AMITY INTERNATIONAL BUSINESS SCHOOL AMITY UNIVERSITY, UTTAR PRADESH STUDY OF MARKETING STRATERGIES OF MAJOR CAR PLAYERS IN INDIA

IN THE LIGHT OF THE PLAYERS MARKET SHARES IN THE NCR REGION A TERM PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION- INTERNATIONAL BUSINESS
PREPARED BY: ACHIN AGARWAL NEHA PUROHIT BAQUAR TAHIR MITALI KUMAR UNDER THE GUIDANCE OF: MR. ARCHISMAN, FACULTY, AIBS

ACKNOWLEDGEMENT
Any attempt at any level cannot be satisfactorily completed wit o!t t e s!pport and "!idance of learned people# We wo!ld li$e to e%press immense "ratit!de to o!r respected mentor Mr# Arc isman for is constant s!pport and motivation t at as enco!ra"ed !s to come !p wit t is term paper and for clarifyin" o!r !n& endin" '!eries wit !tmost patience# We wo!ld li$e to t an$ all o!r respected fac!lties for "ivin" !s t e opport!nity to !nderta$e t is pro(ect and providin" wit necessary "!idelines from time to time# Last b!t definitely not t e least we wo!ld li$e to t an$ o!r family for providin" !s wit constant s!pport and for bearin" wit o!r late&ni" t wor$# We wo!ld also li$e to t an$ friends for ta$in" time to "o t ro!" t is pro(ect and e%pressin" t eir views and also providin" !s wit vital feedbac$)

(ACHIN AGARWAL) (NEHA PUROHIT) (BAQUAR TAHIR) (MITALI KUMAR)

DECLA*AT+ON
T is is to certify t at present report titled Study of Mar !t"#$ Strat!$"!% of Ma&or Car P'ay!r% "# I#d"a "# t(! L"%t of t(! P'ay!r% Mar !t S(ar!% "# t(! NCR R!$"o#) is based on ori"inal researc and as not been s!bmitted in part or w ole for any diploma or de"ree of any !niversity# T e wor$s of ot er a!t ors) w erever t ey ave been made !se of in t is st!dy) ave been d!ly ac$nowled"ed at relevant places#

(ACHIN AGARWAL)

(NEHA PUROHIT)

(BAQUAR TAHIR)

(MITALI KUMAR)

Table of Contents
3

E !"#$%&! S#''()* C+(,$!) I O&!)&%!Indian four wheeler industry Passenger vehicle production graph Market Segmentation M(./) P0(*!)1 V%1%/2 34:34:5 S$)#"$#)! /6 I27%(2 PV 1!8'!2$

M()#$% U7*/8 L$7. H*#27(% M/$/)1 L$7. H/27( '/$/)1 T($( M/$/)1 L$7. H%27#1$(2 '/$/)1

C+(,$!) II L%$!)($#)! S#)ve* C+(,$!) III P)/90!' S$($!'!2$ C+(,$!) IV R!1!()"+ O9.!"$%&!1 T*,! /6 )!1!()"+ "/27#"$!7 R!1!()"+ M!$+/7/0/8* Sample Size C+(,$!) V R!1#0$ : A2(0*1%1
4

C+(,$!) ; VI C/2"0#1%/2 F%27%281 S#88!1$%/21 B%90%/8)(,+*

in 2002-03 to 23 lakh units in 2007-0 reportin! a "#$% of 20&. 'he Indian economy has

A22! #)! I Q#!1$%/22(%)!

E,EC-T+.E /-MMA*0
Over the last five years, the production of four wheelers in India has increased from 9.3 lakh units in 2002-03 to

23 lakh units in 2007-0 reportin! a "#$% of 20&. 'he Indian economy has !rown at an annual rate of more than

Over the last five years the production of four wheelers in India has increased from 9.3 lakh units

!rown at an annual rate of more than & over the last five years and the industrial production has made an outstandin! contri(ution to this !rowth. #uto industry was licensed, controlled and restricted in the early years of independent India and had a limited contri(ution to the economy. )ut post delicensin! in *99* the industry has !rown at an avera!e rate of *7& . 'he industry currently contri(utes a(out +& of the $,- and it is tar!eted to !row five fold (y 20*. and account for over *0& of India/s $,-. #utomotive mission plan 0#1-2 e3pects the industry to reach a turnover of 4*+0-200 (illion in the ne3t ten years from the current 45+ (illion levels. 6ehicle manufacturer s are increasin!ly adoptin! an outward lookin! approach and e3plorin! new markets 7 territories, ran!in! from 1iddle 8ast, 8urope, 9outh #fr ica, #l!eria, :atin #merica, %ussia, etc. 83ports have increased immensely from 5,000 units in 2002-03 to 2 0,000 units in 2007-0 . "risis estimates the passen!er vehicle e3ports to cross 7 lakh units (y 20**-*2. 'his survey will help to know the se!mentation, positionin! and tar!etin! approach of various ma;or car players in India. 'he effect of various marketin! strate!ies can (e r eviewed. 'his will help in desi!nin! suita(le marketin! strate!y to reach more 7 more customers. # (usiness function is concerned with the formation of lon!-term o(;ectives and the development of plans to achieve them. $rowth 7 -rofit are the o(;ective of any (usiness or!ani<ation. $rowth is only possi(le when the product is successful in market. #n or!ani<ation should have well set and well- e=uipped strate!y for this purpose. 1arket research studies help in this matter a lot. 1arketers !et involved in the marketin! r esearch> this thinkin! is the paradi!m , a scale to creatin! a customer.

C1A2TE* 3 &O.E*.+EW
!"#$"I#%
&

India?s automobile sector consists of the passen!er cars and utility vehicles, commercial vehicle, two wheelers and tractors se!ment. 'he total market si<e of the auto sector in India is appro3imately %s +50 (illion and has (een !rowin! at around percent per annum for the last few years. 9ince the last four to five years, the two wheelers se!ment has driven the overall volume !rowth on account of the spurt in the sales of motorcycles. @owever, lately the passen!er cars and commercial vehicles se!ment has also seen a !ood !rowth due to hi!h discounts, lower financin! rates and a pickup in industrial activity respectively. 'he automobile industry is fairly concentrated, as in most of the se!ments two to three players have cornered a ma;or chunk of the total sales. Aor instance, in passen!er cars se!ment, 1B:, 'ata 1otors and @yundai 1otors control around + percent of the total annual sales. 9imilarly, in the two wheelers se!ment, the sales volumes of @ero @onda, )a;a; #uto and '69 1otors constitute around 0 percent of the total sales and in the commercial vehicles se!ment, the market leader 'elco controls around +. percent of the total annual sales. 'he auto components industry on the other hand is hi!hly fra!mented, thou!h there are dominant players in some of the critical se!ments.

Investment climate
$iven the hi!h !rowth e3pectations and a li(eral !overnment policy, the investment potential in the India auto sector is hu!e. "%I9 ICA#" is forecastin! a *2-*+& annual !rowth in the passen!er car sales, .- & in commercial vehicles and around *0& in two wheelers. 9everal passen!er car makers have already achieved near full capacity utili<ation and are e3pandin!. #lmost all the ma;or automobile manufacturers such as $1, Aord, ,aimler"hrysler, @onda, 'oyota, @yundai, and Aiat 0with the e3ception of 6olkswa!en, which is plannin! to set up manufacturin! shortly2 already have made si!nificant investments in India. In the ne3t 2-3 years, the passen!er vehicle industry is e3pected to see investments of more than %s 30 (illion. 9imilarly, two wheeler industries are e3pected to attract investment amountin! to %s *0 (illion. 'here has also (een a sur!e in e3ports of cars, utility vehicles and two wheelers. 'he e3pected !rowth in domestic sales and e3ports of vehicles also offers si!nificant opportunity for investors to invest in the auto ancillary industry. #lready several international suppliers such as ,elphi, 6isteon, '%D, Eohnson "ontrols, ,enso and ,ana, have set up manufacturin! facilities and are e3pandin! rapidly to serve not only the domestic market (ut also to supply to their !lo(al customers. #nother attractive area of investment for vehicle and parts makers is research and desi!n, to take advanta!e of India?s low cost advanta!e. @owever, investment in commercial vehicle manufacturin! looks relatively unattractive, !iven the current si<e and structure of the Indian market. %ecently, !overnment has li(erali<ed the investment norms for the auto sector. :ocal content re=uirements and e3port o(li!ations have (een scrapped, and minimum investment re=uirements also have (een diluted. Import duties on vehicles and parts have (een !radually comin! down and are e3pected to decline further in the ne3t two years. 9everal state !overnments also offer attractive incentives, such as sales ta3 rela3ations and concessional land, to potential investors. @owever, manufacture of certain components continues to (e reserved for the small-scale sector. 'his reservation is also e3pected to lift !radually over the medium term.
'

Outlook
'he e3pected rise in income levels, wide choice of models and easy availa(ility of finance at low interest rates will drive !rowth in passen!er cars se!ment, which is likely to (e over *2 percent per annum for the ne3t four to five years. 'wo wheelers !rowth is likely to mar!inally slow down, (ut still !row at an avera!e annual !rowth rate of around *0 percent. 'he commercial vehicles se!ment is likely to !row at a trend rate of .- percent driven mainly (y the increase in industrial and economic activity on account of the e3pected !rowth in the economy, thou!h annual !rowth rates may fluctuate widely with the cyclical ups and downs of the economy. 'ractor industry !rowth is likely to turnaround and post a !rowth in volumes in 2005-0+. @owever, it will post a moderate !rowth of around 5-+ percent annual !rowth rate over the medium term.

INDIAN FOUR WHEELER INDUSTRY

'he Aour Dheeler industry in India has not =uite matched up to the performance of its counterparts in other parts of the world. 'he primary reason for this has (een the all-pervasive re!ulatory atmosphere prevailin! till the openin! up of the industry in the mid-*990s. 'he various layers of le!islative #cts sheltered the industry from e3ternal competition for a lon!

time. 1oreover, the industry was considered low-priority as cars were thou!ht of as Funafforda(le lu3uryF. Initially in the post-li(erali<ation period, the automotive sector, especially the passen!er car se!ment, saw a (oom. 'he (uoyancy in the sector was derived primarily from economic vi(rancy, chan!es in $overnment policies, increase in purchasin! power 0especially of the upper middle class2, improvement in life styles, and availa(ility of car finance. 'he passen!er car industry was finally dere!ulated in *993, and many companies, (oth Indian and forei!n 0like ,aewoo, Aord, $eneral 1otors, and ,aimler"hrysler2, entered the market. @owever, the smooth sailin! was suddenly disrupted in the last =uarter of AG*99.. 'he automo(ile industry, which contri(uted su(stantially to industrial !rowth in AG*99., failed to maintain the same momentum (etween AG*997 and AG*999. 'he overall slowdown in the economy and the resultant slowdown in industrial production, political uncertainty and inade=uate infrastructure development were some of the factors responsi(le for the slowdown e3perienced (y the automo(ile industry. In AG2000, the sector e3perienced a turnaround, posted positive !rowth rates and witnessed the launch of many new models. )ut the spectacular !rowth in AG2000 was followed (y a decline in AG200* and only a mar!inal !rowth of 0.+& in AG2002.

PASSENGER VEHICLE PRODUCTION GRAPH

MUVs
'he 1B6 se!ment consists of vehicles that are suited to (oth rural and ur(an areas. In rural areas where the roads are usually (ad, these vehicles are used as !oods carriers and also for pu(lic transportation. Corthern and Destern India account for nearly two-thirds of the demand for 1B6. 9pecifically, in 9tates like %a;asthan, 1adhya -radesh, Bttar -radesh and 1aharashtra, the demand for 1B6s is the lar!est. 'here are three se!ments of (uyers for 1B6sH the private market, $overnment, and the ,efense. Bntil the *990s, the $overnment and ,efense se!ments accounted for the lar!est share of the market. 'he reduction in $overnment and defense spendin! since the *990s has su(stantially reduced sales to these two se!ments. 'his has pushed private sector purchases into !reater prominence. 'here are three su(-se!ments of the B6 I 1B6 se!mentH the hard-top, soft-top and pickup. 'he hard-top version consists of the hi!her-end 9ports Btility 6ehicles 09B6s2 that have (een present in the Indian markets since AG*999. Aollowin! the success of the hi!her-end 9B6s, the share of the hard top se!ment in total 1B6 sales has re!istered an increase. 9oft-top 1B6s, which are lar!ely dependent on sales in the rural and semi ur(an markets where the vehicles serve as modes of mass transportation 0ma3i ta3i2> have witnessed a contraction in volumes in recent years. 'he declinin! share of the soft-top su(-se!ment is attri(uta(le lar!ely to the
1*

increasin! acceptance of 9B6s as an alternative to soft-tops 0and even hi!her end-cars2. 'hose apart, soft-top sales have also (een affected (y a decline in rural income, increase in sales ta3 in some states, increase in diesel prices, enforcement of strict emission control norms, and restraints on the issue of licenses to use soft-top vehicles as rural ta3is.

Market Segmentation
Based on Fuel used: -etrol ,iesel Based on Engine Capacity: 00 cc J K*000 cc 0 1aruti 00, @yundai 9antro2

*000 cc J K*300 cc 0 1aruti 9wift, 'ata Indica2 *300 cc J K*+00 cc 0 Aord Aiesta, 1aruit 8steem2 *+00 cc - 2000 cc 0 "hevrolet Optra, 1aruti )aleno2 2000 cc L 0 9u<uki $rand 6itara, Aord 8ndeavour2 Based on Design of Car: "ompact 0 1aruti 00, @yundai 9antro2 "ompact -lus 01aruti 9wift, @yundai $et<2 9edan 0 @yundai #ccent, Aord Ikon2 -remium 9edan 0 Aord Aiesta, "hevrolet Optra2 9uper -remium 9edan 0 'oyota "orolla2 Btility 6ehicles 0 'oyota Innova, "hevrolet 'avera2

Ma(or 2layers
11

12

ision for t!e Future:

'he opportunity landscape for the Indian auto industry would encompass manufacture of vehicles and components for domestic sales, manufacture for e3ports 0(oth vehicles and components2, and e3port of services in areas such as desi!n, en!ineerin!, and (ack office operations. It is estimated that the total turnover of the automotive industry in India would (e in the order of B9, *22-*+9 (illion in 20*. 0a su(stantial increase from the si<e of B9, 35 (illion in 200.2. Implementin! #1- 200.-20*. would need an incremental investment in the order of B9, 3+50 (illion to come into Indian auto industry over the ne3t ten years 0200.-20*.2. It is anticipated that the (ulk of this investment will come from e3pansion of capacities (y e3istin! manufacturers operatin! in India and remainin! from !lo(al multinational corporations 01C"s2 seekin! to make India their manufacturin! (ase. "ompetition for attractin! investments in India would come from countries such as "hina and 'hailand.

ision Statement:
)ased on the a(ove scenario, the 6ision 9tatement for India?s automotive sector will (e as followsH M'o emer!e as the destination of choice in #sia for the desi!n and manufacture of automo(iles and automotive components. 'he output of India?s automotive sector will (e B9, *5+ (illion, contri(utin! to more than *0& of India?s $ross ,omestic -roduct and providin! employment to 2+ million persons additionally (y 20*.N.

13

Structure of Indian " segment

-assen!er vehicle industry is divided into three se!ments namely -assen!er 6ehicle 0-62 se!ment, Btility vehicle se!ment and 1ulti -urpose 6ehicle se!ment. -6 se!ment contri(utes to a(out 0& of the volume while rest 20& is divided (etween B6 and 1-6. Indian passen!er vehicle industry is hi!hly fra!mented especially if we compare it to two wheeler or commercial vehicles Industry. #lthou!h overall 1aruti is the clear market leader with a(out +0& of the market share and the second lar!est player have only one third of the share of 1aruti.

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MA*-T+ -D0OG LTD#

Company Snaps!ot:
Incorporated Ae(ruary *9 * Octo(er *9 2

!o"nt Vent#re A$ree%ent E&#"t' E%p(o'ee Stren$t) Fac"("t"es

+5.2& 9u<uki, Eapan, (alance with Other Ainancial Institution and -u(lic. 5993 of financial year 200.-07 $ur!aonH 3 vehicle assem(ly plants, 1anesarH * vehicle assem(ly plant @ead Office in Cew ,elhi, India %e!ional officesH *.

D"ese( Po*ertra"n P(ant 9u<uki -owertrain India :imited 09-I:2, Eoint 6enture (etween 9u<uki 1otor "orporation 70& 8=uity the rest is with 1aruti 9u<uki India :imited. !o"nt Vent#re S#+s"d"ar' Co%pan"es *+ Eoint 6enture companies, includin! 9u<uki -owertrain India :imited for component supply. Proposed In,est%ents t"(( -./. 'rue 6alueH for sale and purchase of pre-owned cars 1aruti InsuranceH for insurance of 1aruti vehicles 01aruti?s companies2 1aruti AinanceH for financin! 1aruti vehicles Net*or0 Reac) F"nanc"a( Year 1.2 .34 IC% 9000 "rores i.e. IC% 90 )illion, Gen 2+7 )illion 0 *Gen O 0.3+ %s2, 4 2.2+ )illion 0* 4 O %s 502 P 9ales 39 Outlets coverin! 22 cities $lo(al hu( for ,iesel en!ines and transmissions for 9u<uki worldwide.

Maruti Su#uki India $MSI%&

1aruti 9u<uki is the market leader in the passen!er car industry with a market share of 5..+& and with a .3& share in the overall compact car se!ment. 9u<uki 1otor "orporation of Eapan holds a +5& stake in 19I:. 1aruti has around +.2 sales outlets coverin! 372 cities. 1aruti plans to e3pand service its service network from 2,+00 outlets in more than *,200 cities to 3, 00 outlets in *,700 cities (y AG*0. In AG07-0 , 1aruti has launched 9Q5 and ,<ire in mid si<e se!ment. 19I: has announced an investment of %s.90 (illion in the e3pansion of its manufacturin! facilities. 'his investment will (e made over a period of ei!ht years and most of it would (e in capacity e3pansion and settin! up of %7, and desi!n facility.

'ey ModelsH 1 00, O1CI, $ypsy, #lto, Da!on %, 6ersa, $rand 6itara, 9wift, Ren 8stillo, 9wift ,iesel, 9Q5 and ,<ire.

1&

"(OD)C*S
Maruti +,,: $+,,cc -. /!p& 'he 1aruti 00 is the (est value for money car on Indian roads. 'his entry level model sports unmatched fuel efficiency, un(eata(le purchase price 7 low cost of ownership. It is still considered as the ideal step up. J %ational

Maruti 0lto: $+,, cc1 -2 /!p& India?s lar!est sellin! cars> the features that have made the difference are its incredi(le milea!e and 8lectronic -ower 9teerin!. -riced a little hi!her than the 00, the #lto has carved a niche for itself as the ideal ur(an commuterJ %ational.

Maruti S3ift $45,,cc1 +2/!p& %adical 9tylin! and an ener!etic en!ine has made the 9wift a runaway success. 'he car is the leader in the compact plus se!ment due to 1aruti?s (rand name and technolo!ical superiority. J 9elf e3pressive

Maruti Esteem$45,, cc1 +./!p& Introduced in *995, the 8steem was a runaway success in a lar!ely unchallen!ed market. @owever with the advent of new -layers like the @yundai #ccent and the Aord Ikon, the esteem has stru!!led to retain its market. Is still a practical value for money 9edan. 8motional

6rand itara $7258 cc1 488 /!p& # 9B6 directly imported from 9u<uki as a ")B, the $rand 6itara, is a 9uper premium 9B6, with a variety of features. @owever sales are not very stron! as the vehicle is very steeply priced. - 9elf 83pressive

1'

M0()*I S)9)'I *OD0:

1ore than half the num(ers of cars sold in India were a 1aruti 9u<uki (ad!e. It is a su(sidiary of 9u<uki 1otor "orporation Eapan. #s IndiaSs lar!est passen!er car company, it accounts for over +0 per cent of the domestic car market. It has a sales network of +.2 outlets in 372 towns and cities, and provides maintenance support to customers at 2+3 workshops in over *200 towns and cities 0as on ,ecem(er 3*,20072. 9ince inception, it has produced and sold over ..7+ million vehicles, includin! almost +00,000 units in 8urope and other e3port markets. 1aruti has (een rated first in customer satisfaction for ei!ht years in a row in E , -owerSs 9urveys, and is IndiaSs 1ost %espected #utomo(ile "ompany 0#s per survey conducted (y )usiness Dorld, a reputed Indian 1a!a<ine2. #lso, in an independent survey conducted (y Aor(es."om where they rated top 200 reputed companies on various parameters such as reputation within the customer and employee fraternity, 'hey stood 9*st. In the automo(ile section they finished 7th.

*;E M0()*I D<0

1aruti was (orn as a !overnment company, with 9u<uki as a minor partner, to make a peopleSs car for middle class India. Over the years, 1aruti?s product ran!e has widened, ownership has chan!ed hands and the customer has evolved. Dhat remains unchan!ed, then and now, is
1(

1aruti?s mission to motori<e India. 1aruti?s parent company, 9u<uki 1otor "orporation, has (een a !lo(al leader in mini and compact cars for three decades. 9u<ukiSs technical superiority lies in its a(ility to pack power and performance into a compact, li!htwei!ht en!ine that is clean and fuel efficient. 'he same characteristics make 1aruti?s cars e3tremely relevant to Indian customers and Indian conditions. -roduct =uality, safety and cost consciousness are em(edded into 1aruti?s manufacturin! process, which are inherited from 1aruti?s parent company. %i!ht from inception, 1aruti (rou!ht to India, a very simple yet powerful Eapanese philosophy Msmaller, fewer li!hter, shorter and neater.N Arom the Eapanese work culture they im(i(ed simple practices like an open office, a common uniform and common canteen for everyone from the 1ana!in! ,irector to the workman, daily mornin! e3ercise, and =uality circle teams. Arom the Eapanese work culture 1aruti im(i(ed simple practices like an open office, a common uniform and common canteen for everyone from the "8O to the workman, daily mornin! e3ercise, and =uality circle teams.

M0()*I S)9)'I E="O(*S

#s a forward lookin! or!ani<ation, it has always stressed on e3ports to remain competitive in !lo(al markets. #n e3posure of !lo(al markets always comes handy in improvin! product =uality and cost. 'his is why, in *9 . despite a 3-year waitin! period in the domestic market, it started e3portin! cars, only to ensure that they remain competitive in terms of cost and =uality. 9ince then they have sold more than 5+0,000 cars to more than *00 countries of the world. 9ome of 1aruti?s cars (ecame (estsellers. :ike 1aruti?s old Ren- was pro;ected as the Dorld "ar and was very well received in 8urope. 9imilarly, #lto received rave reviews in Cetherlands, $reece, $ermany and 9wit<erland. #ltoSs super( fuel economy entitled its customers to a *000 8uro refund from the $overnment of Cetherlands. @owever, due to adoption of new emission norms they had to temporarily suspend 1aruti?s e3ports to 8uropean countries and they (e!an developin! a new model for 8uropean markets. #t present, they e3port entry level models to many :atin #merican and #frican nations. Dith a heavy focus on Con-8uropean countries 1aruti?s has mana!ed to (rin! incremental sales and 1aruti?s e3ports to these countries have !rown (y 57&, .+& and 50& in the past three years.

S>O* 0<0%:SIS OF M0()*I )D:O6

STRENGTHS
Esta/lis!ed distri/ution and after-sales net3orks:1aruti Bdyo! has its distri(ution centers all over the India and it delivers outstandin! after sales service to the customers. 'hat?s why 1aruti people have faith in the name 1aruti. )nderstanding of t!e Indian market and a/ility to liaison 3it! t!e government:1)

1aruti Bdyo! understands the Indian market in a very !ood manner. It knows what e3actly Indian people need and provide it accordin!ly. 1aruti Bdyo! has a lot of a(ility to liaison with the !overnment. 0/ility to design products 3it! differentiating features:1aruti has produced the different models of their cars. 1aruti Bdyo! has (een producin! cars for middleclass ran!e, hi!her class ran!e so it is fulfillin! needs of all classes of the country. 1aruti also !ives various and different features in their cars. Brand Image:)rand ima!e is the important thin! for any (usiness. 1aruti Bdyo! has created its own (rand ima!e in the country. 'oday 1aruti Bdyo! has developed their different ima!e in the mind of people. E?perience and 'no3-!o3 in tec!nology:1aruti Bdyo! has colla(orated with 9u<uki, the Eapanese company. Dith this colla(oration, 1aruti has (rou!ht hi-tech technolo!ies in their past models and also usin! some modern techni=ues in their upcomin! models.

WEAKNESSES
%ack of e?perience 3it! t!e foreign market:'hou!h 1aruti Bdyo! has their name in Indian market, they are not havin! e3perience with forei!n market. Dhen e3ports of any products starts or increases company !ets lot of revenue in forei!n currency. Ine?perience 3it! foreign 3orkforce If any company recruits forei!n e3perts or forei!n technicians who know have (etter technical knowled!e then it helps in product development in more efficient way. )ut 1aruti is not that much e3perienced with forei!n workforce. ;eavy Import tariffs:1aruti Bdyo! spends a lot on import tariffs on imported spare parts. It increases the cost of product. 'hou!h same thin! happens with other companies 1aruti incurs more tariffs compare to other companies.

OPPORTUNIT*
Increased purc!asing po3er of Indian middleclass category:Cow a day?s situation has (een chan!ed. Cow even Indian middle class people can also afford the lu3uries like cars. 'heir purchasin! power is increased so there is lot of scope to 1aruti Bdyo! to increase their volume.
2*

 6ovt@ su/sidies:1aruti Bdyo! !ets a lot of su(sidies from $ovt. 9o it?s !ood opportunity for 1aruti Bdyo! to reduce their cost which !ets increase due to various tariffs. *a? /enefits 'a3 (enefit is an important opportunity for any company. 9ame way 1aruti Bdyo! !ets ta3 (enefits from $overnment which helps them to increase reserves and use it into the research and development and other activities. Foreign colla/oration ,ue to colla(oration with 9u<uki company, Eapan, 1aruti has !ot various forei!n techni=ues which helps in product development.

THREATS
*!reats from C!inese manufacturers:#ctually speakin! this threat is not only to 1aruti Bdyo! (ut also to all four wheelers manufacturers in the world. "hinese are well known in producin! (est =uality product in less cost. Indian as 3ell as foreign competitors:9ince this is !lo(ali<ed world, there are various Indian as well as forei!n competitors to 1aruti. Indian companies like 'ata, 1ahindra and forei!n companies like ,aewoo, 'oyota are doin! well in this industry.

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10-NDA+ MOTO* +ND+A LTD#

@yundai 1otor India :imited 0@1I:2 is a wholly owned su(sidiary of @yundai 1otor "ompany, 9outh Torea and is the second lar!est car manufacturer and the lar!est passen!er car e3porter from India. @1I: presently markets 37 variants of passen!er cars across se!ments. 'he 9antro in the ) se!ment, the $et< -rime, i*0 and the -remium hatch(ack i20 in the )U se!ment, the #ccent and the 6erna in the " se!ment, the 9onata 8m(era in the 8 se!ment and the 'ucson in the 9B6 se!ment. @yundai 1otor India :td, continuin! with its tradition of (ein! the fastest !rowin! passen!er car manufacturer, re!istered total sales of 5 9,32 vehicles in the calendar year 0"G2 200 , an increase of 59.. percent over "G 2007. In the domestic market it clocked a !rowth of 22.5 percent as compared to25+, 3 7 units in 2007 while overseas sales !rew (y 92.+ percent, with e3ports accountin! for 253,93* units in 200 . @1I:Ss fully inte!rated state-of-the-art manufacturin! plant near "hennai (oasts of the most advanced production, =uality and testin! capa(ilities in the country. In continuation of its commitment to provide the Indian customer with !lo(al technolo!y, @1I: commissioned its second plant in Ae(ruary 200 which produces an additional 300,000 units per annum, raisin! @1I:Ss total production capacity to .00,000 units per annum. @1I: has invested to e3pand capacity in line with its positionin! as @1"Ss !lo(al e3port hu( for compact cars. #part from the e3pansion of production capacity, @1I: currently has 2+* stron! dealer networks across India, which will (e further (olstered in 2009. In 200 , @1I: also successfully completed *0 !lorious years of operations in India and to commemorate its achievements, initiated a uni=ue trans-continental drive from ,elhi to -aris in two of its hu!ely popular i*0 Tappa cars. 'he drive created automo(ile history (y completin! a distance of *0,000km in ;ust *7 days after which the i*0s were showcased at the -aris 1otor 9how in Octo(er. In fact it was at the -aris 1otor 9how that @1I: first unveiled the @yundai i20 and the car received a phenomenal response from the auto enthusiasts across the world. @yundai 1otor India also accomplished the landmark of producin! the fastest 20th lakh cars in India in 200 . :ike 200 , the year 2007 had also (een a si!nificant year for @yundai 1otor India. It achieved a si!nificant milestone (y rollin! out the fastest 500,000th e3port car. @yundai e3ported to over 9+ countries !lo(ally> even as it plans to continue its thrust in e3istin! e3port markets, it is !earin! up to step up its foray into new markets. 2007 also saw the launch of the i*0 and yet another path-(reakin! record in its youn! ;ourney (y rollin! out the fastest *,+00,000th car. @yundaiSs new model i*0 made a clean sweep of all the S"ar of the Gear 200 S awards from the leadin! automotive ma!a<ines and '6 channels like )9 1otorin!, "C)"-'6* #uto"ar, C,'6 -rofit "ar 7 )ike India and Overdrive ma!a<ine. 'he i*0 was also the choice of the discernin! automotive media of the country as they conferred the presti!ious SIndian "ar of the GearS 0I"O'G2 award to the i*0 as well.
22

'he 9antro and the #ccent also received the S'C9 6oice of the "ustomer - 200 S award for the -remium "ompact "ar 09antro2 and the 8ntry 1id si<e "ar 0#ccent2. In 1arch 200 it achieved yet another milestone (y rollin! out the fastest +00,000th e3port car. In 2007, the @yundai 6erna had also (a!!ed some of the most presti!ious awards startin! with the Overdrive ma!a<ine?s /"ar of the Gear 2007?, the /)est 1id-si<e "ar of the Gear? award from C,'6 -rofit "ar 7 )ike India, the /)est 6alue for 1oney "ar? from "C)" #utocar and S-erformance "ar of the GearS from )usiness 9tandard 1otorin!. @yundai cars have (een a favorite at all awards ceremonies and has won many awards. 'he 9onata 8m(era won the S83ecutive "ar of 'he Gear 200.S award from )usiness 9tandard 1otorin! ma!a<ine and C,'6 -rofit "ar 7 )ike India had declared the 'ucson as the S9B6 of 'he Gear 200.S. Cot only this, @1I: has also (een awarded the (enchmark I9O *500* certification for its sustaina(le environment mana!ement practices. 8sta(lished in *9.7, @yundai 1otor "o. has !rown into the @yundai-Tia #utomotive $roup which was ranked as the world?s fifth-lar!est automaker in 2007 and includes over two do<en auto-related su(sidiaries and affiliates. 8mployin! over 7+,000 people worldwide, @yundai 1otor posted sales of B9475.9 (illion in 2007 on a consolidated-(asis and B9432. (illion on a non-consolidated (asis 0usin! the avera!e currency e3chan!e of 929 won per B9 dollar2. @yundai vehicles are sold in *93 countries throu!h some .,000 dealerships and showrooms.

23

"(OD)C*S
Santro =ing $ 4,+8 cc1 85 /!p&
,u((ed as the 9unshine car, the 9antro has under!one a num(er chan!es and remains @yundai?s most successful car in India to date. 8ase of maintenance, !ood looks and a responsive en!ine have made the 9antro Qin!, an e3cellent car to own.- %ational.

0ccent $4@. litre "etrolA 4@. litre C(Di Diesel&

#ttractively packa!ed and availa(le in (oth petrol and ,iesel variants, the #ccent challen!ed 1aruti supremacy in the sedan se!ment. Dith the release of the sporty hatch(ack viva, the #ccent !ave its consumers multiple varieties to choose from. It continues to (e one of @yundai?s most popular models J 8motional.

Elantra $4@+ litre "etrolA 7@, litre C(Di engine&

'his premium sedan (oasts of a variety of features. @owever due to improper positionin!, and pricin! the product failed.

Sonata Em/era $7.5B cc1 48. /!p&

9ince its launch as a -remium sedan in the year 2002, the 9onata has had several makeovers without much success. 'he 9onata 8m(era is the 3 rd version of the 9onata and @yundai is confident that this model will outsell its predecessors H 9elf e3pressive.

*erracan $7B,, cc Crdi1 4., /!p&

'he 'erracan was launched as a 9uper premium 9B6, and is tar!eted as anOffroader. Bnconventional looks and a hi!h price ta! have affected its sales.- 9elf 83pressive.

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 6et# $4@5 litres1 +7 /!p&

'he $et< was the first entrant into the "ompact plus se!ment, however the launch of the 9u<uki 9wift, has sta!nated the sales of the $et<H 8motional.

/WOT ANAL0/+/ O4 10-NDA+ MOTO*/

STRENGTHS
In few years of operation, @1I: has secured a challen!er position in the car se!ment (ein! second lar!est car manufacturer of India. -roduct line in all si<es of cars. -resence in diesel se!ment of cars. Option availa(le to customer to up!rade their cars (ein! with the company. $ood -romotional strate!y (y endorsin! cele(rities with its cars. 9tron! )rand 6alue. #vaila(ility of raw material.

WEAKNESSES
:ess num(er of dealers and service stations. Cot a(le to transfer its car specialty as 1aruti is doin! rather more relied on cele(rities. 'hou!h endorsin! cele(rities was successful initially (ut at the same time company needs to transfer the thou!hts (y tellin! (etter =ualities of the car to its customer as 1B: is doin!.

2&

OPPORTUNIT*
@1I: may also enter into the diesel se!ment for small cars. 'he company lauched its mid si<e cars in diesel se!ment with "%,I en!ines and it was very successful. It is easier for @1I: to come faster then its competitor 1B:. %7, on fuel su(stitution has (ecome must to sustain lon!er in future. 8conomic !rowth of the country is sound and promisin! in future. :i(eral policies of $OI. )i! 1arketH ,omestic and #(road.

THREATS
'ata 1otors launchin! MC#CON with a price ta! of %s. * :ac and that could !ive a (i! impact on sales of 1B:. 1aruti is very fast in reaction to developments made (y @1I: to retain its leadership position. "hina may !ive a !ood competition as they are also plannin! to enter into car se!ment.

2'

1ONDA MOTO*/
COM"0<: "(OFI%E 0<D ;IS*O(: ;O<D0 MO*O( CO@ C0"0<
# B9 4 5.3 )illion 8nterprise with over *9.. million products sold annually. 9+ -roduction Aacilities in 35 countries. Over +.9 million -orta(le -ower -roducts sold annually. Over 5. million -orta(le -ower -roducts e3istin! customers (ase worldwide.

0BO)* ;O<D0
83istin! over the years, @onda has !ained prominence in the !lo(al community throu!h ceaseless innovation and a commitment to servicin! the needs of society. @onda?s uni=ue corporate culture and !round(reakin! approach to developin! new technolo!ies ena(le the or!ani<ation to develop e3citin! new products that provide freedom of movement for people around the world. Dith responsi(ility to the environment, a commitment to local markets, and respect for people as its !uidin! principles, @onda aims to contri(ute to an increasin!ly mo(ile society characteri<ed (y =uality of life, comfort and convenience. # local approach with a !lo(al outlook (est meets the individual needs of diverse markets. @onda?s philosophy is to produce where there is market demand. )y inte!ratin! with local customs and cultures, and makin! use of local mana!ement resources, @onda has (een a(le to serve the people (etter of the re!ions in which it operates. -roducts meetin! specific needs in each of four world market re!ions i.e. #merica, 8urope, 1iddle 8ast and #fricaI #sia and OceaniaI Eapan - are developed, produced, and sold in these re!ions @onda?s !lo(al network ena(les the e3chan!e of ideas and information amon! employees to assure a hi!her level of creativity in technolo!y and products. #t @onda, every employee knows that our founder?s first commercial product release was
2(

an en!ine. Over the years, @onda has come to lead the industry in en!ine manufacturin!, creatin! everythin! from small electric (icycle motors to some of the lar!est and most powerful automotive racin! en!ines in the world. In recent years, the @onda name evokes ima!es of motorcycle, automo(iles, and power e=uipment products. 8ach of these three product cate!ories constitutes a via(le and ro(ust industry in its own ri!ht. #s these operations develop and !row, each with its own distinctive technolo!y and (usiness style, @onda as a whole is enriched (y the diversity of products and enterprises that are (ased, as always, upon the FE8' 8C$IC8F that first made @onda !reat. 8n!ines that are now the cleanest, most popular - in the world.

PRODUCT LINE

Honda Jazz

Honda City

Honda Accord

Honda Civic

New Honda CR-V

;O<D0: Marketing Management and 6lo/al Business Management *ec!niDue

+a,- .

COM"E*I*O(S
2)

'he competitors of @OC,# includes all the local and forei!n "ars manufacturer includin! 9u<uki 'oyota 1itsu(ishi 1ercedes )1D

COM"E*I*IO<
'he fear of threat of competitors is an increase strate!y to deal with competition soon finds itself out of the market. #s with other (usinesses, competition also affects the (usiness of "ompetition is increasin! now a days due to many factors. 9ome are mentioned as @"rofit @0ccessi/le *ec!nology @6lo/ali#ation@ )ecause of handsome amount of profit in a "ar industry many new 1odels entered in the market from the last few years. 'he competition (etween the new entrants is fierce and already mar!ins have collapsed. 'echnolo!y (rin!s a revolution in every field of life. 1achines are used for (etter development of structure. "ompetition is also increasin! (ecause of many multinational and local companies entered in this (usiness.

COM"E*E*IO< 0<0%:SIS
'he competition environment has a lar!e impact on the marketin! operations of the company. )efore launchin! a product, it is necessary to analy<e the competition environment of the tar!et market. If there is a threat from lar!e competition, than a suita(le marketin! strate!y has to (e worked out to overcome the pro(lems. -roduct differentiation or price leadership can lead to success. "urrent Industry competition is hi!h (ecause of the $overnment policies and threat of new stron! entrants. De have three types of competition which are as followsH

3*

 Brand competition Form competition 6eneric competition

B(0<D COM"E*E*IO< 'his competition deals directly with the (rand name ,ifferent (rands of are availa(le in the market who are directly @onda (rand competitors. "ompetitors are called sum of those companies which are in same market, producin! same product at same prices. Dhen we analy<e the competitors we have to keep four important aspects of the competitors in our mind. 4@ IDE<*IF: *;E COM"E*I*O(S In identify study an or!ani<ation has to identify the specific competitors of identify its competitors, for this purpose @onda classified competitors into two classes. 0@ I<D)S*(I0% COM"E*I*O(S@ It means when @onda launches cars then they think a(out the 9ervice and private cotta!e industry. B@ M0('E* COM"E*I*O(S. It means when we come with tea in the market we are not !oin! to compete only with 'apal (ut also with "offee. 'his e3ample helps us to understand market competitors (ut when we talk a(out the @onda product in the market we see there is not other su(stitute of cars as coffee for tea hence all the industrial competitions are also the competitions of @onda in market. 7@ "%0:E(S OF I<D)S*(:@ @onda cate!ories the (usiness accordin! to this concept into four types .1arket :eader. .1arket Aollower.
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 .1arket "hallen!er .1arket Cicher In it we have to mention that what type of player our product to (e so @onda is doin! this we compare in realistic manner then we see @onda is market leader, 'oyota is its challen!er and 9u<uki is market nicher.

S>O* 0<0%:SIS OF ;O<D0

S*E<6*;S .Vuality of "ars ."omfort a(ility of "ars .$ood Dill .-roduction 'echnolo!y. >E0'<ESS .Old ,esi!nin! .:ack of response 0'o and from customer2 :ow #dvertisement throu!h #dds :ow =uality of (ody structure O""O(*)<I*: .83port (usiness e3pansion .Increasin! ratio on =uality conscious people. @onda can increase product line (y introducin! ;eeps *;(E0*S .$ovt. unsta(le policies due to political unsuita(ility .@i!h market share of (randed and refurnished cars
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 .:imited purchasin! power. 9trict leasin! polices may not (e removed (y the $ovt.

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34

S0%ES 0<0%:SIS
@onda 1otor "o., :td. reported sales of W*2.00 trillion 0B94**3.3* (illion2 for the fiscal year endin! 1arch of 200 . 'his represents an increase of .3& versus 2007, when the companySs sales were W**.095 trillion. 9ales at @onda 1otor "o., :td. have increased durin! each of the previous five years. @onda 1otor "o., :td. also saw si!nificant increases in sales in 1otorcycle )usiness 0up *3.7& to W*.+.trillion2. Eust over half of the companySs 200 sales were in Corth #mericaH in 200 , this re!ionSs sales were W..09 trillion, which is e=uivalent to +0. & of total sales. In 200 , sales in %est of the Dorld were up at a rate that was much hi!her than the company as a whole. @onda 1otor "o., :td. also e3perienced si!nificant increases in sales in 8urope 0up 22.3& to W*.+0 trillion2 and #sia 0up 27..& to W*.3* trillion2.

0n approac! /ased on on-t!e-Eo/ training

@ondaSs approach to personnel education is (ased on on-the-;o( trainin!H (uildin! speciali<ed skills and professional capa(ilities throu!h direct e3perience. @onda has esta(lished on-the-;o( trainin! pro!rams for each ;o( description, settin! =ualitative and =uantitative tar!ets for the knowled!e and skills to (e ac=uired. 'hese pro!rams provide with an opportunity for associates to ac=uire speciali<ed skills and mana!erial capa(ilities while helpin! supervisors assess and foster the aptitude of the associates they mana!e. 'o supplement these on-the-;o( trainin! pro!rams, @onda also offers off-the-;o( trainin! desi!ned to provide associates an opportunity to enhance their careers (y developin! new speciali<ed skills or mana!ement capa(ilities. 'o support associates who wish to take the initiative to learn new skills,
3

ac=uire knowled!e, and cultivate themselves in order to fully reali<e their own potential, @onda offers opportunities for lan!ua!e learnin!, distance education, and inter-industry e3chan!es.

"rincipal off-t!e-Eo/ training programs #t @onda, we match a com(ination of on-the-;o( and off-the-;o( trainin! to our associatesS aptitudes and aspirations in an effort to help them improve their a(ilities. Our off-the-;o( trainin! pro!ram is divided into three main areas, with separate trainin! pro!rams for each level. *. 9elf-improvement trainin! 0career development2 2. Dork performance trainin! 0skill development2 3. "olla(oration trainin! 0mana!ement trainin!2 (especting associatesF opinions and independence @onda fosters each associateSs drive and independence, and the company has put in place a num(er of systems to harness those capa(ilities to contri(ute to its on!oin! reor!ani<ation and !rowth. 0ssociate development and evaluation t!roug! t3o-3ay communication %eflectin! @ondaSs emphasis on two-way communication with supervisors in associate development and evaluation, associates have at least three interviews with
3&

their supervisors each year. ,urin! the first interview in #pril, associates descri(e the future in their own words 0includin! aspirations, personal o(;ectives, etc.2 and clarify their vision for the future and their direction !oin! forward throu!h their supervisorSs advice. 'hey then work out their individual role (ased on the or!ani<ationSs (usiness !oals for the fiscal year in =uestion. ,urin! interviews in Eune and ,ecem(er, supervisors evaluate associate performance durin! the precedin! si3 months, e3plain the reasonin! (ehind their ;ud!ments, and share an assessment of each associateSs stren!ths and weaknesses. )y facilitatin! a discussion of su(;ects such as future o(;ectives and career directions, the interviews pave the way for associatesS skill improvement. ;ondaFs approac! to customer satisfaction In accordance with the @onda philosophy of respect for the individual and the 'hree Eoys of (uyin!, sellin!, and creatin!, @onda has always worked closely with its dealerships to ma3imi<e customer satisfaction. 8very step of the way, from purchase to after-sales service, dealerships work hand in hand with @onda to earn and maintain the trust of customers. Systems and o/Eectives designed to en!ance 3orld3ide customer satisfaction In order to F-rovide !ood products to our customers with speed, afforda(ility and low "O2 emissions.F as stated in @ondaSs 2020 vision, the "ustomer 9ervice Operations is strivin! to reali<e optimal service operations in markets worldwide to pursue the priority !oal of creatin! customer ;oy worldwide throu!h local service. In order to achieve this, we set our !oals to (e Co. * in customer satisfaction (y an overwhelmin! advanta!e. @onda aims to lead the industry in fan-winnin! customer satisfaction. 'o achieve this level of satisfaction, the company is workin! with dealers to deli!ht customers (y providin! service that e3ceeds e3pectations, there(y leadin! to repeat (usiness, referrals to new customers, and an on!oin! increase in the num(er of @onda fans.

3'

'o attain this !oal, "ustomer 9ervice Operations has structured its activity policies of improvin! customer satisfaction and reducin! customer complaints, developin! an advanced service environment, and ma3imi<in! (usiness efficiency and e3pandin! (usiness operations. It also holds re!ular meetin!s and other events desi!ned to enhance cooperation with each re!ion while focusin! on creatin! an environment in which dealersX@ondaSs point of contact with customersXcan address customer satisfaction enhancement more effectively and efficiently.

En!ancing customer satisfaction

@onda is pursuin! measures in every product se!ment to provide lifelon! satisfaction to as many customers as possi(le. I+,'!+!#t"#$ -u%to+!r %at"%fa-t"o#

@onda is involved with a variety of initiatives to improve customer satisfaction with motorcycles, automo(iles, and power products. Maintenance support initiatives

In an effort to provide more e3tensive maintenance support, weSre workin! to develop support tools and to foster the development of e3perts at overseas su(sidiaries. @avin! em(raced the !oal of (ecomin! a company that society wants to e3ist (y sharin! ;oy with the people of the world (ased on the @onda philosophy, @onda is pursuin! a ran!e of corporate activities in order to create new value, e3pand value, and fulfill our commitment to the future while cultivatin! the freedom of associates
3(

to seek out a (etter way, a willin!ness to rise to the challen!es of the future, and a spirit of colla(orative creativity. F"reatin! the EoysF means continuin! to dream and create new value ahead of the times with free-spirited thinkin! to enhance 'he 'hree Eoys.F 83pandin! the EoysF means reali<in! dreams with more people and contri(utin! to local society to e3pand 'he 'hree Eoys around the world. F8nsurin! the ;oys for the ne3t !enerationF means workin! toward the sustaina(le development of society and achievin! the hi!hest level of environmental and safety performance to ensure 'he 'hree Eoys for the ne3t !eneration. )y resolutely pursuin! these directions in our activities, fulfillin! our social responsi(ility, and communicatin! effectively with all @onda stakeholders, includin! customers, dealers, suppliers, associates, shareholders, investors, and local communities, it is our intention to help (rin! a(out a sustaina(le society.

HONDA FUTURE MODELS AND PLANS

3)

Hondas Path to Transformation

Over the past few years, the focus of consumer demand for automo(iles in world markets has shifted rapidly toward compact vehicles. 'his chan!e reflects a !lo(al upsur!e of environmental awareness as well as structural chan!es in the world economy. 'o achieve a transition to a new phase of !rowth and success, @onda must adapt =uickly to this new era. De need to develop and commerciali<e advanced environmental technolo!ies, stren!then our activities in emer!in! markets, and respond =uickly to the trend toward smaller vehicles. 'hese are challen!in! times, and we must renew our commitment to @onda?s fundamental philosophy of puttin! the needs of the customer first. #(ove all, we must continue to offer products that will (rin! ;oy to our customers. 'hese perceptions are reflected in the direction that we have chosen for @onda over the ne3t *0 years. 'he messa!e that I have !iven to @onda associates in the stron!est possi(le terms is that our most important task is to provide afforda(le, low-car(on solutions throu!h the speedy development of =uality products. De will turn this messa!e into reality throu!h determined initiatives in three areasH advances in environmental technolo!y, the stren!thenin! of production systems, and the stren!thenin! of our (usiness activities in emer!in! economies.
4*

Hondas Environmental Awareness

One key area of concern in relation to the !lo(al environment is climate chan!e and ener!y issues. @onda has identified this as its most important focus for action. #s a manufacturer of personal mo(ility products, we have made the reduction of !reenhouse !as emissions a particular priority, and we have intensively invested mana!ement resources in this area. De also need to take a full ran!e of strate!ic actions in response to other environmental issues, such as su(stances of concern, resources and (iodiversity. Its (elieve that we can take @onda forward into a new and si!nificant phase of !rowth and success (y takin! the initiative in thinkin! a(out this difficult =uestionH @ow can we use our advanced environmental technolo!y to reconcile our role in providin! the ;oy of personal mo(ility to consumers with our own role in the sustaina(le societyY 'his will (e a year of important (e!innin!s. De will take our first steps toward the reali<ation of our vision for @onda in 2020 as a !lo(al leader in environmental and ener!y technolo!ies. In addition to the ,irection for the Ce3t *0 Gears, which we formulated in 20*0 (ased on @onda?s principles, we have also adopted the @onda 8nvironmental 6ision and 2020 -roduct "O2 8missions 'ar!ets. In this time of rapid social and economic chan!e, we cannot afford to rela3 our awareness of the importance of environmental issues. Instead, we need to stren!then our awareness and accelerate our response.

A New Phase of lo!al "#siness E$%ansion

It?s (elieved that to (e a company society wants to e3ist, @onda must respond to the needs of its customers (y supplyin! low-car(on solutions in the form of products that offer new value. Arom its earliest days, @onda has actively worked to e3pand its (usiness !lo(ally under its (asic strate!y of (uildin! products close to the customer. 8nvironmental issues occur on two levels. 'here are issues that affect the entire world, such as !lo(al warmin!, and pro(lems that are specific to certain localities and areas, such as water and soil issues. #s a !lo(al enterprise, @onda takes (oth types of issues very seriously. De want our customers in every country and re!ion to understand our environmental initiatives, and for that reason we will pro!ressively pu(lish re!ional editions of the @onda 8nvironmental #nnual %eport.
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TATA MOTORS LT./

'ata 1otors :imited is India?s lar!est automo(ile company, with revenues of %s. 3+.+*.5 crores 0B9, . (illion2 in 2007-0 . It is the leader in commercial vehicles in each se!ment, and amon! the top three in passen!er vehicles with winnin! products in the compact, midsi<e car and utility vehicle se!ments. 'he company is the world?s fourth lar!est truck manufacturer, and the world?s second lar!est (us manufacturer. 'he company?s 23,000 employees are !uided (y the vision to (e M(est in the manner in which we operate (est in the products we deliver and (est in our value system and ethics.N 8sta(lished in *95+, 'ata 1otors? presence indeed cuts across the len!th and (readth of India. Over 5 million 'ata vehicles ply on Indian roads, since the first rolled out in *9+5. 'he company?s manufacturin! (ase in India is spread across Eamshedpur 0Eharkhand2, -une 01aharashtra2, :ucknow 0Bttar -radesh2 and -antna!ar 0Bttarakhand2. Aollowin! a strate!ic alliance with Aiat in 200+, it has set up an industrial ;oint venture with Aiat $roup #utomo(iles at %an;an!aon 01aharashtra2 to produce (oth Aiat and 'ata cars and Aiat powertrains. 'he company is esta(lishin! two new plants at ,harwad 0Tarnataka2 and 9anand 0$u;arat2. 'he company?s dealership, sales, services and spare parts network comprises over 3+00 touch points> 'ata 1otors also distri(utes and markets Aiat (randed cars in India. 'ata 1otors, the first company from India?s en!ineerin! sector to (e listed in the Cew Gork 9tock 83chan!e 09eptem(er 20052, has also emer!ed as an international automo(ile company. 'hrou!h su(sidiaries and associate companies, 'ata 1otors has operations in the BT, 9outh Torea, 'hailand and 9pain. #mon! them is Ea!uar :and %over, a (usiness comprisin! the two iconic )ritish (rands that was ac=uired in 200 . In 2005, it ac=uired the ,aewoo "ommercial 6ehicles "ompany, 9outh Torea?s second lar!est truck maker. 'he rechristened 'ata ,aewoo "ommercial 6ehicles "ompany has launched several new products in the Torean market, while also e3portin! these products to several international markets. 'oday two-thirds of heavy commercial vehicle e3ports out of 9outh Torea are from 'ata ,aewoo. In 200+, 'ata 1otors ac=uired a 2*& stake in @ispano "arrocera, a reputed 9panish (us and coach manufacturer, with an option to ac=uire the remainin! stake as well. @ispano?s presence is (ein! e3panded in
42

other markets. In 200., it formed a ;oint venture with the )ra<il-(ased 1arcopolo, a !lo(al leader in (ody-(uildin! for (uses and coaches to manufacture fully-(uilt (uses and coaches for India and select international markets. In 200., 'ata 1otors entered into ;oint venture with 'hon(uri #utomotive #ssem(ly -lant "ompany of 'hailand to manufacture and market the company?s pickup vehicles in 'hailand. 'he new plant of 'ata 1otors 0'hailand2 has (e!un production of the Qenon pickup truck, with the Qenon havin! (een launched in 'hailand at the )an!kok 1otor 9how 200 . 'ata 1otors is also e3pandin! its international footprint, esta(lished throu!h e3ports since *9.*. 'he company?s commercial and passen!er vehicles are already (ein! marketed in several countries in 8urope, #frica, the 1iddle 8ast, 9outh 8ast #sia, 9outh #sia and 9outh #merica. It has franchiseeI;oint venture assem(ly operations in Tenya, )an!ladesh, Bkraine, %ussia and 9ene!al. 'he foundation of the company?s !rowth over the last +0 years is a deep understandin! of economic stimuli and customer needs, and the a(ility to translate them into customer-desired offerin!s throu!h leadin! ed!e %7,. Dith over 2,+00 en!ineers and scientists, the company?s 8n!ineerin! %esearch "entre, esta(lished in *9.., and has ena(led pioneerin! technolo!ies and products. 'he company today has %7, centers in -une, Eamshedpur, :ucknow, in India, and in 9outh Torea, 9pain, and the BT. It was 'ata 1otors, which developed the first indi!enously developed :i!ht "ommercial 6ehicle, India?s first 9ports Btility 6ehicle and, in *99 , the 'ata Indica, India?s first fully indi!enous passen!er car. Dithin two years of launch, 'ata Indica (ecame India?s lar!est sellin! car in its se!ment. In 200+, 'ata 1otors created a new se!ment (y launchin! the 'ata #ce, India?s first indi!enously developed mini-truck In Eanuary 200 , 'ata 1otors unveiled its -eople?s "ar, the 'ata Cano, which India and the world have (een lookin! forward to. # development, which si!nifies a first for the !lo(al automo(ile industry, the Cano (rin!s the comfort and safety of a car within the reach of thousands of families. Dhen launched in India later in 200 , the car will (e availa(le in (oth standard and delu3e versions. 'he standard version has (een priced at %s.*00,000 0e3cludin! 6#' and transportation cost2. ,esi!ned with a family in mind, it has a roomy passen!er compartment with !enerous le! space and head room. It can comforta(ly seat four persons. Its mono-volume desi!n will set a new (enchmark amon! small cars. Its safety performance e3ceeds re!ulatory re=uirements in India. Its tailpipe emission performance too e3ceeds re!ulatory re=uirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers (ein! manufactured in India today. 'he lean desi!n strate!y has helped minimi<e wei!ht, which helps ma3imi<e performance per unit of ener!y consumed and delivers hi!h fuel efficiency. 'he hi!h fuel efficiency also ensures that the car has low car(on dio3ide emissions, there(y providin! the twin (enefits of an afforda(le transportation solution with a low car(on footprint. 'he years to come will see the introduction of several other innovative vehicles, all rooted in emer!in! customer needs. )esides product development, %7, is also focusin! on environment-friendly technolo!ies in emissions and alternative fuels.

43

'hrou!h its su(sidiaries, the company is en!a!ed in en!ineerin! and automotive solutions, construction e=uipment manufacturin!, automotive vehicle components manufacturin! and supply chain activities, machine tools and factory automation solutions, hi!h-precision toolin! and plastic and electronic components for automotive and computer applications, and automotive retailin! and service operations. 'rue to the tradition of the 'ata $roup, 'ata 1otors is committed in letter and spirit to "orporate 9ocial %esponsi(ility. It is a si!natory to the Bnited Cations $lo(al "ompact, and is en!a!ed in community and social initiatives on la(or and environment standards in compliance with the principles of the $lo(al "ompact. In accordance with this, it plays an active role in community development, servin! rural communities ad;acent to its manufacturin! locations. Founded Founder$s& ;eadDuarters 'ey people "roducts (evenue <et income "arent *95+ E%, 'ata 1um(ai, India %atan 'ata, "hairman #utomo(iles and 8n!ines B9, 49.07 (illion 0200.2 B9, 4575.0 million 0200.2 'ata $roup Ea!uar "ars :and %over 'ata ,aewoo "ommercial 6ehicle

Su/sidiaries

0o"#t 1!#tur!%
In 200+, sensin! the hu!e opportunity in the fully (uilt (us se!ment, 'ata 1otors ac=uired 2*& stake in @ispano "arrocera 9#, #ra!onese (us manufacturin! company and introduced its hi!hend inter-city (uses in the country.

44

'ata 1otors has also formed a +*H59 ;oint venture with 1arcopolo 9.#., a )ra<il-(ased !lo(al leader, lead (y )rian )ehrle, in (us (ody (uildin!. 'his ;oint venture is to manufacture and assem(le fully-(uilt (uses and coaches tar!eted at developin! mass rapid transportation systems. 'he ;oint venture will a(sor( technolo!y and e3pertise in chassis and a!!re!ates from 'ata 1otors, and 1arcopolo will provide know-how in processes and systems for (ody(uildin! and (us (ody desi!n.

Produ-t%

'ata 9ierra 'ata 8state 'ata 9umoI9pacio 'ata 9afari 'ata Indica
4

'ata Indi!o 'ata Indi!o 1arina 'ata Cano 03%, 1arch 20092 'ata Qenon Q' 'ata Qover 020092

SWOT ANAL*SIS

STRENGTHS
-ost li(erali<ation, in order to e3pand rapidly, the company adopted the route to ;oint ventures 0E62H 2*& stake in @ispano "arrocera, a 9panish (us manufacturin! company and introducin! its hi!h-end inter-city (uses in the country. # 70& E6 with 'hailand?s 'hon(uri 0auto assem(ler2 which will set up a plant to manufacture pick-ups and will sell them in 'hailand. 'he 2+1' $6D 'ata Covus launched from ,aewoo?s platform 0',"62. +*H59 E6 with )ra<ilian (ased 1arcopolo 0(us (uildin!2. 'his E6 is to manufacture and assem(le fully-(uilt (uses and coaches tar!eted at developin! mass rapid transportation systems. In *993, it started manufacture of hi!h horsepower and emission friendly diesel en!ines in an effort to reduce the pollution in the e3istin! 'ata en!ines and to produce more environmentally friendly en!ines. In 2000, it launched "C$ (uses and filled the product line !ap throu!h the introduction of the **09 vehicle which is an intermediate commercial vehicle and is useful for medium tonna!e loads. Its 83- series vehicles have hi!h tonna!e capacity and hi!h pick up and the :"6 0207 ,I2 with direct i!nition technolo!y caters to the customersS re=uirin! one and same vehicle for commercial as well as personal use. 'ata 1otors has a hi!h domestic e3posure of Z95& in the 1@"6 se!ment and Z 5& in the :"6 se!ment.
4&

'he latest hit of 'ata 1otors is its mini truck #ce which is IndiaSs first indi!enously developed su(-one ton mini-truck. #ce has rapidly emer!ed as the first choice for transporters and sin!le truck owners for city and rural transport. 'he only ma;or en!ine manufacturer in the world to e3press any formal interest in the tur(ulence-(oostin! cylinder head !rooves 'here is definite cost advanta!e as la(or cost is -9 per cent of sales as a!ainst 30-3+ per cent of sales in developed economies. 'ata motors have e3tensive (ackward and forward linka!es and it is stron!ly interwoven with machine tools and metals sectors. #lso, India is an e3cellent source for I' (ased en!ineerin! solution for products 7 process Inte!ration.

WEAKNESSES

'ata 1otorsS ran!e of passen!er cars is still not comprehensive (y industry standards. It has a limited product portfolio which has !iven its key competitors 0@yundai motors, 1aruti 9u<uki2 an e3tra ed!e. 8ven after (ein! in the passen!er cars market for =uite some time, somewhere in the minds of consumers 'ata motors is still synonymous with heavy and commercial vehicle makers and not passen!er car makers. #lso (ecause of this consumers may think the passen!er cars can lack aesthetics and are more (uilt for ro(ustness. #ccordin! to auto e3perts, low cost is a stron!er motive at 'ata 1otors that sometimes makes =uality takes a (ackseat. 'he company is overstaffed and hence human resource utili<ation is su( optimal. #lso decision makin! !ets a hard hit due to e3tensive hierarchy prevalent at 'ata 1otors. 'hey do not have a presence in hi!h volume markets like 8urope and #merica. Cot very hi!h car sales volume which hampers their future plans like increasin! their production and e3pansion.

OPPORTUNITIES
'ata plans to levera!e on the stron! presence of ',"6 in the heavy-tonna!e ran!e and introduce products in India at an appropriate time. 'he E6 with 1arcopolo will (e (eneficial to (oth companies since the latter will a(sor( technolo!y and e3pertise in chassis and a!!re!ates from 'ata 1otors, and 1arcopolo will provide know-how in processes and systems for (ody(uildin! and (us (ody desi!n.
4'

E6 with Aiat, it is likely to !ain access to Aiat?s diesel technolo!y and to the latter?s stron! overseas distri(ution network for its passen!er cars. 'ata 1otors may e3tend this relationship to other se!ments like pick-ups and 1@"6s. :aunch of the !lo(al truck will mark the entry of the company into developed markets like 8urope and the B9#. Dorkin! with Iveco means that the desi!ns will (e in sync with the needs of sophisticated 8uropean customers. $OI policy for moderni<in! of vehicles to arrest de!radation of air =uality and move toward international ta3in! policies linked to a!e of vehicles, are steps which will lead to increased sales for '#'# motors "ommercial vehicle division. 'he cut in e3cise duty that ena(led manufacturers like '#'# 1otors to reduce prices 'he need to transport hi!her volumes of a!ricultural and industrial !oods. 'he cut in tariff on petroleum and diesel from per cent to . per cent will make commercial vehicles more competitive in the e3port market. ,evelopment of the national hi!hway development pro!ram will increase '#'# sales in the lon! run. 'ata is developin! a car it aims to sell in 200 for a(out 42,+00 B9,, which would (e considered the cheapest vehicle ever made in real terms. 'here is hu!e demand in domestic markets due to infrastructure developments and 'ata 1otors is a(le to levera!e its knowled!e of Indian market. 'here are favora(le $overnment polices and re!ulations to (oost the auto industry i.e. Incentive for %7,.

THREATS WITHIN THE IN.USTR*

'here are a lot of new competitions comin! up in the commercial vehicles se!ment which threaten the hu!e market share which 'ata 1otors has !arnered. 9ome of the new Eoint 6entures and competitions have (een listed (elowH

171 has formed a +*H59 E6 called 1ahindra International with I'8", B9#, 0parent C#6I9'#%2, to manufacture commercial vehicles. I'8" is the leader in medium and heavy trucks and (uses in Corth #merica, and is the worldSs lar!est manufacturer of medium-duty diesel en!ines. Aorce 1otorsH E6 with 1#C for manufacturin! hi!h-tonna!e vehicles Aorce 1otors has paired up with 1#C in a 70H30 E6 to manufacture hi!h-tonna!e and specialty vehicles. Aurther, the two companies have formed another E6 to manufacture (uses in India from end-2007.

4(

#shok :eylandH #c=uisition of "<ech %epu(lic-(ased #via #shok :eyland 0#::2 recently ac=uired the truck unit of "<ech %epu(lic-(ased #via. 6olvo, a leadin! manufacturer of trucks, (uses, cars, construction e=uipment, and aero en!ines has a main focus in the area of fully (uilt (uses. In India, it has focused on providin! economical transport solutions in consonance with its values of safety, =uality, and environmental care. Its trucks are reputed for their performance and economy and are the fla! (earers in their production activities in India.

THREATS OUTSI.E THE IN.USTR*

#n Indian ca(inet panel will soon consider a new automo(ile policy that aims to set fresh investment !uidelines for forei!n firms wishin! to manufacture vehicles in the country. 'he policies adopted (y $overnment will increase competition in domestic market, motivate many forei!n "6 manufactures to set up shops in India. Increased interest rates have a potential to hit the sales. #uto loans have (ecome costly causin! customers to defer their purchase which has impacted the sales of 'ata 1otors.

HINDUSTAN MOTORS SWOT ANALYSIS OF HINDUSTAN MOTORS

S$)!28$+1 /industan Motors was the first Indian 0ar 0ompany to start production In India in 1)421 /M has 2ecome a vast company manufacturing cars like the sturdy 3m2assador4 the elegant 0ontessa4 and in colla2oration with Mitsu2ishi of 5apan now manufactures the new Mitsu2ishi 6ancer1 /M started production of the 6andmaster in 1) 44 and in 1) ' 2egan the production of the 3m2assador1 6ater tie7ups with 8eneral Motors 0orporation of 9S34 :au,hall Motors4 9;4 Marion Power Shovel 0o4 9S3 led to new products 2eing launched1 In 1)&3 commenced the production of the 3m2assador Mark2 6ater versions and more forays in related vehicle segments followed1 4)

#,port has 2een steadily increasing4 mainly in the <ritish and 5apanese markets1 =rucks are 2eing e,ported to <angladesh4 #gypt4 >ew ?ealand4 Sri 6anka and Mauritius1 =he #arth moving #@uipmentAs are 2eing e,ported to !man4 5ordan4 Ira@4 <angladesh4 Mauritius and 6i2ya1 /M has a vast service network1 =he Passenger 0ar and 9tility "ehicle market is 2eing attended 2y a 11 strong dealer network4 * Service and Parts dealers and additional &* e,clusive Parts dealers1 4 $egional !ffices and >ation7wide =erritory !ffices support it1 =wo dealers serve the #arthmoving #@uipment and Power Products market from 2 locations spread across the country1 2**&4 /M has invested a BsignificantB amount for three years to 2uild up production capacity for auto components /industan Motors also has an auto components su2sidiary which makes automotive castings4 forgings and stamping !ver a period of time4 sales from auto components could 2e as high as 3*74*C +irst mover advantage in several areas like Internet selling4 sturdy car Mitsu2ishi source components from /industan sourcing components from a low cost 2ase like India through partner /industan Motors will prove 2eneficial for Mitsu2ishi4 especially when it is facing pro2lems1 /industan Motors already supplies engines and other auto components to MD M4 8M and +ord in India1 %ith Mitsu2ishi sourcing components4 and /M possi2ly manufacturing some of them4 the Indian partner would 2e a2le to use some of its idle capacity and shore up its 2ottom line1

W!(<2!11 <efore )*Es .=he 6icense $aFG =his lack of product activity in the Indian market was mainly due to the Indian governmentEs comple, regulatory system that effectively 2anned foreign7owned operations1 %ithin this system .referred to informally as the Blicense raFBG4 3ny Indian firm that wanted to import technology or products needed a licenseHpermit from the government1 =he difficulty of getting these licenses stifled automo2ile and component imports4 creating a low volume high cost car industry that was inefficient4 unprofita2le4 and technologically o2solete1 =he dominant product 3m2assador4 although customized to the poor road conditions in India4 were 2ased on a stale design concept .with outdated featuresG4 and were also fuel inefficient1 Inefficiency of #mployees4 !utput of each employee was less due to 9nion interference Inefficient management principles 6ess presence in premium segment1 6acks glo2al tic7ups and thus finding it hard to tap e,port markets1

O,,/)$#2%$%!1 #fficiency through management principles1 #,ports1 *

3c@uisitions for strengthening its distri2ution tie7ups1 #ntry into other related diversification categories like =ruck parts manufacture4 and other parts automotives1 0an 2ring out more sophisticated cars with high technology standards

T+)!($1 #mergence of strong players in the market mainly overseas competitors 6ack of employee motivation 6ack of design for cars .mainly new age look for carsG

L+TE*AT-*E /-*.E0
"@#-'8% - II
It is often remarked that the economic pro!ress of a nation is (est reflected (y the state of its automo(ile industry. 'he reason for this lar!ely comes from the e3tent to which a host of other industries depend on the pro!ress of the automo(ile industry. In India, the form and shape of the industry has chan!ed (eyond reco!nition over the last decade. # host of new passen!er cars and swanky motor(ikes have in some manner contri(uted to the fact that !lo(al auto ma;ors are lookin! at India very seriously X not ;ust from a manufacturin! point of view (ut as an e3port (ase as well. Arom a phase when !rowth rates were more than healthy, the sector has (een on a (it of a rocky path now. 'hose trackin! the industry have (een =uite unam(i!uous in callin! it a slowdown. 'he issue is where thin!s are headed from this point onwards with the inflation rate hittin! record hi!hs and the sector itself, as a conse=uence, reelin! under escalatin! cost of inputs. 'he issues on hand )ack of the envelope calculations su!!est that raw material prices have increased (y a(out +0& for some players and dou(led for the less fortunate ones. ,ilip "henoy, director !eneral, 9I#1, points out that a com(ination of factors like hi!h interest rates, risin! levels of inflation, lack of easy finance and !lo(al oil prices are starin! the auto ma;ors in the face. M'o com(at this, there are a slew of measures that companies are takin! like workin! in colla(oration with component manufacturers, researchin! on cheaper materials to su(stitute steel and aluminium,N he adds. 'he passen!er car story is not radically different and the lar!est player, 1aruti, is ne!otiatin! fresh contracts with its suppliers after lookin! at the overall impact of risin! input costs. MDe have taken a reasona(le part of increased input costs on to us. )ut if the cost pressures continue to mount, we may not (e a(le to sustain it,N says the company?s spokesperson. 'he panic (utton has actually (een pressed for a while now. 'o su(stantiate that, passen!er car makers have (een operatin! (elow capacity for a while. %ecently, 1aruti closed one of its plants for two days.
1

Other volume players like 'ata 1otors and 1ahindra 7 1ahindra 01712 have (een ad;ustin! production to tide over the lean season. M#s an or!ani<ation, there is an increased focus on curtailin! unnecessary processes as we face cost pressures from the O81s 0ori!inal e=uipment manufacturers2 and raw material suppliers,N says C T 1inda, chairman, 1inda $roup, an automo(ile component manufacturer. 'he =uestion here to (e asked is rather o(vious X how much of the increased costs can (e passed on to the consumer. 'he country?s lar!est two-wheeler manufacturer, @ero @onda, has ;ust undertaken a price increase ran!in! from %s *00-*,+00 across its ran!e. MDe were the last ones in the industry to do so,N defends #nil ,ua, the company?s senior vice-president 0marketin! and sales2. 1otorcycle manufacturers have raised prices on two occasions this year. Dhat needs to (e done nowY 'his is not the first time that the automo(ile industry is encounterin! a phase like this. 9tran!ely enou!h, some players have stuck to their tar!ets and think they can (e achieved. 'ake a look at @yundai 1otor India for instance. Its mana!in! director, @ 9 :heem is (ullish on the outlook and says the company is stickin! to the tar!et of sellin! more than five lakh cars this year. MDe will also dou(le capacity at our 9riperum(udur plant to si3 lakh cars in 2009. India will continue to remain !lo(al hu( for @yundai for producin! small cars,N he says. $oin! overseas is one option and those like #shok :eyland speaks of it =uite emphatically. M:eavin! aside the lar!e demand markets, which also have lar!e manufacturers to support themselves, there are still 5+& of developed markets left for our company to e3plore. 'his is especially when there is an estimated *H5 advanta!e in development cost that Indian !reenfield pro;ects en;oy over 8uropean ones,N says the company?s mana!in! director, % 9eshasayee. 1eanwhile, 'ata 1otors and 171 are !ettin! innovative in difficult times. 'he former, for instance, is closely lookin! at the option of launchin! electric vehicles and hy(rid versions. 'his is lar!ely to counter the risin! fuel prices. 'ata 1otors is in dialo!ue with Corway-(ased 1il;o(il $reenland to develop an electric vehicle on the Cano platform and with "hrysler for the #ce. MDhile it may take some time to !et infrastructure in place and develop the technolo!y, we want to (e ready when the market takes off,N said a 'ata 1otors official. 'he e3port (u! has (itten these players and includin! )a;a; #uto as well. #ll this is takin! place at a time when investments worth %s 0,000 crore for 200 -*0 have (een delayed. #mon! these is the case of Aord 1otor India which has not firmed up its e3pansion strate!y despite announcin! a fresh investment of %s 2,*00 crore. Dorryin!ly, @onda 1otorcycle and 9cooter India have put off their plans for a second plant. @ere are the hard num(ers to su(stantiate some of that X the passen!er car se!ment has seen sales fallin! (y *.7*& to 7,725 cars from last year?s level of 9,2+0 cars. 8ven the financials of companies have (een affected. 'ata 1otors? profit fi!ures for the most recent =uarter 0second =uarter of AG092 was the worst ever for the company in the last si3 years.

"@#-'8% J IIIH -%O):81 9'#'818C'

'he first step in any 1arketin! %esearch calls for the researcher to define the pro;ect scope and then define pro(lem carefully and formulate the research O(;ectives. #n old a!e says, # -ro(lem well defined is half solved. In today/s scenario where we have numerous automo(ile -layers present in ,elhiIC"% havin! similar kind of offerin!s. In this kind of scenario if a new -layer has to enter a crowded place like this> it has to under!o an in-depth market analysis of -layers already present and off-course the customers. #mon! these studies is the study of se!mentin!, tar!etin! and positionin!. In a 1arket like India, the (rand plays a ma;or role in makin! consumer preference. #s more and 1ore players enter the market> pricin! does not remain a sustaina(le lever to play in lon! term. In order to differentiate, players will need to look to their (rand/s emotional appeal. %esearch aims at findin! where and how a new player can se!ment, tar!et and position itself and Dhat is the difference (etween se!mentin!, tar!etin! and positionin! efforts of present players.

"@#-'8% J I6
3

(ESE0(C; OBCEC*I E :

'he first and the foremost step in any marketin! research pro;ect is to define the o(;ective i.e., the researcher should take into account the purpose of the study [main o(;ective\, the relevant information needed and how it will (e used in decision makin!I (ack!round information. Once the pro(lem has (een identified and the researcher set the o(;ective and, the research can (e desi!ned and conducted properly. 'he (asic o(;ective of the marketin! survey wasH 'o understand customer re=uirement from the product. 'o analy<e pros and cons of vehicles provided (y the firms. 'o identify the relevant factors that influence customer. 'o understand (rand se!mentation done (y the firms. 'o analy<e tar!et approach (y the firms.

'o identify how firms are usin! positionin! approach amon! customers.

+or this purpose we have designed a @uestionnaire and had it filled 2y the method of direct personal interview with people1 %e have a sample size of 1**4 which we analyzed and concluded 2y giving our suggestions to the players in the industry1

T*PE O2 RESEARCH CON.UCTE.

E?ploratory researc!: 83ploratory research is to e3plore or search throu!h a pro(lem or situation to provide insi!hts and understandin!. 83ploratory research could (e used for followin! purposesH

# review of market research to identify the relevant factors that influence

customer.

Interviews with industry e3perts to determine the preference and satisfaction level
amon! them.

# comparative analysis of pros and cons of products provided (y different

automo(ile firms to !ain some idea of the factors that influence (etter performance.

'o determine the factors that customers consider important in selectin! vehicles.

%898#%"@ 18'@O,O:O$GH
'actical Information 9ystems are desi!ned to support recurrent decision makin! situations therefore the information re=uirements can (e determined ahead of time. 'his allows for reports to (e produced re!ularly and in predetermined format0s2. $enerally aimed at operatin! and control levels of the or!ani<ation J this precludes they are (ein! prepared (y top-level mana!ement.

Airst we identify the *arget population> it is the collection of elements or o(;ects that posses
the information sou!ht (y the researcher and a(out which inferences are to (e made.

Cow

we look for the Sample frame> it is the representation of the tar!et population. It

usually is a list of population mem(ers used to o(tain a sample. De took a sample si<e 0the num(er of elements to (e included in the study2 of *00.

'hen we selected the Sampling tec!niDues (ein! used.

9electin! samplin! techni=ues involves several decisions of a (roader nature. 'he researcher must decide whether to use non-pro(a(ility samplin! or pro(a(ility samplin! also whether to use samplin! with or without replacement1

ME*;OD )SED:
1arket research (y collectin! information, data, o(servations usin! dis!uised mediums from the 1arketin! 83ecutives.

SO)(CES OF I<FO(M0*IO<:
#. ).

"rimary G Arom Vuestionnaires durin! the market research. Secondary G Arom Office documents, manuals and we(sites of the company.

&

S0M"%E SI9E:
3s the survey of the entire population is not possi2le and feasi2le to conduct due to time and cost constraint4 we have taken a sample size of 1** which represents the entire population1

S0M"%I<6 *EC;<IH)E:
0(E0 S0M"%I<6 # common form of cluster samplin! is area sampling, in which the clusters consists of !eo!raphic areas, such as counties, (locks, etc.

"%0CE OF S*)D::
-lace of the study were all the ma;or parts of 6urgaon.

0nalytical *ools )sed:

9-99 1icrosoft 83cel

'

C;0"*E( G

RESULT 3 ANAL*SIS
H@ >!ic! /rand of car do you driveI

Arom the a(ove chart we can draw the inference that the people are well satisfied with the 1aruti car and more than +0 & of the sample are currently usin! the vehicles.

I<*(E"(E*0*IO< J I<FE(E<CES:
'his shows there (rand loyalty towards the company and their faith towards the company. De find that the 1aruti car is ranked at the top most position, with such a !ood percenta!e we can easily make out that 1aruti "ars are liked (y most of the people. 'he or!ani<ation must keep on
(

conductin! the surveys, to identify the needs of the customer and there(y tryin! to fulfill them for its lon! run and to retain the market share.

H@ >ould you prefer to try any car from ot!er /randI

Arom the a(ove chart we can draw the inference that the people are well satisfied with their car (rand and are not lookin! forward to prefer any other (rand.

H@ If given a c!oice1 3!ic! type of car 3ould you preferI

Arom the a(ove chart it can (e interpreted that now-days people are mainly focusin! on (uyin! compact cars as compared to others. 'his could (e useful in the ways that companies should provide (etter compact cars with afforda(le prices so as to attract more and more customers.

&*

H@ >!ic! kind of car do you admire to !aveI

Arom the a(ove data we can make out that thou!h people prefer to have a compact car (ut they admire to have a lu3ury car i.e. almost 50 & of the customers admire to have lu3ury car followed (y 2.& of customers !oin! for 9B6 cars to enhance their lifestyle.

&1

H@ Importance you pay to t!em 3!ile purc!asing a car

Arom the a(ove chart we can draw the information that the most of the people !ive much preference to the price and milea!e and also some importance towards performance, after sales services etc.

I<*(E"(E*0*IO< J I<FE(E<CES:
9ince consumers consider more than one factor for (uyin! a car. 1ost of them have chosen (ecause price, milea!e, performance, after sales services (ecause people of our country are much aware a(out the value of the money. 'his car provides and fulfills most of the needs like reasona(ly priced, !ood milea!e, etc.

&2

H@ >ould you prefer a petrol ve!icle or a diesel ve!icleI

Arom the a(ove chart we can make out that people i.e. .* & of the respondent would prefer petrol vehicle over diesel mainly (ecause of hi!h maintenance cost of diesel en!ines.

&3

H@ I 3ill associate t!e attri/ute S)CCESSF)% 3it! K

It?s clear from the !raph a(ove that mostly respondents associate the attri(ute 9B""899AB: to the (rand M1#%B'IN. It is mainly due the presence of the (rand amon! the customers and there(y providin! their customers with (etter servicesIproducts.

&4

H@ I 3ill associate t!e attri/ute *O)6; 3it! K

Arom the chart a(ove we can interpret that in India '#'# is consider as the tou!h (rand amon! other (rands of cars. 'his may (e due to the fact that '#'# 1otors are also famous for providin! heavy vehicles used for various car!o purposes.

&

H@ I 3ill associate t!e attri/ute F)p-*o-DateF 3it! K

Arom the chart a(ove we can interpret that @GBC,#I is consider as the B--'O-,#'8 (rand amon! other (rands of cars. 'his may (e due their technolo!y factor (een provided (y the (rand.

&&

H@ I 3ill associate t!e attri/ute LDo3n to Eart!M 3it! K

Arom the chart shown a(ove we can interpret that (oth 1#%B'I and '#'# are considered as the ,ODC-'O-8#%'@ (rand ;ust (ecause these (rands have shown their presence amon! customers either (y providin! them with (etter sales services or (e it their products.

&'

H@ I 3ill associate t!e attri/ute LOutdoorsyM 3it! K

Arom the chart a(ove it can (e interpreted that '#'# (rand is considered as a masculine (rand amon! all other (rands. 'his may (e due to the performance level amon! their cars.

&(

H@ I 3ill associate t!e attri/ute (E%I0B%E 3it! K

De could interpret from the a(ove chart that (oth 1#%B'I and '#'# are considered as a %8:I#):8 (rand amon! customers.

&)

H@ ANALYSIS OF THE CAR BUYERS ON THE BASIS OF INCOME

'he people with the income !roup of up to 5 lakh would like to (uy the small car like 9#C'%O, #:'O, etc. )ut the people of income !roup from 5-*0 and a(ove *0 lakhs would like to (uy the (i! se!ment car like accent, 9Q5, etc.

'*

H@ 0<0%:SIS O< *;E B0SIS OF 06E 6(O)"@

'he ma3imum (uyers of @yundai cars as per the survey show that the customers from the a!e !roup of 3*-50 and 50 years a(ove. 'he people from a!e !roup (elow 20-30 years are less (uyers of the vehicle. 'he a!e !roup i.e. from 20-30 will have started earnin! and the people at the a!e !roup from 3*-50 and a(ove 50 years, who are independent and are settled in the life and are a(le to afford the e3penses. 9o they are the ma;ority (uyers of the car.

'1

I<*E("(E*0*IO<
'he car (rands were evaluated on the (asis of si3 attri(utes- successful, tou!h, upto-date, down to earth, outdoo rsy and relia(ility to understand the (rand ima!e of each of the (rands. 'he study reveals that 1aruti had an ima!e of (ein ! 9uccessful, ,own-to-earth and %elia( le while @yundai has an ima!e of (ein! Bp-to-date. 'he respondents feel that '#'# has a 'ou!h and Outdoorsy ima!e while it la!s in up-to-date attri(ute. 'his !raph t herefore, provides a clear ima!e profilin! o f each of the (rands amo n! the chosen respondents.

'2

Interpretation
Arom the a(ove !raph we can interpret that respondents (etween a!e !roup of 20 30 years mainly prefer to have either compact o r sports features within their vehicle, whereas people within the a!e !roup of 3*-5 0 years prefers to have sedan or lu3ury car . Aurther people within the a!e !roup of 50 years and a(ove mainly prefer to have lu3ury and 9B6/s.

'3

Interpretation
'he respondents were cate!ori<ed on the (asis o f their income !roup to understand importance !iven (y them to various attri(utes while purchasin! a car. It is clearly o(served that respondents havin! income in the (racket of K2 lakhs p.a are price sensitive and also !ive preference to milea!e and after sales services, whereas people havin! income in the (racket of 2 to 5 lakhs !ive e=ual wei!hta!e to price, performance and milea!e. -eople havin! the income in the (racket of 5 to *0 lakhs and a(ove *0 lakhs are also price sensitive.

'4

ROLE OF FINANCE IN AUTOMOBILE SECTOR

MARUTI SU=UKI FINANCIALS RATIOS :

Key Financial Ratios of Maruti Suzuki ndia

Mar !"#

Mar !""

Mar !"$

Mar !$%

nvest&ent Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share ( s! &et Operating Profit Per Share ( s! Free eserves Per Share ( s! 5.00 7.50 "".#5 #'$30.77 5$0.6% 5.00 7.50 ##5.7$ #'$65.50 (7(.3$ 5.00 6.00 #$".3% #'0#(.77 (03.%$ 5.00 3.50 65.%" 7#7.50 3#%.(5

'

)onus in *+uit, -apital 'rofita(ility Ratios Operating Profit /argin (0! Profit )efore 1nterest 2nd 3a4 /argin (0! 5ross Profit /argin (0! -ash Profit /argin (0! 2d6usted -ash /argin (0! &et Profit /argin (0! 2d6usted &et Profit /argin (0! eturn On -apital *7plo,ed (0! eturn On &et 8orth (0! 2d6usted eturn on &et 8orth (0!

..

..

..

..

%.05 (.7" (.%5 7.6" 7.6" (.53 (.53 #3.5$ #0.76 #0.75 5$5.6%

".#( 6.$( 6.37 %.6" %.6" 6.#3 6.#3 $#.6" #6.50 #6.0% (7".""

#$.7( ".73 "."3 #0.7% #0.7% %.3( %.3( $7.%" $#.#0 $0.$" (0".65

".#% 5.6$ 5.77 ".#3 ".#3 5.7$ 5.7$ #7.37 #3.0( #3.$3 3$3.(5

eturn on 2ssets *4cluding evaluations eturn on 2ssets 1ncluding evaluations eturn on 9ong 3er7 Funds (0! )i*uidity And Solvency Ratios -urrent atio

5$5.6% #(.(%

(7"."" $#.7(

(0".65 $%.%0

3$3.(5 #7.(%

#.0$ 0.%" 0.07 ..

#.(7 #.#( 0.0$ 0.0$

0."# 0.6% 0.07 0.0(

#.5# #.$6 0.07 0.07

:uic; atio De<t *+uit, atio 9ong 3er7 De<t *+uit, atio +e(t Covera,e Ratios 1nterest -over

3".%5

#$6.0(

#05.3"

3(.$# '&

3otal De<t to O=ners Fund Financial -harges -overage Financial -harges -overage Post 3a4 atio atio

0.07 60.(7 5#.$5

0.0$ #67.5% #36.33

0.07 #30.0$ #00.#%

0.07 (%.06 3%.75

Mana,e&ent -fficiency Ratios 1nventor, 3urnover De<tors 3urnover atio atio atio atio atio $$.%0 3%.%( $$.%0 $.(6 $.$$ $.3( 33.33 ($."3 33.33 3.#3 $.5" 3.#3 30.(7 33."$ 30.(7 $.%$ $.3$ $.%$ 30.(6 $6.33 30.(6 $.3% $.06 $.3%

1nvest7ents 3urnover Fi4ed 2ssets 3urnover 3otal 2ssets 3urnover 2sset 3urnover atio

2verage a= /aterial >olding 2verage Finished 5oods >eld &u7<er of Da,s 1n 8or;ing -apital 'rofit . )oss Account Ratios /aterial -ost -o7position 17ported -o7position of -onsu7ed a= /aterials

#3.36 7.(6 #$.06

#0.0# (.56 $0.%0

#0.66 5.35 0.%3

#3.$# 3.#7 33.66

7".67 #0.60 $.%0 #0.3%

7%."" ##."" $.6$ ".56

77.$# #$.%" 3.#$ #5.("

77.#0 ##.70 3.56 7.$(

Selling Distri<ution -ost -o7position *4penses as -o7position of 3otal Sales Cas/ Flow ndicator Ratios Dividend Pa,out atio &et Profit

#5.3"

##.00

%.0"

".70 ''

Dividend Pa,out *arning

atio -ash Profit

".07 %(.5"

7.6$ %%.7$ "$.$( 0.#0

6.0% "#.5" "3.7( 0.$5

6.#( "0.(( "3."$ 0.36

etention atio atio

-ash *arning etention

"0."$ 0.3"

2d6usted -ash Flo= 3i7es

Mar !"#

Mar !""

Mar !"$

Mar !$%

*arnings Per Share )oo; Value

56.60 5$5.6%

7".$# (7".""

%6.(5 (0".65

($.#% 3$3.(5

HYUNDAI MOTORS RATIOS :

Key Financial Ratios of Hyundai Motors

Mar !"#

Mar !""

Mar !"$

Mar !$%

nvest&ent Valuation Ratios Face Value Dividend Per Share 5.00 .. 5.00 .. #0.00 .. #0.00 .. '(

Operating Profit Per Share ( s! &et Operating Profit Per Share ( s! Free eserves Per Share ( s! )onus in *+uit, -apital 'rofita(ility Ratios Operating Profit /argin (0! Profit )efore 1nterest 2nd 3a4 /argin (0! 5ross Profit /argin (0! -ash Profit /argin (0! 2d6usted -ash /argin (0! &et Profit /argin (0! 2d6usted &et Profit /argin (0! eturn On -apital *7plo,ed (0! eturn On &et 8orth (0! 2d6usted eturn on &et 8orth (0!

.5.73 $%.6( .. %.%7

.3."0 (3.5% .$."6 ".5#

.3.5( 3%.0% .%.0# ".5$

.3.(" 3%.%% .5.65 ".5$

.#"."" .$(.0( .$(.3" .$#.63 .$#.63 .5."5 .5."5 .7$.%5 .##".0" .5#%."# #.(5

.%."( .##.$( .##.33 .##.#% .##.#% 0.#0 0.#0 .((.53 $.$7 .$%".7$ $.05

.".$% .#$.0% .#$.#6 .#3.$5 .#3.$5 .%.$7 .%.$7 .65.$$ .#5%.0# .3(%.#3 $.0#

.%."6 .#$.#" .#$.$6 .#0.(# .#0.(# .6.#6 .6.#6 .3%.$$ .55.#% .#33.%5 (.37

eturn on 2ssets *4cluding evaluations eturn on 2ssets 1ncluding evaluations eturn on 9ong 3er7 Funds (0! )i*uidity And Solvency Ratios -urrent atio

#.(5 .$07.%(

$.53 .7".(5

$.(" .75.%%

(."$ .(7.5"

0.(5 0.(0

0.5% 0.3(

0.65 0.37

0.66 0.($ ')

:uic; atio

De<t *+uit, atio 9ong 3er7 De<t *+uit, atio +e(t Covera,e Ratios 1nterest -over 3otal De<t to O=ners Fund Financial -harges -overage Financial -harges -overage 3a4 atio atio Post

5.06 #.#7

(.0( #.%$

$."6 $.(#

#.55 #.0(

.5.60 5.06 .(.53 0.60

.$.73 (.0( .$.#$ #.6(

.7.5% $."6 .(.%0 .0.%5

.6.5% #.55 .(.$6 0.#7

Mana,e&ent -fficiency Ratios 1nventor, 3urnover De<tors 3urnover atio atio atio atio atio ".57 $3."% ".57 #.05 3.3( 3.00 ".## (0.6$ ".## #.(6 (.$( #.(6 #0.6( ($.37 #0.6( #.$% (.%# #.$% #0.60 $0.33 #0.60 #.30 $."6 #.30

1nvest7ents 3urnover Fi4ed 2ssets 3urnover 3otal 2ssets 3urnover 2sset 3urnover atio

2verage a= /aterial >olding 2verage Finished 5oods >eld &u7<er of Da,s 1n 8or;ing -apital 'rofit . )oss Account Ratios /aterial -ost -o7position 17ported -o7position of -onsu7ed a= /aterials

.. .. .(#.#5

(6."5 #0.0% .30.%3

36.(7 #0.65 .(5.%6

3".5$ %.($ .#$.3$

%6.#0 56.53

7%.0" 55.3%

76.67 (3.6(

7(."" (7.63

(*

Selling Distri<ution -ost -o7position *4penses as -o7position of 3otal Sales Cas/ Flow ndicator Ratios Dividend Pa,out Dividend Pa,out *arning atio &et Profit atio -ash Profit

.. 0.$7

#0."$ 0.07

##.%" 0.05

##.33 0.#$

.. .. ..

.. .. #00.00 #00.00 7.3"

.. .. .. .. ..

.. .. #00.00 .. ..

etention atio atio

-ash *arning etention

.. ..

2d6usted -ash Flo= 3i7es

Mar !"#

Mar !""

Mar !"$

Mar !$%

*arnings Per Share )oo; Value

.#.73 #.(5

0.05 $.05

.3.#7 $.0#

.$.(# 5.#%

@onda 1otors
)alance 9heets
(1

"onsolidated )alance 9heets

N $millions& *otal current assets Finance su/sidiari es-longterm receiva/l es1 net Investme nts and advances <et property on operating leases "roperty1 plant and eDuipmen t1 net Ot!er assets *otal assets *otal current
(2

F:7,, 2 +,*92,. 09

F:7,, + +,23*,+ .

F:7,, B 5,.2*,* 7

F:7,4 , 5,.*3,7 25

F:7,4 4 5,.90,0 57

3,039, 2.

2,707, 20

2,500,2 2

2,3.*,3 3+

2,35 ,9 *3

7+*,95 7

77*,92 2

.39,0. 9

.52,. *

.39,93 2

33.,20 9

9* ,97 2

*,2 7,7 99

*,30 ,* 57

*,3+7,. 32

2,07 ,7 2

2,20*,2 99

2,*57,7 2*

2,0 .,. .3

*,939,3 +.

.37,* * *2,03., +00 5,2 *,3

7 3,9. 2 *2,.*+, +53 5,.72,3

722, .

.*.,+. +

+95,99 5 **,+70, 75 3,+. ,*

**, * , 9*7 5,237,3

**,.29, **+ 3,5*9,*

lia/ilities %ongterm de/t Ot!er lia/ilities *otal lia/ilities *otal ;onda Motor Co@1 %td@ s!are!old ersF eDuity <oncontrollin g interests *otal eDuity *otal lia/ilities and eDuity

*3 *,90+,7 53 *,237,7 *2 7,525,7 . 5,5 2+ ,

3. *, 3.,. +2 *,5*5,2 70 7,923,2 + 5,++0,5 79

. *,932,. 37 *,+* ,+ . 7,. 73 5,007,2 ,+

30 2,3*3,0 3+ *,550,+ 20 7,*72,. + 5,32 ,. 50

92 2,053,2 50 *,37.,+ 30 .,9 7,9 .2 5,559,9 7+

*22,90 7

*5*, 0 .

*23,0+ .

*27,79 0

*32,93 7

5,.**,7 32 *2,03., +00

5,.92,2 + *2,.*+, +53

5,*30,3 55 **, * , 9*7

5,5+.,5 30 **,.29, **+

5,+ 2,9 *2 **,+70, 75

Financial Inde?
N $millions& *otal F:7,, 2 *2,03., F:7,, + *2,.*+, F:7,, B **, * , F:7,4 , **,.29, F:7,4 4 **,+70,

(3

assets ;onda Motor Co@1 %td@ s!are!old ersF eDuity (eturn on EDuity

+00 5,5 2+ ,

+53 5,++0,5 79

9*7 5,007,2

**+ 5,32 ,. 50

75 5,559,9 7+

37.3&

3..*&

33.9&

37.2&

3 .+&

TATA MOTORS RATIOS :

Key Financial Ratios of 0ata Motors

Mar !"#

Mar !""

Mar !"$

Mar !$%

nvest&ent Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share ( s! &et Operating Profit Per Share ( s! Free eserves Per Share ( s! )onus in *+uit, -apital 'rofita(ility Ratios Operating Profit /argin (0! 7.70 ".%# ##.(0 6.7# (4 $.00 (.00 #3.#6 #70.%( 55.$5 #7.53 #0.00 $0.00 7(.#5 755.6" $%7.53 #7.53 #0.00 #5.00 70.6% 6#"."% $$".67 #".50 #0.00 6.00 33.5$ ("".$3 $#7.77 $#.6(

Profit )efore 1nterest 2nd 3a4 /argin (0! 5ross Profit /argin (0! -ash Profit /argin (0! 2d6usted -ash /argin (0! &et Profit /argin (0! 2d6usted &et Profit /argin (0! eturn On -apital *7plo,ed (0! eturn On &et 8orth (0! 2d6usted eturn on &et 8orth (0!

(.6" (.7( 6.$6 6.$6 $.$6 $.$6 #0.36 6.($ ".(( 60."5

6."# 6."7 6."( 6."( 3.7( 3.7( #0.#" ".06 ".(6 3#(."3

%.3% %.(7 7.$6 7.$6 6.$6 6.$6 #0.37 #5.#5 ".6# $5".03

3.$0 3.30 6."7 6."7 3.77 3.77 6.(# %.0" 7.(5 $(0.60

eturn on 2ssets *4cluding evaluations eturn on 2ssets 1ncluding evaluations eturn on 9ong 3er7 Funds (0! )i*uidity And Solvency Ratios -urrent atio

6#.03 ##.("

3#5.3# #$.0#

$5".(6 #$.$6

$(#.0" %.%"

0.5# 0.(0 0.57 0.(#

0.53 0.5( 0.%0 0.5$

0.(( 0.(( #.#$ 0.%0

0.(( 0.5% #.06 0.("

:uic; atio De<t *+uit, atio 9ong 3er7 De<t *+uit, atio +e(t Covera,e Ratios 1nterest -over 3otal De<t to O=ners Fund Financial -harges -overage atio

3.70 0.57 3."0

$.6( 0.%0 3.70

$.6# #.#$ 3.56

$.(3 #.06 3.6( (

Financial -harges -overage 3a4

atio Post

3.3(

3.37

3.7(

3.73

Mana,e&ent -fficiency Ratios 1nventor, 3urnover De<tors 3urnover atio atio atio atio atio #3.37 $0.($ #3.37 $.65 $.$" #.6( #3.%6 #".$0 #3.%6 $.$$ #.35 $.$$ #3.50 #7."$ #3.50 #."5 #.#( #."5 #3.(7 #".## #3.(7 #.%% #.0$ #.%%

1nvest7ents 3urnover Fi4ed 2ssets 3urnover 3otal 2ssets 3urnover 2sset 3urnover atio

2verage a= /aterial >olding 2verage Finished 5oods >eld &u7<er of Da,s 1n 8or;ing -apital 'rofit . )oss Account Ratios /aterial -ost -o7position 17ported -o7position of -onsu7ed a= /aterials

#6."( #7.#$ .6#."%

#".%0 #5.0" .3#.((

#5.66 #7.70 .7(.73

$0."0 #3.6( .$%.#"

75.77 (.%$ (.37 6.7%

73.07 5."0 (.77 7.00

7#.70 5."( (.(7 %.6#

73.$6 5.%$ (.77 ".("

Selling Distri<ution -ost -o7position *4penses as -o7position of 3otal Sales Cas/ Flow ndicator Ratios Dividend Pa,out Dividend Pa,out *arning atio &et Profit atio -ash Profit

##7.7# 5#.3$ #".""

%0."6 ((.7( $$.($

((.$% $".0$ 30.$$

3(.5$ #7."( 6$.(" (&

etention atio

-ash *arning etention

atio

57.(3 3.$#

56.3$ (.73

6#.%( 6.(0

%#.$" 7.#3

2d6usted -ash Flo= 3i7es

Mar !"#

Mar !""

Mar !"$

Mar !$%

*arnings Per Share )oo; Value

3."# 60."5

$%.55 3#(."3

3".$6 $5".03

#".(% $(0.6(

Source 1 +ion 2lo(al Solutions )i&ited

('

Conclusion

"@#-'8% J 6I
)rand se!mentin!, tar!etin! and positionin! is an essential preliminary activity, or fundamental decision to developin! successful marketin! communication pro!rams. It is only (y havin! a statement, company can decide to whom the (rand should (e tar!eted, what should say a(out the (rand, and what media and messa!e vehicles should contact tar!et customers. "onsumers are (om(arded with information a(out products or services. 'o r e-evaluate products or services every time they make a (uyin! decision is impossi(le. 'o simplify their (uyin! consumers or!ani<e products or services into cate!ories that is they position the products, services and or!ani<ations in their minds. %elatin! the findin!s of the research with )rand -ersonality prism (y #aker we can that @yundai has occupied an ima!e of (ein! a hi!h spirited and charmin! (rand that takes care of its customers and have concern for them whereas 1aruti is a sincere and competent (rand. 'ata is considered to (e a hi!h on ru!!edness as it scores hi!h on (ein! a tou!h (rand. On other parameters, 1aruti is considered to (e the leader when we talk of market shares while 'ata and @yundai need to improve their market shares. 9e!mentin!, tar!etin! and positionin! on this parameter can really help the players as accordin! to the research this I the most important parameter for customers to consider while choosin! a vehicle.

((

FI<DI<6S De find that the 1aruti car is ranked at the top most position with +3&. +2& people are well satisfied with their car (rand and are not lookin! forward to prefer any other (rand. 5*& people are mainly focusin! on (uyin! compact cars as compared to others. 50 & of the customers admire to have lu3ury car followed (y 2.& of customers !oin! for 9B6 cars to enhance their lifestyle. 5+& people prefer price while (uyin! a car over other factors. .* & of the respondent would prefer petrol vehicle over diesel mainly (ecause of hi!h maintenance cost of diesel en!ines. +2& people associate the attri(ute 9B""899AB: to the (rand M1#%B'IN . '#'# is considered as the tou!h (rand amon! other (rands of cars (y 50& people. @GBC,#I is considered as the B--'O-,#'8 (rand amon! other (rands of cars (y 35& people. )oth 1#%B'I and '#'# are considered as the ,ODC-'O-8#%'@ (rand (y 53& and 5*& of people respectively. 1#%B'I and '#'# are considered as a %8:I#):8 (rand amon! customers (y 53& and 5*& people respectively. -eople with the income !roup of up to 5 lakh would like to (uy the small car like 9#C'%O, #:'O, etc. )ut the people of income !roup from 5-*0 and a(ove *0 lakhs

would like to (uy the (i! se!ment car like accent, 9Q5, etc.

()

S)66ES*IO<S

1aruti 9u<uki must keep on conductin! the surveys, to identify the needs of the customer and there(y tryin! to fulfill them for its lon! run and to retain the market share.

"ompanies should focus on (etter compact cars so as to attract more and more customers. "ompanies should focus on pricin! of the cars that provides value of money. "ompanies should focus on diesel cars as they are much more preferred over petrol cars. 'ata 1otors should work hard to create ima!e of 9B""899AB: (rand as comparison to 1aruti 9u<uki (ut lon! term ima!e is hi!hly affected (y service =uality and maintenance in automo(ile industry.

@yundai needs to work on its /%elia(ility? value as compared to 1aruti 9u<uki and 'ata 1otors (y (etter =uality control measures.

"ompact car makers should focus on people of income !roup 2-5 lakh as more people of this !roup are interested to (uy compact cars.

)*

BIB%IO6(0";:
BOO'S:

"!ilip 'otler G Marketing Management <ares! '@ Mal!otra G Marketing (esearc!

I<*E(<E* SI*ES:
http-HHeconomictimes1indiatimes1comHsearch1cms http-HHwww1acmainfo1comH 0#utomotive

component manufacturers association of

India2
http-HHwww1siamindia1comH 09ociety http-HHwww1marutisuzuki1comH http-HHwww1hyundai1co1inH http-HHwww1tatamotors1comH http-HHwww1google1co1inHsearchIhlJenD@

of Indian automo(ile manufacturers2

)1

ANNE>URE

5-E/T+ONNA+*E
*.2 ,o you have a carY GesH 2.2 If Ges, which (rand of car do you driveY 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^ CoH 0If Co, Tindly !o to V +. 2

3.2 Dould you prefer to try any car from other (randY Ges 5.2 If yes, which (randY 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^ Co

+.2 If !iven a choice, which type of car would you preferY "ompact 9edan :u3ury 9ports 9B6

..2 Dhich kind of car do you admire to haveY "ompact 9edan :u3ury 9ports 9B6

7.2 %ate the followin! parameters on the scale of * to 7 accordin! to the importance you pay to them while purchasin! a car 0*- 9tron!ly ,isa!ree , 7- 9tron!ly #!ree 2 -rice Vuality Innovative 9pecial Offers -erformance 1ilea!e
)2

#fter 9ales 9ervice

.2 %ank on the scale of * to + for the vehicle you currently ownH -erformance 1ilea!e 'echnolo!y -rice #fter 9ales 9ervice

9.2 Dould you prefer a petrol vehicle or a diesel vehicleY -etrol ,iesel

*0.2 I will associate the attri(ute 9B""899AB: with P 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^

**.2 I will associate the attri(ute 'OB$@ with P 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^

*2.2 I will associate the attri(ute SBp-'o-,ateS with P 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^

*3.2 I will associate the attri(ute /,own to 8arth? with P 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^

*5.2 I will associate the attri(ute /Outdoorsy? with P 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^

*+.2 I will associate the attri(ute %8:I#):8 with P 1aruti @yundai 'ata If other, specify ^^^^^^^^^^^^^^^^

)3

"E(SO<0% "(OFI%E <ame: 6ender: 0ge /racket K 20-30 years Income /racket K K 2: p.a 2 to 5: p.a 5 to *0: p.a L*0: p.a ,on?t want to disclose 3*- 50 years 50 years and a(ove

)4