STUDY

ON
ENTRY LEVEL SUV SEGEMENT IN
INDIA
Group 6:
ASHNA MALIK 74/2018
SANKALP SONDHI 085/2018
AYUSHI JAIN 96/2018
MAULIK JAIN 106/2018
DIVYA SACHDEVA 118/2018
VISHAL MISHRA 128/2018
Flow of Presentation

• Introduction of cars in entry level suv segement

• Information gap / info needed
• Define research objectives
• Methodology(research methodology)
• Plan and do secondary research
• Plan and do primary research
• Data analysis
• Interpretation
• Marketing action
Name Range Introduction
Maruti Brezza Rs.7.67 - 10.64 Lakh of Entry Level
Honda WRV Rs.7.84 - 10.48 Lakh SUVs in India
Mahindra XUV300 Rs.7.9 - 12.14 Lakh
Nissan Kicks Rs.9.55 - 14.65 Lakh
Price Range
Renault Duster Rs.7.99 - 12.79 Lakh
Ford EcoSport Rs.7.82 - 11.89 Lakh
Nissan Terrano Rs.10.0 - 14.65 Lakh
 Price Range
16

14

12

10

0
Maruti Brezza Honda WRV Mahindra XUV300 Nissan Kicks Renault Duster Ford EcoSport
Starting range Higher range
• NISSAN TERRANO
The Nissan Terrano has 1 Diesel Engine and 1 Petrol Engine on offer.
The Diesel engine is 1461 cc while the Petrol engine is 1598 cc. It is
available with the Manual and Automatic transmission. Depending
upon the variant and fuel type the Terrano has a mileage of 13.04 to
19.87 kmpl.

• FORD ECOSPORT
The Ford EcoSport has 2 Diesel Engine and 1 Petrol Engine on offer.
The Diesel engine is 1498 cc and 999 cc while the Petrol engine is
1497 cc. It is available with the Manual and Automatic transmission.
Depending upon the variant and fuel type the EcoSport has a mileage
of 14.8 to 23.0 kmpl.
FEATURES
• RENAULT DUSTER
The Renault Duster has 1 Diesel Engine and 1 Petrol Engine on offer.
The Diesel engine is 1461 cc while the Petrol engine is 1498 cc. It is
available with the Manual and Automatic transmission. Depending
upon the variant and fuel type the Duster has a mileage of 14.19 to
19.87 kmpl
• Nissan Kicks
The Nissan Kicks has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel engine is 1461
cc while the Petrol engine is 1498 cc. It is available with the Manual transmission. Depending
upon the variant and fuel type the Kicks has a mileage of 14.23 to 20.45 kmpl.

• Honda WRV
The Honda WRV has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel engine is 1498
cc while the Petrol engine is 1199 cc. It is available with the Manual transmission. Depending
upon the variant and fuel type the WRV has a mileage of 17.5 to 25.5 kmpl.

• Maruti Brezza
The Maruti Vitara Brezza has 1 Diesel Engine on offer. The Diesel engine is 1248 cc. It is
available with the Manual and Automatic transmission. Depending upon the variant and fuel
type the Vitara Brezza has a mileage of 24.3 kmpl

• Mahindra XUV300
The Mahindra XUV300 has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel engine is
1497 cc while the Petrol engine is 1197 cc. It is available with the Manual transmission.
Depending upon the variant and fuel type the XUV300 has a mileage of 17.0 to 20.0 kmpl.
30

25

20

15

10

0
Maruti Brezza Honda WRV Mahindra XUV300 Nissan Kicks Renault Duster Ford EcoSport Nissan Terrano
Min Mileage Max mileage
 Information required :
• Buying preferences for entry level SUV segment in Indian
consumer

• The brand recognition and recall they have for Suzuki Brezza

• The impact of current and new market entrants in the mind

space of the consumer
 Objectives
 Management Decision Problem:
How will Maruti Suzuki brezza continue to offer its unique value proposition to
customers and how will it stay relevant in the face of aggressive competition?

 Marketing Research Problem:

• Paradigm shift in car purchase patterns in India (qualitative)
• Which factors determine buying behaviour in entry level SUV segment
• Understanding the consumer perception towards brezza
 SECONDARY RESEARCH
CURRENT MARKET SCENARIO
• The surge of consumer demand for SUVs is getting stronger by the day. For the first 11
months of FY2018 (April 2017-February 2018), a total of 830,334 UVs have been sold in
India (+21.34%), accounting for 27.79 percent of the overall passenger vehicle (PV) market
which saw total sales of 2,987,259 units (+8.4%). Every fourth PV sold in the country is an
SUV and this segment is gradually eating into PV sales.
• February 2018 was a stellar month for UVs – a total of 80,254 units went home to new
owners, posting year-on-year growth of 21.82 percent and accounting for 29.14 percent of the
PV market (275,329 units). In fact, at the end of February 2018, the UV segment has already
notched its highest-ever sales in a fiscal – 830,334 – and there’s one month still to go for the
closure of FY2018. In 2016-17 a total of 761,997 UVs (+21.91%) were sold. We estimate the
UV segment to nudge the 920,000 units domestic sales mark by FY2018 and in 2018-19
drive past the 1-million units sales landmark.
• The handsome growth in the SUV market, which has come on the back of glut of new models
and changing consumer preferences, has led to substantial gains for some vehicle
manufacturers, both in terms of sales as well as market share.
The biggest contributor to Maruti’s UV sales is, of
course, the Vitara Brezza, its first compact SUV.
Between April-January 2018, the Brezza was bought by
123,615 new owners, the Ertiga MPV by 56,410 buyers,
the S-Cross sold 23,481 units and the Gypsy 7,085 units.
Add February’s UV sales of 20,324 units and you arrive
at the 11-month UV sales of 230,995. Maruti is also the
biggest volume gainer, having increased its UV sales by
53,565 units over the 11-month period under review.

SOURCE OF SECONDARY DATA

 Research Methodology

TYPE OF RESEARCH
Our research methodology was a blend of exploratory and conclusive research.
As a part of exploratory research, we conducted a pilot survey to identify the key
variables affecting the purchase decisions of the consumers towards entry level
SUV segment. We also analysed secondary data available from various sources
such as Federation of Automobile Dealers Associations (FADA) etc. After we got
the variables of interest from the pilot survey, we further gained insights from
industry experts about variables under consideration for entry level SUV segment
and through the form of questionnaire, data was collected for these variables for
conclusive research.
 SAMPLING METHOD
Samples have been collected through convenience sampling (under non
probability sampling methods) from the people who own a SUV.

SAMPLE SIZE
Sample size has been computed as follows
Standard Deviation = 0.67 (4/6)
Tolerable error = 10%
Z value at 95% Confidence interval = 1.96
Sample Size calculated = 170
For factor analysis, we collected 190 responses and for discriminant
analysis(attribute based positioning) for the objective of competitive
mapping we collected 207 responses.
 DATA COLLECTION METHOD
METHOD OF DATA ANALYSIS

Data gathered has been analysed using the SPSS software and following methods of data analysis were
used

Factor analysis helps in grouping no.of variables into factors influencing the customer buying behavior.
Factor analysis was used for finding factors influencing the customer buying behavior towards entry level
SUV segment. Total variance method of extraction was used as it is suggested for exploratory factor
analysis. PCA( Principal Component Analysis) was thus used and varimax rotation was used so that one
variable load onto one factor only.

Multi Dimensional Scaling was done using both approaches i.e Simmilarity/ Dissimilarity Based
approach and Attribute based positioning for the objective of competitive mapping . It helped us find how
consumers perceive Brezza based on various factors and where Brezza stands with respect to its
competition based on the factors thus providing conclusive findings for our research project. Attribute
based positioning was done through perceptual map using discriminant analysis and the measure of
similarity/dissimilarity based approach is taken as Euclidean distance.
SAMPLING PLAN

• Population Universe: People residing in the vicinity of Dwarka and Rohini, New
Delhi using either entry level SUV were included in this study
• Sampling Unit: It consisted of stores of SUZUKI, Honda,MAHINDRA,
Undergraduate and Post-graduation Colleges as well the people using the Metro
to commute who park their vehicles at the various parking lots in the locality of
Dwarka.
• Sampling Element: People visiting stores of Suzuki, Honda , MAHINDRA
situated near Dwarka and the people parking their vehicles in different parking
lots
MEASUREMENT AND SCALING
Itemized scale and paired comparison was used for the purpose of scaling and measurement.
Likert scale was used for the purpose of perceptual mapping which is a 5 point scale. It was
used as it is effective and convenient. Paired comparison was used for data collected under
Similarity/Dissimilarity based approach of Multi dimensional scaling.

RESEARCH INSTRUMENTS
Research Instruments include the pilot survey and questionnaire which also forms the source
of data collection for our objectives.
PRIMARY RESEARCH
• To start with, we conducted a depth interview of five interviewees to get the basic understanding of factors
which customers consider while purchasing SUVs, and particularly Brezza. On analyzing the interviews,
we got 3 broad variables, Running Cost, Price and Road Presence.
• After that, using these variables only, we conducted Pilot Survey, which gave us 14 variables, that were
more specific.
• Using these variables, we prepared a questionnaire where the respondents were supposed to rate each
variable from 1 to 7. Based on the responses, we were able to analyze the importance of each variable.
• Then we did factor analysis, by which we were able to club variables into final variables. Using these final
variables, we created a final questionnaire, where we rated Brezza with existing as well as new players in
the same segment on these final variables.
• These ratings helped us to understand the position of Brezza in the market.
 Data Analysis

• Exploratory Data Analysis

• The exploratory research helped us to understand the various factors that can
influence consumer purchase behaviour. Depth interviews were conducted at store
locations of suzuki, Honda, mahindra, both the customers and the dealers.
• The results of the exploratory research are:
• People purchased entry level /compact suvs because of their price and running
cost
• People purchased them because of SUV feel rather than a hatchback
• People considered looks and overall appeal of the car while purchasing
PILOT SURVEY Data Analysis
We then conducted a pilot survey to finally gauze the variables that actually make these variables . We
floated an online questionnaire and got responses from 50-60 people . From which we got the following
variables :

1. Price of the SUV 8. Front grill

2. Mileage 9. Size of Rims
3. Size of body kit 10. 4 Wheel Drive
4. Servicing cost
11. Projector headlamps
5. Spare part availability
12. Dual tone colors
6. Comfort
13. Availability of colors
7. Daily driving distance
14. Ground clearance
Factor analysis Analysis
After doing a factor analysis we came out with the following main attributes that influence the buying behaviour
1. Owning and running costs
2. Road presence and adventure rush
3. Exterior design and size of the car
4. New and distinctive features

Final analysis of online survey amongst 8 competing products

We then floated a questionnaire (online) from which we tried to find out the marketing position of brezza on these 4
parameters for the following 8 competing cars of this segment :

1. XUV 300
5. Brezza
2. Nissan kicks
6. Terrano
3. Honda WRV
7. Creta
4. Ecosport
8. Duster

We performed a discriminant analysis of the results .

 Reliability Test

Cronbach’s Alpha test is used to evaluate the reliability of the questionnaire:

Reliability Statistics

Cronbach's Alpha N of Items

.658 4
 SPSS analysis
FACTOR ANALYSIS

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .866

Bartlett's Test of Sphericity Approx. Chi-Square 876.812

df 91

Sig. .000
 Component

1 2 3 4
1. I bought a SUV because of its affordability.
.594 -.486
2. I consider mileage while buying SUV.
.624
3. The bulky body kit of my SUV ups my ego status.
.575
4. Low servicing cost makes a SUV very economical in the long run.
.731
5. Availability and cost of spare parts influence my purchasing decision.
.529
6. My SUV gives me a comfortable ride
-.612 .452
7. My long run consumption of SUV leaves me at a profitable/ win- win
situation. (resale value)
.631
8. I feel proud and happy with the beautiful finish of my chrome front
grill .608
9. The size of the rim gives my SUV a macho feel
-.716
10. The presence of 4 wheel drive tempts me to take it off road/ on an
adventure.
.736
11. Having dual tone colors makes it more appealing
.826
12. Projector headlamps is an innovative feature to have in an SUV
.784
13. The availability of color specific enamel gives me the freedom to
change the look of my car.
.526
14. A good level of Ground clearance ensures me safety.
.737
 Wilks' Lambda

Test of Function(s) Wilks' Chi-square df Sig.

Lambda
1 through 4 .000 3174.402 28 .000
2 through 4 .000 1848.806 18 .000
3 through 4 .007 972.789 10 .000
4 .184 333.955 4 .000

Standardized Canonical Discriminant Function Coefficients

Function

1 2 3 4
owning and running
1.392 -.017 -.194 -.093
costs(also include resale)
road presence (include off
-.919 .269 .111 1.032
road capabilities)
exterior design and size of
.003 .965 .061 -.256
SUV
new and innovative features .079 -.037 .996 .099

Functions at Group Centroids

which car did you purchase or intend to Function

purchase ? 1 2 3 4
Unstandardized canonical discriminant
1 36.163 -3.265 -2.007 -1.912
functions evaluated at group means
2 11.211 12.289 2.264 1.334
3 1.371 -17.993 8.587 .815
4 -40.538 -3.211 2.182 -1.608
5 -41.637 -2.811 -3.305 -1.423
6 -41.808 4.096 2.778 -1.993
7 -6.955 -8.038 -3.010 4.612
8 -25.392 -1.850 -12.308 .240
 On using the Wilks’ lambda table and the Standardized Canonical Discriminant Function Coefficients
table, we obtain the following perceptual map.

8.000

6.929
7.000
15.000

6.000
10.000
5.000

5.000
4.000

3.000 0.000
-50.000 -40.000 -30.000 -20.000 -10.000 0.000 10.000 20.000 30.000 40.000 50.000
2.000
-5.000
.742 1.000

-10.000
-.242 -.239
.000
-5.000 0.000 5.000 10.000 15.000 20.000 25.000
-1.000 -15.000

-20.000
INTERPRETATION

• For owning and running costs XUV 300 and Brezza are close competitors
• For road presence and adventure rush (XUV 300, Ecosport, Brezza, Duster,
Creta) (in decreasing order of ranking)
• For exterior design and size of the car (XUV 300 , Creta, Brezza, Duster,
Ecosport) (in decreasing order of ranking)
• For new and distinctive features (Kicks , Brezza , Ecosport, XUV300, Duster)
MARKEITNG ACTION

Either Brezza needs to improve with new and improved

distinctive features or road presence and exterior design .
 Annexure

.
THANK YOU