Project Report on Consumer Survey Of Super Luxury Cars

Submitted to: GLS Institute of Business Administration

T.Y. B.B.A Submitted by:

Name of the student

Anar Sheth Dharti Patel Ghanshyam Ramani Harsh Vadgama Hinal Trivedi OmdevSinh Gohil Pooja Pritmani Roshani Patel Sumera Mandsorwala Zarna Patel

Roll No.
177

105 137 199 197 35 133 120 71 125

Page |2

Preface
As part of our curriculum as prescribed by the Gujarat University for the final year in the Bachelors of Business Administration program we are required to prepare and submit a research project on any industry in the country which involves the element of primary data collection. The objective behind preparing this project report is to relate the management theories taught in the classroom to their practical application. The preparation of this project report is based on facts and findings noted during the survey and the information collected from various secondary sources such as the internet, and written and published documents. In spite of our best efforts, there may be omissions and errors for which we take full responsibility. In this research project we have tried to present our analysis and findings regarding a consumer survey on super luxury cars. We feel that this project will provide several key management perspectives towards the behavior pattern that relates to the purchase of a super luxury cars among the common man. With this objective in mind we humbly hope that this shall further extend the knowledge we possess about the automobile industry.

Page |3

Acknowledgement
As we submit this project we would like to acknowledge many of those who have encouraged and facilitated the success of our project. We would like to thank the director of our institute MR. VADIBHAI PATEL for providing us with an opportunity to undertake a research project of this magnitude and for providing us with all the administrative assistance we needed.

We would like to thank proof. VINEETA GANGAL without whose valuable contribution and insights this project would not have been possible, without whose guidance, help and support we would have never been able to conduct our research. We would also like to thank her for the valuable feedback and critical insights, her valuable time and all her assistance.

Our deepest thanks to all the people who directly or indirectly supported us in making this project very object oriented and useful for others.

Page |4

Contents
Preface......................................................................................................................3 Acknowledgement....................................................................................................4 Contents ...................................................................................................................5 RESEARCH METHODOLOGY.............................................................................9 Research methodology.............................................................................................9 The Marketing research process............................................................................9 1.)Define the problem........................................................................................9 2.) Develop the research plan:..........................................................................10 3.) Collect the information...............................................................................11 4.) Analyze the information............................................................................11 5.) Present the findings:...................................................................................11 ...........................................................................................................................13 Introduction............................................................................................................13 Indian Automobile Industry................................................................................13 Introduction to the Industry.................................................................................14 ...........................................................................................................................19 History....................................................................................................................19 Famous Automobile Maker.................................................................................19 Major Player in Indian Automobile Industry......................................................20 India as Manufacturing Hub................................................................................21 Companys having Manufacturing Plant in India............................................22 India as the Export Hub.......................................................................................23 Companys exporting from India .......................................................................25 Imports................................................................................................................25 Page |5

FDI, Mergers, Acquisitions and Joint Ventures..................................................27 ............................................................................................................................27 Industry life cycle...................................................................................................28 Automotive Mission Plan 20062016....................................................................29 Market Research.....................................................................................................31 Segmentation.......................................................................................................31 Based on the price of the Car..............................................................................32 Based on the length of the Car............................................................................33 Based on the User................................................................................................33 Niche Market..........................................................................................................34 Marketing Mix........................................................................................................36 Passion towards super luxury cars is increasing....................................................39 ...........................................................................................................................40 History of Companies.............................................................................................41 BMW-BAVARIAN MOTOR WORK .................................................................41 Logo Design........................................................................................................44 .........................................................................................................................44 AUDI......................................................................................................................46 Meaning:..........................................................................................................46 History.................................................................................................................46 Logo Design.....................................................................................................48 Mercedes-Benz.......................................................................................................50 History.................................................................................................................50 Logo Design........................................................................................................52 Volkswagen............................................................................................................54 History.................................................................................................................54 Logo Design........................................................................................................56 Page |6

SKODA..................................................................................................................58 History.................................................................................................................58 Logo Design........................................................................................................60 ...........................................................................................................................62 Promotion...............................................................................................................63 Road shows:........................................................................................................63 Advertisement:....................................................................................................63 Print ads:..............................................................................................................63 Print ad by BMW...................................................................................................64 Banners and Neon signs:.....................................................................................64 Booklets and Pamphlets:.....................................................................................64 ..........................................................................................................................65 Findings and analysis.............................................................................................66 Q: 3 Gender.........................................................................................................66 ............................................................................................................................66 Q: 6 Do you have a car.?.....................................................................................67 Q: 7 Which segments of car do you currently have?..........................................69 Q: 8 Which category of car segment would you like to switch on next to?.......70 Q: 9 Would you like to buy a super Luxury car?................................................71 Q: 10 Rate the following companies according to your preference:...................72 Q: 11 Why would you go for a specific company?.............................................73 Q: 12 Which of the following features you desire / prefer in a super luxury car? Rank the features on the scale of 1 to 5 in each of the following sub sections with rank 1 as the highest preference..................................................................74 Q: 13 Which of the following sources do you relate to while purchasing a car? .............................................................................................................................80 Q.14 Do you suggest that these companies should start their manufacturing units in India?...............................................................................................................92 Page |7

Q: 15 Are you satisfied with no of showrooms?.................................................97 Q: 16 Are you satisfied with no. of service stations?........................................101 Q: 17 What is the level of your post purchase satisfaction?.............................105 Q: 18 How was your experience regarding after sales service?........................109 Q: 19 How do you dispose your old cars?........................................................113 Q: 20 Do you prefer any other features in upcoming models, please specify:. 114 .........................................................................................................................116 .............................................................................................................................116 SWOT ANALYSIS..............................................................................................117 .........................................................................................................................121 Model Questionnaire............................................................................................121 Conclusion............................................................................................................130 Bibliography.........................................................................................................131

Page |8

RESEARCH METHODOLOGY

Research methodology

The Marketing research process

1.) Define the problem There are three types of problem: Page |9

1. Difficulties while purchasing 2. Post purchase difficulties 3. Opportunities/Difficulties

In this project we have used the unnoticed opportunities problems. The problems like customer satisfaction are very important to know.

Units of analysis The individual or object whose characteristic are to be measured is called as unit of analysis. In this research we have taken unit of analysis as the current users of economic, luxury and super luxury cars.

Space boundaries Space boundary means the area that we are using for the field survey. In this research the scope of the survey is Ahmadabad city.

Characteristic of interest This aspect identifies the focus of the problem. In this project characteristic of the interest is to know the customer satisfaction level of the buyers of super luxury cars.

2.) Develop the research plan: There are different ways to carry out research. There are two type of sources from which data can be received. Primary data Secondary data P a g e | 10

For this project we used primary data in terms of questionnaire to collect the information from the customer. A questionnaire consists of a set of questions presented to respondents. Questionnaire is the most common instrument used to collect primary data. In preparing a questionnaire the researcher carefully chooses the questions, their form, wording and sequence. We used a structured questionnaire to get the information. The secondary data is also used in terms of data collected from various websites and auto magazines. 3.) Collect the information In order to collect information we personally went to the people using super luxury cars and asked them to fill up the questionnaire. We also faced certain problems during the survey. Some respondent were not at home, some refused to co-operate and some gave biased and dishonest answers. Getting the right respondents was critical, but we somehow managed and this project contains reliable and realistic data. 4.) Analyze the information The next step in the process is to extract findings and analyze the collected data. The researcher tabulates the data and develops the frequency distributions. In this process we have used simple frequency distribution method. Frequency gives the number of times that a particular entry occurs. The number of tallies (IIII) gives the number of people who answered the question. The table of such tallies is frequency distribution table. The data presented in this manner is then totaled. For our questions after preparing the frequency table we ranked the options according to their preference that is the one which is most preferable is 1 and the least preferable is 5. In certain questions we found out their percentages and we presented them through bar graphs and pie charts. 5.) Present the findings: P a g e | 11

Lastly, after the tabulation, interpretation and analysis of the data, a proper report containing the finding of the research study and suggestions was prepared. The final report is then submitted to the institute and university.

P a g e | 12

Introduction
Indian Automobile Industry
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. Automobile sector is one of the most dynamic sectors in India. Since, the introduction of liberalization policy and various taxes relieves by the Govt. of India in recent years, it has had a remarkable boom represented by the entry of many foreign players, massive investments with the most up-to-date technologies in the Automobile Industry. Indian automobile industry is currently growing at the pace of around 18 % per annum. Many foreign companies have been entering in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, P a g e | 13

increasing purchasing power, and launch of the latest products. A well-developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. The modern automobile market in India has been considering key issues in the process of growth: Customer care and not just 'service' Domestic as well as multinational investments Searing through cut-throat competition Road safety Anti-pollution norms Coordination with the government to enable advancement Used vehicle trade

Introduction to the Industry

The history of the automobile actually began about 4,000 years ago when the first wheel was used for transportation in India. Several Italians recorded designs for wind-driven vehicles. The first was Guido davigevano in 1335. It was a windmilltype drive to gears and wheels. Vaturio designed a similar vehicle that was also never built. Later Leonardo Da Vinci designed clockwork-driven tricycle with tiller steering and a differential mechanism between the rear wheels. In the early 15th century, the Portuguese arrived in the China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steampowered engine models were developed, but it was another century before a fullsized engine-powered vehicle was created. Catholic priest named Father Ferdinand Verbiest is created to have built a steam-powered vehicle for the Chinese Emperor Chien Lung in about 1679. There P a g e | 14

is no information about the vehicle, only the event. Since James watt didnt invent the steam engine until 1705, we can guess that this was possibly a model vehicle powered by a mechanism like Heros steam engine a spinning wheel with jets on the periphery. Although by the mid-15th century the idea of a self-propelled vehicle had been put into practice with the development of experimental vehicles powered by means of springs, clockworks, and the wins, Nicolas-Joseph Cugnot of France is considered to have built the first true automobile in 1769. Designed by Cugnot and constructed by M.Brezin, it is also the first vehicle to move under its own power for which there is a record. Cugnots three-wheeled steam-powered vehicle carried four persons and was meant to move artillery pieces. It had to top speed of a little more than 3.2 km/h (2mph) and had to stop every 20 minutes to build up a fresh head of steam. Carl Benz and Gottlieb Daimler, both Germans, share the credit of changing the transport habits of the world, for their efforts laid the foundation of the great motor industry as we know it today. First, Carl Benz inverted the petrol engine in 1885 and a year later Daimler made a car driven by motor of his own design and the rest is history. Daimlers engine proved to be a great success mainly because of its less weight that could deliver 1000rpm and needed only small light vehicle to carry them. France too had joined the motoring scenario by 1890 when two Frenchmen Panhard and Levassor began producing vehicles powered by Daimler engine, and Daimler himself, possessed by the automobile spirit, went on adding new features to his engine. He built the first V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest from of sparking plug. The engines were positioned under the seat in most of the Daimler as well as Benz cars. However, the French due of Panhard and Levassor made a revolutionary contribution when they mounted the engine ion the front of the car under a bonnet.

P a g e | 15

Charles Duryea built a motor carriage in America with petrol engine in 1892, followed by Elwood Haynes in 1894, thus paving the way for motorcars in that country. For many years after the introduction of automobiles, three kinds of power sources were in common use: steam engines, gasoline or petrol engine, and electric motors. In 1900, over 2,300 automobiles were registered in New York, Boston, Massachusetts, and Chicago. Of these, 1,170 were stem cars, 800 were electric cars and only 400 were gasoline cars. In ten years from the invention of the petrol engine, the motorcar had evolved itself into amazing designs and shapes. By 1898, there were 50 automobile-manufacturing companies in the united state, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the manufacturing of automobiles with his assembly-line style of production and brought out the Model T, a car that was inexpensive, versatile and easy to maintain. The introduction of the Model T transformed the automobile from a playing of the rich to an item that even people of modest income could afford; by the late 1920s the car was commonplace in modern industrial nations.

Herbert Austin and William Morris, two different carmakers, introduced mass production methods of assembly in the UK, thus paving the way for a revolution in the automobile industry. Austin seven was the worlds first practical four-setter baby car which brought the pleasures of motoring to many thousands of the people who could not buy a larger, more expensive car. Even the bull-nose Morris with front mounted engine became the wellloved model and one of the most popular cars in the 1920s. Automobile manufacturing in the 1930s and 1940s refind and improved on the principles of Ford and other pioneers. Cars were generally large, and many were still extremely expensive and luxurious; many of the most collectible cars date from this time. The increased affluence of the United States after World War P a g e | 16

II led to the development of large, petrol consuming vehicles, while most companies in Europe made smaller, more fuel-effecting cars. Since the mid1970s, the rising cost of fuel has increased the demand for these smaller cars, many of which have been produced in Japan as well as in Europe and the United States. The history of motor vehicles has surely been a well-traversed one. The automobile, as it progressed, was a product of many hands, of revolutionary concepts, and of simple, almost unnoticed upgrading. In the end, the one who received the most for these challenges changes was the motorist, whose interest, money, and enthusiasm have forced the auto-moguls to upgrade, perfect, and add to previous achievements in order to stay in the competition. In terms of the lives of average people, there is little doubt that the automobile id the most revolution since the wheel. The basic premise of the automobile is simple; choose a wheeled vehicle from the many types typically pulled by horse or oxen add a motor and create a self-propelled, personal transportation vehicle. The earliest ancestor of the modern automobile is probably the Fardier, a three-wheeled, steam-powered, 2.3-mph vehicle built in 1771 by Nicolas Joseph Cugnot for the French minister of war. This cumbersome machine was never put into production because it was much slower and harder to operate than a horsedrawn vehicle. Amedee Bollee, also a Frenchman, built an improved 12-passenger steam car in 1873, but the steam engine proved impractical for a machine that was intended to challenge the speed of a horse-and-buggy. The invention of the practical automobile had to await the invention of a workable internal combustion engine. The milestone vehicles were built in Germany in 1889 by Gottlieb Daimler and Wilhelm Maybach. Powered by a 1.5hp, two cylinder gasoline engine, it had a four-speed transmission and traveled at 10mph. Another German, Karl Benz, also built a gasoline-powered car the same year. The gasoline-powered automobile, or

P a g e | 17

motor car, reminded largely a curiosity for the rest of the nineteenth century, with only a handful being manufactured in Europe and the United States. The first automobile to be produced in quantity was the 1901 Curved Dash Oldsmobile, which was built in the United States by ransom E.Olds. Modern automobile mass production and its use of the modern industrial assembly line is credited to Henry Ford of Detroit, Michigan, who had built his first gasolinepowered car in 1896. Ford began producing his Model T in 1908, when it was discontinued; over 18 million had rolled off the assembly line.

P a g e | 18

History
Famous Automobile Maker
Nicolas August Otto: Nicolas August Otto invented the gas motor engine in 1876 Gottlieb Daimler: In 1885, Gottlieb Daimler invented a gas engine that allowed for a revolution in car design. Karl Benz: Karl Benz was the German mechanical engineer who designed and in 1885 built the worlds first practical automobile to be powered by an internalcombustion engine. Franz Josef Popp: Founder of BMW in the year 1916. Its head quarter is in Germany.

P a g e | 19

John Lambert: Americas first gasoline-powered automobile was the 1891 Lambert car invented by John W. Lambert. Emil Skoda: Founder of Skoda. Duryea Brothers: They founded Americas first company to manufacture and sell gasoline powered vehicles. August Horch: Founder of Audi. It was Founded on July 16th 1909 in Germany. Its head quarters are located in Germany. Rudolf Diesel: Rudolf Diesel invented the diesel-fuel internal com bustion engine. Ferdinand Porsche: Founder of Volkswagen. The company was founded on May 28 1937 in Germany. Henry Ford: Henry Ford improved the assembly line for automobile manufacturing (Model-T), invented a transmission mechanism, and popularized the gas powered automobile. Charles Franklin Kettering: Charles invented the first automobile electrical ignition system and the first practical engine driven generator.

Major Player in Indian Automobile Industry

1. Maruti Suzuki 2. Opel 3. Mahindra & Mahindra 4. Tata 5. Fiat P a g e | 20

6. Toyota 7. Honda 8. Mitsubishi 9. Ford 10.Chevrolet 11.Hyundai 12.Mercedes 13.Skoda 14.Hindustan motors

India as Manufacturing Hub

India with its rapidly growing middle class, market-oriented stable economy, availability of trained manpower at competitive cost, fairly well-developed credit P a g e | 21

and financing facilities and local availability of almost all the raw materials at a competitive cost has emerged as one of the favorite investment destinations for the automotive manufacturers. Japanese auto major, Nissan Motor Co, has identified India as one of the five lowcost countries to manufacture its new generation compact cars, including the Micro. Hyundai has made India its global hub for manufacturing small cars. It will invest US$ 1 billion in its second plant in Chennai by 2013. In addition, it is also investing US$ 40 million in its R&D facility in Hyderabad. General Motors has so far invested about US$ 1 billion into its Indian operations. It has already started production of its small car, Spark in its new Talegaon factory in Maharashtra, which has been set up with an investment of US$ 300 million. Mercedes-Benz will invest about US$ 64.21 million in its plant at Chakan near Pune, which would begin operations in February-March next year. The plant would have a production capacity of 2,500 trucks and buses and 10,000 cars over two shifts per year. Renault has entered into 50:50 joint ventures with Nissan Motors and together they have set up a manufacturing facility near Chennai at a cost of US$ 901.35 million to deliver 400,000 cars annually. Skoda Auto plans to make India its regional manufacturing hub. It will start producing cars in India by 2010 with a manufacturing target of 50,000 units. Besides the domestic market, these will also be exported to neighboring countries like Nepal, Sri Lanka, Burma and Bangladesh.

Companys having Manufacturing Plant in India

Company Amount of Investment P a g e | 22

Nissan Motors Hyundai General Motors Mercedes-Benz Renault Skoda

US$ 982.98 million US$ 1.40 billion US$ 1 billion US$ 64.21 million US$ 901.35 million US$ 912million

India as the Export Hub

The Indian automotive industry has found a ready and accepting global market because of the introduction of new vehicle and components with improved quality P a g e | 23

and performance. The export value of automotive exports in 1997-98 is Re. 30,201,228,000 as compared to Rs. 4,635,167,000. The automotive industry has maintained a steady in the total exports of the country. It had a share of 2.7% in 1997-98, 2.2% in 1998-99 and 2.8% in 1999-00. Transport equipment is the second fastest growing export commodity after cashew huts, according to the Indian Economic Survey, 1999-2000. With a weight of 2.2 in the total export of the country, transport equipment has grown by 54.8% from $443.2 million in 1998-99 to $685.9 million in 1999-00. Although the Indian auto exports have had no presence in the global export market of the 1960s and 1970s, it has maintained a steady share of 0.1-0.2% in world road vehicle exports since the 1980s. Globalization and foreign collaboration tie-ups have also played a role in the export growth. Export of all kinds of automotive vehicles as well as auto components have been increasing over the last decade, as can be seen from the graph. In terms of manufacturing excellence and availability of low-cost quality components as well as a fast expanding domestic market, India is all set to become the global export hub of the automobile industry. The exports markets have helped carmakers such as Maruti Suzuki and Hyundai Motor India post greater sales overseas than in the domestic market. According to the figures released by SIAM, the period from AprilOctober 2008 saw automobile exports registering a growth of 29.36 per cent. As the world moves away from big cars to smaller makes, owing to high fuel costs and general recessionary trends, the small car advantage presents a huge business opportunity for car makers in India. The Indian car market accounts for 71 per cent of small cars, while in China it accounts for 33 per cent. Home-grown auto major, Maruti Suzuki, the country's largest car maker, currently exports Alto, M800, Omni, Wagon R and Zen Estilo to non-European markets such as Chile, UAE, Algeria and East Africa. The Japanese car maker, which exported 53,000 units in 200708, will up it to 200,000 units by 2010.

P a g e | 24

Korean car maker Hyundai exports 40 per cent of its small car production, primarily 'i10' and 'Santro', which sells as 'Autos' in 97 countries across the world. The sales of its newly-launched compact car i10 touched 106,749 units in the overseas markets within seven months of being launched in December 2007. As a part of its strategy to make India an export hub for compact cars, Hyundai Motors has raised production to 0.6 million units per annum. The latest addition to the list is Nissan, which plans to buy 50,000 A-Star compact cars from its rival Maruti Suzuki and export to markets in Europe as well as make small cars in India and start exporting it to Latin American and African countries by 2010. The car makers in the markets like Latin America and Europe too have ramped up sourcing orders of small cars from Indian companies

Companys exporting from India

Company Nissan Motors Hyundai General Motors Mercedes-Benz Renault Skoda Number of Units 0 243,931 0 0 0 0

Imports

P a g e | 25

Transport equipment including auto parts and vehicles has long been a part of the annual imports, primarily because of their superior technology. Through the absolute value of transport equipment imports have increased intermittently over the decades, their share in the total imports valued Rs. 72 corers or US $ 151 million in 1960-61, a share of 6.4%. This share has fallen to 1.4% for the year 1999-2000, through the absolute value has risen to Rs. 2571 corers or US $ 611 million. In spite of the fetish cars seem to enjoy, import of auto components far outnumbers the import of vehicles. In 1997-98 while Rs. 17 billion worth of auto components were imported, in comparison only Rs. 1.7 billion worth of vehicles or engines were imported.

P a g e | 26

FDI, Mergers, Acquisitions and Joint Ventures

In sync with the dynamics of an open market, mergers and acquisitions and joint ventures have continued to be the driving force in the Indian automobile industry. Leading Japanese, Korean, European, French, Italian and American automobile companies have either set up their own manufacturing base in India or have tied up with Indian automotive firms to roll out new products from Indian market. The list includes Toyota, Nissan, Renault, Fiat, Honda, Kawasaki, Cummins and many more. On the other hand, Indian companies have also been bullish in acquiring foreign automobile companies to reinforce their presence in the global market. The biggest acquisition in the first half of 2008 has been the Tata Motors' acquisition of Jaguar-Land Rover from US automobile firm for US$ 2.3 billion. During this period, another auto major, Mahindra & Mahindra has acquired three Italian companies - G R Grafica Ricerca, Metalcastello and Engines Engineering. Another event is Daimler AG's acquisition of 26 per cent stake in Sutlej Motors. The prominent private equity deals in the first half of the year include Golbot Holding's (a Goldman Sach arm) 3.68 per cent stake in M&M for US$ 175 million, AIG Global Investment's US$ 20 million in Unipart, AIG's 14.5 per cent in Kinetic Engineering and Phi Advisors' 10 per cent in M&M's subsidiary First Choice.

P a g e | 27

Industry life cycle

Industry life cycle model identifies five sequential stages in the evolution of an industry that leads to five distinct kinds of industry environment: Embryonic Growth Shakeout Mature Decline. Luxury Car Market is in the growth stage as shown in the figure.

P a g e | 28

Automotive Mission Plan 20062016

The vision of the Automotive Mission Plan (AMP) 20062016 is to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion accounting for more than 10 per cent of the GDP and providing additional employment to 25 million people by 2016. As per the AMP, it is estimated that the total turnover of the automotive industry in India would be in the order of US$ 122 billion159 billion in 2016. It is expected that in real terms, India would continue to enjoy its eminent position of being the largest tractor and three-wheeler manufacturers in the world and the P a g e | 29

worlds second largest two-wheeler manufacturer. By 2016, India would emerge as the worlds seventh largest car producer (as compared to the eleventh largest currently) and retain the fourth largest position in world truck manufacturing sector. Further, by 2016, the automotive sector would double its contribution to the countrys GDP from current levels of 5 per cent to 10 per cent.

P a g e | 30

Market Research
Market research often refers to either primary or secondary research. Secondary research involves a company using information compiled from various sources, which is about a new or existing product. Primary market research involves qualitative research (such as focus groups or one-on-one interviews) and quantitative research (such as surveys) as well as field tests or observations conducted for or tailored specifically to that product. Primary research, which is also called field research or original research, is useful for finding new information and getting customers' views on products

Segmentation
P a g e | 31

A market segment consists of a group of customers who share a similar set of wants The marketer does not create the segments; the marketers task is to identify the segments and decide which one(s) to target. Segment marketing offers several benefits over mass marketing. The company can create a more fine-tuned product or service offering and price it appropriately for the target segment. The company can more easily select the best distribution and communication channels, and it will also have a clearer picture of its competitors, which are the companies going after the same segment. In the context of automotive sector, we would be classifying it in the following ways-: BASED ON THE PRICE OF THE CAR BASED ON THE LENGTH OF THE CAR BASED ON THE USER SEGMENT

Based on the price of the Car

On the basis of price of car we can segment the car in following ways-: Economy Segment The economy segment of car ranges up to Rs. 2.5 lacs. The products in this segment are Maruti 800, Alto and the newly launched product of TATA motors i.e. NANO.

Mid- Size Segment The mid-size segment of car ranges from 2.5 lacs to 4.5 lacs. It includes the products like Hyundai santro, Maruti Zen, Tata Indica etc. P a g e | 32

Luxury car segment The luxury segment of car ranges from 4.5 lacs to 10 lacs. It includes the products like Honda city, Hyundai Verna, Mahindra Scorpio etc.

Super luxury car segment The super luxury segment of car ranges above 10 lacs. This segment satisfies the elite class of the society. It includes the products like Skoda Laura, Honda Accord, BMW, Mercedes, and Audi etc.

Based on the length of the Car

A segment- Cars that are less than 3.5 meters long (800, Omni) B segment- Cars between 3.5 meters to 4 meters long (Zen, SX4, and Santro) C Segment- Cars between 4 meters to 4.5 meters long (Verna, Honda city, ford fiesta) D segment- Cars that are more than 4.5 meters long (Mercedes, Sonata, Accord, Skoda)

Based on the User

Segmentation of automotive sector is also based on the user of the products. P a g e | 33

Individual Buyers Taxi operators Government /non-government institutions

Niche Market
A niche is a more narrowly defined group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment into sub segments.

BMW is targeting high class people but it is mainly targeting the young people who earn a lot of money up to the age of 35-40 years and want to have a stylish saloon.

P a g e | 34

Mercedes is also targeting high class people but it is mainly targeting the CEOs, chairmen, etc of age group of 50-60 years.

Audi mainly targets Youths between age group between 25-40, making car available to them at a bit cheaper cost compared to other car manufactures in this segment.

Skoda targets all aged people looking for cheaper cars.

Volkawagen believes in SAFETY first. Their targeted market is of people looking for best engineering with safety, mainly mid-aged people.

P a g e | 35

Marketing Mix
A Marketing mix is the division of groups to make a particular product by pricing, product, branding, place, and quality. Although some Day marketers have added other P's, such as Personal and packaging and physical evidence, the fundamentals of marketing typically identifies the four P's of the marketing mix as

P a g e | 36

referring to:

"Marketing Mix" is set of correlated tools that work together to achieve company's objectives, they are: product, price, promotion, and place. The set of controllable tactical marketing tools, product, price, place and promotion - that the firm blends to produce the response it wants in the target market:

Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism & the hotel industry. Typical examples of a mass produced tangible object are the motor cars and the disposable razor. A P a g e | 37

less obvious but ubiquitous mass produced service is a computer operating system. Price The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements advertising, Public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations

P a g e | 38

Passion towards super luxury cars is increasing

Increasing motor sport activities in India like car and bike rallies (Raid the Himalayas), Formula 1s rising exposure and possibilities for holding the event in India, auto expos, International product launches in the country are creating an atmosphere for experiencing the vehicles not just use them for transportation. It makes people think about experiencing the same feelings of racers not just by driving them once but also forever by owning them. More number of drivers being recognized on world arena, Indian teams are participating in world racing events, these all are the facts in increasing passion level of Indian people for speed, power, and elegancy. Paisa and Passion are the two most important factors in buying these expensive marques. It has been observed that every developed automobile market has a history of great motor sport events. Like NASCAR in U.S., Europe is without doubt the heaven for the racers and this increasing exposure of these events in developing countries like Russia, China, and Brazil etc. Formula helped a lot in developing the market for these power SUMIT pumped vehicles with elegance. Study says that prospective buyers do watch a lot of motor sport events and that creates the passion in them also. Young population, money and passion certainly make a deadly combo. Young age gives the aspirations, money gives the affordability and passion gives the push for buying an ultra-luxury car.

P a g e | 39

P a g e | 40

History of Companies
We have selected the following 5 companies for our research on consumer survey of super luxury cars: 1. BMW 2. AUDI 3. MERCEDES 4. VOLKSWAGEN 5. SKODA

BMW-BAVARIAN MOTOR WORK

Tag Line -The ultimate driving machine

P a g e | 41

Headquarters - Munich, Germany

After World War I, BMW was forced to cease aircraft (engine) production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 1928-29. The circular blue and white BMW logo or roundel is portrayed by BMW as the movement of an aircraft propeller, to signify the white blades cutting through the blue sky an interpretation that BMW adopted for convenience in 1929, twelve years after the roundel was created. The emblem evolved from the circular Rapp Motorenwerke company logo, from which the BMW Company grew, combined with the white and blue colors of the flag of Bavaria, reversed to produce the BMW roundel. BMWs first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance. With German rearmament in the 1930s, the company again began producing aircraft engines for the Luftwaffe. Among its successful WWII engine designs were the BMW 132 and BMW 801 air-cooled radial engines, and the pioneering BMW 003 axial-flow turbojet, which powered the tiny, 1944-45-era jet-powered emergency fighter, the Heinkel He 162 Salamander. The BMW 003 jet engine was tested in the A-1b P a g e | 42

version of the worlds first jet fighter, the Messerschmitt Me 262, but BMW engines failed on takeoff, a major setback for the jet fighter program until successful testing with Junkers engines. By 1959 the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by some of Germanys ex-aircraft manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian IsoIsetta were bought, the tiny cars themselves were to be powered by a modified form of BMWs own motorcycle engine. This was moderately successful and helped the company get back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float. In 1992, BMW acquired a large stake in Californian-based industrial design studio DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought the British Rover Group (which at the time consisted of the Rover, Land Rover and MG brands as well as the rights to defunct brands including Austin and Morris), and owned it for six years. By 2000, Rover was making huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new MINI, which was launched in 2001. Chief designer Chris Bangle announced his departure from BMW after serving on the design team for nearly seventeen years. He will be replaced by Adrian van Hooydonk, Bangles former right hand man. Bangle was famously (or infamously) known for his radical designs such as the 2002 7-Series and the 2002 Z4. In July 2007, the production rights for Husqvarna Motorcycles were purchased by BMW for a reported 93 million Euros. BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, have remained in place at its present location.

P a g e | 43

Logo Design
The logo used by BMW is representative and derived from the Bavarian engine components that first made up the company structure in 1917. It is also in the Bavarian national colors of black, white and blue. The black ring and the internal and external enclosing rings were used to represent the previous company Bayerische Flugzeug-Werke (BFW). BMW resulted from this business. While many think that the propeller was in fact designed to represent a rotary propeller which was developed in 1929, in actuality this interpretation is only promoted for marketing purposes and has no factual basis. The more recent iterations of the BMW logo talk little of the propeller and more about the vehicle itself in an outdoor environment, as is outlined by Publicity and Advertising Manager Wilhelm Farrenkopf in the BMW work magazine in 1942, where he talked about the shining disk, shades of the engines, two silver divides and bright blue gleams that represent the sky.

P a g e | 44

3 Series Sedan Series Sedan 5 6 Series Sedan

7 Series Sedan

X3 SUV

X5 SUV

X6 SUV

Z4 Roadster

M6 Coupe P a g e | 45

AUDI

Tag line:Vorsprung durch technik

Meaning:
Progress through technology

History
Audi's history is one of the most many-faceted stories ever told in the history of the automobile in general. The Audi emblem with its four rings identifies one of Germany's oldest-established automobile manufacturers. It symbolizes the amalgamation in 1932 of four previously independent motor-vehicle manufacturers: Audi, DKW, Horch and Wanderer. These companies form the roots of what is today AUDI AG The Audi badge the 'Four Rings' is the emblem of one of the oldest car manufacturers in Germany. On 14 November 1899, August Horch (1868 - 1951) established the company A. Horch & Cie. in the Ehrenfeld district of Cologne. Here he developed his first car, which was completed at the beginning of 1901. The company moved to Reichenbach in Saxony in March 1902 and converted to a share-issuing company two years later, which involved a further change in location. On 10 May 1904, A. Horch & Cie. Motorwagen-Werke AG was established in Zwickau.

P a g e | 46

The first Horch car took to the road in 1901. It had a horizontal engine which developed about 4-5 hp. An additional small piston in the engine was designed to absorb the vibrations of the crankshaft. August Horch referred to this as his 'impact-free' engine. Another new feature was the alloy crankcase, a pioneering achievement in car manufacturing.The company traces its origins back to 1899 and August Horch. The first Horch automobile was produced in 1901 in Zwickau. In 1909, Horch was forced out of the company he had founded. He then started a new company in Zwickau and continued using the Horch brand His former partners sued him for trademark infringement and a Iranian court determined that the Horch brand belonged to his former company. August Horch was barred from using his own family name in his new car business, so he called a meeting at the apartment of Franz Fikentscher to come up with a new name for his company. During this meeting Franz's son was quietly studying Latin in a corner of the room. Several times he looked like he was on the verge of saying something but would just swallow his words and continue working, until he finally blurted out, "Father audiatur et altera pars... wouldn't it be a good idea to call it audi instead of horch?". "Horch!" in German means "Hark!" or "hear", which is "Audi" in Latin (compare audible). The idea was enthusiastically accepted by everyone attending the meeting. It is sometimes incorrectly said that AUDI is a acronym which stands for "Auto Union Deutschland Ingolstadt", but this is merely a clever backronym and not the true origin of the company name. Audi started with a 2,612 cc (2.6 liter) four cylinder model[clarification needed] followed by a 3564 cc (3.6 L) model, as well as 4680 cc (4.7 L) and 5720 cc (5.7L) models. These cars were successful even in sporting events. The first six cylinder model,[clarification needed] 4655 cc (4.7 L) appeared in 1924. August Horch left the Audi Company in 1920 for a high position at the ministry of transport, but he was still involved with Audi as a member of the board of trustees. In September 1921, Audi became the first German car manufacturer to present a production car, the Audi Type K, with left-handed drive.[6] Left-hand drive spread and established dominance during the 1920s because it provided a better view of oncoming traffic, making overtaking maneuvers safer

P a g e | 47

Logo Design
It is believed that the use of the four rings logo is most likely to generate back to the date of Claus Detlof of Oertzen, who described the idea as being something related to Olympia and the Olympiad which fuses the coming together of groups. This is in line with the coming together of the four Audi companies - AUDI, DKW, Horch and Wanderer.

Audi Logo actually stemmed from four separate motor corporations forming an alliance. The first Audi logo was the four ring device with one original motor corp logos positioned inside each ring.

P a g e | 48

A4 Sedan

A6 Sedan

A8 Sedan

Q5 SUV

Q7 SUV

TT Coupe

P a g e | 49

R8 Sport

Mercedes-Benz

History
It is widely accepted today that Karl Benz and Gottlieb Daimler were the first to produce a "horseless carriage". Karl Benz was born in 1844, a descendant of blacksmiths and son of a German engine driver. Gottlieb Daimler, 10 years younger than Benz, became "chief engineer" in a locomotives works factory three years after Benz had left.This was the closest the two ever came to meeting. Daimler's very first car was a wooden motorcycle that could only reach 12km/h, while the first Benz car of 1886 could only reach 15 km/h (this some six years after he had first run his new engine, on new year's eve, 1879). And it is this car that is widely considered to be the first ever practical, petrol driven motor car, which coincidentally incorporated Benz's own invention, the carburettor. His wife and children watched as he tried it out for the first time on a cinder track next to his workshop. The car ran right into the wall and ended up somewhat bent and broken. Benz admitted it was tricky to steer! "I ventured a ride on the road," he said "only after I had somehow managed to steer properly."

P a g e | 50

When he did succeed in driving his machine non-stop round the streets of the town, it was the most exciting day of his life. But unfortunately, Benz was a man who refused to move with the times. He would not see that his cars were no more than stepping stones towards better and improved vehicles. His early cars sold well, but he could not bring himself to alter his basic design. Buyers turned to other makes, forcing Benz to curtail production. In 1900 he built over 600; in 1903, only 170. His car even became a joke among designers and car owners. No one doubts that Karl Benz was a gifted engineer, but his stubborn and obstinate nature nearly ruined him. The first Mercedes was the result of a discussion by three men, an Austrian diplomat, Emile Jellinek, who was more interested in cars than diplomacy; a designer, Wilhelm Maybach; and Paul Daimler, son of the famous Gottlieb Daimler. Jellinek was enthusiastic about the dawn of motoring age and believed that the motor car was of major importance for the future. In 1897 he had already made a special journey to Cannstatt where he visited the Daimler factory and brought back a car to the French Riviera, causing quite a stir. At the meeting with Maybach and Paul Daimler, Jellinek outlined what he had in mind and agreed that, if Maybach would design a car along those lines, he would be prepared to take delivery of the companys entire production. Maybach set to work on the new design and, when the first car appeared at Nice in 1901, it amazed everybody with its fine performance. Overnight it made every other car seem five years out of date. The ideas of these three men revolutionised motor car design the world over. Jellinek decided to call the new car "Mercedes", a Spanish Christian name meaning "grace", and a name he obviously quite liked, as he had chosen for his daughter. Jellinek was also acutely aware that the French were prejudiced against any car with a German name, and so Mercedes was a far better fit.

P a g e | 51

Since Jellinek was a big figure in society there and enjoyed good relations with the international financial world, it was not long before prospective buyers were taking an interest in the Daimler cars

Logo Design
The Mercedes trademark was registered in 1902 - after Karl Daimler had died in 1900 at the age of 66. His two sons then managed the company - and they remembered that their father had only once sent a postcard to their mother which had a star marked on the house where he was living at the time, a place called Deutz. Made the comment on the card that "eventually this star would rise out and shine over his work". In June 1909, the then chairman applied for a trademark of both a three pointed star and four pointed star. Both trademarks were granted, but only one was ever used. This trademark was soon placed on the form of the car as a radiator emblem. This logo uses the symbol of points that head out in three different directions, which is used to represent the concept of Gottfied Daimler, which manufactures a range of transport movers that work effectively across air, water and land. The color silver is very typical of the Mercedes Benz brand and dates back to its involvement in the very first Grand Prix, which ran at Nuerburgring in 1934. When one of the cars exceeded its eligible weight for the race in the pre-race checks, the officials spent the night polishing off the paint so that the car was back to its raw silver color. The following day as the car ran around the track it shone a beautiful silver color and was termed the "silver arrow."

P a g e | 52

C-Class Saloon

CL-Class Coupe

CLS-Class Coupe

E-Class Saloon M-Class SUV S-Class Saloon

SL-Class Roadster

SLK-Class Roadster

P a g e | 53

Volkswagen

TAGLINE Das Auto (German) meaning The Car

History
Volkswagen is a German auto maker that is very well known to many people throughout the world. One of the vehicles that helped make them a household name is the Beetle. It may not come as a surprise to many that the Volkswagen got started in part by Adolf Hitler. Though he did not drive, he asked Ferdinand Porsche to create a vehicle that would be suitable for the regular everyday working man. Porsche agreed to do it and within a few years the Volkswagen Beetle made its debut. A new factory was built for Volkswagen soon after in 1938. The war began soon after this and the factory never did produce many cars before it got underway. Only one vehicle was released and it was given to Hitler for his birthday. In 1945 the factory was actually bombed by the Americans. It was then given to the British to control. The British decided that they would use the factory for their military vehicles. Army officer Major Hirst was in charge. It is because of him that Volkswagen survived to become a business once again. After painting one of the factorys cars green and sending it to Britain, a response came requesting 20,000 more. P a g e | 54

When the year 1946 ended the factory was pumping out 1000 cars per month. However, the building became damaged and exposed to the elements so production soon came to a gradual halt. The factory was offered to other existing auto manufacturers at the time though nobody wished to claim it. A funny fact too many is that the owner of the Rootes car corporation told Hirst that he would be a fool to continue trying to make a car as ugly and noisy as the Beetle. Yet today the Beetle remains and Rootes has been finished for many years. Volkswagen did attempt to make other vehicles back in the 1960s. They made a vehicle called the Thing which was reminiscent of a war vehicle. It was large and rather unattractive. It was only sold for two years in the United States before being discontinued. Volkswagen spent a lot of time and money looking at ways to improve the Beetle. In 1973 Volkswagen was getting into deep financial trouble and was facing the possibility of having to discontinue the Beetle indefinitely. It wasnt long after that Volkswagen released both the Passat and the Rabbit. Both cars had a substantial amount of success and have continued to be popular vehicles in the modern day. The Volkswagen Golf was sold as the Rabbit in the U.S. during the 1980s but was later changed back to Golf. It is now once again called the Rabbit. Volkswagen has continued to reclaim success with cars like the Jetta and the new Beetle that has been given a modern twist on an old classic. Volkswagen is now looking at making some earth friendly vehicles. They have teamed up with Sanyo to find a way to create a hybrid vehicle battery system. Volkswagen has made its way through history to be a successful competitor that is still standing.

P a g e | 55

Logo Design

Volkswagen is a car producer based in Germany. It forms the substance of Volkswagen Group, which is the world's fourth largest automobile producer after Toyota, GM and Ford. The origins of the company date back to 1930s Nazi Germany. Long before Hitler was elected to power in Germany, he was creating schemes to massproduce an affordable car. Hitler called the new vehicle the "KdF-Wagen", which literally meant "strength through joy - car", after the Nazi-led KdF movement that was supposed to look after the working people. Ferdinand Porsche disliked the name KdF-Wagen (he preferred Volkswagen, the name under which the car had been produced). "Volkswagen" signifies "people's car" in German, in which it is pronounced ['folksvagan]. Volkswagen has one of the most simple and instantly recognizable logos in the world, which has seen subtle changes through the years. It's pretty obvious what the Volkswagen logo is (a V over a W in a blue background, surrounded by a circle). The logo was the result of an office competition of which the winner was Franz Reimspiess (the engineer who perfected the engine for the Beetle in the 1930's). The copyright holder of the internationally-famous VW logo is not to be Nikolai Borg, a graphic designer who sued the company for allegedly failing to recognize his work.

P a g e | 56

Polo

Beetle

Jetta

Passat

Touareg Phaeton

P a g e | 57

SKODA

TAGLINE -

Simply Clever

History
The origins of Skoda go back to the early 1890s where, like many longestablished car manufacturers, the company started out manufacturing bicycles. It was 1894, and 26-year old Vclav Klement, who was a bookseller in Mlad Boleslav, in today's Czech Republic, which was then part of Austria-Hungary, was unable to obtain spare parts to repair his German bicycle. Klement returned his bicycle to the manufacturers, Seidel and Naumann, with a letter, in Czech, asking for them to carry out repairs, only to receive a reply, in German, stating: "If you would like an answer to your inquiry, you should try writing in a language we can understand". A disgusted Klement, despite not having technical experience, decided to start a bicycle repair shop, which he and Vclav Laurin opened in 1895 in Mlad Boleslav. Before going into business partnership with Klement, Laurin was an already established bicycle manufacturer from the nearby town of Turnov. In 1898, after moving to their newly-built factory, the pair bought a Werner "motorcyclette", which was produced by French manufacturer Werner Brothers. Laurin & Klement's first motorcyclette (which was powered by an engine mounted on the handlebars driving the front wheels) proved dangerous and unreliable an early incident on it cost Laurin a front tooth. To design a safer machine with its structure around the engine, the pair wrote to German ignition specialist Robert Bosch for advice on a different electromagnetic system. The pair's new Slavia motorcycle made its debut in 1899. P a g e | 58

In 1900, when the company had a workforce of 32, Slavia exports began, with 150 machines shipped to London for the Hewtson firm. Shortly afterwards, the press credited them as makers of the first motorcycle. The first model, Voiturette A, was a success and the company was established both within Austria-Hungary and internationally. By 1905, automobiles were being produced by the firm. During the First World War koda was engaged in war production. After WWI it began producing trucks, but in 1924, after running into problems and being hit by a fire, the company sought a partner. As a result, it merged with koda Works, the biggest industrial enterprise in Czechoslovakia. Most later production was under the koda name. After a decline during the economic depression, koda was again successful with models such as the Popular in the late 1930s. During the World War II Occupation of Czechoslovakia, the koda works was turned into part of Hermann Gring Werke serving the German World War II effort. In 2006, koda presented its brand new model Roomster, which is a small MPV with a unique design, which reflects future trends. At the end of December 2006, koda also released the first official pictures of the new Fabia, a model that would replace the Fabia in 2007. Later in 2008, koda released the first pictures of the facelifted Octavia. Featuring new headlights, front grille/bumper, as well as a slightly restyled rear and interior. The revised car also features a new selection of engines including the 1.4 TFSI and new common rail diesel engines. A new concept car was presented at the Paris Auto Show in September 2006. The concept was called Joyster, and is a three-door compact car intended especially for young people. Volkswagen AG's Australian arm, Volkswagen Group Australia (VGA), recently announced that they would be returning koda to the Australian car market in October, 2007. Before that date, koda vehicles were last sold in Australia in 1983. Currently the Octavia, Roomster and Superb are available in Australia. VGA have stated they will only bring the Fabia onto the Australian market if they are able to price it below the Volkswagen Polo. It is rumoured that a version from the Brazilian Volkswagen Gol NF will be a new base model for koda in Europe.

P a g e | 59

Logo Design

Although the koda logo is viewed as one of the most original and stylistically clean manufacturing company trademarks in the world, the author is not yet known. The black and green logo, which has been used since 1994, gives the koda brand a greater degree of originality black symbolizes the hundred-year tradition, green signalises environmental production.

P a g e | 60

Superb

Laura

Octavia

Fabia

P a g e | 61

P a g e | 62

Promotion
Activities done in order to increase the sales of a product or service; a set of advertisements for a particular product or service The super luxury car companies use various techniques to promote their products like. Road shows Advertisement Print ads Banners and Neon sings Booklets n pamphlets

Road shows:
The company plans the road shows to display their models in order to create awareness amongst the customers.

Advertisement:
They advertise their products through newspapers, television and internet. Advertisements are shown on leading television channels, major music and sports channels. These promotions reach out to the youth very effectively.

Print ads:
Daily advertisements in leading newspapers and magazines are used to promote the product. Leaflets at the initial stage are distributed.

P a g e | 63

Print ad by BMW

Banners and Neon signs:

Hoardings, banners, neon signs are displayed at clubs, discs, outside theatres, highways and shops to promote its brand car.

Booklets and Pamphlets:

Booklets are kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets provide information about its company; the products offered which suits the customers need accordingly.

P a g e | 64

P a g e | 65

Findings and analysis

Q: 3 Gender
MALE FEMALE TOTAL 209 95 304 69% 31% 100%

ANALYSIS: Considering the sex ratio, males dominate the area of possessing super luxury cars. Out of 209 males 92 possess super luxury cars and out of 95 females 37 possess super luxury cars P a g e | 66

Q: 6 Do you have a car.?

Yes No Total 294 10 304 97% 3% 100%

P a g e | 67

Analysis:
Out of the total people surveyed 96.71% have cars and 3.29% do not have cars. P a g e | 68

Q: 7 Which segments of car do you currently have?

Economy Luxury Super luxury Total

53 122 129 304

18% 40% 42% 100%

P a g e | 69

Analysis:
In the above question 17.43% have economy segment of cars. 40.13% have luxury segment of cars. 42.43% have super luxury cars.

Q: 8 Which category of car segment would you like to switch on next to?
Economy Luxury Super luxury Total 14 123 167 304

P a g e | 70

Analysis:
Out of the total people surveyed 4.61% would like to remain in the economy segment of cars, 38.49% would like to switch on to luxury segment of cars. And out of the 35% of people already in luxury segment would like to move on to super luxury segment. That comprises of 65% of total people survey.

Q: 9 Would you like to buy a super Luxury car?

Yes No Total 255 49 304 84% 16% 100%

P a g e | 71

Analysis:
Out of the total people surveyed 83.88% would like to buy super luxury cars and 16.12% would not like to switch on to super luxury cars.

Q: 10 Rate the following companies according to your preference:

Particulars BMW AUDI MERCEDES VOLKSWAGON SKODA

Total 1073 1029 941 735 181

Rank 1 2 3 4 5

Analysis:
BMW is the most preferred car out of all the above cars where as Skoda is the least preferred car. Skoda is least preferred because it is less luxurious as compared to other cars in this segment. It also has very less models that qualify for super luxury segment. It has less safety and stylish features. BMW is ranked first by the customers because of its safety features: Air bags P a g e | 72

 Power windows First aid kit Anti theft and locks Child seat attachment.

Q: 11 Why would you go for a specific company?

Brand name Price Status symbol Personal choice Safety features Attitude of others Situational factors 51 45 38 38 54 15 21

P a g e | 73

Analysis:
The most preferred feature that makes people go for a specific company is safety feature where as the least preferred feature is attitude of others. There was a basic conception that people purchase super luxury cars as a status symbol but now the awareness has increased among the individuals that make the people go for safety features as the most preferred feature and status symbol comes later on as 4th preferred feature.

Q: 12 Which of the following features

Number of Customers
60 50 40 30 20 10 0 Brand name Price Status symbol Personal Safety Attitude of choice features others 15 Number of Customers 51 54 45 38 38

you desire / prefer in a super luxury car? Rank the features on the scale of 1 to 5 in each of the following sub sections with rank 1 as the highest preference
P a g e | 74

 Exterior features:
Particulars Front fog lamps Rain sensor Xenon headlights Chrome trim on side windows Sunroof Total 825 875 902 654 638 Rank 3 2 1 4 5

Analysis:
Xenon headlights are the most preferred exterior feature. Basically it is chosen due to its stylist look and clarity of the light. Whereas sunroof is the least preferred as it is not popular in India basically due to the reason that India is a hot country and people do not prefer sun.

Interior features

Particulars Leather upholster Multi function trip computer

Total 891 893 3 2

Rank

P a g e | 75

Navigation Electric sun blind for rear window Smokers package

897 700 533

1 4 5

Analysis:
The most preferred interior feature is Navigation facility. It is due to the reason that India has growing in a very rapid speed and so is the road system in India, Thus to keep ourselves updated. We need navigation facility. Smokers package is a least preferred interior feature because it is expensive and unheard of.

Safety features

Particulars Wheel locks Air bags

Total 816 910

Rank 3 1 P a g e | 76

Anti-lock system Child seat attachment Anti-skid control

887 622 607

2 4 5

Analysis:
Air bags is the most preferred safety feature, the main reason is due to increasing rate of accidents in India every day. Thus, people prefer Airbags for their safety. Anti-skid control is the least preferred safety feature. It is mainly because high speed driving is not possible on Indian roads. Moreover, there is also lack of awareness about this feature.

Driving dynamics

P a g e | 77

Particulars Rear wheel drive Four wheel drive Long drive comfort ability Cruise control Automatic transmission

Total 838 834 885 736 729

Rank 2 3 1 4 5

Analysis:
Long drive comfort ability is the most preferred driving dynamic feature. It is due to the reason that people give more importance to comfort factor while undertaking long trips. Automatic transmission is most least preferred safety feature of driving dynamics. It is due to unawareness and moreover it is very expensive technology.

Value added features

P a g e | 78

Particulars Variety of Colors Spoiler Telephone cradle Boot tray Coffee table

Total 1068 864 867 665 604

Rank 1 3 2 4 5

Analysis:
Most preferred value added feature is Variety of colors. It is because that every individual thinks that it creates a unique identity and it also personifies ones individuality. Coffee table is the most least preferred value added feature, because it occupies more space and as the quality of roads in India is not up to the mark and thus the people do not preferred.

P a g e | 79

Q: 13 Which of the following sources do you relate to while purchasing a car?

P a g e | 80

P a g e | 81

P a g e | 82

P a g e | 83

P a g e | 84

Website Publicity Advertisements Endorsements Old customers Others

47 61 90 25 49 11

S ources
100 80 60 40 20 0 Number of Customers

Analysis:
Customers refer to advertisement as the most preferred source that relates to while purchasing a car. Whereas the least preferred is other reasons. These other reasons include: Personal choice Rate of cars P a g e | 85

 Suggestions of friends

Sources of information that customers relate to while purchasing a car

BMW
Website Publicity Advertisement 3 10 2 20% 67% 13%

P a g e | 86

Audi
Website Publicity Advertisement Old 5 9 3 10 19% 33% 11% 37%

P a g e | 87

P a g e | 88

Mercedes-Benz

Website Publicity Advertisement Old customers

2 2 1 16

9% 10% 5% 76%

P a g e | 89

Volkswagen

Website Publicity Advertisement Endorsement Old customer

1 2 4 3 21

3% 6% 13% 10% 68%

P a g e | 90

Skoda

Website Publicity Advertisement Old customers

3 2 5 25

9% 6% 14% 71%

P a g e | 91

Q.14 Do you suggest that these companies should start their manufacturing units in India?
Yes No Total 268 36 304 88% 12% 100%

P a g e | 92

Analysis:
Out of the total people surveyed 88.16% desires that super luxury cars should start their manufacturing units in India and the reasons are it leads to reduction in price P a g e | 93

of the cars, easy availability custom duty will reduced, spare parts are easily available and the delivery time also reduces. Whereas only 11.84% do not want the manufacturing units in India and the reasons are the quality of the product might reduce and the importance of the brand reduces due to easy availability.

Owners suggestion about whether company should have manufacturing plant in India or not: BMW
Yes No 6 9 60% 40%

No 30%

Yes 70%

Yes 40% No 60%

Audi

Yes No

10 17

37% 63%

P a g e | 94

Yes 37% No 63%

Mercedes-Benz

Yes No

17 4

70% 30%

No 37% Yes 63%

Volkswagen

Yes No

21 9

63% 37%
No 19%

Yes 81%

Skoda
P a g e | 95

Yes No

22 13

81% 19%

Analysis:
The customers of SKODA and MARCEDES BENZ are highly satisfied with the numbers of show room in Ahmadabad while the customers of Volkswagen are highly dissatisfied with the numbers of show room in Ahmadabad.

P a g e | 96

Q: 15 Are you satisfied with no of showrooms?

Yes No Total 200 104 304 66% 34% 100%

Analysis:
P a g e | 97

Out of total people surveyed 65.79% people are satisfied with the number of showrooms in India where as 34.21% people are not satisfied with the number of showrooms in India.
No 33% Yes 67%

Customers satisfaction over numbers of showrooms: BMW

Yes No 10 5 67% 33%
No 56% Yes 44%

Audi

Yes No

12 15

44% 56%

Mercedes-Benz
P a g e | 98

Yes No

15 6

71% 29%
Yes 32%

Volkswagen

No 68%

Yes No

10 21

32% 68%

Skoda

Yes No

25 10

71% 29%
No 29% Yes 71%

No 29% Yes 71%

P a g e | 99

Analysis:
The customers of SKODA and MARCEDES BENZ are highly satisfied with the numbers of show room in Ahmedabad while the customers of Volkswagen are highly dissatisfied with the numbers of show room in Ahmedabad.

P a g e | 100

Q: 16 Are you satisfied with no. of service stations?

Yes No Total 187 117 304 62% 38% 100%

Analysis:

P a g e | 101

Out of the total people surveyed 61.51% are satisfied with number of service stations in India where as 38.49% are not satisfied with the number of service stations in India.

Yes 33%

Owners satisfaction over number of service stations: BMW

Yes No 5 10 33% 67%

No 67%

Yes 32%

Audi

No 68%

Yes No

10 21

32% 68%

Mercedes-Benz
P a g e | 102

Yes No

15 6

71% 29%
Yes 32% No 68%

Volkswagen

Yes No

10 21

32% 68%

No 29% Yes 71%

Skoda

Yes No

25 10

71% 29%
No 29% Yes 71%

P a g e | 103

Analysis:
The owners of SKODA and MERCEDES BENZ have more satisfaction with 71% over the number of service stations wherein the owners of VOLKSWAGEN are least satisfied.

P a g e | 104

Q: 17 What is the level of your post purchase satisfaction?

Delighted Satisfied Dissatisfied Total 32 91 6 129 25% 70% 5% 100%

Analysis:
Out of the 129 people who posses super luxury cars 24.81% people are delighted with their post purchase satisfaction where as 70.54% are satisfied with their post purchase satisfaction.4.65%are dissatisfied with their post purchase satisfaction. P a g e | 105

The reasons for their dissatisfaction are major technological false are not easily solved due to less number of service station, maintenance cost is very high and it provides less average.

Satisfied 33%

Post purchase satisfaction level of car owners: BMW

Delighted Satisfied Dissatisfied 10 5 0 67% 33% 0%

Delighte d 67%

Dissatisfi ed 4% Satisfied 22%

Audi

Delighte d 74%

Delighted Satisfied Dissatisfied

20 6 1

74% 22% 4%

Mercedes-Benz
P a g e | 106

Delighted Satisfied Dissatisfied

10 6 5

48% 28% 24%

Dissatisfi ed 32%

Delighte d 16%

Volkswagen

Satisfied 52%

Delighted Satisfied Dissatisfied

5 16 10

16% 52% 32%

Delighte d 17%

Skoda
Dissatisfi ed 57%

Satisfied 26%

Delighted Satisfied Dissatisfied

6 9 20

17% 26% 57%

Dissatisfi ed 24% Satisfied 28%

Delighte d 48%

P a g e | 107

Analysis:
The owners of AUDI are highly DELIGHTED with the post purchase satisfaction level with 74%. Whereas the owners of VOLKSWAGEN have maximum post purchase satisfaction as well as dissatisfaction level with 52% and 32% respectively.

P a g e | 108

Q: 18 How was your experience regarding after sales service?

Excellent Good Average Total 47 77 5 129 36% 60% 4% 100%

Analysis:
P a g e | 109

Out of 129 people who posses super luxury cars 36.43% grad their after sales service as excellent,59.69% grad after sales service as good whereas 3.86% people grad it as average. Average
Average 7% 7%

Post Sales Service satisfaction of car owners: BMW

Excellent Good Average 5 9 1 33% 60% 7%

Excellen Excellen t t 33% 33% Good Good 60% 60%

Average 0% Good 33% Good 33% Excellen t Excellen 67% t 67%

Audi

Excellent Good Average

18 9 0

67% 33% 0%

Average 10%

Good 33%

Excellen t 57%

Mercedes-Benz
P a g e | 110

Excellent Good Average

12 7 2

57% 33% 10%

Excellen t 13%

Volkswagen owners:
Average 61%

Good 26%

Excellent Good Average

4 8 19

13% 26% 61%

Excellen t 14% Average 26%

Skoda

Excellent Good Average

5 21 9

14% 60% 26%

Good 60%

P a g e | 111

Analysis:
The maximum AUDI owners have graded the post sale service of it as EXCELLENT with 67%. Whereas the maximum VOLKSWAGEN owners have graded the post sales service of it as an AVERAGE with 61%.

P a g e | 112

Q: 19 How do you dispose your old cars?

Get rid of it temporarily Get rid of it permanently Keep it Total 07 52 70 129 6% 40% 54% 100%

Analysis:
Out of the total people surveyed 0.054% dispose their old cars for temporary time basis (e.g.to give it on rent), 40.31% people dispose of permanently that is to sell it off where 54.26% people keep it with them. P a g e | 113

Q: 20 Do you prefer any other features in upcoming models, please specify:

Customers suggestions are as follows: - Sturdy bumpers - Anti scratch paint - Satellite connectivity and internet - Solar cars - Super charged torque - Improve mileage especially for cars running on petrol - LCD in car itself. - Bring new innovations in model design to maintain the exclusivity

P a g e | 114

P a g e | 115

P a g e | 116

SWOT ANALYSIS

P a g e | 117

P a g e | 118

Strength Resale value Roadside assistance Fuel cell research Strong market share Strong research and development activities Strong brand equity Geographic diversification Strong growth prospectus Strong sales Move to hydrogen power Style High performing products Supplier relations Opportunities Light weight cars Move up scale Hydrogen and electric cars Professional sport sponsorship Joint venture Strategic alliance Demand for fuel efficiency and hybrid vehicles growth opportunities in emerging markets

Weakness Fall in dollar price Low net return Increase in cost of raw material aged design Close competition Waiting list Building time Limited liquidity position

Threat Global economic slow down Rising overheads MPG regulations Rising fuel prices Little to no experience Entry in the new markets Competitors Stricter emission standards P a g e | 119

P a g e | 120

Model Questionnaire
Questionnaire: Consumer survey on Super Luxury Cars P a g e | 121

 Personal details:
1) 2)

Name: Address:

3)

Gender:

Male

Female
4)

Age:

5)

Monthly income: Rs. 1 lac to 3 lacs Rs. 3 lacs to 5 lacs Rs. 5 lacs and above

General details:

6)

Do you have a car? Yes No

7)

Which segment of car do you currently have? Economy Luxury P a g e | 122

Super luxury

8)

Which category of car segment would you like to switch on next to? Economy Luxury Super luxury

9)

Would you like to buy a super luxury car? Yes No

If yes:
10)

Rate the following companies according to your preference: BMW AUDI MERCEDES VOLKSWAGON SKODA

11)

Why would you go for a specific company? Brand name Price Status symbol P a g e | 123

Personal choice Safety features Attitude of others Situational factors

Comfort and convenience:

12)

Which of the following features you desire / prefer in a super luxury car? Rank the features on the scale of 1 to 5 in each of the following sub sections with rank 1 as the highest preference

(a)

Exterior features: Particulars Front fog lamps Rain sensor Xenon headlights Chrome trim on side windows P a g e | 124 Rank

Sunroof

(b)

Interior features Particulars Leather upholster Multi function trip computer Navigation Electric sun blind for rear window Smokers package Rank

(c)

Safety features Particulars Wheel locks Air bags Anti-lock breaking system Child seat attachment Anti-skid control Rank

(d)

Driving dynamics P a g e | 125

Particulars Rear wheel drive Four wheel drive Long drive comfort ability Cruise control Automatic transmission

Rank

(e)

Value added features Particulars Variety of Colors Spoiler Telephone cradle Boot tray Coffee table Rank

Market appeal:
13)

Which of the following sources do you relate to while purchasing a car? Website Publicity Advertisements Endorsements Old customers P a g e | 126

If others specify:

Consumer satisfaction / feedback

14)

Do you suggest that these companies should start their manufacturing units in India? Yes No

15)

Are you satisfied with no. of showrooms? Yes No

16)

Are you satisfied with no. of service stations? Yes No

Note: - The following section should be filled by only those individuals who already possess a super luxury car
17)

What is the level of your post purchase satisfaction? Delighted Satisfied Dissatisfied

P a g e | 127

18)

How was your experience regarding after sales service? Excellent Good Average

19)

How do you dispose your old cars? Get rid of it temporarily (e.g.: to give on rent) Get rid of it permanently (e.g.: to sell it off) Keep it

Conclusion:

20)

Do you prefer any other features in upcoming models, then please specify

P a g e | 128

P a g e | 129

Conclusion
The customers are almost satisfied with the services provided by companies like BMW, AUDI, VOLKSWAGEN, SKODA and MERCEDES. This survey gives us an idea of the unseen expectations of the customers. Customers are happy with their experience with the sales persons and the dealers. However the post purchase satisfaction is not impressive enough because according to our survey maximum customers are just satisfied but not delighted. The analysis shows that the customers prefer BMW as the top most super luxury car company as compared to others. Through this survey we can conclude that the customers do not believe in showing off their vehicles, what they need is special treatment. It doesnt mean that they want invitation for product launch or promotional activities. But they want to feel that the organization should care about them, even though they do not go for re-purchase. Through this survey we can also conclude that customers prefer safety features over brand name or status symbol while purchasing a super luxury car. The promotion tool that highly appeals them is advertisement. They also desire that these super luxury companies should start their manufacturing units in India. In summary the customers interests are changing and they are ready to move towards super luxury car segment.

P a g e | 130

Bibliography
www.google.com www.indiainfoline.com Showrooms and outlets of BMW, Skoda, Audi, Mercedes-Benz and Volkswagen Brochure of Respective companies Magazine: Auto Car Official websites of BMW, Skoda, Audi, Mercedes-Benz and Volkswagen.

P a g e | 131