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20 NOV 2010




Of Regional College Of Management Autonomous, Bhubaneswar Toward The Partial Fulfillment Of Requirement For The Award Of The Degree Of Master Of Business Administration.



| Gaurav Kr. Pandey



Chapter no. Page no. Chapter 1 01-06 Includes

INTRODUCTION TO THE STUDY.............................................. 02 EXECUTIVE SUMMERY............................................................ 03 INTRODUCTION TO AUTOMOBILE INDUSTORY....................... 04 Chapter 2 Includes 07-34 LITRATURE REVIEW................................................................


INTRDUCTION ABOUT VOLKSWAGEN GROUP........................ 16 DIFFERENT SUBSIDERIES OF VOLKSWAGEN.......................... 18 HISTORY OF VOLKSWAGEN GROUP........................................ 19 INTRODUCTION ABOUT BRAND VOLKSWAGEN...................... 21 HISTORY ABOUT BRAND VOLKSWAGEN................................. 22 INTRODUCTION ABOUT VOLKSWAGEN INDIA......................... 29 ABOUT THE DEALER - BHARAT MOTORS................................. 33 Chapter 3 35-70 Includes

OBJECTIVE OF STUDY............................................................. 36 RESEARCH METHODOLOGY.................................................... 37 SCOPE OF THE STUDY............................................................. 39 AREA COVERED......................................................................


ANALYSIS............................................................................ .... Chapter 4 71-78 42 Includes

CONCLUSION / FINDING.......................................................... 72 LIMITATION..................................................................... ......... 74 RECOMMENDATION.......................................................... ...... 75 QUESTIONNAIRE................................................................ ..... 77 BIBILIOGRAPHY................................................................. ...... 76






There are more than 125 Fortune 500 companies in India. India is an emerging global manufacturing hub for low cost cars. Changing demographics, rising disposable income and entry of several new players has expanded the domestic market for passenger vehicles. The industry turnover is estimated to reach a level of US $155 billion by 2016. Looking into the eastern India, Orissa has emerged as a key state with minerals and metals based metal based industry with the total Gross State Domestic Product (GSDP) about $26.6 billion in 2008-09. As an economic-centre and capital of Orissa with tremendous potential many foreign companies are trying to grasp the opportunity by placing their different product targeting different income group. This project was done to access the brand image of one of the well known German brand VOLKSWAGEN and to analyse the need of degree of brand promotion in Bhubaneswar market. With the help of questionnaire targeting all potential sector of society a survey was done to measure brand awareness and satisfaction level of customer with their present car and many more aspects.

The study was done in the Bhubaneswar market and the main objective was to access the brand image of Volkswagen and simultaneously to analyse the need of degree of brand promotion in the Bhubaneswar market. Considering this around 14 questions were asked to more than 250 respondents and out of them 162 were noted down to analyse the every aspect of consumer perception towards automobile industry and Brand Volkswagen. Through the analysis and their attitude it was found that majority of population is price sensitive (48%) and after that mileage is second most concerned factor (41%). Looking for brand recognition around 78.12% people knows about brand Volkswagen. They also feel that VW needs more brand promotion. The study was done both in service (50%) and business sector (42%) and it was found that people in service sector are more familiar with VW than business sector which are not so much potential than later. People are doubtful regarding the service of VW in future. People who are using VW cars are not properly satisfied with the mileage of the car. Looking at the brighter side 88.32% people are dissatisfied with their present car that indicates a huge market scope in this sector and 94.18% people are eager to taste the

German engineering on Indian road this shows that there is a good scope of VW in Orissa market if they overcome some of their hurdles.

c) Introduction on Indian automobile industry

The Automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009.
In 2009, India emerged as Asia's fourth largest exporter of

automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.
Following economic liberalization in India in 1991, the

Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
Several Indian automobile manufacturers such as Tata

Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February

2009, monthly sales of passenger cars in India exceeded 100,000 units. Embryonic automotive industry emerged in India in the 1940s.

Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

India has emerged as one of the world's largest manufacturers of small cars.

According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuelefficient cars has resulted in the expansion of

manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat also announced that it would source more than US$1 billion worth auto components from India.

According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of cars.
Installed capacity in different segments of the automobile industry SEGMENT COMMERCIAL VEHICLES CARS AND MULTIUTILITY VEHICLE TWO AND THREE VEHICLE INSTALLED CAPACITY 410000 1146000


Rank wise Largest Automobile Manufacturers in India by Sales

1. 2. 3. 4.

Maruti Suzuki Hyundai Tata Motors Mahindra

5. 6. 7. 8. 9. 10.

GM Chevrolet Honda HSD Ford Fiat| Fiat Motors Volkswagens




Literature review


Modern marketing is the management of the 4Ps- product, price, place, promotion. In a sense of entire marketing process has a large content of communication. For instance, the product communicates a distinctive image such as youthfulness, glamour or prestige. The brand name communicates physical and physiological attributes of the product. The package communicates to the manufacturer thinks of his convenience and the since of beauty. This price communicates the equity of the products. These are communication between buyer & seller i.e. the distribution channel. Thus each elements of the marketing mix either helps or hinders communication and ultimately the sales effort. The marketing communication or promotion mix consists of five major tools: 1. Advertising 2. Sales promotion. 3. Publicity 4. Personal selling 5. Public relation.


A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. Brands are often expressed in the form of logos, graphic representations of the brand. A company's brands and the public's awareness of them are often used as a factor in evaluating a company. Corporations sometimes hire market research firms to study public recognition of brand names as well as attitudes toward the brands.

BRAND BUILDING: The important factors that are affecting to build a brand value 1. Quality 2. Positioning 3. Repositioning 4. Communication 5. First mover advantage 6. Long term perspective 7. Internal marketing

The sevens main factors in building successful brand as illustrate in the diagram given below:

Quality: Quality is a vital ingredient of a good brand. Remember the core benefits the things consumers expect. These must be delivered well, consistently. The branded washing machine that leaks or the training shoes that often falls apart when wet will never develop brand equity. Research confirms that, statistically higher quality brands achieve a higher market share and higher profitability that their inferior competitors. Positioning:

Positioning is about the position a brand occupies in a market in the minds of consumers. Strong brand have a clear, often unique position in the target market. Positioning can be achieved through several means, including brand name, image, service standard, product guarantees, packaging and the way in which it is delivered. In facts, successful positioning usually requires a combination of these things. Repositioning: Repositioning occurs when a brand tries to change its market position to reflect a change in consumers taste. This is often required when a brand has become a tired, perhaps because its original market has matured or has gone into decline. Communications: Communications also play a key role in building a successful brand. We suggested that brand positioning is essentially about customers perceptions- with the object to build a clearly defined position in the minds of target audiences. All elements of the promotional mix need to be used to developed and sustain customers perceptions. Initially, the challenge is to build awareness, then to develop the brand personality and reinforce the perception. First-mover advantage: Business strategists often talk about first-mover advantage. In terms of brand development, by first-mover they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. There is plenty of evidence to supports this. Long-term perspective:

It leads into another factor in brand-building. This needs to invest in the brand over the long-term. Building customer awareness, communicating the brands message and creating customers loyalty takes time. This means that management must invest in a brand, perhaps at the expense of short- term profitability. Internal marketing: Finally management should ensure that the brand is marketed internally as well as externally. By this we mean that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. Think of the brand that you value in the restaurant, hotel and retail sectors. It is likely that your favorite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty. OBJECTIVE OF BRAND POSITIONING: In the below there are main objectives of brand positioning,
1. Marketing:

This is where you state what youre setting out to do. Branding is about changing minds. Marketing is about overcoming obstacles to the sell. An objective is something specific you want to accomplish. So a brand marketing objective can be thought of as how youre going to change customers minds about the obstacles that are preventing them from buying your product. Example: The brand marketing objective for the [CAMPAIGN NAME] is to prompt a change in consumer attitude/perception.
2. Promise:

Make a one-sentence promise that matters to your customer, is unique to your organization or product and above all believable. This promise should indicate what the product is and whom its for.
3. Brand Attributes:

These are wordsthink talking pointsfrom your brand promise that are leveraged in your brand-building communications.
4. Brand Category:

Your brand category helps you focus on where you are competing, and where youre not. In case you dont know your category, ask your customers. Try to dominate your category.
5. Brand Positioning:

This is a one sentence positioning statement that shows how you are different, better or more special than your competition. This is the message you plan to put into the minds of potential customers, consumers, etc. when they think of your company or products.
6. Positioning Anchors:

This is the evidence you supply to back up your promise (especially useful for development). This information is vital to your marketing efforts.
7. Advertising:

Heres where you would list all of your advertising placements. This data would include the medium, vendor, description, size, execution date, due date, number of impressions and cost. These efforts should align with both your customers and brand message.



Details how much money you are investing in this brand positioning. NEED FOR BRANDING: Separate your brand from your competitors in a unique way Relevant and motivating to your customers Prospects and channels-it gives you value and make you special. Enhance your perceived value, there by supporting premium pricing, sheltering you from low price competition. Contributing to share holder value.(Companies like Morgan Stanley look to evidence of brand strength in setting buy ratings.) Provide resilience in times of negative press. Enable you to launch new products more quickly and cost effectively. THE ADVANTAGES OF BRANDING: Every product requires having identity or naming so that it could be identified hence easy to process order. Legal protection to features Only products with unique features attract customers thats why branding facilities making customer loyal.


Introduction about Volkswagen Group

Type Aktiengesellschaft Industry Founded Headquarters Number of locations countries Area served Key people
supervisory board)

Pubic Company Automotive German Wolfsburg, Germany 61 production plants in Worldwide

Ferdinand k Piech (Chairman of the Martin Winterkorn (CEO and

Chairman management)

Product vehicle, engines Production output countries (2009) Services

Automobiles, commercial 6,054,829 units for sale in 153 financial services

Revenue Total equity Employees Divisions


177.2 billion 37.43 billion 368,500 (end 2009) Automotive









c) Different subsidiaries of Volkswagens


History of Volkswagen Group

Volkswagen (abbreviated VW, previously known as VAG) is one of the world's largest German automobile manufacturing group. Volkswagen officially ranks as the worlds 3rd largest manufacturer as measured by OICA in 2008. According to data published by all three companies, Toyota Group did lead in 2009 with 7.23 million units. General Motors ended the year in place 2 with 6.503 million units. Volkswagen was third with 6.29 million units delivered to customers. Volkswagen Group is divided into two primary divisions: the Automotive Division, and the Financial Services Division. The

Group consists of 342 Group companies, which are involved in either vehicle production or other related automotive services. Although it operates worldwide, Volkswagen Group's core market is primarily Europe. History: Volkswagen was founded on 28 May 1937 as the GesellschaftzurVorbereitung des Deutschen Volkswagens mbH ("Society for the preparation of the German People's Car", sometimes abbreviated to Gezuvor) by the Nazi Deutsche Arbeitsfront (German Labour Front).The purpose of the company was to manufacture the Volkswagen Type 1, later better known as the Volkswagen Beetle. On 16 September 1938, the company was renamed Volkswagenwerk GmbH ("Volkswagen Factory limited liability company"). After the Second World War in June 1945, Major Ivan Hirst of the British Army Royal Electrical and Mechanical Engineers (REME) took control of the bomb-shattered factory, and tried to dismantle it and ship it home. However, no British car manufacturer was interested; "the vehicle does not meet the fundamental technical requirement of a motor-car ... it is quite unattractive to the average buyer ... To build the car commercially would be a completely uneconomic enterprise In 1960, upon the floatation of part of the German federal government's stake in the company on the German stock market, its name became Volkswagenwerk Aktiengesellschaft (usually abbreviated to Volkswagenwerk AG). On 1 January 1965, Volkswagenwerk acquired Auto Union GmbH from its parent company Daimler-Benz. The new subsidiary went on to produce the first post-war Audi models, the Audi F103 series, shortly afterwards. Another German manufacturer, NSU Motorenwerke AG, was merged into Auto Union on 26 August 1969, creating a new

company, Audi NSU Auto Union AG (later renamed AUDI AG in 1985). From the late 1970s to 1992, the acronym V.A.G was used by Volkswagen AG as a brand for group-wide activities, such as distribution and leasing. Contrary to popular belief, "V.A.G" had no official meaning. On 4 July 1985, the company name was changed again - to Volkswagen Aktiengesellschaft (usually abbreviated to Volkswagen AG), to reflect the company's increasing global diversification from its headquarters and main plant, the Volkswagenwerk in Wolfsburg. In 1986, Volkswagen acquired a controlling stake in the Spanish car manufacturer SEAT, S.A. and in 1991, koda automobilov a.s. of Czechoslovakia became a wholly-owned subsidiary. Three prestige automotive marques were added to the Volkswagen portfolio in 1998: Bentley, Lamborghini and Bugatti.


Introduction about Brand Volkswagen

Public Automotive 28 May 1937 Wolfsburg, Germany Martin winterkorn:
Chairman of the

Type Industry Founded Headquarters Key people

Board of Management,

Ferdinand Piech:
Volkswagen Supervisory board

Chairman of

Product Employees Website

Cars 368,500 (2009)

f) History of Volkswagen

Volkswagen was originally founded in 1937 by the National Socialist trade union German Labour Front (Deutsche Arbeitsfront). In the early 1930s German auto industry was still largely composed of luxury models, and the average German rarely could afford something more than a motorcycle Adolf Hitler was also interested for that and declared his intentions for a state-sponsored "Volkswagen" program. Hitler

required a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). The "People's Car" would be available to citizens of the Third Reich through a savings scheme at 990 Reichsmark, about the price of a small motorcycle (an average income being around 32RM a week). Despite heavy lobbying in favour of one of the existing projects, Hitler chose to sponsor an all new, state owned factory. The engineer chosen for the task was Ferdinand Porsche. By then an already famed engineer, Porsche was the designer of the Mercedes 170H, and worked at Steyr for quite some time in the late 1920s. When he opened his own design studio he landed two separate "Auto fr Jedermann" (car for everybody) projects with NSU and Zndapp, both motorcycle manufacturers. Neither project come to fruition, stalling at prototype phase, but the basic concept remained in Porsche's mind time enough, so on 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle known today. It was one of the first to be evolved with the aid of a wind tunnel, in use in Germany since the early 1920s. The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called Wolfsburg, which had been purpose-built for the factory workers. This factory had only produced a handful of cars by the time war started in 1939. None was 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).

1945: British Army, Major Ivan Hirst, unclear future The company owes its post-war existence largely to one man, British Army officer Major Ivan Hirst, REME. In April 1945, KdFStadt, and its heavily bombed factory were captured by the Americans, and subsequently handed over to the British, within whose occupation zone the town and factory fell. The factories were placed under the control of Oldham-born Hirst. At first, the plan was to use it for military vehicle maintenance. Since it had been used for military production, and had been in Hirst's words a "political animal" rather than a commercial enterprise, the equipment was in time intended to be salvaged as war reparations. Hirst painted one of the factory's cars green and demonstrated it to British Army headquarters. Short of light transport, in September 1945 the British Army was persuaded to place a vital order for 20,000. The first few hundred cars went to personnel from the occupying forces, and to the German Post Office.

1945 to 1948 survived in allied-occupied Germany and served for British army

1948 onwards became a very important element, symbolically and economically, of West German

regeneration 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 standardise 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.

Product line expansion: Company did product line expansion from 1961 to 1973 with the introduction of several Type 3 model, Super Beetle and several engine and structural modification. In 1964 it successfully added Audi brand and developed it as luxury vehicle marque. 1974: from Beetle to Golf/Rabbit Volkswagen was in serious trouble by 1973. The Type 3 and Type 4 models had sold in much smaller numbers than the

Beetle and the NSU-based K70 also failed to woo buyers. 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. 1974 to 1990: entering the mainstream

Volkswagen Polo, 1990

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). Its chassis also spawned the Volkswagen Scirocco sport coupe, Volkswagen Jetta saloon/sedan, Volkswagen Golf Cabriolet convertible, and Volkswagen Caddy pick-up.

Volkswagen Golf 2000 model

The Volkswagen New Beetle

In 1994, Volkswagen unveiled the J Mays-designed Concept One, a "retro"-themed concept car with a resemblance to the original Beetle, based on the platform of the Polo. Due to a positive response to the concept, a production version was developed as the New Beetle, based on the Golf's larger platform. In the late 1990s Volkswagen acquired the three luxury brands Lamborghini (through Audi), Bentley and Bugatti due to Ferdinand Pich" strategy.


Different Cars of Volkswagen

Caddy Life Mk6


Eos CC




Golf Mk6

Polo Mk6

Golf Pus Scirocco

Golf Variant


Jetta Mk5




New Beetle Beetle Convertible




Introduction about Volkswagen India

With its headquarters in Pune, Maharashtra (India), the Volkswagen Group is represented by three brands in India: Volkswagen, Audi and Skoda. The Volkswagen Group is completing 10 years of its India journey which began with the entry of the Skoda brand in 2001, Audi brand and Volkswagen brand in 2007. Each brand has its own character and operates as an independent entity in the market. Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 9 brands- Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars. The product range extends from lowconsumption small cars to luxury class vehicles and trucks. The Group operates 60 production plants around the world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in vehicle-related services each working day. The highest volume brand of the Group is Volkswagen. Europes most successful car brand has made successful inroads into the Indian market. Volkswagen presents itself in a variety of segments as a premium manufacturer of high-volume models. As a first step, the Volkswagen brand launched the globally successful Passat in 2007. To expand its portfolio and cater to the mid segment, Volkswagen launched one of the brands bestselling models, the Jetta, in India in July 2008. Both the sedans are being assembled locally. The iconic New Beetle and the high-end SUV Touareg were introduced in December 2009. Also available is the high-end automobile Phaeton. From December 12, 2009 the new Pune plant has started rolling-out the hatchback version of the Volkswagen Polo.

The made-in-India Polo was presented to the general public for the very first time at the Auto Expo 2010. The launch of this premium hatchback in March, brought access to one of the Indian passenger car segments with the highest-volume unit sales.

Skoda entered the Indian market in 2001. Its plant in Aurangabad, which assembles a total of eight models including the Audi A6 and Audi A4 as well as the Volkswagen Passat and Volkswagen Jetta, has been instrumental in this achievement. For Indian customers, the name of Skoda stands for high-quality, robust yet affordable cars in the compact, lower mid-size and midsize ranges. In terms of models, the Skoda product offering in India ranges from the Fabia through the Octavia, the Laura to the Superb. Skoda lifted the veil off its international bestseller SUV Yeti for the first time in India at the Auto Expo 2010. Audi offers high-end models of interest to Indian customers. With the A8 and the Q7, the A6, the A4 and not forgetting the R8, the TT and the recently introduced Q5, Audi offers top-quality, technically brilliant cars with an exclusive flair in the relevant luxury segments. Audis positioning as a leading manufacturer of such high-class vehicles, both assembled in India and imported through Audi India, will be systematically pursued in future. At Auto Expo 2010, Audi also unveiled the Audi Sport back Concept a five-door model offering a glimpse into Audi's future design vocabulary. Recognizing the importance of an extensive dealer network towards scripting a long-term success story, the brands of the Volkswagen Group are setting up dealerships spanning the entire country with Volkswagen, Skoda and Audi having in total around 120 dealerships across the country today. They are not only laying the foundation for a substantial increase in sales but also

doing the groundwork for offering a first-class all-round service, taking customer satisfaction to the highest level. Keeping this in mind they launched their first Group Logistics Service facility recently that would help make their dealer network become more efficient and smoothen the entire process of service. In the period between January 2009 and December 2009, the three brands of the Volkswagen Group have together sold around 19,000 vehicles in India, an increase of 1.4% over 2008 in a year marked by recession in the auto industry. A crucial element of the Volkswagens strategy is to establish a long-term presence in India is the Groups production facility near Pune in the Chakan Industrial Park. The investment with a total sum of around INR 3,800 crore (580 million Euros) is the biggest investment of a German company realized in India so far. The plant, one of the most modern in the Volkswagen Group has a high level of vertical integration not least attributable to the high share of local suppliers. The recruitment is of some 2,500 employees at the end of 2010, primarily from the region itself. With the investment, the vertical integration of suppliers and the employment of people Volkswagen will thus demonstrate its commitment to the new site. Simultaneously Volkswagen contributes to a positive development of the economy of the region and of Maharashtra at the same time. The new plant was inaugurated by The Honourable Governor of Maharashtra, His Excellency Shri. S. C. Jamir, and Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for Group Production end of March 2009 and has begun building the Skoda Fabia compact car in May 2009. The launch of Polo, the hatchback car, is a visible testimony to Volkswagens vision of Mobility -

Made in India. By mid of 2010 the hatchback version will be followed by a sedan, also based on the new generation of the Polo but entirely different to the hatch. In recognition of its efforts in India, Volkswagen India won the coveted Automotive Company of the Year 2010 award at the Inaugural Golden Steering Wheel Awards India presented by the leading automotive magazine, Auto Bild India.


Bharat Motors Dealer (Eastern India)

About the dealer

J.P.DIDWANIA (Director)

Introduction BHARATS is known as an automobile business house over last 60 years in the state of Orissa. It represents companies as follows:-

Hero Honda Motors Ltd. Tata Motors Ltd. (PCBU Division) General Motors India Ashok Leyland Ltd. Bajaj Auto Ltd. (3 wheeler division) Volkswagen India As an auto dealer in the state company have branches in the following cities: Angul Bhubaneswar Balasore Berhampur Barbil

Keonjhar Rourkela Sambalpur. In the year 1992 company diversified into Transport & Logistic business and today it is one of the leading transporter in the country having many blue chip companies as its esteemed clients and have offices in all major cities in the country. In the year 2008 as a Corporate Social Responsibility (CSR) policy we initiated to impart technical education and hence Industrial Training Centre was born in the name of Bharat Industrial Training Centre. At Bharats we take pride to state that the organization is standing on a strong tradition of service to its valuable clients. The group is managed by a very committed & dedicated team of professionals.






The main objective of study was to understand the whole automobile market of Orissa and customer behaviour regarding that Objectives: a)

To know the profile of different customer group according to their sex, age, income, frequency of their uses etc To know the approximate potentiality of customer


c) To know the satisfaction level of customer with their present car d) To analyze the down market stretching strategy of Volkswagen with the introduction of Polo e) To find out the exact customer needs said during a purchase of a car

To find out the positioning effect strategy required (product attributes, benefits, beliefs and values)



This research study involves knowing the brand positioning of Mixer Grinder adopted by Bajaj Electricals Ltd. What uniqueness and special features it has got in its product which differentiated it form its competitors and also how Brand Positioning is stimulates. Process Of The Research: I have completed my project with visiting different retails outlets, dealers, distributors, and also service centre and customers in Kolkata market to analyze the how Brand positioning help to boost up their sales in comparison on their competitors. So entire project was divided into three parts: 1. Conducting market research in the various part of the city in order to get the idea about the effectiveness of Brand Positioning in bringing the customers and dealers satisfaction. 2. Retailers or dealers perception, views or satisfaction level regarding the product they are using. 3. Identification of the factor that are responsible for the dealers or consumers response towards these brand positioning. Like whether offered sales promotion, Brand loyalty,

Approaches towards the new product, Explore needs of the consumers TYPE OF STUDY: My study is an Empirical Research. Empirical research is practical or data based research. Whatever I have done relies on the experience and observations. Lastly the conclusions with which I have come up are capable of being verified. DATA SOURCES: I have collected the data from different area in the Kolkata market. Data are collected through both the primary and secondary sources. Primary data are collected from the market by circulating questionnaires to the respondent and the secondary data are collected from web sites and published material as listed in the bibliography. DATA COLLECTION METHODS: The data has been collected through a personal survey.

SAMPLING METHODS: This research is based on the non probability Quota sampling methods. Since I have selected my sample dealers or distributors according to channel wise. DATA COLLECTION INSTRUMENT: I have collected data using face to face (personal interaction) for the customers views and dealers views and Scheduling methods for analyzing the customers and dealers satisfaction and the effectiveness of the branding after sales-service. Scheduling methods are those methods in which a schedules containing relevant question are prepare and than enumerators fill the schedules and the basis of the reply given by respondent. My questionnaire consists of both open ended and close ended question.

c)Scope of the study

The study is to be carried out in capital city of Orissa i.e. Bhubaneswar.

Bhubaneswar is a cosmopolitan environment, consisting of people from different parts of Orissa.



The study was conducted in the capital of Orissa and it contains various groups of people living in the capital.

It was conducted considering all the three sectors of society i.e. business, service, and both service and business class.


Analysis 1: Identification of prospect customers:The automobile industry is experiencing a dramatic transformation that will forever alter the way both new and used vehicles are marketed and sold. As consumers change their operational structure and methods. As the automotive industry becomes increasingly sophisticated, dealers are looking outward for assistance in increasing new and used car sales, improving margins, containing costs, developing additional profit centres and designing programs that will meet consumer demands today and in the coming years. Concerning to this to differentiate user and non-user the very first question to customer was whether they own a car or not. CUSTOMER CATEGORIES CAR USER NON USER NO.OF RESPONDENT 104 58 %OF RESPONDENT 64 36


36% USER(64% ) NON USER(36% ) 64%

Implication: - The research was conducted taking all the sector of society i.e., business class, service class and those belonging to both business and service class and among them 64% belong to user group and 36% belong to non-user group, here user group means those who previously owned any car or presently using any car and non-user means those who never owned any car. Among 64% of user group and 36% of non-user group taken together, 42% were businessmen. 50% were servicemen. 8% were both to businessmen and servicemen.

Considering the income of the entire above sector, in the survey it was found that the businessmen, servicemen and both businessmen and servicemen in Bhubaneswar city have average yearly income <10 Lakh, <4 Lakh, <6 Lakh respectively.


according to this there is huge difference in income of the entire three sectors. It was also found that many of the businessmen were multicar owner so, they can be potential customer for Volkswagen premium segment car. Among the whole sample 15.43% people have more than 10 Lakh yearly incomes so, they can be potential customer for Volkswagen Jetta. Likewise 9.25% people have more than 12.5 Lakh monthly incomes so, they can be potential customer for Volkswagen Passat and Volkswagen Jetta. Similarly among whole 6%have more than 15 Lakh yearly incomes so; they can be potential customer for Volkswagen Passat and Volkswagen Beetle.

SOnly 2-3% people were those who are actually very high income group and they can be high potential group for Volkswagen SUV Touareg and Beetle. It was found that there were many people who had never owned a car and they were planning to buy a new car and in that group most of them were servicemen and also few businessmen and their first choice is Volkswagen polo. If company provide proper assistance like financial assistance they can be potential customer to the company.

Analysis 2:-Distribution of different cars in Orissa.

During the survey people were asked about their brand of car which they are using this was done for many purposes which were as follows: a) To know the customer category.

To project a particular segment of car of Volkswagen to that group of customer To know the percentage distribution of different car brand in Orissa. NO. OF RESPONSE 84 31 27 6 3 10 PERCENTAGE 52% 19% 17% 4% 2% 6%



Analysis 3:-Identification of potential customer on the basis of year/period of their car.

This analysis is done to identify the customer on the basis of period of car Used by a customer. This also helps in identify a potential customer on the basis of period of car used by the customer. This analysis was done with 104 respondents and their responses were as follows. YEAR S >1 YEAR 1-3 YEAR 3-5 YEAR <5 YEAR No of Respondents 13 49 20 22 % of respondents 12.5% 47.15% 19.23% 21.15%

Implication:-Among the entire respondent who presently own a car or previously owned a car i.e., 64% of total percentage respondent 12.5% of the people have the car of less than one year means they have recently brought a car. 47.15%of the 64% of user group has of 1-3 year old car, similarly 19.23% total user group have car of 3-5 year old and finally 21.15% of total user group have car more than 5 year old. Through this we can interpret that user group of 3-5 year and <5 year can be potential customer for the company which in total are (21.15%+19.23%) 40.38% which if proper offer like corporate discount and assistance like bank financial assistance is provided they can be converted into customer.

During the survey it was also found that there were many people who were even in 1-3 year car user group were asking for car exchange assistance to exchange their car with Volkswagen cars. So, if company provide proper assistance to them this 40.38% may increase into around 60% convertible customer group.

Analysis 4:- Identification of potential customer on the basis of preference on various factor.
There are various factors which influence a customer during a purchase of vehicle but there are 10 major factors which primarily influences a purchase i.e., price, look, brand, engine, mileage, service availability, engine capacity, interior, seating space, interior, speed, quality. Each and every customer has their different factor preference and according to that they try to figure out their choice which ultimately decides which brand, model and segment he is going to buy. This question was asked to each and every respondent and allowed to rank their preference under 10 different factors.

FACTORS RANK 1 48% PRICE LOOK BRAND ENGINE MILEAGE SERVICE AVAILABLIT Y INTERIOR SEATING SPACE SPEED QUALITY 11% 15% 2% 21% 0% 2% 2% 0% 0% 11% 7% 0% 41% 6% 9% 3% 0% 2% 5% 8% 14% 8% 35% 8% 3% 2% 6% RANK 2 21% RANK 3 6%


RANK 5 3% 9% 13% 12% 13% 13% 15% 17% 5% 11%

RANK 6 3% 7% 13% 11% 4% 10% 19% 19% 5% 9%

RANK 7 7% 18% 13% 7% 2% 5% 16% 17% 4% 11%

RANK 8 4% 12% 11% 15% 5% 7% 10% 11% 15% 10%

RANK 9 1% 11% 12% 4% 8% 2% 8% 8% 16% 30%

RANK 10 3% 8% 1% 1% 2% 3% 4% 3% 48% 16%

5% 8% 8% 24% 4% 19% 9% 13% 6% 5%

Implication: - The very first finding of this analysis was that each and every decision was influenced by respondents age, income, their occupation and their uses. Even a Customer of very high income group has their special preference ranking according to their age and their uses and findings of many cases were quite different from a general expectation.

a) Percentage of respondent who gave rank 1 to their first preference -

It was found that 48% of the respondent gave their first preference to price. 21% gave first preference to mileage. Only 15% gave first preference to brand. Most of the customers have a common view that each automobile company in itself is a big brand. Look only got 11% of the respondent first preference. Service availability which is considered to be one of the major factors got 0% first preference rather it was 3rd preference for 35% of the respondent. One thing which was found in the survey was that those people who presently own or owned Ford automobile have major concern for service availability for foreign brand service availability. Engine capacity got only 2% respondents 1st major concern whereas it 4th major concern for 24% people. Those people who owned a SUV or a MUV seemed to be more concerned for engine capacity.

Interior and seating space was most major concern for only 2% people. For that they told that as much you invest in car you will get accordingly. Speed and quality was not the first choice for any of the respondent, the major cause they gave was Indian road. b) Majority Respondent percentage for all factors in each rank.

As we have discussed earlier that each and every customer have their particular preference ranking which is influenced by various factor like age, sex, income and uses e.t.c. But with the help of data found during the survey we tried to generalise a viewpoint regarding each factor that what a majority of population think for rank 1 to rank 10 according to their preference. It was found that 48%of people think price as a first preference. This shows majority of population is price sensitive but this doesnt mean that they are not a potential customer for our

premium segment car. This can only be figured out by considering other factor. As we know that mileage in one of the major concern so do the respondents.41% of respondent kept mileage on 2nd position. Soon after price and mileage the major concern for the people in Bhubaneswar city is service availability .35% of the people think service availability at 3rd rank. Seating space is also one of the concern for the people and it is 24% people major concern at rank was found in the survey that for a mid size car length, headroom, legroom, of the car is first question during general inquire for a car. Interior, look and brand got almost equal percentage response which is 17%, 19%and 18% and got 6th,7thand 8th rank respectively. Majority of the people feel quality and speed as not a big issue for them as 30% of the people feel quality at 2nd last position and around 50% people feel speed at last position. c) Identification of premium customer on the basis of reverse ranking. This analysis is done to identify the percentage of premium customer in Bhubaneswar city with the help of reverse ranking. Customers which are more conscious for quality, speed, look, interior and give more importance/preference to these things are considered to be premium customer. They feel price, mileage as a secondary factor. So, those who ranked speed rank 10 (48%), quality rank 9 (16%) cant be premium customer rather people who placed price, mileage more than rank 8 are premium customer. In the survey it was found that only 3% people are insensitive for price and only 2% people are insensitive for mileage so, these (3%+2%) 5%-6% respondent can be

potential customer for Volkswagen Passat, Volkswagen Bettle and Volkswagen Touareg like premium segment

d) Identification of potential customer for Volkswagen mid size car.

This analysis is done to determine the potential customer for mid size car like Volkswagen polo. During the survey it was found that there were many customers which were price sensitive and many were mileage sensitive so, to determine a relation between price and mileage sensitive customer and to determine the exact percentage of potential customer it was necessary to analyse and compare the whole customer ranking. With the help of price and mileage line graph we can easily figure out how a price and mileage sensitive customer is related to each other. Their viewpoint for price and mileage were similar. This graph shows that more or less same percentage of customer at each ranking or their averages were same. Those customers who gave price and mileage more than 3rd rank cant be potential customer for mid size car which in total for price and mileage are about on average 9.63% and those who gave it up to 3rd rank are on average 65%.

So, 65% of the respondents are potential customer for Volkswagen mid car.

Analysis 5:- Identification of potential customer by identifying their satisfaction level with their present car.
Extremely Satisfaction with a particular brand creates loyalty for a particular brand and it is very difficult to get that percentage of loyal customer for a particular brand but there are many customers which are not properly satisfied with their present car so, getting that percentage of customer share is not a very difficult task. This response process was based on that. Level of satisfaction Extremely satisfied satisfied Neutral Unsatisfied Extremely unsatisfied No. of customer 17.6 122 17.6 4.3 0 % of customer 10.9 74.34 10.9 2.7 0

Implication: - Through these data we can estimate that majority of population who are satisfied with their present car includes 74.34% of total car user group and conversion of this percentage of customer group is quite difficult task. But respondent of neutral and dissatisfied category can be easily converted into customer if proper approach process is done and this category belongs to (10.9%+2.7%) 13.6% of total car user group. During the survey it was also found that there were many respondents who even satisfied with their present car are asking for exchange with a new and many were exited to try a Volkswagen car as a German engineering while many of them need financial assistance .so, those respondent can also converted into customer with some necessary effort.

But those respondents which are extremely satisfied with their present car (10.9%) are loyal for their brand and they cant be converted into Volkswagen customer.

Analysis 6: - Identification of dissatisfied customer who actually want to switch for new car if they get proper match with their preference.
During the survey every respondent gave their particular preference ranking for a new car. Many of them were satisfied, many of were neutral many of them were dissatisfied. With the help of this analysis we tried to identify that customer who actually wants to switch for a new car if they get the entire feature according to their preference ranking.



% OF CUSTOMER 88.32%




Implication: - This analysis helped us to distinguish us prospect customer on the basis of the question that whether they will switch for a new car if they get the entire feature according to their preference. The fact came that most of the customers were willing to switch for a new car if they get proper match with their preference. This show that most of the customer due to any way or the other are not satisfied with their present car which belong to 88.32% customer and they were comfortable to say that they want to switch for a new car. Whereas only 11.68% were fully satisfied with their car and they do not want to switch for a new car.

Analysis 7: -Customer those who shown interest to exchange their car with Volkswagen cars.
During the survey people were asked that if their preference matches with a Volkswagen car will they go for it and the result was that people were interested rather exited to exchange their cars with Volkswagen.


INTERE STED 88.32% 1 42



Implication: - The analysis was based to know the reliability level of Volkswagen cars in the mind of people of Orissa and this helped us to identify that whether people of Orissa rank the quality standard and all the feature of Volkswagen cars with their expectation level with their dream car. The result of this analysis was very much exciting that 88.32%really wanted to exchange their car with Volkswagen car and they were very much comfortable while saying that. This shows that their level of expectation matches with Volkswagen cars and there is very good scope of Volkswagen cars in Orissa.

Analysis 8: - Analysis for brand recognition.

This analysis is done to analyse the brand recognition of brand Volkswagen in Bhubaneswar.

This analysis was done with 162 respondents i.e. for those who are using any car and also with those who are not using any car.




UNKN OWN 21.39% 35

78.61% 127

Implication: - This analysis implies that majority of population knows about brand Volkswagen. Majority of population identifies it as German engineering which is a good symbol as a

brand image. Their familiarities was more with the service class of Bhubaneswar than business class, they shown trust with the brand and have reliability on technology part of Volkswagen. The analysis was based on the 162 sample and 127 people shown trust with the brand. Those who do not know about Volkswagen were mostly belonging to traditional business class which include very small group i.e. 35 in number only only.

Analysis 9: - Analysis on dealers performance.

Satisfaction with a car is also related with the dealers performance because a active dealer with excellent service creates a remarkable brand image for a particular car. People in Orissa have mainly cars of Maruti, Ford, Hyundai, Honda, Tata, Mahindra and their response were as follows.

Maruti Suzuki dealer Satisfie d

Ford dealer Satisfie d

Hyund ai dealer Satisfie d

Honda dealer Very much satisfie d

Tata dealer Highly dissatisfie d

Mahindra dealer Dissatisfie d

Implication: - The analysis is base on 104 car user who owns different cars. People using Honda cars were hilly satisfied with their car and they were very happy for buying another Honda car this creates a automatic pull from a brand which works in city like Bhubaneswar where there is not very much dealer for a particular brand. So here the performance of dealer also plays a major role in purchase. During the survey it was found that those people who have purchased any car from Bharat motors were highly dissatisfied with the performance of Bharat motors performance and they were reluctant to another one from Bharat motors.

They have also one doubt in the mind that if in future Volkswagen takes out their dealership from Orissa then how they will get service. Also they have one doubt that how a customer of Volkswagen dwelling in remote area of Orissa will get service, which is not a problem with other brand like Maruti and Honda.

Analysis 10: - Estimation of people who need financial assistance to purchase a new car.
This question was asked with the entire respondent to know whether they need financial assistance for the purchase of a new car, this was done to identify the potentiality of customer and also an excellent financial assistance from a dealer acts as catalyst for a purchase of a new car. The response was as follows.

Respondent Number Percentage

Direct cash 10 5.8%

Financial assistance 152 94.2%

Implication: - This analysis was based to know the financial status of people for the purchase of a new vehicle because a proper financial assistance from a dealer encourages a customer for purchase. A dealer with multi financial facility can even pushes a slight unwilling person into customer. Through this analysis we can easily figure out that majority of population want a easy financial assistance for a purchase, so to convert a common person into a customer how a financial assistance help we can access. Around 94% people need financial assistance for a new purchase and they expect from a dealer for that.

Analysis 11: - Analysis of brand promotion in Orissa.

This question was oriented to access the degree of brand promotion in Orissa. People were asked about various source of brand knowledge and their answers were not quite satisfactory.



Implication: - during the survey it was found that inspite of knowledge of brand Volkswagen people have never seen any roadside hording they rarely saw any advertisements in newspaper. This indicates that even many of the segments have been launched in India people know less about that as of the above reason.

Analysis 12: - Estimation of people who want to see the performance of Volkswagen car on Indian road.
This analysis was made to estimate the percentage of people who actually want see the performance of Volkswagen car on Indian road. This question was framed to know that whether people doubt on the performance of a German car on Indian road.







Implication: - It is good that people want to see the performance of Volkswagen car on Indian road as it is good opportunity for a car to prove its performance for which it is made. In the survey it was found that approximately 94% people want to see the performance of Volkswagen car on Indian road and rest 6% relay on the performance of Volkswagen already.

Analysis 13: -Percentage of people who want to check performance of Volkswagen as test drive on Indian road.
Many respondent during the survey said that they want to check performance of German technology and their first process was to for test drive. They rely on technology but they want to see the and compare it with other vehicle



RELY 4 2%

Implication: - The analysis implies that people are

interested for Volkswagen car and 98%people want to go for test drive. They did not doubt on performance but they want to compare its performance with other cars. Rest 2%totally rely on the performance and they will directly go for purchase in future.




b) c)







The study was done in both in the business sector and service sector of Bhubaneswar. There is very high potentiality among the business sector and they have avg. Income more than 10 Lakh, whereas the service sector even having less avg. Income (more than 4 Lakh) are potentially very sound if they are provided with proper financial assistance. Analysing the distribution of different brands in Bhubaneswar Maruti Suzuki is the market leader with 52% market share followed with Hyundai 19%. Even of waiting time of two month people are opting Maruti Suzuki due to reliability of product. Hyundai is known for value for money product. Honda with small market share of 4% has 100% satisfaction level on service. According to the preference of people approximately 50% of the people are price sensitive and only 3% of the people is insensitive of price.

Looking for the satisfaction level 88.32% people shown desire to switch for a new car if they got proper match with their preference because of any reason or the other. If we go for interest in brand Volkswagen 88.32% want to have a Volkswagen car. Looking for brand recognition approximately 80% people knows about the brand Volkswagen. Seeing the dealers performance people those who purchase car from Bharat motors they are highly dissatisfied with the dealer. 94.2% People needs financial assistance for purchase of new vehicle which shows a good market opportunity to Volkswagen. Brand Volkswagen has very poor brand promotion which must be done properly because it provides a connection to customer. People are highly inquisitive to see the performance of Volkswagen car on Indian road and their percentage is around 94.18% and among all respondents 98% want to take test drive of Volkswagen cars.



The research study suffered from following limitation: a)

The Bhubaneswar market was very vast and it was impossible to cover each and every customer with in the short duration of one and half month. Many a times insufficient customer interest leads to inaccurate data. Reactance of customer to disclose their exact information. Dynamic market also leads to inaccurate data.


c) d)

e) The sample size was only 162. f) Many of the research objectives were qualitative one such as customer satisfaction, customer behaviour which is impossible to be quantified.

j) Recommendations


Volkswagen should do first brand promotion through advertisement, offers and discounts. Dealer should perform product promotion by putting their product sample with a sales executive in malls like Forum Mart, Big bazaar, Khemjee like shops.


c) There is very bad impression of Bharats service among the previous user of Tata and AL so, the dealer should work for that to improve their image.

As people is unaware about brand Volkswagen so, Volkswagen with the help of dealer should perform brand awareness.


Company should create platform for resale of old car so that customer encourages for new purchase. Dealer should increase financial assistance with more public and private financial company.



A market survey on Volkswagen

Dear Sir/Madam, I am a Research scholar, pursuing MBA in Regional College of Management, Autonomous; Bhubaneswar. I am conducting a market survey to understand the behaviour of customers towards Car Market in Bhubaneswar, which is for educational purpose only and complete confidentiality will be maintained. It will take approximately 10 minutes to complete the questionnaire. Kindly extend your cooperation in filling up this questionnaire. It is very important for us to learn your opinions and your cooperation will be highly obliged. Gaurav Kumar Pandey 1st year MBA Regional College of Management, Autonomous, Bhubaneswar

============================================ ====================
1. Do you own a car? Yes 2. If yes, which brand and model you are using? No

3. How long have you used it? a). less than 1 year b). 1year to 3years c). 3years to 5 years than 5 years d). More

4. What makes you happy to purchase the brand and model at that time? (Rank it serially from 1 to 10) a). Price b). Look e). Seating Space f). Milage Interior g). Service Availability c). Brand h). Quality d). Engine Capacity i) Speed j).

5. Overall how much satisfied you are with your present car? a). Extremely Satisfied c). Neutral unsatisfied b). Very much satisfied d). Very much unsatisfied e). Extremely

6. If you find all these above features in a customized way, would you like to prefer to go for a new purchase? Yes No (why?...........................................................................................................) 7. If yes, which brand and model do you like to replace with? 8. Purchase detail ; (i) From where you purchased your last car : (ii)Did the dealer meet their promise : 9. How would you like to purchase your new car? a). Direct cash b). Through Easy Finance System No

10.Do you know the brand Volkswagen? Yes

11.If yes, from where you came across about Volkswagen? a). TV advertisements b). Roadside Hoardings c). Newspaper Advertisements d). Friends and Relatives e). Internet advertisements f). Any other.(Please specify..) 12.Would you like to have a demo-presentation of Volkswagen car made for Indian Roads? Yes No 13.Would you like to have a test drive on Volkswagen? Yes 14.Demographic profile : a. Name b. Age c. Income d. Occupation e. Designation : : : : : No

f. Address for Communication : (With email id & mobile no.) g. Office Address h. Signature : : (With email id & mobile no.)

Thank you for your cooperation. . . . . . . . . . . . .



Kothari,C.R., Research Methodology, India: New Age International Publishers Kotler,P., Marketing Management, India: Pearson Prentice Hall


3) WEBSITES: - 4) Magazines Overdrive Autocar India

Bharat motors sales department