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THESIS REPORT ON
“CONSUMER PERCEPTION STUDY WITH RESPECT TO MAHINDRA & MAHINDRA XYLO”
SUBMITTED TO: PROF. SUMANTA SHARMA EXTERNAL GUIDE: MR. SUMIT SADHWANI
SUBMITTED BY MONILA DAWAR PGP/FW-2007-2009 ALUMNI ID NO.: DF79-M-0477
The automobile industry today is one of the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the passenger car sales have increased at the rate of 25% per annum in June 2005-06 and at the rate of 37% per annum in june 2006-07 . Further competition is heating up in the sector with a host of new players coming in and other like Porsche, Bentley, Audi, and BMW all set to venture in the Indian markets. One factor that could help the companies in the marketing of their product is by knowing and creating a personality for their brands. An attempt could be taken to answer some of the questions regarding brand personality of selected cars in India by conducting the market research. This comprehensive study is categorized into parts, deals with introduction to brand personality, companies selected, product and the industry. One factor that could help the companies in the marketing of their products is buying behavior of the consumers. The Buying Behavior of the customers can be studied by knowing their perceptions about the cars in the market and about the possible entrants in the market. One such technique is by knowing and creating a personality for the brands. This personality sketching will help in knowing what a customer (or a potential customer) thinks about a given brand of car and what are the possible factors guiding a possible purchase. Similarly, the idea of measuring the customer satisfaction will serve the same purpose of determining the customer perception. Thus, by measuring the” willingness of existing users of a car to recommend it to others” will help the car manufacturers to chalk out the entire Customer Buying Behavior. The thesis shall attempt to answer some of the questions regarding “how to increase passenger car sales”, specially talking about our own Indian automobile company Mahindra and Mahindra. By conducting a survey we could know the brand personality of selected cars in India and many more factors which could increase the passenger car sales. The market research will be helpful for the new car entrant companies in India as well to find out the PGP/FW/2007-09 DF79-M0477
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possible gaps between the customer expectations and the present market offerings. This way Mahindra and Mahindra automobile Ltd will be able to increase their share in the ever-expanding Indian market pie. The research will track the customer satisfaction in the following two layers: Product related Parameters &Dealers related parameters The customer satisfaction index will be calculated for the car brands taken into consideration.It will be mainly a primary research and the information will be gathered from both primary and secondary research. The study will analyze the applicability of existing research concepts, theories, and tools for evaluating consumer satisfaction.
G.Monila Dawar iv SIGNATORY PAGE This is to certify that the Project Work entitled “Consumer Perception Study with Respect to Mahindra & Mahindra Xylo” is a record of bonafide work carried out by Monila Dawar under my supervision towards partial fulfillment of the Post Graduate Diploma in Management (P. SUMIT SADHWANI PROJECT GUIDE PGP/FW/2007-09 DF79-M0477 . New Delhi.M) programme of the Indian Institute of Planning and Management.D.
edu> Subject: Thesis Topic Approval (M) FW/ 2007-09 To: email@example.com@iipm.876 PGP/FW/2007-09 DF79-M0477 . Dipti Sharma at dipti. Sumanta Sharma Dean (Academics) The Indian Institute of Planning and Management New Delhi Sumanta. as proposed by you. 2:28 AM Dear Monila Dawar.edu Phone: 011– 42789910. Please ensure that the objectives as stated by you in your synopsis are met using the appropriate research design. 2009. the objective of a thesis should be value addition to the existing knowledge base. Your Alumni ID Number is DF79-M-0477 You are required to correspond with us by sending at least six response sheets to Prof. Sumit Sadhwani .Monila Dawar v THESIS APPROVAL LETTER From: thesis <firstname.lastname@example.org Date: Tuesday. May 26.This email is an official confirmation that you would be doing your thesis work under the guidance of Mr. Make it a comprehensive thesis. before 31st July 2009(the last date for thesis submission). has been approved . This is to inform that the thesis topic “Consumer Perception Study with Respect to Mahindra & Mahindra Xylo”. Ph-01142789903( format attached along with this mail) at regular intervals. You must always use the thesis title as approved and registered with us.sharma@iipm. Regards.edu.
the XYLO price range starts at Rs.500. To conduct a survey of to gauge the consumer perception in regards to M&M Xylo. Mahindra has recently launched the Xylo. INTRODUCTION TO THE AREA OF RESEARCH: Mahindra and Mahindra is the market leader in utility vehicles in India since inception and currently accounts for about half of India’s market for utility vehicles with a product portfolio that ranges from rugged.24. RESEARCH OBJECTIVE: To enlist the key feature of M&M Xylo. 6. To identify the key marketing initiatives of M&M Xylo in Delhi.Monila Dawar vi THESIS SYNOPSIS DETAILS OF THE STUDENT: Name Batch Specialization Section Phone No Email Id : : : : : : Monila Dawar FW07-09 FINANCE F5 9911843138 Monila_dawar@yahoo.com DESIRED AREA OF RESEARCH: Marketing TITLE OF THE THESIS: A study on the consumer perception in regards to newly launched XYLO by Mahindra and Mahindra. mass-transport utility vehicles to personal segment sports utility vehicles like the Scorpio. Available at 57 select Mahindra dealerships in January and another 44 dealerships from February.While the world-class Scorpio (declared to be the ‘Car of the Year’ PGP/FW/2007-09 DF79-M0477 . perhaps the most complete car with luxury comforts to enter the Indian market with everything that today’s sedans offer and much more.
Mahindra has planned to produce 25.000 units of the Xylo annually. Now. The Xylo range starts at Rs 6. JUSTIFICATION PROPOSAL The Mahindra Xylo multi-utility vehicle (MUV) has been launched in January 2009.5l m-Eagle CRDe engine and is meant to compete with the Toyota Innova. The Xylo is accessible at around 100 dealers.Monila Dawar vii by CNBC Autocar. it will have a presence in the passenger car and the medium and heavy commercial vehicle segments too. The Xylo comes with a 2. 24. RESEARCH METHODOLOGY: Information Source: Primary Sources: Primary data will be collected from: • • Officials of Mahindra and Mahindra Survey of 100 Customers in Delhi Secondary Sources: Secondary data will be collected from Mahindra and Mahindra. BBC Wheels and Business Standard Motoring) is the Automotive Sector’s current flagship. SCOPE OF THE STUDY: The scope of the study will be limited to analysis of only M&M Xylo in Delhi using a set of questionnaire. The Mahindra Xylo FOR CHOOSING A PARTICULAR RESEARCH PGP/FW/2007-09 DF79-M0477 .The Automotive Sector of the Mahindra Group is currently present in the multiutility vehicle. with its joint ventures. power steering and power windows. it has many more products that have made it popular with individuals and institutions in India and the world. The diesel engine has a power output of 112bhp and produces a maximum torque of 235Nm. light commercial vehicle and three-wheeler segments.500 with the basic model possessing features like HVAC.
com PGP/FW/2007-09 DF79-M0477 .sadhwani@hotmail. sumit. Sumit Sadhwani Sales Manager (Indore) 09893665070 Mahindra and Mahindra sumit. DETAILS OF THE EXTERNAL GUIDE Name Designation Contact No Company E-mail id : : : : : Mr.sadhwani@mahindra.Monila Dawar viii offers space all around such that even a six-foot tall person can stretch in comfort in the third row.com.
guided and helped me in the successful completion of the project. Delhi. who were so generous with their valuable time and expertise. giving me the opportunity to do this project/study and also assisting me for the same. My research would have been inchoate without the assistance of the consultants in various market research firms and PR agencies I consulted and I also acknowledge all the employees and the respondents who helped me without hesitation in sharing their experiences out to learn the process. which has been a learning experience. I owe debt of gratitude to them. Through this acknowledgement I express my sincere gratitude towards all those people who helped me in this project.Monila Dawar ix ACKNOWLEDGEMENT I am deeply indebted to all who have inspired. Sumit Sadhwani for guiding me throughout this study without his help this dissertation would have not be completed. I appreciate the co-ordination extended by my friends and also express my sincere thankfulness to the entire faculty members of Indian Institute of Planning & Management. PGP/FW/2007-09 DF79-M0477 . I am thankful to my project guide Mr.
Monila Dawar x TABLE OF CONTENTS 1 2 2 3 4 5 5 6 7 8 9 10 11 12 13 14 15 16 Abstract Signatory Page Acknowledgements Table Of Contents List Of Figures List Of tables Thesis Synopsis Introduction Overview of Auto Segment Size And Share Of The Automobile Market Company Profile & Logistics Brand Personality Objectives of Study & Objectives of Research Research Methodology Findings & Analysis Recommendations Conclusion References 2-3 4-7 8 9 10-11 11 12-13 14-18 19 20-28 29-48 49-58 59-62 62-63 64-89 90-92 93-94 95-102 PGP/FW/2007-09 DF79-M0477 .
Monila Dawar xi
LIST OF FIGURES
Serial No. 1 2 3 4-5 6 7 8 9 10 11 12 13 14 15 16 17 18 19-20 21-22 23 24 25 26-27 28 29 30 31 32 33 34 Figures Major attributes of customer satisfaction The buying Process Three core elements of satisfaction Indian Automobile Industry size& Indian Automobile Industry product Indian Automobile Manufacturers in India and Plant Locations Automobile Manufacturers Market Share Domestic Sales of Cars Information of Flow of supply chain Showing the demand forecasting Central Production and Planning Control Inventory management Showing the cost management Research Project Steps Motives of buying a car Product specific reasons for buying a car Liking for the interiors of the segment B cars Cars interior’s parameters Safety parameters of different cars Car fuel efficiency parameters Top speed of family car Availability of parts of family car Dealer related parameters for different manufacturers Brand image of the cars & perception of different cars Customer action :recommending car to friends Segment wise customer perception Demographic: Age wise perception Monthly family income Respondents objective buying a car brand Recommending a car to your friends Respondents ranking of brand and company image Page No. 16 17 18 21 23 25 28 31 32 34 42 43 62 64 66 68 69 71-72 73-74 75 77 80 81-82 83 84 85 86 87 88 89
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LIST OF TABLES
Serial No. 1. 2. Tables Explains the growth of India Car Sale. Replies of the company as people Page No. 26-27 50
It is true fact that if you are satisfied you recommend to others. Word of mouth and customer satisfaction play a very important role in determining market perception about an automobile. It is the market perception that determines the success of a company and so it is very important for the car manufacturers to measure the “willingness of existing users of a product to recommend it to others”. The same is a lot of interest to customers as well for it helps them make the purchase decision. A car is one of the most significant purchases that an Indian household makes and this thesis addresses the most important question that perplexes car manufacturers: “What makes the perfect car and how to increase the sales of the Mahindra and Mahindra’s passenger car ?” The thesis highlights the factors that influence the buying decision of a consumer. The factor under consideration would be: Price Income of the consumer Features in the car Safety standard Warranty scheme Finance facility Re-sale value Sturdiness and Looks
Is an Indian consumer ready for more? Which is the driving motive behind the effective demand of the car? How the coming of new models like Honda’s
The method for obtaining and using this information shall be determined. you cannot improve it.1. companies can determine the actions required to meet the customer’s needs. the organizations shall monitor information relating to customer perception as to whether the organization has met customer requirements. However falling short is certain to create dissatisfaction. They can identify their own strengths and weaknesses. of which one the customer will finally turn the ignition on and drive. Customer satisfaction index: some of the most advance thinking in the business world recognizes that customer relationships are best treated as assets. The requirement has been there in the QS9000 standard clause 4. As one of the measurements of the performance of the quality management system.” There is obviously a strong link between customer satisfaction and customer retention. and reviewed by senior management. Major attributes of customer satisfaction can be summarized as: PGP/FW/2007-09 DF79-M0477 . In other words. from the spread of choices offered by various manufacturers under various segments.Monila Dawar 2 Jazz is going to effect the buying decision of consumer and especially the Tata 1 lakh car. Customer’s perception of service and quality of product will determine the success of the product or service in the market. where they stand in comparison to their competitors. chart out the path future progress and improvement. and that methodical analysis of these relationships can provide a road map for improving them. Customer expectations are the customer-defined attributes of your product or service. We cannot create satisfaction just by meeting customer’s requirements fully because these have to be met in any case. as somebody has said if you cannot measure it. or appropriate benchmarks. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. These trends shall be compared to those of competitors. With better understanding of customer’s perceptions.6 which says: “Trends in customer satisfaction and key indicators of customer dissatisfaction shall be documented and supported by objective information.
accessibility and attitudes Values + Benefits - Features - Attributes Figure-1: Major attributes of customer satisfaction We cannot begin to address the customer satisfaction issue we define the parameters and measures clearly. usually as a percentage PGP/FW/2007-09 DF79-M0477 .Monila Dawar 3 Product quality Product packaging Keeping delivery commitments Price Responsiveness and ability to resolve complaints and reject reports Overall communication. The customer satisfaction index represents the overall satisfaction level of that customer as one number.
Monila Dawar 4 The buying process involves the following steps: Problem Recognition Information search Evaluation Decision Buy Post Purchase Dissonance Dissatisfaction = Brand Rejection Satisfaction = Brand Acceptance Figure-2 “The fact that word of mouth sales are a big deal in this industry has also helped.it has undergone through following: PGP/FW/2007-09 DF79-M0477 . Industry players and market surveys reveal that 20-30 percent of sales are through word of mouth”. For knowing : How to increase passenger car sales .
Increase in disposable incomes and standards of living of middle class Indian families. The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles.Monila Dawar 5 Surveying the relevant consumer base through exhaustive questionnaire. Foreign car companies have discovered the Indian consumer as well as the R & D potential in the Indian technical fraternity and are setting up manufacturing plants right and left across the country at lower costs. 2. reduction of PGP/FW/2007-09 DF79-M0477 . Understand the elements underplaying in each segment Deducing an analytical overview through different statistical methods Recommendation comes from satisfaction and satisfaction comes from Figure-3: Showing three core elements of satisfaction OVERVIEW OF THE AUTO SEGMENT Indians have emerged as an avid car enthusiasts sporting their prized possessions as status symbols and speed machines. This boom has been triggered primarily by two factors: 1. The Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations.
7 billion industry. In the long run India is well set to become a key market for automotive and component manufacturers in terms of local demand and as a base for export.000 units (with a CAGR of 10 per cent over the past 4 years) while the exports were 130. U. Additionally.Monila Dawar 6 tariffs on imports. India is fast integrating itself into the world economy and open to international automotive companies. Delphi and MICO/Bosch are utilizing India’s well developed IT / software capabilities and have set up R&D hubs here for their global operations. companies such as GM. who are increasingly investing in India. and Europe to enter the Indian market mainly through joint ventures with Indian firms. Industry observers predict that passenger vehicle sales will triple in five years to about one million. it is expected to almost treble in less than eight years time to US$ 17 billion by 2012 PGP/FW/2007-09 DF79-M0477 . Presently a US$ 6. to develop new products and to increase exports.A. INDUSTRY SIZE The domestic Indian passenger car market (including utility vehicles) totaled900. and is expected to maintain robust growth in the future At the back of this phenomenal automotive growth is the success of the Indian auto component industry.000 million units (with a registered CAGR of 68 per cent over the past 4 years) during financial year 2004 The Indian two-wheeler Industry is one of the largest in the world. and as the market grows and customer's purchasing abilities rise. India is increasingly becoming a global automotive hub both for the vehicles and component industry. and banking liberalization that has fueled financingdriven purchases. These trends have encouraged many multinational automakers from Japan. The Indian automotive and component industry is looking to increase the quality of production from existing levels. there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market..S. Toyota. Daimler Chrysler.
The passenger car market is projected to grow at a CAGR of 12.3 per cent over the next few years.Monila Dawar 7 India offers a distinct technological and cost-competitive advantage. Growth in the mid-size and premium car segments is expected to outpace the overall market growth. Figure-4: Indian Automobile Industry size Figure-5: Indian Automobile Industry Products PGP/FW/2007-09 DF79-M0477 . which global Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both manufacturing and research facilities.
and marketing. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure. design and development. • • • • India is the 2nd largest two wheeler manufacturer in the world Second largest tractor manufacturer in the world 5th largest commercial manufacturer in the world 3rd largest car market in Asia. and has become a excellent manufacturing base for global players. surpassing China in the process Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer & is a driver of product and process technologies. because of its • • • • • • high machine tool capabilities Extremely capable component industry Most of the raw material locally produced Low cost manufacturing base Highly skilled manpower Special capability in supplying large volumes Domestic and Foreign Vehicle Manufacturers: PGP/FW/2007-09 DF79-M0477 . Automobile industry in India is today poised for the big leap.Monila Dawar 8 Automobile Industry in India is still in its infancy but growing rapidly.
Monila Dawar 9 Figure-6: Indian Automobile Manufacturers in India and Plant Locations PGP/FW/2007-09 DF79-M0477 .
The A/B segment accounts for over 65% of the total passenger vehicles produced. Ford. General Motors. Competition in this segment is stiff with Maruti the market leader with around 55% market share. New models from Telco (Indica). Car demand has seen a turnaround since mid 2001 thanks to heavy discounts and cheaper finance. Commercial Vehicles The main Indian companies in the Commercial Vehicle segment are: • TATA Engineering and Locomotive Company (TELCO) DF79-M0477 PGP/FW/2007-09 . Toyota and Telco domestic UV business remains flat. Mahindra (51. although the volumes are not significant. In terms of volumes: • The A/B segments are where India’s strength and future lies.5% market share) posted increased sales of 16% in the first 3 quarters of 2007/08. both locally assembled and imported. Honda. • The mid / luxury range is developing with the introduction of Ford (Ikon).Monila Dawar 10 Passenger Vehicles The main domestic manufacturers of passenger vehicles are as follows: • • • • Maruti Udyog Tata / Telco Mahindra / Mahindra Hindustan Motors Foreign competitors manufacturing locally including Hyundai. • The UV segment remains sluggish with growth at just over 1%. The clear market leader. and Toyota. A large number of new models. have also revitalized the market. Hyundai (Accent/Sonata) and Skoda (Octavia). Hyundai (Santro) and Fiat (Palio) however are eroding Maruti’s long standing dominance in this segment.
Other global players are active. This sector has received a huge boost with India’s massive demand from the infrastructure sector (particularly roads). PGP/FW/2007-09 DF79-M0477 .:IVECO (manufacturing their range of trucks in association with Ashok Leyland. such as Volvo but again volumes are not large.Monila Dawar 11 • • • • Ashok Leyland Bajaj Tempo Ltd Eicher Motors Ltd Swaraj Mazda An international company currently manufacturing CVs in India.g. cyclical fleet replacement by fleet owners and an upturn in the cement and steel sectors. although in partnership with one of the domestic manufacturers E. There has been a significant turn around in this segment over the last 18 months with over 30% growth being seen in terms of both production and sales.
604 Mn0.Monila Dawar 12 Passenger Cars LCV 0.083 Mn PGP/FW/2007-09 DF79-M0477 .
Monila Dawar 13 Bajaj Tem po 7% Ashok Leyland 1% Eicher 8% HM 2% M &M 30% Tata 44% Sw araj Mazda 8% Hyundai 18% Tata 13% Fiat 4% Ford 3% HM 2% Maruti 55% Toyota 0.2% 1% 1% Figure-7: Automobile Manufacturers Market Share PGP/FW/2007-09 DF79-M0477 .3% Daimler Honda GM 2% Chrysler Mitsubishi Skoda 1% 0.
066 24. together hold close to 75% of market b) Daewoo stopped production.7 20.008 2682 255 21.967 7.4 1.7 5. Passengers Vehicles (PVS) From AprilNovember 04-05 2.105 31 9.07.186 15.2 905 0 54 0 PGP/FW/2007-09 DF79-M0477 .9 8.348 24.897 24.7 3.348 10.983 42.404 51.026 From AprilNovember 05-06 2.042 17.69360 89.043 68.Monila Dawar 14 • • Maruti (JV of Suzuki).1 -30% Total number of exports in April 05-06 23.2 -2. Toyota KirloskarMotorPvt Ltd. Ford India Pvt.374 12.3 2.4 1. explains the growth of India Car Sale during the aforementioned period. Ltd Utility Vehicles Mahindra and Mahindra Ltd.610 12.2 16.402 23. Hyundai Motor India Ltd.9 The Net Change between the period (in %) 8. Tata Motors HondaSiel cars India Ltd.075 95. Tata and M&M are the key players a) Followed by Hyundai and Tata. Maruti Udyog Ltd .91.027 2472 1. Multi-Purpose Vehicles 49.6 -7. mainly due to financial issues The following Table-1. leading the market.8 308.512 Total Market Share (in %) 52.540 24.2 71.9 10 2 0.1 20.928 Maruti Udyog Hyundai Motors India Ltd. Tata Motors Ltd General Motors India Pvt Ltd.2 19.182 1.878 0 19.6 4.
043 3.614 27.1 12.178 2.835 2.811 1.573 73.577 8.1 27.671 3.7 -15 11.7 -13.731 2.315 2.8 16. Mahindra & Mahindra Ltd Medium and Heavy Commercial Vehicles Tata Motors Ashok Leyland Eicher Motors Swaraj Mazda Light Commercial Vehicles Passenger Carriers Tata Motors Mahindra and Mahindra Swaraj Mazda Force motors Ltd.7 1.380 23.600 204 451 PGP/FW/2007-09 DF79-M0477 .807 2825 318 115 5.5 0 731 0 79.563 2.019 44.299 2.6 21.388 13 43.080 61.2 3.6 39.305 1.461 1.059 6.538 33.960 1.700 4.2 14.2 4.955 23.7 7.8 13.858 0 100 0 3.4 0.096 115 12 59 30. Goods Carriers Tata Motors Mahindra and Mahindra Swaraj Mazda Eicher Motors 42.5 3 3.Monila Dawar 15 Maruti Udyog Ltd.9 -2.4 -7.1 8.954 58.877 46.5 9 19.406 8.9 31.9 43.
M&M began by assembling complete knock down (CKD) Jeeps in 1949.It expanded to indigenous manufacture of Jeep vehicles with a high level of local content under license from Kaiser Jeep and later American Motors (AMC).It traded steel with suppliers in England and the United States. PGP/FW/2007-09 DF79-M0477 . It is the flagship company of the Mahindra Group. The company was set up in 1945 as Mahindra & Mohammed .Monila Dawar 16 Figure-8: Domestic Sale of Cars Chapter-2 COMPANY PROFILE M&M AUTOMOBILELTD Mahindra & Mahindra Limited (M&M) is a major automaker in India.
to focus on developing components and offering engineering services In this thesis I have tried to describe how M&M has modified the structure of the organization in order to implement a successful supply chain. The company has been in existence since 1994. farm equipment.Monila Dawar 17 M&M soon branched out into manufacturing agricultural tractors and light commercial vehicles (LCVs). the Mahindra Systems and Automotive Technologies (MSAT). M&M has obtained operational efficiency by keeping a constant watchful eye on the developments on the supply chain. The company also has presence in the Light Commercial Vehicle market. M&M is the leader for Utility Vehicles in India today. By 2005. The company has recently started a separate sector. trade and finance related services. information technology. It later expanded its operations to secure a significant presence in many more important sectors. The company has six plants across the country. as well as infrastructure development. The company has now transformed itself into a group that caters to the Indian and overseas markets with a presence in vehicles. M&M had become the largest producer of SUVs in India. The different processes and initiatives taken across the supply chain of M&M have been described below. These plants are in the following cities • • • • • • Mumbai Nasik Igatpuri Haridwar Zahirabad Chennai PGP/FW/2007-09 DF79-M0477 . The company’s commercial three wheeler “Champion” does brisk sales in the country. The endeavor of the company to reduce its costs in order to increase the profit margins has been described.
a suburb of Mumbai has a Mahindra plant devoted to the production of MAXX pick-ups and soft tops . SCOPE OF MATERIAL MANAGEMENT IN M&M The flow that has been shown below is the “flow of information”. will reach the dealers. after assembling. PGP/FW/2007-09 DF79-M0477 . The “flow of materials” will be in a direction that is opposite to that of the flow of information. It has also been recommended for the TPM Excellence Award apart from ISO/TS 16949 certification.Monila Dawar 18 The plant at Mumbai specializes in the manufacturing of pick-up trucks.This plant enjoys the great infrastructure that the city of Mumbai offers. Hence the flow of materials will start with the suppliers and the final product. Figure-9: Information of Flow of supply chain M&M uses SAP to keep track of the events that happen across the supply chain. Kandivali. Here forth I will put light into the various aspects of material management with regards to M&M plant kandivli.
It is the marketing department that will give the figures for production to the production department. This data is available for a number of years. For the dealers who do not have the access to SAP it is mandatory to report the sales of the previous day to the marketing office every morning. This is the figure that is forecasted and passed along. Why is Demand Forecasting an Important Element in the Supply Chain ? PGP/FW/2007-09 DF79-M0477 . From the supply chain point of view this is a very essential and an indispensable function. Then by tracking the data and then incrementing the sales which are expected considering the growth rate the marketing department comes to a figure. This is one of the most important functions of the marketing department. M&M hence is taking a major initiative to make all of its dealers SAP enabled. considering sales achieved in the past for the particular month for which forecasting is being done. All the regional offices will then send these figures to the Marketing Head Office at Worli. In such a manner all the regional offices get the figures from the dealers everyday. the dealers stocks are replenished. Then based on the demand and the expected growth the expected sales are calculated. Proper delivery of the products to every corner of the country where demand exists has to be seen by the marketing department.Monila Dawar 19 According to the design it is imperative for every dealer to record the sales that have been achieved on a particular day on to the system. The marketing department has to track all the data over the years. Also based on the figure obtained from the marketing department the production planning and the further processes are carried out. Marketing also has to indulge in “demand forecasting” so that the production planning can be carried out effectively. Here firstly.
However if the production of the vehicles happens at a rate that is faster than the rate of sales then the finished good inventory will keep on increasing and the money invested in the production of the vehicles will not get its returns in the form of sales. Also apart from the customer himself the distribution network of the company would start losing faith in the company and this would lead to dilution of the companies brand image internally and externally too (due to bad publicity by the customers lost). If the rate of production of the vehicles happens at a rate that is lower than the demand in the market then it might result in the loss of a sale as the customer might buy a competitors product as the product that he wants is not available. A person will not buy an automobile everyday For companies who have products which have low cost of production it makes sense for them to stock their products in to the PGP/FW/2007-09 DF79-M0477 . So in turn the inventory holding costs will also go up considerably However automobiles are not a low involvement product. Revenue can be increased by increasing the per unit price of the vehicle and selling at the existing quantity or by selling more vehicles at the same price. Also an important fact to be seen here is that the manufacturing costs of a vehicle are very high.Monila Dawar 20 Figure-10: Showing the demand forecasting Every organization wants to maximize its revenue and minimize cost to achieve optimum profitability.
Thus the figure received from the CPPC is then further broken up by the PPC according to the requirement of the individual departments. The monthly plans are released to the departmental PPC’s. The role of the departmental PPC is very important as he has to interact with • CPPC PGP/FW/2007-09 DF79-M0477 . The CPPC will always release the plans according to the monthly requirement while the PPC has to break them down and proceed with the weekly or the fortnightly requirements for the parts. The function of the CPPC is to take the projected figure from marketing and then break it up in to aggregates. Figure-11: Central Production and Planning Control CPPC: The CPPC will take the individual figures for each of the vehicles and break them up in to numbers for various parts required for production. The PPC’s will then inform the procurement team as well as the logistics team about the scheduled quantities. These break ups are released by the CPPC on a monthly basis.Monila Dawar 21 market as the inventory holding cost per unit would be low. PPC: The departmental PPC’s play a very vital role as they are the one’s who will carry out the further break up and pass it along to the procurement team. PRODUCTION PLANNING AND CONTROL The marketing department at M&M passes the expected sales figure to the Central Production and Planning Control (CPPC).
They then have to ensure the smooth procuring of materials and also the efficient delivery so that the inventory levels are maintained. Actual production of the vehicles is handled by production. Procurement cell 2. The production department has to regularly track the inventory levels. PPC Thus SCM is divided on basis of functions i. Material disposal cell 4. increase productivity and also ensure proper output of vehicles according to the demand in the market. logistics cell 3. PRODUCTION SHOP FLOOR: The production department plans production based on the figure given by the marketing team. The production department has to consider a lot of factors when the production planning is done. Based on this the numbers given by the CPPC and hence the exact numbers required for production will alter. PROCUREMENT TEAM: Once the figures and the production plans have been made the details then have to be passed on to the procurement team.Monila Dawar 22 • • Procurement team Production (Shop floor) The role of the PPC is to inform the CPPC about the product availability and the available of production capacity. reduce the defects. It will also communicate those particular components which require further production. The PPC will then take inputs from the CPPC and release weekly or fortnightly plans. SCM of M&M Kandivli The four drivers of SCM in Kandivali are: 1. At every stage the costs are minimized by introducing various methods. The PPC releases the plans based on the responsiveness or efficiency required from the particular vehicles.e: PGP/FW/2007-09 DF79-M0477 .
Monila Dawar 23 1. Procurement cell The departmental PPCs break up the quantity depending upon whether it is required for a week or a fortnight and communicate it to the procurement team. PGP/FW/2007-09 DF79-M0477 . Any breakdowns or irregularities in the material flow will be managed by the procurement team. The firm schedule will not be altered in any case and the tentative schedule might change a little. The procurement team will continuously communicate with the suppliers and keep the flow of materials smooth. The communication channel of the procurement team is shown in the diagram. This is done in order to give the suppliers the information about what stock might be needed at which particular point in time. At this point the vendor response cycles will start. Daily the reports are tracked and the inventory levels monitored so that production time is not lost due to the non availability of materials. It is also the responsibility of the procurement team to set inventory targets for each type of part. The procurement team is always on the lookout for new suppliers and also the optimum size to be given to each supplier to maintain a proper balance of inventory supplier scheduling and supplier capacity. The PPC will give in a firm schedule and a tentative one. The procurement team will also communicate with the suppliers on behalf of the individual departments so that only they interact with the suppliers.
Inventories are being greatly reduced in M&M and this has ensured profitability by reducing the inventory carrying costs. 2. PGP/FW/2007-09 DF79-M0477 . This meant that if a supplier was common to two or more units then there would be multiple people interacting with him for the material. Also it meant that the costs would rise up as each unit would have their own logistics and ordering costs. Logistics The logistics for M&M is handled by a dedicated company called “Mahindra Logistics”.Monila Dawar 24 A few years ago each of the production units at M&M was a business unit and hence the procurement of materials would be handled by each department individually. The function of the logistics department is to negotiate terms with the contractors and co-ordinate with the transporters as to where the materials are and when will they arrive at the factory premises. The inventory management was also done by the individual units. One person will keep track of parts of similar type. The structure has changed and today the SCM team has a representative from each of the production unit. There is one person who coordinates between all the buyers (employees) and he is the one responsible of keeping track of the inventory and generating reports. He will communicate with all the suppliers who provide that part.
Scheduling milk run deliveries is a much more complex task than scheduling direct deliveries. Milk Runs Milk run deliveries are deliveries that bring products from multiple originating locations to a single receiving location. about the frequency of deliveries. Outbound logistics PGP/FW/2007-09 DF79-M0477 . The logistics was earlier looked upon by the Transport and Solutions Group (TSG).Monila Dawar 25 Allocating the vehicles to particular parts and products has to be done by the logistics department. Ex-works Here the costs of transportation of the goods are taken up by the company. The company will arrange for the transporter and keep track of the materials in transit. Decisions must be made about delivery quantities of different products. Free delivery In a free delivery format the supplier will bear the transportation and the logistics costs. and most importantly about the routing and sequencing of pickups and deliveries. The company does not have to pay for the delivery from its own pockets and hence the onus will be on the supplier to reduce his costs. This group has been made in to a separate company called Mahindra Logistics.
PPC – it has been explained above in the planning stage. performance. Vendor development Vendors are considered the best intangible assets of any manufacturing organization.Monila Dawar 26 Outbound logistics deal with the finished vehicles reaching the dealers. Vendor selection Just as in any manufacturing organization vendor development starts from vendor selection. financial conditions. These parts are procured from a large pool of suppliers scattered all over the country. As Mahindra and Mahindra being a 62 year old company. it has a large supplier base. This supplier base has been gathered over these years by the purchase personnel identifying the potential supply sources. Compared to last year there was 42% increase in revenue generation of scrap (773 lacs for the period of Apr-06 to Dec-06 against 543 lacs in the same period last year) 4. Hence both new and established vendors are subjected to a crucial evaluation to review their plant capacity. PGP/FW/2007-09 DF79-M0477 . etc Mahindra and Mahindra is an automobile industry manufacturing utility vehicles requiring 4500 parts to be assembled. There are three ways by which a vehicle can reach the dealer • • • By road (Convoy) By car carriers By rail 3. Material disposal cell Currently responsible for scrap contract finalization for 3 plants (Kandivli. So it is needless to say about the importance of vendor in this organization.Nashik and Igatpuri).
The supplier offering the best quality at lowest price and adhering to the delivery schedules is selected as the key suppliers. So assuring that the quality of raw materials is as per the requirement it is absolutely essential to evaluate vendors on this ground.in case of Mahindra and Mahindra they maintain inventory according to the rolling plans i. They have two key suppliers because 1 supplier does not have the production capacity to meet the requirements of the company. The first key supplier supplies approximately 60% of the material requirements and the other key supplier provides for the remaining 40% of the materials. fabric.Monila Dawar 27 Key supplier In M & M every raw material/part/component that they purchase has two key suppliers.plastic. emergency it is essential to have two key suppliers instead of one. Vendors are evaluated on the following basis: Delivery schedules. For example a product classified under ‘AX’ category should have the least lead time and a product under ‘BX’ category would have a relatively higher lead time.According to the classification of raw materials different categories require different lead times. Vendor evaluation It is essential to evaluate the vendors on various grounds as the qualityof the finished product-(in this case vehicles) will finally depend on the quality of raw material. the quality of the vehicle produced will be hampered. etc is not as prescribedthe final producti. Quality – in an automobile industry if the quality of the raw materials like the grade of sheet-metals. One way what M&M follows is a six sigma quality check analysis on the bought out parts and evaluate the vendor based on defects inparts per million. So vendors are evaluated on the basis of how efficient they are in adhering to the delivery schedules.e. As also in case of shortfalls. Lead time. The vendors have to comply with the PGP/FW/2007-09 DF79-M0477 .e weekly plans. So vendors need to supply materials at fixedand predetermined schedules.
The vendor is evaluated on the basis of his flexibility to adjust with any changes in the quantity. Flexibility. Hence inventory management is given so much importance. It also arranges for rewards and recognition wherein the top 10 suppliers are awarded. This helps a lot in developing good supplier-buyer relationship. Vendor motivation M& M tire to motivates it’s vendors by arranging for vendor meets wherein an official from M&M visits the vendors factory and appreciates them if satisfactory and tries to resolve issues with vendors if any. Improper ordering can eat in to the profits by increasing the inventory carrying costs. Vendor rating In M&M they do not have a vendor rating method as such provided that they have such a large supplier base it is difficult to rate them and they believe it to be an added cost to their balance sheet. INVENTORY MANAGEMENT Managing inventories is absolutely essential for any company.Monila Dawar 28 specified lead times given to them by M&M. So a vendor is evaluated on the basis of the lowest lead time offered and how efficiently does he adhere to the lead time agreed upon by both the parties. As also shares are given to the suppliers as a token of appreciation. Figure-12: Inventory management PGP/FW/2007-09 DF79-M0477 . But if there are not sufficient inventories it might result in to the loss of production for a firm. delivery schedule and or product/service design.
Apart from reducing the carrying costs this also means that the company has more money to invest and more liquid cash at their disposal. Total Productive Management: A few years ago M&M was experiencing a lot of production loss due to nonavailability of materials. While some of the material was not available other materials were being excessively stocked. Hence it was decided by the company to implement TPM. TPM was introduced all around the organization and all the employees were given guidelines which they had to follow in order for the implementation of TPM to be successful. This helps the company in maintaining the right levels of inventory and hence prevents excessive investment of money in the raw materials. monitoring and reducing inventory levels. The following two methods were used in order to manage inventory levels better • • Two Bin system Kanban system PGP/FW/2007-09 DF79-M0477 . It was also observed that the costs of buying the materials were very high and that in most of the modules the company was overstaffed.Monila Dawar 29 Each upstream element in the supply chain not only aggregates the inflated demand changes of all the elements fed by it but also overreacts to these demand changes and adds its own safety margins to take care of perceived fluctuations in future demand from downstream elements. This resulted in very high inventories of materials. Techniques like Just In Time (JIT) were introduced to maintain optimum levels of inventory and also to reduce the inventory costs dramatically. In the initial phases the TPM activities were meant to focus on the following activities Inventory reduction: Inventories were reduced by continuously measuring.
inventory costs and material handling costs 1. Jobs can be modified so that one person can take more responsibilities.Monila Dawar 30 1) Material Cost Reduction: Figure-13: Showing the cost management There are two types of costs associated with materials these are • Cost of materials (cost of ordering): Costs of materials include basic price. taxes and freight. job elimination and layout changes This is a way to ease out excess people from the organization. packing costs. Manpower reduction Manpower reduction was achieved through job clubbing. Unnecessary processes can be eliminated so that no employees are employed for carrying those out. • Cost on materials (cost of carrying): Costs on materials include Procurement costs. PGP/FW/2007-09 DF79-M0477 . M&M has done precisely that when they stopped inspecting the quality of the material coming in by putting more importance on the suppliers by making him accountable for his products.
SAP-SCM can take into account regional demand variation. A production plan for a month of finished products in the form of master production schedule is translated into requirements of components parts and raw materials working backward from the due date using lead times and other information hence. tools.Monila Dawar 31 Economic Order Quantity: EOQ for them is on full truck load basis. Basis and input on which MRP runs: Schedules: M&M's area offices update the demand plan on a weekly basis. But while determining the EOQ the inventory levels in the stores are also considered. tools required for the production of one particular part of the vehicle say engine or axle is termed as dependent demand inventories. parts. triggered by actual consumption at the plant end. M&M runs supply planning capability based on the changing demand pattern. PGP/FW/2007-09 DF79-M0477 . parts. etc. Material Requirement/Resource Planning (MRP-1): It is a computer based information system designed in M&M to handle ordering and scheduling of dependent demand inventories. Physical stock. They see to it that no transportation vehicle comes half empty and it is utilized to its full capacity. requirements of end items generate the requirements for lower level components which are broken down by weeks so that ordering production and assembly can be scheduled accordingly. using its optimizer capabilities to decide which plants will make what and synchronizing the procurement schedules. This way the suppliers can keep up-to-date on likely plant consumption. Raw materials. All material flow from the suppliers is pull based.it is the stock that is being seen on the system and which should tally with the physical stock in the stores of all the unused components. Vendors don't supply based on this information – the rolling plan only alerts them to what they should be prepared for. components. with results transmitted to MRP and posted to the private vendor Web sites.
They are then taken to the main assembly line for assembly. Also the materials can be protected from damage in this case.for the production of any one part of the vehicle (engine. STORES MANAGEMENT The store in M&M is decentralized with each production unit having their own stores. The truck unload the contents at this area which is also called as ‘dock’. wheel.it shows the number of raw materials which are more than the requirement and available in case of emergency. Receiving stores: the receiving stores is where the goods are received from the vendors by trucks. axle) the number of raw materials used for its production will be reduced automatically from the systems according to the number of units produced. Features of stores: • Stores are properly ventilated with tube lights and fans. Finished goods stores: finishedgoods stored in this case are the processed parts which are manufactured in the respective production units.All the bought out parts and work in progress inventories are kept in the stores. The bill of materials is the number of raw materials required for the production of 1 part of the vehicle. Main stores: main stores is where the raw materials are stored. Safety stock. PGP/FW/2007-09 DF79-M0477 . The stores are divided into 3 sections depending upon its functions1. The trucks directly unload the contents into palates. All the stores in each of the units are next to the road so that loading and unloading becomes easier. If for example manufacturing an engine requires 450 parts but bill of materials accounts for only 440 parts then the system stock and the actual stock would not tally leading to shortfall in inventory.Monila Dawar 32 Bill of materials. 2. 3. The COMB type layout is followed in the main stores.
as well as with processing machines. overhead travelling cranes etc. difficulty to monitor material flow etc. chipping. conveyors. In this method materials are issued at actual cost and are valued also at the same cost by keeping an account of the receipt of all the raw materials. Stock verification Stock verification is done once a year on 31st January. dents etc. PGP/FW/2007-09 DF79-M0477 . breaking. handling problems like scratches. reduces lot size. On this day the production is stalled. Increased competition increases variety of components (for product customisation ). they were adequate in mass production with limited variety or low volume production. Since the logistics now become complex. All the employees from all the departments then engage themselves in stock verification. Thus they follow fixed or periodic inventory method. assembly stations. Material handling Material Handling Equipment in M&M traditionally consisted of trolleys. inspection devices. However. • The materials are kept in racks. varies product mix continuously ( pull type manufacturing ). Stock valuation They follow actual price method of stock valuation for raw materials wherein oldest stock is issued first. These had limitations like low speed. forklifts. a lot of manual intervention was involved. material procurement and dispatch is halted. Accordingly more lights are provided. With transformation of manufacturing systems to be lean. agile and highly automated. Customers were tolerant of defects like scratches. there is a tendency to INTEGRATE material handling systems so that they can communicate with each other .Monila Dawar 33 • They use an instrument that measures luminosity in the evening. things are changing. These were primarily devices of Mechanisation. the entire SAP system is closed.
It helps in quick and easy movement of a lot of items than individual items. According to them material handling equipment should be such that it helps in reducing the manufacturing cycle time and minimum fatigue is required.Monila Dawar 34 In M& M they have these aisles i. PGP/FW/2007-09 DF79-M0477 . Moreover they have a stores department in each production unit which helps to reduce the material handling costs. • The concept of unit load is being depicted by keeping boxes of same materials under palates and them systematically arranging them one above the other. • Lastly for all the material handling equipments they give proper training to their personnel to avoid any mishaps and to carry out safe operations. • • For glass equipments they a separate storage space. Thus the number of items or bulk material is so arranged that mass can be picked up and moved as a single object.e roads constructed inside the plant for identification of safe and danger zones Red aisle: it is put for personnel/goods movement Green aisle:it is put where machines/production/assembly takes place Yellow: it is usually used as borders to distinguish clearly between red and green aisles Features of material handling • In M&M plant a mezzanine floor has been put up all over the stores and it is fire resistant. It also helps in optimum usage of the floor space.
Every need was catered to. Engineers that were handpicked from across the country. out of your needs. A lot of research and development has gone into bringing the Mahindra Xylo from the drawing board to 'on road'. every requirement met. And every manufacturing process has been optimised to handle this special car's special requirements. These engineers spent time with customers across the country. And once the interiors were done. The Mahindra Xylo was meant to be built around you. observing their interaction with vehicles. the exteriors began. Each of them regarded as an expert in their own field of automobile development. It meant determining the needs of our consumers. Like the body assembly procedures that are fully automated to ensure incredible levels of accuracy. And the result was India's first car to be built inside out. So you can be sure that extra thought and effort have gone into making the Mahindra Xylo perfect in every way E2 Exterior • • Ski rack – (N/A) Body coloured electric Outside rear view mirrors –BLACK (stalk) PGP/FW/2007-09 DF79-M0477 . And it took 160 engineers to do just that. They identified need gaps and invented solutions to fill in these gaps.Monila Dawar 35 MAHINDRA XYLO Making the Mahindra Xylo meant challenging the limitations of every car before it. And pioneering technologies to meet those needs.
Monila Dawar 36 • • • • • • • Fog lamps – (N/A) Rear fog lamps – (N/A) Wheel Cover – (silver painted) Side body cladding – (N/A) Coloured Bumpers– (N/A) Coloured Grill – (N/A) Coloured Handles & outside rear view mirrors & footstep end caps – (N/A) • Rear wash & wipe (rear wiper) – (N/A) Interior • • • • • • Digital Clock Digital Drive Assist System – (N/A) Roof console for spectacle holder – (N/A) Mobile charging points (front on IP) Courtesy lamps (1+1) Rear glass embedded antenna – (N/A) Seat & Interior Trims • • • • • • • • Theatre Style Seating (8) Flat bed front seats Armrest for driver and co-driver – (N/A) 3 position lumbar support for front & middle captain seats – (N/A) Height adjustable driver seat Foldable flight trays – (N/A) Foldable arm rest in the middle and last seat with utility space – (N/A) Seat material made of PVC PGP/FW/2007-09 DF79-M0477 .
Monila Dawar 37 • 8 front facing seats Safety • • • Tubeless tyres intellipark reverse assist – (N/A) Engine immobilizer (Transponder based) Comfort & Convenience • • • • • • • • • • • • • • HVAC Surround cool dual AC’s – (N/A) Floor console (half) Power steering Puddle lamp on front & rear doors – (N/A) Tilt steering Keyless entry – (N/A) Central locking Illumination ring Power window Power window express up/down (driver side) with anti-pinch – (N/A) Two DIN audio system – (N/A) Rear defogger – (N/A) Electric remote fuel lid opener E4 Exterior • • • Ski rack – (N/A) Body coloured electric Outside rear view mirrors –BLACK (stalk) Fog lamps – (N/A) PGP/FW/2007-09 DF79-M0477 .
8) Flat bed front seats Armrest for driver and co-driver – (N/A) 3 position lumbar support for front & middle captain seats – (N/A) Height adjustable driver seat Foldable flight trays – (N/A) Foldable arm rest in the middle and last seat with utility space – (N/A) Seat material made of fabric with PVC insert 8 front facing.Monila Dawar 38 • • • • • • Rear fog lamps – (N/A) Wheel Cover .Cap Side body cladding Coloured Bumpers– (N/A) Coloured Grill – (N/A) Coloured Handles & outside rear view mirrors & footstep end caps – (N/A) • Rear wash & wipe (rear wiper) Interior • • • • • • Digital Clock Digital Drive Assist System – (N/A) Roof console for spectacle holder Mobile charging points (front on IP) Courtesy lamps (1+1) Rear glass embedded antenna – (N/A) Seat & Interior Trims • • • • • • • • • Theatre Style Seating (7. 7seater (captain seats) PGP/FW/2007-09 DF79-M0477 .
Monila Dawar 39 Safety • • • Tubeless tyres intellipark reverse assist – (N/A) Engine immobilizer (Transponder based) Comfort & Convenience • • • • • • • • • • • • • • HVAC Surround cool dual AC’s Floor console (half) Power steering Puddle lamp on front & rear doors – (N/A) Tilt steering Keyless entry Central locking Illumination ring Power window Power window express up/down (driver side) with anti-pinch – (N/A) Two DIN audio system – (N/A) Rear defogger – (N/A) Electric remote fuel lid opener E6 Exterior • • Ski rack Body coloured electric Outside rear view mirrors – Electric (Body Coloured) • Fog lamps PGP/FW/2007-09 DF79-M0477 .
Cap Side body cladding – Body Coloured (Steel insert) Coloured Bumpers Coloured Grill Coloured Handles & outside rear view mirrors & footstep end caps Rear wash & wipe (rear wiper) Interior • • • • • • Digital Clock – (N/A) Digital Drive Assist System (limited info) Roof console for spectacle holder Mobile charging points (front on IP and middle on centre console) Courtesy lamps (1+1+2) Rear glass embedded antenna Seat & Interior Trims • • • • • • • • • Theatre Style Seating (7) Flat bed front seats Armrest for driver and co-driver 3 position lumbar support for front & middle captain seats Height adjustable driver seat Foldable flight trays – (N/A) Foldable arm rest in the middle and last seat with utility space Seat material made of fabric with PVC insert 7seater (captain seats) Safety PGP/FW/2007-09 DF79-M0477 .Monila Dawar 40 • • • • • • • Rear fog lamps Wheel Cover .
Monila Dawar 41 • • • Tubeless tyres intellipark reverse assist Engine immobilizer (Transponder based) Comfort & Convenience • • • • • • • • • • • • • • HVAC Surround cool dual AC’s Floor console Power steering Puddle lamp on front & rear doors Tilt steering Keyless entry Central locking Illumination ring Power window Power window express up/down (driver side) with anti-pinch – (N/A) Two DIN audio system Rear defogger Electric remote fuel lid opener E8 Exterior • • Ski rack – (N/A) Body coloured electric Outside rear view mirrors – Electric (Body Coloured) • • Fog lamps Rear fog lamps PGP/FW/2007-09 DF79-M0477 .
8) Flat bed front seats Armrest for driver and co-driver 3 position lumbar support for front & middle captain seats Height adjustable driver seat Foldable flight trays Foldable arm rest in the middle and last seat with utility space Seat material made of fabric 8 front facing.Monila Dawar 42 • • • • • • Alloy wheels Side body cladding – Body Coloured (Steel insert) Coloured Bumpers Coloured Grill Coloured Handles & outside rear view mirrors & footstep end caps Rear wash & wipe (rear wiper) Interior • • • • • • Digital Clock – (N/A) Digital Drive Assist System Roof console for spectacle holder Mobile charging points (front on IP and middle on centre console) Courtesy lamps (1+1+2) Rear glass embedded antenna Seat & Interior Trims • • • • • • • • • Theatre Style Seating (7. 7seater (captain seats) Safety • Tubeless tyres PGP/FW/2007-09 DF79-M0477 .
Out" philosophy signifies that the Xylo has been crafted around the need of our Customers for a Luxurious. Xylo has been Co-created with Customers. The Project team members have at every stage of the Project interacted with Customers understanding the Value benefit for everything which has gone in the making of the Xylo. Understanding & fulfilling the latent needs of our target customers has been the development plank of Xylo.Monila Dawar 43 • • • intellipark reverse assist Engine immobilizer (Transponder based) ABS (Anti-lock Braking System) Comfort & Convenience • • • • • • • • • • • • • • HVAC Surround cool dual AC’s Floor console Power steering Puddle lamp on front & rear doors Tilt steering Keyless entry Central locking Illumination ring Power window Power window express up/down (driver side) with anti-pinch Two DIN audio system Rear defogger Electric remote fuel lid opener What is that '1 big' design philosophy which was adopted for Xylo? Driven by our Mantra of Customer Centricity. comfortable Car which makes a Style statement which the new PGP/FW/2007-09 DF79-M0477 . The whole approach of designing the vehicle basis an "Inside .
This engine has been fine tuned for better drivability and updated with other technological advancements like Hydraulic Lash adjuster and Auto tensioner. Apart from Virtual Validation we also have tested the vehicles for "Real World Usage Profile" across the world from extensive trials throughout India to South Africa. We have followed Global Product development practices like . of Technology & of Melodious sound. of High Fashion. What all engines are expected to be offered on Xylo? Mahindra Xylo would be powered by m-Eagle CRDe engine. it was coined as a Project name and was inspired by one of our Customer Centric initiative called "Ingenious Drive" which was at full stream when this Project was announced. This coupled with having World . What level of testing & validation has been carried on the Xylo? For Xylo we did a lot of upfront "Virtual Validation" with over 1500+ CAE simulations for "First Time Right Design & Development". What does the new Brand name mean & its significance? Xylo is trendy & contemporary."QFD" in which Project team members closely interact with Customers backed by a lot of research to understand the un-stated needs of the customers and have subjected all elements thru a "ReFinE" process which helps deliver an emotional connect with the Customer. Though in case of Scorpio we did continue with the Project name as the Brand name as it made terrific sense in continuing with the Project name given the Product values & positioning. All the lessons learnt from our earlier Projects were also incorporated in the making of the Xylo.Monila Dawar 44 age Customer seeks to make.Class Vendor partners on board early in the Project has helped us develop the Product in a true Global sense. It has multiple connotations of a Planet. In this case we believe that Xylo has perfect fit with what values the Product would offer to its Customers. of Space travel. an engine from NEF CRDe family. Germany and many other countries to expose the vehicle to extreme PGP/FW/2007-09 DF79-M0477 . Why is the Product not being called Ingenio? Ingenio was never to be the Brand name.
Has Xylo been designed for the Global markets and would it be launched across the World? Xylo has been Co-created with Customers from all the Target countries. Project team members have traveled and conducted over 1100+ customer interactions. E4.Monila Dawar 45 conditions. The prefix E is drawn from the Engine name m-Eagle. E2. PGP/FW/2007-09 DF79-M0477 . Xylo would definitely help us consolidate our position. We are currently evaluating which all markets would we be launching the Xylo in. E6 and E8. Over 100 prototype vehicles have covered nearly a million kms of stringent testing & validation. In overseas markets where we already have a presence. How many variants are expected? Xylo is being launched in 4 variants. This coupled with Global development practices like QFD supplemented by a ReFinE process have helped us create a true Global vehicle. Spending a "Day in the Life" of the Customers to understand and deliver the latent needs of the customers.
there is a lot more we can do. A brand is how your key constituents. Based on the premise that brand can have the personalities in much the same way as humans. employees.” Some brands are of such great importance to people. Brand personality is seen as valuable factor in increasing brand engagement and brand attachment. brand personality describe brands in terms of human characteristics. in much the same way as people relate and bid to other people. experience what you do.customers. Because many people interact with brands as though they were other people.Monila Dawar 46 BRAND PERSONALITY A brand is “a set of expectation and association evoked from a company or product. Brand personality refers to the set of human characteristics we associated with the brand. age and socioeconomic class. it includes such characteristics as gender. Some would say that these brands have their own personality. approachable and trustworthy. However. which can be defined as “the set of human characteristics associated with a given brand”. it is important to understand what a brand personality consists of. Knowing and understanding the brand personality gives a good insight into this relationship. that we speak of them as a part of one’s life and identity. and how its characteristics can be used to affect the relationship between the brand and its user. for example: caring. Much of the work in the area of brand personality is based on translated theories of human personality and using similar measures of personality attributes and factors. shareholders etc. as well as such classic human personality is both distinctive and enduring. being used to express one. Thus. what would he/she be like?” we then list and group the traits to describe the brand as. A common way of determining this is to reply on the metaphor: “If the brand was a person. the brand personality. VALUES AND CHARACTERISTICSS OF BRAND PERSONALITY PGP/FW/2007-09 DF79-M0477 . and is also as important guide to communicating the brand. and into peoples’ attitudes towards the brand.
many value/beliefs and characteristic that a person may have. It is these likeable values and characteristics that people are inevitably attracted. trustworthiness. It is not surprising that the service level of company B can be better experience for customers than that of company A. how would you describe them?” their replies were: Table-2: Replies of the company as people Company A Sophisticated Arrogant Efficient Self. it is also easy to conclude that if PGP/FW/2007-09 DF79-M0477 . but more of a behavior. Many people believe in being honest in everything they do and say. and other personality characteristics they develop. friendliness. To illustrate how people think in personality terms when making judgments about brands. When asked question: “if these companies are people. here are the results of consumer research into how people feel about tow companies. caring. This is not a belief. of course. If you were asked of these two companies you would like to be your fiends.centered Distant Disinterested Company B Easy going Modest Helpful Caring Approachable Interested These two companies are actually competitors in a service industry. but there are some that are particularly likeable. you would probably choose company B. Examples of these include dependability. and these can be used for putting personality into brands. as did 95% of other respondents. An example of characteristic is confidence.Monila Dawar 47 People’s personalities are determined largely through the value and beliefs they have. There are about two hundred words that describe personality characteristics. and fun-loving. An example of value or belief is honesty. honesty. There are. reliability.
One explanation fort this can be found in the theories of animism. Thus. which suggest that there exists need by people to anthropomorphize objects in order to facilitate interaction with the nonmaterial world. Anthropomorphize occurs when human qualities are attributed to non human objects. Everyone has views about themselves and how they would like to be seen by others. or to those whom they admire. then the brand image of company B will be much better than company A. The Creation of Brand Personality Brand personality traits are formed and influenced by any direct or indirect contact that the consumer has with a brand. Consumers easily assign personality quality to inanimate objects like brands in thinking about the brands as if they are human characters. personality traits are associated with a brand by the people associated to that brand. Associations with the company employees or CEO and the brand’s product endorsers are also direct ways by which brand personality traits are formed and influenced. One direct way to form and influence brand personality is user imaginary. User imaginary is defined as the set of human characteristics associated with the typical or stereotype user of the brand.g. e. creating brands with personalities similar to those of a certain group of consumers will be an effective strategy. brands. The theories of animism describe PGP/FW/2007-09 DF79-M0477 . And they tend to like personalities that are similar to theirs. it is simply a collection of perception on the mind of the consumer. the greater will be the willingness to buy the brand and deeper the brand loyalty. A further point of interest arising out of this research is that people tend to prefer brands that fit their self-concept. Consumers accept the marketing actions to humanize brands.Monila Dawar 48 customers consistently experience these differences between the two companies. In a direct way. cannot think. A brand. The personality traits that of the people associated with a brand are transferred directly to the brand. unlike a person. The closer the brand personality is to the consumer personality (or one which they admire or aspire to). feel or act. A brand has no objective existence at all.
This is achieved with the help of the marketing actions. 2004). The brand-person associations can also have a more personal nature. the personalities of the spokesperson are transmitted to the brand. used an all phases of the brand communication. and product form (solid/liquid. the consumer put more efforts in creating and using the brand personality. especially advertising. benefits). namely the role of a brand PGP/FW/2007-09 DF79-M0477 . the brand character of M&M in the M&M commercials has the capacity to laugh and joke. symbol.“its price (high or low. Brands can be associated with person who use or used that particular brand. shape). Spokespersons that are used in advertising can have personalities that fit those of the brand they advertise. Thus. Indirectly.Another form of animism explains how brand personality is created in a more indirect way. this aspect is much less under the control of the marketers.Monila Dawar 49 another process mechanism that directly explains the specific ways in which the vitality of the brand can be realized (Fournier. odd or even). Over time. and media advertising”. size. Lehman and Singh suggest that the personality of a brand is created over time. another perspective of brand personality can be examined. packaging details (color. retail store location (imaginary associations). sales promotion.). Human qualities of emotionality and thought are transferred to the brand. material. A further advantage of brand personality is that life is given to a brand. This form of animism involves complete anthropomorphization of the brand object itself. for example a close friend or a family member. brands received as gifts can also be associated with the person from whom the gift was received. by the entire marketing mix of the brand . Also. By vitalizing a brand. Betra. These person associations serve to animate the brand as a vital in the minds of the consumers. product formulation (ingredients. consumers are able to differentiate between brands. Brand personality encourages more active processing on the part of the consumer. Another advantage is that the consumer can interpret the brand’s image in such a way that it is personally more meaningful. For example. Etc. the brand personality is created by all the elements of the marketing mix. One of the advantage of the brand personality is that based on their distinctive personalities. Obviously.
Next we will concentrate on these consumer-brand relationships.Monila Dawar 50 as relationship partner in a consumer-brand relationship. For Levis the results is a master brand personality that is: Original Masculine Sexy Youthful Rebellious Individual Free American A related byproduct brand personality (for a specific customer group) such as Levi’s 501 jeans is: Romantic Sexually attractive Rebellious physically prowess PGP/FW/2007-09 DF79-M0477 . There are various ways of creating brand personality. who research their target audience fastidiously. One way is to match the brand personality as closely as possible to that of consumers or to the personality that they like. the company has to decide what personality traits the brand is to have. Whether the brand is a product or a company. want and like Build a consumer personality profile Create the product personality to match that profile This type of approach is favored by companies such as Levi Strauss. The process will be Define the target audience Find out what they need.
AT&T. and it as all too common far a major dominate brand to see as strongly and old fashioned. The approach is ideal for brands that adopt a market-niche strategy. PGP/FW/2007-09 DF79-M0477 . for example.Monila Dawar 51 Resourceful Independent Likes being admired Both profile appeal mostly to the emotional side of the people’s minds. User imaginary can be powerful driver of brand personality. Sponsorship – activities such as events sponsored by the brand will influence its personality. youthful personality will targeted sponsorships that have included the Freestyle Ski World Cup in Breckenridge. Swatch. and Saturn tend to have younger brand personalities than brand such as IBM. a brand for older people. the first International Age – how long a brand has been on the market can affect its personality. and Chevrolets. This profiling approach aims to reinforce the self-concept of the consumers and their aspirations. Non product related brand personalities drivers User imaginary – user imaginary can be based on either typical users (people you see using the brand) or idealized users (as portrayed in advertising and else were). The upscale personality of Mercedes and the sexy. strongly independent brand personality driven by it user imaginary.to their feelings and sensory function. MCI. and can be extremely successful if a market segment has a degree of global homogeneity. reinforces its offbeat. sophisticated personality of Calvin Klein are similarly influenced by user imaginary. in part because the user is already a person and thus the difficulty of conceptualizing the brand personality is reduced. For example Charlie has a feminine. as is the case with Levis. Thus new entrants such as Apple.
Practical decisions need to be made about not only advertising but packaging. promotions. can serve as the foundation for meaningful differentiations. which events to associate with. some brands become vehicles to express a part of their self-identity. the Michelin mans all helps to create and reinforce a personality for their brands. Contributing to a differentiating identity: Strategically. Why use brand personality? The brand personality construct can help brand strategies by enhancing their understandings of people’s perceptions of and attitude towards the brand. Crating brand equity: The brand personality creates brand equity. contributing to a differentiating brand identity guiding the communication effort and creating brand equality. a brand personality. Guiding the communication effort: Tactically the brand personality concept and vocabulary communication the brand identity which richness and texture to those who must implement the identity building effort. Advertising agencies such as Young & Rubicam and Ogilvy & Mather routinely include a brand personality statement as a part of their brand positioning strategy. The self-expression model explains this. and the style of person interactions between the customer and the brand. People express their own or idealized PGP/FW/2007-09 DF79-M0477 . feelings and relationship can be identified that often provide more insight than is gained by asking about attribute perceptions. Apples bitten apple. Enriching understanding: The brand personality metaphor can help a manager gain an in-depth understanding of consumer perceptions and attitudes towards the brand.Monila Dawar 52 Symbol – a symbol can be powerful influence on brand personality because it can be controlled and can have extremely strong associations. as a part of a core or extended identity. By asking people to describe a brand personality. the Marlboro cowboy. The model says that for certain groups of customers.
In other words. of course. the differentiation is more on the emotional pay-off. while advertising for entry level or smaller cars tends to focus more on the rational or functional benefits of the vehicles. PGP/FW/2007-09 DF79-M0477 . helps build up show off. Generally. varies from the segment to segment and also on how long a particular model has been in the market. The advertising would also vary according to the segment which one is targeting.Monila Dawar 53 identity in a variety of ways. marketer are increasingly differentiating on the emotional pay-off a particular car model/brand provides to the customer. A car. admire. options. The positioning goes well with the companies catch lines of “for a special journey called life”. the differentiations is increasingly on the emotional benefits when it comes to high end cars. People buy car as an extension of their personality rather than just features. the Chevrolet Optra ad (which depicts a young husband driving his wife to see the moon on the occasion of Karvachauth) shows an Optra consumer as someone who believes in family values and indulging loves ones. attitudes. in India. and generic benefits (such as space or fuel efficiency) of a particular car segment hardly a distinguishing factor between car models. by indulging love ones”. discuss.” he says. This. buy and use also provide a vehicle for self-expression. For instance. activities and lifestyles. social esteem value. for not being able to spend enough time. it has been seen as one move up the value chain. For instance. such as a job choices. are you the Hyundai accent owner who commands immediate respect wherever she goes (including fro the potential father-in-law) or are you the suave executive from the Chevrolet ad who is ever ready to share a moment with loved one? With a plethora of new models in the market. Brand that people like. Brand personality of cars Are you what you drive? That is what are companies seem to be asking and in the same breath trying to convince you about. “I find that typically profile of an Optra consumer is someone who is in the age group of 35-45years and has a chauffer. He buys a car not only for himself but also for the family and tries to make up.
The perception of the car in terms of its performance and design. Interestingly. image building does come higher in the consumer’s scheme of priorities when buying a new car than ever before.the josh machine made a tremendous impact on consumers in offering to satisfy a clear need. through its advertising. PGP/FW/2007-09 DF79-M0477 . Contemporariness of model has a big impact on purchase decision. the strategy marketer follow changes a bit when it comes to addressing the smaller car category with the rational benefits of a brand tending to be the focal point of the campaign. Skoda Auto India. quality. attempts to connect with its consumer on emotional level.Monila Dawar 54 High end car maker Skoda auto too.” says Shashank vaid. imageconscious and even bit a macho.” As long as advertising for cars is strongly differentiated and sharply positions the model and at the same time satisfies a define need segment. “Car is the extension of the personality and our advertising shows the consumer to be youthful. At the segment level. apart from brand image. after sales. “One good example of this is Ford Ikon. cost of ownership. sales. This changes as we move up since in case the consumer has been with the category for a longer time and hence it is important t to talk of an emotional pay off. businessman or someone in the senior management. Surely. indicating the relevance of brand among the more expensive market segments. One can see some more of this with a recently launched premium hatch back as well”. the increase in importance is greater for the mid-size cars. primarily male. The importance of brand image has risen sharply in the last few years. manger (marketing). The target Skoda consumer is a SEC A1. it shall have the capability to break the clutter and creates a unique and compelling reason for consumers to purchase. The manufacturer need to focus more o how consumers perceive them as offering exciting cars and being committed towards them. all impact upon the purchase decision. “We have found that typically a buyer for a smaller car (sub Rs 4 lac) looks for aspects such as reliability and fuel efficiency. The campaign jointly made by Skoda’s marketing department and ad agency IB&W not only communicates the quality of the brand but an appreciation for the finer things in life.
But then two things happenedthe product found acceptance in the market and the competition came up with similar product in the market. Among the three. PGP/FW/2007-09 DF79-M0477 . and good influence premium mid-size buyers. the rational benefits magic is not always applicable. the advertising of which has evolved over the years from initially conveying mainly the functional benefits of the model to connecting with the consumer on an emotional level now. innovation. which does have an impact on the decision on a particular make and model of car. consumers would have to think as a bevy of new models flood the Indian market. It ends with the voiceover telling us that Maruti Suzuki is most fuel-efficient car.” The ad cleverly conveys that the car just keeps going on and on. we started with the positioning if the car being a complete family car which was completely rational positioning. and fuel efficiency is relatively more important to them. One reality for us in India is that the market is extremely price/value conscious. Technology. While making purchases based on above. Take the case of Hyundai Santro. product quality has the highest correlation with brand image. petrol khatam hi nahin Honda. “papa ki Kara. quality. However in the small car segment. Be it rational or an emotional decision. Brand image is not driven by good advertising alone but is significantly impacted upon by the cars performance and design. “When we launched the Santro. and the cost of ownership. Small car buyer seeks capability in advertising.Monila Dawar 55 A case in point is the Maruti 800 campaign in which the kids who is playing with a toy Maruti 800 exclaims to his dad (when asked how long will he keep on running the car). there is rational side.
which should be in precise terminology as possible. Research question The research question specifies the information the decision making needs. Scope or boundaries of the research Defining the scope of the research or the research boundaries ensures the desired precision or accuracy of the result. of what information is needed. but efforts should be made. Development of hypotheses implies generating basically alternative answers to research questions. that is convert the research problem. The researcher question asks what specific information is required to achieve the research purpose. The research determines which of these alternative answers is correct. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied. then the information should aid the decision maker. If the research questions are answered by the research. Development of hypothesis A hypothesis is a possible answer to a question.Monila Dawar 56 ChapterOBJECTIVES AND RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY The research objective is a statement. or answer the research problem. Research objective have three components. It is not always possible to develop hypotheses. The responsibility of the researcher is to make the researcher question as specific and precise as possible. The researcher’s responsibility is to restate the initial variables associated with the decision problem. in the form of one or more key question formats• • How What PGP/FW/2007-09 DF79-M0477 .
The project is analyzed the demographic.Monila Dawar 57 • • • Where When Why OBJECTIVES OF THE RESEARCH The research objectives for the thesis undertaken can be defined as follows: • To determine the demographic variables of the customers of different brands of cars. employees etc. • Ultimately have to carve out the result that “how to increase sales of Mahindra and Mahindra automobile”. • • • Examine the customer perception about the cars. The research tracks responses at following two layers 1. SIGNIFICANCE OF THE STUDY A brand is a set of expectations and associations evoked from company or product. A brand is how key constituents. It includes the detailed study of customers focusing on the various parameters that lead to identifying and understanding the perception of the customer in buying the car brands. Dealer related parameters • To analyze the psychographic variables of the customers of different brand of the cars. experiences what you do. Product related parameters 2. psychographic and buying characteristics of the customers in buying the car. SCOPE OF THE STUDY It is aimed to study the car market and buying behavior of the customer. Some brands are of such great importance to PGP/FW/2007-09 DF79-M0477 . To judge the satisfaction level of car owners of different brands.customers.
planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Because many people interact with brand as though they were other people. which can be defined as the set of human characteristics associated with a given brand. being used to express one. Some would say that these brands have their own personality. recommendations and ultimate actions. and is also an important guide to communicating the brand. Research studies evolve through a series of steps. focus PGP/FW/2007-09 DF79-M0477 . An example is information gathered by a questionnaire. Consists of original information that comes from people and includes information gathered from surveys. that we speak of them as a part of one’s life and identity. and into peoples’ attitudes towards the brand. RESEARCH METHODOLOGY A research process consists of stages or steps that guide the project from its conception through the final analysis. PRIMARY DATA New data gathered to help solve the problem at hand. Qualitative or quantitative data that are newly collected in the course of research. This becomes significant as consumers move up the value chain from small compact cars to midsize and upwards. each representing the answer to a key question. Knowing and understanding the brand perception gives a good insight into this relationship. Like apparel and lifestyles brands. like: Mercedes. The research process provides a systematic. and how its characteristics can be used to affect the relationship between the brands and its users. a car is extension of one’s perception. The brand perception. People buy cars which either matches their personalities or those which provide them opportunities of being perceived as somebody they aspire to be. As compared to secondary data which is previously gathered data. it is important to understand what a brand perception consists of. which can easily be associated with high status and affluent owner.Monila Dawar 58 people.
Published.Monila Dawar 59 groups. Researching information which has already been published. or it can be research conducted by someone else. Market information compiled for purposes other than the current research effort. PGP/FW/2007-09 DF79-M0477 . trade publications. observation or experimentation. Sources include census reports. vital statistics. Data that have already been collected and published for another research project (other than the one at hand). This is contrasted to secondary data which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys. There are two types of secondary data: internal and external secondary data. like medical records. government. Primary data is basically collected by getting questionnaire filled by the respondents. having been collected for another purpose. Data that have already been collected for some purpose other than the current study. independent observations and test results. already available data that comes from pre-existing sets of information. such as a market research company or the U. and subscription services. it can be internal data. such as existing sales-tracking information. Information compiled inside or outside the organization for some purpose other than the current investigation. SECONDARY DATA Information that already exists somewhere. Data gathered by the researcher in the act of conducting research.S. prior research studies and archival data.
Monila Dawar 60 Rese Figure-14 PGP/FW/2007-09 DF79-M0477 .
increase in disposable income seems to be the most important reason for buying a car. status. This trend is reflected in the growth of the Per capita Disposable income and consequently the growth of the Indian automobile industry especially in the B and C segment cars.Monila Dawar 61 ChapterFINDINGS AND ANALYSIS Q1. the growing family needs like working partners. 25 20 PGP/FW/2007-09 15 DF79-M0477 . Similarly. Why you bought your present car? Please rank from the highest order of preference 40 35 39 30 Figure-15: Motives of buying a car Interpretation: As per the analysis shows. increasing family size. add to the motives of buying a car. etc.
This is the reason for sticking to a particular segment till the next substantial rise in the personal disposable income. Though the Indian car industry is among the fastest growing car markets of the world still the Indian psyche is too complex for the manufacturers to understand. The most important reason for buying a car when it comes to B and C segment cars seems to be ‘value for money’. This explains the reason for the stagnant or sudden growth in sale of B and C segment cars just before budget and near occasions like Diwali. best services and best repute all bundled in one with the best deal they can strike.Monila Dawar 62 Q2. This reason is followed by ‘Value for money’ where the customers look for the best product. 32% of the respondents suggested that affordable prices are the most important factor while purchasing a car. PGP/FW/2007-09 DF79-M0477 . You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your preference) Figure-16 Interpretation: Indian market is still the hard nut to crack for most of the automobile manufacturers.
4 = Satisfied. almost all cars get a mixed response in this segment as far as the interiors are concerned. However. armrests etc are few of the options which count for the interiors. 3 = Neutral. comfortable and exotic the interiors are more are the chances spend billions of dollars every year on R&D to continuously improve the interiors of their cars. Moreover. 5 = Highly Satisfied In 100% 3 80% 3 1 Figure-17 3 1 1 Interpretation: Interiors play a very important role in deciding the sale of a of its being popular among the customers.t. leg room. PGP/FW/2007-09 4 60% 3 3 3 40% 4 DF79-M0477 4 . Similarly.r. Seats. its counterparts on the account of music system installed. M&M Pessenger Car fares badly on this front. 2 = Dissatisfied. Overall.Please rate your existing car in terms of understated Interior Design features on a scale of 1 to 5 where 1 = Highly Dissatisfied. As the analysis show Getz scores substantially high w. dash board.Monila Dawar 63 PRODUCT SATISFACTION LEVEL Q3. Indica V2 races far ahead as far as leg room is concerned. For this reason manufacturers 4 4 Level of satisfaction car.
armrests at the back seat etc. However. 60% 4 4 4 3 4 4 40% 4 20% 4 0% 4 4 4 4 PGP/FW/2007-09 DF79-M0477 no go m . one striking point observed here are that almost every car fares neutral on the adjustable front seat headset.it seems that it has taken it from ‘D’ segment cars. Talking about Mahindra and Mahindra’s Xylo it has a perfect blend of interior.A lavish interiors are always a akin for good selling. come with attached music systems (Verna fares the best among all cars on this front) combined with luxury features like TV screens.Monila Dawar 64 Custom 100% 3 3 3 Satisfaction level ( in %age) 80% 3 3 3 Figure-18 Interpretation: As one can see most of the respondents are quite happy with the interiors of their respective cars. These cars have more leg room.
Monila Dawar 65
Q4. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5
Customer Satisfaction Level ( %age)
90% 80% 70% 60% 50% 40% 30% 20% 10%
Interpretation: It can be noted Passenger Cars Getz ,Swift and Indica V2 fight neck to neck on almost every front, with Indica marginally better in features like crossbars under the dashboard and Anti Brake systems. Most of the cars in this segment fare relatively similar and very close to each other on most of the fronts.
3 3 1 4
Monila Dawar 66
100% 90% 80% 3 3 4
Customer satisfaction level
70% 60% 50% 40% 30% 20% 10%
Interpretation: As one can see most of the respondents are quite happy with the safety parameters of their respective cars. However, one striking point observed here are that almost every car fares neutral on the safety parameters.
Monila Dawar 67
Q5. Please rate your existing car in terms of following parameters
Customer Satisfaction Level ( %age)
90% 80% 70% 60% 50%
Interpretation: The customer choice of the car highly depends upon the performance and maintenance costs of the car. This is the reason why this class of parameter was chosen for this study. And the results show that Hyundai Passenger Car’s could give hints as how to increase pickups, stability at high speeds and optimum fuel efficiency. M&M Passenger Car can fare out as the best car in its segment as most fuel efficient car of all. 40%
3 Similarly, M&M Passenger Car fares the best on the terms like mileage but it
lags behind with few. So this segment shows a mixed bag of response for the Fuel efficiency and30% parameter. Indica V2 performs consistently on all mileage the parameters and Getz fares really well on pick up whereas it fares badly on fuel consumption. Considered this condition for Getz it should be seen as a
20% red signal for the manufacturers so that Getz does not end up being like Fiat’s
Palio famous as a car for ‘drinking petrol.
Indigo fares as the best car in terms of fuel efficiency. Baleno fares a little bit behind than its counterparts as far as the stability at high speeds and mileage is concerned. Most of the cars are fuel efficient with respect to their weights and pick ups. 3 4 3 3 PGP/FW/2007-09 DF79-M0477 .Monila Dawar 68 Customer Sat 100% Customer Satisfaction Level ( in %age terms) 90% 4 80% 70% 60% 50% 40% 30% 20% 10% 3 3 4 Fig-22 Interpretation: Segment C cars are known as hybrid car segment between the B segments fuel efficiency with the luxury of the D class. Checking the same it seems that most of the cars in this segment are placed much closed to each other with very little difference here and there.
Customers want their cars to be fully equipped with high speed systems. PGP/FW/2007-09 DF79-M0477 .Monila Dawar 69 6) What should be the top speed of your family car? Figure-23 Interpretation: It suggests that the car having maximum speed more than 150kmph is no problem as it is only plus as one could easily increase its speed when ever it is required.It also signals toward the thrill part as by adding more thrill gears into their cars they can really move ahead.
As the respondents showed by their responses that the unique parts should be made available on demand but the daily chores of the parts should be available every where.42% P rts a a nd a ccessories a ila only is big va ble cities:2.71% a If a other:None ny Figure-24 Interpretation: Parts and accessories should be available all over the country in this case the indigenous Mahindra and Mahindra automobile is far ahead of other counterparts as it is evident that its showrooms and work shops are at all places inIndia.It can further move ahead PGP/FW/2007-09 DF79-M0477 . If any other 90. Parts and accessories available all over the country Parts and accessories available only in big cities Unique parts and accessories should be available on demand otherwise parts should be available all over the country d.Monila Dawar 70 7) What is your preference when it comes to considering the availability of the parts and accessories of your family car? a.00% 20.00% 30.00% 10.00% 60.00% 70.00% 50. c.00% 0.00% 80.00% P rts a a nd a ccessories a ila a over va ble ll the country:11.85% Unique parts should be a ilable on va dem nd:85.00% 40. b.
will deliver it and will keep on providing the after sales services to the customers as and when required. So wherever you go its not difficult to find a PGP/FW/2007-09 DF79-M0477 . it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called car! Why M&M Passenger Car fares so well ahead of its competitors till date and its the largest car company in India with the largest market share in A and B segment is because during the protected regime it build a dealers network so strong that its yet very difficult for most of the competitors to set up a network as large as M&M Passenger Car. 1 = Highly Satisfied. 3 = Neutral. 2 = Satisfied. 4 = Dissatisfied. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where. 5 = Highly Dissatisfied • • • • • • • • • • • • • Distance ( Proximity) Advertisements (Promotions) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Car Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) Schemes Dealers are the middle men between a car manufacturer and its customers. Satisfaction level of customers with dealers of various car manufacturers on various parameters Q1.Monila Dawar 71 by opening more dealerships and showroom so that all the parts could be made available easily throughout India. So. Dealer thus becomes the most important link in joining the company to its customers as he is the person who will sell the product.
PGP/FW/2007-09 3 4 4 5 5 4 DF79-M0477 4 . Custom e 100% 90% 80% 1 70% 60% 50% 40% 30% 20% 10% 2 Figure-2 er Satisfaction Level ( in %age terms) 4 4 4 2 3 4 3 Interpretation: While buying a car. So. So dealers act as influencers on the complete buying behavior of the prospective customers. dealers ‘choice play a very important role in deciding the company and model’s choice. dealer network is something of such importance that while studying the customer’s satisfaction profile its almost impossible to ignore it. for B and C segment cars M&M Passenger Car emerges out as the clear winner among the four car companies studied all thanks to the vast. extensive and well managed dealer system. the cost of service provided by M&M Passenger Car dealers is the lowest followed by Tata Motors. Among all the listed factors M&M Passenger Car fares the best among all its counter parts in terms of dealer density which is quite obvious. This is how M&M Passenger Car has maintained relationships with its customers and has been able to convert most of them into a repeat customer. Similarly.Monila Dawar 72 M&M Passenger Car service station and a M&M Passenger Car dealer. Also.
This is because of the reason. On the contrary Passenger Car Estilo and Aveo share the same platform on the brand image. 4 Figure-26 3 2 4 3 PGP/FW/2007-09 1 DF79-M0477 .How do you rate the brand image of your car? 1 = Very Low and 5 = Very High 6 5 Customer Perception ( Avg) Interpretation: As per the analysis. Hyundai Passenger Car is the car whose brand image is most preferred in the market.Monila Dawar 73 Q2. This is established by the fact that TataIndica Car and Swift are exactly the same as far as the image is concerned. that it’s from the house of Hyundai a South Korean company known for its overall image. This can be attributed to the fact that both these cars are relatively new on the block and market takes time to imbibe and give the brand an image.
This is because of the fact that GM itself commands an amazing brand image among its customers. Accent and Verna both Hyundai cars share the same position.Monila Dawar 74 Cu 6 5 Customer Perception ( Avg) Interpretation: As the analysis reveals GM’s Optra fares as the Best Car as far as customers’ perception is concerned about the brand image of the car in the C segment. 4 Figure-27 3 2 4 3 1 PGP/FW/2007-09 DF79-M0477 .
Will you recommend your car to your friends? 80 73 70 60 Figure-28 Interpretation: It seems logical that satisfied customers will someday become customer satisfaction scores and customer buying behavior. If a customer rates the car very high in satisfying his or her needs.Monila Dawar 75 Q3. the car manufacturer should expect more referrals and this is reflected in the analysis that 73% customers say that they will refer their car to their friends even if they move to other segment or other brand. 50 Frequency loyal customers. in other words there is a positive correlation between 40 30 20 PGP/FW/2007-09 DF79-M0477 .
And the next striking finding is 6 7 17 11 DF79-M0477 0 .Will you buy your new car in the 40 35 30 25 20 15 10 5 PGP/FW/2007-09 Figure-29 Interpretation: The analysis shows that most people when moving to upper that the customers will prefer both same and different manufacturers in the B segment cars and there is not much difference in the C segment also. Values segment will prefer a different manufacturer. This behavior is complex to understand as this are the customers who have given whopping response for recommending their car to their friends. It’s the reason why brand perception is so difficult to understand.Monila Dawar 76 Q4.
The four age groups were: Less than 21 years 21 -35 years 36-54 years More than 55 years PGP/FW/2007-09 DF79-M0477 .5 65 >5 5 1 7 2 0 2 1 4 1 Figure-30 I surveyed around 50 people who belonged to various age groups.Monila Dawar 77 DEMOGRAPHICS a ego p g ru <1 2 2 -3 1 5 3. The survey of 4 age groups was done.
001-2.001 – 2.000 More than 2.00. which was a fortunately desirable result of simple random sampling.000 a month income.001 19 33 19 28 Figure-31 I surveyed around 50 people who belonged to various monthly family income groups.00.Monila Dawar 78 MONTHLY FAMILY INCOME m onthly fam ily incom e <50.001 Interpretation: Above graphs exhibits the income bracket of the sample size.00. The four income groups were: Less than 50000 50000 .00.1. this enables the study to be wide and not dependent on a set income class.00.00. PGP/FW/2007-09 DF79-M0477 .00.000 1.000 >2. Though none of the bracket is highly skewed. as evident the majority of the sample is in the income bracket of < 50. The survey of 4 income groups was done.001-1.000 1.00.000 50.
and models available. also the choice of the car is largely influenced by the manufacture image. As Getz is from the house of Hyundai known for its technology and great design is far better perceived as a preferred car than other cars. services. this perception may or may not result in a converted sale. But a word of caution here.Monila Dawar 79 CROSS TABULATION 1) Motive to buy the car*segment car B and C Bar Chart 20 segm ent C ar B E s t ilo W agon R S w if t 15 S a n tro G e tz I n d ic a V 2 Aveo t n u o C 10 E s te e m B a le n o A ccent V e rn a 5 I n d ig o M a r in e I n d ig o O p tra 0 le ab rd fo Af les sa ter Af lue va c Te i hn l ca p Su rt fo m Co ty fe Sa an m a uf e ur ct r fo ey on m Interpretation: According to the result. I found that choice of car depends upon these following factors: the choice of car is not driven only by intensive factors such as brand perception but is hugely influenced by extensive factors such as price. If Mahindra and Mahindra starts providing the value for money as Getz is doing. Which means provide something extra which could PGP/FW/2007-09 s ice pr ice rv se r's respondant's objective buying a car brand r it io er y er ov co m t it pe io n Figure-32 im e ag DF79-M0477 . financing options etc. This is why Getz emerges out as a winner in the B segment for this criteria as they provided value for money.
Ranking of Brand and Image*Segment B and C car PGP/FW/2007-09 DF79-M0477 . Bar Chart respondants' ranking of brand and company image Very Low Low 30 Neutral High Very High 40 t n u o C 20 10 0 yes no Would you recommend your car to your friends Figure-33 Interpretation: The graph shows that people who rank their car high or very high on the brand image are the people who recommend their car to their friend.Monila Dawar 80 bring delight on customer’s face for an example: Lavish interiors and excellent fuel efficiency. This is something the car companies should look for as these people may not be the brand loyal but are definitely the people who help a company to reinforce the brand image propagated by the company.Recommend the car to your friend*ranking of Brand and company . then certainly Mahindra and Mahindra can surge-up its sales by leaps and bounds.
PGP/FW/2007-09 DF79-M0477 . WagonR and Indica will be taken. So.Monila Dawar 81 Bar Chart segment Car B and C Estilo Wagon R 8 Swift Santro Getz Indica V2 6 Aveo Esteem Baleno Accent 4 Verna Indigo Marine Indigo Optra 2 10 t n u o C 0 Very Low Low Neutral High Very High respondants' ranking of brand and company image Figure-34 Interpretation: This graph shows that how brand image is useful in making the choice of a car especially in the B and C segment. to improve on all related aspects. M&M Passenger Car is the car whose brand image can be on the top and it could be the most preferred car .if technological advances of swift.
its resale value. After sales services satisfaction and relationships satisfaction are the three core elements which customers are looking for. As per the analysis . etc. Increase of sales could also be achieved by showing technology advances. Customers satisfaction is taken as an asset by many customer centric corporations. Definately people helped the company to reinforce the brand image by recommending it to others which they had aimed at its inception. Also the choice of the car is largely influenced by the manufacturer’s image. Such as take case of Tata’s Grande it has the brand personality made for the semi affluent group or say it was launched as segment C car. and models available. service. Those who implied these elements. financing options. This is something the car companies should look for as these people may not be the brand loyal but are definitely the people who help a company to reinforce the brand image propagated by the company.its evident that customer satisfaction means retention of customers. people who rank their car high or very high on the brand image are the people who recommend their car to their friend. affordability. sturdiness and looks. affordable price and looks to die for. their cars are selling like hotcakes. and say it was complete value to the money. For an example :Zen was a segment –B car of the Maruti udyog Ltd company and it was a hit car and why because the customer liked its fuel efficiency qualities. According to the analysis done. Car manufacturing companies research and development department should also look at the disposable income of the PGP/FW/2007-09 DF79-M0477 .Monila Dawar 82 ChapterRECOMMENDATIONS According to the research and analysis done in this thesis brand personality alone is not enough in many cases. but it could not live upto the expectation as people were asking for more that were :better fuel efficiency. choice of car depends upon the factors such as brand perception but is hugely influenced by extensive factors such as price. Product satisfaction. and hence customers bring word of mouth into play. its looks. Supposedly according to analysis the best way to achieve optimum sales when your satisfied customers bring word of mouth into play.
could easily surge-up the pace of the sales of the cars. and that is the availability of the parts and accessories of the car. As per survey another very important thing has come to the fore. On this front company like Mahindra and Mahindra can keep its nose ahead by opening its dealership in remotest of areas and this will surge up the selling. etc. the indigenous company of Mahindra and Mahindra has shown greater research acumen. PGP/FW/2007-09 DF79-M0477 .50000 per month and hence they want to buy a car. which can suit their pockets. In competition with its foreign counterparts such as Toyota.As for an example: Mahindra and Mahindra don’t have upper segment car for affluent groups.75000 well within the reaches of the income groups. etc. All these factors are very important factors with Segment-B and C as such type of cars usually in the Indian car market are bought by income groups whose newly increased disposable salary can afford but they put every step with great caution while buying the car. The analysis also shows that most people when moving to upper segment of the car will prefer a different manufacturer.6. On the other hand when talking about B or C segments cars customers. In this case a car which has a perfect blend of all the above mentioned factors. Safety gears. It should also look to launch a upper segment car such as land cruiser of Toyota company. they recommended for it and remained loyal. this also showed that how complex is it to understand brand perception of the customers. In this case ‘Xylo’ is the perfect example. Such types of research acumen will definitely see increase in selling. Here one thing is for sure that those who recommend their cars are satisfied customers. For an example :In India all the regions are not well developed so many car manufacturing companies could not able to open their showrooms and dealerships at remotest of the places. over all looks.Monila Dawar 83 citizens as analysis showing that most of them belonged to income group that is below Rs. Maintenance cost incurred. GM. Fuel efficiency. As we all know that its (xylo) basic variant starts at Rs. So that the customer will remain loyal to the company and increase in sales in its upper segment cars will also be seen. Interior design.
which can always prove to be the main reason behind selling or none selling. and currently accounts for about half of India’s market for utility vehicles. services time. cost of service. It is evident by the analysis that many important cases are being handled by the dealers and hence lead to the customers satisfaction and retention. car handling during servicing. Mahindra and Mahindra is the leader in light commercial vehicles. providing technical facilities. if it starts following aforementioned recommendations. including three-wheelers.Customers are very clever they look for the distance proximity of the dealership from their residing places as well. The further more market share could be captured. Such as advertisements (promotions). This thing also lead to increase in sales or decrease in sales. PGP/FW/2007-09 DF79-M0477 . information providing. availability of spares. So the dealership should be made available if a company wants to increase its sales. It is the market leader in utility vehicles in India since inception.Monila Dawar 84 A very important role is played by dealers. etc . finance credit schemes.
Monila Dawar 85 ChapterCONCLUSION To conclude. It focuses on and is concerned with all integrated internal and external activities within and between the organizations. the results show that the companies are playing on the peripheral cues to maintain their Total Relationship Management and connect to the customers both present and potential. The brand perception is dependant mostly on the peripheral cues depending upon the nature and quality of the service provided along with the pricing. Total Relationship Management (TRM) is a very recent marketing strategy and philosophy. The study shows that brand perception is something which starts building up before a car is purchased and goes on with its use and is reflected in the recommendations the customer makes to his acquaintances for the same car. TQM focuses on integration and coordination as well as the continuous improvement of all activities and processes. These two terms are integrated by the manufacturers by building good quality products and building good relationship with dealers and enhancing service levels. Brand personality of a car is enforced by the PGP/FW/2007-09 DF79-M0477 . its seen that the customer might not be using the car still he holds the perceptions about it. So this might be the reason that despite Verna faring so high on the performance parameters still lags on the account of converted sales. when studied from the point of view of a customer there seems to be no major difference among the car brands in a segment as far as performance is concerned. Also. a question arises here that is this the end of road for the branding of cars? Has the commoditization of cars has started and its time that manufacturers must read the writing on the wall? It seems so! It seems as an undercurrent sentiment is flowing and the perception of the customers is changing according to it. maintenance. So. The companies are operating in a highly aggressive and competitive global market place and this climate has led to the emphasis on quality in all aspects. However. availability of spare parts and related issues.
it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called car! Their proximity to the customers. Finally the major point that emerges out of this detailed study is a caution for the car companies .Monila Dawar 86 sellers in the mindsets of the customers and the customers react to it by forming their perceptions about the car and this reflects in the overall brand image of the car. Simply because it simply is not a guarantee that how so ever good the customer might be holding the brand perception and how so ever good the brand image may be it is not a guarantee that it will convert into sale. Dealers. play a very important role in building up the brand perception of the cars. “ how to increase passenger car sales?”. Since dealers are the connecting link between the customers and the manufacturers thus becoming the most important link in joining the company to its customers as he is the person who will sell the product. So. the service provided by them and the relationship maintained by them with the customers helps the car companies to establish and reinstate the brand personality communicated by them to the customers. It says that there is no doubt that Indian car market may be growing with a double digit figure still the car companies have a long way to travel to convince their customers about the brand personality of their cars and how it suits the prospective buyers. So brand image and brand personality complement each other and the brand perception aids the building of brand image. Cars just like clothes and accessories suit the style and persona of a person and since all cars will become commodity someday the key to sell and excel in the market will lie with a person who knows how to use the perceptions of the customers to its use and sell the cars ‘coz ultimately only that car survives which sell. PGP/FW/2007-09 DF79-M0477 . the answer lies within this result of this research. will deliver it and will keep on providing the after sales services to the customers as and when required.what are the do’s and what are the don’ts ?ultimately. as per the study findings.
google.com www. Internet i.org a.com www.com (3) www.siamindia.autocarindia.com www.Monila Dawar 87 BIBLIOGRAPHY Sites Visited www. Search Engines www. Sites (1) www. Book referred to Philip & Kotler: Marketing management b.in PGP/FW/2007-09 DF79-M0477 . Magazines Companies research paper Business Today d.com (2) www.maruti. Journals HBS (Harvard business review) c.com www.com ii.marketingtimes.ibef.overdrive.co.mahindraandmahindra. Hyundai.
Highly Dissatisfied 2. Family needs 4. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your preference) 1. Satisfied 5. Increase in family size 5. Highly Satisfied Interior Type Seats design Leg Room Dash Board Interior Colour Music System Adjustable Front seat Headrest 1 2 3 4 5 PGP/FW/2007-09 DF79-M0477 . Value for money 6. Why you bought your present car? Please rank from the highest order of preference 1. Safety 7. After sale services Product Satisfaction Level Q3. Increase in disposable income 2.Monila Dawar 88 APPENDICES QUESTIONNAIRE For Customers: Q1.Please rate your existing car in terms of understated Interior Design features on a scale of 1 to 5 where 1. Dissatisfied 3. Affordable price 2. Technical superiority over competition 3. Better safety at roads 3. Comfort 4. Suits your lifestyle and personality Q2. Manufacturer’s image 5. Neutral 4.
Parts and accessories available all over the country Parts and accessories available only in big cities 1 2 3 4 5 1 2 3 4 5 c. If any other Customers satisfaction levels with dealers of car manufacturers on various parameters PGP/FW/2007-09 DF79-M0477 .Monila Dawar 89 Q4.Please rate your existing car in terms of following parameters Parameter Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed 6)What should be the top speed of your family car? (a) 160kmph (b) 150kmph (c) 140 kmph (d) 130 kmph (e) between 110 to 125kmph 7) What is your preference when it comes to considering the availability of the parts and accessories of your family car? a. Unique parts and accessories should be available on demand otherwise parts shouldbe available all over the country d. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5 Safety Parameters Crossbar under Dashboard Air Bags Anti Lock Breaking System Aerodynamic Shape Intensity of front lights Q5. b.
How do you rate the brand image of your car? 1 Very Low 2 3 4 5 Very High Q10. Satisfied 3. Dissatisfied 5. Highly Satisfied 2.Monila Dawar 90 Q8. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where 1.Will you recommend your car to your friends? • Yes DF79-M0477 PGP/FW/2007-09 . Neutral 4. Highly Dissatisfied 1 Distance ( Proximity) Advertisements (Promotions) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Car Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) Schemes 2 3 4 5 Q9.
000 –Rs 1.000 More than Rs 2.000 Rs 1.Monila Dawar 91 • No Q11.If yes. different manufacturer Upper segment. 00. will you buy your new car in the • • • • Same segment . 00. same manufacturer Upper segment. 00. 00. different manufacturer <21 36-55 21-35 >55 Age group: Q12What is your monthly Family income? Less than 50000 Rs 50.001– Rs 2. same manufacturer Same segment.001 Number of car’s owned: Present Car (s) owned: NAME: Phone No: GENDER: PGP/FW/2007-09 DF79-M0477 .
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