Project Report

ON

A STUDY ON CUSTOMER SATISFACTION IN HYUNDAI

CARS

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE DEGREE OF

BACHELOR OF BUSSINESS ADMINSTRATION

AFFILITED TO HIMACHAL PARDESH UN IVERSITY

SHIMLA

(SESSION 2017-2020)

SUBMITED TO : SUBMITTED BY :

MRS.MINAKSHI SAROCH SUSHIL KUMAR

BBA 6TH SEMESTER

Government Post Graduate College Dharamshala

(176215)

i
 DECLARATION

I, SUSHIL KUMAR under signed hereby declare that this project report on
“A STUDY ON CONSUMER SATISFACTION IN HYUNDAI CARS’’ is
record of authentic work carried out by me during the period from 08/02/2020
to 13/03/2020 and has not submitted to any other university or institution for
the award of any degree/diploma etc.

Signature

SUSHIL KUMAR

ii
 ACKNOWLEDGEMENT

It gives me immense pleasure and privilege to acknowledge my deepest

sense of gratitude towards all those who helped me in the successful
execution of this project.

I express my sincere gratitude towards the my course co-ordinator Mr.

Manjeet singh who entrusted me for the completion of this project.

I am highly indebted to my project guide, Mrs.Minakshi saroch whose

constructive counselling and able guidance helped me immensely in
bringing out this project in the present form. And lastly the entire faculty
member and the entire Lab staff for providing me this opportunity and
expose me to industrial culture.

The acknowledgement would be incomplete without thanking my family

and friend who were a big support throughout

SUSHIL KUMAR

BBA 6th semester

iii
 CRTIFICATE FROM GUIDE

This is to certify that Mr.Sushil Kumar of Department of BBA Government post

Graduate College Dharamshala has successfully completed the project work
titled CONSUMER SATISFACTION IN HYUNDAI CARS in partial
fulfilment of requirement for the completion of BBA course as prescribed by
the Himachal Pradesh University. He has worked under my guidance.

Signature

Mrs.Minakshi saroch

iv
 PREFACE

I had to undergone for the project work after completing the fifth semester. The
attractive feature of the B.B.A. course is that along with theory we also get to
have the exposure of the practical environment. Report is based on “A STUDY
OF CONSUMER SATISFACTION IN HYUNDAI CARS”.

The Research Report revolves around the Hyundai tried to explore the
various aspects of car. The certain objectives were predefined and the task was
to accomplish them. This report also provides the survey analysis about the
nature of retailer prescription and the key factors over which a company should
have a strong hold to survive with a long-term view. The study was confined
geographically to KANGRA. The data source was collected from the regular
visits of customer and target prospects. It under that different dealer has been
visited. A set of questionnaire was prepared & scrutinized before going for
market analysis.

v
 CHAPTER INDEX
Chapter No. Title Page No.
1 Introduction 1

2 Company Profile 13

3 Research Methodology 20

4 Data Analysis and Interpretation 28

5 Conclusion and Recommendations 43

vi
 TABLE OF CONTENTS
Chapter Title Page No
No

Declaration Ii
Acknowledgement Iii
Certificate from Guide Iv
Preface V
Chapter Index Vi
List of Tables Ix
List of Chart X

I Introduction 1

1.1 Industry Introduction 2-7

1.2 Topic introduction 8-12
II Company Profile 13

2.1 Profile of Hyundai 14-19

III Research Methodology 20

3.1 Objective of The Study 21

3.2 Scope of the Study 22

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 3.3 Research Design 23

3.4 Sample size and sampling Technique 24

3.5 Data collection Method 25-26

3.6 Limitation of the study 27

IV Data Analysis and Interpretation 28-42

V CONCLUSION AND RECOMMENDATION 43 -46

BIBLIOGRAPHY

ANNEXURE

LIST OF TABLES
Table TABLE NAME Page
No. No.
4.01 How did you come to know about Hyundai 29

4.02 Which type of Hyundai car would you prefer to buy 30

viii
 4.03 Which factor prompted you to buy Hyundai car among all 31
other brands
4.04 How do you feel when you drive Hyundai cars 32

4.05 Are you satisfied with the seating capacity of Hyundai cars 33

4.06 How do you rate the price of Hyundai cars when compared 34
to other cars of same segment
4.07 Please rank the mileage of Hyundai cars compared to the 35
other segment of cars
4.08 How the company is handling complaints of customers 36

4.09 How is availability of Hyundai spare parts 37

4.10 What you will say about after sale service of company 38

4.11 Does the sale team of Hyundai regularly visit to your outlet 39
places
4.12 Would you recommend Hyundai cars to your friends, 40
colleagues or relatives
4.13 Would you consider Hyundai car as “value for money” 41

4.14 What do you think about brand position of Hyundai cars in 42

INDIA

LIST OF CHART
Table TABLE NAME Page
No. No.
4.01 How did you come to know about Hyundai 29

4.02 Which type of Hyundai car would you prefer to buy 30

4.03 Which factor prompted you to buy Hyundai car among all 31
other brands
4.04 How do you feel when you drive Hyundai cars 32

ix
4.05 Are you satisfied with the seating capacity of Hyundai cars 33

4.06 How do you rate the price of Hyundai cars when compared 34
to other cars of same segment
4.07 Please rank the mileage of Hyundai cars compared to the 35
other segment of cars
4.08 How the company is handling complaints of customers 36

4.09 How is availability of Hyundai spare parts 37

4.10 What you will say about after sale service of company 38

4.11 Does the sale team of Hyundai regularly visit to your outlet 39
places
4.12 Would you recommend Hyundai cars to your friends, 40
colleagues or relatives
4.13 Would you consider Hyundai car as “value for money” 41

4.14 What do you think about brand position of Hyundai cars in 42

INDIA

x
 CHAPTER-1

INTRODUCTION

1
1.1 INDUSTRY INTRODUCTION

Automobile Industry History

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented
the first automobile to run on roads. This automobile, in fact, was a self-
powered, three-wheeled, military tractor that made the use of a steam engine.
The range of the automobile, however, was very brief and at the most, it could
only run at a stretch for fifteen minutes. In addition, these automobiles were not
fit for the roads as the steam engines made them very heavy and large, and
required ample starting time. Oliver Evans was the first to design a steam
engine driven automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage

between 1832 and 1839. However, Thomas Davenport of the U.S.A. and
Scotsman Robert Davidson were amongst the first to invent more applicable
automobiles, making use of non-rechargeable electric batteries in 1842.
Development of roads made travelling comfortable and as a result, the short
ranged, electric battery driven automobiles were no more the best option for
travelling over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1914 for the
bulk production of cars. This lead to the development of the industry and it first
begun in the assembly lines of his car factory. The several methods adopted by
Ford, made the new invention (that is, the car) popular amongst the rich as well
as the masses.

1
According the History of Automobile Industry US, dominated the automobile
markets around the globe with no notable competitors. However, after the end
of the Second World War in 1945, the Automobile Industry of other
technologically advanced nations such as Japan and certain European nations
gained momentum and within a very short period, beginning in the early 1980s,
the U.S Automobile Industry was flooded with foreign automobile companies,
especially those of Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the
developed countries the Automobile Industries are stagnating as a result of the
drooping car markets, whereas the Automobile Industry in the developing
nations, such as, India and Brazil, have been consistently registering higher
growth rates every passing year for their flourishing domestic automobile
markets.

The World Automobile Industry is turned to the developing markets.

With the developed markets almost saturated, the World Automobile Industry is
now focused on the developing markets of South America and Asia, and
Eastern Europe with special emphasis on BRIC (Brazil, Russia, India, and
China).

As per the reports of the International Organization of Motor Vehicle

Manufacturers or OICA(the association of the companies involved in World
Automobile Industry), for the fiscal end in 2006, the automobile manufacturers

2
in the U.S. have been overtaken by those in Japan, in terms of the total volume
of automobile units manufactured worldwide.

However, the struggling General Motors of the U.S. still remain the worldwide
leaders of the World Automobile Industry, ahead of the rapidly growing Toyota
Motor Corporation of Japan, by a substantial margin.

Measures to be adopted by global leaders of the World Automobile

Industry.

Several significant economic measures are being considered by the major

players of the World Automobile Industry in order to make a smooth entry into
the markets of the developing countries, and to make a name for themselves.
The effective measures include :

 Reducing the selling prices of the automobiles manufactured in their

factories
 Improving the levels of after-sales services to keep customers satisfied
 Opening manufacturing factories in the developing nations, to reduce
effective costs of production as well as saving shipping charges, and
enhancing prompt delivery of automobile units.

Automobile Industry Trends

In keeping with the Automobile Industry Trends, the leading automobile

manufacturers are turning to the Asian markets that appear set to grow
immensely over the next decade. The automobile markets in the U.S., Europe
and the Japan have almost matured as a result of saturation and appear set to
decline through the next decade. In contrast, the automobile markets spread
3
over the entire Asian continent (with the exception of Japan), are constantly
increasing in size and will be the destination for most of the globally leading
automobile manufacturers.

The Automobile Industry Trends reveal that the emerging markets of the
developing nations of Asia especially China, and India are backed by their
huge population growth rate, to add to the growing national economy of these
two nations.

The rapid growth of the national economy of the BRIC countries (including
Brazil, Russia, India, and China) has enabled a growing section of the
population of these countries to purchase automobiles.

Global surveys conducted recently reveal that within the next ten years, these
emerging automobile markets will account for nearly a whopping 90 percent of
the global automobile sales growth.

As a result of this, leading Automobile manufacturers of the world are setting

up factories in the emerging markets, in order to serve the potential consumers
better as well as reduce manufacturing and shipping costs.

In addition, these arrangements are enabling the leading global automobile

manufacturers to compete with the local automobile manufacturers that were
flourishing in the absence of quality competition.

The prosperity of the national economy is reflected in the rising per capita
income of the developing nations. Therefore, increasing Gross Domestic
Product and per capita income have raised the purchasing ability of the

4
population that constitutes these emerging markets

As a growing percentage of the population in the developed nations age rapidly,

in comparison to the rest of the world, these aging numbers necessitate
automobiles to fit the physiological change of the world population.

Indian Automobile Industry Report (November, 2019)

The automobile industry in India is world’s fourth largest, with the country
currently being the world's fourth largest manufacturer of cars and seventh
largest manufacturer of commercial vehicles in 2018. Indian automotive
industry (including component manufacturing) is expected to reach Rs 16.16-
18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the
industry and made up 81 per cent share in the domestic automobile sales in
FY19. Overall, Domestic automobiles sales increased at 6.71 per cent CAGR
between FY13-18 with 26.27 million vehicles being sold in FY19. Indian
automobile industry has received Foreign Direct Investment (FDI) worth Rs
1,49,424 crore (US$ 22.35 billion) between April 2000 and June 2019. Five per
cent of total FDI inflows to India from April 2000 to June 2019 went into the
automobiles sector.

Domestic automobile production increased at 6.96 per cent CAGR between

FY13-19 with 30.92 million vehicles manufactured in the country in FY19.

5
In FY19, commercial vehicles recorded the fastest pace of growth in domestic
sales at 17.55 per cent year-on-year, followed by three-wheelers at 10.27 per
cent year-on-year.

The passenger vehicle sales in India crossed the 3.37 million units in FY19 and
is further expected increase to 10 million units by FY20. Production of
passenger vehicles rose 2.8 per cent.

The government aims to develop India as a global manufacturing as well as a

research and development (R&D) hub. It has set up National Automotive
Testing and R&D Infrastructure Project (NAT Rip) centres as well as a National
Automotive Board to act as facilitator between the government and the industry.
Under (NATRIP), five testing and research centres have been established in the
country since 2015. NATRIP’s proposal for “Grant-In-Aid for test facility
infrastructure for Electric Vehicle (EV) performance Certification from
NATRIP Implementation Society” under FAME Scheme which had been
approved by Project Implementation and Sanctioning Committee (PISC) on 3rd
January 2019.

The Indian government has also set up an ambitious target of having only
electric vehicles being sold in the country. Indian auto industry is expected to
see 8-12 per cent increase in its hiring during FY19
.
The Ministry of Heavy Industries, Government of India has shortlisted 11 cities
in the country for introduction of electric vehicles (EVs) in their public transport

6
systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and
Electric Vehicles in India) scheme.

The first phase of the scheme has been extended to March 2019 while In
February 2019, the Government of India approved the FAME-II scheme with a
fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22. Number
of vehicles supported under FAME scheme has increased to 192,451 units in
March 2018 from 5,197 units in June 2015. On July 29, 2019, Inter-ministerial
panel has sanctioned 5,645 electric buses for 65 cities.

Under Union Budget 2019-20, government announced to provide additional

income tax deduction of Rs 1.5 lakh (US$ 2146) on the interest paid on the
loans taken to purchase EVs.

Overall automobile exports increased by 14.50 per cent year-on-year in FY19

and in April-October 2019, overall automobile exports grew by 1.49 per cent. It
is expected to grow at a CAGR of 3.05 per cent during 2016-2026.

Domestic two-wheeler industry is expected to grow at 8-10 per cent during

FY19. Also, Luxury car market in India is expected to grow at a 25 per cent
CAGR till 2020. The Government of India expects automobile sector to attract
US$ 8-10 billion in local and foreign investments by 2023.

7
1.2 TOPIC INTRODUCTION

CUSTOMER SATISFACTION

Concept Identification-

As organizations become increasingly customer focused and driven by demand, the

need to gain customer loyalty and retain their loyalty is critical. Customer satisfaction
is the most effective way to achieve customer loyalty. Customer satisfaction and
customer loyalty share many similar traits. Customer value is the customer’s
perception of the ratio of benefits to what he or she gives to obtain those benefits. The
customer Value Triad is a framework used to understand what it is that customers
want. The framework consists of three parts: (1) perceived product quality, (2) value-
based pricing, and (3) perceived service quality.

Customers are satisfied, when value meets or exceeds expectations. If their

expectations of value are not met, there is no chance of satisfying them. Figuring out
what the customers want, however, is a difficult and complex process. To be able to
create and deliver customer value is important to understand its components. On the
most basic level, value from a customer’s perspective is the ratio of benefits to the
risks being taken while buying the product.

According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print

more frequently than any other catch phrase used to describe a new found magic for
industrial success. Before we proceed in to the study of the dynamics of Customer
Satisfaction it is important to know about, who a customer is and what satisfaction
really means.

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Who really is a Customer?

The question of defining who your customers are seems fairly easy particularly if you
have segmented your market properly and understand who you are trying to
satisfy. However subtlety that frequently goes undetected by many firms is that is that
customer set can be divided into two parts, the apparent customer and the user. The
apparent customer is the person or group of people who decide what product to buy
and basically have control over the purse strings. The user is a person or group who
physically uses the product or is the direct recipient of a service.

What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple. However as

with customer there is a subtlety that needs addressing. Satisfaction by most
definitions simply means meeting the customer’s requirement.

Customer satisfaction is a concept that more and more companies are putting at the
heart of their strategy, but for this to be successful they’re needs to be clarity about,
what customer satisfaction means and what needs to happen to drive improvement.
Without this, there is a risk that customer satisfaction becomes little more than a good
intention, with confused objectives failing to address the real issues for customers, one
helpful way to look at the problem is to rephrase the objectives: set the sights on
helping the customers meet their goals.

Customer satisfaction can be defined in many different ways. Finding the right way
for a company depends on understanding your customer and on having a clear vision
of the role that customer satisfaction is to play in the strategy. For example, a focus on
customer satisfaction can work alongside existing segmentations to support revenue
generation from high value customers or it can be a company-wide objective rooted in
the brand values. For the former, it may be sufficient to focus on improving customer
service, but for the latter a broader definition of customer satisfaction is necessary,
closer akin to corporate reputation.

9
Whatever the strategy for customer satisfaction, it must at least include getting the
basics right. Failing to achieve this can destroy the reputation as well as losing
valuable customers. Every customer, regardless of their economic worth to the
business, has the power to influence – positively or negatively – a company’s
reputation. Once the objectives for the customer satisfaction strategy are defined there
are a number of steps we can take to make sure the focus on customer satisfaction is
effective.

Building a company around Customer Satisfaction -

With the increase in customer’s demands and competition it has become a lot more
important to base the entire company on customer service. When doing this one must
first realize that every member of an organization plays an active role in customer
service. This includes both external customers and internal customers within a
company.

Customer focused organizations focus both on customer satisfaction and

profit. Achieving customer satisfaction generates the profit. In these organizations top
management has frequent contacts with external customers. The top management uses
consultative, participative, and supportive management styles to get through to the
customer. The staff focuses all of its attention on satisfying the customer’s
needs. However, the management’s job is to provide the staff with support necessary
to achieve these goals. The other department and staff in the organization that do not
have direct contact with the external customers deal exclusively with internal
customer satisfaction.

The Influence of the salesperson in Customer Satisfaction-

In an article titled, “The influence of salesperson selling behaviour on customer

satisfaction with products,” Brent Goff and James S. Boles examine the effects of
non-product related construct on customer satisfaction with major retail purchases
such as automobiles. The article states that salesperson’s selling orientation- customer

10
orientation (SOCO) will affect not only consumer satisfaction with the salesperson
and dealer, but also indirectly, satisfaction with the product or manufacturer.

In the perspectives of both the retailer and the manufacturer, customer satisfaction
represents an important issue because it relates to several desirable
outcomes. Customer satisfaction leads to future purchases, and repeated purchases of
the same product from the same source. In other words, it helps a firm retain its
present customers and build loyalty. By helping a buyer obtain product information
and providing guidelines about what should be expected during the buying process
and use of a product, a salesperson may influence customer expectations concerning
the product. Thereby this may reduce the likelihood of dissatisfaction (Grewal and
Sharma, 1991). A successful salesperson tailors to the needs of each individual
customer. By being customer-oriented, a salesperson is likely to identify with needs of
the customer, enabling the salesperson to match his or her presentation to those
requirements of the customer.

Internal Marketing – how it affects Customer Satisfaction –

Successful companies make every effort to ensure satisfaction to their customer by

focusing all organizational efforts of the company on providing superior customer
service. By doing this these companies hope to retain their existing customers and
attract new ones. Only angle of customer satisfaction commonly overlooked is the
internal aspect.

The internal customer or employee plays a vital role in achieving customer

satisfaction and loyalty. Some firm’s do not understand that the treatment of internal
customers becomes the external customers’ perception of the company. A firm’s

employees or other departments within the organization make up its internal

customers. Their job performance affects the firm’s ability to deliver superior product
and customer service (Boone and Kurtz, 1999). When a firm’s employees are happy at
work, their overall attitude and performance towards the customer enhances

11
tremendously. Internal marketing helps members or employees of an organization
understand and fulfil their roles in implementing its marketing strategy. Internal
marketing not only keeps employees happy, it also shows them how their actions
affect the firm’s ability to achieve customer satisfaction.

Customer Satisfaction as part of Service Profit Chain:

A Harvard Business Review article outlines the internal process required to drive
growth and increase profitability. The article describes the ways in which service
quality contributes to success, outlining the steps in the “Service-profit chain”:

Profitability / Growth
Customer Loyalty

Customer Satisfaction

Value

Employee Productivity

Employee Loyalty

Internal Quality

Leadership

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 CHAPTER – 2

COMPANY PROFILE

2.1 PROFILE OF HYUNDAI

13
“Hyundai” a name to be reckoned in the World Automobile industry is Korea’s
number one automaker. Hyundai has established an enviable record for growth both in
quantitative and qualitative terms transforming itself from a domestically oriented
manufacture into a global player and leading contributor to Korea’s economic and
industrial development. Hyundai Motor Company is steadily accelerating to achieve
the status of world-class automobile company.In December 1967, Hyundai Motor
Company (HMC) was born out of the Hyundai Business group, the nation’s largest
conglomerate with the purpose of entering the automobile industry to meet the
growing domestic demand for cars. Since then, HMC has played a major role in
providing transportation to further Korea’s economics growth and prosperity.

Entry of Hyundai Motor Company in the Indian Market.

Hyundai established its presence in India by opening a subsidiary called “Hyundai

Motor India Limited” with a total investment of US$ 614 Millions. The Hyundai
project is the largest to be made by an MNC in the automobile sector. The plant near
Chennai, in the state of Tamil Nadu is the largest manufacturing plant of Hyundai
motors outside Korea and contains nearly all facilities necessary for a self sufficient
manufacturing and production site for developing cars. This assembly plant not only
boasts it sown assembly facilities but also a R&D center, a performance
experimenting and testing center, and a driving testing ground. 

As such, the India plant represents a family-type combined automobile assembly

facility, capable of all production processes, research and development, testing of
products, marketing for sales and provision of after sale service in India.In 1997,
Hyundai Motor India limited launched “Santro” the best small car at its worldwide
debut in New Delhi. Santro is basically a face lifted version of the “Atos”. Santro was
introduced in three different models having varying features. Santro was a runaway
success in the India market and became famous as the Tall Boy car. It topped the
volumes year after year in its segment.

14
HMIL's first car, the Hyundai Santro was launched on 23 September 1998 and was a
runaway success. Within a few months of its inception HMIL became the second
largest automobile manufacturer and the largest automobile exporter in India. Hyundai
Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the
second largest car manufacturer in India. HMIL presently markets 10 models – Eon,
Grand i10, Xcent, Elite i20, i20 Active, Verna, Creta, Elantra, Tucson, and the newly
launched Santro.

HMC has set up a research and development facility (Hyundai Motor India
Engineering – HMIE) in the cyber city of Hyderabad.

As HMC's global export hub for compact cars, HMIL is the first automotive company
in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently
exports cars to more than 87 countries across EU, Africa, Middle East, Latin America,
Asia and Australia. It has been the number one exporter of passenger cars of the
country for the eighth year in a row.[2]

To support its growth and expansion plans, HMIL currently has 493 strong dealer
network and more than 1,309 strong service points across India.

In July 2012, Arvind Saxena, the Director of Marketing and Sales stepped down from
the position after serving the company for 7 years.[3]

In August 2018,Rakesh Srivastava, Director Sales and Marketing at Hyundai India

resigned from his position after serving for six years.

On December 4, 2018: Hyundai Motor India Ltd, announced the top level
management changes with immediate effect. Mr. Seon Seob Kim assumed the
responsibilities of ‘MD & CEO’ from Mr. Young Key Koo.

Mr. Y K Koo completed 3 years’ successful tenure to lead Indian operations and has
led Hyundai Motor India to newer heights setting new benchmarks. Out of his 35
years of professional career with Hyundai Motor Company, Mr. Y K Koo had been
the part of the Senior Management for long 12 Years in India with a strong
understanding and orientation of Indian Auto Industry. His first stint from 1997-2001,

15
when Hyundai established itself as a household name was with the launch of 1st
generation 'SANTRO' and ‘ACCENT’ in India. He strengthened the sales and
marketing operations during his second tenure from 2008-2011 and again headed the
Indian operations in his 3rd tenure from November 2015 to November 2018.
Recognizing his unmatched leadership and efforts, Mr. Koo received the Award of
'NDTV Automotive Man of the Year' for his contribution in growth of the Indian
Automobile Industry..

R&D Centre

Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary of Hyundai

Motor Company, South Korea, which is located at Hyderabad, Telangana. HMIL
established HMIE in November 2006 and contributed to the development of Hyundai
Motors' popular new models for the Indian market starting with the Eon and followed
now by the "i" series, and also in SUV segments like the Creta. Hyundai Motors' other
overseas R&D centres are located in the United States, Germany, Japan, Korea, and
China.

Regional Headquarter

W.E.F 2 July 2018,As part of organizational restructuring, Hyundai has announced the
creation of three regional headquarters – Hyundai Motor India, Hyundai Motor North
America and Hyundai Motor Europe. The regional headquarters will have various
divisions for planning, finance, products and customer experience. They will work in
collaboration with Hyundai Motor Company – the corporate headquarters based in
Seoul, South Korea.

Hyundai Motor India lead by SS Kim will oversee the operations of the brand in the
regional market.

Global Quality Centre

Named Indian Quality Centre(INQC),The centre is one of the five quality Centre
worldwide after the U.S,China,Europe and Middle East. The India centre located at

16
Faridabad,Haryana will conduct durability study of existing models and benchmark
parts and systems for constant improvement.

The key activity of India quality Centre would be to "contribute in new car
development from pilot stage to create quality product with zero defect" .
Besides, the centre will also be responsible for ensuring "top level safety
quality "through proactive customer oriented management system and
understanding feedback from them to eliminate potential risks. The centre also
has an objective to study market conditions and other Asia Pacific regions to
develop new cars and adapt strategies for continuous product quality
improvement.

The company also opened a training centre at same facility. It will have its
own body and paint unit,The new service training will ensure overall skill
development of entire service profile of dealer manpower

Ideology and Environment at Hyundai:

A management motto at Hyundai is “Customer first, best in technology, best in quality

and best value for human beings”. Hyundai as a company is dedicated to create new
value for its customers. Hyundai Motor Company’s target is to care for the
environment and devote attention to the future of our children and their ability to
inhabit a clean, pollution managed world. Hyundai believes that they have achieved
the current status as a world-class company by faithfully enforcing seven management
principles and creating an atmosphere where by each and every member of the
company is able to work for the benefit of common future. As a result, Hyundai motor
company is committed to its social responsibilities as it fulfills its mission with
dedication and strength of purpose.

YearDateMilestone2018
November 13, 2018
Hyundai’s All New SANTRO received “Best of 2018” Award by Auto X2018

17
October 31, 2018
Hyundai Tops in J D Power 2018 India Customer Service Index (Mass market) Study2018
October 23, 2018
Hyundai Announces World Premiere of 'The All New SANTRO'.2018
October 9, 2018
Hyundai Unveils India’s Favorite Family Car ‘The All New SANTRO’2018
September 14, 2018
Hyundai Introduces Next Gen VERNA Anniversary Edition2018
August 16, 2018
Hyundai Unveils First Design Renders of India’s Most Awaited Contemporary Family Car –
AH22018
July 16, 2018Hyundai Brilliant Moments – Emotional Recalling Digital Campaign Records
More Than ‘100 Million’ Views in Just 17 Days2018
June 27, 2018
Hyundai Celebrates 20 Years Journey with ‘Brilliant Moments2018
June 11, 2018
Hyundai Motor India Rolls out Fastest 8 Millionth Car in 19 Years 6 Months2018
May 25, 2018
Hyundai introduces 1.2 L Petrol Engine with CVT in The New 2018 ELITE i202018
May 21, 2018
Hyundai Launches Most Preferred Perfect SUV - 'The New 2018 CRETA'2018
February 16, 2018
Hyundai’s Next Gen VERNA received “Car of the Year” & “Sedan of the Year” Award at
BTVI Car India Awards 2017-182018
February 13, 2018
Hyundai’s Next Gen VERNA received “Car of the Year” Award by Motorbeam2018
February 7, 2018
Hyundai’s New 2018 ELITE i20 received “Best Global Debut” award by C&B Auto Show
Awards 2018.2018

HYUNDAI MARKET SHARE 2019

18
India’s second largest carmaker, Hyundai harbours the dream to become the number
one car manufacturer in the country. However, persistent dominance of Maruti Suzuki
has forced Hyundai to settle for the number 2 position. But the outlook is encouraging,
as Hyundai appears to have taken a big leap in October. If we account for sales of Kia
Seltos in October, we see that Hyundai Group in India has been able to increase its
market share by 4.5%.

For the uninitiated, Hyundai Motor Group owns 33.88% stake in Kia Motors. Both
these companies have complex shareholding arrangement and Hyundai is considered
as the de facto representative of Hyundai Kia Automotive Group.

Hyundai Group will be launching more products in India under the Kia brand in the
coming months. Considering the phenomenal success of Seltos, Hyundai may manage
to increase its market share even more over the next 5-10 years.

19
 CHAPTER-3

RESEARCH METHODOLOGY

3.1 OBJECTIVE OF THE STUDY

20
To study and understand the key service parameters using Customer Satisfaction and
reflect upon the low performing areas:

 To study about the customer satisfaction on the services provided by the

dealers.

 To study the opinion of the customers regarding the availability and cost of
spare parts.

 To study the opinion of the owners of cars regarding its features like mileage,
price etc.

 To study the effect of advertisement on the customers to promote the product.

 To study the customer satisfaction with usage of their cars.

 To study the information resources that the customer using before purchasing
the car.

3.2 SCOPE OF THE STUDY

21
  The study covers the customer’s perceptions and their most used product.

 The study is also intended to know the level of customer satisfaction towards
HYUNDAI cars when compared to other brands, as the automobile industry is
facing a stiff competition due to globalization.

 The study covers the customer’s perception for automobile sector.

 The research measures the experiences of customers.

 Defines and analyses the experiences based on key deliverables

 Gains insights into Customer expectations.

22
3.3 RESEARCH DESIGN

Research Design specifies the methods and procedures for conducting a particular
study. A Research Design is the arrangement of conditions for collection and analysis
of the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research.

On the basis of the objective of study, the studies which are concerned with describing
the character tics of a particular individual, or of a group of individual under study
comes under Descriptive Research Design.

Descriptive Research Design: In this research design the objective of study is

clearly defined and has accurate method of measurement with a clear cut definition
of population which is to be studied.

PREPARING THE RESEARCH DESIGN

The research design is developed to collect the relevant information with minimum of
efforts, time and money.

 Marketing Research Objectives:

 To undertake a prior market study before doing owns
research.
 To make an analysis on the basis of the results.
 Type of Study: Descriptive.
 Research Area: kangra region.
 Source of Information: Primary Data, Secondary Data
 Data Collection Instrument: Questionnaires & Personal Interview.

23
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUE

A Sample Design is a definite plan for obtaining a sample from a given population. It
refers t the technique r the procedure adopted in selecting items for the sample. The
main constitution of the sampling design is as below-

1. Sampling Unit
2. Sample Size
3. Sampling Procedure
SAMPLING UNIT

A sampling framework i.e. developed for the target population that will be sampled
i.e. who is to be surveyed.

 Consumers

SAMPLE SIZE

It is the substantial portion of the target population that are sampled to achieve reliable
results.

 60------- CORPORATE HOUSES/ RESPONDENT/CUSTOMER

SAMPLING PROCEDURE

The procedure to choose the respondents to obtain a representative sample, a non-

probability sampling technique is applied for the target – market.

Convenience Sampling

A convenience sample is type of non – probability sampling method where the

sample is taken from a group of people easy to contact or to reach .for example ,
standing at a mall or a grocery store and asking people to answer questions would be
an example of a convenience sample.

24
3.5 DATA COLLECTION

The data collection process is the predefined task that I have to undergo. The data
collection process starts right from the first day till the final day on the field. During
the whole period a list of different retailers scattered around whole of the South Delhi
gets visited on the regular basis. The main task is to analyze the CUSTOMER
SATISFACTION, market potential, study of the market share of the company and
analyzing the competitor’s strategies.

The survey process is not complete without consulting the Distributor & Retailers.
The distributors are the key nodes that make the chain moving effectively. So the
response made by them is also an essential criterion to involved and reaching for
certain decisions.

There are several ways of collecting appropriate data that differ considerably in the
context of money costs, time, and other resources at the disposal of the researcher.
The tools used for data collection are as:

PRIMARY DATA

The primary data are those data, which are collected afresh and for the first time. And
happen to be original in character. The primary data to be collected for the study are-

 Questionnaire – A set of questionnaire is prepared for the cause of

collecting different information related to the pre-determined objectives.
The questionnaire prepared is in two forms & targeted towards the
doctors and chemists differently. The format of questionnaire is
structured and non-disguised.

 Direct Personal Interview – Under this method of collecting data there

is face-to-face context with the person from whom the information is
obtained. The data collected are from the respective selected doctors and

25
 chemists visited regularly. The pattern used is Structured and Indirect
Interview.

SECONDARY DATA

Secondary data means data that are already available i.e., they refer the data, which
have already been collected and analyzed by someone else. When the researcher
utilizes secondary data, then he has to look into various sources from where he can
obtain them, IN this case he is certainly not confronted with the problems that are
usually associated with the collection of original data. Secondary data may either be
published data or unpublished data. Usually published data are available in:

 Various publications of the central, state and local governments;

 Various publications of foreign government or of international bodies and their
subsidiary organization;
 Technical and trade journals:
 Books, magazines and newspapers;
 Reports and publications of various associations connected with business and
industry, banks, stock, exchanges etc.;
 Reports prepared by research scholars, universities, economists etc. In
different fields, and
 Public records and statistics, historical documents, and other sources of
published information. The sources of unpublished data are many; they may be
found in diaries, letters, unpublished biographies and autobiographies and also
may be available with scholars and research workers, trade associations, labor
bureaus and other public/private individuals and organizations.

26
3.6 Limitations of the study

The study is restricted in scope of owing to the following limitations:

 Due to constraint of time only city of kangra is selected and so it cannot claim
to be a comprehensive study of the population.

 The sample size is restricted to 60 respondents.

 People are not interested in filing the questioner, so they don’t prefer it.

 People are not so much aware about these types of surveys and they ask many
questions.

 Another problem which I face was that people were hesitating to give
information about their views freely.

27
 CHAPTER – 4

Data Analysis and Interpretation

28
 1. How did you come to know about Hyundai?
Table -4.01

OPTIONS NO OF RESPONDENTS PERCENTAGE

Magazines 10 17%
Newspaper 5 8%
TV ads 30 50%
Friends 15 25%
TOTAL 60 100%

Chart – 4.01

50%
45%
40%
35%
30%
25% per%of Respondents
20%
15%
10%
5%
0%
Magazines Newspper TV ads Friends

INTERPRETATION

The above chart shows that 50% of respondents come to know about Hyundai by TV ads,
while 25% people know Hyundai by friends and 17% respondents know by magazines. There
are very few people who know about Hyundai by newspaper.

Q2 Which type of Hyundai car would you prefer to buy?

29
 OPTIONS NO OF RESPONDENTS PERCENTAGE
SUV 26 43%
SEDAN 10 16%
HATCHBACK 19 32%
OTHERS 5 9%
TOTAL 60 100%
Table – 4.02

Chart – 4.02

50%
45%
40%
35%
30%
25% PREFRENCE OF CUSTOMER
BUYING HYUNDAI CARS
20%
15%
10%
5%
0%
SUV SEDAN HATCHBCK OTHERS

INTERPRETATION

From the above chart, 43% of the respondents preferring to buy Hyundai SUV
cars ,32% respondents prefer to buy Hyundai hatchback cars ,while only 16 %
respondents prefer to buy Sedan cars.

30
Q3 Which factor prompted you to buy Hyundai car
among all other brands?
OPTIONS NO OF RESPONDENTS PERCENTAGE
Brand Image 33 55%
Maintenance 10 16%
Price 5 8%
Service 8 13%
Promotion 5 8%
Total 60 100%

TABLE – 4.03

Chart – 4.03

55%
60%

50%

40%

30%
16%
20% 13%
8% 8%
10%

0%
Brnd image Maintenance Price Service Promotion

Factor prompted to buy Hyundai cars

INTERPRETATION

From above chart it is clear, 55% of the respondents are influenced to buy car by the Brand
image of Hyundai. 16% respondents are influenced by Maintenance, 13% are influenced by
service and only 8% which are influenced by Price and promotion factor.

Q4 How do you feel when you drive Hyundai cars?

31
Table - 4.04

OPTIONS NO OF RESPONDENTS PERCENTAGE

Delighted 10 17%
Relaxed 25 42%
Comfortable 20 33%
Uncomfortable 5 8%
TOTAL 60 100%

Chart – 4.04

Uncomfortable

Comfortable

Feeling when drive Hyundai

cars
Relaxed

Delighted

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

INTERPRETATION

From above chart it is clear, 42% of the respondents feeling relaxed when they drive Hyundai
cars, while 33% of respondents feeling comfortable and 17% feeling delighted . very few
respondents are feeling uncomfortable .

32
Q5 Are you satisfied with the seating capacity of Hyundai cars ?
Table – 4.05

OPTIONS NO of RESPONDENTS PERCENTAGE

YES 50 83%
NO 10 17%
TOTAL 60 100%

Chart - 4.05

YES NO

17%

83%

INTERPRETATION

Above chart shows that 83% of the respondents are satisfied with the seating capacity of
Hyundai cars while only 17% are not satisfied with the seating capacity.

33
Q6 How do you rate the price of Hyundai cars when
compared to other cars of same segment?
Table – 4.06

OPTIONS NO OF RESPONDENTS PERCENTAGE

Very Expensive 7 11%
Expensive 36 60%
Economic 13 21%
low 4 8%
TOTAL 60 100%

Chart – 4.06

Low Very expensive

8% 11%

Economic
21%

Expensive
60%

INTERPRETATION

Chart shows that 60% of the respondents rate Hyundai cars Expensive than other segment
cars. 21% of the respondents taking Hyundai as economic cars, while 11% are taking as very
expensive. Only few respondents (8%) taking Hyundai as low price cars.

Q7 Please rank the mileage of Hyundai cars compared to the other segment
of cars?

34
Table – 4.07

OPTIONS NO OF RESPONDENTS PERCENTAGE

Excellent 2 3%
Good 12 20%
Average 18 30%
Poor 28 47%%
TOTAL 60 100%

Chart – 4.07

3%

20%

Excellent
47% Good
Average
Poor

30%

INTERPRETATION

As shown in the chart majority (47%) of respondents rating Hyundai cars has poor mileage
as compared to the other segment cars. 30% of the respondents rate average on the basis of
mileage, whereas 20% of the respondents rate Hyundai cars as Good mileage . only 3%
people rate Excellent on the basis of mileage.

Q8 How the company is handling complaints of customers?

35
Table – 4.08

OPTIONS NO OF RESPONDENTS PERCENTAGE

Good 45 75%
Average 10 17%
Poor 5 8%
TOTAL 60 100%

Chart – 4.08

Series 1

75%

17%

8%
Good
Average
Poor

INTERPRETATION

Above graph shows that 75% of the respondents are treated good by the
company during complaints , where as 17% respondents are treated average .
Only 8% of the respondents have poor experience.

36
Q9 How is availability of Hyundai spare parts?
Table – 4.09

OPTIONS NO OF RESPONDENTS PERCENTAGE

Availability 53 89%
Sometime availability 5 8%
Rarely availability 2 3%
TOTAL 60 100%

Chart -4.09

90%
80%
70%
60%
Series 1
50%
40%
30%
20%
10%
0%
Availability Sometime availabilty Rarely availability

INTERPRETATION

From the above chart it is clear, mostly (89%) respondents saying that there is
availability of Hyundai spare parts. Only 8% respondents saying that there is
sometime availability and 3% of respondents consider there is rare availability
of spare parts of Hyundai cars.

37
Q10 What you will say about after sale service of company?
Table - 4.10

OPTIONS NO OF RESPONDENTS PERCENTAGE

Good 15 25%
Average 26 43%
Poor 19 32%
TOTAL 60 100%

Chart – 4.10

Series 1

43%

32%

25%

Good Average Poor

INTERPRETATION

From above chart, it is clearly seen that 43% of respondents are rating after sale
service of Hyundai as Average, whereas 32% of respondents are rating Poor
after sale service by Hyundai. Only 25% of respondents are rating Good.

38
 Q11 Does the sale team of Hyundai regularly visit to your outlet
places?
Table – 4.11

OPTIONS NO of RESPONDENTS PERCENTAGE

YES 24 40%
NO 36 60%
TOTAL 60 100%

Chart -4.11

Yes
40%

No
60%

INTERPRETATION

As shown in the chart 60% of the respondents are saying that there is no regular
visiting by Hyundai sales team in their outlets places. Only 40% of the
respondents are saying yes that Hyundai sales team visit regularly their outlets
places.

39
Q12Would you recommend Hyundai cars to your friends,
colleagues or relatives?
Table – 4.12

OPTIONS NO OF RESPONDENTS PERCENTAGE

likely 35 58%
Neutral 15 25%
Unlikely 10 17%
TOTAL 60 100%

Chart – 4.12

Series 1

Unlikely 17%

Neutral 25%

Likely 58%

INTERPRETATION

From chart it is clear that 58% of the respondents are like to prefer Hyundai cars
to their relatives and friends, while 25% of the respondents are replying as
neutral. Only 17% of the respondents are unlike to prefer Hyundai cars.

40
Q13 Would you consider Hyundai car as “value for money”?
Table – 4.13

OPTIONS NO OF RESPONDENTS PERCENTAGE

Agree 35 58%
Disagree 25 42%
TOTAL 60 100%

Chart – 4.13

42%

Agree
Disagree
58%

INTERPRETATION

Here chart shows that 58% of the respondents are agree to consider Hyundai
cars as values for money whereas 42% of the respondents are disagree to
consider Hyundai cars as value for money.

41
Q14 What do you think about brand position of Hyundai cars in INDIA?

Table – 4.14

OPTIONS NO OF RESPONDENTS PERCENTAGE

Excellent 2 3%
Good 28 47%
Average 18 30%
Poor 12 20%
TOTAL 60 100%

Chart – 4.14

Series 1

47%

30%

20%

3%

Excellent Good Average Poor

INTERPRETATION

As shown in above chart, 47% of the respondents think Brand image of

Hyundai is good, 30% of the respondents think it is average.20% of the

42
respondents think brand image of Hyundai is poor whereas only 3% think it’s
excellent.

CHAPTER – 5

CONCLUSION AND
RECOMMENDATION

43
 CONCLUSION

1. Maximum of the respondents is attracted towards the brand image and

promotion of Hyundai.

2. Almost all the respondents are satisfied with the seating capacity in their
cars.
3. Maximum of the respondents considers that the cost of their car is
economical and respondents consider that it is moderate when compared
to same segment cars of other manufactures.

4. Maximum of the respondents considers the mileage as Poor.

5. Almost all the respondents are delighted while driving.

6. Maximum of the respondents consider the brand image is good in India

but when it is compared to other brands it become low.

7. Maximum of the respondents are satisfied with the after sale service of
the company.

8. Maximum of the respondents prefer to buy Hyundai SUV cars than other
like sedan, hatchback etc.

9. Maximum of the respondents consider Hyundai car is value for money

on the basis of overall performance

44
10. The study shows that television is the most effective media for
advertising as 50% of respondents came to know about Hyundai.

RECOMMENDATION

1. MILEAGE: The company is not consistent as for the mileage is

concerned. Some of the people are quite satisfied while some are not at all
satisfied, extensive communication is thus needed to overcome this
problem.

2. PICK UP: Hyundai engine car is poor especially while the A/C is on.
The improvement on the technical aspects should be performed.

3. COST OF SPARE PARTS: The spares Parts of Hyundai are more

expensive as compared to the competitor’s. People are not too much
aware of the outlets. An effective advertising in this respect is needed.

4. COMMUNICATION: Communication improves customers and dealer

relation & interaction. Ineffective communication is creating a big too gap
between the customers and the company. Thus it must be improved.

5. ADVERTISING: The advertising policy of the company is not very

good. So that improvement should be done to build brand image. These
are the suggestions which throws light on the weaknesses of the company
and where the company needs to give attention .The marketing
45
 department needs to give more attention and position the car again. So
that the customer loyalty towards the company can be ascertained.

6. Some of the customers have complained about the slack in the delivery
process and timings. Therefore, this is the area which I recommend to the
showroom to sfocus a little bit more. It needs to improve its delivery
process and time. Need to become little quick and fast.

7. Some of the customers have also complained about the after purchase
services provided by the showroom. Even though the complaints are
minor, the showroom needs to resolve the customer after purchase service
issues in order to achieve customer satisfaction

.
8. Few respondents felt that the paint and body was not up to the mark. It is

more prone to rust. This is an area of concern which the company should

look upon.

46
 BIBLIOGRAPHY

Books:

Principles of marketing : KOTLER ARMSTRONG.

Marketing Management : PHILIP KOTLER.

(Analysis, Planning Implementation and Control)

HARPER W. BOYD,JR “MARKETING RESEARCH, published by Jyoti

Publisher, 2006

WEBSITES

 www.hyundaimotorindia.com
 https://en.wikipedia.org/wiki/Hyundai
 www.automeet.com

a
ANNEXURE

b
 QUESTIONAIRE
T0PIC- CUSTOMER SATISFACTION IN HYUNDAI CARS

Personal information:

Name :

Age :

Gender :

Occupation:

Q1 How did you come to know about Hyundai?

a) Magazines
b) Newspaper
c) TVs ads
d) Friends
e) Other

Q2 Which type of Hyundai car would you prefer to buy?

a) SUV
b) Sedan
c) Hatchback
d) Others

Q3 Which factor prompted you to buy Hyundai car among all other
brands ?

a) Brand image

c
 b) Price
c) Service
d) Maintence
e) Promotion

Q4 How do you feel when you drive Hyundai cars ?

a) Delighted
b) Relaxed
c) Comfortable
d) Uncomfortable

Q5 Are you satisfied with the seating capacity of Hyundai cars ?

a) Yes
b) No

Q6 How do you rate the price of Hyundai cars when compared to other
cars of same segment ?

a) Expensive
b) Moderate
c) Economic
d) Very low

Q7 Please rank the mileage of Hyundai cars compared to the other

segment of cars ?

a) Excellent
b) Good
c) Average
d) Poor

Q8How the company is handling complaints of customers ?

a) Good
b) Average
c) Bad

Q9How is availability of Hyundai spare parts ?

d
 a) Availability
b) Sometime availability
c) Rarely availability

Q10 What you will say about after sale service of company ?

a) Good
b) Average
c) Poor

Q11 Does the sale team of Hyundai regularly visit to your outlet places ?

a) Yes
b) No

Q12 Would you recommend Hyundai cars to your friends , colleagues or

relatives ?

a) Very likely
b) Likely
c) Neutral
d) Unlikely
e) Very unlikely

Q13 Would you consider Hyundai car as “ value for money ” ?

a) Agree
b) Neutral
c) Disagree

Q14 What do you think about brand position of Hyundai cars in INDIA ?

a) Excellent
b) Good
c) Average
d) Poor

Q15 According to you what are the areas of improvement is needed ?