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A

Project report

On

PROCESS OF HOME LOAN


FINANCING BY BANK

UNDERTAKEN IN

HDFC BANK LTD.


As partial fulfillment for the award of MBA degree under B.R. Ambedkar Agra

University Agra U.P.

( 2007 – 09)

Under the guidance of: Submitted By

Mr. Vivek Drivedi Km. Krishna Jaiswal

Roll No- 22

SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE

BUSINESS MANAGEMENT & ECONOMICS, AGRA

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CERTIFICATE

To whom it may concern

This is to certify that Km. Krishna Jaiswal, Roll No. 22 of MBA is a Bonafide regular

student of Seth Padam Chand Jain Institute of Commerce Business Management &

Economics, Agra for the session 2007-09.

She has completed the summer training project report entitled “PROCESS OF HOME

LOAN FINANCING BY BANK” in the organizations HDFC Bank Ltd. as a part

fulfillment for the award of MBA degree under B.R. Ambedkar Agra University Agra

U.P.

I find the research report is up to standard and original one.

Executive Director

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CERTIFICATE

To whom it may concern

This is to certify that Km. Krishna Jaiswal, Roll No. 22 of MBA is a Bonafide regular

student of Seth Padam Chand Jain Institute of Commerce Business Management &

Economics, Agra for the session 2007-09.

She has completed the summer training project report entitled “PROCESS OF HOME

LOAN FINANCING BY BANK” in the organizations HDFC Bank Ltd. as a part

fulfillment for the award of MBA degree under B.R. Ambedkar Agra University Agra

U.P.

I find the research report is up to standard and original one.

Mr. Vivek Drivedi

Project Supervisor

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DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic

entitled “Process of Home Loan Financing by Bank” at Seth Padam Chand Jain

Institute of Commerce Business Management & Economics, Agra.

I further declare that this project work is based on my original work and no part of

this project has been published or submitted to anybody.

Krishna Jaiswal

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CONTENTS

Acknowledgement

Executive Summary

Theoretical Concepts

Introduction/ Statement of Problem

Scope of the Study & Importance of the Study

Objective of the Study

Research Methodology

Introduction of the Organization

Data Presentation & Analysis

Findings of the Study

Recommendations

Bibliography

Appendix

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ACKNOWLEDGEMENT

I, Krishna Jaiswal, MBA Student in SPCJ Institute of Commerce Business

Management & Economics, Agra is highly greatful to all those who guided me in

completing this project.

First of all, I would like to pay my heartiest thanks to especially Mr. Naveen

(Operation Manager) HDFC Bank Ltd., Gorakhpur who provided me such a

wonderful opportunity to do Summer Training and provided their valuable suggestions

in understanding the work of Research Project.

Last but not the least, I would like to thanks all faculties of SPCJ Institute of

Commerce Business Management & Economics, Agra, who gave me the useful tips

and suggestions regarding project. I would like to thanks my project supervisor, Mr.

Vivek Drivedi for imparting her valuable guidance to me.

Words can never express the deep sense of gratitude, I feel for our MBA

Coordinator, Mr. Neeraj Gupta, who has been a constant source of inspiration and

encouragement for me.

KRISHNA JAISWAL

MBA-3rd SEM.

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Summer training is an integral part of MBA program it helps the student to understand

the practical aspect of financing. To understand the important aspect of financing, I

choose HDFC Bank Ltd. Gorakhpur For my training, which is hard core financing

company.

In the summer training my project topic was “Customer Profiling and Purchase

Parameters”. My project aim to know the factors which influences the purchase decision

of customer regarding their vehicles.

Maruti udyog limited (MUL) was established in feb.1981 through an act of the

parliament to meet the growing demands of personal modes of transport caused by the

lack of an efficient public transport system.

Suzuki motor company was chosen from seven prospective partners worldwide.

this was due not only to their undisputed leadership in small cars but also to their

commitment to actively bring to MUL contemporary technology and japans management

practices.

A license and and a joint venture agreement was signed between Govt.of India

and Suzuki motor company in October .1982

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My objective in this two months summer training is to study the factors which

influences a customers to make their purchase decision regarding personal motor

vehicles.

The main objective of my survey is :-

 to find out the general impression of customer towards maruti Suzuki and

analyze its problems and find out possible solutions to rectify their problems

 The most effective media of promotion.

 The marketing situation of MARUTI SUZUKI in Gorakhpur.

 To know the Purchase Parameters of Customers.

Purpose

This report aims to understanding the changing dynamics of Automobiles Industry in

India. This report also aims aligning the MARUTI SUZUKI practices, with the best

available practices of industry.

Methods

Descriptive approach – Questionnaire

Exploratory approach – Informal Interview, Web search

For information about Indian dairy market – Search through Internet

For market dynamics in Gorakhpur market – Survey Methodology

Including questionnaire + Informal interview.

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THEORETICAL CONCEPTS

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THEORETICAL CONCEPTS

MARKETING MIX

Meaning and Definition

Marketing Mix means to collect and mix the resources of marketing in the manner that

objects of the enterprise may be achieved and maximum satisfaction may be provided to

the consumers. The term marketing mix is used to describe a combination of four

elements – the product, price, physical distribution and promotion. These are popularly

known as “Four P’s”. A brief description of the four elements of marketing mix (Four

P’s) is.

 Product : The product itself is the first element. Products most satisfy
consumer needs. the management must, first decide the products to be

produced, by knowing the needs of the consumers.

 Price : The second element to affect the volume of sales is the price. The
market or announced amount of money asked from a buyer is known as basic

value placed on a product.

 Promotion : The product may be known to the consumers. Firms must


undertake promotion work-advertising, publicity, personal selling etc. which

are the major activities.

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 Place : Physical distribution is the delivery of products at the rights time and
at the right place. The distribution mix is the combination of decisions relating

to marketing channels, storage facility, inventory control, location

transportation warehousing etc.

Marketing Mix

Place
Product Price Promotion Channels
Product variety List price Sales promotion Coverage
Quality Discounts Advertising Assortments
Design Allowances Sales force Locations
Features Payment period Public relations Inventory
Brand Name Credit cards Direct marketing Transport
Packaging
Sizes
Services

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Consumer Behaviors

What is Consumer Buying Behaviors?

Definition of Buying Behaviour,

Buying Behaviour is the decision processes and acts of people involved in buying and

using products.

Need to understand:

 Why consumers make the purchases that they make?

 What factors influence consumer purchases?

 The changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A

firm needs to analyze buying behaviour for:

 Buyers' reactions to a firms marketing strategy has a great impact on the firm's

success.

 The marketing concept stresses that a firm should create a marketing mix(MM)

that satisfies (gives utility to) customers, therefore need to analyze the what,

where, when and how consumers buy.

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 Marketers can better predict how consumers will respond to marketing strategies.

CONSUMER BEHAVIOR

Consumer behavior is the study of the behavior of consumers, when they go to purchase

something to satisfy their needs and wants.

Buying Motives

A motive can be defined as a drive or an urge for which an individual seeks satisfaction.

It becomes a buying motive when the individual seeks satisfaction through the purchase

of something.

Behavior is a goal activity.

Motive / Need Goal (Preparing)


(Hungry)
Goods
(Food)
Behavior
Goal achievement
(Eating)

Factors Influences Consumer Behavior

Consumer’s behavior is influenced by cultural, social, personal, and psychological

factors. Cultural factors exert the broadest and deepest influence.

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Cultural Factors : Culture, subculture, and social class are important in buying behavior.

1. Culture : Culture is the most fundamental determinant of a person’s wants and

behavior through his or her family and other key insinuations. A child growing

up in the United States is exposed to the following values : achievement and

success, activity, efficiency and practicality, progress, material comfort,

individualism, freedom, external comfort, humanitarianism and youthfulness.

2. Subculture : Each culture consists of smaller that provide more specific

identification and socialization for their members. Subculture include

nationalities, religions, racial groups and geographic regions. Many

subcultures make up important market segments, and marketers often design

products and marketing programs tailored to their needs.

3. Social Class : Virtually all-human societies exhibit social stratification.

Stratification sometimes takes the form of a caste system where the members

of different castes are reared for certain roles and cannot change their caste

membership.

(II) Social factors : In addition to cultural factors, a consumers behavior is

influenced by such social factors as reference groups, family, and social roles

and statuses.

1. Reference Groups : A person’s reference groups consist of all the groups that have

a direct (face-to-face) or indirect influence on the person’s attitudes or behavior.

2. Family : The family is the most important consumer buying organization in

society, and it has been researched extensively. Family members constitute the

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most influential primary reference group. We can distinguish between two

families in the buyer’s life.

3. Roles and Statuses : A person participates in many groups – family, clubs,

organizations. The person’s position in each group can be defined in terms of role

and status.

(III) Personal Factors

A buyer’s decisions are also influenced by personal characteristics. These include the

buyer’s age and stage in the life cycle, occupation, economic circumstances, lifestyle

and personality and self-concept.

 Age and stage in the cycle : People buy different goods and services over a

lifetime. They ear baby food in the early years, most foods in the growing and

mature years, and special diets in the later years. Taste in clothes, furniture

and recreation is also age related. Consumption is shaped by the family

lifecycle. Some recent work has identified psychological life-cycle stages.

Marketers pay close attention to changing life circumstances – divorce,

widowhood, remarriage – and their effect on consumption behavior.

 Occupation and economic circumstances : Occupation also influences a

person’s consumption pattern. A blue-collar worker will buy clothes, work

shoes, and lunchboxs.

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 Lifestyle : People from the same subculture, social class and occupation may

lead quite different lifestyles. A lifestyle is the person’s pattern of living in the

world as expressed in activities, interests and opinions.

 Personality and self – concept : Each person has a distinct personality that

influences buying behavior.

 Psychological Factors : A person’s buying choices are influenced by four

major psychological factors-motivation, perception, learning and beliefs and

attitudes.

(i) Motivation : A person has many needs at any given time. Some needs

are biogenic; they arise from physiological states of tension such as

hunger, thirst, discomfort.

(ii) Perception : A motivated person is ready to act. How the motivated

person actually acts is influenced by his or her perception of the

situation.

(iii) Learning : When people act, they learn. Learning involves changes in

an individual’s behavior arising from experience. Most human

behavior is learned. Learning theorists that learning is produced

through the interplay of drives, stimuli, cues, responses , and

reinforcements.

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Beliefs and Attitudes : Through doing and acquire beliefs and attitudes. These in turn

influence buying behavior. A belief is a descriptive thought that the person holds

about something.

Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual

purchasing is only one stage of the process. Not all decision processes lead to a purchase.

All consumer decisions do not always include all 6 stages, determined by the de2ree of

complexity...discussed next. The 6 stages are:

1. Problem Recognition (awareness of need)--difference between the desired state and

the actual condition. Deficit in assortment of products. Can be stimulated by the

marketer through product information-- I.E., see a commercial for a new pair of shoes,

stimulates your recognition that you need a new pair of shoes.

2. Information search-

 Internal search, memory.

 External search if you need more information. Friends and relatives (word of

mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives.

3. Evaluation of Alternatives needs to establish criteria for evaluation, features the

buyer wants or does not want. Rank/weight alternatives or resume search. May decide

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that you want to eat something spicy. If not satisfied with your choices then return to

the search phase. Can you think of another alternative? Look in the yellow pages etc.

Information from different sources may be treated differently. Marketers try to

influence by "framing" alternatives.

4. Purchase decision--Choose buying alternative, includes product, package, store,

method of purchase etc.

5. Purchase May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive

Dissonance, have you made the right decision. This can be reduced by warranties,

after sales communication etc.

Types of Consumer Buying Behaviour

Types of consumer buying behaviour are determined by:

 Level of Involvement in purchase decision. Importance and intensity of interest in

a product in a particular situation.

 Buyer's level of involvement determines why he/she is motivated to seek

information about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to

others, and the higher the risk the higher the involvement. Types of risk:

 Personal risk

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 Social risk

 Economic risk

The four type of consumer buying behaviour are:

 Routine Response Programmed Behaviour -- buying low involvement

frequently purchased low cost items; need very little search and decision effort;

purchased almost automatically. Examples include soft drinks, snack foods, milk

etc.

 Limited Decision Making buying product occasionally --When you need to

obtain information about unfamiliar brand in a familiar product category, perhaps.

Requires a moderate amount of time for information gathering. Examples include

Clothes know product class but not the brand.

 Extensive Decision Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products. High degree of

economic/performance/psychological risk. Examples include cars, homes,

computers, and education. Spend a lot of time seeking information and deciding.

Information from the companies MM; friends and relatives, store personnel etc.

Go through all six stages of the buying process.

 Impulse buying, no conscious planning.

In order to produce successful ads, you must give people exactly what they want.

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This article will teach you why people buy the things they do so you can design

your ads to fulfill these needs.

MODEL OF BUYING BEHAVIOUR

Marketing
Stimuli Other Stimuli

Product
Price Economy
Place Political
Promotion Cultural
Technological

Buyer’s Buyer’s decision Buyer’s decision


Characteristic process
Cultural Problems recognition Product choice
Social Information search Brand choice
Personal Evaluation of Dealer choice
Psychological alternatives Purchase timings
Purchase decision Purchase amount
Post purchase decision

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STAGES OF CONSUMER BUYING PROCES

Problem
recognition

Information
search

Evaluation of
alternatives Purchase
decisions

Post purchase
behaviour

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CONSUMER BUYING BEHAVIOR

High involvement Low involvement

Significant Complex buying Variety-seeking


differences between behaviour buying behaviour
brands

Few differences
between brands
Dissonance-reducing Habitual buying
buying behaviour behaviour

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INTRODUCTION OF

THE PROBLEM

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Introduction of the problem

Its needs to be emphasized at the very outset that there is no unified, tested, and universally

established theory of buyer behaviour.what we have today are certain ideas on buyer behaviour

.some of these ideas have taken their cue from economics,others from psychology,and yet

others have drawn simultaneously from several of social sciences. Thus it is an attempt to study

the consumer behaviour with the helps of some marketing concept. Under the two month

summer training on the project,” customers profiling and purchase parameter” I have to analyse

all the factors which influences the purchase pattern of a customer and all the factors that are

responsible which forces a customer to switch over other company products.

In maruti szuki,I have to notice all the factors which attract the customers and also have a close

eye on the maketing strategy of the rival.though the span of two month is not a long time to

covers all the areas of Gorakhpur,however best effort have been made to make the report a

original one. Thus study has been undertaken to know what are purchase parameters of

customers or what are the main criteria, which a customer takes into considerations before

making any purchase decisions. No doubt automobiles industry has been increasing rapidly, but

the main fact is that how these industry are satisfying customers in case of personal mode of

transport,in these category maruti Suzuki is a leading name not nly in India but also all over

the world.

I face certain problems while completion of my project work which affected my report to a

extent but even then I made my full effort to prepare and present effective report.

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Problems are :

 The company limits projects area.

 Prickly heat season affected my working capacity, and restricted me to cover distant

area entirely.

 Few Customer did not exhibit any interest to fulfill the questionnaires and

interviews.

 It was not simply a questionnaires rather it also involves direct communication with

the Customer as interviewing them, which was tedious as well as time consuming.

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Scope And Importance

Of The Study

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Scope And Importance Of The Study
The project aims to get the student out of the classroom and into the real world of companies/

competitors, markets, managers and customers. The project aims to get the student out of the

passive mode of heavy lectures, hearing about other people last experience and into the active

mode of theories for themselves in solving real problems in real and live companies. Describing

the scope of particular project has different dimensions as it reveals different crisis situation and

its solution; it is both way beneficial for researcher and for the manufacturer, service provider or

the company.

Doing a good research involves collecting data from the genuine resource with proper

implication that leads to the company for future orientation. Experience is a child of Thought

and the Thought is a child of Action. An experience is a name every one gives to their mistakes.

For a researcher, it opens the way for walking into experiences. The ultimate goal of a research

is enormous with its true sense. Physically and practically, it shows the potential for the

company and researcher.

 Scope:

1. The scope of project was to collect data from the selected area of

GORAKHPUR and Analysis significance of collected data and the conclusion.

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2. The scope of the project help in analyzing the factors, which influence the buying

behaviour of consumers.

3. The scope is such that the study has been conducted by taking samples

from different areas, which depicts the overall picture.

4. The result obtained can give an overview regarding the choice and

Preference of consumers of MARUTI SUZUKI Vechiles.

5. The study can be helpful in taking decision so as to improve the quality

and service.

6. The study can be help full in portray the role played at each levels in

different areas.

7. The study can also provide the idea about the market strategy adopted by

company.

Importance of Study:

The main purpose of study is to know the purchase parameters of consumer regarding

MARUTI SUZUKI cars. The survey was conducted in GORAKHPUR area not all but only

some parts have included for survey. Due to shortage of time it was not possible to cover the

whole areas. The customers of these areas were targeted to get the full information about the

products. The interaction with the customers was through direct meeting, Phone calls were used

for appointments with customers. Thus the scope of the study was completed with the time and

resources available.

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OBJECTIVE OF

THE STUDY

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OBJECTIVE OF THE STUDY

The study has been undertaken with following objectives.

 To know the factors which influences a customers to make their purchase decision.

 To know the general impression of customers towards maruti-suzuki

 To know the advertising & promotional policy of company

 To examine the marketing strategy of maruti udyog limited.

 To examine the factors which forces a customer to purchase other company cars.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Marketing Research is the backbone of marketing. The objective of my research is to

CUSTOMER PROFILING & PURCHASE PARAMETERS.

The nature of my research is exploratory research. It’s goals to shed light on the real

nature of the problem and to suggest possible selection and its involves number of steps.

I. Define the Problem & Research Objective:

Management must define a problem in broader way. Because it is said that defining the

problem is half solved and the objective of my research is to study the consumer

perception about Maruti Suzuki in Indian consumer industry.

II. Develop the Research Plan

The second stage of marketing research calls for developing the most efficient plan for

gathering the needed information. Designing the research plan calls for decision on the

data sources, Research Approaches, Research Instrumental, Sampling Plans & Contact

Methods.

(a) Data Sources

I have collected my research data from secondary as well as primary sources from

random sampling survey.

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Primary Data

primary data are those data which are collected for the first time and are fresh and thus these

data happens to be original data in character.

Mostly in marketing research involves some primary data collection by the questionnaire

Sample Size : 100

Sample Area : Gorakhpur

Secondary Data

Secondary data are those which have already been collected by some one else and which have

already been passed through statistical process. Secondary data was collected by the books and

websites.

Magazines, Catalogue, Newspapers, Product Profile & Internet.

(b) Research approaches Primary data can be collected into five ways – observations,

focus groups, survey, behavioural data & experiments and here I have used survey

research.

TARGET MARKET

The target market of our study was mainly concentrated to the recent car buyer's and the survey

was conducted at the point of purchase.

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METHODOLOGY

The tool used for this research is questionnaire, administered and filled by interviewees. The

questionnaire was typed and presented to respondents in an arranged manner. In this process the

personal interview came very handy in explaining the respondents the exact list of questions or

if they face any problem while answering the questionnaire or in clarifying any confusion they

had. Personal interviews provided flexibility in the sense that the researcher was able to provide

further clarification or explanation whenever required.

Following facts were kept in mind while preparation the questionnaire:

1. The questionnaire is in an easy language

2. Maximum questions are of multiple choice questions and there can be more than one

answer for most of them

3. The comments and suggestions were open-ended questions so that the respondent could

elaborate upon his thoughts

4. The size of the questionnaire is not too long. This is to make the job feasible both for the

respondents and researcher

THE RESEARCH

Aim: The aim of the research was to study the factors, which a customer perceives in a car and

the sources as well as the knowledge, which the consumer employs in gathering information for

the product he is planning to purchase.

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Universe: The universe means the set of objects or population among which the research is to

be conducted. The universes of this task constitute all the people who have recently purchased

their cars.

Sampling Procedure: The sample design adopted was questioning buyers at the point of

purchase.

RESEARCH

Research in common parlance refers to a search for knowledge. One can also define research as

a scientific and systematic search for pertinent information on a specific topic. In fact research is

an art of scientific investigation. The advance learner’s dictionary of current English lays down

the meaning of research as “a careful investigation or inquiry especially through search for new

facts in any branch of knowledge.

OBJECTIVE OF RESEARCH---

The purpose of research is to discover answers to questions through the application of scientific

procedures. The main aim of research is to find out the truth which is hidden or which has not

been discovered as yet.

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The main objectives of research are as follows

 To gain familiarity with the phenomenon or to achieve new insight in to it.

 To portray accurately the characteristic of a particular individual, situation or a group.

 To determine the frequency with which something occurs or with which it is associated

with something else.

 To test a hypothesis of a casual relationship between variables.

RESEARCH PROCESS—

Research process consists of series of actions or steps necessary to effectively carry out research

and desired sequencing of these steps. And the process of research can be defined by following

steps-

 Formulating the research problem

 Extensive literature survey

 Development of working hypothesis

 Preparing the research design

 Determining sample design

 Collection of data

 Execution of project

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 Analysis of data

 Testing of hypothesis

 Interpretation

 Preparation of report

1. Formulating the research problem---

Research problem can be formulated on the basis of nature and variables. Initially the problem

may be stated in a broad way and than the ambiguities, if any, relating to the problem be

resolved. Then the feasibility of a particular solution has to be considered before a working

formulation of the problem can be setup. Essentially two steps are involved in formulating the

research problem, viz, understanding the problem thoroughly, and rephrasing the same in to

maniple terms from an analytical point of view.

The best way of understanding of problem is to discus it with once on colleagues or with

those having some expertise in matters. In the academic institution the researcher can seek the

help from a guide who is usually an experienced man and has several research problems in

mind. In private business units or in governmental organization, the problem is usually

earmarked by the administrative agencies.

2. Extensive literature survey----

Once the problem is formulated, it becomes compulsory for a research worker writing a

thesis for a Ph.D. degree to write a synopsis of the topic and submit it to the necessary

committee of the research board for approval. The researcher should undertake extensive

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literature survey connected with the problem. For this journals and published bibliographies are

the fist place to go to. A good library will be a great help to the researcher at this stage.

3. Development of working hypothesis—

After literature survey researcher should state in clear terms the working hypothesis or

hypothesis. As such the manner in which research hypothesis are developed is particularly

important since they provide the focal point for research. The development of working

hypothesis plays an important role; it should be very specific and limited to the piece of research

in hand because it has to be tested. It also indicates the type of data required and the type of

methods of data analysis to be used.

How does one go about developing working hypothesis? The answer is by using the

following approaches.

I. Discussion with colleagues and experts about the problem, its origin and objectives in

seeking a solution.

II. Examination of data and records, if available, concerning the problem for possible trends,

particularities and other clues.

III. Exploratory personal investigation which involves original field interview on a limited

scale with interested parties and individuals with a view to secure greater insight in to the

practical aspects of the problem.

4. Preparing the research design—

The research problem having been formulated in clear cut terms, the researcher will be

required to prepare a research design. The preparations of such a design facilitate to be as

efficient as possible yielding maximal information. The purpose of research may be grouped

in to four categories.
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I. Exploration

II. Description

III. Diagnosis

IV. Experimentation

The preparation of research design, appropriate for a particular research problem, involves

usually the consideration of the following

I. The means of obtaining the information.

II. The availability and skills of the researcher and his staff.

III. Explanation of the way in which selected means of obtaining information will be

organized and the reasoning leading to the selection.

IV. The time available for the research.

V. The cost factor relating to research, i.e. the finance available for the purpose.

5. Determining sample design—

For determination of sample design ,it can be presumed that in such an enquiry when all the

items are covered no element of chance is left and highest accuracy is obtained even the

slightest element of bias in such an enquiry will get larger and larger as the number of

observation increases. Hence, quite often be selecting only a few items from the universe for our

study purpose. The items so selected constitute what is technically called a sample.

The researchers must decide the way of selecting a sample or what is popularly known as

the sample design .a sample design is a definite plan determined before any data are actually

collected for obtaining a sample from a given population. Sample can be either probability

sample or non probability sample. Probability sample are those based on simple random

sampling , systematic sampling, cluster sampling where as non probability sampling are those

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based on convenience sampling, judgment sampling and quota sampling technique. A brief

mention of the important sample designs is as follows:

I. Deliberate sampling---

Deliberate sampling is also known as purposive or non-probability sampling. This

sampling method involves purposive or deliberate selection of particular units of the universe

for constituting a sample which represents the universe. When population or elements are

selected for inclusion in the sample based on the ease of access, it can be called convenience

sampling. If a researcher whishes to ensure data from, say, Gasoline, buyers, he may select a

fixed number of petrol stations and may conduct interview at these stations. This would be an

example of convenience sample of Gasoline buyers. On the other hand, in judgment sampling

the researcher’s judgment is used for selecting items which he considers as representative of the

population.

II. Simple random sampling—

This type of sampling is also known as chance sampling or probability sampling where

each and every item in the population has an equal chance of inclusion in the sample and each

one of the possible samples. For example, if we have to select sample of 300 items from a

universe of 15000 items, than we can put the names or numbers of all the 15000 items on slips

of paper and conduct a lottery.

III. Systematic sampling—

In some instances the most practical way of sampling is to select every 15 th name on a

list, every ten hose on one side of street and so on. Sampling of this type is known as systematic

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sampling. In such a design the selection process starts by picking some random point in the list

and then every nth element is selected until the desired number is secured.

IV. Stratified sampling—

If the population from which a sample is to be drown does not constitute a homogeneous group,

then stratified sampling is applied. If the item selected from each stratum is based on simple

random sampling the entire procedure, first stratification and then simple random sampling, is

known as stratified random sampling

V. Quota sampling—

In stratified sampling the cost of taking random sample from individual strata is often so

expansive that interviewers or simply given quota to filled from different strata. Quota samples

generally happen to be judgment samples rather than random samples.

VI. Cluster sampling and area sampling—

Cluster sampling involves grouping the population and then selecting the groups or the clusters

rather than individual elements for inclusion in the sample, suppose some departmental stores

wishes to sample its credit card holders. It has a suit its cards to 15000 customers. The sample

size is to be kept say 450. For cluster sampling this list of 15000 holders could be formed in to

100 clusters of 150 card holders each.

VII. Multistage sampling—

This is further development of idea of cluster sampling. Under multi stage sampling the

first stage may be to select large primary sampling units such as states, then districts, then towns

and finally certain families within towns.

42
VIII. Sequential sampling—

This is some what a complex sample design where the ultimate size of the sample is not fixed in

advance but is determined according to mathematical decisions on the basis of information

yielded as survey progress. This design is usually adopted under acceptance sampling plan in

the context of statistical quality control.

6) Collecting of the data—

Once the sample design is decided then it becomes necessary to collect data that are appropriate.

There are several ways of collecting the appropriate data which is differ considerably in context

of money cost, time and other resources at the disposal of the researcher.

Primary data can be collected either through experiment or survey. If the researcher

conducts and experiments, he observes some qualitative measurements, or the data, with the

help of which he examines the truth contain in the hypothesis. But in the case of survey, data can

be collected by anyone or more of the following ways.

By observation: - this method implies the collection of information by way of

investigators own observation, relates to what is currently happening and is not complicated by

either the past behavior or future intentions or attitudes of respondents.

Through personal interview: - This method of collecting data is usually carried out in a

structured way where output depends upon the ability of the interviewers to a large extent.

43
Through telephone interviews: - This method of collecting information involves

contacting the respondent on telephone itself, when the survey has to be accomplished in a very

limited time.

By mailing of questionnaires: - Questionnaires are mailed to the respondents with a

request to return after completing the same. It is the most extensively used method in various

economic and business surveys. Before applying the method, usually a pilot study for testing the

questionnaires is conducted wh9ich reveals the weaknesses, if any, of the questionnaires.

Through Schedules: - Under this method the enumerators are appointed and given

training. These enumerators go to respondents with these schedules. Data are collected by filling

up the schedules by enumerators on the basis of replies given by respondents. Some occasional

field checks on the work of the enumerators may ensure social work.

7. Execution of the project:-

Execution of the project is a very important step in the research process. If the execution of the

project proceeds on correct line, the data to be collected would be adequate and dependable. The

researcher should see that the project executed in a systematic manner and in time. If the survey

is to be conducted by means of structured questionnaires, data can be readily machine-

processed. In such a situation, questions as well as possible answers may be coded. The training

may be given with the help of instruction manuals which explain clearly the job of the

interviewers at each step. A careful watch should be kept for unanticipated factors in order to

keep the survey as much realistic as possible.

If some of the respondents do not co-operate, some suitable method should be design to

tackle this problem. One method of dealing with a non response problem is to make a list of the

44
non respondents and take a small sub sample of them, and then with the help of experts vigorous

efforts can be made for securing response.

8. Analysis of data:-

After the data has been collected, the researcher turns to the task of analyzing them. The

analysis of data requires a no. of closely related operation such as establishment of categories,

the application of these categories of raw data through coding, tabulation and then drawing

statistical inferences. Thus, researcher should classify the raw data in to some purposeful and

usable categories.

Coding operation is usually done at this stage through which the categories of data are

transformed in to symbols that may be tabulated and counted.

Editing is the procedure that improves the quality of the data for coding. Whit coding the

stage is ready for tabulation.

Tabulation is a part of the technical procedure where in the classified data are put in the

form of tables.

Analysis work after tabulation is generally based on the computation of various percentage

coefficients etc. by applying various well defined statistical formulae. In the process of

analysis, relationship of differences supporting or conflicting with original or new

hypothesis should be subjected to taste of significance to determine with what validity data

can be said to indicate any conclusion(s).

9. Hypothesis testing:-

45
After analyzing the data as stated above the researcher is in a position to test the hypothesis,

if any he had formulated earlier. Do the facts support the hypothesis or they happen to be

contrary? This is the usual question which should be answered while testing hypothesis. Various

tests such as Chi-square test, t-test, and f-test have been developed for the purpose. The

hypothesis may be tested by using one or more of such tests.

10.Generalizations and interpretation: -

If a hypothesis is tested and upheld several times, it may be possible for the researcher to

arrive at generalization. i.e. to build a theory. As a matter of fact the real value of research

lies in the ability to arrive at certain generalizations. If the researcher had no hypothesis to

start with he might seek to explain his findings on the basis of some theory. It is known as

interpretation.

11. Preparation of the report or thesis: -

Finally the researcher has to prepare the report of what has been done by him. Writing of

report must be done with great care keeping in view the following.

1. The layout of report should be as follows—(1) the preliminary pages; (2) the main text ;(

3) the end matter.

In its preliminary pages the report should carry time and date followed by the

acknowledgements and foreward. Then there should be a table of contents followed by a list of

tables and list of graphs and charts, if any, given in the report.

The main text of the report should have the following parts.

46
(a) Introduction: - It should contain a clear statement of the objective of the research

and an explanation of the methodology adopted in accomplishing the research.

The scope of the study along with various limitations should as well be stated in

this part.

(b) Summary of findings: After introduction there would appear a statement of

finding and recommendations in non-technical language. It the findings are

extensive they can be summarized.

(c) Main report: The main body of the report should be presented in logical

sequence and broken-down into readily identifiable sections.

(d) Conclusion: Toward the end of the main text, researcher should again put down

the results of his research clearly and precisely. In fact it is the final summing up.

At the end of the report, appendices should be enlisted in respect of all technical data.

Bibliography, i.e. list of books, journals reports etc., consulted, should also be given in

the end. Index should also be given specially in a published research report.

2. Report should be written in a concise and objective style in simple language avoiding

vague expressions such as ‘it seems’, ‘there may be’, and the like.

3. Charts and illustrations in the main report should be used only if they present the more

information more clearly and forcibly.

4. Calculated ‘confidence limits’ much be mentioned and the various constraints

experienced in conducting research operations may as well be stated.

47
INTRODUCTION

OF THE ORGANISATION

48
COMPANY PROFILE

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to

meet the growing demand of a personal mode of transport caused by the lack of an efficient

public transport system. Suzuki Motor Company was chosen from seven prospective partners

worldwide. This was not only due to their undisputed leadership in small cars but also to their

commitment to actively bring to MUL contemporary technology and Japanese management

practices (which had catapulted Japan over USA to the status of the top auto manufacturing

country in the world). A license and a Joint Venture agreement were signed between Govt of

India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The

objectives of MUL then were: Modernization of the Indian Automobile Industry, Production of

fuel-efficient vehicles to conserve scarce resources, Production of large number of motor

vehicles which was necessary for economic growth.

The Revolution

Maruti created history by going into production in a record 13 months. On 14 December 1983,

the then Prime Minister of India, Mrs Indira Gandhi, handed over the keys of the first car to Mr.

Harpal Singh of Delhi. Volume targets were routinely exceeded, and in March 1994, it became

the first Indian company to produce over one million vehicles, a landmark yet to be achieved by

any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside

49
Japan and Korea, having produced over 3.5 million vehicles by December 2001. Maruti is one

of the most successful automobile joint ventures, and has made profits every year since

inception till 2000-01. In 2000-01, although we generated operating profits on an income of Rs

92.5 billion, high depreciation on new model launches resulted in a book loss. We are again on

track for profits in 2001-02, with a profit of Rs 300 million in the first half. In this period, sales

were increased by 5.3%, against an industrv decline of 6.1 %. We revolutionized the wav

Indians looked at cars. "No other car company so completely dominates its home market" - (The

Economist). Despite there being 11 companies now in the passenger car market, Maruti holds

about 60 % of the total market share. MUL is also the first and only car company in the world to

lead its home market in terms of both market share and in the JD Power Customer Satisfaction

study (JD Power Asia Pacific 2000 India Customer Satisfaction studies).

Transfer of Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer

of contemporary technology from our partner Suzuki is a smooth process. Great stress is laid on

training and motivating the people who maintain the equipment, since the best equipment alone

cannot guarantee high quality and productivity. From the beginning it was a conscious decision

to send people to Suzuki Motor Corporation for on-the-job training for line technicians,

supervisors and engineers. This helps them to imbibe the culture in a way that merely

transferring technology through documents can never replicate. At present 20 % of our

workforce is trained under this program.

Our Ethos

Our employees are our greatest strength and asset. It is this underlying philosophy that has

50
molded our workforce into a team with common goals and objectives. Our Employee-

Management relationship is therefore characterized by: Participative Management, Team work,

Kaizen, Communication, Information sharing, and an open office culture for easy accessibility

to implement this philosophy. We have taken several measures like a flat organizational

structure i.e. there are only three levels of responsibilities ranging from the Board Of Directors,

Division Heads to Department Heads. Other visible features of this philosophy are common

uniforms (at all levels), and a common canteen for all. This structure ensures better

communication and speedy decision making processes. It also creates an environment that

builds trust, transparency and a sense of belonging amongst employees.

Maruti eyes Global Pie, to be R&D Hub for Suzuki

New Delhi: With the enhanced backing of Suzuki, Maruti Udyog is gearing up to become a

global scale player and will be a R&D centre for Suzuki cars outside Japan. Becoming a global

player is the resurgent theme of Maruti's future strategy in the post-privatization phase as listed

in the IPO offer document filed with Sebi.

In terms of manufacturing processes or quality systems or even R&D, the flavor is global.

Clearly, the company wants to build on its leadership in the domestic market and make a place

for itself in the global arena.

After sharp gains in productivity and quality in the past two years, the company wants to further

improve its operating efficiencies by cutting costs by 30% and enhancing productivity by 50%

and align itself with Suzuki's Kosai plant in Japan by year '04-05. On the quality front, while

Maruti was amongst the first automobile manufacturers in the world to receive the ISO

901:2000 certification, it wants to go further and adopt Suzuki's global customer audit index.

But the biggest shift is in the area of R&D. Although Maruti has gained from its expertise in

localization of components, it now wants to take R&D to another plane where it can become
51
Suzuki's centre for cars in Asia, outside Japan.

In fact, it has recently acquired the capability to conduct minor and major face lifts to its

products and upgrade products in terms of technology or features. To reduce initial investment

on models, Maruti may outsource dye from other than Japan, such as Taiwan, which are often

less expensive.

Maruti's initiatives are based also on its recent success in the export market. It sold nearly

24,000 units of the Alto in Europe last fiscal and its overall exports were up by a whopping

163% over the previous year.

Its global ambitions are also now nurtured by the backing of Suzuki Motor

Corporation. The prospectus makes this point by Sayin2 that as a subsidiary of Suzuki, Maruti

has "access to globally respected technology in the small car segment. "

Even while maintaining the overall global theme, Maruti wants to leverage its local advantage.

Its promise of providing customers a "wide range of Maruti branded services at different stages

of ownership" is at par with other global manufacturers. It lays great emphasis on these Maruti

branded services like insurance, finance and pre-owned cars, and believes that this "360 degree

customer experience" will secure repeat purchase and increase revenue of the sales network. In

supply chain initiatives as well, Maruti's reference is to the world wide purchase system fostered

by General Motors. Through this, it could make a select few of its vendors the sole suppliers

for Suzuki products in several countries.

Our focus will continue to be the small car: Jagdish Khattar

From a loss of Rs 269 crore in 2000-01, after being written off by many analysts, Maruti has

bounced back: its 800 model is as popular as ever, new launches are picking up. Jagdish Khattar,

managing director Maruti, spoke to Vinay Pandey on Maruti's transformation. Excerpts: Maruti's

52
turn around: To understand Maruti today, you need to go back to 1993 when liberalization took

place and foreign manufacturers were allowed to come.

Maruti should have taken proactive measures then. But between 1995 and 1998 our

shareholders (the government and Suzuki) had differences. Decisions that should have been

taken in the mid-90s to prepare for competition got delayed.

In June 1998, we decided to increase our capacity by one lakh vehicles and to introduce four or

five new models, which arrived a year and a half after our competitors', who gained from this.

Two, investments that should have been done over five years were done in 24 months in a hurry

to launch new models. So, localization was low, the yen was strong, prices were market-

determined, depreciation increased, and we ran into losses. That's when you got the feeling

Maruti was in trouble.

But internally, it was a very good wake up call, which did a lot of good to us. We brought out

models, localized faster, cut costs massively.

So even when everyone thought we were in trouble, we were confident that we'd bounce back.

Our market share went down to 61%, but we've now stabilized around 58-59%. We took off a

bit late, had lot of catching up to do, which we've done.

Role of M800: People say 800 is old and so on. But go on the road and see someone on a two-

wheeler, wife and two children, in rain, in winter, in summer. Is he going to be bothered about

53
power windows and steering, or does he wish to be in a car and be comfortable? Today we're

selling air-conditioned 800s at Rs 2.2 lakh. Many people buying AC 800s may not have an AC

at home. So, look at the tremendous role it is playing.

India's car penetration is six per 1,000; Pakistan and Sri Lanka are at 12. Thailand is at 200,

Japan and America are over 500-600. What I'm saying is that there's still a huge gap. If our

motorization has to increase, we can't do that by selling expensive cars. We need to make cars

more affordable. Therefore, a narrower gap between two-wheelers and entry-level cars is what's

required. It should also have good performance, no compromise on quality, fuel-efficient and

low on maintenance. The 800 fits the bill.

The Alto can't replace the 800 today because the volume and price at which 800 is selling, we

can't sell Alto at that. Yes, once we get costs under control, we'll position the Alto between

segments A and B. We'd like to have a car from the entry level to Rs 3-3.5 lakh at every Rs

20,000- Rs 25,000 difference.

Success of new models: Historically, Maruti's new models never start with a bang. I joined

Maruti in 1993 when Zen was introduced and we found it hard to sell initially. We had to reduce

our production plan drastically, but then after a year or two it caught on. And look what it is

today.

So, initially there's skepticism, then some people buy and share their experience. About 60-70%

of our sales take place by referral. I'm not saying marketing is unimportant, but there's nothing

more effective than a present owner giving a good chit to prospective buyer. We're seeing the

same effect with Wagon R, which is doing really well now.

54
Versa is slightly different. When we decided on Versa, in 1998, the government had announced

that in April 2002 the administered price mechanism (APM) for oil would be abolished. The gap

between petrol and diesel prices would have then been negligible. Versa came, but APM

remained.

Now there is no hell of a chance of anyone buying a petrol version when a diesel alternative is

available for the same purpose. For the Versa we've carried out a lot of localization, the pricing

has been reworked and things are looking up. But some amount of disadvantage between petrol

and diesel will remain.

Those who bought the Baleno are very happy. Also, view it from our perspective. We launched

five models in a space of 12 months. We had to prioritize. Because of low localization, we were

losing money on Baleno.

So it made no sense to just gain numbers. Now some localization has taken place and the

product is getting its due. The Vitara is different, it's not manufactured here. We'll import what is

required.

Anyway, our core competence and focus would be the small car because that is what the county

needs and that is where the volumes are. Let us look at it in another way. There are only four

major players in the small car segment - Telco, Fiat, Hyundai and Maruti and 80 % of the

market is the small car segment. In the remaining market, there are a dozen players. It is a very

lopsided market structure today.

55
PRODUCT PROFILE

MARUTI 800

Economy

Great technology enables the Maruti 800 to deliver great fuel efficiency. The Maruti 800

shas topped every fuel efficiency survey that has been conducted in the past. The Maruti

800 has the lowest fuel cost per kilometer of any petrol car in the country with a cost of

Rs 1.94 per kilometer.This confirms the position of the Maruti 800 as the most fuel

efficient petrol car in the country.

56
MARUTI OMNI

For the family

This car position itself in the mind of consumer as afamily car. The punch line of the car

is “toal solution of the entire family”

Features are:

• MPFI Engine

The multi-point fuel injected engine helps to lower emissions and achieve greater fuel

efficiency. With 37 bhp @ 5000 rpm, you have greater pulling power. A torque of 6.32

kgm @ 3000 rpm ensures better climbing power and lesser gear changes. In other words,

less fatigue.

57
Space

Stretch out. Open up. Enjoy the luxury of space inside the Omni. The ample headroom

and legroom make long rides comfortable and enjoyable. Reclining front seats with

adjustable head restraints let you relax completely. With its ample luggage space, the

Omni is equipped for anything. Pack in your family, your group of friends, your luggage,

your golfing gear, and your picnic hamper all can fit in snugly.

58
MARUTI ALTO

Features are:

MPFI Engine

Plenty of power, great mileage and low emission make the Alto the perfect choice for

Indian roads. The fuel efficiency of the Alto is better than any other vehicles in its class.

The 16x4 hypothec MPFI engine delivers unadulterated power, begging for fun. The 4-

valves per cylinder MPFI engine mated with a 5-speed gearshift and a 16-bit on-board

computer allows the Alto to effectively combine power with optimal fuel efficiency

59
Reliability

Here's another first by ALTO, which has been setting records since its introduction

in India!

Alto becomes the first Indian car to undergo a 24 hours endurance test and sets 13

national records in the process !!! The test was conducted on 2nd & 3rd August on the

high-speed track of the National Centre for Automotive Testing (NCAT) at the Vehicle

Research and Development Establishment (VRDE), Ahmednagar.

60
WAGON R

Comforts

The smarter race knows exactly how to take the stress out of driving and push driving

comfort to the max. Full flat folding front seats and reclining rear seats allow you to

stretch yourself during long drives. This ensures that you travel in maximum comfort as

compared to cramped seating arrangements in other cars.

The McPherson strut suspension in the front and coil springs at the rear ensures a smooth

comfortable drive. It's not just comfort; Wagon R also has a 1061cc MPFI low friction

engine

61
Space

Nothing cramps the style of the smarter race. That’s why it prefers the Wagon R. Tall

body, high seats and wide opening doors make it easy to get in and get out. Seven cm

taller than the Santro, the Wagon R offers more headroom, amazing spaciousness and

a commanding driving position. The split rear seating arrangement along with fully

reclining front and the reclining rear seats gives a first class airline seating comfort.

The Wagon R comes with an extra large boot space, which is possible because of its

unique design that maximizes space on a compact platform. Caution, safety and

protection are integral to a smarter mindset. And the Wagon R is designed to satisfy

every concern. Just check out the battery of safety features:

Dual side-impact beams in the front and rear doors protect you from lateral collisions.

A long crumple zone shields you in the unlikely event of a frontal collision.

A Roll Control device in the front suspension imparts greater stability and helps the

Wagon R to negotiate sharp curves at high speeds. The 8 inch booster-assisted brakes

equip you well to handle any emergency High seating position gives you a bigger

field of view, allowing you to better anticipate traffic problems before they occur.

62
MARUTI VERSA

• One great drive. Twice the safety

The Versa is one of the safest cars on the road. It has safety features to guard your

loved ones from road disasters. Side impact absorbing beams in all 4 doors protect the

passengers from side crashes. Front impact beams between the front pillars and the

collapsible steering column shield you from head on collisions. A steel pipe frame in

the rear seat safeguards your family from rear impacts.

ELR seat belts allow free movement, but hold you securely during sudden stoppages.

Height adjustable head restraints, brake boosters and a collapsible steering column

further ensure your safety. When you step out of the house and into your Versa, rest

assured

63
Sink in. Stretch out. Lie back. Indulge

Versa's the ideal car for long journeys. Now stretch your legs on those long rides. All

seats* have recliners. In SDX, the 2nd row bucket seats can be slid forward or

backward independently to suit the convenience of the passengers.

The high seat position makes it easy to get in and out and gives superior road

visibility. The front row seats have thick insulation between seat and the engine. Two

layers of PUF and aluminum sheets act as a buffer, protecting the driver from engine

heat. The rear seat also has a steel pipe frame for protection in the event of a rear

impact.

* Except for the folding seat in 2nd row (DX, DX2) and last row seats.

64
MARUTI GYPSY

Gypsy Advantage

Hills

Higher ground clearance of 210 mm to ensure better off-road handling.

Diaphragm Spring Clutch designed to with stand higher rotational speeds requiring

less release load ,thereby reducing the wear of parts

Snow

65
The Engine that’s high on thermal conductivity, and heats up quickly even under

extremely cold conditions. Thus, there are no starting problems even in the midst of

snow.

1300 cc petrol engine — lighter than a diesel engine, resulting in a higher power to

weight ratio. This ensures better control, more power and greater responsiveness.

Desert

The Engine avoids overheating because its high thermal conductivity enables it to

give off heat much faster

Streams

Maximum power of 80 bhp @ 6000 rpm makes for easier crossings.

4-Wheel drive for better control and more power at the wheel.

A higher power to weight ratio of 0.0812 ensures faster acceleration through

streams and muddy terrain.

DIRT TRACKS

Dirt tracks

Steering Damper ensures that shocks encountered from bumps and potholes are not
passed on to the steering wheel. Thus, any loss of control owing to unexpected obstacles

is avoided.

66
The Gypsy is a lighter vehicle weighing in at 1020 kg (hard top) and 985 kg (soft

top). This is a major advantage on sandy or muddy tracts — a heavier vehicle will get

stuck but the Gypsy keeps

67
MARUTI ESTEEM

Safety

8 inch vacuum booster assisted brakes ensure precise, stable and safe stopping.

Collapsible steering column protects the driver in case of frontal collision.

Rugged monocoque chassis and crumple zones distribute collision impact.

Side impact beams on all four doors provide safety during side impacts

Comfort

A refreshed cabin, ergonomically designed low fatigue seats, a super cool AC and

tubeless tyres promise to pamper you with an unexpected level of comfort and driving

pleasure. Supercool AC for a comfortable drive

68
Precise power steering for total control

McPherson strut suspension for a smoother ride

Tubeless tyres for superior road grip

New white lit dials for easy viewing

Low fatigue seats

Performance

At the heart of this beauty lies a state-of-the-art Japanese engine that will give you the

power you've always craved for and performance that has already won accolades

MPFI, 16 valve, 16-bit, 1300 cc All Aluminum Engine (ACE)

Acceleration of 0-100 kmph in 11.49 secs* Highest power-to-weight ratio of 99 bhp

per ton

85 bhp @ 6000 rpm (Petrol)

Higher torque of 106 Nm @ 3000 rpm for quick pickup (Petrol)

69
GRAND VITARA

Comforts

The smarter race knows exactly how to take the stress out of driving and push driving

comfort to the max. Full flat folding front seats and reclining rear seats allow you to

stretch yourself during long drives. This ensures that you travel in maximum comfort as

compared to cramped seating arrangements in other cars.

The McPherson strut suspension in the front and coil springs at the rear ensures a smooth

comfortable drive. It's not just comfort; Wagon R also has a 1061cc MPFI low friction

engine

70
DATA PRESENTATION

&

DATA ANALYSIS

71
DATA PRESENTATION

Data Presentation has been divided into 2 parts

1. A detailed analysis has been done for all the segments in Maruti.

2. Santro, which is the major competitor of Maruti, has been analyzed in a simile

way so as to determine the factors that are taken into consideration by the

customer while comparing the car.

Model wise division of the cars purchased

Maruti
Cars purchased Omni Zen Alto WagonR Versa Esteem Baleno
800

33 6 20 9 30 2 13 1

72
CARS PURCHASED

35

30

25

20

15

10

0
lt o
00

sa

m
n
ni
ed

o
Ze

en
on

ee
m

A
i8

er
as

al
ut

ag

st
V
h

B
ar

E
rc

W
M
pu
s
ar
C

Interpretation:

The above figure shows that the 800 model of Maruti still commands a good share in the

market, followed by WagonR and hot selling Zen. Maruti 800 is the undisputed king of

the roads.

Alto is an upcoming model and has the largest share in the export category, and is

marketed in Europe. V _rsa's sale has got to pick up because costumers have an unclear

picture in their mind regarding the car being high priced which is actually a myth.

73
Q.What was the purchase mode of Vehicle?

Mode of
Cash ICIC Stan chart HDFC CITIBANK ABN-AMRO
Purchase
16 36 9 12 8 33

MODE OF PURCHASE

40

35

30

25

20

15

10

0
Mode of
Cash ICIC Stan chart HDFC CITIBANK ABN-AMRO
Purchase

Series1 16 36 9 12 8 33

Interpretation:

As can be seen in the figure above the availability of easy loan has attracted the

consumers to much so that the out of the cars purchased only 13.5 % of the vehicles are

paid for in cash. With the mushrooming of finance companies the rate of interests has

been continuously reducing.

The two rivals in car financing are ICICI and ABN-AMRO bank with ICICI leading the

race due of more and wider presence.

Easy availability of finance have up surged the demand for higher segment cars with

74
more and more people who have the capability of paying cash opting for finance due to

hassle free approvals and lowest interest rates.

Q.Which brands are mostly preferred by customers?

The brand-recalling test showing the brand that has the picture in consumer's mind

Brand Recalling Maruti Hyundai Tata Honda Fiat Ford


97 66 40 20 19 12

BRAND RECALLED

120

100

80

60

40

20

0
Brand Maruti Hyundai Tata Honda Fiat Ford
Recalling

As seen in the figure above somewhere down the line people do recall Maruti when they

are asked to name a brand that comes to their mind at the first instance. Followed by

Maruti is a close competitor Santro which relies on aggressive marketing tools, followed

by the good old Tata which their flagship Indica.

It can be seen that the more the people recall the brand the more likely are the chances of

good sales turnover.


75
Q.Which advertisements of MARUTI SUZUKI Strike mostly?

The advertisements that strike

Maruti
Advertisement WagonR Versa Alto Maruti800 service Zen Santro
21 14 18 17 19 8 74

ADVERTISEMENT RECALLED

80

70

60

50

40

30

20

10

0
WagonR Versa Alto Maruti800 Maruti service Zen Santro

Interpretation:

As said earlier in the above brand recalling analysis Santro commands a higher recalling

power when it comes to Media advertisements because of its high advertisement budget.

Also the hot favorite in Maruti ads is the Bachhan father and son ad with the highest

recalling in Maruti brand of cars.

76
Q.Which Sports Channel is mostly watched by customer?

SPORTS CHANNEL STAR Zee SONY


54 24 15

SPORTS CHANNEL MOSTLY


ACSSESED

60

50

40

30 Series1

20

10

0
STAR Zee SONY

Q.Which Entertainment Channel is mostly watched by Customers?

Entertainment STAR Zee SONY


54 24 15

77
ENTERTAINMENT CHANNEL MOSTLY
WATCHED

60
50
40
30
20
10
0
STAR Zee SONY

Q.Which Newspaper is mostly read by Customers?

Newspapers read TOI HT ET DAINIK NAV TIMES


48 38 11 7 10

78
NEWSPRINT MOSTLY READ

60
50
40
30
20
10
0
TOI HT ET DAINIK NAV
TIMES

Q.Which Magazines is mostly read by Customers?

Auto Business
India
Magazines read India Outlook Overdrive world
Today
14 9 4 8 34

79
MAGAZINE MOSTLY READ

40
30
20
10
0
Auto India Outlook Overdrive Business India
world Today

Interpretation:

Summarizing the above figures we can say that the people watch Star Sports the most

followed by ESPN and Ten sports therefore we can say that it would be better for Maruti

to advertise on Star rather than Ten sports. But one has to look at the target audience and

then make a feasible decision; it is possible that a media is good for a certain class of

target audience. For e.g. the Grand Vitara which is the latest offering from Maruti has to

be marketed through a totally different channel due to a different class of society being

targeted for the same.

Similarly most people prefer watching Aaj tak to NDTV therefore it would be wise to

choose this channel amongst the news channels for reaching the audience. Likewise Star

has a much wider coverage than other entertainment channels followed by Zee and Sony

India.

Print media is perhaps the most effective and the most widely circulated media and a

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good medium for advertising but one has to be sure about its target audience and then

resort to division of the same into different segments. Such as people reading English

newsprints or Hindi or for that matter any other language but it is important that to make

the ad effective it should be positioned right. TOI is the most widely circulated as well as

read newspaper in and around Delhi, followed by Hindustan times.

Similarly the magazine India Today is quite a source of good information for the elite

class.

There is a saying that "Advertising is a social waste" but it is advertising that makes the

customer aware and the right kind of expenditure is definitely a necessity in today's

competitive environment.

Now the most important question that comes to the consumers mind when he plans to

purchase a car of at the time of purchasing the car. Whether he wants economy or style,

discount or resale, features or services, of all in the same package.

Purchase Parameters

We asked the customers to rank the factor, which lured him to purchase the car, the

following parameters were taken:


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1. Price

2. Discount

3. Mileage

4. Resale

5. Looks

6. After sale service

7. References

8. Advertising Features

9. Brand image Repeat purchase

The interviewees were asked to rank the top 6 factors, which helped him to choose the

brand he has chosen.

For this we have done a model-based study wherein we have taken those models, which

have a sample size of 10 and above.

For the ease of understanding we took ranking in percentage form, also because of

unequal sample sizes it became necessary to take figures in percentages so that the study

is not biased.

STEPS of computation of ranks:

1. Calculating how many people gave what ranks to the factors, which were taken under

consideration, and summing them up.

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Maruti800 sample size=33

Resale After Adver- Brand Repeat


Ranks Price Discount Mileage value Looks sales Reference tising Features Image purchase
1 21 1 2 2 1 0 0 0 0 5 1
2 3 4 11 5 3 3 2 0 1 1 0
3 3 1 7 5 8 5 1 1 1 1 0
4 0 0 2 3 8 10 0 1 1 8 0
5 0 2 3 4 3 3 4 1 4 6 3
6 0 3 2 2 2 4 4 2 8 5 1

In the figure above 21 people gave price as its first preference followed by 3 people each

who gave 2nd and 3rd rank to price. Similarly for mileage 2 people had ranked it 1st and

so on

2. Percentage representation of the same out of the sample size of 33 customers.

Resale After Adver- Brand Repeat


Ranks Price Discount Mileage Value Looks sales Reference tising Features Image purchase
1 0.64 0.03 0.06 0.06 0.03 0 0 0 0 0.15 0.03
0
2 0.09 0.12 0.33 0.15 0.09 0.09 0.06 0 0.03 0.03
-
3 0.09 0.03 0.21 0.15 0.24 0.15 0.03 0.03 0.03 0.03 0
4 0 0 0.06 0.09 0.24 0.3 0 0.03 0.03 0.24 0
5 0 0.06 0.09 0.12 0.09 0.09 0.12 0.03 0.12 0.18 0.09
6 0 0.09 0.06 0.06 0.06 0.12 0.12 0.06 0.24 0.15 0.03

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3. Taking weights for the ranks so that all the figures come on a common platform

Ranks Weights
1 30%
2 25%
. 3 20%
4 12.50%
5 7.50%
6 5%

Rank 1st have been given a 30 percentage weigh because this is driving factor i.e. it is the

first and foremost thing that comes to a consumers mind when he goes for a purchase,

likewise rank 6th which is somewhere in the mind of customers but doesn't make an

impact on the purchase decision.

4. Multiplying the percentages found in step 2 with their respective ranks to get a

cumulative score.

Resale After Adver- Brand Repeat


Discoun Mileag
Ranks Price value Looks sales Reference tising Features Image purchase
t e
1 0.192 0.009 0.018 0.018 0.009 0 0 0 0 0.045 0.009
2 0.023 0.03 0.083 0.038 0.023 0.023 0.015 0 0.008 0.008 0
3 0.018 0.006 0.042 0.03 0.048 0.03 0.006 0.006 0.006 0.006 0
4 0 0 0.008 0.011 0.03 0.038 0 0.004 0.004 0.03 0
5 0 0.005 0.007 0.009 0.007 0.007 0.009 0.002 0.009 0.014 0.007
6 0 0.005 0.003 0.003 0.003 0.006 0.006 0.003 0.012 0.008 0.001
TOTAL 0.233 0.055 0.161 0.109 0.12 0.104 0.036 0.015 0.039 0.111 0.017
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5. Graphical representation of the total scores

RANKING ANALYSIS MARUTI 800

0.25

0.2

0.15

0.1

0.05

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ad

The above figure clearly depicts that the customer base of Maruti 800 is much more price

cautious and mileage is the next best thing that they want. But they do give importance to

the looks, after sales service and resale value of the car. These people are also inclined

towards the brand image of Maruti 800.

That is probably the most important reason that 800 is called the bread and butter

car and still the highest selling car in its segment. Similarly we can do it for the

other segment:

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86
WagonR

Resale After Brand Repeat


Price Discount Mileage value Looks sales Reference Advertising Features Image purchase
0.122 0.035 0.185 0.109 0.144 0.129 0.04 0.004 0.134 0.125 0.05

RANKING ANALYSIS WAGON R

0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0

As seen in the figure above this segment of buyer are much more conscious about

mileage and looks of the car, they seem to like the TALLboy look of the Wagon R.

Next in line comes the after sales service, features and brand image. Maruti which has the

widest network of sales and service enjoys the trust of people and with a car with a true

international look i.e. the WagonR consumer are sure to make the neighbors envy.

It can be seen that the price has taken the back seat in this segment because the people

to whom this car cater are mostly second time buyers.

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This category witnesses the second most repeat purchases due to the trust that these

consumers have in Maruti.

Zen

Resale After Adver Brand Repeat


Price Discount Mileage value Looks Sales Reference tising Features Image purchase
0.157 0.021 0.141 0.113 0.312 0.101 0.04 0.019 0.124 0.089 0.062

RANKING ANALYSIS ZEN

0.35

0.3

0.25

0.2

0.15

0.1

0.05

Interpretation :

Zen is ultimately a world-class car with international looks. It has been rated next to

Mercedes for the most image conscious people, and probably that's the reason why

consumers have given it so high on looks.

Zen which the one of the most reliable car in its class has a good features list and to top

up it has an excellent after sales with more than 90% indegenisation.

The quote "ADD ZEN TO YOUR LIFE" is truly a world class similar to the car.

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Esteem

Resale After Adver Brand Repeat


Price Discount Mileage Value Looks Sales Reference Tising Features Image Purchase
0.165 0 0.185 0.1205 0.1035 0.16 0 0.00525 0.085 0.041 0.107

RANKING ANALYSIS ESTEEM

0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0

Esteem is one of the best cars in its segment with a very good value for money and the

highest repeat purchases; this shows the worth of the car. With the introduction of a mpi

engine it has become an amazing car to drive with a good fuel economy as seen in the

figure above this is one of the top most reasons that the customers look in this car. It is

priced very wen as compared to its rivals giving it an upper edge also it is the car with the

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2ood resale value and engine life.

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Santro

Resale After Adver Brand Repeat


Price Discount Mileage value Looks sales Reference tising Features Image purchase
0.085 0.116 0.134 0.097 0.131 0.106 0.0447 0.031 0.093 0.107 0.024

RANKING ANALYSISSANTRO

0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0

Now comes the rival and the closest competitor of Maruti Le. Santro. As seen in the

figure it is clear that the customers opt for the Xing thing because of its mileage which

they perceives is more in this car, looks does leave an impression this can be seen from

the ranking above.

Also it is clear from the above graph that Santro is offering its customers lots of discount,

discounts that are the favorite of the Indian market. Xing is more popular amongst kids.

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FINDINGS OF THE STUDY

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Findings

The company is making proper balance between all the marketing mix factors viz

product,price,promotion and place unto some extent. Hence the marketing mix decision

and strategies of the company should be made according to customer expectations, as the

modern concept of marketing is customer oriented. The firm should modify its products

quality and placement procedure to get optimum customer satisfaction. The company

orientation towards the market place and target consumers is on the right way considering

the mileage, which is emerging as a prime factor to compete the market. This concept

emphasis on promotion efficiency but considering only Mileage to achieve consumer

satisfaction is not sufficient. So the company should consider the external quality of the

product. The company should provide proper supply of the product to their authorized

dealers so they may fulfill the requirement of their sub-dealers located in small centers.

The company should make SWOT analysis time to time to know about it

strength,weakness,and to precise the opportunities and threats in the market so that

company can equip itself to tackle and type of challenges .On the basis of analysis we

found that some consumers want some change in product. These changes are like having

spacious seats, good looking & comfortable as it is found in case of Santro. The research

and development department of company is good but not up to mark it should be

according to customer’s demand. According to our analysis we found that the most of the

consumers are complaining about the fading of colour.They also want some more

exciting colour combination and stickers.

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CONCLUSION

It can be seen that the Indian car industry is a flourishing one, and a driving force behind

any economy therefore it is necessary that this sector is given proper importance. Maruti

which has now been divested has to compete in an environment with more than a dozen

player and no government support, hence it is necessary that the company retains it own

customer and attract more and more so as to produce in the large scale and attain

economies of scale.

Santro which is a major player in the market has swiped away maruti's share and in the

future would continue to do so, hence our study should be made handy so as to choose

the right marketing mix i.e. the product, price, place, promotion.

One has to see all the factors from the consumer's perspective to stay and reap the

benefits in the current market otherwise face the crisis just like Fiat India did.

For this it is necessary for the company to do a SWOT analysis, which would be helpful

in determining what are its strength, its weakness, the opportunities, and threats from its

rivals. Here is a very small SWOT analysis that has been made after listening to the

customer's perspective.

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SWOT ANALYSIS

WHAT IS SWOT ANALYSIS:-SWOT is acronym for strengths, weakness,

opportunities and threats. While a port unities and threats can be identified by

environment analysis, strengths and weaknesses can be identified by corporate appraisal

here these are briefly described as follows.

1. STRENGTH: Strength is an internal capability of the organization which it can

use to gain strategic advantage over its competitors.

2. WEAKNESSES: A weakness is inherent limitation or constraints of the

organization which creates strategic disadvantage its position.

3. OPPOTUNITY: An opportunity is a favorable condition in the organization’s

environment which enables it to strengthen its position.

4. THREAT: - A threat is an unfavorable condition in the organization environment

which causes a risk for damage to the organization’s positions.

SWOT ANALYSIS FOR THE COMPANY:-

STRENGTH

 Tried and tested.

 Wider service network.

 3. Easy availability of spares.

 Low maintenance cost.

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 16-Bit ECM As Compared to 8-Bit in other cars.

 EPS as Compare to hydraulic.

WEAKNESSES

 Outdated looks.

 Advertising or promotional schemes. 3. Low ground clearance.

OPPORTUNITY

 Japanese Technology. 2. True' Value.

 N2N (Fleet management)

 Maruti insurance.

 Wide sales and service network.

 Offers many variants in segment B with price difference of 3500/7. Lower

price car for every segment.

THREATS

 Santro's aggressive marketing.

 Hyundai's new offering Xing.

 Other car companies have also started offering variants in almost all the segment

 Inadequate supply, which means loss of customers.

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RECOMMENDATIONS

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RECOMMENDATIONS

 Maruti should come out with cars that are attractive and appeals to the masses.

 The Maruti 800 with a 5-speed transmission was a very impressive car in

terms of economy as well as drive comfort, customers feel that the 800 model

should again be launched with an overdrive 5th gear.

 The ground clearance of the cars especially Zen should be increased.

 The back seat divider should not be there due to uncomfortable sitting position

due to it.

 Supply should meet demand of the car; this is due to long waiting period in

most of the air-conditioned models.

 The boot space of the car can be increased, especially in the Zen.

 Dealers should deliver the vehicle on the day it has been promised.

 Frequency of advertisements should be increased.

 A brand ambassador can create hype in the customers mind.

 Maruti must focus on retaining its customers and the True Value is a good step

towards attaining it.

In the end one can say that a good marketing mix is all that is needed to sell the Maruti

vehicles because they are still the best on the Indian road and definitely Maruti has got

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some advantages over its rival which are hard to beat.

BIBLIOGRAPHY

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BIBLIOGRAPHY

WEBSITE

www.maruti.com

www.marutiudyog.com

www.google.com

BOOKS:

• Marketing Management (Kotler Philip)

• Marketing Management (Saxena Rajan)

• Foundation of Advertising Theory & Practice

(Chunawala.S.A / Sethia K.C.)

• Fundamental of Marketing (Etzel Machel / Walker Bruce. J.)

• Marketing management (Ramaswamy / Namakumari)

• Research Methodology (C.R. kothari)

SOURCES:

• Auto India

• Top Gear

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• Advertising and Marketing

• Annual Report of Maruti

APPENDIX

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QUESTIONNAIRE

1. Which car have you purchased? _____________________

2. What was the purchase mode?

a) Cash

b) Finance, which company

ICICI STANDCHART

HDFC CITI BANK

ABN-AMRO ANY OTHER __________

3. This is your:

a) First car, you had a two wheeler earlier

b) First car, but you never had a two wheeler earlier

c) Replacement car (if yes, please specify the previous car and the model)

____________

d) Additional car

4. This car primarily would be driven by _____________________

5. You choose this brand because :

Please rank in order of importance (1 being most important)

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Price [ ]

Schemes [ ]

Mileage [ ]

Resale value [ ]

Looks [ ]

After sales services [ ]

Reference [ ]

Advertisement [ ]

Features [ ]

Brand image [ ]

Repeat purchase [ ]

6. Which are the three brand (companies) that come to your mind when you think

of a car?

a) __________________

b) __________________

c) __________________

7. Which two TV car commercials (Ads) can you recall right now?

a) _______________________________________

b) _______________________________________

8. What were the sources of information when you purchase the car?

 Sports channels

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 Star sports ESPN

 Ten sports

 Any other ____________________

 News channels

 Aaj Tak

 Zee news

 Star News

 Any other __________________

 Entertainment channels

 Star

 Zee

 Any other ____________________

 News papers

 Times of India Hindustan Times

 Economic Times Amar Ujala

 Bainik Bhaskar Navbharat Times

 Any other _____________________

 Magazines

 Business World Overdrive

 India Today Outlook

 Auto car India Business Today

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 Any other _________________________

9. Are there any suggestions that you want the company to implement?

Thank you for your kind cooperation

Name ___________________________________

Profession ___________________________________

Age ___________________________________

Contact No. ___________________________________

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