1

LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

REPORT ON CAPSTONE PROJECT

TITLE:“A comparative study on customer perception towards

product of Maruti and Hyundai”

SUBMITTED TO LOVELY PROFESSIONAL

UNIVERSITY

In partial fulfillment of the requirement for the award of

“DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION”

SUBMITTED BY: Roll no Guide name

Kuldeep tiwari 40 Abhay tiwari

Rajan chaurasia 33

Gurtinder singh 34

Parmjeet singh 44

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

(PHAGWARA)

(2010)

2

TO WHOM IT MAY CONCERN

This is certified that Kuldeep tiwari ,Rajan chaurasia , Gurtinder singh,and Parmjeet

singh have done this project of ―A comparative study on customer perception

towards product of Maruti and Hyundai‖under my guidance. During this project

they have done most efforts to study and understand the subject in detail.In addition

to the books mentioned in the bibliography they have referred various study material,

magazine, websites, newspapers and notes to complete this project. During this

project they have been very much curious and enthusiast to understand the spirit of

the expert documentation and procedures.

we wish him best of luck.

Project Guide

Mr Abhay tiwari (Sr. Lecturer),

Faculty: Lovely faculty of business and arts

3

DECLARATION

This is to certify that we are the student of department of Management, studying

in BBA ( 4th Semester), have undergone research project on title “A

comparative study on customer perception towards product of Maruti suzuki

and Hyundai”for partial fulfillment of degree of Bachelor of Business

Administration to Lovely professional University, Phagwara (PUNJAB).We

solemnly declare that the work done by us is original and no copy of it has been

submitted to any other university for award of any other degree/fellowship or a

similar title and topic.

NAME Roll. No

Rajan chaurasia Q1808B33

Gurtinder singh Q1808B34

Kuldeep tiwari Q1808B40

Parmjeet singh Q1808B44

BBA (HONS)

Specialization: Marketing

4

ACKNOWLEDGEMENT

we take this opportunity to express our acknowledgement a deep sense of

gratitude for rendering valuable assistance and guidance to us by the

following personalities for successful completion of our research project .

We are highly indebted to Mr. Abhay tiwari (Sr. Lecturer), department of

management: Lovely professional university Phagwara (PUNJAB) for

assigning us interesting task. we had been fortunate enough to have him as

a wonderful guide and for her personal encouragement, prompt assistance,

constructive criticism, valuable interest, guidance and supervision in

completing our project report successfully. .

The experience was novel one and we would like to thank all the people who

have lent there valuable time for the recording of the data and completion of

the report. Without their consideration it would have been difficult to complete

the study.

Rajan chaurasia

Gurtinder singh

Kuldeep tiwari

Parmjeet singh

5

CONTENTS

S.No Chapter Page no

1 1.Introduction to Subject

1.1 EXECUTIVE SUMMARY

1.2 INTRODUCTION TO THE TOPIC & AUTOMOTIVE INDUSTRY

1.3 AUTOMOBILE INDUSTRY &ITS HISTORY

1.4 TIME LINE OF INDIAN AUTOMOBILE INDUSTRY& ITS GROWTH

1.5 GROWTH AND MARKRT SHARE

1.6 INTRODUCTION OF MARUTI SUZUKI

1.7 INTRODUCTION TO HYUNDAI MOTORS

7-19

2. Review of literature , 20-22

3 Need, Objective, Scope & Methodology 23-24

4 Data analysis and interpretation 25-30

5 Conclusion, Limitations & Recommendations 31-32

6 References and Bibliography 33-35

7 Appendix (Questionnaire) 36-37

6

LIST OF FIGURES

SERIAL NO FIGURE PAGE NO

1 4.1 ownership chart 25

2 4.2 consumer preferences 27

3 4.3 sources of information chart 28

4 4.4 dimension graph 30

5 4.5 perception graph 31

7

EXECUTIVE SUMMARY

The automotive industry designs, develops, manufactures, markets, and sells the

world's motor vehicles. In 2009, more than 70 million motor vehicles, including cars

and commercial vehicles were produced worldwide. In 2008, a total of 71.9 million

new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-

Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in

the Middle East and 1.4 million in Africa.The markets in North America and Japan

were stagnant, while those in South America and Asia grew strongly. Of the major

markets, Russia, Brazil, India and China saw the most rapid growth.

The automobile industry in India — the ninth largest in the world with 2009

production of over 2.3 million cars and commercial vehicles — is one of the fastest-

growing global automotive industrie A number of domestic companies, as well as the

growing multinational investment, have led to rapid increases in automobile

production.Following economic liberalization in India in 1991 the Indian automotive

industry has demonstrated sustained growth as a result of increased competitiveness

and relaxed restrictions. The monthly sales of passenger cars in India exceed 150,000

units.

An embryonic automotive industry emerged in India in the 1940s. Following the

independence, in 1953, the Government of India and the private sector launched

efforts to create an automotive component manufacturing industry to supply to the

automobile industry. However, the growth was relatively slow in the 1950s and 1960s

due to nationalization and the license raj which hampered the Indian private sector.

After 1970, the automotive industry started to grow, but the growth was mainly driven

by tractors, commercial vehicles and scooters. Cars were still a major luxury Japanese

manufacturers entered the Indian market ultimately leading to the establishment of

Maruti Udyog. A number of foreign firms initiated joint ventures with Indian

companies.The first car rolled out on the streets of Mumbai (then Bombay) in 1898,

the Automobile Industry of India has come a long way. Not very long ago, the only

cars that were available in India were the Ambassador and the Premier Padmini. The

Ambassador is a replica of the Morris Oxford – an old British car, while the Premier

Padmini was a Fiat 1100 assembled in India.

8

AUTOMOTIVE INDUSTRY

The automotive industry designs, develops, manufactures, markets, and sells the

world's motor vehicles. In 2008, more than 70 million motor vehicles, including cars

and commercial vehicles were produced worldwide.

In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in

Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in

Latin America, 2.4 million in the Middle East and 1.4 million in Africa.The markets

in North America and Japan were stagnant, while those in South America and Asia

grew strongly. Of the major markets, Russia, Brazil, India and China saw the most

rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there

were about 806 million cars and light trucks on the road in 2007; they burn over 260

billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,

especially in China and India. In the opinion of some, urban transport systems based

around the car have proved unsustainable, consuming excessive energy, affecting the

health of populations, and delivering a declining level of service despite increasing

investments. Many of these negative impacts fall disproportionately on those social

groups who are also least likely to own and drive cars. The sustainable transport

movement focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry, are

experiencing a combination of pricing pressures from raw material costs and changes

in consumer buying habits. The industry is also facing increasing external competition

from the public transport sector, as consumers re-evaluate their private vehicle usage.

Roughly half of the US's fifty one light vehicle plants are projected to permanently

close in the coming years with the loss of another 200,000 jobs in the sector, on top of

the 560,000 jobs lost this decade.

9

AUTOMOBILE INDUSTRY

The automobile industry in India — the ninth largest in the world with 2008

production of over 2.3 million cars and commercial vehicles — is one of the fastest-

growing global automotive industrie A number of domestic companies, as well as the

growing multinational investment, have led to rapid increases in automobile

production.Following economic liberalization in India in 1991 the Indian automotive

industry has demonstrated sustained growth as a result of increased competitiveness

and relaxed restrictions. The monthly sales of passenger cars in India exceed 150,000

units.

An embryonic automotive industry emerged in India in the 1940s. Following the

independence, in 1953, the Government of India and the private sector launched

efforts to create an automotive component manufacturing industry to supply to the

automobile industry. However, the growth was relatively slow in the 1950s and 1960s

due to nationalization and the license raj which hampered the Indian private sector.

After 1970, the automotive industry started to grow, but the growth was mainly driven

by tractors, commercial vehicles and scooters. Cars were still a major luxury Japanese

manufacturers entered the Indian market ultimately leading to the establishment of

Maruti Udyog. A number of foreign firms initiated joint ventures with Indian

companies.The first car rolled out on the streets of Mumbai (then Bombay) in 1898,

the Automobile Industry of India has come a long way. Not very long ago, the only

cars that were available in India were the Ambassador and the Premier Padmini. The

Ambassador is a replica of the Morris Oxford – an old British car, while the Premier

Padmini was a Fiat 1100 assembled in India. All that was in pre-liberalization India,

which existed before 1991, when the first liberalization measures were announced.

Earlier, the production of the Maruti Suzuki 800 hatchback car in 1983 – a joint

venture between Government of India and Suzuki Motors of Japan, paved the way

for a renaissance in the Indian automobile sector. Post liberalization, India is on

every car manufacturer’s map. The reasons are not hard to notice. Currently, India is

the second largest two-wheeler market and the fourth largest commercial vehicle

market in world. Not only it is the eleventh largest passenger car market globally, but

it is also expected to be the seventh largest by 2016,A well developed transportation

10

system plays a key role in the development of an economy, and India is no exception

to it. With the growth of transportation system the Automotive Industry of India is

also growing at rapid speed, occupying an important place on the 'canvas' of Indian

economy.

• India is being recognized as potential emerging auto market.

• Foreign players are adding to their investments in Indian auto industry.

• Within two-wheelers, motorcycles contribute 80% of the segment size.

• Unlike the USA, the Indian passenger vehicle market is dominated by cars

• Tata Motors dominates over 60% of the Indian commercial vehicle market.

• 2/3rd of auto component production is consumed directly by OEMs.

• India is the largest three-wheeler market in the world.

• India is the largest two-wheeler manufacturer in the world.

• India is the second largest tractor manufacturer in the world.

• India is the fifth largest commercial vehicle manufacturer in the world.

• The number one global motorcycle manufacturer is in India.

• India is the fourth largest car market in Asia - recently crossed the 1 million

mark.

The Indian automobile industry is now striding inroads into the rural middle class

after its inroads into the urban markets and rural rich. It is trying to bring in varying

products to suit requirements of different class segments of customers

11

HISTORY

In the 1980s, a number of Japanese manufacturers launched joint-ventures for

building motorcycles and light commercial-vehicles. It was at this time that the Indian

government chose Suzuki for its joint-venture to manufacture small cars. Following

the economic liberalization in 1991 and the gradual weakening of the license raj, a

number of Indian and multi-national car companies launched operations. Since then,

automotive component and automobile manufacturing growth has accelerated to meet

domestic and export demands.

TIME LINE OF INDIAN AUTOMOBILE INDUSTRY

* 1897 First Person to own a car in India - Mr Foster of M/s Crompton Greaves co.

* 1901 First Indian to own a car in India - JamshedJi Tata

* 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata

* 1905 Fiat Motors

* 1911 First Taxi in India

* 1928 Chevrolet Motors

* 1942 Hindustan Motors

* 1944 Premier Automobiles Limited

* 1945 Tata Motors

* 1947 Mahindra & Mahindra Limited

* 1948 Ashok Motors

* 1948 Standard Motors

* 1981 Maruti Suzuki

* 1994 Mercedes-Benz

* 1994 General Motors India - Opel brand launch

* 1995 Ford Motor Company

* 1995 Honda Siel Cars India

* 1995 REVA Electric Car Company

12

GROWTH

Indian automobile industry has grown leaps and bounds since 1898, a time when a car

had touched the Indian streets for the first time. At present it holds a promising tenth

position in the entire world with being # 2 in two wheelers and # 4 in commercial

vehicles. Withstanding a growth rate of 18% per annum and an annual production

More than 2 million units

Reasons of Growth Economic liberalization, increase in per capita income,

various tax relief policies, easy accessibility of finance, launch of new models and

exciting discount offers made by dealers all together have resulted in to a stupendous

growth of Indian automobile industry.

Market Share Automobile industry of India can be broadly classified under

passenger vehicles, commercial vehicles, three wheelers and two wheelers, with two

wheelers having a maximum market share of more than 75%. Automobile companies

of India, Korea, Europe and Japan have a significant hold on the Indian market share.

Tata Motors produces maximum numbers of mid and large size commercial vehicles,

holding more that 60% of the market share. Motorcycles tops the charts of two

wheelers with Hero Honda being the key player. Passenger vehicle section is majorly

ruled by the car manufacturers capturing over 82% of the total market share. Maruti

since long has been the biggest car manufacturer and holds more that 50% of the

market.

Global recession has impacted, the Indian automobile industry also and can be seen

clearly in the sales figures of the last financial year. Even then this industry has high

hopes in 2009-2010, as banks have reduced loan interest rates and the major chuck of

automobile customers belong to the middle income group who are becoming

economically stronger with every passing day.

13

Type Public

Industry Automotive

Founded 1981 (as Maruti Udyog Limited)

Headquarters Delhi, India

Key people Mr. Shinzo Nakanishi, Managing

Director and CEO

Products Automobiles

Revenue ▲US$4.8 billion (2009)

Employees 6,903

Parent Suzuki Motor Corporation

Website www.marutisuzuki.com

Maruti Suzuki India Limited is a publicly listed automaker in India. It is the largest

automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a

majority stake in the company. It was the first company in India to mass-produce and

sell more than a million cars. It is largely credited for having brought in an automobile

revolution to India. It is the market leader in India and on 17 September 2007, Maruti

Udyog Limited was renamed Maruti Suzuki India Limited. The company's

headquarters are located in Delhi.

The 'voluntary disclosure of fuel economy' is a proactive measure undertaken by the

company in customer interest. The fuel economy figures obtained in tests by premier

automobile research institutions emphasize Maruti Suzuki's overall leadership in

making highly fuel efficient cars. It would enable customers to make an informed

choice when purchasing a car in the market said Mr. Shinzo Nakanishi, MD & CEO,

Maruti Suzuki India Limited.

14

Partner for the joint venture

Pressure started mounting on Indira and Sanjay Gandhi to share the details of the

progress on the Maruti Project. Since country's resources were made available by

mother to her son's pet project. A delegation of Indian technocrats was assigned to

hunt a collaborator for the project. Initial rounds of discussion were held with the

giants of the automobile industry in Japan including Toyota, Nissan and Honda.

Suzuki Motor Corporation was at that time a small player in the four wheeler

automobile sector and had major share in the two wheeler segment. Suzuki's bid was

considered negligible.

In the initial rounds of discussion the giants had their bosses present and in the later

rounds related to the technical discussions executives of these automobile giants were

present. Osamu Suzuki, Chairman and CEO of the company ensured that he was

present in all the rounds of discussion. Osamu in an article writes that it subtly

massaged their (Indian delegation) egos and also convinced them about the sincerity

of Suzuki's bid. In the initial days Suzuki took all steps to ensure the government

about its sincerity on the project. Suzuki in return received a lot of help from the

government in such matters as import clearances for manufacturing equipment

(against the wishes of the Indian machine tool industry then and its own socialistic

ideology), land purchase at government prices for setting up the factory Gurgaon and

reduced or removal of excise tariffs. This helped Suzuki conscientiously nurse Maruti

Suzuki through its infancy to become one of its flagship ventures.

15

Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star,

Suzuki's fifth global car model, was designed and is made only in India. Besides

being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is also Suzuki's

leading research and development arm outside Japan

Relationship between the Government of India, under the United Front (India)

coalition and Suzuki Motor Corporation over the joint venture was a point of heated

debate in the Indian media till Suzuki Motor Corporation gained the controlling stake.

This highly profitable joint venture that had a near monopolistic trade in the Indian

automobile market and the nature of the partnership built up till then was the

underlying reason for most issues. The success of the joint venture led Suzuki to

increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982

both the venture partners had entered into an agreement to nominate their candidate

for the post of Managing Director and every Managing Director will have a tenure of

five years.

Initially R.C.Bhargava, was the managing director of the company since the inception

of the joint venture. Till today he is regarded as instrumental for the success of Maruti

Suzuki. Joining in 1982 he held several key positions in the company before heading

the company as Managing Director. Currently he is on the Board of Directors. After

completing his five year tenure, Mr. Bhargava later assumed the office of Part-Time

Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as the Managing

Director on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after

spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited

as General Manager. Later in 1987 he was promoted as Chief General Manager, 1988

as Director, Productions and Projects, 1989 Director, Materials and in 1993 as Joint

Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board

with the reason of it being called on a short notice. Later Suzuki Motor Corporation

went on record to state that Mr. Bhaskarudu was "incompetent" and wanted someone

else. However, the Ministry of Industries, Government of India refuted the charges.

16

Media stated from the Maruti Suzuki sources that Bhaskarudu was interested to

indigenise most of components for the models including gear boxes especially for

Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the Government and

would not let it increase its stake in the venture. If Maruti Suzuki would have been

able to indigenise gear boxes then Maruti Suzuki would have been able to

manufacture all the models without the technical assistance from Suzuki. Till today

the issue of localization of gear boxes is highlighted in the press.

The relation strained when Suzuki Motor Corporation moved to Delhi High Court to

bring a stay order against the appointment of Mr. Bhaskarudu. The issue was resolved

in an out-of-court settlement and both the parties agreed that R S S L N Bhaskarudu

would serve up to 31 December 1999, and from 1 January 2000, Jagdish Khattar,

Executive Director of Maruti Udyog Limited would assume charges as the Managing

Director. Many politicians believed, and had stated in parliament that the Suzuki

Motor Corporation is unwilling to localize manufacturing and reduce imports. This

remains true, even today the gear boxes are still imported from Japan and are

assembled at the Gurgaon facility.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleet

management solution to corporates. Its impressive list of clients who have signed up

of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona

Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This

fleet management service include end-to-end solutions across the vehicle's life, which

includes Leasing, Maintenance, Convenience services and Remarketing.

.

Model Company Segment Fuel Certified Km per Litre

M800 Maruti Suzuki A1 Petrol 16.1

Omni Maruti Suzuki C Petrol 16.9

VERSA Maruti Suzuki C Petrol 12.7

17

Alto Maruti Suzuki A2 Petrol 18.1

Zen Estilo Maruti Suzuki A2 Petrol 17.3

Wagon R Maruti Suzuki A2 Petrol 17.0

A Star Maruti Suzuki A2 Petrol 19.6

Swift Diesel Maruti Suzuki A2 Diesel 21.0

Swift Petrol Maruti Suzuki A2 Petrol 15.9

Dzire Petrol Maruti Suzuki A3 Petrol 15.9

Dzire Diesel Maruti Suzuki A3 Diesel 21.0

SX4 Maruti Suzuki A3 Petrol 15.0

Gypsy Maruti Suzuki MUV Petrol 11.3

Grand Vitara Maruti Suzuki MUV Petrol 11.2

HYUNDAI MOTORS

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-

Yung Chung established Hyundai Auto Service in Seoul, South Korea at the age of

31 years. The name Hyundai was chosen for its meaning which in English translates

to ―modern.‖ The Hyundai logo is symbolic of the company's desire to expand. The

oval shape represents the company's global expansion and the stylized "H" is

symbolic of two people (the company and customer) shaking hands.

Hyundai Motor Company was founded by Ju-Yung Chung and younger brother Se-

Yung Chung in December 1967. In 1968 the company entered into a contract with

Ford motor company to assemble the Ford Cortina and Granada for the South Korean

market and continued to produce them until 1976. Hyundai completed construction

of the Ulsan plant in six months and achieved the shortest groundbreaking to first

commercial production of any of Ford’s 118 plants. The eight year journey provided

Hyundai with assembly knowledge, blueprints, technical specifications, production

manuals, and trained Hyundai engineers.

18

HYUNDAI MOTORS INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of world’s fifth

largest automobile company, Hyundai Motor Company, South Korea, and is the

largest passenger car exporter and the second largest car manufacturer of India. HMIL

presently markets 49 variants of passenger cars across segments. These includes the

Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the

Accent and the Verna in the C segment, the Sonata Transform in the E segment.

Hyundai

Hyundai Group underwent a massive restructuring following the 1997 East Asian

financial crisis and the founder's death in 2001. Today many companies bearing the

name Hyundai are legally unrelated to the Hyundai Group. Some of the larger former

members of the conglomerate include Hyundai Group, Hyundai Kia Automotive

Group, Hyundai Department Store Group, Hyundai Heavy Industries Group, and

Hyundai Development Group. Following the conception, Hyundai Group's business

remains manufacturing of elevators, container shipping services, and tourism.

Hyundai Will Introduce An Eight - Speed Transmission

Wow, Hyundai is becoming more like Lexus, Benz, BMW and the other luxury auto

makers especially when they are set to release a new fuel-smart 8-speed transmission

in 2010. This new transmission is supposed to greatly improve fuel economy

according to Hyundai. The only other automakers offering such a transmission

remains to be Lexus where BMW has plans to introduce one within the next two

years. This is also a step towards meeting strict fuel economy guidelines in the years

to come. Why not stay ahead of the game, that’s exactly what Lexus did and look at

their prestigious record and reputation in the automotive world .More than likely the

new Hyundai Genesis sedan will get this new 8-speed transmission. If it is any other

Hyundai or newly introduced Hyundai then we want to know about it!

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PRICE OF HYUNDAI PRODUCTS

Hyundai Accent Price:Rs.5,08,092

Hyundai Getz Prime Price:Rs.4,12,108

Hyundai i10 Price:Rs.3,53,018

Hyundai i20 Price:Rs.5,05,000

Hyundai Sonata Embera Price:Rs.12,98,786

Hyundai Tucson Price:Rs.16,96,114

Hyundai Verna Price:Rs.6,80,745

20

REVIEW OF LITERATURE

Abrenica said that up to date, Korea is the only developing economy in Asia with

indigenous auto manufacturing base capable of competing in international market,

given developments in the world industry, the catch up task for other countries in the

region will be more difficult.

Mukhergee said that Maruti is by far the biggest player with about 70% of the market

share. Telco and kinetic are also working on introducing small car models. In addition

to price duties and taxes, economic growth nod availability of adequate road

kilometers, another factor affecting demand is availability and cost of credit. Many

companies also provide new cars of soft loans for buying cars to its executives as

perks.

Business world said that environmentalists such as R.K.Pachauri of the energy

research institute and Sunlit Mahayana of centre foe science and environment began

raising concerns about how a million small cars would impact urban congestion and

air quality. But Tata was privy to information that his car had survived a frontal crash

test and met euro in emission norms several months ago.

Jackson et.al(2009) said that in fact as the rate of personal vehicle ownership soars in

asia,a new kind of global automotive manufacturing industry is emerging to capitalize

on this customer base. In emerging markets , especially if the building of roads and

fuel infrastructure continues, individual mobility and job opportunities will increase,

he also said, that may alow us to develop indigenous technologies at lower cost,

making the cars more affordable but still meeting emission norms.

21

Nelson(2009) said that nano low price is dependent on cost of steel at launch Tata

engineers also designed nano’s internal machinery with an emphasis on cost saving.‖

Global insight sports the view that the car wills huge demand domestically. However

it remain to be seem how long the vehicle can be sold for this ultra low price. In how

it will be affected by a rise in competition in future.‖

Narayanan(2008) said that environmentalists such as R.K.Pachauri of the energy

research institute and sunita narain of centre four science and environment began

raising concerns about how a million small cars would impact urban congestion and

air quality. But Tata was privy to information that his car had survived a frontal crash

test and met euro 4 emission norms several months ago. If the nano was one of the

most anticipated events in the automotive history, its launch has set the industry

aflutter

John hagel and john seely brown (2008) sys that with the exception of Manjeet

Kripalani, business week India bureau chief, few have focused on this break through

element of the nano innovation . Yet, as Kathleen franz, makes clear in her wonderful

boo,Tinkering Consumers Reinvent the Early Automobile, it was the open design of

early automobile models and blurred the lines between consumption and invention

and led to a wave of innovations that were lattes embrazed by the auto industry.

Wadekar said that small cars like alto, wagon-R etc. have been targeted at the middle

class people who can’t afford a luxury car but would need small size cars for entire

family‖

Prahalad C.K, says that the nano represents an important inflaction point bin the

global auto industry and in the evolution and maturation of the Indian industry. There

is great excitement because tata motors has introduced the global auto industry to a

22

whole new consumer segment. In india, it lays to rest skeptics who five years ago

assumed india cannot complete in manufacturing.

Gusha et.al said that industry body associated chambers of commerce and

industry(ASSOCHAM) reckon nano low price could actually revonutionise auto

prices downwards, currently the small car price tag of global players are in the higher

brackets,ranging upto rs,400000 and more. For example nano nearest current rival on

Indian roads is the maruti 800, owned by japan’s Suzuki and cost rs 215000 for a

basic model and he said that the Indian consumer expectations and price sensitiveness

can tap into what is often a large and promising market, but they should‖nt assume

that the lowest price tag will always lead it Indian consumer if the value of superior

features and quality is seen to far outweigh their cost,‖

Karthik et.al said that ten Indian auto companies had won the deeming price- a

spectacular achievement, considering the number of firms and the short duration in

which they turned themselves from pedestrian to world class.‖

Berks said that in passenger car segment beyond the current 10%-12%.nano may also

take some sheen of the motorcycle segment especially expansion of population

between the age group of 25 to 50 years, increasing affluence of the Indian middle

class and heightened compition amongst automobiles manufacturers,resulting in

improved quality offerings, will continue to be the key drivers for the industry in

terms of both market size and production capacities.

Ravikanth said that technically, the nano is a performance and technology

achievement for TATA, as designing a low3 cost vehicle is a challenge for any

manufacturer. Nano does not have any active or passive safety system such as air

bags, traction control electronic stability controls and others. The TATA nano

promises to displace motorcycles in emerging markets and improve people’s standard

of living as in the mandate of a people’s car.‖

23

OBJECTIVES OF STUDY

1) To understand the perception in customers mind for selected brand of maruti

and hyundai.

2) To identify the factor responsible for consumer prefrences towards the

particular brand.

3) To identify preferred source of communication of maruti and Hyundai

.

Relevance of the project

1. This project will help us to know that what the customer think about various

brands in automobile industry.

2. Identifying the difference in the position of these brands in the customers,s

mind will help us in increasing the level of understanding of the customer

behavior

3. The perception maps will analysed to know the exact position of the brand in

customer,s mind ,thus we can also analyze if the marketing communication

message used by the brand is successfully creating the desired image or there

ia any positioning error

24

RESEARCH PLAN-:

DATA SOURCE-:

Primary data source to be used for purpose of study. I will collect primary data by the

help of survey conducted among the people of phagwara who had a car of any

company

Methodology

Tools : Multidimensional scaling

-Research Type -: Short Exploratory research as well as Descriptive research for the

purpose of our study.

-Research method-: Survey method will be used to get responses from the

respondents

-Research -: To conduct the survey the questionnaire used by us would have close-

ended questions and open ended questions.

SAMPING PLAN -:

Sampling method -: Random sampling method.

Sampling Unit -: sampling unit is people of PHAGWARA,who is having a car.

Sample size -: sample size will be 50

25

DATA ANALYSIS AND INTERPRETATION

Q:1) Which car do you have?

HYUNDAI 16

MARUTI 15

MAHINDRA 2

BMW 2

MERCEDES 5

TATA 3

SKODA 2

TOYOTA 5

Fig.no.4.1 Ownership chart

INTERPRETATION AND ANALYSIS

After doing customer survey,we came to know that 16%people of phagwara is having

HYUNDAI 4wheeler,15% is having MARUTI, 2% is having M&M 2% is having

BMW,5% is having TATA,3% people is having 4wheeler of MERCEDES,2% is

having car of SKODA,5% is having TOYOTA

32%

30%4%

4%

10%

6%

4%10%

OWNERSHIP

HYUNDAI MAHINDRA MARUTI BMW

TATA MECEDES SCODA TOYATA

26

Q:2 What is the 1st thing which comes into your mind when you think about a

car.

A) Price B) Quality C) Durability D) Reliability

E) Safety F) Mileage G) Design H) Creative look

PRICE 9

QUALITY 14

DURABILITY 2

RELIBILITY 3

SAFTY 2

MILAGE 5

DESIGN 10

CRETIVE LOOK 9

Fig.4 .2 consumer prefrences chart

PRICE18%

QUALITY28%

DURABILITY4%

RELIABILITY6%

SAFETY4%

MILEAGE10%

DESIGN20%

CREATIVE LOOK10%

Consumer preference

27

INTERPRETATION AND ANALYSIS

From this survey we came to know that people always give 1st preference to

QUALITY only and after that design,that’s why most people has said that maruti

and hyundaiis basically known for its QUALITY products and

production,then,9%people has said PRICE,2%people has said safety,2% people said

DURABILITY,and 3% people has said REALIBILITY,comes into the mind when

they think about Maruti and Hyundai

Q-3What is your preferred source through which you would like to receive

information about Maruti and Hyundai cars.

NEWS PAPER 8

TELEVISION 22

MAGAZINES 16

FRIENDS 4

Fig.4.3 Sources of information

NEWS PAPER

16%

TELEVISION44%

MAGAZINES32%

FRIENDS8%

SOURCES OF INFORMATION

28

INTERPRETATION AND ANALYSIS

In this question,we analysed that 16% people prefer MAGAZINES,So that the

MAGAZINES are the fastest informational source for maruti and Hyundai .for

providing the information to the customers about the maruti and Hyundai and its

activity,and 22% people prefers T.V for getting information about maruti and

Hyundai ,8% people prefer newspaper and 4% people came to know about the maruti

and Hyundai through friends.

Q4:-Please rate the following brands as per their levels of similarity or dis-similarity

on the basis of specified parameters:

Scale: (0 : same ,1:very similar, 2:similar, 3:neutral, 4:dis-similar 5:verydis-similar)

BRAND MARUTI 800

ALTO ZEN SWIFT

SWIFT DEZIRE

SANTRO I10

I20 ACCENT VERNA

MARUTI 800 ALTO ZEN SWIFT SWIFT DEZIRE SANTRO I 10 I 20 ACCENT VERNA

29

Fig.4.4 Dimension graph

30

Fig.4.5 Perception graph

INTERPRETATIONAND ANALYSIS

In this question we analysed in the basis of price zen ,alto,maruti 800 is same but the

price of santro and i20 is very different and in second dimension the quality of swift

desire and swift is very different to each other and accent and verna is very close or

similar to each other so this perception of customer towards the automobile industry.

31

SUUGESTION TO THE COMPANY

1) The customer think the price of alto ,maruti800, i10,zen is same price but

the price is not same .so company make different types brands according

to customer mind.

2) The customer think verna and accent are same range but actually they are

different range so company differentiate the brands.

3) As the maruti and Hyundai is known for its durability,realibility,quality

product and production.so,the maruti and Hyundai needs to maintain this

status in future also by producing Quality product.

32

CONCLUSION

After the completion of this project, we came to conclude that all most people are

aware about the product of Maruti Suzuki and Hyundai. The price of Zen, maruti800,

Alto, i10 is same price in customer mind and in case of the price of swift and swift

desire is not same in customer mind the price is so high and the case of Verna and

Accent so different but the customer perception the price is similar and the price of

i20 and santro is same price and same quality and in the mind.

LIMITATIONS

Information bias may be constraint for our project.

For the primary survey we have to really on the correctness of responses given

by the respondents.

The research would not represent the whole population so the scope of

research is limited.

Every customer not aware of the different product of Maruti and Hyundai.

33

BIBLIOGRAPHY

BOOKS: Sagh, R.(2007),RESEARCH METHEDOLOGY,12th EDITION ,NEW

DELHI:Pearson published ltd,p.g no:305-322/.

ARTICLE:

Pautins,v and geistfeld,l(2003),The effect of consumer perception of store attribute on

appard store preferences,journal of fashion marketing and management

volume:7,issue page:3781-385.

Harris,k(2001),customer participation ion retail service:lesson from brecht

international journal of retail and distribution management volume29,no.pp.359-369.

34

REFERENCES

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market in

age of gl;obal competition. Asian pacific Economic litearature.

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future‖.

Indian institute of managhement kolkata.

3. Nano makes it to Time’s most important cars of all time. The Bussiness world—

January 18,2009.

4. Bill Jacson and Vikas Sehgal―One Billion new automobiles‖ Resilience report,

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Hamilton inc.

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Posted on 2/8/2009.

6. Dinesh Narayan, ―The making of a modern classic‖Business World, 28 January

08.

7. John Hagel and john Seely Brown, ―Learning from tata nano

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Magazine,vol5,issue3,dated jan 26,2008.

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Mckinsey quarterly,march 08,2005.

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O.K.COM.

35

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Advertisement.

36

QUESTIONNAIRE

Respected sir/madam,

It is humbly submitted that we are doing research project on the topic entitled “A

comparative study on customer perception towards product of Maruti and

Hyundai AT Jalandhar & Phagwara”.

In this regards your kind cooperation is needed in filling the questionnaire

herewith. Further, we assure you that all the information provided by you would

be kept strictly confidential and will be used for academic purpose only.

Thanks

Name Gender

Age Place

Q:1 Which car do you have?

CAR- _______________

Q:2 What is the 1st thing which comes into your mind when you think

about a car.

B) Price B) Quality C) Durability D) Reliability

E) Safety F) Mileage G) Design H) Creative look

Q:3 What is your preferred source through which you would like to receive

information about Maruti and Hyundai Cars.

A) News-Paper B)Television C)Magazines D)Friends

37

Q4:-Please rate the following brands as per their levels of similarity or dis-

similarity on the basis of specified parameters:

Scale: (0 : same ,1:very similar, 2:similar, 3:neutral, 4:dis-similar 5:verydis-

similar)

BRAND MARUTI 800

ALTO ZEN SWIFT

SWIFT DEZIRE

SANTRO I10

I20 ACCENT VERNA

MARUTI 800 ALTO ZEN SWIFT SWIFT DEZIRE SANTRO I 10 I 20 ACCENT VERNA

38