buying behavior of customers maruthi suzuki mba marketing project report

SHANTESHA MOTORS PVT. LTD.

EXECUTIVE SUMMARY

A project report containing marketing research on “The Impact of Brand Preference

among B-Segment cars on Buying behavior of customers at Belgaum city” is partial

fulfillment of requirement of MBA-II semester in Belgaum Institute of Management

Studies, Belgaum.

So the need to know which is the Brand preferred and the Buying behaviour of customer,

I collected the information by a structured questionnaire that included all the

requirements what the SMPL needed and the questionnaire is attached in the appendix.

This study helps the organization in the following ways:

Management will know the most preferred brand among B-segment cars

Management will understand the buying behaviour of customers

To understand customers preference towards dealers.

So these are some fact by conducting this survey.

BABASAB PATIL


INTRODUCTION

It gives me an immense pleasure to present you this entire project. The project emphases

on “THE IMPACT OF BRAND PREFERENCE AMONG B-SEGMENT CARS ON

BUYING BEHAVIOUR OF CUSTOMERS AT BELGAUM CITY ” the study is

undertaken at Shantesha Motors Pvt Ltd. Belgaum.

The project report focuses on the Brand preferred by the customers, their Buying

Behaviour, customers preference towards dealers and what all service the customer

wanted.

LITERATURE REVIEW

Brand preference:

Today, the primary capital of much business is their brands. For decades, the value of the

company was measured in terms of its real estate, then tangible assets, plants and

equipments. However, it has recently been recognized that a company’s real value lies

outside the business itself, in the minds of potential buyers.

For the potential customer, a brand is a landmark. Like money, it facilitates trade.

Faced with a multitude of silent or “hard –to-read” products, whose performance cannot

be assessed at first glance, customer are confused. Brand and prices make products easier

to “read”, removing uncertainty. A product price measures it’s monetary value, it’s brand

identifies the products and reveals the facts of it’s differences functional value ,pleasure

value and symbolic value as a reflection as a buyer’s self image. One word, One Symbol

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Summarizes an idea, a sentence and a long list of attributes ,values and principles infused

into the product or service .A brand encapsulates identity, origin and difference. It

evokes this information concentrate in a word or a sign. This is why brands are vital for

business exchange when faced with, say, hundreds of personal computers, a buyer can

use brands to structure this selection, to segment it, helping him to decide what he wants,

looking towards the products whose brand indicate that they will satisfy his expectations,

needs, or wishes. In markets in which technology and fashion mean that the choice is

constantly evolving, brands provide havens of stability, describing an identity and

promising constant features and direction.

Brands are the real capital of business, yet brand management is still in its infancy. At

present, the tendency is to manage products that happen to have a name. Management is

still living in the age of the products, but brand management involves other, specific

approaches and principles. These are the focus of this presentation.

A brand is not a product: it is the product’s source, its meaning, and its direction, and it

defines its identity in time and space. Businesses are discovering that brand equity must

be managed, nurtured, and controlled. Brand consciousness is raising new questions for

mangers: how many brands be extended? What products and service should it

encompass? Or, on the other hand, what should its limit be, even when a certain turnovers

is expected from it? Going too far can also weaken brand equity.

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How do you manage brands over time and keep them up to date, as technologies,

products and customers are changing? How do you manage while staying the same? How

do provide consistent synergic management of the range of product sold under a single

brand? How do you optimize image in the relationship between products and their brand?

How far can a brand be extended geographically? Does it have the potential to become a

homogeneous geo-brand in all countries? Or is this impossible, or even undesirable?

Many companies have the same name as their brand (e.g., Renault, Nestle, IBM, BASF).

What difference between managing a brand image and managing corporate and

institutional image? Finally, given that brands do have a value, how can this be measured,

so that it can be tracked and controlled? Should it be capitalized on the balance sheet, to

indicate its true economic value to stockholders, investors, and financial partners?

Brands vary in the amount of power and value they have in the market place. At one

extreme are brands that are not know by most buyers. Then there are brands for which

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

degree of brand acceptability. There are brands that enjoy a high degree of brand

preference. Finally there are brands that command a high degree of loyalty.

Tony O’ Reilly, former CEO of H. J. Heinz, proposed this test of brand loyalty: “My acid

test… is whether a house wife, intending to buy Heinz tomato ketchup in a store, finding

it to be out of stock, will walk out of the store to buy it elsewhere. ”

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Aaker distinguished five levels of customer attitude toward his or her brand, from lowest

to highest.

1. Customer will change brands, especially for price reasons. No brand loyalty.

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

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

4. Customer values the brands and sees it as a friend.

5. Customer is devoted to the brand.

Statement of the problem

In Indian car industry, small car segments have played a very crucial and significant role

due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into

Indian markets, the pace of competition has hiked. This has brought into market, number

of Brands and their variants competing to with each other.

All these factors have resulted in flux in the minds of the customers as to which brand to

go for. In other words, Brand-switching is gaining the momentum. So to position the

brand in the minds of the customers the company or dealer should keep the track of this

shift in preferences. Hence the main purpose of this study is to find the “Impact of

Brand preference among B-Segment cars on Buying behaviour of customers at

Belgaum city”.

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Purpose of study

The purpose of the study is to know the Brand preferred by the customers and change in

buying behavior can be estimated by this study. The marketing strategies can be designed

in accordance with this change. It will be helpful for the managers to make decisions.

Hence, this study should be conducted.

Scope of the study

The main purpose of the study is to know the “Impact of Brand preference among B-

segment cars on Buying Behavior of Customers at Belgaum city”. This study will provide

solutions to the management by understanding customers feedback.

Through this study Management will know :

The reason why people opt four-wheeler.

To know the features considered by the customers while purchasing a car.

To know the most preferred brand by the customers.

The scope of the study is restricted up to the Belgaum city.

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Objectives of the study

1. To find the impact of Brand preference among B-segment cars.

2. To understand the Buying behaviour of customers.

3. To know the facilities/services expected by the customers from the dealer.

4. To know the means of finance preferred by the customers.

5. To know the reason why people opt four-wheeler.

6. To know the significant attributes preferred by customers in a car.

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ORGANIZATION PROFILE

MARUTI UDYOG LIMITED

ORGANIZATION OVERVIEW:

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of

Parliament, to meet the growing demand of a personal mode of transport caused by the

lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective partners worldwide.

This was not only due to their undisputed leadership in small cars but also to their

commitment to actively bring to MUL contemporary technology and Japanese

management practices (which had catapulted Japan over USA to the status of the top

auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between Govt. of India and

Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

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The objectives of MUL then were:

1. Modernization of the Indian Automobile Industry.

2. Production of fuel-efficient vehicles to conserve scarce resources.

3. Production of large number of motor vehicles which was necessary for economic

growth.

ORGANIZATION VISION:

"The Leader in The Indian Automobile Industry, creating Customer Delight and

Shareholder's Wealth; A pride of India."

OUR CORE VALUES:

1. Customer Obsession

2. Fast, Flexible and First Mover

3. Innovation and Creativity

4. Networking and Partnership

5. Openness and Learning

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TECHNOLOGICAL ADVANTAGE:

We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti

Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a

fuel efficient 4-valve engine to create optimum engine delivery. This means every Maruti

Suzuki owner gets the ideal combination of power and performance from his car.

Our other innovation has been the introduction of Electronic Power Steering (EPS) in

select models. This results in better and greater maneuverability. In other words, our cars

have become more pleasurable to drive.

PRDUCTION/ R & D:

Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti

Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two

vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to

make a car. More importantly, with an incredible range of 11 models available in 50

variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.

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Production Milestones

1 st vehicle produced, December 1983

1,00,000 vehicles produced by August, 1986

5,00,000 vehicles produced by June, 1990

10,00,000 vehicles produced by March, 1994

15,00,000 vehicles produced by April, 1996

20,00,000 vehicles produced by October, 1997

25,00,000 vehicles produced by March, 1999

30,00,000 vehicles produced by June, 2000

35,00,000 vehicles produced by December 2001



MILESTONES:

2006

The car of the Year Maruti SWIFT.

2005

The fiftieth lakh car rolls out in April, 2005

Growth in overall sales by 15.8%

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2004

New (non AlC) variant of Alto

Alto becomes India's new best selling car

LPG variant of 'Omni Cargo'

Versa 5-seater, a new variant

Baleno LXI, a new variant

Maruti closed the financial year 2003-04 with an annual sale of 472122

units, the highest ever since the company began operations 20 years ago

2003

New Suzuki Grand Vitara XL-7

Redesigned and all-new Zen

New upgraded WagonR

Enters into partnership with State Bank of India

Production of 4 millionth vehicle. Listed on BSE and NSE after a public

issue oversubscribed 10 times

2002

WagonR Pride

Esteem Diesel. All other variants upgraded

Maruti Insurance. Two new subsidiaries started: Maruti Insurance

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SHANTESHA MOTORS PVT. LTD. Distributor Services and Maruti Insurance Brokers Limited

Alto Spin LXi, with electronic power steering

Special edition of Maruti 800, India's first colour-coordinated car

Maruti True value in Mumbai

Maruti Finance in Mumbai with 10 finance companies

Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2

Percent

2001

Zen Lxi

Maruti True Value launched in Bangalore and Delhi

Maruti Versa, India's first luxury MPV

Alto Spin LXi, with electronic power steering

Alto Vxi

Customer information centers launched in Hyderabad, Bangalore and

Chennai

Launch of versa

2000

First car company in India to launch a Call Center

New Alto

Altura, a luxury estate car

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IDTR (Institute of Driving Training and Research) launched jointly with

the Delhi government to promote safe driving habits

1999

Maruti 800 EX ( 796cc, hatchback car)

Zen LX (993cc, hatchback car)

Zen VXi (993cc, hatchback car with power steering)

Omni XL ( 796cc, MUV, high roof)

Baleno (1600cc, 3 Box Car)

Wagon R

Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai

as social initiatives

1998

Maruti launches website as part of CRM initiatives

Zen D (1527 cc diesel, hatchback car)

Zen VX & Zen VX Automatic

New (Omni & Omni E) (796cc, MUV)

Launch of website as part of CRM initiatives

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1997

1998 Esteem (1299cc, 3 box car) LX, VX and AX

New Maruti 800 (796cc,hatchback Car) Standard and Deluxe

Produced the 2 millionth vehicle since the commencement of production

1996

Gypsy (E) (970cc, 4WD 8 seater)

Omni (E) (796cc, MUV, 8 seater)

Gypsy King (1298cc, 4WD, off road vehicle)

Zen Automatic (993cc, hatchback car)

Esteem 1.3L (1298 cc, 3 box Car)AX

Launch of 24-hour emergency on-road vehicle service

1995

Esteem 1.3L (1298 cc, 3 box car)VX

With the launch of second plant, installed capacity reached 200,000 units

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1994

Esteem1.3L (1298cc, 3 box car) LX Produced the 1

millionth vehicle since the commencement of

production

1993

Zen(993cc, hatchback Car), which was later exported in Europe and

elsewhere as the Alto

1992

SMC increases its stake

1991

Reaches cumulative indigenisation of 65 percent for all vehicles

produced

1990

Maruti 1000(970cc, 3 box), India's first contemporary sedan

1988

Installed capacity increased to 100,000 units

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1987

Exported first lot of 500 cars to Hungary

1986

Maruti 800 ( New Model-796cc, hatchback Car)

Maruti 800 ( New Model-796cc, hatchback Car)

1985

Launch of Maruti Gypsy (970cc, 4 WD off-road vehicle)

1984

Omni, a 796cc MUV

Installed capacity reached 40,000 units

1983

Maruti 800, a 796 cc hatchback, India's first affordable car.

Production was started under JV A

1982

License and JV agreement signed between Maruti Udyog Ltd. and SMC

of Japan

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1981

Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act,

1956

AWARDS :

2004

Maruti Suzuki was No.1 in Customer Satisfaction, No.1 in Sales

Satisfaction No.1 in Product Quality (Esteem and Alto) and No.1 in

Product Appeal (Esteem and Wagon R)

No.1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

Business World ranked us among the country's five most respected

companies

Business World ranked us the country's most respected automobile

company

Voted Manufacturer of the year by CNBC

Voted one of India's Greenest Companies by Business Today-AC

Nielson ORG-MARG

2003

Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10

automotive brands in "Most Trusted Brand survey 2003"

J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

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Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study

2003.

MUL tops in J D Power CSI (200 1) for 4th time in a row

2001

MUL tops in J D Power CSI (200 1) for 2nd time in a row: another

international first

2000

Maruti bags JD Power CSI – 1st rank; unique achievement by market

leader anywhere in the world

1999

MSM launched as model workshop in India; achieves highest CSI rating.

Central Board of Excise & Customs awards Maruti with "Samman

Patra", for contribution to exchequer and being an ideal tax assessee

1998

CII's Business Excellence A ward

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1996

Maruti wins INSSAN award for "Excellence in Suggestion Scheme"

Awarded the Star Trading House status by Ministry of Commerce

1994-95

Engineering Exports Promotion Council's award for export performance

1994

Best Canteen award among Haryana Industries as part of employee

welfare

1992-93


1991-92


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SOCIAL WELFARE:

Welfare Camps

Every year we organize blood donation camps along with Red Cross, in which

employees donate blood. Eye check-up camps, family planning related camps and

otherhealth camps are also organized periodically.

Medical support & welfare

The employees of Maruti have always donated generously to people affected by natural

calamities. They contributed Rs. 2 million to rehabilitate earthquake victims in Latur.

We also run a creche for the children of construction workers, which provides food

shelter and education for 85 children.

Education to underprivileged

DPS Maruti Shiksha Kendra, an education programme for the underprivileged, was

inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate the

children of below poverty line (BPL) families from the nearby villages of Gurgaon

district. 120 students in the age group of 5-8 years have already enrolled. DPS Maruti

Kunj is providing books, writing material and uniforms, refreshment and transport

facilities to these children.

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Education Programme for mothers

'Chetna', an education programme for mothers - is an another endeavour to provide

basic education to mothers of the students of DPS Maruti Kunj and surrounding villages.

Majority of students at the school is first generation learners. Therefore, the concept of

starting a movement of learning 'Chetna' for mothers has been promoted. The response

has been encouraging and about 130 mothers are attending it regularly.

ENVIRONMENT CONCERN:

Our environment Policy:

Prevent pollution.

Promote energy reduction and use of alternative energy.

Manage/ reduce those materials that put stress on environment.

Promote the three R's (Reduce, Reuse, Recycle).

Promote "Green" procurement.

Provide our employees with environmental education to

increase their awareness.

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SHANTESHA MOTORS PVT. LTD. Since the commencement of operations in 1981 we've been committed to the protection

of the environment and conservation of non-renewable .energy sources. Our proactive

approach depends not only upon meeting the expectations of the regulatory authorities

but achieving the high standards that we've set as a responsible corporate citizen.

This philosophy of trying to make a difference to the environment penetrates through

our employees to the process of manufacture and finally into our products.

Pollution Control Camps

Our elaborate system of Free Pollution Check-Up Camps which run at regular intervals,

is designed at making the cars already on the road operate more efficiently. It also

inculcates awareness for environmental protection among the many car users of India.

MPFI

We have introduced Euro II compliant MPFI engines in all our models. Along with

our vendors, we've made investments of over Rs. 60 million for introducing MPFI

technology compliant cars.

CNG

Maruti is a strong advocate of CNG, a more eco-friendly fuel alternative to diesel and

petrol. In our endeavour to provide a cleaner and greener option to the customer, we are

in the process of equipping an extensive dealer network to assist Maruti owners in fitting

CNG kits.

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Rain Water Harvesting

To recharge the aquifer, measures were taken to harvest the rain water through soak

pits, recharging shafts and water lagoons. These measures are capable of charging nearly

50% of the average annual rainfall at Maruti, into the Earth.

MARUTI CULTURE:

Our employees are our greatest strength and asset. It is this underlying philosophy that

has molded our workforce into a team with common goals and objectives. Our

Employee-

Management relationship is therefore characterized by:

Participative Management.

Teamwork & Kaizen.

Communication and information sharing.

Open office culture for easy accessibility

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To implement this philosophy, we have taken several measures like a flat organizational

structure. There are only three levels of responsibilities ranging from the Board Of

Directors, Division Heads to Department Heads. Other visible features of this philosophy

are an open office, common uniforms (at all levels), and a common canteen for all.

This structure ensures better communication and speedy decision-making processes. It

also creates an environment that builds trust, transparency and a sense of belonging

amongst employees.

The major players in small car segment are:

Hyundai Motors India Ltd

Telco

Fiat India Ltd

The battle royal in the India car market has entered the next phase. One old assumption

has been vindicated – that over 80% of the Indian car market is still confined to the small,

sub – Rs 4 lakh models. And that mod-size and digger models can only provide the icing

on the cake, not the cake itself to any manufacturer.

Quite apart from these specific lessons that each man learnt, there were several surprises

that the car market threw up. First world-class technology and quality were considered a

given now. Second, the Indian buyer had begun to expect model and engine upgrades as

frequently as his US or European counterparts. The Indica had to

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upgrade their engines in less than one year after launch, the power steering option barely

a year after it hit the market.

And finally, while the manufacturers could continue to refer to it as the ‘Indian small car

segment ’, the buyer characteristics were anything but homogeneous. There were distinct

group with distinct preferences. And the days of one model becoming the undisputed

heavyweight champion were over for good.

Brief description of major players in this segment.

Hyundai : Hyundai has become the undisputed number two in the Indian auto market,

and the only one-even rivals admit- with the capability of giving leader Maruti a run for

its money in the total volume stakes though Hyundai in India currently sells just about a

quarter of the numbers that Maruti does.

Hyundai got everything right because it got the value-price–technology equation almost

perfectly right from day one. The Santro was an instant winner from the day it was

introduced in the Indian market because it offered the optimum mix of space and

technology in the small car market, at a highly competitive price. And with easy

consumer financing available in the market,Hyundai did not have to work too hard to

persuade even entry-level car buyers to go for the Santro instead of the Maruti 800.

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And when it launched mid-size Accent some time later, Hyundai proved that it could get

its value-price equation consistently right across different segments.

But despite its great start, Hyundai made two mistakes and by Maruti it is also one under

the most pressure because after zooming to the number two spot, it cannot afford to skid

in the race. But Telco’s Indica is snapping at its heels. And Maruti's backlash is

expected to target the Santro more than any other model.

The two miscalculations that Hyundai made? First, while Hyundai Santro was harping on

the fact that it was a new generation car, it hadn't brought its latest engine technology to

India, it was a mistake that rival Matiz capitalised on once Euro-II pollution norms were

announced for the motors. Daewoo most of the fact that every Matiz was Euro-II

complaint –while Hyundai could offer an Euro-II version only at a higher price. Though the

latter moved quickly in a damage-control exercise, the Santro did lose a bit of its sheen.

But worse for Hyundai, it-miscalculated demand for its cars. The result: when demand

peaked for the Santro, it was in no position to offer the car off-the-shelf like its rivals.

Buyers had to wait for three months to get a Santro after booking it.

Hyundai is moving fast to sort out its capacity problem. Work will soon start on the

second phase of its Sriperumbudur car project, one year ahead of what was initially

planned. An additional investment of $400 million will help expand capacity from 1.2

lakh cars to 2 lakh cars per annum.

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That apart, the big worry for Hyundai is that other than the Santro (the Atos in Korea), it

doesn't 'have any other small car in its armoury. Unlike Suzuki which is primarily a small

car specialist, Hyundai can only introduce bigger cars in the Indian market either from its

own product range, or those of Kia Motors, which it took over last year.

And the car maker is planning to do precisely that. Over the next two years, It plans to

offer the Sonata, priced at around Rs "12 lakh, m the segment above the Astra/Lancer/City

category. 'The Sonata is a niche product. We hope to sell about 250 cars a month," says

Gandhi. Also, Hyundai will be launching a sports utility vehicle (SUV), currently under

development in Korea.

Hyundai is looking a bit vulnerable now because globally it is a minnow in the car

market. St lacks the sheer money power and product muscle to keep fighting the Fords and

Telco in any market. And if Ford does take over Daewoo Motors, Hyundai's number two

position in India could be seriously under threat.

Telco: The Home-Grown Challenger

When it first announced its plans,' scepticism abounded. With dozens of global car makers

hitting the Indian market with new products, few people would have given Telco much of a

chance with an indigenously-developed car. Especially since Telco did not boast a great

reputation for developing even world-class commercial vehicles, forget passenger cars.

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When the Indica hit the market, the consensus opinion was that Telco had goofed up again.

It had got its car and engine developed abroad - but all that was marred by the production

quality of the cars when they rolled out of the Telco plant in Pune. The Indica was riddled

with quality problems. A year down the line, almost everyone grudgingly admits that the

Indica has been a success. The Telco formula of pushing the biggest small car with a

rugged diesel engine has been a major hit in the semi-urban and rural markets.

Rajesv Dube, general manager, commercial (passenger cars), Telco, points out the

company's biggest advantage: low costs, fin other words, Telco can recover the costs of

introducing a new car at a much lower volume of sales than its rivals can. But the flip side

is that all global giants can amortise the costs of development by selling the same car

across different world markets, Telco can't.

At the moment though, the Telco strategy is to tap the niches first. The Indica, with the

diesel engines being pushed hard, was clearly aimed at a segment none of the rivals was

addressing. Similarly, the new car Magna it is planning to launch is again expected to be

a niche car addressing a particular need \n the Rs 12-16 lakh car segment. And in the SUV

market, Telco has already introduced the premium Safari, which again focuses on a

small niche.

It is a smart strategy as it avoids taking any of the big guns head on. But in the long run,

Telco knows it has to take on its rivals in the mainstream markets as well. It is ramping up

capacity to 160,000 from the current 120,000 cars anticipating that it will get the demand.

But Telco is also the weakest player in the small car market - and unless it keeps

springing surprises,it could be the first casualty in this round of the car battles.

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Fiat India Ltd:

Fiat the Auto Titan was established in 1899 by Giovanni Agnelli. The company first set

its foot on the Indian Turf in the year 1905, with the appointment of Mumbay Motor Cars

Agency as its Sales Agent. The relationship with India was further strengthened when it

signed a licence and servicing contract with Premier Automobiles Limited (PAL), paving

the way for manufacturing and selling of 1100 and 1100D Fiat, Padmini, Uno and the

latest offering being the cars from the project "178 World Car" range which includes

Siena, Siena Weekend and the Palio.

The company’s pivotal interest remains automobiles. It has the most admired and sought

after models worldwide to boast of which includes Fiat Lancia, Ferrari, Maserati, Alfa

Romeo etc., Siena being the latest offering to the Indian consumers.

Fiat is the only automobile manufacturer to have won the most coveted "EUROPEAN

CAR OF THE YEAR" award for a record nine times, more than any other car

manufacturer. These awards have not made the group complacent as it strives to achieve

the best in all aspects, which include the people, environment, technology and

energy.This is seen in the company’s endure towards Environmental issues and co-

operation with all environmental organizations.

Fiat has ambitious plans for making India its operational hub and plans to invest one

billion US dollars in the coming years.

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Later the company introduced the Uno — Europe’s favourite car for the last two decades

into India. The Fiat 178 World Car Project has been developed specifically to expand

production in overseas markets. This project includes international-class cars like the

Siena sedan, the Siena Weekend station wagon and the Palio hatchback.

Fiat has achieved a high level of localization for all its cars, and is making world-class

cars available in India at even more competitive and affordable prices. Fiat Automobiles

SpA owns the most-admired and sought-after models worldwide, including the Fiat

Lancia, the Ferrari, the Maserati and the Alfa Romeo.

Fiat is the only automobile manufacturer in the world that has won the coveted European

Car of the Year award nine times. It is also the only company in the world that

manufacturers recyclable cars.

In the pipeline are ambitious plans to make India its operational hub in Asia in the future

and invest US $1 billion here in the coming years.

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SHANTESHAMOTORSPVT.LTD.

INTRODUCTION:

SHANTESHA MOTORS PRIV A TE LIMITED is an authorized dealer for

Maruti

Udyog Ltd, for Marketing, Sales, Maruti Genuine Spares, Maruti Genuine Accessories,

Service and Repairs of Maruti range of vehicles.

HISTORY:

Shantesha Motors commenced operations on 20/5/2000 in Belgaum and is one of

the

good authorized dealers for Maruti Udyog Ltd. Today they have turn over of20 crores,

hence

making them one of the Maruti dealer in India.

Shantesha Motors have the excellent network of sales and services center in

Belgaum

and they are leading Maruti dealers in north Karnataka. At Belgaum Shantesha

showroom is

located near to K.L.E Hospital. The workshop located at Nehru Nagar. carries out after

sales operations, free service, paid service and Running repairs. Besides this the

workshop also in to selling of pre-owned cars and Ranks First for the sale of pre-owned

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cars in India. The stockyards situated at attach to showroom carries the pre-delivery

inspection of all the vehicles and gets them ready for the sales. It has

paved surface stocking area of about 50 to 100 Maruti vehicles.

Quality Management System:

Shantesha Motors has a documented and established quality management system

to ensure that

The documentation structure of Shantesha Motors can be represented in the

following manner.

1. QULITY MANUAL

2. QULITY SYSTEM PROCEDURES

3. WORK INSTRUCTIONS AND CHECKLIST

4. FORMS AND RECORDS

5. REFERENCE STANDARDS AND EXTERNAL MANUAL

The quality manual describes the ISO 9001: 2000 standards adapted at

Shantesha Motors.

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.


The quality management system procedure manual SM/BGM/PM/O 1 contents

the detail of how the processes in the organization are being conducted, control

and recorded and meet the customer demands

The work instructions and checklist contains how the specified activities are to

be carried out.

The forms and records support the activities carried out and controlled.

All the external manuals and standards are controlled.

Management Commitment:

The management of Shantesha is committed to quality management system

through leadership and actions. The management shall provides the basic infrastructure

and continually upgrade the work environment.

The management is also committed to

The quality policy and quality objective of organization.

Ensures that the policy is understood, implemented and maintained at all the

levels of the organization

Ensure focus on the customer requirement throughout the organization.

Ensure availability of necessary resources.

Review the established quality management system periodically through the

management reviews.

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Customer Focus at Sales:

The Field executives visit the customers and explain the features of the vehicle to

them

Demonstration and test drives shall be given whenever required.

The Performa invoice/price list terms and conditions will be given.

The order booking forms duly collected from the customer and clarity with

regard to the terms and conditions are explained and the copy id handed over to

customer along with the receipt or payment made.

Any amendment required by the customer, it should be recorded on the order

booking forms

The delivery is insured as per the checklist duly explaining all the features

mentioned in the checklist.

Customer Focus at Service:

a) The customer can book the vehicle for the servicing/repairs either through the

telephone or personally the front office.

b) The detail shall be entered in 'booking register' by the telephone operator.

c) The list of the vehicles shall be given to front office ~very morning to accept

the vehicles for servicing for that date.

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d) The customer can bring their vehicle for servicing without booking. However such

vehicle shall be accepted only after ensuring that there is enough capacity for the

booked vehicles.

e) On the bases of kilometers run by the vehicle and customer requirement, the

customer shall explained about the type of the servicing/repairs and spare

parts required and to ensure that the service station has the required capacity

to accept the vehicle.

f) Before accepting the vehicle, a mutually acceptable delivery time and date is

fixed with the customer.

g) The customer's consent shall be taken on the estimated cost of the

repair/service of the vehicle.

h) All the details of the work required along with the date and time of the

delivery and the established cost shall be recorded in the job order card before

commencement of the work.

i) Incase of any change in the terms any change in the services, the cost or the

delivery time then the client shall be informed verbally over the phone and

any change shall be recorded in the Job Order Card.

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Quality Policy:

The management of Shantesha Motors shall always remain committed to its

objectives for quality for with the main thrust on meeting the customer

expectation

and requirements.

The management's commitment to quality reflected in its quality

policy.

"We at Shantesha pledged to make quality a way of life through commitment to

continual improvement customer satisfaction and adhering to quality management

system"

The management ensure that the policy is understood implemented and maintained at all

levels of the organization and continual improvement in customer satisfaction.

At present our quality objectives are

We ensure that customer complaints do not exceed 8 per 10,000

vehicles.

We ensure that repeat job do not exceed 2 %

We ensure CSI of90% with minimum of 15% feed back

cards.

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We ensure SSI of80% at sales with minimum of20% feedback

cards.

We ensure to conduct 3 free emission/service check camps per quarter.

We ensure to launch I incentive scheme per

month.

We ensure to conduct 4 internal audits and 4 MRM's per financial year of quality

management system.

QUALITY MANAGEMENT SYSTEM PLANNING

The quality plan at Shantesha Motors comprises the identification of the

following.

The various models of vehicles from Maruti Udyog Ltd sold and serviced at

Shantesha Motors.

The various types of services done at Shantesha Motors.

The external manual acquired from Maruti Udyog Ltd to sell and service the

vehicles.

The various models of vehicles from Maruti Udyog Ltd. Sold and serviced

at Shantesha Motors.

Maruti-800 car

Maruti omni

Zen

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Alto

Wagon-R

Esteem

Versa

Baleno

Vitara

Swift

The various types of servicing done at Shantesha Motors.

Services-Free service and paid service.

Running repair.

Quick service repair.

Break down service.

The external manuals acquired from Maruti Udyog Ltd. To sell and service the

vehicles.

Sales policy bulletin

Marketing circulars

Service manuals

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Service circulars

Service bulletin

Warranty bulletin

Spares parts price

catalogue

Spares parts price list

Spare parts procedure manuals

Spare parts

bulletin

Spare parts

circulars

Maruti service quality standards

Customer care manual

Service marketing manual.

Competence Awareness and Training:

a) Recruitment is done as per MUL norms of education and

experience.

b) There exists well-defined system to identify and provide training to all the

personnel

procedure No. SM/BGM/PR/12.

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c) Induction training and on job training shall be

provided

d) All concerned shall be trained on the latest sales/service/spares/bulletins/circulars

from MUL.

e) As per the MUL scheduled training programme Executives/Mechanics/Manager

will be d,eputed for training.

f) Training records shall

maintain.

Identification and Tracebility:

Identification:

1. New vehicle, which has completed pre-delivery inspection, shall be identified as PDI-

OK on the windshield, MUL Invoice and job order card, PDI and stockyard egister.

2. Identification of vehicles at the service workshop shall be through vehicle model,

registration number and unique job order Nos.

3. Inspection and test status of service/repair of vehicles shall be identified through the

job order card.

4. Completed job order card and the stamp of the final inspector shall identify Final OK

vehicles.

5. Identification of spare parts shall be in the form of part Nos., as per Maruti

guidelines.

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6. Identification of new vehicles is by its colour, model, chassis and engine Nos., MUL

Invoice, stockyard register.

Traceability:

1. Traceability shall be established though vehicle registration No. Job order number

and the date of job order.

2. Traceability of new vehicle at stockyard is established through chassis and engine No,

keyno., and parking slot No.

Monitoring and Measurement:

Customer Satisfaction:

1. Feedback received from the customer on their perception and service experience

customer satisfaction measure (percentage) is generated using software supplied by

Maruti Udyog Ltd.

2. Results of customer satisfaction measure are discussed in the management review

meetings and counter measure for the continual improvement is initiated.

Internal Audit:

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There is a well-defined procedure No.: SM/BGM/04 to conduct internal audit and

examine

the implementation of Quality Management System.

Monitoring and Measurement of Processes:

1. Pre-sales process is monitored and measured by the number of enquires and the

closure

of sales.

2. Sales process is monitored customer personal docket checklist, commitment and

delivery,

SSI%.

3. In service, repeat jobs, customer complaints, feedback card %, CSI%, PSF%, final

inspection are monitored.

4. Statistical graphs are used to indicate the

measures.

Improvement

Continual Improvement

Shantesha Motors, Belgaum shall continually improve the effectiveness of the Quality

management System through commitment to Quality policy, Quality objectives as well

as

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use of audit results, management review meeting decisions, analysis of data, corrective

and

preventive actions.

Corrective Action:

There is a documented system procedure No. SM/BGM/PR/05 to implement corrective

action on all the non-conformities arising from:

Customer complaints

Repeat Jobs

System Non Compliances

Post Service Follow Ups

Post Sales Follow ups

CSI negative feedback

SSI negative feedback

Road test

Final inspection

Internal Audit findings

Supervision by supervisor\ Work Managers

External Audits.

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Preventive Action

There is a documented System Procedure No.SM/BGM/PR/06 to identify

potential Non-Conformities like recurring Non-Conformities determined from Repeat

job, Final Inspection, washing Quality as well as for potential Non-Conformities

determined during MRM, Meetings and Audits and Analysis of Customer Feedback.

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G.M.(Sales) G.M.(Works)

Sr. Exe (pre-Del)

Dy. Mgr (System)

Dy. Mgr (Sales)

Sr. Exe (Mgr Admn)

Asst. Mgr (Mktg)

Field Executives

Pre-del & Delivery Executive

Sr. Exe (System)

Sales Executive

Dy. Mgr (Sales)

Dy. Mgr (Sales)

Stockyard Asst Asst. Supervisor

System Operator

MechanicWashing


ORGANIZATION STRUCTURE OF SHANTESHA MOTORS PVT LTD.

Showroom and stockyard:

Chief Executive

Officer

Management

Representative

Sr. General Manager (Operations )

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SAMPLING

Selection of Sample:

Sampling allows us to concentrate our attention upon relatively small number of people and

hence devote more energy to ensure that the information collected from them accurate.

POPULATION: People from the city of Belgaum

SAMPLE FRAME: People who has own a four-wheeler car and prospect Buyers. SAMPLING SIZE: 100 UNIT

DURATION: 60 DAYS

SAMPLE METHOD: Specifically stratified Random sampling method

i.e. the whole Belgaum city was divided into four major geographical

Segments i.e. Bagynagar segment, Bogarways segment, Chidamber

nagar and J.N.M.C.segment.

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RESEARCH DESIGN

DEFINITION OF RESEARCH PROBLEM:

1. Management problem classification:

In Indian car industry, small car segments have played a very crucial and

significant role due to its economy, efficiency and effectiveness. Due to

invasion of foreign cars into Indian markets the pace of competition has hiked.

This has brought into market numbers of brands and their variants competing

with each other.

Hence in the meeting with sales manager and service manager, a research

project was discussed where both the managers wanted to analyze the buying

behaviour and the brand preferred by the customers in B-segment cars.

2. Situation analysis:

The Maruti Udyog Ltd has two types of service stations.

i) Authorized dealer with service station.

ii) Authorized service stations.

Shantesha Motors private Ltd. Comes under the first category i.e., authorized dealer with

service station but before Shantesha Motors there were two service station namely Achal

and Bharat. And also other local service stations.

3 .Model development:

The study will provide solutions to the problem of the management.

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a) Management will know the most preferred brand by the customers.

b)Management will know the buying behaviour of the customers.

4. Specification of information required:

a) To know the features considered by the customer while purchasing a car.

b) To know the facilities/services expected by the customers from the dealer of service station.

c) To know the means of Finance preferred by the customers.

.

DATA COLLECION APPROACH :

The information necessary for this survey is collected by tapping primary and secondary data.

Primary data:

a)Questionnaire

b)Personal interaction

Secondary data:

a) Related information from internet:

. b) Organization Report

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MEASURMENT TECHNIQUES :

The measurement technique used for this project are Questionnaires and

attitude scales.

SELECTION OF SAMPLE :

Sampling allows us to concentrate our attention upon relatively small number of people and

hence devote more energy to ensure that the information collected from them accurate.

POPULATION: People from the city of Belgaum

SAMPLE FRAME: People who has own a four-wheeler car and prospect Buyers. SAMPLING SIZE: 100 UNIT

DURATION: 60 DAYS

SAMPLE METHOD: Specifically stratified Random sampling method

i.e. the whole Belgaum city was divided into four major geographical

Segments i.e. Bagynagar segment, Bogarways segment ,Chidamber

nagar and J.N.M.C.segment.

SELECT THE METHOD OF ANALYSIS:

Data are useful only after analysis. Data analysis involves Converting a series recorded

observations into descriptive statements and information about relationship.

Hence concerned to this project method of analysis the data will be graphical

method,Simple Percentage method.

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ETHICS OF THE RESEARCH:

This will be note that the issues relating to the research will be review that

all the aspects will be certain and ethically sound. The information will be used

for academic purpose as well as the benefit of the organization.

DATA COLLECION METHOD:

The information necessary for this survey is collected by tapping

primary and secondary data.

Primary data:

a)Questionnaire

b) Personal interaction

Secondary data:

a) Related information from internet.

. b) Organization Report.

MEASURING TOOLS:

Data are useful only after analysis. Data analysis involves Converting a series recorded

observations into descriptive statements and information about relationship.

Hence concerned to this project method of analysis the data will be graphical method, Simple Percentage method.

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ANALYSIS

1. Please rank the following features when you buy a new car.

a) Look/ Aesthetics Rank No. of

respondentPercentage

1 4 42 16 163 8 84 40 405 4 46 4 47 - -8 12 129 12 12

Look.

14%

216%

38%

440%

54%

64%

70%

812%

912%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Look. It shows that Look is not their first preference, 40% of the respondents have given 4th rank for Look whereas only 4% have given 1st rank for the look.

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b) Price:

Rank No. of respondent

Percentage

1 12 42 60 163 8 84 8 85 - -6 - -7 8 88 4 49 - -

Price

112%

260%

38%

48%

50%6

0%

78%

84%

90%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Price. It shows that Price is their second preference,60% of the respondents have given 2nd rank for Price, whereas only 12% have given 1st rank for the Price.

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c) Mileage


Percentage

1 68 682 8 83 12 124 4 45 8 86 - -7 - -8 - -9 - -

Mileage.

168%

28%

312%

44%

58%

60%7

0%8

0%9

0%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Mileage. It shows that Mileage is their First preference i.e. 68% of the respondents have given 1st rank for Mileage.

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d) Maintenance


Percentage

1 4 42 - -3 56 564 16 165 4 46 8 87 - -8 8 89 4 4

Maintenance.

14%

20%

356%

416%

54%

68%

70%

88%

94%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Maintenance. It shows that Maintenance is not their First preference, 56% of the respondents have given 3rd rank for Maintenance, whereas only 4% have given 1st rank for the Maintenance.

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e) Safety features


Percentage

1 8 82 12 123 4 44 12 125 16 166 36 367 4 48 4 49 4 4

Safety features.

18%

212%

34%

412%

516%

636%

74%

84% 9

4%1

2

3

4

5

6

7

8

9

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The above graph shows rank wise percentage of customer’s preference for Safety features. It shows that Safety is not their First preference, 36% of the respondents have given 6th rank for safety, whereas only 8% have given 1st rank for the safety features.

f) Company’s service:


Percentage

1 - -2 - -3 - -4 12 125 12 126 12 127 16 168 44 449 4 4

Company's service.

10%2

0%3

0%4

12%

512%

612%

716%

844%

94% 1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for company service. It shows that company service is not their First preference, 44% of the respondents have given 8th rank for company service, whereas no one has given 1st rank for the company service.

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g) Space:


Percentage

1 - -2 - -3 4 44 - -5 40 406 8 87 4 48 12 129 32 32

Space.

10%2

0%3

4%4

0%

540%

68%

74%

812%

932%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Space. It shows that Space is not their First preference, 40% of the respondents have given 5th rank for safety , whereas no one has given 1st rank for the safety features.

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h) Ready availability:


Percentage

1 - -2 - -3 4 44 - -5 40 406 8 87 4 48 12 129 32 32

Ready availability.

10%2

0%3

4%4

0%

540%

68%

74%

812%

932%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Ready availability. It shows that Ready availability is not their First preference, 40% of the respondents have given 5th rank for Ready availability, whereas no one has given 1 st rank for the Ready availability.

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i) Comfort:


Percentage

1 4 42 4 43 4 44 4 45 8 86 20 207 16 168 4 49 36 36

Comfort.

14%

24%

34%

44%

58%

620%

716%

84%

936%

1

2

3

4

5

6

7

8

9

The above graph shows rank wise percentage of customer’s preference for Comfort. It

shows that Comfort is not their First preference, 36% of the respondents have given 9th

rank for Comfort, whereas only 4% have given 1strank for Comfort.

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2) What is your budget for a new car?

Purchasing power of the respondent

Number of respondent

Respondent in Percentage

< 3L 20 20%3-4L 64 64%4-5L 16 16%

The above graph shows that 20% of respondents are willing to spend less than 3

Lakh rupees, 64% of respondents are willing to spend between 3-4 Lakh rupees

and 16% of respondents are willing to spend between 4-5 Lakh rupees.

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3) Which of the following facilities/ services do you except from the dealer?

Facilities / Services No. Of Respondents

Quick service 84

1 Yr Free service 76

Discount on Accessories 12

Home Delivery 8

Discount on Spare Parts 24

Installment Payment Facility 72

Discount on Stereo System 8

Vehicle Registration Process 12

According to customer preference quick service, 1 Yr Free service and installment

payment facility are considered to be the most important facility / services from

the dealer / service station.

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4) Which means of Finance would you prefer?

Means of Finance

0%

10%

20%

30%

40%

50%

60%

70%

Employee Loan Bank Loan Car FinanceCompanies

Co-operativeSociety

It is found from the survey that 64% of the respondents prefer bank loan as the

means on finance followed by employee loan, car finance companies, and co-

operative society.

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Means of FinanceNo. Of Respondents

Respondent in percentage

Employee Loan 16 16%

Bank Loan 64 64%

Car Finance Companies 12 12%

Co-operative Society 8 8%


5) Rank the following in the order of preference:

a) Maruti DLX:


Percentage

1 4 42 4 43 4 44 - -5 - -6 12 127 - -8 - -9 16 1610 60 60

Maruti DLX.

14%

24% 3

4%4

0%5

0%

612%

70%8

0%

916%

1060%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Maruti DLX car. It shows that Maruti DLX car is not their First preference, 60% of the respondents have given 10th rank for Maruti DLX, whereas only 4% have given 1st rank for Maruti DLX.

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b) Maruti Zen:


Percentage

1 4 42 4 43 12 124 4 45 12 126 4 47 4 48 8 89 48 4810 - -

Maruti Zen.

14%

24%

312%

44%

512%

64%

74%

88%

948%

100%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Maruti Zen car. It shows that Maruti Zen car is not their First preference, 48% of the respondents have given 9th rank for Maruti Zen, where as only 4% have given 1st rank for Maruti Zen.

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c) Maruti Alto:


Percentage

1 64 642 8 83 4 44 8 85 4 46 8 87 4 48 - -9 - -10 - -

Maruti Alto.

164%

28%

34%

48%

54%

68%

74%

80%

90%

100% 1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Maruti Alto car. It shows that Maruti Alto car is their First preference i.e. 64% of the respondents has given 1st rank for Maruti Alto.

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d) Maruti Swift:


Percentage

1 4 42 8 83 64 644 8 85 4 46 4 47 - -8 8 89 - -10 - -

Maruti Swift

14% 2

8%

364%

48%

54%

64%

70%

88%

90%100%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Maruti

SWIFT car. It shows that Maruti SWIFT car is not their First preference, 64% of the respondents have given 3rd rank for Maruti SWIFT, where as only 4% has given 1 st

rank for the Maruti SWIFT.

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e) Maruti WagonR:


Percentage

1 - -2 4 43 - -4 8 85 8 86 4 47 56 568 8 89 8 810 4 4

WagonR

10%

24%

30%

48%

58%

64%

756%

88%

98%

104%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Maruti WagonR car. It shows that Maruti WagonR car is not their First preference, 56% of the respondents have given 7th rank for Maruti WagonR, whereas no one has given 1st rank for Maruti WagonR.

f) Fiat Palio

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Percentage

1 12 122 - -3 4 44 4 45 4 46 48 487 8 88 4 49 4 410 12 12

Fiat Palio.

112%

20%

34%

44%

54%

648%

78%

84%

94%

1012% 1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Fiat Palio

car. It shows that Fiat Palio is not their first preference, 48% of the respondents have given 6th rank for Fiat Palio, where as only 12% of the respondents have given 1 st rank for Fiat Palio.

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h) Hyundai Santro:


Percentage

1 4 42 44 443 8 84 4 45 12 126 8 87 4 48 8 89 8 810 - -

Hyundai Santro.

14%

244%

38%

44%

512%

68%

74%

88%

98%

100%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Hyundai Santro car. It shows that Hyundai Santro is not their First preference, 44% of the respondents have given 2nd rank for Hyundai Santro whereas only 4% of the respondents have given 1st rank for Hyundai Santro.

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i) Hyundai Getz:


Percentage

1 4 42 12 123 - -4 40 405 12 126 - -7 8 88 12 129 8 810 4 4

Hyundai Getz.

14% 2

12%

30%

440%5

12%

60%

78%

812%

98%

104%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Hyundai Getz car. It shows that Hyundai Getz is not their First preference, 40% of the respondents have given 4th rank for Hyundai Getz whereas only 4% of the respondents have given 1st rank for Hyundai Getz.

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j) Tata Indica:


Percentage

1 4 42 12 123 4 44 16 165 40 406 4 47 4 48 4 49 - -10 12 12

Tata Indica.

14% 2

12%

34%

416%

540%

64%

74%

84%

90%

1012%

1

2

3

4

5

6

7

8

9

10

The above graph shows rank wise percentage of customer’s preference for Tata Indica car. It shows that Tata Indica is not their First preference, 40% of the respondents have given 5th rank for Tata Indica whereas only 4% of the respondents have given 1st rank for Tata Indica.

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6) Do you own a car?

Response No. of Respondent Respondents in %

Yes 68 68%No 32 32%

Do you own a car?

68

32

0

10

20

30

40

50

60

70

80

Yes No

Per

cen

tag

e

Yes

No

The above graph shows that 68% of the respondents are owners of cars and 32%

of respondent have not owned car but are prospect buyers.

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7) Why do you opt for a four wheeler?

Purpose Respondent

Need 4

Comfort / Convenience 52

Status 12

4

52

12

0

10

20

30

40

50

60

Per

cen

tag

e

Need Comfort /Convenience

Status

Purpose for owning a car?

Respondent

It is found from the survey that 52% of the respondent opt four-wheeler for the

comfort / convenience but not for need & status.

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8) How did you get to know about this car?

Awareness No. of respondentPercentage

TV Advertisement 26 38.24Magazines / Newspaper 7 10.29Friends 22 32.35Existing Customers 9 13.24Car Finance Companies 4 5.88

How did you get to know about this car?

38.24

10.29

32.35

13.245.88

05

1015202530354045

TV

Adv

ertis

emen

t

Mag

azin

es /

New

spap

er

Frie

nds

Exi

stin

gC

usto

mer

s

Car

Fin

ance

Com

pani

es

Per

cen

tag

e

No. of respondent

The above graph shows that 38.24% of the respondents came to know about this

car through TV advertisement and 32.35% of the respondents came to know about

the car through friends.

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11) Please tick the following attributes of your car

a)Price Respondents PercentageExpensive 25 36.76Reasonable 43 63.24

PRICE

36.76

63.24

0

10

20

30

40

50

60

70

Respondents

Per

cen

tag

e

Expensive

Reasonable

From the above graph it is clear that 63.24% of the respondents feel that the car which they own is expensive and 36.76% feel that the price of the car which they own is reasonable.

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b)Style/Aesthetics Respondents PercentageStylish 51 75Simple 17 25

STYLE / AESTHETICS

75.00

25.00

0

10

20

30

40

50

60

70

80

Respondents

Per

cent

age

Stylish

Simple

From the above graph it is clear that 75% of the respondents feel that the car which they own is stylish and 25% feel that the car which they own is simple.

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c)

COMFORT

82.35

17.65

0

10

20

30

40

50

60

70

80

90

Respondents

Per

cen

tag

e

More comfortable

Less comfortable

From the above graph it is clear that 82.35% of the respondents feel that the car which they own is comfortable and 17.65% feel that the car which they own is less comfortable.

BABASAB PATIL

Comfort Respondents PercentageMore comfortable 56 82.35Less comfortable 12 17.65


d)

MAINTENANCE

72.06

27.94

0

10

20

30

40

50

60

70

80

Respondents

Per

cen

tag

e

Expensive

Reasonable

From the above graph it is clear that 72.06% of the respondents feel that the maintenance cost of the car which they own is expensive and 27.94% feel that the maintenance cost of the car which they own is reasonable.

BABASAB PATIL

Maintenance Respondents PercentageExpensive 49 72.06Reasonable 19 27.94


e)

FUEL EFFICIENCY

64.71

35.29

0

10

20

30

40

50

60

70

Respondents

Per

cen

tag

e

Satisfactory

Not satisfactory

From the above graph it is clear that 64.71% of the respondents feel that the fuel efficiency of the car which they own is satisfactory and 35.29% feel that the fuel efficiency of the car which they own is not satisfactory.

BABASAB PATIL

Fuel efficiency Respondents PercentageSatisfactory 44 64.71Not satisfactory 24 35.29


APPENDIXQUESTIONNAIRE

Please tell us about yourself

N a m e:______________________________________________

Age:________________________________________________

Sex:________________________________________________

Occupation:__________________________________________

1. Please rank the following features when you buy a new car. (Starting from 1 to 9, 1 for the most preferred and 9 for the least preferred)

Look/Aesthetics [ ]

Price [ ]

Mileage [ ]

Maintenance [ ]

Safety Features [ |

Company Service [ ]

Space [ ]

Ready Availability [ ]

Comfort [ ]

BABASAB PATIL


2. What is your budget for a new car?

< 3 Lakh [ ] 3-4 Lakh [ ] 4-5 Lakh [ ]

3. Which of the following Facilities/Services do you expect from the dealer?

Quick Service [ j 1 year free Insurance [ ]

Discount on Accessories [ ] Home Delivery [ ]

Discount on Spare Parts [ ] Installment Payment Facility [ ]

Discount on Stereo System [ ] Vehicle Registration Process [ ]

4. Which means of Finance would you prefer?

Employee Loan [ ] Bank Loan [ ]

Car Finance Companies [ ] Co-operative Society [ ]

If any other Specify____________________________________________

5. Rank the following in the order of preference. (Starting from 1 to 10, 1 for the most preferred and 10 for the least preferred)

Maruti DLX [ ]

Zen [ ]

Alto [ ]

Swift [ ]

Wagon-R [ ]

FiatUno [ ]

BABASAB PATIL


Fiat Palio [ ]

Hyundai Santro [ ]

Hyundai Getz [ ]

Tata Indica [ ]

Why do you rank the particular car as NO. 1?

6. Do you own a Car?

Yes [ ] No [ ]

(If No, skip the below Questions)

7. Why do you opt for a four-wheeler?

Need [ ] Comfort/Convenience [ ] Status [ ]

8. Do you find any difficulties in your Car?

Yes [ ] No [ ]

If yes, what are they?

Mileage [ ]

Space [ ]

Maintenance [ ]

Comfort [ ]

BABASAB PATIL

Spare Parts [ ]

Company Services [ ]

Service [ ]

Safety [ ]


9. Name and dealer of your Previous and Presently Owned Car.

Name of the Car: Previous 1____________ 2____________ Present __________

Name of the dealer: Previous 1____________ 2 ____________ Present ___________

10. How did you get to know about this Car?(Tick any one).

T.V advertisement [ ] Magazines/Newspaper [ ]

Friends [ ] Existing Customers [ ]

Car Finance Companies [ ] Any other please specify_____________________

11.Please tick the following attributes of your car.

a. Price: Expensive [ ] Reasonable [ ]

b. Style/Aesthetics: Stylish [ ] Simple [ ]

c. Comfort: More comfortable [ ] Less comfortable [ ]

d. Maintenance: Expensive [ ] Reasonable [ ]

e. Fuel Efficiency: Satisfactory [ ] Not-satisfactory [ ]

12. Given a Second chance which car would you buy from the same budget?

13. Please suggest any areas for improvement in your car dealer.

BABASAB PATIL


Thank you for your Co-operation.

BABASAB PATIL

FINDINGS

According to survey it is found that 68% of respondents Prefer Mileage as the

first most crucial feature considered while purchasing a car,and price is

considered as the second considerable feature i.e 60% and maintenance cost is

considered as the third considerable feature while purchasing a car i.e 56%.

It is found from the survey that 64% of the respondents are willing to pay 3-4

lakh for a new car,20% of the respondents are willing to pay less than 3 lakh

for a new car, and 16% of the respondent are willing to pay 4-5 lakh rupees for

a new car.

It is found that 84% of the respondent prefer Quick service as the most

preferred facilities\services expected from the dealer and the next preferred

facilities/services are one year free service i.e76% and Installment payment

facility i.e72%

It is found that 64% of the respondent prefer Bank loan as the most preferred

means of finance.

Maruti Alto stood first as the most preferred car among the B-segment cars

followed by Hyundai Santro and Maruti DLX stood last.

It is found from the survey that 68% of the respondents are owners of B-

segment cars.

It is found that 52% of customers opted car for comfort /convince rather than

need and status.

It is found that 38.24% of the respondents came to know about the car through

T.V advertisements and 32.35% of the respondents came to know about the

car through friends..

SUGGESTION

It is found that in this segment the important features considered by the customers while buying a car are mileage, price & maintenance. So manufacturer has to consider these aspects to attract and retain customers thus making an effort to build a good brand image.Discount on accessories and spare parts also act as influencing factors for purchase decision. So dealer can give discounts on spare parts and accessories, after sales for a period of a year or two to stimulate the customers.

Customers want service at their doorsteps but are unaware of the home

delivery facility provided by the dealers. So a measure has to be taken to

create awareness in this direction.

Most of the customers buy cars from bank loan rather than financial

companies. So the companies have to come up with attractive loan facilities to

their customers.

Word of mouth is effective media of communication. Hence the dealer should

keep the existing customers happy by providing good service and make

customers talk good about their service provided.

CONCLUSION

Belgaum although a small city, is dwelled by middle and higher-class people in

majority. Thus the market for four-wheeler has never been a dearth here. But of all the

varieties available in this segment, small cars are most preferred.

Customers in this segment want to adopt change into their life style. This has fostered

entry of varieties of small cars available nation-wide to flourish in this market. This

has enhanced the competition in this car segment. But Maruti with stood this

competition by retaining its market share to be the highest.

The results of the survey conducted showed that Maruti Alto Brand is the most

preferred car followed by Santro and it also showed the buying behaviour of

customers that the most of the customer purchase car based on mileage followed by

price and maintenance.

BIBLOGRAPHY

REFERANCE BOOKS:

Marketing research : Tull and Hawkins

Marketing research : A.Parasuraman, Dhruv Grewal and R.Krishnan.

INTERNET WEBSITES :

WWW.MARUTIUDYOG.COM

www.google.com

http://www.google.com/

http://WWW.MARUTIUDYOG.COM/

buying behavior of customers maruthi suzuki mba marketing project report

Documents

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shantesha

major geographical

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significant

series recorded

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