The Automobile Industry” (Maruti Vs Renault

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Summary
The automobile industry wants to conduct a market research to know more about the factors that affect the choice of customers and what motivates them to purchase Maruti & Renault cars. It is very important for every marketer to know about the buying motives of the customer because it helps them to design proper policies and programs to attract customers. It helps them to determine their advertisement budget and also to plan their various sales promotions. The studying of consumer buying behavior is very important in framing price policies, product policies and distribution policies and also in sales and marketing. It is important for the marketers to understand the buying motives because it is helpful in understanding the buying motives and preferences of different customers, this enables the marketer to design the appropriate marketing strategies. It is also helps to plan and modify products according to taste and preference of customers.

Objectives
The primary objective of the research is to find out various drives that motivate customers to choose cars. The secondary objective is to know the satisfaction level of customers and to know about the overall experience of customers about their dealers and also to know which class of customers is using cars. The main objective is to study the pattern of the services & its specification values to customers.

INTRODUCTION
The Indian automotive industry, comprising automobiles and auto components, has been on a growth trajectory since the liberalisation of the economy. The industry employs about 12.5 mn people, both directly and indirectly, and contributes nearly 5% to the national GDP. The industry contributes nearly 20% to indirect taxes of the government. Due to rapid urbanisation and improvement in standard of living, along with active government support in the form of incentives and stimulus, a large number of global MNCs including Mercedes Benz, Audi, Volkswagen and Honda Motors have set up their manufacturing research and development facilities in India. Over the decades, the Indian auto components industry has transitioned from being a supplier for the global aftermarket to becoming a full-scale global Tier-I supplier to several global companies. The auto components industry has grown at double-digits in each of the past seven years ending FY11, barring FY09. It has expanded in size from US$ 8.70 bn in FY05 to US$ 26 bn in FY11. The bright long term prospects of the industry are reiterated by the fact that investments in the industry have increased from US$ 3.75 bn in FY05 to US$ 12 bn by FY11. Auto components industry: SWOT Analysis Strength Weakness Easy access to raw materials Lack of economies of scale Ability to cater to low volume Supply chain infrastructure bottlenecks Established domestic manufacturing base Low investment in research and development Low manufacturing cost Presence of a large counterfeit components market Opportunity Threat Large and growing domestic auto market Influx of spurious parts MNCs looking at low-cost outsourcing countries Cheap imports from other low-cost countries such as China, Thailand, Taiwan, etc Proximity to other growing Asian markets Slowdown in global markets

Research Methodlogy Research Design
A research design is a logical and systematic plan prepared for directing a research study. It is the program that guides the investigator in the process of collecting analyzing and interpreting observations. Here descriptive research design is used for analyzing why customers choose Honda Siel cars. It is very simple and more specific than exploratory study. The descriptive study is a fact finding investigation with adequate interpretation.

Data Collection:
Data Sources: In this stage, there is a need to gather primary as well as secondary data.

The present study has used survey method for collecting the primary data by directly interviewing the customers with questionnaire.3 million units in 2008. 00. Hyundai Motors India Ltd 6. Indian Automobile Industry includes the manufacture of trucks. A copy of the questionnaire is attached. have expanded their domestic and international operations. Mahindra & Mahindra Ltd 4.Secondary data for the study were collected from library reference. the Indian automotive industry has shown sustained growth due to increase in competition and relaxation in restrictions. Honda Siel Cars India Ltd 7. defense vehicles.Renault . In Asia India has emerged as the fourth largest exporter of automobiles during the year 2009. The customers were given multiple choices to select their particular answers. During February 2009. After the economic liberalization in India in 1991. Tool For Data Collections: A well structured postal questionnaire and focus group was used to collect the primary data from the customers. Toyota Kirloskar Motor Ltd 8. journal and magazines. behind Japan. passenger cars. The major Car manufactures are: 1. two-wheeler manufacturing and heavy vehicle manufacturing units. Secondary Data . Maruti Suzuki and Mahindra and Mahindra.Primary Data . monthly sales of passenger cars in India have grown more by one 1. South Korea and Thailand. Industry Profile India has the ninth largest automobile industry in the world with an annual production of 2. Maruti Udyog 3. buses. websites and previous studies. India's fast economic growth has further led to expansion of its domestic automobile market which attracted significant Indiaspecific investment by multinational automobile manufacturers. General Motors India Pvt Ltd 5.000 units. Many Indian automobile manufacturers such as Tata Motors. Tata Motors 2.

2007. Das Gupta Motors Maruti Udyog Limited is now Maruti Suzuki India Limited Car market leader Maruti Udyog Limited now has a new name "Maruti Suzuki India Limited". The company's Board of Directors had approved "Maruti Suzuki India Limited" as the new name. "Maruti" continues to have the predominant position. in July. in terms of awareness. The Company's shareholders approved the new name at the Annual General Meeting held on 6th September 2007. The company's new name was approved by the Registrar of Companies yesterday and comes into effect from 17th September 2007.9. trust and customer care. and features prominently on the Company's products. services and its sales and service network across the . recall. This is the name that a generation of Indians has grown up with. In the new name. This was subject to approval by the Company's shareholders. "Maruti" is one of the strongest corporate brand names in the country.Nissan India 10.

"Suzuki" in the corporate name imparts an international dimension. . while building on its recent success in Asian and African markets. Besides being the parent company. while conveying the location of the Company and its facilities. SX4 and Grand Vitara. it has recently positioned itself as a complete car maker with the success of its globally strategic models like Swift. Renault Milestones in India. "India" in the corporate name. The leader in Japan's minicar market for over three decades. Maruti is also developing capabilities to assume the role of being Suzuki¿s R & D hub for Asia outside Japan. This international dimension in the Company's name will help Maruti as it looks to expand its role in the global markets. Suzuki Motor Corporation is a leading player in the global automobile market.country. The Company is to launch a model for export to Europe in the next couple of years. also recognizes the growing importance of the country across the world.

September 2012: Renault Scala launched in New Delhi on 7th September.Jan 2012: Renault participates for the 2nd consecutive time at the New Delhi Auto Expo. Oct 2011: Renault powered RedBull takes Sebastian Vettel to victory at the inaugural Indian Grand Prix. July 2012: Renault Duster receives a phenomenal response from the Indian market. Renault introduces a feature packed Fluence Diesel variant. selling 4036 cars. Jan 2012: Renault launches the Pulse and unveils the Duster at the New Delhi Auto Expo 2012 in the presence of India’s top Media. August 2012: Renault Scala organized a media test drive at Chandigarh August 2012: Renault India records highest sales to date. Dec 2011: Based on market demand and customer feedback. April 2012: Renault launches the New Fluence E4 Diesel with the powerful dCi 110 Engine Jan 2012: Renault crosses 40 Dealerships across India and soon to hit 100 by the end of the year. July 2012: Renault Duster launched across 9 cities in India. Renault displays 11 cars at the 2012 edition. . June 2012: Successfully conducted a Media Test Drive for Renault Duster at Munnar. Oct 2011: .

Oct 2011: Fluence Special Festive Edition launched across the country.Renault Pulse unveiled at the 2011 Indian Grand Prix by Formula1 drivers Mark Webber and Karun Chandok. Mar 2010: Inauguration of the Renault-Nissan Alliance manufacturing facility in Chennai (investment of Rs. 4500 crores with a capacity to produce 400. Jan 2010: Renault participates in the New Delhi AUTOEXPO 2010 exhibition. May 2009: Inauguration of the Renault Nissan Technology and Business Centre in Chennai.000 car.000 cars per year). Oct 2011: Renault India takes the Lotus Renault GP Formula1 car along with the Fluence Black Edition across the country. in the presence of Renault COO Mr. Sep 2011: Koleos registers 120+ bookings in launch month (the only SUV in the segment to do so). Marc Nassif. displaying a range of cars from its global portfolio announces plans to introduce a full range of cars from its global portfolio in the Indian market. Carlos Tavares and Renault India MD Mr. Sep 2011: All New Koleos Global Launch in India on 8th Sept Jun 2011: Renault – Nissan Alliance manufacturing facility rolls out its 100. . Feb 2010: Renault announces the consolidation of its presence in the Indian market (ends JV with Mahindra's) with plans to open a nation-wide network of Renault branded dealerships and the launch of a range of cars from mid-2011. the Fluence. May 2011: Renault launches its first car in India.

a JV with the Mahindra & Mahindra group (currently the Logan is being manufactured by M&M under a special licensing agreement). It is one of the 5 satellite global design studios for Renault. Jun 2008: Establishment of the Integrated Logistics Network. Oct 2005: Renault India registered in Mumbai.Sep 2008: The Renault DeSign Studio opened in Mumbai. May 2007: Launch of the Logan. . to facilitate the export of automobile components to Renault plants around the world. through Mahindra Renault.

You generally will not consider other options until some event happens such as potential big expenses for repairing. temperature and humidity. etc. etc Internal: Lifestyle. .Conceptual Framework Introduction: Consumer Buying Behavior And Buying Motives: Consumer or buyer is the centre figure of all marketing activities. prosperity and existence of a business enterprise. but you have been very happy with the services of the local dealership and decide to again purchase your next car there. cultural. • • • • • Need recognition Information search Evaluation of alternatives Purchase decision Post purchase behavior Influences on the generic model: External: Group . The following generic model of consumer decision making appears to hold. Over the next five years the car has several breakdowns that lead you to want to purchase a different brand. It also helps him to plan suitable marketing strategies. personality. After going to several dealerships and test driving many cars you finally zero down on a particular model.g. Hence the marketer should always feel the pulse of customers.e. It is the consumer who determines the growth. After purchasing the new car you have doubts if you can afford the monthly installments and if instead you should have bought a more expensive but potentially reliable model. the marketer needs to fully the working of buyers mind.g. In order to understand the pulse of the customer. Consumer Behavior: Consider the purchase of an automobile. family. time of day. decision making process. motivation. reference group influences Environmental/ Situational .e. It helps him to plan his production and distribution to suit to the needs and convenience of customers. Once this happens now you are in the market and you begin to ask your friends and relatives for recommendations regarding dealerships and car models.

ii) Selective Product Motives: These motives determine which particular brand or item will be purchased from the general class. When a motive makes a person to buy a product. i. thirst and sleep. Following are the key patronage motives. manifest motives and latent motives. These explain why people buy a certain product. induce action or determine choice in the purchase of goods and services”. Product are of two types: i) Primary Product Motives: These motives induce a consumer to purchase general class of the product. Thus buying motive means the influence and considerations which makes a customer to buy a particular product. Location iii. But on the other hand latent motives are either known to the customer. then it becomes a buying motive. These motives to relate to the basic needs of people like hunger. Price ii. Manifest motives are those motives which are know to the customer and also ready to admit them. “buying motives are those influences or considerations which provide the impulse to buy. b) Patronage Motives: These are the motives which determine where or from whom products are purchased. Buying motives can also be calculated as follows: a) Product and Patronage motives b) Emotional and rational motives c) Inherent and learned motives Product and Patronage Motives a) Product Motives: it refers to those influences and reasons which make the consumer to buy a certain product in preference to another. Variety . According to D.Buying Motives: Motive is a strong feeling.J. Quality iv. These are the considerations which induce a buyer to buy goods from specific stores. instinct. Buying motives are mainly motives two types. desire or emotion that makes a person to do something. Duncan.

hunger. social acceptance. as when an automobile needs warranty maintenance. sex. efficiency etc. durability. If he believes he received less in exchange what was paid.e. b) Rational Motives: These are the motives where a consumer takes the decision of purchasing the product by his head and means i. relatives and acquaintances. They are most likely to be unhappy or even abusive when the product requires post sale servicing. b) Learned Motives: These are the motives which are acquired or learned by a consumer from the environment and education. Thus emotional motives are physiological needs and physiological needs such as thirst. Services vi. the buyer will likely feel either satisfied or dissatisfied. dependability.Purchase Consumer behavior: Satisfaction: After the sale. In making rational purchases. It is very common for people to experience some anxiety after the purchase of a product that is very expensive or that will require a long term commitment. the consumer considers price. Rational Motives are the following types: i. Post. attraction etc. Monetary Gain ii. he might feel satisfied. fear. Cognitive dissonance: It has to do with the doubt that a person has about the wisdom of a recent purchase. religious belief. after careful considerations and logical thinking. Dissatisfied buyers are not likely to return as customers and are not likely to send friends. Efficiency in operation iii. then he might be dissatisfied. security etc. If the buyer believes that he received more in the exchange that what was paid. Focus Group . Dependability motive Inherent and Learned Motives: a) Inherent Motives: These are the motives for the satisfaction of which a consumer his best efforts and if these motives are not satisfied he feels mental tension.v. Personality of the owner or salesman Emotional or Rational Motives a) Emotional Motives: These are the motives which are affected by the feeling of the heart. These motives are social status.

Secure all required materials. and put out refreshments. time. motivate new ideas exploratory research Basic Steps For Conducting Focus Groups: • • • • • • • • • • • • • Enlarge questions and probes. Conduct focus groups according to plan. and customer lists to situate the mainly helpful participants or consultants. Protected sites for focus group interviews. Send participants a reminder letter. and it takes at least three groups to get balanced results. and issue any participation incentives. Identify and engage moderators and observers. Three actual marketing applications illustrate the usefulness of this approach for marketing mix problems. In focus groups. topic and schedule of the focus group earlier to contacting prospective participants. Effective focus groups generally consist of six to twelve participants in order to get a variety of opinions but to keep the group from being too busy and unmanageable. a moderator uses a scripted series of questions or topics to lead a discussion among a group of people. usually at facilities with videotaping equipment and an observation room with oneway mirrors. set up the room. How To Plan And Prepare Of Focus Groups: Determine the location. A neutral location is normally selected for these sessions. Educate moderators and observers. Focus group is also called as group discussion or group interview we could say that interaction between the one or more respondent and one or more researchers for collecting the research data (Focus Groups) Focus group is generally talks about the • • • How group of people talks about their interest. Verify the audio or video system. A focus group usually lasts one to two hours. Make script. Consult with your supervisor. Estimate data across groups. Enter before time. . length. or give them a reminder phone call.The focus group interview is an effective qualitative technique in marketing research. the company's sales and marketing departments. Thank the participants. Note down field notes.

How To Report The Focus Group: The report letter is a brief review of key findings that usually is one or two pages in length. or loaded questions. willingness to provide input in a group and so on. Focus Groups For This Research: We will invite group of 8 to 10 owners of cars at the research agencies facilities. The research will be conducted with the help of pictures. Sample questionnaire for Focus Group: 1. In a number of cases. Steps For Running A Focus Group: • • • • • Arrangement the sessions. yes or no. this report is used in performance with a longer description report that may reference this document. Why you choose this car brand? 2. The focus group will be conducted by an industry expert from the automobile industry and will be for 2hours. This report is generally written by the sponsor. knowledge of the product/service. Plan to tape-record or videotape the focus group. and sent to people who participated in the sequence of focus groups. As in One-to-one interview. The information in the message is personalized to an exacting audience. arrange these questions in front of time. and more than one memo may be arranged from the same report.g. Invite 8 to 10 consumers to participate in each focus group meeting. education. Determine the exact questions you will need to ask the focus group. Place maximum of two hours.g. with help from the analyst. The reason is to declare participants that they were heard by importance of the key result and the reaction by the sponsor. occupation. every one emphasizing items of concern for a particular group. you will not be able to take valuable notes while leading a focus group. Determine the information necessary the categories of people and the timing. location. avoiding vague. e. and other organizational details. Why you selected particular car model? . This report regularly goes outside the findings to identify recommendations or suggestions for action. and to bring in a co-leader or moderator to take notes.Group potential participants for appropriateness. location. We have chosen participants from different backgrounds e. Hold the meeting in a satisfying and comfortable location. questionnaires and interviews. Start with introductions and summary of the principle of the meeting. Unlike a one-on-one interview. gender. Choose a knowledgeable facilitator to supervise on the information provided by the participants..

Are you able to operate all additional features in the car easily? 5. One of the most reliable methods of research is postal questionnaire because it is very easy for researcher to standardize and analyze the questions. Were you satisfied with the pre-sales information and services provided by the dealer? 4. . How you feel about the overall performance of the car? 6. And secondly respondent could asked to complete question with research present is called as structured interview (Sociological Research Skills). I am using close ended questioner. first were respondent could asked to complete the question with researcher not present these types of questionnaire is called as postal questionnaire. there are two types of questionnaire. It is very easy to analyze the intentions of respondent (Sociological Research Skills). Each respondent answered exactly same question.3. Questionnaires are restricted two types: Close ended: in this type researcher provides a list of suitable response (Sociological Research Skills). Open ended: in this type researcher not provide any suitable list of response to the respondents. in this type there is no misinterpretation of answer because respondent are restricted to give answer. Are you satisfied with the after sales services provided by the company? Postal Ouestionaire Questionnaire is a list of written questions. respondent asked to write the answer in their own way (Sociological Skills Research) For this project We are using postal questionnaire because We would be able to cover a wider area of the location and also time.

Postal Questionnaire : Name : Company : Designation : Qus 1: How Many Services Stations are there in Mumbai region ? Qus 2: When was this branch formed ? Qus 3: How many level are Operational in this branch ? .

Qus 4:Total number of employees employed ? Qus 5:What is the employee generation scheme ? Qus 6:Total number of customer in a day ? Qus 7:Vehicles that are being repaired in a day? Qus 8:What Schemes do you have for members ? Qus 9: How to you communicate with customers/employees ? Qus 10:What are safety features in your service center ? Qus 11 :Services are available in the service center ? Qus 12:Operational Strategies followed by the center to attract more customers ? Qus13: How the quality of services maintained ? Qus 14: What are the value service that are being offered ? Suggestions if any .

Conclusion The research entitled the study of why consumers choose cars and their buying motives.Thank you for the cooperation.Renault is French based company with great excellence in service & sales . Maruti is a Indian based organization producing all level of vehicle. undertaken by automobile industry. would help the dealer to know about the preferences and motivation for customers to buy cars and service issues.

Tata McGraw .in/ .Philip Kotler.co. Ninth Edition.renault.marutisuzuki.References Consumer Behavior .Hawkins. Prentice Hall India Consumer Behavior . Best and Coney.com/ http://www. Tenth Edition.Hill http://www.Leon G. Eight Edition. Pearson Education Marketing Management .Schiffman and Leslazar Kanuk.

Annexure Postal Questionnaire : Name : Company : Designation : .

Qus 1: How Many Services Stations are there in Mumbai region ? Qus 2: When was this branch formed ? Qus 3: How many level are Operational in this branch ? Qus 4:Total number of employees employed ? Qus 5:What is the employee generation scheme ? Qus 6:Total number of customer in a day ? Qus 7:Vehicles that are being repaired in a day? Qus 8:What Schemes do you have for members ? Qus 9: How to you communicate with customers/employees ? Qus 10:What are safety features in your service center ? .

Qus 11 :Services are available in the service center ? Qus 12:Operational Strategies followed by the center to attract more customers ? Qus13: How the quality of services maintained ? Qus 14: What are the value service that are being offered ? Suggestions if any Thank you for the cooperation. .

Postal Questionnaire : Name : Company : Designation : Qus 1: How Many Services Stations are there in Mumbai region ? Qus 2: When was this branch formed ? Qus 3: How many level are Operational in this branch ? .

Qus 4:Total number of employees employed ? Qus 5:What is the employee generation scheme ? Qus 6:Total number of customer in a day ? Qus 7:Vehicles that are being repaired in a day? Qus 8:What Schemes do you have for members ? Qus 9: How to you communicate with customers/employees ? Qus 10:What are safety features in your service center ? Qus 11 :Services are available in the service center ? Qus 12:Operational Strategies followed by the center to attract more customers ? Qus13: How the quality of services maintained ? Qus 14: What are the value service that are being offered ? .

Sai Service Center (Maruti Suzuki ) .Suggestions if any Thank you for the cooperation.

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Renault Pune (Shivaji nagar) .

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