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EXECUTIVE SUMMARY
The aim of marketing is to meet and satisfy the needs and wants of the customers.
India has long-term potential to become a significant vehicle market. It has huge
population of nearly one billion people (of which 150-250 million are middle class),
and a current vehicle population of 3.5 million (equivalent to only 3.4 cars per 1000
people).
Prior to the early 90s there were only four car companies manufacturing and selling
cars in India. Foreign investment was effectively banned and foreign technology
transfers were subject to government approvals. By 1993 the Indian government
delicensed the Indian car industry, which eased other foreign auto manufactures entry
into the market first under joint partnerships, then wholly owned subsidiaries.
Currently, India is in the midst of an economic-recovery where vehicle sales rose 47
percent to 73,000 units in March 2000, up from 49,410 units in March 1999.
Indian auto market is booming the auto manufacturers from all over the world are
attracted by indian market for both,manufacturing and sell cars to indian and export
market.
Making the right choice while buying a used car is very important. Maruti Suzuki,
India's favorite car company, understands you concerns regarding quality,
documentation and value for money. That is why we ensure that the used car you buy
from us has never had an accident and is free from defects or legal hassles. What you
get is a car that is optimized for trouble-free performance and therefore needs
minimum maintenance. Of course, all this is possible only because of Maruti Suzuki's
direct involvement, which includes thorough checks, a complete reconditioning at
state-of-the-art Maruti Suzuki workshops and certification by a Maruti Suzuki
Engineer present at the TrueValue outlets. That's not all, as a mark of a assurance we
give you a warranty up to 1 year and 3 free services. Buy a Maruti Suzuki certified
used car and make a wise investment.
Passenger Cars
Two-Wheelers
Three-Wheelers
Despite a head start since its beginning in the 1940s, the Indian automotive industry
has been moving at a slow pace mainly due to the all-pervasive regulatory atmosphere
prevailing till recently. Moreover, the industry was considered low-priority as cars
were thought of as unaffordable luxury for the masses.
In the post-liberalization period the passenger car sector witnessed a boom, owing to
economic vibrancy, changes in government policies, increase in purchasing power,
improvement in lifestyles, and availability of car finance. The industry was
deregulated in 1993, and many companies, both Indian and foreign (Daewoo, Ford,
General Motors, and DaimlerChrysler), entered the market. However, the smooth
sailing was disrupted in the last quarter of 1996. The automotive industry, which
contributed substantially to the industrial growth in FY1996 failed to maintain the
same momentum between FY1997 and FY1999. The overall slowdown in the
economy and the resultant slowdown in industrial production, political uncertainty
and inadequate infrastructure development were some of the factors responsible for
the slowdown in the automotive industry.
While the passenger car segment, with the launch of many new models, posted
positive growth rates in FY 2000 and FY 2001, the upturn was rather brief. In
FY2002, the automotive sector especially the passenger car segment continued to reel
under the pressure of over-capacity with low demand. FY2003 witnessed a healthy
growth in the passenger car sales with the pick up in the economy. The passenger car
sales in the first half of FY2004 were also buoyant.
However, the contribution of the automobile sector to industrial output, number of
cars per person, automobile sector employment as a percentage of industrial
employment, number of months' income required to purchase a car, and penetration of
cars are quite low. Low demand and lack of vision on the part of the OEMs and
policymakers stunted the Indian automobile industry. However, major car
manufacturers worldwide foresee future demand in India. The regulatory environment
has been liberalized and demand has picked up. Global OEMs who enjoy scale
economics both in terms of manufacturing and research and development have
entered the Indian market, leading to a shift in the business operations of suppliers,
assemblers and marketers.
Market Characteristics
Product Penetration
The penetration of passenger cars in India stood at five per thousand persons as
against 27 for two-wheelers in 2000. Significantly, the Indian figures are lower than
even those for economies like Indonesia (14 and 62). The relatively high penetration
of two-wheelers in India reflects the population's need for mobility and their limited
affordability.
Automotive Penetration (vehicles in use per thousand persons)*
Passenger Cars Two wheelers
USA
478
14
12
Japan
395
115
Germany
508
36
China
Indonesia
14
62
South Korea
167
59
India
27
Market Segmentation
Considering that affordability is the most important demand driver in India, the
domestic car market has been segmented on the basis of vehicle price till SIAM
4
FY2007
CAGR
666248
838845
8%
Domestic Sales
Increased affluence, wider selection and the ready availability of car loans is driving
the Indian car market through the roof. During the last five years (2000-05), the
production of passenger cars in India increased by more than 100 per cent. India
achieved the sales of 1.11 million vehicles last year (2005).
Domestic sales have been growing at a clipping pace:
Passenger car sales rose by 22.84 per cent during April-September 2006, compared
to the corresponding period n 2005.
The cumulative growth of overall sales of passenger vehicles during April-September
of 2006-07 was 20.73 percent.
Utility Vehicle (UVs) sales grew at 12.85 per cent during the same period.
Overall, the commercial vehicles segment grew at 36.96 per cent. Growth of Medium
and Heavy Commercial Vehicles was 39.92 per cent. Light Commercial Vehicles also
performed well with a growth of 32.86 percent.
Exports
India is fast emerging as a manufacturing base for car exports. According to the
Society of Indian Automobile Manufacturers (SIAM), a total of 89,338 vehicles were
exported in September 2006, a 58.07 per cent jump as compared to the same month
last year. While passenger vehicle exports grew at 13.15 per cent, two-wheelers and
commercial vehicle exports grew at 27.80 per cent.
Eicher Motors
Bajaj Auto
Hero Motors
Hindustan Motors
Telco
TVS Motors
DC Designs
manufacturing companies setting up their units in different parts of the country, the
production of the cars will increase at a very fast rate. The car statistics indicate that
India will soon become one of the top 10 car manufacturing countries , leaving behind
the U.K. Car statistics also show that by the end of the fiscal year 2006-2007, the car
production capacity in India will exceed the mark of 2 million. Thus, the production
of cars will increase by 70% from the present capacity of 1.2 million.
The domestic sales of passenger cars have increased significantly over the years. A
graphical representation of the domestic sale of cars will give you an insight about the
present market situation prevailing in the country:
emerged as one of the major bases for manufacturing small passenger cars. At present
the Indian automotive industry boasts of being the 3 rd largest manufacturer of small
cars. According to the car statistics almost 70 % of the cars sold in this country come
under the segment of small cars. A number of car manufacturers like: Maruti Udyog,
Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc offer
various new model of cars now and then. It is expected that the various automobile
manufacturers will be investing about $ 5 billion in India, between 2005-2010.
As per the car statistics, export of passenger cars from India has also grown
considerably over the last decade. A graphical representation of car export trend will
help you to make an in-depth analysis of the present status of the Indian automotive
industry: With new strategies being implemented and more investments being made in
Indian automotive industry the production as well as the domestic sale and exports
will increase substantially.
India definitely is shining; with a GDP that is sparkling at over 8 per annum the
country certainly is on the right course. The automobile exports are at an all time high
as was indicated by Society of Indian automobile Manufacturers in a report released
in 2006. According to the report, the passenger car segment saw a rise of 9% in
January 2006.
Analysis of Indian Exports:
Strengths
Global hub policy for small car like Hyundai, Suzuki, etc.
Weakness
Infrastructure bottlenecks.
Opportunities
Huge export markets such as Europe, America, Africa, and others for Indian
cars.
Threats
Export Imperatives:
Internal Factors:
External Factors:
Rs1 mn).
The models in the car market can be fitted to different segment as given below:Category
Models
Swift,
Wagen-R
Premier
The demand for passenger cars can be segmented on the basis of the user segment as
those bought by taxi operators, government/non government institutions individual
buyers etc. A major portion of the demand in India accrues mainly from personal
vehicle owners.
Government policy: the license-raj of the Indian government toll 1991 acted as
a significant barrier for any new entrants in the passenger car industry.
Moreover, the governments perception of the car being a luxury rather than
a modern necessity resulted in this sector being labeled as low priority.
However, the liberalization of the Indian economy has removed this
hindrance.
huge capital Costs: Huge capital Cost act as significant entry barrier and only
established companies with deep pockets possess the resources to enter the
automobile industry. Significant costs are involved in the development of a
10
new car as can be seen by Telcos Indica car which has incurred an
expenditure of Rs.17 bn.
Absolute cost Advantages: Marutis presence in the car industry since 1984
gives it considerable cost advantage over the new entrants. Not only are its
plants highly depreciated and its cars highly indigenized as compared to its
competitors, it has a wide distribution and service network which will require
mammoth resource to replicate.
Absolute Cost Advantage: Marutis presence in the car industry since 1984 gives it
considerable cost advantage over the new entrants. Not only are its plants highly
depreciated and its cars highly indigenized as compared to its competitors, it has a
wide distribution and service network which will require mammoth resource to
replicate.
Although liberalization of the Indian economy has reduced the impact of government
policy as an entry barrier, the car industry still enjoy high entry barriers due to huge
capital costs involved in setting up efficient plants and numerous cost advantages
enjoyed by Maruti. The recent pull-out of Peugeot is an example that even a global
automobile company could find it extremely difficult to operate in India if it faces
labor trouble and Rivalry between Established competitors.
Diversity of competitors: 1984 and 1993 have been land mark years for the
Indian car industry. The entry of Maruti in 1984 changed the complexion of
the industry as for the first time Indian had opportunity a buy a car which was
comparable to the Japanese automobile. 1993 was a historic year as the
industry was deregulated an India become the latest battlefield for global auto
11
majors. The last few years have seen the industry integrate with global
automobile industry and evolve into being extremely competitive. For the first
time, Marutis position as the leader of the car industry will be severally
challenged especially if three new cars (Tata Indica, Daewoo, DArt, and
Hyundai Santro) in the economy segment can deliver the promised
performance.
Product differentiation: One of the key trends observed in the car industry
during the last decade is that the products of different companies have become
increasingly similar especially in the economy and mid-size segment. There is
a perceptible shift towards car being treated as a commodity rather than as a
consumer good. In the premium car segment in India, differentiation between
different models is declining as companies strive to increase volumes by
cutting prices. Even Opel Astra has decided to introduced a new model
without any frills to reduced its prices by Rs.10 million.
The competition between firms in the car industry is expected the intensify
considerable as never companies will start reducing Marutis dominance of the
market the expected significant over-capacity in the industry, increasing
working capital needs, and high exit barriers coupled with low differentiation
between models especially in the economy segment will put downward
pressure on price and profitability of companies.
Buyers price Sensitive: Car buyers in India are extremely price-sensitive especially in
the economy segment. Although it is too early to judge the three new small cars and
Maruti response to it, we can expect the price competition to intensify since buyers
would e more willing to switch while intense competition among the companies
would require them to generate volumes.
Relative bargaining power : Gone are the days when the India car buyer had to buy
12
one of the 30,000 Ambassadors or Fiate, which were produced. The penetration of
satellite television has globalized the Indian customer. Car companies have seen
forced to revamp their dealer network. From a small shed for a dealership, the shift is
towards huge dealership who not only offer complete range of services for the car but
also make sure that the customer has a replacement vehicle so that they may not
become immobile.
Availability of Easy financing: the entry of numerous car companies has brought
along with it a massive increase in the availability of cheap finance for the Indian
consumer. This hassled to fierce competition among the car companies and has even
led to free gifts being doled out to buyers to lure them to purchase a particular car.
Bargaining Power of Suppliers
Diminishing Supplier Power : one of the key trends observed in the global auto
industry is the significant increase in outsourcing of car parts. In India, the
development of the auto ancillary industry has also brought in this phenomenon.
However, the large number of competitors for supplying each part implies that in the
coming years, supplier power will diminish to a large extent except for suppliers who
have almost monopolistic power like Mico-Bosch. Also, there is a increasing shift
towards reduction in vendor base for a company which means that the chosen
suppliers also have to make substantial financial investments to enhance the quality of
their products.
Supplier power in the automobile industry will diminish greatly in the coming years
due to the large number of competing supplier, threat of cheaper and better-quality
imports, and an increasing trend towards reduction of a car companys vendor base.
spot gaps in the market and cater to particular niche markets like sports utility
vehicles and minivans. The diminishing power of the supplier industry will help the
industry in improving the quality of car components and getting longer payment
periods. The key to success in the Indian car market will be offering good quality cars
that offer value for money, run innovative marketing campaigns to attract potential
buyers, and offer excellent after sales service. Companies, which have a range of
vehicles in all the segments of the market like Maruti, will be at a significant
advantage due to their ability to cross-subsidize model
13
Manufacturing process
The body panel and engine constitute a major portion of the total cost of car
manufacture. A typical cost structure for car is as given below.
Parts/assembly
% of total cost
Glass
Brakes/wheels/tyres
Interiors
Transmission system
Ignition/exhaust
system
Steering/suspension
Comfort fittings
11
Engine
16
Body
18
Others
13
14
INFORMATION
Automobiles Industry
The automobiles sector is compartmentalized in four different sectors which are as follows:
15
Except for the two-wheelers, all other segments in the industry have been weakening. There is
a negative impact on the automakers and dealers who offered high discounts in order to push
sales. To match the decline in demand, automakers have resorted to production cuts and layoffs, due to which capacity utilization for most automakers remains at a dismal level.
Despite the comprehensive market being under extreme burden, the luxury car market has
observed a robust double-digit hike during the year 2013-2014, as a result of rewarding new
launches at compelling lower price points. Further, with the measured increases in the price of
diesel, the overall market continues to shift towards petrol-fuelled cars. This has lead to the
growth in sales of the 'Mini' segment of the PV market by of 5.5%
Factors determining the growth of the industry
Fuel economy and demand for greater fuel efficiency is a major factor that affects
consumer purchase decision that will bring leading companies across two-wheeler and
four-wheeler segment to focus on delivering performance-oriented products.
billion which is basically accounting for more than 10% of the GDP. This would also provide
further employment to over 25 million people by 2016 making the automobile the sunrise
sector of the economy.
According to the Confederation of Indian Industry, the automobile sector currently employs
over 80 lac people. An extension in production in the automobile industry is forecasted, it is
likely to rise to Rs. 600000 crore by 2016.
Future Trends in the Automobile Industry
As the auto-shows began in January 2014, the industry promised a blend of technology and
automotives. With the recession trend breaking its leashes form the past two years, 2014 is
expected to get back on track with the sales of automobiles in the country.
High Performance Hybrid cars are likely to gain greater popularity among consumers.
17
The Indian automobile industry has a prominent future in India. Apart from meeting the
advancing domestic demands, it is penetrating the international market too. Favoured with
various benefits such as globally competitive auto-ancillary industry; production of steel at
lowest cost; inexpensive and high skill manpower; entrenched testing and R & D centres etc.,
the industry provide immense investment and employment opportunities.
4. Company Information
MARUTI UDYOG LIMITED
Maruti Udyog Ltd is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue
earned. 18.28% of the company is owned by the government, and 54.2% by Suzuki of
Japan. The Indian government held an Initial Public Offering of 25% of the company
in June of 2003.The company annually exports more than 30,000 cars and has an
extremely large domestic market in India selling over five hundred thousand cars
annually. Maruti 800, till 2004, was the India's largest selling compact car ever since
it was launched in 1983. More than a million units of this car have been sold
worldwide so far. Currently, Maruti Alto tops the sales charts.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti"
is commonly used to refer to this compact car model. Till recently the term "Maruti",
in popular Indian culture, was associated to the Maruti 800 model.
The largest selling car from Maruti's stable, Maruti 800
In the order they were launched:
Maruti 800: Launched 1983. Largest selling car in India, till 2004.
Maruti Finance- To promote its bottom line growth, Maruti launched Maruti
Finance in January 2002. Prior to the start of this service Maruti had started
two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group
and GE Countrywide respectively to assist its client in securing loan. Maruti
tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,
Standard Chartered Bank, and Sundaram to start this venture including its
strategic parnters in car finance. Again the company entered into a strategic
partnership with SBI in March 2003. Since March 2003, Maruti has sold over
12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently
available in 166 cities across India.
N2N Fleet Management- N2N is the short form of End to End Fleet
Management and provides lease and fleet management solution to corporates.
Its impressive list of clients who have signed up of this service include Gas
19
Technology
Fuel Efficiency
Choice of colour
Shape May- 1993, Zen the world car unvieled at a world premier.
November- 1994, Esteem the first luxury car on Indian roads launched
December- 1999, Baleno, the top end of the luxury car launched.
Sales, particularly in the small car segment, will drive passenger car sales in
the near in term. However, within the next two years , capacity is expected to
be twice the total demand for cars.
What will also drive car sales is the wide availability of finance schemes by a
variety of banks and FIs.
Sales in the used car market is also expected to do well as more an dmore
older models get replaced by newer ones at a faster pace. The coming in of
Euro 3 and 4 norms will also increase scrappage rates.
In view of expected surplus in the domestic market, India will emerge as one
of the leading car sourcing point in the Indian subcontinent.
India has added advantage of an extensively segmented market and a welldeveloped dealer network.
5. METHODOLOGY
Literature Review
Many developing countries regard the automobile industry as an economically
strategic sector in the light of its contribution to national production, employment and
technology, reinforced through the magnitude of upstream and downstream activities
(Fujita,2001). This is due to the fact that an automobile is made up of over 5000 parts
and components and thus the industry can create significant linkages and clustering as
many of these parts and components are manufactured by suppliers in other industries,
such as plastic, steel, electronic, rubber textile glass and metal(Tham 2003). Both
agree that the above factors as well as the large amounts of investment and large-scale
production typically required of capital-intensive industry, largely explain
governments extensive intervention in the sector prevalent in may countries
Background of the Study
The process of providing loans to the exporters requires official formalities to be
completed as the risk always lies with the bank. Primary study of this project is
about how the bank manages to balance the risk and the customer satisfaction as it
deals with foreign currency by providing loans in dollars..
Problem Statement and Importance of the Study
Maruti has come out with a concept of creating a new market for Pre Owned
(second hand) cars which it calls True Value.
23
Hypothesis:
Null Hypothesis: Preference for buying Pre Owned Car is more then New Car
Alternate Hypothesis: Preference for buying Pre Owned Car is not more then New Car
24
6. RESEARCH METHODOLOGY
Research Design
Research is one of the most important part of any study and pertains to the
collection of information and knowledge. Marketing research is defined as the
systematic design, collection, analysis and reporting of data and findings relevant to
a specific marketing situation facing the company. My project research is
Exploratory research this is concerned with discovering the general nature of the
problem and the variable that relate to it. Exploratory research is characterized by
high degree of feasibility and it tends to rely on secondary data.During this study,
exploratory research is carried to identify the variable like, customer satisfaction
level, basis of purchase decisions, important of brand name, customer opinion
regarding various preferred feature, the innovative advertising strategies used by the
companies, which decides the strength of the company to be in the customers mind
and also to grab the major portion in the market.
After discovering the general nature and the variable relating to it, with the help of
exploratory research, a descriptive research will carried out during the study for the
purpose of accurate description of variables.
Descriptive research carried out with the help of primary data collected from the
customer through questionnaires.
Source of Data
Primary Data:
Systematic collection of information directly from respondents. This data is collected
for the descriptive research. The survey data collected during the study includes the
data collected through questionnaire and face-to-face interview with customer to
know about the consumer behavior.
Secondary Data:
The first step in data collection approach is to look for secondary data. Usually it is
the data developed for some purpose other than for helping to solve the problem at
hand. Secondary data are collected through various magazines, internal experts,
website, directories, external experts and miscellaneous report.
25
Population
For the purpose of this project self-administered questionnaire to potential customers and for
standard commercial business enterprises located in Mumbai city.
Sampling Method
Convenient Sampling
For our survey we have utilized convenient sampling because we could not have
access to all the users. We, therefore, got our survey filled from All the people using
A2 segment cars and the people who can afford an A3 segment cars and standard
commercial enterprises located in Mumbai.
Sampling Frame
List of standard commercial enterprises located In Mumbai, List of A2 segment car
user and list of people who can afford A3 segment cars.
Sampling unit:
Standard Hotels, Business enterprises and households
Sample Size:
100
Sampling Method
Samples are selected on Non probability convenient sampling method.
26
Valid
Engineer
Doctor
Lecturar
Business
Advocate
Banker
Total
Frequency
11
8
19
24
17
21
100
Percent
11.0
8.0
19.0
24.0
17.0
21.0
100.0
Valid Percent
11.0
8.0
19.0
24.0
17.0
21.0
100.0
Cumulative
Percent
11.0
19.0
38.0
62.0
79.0
100.0
Profession of Respondent
30
20
Frequency
10
0
Engineer
Doctor
Lecturar
Business
Advocate
Banker
Profession of Respondent
Findings:
11 % of Respondents are Engineers
8 % of Respondents are Doctors
19 % of Respondents are Lecturars
24 % of Respondents are Businessman
17 % of Respondents are Advacates
21 % of Respondents are Bankers
Interpretation
Among different demographic classification in the research profession of the
respondents is the prime factor and her professional like business, advocates, bankers,
engineers, lectures are focused customers.
27
Q 2. Age of Respondent
Age of Respondent
Valid
25-35
35-45
45-55
>55
Total
Frequency
36
37
23
4
100
Percent
36.0
37.0
23.0
4.0
100.0
Valid Percent
36.0
37.0
23.0
4.0
100.0
Cumulative
Percent
36.0
73.0
96.0
100.0
Age of Respondent
40
30
Frequency
20
10
0
25-35
35-45
45-55
>55
Age of Respondent
Findings:
36 % of Respondents are of age 25-35
37 % of Respondents are of age 35-45
23 % of Respondents are of age 45-55
4 % of Respondents are of age greater than 55
Interpretation
The other demographic classification is the age of the respondents, as India is having
very significant portion of young population so there are more than 73% of the people
are in age group 25 to 45 willing to have cars.
28
Q 3. Gender of Respondent
Gender of Respondent
Valid
Male
Female
Total
Frequency
88
12
100
Percent
88.0
12.0
100.0
Valid Percent
88.0
12.0
100.0
Cumulative
Percent
88.0
100.0
Gender of Respondent
100
80
60
Frequency
40
20
0
Male
Female
Gender of Respondent
Findings:
88 % of Respondents are male
12 % of Respondents are male
Interpretation:
The gender is the prime important factor and the male is dominating the auto sector
and remote sector is growing
29
Valid
Rs 50,000-Rs 1,00,000
Rs 1,00,000-Rs 1,50,000
Rs 1,50,000-Rs,2,00,000
> 2,00,0000
Total
Frequency
19
42
36
3
100
Percent
19.0
42.0
36.0
3.0
100.0
Valid Percent
19.0
42.0
36.0
3.0
100.0
Cumulative
Percent
19.0
61.0
97.0
100.0
Income of Respondent
50
40
30
Frequency
20
10
0
Rs 50,000-Rs 1,00,00
Rs 1,50,000-Rs,2,00,
Rs 1,00,000-Rs 1,50,
> 2,00,0000
Income of Respondent
Findings:
19 % of Respondents are under income Rs.50,000-Rs.1,00,000
42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000
36 % of Respondents are under income Rs.1,50,000-Rs.2,00,000
3 % of Respondents are under income greater than >2,00,000
Interpretation
as I have already told that companies are focusing on the middle class segment of the
Indian market in the income group or 1 lack to 2 lack which accounts to 78 %
approximately
30
Q 5. Marital Status
Marital Status
Valid
Married
Unmarried
Total
Frequency
81
19
100
Percent
81.0
19.0
100.0
Valid Percent
81.0
19.0
100.0
Cumulative
Percent
81.0
100.0
Marital Status
100
80
60
Frequency
40
20
0
Married
Unmarried
Marital Status
Findings:
81 % of Respondents are Married
19 % of Respondents are Unmarried
Interpretation
Among the married and unmarried customers the car owner and the prospective car
customer are the married one the safety provided to the self and the family is prime
importance in buying car and they account to 80%
31
Q 6. Number of Children
Number oif Children
Valid
One
Two
More than 2
No
Total
Frequency
31
38
12
19
100
Percent
31.0
38.0
12.0
19.0
100.0
Valid Percent
31.0
38.0
12.0
19.0
100.0
Cumulative
Percent
31.0
69.0
81.0
100.0
30
Frequency
20
10
0
One
Two
More than 2
No
Findings:
31 % of Respondents have one child
38 % of Respondents have two children
12 % of Respondents have more than two children
19 % of Respondents have no children
Interpretation
as above explained the safety of he family is one of the prime important the children
of the family and there safety is demanding the parents to own a car
32
Valid
Yes
No
Total
Frequency
32
68
100
Percent
32.0
68.0
100.0
Valid Percent
32.0
68.0
100.0
Frequency
30
20
10
0
Yes
No
Findings:
32 % of Respondents have their own car
68 % of Respondents dont have their own car
33
Cumulative
Percent
32.0
100.0
Q.8
Is
it
New
car
or
Second
Hand
Ca
Valid
New Car
Pre-Owned car
No Car
Total
Frequency
17
15
68
100
Percent
17.0
15.0
68.0
100.0
Valid Percent
17.0
15.0
68.0
100.0
Cumulative
Percent
17.0
32.0
100.0
17.0
17.0
16.5
16.0
Frequency
15.5
15.0
15.0
14.5
New Car
Pre-Owned car
Findings:
54 % of Respondents have new car
46 % of Respondents have Pre owned cars
Interpretation
As for the auto industry standards the sales of new and pre owned cars is 1:1 as per
the research it is showing the same where how car seekers, and pre owned car seekers
are equal.
Valid
Missing
Total
Certified Dealer
UnCertified Dealer
Total
System
Frequency
5
10
15
85
100
Percent
5.0
10.0
15.0
85.0
100.0
Valid Percent
33.3
66.7
100.0
10
Frequency
0
Certified Dealer
UnCertified Dealer
Findings:
33 % of Respondents have purchased cars from certified dealers
67 % of Respondents have purchased cars from uncertified dealers
35
Cumulative
Percent
33.3
100.0
Valid
Missing
Total
Advertisements
Friends/Neighbours
Other Dealers
Total
System
Frequency
8
5
2
15
85
100
Percent
8.0
5.0
2.0
15.0
85.0
100.0
Valid Percent
53.3
33.3
13.3
100.0
Cumulative
Percent
53.3
86.7
100.0
Frequency
0
Advertisements
Friends/Neighbours
Other Dealers
Findings:
54 % of Respondents came to know about uncertified dealers through Advertisements
33 % of Respondents came to know about uncertified dealers through Friends &
Neighbours
13 % of Respondents came to know about uncertified dealers through other dealers
Interpretation
Advertisement and word of mouth are playing very important role in him educating
the customers about dealers which account to around 87 % approximately.
36
Valid
Missing
Total
New car
Pre owned car
Dont Want Cars
Total
System
Frequency
21
43
4
68
32
100
Percent
21.0
43.0
4.0
68.0
32.0
100.0
Valid Percent
30.9
63.2
5.9
100.0
Cumulative
Percent
30.9
94.1
100.0
40
30
Frequency
20
10
0
New car
Findings:
31 % of Respondents wants to buy new car
63 % of Respondents wants to buy pre owned car
6 % of Respondents dont wants to buy car
Interpretation
Among the prospective car customers majority of him customers are willing to buy
the pre owned cars.
37
Valid
Missing
Total
Certified Dealer
Uncertified Dealer
Total
System
Frequency
16
27
43
57
100
Percent
16.0
27.0
43.0
57.0
100.0
Valid Percent
37.2
62.8
100.0
Cumulative
Percent
37.2
100.0
20
Frequency
10
0
Certified Dealer
Uncertified Dealer
Findings:
37 % of Respondents wants to buy pre-owned car from certified dealers
63 % of Respondents wants to buy pre-owned car from uncertified dealers
Interpretation
As budget is the prime concern for the customers who want buy the pre owned cars
and there certified dealer are bit expressive for the customers of this segment. So
majority of them go to Uncertified customers
38
Valid
Missing
Total
Budget
Milage
Age
Personal or
Company owned
Total
System
Frequency
29
23
3
Percent
29.0
23.0
3.0
Valid Percent
50.0
39.7
5.2
Cumulative
Percent
50.0
89.7
94.8
3.0
5.2
100.0
58
42
100
58.0
42.0
100.0
100.0
30
Frequency
20
10
0
Budget
Milage
Age
Personal or Company
Findings:
50 % of Respondents considers budget while buying pre-owned car
40 % of Respondents considers milage while buying pre-owned car
5 % of Respondents considers age while buying pre-owned car
5 % of Respondents considers personal/company owned while buying pre-owned car
Interpretation
As the Indian customers are more concerned about the economy of the car the budget
and mileage are gain important.
39
Frequency
20
10
0
Yes
No
Findings:
40 % of Respondents heard about Maruti True Value
60 % of Respondents didnt heard about Maruti True Value
40
Valid
Missing
Total
Advertisements
Friends/Neighbours
Other Dealers
Total
System
Frequency
19
11
10
40
60
100
Percent
19.0
11.0
10.0
40.0
60.0
100.0
Valid Percent
47.5
27.5
25.0
100.0
Cumulative
Percent
47.5
75.0
100.0
Frequency
10
0
Advertisements
Friends/Neighbours
Other Dealers
Findings:
47 % of Respondents heard about Maruti True Value from advertisements
26 % of Respondents heard about Maruti True Value from friends/neighbours
27 % of Respondents heard about Maruti True Value from other dealers
Interpretation
Advertising through different channel of media are to be focused as majority of the
respondents dont know about the Maruti true value.
41
Valid
Missing
Total
Yes
No'
Total
System
Frequency
26
27
53
47
100
Percent
26.0
27.0
53.0
47.0
100.0
Valid Percent
49.1
50.9
100.0
Cumulative
Percent
49.1
100.0
Would you prefer to buy from "Maruti True Value" if it is provided 3 fre
30
20
Frequency
10
0
Yes
No'
Would you prefer to buy from "Maruti True Value" if it is provided 3 fre
Findings:
49 % of Respondents will refer to buy from "Maruti True Value" if it is provided 3
free services and 1 year gurantee
51 % of Respondents will not prefer to buy from "Maruti True Value" if it is provided
3 free services and 1 year gurantee
42
For Students(Professional)
Q 1) Are you Localite or non localite
Are you Localite or non localite
Valid
Localite
Non-Localite
Total
Frequency
14
11
25
Percent
56.0
44.0
100.0
Valid Percent
56.0
44.0
100.0
40
30
Percent
20
10
0
Localite
Non-Localite
Findings:
56% of Respondents said they are localites
44% of Respondents said they are non- localites
43
Cumulative
Percent
56.0
100.0
Valid
2 Yrs
2 yrs and above
Total
Frequency
8
17
25
Percent
32.0
68.0
100.0
Valid Percent
32.0
68.0
100.0
Cumulative
Percent
32.0
100.0
32
Percent
20
10
0
2 Yrs
Findings:
32% of Respondents are under 0-2 year courses
68% of Respondents are under 2 year and above courses
44
Valid
>10000
<10000
Total
Frequency
11
14
25
Percent
44.0
56.0
100.0
Valid Percent
44.0
56.0
100.0
40
30
Percent
20
10
0
>10000
<10000
Findings:
56% of Respondents are having pocket money >10000
44% of Respondents are having pocket money <10000
45
Cumulative
Percent
44.0
100.0
Valid
Hostel
Rented house
Total
Frequency
7
18
25
Percent
28.0
72.0
100.0
60
40
Percent
20
0
Hostel
Rented house
Findings:
28% of Respondents stay in hostel.
72% of Respondents are stay in rented house.
46
Valid Percent
28.0
72.0
100.0
Cumulative
Percent
28.0
100.0
Valid
Far
not very far
close by.
Total
Frequency
9
9
7
25
Percent
36.0
36.0
28.0
100.0
Valid Percent
36.0
36.0
28.0
100.0
36
30
28
20
Percent
10
0
Far
close by.
Findings:
36% of Respondents stay far by college.
36% of Respondents stay which is not very far by college.
28% of Respondents stay near by college.
47
Cumulative
Percent
36.0
72.0
100.0
Valid
Yes
No
Total
Frequency
15
10
25
Percent
60.0
40.0
100.0
Valid Percent
60.0
40.0
100.0
Yes
60.0%
Findings:
60% of Respondents own a vehical
40% of Respondents do not own a vehical.
48
Cumulative
Percent
60.0
100.0
Q.7) If Yes, is it a
if Yes, is it a
Valid
Missing
Total
Frequency
9
6
15
10
25
2 wheeler
4 wheeler
Total
System
Percent
36.0
24.0
60.0
40.0
100.0
Valid Percent
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
if Yes, is it a
70
60
60
50
40
40
30
Percent
20
10
0
2 wheeler
4 wheeler
if Yes, is it a
Valid
Missing
Total
new car
pre-owned car
Total
System
Frequency
1
4
5
20
25
Percent
4.0
16.0
20.0
80.0
100.0
49
Valid Percent
20.0
80.0
100.0
Cumulative
Percent
20.0
100.0
80
80
60
40
Percent
20
20
0
new car
pre-owned car
Valid
Missing
Total
Yes
No
Total
System
Frequency
3
1
4
21
25
Percent
12.0
4.0
16.0
84.0
100.0
Valid Percent
75.0
25.0
100.0
60
40
25
Percent
20
0
Yes
No
50
Cumulative
Percent
75.0
100.0
Valid
Missing
Total
Yes
No
Total
System
Frequency
12
11
23
2
25
Percent
48.0
44.0
92.0
8.0
100.0
Valid Percent
52.2
47.8
100.0
Cumulative
Percent
52.2
100.0
50
52
48
40
30
Percent
20
10
0
Yes
No
51
Valid
Missing
Total
certified dealer
An uncertified dealer
Total
System
Frequency
4
8
12
13
25
Percent
16.0
32.0
48.0
52.0
100.0
certified dealer
33.3%
An uncertified deale
66.7%
52
Valid Percent
33.3
66.7
100.0
Cumulative
Percent
33.3
100.0
Valid
Missing
Total
50,000- 75,000
75,000- 1,50,000
Total
System
Frequency
8
4
12
13
25
Percent
32.0
16.0
48.0
52.0
100.0
30
Percent
20
10
0
50,000- 75,000
75,000- 1,50,000
53
Valid Percent
66.7
33.3
100.0
Cumulative
Percent
66.7
100.0
Valid
Missing
Total
2-3 years
4-5 years
5-10 years
Total
System
Frequency
7
3
2
12
13
25
Percent
28.0
12.0
8.0
48.0
52.0
100.0
Valid Percent
58.3
25.0
16.7
100.0
20
Percent
17
10
0
2-3 years
4-5 years
5-10 years
54
Cumulative
Percent
58.3
83.3
100.0
Valid
Yes
No
Total
Frequency
16
9
25
Percent
64.0
36.0
100.0
Valid Percent
64.0
36.0
100.0
Percent
20
10
0
Yes
No
55
Cumulative
Percent
64.0
100.0
Percent
20
10
0
Yes
No
80
60
40
Percent
20
0
Yes
No
100
80
60
Percent
40
20
0
No
56
Would you buy a car from 'True Value' if it gave 3 free service
backup, and 1 yr guarantee?
Would you buy a car from 'True Value' if it gave 3 free service backup,
and 1 yr guarantee?
Valid
Yes
No
Total
Frequency
10
15
25
Percent
40.0
60.0
100.0
Valid Percent
40.0
60.0
100.0
Cumulative
Percent
40.0
100.0
60
50
40
40
30
Percent
20
10
0
Yes
No
Would you buy a car from 'True Value' if it gave 3 free service backup,
57
For Dealers
Since when is your organization established?
Since when is your organization established?
Valid
0-5
5-10
10-15
Total
Frequency
3
2
5
10
Percent
30.0
20.0
50.0
100.0
Valid Percent
30.0
20.0
50.0
100.0
50
40
30
Percent
20
10
0
0-5
5-10
10-15
58
Cumulative
Percent
30.0
50.0
100.0
Valid
Yes
No
Total
Frequency
5
5
10
Percent
50.0
50.0
100.0
Valid Percent
50.0
50.0
100.0
50
40
30
Percent
20
10
0
Yes
No
59
Cumulative
Percent
50.0
100.0
What
kind
of
promotional
activities
Percent
20
10
0
Yes
No
80
60
40
Percent
20
0
Yes
No
50
40
30
Percent
20
10
0
Yes
No
60
do
you
use?
60
40
Percent
20
0
Yes
No
Percent
20
10
0
Yes
No
80
60
40
Percent
20
0
Yes
No
61
Valid
25- 125
125- 225
225- 325
Total
Frequency
6
3
1
10
Percent
60.0
30.0
10.0
100.0
Valid Percent
60.0
30.0
10.0
100.0
Percent
20
10
0
25- 125
125- 225
225- 325
62
Cumulative
Percent
60.0
90.0
100.0
Profession of
Respondent
Engineer
Doctor
Lecturar
Business
Advocate
Banker
Total
Total
12
10
New car
Count
2
Pre owned car
0
Lecturar
Doctor
Advocate
Business
Banker
Profession of Respondent
Interpretation
Out of 3 engineers 2 says new car, and 1 say pre owned car.
Out of 4 doctors 2 says new car, and 1 say pre owned car.
Out of 17 lecturers 6 say new car and 10 say pre owned car.
Out of 15 Business men 4 says new car, and 10 say pre owned car.
Out of 13 advocates 3 say new car, and 10 say pre owned car.
Out of 16 bank employees, 5 say new car, and 4 say pre owned car.
63
3
4
17
15
13
16
68
Income of Respondent * Would you buy a new car or pre-owned car Crosstabulation
Count
Income of
Respondent
Rs 50,000-Rs 1,00,000
Rs 1,00,000-Rs 1,50,000
Rs 1,50,000-Rs,2,00,000
Total
30
20
10
Count
New car
Pre owned car
0
Rs 50,000-Rs 1,00,00
Rs 1,50,000-Rs,2,00,
Rs 1,00,000-Rs 1,50,
Income of Respondent
InterpretationOut 19 respondents falling in the income category of Rs 50, 000- 1, 00, 000,
13 prefer pre- owned car.
Out 37 respondents falling in the income category of Rs 1, 00 000- 1, 50, 00
27 prefer pre- owned car.
Out 12 respondents falling in the income category of Rs 1, 50, 000- 2, 00, 000
3 prefer pre- owned car.
64
Total
19
37
12
68
Age
25-35
35-45
45-60
Total
Total
43
39
18
100
Interpretationout 43 respondents falling in the age category of 25- 35, 10 have heard of Maruti
True Value.
Out 39 respondents falling in the age category of 35- 45, 9 have heard of Maruti
True Value.
Out 18 respondents falling in the age category of 45- 60, 2 have heard of Maruti
True Value.
PROFESSION
Total
lecturer
banker
advocate
business
engineer
housewife
Total
36
13
23
15
4
9
100
65
Sample of Students
60% own a vehicle, out of which 60% own a 2 wheeler, and 40% a 4 wheeler.
55% of the sample is interested in buying a car (pre- owned) for time being.
71% say they would not buy from Maruti True Value.
Sample of Dealers 20 % are established in the market since 5-10 years and 50 % are since from
10-15 years
50% use middlemen for sales.
Promotion activities
40% - pamphlets
25%- Melas
67
68
Target Segment- the target customers whom I suggest Bellad Motors should
concentrate is the advocates, lecturers and petty business men, because they
are the respondents who are keen in buying pre owned cars.
The target can also be segmented age wise, 25-45 are the most interested
segment in buying a pre owned car.
Bellad Motors as a dealer is very well known and well established in the twin
city
market, but the concept of True Value is not known to MOST of the
Mostly the age group of 25-35 is aware of the Marutis True Value
concept.
Family size influences in buying a car is proved through the Chi Square
Test,
Out of respondents who own pre owned cars, 98% bought it from a UnCertified
make an effort to change this mind set of the people in Dharwad city.
When respondents were asked what have they heard of Maruti True Value,
the responses were mostly negative. Price was the major issue they have
with True Value. They say that it charges much a higher price than the
other dealers; therefore I suggest that either Maruti should try to reduce
the price of the vehicles or Bellad Motors should try to change the
perception of the people by highlighting the plus points like 1 yr warranty
and 3 free services.
Pre-Owned is more of a sophisticated word for the localities; the other petty
an upper hand on this front, as they use a much
69
dealers have
easily seen
from the highway; only a keen observer can notice it, a bigger
board or a hoarding
highway.
Most of the students want to buy a pre owned car from an un certified
dealer, because of the price factor, therefore when targeting the students
category lowering the price should be considered. I suggest that the price
can be lowered by not including the free service and warranty on the car,
as the students do not mind it.
The expected price of the pre owned cars is from Rs 50,000- 75,000.
The expected age of the car is mostly 3-5 yrs, which the company can
consider these aspects when targeting the students.
More than 50% of the students are not aware of the True Value concept,
which again calls for advertisements from Bellad Motors.
61% of the students get more than Rs 10,000 as their pocket money, this
signifies that it can be assumed the students are from well to do families
and Bellad Motors can use this as a advantage and try perusing them.
From the personal interaction with the students, the insights gained were,
that the students go to these second hand car melas, and 0% 0f them have
known or heard of True Value conducting melas, therefore I suggest that it
be advertised properly.
The students look for sponsors, True Value can use this as one of their
tools in spreading the awareness, by displaying one of the pre owned cars,
70
71
09.Conclusion
The study helped me gain valuable insights in Opportunity Analysis and
Consumer Behavior, towards buying a pre owned car. This project titled , has
been a knowledge gaining experience for me. By interacting with the respondents
and making visits to the Uncertified Dealers. I have understood that
understanding customers is an art and it takes a very strong brand image for a
company to retain & grow its market share. The results of the survey proved to be
both encouraging and partly discouraging too. The respondents were not very
positive about Marutis True Value, which was quite discouraging and a
negative sign for the company. The segment for which Bellad Motors should
cater to is a price sensitive segment, so as the organization should focus on
highlighting the additional perquisites that they would provide with the car, it is
going to bond well with the targeted market and even grow their market to all the
geographical areas. Though there are many competitors in the market for this
segment, the company has an added advantage, but still it cannot rule out the local
dealers. But I believe that Bellad Motors Maruti True Value has what it takes to
become a name to reckon with in the market and I offer my best wishes for the
same and hope that my work will be of some use for the company.
The majority of the indian population is of the middle class segment which demand for the
low cost and low maintaince cars this very reason has given birth to the pre-owned car
segment which is growing at the accelerating growth rate.
72
10. Bibliography
http://articles.economictimes.indiatimes.com/2014-0905/news/53601725_1_maruti-suzuki-rc-bhargava-suzuki-motor-corp
http://www.maruticarsindia.in/2013/11/maruti-suzukis-new-mpv-project-rx-tocompete-with-toyota-innova.html
http://www.rncos.com/Market-Analysis-Reports/Used-Car-Market-in-IndiaIM360.htm
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77
78
79
80
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