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Automobile industry history: in the year 1769, a French engineer by the name of Nicolas j. could not invented the first automobiles to run on road. This automobile, in fact was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver evans was the first to design a steam engine driven automobile in the U.S.
Automobile industry history: in the year 1769, a French engineer by the name of Nicolas j. could not invented the first automobiles to run on road. This automobile, in fact was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver evans was the first to design a steam engine driven automobile in the U.S.
Automobile industry history: in the year 1769, a French engineer by the name of Nicolas j. could not invented the first automobiles to run on road. This automobile, in fact was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver evans was the first to design a steam engine driven automobile in the U.S.
ON "EFFECT OF ADVERTISEMENT ON CUSTOMER OF MARUTI SUZUKI IN SURAT CITY" AT "KATARIA AUTO MOBILE LTD" SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD
SUBMITTED BY Mr. DOBARIYA SANDIP (Enrollment No.137060592006)
C. K. PITHAWALLA INSTITUTE OF MANAGEMENT SURAT - 395007 2013 2015
C. K. Pithawalla Institute of Management, Surat Institute Certificate This is to certify that Mr. DOBARIYA SANDIP has prepared the project report entitled A STUDY ON EFFECT OF ADVERTISEMENT ON CUSTOMER OF MARUTI SUZUKI IN SURAT CITY under my guidance. The project embodies the result of his work & is of the standard expected of a candidate for the successful completion of master of business administration degree.
Name of Faculty
(Assistant Professor) The project is forwarded for further evaluation to Gujarat Technological University, Ahmadabad. Place: Surat Date: Signature (Director)
STUDENT DECLARATION I MR.DOBARIYA SANDIP hereby declare that the project entitled A STUDY ON EFFECT OF ADVERTISEMENT ON CUSTOMER OF MARUTI SUZUKI IN SURAT CITY undertaken at KATARIA AUTOMOBILE under the guidance of DR.FARZANA is submitted for partial fulfillment for award of the degree of master of business administration to Gujarat technological university Ahmadabad, is my original work carried out during 6 weeks and not submitted for the award of any other degree of other similar titles or any other organization or university by any person.
Date: Place: signature of student
ACKNOWLEDGEMENT
It is a great pleasure to have this opportunity to express my wholehearted sense of gratitude to DR.FARZANA for their valuable guidance for the preparation of this dissertation. It is due to his encouragement and practical suggestion this dissertation work should be finished within due period.
I take an opportunity to acknowledge Hon. Director of C.K.PITHAWALLA INSTITUTE OF MANAGEMENT and all staff of college for making me available all facilities in fulfilling the requirement for the project work.
I would like to extent my deep sense of gratitude to those entire Respondents who have filled my questionnaire.
Last but not least I would like to extent my deep sense of gratitude to my friends and all those who directly or indirectly help me during the project work.
MR. RAJESH MANGUKIYA
INDEX SR NO. TOPIC PAGE NO. 1. Company Certificate 2. Institute Certificate 3. Student Declaration 4. Acknowledgement 5. Executive summery 6. Industry Profile 7. Company profile 8. Conceptual Framework 9. Literature Reviews 10. Research Methodology 11. Data Analysis & Findings 12. Recommendations & Conclusion 13. Bibliography 14. Annexure
INDUSTRY PROFILE
Global: Automobile industry history: in the year 1769, a French engineer by the name of Nicolas j. could not invented the first automobiles to run on road. This automobile, in fact was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver evans was the first to design a steam engine driven automobile in the U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first. To invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of road made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distance. The automobile industry finally came of age with henry ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly line of his car factory. The several methods adopted by ford, made the new invention (that is, the car) popular amongst the rich as well as the masses.
According the history of automobiles industry U.S., dominated the automobiles markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the automobile industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S. automobile industry was flooded with foreign automobile companies, especially those of Japan and Germany. The current trends of the global automobile industry revel that in the developed countries the automobile industries are stagnating as a result of the drooping car markets, whereas the automobiles industry in the developing nations, such as, India and Brazil, have been consistently registering higher growth rates every passing year for their flourishing domestic automobiles market.
The automotive industry designs, develops, manufactures, market, and sells the worlds motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide.
In 2011, a total of 79.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-pacific 19.4 million in USA and Canada, 4.4 million in Latin American, 2.4 million in the Middle East and 1.4 million in Africa. The market in North America and Japan were stagnant, while those in South America and other part of Asia grew strongly. Of the major market, china, Russia, Brazil, and India saw the most rapid growth.
About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in china. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.
National:
An embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1953, the Government of India and the private sector lunched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment of MarutiUdyog. A number of foreign firms initiated joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.
Indian automobile industry has growth leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being in two wheelers and in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million unites it may not be an exaggeration to say that industry in coming years will soon touch a figure of 10 million units per year. The automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of automobile industry cannot be overlooked in Indian economy. All kinds of vehicles are produced by the automobile industry.
State: Gujarat automobile industry has growth continuously increasing. Low cost, low risk and high efficiency Auto cars and car component units set its pace in Gujarat. The Nano Car, Sanand and CEAT Companys new radial tyre plant in Halol are evident to fact that the Automobile sector is bound to emerge as significant contributor to massive employment generation. Even, General Motors Car manufacturing unit at Halol indicates Auto Hub Growth Sector. Nano car manufacture plant of Tata Motors is situated here. By 2014 American automobile company Fordand French auto giant Peugeot will also start manufacturing at Sanand. Maruti is also scouting for land to set up its manufacturing facility in Sanand. Similarly Hero and Bajaj have hinted their intentions to set up manufacturing facilities in Sanand.
Rajkot is the hub of the automobile parts manufacturing industry. Rajkot based Atul Auto is leading manufacturers of 3 wheeler commercial vehicles, goods carriers, passenger carrier, pickup vehicle. Asia Motor Works (AMW) has heavy duty truck manufacturing plant near bhuj.AdanisMundra port has Auto export terminal. Thousands of Maruti Suzuki cars have been already exported from India through this facility. Gujarat has leveraged its location advantages, with relatively low transaction costs for accessing markets in the western and northern India. Good rail connectivity is slated to improve significantly with the opening of the dedicated freight corridors to Dahej and NhavaSheva passing through large parts of Gujarat. There are several reasons why Gujarats emergence as an auto hub is a positive for Indias economy. First, the auto sector is a mother industry and for every direct job in the OE, minimum 5-7 indirect jobs are created in tier I, II and III, not including jobs for drivers, service station attendants and mechanics that form a well paying proposition for many relatively less skilled, but aspirational Indians. Secondly, importance of transport equipment, which includes all types of motorised vehicles, in Indias trade has been increasing. Its share in Indias exports rose from 2.3% in 2000-01 to 7.8% in April-February 2010-11; while the corresponding share for imports soar from 1.4% to 2.5%. The emergence of Gujarat as an auto hub is expected to assist in Indias external trade in transport equipment as exports are likely to constitute a significant proportion of auto sectors output from Gujarat. Current trends
BOOM IN INDIAN AUTOMOBILE INDUSTRY
Today, vehicles are in great demand between all segments of society. With huge demand of vehicles, automobile industry is the fastest growing industry all over the world. Automobile industries play a vital role in economic development of any country.
Every week a new model of car or bike has been launching to accomplish the requirement of buyers. Various automobile manufacturing companies are in the market, which provide a lot of vehicle according to the requirements of different segment of peoples. Automobile companies are offering various products according to users budget. Gone are the days, when one had to wait for their dream vehicles. Today, it is not difficult to buy a dream vehicle because of various financial institutions. Many banks are providing loan and converting your dream into reality. Buyer needs to pay some extra money as interest rate for that finance amount. This amount depends on various factors such as buyers credit past, finance amount, loan period and the term and conditions of financial institution.
If consider the Indian automobile industry, there are various companies, which are offering all type of vehicles in the market. Automobile manufacturing companies are offering different cars, two wheelers, three wheelers, commercial vehicles, sport vehicles and other utility vehicles according to the users requirement. As we all know, cars have become a need for todays world. Automobile companies are offering various premium cars to entry-level cars of the customers. There are various car-manufacturing companies in Indian market. Some giants in manufacturing of cars are Audi, Ford, Fiat, Honda, Hyundai, Skoda, Maruti, BMW, Mercedes, Mahindra & Mahindra, Hindustan Motors and General Motors. Some awaited car models, which are about to launch in the year 2008 are Fiesta 1.4 SXiDuratorq, Opel GT, Aveo U-VA, Getz Next Generation, Logan, Rhino Rover, Audi Q7, Montero, Outlander, Grandis, Santa Fe and Roomster. Tata motors also working to produce their low budget car till the July 2008. All the companies are offering various attractive models in different colour and designs. In two-wheeler industries, Hero Honda, Bajaj Auto, TVS Motors, Yamaha, Honda, Suzuki and kinetic motors are offering various motorcycles, scooters and scooterettes to the market. One can choose among the various models according to his need and budget.
In the initial years after independence Indian automobile industry was plagued by unfavourable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world.
Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon.
Some of the major characteristics of Indian automobile sector are:
Second largest four-wheeler market in the world.
Fourth largest commercial car market in the world.
11th largest passenger car market in the world expected to become the world's third largest automobile market by 2030, behind only China and the US.
COMPETITIEVE FACTORS OF AUTOMOBILE INDUSTRY OF INDIA
The automotive sector is one of Indias largest and fastest growing manufacturing sectors. It is ranked the 11th largest passenger car producer in the world. In the category of motorcycles and scooters, India is ranked 1st and 2nd respectively. With Indian increasingly liberalizing its market place, many new joint ventures evolved, resulting in close to 24 global auto manufacturers setting up their shop in India.
Competition in India
As a result, competition in Indias automobile had been heating up in the recent years. Many global players in the automobile have already set up presence in India. Most of them are through tie-ups with dominant local players, while some are done entirely on their own.
In the absence of strong competition in the past, the local car manufacturer MarutiUdyog Ltd (MUL) has virtually dominated the Indian automotive market in the passenger segments since the 1980s. As the automotive manufacturing sector rapidly evolved through the dynamics of open market and deregulation, many new joint ventures (both technical and financial) were formed between local players with leading global manufacturers. In 1982, MUL, then a wholly government-owned company, signed up a collaboration agreement with Suzuki of Japan to establish the volume production of contemporary models. Subsequently, the licensing regime was scrapped in 1993 paving way for 17 new ventures, of which 16 are now manufacturing cars. Since then; there has also been an emergence of new competition for higher value segments of the passenger car market. Hence, local players like MUL also began to face competition from new foreign carmakers. Ford entered the mid-range market with the icon model in April 1998, a move which was followed by Honda, Mitsubishi, Hyundai, and Daewoo. Other players, Hyundai and Daewoo, have since improved their share of the passenger car market with new models for the 4-wheelers segment; MUL/Suzuki dominates the automotive landscape holding a 33% share of the passenger car market in 2004-05. In the second place is Tata Motors, a local company, commanding 26% share, while Hyundai Motorranked third with 15% share and the rest split amongst close to 2 dozen other manufacturers.
For the 2-wheelers segment, it remains quite a local dominant game but global players also have obvious presence in the market. Major players in this segment include Bajaj Auto, TVS Suzuki, LML Limited, Hero-Honda Motors, Yamaha Motor India, Kinetic Engineering, Maharashtra Scooters Majestic Auto, Kinetic-Honda Motors, Royal Enfield (India), Scooters (India), Greaves Ltd. Foreign manufacturers also have presence in India through their 100% owned subsidiaries, e.g. Honda Motorcycle, Scooter India Pvt. Ltd. M/s Honda Motors co., Japan, Yamaha Motors Japan. The largest player is Hero Honda Motors, accounting for 40% of market share, followed by Bajaj Auto and TVS Motor, which account for 27% and 18% respectively.
Competition in the International Market
Besides on the competition observed amongst all global players in the domestic Indian market, India as an automotive manufacturing country is also pitting against other competitors in the international market. In terms of exports of automobile, India is ranked 29 th , while chine, the other huge automotive factory ranked 17th. For exports of auto parts, India was 26 th , while China came in 11th. The top country for exports of automobile and auto parts was Germany. History of Maruti Suzuki India LTD
Maruti Suzuki India Limited, formerly MarutiUdyog Limited, is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the Company include facilitation of pre-owned car sales, fleet management and car financing. The Company has four plants, three located in Palam Gurgaon Road, Gurgaon, Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana. During the fiscal year ended March 31, 2009, the Company produced and sold over seven million cars, and exported more than 500,000 cars. The Company's subsidiaries include Maruti Insurance Business Agency Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Solutions Limited, Maruti Insurance Agency Network limited, Maruti insurance agency service limited and Maruti Insurance Agency Logistics Limited. The Companys subsidiaries are engaged in the business of selling motor insurance policies to owners of Maruti Suzuki vehicles.
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia.
Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India. On 17 September, 2007, MarutiUdyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi.
MarutiUdhyog Limited is India's largest automobile company. Its main factory is situated in Gurgaon district, Haryana. The company, a joint venture with of Government of India with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. The first cars rolled out for sale on 14th December 1983, (the Company went into production in a record 13 months), marking the beginning of a revolution in the Indian automobile industry.We were born as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, our product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is our mission to motorise India. Our parent company, Suzuki Motor Corporation, has been a global leader in mini and compact cars for three decades. Suzuki's technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. The same characteristics make our cars extremely relevant to Indian customers and Indian conditions. Product quality, safety and cost consciousness are embedded into our manufacturing process, which we have inherited from our present company. Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy 'smaller, fewer, lighter, shorter and neater'
From the Japanese work culture we imbibed simple practices like an open office, a common uniform and common canteen for everyone from the Managing Director to the workman, daily morning exercise, and quality circle teams.
On 14th December, 1983, first Maruti 800, India's iconic car rolled-off the assembly line at company's Gurgaon plant. Late Mrs. Indira Gandhi, the then Prime Minister of India, handed over keys for this car to the first Maruti customer. Since then, Maruti Suzuki has produced and sold around 75 lakh (7.5 million) cars to address the needs of customers across segments. Maruti's current efforts mirror the government's vision to put India in the international map for producing compact small cars. All over the world, Suzuki is acknowledged for its know-how in producing small cars. The governments renewed focus on promoting small cars, offers a major opportunity for Maruti Suzuki.
The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the decade ending 1983. In 1993, this figure reached a number of 1, 96,820. Maruti's figures are a different story altogether. Maruti reached a total production of one million motorcars in March 1994, becoming the first Indian company to cross this milestone and crossed the two million mark in 1997.For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a profit before Tax of US$ 244 million. During the year, Maruti produced over 350,000 vehicles, out of which 26,000 were exported. Through the years Maruti has provided world-class Japanese technology, suitably adapted to Indian conditions and Indian car users.
The Maruti models on road now are :
Maruti 1000: Launched 1990. 1. Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in 2006. 2. Maruti Esteem: Launched 1994 MarutiWagon-R:Launched 1999 Modified 2006. 3. MarutiBaleno: Launched 1999. Production ended late 2006/early 2007. 4. Maruti Alto: Launched 2000. Currently the largest selling car in India. 5. Maruti Grand Vitara: Launched 2003. 6. Maruti Grand Vitara XL-7. 7. Maruti Versa: Launched 2003. 8. Maruti Swift: Launched 2005. 9. Maruti Zen Estilo Launched in 2006. 10. Maruti Swift Diesel Launched in 2007. 11. Maruti Suzuki SX4 Launched in May 2007. 12. Maruti Grand Vitara Sports Utility Vehicle Launched in July 2007. 13. Maruti Ritz launched in 2009. 14. Maruti Suzuki Ertiga CNG 2013. 15. Maruti Suzuki swift sport 2013. 16. Maruti Suzuki XA Alpha 2014.
COMPANY PROFILE
About company Kataria automobiles Ltd. GENERAL INFORMATION
The KATARIA GROUP was founded by Mr. ShobhagmaljiKataria in the year 1956 and has grown to become one of the biggest Transport Operators in India, having 60 branches. The Katarina group has since expanded its wings, by way of expansion and diversification in various sectors, the first being in 1984 with dealerships of LML 2 wheelers. It further expanded its wings to become one of the Most Trusted Brand for Maruti Car Dealership in 1996. Not stopping at its unclenched Automobile Growth, it further.
(An Authorized Dealer of Maruti Suzuki) The KATARIA GROUP was founded by Mr. ShobhagmalKataria in the year 1956 and has grown to become one of the biggest Transport Operators in India, having 60 branches. The Kataria group has since expanded its wings, by way of expansion and diversificationin various sectors, the first being in 1984 with dealerships of LML 2 wheelers. It further expanded its wings to become one of the Most Trusted Brand for Maruti Car Dealership in 1996. Not stopping at its unflinched Automobile Growth, it further acquired the dealership of TVS Two Wheelers in 2003
Today Kataria Automobiles, is one of the most trusted brands in the Automobile Dealership of MarutiSuzukiwith Showrooms in Ahmedabad, Surat, Navsari and Vapi Today the Kataria Group is proud to have a family of 2000 dedicated, satisfied and committed work force. The Group further has a satisfied customer base of more than 2, 00,000 happy families.
Kataria group has introduced, as one of the diversified business enterprise, with the operation in the spanning field, from transport to the telecom industry. Kataria started its operation and makes a name with the transport business and very soon become one of the largest fleet in the industry.
Than after Kataria group has take entry in automobiles industry, with a two-wheeler dealership in 1983. After that we were developed our business with four-wheelers dealership of Maruti Suzuki Ltd at DariapurDarwaja in Ahmedabad and it is the head-office of Kataria Automobiles Ltd. The last decade has been us growing and to be one of the largest dealer of Maruti Suzuki in India.
Now-a-days Kataria Automobiles has opened number of branches and Workshops as below given table.
CITY NUMBER OF SHOWROOMS NUMBER OF OUTLATES NUMBER OF WORKSHOPS Ahemdabad 3 4 3 Surat 3 - 3 Bardoli 1 - - Navasari 1 - 1 Palanpur 1 - - Anand 1 - 1 Vapi 1 - 1 Mahesana 1 - - Valsad 1 - 1 Nadiad 1 - -
We are ISO certified company with Quality system-ISO-9001-2000. We are one of the Maruti dealer in Gujarat during course of time we have grown as a company and having 2 Maruti Showroom. Two full-fledged workshop at Surat One at Varachha and another at Parle point and shortly we are opening third at piplod. J. D. Power Survey has rated us as No. 1 in CUSTOMER SATISFACTION amongst all India Maruti dealers. We have been awarded a prestigious PLANTIUM DEALERSHIP award for continuously three years.
Name Post Rohan Kataria DIRECTOR R.K. Kataria CHAIRMAN Ankur Jain C.E.O. Tejas Patel GM Bhavana Chauhan SM Rakesh Mishra INSO.MANAGER Navneet Sharma HR MANAGER
SHOWROOM ADDRESSES 1. KatariAutomobiles Ltd. Opp Apparel Park, Nr Khokra Bridge, Maninagar, Ahmadabad. 2. Kataria Automobiles Ltd. OppRajhans Theatre, Dumas Road, Piplod, Surat. 3. Kataria Automobiles Ltd. Plot No. 891, Opp. Hari Om Pava Mill, Near Ganesh SisodraChokdi, N.H.No. 8, Ganesh Sisodra, Navsari. 4. Kataria Automobiles Ltd. C-29, G.I.D.C, Vapi.
5. VISION & MISSION
VISION : Reliable service with sophisticated technology, to meet and exceed the customer requires. To be at the distribution service by prompt, quiche and ments. To be recognized as the most specialized group of professionals providing business service like marketing, supply chain and warehouse management services based on execellent reputation in quality, cost effectiveness and dependability
MISSION :
To help our client win by providing value added.Cost effective and comprehensive services in marketing, warehouse, supply chain, human resources and talent development arena worldwide. Be a globally preferred provider of India-centric supply chain services and solutions, and a leader in the India. Delight customer with quality service by setting new trends through innovation and technology Create service excellence in all business CORPORATE GOAL AND OBJECTIVES :
Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth Maruti created history by going into production in a record 13 months. On 14 December 1983, the then Prime Minister of India, Mrs. Indira Gandhi, released the first vehicle for sale by handing over the keys of a Maruti 800 to Mr. Harpal Singh of Delhi.
INTRODUCTION Advertising is a favorable representation of product to make consumer, customers and general public aware of product. It let the potential buyers, general public and end users to be aware and familiar with the brands and their goods and services. Before going on the importance of advertising, we would have an introduction to advertising first. Advertising can be define as a paid form of non professional but encouraging, complimenting and positively favorable presentation of goods and services to a group of people by an identified sponsor. It does not include distribution of free samples or offering bonuses, these are sales promotion. In simplest words advertising is introduction, to consumers and general public, of services and goods. Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action.
IMPORTANCE OF ADVERTISING
Effect of Advertising in Business From the business point of view, advertising not just optimizes sales and product promotion but the goodwill of the specific brand that is earned is an important asset. A well known brand not only has a good customer base but it is a great ground to introduce new products under the same banner. In such a case, there is a very high probability that people are going to purchase the new product out of curiosity. It is often said that reputation gained and maintained due to advertising helps out the business throughout the life time. The logic behind that is simple. When advertising creates awareness, people know about the product and when they known about the product, they pay attention to its newer advertisements and the probability that the person will buy the product will increase. To conclude the paragraph it can be said that advertising helps business gain loyal customers as well as a good platform in the entire market. Importance of Advertising in Marketing Apart from gaining a loyal customer base, advertising is often successful in marketing the brand and conveying financial details about the brand to the consumers. The pricing details often generate an interest and the process of money planning, starts ticking in the person's mind. Offers such a buy 2 get 1 free or discounts are introduced to the consumers successfully through advertising. Such offers result into a spurt of sales and are quite instrumental for clearance sales, new introduction sales, re-release sales, etc. Advertising thus, plays quite a comprehensive role in marking policies.
MERITS & DEMERITS OF ADVERTISING
Merits:
It increases the sales of the company. It makes the customers aware about the image of the company. It attracts new customers and creates brand loyalty in the previous customers. If a company introduces a new product in the market then the company can use advertising strategy to inform the customers.
Demerits:
It requires a lot of budget. It can create issues of under demand and under supply for the company and dislocates the demand and supply equilibrium for the company. It can also distort the mission of the company and the image of the company in the market through wrong concept in advertisements. Over advertisement of a company can create a fuss among the customers.
LITERATURE REVIEW
Advertising is to create understanding, liking, and selection of product or services. The most influencing theory in marketing and advertising research is attitude-towards-the-ad. However, the attitude that is formed towards the ad help in influencing consumers attitudes and perception toward the brand until their purchase intent (Goldsmith & Lafferty, 2002)
A study by Sharma (2007) finds that nowadays consumer is not easily swayed by a celebrity in an ad but he needs full fledge information about the product also, followed by brand name, overall appeal, and music/ jingle. Advertisements being endorsed by celebrities are found to be less attractive and that the use of celebrities may not change the buying behavior of consumers significantly.
According to Liebeck (1998) people are now more knowledgeable. They are truly the internet generation, and get their news and information primarily from television. The television medium is the most attractive and important place to advertise. Most of the young people remain glued to the television and enjoy what they see. As a wide range of products and services are consumed or used by children, many companies tend to target them (Chandok, 2005).
Focus their attentions on the psychology side of advertising and they indicate how to use peoples emotions to get their attention and increase their recall of the advertisements, in the hope that this will lead to the purchase of that product in some point in time (Elliott & Speck, 1998).
Heath, Brandt and Nairn (2006) in their research reveal that advertising associations attempt to accomplish three things: attention, brand awareness and persuasion. That is why the basic aim of advertising is to encourage people to buy things and creates awareness (Bijmolt et al., 1998).
According to the traditional attitude theory consumer, behavior is predicted from consumer attitude when consumers buy the brand, which they like the most. An attitude may be defined as acquire behavioral disposition (Smith & Swinyard, 1983).
Another component of effective advertisement that creates emotional response is the consumer ability to recall the brand ad (Goldsmith & Lafferty, 2002). Thus, the relative importance of brand recall will depend on the extent to which consumer makes product related decisions, which leads to the brand awareness (Keller, 2006)
Brand knowledge through advertisement helps in influencing brand salience in a way that the quantity and sparkle of the memories about the brand thought to be in buying situation that creates emotional response towards ads (Holden & Lutz, 1992).
Individuals uses cue in different buying situation for recalling the brand ad and greater chance of brand to be retrieved of any buyer, when different attributes are attached to the brand, which creates brand association (Romaniuk & Sharp, 2004).
Verdon etal (1968) while studying the relationship between advertising and aggregate demand found that advertising have a positive relation with aggregate demand.
The term advertising is defined as a paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience (Wells, Burnett & Moriarty, 2003, p.10).
To assess the effectiveness of advertisements, there have been two streams of research (Jeong, 2004). One stream of research focuses on the psychological aspects of advertising impact and the other focuses on the sales and market response aspects of advertising effects. These two different areas of advertising effectiveness research are discussed in the next sections.
The sales effect refers to the assessment of the capability of advertising to affect the sales volume and/or the market share, regardless of the possible influence of other variables. For Batra et al. (1995), the effectiveness of advertising should be considered for its effect on sales in the short term. This advertising performance measurement is based on the marginal theory (Chamberlin, 1948). The advertising is therefore regarded as an independent variable that can be combined with other marketing variables to have a certain effect on the dependent variable, i.e. sales. The aim is to seek the best combination of the determinants of the sales increase.
Music theory. The idea that music has the potential to enhance attention (stimulate awareness) and memory (recall) has been widely speculated and researched (Adorno 1941, 1976; Bartlett & Snelus, 1980; Bower & Bolton, 1969; Galizio & Hendrick, 1972; Hecker, 1984; Macklin, 1988; Rothschild, 1987; Rubin, 1977; Schulkind et al., 1999; Wallace, 1994).
Macklin (1988) found that messages that were sung in a produced, original jingle that sounded like a nursery rhyme produced the same recall from children as spoken messages. Bartlett and Snelus (1980) found that cued recall of lyrics of popular songs from 1921 (When Francis Dances With Me) to 1974 (Morning Has Broken) was higher in response to melodies than in response to titles. Schulkind, Hennis, and Rubin (1999) observed a correlation between music, emotion and autobiographical, long-term memory of older adults and songs from their youth when testing the Top 20 from 1935 (On Treasure Island) to 1994 (Thats The Way Love Goes). Some researchers have also observed the enhancement of recall by music. Rubin (1977) found that recall of information is improved when cued with the melody of a well known song (Star Spangled Banner). Wallace (1994) found that the melody of a song (using three ballads from The Frank C. Brown Collection of North Carolina Folklore) could facilitate recall of text by providing it with musical structure for learning and remembering. Serafine, Crowder, and Repp (1984), Serafine, Davidson, Crowder, and Repp (1986), and Crowder, Serafine and Repp (1990) suggested an integration effect where the melody or text of a song (using folksongs from Erdei) is better recalled with original text than with different text. These results suggest that music in ads has the potential to stimulate emotion, attention and recall but not all studies support this theory. Galizio and Hendrick (1972) did not observe that memory for verbal information was enhanced by presenting the information in the form of a song (the musical accompaniment of a guitar).
Shimp (1981) argued that attitude toward the ad (ATT A ) is an important mediator when a consumer makes a choice. Since then, musics potential to affect the consumers ad attitude has received some attention with conflicting results. The presence of music was shown to affect how a viewer feels when looking at print ads (Morris & Boone, 1998). Musical fit resulted in a better attitude toward the ad (North et al., 2004; Shen & Chen, 2006). Brooker and Wheatley (1994), however, reported no effect of music placement on attitude toward the ad. Likewise, Macklin (1988) reported no effect of music presence on attitude toward the ad with children.
Recall of the brand is obviously a primary consideration in the evaluation of the effectiveness of music in advertising. When the music fit, the message processing of the ad was enhanced (MacInnis & Park, 1991; North et al., 2004). Different music treatments (original and altered vocals, instrumentals, jingles, silence) did affect recall differently under varied conditions (Allan, 2006a; Olsen, 1995: Roehm, 2001; Wallace, 1991, 1994; Yalch, 1991). The presence or absence of music was shown to be both attention-getting (Park & Young, 1988) and distracting (Wheatley & Brooker, 1994). The placement (Brooker & Wheatley, 1994) or the presence of music (Macklin, 1988) was not observed to affect recall. Musical fit, however, was shown to stimulate better recall of brands (North et al., 2004; Shen et al., 2006).
PROBLEM STATEMENT Basic problem is To study Effect of advertisement on customer of MARUTI SUZUKI in Surat city
RESEARCH OBJECTIVES
To study effectiveness of advertisement. To know the factors of advertisement. To know the most effective media for advertisement. To know perception of customer about advertisement of maruti suzuki.
BENEFIT OF THE STUDY The project helpful to company to know whether their current Advertisement are effective or not. The project helpful to company to evaluate their products market position in Surat city. This study plays important role for the company to undertake development task. This study makes products progressive for the company. Company can known that what are the parameter consider by customer when they make to purchase.
RESEARCH DESIGN In my project, I have used to descriptive research design, as name suggests; the main objective is to describe something on effect of advertisement on customer of maruti suzuki project report. Research helped me to know an over view of marketing activity in maruti suzuki when customer buy and select it; I have contracted the respondent through personal interviews. I have also used exploratory research design to some extent in the beginning of my study. In this project the secondary and primary data are used in the research design in my project is appropriate.
SAMPLE DESIGN I have decided to make a sample survey and choice is non probability sampling, in non probability sampling the probability of inclusion of unit in the population in the sample is not known. For this research non random convenience sampling design is used. Target Population with Sampling frame & Size Target population for my research would be consumer of kataria auto mobile Sample size is 300. For this project, I have hypothetically assumed that the proper sample size would be around (250-350), that is way I have taken the sample size of 300. Time and space boundaries [when and where] The time duration for the completion of the project was 6 weeks. The location covered were Athwagate, Katargam, Varachha, Citylight, Udhna, etc in Surat city
DATA COLLECTION TOOLS Primary data collection: The main source of data for my research is questionnaire. Secondary data collection: The secondary data collected from the various sources are: Internet Websites Catalogs and broachers of company
DATA ANAYSIS TOOLS Software used for analysis: SPSS Microsoft excel
LIMITATIONS OF THE STUDY According to me following limitations can be prevailing in my report: Respondents might have felt hesitation in providing information related to their income; so, there can be some data that might questionable because of unwillingness of respondents to give right information. Sample selected may not represent whole population, as sample size selected is very small in proportion to population due to time and cost constraints. Even many of the respondents may give bias answer. The response given by respondents was not always accurate because the respondents gave the response according to their understanding.
Survey is time consuming process but the time to collect the data for research was very less.
Sometimes the respondents are not willing to fill the questionnaire and hence the resultant may not be correct.
Marketing researchers studies the behaviour that is rational. Very often, they do not express their feeling correctly what they think. In such cases their habitual, practice, preferences cannot be assessed correctly.
Gender
Particular Response Percentage Male 283 94.33% Female 17 5.67%
Interpretation: From the above diagram we can say that 100% of respondents are seeing the advertisement of kataria automobile car. Advertising is to create understanding, liking, and selection of product or services. Every company provides similar kind of car but lack of effective advertisement decrease the selling of firm. kataria automobile gives advertisement in television, newspaper, print media, internet, radio etc for increasing the awareness and likeness so increasing the selling of the firm.
0 20 40 60 80 100 120 Yes No See the advertisement of kataria automobile How frequently you see advertisement?
Particular Response Percentage Once a day 66 22% Twice a day 21 7% More than twice 17 5.67% Not regular 196 65.33%
Interpretation: From the above diagram we can say that 65.33 % respondents are not seeing the regular advertisement and 22 % respondents are seeing the advertisement once a day but 5.67 % respondents are seeing the advertisement more than twice in a day and 7 % respondents are seeing the advertisement twice a day. It means 196 customers are not seeing the regular advertisement out of 300. So company need to know the reason behind this and convert from not regular to once a day.
Once a day 22% Twice a day 7% More than twice 6% Not regular 65% Frequency
In advertisement of kataria automobile, which factors attract you most?
Interpretation: From the above diagram we can say that 49.67 % respondents are attracting because of information while 2.33 % respondents are attract because of celebrity. Nowadays consumer is not easily swayed by a celebrity in an advertisement but he/she needs full fledge information about the product also. Advertisements being endorsed by celebrities are less attractive and that the use of celebrities may not change the buying behavior of consumers significantly. And 21.67 % respondents are attracting because of music, 14 % respondents are attracting because of slogan 21.67 2.33 8 4.33 49.67 14 Factors used in the advertisement, 8 % respondents are attracting because of price and 4.33 % respondents are attracting because of discount.
Does repetition of the advertisement affects your opinion about the buying car?
Particular Response Percentage Yes 7 2.33% No 293 97.67%
Interpretation: From the above diagram we can say that 97.67 % respondents are said repetition of the advertisement does not affect his/her opinion about the buying car because he/she has full 2.33 97.67 Yes No Repetition of the advertisement affects your opinion about the buying car information about the car they want to purchase. While 2.33 % respondents are said repetition of the advertisement affects his/her opinion about the buying car.
Which media you like most for the advertisement of kataria automobile?
Particular Response Percentage Television 95 31.67% Newspaper 91 30.33% Magazine 12 4% Radio 14 4.66% Hoardings 29 9.67% Print media 23 7.67% Internet 36 12%
Television 32% Newspaper 30% Magazine 4% Radio 4% Hoardings 10% Print media 8% Internet 12% Media you like most for the advertisement
Interpretation: From the above diagram we can say that 31.67 % respondents are like television for the advertisement because most of people get their news and information primarily from television. And 30.33 % respondents are like newspaper for the advertisement of kataria automobile 12 % respondents are like internet because use of internet is increase day by day while remaining respondents like hoardings, print media, radio and magazine. So we can say that the television medium is the most attractive and important place to advertise.
From where do you get information about the new car?
Particular Response Percentage Television 124 41.34% Newspaper 67 22.33% Magazine 7 2.33% Internet 36 12% Peers(friends/family) 33 11% Hoardings 19 6.33% Radio 14 4.67%
Interpretation: From the above diagram we can say that 41.34 % respondents get information about the new car from the television and above we discuss, people get their news and information primarily from television and other reason is visual advertisement and also a music & jingle because it attract more than other media. And 22.33 % respondents get information about the new car from the newspaper because people need full information about the new car so they prefer newspaper for it. 12 % respondents are get information about new car from the internet because use of internet is increase day by day and 11 % respondents are get information from the peer (friends/family) while remaining respondents are get information about the new car from the hoardings, radio and 2.33 % respondents get information from the magazine because it is not easily available at everywhere.
From which media, usually you seen an advertisement for kataria automobile?
Particular Response Percentage Television 118 39.34% Newspaper 129 43% Magazine 7 2.33% 0 5 10 15 20 25 30 35 40 45 Get information about the new car Internet 22 7.33% Hoardings 13 4.33% Radio 11 3.67%
Interpretation: From the above diagram we can say that 43 % respondents are usually seen advertisement from newspaper because people need full information about any product or services and company provides full information about the product/services in the newspaper. While 39.34 % respondents are usually seen advertisement from television because it is primarily sources of information and news for the most of people and also company increase their awareness and likeness through it. And remaining respondents are usually seen advertisement from internet, hoardings, radio and magazine.
Is the advertisement of maruti suzuki car necessary for you to purchase?
39.34 43 2.33 7.33 4.33 3.67 Usually you seen an advertisement Particular Response Percentage Yes 287 95.67% No 13 4.33%
Interpretation: From the above diagram we can say that 95.67 % respondents are said advertisement of maruti suzuki car is necessary for his /her, purchase because it is to create understanding, liking, and selection of product or services and also provide the full information regarding the product/services. While 4.33 % respondents are said advertisement of maruti suzuki car is not necessary for his/her, purchase.
0 20 40 60 80 100 Yes No Advertisement is necessary for you to purchase What comes in your mind when you see the advertisement of kataria automobile?
Particular Response Percentage Colour 37 12.33% Slogan 107 35.67% Information 33 11% Theme 89 29.67% Music 34 11.33%
Interpretation: From the above diagram we can say that 35.67 % respondents are said slogan comes in their mind when they see advertisement of kataria automobile while 29.67 % respondents are said theme comes in their mind when they see advertisement of Chevrolet and 11.33 % respondents are said music comes in their mind when they see advertisement because company gives advertisement in television for increasing the liking and awareness about the new product so they are doing focus on slogan, theme and music. And 12.33 % respondents are said colour comes in their mind when they see advertisement because company use red, white and silver colour for the most of advertisement and 11.33 % respondents are said information comes in their mind when Colour 12% Slogan 36% Information 11% Theme 30% Music 11% What comes in your mind they see advertisement of kataria automobile because company provide little information in the advertisement.
Findings
After going through the entire project and the collected data, I found that: 100% of respondents are seeing the advertisement of maruti suzuki car. Because advertising is create understanding, liking, and selection of product or services.
Most of respondents are not seeing the regular advertisement and 22 % respondents are seeing the advertisement once a day.
49.67 % respondents are attracting because of information. And 21.67 % respondents are attracting because of music.
Most of respondents are said repetition of the advertisement does not affect his/her opinion about the buying car because he/she has full information about the car they want to purchase.
31.67 % respondents are like television for the advertisement and 30.33 % respondents are like newspaper for the advertisement of kataria automobile 41.34 % respondents get information about the new car from the television and other reason is visual advertisement and also a music & jingle because it attract more than other media.
22.33 % respondents get information about the new car from the newspaper because people need full information about the new car so they prefer newspaper for it. And 2.33% respondents get information from the magazine because it is not easily available at everywhere.
43 % respondents are usually seen advertisement from newspaper because people need full information about any product or services and company provides full information about the product/services in the newspaper.
39.34 % respondents are usually seen advertisement from television because it is primarily sources of information and news for the most of people and also company increase their awareness and likeness through it.
Most of respondents are said advertisement of maruti suzuki car is necessary for his /her purchase.
35.67 % respondents are said slogan comes in their mind when they see advertisement of kataria automobile Suggestions
Advertisement should be made with keeping the determinants of effectiveness in mind.
Advertisement should be according to the product and its suitability with different age groups.
Investment in advertisement should be made with great care of media of advertisement and type of advertisement.
Advertisers should develop new and more effective ways of advertisement.
Media should be selected according to the choice of customer.
To give more attention in making the advertisement to make it effective for the sale of car.
To give attention on the weak media of advertisement so that the consumers comes to know about the product.
It should be attractive one so that people are attracted toward the advertisement.
CONCLUSION From my study of customers of Surat city, I can interpret that most of respondents are attracting because of information while some respondents are attract because of celebrity in this study. Nowadays consumer is not easily swayed by a celebrity in an advertisement but he/she needs full fledge information about the product also. Advertisements being endorsed by celebrities are less attractive and that the use of celebrities may not change the buying behavior of consumers significantly. And repetition of the advertisement does not affect his/her opinion about the buying car because he/she has full information about the car they want to purchase. And respondents are like television for the advertisement because most of people get their news and information primarily from television. So we can say that the television medium is the most attractive and important place to advertise. People get information about the new car from the newspaper because they need full information about the new car so they prefer newspaper for it.
Bibliography Books: Marketing Research -Beri G.C. -TaTa Mc Graw-Hill. Marketing Management(13 th edition) Kotler Philip - PEARSON. Business Research (9 th edition) - S.Schindler, Donald R. Cooper & Pamela - TaTa McGraw-Hill.
Internet links and websites: en.wikipedia.org 15.6.13 www.chevrolet.co.in http://hal-hec.archives-ouvertes.fr/hal-00786782 - 17.7.13 http://deepblue.lib.umich.edu/bitstream/handle/2027.42/1025/84827.0001.001.pdf;jsessionid=A1 E4625169E682347340FECEE25E66D3?sequence=2 11.7.13
Magazines and newspaper: Advertisement express
Company: Company broachers and other supportive documents. Company customer directory and personal information.
Annexure C.K.PITHAWALLA INSTITUTE OF MANAGEMENT Dear Respondent, I am studying at C.K.Pithawalla Institute of Management, Surat conducting a survey on Effect of advertisement on customer of maruti suzuki in Surat city. I would be grateful if you could answer the Questionnaire below. The views conveyed by you will be used for my academic purpose only. Answer for personal queries will be kept confidential. I thank you for sparing your valuable time and for co-operation in this Endeavour. Thank you. Yours Faithfully,
Questionnaire 1. Do you see advertisement of ? Yes No 2. How frequently you see advertisement? Once a day Twice a day More than twice Not regular 3. In advertisement ofevrolet Ch, which factors attract you most? Music Celebrity Price Discount Information Slogan 4. Does repetition of the advertisement affects your opinion about the buying car? Yes No 5. Which media you like most for the advertisement of Chevrolet? Television Newspaper Magazine Radio Hoardings Print media Internet
6. From where do you get information about the new car? Television Newspapers Magazines Internet Peers (friends/family) Hoardings Radio Other_____________ 7. From which media, usually you seen an advertisement for Chevrolet? Television Newspapers Magazines Internet Peers (friends/family) Hoardings Radio Other_____________ 8. Is the advertisement of Chevrolet car necessary for you to purchase? Yes No 9. What comes in your mind when you see the advertisement of Chevrolet? Colour Celebrity Slogan Information Theme Music 10. Please give your suggestion ................................................................................................................................................ ....................................................................................................................................