Description
This research tries to give an insight into the present market scenario of passenger cars , pan India taking into consideration the dealers as well as consumers of Hyundai Motors India Limited vis-à-vis its major competitors.
INTRODUCTION
1.1 PROFILE OF THE INDUSTRY
BIRTH OF CARS
The birth of the car as we know it today occurred over a period of years. It was only
in 1885 that the first real car rolled down on to the streets. The earlier attempts,
though successful, were steam powered road-vehicles.
The first self-propelled car was built by icolas !ugnot in 1"#$ which could attain
speeds of upto # kms%hour. In 1""1 he again designed another steam-driven engine
which ran so fast that it rammed into a wall, recording the world&s first accident. In
18'" (ran)ois Isaac de *iva+ designed the first internal combustion engine. This was
subse,uently used by him to develop the world&s first vehicle to run on such an
engine, one that used a mi-ture of hydrogen and o-ygen to generate energy.
This spawned the birth of a number of designs based on the internal combustion
engine in the early nineteenth century with little or no degree of commercial success.
In 18#' thereafter, .ean .oseph /tienne 0enoir built the first successful two-stroke gas
driven engine. In 18#1 he again built an e-perimental vehicle driven by his gas-
engine, which ran at a speed of 2 kms%hour. These cars became popular and by 18#5
could be fre,uently espied on the roads.
The ne-t ma3or leap forward occurred in 1885 when the four stroke engine was
devised. 4ottileb 5amlier and icolas 6tto worked together on the mission till they
fell apart. 5aimler created his own engines which he used both for cars and for the
first four wheel horseless carriage. In the meanwhile, unknown to them, 7arl 8en+,
was in the process of creating his own advanced tri-cycle which proved to be the first
true car. This car first saw the light of the day in 188#.
1
The season of e-periments continued across the seas in the 9nited :tates where ;enry
ford began work on a horseless carriage in 18$'. ;e went several steps forward and in
18$#, completed his first car, the ,uadricycle in 18$#. This was an automobile
powered by a two cylinder gasoline engine. The ford motor company was launched in
1$'2 and in 1$'8 he catapulted his vehicle, model t ford to the pinnacle of fame.
!ontinuing with his innovations, he produced this model on a moving assembly line,
thus introducing the modern mass production techni,ues of the automobile industry.
The modern car, therefore comes from a long list of venerated ancestors, and its
lineage will, hopefully grow longer as we progress<
=ith the invention of the wheel in >''' 8.!., man&s 3ourney on the road of
mechani+ed transport had begun. :ince then he continually sought to devise an
automated, labour saving machine to replace the horse. Innumerable attempts reached
conclusion in the early 1"#'s with the building of the first steam driven tractor by a
(rench captain, icolas .acob !ugnot. It was however left to 7arl 8en+ and 4ottlieb
5amlier to produce the first vehicles powered by the internal combustion engine in
1885. It was then that the petrol engine was introduced, which made the car a
practical and safe proposition. The cars in this period were more like the cars on our
roads today.
=ith cars came the era of speed. The first ever land-speed record was established
about a 1'' years back, in 18$8. !ount 4aston de !hasseloup-0aubat of (rance drove
an electric car ?in @cheres near AarisB at a speed of 2$.1> miles per hour. This flagged
off the era of Cwheels racing&, which lasted till 1$#>, after which 3et and rocket
-propelled vehicles were allowed. Then onwards, it has been one big 3ourney...on the
roads.
1
INDUSTRY AS WHOLE
Aost 1$$1, this country has witnessed unprecedented all round development due to
liberali+ation. It has witnessed a flood of foreign companies who have set up their
operations. The monopoly, earlier en3oyed by Indian companies has been offset. The
entire marketing scenario has changed from being a sellers& market to a buyers&
market. It is necessary for all companies to understand the needs of their customers
lest they may be out of business. !ustomer satisfaction and retention is the norm in
this dog-eat-dog market competition and cutthroat competition.
This research tries to give an insight into the present market scenario of passenger
cars , pan India taking into consideration the dealers as well as consumers of ;yundai
Dotors India 0imited vis-E-vis its ma3or competitors. This research consists of the
database, which was collected during the survey and also the findings and analysis of
the survey conducted during the research.
The research approach consists of primary data collected by survey research method
and secondary data collected from various Internet sites, product catalogues and
business 3ournals. 5irect interaction with the concerned people including interview
and ,uestionnaire are the instruments employed during the research.
The research aims at deciphering all the underlying factors considered important by
customers regarding this segment and a comparison of various companies on those
factors so as to provide logical recommendations which would prove useful to
;F95@I D6T6*: I5I@ 0IDIT/5 to maintain its competitive advantage in this
segment in times to come.
T;/ */G9I*/5 T;/:I: 8@:/5 9A6 T;/ D@*7/TI4 :T*@T/4F 6(
;F95@I D6T6*: I5I@ 0IDIT/5 .T;/ T;/:I: 8@:/5 9A6 8*@5
@5 A*659!T A6:ITI6I4 6( T;/ ;F95@I D6T6*: I [email protected];/
A*659!T G9@0ITF, T;/ 8*@5 !6:9DATI6 I !69T*F ;yundai
Dotor India 0imited ?;DI0B is a wholly owned subsidiary of ;yundai Dotor
!ompany,
uth 7orea and is the second largest and the fastest growing car
manufacturer in India. ;DI0 presently markets 1# variants of passenger cars in si-
segments. The :antro in the 8 segment, 4et+ in the 8H segment, the @ccent and Ierna
in the ! segment, the /lantra in the 5 segment, thenata /mbera in the / segment
and the Tucson in the :9I segment. The ;yundai Ierna has bagged some of the most
2
prestigious awards starting with the 6verdrive C!ar 6f the Fear 1''"&, !8!-TI 18
@uto car C8est Ialue (or Doney !ar 1''"& and CAerformance !ar of the Fear 1''"&
from 8usiness :tandard Dotoring
INDIAN AUTOMOBILE INDUSTRY
India has been the scene of some of the most frenetic deal- making, big e-pansion
announcements, and new car launches in the global auto industry. !onsider that in the
last 18 months alone 4eneral Dotors, (iat, ;onda, issan, and ;yundai have
announced Indian investments valued at roughly J1.5 billion. *ecent visits by
industry bigwigs such as (iat !hairman 0uca !ordero di Donte+emolo, *enault-
issan alliance !hief /-ecutive !arlos 4hosn, and 4D boss 4. *ichard =agoner, .r.,
who arrived in ew 5elhi on @pril 1# to help launch the companyKs !hevrolet :n
early @pril, 4hosn was in India to inaugurate a plant in ashik 3ointly run by *enault
and Indian carmaker Dahindra L Dahindra that will produce an economy car called
the 0ogan. The base model will cost J$,"'', but 4hosn also hopes to launch an ultra-
cheap model in India -- that will retail for about J2,''' -- later in the decade. Aark
locally underscores the new focus on IndiaKs high-speed car market.
*ight now, IndiaKs entire industry -- local producers and transplants -- collectively
manufacture about 1.> million vehicles a year. ThatKs e-pected to double by 1''8, and
if it does, India will surpass 8ritain and !anada in total car production. ;owever, it
still will be light years behind !hina, which is on track to hit 1' million or so in 1''".
@nd IndiaKs growth dynamics look robust. It is home to a young population, and has
rising income levels, an underserved rural market, and an economy galloping along at
$M-plus growth rates. 5uties on small cars fell from 1>M to 1#M in 1''#, though
ta-es remain somewhat high compared to !hina. The government hopes to see India
auto sales 3ump from last yearKs J2> billion to J1>5 billion in 1'1#. If they do, the
domestic auto industry could represent about 1'M of IndiaKs gross domestic product.
4athering small-car making e-pertise in India is key for automakers both to tap a
thriving market for economy cars -- and also to e-port that know-how to other
markets. 8y 1'11, the market for vehicles priced under J1',''' is likely to reach 18
million cars, or a fifth of world auto sales, according to *oland 8erger :trategy
!onsultants. ThatKs up from 11 million today.
>
India also boasts a cheap, but high-,uality labor force with considerable engineering
and manufacturing skills -- and the country is starting to build up big auto components
and engineering and design outsourcing sector that is attractive for international
players. The India auto parts business is e-pected to more than triple in annual
revenues from J11 billion to J>' billion by 1'1>.
INDUSTRY ANALYSIS:-
=ith 11 players in passenger car segment, the total installed capacity is of the order
of over a million vehicles. Dore than 15M of the total capacity remained unutili+ed
in 1''2-'>. Two players, namely, A@0 Aeugeot and Aremier @uto, among the older
Indian entities, e-ited the industry towards the end of 1$$$-''. 5aewoo plant was
closed, 4eneral Dotors and Tata Dotors are involved in taking over some operations.
The scale of operations of Indian car plants is among the lowest in the world,
rendering them uneconomic. The average capacity of an Indian car plant is >','''
units a year, as against 15',''' in .apan and the 9:N 115,''' in 8ra+il and 1"5,''' in
uth 7orea. Iolumes of 1'',''' to 15',''' are considered viable. ;owever, there
are units in India with capacities ranging from $,''' to 2',''' units a year.
Lead Players
C!"a#
y
I#d$a#
Par%#er Clla&ra%r
Fre$'#
E()$%y
Year *
I#+r"ra%$
#
S,are
-./
Daruti
9dyog 46I
:u+uki Dotor !ompany,
.apan 1''M 1$81 5'.>M
;yundai
Dotor one
;yundai Dotor !ompany,
7orea 1''M 1$$# 1$.5M
Telco
Tata
4roup one il 1$>5 1>.5M
;industa
n Dotors
!7
8irla
4roup one 1''M 1$>'s 2.>M
5
(ord
India
DLD
0td (ord Dotor !ompany 8>.11M 1$$5 1.5M
(iat India one (iat @uto :A@, Italy 1''M 1$$" '.$M
;onda
:ie1
:iel
0imited
;onda Dotor !ompany,
.apan $$M 1$$5 5.'M
4eneral
Dotors one
4eneral Dotors !orporation,
9
1''M 1$$5 1.>M
5aimler
!hry :tar one 5iamler !hrysler @4 1''M 1$$5 '.1M
:koda
India one Iolkswagen 4roup 1''1 1.'M
Toyota
7irloskar
7irloska
r 4roup
Toyota Dotor !orporation,
.apan 88.8#M 1$$" 1.1M
Total investment by the car companies is estimated at around *s 12' bn with related
component makers chipping in another *s >' to 5' bn. @t the e-isting volumes, all
car companies, e-cept Daruti 9dyog, will take two to five years to move beyond
sustainable break-even volumes.
The Indian industry now has the presence of global players like 4eneral Dotors, (ord,
:u+uki, Toyota, Ditsubishi, ;onda, (iat, ;yundai, Dercedes and :koda. D!s are
widening their product portfolio, which will further intensify competition. This also
marks the ne-t phase of the Indian auto industry after the sector was opened up.
ew players, such as :koda and Toyota have lined up the market with 6ctavia ?from
:kodaB and !orolla ?from ToyotaB, ;onda and ;yundai have come a long way
through !ity, @ccord,nata and so on as their pri+ed offerings. 8D= is setting up
an assembly plant in @ndhra Aradesh.
The car sales in 1''2-'> were estimated at over 811,5'' vehicles, a 2>.2M increase
on the preceding year with car sales at over #11,"5' units. The production of
passenger cars in 1''2-'> increased to "81,"#> units reali+ing a growth of >'M over
the preceding year.
#
It is obvious that the market was overwhelmingly skewed in favour of low-end
?pricedB cars. The non-linear segmentation is a reflection of the fewer models in the
ne-t price range.
Individual buyers, mostly small entrepreneurs, have outnumbered companies to form
a significant chunk of the car buying population. Dost of the car buyers come from
backgrounds such as software and service companies. Individual buyers constitute
roughly "'M of the total demand today, overtaking corporate buyers, who
traditionally represented around #'M of total demand some years back. In the case
of cars like ;yundaiKs :antro, as many as $5M of its clientele is represented by
individual buyers.
0eading brands of cars in India now includeO Daruti 8'', /steem, 6mni, Pen, 8aleno,
@lto =agon *, 6pel @stra, 6pel !orsa, Dercede+, !ity, @ccent, :antro, Indica, (iat
Aalio, :ienna, 0ancer, (ord Ikon. 0ately, while ;yundai entered withnata, ;onda
came up with @ccord. (ord has been contemplating bringing in Dondeo, while 4DKs
:wing made some healthy waves in its segment. :koda has introduced its 6ctavia,
and may follow with :uperb to strengthen its presence. *eva /lectric !ar !o
launched the base version of its *eva electric car in 8angalore and 4oa. 0ately,
4D has created ,uite a ripple with its !hevrolet based 6ptra.
/-cept for Daruti 9dyog .I with :u+uki of .apan and ;industan Dotors tie-up with
Ditsubishi also from .apan, all the earlier collaborations have been diluted and
converted into fully-owned subsidiaries of the global players like 4D, (ord, ;yundai,
5aewoo, 5aimler !hrysler. @mong the operational alliances is the one between 5!D
group and ;onda in ;onda :iel Dotors. The new entrantsK forays like :koda are
again entering as wholly-owned subsidiaries.
8ased on the long term optimism, new and established entrants in this sector are
introducing new models. @s the number of players multiply, the Indian consumer will
have a plenty of variety and choice in the mid-si+e and small segment. @lthough
small car category continues to be dominated by Daruti 8'' and @lto, :antro and .
Indica, the segment would offer the consumer the choice of pick and choose.
Daruti 9dyog is in talks with various diesel engine manufacturers to set up a diesel
engine manufacturing base in India. Daruti is e-pected to outsource its entire
re,uirement of diesel engines from the proposed local unit. Aeugeot, which supplies
"
diesel engines to Daruti 9dyog for compact car Pen and mid-si+e sedan, /steem, is
one of the companies with which Daruti is negotiating, another being (iat.
The sudden and simultaneous induction of new cars in the segment e-posed the
Indian market to severe competition, especially to the well entrenched Daruti 8'' and
Pen. ewer technologies have been displayed by these entrants. These are aimed at
improved fuel economies and horse-power and at the same time overcoming
stringent emission norms of =estern /urope. 6ther hi-tech features include multi-
point fuel in3ection ?DA(IB system, collapsible steering, independent suspensions for
the wheels, side impact bars, roof stiffners, child-proof locks, disc type front brakes
and several other features hitherto unknown.
In the changing automobile scenario, the market demand is composed of replacement
demand, new entrants to the market, graduation of two-wheeler owners to the car
market and shift of the small car owners to the medium and premium car segments.
The structure of the market by product variation is also witnessing a total
metamorphosis. The erstwhile models have been of higher engine capacity but are
relatively low priced. Aresently, the bulk of the demand is for engine capacity below
1''' cc. The middle segment, which is more price-oriented, is large in terms of value
but the market in ,uantum is much too small. @s indicated, the mid-priced premium
segment is witnessing a significant upsurge.
MULTI-UTILITY 0EHICLES:-
The D9I segment consists of vehicles that are suited both for urban and rural areas.
In rural areas where the roads are bad, D9Is can be used as goods carriers and for
public transportation. In terms of the overall share of the vehicle market, the
importance of D9Is is still low as 1.1M. Traditionally, more than "'M of the
vehicles sold by Dahindra L Dahindra ?DLDB, the main player in this segment,
went to tour operators and customers who bought it for business purposes. /ven the
balance 2'M picked up are primarily by buyers from small towns and rural areas, who
wanted a vehicle that could carry goods.
;owever, during the past couple of years, there has been a ,ualitative shift in demand
profile of this category. The introduction of the Toyota Gualis changed consumer
perceptions about this category. In urban areas, Gualis has tapped the latent demand
8
for a large family car, thus blurring the distinction between the passenger cars and
D9Is. The changing consumer perception has been further reinforced by instant
success of :corpio launched by DLD.. In a bid to tap this growing market, D90 has
also launched its first D9I, Iersa. =ith other players such as ;industan Dotors and
(ord planning to launch the products in this segment, competition is e-pected to
intensify
D9IKsO Darket :hares
C!"a#y S,are -./
Daruti 9dyog 1M
Telco 11M
;industan Dotors 1M
Toyota 7irloskar 1#M
Dahindra L Dahindra >#M
8a3a3 Tempo >M
urceO www.hyundia.com.
$
E#1$r#!e#%al Iss)es: -
/mission control is important when it comes to tackling pollution levels on city roads.
In the recent past, the issue has become very important for the domestic automobile
industry. Tracing back to where it all started, we find that the first emission norms
were introduced for petrol vehicles in 1$$1 and for diesel vehicles in 1$$1.
(rom @pril 1$$5, fitting catalytic converters was made mandatory in new petrol
driven passenger cars sold in the four metros of 5elhi, !alcutta, Dumbai and
!hennai. (or this to happen, petrol pumps supplying unleaded petrol were opened in
these cities.
1'
1.2 PROFILE OF THE COMPANY
HYUNDAI MOTOR
;ead,uartersO :eoul, *epublic of 7orea ?121, Fang3ae-5ong, :eocho-4uB
Industry :ectorO Danufacturing
Da3or AroductO @utomobiles
AroductionO 1,#"",818 units per year ?!75 /-cludedB
:alesO 1",>"1 billion 7orean =onQ
@ssetsO 1>,"'' billion 7orean =on
et IncomeO 1,8'> billion 7orean =on
!hairman L !/6O Dong-koo !hung
5ate of /stablishmentO 5ec. 1$, 1$#"
* Production: production total from domestic (Ulsan/Asan/Jeonju) and overseas
manufacturing plants
(India/Turke/!"ina) in #$$%
11
* &ales' Assets and (et income: )undai *otor+s Independent ,inancial &tandard for
fiscal ear #$$%
*- U& . / 01$ 2orean 3on4
Hy)#da$ M%r I#d$a L$!$%ed -HMIL/ 3
=holly owned subsidiary of ;yundai Dotor !ompany,uth 7orea
Industry :ectorO Danufacturing
Da3or AroductO @utomobiles
Aroduction !apacityO 18',''' units per annum
Total :alesO 151,851 units in 1''5
5omestic :alesO 1,5#,1$1 units in 1''5
/-port :alesO $#,5#' units in 1''5
et IncomeO >21,181 million 7orean =on ?>1>1>2 thousand 9:JB
!hairman L !/6O Dong-koo !hung
Fear of /stablishmentO 1$$#
* !ompan )istor is given in 56"i7it
?8usiness AurposeB (8efer for detailed *ission in 56"i7it)
*ission of t"e Parent compan 9)undai *otor !ompan9
The relevant business purposes of the !ompany are as followsO
? To manufacture and sell all kinds of vehicles and component parts thereof.
? To manufacture and sell special purpose vehicles and component parts thereof.
? To engage in the e-port and import business.
;yundai Dotor India 0imited ?;DI0B is a wholly owned subsidiary of ;yundai
Dotor !ompany,uth 7orea and is the second largest and the fastest growing car
manufacturer in India. ;DI0 presently markets 2' variants of passenger cars in si-
segments. The :antro in the 8 segment, 4et+ in the 8H segment, the @ccent in the !
11
segment, the /lantra in the 5 segment, thenata /mbera in the / segment and the
Tucson and Terracan in the :9I segment.
/stablished in 1$#", ;yundai Dotor !o. has grown into the ;yundai 7ia @utomotive
4roup which includes over two do+en auto-related subsidiaries and affiliates.
/mploying over 5",''' people worldwide, ;yundai Dotor posted 9:J1#.1 billion in
sales in 1''> ?on a non-consolidated basisB. ;yundai Dotor vehicles are sold in 1$2
countries through some 5''' dealerships and showrooms. ;yundai Dotor !o. is a
sponsor of the 1''# (I(@ 4ermany =orld !up.
;yundai Dotor India has said it will begin production at its second plant in the
country on 6ctober 15, 1''", where it aims to reach a capacity of 2'',''' units
by 1''8.
;yundai India aims to e-port at least 1'',''' cars ne-t year. The carmaker, which
e-ports :antro and @ccent cars made at its factory near !hennai in southern India to
regions such as /urope, e-ported 115,''' cars in 1''# and plans to e-port 25','''
cars in 1''$.
;yundai Dotor India, continuing its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 1$$,512 vehicles in calendar year ?!FB
1''#, an increase of 18.5 percent over !F 1''5. In the domestic market it clocked a
growth of 1$.1 percent a compared to 1''5, with 18#,1"> units, while overseas sales
grew by 1".> percent, with e-ports of 112,22$ units. 0ast year, ;DI0 had clocked in
1>",#2# units from .anuary to .une. !ompared to last year ?C'#B, the sales grew by
$.2M to 1#1,1$# units for the same period ?.an- .une &'"B. 6ut of this 1'',$15 units
are sold in the domestic market while #',2"1 units are e-ported. 0ast year the
domestic market had accounted for $1,1"2 units and the e-ports stood at 5#,2#2 units
The e-port registered a growth of ".1 M to while the domestic market volume has
increased by almost 11M.
!ommenting on the sales this month @rvind :a-ena, IA, Darketing and :ales said RIn
spite of hike in interest rates, ;yundai has still managed to grow in terms of volumes.
=e are sure the ne-t few months will see stronger retail as we overcome our capacity
constraints with the new plant starting operations later this yearS.
The segment-wise cumulative sales in the month of .une 1''" are as followsO @1
:egment T12,558 unitsN @1 :egment U 2,$82 unitsN @2 :egment T 1> unitsN @>
12
:egment T #" unitsN and :9I :egment T 11 units. @t present R;DI0S have 1#" in
.anuary 1''", dealers all over India at present stage
;yundai today en3oys a market share of around 1'M and is looking at the doubling
that figure. 4iven the Indian marketKs response to the :antro, the company seems to
be well on course....
? 8est customer service
? 8est technology
? 8est ,uality products
? 8est value for people.
@ll over R;DI0S launched the second nation wide free car care clinic campaign,
offering our loyal customers free check-ups for keeping their vehicles in best of
condition. ;yundai involved about 21' ;yundai dealers& workshops across the
country.
1>
PRODUCTS PORTFOLIO
15
1#
:egment ame Iariants Arice
8 :antro V7?on-ac,
@!B,V0,@T,V6
1,81,$"2 to 2,$1,$">
8H 4et+ 40/, 4I:, 40:, 40V >,11,''' to 5,18,518
! @ccent 40/, 40/ 1.#0, Iiva,
Iiva !*5i, !*5i
5,1$,''' to ",1>,"1>
5 /lantra 4T, 40:, !*5i 8,52,"$2
to 1',52,8''
/nata 1.> D%T, 1.> @%T?both are
in fabric% leatherB
1,2#$,''' to
1,>5$,'''
:9I Terracan 40 1,'5$,151
Tucson Tucson 1>,#1,$$$
Sa#%r:-
Dodeled on the Hy)#da$ A%s, the Mer+edes A145 and S)6)7$8s Wa'# R,
and then customi+ed to Indian tastes, the :antro takes the best of all the cars
vi+. the driveability of the @tos, the safety L design of the Dercedes @1>',
and roominess of the =agon *.
It claimed to be the leader of its segment since its launch till mid 1''>. 8ut in
(ebruary 1''5, =agon*Ks sales were higher than the :antroKs and in Darch the
@lto stole, too, the :antroKs thunder. The fight for market share goes on with
the launch of new variants and models in the 8 segment. 8ut on an average,
:antro stands to be the market leader.
It is a mid-si+e segment car and the pricing strategy varies over the variants
being offered. The V7 ?non- acB starts at 1.81 lakhs and the costliest variant is
around 2.$1 lakhs. It competes with Daruti&s Pen and @lto, Tata&s Indica and
(iat&s Aalio.
1"
9e%6:-
In response to consumers& demand for something bigger than 8 segment cars,
yet smaller than those in the ! segment, car manufacturers lined up a new
range of variants. This segment is the 8H segment.
The 4et+ is one of the most well designed and graceful looking cars from the
7orean !haebol, especially since the company has tended to conceive cars
that have a Wstreak of ,ueer beautyW about them.
Its chief competitors are (ord (usion and !hevrolet
ark. 8esides these two
models, (iat&s Aalio and Aetra, 6pel&s :ail L !orsa, Tata&s Indigo and (ord&s
Ikon (lair also face competition from 4et+.
@s every model of ;yundai, 4et+ is also priced premium but at a killer price
amongst its strategic group. Its variants cost from >.1 lakhs to 5.1 lakhs.
A++e#%:-
In the mid-si+e segment, the @ccent leads with a market share of 1" per cent,
pitted against the likes of Ikon, ;onda !ity, !orsa, /steem and the 0ancer.
@ccent 40: has been positioned as the car that provides power and
performance, while @ccent !*5i targets those consumers who are conscious
about the cost per kilometer. The !*5i variant has proven to be a deadly
weapon in performance and against competition.
The competitors are (ord&s Ikon, ;onda&s ;onda !ity, Daruti&s /steem,
6pel&s !orsa, Ditsubishi 0ancer and their variants. @ccent stood out as the
market leader in its segment most of the time. The pricing has been hiked at
times owing to the rising costs and yet the price varies over 5.1$ to ".1 lakhs.
Ela#%ra:-
@ggression is writ clearly across the /lantraKs face. This is typically the kind
of design that the young car buyer will identify with. If the ;yundai /lantraKs
18
design does not appeal to the stiff upper-lip gentleman, the features-to-value
e,uation surely will.
;yundai has packed the /lantra with electronic gadgetry and loads of active
and passive safety features that the competition has not thought of offering in
their cars. The cars that are competition for the /lantra like the Toyota !orolla,
the :koda 6ctavia,, !hevrolet 6ptra and the Ditsubishi 0ancer.
Aositioning and pricing have been the key factors for the success of ;yundaiKs
products. In the case of the /lantra, too, ;yundai has positioned it s,uarely in
the cusp between the ! and 5 segments. Aricing wise it is in the higher end of
the ! segment, at the same time it is as feature rich as the average 5 segment
sedan.
Ariced at *s 8.5 lakh for the lower trim 4T variant and going up to *s 1'.5
lakh for the !*5i variant, the /lantra is good value for money. The
competition will have a tough time beating this combination of features at this
price.
S#a%a:-
The countryKs lu-ury car market constitutes one per cent of the total passenger
car and D9I market. The section of the population it targets is hence
e-tremely limited. ;yundai offers nata as a brand by associating the car
with royalty and high-class society. It offers all the features a lu-ury car can
demand and also establishes itself with a killer low price and decent looks
along with large periods of warranty.
Its chief competitors are (ord Dondeo, Toyota !amry, ;onda @ccord, :koda
6ctavia, 8en+ c class, Toyota !orolla, 6pel Iectra. The variants ofnata
have been placed in the range of 12.5$ to 1>.#$ lakhs. The huge advantage of
the pricing strategy ;yundai employed is in terms of the warranty period and
thus the car has been targeted to cut through profits of the other models in this
segment.
1$
Terra+a#:-
;yundai&s most powerful :9I, The Terracan pro3ects a strong masculine
identity that evokes ;yundai&s strategic goal to challenge other entrants in the
medium-heavy >=5 market with a vehicle that weds performance with
comfort, refinement and fresh styling. Terracan&s on-road ride comfort,
refinement and ease of driving have been honed as ma3or Terracan strengths.
The overall look of the :9I is one of a simple, elegantly straight-edged body,
personali+ed by several highly styled elements.
The chief competitors for it are Ditsubishi&s Aa3ero, ;onda&s !*I, 4rand
Iitara, !hevrolet (orrester, (ord&s /ndeavor. Its 40 variant costs around 1'.5
lakhs.
The pricing strategy targets a premium customer who values style and sports
utility as a lifestyle statement. Though an element of value for money e-ists,
style and aggression drive the flow. The car will be positioned as a value
product targeted at the young, demanding male.
T)+s#:-
=e have had many good :9I&s, but all of them have been petrol-drivenN a
diesel-engine, Xright-si+eK lu-ury :9I was not available. This led to the
genesis of Tucson. The Tucson boasts of a sedan-like monoco,ue construction.
It holds features fit for a :9I ride and a better performance with respect to
diesel variants in general.
The macho machine comes with a long warranty period. ;yundai made an
effort to provide a lot of premium features without bursting a buyerKs budget. It
costs around 15 lakhs but though a value for money proposition has been
offered, the model fails to cater true lu-ury car features. ;ence the pricing
seems to be of concern.
1'
Ser1$+es O**ered:-
? @uthori+ed :ervice centres.
? /mergency *oad :ervice.
The company&s greater focus on the ,uality of its after-sales service made ;yundai
provide these services, with servicing available at their own authori+ed centers and
other service points. ;yundai reflects its image of value for money in the service it
offers. In order to deliver the highest value through their products they have set up
more than "' dealer workshops e,uipped with latest technology machinery and
international ,uality press, body and paint shops, across the country.
There are three company-owned outlets called K;yundai Dotor Ala+aK that will serve
as model dealer showrooms and service workshops for the customer. !ustomer !are
!entres which have specially e,uipped :antros that can provide emergency service to
all our customers anytime, anywhere have been provided.
11
DISTRIBUTION STRUCTURE FOR HYUNDAI MOTORS
11
(actory%Alant
!L(@ !L(@
5ealers
5ealers
5ealers
5ealers
5ealers
5ealers
SALES STRUCTURE
12
D5
Aresident
/-ecutive 5irector
?Darketing L
:alesB
4D
?:alesB
*egional
Danager
*egional
Danager
*egional
Danager
*egional
Danager
:ales
Danage
r
:ales
/-ecutives
?dealersB
:ales
Danage
r
:ales
/-ecutives
?5ealersB
:ales
Danage
r
:ales
/-ecutives
?5ealersB
:ales
Danage
r
:ales
/-ecutives
?5ealersB
Tar'e% Mar7e% S%r)+%)re:-
Mar7e% Se'!e#%a%$# &y Ca%e'ry
Aremium and 0u-ury '.5M
/-ecutive :egment 1."M
Did-si+e 15.$M
D9Is 1.1M
:i+e and compact "$."M
Mar7e% Se'!e#%a%$# &y 9e'ra",y
Se'!e#% S,are-./
orth >2
/ast 8
=est 1#
uth 12
Mar7e% Se'!e#%a%$# &y Pr$+e * Car
6ver *s 1.' mn '.8
*s 5'1,''' to *s 1.' mn 2.1
*s 2'1,''' to *s 5'',''' >$
9nder *s 2'',''' >"
This table illustrates the geographical and price wise segmentation of the passenger
cars market and the percentage share they account to. Aassenger cars are mostly aimed
at urban areas, though a shift to focus on the semi-urban and rural areas is becoming
evident. D9I&s stand to cater to the need of semi-urban areas more precisely owing
to the space and performance features D9I&s offer.
1>
In general, car has always been a status symbol and a convenient L safe
transport utility. Thus the passenger cars are targeted towards income groups which
can afford and mindsets which demand a statement of style. ;DI0 is targeting
customers in the 15-5' age groups. ;yundai has leveraged on this by providing value
for money products with compact, stylish designs.
C)s%!er Pr*$le : C!"e%$%rs:-
Na!e Tar'e% C)s%!er Pr*$le C!"e%$%rs
:antro
?8B
8udget constrained L budget conscious
buyerN parking space consciousN
a small familyN middle income groups.
Daruti Pen, @lto, Tata Indica
and (iat Aalio.
4et+
?8HB
8uyers who needs more Aower, an
affordable price, medium si+e and
trendy lookN buyers looking for a good
value for money proposition.
(or those who lead their own life and
create their own benchmarks.
(iat Aalio and Aetra, 6pel :ail
L !orsa, Tata Indigo and (ord
Ikon (lair
@ccent
?!B
5emands power and performanceN is
conscious about the cost per kilometer.
*e,uires a medium si+e at reasonable
prices with a blend of fuel efficiency,
power and stylish look.
(ord Ikon, ;onda ;onda !ity,
Daruti /steem, 6pel !orsa,
Ditsubishi 0ancer
/lantra
?5B
;igh income groups who value
performance and command a lu-urious
style of living.
Toyota !orolla, :koda
6ctavia, !hevrolet 6ptra and
Ditsubishi 0ancer.
nata
?/B
;igh income and elegant class.
5emand a status symbol of lu-ury
which conveys the stylish living the
owners lead.
(ord Dondeo, Toyota !amry,
;onda @ccord, :koda 6ctavia,
8en+ ! class, Toyota !orolla,
6pel Iectra
Terracan a premium customer who values style Ditsubishi Aa3ero, ;onda
15
?:9IB and sports utility as a lifestyle
statement. young, demanding maleN
high income group.
!*I, 4rand Iitara, (ord
/ndeavour, !hevrolet
(orrester
Tucson
?:9IB
@ merge of lu-ury, comfort, compact
proportions and fuel efficiency of
sedans with the handling, build and feel
of a sport utility vehicle ?:9IB targets
at a customer who demands such a
crossover with a good amount of inner
space
D$s%r$&)%$#:-
;DI0 has > regional offices in India, at 5elhi, Dumbai, !hennai and 7olkata.
;DI0&s fully integrated state-of-the-art manufacturing plant is located near !hennai
which boasts some of the most advanced production, ,uality and testing capabilities
in the country.
In continuation of its investment in providing the Indian customer global technology,
;DI0 has announced plans for its second plant. ;yundai Dotor India 0td ?;DI0B
has now planned to increase its production to #'',''' units per year by 1''" from
>'',''' units as planned earlier. The announcement was made on (eb1',1''# by
;yundai Dotor !ompany&s ?;D!B !hairman Dr. !hung Dong-7oo during his visit
to India.
The e-isting plant capacity is 18',''' units per annum which will be increased to
2'',''' units. The second plant will add another 2'',''' units, which is under
construction and e-pected to be completed by 1''". The plant will be built on a 1.1
million s,uare meter site ad3acent to the e-isting facility with an investment of J>5'-
J5'' million on its new integrated facility. ;DI0 plans to e-pand its dealer network,
which will be increased from 15" to 1'' in 1''#.@nd ;DI0&s service network will be
e-panded to over 1,''' in 1''#.
The details of the locations of the - *egional offices
1#
? 5ealers
? @uthori+ed :ervice !entres
? ;:!A ?;yundai :ervice !enter pointB are in the e-hibits.
1"
1.; COMPETITION ANALYSIS
C!"ar$s# # %,e !ar7e% s,are< e="r%-"rs"e+%s * I#d$a# A)%!&$le
Se+%r:-
Aassengers
Iehicles ?AI:B
(rom @pril-
ovember
'5-'#
(rom @pril-
ovember
'#-'"
Total
Darket
:hare ?in
MB
The et
!hange
between the
period
?in MB
Total
number of
e-ports in
@pril '#-'"
Daruti 9dyog 1,#$2#' 1,$1,181 51.1 8.1 12,'>2
;yundai Dotors
India 0td.
8$,'"5 1,'", '## 1$.1 1'.1 #8,2">
Tata Dotors $5,>'1 1>,2>8 1#.# -1." 11,1'5
;onda :iel !ars
India 0td.
12,18# 1>,2>8 >.> 5.1 21
(ord India Avt. 0td 15,'1# 1',511 1.$ -2'M $,$18
Mar)%$ )dy'
(rom its inception Daruti has been in only in one line of business, car manufacturing.
The company manufactures passenger cars at its factory in 4urgaon, ;aryana. Daruti
en3oyed a dream run in the pre liberali+ation era en3oying a market share of over 8'M.
8ut with increased competition in the car market its market share has currently
dropped below #'M. Its first product, Daruti 8'' was launched in 1$82. The car was
launched as a Wpeople&s carW with a price tag of *s>', '''. This changed the industryKs
profile dramatically. Daruti 8'' was well accepted by middle income families in the
country and its sales increased from 1,1'' units in (F8> to more than 1'',''' units
in (F$$. ;owever in (F1''', this figure came down to 18$,18> units, due to rising
competition from ;yundaiKs K:antroK, TelcoKs Indica and 5aewooKs KDati+K. In 1$85, the
all-terrain vehicle 4ypsy was launched. The Daruti 1''' was launched in 1$$' and
the Pen in 1$$2. To counter increasing competition the company has launched a series
18
of new models and plans to launch one new model every year. The present models
include the 8''cc small car, 6mni, /steem, Pen, @lto, =agon U*, 4ypsy, 8aleno and
Iersa
H#da
;onda :iel !ars India 0td., ?;:!IB was incorporated in 5ecember 1$$5 as a 3oint
venture between ;onda Dotor !o. 0td., .apan and :iel 0imited to manufacture
;65@ passenger cars in India. The company is I:6 $''1 L I:6 1>''1 certified.
The plant was set up in 1$$" with an investment of *s. >5' crores ?paid up capital *s.
2#' croreB and in 1''5 the investment stood at *s. 8'' crores. Their product range in
India includes the ;onda !ity PV, @ccord and !*-I. !ity PV is today recogni+ed as
one of the most successful car brands in the country. It is strongly associated with
durability, reliability, ,uality and fuel-efficiency. !ity PV, the latest version of the
!ity, including the IT/! version, was introduced on 6ctober 5, offering enhanced
power and style.
In addition to the !ity PV, @ccord and !*-I models made them a premium segment
leader in the Indian passenger car industry.
;onda is operating only in segment 5 cars i.e. the premium segment.
Ta%a M%rs
Tata Dotors 0imited is IndiaKs largest automobile company, with revenues of *s.
1>,''' crores ?9:5 5.5 billionB in 1''5-'#. It is the leader by far in commercial
vehicles in each segment, and the second largest in the passenger vehicles market with
winning products in the compact, midsi+e car and utility vehicle segments. The
company is the worldKs fifth largest medium and heavy commercial vehicle
manufacturer. Training to the employees is provided by the vendors only. :howrooms
on their part are providing incentives to the car sales e-ecutive for promoting
accessory. They also deal in only genuine accessory approved by Tata. They provide
door-step facility to the customer when it is re,uired.
Ty%a
1$
Toyota 4enuine @ccessories are manufactured to the e-act specifications of each
individual Toyota model. This means they fit precisely and conform to every contour
of the vehicle. Toyota 4enuine @ccessories are designed, tested and manufactured to
strict Toyota global standards. This ,uality and reliability is supported with up to a 2
year, 1'','''km warranty.
LATEST E0ENTS DONE BY HMIL
? Hy)#da$ M%r % Rll )% CN9 Sa#%r
;yundai Dotor India ?;DI0B plans to introduce a factory-fitted !4 kit version
of its popular passenger car :antro with the option of petrol as a second fuel.
;yundai will roll out the !4 version of the :antro from itKs e-isting plant in
!hennai by the end of 1''" or early 1''8.
? Hy)#da$ M%r C % !a7e ;55<555 ,y&r$d +ars a year-
!armaker ;yundai Dotor !o plans to make 2'',''' gasoline-electric or diesel-
electric powered vehicles by 1'15 as demand for more fuel-efficient cars is rising.
? Hy)#da$ sales )" 14.1 "er +e#% $# Se"%-
;yundai Dotor India achieved a growth of 1>.1 per cent in the domestic market in
:eptember 1''#, selling 1#,>15 vehicles during the month. ;yundaiKs cumulative
sales during the month were 1#,>$1 units a growth of 11.5 per cent, over
:eptember K'5.
6verseas sales in :eptember stood at 1','"" units, a growth of ".5 per cent over
the same month in the previous year. ;yundai Ierna, launched in the last week of
:eptember 1''#, has sold 1,'>2 units in the first five days. The segment-wise
cumulative sales in :eptember 1''# areO @1 segmentO 11,>'$ units, @2 segmentO
2,88" units, @> segmentO 1>" units, @5 segmentO 11 units, :9I segmentO 1" units.
? Hy)#da$ M%r &e%%ers $%s &ra#d 1al)e
;yundai Dotor !ompany has reported a 1"-per cent appreciation in its brand
value, emerging "5th in the latest survey of worldKs leading brands, 3ointly
conducted by branding consultancy firm Interbrand and the :usiness 3eek
maga+ine.
2'
The 7orean automaker ;yundai Dotor raked 8>th in its debut appearance on the
8est 4lobal 8rands list last year.
The 1"-per cent appreciation in brand value of ;yundai makes it the fastest
growing automotive brand and places it among the top five biggest gainers in
brand value. ;yundai, with an estimated brand value of J>.1 billion, has also way
ahead of its competitors. ;yundai has been making continuous improvements in
the ,uality of its vehicles, which in turn has fueled a steady increase in sales and
customer confidence in the brand. In fact, ;yundaiKs sales have been built on a
balanced management of its brand value and marketing. The group sold 2."
million vehicles in 1''5 and ranked the si-th largest automotive manufacturer in
the world. ;yundai includes over two do+en auto-related subsidiaries and
affiliates. ;yundai Dotor, which employs over #8,''' people worldwide, posted
J1".28 billion sales in 1''5. Its vehicles are sold in 1$2 countries through some
5,''' dealerships and showrooms.
? Hy)#da$ ra!"$#' )" $%s dealers,$" #e%>r7
=ith ;yundai Dotor India 0td. e-pecting its second plant e-pected to go into
operation soonN the company is now looking to speedily ramp up its dealer
network to push sales for the increased production.
;DI0 reportedly had 1#" dealers in .anuary 1''", and plans to e-pand its
network to 15' by 5ecember.
ew dealerships are likely to follow the proven format, with sales, services and
spares facilities housed together.
The company has been witnessing rather flat sales over the past few months,
though it has a healthy stable of cars, which include the 4et+, the :antro, and the
Ierna. The lacklustre sales are reportedly attributed by the company to production
capacity constraints, as a result of which domestic sales suffered, and even e-port
orders saw some backlogs.
? Hy)#da$ O+%&er sales )" ?1 "er +e#%
21
;yundai Dotor India 0td ?;DI0B announced yesterday that the companyKs sales
grew by "1 per cent at 11,"'> units. The company sold 1$,''" units in the
compact car segment, 2,5'2 units in mid-si+e car category, 151 units in the
premium mid-si+e car segment and 12 units in the lu-ury car segment, a company
statement said. ;DI0, Indian arm of the 7orean automaker, sold 1$ units of
sports utility vehicle KTerracanK.
? Hy)#da$ %ar'e%s e="r% ear#$#'s * Rs.2< ?55 +rre *r %,e *$s+al
;yundai Dotor India 0td e-pects to e-port $5,''' cars in the year against "','''
last years, according to company officials. =ith about *s1, 215 crore in e-port
earnings in the first si- months of this year, the company is confident of ending
the year with an e-port income of *s1, "'' crore, up from *s1, "'' crore last
year. 6f the 1,25,1#5 cars e-ported from India in 1''>, ;yundai Dotor India
accounted for 85,''', he said and added that a ma3ority of the companyKs e-ports
were going to Wthe most discerning marketsW of /urope and 0atin @merica,
including the afta ?orth @merican (ree Trade @greementB area of De-ico. This
was the best possible comment on the manufacturing standards of the company
and its vendors, he asserted.
21
LITERATURE RE0IEW : PROBLEM FORMULATION
The conceptual discussion brings into front the factors on which early adopter and late
adopters differ.me these factors are awareness, media habits, loyalty, age , income,
education, occupational status, risk, variety seeking, and attitude towards change.
!huan-(ong shih L @lladi Ienkatesh his research shows the importance of 5iffusion
of Innovation. They suggested the e-tended model of 5iffusion of Innovation. The
research shows that though diffusion process cannot be understood without studying
the nature of adoption, to complete the diffusion study use-diffusion process also
needs to be e-amined. This research was based on two criteria rate of use and variety
of use. They came out with four typologyO intense, speciali+ed, non speciali+ed and
limited.
@nother research carried out to find the factor, which affects the adoption of Internet
banking. The result of the research shows that internet accessibility, awareness,
attitude towards change, computer and internet access costs, trust in one&s bank,
security concerns, ease of use and convenience are the ma3or factors affecting the
adoption of internet bank services in Dalaysia. The demographic difference between
Internet bank users and the non-users were not very evident in the study, particularly
with reference to age and educational background.
!hristophe Ian den 8ulte did research on The 8ass 5iffusion Dodel is not a Di-ture
of Innovators and Imitators. This paper has shown that the 8ass model is all too often
misinterpreted as representing the diffusion of innovations between two different
types of actors, innovators and imitators. 8ass ?1$#$B assumed that innovation
acceptance is driven in part by social contagion, and that Rthe probability that an
initial purchase will be made at Ytime tZ given that no purchase has yet been made is a
linear function of the number of previous buyersS
C!"a#y@s 0$s$#A-
;DI0&s vision for the future is to beO
;T"e <eader in t"e Indian Automo7ile Industr'
!reating !ustomer delig"t and &"are"olders =ealt">
A pride of India?4
22
Cre 0al)esA-
The (ive Ialues identified are as followsO
? !ustomer 6bsession
? (ast, (le-ible and (irst mover
? Innovation and !reativity
? etworking and Aartnership
? 6penness and 0earning
MARBETIN9 STRATE9Y OF HYUNDAI
In this section we identify the general marketing strategy under which this plan is
being developed. It is very possible that a product will follow more than one strategy,
and it is not in the focus of this study or plan to cover the strategies other products
would sail upon e-cept for the action plan we suggest. It can make the picture clear if
we take note of the following issuesO
The mission statement says,
? To manufacture and sell special purpose vehicles and component parts
thereof.
? To manufacture and sell all kind of vehicels and components parts
thereof.
The vision of the organi+ation is
? To rank among the world&s top five automakers.
The ob3ectives of the organi+ation speak of
? To increase the share in Indian Aassenger !ars? includes :9I&s and
D9IsB Darket
? To e-pand its e-port volumes to @merica, /urope and Diddle /ast.
me (actsO
2>
? The Indian Aassenger car industry ?e-cluding D9IsB is growing at 12.>M
?!@4*B and the D9I market is growing at 12."M ?There e-ists certain
element of doubt on the pro3ected !@4*, due to dependence of D9I
market on certain other factors. !@4* calculated over 1' years data for
passenger cars and for > years on D9Is. (or clear understanding look in
/-hibit B.
? The cars industry accounts for 5'M of automotive sector globally, whereas
it accounts to 15M in India. Indian !ar market is the second largest in
terms of growth, after !hina.
? ;DI0 has now planned to increase its production to #'',''' units per year
by 1''".
A*6A6:/5 @!TI6 A0@O 0@9!; @ D65/0 T6 !@T/* T6 T;/ D9I
:/4D/T.
The elements of Darketing :trategy areO
Prd)+%C Mar7e% Sele+%$#:-
;DI0 needs to cater to its e-isting markets from its present product lines. 8ut
;DI0 needs to focus on the segment of D9I market. Though launching a D9I
definitely needs certain competencies, they are not much different from what ;DI0
has and its parent company already serves to this segment, which makes it far more
easier. 8y launching a D9I, ;DI0 would serve to the rural, semi-urban and urban
markets and spread its network more into the roots of Indian market. This is purely a
Darket 5evelopment :trategy as the product already e-ists ?;yundai is being
produced in 7orean domestic market alreadyB, but now it is being offered to the
Indian market. =e would discuss the benefits we can associate and the design
specifications of this product in the ne-t section.
Pr$+$#':-
;yundai has always been considered to be a ,uality product provider and is mainly
associated with Ialue for Doney, premium features at lower prices, stylish L trendy
25
designs and superior ,uality. ;yundai has to be priced taking into consideration the
perception customers have about ;yundai.
:T*@T/4FO Ialue Aricing retaining the ,ualities of being Aremium 8rand.
6b3ectiveO To offer high ,uality product at a competitive priceN to enable a budget
conscious buyer purchase the productN to enable many people to buy a new car with
modern levels of safety and environmental protectionN to win loyal customers and
retain the e-isting customers.
;T"e polic is to "old t"e price@line at constant levels sans passing on t"e inflation
effect to t"e customers4?
D$s%r$&)%$#: -
;DI0 is planning to e-pand its dealer network from the present 15" to 1'' this year
to reach out to semi-urban and rural areas and to increase its market share from the
present 1' per cent. the ob3ective would be to reach the lucrative regions which
can create huge number of sales. To begin with launching ;yundai in the following
states Aun3ab, ;aryana, 9ttar Aradesh, Daharashtra, 7erala and @ndhra Aradesh,
where there is a si+eable affluent rural population seems to be a good idea to start on
with. @nd also as ;yundai would be targeted at being a large family car% van, we can
head on with launching it at selected urban cities in other regions and the ma3or cities
of India.
C!!)#$+a%$#:-
Aositioning campaignO ;yundai needs to be positioned as a large spaced, power
vehicleN as a cargo van which can be used both for (amily use and transportation. It
stands to be important to win the customers& hearts by adding the emotional touch of
being a large family&s car and a very good DAI.
Ad1er%$s$#':-
Are-launch campaign, TI campaigns, print ads, e-resources and certain areas of
wireless% mobile advertising.
Pr!%$#:-
Test rides, (inance schemes, @fter sales service discounts.
2#
PROBLEMS FORMULATION
? The company plans its raw material re,uirement from the sales pro3ection, which
was done by the marketing department of the company. @t the end of every month,
marketing department creates its budgeted sales for the e-isting product and new
products. Darketing department creates its budgeted sales by considering demand of
the product, actual sales in the previous month and the sales in the current month of
the previous year.
? Aroduction, Alanning and Daterial !ontrol 5epartment ?AAD!B is based on the
sales pro3ection and calculates the re,uirement of the raw material for each
department for each product. AAD! department authenticates raw material issued.
? @fter the AAD! 5epartment calculates the re,uirement of the raw materials, the
purchasing department places an order to the vendor or supplier for each
department. Then the supplier dispatches the material in the factory premises.
? ow the raw material proceeds through the testing process. ;ere it is checked
whether the raw material is as per the standard ,uality prescribed by company at the
time of placing an order. @t the time of testing they also allocate specific
identification number to each material so that it can be referred at the time of
production, if any defect occurs. Then raw materials are issued to the production
department.
? !ompany is following batch production process. They assign the batch number and
lot number so that if any problem occurs while it is consumed they can detect the
fault.
2"
OBDECTI0E AND METHODOLO9Y
;.1 OBDECTI0E OF THE STUDY
? The basic idea of thesis is to gather more knowledge about automobile
industry of India IndiaKs entire industry -- local producers and
transplants -- collectively manufacture about 1.> million vehicles a
year.
? The main ob3ective is to find out marketing strategy of R;DI0S where
we found different attribute of marketing strategies such as, road
demonstration, brand loyalty, market segmentation, brand upgardation
of different products of company which increase the market share of
the company in particular field.
? There is very much needed for the automobile sector because it is very
much need to tell about company profile, its products, there marketing
strategy to upgrade there brand loyalty in the automobile sector which
increase there market share. ;yundai motors is making the tradition of
making passenger car fastest growing car after Daruti :u+uki. ;yundai
motors has recorded sale of 1$$,512 vehicles in the calender year ?cyB
1''#, an increase of 18.5 percent over cy 1''5.
? :ample- during the thesis period we have gone through nearly recorded
1'' of customers where all of them are satisfied with ;yundai
performance buying of b and c segment of cars.
SI9NIFICANCE OF THE STUDY
28
? (or any business venture, marketing and sales go hand in hand.
6pportunities come and go but business comes from the ones, which
are handled properly in terms of leads.
? 0eads for any new opportunity are very important for it to turn out a
profitable venture.
? Darketing and sales work hand in hand for leads.
? Aromotion plays a very important role in both the departments.
Aromotion helps us to market a product properly and also helps in
increasing the sale of the product as compared to competitors.
MANA9ERIAL USEFULNESS OF THE STUDY
? ;elps to have sale e-perience
? ;elps to deal with different customers
? ;elps to overcome the ob3ections of the customers
? ;elps to understand the problems of agents in a broader prospect
? It provides a platform where managerial role can be played effectively
and efficiently.
SCOPE OF THE STUDY
? 5eep insights would give me the clear knowledge of strategies adopted
and which would make me a better marketing professional.
? Important from a consultant prospective finding loopholes in marketing
strategy of the company if any.
? !ontribution to the institute and my fellow colleagues and a uni,ue piece
of work.
? The basic thing which is needed for thesis of ;yundai motors is to increase
market share, increase brand loyalty by providingO
1. Ialue for money car
1. To implement best technology
2$
2. To provide better customer service
>. to make ,uality products.
>'
;.2 METHODOLO9Y
The study conducted to achieve the aforesaid ob3ectives will be both e-ploratory and
conclusive research in nature. It also involves personal interviews based on the
,uestionnaire format.
DATA COLLECTION METHODS:-
? Arimary source
? :econdary source
Pr$!ary s)r+es:-
The data re,uired for the study is based onO
1. Aersonal interviews based on pre-decided format of structured undisguised
,uestionnaire.
1. Aersonal interview with the !ompany representatives regarding the various
data.
2. Aersonal interview with the !ompetitors !ompany&s representatives regarding
the various data.
Se+#dary s)r+es:-
The secondary data consists of information collected fromO
? =ebsites
? Aublished data on @9T6/VA6
? Aersonal Interviews
DATA ANALYSIS TOOLS:-
? 9se of scales and graphs for analysis.
E)es%$##a$re des$'# *r!)la%$#:-
? =e asked ,uestions to different ;yundai customers and potential buyers as
well. =e 3ust wanted to geather information about what they feel to be a
;yundai car owner and how much satisfied are they with their cars
performence and after sales services.
>1
? =e asked both open and close ended ,uestions to the customers. =e asked
,uestion from different segment car owners. 6ur sampling si+e was about 1''
peoples which include present owners of ;yundai car and potential buyer.
S)r1ey Area: -=e collected all information from various ;yundai showrooms and
service centers ?5/0;I 60FB
T$!e *ra!e O- # weeks
Resear+, des$'#:-
=e have used following research design in making our pro3ectO-
/VA06*@T6*F */:/@*!; 5/:I4
It seeks to discover new relationships between several facts..It discovers ideas and
insight.The ma3or purpose of the e-ploratory research design is to do the clear
identification of the problems.8igger problems are broken in smaller
segments./-ploratory study is the initial stage of marketing research as it is in a
developing stage./-ploratory research helps in understanding e-planations of various
problems of marketing mi-.The e-ploratory study may be used to clarify concepts and
causes of problems It is also useful to test the aplicapility of new policies.It is
dynamic and changes with new ideas and concepts.
!6!09:II/ */:/@*!; 5/:I4
It is of two typesO-
? 5escriptive research
? /-perimental design
It helps the marketing e-ecutive to arrive at a suitable decision from the
various alternative decisions. The various alternative conclusions and selecting the
most suitable conclusion may be done by it&s one of the forms, 5escriptive research
design. In this research design ,only a partial situation is clarified but in case of
e-perimental research design a alternative is selected. Therfore, the e-perimental
research design is considered an important conclusive research design.
>1
DATA ANALYSIS
1. EUALITY ASSURANCEA-
4*@A; >.1
ANALYSIS:-
!ustomers analysis report tells that about 5'M says that ;F95@I driving is good
because of machinery used in the car components. but reaming people says that they
don&t find comfortable with ;F95@I while driving.
>2
2. INCOME 9ROUP OF PEOPLE WHO BUYS HYUNDAI:-
4*@A; >.1
ANALYSIS:-
The above chart shows that more than 5'M of income group of 15,'''-2','''
prefer ;F95@I car to be there first car in the family. =hich proves their brand
loyalty and product differentiation from the other cars.
>>
;. PRICE RAN9E:-
4*@A; >.2
ANALYSIS:-
Da3ority of the people are satisfied with price range of ;F95@I where they cant
afford the car they finance the car.
>5
4. HYUNDAI AS PERSONALITY CAR:-
70%
30%
YES
NO
4*@A; >.>
ANALYSIS:
=hile buying ;F95@I car more than 5'M of people think that it suits to there
personality which upgrade there social symbol in the society especially in women.
>#
F. COLOUR CHOICE:-
4*@A; >.5
ANALYSIS:-
Dainly people make choice for colours which suits their personality
>"
G. DEALERS PRICE :-
4*@A; >.#
ANALYSIS:-
=hile purchasing most of the people think that yes their cars match with their
personality while other who did&t agreed ,ma3ority were because of price range.
>8
?. DEALER ATTENDIN9 PROPERLY:-
4*@A; >."
ANALYSIS:--
It is said by the customers that more than 5'M of dealers are attaining customers
properly and remaining of them have mi-ed thought for dealers attending them. many
of the customers are happy with dealers attending to them.
>$
H. HYUNDAI@S COMPARISON WITH OTHER CARS:-
4*@A; >.8
ANALYSIS:-
@bout 2'M of people says that ;F95@I cars the e-cellent car. If so it is better for
;F95@I to capture the big margin of market share in India, which shows the
compatibility of ;F95@I as comparison to other cars.
5'
I. FAMILY PREFRENCE:-
J
4*@A; >.$
ANALYSIS:-
It has seen that most of the Indian family prefer :antro car from the products of
;F95@I which shows the :antro&s demand and it strengthen it&s market share.
51
15. MILEA9E:-
4*@A; >.1'
ANALYSIS:-
The analysis shows that ;F95@I&: mileage is much better than any other car. this
is mainly because they run very much fuel saving not in highways but also in cities,
which how its better machinery used in car.
51
11. MARBETIN9 STRATE9Y OF HYUNDAI:-
4*@A; >.11
ANALYSIS:-
The marketing strategy of ;DI0 upgarde the brand loyalty of :antro in b segment
where the process of strategy consist of market share, brand promotion among the
people through road demonstration, auto Ue-pos and showroom.
52
12. HYUNDAI AMON9 FAMILY PEOPLE:-
70%
30%
YES
NO
4*@A; >.11
ANALYSIS:-
The ;F95@I is very much popular car among the Indian families, because of its
features, looks, price range, product ,uality and after sales service which proves there
brand loyalty among the potential customers.
5>
1;. HYUNDAI@S STREEIN9:-
31%
24%
21%
14%
10%
EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR
4*@A; >.12
ANALYSIS:-
@fter driving ;F95@I most of 5'M customers find that ;F95@I steering is
very much comfortable while driving easy to move at 2#' angle with power futures
in that. again it proves ;F95@I as the right choice among the customers in the
country.
55
FINDIN9S AND RECOMMENDATIONS
FINDIN9S
? India has been the scene of some of the most frenetic deal- making, big
e-pansion announcements, and new car launches in the global auto
industry
? IndiaKs entire industry -- local producers and transplants -- collectively
manufacture about 1.> million vehicles a year
? !onsider that in the last 18 months alone 4eneral Dotors, (iat, ;onda,
issan, and ;yundai have announced Indian investments valued at
roughly J1.5 billion.
? ;yundai Dotor India, continuing its tradition of being the fastest growing
passenger car manufacturer, registered total sales of 1$$,512 vehicles in
calendar year ?!FB 1''#, an increase of 18.5 percent over !F 1''5. .
? In the domestic market it clocked a growth of 1$.1 percent a compared to
1''5, with 18#,1"> units, while overseas sales grew by 1".> percent, with
e-ports of 112,22$ units. 0ast year, ;DI0 had clocked in 1>",#2# units
from .anuary to .une.
? the ob3ective of the thesis of increasing the market share and studying
various criteria important to customers has been fulfilled from the primary
and secondary data collected from various sources ;yundai motors can
improve market share, by increasing brand loyalty, giving more ads and
promotions, increasing *L5 etc
5#
RECOMMENDATIONS
It is essential for every company to make their image perfect and desire to achieve
customer satisfaction by selling products. i suggest the following recommendationsO
? ;ynduai motors should take appropriate measures for promotional offers
through road shows, auto e-pos and promotion through dealers so that
there product should reach customers and increase brand loyalty.
? :econdly they should increase brand loyalty among potential customers
? They should increase printUads, T.I promotions like commercial
advertisement and through game shows etc
? Dany of the families always look for the price range, which ;yundai
motors has to improve to attract more customers and retain the potential
customers.
? @lso the mileage of ;yundai cars should be improved not only at
highways but also at cities.
? @lso ;yundai motors must attract family more so that it can increase sale
and profit margin.
? The dealers all over India should attained customers properly and make
follow ups regularly to prevents customer loss and increase sales
? The colour choices should be made according to customers choices and
convenience at showrooms.
5"
CONCLUSION
? There is a more preference of small cars observed in metro.
? Dore than 85M are satisfied with the performance of ;yundai cars.
? The ma3or reason for dissatisfaction among the least number of dissatisfied
owners is the maintenance cost which they bear.
? Da3ority of the customers want to have some incentives with the purchase of
car.
? ;yundai is very successful in India but I think their marketing department
could do a little better.
? ;yundai should focus on lower segment cars as there are few cars for that
customer group which is the biggest weekness for ;yundai.
? ;yundai car are comparatively costlier than its competitors thus they should
look for some price cuts.
? ;yundai should concentrate over some promotional activities to attract
potential customers.
58
BIBLIO9RAPHY
B7s:
? 7otler Ahilip, WMar7e%$#' Ma#a'e!e#%K< Aearson /ducation 1
nd
ed.
? 4.:chiffman 0eon, C#s)!er Be,a1$r< Arentice-;all India 8
th
ed.
? 7otler Ahilip L 7evin 0ane 7eller, LMar7e%$#' Ma#a'e!e#%M.
? 5. Aerreault =illiam, .r.L /. Dc!arth .erome < LBas$+ Mar7e%$#' N A
9l&al Ma#a'er$al A""ra+,M.
Wes$%es:
? www.hyundai.com
? www.autoworld.com
? www.mahindra.com
? www.mahindrascorpio.com
5$
APPENDIO
EUESTIONNAIRE
Pers#al De%a$ls
Na!e -MrCMs/PPPPPPPPPPPPPPPPPPPPPPP
Des$'#a%$#PPPPPPPPPPPPPPPPPPPPPPPPPP
O**$+eAddressPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
P,#eNPPPPPPPPPPPPPPPPPPPPPPP
E!a$lPPPPPPPPPPPPPPPPPPPPPPPPPPPP
?Alease give your honest opinions in making this survey a great successB
N%e: Please %$+7 ? $# %,e a""r"r$a%e &=es
G.1 @re you satisfied with the ,uality assurance of R;F95@I S
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
#'
G.1 =hich income groups prefer to buy R;F95@I !@*:S more[
1. 15, '''-2','''
1. 2', '''-25,'''
2. 25, '''->','''
G.2 @re you satisfied with price range of R;F95@IS
1. F/: 1. 6
G.> @re R;F95@I !@*:S 0ooks Datch Four Aersonality[
1. F/: 1. 6
G.5 =hat !olour Fou 0ike offered by R;F95@IS[
1. =;IT/
1. :I0I/*
2. */5 =;I/
>. 80@!7
5. 8/I4/
#1
G.# Is dealer is offering you right price for R;F95@IS[
1. F/: 1. 6
G." Is dealer attending you properly[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
G.8 ;ow do you compare RF69* !@*S with other cars[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
?A0/:/ D/TI6 F69* !@*B -------------------
G.$ @re your family member prefers R;F95@I !@*S for driving[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
#1
G.1' Is RF69* !@* Rgiving you right mileage according your e-pectation[
1. Fes 1. o
G.11 =hat do you find about company marketing strategy while purchasing RF69*
!@*S[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
G.11 Is your family finds RF69* !@*S as a right choice[
1. Fes 1. o
G.12 ;ow do you find R;F95@IS steering working[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
#2
if o suggest new products that ;F95@I should introduce
aB \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
bB \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
cB\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
#>
doc_617872172.doc
This research tries to give an insight into the present market scenario of passenger cars , pan India taking into consideration the dealers as well as consumers of Hyundai Motors India Limited vis-à-vis its major competitors.
INTRODUCTION
1.1 PROFILE OF THE INDUSTRY
BIRTH OF CARS
The birth of the car as we know it today occurred over a period of years. It was only
in 1885 that the first real car rolled down on to the streets. The earlier attempts,
though successful, were steam powered road-vehicles.
The first self-propelled car was built by icolas !ugnot in 1"#$ which could attain
speeds of upto # kms%hour. In 1""1 he again designed another steam-driven engine
which ran so fast that it rammed into a wall, recording the world&s first accident. In
18'" (ran)ois Isaac de *iva+ designed the first internal combustion engine. This was
subse,uently used by him to develop the world&s first vehicle to run on such an
engine, one that used a mi-ture of hydrogen and o-ygen to generate energy.
This spawned the birth of a number of designs based on the internal combustion
engine in the early nineteenth century with little or no degree of commercial success.
In 18#' thereafter, .ean .oseph /tienne 0enoir built the first successful two-stroke gas
driven engine. In 18#1 he again built an e-perimental vehicle driven by his gas-
engine, which ran at a speed of 2 kms%hour. These cars became popular and by 18#5
could be fre,uently espied on the roads.
The ne-t ma3or leap forward occurred in 1885 when the four stroke engine was
devised. 4ottileb 5amlier and icolas 6tto worked together on the mission till they
fell apart. 5aimler created his own engines which he used both for cars and for the
first four wheel horseless carriage. In the meanwhile, unknown to them, 7arl 8en+,
was in the process of creating his own advanced tri-cycle which proved to be the first
true car. This car first saw the light of the day in 188#.
1
The season of e-periments continued across the seas in the 9nited :tates where ;enry
ford began work on a horseless carriage in 18$'. ;e went several steps forward and in
18$#, completed his first car, the ,uadricycle in 18$#. This was an automobile
powered by a two cylinder gasoline engine. The ford motor company was launched in
1$'2 and in 1$'8 he catapulted his vehicle, model t ford to the pinnacle of fame.
!ontinuing with his innovations, he produced this model on a moving assembly line,
thus introducing the modern mass production techni,ues of the automobile industry.
The modern car, therefore comes from a long list of venerated ancestors, and its
lineage will, hopefully grow longer as we progress<
=ith the invention of the wheel in >''' 8.!., man&s 3ourney on the road of
mechani+ed transport had begun. :ince then he continually sought to devise an
automated, labour saving machine to replace the horse. Innumerable attempts reached
conclusion in the early 1"#'s with the building of the first steam driven tractor by a
(rench captain, icolas .acob !ugnot. It was however left to 7arl 8en+ and 4ottlieb
5amlier to produce the first vehicles powered by the internal combustion engine in
1885. It was then that the petrol engine was introduced, which made the car a
practical and safe proposition. The cars in this period were more like the cars on our
roads today.
=ith cars came the era of speed. The first ever land-speed record was established
about a 1'' years back, in 18$8. !ount 4aston de !hasseloup-0aubat of (rance drove
an electric car ?in @cheres near AarisB at a speed of 2$.1> miles per hour. This flagged
off the era of Cwheels racing&, which lasted till 1$#>, after which 3et and rocket
-propelled vehicles were allowed. Then onwards, it has been one big 3ourney...on the
roads.
1
INDUSTRY AS WHOLE
Aost 1$$1, this country has witnessed unprecedented all round development due to
liberali+ation. It has witnessed a flood of foreign companies who have set up their
operations. The monopoly, earlier en3oyed by Indian companies has been offset. The
entire marketing scenario has changed from being a sellers& market to a buyers&
market. It is necessary for all companies to understand the needs of their customers
lest they may be out of business. !ustomer satisfaction and retention is the norm in
this dog-eat-dog market competition and cutthroat competition.
This research tries to give an insight into the present market scenario of passenger
cars , pan India taking into consideration the dealers as well as consumers of ;yundai
Dotors India 0imited vis-E-vis its ma3or competitors. This research consists of the
database, which was collected during the survey and also the findings and analysis of
the survey conducted during the research.
The research approach consists of primary data collected by survey research method
and secondary data collected from various Internet sites, product catalogues and
business 3ournals. 5irect interaction with the concerned people including interview
and ,uestionnaire are the instruments employed during the research.
The research aims at deciphering all the underlying factors considered important by
customers regarding this segment and a comparison of various companies on those
factors so as to provide logical recommendations which would prove useful to
;F95@I D6T6*: I5I@ 0IDIT/5 to maintain its competitive advantage in this
segment in times to come.
T;/ */G9I*/5 T;/:I: 8@:/5 9A6 T;/ D@*7/TI4 :T*@T/4F 6(
;F95@I D6T6*: I5I@ 0IDIT/5 .T;/ T;/:I: 8@:/5 9A6 8*@5
@5 A*659!T A6:ITI6I4 6( T;/ ;F95@I D6T6*: I [email protected];/
A*659!T G9@0ITF, T;/ 8*@5 !6:9DATI6 I !69T*F ;yundai
Dotor India 0imited ?;DI0B is a wholly owned subsidiary of ;yundai Dotor
!ompany,
uth 7orea and is the second largest and the fastest growing carmanufacturer in India. ;DI0 presently markets 1# variants of passenger cars in si-
segments. The :antro in the 8 segment, 4et+ in the 8H segment, the @ccent and Ierna
in the ! segment, the /lantra in the 5 segment, the
nata /mbera in the / segmentand the Tucson in the :9I segment. The ;yundai Ierna has bagged some of the most
2
prestigious awards starting with the 6verdrive C!ar 6f the Fear 1''"&, !8!-TI 18
@uto car C8est Ialue (or Doney !ar 1''"& and CAerformance !ar of the Fear 1''"&
from 8usiness :tandard Dotoring
INDIAN AUTOMOBILE INDUSTRY
India has been the scene of some of the most frenetic deal- making, big e-pansion
announcements, and new car launches in the global auto industry. !onsider that in the
last 18 months alone 4eneral Dotors, (iat, ;onda, issan, and ;yundai have
announced Indian investments valued at roughly J1.5 billion. *ecent visits by
industry bigwigs such as (iat !hairman 0uca !ordero di Donte+emolo, *enault-
issan alliance !hief /-ecutive !arlos 4hosn, and 4D boss 4. *ichard =agoner, .r.,
who arrived in ew 5elhi on @pril 1# to help launch the companyKs !hevrolet :n
early @pril, 4hosn was in India to inaugurate a plant in ashik 3ointly run by *enault
and Indian carmaker Dahindra L Dahindra that will produce an economy car called
the 0ogan. The base model will cost J$,"'', but 4hosn also hopes to launch an ultra-
cheap model in India -- that will retail for about J2,''' -- later in the decade. Aark
locally underscores the new focus on IndiaKs high-speed car market.
*ight now, IndiaKs entire industry -- local producers and transplants -- collectively
manufacture about 1.> million vehicles a year. ThatKs e-pected to double by 1''8, and
if it does, India will surpass 8ritain and !anada in total car production. ;owever, it
still will be light years behind !hina, which is on track to hit 1' million or so in 1''".
@nd IndiaKs growth dynamics look robust. It is home to a young population, and has
rising income levels, an underserved rural market, and an economy galloping along at
$M-plus growth rates. 5uties on small cars fell from 1>M to 1#M in 1''#, though
ta-es remain somewhat high compared to !hina. The government hopes to see India
auto sales 3ump from last yearKs J2> billion to J1>5 billion in 1'1#. If they do, the
domestic auto industry could represent about 1'M of IndiaKs gross domestic product.
4athering small-car making e-pertise in India is key for automakers both to tap a
thriving market for economy cars -- and also to e-port that know-how to other
markets. 8y 1'11, the market for vehicles priced under J1',''' is likely to reach 18
million cars, or a fifth of world auto sales, according to *oland 8erger :trategy
!onsultants. ThatKs up from 11 million today.
>
India also boasts a cheap, but high-,uality labor force with considerable engineering
and manufacturing skills -- and the country is starting to build up big auto components
and engineering and design outsourcing sector that is attractive for international
players. The India auto parts business is e-pected to more than triple in annual
revenues from J11 billion to J>' billion by 1'1>.
INDUSTRY ANALYSIS:-
=ith 11 players in passenger car segment, the total installed capacity is of the order
of over a million vehicles. Dore than 15M of the total capacity remained unutili+ed
in 1''2-'>. Two players, namely, A@0 Aeugeot and Aremier @uto, among the older
Indian entities, e-ited the industry towards the end of 1$$$-''. 5aewoo plant was
closed, 4eneral Dotors and Tata Dotors are involved in taking over some operations.
The scale of operations of Indian car plants is among the lowest in the world,
rendering them uneconomic. The average capacity of an Indian car plant is >','''
units a year, as against 15',''' in .apan and the 9:N 115,''' in 8ra+il and 1"5,''' in
uth 7orea. Iolumes of 1'',''' to 15',''' are considered viable. ;owever, thereare units in India with capacities ranging from $,''' to 2',''' units a year.
Lead Players
C!"a#
y
I#d$a#
Par%#er Clla&ra%r
Fre$'#
E()$%y
Year *
I#+r"ra%$
#
S,are
-./
Daruti
9dyog 46I
:u+uki Dotor !ompany,
.apan 1''M 1$81 5'.>M
;yundai
Dotor one
;yundai Dotor !ompany,
7orea 1''M 1$$# 1$.5M
Telco
Tata
4roup one il 1$>5 1>.5M
;industa
n Dotors
!7
8irla
4roup one 1''M 1$>'s 2.>M
5
(ord
India
DLD
0td (ord Dotor !ompany 8>.11M 1$$5 1.5M
(iat India one (iat @uto :A@, Italy 1''M 1$$" '.$M
;onda
:ie1
:iel
0imited
;onda Dotor !ompany,
.apan $$M 1$$5 5.'M
4eneral
Dotors one
4eneral Dotors !orporation,
9
1''M 1$$5 1.>M5aimler
!hry :tar one 5iamler !hrysler @4 1''M 1$$5 '.1M
:koda
India one Iolkswagen 4roup 1''1 1.'M
Toyota
7irloskar
7irloska
r 4roup
Toyota Dotor !orporation,
.apan 88.8#M 1$$" 1.1M
Total investment by the car companies is estimated at around *s 12' bn with related
component makers chipping in another *s >' to 5' bn. @t the e-isting volumes, all
car companies, e-cept Daruti 9dyog, will take two to five years to move beyond
sustainable break-even volumes.
The Indian industry now has the presence of global players like 4eneral Dotors, (ord,
:u+uki, Toyota, Ditsubishi, ;onda, (iat, ;yundai, Dercedes and :koda. D!s are
widening their product portfolio, which will further intensify competition. This also
marks the ne-t phase of the Indian auto industry after the sector was opened up.
ew players, such as :koda and Toyota have lined up the market with 6ctavia ?from
:kodaB and !orolla ?from ToyotaB, ;onda and ;yundai have come a long way
through !ity, @ccord,
nata and so on as their pri+ed offerings. 8D= is setting upan assembly plant in @ndhra Aradesh.
The car sales in 1''2-'> were estimated at over 811,5'' vehicles, a 2>.2M increase
on the preceding year with car sales at over #11,"5' units. The production of
passenger cars in 1''2-'> increased to "81,"#> units reali+ing a growth of >'M over
the preceding year.
#
It is obvious that the market was overwhelmingly skewed in favour of low-end
?pricedB cars. The non-linear segmentation is a reflection of the fewer models in the
ne-t price range.
Individual buyers, mostly small entrepreneurs, have outnumbered companies to form
a significant chunk of the car buying population. Dost of the car buyers come from
backgrounds such as software and service companies. Individual buyers constitute
roughly "'M of the total demand today, overtaking corporate buyers, who
traditionally represented around #'M of total demand some years back. In the case
of cars like ;yundaiKs :antro, as many as $5M of its clientele is represented by
individual buyers.
0eading brands of cars in India now includeO Daruti 8'', /steem, 6mni, Pen, 8aleno,
@lto =agon *, 6pel @stra, 6pel !orsa, Dercede+, !ity, @ccent, :antro, Indica, (iat
Aalio, :ienna, 0ancer, (ord Ikon. 0ately, while ;yundai entered with
nata, ;ondacame up with @ccord. (ord has been contemplating bringing in Dondeo, while 4DKs
:wing made some healthy waves in its segment. :koda has introduced its 6ctavia,
and may follow with :uperb to strengthen its presence. *eva /lectric !ar !o
launched the base version of its *eva electric car in 8angalore and 4oa. 0ately,
4D has created ,uite a ripple with its !hevrolet based 6ptra.
/-cept for Daruti 9dyog .I with :u+uki of .apan and ;industan Dotors tie-up with
Ditsubishi also from .apan, all the earlier collaborations have been diluted and
converted into fully-owned subsidiaries of the global players like 4D, (ord, ;yundai,
5aewoo, 5aimler !hrysler. @mong the operational alliances is the one between 5!D
group and ;onda in ;onda :iel Dotors. The new entrantsK forays like :koda are
again entering as wholly-owned subsidiaries.
8ased on the long term optimism, new and established entrants in this sector are
introducing new models. @s the number of players multiply, the Indian consumer will
have a plenty of variety and choice in the mid-si+e and small segment. @lthough
small car category continues to be dominated by Daruti 8'' and @lto, :antro and .
Indica, the segment would offer the consumer the choice of pick and choose.
Daruti 9dyog is in talks with various diesel engine manufacturers to set up a diesel
engine manufacturing base in India. Daruti is e-pected to outsource its entire
re,uirement of diesel engines from the proposed local unit. Aeugeot, which supplies
"
diesel engines to Daruti 9dyog for compact car Pen and mid-si+e sedan, /steem, is
one of the companies with which Daruti is negotiating, another being (iat.
The sudden and simultaneous induction of new cars in the segment e-posed the
Indian market to severe competition, especially to the well entrenched Daruti 8'' and
Pen. ewer technologies have been displayed by these entrants. These are aimed at
improved fuel economies and horse-power and at the same time overcoming
stringent emission norms of =estern /urope. 6ther hi-tech features include multi-
point fuel in3ection ?DA(IB system, collapsible steering, independent suspensions for
the wheels, side impact bars, roof stiffners, child-proof locks, disc type front brakes
and several other features hitherto unknown.
In the changing automobile scenario, the market demand is composed of replacement
demand, new entrants to the market, graduation of two-wheeler owners to the car
market and shift of the small car owners to the medium and premium car segments.
The structure of the market by product variation is also witnessing a total
metamorphosis. The erstwhile models have been of higher engine capacity but are
relatively low priced. Aresently, the bulk of the demand is for engine capacity below
1''' cc. The middle segment, which is more price-oriented, is large in terms of value
but the market in ,uantum is much too small. @s indicated, the mid-priced premium
segment is witnessing a significant upsurge.
MULTI-UTILITY 0EHICLES:-
The D9I segment consists of vehicles that are suited both for urban and rural areas.
In rural areas where the roads are bad, D9Is can be used as goods carriers and for
public transportation. In terms of the overall share of the vehicle market, the
importance of D9Is is still low as 1.1M. Traditionally, more than "'M of the
vehicles sold by Dahindra L Dahindra ?DLDB, the main player in this segment,
went to tour operators and customers who bought it for business purposes. /ven the
balance 2'M picked up are primarily by buyers from small towns and rural areas, who
wanted a vehicle that could carry goods.
;owever, during the past couple of years, there has been a ,ualitative shift in demand
profile of this category. The introduction of the Toyota Gualis changed consumer
perceptions about this category. In urban areas, Gualis has tapped the latent demand
8
for a large family car, thus blurring the distinction between the passenger cars and
D9Is. The changing consumer perception has been further reinforced by instant
success of :corpio launched by DLD.. In a bid to tap this growing market, D90 has
also launched its first D9I, Iersa. =ith other players such as ;industan Dotors and
(ord planning to launch the products in this segment, competition is e-pected to
intensify
D9IKsO Darket :hares
C!"a#y S,are -./
Daruti 9dyog 1M
Telco 11M
;industan Dotors 1M
Toyota 7irloskar 1#M
Dahindra L Dahindra >#M
8a3a3 Tempo >M
urceO www.hyundia.com. $
E#1$r#!e#%al Iss)es: -
/mission control is important when it comes to tackling pollution levels on city roads.
In the recent past, the issue has become very important for the domestic automobile
industry. Tracing back to where it all started, we find that the first emission norms
were introduced for petrol vehicles in 1$$1 and for diesel vehicles in 1$$1.
(rom @pril 1$$5, fitting catalytic converters was made mandatory in new petrol
driven passenger cars sold in the four metros of 5elhi, !alcutta, Dumbai and
!hennai. (or this to happen, petrol pumps supplying unleaded petrol were opened in
these cities.
1'
1.2 PROFILE OF THE COMPANY
HYUNDAI MOTOR
;ead,uartersO :eoul, *epublic of 7orea ?121, Fang3ae-5ong, :eocho-4uB
Industry :ectorO Danufacturing
Da3or AroductO @utomobiles
AroductionO 1,#"",818 units per year ?!75 /-cludedB
:alesO 1",>"1 billion 7orean =onQ
@ssetsO 1>,"'' billion 7orean =on
et IncomeO 1,8'> billion 7orean =on
!hairman L !/6O Dong-koo !hung
5ate of /stablishmentO 5ec. 1$, 1$#"
* Production: production total from domestic (Ulsan/Asan/Jeonju) and overseas
manufacturing plants
(India/Turke/!"ina) in #$$%
11
* &ales' Assets and (et income: )undai *otor+s Independent ,inancial &tandard for
fiscal ear #$$%
*- U& . / 01$ 2orean 3on4
Hy)#da$ M%r I#d$a L$!$%ed -HMIL/ 3
=holly owned subsidiary of ;yundai Dotor !ompany,
uth 7oreaIndustry :ectorO Danufacturing
Da3or AroductO @utomobiles
Aroduction !apacityO 18',''' units per annum
Total :alesO 151,851 units in 1''5
5omestic :alesO 1,5#,1$1 units in 1''5
/-port :alesO $#,5#' units in 1''5
et IncomeO >21,181 million 7orean =on ?>1>1>2 thousand 9:JB
!hairman L !/6O Dong-koo !hung
Fear of /stablishmentO 1$$#
* !ompan )istor is given in 56"i7it
?8usiness AurposeB (8efer for detailed *ission in 56"i7it)
*ission of t"e Parent compan 9)undai *otor !ompan9
The relevant business purposes of the !ompany are as followsO
? To manufacture and sell all kinds of vehicles and component parts thereof.
? To manufacture and sell special purpose vehicles and component parts thereof.
? To engage in the e-port and import business.
;yundai Dotor India 0imited ?;DI0B is a wholly owned subsidiary of ;yundai
Dotor !ompany,
uth 7orea and is the second largest and the fastest growing carmanufacturer in India. ;DI0 presently markets 2' variants of passenger cars in si-
segments. The :antro in the 8 segment, 4et+ in the 8H segment, the @ccent in the !
11
segment, the /lantra in the 5 segment, the
nata /mbera in the / segment and theTucson and Terracan in the :9I segment.
/stablished in 1$#", ;yundai Dotor !o. has grown into the ;yundai 7ia @utomotive
4roup which includes over two do+en auto-related subsidiaries and affiliates.
/mploying over 5",''' people worldwide, ;yundai Dotor posted 9:J1#.1 billion in
sales in 1''> ?on a non-consolidated basisB. ;yundai Dotor vehicles are sold in 1$2
countries through some 5''' dealerships and showrooms. ;yundai Dotor !o. is a
sponsor of the 1''# (I(@ 4ermany =orld !up.
;yundai Dotor India has said it will begin production at its second plant in the
country on 6ctober 15, 1''", where it aims to reach a capacity of 2'',''' units
by 1''8.
;yundai India aims to e-port at least 1'',''' cars ne-t year. The carmaker, which
e-ports :antro and @ccent cars made at its factory near !hennai in southern India to
regions such as /urope, e-ported 115,''' cars in 1''# and plans to e-port 25','''
cars in 1''$.
;yundai Dotor India, continuing its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 1$$,512 vehicles in calendar year ?!FB
1''#, an increase of 18.5 percent over !F 1''5. In the domestic market it clocked a
growth of 1$.1 percent a compared to 1''5, with 18#,1"> units, while overseas sales
grew by 1".> percent, with e-ports of 112,22$ units. 0ast year, ;DI0 had clocked in
1>",#2# units from .anuary to .une. !ompared to last year ?C'#B, the sales grew by
$.2M to 1#1,1$# units for the same period ?.an- .une &'"B. 6ut of this 1'',$15 units
are sold in the domestic market while #',2"1 units are e-ported. 0ast year the
domestic market had accounted for $1,1"2 units and the e-ports stood at 5#,2#2 units
The e-port registered a growth of ".1 M to while the domestic market volume has
increased by almost 11M.
!ommenting on the sales this month @rvind :a-ena, IA, Darketing and :ales said RIn
spite of hike in interest rates, ;yundai has still managed to grow in terms of volumes.
=e are sure the ne-t few months will see stronger retail as we overcome our capacity
constraints with the new plant starting operations later this yearS.
The segment-wise cumulative sales in the month of .une 1''" are as followsO @1
:egment T12,558 unitsN @1 :egment U 2,$82 unitsN @2 :egment T 1> unitsN @>
12
:egment T #" unitsN and :9I :egment T 11 units. @t present R;DI0S have 1#" in
.anuary 1''", dealers all over India at present stage
;yundai today en3oys a market share of around 1'M and is looking at the doubling
that figure. 4iven the Indian marketKs response to the :antro, the company seems to
be well on course....
? 8est customer service
? 8est technology
? 8est ,uality products
? 8est value for people.
@ll over R;DI0S launched the second nation wide free car care clinic campaign,
offering our loyal customers free check-ups for keeping their vehicles in best of
condition. ;yundai involved about 21' ;yundai dealers& workshops across the
country.
1>
PRODUCTS PORTFOLIO
15
1#
:egment ame Iariants Arice
8 :antro V7?on-ac,
@!B,V0,@T,V6
1,81,$"2 to 2,$1,$">
8H 4et+ 40/, 4I:, 40:, 40V >,11,''' to 5,18,518
! @ccent 40/, 40/ 1.#0, Iiva,
Iiva !*5i, !*5i
5,1$,''' to ",1>,"1>
5 /lantra 4T, 40:, !*5i 8,52,"$2
to 1',52,8''
/
nata 1.> D%T, 1.> @%T?both arein fabric% leatherB
1,2#$,''' to
1,>5$,'''
:9I Terracan 40 1,'5$,151
Tucson Tucson 1>,#1,$$$
Sa#%r:-
Dodeled on the Hy)#da$ A%s, the Mer+edes A145 and S)6)7$8s Wa'# R,
and then customi+ed to Indian tastes, the :antro takes the best of all the cars
vi+. the driveability of the @tos, the safety L design of the Dercedes @1>',
and roominess of the =agon *.
It claimed to be the leader of its segment since its launch till mid 1''>. 8ut in
(ebruary 1''5, =agon*Ks sales were higher than the :antroKs and in Darch the
@lto stole, too, the :antroKs thunder. The fight for market share goes on with
the launch of new variants and models in the 8 segment. 8ut on an average,
:antro stands to be the market leader.
It is a mid-si+e segment car and the pricing strategy varies over the variants
being offered. The V7 ?non- acB starts at 1.81 lakhs and the costliest variant is
around 2.$1 lakhs. It competes with Daruti&s Pen and @lto, Tata&s Indica and
(iat&s Aalio.
1"
9e%6:-
In response to consumers& demand for something bigger than 8 segment cars,
yet smaller than those in the ! segment, car manufacturers lined up a new
range of variants. This segment is the 8H segment.
The 4et+ is one of the most well designed and graceful looking cars from the
7orean !haebol, especially since the company has tended to conceive cars
that have a Wstreak of ,ueer beautyW about them.
Its chief competitors are (ord (usion and !hevrolet
ark. 8esides these twomodels, (iat&s Aalio and Aetra, 6pel&s :ail L !orsa, Tata&s Indigo and (ord&s
Ikon (lair also face competition from 4et+.
@s every model of ;yundai, 4et+ is also priced premium but at a killer price
amongst its strategic group. Its variants cost from >.1 lakhs to 5.1 lakhs.
A++e#%:-
In the mid-si+e segment, the @ccent leads with a market share of 1" per cent,
pitted against the likes of Ikon, ;onda !ity, !orsa, /steem and the 0ancer.
@ccent 40: has been positioned as the car that provides power and
performance, while @ccent !*5i targets those consumers who are conscious
about the cost per kilometer. The !*5i variant has proven to be a deadly
weapon in performance and against competition.
The competitors are (ord&s Ikon, ;onda&s ;onda !ity, Daruti&s /steem,
6pel&s !orsa, Ditsubishi 0ancer and their variants. @ccent stood out as the
market leader in its segment most of the time. The pricing has been hiked at
times owing to the rising costs and yet the price varies over 5.1$ to ".1 lakhs.
Ela#%ra:-
@ggression is writ clearly across the /lantraKs face. This is typically the kind
of design that the young car buyer will identify with. If the ;yundai /lantraKs
18
design does not appeal to the stiff upper-lip gentleman, the features-to-value
e,uation surely will.
;yundai has packed the /lantra with electronic gadgetry and loads of active
and passive safety features that the competition has not thought of offering in
their cars. The cars that are competition for the /lantra like the Toyota !orolla,
the :koda 6ctavia,, !hevrolet 6ptra and the Ditsubishi 0ancer.
Aositioning and pricing have been the key factors for the success of ;yundaiKs
products. In the case of the /lantra, too, ;yundai has positioned it s,uarely in
the cusp between the ! and 5 segments. Aricing wise it is in the higher end of
the ! segment, at the same time it is as feature rich as the average 5 segment
sedan.
Ariced at *s 8.5 lakh for the lower trim 4T variant and going up to *s 1'.5
lakh for the !*5i variant, the /lantra is good value for money. The
competition will have a tough time beating this combination of features at this
price.
S#a%a:-
The countryKs lu-ury car market constitutes one per cent of the total passenger
car and D9I market. The section of the population it targets is hence
e-tremely limited.
;yundai offers nata as a brand by associating the carwith royalty and high-class society. It offers all the features a lu-ury car can
demand and also establishes itself with a killer low price and decent looks
along with large periods of warranty.
Its chief competitors are (ord Dondeo, Toyota !amry, ;onda @ccord, :koda
6ctavia, 8en+ c class, Toyota !orolla, 6pel Iectra. The variants of
natahave been placed in the range of 12.5$ to 1>.#$ lakhs. The huge advantage of
the pricing strategy ;yundai employed is in terms of the warranty period and
thus the car has been targeted to cut through profits of the other models in this
segment.
1$
Terra+a#:-
;yundai&s most powerful :9I, The Terracan pro3ects a strong masculine
identity that evokes ;yundai&s strategic goal to challenge other entrants in the
medium-heavy >=5 market with a vehicle that weds performance with
comfort, refinement and fresh styling. Terracan&s on-road ride comfort,
refinement and ease of driving have been honed as ma3or Terracan strengths.
The overall look of the :9I is one of a simple, elegantly straight-edged body,
personali+ed by several highly styled elements.
The chief competitors for it are Ditsubishi&s Aa3ero, ;onda&s !*I, 4rand
Iitara, !hevrolet (orrester, (ord&s /ndeavor. Its 40 variant costs around 1'.5
lakhs.
The pricing strategy targets a premium customer who values style and sports
utility as a lifestyle statement. Though an element of value for money e-ists,
style and aggression drive the flow. The car will be positioned as a value
product targeted at the young, demanding male.
T)+s#:-
=e have had many good :9I&s, but all of them have been petrol-drivenN a
diesel-engine, Xright-si+eK lu-ury :9I was not available. This led to the
genesis of Tucson. The Tucson boasts of a sedan-like monoco,ue construction.
It holds features fit for a :9I ride and a better performance with respect to
diesel variants in general.
The macho machine comes with a long warranty period. ;yundai made an
effort to provide a lot of premium features without bursting a buyerKs budget. It
costs around 15 lakhs but though a value for money proposition has been
offered, the model fails to cater true lu-ury car features. ;ence the pricing
seems to be of concern.
1'
Ser1$+es O**ered:-
? @uthori+ed :ervice centres.
? /mergency *oad :ervice.
The company&s greater focus on the ,uality of its after-sales service made ;yundai
provide these services, with servicing available at their own authori+ed centers and
other service points. ;yundai reflects its image of value for money in the service it
offers. In order to deliver the highest value through their products they have set up
more than "' dealer workshops e,uipped with latest technology machinery and
international ,uality press, body and paint shops, across the country.
There are three company-owned outlets called K;yundai Dotor Ala+aK that will serve
as model dealer showrooms and service workshops for the customer. !ustomer !are
!entres which have specially e,uipped :antros that can provide emergency service to
all our customers anytime, anywhere have been provided.
11
DISTRIBUTION STRUCTURE FOR HYUNDAI MOTORS
11
(actory%Alant
!L(@ !L(@
5ealers
5ealers
5ealers
5ealers
5ealers
5ealers
SALES STRUCTURE
12
D5
Aresident
/-ecutive 5irector
?Darketing L
:alesB
4D
?:alesB
*egional
Danager
*egional
Danager
*egional
Danager
*egional
Danager
:ales
Danage
r
:ales
/-ecutives
?dealersB
:ales
Danage
r
:ales
/-ecutives
?5ealersB
:ales
Danage
r
:ales
/-ecutives
?5ealersB
:ales
Danage
r
:ales
/-ecutives
?5ealersB
Tar'e% Mar7e% S%r)+%)re:-
Mar7e% Se'!e#%a%$# &y Ca%e'ry
Aremium and 0u-ury '.5M
/-ecutive :egment 1."M
Did-si+e 15.$M
D9Is 1.1M
:i+e and compact "$."M
Mar7e% Se'!e#%a%$# &y 9e'ra",y
Se'!e#% S,are-./
orth >2
/ast 8
=est 1#
uth 12Mar7e% Se'!e#%a%$# &y Pr$+e * Car
6ver *s 1.' mn '.8
*s 5'1,''' to *s 1.' mn 2.1
*s 2'1,''' to *s 5'',''' >$
9nder *s 2'',''' >"
This table illustrates the geographical and price wise segmentation of the passenger
cars market and the percentage share they account to. Aassenger cars are mostly aimed
at urban areas, though a shift to focus on the semi-urban and rural areas is becoming
evident. D9I&s stand to cater to the need of semi-urban areas more precisely owing
to the space and performance features D9I&s offer.
1>
In general, car has always been a status symbol and a convenient L safe
transport utility. Thus the passenger cars are targeted towards income groups which
can afford and mindsets which demand a statement of style. ;DI0 is targeting
customers in the 15-5' age groups. ;yundai has leveraged on this by providing value
for money products with compact, stylish designs.
C)s%!er Pr*$le : C!"e%$%rs:-
Na!e Tar'e% C)s%!er Pr*$le C!"e%$%rs
:antro
?8B
8udget constrained L budget conscious
buyerN parking space consciousN
a small familyN middle income groups.
Daruti Pen, @lto, Tata Indica
and (iat Aalio.
4et+
?8HB
8uyers who needs more Aower, an
affordable price, medium si+e and
trendy lookN buyers looking for a good
value for money proposition.
(or those who lead their own life and
create their own benchmarks.
(iat Aalio and Aetra, 6pel :ail
L !orsa, Tata Indigo and (ord
Ikon (lair
@ccent
?!B
5emands power and performanceN is
conscious about the cost per kilometer.
*e,uires a medium si+e at reasonable
prices with a blend of fuel efficiency,
power and stylish look.
(ord Ikon, ;onda ;onda !ity,
Daruti /steem, 6pel !orsa,
Ditsubishi 0ancer
/lantra
?5B
;igh income groups who value
performance and command a lu-urious
style of living.
Toyota !orolla, :koda
6ctavia, !hevrolet 6ptra and
Ditsubishi 0ancer.
nata?/B
;igh income and elegant class.
5emand a status symbol of lu-ury
which conveys the stylish living the
owners lead.
(ord Dondeo, Toyota !amry,
;onda @ccord, :koda 6ctavia,
8en+ ! class, Toyota !orolla,
6pel Iectra
Terracan a premium customer who values style Ditsubishi Aa3ero, ;onda
15
?:9IB and sports utility as a lifestyle
statement. young, demanding maleN
high income group.
!*I, 4rand Iitara, (ord
/ndeavour, !hevrolet
(orrester
Tucson
?:9IB
@ merge of lu-ury, comfort, compact
proportions and fuel efficiency of
sedans with the handling, build and feel
of a sport utility vehicle ?:9IB targets
at a customer who demands such a
crossover with a good amount of inner
space
D$s%r$&)%$#:-
;DI0 has > regional offices in India, at 5elhi, Dumbai, !hennai and 7olkata.
;DI0&s fully integrated state-of-the-art manufacturing plant is located near !hennai
which boasts some of the most advanced production, ,uality and testing capabilities
in the country.
In continuation of its investment in providing the Indian customer global technology,
;DI0 has announced plans for its second plant. ;yundai Dotor India 0td ?;DI0B
has now planned to increase its production to #'',''' units per year by 1''" from
>'',''' units as planned earlier. The announcement was made on (eb1',1''# by
;yundai Dotor !ompany&s ?;D!B !hairman Dr. !hung Dong-7oo during his visit
to India.
The e-isting plant capacity is 18',''' units per annum which will be increased to
2'',''' units. The second plant will add another 2'',''' units, which is under
construction and e-pected to be completed by 1''". The plant will be built on a 1.1
million s,uare meter site ad3acent to the e-isting facility with an investment of J>5'-
J5'' million on its new integrated facility. ;DI0 plans to e-pand its dealer network,
which will be increased from 15" to 1'' in 1''#.@nd ;DI0&s service network will be
e-panded to over 1,''' in 1''#.
The details of the locations of the - *egional offices
1#
? 5ealers
? @uthori+ed :ervice !entres
? ;:!A ?;yundai :ervice !enter pointB are in the e-hibits.
1"
1.; COMPETITION ANALYSIS
C!"ar$s# # %,e !ar7e% s,are< e="r%-"rs"e+%s * I#d$a# A)%!&$le
Se+%r:-
Aassengers
Iehicles ?AI:B
(rom @pril-
ovember
'5-'#
(rom @pril-
ovember
'#-'"
Total
Darket
:hare ?in
MB
The et
!hange
between the
period
?in MB
Total
number of
e-ports in
@pril '#-'"
Daruti 9dyog 1,#$2#' 1,$1,181 51.1 8.1 12,'>2
;yundai Dotors
India 0td.
8$,'"5 1,'", '## 1$.1 1'.1 #8,2">
Tata Dotors $5,>'1 1>,2>8 1#.# -1." 11,1'5
;onda :iel !ars
India 0td.
12,18# 1>,2>8 >.> 5.1 21
(ord India Avt. 0td 15,'1# 1',511 1.$ -2'M $,$18
Mar)%$ )dy'
(rom its inception Daruti has been in only in one line of business, car manufacturing.
The company manufactures passenger cars at its factory in 4urgaon, ;aryana. Daruti
en3oyed a dream run in the pre liberali+ation era en3oying a market share of over 8'M.
8ut with increased competition in the car market its market share has currently
dropped below #'M. Its first product, Daruti 8'' was launched in 1$82. The car was
launched as a Wpeople&s carW with a price tag of *s>', '''. This changed the industryKs
profile dramatically. Daruti 8'' was well accepted by middle income families in the
country and its sales increased from 1,1'' units in (F8> to more than 1'',''' units
in (F$$. ;owever in (F1''', this figure came down to 18$,18> units, due to rising
competition from ;yundaiKs K:antroK, TelcoKs Indica and 5aewooKs KDati+K. In 1$85, the
all-terrain vehicle 4ypsy was launched. The Daruti 1''' was launched in 1$$' and
the Pen in 1$$2. To counter increasing competition the company has launched a series
18
of new models and plans to launch one new model every year. The present models
include the 8''cc small car, 6mni, /steem, Pen, @lto, =agon U*, 4ypsy, 8aleno and
Iersa
H#da
;onda :iel !ars India 0td., ?;:!IB was incorporated in 5ecember 1$$5 as a 3oint
venture between ;onda Dotor !o. 0td., .apan and :iel 0imited to manufacture
;65@ passenger cars in India. The company is I:6 $''1 L I:6 1>''1 certified.
The plant was set up in 1$$" with an investment of *s. >5' crores ?paid up capital *s.
2#' croreB and in 1''5 the investment stood at *s. 8'' crores. Their product range in
India includes the ;onda !ity PV, @ccord and !*-I. !ity PV is today recogni+ed as
one of the most successful car brands in the country. It is strongly associated with
durability, reliability, ,uality and fuel-efficiency. !ity PV, the latest version of the
!ity, including the IT/! version, was introduced on 6ctober 5, offering enhanced
power and style.
In addition to the !ity PV, @ccord and !*-I models made them a premium segment
leader in the Indian passenger car industry.
;onda is operating only in segment 5 cars i.e. the premium segment.
Ta%a M%rs
Tata Dotors 0imited is IndiaKs largest automobile company, with revenues of *s.
1>,''' crores ?9:5 5.5 billionB in 1''5-'#. It is the leader by far in commercial
vehicles in each segment, and the second largest in the passenger vehicles market with
winning products in the compact, midsi+e car and utility vehicle segments. The
company is the worldKs fifth largest medium and heavy commercial vehicle
manufacturer. Training to the employees is provided by the vendors only. :howrooms
on their part are providing incentives to the car sales e-ecutive for promoting
accessory. They also deal in only genuine accessory approved by Tata. They provide
door-step facility to the customer when it is re,uired.
Ty%a
1$
Toyota 4enuine @ccessories are manufactured to the e-act specifications of each
individual Toyota model. This means they fit precisely and conform to every contour
of the vehicle. Toyota 4enuine @ccessories are designed, tested and manufactured to
strict Toyota global standards. This ,uality and reliability is supported with up to a 2
year, 1'','''km warranty.
LATEST E0ENTS DONE BY HMIL
? Hy)#da$ M%r % Rll )% CN9 Sa#%r
;yundai Dotor India ?;DI0B plans to introduce a factory-fitted !4 kit version
of its popular passenger car :antro with the option of petrol as a second fuel.
;yundai will roll out the !4 version of the :antro from itKs e-isting plant in
!hennai by the end of 1''" or early 1''8.
? Hy)#da$ M%r C % !a7e ;55<555 ,y&r$d +ars a year-
!armaker ;yundai Dotor !o plans to make 2'',''' gasoline-electric or diesel-
electric powered vehicles by 1'15 as demand for more fuel-efficient cars is rising.
? Hy)#da$ sales )" 14.1 "er +e#% $# Se"%-
;yundai Dotor India achieved a growth of 1>.1 per cent in the domestic market in
:eptember 1''#, selling 1#,>15 vehicles during the month. ;yundaiKs cumulative
sales during the month were 1#,>$1 units a growth of 11.5 per cent, over
:eptember K'5.
6verseas sales in :eptember stood at 1','"" units, a growth of ".5 per cent over
the same month in the previous year. ;yundai Ierna, launched in the last week of
:eptember 1''#, has sold 1,'>2 units in the first five days. The segment-wise
cumulative sales in :eptember 1''# areO @1 segmentO 11,>'$ units, @2 segmentO
2,88" units, @> segmentO 1>" units, @5 segmentO 11 units, :9I segmentO 1" units.
? Hy)#da$ M%r &e%%ers $%s &ra#d 1al)e
;yundai Dotor !ompany has reported a 1"-per cent appreciation in its brand
value, emerging "5th in the latest survey of worldKs leading brands, 3ointly
conducted by branding consultancy firm Interbrand and the :usiness 3eek
maga+ine.
2'
The 7orean automaker ;yundai Dotor raked 8>th in its debut appearance on the
8est 4lobal 8rands list last year.
The 1"-per cent appreciation in brand value of ;yundai makes it the fastest
growing automotive brand and places it among the top five biggest gainers in
brand value. ;yundai, with an estimated brand value of J>.1 billion, has also way
ahead of its competitors. ;yundai has been making continuous improvements in
the ,uality of its vehicles, which in turn has fueled a steady increase in sales and
customer confidence in the brand. In fact, ;yundaiKs sales have been built on a
balanced management of its brand value and marketing. The group sold 2."
million vehicles in 1''5 and ranked the si-th largest automotive manufacturer in
the world. ;yundai includes over two do+en auto-related subsidiaries and
affiliates. ;yundai Dotor, which employs over #8,''' people worldwide, posted
J1".28 billion sales in 1''5. Its vehicles are sold in 1$2 countries through some
5,''' dealerships and showrooms.
? Hy)#da$ ra!"$#' )" $%s dealers,$" #e%>r7
=ith ;yundai Dotor India 0td. e-pecting its second plant e-pected to go into
operation soonN the company is now looking to speedily ramp up its dealer
network to push sales for the increased production.
;DI0 reportedly had 1#" dealers in .anuary 1''", and plans to e-pand its
network to 15' by 5ecember.
ew dealerships are likely to follow the proven format, with sales, services and
spares facilities housed together.
The company has been witnessing rather flat sales over the past few months,
though it has a healthy stable of cars, which include the 4et+, the :antro, and the
Ierna. The lacklustre sales are reportedly attributed by the company to production
capacity constraints, as a result of which domestic sales suffered, and even e-port
orders saw some backlogs.
? Hy)#da$ O+%&er sales )" ?1 "er +e#%
21
;yundai Dotor India 0td ?;DI0B announced yesterday that the companyKs sales
grew by "1 per cent at 11,"'> units. The company sold 1$,''" units in the
compact car segment, 2,5'2 units in mid-si+e car category, 151 units in the
premium mid-si+e car segment and 12 units in the lu-ury car segment, a company
statement said. ;DI0, Indian arm of the 7orean automaker, sold 1$ units of
sports utility vehicle KTerracanK.
? Hy)#da$ %ar'e%s e="r% ear#$#'s * Rs.2< ?55 +rre *r %,e *$s+al
;yundai Dotor India 0td e-pects to e-port $5,''' cars in the year against "','''
last years, according to company officials. =ith about *s1, 215 crore in e-port
earnings in the first si- months of this year, the company is confident of ending
the year with an e-port income of *s1, "'' crore, up from *s1, "'' crore last
year. 6f the 1,25,1#5 cars e-ported from India in 1''>, ;yundai Dotor India
accounted for 85,''', he said and added that a ma3ority of the companyKs e-ports
were going to Wthe most discerning marketsW of /urope and 0atin @merica,
including the afta ?orth @merican (ree Trade @greementB area of De-ico. This
was the best possible comment on the manufacturing standards of the company
and its vendors, he asserted.
21
LITERATURE RE0IEW : PROBLEM FORMULATION
The conceptual discussion brings into front the factors on which early adopter and late
adopters differ.
me these factors are awareness, media habits, loyalty, age , income,education, occupational status, risk, variety seeking, and attitude towards change.
!huan-(ong shih L @lladi Ienkatesh his research shows the importance of 5iffusion
of Innovation. They suggested the e-tended model of 5iffusion of Innovation. The
research shows that though diffusion process cannot be understood without studying
the nature of adoption, to complete the diffusion study use-diffusion process also
needs to be e-amined. This research was based on two criteria rate of use and variety
of use. They came out with four typologyO intense, speciali+ed, non speciali+ed and
limited.
@nother research carried out to find the factor, which affects the adoption of Internet
banking. The result of the research shows that internet accessibility, awareness,
attitude towards change, computer and internet access costs, trust in one&s bank,
security concerns, ease of use and convenience are the ma3or factors affecting the
adoption of internet bank services in Dalaysia. The demographic difference between
Internet bank users and the non-users were not very evident in the study, particularly
with reference to age and educational background.
!hristophe Ian den 8ulte did research on The 8ass 5iffusion Dodel is not a Di-ture
of Innovators and Imitators. This paper has shown that the 8ass model is all too often
misinterpreted as representing the diffusion of innovations between two different
types of actors, innovators and imitators. 8ass ?1$#$B assumed that innovation
acceptance is driven in part by social contagion, and that Rthe probability that an
initial purchase will be made at Ytime tZ given that no purchase has yet been made is a
linear function of the number of previous buyersS
C!"a#y@s 0$s$#A-
;DI0&s vision for the future is to beO
;T"e <eader in t"e Indian Automo7ile Industr'
!reating !ustomer delig"t and &"are"olders =ealt">
A pride of India?4
22
Cre 0al)esA-
The (ive Ialues identified are as followsO
? !ustomer 6bsession
? (ast, (le-ible and (irst mover
? Innovation and !reativity
? etworking and Aartnership
? 6penness and 0earning
MARBETIN9 STRATE9Y OF HYUNDAI
In this section we identify the general marketing strategy under which this plan is
being developed. It is very possible that a product will follow more than one strategy,
and it is not in the focus of this study or plan to cover the strategies other products
would sail upon e-cept for the action plan we suggest. It can make the picture clear if
we take note of the following issuesO
The mission statement says,
? To manufacture and sell special purpose vehicles and component parts
thereof.
? To manufacture and sell all kind of vehicels and components parts
thereof.
The vision of the organi+ation is
? To rank among the world&s top five automakers.
The ob3ectives of the organi+ation speak of
? To increase the share in Indian Aassenger !ars? includes :9I&s and
D9IsB Darket
? To e-pand its e-port volumes to @merica, /urope and Diddle /ast.
me (actsO2>
? The Indian Aassenger car industry ?e-cluding D9IsB is growing at 12.>M
?!@4*B and the D9I market is growing at 12."M ?There e-ists certain
element of doubt on the pro3ected !@4*, due to dependence of D9I
market on certain other factors. !@4* calculated over 1' years data for
passenger cars and for > years on D9Is. (or clear understanding look in
/-hibit B.
? The cars industry accounts for 5'M of automotive sector globally, whereas
it accounts to 15M in India. Indian !ar market is the second largest in
terms of growth, after !hina.
? ;DI0 has now planned to increase its production to #'',''' units per year
by 1''".
A*6A6:/5 @!TI6 A0@O 0@9!; @ D65/0 T6 !@T/* T6 T;/ D9I
:/4D/T.
The elements of Darketing :trategy areO
Prd)+%C Mar7e% Sele+%$#:-
;DI0 needs to cater to its e-isting markets from its present product lines. 8ut
;DI0 needs to focus on the segment of D9I market. Though launching a D9I
definitely needs certain competencies, they are not much different from what ;DI0
has and its parent company already serves to this segment, which makes it far more
easier. 8y launching a D9I, ;DI0 would serve to the rural, semi-urban and urban
markets and spread its network more into the roots of Indian market. This is purely a
Darket 5evelopment :trategy as the product already e-ists ?;yundai is being
produced in 7orean domestic market alreadyB, but now it is being offered to the
Indian market. =e would discuss the benefits we can associate and the design
specifications of this product in the ne-t section.
Pr$+$#':-
;yundai has always been considered to be a ,uality product provider and is mainly
associated with Ialue for Doney, premium features at lower prices, stylish L trendy
25
designs and superior ,uality. ;yundai has to be priced taking into consideration the
perception customers have about ;yundai.
:T*@T/4FO Ialue Aricing retaining the ,ualities of being Aremium 8rand.
6b3ectiveO To offer high ,uality product at a competitive priceN to enable a budget
conscious buyer purchase the productN to enable many people to buy a new car with
modern levels of safety and environmental protectionN to win loyal customers and
retain the e-isting customers.
;T"e polic is to "old t"e price@line at constant levels sans passing on t"e inflation
effect to t"e customers4?
D$s%r$&)%$#: -
;DI0 is planning to e-pand its dealer network from the present 15" to 1'' this year
to reach out to semi-urban and rural areas and to increase its market share from the
present 1' per cent.
the ob3ective would be to reach the lucrative regions whichcan create huge number of sales. To begin with launching ;yundai in the following
states Aun3ab, ;aryana, 9ttar Aradesh, Daharashtra, 7erala and @ndhra Aradesh,
where there is a si+eable affluent rural population seems to be a good idea to start on
with. @nd also as ;yundai would be targeted at being a large family car% van, we can
head on with launching it at selected urban cities in other regions and the ma3or cities
of India.
C!!)#$+a%$#:-
Aositioning campaignO ;yundai needs to be positioned as a large spaced, power
vehicleN as a cargo van which can be used both for (amily use and transportation. It
stands to be important to win the customers& hearts by adding the emotional touch of
being a large family&s car and a very good DAI.
Ad1er%$s$#':-
Are-launch campaign, TI campaigns, print ads, e-resources and certain areas of
wireless% mobile advertising.
Pr!%$#:-
Test rides, (inance schemes, @fter sales service discounts.
2#
PROBLEMS FORMULATION
? The company plans its raw material re,uirement from the sales pro3ection, which
was done by the marketing department of the company. @t the end of every month,
marketing department creates its budgeted sales for the e-isting product and new
products. Darketing department creates its budgeted sales by considering demand of
the product, actual sales in the previous month and the sales in the current month of
the previous year.
? Aroduction, Alanning and Daterial !ontrol 5epartment ?AAD!B is based on the
sales pro3ection and calculates the re,uirement of the raw material for each
department for each product. AAD! department authenticates raw material issued.
? @fter the AAD! 5epartment calculates the re,uirement of the raw materials, the
purchasing department places an order to the vendor or supplier for each
department. Then the supplier dispatches the material in the factory premises.
? ow the raw material proceeds through the testing process. ;ere it is checked
whether the raw material is as per the standard ,uality prescribed by company at the
time of placing an order. @t the time of testing they also allocate specific
identification number to each material so that it can be referred at the time of
production, if any defect occurs. Then raw materials are issued to the production
department.
? !ompany is following batch production process. They assign the batch number and
lot number so that if any problem occurs while it is consumed they can detect the
fault.
2"
OBDECTI0E AND METHODOLO9Y
;.1 OBDECTI0E OF THE STUDY
? The basic idea of thesis is to gather more knowledge about automobile
industry of India IndiaKs entire industry -- local producers and
transplants -- collectively manufacture about 1.> million vehicles a
year.
? The main ob3ective is to find out marketing strategy of R;DI0S where
we found different attribute of marketing strategies such as, road
demonstration, brand loyalty, market segmentation, brand upgardation
of different products of company which increase the market share of
the company in particular field.
? There is very much needed for the automobile sector because it is very
much need to tell about company profile, its products, there marketing
strategy to upgrade there brand loyalty in the automobile sector which
increase there market share. ;yundai motors is making the tradition of
making passenger car fastest growing car after Daruti :u+uki. ;yundai
motors has recorded sale of 1$$,512 vehicles in the calender year ?cyB
1''#, an increase of 18.5 percent over cy 1''5.
? :ample- during the thesis period we have gone through nearly recorded
1'' of customers where all of them are satisfied with ;yundai
performance buying of b and c segment of cars.
SI9NIFICANCE OF THE STUDY
28
? (or any business venture, marketing and sales go hand in hand.
6pportunities come and go but business comes from the ones, which
are handled properly in terms of leads.
? 0eads for any new opportunity are very important for it to turn out a
profitable venture.
? Darketing and sales work hand in hand for leads.
? Aromotion plays a very important role in both the departments.
Aromotion helps us to market a product properly and also helps in
increasing the sale of the product as compared to competitors.
MANA9ERIAL USEFULNESS OF THE STUDY
? ;elps to have sale e-perience
? ;elps to deal with different customers
? ;elps to overcome the ob3ections of the customers
? ;elps to understand the problems of agents in a broader prospect
? It provides a platform where managerial role can be played effectively
and efficiently.
SCOPE OF THE STUDY
? 5eep insights would give me the clear knowledge of strategies adopted
and which would make me a better marketing professional.
? Important from a consultant prospective finding loopholes in marketing
strategy of the company if any.
? !ontribution to the institute and my fellow colleagues and a uni,ue piece
of work.
? The basic thing which is needed for thesis of ;yundai motors is to increase
market share, increase brand loyalty by providingO
1. Ialue for money car
1. To implement best technology
2$
2. To provide better customer service
>. to make ,uality products.
>'
;.2 METHODOLO9Y
The study conducted to achieve the aforesaid ob3ectives will be both e-ploratory and
conclusive research in nature. It also involves personal interviews based on the
,uestionnaire format.
DATA COLLECTION METHODS:-
? Arimary source
? :econdary source
Pr$!ary s)r+es:-
The data re,uired for the study is based onO
1. Aersonal interviews based on pre-decided format of structured undisguised
,uestionnaire.
1. Aersonal interview with the !ompany representatives regarding the various
data.
2. Aersonal interview with the !ompetitors !ompany&s representatives regarding
the various data.
Se+#dary s)r+es:-
The secondary data consists of information collected fromO
? =ebsites
? Aublished data on @9T6/VA6
? Aersonal Interviews
DATA ANALYSIS TOOLS:-
? 9se of scales and graphs for analysis.
E)es%$##a$re des$'# *r!)la%$#:-
? =e asked ,uestions to different ;yundai customers and potential buyers as
well. =e 3ust wanted to geather information about what they feel to be a
;yundai car owner and how much satisfied are they with their cars
performence and after sales services.
>1
? =e asked both open and close ended ,uestions to the customers. =e asked
,uestion from different segment car owners. 6ur sampling si+e was about 1''
peoples which include present owners of ;yundai car and potential buyer.
S)r1ey Area: -=e collected all information from various ;yundai showrooms and
service centers ?5/0;I 60FB
T$!e *ra!e O- # weeks
Resear+, des$'#:-
=e have used following research design in making our pro3ectO-
/VA06*@T6*F */:/@*!; 5/:I4
It seeks to discover new relationships between several facts..It discovers ideas and
insight.The ma3or purpose of the e-ploratory research design is to do the clear
identification of the problems.8igger problems are broken in smaller
segments./-ploratory study is the initial stage of marketing research as it is in a
developing stage./-ploratory research helps in understanding e-planations of various
problems of marketing mi-.The e-ploratory study may be used to clarify concepts and
causes of problems It is also useful to test the aplicapility of new policies.It is
dynamic and changes with new ideas and concepts.
!6!09:II/ */:/@*!; 5/:I4
It is of two typesO-
? 5escriptive research
? /-perimental design
It helps the marketing e-ecutive to arrive at a suitable decision from the
various alternative decisions. The various alternative conclusions and selecting the
most suitable conclusion may be done by it&s one of the forms, 5escriptive research
design. In this research design ,only a partial situation is clarified but in case of
e-perimental research design a alternative is selected. Therfore, the e-perimental
research design is considered an important conclusive research design.
>1
DATA ANALYSIS
1. EUALITY ASSURANCEA-
4*@A; >.1
ANALYSIS:-
!ustomers analysis report tells that about 5'M says that ;F95@I driving is good
because of machinery used in the car components. but reaming people says that they
don&t find comfortable with ;F95@I while driving.
>2
2. INCOME 9ROUP OF PEOPLE WHO BUYS HYUNDAI:-
4*@A; >.1
ANALYSIS:-
The above chart shows that more than 5'M of income group of 15,'''-2','''
prefer ;F95@I car to be there first car in the family. =hich proves their brand
loyalty and product differentiation from the other cars.
>>
;. PRICE RAN9E:-
4*@A; >.2
ANALYSIS:-
Da3ority of the people are satisfied with price range of ;F95@I where they cant
afford the car they finance the car.
>5
4. HYUNDAI AS PERSONALITY CAR:-
70%
30%
YES
NO
4*@A; >.>
ANALYSIS:
=hile buying ;F95@I car more than 5'M of people think that it suits to there
personality which upgrade there social symbol in the society especially in women.
>#
F. COLOUR CHOICE:-
4*@A; >.5
ANALYSIS:-
Dainly people make choice for colours which suits their personality
>"
G. DEALERS PRICE :-
4*@A; >.#
ANALYSIS:-
=hile purchasing most of the people think that yes their cars match with their
personality while other who did&t agreed ,ma3ority were because of price range.
>8
?. DEALER ATTENDIN9 PROPERLY:-
4*@A; >."
ANALYSIS:--
It is said by the customers that more than 5'M of dealers are attaining customers
properly and remaining of them have mi-ed thought for dealers attending them. many
of the customers are happy with dealers attending to them.
>$
H. HYUNDAI@S COMPARISON WITH OTHER CARS:-
4*@A; >.8
ANALYSIS:-
@bout 2'M of people says that ;F95@I cars the e-cellent car. If so it is better for
;F95@I to capture the big margin of market share in India, which shows the
compatibility of ;F95@I as comparison to other cars.
5'
I. FAMILY PREFRENCE:-
J
4*@A; >.$
ANALYSIS:-
It has seen that most of the Indian family prefer :antro car from the products of
;F95@I which shows the :antro&s demand and it strengthen it&s market share.
51
15. MILEA9E:-
4*@A; >.1'
ANALYSIS:-
The analysis shows that ;F95@I&: mileage is much better than any other car. this
is mainly because they run very much fuel saving not in highways but also in cities,
which how its better machinery used in car.
51
11. MARBETIN9 STRATE9Y OF HYUNDAI:-
4*@A; >.11
ANALYSIS:-
The marketing strategy of ;DI0 upgarde the brand loyalty of :antro in b segment
where the process of strategy consist of market share, brand promotion among the
people through road demonstration, auto Ue-pos and showroom.
52
12. HYUNDAI AMON9 FAMILY PEOPLE:-
70%
30%
YES
NO
4*@A; >.11
ANALYSIS:-
The ;F95@I is very much popular car among the Indian families, because of its
features, looks, price range, product ,uality and after sales service which proves there
brand loyalty among the potential customers.
5>
1;. HYUNDAI@S STREEIN9:-
31%
24%
21%
14%
10%
EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR
4*@A; >.12
ANALYSIS:-
@fter driving ;F95@I most of 5'M customers find that ;F95@I steering is
very much comfortable while driving easy to move at 2#' angle with power futures
in that. again it proves ;F95@I as the right choice among the customers in the
country.
55
FINDIN9S AND RECOMMENDATIONS
FINDIN9S
? India has been the scene of some of the most frenetic deal- making, big
e-pansion announcements, and new car launches in the global auto
industry
? IndiaKs entire industry -- local producers and transplants -- collectively
manufacture about 1.> million vehicles a year
? !onsider that in the last 18 months alone 4eneral Dotors, (iat, ;onda,
issan, and ;yundai have announced Indian investments valued at
roughly J1.5 billion.
? ;yundai Dotor India, continuing its tradition of being the fastest growing
passenger car manufacturer, registered total sales of 1$$,512 vehicles in
calendar year ?!FB 1''#, an increase of 18.5 percent over !F 1''5. .
? In the domestic market it clocked a growth of 1$.1 percent a compared to
1''5, with 18#,1"> units, while overseas sales grew by 1".> percent, with
e-ports of 112,22$ units. 0ast year, ;DI0 had clocked in 1>",#2# units
from .anuary to .une.
? the ob3ective of the thesis of increasing the market share and studying
various criteria important to customers has been fulfilled from the primary
and secondary data collected from various sources ;yundai motors can
improve market share, by increasing brand loyalty, giving more ads and
promotions, increasing *L5 etc
5#
RECOMMENDATIONS
It is essential for every company to make their image perfect and desire to achieve
customer satisfaction by selling products. i suggest the following recommendationsO
? ;ynduai motors should take appropriate measures for promotional offers
through road shows, auto e-pos and promotion through dealers so that
there product should reach customers and increase brand loyalty.
? :econdly they should increase brand loyalty among potential customers
? They should increase printUads, T.I promotions like commercial
advertisement and through game shows etc
? Dany of the families always look for the price range, which ;yundai
motors has to improve to attract more customers and retain the potential
customers.
? @lso the mileage of ;yundai cars should be improved not only at
highways but also at cities.
? @lso ;yundai motors must attract family more so that it can increase sale
and profit margin.
? The dealers all over India should attained customers properly and make
follow ups regularly to prevents customer loss and increase sales
? The colour choices should be made according to customers choices and
convenience at showrooms.
5"
CONCLUSION
? There is a more preference of small cars observed in metro.
? Dore than 85M are satisfied with the performance of ;yundai cars.
? The ma3or reason for dissatisfaction among the least number of dissatisfied
owners is the maintenance cost which they bear.
? Da3ority of the customers want to have some incentives with the purchase of
car.
? ;yundai is very successful in India but I think their marketing department
could do a little better.
? ;yundai should focus on lower segment cars as there are few cars for that
customer group which is the biggest weekness for ;yundai.
? ;yundai car are comparatively costlier than its competitors thus they should
look for some price cuts.
? ;yundai should concentrate over some promotional activities to attract
potential customers.
58
BIBLIO9RAPHY
B7s:
? 7otler Ahilip, WMar7e%$#' Ma#a'e!e#%K< Aearson /ducation 1
nd
ed.
? 4.:chiffman 0eon, C#s)!er Be,a1$r< Arentice-;all India 8
th
ed.
? 7otler Ahilip L 7evin 0ane 7eller, LMar7e%$#' Ma#a'e!e#%M.
? 5. Aerreault =illiam, .r.L /. Dc!arth .erome < LBas$+ Mar7e%$#' N A
9l&al Ma#a'er$al A""ra+,M.
Wes$%es:
? www.hyundai.com
? www.autoworld.com
? www.mahindra.com
? www.mahindrascorpio.com
5$
APPENDIO
EUESTIONNAIRE
Pers#al De%a$ls
Na!e -MrCMs/PPPPPPPPPPPPPPPPPPPPPPP
Des$'#a%$#PPPPPPPPPPPPPPPPPPPPPPPPPP
O**$+eAddressPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
P,#eNPPPPPPPPPPPPPPPPPPPPPPP
E!a$lPPPPPPPPPPPPPPPPPPPPPPPPPPPP
?Alease give your honest opinions in making this survey a great successB
N%e: Please %$+7 ? $# %,e a""r"r$a%e &=es
G.1 @re you satisfied with the ,uality assurance of R;F95@I S
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
#'
G.1 =hich income groups prefer to buy R;F95@I !@*:S more[
1. 15, '''-2','''
1. 2', '''-25,'''
2. 25, '''->','''
G.2 @re you satisfied with price range of R;F95@IS
1. F/: 1. 6
G.> @re R;F95@I !@*:S 0ooks Datch Four Aersonality[
1. F/: 1. 6
G.5 =hat !olour Fou 0ike offered by R;F95@IS[
1. =;IT/
1. :I0I/*
2. */5 =;I/
>. 80@!7
5. 8/I4/
#1
G.# Is dealer is offering you right price for R;F95@IS[
1. F/: 1. 6
G." Is dealer attending you properly[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
G.8 ;ow do you compare RF69* !@*S with other cars[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
?A0/:/ D/TI6 F69* !@*B -------------------
G.$ @re your family member prefers R;F95@I !@*S for driving[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
#1
G.1' Is RF69* !@* Rgiving you right mileage according your e-pectation[
1. Fes 1. o
G.11 =hat do you find about company marketing strategy while purchasing RF69*
!@*S[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
G.11 Is your family finds RF69* !@*S as a right choice[
1. Fes 1. o
G.12 ;ow do you find R;F95@IS steering working[
1. /-cellent
1. Iery good
2. 4ood
>. @verage
5. Aoor
#2
if o suggest new products that ;F95@I should introduce
aB \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
bB \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
cB\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
#>
doc_617872172.doc