PROJECT REPORT

STUDY OF BUYING CRITERIA OF CONSUMER REGARDING CARS WITH SPECIAL EMPHASIZES ON CHEVROLET

SUBMITED BY INDERBIR SINGH ROLL NO. 80802317097

In partial fulfillment for the award of the degree of criteria

MASTERS IN BUSINESS ADMINISTRATION

RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECHNAOLOGY

PUNJAB TECHNICAL UNIVERSITY, JALHANDAR
2008-2010

PREFACE
Learning is a continuous process but this can be accomplished through practical knowledge The MBA curriculum is so designed that student get enough practical knowledge of business world which helps them to explore their skills in the corporate world in future. The MBA training helps the students to understand and gain knowledge about the industry and market environment. It develops skills of analyzing and interpreting problems through application of concepts and techniques of management. Trainee did a project for automobile industry in India with special emphasizes on Chevrolet in PADAM MOTORS Ludhiana.

(INDERBIR SINGH)

ACKNOWLEDGEMENT
³Above all I render my gratitude from core of my heart to the Almighty God who bestowed confidence, ability, strength and motivation in me to complete this project.´ No one can ever make any achievement all of his alone. It is always difficult to acknowledge so precious a debt as that of learning. It is the debt that could only be paid through gratitude. I bow with gratitude to all the teachers who guided me. I am deeply indebted to Mr. Ravi Verma (General Sales Manager) for giving me the opportunity to undergo my project in their esteemed organization (PADAM MOTOR, LUDHIANA) and firms in Ludhiana and collected information of the project. I have also done promotional activities under the constant guidance of my project guide. and the their timely suggestions & Valuable guidance. I also want to give thanks to Mr. Rohit Sharma (Sr. Sales Manager), Mr.Sanjay Mahajan (Sales Manager) and Mr. Pankaj Sharma (Assistance Sales Manager). They constantly encouraged me and showed the right path from day first till the completion of my project. I owe my thanks to all the staff members of PADAM MOTOR.I had visited many companies In the last but not the least I owe my profound thanks to Mr.Baljinder Sori (Placement Officer), who had given me the golden opportunity to do my summer training at PADAM MOTOR, Ludhiana. I have received from them towards fruitful and timely completion of this work. I owe my profound thanks to my parents, which continues to support me and build confidence and motivation in me. However I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. INDERBIR SINGH

DECLARATION

I, Mr. INDERBIR SINGH, a student of RIMT- Institute Management and Computer Technology, Mandi Gobindgarh, here by declare that this project is the record of authentic work carried out by me during the academic year 2008-2010 and has not been submitted to any other university or Institute towards the award of any degree. An attempt has been made by me to provide all relevant and important details regarding the topic to support the theoretical edifice with concrete research evidence. This will be helpful to clean the fog surrounding the various aspect of the topic. I hope that this project will be beneficial for the Organization.

Place:

(INDERBIR SINGH) RIMT-IMCT

Date:

4. EXCUTIVE SUMMARY i 1. INTRODUCTION 1-20 1. 3. TITLE PAGE NO.TABLE OF CONTENTS CHAPTER NO.2 SWOT Analysis 1.3 About the topic 2. DATA BASE AND RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS . SUGGESTIONS AND LIMITATIONS BIBLIOGRAPHY ANNEXURE 32-45 46-49 50 21-25 .1 About the company 1.

Sales.EXECUTIVE SUMMARY The basic purpose of the department is to interact with different people to provide awareness to them toward the cars i.e. I also have visited many companies and firms in Ludhiana for corporate sales. insurance etc. After observing above we can state that i have work in sales department. I interact with people in showroom for the sale of the cars.it do many kinds of events like road shows . Department also do many promotional activities of to aware the customer . In Padam motors first of all I have studied the features of cars then after few 2-3 weeks I have go to market and organizing events. organizing events at public places . Sale product to common man and the other is corporate sale i.department also provide many offers to customer like help in providing loans . Sales the cars in different companies in bulk.e. .e. Sales department in Padam motors is divided in two parts on is general sale i.

3 About the topic .CHAPTER I INTRODUCTION 1.1 About the company 1.2 SWOT Analysis 1.

GMC. the United Kingdom. Sold 9. GM's largest national market is the United States. GM's largest national market is US followed by China. SOME FACTS ABOUT GM: y y Employees more than 244. followed by China. engaged in socially responsible operations. Chevrolet Daewoo.1. Manufacturing facilities in 35 countries and sells its product in approximately in 200 countries. Germany.500 across the world .1 INTRODUCTION TO COMPANY General motor Company (NYSE: GM) is an American multinational company and the world's second largest automaker. Russia and Germany. Cadillac. G. . Brazil. security and information services. General Motor Company Ltd. It is dedicated to provide products and services of such quality that its customers will receive superior value while our employees and business partners will share in our success and their stock-holders will receive a sustained superior return on their investment. y y y Global industry sale leader for 77 years. Holden to each niche of segment. offers six brands namely Buick. Brazil. UK.7 million cars & trucks in years 2007. Canada. Canada.M. It is based on worldwide vehicle sales. GM's On Star subsidiary is the industry leader in vehicle safety.

Michigan Area served: Key people:  President and CEO -. COMPANY PROFILE Type Founded: Founder: Headquarters: Public (NYSE:GM) September 16. Stephens  GM executive Vice President and Chief financial officer-.Ray Young Industry: Products: Employees: Dealership: Subsidiaries: Website: Automotive Automotive goods and services More than 317. Henderson  GM vice chairman.000 across the world 3.gm.Thomas G. 1908 ''William Billy Crapo Durant'' Renaissance center in Detroit.600 Automotive components holdings www. Global Product Development-.Frederick A.com Worldwide .

US 18-Mar-1947 New York City Unspecified Male White Straight Businessman. Durant Born Birthplace Died Location of death Cause of death Gender Race or Ethnicity Sexual orientation Occupation Nationality 8-Dec-1861 Boston. Industrialist United States . FOUNDER OF GENERAL MOTORS William Crapo. Massachusette.

worldwide. is a multinational corporation engaged in socially responsible operations. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment. We will earn our customers¶ enthusiasm through continuous improvement driven by the integrity. and innovation of GM people." VISION STATEMENT: "GM¶s vision is to be the world leader in transportation products and related services.M." .MISSION AND VISION STATEMENTS: MISSION STATEMENT: "G. teamwork.

one nominated by the governments of Canada and Ontario and one by the United Auto Workers' Retiree Medical Benefits Trust. 2009  Erroll B. Of those. 2009  Philip A.S. 2009  Kathryn V. Davis. Marinello Director since July 10. Stephenson Dean. Russo Director since July 24. 2009  Patricia F. 2009  Stephen J. one is GM President and CEO Fritz Henderson. 2009  Carol M. 2009  Kent Kresa Director since July 10. Akerson Director since July 24. The others were all nominated by the current owners of the New GM: 10 nominated by the U. These are:  Frederick A. Director since July 10. . Henderson President and Chief Executive Officer  Daniel F. Jr. 2009  David Bonderman Director since July24. BOARD OF DIRECTORS OF GM: The board is now composed of 13 members. Laskawy Director since July 10. Treasury. Girsky Director since July 10.

with the cars first major styling change in 15 years. CHEVROLET Louis Chevrolet was a race-car driver and car designer. As head of Buick Motor Company.  In 1911 Chevrolet motor company of Michigan is in corporate in November by Louis Chevrolet and William Durant.  In 1924 GM starts building Chevrolets for sales in European countries.  Chevrolet Corvette celebrates its 50¶th aniversary. . China¶s premier auto show. It is the first production car with plastic body. Louis Chevrolet has been forced out of GM in 1910.  In 1918 Chevrolet joins general motors¶ corporation. prior to founding GM. He wanted to use Chevrolet's designs to rebuild his own reputation. Durant had hired Chevrolet to drive Buicks in promotional races.  In 2006 all new Chevrolet Captiva SUV makes its world-widedebut at Geneva Motor show. trucks and buses  In 1953 Chevrolet introduced world s first volume production sports car Chevrolet Corvette.  In 2005 all new Chevrolet Aveo sedan makes its world-wide debut at Auto Shanghai.  In 1984 Chevrolet corvette is introduced .  In 1928 GM India started in India by assembling Cheverlert cars.

 GENERAL MOTORS INDIA GENERAL MOTORS came in India in 1928 with its brand Chevrolet.K. Bangalore. . trucks and buses. (GM India) is a wholly-owned subsidiary of General Motors Corporation that is engaged in the automobile business in India. The Indian venture eventually shut down in 1954 GM¶s 2nd coming in India: 1994: General Motors India incorporated a 50-50 joint venture company with the C. General Motors India Private Ltd. GM India continued to produce Opel cars at the Halol. Birla Group of companies to produce and sell Opel branded Vehicles 1999: General Motors India became a full subsidiary of GM. 2003: After 40 years in July 2003 Chevrolet brand of GM made its return to India with Chevrolet Optra. 1st footprints in India: 1928: GM India started in India by assembling Chevrolet cars. GM bought out the Hindustan Motors interest in 1999. General Motor were the fist automobile company to open an assembly plant in India.

Maharashtra.in Gujarat y y y y New GM India Plant is coming up at Talegaon . Today General Motor India offers its one brand in India namely Chevrolet whose following cars are in market. with network still being expanded. 45 kilometers northwest of Vadodara . Haryana It has a large technical center in Bangalore Presently there are more than 100 dealership with 195 sale point and 198 service outlets. Its headquarters operation in Gurgaon. CHEVEROLET SPARK CHEVROLET AVEO U-VA CHEVROLET AVEO CHEVROLET TAVERA CHEVROLET SRV CHEVROLET OPTRA MAGNUM CHEVROLET CAPTIVA . y Chevrolet has also tied up with Bharat petroleum corporation (BPCL) to establish authorized service centers at select BPCL workshops called ³V-CARE¶¶ and is rapidly expanding this parallel service centre.GM Today: y GM India Plant is located at Halol.

Less sale point and service outlet in India. 2. To acquire the rival firm. 1. Effect on image due to bankruptcy. Chevrolet can make two wheelers as increase in demand of bikes.2 SWOT Analysis of Chevrolet: Strengths 1. New technology used by rivals eg. Efficient Human Resources weakness 1. Fuel inefficient cars. Technology 2. 1. 2. Opportunities Threats . Toyota 4. Less diesel version cars. Goodwill 3. Increase in competion. 3. 3. 2. Lack of proper distribution system. more demand for fuel efficient cars. Eg. Enter either in new product line or in new business. 3. 4. Change in customer need and taste eg. Demand for more cars.1.

1.3 INTRODUCTION TO TOPIC: .

2 TARGET POPULATION 2.4 SAMPLING TECHNIQUES 2.5 SCOPE OF STUDY 2.3 SAMPLE SIZE 2.CHAPTER II RESERCH METHOLOGY OBJECTIVES OF STUDY INTRODUCTION TO RM 2.1 RESEACH DESIGN 2.6 DATA COLLECTION METHOD .

4. 3. To know the market share of Chevrolet Cars. To know the effective factors for preferring 4 wheelers (CARS). To know the factor of awareness of the cars.OBJECTIVES OF STUDY: 1. To know value of brand ambassador of cars. . 2.

refine & evaluate marketing action. customers & public t the marketer through information which is used to identify & define marketing opportunities & problems. generate. It has following steps: I: II: III: IV: V: VI: PROBLEM DEFINITION DEVELOPMENT OF AN APPROACH TO THE PROBLEM RESEARCH DESIGN FORMULATION FIELDWORK OR DATA COLLECTION DATA PREPARATION AND ANALYSIS REPORT PREPRATION AND PRESENTATION . monitor marketing performances & improve understanding of marketing as a process.INTRODUCTION TO RM Marketing research is the function which likes the consumers.

This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. CONCLUSIVE RESEARCH: Conclusive research provides information that helps the executive so that he can make a rational decision. Research design broadly classified into two parts :  Exploratory Research  Conclusive Research EXPLORATORY RESEARCH: Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory.1 RESEACH DESIGN: It is framework or blueprint for conducting the market research project. All marketing research projects start with it. It specifies the details of procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. Hypothesis is tentative answer to the question that serves as guide for most of the research projects It seeks to discover new relationships.2. . This study has done well while attempting to arrive at a more clear description of an apparent problem. The major emphasis is on the discovery of ideas & insight.

parents. friends etc.2.} 2. In this project researcher choose the customer in Padam motors as elements.3 SAMPLE SIZE: Sample size refers to the number of elements to be used in a study. In this research the sampling units are the persons that comes with customer {wife. In this research I have take the sample size of 80 Customer that comes in Padam Motors Ludhiana . children. SAMPLING UNIT: The basic unit containing the elements of the population to be sampled . Target population should be defined in term of Element and Sampling unit.2 TARGET POPULATION: The collection of elements or object that possess the information sought by the researcher and about which inference are to be made. ELEMENT: Object that possess the information sought by the researcher and about which inferences are to be made.

Ludhiana).5 SCOPE OF STUDY: The scope of the study will be useful in future. 2. Through this study we will find out the factors of awareness of cars. etc. close at hand. I have come in contact with peoples in retail outlet of Chevrolet (Padam Motors.random sampling techniques in which I have choose convenience sampling technique because it is least expensive and least time consuming of all sampling techniques. The researcher selects units that are convenient. Convenience sample: It is also known as "accidental" sample or "man-in-thestreet" samples. Through this study we can know what is the market share of GM and what are the factors that influence the customer for purchasing four wheelers (cars).4 SAMPLING TECHNIQUES: Sampling Techniques are of two types: a) Non probability (non random) b) Probability sampling (random sampling) The sampling technique used in this research is Non . . easy to reach. Hence by implementing all the above on Chevrolet we can increases its sales.2.

I. Data collection tools are instruments used to collect information for performance assessments. It involve: y y y y Postal mail Electronic mail Telephone Web-based surveys II. The data collection tools need to be strong enough to support what the evaluations find during research.2. In-person observations: Data collection tools used in personal contact observations are used when there is face to face contact with the participants. and external evaluations. Some examples of this type of data collection tool would include: y y In-person surveys ± used to gain general answers to basic questions Direct or participatory observations ± where the researcher is directly involved with the study group y Interviews ± used to gain more in depth answers to complex questions . Secondary participation: Secondary participation require no direct contact to gather information. Here are a few examples of data collection tools used within three main categories. self-evaluations.6 DATA COLLECTION METHOD: The data collection process can be relatively simple depending on the type of data collection tools required and used during the research.

I also used case studies and content analysis method in which I was in contact with Expert opinions ± leaders in the field of study (sales persons). . Some examples of this type of data collection tool would include: y y y Expert opinions ± leaders in the field of study Case studies ± previous findings of other researchers Literature searches ± research articles and papers In this project researcher Inderbir Singh used In-Person Observations method in which I have undergo surveys ± used to gain general answers to basic questions . III.y Focus groups ± where certain sample groups are asked their opinion about a certain subject or theory. Interviews ± used to gain more in depth answers to complex questions. Case Studies And Content Analysis: Case studies and content analysis are data collection tools which are based upon pre-existing research or a search of recorded information which may be useful to the researcher in gaining the required information which fills in the blanks not found with the other two types during the data collection process.

CHAPTER III DATA ANALYSIS AND INTERPRETATION .

10% FORD 8% Interpretation: This question is prepare to know the market share of GM.M. It was found that in this city market share of GM is 10% but if we see overall India its share is less than 3% . Hyundai Honda Ford Toyota Skoda & Tata No. Which car you have? Car¶s Brand Maruti G. of cars in sample space 27 8 14 14 6 9 1+1=2 %market share 34 10 17 17 8 11 3 SKODA&TATA 3% TOYOTA 11% HYUNDAI 17% HONDA 17% MARUTI 34% G.M. But survey is conducted in only city Ludhiana.Q1.

Q2. In India television is most popular way of advertise the product. Most of the GM customers came to know about their vehicle through Friends and relatives because there are very few advertisement of Chevrolet in India. How did you come to know about this car before purchasing? No. of persons % of persons 12 32 10 24 22 Friends. . relatives Advertisements Car experts Sale¶s persons visit Auto magazines 19 22 7 17 15 automagzine 22% friends and reletives 19 12% sale's person visit 24% advertisment 32% car expert 10% INTERPRETATION: From this question we have conducted that customer came to know about cars by advertisement.

. which is a good media for communicating with people and delivering our intentions about product. of customers 36 17 26 1 %age of customer 45 21 33 1 media that expose by customer F.Q3. To which media do you get expose regularly? Media Televisions Magazines News papers F.M/Radio No.M/Radio 1% News paper 33% television 45% magazine 21% INTERPRETATION: From this analysis we come to know that most of the customers are interested in watching televisions.

So to increases the sale of Chevrolet it should have to use entertainment channels to increases its sale. . Which kind of T.V. of Customer 21 25 9 45 National news channels 21% Entertainment channels 45% Regional news channel 25% Sports Channels 9% INTERPRETATION: This question is meant to know the interests and preferences of customers towards T. More than quarter of the sample size showed interest only on the entertainment channels and next preference goes to the regional news channels.V. of Customer 17 20 7 36 %age no. channels do you watch regularly? T. channels National news channels Regional news channel Sports channels Entertainment channels No. channels.V.Q4.

5 17.Q5. but high profile customer see quality. mileage. .5 25 50 17. Which factor below influence your decision? No.5 15 price 14% look and shape 21% Maintainance 11% Mileage 21% Resale value 7% Quality 26% INTERPRETATION: From this question we analysis that many customer are influence by quality and after this they influence by look and shape but during research it was found that segment A cars customer are influence by price.5 50 62. look and shape. resale value etc. of persons Price Mileage Quality Resale value Maintenance Look & shape Brand Image Pick up 13 20 25 7 10 20 7 6 % of persons 32.

Does advertisement influence your decision in choosing Car? No. From this question we have find out that 60% customer are not affected by advertisement. . of persons Yes No Total 32 48 80 % of persons 40 60 100 %age of person Yes 40% No 60% INTERPRETATION: This question is also conducted to know the factors that influence customer for purchase car.Q6.

Q7. From the above analysis many customers are expecting the finance availability with 0% interest from the various offers given to them. What kinds of offers influence yours decision before purchase new car? Offers Free insurance Special discount on sale of cars Extending the service period Finance availability with 0%interest No. of customers %age no. of customer 30 15 11 44 24 12 9 35 finance availability with 0% intrest 44% free insurance 30% extending service period 11% special discount on sale of cars 15% INTERPRETATION: By the result of this question we come to know about the various promotional techniques/offers which attract the customers. .

of customers %age of customer 77 23 62 18 local sevice centre 23% Authorized service centre 77% INTERPRETATION: This question is prepare to know the value of the authorized service centers of cars. . From this question it is find out that many customer give preference to authorized centre for service of their cars. More the service outlet more will be sale.Q8 Where do you get your car serviced regularly? Place of service At authorized service centre 41 At a local workshop near home No. Hence Chevrolet has to open more service outlets in India to increases its market share.

of customer 79 21 0 Very necessary Not needed Waste of money for manufacturer 63 17 0 not needed 21% very necessary 79% INTERPRETATION: This question is meant to know about the importance of Brand Ambassador for a car in the customer¶s point of view. of customers %age no.Q9. Most of the Chevrolet customers think that a Brand Ambassador is very necessary for promoting a car. . What¶s your opinion on a Brand Ambassador for the cars? Customer opinion on ambassador No.

What¶s your opinion about the present Ambassador Saif Ali Khan for the Car Chevrolet ? Customer opinion No. .Q10. of customers %age no. of customer Full filled the purpose Unable to attract customers 23 57 29 71 full filled the purpose 29% unable to attract the customer 71% INTERPRETATION: Most of the Chevrolet customers think that the present Brand Ambassador Saif Ali Khan for the car Chevrolet not full filled the purpose and he is not able to increase the sales of the cars U-VA.

Whom do you suggest as a right person for promoting a car? customer suggestion Sports person Film stars Car expert Any celebrity No. Because many of them get attracted only to their favorite film stars other than other brand ambassadors. .Q11. of customers %age no of customer 28 35 14 3 any celebrity 4% car expert 17% sports person 35% film star 44% INTERPRETATION: Most of the customers suggest a film star as the best ambassador.

In Ludhiana market share of GM is 10% while in India it is 3%. . Television is best media for communicating with people and delivering their intentions about product. Pick up. Ford. Maruti. 4. GM has a lot of competition from other automobile companies like Honda. Most of segment A class car user are effected by mileage. Large no. Segment B & C class car user are effected by maintence cost. Look and shape and mileage while segment D&E class car user are influence by quality. Brand Image and resale value. 7. Skoda.FINDINGS 1. 6. Large no. etc. 3. Many customer give preference to authorized centre for service of their cars. of customer feel that brand Ambassador is necessary for promoting the cars and film star can attract the customer than any other celebrity but Chevrolet ambassador is unable to attract the customer. 8. Advertisement has few effect on customer to purchase the car. 5. price. 9. of customer see entertainment channel regularly. but Chevrolet has less advertisement so GM Customer come to know about it from friends or relatives. Hyundai. Customer comes to know about the car through advertisement. 2. Toyota. Many customers are expecting the finance availability with 0% interest from the various offers given to them. Look & Shape.

Advertisements through televisions can influence many categories of people. 6. Change the brand ambassador of Chevrolet. We don¶t see or find much of the Chevrolet Car advertisements in T. Mileage of the cars is not up to the expectations. Please try to increase the number of Service outlet and sale point. Please try to rectify it . 3. 7. 5. Try to provide financial facility at 0% interest. So try to concentrate on this segment. . Chevrolet should introduce some diesel version car. 8. India then 9. Mileage of Magnum is very worst its giving only 9 to 11 Kms per liter. 2. If Service & Spare parts of Chevrolet available throughout its sales will increases. 4. Blower of Chevrolet cars should be also on rear seats.V except U-VA. but they do not respond when we come to tell our problems regarding the cars.SUGGESTIONS 1. The sales people present in the showroom respond to us properly when we come to purchase a new car.

Shortage of time is also reason for incomprehensiveness. To know customer perception regarding different cars. Research work was carried out in one District of Punjab (LUDHIANA) only the finding may not be applicable to the other parts of the country because of social and cultural differences.LIMITATIONS 1. The sample was collected using connivance-sampling techniques. 4. . The views of the people are biased therefore it doesn¶t reflect true Picture 5. As such result may not give an exact representation of the population 3. 2.

fourwheeler.google.com www.com .gmindia.com www.gm.com www.BIBLIOGRAPHY www.

M/Radio 4.ANNEXURE QUESTIONNAIRE 1. 2. How did you come to know about this car before purchasing? From friends. To which media do you get expose regularly? Televisions News papers Magazines F. channels do you watch regularly? National news channels Regional news channels Sports channels Entertainment channels .V. relatives (buzz) Car experts Auto magazines Advertisements Sale¶s persons visit 3. Which car you have? «««««««««««««««««««««««. Which kind of T.

7. What kinds of offers influence yours decision before purchase new car? a) Free insurance b) Special discount on sale of cars c) Extending the service period d) Finance availability with 0% interest 10. Does advertisement influence your decision in choosing Car? a) Yes b) No 9. Where do you get your car serviced regularly? a) At authorized service centre b) At a local workshop near my home . Which factor below influence your decision? a) Price b) Maintenance c) Mileage d) Look &Shape e) Quality f) Brand Image g) Resale value h) Pick up 8.

. DATE ««««. What¶s your opinion about the present Ambassador Saif Ali Khan for the Car Chevrolet? Full filled the purpose Unable to attract customers 13. Whom do you suggest as a right person for promoting a car? Sports person Film stars Car expert Any celebrity 14. What¶s your opinion on a Brand Ambassador for the cars? a) Very necessary b) Not needed c) Waste of money for manufacturer 12. SIGNATURE ««««««... . Any suggestion for General Motors.. «««««««««««««««««««««««« «««««««««««««««««««««««« «««««««««««««««««««««««..11.

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