MAHINDRA FIRST CHOICE

SUMMER TRAINING REPORT

ON

Industry analysis AND development of supply chain FOR MAHINDRA FIRST CHOICE

AFTER MARKET SECTOR

MAHINDRA FIRST CHOICE

SUBMITTED ON PARTIAL FULFILLMENT OF THE REQUIREMENTS OF POST GRADUATE PROGRAMME BY NIKHIL KATIYAR Batch 2010-12 Roll No. FT-10-894 IILM Graduate School of Management Greater Noida
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MAHINDRA FIRST CHOICE

DECLARATION FORM

I hereby declare that the Project work entitled INDUSTRY ANALYSIS AND

DEVELOPMENT OF SUPPLY CHAIN FOR

MAHINDRA FIRST CHOICE

submitted by me for the Summer Internship during the Post Graduate Diploma in Management Program to Institute for Integrated Learning in Management - Graduate School of Management, Greater Noida is my own original work and has not been submitted earlier either to IILM GSM or to any other Institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier / other work done by me or others.

Place : Date : Signature of Student

Name of Student Address

: _____________________________ : _____________________________ ______________________________ ________________________________

MAHINDRA FIRST CHOICE

ACKNOWLEDGEMENT

If words are considered to be signs of gratitude then let these words convey the very same. My sincere gratitude to Mahindra First Choice for providing me an opportunity to work with Mahindra First Choice and for giving necessary direction on doing this project to the best of my abilities. I am highly indebted to Mr. Saahil Sharma, Area Manager and company mentor, who has provided me with necessary information and also the extended support out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible. I wish to express my sincere gratitude to Prof. Pranay Verma, Faculty Mentor, Mr. Abhishek Singh, Manager Placements and IILM Graduate School of Management Institute for providing me an opportunity to do my project work on INDUSTRY ANALYSIS AND DEVELOPMENT OF SUPPLY CHAIN FOR MAHINDRA FIRST CHOICE in Mahindra First Choice. I extended my heartfelt thanks to the staff of Mahindra First Choice in Meerut showroom who were really helpful to me in completing my project.

Place: Date:

MAHINDRA FIRST CHOICE

CERTIFICATE

This is to certify that Nikhil Katiyar, student of INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT Graduate School of Management has completed his project on the topic of INDUSTRY ANALYSIS AND DEVELOPMENT OF SUPPLY CHAIN FOR MAHINDRA FIRST CHOICE under the supervision and guidance of Prof. Pranay Verma, Faculty Mentor of IILM-GSM. To best of my knowledge the report is original and has not been copied or submitted anywhere else. It is an independent work done by him.

Prof. Pranay Verma

MAHINDRA FIRST CHOICE

Table of contents

S.NO.

CONTENTS
1. Declaration Form 2. Acknowledgement

PAGE NO.
2 3

3. Certificate
4. Executive Summary

4
7

5. Industry synopsis o Global aspect o Indian aspect o SWOT Analysis 6. Company synopsis
Mahindra Group Mahindra First Choice SWOT Analysis

12

o Key Executives 7. Project o Statement of Problem o Objectives of the Project

8. Methodology 9. Findings 10. Analysis o Interpretation o Pricing grid 11. Evaluation process 12. Procurement process
13. Promotional activities

18

20 21 24

30 33
36

14. Conclusion

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MAHINDRA FIRST CHOICE

15. Recommendations 16. Limitations of the project 17. References(textual/Internet)

38 39 40

MAHINDRA FIRST CHOICE

Executive Summary
A pre-owned car or a second hand cars, is a car that has previously been used by one or more owners. Used cars are sold through a variety of outlets, including franchises, independent car dealers, rental car companies, leasing offices, auctions, and private party sales. The Indian Pre-owned car market was dominated by unauthorized small-time brokers, and was characterized by lack of transparency, disorganized and choice. The market for used cars already equals the market for new ones, and its growing rapidlybut only about 10 percent of car sales take place in the organized sector.

Mahindra First Choice Wheels came in existence with the idea that buying of a used car should be as rewarding as buying a new car. Mahindra First Choice Wheels ltd. sets about to professionally organize the pre-owned car industry in India so that customers can trust that they are getting a quality vehicle. Mahindra First Choice Wheels Ltd is India's largest multi-brand pre-owned car company which believes in selling high quality pre-owned cars to its customers with hassle free documentation and car transfers. Mahindra First Choice Wheels has 125 outlets across 80 cities in India. The company plans to expand this number to 300 outlets in the next three years. This implies that customers will soon be able to choose from a wide range of certified pre-owned cars throughout India, including the metros and tier-2 towns and cities.

The summer internship project entitled INDUSTRY ANALYSIS AND DEVELOPMENT

OF SUPPLY CHAIN FOR MAHINDRA FIRST CHOICE is undertaken under the

guidance of Mr. Saahil Sharma, the company guide. The project included three assignments:

MAHINDRA FIRST CHOICE First: Role: Studying the industry of pre-owned car industry.

o Methodology: survey, this included visiting different dealers of pre-owned cars, both authorized and unauthorized, as a dummy customer. o Objective: To understand the pattern of price quotation, other services provided by the dealers like warranty, servicing, finance and paperwork. o Dated: this work was done in 11days i.e. from 05may to 15may.

Second: - Role: Collecting procurement leads in Meerut and closing them. - Methodology: I visited the market area in Meerut, talked to shop owners to collect procurement leads. - Objective: To prepare a database of prospective clients for procurement.

Third: - Role: Collecting the contacts of drivers and garage owners in Meerut. - Methodology: survey, visited garage, traveling agencies, taxi stands and residential areas. - Objective: To prepare a database to generate procurement leads for future use. - Dated: the second and third assignments were carried out together in 45days, i.e. from 17may to 30june.

MAHINDRA FIRST CHOICE

INDUSTRY SYNOPSIS
Second hand or used cars are an integral part of the car market. People prefer purchasing a second hand car because it proves to be more economical as compared to buying a brand new car. The depreciation is lesser and car financing too can be obtained easily.

GLOBAL ASPECT
In U.S. the used vehicle industry is more than double that of the new car market. An annual sale of pre-owned car in U.S. is nearly $370 billion. In 2005, about 44 million used cars were sold in the U.S. While nearly 17 million new cars sold every year. The used vehicle market is larger than other large retail sectors, such as the school and office products market ($206 billion in estimated annual sales) and the home improvement market ($291 billion in estimated annual sales). Used car sales for 2010 were expected to be 36.7 million, according to information released by TrueCars.com. The new car pricing website, which also closely monitors used car buying, said that number tracks about 3.4% ahead of 2009's total of almost 35.5 million used cars. Used car sales are only predicted to grow about 2.2% in 2011 to 37.5 million. That's not because consumers will be buying less vehicles. It just means pent-up demand is going to be satisfied with new car purchases.

GROWTH RATE OF USED CAR MARKET

38 37.5 37 36.5 36 35.5 35 34.5 1 2 3 Series1

MAHINDRA FIRST CHOICE

INDIAN ASPECT

A used car can be much cheaper than its new counterpart. The demand for the used car market in India per year is 1.4 million cars. Only 10 per cent of the Indian used car market is organized.

organized used car market automobile vendors direct by owner

Industry experts expect 50 per cent of the used cars sales to be brought under organized car market over a period of 3 years. The second hand market in India today has certified used car outlets screened by car makers. Some of the well known certified used car dealers in the Indian market are Maruti True Value, Honda Auto Terrace, Ford Assured, Toyota U Trust, Hyundai Advantage, Mahindra and Mahindra's First Choice.

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MAHINDRA FIRST CHOICE

SWOT ANALYSIS

STRENGTH Used car proves to be more economical as compared to buying a brand new car. Faith is increasing in market with entry of authorized dealers.

WEAKNESS Ownership of bigger part of used car market is with unorganized dealers. Untrustworthy paperwork and documentation. There are less number of owned workshops Question mark on originality of car parts

OPPORTUNITY

THREATS Rising small segment cars market. Increasing number of competitors

Used car sales are predicted to grow about 2.2% in 2011.

Supply is less than demand. Increase in disposable income may possibly make people to purchase new cars instead used cars.

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MAHINDRA FIRST CHOICE

COMPANY SYNOPSIS

MAHINDRA GROUP
The Mahindra Group is a US $12.5 billion, Indian multinational conglomerate company headquartered at Mahindra Towers in Mumbai, India. The group has more than 119,900 employees in over 100 countries across the globe. Established in 1945, the Group has completed over 60 years of leadership. Initially set up to manufacture general-purpose utility vehicles, Mahindra & Mahindra (M&M) was first known for assembly of the iconic Jeep in India. The company later branched out into manufacture of light commercial vehicles and agricultural tractors and rapidly grew from being a manufacturer of army vehicles and tractors to an automobile major with a growing global appetite. The group now has a presence in aerospace, agribusiness, aftermarket, automotive, components, construction equipment, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. It is considered to be one of the most reputable Indian industrial houses with market leadership in utility vehicles as well as tractors in India.

The group has following subsidiaries: Mahindra & Mahindra Mahindra Aerospace Mahindra Engineering Services Mahindra & Mahindra Financial Services Limited Mahindra Systech Tech Mahindra Mahindra Satyam Mahindra Lifespace Developers Mahindra Ugine Steel Company 12

MAHINDRA FIRST CHOICE Mahindra has recently entered the two-wheeler segment with the acquisition of the business assets of Pune based Kinetic Motor Company Limited. Mahindra & Mahindra groups added a new business vertical After-Market Sector for taking care of growing population of vehicles in India (6 million cars currently, expected to grow to 17 million by 2015). The company realiased there is a vast untapped potential in the after-market space covering multi-brand pre-owned vehicles, servicing and spares which support this business ecosystem. This will create in the organized sector a business ecosystem which replicates the existing ecosystem for new vehicles. The Business Units in the After-Market Sector includes :

Mahindra First Choice Wheels Ltd. - This works in Sale & Purchase of Pre-owned Cars. Mahindra First Choice Services Ltd. - This works in Multi-brand Service Chain Mahindra Spares Business - This works in both Mahindra & nonMahindra spares.

Mahindra First Choice Wheels:

Mahindra First Choice Wheels is the countrys preferred pre-owned car mart and is Indias only organized multi-brand player. Currently Mahindra First Choice Ltd has 136 Stores and 10 superstores in 82 leading cities of the country. The company plans to expand this number to 300 outlets in the next three years. This implies that customers will soon be able to choose from a wide range of certified pre-owned cars throughout India, including the metros and tier-2 towns and cities.

Mahindra First Choice Wheels Pre-owned Cars are retailed in all the leading cities like Mumbai, Pune, Bangalore, Delhi, Chennai, Ahmedabad, Jammu, Gurgaon, Rewari,

Sirsa, Panchkula, Mohali, Jalandhar, Ludhiana, Amritsar, Hoshiarpur, Pathankot, Patiala, 13

MAHINDRA FIRST CHOICE Noida, Agra, Allahabad, Lucknow, Gorakhpur, Dehradun, Jaipur, Baroda, Porbander, Bhuj, Thane, Nasik, Ratnagiri, Ahmednagar, Nagpur, Bhopal, Satna, Jabalpur, Raipur, Bhillai, Korba, Raigarh, Bilaspur, Kolkata, Howrah, Siliguri, Asansol, Guwahati, Bhubaneswar, Cuttuck, Balasore, Ranchi, Dhanbad, Patna, Mohania, Coimbatore, Hyderabad, Warangal, Karimnagar, Cochin, Trivandrum, Perinthelmanna, Belgaum & many more cities.

Mahindra First Choice Wheels Ltd. launched their 24x7 road side assistance program in association with MyTVS.

Mahindra First Choice Wheels Ltd is Indias multi-branded pre-owned car company that has set a new target to sell around one lakh used cars by 2014, stated by Ashesh Dhar, vice president (operations).

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MAHINDRA FIRST CHOICE

Mahindra First Choice Wheels Propositions:

o Widest Choice - In line with its objective of providing a wide choice of cars to consumers, Mahindra First Choice Wheels pioneered the concept of offering a wide range of cars across brands and segments under one roof. o Warranty - With the Mahindra First Choice certification, you can be .completely assured of a hassle-free ownership experience. We understand that a maintenance cost is one of the major causes of concern for a pre-owned car buyer. In order to provide you with the ultimate peace of mind, Mahindra First Choice Wheels has pioneered the concept of warranty on pre-owned cars. The warranty covers the cars engine and transmission which form the heart of your car. o Transparency & Trust - Every certified vehicle sold by Mahindra First Choice Wheels undergoes rigorous 118 points quality checks and comes with legitimate documentation. Mahindra First Choice Wheels doesnt sell flood or structural damage cars. The cars are refurbished as per quality checks to give consistent performance.

OTHER SERVICES Other services available at a Mahindra First Choice Wheels stores include:

Sell your old car to get a fabulous price and quick payment Park & Sell option Finance on pre-owned cars Assistance for correctness and legal validation of document Insurance on pre-owned cars Supply & fitment of a wide range of car accessories.

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MAHINDRA FIRST CHOICE

SWOT ANALYSIS

STRENGTH

WEAKNESS The product and services offered are more

Indias multi-branded pre-owned car company

costly than competitors.

Warranty terms not simple to understand

Has good reach with 136 stores and 10 super stores across 80 cities The company offers RSA which gives it a competitive advantage Almost all outlets are owner

Coverage area is less. process.

Weak certification

driven

which results in the presence of higher targets. Variety of services like RSA, warranty, RC, Finance and complete documentation.

OPPORTUNITY

THREATS Increasing number of competitors.

Used car sales in 2010 grew by 20 and are predicted to grow about 15% in 2011in India.

Increasing disposable income may

lead customer to purchase new cars instead used cars.

Working upon the servicing

sector

would also results in better future Company planning to increase number of

The coverage of unorganized market in used car sector.

outlets in India to 300 by 2012.

There is possibility of opening of the

superstore by the company in the near

future which would prove beneficial

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MAHINDRA FIRST CHOICE

KEY EXECUTIVE

Mr. Anand G. Mahindra Vice Chairman and Managing Director Mahindra First Choice Wheels Ltd.
Mr. Anand G. Mahindra, Vice Chairman and Managing Director of Mahindra & Mahindra Ltd. one of Indias largest and most respected business houses - graduated from Harvard College, Cambridge, Massachusetts, Magna cum Laude. In 1981 he secured an MBA degree from the Harvard Business School, Boston, Massachusetts. He returned to India that year and joined Mahindra Ugine Steel Company Ltd (MUSCO), the countrys foremost producer of specialty steels, as Executive Assistant to the Finance Director. In 1989 he was appointed President and Deputy Managing Director of the company. During his stint at MUSCO, he initiated the Mahindra Groups diversification into the new business areas of real estate development and hospitality management.

In the summer of 1991, he was appointed Deputy Managing Director of Mahindra & Mahindra Ltd., the countrys dominant producer of off-road vehicles and agricultural tractors. He has since been engaged in a comprehensive change program in Mahindra & Mahindra Ltd. to make the company an efficient and aggressive competitor in the new liberalized economic environment in India. In April 1997, he was appointed Managing Director of Mahindra & Mahindra Ltd and in January 2003 given the additional responsibility of Vice Chairman. Mr. Mahindra was a co-promoter of Kotak Mahindra Finance Ltd., which in 2003 was converted into a bank. Kotak Mahindra Bank is one of the foremost private sector banks today. 17

MAHINDRA FIRST CHOICE

PROJECT
INDUSTRY ANALYSIS AND DEVELOPMENT OF SUPPLY CHAIN OR MAHINDRA FIRST CHOICE

Statement of Problem:
Mahindra first choice had opened an outlet in Meerut in January hence wanted to run marketing activities and create a database of contacts for supporting the business in future.

Objectives of the project:

To understand the working of After Market Sector for cars. To know how Mahindra First Choice operates in AFTER MARKET SECTOR for cars in India. Industry analysis to understand difference in working of all organized and unorganized players in pre-owned car market in India. The evaluation and procurement process in Mahindra First Choice. The criteria needed to meet to procure a used car. To learn how to develop a customer relationship, contacts and convince him/her to deal with the company. To know the procedure followed by the customer to book the car and take delivery of the car. Different terms and condition that customer needs to follow warranty norms. To prepare a pricing grid that tells the current pricing trend of used cars.

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MAHINDRA FIRST CHOICE

To study the different kinds of media used by the Mahindra First Choice to increase the business of its existing outlets. Such as Newspaper Website Call centre Other promotion tools (banners, holdings, links etc.)

To study the different tools used by the company to maintain proper records of the procurement and sales by the outlets. Such as Sales tracker Buyer leads

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MAHINDRA FIRST CHOICE

Methodology
The project was in two parts: First: o Problem definition: carry out industry analysis to understand difference in working of all organized and unorganized players in pre-owned car market in India. Also prepare a pricing grid. o Methodology: survey, this included visiting and having personal interaction with different dealers of pre-owned cars, both authorized and unauthorized, as a dummy customer. o Research design: sample size 18 unauthorized showrooms and 14 authorized showrooms. Location Noida, Sahibabad, Ghaziabad, Meerut and Karol Bagh. Second: Problem definition: Collecting procurement leads in Meerut and closing them. Methodology: Personal interaction, I visited the various market areas in Meerut, interviewed shop owners to collect procurement leads. Third: Location: Meerut

o Problem definition: Collecting the contacts of drivers and garage owners in

Meerut.

o Methodology: Personal interaction, I visited garages, traveling agencies, taxi

stands and residential areas and interviewed them.

o Location: Meerut.

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MAHINDRA FIRST CHOICE

FINDINGS:
All result is based on primary data collected by direct interaction. Because of being based on primary data the findings are more helpful in knowing the genuine unbiased facts and figures. o The survey I carried out for doing Industry analysis had a sample size of 18 unauthorized showrooms and 14 authorized showrooms and the locations where did this survey are Noida, Sahibabad, Ghaziabad, Meerut and Karol Bagh. UNAUTHORIZED SHOWROOMS

SHOWROOMS
Inaam motors Maruti motors Noida motors

LOCATIONS Noida
Noida Noida Sahibabad Sahibabad

MSD Auto Plus Kumars Car World Om Motors Sunny motors RNZ Malhotra motors Shri Balaji Motors Metro Motors Guddu Motors Jeet Motors Baba Motors Mahima Motors Balaji Motors JVG Motors Vinayak Motors Car Point

Ghaziabad Karol Bagh

Karol Bagh

Kaiser ganj, Meerut

Kaiser ganj, Meerut Kaiser ganj, Meerut Kaiser ganj, Meerut Kaiser ganj, Meerut Kaiser ganj, Meerut

Mohan Puri, Meerut

Mohan Puri, Meerut Mohan Puri, Meerut Mohan Puri, Meerut

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MAHINDRA FIRST CHOICE

AUTHORIZED SHOWROOMS
SHOWROOM
Ford showroom: south city Ford Tata Motors Maruti True value: Rohan MotorasLtd Volkswagen Noida Mahindra Koncept Automobiles Pvt. Ltd.

LOCATIONS
Noida Noida Noida Noida Noida

Hyundai showroom
Mahindra First Choice: Shiva Motors Maruti True Value : Motorcraft Honda showroom Maruti True Value : Regent Autolinks Pvt. Ltd. Hyundai Showroom: Dream Hyundai

Sahibabad Sahibabad Sahibabad Sahibabad Ghaziabad Ghaziabad Ghaziabad sports complex, Meerut sports complex, Meerut

Mahindra Showroom Maruti True Value Mahindra first choice

I found various attributes that effect the brand image of the company and hence its market. Following are the points that affect the customer footfalls in showrooms: 1. Services: the offers and added services offered by the showroom attract the customers to them and also retain them. These services include: Warranty Finance Servicing Paperwork test-drive discounts or gifts

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MAHINDRA FIRST CHOICE 2. Customer handling: the best way to retain as customer is to make him/her to feel that he/she is special for you. This can be done by implementing following points: Asking for water/tea Follow ups Noting details Questionnaire

3. Sales executive skills: Sales executive is the person that interacts with the customer and the representative of the showroom. Hence he require skills like:

o Presentable o Helping o Understanding

4. Location: the convenience in finding and reaching the showroom also decides the success of the showroom business. 5. Infrastructure: this satisfies the esteem need of the customer of associated with as big company.

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MAHINDRA FIRST CHOICE

ANALYSIS:
CUSTOMER HANDLING * * * ** ** 0 ** 0 * * * * * * 0 0 0 0 *** **** *** **** ** ** *** *** **** *** ***

SHOWROOMS
Inaam motors Maruti motors Noida motors

SERVICES * * ** *** ** * ** * ** ** ** * * ** * * * * *** *** *** *** *** *** *** *** ** *** **

Sales executive skills

0 * * ** ** 0 ** * * * * * * * * * * * ** **** *** ***** ** ** *** *** * *** ***

Location
** *** *** *** *** * *** ** * * * * * * * * * * ** *** *** *** *** ** **** *** ***** *** ***

Infrastructure
0 * * *** ** 0 * 0 * * * * * * * * * * **** ***** **** ***** **** *** ***** **** ***** *** ****

Overall
* *1/2 *1/2 *** ** ** * * * * * * * * * * * *** **** *** **** *** *** **** *** *** *** ***

MSD Auto Plus Kumars Car World Om Motors Sunny motors RNZ Malhotra motors Shri Balaji Motors Metro Motors Guddu Motors Jeet Motors Baba Motors Mahima Motors Balaji Motors JVG Motors Vinayak Motors Car Point
Ford showroom: south city Ford Tata Motors, Noida Maruti True value: Rohan Motor Ltd Volkswagen Noida Mahindra Koncept Automobiles Pvt. Ltd.

Hyundai showroom
Mahindra First Choice: Shiva Motors Maruti True Value : Motorcraft Honda showroom Maruti True Value : Regent Autolinks Pvt. Ltd. Hyundai Showroom: Dream Note: scale is 1-5 *.

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MAHINDRA FIRST CHOICE

Overall Rating
Hyundai Showroom: Dream Maruti True Value : Regent Autolinks Pvt. Ltd. Honda showroom Maruti True Value : Motorcraft Mahindra First Choice: Shiva Motors Hyundai showroom Mahindra Koncept Automobiles Pvt. Ltd. Volkswagen Noida Maruti True value: Rohan Motor Ltd Tata Motors, Noida Ford showroom: south city Ford

Car Point Vinayak Motors JVG Motors Balaji Motors Mahima Motors Baba Motors Jeet Motors Guddu Motors Metro Motors Shri Balaji Motors RNZ Malhotra motors Sunny motors Om Motors Kumars Car World MSD Auto Plus Noida motors Maruti motors Inaam motors Overall

0.5

1.5

2.5

3.5

4.5

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MAHINDRA FIRST CHOICE

Interpretation:
According to the ratings based on the survey, among the unauthorized dealers the MSD Auto Plus is best in business because they follow an organized way of business. Following points are their plus points:

o They have their shop in galaxy mall in Sahibabad which gives it an advantage of
location.

o They also have large number of options ranging from small car to luxury cars. o They also keep details of customer and follow up them to make sure that the
prospect gets converted into as deal.

o Most of the dealers not even take interest in taking the contact details of the
customers walking in.

o The sales persons in these shops dont take interest in retaining the customer and
closing the deal.

Among the authorized dealers the Mahindra First Choice: Shiva Motors, Volkswagen Noida n Tata Motors and Noida are the best. Following points are their plus points:

o They have vast range of cars ranging from small segment cars to luxury cars to
SUVs.

o They provide services like finance, warranty, Warranty, Finance and Servicing. o Genuine documents. o Non-accidental car in best condition. o Keeps follow-up of their customers. o Have good infrastructure. o Sales executive attend their customers sincerely and follow the customers till the
deal closes.

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MAHINDRA FIRST CHOICE

PRICING GRID

2010 Maruti Alto Lxi Maruti Wagon R Lx Maruti Wagon R Lxi Maruti zen Lxi Maruti Zen VXI Maruti Swift Lxi Maruti Swift Vxi Maruti Swift Dzire Vxi Maruti Swift Dzire Ldi Maruti Esteem Lxi Maruti Esteem Vxi Hyundai Santro XE AC Hyundai Santro GL Hyundai i10 TATA INDICA DLG TURBO TATA INDIGO LS TATA INDIGO dicor lx TATA SAFARI LX 4/2 TATA PALIO 1.2 ELPS HONDA CITY 1.3 EXI/DX HONDA CITY 1.5 DX/EXI HONDA ACCORD 2.4 MT NA 2.2 2.6 NA NA 3.5 3.6 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

2009 1.90 2.10 2.50 NA NA 3.20 3.30 4.00 4.35 NA NA NA 2.30 3.10 NA NA NA NA NA NA NA 12.5

2008 1.80 1.90 2.30 NA NA 2.70 3.00 3.80 3.85 NA NA NA 2.10 2.85 1.80 2.00 2.25 3.75 NA NA NA NA

2007 1.65 1.75 2.00 NA NA 2.25 2.70 NA NA 1.90 1.95 1.40 2.00 2.50 1.60 1.75 2.00 3,30 1.60 NA NA NA

2006 1.50 1.65 1.80/1.70 1.60 NA 2.10 2.25 NA NA 1.60 1.65 1.30 NA NA 1.35 1.45 1.60 3.00 1.25 NA NA NA

2005 1.40 1.45 1.60 1.50 1.60 1.90 2.10 NA NA 1.40 1.45 1.20 NA NA 1.10 1.20 NA 2.40 0.95 NA NA 6.25

2004 1.30 1.30 1.45 1.35 1.45 NA NA NA NA 1.25 1.35 1.10 NA NA NA 1.00 NA 2.00 0.75 NA NA 5.75

2003 1.20 1.15 1.30 1.25 1.30 NA NA NA NA 1.05 1.10 0.00 NA NA NA 0.75 NA 1.50 0.50 NA NA 4.40

2002 NA 1.00 1.15 1.10 1.15 NA NA NA NA 0.90 0.95 NA NA NA NA NA NA 1.25 0.35 1.70 1.90 5.3

2001 NA 0.90 1.00 0.00 0.90 NA NA NA NA NA 0.80 NA NA NA NA NA NA NA NA 1.50 1.40 NA

Note: the data is in lacks.

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MAHINDRA FIRST CHOICE

INTERPRETATION:

45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Series1

o Hence it is visible from the result of analysis that the rate of depreciation in case of small segment cars is less than that in the case of the luxury cars. o The cars mostly in demand are Maruti Alto, Maruti Swift and Hyundai Santro, Honda City.

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MAHINDRA FIRST CHOICE

Basis of pricing

Pricing of the old car depends upon various factors like:

Make and model of the car Mileage of the car Owner serial number Add-ons in the car Registration number of the car Demand of the model in the market Condition of the car Papers work

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MAHINDRA FIRST CHOICE

SECOND ASSIGNMENT:

After completing the first phase of the training, I was allotted the Mahindra first choice showroom in Meerut for reporting and going through further training. Here I was assigned new task for next part of the training that was to generate procurement leads and collect contacts of the garage owners and the drivers. I was guided by my industry mentor Mr. Saahil Sharma, Mr. Neeraj Luthara and Mr. Danish, the employee at showroom in Meerut.

PROJECT PROBLEM:

The objectives of this phase were: o To understand the procurement process. o To know the evaluation process of the car. o To collect contacts of garage owners and drivers. o To understand the criteria to match for procurement of a car.

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MAHINDRA FIRST CHOICE

FINDINGS:
EVALUATION PROCESS AT MAHINDRA FIRST CHOICE

SHOWROOMS:
o After getting a procurement lead, a meeting is fixed with client. Sometimes

there are walking in the showrooms which are entertained at same time.
o The Mahindra First Choice evaluator will check the documents first to start the process. This includes the cars registration book (RC), insurance policy, service manual, detail of loan or NOC hypothecation from any financial institution, identity proof & dealer invoice.

o Then he will check external condition of the car that includes - paint and body for accidental signs to check for previous body repair and frame or flood damage. Paint and body for paint lines, overspray, body putty, dents and scratches. o Then he check Interior and exterior condition, mileage, age, ownership and accessories.

o Then the evaluator will take a test drive to check the technical & mechanical condition of the car.

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MAHINDRA FIRST CHOICE

The points the evaluator checks while evaluation process are:

o Type of tires Radial tires worn out tires Ruptured tire

o Type of structural damages Roof damages Fender damages Wind screen damage Identify scratches 1st box, 2nd box and 3rd box damages

o Identify rust parts in old cars Pillars Running board

o Type of paint defects Shade change in the car paint Dark spots Paint breakage Pin holes Paint peel off

o Identify painted parts o Identify gas kit CNG, LPG We can identify painted parts by tapping that area

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MAHINDRA FIRST CHOICE o Type of engines o AT/MT Automatic Transmission Manual Transmission Petrol engine Diesel engine CNG kit LPG kit

o Engine compression problems o Suspension problems o Problems related cooling system o Cover note and insurance papers o NCB(No Claim Bonus) process o How to identify accidental cars Spot welding Shocker ceiling

After evaluation the evaluator will offer the best price, which will be valid for 7 days.

Now once person decide to sell his/her car to Mahindra First Choice Wheels, concerned person will collect copies of all relevant documents & process for payment. If car is hypothecated with finance company, it cant be sold until full loan amount is paid back & NOC received.

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MAHINDRA FIRST CHOICE

After completing the process of procurement of the car, Certification of the used cars is done by an automobile engineer. The car normally will be checked the on the parameters of 118 pre determined quality checks.

There are some norms decided by the company which every showroom needs to follow. Some of the norms are as follows: o Mahindra First Choice does not deals in cars with 3rd owner or more. o The cars must be non-accidental. o Papers should be genuine and complete. o Company does not give any warranty on the CNG or LPG fitted cars. o For petrol engine cars which has ran over 70,000 and for diesel engine cars
which has ran over 65,000 the company does not gives warranty.

o Company will not provide warranty for the cars which have run more than 7
years.

o Certification of every car is necessary.

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Promotional activities by Mahindra First Choice:

In todays scenario promotion through media is necessary to dominate any kind of market. A Mahindra First Choice showroom promotes the sales in its area. o To increase the sales company gives advertisement of its dealers every Sunday through newspaper. o Company also works on promotion by its website through which a user can access any of the stock available in the showroom. o Company also provides call centre leads to the different showrooms. o Company also gives holdings, banners etc. to the showroom against the payment of the fee they charge. o The showroom also installs Mahindra First Choice canopies in malls and other important locations.

Software used at Mahindra First Choice showrooms:

There are two tools that are used at every showroom. These are following: o Sales tracker sheet: Every executive has to fill up a record of sales made by him in the sales tracker sheet provided by his outlet. o Procurement tracker sheet: Every showroom has to maintain a Procurement tracker sheet also known as Stock sheet. This contains the details of leads that which lead were by field work, which was a walking, which was a reference etc. o Loan calculator.

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Conclusion

From the data collected by field work and the interpretation based on its analysis, I make following conclusion: o With the entry of the organized market in the used car segment the customers have started to incline towards the used cars. The organized market has given the customers a faith in dealing in this sector. But the companies operating in organized market needs to open more showrooms to increase their reach in the markets as bigger market share still lies with unorganized market. o The important factor affecting the business are: location of showroom services offered follow ups contacts workshop o Even though the number of unorganized shops is way more than that of organized shops the business is not of that scale to match that of the organized shop because of lack of transparency and quality of product.

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Recommendation
o Organized showrooms have to increase the number of showrooms in order to cover the more target customers. o Unorganized dealers have to work upon their infrastructure and other services, in order to stand the competition by organized sector and quality of product and services. o Mahindra First Choice needs to open more workshops in order to serve customer in the better way. It would be beneficial for the area dealer in order to locate the customer. o The showroom dealers should implement incentive and target system against the sales made by the executives. In order to implement an aggressive marketing strategy. Company needs to focus on this area too because it is a very crucial factor as far as employee motivation is concerned. o The pre- owned car market should implement a good marketing plan so that the market share and business can be grown.

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Limitations of the project

Analysis done on the basis of the personal visits the showrooms available at
Noida, Sahibabad, Ghaziabad, Meerut and Karol Bagh hence the sample size is limited to study so our project report revolves around that area only.

Persons available at the dealers end dont disclose the true facts. No technical tool used in our survey report as we were supposed to directly
interact with the executives as a dummy customer.

Procurement training requires a considerable amount of time for us to

understand completely. But the time period for our procurement training during our internship was not sufficient.

We could not get access to the full data because we were not allowed to work
upon the dealership.

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References
The following are the references which helped in the progress of my project analysis:-

TEXTUAL REFERENCES
Written notes provided by the company officials Brochure collected from different showroom Data collected from different workshops

INTERNET REFERENCES
Mahindrafirstchoice.com Google.com

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