Dissertation On Car Market and Buying Behavior- A study of Consumer Perception

Towards The Partial Fulfillment of Post Graduate Diploma in Management

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Table of Content

1. Executive Summary………………………………………06 2. Introduction………………………………………………..08 3. Overview of the Auto segment…………………………14 4. Review of Literature………………………………………20 5. Objective of the study……………………………………29 6. Scope of the study………………………………………..30 7. Research methodology………………………………….32 8. Limitation of the study…………………………………..39 9. Car’s Profile………………………………………………..40 10. Finding and Analysis…………………………………….51 11. Cross Tabulation………………………………………….68 12. Conclusion…………………………………………………71 13. Scope of the Study……………………………………….74 14. Annexure…………………………………………………...75

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Executive Summary
The automobile industry today is the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the passenger car sales have increased at the rate of 38% per annum in June 2005-06 over the corresponding period in the pervious year. Further competition is heating up in the sector with a host of new players coming in and other like Porsche, Bentley, Audi, and BMW all set to venture in the Indian markets. One factor that could help the companies in the marketing of their product is by knowing and creating a personality for their brands. This report attempts to answer some of the questions regarding brand personality of selected cars in India by conducting the market research. This report is categorized into parts, deals with introduction to brand personality, companies selected, product and the industry. The automobile industry today is the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the passenger car sales have increased at the rate of 25% per annum in June 2005-06 over the corresponding period in the previous year. Further competition is heating up in the sector with a host of new players coming in and others like Porches, Bentley, Audi, and BMW all set to venture in Indian markets. One factor that could help the companies in the marketing of their products is buying Behavior of the consumers. The Buying Behavior of the customers can be studied by knowing their perceptions about the cars in the market and about the possible entrants in the market. One such technique is by knowing and creating a personality for the brands. This personality sketching will help in knowing what a customer (or a potential customer) thinks about a given brand of car and what are the possible factors 3

This way these companies will be able to find their share in the everexpanding Indian market pie. The research will track the customer satisfaction in the following two layers: • • Product related Parameters Dealers related parameters The customer satisfaction index will be calculated for the car brands taken into consideration. Thus. by measuring the” willingness of existing users of a car to recommend it to others” will help the car manufacturers to chalk out the entire Customer Buying Behavior. and tools for evaluating consumer satisfaction. Similarly. 4 . The study will analyze the applicability of existing research concepts.guiding a possible purchase. The reports shall attempt to answer some of the questions regarding brand personality of selected cars in India by conducting a market research. theories. It will be mainly a primary research and the information will be gathered from both primary and secondary research. the idea of measuring the customer satisfaction will serve the same purpose of determining the customer perception. The market research will be helpful for the new car entrant companies in India to find out the possible gaps between the customer expectations and the present market offerings.

•INTRODUCTION

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INTRODUCTION
It is true fact that if you are satisfied you recommended to others. Word of mouth and customer satisfaction play a very important role in determining market perception about an automobile. It is the market perception that determines the success of a company and so it is very important for the car manufacturers to measure the “willingness of existing users of a product to recommend it to others”. The same is a lot of interest to customers as well for it helps them make the purchase decision. A car is one of the most significant purchases that an Indian household makes and this project addresses the most important question that perplexes car manufacturers: “What makes the perfect car that influence will willfully purchase?” The project highlights the factors that influence the buying decision of a consumer. The factor under consideration would be: Price Income of the consumer Features in the car Safety standard Warranty scheme Finance facility

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Is an Indian consumer ready for more? Which is the driving motive behind the effective demand of the car? How the coming of new models like swift does is going to effect the buying decision of consumer and especially the Tata 1 lakh car. In other words, from the spread of choices offered by various manufacturers under various segments, of which one the customer will finally turn the ignition on and drive. Customer satisfaction index: some of the most advance thinking in the business world recognizes that customer relationships are best treated as assets, and that methodical analysis of these relationships can provide a road map for improving them

“If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin (1824-1907) Clause 8.2.1 in ISO9000: 2000 states: “As one of the measurements of the performance of the quality management system, the organizations shall monitor information relating to customer perception as to whether the organization has met customer requirements. The method for obtaining and using this information shall be determined” The requirement has been there in the QS9000 standard clause 4.1.6 which says: “… Trends in customer satisfaction and key indicators of customer dissatisfaction shall be documented and supported by objective information. These trends shall

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With better understanding of customer’s perceptions. We cannot create satisfaction just by meeting customer’s requirements fully because these have to be met in any case. where they stand in comparison to their competitors. or appropriate benchmarks. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. and reviewed by senior management. Customer expectations are the customer-defined attributes of your product or service. accessibility and attitudes       8 .” There is obviously a strong link between customer satisfaction and customer retention. Major attributes of customer satisfaction can be summarized as: Product quality Product packaging Keeping delivery commitments Price Responsiveness and ability to resolve complaints and reject reports Overall communication.be compared to those of competitors. companies can determine the actions required to meet the customer’s needs. However falling short is certain to create dissatisfaction. They can identify their own strengths and weaknesses. Customer’s perception of service and quality of product will determine the success of the product or service in the market. chart out the path future progress and improvement.

usually as a percentage 9 . The customer satisfaction index represents the overall satisfaction level of that customer as one number.Values + Benefits - Features - Attributes We cannot begin to address the customer satisfaction issue we define the parameters and measures clearly.

The buying process involves the following steps: Problem Recognition Information search Evaluation Decision Buy Post Purchase Dissonance Dissatisfaction = Brand Rejection Satisfaction = Brand Acceptance 10 .

 Understand the elements underplaying in each segment  Deducing A analytical overview through different statistical methods Recommendation comes from satisfaction and satisfaction comes from Product Quality Service Quality Relationship Quality 11 .“The fact that word of mouth sales are a big deal in this industry has also helped. Industry players and market surveys reveal that 20-30 percent of sales are through word of mouth”. For the purpose of the project has undergone through  Surveying the relevant consumer base through exhaustive questionnaire.

. U. Foreign car companies have discovered the Indian consumer as well as the R & D potential in the Indian technical fraternity and are setting up manufacturing plants right and left across the country at lower costs. In the long run India is well set to become a key market for automotive 12 . there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. who are increasingly investing in India. and banking liberalization that has fueled financing-driven purchases. and as the market grows and customer's purchasing abilities rise.OVERVIEW OF THE AUTO SEGMENT Indians have emerged as avid car enthusiasts sporting their prized possessions as status symbols and speed machines. India is fast integrating itself into the world economy and open to international automotive companies. S. and (2) The Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations. These trends have encouraged many multinational automakers from Japan. The Indian automotive and component industry is looking to increase the quality of production from existing levels. to develop new products and to increase exports. Industry observers predict that passenger vehicle sales will triple in five years to about one million. and Europe to enter the Indian market mainly through joint ventures with Indian firms. India is increasingly becoming a global automotive hub both for the vehicles and component industry. A. reduction of tariffs on imports. This boom has been triggered primarily by two factors: (1) increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number. The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles.

Delphi and MICO/Bosch are utilizing India’s well developed IT / software capabilities and have set up R&D hubs here for their global operations 13 . Daimler Chrysler. Additionally. Toyota. companies such as GM.and component manufacturers in terms of local demand and as a base for export.

000 million units (with a registered CAGR of 68 per cent over the past 4 years) during financial year 2004 The Indian two-wheeler Industry is one of the largest in the world. 14 .Industry Size  The domestic Indian passenger car market (including utility vehicles) totaled 900. Presently a US$ 6. The passenger car market is projected to grow at a CAGR of 12. Growth in the mid-size and premium car segments is expected to outpace the overall market growth.7 billion industry.3 per cent over the next few years.000 units (with a CAGR of 10 per cent over the past 4 years) while the exports were 130. and is expected to  maintain robust growth in the future At the back of this phenomenal automotive growth is the success of the Indian auto  component industry. it is expected to almost treble in less than eight years time to US$ 17 billion by 2012 India offers a distinct technological and cost-competitive advantage. which global  Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both manufacturing and research facilities.

Indian Automobile Industry 15 .

surpassing China in the process Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer & is a driver of product and process technologies. Automobile industry in India is today poised for the big leap. and marketing. because of its • • • • • • high machine tool capabilities Extremely capable component industry Most of the raw material locally produced Low cost manufacturing base Highly skilled manpower Special capability in supplying large volumes 16 . design and development. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure.Automobile Industry in India is still in its infancy but growing rapidly. • • • • India is the 2nd largest two wheeler manufacturer in the world Second largest tractor manufacturer in the world 5th largest commercial manufacturer in the world 3rd largest car market in Asia. and has become a excellent manufacturing base for global players.

Indian Automobile Manufacturers in India and Plant Locations 17 .

and Toyota. both locally assembled and imported. Honda. Competition in this segment is stiff with Maruti the market leader with around 55% market share. Ford. A large number of new models. Hyundai (Accent/Sonata) and Skoda (Octavia). General Motors.Domestic and Foreign Vehicle Manufacturers: Passenger Vehicles The main domestic manufacturers of passenger vehicles are as follows: • • • • Maruti Udyog Tata / Telco Mahindra / Mahindra Hindustan Motors Foreign competitors manufacturing locally including Hyundai. • The mid / luxury range is developing with the introduction of Ford (Ikon). The A/B segment accounts for over 65% of the total passenger vehicles produced. Hyundai (Santro) and Fiat (Palio) however are eroding Maruti’s long standing dominance in this segment. In terms of volumes: • The A/B segments are where India’s strength and future lies. although the volumes are not significant. 18 . New models from Telco (Indica). have also revitalized the market. Car demand has seen a turnaround since mid 2001 thanks to heavy discounts and cheaper finance.

g. There has been a significant turn around in this segment over the last 18 months with over 30% growth being seen in terms of both production and sales.IVECO (manufacturing their range of trucks in association with Ashok Leyland. although in partnership with one of the domestic manufacturers E. This sector has received a huge boost with India’s massive demand from the infrastructure sector (particularly roads). The clear market leader.• The UV segment remains sluggish with growth at just over 1%. 19 . Toyota and Telco domestic UV business remains flat.:. Volvo but again volumes are not large. Mahindra (44% market share) posted increased sales of 9% in the first 3 quarters of 2002/03. Commercial Vehicles The main Indian companies in the Commercial Vehicle segment are: • • • • • TATA Engineering and Locomotive Company (TELCO) Ashok Leyland Bajaj Tempo Ltd Eicher Motors Ltd Swaraj Mazda There is only one international company currently manufacturing CVs in India. cyclical fleet replacement by fleet owners and an upturn in the cement and steel sectors. Other global players are active.

3% Daimler Chrysler Mitsubishi Skoda 1% 1% 0. together hold close to 75% of market b) Daewoo stopped production.2% 1% Tata 44% Sw araj Mazda 8% • • Maruti (JV of Suzuki).604 Mn LCV 0. Tata and M&M are the key players a) Followed by Hyundai and Tata. mainly due to financial issues 2 years back 20 .083 Mn Hyundai 18% Tata 13% Fiat 4% Ford 3% HM 2% Ashok Leyland 1% Bajaj Tem po Eicher 7% 8% HM 2% M&M 30% Maruti 55% Honda Toyota GM 2% 0.Automobile Manufacturers Market Share Passenger Cars 0. leading the market.

• Review of Literature 21 .

However. what would he/she be like?” we then list and group the traits to describe the brand as. age and socioeconomic class. A common way of determining this is to reply on the metaphor: “If the brand was a person. brand personality describe brands in terms of human characteristics. approachable and trustworthy. Brand personality is seen as valuable factor in increasing brand engagement and brand attachment.Brand Personality A brand is “a set of expectation and association evoked from a company or product. as well as such classic human personality is both distinctive and enduring. for example: caring. Brand personality refers to the set of human characteristics we associated with the brand. Thus. shareholders etc. there is a lot more we can do. being used to express one. employees. it includes such characteristics as gender. Based on the premise that brand can have the personalities in much the same way as humans.customers. Because many people interact with brands as though they were other people. Some would say that these brands have their own personality. in much the same way as people relate and bid to other people. Much of the work in the area of brand personality is based on translated theories of human personality and using similar measures of personality attributes and factors. that we speak of them as a part of one’s life and identity. it is important to understand what a brand personality consists of. experience what you do.” Some brands are of such great importance to people. Knowing and understanding the brand personality gives a good insight into 22 . and how its characteristics can be used to affect the relationship between the brand and its user. which can be defined as “the set of human characteristics associated with a given brand”. the brand personality. A brand is how your key constituents.

friendliness. many value/beliefs and characteristic that a person may have. but there are some that are particularly likeable. and other personality characteristics they develop. It is these likeable values and characteristics that people are inevitably attracted. trustworthiness. This is not a belief. An example of characteristic is confidence. VALUES AND CHARACTERISTICSS OF BRAND PERSONALITY People’s personalities are determined largely through the value and beliefs they have. reliability. honesty. how would you describe them?” their replies were: Company A Sophisticated Arrogant Efficient Self. and into peoples’ attitudes towards the brand. caring.this relationship. of course. There are about two hundred words that describe personality characteristics. here are the results of consumer research into how people feel about tow companies. An example of value or belief is honesty. and funloving. Examples of these include dependability. and these can be used for putting personality into brands. There are. but more of a behavior.centered Distant Disinterested Company B Easy going Modest Helpful Caring Approachable Interested 23 . Many people believe in being honest in everything they do and say. and is also as important guide to communicating the brand. To illustrate how people think in personality terms when making judgments about brands. When asked question: “if these companies are people.

the greater will be the willingness to buy the brand and deeper the brand loyalty. as did 95% of other respondents. unlike a person. If you were asked of these two companies you would like to be your fiends. A brand. brands. then the brand image of company B will be much better than company A. which suggest that there exists need by people to anthropomorphize objects in order to facilitate interaction with the nonmaterial world. e. It is not surprising that the service level of company B can be better experience for customers than that of company A. Everyone has views about themselves and how they would like to be seen by others. The Creation of Brand Personality Brand personality traits are formed and influenced by any direct or indirect contact that the consumer has with a brand. Consumers easily assign personality quality to 24 . creating brands with personalities similar to those of a certain group of consumers will be an effective strategy. Consumers accept the marketing actions to humanize brands. it is also easy to conclude that if customers consistently experience these differences between the two companies. Anthropomorphize occurs when human qualities are attributed to non human objects. cannot think. it is simply a collection of perception on the mind of the consumer. And they tend to like personalities that are similar to theirs. A brand has no objective existence at all. One explanation fort this can be found in the theories of animism. you would probably choose company B. or to those whom they admire.g.These two companies are actually competitors in a service industry. feel or act. The closer the brand personality is to the consumer personality (or one which they admire or aspire to). A further point of interest arising out of this research is that people tend to prefer brands that fit their self-concept. Thus.

Indirectly. Spokespersons that are used in advertising can have personalities that fit those of the brand they advertise. The brand-person associations can also have a more personal nature.“its price (high or low. One direct way to form and influence brand personality is user imaginary. The theories of animism describe another process mechanism that directly explains the specific ways in which the vitality of the brand can be realized (Fournier. this aspect is much less under the control of the marketers. Lehman and Singh suggest that the personality of a brand is created over time. the brand personality is created by all the elements of the marketing mix. Also. for example a close friend or a family member. symbol. Etc. retail store location (imaginary associations). packaging details (color. Betra. shape). benefits). the personalities of the spokesperson are transmitted to the brand. The personality traits that of the people associated with a brand are transferred directly to the brand. User imaginary is defined as the set of human characteristics associated with the typical or stereotype user of the brand. size. Over time. 2004). Obviously. by the entire marketing mix of the brand . sales promotion. used an all phases of the brand communication.inanimate objects like brands in thinking about the brands as if they are human characters. Brands can be associated with person who use or used that particular brand. personality traits are associated with a brand by the people associated to that brand. material.). These person associations serve to animate the brand as a vital in the minds of the consumers. In a direct way. odd or even). product formulation (ingredients. and media advertising”. Associations with the company employees or CEO and the brand’s product endorsers are also direct ways by which brand personality traits are formed and influenced. brands received as gifts can also be associated with the person from whom the gift was received. 25 . and product form (solid/liquid.

another perspective of brand personality can be examined. A further advantage of brand personality is that life is given to a brand. Thus. This is achieved with the help of the marketing actions. The process will be Define the target audience Find out what they need. One way is to match the brand personality as closely as possible to that of consumers or to the personality that they like. This form of animism involves complete anthropomorphization of the brand object itself. namely the role of a brand as relationship partner in a consumer-brand relationship.Another form of animism explains how brand personality is created in a more indirect way. especially advertising. the company has to decide what personality traits the brand is to have. Whether the brand is a product or a company. Brand personality encourages more active processing on the part of the consumer. For example. Human qualities of emotionality and thought are transferred to the brand. One of the advantage of the brand personality is that based on their distinctive personalities. consumers are able to differentiate between brands. want and like Build a consumer personality profile Create the product personality to match that profile     26 . Another advantage is that the consumer can interpret the brand’s image in such a way that it is personally more meaningful. Next we will concentrate on these consumer-brand relationships. There are various ways of creating brand personality. the brand character of M&M in the M&M commercials has the capacity to laugh and joke. By vitalizing a brand. the consumer put more efforts in creating and using the brand personality.

and can be extremely successful if a market segment has a degree of global homogeneity. who research their target audience fastidiously. This profiling approach aims to reinforce the selfconcept of the consumers and their aspirations. 27 .to their feelings and sensory function. The approach is ideal for brands that adopt a market-niche strategy. For Levis the results is a master brand personality that is: Original Masculine Sexy Youthful Rebellious Individual Free American         A related byproduct brand personality (for a specific customer group) such as Levi’s 501 jeans is: Romantic Sexually attractive Rebellious physically prowess Resourceful Independent Likes being admired       Both profile appeal mostly to the emotional side of the people’s minds. as is the case with Levis.This type of approach is favored by companies such as Levi Strauss.

Symbol – a symbol can be powerful influence on brand personality because it can be controlled and can have extremely strong associations. Apples bitten apple. and Saturn tend to have younger brand personalities than brand such as IBM.Non product related brand personalities drivers  User imaginary – user imaginary can be based on either typical users (people you see using the brand) or idealized users (as portrayed in advertising and else were). in part because the user is already a person and thus the difficulty of conceptualizing the brand personality is reduced. Sponsorship – activities such as events sponsored by the brand will influence its personality. sophisticated personality of Calvin Klein are similarly influenced by user imaginary. a brand for older people. reinforces its offbeat. User imaginary can be powerful driver of brand personality. MCI. the Marlboro cowboy. the Michelin mans all helps to create and reinforce a personality for their brands. strongly independent brand personality driven by it user imaginary.  28 . youthful personality will targeted sponsorships that have included the Freestyle Ski World Cup in Breckenridge. and it as all too common far a major dominate brand to see as strongly and old fashioned. For example Charlie has a feminine. Thus new entrants such as Apple. AT&T. for example. Swatch. the first International   Age – how long a brand has been on the market can affect its personality. The upscale personality of Mercedes and the sexy. and Chevrolets.

Why use brand personality The brand personality construct can help brand strategies by enhancing their understandings of people’s perceptions of and attitude towards the brand. By asking people to describe a brand personality. contributing to a differentiating brand identity guiding the communication effort and creating brand equality. as a part of a core or extended identity. a brand personality. Advertising agencies such as Young & Rubicam and Ogilvy & Mather routinely include a brand personality statement as a part of their brand positioning strategy. Guiding the communication effort Tactically the brand personality concept and vocabulary communication the brand identity which richness and texture to those who must implement the identity building effort. Practical decisions need to be made about not only advertising but packaging. can serve as the foundation for meaningful differentiations. 29  . promotions.   Contributing to a differentiating identity Strategically. which events to associate with. Enriching understanding The brand personality metaphor can help a manager gain an in-depth understanding of consumer perceptions and attitudes towards the brand. feelings and relationship can be identified that often provide more insight than is gained by asking about attribute perceptions. and the style of person interactions between the customer and the brand.

marketer are increasingly differentiating on the emotional pay-off a particular car model/brand provides to the customer. buy and use also provide a vehicle for self-expression. 30 . The model says that for certain groups of customers. A car. and generic benefits (such as space or fuel efficiency) of a particular car segment hardly a distinguishing factor between car models. Brand personality of cars Are you what you drive? That is what are companies seem to be asking and in the same breath trying to convince you about. the differentiation is more on the emotional pay-off. Brand that people like. “Generally. activities and lifestyles. it has been seen as one move up the value chain. Crating brand equity The brand personality creates brand equity. People express their own or idealized identity in a variety of ways. some brands become vehicles to express a part of their self-identity. This. admire. options. of course. For instance. helps build up show off. are you the Hyundai accent owner who commands immediate respect wherever she goes (including fro the potential father-in-law) or are you the suave executive from the Chevrolet ad who is ever ready to share a moment with loved one? With a plethora of new models in the market. such as a job choices. while advertising for entry level or smaller cars tends to focus more on the rational or functional benefits of the vehicles. varies from the segment to segment and also on how long a particular model has been in the market. in India. People buy car as an extension of their personality rather than just features. The self-expression model explains this. attitudes. the differentiations is increasingly on the emotional benefits when it comes to high end cars. In other words. discuss.

Skoda Auto India. The target Skoda consumer is a SEC A1. after sales.” points out dutta. He buys a car not only for himself but also for the family and tries to make up. The perception of the car in terms of its performance and design.” he says. all impact upon the purchase decision. indicating the relevance of brand among the more expensive market segments. cost of ownership. attempts to connect with its consumer on emotional level. businessman or someone in the senior management. primarily male. manger (marketing).” says Shashank vaid. apart from brand image. The advertising would also vary according to the segment which one is targeting. by indulging love ones. The importance of brand image has risen sharply in the last few years. The campaign jointly made by Skoda’s marketing department and ad agency IB&W not only communicates the quality of the brand but an appreciation for the finer things in life. The positioning goes well with the companies catch lines of “for a special journey called life”. High end car maker Skoda auto too. Surely. quality. The manufacturer need to focus more o how consumers perceive them as offering exciting cars and being committed towards them. sales. for not being able to spend enough time. For instance. the increase in importance is greater for the mid-size cars. image building does come higher in the consumer’s scheme of priorities when buying a new car than ever before. the Chevrolet Optra ad (which depicts a young husband driving his wife to see the moon on the occasion of Karvachauth) shows an Optra consumer as someone who believes in family values and indulging loves ones. “We find that typically profile of an Optra consumer is someone who is in the age group of 35-45years and has a chauffer. image-conscious and even bit a macho. through its advertising. At the segment level.social esteem value. Contemporariness of model has a big impact on purchase decision.” 31 . “Car is the extension of the personality and our advertising shows the consumer to be youthful.

“We have found that typically a buyer for a smaller car (sub Rs 4 lac) looks for aspects such as reliability and fuel efficiency. the advertising of which has evolved over the years from initially conveying mainly the functional benefits of the model to connecting with the consumer on an emotional level now. However in the small car segment. “When we launched the Santro.the josh machine made a tremendous impact on consumers in offering to satisfy a clear need. “papa ki Kara. we started with the positioning if the car being a complete family car which was completely rational positioning. A case in point is the Maruti 800 campaign in which the kids who is playing with a toy Maruti 800 exclaims to his dad (when asked how long will he keep on running the car). the rational benefits magic is not always applicable. petrol khatam hi nahin Honda. Take the case of Hyundai Santro.According to Bhatia. Interestingly. “One good example of this is Ford Ikon. 32 .” The ad cleverly conveys that the car just keeps going on and on.the product found acceptance in the market and the competition came up with similar product in the market. It ends with the voiceover telling us that Maruti Suzuki is most fuel-efficient car. it shall have the capability to break the clutter and creates a unique and compelling reason for consumers to purchase. as long as advertising for cars is strongly differentiated and sharply positions the model and at the same time satisfies a define need segment. the strategy marketer follow changes a bit when it comes to addressing the smaller car category with the rational benefits of a brand tending to be the focal point of the campaign. But then two things happened. This changes as we move up since in case the consumer has been with the category for a longer time and hence it is important t to talk of an emotional pay off. You can see some more of this with a recently launched premium hatch back as well”.

One reality for us in India is that the market is extremely price/value conscious. consumers would have to think as a bevy of new models flood the Indian market. there is rational side. and good influence premium mid-size buyers. and fuel efficiency is relatively more important to them. which does have an impact on the decision on a particular make and model of car. While making purchases based on above. Among the three. Technology.Brand image is not driven by good advertising alone but is significantly impacted upon by the cars performance and design. 33 . product quality has the highest correlation with brand image. innovation. quality. Small car buyer seeks capability in advertising. Be it rational or an emotional decision. and the cost of ownership.

in as precise terminology as possible. but efforts should be made. The research determines which of these alternative answers is correct. Research question – The research question specifies the information the decision making needs. Development of hypotheses implies generating basically alternative answers to research questions. of what information is needed. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied. It is not always possible to develop hypotheses. If the research questions are answered by the research. Research objective have three components.Objectives of Study The research objective is a statement. The responsibility of the researcher is to make the researcher question as specific and precise as possible. 34 . Development of hypothesis – A hypothesis is a possible answer to a question. then the information should aid the decision maker. The researcher question asks what specific information is required to achieve the research purpose. or answer the research problem. Scope or boundaries of the research Defining the scope of the research or the research boundaries ensures the desired precision or accuracy of the result.

The researcher’s responsibility is to restate the initial variables associated with the decision problem. that is convert the research problem. in the form of one or more key question formats• • • • • How What Where When Why 35 .

To judge the satisfaction level of car owners of different brands. employees etc. psychographic and buying characteristics of the customers in buying the car. Examine the customer perception about the cars. 36 . A brand is how key constituents.Objectives of the Research The research objectives for the project undertaken can be defined as follows: • • • • To determine the demographic variables of the customers of different brands of cars. Scope of the study It is aimed to study the car market and buying behavior of the customer. Dealer related parameters • To analyze the psychographic variables of the customers of different brand of the cars.customers. It includes the detailed study of customers focusing on the various parameters that lead to identifying and understanding the perception of the customer in buying the car brands. The project is analyzed the demographic. The research tracks responses at following two layers 1. Product related parameters 2. Significance of the study A brand is a set of expectations and associations evoked from company or product.

37 .experiences what you do. and is also an important guide to communicating the brand. and how its characteristics can be used to affect the relationship between the brands and its users. being used to express one. Knowing and understanding the brand perception gives a good insight into this relationship. Some would say that these brands have their own personality. which can be defined as the set of human characteristics associated with a given brand. a car is extension of one’s perception. This becomes significant as consumers move up the value chain from small compact cars to midsize and upwards. Some brands are of such great importance to people. that we speak of them as a part of one’s life and identity. Like apparel and lifestyles brands. it is important to understand what a brand perception consists of. the brand perception. and into peoples’ attitudes towards the brand. Because many people interact with brand as though they were other people. People buy cars which either matches their personalities or those which provide them opportunities of being perceived as somebody they aspire to be.

each representing the answer to a key question. 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. The research process provides a systematic.Research Methodology A research process consists of stages or steps that guide the project from its conception through the final analysis. R e s e a rc 38 . recommendations and ultimate actions.

INTRODUCTION
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 :
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Defining the information need Design the exploratory, descriptive and causal research.

RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis

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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.

EXPLORATORY RESEARCH
The method I used for exploratory research was Primary Data Secondary data

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PRIMARY 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

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obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is basically collected by getting questionnaire filled by the respondents.

SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. Data that have already been collected and published for another research project (other than the one at hand). There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation. Data that have already been collected for some purpose other than the current study. Researching information which has already been published. Market information compiled for purposes 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. Published, already available data that comes from pre-existing sets of information, like medical records, vital statistics, prior research studies and archival data. 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.

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DESCRIPTIVE RESEARCH STEPS in the descriptive research:  Statement of the problem  Identification of information needed to solve the problem  Selection or development of instruments for gathering the information  Identification of target population and determination of sampling Plan. that its administration would not exceed 4-5 mins. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample.  Design of procedure for information collection  Collection of information  Analysis of information  Generalizations and/or predictions DATA COLLECTION 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. written or oral. These questionnaires were personally administered. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions. 42 .

Also called the audience the audience to be served by our project includes key demographic information (i. A population to be reached through some action or intervention. Operations Management and Leadership. the required information was collected by directly interacting with these respondents. This will be either all or a subset of potential users.). It attempts to describe them as they are rather than as the describer would like them to be. professionals etc. Topic areas: Governance.e. may refer to groups with specific demographic or geographic characteristics. DETERMINATION 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. sex etc.The specific population intended as beneficiaries of a program.The first hand information was collected by making the people fill the questionnaires. places that were near to showrooms of the consumer durable products etc. The respondents were contacted at shopping malls.. such as adolescents. women. students. or the residents of a particular geographic area. Accountability and Evaluation. rural residents. business men. age. markets. The respondents consisted of house wives. The data was collected by interacting with 200 respondents who filled the questionnaires and gave me the required necessary information. The group of people you are trying to reach with a particular strategy or activity. The 43 . The primary data collected by directly interacting with the people.

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 How much money and manpower you have 44 . for which a given course of instruction is intended. the sampling frames to matches the target population. ability. and preferences. among other things. In an ideal situation.target population is the population I want to make conclusions about. A specific resource set that is the object or target of investigation. I have selected the sample trough Simple random Sampling SAMPLE SIZE: This involves figuring out how many samples one need. The audience defined in age. background.

such that each subject has the same probability of being chosen at any stage during the sampling process. The sample size is influenced by the target population. and should not be confused with Random Sampling. 45 . SAMPLING TECHNIQUE Simple random sampling technique has been used to select the sample A simple random sample is a group of subjects (a sample) chosen from a larger group (a population). This process and technique is known as Simple Random Sampling. The target population represents the Delhi regions. . Each subject from the population is chosen randomly and entirely by chance. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section. The people were from different professional backgrounds.SAMPLE SIZE I have targeted 100 people in the age group above 21 years for the purpose of the research.

46 . The attitudes the interviewer revels to the respondent during the interview can greatly affect their level of interest and willingness to answer openly. these advantages are offset by the problems of prestige seeking. 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 Respondent error 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. social desirability and courtesy biases. attitudes or facts required additionally uninformed response errors and response styles also led to survey error. as interviewers are guiding the respondent while the questionnaire is being filled out.ERRORS IN THE STUDY Interviewer error There is interviewer bias in the questionnaire method. opinion. As interviewers probing and clarifications maximize respondent understanding and yield complete answers. Questionnaire error The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated. Open-ended questions can be biased by the interviewer’s views or probing.

time and money. 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. which cannot determine the buying behavior of the total population. Research design is needed because it facilitates the smooth sailing of the various research operations. Research Design Research design is a conceptual structure within which research is conducted. A research design is the detailed blueprint used to guide a research study towards its objective. The sample has been drawn from only National Capital Region. RESEARCHD E 47 . thereby making research as efficient as possible yielding maximum information with the minimum effort.Sampling error We have taken the sample size of 100.

time and scope of the study. • The boredom and wavering concentration that set in among the respondents while answering the long questionnaire: thus in turn led to the difficulty of preventing incomplete questionnaires. Some of the problems faced in the course of the research are as follows: • A strong unwillingness on the part of the owners of various cars. The problems arise in the form of constraints by budget. So it’s always doubtful to map the qualitative aspects using a quantitative measure. • The study was limited to the geographical region of DELHI 48 . Since its not a census survey there is always a chance of error while extrapolating the results of a sample study over the population especially in those researches where the qualitative aspects are concerned. • Sampling error: the research include a sample size of 100 customers which is not enough to determine the brand perception of the consumers for buying the cars. to participate and aid the research. The current project was also faced by certain problem.Limitations of the study • All the research projects are hindered in their smooth flow by some unforeseen problems.

• Car’s Profile 49 .

Name! Name is taken from Zen. 4-cylinder.Maruti Udyog Limited Maruti Udyog Limited is the premier car company in India. The company has also ranked highest in the India Sales Satisfaction Study. 'Zen Estilo'. The company entered into collaboration with Suzuki Motor Corporation of Japan to manufacture cars. 50 . 16-valve. It seems Maruti wants to exploit Zen brand-image hence named this car after Zen. In essence it’s stylish Wagon R. Estilo has got Wagon R's engine and chassis and Suzuki MR Wagon's shape. Zen Estilo has the same engine (1061cc. 64. Absolutely nothing has been changed except for the fact that this engine is much refined and is slightly better at responsiveness and fuel economy. MPFI F10D Petrol) under the hood that is found in Maruti Wagon R. Maruti Udyog Limited. Estilo Maruti launched all new Estilo. driving in city would be more fun with Zen Estilo. the largest Car selling company in India. 1. 84Nm. It has bagged the First Position in JD Power Customer Satisfaction Index for the consecutive two years. has many unique Service advantages for the customers.8ps. Due to highly good drivability. Whatever remains is taken from Zen. Japan's MR Wagon. Maruti is the highest volume car manufacturer in Asia. Maruti Udyog Limited (MUL) was established in Feb 1981. outside Japan and Korea. If you are wondering why I dropped Zen from this car's name then let me explain. This simply translate into 'Zen Estilo is a bit faster and more fuel economic than Wagon R'. well does anything remains actually? Yes. combination of the two or anything but Zen.

for a car that has to get around a city. because the Duo is all about LPG. the Duo just wheezes at times. Wagon R Duo At first glance the Maruti WagonR Duo looks quite normal. Swift Competing with the other cars of Maruti.Electronic Power Steering (not available in LX version) really helps in crowded traffic. I really don't care. Maruti engineers have really played around with the engines tuning. And this is despite two important facts. Owning and maintaining Zen Estilo won't be a problem. 2. Well. your warranties don't get voided because of the gas fitment. first LPG has more energy than CNG (that other gas) and because this is a company designed car. you save a rupee a kilometer on LPG over Petrol. 3. The redesign of the car hasn't just meant a fresh exterior look. and that in itself is a massive statement. this is the cheapest Maruti vehicle to run. Maruti Swift has come up with the special technical specifications of 16 valve 4-cylinder. There is no denying the cars cost advantage. that is if you think the WagonR's boxy looks are normal to start to start with. Frankly. and the fact that it is first factory fitted LPG car in India. Maruti Swift is gradually making its position in the world of mid-sized family car. 1300 cc engine generating power. Factory-fitted means one major plus. engine is proven reliable and virtually maintenance-proof.rotary controls on the panel and a very neat looking display with an all new Speedo. it has also meant new interior . Maruti swift is equipped with various safety features and well advanced 51 . The problem is that despite the not insignificant cost savings. which even makes the extra Rs 24000 you have to pay for the car seem worth it.

trip meter (digital display). heater and manual Air conditioning. console box (lower). driver's seatbelt warning lamp. Maruti Baleno This mid size car with its bold and elegant looks along with its smart performance is becoming the part of the dream of many car lovers. fabric accented door trims. 12v accessory socket in center console. halogen headlamps. brake assist . striking features of this model are black colored A & B pillars. power steering. etc 4. antenna. driver's seat belt warning lamp. child lock (rear door). cup holders (front 2. front door trim pockets. 3 spoke urethane steering wheel. Colors • • • • • Pearl Silver Silky Silver Superior White Midnight Black Bean Blue 52 . front fog lamps. vanity mirrors (sun visor co-driver side). sun visors (both sides). rear fog lamps. high mounted stop lamp. OVRM (internally adjusted).equipments. wind screen wiper 2 speed plus 1 speed intermittent. tachometer. day and night rear view mirror. Apart from the features found in other model. key not removed warning buzzer. 3 assist grips. rear seat head restraints. tailgate opener key type. central door locking (4 door). rear seat belts etc. front and rear electronic windows. cabin light (3 position). green tinted glass window. manual air-conditioning. rear1). are the features available in this model. light off/ key reminder. headlamp leveling device. door ajar warming lamp.

tachometer. Maruti Esteem Sophisticated big structured Maruti Suzuki esteem is one of the old car of the Maruti Udyog group. 5. day/night inside rear view mirror. front and rear mud flaps. trip meter. MP3 music system. silver finish centre garnish. According to *Mileage (Auto India. central lock door locking. front door armrests and pockets (both sides). there are many other extra features available in this model like leather steering cover. ash tray illumination. cigarette lighter. rear door child lock. side impact beams etc. automatic climate control. There are three models of Maruti Suzuki Esteem: • • • Maruti Esteem (Lx) Maruti Esteem (Lxi) Maruti Esteem (Vxi) 53 . To run this huge car its engine is made of lightweight allaluminum. Esteem holds the topmost position on mileage among the other category of cars including the small cars. stylish alloy wheels. electric windows. "key not removed" warning buzzer. semi concealed windshield wiper (2 speed plus 2 controlled intermittent). has various effective comfort and safety features like tilt adjust power steering. electrically operated AC louver switches. velour floor carpet. remote keyless entry etc. lockable glove box. This contemporary engine has capacity of 65 bhp at 6000 rpm. Nov 2005).Along with the features present in Lxi. rear spoiler with LED stop lamp. AC illumination system.

body and paint shops.. For comfort these models specially have rear view mirror on the left side. 54 . Hyundai also has a fleet of 78 emergency road service cars that can provide emergency service to all its customers anytime. air flow controls. Air conditioned Maruti Suzuki Esteem for the comfort of the owner provides the facilities of cabin heater. front door pockets (both sides). anywhere. machinery.The basic model of Maruti Suzuki Esteem includes various safety features and unique configuration in it. Security measurement of this model has headlamp leveling device. The Company has set up more than 70 dealer workshops that are equipped with the latest technology. lockable glove box. prismatic day-night inside rear view mirror etc. remote operated fuel tank lid and trunk lid. This model is more upgraded version of Maruti Suzuki (Lx). collapsible steering column. child proof rear door locks. across the country. Hyundai Motor Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly owned subsidiary of South Korean multi national. Hyundai Motor Company. coat hanger hook on grip assistance etc. and international quality press. HMIL is the fastest growing and the second largest car manufacturer in India and presently selling 30 variants of passenger cars in six segments. thereby providing a one-stop shop for a Hyundai customer. Instrument panel of this model includes tachometer and speedometer with sporty dial. power steering and power window (front). front seat back pockets (both sides). Apart from the features that are already in MarutiSuzuki (Lx). there are other few more added features existing in Maruti Suzuki (Lxi). halogen headlamps.

passenger side OVRM. Along with the features available in Santro XK. day and night inside rear view mirror. hydraulic power steering. Euro III emission norms fulfilled Car. other features present in this model are air conditioner. Santro Xing is capturing the market very rapidly.6. front door full size arm rest. power windows (front) etc 7. chrome1 radiator grille etc. space and other special features has made it one of the highest purchasable cars among any economy class. Getz Hyundai Motors launched small family car Getz at August 2004. It has five variants: • • • • • Santro XK Santro XK (Non AC) Santro XL Santro XO Santro AT Along with the other features that are present in Santro XK (Non AC). Its design. Getz powered by 1300 cc. added features in this model are 4 doors CLS. 55 . tinted glass. door trim with fabric insert. Hyundai Santro In the field of mid size car. Only the petrol version of this car was launched initially. engine. style. map pocket front door driver side.

i. digital clock. 8. tilt steering. This model has few important features like height adjustable front seat belts. waist line molding.There are four variants found in this car: • • • Hyundai Getz GLS Hyundai Getz GLX Hyundai Getz GVS This model has highly advanced features like AC with 4 speed blower. rear wiper and washer. Initially Accent came up with the manual transmission which in turn started getting available in automatic transmission. this model is being specially equipped with rear wiper and washer. rear defogger. rear mud guard etc. ash tray w/o illumination. center console w/ pen and jug holder. alloy wheels etc. please see this following text: • • • Hyundai Accent GLE Hyundai Accent GLS Hyundai Accent Viva 56 . 60:40 rear seat split. vanity mirror passenger side. front for lamp. rear defogger. rear bumper reflectors. To know about the models of this car. body colored radiator grille. front and rear power windows. rear seat back inclination(4 position). rear bumper reflectors etc. It came in two versions. body color radiator grille. Petrol and Diesel Versions in India initially. Hyundai Accent Hyundai Accent was ceremonially launched at Frankfurt International Motors Show on 15 September. while in Europe it was introduced only with the Petrol version.e. map pockets. Few features to view comfort and safety in mind. 1999. height adjustable seat belts (front).

9. City is way ahead of Verna in interiors and room. rear license garnish. door trims and consoles. waistline molding. 'yes this car is meant for India'. tachometer. full size wheel cover etc. Verna The most awaited Verna finally launched in India. Comfort levels are quite good. Verna can be considered as one of the most shock wave-creating cars in India. Driving position is good and to make it even better. semi cloth upholstery. Car handles very well too. body colored door handles. though they don't give a cheap feeling at all. height-adjustable driver-seat is provided in higher versions. Like all other Hyundai car designs. cools the cabin quickly. Features that are striking in this models are tinted glass. Interiors are not class. Due to enough power. of speed). dual horn. Exterior design is satisfactory. automatic trunk lamps.• • Hyundai Accent Viva CRDi Hyundai Accent CRDi This model has many distinctive features like 60:40 split folding rear seats. wiper (3 no. and there is marginal refinement over Accent. power telescopic antenna. luxury full cloth upholstery. within first five days of its launch over 2000 Verna cars had been sold. AC is quite effective. no bumpy rides. energy absorbing collapsible steering column. sun visors with vanity mirror. cross bar under dash board. crumple zone. Competition seems to be in shock. Mist (one stoke wiper blades). people have started to 57 . trip odometer. as expected. bumper with or without molding. engine sub frame etc. switching on AC doesn't make any difference in performance. Its neither great to boast about nor is bad to complaint about. remote fuel cap release. I wasn't expecting them to be like this. remote boot release. split rear seats. Suspensions give you a feel. high mounted stop lamps (HMSL).

Tata Indica is ruling the market. Its manufacturing plant is located at Jamshedpur. Its name comes first in the category of commercial vehicles and the second largest in the passenger vehicles. Tata Indica V2 Having attributes of three popular cars. Making of Tata Indica with the concept of main distinguishing features of three popular 58 . Central Locking is available as standard feature in all the versions and keyless entry in petrol versions except the lowest-end Verna i. After having first glance of Verna.000 crores in 2005-06. one of Carwale. Maruti has confirmed discontinuation of Baleno and arrival of new Baleno early next year and last but not the least Chevrolet is planning diesel Aveo soon.6 TDCi (diesel) in two months time.5 million Tata vehicles is moving on Indian roads. ABS is available as optional across the range.criticize Hyundai for design of Verna. it looks like Baleno from front and Fiesta from behind!'. 'Hey. Everyday we have news about some new launch. You can't help it. Verna is just launched and Ford has just announced launch of 1. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. Over 3. it’s inevitable with Hyundai. Finally Indian automotive industry is taking good shape. It’s a bit disappointing that Airbags are not provided even as optional. We have enough options in every segment available. From Maruti to Tata to Honda to Volkswagen to BMW to Porsche. every major world car player is interested to sell its cars to Indian people. with revenues of Rs. 24. Pune and Luck now 10. Tata Motors Limited Tata Motors Limited is India's largest automobile company.com colleagues called out. mid size car and utility vehicle segments. since 1954.

interior space like ambassador and cost nearly like Maruti 800 was a challenging venture of Tata Motors. Its fully foldable rear seat has made this car more accommodating for extra luggage. rigid monochrome frame and child safety locks are attached to this car. HVAC system provides good cooling effect even in a sultry summer days. body colored bumpers. Door handles. To mention more about convenience of driving. four power windows have not only made this comfort driving car but also give assurance for the safety.. front windows are power windows. To assure safer driving along with the elegance and appeal of the car. Tata Indigo 59 . Different Tata Indica models are: • Tata Indica V2 o o o o DLX DLG DLS DLE With its market catching looks and few striking features have set a trend for the choosy buyers. To avoid the scorching heat in a summer days. this model is equipped with body colored bumpers. the wheel arch flairs. Its power steering. side-impact beams. internally adjustable OVRM and central locking system.e. ORVM and wheel arch flair are few more advantages that the owner of this car can easily avail. To avoid any inconvenience in operating the window. with the overall structure of Maruti Zen. For safe and secure driving and to give proper comfort. central locking system.cars i. HVAC system of cooling can soothe anybody inside the car 11.

manual front and rear windows. molded roof lining. grey bumpers. partial wheel covers. black door handles. partial fabric seats. child safety locks on rear doors. both sides outer rear view mirrors. anti-submarine type front seats. audio warning signal for driver seat belt and many more. It has various features like AC system. LCD screen etc has made its position in the automobile industry. roof rails. 4 spoke wheel. grey bumpers. Indigo is available in Petrol and Diesel models. partial fabric lining on seat. aluminum gear shift knob. rear fog lamps. full wheel covers. central locking. • Petrol Variants o o o Indigo GLE Indigo GLS Indigo GLX It is equipped with various features like manual power steering. there are available power steering and power windows.2 spoke wheel. rub rails on door. 60 . To mention few of the features present in this model along with the features of rest of the two models.Indigo with its market catching features like leather upholstery. half wheel covers. beige interiors. chromeplated grill lip. rear defogger. side impact beams etc This model along with the features of Indigo Marina GLE comes with various other features like HVAC system. this variant delivers maximum power of 85 PS @ 5500 rpm and maximum torque of 11kgm @ 3000 rpm. 12. internal antenna. high mounted stop lamp etc. digital clock. Indigo Marina Fully equipped with 32 bit micro processor and 1405 cc MPFI Petrol engine. collapsible steering column.

13. 24. Reliability of this car was proved by its 171 cubic inches. was the first in setting up assembly plant in India. front safety belt pretension etc really confirm the security of the passenger. stylish grip and cover for hand brake lever etc. full wheel covers. rub rails on door. high.7hp four cylinder engines. body colored bumpers.6 LT 61 .power steering. rear child safety door locks. It has four variants:• • • • Aveo 1. First office of Chevrolet was located at Mumbai and its assembly plant was in Sewree. Chevrolet Aveo provides complete statement of reliability and efficiency. height adjustable safety belt anchors. General Motors. B-pillar.4 Aveo 1. Chevrolet Its king like entry happened in India in 1928 with its National Series AB touring. Chevrolet Aveo With the assurance of safety and technologically advanced equipments.4 E* Aveo 1.4 LS Aveo 1.strength steel structure. parent company of Chevrolet. Safety features like tailor welded blanks.

mobile phone holding space in the rear door.1 kmpl inside the city crowd roads and 11.8 LT 1. 14. engine service soon indicator etc. remote trunk lid opener. engine service soon indicator etc. wide 185/60 R14 tyres. remote trunk lid opener. rear defogger with timer.4L DOHC 94 PS. two tone beige interiors. power steering and power window.6L DOHC 102 PS. two tone beige interiors. rear defogger with timer. central armrest. chrome radiator grille.2 kmpl on the highway. rear spoiler with CHMSL. pullout type door handle. flip down rear armrest. 5 Speed MT. Its luxurious and comfortable interior include center console. central locking. It has various variants: • • • • • 1. pullout type door handle. wide 185/60 R14 tyres.8 litre engine capacity runs up to 8. enough legroom space. chrome radiator grille. automatic climate control air conditioners.It is well equipped with 1. electrically adjustable OVRM. 14" alloy wheels.8 LT AT 62 . power steering and power window. are 1. It is well equipped with 1. wood finish on IP and door trim. Optra With its 1.6 Elite 1. car alarm and key less entry system. sunglass holder. 5 speed MT. 5 Speed MT.6 LS Elite 1. double DIN MP3 system with 6 speakers.6 LT Royale 1. chrome coated exterior handles and trunk lid garnish. Its main mentionable features along with the other features which are associated with the rest of the models. cup holders etc. central locking.4L DOHC 94 PS.

6 LT Royale like automatic climate control system. tilt adjustable front headrests. front fog lamps. double DIN audio system with 5 CD changer. this is available with tilt steering. silver finish on control panel and luxurious wood finish on IP and door boards etc. Along with the features present in 1. dual airbag.It is equipped with various comfort and safety features like driver seat height adjuster. 63 . plush feel beige fabric. driver seat lumbar support. remote keyless entry with chirp and trunk opening. 15" alloy wheels with ABS and EBD as option at extra cost. all round wood finish including Centre Panel. body colored outside mirrors and door handles etc. There are many extra features present in this model along with the features of 1.6 Elite. rear disc brakes. AWIS.

•FINDINGS AND ANALYSIS •Cross Tabulation 64 .

etc. status. 3. increase in disposable income seems to be the most important reason for buying a car. Similarly. add to the motives of buying a car. increasing family size. 2. the growing family needs like working partners. 25 20 65 . 4. This trend is reflected in the growth of the Per capita Disposable income and consequently the growth of the Indian automobile industry especially in the B and C segment cars. 5. Why you bought your present car? Please rank from the highest order of preference 1. Increase in disposable income Better safety at roads Family needs Increase in family size Suits your lifestyle and personality 40 35 39 30 Interpretation: As per the analysis shows.Q1.

32% of the respondents suggested that affordable prices are the most important factor while purchasing a 66 28 . You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your preference) 1.Q2. 4. 7. 2. Affordable price Technical superiority over competition Comfort Manufacturer’s image Value for money Safety After sale services Product S 10 Interpretation: Indian market is still the hard nut to crack for most of the automobile manufacturers. 3. 5. Though the Indian car industry is among the fastest growing car markets of the world still the Indian psyche is too complex for the manufacturers to understand. The most important reason for buying a car when it comes to B and C segment cars seems to be ‘value for money’. 6.

best services and best repute all bundled in one with the best deal they can strike. This explains the reason for the stagnant or sudden growth in sale of B and C segment cars just before budget and near occasions like Diwali.car. 67 . This is the reason for sticking to a particular segment till the next substantial rise in the personal disposable income. This reason is followed by ‘Value for money’ where the customers look for the best product.

Please rate your existing car in terms of understated Interior Design features on a scale of 1 to 5 where 1 2 3 4 5 Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied 1 2 3 4 5 Interior Type Seats design Leg Room Dash Board Interior Colour Music System Adjustable Front seat Headrest 100% 3 80% 3 1 3 1 1 4 tion 4 68 4 .Product Satisfaction Level Q3.

leg room. However. Seats. Similarly. Indica V2 races far ahead as far as leg room is concerned.t. armrests etc are few of the options which count for the interiors. For this reason manufacturers spend billions of dollars every year on R&D to continuously improve the interiors of their cars.Interpretation: Interiors play a very important role in deciding the sale of a car. its counterparts on the account of music system installed. 69 . As the analysis show Getz scores substantially high w. Overall. Wagon R fares badly on this front. comfortable and exotic the interiors are more are the chances of its being popular among the customers. almost all cars get a mixed response in this segment as far as the interiors are concerned. More plush. dash board.r.

Customer S 100% 3 3 3 Satisfaction level ( in %age) 80% 3 3 3 As one can see most of the respondents are quite happy with the interiors of their respective cars. These cars have more leg room. However. one striking point observed here are that almost every car fares neutral on the adjustable front seat headset. come with attached music systems (Verna fares the best among all cars on this front) combined with luxury features like TV screens. armrests at the back seat etc. 60% Interpretation: 4 4 4 3 4 4 40% 4 20% 4 0% 4 4 4 70 4 .

4 4 3 3 71 4 . Please rate your existing car in terms of understated Safety features on a scale of 1 to 5 Safety Parameters Crossbar under Dashboard Air Bags Anti Lock Breaking System Aerodynamic Shape Intensity of front lights 1 2 3 4 5 Customer 100% r Satisfaction Level ( %age) 90% 80% 70% 60% 50% 40% 30% 3 4 5 Interpretation: 3 As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every front.Q4. Most of the cars in this segment fare relatively similar and very close to each other on most of the fronts. with Indica marginally better in features like crossbars under the dashboard and Anti Brake systems.

Customer S 100% 90% 80% 3 3 4 Customer satisfaction level 70% 60% 50% 40% 30% 20% Interpretation: 3 3 3 As one can see most of the respondents are quite happy with the safety parameters of their respective cars. 4 4 4 1 1 3 4 4 72 4 . one striking point observed here are that almost every car fares neutral on the safety parameters. However.

This is the reason why this class of parameter was chosen for this study. Wagon R fares the best on the terms like mileage but it lags behind Hyundai’s Santro on pick up front. And the results show that Maruti’s Wagon R fares the best car in its segment as most fuel efficient car of all. So this segment shows a mixed bag of response for the Fuel efficiency and 3 4 4 3 73 4 . Similarly.Q5. Please rate your existing car in terms of following parameters Parameter Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed 1 2 3 4 5 Customer Sa 100% Satisfaction Level ( %age) 90% 80% 70% 60% 50% 40% 3 3 3 Interpretation: 3 The customer choice of the car highly depends upon the performance and maintenance costs of the car.

74 . Indica V2 performs consistently on all the parameters and Getz fares really well on pick up whereas it fares badly on fuel consumption.mileage parameter. Considered this condition for Getz it should be seen as a red signal for the manufacturers so that Getz does not end up being like Fiat’s Palio famous as a car for ‘drinking petrol.

Customer Satisf 100% ustomer Satisfaction Level ( in %age terms) 90% 4 80% 70% Interpretation: 4 5 Segment C cars are known as hybrid car segment between the B segments fuel efficiency with the luxury of the D class. Baleno fares a little bit behind than its counterparts as far as the stability at high speeds and mileage is concerned. Indigo fares as the best car in terms of fuel efficiency. 60% 50% 40% 3 4 4 3 30% 20% 3 3 75 3 3 4 .r. Checking the same it seems that most of the cars in this segment are placed much closed to each other with very little difference here and there.t their weights and pick ups. Most of the cars are fuel efficient w.

Dealer thus becomes the most important link in joining the company to its customers as he is the person who will sell the product. So.Dealer Service Satisfaction Level Q1. it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called car! Why Maruti fares so well ahead of its competitors till date and its the largest car company in India with the largest market share in A and B segment is 76 . will deliver it and will keep on providing the after sales services to the customers as and when required. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where 1 2 3 4 5 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 1 Distance ( Proximity) Advertisements (Promotions) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Car Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) Schemes 2 3 4 5 Dealers are the middle men between a car manufacturer and its customers.

So wherever you go its not difficult to find a Maruti service station and a Maruti dealer.because during the protected regime it build a dealers network so strong that its yet very difficult for most of the competitors to set up a network as large as Maruti. 77 . This is how Maruti has maintained relationships with its customers and has been able to convert most of them into a repeat customer. So. dealer network is something of such importance that while studying the customer’s satisfaction profile its almost impossible to ignore it.

Custom er S 100% 90% 80% 1 70% 60% 2 3 4 3 4 4 4 2 Interpretation: 50% 3 While buying a car. So dealers act as influencers on the complete 40% buying behavior of the prospective customers. extensive and well managed dealer system. stomer Satisfaction Level ( in %age terms) 30% 20% 10% 0% 5 5 4 4 78 . for B and C segment cars Maruti emerges out as the clear winner among the four car companies studied all thanks to the vast. Also. the cost of service provided by Maruti dealers is the lowest followed by Tata Motors. Similarly. Among all the listed factors Maruti 4 fares the best among all its counter parts in terms of dealer density which is quite obvious. dealers ‘choice play a very important role in deciding the 4 company and model’s choice.

How do you rate the brand image of your car? 1 Very Low 2 3 4 5 Very High 6 5 Customer Perception ( Avg) As per the analysis. This is established by the fact that Maruti’s Wagon R and Swift are exactly the same as far as the image is concerned. 4 Interpretation: 3 2 4 3 79 4 . This can be attributed to the fact that both these cars are relatively new on the block and market takes time to imbibe and give the brand an image. This is because of the reason.Q2. Santro is the car whose brand image is most preferred in the market. On the contrary Maruti Estilo and Aveo share the same platform on the brand image. that it’s from the house of Hyundai a South Korean company known for its overall image.

Custo 6 5 Customer Perception ( Avg) As the analysis reveals GM’s Optra fares as the Best Car as far as customers’ perception is concerned about the brand image of the car in the C segment. Accent and Verna both Hyundai cars share the same position. This is because of the fact that GM itself commands an amazing brand image among its customers. 4 Interpretation: 3 2 4 3 4 1 80 .

Will you recommend your car to your friends? • • Yes No Cu 80 73 70 60 Interpretation: It seems logical that satisfied customers will someday become loyal customers. scores and customer buying behavior. in other words there is a positive correlation between customer satisfaction 50 Frequency 40 30 20 81 . the car manufacturer should expect more referrals and this is reflected in the analysis that 73% customers say that they will refer their car to their friends even if they move to other segment or other brand. If a customer rates the car very high in satisfying his or her needs.Q3.

Q4. It’s the reason why brand perception is so difficult to understand. same manufacturer Upper segment. same manufacturer Same segment. different manufacturer Upper segment. And the next striking finding is that the customers will prefer both same and different manufacturers in the B segment cars and there is not much difference in the C segment also. different manufacturer 40 35 30 25 20 15 10 Interpretation: The analysis shows that most people when moving to upper segment will prefer a different manufacturer. Values 6 7 82 17 . Will you buy your new car in the • • • • Same segment . This behavior is complex to understand as this are the customers who have given whopping response for recommending their car to their friends.

The survey of 4 age groups was done.Demographics age group <21 21-35 36-55 >55 17 20 21 41 I surveyed around 100 people who belonged to various age groups. The four age groups were:  Less than 21 years  21 -35 years  36-54 years  More than 55 years 83 .

001 19 33 19 28 I surveyed around 200 people who belonged to various monthly family income groups.001 Interpretation: Above graphs exhibits the income bracket of the sample size.00.000 a month income. The four income groups were:  Less than 50000  50000 .000 50.00.1.000 >2. The survey of 4 income groups was done. as evident the majority of the sample is in the income bracket of < 50.00. this enables the study to be wide and not dependent on a set income class.000  1.001-1. Though none of the bracket is highly skewed. which was a fortunately desirable result of simple random sampling.000 1.MONTHLY FAMILY INCOME monthly fam ily incom e <50.00.001 – 2.00.001-2.000  More than 2.00.00. 84 .00.

Cross Tabulation 1. This is why Maruti is perceived as a value for money car and Getz emerges out as a winner in the B segment for this criteria. this perception may or may not result in a converted sale. financing options etc. I found that choice of car depends upon these following factors: So the choice of car is not driven only by intensive factors such as brand perception but is hugely influenced by extensive factors such as price. rt fo m Co Interpretation: an m a uf u ct r re 's im e ag les sa r fo ey on m ice rv se 85 . As Getz is from the house of Hyundai known for its technology and great design is far better perceived as a preferred car than other cars. But a word of caution here. also the choice of the car is largely influenced by the manufacture image. and models available. Motive to buy the car*segment car B and C Bar Chart 20 seg m ent C a r B E s t ilo W agon R S w if t 15 S a n tro G e tz I n d ic a V 2 Aveo t n u o C 10 E s te e m B a le n o A ccent V e rn a 5 I n d ig o M a r in e I n d ig o O p tra 0 le ab rd fo Af s ice pr r te Af c Te al ic hn r io pe Su y rit e ov rc t it pe om n io lue va ty fe Sa respondant's objective buying a car brand According to the result. service.

Recommend the car to your friend*ranking of Brand and company Bar Chart respondants' ranking of brand and company image Very Low Low 30 Neutral High Very High 40 t n u o C 20 10 0 yes no Would you recommend your car to your friends Interpretation: The graph shows that people who rank their car high or very high on the brand image are the people who recommend their car to their friend.2. This is something the car companies should look for as these people may not be the brand loyal but are definitely the people who help a company to reinforce the brand image propagated by the company. 86 .

87 . So.3. ranking of Brand and Image*Segment B and C car Bar Chart segment Car B and C Estilo Wagon R 8 Swift Santro Getz Indica V2 6 Aveo Esteem Baleno Accent 4 Verna Indigo Marine Indigo Optra 2 10 t n u o C 0 Very Low Low Neutral High Very High respondants' ranking of brand and company image Interpretation: This graph shows that how brand image is useful in making the choice of a car especially in the B and C segment. Santro is the car whose brand image is on the top and it’s the most preferred car.

•CONCLUSION •SCOPE OF FURTHER STUDIES 88 .

TQM focuses on integration and coordination as well as the continuous improvement of all activities and processes. The brand perception is dependant mostly on the peripheral cues depending upon the nature and quality of the service provided along with the pricing. maintenance. So this might be the reason that despite Verna faring so high on the performance parameters still lags on the account of converted sales. So.Conclusion To conclude. It focuses on and is concerned with all integrated internal and external activities within and between the organizations. These two terms are integrated by the manufacturers by building good quality products and building good relationship with dealers and enhancing service levels. the results show that the companies are playing on the peripheral cues to maintain their Total Relationship Management and connect to the customers both present and potential. availability of spare parts and related issues. However. 89 . Total Relationship Management (TRM) is a very recent marketing strategy and philosophy. The companies are operating in a highly aggressive and competitive global market place and this climate has led to the emphasis on quality in all aspects. a question arises here that is this the end of road for the branding of cars? Has the commoditization of cars has started and its time that manufacturers must read the writing on the wall? It seems so! It seems as an undercurrent sentiment is flowing and the perception of the customers is changing according to it. when studied from the point of view of a customer there seems to be no major difference among the car brands in a segment as far as performance is concerned.

The study shows that brand perception is something which starts building up before a car is purchased and goes on with its use and is reflected in the recommendations the customer makes to his acquaintances for the same car. will deliver it and will keep on providing the after sales services to the customers as and when required. So brand image and brand personality complement each other and the brand perception aids the building of brand image. Dealers. its seen that the customer might not be using the car still he holds the perceptions about it. So. the service provided by them and the relationship maintained by them with the customers helps the car companies to establish and reinstate the brand personality communicated by them to the customers. play a very important role in building up the brand perception of the cars. Finally the major point that emerges out of this detailed study is a caution for the car companies. Also. it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called car! Their proximity to the customers. as per the study findings. It says that there is no doubt that Indian car market may be growing with a double digit figure still the car companies have a long way to travel to convince their customers about the brand personality of their cars and how it suits the prospective buyers. Brand personality of a car is enforced by the sellers in the mindsets of the customers and the customers react to it by forming their perceptions about the car and this reflects in the overall brand image of the car. Since dealers are the connecting link between the customers and the manufacturers thus becoming the most important link in joining the company to its customers as he is the person who will sell the product. Simply because it simply is not a guarantee that how so ever good the customer might be holding the brand perception and how so ever good the brand image may be it is not a guarantee that it will convert into sale. Cars just like clothes and accessories suit the style and persona of a person and since all cars will become commodity someday the key to sell and 90 .

excel in the market will lie with a person who knows how to use the perceptions of the customers to its use and sell the cars ‘coz ultimately only that car survives which sells! 91 .

Scope of future study As the report mentions there are clue in the market that the cars are on a path of becoming commodities just like the fate awaits for any other consumer goods. So what can be the role and scope of brands and their personality in the changes scenario to establish the brand perception of any car in the mind set of a customer present or potential can be one area of study? On the close lines. another area of study can be the importance of advertisements and promotion schemes on the brand image of any car brand? Are the brands which advertise more have a positively high brand perception or it’s the sales promotion schemes which create the ripples in the mindset of the customers. 92 .

ANNEXURE • REFRENCES • QUESTIONAIRE 93 .

autocarindia.overdrive.in www.org Books consulted Building Strong Brands.com www.References: Sites Visited www.David A Aaker 94 .hyundai.co.com www.com www.siamindia.ibef.

Increase in disposable income 2. Family needs 4. Value for money 6. Manufacturer’s image 5. Affordable price 2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your preference) 1. Better safety at roads 3.Questionnaire For Customers: Q1. Why you bought your present car? Please rank from the highest order of preference 1. Suits your lifestyle and personality Q2. Increase in family size 5. Technical superiority over competition 3. Safety 7. After sale services 95 . Comfort 4.

Product Satisfaction Level Q3. Please rate your existing car in terms of following parameters 96 . Please rate your existing car in terms of understated Interior Design features on a scale of 1 to 5 where 1 2 3 4 5 Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied 1 2 3 4 5 Interior Type Seats design Leg Room Dash Board Interior Colour Music System Adjustable Front seat Headrest Q4. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5 Safety Parameters Crossbar under Dashboard Air Bags Anti Lock Breaking System Aerodynamic Shape Intensity of front lights 1 2 3 4 5 Q5.

Parameter Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed 1 2 3 4 5 97 .

Dealer Service Satisfaction Level Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where 1 2 3 4 5 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 1 Distance ( Proximity) Advertisements (Promotions) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Car Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) Schemes 2 3 4 5 Q2. Will you recommend your car to your friends? • • Yes No 98 . How do you rate the brand image of your car? 1 Very Low 2 3 4 5 Very High Q3.

will you buy your new car in the • • • • Same segment . different manufacturer Age group:   <21 36-55 21-35 >55 What is your monthly Family income? Less than 50000 Rs 50. 00.001– Rs 2. 00.000 Rs 1. different manufacturer Upper segment.000 More than Rs 2. 00.000 –Rs 1. If yes. same manufacturer Upper segment.001 Number of car’s owned: Present Car (s) owned: NAME: Phone NO: SEX: 99 . 00. same manufacturer Same segment.Q4.

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