INTRODUCTION

Perhaps the most distinctive skill of professional marketers is their

ability to create, maintain, protect, and enhance brands. Branding is the

art and cornerstone of marketing. The American Marketing Association

defines a brand as: a name, term, sign, symbol, or design, or a combination

of them, intended to identify the goods or services of one seller or group

of sellers and to differentiate them from those of competitors. Thus a

brand denitrifies the seller or maker.

“What distinguished a brand from its unbranded commodity

counterparts is the consumer’s perceptions and feelings about the

product’s commodity counterparts is the consumer’s perceptions and

feelings about the product’s attributed and how they perform. Ultimately,

a brand resides in the minds of consumers. A brand can be better

positioned by a associating its name with desirable benefits.

A brand is much more than a name, logo, colors, a tagline, or

symbol . These are marketing tools tactics. A brand is essentially a

marketer’s promise to deliver a specific set of feature, benefits and services

consistently to the buyers. The marketer must establish a mission for the

brand and a vision of what the brand must be and do.

Brand nodding occur when customers experience the company as

delivering on its benefit promise. The fact is that brands are not built by

advertising but by the brand experience. Brands vary in the amount of

power and value they have in the marketplace. At one extreme are brands

that are not known buy must buyers then there are brands for which

buyers have a fairly high degree of brand awareness. Beyond this are

brands with a high degree of brand acceptability.

We define brand equity as the positive differential effect that

knowing the brand name has on customer response to the product or

service. Brand equity results in customers showing a preference for one

product over another when they are basically identical. The extent to

which customers are willing to pay more for the particular brand is

measure of brand equity.

A brand needs to be carefully managed a so that its equity does not

depreciate. This requires maintaining or improving brand awareness,

perceived quality and functionality, and positive associations. These tasks

require continuous R and D investment, skillful advertising, and excellent

trade and consumer service.

 IMPORTENCE OF THE STUDY

The motive of the any company is to generally acquire larger market

share high % of sales the Industry, This could be only achieved by

building a higher % of brand loyal customers.

Any company can survive through there is a stiff computational the

market if its has brand loyal customer. Today many major companies in

the market if its has brand loyal customers. To day many major

companies in the market try to maintain and improve there branded

equity. With out creating a proper Brand awareness they cannot build

brand image.

Strong brands help build the corporate image and also by making it

eager for the companies launch new brands. Today brands are treated, as

major enduring assets of a company-more over brand equity are major

contributor to customer equity. This all can happen only there is proper

brand awareness.

The light four wheeler industry has been expanding rapidly are

gone the day when possessing a small and mid-size cars was seen as a

luxury. Now days it is viewed s a mere necessity.

 SCOPE OF THE STUDY

The overall scope of the present study considers all the variables

and factors that have major impact over the customers in considering

particular brands. This especially included how a customer regally

evaluate recognizes the brand and what position particular brand

occupies in the customer mind.

This includes how a customer gets attracted towards the brands and

what makes a brand highly significant over their competitive brand. The

study includes how hand awareness among potential customers can be

maintained and improves.

The project has been done in Visakhapatnam city only. The survey

was confined only to Hyundai customers to presently posses only Santro.

The survey was especially focused on existing Santro owners for finding

how they are influenced by the brand and what made them aware of the

brand. After the survey was done the data was analyzed and also

relevant suggesting were made in order to improve its brand awareness

towards Santro
 METHODOLOGY OF THE STUDY

The study is conducted empirically using both primary and

secondary data.

Using a well-structured Questionnaire provided by the company

collects primary data. Around 100 potential customers were surveyed to

understand the customer’s attitude in evaluating the after soled services

rendered by AYS Automobiles Pvt. Ltd., All the persons interviewed were

in the age group above 25 years. It has been deliberately decoded to

conduct the survey among this age group because they are the people who

are generally looking ahead for the purchase of a four-wheeler apart from

the existing two-wheeler. Many of these persons interested are either

businessmen or professionals; few of them are corporate managers also.

The secondary data is collected from AYS Hyundai ltd. By going

through their corporate records, brochures and annual reports of the

company along with their newsletters were used to substantiate the

information.

The details about the four-wheeler market are collected from a few

specialized magazines like Auto India etc.

SOURCES OF DATA:

The data has been collected from both primary and secondary

sources, to get information regarding the organization and products.

PRIMARY DATA:

Primary data has been collected through questionnaires. The

questionnaire was mostly related to the brand awareness towards Santro

of the customers on different feature such as the model, price,

effectiveness of the brand etc. Provided by Hyundai motors ltd.

SECONDORY DATA:

Secondary data has been taken from bellow sources:

1. Reports

2. Pamphlets

3. Advertisement

4. Customer database

5. Newspapers

6. Internet
SAMPLING:

Out of few lakes of Hyundai customers spread all over India, the

customers of Hyundai motors Ltd., Visakhapatnam city only are taken as

target population for the study.

SAMPLESIZE:

The sample size of 100 is selected from the database of the company.

The study requires on in depth survey and teen observation in collecting

data regarding the brand awareness levels of Hyundai customers.

SAMPLING TECHINIQUE:

Only simple random sampling technique is adopted in selection the

sample. In this technique, each and every unit of the population has on

equal opportunity of being selected in the sample

DATA COLLECTION PROCESS:

Based on need and objectives ,types of data required for study and

other sources of data are identified.

 Data was collected with the help of the questionnaires

Obseration

Primary Data

Questionnaire
Data
News
Inside the Letters
Organization Documents
Secondary
Data

Outside the
Organization Libraries,
Magazines
etc

OBJECTIVES

The study has been conducted with the following objectives in

mind:

1. To know how brand awareness made customer to purchase product

(Hyundai car)

2. What factors and variables of brand influence them to purchase.

3. To know what position does the brands has in the minds of

customers.

4. To know how they became aware of the brand (Santro)

5. To know level of satisfaction about the brand awareness ( Santro)

offered by Hyundai.
6. To find out the market potential for Hyundai cars ( Santro).

7. To know how maintain and improve brand awareness build brand

loyalty.

LIMITATIONS OF THE STUDY

 Even though the project has been done without most car, it suffers

from the following limitations.

1. Due to lack of time all customers, could not be contracted.

2. The study has been restricted to Visakhapatnam city only.

3. As the project is a simple sample study and is confined to 100

customers only, if may or may not pictures the entire customer

feelings.

4. The awareness levels of the customers may change from time to

time and so there is a possibility of changes in the research results.

Few customers refused to respond or could not respond appropriately

due to Lack of time, Ignorance etc.,

INDUSTRY PROFILE
 In 1769, a French engineer CAPTIN NICHOLAS built the first load

the vehicle propelled by its own power. It was a three-wheeler, four-

seatwork vehicle fitted with steam engine. It attained a peed of about

21/2 M.P.H. for 15 minute. In 1880. German & French efforts developed

of this vehicle.

In 1885, Benz in Germany built a tricycle propelled an internal

combustion engine. In 1885-86, GOTTLEEF DAIMLETpatented an

internal combustion engine. In 1895, CHARLES E.DURYES and

ELWOOD and J.HAYNES in America developed experimental

automobile. In this year PANCHARD and LEVAMOR in France also

developed a car with minor executions incorporated the chief features of

the automobile as we know it today. In 1890-95, the European designers

were also active in the development of automobile.

In 1900. The design of the automobile so improved that it awakened

the public to the fact that it was new form of transportation.

In 1906, many of the great names around which the world’s largest

manufacturing industry was to be built in America had already begin to

manufacture the automobile vehicle, Packard, Auto car –Oldsmobile,

white, bulk overland, ford, cadillan-c etc., all these names were, motor

vehicles before 1905. Pierce-arrow, locomotive, Maxwell, franking and

peerless were also important at that time in the technical and commercial

development of the motor vehicle.

 In 1920, there was a gradual change and refinement in automobile

design. It was clear by the spark ignition gasoline engine, which was the

power plant of the modern motor; vehicle water-cooled engine was almost

universal. The sliding gear transmission had established itself as

predominant. The puppet value was used in almost every engine.

Engines were all located of the chassis.

In this period the major developments were made in every carry

features. The designers tried to produce a vehicle which will function at

all times under all conditions and which were comfortable to ride and

easy to operate. Increased life of tyres, , independent, front wheel

suspension, four wheeler hydraulic brakes, high compressions ratio,

higher power, use of new materials and hundreds of other changes have

been made.

In recent years, the passenger car’s chassis construction has been

forced to shape itself and redesigned bodies. While in the field of truck

design , body chassis problems now get simultaneous consideration to

automatic transmission and many other new feature are in today’s car.

The diesel engine was invented only a few years after the spark ignition

engine cars came into existence. Cars provided the facility to the owners

that are safe, easier to drive, more reliable and comfortable.

HISTORY OF AUTOMOBILES IN WORLD SCENARIO

 In 1769, a French Engineer Captain Nicholas built the first load

vehicle propelled by its own power. It was a three-wheeler four-seater

vehicle fitted with steam engine. It attained a speed of about 2 Y2 MPH

for 15 minutes.

In 1880, German & French efforts developed an internal combustion

engine vehicle. The present day automobile is the development of this

vehicle.

In 1885, Bent in Germany built a tricycle propelled by an internal

combustion engine in Germany

In 1885-86, Gottlief Daimlet patented an internal combustion engine

in Germany.

In 1895, Charles E. Duryes and Elwood and J.Haynes in America

developed an experimental automobile. In this year pan chard and

elevator in French also developed a car with motor execution and

incorporated, the chief features of the automobile as we know it today.

In 1890-95, The European designers were also active in the

development of the automobiles.

In 1895, European designers purchased from France had the engine

placed in front of chassis, housed on to a sliding gear transmission and

incorporated brake pedal clutch and accelerator.

 In 1900, the design of the automotive was so improved that it

awakened the public to the fact that this new form of the transportation

was really practical form.

In1906, many of the great name around which the world’s largest

manufacturing industry was to be built in America had already begin to

manufacture the automobile vehicle Packard, autocarolds mobile, while,

Bulk Overland, Ford, Cadillac-C etc., all these names were on motor

vehicles before 1905. pierce-Arrow, Locomotive, Maxwell, Franking and

peerless were also important in that time in the technical and commercial

development of the motor vehicle.

In 1920, there was a gradual change and refinement in automobile

design It was clear by that the spark ignition gasoline engine was the

power plant of the modem motor vehicle water-cooled engines were

almost universal.

The sliding gear transmission had established itself as predominant.

The puppet value was used in almost every engine design. Engines were

also located in the chassis .

In this period the major improvements were made in very carry

feature. The designers tried to produce a vehicle which will function at all

times under all conditions and which were comfortable to ride and easy

operate.
 Increased life of tires, independent front wheel suspension, four

wheel hydraulic breaks, high compression ration, higher power, use of

now materials and hundred’s of other changes have been made.

In recent years, the passengers car chassis construction has been

forced to shape itself tore-designed bodies, while in the field of truck

design, body-chassis problems now get simultaneous consideration to a

greater than even before.

Fluid play wheels, freewheeling over drives, automatic transmission

and many other newer features are in the today’s car.

The diesel engine was invented only a few years after the spark

ignition engine car had engine in the years had provided the owner with

cars that are afe, easier to drive, more reliable and comfortable.
 AUTOMOBILES IN INDIAN SCENARIO

One of the most visible signs of entry of automobile multinational

companies (MNC’s) into India is the hue of multi colored cars seen on

Indian roads, of courses this does not mean that the changes effected but

those MNC’s are only cosmetic.

The truth is that their entry has led to far reaching changes in both

manufacturing marketing of automobiles. The transition has been

necessitated by the entrance of international companies accompanied by

the infusion of modem technology.

These manufactures continued to maintain their monopoly as to

regulations then exist in the country did not permit any reputable

automobile manufacturer to establish company here.

While elsewhere in the world survival for automakers depended on

introduction of cars with better technology at that time was a mute

spectator to all these technological advances were protected and

monopolist regime.

The Indian automobile industry is at the threshold of a transition that

will affect all the segments from two wheelers to tractors. This tradition

has been necessitated by the entrances of MNC’s by the infusion of

modern technology.
 In the coming years all segments in the industry will face challenges

on account of either over supply price was or a shifty in consumers

preferences. This is likely to be felt more intensively in passenger car

segments than in other segments in the industry with a 25% present

growth of $8 billion.

Indian automobile is one of the fastest growing industry in the

world. The major automobile industry is one of the fasted growing world.

The major auto manufacturers are well aware of the galloping growth rate

and most of them have rushed to set up company in India to slice of the

potentially gigantic market.

The automobile industry long stifled in the era of the controls, is

emerging as a driving force for the engineering sector with almost all the

global leaders in the industry setting up a company in India.

There is an old saying” take a pan with some water, put frog in it and

start heating it, frog will never realize that with the rise in temperature in

is nearing its death but if you put the frog in a pan of hot water, it will at

once jump out.”

Indian industries are in a similar situation, before liberalization, hey

never realized that they are nearing death. It was only after the

liberalization they realized.

 In the coming years all segments in the industry will face challenges

on account of either over supply price wars or a shift in consumers

preferences. This is likely to be felt more intensively in the passenger car

segments of the industry.

The trend in India is being changed by the so-called statues, need

and necessary the people who previously went on bikes now go on cars

not just one particular car but a variety of choicer among them. So, the

result is upgrade in the salad of cars in India which was pretty low.

The automobile not only an issue of consumption. It is regarded by

the government as a sector that drives an entire economy.

LIBERALIZATION POLICY

In 1991, the Government of India, announced an economic policy

package and initiated measures which may be said to have brought about

a qualitative change in the pattern of government business relationship

and statically altered the character of business of environment.

With the entry of MNC’s and growth of foreign companies,

domestic product markets are being increasingly subjected to forces of

competition.

It was in July, 1991 that the liberalization of economic policy

started in real terms. India opened it’s gated to foreign investors who were

seriously looking fore untapped markets to prop up the sagging global

passenger car segment.

 Most of this automobile MNC’s entered into joint ventures with

existing Indian automobiles manufacturer and simply used up the existing

facilities to assemble their cars.

So, the entry of Mac’s into the Indian protected market created a

wide range of choice for the buyers with latest models for the ultimate

satisfaction of the customers.

Very soon one can expect a multitude of years specially designed

and priced for Indians to hit the market. The new competitors are offering

product technologies that are far more advanced than the Maruti of 80’s

vintage. Many say that competition brings out the best in the people

posing challenges for all the old and new in the automobile industry.

In1769, a French engineer CAPTIN NICHOLAS built the first load the

vehicle propelled by its own power. It was a three-wheeler, four-seatwork

vehicle fitted with steam engine. It attained a peed of about 21/2 M.P.H.

for 15 minute. In 1880. German & French efforts developed of this vehicle.

In 1885, Benz in Germany built a tricycle propelled an internal

combustion engine. In 1885-86, GOTTLEEF DAIMLETpatented an

internal combustion engine. In 1895, CHARLES E.DURYES and

ELWOOD and J.HAYNES in America developed experimental

automobile. In this year PANCHARD and LEVAMOR in France also

developed a car with minor executions incorporated the chief features of

the automobile as we know it today. In 1890-95, the European designers

were also active in the development of automobile.

 In 1900. The design of the automobile so improved that it awakened

the public to the fact that it was new form of transportation.

In 1906, many of the great names around which the world’s largest

manufacturing industry was to be built in America had already begin to

manufacture the automobile vehicle, Packard, Auto car –Oldsmobile,

white, bulk overland, ford, cadillan-c etc., all these names were, motor

vehicles before 1905. Pierce-arrow, locomotive, Maxwell, franking and

peerless were also important at that time in the technical and commercial

development of the motor vehicle.

In 1920, there was a gradual change and refinement in automobile

design. It was clear by the spark ignition gasoline engine, which was the

power plant of the modern motor; vehicle water-cooled engine was almost

universal. The sliding gear transmission had established itself as

predominant. The puppet value was used in almost every engine.

Engines were all located of the chassis.

In this period the major developments were made in every carry

features. The designers tried to produce a vehicle which will function at

all times under all conditions and which were comfortable to ride and

easy to operate. Increased life of tyres, , independent, front wheel

suspension, four wheeler hydraulic brakes, high compressions ratio,

higher power, use of new materials and hundreds of other changes have

been made.
 In recent years, the passenger car’s chassis construction has been

forced to shape itself and redesigned bodies. While in the field of truck

design , body chassis problems now get simultaneous consideration to

automatic transmission and many other new feature are in today’s car.

The diesel engine was invented only a few years after the spark ignition

engine cars came into existence. Cars provided the facility to the owners

that are safe, easier to drive, more reliable and comfortable.

 HEAVY INDUSTRIES

With strengthened self-confidence thanks to straight success in

construction and automobiles, Honarary Chairman Chung Ju Yong again

made a challenge to the ship building industry.

This challenge received cold reaction from developed countries

when Hyundai asked them for funds and technology which were

necessary for the construction of a dockyard. They judged Korea to be a

weak country to carry the ship building industry. After important

attempts and negotiations with some countries, Hyundai finally borrowed

loan amounting to 100 million US dollars from British and Swiss bank.

The construction of the Uslan Dockyard started under the command

of Honarary Chairman Chung Ju Yong and was completed in 2 years and

3 months. The ceremony for the completion and the christening ceremony

for the 2 ships order were held together. This record of simultaneous

ceremonies remains as a unique event in the history of ship building

industry.

Hyundai Dockyard Company Limited was later renamed as

Hyundai Heavy Industry Company Limited and has been persistently

playing the pivotal role in domestic heavy industry. With all these

achievements it has staged itself a long side world wide business giants

with its extended operations in the fields of Hyundai Industries

Companies LNG carries Hyundai precision and industry company, a

magnetic levitation trains and Hyundai Electronics Company to name a

few.

ELECTRONICS (1983):

High technology is the key to success in 21st century business world.

We have to acquire a new knowledge before others and we have to do

what others cannot do, since its opening in 1983 it concentrated on the

HITECH industry. Its efforts were specially focused on semiconductor

production technology and development of latest technologies as a result

it has grown into the top corporation in the industry.

Hyundai Electronics Company Limited recorded over 80% annual

growth rate on average. It also founded Mabukri Research Institutes. In

this way the Hyundai Group has been active and persistent in research

activities playing the role of locomotive for the progress of Korean

Economy.

OTHER ACTIVITIES:

The top corporation is not obsessed with its growth. A corporation

can become the No.1 only when its returns its profits to the society. The

Hyundai Group has been taking the initiative in giving the profits back to

the society. Hyundai encourages the young people who give up their

dreams due to financial difficulty. The Asian Foundation was found in

1977 for such public undertaking Honorary Chairman Chung Ju Yong

invested private funds work of 50 billion in the foundation which was a

portion in the medical care, scholarships and cultural projects besides that
Asian Education Foundation includes Hyundai Middle School. Hyundai

High School and University of Uslan in dedicating itself to educating

young people full of dreams who will lead the future.

Honorary Chairman Chung Ju Yong has also been the president of

Federation of Korean Industries in 1977 and held this title for the longest

period among all the other presidents, devoting himself to the

development of Korean economy. Honorary chairman Chung Ju Gang

was also appointed as the chairman of Seoul Olympic committee in 1981

which were held in Nagoya city in Japan. Korea held the 88 Seoul

Olympics successfully and had a chance to upgrade its position in the

world.

The Hyundai Group which has the top in Korea not being satisfied

with it made all arrangement for growing into the No.1 Corporation in the

world. The new chairman of the group Chung Mong Koo in 1996 declared

value management to enhance its value through the services reduced by

the company to service in the age of limitless competition.

It further extends its business operations to the space and aircraft

steel and Banking sectors. Hyundai group preparing to meet the

advancement of Korean economy into other countries and to become a

world corporation dedicated to human welfare and happiness. Hyundai

Group is actively investing in the development of product and

technologies, which can be used for the societal development. Hyundai

Motor India Limited is a wholly owned subsidiary of $8.24 billion.

Hyundai Motor Company that was set up in 1967 as a part of Hyundai

business group of South Korea. With strong emphasis on performance

safety and product quality, Hyundai has a presence in 168 countries across

the world. The corporate philosophy of the company is to develop

mutually beneficial relationship with nations and communities.

Hyundai Group repeated its growth even during the age of

constructions with the indomitable Hyundai spirit of the past half-century

and it celebrated its 50th anniversary in 1997, encouraging all directions

and employees to work in concert.

GLOBAL NEWS:

Hyundai’s Accent named “ Best Value” by US Consumers.

U.K Customers give top marks to Accent’s reliability.

Hyundai shines at the Moscow motor show.

Hyundai Santro, Peak of popularity in the Indian market.

Hyundai reveals its newest concept car at the Paris Motor show.

Santro Fe proves excellence at the Crete test drive.

HMC to expand the Hyundai name in Turkey.

Hyundai on its way to build its second plant in China.

Mighty II to serve the Indonesia market for 5 years.

OVER VIEW OF THE INDIAN CAR MARKET

 Automobile industry in India is currently experiencing demand for

the vehicles of different types. This is due to volcanic increase in the

number of the vehicles of all categories and all types of the vehicles. The

reason for this is the Indian economy which was closed till then.

This is the sectors of the economy which benefited greatly by

globalization and liberalization.

The face of the industry has changed to such an extent just a decade

age one would fail to recognize it as the Indian auto industry. Today the

Indian market does not witness just as Ambassador Fiat competition.

Rather it has become a battle field for it is witnessing cut throat

competition between the world from this brands like FORD, HONDA,

MERCEDES, HYUNDAI, DAEWOO. Infact the leading market leader

MARUTI has lost a sizable crunch of its market share from a magical

mesmerizing 80% to 66.2% during the same period.

Hyundai plant was setup in Sriperambundur, 30km outside

Chennai in a record time. This shows a commitment to the Indian

customer and Indian auto industry. The first Hyundai Santro was

launched on October 20, 1998. Santro was set to be the best package for the

budget car buyer.

Y.S.KIM (Yang. Soo.Kim) is the Managing Director of Hyundai

Motor India. The Korea and Indian Engineers pore their efforts for the

efforts for the production Santro prototypes. The manufacturing style of

Hyundai Santro has not been the same as Maruti Udyog, which initially

imported C.K.D kits for the first Maruti 800. The manufacturing process

begins with coiled steel arriving from South Korea. The entire auto

industries in India rely on imported steel to manufacture vehicle body

structure, as locally available steel cannot be effective.

The assemble of the car is mostly manual HMI has set up a allimem

foundry on site to produces cast components like cylinder heads and gear

box casings. The reasons for Hyundai rapid implementation were wholly

owned subsidiary HMI could speed up the decision making process. It did

not have to conduct a local partner which might have slowed things

down.

This points towards two things the market has become competitive

and dynamic

1. Even the market leader cannot take its market share and the customers

2. The changing tastes and loyalty of the customers and subsequently the

ultra competition nature of the auto market.

The advent of the two Korean giants HYUNDAI’S SANTRO and

DAEWOO’S MATIZ marks an important turn in the Indian car scenario.

The success rate of the former teaches us what good marketing and

advertising of a good product can achieve. Santro is just in months has

become prime competitive for the car segment.

 HYUNDAI MOTOR COMPANY

A number of players have come in the car industry in few years,

many new models, new services and benefits according to the customer

taste and preference.

A new category continuous to be dominated by the leader like

Maruti Udyog, Hyundai, Daewoo, Fiat, Suzuki, Tata etc., but the

consumers may soon be able to pick up the models of different companies.

In recent years passenger’s car chassis construction has been forced

to shape itself redesigned bodies. While in the field of truck design, body

chassis problem now get simultaneous consideration to a greater extent

than ever before. Cars provided the facility to the owners that are safe,

easier to drive, more reliable and comfortable.

HISTORY OF PASSENGER CARS IN INDIA:

The passenger car in India has been considered as luxury item. Only

a rich and the super rich could afford a car. In the 50’s and 60’s owning a

car was the ultimate statement of having made it in life. There were just 3

major players namely Hindustan motors, Premier Automobiles and

Standard Motors.

The models they offered were the Baby Hindustan, its later version

called the Ambassador, the Fiat 1100 and the Standard Herald, which

fought for market share in a fairly stagnant market. The Ambassador and

the Fiat were the front-runners with the coming of the third.
 There were other players in other segments like the Wily Jeep and

Mahindra & Mahindra offerings. The late 70’s saw a movement to

produce a people car an attempt to bring the less rich into the fold of the

more fortunate ones. And so a seed was sown called the Maruti 800.

DIFFERENT CARS SEGMENT

There has evidently been a major shift in focus, world wide, to small

cars offers the most logically and cost effective means to combat traffic

congestion and air pollution in metropolitan cities. The global vehicle

giants are seriously contemplating entry into the big way.

For instance world class leaders like Mercedes Benz and Ford feel

confident about making mid size and luxury cars. The newly floated joint

ventures started producing luxury cars, completely ignoring the past vast

multitude of average buyers whose purchasing power in an inflation

ridden economy is very limited. All the three companies Telco, Hyundai

and Daewoo Matiz are confident enough of successfully marketing their

respective vehicle in the market that is sure to hot up in the coming and

later years.

The entry of the manufacturers has posed a big threat to MUL

whose monopoly in the car segment has remained unchallenged so far.

Well altered MUL is busy remodeling its Maruti 800 and may introduce a

new model Maruti 900 a cross between Maruti 800 and Zen in order to

meet the competition.

 When the MNC rushed to the Indian market and started producing

high technology vehicle, the prediction among the automobile experts was

that the Indian market wont have that much capacity to absorb the entire

production. A similar situation may arise if the market is crowded with

small cars. Also to be considered the fact that the road infrastructure

facilities and emission control regulation are most inadequate.

THE NEW ENTRANTS

The economic reforms of 1991-92 began to dismantle the policies

that had isolated and pushed the country’s growth rate from 4% to 7%.

India is now being routed as the new Asian tiger and this could be the

order of the day. The first multinational car to enter the Indian market was

the South Korea major DAEWOO. Its Cielo was in a direct competition

with the just launched Esteem. This was followed by Peugeot 309,

manufactured by the Premium Automobiles in collaboration with Peugeot

of France.

The industry truly took of as in a flurry of activity, nearly all the

major players announced plans to enter the market. Mercedes tied up with

Telco to produce E-220 and D-250.

General Motors tied up with Hindustan Motors to manufacture the

Opel Astra. Ford tied up with Mahindra & Mahindra and established

Mahindra Ford. Hyundai entered India through 100% owned subsidiary

to manufacture Santro followed by Mitsubishi Lancer. Honda recently

tied up with Hero Honda launched its own indigenous car the Indica.
ENTRY OF PREMIUM CARS

The premium car segment was chosen by the new entrants as a

market entrant as part of a market entrance strategy to create brand

awareness. Today we have the unusual spectacle of too many cars chasing

too few Indians for a country, which used to manufacture 1.81 lakh cars

per annum in 1991. India today produces over 4 lakh cars per annum. The

Indian market has now changed from sellers market to buyers market.

The first MNC car to enter into the Indian market was South Korean

major DAEWOO. The premium car segment was chosen by the new

entrants as part of the market entrance to create brand awareness.

Customers tend to hold back their purchase decisions in anticipation of

new car launches, price cuts, the glamour of millennium car and other

factors.

For the average Indian car buyer the entry on MNC’s is definitely a

big boom. The customer is getting the best technology on a part with other

developed countries.

COMPANY PROFILE

Hyundai Business Group is a South Korean company, which

entered into business activities way back in 1947 seeing the rapid
industrialization and modernization-taking place around the world. It

brought an international recognition to its country through its operations

round the world and paved its way to modern economic growth.

Hyundai group is composed of 50 subsidiaries like Ship Building,

Engineering & Construction, Heavy Industries, Machinery, Iron and Steel,

Electronics, Aerospace, Telecommunications, Information and

Technology, as well as Financing petrochemicals energy trade and service

sectors.

In 1960’s it involved in the construction industry. In 1970, it

concentrated on shipbuilding, automobile, steel and machine industries

and laid a foundation for Korean heavy industry. In 1980, it launched high

tech industries such as electronics robot petroleum, space and aircraft. In

1990, developed new technologies reformed management and stressed

training human resources, with the aim to become the No.1 Corporation in

the world.

AYS Automobiles Pvt, Ltd., started the dealership of Hyundai cars

at Rajahmundry for West Godavari Districts April, 1999. So far, AYS sold

about 309 Santro’s and 100 Accents and 2 Sonato’s. The company’s

turnover till date is around 16 crores.

The company has earned an amount of Rs. 72 lakhs by way of

dealer margins and sale of spares & accessories; by earning profit in the

first two years of operations.

 The workshop is equipped with the latest technology equipments as

per Hyundai specifications and is contributing Rs. 25 lakhs of revenue to

the company. The total value of Machinery & Equipment is worth Rs. 25

lakhs. The workshop also has an emergency road service to attend

complaints 24 hours a day anywhere in the territory. The show room is on

the NH-5 and is designed as per the Hyundai Motor India’s standard

pattern and is well lit to display the cars.

 HISTORY IN CONSTRUCTION FIELD

Hyundai group started from a small construction company named

Hyundai Land and Construction in 1947 has a growth under difficult

conditions. Hyundai Engineering & Construction Company Limited

enjoyed continued business growth after it was renamed from Hyundai

Land And Construction. The repair of Koryong Bridge in particular, put

financial status of Hyundai Group in a deep trouble owing to a severe

inflation in addition to its infant equipment and skills. However Honorary

Chairman Chung Ju Yong of Hyundai Group and employees of Hyundai

Engineering & Construction Company Limited willingly submitted to a

deficit and completed the bridge construction work successfully. This

success has left a vivid impression of Hyundai Group all over the industry

thereafter. Hyundai Engineering & Construction Company Limited

conducted the restoration work of the Hans River Bridge then it

undertook lots of construction works for the US army stationed in Korea.

Hyundai Construction Group later achieved an outstanding improvement

of technology by adopting mechanized construction methods and

advanced techniques and accumulated know-how in the management of

human resources.

Later in 1995 it became the very first construction company in

Korean to advanced into overseas sites. This has taken place when Korea

economy was in a depressed state, when Korea was under such

circumstances, a small company with a short history of a little over 10

years made its first entry into giant overseas market, any way Hyundai

Engineering & Construction Company Limited, let its challenge it a

success. In a led for a highway construction in Thailand in 1965, it

defeated developed countries with long experience in construction and

won the bid, which was a victory for a small country from the east.

Thereafter, Hyundai Engineering & Construction Company Limited

stepped into the Vietnamese market and earned reputation as a

construction company. It further marched to Alaska Guam, Australia,

Indonesia and many more countries.

Hyundai Engineering & Construction Company Limited

constructed the Juveil Industrial Port in Saudi Arabia, the largest scale in

the world and surprised everyone. Their entry into the Middle East was

decisive in revitalizing Korean economy, which was depressed due to

shortage of foreign currency at that time. Moreover advancement into Iraq

and Libya paved the way for establishing diplomatic relations with those

nations. Hyundai Engineering & Construction Company Limited,

continued seeking overseas market and stepped into regions of North

America and South East, the name and fame of technology of Hyundai

were known worldwide.

HYUNDAI SPORTS

Hyundai World Rally team, best ever in the Australia Rally

Hyundai Motor Company joins in the Fun of the Fustal 2000 promoting
the Hyundai name through South American Qualifying Games for the

World Cup 2002.

Hyundai operates overseas road service vehicle program

Hyundai Motor Company (HMC) has started its operations of the

world wide Overseas Service Program for its customers as part of the

Company’s commitment to provide the very best vehicle maintenance

service to its global customers.

HMC made its first shipment of 300 overseas service vehicles to 30

countries including Japan, Australia, New Zealand, Mexico etc and will

increase its shipment to dealers in 160 countries the following year.

As technology, quality, and reliability, improve amongst all cars

makers, this program can help difference Hyundai amongst existing and

potential customers, enabling to further raise Hyundai’s brand awareness

as well as boost the image of Hyundai Motor Company in the global

markets.

Santa Fe wins the good design product award

Hyundai’s Santa Fe received the prestigious Presidential Award at

the 2000 Good Design Products Exhibition held by the Korea Institute of

Industrial Design Promotion by the Ministry of Commerce Industrial and

Energy.
 Out of 985 products from 292 companies exhibited, 320 products

were selected as “Good Design Products” and only 39 products were

awarded prizes during the annual competition. Hyundai’s Santro Fe won

the most covered and honored award, the Presidential Award in the

Automotive section. By winning such a glorious award as thus once, it has

indefinitely proven Hyundai’s constant pursuit of excellence and

dedication to the development of beautiful styled cars for its potential

customers.

HMC tops list in customer satisfaction survey, 7 years straight

For the seventh consecutive year in 2000, HMC topped the list of

customer satisfaction in a survey conducted by Korea Management

Association Consultants, Korea’s largest management consulting

company.

According to the KCSI (Korea Customer Satisfaction Index), HMC

won first place in the passenger car manufacturing field for giving the

most satisfaction to its customers for the seven straight years. Hyundai

vehicles were praised for low NVH, stability-driving comfort, engine and

transmission performance, fit and finest and design of the exterior and

interior, maintenance service and the market reliability.

To heighten the awareness of Hyundai to world wise customers

HMC has come up with a brand new 2000 Corporate Image Campaign, a

long term strategy; in brand image development to steadily build up

Hyundai’s brand image and corporate image throughout the world

market.

Diesel Engine to penetrate the export market

HMC has successfully developed a common rail direct injection 2.0

diesel engine for passenger cars, becoming the first Korean car maker to be

applying his technology.

Hyundai develops large commercial diesel engine:

Using the latest technology, power tech engine increases the output

while attains maximum fuel efficiency, marking it a low consumption

engine. The power-tech engine has been developed with the design targets

improving the performance, reducing fuel consumption, lowering noise

and vibrations and reducing emissions. It has passed over 1 million

kilometers of various durability tests successfully providing its low noise

and vibration levels vastly improved compared to the previous large sized

commercial vehicle and bust engines.

Hyundai Accent named “ Best Value” by US Consumers

Hyundai Motor’s subcompact Accent was proudly named as the

best value car in the small car category in a survey of US consumers. The

survey was conducted by strategic vision a renowned consulting and

market research organization based in San Diego California.

Hyundai Santro, peak popularity in the Indian market

Hyundai is on a roll in the Indian market, emerging as top selling

import and posting sales of 75,843 units for the first 10 months of 2000.the

Santro proudly proved its success at being the top selling model for five

consecutive months since June. It has distinguished itself with a total sales

figure of 60,516 units between January and October. Also the Accent has

been the top selling model in the premium segment for 5 months

altogether where its sales reached a total of 15,327 units for the first 10

months. Thanks to the strong performance of both the Santro and Accent.

Hyundai has set higher goal for the future in the Indian market.

Hyundai Accent award Australia’s Best Small Car

The Accent was selected as Australia’s best small car for 2000 by

mix leading automotive consumer organizations in Australia.

Hyundai Motor Company joins in the fun for Futsal 2000

Hyundai Motor Company has proudly become the exclusive

automotive sponsor of the 4th FIFA Futsal World Championship

Guatemala 2000, held between November 18 to December 3. Hyundai

took this golden opportunity to leap into another area of the world market

and promote its brand name through various marketing activities and

advertisement.
 Hyundai Motor India Limited is a wholly owned subsidiary of the

Hyundai Motor Company (HMC), Korea, a part of the Hyundai Motor

Group comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis

and other affiliated companies, with a combined turnover of over US$ 50

Billion. Hyundai motor vehicles are sold in 166 countries through 4,504

dealerships and showrooms, Hyundai has a combined annuals sales of

over 3 million units and is one of the fastest growing auto manufacturers

in the world.

Hyundai and Kia together have R&D centers in the United States,

Europe, and Japan apart from the global R&D headquarters at Ulsan,

Korea.

The Hyundai Motor Group has recently dedicated an annual R&D

spend of close to US$ 2 Billion, up from US$ 1.2 Billion to enhance its

thrust on new product development and achieve global quality

benchmarks by year 2005. This includes the $30 mn Hyundai-Kia Design

and Technical Center in Irvive, California.

Focus

The R&D team focuses on the development of new products and

technologies that include interior and exterior design changes,

development of new generation engines and alternate fuel systems,

concept vehicles and advanced passenger safety and comfort systems, in

line with evolving customer preferences across the globe. Recent successes

of the team include the development of the Hyundai patented Common

Rail Direct Injection (CRDi) engine in association with Detroit Diesel and

the award winning Fuel Cell Santa FE.

Efforts

Some of the ongoing projects that the Hyundai R&D team is

involved in include the development of the ‘World Engine’ in association

with Daimler Chrysler and Mitsubishi and the development of

Automotive Telematics in association with IBM.

That the efforts of the Hyundai R&D team has paid great dividends

to the company is evident from the fact that the company’s newly

engineered products like the Santa Fe and the Getz have made waves in

the global automotive markets and the ‘US Consumer Reports’ magazine

has ranked Hyundai cars in level with that of Honda in its recent quality

rankings

Hyundai Motor India has been awarded the benchmark ISO 14001

certification for its sustainable environment management practices. Living

up to is commitment of providing global standards of quality and process

management in India, Hyundai had put in place an Environment

Management System (EMS) at its manufacturing plant in Chennai right

from its project stage. The certification process was completed in a record

time of 10 months with ‘Zero NCRs’. The assessment was done by TUV

SUDDEUTSCHLAND and covered areas like Awareness Training,

Technology Upgradation, Recycling, Waste Management and

fulfilling Government Regulations.

 HMI is also working on a backward integration strategy that will

support vendors of the company in implementing EMS.

Hyundai Motor Company, S. Korea, the parent of HMI, has been

doing considerable work on sustainable Environment Management. The

company has a well defined framework in place for developing products

that reduce pollutant emissions and processes for preservation of natural

resources and energy along all the stages of the product lifecycle from

production, sales, use to disposal. The company has also been in the

forefront development of environment friendly technologies like Hybrid

Electric Vehicles (HEV’s), and Fuel Cell Electric Vehicles (FCEVs) and has

been awarded the ISO 14001 certification for all its three major plants in

ULSAN, Asan and Jeonju in S. Korea.

Social Responsibility

Hyundai, as a responsible corporate citizen is committed to

sustainable social development and the preservation of the environment.

All the company’s key manufacturing units, including the Indian plant

have the ISO 14001 certification for its Environment management

practices. As a part of its social responsibility programs, the company

conducts various campaigns to spread awareness of in-car safety and safe

driving practices, particularly targeted against drunken driving, speeding,

etc.

As a part of its community development projects, the company has

adopted a few villages around its factory in TamilNadu and has been
working towards the social and economic development of these villages,

assisting them in the areas of primary health care, education, basic

amenities and employment opportunities

The production management process at Hyundai Motor India are

overlaid with an organization-wide implementation of manufacturing best

practices like Just-in-time inventory management, Kaizen, TPM and TQM,

that help us in making the world’s best cars, right here in India.
 HYUNDAI MOTOR INDIA LIMITED

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

of Hyundai Motor Company, S. Korea and is the second largest and the

fastest growing car manufacturer in India. HMIL presently markets over

18 variants of passenger cars across four models, the Santro in the B

segment, the Accent in the C segment, the Sonata in the E segment and the

Terracan in the SUV segment. The company recorded combined sales of

150,741 units during calendar year 2003 with both Accent & Santro

emerging leaders in their respective segments.

HMIL’s fully integrated state-of-the-art manufacturing plant near

Chennai boasts some of the most advanced production, quality and

testing capabilities in the country. The company is investing an additional

US$ 220 Mn to expand capacity at this plant to 250,000 units a year in line

with its recent designation as HMC’s global export hub for small cars and

to cater to its upcoming product launches India.

HMIL has sold over 500,000 cars in a record time of just over 5 years

since commencement of commercial production in September 1998 and is

all set to emerge as one of largest exporters of passenger cars and

components out of India. HMIL was recently awarded the benchmark

ISO 14001 certification for its sustainable environment management

practices.
Hyundai’s fully integrated manufacturing capabilities include:

The Press Shop

A computer controlled line that converts sheet metal to body panels

of high dimensional accuracy and consistency.

The Body Shop

A hi-tech line that builds full body shells from panels. Automated

robotic arms are used for intricate welding operations that ensure superior

and consistent build quality.

The Paint Shop

This is one of the most modern paint shops in the country and uses

the environment friendly water based process for superior and lasting

exterior. A unique process management system followed here helps us

deliver the most extensive colour range, independent of minimum batch

requirements, helping customers get their preferred colour anytime.

The Aluminum Fondry

Forges the engine cylinder blocks for our cars to exacting design

specifications.

The Engine and Transmission Shop

One of the biggest engine shops in the country, this unit is equipped

with the most modern tooling and testing facilities to make a wide range

of engines in house.
The Plastic Extrusion Unit

Moulds the dashes, bumpers and other plastic components to

perfect fit and finish.

The Plastic Paint Shop

One of the very few manufacturing units in India to have this

facility in-house, Hyundai’s plastic paint shop delivers a high grade finish

on exterior plastic components.

The Test Track

With comprehensive performance testing facilities like rattle testing

and ABS brake testing, this track is designed to meet pre-delivery (PDI)

certification standards to exacting Euro specifications.

 AYS AUTOMOBILE PVT. LTD.

The liberalization of Indian Economic Policy in the Finance Budget

has opened gates for renowned international carmakers to establish their

business/manufacturing units in our country and thereby created

opportunities in all spheres.

Hyundai Motor India Limited, a Korean Car Giant, has utilized the

above opportunity and started its manufacturing operations in Chennai

with an initial production capacity of 50000 cars/annum and increased its

capacity to 200000 cars/annum.

Hyundai Motor India Limited is the pioneer in introducing to

Indian customers the “first-of-its-kind” concepts like Hyundai Finance,

Contemporary Technology, Tall-boy Design etc. Through their

“leadership through listening” strategy, have been upgrading their

products to suite customer requirements. They believe in value addition to

their cars rather than selling on discounts. All their three cars viz.,

SANTRO, ACCENT & SONATA are No. 1 in their respective segments, in

terms of quality and volumes.

This liberalization has helped the salaried and upper middle class to

opt for a car which was hitherto a luxury. The low rates of interest and

easy processing procedures also helped these segment customers to buy

cars for their family needs.

 AYS Automobiles Pvt Ltd., is the dealer for Hyundai Motor India

Limited, in the five north coastal districts viz., Srikakulam, Vizianagaram,

Visakhapatnam, East and West Godavari Districts and started serving the

customers of these districts since October’ 1998.

AYS Automobiles Pvt Ltd., has 3300sft state-of-the-art showroom

located in Siripura, the heart of Visakhapatnam City and a customer care

center in Industrial Estate, 104 Area, with trained man power and latest

equipments to cater to the after-sales service of its customers.

AYS Automobiles Pvt Ltd., had sold nearly 2000 cars, through their

two outlets in Visakhapatnam and Rajahmundry till July’2003. In view of

the increasing sales and service volumes, they have opened a new sales &

service outlet in Bhimavaram and Kakinada. They have also opened

another customer care center at HPCL Millenium Auto Care in Siripuram.

This customer care center is opened exclusively to meet the growing

customer base and also to facilitate the customers living in Beach Road,

Pandurangapuram, Daspalla Hills, Kirlampudi Layout, CBM Compound,

MVP Colony etc., who will have paucity of time.

The customer care centers of AYS Automobiles Pvt Ltd., at HPCL

Auto Care and Industrial Estate has the facilities like Wheel Balancers,

Wheel Aligners, Thermax Paint Booths, Dent Sucking Machine, Emission

Control Equipment etc.,

 AYS Automobiles Pvt Ltd., had won several awards during 2000

and 2003 namely, No-1 Dealer in AP for Customer Satisfaction, Top

Performer in South Region for Hyundai Finance, No.1 Dealer for Sales

Satisfaction etc.,

The growth of AYS Automobiles Pvt., Ltd., shouldn’t have been

possible without the support of its associates, who have been extending all

their help ever since its inception and the success is attributed to their

dedicated, loyal and customer friendly staff.

We sincerely thank all the customers, who had patronized us.

 THEORETICAL FRAMEWORK

What is a Brand?

A Brand is a name, term, sign, symbol or design, or a combination

of them, intended to identify the goods or services of one sellers or group

of sellers and to differentiate them from those of competitors.

Most of the marketers say that “ Branding is the art and cornerstone

of marketing”.

In essence, a brand identifies the seller or maker. It can be a name,

trademark, logo or other symbol. Under trademark law, the seller is

granted exclusive rights to the use of the brand name in perpetuity.

Brands differ from other assets such as patents and copyrights, which

have expiration dates.

A brand is essentially a seller’s promise to deliver a specific set of

features, benefits and services consistently to the buyers. The best brands

convey a warranty of quality. But a brand is an even more complex

symbol. It can convey up to six levels of meaning.

Attributes:

A brand brings to mind certain attributes. By its well built, well

engineered, expensive, durable, high-prestige automobiles.

Benefits :

Attributes must be translated into functional and emotional

benefits. For example, the attribute “ durable” could translate into the

functional benefit. The people says that “I won’t have to buy another car

for several years”. The attribute “expensive” translates into the emotional

benefit “the car makes me fell important and admired”.

Values:

The brand also says something about the producer’s values.

Mercedes stands for high performance, safety and prestige.

Culture:

The brand may represent a certain culture.

Personality:

The brand can also project a certain personality.

User:

The suggests the kind of consumer who buys or uses the product.

If a company treats a brand only as a name, it misses the point. The

branding challenge is to develop the deep set of positive associations for

the brand. Marketers must decide at which levels to anchor the brand

identity.
 Promoting the brand only on one benefit can also be risky. Suppose

Mercedes touts its main benefit as “high performance”, then several

competitive brands emerge with high or higher performance. Or suppose

the car buyers start placing less importance on high performance as

compared to other benefits.

The most enduring meanings of a brand are its values, culture and

personality. The Mercedes stands for high technology, performance and

success. Mercedes must project this in its brand strategy. Mercedes must

resist marketing an inexpensive car bearing the name; doing so would

dilute the value and personality Mercedes has built up over the years.

Brand Equity:

Brands vary in the amount of power and value they have in the

market place. At one extreme are brands that are not known by most

buyers. Then there are brands for which buyers have a fairly high degree

of brand awareness. Beyond this are brands with a high degree of brand

acceptability. Then there are brand that enjoy a high degree of brand

preference. Finally there are brands that command an high degree of brand

loyalty.

The following are the 5 levels of customer attitudes toward his/her

brand from lowest to highest:

 Customer will change brands, especially for price reasons, not brand

loyalty

 Customer is satisfied. No reason to change the brand.

 Customer is satisfied and would incur costs by changing brand.

 Customer values the brand and sees it as a friend.

 Customer is devoted to the brand.

Brand equity is related to how many customers are in classes 3,4

or5. It is also related to the degree of brand-name recognition, perceived

brand equity, strong mental and emotional associations and other assets

such as patents, trademarks and channel relationships. Companies do not

normally list brand equity on their balance sheet because of the

arbitrariness of the estimate. But clearly brand equity relates to the

premium the brand commands times the extra volume it moves over an

average brand.

The world’s 10 most valuable brands in 1997 in rank order were

coca-cola, Marlboro, IBM, McDonald’s, Disney, Sony, Kodak, Intel, Gillette

and Budweiser.

High brand equity provides a number of competitive advantage:

 The Company will enjoy reduced marketing costs because of consumer

brand awareness and loyalty.

 The Company will have more trade leverage in bargaining with

distributors and retailers because customers expect them to carry the

brand.

 The Company can charge a higher price than its competitors because

the brand has higher perceived quality.

 The Company can more easily launch extensions because the brand

name carries high credibility.

 The brand offers the company some defense against price competition.

A brand name needs to be carefully managed so that its equity

doesn’t depreciate. This requires maintaining or improving brand

awareness perceived quality and functionality, and positive associations.

These tasks require continuous research and development investment,

skillful advertising and excellent trade and consumer service.

 AN OVERVIEW OF BRANDING DECISIONS

Branding Brand Sponsor Brand Name

Decisions Decisions

• Individual Names
• Blanket Family Name
• Manufacturers
• Separate Family
• Brand Brand
• Company Individual
• No Brand • Distributors
Names
(Pvt) Brand

Brand Strategy Decisions Brand-Repositioning Decisions

• Line Extension
• Brand Extension • Repositioning
• Multi-Brands • No Repositioning
• New Brands
• Co-Brands
Branding Decisions:

The first decision is whether the company should develop a brand

name for its products. In the past, most products went unbranded,

producers and intermediaries sold their goods out of barrels, bins and

cases without any supplier identification. Buyers depended on the sellers

integrity.

Today branding is such a strong force that hardly anything goes

unbranded.

In some cases, there has been a return to “ no branding” of certain

staple consumer goods and pharmaceuticals. Generics are unbranded,

plainly packaged, less expensive versions of common products such as

spaghetti, paper towels and canned peaches. They offer standard or lower

quality at a price that may be as much as 20% to 40% lower than nationally

advertised brands and 10% to 20% lower than retail private label brands.

The lower price is made possible by lower quality ingredients, lower cost

labeling and packaging and minimal advertising.

Why do sellers brand their products when doing so clearly involves

costs?

Branding gives the seller several advantages:

 The brand name makes it easier for the seller to process orders and

track down problems.

 The sellers brand name and trademark provide legal protection of

unique product features.

 Branding gives the seller the opportunity to attract a loyal and

profitable set of customers. Brand loyalty gives sellers some protection

from competition.

 Branding helps the seller segment markets.

 Strong brands help build the corporate image, making it easier to

launch new brands and gain acceptance by distributors and consumers.

Distributors and retailers want brand names because brands make

the product easier to handle, hold protection to certain quality standards,

strengthen buyer preferences, and make it easier to identify suppliers.

Consumers want brand names to help them identify quality differences

and shop more efficiently.

Brand-Sponsor Decision:

A manufacturer has several options with respect to brand

sponsorship. The product may be launched as a manufacturer brand

(sometimes called as National Brand), a distributor brand (also called

reseller, store, house or private brand), or a licensed brand name. Another

alternative is for the manufacturer to produce some output under its own

name and some under reseller labels. Manufacturers brands dominate,

large retailers and wholesalers have been developing their own brands by

contracting production from willing manufacturers.

 The private brands offer two advantages. First, they are more

profitable. Intermediaries search for manufacturer with excess capacity

who will produce the private labels at a low cost. Other costs, such as

research and development, advertising, sales production and physical

distribution are much lower. This means that the private brands can

charge a lower price and yet make a higher profit margin. Second, retailers

develop exclusive store brands to differentiate themselves from

competitors.

Brand Name Decisions:

Manufacturer and service companies who brand their products

must choose which brand names to use. Four strategies are available:

1. Individual Names:

A major advantage of an individual names strategy is that the

company does not tie its reputation to the product. If the product fails or

appears to have low quality, the company’s name or image is not hurt.

The strategy permits the firm to search for the best name for each new

product.

2. Blanket Family Names:

A blanket family name also had advantage. Development cost

is less because there is no need for “name” research or heavy advertising

expenditure to create brand name recognition. Further more, sales of the

new product are likely to the strong if the manufacturers name is good.

3. Separate Family Names for all Products:

Where a company produces quite different products, it is not

desirable to use one blanket family name. Companies often invent

different family names for different quality lines within the same product

class.

1. Company trade name combined with individual product names:

Some manufacturers tie their company name to an individual brand

name for each product.

Once a company decides on its brand name strategy, it faces the

task of choosing a specific brand name. The company could choose the

name of a person, location, quality, life style or an artificial name.

Among the desirable qualities for a brand name are the following:

 It should suggest something about the product’s benefits.

 It should suggest product qualities. Such as action or color.

 It should be easy to pronounce, recognize and remember. In this case

short names help mostly.

 It should be distinctive.

 It should carry poor meanings in other countries and languages.

Brand-Strategy Decisions:

A company has five choices when it comes to brand strategy. There

are line extensions, brand extensions, multi-brands, new brands and co-

brands.

1. Line Extension:

Line Extensions consist of introducing additional items in the same

product category under the same brand name, such as new flavors, forms,

colors, added ingredients and package sizes.

2. Brand Extensions:

A company may use its existing brand name to launch new

products in other categories.

3. Multi-Brands:

A Company will often introduce additional brands in the same product category.

Sometimes the company is trying to establish different features or appeal to different

buying motives.

4. New Brands:
 When a Company launches products in a new category, it may find

that none of its current brand names are appropriate.

5. Co-Brands:

Co-Brands are also called as dual branding, in which two or more

well known brands are combined in an offer. Co-branding takes a variety

of forms. One is ingredient co-branding, Second one is same company co-

branding, Third one is joint venture co-branding. And finally there is

multiple-sponsor co-branding.

Brand Repositioning:

However well a brand is currently positioned, the company may

have to reposition it later when facing new competitors or changing

customer preferences.

Brand Awareness: Nine Brand Strengtheners:

As Companies become more aware of the importance of brand

power, they wonder how they can strengthen their brands. Most

managers think the answer lies in increasing the advertising budget. But

advertising is expensive and it is not always effective. Advertising is only

one of nine ways to build more brand awareness and brand preference.

 Develop creative advertising.

 Sponsor well-regarded events.

 Invite your customers to join a club .

 Invite the public to visit your factory or office

 Create your own retail units.

 Provide well-appreciated public services.

 Give visible support to some social causes.

 Be known as a value leader.

 Develop a strong spokesperson or symbol to represent the Company.

 AGE GROUP

TABLE: - 6.1

Total Number of Customers Surveyed: 100

AGE GROUP NO.OF CUSTOMERS PERCENTAGE

25-45 52 52%

45-65 40 40%

65 And Above 8 8%

Total 100 100%

Interpretation:

From the above table, we can observe that 52% of the people

belongs to 25 – 45 age group, 40% of the people belongs to 45 - 65 age

group and 8% of the people belongs to 65 and above. The analysis shows

that most of the people belongs to 25 – 45 age.

60

50

40
25-45
30
45-65
20 65 And Above

10

0
NO.OF CUSTOMERS
TABLE:-6.2

Total number of Customers surveyed: 100

NO. OF
GENDER PERCENTAGE
CUSTOMERS

Male 87 87%

Female 13 13%

Total 100 100%

Interpretation:

From the above table we can observe that among 200 customers 87%

are Males and 13% are Females.

13%

87%
 Occupation

TABLE: - 6.3

Total Number of Customers Surveyed: 100

OCCUPATION NO.OF CUSTOMERS PERCENTAGE

Business 38 38%

Professional 30 30%

Student 7 7%

Employee 25 25%

Total 100 100%

Interpretation:

From the above table, we see that 38% of the people belongs to

Business, 30% of the people from Professionals, 7% of the people from

students and 25% of the People belongs to Employees. The analysis shows

that major part of the people belongs to Business category.

 38
40
35 30
25
30
25 Business
20 Professional
15 Student
7 Employee
10
5
0
NO.OF CUSTOMERS
 INCOME STATUS (PER ANNUM)

TABLE:- 6.4

Total number of Customers surveyed: 100

NO. OF
INCOME PERCENTAGE
CUSTOMERS

< 20,000 34 34%

20,000-40,000 52 52%

40,000 & above 14 14%

Total 100 100%

Interpretation:

The income status reveals that 34% of them are having less than

20,000 and 52% of them were between 20,000-40,000 and the remaining

14% were above 40,000. The analysis shows that the people who having

income per annum in between 20,000-40,000 are more.

14%

34%

52%
 FAMILY SIZE

TABLE:-6.5:

Total number of Customers surveyed: 100

NO. OF
FAMILY SIZE PERCENTAGE
CUSTOMERS

1-2 10 10%

3-5 78 78%

5 & above 12 12%

Total 100 100%

Interpretation:

Family size reveals that 10% of the people are having 1-2 family

size, 78% of the people are having 3-5 family size and 12% of the people

are having above 5 family size. The analysis shows that the family size

having 3-5 are using more.

90

80

70

60

50

40

30

20

10

0
1 to 2 3 to 5 5 & above

PURPOSE OF PURCHASE

TABLE:-6.6
Total number of Customers surveyed: 100

NO. OF
PURPOSE PERCENTAGE
CUSTOMERS

Utility 45 45%

Necessity 51 51%

Status 4 4%

Total 100 100%

Interpretation:

From the table, we can observe that 45% of the people purchase the

car for the purpose of utility, 51% of the people purchase for necessity and

4% people purchase for status. The analysis shows that most of the people

that is 51% purchase for necessity.

 51

60 45

50

40

30

20 4

10

0
Utility Necessity Status

WHAT FACTORS INFLUENCE TO BUY SANTRO

TABLE: - 6.7

Total Number of Customers Surveyed: 100

 FACTORS NO.OF CUSTOMERS PERCENTAGE

Style 14 14%

Price 18 18%

Brand image 30 30%

Performance 20 20%

Publicity 18 18%

Total 100 100%

Interpretation:

From the table, we can examine that 14% of the people prefer style,

18% of the people prefer price, 30% of the people opt for Brand image,

20% of the people have a preference on Performance and 18% of the

people opt for Publicity for buying the Santro Car. The analysis shows

most of them consider Brand image while buying.

 30

25

20 Style
Price
15
Brand image
10 Performance
Publicity
5

0
NO.OF CUSTOMERS

WHO INFLUECNE TO PURCHASE THE CAR

TABLE:-6.8
Total Number of Customers Surveyed: 100

FACTORS NO.OF CUSTOMERS PERCENTAGE

Myself 20 30%

Family Members 15 15%

Friends 22 22%

Relatives 5 5%

Advertisements 34 34%

Others 4 4%

Total 100 100%

Interpretation:

From the table, we can observe that 20% of the people are decided

to purchase the car on themselves, 15% of the people are influenced by

family members, 22% of the people are influenced by relatives, 34% of the

people are influenced by advertisements and rest of the people are

influenced by other factors. The analysis shows that major portion of the

people are influenced by advertisements.

 34%
35%
30%
30%
22% Myself
25%
Family Members
20%
15% Friends
15% Relatives
Advertisements
10%
5% 4% Others
5%

0%
PERCENTAGE

IMPACT OF SHAHRUKH KHAN ON SALES

TABLE: -6.9

Total number of Customers surveyed: 100

 NO. OF
IMPACT PERCENTAGE
CUSTOMERS

Yes 56 56%

No 44 44%

Total 100 100%

Interpretation:

From the table, we see that 56% of the people say that Sharukh

Khan has the impact of increase in sales whereas 44% of the people say

that Sharukh Khan has no impact of increase in sales.

44%
56%
 GOOD VALUE

TABLE:- 6.10

Total number of Customers surveyed: 100

NO. OF
GOOD VALUE PERCENTAGE
CUSTOMERS

Yes 92 92%

No 8 8%

Total 100 100%

Interpretation:

From the table, we observe that 92% of the people feel that Hyundai

products give Good Value for money whereas 8% of the people feel that

Hyundai products do not give Good Value for money.

 92

100

80

60

40 8

20

0
Yes No
 PRICING OF THE CAR

TABLE:- 6.11

Total number of Customers surveyed: 100

NO. OF
PRICING LEVEL PERCENTAGE
CUSTOMERS

Excellent 5 5%

Good 64 64%

Satisfactory 31 31%

Not satisfied - -

Total 100 100%

Interpretation:

From the table, we observe that 5% of the people feel that the Price

of the car is Excellent, 64% of the people feel that it is Good, 31% feel it is

satisfactory and none of them are dissatisfied with the Price of the

product. The Highest % of the people feel that the Price of the car is Good.
 Not Satisfied Excellent

Satisfactory

Good
 SUPERIOR TO COMPETITORS CARS

TABLE:-6.12

Total number of Customers surveyed: 100

SUPERIOR CUSTOMERS PERCENTAGE

Yes 89 89%

No 11 11%

Total 100 100%

Interpretation:

From the table, we can observe that 89% of the people say that

Santro car is superior to competitors cars and 11% says that it is not.
100
89
90
80
70
60
50
40
30
20
11
10
0
Yes No
 SUMMARY

The market of Hyundai cars (Santro, Accent and Sonata) is growing

at rapid speed. Hyundai being one of the dominating and leading players

in passenger car market is expected to attract significant attention among

the investors.

In this Automobile segment there has been heightened competition

with other leading players like Maruti, Honda, Ford and many others.

As there was competition in small car industry, there was reduction

in prices of the cars and modifications done with the existing product (e.g.,

Santro to Santro Xing) and were introduced in the market. Hyundai small

car segment has occupied second position in the market share.

Majority of the people have informed Brand Awareness toward

Santro. Most of the customers are very much satisfied with the services

offered by the company while few of them are not satisfied due to minor

problems of the car.

Many of the students rated the Brand Awareness as excellent very

few of them have rated as satisfactory.

All the respondents are very happy with the warranty period given

for the cars by the company but many of them have complaints with the

mileage and seating comfort of the car.

 Many of the respondents have stated that the prices charged on

services are high when compare to other company’s services (e.g. Maruti)

Finally the customers are very happy about Brand Awareness

toward Santro.
 FINDINGS

The following details can be inferred after analysis with a simple size

of 100, which included customers, by questionnaire method to find out the

brand awareness towards Santro with reference to AY S HYUNDAI.

 Most of the customers relating to Hyundai belong to the category of

employees as they occupy 30% of the entire customers. The next to

them comes industrialists as they occupy 24% of the customers.

 Most of the customers have bought the car 2 years back.

 The promotional strategy of Hyundai is advertisement of which

electronic media and by press media are playing a vital role.

 Out of the models of Hyundai the most popular brand is Santro

because it is possessed by 45% of the customers.

 Most of the customers are aware of educational programs that are

being conducted by Hyundai to the maintenance of the car.

 Though the customers are having good awareness levels regarding the

programs being conducted by Hyundai, they are not attending the

programs because of various reasons.

 The customers find some problem’s regarding the mileage of Santro

while comparing with the remaining models.

 SUGGESTIONS

 Basing on the survey findings and analyzing the attitudes of

respondents, the following suggestions can be given regarding the

Brand Awareness towards Santro.

 The company has to pursue the complaints of the respondents about

the performance of the car’s engine. This suggestions has been given

basing on the complaints of customers regarding its problems like low

mileage.

 Transaction and value based loyalty programs can be conducted.

 Making the Driving seat and Passenger seat more comfortable so that

the driver and passengers could have a comfortable drive.

Analyzing the complaints given by many customers regarding

uncomfortable seats has made its suggestion.

 QUESTIONNAIRE

(With Reference to Hyundai Santro)

1. NAME OF THE RESPONDENT:

2. ADDRESS OF THE RESPONDENT:

3. PHONE NO:

4. AGE GROUP:

(a) 25-45 (b) 45-65 (c) 65 & above

5. GENDER:

(a) Male (b) Female

6. RESPONDENTS QUALIFICATION: _________________________

7. OCCUPATION:

(a) Business b) Professional (c) Student (d) Employee

8. INCOME PER ANNUM:

(a) < Rs. 2,00,000/- b) Rs. 2,00,000/- to Rs. 4,00,000/-

(c) Rs. 4,00,000 and above

9. FAMILY SIZE:

(a) 1-2 b) 3-5 c) 5& above

10. PURPOSE OF PURCHASE OF THIS CAR:

(a) Utility (b) Necessity (c) Status

11. WHAT INFLUENCED TO BUY SANTRO

a) Styling b) Pricing (c) Brand Image

(d) Performance (e) Publicity

12. WHO INFLUENCED YOU TO PURCHASE THE CAR?

(a) Myself (b) Family Members c) Friends

(d) Relatives (e) Advertisements (f) Others

13. WHY DID YOU PURCHASE ONLY SANTRO INSTEAD OF ANY

OTHER SMALL CAR?

(a) Quality b) East to drive

(c) Comfort d) Technically good

14. DO YOU FEEL THAT BRAND AMBASSADOR SHARUKH KHAN

HAS AN IMPACT ON THE INCREASE IN SALES?

(a) Yes (b) No

15. DO YOU FEEL THAT HYUNDAI PRODUCTS GIVE GOOD VALUE

FOR MONEY?

(a) Yes (b) No

16. HOW DO YOU FEEL THE PRICING OF THE CAR?

(a) Excellent b) Good

(c) Satisfactory (d) Unsatisfactory

17. DO YOU FEEL THAT SANTRO IS SUPERIOR TO COMPETITORS

CARS IN THIS SEGMENT?

(a) Yes (b) No

18. DO YOU RECOMMEND SANTRO TO YOUR FRIENDS AND

RELATIVES?

(a) Yes (b) No

19. YOUR COMMENTS/SUGGESTIONS IF ANY?

__________________________________________________________________

__________________________________________________________________
 BIBLIOGRAPHY

• MARKETING MANAGEMENT

PHILIP KOTLER

• COMPANY BROUCHERS & MANUALS

• MAGAZINES:

• OVERDRIVE

• BUSINESS TODAY
 CONTENTS

Page No.

CHAPTER – 1 1-10

 Introduction
 Importance
 Scope
 Research Methodology
 Object
 Limitations

CHAPTER – 2 11-32

INDUSTRY PROFILE
 History of the Automobiles
 Automobiles History in World Scenario
 Automobiles History in Indian Scenario
 Automobiles History 1967

CHAPTER – 3 33-50

COMPANY PROFILE
 History in construction field
 Hyundai motor India Limited

CHAPTER – 4 51-63

 Theoretical Frame Work

CHAPTER – 5 64-87

 Data Analysis and Interpretation

CHAPTER – 6 88-91

 Summary, Findings & Suggestions

CHAPTER – 7 92-94

 Annexure

CHAPTER – 8 95
 Bibliography

CHAPTER – 1
o Introduction
o Importance
o Scope
o Research Methodology
o Object
o Limitations
CHAPTER – 2
INDUSTRY PROFILE
 History of the Automobiles
 Automobiles History in World Scenario
 Automobiles History in Indian Scenario
 Automobiles History 1967
CHAPTER – 3
COMPANY PROFILE

• History in construction field

• Hyundai motor India Limited
CHAPTER – 4
o Theoretical Frame Work
CHAPTER – 5
 Data Analysis and Interpretation
CHAPTER – 6
 Summary, Findings & Suggestions
CHAPTER – 7
• Annexure
CHAPTER – 8
 Bibliography
 ACKNOWLEDGEMENT

At the outset, I would like to express my gratitude to

Dr. S. SARABANDHI, Director, Pydah college (P.G.courses), for

permitting me to take up this project at AYS HYUNDAI

AUTOMOBILE PVT. LTD.

I owe my special thanks to Mr. RAMA RAO, Sales Manager,

for providing all the facilities and guiding me where every necessary.

My sincere thanks to my guide Mrs. LUBZA NIHAR, Faculty

Member, for her invaluable co-operation and suggestions at every

stage of this project without whom this would not have been

completed.

I am grateful to my parents and all my friends for their help and co-
operation.

(S. SRINIVASA RAO)

 DECLARATION

I hereby declare that this project work entitled “BRAND

AWARENESS TOWARDS SANTRO with Reference to AYS

HYUNDAI AUTOMOBILES PVT. LTD., VISAKHAPATNAM”

written & submitted me towards partial fulfillment of my Masters

Degree in Business Administration under the guidance of

Mrs. LUBZA NIHAR is a original work done by me. This work has

not been previously submitted by any one else for the award of any

other degree or diploma in any other Institute or University.

(S. SRINIVASA RAO)

BRAND AWARENESS TOWARDS SANTRO
With special reference to
AYS HYUNDAI AUTOMOBILE PVT. LTD., VISAKHAPATNAM

A Project Report Submitted to Andhra University,

Visakhapatnam, in Partial fulfillment for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

By
Mr. S. SRINIVASA RAO

Under the guidance of

Mrs. LUBZA NIHAR. M.Com.M.Phil.,

FACULTY MEMBER

DEPARTMENT OF MANAGEMENT STUDIES

PYDAH COLLEGE (P.G.COURSES)
(Affiliated to Andhra University)
VISAKHAPATNAM
2003-2005
 CERTIFICATE

This is to certify that the project entitled “BRAND

AWARENESS TOWARDS SANTRO with Reference to AYS

HYUNDAI AUTOMOBILES PVT. LTD., VISAKHAPATNAM” is a

bonafide work done by Mr. S. SRINIVASA RAO in partial

fulfillment of her MASTER OF BUSINESS ADMINISTRATION,

Department of Management Studies, Pydah College of P.G. Courses,

Affiliated to Andhra University.

Place : Visakhapatnam

Date : Mrs. LUBZA NIHAR

Faculty Member
 CONTENTS

Page No.

CHAPTER – 1 1-10

 Introduction
 Importance
 Scope
 Research Methodology
 Object
 Limitations

CHAPTER – 2 11-36

INDUSTRY PROFILE
 History of the Automobiles
 Automobiles History in World Scenario
 Automobiles History in Indian Scenario
 Automobiles History 1967

CHAPTER – 3 37-54

COMPANY PROFILE
 History in construction field
 Hyundai motor India Limited

CHAPTER – 4 55-67

 Theoretical Frame Work

CHAPTER – 5 68-91

 Data Analysis and Interpretation

CHAPTER – 6 92-95

 Summary, Findings & Suggestions

CHAPTER – 7 96-98

 Annexure

CHAPTER – 8 99
 Bibliography