Analysis of the Pre-owned car market in Mumbai

Maruti True ValueGuide: Gautam Trehan

Shafiq ShaikhMMS B

Roll no.42

SITUATION ANALYSIS & PROBLEM DEFINITION

Objectives, Scope and Limitations of the Project of Study

To know the nature of the market for used cars in the Twin Cities. To enumerate the various players for used cars in the Twin cities. To enumerate the various reasons for customers opting a used car. To find out the awareness/ knowledge level of customers on the concept of

‘True Value’ To access the impact of promotional activities on the sale of used cars.

Hypothesis Ho :Preference for buying Pre Owned Car is more then New Car H1: Preference for buying Pre Owned Car is not more then New Car

METHODOLOGY OF STUDY

Source of Data  Primary Data: Systematic collection of information directly from respondents. This data is collected for the descriptive research. The survey data collected

during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer behavior.

  Secondary Data: The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for

helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, website, directories, external experts and miscellaneous report. 

  Data Collection Instrument Survey Questionnaire   Population For the purpose of this project self-administered questionnaire to potential customers and for standard commercial business enterprises

located in Mumbai city.   Sampling Method  Convenient Sampling

Sampling Frame List of standard commercial enterprises located In Mumbai, List of A2 segment car user and list of people who can afford A3 segment cars.

Sampling unit:  Standard Hotels, Business enterprises and households   Sample Size: 100  Sampling Method Samples are selected on Non probability convenient sampling method.  

Results and FindingsProfessionals:

36 % of Respondents are of age 25-35, 37 % of Respondents are of age 35-45, 23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater than 55

88 % of Respondents are male, 12 % of Respondents are Female 42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 %

of Respondents are under income Rs.1,50,000-Rs.2,00,000

81 % of Respondents are Married 31 % of Respondents have one child and 38 % of Respondents have two

children

50 % of Respondents considers budget while buying pre-owned car and 40 % of Respondents considers milage while buying pre-owned car,

40 % of Respondents heard about “Maruti True Value” Remaining 60% heard it from Advertisements, friends/neighbours 58% say they would not buy from ‘True Value’

Recommendations and SuggestionsProfessionals Target Segment- the target customers whom I suggest Bellad Motors

should concentrate is the advocates, lecturers and petty business men, because they are the respondents who are keen in buying pre owned cars.

The target can also be segmented age wise, 25-45 are the most interested segment in buying a pre owned car.

Students Most of the students want to buy a pre owned car from an un certified dealer, because

of the price factor, therefore when targeting the students category lowering the price should be considered. I suggest that the price can be lowered by not including the free service and warranty on the car, as the students do not mind it.

The expected price of the pre owned cars is from Rs 50,000- 75,000. The expected age of the car is mostly 3-5 yrs, which the company can consider these

aspects when targeting the students. More than 50% of the students are not aware of the True Value concept, which again

calls for advertisements from Bellad Motors.

Conclusion The study helped me gain valuable insights in Opportunity

Analysis and Consumer Behavior, towards buying a pre owned car. This project titled “, has been a knowledge gaining experience for me. By interacting with the respondents and making visits to the Uncertified Dealers.

I have understood that understanding customers is an art and it takes a very strong brand image for a company to retain & grow its market share. The results of the survey proved to be both encouraging and partly discouraging too.

The respondents were not very positive about Maruti’s ‘True Value’

THANK YOU