A MINOR PROJECT

ON
“MARKETING STRATEGIES OF AUTOMOBILES
COMPANY IN INDIA”

SUPERVISED BY: SUBMITTED BY:

MR. MAYANK SRIVASTAV SUSHANT MITTAL
3RD YEAR 6TH SEMESTER
ROLL NO.: 2111640980062

GOEL INSTITUTE OF HIGHER STUDIES

MAHAVIDYALAYA, LUCKNOW

LUCKNOW UNIVERSITY, LUCKNOW

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 ACKNOWLEDGEMENT
The present work is an effort to throw some light on “Marketing Strategies of Automobiles

Company in India.” I give my regards and sincere thanks to for allowing me to do this

Minor report.

With deep sense of gratitude I acknowledge the encouragement and guidance received by my

faculty guide Mr. Mayank Srivastav for her earnest coordination and valuable efforts. She

constantly encouraged me right from the inception to final preparation of my project. She has

been a constant source of knowledge, information, help and motivation for me through her

depth knowledge and experiences. The work would not have been possible to come to the

present shape without the able guidance, supervision and help to me by number of people.

I convey my heart full affection to all those people who helped and supported me during the

course, for completion of my Project Report.

SUSHANT MITTAL
Roll No.: 2111640980062
(BBA) 6th Sem

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 TABLE OF CONTENT

Acknowledgement

Sr. No. Topic Page no.

1. Introduction 1-52

2. Literature Review 53-56

3. Methodology 56-59

4. Results 60-75

5. Discussion 76-77

6. Conclusion 78

7. References 79-80

8. Appendix 81-84

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 INTRODUCTION

The transportation system is a sign of technological wonder by human kind that satisfies
one of the most basic needs of human being, mobility. The automobile industry is a
major component of surface transport and plays an important role in the economic
development of the country. It is the industry that paves the way for reforms in foreign
trade, invites foreign investment and facilitates contact with a country on a very large
international platform. The automobile industry in India has long been recognized as a
major manufacturing sector, promoting national economic growth and the development
of technological capabilities through its powerful backward and forward linkages and
within domestic economies Localization of high value-added manufacturing processes
has been
promoted. For example, in recent years, the Indian automobile industry contributes about
5% of GDP and aims to grow five-fold by 2016 and exceed 10% of India's GDP (DBS
Cholamandalam Securities Limited Sector Report, 2012). The industry is therefore
recognized as one of the drivers of economic growth as it contributes significantly to the
nation's GDP.

Automobile Industry in India – An Insight

The history of the automobile began 5,000 years ago when the first wheel was used for
transportation, probably on the chariot of Mesopotamia in 3200 BCE. The dawn of
automobiles in India actually goes back to 4000 BCE when the wheel was used for
movement for the first time in India as a chariot. Since then it has come a long way, from
the chariot to the bullock cart, to the jet-age (The Great Idea Finder, 2005). Today, the
Indian automobile industry comprises all vehicles, including 2-3 wheel vehicles,
passenger cars and multi-utility vehicles, light and heavy commercial vehicles, and
agricultural tractors and other earth moving machinery, as well as component segments
of all these categories. .
The automobile industry in India is still in its infancy but growing rapidly. Opportunities
in the automobile industry in India are attracting big names with large purses and they are
investing vigorously in infrastructure, design and development, and marketing.
Despite the economic downturn, the Indian automobile sector has shown high growth.
The passenger vehicle market, which constitutes about 80% of automobile sales, has the
potential to grow enormously as passenger car stock stood at about 1,000 per 1,000

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people in 2012. Given the potential of the future market, passenger vehicle production is
projected to grow at a compound. Annual growth rate (CAGR) of about 10% from 2009-
10 to 2012-13. It took Indian automobile production from 200 Million- 02 units in 2010-
02 to 10–1 million units in 0–20–20 to 20.3 million units in 2011–12.

Indian Automobile Industry

The industry is characterized by a very high percentage (around 80%) of the production
of 2-3 wheels vehicles (Ray, 2012). The Indian automobile industry is home to the largest
motorcycle manufacturer, the second largest two-wheeler manufacturer and the fifth
largest commercial vehicle manufacturer in the world. The industry is producing around
13 lakh passenger vehicles, 4 lakh commercial vehicles, 76 lakh two-wheelers and about
3 lakh tractors. The automobile industry has generated a turnover of US $ 28 billion and
the auto component industry has reached a turnover of US $ 10 billion. The Indian tire
industry, which is an integral part of the Indian automotive industry, has registered a
turnover of approximately US $ 3 billion (Automotive Mission Plan, 2006–16). India is
emerging as one of the fastest growing passenger car markets in the world, growing at an
average rate of 16–17% per year since 2005. In the year 2011, the domestic market stood
at 2.6 million vehicles and was expected to grow to 3 million by 2012.
According to recent reports, India's passenger car and commercial vehicle manufacturing
industry is the 6th largest unit in the world in 2011, with an annual output of over 3.9
million units. India is the fastest growing automobile market in the world (after China) as
compared to 3.7 million automotive vehicles produced in 2010, due to 33.9% production
growth in automotive vehicles. Annual vehicle sales are projected to grow by 5 million
and more than 9 million by the year 2015. By 2050, the country is expected to top the
world in car volume with around 611 million vehicles.

Competitive Picture of Indian Automobile Industry

India has many competitive advantages in the automobile sector worldwide. The Indian
market offers endless possibilities for investors. Investment in technology by producers
has been high. Currently, India's per capita disposable income and growth in exports are
playing a major role in the rise and competitiveness of the industry. The competitive
landscape of the industry has been developed by the India Brand Equity Foundation
(2006) using the Porter (1990) Diamond Framework as shown in Figure 1.2. Being one
of the fastest growing sectors in the world, the dynamic growth stages of the automobile

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industry are explained by the nature of competition, product life cycle and consumer
demand. "Consumerism" is dominating the Indian market, leading to economic reforms
and several agreements signed under the World Trade Organization.
The transition is occurring primarily from the "seller’s market" to the "buyers’ market",
where the choice a consumer makes is influenced by the level of consumer awareness
achieved.
India as a developing state is breaking the barriers of the world and moving towards a
developed state with its world-class technology, market and consumer power. India has a
population of over 1.21 billion, the second largest in the world and more than three
hundred million middle class. One of the reasons for the growth of the car industry is the
high disposable income of the middle class and the increase in their standard of living.
Due to its large market, low base of car ownership and growing economy, India has
become a major attraction for car manufacturers around the world. Both Indian and
global automotive giants, including General Motors (GM), Volkswagen, Honda, and
Hyundai have announced huge expansion plans (Aeschcon, 2012). India is expected to
overtake China as the world's fastest growing car market in terms of number of units sold
and the automobile industry is one of the fastest growing manufacturing sectors in India.
India is emerging as a supply hub to meet the world demand for sport utility vehicles
(SUVs). Major global carmakers are looking to leverage manufacturing practices below
India's cost and assess opportunities to export SUVs to Europe, South Africa and
Southeast Asia. India has the largest base for exporting compact cars to Europe. In
addition, hybrid and electronic cars are new developments on the automobile canvas and
India is one of the major markets for them. Global and Indian car manufacturers are
focusing their efforts on developing innovative products, technologies and supply chains.
The automotive plants of global car manufacturers in India top the world in terms of their
productivity and quality. Top auto multinational car manufacturers such as Hyundai,
Toyota and Suzuki place their Indian production facilities at the top of their global
Peking order (IBEF, 2013).
This extra-ordinary growth of the car industry is mainly due to fundamental regulatory
changes in the Indian industrial sector as a result of recent economic reform programs.
This is particularly supported by the economic conditions in the financial sector, which
have played a large role in boosting demand and maintaining long-term growth in the
industry.

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Origin and development of industry
The automobile manufacturing industry in India dates to 1948. At that time there were
three companies manufacturing passenger cars in Mumbai, such as Premier Automobile,
Hindustan Motors (HM) in Kolkata and Standard Motors Products India in Chennai. In
the early years, the Indian automobile industry faced many challenges and road blocks to
development as automobile manufacturing in those days was subject to restrictive tariff
structure, strict licensing and limited avenues for expansion. Initially due to lack of
competition the prices of cars were very high. And customers had to wait a long time for
the car. Before independence, India was considered a market for imported vehicles. The
arrival of Tata Motors, Mahindra & Mahindra and Bajaj Auto in the 1950s saw a steady
increase in vehicle production in India. In 1953 the Government of India and the private
sector began efforts to create an automotive component manufacturing industry to supply
to the automobile industry. The late 1970s saw significant changes in the automobile
industry. The automobile industry began to grow after 1970, but this growth was mainly
driven by scooters, tractors and commercial vehicles.
In 1983, the Government of India in association with Suzuki Motor Corporation of Japan
manufactured low-cost cars in India. The Maruti 800, still known as the Maruti Udyog
Ltd. factory in December 1983, changed not only India's automobile industry but also the
way people move and travel. India opened its doors to all countries through a
liberalization initiative in the 1990s and in 1993, the government followed its
liberalization measures with a significant reduction in import duties on automobile
components. Today, the Indian automobile market is a mix of big domestic automobile
players including Tata Motors, Mahindra & Mahindra, Bajaj, Hero MotoCorp, Ashok
Leyland and leading international giants like Suzuki, Honda, BMW, Audi,
DaimlerChrysler, Volvo, Hyundai, Toyota, Nissan, General Motors, and Ford etc.

PROFILE OF AUTOMOBILE INDUSTRY & CAR MANUFACTURERS

The automobile sector is an important player in the global and Indian economy. The
global automotive industry (four-wheeler) contributes 5 percent directly to total
manufacturing employment, 12.9 percent of total production output value, and 8.3
percent of total industrial investment. It contributes US $ 560 billion to the public
revenues of various countries, in terms of taxes on fuel, circulation, sales and registration.
The annual turnover of the global auto industry is around US $ 5.09 trillion, equivalent to

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the sixth largest economy in the world (Organization Internationale des Constructors
Deotembilles, 2006). In addition, the auto industry is linked to many other sectors in the
economy and hence its indirect contribution far exceeds this. It is considered as a major
economic region throughout the world due to its macroeconomic relations.

Construction of 7.9 million vehicles in India, including 1.3 million passenger cars,
amounted to 2.4 percent and 7 percent of global production respectively. Auto-
components manufacturing is another major player in the Indian automotive industry.
India's exports to the region increased from US $ 1.0 billion in 2003-04 to US $ 1.8
billion in 2005-06, contributing 1 percent to world trade in auto components in the
current USD.

In India, the automobile industry provides direct employment to about 5 lakh people. It
contributes 4.7 percent to India's GDP and 19 percent to India's indirect tax revenue. By
the early 1980s, there were very few players in the Indian auto sector, suffering from low
production volumes, obsolete and inferior technologies. With de-licensing in the 1980s
and opening of the sector to FDI in 1993, the sector has grown rapidly due to the entry of
global players. The rapidly growing middle class, rising per capita income and relatively
easy availability of finance are driving up vehicle demand in India, prompting the
government to invest at unprecedented levels in road infrastructure, including the Golden
Quadrilateral and Projects like North are included. East-South-West Corridor with feeder
roads. 2 The Reserve Bank of India (RBI) annual policy statement documents a 37.9
percent annual increase in credit flow to the vehicle industry in 2006. Given that the
passenger car penetration rate is around 8.5 per thousand vehicles, the lowest in the
world, there is a huge demand for automobiles in the country.

ORGANISED AUTO SECTOR IN INDIA:

While Original Equipment Manufacturers (OEMs) are at the top of the auto supply chain,
it should be noted that there are some OEMs in India that supply certain components to
other OEMs in India or abroad. Most Indian OEMs are members of the Society of Indian
Automobiles Manufacturer (SIAM), while most of the Tier-1 auto component
manufacturers are members of the Automobile Component Manufacturers Association
(ACMA). These are all in the organized sector and supply Tier-1 players in India and

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abroad or overseas directly to OEMs. Tier-2 and Tier-3 auto component manufacturers
are relatively small players. Although some Tier-2 players are in the organized sector,
most of them are in the unorganized sector. Tier-3 manufacturers include all auto
component suppliers in the unorganized sector, including some own account creation
enterprises (OAME) that work with a working owner and his family members, including
a lathe in manufacturing such as a single machine Involves the use of. Auto-component
manufacturers cater not only to OEMs, but also to the after-sales market. In recent years,
the character of the automotive aftermarket has changed rapidly, as a fast-maturing
organized, skill- intensive and knowledge-driven activity. Therefore, the auto industry in
India has a very diverse and complex structure in terms of scale, nature of operations,
market structure etc.

However, production, abandonment and gross value-added (GVA) in both the automobile
and auto-component industries are on the rise, the latter increasing employment and
decreasing employment declines despite an increase in total emissions. There is a
concern in the automobile sector. This also indicates that real labor costs are increasing.
Growth rates in gross value addition have been quite impressive in both sub-sectors,
higher in automobile manufacturing
Area.

UNORGANISED AUTO SECTOR IN INDIA:

There are such enterprises in the unorganized sector, there are enterprises in the
unorganized sector which are not registered under certain categories.
Factories Act .20 In this section, the data from the unorganized manufacturing sector of
the National Sample Survey Organization (NSSO) is used. The unorganized auto sector
in India has grown in terms of number of enterprises, employment, production, capital,
capital intensity and labor productivity. However, capital productivity declined
significantly. Very similar trends have been observed in rural and urban areas like
OAME, NDME and DME21. However, it is clear that the growth of this sector has been
much lower in rural areas than in urban areas. Rural-urban disparities are even more
striking. It is clear that the rural unorganized sector is much smaller in the auto industry
than its urban counterpart. However, rural areas still constitute a major part of OAME.
Thus, it can be inferred that only small players, even among small firms under the
unorganized sector, prefer to do business in rural areas. These observations point to the

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importance of making rural areas more attractive to all industries, including the auto
industry, by increasing infrastructure and initiating incentives, given the current levels of
urban congestion and similar infrastructure bottlenecks. While the unorganized auto
sector employment share in the entire auto industry has increased from 16 percent in
1994-95 to 30 percent in 2000-01, the unorganized auto sector's share in the total value of
auto production has only increased from 2 percent to 3 percent. . The unorganized auto
sector's share in the total capital stock employed in the vehicle industry has increased
from 4 percent to 8 percent during this period. In 2005- 06, the number of enterprises in
the unorganized sector in the organized sector was almost 10 times higher. Those who
are not registered under certain categories Factories Act .20 In this section, the data from
the unorganized manufacturing sector of the National Sample Survey Organization
(NSSO) is used.

The unorganized auto sector in India has grown in terms of number of enterprises,
employment, production, capital, capital intensity and labor productivity. However,
capital productivity declined significantly. Very similar trends have been observed in
rural and urban areas like OAME, NDME and DME21. However, it is clear that the
growth of this sector has been much lower in rural areas than in urban areas. Rural-urban
disparities are even more striking. It is clear that the rural unorganized sector is much
smaller in the auto industry than its urban counterpart. However, rural areas still
constitute a major part of OAME. Thus, it can be inferred that only small players, even
among small firms under the unorganized sector, prefer to do business in rural areas.
These observations point to the importance of making rural areas more attractive to all
industries, including the auto industry, by increasing infrastructure and initiating
incentives, given the current levels of urban congestion and similar infrastructure
bottlenecks. While the unorganized auto sector employment share in the entire auto
industry has increased from 16 percent in 1994-95 to 30 percent in 2000-01, the
unorganized auto sector's share in the total value of auto production has only increased
from 2 percent to 3 percent. . The unorganized auto sector's share in the total capital stock
employed in the vehicle industry has increased from 4 percent to 8 percent during this
period. In 2005- 06, the number of enterprises in the unorganized sector in the organized
sector was almost 10 times higher.
THE FIRST INDAIN AUTOMOBILE COMPANY

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Hindustan Motors: Hindustan Motors is one of the leading electric motors
manufacturers in India with ISO 9001 certification. It is the first Indian car company to
start production in India in 1942. Since then, it has grown into a large company that
manufactures cars such as the strong ambassador, the elegant Contessa, and together with
Mitsubishi of Japan now makes the new Mitsubishi Lancer.
The company began production of Landmaster in 1954 and Ambassador production in
1957.
In addition, its collaboration with General Motors Corporation of USA, UK, Marion
Power Shovel Company Vauxhall Motors, and USA launched new products. With an
annual turnover of one billion, Hindustan Motors manufactures utility vehicles, passenger
cars, earthmoving equipment and other power products. Its various manufacturing units
are spread across India - Pithampur in Madhya Pradesh, Uttarpara in West Bengal,
Thiruvallur in Tamil Nadu and Hosur in Pondicherry. Latest Model, Mitsubishi Lancer is
manufactured at its state-of-the-art manufacturing facility at Thiruvallur, Tamil Nadu.

The company launched its new model Ambassador Nova in 1990 and brought out the
Ambassador 1800. In ISZ 1993. Although many ambassadors in India have not found a
strong ambassador, people are looking for more fancy cars, its exports are steadily
increasing, mainly to the British and Japanese markets. The trucks are being exported to
Bangladesh, Egypt, New Zealand, Sri Lanka and Mauritius. Earth moving equipment is
being exported to Oman, Jordan, Iraq, Bangladesh, Mauritius and Libya. The passenger
car and utility vehicle market is being attended by a 115 strong dealer network, 50
service and parts dealers, and an additional 60 exclusive parts dealers. Hindustan Motors
has a wide spread network consisting of 4 regional offices and nation-wide area offices
worldwide. The two dealers operate in Earthmoving Equipment’s and Power Products
market from 25 locations spread across the country.

Hindustan Motors' after sales service can be classified under three divisions: Red, Green
and Blue. Red will handle the new Mitsubishi Lancer, Blue, Ambassador and Contessa
Classic, while Green caters to the rural market with Trekker and HM RTV. The range of
cars manufactured by Hindustan Motors conforms to the norms of Euro-1 norms. The
upgrade to the Ambassador 1800 ISZ with multi-point fuel injection prompted us to
follow suit.
CAR MANUFACTURERS IN INDIA

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Car manufacturing in India first started in the late 1940s. Earlier some cars made by
foreign technology were manufactured in India. But now, cars have made my Indian car
makers dominate the business. The future of car manufacturing in India is bright. In view
of this, foreign car manufacturers like Ford, Toyota, Hyundai, Suzuki, Honda and Skoda
are expanding their base in the country. Domestic car manufacturers have also
contributed to the growth of the automobile industry in India. Popular car manufacturers
in India are-

Maruti Suzuki
Established in December 1983, Maruti Suzuki India Ltd. Marked the beginning of a
revolution in the Indian car industry. This car is for an average Indian person who while
being affordable has an elegant appeal as well. Maruti Suzuki India Limited is the result
of Maruti's collaboration with Suzuki of Japan. At this time, the Indian car market had
put a hold on the volume of 30,000 to 40,000 cars by the late 1983s. This was the place
from where Maruti took office. The company became the first Indian company to
manufacture a total of one million vehicles in March 1994. It is known for its mass
production and sales of over one lakh cars. Maruti Suzuki India Limited is the largest
automobile company in India which has entered the market with the objective of offering
high quality fuel efficient and low-cost vehicles.

Honda Motors Company Limited

Honda Motors Company Limited is the result of a joint venture between Hero Group of
India and Honda Motor Company. It is one of the most successful ventures worldwide.
Japan has created the world's largest two wheeler company and Hero Honda became the
first name in India in the early 80s. This company has proved all over the world that
vehicles can be run without pollution.
The company has been recognized by numerous awards such as Auto Take of the Year –
Glamout PGM FI and "Most Trusted Company" by Overdrive Magazine, TNS Voice of
the Customer Awards 2006. In addition, it belongs to one of the most fuel-efficient and
best-selling vehicles due to its use of latest technology and superior services. Hero Honda
Company Limited has struggled a lot to try and meet the expectations of its customers. A
rich background of delivering high value products at the most economical price led the
world's largest motorcycle to join hands with the world's largest bicycle manufacturer.

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This similarity of working environment and system of Japan's Honda Motor Company
and Hero Group culminated in the establishment of Hero Honda Motors Limited.
Across the world, Hero Honda has achieved indigenization of over 95 percent. Excellent
marketing and excellent strategic promotion are the reasons behind their success and
establishment. Some of the distinguishing key features include fuel conservation, safety
ride courses and mobile workshops that helped the company reach the interiors of the
country.

Tata Motors Limited

Tata Motors Limited is the largest automobile company in India, and is one of the world's
most dynamic, reliable, and futuristic automobile manufacturers. Tata motor cars and
vehicles are preferred worldwide for their versatile technology features and utility. Spans
a wide range of passenger cars, commercial vehicles, and multi-utility vehicles with over
130 auto models. Tata Motors stands as the premier growth booster of the Indian
automobile industry. It is India's largest automobile company, largest commercial vehicle
manufacturer, second largest passenger car manufacturer in India, and fifth largest
medium and heavy commercial vehicle manufacturer in the world. Popular brands of the
company are Tata Indica, Tata Indigo, Tata Sumo and Tata Safari. Tata Nano: Recently
Tata Motor launched India's cheapest car Tata Nano for one lakh rupees.

Chevrolet Cars India

Chevrolet is one of the most trusted, luxurious, and reliable brands in the global market
of vehicles. Between 1918 and 1928, Chevrolet was imported in large quantities in India.
The company has made an entry-like king in India in the year 1928 with its National
Series AB Tour. The 171 cubic inches, 24.7hp four-cylinder engine from Chevrolet has
proved the reliability of this car. Chevrolet's first office was established in Mumbai and
its assembly plant was in Sewri. Chevrolet's parent company General Motors was the first
company to set up an assembly plant in India.

Toyota Motors Car

Established on October 6, 1997, Toyota Motors has made Indian customers aware of its
products. With complete loyalty and round-the-clock services, Toyota formed the Toyota
Kirloskar Motor Private Limited in association with the Kirloskar Group. Toyota's two
shareholders Tata Motors owns 89% of Toyota Motor Corporation, while the Kirloskar

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 Group owns 1 1%. Headquartered in Japan, Toyota Motors is a multinational
corporation, the world's largest automaker. Other offices are located in Aichi, Nagoya
and Tokyo. In 1982, Toyota Motor Company and Toyota Motor Sales merged into a
company, Toyota Motor Corporation. After two years, Toyota signed a joint venture with
GM called NUMMI, New United Motor Manufacturing Inc. operating an automobile
manufacturing plant in Fremont, California.

Mahindra Cars
Mahindra & Mahindra is a part of the Mahindra Group, which was established in 1945 to
manufacture general-purpose utility vehicles, now international in the Indian
subcontinent as well as Africa, Europe, Middle East, America Provides service to
markets. Latin America, China, and Malaysia. It later turned into manufacturing tractors
and light commercial vehicles, and is today the tenth largest private sector company in
India.

Marketing plays diversified roles in businesses as follows-

• Marketing helps in continuous up gradation and improvement of products for better
customer satisfaction.
• Marketing concepts give rise to better and more effective packaging of consumer
products.
• Marketing gives rise to competition.

Marketing Strategy
Presently marketing can be seen as the process of developing and implementing a
strategy to plan and coordinate ways of identifying, anticipating, and satisfying
consumer demands, in such a way as to make profits. A strategy is a long term plan to
achieve certain objectives. A marketing strategy is therefore a marketing plan designed
to achieve marketing objectives.

Components of Marketing Strategy

The key elements of marketing strategy are targeted market strategy and marketing mix
strategy. Target market strategy is applied over the long term including evaluating
various market segments and deciding how many and which market segments to target.
The marketing mix strategy is applicable for short periods. The marketing mix consists

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 of a set of marketing tools, which the company uses to achieve its marketing objectives
in the target market. These tools are classified into four broad groups which we have
called the four Ps of marketing i.e. Product Strategy, Promotion Strategy, Price Strategy
and Distribution Strategy. Re-promotion means five components of marketing
communication strategy such as sales promotion strategy, advertising strategy, personal
selling / sales force strategy, public relations strategy and direct marketing strategy.

The success of marketing strategies depends largely on producers understanding their

markets and activities or practices involved in marketing.

Market segmentation
There are a variety of ways of segmenting the markets for the cars. There are seven
different market segments have been identified, as follows:
 Just getting around
 Family needs

 I’ve made it
 Environmentally aware
 Second family car
 Quality matters
 Off roaders

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JUST GETTING ARUOND
Consumers in this market segment view cars as having a functional benefit only.
They do not perceive cars to be status symbols and do not see the value in paying extra
for quality.
Inclusions, a bigger motor, or other surplus options, in their mind, a car simply is a
transportation device they get you from point A to point B.
These consumers are highly interested in lower priced cars that represent good value for
money.
Usually, they attracted smaller vehicles without many additional options. They generally
quite price Sensitive and attracted to special deals. They are more likely to switch
between brands, as opposed to the other consumer segments.

FAMILY NEEDS
This market segments consists of an established family with children still in the
household. Therefore, they need a larger, more comfortable car to move their family
They attracted to products features that benefits their family needs –such as, larger
seating, drink holders, entertainment units. Safety is also another important factor, as is
reliability, and a brand of car that is acceptable to the whole family.

I’VE MADE IT
As suggested by the segments name, this group of consumers is primarily interested in
the social status benefits of car brand. It is important to them that they communicate
their career or business success (or role in an organization) by purchasing a more
expensive car.
This group of consumers is attracted to brands of car that are considered high status and
are more interested in brands that have social recognition benefits, rather than features of
the car

ENVIRONMENTALLY AWARE
An emerging market segment consists of consumers who take environmental factors into
account in their purchase decision of a vehicle. They are concerned with the impact that
their car has on the natural environment.

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This is the market that is more attracted to hybrids or electric cars, or smaller cars with a
lower level of fuel consumption. It is important that the brand of car has a reputation for
being environmentally concerned.

SECOND FAMILY CAR

The second family car segment is a subset of the family needs market segment. This is
for families with both parents working, or with teenagers who are now driving.
They have similar needs to the other family needs to the other family segment, but
because this is a second car primarily for shorter travel, they are less interested in the
comfort features. They are typically seeking a lower-priced alternatives for a larger
vehicle, without the added extras of options like entertainment units.

QUALITY MATTERS
This group of consumers will typically spend a little bit more on their motor vehicle
purchase. They advanced cars that have the latest features, as well as higher quality
finishes throughout.
They differ from the “I’ve made it” market segment because they are interested in the
status symbol of the brand, and are more focused on the product quality and features.

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Maruti Suzuki India Limited (MSIL), Previously Known as Maruti Udyog
Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki
Alto car which at the time was the only modern car available in India. Its'
only competitors- the Hindustan Ambassador and Premier Padmini both
were around 25 years out of date at that point. Through 2004, Maruti has
produced over 5 Million vehicles. Marutis are sold in India and various other
countries, depending upon export orders. Cars like Marutis (but not
manufactured by Maruti Udyog) are sold by Suzuki and manufactured in
Pakistan and other South Asian countries.
Maruti Suzuki India Limited (MSIL)

Formerly Maruti Udyog Limited

Traded as BSE: 532500
NSE: MARUTI
BSE SENSEX Constituent
Industry Automotive
Founded 1981; 37 years ago
Headquarters New Delhi, India
Area served India
Key people M. Md. Masthan (Adoni)(Chairman)
Kenichi Ayukawa (Managing Director &
CEO)
Products Automobiles
Production output 1,568,603 units (2019)
Revenue ₹796,060 million(US$11 billion) (2019)
Operating income ₹101,272 million(US$1.4 billion) (2019)
Net income ₹77,326 million(US$1.1 billion) (2019)

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 Total assets ₹519,605 million(US$7.2 billion) (2019)
Total equity ₹370,905 million(US$5.2 billion) (2019)
Number of employees 40000 (2019)
Parent Suzuki Motor Corporation (56.21%)
Public (43.79%)
Website www.marutisuzuki.com

Maruti Suzuki is one of India's leading automobile manufacturers and the

market leader in the car segment, both in terms of volume of vehicles sold
and revenue earned. Until recently, 74% of the company was owned by the
Indian government, and 26% by Suzuki of Japan.
The Indian government held an initial public offering of 25% of the
company in June 2003. As of May 10, 2007, Govt. of India sold its complete
share to Indian financial institutions. With this, Govt. of India no longer has
stake in Maruti Udyog. Suzuki Motor Corporation, the parent company, is a
global leader in mini and compact cars for three decades. Suzuki’s technical
superiority lies in its ability to pack power and performance into a compact,
lightweight engine that is clean and fuel efficient. Nearly 75,000 people are

employed directly by Maruti and its partners. The company works

for customer satisfaction. For its sincere efforts it has been rated (by
customers) first in customer satisfaction among all car makers in India for
nine years in a row in annual survey by J D Power Asia Pacific. Maruti
Suzuki was born as a government company, with Suzuki as a minor partner
to make a people's car for middle class India. Over the years, the product
range has widened, ownership has changed hands and the customer has
evolved, what remains unchanged, then and now, is Maruti mission to
motorize India.

16
 Marketing mix of Maruti Suzuki
Maruti Suzuki is a subsidiary of a Japanese manufacturing company Suzuki.
This Public Ltd Company, also known as Maruti, deals in the manufacturing
of Automobiles. It was founded in the year 1981 and has its headquarters in
New Delhi. In the year 2012, February the ten millionth automobile of the
company was sold in India. Its chief competitor are as follows-
 Tata Motors
 Ford Motors
 Hyundai

GENERAL DISCRIPTION OF MODELS

MARUTI 800:
Maruti 800 is a city car manufactured by Maruti Udyog in India .It used to be the
largest selling car in India until the Maruti Alto recently took that title. It is also
exported to a number of countries in southeastern Asia including Bangladesh and Sri
Lanka, and to some South American markets (as Chile, sold as Suzuki Maruti), and was
available in selected European markets between 1988 and 1992, sold as the Suzuki
Maruti. In Morocco it is currently sold as Suzuki Maruti (as of March 2008). The car
comes in different versions including one with air conditioning and one without. It was
launched in December 1984 with almost 100% imported components.

MARUTI
OMNI:
The Maruti Omni is a microvan manufactured
by Indian automaker Maruti Udyog Limited.
The first version of Maruti Omni had the same

17
 796 cc engine as the Maruti 800 city car. This was the second vehicle to be launched by
Maruti, one year after the 800, in 1984. Later version of the Omni includes the
 Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle
 Omni XL - 1999, same engine, modified with a higher roof.
 Omni Cargo LPG - 2004, created to answer the growing popularity of this car being
used as an inter-city cargo vehicle.
Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit, authorized
by the Indian RTOs (Regional Transport Offices). This makes it the most economical
4-wheeler in India, as far as the driving costs are concerned.

MARUTI GYPSY
The Maruti Gypsy is a four wheel drive SUV based
on the Suzuki SJ long wheel base. Produced in India,
it is also a common sight in Chile and Kenya. Within
Europe, it is most often found in Malta and Hungary.
In contrast to the Suzuki, the Maruti is available with
4 seats and a sizeable trunk. The Maruti Gypsy is
available as a "soft top", "hard top " and as an
"ambulance car". In India, it is widely used by the
police and defense forces. In civilian use, the Gypsy is a popular choice as a low-cost
SUV and is a common sight at rally events.

MARUTI WAGON-R
The Maruti Wagon-R is a made for India
version of Suzuki Wagon R. The Wagon-R
was born out of Japanese kei-jido-sha
restrictions which dictated a limited length
and engine size. This boxy, tall-boy design
has now completed five years of presence on Indian roads. Now the car has found a
market for itself, especially among young Indian urban professionals who don't mind its
boxy slab-sided looks, but value its Maruti lineage. The car is currently among India's
top five best-selling cars.

18
MARUTI ALTO
The Maruti Alto is a city car manufactured by Maruti Udyog in India. It is the best-
selling car in India. It is India's
largest selling car and has
recently crossed the 1 million
production figure. It is exported
to a number of countries
including Bangladesh and Sri
Lanka, and to Chile. Alto has crossed the 150,000 export target. The popularity of the
Alto has increased over the past few years, mainly due to the reduction in prices. This
reduction in prices has mainly come in due to the reduction in excise duty over time. It
has now become the first choice of young car buyers intending to upgrade from a 2
wheeler. Some of its appeal is from stylish looks, attractive features, and impressive
fuel economy at very affordable prices compared to the other cars in the Indian market.

MARUTI VERSA
The Maruti Versa is a micro van produced by Maruti Udyog Limited and sold in India
since October 2001. The
Versa is a clone of the now
discontinued Suzuki Carry.
It is the second van
released by Maruti Udyog
since the Maruti Omni was
released in 1984. There are
two basic versions of this
car in production; the two
8-seater DX/DX2 versions, and the 5-seater STD version. The DX2 version of the
Versa is equipped with twin air conditioners for front and rear.

19
MARUTI SUZUKI SWIFT
The MARUTI Suzuki Swift is name plate marketed by Suzuki carried by vehicles of
three distinct derivations:
Generations I, II, III- a super
mini that began as an export
nameplate of the Japanese
domestic market of Suzuki.
Generation IV- the current
JDM, Europe and Oceana
generation, a significant
departure from the previous models, marketed solely under the nameplate "Swift".
(this article)
Canadian Swift+: the current Canada-only generation marketed under the Suzuki
swift. Currently this variant is hot seller in India in the mini car segment.

MARUTI SUZUKI SX4

To strengthen its position in the of
Sedan cars market, Maruti Udyog Ltd.
has launched its premium model bearing
name SX4. After Maruti Suzuki Swift,
SX4 is the second international model
being launched in India. Suzuki SX4, is
an A3 segment sedan car, with a perfect combination of style, performance, safety, and
comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from
latest and efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power.
Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough
competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and
Indigo XL.

20
 MARUTI SUZUKI DZIRE
Maruti Swift Dzire is the new
entry level sedan from Indian
automaker Maruti Suzuki.
Launched on March 26 2008,
Maruti DZiRE is based on the
popular Maruti Swift platform. The
DZire replaces Maruti Suzuki’s
popular entry level sedan, Maruti Suzuki Esteem, production of which was
discontinued in late 2007. Maruti Suzuki has introduced DZire only in the Indian
market. The car is pitted against the other entry level sedans in the Indian market, such
as the Mahindra Renault Logan and the Tata Indigo.

MARUTI SUZUKI ESTEEM

Sophisticated big structured Maruti Suzuki esteem is one of the old cars of the Maruti
Udyog group. To run this huge car
its engine is made of lightweight
all-aluminum. This contemporary
engine has capacity of 65 bhp at
6000 rpm. According to *Mileage
(Auto India, Nov 2005), Esteem
holds the topmost position on
mileage among the other category
of cars including the small cars. The Esteem was introduced in the global market in
1995 as Suzuki's first attempt in the compact segment, at the time dominated by
European cars such as the Volkswagen Bora/Jetta and Opel Astra, and Japanese models
such as the Nissan Sunny/Sentra and Toyota Corolla. As a North American

21
replacement for the Suzuki Swift sedan (the 3-door hatchback remained after it was
redesigned in 1995), it was built on a slightly stretched Suzuki Cultus platform for
improved cabin room, but otherwise sharing most of internal components with the
smaller model — and marketed as a distinct model.

MARUTI SUZUKI BALENO

The Baleno has the looks and feel of a winner. This was Maruti Udyog's first D-
segment car launched in India to
compete with the Mitsubishi Lancer
and the Honda City. This is also
Suzuki's biggest passenger car and in
Japan and other markets. The Baleno is
called the Cultus in Japan. Suzuki
restyled the Baleno in 1999. The car
was given a new front end, with a
rounder grille and new headlights, and
the engine lineup was expanded.

MARUTI SUZUKI GRAND VITARA

The Suzuki Grand Vitara is a compact SUV, namely a long-wheelbase version of the
Vitara, produced by the Japanese automaker Suzuki since 1999. It was face lifted in
2002 and 2004, and redesigned
in 2006. A rebadged version
was sold in North America by
General Motors as the
Chevrolet Tracker. The
Tracker is sold in Latin

22
America, but Mexico, as Chevrolet Grand Vitara. In Mexico, Grand Vitara and Tracker
are different vehicles, sold by Suzuki and Chevrolet respectively. The 2006 model has
had a structural redesign with a new ladder-boxed chassis integrated into a unibody
construction. In India, it is sold as a Maruti.

MARUTI SUZUKI ZEN-ESTILO

Estilo has got Wagon R's engine and
chassis and Suzuki MR Wagon's shape.
Whatever remains is taken from Zen,
well does anything remain actually?
This is the mixture of Zen and Wagon-
R. 'Zen Estilo'. In essence its stylish
Wagon R, Japan's MR Wagon,
combination of the two or anything but
Zen. It seems Maruti wants to exploit Zen brand-image hence named this car after Zen.
With this model MSL has given its B segment a new variant by which it may compete
with the models of other company.

CAR MARKET CLASSIFICATION

It is necessary to understand the Indian car market classification and the segments in
which MUL operates.
There are two principal systems of classification in the Indian passenger car industry:
A. Price Based Classification
Price based classification is the widely accepted classification basis in the Indian
passenger car industry.
The different price segments used by Maruti were as follows:
1. Segment A – cars priced lower than Rs. 300,000

2. Segment B – cars priced between Rs. 300,000 and Rs. 500,000

3. Segment C – cars priced between Rs. 500,000 and Rs. 1,000,000

23
4. Segment D – cars priced between Rs. 1,000,000 and Rs. 2,500,000

MARKETING MIX OF MARUTI SUZUKI

Maruti Suzuki's Marketing Mix analyzes the brand / company covering 4P (Product,
Price, Place, Promotions) and explains the Maruti Suzuki marketing strategy. By 2020,
there are several marketing strategies such as product / service innovation, marketing
investment, customer experience, etc. that have helped the brand grow.
Marketing strategy helps companies achieve business goals and objectives, and the
marketing mix (4Ps) is a widely used framework for defining strategies. This article
elaborates the product, pricing, advertising and distribution strategies used by Maruti
Suzuki.
Let us start the Maruti Suzuki Marketing Mix and Strategy:

Maruti Suzuki Product Strategy:

The product strategy and mix in Maruti Suzuki marketing strategy can be explained as
follows:
Maruti Suzuki India has a diverse product portfolio and is present in the categories of
cars such as hatchback, supermini, SUV, sedan and van. The entire product portfolio of
automobiles is a part of the products in Maruti Suzuki's marketing mix. Its products are
Maruti Alto, Celerio, Wagon R, Maruti Swift, Baleno, Maruti Gypsy, Eco, Maruti Ciaz,
Ertiga, Dzire, Ace Cross, Ignis and Maruti Omni. Its cars are segment leaders in most
categories and are competitively priced.
Maruti Suzuki produces 1.5 million cars every year with 15 car models and a total of
150 variants. In January 2016, among all passenger car sales, Maruti Suzuki India had a
total market share of 47%.
Maruti also provides services such as Maruti Finance, Maruti Insurance, Maruti True
Value (Used Car), Maruti Accessories and Maruti Driving School to promote its
bottom-line growth.

24
Maruti Suzuki Product Mix:

Maruti Suzuki S-Presso

Maruti Suzuki Vitara Brezza

25
Maruti Suzuki Ertiga

26
Maruti Suzuki Swift

Maruti Suzuki Dzire

27
Maruti Suzuki Wagon R

Maruti Suzuki Celerio

28
Maruti Suzuki eeco

Maruti Suzuki
Alto K10

Maruti Suzuki
Celerio X

29
NEXA PRODUCT MIX:

CIAZ

IGNIS

30
 Formerly Tata Engineering and Locomotive Company Ltd. (TELCO)

Industry Automotive
Segment E –
Founded 1945; 77 years ago
cars priced
Founder Jehangir Ratanji Dadabhoy Tata
above Rs.
Headquarters Mumbai, Maharashtra, India
2,500,000
Area served Worldwide

Key people Natarajan Chandrasekaran (Chairman)

Martin Uhlarik (CDO)

Products Automobiles

Luxury vehicles

Commercial vehicles

Automotive parts

Pickup trucks

SUVs

Production 1.1 Million (approx) (2021)

output

Services Automotive finance

Vehicle leasing

Vehicle service

Revenue ₹281,507 crore (US$35 billion) (2022)

Operating ₹−7,003 crore (US$−880 million) (2022)

income

Net income ₹−11,234 crore (US$−1.4 billion) (2022)

Total assets ₹330,619 crore (US$41 billion) (2022)

Total equity ₹44,554 crore (US$5.6 billion) (2022)

Number of 78,906 (2021)

employees
31
Parent Tata Group
TATA MOTORS

Tata Motors Limited is an Indian multinational automotive manufacturing company,

headquartered in Mumbai, India, which is part of the Tata Group. The company

produces passenger cars, trucks, vans, coaches, buses.

Formerly known as Tata Engineering and Locomotive Company (TELCO), the

company was founded in 1945 as a manufacturer of locomotives. The company

manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-

Benz AG, which ended in 1969. Tata Motors entered the passenger vehicle market in

1988 with the launch of the Tata Mobile followed by the Tata Sierra in 1991,

becoming the first Indian manufacturer to achieve the capability of developing a

competitive indigenous automobile. In 1998, Tata launched the first fully indigenous

Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the world's

most affordable car. Tata Motors acquired the South Korean truck manufacturer

Daewoo Commercial Vehicles Company in 2004. Tata Motors has been the parent

company of Jaguar Land Rover since the company established it for the acquisition of

Jaguar Cars and Land Rover from Ford in 2008.

Tata Motors' principal subsidiaries include British premium car maker Jaguar Land

Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial

vehicle manufacturer Tata Daewoo. Tata Motors has a construction-equipment

manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and

a joint venture with Stellantis which manufactures automotive components and Fiat

Chrysler and Tata branded vehicles. On 12 October 2021, private equity firm TPG

invested $1 billion in Tata Motors' electric vehicle subsidiary.

Tata Motors has auto manufacturing and vehicle plants in Jamshedpur, Pantnagar,

Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa,

32
the United Kingdom, and Thailand. It has research and development centers in Pune,

Jamshedpur, Lucknow, Dharwad, India and South Korea, the United Kingdom, and

Spain. Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is a

constituent of the BSE SENSEX index, the National Stock Exchange of India, and the

New York Stock Exchange. The company is ranked 265th on the Fortune Global 500

list of the world's biggest corporations as of 2019.

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the

company Tata Group. Tata Motors increased its UV market share to over 8% in

FY2019.

LUCKNOW PLANT

Tata Motors Lucknow (TML-Lucknow) is an important production facility of Tata

Motors Limited & was established in 1992 to meet the growing demand for

Commercial Vehicles in the Indian market.

Plant is strongly backed up by an Engineering Research Centre (ERC) & Services set-

up to support with latest technology & cater to the complexities of automobile

manufacturing. Fully Built Vehicle business (FBV). Which is one of the fast growing

areas of business is also head quartered here.

33
HISTORY

HISTORY OF TATA MOTORS/ PRODUCTS OFFERED:

Manufacturing of locomotives and other Steam Road Roller – 1948 engineering

products - 1945

34
Commercial Vehicle – 1954 1210 Series of vehicles - 1964

Telco – 1969 Tata 1210 Semi Forward Model -

1975

Heavy Commercial Vehicles – 1983 Tata LCV 407 - 1986

35
Multi Utility Tata Mobile – 1989 Indigenous Passenger Vehicle Tata

Sierra

Tata Estate – 1992 Tata Sumo - 1992

Telco – 1995 Tata Safari - 1998

36
Tata Indica – 1998 Tata Indigo - 2002

Tata Novus – 2004 Tata Indigo Marina - 2004

Globus – 2005 Tata ACE Mini Truck - 2005

37
Tata SUT Sports Utility Truck – 2007 Tata Magic - 2007

SWOT ANALYSIS OF TATA MOTORS

Tata Motors is one of the stronger players in the Indian market as well as globally with

the acquisition of Jaguar. Here is the SWOT analysis of Tata motors.

STRENGTHS IN THE SWOT ANALYSIS OF TATA MOTORS

The internationalization strategy so far has been to keep local managers in new

acquisitions, and to only transplant a couple of senior managers from India into the new

market. The benefit is that Tata has been able to exchange expertise. For example after

the Daewoo acquisition the Indian company leaned work discipline and how to get the

final product ‘right first time.’

38
The company has a strategy in place for the next stage of its expansion. Not only is it

focusing upon new products and acquisitions, but it also has a programme of intensive

management development in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat since 2006.

This has enhanced the product portfolio for Tata and Fiat in terms of production and

knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007,

and the companies have an agreement to build a pick-up targeted at Central and South

America.

WEAKNESSES IN THE SWOT ANALYSIS OF TATA MOTORS

The company’s passenger car products are based upon 3rd and 4th generation

platforms, which put Tata Motors Limited at a disadvantage with competing car

manufacturers.

Despite buying the Jaguar and Land Rover brands; Tata has not got a foothold in the

luxury car segment in its domestic, Indian market. Is the brand associated with

commercial vehicles and low-cost passenger cars to the extent that it has isolated itself

from lucrative segments in a more aspiring India?

One weakness which is often not recognized is that in English the word ‘tat’ means

rubbish. Would the brand sensitive British consumer ever buy into such a brand?

Maybe not, but they would buy into Fiat, Jaguar, and Land Rover

OPPORTUNITIES IN THE SWOT ANALYSIS OF TATA MOTORS

39
 In the summer of 2008 Tata Motor’s announced that it had successfully purchased the

Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the

World’s luxury car brand have been added to its portfolio of brands, and will

undoubtedly off the company the chance to market vehicles in the luxury segments.

 Tata Motors Limited acquired Daewoo Motor’s Commercial vehicle business in 2004

for around USD $16 million.

 Nano is the cheapest car in the World – retailing at little more than a motorbike. Whilst

the World is getting ready for greener alternatives to gas-guzzlers, is Nano the answer

in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will

cost up to 85 times more than a standard Nano!

 The new global track platform is about to be launched from its Korean (previously

Daewoo) plant. Again, at a time when the World is looking for environmentally

friendly transport alternatives, is now the right time to move into this segment? The

answer to this question (and the one above) is that new and emerging industrial nations

such as India, South Korea and China will have a thirst for low-cost passenger and

commercial vehicles. These are the opportunities. However, the company has put in

40
 place a very proactive Corporate Social Responsibility (CSR) committee to address

potential strategies that will make is operations more sustainable.

 The range of Super Milo fuel efficient buses are powered by super-efficient, eco-

friendly engines. The bus has optional organic clutch with booster assist and better air

intakes that will reduce fuel consumption by up to 10%.

THREATS IN THE SWOT ANALYSIS OF TATA MOTORS

 Other competing car manufacturers have been in the passenger car business for 40, 50

or more years. Therefore Tata Motors Limited has to catch up in terms of quality and

lean production.

 Sustainability and environmentalism could mean extra costs for this low-cost producer.

This could impact its underpinning competitive advantage. Obviously, as Tata

globalizes and buys into other brands this problem could be alleviated.

 Since the company has focused upon the commercial and small vehicle segments, it has

left itself open to competition from overseas companies for the emerging Indian luxury

segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-

based plant which will build 5000 new Mercedes-Benz per annum. Other players

developing luxury cars targeted at the Indian market include Ford, Honda and Toyota.

In fact the entire Indian market has become a target for other global competitors

including Maruti Udyog, General Motors, Ford and others.

 Rising prices in the global economy could pose a threat to Tata Motors Limited on a

couple of fronts. The price of steel and aluminum is increasing putting pressure on the

costs of production.

41
Hyundai Motor India Ltd

42
 Headquarters in Gurugram, India

Type Subsidiary

Industry Automotive

Founded 6 May 1996; 27

years ago

Headquarters Gurugram, Harya

na, India

Key people Unsoo Kim (MD

& CEO)
Tarun Garg
(COO)

Products Automobiles

Production output 710,012 units

(2018)

Revenue ₹47,042.79
crore (US$5.9 bil
lion) (2022)

Net income ₹2,861.77

crore (US$360 m
illion) (2022)

43
 Parent Hyundai
Website www.hyundai.co.

in

Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor Company

headquartered in South Korea. It is the second largest automobile manufacturer with

16.2% market share as of February 2019 and US$5.5 billion turn-over in India.

Hyundai Motor India Limited was formed on 6 May 1996 by the Hyundai Motor

Company of South Korea. When Hyundai Motor Company entered the Indian

Automobile Market in 1996 the Hyundai brand was almost unknown throughout India.

During the entry of Hyundai in 1996, there were only five major automobile

manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo

had entered the Indian automobile market with Cielo just three years back while Ford,

Opel and Honda had entered less than a year back.

For more than a decade till Hyundai arrived, Maruti Suzuki had a near monopoly over

the passenger cars segment because Tata Motors and Mahindra & Mahindra were solely

utility and commercial vehicle manufacturers, while Hindustan and Premier both built

outdated and uncompetitive products. The company is looking its future business growth

in Mobility and has invested $14 million in Delhi based car rental platform Revv. With

this strategic investment in Revv, Hyundai Motor will work to co-develop the company's

new growth engine by developing innovative mobility services that combine

technologies such as autonomous driving and artificial intelligence with the sharing

economy to transform people's lives.

HYUNDAI MOTOR INDIA FOUNDATION

44
MIF was formed in the year 2006 with the purpose of 'giving back' to society and to

initiate Corporate Social Responsibility (CSR) activities in the areas of Community

Development, Health Care, Educational and Vocational Training, Environment, Road

Safety, Art, Science, Technology, etc.

SAFE MOVE

Hyundai Motor India Ltd, the country's leading premium car manufacturer and the

largest passenger car exporter launched its CSR initiative 'Safe Move-Traffic Safety

Campaign' in association with Ministry of Road Transport and Highways.

Safe Move is one of the key pillars of Hyundai's global CSR campaign on Traffic

Safety Campaign. Under the aegis of "Safe Move", HMIL in association with the

Ministry of Road Transport and Highways will promote the best practices of road

and traffic safety habits among children. Mr Shah Rukh Khan to participate in

Hyundai’s CSR initiatives as Hyundai’s Corporate Brand Ambassador. Mr Khan has

been associated with Hyundai since 1998 in India and has been instrumental in

strengthening Hyundai brand in India.

The Safe Move official Traffic Safety Campaign educates the children on the

Traffic Safety. Along with the TV airing, special School Contact and RWA

(Residential Welfare Association) programs have been designed to reach out and

spread the Traffic Safety message across the multiple cities in India. A ‘Kids

Hyundai’ website (www.kids.hyundai.co.in), a specially designed website for

children on Traffic Safety is developed. To enjoy all the convenience and joys of

driving, we need to ensure a safe environment for drivers and pedestrians alike.

MD & CEO

45
Hyundai India Motor Ltd.

MARKET ANALYSIS IN THE MARKETING STRATEGY OF

HYUNDAI MOTORS –

With a global market share of only 6% company is redesigning its marketing strategies to

target the upper strata or upper-income group customers by introducing its offering in

premium segment which is the fastest growing segment in the emerging economies. The

automotive market is facing a stagnant growth rate in the economy segment so focusing

more on customer serviceability, brand awareness, tapping/ penetrating the growing

markets will help the company in sustaining itself in the highly competitive market.

CUSTOMER ANALYSIS IN THE MARKETING STRATEGY OF

HYUNDAI MOTORS –

Customers of Hyundai are the middle-income group who want to purchase a car for family

purpose and is looking for a value for money offering.

MARKETING MIX OF HYUNDAI MOTORS

Hyundai Motor Company is a multinational corporation that has its headquarters based in

Seoul in South Korea and is associated with automotive industry. It was founded in year

1967 by Chung Ju-Yung along with its subsidiary Kia Motors and both together form the

46
Hyundai Motor Group. Hyundai is a public company and has its origins in South Korea. In

year 2008, Hyundai Motor, without its subsidiary Kia Motors, was declared eighth-largest

automaker and in year 2012, Hyundai Motor Group, along with its subsidiary Kia Motors,

was declared fifth-largest automaker in terms of annual sales of its vehicles in global

market. Total sales of vehicles of Hyundai in year 2012 were estimated at 7.12 million. In

terms of popularity it is one of the most common and popular brands

in automobile industry. In year 2015, company introduced a new brand of luxury cars

titled Genesis Motors. Hyundai faces stiff competition in global market and some of its

main competitors are as follows-

 Ford

 Volkswagen

 Toyota

 Skoda

 Tata Motors

 Maruti Udyog

 Mitsubishi

 Fiat

 Chevrolet

 Nissan Motors

 Honda

PRODUCT IN THE MARKETING MIX OF HYUNDAI MOTORS

First model of Hyundai Motor Group was Cortina in year 1968 and it was co-produced

with Ford Motor Company. In year 1975, company launched its first solo-effort car Pony

and started its export to different countries like Ecuador and later to Canada. In 1986,

47
 Hyundai launched its vehicles in United States and its car Excel was declared one of the

best ten products. Currently Hyundai’s product folio includes engines, commercial

vehicles and automobiles and some of the most popular ones are as follows-

 Sedans, sports car and hatchbacks like Aslan, Accent, Genesis, Eon, Elantra, i20, I10,

Marcia, Santa Fe, Xcent and Hyundai Sonata

 Vans and SUVs include Tucson, Terracan, Santa Fe Sport and Porter 2

 Commercial vehicles include Hyundai 1620 urban bus, Aero City, Chorus, e-Mighty,

HD160, Mega Truck, Mighty II, Super Truck and Universe

 Concept car include Vision G, Clix, Excel Electric-vehicle, Sonata Electric-vehicle, TB

Concept Car and i-oniq

Note that within the above product lines, there are various product depths and product length as

well. So an I20 will also have an I20 asta, I20 Magna and other variants. The low value, medium

value and high value variants are present in most cars of Hyundai.

PLACE IN THE MARKETING MIX OF HYUNDAI MOTORS

Hyundai is fourth-largest manufacturer of vehicles in global market in 2016 and has largest

manufacturing facility for integrated automobile in world. It is located in Ulsan, in South Korea

and has 1.6 million units of production capacity on annual basis. Hyundai believes in its own

qualitative products and services and hence has opened various manufacturing plants in different

regions. Its European plant is located in Nosovice and has a capacity of manufacturing 300,000

vehicles annually. Company has also opened R&D facilities in places like Hyderabad which

employs nearly 450 engineers to provide engineering and technical support in development of

vehicles.

Vehicles belonging to Hyundai Motor Company are sold in nearly one hundred and ninety-three

countries in and across globe. It has a proficient distribution channel that comprises of dealers,

48
salespersons, retailers and all these are possible because of nearly 5,000 showrooms and

dealerships. Company employs nearly 75,000 employees, who are competent enough to manage

good revenues. Hyundai must penetrate all markets and hence has undertaken numerous steps to

reach rural parts of every country with several dealership outlets.

Important in the place element of Hyundai is also the fact that their dealerships have beautiful

outlets. Most of the dealerships have multiple sales personnel to attend to the numerous

customers walking in. Once the customer walks in, a sales person presents all the options of cars

with them and understands the customers demography and requirement. Accordingly, the deal is

finalized. The sales executives are well trained with ample competitive knowledge to close the

customer who has walked in. The company takes care of the training. The same outlet also acts

as service center so that the customer feels confident about the service part as well.

PRICE IN THE MARKETING MIX OF HYUNDAI MOTORS

Hyundai is a global brand that has been tapping the emerging markets successfully.

Its pricing policies have helped it to maintain its position as one of the best automakers in

industry. In order to cater to different sections of society it has manufactured numerous vehicles

and kept varied pricing policies for them. Some of its cars belong to competitive

pricing category, whereas others like luxury car Genesis belongs to premium pricing category.

To make its penetration policy successful it has managed to keep its prices affordable for

consumers. Hyundai has been known for supplying value-based products and its prices have

been set at a competitive rate when compared to competitors. It can also be said to be value

based pricing, because as the value provided in each model changes, the price of the car rises. It

gives several trade benefits as well to its dealers to promote the products from time to time.

49
PROMOTIONS IN THE MARKETING MIX OF HYUNDAI MOTORS

Hyundai recognizes the potential of promotional activities and hence has always gone for

different and varied marketing strategies to create positive brand awareness. In year 2012,

company started a brand campaign globally that emphasized on its Modern Premium thinking

process.

Hyundai wanted each and every customer to relate his/her vehicle with moments of happiness

and good memories. Company has been associated with different sports to create its brand

visibility. It has entered motorsport in year 1998 and 1999, competing in world Rally

Championships. It has various sponsorship deals in sports like FIFA, A-League, Korea Football

Association, Brisbane Lions and Hyundai Hockey Helpers.

In year 2015 Santa Fe became Pope-mobile officially for Pope Francis. Hyundai has made

various ads and commercials that are telecast on television, radio, print media like magazines,

newspapers, hoardings. It has also started utilizing online facilities for promoting its products as

it realizes it is true potential. Superstar Shahrukh Khan has been associated with Hyundai as its

brand ambassador.

SWOT ANALYSIS OF HYUNDAI MOTORS

STRENGTHS IN THE SWOT ANALYSIS OF HYUNDAI

 Hyundai India has such a brand equity that it is almost assumed to be an Indian brand,

with lot of good accolades for being India’s second most selling brand next to MUL in

market share

 Hyundai Motor India limited is the largest car exporter from Asian Market which showed

a 10% growth compared to last FY

50
 The domestic sales is increasing at an average rate of 19.1%

 HMIL is known for its quality products which has better performance and it has constantly

been ahead in the race with Maruti Udyog limited in many parameters

 The product length includes around 8 cars, starting from new Eon in small car segment to

SUV segment Santa Fe

 Among the automobile players only HMIL is known for its CSR activities

 Hyundai products never fail to win laurels in each segment from various automobile

ratings ever since its operations in India

 Hyundai , has the largest network of showrooms and service station next to Maruti in

India

 An article in Economic times quoted that “Hyundai Eon launched, treads on Alto

territory” indicated that Eon will act as a threat to reduction in Alto’s market share

WEAKNESSES IN THE SWOT ANALYSIS OF HYUNDAI

 HMIL took a long time to gain the market share as it is not the first mover in India

 In terms of most reliable and trusted brand; Maruti is more strong in Indian subcontinent

 Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not

have PAN India presence

 In SUV segment both Tucson and its next model Santa Fe did not make a major impact

 Increase in commodity prices such as steel, aluminum and ancillary parts has affected

margins

 Since HMIL concentrates on both domestic and International sales there are higher risks

of exchange rate fluctuations

51
 As Hyundai majorly concentrates on quality, most of its product are in premium category

in each segment. Hyundai is still struggling to make a better impact in small car segment

in terms of cost efficiency like other manufactures

 Hyundai does not have any product match to compete in corporate orders like Tata Indica

V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most

preferred in both cab segment and government booking for bulk orders

OPPORTUNITIES IN THE SWOT ANALYSIS OF HYUNDAI

 SIAM – Society of Indian automobile Manufacturers, have stated that there is steady

increase in Car sales both Domestic and Indian contributing a valuable share in India’s

GDP

 The export markets growth rate is 22.30% compared to last fiscal year

 The saving consumption pattern of India is an added advantage for any segment doing

business in India. This was one of the major reason for Indian market to survive amidst

global recession

 There is more scope of HMIL to enter small car segment as it has dedicated R&D plant in

Hyderabad, India. Hyundai is one of the very few companies that has widest R&D

network across the world located in Korea, Europe, India, US, Japan

 Hyundai has very good opportunity in entering into commercial vehicles and Recreational

vehicles as they are already doing well outside India. Currently HMIL has its focus only

on Passenger car segment

THREATS IN THE SWOT ANALYSIS OF HYUNDAI

52
 Though Hyundai claims itself to have no direct competitors other than MUL, there are

Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to

expand its product category

 Foreign Direct Investments flowing in Indian automobile space are not good signs for

already existing Giants like MUL and Hyundai.

 Almost all major automobile players have started invading India to open their market and

their manufacturing plant in India. “Chennai” is referred to as the Detroit of Asia!

Objective of the study

To study the effectiveness of these marketing strategies by analyzing the impact on consumer

in terms of their brand choice, satisfaction, and loyalty intention.

53
 LITERATURE REVIEW
Automobile Industry
Abhijeet Singh and Brijesh Kumar (2011) Hero Honda Motors Ltd, is running a
program called good life Passport to Relationship Reward, with an objective to create an
innovative environment for interaction between Hero Honda and its customers.
Members of this program are given a magnetic card in which all information is stored and
this card is swiped when using any service at a showroom or workshop and it works like
a loyalty benefit card.

Abhijeet Singh (2011) Tata Motors uses a customer relationship management and dealer
management system (CRM-DMS) which integrates one of the largest applications in the
automobile industry, linking more than 1200 dealers across India. CRM DOS has helped
Tata Motors to improve its inventory management, tax calculation and pricing.
This system has also proved to be beneficial to dealers because it has reduced their
working capital cost.

Arvind Saxena (2010) Director and Board member (marketing and sales), Hyundai
Motor India (HMIL) “No company in automobile sector can fight competition on price.
Companies need to have the right product, distribution, CRM and after sales service
network to grow.

Biswajit Mahanty and Virupaxi Bagodi (2006) The success of two wheeler
manufacturers in India depends on the competitive advantage gained by them through
after sales service and providing and maintaining customer satisfaction in the face of
rapid changes in technology is a difficult task, which can be overcome by timely addition
of capacity and upgrading of technical manpower and focusing on the CRM programs.

Biswajit Mahanty and Virupaxi Bagodi (2007) More than 55 million two-wheelers are
moving on Indian roads. Accordingly, two-wheeler service sector should have generated
revenue amounting to INR 100,000 million per year, but this has not been realized in the
organized service sector, the Indian two-wheeler service industry has not considered
servicing as a line of business and providing conveniently reliable services is most
important in two-wheeler services in India to capture the market.

53
Biswajit Mahanty and Virupaxi Bagodi (2008) It is an era of customer delight for the
two- w h e e l e r industry and the conventional measures implemented by the service
organizations tend to be inadequate to attract customers persistently.

Gordon Fullerton (2006), “Putting relationship in CRM”, that JEEP, a division of

Daimler Chrysler Automobile Company, has served a classic example of CRM program
that provides a considerable value to both the customers and the firm by developing a
program exclusively for jeep owners and fostered a community that is highly effectively
committed to the product, the brand, and the customers.

Kevin Keller (2012) Caterpillar has become a leading firm by maximizing the total
customer value with the help of effective CRM, best after sales service in the industry
and better trained dealer. This allows the firm to command a premium price of 10% to
20% higher than competitors such as Volvo, Komatsu etc.

Michael Cusumano, Steve Kahl and Fernaando Suarez (2008) in their research paper
industries, services have become increasingly important. In case of automobiles, many
automakers generate the vast majority of their profits from a service activity closely tied
to their product activity. The automobile industry overall generates a large portion of its
profits from other product-related service activities such as insurance and repairs. The
authors argued that despite the seeming importance of services, there is not much theory
to help researchers or practitioners explain the “A theory of services in product
industries,” has concluded that in many products oriented 2 conditions under which
services matter in product industries. The general view that emerges from the services
literature is that services tend to become important for manufacturing firms once their
industries reach a mature stage.

Milind Bade (2011) GM-Marketing, Bajaj Auto, has mentioned that Bajaj Auto Limited
is currently trying to move the industry from a commuter to a biker mindset and at
present the focus of the company is on keeping the sub brands and the mother brand
different and the main motive behind establishing individual brand is to create
differentiation which would help Bajaj auto, as an organization to develop relationship
easily with its customers. Mona J Fitzsimmons (2010) has concluded that the
profitability of automobile manufacturers depends on exploiting value-added services for

54
instance automobile manufacturers have discovered that financing and after sales service
can achieve significant profits.

Customer Relationship Management

Abhijeet Singh and Brijesh Kumar (2011) mentioned that people term CRM as
technology based initiative, but the fact is that it is an enterprise wide activity which uses
technology to facilitate various functions – sales, marketing , service etc and CRM
initiative starts with identification of customers with the objective of differentiating from
customer to customer and he further mentions that it is not the products or services that
please the customers, but the right attitude of handling them and building a closer
relationship with them. A company with many customers with close bonding would
enjoy higher revenues and profitability.

Alan Smith (2006) mentioned that since the mid-1990s many industries were
experiencing increased demand from their customers for higher quality and easier access
to service thus corporations and top managers started to rethink their traditional ways of
providing service and customer relationship management started to become a strategic
asset among corporations. A Mukund (2006) has studied the role of CRM in Tesco and
concluded that the loyalty card scheme launched by Tesco in 1995, laid the foundation of
a CRM frame work that made Tesco UKs number one retailer and the data collected
through these cards formed the basis for formulating strategies that offered customers
personalized services in cost effective manner and today CRM in Tesco is more of a
companywide philosophy.

A V Vedpuriswar(2003) has highlighted that ICFAI realized that the growth is the key to
long term survival and much of its growth will come from keeping its eyes and ears
tuned to environment and for this ICFAI implemented CRM strategies specially for the
students enrolment and processing of examination hall tickets, and this lead to growth of
ICFAI which has surprised traditional academic institutions.

Calin Gurau (2003) mentioned that the advantages of the Internet as a transaction and
communication channel present new opportunities for businesses to create a long- term
relationship with their customers and the level of e-service quality is an essential
component of this customer-centric strategy, thus the companies need to establish the

55
 optimum level of e service quality, taking into consideration customers’ satisfaction, , the
competitive conditions of the market, but however, the effective use of this method
requires the implementation of e-CRM systems, structured around a customer-centric
approach.

Celent (2006) concluded that banks can gain full value from their investments in
CRM technology by leveraging on customer knowledge and TCF bank a midsize that has
a community banking culture realized the same and implemented CRM for its online
banking process and this helped TCF bank to reap rewards during direct customer
interaction.

Gaurav Patra (2006) has mentioned that investing in cutting edge technologies, high end
equipment’s and robust infrastructure, will be of little use, unless the customers are
serviced satisfactorily, thus Tata Teleservices Limited, adopted, and deployed CRM.

RESEARCH METHODOLOGY

Research is a common parlance which refers to search for knowledge. It is a procedure of

logical and systematic application of the fundamentals of science to the general and overall

questions of a study and scientific technique, which provide precise tools, specific

procedures, and technical rather philosophical means for getting and ordering the data prior to

their logical analysis and manipulating different type of research designs is available

depending upon the nature of research project, availability of manpower and circumstances.

RESEARCH DESIGN

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.

In fact, the research design is the conceptual structure within which research is conducted.

This research was descriptive in nature.

56
 DESCRIPTIVE RESEARCH

The research undertaken was descriptive research as it was concerned with specific

predictions, with narration of facts and characteristics concerning a study on Job satisfaction

of employees working.

METHODS OF DATA COLLECTION

There are several methods of collecting primary data, particularly in surveys and descriptive

researches. In descriptive research, we obtain primary data either through observation or

through direct communication with respondents in one form or another or through personal

interviews. I have used questionnaires (Primary) and Internet source (Secondary) for data

Collection.

a. DATA SOURCE

There were two types of data sources used in this research. These were:

PRIMARY DATA

Primary data is the data collected for the first time from the source and never have been used

earlier. The data can be collected through interviews, observations and questionnaire.

SECONDARY DATA

Secondary data is the data collected from already been use or published information like

journals, diaries, books, etc. In, this research project, secondary source used were various

journals, and website of various online journals.

b. SAMPLE DESIGN

A sample design is made up of two elements. Sampling method refers to the rules and

procedures by which some elements of the population are included in the sample. Some

57
 common sampling methods are simple random sampling, stratified sampling, and cluster

sampling.

c. UNIVERSE OF STUDY

Universe of the study means all the employees in Lucknow.

SAMPLE AREA

Lucknow.

SIMPLE RANDOM SAMPLING

I have used Random sample for study.

d. SAMPLE SIZE

A sample of minimum respondents will be selected from Lucknow. An effort was made to

select respondents evenly. The survey was carried out on 100 respondents.

e. SAMPLE UNIT

Employees in Lucknow

f. STATISTICAL TOOLS TO BE USED

A structured questionnaire is used to collect the data and data will be analyzed with the help

of percentage table, respective graph, bar graph and pie charts.

TOOLS OF PRESENTATION:

It means what all tools are used to present the data in a meaningful way so that it becomes

easily understandable. In this research tables and graphs were used for presenting the data.

58
 RESULTS AND DISCUSSION

1. What is your age group?

Age Group No. of Respondents % of Respondents

Less than 20 4 4

20-30 42 42

30-40 36 36

40-50 14 14

50 & above 4 4

Total 100 100

% of Respondents
4 4
14
Less than 20
20-30
30-40
40-50
42
50 & above

36

Source - Questionnaire

Interpretation: 42 %Of the Respondents Are Belonging To Age Group 20-30 and 36% of
the respondents are belongs to 30-40 age group and 14 % respondents are belongs to 40 -50
age group. Most of the respondents belong to 20–30 age groups.

2. What is your occupation

59
 a) Student

b) Professional or service

c) Govt. Employee

d) Business man

No. of respondents % of respondents

Student 0 0
Professional or service 36 36
Govt. Employee 4 4
Business man 60 60
Total 100 100

No. of respondents

36% Student
Professional or service
Govt. Employee
Business man

60%

4%

Source - Questionnaire

Interpretation: 36 %Of the Respondents Are Belonging To professional or services and

60% of the respondents are belongs to business man group and 4% belongs to other.

3. Under which income level you came

a) Less than 50 k

60
 b) 50k – 1 lakh

c) 1 lakh – 2 lakh

d) 2 lakh or more than

No. of respondents % of respondents

Less than 50 k 0 0
50k – 1 lakh 0 0
1 lakh – 2 lakh 32 32
2 lakh or more than 68 68
Total 100 100

No. of respondents
Less than 50 k 50k – 1 lakh 1 lakh – 2 lakh
2 lakh or more than

32%

68%

Interpretation: 32 %Of the Respondents Are Belonging To income group 1 lakh – 2 lakh
and 68% of the respondents are belongs to income group 2 lakh or more than.

4. What made you to buy this vehicle?

S. No. Features No. of Respondents %

1. Model 23 23

61
 2. Price 13 13
3. Quality 21 21
4. Brand Name 29 29
5. Other Benefits 14 14
100 100

35
No. of Respondents

30 29

25 23
21
20
Series1
15 13 14

10
5
0
Model Price Quality Brand Other
Name Benefits

Reason for buying TATA Vehicle

Interpretation:
29% of the customer’s opted Tata vehicle basing on the brand name, 23% basing on the
model, 21% basing on the quality, 14% basing on other benefits and 13% basing on the price.
The brand name of the TATA and quality of product should be taken care of while providing
service.

5. Are you satisfied about the explanation about the benefit / features / warranty of
the vehicle and the financial schemes and the delivery procedure at the time of
purchase?

62
 S. No. Features No. of Respondents %

1. Delighted 4 4

2. Very satisfied 27 27

3. Satisfied 45 45

4. Somewhat dissatisfied 12 12

5. Very dissatisfied - 0

6. No response 12 12

100 100
No. of Respondents

50
45
45
40 Series1
35
30 27
25
20
15 12 12
10
4
5
0
0
Delighted Very satis- Satisfied Somewhat Very dissat- No response
fied dissatisfied isfied

Satisfaction Level
Interpretation: 76% of the customers are satisfied about the explanation about the benefits,
features, etc., at the time of purchase, out of which 27% are very satisfied, also 12% are
somewhat dissatisfied, so the company had to made more effort to satisfy the dissatisfied
customers.

6. Are you satisfied with the reception of the service advisor?

S. No. Features No. of Respondents %

1. Delighted 11 11
2. Very satisfied 50 50
3. Satisfied 30 30

63
 4. Somewhat dissatisfied 9 9
5. Very dissatisfied - 0
100 100

60

50
50
No. of Respondents

40

30
30
Series1

20

11
9
10

0
0
Delighted Very satisfied Satisfied Somewhat Very dissatis-
dissatisfied fied

Satisfaction Level

Interpretation:
As we see that 61% of the customers are more than just satisfied by the reception of the
service advisors, thus the service advisors are performing their duties with perfection; there
are only 9% customers that are somewhat dissatisfied from service advisors.

64
 7. Are you satisfied with the facilities of the service station like customer waiting
room etc.

S. No. Features No. of Respondents %

1. Delighted 13 13
2. Very satisfied 30 30
3. Satisfied 51 51
4. Somewhat dissatisfied 4 4
5. Very dissatisfied 2 2
100 100

60

51
50
No. of Respondents

40

30
30
Series1

20
13
10
4
2
0
Delighted Very satisfied Satisfied Somewhat Very dissatisfied
dissatisfied

Satisfaction Level

Interpretation:
51% of the customers are satisfied by the facilities of the service station, 30% are very
satisfied, and the valuable suggestions can be taken from the unsatisfied customers to
improve the facilities.

65
 8. Are the services being attended correctly to the relevant complaint?

S. No. Features No. of Respondents %

1. Yes 85 85
2. No 15 15
100 100

90 8500%

80
70
60
50 Se-
40 ries1

30
20 1500%

10
0
Yes No

Interpretation:
85% of the customer’s say that the service is being attended correctly to relevant complaint.
Whereas 15% feel that the service is not attended correctly to relevant complaint.

66
 9. Are you satisfied with the solutions to all the problems reported by you?

S. No. Features No. of Respondents %

1. Delighted 6 6
2. Very satisfied 40 40
3. Satisfied 34 34
4. Somewhat dissatisfied 16 16
5. Very dissatisfied 4 4
100 100

45
40
40

35 34
No. of Respondents

30

25

20
Series1
16
15

10
6
5 4

0
Delighted Very satisfied Satisfied Somewhat Very dissatis-
dissatisfied fied

Satisfaction Level

Interpretation:
40% of the customers are very satisfied with the solutions to all the problems reported by
them, 34% are satisfied, 16% are somewhat dissatisfied, 6% are delighted and 4% are very
dissatisfied. Thus 20% of the customers are not totally satisfied with the solution for their
problem thus the service advisor has to provide most satisfactory solution.

67
 10. Are you satisfied with the delivery made i.e., is the delivery made in time as per
the conditions desired by you from service station.

S. No. Features No. of Respondents %

1. Delighted 10 10
2. Very satisfied 33 33
3. Satisfied 34 34
4. Somewhat dissatisfied 19 19
5. Very dissatisfied 4 4
100 100

40

35 34
33

30
No. of Respondents

25

20 19
Series1
15
10
10

5 4

0
Delighted Very satisfied Satisfied Somewhat Very dissatis-
dissatisfied fied

Satisfaction Level

Interpretation:
34% of the customers are satisfied with the delivery made from the service station, 33% are
very satisfied, 19% are somewhat dissatisfied, 10% are delighted and 9% are very
dissatisfied.

68
 11. Are you satisfied with the explanation of job done and bill at the time of delivery.

S. No. Features No. of Respondents %

1. Delighted 10 10
2. Very satisfied 41 41
3. Satisfied 37 37
4. Somewhat dissatisfied 12 12
5. Very dissatisfied - 0
100 100

45
41
40
37
35
No. of Respondents

30

25
Series1
20

15
12
10
10

5
0
0
Delighted Very satisfied Satisfied Somewhat Very dissatis-
dissatisfied fied

Satisfaction Level

Interpretation:
1% of the customers are very satisfied with the explanation of job done and bill at the time of
delivery, 37% are satisfied, 12% are somewhat dissatisfied and 10% are delighted.

69
 12. Are your receiving our service reminders regularly?

S. No. Features No. of Respondents %

1. Yes 56 56
2. No 44 44
100 100

60 5600%

50
4400%

40
Se-
30 ries1

20

10

0
Yes No

Interpretation:
56% of the customers are receiving the service remainders regularly. Whereas 44% of the
customers are not receiving the service remainders regularly.

70
 13. Have you been informed about the next service schedule?

S. No. Features No. of Respondents %

1. Yes 60 60
2. No 40 40
100 100

70
6000%
60

50
4000%
40
Se-
30 ries1

20

10

0
Yes No

Interpretation:
60% of the customers have been informed about the next service schedule. Whereas 40% of
the customers are not informed about the next service schedule.

71
 14. How is the reception at the time of enquiry by the sales personnel?

S. No. Features No. of Respondents %

1. Delighted 12 12
2. Very satisfied 30 30
3. Satisfied 42 42
4. Somewhat dissatisfied 4 4
5. Very dissatisfied - 0
6. No response 12 12
100 100

45 42
No. of Respondents

40
35 Series1
30
30
25
20
15 12 12
10
4
5
0
0
Delighted Very satisfied Satisfied Somewhat Very dissatis- No response
dissatisfied fied

Satisfaction Level

Interpretation:
42% of the customers are satisfied by the reception of the sales personnel at the time of
enquiry, 30% are very satisfied, 12% are delighted so the sale personnel are performing their
task quite efficiently. Also there are 4% customers that are somewhat dissatisfied and 12%
had not responded to the above question.

72
 15. Are you satisfied with the time taken to open the job card (work order).

S. No. Features No. of Respondents %

1. Delighted 23 23
2. Very satisfied 44 44
3. Satisfied 25 25
4. Somewhat dissatisfied 8 8
5. Very dissatisfied - 0
100 100

50
45 44

40
No. of Respondents

35
30
25
25 23
Series1
20
15
10 8

5
0
0
Delighted Very satisfied Satisfied Somewhat Very dissatis-
dissatisfied fied

Satisfaction Level

Interpretation:
44% of the customers are very satisfied by the time taken to open the job card, 25% are
satisfied, 23% are delighted and 8% are somewhat dissatisfied.

73
 DISCUSIONS
Strategic planning sets the direction for the organization by defining its mission, vision, and

long-term goals.

● Nowadays, most businesses are implementing marketing plans to achieve their

company’s mission and goals. But almost 43% of the companies still do not have a marketing

plan. Though the number is low as compared to the ones’ who are using it, but it's actually a

little shocking. Since a marketing plan is very essential for a successful business.

● Respondents that are included in the sample survey are mostly from the middle

management level in their respective organizations and are mainly young, mostly in the age

group of 18-30 years old.

● There is a slight difference in the users’ gender, and most of the respondents who are

working claimed to be unmarried.

● Most of the users are graduates & post-graduates and are working mostly into the

B2B and B2C segment.

● Majority of them are from the FMCG sector and from the business services, and the

number of people employed in the majority of the organizations is 300-499.

● The majority of the respondents mentioned that the current marketing plan of their

organization is self-written, i.e., by the employee of the company, since the marketing

professionals and other staff members would be knowing their company’s strengths,

weaknesses, etc. better as compared to the outsider.

● 39% of the respondents said that the time covered by your current marketing plan is

1-2 years and the average time of most of the companies is 1.5-2 years.

● The findings suggest that the most thoroughly mentioned issues in the marketing plan

is the evaluation of their company’s strengths, weaknesses, opportunities and threats (SWOT

Analysis) and company’s past performance. The reason could be so that the employees can

74
have a look and learn from past experiences, thereby helping them in making a better

decision beforehand.

● The major objective of the respondents’ companies is to increase sales of the products

in the markets they are servicing in; and to increase the brand awareness.

● More than half of the respondents' mentioned that the number of objectives mentioned

in the marketing plan is 1-4 and the majority of them think that they will be able to achieve 3-

4 objectives.

● The findings of the survey demonstrates that the most thoroughly

explained/acknowledged issue in their marketing plan is the media/platforms to use for

advertising(Radio, Social Media, etc.) and the employee training needs in marketing as

employees do need to be trained first in order to see the effective results of a marketing plan.

75
 CONCLUSION
 MSIL was established in February 1981 and started the production in 1983
 It has three manufacturing plants with presently total production
capacity is 17, 50,000 Vehicles per year.
 It has 53% market share and establish market leadership in Indian market.
 The present marketing strategy is good enough to sustain the competition.
 MSIL follows the political, economic, societal, and technological
norms and helps us to increase our national economy.
 MSIL’s marketing strategy is good enough to take the competitive advantage.
 Maruti Suzuki should focus on digital marketing platforms
 The Maruti Suzuki has a huge market and has left no stone
unturned to satisfy the customers.
 It has models in every segment of the automobile market.
 Maruti Suzuki stands for value as much as it stands for performance.
 In spite of rising input costs, the company tries their best to keep prices down.
 Competitive strategy of this company facilitated healthy
profit and customer satisfaction and its recognition as a
company which stands for environmental concerns.
 Be friendly and approachable
 Have clearly defined customer service policy.
 Attention to details.
 Anticipate customer’s needs and go out of the way to help them out
 Honor the promise.

76
 REFERENCES
WEBSITE:
1. www.marutiudyog.com
2. www.indiacars.com
3. www.autcarindia.com
References
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Marketing for the 21st century. In Marketing Management (12th ed., pp.
3-4). New Delhi: Dorling Kindersley (India) Pvt. Ltd.
2. Karunakaran, K. (2008). Introduction to Marketing; Scope and
Importance of Marketing.
In Marketing Management (2nd ed., pp. 3-4). Mumbai, India: Himalaya
Publishing House.
3. Kotler, P. (2004). Defining market for the twenty first century. In
Marketing Management (4th ed., pp. 8-9). Delhi, India: Pearson
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4. Pillai, R., & Bagavathi. (2010). Introduction to Marketing. In Marketing
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 APPENDIX

Name:
Gender:
Age:
Designation:
Experience:

1. What made you to buy this vehicle?

a) Model
b) Price
c) Quality
d) Brand Name
e) Other Benefits

2. Are you satisfied about the explanation about the benefit / features / warranty of
the vehicle and the financial schemes and the delivery procedure at the time of
purchase?
a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied
f) No response

3. Which type of car will you prefer?

a) Compact

b) SUV

c) Sedan

d) Any

79
4. What will be the priority when you are buying a car?

a) Performance

b) Fuel economy

c) Comfort

d) Safety feature

5. Are you satisfied with the reception of the service advisor?

a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied

6. Are you satisfied with the facilities of the service station like customer waiting
room etc.?
a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied

7. Are the services being attended correctly to the relevant complaint?

a) Yes
b) No

8. Are you satisfied with the solutions to all the problems reported by you?
a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied

80
9. Are you satisfied with the delivery made i.e., is the delivery made in time as per
the conditions desired by you from service station?
a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied

10. Are you satisfied with the explanation of job done and bill at the time of delivery.
a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied

11. Are your receiving our service reminders regularly?

a) Yes
b) No

12. Have you been informed about the next service schedule?
a) Yes
b) No

13. How is the reception at the time of enquiry by the sales personnel?
a) Delighted
b) Very satisfied
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied
f) No response

14. Are you satisfied with the time taken to open the job card (work order)?
a) Delighted
b) Very satisfied

81
c) Satisfied
d) Somewhat dissatisfied
e) Very dissatisfied

82