INTRODUCTION

Perhaps the most distinctive skill of professional marketers

is their ability to create, maintain, protect, and enhance brands.

Branding is the art and cornerstone of marketing. The American

Marketing Association defines a brand as: a name, term, sign,

symbol, or design, or a combination of them, intended to identify

the goods or services of one seller or group of sellers and to

differentiate them from those of competitors. Thus a brand

denitrifies the seller or maker.

“What distinguished a brand from its unbranded

commodity counterparts is the consumer’s perceptions and

feelings about the product’s commodity counterparts is the

consumer’s perceptions and feelings about the product’s

attributed and how they perform. Ultimately, a brand resides in

the minds of consumers. A brand can be better positioned by a

associating its name with desirable benefits.

A brand is much more than a name, logo, colors, a tagline,

or symbol . These are marketing tools tactics. A brand is

essentially a marketer’s promise to deliver a specific set of

feature, benefits and services consistently to the buyers. The

marketer must establish a mission for the brand and a vision of

what the brand must be and do.

Brand nodding occur when customers experience the

company as delivering on its benefit promise. The fact is that

brands are not built by advertising but by the brand experience.

Brands vary in the amount of power and value they have in the

marketplace. At one extreme are brands that are not known buy

must buyers then there are brands for which buyers have a fairly

high degree of brand awareness. Beyond this are brands with a

high degree of brand acceptability.

We define brand equity as the positive differential effect

that knowing the brand name has on customer response to the

product or service. Brand equity results in customers showing a

preference for one product over another when they are basically

identical. The extent to which customers are willing to pay more

for the particular brand is measure of brand equity.

A brand needs to be carefully managed a so that its equity

does not depreciate. This requires maintaining or improving

brand awareness, perceived quality and functionality, and

positive associations. These tasks require continuous R and D

investment, skillful advertising, and excellent trade and

consumer service.

IMPORTENCE OF THE STUDY

The motive of the any company is to generally acquire

larger market share high % of sales the Industry, This could be

only achieved by building a higher % of brand loyal customers.

Any company can survive through there is a stiff

computational the market if its has brand loyal customer. Today

many major companies in the market if its has brand loyal

customers. To day many major companies in the market try to

maintain and improve there branded equity. With out creating a

proper Brand awareness they cannot build brand image.

Strong brands help build the corporate image and also by

making it eager for the companies launch new brands. Today

brands are treated, as major enduring assets of a company-more

over brand equity are major contributor to customer equity. This

all can happen only there is proper brand awareness.

The light four wheeler industry has been expanding rapidly

are gone the day when possessing a small and mid-size cars was

seen as a luxury. Now days it is viewed s a mere necessity.

SCOPE OF THE STUDY

The overall scope of the present study considers all the

variables and factors that have major impact over the customers

in considering particular brands. This especially included how a

customer regally evaluate recognizes the brand and what

position particular brand occupies in the customer mind.

This includes how a customer gets attracted towards the

brands and what makes a brand highly significant over their

competitive brand. The study includes how hand awareness

among potential customers can be maintained and improves.

The project has been done in Visakhapatnam city only. The

survey was confined only to Hyundai customers to presently

posses only Santro. The survey was especially focused on

existing Santro owners for finding how they are influenced by the

brand and what made them aware of the brand. After the

survey was done the data was analyzed and also relevant

suggesting were made in order to improve its brand awareness

towards Santro

METHODOLOGY OF THE STUDY

The study is conducted empirically using both primary and

secondary data.

Using a well-structured Questionnaire provided by the

company collects primary data. Around 100 potential customers

were surveyed to understand the customer’s attitude in

evaluating the after soled services rendered by AYS Automobiles

Pvt. Ltd., All the persons interviewed were in the age group

above 25 years. It has been deliberately decoded to conduct the

survey among this age group because they are the people who

are generally looking ahead for the purchase of a four-wheeler

apart from the existing two-wheeler. Many of these persons

interested are either businessmen or professionals; few of them

are corporate managers also.

The secondary data is collected from AYS Hyundai ltd. By

going through their corporate records, brochures and annual

reports of the company along with their newsletters were used to

substantiate the information.

The details about the four-wheeler market are collected

from a few specialized magazines like Auto India etc.

SOURCES OF DATA:

The data has been collected from both primary and

secondary sources, to get information regarding the organization

and products.

PRIMARY DATA:

Primary data has been collected through questionnaires.

The questionnaire was mostly related to the brand awareness

towards Santro of the customers on different feature such as the

model, price, effectiveness of the brand etc. Provided by

Hyundai motors ltd.

SECONDORY DATA:

Secondary data has been taken from bellow sources:

1. Reports

2. Pamphlets

3. Advertisement

4. Customer database

5. Newspapers

6. Internet

SAMPLING:

Out of few lakes of Hyundai customers spread all over India,

the customers of Hyundai motors Ltd., Visakhapatnam city only

are taken as target population for the study.

SAMPLESIZE:

The sample size of 100 is selected from the database of the

company. The study requires on in depth survey and teen

observation in collecting data regarding the brand awareness

levels of Hyundai customers.

SAMPLING TECHINIQUE:

Only simple random sampling technique is adopted in

selection the sample. In this technique, each and every unit of

the population has on equal opportunity of being selected in the

sample

DATA COLLECTION PROCESS:

Based on need and objectives ,types of data required for

study and other sources of data are identified.

Data was collected with the help of the questionnaires

OBJECTIVES

The study has been conducted with the following objectives

in mind:

1. To know how brand awareness made customer to purchase

product (Hyundai car)

2. What factors and variables of brand influence them to

purchase.

3. To know what position does the brands has in the minds of

customers.

4. To know how they became aware of the brand (Santro)

Data

Primary Data

Obseration

Questionnaire

Secondary Data

Inside the Organization

News Letters Documents

Outside the Organization Libraries,

Magazines etc

5. To know level of satisfaction about the brand awareness

( Santro) offered by Hyundai.

6. To find out the market potential for Hyundai cars ( Santro).

7. To know how maintain and improve brand awareness build

brand loyalty.

LIMITATIONS OF THE STUDY

Even though the project has been done without most car, it

suffers from the following limitations.

1. Due to lack of time all customers, could not be contracted.

2. The study has been restricted to Visakhapatnam city only.

3. As the project is a simple sample study and is confined to

100 customers only, if may or may not pictures the entire

customer feelings.

4. The awareness levels of the customers may change from

time to time and so there is a possibility of changes in the

research results.

Few customers refused to respond or could not respond

appropriately due to Lack of time, Ignorance etc.,

INDUSTRY PROFILE

In 1769, a French engineer CAPTIN NICHOLAS built the first

load the vehicle propelled by its own power. It was a three-

wheeler, four-seatwork vehicle fitted with steam engine. It

attained a peed of about 21/2 M.P.H. for 15 minute. In 1880.

German & French efforts developed of this vehicle.

In 1885, Benz in Germany built a tricycle propelled an

internal combustion engine. In 1885-86, GOTTLEEF

DAIMLETpatented an internal combustion engine. In 1895,

CHARLES E.DURYES and ELWOOD and J.HAYNES in America

developed experimental automobile. In this year PANCHARD and

LEVAMOR in France also developed a car with minor executions

incorporated the chief features of the automobile as we know it

today. In 1890-95, the European designers were also active in

the development of automobile.

In 1900. The design of the automobile so improved that it

awakened the public to the fact that it was new form of

transportation.

In 1906, many of the great names around which the world’s

largest manufacturing industry was to be built in America had

already begin to manufacture the automobile vehicle, Packard,

Auto car –Oldsmobile, white, bulk overland, ford, cadillan-c etc.,

all these names were, motor vehicles before 1905. Pierce-arrow,

locomotive, Maxwell, franking and peerless were also important

at that time in the technical and commercial development of the

motor vehicle.

In 1920, there was a gradual change and refinement in

automobile design. It was clear by the spark ignition gasoline

engine, which was the power plant of the modern motor; vehicle

water-cooled engine was almost universal. The sliding gear

transmission had established itself as predominant. The puppet

value was used in almost every engine. Engines were all located

of the chassis.

In this period the major developments were made in every

carry features. The designers tried to produce a vehicle which

will function at all times under all conditions and which were

comfortable to ride and easy to operate. Increased life of tyres, ,

independent, front wheel suspension, four wheeler hydraulic

brakes, high compressions ratio, higher power, use of new

materials and hundreds of other changes have been made.

In recent years, the passenger car’s chassis construction

has been forced to shape itself and redesigned bodies. While in

the field of truck design , body chassis problems now get

simultaneous consideration to automatic transmission and many

other new feature are in today’s car. The diesel engine was

invented only a few years after the spark ignition engine cars

came into existence. Cars provided the facility to the owners

that are safe, easier to drive, more reliable and comfortable.

HISTORY OF AUTOMOBILES IN WORLD SCENARIO

In 1769, a French Engineer Captain Nicholas built the first

load vehicle propelled by its own power. It was a three-wheeler

four-seater vehicle fitted with steam engine. It attained a speed

of about 2 Y2 MPH for 15 minutes.

In 1880, German & French efforts developed an internal

combustion engine vehicle. The present day automobile is the

development of this vehicle.

In 1885, Bent in Germany built a tricycle propelled by an

internal combustion engine in Germany

In 1885-86, Gottlief Daimlet patented an internal

combustion engine in Germany.

In 1895, Charles E. Duryes and Elwood and J.Haynes in

America developed an experimental automobile. In this year pan

chard and elevator in French also developed a car with motor

execution and incorporated, the chief features of the automobile

as we know it today.

In 1890-95, The European designers were also active in

the development of the automobiles.

In 1895, European designers purchased from France had

the engine placed in front of chassis, housed on to a sliding gear

transmission and incorporated brake pedal clutch and

accelerator.

In 1900, the design of the automotive was so improved

that it awakened the public to the fact that this new form of the

transportation was really practical form.

In1906, many of the great name around which the

world’s largest manufacturing industry was to be built in America

had already begin to manufacture the automobile vehicle

Packard, autocarolds mobile, while, Bulk Overland, Ford, Cadillac-

C etc., all these names were on motor vehicles before 1905.

pierce-Arrow, Locomotive, Maxwell, Franking and peerless were

also important in that time in the technical and commercial

development of the motor vehicle.

In 1920, there was a gradual change and refinement in

automobile design It was clear by that the spark ignition gasoline

engine was the power plant of the modem motor vehicle water-

cooled engines were almost universal.

The sliding gear transmission had established itself as

predominant. The puppet value was used in almost every engine

design. Engines were also located in the chassis .

In this period the major improvements were made in very

carry feature. The designers tried to produce a vehicle which will

function at all times under all conditions and which were

comfortable to ride and easy operate.

Increased life of tires, independent front wheel suspension,

four wheel hydraulic breaks, high compression ration, higher

power, use of now materials and hundred’s of other changes

have been made.

In recent years, the passengers car chassis construction

has been forced to shape itself tore-designed bodies, while in the

field of truck design, body-chassis problems now get

simultaneous consideration to a greater than even before.

Fluid play wheels, freewheeling over drives, automatic

transmission and many other newer features are in the today’s

car.

The diesel engine was invented only a few years after the

spark ignition engine car had engine in the years had provided

the owner with cars that are afe, easier to drive, more reliable

and comfortable.

AUTOMOBILES IN INDIAN SCENARIO

One of the most visible signs of entry of automobile

multinational companies (MNC’s) into India is the hue of multi

colored cars seen on Indian roads, of courses this does not mean

that the changes effected but those MNC’s are only cosmetic.

The truth is that their entry has led to far reaching changes

in both manufacturing marketing of automobiles. The transition

has been necessitated by the entrance of international

companies accompanied by the infusion of modem technology.

These manufactures continued to maintain their monopoly

as to regulations then exist in the country did not permit any

reputable automobile manufacturer to establish company here.

While elsewhere in the world survival for automakers

depended on introduction of cars with better technology at that

time was a mute spectator to all these technological advances

were protected and monopolist regime.

The Indian automobile industry is at the threshold of a

transition that will affect all the segments from two wheelers to

tractors. This tradition has been necessitated by the entrances

of MNC’s by the infusion of modern technology.

In the coming years all segments in the industry will face

challenges on account of either over supply price was or a shifty

in consumers preferences. This is likely to be felt more

intensively in passenger car segments than in other segments in

the industry with a 25% present growth of $8 billion.

Indian automobile is one of the fastest growing industry in

the world. The major automobile industry is one of the fasted

growing world. The major auto manufacturers are well aware of

the galloping growth rate and most of them have rushed to set

up company in India to slice of the potentially gigantic market.

The automobile industry long stifled in the era of the controls,

is emerging as a driving force for the engineering sector with

almost all the global leaders in the industry setting up a company

in India.

There is an old saying” take a pan with some water, put frog

in it and start heating it, frog will never realize that with the rise

in temperature in is nearing its death but if you put the frog in a

pan of hot water, it will at once jump out.”

Indian industries are in a similar situation, before

liberalization, hey never realized that they are nearing death. It

was only after the liberalization they realized.

In the coming years all segments in the industry will face

challenges on account of either over supply price wars or a shift

in consumers preferences. This is likely to be felt more

intensively in the passenger car segments of the industry.

The trend in India is being changed by the so-called

statues, need and necessary the people who previously went on

bikes now go on cars not just one particular car but a variety of

choicer among them. So, the result is upgrade in the salad of

cars in India which was pretty low.

The automobile not only an issue of consumption. It is

regarded by the government as a sector that drives an entire

economy.

LIBERALIZATION POLICY

In 1991, the Government of India, announced an economic

policy package and initiated measures which may be said to

have brought about a qualitative change in the pattern of

government business relationship and statically altered the

character of business of environment.

With the entry of MNC’s and growth of foreign companies,

domestic product markets are being increasingly subjected to

forces of competition.

It was in July, 1991 that the liberalization of economic

policy started in real terms. India opened it’s gated to foreign

investors who were seriously looking fore untapped markets to

prop up the sagging global passenger car segment.

Most of this automobile MNC’s entered into joint ventures

with existing Indian automobiles manufacturer and simply used

up the existing facilities to assemble their cars.

So, the entry of Mac’s into the Indian protected market

created a wide range of choice for the buyers with latest models

for the ultimate satisfaction of the customers.

Very soon one can expect a multitude of years specially

designed and priced for Indians to hit the market. The new

competitors are offering product technologies that are far more

advanced than the Maruti of 80’s vintage. Many say that

competition brings out the best in the people posing challenges

for all the old and new in the automobile industry.

In1769, a French engineer CAPTIN NICHOLAS built the first

load the vehicle propelled by its own power. It was a three-

wheeler, four-seatwork vehicle fitted with steam engine. It

attained a peed of about 21/2 M.P.H. for 15 minute. In 1880.

German & French efforts developed of this vehicle.

In 1885, Benz in Germany built a tricycle propelled an

internal combustion engine. In 1885-86, GOTTLEEF

DAIMLETpatented an internal combustion engine. In 1895,

CHARLES E.DURYES and ELWOOD and J.HAYNES in America

developed experimental automobile. In this year PANCHARD and

LEVAMOR in France also developed a car with minor executions

incorporated the chief features of the automobile as we know it

today. In 1890-95, the European designers were also active in

the development of automobile.

In 1900. The design of the automobile so improved that it

awakened the public to the fact that it was new form of

transportation.

In 1906, many of the great names around which the world’s

largest manufacturing industry was to be built in America had

already begin to manufacture the automobile vehicle, Packard,

Auto car –Oldsmobile, white, bulk overland, ford, cadillan-c etc.,

all these names were, motor vehicles before 1905. Pierce-arrow,

locomotive, Maxwell, franking and peerless were also important

at that time in the technical and commercial development of the

motor vehicle.

In 1920, there was a gradual change and refinement in

automobile design. It was clear by the spark ignition gasoline

engine, which was the power plant of the modern motor; vehicle

water-cooled engine was almost universal. The sliding gear

transmission had established itself as predominant. The puppet

value was used in almost every engine. Engines were all located

of the chassis.

In this period the major developments were made in every

carry features. The designers tried to produce a vehicle which

will function at all times under all conditions and which were

comfortable to ride and easy to operate. Increased life of tyres, ,

independent, front wheel suspension, four wheeler hydraulic

brakes, high compressions ratio, higher power, use of new

materials and hundreds of other changes have been made.

In recent years, the passenger car’s chassis construction

has been forced to shape itself and redesigned bodies. While in

the field of truck design , body chassis problems now get

simultaneous consideration to automatic transmission and many

other new feature are in today’s car. The diesel engine was

invented only a few years after the spark ignition engine cars

came into existence. Cars provided the facility to the owners

that are safe, easier to drive, more reliable and comfortable.

HEAVY INDUSTRIES

With strengthened self-confidence thanks to straight

success in construction and automobiles, Honarary Chairman

Chung Ju Yong again made a challenge to the ship building

industry.

This challenge received cold reaction from developed

countries when Hyundai asked them for funds and technology

which were necessary for the construction of a dockyard. They

judged Korea to be a weak country to carry the ship building

industry. After important attempts and negotiations with some

countries, Hyundai finally borrowed loan amounting to 100

million US dollars from British and Swiss bank.

The construction of the Uslan Dockyard started under the

command of Honarary Chairman Chung Ju Yong and was

completed in 2 years and 3 months. The ceremony for the

completion and the christening ceremony for the 2 ships order

were held together. This record of simultaneous ceremonies

remains as a unique event in the history of ship building industry.

Hyundai Dockyard Company Limited was later renamed as

Hyundai Heavy Industry Company Limited and has been

persistently playing the pivotal role in domestic heavy industry.

With all these achievements it has staged itself a long side world

wide business giants with its extended operations in the fields of

Hyundai Industries Companies LNG carries Hyundai precision and

industry company, a magnetic levitation trains and Hyundai

Electronics Company to name a few.

ELECTRONICS (1983):

High technology is the key to success in 21st century

business world. We have to acquire a new knowledge before

others and we have to do what others cannot do, since its

opening in 1983 it concentrated on the HITECH industry. Its

efforts were specially focused on semiconductor production

technology and development of latest technologies as a result it

has grown into the top corporation in the industry.

Hyundai Electronics Company Limited recorded over 80%

annual growth rate on average. It also founded Mabukri Research

Institutes. In this way the Hyundai Group has been active and

persistent in research activities playing the role of locomotive for

the progress of Korean Economy.

OTHER ACTIVITIES:

The top corporation is not obsessed with its growth. A

corporation can become the No.1 only when its returns its profits

to the society. The Hyundai Group has been taking the initiative

in giving the profits back to the society. Hyundai encourages the

young people who give up their dreams due to financial difficulty.

The Asian Foundation was found in 1977 for such public

undertaking Honorary Chairman Chung Ju Yong invested private

funds work of 50 billion in the foundation which was a portion in

the medical care, scholarships and cultural projects besides that

Asian Education Foundation includes Hyundai Middle School.

Hyundai High School and University of Uslan in dedicating itself

to educating young people full of dreams who will lead the

future.

Honorary Chairman Chung Ju Yong has also been the

president of Federation of Korean Industries in 1977 and held this

title for the longest period among all the other presidents,

devoting himself to the development of Korean economy.

Honorary chairman Chung Ju Gang was also appointed as the

chairman of Seoul Olympic committee in 1981 which were held in

Nagoya city in Japan. Korea held the 88 Seoul Olympics

successfully and had a chance to upgrade its position in the

world.

The Hyundai Group which has the top in Korea not being

satisfied with it made all arrangement for growing into the No.1

Corporation in the world. The new chairman of the group Chung

Mong Koo in 1996 declared value management to enhance its

value through the services reduced by the company to service in

the age of limitless competition.

It further extends its business operations to the space and

aircraft steel and Banking sectors. Hyundai group preparing to

meet the advancement of Korean economy into other countries

and to become a world corporation dedicated to human welfare

and happiness. Hyundai Group is actively investing in the

development of product and technologies, which can be used for

the societal development. Hyundai Motor India Limited is a

wholly owned subsidiary of $8.24 billion. Hyundai Motor

Company that was set up in 1967 as a part of Hyundai business

group of South Korea. With strong emphasis on performance

safety and product quality, Hyundai has a presence in 168

countries across the world. The corporate philosophy of the

company is to develop mutually beneficial relationship with

nations and communities.

Hyundai Group repeated its growth even during the age of

constructions with the indomitable Hyundai spirit of the past half-

century and it celebrated its 50th anniversary in 1997,

encouraging all directions and employees to work in concert.

GLOBAL NEWS:

Hyundai’s Accent named “ Best Value” by US Consumers.

U.K Customers give top marks to Accent’s reliability.

Hyundai shines at the Moscow motor show.

Hyundai Santro, Peak of popularity in the Indian market.

Hyundai reveals its newest concept car at the Paris Motor

show.

Santro Fe proves excellence at the Crete test drive.

HMC to expand the Hyundai name in Turkey.

Hyundai on its way to build its second plant in China.

Mighty II to serve the Indonesia market for 5 years.

OVER VIEW OF THE INDIAN CAR MARKET

Automobile industry in India is currently experiencing

demand for the vehicles of different types. This is due to volcanic

increase in the number of the vehicles of all categories and all

types of the vehicles. The reason for this is the Indian economy

which was closed till then.

This is the sectors of the economy which benefited greatly

by globalization and liberalization.

The face of the industry has changed to such an extent just

a decade age one would fail to recognize it as the Indian auto

industry. Today the Indian market does not witness just as

Ambassador Fiat competition. Rather it has become a battle field

for it is witnessing cut throat competition between the world from

this brands like FORD, HONDA, MERCEDES, HYUNDAI, DAEWOO.

Infact the leading market leader MARUTI has lost a sizable crunch

of its market share from a magical mesmerizing 80% to 66.2%

during the same period.

Hyundai plant was setup in Sriperambundur, 30km outside

Chennai in a record time. This shows a commitment to the Indian

customer and Indian auto industry. The first Hyundai Santro was

launched on October 20, 1998. Santro was set to be the best

package for the budget car buyer.

Y.S.KIM (Yang. Soo.Kim) is the Managing Director of

Hyundai Motor India. The Korea and Indian Engineers pore their

efforts for the efforts for the production Santro prototypes. The

manufacturing style of Hyundai Santro has not been the same as

Maruti Udyog, which initially imported C.K.D kits for the first

Maruti 800. The manufacturing process begins with coiled steel

arriving from South Korea. The entire auto industries in India rely

on imported steel to manufacture vehicle body structure, as

locally available steel cannot be effective.

The assemble of the car is mostly manual HMI has set up a

allimem foundry on site to produces cast components like

cylinder heads and gear box casings. The reasons for Hyundai

rapid implementation were wholly owned subsidiary HMI could

speed up the decision making process. It did not have to conduct

a local partner which might have slowed things down.

This points towards two things the market has become

competitive and dynamic

1. Even the market leader cannot take its market share and the

customers

2. The changing tastes and loyalty of the customers and

subsequently the ultra competition nature of the auto market.

The advent of the two Korean giants HYUNDAI’S SANTRO and

DAEWOO’S MATIZ marks an important turn in the Indian car

scenario. The success rate of the former teaches us what good

marketing and advertising of a good product can achieve. Santro

is just in months has become prime competitive for the car

segment.

HYUNDAI MOTOR COMPANY

A number of players have come in the car industry in few

years, many new models, new services and benefits according to

the customer taste and preference.

A new category continuous to be dominated by the leader

like Maruti Udyog, Hyundai, Daewoo, Fiat, Suzuki, Tata etc., but

the consumers may soon be able to pick up the models of

different companies.

In recent years passenger’s car chassis construction has

been forced to shape itself redesigned bodies. While in the field

of truck design, body chassis problem now get simultaneous

consideration to a greater extent than ever before. Cars provided

the facility to the owners that are safe, easier to drive, more

reliable and comfortable.

HISTORY OF PASSENGER CARS IN INDIA:

The passenger car in India has been considered as luxury

item. Only a rich and the super rich could afford a car. In the 50’s

and 60’s owning a car was the ultimate statement of having

made it in life. There were just 3 major players namely Hindustan

motors, Premier Automobiles and Standard Motors.

The models they offered were the Baby Hindustan, its later

version called the Ambassador, the Fiat 1100 and the Standard

Herald, which fought for market share in a fairly stagnant

market. The Ambassador and the Fiat were the front-runners

with the coming of the third.

There were other players in other segments like the Wily

Jeep and Mahindra & Mahindra offerings. The late 70’s saw a

movement to produce a people car an attempt to bring the less

rich into the fold of the more fortunate ones. And so a seed was

sown called the Maruti 800.

DIFFERENT CARS SEGMENT

There has evidently been a major shift in focus, world wide,

to small cars offers the most logically and cost effective means to

combat traffic congestion and air pollution in metropolitan cities.

The global vehicle giants are seriously contemplating entry into

the big way.

For instance world class leaders like Mercedes Benz and

Ford feel confident about making mid size and luxury cars. The

newly floated joint ventures started producing luxury cars,

completely ignoring the past vast multitude of average buyers

whose purchasing power in an inflation ridden economy is very

limited. All the three companies Telco, Hyundai and Daewoo

Matiz are confident enough of successfully marketing their

respective vehicle in the market that is sure to hot up in the

coming and later years.

The entry of the manufacturers has posed a big threat to

MUL whose monopoly in the car segment has remained

unchallenged so far. Well altered MUL is busy remodeling its

Maruti 800 and may introduce a new model Maruti 900 a cross

between Maruti 800 and Zen in order to meet the competition.

When the MNC rushed to the Indian market and started

producing high technology vehicle, the prediction among the

automobile experts was that the Indian market wont have that

much capacity to absorb the entire production. A similar situation

may arise if the market is crowded with small cars. Also to be

considered the fact that the road infrastructure facilities and

emission control regulation are most inadequate.

THE NEW ENTRANTS

The economic reforms of 1991-92 began to dismantle the

policies that had isolated and pushed the country’s growth rate

from 4% to 7%. India is now being routed as the new Asian tiger

and this could be the order of the day. The first multinational car

to enter the Indian market was the South Korea major DAEWOO.

Its Cielo was in a direct competition with the just launched

Esteem. This was followed by Peugeot 309, manufactured by the

Premium Automobiles in collaboration with Peugeot of France.

The industry truly took of as in a flurry of activity, nearly all

the major players announced plans to enter the market.

Mercedes tied up with Telco to produce E-220 and D-250.

General Motors tied up with Hindustan Motors to

manufacture the Opel Astra. Ford tied up with Mahindra &

Mahindra and established Mahindra Ford. Hyundai entered India

through 100% owned subsidiary to manufacture Santro followed

by Mitsubishi Lancer. Honda recently tied up with Hero Honda

launched its own indigenous car the Indica.

ENTRY OF PREMIUM CARS

The premium car segment was chosen by the new entrants

as a market entrant as part of a market entrance strategy to

create brand awareness. Today we have the unusual spectacle of

too many cars chasing too few Indians for a country, which used

to manufacture 1.81 lakh cars per annum in 1991. India today

produces over 4 lakh cars per annum. The Indian market has now

changed from sellers market to buyers market.

The first MNC car to enter into the Indian market was South

Korean major DAEWOO. The premium car segment was chosen

by the new entrants as part of the market entrance to create

brand awareness. Customers tend to hold back their purchase

decisions in anticipation of new car launches, price cuts, the

glamour of millennium car and other factors.

For the average Indian car buyer the entry on MNC’s is

definitely a big boom. The customer is getting the best

technology on a part with other developed countries.

COMPANY PROFILE

Hyundai Business Group is a South Korean company, which

entered into business activities way back in 1947 seeing the

rapid industrialization and modernization-taking place around the

world. It brought an international recognition to its country

through its operations round the world and paved its way to

modern economic growth.

Hyundai group is composed of 50 subsidiaries like Ship

Building, Engineering & Construction, Heavy Industries,

Machinery, Iron and Steel, Electronics, Aerospace,

Telecommunications, Information and Technology, as well as

Financing petrochemicals energy trade and service sectors.

In 1960’s it involved in the construction industry. In 1970, it

concentrated on shipbuilding, automobile, steel and machine

industries and laid a foundation for Korean heavy industry. In

1980, it launched high tech industries such as electronics robot

petroleum, space and aircraft. In 1990, developed new

technologies reformed management and stressed training

human resources, with the aim to become the No.1 Corporation

in the world.

AYS Automobiles Pvt, Ltd., started the dealership of

Hyundai cars at Rajahmundry for West Godavari Districts April,

1999. So far, AYS sold about 309 Santro’s and 100 Accents and 2

Sonato’s. The company’s turnover till date is around 16 crores.

The company has earned an amount of Rs. 72 lakhs by way

of dealer margins and sale of spares & accessories; by earning

profit in the first two years of operations.

The workshop is equipped with the latest technology

equipments as per Hyundai specifications and is contributing Rs.

25 lakhs of revenue to the company. The total value of

Machinery & Equipment is worth Rs. 25 lakhs. The workshop also

has an emergency road service to attend complaints 24 hours a

day anywhere in the territory. The show room is on the NH-5 and

is designed as per the Hyundai Motor India’s standard pattern

and is well lit to display the cars.

HISTORY IN CONSTRUCTION FIELD

Hyundai group started from a small construction company

named Hyundai Land and Construction in 1947 has a growth

under difficult conditions. Hyundai Engineering & Construction

Company Limited enjoyed continued business growth after it was

renamed from Hyundai Land And Construction. The repair of

Koryong Bridge in particular, put financial status of Hyundai

Group in a deep trouble owing to a severe inflation in addition to

its infant equipment and skills. However Honorary Chairman

Chung Ju Yong of Hyundai Group and employees of Hyundai

Engineering & Construction Company Limited willingly submitted

to a deficit and completed the bridge construction work

successfully. This success has left a vivid impression of Hyundai

Group all over the industry thereafter. Hyundai Engineering &

Construction Company Limited conducted the restoration work of

the Hans River Bridge then it undertook lots of construction

works for the US army stationed in Korea. Hyundai Construction

Group later achieved an outstanding improvement of technology

by adopting mechanized construction methods and advanced

techniques and accumulated know-how in the management of

human resources.

Later in 1995 it became the very first construction company

in Korean to advanced into overseas sites. This has taken place

when Korea economy was in a depressed state, when Korea was

under such circumstances, a small company with a short history

of a little over 10 years made its first entry into giant overseas

market, any way Hyundai Engineering & Construction Company

Limited, let its challenge it a success. In a led for a highway

construction in Thailand in 1965, it defeated developed countries

with long experience in construction and won the bid, which was

a victory for a small country from the east. Thereafter, Hyundai

Engineering & Construction Company Limited stepped into the

Vietnamese market and earned reputation as a construction

company. It further marched to Alaska Guam, Australia,

Indonesia and many more countries.

Hyundai Engineering & Construction Company Limited

constructed the Juveil Industrial Port in Saudi Arabia, the largest

scale in the world and surprised everyone. Their entry into the

Middle East was decisive in revitalizing Korean economy, which

was depressed due to shortage of foreign currency at that time.

Moreover advancement into Iraq and Libya paved the way for

establishing diplomatic relations with those nations. Hyundai

Engineering & Construction Company Limited, continued seeking

overseas market and stepped into regions of North America and

South East, the name and fame of technology of Hyundai were

known worldwide.

HYUNDAI SPORTS

Hyundai World Rally team, best ever in the Australia Rally

Hyundai Motor Company joins in the Fun of the Fustal 2000

promoting the Hyundai name through South American Qualifying

Games for the World Cup 2002.

Hyundai operates overseas road service vehicle program

Hyundai Motor Company (HMC) has started its operations of

the world wide Overseas Service Program for its customers as

part of the Company’s commitment to provide the very best

vehicle maintenance service to its global customers.

HMC made its first shipment of 300 overseas service

vehicles to 30 countries including Japan, Australia, New Zealand,

Mexico etc and will increase its shipment to dealers in 160

countries the following year.

As technology, quality, and reliability, improve amongst all

cars makers, this program can help difference Hyundai amongst

existing and potential customers, enabling to further raise

Hyundai’s brand awareness as well as boost the image of

Hyundai Motor Company in the global markets.

Santa Fe wins the good design product award

Hyundai’s Santa Fe received the prestigious Presidential

Award at the 2000 Good Design Products Exhibition held by the

Korea Institute of Industrial Design Promotion by the Ministry of

Commerce Industrial and Energy.

Out of 985 products from 292 companies exhibited, 320

products were selected as “Good Design Products” and only 39

products were awarded prizes during the annual competition.

Hyundai’s Santro Fe won the most covered and honored award,

the Presidential Award in the Automotive section. By winning

such a glorious award as thus once, it has indefinitely proven

Hyundai’s constant pursuit of excellence and dedication to the

development of beautiful styled cars for its potential customers.

HMC tops list in customer satisfaction survey, 7 years

straight

For the seventh consecutive year in 2000, HMC topped the

list of customer satisfaction in a survey conducted by Korea

Management Association Consultants, Korea’s largest

management consulting company.

According to the KCSI (Korea Customer Satisfaction Index),

HMC won first place in the passenger car manufacturing field for

giving the most satisfaction to its customers for the seven

straight years. Hyundai vehicles were praised for low NVH,

stability-driving comfort, engine and transmission performance,

fit and finest and design of the exterior and interior, maintenance

service and the market reliability.

To heighten the awareness of Hyundai to world wise

customers HMC has come up with a brand new 2000 Corporate

Image Campaign, a long term strategy; in brand image

development to steadily build up Hyundai’s brand image and

corporate image throughout the world market.

Diesel Engine to penetrate the export market

HMC has successfully developed a common rail direct

injection 2.0 diesel engine for passenger cars, becoming the first

Korean car maker to be applying his technology.

Hyundai develops large commercial diesel engine:

Using the latest technology, power tech engine increases

the output while attains maximum fuel efficiency, marking it a

low consumption engine. The power-tech engine has been

developed with the design targets improving the performance,

reducing fuel consumption, lowering noise and vibrations and

reducing emissions. It has passed over 1 million kilometers of

various durability tests successfully providing its low noise and

vibration levels vastly improved compared to the previous large

sized commercial vehicle and bust engines.

Hyundai Accent named “ Best Value” by US Consumers

Hyundai Motor’s subcompact Accent was proudly named as

the best value car in the small car category in a survey of US

consumers. The survey was conducted by strategic vision a

renowned consulting and market research organization based in

San Diego California.

Hyundai Santro, peak popularity in the Indian market

Hyundai is on a roll in the Indian market, emerging as top

selling import and posting sales of 75,843 units for the first 10

months of 2000.the Santro proudly proved its success at being

the top selling model for five consecutive months since June. It

has distinguished itself with a total sales figure of 60,516 units

between January and October. Also the Accent has been the top

selling model in the premium segment for 5 months altogether

where its sales reached a total of 15,327 units for the first 10

months. Thanks to the strong performance of both the Santro

and Accent. Hyundai has set higher goal for the future in the

Indian market.

Hyundai Accent award Australia’s Best Small Car

The Accent was selected as Australia’s best small car for

2000 by mix leading automotive consumer organizations in

Australia.

Hyundai Motor Company joins in the fun for Futsal 2000

Hyundai Motor Company has proudly become the exclusive

automotive sponsor of the 4th FIFA Futsal World Championship

Guatemala 2000, held between November 18 to December 3.

Hyundai took this golden opportunity to leap into another area of

the world market and promote its brand name through various

marketing activities and advertisement.

Hyundai Motor India Limited is a wholly owned subsidiary of

the Hyundai Motor Company (HMC), Korea, a part of the Hyundai

Motor Group comprising Hyundai Motor Company, Kia Motors,

Hyundai Mobis and other affiliated companies, with a combined

turnover of over US$ 50 Billion. Hyundai motor vehicles are sold

in 166 countries through 4,504 dealerships and showrooms,

Hyundai has a combined annuals sales of over 3 million units and

is one of the fastest growing auto manufacturers in the world.

Hyundai and Kia together have R&D centers in the United

States, Europe, and Japan apart from the global R&D

headquarters at Ulsan, Korea.

The Hyundai Motor Group has recently dedicated an annual

R&D spend of close to US$ 2 Billion, up from US$ 1.2 Billion to

enhance its thrust on new product development and achieve

global quality benchmarks by year 2005. This includes the $30

mn Hyundai-Kia Design and Technical Center in Irvive, California.

Focus

The R&D team focuses on the development of new products

and technologies that include interior and exterior design

changes, development of new generation engines and alternate

fuel systems, concept vehicles and advanced passenger safety

and comfort systems, in line with evolving customer preferences

across the globe. Recent successes of the team include the

development of the Hyundai patented Common Rail Direct

Injection (CRDi) engine in association with Detroit Diesel and the

award winning Fuel Cell Santa FE.

Efforts

Some of the ongoing projects that the Hyundai R&D team is

involved in include the development of the ‘World Engine’ in

association with Daimler Chrysler and Mitsubishi and the

development of Automotive Telematics in association with IBM.

That the efforts of the Hyundai R&D team has paid great

dividends to the company is evident from the fact that the

company’s newly engineered products like the Santa Fe and the

Getz have made waves in the global automotive markets and the

‘US Consumer Reports’ magazine has ranked Hyundai cars in

level with that of Honda in its recent quality rankings

Hyundai Motor India has been awarded the benchmark ISO

14001 certification for its sustainable environment management

practices. Living up to is commitment of providing global

standards of quality and process management in India, Hyundai

had put in place an Environment Management System (EMS) at

its manufacturing plant in Chennai right from its project stage.

The certification process was completed in a record time of 10

months with ‘Zero NCRs’. The assessment was done by TUV

SUDDEUTSCHLAND and covered areas like Awareness Training,

Technology Upgradation, Recycling, Waste Management

and fulfilling Government Regulations.

HMI is also working on a backward integration strategy that

will support vendors of the company in implementing EMS.

Hyundai Motor Company, S. Korea, the parent of HMI, has

been doing considerable work on sustainable Environment

Management. The company has a well defined framework in

place for developing products that reduce pollutant emissions

and processes for preservation of natural resources and energy

along all the stages of the product lifecycle from production,

sales, use to disposal. The company has also been in the

forefront development of environment friendly technologies like

Hybrid Electric Vehicles (HEV’s), and Fuel Cell Electric Vehicles

(FCEVs) and has been awarded the ISO 14001 certification for all

its three major plants in ULSAN, Asan and Jeonju in S. Korea.

Social Responsibility

Hyundai, as a responsible corporate citizen is committed to

sustainable social development and the preservation of the

environment. All the company’s key manufacturing units,

including the Indian plant have the ISO 14001 certification for its

Environment management practices. As a part of its social

responsibility programs, the company conducts various

campaigns to spread awareness of in-car safety and safe driving

practices, particularly targeted against drunken driving,

speeding, etc.

As a part of its community development projects, the

company has adopted a few villages around its factory in

TamilNadu and has been working towards the social and

economic development of these villages, assisting them in the

areas of primary health care, education, basic amenities and

employment opportunities

The production management process at Hyundai Motor

India are overlaid with an organization-wide implementation of

manufacturing best practices like Just-in-time inventory

management, Kaizen, TPM and TQM, that help us in making the

world’s best cars, right here in India.

HYUNDAI MOTOR INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned

subsidiary of Hyundai Motor Company, S. Korea and is the

second largest and the fastest growing car manufacturer in India.

HMIL presently markets over 18 variants of passenger cars

across four models, the Santro in the B segment, the Accent in

the C segment, the Sonata in the E segment and the Terracan in

the SUV segment. The company recorded combined sales of

150,741 units during calendar year 2003 with both Accent &

Santro emerging leaders in their respective segments.

HMIL’s fully integrated state-of-the-art manufacturing

plant near Chennai boasts some of the most advanced

production, quality and testing capabilities in the country. The

company is investing an additional US$ 220 Mn to expand

capacity at this plant to 250,000 units a year in line with its

recent designation as HMC’s global export hub for small cars and

to cater to its upcoming product launches India.

HMIL has sold over 500,000 cars in a record time of just

over 5 years since commencement of commercial production in

September 1998 and is all set to emerge as one of largest

exporters of passenger cars and components out of India. HMIL

was recently awarded the benchmark ISO 14001

certification for its sustainable environment management

practices.

Hyundai’s fully integrated manufacturing capabilities

include:

The Press Shop

A computer controlled line that converts sheet metal to

body panels of high dimensional accuracy and consistency.

The Body Shop

A hi-tech line that builds full body shells from panels.

Automated robotic arms are used for intricate welding operations

that ensure superior and consistent build quality.

The Paint Shop

This is one of the most modern paint shops in the country

and uses the environment friendly water based process for

superior and lasting exterior. A unique process management

system followed here helps us deliver the most extensive colour

range, independent of minimum batch requirements, helping

customers get their preferred colour anytime.

The Aluminum Fondry

Forges the engine cylinder blocks for our cars to exacting

design specifications.

The Engine and Transmission Shop

One of the biggest engine shops in the country, this unit is

equipped with the most modern tooling and testing facilities to

make a wide range of engines in house.

The Plastic Extrusion Unit

Moulds the dashes, bumpers and other plastic components

to perfect fit and finish.

The Plastic Paint Shop

One of the very few manufacturing units in India to have

this facility in-house, Hyundai’s plastic paint shop delivers a high

grade finish on exterior plastic components.

The Test Track

With comprehensive performance testing facilities like

rattle testing and ABS brake testing, this track is designed to

meet pre-delivery (PDI) certification standards to exacting Euro

specifications.

AYS AUTOMOBILE PVT. LTD.

The liberalization of Indian Economic Policy in the Finance

Budget has opened gates for renowned international carmakers

to establish their business/manufacturing units in our country

and thereby created opportunities in all spheres.

Hyundai Motor India Limited, a Korean Car Giant, has

utilized the above opportunity and started its manufacturing

operations in Chennai with an initial production capacity of

50000 cars/annum and increased its capacity to 200000

cars/annum.

Hyundai Motor India Limited is the pioneer in introducing to

Indian customers the “first-of-its-kind” concepts like Hyundai

Finance, Contemporary Technology, Tall-boy Design etc. Through

their “leadership through listening” strategy, have been

upgrading their products to suite customer requirements. They

believe in value addition to their cars rather than selling on

discounts. All their three cars viz., SANTRO, ACCENT & SONATA

are No. 1 in their respective segments, in terms of quality and

volumes.

This liberalization has helped the salaried and upper middle

class to opt for a car which was hitherto a luxury. The low rates

of interest and easy processing procedures also helped these

segment customers to buy cars for their family needs.

AYS Automobiles Pvt Ltd., is the dealer for Hyundai Motor

India Limited, in the five north coastal districts viz., Srikakulam,

Vizianagaram, Visakhapatnam, East and West Godavari Districts

and started serving the customers of these districts since

October’ 1998.

AYS Automobiles Pvt Ltd., has 3300sft state-of-the-art

showroom located in Siripura, the heart of Visakhapatnam City

and a customer care center in Industrial Estate, 104 Area, with

trained man power and latest equipments to cater to the after-

sales service of its customers.

AYS Automobiles Pvt Ltd., had sold nearly 2000 cars,

through their two outlets in Visakhapatnam and Rajahmundry till

July’2003. In view of the increasing sales and service volumes,

they have opened a new sales & service outlet in Bhimavaram

and Kakinada. They have also opened another customer care

center at HPCL Millenium Auto Care in Siripuram. This customer

care center is opened exclusively to meet the growing customer

base and also to facilitate the customers living in Beach Road,

Pandurangapuram, Daspalla Hills, Kirlampudi Layout, CBM

Compound, MVP Colony etc., who will have paucity of time.

The customer care centers of AYS Automobiles Pvt Ltd., at

HPCL Auto Care and Industrial Estate has the facilities like Wheel

Balancers, Wheel Aligners, Thermax Paint Booths, Dent Sucking

Machine, Emission Control Equipment etc.,

AYS Automobiles Pvt Ltd., had won several awards during

2000 and 2003 namely, No-1 Dealer in AP for Customer

Satisfaction, Top Performer in South Region for Hyundai Finance,

No.1 Dealer for Sales Satisfaction etc.,

The growth of AYS Automobiles Pvt., Ltd., shouldn’t have

been possible without the support of its associates, who have

been extending all their help ever since its inception and the

success is attributed to their dedicated, loyal and customer

friendly staff.

We sincerely thank all the customers, who had

patronized us.

THEORETICAL FRAMEWORK

What is a Brand?

A Brand is a name, term, sign, symbol or design, or a

combination of them, intended to identify the goods or services

of one sellers or group of sellers and to differentiate them from

those of competitors.

Most of the marketers say that “ Branding is the art and

cornerstone of marketing”.

In essence, a brand identifies the seller or maker. It can be

a name, trademark, logo or other symbol. Under trademark law,

the seller is granted exclusive rights to the use of the brand

name in perpetuity. Brands differ from other assets such as

patents and copyrights, which have expiration dates.

A brand is essentially a seller’s promise to deliver a specific

set of features, benefits and services consistently to the buyers.

The best brands convey a warranty of quality. But a brand is an

even more complex symbol. It can convey up to six levels of

meaning.

Attributes:

A brand brings to mind certain attributes. By its well built,

well engineered, expensive, durable, high-prestige automobiles.

Benefits :

Attributes must be translated into functional and emotional

benefits. For example, the attribute “ durable” could translate

into the functional benefit. The people says that “I won’t have to

buy another car for several years”. The attribute “expensive”

translates into the emotional benefit “the car makes me fell

important and admired”.

Values:

The brand also says something about the producer’s

values. Mercedes stands for high performance, safety and

prestige.

Culture:

The brand may represent a certain culture.

Personality:

The brand can also project a certain personality.

User:

The suggests the kind of consumer who buys or uses the

product.

If a company treats a brand only as a name, it misses the

point. The branding challenge is to develop the deep set of

positive associations for the brand. Marketers must decide at

which levels to anchor the brand identity.

Promoting the brand only on one benefit can also be risky.

Suppose Mercedes touts its main benefit as “high performance”,

then several competitive brands emerge with high or higher

performance. Or suppose the car buyers start placing less

importance on high performance as compared to other benefits.

The most enduring meanings of a brand are its values,

culture and personality. The Mercedes stands for high

technology, performance and success. Mercedes must project

this in its brand strategy. Mercedes must resist marketing an

inexpensive car bearing the name; doing so would dilute the

value and personality Mercedes has built up over the years.

Brand Equity:

Brands vary in the amount of power and value they have in

the market place. At one extreme are brands that are not known

by most buyers. Then there are brands for which buyers have a

fairly high degree of brand awareness. Beyond this are brands

with a high degree of brand acceptability. Then there are brand

that enjoy a high degree of brand preference. Finally there are

brands that command an high degree of brand loyalty.

The following are the 5 levels of customer attitudes toward

his/her brand from lowest to highest:

Customer will change brands, especially for price reasons, not

brand loyalty

Customer is satisfied. No reason to change the brand.

Customer is satisfied and would incur costs by changing

brand.

Customer values the brand and sees it as a friend.

Customer is devoted to the brand.

Brand equity is related to how many customers are in

classes 3,4 or5. It is also related to the degree of brand-name

recognition, perceived brand equity, strong mental and

emotional associations and other assets such as patents,

trademarks and channel relationships. Companies do not

normally list brand equity on their balance sheet because of the

arbitrariness of the estimate. But clearly brand equity relates to

the premium the brand commands times the extra volume it

moves over an average brand.

The world’s 10 most valuable brands in 1997 in rank order

were coca-cola, Marlboro, IBM, McDonald’s, Disney, Sony, Kodak,

Intel, Gillette and Budweiser.

High brand equity provides a number of competitive

advantage:

The Company will enjoy reduced marketing costs because of

consumer brand awareness and loyalty.

The Company will have more trade leverage in bargaining with

distributors and retailers because customers expect them to

carry the brand.

The Company can charge a higher price than its competitors

because the brand has higher perceived quality.

The Company can more easily launch extensions because the

brand name carries high credibility.

The brand offers the company some defense against price

competition.

A brand name needs to be carefully managed so that its

equity doesn’t depreciate. This requires maintaining or improving

brand awareness perceived quality and functionality, and

positive associations. These tasks require continuous research

and development investment, skillful advertising and excellent

trade and consumer service.

AN OVERVIEW OF BRANDING DECISIONS

Branding Brand Sponsor Brand Name

Decisions Decisions

Brand Strategy Decisions Brand-Repositioning

Decisions

Brand No Brand

Manufacturers Brand

Distributors (Pvt) Brand

Individual Names Blanket Family Name Separate Family Company Individual

Names

Line Extension Brand Extension Multi-Brands New Brands Co-Brands

Repositioning No Repositioning

Branding Decisions:

The first decision is whether the company should develop a

brand name for its products. In the past, most products went

unbranded, producers and intermediaries sold their goods out of

barrels, bins and cases without any supplier identification. Buyers

depended on the sellers integrity.

Today branding is such a strong force that hardly anything

goes unbranded.

In some cases, there has been a return to “ no branding” of

certain staple consumer goods and pharmaceuticals. Generics

are unbranded, plainly packaged, less expensive versions of

common products such as spaghetti, paper towels and canned

peaches. They offer standard or lower quality at a price that may

be as much as 20% to 40% lower than nationally advertised

brands and 10% to 20% lower than retail private label brands.

The lower price is made possible by lower quality ingredients,

lower cost labeling and packaging and minimal advertising.

Why do sellers brand their products when doing so clearly

involves costs?

Branding gives the seller several advantages:

The brand name makes it easier for the seller to process

orders and track down problems.

The sellers brand name and trademark provide legal

protection of unique product features.

Branding gives the seller the opportunity to attract a loyal and

profitable set of customers. Brand loyalty gives sellers some

protection from competition.

Branding helps the seller segment markets.

Strong brands help build the corporate image, making it easier

to launch new brands and gain acceptance by distributors and

consumers.

Distributors and retailers want brand names because

brands make the product easier to handle, hold protection to

certain quality standards, strengthen buyer preferences, and

make it easier to identify suppliers. Consumers want brand

names to help them identify quality differences and shop more

efficiently.

Brand-Sponsor Decision:

A manufacturer has several options with respect to brand

sponsorship. The product may be launched as a manufacturer

brand (sometimes called as National Brand), a distributor brand

(also called reseller, store, house or private brand), or a licensed

brand name. Another alternative is for the manufacturer to

produce some output under its own name and some under

reseller labels. Manufacturers brands dominate, large retailers

and wholesalers have been developing their own brands by

contracting production from willing manufacturers.

The private brands offer two advantages. First, they are

more profitable. Intermediaries search for manufacturer with

excess capacity who will produce the private labels at a low cost.

Other costs, such as research and development, advertising,

sales production and physical distribution are much lower. This

means that the private brands can charge a lower price and yet

make a higher profit margin. Second, retailers develop exclusive

store brands to differentiate themselves from competitors.

Brand Name Decisions:

Manufacturer and service companies who brand their

products must choose which brand names to use. Four strategies

are available:

1. Individual Names:

A major advantage of an individual names strategy is that the

company does not tie its reputation to the product. If the product

fails or appears to have low quality, the company’s name or

image is not hurt. The strategy permits the firm to search for the

best name for each new product.

2. Blanket Family Names:

A blanket family name also had advantage. Development cost

is less because there is no need for “name” research or heavy

advertising expenditure to create brand name recognition.

Further more, sales of the new product are likely to the strong if

the manufacturers name is good.

3. Separate Family Names for all Products:

Where a company produces quite different products, it is not

desirable to use one blanket family name. Companies often

invent different family names for different quality lines within the

same product class.

1. Company trade name combined with individual product

names:

Some manufacturers tie their company name to an individual brand

name for each product.

Once a company decides on its brand name strategy, it

faces the task of choosing a specific brand name. The company

could choose the name of a person, location, quality, life style or

an artificial name.

Among the desirable qualities for a brand name are the

following:

It should suggest something about the product’s benefits.

It should suggest product qualities. Such as action or color.

It should be easy to pronounce, recognize and remember. In

this case short names help mostly.

It should be distinctive.

It should carry poor meanings in other countries and

languages.

Brand-Strategy Decisions:

A company has five choices when it comes to brand

strategy. There are line extensions, brand extensions, multi-

brands, new brands and co-brands.

1. Line Extension:

Line Extensions consist of introducing additional items in the

same product category under the same brand name, such as

new flavors, forms, colors, added ingredients and package sizes.

2. Brand Extensions:

A company may use its existing brand name to launch new

products in other categories.

3. Multi-Brands:

A Company will often introduce additional brands in the same product category.

Sometimes the company is trying to establish different features or appeal to different

buying motives.

4. New Brands:

When a Company launches products in a new category, it

may find that none of its current brand names are appropriate.

5. Co-Brands:

Co-Brands are also called as dual branding, in which two

or more well known brands are combined in an offer. Co-

branding takes a variety of forms. One is ingredient co-branding,

Second one is same company co-branding, Third one is joint

venture co-branding. And finally there is multiple-sponsor co-

branding.

Brand Repositioning:

However well a brand is currently positioned, the company

may have to reposition it later when facing new competitors or

changing customer preferences.

Brand Awareness: Nine Brand Strengtheners:

As Companies become more aware of the importance of

brand power, they wonder how they can strengthen their brands.

Most managers think the answer lies in increasing the advertising

budget. But advertising is expensive and it is not always

effective. Advertising is only one of nine ways to build more

brand awareness and brand preference.

Develop creative advertising.

Sponsor well-regarded events.

Invite your customers to join a club .

Invite the public to visit your factory or office

Create your own retail units.

Provide well-appreciated public services.

Give visible support to some social causes.

Be known as a value leader.

Develop a strong spokesperson or symbol to represent the

Company.

AGE GROUP

TABLE: - 6.1

Total Number of Customers Surveyed: 100

AGE GROUP NO.OF CUSTOMERS

PERCENTAGE

25-45 52 52%

45-65 40 40%

65 And Above 8 8%

Total 100 100%

Interpretation:

From the above table, we can observe that 52% of the

people belongs to 25 – 45 age group, 40% of the people belongs

to 45 - 65 age group and 8% of the people belongs to 65 and

above. The analysis shows that most of the people belongs to 25

– 45 age.

TABLE:-6.2

Total number of Customers surveyed: 100

GENDER NO. OF CUSTOMERS

PERCENTAGE

Male 87 87%

Female 13 13%

Total 100 100%

Interpretation:

From the above table we can observe that among 200

customers 87% are Males and 13% are Females.

Occupation

TABLE: - 6.3

Total Number of Customers Surveyed: 100

OCCUPATION NO.OF CUSTOMERS

PERCENTAGE

Business 38 38%

Professional 30 30%

Student 7 7%

Employee 25 25%

Total 100 100%

Interpretation:

From the above table, we see that 38% of the people

belongs to Business, 30% of the people from Professionals, 7% of

the people from students and 25% of the People belongs to

Employees. The analysis shows that major part of the people

belongs to Business category.

INCOME STATUS (PER ANNUM)

TABLE:- 6.4

Total number of Customers surveyed: 100

INCOME NO. OF CUSTOMERS

PERCENTAGE

< 20,000 34 34%

20,000-40,000 52 52%

40,000 & above

14 14%

Total 100 100%

Interpretation:

The income status reveals that 34% of them are having less

than 20,000 and 52% of them were between 20,000-40,000 and

the remaining 14% were above 40,000. The analysis shows that

the people who having income per annum in between 20,000-

40,000 are more.

FAMILY SIZE

TABLE:-6.5:

Total number of Customers surveyed: 100

FAMILY SIZE NO. OF CUSTOMERS

PERCENTAGE

1-2 10 10%

3-5 78 78%

5 & above 12 12%

Total 100 100%

Interpretation:

Family size reveals that 10% of the people are having 1-2

family size, 78% of the people are having 3-5 family size and

12% of the people are having above 5 family size. The analysis

shows that the family size having 3-5 are using more.

PURPOSE OF PURCHASE

TABLE:-6.6

Total number of Customers surveyed: 100

PURPOSE NO. OF CUSTOMERS

PERCENTAGE

Utility 45 45%

Necessity 51 51%

Status 4 4%

Total 100 100%

Interpretation:

From the table, we can observe that 45% of the people

purchase the car for the purpose of utility, 51% of the people

purchase for necessity and 4% people purchase for status. The

analysis shows that most of the people that is 51% purchase for

necessity.

WHAT FACTORS INFLUENCE TO BUY SANTRO

TABLE: - 6.7

Total Number of Customers Surveyed: 100

FACTORS NO.OF CUSTOMERS

PERCENTAGE

Style 14 14%

Price 18 18%

Brand image 30 30%

Performance 20 20%

Publicity 18 18%

Total 100 100%

Interpretation:

From the table, we can examine that 14% of the people

prefer style, 18% of the people prefer price, 30% of the people

opt for Brand image, 20% of the people have a preference on

Performance and 18% of the people opt for Publicity for buying

the Santro Car. The analysis shows most of them consider Brand

image while buying.

WHO INFLUECNE TO PURCHASE THE CAR

TABLE:-6.8

Total Number of Customers Surveyed: 100

FACTORS NO.OF CUSTOMERS

PERCENTAGE

Myself 20 30%

Family Members 15 15%

Friends 22 22%

Relatives 5 5%

Advertisements 34 34%

Others 4 4%

Total 100 100%

Interpretation:

From the table, we can observe that 20% of the people are

decided to purchase the car on themselves, 15% of the people

are influenced by family members, 22% of the people are

influenced by relatives, 34% of the people are influenced by

advertisements and rest of the people are influenced by other

factors. The analysis shows that major portion of the people are

influenced by advertisements.

IMPACT OF SHAHRUKH KHAN ON SALES

TABLE: -6.9

Total number of Customers surveyed: 100

IMPACT NO. OF CUSTOMERS

PERCENTAGE

Yes 56 56%

No 44 44%

Total 100 100%

Interpretation:

From the table, we see that 56% of the people say that

Sharukh Khan has the impact of increase in sales whereas 44%

of the people say that Sharukh Khan has no impact of increase in

sales.

GOOD VALUE

TABLE:- 6.10

Total number of Customers surveyed: 100

GOOD VALUE NO. OF CUSTOMERS

PERCENTAGE

Yes 92 92%

No 8 8%

Total 100 100%

Interpretation:

From the table, we observe that 92% of the people feel that

Hyundai products give Good Value for money whereas 8% of the

people feel that Hyundai products do not give Good Value for

money.

PRICING OF THE CAR

TABLE:- 6.11

Total number of Customers surveyed: 100

PRICING LEVEL NO. OF CUSTOMERS

PERCENTAGE

Excellent 5 5%

Good 64 64%

Satisfactory 31 31%

Not satisfied - -

Total 100 100%

Interpretation:

From the table, we observe that 5% of the people feel that

the Price of the car is Excellent, 64% of the people feel that it is

Good, 31% feel it is satisfactory and none of them are

dissatisfied with the Price of the product. The Highest % of the

people feel that the Price of the car is Good.

SUPERIOR TO COMPETITORS CARS

TABLE:-6.12

Total number of Customers surveyed: 100

SUPERIOR CUSTOMERS PERCENTAGE

Yes 89 89%

No 11 11%

Total 100 100%

Interpretation:

From the table, we can observe that 89% of the people say

that Santro car is superior to competitors cars and 11% says that

it is not.

SUMMARY

The market of Hyundai cars (Santro, Accent and Sonata) is

growing at rapid speed. Hyundai being one of the dominating

and leading players in passenger car market is expected to

attract significant attention among the investors.

In this Automobile segment there has been heightened

competition with other leading players like Maruti, Honda, Ford

and many others.

As there was competition in small car industry, there was

reduction in prices of the cars and modifications done with the

existing product (e.g., Santro to Santro Xing) and were

introduced in the market. Hyundai small car segment has

occupied second position in the market share.

Majority of the people have informed Brand Awareness

toward Santro. Most of the customers are very much satisfied

with the services offered by the company while few of them are

not satisfied due to minor problems of the car.

Many of the students rated the Brand Awareness as

excellent very few of them have rated as satisfactory.

All the respondents are very happy with the warranty

period given for the cars by the company but many of them have

complaints with the mileage and seating comfort of the car.

Many of the respondents have stated that the prices

charged on services are high when compare to other company’s

services (e.g. Maruti)

Finally the customers are very happy about Brand

Awareness toward Santro.

FINDINGS

The following details can be inferred after analysis with a

simple size of 100, which included customers, by questionnaire

method to find out the brand awareness towards Santro with

reference to AY S HYUNDAI.

Most of the customers relating to Hyundai belong to the

category of employees as they occupy 30% of the entire

customers. The next to them comes industrialists as they

occupy 24% of the customers.

Most of the customers have bought the car 2 years back.

The promotional strategy of Hyundai is advertisement of

which electronic media and by press media are playing a vital

role.

Out of the models of Hyundai the most popular brand is Santro

because it is possessed by 45% of the customers.

Most of the customers are aware of educational programs that

are being conducted by Hyundai to the maintenance of the

car.

Though the customers are having good awareness levels

regarding the programs being conducted by Hyundai, they are

not attending the programs because of various reasons.

The customers find some problem’s regarding the mileage of

Santro while comparing with the remaining models.

SUGGESTIONS

Basing on the survey findings and analyzing the attitudes of

respondents, the following suggestions can be given regarding

the Brand Awareness towards Santro.

The company has to pursue the complaints of the respondents

about the performance of the car’s engine. This suggestions

has been given basing on the complaints of customers

regarding its problems like low mileage.

Transaction and value based loyalty programs can be

conducted.

Making the Driving seat and Passenger seat more comfortable

so that the driver and passengers could have a comfortable

drive.

Analyzing the complaints given by many customers regarding

uncomfortable seats has made its suggestion.

QUESTIONNAIRE

(With Reference to Hyundai Santro)

1. NAME OF THE RESPONDENT:

2. ADDRESS OF THE RESPONDENT:

3. PHONE NO:

4. AGE GROUP:

(a) 25-45 (b) 45-65 (c) 65 & above

5. GENDER:

(a) Male (b) Female

6. RESPONDENTS QUALIFICATION: _________________________

7. OCCUPATION:

(a) Business b) Professional (c) Student (d)

Employee

8. INCOME PER ANNUM:

(a) < Rs. 2,00,000/- b) Rs. 2,00,000/- to Rs. 4,00,000/-

(c) Rs. 4,00,000 and above

9. FAMILY SIZE:

(a) 1-2 b) 3-5 c) 5& above

10. PURPOSE OF PURCHASE OF THIS CAR:

(a) Utility (b) Necessity (c) Status

11. WHAT INFLUENCED TO BUY SANTRO

a) Styling b) Pricing (c) Brand Image

(d) Performance (e) Publicity

12. WHO INFLUENCED YOU TO PURCHASE THE CAR?

(a) Myself (b) Family Members c) Friends

(d) Relatives (e) Advertisements (f) Others

13. WHY DID YOU PURCHASE ONLY SANTRO INSTEAD OF ANY

OTHER SMALL CAR?

(a) Quality b) East to drive

(c) Comfort d) Technically good

14. DO YOU FEEL THAT BRAND AMBASSADOR SHARUKH KHAN

HAS AN IMPACT ON THE INCREASE IN SALES?

(a) Yes (b) No

15. DO YOU FEEL THAT HYUNDAI PRODUCTS GIVE GOOD VALUE

FOR MONEY?

(a) Yes (b) No

16. HOW DO YOU FEEL THE PRICING OF THE CAR?

(a) Excellent b) Good

(c) Satisfactory (d) Unsatisfactory

17. DO YOU FEEL THAT SANTRO IS SUPERIOR TO COMPETITORS

CARS IN THIS SEGMENT?

(a) Yes (b) No

18. DO YOU RECOMMEND SANTRO TO YOUR FRIENDS AND

RELATIVES?

(a) Yes (b) No

19. YOUR COMMENTS/SUGGESTIONS IF ANY?

__________________________________________________________________

__________________________________________________________________

BIBLIOGRAPHY

MARKETING MANAGEMENT

PHILIP KOTLER

COMPANY BROUCHERS & MANUALS

MAGAZINES:

OVERDRIVE

BUSINESS TODAY

CONTENTS

Page No.

CHAPTER – 1 1-10

Introduction Importance Scope Research Methodology Object Limitations

CHAPTER – 2 11-32

INDUSTRY PROFILE History of the Automobiles Automobiles History in World Scenario Automobiles History in Indian Scenario Automobiles History 1967

CHAPTER – 3 33-50

COMPANY PROFILE History in construction field Hyundai motor India Limited

CHAPTER – 4 51-63

Theoretical Frame Work

CHAPTER – 5 64-87

Data Analysis and Interpretation

CHAPTER – 6 88-91

Summary, Findings & Suggestions

CHAPTER – 7 92-94

Annexure

CHAPTER – 8 95

Bibliography

CHAPTER – 1 o Introductiono Importanceo Scopeo Research

Methodologyo Objecto Limitations

CHAPTER – 2INDUSTRY PROFILE

History of the Automobiles Automobiles History in World

Scenario Automobiles History in Indian

Scenario Automobiles History 1967

CHAPTER – 3 COMPANY PROFILE

History in construction field

Hyundai motor India Limited

CHAPTER – 4 o Theoretical Frame

Work

CHAPTER – 5 Data Analysis and

Interpretation

CHAPTER – 6

Summary, Findings & Suggestions

CHAPTER – 7

Annexure

CHAPTER – 8

Bibliography

ACKNOWLEDGEMENT

At the outset, I would like to express my gratitude to

Dr. S. SARABANDHI, Director, Pydah college (P.G.courses),

for permitting me to take up this project at AYS HYUNDAI

AUTOMOBILE PVT. LTD.

I owe my special thanks to Mr. RAMA RAO, Sales

Manager, for providing all the facilities and guiding me

where every necessary.

My sincere thanks to my guide Mrs. LUBZA NIHAR,

Faculty Member, for her invaluable co-operation and

suggestions at every stage of this project without whom this

would not have been completed.

I am grateful to my parents and all my friends for their help

and co-operation.

(S.

SRINIVASA RAO)

DECLARATION

I hereby declare that this project work entitled

“BRAND AWARENESS TOWARDS SANTRO with

Reference to AYS HYUNDAI AUTOMOBILES PVT. LTD.,

VISAKHAPATNAM” written & submitted me towards partial

fulfillment of my Masters Degree in Business Administration

under the guidance of Mrs. LUBZA NIHAR is a

original work done by me. This work has not been

previously submitted by any one else for the award of any

other degree or diploma in any other Institute or University.

(S. SRINIVASA RAO)

BRAND AWARENESS TOWARDS SANTRO

With special reference toAYS HYUNDAI AUTOMOBILE PVT. LTD.,

VISAKHAPATNAM

A Project Report Submitted to Andhra University,Visakhapatnam, in Partial fulfillment for the Award of

Degree of

MASTER OF BUSINESS ADMINISTRATION

ByMr. S. SRINIVASA RAO

Under the guidance of

Mrs. LUBZA NIHAR. M.Com.M.Phil.,

FACULTY MEMBER

DEPARTMENT OF MANAGEMENT STUDIES PYDAH COLLEGE (P.G.COURSES)(Affiliated to Andhra University)

VISAKHAPATNAM2003-2005

CERTIFICATE

This is to certify that the project entitled “BRAND

AWARENESS TOWARDS SANTRO with Reference to AYS

HYUNDAI AUTOMOBILES PVT. LTD., VISAKHAPATNAM”

is a bonafide work done by Mr. S. SRINIVASA RAO in

partial fulfillment of her MASTER OF BUSINESS

ADMINISTRATION, Department of Management Studies,

Pydah College of P.G. Courses, Affiliated to Andhra

University.

Place : Visakhapatnam

Date : Mrs. LUBZA NIHAR Faculty Member

CONTENTS

Page No.

CHAPTER – 1 1-10

Introduction Importance Scope Research Methodology Object Limitations

CHAPTER – 2 11-36

INDUSTRY PROFILE History of the Automobiles Automobiles History in World Scenario Automobiles History in Indian Scenario Automobiles History 1967

CHAPTER – 3 37-54

COMPANY PROFILE History in construction field Hyundai motor India Limited

CHAPTER – 4 55-67

Theoretical Frame Work

CHAPTER – 5 68-91

Data Analysis and Interpretation

CHAPTER – 6 92-95

Summary, Findings & Suggestions

CHAPTER – 7 96-98

Annexure

CHAPTER – 8 99

Bibliography