A COMPARATIVE STUDY BETWEEN

MARUTI AND TATA

1

EXECUTIVE SUMMERY

2

EXECUTIVE SUMMERY

The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent

amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has

been contributing to the automobile market to a great extent.

Many foreign companies have been investing in the Indian Automobile

Market in various ways such as technology transfers, joint ventures, strategic

alliances, exports, and financial collaborations. The auto market in India can

boast of attractive finance schemes, increasing purchasing power, and launch of

the latest products.

Total sales of major car manufacturers in India registered a figure of 0.674

million units at the end of March, 2007. The number of car exports in India was

39,295 units. General Motors, Maruti, and TATA MOTORS accounted for 60

percent of the market sales at the end of April, 2007. There has been an increase

in the purchase of motorcycles and cars both, in the rural as well as urban areas.

Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sale is

more than 50% of care of Indian car market. But now it is getting a good

competition with other new car company and foreign companies and its sales is

going down because other car companies are trying to present different types of

new car in different segment. So in our study in we had tried to study Maruti

Suzuki segmentation of cars and its sales trend and its effect on customer. This

project is all about segmentation and sales trend study of Maruti Suzuki. Through

our study we are trying to analyze the customer demand in different segments

and advancement required in Maruti’s segmentation. We are also analyzing

Maruti Suzuki sales trend. We had visited different dealers of Maruti Suzuki in

pune and asked some question and based on that we are tying to analyze the

data and sales trend of Maruti Suzuki. We had also collected some secondary

3

data of different study done on Maruti Suzuki and based on that we are trying to

present the sales trend analysis of Maruti Suzuki.

And if we talk about TATA detailed analysis of the company shows that the

company has had a strong fundamental as well as a strong market performance

over the years. Given the economic and the industry environment (improving

outlook for the CV industry) TATA Motors would be a key beneficiary. While a

pick-up in its CV volumes is evident, operating leverage and cost saving

initiatives will improve margins.

On an average more than 73% people feel that the prices are affordable whereas

12% do not agree, 74% believe that attractive discounts are offered whereas

26% are not satisfied with the discounts offered. 20% said that the test drives are

not offered and 15% said that post sales follow ups are not done regularly

whereas 85% said that they were done regularly but people feel that it is the

people’s car as it is satisfactory on all other parameters: knowledgeable sales

persons , employees spent enough time before and during sales, display of

merchandise is attractive, availability of product, variety of merchandize, vehicle

in good condition, prices are affordable, attractive discounts are offered, décor of

the waiting area is pleasing, responds to complaints quickly, service at TATA

Motors service station is excellent, careful with personal information and is value

for money . The overall opinion about TATA Motors is very good.

4

THE

CAR MARKET

OF INDIA

5

THE CAR MARKET OF INDIA

Indian Car Market attained a huge volume over the years with the increase in the

opportunity for new investments in the manufacturing of cars in India. The increasing

GDP rate, the rising per capita income, growing population and high ownership capacity

led to the boom in the Indian Car Market.

Causes for the boom-

From the last 15 years due to the liberalization of the Indian economy the entire market

scenario have undergone a change with the rich growing richer with time. Moreover, the

rise in the income level, change in the general lifestyle, increase in foreign traveling and

the easy accessibility of car finance on the basis of affordable installments and interest

rates have been the main driving forces behind the flourishing Indian Car Market.

Car Manufacturers In India-

Once the most popular car dominating the Indian Car Market was the Ambassador, till

the Indian car maker Maruti in the collaboration with the Japanese car giant Suzuki

brought a change in the Indian Car Market. However, today, there are numerous car

companies with new models coming up everyday in the car market of India. Some of the

leading brands are like, Hindustan Motors, Reva Electric Car Co., Daimler Chrysler India

Private Ltd, Fiat India Private Ltd., Ford India Ltd., General Motors India, TATA

MOTORS Siel Cars India Ltd., Hyundai Motors India Ltd.,Toyota Kirloskar Motor Ltd.

and Skoda Auto India Private Ltd.

Luxury and super luxury car market-

In the Indian Car Market demand for luxury and super luxury cars are increasing

continuously. Their attractive designs and brand names are the main reasons for the

growing need among many Indians who can afford these cars. Several luxury models are

to be launched in India in the coming years. As a result Indian Car Market is no longer

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alien to the luxury car companies like Mercedes Benz, Ferrari, Aston Martin and Rolls-

Royce.

Small car market-

However, it is the small car segment which still rules the Indian Car Market. During

2006-07, over 7.5 lakh compact cars were sold, with total sales record being around 1.2

million. Taking into account the bustling business in the small car sector in the car market

of India, TATA MOTORS Siel Cars has planned to introduce an entry level compact car,

in competition with the small cars like Hyundai Santro, Maruti Wagon R, Zen Estilo and

Chevrolet Spark. Another company, Skoda Auto India Private Ltd., announced the

launching of their first new small car model Skodafabia, in the car market of India this

year.

Governmental strategies:

The Government of India have taken some initiatives like the liberalizing the foreign

exchange and equity regulations, relaxing the tariffs on imports and redesigning the

banking policies which have boosted the Indian Car Market to a great extent. Thus, the

demand for all types of cars from luxurious models, SUVs to mini-cars have reached a

height in the Indian Car Market.

Future prospects-

The attractive prospects of the Indian Car Market have prepared the ground for a large

number of multi-national automobile companies from Japan, U. S. A., and Europe to

come here and work in collaboration with the Indian firms. It is expected that with this

growth rate of the Indian Car Market, it will be the third largest automobile market of the

world by 2030 after China and the US.

7

INTRODUCTION

TO

THE COMPANY

8

INTRODUCTION TO THE COMPANY

TATA MOTORS

Tata is a rapidly growing business group based in India with significant

international operations. Revenues in 2007-08 are estimated at $62.5 billion

(around Rs251,543 crore), of which 61 per cent is from business outside India.

The Group employs around 350,000 people worldwide. The Tata name has been

respected in India for 140 years for its adherence to strong values and business

ethics. The business operations of the Tata Group currently encompass seven

business sectors:

communications and information technology, engineering, materials, services,

energy, consumer products and chemicals. The Group’s 27 publicly listed

enterprises have a combined market capitalization of some $60 billion, among

the highest among Indian business houses, and a shareholder base of 3.2

million. The major companies in the Group include Tata Steel, Tata Motors, Tata

Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian

Hotels and Tata Communications.

The Group’s major companies are beginning to be counted globally. Tata Steel

became the sixth largest steel maker in the world after it acquired Corus. Tata

Motors is among the top five commercial vehicle manufacturers in the world and

has recently acquired Jaguar and Land Rover. TCS is a leading global software

company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and

China, besides India. Tata Tea is the second largest branded tea company in the

world, through its UK-based subsidiary Tetley. Tata Chemicals is the world’s

second largest manufacturer of soda ash. Tata Communications is one of the

world’s largest wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group

is also gaining international recognition. Brand Finance, a UK-based consultancy

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firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst

the Top 100 brands in the world. Businessweek ranked the Group sixth amongst

the World’s Most Innovative Companies. And the Reputation Institute, USA,

recently rated it as the World’s Sixth Most Reputed Firm.

Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired by

the spirit of nationalism. The Group pioneered several industries of national

importance in India: steel, power, hospitality and airlines. In more recent times,

the Tata Group’s pioneering spirit has been showcased by companies like Tata

Consultancy Services, India’s first software company, which pioneered the

international delivery model, and Tata Motors, which made India’s first

indigenously developed car, the Indica, in 1998 and recently unveiled the world’s

lowest-cost car, the Tata Nano, for commercial launch by end of 2008. The Tata

Group has always believed in returning wealth to the society it serves. Twothirds

of the equity of Tata Sons, the Tata Group.s promoter company, is held by

philanthropic trusts which have created national institutions in science and

technology, medical research, social studies and the performing arts. The trusts

also provide aid and assistance to NGOs in the areas of education, healthcare

and livelihoods. Tata companies also extend social welfare activities to

communities around their industrial units. The combined developmentrelated

expenditure of the Trusts and the companies amounts to around 4 per cent of the

Group’s net profits.

Going forward, the Group is focusing on new technologies and innovation to

drive its business in India and internationally. The Nano car is one example, as is

the Eka supercomputer (developed by another Tata company), which in 2008 is

ranked the world’s fourth fastest. The Group aims to build a series of world class,

world scale businesses in select sectors. Anchored in India and wedded to its

traditional values and strong ethics, the Group is building a multinational

business which will achieve growth through excellence and innovation, while

balancing the interests of its shareholders, its employees and wider society.

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CORE VALUES OF TATA

At the Tata Group our purpose is to improve the quality of life of the communities

we serve. We do this through leadership in sectors of national economic

significance, to which the Group brings a unique set of capabilities. This requires

us to grow aggressively in focused areas of business. Our heritage of returning to

society what we earn evokes trust among consumers, employees, shareholders

and the community.

This heritage is being continuously enriched by the formalization of the high

standards of behavior expected from employees and companies. The Tata name

is a unique asset representing leadership with trust. Leveraging this asset to

enhance Group synergy and becoming globally competitive is the route to

sustained growth and long-term success.

FIVE CORE VALUES

The Tata Group has always sought to be a value-driven organization. These

values continue to direct the Group’s growth and businesses. The five core Tata

values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency.

Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for

our colleagues and customers around the world, and always work for the benefit

of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards

in our day-today work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with

our customers and partners around the world, building strong relationships based

on tolerance, understanding and mutual cooperation.

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Responsibility: We must continue to be responsible, sensitive to the countries,

communities and environments in which we work, always ensuring that what

comes from the people goes back to the people many times over.

TATA MOTORS LIMITED

The largest passenger automobile and commercial vehicle manufacturing

company of India Tata Motors Limited, was formerly called TELCO (TATA

Engineering and Locomotive Company), has its headquarters in Bombay, now

Mumbai, India. Established in 1945, listed on the New York Stock Exchange in

2004 has created Rs. 320 billion wealth and was one of the top 10 wealth

creators in India, With manufacturing facilities in the towns of Jamshedpur,

Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by

Ratan Tata under the flagship company known as Tata and sons group. He

commands 22000 employees working in three plants as well as other regional

and zonal offices across the length and breadth of India. Tata motor’s passenger

cars still need to reach acceptable international requirements. The company

commands an imposing 65% share of the domestic commercial vehicle market

and is trying to modernize this segment. The financial business of Tata motors

was separated into a subsidiary company in sep. 2006, where it recorded a

strong financial performance during the last 5 year period. From year 2003-2007,

the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525

million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at

the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They

are offering one ordinary share valued at Rs. 340 every six shares expecting to

net Rs. 2.90 Crores, the so called “A” share would have different voting and

dividend rights, for every such 6 shares held at a face value of 305 would raise

Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the

short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of

jaguar and Land Rover from their principle “The Ford Motor Company’s”.

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It is also in talks with private equity funds to offload 25% of stake in each of the

following 6 unlisted group units, they are Tata Daewoo commercial vehicle

company, HV transmissions, Tata motors finance, Tata technologies and TELCO

construction equipment, the sales of the stakes would possible conclude by June

2009, helping it to raise further funds for this acquisition, earlier in July it sold

24% stake in an Auto component unit to a group firm and booked a profit of Rs.

110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS. 486

crores to Tata Sons, the holding company of whole Tata group firms. "The

Company aims to monetize a part of its funds through a phased divestment of

certain investments preferably as inter-group sales wherever possible at current

market prices in the coming six to eight months," the money that will be released

from these investments will become a part of the capital to be lifted for repayment

of the bridging loan taken for the Jaguar- Land Rover acquisition. Taken in March

2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March

from a consortium of banks to finance the JLR accusation and its expansion

plans Since the rights issue was announced on 28th may its share value has

fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the

bench mark index gained 3.8% to end at 15, 049.86 points.

The Analysts say that, this is a strategic move taken by Tata Motors because it is

allowing the company to make a lot of profit even when the market is in the

financial pressure allows Tata sons to raise its wager in group companies. If the

company will follow the above mentioned trends then possibly it can raise its

finances in a low liquidity and high interest rate set-up.

13

MARUTI SUZUKI

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading

four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation

of Japan holds a majority stake in the company. It was the first company in India

to mass-produce and sell more than a million cars. It is largely credited for having

brought in an automobile revolution to India. It is the market leader in India. On

17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited.

The company's headquarters remain in Gurgaon, near Delhi.

Maruti Suzuki is one of India's leading automobile manufacturers and the

market leader in the car segment, both in terms of volume of vehicles sold and

revenue earned. Until recently, 18.28% of the company was owned by the Indian

government, and 54.2% by Suzuki of Japan. The Indian government held an

initial public offering of 25% of the company in June 2003. As of May 10, 2007,

Govt. of India sold its complete share to Indian financial institutions. With this,

Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though

the actual production commenced in 1983. Through 2004, Maruti has produced

over 5 Million vehicles. Marutis are sold in India and various several other

countries, depending upon export orders. Cars similar to Marutis (but not

manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South

Asian countries.

The company annually exports more than 30,000 cars and has an

extremely large domestic market in India selling over 500,000 cars annually.

Maruti 800, till 2004, was the India's largest selling compact car ever since it was

launched in 1983. More than a million units of this car have been sold worldwide

so far. Currently, Maruti Alto tops the sales charts.

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Due to the large number of Maruti 800s sold in the Indian market, the term

"Maruti" is commonly used to refer to this compact car model. Till recently the

term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of

Japan, has been the leader of the Indian car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and

Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed capacity

of 350,000 units per annum. The Manesar facilities, launched in February 2007

comprise a vehicle assembly plant with a capacity of 100,000 units per year and

a Diesel Engine plant with an annual capacity of 100,000 engines and

transmissions.

Manesar and Gurgaon facilities have a combined capability to produce over

700,000 units annually. More than half the cars sold in India are Maruti cars. The

company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2

per cent of Maruti. The rest is owned by the public and financial institutions. It is

listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were

exported. In all, over six million Maruti cars are on Indian roads since the first car

was rolled out on December 14, 1983.

Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800,

for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and

luxury SUV, Grand Vitara.

Suzuki Motor Corporation, the parent company, is a global leader in mini

and compact cars for three decades. Suzuki’s technical superiority lies in its

ability to pack power and performance into a compact, lightweight engine that is

clean and fuel efficient.

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Maruti is clearly an “employer of choice” for automotive engineers and

young managers from across the country. Nearly 75,000 people are employed

directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it

has been rated (by customers)first in customer satisfaction among all car makers

in India for seven years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a

minor partner, to make a people’s car for middle class India. Over the years, the

product range has widened, ownership has changed hands and the customer

has evolved. What remains unchanged, then and now, is Maruti’s mission to

motorize India.

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OBJECTIVE

OF THE

STUDY

17

OBJECTIVE OF THE STUDY

The research project is mainly divided into two parts first one is study about

segmentation of cars and its market and the second is comparision between Tata Motors

and Maruti Suzuki.

The subjects under these two parts are

1. General study about segmentation of cars and its market

a. To study about car market of India.

b. To study about segmentation of car on different basses

c. To study about Tata Motors and Maruti Suzuki.

2. comparision between Tata Motors and Maruti Suzuki.

a. Study of swot matrix of these comapnies.

b. Study of marketing strategy of these company

The study will end with a conclusion giving a reflection of whole project and

recommendations on the basis of data findings.

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SCOPE

OF

THE STUDY

19

SCOPE OF THE STUDY

This project will be very helpful to us to know

The TATA MOTORS

The MARUTI SUZUKI

The marketing strategy of bothe the companies

This project will be an information guide to the company for understanding the marketing

trends of Maruti and TATA.

20

SEGMENTATION

OF

CAR

21

Car classification

Car classification is subjective since many vehicles fall into multiple categories or do

not fit well into any. Not all car types are common in all countries and names for the

same vehicle can differ by region. Furthermore, some descriptions may be interpreted

differently in different places. Broadly speaking, there are a set of classifications which

are widely understood in North America, and another set which are somewhat understood

in English-speaking contexts in Europe. Some terms borrowed from non-English

languages may have different meanings when used in their native language.

Classification systems

The following are the most commonly used classifications. Where applicable, the

equivalent Euro NCAP classifications are shown. Car rental companies often use the

ACRISS Car Classification Code. The United States Environmental Protection Agency

(US EPA) has another set of classification rules based on interior passenger and cargo

volumes. A similar set of classes is used by the Canadian EPA. In Australia, the Federal

Chamber of Automotive Industries publishes its own classifications.

Car classification

American

English

British

EnglishSegment Euro NCAP Examples

MicrocarMicrocar,

Bubble car -  - BMW Isetta, Smart Fortwo

 - City carA-

segmentSupermini

Daewoo Matiz, Renault

Twingo, Toyota Aygo, VW

Lupo

Subcompact

carSupermini

B-

segment

Hyundai Accent, Ford Fiesta,

Opel Corsa, Suzuki Swift

Compact car Small family C- Small family Ford Focus, Toyota Corolla,

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car segment car Opel Astra, VW Golf

Mid-size carLarge family

car D-

segment

Large family

car

Ford Mondeo, Opel Vectra,

Toyota Avensis, VW Passat

Entry-level

luxury car

Compact

executive car

Audi A4, BMW 3 Series,

Mercedes C-Class, Volvo S60

Full-size car

Executive carE-

segment

Executive

car

Ford Crown Victoria, Holden

Commodore, Opel Omega,

Chrysler 300C

Mid-size

luxury car

Audi A6, BMW 5 Series,

Jaguar XF, Mercedes E-Class

Full-size

luxury carLuxury car

F-

segment -

Audi A8, BMW 7 Series,

Jaguar XJ, Mercedes S-Class

Sports car Sports car

S-

segment

 -Chevrolet Corvette C6, Porsche

911

Grand tourer Grand tourer  -Jaguar XK, Maserati

GranTurismo

Supercar Supercar  -Bugatti Veyron, Ferrari Enzo,

Lamborghini Gallardo

Convertible Convertible  -Mercedes CLK, Volvo C70,

VW Eos

Roadster RoadsterRoadster

sports

Audi TT, BMW Z4, Porsche

Boxster, Lotus Elise

 -Leisure

activity vehicle

M-

segment

Small MPV Peugeot Partner, Škoda

Roomster

 - Mini MPVOpel Meriva, Fiat Idea, Ford

Fusion

Compact Compact Mazda5, Opel Zafira, Renault

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minivanMPV, Midi

MPVScénic, VW Touran

Minivan Large MPV Large MPVFord Galaxy, Toyota Previa,

Renault Espace

Mini SUV Mini 4x4

J-

segment

Small Off-

Road 4x4

Daihatsu Terios, Mitsubishi

Pajero iO , Suzuki Jimny

Compact SUV Compact 4x4

BMW X3, Ford Escape, TATA

MOTORS CR-V, Subaru

Forester, Toyota RAV4

 - Coupé SUV  -Isuzu VehiCROSS, SsangYong

Actyon, BMW X6

Mid-size SUV

Large 4x4Large Off-

Road 4x4

Ford Explorer, BMW X5, Jeep

Grand Cherokee, VW Touareg

Full-size SUV

Cadillac Escalade, Chevrolet

Suburban, Range Rover, Toyota

Land Cruiser

Pickup truck Pick-up  - Pick-upFord F-150, Mitsubishi

Triton/L200, Nissan Navara

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-

organized research plan, it is impossible to complete the project and reach to any

conclusion. The project was based on the survey plan. The main objective of survey was

to collect appropriate data, which work as a base for drawing conclusion and getting

result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic behind the

methods used in the context of a research study and it explains why a particular method

has been used in the preference of the other methods

RESEARCH DESIGN

A Research Design is the framework or plan for a study which is used as a guide in

collecting and analyzing the data collected. It is the blue print that is followed in

completing the study. The basic objective of research cannot be attained without a proper

research design. It specifies the methods and procedures for acquiring the information

needed to conduct the research effectively. It is the overall operational pattern of the

project that stipulates what information needs to be collected, from which sources and by

what methods.

Types of research is: Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are undertaken

in many circumstances when the researches is interested to know the characteristic of

certain group such as age, sex, education level, occupation or income. A descriptive study

may be necessary in cases when a researcher is interested in knowing the proportion of

people in a given population who have in particular manner, making projections of a

certain thing, or determining the relationship between two or more variables. The

objective of such study is to answer the “who, what, when, where and how” of the subject

26

under investigation. There is a general feeling that descriptive studies are factual and very

simple. This is not necessarily true. Descriptive study can be complex, demanding a high

degree of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in its

approach, but a descriptive study in contrast tends to be rigid and its approach cannot be

changed every now and then. It is therefore necessary, the researcher give sufficient

thought to framing research.

Questions and deciding the types of data to be collected and the procedure to be used in

this purpose. Descriptive studies can be divided into two broad categories: Cross

Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample

of elements from a given population. Thus, it may deal with household, dealers, retail

stores, or other entities. Data on a number of characteristics from sample elements are

collected and analyzed. Cross sectional studies are of two types: Field study and Survey.

Although the distinction between them is not clear- cut , there are some practical

differences, which need different techniques and skills. Field studies are ex-post-factor

scientific inquiries that aim at finding the relations and interrelations among variables in a

real setting. Such studies are done in live situations like communities, schools, factories,

and organizations.

Another type of cross sectional study is survey result, which has been taken by me. A

major strength of survey research is its wide scope. Detail information can be obtained

from a sample of large population .Besides; it is economical as more information can be

collected per unit of cost. In addition, it is obvious that a sample survey needs less time

than a census inquiry. Descriptive research includes survey and fact finding enquiries of

different kinds of the major purpose. Descriptive research is description of the state of

affairs, as it exists at present. The main characteristic of this method is that the researcher

has no control over the variables; he can only report what has happened or what is

happening. The methods of research utilized in descriptive research are survey methods

of all kinds including comparative and co relational methods. The reason for using such

27

needs to be flexile in its approach, but a descriptive study in contrast tends to be rigid and

its approach cannot be changed ever now and then.

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is

defined as data that is collected from original sources for a specific purpose. Secondary

data is data collected from indirect sources. (Source: Research Methodology, By C. R.

Kothari)

PRIMARY SOURCES

These include the survey or questionnaire method, telephonic interview as well as the

personal interview methods of data collection.

SECONDARY SOURCES

These include books, the internet, company brochures, product brochures, the company

website, competitor’s websites etc, newspaper articles etc.

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SAMPLING

Sampling refers to the method of selecting a sample from a given universe with a view to

draw conclusions about that universe. A sample is a representative of the universe

selected for study.

SAMPLE SIZE

The sample size for the survey conducted was 150 respondents. This sample size was

taken on 95% confidence level and 6 significant level.

SAMPLING TECHNIQUE

Definite sampling technique was used in the survey conducted

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains question

that the researcher wishes to ask his respondents which is always guided by the objective

of the survey.

Pie chart:

This is very useful diagram to represent data , which are divided into a number of

categories. This diagram consists of a circle of divided into a number of sectors, which

are proportional to the values they represent. The total value is represented by the full

create. The diagram bar chart can make comparison among the various components or

between a part and a whole of data.

Bar chart:

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This is another way of representing data graphically. As the name implies, it consist of a

number of whispered bar, which originate from a common base line and are equal widths.

The lengths of the bards are proportional to the value they represent.

Preparation of report:

The report was based on the analysis and presented with the findings and suggestions.

The sample of the questionnaires is attached with the report itself.

30

MARKETING

ANALYSIS

OF

TATA MOTORS

AND

MARUTI SUZUKI

31

SWOT ANALYSIS

32

SWOT OF TATA MOTORS

STRENGTHS

Tata Motors excels when it comes to innovation through intensive

research and development. Their ability to make the least expensive car on the

market, the Nano which will retail for $2,500, is far beyond what any other car

dealership has created. This innovation gives Tata Motors their main competitive

advantage. Tata Motors makes everything from tractor-trailers to the world’s

least expensive car. This product diversity grants them a competitive advantage

over their competitors because they can satisfy more markets and customer

needs. Another strength that Tata Motors possesses is high corporate

responsibility. They donate a portion of their profits from stock increases towards

a specific charity. This highlights Tata Motors overall desire for community

improvement while also emphasizing Tata Motors’ high morals and values which

is something money can not buy.

Tata Motors is also a very eco-friendly company. One of their goals is to

produce an emission friendly car, and in 2000 Tata Motors launched the first

compressed natural air bus. This air bus requires the owner to plug the car into a

standard electric plug for four hours to fill the air tanks. This brought the concept

of an “air-car” to reality and the name for this compressed natural air car is

“OneCAT.” OneCAT has no gas costs or fossil fuel emissions which makes it a

very attractive car for the more mature markets but also the upper classes in

developing countries at this point. It is also a great car to have in highly

populated countries, such as China and India, because pollution with its adverse

33

effects is a very large concern. OneCAT also is more efficient that any other

present Hybrid car, so when inventors think they have the best product out on the

market, they actually do not. There will always be something else to invent or

improve on and Tata Motors is a prime example of that.

Tata Motors is unique in a way in which when it buys a company. Tata

Motors keeps the original management of that company intact. The company

that Tata Motors purchases will look exactly the same in terms of management

and organizational structure as if it was never purchased by Tata Motors.

WEAKNESSES

There are strings attached with every new invention and improvement on

products. These strings are Tata Motors weaknesses and what other groups

perceive as their weaknesses. One weakness that Tata Motors faces is its

inability to meet safety standards. Although they have made the most

inexpensive car out on the market, it has yet to pass all the safety standards

which is a legal factor. Some consumers and pessimists inquire as to how Tata

Motors can make such a cheap car and withstanding a car accident or not just

falling apart after hitting something once. Pessimistic people also want to believe

that car manufactures are already doing everything they can to keep costs low

for the consumer, and if that is the case, then putting the cheapest car out on the

market automatically questions if it is safe to drive.

Tata Motors only have been making passenger cars for the approximately

last ten years. This can be viewed as a weakness from a customer standpoint

since a decade does not seem like a lot to consumers and therefore they will

34

think that Tata Motors is inexperienced car manufacturing. Consumers will

wonder how a car manufacturer can be in the market for 10 years and produce

the cheapest car out on the market. How can Tata Motors manufacture such a

cheap car that meets emission and safety standards being so young? This

causes consumers to be skeptical.

Another weakness that Tata Motors faces is within its domestic market.

Car sales in India are less than 1 million annually. This draws a problem

because Tata Motors may not get the sales that the company hopes for and how

can they sell cars to people who are not buying cars?

The new and innovative OneCAT still has some rough spots that need to

be worked out and one of them is that it has pollutant emissions and greenhouse

gas emissions from the generation of electricity used to compress the air. So

although it is marketed as being emission free, it technically is not and this is

another weakness. Also, OneCAT only goes 62 miles per hour for 56 miles in an

urban cycle. This is not very far and Tata Motors will have to improve on this

weakness as well as the emission weakness in order to draw more comsumers

to this new automobile.

OPPORTUNITIES

Tata Motors has already opened the doors for many new and innovative

ideas, but not only for their company, but their competitors as well which could

turn into a threat. One of the major opportunities that Tata Motor faces is that as

of right now 90 percent of China and India’s adult population do not own cars,

partly because cars are costly and require more expenses after purchased. So

35

the market for a low-priced car is huge which benefits Tata Motors perfectly since

they produce the lowest priced car on the market. This is a huge opportunity for

Tata Motors because if they can get their feet into that market of people that do

not have cars because they cannot afford them, then they will make large profits

down the road. China’s total car sales are estimated at over 8 million dollars

annually and they were the world’s second largest car market in 2006. China’s

government forecasts that demand for cars will top 20 million by 2020. With Tata

Motors in the market with the cheapest car, China’s demand for cars will

probably increase even more significantly which will in turn increase sales for

Tata Motors.

Japan, North America, and Europe automobile sales went up over the

years because of demand for smaller cars increased. This demand for smaller

cars is a great window of opportunity for Tata Motors because not only are their

cars small, but they are cheap and environmentally friendly as well. Once people

in these countries get Tata Motor automobiles then their automobile sales will

continue to rise.

As of March 2008 Tata Motors finalized a deal with Ford Motor Company

to acquire the British businesses, Jaguar Cars and Land Rover. This is a huge

opportunity for Tata Motors since they will acquire the large knowledge base and

technologies for producing and marketing luxury vehicles. This acquisition helps

them dive into the more mature markets in Japan, Europe and the U.S. The

knowledge transfer from these two companies will greatly improve Tata Motors

36

ability to continue to grow and flourish in both developing and developed market

segments.

THREATS

The obvious threat to Tata Motors is intellectual property rights. Tata

invented the cheapest car on the market and every automobile manufacturer

wants to know how Tata did it. Headhunters are soon going to find out this

valuable information and make it available to their own company. This is a huge

threat to Tata Motors because at first they had low competition, but once other

car manufactures find out how they invented such a low cost car, and then these

companies too will jump on board and design their own line of low cost

automobiles. On one hand this can be a threat, but on the other it may not affect

Tata Motors at all because people will still want to purchase their product since

they were the pioneers of all the excitement.

Other companies are starting to compete for some of this market share.

In fact, the Pakistan’s Transmission Motor company has built a basic four-

wheeler for only $2,100. This car is considerably cheap and the Pakistan

Transmission Motor company started exporting them to Sudan, Qatar, and Chile.

This is going to be the beginning of new emerging car manufactures that will be

producing low priced cars.

Another obvious threat is that dealing with gas prices. Gas prices

continue to rise and the Nano requires gas, but those who purchase the Nano

probably do not have a lot of money and so if gas prices keep jumping up then

that market of consumers will not be able to purchase the car. If OneCAT can be

37

made as cheaply as the Nano then that will benefit the consumers even more

because they will get a car that does not run on gas and it will be cheap to

purchase. On the other hand, gas company will not want OneCAT to hit the

market because there will be no profits to be made off the vehicle. Gas

companies have a lot of say over the automobile industry so this could be a big

threat.

Another main concern that Tata Motors faces is that cheap cars in India

will have an adverse effect on pollution and global warming because most of the

population will be able to afford the cars. With more people driving cars there will

be more accidents and deaths, as well as higher fossil fuels leaked into the

environment causing even more pollution then there already is.

Tata Motors is family owned and this can potentially cause problems down

the road because some family members can become greedy and money hungry.

Once they really start to rapidly grow then there may be family feuds and people

not pulling their part.

Another threat is the whole point of their cars being made with cheap

plastic. Are these cars durable? Will they hold together in a head-on collision?

As off August 2007 there was no further information on this topic though.

38

SWOT OF MARUTI SUZUKI

Strengths

Bigger name in the market

Trust of people

Established distribution and after sales service

Understanding of Indian market

Ability to Design product with differentiate features

Brand image

Experience in knowhow in technology

Low maintenance cost of vehicle

Weaknesses

Lack of experience in foreign market

Comparatively new in diesel car

People Resistant to upper segment model

Heavy import tariff on fully built imported model

Exports are not good

Global image is not big

Opportunities

Increased purchasing power of Indian middle class category

Government subsidy

Tax benefit

Prospective buyers in two wheeler segment

Great opportunities to grow with Swift and SX4 allover

Introduction of more diesel models. The diesel car market is growing.

Opportunities to grow by entering into bigger car markets

39

Already a market leader o great opportunity to be the king of the market in

every stage of industry.

Threats

Foreign companies entering into market; so a bigger threat from MNC’s.

To the market share as many bigger names are coming

Competition from second hand cars and Tata Nano

Threat from Chinese Manufactures

There is hardly any diesel model

Rs 1 lakh to 1.5 lakh car

40

Application of porter’s five force model:

Porter’s five force analysis is a framework for the industry analysis and business

strategy developed by Michael e .porter of Harvard business school in

1979.michael porter provided a framework that model an industry as being

influenced by five force. The strategic business manager seeking to develop an

edge over rival firms can use this model to better understand the industry context

in which the firm operates.

Porter has identified five competitive forces that shape every industry and every

market. these force determine the intensity of competition and hence the

profitability and attractiveness of an industry .the objective of the corporate

strategy should to modify these competitive force in a way that improve the

position of the organization .porter’s model support analysis of the driving forces

of the industry. Based on the information from the competitor’s survey and

41

analyzing the market this model can help to determine how to influence and to

exploit particular characteristics of their industry

bargaining power of suppliersasome

A Producing industry requires raw materials-labor, components, and other

supplies. This requirement leads buyer supplier relationship between the industry

and the firms that provide it the raw material used to create products suppliers, if

powerful, can exert an influence on the industry, such as selling raw material at a

high price to capture some of the industry’s profile. Other automobile industries in

the proximity of the suppliers may lead t shift of the business of the competitors.

Solution

Part standardization to avoid complexities in manufacture for the suppiers strong

supplier relationships to ensure a smooth production more than one supplier for

particular commodities

Bargaining power of customer

The power of buyers is the impact that customers have on producing industry

similar to the bargaining power of sppliers, bargaining power of the customers

determine how much pressure on margins and volumes

Since the industry is filled with so many option that are price competitive as wellit

is ultimately the customer who decides the fate of the company profits.

Solution

Increasing customer relationship management and creating customer

loyalty may help.

Introducing various schemes and promotional schemes i

Innovation and understanding the customer’s needs

Significant buyer switching cost

42

Attractive advertising and effective brand management

Threat of new entrants

The higher the competition in the industry, the easier it is for other companies to

enter the industry. In such a situation the new entrants can change the major

determinant of the market environment at any time

Today we can see that the automobile market is on a high with Tata coming up

with nano priced at rs 1 lakh and wheeler industry giants the bajaj coming into

the four wheeler industry. Nissan also plans to enter India in the a segment

category which will toughen the competition for other industries.

Solution

Innovation to capture untapped markets

Use Promotion and branding exercises

Use focused marketing efforts.

Threat of substitute

A threat from substitute exists if there is an alternative product with lower price or

having better performance. This could potentially attract significant proportion of

the market and hence reduce potential sales volume for existing players.

Similarly to the threat to new entrants, the threat of substitute is determines by

force like low brand loyalty of the customers

With a good transportation system developing in the country and increasing fuel

prices, people are switching to chapter mode of transportation. For example the

start of metro railways is a threat to potential profits of the companies. With

various companies coming up with cheaper substitute the company needs to be

ready for challenges.

43

Solutions:

Conduct regular customer survey to under stand the changing needs of

the market.

Making cost effective products to meet the demands of the industry

Effective market segmentation to ensure maximum profits.

Promote the product (projects) more and increase visibility.

Competitive rivalry between existing player

For most industries, this is the major determinant of the competitiveness of the

industry. sometimes rivals compete aggressively and sometimes rival compete in

non –price dimensions such as innovation, marketing etc.

The closest rivals of TATA MOTORS city where Toyota corolla altis, fiat linea in

terms of style, ford. fiesta in terms of value for money and Hyundai verma may

pose a serious competition to the TATA MOTORS city

A part of fiat linea having low power of 90ps as compared to 118ps of TATA

MOTORS city .it can become a tough challenger for the TATA MOTORS city

because of its styling ,features, a strong network with help of the Tata’s and

competitive price. For TATA MOTORS I am sure it will enjoy this challenger and

be the winner at the end.

Solution

Create product differentiation: improving features, implementing

innovation in the manufacturing process and in the product it self.

Changing price:raising or lowering price to gain a temporary advantage.

Creatively usinggg channel of distribution

44

45

Threat from the new players: IncreasingMost of the major global players are present in the Indian market; few more are expected to enter.Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital.Access to distribution network is important. Lower tariffs in post WTO may expose Indian companies to threat of imports.

Rivalry within the industry: HighThere is keen competition in select segments. (compact and mid size segments).New multinational players may enter the market.

Market strength of suppliers: LowA large number of automotive components suppliers.Automotive players are rationalizing their vendor base to achieve consistency in quality.

Market strength of consumers: IncreasingIncreased awareness among consumers has increased expectations. Thus the ability to innovate is critical.Product differentiation via new features, improved performance and after-sales support is critical.Increased competitive intensity has limited the pricing power of manufacturers.

Threat from substitutes: Low to mediumWith consumer preferences changing, inter product substitution is taking place (Mini cars are being replaced by compact or mid sized cars).

The critical issue facing the Indian passenger car industry is the attainment of

break-even volumes. This is related to the quantum of investments made by the

players in capacity creation and the selling price of the car. The amount of

investment in capacities by passenger car manufacturers in turn depends on the

production

strategies of the car manufacturers. Setting up integrated manufacturing facilities

may require higher capital investments than establishing assembly facilities for

semi knocked down kits or complete knocked down kits. In recent years, even

though the ratio of sales to capacity (an important indicator of the ability to reach

46

break-even volumes) of the domestic car manufacturers have improved, it is still

low for quite a few car manufacturers in India. India is also likely to increasingly

serve as the sourcing base for global automotive companies, and automotive

exports are likely to gain increasing importance over the medium term. However,

the growth rates are likely to vary across segments. Although the Mini segment is

expected to sustain volumes, it is likely to continue losing market share; growth in

the medium term is expected to be led largely by the Compact and Mid-range

segments. Additionally, in terms of engine capacity, the Indian passenger car

market is moving towards cars of higher capacity. This apart, competition is likely

to intensify in the SUV segment in India following the launch of new models at

competitive prices.

Maruti Suzuki is one of India's leading automobile manufacturers and the market

leader in the car segment, both in terms of volume of vehicles sold and revenue

earned. Until recently, 18.28% of the company was owned by the Indian

government, and 54.2% by Suzuki of Japan. The Indian government held an

initial public offering of 25% of the company in June 2003. As of May 10, 2007,

Govt. of India sold its complete share to Indian financial institutions. With this,

Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual

production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei

car which at the time was the only modern car available in India, its' only

competitors- the Hindustan Ambassador and Premier Padmini were both around

25 years out of date at that point. Through 2004, Maruti has produced over 5

Million vehicles. Marutis are sold in India and various several other countries,

depending upon export orders. Models similar to Marutis (but not manufactured

by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other

South Asian countries.

The company annually exports more than 50,000 cars and has an extremely

large domestic market in India selling over 730,000 cars annually. Maruti 800, till

47

2004, was the India's largest selling compact car ever since it was launched in

1983. More than a million units of this car have been sold worldwide so far.

Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling

in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term

"Maruti" is commonly used to refer to this compact car model. Till recently the

term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan,

has been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar

south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000

units per annum. The Manesar facilities, launched in February 2007 comprise a

vehicle assembly plant with a capacity of 100,000 units per year and a Diesel

Engine plant with an annual capacity of 100,000 engines and transmissions.

Manesar and Gurgaon facilities have a combined capability to produce over

700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a

subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of

Maruti. The rest is owned by the public and financial institutions. It is listed on the

Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were

exported. In all, over six million Maruti cars are on Indian roads since the first car

was rolled out on December 14, 1983.

Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa,

Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand

Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand

48

Vitara is imported from Japan as a completely built unit (CBU), remaining all

models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and

compact cars for three decades. Suzuki’s technical superiority lies in its ability to

pack power and performance into a compact, lightweight engine that is clean and

fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young

managers from across the country. Nearly 75,000 people are employed directly

by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has

been rated (by customers)first in customer satisfaction among all car makers in

India for nine years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor

partner to make a people's car for middle class India. Over the years, the product

range has widened, ownership has changed hands and the customer has

evolved. What remains unchanged, then and now, is Maruti’s mission to motorise

India.

Pressure started mounting on Indira and Sanjay Gandhi to share the details of

the progress on the Maruti Project. Since country's resources were made

available by mother to her son's pet project. A delegation of Indian technocrats

was assigned to hunt a collaborator for the project. Initial rounds of discussion

were held with the giants of the automobile industry in Japan including Toyota,

Nissan and Honda. Suzuki Motor Corporation was at that time a small player in

the four wheeler automobile sector and had major share in the two wheeler

segment. Suzuki's bid was considered negligible.

In the initial rounds of discussion the giants had their bosses present and in the

later rounds related to the technical discussions executives of these automobile

49

giants were present. Osamu Suzuki, Chairman and CEO of the company

ensured that he was present in all the rounds of discussion. Osamu in an article

writes that it subtly massaged their (Indian delegation) egos and also convinced

them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to

ensure the government about its sincerity on the project. Suzuki in return

received a lot of help from the government in such matters as import clearances

for manufacturing equipment (against the wishes of the Indian machine tool

industry then and its own socialistic ideology), land purchase at government

prices for setting up the factory Gurgaon and reduced or removal of excise tariffs.

This helped Suzuki conscientiously nurse Maruti through its infancy to become

one of its flagship ventu

50

DATA ANALYSIS

AND

INTERPRETATION

51

DATA ANALYSIS AND INTERPRETATION

The 3 most important feature people looking in a car

43

119

27

9

18

12

51

112

21

15

14

9

0 50 100 150

safety

look

interior

features

maintanance

music system

comfort

milage

price

brand

power

capacity

Indian car customers are not aware about the safety and power of car they are looking for

look of the car and fuel efficiency.

52

safety 43look 119interior 27features 9maintenance 18music system 12comfort 51mileage 112price 21brand 15power 14capacity 9

53

Currently the people are driving following cars

a. based on model

21

12

6

12

3

16

3

3

18

7

15

3

3

6

6

3

10

3

0 5 10 15 20 25

swift

honda city

sx4

zen

tata safari

wagon r

accent

tata indigo

santro

i-10

ms 800

opel

icon

a-star

civic

uva

alto

leana

54

swift 21TATA MOTORS city 12sx4 6zen 12tata safari 3wagon r 16accent 3tata indigo 3santro 18i-10 7ms 800 15opel 3icon 3a-star 6civic 6uva 3alto 10leana 3

55

b. Based on the company

86

18

6

28

12

maruti suzuki honda siel tata hyundai others

The figure shows that Maruti Suzuki is the master of today’s car market followed

by Hyundai and TATA MOTORS Siel.

maruti suzuki 86TATA MOTORS siel 18tata 6hyundai 28others 12

56

Satisfaction level with current car

52

67

22

6 3

0

10

20

30

40

50

60

70

level 5 level 4 level 3 level 2 level 1

Generally the customers are satisfied with their own current car

level 5 52level 4 67level 3 22level 2 6level 1 3

57

Top 4 mid segment brands in the customers view

144

100

132

116

7236

MARUTI HONDA HYUNDAI TATA FORD OTHERS

Maruti is most popular brand in the India flowed by Hyundai, Tata , TATA MOTORS

etc.

MARUTI 144TATA MOTORS 100HYUNDAI 132TATA 116FORD 72OTHERS 36

58

Price range of the car considered by customer

15

6927

27

12

2-4 lacks 4-6 lacks 7-10 lacks

10-15 lacks 15 and above

Maximum customer in India are looking for the car priced between 4 to 6 lacks.

2-4 lacks 154-6 lacks 697-10 lacks 2710-15 lacks 2715 and above 12

59

Customers are looking for following car as their new car

27

12

3

6

12

6

24

3

3

3

18

6

3

3

3

3

15

0 5 10 15 20 25 30

not any

verna

endavour

land rover

logan

accord

city

bmw

audi

lancer

swift

i-20

liena

altis

jaguar

inova

civic

This shows that most of the people are looking for city, civic and swift as there new car.

not any 27

60

verna 12endavour 3land rover 6logan 12accord 6city 24bmw 3audi 3lancer 3swift 18i-20 6liena 3altis 3jaguar 3inova 3civic 15

61

Source of information for purchasing a new car

39

18

1636

30

11

internet television auto magzine

dealer friend any other

Customers are influenced by internet, dealer and friends for information about car.

internet 39television 18auto magazine 16dealer 36friend 30any other 11

62

Influencer in the family for buying a new car

48

2127

27

12

15

self supose cildren parent friends others

Customers are influenced by family members for purchasing a new car

self 48suppose 21children 27parent 27friends 12others 15

63

Fuel preference for a car

67

49

34

petrol disel cng

Petrol is most preferred fuel for a car.

petrol 67diesel 49cng 34

64

News paper read by customers

72

34

12 9 11 12

0

10

20

30

40

50

60

70

80

times o

f india

hindus

tan tim

es

busin

ess s

tanda

rd

econ

omy tim

es

amar

ujala

dainik

jagra

n

Times of India and Hindustan times are most read news paper

times of india 72hindustan times 34business standard 12economy times 9amar ujala 11dainik jagran 12other 0

65

Top 3 TV channels watched by customers

0

2

4

6

8

10

12

14

16

18

ndtv

colors

sab

discovery

espn

star sports

ten sports

sony

zee

9x cnbc

Generally peoples are viewing the sports and news channel

ndtv 16colors 7sab 16discovery 12espn 18star sports 14ten sports 12sony 18zee 169x 12cnbc 9

66

Annual household income of customer

31

69

24

1610

1-2.5 lacs 2.5-5 lacs 5-7.5 lacs 7.5-10 lacs 10 lacs and above

In India the average annual income of the people are 2.5 to 5 lacks per annum.

1-2.5 lacs 312.5-5 lacs 695-7.5 lacs 247.5-10 lacs 1610 lacs and above 10

67

Importance of feature in a car at the time of buying

The answers are on the scale of 5 level of importance the results are the average of the

total.

00.5

11.5

22.5

33.5

44.5

5

value for money

brand

fuel economy

space and comfort

safety

engine power

service centers

interior

value for money 5brand 4fuel economy 4.5space and comfort 4safety 4.5engine power 4.5service centers 4interior 3.5

68

FINDINGS

AND

CONCLUSION

69

FINDINGS AND CONCLUSION

1. Indian car customers are not aware about the safety and power of car they are

looking for look of the car and fuel efficiency.

2. The figure shows that Maruti Suzuki is the master of today’s car market followed

by Hyundai and TATA MOTORS Siel.

3. Generally the customers are satisfied with their own current car

4. Maruti is most popular brand in the India flowed by Hyundai, Tata , TATA

MOTORS etc.

5. Maximum customer in India are looking for the car priced between 4 to 6 lacks.

6. This shows that most of the people are looking for city, civic and swift as there

new car.

7. Customers are influenced by internet, dealer and friends for information about

car.

8. Customers are influenced by family members for purchasing a new car

9. Petrol is most preferred fuel for a car.

10. Times of India and Hindustan times are most read news paper

11. Generally peoples are viewing the sports and news channel

12. In India the average annual income of the people are 2.5 to 5 lacks per annum.

70

BIBLIOGRAPHY

Books

1. Marketing management: analysis, planning, implementation, and control by Philip

Kotler - Business & Economics - 1988

2. Marketing Management by Philip Kotler, Kevin Keller - Business & Economics -

2008

3. Research methodology: a step-by-step guide for beginners by Ranjit Kumar -

Social Science - 2005

4. Research methodology by Douglas K. Detterman - Psychology - 1985

Web sources

1. www.managementparadise.com

2. www.wikipedia.org

3. www.google.co

71

Very much satisfies Not At all satisfies

5 4 3 2 1

ANNEXURE

Questionnaire

Dear/Respected Respondent,

1. The 3 most important features you look for in a car?

A. ................................................................

B. ................................................................

C. ………………………………………………………………

2. Which car do you use now? ..............................................

3. Your satisfaction level with your car.

4. Name Top 4 mid segment Brands.(in your view)

………………………………………………………………………………………

…………………………………………

5. What is the price range you would consider for a new car?

From [ ] to [ ] lacs

6. Is there a specific vehicle you are currently interested in?

.........................................................................................

7. Why do you like this vehicle?

.........................................................................................

8. For Buying a car you are more likely to get information from: Name one only

72

Internet [ ] Television [ ] Auto magazine [ ] Dealers [ ] Friends [ ]

Any Other [ ]

9. Who influence most in the family for buying car?

You [ ] Wife/Husband [ ] Children [ ] Parents [ ] Friends [ ] Any other

[ ]

10. You would prefer petrol/diesel/CNG

car? .......................................................................

11. Which Newspaper do you read regularly?

a) The Times of India [ ] b) The Hindustan Times [ ] c) Business Standard [ ]

d) The Economic Times [ ] e) Amar Ujala [ ] f) Dainik Jagran [ ] g) Any other [ ]

12. Which 3 TV Channel do you watch the most:

a) …………………………………………………………………..

b) ……………………………………………………………………

c) …………………………………………………………………….

13. What is the approximate annual income of your family (INR.)

a) 1lacs to 2.5 lacs [ ] b) 2.5lacs to 5 lacs [ ] c) 5lacsto 7.5lacs [ ] d) 7.5lacs to

10lacs [ ] e) 10lacs and above [ ]

14. ‘How important are the following features you consider for Buying a new Car’

On a Scale of 1 to 5 where,

(5= Must have; 4= High Priority; 3= Worth Considering; 2= Don’t Care; 1= Unwanted)

Price/Value for money …………………………………..

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Prestige/Status/Brand …………………………………..

Fuel Economy …………………………………..

Passenger Space and Comfort…………………………………..

Safety …………………………………..

Engine Power …………………………………..

Service Centres …………………………………..

Luxurious interior …………………………………..

Contact Details:

Name: - …………………………………………………….. Gender:

………………….

Age: - ……………………………………. Contact no:-…………………………..

E mail address: - …………………………………………………………………………

Current Occupation: - Student [ ] Service [ ] Business [ ] Any

other……………………….

Education: High School [ ] Intermediate [ ] Graduate [ ] Post Graduate [ ]

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