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The Indian automobile industry is the tenth largest in the world with an annual
production of approximately 2 million units. Indian auto industry, promises to
become the major automotive industry in the upcoming years and the industry
experts are hopeful that it will touch 10 million units mark.

Indian automobile industry is involved in design, development, manufacture,


marketing, and sale of motor vehicles. There are a number of global automotive
giants that are upbeat about the expansion plans and collaboration with domestic
companies to produce automobiles in India.

The major car manufacturers in India are Maruti Udyog, Hyundai Motors India
Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Toyota Kirloskar
Motor Ltd., Hindustan Motors, Tata Motors etc.

In India automobile industry is one of the largest industries in the global presence.
Since it is the leader in the products and process technologies in the manufacturing
sector, it has been one of the reason to drive the economy growth. During the last
decade, well directed efforts have been made to provide a new look to the
automobile policy for realizing the sector's full potential for the economy.
Aggressive marketing by the auto finance companies have also played a significant
role in boosting automobile demand, especially from the population in the middle
income group ?
India is well known for its transport system. For instant and rapid growth in
economy, a well-developed and well-networked transportation system is essential.
As India's transport network is developing at a fast pace, Indian Automobile
Industry is growing too. Also, the Automobile industry has strong backward and
forward linkages and hence provides employment to a large section of the
population. Thus the role of Automobile Industry is very essential in Indian
economy. Various types of vehicles are manufactured by the Automobile Industry.
Indian Automobile Industry includes the manufacturing of trucks, buses, passenger
cars, defence vehicles, two-wheelers.

It is one of the industries in India which provides employment in large extent. The
automobile industry in the country is one of the key sectors of the economy in
terms of the employment opportunities that it offers. The industry directly employs
close to around 0.2 million people and indirectly employs around 10 million
people. The prospects of the industry also has a bearing on the auto-component
industry which is also a major sector in the Indian economy directly employing
0.25 million people.

All is not well with the automobile industry the world over currently with the
slowdown that has gripped most of the major economies of the world. The gap
between the manufacturing capacity volume and the assembly volume is growing
by the day and has worried the manufacturers. This state of affairs has triggered a
lot of cutthroat competition and consolidation in the industry. Cost reduction
initiatives have come to be the in thing in the global industry today. Towards this
direction, many automobile factories are being closed down.
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Car manufacturing in India first began in late 1940s. Earlier a couple of cars made
by foreign technology were manufactured in India. But now, cars made my Indian
car manufacturers dominate the business.

The future of car manufacturing in India is bright. Sensing this, foreign car
manufacturers like Ford, Toyota, Hyundai, Suzuki, Honda and Skoda are spreading
their base in the country. Domestic car manufacturers have also contributed to the
growth of the automobile industry in India. The popular car manufacturers in India
are:
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The Fiat India that belongs to the Fiat Auto Spa group of Italy gives world-class
cars to the country. This group has entered the motor vehicle sector more than one
hundred years ago and has earned fame not only in India, but also abroad. Besides
'Uno', which is Europe's favorite car for the last two decades, the brands like Palio,
Petra and Adventure have also become famous.

Œc  : It was originally an American company. It entered the


Indian market in the year 1988 and launched Ford Escort. The Ford Ikon launched
in 2001 was a successful car in India. Other brands of Ford like Ford Fusion, Ford
Fiesta, Ford Mondeo and Ford Endeavour also gained popularity in India.
Recently Ford Figo is gaining popularity in Small Car Segment.

.
þ  ¢: Hyundai Motor India Limited (HMIL) is not only the second
largest car manufacturer in India, but is also the fastest growing among the car
manufacturers in India. The popularity of Santro, Getz, Accent, Elantra, Sonata
Embera and Tuscon is proof of its success. The company is an ISO 14001.

¢  : This is the first automobile company in the world to have an ISO
9000:2000 certificate. It has a joint venture with Suzuki Motor Corporation. The
popular models of this group are Alto, Ritz, Swift, Wagon-R and Zen.

¢  : It is India's largest automobile company, the largest


commercial vehicle manufacturer, the second largest passenger car manufacturer in
India and the fifth largest medium and heavy commercial vehicle manufacturer in
the world. The popular brands of the company are Tata Indica, Tata Indigo, Tata
Sumo and Tata Safari.
 : Recently tata Motor launch india cheapst car Tata nano in One lakh
rupees

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According to the Philip Kotlar, "V  



    


   
  
  
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Advertising is a form of communication that typically attempts to persuade


potential customers to purchase or to consume more of a particular brand of
product or service. Many advertisements are designed to generate increased
consumption of products and services through the creation and reinvention of the
"brand image´. For these purposes, advertisements sometimes embed their
persuasive message with factual information. Every major medium is used to
deliver these messages, including television, radio, cinema, magazines,
newspapers, video games, the Internet, carrier bags and billboards. Advertising is
often placed by an advertising agency on behalf of a company or other
organization.




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In the recent days the Indian advertising industry is one of the talking business
today. It has evolved from being a small-scale business to a large scale industry or
full-fledged industry. It has emerged as one of the major industries and tertiary
sectors and has broadened its horizons be it the creative aspect, the capital
employed or the number of personnel involved. Indian advertising industry in very
little time has carved a niche for itself and placed itself on the global map.

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Indian economy is on a boom and the market is on a continuous trail of expansion.


With the market gaining grounds Indian advertising has every reason to celebrate.
Businesses are looking up to advertising as a tool to cash in on lucrative business
opportunities. Growth in business has lead to a consecutive boom in the advertising
industry as well.

The Indian advertising today handles both national and international projects. This
is primarily because of the reason that the industry offers a host of functions to its
clients that include everything from start to finish that include client servicing,
media planning, media buying, creative conceptualization, pre and post campaign
analysis, market research, marketing, branding, and public relation services.
Keeping in mind the current pace at which the Indian advertising industry is
moving the industry is expected to witness a major boom in the times ahead. If the
experts are to be believed then the industry in the coming times will form a major
contribution to the GDP. With al this there is definitely no looking back for the
Indian advertising industry that is all set to win accolades from the world over.
Therefore for more information on Indian advertising, advertising agencies,
marketing and advertising or any related information.

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At present major Indian, European, Korean, Japanese automobile companies are


holding significant market shares. In commercial vehicle, Tata Motors dominates
over 60% of the Indian commercial vehicle market. Tata Motors is the largest
medium and heavy commercial vehicle manufacturer.

Car manufacturers in India dominate the vehicle market by 79%. Maruti Suzuki is
the largest car producer in India and has 39% share in passenger cars and is a
complete monopoly in multi purpose vehicles and we can see the second and third
position is hold by Hyundai and Ford, followed by others and we have separate
sets for niche market in luxury segments cars like BMW, Audi etc have around 9%
share on the whole segment.


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A research design is the arrangement of conditions for collection and


analysis of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. It is the conceptual procedure with in which research
is conducted. The objective of this project is to gain a better insight into the various
strategies adopted by various four wheeler manufacturers.

The system is evaluated and steps for improvements are suggested.


Information that was already available and collected through questionnaire is used
to make a critical evaluation of the system. Therefore     was
selected.

The descriptive research describes a behavior or condition. It attempts to obtain a


complete and an accurate description of the characteristics of a particular
individual or a group or a situation.

  

The respondent of the study are part of population of INDORE city.

 


The size of the sample is 250 out of the total population


  

Non-Probability ±convenience sampling is used in the survey.

I have used chi square test as a statistical tool in this thesis

  

Data is the basis for all statistical analysis and collection of data is the important
stage in the research. The data could be classified as Primary data and Secondary
data

  

Primary data are the data which can be collected afresh and for the first time and
thus happen to be original in character. The primary data used for this study was
collected through questionnaire.

 

Secondary data means data that are already available (i.e.) they refer to the data
which have already been collected and analyzed by someone else. For this study
the secondary data was collected from Company manuals, Websites, annual
reports, Journals, etc.

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The research instrument for this study is questionnaire. Questionnaire is a set of


questions prepared in order to collect the required information from the employees.
The questionnaire contains the following type of questions.


    

The data collected was analyzed using the following statistical tools.

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This is a unvaried analysis (i.e. considering just one factor) where the percentage
of a particular factor, with different categories are calculated in order to help one
get a fair idea regarding a sample and thereby that of population.

      

The ease of simplicity of calculation, the general understanding of its purpose


and the near universal application of the percentage have made it the most
widely used statistical tool.









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The period of the current research is limited. Hence all the data would be limited to
the stipulated period only 

  

The study is limited to only to Indore. We cannot render exact information based
on this survey.

 

All data collected are generally limited by the method adopted. In the current
research, the method of data collection being a questionnaire, data is limited to the
extent of data generation available through this method. Findings of the study are
based in assumption that respondents have given correct information.

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More than half the number of cars sold in India wear a Maruti Suzuki badge.
They are a subsidiary of Suzuki Motor Corporation Japan and they offer full range
of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star,
Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand
Vitara.

Since inception, they have produced and sold over 7.5 million vehicles in India and
exported over 500,000 units to Europe and other countries.

Their turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After
Tax at Rs. 12,187 Million. 

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The award mirrors the company's commitment towards "Customer Obsession".

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The advertising strategies of Maruti Suzuki India Limited (Maruti), a subsidiary of


Japan based automobile major Suzuki Motors. Maruti, India's leading passenger
car manufacturer was founded in 1981. The liberalization of the Indian economy in
1991 resulted in the entry of several foreign automobile companies in the Indian
passenger car market beginning from the mid 1990s. To prevent the continuous
decline of its market share, Maruti started a restructuring exercise in the year 2001.

As part of the restructuring exercise, Maruti also laid emphasis on its advertising
strategy to help maintain its position as a market leader.

 
 
 
   
  

 



  
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The television commercial (TVC) showed a race where a sprinter started running
and finished first. Then, he went on to join a marathon and won that also. The
sprinter continued running after finishing the marathon. The commercial then
brought into focus the machine which kept the sprinter going - a K series engine.

he ad campaign including the TV commercial was developed by Capital


Advertising and also included print ads, outdoor campaigns, and internet ads
(Refer Exhibit I for a Print Ad of Maruti's K Series Engine).

Maruti was founded in 1981. The company has been the market leader in the
passenger car industry in India. The liberalization of the Indian economy in 1991
allowed the entry of foreign automobile companies in the Indian passenger car
market from the mid 1990s. To prevent the erosion of its market share by
competitors, the company started a restructuring exercise in 2001. Along with
restructuring, Maruti also adopted a new marketing strategy to help maintain its
position as market leader
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u? Service after sales (they always focus on Maruti Service Station)


u? Focus on family
u? Celebrations
u? Mileage factor - for Certain Cars like Alto

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Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai


Motor Company (HMC), South Korea and is the largest passenger car exporter and
the second largest car manufacturer in India. HMIL presently markets 6 models of
passenger cars across segments. The A2 segment includes the Santro, i10 and the
i20, the A3 segment includes the Accent and the Verna, the A5 segment includes
the Sonata Transform.

HMIL¶s fully integrated state-of-the-art manufacturing plant near Chennai boasts


of the most advanced production, quality and testing capabilities in the country. To
cater to rising demand, HMIL commissioned its second plant in February 2008,
which produces an additional 300,000 units per annum, raising HMIL¶s total
production capacity to 600,000 units per annum.


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Late last year, Chris Perry, marketing communication director India, got a call he¶d
been waiting years to receive. A rep in Hyundai¶s media-buying agency reported
that an exclusive multiyear advertising sponsorship for the Academy Awards
broadcast was up for grabs. Hyundai, which once ran ads reminding consumers its
name rhymed with ³Sunday,´ was eager to boost its profile among Indian car
buyers, so Perry and his team leapt into action.

Less than two months before the February broadcast, Hyundai signed a deal to be
the show¶s exclusive automotive sponsor for the next three years, giving the
automaker a high-visibility opportunity to build brand awareness in a hurry. It also
provided a terrific platform to introduce consumers to its innovative Assurance
plan, whereby Hyundai promises to buy back cars from its customers if they lose
their job or become unable to work.

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u? Style and Power


u? Goes along with Sports (Mainly Football World cup)
u? Concentrate on brand Ambassadors
   

Tata Motors Limited is India's largest automobile company, with consolidated


revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in
commercial vehicles in each segment, and among the top three in passenger
vehicles with winning products in the compact, midsize car and utility vehicle
segments. The company is the world's fourth largest truck manufacturer, and the
world's second largest bus manufacturer.

The company's 24,000 employees are guided by the vision to be "best in the
manner in which we operate, best in the products we deliver, and best in our value
system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first
rolled out in 1954. The company's manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in
2005, it has set up an industrial joint venture with Fiat Group Automobiles at
Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains.
The company is establishing a new plant at Sanand (Gujarat). The company's
dealership, sales, services and spare parts network comprises over 3500 touch
points; Tata Motors also distributes and markets Fiat branded cars in India.

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Innovative use of media to advertise the launch of the Tata Nano has fetched three
top awards at Emvies 2009. The Emvies Awards, organized by the Advertising
Club of Bombay, are India¶s biggest media awards.

Tata Nano''s launch campaign won gold medals for the Best Media Innovation in
Print and in Ambient Media/Out-of-Home categories. It also won the silver medal
for the best media strategy in Consumer Durables (there were no gold medals this
year).

There were 59 shortlisted entries for the Emvies this year.

Earlier in the year, Cannes 2009 - the world¶s most coveted advertising awards -
had conferred the Bronze Lion for Best Use of Mixed Media to the Tata Nano''s
launch advertisi


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u? They Focus on Eco Friendly


u? Focus on passengers cars (Nano)
u? Power & Style (Scorpio)

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Mileage 98 49%

Quality 30 15%
Price 40 20%
Brand Imange 20 10%
Others 12 6%
Total    

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In the above table 49% of the respondents told that they look into the mileage of
the car before purchase, 15% look for quality, 20% go with the price, 10% on the
brand image and 6% told the mixed answer

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% 
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Small cars 94 47%
Luxury cars 60 30%
SUV segment 26 13%
Other 20 10%
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47% of the respondents told that they prefer small cars, 30% says luxury cars, 10%
says others and the rest 13% says SUV segment.

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That looks stylish 52 26%
That¶s comfortable 46 23%
That¶s the right size 40 20%
That¶s durable 22 14%
That satisfies all the above 30 15%
features
Others 4 2%
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Cars that looks stylish are demanded by 26% of the respondents, that¶s comfortable
is demanded by 23%, that¶s right size by 20%, That¶s durable by 14%, That
satisfies all the above features is demanded by 15% of the respondents and the rest
2% said mixed answers.

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% ) Œ    þ %  

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Maruti 52 26%
Toyota 48 24%
Ford 24 12%
Hyundai 60 30%
Honda 16 8%
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30% of them prefer Hyundai, 26% prefer Maruti, 24% of them prefer Toyota and
12% prefers Ford and 8% prefers Honda.
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Price 90 45%
Space 44 22%
Design 38 19%
Others 28 14%
Total 200 100%

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It is clear that 45% go for a particular brand if they are satisfied with the price,
22% because of space, 19% for design, 14% prefer for other reasons


* ? Please award your rating to each of the following features highlighted in an


advertisement

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Appearance 56 28%
Brand image 28 17%
Color 20 13%
Design 24 15%
Durability 12 8%
Price 30 18%
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c Appearance of the car is the best feature preferred by 28% of the


respondents, brand image of car by 17%, color by 13%, design by 15%, durability
by 8% and the price by 18% of the respondents.


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Price Discounts 2 40%
Contests 1 20%
Free gifts for customers 1 20%
Others 1 20%
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c 40% of the respondents feel price discounts attract customers, 20%


says it is contests, 20% says free gifts attract more and the 20%said various
answers.


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Luxury 1 20%
Style 1 20%
Fuel Efficiency 3 60%
Others 0 0
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c  20% of the respondents feel that it is Luxury that gives longevity for a
car in the market, 20% feels it is style, for 60% it is fuel efficiency.
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Interior space 2 40%
Features 1 20%
Mileage 1 20%
Price 1 20%
Brand 0 0
Other 0 0
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c  40% of the respondents said that interior space is the major factor that
induces the customers, for 20% it is features in the car, for 20% it is the mileage,
for 20% it is the price
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Brand ambassadors 5 33%
Frequency 4 27%
Message 3 20%
Type of Media 1 7%
other 2 13%
Total 15 100%

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c  33% of the respondents feel that brand ambassadors are the effective
factor of advertisement, for 27% it is the frequency of the advertisement, for 20%
it is the message, for 7% it is the media type selected, and the rest 13% said various
response
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Drafting market plans 8 53%
Timely introduction of 4 27%
vehicles
Extra features 2 13%
Others 1 7%
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c 53% of the respondents feel that drafting of marketing plan is the key
promotion factor, 27% feels that it is the timely introduction of the vehicles, 13%
feel that it is the extra features, 7% responded various other answers.
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After doing extensive research on two wheelers¶ advertising strategies, I would


like to conclude has follows

The major factors which make the customer buy the Car after seeing the
advertisement are:

u?     After Sales Service and Style & Power


u?    Price and other features

In the recent days most of the car manufacturing companies primary factors which
they focus in their advertisements are the Power & Style and also After sales
Service they do not divert from their focus like Maruti always focus on the service
station as their primary objective with few ads which they focus on the power and
style like Alto which shows their objective as /0if you see the Hyundai
Strategy focus mainly through sponsorship during the world Cups mainly during
the Π ! and they use the brand ambassador like Sharuk Khan for
the ads for i10 and Santro Zing in the past where they primarily focus on the Car
style and spin turn where it involves   1 

Other Automobile Industry like Chevrolet always focus on the passengers cars and
the family involvement like they always have the couple in their ads or they focus
on the after sales service which involves the children in their ads.














   
—?To study the effect of advertisement on small car
industry.
—?To study the effect of Promotion small car
industry.

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