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20Mysore.
INTRODUCTION
This project is an attempt to give a comparison between Maruti Suzuki Swift and Hyundai i20. It
aims to know the marketing strategies, performance analysis and consumer perception regarding
these cars along with factors which influence their choice.
As the number of middle and upper middle class families increasing in India, is on the rise
with demand for hatchback or luxury small cars is in India. Maruti Suzuki offers its
customers economical & budget cars for its customers & Hyundai offers relatively high
luxury in its vehicles and a highly efficient service network to back up its sales team.
This comparative study covers Marutis & Hyundais history that dates back over many years.
It also focuses on Marutis & Hyundais presence in India and its impact in India as compared
to that of other similar segments. A questionnaire has been devised to find out what makes
respondents to buy either of the two cars and inferences have been derived from the data
collected. Finally based on the above findings and report suggestions conclusions have been
drawn what parameters makes people to buy out of the two cars.
INDUSTRY PROFILE
AUTOMOTIVE INDUSTRY IN INDIA
One of the major changes in the industry has been the opening up and growth of several
emerging markets. India is one of the most important emerging car economies in the world
today. The Indian automobile industry comprises of the commercial vehicles, multi-utility
vehicles, passenger cars, two wheelers, three wheelers, tractors and auto components.
The government of Indias new automobile policies like reduction of excise duty to 40% and
import duties to 50% attracted a large number of automobile companies to India which
includes General motors, Ford, Toyota, BMW, Chrysler, Honda, Hyundai, Fiat, Hindustan
motors, Skoda Auto, Telco and one indo-Japanese venture, Maruti already in the passenger
car market with 70% of the market share which makes it the numerous Uno player in
automobile market.
In the initial years after the independence Indian automobile industry was plagued by
unfavorable government policies. All it had to offer in the passenger car segment was a 1940s
mirrors 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 year 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. Automotive
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 the last few years and offers differentiated
products for different segment 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 year
Indian automobile sector has witnessed a slew of investments. India is on every major global
automobile players radar. Indian automobile industry is also fast becoming an outsourcing
Forth largest passenger vehicle in Asia and 11th largest in the world.
Expected to become the worlds third largest automobile market by 2030. Behind
In 1771 he again designed another steam-driven engine that ran so fast that it rammed into a
wall, recording the worlds first accident.
CURRENT STATISTICS
Mainly Automobile Industry includes:
Passenger Vehicles
Commercial Vehicles
Three Wheelers
Two Wheelers
As per latest data of SIAM the automobile industries market is divided as:
Passenger Vehicles
Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share
while the Challenger Hyundai is far behind it.
STRENGTHS
1. Low labor cost advantage
2. Government subsidies for manufacturing plants
3. Strong designing skills etc.
WEAKNESS
1.
2.
3.
4.
5.
OPPORTUNITIES
1.
2.
3.
4.
5.
THREATS
1. A continuous increase in input costs
2. Increasing interest rates
3. High competition
The Indian automobile industrys growth is driven by various factors which include:
Large local
demand
10
Economic
Growth
Infrastructure
Development
Rural Economy
Disposable
Income
Rising fuel
prices
Inflationary trends
Current problems of
Automobile Industry
11
Swelling interest
rates
Lower growth
rate
COMPANY PROFILE
Maruti Suzuki
13
In early 1980s Indian Govt decided to produce a small car, which would be within buying
reach of Indian middle class. The obvious place to shop for technology was Japan, which had
developed world class capabilities in small cars by that time. It was not Toyota, or Nissan, or
Honda ,three largest player in Japan, but Suzuki, a much smaller company with strong
capabilities in making small cars. Suzuki grabbed the opportunity with both hands and
formed a joint venture with govt. called Maruti Udyog.
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the
leader of the Indian car market for about two decades. Its manufacturing plant, located some
25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum,
with a capability to produce about half a million vehicles.
Maruti rolled out its 1st car, Maruti 800 with 800cc engine in December 1983. This model
targeted at masses and was launched as Peoples car. In early 2003, Maruti Udyog, a joint
venture between Suzuki and Indian Govt. dominated Indias automobile market with 54%
market share and with annual production capacity of 5lac cars. The company dominated
Indian Small car market with a share of 100% in A seg, 36% in B seg and 86% overall.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car
Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car
Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.
In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor
Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen and
Esteem, completely designed and styled in-house. Maruti's contribution as the engine of
growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire
generation of Indian middle class, is widely acknowledged. Its emotional connect with the
customer continues
Maruti tops customer satisfaction again for 8th year in a row according to the J.D. Power Asia
Pacific. India Customer Satisfaction Index Study. The company has also ranked highest in
India Sales Satisfaction Study.
14
15
16
Hyundai Motors
17
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest car manufacturer and the largest passenger
car exporter from India. HMIL presently markets 54 variants of passenger cars across
segments. The Santro in the B segment, the Eon, i10 and the Premium hatchback i20 in the
B+ segment, the Accent and the Verna in the C segment, the Sonata and elentra in the E
segment and the santafe in the SUV segment.
Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2012,
an increase of 49.6 percent over CY 2011. In the domestic market it clocked a growth of 22.4
percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports
accounting for 243,931 units in 2012.
HMILs manufacturing plant is located near Chennai which has advanced production quality
and testing capabilities in the country. Inorder to provide the Indian customer with global
technology, HMIL started its second plant in February 2008 which produces an additional
300,000 units per annum, raising HMIL's total production capacity to 600,000 units per
annum. Apart from expansion of production capacity, HMIL currently has 260 strong dealer
network across India.
The production management processes at Hyundai Motor India are overlaid with an
organization-wide implementation of manufacturing best practices like Just-in-time inventory
management, Kaizen, TPM and TQM, that help us in making the world's best cars, right here
in India.
Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown into the
Hyundai-Kia Automotive Group which was ranked as the worlds fifth-largest automaker in
2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over
18
19
Hyundai Sonata
Hyundai Eon
Hyundai i10
20
Hyundai Santa Fe
Hyundai Xcent
PRODUCT PROFILE
21
In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as
Maruti Swift. In the Indian auto market Swift is available with seven variants four with petrol
and three with diesel engine option. The petrol version of Maruti Swift is powered by 1.2L Kseries engine. The 1.2L, K-series petrol engine present in Maruti Swift is highly fuel efficient
with the availability of 16 Valve light weight DOHC engine that reduces friction and
improves durability and fuel economy to the best in town. Maruti Swift is endowed with 5
Speed Manual Transmission Gearbox. This gearbox is cable type gearshift which is of great
help at the time of shifting of gear. Maruti Swifts powerful engine with the emission of BS
IV and is very fuel efficient and a very good performer that offers an impressive mileage of
14.4 kmpl in the city roads and 18.1 kmpl on the highways.
However, the diesel version of Maruti Swift is packed with 1.3L, DDiS engine with a
displacement of 1248cc. The 1.3L diesel engine is packed with turbocharger and intercooler
combination that offers efficient combustion and clear emissions. The diesel engine is
endowed with 5 step multi injection common rail system that offers better fuel combustion
and hereby gives good performance and makes the car economical to run. This compact
diesel engine is incredibly fuel efficient and offers a mileage of 16.9 kmpl in the city roads
and 19.6 kmpl on the highways.
22
Statistics
BODY TYPE
Body Type
Hatchback
Number of Doors
ENGINE
Capacity
1197cc
Number of Cylinders
Number of Valves
16
Bore x Stroke
73.0mm x 71.5mm
Compression Ratio
10.1:1
Maximum Power
85ps @ 6,000rpm
Maximum Torque
113Nm @ 4,500rpm
Fuel Distribution
Multipoint injection
Emissions
BS IV
TRANSMISSION
Type
Gear Ratios
3.54
5
4th
0.91
4
2n
d
1.90
4
5th
0.75
7
3rd
1.28
0
Revers
e
3.27
2
DIMENSIONS
Overall Length
3,760mm
23
Overall Width
1,690mm
Overall Height
1,530mm
Wheelbase
2,390mm
Track
1,470mm
1,480mm
Front
Rear
Ground Clearance
170mm
4.7 metres
Luggage Capacity
CHASSIS
Steering
Brakes
Front
Rear
Ventilated discs
Drums
Suspension
Front
Rear
TYRES
WEIGHTS
Kerb Weight
1,415 kgs
43 litres
The Generation V Swift debuted at the Paris Auto Salon in September 2004. This generation
of the Swift marked a significant departure with the previous Cultus-based models, with
Suzuki re-designing the vehicle as less of a "low price alternative" subcompact and more of a
"sporty" subcompact. The Swift's design and driving characteristics focused on the European
market with its chassis refined through a road-testing program across Europe.
Indian Engineers were called to Japan to help Suzuki design this generation of Swift.
Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol
engines, the new Swift is Suzuki's new "global car", produced in Hungary, India, Japan,
Pakistan
and
by
Chang'an
in
China.
In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or
1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive
version. The design of the new Swift was previewed on the Concept S and Concept S2
concept
cars
at
auto
shows,
in
the
years
leading
up
to
its
launch.
In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol
engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with an
automated
manual
gearbox
or
with
four-wheel
drive.
The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it
a "thoroughly impressive all-rounder". The Generation IV Swift has received a four stars out
of five rating in the EuroNCAP crash tests.
The Suzuki Swift gets a mid-life refresh, the hatchback was launched in 2011. The Swift has
been a popular hatchback ever since the first generation of the car was launched in India in
2004, it changed the segment forever. The design inside-out, interior quality, ride and
handling and peppy-and-efficient engines have made the Swift a favourite. The refreshed
Swift gets minor styling changes outside, new paint options, minute design changes inside,
added equipment and a new variant. The biggest change though is the fact that both the petrol
and diesel engines powering the Swift are now more economical than before, by around 10
per cent. The engines have also been re-tuned for better drivability.
The Swift face-lift gets minor styling changes on the outside. The car retains the peeled-back
headlamps, heavily raked front windscreen, floating roof, short rear and the sculpted body. At
the front changes include a new honeycomb grille along with a new bumper with a larger airdam. Also added are silver L-shaped insert beside the front fog lamps which give the illusion
that the car has LED daytime running lamps. The front door handles on the top-end variants
get request sensors for the key-less entry system, the ORVMs covers are integrated with side
indicators. The top-end variants get new alloy-wheels while the full-wheel covers for the
other variants have been redesigned too. Apart from that the design remains the same as that
25
MARKETING STRATEGIES
Objectives
The main objective of Maruti Suzuki Swift is to conquer the market of hatchback car
segments. Launched in 2005, Maruti Suzuki aimed to make Swift the leader of top quality
hatchback cars, and since then no car of its competitors has been able to tackle Swifts sales.
The MS Swifts share is more than 15% in the market, and is currently the best selling Car of
its segment in India.
26
Target Markets
Swift targets the domestic market first and it will not face any capacity constraint here. A
sizeable number of cars have been manufactured at Maruti plant in Gurgaon and deliveries
will commenced by the first week of June 2005," Arvind Saxena, chief general manager,
sales, MSL said. "Over 85 per cent of the car has been indigenized. Swift is based on the
latest European design and styling, built with Japanese quality and precision, utilizing Indian
engineering capability. The car has an universal appeal," he added. At present, MSL has an
installed capacity of 3,50,000 units per annum and the company manufacturers around
6,00,000 vehicles per annum on a two-shift basis. However, the company officials did not
divulge the exact number of Swift cars to be manufactured in India. According to industry
estimates, around 50,000 Swifts are expected to be sold in India in the first year. Currently,
being launched across the globe, Swift has received rave reviews internationally for its path
breaking looks and styling and superior safety features. It has become one of the top 20 bestselling models in Japan since its launch there in November 2004.
Positioning
Using product differentiation, Maruti Suzuki Swift will be placed as the most comfortable,
convenient, value added hatchback model for above target market used. The marketing
strategy will be focused on promoting the car as the best hatchback car model for the next
generation.
Strategies Product
The Maruti Suzuki Swift is fully loaded and comes with a warranty of up to 3 years; it can
also be extended up to 5 years maximum. Also a higher model, Maruti Swift DZire has been
introduced in 2010, as a replacement for Maruti Esteem, which has completed its run.
Price:
Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki
Swift car. After launching cars for the masses since so many years, Indias largest automobile
manufacturer is now targeting the premium segment with their latest model from the Suzukis
stable. The analysts predict the pricing of this premium hatchback to start from Rs. 4 lakh.
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Distribution
The Stockiest will represent 4 to 5 districts in a State.
The Dealer will represent a district or main City.
The Sub-Dealer shall represent a particular area or taluka.
The booking agents will be individuals working on freelance basis.
Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agency will also coordinate public relation efforts to build Maruti Suzuki brand & support the differentiation
message. To attract market attention & encourage purchasing, we will offer a limited time,
registration & insurance. To attract, retain & motivate channel partners for a push strategy, we
will use trade sales promotions and personal selling to channel partner.
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Advertisements
Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts to the
people about its products by marketing through advertisement in television, radio, newspaper,
etc.
Through radios they try to promote their product by organizing quiz contests and the person
who wins are offered special discounts, gift vouchers, coupons, etc.
Through television they promote their vehicle by showing the utility value, its comfort level.
Display
If you visit any of the Maruti Dealers showroom what you will notice is one thing very
similar, that is the display. They display only 2-3 cars in the showroom. Well this is the
strategy to make people concentrate on only few choices otherwise they might get distract
and get confused. Here Maruti wins one customer.
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Exchange offers
Maruti has also placed its step and progress by marketing through exchange offers. In this it
makes possible to leave and get it replaced for a new one with barely some amount. This is
one of the greatest ways to attract more and more customers and also makes possible to
increase sales.
The unbeatable advantages of SBI Maruti car loans:-Two market leaders in their respective industries with trusted brand names.
-Low interest rates
-No processing fees or hidden costs to ensure transparency.
-Car loans available for diverse categories of customers including govt. employees and
agriculturist.
TIMELINE OF GENERATIONS
30
A shorter three-door version, with redesigned bumpers, was introduced in 2003, named Swift
Sport in Japan and Ignis Sport in Europe. The Ignis Sport used the same 1.5 L as the regular
Ignis, but with power increased. The Swift/Ignis Sport went out of production in 2005.
In 2001, General Motors introduced the Chevrolet Cruzea crossover SUV based on the
Swift, retaining the original car's basic dimensions and power plants. The Cruze was restyled,
adopting a crossover look between a tall hatchback and a sport utility vehicle, and the threedoor body was dropped. The "Chevrolet Cruze" commercial designation was used in most of
south Asia, while in Australia the car was sold by as the Holden Cruze from 2002 to 2006.
Suzuki in Europe introduced the Cruze as an update of the Ignis in 2003, although extended
by roughly 150 millimetres (5.9 in) in length, to improve interior room and luggage space.
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the
new
Swift
is
Suzuki's
new
"global
car",
produced
footballer Cristiano
many
the
European
Swift
has
markets the model has been a runaway success. In Denmark, the Gen IV Swift has been
consistently in Top 3 for more than 2 years and was the car with the highest sales figures in
2006. In India, rapid sales of the new Swift model contributed to the 64% rise in Q1 profits
for Maruti Suzuki. The Swift will be reintroduced to the U.S. market in 2010 to replace
the Suzuki Reno
33
SWOT ANALYSIS
Strengths
Brand Image.
Reliable and cheap.
Established brand in Indian market.
Great service and nationwide penetration.
Experience in Indian market.
Very old player in Indian market.
Established distribution & after sales networks.
Weaknesses
Diseconomies to scale
No online presence
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Opportunities
Acquisitions
Innovation
Online Product and services expansion
Takeovers
Targeting Higher Middle Class requirements
Threats
Competition
Cheaper technology
External changes (government, politics, taxes, etc)
Lower cost competitors or imports
Price wars
Product substitution.
Hyundai i-20
35
The Hyundai i20 was designed in a Hyundai Designing Centre in Germany by a BMW
designer: Thomas Buerkle. The Hyundai i20 is a supermini/subcompact car, made its debut
at the Paris Motor Show in October 2008 and went on sale in December 2008 in India to fit
between the i10 and i30. It is a Front wheel drive car. The car is mostly European because of
its design and designer. Three and five door versions are available (Both have different sleek
window shapes). The i20 replaces the Getz in most markets but in the UK and India, the Getz
will still be available for the time being. The i20 is assembled in Turkey for the European
market[1] and in India for sale in Asia and Oceania. The i20 has recently replaced the Getz in
Australia.
The i20 is not sold in Korea, as the similar, Korea-built (Which is also known as the Hyundai
Getz in the UK) sold there.
In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine
developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 Nm (84 lbft) of peak torque
at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of power at 5500
rpm and 139 Nm (103 lbft) at 4200 rpm i20 CRDi the diesel i20 comes with a powerful oil burner
generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 Nm (165 lbft) of peak
torque between 17502750 rpm.
Statistics
Overview
Model
i20
Body Type
Hatchback
Number Of Doors
5
36
Seating Capacity
Fuel Capacity
45
Dimensions:
Length
3940 mm
Width
1710 mm
Height
1505 mm
Wheelbase
2525 mm
Ground Clearance
N/A
Minimum
Radius
N/A
Turning
Weight:
Kerb Weight
1066 kg
Engine:
Type
Number Of Cylinders
Displacement
N/A
Transmission
5 Speed, Manual
Max. Power
Max. Torque
N/A
Suspension:
Front Suspension
Rear Suspension
Brake:
Front
Disc
Rear
Drum
Steering Type
Tyre Size
175/70 R14
37
MARKETING STRATEGIES
Advertisements
Hyundai had used Bollywood star Sharukh Khan as Brand Ambassador for promoting their
car. Through this they tried to attract the customers.
To promote their product they organized quiz contests on radio and the person who wins was
offered special discounts, gift vouchers, coupons, etc.
They also advertise in Newspapers. In this companies advertise about the car in various
newspapers and they give detail explanation about the feature of the cars, keeping customers
requirement. They also provide various dealers addresses and contact numbers for reference.
Free checkups
38
Hyundai arranges free checkups from time to time in which they check for any problem and
advice to visit the nearest service center for servicing. This helps in maintaining good
relationship with customers and tries to keep good image in market.
Exchange offers
As Hyundai deals in pre-owned cars also. They offer exchange offers to customers. And by
paying adjusted amount customer can get brand new car in exchange of old once. Exchange
offer makes customer happy as they dont have to pay full amount also, they get new car also
and their old car gets replaced also with new one.
39
Cold callings
In this type of strategies old customers are given a relationship call just to know some other
references. This gives a boost to sales and customers also feel a sense of involvement.
Hyundai gets maximum sale through such type of cold callings only.
Hyundai tries to attract customers by conducting camps, events at corporate offices and bank
as most of the customers are of middle-age group and corporate offices are good source for
company to attract such customers.
Display
Hyundai keeps attractive display so that maximum number of people gets noticed. And they
even keep their own accessories related to cars at special accessories counter. For attractive
display they decorate their showroom as well as all the cars which are displayed.
Objectives
First year Objectives: We are aiming for 5% market share of the Indian market through unit
sale volume of 100000.Second year Objectives: We are aiming for 10% market share of the
Indian market. An important objective will be to establish a well-regarded brand name linked
to a meaningful positioning. We will have to invest heavily in marketing to create a
memorable and distinctive brand image projecting innovation, quality and value. We also
must measure awareness and response so we can adjust our marketing efforts if necessary.
Target Markets
40
Positioning
Using product differentiation we are positioning the Hyundai i20 as the most versatile,
convenient, value added car model for above target market used. The marketing strategy will
be focused on promoting the car as economic car for the next generation.
Strategies Product
Hyundai i20 is fully loaded and will be sold with 3 year warranty. We will also introduce a
CNG/LPG version of Hyundai i20 in the near future. Also the high end model has an option
of GPS system.
Price
Hyundai i20's base model is at ex-showroom price of 4.5 lakhs. This price reflects a strategy
of
1) Attracting desirable channel partners
2) Taking market share from Maruti.
Distribution
The Stockiest will represent 3 to 4 districts in a State.
41
Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agencies will also
co-ordinate public relation efforts to build Hyundai brand & support the differentiation
message. To attract market attention & encourage purchasing, we will offer a limited time,
registration & insurance. To attract, retain & motivate channel partners for a push strategy, we
will use trade sales promotions and personal selling to channel partner.
Various Marketing Strategies enables a firm to expand business activities for market
reputation, to satisfy human wants , to lead to specialization and efficient performance of
production function climaxing in economic stability.
After liberalization automobile Industry is growing at very high rate and many new
companies have also entered into market. With offering variety of cars in all segments for
everyone. So it is important to know which company is providing us good quality cars at fair
prices and providing better after sales services. And how they are trying to reach customers.
The most obvious objective marketers have for promotional activities is to convince
customers to make a decision that benefits the marketer (of course the marketer believes the
decision will also benefit the customer). For most for-profit marketers this means getting
customers to buy an organizations product and, in most cases, to remain a loyal long-term
customer.
TIMELINE OF
GENERATIONS
Hyundai i20 in
production
42
43
RESEARCH DESIGN
Statement of the problem
Consumer choice process is a complex phenomenon. Making a decision to buy a product or
services involves many processes. The literature on consume behavior studies reveals that for
the selection of durable products, especially passenger cars, the customer has to spend much
time to evaluate and choose the desired one based on their need and economic condition. The
marketing strategies followed by the manufacturer and marketer as well as pre-conceived
idea of the buyer also play a vital role in selection of a particular brand and to get more
satisfied. Only a limited number of attempts have been made to study the impact of brand
preference factors on customer behavior. Based on these basic questions, the researcher has
developed an interest to do a comparative analysis between the two mid-size segment cars in
India viz.., Maruti Swift & Hyundai i-20
45
Sample Size
The size of the sample for study was 100 respondents from Mysore city of Karnataka. They were
selected using convenient sampling technique. As this is a comparative study between the two cars
100 respondents were equally divided for the two cars so as to increase the accuracy.
Tools of Analysis
The statistical tool used for the purpose of the analysis of this study is simple percentage
technique and ranking techniques. After the collection of data through the questionnaire,
46
Sampling Technique
Convenience Sampling Technique is used where it is both descriptive and Exploratory in
nature
47
REVIEW OF LITERATURE
Satya Sundaram (2008), analyzed how the competition makes the automobile manufacturer
to launch at least one new model or a variant of the model every year. This survey also
pointed out that diesel cars are becoming popular in India and the announcement of
reductions in excise duties by the government has helped to some extent to boost the demand.
Clement Sudhakar and Venkatapathy (2009), studied the influence of peer group in the
purchase of car with reference to Coimbatore District. It was also found that the influence of
friends is higher for the purchase of small sized and midsized cars.
Brown et al (2010), analyzed the consumers attitude towards European, Japanese and the
US cars. The countryoforigin plays a significant role in the consumers behavior. The
brand name, lower price and distributors reputation completely have a significant impact on
the sale of passengers car.
Manish Kumar Srivastava, A.K. Tiwari [2011], studies the consumer behavior for A3
segment vehicles such as Honda City and SX4 in a particular region Jaipur. Data collected
48
49
THEORATICAL BACKGROUND
The term customer refers to a person who buys goods or service for his personal or household
use and not for resale. Attitude is defined as a mental, emotional or rational predisposition
with regard to a fact, state, person or an object.
50
In today's world, business competition is tougher than ever. If you can't provide goods or
services when somebody wants or needs them, there are often four or five other companies
immediately ready to fill this void. You only get one chance to make a good first impression.
If the company's leaders do not accept this fact, or are not willing to provide the necessary
resources to meet their customer's needs, they will soon find themselves scrambling for
business.
Proper training is one way to develop a company culture that embraces excellent customer
service. Employees must understand implicitly what is expected of them when interacting
with customers. Is there an established, uniform way to answer the phone? Are there is a set
of procedures in place for instances when a customer has a question or problem? Is there an
established chain of command to make sure that issues are handled in a timely fashion?
And most importantly is everyone trained to carry out these company procedures? How you
handle the problem is far more important than the problem itself. A customer must always be
made to feel as though their best interests are being given serious consideration, even when
51
The company that fails to acknowledge this strong feeling could head for a lot of trouble.
Consequently some companies channel all customer complaints to the chairman, who deals
with them personally.
53
54
Listen to complaints
Listen patiently with an open mind until the customer has finished his criticisms.
When the anger has passed encourage him express his views as to what has gone wrong.
Avoid arguments with the customer
When a dissatisfied customer is telling about the grievances, under no
circumstances should attempt to argue or dispute the matter even if the customer is
wrong by argument the business lose customer.
When a customer has taken the trouble to complain investigate the matter quickly and
efficiently and report back to the customer with a proposal to rectify the complaint.
Make the customer aware how important business is for customer.
CUSTOMER SATISFACTION
Customer satisfaction is what makes a consumer repeat the purchase of certain products and
service. It is based on the ability of the selling organization in meeting the customer needs
precisely. The absence of complaints is not a sufficient indicator that this is being achieved. The
time and effort involves in complaining is a deterrent to making these view known.
55
56
A customer satisfaction survey demonstrates the value you place on your customers
experience with your company. Although many businesses are quick to placate customers
who voice complaints, a business that pre-emptively strives to satisfy the customer makes an
even better impression. This consideration of the customers opinions can foster loyalty in the
long run and translate to repeat sales.
Customer satisfaction surveys can be an excellent opportunity to form a clear concept of your
demographic. You can find out your average customers age, gender, occupation and other
statistics that will help you tailor your products and services as well as your marketing and
communications material.
Questions related specifically to the quality of service your customers received from sales
clerks or other representatives of the company can help you evaluate employee
performance. A customer that wouldnt normally complain about poor customer service
or praise good customer service on their own accord might make an exception when
presented with a survey that elicits their opinions.
Lead to change
After customer surveys have been completed and trends have been analyzed, the
company should act on what the results have revealed. If your survey data indicates that
your website is difficult to navigate, take action toward getting the website layout
57
Desired Improvements
If feedback is critical or negative on any aspect, quick measures can be taken to bring about
the desired improvements or address grievances and placate relevant customers.
Better Innovation
Analysis of customer feedback surveys and the information collected becomes the basis for
customer intelligence. Used strategically, such intelligence can be used to drive innovation
efforts and initiatives at the company.
Greater Customization
A customer satisfaction survey also shows critical insights about different customer segments
and products so that services and marketing approaches can be tailored accordingly.
58
60
technology
to
organize,
automate,
and
synchronize
business
processes
principally sales activities, but also those for Marketing, Customer service, and Technical
support.
The overall goals are to find, attract, and win new clients, nurture and retain those the
company already has, entice former clients back into the fold, and reduce the costs of
marketing and client service.
61
Decision support
Enterprise ability
Customer Attentions
Increase profitability.
TYPES OF CUSTOMERS
The Marketing Manager should have the knowledge of various types of customers their
attitudes and behavior and ability to recognize and handle them. A sales man must be aware
of all customers with different mindsets. Each customer has his own personality and his
psychological make-up.
There is no ready-made formula to describe the type of customers. However the following
are the important types of customers.
Impulsive Customers
Silent Customers
Talkative Customers
Argumentative Customers
62
63
AGE GROUP
Age
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
20-25
10
10
26-31
22
44
15
30
32-37
15
30
11
22
37 & Above
16
19
38
Total
50
100
50
100
25
20
15
Maruti Suzuki SWIFT
Hyundai I-20
10
0
20-25
26-31
32-37
37 & Above
INTERPRETATION: From the above table it is clear 44% of the respondents of Maruti
Swift users fall under 26-31 age group & 38% of the respondents of Hyundai i-20 users fall
under the age group of 37 & above.
GENDER OF RESPONDENTS
Gender
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Male
46
92
41
82
Female
04
08
09
18
Total
50
100
50
100
64
50
45
40
35
30
Male
Female
25
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
OCCUPATION
Occupation
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Businessman
06
12
11
22
Employee
31
62
30
60
Student
06
12
05
10
Other
07
14
04
08
Total
50
100
50
100
65
INTREPRETATIONS: In this survey, it is clear that Employees are the majority users
for both the cars. 62% of the respondents use Maruti Swift who is an employee & 60% in
Hyundai i-20. Employees or officials prefer these 2 cars highly because of the product image
& both the cars fall under premiere hatchback car segment.
MONTHLY INCOME
Maruti Suzuki
Average Income
SWIFT
Percentage
Hyundai i-20
Percentage
Below 10,000
02
04
00
00
10,000-20,000
08
16
05
10
21,000-40,000
12
24
09
18
28
56
36
72
Total
50
100
50
100
40
35
30
25
20
15
10
5
Ab
ov
e
&
40
,0
00
21
,0
00
-4
0,
00
0
20
,0
00
10
,0
00
-
Be
low
10
,0
00
66
PART B
CAR YOU OWN
Car
Number
Maruti Suzuki
50
SWIFT
Hyundai i-20
50
Total
100
Number
60
50
40
Number
30
20
10
0
Maruti Suzuki SWIFT
Hyundai i-20
67
INTREPRETATIONS: From the above table it is clear there are equal numbers of
Maruti Swift & Hyundai i-20 users.
RECOMMENDATION
Recommendation
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
26
52
23
46
Personal interest
10
20
13
26
Colleague
12
24
05
10
Sales Representative
02
04
10
20
Total
50
100
50
100
30
25
20
15
Maruti Suzuki SWIFT
Hyundai i-20
10
5
lle
ag
ue
Co
Fr
ien
ds
&
Fa
mi
ly
INTERPRETATIONS: From the above table it is clear that 52% of the Maruti Swift
respondents were influenced by friends & family & 46% for Hyundai i-20, whereas the least
68
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Style
07
14
12
24
Mileage
09
18
05
10
Resale Value
13
26
06
12
Power
12
24
10
20
Brand Image
02
04
15
30
Maintenance
07
14
02
04
Total
50
100
50
100
16
14
12
10
8
Maruti Suzuki SWIFT
Hyundai i-20
6
4
2
Im
ag
e
Br
an
d
Va
lue
Re
sa
le
St
yle
INTERPRETATIONS: From the above table it is clear that there is a slight edge
between the resale value & brand image for choosing the Maruti Swift (26% & 24%
respectively) & 2% for brand image shows Marutis brand image compared to Hyundai that
of 30% & also the highest reason the respondents have marked for choosing i-20 as their car.
69
DURATION OF USAGE
Duration
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
15
30
05
10
1-2 years
18
36
16
32
2-3 years
17
34
08
16
Above 3 years
10
20
21
42
Total
50
100
50
100
25
20
15
10
ye
ar
s
Ab
ov
e
ye
ar
s
23
ye
ar
s
12
Le
ss
th
an
ye
ar
INTERPRETATIONS: From the above table it is clear 36% of the Maruti Swift users
are using from past 1-2 years which in a way conveys that because of the high resale value
respondents have opted Swift car, whereas 42% of the Hyundai i-20 respondents are using
their car for more than 3 years.
DISTANCE TRAVELLED
70
DISTANCE
SWIFT
Percentage
Hyundai i-20
Percentage
500-5000 kms
02
03
06
5000-20000 kms
08
16
05
10
20000-40000 kms
19
38
20
20
22
44
22
44
Total
50
100
50
100
25
20
15
10
km
s
km
s
Ab
ov
e4
00
00
20
00
0-
40
00
0
km
s
00
00
50
00
-2
50
0-
50
00
km
s
INTREPRETATIONS: From the above table it is clear that 44% of the Maruti SWIFT
respondents have clocked more than 40,0000 kms & Hyundai i-20 users have also clocked
more than 40,000 kms by 44% of the respondents.
71
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
YES
44
88
41
82
NO
06
12
09
18
Total
50
100
50
100
50
45
40
35
30
YES
NO
25
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
INTERPRETATION: From the above table it is clear that 88% of the SWIFT
respondents are highly satisfied with the overall performance of the car & with the slight
edge 82% of the Hyundai i-20 respondents are highly satisfied with the car.
EXPERIENCE OF
MAJOR
Maruti Suzuki
PROBLEMS
SWIFT
Percentage
Hyundai i-20
Percentage
YES
02
04
01
02
NO
48
96
49
98
Total
50
100
50
100
60
50
40
YES
NO
30
20
10
0
Maruti Suzuki SWIFT
Hyundai i-20
BREAKDOWN
73
BREAKDOWN
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Very often
00
00
00
00
Often
02
04
01
02
Rarely
05
10
06
12
Not at all
43
86
42
84
Total
50
100
50
100
50
45
40
35
30
Maruti Suzuki SWIFT
Hyundai i-20
25
20
15
10
5
0
Very often
Often
Rarely
Not at all
INTERPRETATIONS: From the above table it is very clear that both Maruti SWIFT &
Hyundai i-20 users havent faced very often or often breakdown, this tells about the overall
quality of both cars. But at the slight edge 86% of the Maruti Swift respondents & 84% of the
Hyundai i-20 respondents have not faced any breakdown at all.
74
SATISFACTION
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Yes
45
90
47
94
No
05
10
03
06
Total
05
100
50
100
50
45
40
35
30
Yes
No
25
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
INTREPRETATION: From the above table it is very clear that 90% of the Maruti
SWIFT respondents are highly satisfied with the service provided the authorized service
centre & almost 94% of the Hyundai i-20 respondents are satisfied with the same. This
indicates that Hyundai is successful in providing a very good service.
Maruti Suzuki
INFORMATIVE
SWIFT
Yes
Percentage
Hyundai i-20
Percentage
39
78
44
88
No
11
22
06
12
Total
50
100
50
100
75
50
45
40
35
30
Yes
No
25
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
INTREPRETATION: From the above table it is clear that 78% of the Maruti SWIFTs
respondents queries have been answered promptly & clearly by the Sales Service Team
while purchasing the car whereas 88% are of the Hyundai i-20 users are happy with the
queries being answered promptly at the time of purchase. It indicates that Hyundais sales
service team is working effective in giving information to its customers.
76
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Expensive
21
42
38
76
Moderate
11
22
02
04
Reasonable
08
16
06
12
Inexpensive
10
20
04
08
Total
50
100
50
100
40
35
30
25
Maruti Suzuki SWIFT
Hyundai i-20
20
15
10
5
0
Expensive
Moderate
Reasonable
Inexpensive
INTERPRETATIONS: From the above table it is clear that 42% of the Maruti SWIFT
respondents feel the pricing policy is expensive & only 8% say it is reasonable. Whereas 76%
of the Hyundai i-20 respondents feel the pricing of the car is expensive & only 12% say it is
reasonable. It indicates that Hyundai i-20 respondents are unhappy with the expensive pricing
of the car compared to that of Maruti SWIFT.
MAINTANENCE COST
77
Maruti Suzuki
COST
SWIFT
Expensive
Percentage
Hyundai i-20
Percentage
12
24
25
50
High
11
20
15
30
Reasonable
20
22
06
12
Low
07
14
04
08
Total
50
100
50
100
30
25
20
Maruti Suzuki SWIFT
Hyundai i-20
15
10
5
0
Expensive
High
Reasonable
Low
INTREPRETATIONS: From the above table it is clear that 40% of the Maruti SWIFT
respondents feel that the maintenance cost is reasonable whereas 50% of the Hyundai i-20
respondents say that maintenance cost is expensive & 30% say its very high. So it concludes
that Maruti SWIFT has a lower maintenance cost compared to that of Hyundai i-20.
BUILD QUALITY
78
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
Excellent
20
40
35
70
Good
22
44
10
20
Average
02
04
03
06
Poor
06
12
02
04
Total
50
100
50
100
40
35
30
25
Maruti Suzuki SWIFT
Hyundai i-20
20
15
10
5
0
Excellent
Good
Average
Poor
INTERPRETATIONS: From the above table it is clear that 44% of the Maruti SWIFT
respondents say the build quality is good & 40% say its excellent, whereas 70% of the
Hyundai i-20 users say that the build quality is Excellent. Hyundai i-20 has a better build
quality than Maruti Swift.
Maruti Suzuki
Percentage
Hyundai i-20
Percentage
79
SWIFT
Superb
35
70
21
42
Extraordinary
09
18
09
18
Not bad
03
06
15
30
Average
02
04
10
Total
50
100
50
100
40
35
30
25
Maruti Suzuki SWIFT
20
Hyundai i-20
15
10
5
0
Superb
Extraordinary
Not bad
Average
INTERPRETATIONS: From the above table it is clear that 70% of the SWIFT
respondents feels the power of their car to be superb & only 2% feel its average, whereas
only 42% of the Hyundai i-20 respondents feel the power to be superb & 30% say its not bad.
Maruti SWIFT is the clear winner here.
80
Maruti Suzuki
CAR
SWIFT
Percentage
Hyundai i-20
Percentage
Brand
09
18
12
24
Mileage
12
24
08
16
Price
07
14
05
10
Features
08
16
13
26
Pickup
10
20
05
10
04
08
07
14
Total
50
100
50
100
14
12
10
8
Maruti Suzuki SWIFT
Hyundai i-20
6
4
2
Pi
ck
up
Pr
ice
Br
an
d
INTERPRETATIONS: From the above table it is clear that maximum of 24% of Maruti
Swift respondents chose the car for the Mileage factor whereas maximum of 26% of the
Hyundai i-20 respondents chose the car for the Feature factor.
SEATING COMFORT
SEATING
Maruti Suzuki
Percentage
Hyundai i-20
Percentage
81
SWIFT
Very Comfortable
15
30
28
56
Comfortable
18
36
10
20
Congested
10
20
07
14
Very Congested
07
14
05
10
Total
50
100
50
100
30
25
20
15
Maruti Suzuki SWIFT
Hyundai i-20
10
5
on
ge
ste
d
Ve
ry
C
ng
es
ted
Co
le
mf
or
tab
Co
Ve
ry
C
om
fo
rta
ble
INTERPRETATIONS: From the above table it is clear that maximum of 36% say the
seating is comfortable & 14% say its very congested, whereas 56% of Hyundai i-20
respondents say the seating is very comfortable & only 20% say its very congested. So
Hyundai i-20 has a better seating comfort.
EXPECTATIONS
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
82
21
42
15
30
18
32
14
28
02
04
04
08
Rear AC Vents
07
14
12
24
Chillier Box
02
04
05
10
Total
50
100
50
100
Adjustable Seat
Height
25
20
15
10
Maruti Suzuki SWIFT
Hyundai i-20
Bo
x
Ch
illi
er
Ve
nts
AC
Re
ar
ea
tH
eig
ht
le
S
Ad
jus
tab
Hi
gh
Bo
ot
S
pa
ce
Le
gRo
om
INTERPRETATIONS: From the above table it is clear that maximum of 42% Maruti
SWIFT respondents expect more of legroom in it & also 18% expect high boot space & also
maximum of 30% Hyundai i-20 respondents expect more of legroom & 38% expect more
boot space.
GROUND CLERANCE
GROUND
Maruti Suzuki
CLERANCE
SWIFT
YES
45
Percentage
Hyundai i-20
Percentage
90
42
84
83
05
10
08
16
Total
50
100
50
100
50
45
40
35
30
YES
NO
25
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
INTREPRETATIONS: From the above table it is clear that maximum of 90% Maruti
SWIFT respondents are happy with the ground clearance of the car whereas 84% are happy
with Hyundai i-20. It is because Indian drives excepts the car to be more versatile on all road
conditions. Maruti SWIFT has a better ground clearance.
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
YES
35
70
41
82
NO
15
30
09
18
Total
50
100
50
100
84
45
40
35
30
25
YES
NO
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
HANDLING
HANDLING
Maruti Suzuki
SWIFT
Percentage
Hyundai i-20
Percentage
YES
26
52
36
72
NO
24
48
14
28
Total
50
100
50
100
85
40
35
30
25
YES
NO
20
15
10
5
0
Maruti Suzuki SWIFT
Hyundai i-20
INTERPRETATIONS: From the above table it is clear that 52% of Maruti Swift
respondents are happy with the handling capabilities & 48% are not, whereas in Hyundai i-20
almost 72% are happy with the handling. So Hyundai i-20 has a better handling capabilities
than Maruti Swift.
SUGGESTIONS
1. Hyundai should focus on improving the fuel efficiency of its i20 model, the quality
and reliability needs to be worked upon too, on which the resale value of car depends.
2. Hyundai needs to tap the lower middle class and so has to cut down the pricing of
Hyundai i-20 so as to compete more with Maruti Swift.
3. Maruti Suzuki should improvise the overall build quality of Maruti Swift.
4. Maruti Suzuki should improve on sales service team promptness/ customer
relationship management
CONCLUSIONS
1. Maruti Suzuki Swift is considered to be most fuel-efficient car on Indian roads,& has
better quality, higher resale as compared to Hyundai i20.
2. Maruti Suzuki Service & Spare parts are available throughout India and in local
markets also, & Swift has comparatively low maintenance cost in contrast to Hyundai
i20.
3. While buying a car, brand image, resale value & brand image plays a vital role
4. Majority of the respondents had bought changed their cars within 5 10 years of
purchase of their older cars.
5. Maruti Suzuki Swift has been rated better than Hyundai i20 by the people in terms of
mileage, price, pick up, maintenance and brand image, while Hyundai i20 has only
been rated better in terms of looks and shape.
87
BIBILIOGRAPHY
Authors:
3.
Websites
http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/WhoWeAre/index.html
88
ANNEXURE
QUESTIONNAIRE
A Comparative Study on Consumer Behavior between Maruti Swift and
Hyundai i 20, Mysore.
Dear Sir/Madam,
I Karthik K J student of 4th semester MBA at Pooja Bhagavat
Memorial Mahajanas PG Centre, as a part of my curriculum have undertaken
the project on Consumer Behavior between Maruti Swift and Hyundai i 20,
Mysore. I would be grateful if you can kindly cooperate with me by spending
your precious time and providing me valuable information needed for the
project .any information received from you will be kept strictly confidential.
PART A
89
d) Above 37
4. Gender: - Male:
5. Occupation: a) Businessman
c) Student
6. Average income: a. Below 10,000
b. Between 10,000-20,000
c. Between 21,000-40,000
d. 40,000 & above
Female:
b) Employee
d) Other
PART B
Please select the car & tick the appropriate options below
1. Which car are you using?
a) Maruti Swift
b) Hyundai i-20
2. Who recommended you to buy the car?
a) Friends & Family
b) Personal interest
c) Colleague
d) Sales Representative
3. Important reason for buying the car?
a) Style
b) Mileage
c) Resale Value
d) Power
e) Brand Image
f) Maintenance cost
4. For how many years are you using the car?
a) Less than 1 year
90
91
15. What factors did you consider while purchasing the car?
a) Brand
b) Mileage
c) Price
d) Features
e) Pickup
f) After Sales Service
16. How do you rate the seating comfort of your car?
a) Very comfortable
b) Comfortable
c) Congested
d) Very congested
17. What factors you expect more about the interiors of the car?
a) Leg-room
b) High boot-space
c) Adjustable seat
d) Noise-free cabin
e) Rear AC vents
f) Chiller box
18. Are you happy with the ground clearance of your car?
a) YES
b) NO
19. Are you happy with the specifications of your car with respect to the pricing?
a) YES
b) NO
20. How do rate the handling of your car?
a) Very Good
b) Good
92
THANK YOU
93