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A SURVEY OF INDUSTRIAL CUSTOMER OF LUDHIANA
(TOWARDS CARS) Undertaken at PRESTIGE MOTORS LTD. LUDHIANA
In Partial Fulfillment of Masters of Business Administration At GURU NANAK DEV ENGINEERING COLLEGE, Ludhiana.
BHUPINDER SINGH BAWA (AGM) PRESTIGE MOTORS
VIJAY KUMAR ROLL NO 80101317057 MBA (2008-2010)
“When you give yourself, you receive more than you give.” The concepts learnt in academics are of no importance until they are practically applied. In today’s world it is imperative for the students of any Post- Graduate course to keep pace with the changing technology innovations taking place across the world. In alignment with this, I prepared a Summer Report after my 2 nd semester of MBA. I would like to express my sincere gratitude to Mr. Bhupinder Singh Bawa (AGM – Prestige Motors) for giving me the opportunity to work with his esteemed organization. I would like to thank Mrs. Sonia Sharma (Sales Executive) for giving me product knowledge and their valuable support throughout the project. It was very enriching and enlightening experience to work under their valuable guidance. Without their support this project would not have been possible. I would also like to thank my parents and friends those who have given their support & contribution, whenever required. Finally and most important I would like to thank to faculty of GNDEC (Especially to Prop. Parampal Singh) to provide me with such an opportunity that has enhanced my learning horizon Last but not least, I thank the almighty, and may he stand with all of us.
The project is based on the Customer profile and mapping to understand the consumer behavior regarding automobile sector. The project took 6 weeks for completion. The main motive of project report was to enhance my expertise and extensive knowledge I gained through my course, by applying it practically to the market of automobile Ludhiana. The project has been completed by collecting the primary data by interviewing the various industrialist of Ludhiana. Secondary data was also used as per the availability from different sources. In all the study was to find out at which geographical area the potential customer may exist and also to study the consumer behavior regarding automobile sectors. During the project, I learnt the procedures and various other aspects of marketing of automobile by applying theoretical knowledge and concepts to the best. Needless to say, errors and omissions are bound to occur. Last but not the least, I am grateful to all those who happened to be a part of the successful completion of this Project and my mind and heart for going hand in hand!
Page no. Chapter1 INTRODUCTION TO THE PROJECT EXECUTIVE SUMMARY INTRODUCTION TO AUTOMOBILE HISTORY Chapter2 INTRODUSTION TO VOLKSWAGEN GROUP HISTORY OF VOLKSWAGEN NINE AUTOMOTIVE COMPANIES OF VOLKSWAGEN ACHIEVEMENTS OF VOLKSVAGEN Chapter3 VOLKSWAGEN IN INDIA INTRODUCTION TO PRESTIGE MOTORS PRODUCT PROFILE FOR MODELS AVAILABLE IN INDIA Chapter4 OBJECTIVES O F THE STUDY RESEARCH METHODOLOGY ANALYSIS Chapter5 CONCLUSION LIMITATIONS RECOMMENDATION QUESTIONAIRE BIBLIOGRAPHY 65 66 67 68 71 48 49 55 35 39 42 16 20 27 31 6 7 12
INTRODUCTION TO THE PROJECT
The project title is “CUSTOMER PROFILE AND MAPPING TO UNDERSTAND THE CONSUMER BEHAVIOUR REGARDING AUTOMOBILE SECTOR Customer mapping is also known as geographical market analysis and it is the Easiest Way to Identify Where Your Customers Come From and Who They Are. This project focus on to know the profile and from which geographical part of Ludhiana the potential customer of Volkswagen cars can be and what is the consumer behavior of various users of cars like how many cars do they have and after how much do they like to change their cars . The whole survey has been done in various parts of Ludhiana city like Focal Point, Industrial Area, Sundar nagar . . So, in this research I studied the mapping of the customers and behavior of the customers. So, overall it was great learning experience for me to get such an introspect about automobile industry and various aspects related to its marketing strategy.
Customer mapping is the Easiest Way to Identify Where Your Customers Come From and
Who They Are. Customer Mapping Analysis may include: · A customer profile to understand where to find more like them. · Market penetration and market share reports showing performance in existing markets and expected performance in new markets. · Market ranking reports allowing company to prioritize resource deployment into new markets
Customer Mapping helps to know market potential by using following steps.
Map Customer Locations Create a "pin map" of where your customers live. Find out at a glance what parts of town you draw from and where to advertise. If you have your names and addresses in a data file, you can order right now with no payment required in advance. Identify Your Trade Area Map your customers to see what your trade area is. Compare your customers with the market potential to see your market penetration. Define Customer Profile Once you have your customers mapped, you can analyze the demographic characteristics and define a profile of your best customers. From this it is a short step to finding more potential customers like them.
Target Your Advertising Given your trade area, and your customer profile, you can focus advertising to the places and media that are most likely to hit your target market.
Customer mapping shows organizations which neighborhoods and markets they are serving with their products. The results of customer mapping can often be surprising and show trends that were otherwise unknown. In addition, customer mapping can be applied not only to an entire client database, but also to selected kinds of customers such as:
Those who have bought certain products, or certain services Those whose purchases exceed a specified amount
To gain the greatest value from Customer mapping, it can be combined with market share analysis to reveal the strongest areas that are being reached, and those that are not being reached.
Strategies for Customer Mapping
What is a geographic market worth to your business? Mapping Analytics will help you find the answer. Market potential can be expressed as a function of:
• • •
The number of customers purchasing Amount purchased Frequency of purchase
In other words, market potential = (how many * how much * how often)
Bottom Up or Top Down Market Analysis?
It all depends on your specific needs. Mapping Analytics can advise you on the best approach to sizing any market. We employ various methodologies and data sets to get you the answers you need.
A bottom up approach to market sizing starts with your customers. How much and often do they buy? What is their profile? How many potential customers do you have in the market based on your customer profiles? How can you reach them?
A top down approach starts with market and industry data. It takes a close look at a geographic market area and profiles the consumers and/or businesses to let you know their propensity to buy your products and services.
Mapping Analytics has expertise in both these approaches to market sizing. We also have a wealth of data sources through partnerships with the best data providers in the industry. We can match the right data for market analysis to your business and market strategy.
Cluster Analysis for Customer Mapping
We often use lifestyle clustering systems to size consumer markets. Clustering systems operate under the premise that "birds of a feather flock together." That means people with similar buying behaviors and demographic profiles tend to live close together. This helps you identify neighborhoods or markets where your potential is highest.
Cluster analysis identifies key segments in the population that are more likely to purchase your products than the average consumer. Knowing in which clusters people reside provides a reasonable means of understanding and predicting how they will behave. Understanding which clusters are more likely than others to purchase allows better targeting . Clusters are tied to geography, allowing you to identify and prioritize neighborhoods, trade areas and markets .
Access Market Opportunity
Market analysis services from Mapping Analytics will provide the key intelligence we need to rank and prioritize markets. We will know: · The top new geographic markets to target based on customer or revenue potential · Which markets where we currently do business have untapped potential Gaining this market understanding is essential to growing and expanding our business. But it isn't enough on its own.
Demographic Site Selection
When we work with Mapping Analytics, we will discover that demographic site selection leads to a sound business site selection decision. We include a series of important analyses when helping we select new sites, including: · Customer profiling · Mapping customer locations · Competitive analysis · Trade area development and mapping · Demographic, Census, and market data analysis · Market potential analysis
Customer profiling services from Mapping Analytics create descriptive segments or groups of your customers. Each segment has specific defining characteristics. A customer segment is not as simple as applying a demographic label, such as "women age 45-54" or "businesses with revenue >$500 million." Those descriptions alone won't tell you enough about your customer. For example, not all women age 45-54 have the same tendency to purchase your products. So a profile like this may not help you much, and you may waste resources marketing and selling to the wrong people. That's why Mapping Analytics takes a more comprehensive and disciplined approach to
customer profiling. We use your own customer data, lifestyle cluster data, and analytical techniques. The result is a more accurate description of your customer that can be used to identify areas where you can find more of your best customers.
What Goes Into a Customer Profile
What makes up a customer profile? It depends on whether your customers are businesses or consumers. In either case, you typically start with your own customer data (such as location, purchases, spending volume), append additional consumer or business data, then group into segments that share similar characteristic
Mapping Customer Attitudes
By Cliff Allen, ClickZ, Oct 17, 2000
However, it's hard to predict which car someone will buy just by knowing demographic characteristics. While one person of a certain age, income level, and family situation may drive an expensive imported car, his next-door neighbor might share the same demographic profile and drive an inexpensive domestic car. Thus, the demographic data doesn't explain the difference in automotive preferences. But understanding the differences in how these two consumers perceive the features and benefits of automobiles could help marketers understand their needs and interests and which cars they are likely to prefer. By surveying consumers about their attitudes toward the leading products in a market, marketers can map customers' dominant attitudes toward products. Market research companies such as Simmons conduct detailed interviews to gather the data needed to identify clusters of buyer attitudes.
INTRODUCTION OF AUTOMOBILE INDUSTRY
The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century, Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year 1893. It was the first internal-combustion motor car of America, and it was followed by Henry Ford’s first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. Chauffeurs usually drove it and emphasis was on comfort and style the cars exhibited design refinements such as balloon rather than speed. During the 1920s,
tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of predecessor was. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was built on compact and stylized lines, and was capable of 230 kmph (144 mph).This Indian automobile history, and today modern cars are aerodynamically shaped, and compact. Facts & Figures was the light, generally families. In 1930s, vehicles were less boxy and more streamlined than their
The automobile industry in India is on an investment overdrive. Be it passenger car or twowheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000crore of investment by 2010. Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will be launching a mini and may be a compact car. Most of the companies have made their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing capacity of 2.5lakh units per annum for an investment of Rs 6,500 Crore (Rs 3,200 Crore for diesel engines and Rs 2,718 Crore for the car plant itself). Hyundai and Tata Motors have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 Crore to India. Tata Motors will be investing Rs 2,000 Crore in its small car project. General Motors will be investing Rs 100 Crore, Ford about Rs 350 Crore and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs 3,000Crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. .Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each announced well over Rs 1,000 Crore of investment. Mahindra & Mahindra’s joint venture with International Trucks is expected to see an infusion of at least Rs 500 Crore. Industry performance in 2008-09 The Indian automotive market managed to stand up to the vagaries of the economic meltdown to show slightly growth during fiscal 2008-09. Overall vehicle sales at 97.23lakh grew 0.71 per cent from 96.54lakh units in 2007-08. When major automotive markets reported a 30-40 per cent decline, only a handful of countries managed to show growth. A few months ago, India was looking at negative growth but has turned around. It is actually better than expected. Passenger vehicle sales at 15.51lakh registered flat growth while commercial vehicle sales showed a 21 per cent drop. SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per cent growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent growth for passenger vehicles
The passenger vehicle market has weathered the downturn largely due to market leader Maruti Suzuki which holds 48 per cent of the market. The compact car giant clocked 7.22lakh units for 2008-09. Closest rival Hyundai Motor India sold 2.44lakh cars, a growth of 13 per cent. Most premium carmakers saw volumes shrink last fiscal. Toyota Kirloskar Motor’s numbers fell 15 per cent to 46,892 units while Ford India’s sales were down 17 per cent to 27,976 units. Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while General Motors India was down 8 per cent to 61,526 units. Among commercial vehicle makers, all major players saw substantial fall in volumes. Market leader Tata Motors with a 60 per cent plus share, showed 22 per cent drop in numbers at 2.34 lakh units while Ashok Leyland showed 37 per cent drop at 47,632. Either’s sales volume fell 37 per cent at 17,341 units and Force Motors was down 28 per cent at 7,819 units. “The freight movement is unlikely to improve this fiscal which will impact truck sales.
INTRODUCTION TO VOLKSWAGEN GROUP
Type: Headquarters: Industry: Products: Revenue: Operating income: Profit: Employees: Public Company Germany Automotive Cars, Trucks €113.8 billion (2008) €6.61 billion (2008) €4.68 billion (2008) 369,928(2008) Vehicle brand companies Audi Bentley motors ltd. Bugatti automobile Lamborghini Seat Skoda auto Scania Volkswagen passenger car Volkswagen commercials vehicles
INTRODUCTION TO VOLKSWAGEN
Type: Founded: Founders: Headquarters: Area served: Key people:
Subsidiary of Volkswagen group May 28, 1937 Ferdinand Porsche, Adolf Hitler Wolfsburg, Germany Worldwide
(Chairman of board of management)
Christian kingler: Ferdinand piech:
(board of management of the Volkswagen passanger cars) (chairman of Volkswagen supervisory board
Industry: Products: Website:
Automotive Cars, Trucks Volkswagen.com
Worldwide location of various Volkswagen plants
In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’ means ‘Car’. Hence:
Volkswagen means "people's car" in German, in which it is pronounced [fɔlksvaɡən].
Its current tagline or slogan is Das Auto (in English The Car).
Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages.
History of Volkswagen
Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make changes to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938 "KdF-Wagen", later known as the VW Käfer—or Volkswagen Beetle. When Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler's mother. After some time, they planned to change some features regarding various aspects. These changes included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and parts. The intention was that ordinary Europeans would buy the car by means of a savings scheme ("Save five Marks a week, if you want to drive your own car"), which around 336,000 people eventually paid into. The VW car was just one of many KdF programmes which included things such as tours and outings. The prefix "Volks" ("People's") was not just applied to cars, but also to other products in Europe; the "Volksempfänger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16 September 1938. VW Type 82E Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle we know today. It was one of the first to be evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.
New factory started
The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called Wolfsburg, which had been purposely built for the factory workers. This factory only produced a handful of cars by the time war started in 1939. None were actually delivered to any holder of the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on 20 April 1938 (his 49th birthday). At the times of 1st world War, Volkswagen War meant production changed to military vehicles, the Type 82 Kübelwagen ("Bucket car") utility vehicle (VW's most common wartime model), and the amphibious Schwimmwagen which were used to equip the German forces. By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was still in disrepair. Due to roof and window damage, rain stopped production and steel to make the cars had to be bartered for new vehicles.
Volkswagens were first exhibited and sold in the United States in 1949, but only sold two units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a "Victory Wagon". Volkswagen of America was formed in April 1955 to standardize sales and service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically over the years, the total reaching one million in 1955. Sales soared — due in part to the famous advertising campaigns by New York advertising agency Doyle, Dane Bernbach. Led by art director Helmut Krone, and copywriters Julian
Koenig and Bob Levinson, Volkswagen ads became as popular as the car, using crisp layouts and witty copy to lure the younger, sophisticated consumers with whom the car became associated. Despite the fact it was almost universally known as the Beetle (or the Bug), it was never officially labeled as such by the manufacturer, instead referred to as the Type 1. The first reference to the name Beetle occurred in U.S. advertising in 1968, but not until 1998 and the Golf-based New Beetle would the name be adopted by Volkswagen.
Volkswagen was in serious trouble by 1973. Beetle sales had started to decline rapidly in European and North American markets. The company knew that Beetle production had to end one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known as the Polo, Golf and Passat. Volkswagen Golf, sold as the rabbits in USA
While Volkswagen's range of cars soon became similar to that of other large European automakers, the Golf has been the mainstay of the Volkswagen lineup since its introduction, and the mechanical basis for several other cars of the company. There have been six generations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983 (sold as the Rabbit in the United States and Canada and as the Caribe in Latin America). It would be produced in the United States as the Rabbit until the spring of 1984. The secondgeneration Golf hatchback/Jetta sedan ran from late 1983 to late 1991, and a North American version produced in Pennsylvania went on sale at the start of the 1985 model year.
In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically, despite the success of models like the Golf elsewhere. The Japanese and the Americans were able to compete with similar products at lower prices. Sales in the United States were 293,595 in 1980, but by 1984 they were down to 177,709. Volkswagen had entered the super-mini market in 1976 with the Volkswagen Polo, a stylish and spacious three-door hatchback designed by Bertone. It was a strong seller in West Germany and most of the rest of Western Europe, being one of the first foreign small cars to prove popular in Britain. The second generation model, launched in 1981 and sold as a hatchback and "coupe" (with the hatchback resembling a small estate car and the coupe being similar to a conventional hatchback), was an even greater success for Volkswagen. It was facelifted in 1990 and was still selling well after 15 years, when it was replaced by the third generation Polo in 1994.
The Volkswagen New Beetle concept, especially in North America.
In 1994, Volkswagen unveiled the J-mays-designed Concept One, a "retro"-themed car with a resemblance to the original Beetle but based on the Polo platform. Its genesis was secret and in opposition to VW management, who felt it was too backward-looking. Management could not deny the positive public response to the concept car and gave the green-light to its development as the New Beetle. The production car would be based on the Golf rather than the Polo, because the Polo frame was too small for the car to pass crash test standards in the U.S. It has been quite popular in the North America and is now gaining in the EU.
Volkswagen group — the Volkswagen Bora (the sedan, still called Jetta in the USA), New Beetle, SEAT Toledo, SEAT León, Audi A3, Audi TT and Skoda Octavia. However, it was beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo 156 and runner-up Audi A6. In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi), Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group portfolio. Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195—a dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.VW plans to close out the decade with the release on several new vehicles worldwide and a barrage of advertising.
The Fifth-Generation Golf
Volkswagen is recognized as one of the leading small diesel engine manufacturers, and is partnering with Mercedes and other companies to market BlueTec clean diesel technology, calling it Blue-Motion. Volkswagen has offered a number of its vehicles with a TDI (Turbocharged Direct Injection engine), which lends class-leading fuel economy to several models. According to the United States Environmental Protection Agency, four of the ten most fuel efficient vehicles available for sale in the U.S. in 2004 were powered by Volkswagen diesel engines
Electric and alternative fuel vehicles: Clean diesel
A Blue Motion Volkswagen Polo Volkswagen has been selling clean diesel-powered engines for the European market since 2003. VW developed Turbocharged Direct Injection (TDI) technology for diesel engines, and it offers a wide array of TDI powertrains. As modern diesel fuel economy is 30 percent higher than gasoline engines, a proportional reduction of greenhouse gases emissions is achieved with clean diesel technology. Volkswagen is also developing hybrid technology for diesel-electric. A VW Golf turbo-diesel hybrid concept car was exhibited in the 2008 Geneva Motor Show, which has a fuel economy of 70 mpg (3.3 liters per 100 km).
Electric vehicles: Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system. Volkswagen boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles.
There will definitely be compact hybrid models, such as Polo and Golf, and without any great delay”, with gasoline and diesel engines.
The 2003 VW Gol 1.6 Total Flex was the first full flexible-fuel vehicle launched in Brazil, capable of running on any blend of gasoline and ethanol (E100).
Volkswagen Group owns nine active automotive companies:
99.55% ownership; the Audi marque is the sole active brand of the former
Auto Union, bought from Daimler-Benz on 30 December 1964.
bought in June 1998.
100% ownership by Audi AG; company was
Bentley Motors Limited,:
100% ownership by Volkswagen AG; the
company (at the time known as Rolls-Royce & Bentley Motors Ltd.) was bought on 28 July 1998 from Vickers, but did not include the 'Rolls-Royce' brand name. The RollsRoyce marquee was subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.
Bugatti Automobiles :
100% ownership via the Volkswagen France
subsidiary of VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the right to the Bugatti marque.
Initially cooperation agreement with Audi AG, 51% (1986) and 100%
ownership by the VW Group since 1990, and was the first foreign subsidiary in the VW
Škoda Auto,:- 100% ownership since 1999.
Volkswagen Passenger Cars,:- 100% ownership.
Volkswagen Commercial Vehicles
Nutzfahrzeuge' (VWN) (German) — 100% ownership; started operations as an independent entity in 1995. VWCV/VWN is in charge of all commercial vehicle developments within the Group and has control over Scania and is a shareholder in MAN AG.
70.94% of voting rights as at 27 February 2009 .
Current Volkswagen models
• • • • • • • • • • • • • • • • • • •
EuropeCaddy Life Eos Fox Golf Mk6 Golf Plus Golf Variant Jetta Mk5 Multivan New Beetle New Beetle Convertible Passat Mk6 Passat CC Phaeton Polo Mk4F Scirocco Sharan Touran Tiguan Touareg
Achievements of Volkswagen
In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi-developed Iltis, placing 1st, 2nd, 4th and 9th overall. Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first female to win the Dakar in 2001, to help design and compete a Dakar Racer. In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo, to become the ADAC Volkswagen Polo Cup. In 2004, Volkswagen Commercial Vehicles enter the European Truck Racing series with the Volkswagen Titan series truck - it became back-to-back champions for the 2004 and 2005 series. In 2003, the Hannover based team starts with a 2WD buggy named Tarek. It places 6th outright but took 1st in the 2WD and Diesel class. In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and 2nd in the Diesel class. In 2005, an updated Race-Touareg with slightly more power is entered, with driver Bruno Saby, finishing in 3rd overall and 1st in the Diesel class!
In 2006, Volkswagen released the most powerful Race-Touareg yet: the Race-Touareg 2. Five vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st in the Diesel class. In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg race models finished 1st and 2nd
Winner of numerous international awards and accolades worldwide.
2008 • February 20, 2008 - Volkswagen Tiguan is voted SUV of the year by "OFF ROAD" magazine readers • January 29, 2008 - Volkswagen receives award for increasing shareholder value • January 29, 2008 - Value champions 2008: Volkswagen Tiguan and Golf Estate • January 24, 2008 - Golf GTI is one of “10 Best Cars of 2008” • January 18, 2008 - What Car? Award 2008: Double for Volkswagen • January 17, 2008 - Prize for TSI and DSG: “Yellow Angel 2008” Award for Volkswagen’s High-End Technologies Latest
2007 • May 16, 2007 - Volkswagen models voted “Company Cars of the Year” • April 20, 2007 - Volkswagen wins 10 gold at Fleet Awards 2007 • March 27, 2007 - Multiple awards for Volkswagen advertising • March 26, 2007 - "Innovation of reason" 2007: Award for high temperature fuel cell from Volkswagen • January 4, 2007 - Volkswagen unveiled the cleanest ever TDI engine.
2006 • September 12, 2006 - Volkswagen Ranks First in J.D. Power Environmental Study • September 12, 2006 - Aerodynamic package makes Volkswagen Passat an eye-catcher • June 20, 2006 - Volkswagen receives environmental award from Federation of German Industries • March 2, 2006 - Auto1 Award- The Passat is Europe’s Number One • January 20, 2006 - Passat Awarded Renowned What Car Trophy as Best Family Car • January 19, 2006 - The Passat is Germany's Favourite Car 2006-ADAC readers award Volkswagen the 'Gelber Engel' prize -
2005 and 2004 • May 23, 2005 - The Passat - receives five star rating - top result in the Euro NCAP crash test • April 8, 2005 - The Golf - more than 25 awards worldwide • March 23, 2005 - Volkswagen Phaeton moving ahead • February 16, 2005 - The new Passat launched with four different engines • January 30, 2004 - The Volkswagen Touareg – an outstanding off-road vehicle - International experts award prizes to the Volkswagen SUV -
Volkswagen in India
Recently Volkswagen paved the way for sustainable market activities in India. With the investment agreement signed at the end of 2006 the brand sets a new course that unites two success stories – Volkswagen and India. Volkswagen AG is to build a new production plant in Pune in the Indian state of Maharashtra. With investment totaling some 410 million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial park near Pune. The German brand and Europe’s largest automotive manufacturer will be entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian market offering all the features of a genuine Volkswagen. For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market up from the third quarter of 2007. To accompany the growing supply of Volkswagen Passenger Cars, the Group has established a separate Indian sales company in 2007, initially for Volkswagen as well as for Audi. “Volkswagen Group Sales India Private Limited” registered in Mumbai will distribute locally manufactured and imported vehicles in India.
Thus, Volkswagen can bring one of it's upper-premium sedan as the first locally produced vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its bestseller. The Passat has become the very image of automotive progress, representing what “Made in Germany” means. This long-term success is confirmed by numerous accolades from experts, journalists and customers who have put the car through its paces in recent months. This image is characterized by vehicle size, drive technologies, safety features such as airbags, ABS
and ESP in addition to quality details including galvanized bodies. Imported vehicles such as the premium Sports Utility Vehicle Touareg will complement the range.
Various positions of Volkswagen Dealers in India
Current Existing Dealers in India
• Ludhiana - Prestige Motors, Lally Motors India Private Limited\ • • • • • • • • • • Ahmedabad - Volkswagen Ahmedabad Automark Motors Pvt.Ltd Bangalore - Elite Motors Pvt.Ltd Bangalore - Volkswagen Palace Cross Chandigarh - Genuss Motors, Swami Automotives Pvt.Ltd. Cochin - Volkswagen Cochin EVM Motors & Vehicles India Pvt Ltd Chennai - Volkswagen Chennai ABRA Motors Private Limited Coimbatore - Volkswagen Coimbatore Ramani Cars Private Limited Delhi - DD Autoworld Private Limited Delhi - Kashyap Vehicle Works Private Limited Delhi West - Volkswagen Delhi West Worldclass Automobiles Pvt. Ltd.
• • • • •
Goa - Volkswagen Goa Caculo Automotive Pvt. Ltd Hyderabad - Orion Motors Jaipur - Volkswagen Jaipur Tanya Cars Pvt Ltd Kolkata - Volkswagen Kolkata OSL Exclusive Pvt Ltd Mumbai - Volkswagen Downtown Mumbai
• Pune - Volkswagen Pune Vidyut Motors Pvt. Ltd • Surat - Volkswagen Surat Navjivan Auto Square Pvt. Ltd
INTRODUCTION TO PRESTIGE MOTORS
PRESTIGE MOTORS is a division of LALLY MOTORS, owned by the NRI Lally family and the Official dealer for Volkswagen AG in India and first Volkswagen passenger car dealer in Punjab currently operational in Ludhiana at National Highway-1 (G. T. Road) since March-2008.
The strategic intent is to be the premier partner in the Indian automotive market, providing products and service that exceed the current standards.
A long-term strategy is being the leading benchmark company in the Indian automotive market by constant investments in our people and facilities.
Prestige Motors are fully committed towards total customer satisfaction. We believe in continual professional improvement. Hence we keep updating our systems and facilities to offer the very best for: • Total Commitment to customer satisfaction. • • Focus on employee’s involvement and improve retention. Work professionally and honestly.
Prestige Motors Sales
• Highly qualified Sales Team is ready to advise customers on any specific want and 4 need that would require and will assist in making the right choices.
Products Profile for models available in India:
Vehicle Model Engine Type Displacement(liters/cc) Max. Torque(NM at RPM) Transmission Bore/Stroke(mm) Max. Power output(kw(PS) @ RPM Emission Category Price Passat TDI 2.0 Exclusive 4-cylinder diesel engine 2.01/1968cc 320/1750-2500 6 speed DSG-direct shift gearbox 81/95.5 103(140) at 4000 Euro 4 2518279
Vehicle Model Engine Type Jetta 1.6 L (Petrol) Jetta 1.6 L TDI (Diesel) Jetta 1.9 L TDI (Trendline)/Comfortline diesel 4-cylinder diesel engine 1.9/1896cc 250/1900 5 speed manual /6 speed automatic DSG gearbox 77(105) at 4000 1,463,613/ 1,713,646
4-cylinder engine Displacement(liters/cc) 1.6/1595cc Max. Torque(NM at RPM) 148/3800 Transmission 5 speed manual gearbox Max. Power output(kw(PS) @ 75(102) at 5600 RPM Price 1,335,851
Vehicle Model Engine Type Touareg 3.0 V6 TDI 6-cylinder ‘V’turbo diesel Displacement(liters/cc) 3.0/2967 Max. Torque(NM at RPM) 550/2250-2500 Bore/Stoke mm 83.0/91.4 Compression Ratio 17.0:1 Max. Power output(kw(PS) @ 176@4000-4400 RPM Fuel Type Diesel 51CZ Touareg 5.0 V10 TDI 10-cylinder ‘V’ bi-turbo diesel 5.0/4921 750/2000 81.0/95.5 18.5:1 230@3750 Diesel 51CZ
Introducing POLO in India
Volkswagen India will launch its first small car, the Polo, in the domestic market in the early part of 2010. The car will be priced and positioned in line with the A2 compact car category, which includes models such as Maruti's Swift & Ritz, and be built on a new platform. The Polo will be made at the company's new manufacturing facility at Chakan, Pune, with locally sourced auto components being about 50 per cent.
"The all-new platform for the Polo has been designed keeping Indian road conditions in mind. The Polo will be benchmarked against the market leader in this segment, which is Maruti Suzuki's Swift. The Polo would be available in the petrol and the diesel engine variant. Company hope to sell around 30,000 units in 2010. Then, by 2014, and hope to cross the 100,000 mark, by which time the car market in India would have crossed two million units Till date, VW India has invested Rs 3,800 crore (Rs 38 billion) in setting up its operations in India. The facility at Chakan has an annual capacity of up to 110,000 cars on a single shift.
Competitors of existing Volkswagen model in India
Competitors of JETTA (14-18lakhs) Honda Civic Hyundai Sonata(Emberra) Skoda Octavia Skoda Laura Toyota Corrola Altis Fiat 500 Competitors of Passat(24lakhs) Toyota Camry Honda Accord BMW 3series Skoda Superb
OBJECTIVES OF THE STUDY
The study has been under taken to analyze the customer profile and mapping to understand the consumer behavior regarding automobile sector. Objectives To know the customer profile. To analyze the exact segregation of the industry of Ludhiana. To know at which geographical segment the potential customer exist.. To know the consumer behavior regarding cars on following parameter: (a) To analyze the factors that influence the customer before buying a car.. (b) To find out the replacement pattern of customers. (c) To find out the purchase pattern.
A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other.Research studies evolve through a series of steps, each representing the answer to a key question. This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. RESEARCH DESIGN I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are : Defining the information need Design the exploratory, descriptive and causal research.
The research process has four distinct yet interrelated steps for research analysis It has a logical and hierarchical ordering: • • • • Determination of information research problem. Development of appropriate research design. Execution of research design. Communication of results.
Each step is viewed as a separate process that includes a combination of task , step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing.
The method I used for exploratory research was Primary Data Secondary data
New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data, which entails the use of
data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is basically collectedby getting questionnaire filled by the respondents.
Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government. Secondary source of data used consists of books and websites . My proposal is to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. some purpose other than the current investigation Researching information, which has already been published? Market information compiled for purposes
Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personally
first hand information was collected by making the people fill
questionnaires. The primary data collected by directly interacting with the people.
DETERMINING THE SAMPLE PLAN AND SAMPLE SIZE TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling
This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors: • Project goals • How you plan to analyze your data • How variable your data are or are likely to be • How precisely you want to measure change or trend • The number of years over which you want to detect a trend • How many times a year you will sample each point
I have targeted 120 people for the purpose of the research. The target population influences the sample size. The target population represents Ludhiana region. The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section.
ERRORS IN THE STUDY
There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the interviewer’s views or probing, as interviewers are guiding the respondent while the questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the interview can greatly affect their level of interest and willingness to answer openly. As interviewers, probing and clarifications maximize respondent understanding and yield complete answers, these advantages are offset by the problems of prestige seeking, social desirability and courtesy biases.
The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated. The questions have to be worded carefully so that the questions are not loaded and does not lead to a bias in the respondents mind. The respondents selected to be interviewed were not always available and willing to co operate also in most cases the respondents were found to not have the knowledge, opinion, attitudes or facts required additionally uninformed response errors and response styles also led to survey error.
We have taken the sample size of 150, which cannot determine the buying behavior of the total population. The sample has been drawn from only National Capital Region.
Research design is a conceptual structure within which research was conducted. A research design is the detailed blueprint used to guide a research study towards its objective. It is a series of advanced decision taken together comprising a master plan or a model for conducting the research in consonance with the research objectives. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximum information with the minimum effort, time and money.
ANALYSIS HAS BEEN DONE BY TWO METHODS 1. GRAPHICAL METHOD 2. PERCENTAGE METHOD
Type of Business
Type of the business No. of respondents Percentage Manufacturer 412 78% Trading 81 15% Service 37 7%
From this analysis it came to know that in Ludhiana the 78% of the business is manufacturing, 15% business is trading and 7% business is service. It means the Ludhiana industry is a manufacturing industry.
Location of industries
Location No. of respondents Percentage Ind. Area 299 56% Focal point 192 36% Sunder Nagar 39 8%
From this analysis it came to know that most of the industry of Ludhiana is concentrated around focal point area (36%) and industrial area (56%) and the then sunder nagar (8%).
Type of manufacturing industry
Type of Manfg. industry No. of industries Percentage Cycle parts 130 32% Auto parts 83 20% Hosiery & dyeing 72 18% Forging 51 12% Others 76 18%
From this analysis it came to know that in Ludhiana the 32% industry is cycle industry and then followed by Auto parts industry (20%), Hosiery(18%) and rest by others industries.
Percentage of various car companies
Preferred Brand No. of cars Percentage Maruti 362 39% Hyundai 126 14% Honda 144 15% Tata 109 12% Toyota 75 8% Others 115 12%
From this analysis it came to know that 39% of the domestic car market is owned by maruti and then followed by Honda(15%) , Hyundai(14%), Tata(12%), Toyota(8%) and others(12%).
Price wise Distribution of cars
Price range of cars No. of cars Percentage 3-7lakhs 449 48% 7-12lakhs 352 38% 12-20lakhs 84 9% 20-30lakhs 22 2% 30+lakhs 24 3%
From this analysis it came to know that the cars with range 3-7lakhs holds 48% of the market while the cars with range 7-12lakhs holds 38% of the market and rest of the market is holed by other range of cars. Which means most of the market is hold by 3-7lakhs and 7-12lakhs cars. Mode of Purchase No. of respondents Percentage Cash 122 23% Finance 408 77%
Mode of Purchase
From this analysis it came to know 77% of customer prefers to purchase cars on finance due to various reasons. And this ratio also show the purchasing power of the customer
Preferred Bank for Finance
Total no. of respondents-290
Preferred Bank No. of respondents Percentage ICICI 90 31% HDFC 55 19% Nationalized 84 29% Any other 61 21%
From this analysis it came to know 31% of people prefer ICICI bank, 29% of people Nationalized bank, 19% of people prefer HDFC bank and 21% of people prefer others bank for financing the cars. Hence ICICI is the prior option chosen by the customers to finance their cars.
The above study shows that Ludhiana industry is manufacturing industry and most of the industry resides in focal point and industrial area. In manufacturing industry cycle industry, auto parts industry and hosiery industry are major industries. And among car companies maruti holds the major part of the market followed by Hyundai, Honda, Tata and then other companies. And most number of cars hold by customers are in the range 3-7lakhs (35%) and then 7-12lakhs range. Most of the customers (77%) prefer to purchase cars on finance. Most customers change their cars after 3-4 year interval. As this result may not be suitable to all the regions of the country because of the culture, standard of living and volume of the market. The research concludes that Volkswagen have great opportunity to penetrate in the market.
LIMITATIONS OF THE RESEARCH PROJECT
The research study suffers from following limitations: The Ludhiana market was too vast and it was not possible to cover each and every customer in the available short span of time. Generally, the respondents were busy in their work and were not interested in responding. Respondents were reluctant to disclose complete and correct information about themselves and their organization.. Most respondents were reluctant to provide exact information as in why they preferred particular company’s car. The research was conducted in present prevailing conditions. There can be some fluctuations in the market, which can offset the findings. The project is carried out for the period of 45 days only.
Measurement of customer satisfaction is complex subjects, which uses non-objectives method, which is not reliable. The sample unit was also 120 respondents
• • • Volkswagen should increase their service stations. Facilities regarding after sales services should be increase. People were not aware about VW brand, there should be more brand awareness in the market. • • They should increase advertisement activities. People didn’t recognize difference between prestige motors & Prestige Honda, that should be rectified. • • They should promote more road shows in the respective areas. The company should promote about the entire feature offered by it.
QUESTIONNAIRE FOR THE CUSTOMER PROFILE MAPPING
Name …………………………. Q1: What is your age? (a) 20-30 Q2: Are you a: (a) Main earning member Q3: What is your occupation? (a) Businessman If Businessman (a) Company Name : (b) Designation : (c) Address: Q4: What type of business are you doing? (a) Manufacturing If Manufacturing: (a) Cycle parts (b) Auto parts (c) Hosiery/Dying (d) Forging (b) Trading (c) Service Industry (b) Salaried (c) Self Employed (b) Other earning member (b) 30-40 (c) 40-50 (d) 50+
(e) Any other (specify)…………. Q5: How many various others units do you have? Place 1………………………………………………………………………… Place 2………………………………………………………………………… Place 3………………………………………………………………………… Place 4………………………………………………………………………… Q6: What is your monthly household income? (a) Below 50,000 (b) 50,000-1, 00,000 (c) 1, 00,000-1,50,000
(d) Above 50, 00,000 Q7: Number of cars currently owned Year of Purchase
4 Make Model
1. Research methodology – C.R. kothari.
WEBSITES:http:// www.volkswagen.co.in http:// www.prestigemotors.co.in http:// www.automobile.com http:// www.google.com
Staff of Prestige Motors