Marketing strategy of hyundai motors in chandigarh

“MARKETING STRATEGY OF HYUNDAI MOTORS

IN CHANDIGARH”

A report submitted to ICAII, Sector 32, CHANDIGARH as a partial fulfillment

of MBA (Marketing).

Submitted to: - Submitted by:-

ICAII AMIT KUMAR

Sector 32, Roll No. 511117265

Chandigarh

ICAII Institute, Sector 32, Chandigarh

Certificate

This is to certify that the project work done on “Marketing strategy of KLG Hyundai in

CHANDIGARH” submitted to ICAII Institute of Management, Sector 32, CHANDIGARH

by AMIT KUMAR in partial fulfillment of the requirement for the award of degree of MBA

in (Marketing Management) is a bonafide work carried out by them under my supervision

and guidance. This project work is the original one has not been submitted anywhere else for

any other degree/diploma.

Date: Name of the Guide:

Seal/Stamp of Guide: MANOJ KUMAR MISRA

Address: WESTSIDE

Acknowledgement

No research can blossom from single person’s mind without proper guidance, assistance and

inspiration from various quarters. My project was given its present shape by assistance of

many people whom we are greatly indebted to. I owe deep intellectual debt to the numerous

people who through their rich and various contributions have greatly improved our

understanding of various concepts of our project.

I express my sincere thanks to Manoj Kumar Misra for his stimulate discussion, constructive

and valuable suggestions that helped us in this endeavor. I would like to thank all those

people who graciously helped us by sharing their valuable time, experience & knowledge for

completion of this project.

Finally, I thank our parents for their moral support and financial help.

Declaration

The final project on “Market strategy of KLG Hyundai” under the guidance of Manoj

Kumar Misra is the original work done by me. This is the property of the Institute & use of

this report without prior permission of the Institute will be considered illegal & actionable.

Date: Signature:

Amit Kumar

Roll No. : 511117265

LITERATURE REVIEW

MARKETING

Marketing is a societal process by which individual and groups obtain what they need

and want through creating, offering and freely exchanging products and services of value

with or otherwise it is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods. Services to create exchanges that satisfy

individual and organizational goals.

MARKETING STRATEGY

Marketing strategy is a set of objective polices and rules that leas the company's

marketing efforts. It is the marketing approach to accomplish the bread objective of the

marketing plan. The several of marketing strategy are given below.

1. Selecting largest markets segmentation.

2. Positioning

3. Product

4. Price

5. Place

6. Promotion

7. Research and Development

8. Marketing research

The main important part of a marketing company is distribution channel. If this

process is not as per the requirement of the customer then the whole company will not

survived in this competition market. So, every company always concentrates on their

distribution process/channel.

TABLE OF CONTENT

Chapter 1:

Introduction of the companyAbout the companyHistory of the companyObjective of the companyMission and vision of the company

Chapter 2:Products of the company Chapter 3: Marketing & Sales strategy of the company in CHANDIGARH.

Chapter 4: Sales and Marketing strategy of it

CompetitorsAbout the competitorProduct of the competitor and comparison with product of HyundaiComparison of Strategy of Hyundai motors and its competitor

Chapter 5: Advertisement policy.

Chapter 6:Customer relationship management and satisfaction survey Chapter 7:Social Corporate activity of the Company

CHAPTER - 1

Introduction of the company

About the company

History of the company

Objective of the company

Mission and vision of the company

Introduction of company

About the company

Hyundai was founded in 1946 in Seoul, Korea. The name ‘Hyundai’ literally means

‘Modern era’, and from the very start the company quickly adopted a passion for progress

which has been our hallmark ever since.

In less than 50 years, the Hyundai group has become a world leader in building

everything from ships to microchips, including consumer electronics, oil rigs and massive

infrastructure projects.

We even have our own steel blast furnace to process raw materials, many of which come from Australia, which provides enhanced quality control over our products.

The Hyundai Motor Company

The Hyundai Motor Company was founded in 1967. It

produced Korea’s first locally designed car in 1976, and now produces close to four

million cars and commercial vehicles a year. Today, Hyundai employs over 68,000

people around the globe. We have manufacturing plants in Korea, India, the USA and the

Czech Republic, and joint venture plants in China, Turkey, South-East Asia, South

America, Africa and Russia.

Hyundai is growing into a brand appreciated by its customers by continuously striving

to achieve the single goal of making excellent quality products with an emphasis on

exceeding customer expectations.

Hyundai now ranks as the world’s fifth largest automotive corporation. What’s more,

Hyundai annually invests billions of dollars in research and development to

continuously bring you eye-catching, practical cars that are safer and more efficient

than ever before.

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

Motor Company (HMC), South Korea and is the largest passenger car exporter and

the second largest car manufacturer in India. HMIL presently markets 7 models of

passenger cars across segments. The A2 segment includes the Santro, i10 and the i20,

the A3 segment includes the Accent and the Verna, the A5 segment includes the

Sonata Transform and the SUV segment includes the Santa Fe.

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

the most advanced production, quality and testing capabilities in the country. To cater

to rising demand, HMIL commissioned its second plant in February 2008, which

produces an additional 300,000 units per annum, raising HMIL’s total production

capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customers with cutting-edge

global technology, HMIL has set up a modern multi-million dollar research and

development facility in the cyber city of Hyderabad. It aims to become a centre of

excellence for automobile engineering and ensure quick turnaround time to changing

consumer needs.

As HMC's global export hub for compact cars, HMIL is the first automotive company

in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently

exports cars to more than 115 countries across EU, Africa, Middle East, Latin

America and Asia Pacific. It has been the number one exporter of passenger car of the

country for the sixth year in a row. To support its growth and expansion plans, HMIL

currently has a 325 strong dealer network and 674 strong service points across India,

which will see further expansion in 2011.

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

Motor Company, South Korea and is the second largest car manufacturer and the

largest passenger car exporter from India. HMIL presently markets 55 variants of

passenger cars across segments. The Santro in the B segment, the Getz Prime, i10 and

the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C

segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.

Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing

passenger car manufacturer, registered total sales of 489,328 vehicles in the calendar year

(CY) 2008, an increase of 49.6 percent over CY 2007. In the domestic market it clocked a

growth of 22.4 percent with 245387 units in 2008, while overseas sales grew by 92.5

percent, with exports accounting for 243,931 units in 2008.

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

most advanced production, quality and testing capabilities in the country. In continuation

of its commitment to provide the Indian customer with global technology, HMIL

commissioned its second plant in February 2008 which produces an additional 300,000

units per annum, raising HMIL's total production capacity to 600,000 units per annum.

HMIL has invested to expand capacity in line with its positioning as HMC's global

export hub for compact cars. Apart from the expansion of production capacity, HMIL

currently has 271 strong dealer networks across India, which will be further bolstered

in 2009.

In 2008, HMIL also successfully completed 10 glorious years of operations in India and

to commemorate its achievements, initiated a unique trans-continental drive from Delhi to

Paris in two of its hugely popular i10 Kappa cars. The drive created automobile history by

completing a distance of 10,000km in just 17 days after which the i10s were showcased at

the Paris Motor Show in October. In fact it was at the Paris Motor Show that HMIL first

unveiled the Hyundai i20 and the car received a phenomenal response from the auto

enthusiasts across the world. Hyundai Motor India also accomplished the landmark of

producing the fastest 20th lakh cars in India in 2008.

Like 2008, the year 2007 had also been a significant year for Hyundai Motor India. It

achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai

exported to over 95 countries globally; even as it plans to continue its thrust in existing

export markets, it is gearing up to step up its foray into new markets. 2007 also saw the

launch of the i10 and yet another path-breaking record in its young journey by rolling out

the fastest 1,500,000th car.

Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards

from the leading automotive magazines and TV channels like BS Motoring, CNBC-

TV18 AutoCar, NDTV Profit Car & Bike India and Overdrive magazine. The i10 was

also the choice of the discerning automotive media of the country as they conferred

the prestigious 'Indian Car of the Year' (ICOTY) award to the i10 as well.

The Santro and the Accent also received the 'TNS Voice of the Customer - 2008' award

for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March

2008 it achieved yet another milestone by rolling out the fastest 500,000th export car.

In 2007, the Hyundai Verna had also bagged some of the most prestigious awards starting

with the Overdrive magazine’s ‘Car of the Year 2007’, the ‘Best Mid-size Car of the

Year’ award from NDTV Profit Car & Bike India, the ‘Best Value for Money Car’ from

CNBC Auto car and 'Performance Car of the Year' from Business Standard Motoring.

Hyundai cars have been a favorite at all awards ceremonies and has won many

awards. The Sonata Embera won the 'Executive Car of The Year 2006' award from

Business Standard Motoring magazine and NDTV Profit Car & Bike India had

declared the Tucson as the 'SUV of The Year 2006'.

Not only this, HMIL has also been awarded the benchmark ISO 14001 certification for its

sustainable environment management practices.

History of the company

Abstract

Taking pride in your car by driving it and admiring it is one thing, actually knowing

its history is quite another.

The Hyundai Motor Company is one if not the most dynamic automobile producer in

any developing country. This is remarkable considering that the company is closing in

on 40 years of existence. To outline its history one must also look into the life and

times of its founder Chung Ju-Yung. It cannot be told without the outlining the

founders rise from the rice fields of Korea to the circumstances that let him to acquire

the knowledge and determination that led to the creation of one of the fastest growing

family owned businesses into a global competitor. His creation of numerous

companies eventually led to the establishment of the Hyundai Group. The Hyundai

Motor Company was one of these. He created it and transformed it from a mere

assembler of Ford models to a designer and exporter of its own cars and engines in

less than four decades. It has already become a major global player with plants and

dealerships that span six continents. The company is one of the largest and most

diversified business organizations with 45 affiliated domestic companies and 254

overseas companies in nearly 200 countries. The Hyundai Motor Company is but one

which the Group is active in such as shipbuilding, steel, petrochemicals, heavy

machinery, aerospace, electronics and financial services. These pages therefore

outlines not only the rich and unique History of the Hyundai Motor Company but also

the remarkable years beforehand that led to its creation, the eventual breakup of the

Group and its continuous development into a top ten global automaker.

Pre-Hyundai History 1900-1946

1915 1930 1932 1934 1937 1939 1940 1945 1946 1947

1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

1950 1951 1952 1953 1954 1955 1956 1957 1958 1959

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

2010 2011

History Part 1: Before the Hyundai Motor Company. 1915-1939

The story of Hyundai Motor Company starts off first and foremost with its founder,

Chung Ju-Yung. He alone created an industrial empire, pulled post-war Korea out of

poverty and ruin while building his own fortune. As mentioned in the abstract, to

outline the History of Hyundai one must start with its founder and the years leading

up to the creation of the Hyundai Motor Company.

What does Bill Gates of Microsoft, Phil Knight of Nike, Pierre Omidyar of ebay, and

Larry Page of Google all has in common. They have the vision, the tenacity and the

refusal to back down, and turn a company into a global player. In Korea, its best

personified by Chung Ju-Yung who with his vision created a group of companies that

by the time he retired in 1991, accounted for 16 percent of Korea’s gross domestic

product and 12 percent of its total exports. The Hyundai Group is one that helped

Korea rise to become the world’s 11th largest economy, the eight largest trading

partners of the U.S., and a global leader in construction, semiconductors, shipbuilding

and steel production. The following outlines the years leading to the creation of the

Hyundai Motor Company.

1915

Chung Ju-Yung the eldest son of two girls and six boys is born on November 25th,

1915 in the northern mountainous region of Tongchon, Kangwon-do in what was later

known as North Korea to a poor peasant farming family.

1930

Chung graduates from Sonjon Primary School. [1]

Chung’s formal education ends when at the age of 14, his father withdraws him and

set him to task of helping to provide for his younger siblings by working as a laborer

on the family farm. He was later sent to work as a railway construction laborer,

bookkeeping and then as a dock hand for a barge owner. All this by the age when

most modern youths would be entering junior high school. All the wages he obtained

from these jobs were taken by his parents to feed the family. These numerous job

assignments and stressful situations to provide for the family led young Chung to

attempt to run away from his Tongchun home numerous times. Twice he was caught

and brought back and discipline.

1932

Chung third and final attempt to run away was successful and he financed his 120

mile trek to Seoul by selling one of his father’s cows, arriving in the city around the

age of 16.[2]

1934

Chung Ju-yung (then 18 years old) enters the business world by being employed at

“Bokheungsanghwoe”, a rice shop in Seoul.

1937

At the age of 22, Chung Ju-yung opens his own rice shop “Gyungilsanghwoe” after

the acquisition of the former shop. Learning is the first and foremost fact in

establishing a business is trust.

1939

Chung Ju-yung marries 16-year old Byeon Jung-seok.

History Part 2: Occupation, Planting the seeds and The Group is formed.

1940-1950

In the following decade, due to the Japanese occupation, Chung Ju-yung starts

planting the seeds which eventually form into the Hyundai Group. A group of

companies that become the biggest conglomerate (chaebol), in the country of Korea.

The Group comprised many areas of activity including shipbuilding, car

manufacturing, retailing, finance and electronics in the years to come.

1940

The Japanese, which had occupied Korea at the time, made it illegal for Koreans to

own such critical food trades as rice shops and forced Chung Ju-yung to shutdown.

This led him to be a truck driver and then owner of his own delivery service. With the

delivery service he gained the knowledge of repairing the trucks and this led to

operate an automobile repair shop.

Chung Ju-yung officially opens and establishes a garage and repair firm, known as the

“Ah-do Service” auto repair shop in Seoul in March 1940.

1946

Chung Ju-yung (then 31 years old) establishes Hyundai Auto Service in Seoul, South

Korea on April, 1946 and repaired trucks for the US Armed forces in South Korea.

The business helped create and financed The Hyundai Civil Works Co. (known as

Hyundai Togun), which was later merged into the Hyundai Engineering and

Construction. Hyundai becomes the U.S. Army’s favorite contractor during the

Korean War.

1947

The Hyundai Group is founded by Chung Ju-yung as a construction company. The

company, Hyundai Civil Works Co. is formally establishment on May 25, 1947.

History Part 3: Mergers, Expansions and Contracts. 1950-1966

1950

Hyundai Togun renamed into Hyundai Construction and Engineering Co. in January,

after merging the Hyundai Auto Service and the Hyundai Civil Works Co. together.

Hyundai Commercial Transportation Co. established in July.

1960

Hyundai Construction ranks first in the construction industry in terms of orders

received.

1961

Hyundai Construction’s headquarters is built in Mukyo-dong, Seoul in January.

1964

Completion of Hyundai Construction’s cement factory in Tanyang, Chungchong-

pukto in June.

1965

Receives order to build Thailand’s expressway, the nation’s first order from abroad in

September.

History Part 4: The creation of the Hyundai Motor Company 1967-1970

1967

Hyundai starts building the multipurpose dam on the Soyang River in April, finishes

the project in December 1973.

Hyundai Motor Company established by Chung Ju-yung and his brother Se-yung

Chung on December.

1968

Hyundai starts on an eight year experience process of assembling vehicles (1968-

1976).

Entered into an Overseas Assembler Agreement (Licensing Agreement) with Ford.

(Whereby Hyundai was to assemble Ford compact cars on a semi-knockdown (SKD)

basis) Ford transferred “packaged” technology to Hyundai with a set of explicit

knowledge, such as blueprints, technical specifications, production manuals and

training of Hyundai engineers. This agreement with Ford gave Hyundai valuable

migratory knowledge with which to upgrade its tacit and explicit knowledge to auto

assembly.

Hyundai achieves the shortest time (six months) between groundbreaking and first

commercial production among the 118 Ford assembly plants around the world.

Hyundai starts producing the Ford Cortinas and Ford Granadas for the South Korean

domestic market from 1968 through 1976.

Construction begins on the Kyungbu Expressway connecting Pusan and Seoul

finishes in June

1970.

1969

Chung Ju-yung inaugurated as Hyundai Construction Chairman in January.

Hyundai Cement Co. established.

History Part 5: Collaborating and Learning 1970-1980

1971

Chung Ju-yung becomes the Hyundai Group chairman in February.

1972

On March 23, Hyundai Heavy Industries established. Specializing in Shipbuilding,

offshore & Engineering and Industrial Plant & Engineering. Founder Chung Ju-Yung

takes his first shipbuilding order for Hong Kong trade giant CT Tung, before even

building his ship yard. CT Tung received their tanker on time.

1972

On March 23, Hyundai Heavy Industries established. Specializing in Shipbuilding,

offshore & Engineering and Industrial Plant & Engineering. Founder Chung Ju-Yung

takes his first shipbuilding order for Hong Kong trade giant CT Tung, before even

building his ship yard. CT Tung received their tanker on time.

1973

Hyundai Heavy Industries Ltd. Established in April.

The Korean government formulated The Long-Term Plan for Promotion of the

Automobile Industry and ordered four automobile companies to submit detailed plans

to develop Korean cars by 1975. Hyundai being one of these companies. The others

were Daewoo, Kia and Sangyong.

Hyundai submits its master plan for a new plant with a capacity of 80,000 “Korean”

cars. (Note: Actual production for the year was 5,426 cars.

Hyundai approaches 26 firms in five countries to acquire different technologies. (10

firms in Japan and Italy for car design. 4 firms in Japan and the United States for

stamping shop equipment. 5 firms in the United Kingdom and Germany for casting

and forging plants. 2 Firms in Japan and U.K. for engines and 5 U.S. and U.K firms

for an integrated parts/components plant.

Hyundai enters into a licensing agreement with Giorgio Giugiaro’s Ital Design for

body styling and design.

Hyundai enters into licensing agreement with Mitsubishi for gasoline engine,

transmission, rear axle designs and casting technology.

1974

Hyundai Engineering Co. and Hyundai Motor Services Co. are set up in February.

Hyundai hires former British Leyland Motor Corp., Ltd president George Turnbull as

its vice president and six other British technical experts for a three year period (1974-

1977) for the successful development of its first indigenous model, the Pony.

Subcompact car Pony, Korea's first independently designed and manufactured model,

unveiled at the 55th Turin International Motor Fair. (The engine, transmission and

suspension were all from a previous model of the Mitsubishi Lancer and the exterior

design by Giugiaro’sItalDesign studios.)

1975

Hyundai Mipo Dockyard Co. founded in April.

The Pony (with 90% domestic content) makes Korea the second nation in Asia to

have its own domestic automobile, starts production.

Hyundai Heavy Industries wins over 900 million in construction contracts with Saudi

Arabia to build a port at Jubail.

1976

The Pony model cars, the nation’s first vehicle model, are officially released in

January.

First Pony exported.

Establishment of Korea Industrial Development Co. and Asia Merchant Marine Co. in

March, Asia Merchant Marine is later renamed, Hyundai Merchant Marine.

Hyundai Corp established in December.

Hyundai completes the construction of the Jubail, Saudi Arabia port worth $930

million. Chung saved money by using Korean parts and not insuring the shipments,

risking ruin, but the gamble paid off, making Hyundai a major player in Middle East

construction.

1977

The British engineers that help Hyundai develop the Pony left the company and

Hyundai uses moonlighting Japanese engineers to troubleshoot problems.

Chung Ju-yung is appointed chairman of the Federation of Korean Industries and

leads the organization until 1987.

Chung Ju-yung establishes Asain Foundation as well as the Hyundai Oil Refinery in

July.

Acquisition of Gukil Securities and the foundation of Hyundai Securities in

November.

1978

Hyundai starts working on the Sosan reclamation project, Chungchong-namdo, in

August. Finishes in August 1995.

Started sales of 11-ton cargo and dump trucks.

Granada (6-cylinder) debut.

Hyundai Machine Tools (a branch of the Hyundai Motor Group) established.

1980

Assembly Plant in Canada established.

Objective of the company

Mission and vision of the company

Vision

We announced "Innovation for Customers" as our mid–to long–term vision with five core

strategies: global orientation, respect for human values, customer satisfaction, technology

innovation, and cultural creation. We desire to create an automobile culture of putting

customer first via developing human–centered and environment–friendly technological

innovation.

Management Policy

Based on a respect for human dignity, we make efforts to meet the expectations of all

stakeholders including customers and business partners by building a constructive

relationship amongst management, labor, executives and employees. Also, we focus on

communicating our corporate values both internally and externally, and gaining confidence

from all stakeholders.

Mid-and Long-term Strategies

We developed five mid–and long–term strategies: global management, higher brand values, business innovation, environmental management, and strengthening product competitiveness. Especially, we selected environmental management as one of our strategies to meet the needs of our stakeholders and the society we belong to. We also intend to promote sustainability development and preservation of the environment.

Chapter - 2

Products of the company

HYUNDAI VERNA

HYUNDAI TUCSON

Hyundai CARS:

Hyundai Santro Xing

Hyundai Santro Xing launched in 2003 is the

premium hatchback car ruling this segment. The all

new Santro Xing makes the riding experience quite

exciting, as its interior boasts soft touch three

spoke steering wheel, sporty instrument cluster and

adequate storage space providing true comfort for

its riders. The fuel-economic and responsive

engine generating 63 bhp makes Santro Xing an

easy to handle car in

thick traffic.

The 'active intelligence' technology empowers the engine to think and operate at its best

under usage condition, delivering maximum power and mileage. Hyundai Santro Xing is a

jack of all trades like power efficiency, reliability and long life. The car is powered by 1086

cc Epsilon engine fired by a Distributor less Ignition System (DLI) that results in improved

fuel efficiency, reduced emission, and increased power. The everlasting e-Rlx technology

makes Santro Xing a true value for money.

SANTRO:

AE PETROL

GL PLUS

GLS F/L AUDIO

GLS F/L AUDIO

GL LPG

GLS LPG

Hyundai i10

Hyundai i10 is a premium hatchback segment model and it has gained much popularity in

Indian market since its launch in 2007. At the heart of the stylish and eye catching i10 there is

a powerful 1.1 liter iRDE(intelligent Responsive Drive Engine) petrol engine with five speed

manual transmission that generates superb output of 67 PS @ 5500 rpm. Besides this there is

also a 1.2 liter promises to deliver more mileage per liter without making a compromise on

the performance. Packed with the refreshing looks and stunning features of comfort,

performance and safety, Hyundai i10 is a best buy and a treat to drive.

Get on Hyundai i10, the first in i series from Hyundai Motor India Limited, very

innovative in design and very intelligent in drive. The all new i 10 boasts sporty and

aerodynamic looks and luxurious interiors. The flaunting body outline, wide angle washer

wiper, sunroof with slide and tilt option, easy gear shift, refined air conditioning ducts,

cockpit style sitting, deep glove box, power windows, height adjustable rear head rests all

these attributes make the i 10 truly best in its class.

i10:

D-Lite- imm

D-Lite- imm

Era-imm

Magna 1.1L

Magna (1.2)-imm

Sportz GLS (1.2)-imm

Sportz Option

Sportz AT

Asta GLS (1.2)

Asta WS GLS (1.2)

Hyundai i20

Hyundai Motor India Limited has come up with

another 05 door hatchback Hyundai i20 car to

catch the eyes of small car buyers in India. The all

new hatchback Hyundai i20 features some cool

features that distinctive from its earlier model i10.

Hyundai i20 has redesigned front facia with low

shinge grille, large headlamps and sporty fog lamps

in outside and larger space from the inside

In the phase of dipping sale figures, India's leading automaker Hyundai Motor India Limited

(HMIL), has stepped-up its existing car model i10 with the refined one i20. The all new

Hyundai i20 car model is an another addition in the company's hatchback cars stable that has

been launched with more room for the luggage, higher-quality interiors with the flexibility of

seating that is near to its predecessor i10. Hyundai i20 car was first showcased in the Paris

Motor Show 2008 and in India it was launched in the end of December 2008 meeting all

existing emission norms including the Euro-V. The newly launched Hyundai i20 car is

equipped with the latest technology 1.2 liter Kappa petrol engine that pumps out maximum

power of 80 ps @ 5200 rpms. Hyundai i20 is up for sale throughout India in three variants

with seven colors and carries the ex-showroom price range starting from 5.0 Lacs going up to

6.0 lacs for the top version.

I 20:

ERA 1.2

ERA DSL

MAGNA 1.2

MAGNA DSL

SPORTZ 1.2

SPORTZ (O)

SPORTZ DSL

SPORTZ (O) DSL

ASTA 1.2

ASTA WITH AVN

ASTA DSL

ASTA DSL WITH AVN

ASTA (O) SR

ASTA AT PETROL 1.4

ASTA AT WITH AVN

Hyundai Accent

Elegant styling, contemporary looking design, spacious and power packed performance are

the underlining features of all new Hyundai Accent Car. Offering umpteen eye-catching

features, Hyundai Motors India has equipped this luxury sedan car with host of state of the art

comfort, convenience and safety elements. Launched in both petrol and diesel variant Accent

Car is available at a very competitive price in number of sizzling color options. Hyundai

Accent has come up in new avatar called

Executive. Find out here more about Accent

Executive...

Hyundai Accent Car is the perfect example of harmony between style, luxury, power and

performance. With the launch of Accent Hyundai Motors India, India has added another

feather in the sedan cars segment of India. Powered with an advanced engine technology and

state of the art design & safety features, the all new Hyundai Accent clearly races ahead from

the others. The 1.5 SOHC in-line-4-cylinder engine delivers 94 ps of power and 12.5 kgm of

torque for the refined output. Hyundai Accent has a very powerful air-conditioning system

with the harmonized support of air-flow that keeps the interiors of the Car extremely

peaceful. For better control and the comfort while driving this sedan car has been equipped

with tilt steering wheel. With host of elegant and convenient features Hyundai Accent has

fresh looking front grille, sparkling front & rear lights and mounted stop lamps providing it a

sporty catchy looks. Available in sizzling color options, Hyundai Accent Car is available with

a price starting from Rs. 5.0 lacs.

ACCENT:

GLE EXE.1.5 L With imm.

GLE EXE LPG With imm.

Hyundai Verna

The all new Verna from India's leading car maker

Hyundai Motor has every feature which takes it

ahead in race of getting bigger share of luxury

sedan car market among other players like Honda.

Hyundai Verna boasts an egg shell design which

makes it aerodynamic from the outside and

generously spacious from inside. Available in

Petrol & Diesel version, Verna makes you feel the

power of 100 horses at work to deliver the sheer

exhilaration.

India's leading car maker Hyundai Motors has rolled out a new entrant, Verna, in the field of

luxury sedan cars which has been refined for perfection in performance, comfort and safety.

Just sit behind the wheels of Hyundai Verna and feel the sheer exhilaration from 1.6 L

DOHC petrol & 1.5 CRDi diesel engine which generates 103.2 ps and 110 ps of thrilling

power. The interiors of Hyundai Verna are generous in space, luxuriant in comfort and

convenient to handle, so you can feel the refreshing riding experience. The body line of

Verna boasts an egg shell type design which gives it an aerodynamic shape through which

you can feel the zooming power behind the wheels.

A 2-DIN music system, large alloy wheels, automatic climate control and leather wrapped

steering wheel and gear knob, rear wheel disc brakes, ABS and power-assisted steering are

few of the striking features of Hyundai Verna that you cannot ignore. The all new Hyundai

Verna is available in sizzling color options bearing a competitive price tag starting from Rs

6.50 lakh for the base petrol Verna to Rs 8.00 lakh (approx.) for the CRDi VGT model.

VERNA:-

VTVT

EON:-

The Hyundai Eon is a 5-door hatchback subcompact produced by the Hyundai Motor

Company. It was launched in 1 October 2011 in India and in March 2012 in the Philippines.

Design:-

The Eon was designed jointly between the Hyundai R&D centers in Namyang, South

Korea and Hyderabad, India. It is offered with a 814cc 3-cylinder gasoline engine that

generates 55 bhp and 75 Nm torque. Accor ding to Hyundai's Philippine distributor, the Eon

has a fuel economy rating of 26.3 kilometers per liter.

In January 2012, Hyundai India announced LPG models of Eon as well, with an additional cost of approximately INR 27000 to the available models.

Variants of EON:-

D-Lite: - This has the same features as D-Lite but has an air conditioner and full wheel

cover with Hub cap.

Era Plus - Tinted glass, body colored bumpers, metallic finish centre console, front power window, driver side central locking and electric power steering.

Magna Plus - Front and rear speaker grille, utility options like rear parcel tray, 2 DIN Radio+CD+MP3 Audio with two speakers in front, USB port, auxiliary-in port and a digital clock.

Sportz - Keyless entry, front fog lamps, driver side airbag, keyless entry, body color outside mirror and door handles, metallic finish three-spoke steering wheel unlike other variants which have a two-spoke version.

Hyundai Sonata

Hyundai Sonata Embera has added a new

dimension in the luxury sedan car segment of

India. This new offering from Hyundai is

"undoubtedly distinguished" in terms of design,

comfort and safety. Sonata Embera is

contemporary and sharp from the outside with

charismatic features from inside, i.e. more

spacious, elegant and cool. The 2.4 L VTVT

engine, with the awesome power of 165 ps, would

make your ride smoother and controlled.

The Sonata Embera has much higher fuel efficiency, courtesy its light-weight and newly-

designed engine block. The body of the vehicle looks distinctly different from its predecessor

Sonata. It is 53mm longer, 12 mm wider and 53mm higher than Hyundai Sonata. The

interiors come with plush, two-tone styling - done in beige and black.

Hyundai Tucson

Tucson's large, versatile interior and five-year/60,000-mile basic warranty make it worth a

serious look. It is a compact crossover SUV which shares its Elantra-based platform with the

redesigned 2005 Kia Sportage. It is a five door vehicle and the driver can switch between

two-wheeled and four-wheeled drive. It is well priced, well mannered, and sure to generate

interest with a refined exterior and well-done interior.

Hyundai Tucson for 2009 has been retouched with new rear and frontal garnishes. There has

also been a new wheel design incorporated as well as newly-patterned cloth seating. Cabin

materials are fine and well-assembled. Enough adult leg-room is available with split-folding

rear seats. All controls are grouped in the easy-to-reach center dashboard stack. The 65-

cubic-foot cargo space has under floor storage and a washable mat.

Roof has been fitted with railing to allow extra luggage for the passengers. The easy to grip

sleek body-colored outside door handle of Tucson lends an impressive look to its exteriors.

The round-type lamps and flame-shaped reflectors add to the elegance of its exteriors.

CHAPTER - 3

Marketing & Sales strategy of the company in Chandigarh

As companies find it harder to differentiate their physical products, they turn to service

differentiation. Companies seek to develop a reputation for superior performance in on time

delivery, better and faster answering of inquiries, and quicker resolution of complaints.

Service becomes the mantra, and many books have been written to point out the superior

profitability of companies that manage to deliver superior service.

Marketing strategies for service firms

Once service firms lagged behind manufacturing firms in their use of marketing because they

were small or professional businesses that did not use marketing, or faced large demand or

little competition; but this has certainly changed.

Three additional Ps

The traditional four Ps marketing approaches work well for goods, but additional elements

require attention in service businesses. Booms and bitner suggested three additional Ps for

service marketing people, physical evidence, and process. Because most services are

provided by people, the selection, the training, and motivation of employees can make a huge

difference in customer satisfaction. Ideally, employees should exhibit competence, a caring

attitude, responsiveness, initiative, problem –solving ability and good will.

Companies also try to demonstrate their service quality through physical evidence and

presentation. A hotel will develop a look and style of dealing with customers realizes its

intended customer value proposition, whether it is cleanliness, speed, or some other benefit.

Finally service companies can choose among different process to deliver their service.

The Price Cut

In August 2004, a leading business newspaper reported that Hyundai Motors India Limited

(HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC)3

was expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000.

Industry experts were expecting a reduction in Santro's price in response to the price war

being waged by the market leader in India – Maruti Udyog Limited (MUL), 4 which had

reduced the price of its largest selling car in the B segment - Alto - by Rs 58,000 in two price

cuts starting from September 2003. This move had resulted in Alto replacing Santro as the

largest selling car in the B segment in the period January to June 2004 (Refer Exhibit I for the

market segmentation of the Indian car industry).

Rebutting the report on price cuts, HMIL's managing director, BVR Subbu (Subbu) said, "We

are not cutting prices on the Santro. We have allowed our competitors the prerogative of

cutting prices."5 Several dealers of HMIL also felt that the company would not reduce

Santro's price as it had not adopted such tactics earlier.

Santro had been the most successful product of HMIL and was also the largest selling car in

the B segment till the fiscal year 2003-04.

Introduced in late 1998, Santro had emerged as the second largest selling car in India after

MUL's M800 and had retained its position till March 2004 (Refer Exhibit II for the total units

and value sales of the top eleven car models in India).

In mid 2004, HMIL with its four models, Santro, Accent, Sonata and Elantra, was the second

largest car company in India with 19% market share in the industry. The company was

planning to launch another model, 'Getz', in September 2004.

Analysts attributed HMIL's success to its ability to launch technologically superior products

and its innovative marketing strategies.

However, they expressed concerns that the company relied heavily on Santro and any fall in

demand for that model would hit the company.

It was felt that the introduction of new cars by the competitors and upgrading & price

reduction of existing cars in the B segment would affect Santro's sales. This would lead to a

loss in Santro's market share. (Refer Exhibit III for the comparison of features of various

models in the B segment).

Background Note

For a long time after India became independent in 1947, the car market had just two models

to offer - the sturdy 'Ambassador' from Hindustan Motors (HM) and the sleek 'Fiat' from

Premier Automobiles (PA). This was the result of Government of India's (GOI) decision to

keep the car industry tightly protected.

For HM and PA, the GOI dictated as to what type of vehicle the two companies should

manufacture. No other domestic or foreign car manufacturer was allowed to enter the Indian

car industry.

The restriction on foreign collaboration led to poor technological improvements in Indian

cars. As a result, car prices remained high while quality was inferior.

This affected the growth of the industry. The demand for cars in 1960 was 15,714 units and

in the next two decades, this rose to 30,989 units, which meant that the Compound Annual

Growth Rate (AGR) was just 3.5 per cent.

In the 1980s, the GOI felt the need to introduce an affordable small car, targeting the Indian

middle class. As manufacturing a small and affordable car required better technology than

was available indigenously, the government tied up with the noted Japanese company,

Suzuki. The government formed a joint venture with Suzuki and founded MarutiUdyog

Limited (MUL). It held 74% and Suzuki got 26% equity stake in MUL. In 1983, MUL

launched the 'Maruti 800', priced at Rs 40,000...

Hyundai's Entry in India

One of the major players that entered the Indian car market was HMC through its subsidiary

HMIL. Before making its move, the company closely studied the industry for a year. The

company's officials talked to vendors, dealers and customers to get a thorough knowledge of

the industry.

Marketing Santro

Santro received an encouraging feedback from customers who appreciated its unique design

that gave more headroom and facilitated easy entry and exit...

Launch of Accent

By mid 1999, the major players realized that the 'B' segment would be the fastest growing in

the car industry. To cash in, Telco re-launched its 'Indica' by introducing several new features

and solving the glitches in the original model...

Repositioning Santro

By late 2002, the competition in the B segment had increased significantly. MUL's Alto

which was launched in October 2000 had received a good response. Although HMIL's Santro

remained the largest selling car in the B segment, MUL commanded the largest market share

in this segment due to the combined sale of its three cars - Zen, Wagon R and Alto...

Status in 2004

The financial year 2003-04 ended on a positive note for HMIL. The company achieved

revenues of Rs 50 bn and profit after tax (PAT) of Rs. 1.90 bn in the financial year 2003-04

compared to Rs 43 bn revenues and PAT of Rs 1.65 bn in the fiscal 2002-03...

The Challenges Ahead

During the period January to June 2004, Santro lost its leadership status in the B segment...

Exhibits

Exhibit I: Segments of Indian Car Market

Exhibit II: Total Sales of Leading Car Models (2003-04)

Exhibit III: Comparison of Features of Different Models in B Segment

Exhibit IV: Market Share (in Units) of Car Models (April 2000 - January 2004)

Exhibit V: HMIL's Santro

Exhibit VI: Advertisement of Accent

Exhibit VII: Advertisements of Santro Xing

Marketing Strategy

Objectives

First year Objectives: We are aiming for 5% market share of the Indian market through unit

sale volume of 100000.

Second year Objectives: We are aiming for 10% market share of the Indian market.

An important objective will be to establish a well-regarded brand name linked to a

meaningful positioning. We will have to invest heavily in marketing to create a memorable

and distinctive brand image projecting innovation, quality and value. We also must measure

awareness and response so we can adjust our marketing efforts if necessary.

Target Markets

Hyundai Pa’s marketing strategy is differentiated marketing. Our primary consumer target is

middle to upper income professionals who need true value for their money and comfortable

ride in city conditions. Our secondary consumer target is college students who need style and

speed.

Our primary business target is midsized to large sized corporate that want to help their

managers and employees by providing them a car for ease of transport. Our secondary

business target is entrepreneurs and small business owners who want to provide discounts to

managers buying a new car.

Each of the four marketing strategies conveys Hyundai Pa’s differentiation to the target

marketing segments identified above.

Positioning

Using product differentiation we are positioning the Hyundai Pa as the most versatile,

convenient, value added car model for above target market used. The marketing strategy will

be focused on promoting the car as economic car for the next generation.

Marketing Communications

By integrating all messages in all media we will reinforce the brand name & main points of

product differentiation. Research about media consumption, pattern will help our advertising

agency to choose appropriate media and timing to reach prospects before & during the

product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain

brand awareness and communicate various differentiation messages. The agencies will also

co-ordinate public relation efforts to build Hyundai brand & support the differentiation

message. To attract market attention & encourage purchasing, we will offer a limited time,

registration & insurance. To attract, retain & motivate channel partners for a push strategy,

we will use trade sales promotions and personal selling to channel partner.

Marketing Mix

Product

Features:

The all-new “Hyundai Pa” is fully loaded with a range of exciting new features. It's a perfect

complement to your evolved tastes and lifestyle. And the best way to take your driving

pleasure to a brand-new high European styling, Japanese Engineering, and Dream-Like

Handling.

The new Hyundai Pa is a generation different from Getz and Santro design. Styled with a

clear sense of muscularity, its one-and-a-half box, aggressive form makes for a look of

stability, a sense that it is packed with energy and ready to deliver a dynamic drive.

Its solid look is complemented by an equally rooted road presence and class-defining ride

quality. New chassis systems allow for the front suspension lower arms, steering, and

gearbox and rear engine mounting to be attached to a suspension frame. You get lower road

noise and a greater feeling of stability as you sail over our roads with feather-touch ease.

Price

Hyundai is expected to take Maruti heads on with the pricing of their upcoming Hyundai Pa

car. After launching cars for the masses since so many years, India’s second largest

automobile manufacturer is now targeting the premium segment with their latest model from

the Hyundai’s stable. The analysts predict the pricing of this premium hunchback to start

from Rs. 3 lakh.

This price range would practically rip apart Maruti’s offering in Zen Estilo, which is priced at

a higher tag of Rs. 3.5 lakh. Both the companies are known for their value based offerings

and Hyundai with their extensive service network and brand reputation for making reliable

cars should get the customer’s nod over their competition.

The official pricing however is still not out. However, the company is said to be studying the

prospects of launching the base model at the 3 - lakh price tag.

If they indeed do take the chance of pricing Hyundai at a considerable lower price than Zen

Estilo, they would quite likely force the competition to rethink their strategy.

Promotion

Road Shows

The company plans to stage road shows, to display vehicles in the pavilions during various

college festivals and exhibition. This car will appeal to youngsters more.

Television advertisements

Advertisements to promote and market our product will be shown on leading television

channels. Major music and sports channels will promote and they will reach out to the youth

will be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers.

Radio

Radio is the medium with the widest coverage. Studies have recently shown high levels of

exposure to radio broadcasting both within urban and rural areas, whether or not listeners

actually own a set. Many people listen to other people's radios or hear them in public places.

So radio announcements will be made and advertisements will be announced on the radio

about the product features and price, qualities, etc.

Print Ads

Daily advertisements in leading newspapers and magazines will be used to promote the

product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas

and various other locations.

Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people aware

about the companies past performance and product features, its affordability and usage, vast

distribution network. Road shows will be conducted where free trials of the car would be

given.

Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to

promote our brand car.

Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read.

These booklets will provide information about our company; the products offered which suits

the customers need accordingly.

Marketing Strategies - HYUNDAI

The case discusses the marketing strategies of Korea based Hyundai Motor Company (HMC)

in India. HMC entered India by establishing its wholly owned subsidiary Hyundai Motors

India Limited (HMIL) in 1996. Within a year of launch of its first product - Santro, HMIL

had emerged as the second largest car company in India.

The case describes in detail the entry, product, pricing, distribution and promotional

strategies of HMIL. The case briefs the challenges faced by the company and its marketing

plans in future. It also includes a note on the Indian passenger car industry, the leading player

and its marketing strategy.

The Price Cut

In August 2004, a leading business newspaper reported that Hyundai Motors India Limited

(HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC)

was expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000.

Industry experts were expecting a reduction in Santro's price in response to the price war

being waged by the market leader in India – Maruti Udyog Limited (MUL), which had

reduced the price of its largest selling car in the B segment - Alto - by Rs 58,000 in two price

cuts starting from September 2003. This move had resulted in Alto replacing Santro as the

largest selling car in the B segment in the period January to June 2004.

Objectives

First year Objectives: We are aiming for 5% market share of the Indian market through unit

sale volume of 100000. Second year Objectives: We are aiming for 10% market share of the

Indian market.

An important objective will be to establish a well-regarded brand name linked to a

meaningful positioning. We will have to invest heavily in marketing to create a memorable

and distinctive brand image projecting innovation, quality and value. We also must measure

awareness and response so we can adjust our marketing efforts if necessary.

Target Markets

Hyundai Pa’s marketing strategy is differentiated marketing. Our primary consumer target is

middle to upper income professionals who need true value for their money and comfortable

ride in city conditions. Our secondary consumer target is college students who need style and

speed.

Our primary business target is mid sized to large sized corporates that want to help their

managers and employees by providing them a car for ease of transport. Our secondary

business target is entrepreneurs and small business owners who want to provide discounts to

managers buying a new car.

Each of the four marketing strategies conveys Hyundai Pa’s differentiation to the target

marketing segments identified above.

Positioning

Using product differentiation we are positioning the Hyundai Pa as the most versatile,

convenient, value added car model for above target market used. The marketing strategy will

be focused on promoting the car as economic car for the next generation.

Strategies

Product

Hyundai pa is fully loaded and will be sold with 3 year warranty. We will also introduce a

diesel/CNG/LPG version of Hyundai Pa in the near future. Also the high end model will have

an option of GPS system.

Price

Hyundai Pa’s base model will be introduced at ex-showroom price of 3 lakhs. This price

reflects a strategy of

1) Attracting desirable channel partners

2) Taking market share from Maruti.

Distribution

STOCKIEST to DEALERS to SUB DEALERS to BOOKING AGENTS

The Stockiest will represent 3 to 4 districts in a State.

The Dealer will represent a district or main City.

The Sub-Dealer shall represent a particular area or taluka.

The booking agents will be individuals working on freelance basis.

CHAPTER - 4

Sales and Marketing strategy of its Competitors

About the competitor Product of the competitor and comparison with product of Hyundai Comparison of strategy of Hyundai motors and its competitor.

TATA MOTORS

ABOUT THE COMPANY:

The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel

vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and

machine tools. The commercial diesel vehicles which were known ‘Tata Mercedes Benz’

(TMB) is now called ‘Tata’ vehicles after the expiry of the collaboration agreement with

Daimler-Benz AG, West Germany. The company also used to manufacture pulp and paper

making machinery.

In 1946 Tata Engineering undertook manufacture of 5000 'KC' broad gauge open wagons for

the Indian Railway. The Managing Agency Tata Sons was transferred to Tata Industries on

July 1, 1946. The Managing Agency system continued till it was abolished by an act of

Parliament in 1970.

In 1959 Tata set up its Research and Development Center set up at Jamshedpur and In 1960

The Company’s name, which was Tata Locomotive & Engineering Company Ltd., was

changed to Tata Engineering & Locomotive Company Ltd. In 1970 Consequent to the

amalgamation of Central Bank of India, Ltd., the company issued and allotted to the

shareholders of erstwhile Central Bank of India, Ltd., 11,39,208 - 7.75% mortgaged

debentures of Rs.100each on 1st October. Option was given to convert 50% of their face

value of a block of 5 debentures into one equity share of the Company at a premium of

Rs.150 per share. Consequently 3,19,825 debentures were submitted to convert 50% of their

face value into 63,965 No. of equity shares. These shares were issued on 31st March 1975.

Subsequently, 3,19,824 debentures of Rs.50 each were consolidated into 1,59,912 debentures

of Rs.100 each. As per the terms of issue, these debentures were to be redeemed at par

anytime between 1.10.1975 to 30.9.1982. In 1984 The Govt. approval was received for

increasing the vehicle manufacturing capacity to 35,520 vehicles per annum thereby bringing

the total licensed capacity to 78,000 vehicles. A letter of intent was received for setting up a

new plant for the manufacture of 9000 vehicles per annum in U.P which was later converted

into an industrial license. Collaboration with M/s Hitachi Construction Machinery Co. Ltd. ,

Japan, for manufacture of hydraulic excavators.

In 1985 All the dies and many of the machine tools and production devices required for the

new `TATA 407' and `TATA 608' series were produced by the Company in Capital Goods

Division. The company started making CNC machines in Capital Goods Division and its

engineers were receiving know-how and training from Nachi-Fujikoshi and Niigata of Japan

with whom the Company was collaborating in these fields. A new electronics centers was

also commissioned at Pune to support the manufacture and maintenance of this new

generation of CNC machines.

In 1989 The Company acquired 25% of the market share in the light commercial vehicles.

The company signed an agreement with Hitachi Construction Machinery Co.Ltd. Japan for

the manufacture of a more advanced series of hydraulic excavators i.e. `EX'series.

In 1992 during these period two new models in the EX series of hydraulic excavators were

launched. And a 10 tone pick and carry articulated crane, designed and developed in-house

was also introduced. With the help of Hitachi Construction Machinery Co. Ltd., EX-400

model Hydraulic excavator was introduced during the year. The Company undertook to

establish a joint venture with Mercedes-Benz to manufacture automobile products for sale in

India and to meet the needs of export markets. The project also included the possibility of

manufacture of a Mercedes Benz passenger car for the domestic and foreign markets.

Mercedes-Benz India Pvt. Ltd. was incorporated on November 1994 which commenced

initial assembly of cars in March 1995. During the year, company undertook to set up a joint

venture with Asian Glass Co. Ltd., Japan to manufacture float glass to be used as wind

shields for automobiles. ACC along with Tata Exports Ltd., participated in the joint venture.

The joint venture named as Float lass India Ltd., the Company would have a stake of 16.33%.

Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata Holster Ltd., Tata Precision Industries,

Singapore and Nita Company Ltd., are the joint Ventures of the Company.

In 1994 during the year company introduced the Tata SUMO and LPT 709. The company

developed a new fuel injected, 4 cylinder petrol engine with the assistance of AVL Austria.

The Company successfully launched high performance, low emission and fuel efficient

medium commercial vehicles with Cummins engines in Kuwait, Kenya, Zambia and Ghana.

The Company also proposed to introduce vehicles with cumin engines in the heavy

commercial vehicles segment. Taking advantage of the broad banding policy announced by

the Government of India, the Company entered into a collaboration agreement with Honda

Motor Co. Ltd., Japan, for the manufacture of their `ACCORD' model of cars in India.

In 1995 a new double pick-up and Army Version of various Telco Vehicles were developed.

A new pero engine and turbo diesel engine, an up-graded 709 LCV, new sports utility vehicle

Safari expected to be launched shortly. A 25 ton 6 X 2 truck and a bus with cummins engine

were launched. Tata Engineering and Locomotive Company (TELCO), has acquired a second

hand paint shop, machine line and cylinders from the Australian unit of the Japanese auto

giant, Nissan. TELCO is believed to have picked up the unit for Rs. 70 crore. The total cost

of import duty would be Rs 100 crore.

In 1998 Telco proposes to set up authorized service stations every 100 km on every highway.

The Company in its small car segment has launched "Tata Indica" which evoked an

overwhelming response in the Indian market.

In Oct 1999, the Company won the National award for R&D Efforts in Development of

Indigenous Technology in the Mechanical Engineering Industries Sector instituted by

Department of Scientific and Industrial Research, Ministry of Science and Technology for the

year 1999. The company obtained shareholders' approval for hiving off the division into a

100 per cent subsidiary, Telco Construction Equipment Company Ltd (TCECL), at an extra

general body meeting (EGM) held here in Mumbai today.

In 2004 Tata Motors launch an upgraded version Indica on January 15, 2004, in a bid to shore

up sales of the small car. In Auto Expo: Tata launched new version of Indica.

In 2006 Tata Motors launches Cliffrider. In 2007 Tata Motors has been presented the Golden

Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business

category by the Institute of Directors. Tata Motors has got a prestigious order from the Delhi

Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses.

Tata Motors is one of the largest companies in the Tata Group with a total income of US$

2.35 billion. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant

force in the Indian automobile industry. Tata Motors is India's only fully integrated

automobile manufacturer with a portfolio that covers trucks, buses, utility vehicles and

passenger cars. It would be no exaggeration to say that Tata Motors provides the wheels for

India's Growth.

Tata Motors has the unique distinction of giving India its first and only indigenously built

passenger car - The Tata Indica and the premium feature sedan - The Tata Indigo. The Indica,

launched in 1998, reached the 2,50,000 sales mark within 52 months of launch.

Tata Motors owes its leading position in the Indian automobile industry to its strong focus on

indigenization. This focus has driven the Company to set up world-class manufacturing units

with state-of-the-art technology. Every stage of product evolution-design, development,

manufacturing, assembly and quality control, is carried out meticulously. Their

manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow

in the North. Tata Motors Ltd (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM) is

a multinational corporation headquartered in Mumbai, India. Part of the Tata Group, it was

formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors

has consolidated revenue of USD 16 billion after the acquisition of British automotive

brands Jaguar and Land Rover in 2008.

It is India's largest company in the automobile and commercial vehicle sector with upwards

of 70% cumulative Market share in the Domestic Commercial vehicle segment, and had a

0.81% share of the world market in 2007 according to OICA data. The OICA ranked it as

the 19th largest automaker, based on figures for 2007 and the second largest manufacturer

of commercial vehicles in the world. The company is the world’s fourth largest truck

manufacturer, and the world’s second largest bus manufacturer. In India Tata ranks as the

leader in every commercial vehicle segment, and is in the top 3 makers of passenger cars.

Tata Motors is also the designer and manufacturer of the iconic Tata Nano, which

at INR 100,000 (ex-factory) or approximately USD 2300, is the cheapest production car in

the world. Established in 1945, when the company began manufacturing locomotives, the

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

Benz AG, which ended in 1969. Tata Motors is a dual-listed company traded on both

the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in

2005 was ranked among the top 10 corporations in India with an annual revenue

exceeding INR 320 billion.

In 2004 Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo

Commercial Vehicle, in South Korea. It also acquired Hispano Carrocera SA, now a fully-

owned subsidiary. In March 2008, it acquired the Jaguar Land Rover (JLR) business from

the Ford Motor Company, which also includes the Daimler and Lanchester brands and the

purchase was completed on 2 June 2008.

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar, Lucknow, Ahmadabad, Sanad and Pune in India, as well as in

Argentina, South Africa and Thailand.

Product Range:

Tata (Sedan): Popular Tata sedan car prices start with Tata cars at a bit below rupees four

lakhs to Tata cars at a bit above rupees eight lakhs. Tata sedan cars include.

Tata Indigo (Sedan): Tata Indigo is India's first Sedan model - a mid size C' segment

completely indigenous sedan. For the price that it is offered, this model is equipped with a

host of features that offer extravagant comfort and imposing luxury, offering complete value

for money. Tata (Sedan) The Tata Indigo with its petrol and diesel variants targets the

middle class consumer with Tata Sedan cars between rupees four and eight lakhs. Tata

Indigo variants include.

A. Indigo CS GLE (Petrol): The Indigo CS GLE is the base level version in the Indigo

CS range of Tata Motors. New cars have a show room price of around Rs.3,80,000

and on-road price of around Rs.4,15,000 inclusive of all charges such as insurance,

octroi, RTO, etc. Indigo CS GLE car prices vary with the car dealer's location.

B. Indigo CS GLS (Petrol): The Indigo CS GLS is the upper level version with higher

price in the Indigo CS range of Tata Motors. New cars in this series have a showroom

price ranging from around four lakhs to around four lakhs fifty thousand inclusive of

all charges like insurance, octroi, RTO, etc.

C. Indigo CS LE (Diesel): The Indigo CS LE is the higher level version in the Indigo CS

range of Tata Motors featuring diesel transmission. At the showroom, this car costs

around Rs.4,20,000 with an on-road price of around Rs.4,60,000. This includes

standard ancillary charges also.

D. Indigo CS LS (Diesel): The Indigo CS LS is the top level version with higher price in

the Indigo CS range of Tata Motors. The Indigo CS LS is now available at a

showroom price of around Rs.4,50,000 with an on road price of around Rs.4,95,000

including supplementary charges.

E. Indigo GV (Petrol): Indigo GV is the entry level petrol variant of the Indigo series.

New cars have a show room price of around Rs. 3,85,000 and on-road price of around

Rs. 4,30,000 inclusive of all charges such as insurance, octroi, RTO, etc.

F. Indigo GVE (Petrol): This variant of the Indigo V series is packed with superior

looks and features as available in its segment. New cars in this series have a

showroom price ranging from around three lakhs to around four lakhs inclusive of all

charges like insurance, octroi, RTO, etc. Fiesta 1.4 Duratec Zxi car prices vary with

the car dealer's location.

G. Indigo V (Diesel): Indigo V is marked for its advanced technology and impressive

performance. At the showroom, this car costs around Rs 4,30,000 with an on-road

price of around Rs.4,80,000. This includes standard ancillary charges also.

H. Indigo GVS (Petrol): Indigo GVS is equipped with advanced features and facilities to

provide you with maximum comfort and control. The Indigo GVS (Petrol) is now

available at a showroom price of around Rs.4,35,000 with an on road price of around

Rs.4,85,000 including supplementary charges.

I. Indigo VE (Diesel): The perfect combination of power, style and performance is

Indigo VE. New cars have a show room price of around Rs.4,45,000 and on-road

price of around Rs.5,00,000. Indigo VE car prices vary with the car dealer's location.

J. Indigo GLS (Petrol): New cars in this series have a showroom price ranging from

around four lakhs to around five lakhs inclusive of all charges like insurance, octroi,

RTO, etc. Fiesta 1.4 Duratec Zxi car prices vary with the car dealer's location.

K. Indigo VS (Diesel): At the showroom, this car costs around Rs.4,65,000 with an on-

road price of around Rs.5,21, 000. This includes standard ancillary charges also.

L. Indigo GLX (Petrol): The Indigo GVS (Petrol) is now available at a showroom price

of around Rs.4,90,000 with an on road price of around Rs.5,45,000 including

supplementary charges.

M. Indigo LS (Diesel): The advanced technology engine, attractive looks and decent

performance makes Indigo LS different from others in its segment. New cars have a

show room price of around Rs.4,90,000 and on-road price of around Rs.5,50,000.

Indigo LS car prices vary with the car dealer's location.

N. Indigo XL (Petrol): New cars in this series have a showroom price ranging from

around 5.30 lakhs to around 5.90 lakhs inclusive of all charges like insurance, octroi,

RTO, etc. Indigo XL car prices vary with the car dealer's location.

O. Indigo LX (Diesel): At the showroom, this car costs around Rs.5,30,000 with an on-

road price of around Rs.5,95, 000. This includes standard ancillary charges also.

P. Indigo LS Dicor (Diesel): The Indigo GVS (Petrol) is now available at a showroom

price of around Rs.5,35,000 with an on road price of around Rs.5,95,000 including


Q. Indigo LX Dicor (Diesel): The Indigo LS Dicor is the mid level variant in this series

with top range price tag and high end features. New cars in this series have a

showroom price ranging from around 5.80 lakhs to around 6.50 lakhs inclusive of all

charges like insurance, octroi, RTO, etc. Indigo LX Dicor car prices vary with the car

dealer's location.

R. Indigo XL (Diesel): This diesel variant of the Indigo collection is now available at a

showroom price of around Rs.6,20,000 with an on road price of around Rs.6,85,000


S. Indigo XL Grand (Petrol): The entry level grand version of Indigo model is equipped

with impressive interiors and all the latest features available in its segment. New cars

have a show room price of around Rs.6,70,000 and on-road price of around

Rs.7,45,000. Indigo XL Grand car prices vary with the car dealer's location.

T. Indigo XL Grand (Diesel): New cars in this series have a showroom price ranging

from around seven lakhs to around eight lakhs inclusive of all charges like insurance,

octroi, RTO, etc. Indigo XL Grand car prices vary with the car dealer's location.

Tata (SUV): Popular Tata SUV car prices begin with Tata SUVs at a bit above rupees four

lakhs fifty thousand to Tata SUVs at a bit below rupees ten lakhs. Tata SUV models include.

Tata Sumo (SUV): The Tata Sumo is now renamed as Tata Sumo Victa with vastly

improved features and design. Tata (SUV) The Tata Sumo with its petrol and diesel variants

targets the middle class consumer with Tata SUV cars between rupees four and seven lakhs.

Tata Sumo variants include.

A. Sumo CX-10 Seater (Diesel): Sumo CX-10 Seater boasts for its space and power

features. New cars in this series have a showroom price ranging from around five

lakhs to around six lakhs inclusive of all charges like insurance, octroi, RTO, etc.

Indigo XL Grand car prices vary with the car dealer's location.

B. Sumo Victa LX (Diesel): Sumo Victa LX is the entry level variant of the upgraded

model of Tata Sumo. New cars have a show room price of around Rs.5, 33,000 and

on-road price of around Rs.6, 00,000. Sumo Victa LX car prices vary with the car

dealer's location.

C. Sumo Victa EX (Diesel): New cars in this series have a showroom price ranging

from around five lakhs to around six lakhs inclusive of all charges like insurance,

octroi, RTO, etc. Sumo Victa EX car prices vary with the car dealer's location.

D. Sumo Victa GX 7 Seater (Diesel): Sumo Victa GX 7 Seater (Diesel) throws an open

challenge to others in its segment for space, power and performance. The Sumo Victa

GX is now available at a showroom price of around Rs.6,24,000 with an on road price

of around Rs.7,00,000 including supplementary charges.

E. Sumo Victa Gx 8 Seater (Diesel): Sumo Victa GX 8 Seater (Diesel) throws an open

challenge to others in its segment for space, power and performance. At the

showroom, this car costs around Rs.6,30,000 with an on-road price of around

Rs.7,00,000.

Tata Safari (SUV): The Tata Safari is the first SUV indigenously developed in India. One

might consider it a bit obese and massive, but the Safari is a model to reckon with, due to its

symbolism with the indigenous effort. Tata (SUV) The Tata Safari with its diesel variants

targets the middle class consumer and offers Tata SUV cars between rupees seven and nine

lakhs. Tata Safari variants include.

A. Safari DL 4 x2 LX TCIC (Diesel): Safari DL 4 x2 LX TCIC is the entry level variant

of the upgraded model of Tata Sumo. New cars have a show room price of around

Rs.6,51,000 and on-road price of around Rs.7,30,000. Safari DL 4 x2 LX TCIC car

prices vary with the car dealer's location.

B. Safari DiCOR LX 4x2 (Diesel): New cars in this series have a showroom price

ranging from around seven lakhs to around eight lakhs inclusive of all charges like

insurance, octroi, RTO, etc. Safari DiCOR LX 4x2 car prices vary with the car

dealer's location.

C. Safari DiCOR Exi 4x2 (Petrol): This variant is packed with attractive looks, powerful

engine and everlasting performance and reliability features. At the showroom, this

car costs around Rs.8,24,000 with an on-road price of around Rs.9,23,000. This

includes standard ancillary charges also.

D. Safari DiCOR EX 4x2 (Diesel): Safari DiCOR EX 4x2 is equipped with sporty looks

and attractive features. The Safari DiCOR EX 4x2 is now available at a showroom



E. Safari DiCOR LX 4x4 (Diesel): This variant is packed with attractive looks, powerful

engine and everlasting performance and reliability features. New cars have a show

room price of around Rs.8,53,000 and on-road price of around Rs.9,60,000.

F. Safari DiCOR EXI 4X4 (Petrol): New cars in this series have a showroom price

ranging from around nine lakhs to around ten lakhs inclusive of all charges like

insurance, octroi, RTO, etc. Safari DiCOR LX 4x2 car prices vary with the car

dealer's location.

G. Safari DiCOR EX 4X4 (Diesel): Safari DiCOR EX 4X4 promises enduring

performance and complete reliability with its robust looks and powerful engine. At

the showroom, this car costs around Rs.9,14,000 with an on-road price of around

Rs.10,23,000. This includes standard ancillary charges also.

H. Safari DiCOR VX 4X2 (Diesel): Safari DiCOR VX 4x2 is equipped with sporty

looks and attractive features. New cars have a show room price of around

Rs.10,25,000 and on-road price of around Rs.11,47,000. Safari DiCOR VX 4X2

(Diesel) car prices vary in lakhs upon the car dealer's location.

I. Safari DiCOR VX 4X4 (Diesel): Safari DiCOR VX 4X4 boasts for advanced

technology engine and attractive looks. At the showroom, this car costs around

Rs.11,19,000 with an on-road price of around Rs.12,51,000. This includes standard

ancillary charges also.

Tata Winger (SUV): The Tata Winger is a versatile maxi van based on an older generation

Renault van - Traffic. It is designed to seat 9 to 13 passengers with generous interior space,

more head and leg room, and a wide luggage space. The new Winger takes care of passenger

comfort by providing all front facing seats that are equipped with magazine pockets, bottle

holders, spot lamps, grab handles, and a music system.

A. Winger Luxury Long WB Flat Roof AC (Diesel): The Winger Luxury is the top most

variant in the Winger family. It has top range price tag along with several features.

The mode has nine individual bucket seats with adjustable headrest, armrest and seat

belts. Body colored exteriors add up to its attractive looks. It is the ideal vehicle for

its pleasure trips to nearby destination, corporate and business use and for large

families also. The plush car like interiors provides a good ambience of luxury as well

as space.

B. Winger Designer Car by Dilip Chhabria: Recently launched Tata Winger got rave

reviews from all over the world. Offering mobility for passengers, this vehicle can

take care of corporate, school, and institutional requirements. Safety apart, brightly lit

interiors, cool ambience and plush furnishing provide an incentive to passengers who

always seek to avoid the drudgery of city or long distance travels.

Tata (Hatchback): Popular Tata hatchback car prices begin from Tata hatchback cars at a

bit above rupees two lakhs eighty thousand to Tata hatchbacks at a bit above rupees four

lakhs seventy-thousand. Popular Tata hatchback models include.

Tata Indica (Hatchback): The most desirable car of the Indian auto market for its great

styling, price and low maintenance. Tata (Hatchback) The Tata Indica with its diesel variants

targets the middle class consumer and offers an on-road price range between rupees two and

five lakhs. Tata Indica variants include.

A. Indica Xeta GLE (Petrol): New cars in this series have a showroom price ranging from

around two lakhs to around three lakhs inclusive of all charges like insurance, octroi,

RTO, etc. Indica Xeta GLE (Petrol) car prices vary with the car dealer's location.

B. Indica Xeta GLS (Petrol): The midsized Indica Xeta GLS hatchback throws a tough

competition in its segment for its economical price range with exclusive features. At the



C. Indica Xeta GLG (Petrol): This petrol variant of Indica Xeta possesses classy looks and

powerful engine. The Indica Xeta GL is now available at a showroom price of around

Rs.3,20,000 with an on road price of around Rs.3,55,000 including supplementary

charges.

D. Indica V2 DLE (Diesel): Indica V2 DLE promises enduring performance and complete

reliability with its attractive looks and powerful engine. At the showroom, this car costs

around Rs.3,42,000 with an on-road price of around Rs.3,83,000. This includes standard


E. Indica Xeta GLX (Petrol): The perfect combination of power, style and performance is

Indica Xeta GLX. The Indica Xeta GLX is now available at a showroom price of around

Rs.3,45,000 with an on road price of around Rs.3,86,000 including supplementary

charges.

F. Indica V2 DLS (Diesel): The advanced technology engine, attractive looks and decent

performance makes Indica V2 DLS different from others in its segment. New cars have a

show room price of around Rs.3,60,000 and on-road price of around Rs.4,00,000. Indica

V2 DLS car prices vary with the car dealer's location.

G. Indica Dls Turbo (Diesel): New cars in this series have a showroom price ranging from

around three lakhs to around four lakhs inclusive of all charges like insurance, octroi,

RTO, etc. Indica Xeta GLE (Petrol) car prices vary with the car dealer's location.

H. Indica Dlg Turbo (Diesel): The advanced technology engine, attractive looks and decent

performance makes Indica DLG Turbo different from others in its segment. At the



I. Indica Dlx Turbo (Diesel): The advanced technology engine, attractive looks and decent

performance makes Indica DLG Turbo different from others in its segment. The Indica

Xeta GLX is now available at a showroom price of around Rs.4,10,000 with an on road

price of around Rs.4,60,000 including supplementary charges.

Tata Wagons: Tata wagons have always held a special place in the market. Currently, Tata

markets only one model, the Tata Indigo Marina, across seven variants including both diesel

and petrol.

Tata Indigo Marina (Wagon): The Tata Marina is essentially modeled on the lines of a

station wagon that combines the luxury of the sedan along with the roomy features and

sizeable appearance of a MUV. Tata Wagons The Tata Indigo Marina with its diesel variants

targets the middle class consumer and offers Tata wagon cars between rupees five and seven

lakhs. Tata Indigo Marina variants include.

A. Indigo Marina GLS (Petrol): Indigo Marina GLS is the entry level variant of the

Indigo model equipped with impressive interiors and all the latest features available in

its segment. New cars have a show room price of around Rs.4,55,000 and on-road

price of around Rs.5,10,000. Indigo Marina GLS car prices vary with the car dealer's

location.

B. Indigo Marina GLX (Petrol): New cars in this series have a showroom price ranging

from around four lakhs to around five lakhs inclusive of all charges like insurance,

octroi, RTO, etc. Indigo Marina GLX (Petrol) car prices vary with the car dealer's

location.

C. Indigo Marina LS (Diesel): Indigo Marina LS promises enduring performance and

complete reliability with its decent looks and powerful engine. At the showroom, this

car costs around Rs.5,00,000 with an on-road price of around Rs.5,65,000. This

includes standard ancillary charges also.

D. Indigo Marina LX (Diesel): Indigo Marina LX is marked for its advanced technology

and impressive performance. The Indigo Marina LX is now available at a showroom



E. Indigo Marina GSX (Petrol): Indigo GSX is desirable for its eye-catching looks and

high fuel efficiency. New cars have a show room price of around Rs.5,70,000 and on-

road price of around Rs.6,40,000. Indigo Marina GSX car prices vary with the car

dealer's location.

F. Indigo Marina Lx Dicor (Diesel): Indigo Marina Lx Dicor wins millions of heart of

the Indian customers with its elite exterior as well as interior features. At the



SKODA

At the beginning of December 1895 the mechanic Václav Laurin and the book-seller Václav

Klement, both bicykle enthusiasts, started manufacturing bycycles of thein own design,

patriotically named Slavia in the nationalist atmosphere of the ond of the 19th century. A few

years later, in 1899, the Laurin & Klement Co. began producing motorcycles, wich were soon

succesful and gained several racing victories. After initial experiments at the turn of century,

producing of motorcycles was gradually replaced by automobiles form 1905 onward.

Like the motor cycles, the 1st Laurin & Klement automobile, the Voiturette A was a full

success, later becoming the archetype of Czech automobile classic. It soon formed a stable

position for Company in the developing international automobile market, so that the

Company could soon start operating on a wide scale. The volume of the production increased

and soon exceeded the potential of a private enterprise, and in 1907 the founders of the

Company initiated conversion to a joint-stock company. The international character of

Skoda’s operations became increasingly important. The production facilities were extended

constantly and after 1914, Skoda took part in the production for the armed force.

Due to the country’s economic development, the joint venture with a strong industrial partner

became essential in the nineteen twenties in order to strengthen and modernize the Company,

which was at that time producing numerous types of passenger cars, trucks, busses, airplane

engines and agricultural machinery. In 1925, fusion with the Pilsen Skoda Co. was

accomplished, marking the end of the Laurin & Klement trademark. In early 1930s, the

automotive business was again organized as a separate joint-stock company within the Skoda

Group (Automobile Industry Co., ASAP). After the crisis, the Company achieved a break-

through with the Type Skoda Popular.

The German occupation in 1939 to 1945 caused a considerable disruption in the history of the

company, which was integrated into the industrial structure of the German Empire. The

civilian production programme was immediately limited and production was turned to its

needs. In the course of a large-scale nationalization which began immediately after the end

of the war, the Company became a national enterprise named AZNP in 1946. Within the

political and economic changes of that time, it acquired the monopoly of passenger car

production.

Based on the traditional production processes and past success, the Czechoslovak economy

managed to maintain a relatively good standard in the post/socialist period for several

decades, in spite of the changes brought about by planned economy and efforts at unduly

rapid growth. This standard only became questionable towards the end of the nineteen sixties

due to development of new technology in the western world. The permanent stagnation of

the economy started after the seventies, also affecting the Mladá Boleslav automobile

manufacturer in spite of the company’s leading position in the East Europe marker.

Production grew again only when the model range Škoda Favorite went into production in

1987.

After the political changes of 1989, under the new market economy conditions the

Government of the Czechoslovak Republic and the management of Skoda began to search for

a strong foreign partner whose experience and investments would be capable of securing

long-range international competitiveness of the company. In December 1990, the

Government decided on cooperation with the German Volkswagen Group. The Skoda –

Volkswagen joint venture began to operate on 16 April 1991 under the name Skoda,

automobile. As becoming the fourth brand of the Volkswagen Group alongside VW, AUDI a

SEAT. The Skoda Auto is firm on retaining its brand positioning in the luxury segment

despite such claims from VW. According to the GM (sales & Marketing) of Skoda, the

company doesn’t want to dilute the position in India and is not in a bid to get identified in the

mass segment. Skoda likes to have an individual identity for its own by providing quality of

unique value proposition. This does not purport to the association with VW, he said. As a

measure of consolidation, the company has initiated boutique outlets to retail its products,

differing from the conventional dealership showrooms.

These outlets, novel in cities, will display lifestyle combined with contemporary ambience

fascinating the customers, he said further. 15 new such outlets will be opened in select cities

in India this year and this will take the net outlets to 75. Skoda outlets will deal with

merchandise and followed by genuine accessories. The target for 2010 is 20000 units from

15000 units of 2009, by adding new model Yeti SUV to its portfolio during the second half of

this year. This Yeti, to be assembled at Aurangabad unit, will get the power of 2.0lit diesel

engine. Skoda’s current range in India consists of Skoda Superb, Skoda Octavia, Skoda

Laura and Skoda Fabia.

The perception of Skoda in Western Europe has changed completely since the takeover by

VW, in stark comparison to the reputation of the cars throughout the 1980s—often described

as 'the laughing stock' of the automotive world. As technical development progressed and

attractive new models were brought to market, Skoda's image was initially slow to improve.

In the UK, a major turnabout was achieved with the ironic "It is a Skoda, honest" campaign,

which was started in the early 2000s. In a 2003 advertisement on British television, a new

employee on the production line is fitting Skoda badges on the car bonnets. When some

attractive looking cars come along he stands back, not fitting the badge, since they look so

good they cannot be Skoda. This market campaign worked by confronting Skoda's image

problem head-on—a tactic which marketing professionals regard as high risk. Before the

advertising campaign, it was common to hear tour guides in Bratislava making jokes about

the Skoda, saying "How do you double the value of a Skoda? Fill up the gas tank!" If the

Fabia and Octavia had been anything less than excellent cars the campaign might have

backfired badly. By 2005 Skoda was selling over 30,000 cars a year in the UK, a market

share of over 1%. For the first time in its UK history, a waiting list developed for deliveries

by Skoda. Skoda owners in the UK have consistently ranked the brand at or near the top of

the J.D. Power customer satisfaction survey during the 2000s.

As of 2010 Skoda has several manufacturing and assembly plants, including one

in Sarajevo, Bosnia and Herzegovina. Skoda also has an assembly plant in the city

of Aurangabad, in the western Indian state of Maharashtra which was established in 2001

as Skoda India Private Ltd.

In 2006 Skoda presented its brand new model Roomster, which is a small MPV with a unique

design, which reflects future trends. At the end of December 2006 Skoda released the first

official pictures of the new Fabia, a model that would replace the Fabia in 2007.

Later in 2008 Skoda released the first pictures of the face-lifted Octavia with new headlights,

front grille and bumper, as well as a slightly restyled rear and interior. The revised car also

features a new selection of engines including the 1.4 TFSI and new common rail diesel

engines.

A new concept car was presented at the Paris Auto Show in September 2006. The concept

was called Joyster, a three-door compact car intended especially for young people.

Volkswagen Group's Australian arm, Volkswagen Group Australia (VGA), recently

announced that they would be returning Skoda, last sold in Australia in 1983, to the

Australian car market in October, 2007. As of 2010 the Octavia, Roomster and Superb are

available in Australia. VGA have stated they will only bring the Fabia onto the Australian

market if they are able to price it below the Volkswagen Polo.

It is rumored that a version of the low-cost subcompact Brazilian Volkswagen Gol NF will be

a new base model for Skoda in Europe.

Skoda started production in China in 2006. Its 2009 China sales more than doubled from

2008, reaching 123,000 vehicles. Shanghai Volkswagen plans to build Yeti SUV in 2011

Popular cars of Skoda which is available in India:

Skoda (Hatchback): Popular Skoda Fabia models range in on-road price from below rupees

seven lakhs to a bit above rupees eight lakhs.

1. Skoda Fabia (Hatchback): Skoda Fabia is luxurious hatchback model from the world

class Skoda collection now available in India. Its style and substance make it a sure

competitor to other C segment Sedan cars in the market. The Skoda Fabia offers an

on-road price range between rupees seven and eight lakhs. Skoda Fabia is available

in different engine specifications like diesel and petrol.

A. Fabia Classic (Diesel): Skoda Fabia Classic is revolutionary model born in the Skoda

hatchback family is available at a showroom price of around Rs.6,67,191 with an on

road price of around Rs.7,30,786 including supplementary charges.

B. Fabia Ambiente (Diesel): Skoda Fabia Ambiente gives tough competition to sedan

species in the market with its superior looks and striking features. New cars have a

show room price of around Rs.7,43,627 and on-road price of around Rs.8,14,066.

C. Fabia Elegance (TDI) (Diesel): Skoda Fabia Elegance TDI is a luxury hatchback

packed with excellent features and born with diesel engine. At the showroom, this car

costs around Rs.7,92,686 with an on-road price of around Rs.8,67,462.

D. Fabia Elegance (MPI) (Petrol): Skoda Fabia Elegance MPI is a luxury hatchback

packed with excellent features and born with petrol engine. At the showroom, this car

costs around Rs.6, 99,932 with an on-road price of around Rs.7, 66,510.

Skoda (Sedan): Popular Skoda sedan car prices start from Skoda cars at a bit below rupees

eight lakhs to Skoda cars at a bit above rupees ten lakhs.

2. Skoda Octavia (Sedan): Skoda Octavia is well known for its classy looks and cost

effective features. This master piece boasts for its unbeatable style and performance.

Skoda (Sedan) The Skoda Octavia with its petrol and diesel variants targets the

middle class consumer and offers Skoda car prices between rupees twelve and fifteen

lakhs.

A. Octavia Rider 1.8 Turbo (Petrol): Octavia Rider 1.8 Turbo is packed with trendy

design and various attractive features. New cars have a show room price of around

Rs.11,15,000 and on-road price of around Rs.12,50,000 inclusive of all charges such

as insurance, octroi, RTO, etc. Skoda Octavia Rider 1.8 Turbo (Petrol) car prices

vary in lakhs upon the car dealer's location.

B. Octavia Rider 1.9 TDI (Diesel): New cars in this series have a showroom price

ranging from around eleven lakhs to around twelve lakhs. Octavia Rider 1.9 TDI car

prices vary with the car dealer's location.

C. Octavia Elegance 1.9 TDI (Diesel): The Octavia Elegance 1.9 TDI (Diesel) is now

available at a showroom price of around Rs.12, 82,000 with an on road price of

around Rs.14,35,000 including supplementary charges.

D. Octavia 1.8 RS Turbo (Petrol): New cars have a show room price of around Rs.13,

50,000 and on-road price of around Rs.15, 10,000. Skoda Octavia 1.8 RS Turbo

(Petrol) car prices vary in lakhs upon the car dealer's location.

E. Octavia L& K (Diesel): At the showroom, this car costs around Rs.14, 00,000 with

an on-road price of around Rs.15, 67, 000. This includes standard ancillary charges

also.

3. Skoda Laura (Sedan): Skoda Laura, a stablemate of Skoda Octavia, Laura is popular

for its contemporary, dynamic designer looks. Specially customized, the model has

stood the test of times in Indian conditions with its extraordinary performance giving

results beyond imagination. Skoda (Sedan) The Skoda Laura with its diesel variants

targets the middle class consumer with Skoda car prices between rupees sixteen and

nineteen lakhs.

A. Laura Elegance (Diesel): Passionately designed interiors, is what makes this

vivacious beauty, a truly comfort zone to indulge in. New cars have a show room

price of around Rs.14, 74,000 and on-road price of around Rs.16, 50,000. Skoda

Laura Elegance (Diesel) car prices vary in lakhs upon the car dealer's location.

B. Laura L and K (Manual) (Diesel): New cars in this series have a showroom price

ranging from around sixteen lakhs to around eighteen lakhs inclusive of all charges

like insurance, octroi, RTO, etc. Laura L and K car prices vary with the car dealer's

location.

C. Laura L and K AT (Diesel): At the showroom, this car costs around Rs.16,75,000

with an on-road price of around Rs.18,72,000. This includes standard ancillary

charges also.

4. Skoda Superb (Sedan): Skoda Superb is flagship model of Skoda and an automobile

wonder. Just the look of it, makes you want it more than your next heartbeat. Skoda

(Sedan) The Skoda Superb with its petrol and diesel variants targets the upper middle

class consumer with Skoda car prices between rupees twenty two and twenty five

lakhs.

A. Superb 2.8 V6 (Petrol): New cars have a show room price of around Rs.20, 30,000

and on-road price of around Rs.22, 70,000. Skoda Superb 2.8 V6 (Petrol) car prices

vary in lakhs upon the car dealer's location.

B. Superb 2.5 V6 Tdi (Diesel): New cars in this series have a showroom price ranging

from around twenty two lakhs to around twenty four lakhs. Laura L and K car prices

vary with the car dealer's location.

5. Skoda (Wagon): Popular Skoda wagon car prices start from Skoda wagons at a bit

above rupees fifteen lakhs to Skoda wagons at a bit below rupees sixteen lakhs twenty

thousand.

A. Skoda Octavia (Wagon): Skoda's extra bit of car in every single model, inescapably

reflects in Skoda Octavia (wagon) again. Skoda (Wagon) The Skoda Octavia with its

petrol and diesel variants targets the middle class consumer with Skoda wagon car

prices between rupees fifteen and sixteen lakhs.

B. Octavia Combi 1.8 RS Turbo (Petrol): The Octavia Combi 1.8 RS Turbo is now

available at a showroom price of around Rs.14, 00,000 with an on road price of

around Rs.16,00,000 including supplementary charges.

TOYOTA

Toyota Motor Corporation was Japan’s largest car company and the world’s third largest by

the year 2000. The company was producing almost five million units annually in the late

1990s and controlled 9.8 percent of the global market for automobiles. Although its profits

declined substantially during the global economic downturn of the early 1990s, Toyota

responded by cutting costs and moving production to overseas markets. The company

represented one of the true success stories in the history of manufacturing, its growth and

success reflective of Japan’s astonishing resurgence following World War II.

In 1930:

The Emergence of Japanese Automobile Manufacturing in the 1930s and 1940s.In 1933 a

Japanese man named Kiichiro Toyoda traveled to the United States, where he visited a

number of automobile production plants. Upon his return to Japan, the young man

established an automobile division within his father’s loom factory and in May 1935

produced his first prototype vehicle. General Motors and Ford already were operating

assembly plants in Japan, but U.S. preeminence in the worldwide automotive industry did not

deter Toyota.

Since Japan had very few natural resources, the company had every incentive to develop

engines and vehicles that were highly fuel efficient. In 1939, the company established a

research center to begin work on battery-powered vehicles. This was followed in 1940 by the

establishment of the Toyota Science Research Center (The nucleus of the Toyota Central

Research and Development Laboratories, Inc.) and the Toyota Works. The next year Toyota

Machine Works, Ltd. was founded for the production of both machine tools and auto parts.

As Japan became embroiled in World War II, the procurement of basic materials for

automobile manufacturing became more and more difficult. At one point Toyota was

manufacturing trucks with no radiator grills, brakes only on the rear wheels, wooden seats,

and a single headlight. Pushing toward the limits of resource conservation as the course of

the war began to cripple Japan’s economy the company started piecing together usable parts

from wrecked or worn-out trucks in order to build ‘recycled’ vehicles.

When the war ended in August 1945 most of Japan’s industrial facilities had been wrecked,

and the Toyota (or Toyota as it became known after the war) production plants had suffered

extensively. The company had 3,000 employees but no working facilities, and the economic

situation in Japan was chaotic. But the Japanese tradition of dedication and perseverance

proved to be Toyota’s most powerful tool in the difficult task of reconstruction.

Postwar Challenges and Innovations: The Birth of the Small Car Just as the Japanese motor

industry as a whole was beginning to recover, there was mounting concern that American and

European auto manufacturers would overwhelm the Japanese market with their economic and

technical superiority. Japan’s automakers knew that they could no longer count on

government protection in the form of high import duties or other barriers as they had before

the war.

Since American manufacturers were concentrating their efforts on medium-sized and larger

cars, Toyota’s executives thought that by focusing on small cars the company could avoid a

head-on market confrontation. Kiichiro Toyoda likened the postwar situation in Japan to that

in England. ‘The British motorcar industry, he said, ‘also faces many difficulties, but its fate

will be largely determined by how strongly American automakers feel they should

concentrate on small cars. It was January 1947 when Toyota engineers completed their first

prototype for a small car: its chassis was of the backbone type (never used before in Japan),

its front suspension relied primarily on coil springs, and its maximum speed was 54 miles per

hour. After two years of difficulties the company seemed headed for success.

This was not to be accomplished as easily as expected, however. Two years later, in 1949,

Toyota suffered its first and only serious conflict between labor and management. Nearly

four years had passed since the end of the war, but Japan’s economy was still in poor shape:

goods and materials of all kinds were in short supply, inflation was rampant, and people in

the cities were forced to trade their clothing and home furnishings for rice or potatoes to

survive. That year the Japanese government took measures to control runaway inflation in

ways that severely reduced consumer purchasing power and worsened the already severely

depressed domestic automotive market.

Japanese auto manufacturers found themselves unable to raise the funds needed to support

their recovery efforts, for the new governmental policy had discontinued all financing from

city banks and the Reconstruction Finance Corporation.

Under these conditions the company’s financial situation deteriorated rapidly. In some

months, for example, the company produced vehicles worth a total of ¥350 million while

income from sales reached only ¥250 million. In the absence of credit sources to bridge the

imbalance, Toyota soon was facing a severe liquidity crisis. In large part because of wartime

regulations and controls, Toyota had come to place strong emphasis on the production end of

the business, so that in the early postwar years not enough attention had been paid to the

proper balance between production and sales. The Japanese economy at that time was

suffering from a severe depression, and because the Toyota dealers were unable to sell cars in

sufficient quantities, these dealers had no choice but to pay Toyota in long-term promissory

notes as inventories kept accumulating.

Finally, Toyota was unable to meet its regular payroll. Delayed payments were followed by

actual salary reductions and then by plans for large-scale layoffs–until April 1949, when the

Toyota Labor Union went on strike. Negotiations between labor and management dragged

on with the union leaders bitterly opposed to any layoffs. As a result, Toyota was compelled

to reduce both production and overhead. Workers staged demonstrations to press their

demands, and all the while Toyota kept falling further into debt, until the company finally

found itself on the verge of bankruptcy.

Production dropped to 992 vehicles in March 1949, to 619 in April, and to 304 in May.

Crucial restructuring efforts included a proposal to incorporate Toyota’s sales division as a

separate company, leading eventually to the formation of Toyota Motor Sales Company Ltd.

in April 1950. Toyota Motor Sales Company handled all domestic and worldwide marketing

of Toyota’s automotive products until July 1982, when it merged with Toyota Motor

Company.

In the meantime, discussions between labor and management finally focused on whether to

admit failure, declare bankruptcy, and dissolve the company, or to agree on the dismissal of

some employees and embark upon a rebuilding program. In the end management and labor

agreed to reduce the total workforce from 8,000 to 6,000 employees, primarily by asking for

voluntary resignations. At the management level, President Kiichiro Toyoda and all of his

executive staff resigned. Kiichiro, Toyota’s founder and a pioneer of the Japanese automotive

industry, died less than two years later.

Not long after the strike was settled in 1950, two of the company’s new executives, Eiji

Toyoda (now chairman of Toyota Motor Corporation) and Shoichi Saito (later chairman of

Toyota Motor Company), visited the United States. Seeking new ideas for Toyota’s

anticipated growth, they toured Ford Motor Company’s factories and observed the latest

automobile production technology. One especially useful idea they brought home from their

visit to Ford resulted in Toyota’s suggestion system, in which every employee was

encouraged to make suggestions for improvements of any kind. On their return to Japan,

however, the two men inaugurated an even more vital policy that remained in force at Toyota

through the 1990s: The continuing commitment to invest in only the most modern

production facilities as the key to advances in productivity and quality. Toyota moved

quickly and aggressively in the 1950s, making capital investments in new equipment for all

of the company’s production facilities. Not surprisingly, the company began to benefit from

the increased efficiency almost immediately. Along with improvements in its production

facilities, Toyota also worked to develop a more comprehensive line of vehicles to contribute

toward the growing motorization of Japanese society. During 1951, for example, Toyota

introduced the first four-wheel-drive Land Cruiser. Moreover, as the domestic demand for

taxis rapidly increased, production of passenger cars also rose quickly, from 50 units per

month to 250 units per month by 1953.

In production control, Toyota introduced the ‘Kanban’ (or ’synchronized delivery’) system

during 1954. The idea was derived from the supermarket system, where ‘consumers’ (those

in the later production stages) took ‘products’ (parts) from the stock shelves, and the

’storekeepers’ (those in the earlier production stages) replenished the stock to the degree that

it was depleted. The Kanban system became the basis for Toyota’s entire production system.

By the early 1950s, just as Toyota had anticipated, the Japanese market was crowded with

vehicles from the United States and Europe. It soon became apparent that to be competitive

at home and abroad, Toyota would not only have to make additional investments in

manufacturing facilities and equipment, but also undertake a major new research and

development effort. This was the reasoning behind Toyota’s decision in 1958 to build a full-

scale research center for the development of new automobiles (which also was to become

Japan’s first factory devoted entirely to passenger-car production). Toyota also began to

offer a more complete line of products. Beginning with the Crown model, introduced in 1955,

Toyota quickly expanded its passenger-car line to include the 1,000-cubic-centimeter Corona,

and then added the Toyo-Ace (Japan’s first cab-over truck) and a large-sized diesel truck.

International Growth in the 1980s

In 1980 Japan’s aggregate automobile production was actually better than that of the United

States. In the same year, Toyota ranked second only to General Motors in total number of

cars produced. Although Toyota made efforts over the years to improve the international

cooperation between automakers, in such ways as procuring parts and materials from

overseas manufacturers, Japan’s successes in the world auto market nonetheless resulted in

the Japanese automobile industry becoming a target of criticism.

Shoichiro Toyoda, president of Toyota during the middle and late 1980s, possessed a solid

understanding of American culture. Toyoda reportedly believed that Toyota’s future success

depended in part on the way it handled public relations with the United States, a nation that

he perceived to be extremely bitter about losing trade battles with Japanese industry. By

means of intense advertising and controlled public relations under Toyoda’s direction, Toyota

tried to elevate the principle of free competition in the minds of the American people. At the

same time, Toyoda carefully committed his company to greater international cooperation in

both technological and managerial areas.

In 1984, for example, Toyota entered into a joint manufacturing venture with American giant

General Motors called New United Motor Manufacturing, Inc. (NUMMI). This state-of-the-

art facility allowed Toyota to begin production in the United States cautiously at a time of

increasing protectionism, as well as learn about American labor practices. At the same time,

it provided General Motors with insight into Japanese production methods and management

styles. The plant was slated to build up to 50,000 vehicles a year. In the fall of 1985,

moreover, Toyota announced that it would build an $800,000 production facility near

Lexington, Kentucky. The plant, which was expected to begin assembling 200,000 cars per

year by 1988, created approximately 3,000 jobs.

By the beginning of the 1990s, Toyota commanded an overwhelming 43 percent of the

Japanese car market, and in the United States it sold, for the first time, more than one million

cars and trucks. Aside from these two mainstay markets, Toyota was solidifying its global

operations, particularly in Southeast Asia, and carving new markets in Latin America, where

the burgeoning demand for cars promised much growth. Toyota also spearheaded the

Japanese automobile industry’s foray into the luxury car market, leading the way with its

Lexus LS400 luxury sedan, which by the mid-1990s was outselling market veterans BMW,

Mercedes-Benz, and Jaguar.

“The New Global Business Plan”: 1995 and Beyond

When Hiroshi Okuda was promoted to company president in 1995 his chief ambition was to

revitalize Toyota’s standing in the global marketplace. In June he unveiled Toyota’s New

Global Business Plan, which placed renewed focus on innovation and international

expansion. Okuda’s targets were clearly defined: to raise production to six million vehicles a

year; to increase Toyota’s international market share to 10 percent; and to increase its share

of the domestic market to 40 percent. He believed the first two goals would be achieved

through the construction of new manufacturing plants in foreign markets, along with an

increased emphasis on the “localization” of parts production. The purpose of localization

was to reduce the time and expense involved with shipping components across great

distances, enabling Toyota to increase its overall automobile production and devote greater

resources to research and development. By widening the scope of operations in Toyota’s

overseas locations, Okuda envisioned a more streamlined, cost-effective manufacturing

process. Furthermore, the stimulation of local economies was an effective public relations

tool, enhancing the value of the Toyota brand name in foreign markets.

Okuda wasted no time putting his vision into practice. In 1995 Toyota announced its

intention to set up a manufacturing operation in Indiana, in the hope of becoming a major

participant in North America’s highly competitive large truck market. In 1997 the company

opened new plants in Canada and India, and in December it announced plans to build a

second European plant in Valenciennes, France, to begin production of a new line of cars

specifically designed for the European consumer. The year 1997 also saw increased

production in Toyota’s Thailand operations, with a total output of 240,000 vehicles. In 1998

the company also raised its export levels from the Thailand plants to 20,000 units, with most

of the vehicles destined for the Australian and New Zealand markets. That same year, the

company opened a new operation in Brazil, and in 1999 it began construction of a

transmission production plant in the Walbrzych Special Economic Zone in Poland, which

would begin exporting the parts to Toyota’s manufacturing centers in France, Turkey, and the

United Kingdom by 2002.

One of the most promising automobile markets to open up in the late 1990s was in China. By

March 1998 Toyota already had stakes in four Chinese parts manufacturing plants, one of

them a wholly owned subsidiary. The company took a more significant step in November

1998, when it established the Sichuan Toyota Motor Co., Ltd., Toyota’s first vehicle

production plant in China. A joint venture with the Sichuan Station Wagon Factory and

Toyota Tsusho Corp., the new plant was scheduled to begin manufacturing coaster-class

Okuda also assumed an aggressive approach to Toyota’s role in the domestic market. In late

1996 he made drastic cuts to Toyota’s vehicle prices in Japan, a move that incensed the

competition. In August 1998 Toyota extended its hold over the domestic market with the

purchase of a majority stake in Daihatsu. The company also implemented a number of

environmental initiatives during this period, both at home and abroad. In July 1999 it

inaugurated an initiative that aimed to eliminate all landfill waste by 2003, and in 2000 it

introduced stricter environmental regulations in its U.S. manufacturing plants, which actually

went beyond the current EPA standards.

One of the most radical innovations to arise from Okuda’s revolution was the Prius, Toyota’s

first hybrid car. Launched in October 1997, the Prius combined a highly efficient gas engine

with a self-regenerating electric motor, reducing carbon dioxide emissions by half. Although

initial estimates showed that production would have to surpass 200,000 vehicles a year for

the Prius to turn a profit, by March 1998 demand was already surpassing supply, and the

future of the eco-car on the domestic market looked promising. Prius finally hit the U.S. and

European markets in late 2000, amid increased fuel prices and mounting concerns over global

warming.

Although a weakened euro caused Toyota to suffer losses in Europe toward the end of the

1990s, the new operation in France, scheduled to begin production in 2001 at a rate of

150,000 vehicles a year, was expected to reverse this trend. The company also experienced

strong sales in the United States and Japan during this time, and in 2000 Toyota’s total

worldwide production exceeded five million vehicles for the first time ever.

PRODUCTS OF TOYOTA:

Toyota is the second biggest auto manufacturer of the world. Toyota cars came to India in

1997 through collaboration with the Kirloskar group. Toyota India, with their excellent car

models including Toyota Innova, Toyota Land Cruiser Prado, Toyota Camry, Toyota Corolla,

and the now discontinued Toyota Qualis has won Indian hearts with their practiced

philosophy of putting the “Customer first”.

Toyota (Sedan): Popular Toyota sedan car prices range from Toyota cars at a bit above

rupees ten lakhs eighteen thousand to Toyota cars at a bit above rupees twenty-six lakhs.

Toyota sedan cars include

Toyota Corolla (Sedan): The Corolla is a luxury sedan that combines excellence with style

and performance. The advanced aerodynamic styling gives the appearance of travelling in a

luxury car with the looks of a sports car. The Toyota Corolla with its petrol variants targets

the middle class consumer with Toyota Sedan cars between rupees ten and fourteen lakhs.

Toyota Corolla variants include

Corolla HE (Petrol): The HE is Corolla's executive model targeted for corporate upwardly

mobile executives. This variant has a showroom price of around Rs. 9.3 lakhs and on-road

price of around Rs. 10.2 lakhs etc.

Corolla H1 (Petrol): The H1 is the base variant in the Corolla range. It is also capable of

seating 5 people with five speed manual transmission and power steering. The H1 is

specifically designed for Indian conditions. It comes with sturdy features and a range of

appealing characteristics. It gives the user an unmatched driving experience. It has unrivalled

engineering, style, and other features. New cars in this series have a showroom price ranging

from around Rs. 10.3 lakhs to around Rs. 11.3 lakhs inclusive of all charges.

Corolla H2 (Petrol): The H2 is the enhanced model with improved features and other

characteristics. The H2 is specifically designed for Indian conditions. It comes with sturdy

features and a range of appealing characteristics. It gives the user an unmatched driving

experience. It has unrivalled engineering, style, and other features. At the showroom, this

car costs around Rs. 11.3 lakhs with an on-road price of around Rs. 12.4 lakhs.

Corolla H3 (Petrol): The Corolla H3 is the upper range model in the Corolla H series with

improved features and interiors. The H3 is specifically designed for Indian conditions. It

comes with sturdy features and a range of appealing characteristics. It gives the user an

unmatched driving experience. It has unrivalled engineering, style, and other features. At the

showroom, this car costs around Rs. 11.7 lakhs with an on-road price of around Rs. 13.10

lakhs.

Corolla H5 (Petrol): The H5 is the higher end model specifically designed for Indian

conditions. It comes with sturdy features and a range of appealing characteristics and gives

the user an unmatched driving experience. It has unrivalled engineering, style, and other

features. New cars in this series have a showroom price ranging from around Rs. 11.7 lakhs

to around Rs. 13.1 lakhs inclusive of all charges.

Corolla H4 (Petrol): The H4 is the superlative model in the Corolla series. Specifically

designed for Indian conditions, it comes with sturdy features and a range of appealing

characteristics. It gives the user an unmatched driving experience. It has unrivalled

engineering, style, and other features. This variant has a showroom price of around Rs. 12.35

lakhs and on-road price of around Rs. 13.8 lakhs.

Toyota Camry (Sedan): The Camry is Toyota's latest entry in the luxury sedan segment

targeted at premium buyers. This model boasts of superior aerodynamic features coupled

with a host of stylish and elegant external features along with athletic curves that blend with

the overall design. Toyota (Sedan) The Toyota Camry with its petrol variants targets the

upper middle class consumer and offers Toyota cars between rupees twenty-four and twenty-

five lakhs. Toyota Camry variants include

Camry W1 Manual (Petrol): The Camry W1 manual is Corolla's magnificent presentation in

the D+ segment. It has great styling, well appointed interiors, and simply outshines in

refinement. New cars in this series have a showroom price ranging from around Rs. 21.6

lakhs to around Rs. 24.75 lakhs.

Camry W2 Automatic (Petrol): The Camry W1 automatic is Corolla's magnificent

presentation in the D+ segment. It has great styling, well appointed interiors, and simply

outshines in refinement. The Camry W2 Automatic is now available at a showroom price of

around Rs. 23.3 lakhs with an on road price of around Rs. 26.65 lakhs.

Toyota (SUV): Popular Toyota SUV car prices range from Toyota SUVs at a bit above

rupees eight lakhs to Toyota SUVs at a bit below rupees forty-six lakhs. Toyota SUVs

include

Toyota Innova (SUV): The Innova is an elegant and urbane three-row seating multi

passenger vehicle (MPV) cum sedan. Also called a Multi Utility Vehicle (MUV), the Innova

comes with some exemplary and stylish looking external features like sporty design and

curves, aerodynamically shaped exteriors, three dimensional fronts, panoramic windows, and

semi concealed wipers. Toyota (SUV) The Toyota Innova with its petrol and diesel variants

targets the middle class consumer and offers Toyota SUV cars between rupees eight and

twelve lakhs. Toyota Innova variants include

Innova 2.5 EV MS (8-Seater) (Diesel): The 2.5 EV MS 8 seater is capable of seating 8

people. It comes with manual steering. This variant is now available at a showroom price of

around Rs. 7.5 lakhs with an on road price of around Rs. 8.2 lakhs.

Innova 2.5 EV MS (7-Seater) (Diesel): The 2.5 EV MS 7 seater is capable lf seating seven

people. It comes with manual steering. New cars in this series have a showroom price

ranging from around Rs. 7.5 lakhs to around Rs. 8.25 lakhs.

Innova 2.5 EV PS (8-Seater) (Diesel): The 2.5 EV PS 8 seater is capable of seating 8

people. It comes with power steering. This variant has a showroom price of around Rs. 7.55

lakhs and on-road price of around Rs. 8.5 lakhs.

Innova 2.5 EV PS (7-Seater) (Diesel): The 2.5 EV PS 7 seater is capable of seating 7

people. It comes with power steering. At the showroom, this car costs around Rs. 7.8 lakhs

with an on-road price of around Rs. 8.55 lakhs.

Innova 2.0 G1 (8-Seater) (Petrol): The G grade in the Innova series is the upscale model in

the Innova Series. The G1 forms the entry model in this range. The 2.0 G1 8 seater petrol

model is capable of seating eight people and has interesting features and other specifications.

This variant has a showroom price of around Rs. 7.60 lakhs and on-road price of around Rs.

8.55 lakhs.

Innova 2.5 G1 (8-Seater) (Diesel): The G grade in the Innova series is the upscale model in

the Innova Series. The G1 forms the entry model in this range. The 2.5 G1 8 seater diesel


New cars in this series have a showroom price ranging from around Rs. 8.3 lakhs to around

Rs. 9.35 lakhs.

Innova 2.0 G4 (8-Seater) (Petrol): The G grade in the Innova series is the upscale model in

the Innova Series. The G1 forms the upscale model in this range. The 2.5 G1 8 seater diesel


This variant has a showroom price of around Rs. 8.45 lakhs and on-road price of around Rs.

9.45 lakhs.



model is capable of seating seven people and has interesting features and other specifications.

The 2.5 G4 (7Seater) Diesel is now available at a showroom price of around Rs. 9.0 lakhs

with an on road price of around Rs. 10.10 lakhs.



model is capable of seating seven people and has interesting features and other specifications.

At the showroom, this car costs around Rs. 9.05 lakhs with an on-road price of around Rs.

10.15 lakhs.

Innova 2.0 V 8-Seater (Petrol): The V grade in the Innova series is the top range

presentation in the Innova Series. The 2.0 V 8-seater forms the upscale model in this range.

The 2.0 V 8-seater diesel model is capable of seating eight people and has interesting features

and other specifications. New cars in this series have a showroom price ranging from around

Rs. 9.95 lakhs to around Rs. 11.15 lakhs.

Innova 2.5 V (7-Seater) (Diesel): The V grade in the Innova series is the top range

presentation in the Innova Series. The 2.5 V 7-seater forms the top range model in this range.

The 2.5 V 7-seater diesel model is capable of seating seven people and has interesting

features and other specifications. New cars in this series have a showroom price ranging

from around Rs. 10.55 lakhs to around Rs. 11.85 lakhs.

Innova 2.5 V 8-Seater (Diesel): The V grade in the Innova series is the top range

presentation in the Innova Series. The 2.5 V 8-seater forms the top range model in this range.

The 2.5 V 8-seater diesel model is capable of seating eight people and has interesting features

and other specifications. This variant has a showroom price of around Rs. 10.60 lakhs and

on-road price of around Rs. 11.9 lakhs.

General Motors India

General Motors India, incorporated in 1994 as a 50-50 joint venture company with the C.K.

Birla Group of Companies, became a fully owned subsidiary of GM in 1999 when GMOC

bought the remaining shares. The company was restructured in 1999 and was converted from

a Public Limited company to a Private Limited company. GM APH LLC currently holds 86

percent of voting shares, and Holden (Australia) holds 14 percent. The SPO business was

integrated with the main business in the same company in 2000.

In India, GM strengthened its presence with new product launches Chevrolet Optra in 2003

and Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly in 2004, GM India is

expected to register a growth of 90% over 2003. With sales volume going up, the market

share of GM India has gone to nearly 2%. The sales volume in 2003 was 15,155 units while

2004 figure is expected to be around 27,000 units. In 2004, the company sold a total of

26,166 cars as against 15,155 cars in 2003 registering a growth of 73% while overall

passenger car growth during the year was only around 23-24%. These included 9191 Chevy

Optras in Entry 'D' Luxury sedan segment, 8369 Opel Corsa and 8417 units of the new

generation premium multi-utility vehicle (MUV) Chevrolet Tavera.

The existing GM India plant was originally built by Hindustan Motors. In 1994, GM India

entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the

45,000-square-meter plant near Halol, 45 kilometers northwest of Vadodara, in the western

state of Gujarat. In February, 1999, GM bought the holdings of Hindustan Motors and GM

India became a 100% subsidiary of General Motors Corporation of USA. The plant produces

the Opel Corsa, Corsa Sail, Chevrolet Optra, and Chevrolet Tavera. The Chevrolet Forester

and Opel Vectra are sold as CBUs (Completely Built in Units) and as imported from Japan

and Germany respectively.

The Chevrolet car or the Chevy is close to the heart of Indian consumers. The Chevrolet

entered India first in 1928. Chevrolet's manufacturer, General Motors, was the first company

to set up an automobile assembly plant in India. The first Chevrolet car in India was the

National Series AB Touring with wooden wheels. Chevrolet, however, had to close shop in

India in 1952-1953 following Indian national policy, and the Indian Chevrolet went on a

sabbatical.

The Chevrolet made its comeback in 2003. Primarily GM launched the European brand Opel

in the late 90s in India. When Opel failed to interest the Indian consumer, it was taken off the

market and Chevrolet came in. With Chevrolet's entry, in 2003, sales shot up immediately.

Prior to marketing Chevrolet, GM had sold only 8000 odd units in 2002. With Chevrolet's

arrival, 21,269 units were quickly sold within the same financial year. Chevrolet proved its

worth as soon as it reentered India and Chevrolet success continues to lead GM till date.

Chevrolet Product:

1) Chevrolet Aveo (Sedan)

2) Chevrolet Optra (Sedan)

3) Chevrolet Tavera (SUV)

4) Chevrolet Captiva (SUV)

5) Chevrolet Spark (Hatchback)

6) Chevrolet UVA (Hatchback)

7) Chevrolet SRV (Hatchback)

Chevrolet (Sedan): Popular Chevrolet sedans range from Chevrolet cars costing below

rupees six lakhs fifty thousand to Chevrolet cars costing above rupees twelve lakhs thirty

thousand, including

1. Chevrolet Aveo (Sedan): Chevrolet (Sedan) The Chevrolet Aveo with its petrol

variants targets the middle class consumer with Chevrolet cars ranging between

rupees six lakhs and seven lakh fifty thousand. Chevrolet Aveo variants include

A. Aveo 1.4 Base (Petrol): Chevrolet Aveo is a unique synthesis of technology,

sophistication and performance. The mid-size sedan from the stables of General

Motors, Aveo is well- designed and well-engineered to deliver unparalleled road

presence. New cars having a showroom price of Rs.5,84,000, and on-road price of

around Rs.6,58,000.

B. Aveo 1.4 Ls (Petrol): It's the mid-range variant with great looks, comfy interiors and

cost -effectiveness which are the unique selling propositions. New cars in this series

have a showroom price ranging from around six lakhs to around seven lakhs.

C. Aveo 1.4 LS Limited Edition (Petrol): The New Aveo 1.4 LS Limited Edition

(Petrol) comes added with all the modern features like leather upholstery, alloy

wheels, 2-DIN audio system and remote control keyless entry. Chevrolet Aveo 1.4

LS Limited Edition is available at a showroom price of around 6.3 lakhs and on road

price of around 7.0 lakhs.

D. Aveo 1.6 Lt (Petrol): Chevrolet Aveo 1.6 LT (Petrol) is the top-range variant with

great looks, comfy interiors and cost -effectiveness. At the showroom, this car costs

around Rs.6,68,000 with an on-road price of around Rs.7,55,000.

2. Chevrolet Optra (Sedan): Chevrolet (Sedan) The Chevrolet Optra with its petrol

and diesel variants targets the middle class consumer with Chevrolet cars ranging

between rupees eight lakhs and twelve lakhs. Chevrolet Optra variants include

A. Optra Magnum 1.6 LT(Petrol): With classy and posh design, great petrol engine

defines Chevrolet Optra Magnum 1.6 LT. At the showroom, this car costs around Rs.

6.8 lakhs with an on-road price of around Rs.7.5 lakhs.

B. Optra Magnum 1.6 LS(Petrol): With classy and posh design, great petrol engine

defines Chevrolet Optra Magnum 1.6 LS. At the showroom, this car costs around Rs.

8.3 lakhs with an on-road price of around 9.5 lakhs.

C. Optra Magnum Max (Diesel): Sporty looks, great diesel engine defines Chevrolet

Optra Magnum Max. At the showroom, this car costs around Rs.8,50,000 with an on-

road price of around Rs.9,57,000 lakhs.

D. Optra Magnum 2.0 LS TCDI (Diesel): This four wheeler is incorporated with the best

features in its segment. The Chevrolet Optra Magnum 2.0 LS TCDI (Diesel) is now

available at a showroom price of around Rs.8,74,000 with an on road price of around

Rs.9,84,000.

E. Optra Magnum 2.0 LT TCDI (Diesel): This variant from the Chevrolet stable has

stormed the automobile market. New cars in this series have a showroom price

ranging from around ten lakhs to around eleven lakhs.

Chevrolet (SUV): Popular Chevrolet SUVs range in price from Chevrolet cars costing a bit

above rupees six lakhs eighty thousand to Chevrolet cars costing a bit below rupees ten lakhs

thirty five thousand, including

3. Chevrolet Tavera (SUV): Product of General Motors, Tavera has carved a niche for

itself as multi-utility vehicle. Its 'Ergomax' seating with flexible options, endows

matchless space and comfort to the passengers. Chevrolet (SUV) The Chevrolet

Tavera with its petrol and diesel variants targets the middle class consumer with

Chevrolet cars ranging between rupees six and ten lakhs. Chevrolet Tavera variants

include

Tavera NY Edition B1 (10 Seater) (Diesel): A Multi-purpose vehicle, it's spacious and

comfort level gives you real value for money car. New cars have a showroom price of

around Rs.6,00,000 and on-road price of around Rs.6,80,000. Chevrolet Tavera NY Edition

B1 (10 Seater) car prices vary with the car dealer's location.

A. Tavera NY Edition B1 (7 Seater) (Diesel): Tavera NY Edition B1 is all set to chart a

turnaround roadmap for Chevrolet, thanks to the many engineering changes and build

quality carried out to meet local customer requirements. New cars in this series have a

showroom price ranging from around six lakhs to around seven lakhs.

B. Tavera NY Edition B2 (10 Seater) (Diesel): Tavera NY Edition B2 has carved a

niche for itself as multi-utility vehicle. At the showroom, this car costs around

Rs.6,80,000 with an on-road price of around Rs.7,65,000. This includes standard


C. Tavera NY Edition B2 (7 Seater) (Diesel): Chevrolet NY Edition B2 is marked for its

features and looks in its segment. Chevrolet NY Edition B2 is now available at a

showroom price of around Rs.6,90,000 with an on-road price of around Rs.7,75,000


D. Tavera Neo LS- B3 (Diesel): This variant of the Chevrolet with stylish and robust

looks rules the Indian auto market. New cars have a showroom price of around

Rs.7,31,000 and on-road price of around Rs.8,24,000.

E. Tavera NEO LT - L (9 Seater) (Diesel): Tavera NEO LT (9 Seater) from the

Chevrolet stable with all the latest features and facilities promises reliability and

assurance to the buyers. New cars in this series have a showroom price ranging from

around eight lakhs to around nine lakhs.

F. Tavera NEO LT - L ( 7 Seater) (Diesel): Tavera NEO LT - L (7 Seater) strikes the

market for its superior and high quality interior. At the showroom, this car costs

around Rs.8,26,000 with an on-road price of around Rs.9,30,000.

G. Tavera SS-D1 Neo 8-S (8 Seater) (Diesel): This variant of the Neo range makes its

presence for its advanced technology and comfort level. Tavera SS-D1 Neo 8-S is

now available at a showroom price of around Rs.8,95,000 with an on-road price of

around Rs.10,00,000.

H. Tavera SS-D1 Neo 7 (7 Seater) (Diesel): One of the most famous variant from the

Neo range known for its supreme features and decent performance. New cars have a

showroom price of around Rs.9,18,500 and on-road price of around Rs.10,33,500.

4. Chevrolet Captiva (SUV):

A. Captiva VCDi (Diesel): Neatly designed with sporty looks and latest diesel engine,

Chevrolet Captiva is available at the showroom around Rs.17,70,000 with an on-road

price of around Rs.19,00,000 lakhs in Delhi.

Chevrolet (Hatchback): Chevrolet hatchbacks range from Chevrolet cars costing a bit above

rupees three lakhs fifty thousand to Chevrolet cars costing a bit below rupees eight lakhs

twenty five thousand, including

5. Chevrolet Spark (Hatchback): Spark has evolved from where Matiz left. Available

in four options the much-talked about features of Spark includes fuel-efficiency,

weightlessness and contemporary looks. However, the biggest turn-on of Spark is its

advanced systems, aiding effortless driving on congested roads and highways.

Chevrolet (Hatchback) The Chevrolet Spark with its petrol variants targets the middle

class consumer with Chevrolet cars ranging between rupees three and four lakhs.

Chevrolet Spark variants include

A. Spark 1.0 Base (Petrol): Spark 1.0 Base is the entry level vehicle from the Chevrolet

Spark range. New cars have a showroom price of around Rs.3,10,000 and on-road

price of around Rs.3,80,000.

B. Spark 1.0 PS (Petrol): Spark 1.0 PS with a renewed look of classic beauty wins the

hearts of the Indian customers. New cars in this series have a showroom price

ranging from around three lakhs to around three lakhs eighty thousand.

C. Spark 1.0 LS (Petrol): Spark 1.0 LS makes its foray in the competitive Indian

Hatchback market with its dynamic and stylish looks with loads of sporty features.

Spark 1.0 LS is now available at a showroom price of around Rs.3,40,000 with an on-

road price of around Rs.4,10,000.

D. Spark 1.0 LT (Petrol): Spark 1.0 LT powered with advanced technology engine and

renewed sporty looks marks its difference in its segment. New cars have a showroom

price of around Rs.3,45,000 and on-road price of around Rs.4,30,000.

6. Chevrolet UVA (Hatchback): Chevrolet (Hatchback) The Chevrolet UVA with its

petrol variants targets the middle class consumer with Chevrolet cars ranging between

rupees four and a half lakhs and five and a half lakhs. The quintessential U-Va is

spacious, stylish and will stand tall among the crowd for its value for money.

Chevrolet UVA variants include.

A. U-VA 1.2 Base (Petrol): A perfect blend of comfort and speed, the tastefully done

designs of U-Va are a perfect match to any decor. New cars in this series have a

showroom price ranging from around three lakhs to around four lakhs fifty thousand.

B. U-VA 1.2 LT (Petrol): U-VA 1.2 LT with lively looks and sporty features storms the

Indian auto market. At the showroom, this car costs around Rs.4,76,000 with an on-

road price of around Rs.5,38,000.

7. Chevrolet SRV (Hatchback): Chevrolet (Hatchback) The Chevrolet SRV with its

petrol variants targets the middle class consumer with Chevrolet cars ranging between

rupees seven lakhs and eight and a half lakhs.

A. SRV 1.6 Base (Petrol): SRV 1.6 Base is the entry level vehicle Chevrolet SRV

collection. SRV 1.6 Base is now available at a showroom price of around

Rs.6,80,000 with an on-road price of around Rs.7,65,000.

HONDA MOTORS

HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd.

(India) as the key promoters. Honda’s models are strongly associated with advanced design

and technology, apart from its established qualities of durability, reliability and fuel-

efficiency.

Honda Siel Cars’ state-of-the-art manufacturing unit was set up in 1997 at Greater Noida,

U.P. and currently has a capacity of 50,000 cars annually. The company is planning to raise

its capacity to 100,000 cars per annum by the end of 2007.

HSCI has recently launched the all-new, third generation CR-V and new Accord in its

portfolio. The all-new Honda CR-V comes in 2 variants- 6 speed manual transmission

system and 5-speed automatic transmission system with Grade Logic Control for smooth and

effortless performance.

Honda’s most successful global model, the eighth generation Civic was launched in July

2006 and has already become segment leader within a short span of time. The Honda City

ZX, the largest selling sedan in India, is today recognized as one of the most successful car

brands in India. To ensure consumer’s safety, Honda has recently added new features like

Airbags and ABS in the VTEC version of the car.

In 2006, three of Honda’s four cars in the Indian market –

City, Accord and CR-V, have ranked first in the TNS Total Customers Satisfaction Award.

HSCI, registered an all-time high sales of 61,327 units in the financial year 2006-07. This

translates to a phenomenal growth of 43.5% over the last fiscal year where the company sold

a total of 42,727 Units. HSCI also closed the financial year on an upbeat note with record

sales in March 2007. The company sold 8,489 units in the month- an increase of 38.7% over

March 2006 where it sold 6,120 units. Honda's global lineup consists of

the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An early proponent of developing

vehicles to cater to different needs and markets worldwide, Honda's lineup varies by country

and may feature vehicles exclusive to that region. A few examples are the latest Acura

TL luxury sedan and the Ridgeline, Honda's first light-duty pickup truck. Both were

engineered primarily in North America and are exclusively produced and sold there.

The Honda Civic is a line of compact cars developed and

manufactured by Honda. In North America, the Civic is the second-longest continuously

running nameplate from a Japanese manufacturer; only its perennial rival, the Toyota Corolla,

introduced in 1968, has been in production longer. The Civic, along with

the Accord and Prelude, comprised Honda's vehicles sold in North America until the 1990s,

when the model lineup was expanded. Having gone through several generational changes, the

Civic has become larger and more up market, and it currently slots between the Fit and

Accord.

Honda Automobiles is one of the Big Asian Four (with Toyota, Nissan and Hyundai).

The 2006 Ridgeline was a reintroduction of the concept of a Uni-Body truck. Earlier

examples of this concept are the Subaru Brat and Baja, Volkswagen Rabbit pick-up,

and Dodge Rampage/Plymouth Scamp.

http://en.wikipedia.org/wiki/File:2008_Honda_Accord.jpg

http://en.wikipedia.org/wiki/File:06-08_Honda_Civic_Ph.jpg

Honda increased global production in September 2008 to meet demand for small cars in the

U.S. and emerging markets. The company is shuffling U.S. production to keep factories busy

and boost car output, while building fewer minivans and sport utility vehicles as light

truck sales fall.

Honda produces the Insight, a hybrid electric vehicle that competes with Toyota Prius Its first

entrance into the pickup segment, the light duty Ridgeline, won Truck of the Year

from Motor Trend magazine in 2006 (also in 2006, the redesigned Civic won Car of the

Year from the magazine, giving Honda a rare double win of Motor Trend honors).

Honda products:

Honda Sedans: Currently Honda India has three Sedan models, the Honda City, Honda

Civic, and Honda Accord that offer a choice of sedan car prices ranging from rupees seven

lakhs to rupees twenty lakhs.

1. Honda City Zx (Sedan): Sleek and sporty, Honda City is the result of through

research and careful thought. City Zx models range in price from below rupees eight

lakhs to a bit above rupees nine lakhs, including

A. City Zx Exi: Fashioned for the future, the attractive City ZX EXi is designed to arrest

the attention of those who can't wait for tomorrow. This variant has a showroom

price of around Rs. 6.8 lakhs and on-road price of around Rs. 7.8 lakhs.

B. City Zx Gxi: The city ZX GXI is the upscale model in the ZX series with a range of

brilliant features. At the showroom, this car costs around Rs. 7.3 lakhs with an on-

road price of around Rs. 8.24 lakhs.

C. City Zx CVT: The Zx CVT is a superior level model in the City Zx series with

fabulous features. New cars in this series have a showroom price ranging from around

Rs. 7.9 lakhs to around Rs. 8.9 lakhs.

D. City Zx VTEC: The Zx VTEC is the top range model in the Zx series loaded with

top range features. At the showroom, this car costs around Rs. 8 lakhs with an on-

road price of around Rs. 9 lakhs.

Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An

early proponent of developing vehicles to cater to different needs and markets worldwide,

Honda's lineup varies by country and may feature vehicles exclusive to that region. A few

examples are the latest Acura TL luxury sedan and the Ridgeline, Honda's first light-duty

pickup truck. Both were engineered primarily in North America and are exclusively produced

and sold there.

The Honda Civic is a line of compact cars developed and manufactured by Honda. In North

America, the Civic is the second-longest continuously running nameplate from a Japanese

manufacturer; only its perennial rival, the Toyota Corolla, introduced in 1968, has been in

production longer. The Civic, along with the Accord and Prelude, comprised Honda's

vehicles sold in North America until the 1990s, when the model lineup was expanded.

Having gone through several generational changes, the Civic has become larger and more up

market and it currently slots between the Fit and Accord

MARUTI SUZUKI

Maruti Suzuki has a strategy for the future, says Bhargava The Hindu Business Line New

Delhi: Maruti Suzuki which controls slightly over half of the domestic car market in the

country has said that it would design small cars suitable for the Indian conditions as a strategy

to beat the stiff competition with the entry of global auto makers.

It would be launching compact cars with more features to meet the needs of the customers

locally.

In its annual report released on Wednesday, the company's Chairman, Mr. R. C. Bhargava,

stated, "The car market is growing increasingly competitive. This is not surprising as global

manufacturers are bound to come where they see a growing market. Maruti has a strategy for

the future."

He said that the company would capitalize on Suzuki’s research and development capabilities

and internal resources to finance its expansion, thereby cushioning itself from the higher

interest rates and borrowing costs and become cost competitive.

Maruti is also betting on a faster growth in the small car market as fuel prices trend upwards

boosting demand for such models worldwide. The Indian small car market is set to witness a

plethora of compact models being launched starting from Tata Motors' much awaited 'Nano'

to foreign players like Honda, Volkswagen, Toyota who are also either customizing their

existing model or launching a new model to cater to this market.

Explaining the company's plan to stay away from the ultra low-cost segment, Mr. Shinzo

Nakanishi, Managing Director and CEO, said, "With growing incomes and aspirations,

Indian consumers have exposure to global design. Most of them would want compact cars to

be more stylish, loaded with features and superior engines and at least as reliable and fuel

efficient as their earlier cars. We would meet the needs of these customers."

The company's annual report also emphasized its growing focus on the export market. Maruti

Suzuki is looking to make India an exclusive base to manufacture small cars for Europe. "We

want to export 2 lakh units annually by 2010-11. At that time our target for the domestic

market would be to sell one million cars for which we are expanding capacity," Mr.

Nakanishi said. In the fiscal 2007-08, Maruti exported 53,000 units, the highest ever till date.

The company, however, painted a bleak picture on its outlook in the current financial year in

the domestic market on account of US economy slowing down and high crude prices which

has led to inflationary pressure globally. It has also expressed concerns over interest rates and

tightened money supply.

"The general expectation is that industrial growth including sale of automobiles will be

adversely impacted. The company posted a 12 per cent increase in domestic sales in the first

quarter of the current fiscal and will continue to make all efforts to maintain a reasonable rate

of growth," the company outlined in the report.

Introduction

Maruti Udyog Limited's (MUL) share of the Indian passenger vehicle market dropped to

below 50% in 2004-05 (Refer to Exhibit I for the performance of the Indian passenger

vehicle industry and MUL between April 2003 and March 2005). The future of MUL's low-

cost model - the Maruti 800 (M-800) - was at stake due to the entry of global automakers into

India.

M-800 had dominated the Indian car market since it was launched in 1984. The introduction

of new cars by competitors made the M-800 look obsolete as it had not been changed in any

major way for over two decades. Apart from the increased competition, MUL also had a few

other problems on its plate.

There was a delay in setting up of a plant in India for manufacturing diesel engines and

transmission systems for cars. The engines for its diesel variants were imported from other

countries, and there were limits on the quantities it could import. In the market, MUL's

models like the Zen, Alto, WagonR, and Baleno were showing mixed results.

While Zen, Alto and WagonR were successful, Baleno failed to live up to MUL's

expectations. Its utility vehicle 'Versa' met with a disastrous response from the Indian

consumer. In addition, rising incomes, the growth in the used-car market, and availability of

easier finance options, led customers to shift their allegiance to other models from

competitors. To reduce its excessive dependence on a single model (M-800), the company

had restructured the strategy for the M-800, and planned for product upgrades and new

product development. In tune with changing customer preferences, the company launched its

hatch-back model, 'Swift' in May 2005, to compete with Hyundai3 Getz and Fiat4 Palio.

MUL hoped this model would help the company shed its low-cost and simple look. The move

expressed the company's intent to move up the value pyramid (by upgrading Alto-WagonR-

Santro customers to the new model) while simultaneously increasing market penetration at

the bottom of the value pyramid by making the M-800 more affordable.

Indian Automobile Industry

The Indian automobile industry has four major segments -- commercial vehicles (CVs),

passenger vehicles, three wheelers, and two wheelers. The market share for each of these

segments of the Indian automobile industry, for the year 2003-04, is shown in Figure I.

According to the Society of Indian Automobile Manufacturers (SIAM) , the Indian passenger

vehicle market has three categories -- passenger cars, multi-purpose vehicles (MPVs), and

utility vehicles (UVs).

The passenger car market is further divided into various segments based on the length of the

car (Refer to Exhibit II for a detailed description of the lengthwise classification of passenger

cars.

The Indian automobile industry was a highly protected slow-growth industry with very few

players till the opening up of the Indian economy in 1991. Low manufacturing costs,

availability of skilled labor, an organized component industry, and the capability to supply in

large volumes attracted global auto majors to set up their operations in India after the opening

up of the sector.

For example, Fiat and DaimlerChrysler started outsourcing their component requirements to

India. 100 percent Indian subsidiaries of global players, like Delphi Automotive Systems and

Visteon, exported components to other parts of the world.

Macroeconomic factors like government regulations, low interest rates, and availability of

retail finance played an important role in the rapid development of the automobile industry in

India during the late nineties (Refer to Exhibit III for an understanding of the impact of the

Union Budget on the Indian automobile industry over the years)...

Maruti Udyog Limited

MUL's M-800 was ideally suitable for Indian customers as it was reasonably priced, fuel

efficient and was sleek and easy to drive when compared to the models then available. With

the success of its M-800, MUL soon replaced Hindustan Motors as the leader in the

passenger car market...

Government of India - Suzuki tussle

In August 1997, there was a major difference of opinion between the GoI and SMC regarding

the appointment of the Managing Director (MD) for MUL. SMC did not support the

appointment of R. S. S. L. N. Bhaskarudu (Bhaskarudu), holding that he was incompetent to

hold the post...

Decline in market share

There was a gradual decline in the market share of MUL over the years from 1999 to 2004.

This happened even though MUL had slashed prices of certain models on a couple of

occasions...

Maruti Strikes Back

Launch of new variants and models

Despite analysts predicting that the M-800, the bread and butter model of MUL, would be

phased out, the company asserted that it would take necessary steps to maintain its leadership

position. MUL had three compact car models -- Alto, WagonR, and Zen -- competing with

Hyundai Santro, Tata Indica, and Fiat Palio...

Increasing dealer profitability

During 2003 and 2004, MUL visualized and implemented a strategy for its dealers to increase

their profitability levels in view of increased competition. According to the strategy, the 300-

odd dealers of the company were asked to strengthen their manpower, increase the salaries of

their sales agents, and offer them better incentives...

Promotional offers

Faced with stiff competition and declining market shares, MUL focused its promotions

strategy on targeting two-wheeler owners...

'Change Your Life' campaign

In 2003, MUL launched novel offers like "Change Your Life" campaign and also offered

vehicle insurance 'for Rupee One only', to attract customers...

Television campaigns

In 2003, MUL came out with a toy car advertisement that became popular for its simplicity

and straightforward message. The advertisement depicted a child playing with a toy car.

When reprimanded by his father the child replies, 'Kyakaroon papa petrol khatam hi nahin

hota' (What should I do? The petrol never finishes)...

'2599' offer

In 2004, MUL introduced the '2599' offer under which a consumer could buy an M-800 by

paying an EMI of Rs 2,599 only, for a period of seven years. The down payment was fixed at

Rs 40,000. MUL entered into an agreement with the State Bank of India (SBI), the largest

bank in India, to promote this scheme...

'Teacher Plus' scheme

To further penetrate into the market, MUL continued to focus its efforts on the rural markets

and specific target groups. In 2004, it introduced the 'Teacher plus' scheme, in a tie-up with

SBI, aimed at teachers who were interested in buying a new car...

Maruti 'True Value'

There was a gradual decline in the market share of MUL over the years from 1999 to 2004.

This happened even though MUL had slashed prices of certain models on a couple of

occasions...

Conclusion

The company's change in strategy and emphasis on developing effective marketing

communications began to yield results. In the J.D. Power Asia Pacific 2004 India APEAL

study, WagonR and Zen were ranked first and third in the premium compact segment;

Esteem was picked as the best entry level car in the mid-size category.

MUL also topped the J.D. Power Asia Pacific 2005 India Sales Satisfaction Index in terms of

customer satisfaction with the new vehicle sales process.

As per the J.D. Power Asia Pacific 2005 India Customer Satisfaction study, MUL ranked

highest in customer satisfaction with after-sales service for the sixth consecutive year.

"Maruti's consistent performance in the study over the past several years has resulted in a

steady increase in the percentage of its customers who say they intend to remain loyal to the

brand," said Mohit Arora, India director, J.D. Power Asia Pacific...

Exhibits

Exhibit I: Performance of Passenger Vehicle Industry and MUL: April 2003 to March 2005

Exhibit II: Classification of Passenger Cars*

Exhibit III: Impact of the Union Budget on the Indian Automobile Industry

Exhibit IV: Buying Behavior of Indian Car Buyers

Exhibit V: MUL's Major Competitors in India

Exhibit VI: The Discount Phenomenon

Exhibit VII: Price List of MUL's Car Models

MAHINDRA & MAHINDRA

It was in early 2004 that Anand Mahindra (Anand), vice chairman and managing director

Mahindra & Mahindra (M&M), heard Kenneth Ramsay (owner of Angus Valley Farm

Supply in the town of Elm Mott in Texas USA - population 200), rave about his Mahindra

tractor - the brand he and his townsfolk preferred to well known US tractor brands like John

Deere and New Holland. Anand realized that M&M had a real opportunity to become a 'truly

global' brand.

M&M's globalization plans had to be seen in the context of the several restructuring exercises

undertaken by the company in the past few years, which had substantially increased the

company's profitability and productivity. This was in line with Anand's philosophy on

globalization.

Anand once remarked2, "If you start fantasizing about building a global brand before you

have the opportunity to build a global company - and the necessity to do it-that's like the tail

wagging the dog."

M&M had posted excellent results for the year ended 31st March 2004. Gross sales from

operations at Rs 5,914 crore was up by 31.5%, while profit after tax (PAT) at Rs 348.5 crore

was up by 139%, from that posted in 2002-03.

M&M had successfully made a $100 million foreign currency convertible bond (FCCB) issue

in 2004, despite the post-elections market uncertainty in mid-2004. The company had put

aside Rs 1,000 crore for domestic and overseas acquisitions. The Scorpio, M&M's

indigenously developed sports utility vehicle (SUV), had become the new public face of the

company and significantly transformed the company's stolid image

Background Note

Mahindra and Mahindra (M&M) was established in 1945, when two brothers - J.C. Mahindra

and K.C. Mahindra decided to manufacture general-purpose utility vehicles. The duo joined

hands with their friend Ghulam Mohammed and formed Mahindra & Mohammed Ltd...

Restructuring M&M

Though M&M was among the leading players in most of the segments it operated in, it

realized that some of its businesses were not closely related to its core competency. This

realization marked the beginning of the biggest 'change exercise' undertaken by the company

since its inception...

Project Blue-chip

In December 2002, M&M reached a low point in its history. Depressed revenues and high

costs reduced profit margins considerably. A weak economy and lack-luster demand for its

existing utility vehicles (Armada and Bolero) led to lower sales and revenues...

Business Units

M&M offered a range of farm equipment and related utility vehicles. The two principal

divisions of the company were farm equipment and automotive. The more diversified parts of

the business had been spun off as separate business entities, and activities organized under

various business groups

Management Structure

Below the board of directors there was a Management Board, which consisted of Anand, the

presidents and the executive vice-presidents. They met once a month to discuss issues that

affected the company as a whole...

Globalization

Anand expected each business to clearly define the markets it wanted to enter, the market

share it wanted in each product category, and then design the marketing mix necessary to

achieve the market share...

The Road Ahead

Anand had laid down the broad targets for the future. If a group or sector was the market

leader, it would have to widen the gap. By the end of 2004, each company or SBU had to be

in the top three. For manufacturing companies, 20 % of the annual revenues each year had to

come from products that did not exist four years ago

In all businesses today, aligning human resource management with business strategy has

become an important element to succeed. And Mahindra & Mahindra group is no different.

Organizational restructuring, managing key resource requirements, performance management

systems, career and succession planning have all been re-aligned to form synergy with the

company’s overall business strategy.

A Choudhari, executive vice president, human resources & corporate services, Mahindra &

Mahindra group told FE that the re-alignment was necessitated by changing dynamics in the

business environment. He said that the objective was to grow leadership positions in the UV

and tractor market and developing successful businesses in relatively new business areas like

IT, financial services, realty and infrastructure development and also service industries like

Time share (Club Mahindra). “Keeping in mind the new business objectives the challenge

was to re-orient the human resource management towards these objectives,” said Mr.

Choudhari.

Organizational Restructuring

For the group, organizational restructuring posed the greatest challenge keeping in mind the

changing dynamics in the business especially the tractor and automotive division. In the last

three years, the emphasis was development of the long term strategy and fixing clear business

goals. Taking the example of tractors, the long term goal was to be the largest manufacturer

in the world. Thus the process began by changing internal benchmarks of excellence to global

standards. Benchmarking all business processes from product development to customer care

and commercial controls to JUSA (Japanese Union of Scientists and Engineers) was

implemented.

“We are targeting the Deming award through these initiatives, which encompass the entire

gamut of function of the company including the HR function and similarly the automobiles

business is targeting the TPM award from the Japanese Institute of Plant Management,” said

Mr. Choudhari.

To achieve these objectives the company began a full reassessment of organisation and

management structure with the help of consultants like Mckinsey’s, Arthur Anderson and

Korn Ferry. The outcome was, clear roles and responsibilities were identified and the

competency required for each role was mapped. The officers went through individual

assessments of competencies against the requirement of each role. External consultants as

well as internal assessors ran assessment centres and each individual were then placed based

on competency and role fitment.

The restructuring also led to the pruning of the staff. In 2001, there were 3970 officers in 13

grades and levels which was brought down to 3400 officers in five responsibilities namely

strategic, executive, department/unit head, managerial and operational in 2003. This

organisational restructuring based on business needs was later extended to smaller businesses

in the group. For example, Mahindra Engineering services have recently been established by

combining key engineering and design resources from the Tractors and Automotive division.

”Given the numbers involved the challenge was to manage expectations, feeling of threat that

is intrinsic to such an exercise, communications and counseling. HR function played an

important role as it led the exercise with co-operation from all line managers,” explained Mr.

Choudhari.

Managing Key Resource Requirements

The reassessment of organisational requirements brought in gaps in terms of management

resources. While many of the roles were filled through internal promotions and parallel

moves, certain gaps like inability of the senior management to fit in the role due to the rapidly

changing business environment emerged. Therefore the company began inducting senior

management resources from diverse companies like Xerox, Marico, Enron, Hindustan lever

Ltd as well as from engineering, tractor and automobile sectors. This enabled the company to

induct a talent pool with rich background which was suitable to the changing business

requirements of the group.

Also in order to bring in young talent keeping in mind the long term objectives, the group has

started a formal Management Trainee Scheme through campus recruitments. The move threw

up an interesting observation, that of acceptability of young blood working initially at

operational level jobs with older experienced people. To avoid the feeling of animosity and in

order to build camaraderie, the group has put in place a Mentoring system, where each

management trainee has a senior executive who plays the role of mentor. The mentor reviews

the progress made by the trainee every two-three months and provides guidance and

counseling if the need so arises. Further in order to encourage existing management resources

to seek internal opportunities beyond their immediate business group, a formal internal

advertisement has been established which puts up vacancies on the Mahindra intranet.

Management Development

Management development like any other company has also emerged as a special area of

focus at the Mahindra group. The need to enhance internal talent and leadership potential was

felt keeping in mind the changing business scenario. Allen Seqeuira, vice president, corporate

human resources and management development, Mahindra & Mahindra group said that the

thrust is on building leadership development at middle and senior management levels and this

objective is being met through a series of initiatives at all levels including the top

management, where the emphasis is on strategy, leadership and change.

Mr. Seqeuira explained that a three tier approach is in place to develop the capabilities of the

management. The management development has been structured to meet the needs at each

responsibility band of management, said Mr. Seqeuira. So, if the emphasis in the top

management is on strategy, leadership and change, for the strategic and executive

management band, the focus is on team building, people skills, understanding and managing

technology and financial and marketing orientation. Similarly for department and unit head

management band, the emphasis is on general management skills, managerial and personal

effectiveness and multi functional understanding.

Apart from the in house management development programme, the group also utilises

selective outside programmes for high potential managers. These include management

programmes run by Harvard Business School, London Business School and India School of

Business - Hyderabad. “The idea is to take the management development programme to the

lowest level of the hierarchy to bring out the leadership potential, which is extremely crucial

for the company’s growth as it moves ahead,”

Managing Succession

A key HR function at Mahindra group is the career and succession planning. The objective of

this function is to chart out a detailed career path of each individual at the senior most levels.

The career path taps both the strengths and weaknesses and aspiration of each individual

executive.

CHAPTER - 5

SALES AND ADVERTISEMENT POLICY

Advertising Program

Gary Armstrong and Philip Kotler's "Marketing" describe four decisions you have to make.

Know what you need to accomplish with your advertising, called advertising objectives, and

how much you can spend on your advertising choices, called your advertising budget. Decide

what your advertising will say about your product and what media you're going to use, called

your advertising strategy. After your advertising strategy has been set into play, you need to

consider the effectiveness of your decisions, called evaluating your advertising campaign.

Advertising Objectives

You should have ideas of what you want from your advertising campaign. There are three

types of advertising objectives discussed by Armstrong and Kotler in their book--informative

advertising, in which you are letting customers know about your new product; persuasive

advertising, in which you try to convince customers why they should choose your product

over a competitor's; and reminder advertising, in which you consumers to continue choosing

your established product rather than going to a new product.

Advertising Budget

Armstrong and Kotler have four methods for the advertising budget of the product. The

affordable method is simple: The company's management makes a decision about what the

company can afford to spend on the product. The percent-of-sales method is based on a

percentage of the amount of sales the product is bringing in or is expected to bring in. The

competitive-parity method is when you try to match your advertising expenditures to your

competitors'. For the objective-and-task method, look at your product's advertising objectives.

You will then make a budget based on an estimate of how much attaining those objectives

will cost.

Advertising Strategy

For this, you have to decide what you want your advertising to convey about your product

and what types of media you are going to use. You will need a message strategy, which just

outline what you want the advertising to point out about your product. After you have a

message strategy, you will need a creative concept, the thing about your product's advertisers

consumers will remember. After that, you will come up with the execution styles your

advertising will use. Examples of execution styles are showing a specific lifestyle, a character

for the product, or evidence about the product (such as endorsements or scientific studies).

Now consider the media you want to use. You must know how many people you need to see

your advertising to decide what type of media to use, as every type of media reaches a

different amount of people. After that, consider what vehicles within the media, such as

specific TV shows or magazines, would work best for your product. When the vehicle is

chosen, you'll run your ads either with continuity, in which the ads are presented evenly in a

time period, or by pulsing them, in which the ads are run heavily for short bursts of time.

Evaluating the Campaign

Now is the time for you to think about what your advertising campaign is doing for your

product. Armstrong and Kotler describe two types of advertising results--the communication

effects and the sales and profit effects. In communication effects, you look at whether the

advertising is presenting the message you want. In the sales and profit effects, you can choose

to compare sales and profits with how much money has gone into advertising, or you can

conduct experiments to see what the effects of your advertising are (for example, you can

vary your advertising in different areas).

Difference Between Advertising and Sales Promotion

Advertising and Sales Promotion are different. They have differences in there use and utility.

WIll try to explain it with example of HUTCH (Orange) to facilitate our understanding.

ADVERTISING SALES PROMOTION

By using a variety of persuasive

appeals, it offers reasons to buy a

product or service.

Eg: Good Network, Promises and

Delivers.

Besides giving reasons in the form of

different appeals, they offer incentive

to the consumers to buy the product

or service now.

For new users, 1HUTCH no is given

free for 1 month &sms is free for 3

months.

Appeals are emotional or functional in

nature.

Eg: the current ad of “Wherever you

go, our network follows”

Appeals are rational

It justifies whatever it says.

Time-frame is long term. Time frame is short term.

The primary objective is to create an

enduring brand image.

To get sales quickly or to induce trial.

Indirect and subtle approach towards

persuading customers to buy a

product or service.

Direct in approach to induce

consumers to buy a product or service

immediately by temporarily changing

the existing price-value relationship

of the product or service.

Advertising Methods

1. Appeals to Emotion

When advertisers use this technique, they attempt to appeal to those emotional needs

experienced by all humans. The text will be worded to emphasize those needs. Some of the

common appeals to emotion include:

the need to be accepted by others

the need to have membership in an elite group

the need for self-acceptance

the need for security

the need for family

the need for change

the need for excitement

2. Associations

When advertisers use association, they attempt to associate their product with the people,

values and lifestyles depicted in the ads. Associations are positive and rely heavily on the

visual image created in the ad, but the text enforces the association. Products are commonly

associated to:

wealth / luxury

fame / prestige

happiness

success

youthfulness / health

excitement / adventure / risk

patriotism

independence / individuality / non-conformity

love / romance / sex

3. Fear Tactics

When advertisers use fear tactics, they attempt to sell their product by playing on our fears.

The reasoning is that if consumers buy the product the fear is abolished. Ads that use fear

tactics rely heavily on the text. Some common fear tactics are:

fear of death / aging / sickness

fear of failure

fear of poverty

fear of violence

fear of bodily embarrassments

fear of sexual failure

Fear of failing to provide

Fear of aging / sickness

It is important to note that the advertising techniques of appeal to emotions, associations and

fear tactics may overlap. However, one technique should be dominant.

Advertising Example

When deconstructing Advertising techniques:

The text, visual and layout should all be considered and all should reinforce the predominant

advertising technique. Any one product can be marketed in a variety of ways, using a variety

of techniques. For example, an ad campaign for a diamond ring could be marketed through:

A. An appeal to emotion

Suppose the ad contains:

a visual of a woman peering longingly at a tray of diamond rings displayed in a store

front window

while her husband, with a smile on his face, watches from a short distance away.

the text reads "Show your love."

Then, the ad

is an appeal to emotion and the need is the desire to please someone you love.

B. An association

If the ad contained:

• a visual of a handsome man offering the ring to a beautiful woman

• a luxuriously furnished apartment

• a table set with wine and candles; and

• a text which reads "Love has no price"

Then the ad would be associating the purchase of the diamond ring to wealth. Depending on

the positioning of the male & female, for example, a close embrace, the association may

extend to love and romance.

C. Fear Tactic

If the ad shows:

• A man and woman warmly embracing while visibly displaying the diamond ring on

her finger and

• The text reads, "He just gave her a diamond. She thinks it’s absolutely perfect. She

thinks he is too"

Then the ad technique may be a fear tactic. The fear implied here is fear of failure to provide

for a woman as other men do or possibly fear of rejection if the viewer were to buy anything

less than what the intended woman thought was a perfect gift. On another note,

This type of ad would be considered a stereotype.

Why?

There may be other ways to interpret these ads

But these examples should demonstrate that:

• Products can be marketed through a variety of techniques

• The visual, the text, the layout, and specific details combine to enforce the message,

&

• These details in an ad will distinguish the techniques of appeal, association & fear

tactic. Just because diamonds are generally expensive does not mean that association to

wealth is the only technique used to sell diamonds.

You must ask yourself:

• Is this ad creating a need?

• Is this ad associating the product to a positive image?

• Is this ad working on our personal fears?

The Message of the Ad

Background: Where and when does the advertisement appear? What is the size of

the print ad or the length of the TV or radio commercial? What product or service is

the ad selling?

Target Audience: For whom is this advertisement intended? What is the age, sex,

social class, values and life-styles of the intended audience? What details suggest this

particular audience?

Hook and Story: How does the ad get our attention? What is happening in the ad --

many ads tell stories. What "problems" will the product solve? What are the

advertisers trying to get you to believe? Summarize the story briefly. The

developmental techniques of the story will be addressed in other sections.

Primary Informational Message: Some advertisements provide you with

knowledge about a given product, but many ads say nothing about the actual product.

What actual knowledge/facts, or lack of, have been provided in the ad?For example,

car advertisements focus on mileage, acceleration, comfort and style.

Secondary Messages (techniques of structure): These are the messages that are

designed to "seduce" the potential consumer. The may take the form of appeals to

emotion, associations, or fear tactics. They may appeal to the needs and desires of

individuals such as: guilt, security, sensuousness, social interaction, self-

improvement, community, cleanliness, get up and do, desire to own, status, power, the

need to help others. What are the associations the ad makes with the product. What

are the advertisers trying to get you to believe? What messages is the ad trying to

send? In car advertisements the seduction may be the use of models, or the most

often feature is freedom of the open highway - traveling in comfort and speed alone in

one's freedom machine. What is the overall message of your ad?

Advertising Claims (techniques of language): What techniques of language have been

used in the ad? Identify, name, and discuss the claims. Demonstrate any weaknesses in the

claims. What are the claims really saying?

Composition of Pictorial and Ad Copy (Techno-Effects)

Characters: What people (number, male or female, age, etc), animals, animated

characters are used in the ad?

Setting: What place, decor, time of day, era, lighting, natural or artificial

surroundings mark the ad?

Copy: What words ( whether written or spoken), slogans or catchy phrases, and

logos are used? How many times does the name of the product appear? Or how

many times is it spoken? What is the location and prominence of the product itself in

the ad? How are captions used to attract your attention?

Sound: What voice (male or female), music, natural noises, special sound effects are

used?

Visual: How are the elements in the picture arranged? Is there any blank space?

Does the ad contain juxtaposition ( seemingly unrelated items placed close together or

side by side)? What is the message connected to body language? Who or what is in

the foreground? Background? What details may have been left out?

Color and Lighting: Every color suggests a mood or tone. Is the color bright and

cheerful? Warm and comforting? Cool and professional? What kind of lighting has

been incorporated: top lighting, side lighting, bottom lighting, back lighting artificial

lighting, or natural lighting? ( Link to camera angles and shots)

Point of View: What camera angles have been used -- close up, long shot, looking up

(low angle shot) or down (high angle shot), looking in or out, sharing a person's

perspective (eye-level shot). (link to cameral angles and shots)

Details and Accessories: What clothing, jewelry, price tags and other details are

displayed in the ad. Remember that every detail has been chosen for a purpose.

C. Summary Observations

Intended and Unintended Effects: What are the intended effects of the ad? What

are the products trying to do? Identify the unintended effects of the ad. Imagine a

wide spectrum of responses to the ad. What other meanings (oppositional readings)

could audiences construct from the ad?

What the Ad Does Not Show: What information is withheld from the audience?

Labor involved? Resources Used? Environmental Issues? Health concerns? etc...

Personal Reaction: How effective is the ad? Why does it work? not work? Does the ad

conform to the advertising codes in existence? What codes are violated? Is this ad

controversial? Does the ad use shock value through sexual means or by raising social issues?

EVALUATION

The advertisement has been clipped and sent with the ad deconstruction

The analysis has been written in complete sentences and proper paragraphing;

headings may be used

The message, the composition and the summary of the ad have all been addressed

Individual topics within the main headings have been addressed as they pertain to the

ad.

The student has attempted to explain the possible reason/s for the choices made in the

actual ad construction; why were these choices made?

If the student is unsure of a particular detail, he/she still addressed the concern and

offered a possible explanation.

The analysis reflects application of the advertising information presented in this

module.

The analysis is neat and organized and demonstrates critical thinking

SALES PROMOTION

Sales promotion refers to many kinds of incentives and techniques directed towards

consumers and traders with the intention to produce immediate or short-term sales effects.

DEFINITION OF SALES PROMOTION

“Sales promotion includes incentive-offering and interest-creating activities which are

generally short-term marketing events other than advertising, personal selling, publicity and

direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the

purchase and other desired behavioral responses of the firm’s customers.”

Sales promotion offers a direct inducement to act by providing extra worth over and above

what is built into the product at its normal price. These temporary inducements are offered

usually at a time and place where the buying decision is made. Not only are sales promotions

very common in the current competitive market conditions, they are increasing at a fast pace.

These promotions are direct inducements. In spite of the directness, sales promotions are

fairly complicated and a rich tool of marketing with innumerable creative possibilities limited

only by the imagination of promotion planners. Sales promotion is often referred to by the

names of ‘extra purchase value’ and ‘below-the-line selling’.

Today we find companies in almost all sectors offering some sort of a promotion scheme.

These sectors range from automobiles to beverages, from financial services to foods, from

household durables to services, from household products to business products, from personal

care to textiles and apparel.

Sales Promotions are activities that affect how and when people buy and thus attract new

audiences and increase sales. It's an all encompassing term that covers everything apart from

advertising, publicity and direct marketing, although these might also be used to deliver your

sales promotions. SalesPromotion offer people (consumers) incentives to buy and so close a

sale already made in the consumer’s mind. Its major strength is its impact and influence, in

getting the consumer to make a purchase – in response to a message, advertisement, coupon,

point-of-purchase device or a special demonstration at the point of sale. For any Sales

Promotion to be successful, it must be part of an overall marketing strategy and form part of

your marketing mix (ask for our publication on the Marketing Mix for more details).

Sales Promotion is often interfaced with price with discounts being a common ingredient as

well as:

1) Sampling or learning opportunities

2) Joint promotions or collaborations with third parties

3) Special events

4) Competitions

5) Incentives

6) Value adding

7) Other rewards

As with any marketing activity, there are many pitfalls and lack of attention to details in the

design, presentation and execution of promotions can cause disappointment to consumers

with resultant damage to the business or product concerned. A single well-planned, very

focused and far-reaching promotion is better than several small one-off disparate campaigns

that are distant from the strategic objectives of a business.

Don’t forget that the ultimate objective of Sales Promotion is to predict and modify customer

purchasing behavior – usually, to increase in sales or customer transactions. But it’s not

always about immediate results. When a Sales Promotion reflects a brand’s image and is

directed at the appropriate target market, it can achieve not only short term tactical gains, but

it can also deliver on long term strategic issues. In recent years, money spent by businesses

on sales Promotion activities has exceeded monies spent on advertising and there are strong

signs that this pattern of growth will continue to maintain its economic edge.

The techniques of Sales Promotion are used both to motivate people who sell to improve their

performance as well as to induce consumers to purchase their goods and services. Sales

Promotion works most closely with advertising, but it’s also connected with all other

elements of marketing: production services, packaging, price, and distribution. At the

manufacturing and wholesale levels of distribution, the methods used to motivate personnel

to meet specific goals usually fall into two categories - sales incentive prizes (such as

merchandise, travel, or cash awards) and sales contests. Both are based upon the salesperson

reaching an objective above the normal sales budget. Consumer promotions encompass a

wide variety of techniques, including:

1) Sampling of goods or services

2) Redeemable "money-off" coupons to encourage the trial or testing of

Products

3) Special price-reduced packages

4) Mail-in premium merchandise offers

5) Cash or coupon refunds by mail

6) Special product packaging

7) Loyalty incentives

8) Contests

9) Competitions

10) Instant wins

11) Sets and series of collectibles

12) Third party promotions

13) Prize draws

Promotional activities can be wide and varied and can include:

Advertising

Public Relations

Affinity group promotions

Exhibitions

Point-of-sale promotions

Demonstrations

Direct mail and direct marketing

Promotions targeted at channel

Suppliers – wholesalers and distributors rather than to customers

National Insurance on Incentives

From 6 April 2000, where a third party provides workers with awards in non-cash vouchers

as part of an incentive scheme, the third party may pay the national insurance contributions

(NICs) rather than employers having to report and pay NICs on incentives they do not

control. In those circumstances only, the NICs liability for non-cash vouchers is changed

from Class 1 (employee and employer) to Class 1A (employer only) NICs liability.

Sales promotion describes incentives and rewards to get customers to buy now rather than

later. Whereas advertising is a long-run tool for shaping the market’s attitude toward a brand,

sales promotion is a short-term tool to trigger buyer action. No wonder brand managers

increasingly rely on sales promotion, especially when falling behind in achieving sales

quotas. Sales promotions work! Sales promotions yield faster and more measurable responses

in sales than advertising does. Today the split between advertising and sales promotion may

be 30–70, the reverse of what it used to be.

The growth of sales promotion reflects the higher priority companies are attaching to current

sales than to long-term brand building. It is a return to transaction marketing (TM) rather than

relationship marketing (RM).

Sales promotion can be directed at retailers, consumers, and the sales force. Retailers will

work harder if offered price-offs, advertising and display allowances, and free goods.

Consumers are more likely to buy in response to coupons, rebates, price packs, premiums,

patronage awards, contests, product demonstrations, and warranties. The sales force operates

more vigorously in response to contests with prizes for superior performance.

Because of the variety of sales promotion tools, marketers need experience in knowing which

to use. Some large companies have a sales promotion specialist who can advise brand

managers. Or the company can engage the services of a specialist sales promotion agency.

The main need is to not only use promotions but to review and record results so that the

company can improve its sales promotion efficiency over time.

Although most sales promotions increase sales, most lose money. One analyst estimated that

only 17% of a given set of sales promotion campaigns were profitable. These are the cases

where the sales promotion brings in new customers to sample the product and where they like

the new product better than their previous brand. But many sales promotions only attract

brand switchers looking for a lower price, who naturally abandon the brand when another

brand goes on sale. Sales promotions are less likely to entice away loyal users of other

brands.

Thus sales promotions work poorest in product markets of high brand similarity. They tend to

attract brand switchers who are looking for low price or premiums and who won’t be loyal to

a brand. It is better to use sales promotions in product markets of high dissimilarity where

new customers may find that they like your product and its features better than their previous

choice.

Sales promotions tend to be used more by weaker and smaller brands than stronger brands.

Smaller brands have fewer funds to spend on advertising, and for a small cost they can get

people to at least try their product.

Sales promotions in general should be used sparingly. Incessant price-offs, coupons, deals,

and premiums can devalue the brand in the consumers’ minds. They can lead customers to

wait for the next promotion instead of buying now.

Companies are forced to use more sales promotion than they want by the trade. The trade

demands discounts and allowances as a condition for putting the product on the shelf. The

trade may demand consumer promotions also. So many companies have little choice but to

comply.

Prefer sales promotions that agree or enhance your brand image and add value. Try to use

sales promotions with advertising. Advertising explains why the customer should buy the

product, and sales promotion provides the incentive to buy. When used together, ads and

sales promotions make a powerful combination.

Reasons for Growth of Sales Promotion

There are a number of reasons that are favorable to the growth of sales promotion:

1. Increasing Competition

The air of change is gaining momentum after the introduction of economic liberalization. Due

to increase in competition, companies are finding it increasingly difficult to compete on

quality. They are therefore resorting to more innovative methods of sales promotion. In order

to have a competitive advantage over its competitors like Levis, Pepe, Killer and others.

Spykar Jeans, once a year has a grand sale of up to 50%.

2. Customers Have Become More Price Sensitive

This increased price sensitivity is a direct result of rampant inflation. Economic recession is

likely to fuel this trend further, as consumers and dealers become more sensitive towards

prices. If the customers get branded jeans at half the actual price, then they are definitely

going to make huge purchases of Spykar Jeans because they want value for their money, as

they are price sensitive.

3. Sales Promotions Generally Create an Immediate Positive Impact On Sales

Advertising, personal selling and other methods of promotion produce slower sales response

compared to sales promotion. Sales promotions are mostly for short duration, for a specified

period, leading to a sense of urgency in consumers to buy now. This creates an immediate

positive impact on sales.

http://drypen.in/sales-promotion/reasons-for-growth-of-sales-promotion.html

4. Products have become more standardized

In many product categories, there is a proliferation of brands; many of them are line

extensions and me-too brands. Most brands are being perceived by consumers to be more or

less similar within a given price range because of the inability of manufacturers to develop

truly differentiated products. Under these circumstances, advertising messages are unable to

strongly influence the consumers’ perceptions and create brand franchise. As a result of these

perceptions of similarity among brands, marketers have no way but to compete on the basis

of extra benefit offered through sales promotion. Competing companies struggle to capture

market share by using every tool likely to bring sales success.

There are many unbranded jeans sold at shopping malls and places like linking road, bandra

which are bought at half the price of actual branded jeans. People who are money conscious

buy such jeans. Therefore, Spykar Jeans comes up with such discounts, which helps them in

increasing their sales and also in stock clearance, if any.

5. Consumer Acceptance

As competition intensifies and promotions proliferate, consumers have learnt to earn the

rewards of being smart shoppers. Over a period of time, they have also learnt that brands on

promotion are not necessarily of lower quality.

Spykar Jeans, if sold at disount rates, are not perceived to be a brand of low quality. Instead,

if word is out of a mega discount scheme for Spykar Jeans, then people even time their

purchase accordingly.

6. Advertising Has Become More Expensive And Less Effective

All the advertising media have become quite expensive. Audio-visual medium, which is

considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a

10 second exposure during prime time. In many cases, consumers have reached a point of

boredom due to excessive advertising on TV. Some consumers even consider advertising as

an intrusion into their privacy, leading to zapping (surfing channels). Firms with small

budgets cannot compete with big companies, which spend huge sums of money on

advertising. For these small budget firms, sales promotion is a more cost-effective promotion

method to produce sales results.

7. Trade Has Become More Powerful

Retailers and wholesalers have become powerful and find themselves in a position to demand

extra facilities from the companies. They Channel members demand more incentives to get

the desired results. Manufacturers do not seem to have any alternatives but to concede to their

demands, keeping in view the competitive market conditions. In shopping malls like Globus

and Lifestyle, decent margins have to be paid to them in order to have shelf visibility for your

brand.

8. Emphasis on Sales Volumes

Towards achieving the long-term profit goals, manufacturers try to attain high sales volume.

Brand managers and product managers find themselves under pressure to achieve short-term

sales results for the sake of their careers. Compared to any other promotional method, sales

promotion is a more effective method to generate short-term sales volume.

9. Sales Promotions Maximize Profits

A number of economic theories conclude that a company can maximize profits by using sales

promotion. Such promotions can permit price discrimination by allowing the brand to

compete in 2 or more different market segments. Sales promotion may allow a premium

brand to compete with a lower tier brand among price sensitive consumers. For example, a

premium brand of toilet soap may be on promotion in some price sensitive markets, while in

the remaining markets it is sold at its normal price.

10. Introducing an Element of Interest:

There are a number of promotions, which are often called interest promotions. Some of the

more popular interest promotion techniques are samples, contests, and sweepstakes, free

premiums and mail-in premiums. These promotions create an element of interest and excitement,

and consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc.

11. Impulse Buying Is Increasing

The number of marginal customers is increasing. Displays at the point of purchases lead to

impulse buying by consumers, more so if the items on display are not expensive. There is a

popular saying in Hindi, “Jodikhtahai, Vohbiktahai.”

12. Sales Promotion Specialists Are Available

As a result of economic liberalization, the number of management institutions has increased.

This has lead to the availability of specialists, who are not only well paid but can handle this

specialized work more efficiently in the current market conditions, where sales promotion has

become more important.

13. Excess Stocks

Because of increasing number of brands, it is difficult for manufacturers and dealers to

anticipate future sales. This, at times, leads to excessive inventories, and the quickest way to

clear that is to go for sales promotion.

Advantages of Sales Promotion

Sales promotions have a significant effect on the behavior of consumers and trades people.

Such promotions can bring in more profits for the manufacturers because they permit price

discrimination.

1. Price discrimination:

Producers can introduce price discrimination through the use of sales promotions. They can

charge different prices to different consumers and trade segments depending on how sensitive

each segment is to particular prices. Coupons, special sales events, clearance sales and

discounts are examples to explain the phenomenon.

http://drypen.in/sales-promotion/advantages-of-sales-promotion.html

Often such price discrimination are offered in specific cities in the country, Bajaj Auto Ltd.

started the scheme on 20th august 2001, whereby if you buy a Bajaj Spirit two-wheeler you

get Rs.3000/- off, valid only in Ahmadabad.

2. Effect on consumer behavior:

As sales promotions are mostly announced for a short period, customers may feel a sense of

urgency and stop comparing the alternatives. They are persuaded to act now rather than later.

With every 500g pack of Tang, you get a free Tang glass. Offer valid only till stocks last.

3. Effect on trade behavior:

Short-term promotions present an opportunity and encourage dealers to forward buy. This

forward buying ensures that retailers won’t to go out of stocks. As dealers have more than

the normal stocks, they think it advisable to advertise in local media, arranged displays and

offer attractive promotion deals to consumers. These actions help in increasing the store

traffic. Buy 2 dozen shampoo sachets & get 2 sachets free.

4. Regional Differences:

The South is generally characterized by greater degree of going out and people tend to drink

outside the house. The Tamilian, consumer in particular, is value oriented, rational and looks

up to film stars, while the Keralite is more international in his outlook. The Bangalorean is as

cosmopolitan as his Mumbai or Delhi counterpart. Such factors have to be taken into

consideration while providing incentives to the customers.

Disadvantages of Sales Promotion

While sales promotion is a powerful and effective method to produce immediate short term

positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is

speed up the killing of a bad product.

1. Increased price sensitivity

Consumers wait for the promotion deals to be announced and then purchase the product.

This is true even for brands where brand loyalty exists. Customers wait and time their

purchases to coincide with promotional offers on their preferred brands. Thus, the routine

sales at the market price are lost and the profit margin is reduced because of the discounts to

be offered during sale-season.

‘The Diwali Bonanza Offers’ on electronic goods.

2. Quality image may become tarnished:

If the promotions in a product category have been rare, the promotions could have a negative

effect about its quality image. Consumers may start suspecting that perhaps the product has

not been selling well, the quality of the product is true compared to the price or the product is

likely to be discontinued because it has become outdated.

The Smile Powder offer of “Buy 1 and get 2 free” went on and on. Ultimately people stopped

asking for the product as the on-going sales promotion strategy made the customers perceive

it to be a cheap and an inferior product.

3. Merchandising support from dealers is doubtful:

In many cases, the dealers do not cooperate in providing the merchandising support nor do

they pass on any benefit to consumers. The retailer might not be willing to give support

because he does not have the place, or the product does not sell much in his shop, or may be

he thinks the effort required is more than the commission/benefit derived.

4. Short-term orientation:

Sales promotions are generally for a short duration. This gives a boost to sales for a short

period. This short-term orientation may sometimes have negative effects on long-term future

of the organization. Promotions mostly build short-term sales volume, which is difficult to

maintain. Heavy use of sales promotion, in certain product categories, may be responsible

for causing brand quality image dilution

PULL STRATEGY

In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and

consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free

samples, consumer premiums, etc are used. If this strategy is also chosen to include

advertising, then, there are large advertising expenditures.

The objective of such promotional efforts would be to create sufficient consumer demand to

pull the product through the channels that is the consumers are encouraged to demand the

product from retailers who in torn place orders with wholesaler or manufacturer to meet the

consumer demand.

This strategy may require little promotional efforts from the resellers except to stock input the

product on shelves.

A pull strategy is appropriate when

The product demand as high.

It is possible to differentiate the product on the basis of real or emotional features.

Brand consumers show high degree of involvement in the product purchase,

There is reasonably high brand loyalty and

Consumers make brand choice decision before they go to the store.

Push Strategy for Sales Promotion

If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer

becomes very dependent on their personal selling abilities and efforts.

The promotional efforts are focused at pushing the product through the distribution channels;

the resellers may be required to display, demonstrate and offer discounts, to sell the product.

The communication to resellers is generally through trade circulars or the sales

force.

Push strategies generally appropriate for

Product categories where there is low brand loyalty

Where many acceptable substitutes are available in the market.

Relatively new products are to be launched

When the brand choice is often made in response to displays in the stores,

The product purchase is unplanned or on impulse and

The consumer is familiar and has reasonably adequate knowledge about the product.

Manufacturers, who cannot afford to engage in sustained mass advertising, often use push

strategy and offer effective incentives to dealers.

Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates

worth Rs.5 each free.

Through this offer the company is pushing its product to the retailers and now that the retailer

has enough incentive the retailer stocks more and thus it becomes essential for the retailer to

push the product to the consumers.

Techniques of Sales Promotion

Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are

called consumer sales promotions. Manufacturer announced promotions to consumers are

based on

Objectives of consumer market sales promotions

The following basic objectives can be pursued with sales promotions in the consumer market:

1. Stimulate trial purchase:

When a firm wants to attract new users sales promotions tools can reduce the consumer

Consumer Sales Promotion and Methods of Promotion

Price discounts or price-off deals:

http://drypen.in/sales-promotion/techniques-of-sales-promotion.html

Price deals are probably the most commonly used promotional techniques.

A price deal for a customer means a reduction in the price of the promoted product and the

consumer saves money on purchase.

Example:

Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price,

now available at Rs. 12.50 only.

Price discounts are communicated through POP advertising, window displays, sales people,

advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining

the attention of consumers, particularly at the point of purchase among similar brands and

may also encourage unplanned or impulse buying.

Price pack deals

Price pack deals are also called value packs. They can take any of the two forms:

1. Bonus pack

In case of a bonus pack, an additional quantity of the same product is offered free when the

standard pack size of the product is purchased at the regular price.

Example:

Godrej Color Gloss triple action shampoo, offers 20% extra free. 100ml +20ml.

Sunsilk shampoo (HLL) 400ml bottle gives 33% more free.

Dettol shaving cream gets 40% extra free.

Bisleri – 20% extra free (Bada Bottle, Same price)

The Banded pack is when the marketer develops special packs of the product containing more

quantity but the price is proportionately low. This is a method to “load” the consumer up with

the product. This technique is often used to introduce a new large size of the product or to

encourage continued usage and also to increase consumption.

The offer is termed as “banded pack” when 2 or more units of the products are sold at a

reduced price compared to the regular price.

Another variation of this technique is “buy 1 get 1 free” or some similar offer, it could be

“same for less” or “more for the same.”

Example:

Fairglow soap – buy 3 get 1 free,

The main advantage of this tool is that extra product may encourage increased usage and help

sustain the habit. Also among other similar brands, a bonus pack stands out at the point of

sale.

2. Refunds and Rebates:

Refund is the repayment of total money paid for purchase, while the rebate represents

repayment of only part of the money paid for the purchase. Refund offers seem to work very

well in guaranteeing the trial of a product or service since there is no risk involved for the

customer because of the promise of total refund of the purchase amount.

Refunds and Rebates play an important role in the consumer durable segment because the

product price is reduced to a great extent because of the rebate offer.

Example:

“Tajmahal Tea” guaranteed its taste by openly telling the public of its offer that “agar chai

pasandnahiaaie, toh pure paisevaapas”!

After having launched it new product Whisper Ultra Thin, confident about the product quality

and confident about offering the promised product, to increase its trail and usage, had started

the money back offer.

3. Coupon:

A coupon entitles a buyer to a designated reduction in price for a product or service. Coupons

are the oldest and most widely used form of sales promotions. Coupons bear an expiry date

and cannot be redeemed after the cutoff date.

The main Advantages of coupons are:

1. Encourage brand switching

2. Stimulate trial for a product

3. Take off the attention from price

Fair and Lovely dark circle removal cream to create more product trials has coupons in the

newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack.

4. Contests and Sweepstakes:

Contests and sweepstakes can draw attention to a brand like no other sales promotions

technique. A contest has consumers compete for prizes based on skill or ability. Winners in a

contest are determined by a panel of judges or based on which contestant comes closest to a

predetermined criterion for the contest.

Contests were very often used earlier where people have to write slogans, poems, stories etc.

generally “I like the product because …” and the best ones won prizes. But off lately,

contests are becoming less and sweepstakes increasing. People are more willing to play on

luck rather than participate by showing their abilities.

A sweepstake is a promotion in which winners are determined purely by chance.

Consumers need only to enter their names in the sweepstakes as a criterion for winning.

Some popular types of sweepstakes also use “scratch-off cards”.

Contests and sweepstakes often create excitement and generate interest for a brand, but the

problems of administering these promotions are substantial. One problem is that the game

itself may become the consumer’s primary focus, while the brand becomes secondary. The

technique thus fails to build long-term affinity for the brand.

Example:

Britannia khao world cup jao campaign has taken the market by a swing.

Under the offer you collect points available on Britannia biscuit packets and exchange 100

points for a scratch card, which has various gifts and the 100 world cup tickets. The offer was

actually introduced during the last world cup and had shown phenomenal results. Sale

increased tremendously; there was an increase in the sales by 25%, claims the company. So

it is being done this year too. This year too the contest is showing good results.

5Sampling:

Getting consumers to simply try a brand can have a powerful effect on future decision-

making. Sampling is a sales promotion technique designed to provide a consumer with an

opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a

popular technique is an understatement. Sampling is particularly useful for new products, but

should not be reserved for new products alone. It can be used successfully for established

brands with weak market share in specific geographic areas.

Sampling Techniques

1. In-store sampling

Lakme has in-store trail products. Since it in the cosmetics market it is very essential to

provide samples, many stores in Mumbai from time to time have Lakme sampling offers.

Where they allow you to try the product and then buy it.

2. Door-to-Door sampling

Whisper has done door-to-door sampling, sampling through schools, newspapers, etc. even

now after so many years of its launch it does sampling because of the new target base that

gets added every year.

3.Newspaper sampling

Align="justify">Again Whisper and Pantene have done sampling through the newspapers.

http://drypen.in/sales-promotion/sampling-techniques.html

4. On-package sampling

Fair glow, a lot of free Fairglow soaps were available with many other products, especially

other HLL products.

5. Mobile sampling

Many road shows and mobile vans distribute free products or offers.

Free Movie tickets, disco passes, pens…are often distributed.

6. Trial offers

Trial offers have the same goal as sampling – to induce consumer trial use of a brand- but

they are used for more expensive items. Exercise equipment, appliances, consumer

electronics, etc. the expense to the firm of course can be formidable. Segments chosen for this

sales promotion technique must have high sales potential.

Premiums are items offered free or at a reduced price, with, the purchase of another item.

Many firms offer a related product free. The main advantage of Premiums is that they offer

not only that one product but also another product, which may influence the customer, a lot to

buy the product, especially if the other product is worth it.

Also new products are given free with established brands to stimulate trial of the new brand.

Ponds – Buy Ponds cold cream 100ml and get a ponds body lotion 50ml pack free.

Pepsodent toothpaste – buys 100gm and gets 4 Clinic Plus sachets free.

Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars, etc.

The message gets placed on a useful icon, and is given to the consumers with no obligation.

Pepsodent toothpaste 100gm pack gets free dental insurance worth Rs.1000.

Buy a Fairglow fairness cream and get a mirror free. Many other kids products are influence

a lot by such specialties especially liked by the kids like tattoos, masks, tazo, cricket bats etc.

hence products that have such offers sell more than the other brand available.

Ruffles lay, get free Tazo, Rasna, and get free Prankies

Continuity/frequency Programs

In recent years, one of the most popular sales promotion techniques among consumers has

been “frequency Programs”. The main objective of such Programs is encouraging repeat

purchases or repeated visits to particular retail shops. Frequency Programs offer consumers

discounts or free product rewards for repeat purchase or patronage of the same brand or

company.

Shoppers stop started the “First Citizens’ Club” and enrolled customers as ‘members’ of the

shoppers club by charging a fee of Rs.150. The customers were entitled to a variety of

benefits by collecting points.

Brand placement

Brand placement often referred to, as product placement is the sales promotions technique of

getting a marketer’s brand featured in movies and television shows. The use of a brand by

actors and actresses or the mere association of the brand with a popular film/ television show

can create a positive image and have a huge impact on the sales of a brand.

Coke in Yaadein, Pepsi in Khushi, ICICI Bank in Baghbaan

Event sponsorship

When a firm sponsors or co-sponsors an event such as a rock concert, a cricket match, etc. the

brand featured in an event immediately gains credibility with the event audience. The

audience attending an event already has a positive attitude and affinity for the contest that

they choose to attend. When this audience encounters a brand in this very favorable reception

environment, the brand benefits from the already favorable audience attitude.

Samsung & LG keep sponsoring cricket matches.

Exchange offers

Consumer durables market is the one where exchange offers are used the most. Almost all the

TVs, Refrigerators, Washing Machines, etc. have exchange offers.

Samsung - On exchanging old TV for a new Samsung Plano, up-to Rs. 5000 off.

On exchanging old TV for a new Samsung Hitron Digital, uptoRs. 3000 off.

On exchanging old refrigerator for a new Samsung refrigerator, uptoRs. 8000 off.

Internet promotions

They are the most recent form of sales promotions. They are promotions that are done via the

Internet. It is becoming increasingly popular because of the large use of Internet. But still it

has a lot to develop.

Baazee.com everyday offers some or the other discounts

Information on Product Advertising

A product is anything that can be presented to a market, so a product is not only an item you

can buy in stores, but also a brand, an organization, a service or even an idea, and you need to

advertise your product to get your consumers to notice you.

CHAPTER - 6

Customer relationship management and satisfaction survey

Our premise is that customers will buy from the firm that they see as offering the highest

perceived value. Customer perceived value the difference between the prospective customer’s

evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Total consumer value is the perceived monetary value of the bundle of the economic,

functional and psychological benefits customers expect from a given market offering. Total

customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, using,

and disposing of the given market offering.

Total customer satisfaction

Whether the buyer is satisfied after purchase depends on the offers performance in relation to

the buyer’s expectations. In general, satisfaction is a person’s feeling of pleasure or

disappointment resulting from comparing a product’s perceived performance in relation to his

or her expectations. If the performance falls short of expectations, the customer is

dissatisfied. If the performance matches the expectations, the customer is satisfied. If the

performance exceeds expectations, the customer is highly satisfied or delighted.

The link between customer satisfaction and customer loyalty is not proportional.

Customer Expectations

How do buyers form their expectations? From past buyin experience, friends’ and associates’

advice, and marketers’ and competitors information and promises. If marketers raise

expectations too high , the buyer is likely to be disappointed. However, if the company sets

expectations too low, it won’t attract enough buyers.

DRIVING TIPS Customer perceived value

Drive those fears away Drive away City Blues Warming the Winter Worries

Drive those fears aways

Here are a few tips on planning ahead when you have to hit the road.

Check the weather. A complete weather check can help you pack the right clothes,

plan an alternate route, or in cases of extreme weather, a different time to travel.

Make sure your vehicle is ready for a long road trip. Check your oil, tires, battery,

cooling system and all belts and hoses. Check to see if all the fuses are there and in

good condition. Always carry extra fuses, at least one of every size. Inspect your tyres

periodically for unusual wear. Look close for cuts, punctures, embedded screws, nails

and other objects, big or small. It is equally important to keep your spare tyre up to

par.

Ensure everyone is buckled up. Have child safety seats checked for proper

installation.

Allow plenty of time to drive and reach your destination. Alleviate unnecessary stress

by taking breaks for meals, sightseeing, and Bathroom stops.

Keep your distance between vehicles. Assume other drivers, especially those of

heavier vehicles on the highway, may attempt risky Maneuvers such as sudden lane

changes. Drive defensively!

Carry a cellular phone with you. Remember that if caught talking on the cellular

phone while driving, you can be fined. Make sure that children know how to use the

cell phone to get help in an emergency.

Don't overfill your vehicle with luggage. A cramped vehicle is uncomfortable for the

driver and passengers. Good visibility is essential.

Choose a carrier if necessary.

Travel during off-peak times, if possible in order to avoid traffic congestion.

Don't stop exercising just because you're on the road. Take a walk or go for a run.

Any physical activity will greatly reduce the stress of a road trip.

When traveling with pets, plan accordingly. Find a veterinarian in the area you are

traveling to, and on the way to your destination. He'll be a real help if your pet

becomes ill or gets injured.

Breakdowns can be stressful and even frightening. Taking a few steps in advance can

save you time, emergency service costs and a headache. Have an emergency kit ready

for many different situations. The kit should meet your individual needs and be

equipped with items ranging from spares, light sources, fuses, tyre inflators, to safety

kits and other items to attract or provide help.

Personal items should be gathered to complete the emergency supplies. Keep in mind

your life-style, your family and the regions where you travel and compile items

accordingly.

Drive away City Blues

The best safety device in a car is a well-trained driver

Have some tips that can make your driving through the same city roads not only

comfortable, but also delightful.

Check out these 'smooth sailing (read: driving)' tips that will make driving in the city, a

whole new experience.

Avoid filling stations at rush hours. Never head towards the filling station during

rush hours. Make sure to fill up the fuel tank and check tyre pressure at your

convenience.

Drive within the speed limits. Avoid the urge to over speed and cross speed limits.

Remember, being five minutes late in this world is better than being five minutes

early to the next.

Always use safe driving accessories. It is very important to check that all the

accessories are functioning properly. Adjust the angle of the rear vision mirror

according to your own convenience before starting your car. Seat belts and child

lock ensure prevention before a mishap occurs.

Talking on cellular phone while driving is a strict NO. Using cellular phones

while driving can be fatal. While speaking on the cellular phone your attention can

be diverted from the road ahead. There may be unexpected slowing down, sudden

lane changing, etc. by you.

Avoiding honking unnecessarily. Do not misuse the privilege of having a horn at

your disposal. Blowing the horn suddenly creates confusion among fellow drivers.

Prolonged honking and the use of certain kinds of horns also contribute to noise

pollution.

Change lanes only with indication. Do not change lanes suddenly and without

indicating your intention to move to a different lane. Always overtake a vehicle

from its right-hand side.

Safe backing saves a lot. Careful backing of one's car at low speed and with a

backing signal on can help prevent any collision. This becomes even more

important in the generally crowded public parking places, where one has to be

really deft to man oeuvre the car in or out.

Relax on seeing red. There's not much you can do about a traffic signal that has

just turned red as you approached the crossing! So why not take it as an

opportunity to spend a few moments of relaxation?

Warming the Winter Worries

Winter driving is capable of challenging the most seasoned of drivers. The long hours of

darkness coupled with chilly winds, fog, and snow in some parts of India make driving

difficult. Here are some tips to prepare you to drive away those nippy blues!

Warming up the engine: Though it is very important not to start driving before your

engine is warmed up. Do not warm it up with too long idling - 60 to 100 seconds is

usually enough time to allow your engine to idle. A cold engine will warm up faster

when the vehicle is being driven than when left to idle for long periods of time. When

the weather is unusually cold, remember to drive at slower speeds for a few miles to

give your car time to warm up.

Be sure your vehicle is maintained properly: Lights, brakes, windshield wipers,

defrosters, radiator and other parts of your vehicle should be in good working

condition.

Under the hood: Check the battery. It takes more power to start a car in the cold.

Ensure clean, tight connections and proper fluid levels. Clean corrosion from battery

terminals regularly.

Heater & Defogging: Always use the heater with the air conditioner's toggle button

turned on 'Fresh air' mode. Set air intake control and air flow control to a well

ventilated position and the temperature control function to a comfortably warm

position. When the car is fogged from inside, the AC can be used for increased

defogging action.

Check tyre pressure: A chilly morning is probably a good time to check tyre inflation

pressures.

Slow down: While driving through fog, ensure you drive slowly and keep your eyes

trained on the vehicle ahead of you. You should ideally drive at a speed that allows

you to stop within the distance of your visibility.

Don't tailgate: Never hang on to the lights of the vehicle in front, it only gives a false

sense of security.

Fogging inside the car: Turn on the defroster and blower to eliminate condensation on

the insides of your windshields and windows.

Lights: Use low-beam lights. In a fog, high beams reflect back on the driver, actually

reducing visibility further.

Indicators: Have your fog lamps and indicator lights on. Getting high mounted stop

lights may be a good idea for increased visibility.

Avoid sudden stops and turns. Remember, the driver behind you cannot see well,

either.

Maintenance Tips

Wax Works

If you want to keep your car for as long as possible and want it to look and run great, here are a few do-it-yourself maintenance tips from Hyundai :

Regular waxing will keep a car looking new for many years. If rainwater does not bead on the painted surfaces of your car, it's time to wax it. If you wax the car yourself, make sure you start with a clean car and never work in

direct sunlight. Run your hand over the surface, it should feel smooth. If it feels gritty like bits of sand embedded in paint, then use a non-abrasive cleaner to clean the paint.

Only use products designed for automotive finishes. After you finish you should go over the entire surface to look for waxy residue, especially around trim and body seams.

If your car has a black trim, keep the wax away from it. Some waxes leave a chalky film on dull black trims, such as rubber and plastics.

Before beginning the job, examine the paint closely for chips and scratches and touch them up. Touch-up paint is available at most auto supply stores for the most popular paint colors.

Don't Let Your Tyres Tire:

Here are some basics to ensure that your tyres are in shape...after all good-looking tyres stand great-looking cars!

It is very important to ensure that your tyres always have the correct air-pressure. This small check itself not only prolongs the life of your tyre but also improves fuel consumption. The air-pressure should be ideally checked when tyres are cold, since tyres that have been driven for sometime build up heat inside, and will show incorrect pressure.

All tyres do not wear uniformly. Hence they should be rotated (i.e. their positions interchanged) as recommended in the owner's manual. Rotation may be done between the four tyres or between all five tyres (i.e. the spare tyre too).

Check for a specific pattern of wear-patches on your tyres. This indicates that the suspension may not be proper, and is hitting against the tyres at specific points causing scuffing.

Pulling of your car to either side means that either insufficient air-pressure or that the wheel-alignment of the car is faulty.

Regularly check the tyres for small stones and metal pieces that may get lodged in the grooves.

Monsoon Maintenance Rain Relief for Your Car

It's that time of the year when the benevolent rain goods shower their blessings in plenty. Though a welcome relief from the intense summer heat, the rains often pose problems for our cars and their drivers, often leaving one stranded at odd hours. Here are some tips to help you and your car through the monsoon.

Electrical system : Make sure that loose electrical connections of your car are repaired. Exposed wires, if any, should be properly insulated. Coat battery terminals with petroleum jelly (not grease) and use a waterproofing spray to keep the electrical system moisture-free.

Tyres: Ensure that all the tyres have at least 2mm of tread depth and have sufficient tyre pressure to prevent skidding. A cracked tyre should be replaced immediately.

For your Car : -

Car body Care:

Apply antirust coating especially on the underbody of the car and attend to all the scratches and dents on the surface of the paint immediately to prevent corrosion. Apply wax on the car body as it forms a protective layer increasing the life of the car.

Engine Care:

Ensure that the engine is well serviced and watertight. Either use a spray to eliminate the monsoon moisture or unscrew the plugs and wipe them dry with a piece of cloth.

Interiors:

Most carpets rust the floorboards. Place old mast or newspapers on the carpet as they will soak up the dirty water, and keep the floorboard and the floor fittings dry. Vacuum your car interiors regularly to reduce the moisture and to keep your car smelling fresh.

Wipers:

Hard and cracked wiper blades cause scratches on the windshield and reduce visibility. Get new, non-streaking blades, and use soap solution instead of plain water for windshield cleaning. It will increase the visibility when it pours.

Brakes:

Get new break calipers as old and rusty brakes tend to fail when wet. Regular cleaning keeps the brakes dry and improves their efficiency.

For you: -

Drives show:

At high speeds, the rains create a fine sheet of water between the tyre and the read surface, which causes loss of control. Show driving enables the tyre grooves to clear this film out thus increasing the traction.

Keep the Headlights on:

When driving in rain, switch the headlights on at a low beam. It will increase your visibility and allow other drivers to notice you from a distance.

Windshield Defogging:

Direct the air towards windscreen and other glassy surfaces, it will increase the visibility during rains. However, if your car doesn't have and air-conditioner or

Safety Tricks

No Kidding, when its kids' Safety

Here are a few tips for the safety of your child when you are travelling in a car.

Teach children not to play in, or around cars. Never leave a child unattended in a motor vehicle, even with a window slightly open. Always lock your doors and trunk and keep the keys out of children's reach. Watch children closely around cars, particularly when loading and unloading. Secure children in the rear seat in approved car seats. Use booster seats for older

children. When restraining children in a car that has been parked in the heat, check to make

sure that seating surfaces and equipment (car seat and seat belt buckles) are not overly hot.

Kids can fall asleep when they have something soft to lay their heads on. So pop in a couple of pillows.

If your car has been parked outside on a hot day, make sure the car seat and seat belts are not too hot before buckling your children in the car.

Carry plenty of water or other fluids when travelling with children to prevent them from dehydration.

Woman at the Wheel

It was Sonal Sharma's 25th birthday on May 16, 2002, when she was driving down the Ridge Road in Delhi. Suddenly, a three-wheeler hit her car from the rear. She stopped immediately and stepped out to check the matter. Before Sonal could realize anything, six persons including a woman surrounded her. They snatched her necklace and fled off the scene with her mobile. Unfortunately, such incidents are frequent and it's not unique to one city or one country.

A few tips to ensure your safety:

Keep your car doors locked from inside and window panes rolled up while driving. Avoid getting into conversation with strangers who may want to know the directions,

especially at deserted traffic lights. If you feel somebody is following you, drive to a crowded spot or a police station or

call-up 100 if possible. If you sense something wrong with your car, don't stop midway, drive slowly to a

known service station or call your emergency road service numbers. Don't leave any valuables in the car, nor expose them to the passers by. Park your car in a secure place.

8 bit or 16 bit microprocessor ?

Ever got the feeling you have compromised on something with an 8-bit microprocessor under

your hood? Not really! Read on to understand what this means to you as a Hyundai owner.

What is the function of a Microprocessor under your car's hood?

New generation cars have various sensors that monitor engine performance. These include

the Knock sensor, Vehicle speed sensor and the Oxygen sensor, among others. These sensors

control the input parameters to the engine through 'actuators' like the fuel injector and the idle

speed actuator through an ECM or the Engine Management System. The microprocessor is a

part of this ECM and controls the speed at which the data is carried from the sensors to the

actuators. The process speed is normally in milliseconds.

What is the difference between a 16 bit and a 32 bit microprocessor?

The difference is faster processing. A 32 bit microprocessor processes data faster than a 16

bit which processes faster than a 8 bit. Normally, the choice of the microprocessor depends

on the volume of data to be processed, which in turn depends on the number of sensors used.

To draw an analogy, it is like using an advanced Pentium 4 PC for your large graphic

applications at work, while a simple Pentium II can fit almost your entire home computing

requirements.

What difference does it make to me as a driver?

Very little. Most of the cars sold in India today have about 8 to 9 key sensors, which control

about 4 to 5 actuators and a 8 bit microprocessor is more than adequate to handle this volume

of data efficiently. In terms of speed of processing, a couple of milliseconds hardly make any

difference to the quality of the drive or to the performance of the engine, given the above

specifications.

Steer while you brake with ABS

The most advanced braking system, the Anti-lock Braking System or the ABS is a sure

answer to every driver's search for the ultimate comfort and ease in braking even at high

speeds. ABS is designed to help the driver to remain in control of the vehicle, on difficult and

slippery terrains.

The most advanced braking system, the Anti-lock Braking System or the ABS is a sure

answer to every driver's search for the ultimate comfort and ease in braking even at high

speeds. ABS is designed to help the driver to remain in control of the vehicle, on difficult and

slippery terrains.

Chapter - 7

Social Corporate Activity of the Company

Hyundai Social Corporate activity of the company

Social Corporate activity has become the key issue in company-society relations. CSR has

taken a position of the core pillars of Hyundai Motor as the company strives to establish a

new Sustainable Business Management System based on its five primary business principles.

Hyundai Motor Company does not see itself as a mere profit-making entity. It is a

Contributing member of global society based on the responsible corporate citizenship. It is

one of the main purposes to make a better world in close cooperation with all people and

groups, including stake holders, employees, customers, shareholders, suppliers, and local

communities in the world.

Specifically in April of 2007, Hyundai Motor announced its socially responsible management

plan to fulfill its responsibility to global society.

The Conceptal Areas

Hyundai Motor socially responsible management covers three conceptual areas: economic

responsibility, social responsibility, and environmental responsibility.

- Area of strategic focus

Corporate social responsibility covers three areas: trust-based management, environmental

management..

For trust-based management, we will focus on enhancement of labor relations, mutually

beneficial cooperation with suppliers, ethics management, and transparent management. As

for environmental management, we will proactively respond to global trends and regulations

related to the environment. For social contribution, we plan to enlarge our capacity and obtain

expertise to effectively carry out global social contribution projects and participate in

volunteering programs to contribute to development of local communities.

In 2007, a year dedicated to global social contribution, Hyundai Motor Company prepared its

infrastructure to execute corporate social responsibility , as well as social contributions. It

established the 'Hyundai Motor Global CSR Network' with primary production and sales

subsidiaries around the world, and will establish a network covering all its subsidiaries

worldwide, by continuously extending the network. Hyundai also laid foundations by

promoting global CSR (Corporate Social Responsibility) activities, and by developing and

opening the 'Global CSR Web site' for information exchange.)

Corporate Social Responsibility (CSR) India

Corporate have Social Responsibility (CSR) targets to help improve community living. In

India, though the corporate understand their accountability towards the society and are

willing to take initiatives for the betterment, it becomes difficult for them to reach the

grassroots level.

We thus join hands with the corporate to help them advance their welfare initiatives to the

needy families and save on their time and human resources. We help the corporate meet their

Corporate Social Responsibility targets through NGOs with expertise in the respective field.

The very foundation of TKF was laid on the realization of a group of young corporate

professionals that it was their social responsibility to give back to the society.

Achieve your Business Social Responsibility Goals

Support some of our programs and social service initiatives.

Adopt a child, family, school, or a village to meet you social responsibility.

Corporate can sponsor a vocation training program through our ‘Sponsor a Skill’

drive.

Buy greeting cards from our partner NGOs.

With Corporate Social Responsibility in India having acquired a new dimension in the

recent years, more and more companies are increasingly realizing that it is a good hearted

investment, which brings manifold benefits to the company. Thus, all CSR activities are

being designed in alignment with the corporate business strategies.

Once you register with us for your CSR activities, you can come online at any time even after

years and get the collated record of all the work done by you and all the people who have

benefited from your support.

CSR is not new to India; companies like TATA and BIRLA have been imbibing the case for

social good in their operations for decades long before CSR become a popular cause. Inspire

of having such life size successful examples, CSR in India is in a very nascent stage. It is still

one of the least understood initiatives in the Indian development sector. It is followed by a

handful of public companies as dictated by the very basis of their existence, and by a few

private companies, with international shareholding as this is the practice followed by them in

their respective foreign country. Thus the situation is far from perfect as the emphasis is not

on social good but rather on a policy that needs to be implemented.

A lack of understanding, inadequately trained personnel, non availability of authentic data

and specific information on the kinds of CSR activities, coverage, policy etc. further adds to

the reach and effectiveness of CSR programmes. But the situation is changing. And CSR is

coming out of the purview of ‘doing social good’ and is fast becoming a ‘business necessity’.

The ‘business case’ for CSR is gaining ground and corporate houses are realizing that ‘what

is good for workers - their community, health, and environment is also good for the

businesses.

Corporate Social Responsibility Practices - the survey on CSR is timely and apt. The survey

is expected to facilitate formation of an alliance of CSR initiatives so that such initiatives can

be further stream lined, focused and converged to a powerful force of intervention. One of the

major objectives of the survey is to bring out in open the current status of CSR thereby giving

both the NGOs and the common man an understanding of the various initiatives undertaken

by corporate and the role that is played by the government in the field.

The survey underlines the various issues - current CSR policies, major stakeholders - their

current and future plans, geographical areas covered, role of civil society and government,

challenges, recommendations etc.

Eco-friendly i30 Blue makes Hyundai’s Blue DriveTM concept a production reality

(Offenbach, April 07th 2009) A new derivative has joined Hyundai’s successful i30 range, as

the first examples of the i30 Blue today rolled off the production line at the company’s

factory in the Czech Republic. Fitted with the innovative ‘Idle Stop and Go’ (ISG) system,

i30 Blue offers reduced fuel consumption and CO2 emissions and is the first model to be

launched under the company’s Blue DriveTM eco-initiative.

From April this year the i30 Blue models will be built alongside the regular i30 at Hyundai’s

modern production facility in Nošovice, Czech Republic.

Identical in appearance to the regular i30, the super-efficient i30 Blue – equipped with the

1.6-litre ‘Gamma’ petrol engine – will improve fuel efficiency by seven per cent on the

official combined cycle. Moreover, the ISG system will reduce CO2 emissions from 152g/km

to just 142g/km.

“The i30 Blue marks the launch of our Blue Drive strategy to develop affordable

environmentally-friendly vehicles, and ISG will soon feature in other models across the

range. Our market share in Europe has increased significantly in 2009, and i30 Blue will

further boost our standing – European consumers are increasingly asking for, lower-

emissions vehicles with reduced running costs. Blue Drive will introduce a number of clean-

tech solutions that improve fuel efficiency and minimize emissions,” explained Allan

Rushforth, Vice President for Hyundai Motor Europe.

ISG technology is ideal for driving in busy urban areas, where there is a constant need to stop

and start. The clever system automatically switches the engine off when traffic is at a stand-

still, then restarts, without delay when the driver wishes to pull away.

Connected to the starter motor, the ECU uses various sensors positioned throughout the car,

which detect when it is appropriate for the engine to turn off. The engine immediately

restarts in the time it takes the driver to select first gear.

“We anticipate that the new i30 Blue will be particularly well received in the European

markets where taxation systems are linked to CO2 emissions. What’s more, this model – and

future vehicles developed under Blue Drive – will help to lower Hyundai’s corporate carbon

footprint,” added Mr. Rushforth.

The first i30 Blue models will arrive in showrooms in May. Customers have a choice of 1.4-

litre and 1.6-litre petrol engines with both five-door hatchback and CW estate body -styles.

Corporate Social Responsibility

Hyundai Motor Company Australia takes its responsibility as a corporate citizen seriously.

Through our involvement in a number of important initiatives, we work in partnership with a

wide range of different people and groups, including Hyundai dealerships, employees,

customers, shareholders, suppliers, and local communities within Australia.

Hyundai actively reinvests back into the local community. Below are some examples of

Hyundai Motor Company Australia’s involvement with our local communities.

RSPCA

In WA and NSW, Hyundai supports the 'Million Paws Walk' which is the RSPCA's major

national fundraiser. Every year over 60,000 people and 25,000 pets hit the pavement to raise

much needed funds for the RSPCA.

Children's Hospital at Westmead, Sydney

Hyundai Sydney metro dealers support the Children's Hospital at Westmead in Sydney,

which is a stand-alone service dedicated to paediatrics. Wesley Hospital Kim Walters

Choices

In Queensland, Hyundai supports the Wesley Hospital 'Kim Walters' Choices Program

(Choices) which offers support for women and men diagnosed with breast cancer, and

women diagnosed with gynecological cancers and their families. For more information visit:

Royal Children’s Hospital Foundation

In Queensland, Hyundai supports the Royal Children’s Hospital Foundation through its

sponsorship of the 'Hyundai Harmony Cup', a multicultural community football competition.

The objective of this trust is to address the expectations of society and to initiate the concrete

steps to extend support in the field of Health Care, Educational and Vocational training,

Environment, Road Safety, Art, Science and Technology and much more.

The first trustees of HMIF are Managing Director, HMIL, President, HMIL, Executive

Director (Administration), HMIL and Legal Advisor, HMIL. The trust will get the direct

funding from Hyundai Motor India (HMI) only. In addition to this HMI plan to contribute Rs

100/- of each car sale to HMIF funds.

The first contribution of HMIF amounting Rs 35,00,000 has been handed over to Dr S. P

Tyagarajan, Vice-Chancellor - University of Madras, for the preservation of the Senate House

of the University. Hyundai has always been a fore runner in the Corporate Social

responsibility since its inception and has played the role of a responsible corporate citizen

with a serious commitment and continuous improvement.

On this proud occasion, Mr H S Lheem, Managing Director, HMIL, said "Hyundai is not

only committed to making vehicles that make the world a better place to live in but also

dedicated to meet or exceed societal needs which can benefit the society. It gives me a great

satisfaction to share that members of Hyundai family have come forward with a full swing to

make their contribution to this social initiative."

"Hyundai has been very successful in the Indian market since its beginning, we thank the

whole nation for keeping such a good faith in us, now it's our turn to contribute to the

society," he added.

Objectives of Hyundai Motor India Foundation (HMIF)

To promote, establish, support, maintain or grant aid in cash or in kind directly, and/or

through partnership programs and/or through community initiatives to all public charitable

purposes for the benefit of the poor, needy, underprivileged, socially backward and the

overall benefit of the general public without any distinction as to creed, caste, sex or color. It

is expressly declared that the public charitable purpose in law is without limitation to the

objectives detailed herein below and all provisions hereof shall be construed accordingly. No

activities of the Trust shall be carried out outside India.

(i) Health Care

It will benefit the overall general public by preventive and curative health care programs,

related medical research and training programs, including awareness and campaign programs

through hospitals, medical schools, colleges, universities and institutions etc.

(ii) Education & Vocational Training

It will benefit the overall general public by providing quality primary, secondary and higher

education, vocational training, life skills education, scholarships, related research and training

programs, including awareness and campaign programs through schools, colleges,

universities and institutions, governmental and non-governmental organizations, conduct of

conventions, symposiums and guest lectures.

(iii) Environment

It will benefit the overall general public by promoting a pollution free environment through,

related research and training programs, including awareness and campaign programs,

protection of bio-diversity in national parks, reserve forests, sanctuaries, and the like, through

schools, colleges, universities and institutions, governmental and non-governmental

organizations, conduct of conventions, symposiums, guest lecturers and campaign programs.

(iv) Road Safety

It will benefit the overall general public by road safety programs, related research and

training programs, including awareness and campaign programs through schools, colleges,

universities and institutions etc.

(v) Arts, Science & Technology

It will benefit the overall general public by science and technology, promoting performing

arts and crafts, architecture, culture, heritage and cuisine, related research and training

programs, including awareness and campaign programs through schools, colleges,

universities etc.

(vi) Natural Calamities and Disasters

It will benefit the overall general public by granting relief assistance to the victims during

natural calamities and not limited to calamities such as famine, earth quake, flood, fire,

pestilence, etc., through institutions, governmental and non-governmental organizations,

conduct of conventions, symposiums and guest lectures.

(vii) Donor Activity

To render assistance, or grant aid in cash or in kind to increase the effectiveness of the

Private, Public, Non-Governmental and Governmental Donors in grant making efforts and to

encourage new donor activity for the poor, needy and for the overall benefit of the general

public in India.

Notes to Editor

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

Company, South Korea and is the second largest and the fastest growing car manufacturer in

India. HMIL presently markets 30 variants of passenger cars in six segments. The Santro in

the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D

segment, the Sonata Embera in the E segment and the Tucson and Terracan in the SUV

segment.

The company recorded combined sales of 252,851 during calendar year 2005 with a growth

of 17.26% over year 2004. HMIL is India's fastest growing car company having rolled-out

over 970,000 cars in just over 80 months since its inception and is the largest exporter of

passenger cars with exports of over Rs. 1,800 crores. HMIL has recorded a growth of 27.2%

in exports over the year 2004.

HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the

most advanced production, quality and testing capabilities in the country. In continuation of

its investment in providing the Indian customer global technology, HMIL has announced

plans for its second plant, which will produce 150,000 units per annum, raising HMIL's total

production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million

square meter site adjacent to the existing facility with an investment of $450-$500 million on

its new integrated facility. HMIL is investing to expand capacity in line with its positioning

as HMC's global export hub for compact cars. Apart from expansion of production capacity,

HMIL plans to expand its dealer network, which will be increased from 157 to 200 this year.

And with the company's greater focus on the quality of its after-sales service, HMIL's service

network will be expanded to over 1,000 in 2006

Increasingly, corporate executives must find new ways to address the social, economic, and

environmental effects of doing business while balancing conflicting demands on their

attention, time, and resources. Emphasizing the alignment of corporate social responsibility

(CSR) with business strategy, this program helps you define priorities, integrate social

responsibility throughout your business, and build social and business value. You will

strengthen your ability to define and implement powerful CSR strategies that position the

firm, its reputation, and its way of doing business for enduring success.

What You Can Expect

Corporate Social Responsibility explores the challenges and opportunities of current CSR

models, as well as the next generation of issues that business practitioners will face. New

frameworks and concepts will help you sharpen your program's focus and integrate social

responsibility throughout operations in order to position your firm for higher levels of

success.

Your Course of Study

This intensive program focuses on the practices of companies that have successfully created

business and social value through focused, aligned, and integrated CSR programs. It provides

the practical knowledge and insight you need to improve decision making, leverage

partnerships, manage risk, and measure performance.

Who Is Right for the Program

The program is specifically designed for senior executives who direct corporate social

responsibility programs or oversee departments such as public affairs, philanthropy,

sustainability, environmental health and safety, or community affairs. Senior officers with

profit-and-loss responsibilities will benefit from attending.

What You Can Expect

Improving Your Organization's Performance

Corporate social responsibility (CSR) is integral to long-term business success. Today's

organizations must be increasingly mindful of the impact that their operations have on society

at large, and this requires much more than isolated measures. In a climate of heightened

social awareness and instant access to information, CSR must be a fundamental part of your

company's targeted practices, broad objectives, and overall culture.

This program is designed to help executives fully integrate social responsibility in ways that

benefit both society and business. You will learn how to develop an overarching CSR

strategy suited to the unique requirements of your company—one that addresses the social,

economic, and environmental effects—as you better position your organization for immediate

and future success.

Taking Your Skills to the Next Level

In this program, you will enhance your ability to set priorities, measure results, and

communicate the value of CSR efforts across your organization. Specifically, you will learn

how to:

Create competitive advantage through CSR

Assess risks and opportunities before making capital investments or other business

decisions

Align CSR strategies with organizational goals and capabilities

Evaluate current initiatives and consolidate efforts around key objectives

Present a business case for CSR initiatives

Implement CSR at all levels of the company

Understand how CSR directly affects current and future regulatory practices

Foster successful interaction with key internal and external stakeholders as well as

governments and nongovernmental organizations (NGOs)

Your Course of Study

Through recent case studies, lectures, and small group discussions, you will examine how

successful businesses develop a CSR strategy that is integrated with the long-term needs of

the business. In addition, you will have numerous opportunities to learn from the diverse

experiences and perspectives of peers from around the world. Core topics include:

Integrating Social and Organizational Values

Making the business case for social responsibility by calculating costs and benefits

Recognizing the links between the welfare of society and the success of the

organization

Examining opportunities designed to benefit the organization as well as the

community

Integrating corporate social responsibility best practices into key business areas

Identifying and managing the positive and negative impacts of business activities on

society

Driving Social Responsibility throughout the Organization

Aligning social responsibility strategies and goals with organizational objectives

Embedding CSR within the business culture to sustain the strategy over the long term

Building CSR expertise through hiring and partnerships

Integrating social responsibility metrics into general performance management

systems

Disseminating information on CSR policies throughout the organization

Demonstrating how CSR practices continue to affect individuals and departments

Communicating the impact of social responsibility to capital markets, shareholders,

and other stakeholders

Managing Risk and Decision Making

Evaluating complex environments and potential impacts before investing capital or

making business decisions

Interacting successfully with governments, NGOs, and stakeholders

Decentralizing CSR to allow for local differences and optimizations across the

organization

Identifying current vulnerabilities and predicting future pitfalls related to business

practices

Developing preparation and prevention processes for handling crisis scenarios

Integrating CSR initiatives in vendor and supplier agreements

Who Is Right for the Program

This program is designed for senior executives who direct CSR programs or oversee

departments such as public affairs, philanthropy, sustainability, environmental health and

safety, or community affairs. Senior officers with profit-and-loss responsibilities will benefit

from attending.

Individuals or teams from companies representing a variety of industries are appropriate.

While the perspective is corporate, a limited number of senior nonprofit executives who

supervise large-scale strategic corporate partnerships will be considered for admission,

ideally as part of a corporate-nonprofit team.

This program is not targeted to management support organizations or consulting firms.

Typical participant titles may include, but are not limited to:

CEO/Executive director

Senior vice president

Vice president of corporate and community relations

Vice president of corporate social responsibility

Vice president of development

Vice president of environmental health and safety

Director of corporate social responsibility

Director of corporate/community relations

Documents

Marketing strategy of hyundai motors in chandigarh