automobile Companies in India

Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 Percent
2001
Zen Lxi
Maruti True Value launched in Bangalore and Delhi
Maruti Versa, India's first luxury MPV
Alto Spin LXi, with electronic power steering
Alto Vxi
Customer information centers launched in Hyderabad, Bangalore and Chennai
Launch of versa
2000
First car company in India to launch a Call Center
New Alto
Altura, a luxury estate car
IDTR (Institute of Driving Training and Research) launched jointly with
the Delhi government to promote safe driving habits

1999
Maruti 800 EX ( 796cc, hatchback car)
Zen LX (993cc, hatchback car)
Zen VXi (993cc, hatchback car with power steering)
Omni XL ( 796cc, MUV, high roof)
Baleno (1600cc, 3 Box Car)
Wagon R

Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social
initiatives
1998
Maruti launches website as part of CRM initiatives
Zen D (1527 cc diesel, hatchback car)
Zen VX & Zen VX Automatic

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A Study of Analysis of Market Strategies in Automobile Companies in India

New (Omni & Omni E) (796cc, MUV)


Launch of website as part of CRM initiatives
1997
1998 Esteem (1299cc, 3 box car) LX, VX and AX
New Maruti 800 (796cc,hatchback Car) Standard and Deluxe
Produced the 2 millionth vehicle since the commencement of production

1996
Gypsy (E) (970cc, 4WD 8 seater)
Omni (E) (796cc, MUV, 8 seater)
Gypsy King (1298cc, 4WD, off road vehicle)
Zen Automatic (993cc, hatchback car)
Esteem 1.3L (1298 cc, 3 box Car)AX
Launch of 24-hour emergency on-road vehicle service
1995
Esteem 1.3L (1298 cc, 3 box car)VX
With the launch of second plant, installed capacity reached 200,000 units
1994
Esteem1.3L (1298cc, 3 box car) LX Produced the millionth vehicle since the
commencement of production
1993
Zen (993cc, hatchback Car), which was later exported in Europe and
elsewhere as the Alto
1992
SMC increases its stake
1991
Reaches cumulative indigenisation of 65 percent for all vehicles produced
1990
Maruti 1000(970cc, 3 box), India's first contemporary sedan

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A Study of Analysis of Market Strategies in Automobile Companies in India

1988
Installed capacity increased to 100,000 units
1987
Exported first lot of 500 cars to Hungary
1986
Maruti 800 ( New Model-796cc, hatchback Car)
Maruti 800 ( New Model-796cc, hatchback Car)
1985
Launch of Maruti Gypsy (970cc, 4 WD off-road vehicle)
1984
Omni, a 796cc MUV
Installed capacity reached 40,000 units
1983
Maruti 800, a 796 cc hatchback, India's first affordable car.
Production was started under JV A
1982
License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan
1981
Maruti Udyog Ltd was incorporated under the provisions of the Indian
Companies Act, 1956

AWARDS
2006
JD Power SSI: 1st Rank, 3 years in a row 2004 2006
Tops TNS TCS Survey in key segments, 5 years in a row 2002 2006
Among Top 5 car companies in the Forbes list of the Worlds Most Reputed
Companies Nov 06
Features in Business Todays annual list of 20 companies to look for in 2007
Nov 06

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A Study of Analysis of Market Strategies in Automobile Companies in India

The only automobile manufacturer to feature in Business Todays list of Indias


Best 10 Marketers Nov 06
Ranks 1st for Corporate Social Responsibility by TNS Automotive
2005
Ranks 1st among Automobile companies in the Corporate Image Monitor (CIM)
Study 2005 conducted by AC Nielsen ORG-MARG
Receives a commendation from Ministry of Economy, Trade and Industry (MITI)
of Japan Sept 05
Number one in JD Power SSI for the second consecutive year
Number one in JD Power CSI for the sixth time in a row - the only car to win it so
many times
M800, WagonR and Swift topped their segments in the TNS Total Customer
Satisfaction Study.
Leadership in the JD Power Initial Quality Study - Alto number one in its segment
for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a
row, Swift number one in the premium compact segment
WagonR and Esteem top their segments in the JD Power APEAL study
Ranks 1st in Auto sector for Corporate Reputation Strength (CSR) study Feb 05
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in
Auto sector)-Feb 05
Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC ( 2nd
time in a row)-Feb 05
First Indian car manufacturer to reach 5 million vehicles sales
Business World ranks Maruti among top five most respected companies in India-
Oct 04
Maruti ranked among top ten (Rank7) greenest companies in India by Business
Today - Sep '04
2004
Maruti Suzuki was No.1 in Customer Satisfaction, No.1 in Sales
Satisfaction No.1 in Product Quality (Esteem and Alto) and No.1 in

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A Study of Analysis of Market Strategies in Automobile Companies in India

Product Appeal (Esteem and Wagon R)


No.1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)
Business World ranked us among the country's five most respected companies
Business World ranked us the country's most respected automobile company
Voted Manufacturer of the year by CNBC
Voted one of India's Greenest Companies by Business Today-AC
Nielson ORG-MARG
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10
automotive brands in "Most Trusted Brand survey 2003"
J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study
2003.
MUL tops in J D Power CSI (200 1) for 4th time in a row
2001
MUL tops in J D Power CSI (200 1) for 2nd time in a row: another
international first
2000
Maruti bags JD Power CSI 1st rank; unique achievement by market

leader anywhere in the world


1999
MSM launched as model workshop in India; achieves highest CSI rating.
Central Board of Excise & Customs awards Maruti with "Samman
Patra", for contribution to exchequer and being an ideal tax assessee

1998
CII's Business Excellence Award
1996
Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded
the Star Trading House status by Ministry of Commerce

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A Study of Analysis of Market Strategies in Automobile Companies in India

1994-95
Engineering Exports Promotion Council's award for export performance
1994
Best Canteen award among Haryana Industries as part of employee welfare
1992-93
Engineering Exports Promotion Council's award for export performance
1991-92
Engineering Exports Promotion Council's award for export performance

Corporate Social Welfare:


Welfare Camps
Every year we organize blood donation camps along with Red Cross, in which
employees donate blood. Eye check-up camps, family planning related camps and other
health camps are also organized periodically.
Medical support & welfare
The employees of Maruti have always donated generously to people affected by
natural calamities. They contributed Rs.2 million to rehabilitate earthquake victims in
Latur. We also run a creche for the children of construction workers, which provides food
shelter and education for 85 children.
Education to underprivileged
DPS Maruti Shiksha Kendra, an education programmed for the underprivileged,
was Inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate
the children of below poverty line (BPL) families from the nearby villages of Gurgaon
district. 120 students in the age group of 5-8 years have already enrolled. DPS Maruti Kunj
is providing books, writing material and uniforms, refreshment and transport facilities to
these children.

Education Programmed for mothers


'Chetna', an education programmed for mothers - is an another endeavor to provide

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A Study of Analysis of Market Strategies in Automobile Companies in India

basic education to mothers of the students of DPS Maruti Kunj and surrounding villages.
Majority of students at the school is first generation learners. Therefore, the concept of
starting a movement of learning 'Chetna' for mothers has been promoted. The response
has been encouraging and about 130 mothers are attending it regularly.

ENVIRONMENT CONCERN
Our environment Policy:
Prevent pollution.
Promote energy reduction and use of alternative energy.
Manage/ reduce those materials that put stress on environment.
Promote the three R's (Reduce, Reuse, Recycle).
Promote "Green" procurement.
Provide our employees with environmental education to
Increase their awareness.
Since the commencement of operations in 1981 we've been committed to the
protection of the environment and conservation of non-renewable .energy sources. Our
proactive approach depends not only upon meeting the expectations of the regulatory
authorities but achieving the high standards that we've set as a responsible corporate
citizen.
This philosophy of trying to make a difference to the environment penetrates through
our employees to the process of manufacture and finally into our products.
Pollution Control Camps
Our elaborate system of Free Pollution Check-Up Camps which run at regular
intervals, is designed at making the cars already on the road operate more efficiently. It
also inculcates awareness for environmental protection among the many car users of
India.

Rain Water Harvesting


To recharge the aquifer, measures were taken to harvest the rain water through soak

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A Study of Analysis of Market Strategies in Automobile Companies in India

pits, recharging shafts and water lagoons. These measures are capable of charging nearly
50% of the average annual rainfall at Maruti, into the Earth.
MARUTI CULTURE:
Our employees are our greatest strength and asset. It is this underlying philosthat
has molded our workforce into a team with common goals and objectives. Our Employee-
Management relationship is therefore characterized by:
Participative Management.
Teamwork & Kaizen.
Communication and information sharing
To implement this philosophy, we have taken several measures like a flat
organizational structure. There are only three levels of responsibilities ranging from the
Board Of Directors, Division Heads to Department Heads. Other visible features of this
philosophy are an open office, common uniforms (at all levels), and a common canteen for
all.
This structure ensures better communication and speedy decision-making processes. It
also creates an environment that builds trust, transparency and a sense of belonging
amongst employees.

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A Study of Analysis of Market Strategies in Automobile Companies in India

COMPANY PROFILE

The Kothari Wheels.


KOTHARI WHEELS is a multi-franchise automobile dealership based at Pune.
The Kothari Group with a standing of more than three decades in Automobile industry
established their prestigious Maruti Dealership in the year 2006.

Ideally located on Hubli Dharwad highway the dealership can boast of a spacious
4000 sq ft. and well-lit showroom with ample frontage. The showroom has the complete
range of cars for display and test drive and professional and trained sales staff always eager
to serve and delight our value customers.
The service center with an area of 6000 sq ft has two post lifts, pneumatic tools,
computerized wheel alignment and wheel balancing machines and a most modern paint
booth, which can handle any make of car. The service personnel highly trained and
professional with up to date knowledge owing to the groups policy of implementing
continuous learning programs. A 24 hours emergency road service attached to the service
division is always on call and is a confidence booster to our customer.
The parts center in an area of 2000 sq ft is well stocked and has a wide range of accessories
to suit the varying needs of our customers.
The dealership with its professional management looks forward to their growth by
focusing on customer centric and value added offers to their customers. Kothari Wheels(P)
Ltd with their network of branches at Bagalkot and Karwar are striving hard to satisfy their
customers.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

ORGANIZATION CHART
Managing Director

Deputy General Manager HRD

M. W/S Parts Sales Account


Manager Manager Manager
M.T.V

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Team Leader Team Leader Team Leader Team Leader


Sr. Sales
Executive

Sales Executive Sales Executive Sales Executive Sales Executive

Sales Executive Sales Executive Sales Executive Sales Executive

Reception

Data Entry

SALES DEPARTMENT

Managing Director

Deputy General Manager

Sales Manager

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Team Leader Team Leader Team Leader Team Leader


Bagalkot Karwar

Sales Executives Sales Executives Sales Executives Sales Executives

38
A Study of Analysis of Market Strategies in Automobile Companies in India

WORK STATION

Managing Director

Deputy General Manager

Customer Care Works Manager


Manager

Assistant Customer Assistant Works


Care Manager Manager

Service Advisor

Floor Floor
Supervisor Supervisor

Technicians Technicians

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A Study of Analysis of Market Strategies in Automobile Companies in India

DEPARTMENTS STUDY
A) INVENTORY DEPARTMENT
MAINTAINING GOOD INVENTORY REQUIRES:
1. Parts Classification
2. Scientific Demand Forecasting
3. Correct stocking rules
4. Ordering based on EOQ, not rule of Thumb
5. Frequent ordering or fast moving parts
6. Minimize / eliminate VOR purchase
7. Proper record maintenance
8. Proper storage of parts
9. Regular physical stock checking

CAUSES OF BAD INVENTORY:


1. Wrong parts ordering
2. Improper storing of parts
3. No scientific ordering
4. Continuous stock ordering
FUNCTIONS OF SUGGESTED ORDER QUANTITY
1. It shows the previous month transactions
2. Present month required parts quality
3. It shows the time taken for to place the order and getting the same order
4. It shows the safety stock
QUANTITY SUGGESTED FOR ORDERING BASED ON THE FOLLOWING
FUNCTIONS FACTORS
1. Forecast demand (DMD) for the month under consideration
2. Supply rule table for the part (SRT)
Current stock availability for the part (AVBL)
3. Pending purchase orders to be realized (PPO)
4. Back orders for the part, if any (BOQ)(Pending customer order)
SOQ = (DMD*SRT) AVBL PPO + BOQ

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A Study of Analysis of Market Strategies in Automobile Companies in India

B) SERVICE DEPARTMENT
WORKMEN 25
SUPERVISERS 04
HEAD OF THE DEPT 01
When customer enter the workshop with vehicle then his vehicle problem is entered in
the job card
The job cards are of three copies
Customer copy
A/C copy
For technician
Three free services provided by the company.
After the free services the cost of one paid service is Rs- 450

Following Reports are maintained by services section


Customer complaints
Camps report
Free service reports
Test conducted report
Feed back report
Tools and equipment file.
Technology used in service
For petrol car-
MPFI- Multi Point Fuel Injection
For diesel car-
Pre-Delivery Investigation (PDI) Section
Functions of PDI
1. PDI is the co-ordination of sales and services
2. check the damages of the vehicle
3. Register the engine no
4. The main function of PDI is over all checking of vehicle, external damages
through check, paint, electrical connection.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Terms and conditions for the service


1. The vehicle is driven and tested (including test drive outside the workshop)
repaired and stored at the sole risk, responsibility and liability of the in case of
damage due to an accident repairs will be carried out the insurance of the vehicle.
2. The customer indemnity Kothari Wheels (P) Ltd against any risk liability
responsibility for loss or damage to the vehicle and or life or property of all persons
arising out of repairing / servicing / test driving of the vehicle when the vehicle is
in BMPL custody and the customer confirms, to have obtained insurance of the
vehicle together with accessories and other accompaniments.
3. The customer will not hold BMPL responsible / liable for any delay in delivery or
in carrying out of repairs or procurement of spare parts for reasons beyond BMPL
control.
4. The customer undertakes to delivery of the vehicle within 48 hours of advice
regarding completion of the work. In the event of delay the customer has no
objection to BMPL charging storage charges at Rs 250 per day along with the
charges of repair spare parts etc.
5. The customer has no objection to BMPL levying estimation charges of Rs 500 or
10% of the total lab hours charge whichever is highest if the job is not entrusted to
BMPL after obtaining the estimate and agree to pay the same in addition to
storage charges referred to above.
6. Delivery to customer will not be given on credit.

7. Demand draft and pay order should be made in favour of Kothari Wheels(P) Ltd
payable at Hubli.
8. No vehicle will be delivered without receipt.
9. Vehicle will not be delivered t customer after 6:30 pm.
Needs Improvements

38
A Study of Analysis of Market Strategies in Automobile Companies in India

1. We will provide quality workshop


2. Daily training of manpower
3. Usage of proper tools and equipments
4. We will deliver the car at the promised time.
5. We will fix the problem on the first visit.
6. We will provide proper estimation of charges before start of jobs.
7. We will explain the charges taken and work carried out.
8. We will be helpful and have patience in listening to the needs of the customer.
9. We will not over estimate the repair time.
10.We will take of services and repair as per customers convenience.
C) SALES DEPARTMENT
MD = Managing Director
DGM = Deputy General Manager
T.L = Team Leader
S.E = Sales Executive
M.T.V = Maruti True Value
The following chart explains the Sales Department. In that Sales Manager handles
the sales promotion activities, Customer Care Executive handles the identifying the
customer problems and solving. Branch Managers are district wise and their work is to
take the information form the sales executives about the needs of vehicles and send the
same information to the Sales Manager and bring the vehicles from Sales Manager to Sales
executives.
Karnataka in Hubli Kothari Wheels(P) Ltd. showroom is located on PB road at
Unkal Cross. The workshop located at there itself, carries out after sales operations, free
service, paid service and running repairs. Besides this the workshop also in to selling of
pre-owned cars and Ranks First for the sale of pre-owned cars in India. The stockyards
situated at attach to showroom carries the pre-delivery inspection of all the vehicles and
Gets them ready for the sales. It has paved surface stocking area of about 50 to 100 Maruti
vehicles.
Quality Management System:

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Kothari Wheelshas a documented and established quality management system to


ensure that
The documentation structure of Kothari Wheelscan be represented in the
following manner.
1. Quality manual
2. Quality system Procedures
3. Work instructions and checklist
4. Forms and cards
5. Reference Standards and External Manual
The quality manual describes the ISO 9001: 2000 standards adapted at Kothari
Wheels.
The quality management system procedure manual BM/HBL/PM/O 1 contents the
detail of how the processes in the organization are being conducted, control and
recorded and meet the customer demands
The work instructions and checklist contains how the specified activities are to be
carried out.
The forms and records support the activities carried out and controlled.
All the external manuals and standards are controlled.
Management Commitment:
The management of Bellad is committed to quality management system through
leadership and actions. The management shall provides the basic infrastructure and
continually upgrade the work environment.
The management is also committed to
The quality policy and quality objective of organization.
Ensures that the policy is understood, implemented and maintained at all the levels
of the organization
Ensure focus on the customer requirement throughout the organization.
Ensure availability of necessary resources.
Review the established quality management system periodically through the
Management reviews.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Customer Focus at Sales:


The Field executives visit the customers and explain the features of the vehicle to
them
Demonstration and test drives shall be given whenever required.
The Performa invoice/price list terms and conditions will be given.
The order booking forms duly collected from the customer and clarity with regard
to the terms and conditions are explained and the copy id handed over to customer
along with the receipt or payment made.
Any amendment required by the customer, it should be recorded on the order
booking
Forms
The delivery is insured as per the checklist duly explaining all the features
mentioned
In the checklist.
Customer Focus at Service:
a) The customer can book the vehicle for the servicing/repairs either through the
telephone or personally the front office.
b) The telephone operator shall enter the detail in booking register.
c) The list of the vehicles shall be given to front office ~very morning to accept the
vehicles for servicing for that date.
d) The customer can bring their vehicle for servicing without booking. However such
vehicle shall be accepted only after ensuring that there is enough capacity for the
booked vehicles.
e) On the bases of kilometers run by the vehicle and customer requirement, the
customer shall explained about the type of the servicing/repairs and spare
parts required and to ensure that the service station has the required capacity to
accept the vehicle.
f) Before accepting the vehicle, a mutually acceptable delivery time and date is fixed
with the customer.
g) The customer's consent shall be taken on the estimated cost of the repair/service of
the vehicle.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

h) All the details of the work required along with the date and time of the delivery and
the established cost shall be recorded in the job order card before commencement
of the work.
i) Incase of any change in the terms any change in the services, the cost or the
delivery time then the client shall be informed verbally over the phone and
any change shall be recorded in the Job Order Card.

Quality Policy:
The management of Bellad Motors shall always remain committed to its objectives
for quality for with the main thrust on meeting the customer expectation and
requirements.
The management's commitment to quality reflected in its quality
policy.
"We at Kothari Wheelspledged to make quality a way of life through commitment to
Continual improvement customer satisfaction and adhering to quality management
System"
The management ensures that the policy is understood implemented and maintained at all
levels of the organization and continual improvement in customer satisfaction.
At present our quality objectives are
We ensure that customer complaints do not exceed 8 per 10,000
vehicles.
We ensure that repeat job do not exceed 2 %
We ensure CSI of90% with minimum of 15% feed back cards.
We ensure SSI of80% at sales with minimum of20% feedback cards.
We ensure to conduct 3 free emission/service check camps per quarter.
We ensure to launch I incentive scheme per month.
We ensure to conduct 4 internal audits and 4 MRM's per financial year of quality
Management system.
QUALITY MANAGEMENT SYSTEM PLANNING
The quality plan at Kothari Wheelscomprises the identification of the
following.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

The various models of vehicles from Maruti Udyog Ltd sold and serviced at
Kothari Wheels.
The various types of services done at Kothari Wheels.
The external manual acquired from Maruti Udyog Ltd to sell and service the
vehicles.
The various models of vehicles from Maruti Udyog Ltd. Sold and serviced
at Bellad Motors.
Maruti-800 car
Maruti omni
Zen Estilo
Alto
Wagon-R
Esteem
Versa
Baleno
Vitara
Swift

The various types of servicing done at Kothari Wheels.


Services-Free service and paid service.
Running repair.
Quick service repair.
Break down service.
The external manuals acquired from Maruti Udyog Ltd. To sell and service the
Vehicles.
Sales policy bulletin
Marketing circulars
Service manuals
Service circulars
Service bulletin
Warranty bulletin

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Spares parts price catalogue


Spares parts price list
Spare parts procedure manuals
Spare parts bulletin
Spare parts circulars
Maruti service quality standards
Customer care manual
Service marketing manual.
Competence, Awareness and Training:
a) Recruitment is done as per MUL norms of education and experience.
b) There exists well-defined system to identify and provide training to all the
personnel procedure No. BMPL/HBL/PR/12.
c) Induction training and on job training shall be provided
d) All concerned shall be trained on the latest sales/service/spares/bulletins/circulars
from MUL.
e) As per the MUL scheduled training programme Executives/Mechanics/Manager
will be deputed for training.
f) Training records shall maintain.
Identification and Trace ability:
Identification:
1. New vehicle, which has completed pre-delivery inspection, shall be identified as
PDI- OK on the windshield, MUL Invoice and job order card, PDI and stockyard
register.
2. Identification of vehicles at the service workshop shall be through vehicle model,
Registration number and unique job order Nos.
3. Inspection and test status of service/repair of vehicles shall be identified through
the job order card.
4. Completed job order card and the stamp of the final inspector shall identify Final
OK vehicles.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

5. Identification of spare parts shall be in the form of part Nos., as per Maruti
guidelines.
6. Identification of new vehicles is by its colour, model, chassis and engine Nos.,
MUL Invoice, stockyard register.
Trace ability:
1. Trace ability shall be established though vehicle registration No. Job order number
And the date of job order.
2. Trace ability of new vehicle at stockyard is established through chassis and engine No,
Key no, and parking slot No.
Monitoring and Measurement:
Customer Satisfaction:
1. Feedback received from the customer on their perception and service experience
Customer satisfaction measure (percentage) is generated using software supplied by
Maruti Udyog Ltd.
2. Results of customer satisfaction measure are discussed in the management review
Meetings and counter measure for the continual improvement is initiated.
Internal Audit:
There is a well-defined procedure No.: BMPL/HBL/04 to conduct internal audit and
examine the implementation of Quality Management System.
Monitoring and Measurement of Processes:
1. Pre-sales process is monitored and measured by the number of enquires and the
Closure of sales.
2. Sales process is monitored customer personal docket checklist, commitment and
Delivery, SSI%.
3. In service, repeat jobs, customer complaints, feedback card %, CSI%, PSF%, and final
Inspection is monitored.
4. Statistical graphs are used to indicate the measures.
IMPROVEMENT
Continual Improvement
Kothari Wheels, Hubli shall continually improve the effectiveness of the Quality
management System through commitment to Quality policy, Quality objectives as well as

38
A Study of Analysis of Market Strategies in Automobile Companies in India

use of audit results, management review meeting decisions, analysis of data, corrective and
preventive actions.
Corrective Action:
There is a documented system procedure No. BM/HBL/PR/06 to implement corrective
action on all the non-conformities arising from:
Customer complaints
Repeat Jobs
System Non Compliances
Post Service Follow Ups
Post Sales Follow ups
CSI negative feedback
SSI negative feedback
Road test
Final inspection
Internal Audit findings
Supervision by supervisor\ Work Managers
External Audits.
Preventive Action
There is a documented System Procedure No.BM/HBL/PR/07 to identify potential Non-
Conformities like recurring Non-Conformities determined from Repeat job, Final
Inspection, washing Quality as well as for potential Non-Conformities determined during
MRM, Meetings and Audits and Analysis of Customer Feedback.

ANALYSIS AND INTERPRETATION


Keeping in view of the objectives, the data so collected from various sources and were
analyzed with the help of appropriate techniques. The results of the study are presented in
this chapter under the following headings.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

1. The major differences in promotional activity undertaken by Kothari Wheels and


competitors.

2. Different methods of sales practices followed by Kothari Wheels and competitors.

3. Major Service level differences between Kothari Wheels and its competitors.

4. Customer retention strategies followed by Kothari Wheels and its competitors.

The major differences in promotional activity undertaken by Kothari Wheels and


competitors.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Table 1, Awareness about promotional activities of the dealers

Count
Do you aware about
the promotional
activityunder taken by
that dealer?
Yes No Total
if yes where Bellad motors 22 6 28
have you Manickbag TATA Motors 17 2 19
purchased Hyundai motors 3 3 6
the car?
GM 2 2 4
Shoda Toyota 6 2 8
RNS Motors 31 4 35
Total 81 19 100

40

30

20

10
Do you aware about t

Yes

0 No
Bellad motors Hyundai motors Shoda Toyota
Manickbag TATA Motor GM RNS Motors

38
A Study of Analysis of Market Strategies in Automobile Companies in India

78% respondents are aware about the promotion activity undertaken by Kothari
Wheels.
89% respondents are aware about the promotion activity undertaken by Manickbag
TATA Motors
88% respondents are aware about the promotion activity undertaken by RNS
Motors.
Table 2, Awareness level of the advertisements of the dealers

Count
Hve you seen the
advertisement of that
dealer?
Yes No Total
Bellad motors 25 3 28
Manickbag TATA Motors 13 6 19
Hyundai motors 6 6
GM 4 4
Shoda Toyota 6 2 8
RNS Motors 26 9 35
Total 80 20 100

38
A Study of Analysis of Market Strategies in Automobile Companies in India

30

20

10

Hve you seen the adv

Yes

0 No
Bellad motors Hyundai motors Shoda Toyota
Manickbag TATA Motor GM RNS Motors

89% respondents have seen the advertisement of Kothari Wheels


68% respondents have seen the advertisement of Manickbag TATA Motors.
74% respondents have seen the advertisement of RNS Motors

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Table 3, Interaction of the respondents with their dealers representatives

Count
Did you intract with
representatives of that
dealer?
Yes No Total
Bellad motors 24 4 28
Manickbag TATA Motors 9 10 19
Hyundai motors 6 6
GM 4 4
Shoda Toyota 8 8
RNS Motors 25 10 35
Total 76 24 100

30

20

10

Did you intract with

Yes

0 No
Bellad motors Hyundai motors Shoda Toyota
Manickbag TATA Motor GM RNS Motors

38
A Study of Analysis of Market Strategies in Automobile Companies in India

85% respondents are interacted with representatives of Kothari Wheels.


71% respondents are interacted with representatives of RNS Motors.

Table 4, Different agencies involved in selling the car the study area

Cumulative
Frequency Percent Valid Percent Percent
Valid Bellad motors 28 28.0 28.0 28.0
Manickbag TATA Motors 19 19.0 19.0 47.0
Hyundai motors 6 6.0 6.0 53.0
GM 4 4.0 4.0 57.0
Shoda Toyota 8 8.0 8.0 65.0
RNS Motors 35 35.0 35.0 100.0
Total 100 100.0 100.0

Bellad motors

RNS Motors

Manickbag TATA Motor


Shoda Toyota

GM
Hyundai motors

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Out of 100 respondents I got 35% respondents from RNS Motors,


28% from Kothari Wheelsfollowed by 19% from Manickbag TATA motors.
RNS Motors have more market share (more than 37%) than others and is followed
by Kothari Wheels and Manickbag TATA Motors.

Table 5, How customers come to know about the existing dealers

Count
How did you come to know about the existing
brand?
Personal
selling Advertising Media Referance Total
Bellad motors 16 6 1 5 28
Manickbag TATA Motors 6 9 4 19
Hyundai motors 3 3 6
GM 2 2 4
Shoda Toyota 4 1 3 8
RNS Motors 13 14 3 5 35
Total 41 32 8 19 100

38
A Study of Analysis of Market Strategies in Automobile Companies in India

20

How did you come to

Personal selling
10
Advertising
Count

Media

0 Referance
B

R
el

ho
yu

N
M
an

S
la

nd

da
ic
d

M
kb rs

a
m

o
i m TA
ag

oy

to
ot

rs
o

ot

ot
T

or

a
A

s
M
ot
or

if yes where have you purchased the car?

57% of the Kothari Wheelscustomers are come to know through personal selling
and 21% from advertising.
50% of the RNS customers are comr to know through advertising and 46% from
personal selling.
47% of the Manickbag customers are come to through advertising and 27% through
personal selling.

Table 6, Promotional activities which motivate the customers to bye the cars at
particular dealer

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Count
Which promotional activity made you
motivate to buy the car at particular
dealer?
Exchange Discount/
Trade show mela offers Total
Bellad motors 4 16 6 26
Manickbag TATA Motors 5 6 8 19
Hyundai motors 3 3 6
GM 2 2 4
Shoda Toyota 2 3 1 6
RNS Motors 2 10 21 33
Total 13 40 41 94

30

20
Which promotional ac

Trade show
10
Exchange mela
Count

0 Discount/offers
B

R
el

ho
yu ag

N
M
an oto
la

S
nd

da
ic
d

M
kb s

a
m

ot
i m TA

oy

or
ot

ot

s
TA
r

or

a
s
M
ot
or

if yes where have you purchased the car?

Exchange mela (57%) is performing one of the best promotional activities at


Kothari Wheels, which is motivating the customers to buy the car, and on the
contrary RNS Motors is giving good discounts and offers (60%).

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A Study of Analysis of Market Strategies in Automobile Companies in India

Table 7, Ability of the sales persons to answer all queries of the customers when
they interact with them

Count
Ability of sales person to answer all your queries
satisfactory
Highly
satisfactory Satisfactory Just okay Unsatisfactory Total
Bellad motors 4 10 8 6 28
Manickbag TATA Motors 2 6 5 1 14
Hyundai motors 3 3 6
GM 2 2 4
Shoda Toyota 3 3 2 8
RNS Motors 2 9 11 3 25
Total 13 30 30 12 85

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A Study of Analysis of Market Strategies in Automobile Companies in India

12

10
Ability of sales per
8
Highly satisfactory
6
Satisfactory
4
Just okay
Count

2
0 Unsatisfactory
Be

Sh

RN
yu

M
an
lla

od

S
nd TA
ic
d

M
kb

ai
m

To

ot
ag
ot

or
yo
or

ot

s
ta
s

or
TA

s
M
ot
or

if yes where have you purchased the car?

36% customers of Kothari Wheelsare satisfied and 29% are just satisfied with
ability of sales person to solve their queries.
44% customers of RNS are just satisfied and 36% are satisfied with ability of sales
person to solve their queries.
43% customers of TATA Motors are satisfied and 35.5% are just satisfied with
ability of sales person to solve their queries.

Table 8: factors influence on the customers to continue the service of the existing
provider

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Count
What are the main factors influence you
to continue the service of the existing
providert?
Good
customer
relationship Service Brand Total
Bellad motors 16 7 5 28
Manickbag TATA Motors 8 7 4 19
Hyundai motors 3 3 6
GM 2 2 4
Shoda Toyota 5 1 2 8
RNS Motors 11 21 3 35
Total 45 41 14 100

30

What are the main fa


20

Good customer relati

onship
10
Service
Count

0 Brand

if yes where have you purchased the car?

Because of good customer relationship (57%) maintained by Kothari Wheels, that


is influencing the customers to continue the existing service.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Because of good service (60%) and (31%) good customer relationship maintained
by RNS that is influencing the customers to continue the existing service.

Table 9, Satisfaction level of the customers towards service provided by dealers

Count
Are you satisfied with service
provided by your dealer?
Yes No 3.00 Total
Bellad motors 23 4 1 28
Manickbag TATA Motors 17 2 19
Hyundai motors 6 6
GM 4 4
Shoda Toyota 6 2 8
RNS Motors 29 6 35
Total 85 14 1 100

38
40

A Study of Analysis of Market Strategies in Automobile Companies in India


30

Are you satisfied wi


20
Yes
Both
10
No
Count

0 3.00
Be

M mot

Sh

R
yu

N
M
an
lla

od

S
nd
ic
d

M ta
a
kb

ai

To

ot
ag

m AM

or
yo
or

ot

s
TA
s

or
T

s
ot
or
if yes where have you purchased the car?

Kothari Wheels and RNS are giving good service to the customers because 82% of
both the customers are said that they are satisfied with service provided by that
dealer.

Table 10, Satisfaction level of the customers towards service provided by dealers at
pre purchase stage

Count
Satisfaction level at pre prchase
Highly
satisfactory Satisfactory Just okay Unsatisfactory Total
Bellad motors 1 18 3 6 28
Manickbag TATA Motors 2 5 12 19
Hyundai motors 6 6
GM 4 4
Shoda Toyota 5 3 8
RNS Motors 3 16 11 5 35
Total 6 54 29 11 100

38
A Study of Analysis of Market Strategies in Automobile Companies in India

20

Satisfaction level a

Highly satisfactory
10
Satisfactory

Just okay
Count

0 Unsatisfactory
Be

Sh

RN
yu

M
an
lla

od

S
nd TA
ic
d

M
kb

ai
m

To

ot
ag
ot

or
yo
or

ot

s
ta
s

or
TA

s
M
ot
or

if yes where have you purchased the car?

64% customers of Kothari Wheelsare satisfied and 22% are unsatisfied with pre
purchase service given by Kothari Wheelsservice.
47% customers of RNS Motors are satisfied, 31% are just satisfied and 14% are
unsatisfied with pre purchase service given by Kothari Wheelsservice.

Table 11, Satisfaction level of the customers towards service provided by dealers at
post purchase stage

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Count
Satisfaction level at post purchase
Highly
satisfactory Satisfactory Just okay Unsatisfactory Total
Bellad motors 5 12 9 2 28
Manickbag TATA Motors 4 10 4 1 19
Hyundai motors 6 6
GM 2 2 4
Shoda Toyota 3 2 3 8
RNS Motors 5 12 17 1 35
Total 19 44 33 4 100

20

Satisfaction level a

Highly satisfactory
10
Satisfactory

Just okay
Count

0 Unsatisfactory
Be

Sh

RN
yu

M
an
lla

od

S
nd TA
ic
d

M
kb

ai
m

To

ot
ag
ot

or
yo
or

ot

s
ta
s

or
TA

s
M
ot
or

if yes where have you purchased the car?

43% customers of Kothari Wheelsare satisfied and 32% are just satisfied with post
purchase service given by Kothari Wheelsservice.
32% customers of RNS Motors are satisfied and 46% are just satisfied with post
purchase service given by Kothari Wheelsservice

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A Study of Analysis of Market Strategies in Automobile Companies in India

FINDINGS OF THE STUDY


Out of 100 respondents I got 35% respondents from RNS Motors,
28% from Kothari Wheelsfollowed by 19% from Manickbag TATA motors.
RNS Motors have more market share (more than 37%) is followed by Kothari
Wheels and Manickbag TATA Motors.
57% of the Kothari Wheelscustomers are come to know through personal selling
and 21% from advertising.50% of the RNS customers are come to know through
advertising and 46% from personal selling.47% of the Manickbag customers are
come to through advertising and 27% through personal selling.
Exchange mela (57%) is performing one of the best promotional activities at
Kothari Wheels, which is motivating the customers to buy the car, and on the
contrary RNS Motors is giving good discounts and offers (60%).
36% customers of Kothari Wheelsare satisfied and 29% are just satisfied with
ability of sales person to solve their queries.44% customers of RNS are just
satisfied and 36% are satisfied with ability of sales person to solve their
queries.43% customers of TATA Motors are 43% are satisfied and 35.5% are just
satisfied with ability of sales person to solve their queries.

Because of good customer relationship (57%) maintained by Kothari Wheels, that


is influencing the customers to continue the existing service.Because of good
service (60%) and (31%) good customer relationship maintained by RNS that is
influencing the customers to continue the existing service.

Both Kothari Wheels and RNS are giving good service to the customers because
82% of both the customers are said that they are satisfied with service provided by
that dealer.
64% customers of Kothari Wheelsare satisfied and 22% are unsatisfied with pre
purchase service given by Kothari Wheelsservice.
47% customers of RNS Motors are satisfied, 31% are just satisfied and 14% are
unsatisfied with pre purchase service given by Kothari Wheelsservice.

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A Study of Analysis of Market Strategies in Automobile Companies in India

43% customers of Kothari Wheelsare satisfied and 32% are just satisfied with post
purchase service given by Kothari Wheelsservice.
32% customers of RNS Motors are satisfied and 46% are just satisfied with post
purchase service given by Kothari Wheelsservice

Policy implications:
1. Newspaper advertisements is very effective so enhance news paper advertisements
and provide good service for existing customers which can help to increase positive
word of mouth.
2. In service station recruit the well-experienced staff that will enhance efficiency and
performance of staff and improve the quality of service.
3. Most influential factors are exchange mela, brand, service, extra offer and discounts
and price variations between the dealers. Hence conduct more exchange melas to
enhance the sales and allow cash discounts on cash payments and provide offers in
the form of 1-year free insurance, free accessories, increased number of free
services, and technical support & guidelines.
4. Provide all committed offers at the time of delivery of the car, which can reduce the
cognitive dissonance of the customer.
5. Instead of spending heavily for prospective customers, satisfy the existing
customers, which will increase positive word of mouth, and enhance the sales by
their recommendations.
To reach the excellent stage of performance it has to overcome from commitment
problem, service station problem, quality spares and accessories and should recruit the
experienced service staff.

CONCLUSION:
Winning the hearts and minds of todays sophisticated vehicle buyers will require
collaboration, commitment and communication on the part of both manufacturers and
dealers.

38
A Study of Analysis of Market Strategies in Automobile Companies in India

This study provides an overview of consumers automotive buying behaviorhow


they shop, why they buy, what keeps them coming back. The findings make it clear that
automotive manufacturer and dealers must focus on better collaboration, stronger
commitment to developing a long-term relationship with the customer, and increased
communication throughout the vehicle lifecycle if they hope to improve customer loyalty
as well as business performance.

Questionnaire

Name: ___________________________________________________________

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Adress: __________________________________________________________

Income (annual): ___________________________________________________

Contact no: _______________________________________________________

Kindly fill in the following details

1) Do you own a car?


a)Yes [ ] b) No [ ]

2) If yes from where have you purchased the car?


a) Kothari Wheels[ ]
b) Manickbag TATA Motors [ ]
c) Hyundai Motors [ ]
d) GM [ ]
e) DSK Toyota [ ]
f) Ford motors [ ]

3) How did you come to know about the existing brand?


a. Personal selling [ ]
b. Advertising [ ]
c. Media [ ]
d. Reference [ ]

4) Do you aware about the promotional activity under taken by that dealer?
a) Yes [ ] b) No [ ]

38
A Study of Analysis of Market Strategies in Automobile Companies in India

5) Which promotional activity made you motivate to buy the car at particular dealer?
a. Trade show [ ]
b. Exchange Mela [ ]
c. Discount / Offers [ ]

6) Which one of the following factors influences your purchasing decisions the most?
a. Price [ ]
b. Aesthetic [ ]
c. Brand [ ]
d. Promotional activity [ ]
e. Service [ ]
f. Others.

7) Have you seen the advertisement of that dealer?


a) Yes [ ] b) No [ ]

8) Did you interact with representatives of that dealer?


a) Yes [ ] b) No [ ]

9) Ability of sales person to answer all your queries satisfactory.

Highly Unsatisfactory Just okay Satisfactory Highly


satisfactory satisfactory

10) What are main factors influence you to continue the service of the existing
provider?

38
A Study of Analysis of Market Strategies in Automobile Companies in India

a. Good customer relationship [ ]


b. Service [ ]
c. Brand [ ]
d. Others

11) Rank the parameters that you consider at the time of selection?
a. Service [ ]
b. Price [ ]
c. Offer [ ]
d. Brand [ ]
e. Others.
[1 as highest and 5 as lowest]

12) Are you satisfied with the service provided by your dealer?
a. Yes [ ] b) No [ ]

13) Satisfaction level at pre purchase stage

Highly Unsatisfactory Just okay Satisfactory Highly


satisfactory satisfactory

14) Satisfaction level at post-purchase stage

38
A Study of Analysis of Market Strategies in Automobile Companies in India

Highly Unsatisfactory Just okay Satisfactory Highly


satisfactory satisfactory

15) Any suggestion to improve overall performance of that dealer..



Thank you for your valuable time

Coding Sheet
Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14
1 6 4 1 3 4 1 1 3 2 1 2 2
1 1 1 1 2 4 1 1 2 1 1 2 2
1 1 4 2 ## 3 1 1 2 1 1 2 2
1 6 2 1 2 2 1 1 2 2 1 3 3
1 1 1 1 2 3 1 1 3 1 1 2 2
1 6 1 1 3 3 1 1 3 1 1 2 2
1 6 1 1 2 4 2 2 ### 2 1 3 3
1 6 1 1 3 4 1 1 2 1 1 2 2
1 1 1 1 2 3 2 1 4 3 2 4 2
1 1 1 1 2 3 1 1 3 2 1 3 3
1 2 2 1 3 3 2 1 2 1 1 2 2
1 2 4 1 1 3 1 1 2 2 1 1 4

38
A Study of Analysis of Market Strategies in Automobile Companies in India

1 1 1 2 ## 4 2 1 4 3 2 3 3
1 5 1 2 ## 4 2 1 4 3 2 3 3
1 1 1 1 3 3 1 1 1 1 1 2 2
1 6 2 1 3 3 1 2 ### 2 2 4 3
1 2 2 1 3 5 1 2 ### 1 1 1 1
1 3 2 2 2 1 1 1 3 1 1 2 2
1 5 3 1 3 3 1 1 3 2 1 3 3
1 2 1 1 2 3 1 2 ### 1 1 3 2
1 2 2 1 3 5 2 1 2 2 1 2 3
1 6 2 2 2 1 1 1 3 1 1 2 3
1 1 2 1 2 3 1 1 3 2 1 2 2
1 4 1 2 3 3 1 1 2 2 1 2 2
1 2 2 1 3 1 1 2 3 3 1 3 2
1 6 4 1 3 2 2 1 2 2 1 2 2
1 2 4 2 1 1 2 2 3 2 2 3 3
1 5 1 1 1 2 1 1 3 1 1 2 2
1 6 1 1 2 4 2 2 ### 2 1 3 3
1 6 1 1 3 4 1 1 2 1 1 2 2
1 1 1 1 2 3 2 1 4 3 2 4 2
1 6 1 1 2 3 1 1 3 2 1 3 3
1 2 2 1 3 3 2 1 2 1 1 2 2
1 1 4 1 1 3 1 1 2 2 1 1 4
1 6 1 2 ## 4 2 1 4 3 2 3 3
1 5 1 2 ## 4 2 1 4 3 2 3 3
1 1 1 1 3 3 1 1 1 1 1 2 2
1 6 2 1 3 3 1 2 ### 2 2 4 3
1 6 2 1 3 5 1 2 ### 1 1 1 1
1 3 2 2 2 1 1 1 3 1 1 2 2
1 6 3 1 3 3 1 1 3 2 1 3 3
1 2 1 1 2 3 1 2 ### 1 1 3 2
1 6 2 1 3 5 2 1 2 2 1 2 3
1 1 2 2 2 1 1 1 3 1 1 2 3
1 6 2 1 2 3 1 1 3 2 1 2 2
1 6 1 2 ## 4 2 1 4 3 2 3 3
1 1 4 1 2 3 1 1 1 1 1 2 1
1 2 2 1 1 5 1 2 2 2 1 2 1
1 2 1 1 3 4 1 1 1 3 1 3 2
1 1 4 1 2 3 1 1 1 1 1 2 1
1 6 3 2 2 3 1 1 3 3 1 3 2
1 2 2 1 2 4 1 1 4 2 1 3 1
1 2 1 1 1 3 1 1 3 3 1 3 1
1 2 4 1 2 4 1 1 1 1 1 3 2
1 1 1 1 3 1 1 2 4 2 1 2 1
1 5 4 1 2 4 1 1 1 1 1 2 1
1 1 1 1 1 4 1 1 2 1 1 4 3
1 4 4 1 2 4 1 1 1 1 1 2 1
1 6 2 1 3 3 1 2 ### 2 2 4 3
1 6 2 1 3 5 1 2 ### 1 1 1 1
1 3 2 2 2 1 1 1 3 1 1 2 2
1 6 3 1 3 3 1 1 3 2 1 3 3

38
A Study of Analysis of Market Strategies in Automobile Companies in India

1 2 1 1 2 3 1 2 ### 1 1 3 2
1 6 2 1 3 5 2 1 2 2 1 2 3
1 1 2 2 2 1 1 1 3 1 1 2 3
1 6 2 1 2 3 1 1 3 2 1 2 2
1 6 2 1 1 5 1 1 1 1 1 2 1
1 6 1 1 3 3 1 1 2 2 1 2 4
1 1 1 1 2 5 1 1 2 3 3 2 2
1 6 1 1 3 1 1 1 1 1 1 2 1
1 1 3 2 2 3 1 2 2 3 2 4 4
1 3 3 1 3 5 1 1 2 2 1 2 2
1 1 2 1 3 5 1 1 2 1 1 2 2
1 6 1 1 1 5 1 1 4 2 1 4 2
1 1 4 1 2 1 1 1 3 1 1 3 3
1 6 4 1 2 1 1 1 3 1 1 3 3
1 3 3 1 3 5 1 1 2 2 1 2 2
1 1 1 1 3 1 1 2 4 2 1 2 1
1 5 4 1 2 4 1 1 1 1 1 2 1
1 1 1 1 1 4 1 1 2 1 1 4 3
1 4 4 1 2 4 1 1 1 1 1 2 1
1 6 2 1 3 3 1 2 ### 2 2 4 3
1 6 2 1 3 5 1 2 ### 1 1 1 1
1 2 1 1 2 3 1 2 ### 1 1 3 2
1 2 2 1 3 5 2 1 2 2 1 2 3
1 1 2 2 2 1 1 1 3 1 1 2 3
1 1 2 1 2 3 1 1 3 2 1 2 2
1 4 1 2 3 3 1 1 2 2 1 2 2
1 2 2 1 3 1 1 2 3 3 1 3 2
1 6 4 1 3 2 2 1 2 2 1 2 2
1 2 4 2 1 1 2 2 3 2 2 3 3
1 5 1 1 1 2 1 1 3 1 1 2 2
1 6 1 1 2 4 2 2 ### 2 1 3 3
1 6 1 1 3 4 1 1 2 1 1 2 2
1 3 3 1 3 5 1 1 2 2 1 2 2
1 1 1 1 3 1 1 2 4 2 1 2 1
1 5 4 1 2 4 1 1 1 1 1 2 1
1 1 1 1 1 4 1 1 2 1 1 4 3
1 6 4 1 3 4 1 1 3 2 1 2 2
1 1 1 1 2 4 1 1 2 1 1 2 2

38
A Study of Analysis of Market Strategies in Automobile Companies in India

BIBLOGRAPHY

REFERANCE BOOKS:

Marketing research : Tull and Hawkins

Marketing research : A.Parasuraman,


Dhruv Grewal and R.Krishnan.

Magazines : Auto
: Overdrive

INTERNET WEBSITES : www.marutiudyog.com


www.autos.com

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