A

Summer Training Project Report

On
“EMPLOYEE MOTIVATION”
AT
HYUNDAI MOTORS.
This project is done on the occasion of partial Fulfillment of the
Requirement for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Session 2017-2020

Submitted TO Submitted By:

Titiksha Tyagi

BBA 5th Sem.

Roll No.-

MAHAVEER SWAMI INSTITUTE OF TECHNOLOGY,

SONIPATH
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 ACKNOWLEDGEMENT

On the successful completion of this project I would like to express my

gratitude to all the people who have helped me throughout the project.

At first, I owe my debt of thanks to Hyundai Motors which gave me an

opportunity to do this project work.

I wish to extend my deep and sincere gratitude to Mr. Amit Dubey (BM) who
provided me with their guidance from day one and also helped me whole
heartedly to achieve the ultimate goal of the project.

Titiksha Tyagi

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 CONTENTS
1. Introduction of the Project

2. Training Objectives

3. Review of Literature

4. Research Methodology

5. Limitations of the Study

6. Introduction of Company

7. Scope of the Study

8. Data analysis & Finding

9. Conclusions & Recommendation

10. Bibliography

11. Annexure

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 Introduction of the Topic

These theory stresses that man should have control over his work environment.

He can be motivated if he is given more responsibilities and task is made more

exciting and challenging.

Important theories are:-

1. Maslow’s need priority model

2. Hertzberg’s two factors theory

Need Priority Theory

Abraham H. Maslow, an eminent American psychologist developed a

general theory of motivation, known as the Need Hierarchy Theory.

According to this theory there are five categories of human needs. They are

as follows:-

1. Psychological Needs

These are the biological needs required to preserve human life. These

include need for drink, clothing, sleep etc.

2. Safety Needs

These needs are concerned with the protection from danger, deprivation

and threat.

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3. Social Needs

Man is a social animal as he seeks affiliation (association) with others. These

needs refer to need for belonging, need for acceptance, need for love, affection

etc.

4. Esteem Needs

Esteem needs includes self-respect, achievement, competence, status,

recognition etc.

5. Self Actualization Needs

These are the needs for releasing one’s full potential for continued self-

development for being creative. It is the desire of becoming what one is

capable of.

Two Factor Theories

In the late fifties, Fredrick Hertzberg and his associates conducted

interviews of 200 engineers and accountants. These persons were asked

to relate the elements of their jobs, which made them happy or unhappy.

An analysis of their answered revealed that the feeling of unhappiness or

dissatisfaction was in which people were working. On the contrary,

feeling of happiness and satisfaction related to other jobs.

According to Hertzberg, maintenance or hygiene factors are necessary to

maintain a reasonable level of satisfaction among employees. These

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factors do not provide satisfaction to the employees but their absence will

dissatisfy them. They are extrinsic to the job i.e. they are environmental

factors. On the other hand, motivational factors are intrinsic parts of the

job. Any increase in these factors will satisfy the employees and help to

improve performance.

Hertzberg identified following factors as Maintenance and Motivating

factors:-

Maintenance Factors Motivating Factors

Company policy and administration Achievement

Technical supervision Recognition

Interpersonal relationship with the supervisor Advancement

Interpersonal relationship with the Opportunity for

subordinates
growth

Salary Responsibility

Job Security Work itself

Personal life

--------

Working conditions --------

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Supervisor’s Role and Motivational Models

Supervisor and management for that purpose have the responsibility to assess

the motives and needs of the workers to decide that how best they can be

fulfilled. Each individual must be analyzed separately to discover his motives.

Observation, written attitude, interviews, assessment of previous goals and other

possible sources of need information may be reviewed. However, it is very

difficult to answer the question “What motivate people?” Many factors may be

listed like money, good working environment, challenging work, responsibility,

praise for good work, the communication system and an opportunity for growth

& advancement. There may be several other factors but probably the means for

meeting theses needs can be used to motivate the employees. However,

motivation may be weak or strong depending upon the incentive offered by the

employer, which releases workers ability and potential in relation to his needs.

Sr.No. Expectation From Job

1 Good working conditions

2 Feeling in on things

3 Tactful discipline

4 Full appreciation

5 Mgt. loyalty to workers

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 6 Good wages

7 Promotion and growth

8 Understanding of personal problems

9 Job-security

10 Interesting work

Rules for Using Positive Reinforcement

To effectively use PR on the job certain rules or procedure must be followed.

Using reward to modify the behavior of the people would seem to follow the

logic of common sense. Nevertheless, it is a specialized procedure requiring

systematic approach. Typically, a behavioral consultant is called to design a

behavior mod program and train supervisor on how to do the program.

Despite these procedure statements if you have a genuine interest in the

welfare of the people you can learn to make a productive use of PR from the

standpoint of the person being motivated.

1. An Appropriate Reward Must be Used

Most motivational theory point to the idea, that the way to motivate the

people is to use a reward that is meaningful to each particular person. If

you were a status hungry technician you might work hard just for the

opportunity to have a parking space just near the engineering chief’s

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 parking space. People display individual difference with respect to which

reward will satisfy which basic need. For example money may not be a

right reward for the person with a large family inheritance. Despite this

individual difference, a couple of illustrative general statements are in

order. The need for self-fulfillment or self-actualization receiving a

favorable performance appraisal challenging work assignment or

promotion.

2. Reward should Vary With The Size Of The Contribution

Your boss is unlikely to do an effective job of motivating you, if all your

co-workers have received a same size of reward. If you have made a

substantial progress in reducing the production of defective parts, you

should receive more recognition than some body else.

3. Beginners Should Be Rewarded for Nay Effort They Make In The

Right Direction

You have begin somewhere for making improvement. Assume that your

desk is so messy that you lose some important files. Your boss is not

obsessed with the orderliness, but he recognizes that you sloppy work

habits interfering with your productivity, using PR approach, your boss

should reward you whenever he comes across your clean and orderly

desk. For example if you boss notices that you no longer keep old coffee

cups on your desk, he might comment “ I can already see an improvement

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 in your work area, keep up the progress” Although this process sounds

elementary, shaping of behavior towards a planned objective increases

the probability that you will make bigger changes in near future.

4. You Should Be Rewarded Occasionally When You Do The Right

Thing

Intermittent reinforcement is more important than continuous

reinforcement for sustaining the right behavior. If you worked as a shoe

store manager it might be rewarding to you if on an occasional visit to

store your boss told you everything looked just fine keep this up and you

will a difference in your salary.

If you boss gives, the same pep talk every week the reward would lose its

impact. Of worse consequences, you might come to depend on the reward

to perform good work.

5. You Should Get You Reward Quickly After Doing The Right Thing

Assuming that money motivated you, you would be more likely to work

hard if hard work led to quick cash. If were selling financial investments

you would tend to keep on prospecting much more readily if you receive

your commission every month rather than after every six months.

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6. You Have To Know What Has To Be Done To Get Rewarded

You need some kind of feedback device in your work to set. You knew

when you have done a good job. If you were a good quality control

technician, it would be helpful for your boss to tell you “ I will see to it

that are promoted to senior technician provided you decrease customer

returns on a product say X by 15 percent over the next four months. One

of the many reason that a basketball game so motivational is that the

path to a reward is clear-cut. A player can readily see that pitting the

ball through the hoop, a reward will be forthcoming. Feedback is

immediate in these circumstances.

7. You Have To Know When You Are Going Wrong

If your boss patiently tells you what you are doing wrong, you will

know what needs to be done to get rewarded. Suppose a secretary is

filing too many documents under the miscellaneous file. The secretary

must be told that this act would result in to time wastage if a particular

file needs to be searched. Your system needs to be more efficient. The

purpose of a filing system is to be able to find information quickly when

you need it.

8. You Should Receive A Realist Reward

An effective reward tends to commensurate with the constructive

behavior. Suppose your boss is trying to get you to be more assertive

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 with the customers. When you do behave more assertively, you should

be rewarded with encouragement of a reasonable sort. Your boss would

be overdoing praise if he or she says that he think that could become a

great sales representative in the region. Such encouragement would lose

their importance because the praise is not genuine.

Motivation through Employees Participation

Another major strategy for increasing the motivation of employees is to

allow them to participate in decisions affecting themselves and their work.

People tend to better motivated when they participate in decision making

because they become involved in the matter. For example if it was your

suggestion to purchase a particular machine for the office. You probably be

well motivated to use that machine. Here practical consequences of this

participation are often increased employee motivation and productivity.

Handsome Wages & Salary

One of the most important techniques of motivation is an appropriate wages

and salary given to the employee. This must be in accordance to their job.

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Late Sitting Allowance

During the course of study it was found that employees do get such

allowances. This derives them to sacrifice their extra time to earn extra

money.

Dress Code

Their exists dress code for worker of the level of peon, driver and cook. The

company is providing dress, which includes two pair of uniforms with shoes

for summer and two pair of suits with blazer for winters.

Maternity Leave

A female worker in this organization gets three month maternity leave.

EWS

Company has a scheme of EWS (Economic Weaker Section) under which

people earning less than Rs. 1400 per month can apply for the loan at a very

nominal rate of interest.

Washing Allowance

The employee gets washing allowances on monthly basis.

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Special Parties

Company from time to time organizes various poojas and function and all

the worker are also involved in it. This undoubtedly gives rise to a feeling of

belongingness and hence the employees feel motivated.

Appraisal, Praise or Recognition

When an employee does his work well he naturally wants it to be praised and

recognized by his boss and fellow-worker. Company takes special care in

this regard to motivate the employees.

Respect For the Individuals Personal Rights

Company has given the right to communicate their ideas and suggestions to

their superior freely. Not only this, if the suggestion are valuable then a

reasonable amount of credit and publicity is given to the person. In addition

to this their superior gives regular guidance and advice to them.

Working Conditions

Working condition in the company is most appropriate. The number of staff

and the facilities given are appreciable. The atmosphere in which the

employees work is very friendly and relaxing.

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Motivational Technique

These techniques are utilized to stimulate employee’s growth. The purpose

of the motivation is to develop an environment in which people work with

zeal and enthusiasm.

Self-Motivation

The urge or desire that should come from within the person exists in the

company. The employees believe in themselves that they are capable of

performing the given task smartly and efficiency arrive from within the

individual not from someone else.

Top Level Management

One of the most important techniques of the motivation is “To Be an

Example”. This can be very clearly seen in this organization. The bosses, the

top-level management sets an example in front of the employees. This is a

very crucial technique in motivation.

Incentive Motivation

An incentive or reward can be anything that attracts workers and stimulates

them to work. When question comes of incentive motivation the answer can

not said to be perfect but satisfactory. It is said that people work for

incentive for four P’s which are as follows:-

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1. Praise

The first motivator Praise exists to a considerable extent in the

organization under study. A word of praise is being given and employee

feels like doing the next task with higher zeal.

2. Prestige

All employees are being given the environment of earning and

maintaining self-respect. All worker- whether lower cadre or higher cadre

– are given importance.

3. Promotion

The employees are promoted on the regular basis. The promotion is

generally not based upon experience but on work done.

4. Pay-Cheque

There is no direct motivator such as pay-check. The salary is

commensurate with the ability.

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 Motivation Theories And Models

The problem of motivating employees has been engaging he attention of

management ever since the organized activities started. During the last seven

decades numerous expert, thinkers and theorist have studied different aspects

and theories of organizational behavior and individual interaction, which

have a bearing on motivation. Owing to certain limitation only a few

important ones has been discussed here.

The theories can be classified under two groups:-

 Traditional Theories

 Modern Theories

Traditional theories of Work Motivation

Among these the most important are fear and punishment theory and

carrot and stick theory

Fear and Punishment Theory

The approach involves the use of coercion and threat close supervision and

tight control of behavior. The approach was authoritarian and military in

tones and individual has no option but to either be up to standard or leave the

job. It was based on neither make reply nor reason why but do or die.

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Reward (Soft or Weak) Theory

This approach involves the offer of some reward and good working

conditions to motivate people. It is based upon the assumption that people

are motivated to the extent to which they are rewarded. Frederic Taylor is

said to the organization of this theory. But there are difficulties in this

approach. People continuously expect more, but they give less and less.

Flippo found that satisfied people were not necessarily highly motivated to

Stick to the high output moreover they often became quickly disenchanted

and rebellious if the employers could not continue to increase the wages and

benefits to keep pace with their ever increasing expectation.

Carrot and Stick Approach

This approach assumes that people can be motivated to work if rewards are

Offered or withheld. Employees are rewarded for their special

accomplishments but are penalized if their performance falls below some

Minimal level.

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Objective of Motivation

The purpose of motivation is to create conditions in which people are willing

to work with zeal, initiative, interest and enthusiasm with a high personal

and group moral satisfaction, with a sense of responsibility, loyalty and

discipline and with a pride and confidence in a most cohesive manner so that

goals of an organization are achieved effectively. Motivational technique is

utilized to stimulate employee growth. Clarence Francs indicated this when

he was the chairperson of the General Food. He said “You can buy a man’s

time, you can buy a man’s physical presence at given place; you can even

buy a measured number of skilled motions per hour or day: but you cannot

buy devotion of heart, mind and soul. You have to earn these things.

If a manager wants to get work done by his employees he can either hold out

a promise or a reward for them for doing work in a better or improved way

or he may constrain them, by instilling fear in them or by using force to do

the desired work. In other words, he may utilize positive or negative

motivation. Both these type s are widely used by management. A positive

motivation involves the possibility of increased motive satisfaction, while

negative motivation involves the possibility of decreased motive satisfaction.

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Positive or Incentive Motivation

It is generally based upon the reward. According to Flippo, “Positive

motivation is a process of attempting to influence others to do your will

through the possibility of gain or reward”. People work for incentives in the

form of four P’s of motivation: Praise, Prestige, Promotion and Pay–cheque.

Incentive motivation is the pull mechanism.

Negative or Fear Motivation

It is based upon the force and fear. Fear caused persons to act in certain way

because they are afraid of the consequences if they do not. If workers

do not work they are threaten with lay off or demotion. In other words, Fear

motivation is push mechanism. Negative motivation has certain limitation;

through its use, only the minimum of effort is put into to avoid punishment.

Moreover the imposition of punishment frequently results is frustration

among those punished, leading to the development of maladaptive behavior.

Moreover, it may result in lower productivity because it tends to dissipate

such human assets as loyalty, co-operation and espirit corps. In spite of the

demerits, negative motivation has been used to achieve the desired behavior

as in case of a break down panic or the riot. There is no management, which

has not used the negative motivation at some time or the other. However, in

recent years the trend has been towards the use of positive motivation.

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Extrinsic Motivation

It is concerned with the external motivation which employees enjoy- pay,

promotion, status, fringe benefits, retirement plans, health insurance scheme,

holidays and vacation. By and large, these motivators are associate with

financial rewards.

Intrinsic Motivation

This is concerned with the feeling of having accomplished something

worthwhile i. e. The satisfaction one gets after doing one’s work well. Praise,

responsibility, recognition, esteem, status, competition and participation are

examples of such motivation.

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Ten Tips on Improving Employee Motivation

No matter the size of your company, having a team of motivated, hard-working

employees is crucial to your business success. When people lose their

motivation, however, their

job performance suffers -- they become less productive, less creative, less of an

asset to the company.

The bottom line: You pay a heavy price when employees have motivation

issues.

How then to light a fire under an employee who has lost his or her motivation,

whether a former hard worker whose performance has declined over the years,

or a long-term problem employee who has failed to improve?

Here are 10 useful pointers on getting your employees enthused, productive,

and ready to give their all:

1. Build a foundation. It’s important to build a solid foundation for your

employees so they feel invested in the company. Tell them about the

history of the business and your vision for the future. Ask them about

their expectations and career goals, as well as how you can help them feel

part of the team. When any new employee starts, make sure he or she

receives a thorough welcome orientation.

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2. Create a positive environment. Promote an office atmosphere that

makes all employees feel worthwhile and important. Don’t play favorites

with your staff. Keep office doors open and let folks know they can

always approach you with questions or concerns. A happy office is a

productive office.

3. Put people on the right path. Most employees are looking for

advancement opportunities within their own company. Work with each of

them to develop a career growth plan that takes into consideration both

their current skills and future goals. If employees become excited about

what’s down the road, they will become more engaged in their present

work.

4. Educate the masses. Help employees improve their professional skills

by providing on-the-job training or in-house career development. Allow

them to attend workshops and seminars related to the industry.

Encourage them to attend adult education classes paid for by the

company. Employees will feel you are investing in them, and this will

translate into an improved job performance.

5. Don’t forget the fun. Once in a while you have put work aside and do

something nice for the people who work for you. Treat the office to a

pizza lunch or take everyone to the movies. Reward employees with an

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 unexpected day off or by closing the office early on a random Friday

afternoon.

6. Acknowledge contributions. You can make a huge difference in

employee morale simply by taking the time to recognize each

employee’s contributions and accomplishments, large or small. Be

generous with praise.

7. Provide incentives. Offer people incentives to perform well, either with

something small like a gift certificate or something more substantial

such as a performance-based bonus or salary increase. Give out

“Employee of the Month” awards. Such tokens of appreciation will go

far in motivating employees.

8. Honor your promises. Getting people to give their all requires

following through on promises. If you tell an employee that he or she

will be considered for a bonus if numbers improve or productivity

increases, you’d better put your money where your mouth is. Failure to

follow through on promises will result in a loss of trust -- not only that

person’s trust, but the trust of every employee that hears the story.

9. Provide career coaching. Help employees reach the next level

professionally by providing on-site coaching. Bring in professionals to

provide one-on-one counseling, which can help people learn how to

overcome personal or professional obstacles on their career paths.

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10.Match tasks to talents. You can improve employee motivation by

improving employee confidence. Assign individuals with tasks you

know they will enjoy or will be particularly good at. An employee who

is successful at one thing will have the self-confidence to tackle other

projects with renewed energy and excitement.

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Advantages of Employee Motivation

A positive motivation philosophy and practice should improve productivity,

quality, and service. Motivation helps people:

 achieve goals;

 gain a positive perspective;

 create the power to change;

 build self-esteem and capability,

 Manage their own development and help others with theirs.

Disadvantages of Motivating Staff

There are no real disadvantages to successfully motivating employees, but there

are many barriers to overcome.

Barriers may include unaware or absent managers, inadequate buildings,

outdated equipment, and entrenched attitudes, for example:

 "We don't get paid extra to work harder."

 "We've always done it this way."

 "Our bosses don't have a clue about what we do."

 "It doesn't say that in my job description."

 "I'm going to do as little as possible without getting fired."

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Employee Motivation Action Checklist

This checklist is designed for managers with responsibilities for managing,

motivating, and developing staff at a time when organizational structures and

processes are undergoing continual change.

1. Read the Gurus

Familiarize yourself with Herzberg's hygiene theory, McGregor's X and Y

theories and Maslow's hierarchy of needs. Although these theories date back

some years, they are still valid today. Consult a digest to gain a basic

understanding of their main principles; it will be invaluable for building a

climate of honesty, openness, and trust.

2. What Motivates You?

Determine which factors are important to you in your working life and how they

interact. What has motivated you and demotivated you in the past?

Understand the differences between real, longer-term motivators and short-term

spurs.

3. Find out What Your People Want from Work

People may want more status, higher pay, better working conditions, and

flexible benefits. But find out what really motivates your employees by asking

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them in performance appraisals, attitude surveys, and informal conversations

what they want most from their jobs.

Do people want, for example?

 More interesting work?

 More efficient bosses?

 More opportunity to see the end result of their work?

 Greater participation?

 Greater recognition?

 Greater challenge?

 More opportunities for development?

5. Walk the Job

every day, find someone doing something well and tell the person so. Make sure

the interest you show is genuine without going overboard or appearing to watch

over people's shoulders. If you have ideas as to how employees' work could be

improved, don't shout them out, but help them to find their way instead. Earn

respect by setting an example; it is not necessary to be able do everything better

than your staff. Make it clear what levels of support employees can expect.

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 6. Remove Demotivators

Identify factors that demotivate staff - they may be physical (buildings,

equipment) or psychological (boredom, unfairness, barriers to promotion, lack

of recognition). Some of them can be dealt with quickly and easily; others

require more planning and time to work through. The fact that you are

concerned to find out what is wrong and do something about it is in itself a

motivator.

6. Demonstrate Support

Whether your working culture is one that clamps down on mistakes and

penalizes error or a more tolerant one that espouses mistakes as learning

opportunities, your staff need to understand the kind and levels of support they

can expect. Motivation practice and relationship building often falter because

staff does not feel they are receiving adequate support.

7. Be Wary of Cash Incentives

many people say they are working for money and claim in conversation that

their fringe benefits are an incentive. But money actually comes low down in

the list of motivators, and it doesn't motivate for long after a raise. Fringe

benefits can be effective in attracting new employees, but benefits rarely

motivate existing employees to use their potential more effectively.

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 8. Decide on an Action

having listened to staff, take steps to alter your organization's policies and

attitudes, consulting fully with staff and unions. Consider policies that affect

flexible work, reward, promotion, training and development, and participation.

9. Manage Change

Adopting policies is one thing, implementing them is another. If poor

motivation is entrenched, you may need to look at the organization's whole style

of management. One of the most natural of human instincts is to resist change

even when it is designed to be beneficial. The way change is introduced has its

own power to motivate or demotivate, and can often be the key to success or

failure. If you:

 tell - instruct or deliver a monologue - you are ignoring your staff's

hopes, fears, and expectations;

 tell and sell - try to persuade people - even your most compelling

reasons will not hold sway over the long term if you don't allow

discussion;

 consult - it will be obvious if you have made up your mind

beforehand;

 look for real participation - sharing the problem solving and decision

making with those who are to implement change - you can begin to

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 expect commitment and ownership along with the adaptation and

compromise that will occur naturally.

10. Understand Learning Preferences

Change involves learning. In their Manual of Learning Styles (1992), Peter

Honey and Alan Mumford distinguish four basic styles of learning:

 Activists: like to get involved in new experiences, problems, or

opportunities. They're not too happy sitting back, observing, and

being impartial;

 Theorists: are comfortable with concepts and theory. They don't like

being thrown in at the deep end without apparent purpose or reason;

 Reflectors: like to take their time and think things through. They don't

like being pressured into rushing from one thing to another;

 Pragmatists: need a link between the subject matter and the job in

hand. They learn best when they can test things out.

As each of us learns with different styles, preferences, and

approaches, your people will respond best to stimuli and suggestions

that take account of the way they do things best.

11.Provide Feedback

Feedback is one of the most valuable elements in the motivation cycle.

Don't keep staff guessing how their development, progress, and

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 accomplishments are shaping up. Offer comments with accuracy and

care, keeping in mind next steps or future targets.

More Tips: Dos and Don'ts for Motivating Your Staff in a Time of Change

Do:

 Recognize that you don't have all the answers.

 Take time to find out what makes others tick and show genuine

caring.

 Lead, encourage, and guide staff - don't force them.

 Tell your staff what you think.

Don't:

 Don't make assumptions about what drives others.

 Don't assume others are like you.

 Don't force people into things that are supposedly good for them.

 Don't neglect the need for inspiration.

Basics about Employee Motivation (Including Steps You Can Take) Clearing

Up Common Myths about Employee Motivation

The topic of motivating employees is extremely important to managers and

supervisors. Despite the important of the topic, several myths persist --

especially among new managers and supervisors. Before looking at what

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management can do to support the motivation of employees, it's important first

to clear up these common myths.

1. Myth #1 -- "I can motivate people"

Not really -- they have to motivate themselves. You can't motivate people

anymore than you can empower them. Employees have to motivate and

empower themselves. However, you can set up an environment where they best

motivate and empower themselves. The key is knowing how to set up the

environment for each of your employees.

2. Myth #2 -- "Money is a good motivator"

Not really. Certain things like money, a nice office and job security can help

people from becoming less motivated, but they usually don't help people to

become more motivated. A key goal is to understand the motivations of each of

your employees.

3. Myth #3 -- "Fear is a damn good motivator"

Fear is a great motivator -- for a very short time. That's why a lot of yelling

from the boss won't seem to "light a spark under employees" for a very long

time.

4. Myth #4 -- "I know what motivates me, so I know what motivates my

employees"

Not really. Different people are motivated by different things. I may be greatly
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motivated by earning time away from my job to spend more time my family.

You might be motivated much more by recognition of a job well done. People

are not motivated by the same things. Again, a key goal is to understand what

motivates each of your employees.

5. Myth #5 -- "Increased job satisfaction means increased job

performance"

Research shows this isn't necessarily true at all. Increased job satisfaction does

not necessarily mean increased job performance. If the goals of the organization

are not aligned with the goals of employees, then employees aren't effectively

working toward the mission of the organization.

6. Myth #6 -- "I can't comprehend employee motivation -- it's a science"

Nah. Not true. There are some very basic steps you can take that will go a long

way toward supporting your employees to motivate themselves toward

increased performance in their jobs.

Basic Principles

1. Motivating employees starts with motivating yourself

It's amazing how, if you hate your job, it seems like everyone else does, too. If

you are very stressed out, it seems like everyone else is, too. Enthusiasm is

contagious. If you're enthusiastic about your job, it's much easier for others to

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be, too. Also, if you're doing a good job of taking care of yourself and your own

job, you'll have much clearer perspective on how others are doing in theirs.

A great place to start learning about motivation is to start understanding your

own motivations. The key to helping to motivate your employees is to

understand what motivates them. So what motivates you? Consider, for

example, time with family, recognition, a job well done, service, learning, etc.

How is your job configured to support your own motivations? What can you do

to better motivate yourself?

2. Always work to align goals of the organization with goals of employees

As mentioned above, employees can be all fired up about their work and be

working very hard. However, if the results of their work don't contribute to the

goals of the organization, then the organization is not any better off than if the

employees were sitting on their hands -- maybe worse off! Therefore, it's critical

that managers and supervisors know what they want from their employees.

These preferences should be worded in terms of goals for the organization.

Identifying the goals for the organization is usually done during strategic

planning. Whatever steps you take to support the motivation of your employees

(various steps are suggested below), ensure that employees have strong input to

identifying their goals and that these goals are aligned with goals of the

organization. (Goals should be worded to be "SMARTER". More about this

later on below.)

35
3. Key to supporting the motivation of your employees is understanding

what motivates each of them

Each person is motivated by different things. Whatever steps you take to

support the motivation of your employees, they should first include finding out

what it is that really motivates each of your employees. You can find this out by

asking them, listening to them and observing them. (More about this later on

below.)

4. Recognize that supporting employee motivation is a process, not a task

Organizations change all the time, as do people. Indeed, it is an ongoing process

to sustain an environment where each employee can strongly motivate

themselves. If you look at sustaining employee motivation as an ongoing

process, then you'll be much more fulfilled and motivated yourself.

5. Support employee motivation by using organizational systems (for

example, policies and procedures) -- don't just count on good intentions

Don't just count on cultivating strong interpersonal relationships with

employees to help motivate them. The nature of these relationships can change

greatly, for example, during times of stress. Instead, use reliable and

comprehensive systems in the workplace to help motivate employees. For

example, establish compensation systems, employee performance systems,

organizational policies and procedures, etc., to support employee motivation.

36
Also, establishing various systems and structures helps ensure clear

understanding and equitable treatment of employees.

The Motivators of Worker Productivity

As the responses of thousands of workers were tabulated and ranked in

order of motivational influence (from highest [1] to lowest [14]), a clear pattern

emerged generally as follows:

1. Sense of Achievement

2. Earned Recognition

3. Interest in the Work Itself

4. Opportunity for Growth

5. Opportunity for Advancement

6. Importance & Responsibility

7. Peer & Group Relationships

8. Salary (Pay)

9. Fairness of Supervisors

10. Company Policy & Rules

37
11. Status & Perks

12. Job Security

13. Friendliness of Supervisor

14. Working Conditions

What most motivated workers to high productivity were factors linked to

the nature of the job itself and its content, factors such as achievement,

recognition and interest in the work itself. What least motivated them - or

motivated them not at all - were factors linked merely to the work environment

such as working conditions, job security and a friendly atmosphere.

Let's note, in line with "contingency theory" above, that these are

statistical results, strong general trends; occasional individuals were obvious

exceptions to the general trends and motivated differently. Also, in line with

"contingencies," the studies were done in the booming 1960s when job security

was a rare problem, not during a recession when "job security" might appear

much higher on the general trend. But, allowing for such exceptions managers

must recognize in individual cases, the studies continued to reveal in general

which motivational factors are effective for managers, and which are not. 

Obviously, managers relying lazily on an organization's mere routines of fair

pay and decent working conditions were ignoring and making no effective use

of the many best "motivators" that drive workers to high productivity.

38
 INTRODUCTION OF THE INDUSTRY
In a recent research it was found that 60% of car sales of Rs 100 crore billion
were supported by auto loans of Rs. 40 billion. By 2013, the demand for auto
loans is estimated to increase to about Rs 120 billion. This industry came into
prominence in with the liberalization as people income levels increased and
also new players like Ford, Hyundai, general motors come to India. They
thought that India is an emerging market but when they came to India they
realized that situation is not that rosy. In order to pick up volumes companies
thought of cart financing and banks took a great interest in it as the potential
was huge market was large. The first entrant into car financing in a big way was
Citicorp who alone with Maruti launched their services in the country. Then we
saw major private banks like ICICI, HDFC, HSBC, and ABN AMRO in to
profitable market. We saw that competition increased and with that companies
started coming with new features like 0% interest schemes etc. to enter into the
market

BASICS OF AUTO LOAN

With the opening up of the Indian economy, increasing competition and wider
choice, the customer is truly “King”. This also applies to the auto industry.

In addition to the choice of vehicles, there is also a choice of vehicle financiers.

These lenders are willing to finance up to 80per cent of the cost of the vehicle!

This primer will take you through the entire gamut of purchasing a vehicle via a
loan option.

Assess your needs

Before buying a vehicle, assess your auto needs. This will depend on the
purpose of purchase, i.e. how will you use the vehicle, your family size,
requirements and your budget.

39
A checklist before buying a vehicle

 Your budget (taking into account the loan you can take). This will help
you decide the makes and models you can choose from.

 Whether you will use your vehicle mainly for work or for personal
purposes (keeping in mind your family's needs and size).

 Whether you will use you vehicle for outstation trips? If yes, then will
that happen often?

 Whether your vehicle should run on petrol or diesel? (Using diesel is

cheaper but vehicle maintenance is more costly. It is vice versa for petrol-
run vehicles).

 The periodical maintenance cost you can budget for your vehicle.

 Whether you want to go for a brand new vehicle or second hand vehicle.

Tips for second-hand car purchase:

 Purchase your vehicle from a reliable dealer.

 It is advisable to go for a vehicle not more than 3 to 4 years old. Also, it is

preferable to buy the vehicle from the first owner than from the 2nd or
3rd owner.

 Avoid purchasing a diesel-run vehicle since its engine wears out more
quickly than an engine of a petrol-run vehicle.

 Get the vehicle inspected by your mechanic to verify its condition.

 Check that all the vehicle's documents are available and in order.

 Verify that the vehicle is registered in your city. Registration done outside
the city results in payment of octroi charges.

40
  The second-hand car market is large and disorganized. It takes time to
find a suitable vehicle. Be patient and negotiate well to get the best deal.

Loan or own funds

On assessing the vehicle cost, you need to decide whether you should take a
vehicle loan or use your own funds. This must be carefully thought through
keeping in mind the following aspects:

 If your investments are earning you decent returns (more than the cost of
taking an auto loan - check our section on cost of taking a vehicle loan),
go for the loan option.

 If you have other outstanding loans, work out your funds status after
accounting repayment installments of the existing loans. If there is a
surplus, which can be used for repayments of a new loan, then taking
another loan makes sense.

41
 ABOUT AUTO WORLD

MANUFACTURERS

The auto loans market has a number of intermediaries completing the chain of
manufacturer to customer. Some of the well-known vehicle manufacturers
include companies like Hyundai, Maruti Udyog Ltd., TATA Engineering and
Locomotive Co. Ltd. (TELCO), Ford Motors and Mitsubishi.

DEALERS

Dealers are agencies, which the manufacturers use to reach their ultimate
customers. Some manufacturers have purchased dealership outfits, which sell
only their vehicles. For instance Ford Motors have its own dealerships like
VAMA Ford, Wasan Ford and Shakti Ford.

Dealers are the main middlemen between the actual consumer and the
manufacturer. Manufacturers offer dealer discounts and incentives for achieving
targeted vehicle sales. In order to entice customers, dealers pass some portion of
these discounts to the customers. In addition, dealers also run time-limited
schemes to increase sales. For instance, they may run a 'zero interest scheme' or
a 'monsoon sale scheme'. These schemes are ideal for customers, since they
offer vehicles at significant discounts.

FINANCIERS

Auto loans are available from financiers who are either banks or NBFCs (Non
Banking Finance Companies). In order to be eligible for an auto loan, the
prospective borrower has to fulfill the eligibility norms of the lender. If the bank
where you maintain your accounts also provides auto loans, it would be
preferable to approach it for a vehicle loan. The advantages are lower interest
rates and speedier processing.

42
DSA’s

Direct Selling Agents or DSA's are certified by the financier to promote their
schemes to the customers. Since they are closely working with financiers as
well as dealers, they are well aware of the market trends and various options
available making them the most reliable source of information. DSA's offer
customers a comprehensive service - right from selecting an appropriate vehicle
to obtaining the loan and paying for the purchase.

You the purchaser are the consumer. With markets becoming wider, you have a
larger choice of vehicles and financing options. Good bargains are available to
you if you take a little time and use your negotiation powers to the maximum.

For individual customers, offering the best lending rates and superior services.
All this makes it increasingly confusing while deciding on a suitable financier.
Keep the following aspects in mind while doing so…

 Calculate the effective cost of your loan (check 'Effective cost of loan'
section), which is being offered to you by various lenders. While
calculating the effective cost take into account not only the interest rates
but also other charges involved like processing fees, documentation
charges and down payment. Target the lender with the least cost.

 Negotiate for reduction of peripheral charges like processing fees and

documentation charges.

 Find out the loan prepayment penalties the financier levies. This is useful
in case you want to prepay your loan. High prepayment penalties increase
the cost of the loan. There is always a possibility that you may be in a
position to prepay the loan.

 Documentation requirements for obtaining a vehicle loan are

cumbersome and time consuming. Look out for a financier with the least

43
 amount of documentation requirements. Some financier help in getting all
the documents together.

 Service is another important feature not to be ignored. With stiff

competition in the market, every lender is giving a host of services to
their customers like collection of application form from your house, easy
processing of application and getting your vehicle delivered at your
doorstep. But remember, service comes with a cost! Maintain a balance
between the two.

 Look for a preferred financier of the manufacturer whose vehicle you

intend to purchase as this financier will generally provide you with the
most lucrative schemes, cash discount or lowest interest rates.

 Look for a financier willing to give you the maximum amount of loan
with the minimum amount of down payment.

 Longer loan tenures usually imply a higher cost of loan. Select a financier
willing to offer you tenure suitable to your repayment needs.

 Find out whether the loan repayments EMIs are calculated on reducing
balance method or not. Reducing balance method reduces the cost of the
loan.

 Have a close look at the numbers, i.e. your EMI includes all the costs
except for the registration charges and insurance. Verify that there are no
hidden charges.

Naturally, no one lender will offer all these facilities to the best levels. Select
the lender keeping in mind your priorities.

 In your past track record checked. They will also send a verification team
at your place to check your residential as well as office premises, to
confirm if they are as per the details mentioned in your application.

44
 If all the details are in order, they will calculate the loan amount that you
are eligible for and sanction the loan for the same.

 Once the loan is sanctioned, you will need to pay certain down payment
as per the loan agreement and sign the formal loan agreement.

 The banker will then issue a cheque to the dealer from whom you intend
to purchase the vehicle.

OBJECTIVES

45
 The study has been conducted with the following objectives in mind:

1. To know how brand awareness made customer to purchase product

(Hyundai car)

2. To know factors and variables of brand influence them to purchase.

3. To know what position does the brands has in the minds of customers.

4. To know how they became aware of the brand (Santro)

5. To know level of satisfaction about the brand awareness ( Santro) offered

by Hyundai.

6. To find out the market potential for Hyundai cars ( Santro).

7. To know how maintain and improve brand awareness build brand loyalty.

REVIEW OF LITERATURE

Perhaps the most distinctive skill of professional marketers is their

ability to create, maintain, protect, and enhance brands. Branding is
the art and cornerstone of marketing. The American Marketing
Association defines a brand as: a name, term, sign, symbol, or design,

46
or a combination of them, intended to identify the goods or services of
one seller or group of sellers and to differentiate them from those of
competitors. Thus a brand denitrifies the seller or maker.

“What distinguished a brand from its unbranded commodity

counterparts is the consumer’s perceptions and feelings about the
product’s commodity counterparts is the consumer’s perceptions and
feelings about the product’s attributed and how they perform.
Ultimately, a brand resides in the minds of consumers. A brand can
be better positioned by a associating its name with desirable benefits.

A brand is much more than a name, logo, colors, a tagline, or symbol .

These are marketing tools tactics. A brand is essentially a marketer’s
promise to deliver a specific set of feature, benefits and services
consistently to the buyers. The marketer must establish a mission for
the brand and a vision of what the brand must be and do.

Brand nodding occur when customers experience the company as

delivering on its benefit promise. The fact is that brands are not built
by advertising but by the brand experience. Brands vary in the
amount of power and value they have in the marketplace. At one
extreme are brands that are not known buy must buyers then there are
brands for which buyers have a fairly high degree of brand awareness.
Beyond this are brands with a high degree of brand acceptability.

We define brand equity as the positive differential effect that knowing

the brand name has on customer response to the product or service.

47
Brand equity results in customers showing a preference for one
product over another when they are basically identical. The extent to
which customers are willing to pay more for the particular brand is
measure of brand equity.

A brand needs to be carefully managed a so that its equity does not

depreciate. This requires maintaining or improving brand awareness,
perceived quality and functionality, and positive associations. These
tasks require continuous R and D investment, skillful advertising, and
excellent trade and consumer service.

History of Passenger cars in India:

The passenger car in India has been considered as luxury item. Only a
rich and the super rich could afford a car. In the 50’s and 60’s owning
a car was the ultimate statement of having made it in life. There were

48
just 3 major players namely Hindustan motors, Premier Automobiles
and Standard Motors.

The models they offered were the Baby Hindustan, its later version
called the Ambassador, the Fiat 1100 and the Standard Herald, which
fought for market share in a fairly stagnant market. The Ambassador
and the Fiat were the front-runners with the coming of the third.

There were other players in other segments like the Wily Jeep and
Mahindra & Mahindra offerings. The late 70’s saw a movement to
produce a people car an attempt to bring the less rich into the fold of
the more fortunate ones. And so a seed was sown called the Maruti
800.

HYUNDAI MOTOR COMPANY

A number of players have come in the car industry in few years, many new
models, new services and benefits according to the customer taste and
preference.

A new category continuous to be dominated by the leader like Maruti Udyog,

Hyundai, Daewoo, Fiat, Suzuki, Tata etc., but the consumers may soon be able
to pick up the models of different companies.

49
In recent years passenger’s car chassis construction has been forced to shape
itself redesigned bodies. While in the field of truck design, body chassis
problem now get simultaneous consideration to a greater extent than ever
before. Cars provided the facility to the owners that are safe, easier to drive,
more reliable and comfortable.

IMPORTENCE OF THE STUDY

The motive of the any company is to generally acquire larger market share high
% of sales the Industry, This could be only achieved by building a higher % of
brand loyal customers.

Any company can survive through there is a stiff computational the market if its
has brand loyal customer. Today many major companies in the market if its
has brand loyal customers. To day many major companies in the market try to
maintain and improve there branded equity. With out creating a proper Brand
awareness they cannot build brand image.

Strong brands help build the corporate image and also by making it eager for the
companies launch new brands. Today brands are treated, as major enduring
assets of a company-more over brand equity are major contributor to customer
equity. This all can happen only there is proper brand awareness.

The light four wheeler industry has been expanding rapidly are gone the day
when possessing a small and mid-size cars was seen as a luxury. Now days it is
viewed s a mere necessity.

50
 RESEARCH METHODOLOGY
Methodology adopted for this project work is as follows –

1. Type of Data – Primary Data Secondary Data.

2. Source of Data –Customers of Hyundai motors

3. Nature of Source of Data – Hyundai Motors, .

51
4. Data Collection Instrument – Personal Interview with Questionnaire.

5. Type of Data Collection Instrument – Non-Disguised Structured

Questionnaire.

6. Types of Questions – Open ended and Closed ended questions.

7. Sampling Methodology – Random sampling

8. Sample Size – 100.

Type of Data:-

Primary Data: Primary data is such data which is original in nature and
collected by the researcher itself for its own purposes. My project report is
based on the primary data which is collected through the questionnaire
designed according to customers.

Secondary data: Secondary data is the data which is collected prior to the
present study work. Any data that is available prior to the commencement of
the research project is called secondary data and is also called historical data.
I have collected secondary data from the website of Hyundai and some other
research papers and reports.

Type of Data Collection Instrument:-

52
Structured Questionnaire:- In this type of questionnaire the formal list of
questions to be asked to the respondents to collect facts, views or opinions.
During the course of an interview, the questions are to be asked strictly in
accordance with pre arranged order irrespective of number of interviewers
appointed.

Non-disguised Structured Questionnaire:- Here objective of an inquiry is

disclosed to the respondents. The issue involved is relatively unimportant and
more general in practical nature.

Random Sampling:-

Random sampling means systematic, pre-determined and pre-arranged

methodology is adopted for selection of sampling elements.

LIMITATIONS

Even though the project has been done without most cars, it suffers
from the following limitations.

1. Due to lack of time all customers, could not be contracted.

2. The study has been restricted to Delhi city only.

53
3. As the project is a simple sample study and is confined to 100 customers
only, if may or may not pictures the entire customer feelings.

4. The awareness levels of the customers may change from time to time and
so there is a possibility of changes in the research results.

5. Few customers refused to respond or could not respond appropriately due

to Lack of time, Ignorance etc.,

54
 PROFILE OF THE
ORGARNIZATION

COMPANY PROFILE

Hyundai Business Group is a South Korean company, which entered into

business activities way back in 1947 seeing the rapid industrialization and
modernization-taking place around the world. It brought an international

55
recognition to its country through its operations round the world and paved its
way to modern economic growth.

Hyundai group is composed of 50 subsidiaries like Ship Building, Engineering

& Construction, Heavy Industries, Machinery, Iron and Steel, Electronics,
Aerospace, Telecommunications, Information and Technology, as well as
Financing petrochemicals energy trade and service sectors.

In 1960’s it involved in the construction industry. In 1970, it concentrated on

shipbuilding, automobile, steel and machine industries and laid a foundation for
Korean heavy industry. In 1980, it launched high tech industries such as
electronics robot petroleum, space and aircraft. In 1990, developed new
technologies reformed management and stressed training human resources, with
the aim to become the No.1 Corporation in the world.

AYS Automobiles Pvt, Ltd., started the dealership of Hyundai cars at

Rajahmundry for West Godavari Districts April, 1999. So far, AYS sold about
309 Santro’s and 100 Accents and 2 Sonato’s. The company’s turnover till date
is around 16 crores.

The company has earned an amount of Rs. 72 lakhs by way of dealer margins
and sale of spares & accessories; by earning profit in the first two years of
operations.

The workshop is equipped with the latest technology equipments as per

Hyundai specifications and is contributing Rs. 25 lakhs of revenue to the
company. The total value of Machinery & Equipment is worth Rs. 25 lakhs. The
workshop also has an emergency road service to attend complaints 24 hours a
day anywhere in the territory. The show room is on the NH-5 and is designed as
per the Hyundai Motor India’s standard pattern and is well lit to display the
cars.

56
HYUNDAI MOTOR INDIA LIMITED

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

Motor Company, S. Korea and is the second largest and the fastest growing car
manufacturer in India. HMIL presently markets over 18 variants of passenger
cars across four models, the Santro in the B segment, the Accent in the C
segment, the Sonata in the E segment and the Terracan in the SUV segment.
The company recorded combined sales of 150,741 units during calendar year
2003 with both Accent & Santro emerging leaders in their respective segments.

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

boasts some of the most advanced production, quality and testing capabilities in
the country. The company is investing an additional US$ 220 Mn to expand
capacity at this plant to 250,000 units a year in line with its recent designation
as HMC’s global export hub for small cars and to cater to its upcoming product
launches India.

HMIL has sold over 500,000 cars in a record time of just over 5 years since
commencement of commercial production in September 1998 and is all set to
emerge as one of largest exporters of passenger cars and components out of
India. HMIL was recently awarded the benchmark ISO 14001 certification
for its sustainable environment management practices.

Hyundai’s fully integrated manufacturing capabilities include:

The Press Shop

A computer controlled line that converts sheet metal to body panels of high
dimensional accuracy and consistency.

57
The Body Shop

A hi-tech line that builds full body shells from panels. Automated robotic arms
are used for intricate welding operations that ensure superior and consistent
build quality.

The Paint Shop

This is one of the most modern paint shops in the country and uses the
environment friendly water based process for superior and lasting exterior. A
unique process management system followed here helps us deliver the most
extensive colour range, independent of minimum batch requirements, helping
customers get their preferred colour anytime.

The Aluminum Fondry

Forges the engine cylinder blocks for our cars to exacting design specifications.

The Engine and Transmission Shop

One of the biggest engine shops in the country, this unit is equipped with the
most modern tooling and testing facilities to make a wide range of engines in
house.

The Plastic Extrusion Unit

Moulds the dashes, bumpers and other plastic components to perfect fit and
finish.

The Plastic Paint Shop

One of the very few manufacturing units in India to have this facility in-house,
Hyundai’s plastic paint shop delivers a high grade finish on exterior plastic
components.

58
The Test Track

With comprehensive performance testing facilities like rattle testing and ABS
brake testing, this track is designed to meet pre-delivery (PDI) certification
standards to exacting Euro specifications.

Brand-Strategy Decisions:

A company has five choices when it comes to brand strategy. There are line
extensions, brand extensions, multi-brands, new brands and co-brands.

1. Line Extension:

Line Extensions consist of introducing additional items in the same product

category under the same brand name, such as new flavors, forms, colors, added
ingredients and package sizes.

Brand Extensions:

A company may use its existing brand name to launch new products in other
categories.

1. Multi-Brands:

A Company will often introduce additional brands in the same product category.
Sometimes the company is trying to establish different features or appeal to
different buying motives.

2. New Brands:

When a Company launches products in a new category, it may find that none of
its current brand names are appropriate.

59
3. Co-Brands

Co-Brands are also called as dual branding, in which two or more well known
brands are combined in an offer. Co-branding takes a variety of forms. One is
ingredient co-branding, Second one is same company co-branding, Third one is
joint venture co-branding. And finally there is multiple-sponsor co-branding.

Brand Repositioning:

However well a brand is currently positioned, the company may have to

reposition it later when facing new competitors or changing customer
preferences.

Brand Awareness: Nine Brand Strengtheners:

As Companies become more aware of the importance of brand power, they

wonder how they can strengthen their brands. Most managers think the answer
lies in increasing the advertising budget. But advertising is expensive and it is
not always effective. Advertising is only one of nine ways to build more brand
awareness and brand preference.

 Develop creative advertising.

 Sponsor well-regarded events.

 Invite your customers to join a club .

 Invite the public to visit your factory or office

 Create your own retail units.

 Provide well-appreciated public services.

60
 Give visible support to some social causes.

 Be known as a value leader.

 Develop a strong spokesperson or symbol to represent the Company.

Brand-Sponsor Decision:

A manufacturer has several options with respect to brand sponsorship.

The product may be launched as a manufacturer brand (sometimes called as
National Brand), a distributor brand (also called reseller, store, house or private
brand), or a licensed brand name. Another alternative is for the manufacturer to
produce some output under its own name and some under reseller labels.
Manufacturers brands dominate, large retailers and wholesalers have been
developing their own brands by contracting production from willing
manufacturers.

The private brands offer two advantages. First, they are more profitable.
Intermediaries search for manufacturer with excess capacity who will produce
the private labels at a low cost. Other costs, such as research and development,
advertising, sales production and physical distribution are much lower. This
means that the private brands can charge a lower price and yet make a higher
profit margin. Second, retailers develop exclusive store brands to differentiate
themselves from competitors.

Brands vary in the amount of power and value they have in the market place. At
one extreme are brands that are not known by most buyers. Then there are
brands for which buyers have a fairly high degree of brand awareness. Beyond
this are brands with a high degree of brand acceptability. Then there are brand

61
that enjoy a high degree of brand preference. Finally there are brands that
command an high degree of brand loyalty.

The following are the 5 levels of customer attitudes toward his/her brand
from lowest to highest:

 Customer will change brands, especially for price reasons, not brand loyalty

 Customer is satisfied. No reason to change the brand.

 Customer is satisfied and would incur costs by changing brand.

 Customer values the brand and sees it as a friend.

 Customer is devoted to the brand.

Brand equity is related to how many customers are in classes 3,4 or5. It is
also related to the degree of brand-name recognition, perceived brand equity,
strong mental and emotional associations and other assets such as patents,
trademarks and channel relationships. Companies do not normally list brand
equity on their balance sheet because of the arbitrariness of the estimate. But
clearly brand equity relates to the premium the brand commands times the
extra volume it moves over an average brand.

The world’s 10 most valuable brands in 1997 in rank order were coca-
cola, Marlboro, IBM, McDonald’s, Disney, Sony, Kodak, Intel, Gillette and
Budweiser.

High brand equity provides a number of competitive advantage:

 The Company will enjoy reduced marketing costs because of consumer

brand awareness and loyalty.

62
 The Company will have more trade leverage in bargaining with distributors
and retailers because customers expect them to carry the brand.

 The Company can charge a higher price than its competitors because the
brand has higher perceived quality.

 The Company can more easily launch extensions because the brand name
carries high credibility.

 The brand offers the company some defense against price competition.

A brand name needs to be carefully managed so that its equity doesn’t

depreciate. This requires maintaining or improving brand awareness perceived
quality and functionality, and positive associations. These tasks require
continuous research and development investment, skillful advertising and
excellent trade and consumer service.

AN OVERVIEW OF BRANDING DECISIONS

Branding Brand Sponsor Brand Name

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Decisions Decisions

 Individual Names
 Manufacturers  Blanket Family Name
 Brand Brand  Separate Family
 No Brand  Distributors  Company Individual
(Pvt) Brand Names

Brand Strategy Decisions Brand-Repositioning Decisions

 Line Extension
 Brand Extension  Repositioning
 Multi-Brands  No Repositioning
 New Brands
 Co-Brands

OVER VIEW OF THE INDIAN CAR MARKET

Automobile industry in India is currently experiencing demand for the

vehicles of different types. This is due to volcanic increase in the number of the

64
vehicles of all categories and all types of the vehicles. The reason for this is the
Indian economy which was closed till then.

This is the sectors of the economy which benefited greatly by

globalization and liberalization.

The face of the industry has changed to such an extent just a decade age
one would fail to recognize it as the Indian auto industry. Today the Indian
market does not witness just as Ambassador Fiat competition. Rather it has
become a battle field for it is witnessing cut throat competition between the
world from this brands like FORD, HONDA, MERCEDES, HYUNDAI,
DAEWOO. Infact the leading market leader MARUTI has lost a sizable crunch
of its market share from a magical mesmerizing 80% to 66.2% during the same
period.

Hyundai plant was setup in Sriperambundur, 30km outside Chennai in a

record time. This shows a commitment to the Indian customer and Indian auto
industry. The first Hyundai Santro was launched on October 20, 1998. Santro
was set to be the best package for the budget car buyer.

Y.S.KIM (Yang. Soo.Kim) is the Managing Director of Hyundai Motor

India. The Korea and Indian Engineers pore their efforts for the efforts for the
production Santro prototypes. The manufacturing style of Hyundai Santro has
not been the same as Maruti Udyog, which initially imported C.K.D kits for the
first Maruti 800. The manufacturing process begins with coiled steel arriving
from South Korea. The entire auto industries in India rely on imported steel to
manufacture vehicle body structure, as locally available steel cannot be
effective.

65
 The assemble of the car is mostly manual HMI has set up a allimem
foundry on site to produces cast components like cylinder heads and gear box
casings. The reasons for Hyundai rapid implementation were wholly owned
subsidiary HMI could speed up the decision making process. It did not have to
conduct a local partner which might have slowed things down.

This points towards two things the market has become competitive and
dynamic

1. Even the market leader cannot take its market share and the customers

2. The changing tastes and loyalty of the customers and subsequently the ultra
competition nature of the auto market.

66
 Scope of the Study

The overall scope of the present study considers all the variables and factors
that have major impact over the customers in considering particular brands.
This especially included how a customer regally evaluate recognizes the brand
and what position particular brand occupies in the customer mind.

This includes how a customer gets attracted towards the brands and what makes
a brand highly significant over their competitive brand. The study includes how
hand awareness among potential customers can be maintained and improves.

The project has been done in Delhi city only. The survey was confined only to
Hyundai customers to presently posses only Santro. The survey was especially
focused on existing Santro owners for finding how they are influenced by the
brand and what made them aware of the brand. After the survey was done the
data was analyzed and also relevant suggesting were made in order to improve
its brand awareness towards Santro

67
DATA ANALYSIS AND
INTERPRETATION

68
 1. AGE GROUP

AGE GROUP NO.OF CUSTOMERS PERCENTAGE

25-45 48 48%

45-65 45 35%

65 And Above 8 17%

Total 100 100%

60

50

40
25-45
30 45-65
65 And Above
20

10

0
NO.OF CUSTOMERS
Int
erpretation: From the above table, we can observe that 52% of the people
belongs to 25 – 45 age group, 40% of the people belongs to 45 - 65 age group
and 8% of the people belongs to 65 and above. The analysis shows that most of
the people belongs to 25 – 45 age.

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 2. GENDER

NO. OF
GENDER PERCENTAGE
CUSTOMERS

Male 87 87%

Female 13 13%

Total 100 100%

13%

87%

Interpretation:

From the above table we can observe that among 200 customers 87% are Males
and 13% are Females.

70
 3. Occupation

OCCUPATION NO.OF CUSTOMERS PERCENTAGE

Business 38 38%

Professional 30 30%

Student 7 7%

Employee 25 25%

Total 100 100%

38
40 30
35 25
30 Business
25 Professional
20 Student
7
15 Employee
10
5
0
NO.OF CUSTOMERS

Interpretation: From the above table, we see that 38% of the people belongs to
Business, 30% of the people from Professionals, 7% of the people from students
and 25% of the People belongs to Employees. The analysis shows that major
part of the people belongs to Business category.

71
 4. INCOME STATUS (PER ANNUM)

NO. OF
INCOME PERCENTAGE
CUSTOMERS

< 20,000 34 34%

20,000-40,000 52 52%

40,000 & above 14 14%

Total 100 100%

Interpretation: The income status reveals that 34% of them are having less

14%

34%

52%

than 20,000 and 52% of them were between 20,000-40,000 and the remaining
14% were above 40,000. The analysis shows that the people who having income
per annum in between 20,000-40,000 are more.

72
 5. FAMILY SIZE

NO. OF
FAMILY SIZE PERCENTAGE
CUSTOMERS

1-2 10 10%

3-5 78 78%

5 & above 12 12%

Total 100 100%

90
80
70
60
50
40
30
20
10
0
1 to 2 3 to 5 5 & above

Interpretation:Family size reveals that 10% of the people are having 1-2 family
size, 78% of the people are having 3-5 family size and 12% of the people are
having above 5 family size. The analysis shows that the family size having 3-5
are using more.

73
 6. PURPOSE OF PURCHASE

NO. OF
PURPOSE PERCENTAGE
CUSTOMERS

Utility 45 45%

Necessity 51 51%

Status 4 4%

Total 100 100%

60 51
45
50

40

30

20
4
10

0
Utility Necessity Status

Interpretation:

From the table, we can observe that 45% of the people purchase the car for the
purpose of utility, 51% of the people purchase for necessity and 4% people
purchase for status. The analysis shows that most of the people that is 51%
purchase for necessity.

74
 7. Factors Influence To Buy Santro

FACTORS NO.OF CUSTOMERS PERCENTAGE

Style 14 14%

Price 18 18%

Brand image 30 30%

Performance 20 20%

Publicity 18 18%

Total 100 100%

30
25 Style
20 Price
15 Brand image
Performance
10 Publicity
5
0
NO.OF CUSTOMERS

Interpretation:From the table, we can examine that 14% of the people prefer
style, 18% of the people prefer price, 30% of the people opt for Brand image,
20% of the people have a preference on Performance and 18% of the people
opt for Publicity for buying the Santro Car. The analysis shows most of them
consider Brand image while buying.

75
 8. Influecne To Purchase The Car

FACTORS NO.OF CUSTOMERS PERCENTAGE

Myself 20 30%

Family Members 15 15%

Friends 22 22%

Relatives 5 5%

Advertisements 34 34%

Others 4 4%

Total 100 100%

0.34
35% 0.3
30% 0.22
Myself
25% Family Members
20% 0.15 Friends
15% Relatives
0.05 Advertisements
10% 0.04
Others
5%
0%
PERCENTAGE

Interpretation: 20% of the people are decided to purchase the car on

themselves, 15% of the people are influenced by family members, 22% of the
people are influenced by relatives, 34% of the people are nfluenced by
advertisements and rest of the people are influenced by other factors..

76
9. Impact Of Shahrukh Khan On Sales

NO. OF
IMPACT PERCENTAGE
CUSTOMERS

Yes 56 56%

No 44 44%

Total 100 100%

44%

56%

Interpretation:

From the table, we see that 56% of the people say that Sharukh Khan has
the impact of increase in sales whereas 44% of the people say that Sharukh
Khan has no impact of increase in sales.

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 10.GOOD VALUE

NO. OF
GOOD VALUE PERCENTAGE
CUSTOMERS

Yes 92 92%

No 8 8%

Total 100 100%

Interpretation:

92
100
90
80
70
60
50
40
30
20 8
10
0
Yes No

From the table, we observe that 92% of the people feel that Hyundai products
give Good Value for money whereas 8% of the people feel that Hyundai
products do not give Good Value for money.

78
 11.PRICING OF THE CAR

NO. OF
PRICING LEVEL PERCENTAGE
CUSTOMERS

Excellent 5 5%

Good 64 64%

Satisfactory 31 31%

Not satisfied - -

Total 100 100%

Excellent
Satisfactory

Good

Interpretation: From the table, we observe that 5% of the people feel that the
Price of the car is Excellent, 64% of the people feel that it is Good, 31% feel it
is satisfactory and none of them are dissatisfied with the Price of the product.
The Highest % of the people feel that the Price of the car is Good.

79
 12.Superior To Competitors Cars

SUPERIOR CUSTOMERS PERCENTAGE

Yes 89 89%

No 11 11%

Total 100 100%

100
89
90
80
70
60
50
40
30
20
11
10
0
Yes No

Interpretation:

From the table, we can observe that 89% of the people say that Santro car is
superior to competitors cars and 11% says that it is not.

80
 FINDINGS

The following details can be inferred after analysis with a simple size of 100,
which included customers, by questionnaire method to find out the brand
awareness towards Santro with reference to HYUNDAI.

 Most of the customers relating to Hyundai belong to the category of

employees as they occupy 30% of the entire customers. The next to them
comes industrialists as they occupy 24% of the customers.

 Most of the customers have bought the car 2 years back.

 The promotional strategy of Hyundai is advertisement of which electronic

media and by press media are playing a vital role.

 Out of the models of Hyundai the most popular brand is Santro because it is
possessed by 45% of the customers.

 Most of the customers are aware of educational programs that are being
conducted by Hyundai to the maintenance of the car.

 Though the customers are having good awareness levels regarding the
programs being conducted by Hyundai, they are not attending the programs
because of various reasons.

 The customers find some problem’s regarding the mileage of Santro while
comparing with the remaining models.

81
 CONCLUSION

1. The market of Hyundai cars (Santro, Accent and Sonata) is growing at rapid
speed. Hyundai being one of the dominating and leading players in passenger
car market is expected to attract significant attention among the investors.

2.In this Automobile segment there has been heightened competition with other
leading players like Maruti, Honda, Ford and many others.

3.As there was competition in small car industry, there was reduction in prices
of the cars and modifications done with the existing product (e.g., Santro to
Santro Xing) and were introduced in the market. Hyundai small car segment has
occupied second position in the market share.

4.Majority of the people have informed Brand Awareness toward Santro. Most
of the customers are very much satisfied with the services offered by the
company while few of them are not satisfied due to minor problems of the car.

5.Many of the students rated the Brand Awareness as excellent very few of
them have rated as satisfactory.

6.All the respondents are very happy with the warranty period given for the cars
by the company but many of them have complaints with the mileage and seating
comfort of the car.

7.Many of the respondents have stated that the prices charged on services are
high when compare to other company’s services (e.g. Maruti)

Finally the customers are very happy about Brand Awareness toward
Santro.

82
 RECOMMENDATIONS

1. Basing on the survey findings and analyzing the attitudes of respondents, the
following suggestions can be given regarding the Brand Awareness towards
Santro.

2. The company has to pursue the complaints of the respondents about the
performance of the car’s engine. This suggestions has been given basing on
the complaints of customers regarding its problems like low mileage

3. Making the Driving seat and Passenger seat more comfortable so that the
driver and passengers could have a comfortable drive.

4. Analyzing the complaints given by many customers regarding uncomfortable

seats has made its suggestion.

5. Transaction and value based loyalty programs can be conducted

83
 BIBLIOGRAPHY

Book referred

1. ‘Marketing Management’ by Philip Kotler

2. Training book (Hyundai motor)

Websites referred

1. www..com

2. www.hyundaimotors.org

84
 QUESTIONNAIRE

(With Reference to Hyundai Santro)

NAME OF THE RESPONDENT:

ADDRESS OF THE RESPONDENT:

PHONE NO:

1. AGE GROUP:

(a) 25-45 (b) 45-65 (c) 65 & above

2. GENDER:

(a) Male (b) Female

3. OCCUPATION:

(a) Business b) Professional (c) Student (d) Employee

4. INCOME PER ANNUM:

(a) < Rs. 2,00,000/- b) Rs. 2,00,000/- to Rs. 4,00,000/-

(c) Rs. 4,00,000 and above

85
5. FAMILY SIZE:

(a) 1-2 b) 3-5 c) 5& above

6. PURPOSE OF PURCHASE OF THIS CAR:

(a) Utility (b) Necessity (c) Status

7. WHAT INFLUENCED TO BUY SANTRO

a) Styling b) Pricing (c) Brand Image

(d) Performance (e) Publicity

8. WHO INFLUENCED YOU TO PURCHASE THE CAR?

(a) Myself (b) Family Members c) Friends

(d) Relatives(e) Advertisements (f) Others

9. WHY DID YOU PURCHASE ONLY SANTRO INSTEAD OF ANY

OTHER SMALL CAR?

(a) Quality b) East to drive

(c) Comfort d) Technically good

10.DO YOU FEEL THAT BRAND AMBASSADOR SHARUKH KHAN HAS

AN IMPACT ON THE INCREASE IN SALES?

(a) Yes (b) No

86
11.HOW DO YOU FEEL THE PRICING OF THE CAR?

(a) Excellent b) Good

(c) Satisfactory (d) Unsatisfactory

12.DO YOU FEEL THAT SANTRO IS SUPERIOR TO COMPETITORS

CARS IN THIS SEGMENT?

(a) Yes (b) No

13.YOUR COMMENTS AND SUGGESTIONS, IF ANY?

________________________________________________________________
________________________________________________________________
____

87