You are on page 1of 94

SHANTESHA MOTORS PVT. LTD.

EXECUTIVE SUMMARY

A project report containing marketing research on “The Impact of Brand Preference among B-Segment cars on Buying behavior of customers at Belgaum city” is partial fulfillment of requirement of MBA-II semester in Belgaum Institute of Management Studies, Belgaum.

So the need to know which is the Brand preferred and the Buying behaviour of customer, I collected the information by a structured questionnaire that included all the requirements what the SMPL needed and the questionnaire is attached in the appendix. This study helps the organization in the following ways: • • • Management will know the most preferred brand among B-segment cars Management will understand the buying behaviour of customers To understand customers preference towards dealers.

So these are some fact by conducting this survey.

BABASAB PATIL

Page 1

SHANTESHA MOTORS PVT. LTD.
INTRODUCTION It gives me an immense pleasure to present you this entire project. The project emphases on “THE IMPACT OF BRAND PREFERENCE AMONG B-SEGMENT CARS ON BUYING BEHAVIOUR OF CUSTOMERS AT BELGAUM CITY ” undertaken at Shantesha Motors Pvt Ltd. Belgaum. the study is

The project report

focuses on

the Brand preferred by the customers, their Buying service the customer

Behaviour, customers preference towards dealers and what all wanted.

LITERATURE REVIEW Brand preference: Today, the primary capital of much business is their brands. For decades, the value of the company was measured in terms of its real estate, then tangible assets, plants and equipments. However, it has recently been recognized that a company’s real value lies outside the business itself, in the minds of potential buyers. For the potential customer, a brand is a landmark. Like money, it facilitates trade. Faced with a multitude of silent or “hard –to-read” products, whose performance cannot be assessed at first glance, customer are confused. Brand and prices make products easier to “read”, removing uncertainty. A product price measures it’s monetary value, it’s brand identifies the products and reveals the facts of it’s differences functional value ,pleasure value and symbolic value as a reflection as a buyer’s self image. One word, One Symbol

BABASAB PATIL

Page 2

SHANTESHA MOTORS PVT. LTD.
Summarizes an idea, a sentence and a long list of attributes ,values and principles infused into the product or service .A brand encapsulates identity, origin and difference. It evokes this information concentrate in a word or a sign. This is why brands are vital for business exchange when faced with, say, hundreds of personal computers, a buyer can use brands to structure this selection, to segment it, helping him to decide what he wants, looking towards the products whose brand indicate that they will satisfy his expectations, needs, or wishes. In markets in which technology and fashion mean that the choice is constantly evolving, brands provide havens of stability, describing an identity and promising constant features and direction.

Brands are the real capital of business, yet brand management is still in its infancy. At present, the tendency is to manage products that happen to have a name. Management is still living in the age of the products, but brand management involves other, specific approaches and principles. These are the focus of this presentation.

A brand is not a product: it is the product’s source, its meaning, and its direction, and it defines its identity in time and space. Businesses are discovering that brand equity must be managed, nurtured, and controlled. Brand consciousness is raising new questions for mangers: how many brands be extended? What products and service should it encompass? Or, on the other hand, what should its limit be, even when a certain turnovers is expected from it? Going too far can also weaken brand equity.

BABASAB PATIL

Page 3

SHANTESHA MOTORS PVT. LTD.
How do you manage brands over time and keep them up to date, as technologies, products and customers are changing? How do you manage while staying the same? How do provide consistent synergic management of the range of product sold under a single brand? How do you optimize image in the relationship between products and their brand? How far can a brand be extended geographically? Does it have the potential to become a homogeneous geo-brand in all countries? Or is this impossible, or even undesirable? Many companies have the same name as their brand (e.g., Renault, Nestle, IBM, BASF). What difference between managing a brand image and managing corporate and institutional image? Finally, given that brands do have a value, how can this be measured, so that it can be tracked and controlled? Should it be capitalized on the balance sheet, to indicate its true economic value to stockholders, investors, and financial partners?

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

Tony O’ Reilly, former CEO of H. J. Heinz, proposed this test of brand loyalty: “My acid test… is whether a house wife, intending to buy Heinz tomato ketchup in a store, finding it to be out of stock, will walk out of the store to buy it elsewhere. ”

BABASAB PATIL

Page 4

SHANTESHA MOTORS PVT. LTD.
Aaker distinguished five levels of customer attitude toward his or her brand, from lowest to highest. 1. 2. 3. 4. 5. Customer will change brands, especially for price reasons. No brand loyalty. Customer is satisfied. No reason to change the brand. Customer is satisfied and would incur costs by changing brand. Customer values the brands and sees it as a friend. Customer is devoted to the brand.

Statement of the problem
In Indian car industry, small car segments have played a very crucial and significant role due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into Indian markets, the pace of competition has hiked. This has brought into market, number of Brands and their variants competing to with each other.

All these factors have resulted in flux in the minds of the customers as to which brand to go for. In other words, Brand-switching is gaining the momentum. So to position the brand in the minds of the customers the company or dealer should keep the track of this shift in preferences. Hence the main purpose of this study is to find the “Impact of Brand preference among B-Segment cars on Buying behaviour of city”. customers at Belgaum

BABASAB PATIL

Page 5

SHANTESHA MOTORS PVT. LTD.

Purpose of study
The purpose of the study is to know the Brand preferred by the customers and change in buying behavior can be estimated by this study. The marketing strategies can be designed in accordance with this change. It will be helpful for the managers to make decisions. Hence, this study should be conducted.

Scope of the study
The main purpose of the study is to know the “Impact of Brand preference among Bsegment cars on Buying Behavior of Customers at Belgaum city”. This study will provide solutions to the management by understanding customers feedback. Through this study Management will know :  The reason why people opt four-wheeler.  To know the features considered by the customers while purchasing a car.  To know the most preferred brand by the customers.  The scope of the study is restricted up to the Belgaum city.

BABASAB PATIL

Page 6

SHANTESHA MOTORS PVT. LTD.

Objectives of the study
1. 2. 3. 4. 5. 6. To find the impact of Brand preference among B-segment cars. To understand the Buying behaviour of customers. To know the facilities/services expected by the customers from the dealer. To know the means of finance preferred by the customers. To know the reason why people opt four-wheeler. To know the significant attributes preferred by customers in a car.

BABASAB PATIL

Page 7

SHANTESHA MOTORS PVT. LTD.
ORGANIZATION PROFILE

MARUTI UDYOG LIMITED
ORGANIZATION OVERVIEW:

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective partners worldwide. This was not only due to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between Govt. of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

BABASAB PATIL

Page 8

SHANTESHA MOTORS PVT. LTD.
The objectives of MUL then were: 1. Modernization of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources. 3. Production of large number of motor vehicles which was necessary for economic growth.

ORGANIZATION VISION: "The Leader in The Indian Automobile Industry, creating Customer Delight and Shareholder's Wealth; A pride of India."

OUR CORE VALUES: 1. Customer Obsession 2. Fast, Flexible and First Mover 3. Innovation and Creativity 4. Networking and Partnership 5. Openness and Learning

BABASAB PATIL

Page 9

SHANTESHA MOTORS PVT. LTD.
TECHNOLOGICAL ADVANTAGE:

We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become more pleasurable to drive.

PRDUCTION/ R & D:

Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.

BABASAB PATIL

Page 10

SHANTESHA MOTORS PVT. LTD.

Production Milestones 1 st vehicle produced, December 1983 1,00,000 vehicles produced by August, 1986 5,00,000 vehicles produced by June, 1990 10,00,000 vehicles produced by March, 1994 15,00,000 vehicles produced by April, 1996 20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999 30,00,000 vehicles produced by June, 2000 35,00,000 vehicles produced by December 2001 40,00,000 vehicles produced by April, 2003 45,00,000 vehicles produced by April, 2004

MILESTONES: 2006 The car of the Year Maruti SWIFT.

2005
The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8%

BABASAB PATIL

Page 11

SHANTESHA MOTORS PVT. LTD.
2004
New (non AlC) variant of Alto Alto becomes India's new best selling car LPG variant of 'Omni Cargo' Versa 5-seater, a new variant Baleno LXI, a new variant Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago

2003
New Suzuki Grand Vitara XL-7 Redesigned and all-new Zen New upgraded WagonR Enters into partnership with State Bank of India Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times

2002
WagonR Pride Esteem Diesel. All other variants upgraded Maruti Insurance. Two new subsidiaries started: Maruti Insurance

BABASAB PATIL

Page 12

SHANTESHA MOTORS PVT. LTD.
Distributor Services and Maruti Insurance Brokers Limited Alto Spin LXi, with electronic power steering Special edition of Maruti 800, India's first colour-coordinated car Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 Percent

2001
Zen Lxi Maruti True Value launched in Bangalore and Delhi Maruti Versa, India's first luxury MPV Alto Spin LXi, with electronic power steering Alto Vxi Customer information centers launched in Hyderabad, Bangalore and Chennai Launch of versa

2000
First car company in India to launch a Call Center New Alto Altura, a luxury estate car

BABASAB PATIL

Page 13

SHANTESHA MOTORS PVT. LTD.

IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits

1999
Maruti 800 EX ( 796cc, hatchback car) Zen LX (993cc, hatchback car) Zen VXi (993cc, hatchback car with power steering) Omni XL ( 796cc, MUV, high roof) Baleno (1600cc, 3 Box Car) Wagon R Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives

1998
Maruti launches website as part of CRM initiatives Zen D (1527 cc diesel, hatchback car) Zen VX & Zen VX Automatic New (Omni & Omni E) (796cc, MUV) Launch of website as part of CRM initiatives

BABASAB PATIL

Page 14

SHANTESHA MOTORS PVT. LTD.

1997
1998 Esteem (1299cc, 3 box car) LX, VX and AX New Maruti 800 (796cc,hatchback Car) Standard and Deluxe Produced the 2 millionth vehicle since the commencement of production

1996
Gypsy (E) (970cc, 4WD 8 seater) Omni (E) (796cc, MUV, 8 seater) Gypsy King (1298cc, 4WD, off road vehicle) Zen Automatic (993cc, hatchback car) Esteem 1.3L (1298 cc, 3 box Car)AX Launch of 24-hour emergency on-road vehicle service

1995
Esteem 1.3L (1298 cc, 3 box car)VX With the launch of second plant, installed capacity reached 200,000 units

BABASAB PATIL

Page 15

SHANTESHA MOTORS PVT. LTD.
1994
Esteem1.3L (1298cc, 3 box car) LX Produced the 1 millionth vehicle since the commencement of production

1993
Zen(993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto

1992
SMC increases its stake

1991
Reaches cumulative indigenisation of 65 percent for all vehicles produced

1990
Maruti 1000(970cc, 3 box), India's first contemporary sedan

1988
Installed capacity increased to 100,000 units

BABASAB PATIL

Page 16

SHANTESHA MOTORS PVT. LTD.

1987
Exported first lot of 500 cars to Hungary

1986
Maruti 800 ( New Model-796cc, hatchback Car) Maruti 800 ( New Model-796cc, hatchback Car)

1985
Launch of Maruti Gypsy (970cc, 4 WD off-road vehicle)

1984
Omni, a 796cc MUV Installed capacity reached 40,000 units

1983
Maruti 800, a 796 cc hatchback, India's first affordable car. Production was started under JV A

1982
License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan

BABASAB PATIL

Page 17

SHANTESHA MOTORS PVT. LTD.
1981
Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act, 1956

AWARDS :

2004
Maruti Suzuki was No.1 in Customer Satisfaction, No.1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No.1 in Product Appeal (Esteem and Wagon R) No.1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG

2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

BABASAB PATIL

Page 18

SHANTESHA MOTORS PVT. LTD.
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (200 1) for 4th time in a row

2001
MUL tops in J D Power CSI (200 1) for 2nd time in a row: another international first

2000
Maruti bags JD Power CSI – 1st rank; unique achievement by market leader anywhere in the world

1999
MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee

1998
CII's Business Excellence A ward

BABASAB PATIL

Page 19

SHANTESHA MOTORS PVT. LTD.
1996
Maruti wins INSSAN award for "Excellence in Suggestion Scheme"

Awarded the Star Trading House status by Ministry of Commerce

1994-95
Engineering Exports Promotion Council's award for export performance

1994
Best Canteen award among Haryana Industries as part of employee welfare

1992-93
Engineering Exports Promotion Council's award for export performance

1991-92
Engineering Exports Promotion Council's award for export performance

BABASAB PATIL

Page 20

SHANTESHA MOTORS PVT. LTD.
SOCIAL WELFARE:

Welfare Camps
Every year we organize blood donation camps along with Red Cross, in which employees donate blood. Eye check-up camps, family planning related camps and otherhealth camps are also organized periodically.

Medical support & welfare
The employees of Maruti have always donated generously to people affected by natural calamities. They contributed Rs. 2 million to rehabilitate earthquake victims in Latur. We also run a creche for the children of construction workers, which provides food shelter and education for 85 children.

Education to underprivileged
DPS Maruti Shiksha Kendra, an education programme for the underprivileged, was inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate the children of below poverty line (BPL) families from the nearby villages of Gurgaon district. 120 students in the age group of 5-8 years have already enrolled. DPS Maruti Kunj is providing books, writing material and uniforms, refreshment and transport facilities to these children.

BABASAB PATIL

Page 21

SHANTESHA MOTORS PVT. LTD.
Education Programme for mothers
'Chetna', an education programme for mothers - is an another endeavour to provide basic education to mothers of the students of DPS Maruti Kunj and surrounding villages. Majority of students at the school is first generation learners. Therefore, the concept of starting a movement of learning 'Chetna' for mothers has been promoted. The response has been encouraging and about 130 mothers are attending it regularly.

ENVIRONMENT CONCERN:

Our environment Policy:

• • • • • •

Prevent pollution. Promote energy reduction and use of alternative energy. Manage/ reduce those materials that put stress on environment. Promote the three R's (Reduce, Reuse, Recycle). Promote "Green" procurement. Provide our employees with environmental education to increase their awareness.

BABASAB PATIL

Page 22

SHANTESHA MOTORS PVT. LTD.
Since the commencement of operations in 1981 we've been committed to the protection of the environment and conservation of non-renewable .energy sources. Our proactive approach depends not only upon meeting the expectations of the regulatory authorities but achieving the high standards that we've set as a responsible corporate citizen.

This philosophy of trying to make a difference to the environment penetrates through our employees to the process of manufacture and finally into our products.

Pollution Control Camps
Our elaborate system of Free Pollution Check-Up Camps which run at regular intervals, is designed at making the cars already on the road operate more efficiently. It also inculcates awareness for environmental protection among the many car users of India.

MPFI
We have introduced Euro II compliant MPFI engines in all our models. Along with our vendors, we've made investments of over Rs. 60 million for introducing MPFI technology compliant cars.

CNG
Maruti is a strong advocate of CNG, a more eco-friendly fuel alternative to diesel and petrol. In our endeavour to provide a cleaner and greener option to the customer, we are in the process of equipping an extensive dealer network to assist Maruti owners in fitting CNG kits.

BABASAB PATIL

Page 23

SHANTESHA MOTORS PVT. LTD.

Rain Water Harvesting
To recharge the aquifer, measures were taken to harvest the rain water through soak pits, recharging shafts and water lagoons. These measures are capable of charging nearly 50% of the average annual rainfall at Maruti, into the Earth.

MARUTI CULTURE: Our employees are our greatest strength and asset. It is this underlying philosophy that has molded our workforce into a team with common goals and objectives. Our Employee-

Management relationship is therefore characterized by:
• • • • Participative Management. Teamwork & Kaizen. Communication and information sharing. Open office culture for easy accessibility

BABASAB PATIL

Page 24

SHANTESHA MOTORS PVT. LTD.
To implement this philosophy, we have taken several measures like a flat organizational structure. There are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open office, common uniforms (at all levels), and a common canteen for all. This structure ensures better communication and speedy decision-making processes. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees. The major players in small car segment are: Hyundai Motors India Ltd Telco Fiat India Ltd The battle royal in the India car market has entered the next phase. One old assumption has been vindicated – that over 80% of the Indian car market is still confined to the small, sub – Rs 4 lakh models. And that mod-size and digger models can only provide the icing on the cake, not the cake itself to any manufacturer.

Quite apart from these specific lessons that each man learnt, there were several surprises that the car market threw up. First world-class technology and quality were considered a given now. Second, the Indian buyer had begun to expect model and engine upgrades as frequently as his US or European counterparts. The Indica had to

BABASAB PATIL

Page 25

SHANTESHA MOTORS PVT. LTD.
upgrade their engines in less than one year after launch, the power steering option barely a year after it hit the market.

And finally, while the manufacturers could continue to refer to it as the ‘Indian small car segment ’, the buyer characteristics were anything but homogeneous. There were distinct group with distinct preferences. And the days of one model becoming the undisputed heavyweight champion were over for good.

Brief description of major players in this segment.

Hyundai: Hyundai has become the undisputed number two in the Indian auto market, and the only one-even rivals admit- with the capability of giving leader Maruti a run for its money in the total volume stakes though Hyundai in India currently sells just about a quarter of the numbers that Maruti does.

Hyundai got everything right because it got the value-price–technology equation almost perfectly right from day one. The Santro was an instant winner from the day it was introduced in the Indian market because it offered the optimum mix of space and technology in the small car market, at a highly competitive price. And with easy consumer financing available in the market,Hyundai did not have to work too hard to persuade even entry-level car buyers to go for the Santro instead of the Maruti 800.

BABASAB PATIL

Page 26

SHANTESHA MOTORS PVT. LTD.
And when it launched mid-size Accent some time later, Hyundai proved that it could get its value-price equation consistently right across different segments.

But despite its great start, Hyundai made two mistakes and by Maruti it is also one under the most pressure because after zooming to the number two spot, it cannot afford to skid in the race. But Telco’s Indica is snapping at its heels. And Maruti's backlash is expected to target the Santro more than any other model. The two miscalculations that Hyundai made? First, while Hyundai Santro was harping on the fact that it was a new generation car, it hadn't brought its latest engine technology to India, it was a mistake that rival Matiz capitalised on once Euro-II pollution norms were announced for the motors. Daewoo most of the fact that every Matiz was Euro-II complaint –while Hyundai could offer an Euro-II version only at a higher price. Though the latter moved quickly in a damage-control exercise, the Santro did lose a bit of its sheen.

But worse for Hyundai, it-miscalculated demand for its cars. The result: when demand peaked for the Santro, it was in no position to offer the car off-the-shelf like its rivals. Buyers had to wait for three months to get a Santro after booking it. Hyundai is moving fast to sort out its capacity problem. Work will soon start on the second phase of its Sriperumbudur car project, one year ahead of what was initially planned. An additional investment of $400 million will help expand capacity from 1.2 lakh cars to 2 lakh cars per annum.

BABASAB PATIL

Page 27

SHANTESHA MOTORS PVT. LTD.

That apart, the big worry for Hyundai is that other than the Santro (the Atos in Korea), it doesn't 'have any other small car in its armoury. Unlike Suzuki which is primarily a small car specialist, Hyundai can only introduce bigger cars in the Indian market either from its own product range, or those of Kia Motors, which it took over last year.

And the car maker is planning to do precisely that. Over the next two years, It plans to offer the Sonata, priced at around Rs "12 lakh, m the segment above the Astra/Lancer/City category. 'The Sonata is a niche product. We hope to sell about 250 cars a month," says Gandhi. Also, Hyundai will be launching a sports utility vehicle (SUV), currently under development in Korea.

Hyundai is looking a bit vulnerable now because globally it is a minnow in the car market. St lacks the sheer money power and product muscle to keep fighting the Fords and Telco in any market. And if Ford does take over Daewoo Motors, Hyundai's number two position in India could be seriously under threat.

Telco: The Home-Grown Challenger When it first announced its plans,' scepticism abounded. With dozens of global car makers hitting the Indian market with new products, few people would have given Telco much of a chance with an indigenously-developed car. Especially since Telco did not boast a great reputation for developing even world-class commercial vehicles, forget passenger cars.

BABASAB PATIL

Page 28

SHANTESHA MOTORS PVT. LTD.
When the Indica hit the market, the consensus opinion was that Telco had goofed up again. It had got its car and engine developed abroad - but all that was marred by the production quality of the cars when they rolled out of the Telco plant in Pune. The Indica was riddled with quality problems. A year down the line, almost everyone grudgingly admits that the Indica has been a success. The Telco formula of pushing the biggest small car with a rugged diesel engine has been a major hit in the semi-urban and rural markets. Rajesv Dube, general manager, commercial (passenger cars), Telco, points out the company's biggest advantage: low costs, fin other words, Telco can recover the costs of introducing a new car at a much lower volume of sales than its rivals can. But the flip side is that all global giants can amortise the costs of development by selling the same car across different world markets, Telco can't. At the moment though, the Telco strategy is to tap the niches first. The Indica, with the diesel engines being pushed hard, was clearly aimed at a segment none of the rivals was addressing. Similarly, the new car Magna it is planning to launch is again expected to be a niche car addressing a particular need \n the Rs 12-16 lakh car segment. And in the SUV market, Telco has already introduced the premium Safari, which again focuses on a small niche. It is a smart strategy as it avoids taking any of the big guns head on. But in the long run, Telco knows it has to take on its rivals in the mainstream markets as well. It is ramping up capacity to 160,000 from the current 120,000 cars anticipating that it will get the demand. But Telco is also the weakest player in the small car market - and unless it keeps springing surprises,it could be the first casualty in this round of the car battles.

BABASAB PATIL

Page 29

SHANTESHA MOTORS PVT. LTD.
Fiat India Ltd: Fiat the Auto Titan was established in 1899 by Giovanni Agnelli. The company first set its foot on the Indian Turf in the year 1905, with the appointment of Mumbay Motor Cars Agency as its Sales Agent. The relationship with India was further strengthened when it

signed a licence and servicing contract with Premier Automobiles Limited (PAL), paving the way for manufacturing and selling of 1100 and 1100D Fiat, Padmini, Uno and the

latest offering being the cars from the project "178 World Car" range which includes Siena, Siena Weekend and the Palio.

The company’s pivotal interest remains automobiles. It has the most admired and sought after models worldwide to boast of which includes Fiat Lancia, Ferrari, Maserati, Alfa Romeo etc., Siena being the latest offering to the Indian consumers.

Fiat is the only automobile manufacturer to have won the most coveted "EUROPEAN CAR OF THE YEAR" award for a record nine times, more than any other car manufacturer. These awards have not made the group complacent as it strives to achieve the best in all aspects, which include the people, environment, technology and energy.This is seen in the company’s endure towards Environmental issues and co-operation with all environmental organizations.

Fiat has ambitious plans for making India its operational hub and plans to invest one billion US dollars in the coming years.

BABASAB PATIL

Page 30

SHANTESHA MOTORS PVT. LTD.

Later the company introduced the Uno — Europe’s favourite car for the last two decades into India. The Fiat 178 World Car Project has been developed specifically to expand production in overseas markets. This project includes international-class cars like the Siena sedan, the Siena Weekend station wagon and the Palio hatchback. Fiat has achieved a high level of localization for all its cars, and is making world-class cars available in India at even more competitive and affordable prices. Fiat Automobiles

SpA owns the most-admired and sought-after models worldwide, including the Fiat Lancia, the Ferrari, the Maserati and the Alfa Romeo. Fiat is the only automobile manufacturer in the world that has won the coveted European Car of the Year award nine times. It is also the only company in the world that manufacturers recyclable cars.

In the pipeline are ambitious plans to make India its operational hub in Asia in the future and invest US $1 billion here in the coming years.

BABASAB PATIL

Page 31

SHANTESHA MOTORS PVT. LTD.
SHANTESHAMOTORSPVT.LTD.
INTRODUCTION:

SHANTESHA MOTORS PRIV A TE LIMITED is an authorized dealer for Maruti Udyog Ltd, for Marketing, Sales, Maruti Genuine Spares, Maruti Genuine Accessories, Service and Repairs of Maruti range of vehicles.

HISTORY:

Shantesha Motors commenced operations on 20/5/2000 in Belgaum and is one of the good authorized dealers for Maruti Udyog Ltd. Today they have turn over of20 crores, hence making them one of the Maruti dealer in India. Shantesha Motors have the excellent network of sales and services center in Belgaum and they are leading Maruti dealers in north Karnataka. At Belgaum Shantesha showroom is located near to K.L.E Hospital. The workshop located at Nehru Nagar. carries out after sales operations, free service, paid service and Running repairs. Besides this the workshop also in to selling of pre-owned cars and Ranks First for the sale of pre-owned

BABASAB PATIL

Page 32

SHANTESHA MOTORS PVT. LTD. cars in India. The stockyards situated at attach to showroom carries the pre-delivery inspection of all the vehicles and gets them ready for
.

the sales. It has paved surface

stocking area of about 50 to 100 Maruti vehicles.

Quality Management System:

Shantesha Motors has a documented and established quality management system

to ensure that

The documentation structure of Shantesha Motors can be represented in the

following manner.

1. QULITY MANUAL 2. QULITY SYSTEM PROCEDURES 3. WORK INSTRUCTIONS AND CHECKLIST 4. FORMS AND RECORDS 5. REFERENCE STANDARDS AND EXTERNAL MANUAL

The quality manual describes the ISO 9001: 2000 standards adapted at Shantesha Motors.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.  The quality management system procedure manual SM/BGM/PM/O 1 contents the

detail of how the processes in the organization are being conducted, control and recorded and meet the customer demands

The work instructions and checklist contains how the specified activities are to be

carried out.  The forms and records support the activities carried out and controlled.  All the external manuals and standards are controlled.

Management Commitment:

The management of Shantesha is committed to quality management system through leadership and actions. The management shall provides the basic infrastructure and continually upgrade the work environment.

The management is also committed to  The quality policy and quality objective of organization.  Ensures that the policy is understood, implemented and maintained at all the levels

of the organization  Ensure focus on the customer requirement throughout the organization.  Ensure availability of necessary resources.  Review the established quality management system periodically through the management reviews.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. Customer Focus at Sales:

The Field executives visit the customers and explain the features of the vehicle to them  Demonstration and test drives shall be given whenever required.  The Performa invoice/price list terms and conditions will be given.

The order booking forms duly collected from the customer and clarity with regard

to the terms and conditions are explained and the copy id handed over to customer along with the receipt or payment made.  Any amendment required by the customer, it should be recorded on the order

booking forms  The delivery is insured as per the checklist duly explaining all the features mentioned in the checklist.

Customer Focus at Service:

a) The customer can book the vehicle for the servicing/repairs either through the telephone or personally the front office. b) The detail shall be entered in 'booking register' by the telephone operator. c) The list of the vehicles shall be given to front office ~very morning to accept the vehicles for servicing for that date.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. d) The customer can bring their vehicle for servicing without booking. However such vehicle shall be accepted only after ensuring that there is enough capacity for the booked vehicles. e) On the bases of kilometers run by the vehicle and customer requirement, the customer shall explained about the type of the servicing/repairs and spare parts required and to ensure that the service station has the required capacity to accept the vehicle.

f) Before accepting the vehicle, a mutually acceptable delivery time and date is fixed with the customer. g) The customer's consent shall be taken on the estimated cost of the repair/service of the vehicle. h) All the details of the work required along with the date and time of the delivery and the established cost shall be recorded in the job order card before commencement of the work. i) Incase of any change in the terms any change in the services, the cost or the delivery time then the client shall be informed verbally over the phone and any change shall be recorded in the Job Order Card.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. Quality Policy:

 The management of Shantesha Motors shall always remain committed to its objectives for quality for with the main thrust on meeting the customer expectation and requirements.  policy. The management's commitment to quality reflected in its quality

"We at Shantesha pledged to make quality a way of life through commitment to continual improvement customer satisfaction and adhering to quality management system"

The management ensure that the policy is understood implemented and maintained at all levels of the organization and continual improvement in customer satisfaction.

At present our quality objectives are

We ensure that customer complaints do not exceed 8 per 10,000

vehicles.  We ensure that repeat job do not exceed 2 %  cards. We ensure CSI of90% with minimum of 15% feed back

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.  cards.  We ensure to conduct 3 free emission/service check camps per quarter.  month.  We ensure to conduct 4 internal audits and 4 MRM's per financial year of quality management system. We ensure to launch I incentive scheme per We ensure SSI of80% at sales with minimum of20% feedback

QUALITY MANAGEMENT SYSTEM PLANNING

The quality plan at Shantesha Motors comprises the identification of the following.

The various models of vehicles from Maruti Udyog Ltd sold and serviced at Shantesha Motors.  The various types of services done at Shantesha Motors.

The external manual acquired from Maruti Udyog Ltd to sell and service the

vehicles.

The various models of vehicles from Maruti Udyog Ltd. Sold and serviced at Shantesha Motors.  Maruti-800 car  Maruti omni

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

 Zen
 Alto  Wagon-R  Esteem  Versa  Baleno  Vitara  Swift The various types of servicing done at Shantesha Motors.

Services-Free service and paid service.  Running repair.

Quick service repair.  Break down service.

The external manuals acquired from Maruti Udyog Ltd. To sell and service the vehicles.  Sales policy bulletin

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.  Marketing circulars  Service manuals  Service circulars  Service bulletin  Warranty bulletin   Spares parts price catalogue Spares parts price list

 Spare parts procedure manuals
 bulletin  Spare parts Spare parts

circulars  Maruti service quality standards  Customer care manual  Service marketing manual.

Competence Awareness and Training:

a) Recruitment is done as per MUL norms of education and experience.

b) There exists well-defined system to identify and provide training to all the personnel

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. procedure No. SM/BGM/PR/12. c) Induction training and on job training shall be provided d) All concerned shall be trained on the latest sales/service/spares/bulletins/circulars from MUL. e) As per the MUL scheduled training programme Executives/Mechanics/Manager will be d,eputed for training. f) Training records shall

maintain.

Identification and Tracebility:

Identification:

1. New vehicle, which has completed pre-delivery inspection, shall be identified as PDIOK on the windshield, MUL Invoice and job order card, PDI and stockyard egister. 2. Identification of vehicles at the service workshop shall be through vehicle model, registration number and unique job order Nos. 3. Inspection and test status of service/repair of vehicles shall be identified through the job order card. 4. Completed job order card and the stamp of the final inspector shall identify Final OK vehicles.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. 5. Identification of spare parts shall be in the form of part Nos., as per Maruti guidelines. 6. Identification of new vehicles is by its colour, model, chassis and engine Nos., MUL Invoice, stockyard register.

Traceability:

1. Traceability shall be established though vehicle registration No. Job order number and the date of job order. 2. Traceability of new vehicle at stockyard is established through chassis and engine No, keyno., and parking slot No.

Monitoring and Measurement:

Customer Satisfaction:

1. Feedback received from the customer on their perception and service experience customer satisfaction measure (percentage) is generated using software supplied by Maruti Udyog Ltd. 2. Results of customer satisfaction measure are discussed in the management review meetings and counter measure for the continual improvement is initiated.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

Internal Audit:

There is a well-defined procedure No.: SM/BGM/04 to conduct internal audit and examine the implementation of Quality Management System.

Monitoring and Measurement of Processes:

1. Pre-sales process is monitored and measured by the number of enquires and the closure of sales. 2. Sales process is monitored customer personal docket checklist, commitment and delivery, SSI%. 3. In service, repeat jobs, customer complaints, feedback card %, CSI%, PSF%, final inspection are monitored. 4. Statistical graphs are used to indicate the measures.

Improvement Continual Improvement
Shantesha Motors, Belgaum shall continually improve the effectiveness of the Quality management System through commitment to Quality policy, Quality objectives as well as

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. use of audit results, management review meeting decisions, analysis of data, corrective and preventive actions.

Corrective Action:
There is a documented system procedure No. SM/BGM/PR/05 to implement corrective action on all the non-conformities arising from:  Customer complaints  Repeat Jobs  System Non Compliances  Post Service Follow Ups

Post Sales Follow ups
 CSI negative feedback  SSI negative feedback  Road test  Final inspection  Internal Audit findings  Supervision by supervisor\ Work Managers  External Audits.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

Preventive Action
There is a documented System Procedure No.SM/BGM/PR/06 to identify potential Non-Conformities like recurring Non-Conformities determined from Repeat job, Final Inspection, washing Quality as well as for potential Non-Conformities determined during MRM, Meetings and Audits and Analysis of Customer Feedback.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

ORGANIZATION STRUCTURE OF SHANTESHA MOTORS PVT LTD. Showroom and stockyard:

Chief Officer Management G.M.(Sales) Representative

Executive

G.M.(Works) Sr. Exe (Mgr Admn)

Asst. Mgr (Mktg)

Sr. General Manager (Operations ) Sr. Exe Dy. Mgr Dy. Mgr (pre-Del) (System) (Sales) Pre-del & Delivery Executive

Field Executives

Sr. Exe (System)

Sales Executive

Dy. Mgr (Sales)

Dy. Mgr (Sales)

Stockyard Asst

Asst. Supervisor

Washing BABASAB PATIL

Mechanic

System Operator

SHANTESHA MOTORS PVT. LTD.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

SAMPLING Selection of Sample:
Sampling allows us to concentrate our attention upon relatively small number of people and hence devote more energy to ensure that the information collected from them accurate. POPULATION: People from the city of Belgaum SAMPLE FRAME: People who has own a four-wheeler car and prospect Buyers. SAMPLING SIZE: 100 UNIT DURATION: 60 DAYS SAMPLE METHOD: Specifically stratified Random sampling method i.e. the whole Belgaum city was divided into four major geographical Segments i.e. Bagynagar segment, Bogarways segment, Chidamber nagar and J.N.M.C.segment.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. RESEARCH DESIGN DEFINITION OF RESEARCH PROBLEM: 1. Management problem classification:

In Indian car industry, small car segments have played a very crucial and significant role due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into Indian markets the pace of competition has hiked. This has brought into market numbers of brands and their variants competing with each other. Hence in the meeting with sales manager and service manager, a research project was discussed where both the managers wanted to analyze the buying behaviour and the brand preferred by the customers in B-segment cars.

2. Situation analysis: The Maruti Udyog Ltd has two types of service stations. i) ii) Authorized dealer with service station. Authorized service stations.

Shantesha Motors private Ltd. Comes under the first category i.e., authorized dealer with service station but before Shantesha Motors there were two service station namely Achal and Bharat. And also other local service stations.
3 .Model development:

The study will provide solutions to the problem of the management.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. a) Management will know the most preferred brand by the customers. b)Management will know the buying behaviour of the customers. 4. Specification of information required: a) To know the features considered by the customer while purchasing a car. b) To know the facilities/services expected by the customers from the dealer of service station. c) To know the means of Finance preferred by the customers. . DATA COLLECION APPROACH : The information necessary for this survey is collected by tapping primary and secondary data. Primary data: a)Questionnaire b)Personal interaction

Secondary data: a) Related information from internet: . b) Organization Report

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

MEASURMENT TECHNIQUES : The measurement technique used for this project are Questionnaires and attitude scales. SELECTION OF SAMPLE : Sampling allows us to concentrate our attention upon relatively small number of people and hence devote more energy to ensure that the information collected from them accurate. POPULATION: People from the city of Belgaum SAMPLE FRAME: People who has own a four-wheeler car and prospect Buyers. SAMPLING SIZE: 100 UNIT DURATION: 60 DAYS SAMPLE METHOD: Specifically stratified Random sampling method i.e. the whole Belgaum city was divided into four major geographical Segments i.e. Bagynagar segment, Bogarways segment ,Chidamber nagar and J.N.M.C.segment. SELECT THE METHOD OF ANALYSIS: Data are useful only after analysis. Data analysis involves Converting a series recorded observations into descriptive statements and information about relationship. Hence concerned to this project method of analysis the data will be graphical method,Simple Percentage method.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

ETHICS OF THE RESEARCH: This will be note that the issues relating to the research will be review that all the aspects will be certain and ethically sound. The information will be used for academic purpose as well as the benefit of the organization.

DATA COLLECION METHOD: The information necessary for this survey is collected by tapping primary and secondary data. Primary data: a)Questionnaire b) Personal interaction

Secondary data: a) Related information from internet. . b) Organization Report. MEASURING TOOLS: Data are useful only after analysis. Data analysis involves Converting a series recorded observations into descriptive statements and information about relationship. Hence concerned to this project method of analysis the data will be graphical method, Simple Percentage method.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. ANALYSIS 1. Please rank the following features when you buy a new car. a) Look/ Aesthetics Rank 1 2 3 4 5 6 7 8 9 No. of respondent 4 16 8 40 4 4 12 12 Percentage 4 16 8 40 4 4 12 12
Look.

9 12% 8 12% 7 0% 6 4% 5 4%

1 4%

2 16%

1 2 3 3 8% 4 5 6 7 8 9

4 40%

The above graph shows rank wise percentage of customer’s preference for Look. It shows that Look is not their first preference, 40% of the respondents have given 4th rank for Look whereas only 4% have given 1st rank for the look.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. b) Price: Rank 1 2 3 4 5 6 7 8 9 No. of respondent 12 60 8 8 8 4 Percentage 4 16 8 8 8 4 Price 9 0% 7 6 5 8% 4 0% 8% 3 8% 8 4% 1 12%

1 2 3 4 5 6 7 8 9

2 60%

The above graph shows rank wise percentage of customer’s preference for Price. It shows that Price is their second preference,60% of the respondents have given 2nd rank for Price, whereas only 12% have given 1st rank for the Price.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. c) Mileage Rank 1 2 3 4 5 6 7 8 9 No. of respondent 68 8 12 4 8 Percentage 68 8 12 4 8 Mileage.

5 4 8% 4% 3 12%

9 8 7 6 0% 1 2 3 4 5 6 1 68% 7 8 9

2 8%

The above graph shows rank wise percentage of customer’s preference for Mileage. It shows that Mileage is their First preference i.e. 68% of the respondents have given 1st rank for Mileage.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

d) Maintenance Rank 1 2 3 4 5 6 7 8 9 No. of respondent 4 56 16 4 8 8 4 Percentage 4 56 16 4 8 8 4
Maintenance. 8 8% 7 0% 6 8% 5 4% 9 4% 1 4% 2 0% 1 2 3 4 5 6 4 16% 3 56% 7 8 9

The above graph shows rank wise percentage of customer’s preference for Maintenance. It shows that Maintenance is not their First preference, 56% of the respondents have given 3rd rank for Maintenance, whereas only 4% have given 1st rank for the Maintenance.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

e) Safety features Rank 1 2 3 4 5 6 7 8 9 No. of respondent 8 12 4 12 16 36 4 4 4 Percentage 8 12 4 12 16 36 4 4 4
Safety features.

8 4% 7 4%

9 4%

1 8% 2 12% 3 4% 1 2 3 4 5 6 7 8 5 16% 9

6 36%

4 12%

The above graph shows rank wise percentage of customer’s preference for Safety features. It shows that Safety is not their First preference, 36% of the respondents have given 6th rank for safety, whereas only 8% have given 1st rank for the safety features.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. f) Company’s service: Rank 1 2 3 4 5 6 7 8 9 No. of respondent 12 12 12 16 44 4 Percentage 12 12 12 16 44 4

Company's service.

3 2 1 9 0% 4%

4 12% 5 12%

1 2 3 4 5 6 12% 6 7 8 9

8 44%

7 16%

The above graph shows rank wise percentage of customer’s preference for company service. It shows that company service is not their First preference, 44% of the respondents have given 8th rank for company service, whereas no one has given 1st rank for the company service.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. g) Space: Rank 1 2 3 4 5 6 7 8 9 No. of respondent 4 40 8 4 12 32 Percentage 4 40 8 4 12 32
Space.

2 1 3 4 0% 0% 4% 9 32% 5 40% 1 2 3 4 5 6 7 8 12% 8 9 7 4% 6 8%

The above graph shows rank wise percentage of customer’s preference for Space. It shows that Space is not their First preference, 40% of the respondents have given 5th rank for safety , whereas no one has given 1st rank for the safety features.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

h) Ready availability: Rank 1 2 3 4 5 6 7 8 9 No. of respondent 4 40 8 4 12 32 Percentage 4 40 8 4 12 32
Ready availability.

2 1 3 4 0% 0% 4% 9 32% 5 40% 1 2 3 4 5 6 7 8 12% 8 9 7 4% 6 8%

The above graph shows rank wise percentage of customer’s preference for Ready availability. It shows that Ready availability is not their First preference, 40% of the respondents have given 5th rank for Ready availability, whereas no one has given 1st rank for the Ready availability.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

i) Comfort: Rank 1 2 3 4 5 6 7 8 9 No. of respondent 4 4 4 4 8 20 16 4 36 Percentage 4 4 4 4 8 20 16 4 36
Comfort. 2 4% 1 4% 9 36% 3 4% 4 4% 5 8% 1 2 3 4 5 6 6 20% 7 16% 7 8 9

8 4%

The above graph shows rank wise percentage of customer’s preference for Comfort. It shows that Comfort is not their First preference, 36% of the respondents have given 9th rank for Comfort, whereas only 4% have given 1strank for Comfort.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. 2) What is your budget for a new car? Purchasing respondent < 3L 3-4L 4-5L power of the Number of Respondent respondent Percentage 20 20% 64 64% 16 16% in

Purchasing power of the Customers

16%

20%

< 3L 3-4L 4-5L

64%

 The above graph shows that 20% of respondents are willing to spend less than 3 Lakh rupees, 64% of respondents are willing to spend between 3-4 Lakh rupees and 16% of respondents are willing to spend between 4-5 Lakh rupees.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. 3) Which of the following facilities/ services do you except from the dealer?
Facilities / Services Quick service 1 Yr Free service Discount on Accessories Home Delivery Discount on Spare Parts Installment Payment Facility Discount on Stereo System Vehicle Registration Process No. Of Respondents 84 76 12 8 24 72 8 12

Facilities Expected By Customers

8 72

12 84

Quick service 1 Yr Free service Discount on Accessories Home Delivery Discount on Spare Parts Installment Payment Facility

24

8 12

76

Discount on Stereo System Vehicle Registration Process

 According to customer preference quick service, 1 Yr Free service and installment payment facility are considered to be the most important facility / services from the dealer / service station.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

4) Which means of Finance would you prefer?
No. OfRespondent Respondents in percentage 16 64 12 8 16% 64% 12% 8%

Means of Finance
Employee Loan Bank Loan Car Finance Companies Co-operative Society

Means of Finance
70% 60% 50% 40% 30% 20% 10% 0% Employee Loan Bank Loan Car Finance Companies Co-operative Society

 It is found from the survey that 64% of the respondents prefer bank loan as the means on finance followed by employee loan, car finance companies, and cooperative society.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

5) Rank the following in the order of preference: a) Maruti DLX: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 4 4 12 16 60 Percentage 4 4 4 12 16 60
Maruti DLX.

1 2 4% 4% 3 4 5 4% 0% 6 12% 8 7 0% 10 60% 9 16%

1 2 3 4 5 6 7 8 9 10

The above graph shows rank wise percentage of customer’s preference for Maruti DLX car. It shows that Maruti DLX car is not their First preference, 60% of the respondents have given 10th rank for Maruti DLX, whereas only 4% have given 1st rank for Maruti DLX.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

b) Maruti Zen: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 4 12 4 12 4 4 8 48 Percentage 4 4 12 4 12 4 4 8 48 Maruti Zen.

10 1 2 0% 4% 4% 3 12% 4 4% 5 12% 6 4% 8 8% 7 4%

1 2 3 4 5 6 7 8 9 10

9 48%

The above graph shows rank wise percentage of customer’s preference for Maruti Zen car. It shows that Maruti Zen car is not their First preference, 48% of the respondents have given 9th rank for Maruti Zen, where as only 4% have given 1st rank for Maruti Zen.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

c) Maruti Alto: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 64 8 4 8 4 8 4 Percentage 64 8 4 8 4 8 4 8 Maruti Alto. 0% 9 0% 10 0% 1 2 3 4 5 6 1 64% 7 8 9 10 7 4% 6 8%

5 4% 4 8% 3 4% 2 8%

The above graph shows rank wise percentage of customer’s preference for Maruti Alto car. It shows that Maruti Alto car is their First preference i.e. 64% of the respondents has given 1st rank for Maruti Alto.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

d) Maruti Swift: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 8 64 8 4 4 8 Percentage 4 8 64 8 4 4 8 Maruti Swift

8 7 6 8% 0% 5 4% 4% 4 8%

10 1 9 0% 4%

2 8%

1 2 3 4 5 6 7 8 9

3 64%

10

The above graph shows rank wise percentage of customer’s preference for Maruti SWIFT car. It shows that Maruti SWIFT car is not their First preference, 64% of the respondents have given 3rd rank for Maruti SWIFT, where as only 4% has given 1st rank for the Maruti SWIFT.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

e) Maruti WagonR: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 8 8 4 56 8 8 4 Percentage 4 8 8 4 56 8 8 4
WagonR
10 4% 9 8% 8 8%

1 2 3 0% 0% 4 4% 8% 5 8% 6 4%

1 2 3 4 5 6 7 8 9

7 56%

10

The above graph shows rank wise percentage of customer’s preference for Maruti WagonR car. It shows that Maruti WagonR car is not their First preference, 56% of the respondents have given 7th rank for Maruti WagonR, whereas no one has given 1st rank for Maruti WagonR. f) Fiat Palio

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 12 4 4 4 48 8 4 4 12 Percentage 12 4 4 4 48 8 4 4 12

Fiat Palio.
2 0% 9 4% 8 4% 7 8% 10 12% 1 12% 3 4% 4 4% 5 4% 1 2 3 4 5 6 7 8 9 6 48% 10

The above graph shows rank wise percentage of customer’s preference for Fiat Palio car. It shows that Fiat Palio is not their first preference, 48% of the respondents have given 6th rank for Fiat Palio, where as only 12% of the respondents have given 1 st rank for Fiat Palio.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

h) Hyundai Santro: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 44 8 4 12 8 4 8 8 Percentage 4 44 8 4 12 8 4 8 8 Hyundai Santro.
10 0% 1 4% 1 2 3 4 2 44% 5 6 7 5 12% 4 4% 3 8% 8 9 10

8 8% 7 4% 6 8%

9 8%

The above graph shows rank wise percentage of customer’s preference for Hyundai Santro car. It shows that Hyundai Santro is not their First preference, 44% of the respondents have given 2nd rank for Hyundai Santro whereas only 4% of the respondents have given 1st rank for Hyundai Santro.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

i) Hyundai Getz: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 12 40 12 8 12 8 4 Percentage 4 12 40 12 8 12 8 4
Hyundai Getz.

9 8% 8 12%

10 1 4% 4%

2 12% 3 0%

1 2 3 4 5 6 7 8

7 8% 6 0% 4 40%

5 12%

9 10

The above graph shows rank wise percentage of customer’s preference for Hyundai Getz car. It shows that Hyundai Getz is not their First preference, 40% of the respondents have given 4th rank for Hyundai Getz whereas only 4% of the respondents have given 1st rank for Hyundai Getz.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

j) Tata Indica: Rank 1 2 3 4 5 6 7 8 9 10 No. of respondent 4 12 4 16 40 4 4 4 12 Percentage 4 12 4 16 40 4 4 4 12
10 12% 9 0% 8 4% 7 4% 6 4% 1 4% 2 12% 3 4% 1 2 3 4 5 4 16% 6 7 8 9 5 40% 10

Tata Indica.

The above graph shows rank wise percentage of customer’s preference for Tata Indica car. It shows that Tata Indica is not their First preference, 40% of the respondents have given 5th rank for Tata Indica whereas only 4% of the respondents have given 1st rank for Tata Indica.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. 6) Do you own a car? Response Yes No No. of Respondent 68 32 Respondents in % 68% 32%

Do you own a car?
80 70 60 Percentage 50 40 30 20 10 0 Yes No Yes 32 No 68

 The above graph shows that 68% of the respondents are owners of cars and 32% of respondent have not owned car but are prospect buyers.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. 7) Why do you opt for a four wheeler?
Purpose Need Comfort / Convenience Status Respondent 4 52 12

Purpose for owning a car?

60 50 40 30 20 10 0 4 Need

52

Percentage

Respondent 12

Comfort / Convenience

Status

 It is found from the survey that 52% of the respondent opt four-wheeler for the comfort / convenience but not for need & status.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

8) How did you get to know about this car?
Awareness TV Advertisement Magazines / Newspaper Friends Existing Customers Car Finance Companies No. of respondent 26 7 22 9 4 Percentage 38.24 10.29 32.35 13.24 5.88

How did you get to know about this car?
45 40 35 30 25 20 15 10 5 0 38.24

32.35 13.24 5.88 No. of respondent

Percentage

10.29

Magazines / Newspaper

TV Advertisement

 The above graph shows that 38.24% of the respondents came to know about this car through TV advertisement and 32.35% of the respondents came to know about the car through friends.

BABASAB PATIL

Car Finance Companies

Friends

Existing Customers

SHANTESHA MOTORS PVT. LTD. 11) Please tick the following attributes of your car a) Price Expensive Reasonable Respondents 25 43 PRICE
70 60 50 Percentage 40 30 20 10 0 Respondents 36.76 Expensive Reasonable 63.24

Percentage 36.76 63.24

From the above graph it is clear that 63.24% of the respondents feel that the car which they own is expensive and 36.76% feel that the price of the car which they own is reasonable.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. b) Style/Aesthetics Stylish Simple

Respondents 51 17

Percentage 75 25

S T YL E / AE S T H E T IC S
80 70 60 Percentage 50 40 30 20 10 0 Re sponde nts 25.00 S tylis h S im ple 75.00

From the above graph it is clear that 75% of the respondents feel that the car which they own is stylish and 25% feel that the car which they own is simple.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. c) Comfort More comfortable Less comfortable Respondents 56 12 Percentage 82.35 17.65

COMFORT
90 80 70 60 Percentage 50 40 30 20 10 0 Respondents 17.65 More comfortable Less comfortable 82.35

From the above graph it is clear that 82.35% of the respondents feel that the car which they own is comfortable and 17.65% feel that the car which they own is less comfortable.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. d) Maintenance Expensive Reasonable Respondents 49 19 Percentage 72.06 27.94

MAINTENANCE
80 70 60 Percentage 50 40 30 20 10 0 Respondents 27.94 Expensive Reasonable 72.06

From the above graph it is clear that 72.06% of the respondents feel that the maintenance cost of the car which they own is expensive and 27.94% feel that the maintenance cost of the car which they own is reasonable.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. e) Fuel efficiency Satisfactory Not satisfactory Respondents 44 24 Percentage 64.71 35.29

FUEL EFFICIENCY
70 60 50 Percentage 40 30 20 10 0 Respondents 35.29 Satisfactory Not satisfactory 64.71

From the above graph it is clear that 64.71% of the respondents feel that the fuel efficiency of the car which they own is satisfactory and 35.29% feel that the fuel efficiency of the car which they own is not satisfactory.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

APPENDIX
QUESTIONNAIRE Please tell us about yourself Name:_______________________________________________ Age:_________________________________________________ Sex:_________________________________________________ Occupation:___________________________________________ 1. Please rank the following features when you buy a new car. (Starting from 1 to 9, 1 for the most preferred and 9 for the least preferred) Look/Aesthetics Price Mileage Maintenance Safety Features Company Service Space Ready Availability Comfort [] [] [] [] [ | [] [] [] []

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

2. What is your budget for a new car? < 3 Lakh [ ] 3-4 Lakh [ ] 4-5 Lakh [ ]

3. Which of the following Facilities/Services do you expect from the dealer? Quick Service Discount on Accessories Discount on Spare Parts [j [] [] 1 year free Insurance Home Delivery [] []

Installment Payment Facility [ ] Vehicle Registration Process [ ]

Discount on Stereo System [ ]

4. Which means of Finance would you prefer? Employee Loan [] Bank Loan []

Car Finance Companies [ ]

Co-operative Society [ ]

If any other Specify______________________________________________

5. Rank the following in the order of preference. (Starting from 1 to 10, 1 for the most preferred and 10 for the least preferred) Maruti DLX Zen Alto Swift Wagon-R FiatUno [] [] [] [] [] []

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. Fiat Palio []

Hyundai Santro [ ] Hyundai Getz Tata Indica [] []

Why do you rank the particular car as NO. 1?

6. Do you own a Car? Yes [ ] No [ ]

(If No, skip the below Questions) 7. Why do you opt for a four-wheeler? Need [ ] Comfort/Convenience [ ] Status [ ]

8. Do you find any difficulties in your Car? Yes [ ] No [ ] Spare Parts [ ] Space []

If yes, what are they? Mileage [] Company Services [ ] Maintenance [ ] Comfort [] Service Safety [] []

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

9. Name and dealer of your Previous and Presently Owned Car. Name of the Car: Previous 1____________ 2____________ Present __________

Name of the dealer: Previous 1____________ 2 ____________ Present ___________

10. How did you get to know about this Car?(Tick any one). T.V advertisement Friends [] [] Magazines/Newspaper [ ] Existing Customers []

Car Finance Companies [ ]

Any other please specify_____________________

11.Please tick the following attributes of your car. a. Price: Expensive b. Style/Aesthetics: Stylish [] [] Reasonable Simple Less comfortable Reasonable Not-satisfactory [] [] [] [] []

c. Comfort: More comfortable [ ] d. Maintenance: Expensive []

e. Fuel Efficiency: Satisfactory [ ]

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

12. Given a Second chance which car would you buy from the same budget?

13. Please suggest any areas for improvement in your car dealer.

Thank you for your Co-operation.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. FINDINGS

 According to survey it is found that 68% of respondents Prefer Mileage as the first most crucial feature considered while purchasing a car,and price is considered as the second considerable feature i.e 60% and maintenance cost is considered as the third considerable feature while purchasing a car i.e 56%.  It is found from the survey that 64% of the respondents are willing to pay 3-4 lakh for a new car,20% of the respondents are willing to pay less than 3 lakh for a new car, and 16% of the respondent are willing to pay 4-5 lakh rupees for a new car.  It is found that 84% of the respondent prefer Quick service as the most preferred facilities\services facility i.e72%  It is found that 64% of the respondent prefer Bank loan as the most preferred means of finance.  Maruti Alto stood first as the most preferred car among the B-segment cars followed by Hyundai Santro and Maruti DLX stood last.  It is found from the survey that 68% of the respondents are owners of Bsegment cars.  It is found that 52% of customers opted car for comfort /convince rather than need and status.  It is found that 38.24% of the respondents came to know about the car through T.V advertisements and 32.35% of the respondents came to know about the car through friends.. expected from the dealer and the next preferred facilities/services are one year free service i.e76% and Installment payment

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. SUGGESTION  It is found that in this segment the important features considered by the customers while buying a car are mileage, price & maintenance. So manufacturer has to consider these aspects to attract and retain customers thus making an effort to build a good brand image.  Discount on accessories and spare parts also act as influencing factors for purchase decision. So dealer can give discounts on spare parts and accessories, after sales for a period of a year or two to stimulate the customers.  Customers want service at their doorsteps but are unaware of the home delivery facility provided by the dealers. So a measure has to be taken to create awareness in this direction.  Most of the customers buy cars from bank loan rather than financial companies. So the companies have to come up with attractive loan facilities to their customers.  Word of mouth is effective media of communication. Hence the dealer should keep the existing customers happy by providing good service and make customers talk good about their service provided. CONCLUSION Belgaum although a small city, is dwelled by middle and higher-class people in majority. Thus the market for four-wheeler has never been a dearth here. But of all the varieties available in this segment, small cars are most preferred. Customers in this segment want to adopt change into their life style. This has fostered entry of varieties of small cars available nation-wide to flourish in this market. This has enhanced the competition in this car segment. But Maruti with stood this competition by retaining its market share to be the highest. The results of the survey conducted showed that Maruti Alto Brand is the most preferred car followed by Santro and it also showed the buying behaviour of customers

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD. that the most of the customer purchase car based on mileage followed by price and maintenance.

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

BIBLOGRAPHY

REFERANCE BOOKS: Marketing research Marketing research : Tull and Hawkins : A.Parasuraman, Dhruv Grewal and R.Krishnan.

INTERNET WEBSITES: WWW.MARUTIUDYOG.COM www.google.com

BABASAB PATIL

SHANTESHA MOTORS PVT. LTD.

BABASAB PATIL