RESEARCH REPORT ON

COMPARATIVE ANALYSIS OF SALES STRATEGIES IN REFERENCE TO MARUTI SUZUKI V/S HYUNDAI MOTORS Towards Partial Fulfillment of Master of Business Administration (MBA) (Affiliated to U.P. Technical University, Lucknow) Guided By:Mr. Raj KumarMishra MBA Faculty

Submitted By:Fayyaz Ali Roll No. 1166070018 MBA IV Sem.

Department of Management

GOEL INSTITUTE OF HIGHER STUDIES, LUCKNOW Session 2012-13

ACKNOWLEDGEMENT It was a privilege for us to work in a reputed organization- COMPARATIVE ANALYSIS OF SALES STRATEGIES IN REFERENCE MARUTI SUZUKI VX HYUNDAI MOTORS. . This has given us an opportunity to work in a truly professional environment where team work score over individual effort, where there is a helpful atmosphere. A well planned, properly executed and evaluated training helps a lot in inoculating good work culture. The project on COMPARATIVE ANALYSIS OF SALES STRATEGIES IN REFERENCE MARUTI SUZUKI VX HYUNDAI MOTORS has been made to facilitate effective understanding about the marketing aspects. The project training has provided me an opportunity to gain practical experience, which has helped me to increase my sphere of knowledge to a greater extent. I have tried to summarize all our experience and knowledge acquired up till now, in this report. This project is a keen effort to obtain the expected results and fulfill all the information required. At the end annexure and bibliography are given for effective understanding. I am grateful to COMPARATIVE ANALYSIS OF SALES STRATEGIES IN REFERENCE MARUTI SUZUKI VX HYUNDAI MOTORS required support. for providing

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INDEX Preface Acknowledgement Chapter-1: Introduction on topic Chapter 2 : Literature Review Chapter - 3 : Research Methodlogy Research Objective Research Design Sampling Plan Sampling Technique Sample Unit Chapter - 3 :Data Analysis and Findings Chapter 4: Suggestion and Recommendation Chapter 5: Conclusion Bibliography Annexure PAGE NO. 2 3 h 31 49

55 71 73 74 75

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INTRODUCTION

Introduction Comparative Study of Marketing Strategies of Two Automobile Companies : A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Its a written plan which combines product development, promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how they will be achieved within a stated timeframe. Marketing strategy determines the choice of target market segment, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena.

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Marketing strategies are dynamic and interactive. It may differ depending on the unique situation of the individual business.

On the Canvas of Indian Economy, Auto Industry occupies a prominent place. Automobile sector is one of the core of Indian Industry.Continious economic liberalisation over the years by the Government of India has resulted in making India as one of the prime business destination for many global automotive players.

One of the largest industries in India, automotive industry has been witnessing impressive growth during the last two decades. Indian automobile industry has a mix of large domestic private players such as Tata, Mahindra, Bajaj, Ashok Leyland and major international players including GM, Ford, Toyota, Honda, Hyundai, etc. To remain in this competitve market on has to come up different ides and strategies.

Various Marketing Strategies enables a firm to expand business activities for market reputation, to satisfy human wants , to lead to specialisation and efficient performance of production function climaxing in econimic 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.

However, marketers must understand that getting customers to commit to a decision, such as a purchase decision, is only achievable when a customer is ready to make the decision.

Title of Study Comparative Study of Marketing Strategies of Two Automobile Companies

Objective of Study - To know the various sales strategies used by Maruti Suzuki and Hyundai Company to attract maximum number of customers. - To know which company offers better cars, better after sales services and by which company cars customers are satisfied most. - To know the demand of Automobiles. - Competition from other car manufacturers. -To know the trend in Market. - To know which car is more demanded by Customers. - Through which strategies maximum customers are attracted. - To know recession effect on sale of cars

Scope of Study - Company will come to know what attracts Customers. - Company as well as Dealers of Maruti Suzuki and Hyundai will come to know that which are the criterias customers look for before buying car.

- Company and Dealers will also come to know the future changes which will be require to satisfy customer needs and wants.

Methodology of Data Collection Primary Data:Visiting various Dealers and asking them about their promotional strategies and requirement of customers. Asking to users of Maruti and Hyundai about their preference, criterias while buying car and their experience with dealers and their expectations from dealers. Secondary Data:Magazines. Websites of Hyundai motors and Maruti Suzuki Period of Study:The Period of Study is from JUNE-2012 TO AUGUST-2012

Maruti Suzukis Profile

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 capcabilities 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 lanuched 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, 45% in B seg and 86% overall. The company has a portfolio of 18 brands, including

800 Omni Gypsy WagonR Alto Swift Estilo SX4 Grand Vitara (Imported) Swift DZire A-star Ritz Eeco Alto K10 Kizashi

(Launched 1983) (Launched 1984) (Launched 1985) (Launched 1999) (Launched 1997) (Launched 2005) (Launched 2007) (Launched 2007) (Launched 2007) (Launched 2008) (Launched 2008) (Launched 2009) (Launched 2010) (Launched 2010) (Launched 2011)

Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car.

Maruti XA Alpha based compact SUV to compete with the Ford EcoSport & Renault Duster will be launched in the year 2014. In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. 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.

In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media messages and a state-of-the art driving training and research institute that it manages for the Delhi Government.

The company's service businesses including sale and purchase of pre owned cars (TrueValue), lease and fleet management service for corporates (N2N), Maruti Insurance and Maruti Finance are now fully operational.

WORK
FACTORS CONTRIBUTING TO OVERALL SATISFACTION GENERAL DISCRIPTION OF MODELS

MARUTI 800:Maruti 800 is a city car manufactured by Maruti Udyog in India .It used to be the largest selling car in India until the Maruti Alto recently took that title. It is also exported to a number of countries in southeastern Asia including Bangladesh and Sri Lanka, and to some South American markets (as Chile, sold as Suzuki Maruti), and was available in selected European markets between 1988 and 1992, sold as the Suzuki Maruti. In Morocco it is currently sold as Suzuki Maruti (as of March 2008). The car comes in different versions including one with air conditioning and one without. It was launched in December 1984 with almost 100% imported components.

MARUTI OMNI The Maruti Omni is a microvan manufactured by Indian automaker Maruti Udyog Limited. The first version of Maruti Omni had the same 796 cc engine as the Maruti 800 city car. This was the second vehicle to be launched by Maruti, one year after the 800, in 1984. Later version of the Omni includes the

Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle Omni XL - 1999, same engine, modified with a higher roof.

Omni Cargo LPG - 2004, created to answer the growing popularity of this car being used as an inter-city cargo vehicle.

Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit, authorised by the Indian RTOs (Regional Transport Offices). This makes it the most economic 4 wheeler in India, as far as the driving costs are concerned

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MARUTI GYPSY

The Maruti Gypsy is a four wheel drive SUV based on the Suzuki SJ long wheel base.Produced in India, it is also a common sight in Chile and Kenya. Within Europe, it is most often found in Malta and Hungary. In contrast to the Suzuki, the Maruti is available with 4 seats and a sizeable trunk. The Maruti Gypsy is available as a "soft top", "hard top " and as an "ambulance car". In India, it is widely used by the police and defense forces. In civilian use, the Gypsy is a popular choice as a low-cost SUV and is a common sight at rally events.

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MARUTI WAGON-R The Maruti Wagon-R is a made for India version of Suzuki Wagon R. The Wagon-R was born out of Japanese kei-jido-sha restrictions which dictated a limited length and engine size. This boxy, tall-boy design has now completed five years of presence on Indian roads. Now the car has found a market for itself, especially among young Indian urban professionals who don't mind its boxy slab-sided looks, but value its Maruti lineage. The car is currently among India's top five best-selling cars.

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MARUTI ALTO:The Maruti Alto is a city car manufactured by Maruti Udyog in India. It is the bestselling car in India.It is India's largest selling car and has recently crossed the 1 million production figure.It is exported to a number of countries including Bangladesh and Sri Lanka, and to Chile. Alto has crossed the 150,000 export target. The popularity of the Alto has increased over the past few years, mainly due to the reduction in prices. This reduction in prices has mainly come in due to the reduction in excise duty over time. It has now become the first choice of young car buyers intending to upgrade from a 2 wheeler. Some of its appeal is from stylish looks, attractive features, and impressive fuel economy at very affordable prices compared to the other cars in the Indian market.

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MARUTI VERSA

The Maruti Versa is a micro van produced by Maruti Udyog Limited and sold in India since October 2001. The Versa is a clone of the now discontinued Suzuki Carry. It is the second van released by Maruti Udyog since the Maruti Omni was released in 1984. There are two basic versions of this car in production; the two 8-seater DX/DX2 versions, and the 5-seater STD version. The DX2 version of the Versa is equipped with twin air conditioners for front and rear.

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MARUTI SUZUKI SWIFT

The MARUTI Suzuki Swift is name plate marketed by Suzuki carried by vehicles of three distinct derivations:

Generations I, II, III: a super mini that began as an export nameplate of the Japanese domestic market of suzuki .

Generation IV: the current JDM, Europe and Oceana generation, a significant departure from the previous models, marketed solely under the nameplate "Swift". (this article)

Canadian Swift+: the current Canada-only generation marketed under the Suzuki swift. Currently this varient is hot seller in India in the mini car segment.

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MARUTI SUZUKI SX4

In an attempt to strengthen its position in the of Sedan cars market, Maruti Udyog Ltd. has launched its premium model bearing name SX4. After Maruti Suzuki Swift, SX4 is the second international model being launched in India. Suzuki SX4, is an A3 segment sedan car, with a perfect combination of style, performance, safety and comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from latest and efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power. Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.

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MARUTI SUZUKI DEZIRE Maruti Swift Dzire is the new entry level sedan from Indian automaker Maruti Suzuki. Launched on March 26 2008, Maruti DZiRE is based on the popular Maruti Swift platform. The DZire replaces Maruti Suzukis popular entry level sedan, Maruti Suzuki Esteem, production of which was discontinued in late 2007. Maruti Suzuki has introduced DZire only in the Indian market. The car is pitted against the other entry level sedans in the Indian market, such as the Mahindra Renault Logan and the Tata Indigo.

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MARUTI SUZUKI ESTEEM

Sophisticated big structured Maruti Suzuki esteem is one of the old car of the Maruti Udyog group. To run this huge car its engine is made of lightweight all-aluminum. This contemporary engine has capacity of 65 bhp at 6000 rpm . According to *Mileage (Auto India , Nov 2005), Esteem holds the topmost position on mileage among the other category of cars including the small cars. The Esteem was introduced in the global market in 1995 as Suzuki's first attempt in the compact segment, at the time dominated by European cars such as the Volkswagen Bora/Jetta and Opel Astra, and Japanese models such as the Nissan Sunny/Sentra and Toyota Corolla. As a North American replacement for the Suzuki Swift sedan (the 3-door hatchback remained after it was redesigned in 1995), it was built on a slightly stretched Suzuki Cultus platform for improved cabin room, but otherwise sharing most of internal components with the smaller model and marketed as a distinct model

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MARUTI SUZUKI BALENO The Baleno has the looks and feel of a winner. This was Maruti Udyog's first Dsegment car launched in India to compete with the Mitsubishi Lancer and the Honda City. This is also Suzuki's biggest passenger car and in Japan and other markets. The Baleno is called the Cultus in Japan. Suzuki restyled the Baleno in 1999. The car was given a new front end, with a rounder grille and new headlights, and the engine lineup was expanded.

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MARUTI SUZUKI GRAND VITARA

The Suzuki Grand Vitara is a compact SUV, namely a long-wheelbase version of the Vitara, produced by the Japanese automaker Suzuki since 1999. It was face lifted in 2002 and 2004, and redesigned in 2006. A rebadged version was sold in North America by General Motors as the Chevrolet Tracker. The Tracker is sold in Latin America, but Mexico, as Chevrolet Grand Vitara. In Mexico, Grand Vitara and Tracker are different vehicles, sold by Suzuki and Chevrolet respectively The 2006 model has had a structural redesign with a new ladder-boxed chassis integrated into a unibody construction. In India, it is sold as a Maruti.

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MARUTI SUZUKI ZEN-ESTILO

Estilo has got Wagon R's engine and chassis and Suzuki MR Wagon's shape. Whatever remains is taken from Zen, well does anything remain actually? This is the mixture of zen and wagon -R . 'Zen Estilo'. In essence its stylish Wagon R, Japan's MR Wagon, combination of the two or anything but Zen. It seems Maruti wants to exploit Zen brand-image hence named this car after Zen. With this model MSL has given its B segment a new variant by which it may compete with the models of other company.

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Hyundai Motors Profile

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 Getz Prime, i10,Eon and the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.

Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger car manufacturer, registered total sales of 616,039 units vehicles in the calendar year (CY) 2011, an increase of 41.6% percent over CY 2010. In the domestic market it clocked a growth of 13.6%percent with 30402 units in 2011, while overseas sales grew by 11.2 percent, with exports accounting for 240,25 units in 2011.

HMIL's manufacturing plant is located near Chennai which has advanced production quality and testing capabilities in the country. Inorder to provide the Indian customer 22

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 329 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 75,000 people worldwide, Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.

Hyundai Motor Company, S.Korea, the parent of HMI, has been doing considerable work on sustainable Environment Management . The company has a well defined framework in place for developing products that reduce pollutant emissions and processes for preservation of natural resources and energy along all the stages of the product lifecycle from production, sales, use to disposal and has been awarded the ISO 14001 certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.

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Cars of Hyundai

Hyundai deals in wide variety of cars which includes Atos/Atoz/Santro Coup/Tiburon/Tuscani Dynasty Elantra/Avante/Lantra Eon Equus/Centennial Excel Scoupe ix20 Genesis Genesis Coupe Getz/Click/Getz Prime/TB Grandeur/Azera/XG i10 i20 i30/i30cw/Elantra Touring Hyundai i40 Lavita/Matrix Pony

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Santamo Sonata/i45 Stellar Veloste HISTORY OF INDIAN AUTOMOBILE INDUSTRY PRE- LIBERALIZATION PERIOD Since Independence The Car Industry was closely monitored and controlled by the government till 1981. Limited choices were available to the car buyers due to the limited manufacturers and tight supply. Hindustan Motors (HM) and Premier Automobile (PAL) that were set up in 1940's dominated the vehicle market and industry. In the 1950s, the arrival of Tata Motors, Bajaj Auto, and Mahindra & Mahindra led to steadily increasing vehicle production in India, while the 1960s witnessed the establishment of the two- and three-wheeler industry in India.

But between 1970 to the economic liberalization of 1991, the automobile industry continued to grow at a slow pace due to the many government restrictions. However, the automotive industry witnessed tremendous growth after the entry of Maruti Udyog in the 1980s.

In 1981 the government decided to review their car industry policy and found that the segment was neglected and there was a big market available for cars. The existing cars available in the market were costly and technically less sound with compare to international standard. Then government initiated dialogues with Suzuki Motors, a

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Japanese car manufacturing company, finalized a joint venture, and formed a company named Maruti Udyog Limited (MUL). The initial venture was between Government of India with a share of 74% and Suzuki Motor with a share of 26%.

That was a revolutionary step taken for the car industry in India. In 1983 MUL launched its first car in India (Maruti 800) with a price tag of Rs.40,000/-. This development was a big shock to the existing car manufacturers and they also rushed to improve and increase their product line. After the lifting of licensing in 1993 by government, 17 new ventures came up, of which 16 are for manufacture of cars. Today, almost all of the major global players are present in India. The automotive industry is today a key sector of the Indian economy and a major foreign exchange earner for the country.

Government

1981 was the year when government taken a revolutionary initiative to review and reform its policy related to car industry. Now getting permission to produce cars in India is easier and new entrants are coming almost every year. Government has also imposed heavy imposed heavy import duties on imported vehicles to safeguard the car manufactured locally.

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POST- LIBERALIZATION PERIOD

Following the economic reforms of 1991, the automobile section underwent delicensing and opened up for 100 percent Foreign Direct Investment. A surge in economic growth rate and purchasing power led to growth in the Indian automobile industry, which grew at a rate of 17% on an average since the economic reforms of 1991.

India's automotive components industry is being urged by the government to partner with overseas firms with the aim of making India a platform for outsourcing as well as a global R&D hub. As the Indian vehicle production industry has grown, so has the domestic supplier industry. But the global auto industry's search for lower cost and more international outsourcing has led to a sharp growth in component output and exports in recent years.

The positive demographic factors, stable macro-economic environment and pro-reform policies of the government, low manufacturing costs, availability of skilled labor has attracted almost all major global auto players making their way into India like GM, Ford, Daewoo, Honda and Toyota The intense competition has compelled the manufacturers to launch the latest global offering in India as early as possible. It has also enabled to keep the prices of the vehicles under check. The consumers, in turn,

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have benefited from wide choice of models, technologically advanced cars and better service from the car manufacturers.

Major Manufacturers in Automobile Industry and their Cars

Maruti Udyog Ltd. Cars:800,Omni,Gypsy,WagonR,Alto,Swift,Estilo,SX4,Grand star,Ritz,Eeco,Alto K10,Kizashi,Maruti Ertiga Vitara,Swift DZire,A-

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Tata Motors. Cars:Aria,IndicaV2,IndicavistaIndigo,IndigoCS,IndigoManza,IndigoMarina, Indigo V series,Indigo XL,Nano,Safari,sumo,Sumo Grand MK II, Sumo Victa,

Hyundai Motor India Ltd. Cars:Atos/Atoz/SantroCoup/Tiburon/Tuscani,Dynasty, Eon,Equus/Centennial,Excel,Scoupe,ix20, Genesis,GenesisCoupe,Getz/Click/Getz,i10,i20,i30/i30cw/Elantra Lavita/Matrix,Pony,Santamo,Sonata/i45, Stellar,Veloste Honda Cars:- Honda Brio,Jazz, City, Civic, Accord,CR-V BMW Cars:- 1 series,3 Series, 5 Series, 6 Series, 7 Series,X1, X3,X5,X6 and Z4. Other Automobile Companies are:Skoda Toyota Hindustan Motors Ford Toyota Mahindra and Mahindra Elantra/Avante/Lantra,

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General Motors Mercedes

EVOLUTION OF AUTOMOBILE INDUSTRY

EVOLUTION OF AUTOMOBILE INDUSTRY

Initial Years Manufacturing Licensed High import customs duty

Early to mid 90s was Sellers market and

Mid 90s- 2011 LongBuyers Market

waiting periods on Delicensing in 1993 Increase in Indigenization

Steep excise duties & sales Removal tax 2 Major Players restrictions.

of

CapacityEasy Auto Finance

Decrease in customs & excise. Manufacturers

diversifying

into related activities: Premier Automobiles Ltd Auto & Hindustan Motors finance boom-moreFinance lease, fleet

players (foreign banks & nonmanagement, insurance and banking schemes). companies, better

1980s

Used car market.

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Entry

of

MUL,

better

Variety of Options available to choose from.

product, with Govt support. Sellers Market. Long waiting periods. fig:- 1

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LITERATURE REVIEW COMMON MARKETING STRATEGIES OF AUTOMOBILE COMPANIES

Advertising in News papers and Magazines:-

In this companies advertise about the car in various local newspapers like Economic times 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. Company also tries to advertise through various magazines like Auto Cars, Overdrive, etc.

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Grand Launch :-

Recently Tata Nano car was grandly launched and created a buzz in market. After the launch media aggressively took interest in providing the minute details about the car to the customer by showing test drives, etc. Once the car is launched they give adds in every possible newspaper, car magazines, put hoardings, display car models in the malls.

Company provides exchange offers to customers :-

This is one of the most effective ways adopted by the companies and very successful marketing strategy, which has helped company increase their sales.

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In this method, companies provide option to buy a new car of your choice in exchange of their old cars, but the price of old car is decided by the dealer by looking at its condition. It helps customers, as they dont need to go anywhere else to sell their old car. This also helps companies to increase their sale of new cars.

Adding Star Value to product- Brand Ambassador :-

Companies choose brand ambassadors for their cars to reach wide masses. For e.g. Shahrukh Khan promotes Hyundai, Abhishek Bachan promoted Ford Fiesta, Saif Ali Khan and Rani Mukherjee promoted Chevrolet Aveo and Amir Khan promoted Toyota Innova. Ambassadors give a special identity to the products.

Companies have started sponsoring reality shows for better visibility :As we all know reality shows are making all time big in television and entertainment industry. This is really a smart move by automobile companies to gain visibility through reality shows. The reality shows are aired all over the world and huge number of people watch it. So companies sponsor such shows and get noticed.E.g. Maruti sponsored Indias Got Talent show on Colors channel and gifted Ritz to the winner. Indian Idol winner was also gifted with Maruti SX4.

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Mall Displays

Various companies display their cars in Malls so as to get prime attention. People go in Malls for shopping and hangouts with their friends and family. They conduct small contests and give gift hampers as prize. Thus they try to attract crowd towards them.

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Companies enter market with help of Films

In terms of marketing strategies Chevrolet Aveo found a unique way of advertising by way of a Yash Raj Film production, Tara Rum Pum. The main motive behind this was to popularize and promote the product in youth.

Companies Sponsor Go- Karting events

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Go-karting events are really booming up among young crowd. And thats the reason we see craze for participating in go-karting events is on high. People have started taking interest in the sport and huge crowds turn up for such events. But for sure car companies would to not like to miss chance of visibility they get in such competitions.Few years before Maruti Suzuki sponsored Autocross rally. Similarly Tata Engenieering has sponsored Narayan Kartikeyan as Indias Entry in to the World Series motorcar racing.

Personal selling Personal Selling largely takes place at the Dealers End. The way customer is attended depends mainly on the Dealer as he acts as an interface between the company and the Consumer. The various cases in which Personal Selling takes place is Individual Sales, Corporate Sales, Sales Presentations, Fair and trade Shows. Mostly in case of Individual Sales the Customer goes to the showroom and takes a look at the product. There he is attended to by the Sales Personnel of the Dealership. Sometimes the Senior Sales Executive has to make Sales Presentation to Corporate Buyers. Personal Selling is also practiced at Trade Fairs and Auto Shows wherein the Company appointed Sales Personnel attend prospective customers and also book their orders.

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Market Share Of Automobile Companies

% Market Share

4.3 6.7

3.9

10.1

46.9

13.5 14.6

Maruti Suzuki Ltd. Hyundai Motor India Ltd. General Motors India Pvt Ltd. Others

Tata Motors Ltd. Mahindra & Mahindra Ltd. Honda Siel Cars India Ltd.

fig : 2

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Above market share graph shows us that in automobile industry still Maruti Suzuki is enjoying highest market share. And then comes companies like TATA and Hyundai Motors India Ltd.

Marketing Strategies used by Maruti Suzuki

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.

Some of the strategies used for cars were:-

Baleno: Missed the flight catch Baleno The most comfortable Car even in long drives. Esteem: My Daddys Big Car Affordable mid size car

Alto: Lets Go The fuel efficient and affordable car

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After Sales Service:- Kya yahan Maruti Service Station hai Availibility of service stations even in the remotest place in the country.

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.

Tie up with many banks

To promote its bottom line growth, Maruti launched Maruti Finance in Jan 02. Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI Ltd, Kotak Mahindra Bank, Standard Chartered Bank etc.

Exchange offers

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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.

SBI Maruti Car Loans The countrys largest bank and the largest car maker have joined hands to make affordable car finance available to more and more people across the country. The mega alliance makes car loans available at lower interest rates to a wider section of people, with transparent terms and conditions.

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.

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MARKETING STRATEGIES OF HYUNDAI

Advertisements Hyundai had used Bollywood star Sharukh Khan as Brand Ambassador for promoting their car. Through this they tried to attract the customers.

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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

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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 second hand 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. 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.

Events at Corporate Office and Banks

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.

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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.

INTERPRETATIONS TO QUESTIONAIRRE

Dealers Survey

Relation of Marketing Strategies and sales of product

Marutis Survey:From the survey of 5 dealers it was found that every dealer positively replied that marketing strategies had helped them to increase the sales of their product. Hyundais Survey:-

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Even 5 Hyundai dealers positively replied that marketing strategies helped them to increase the sales of their product.

Benefits of Marketing Strategy

Marutis Survey:Dealers replied that from the various marketing strategies enquiries for the new launches increases and thus indirectly sales. It also increases references and contacts. Hyundais Survey:Dealers replied that strategies created awareness amongst customers and increases walkins.

Promotional Strategies used

Marutis Survey:Maruti dealers conduct various events at malls, at workshops and at near banks and government offices. They also give advertisements in local newspapers and distribute pamplets. Hyundais Survey:Dealers conduct cold callings i.e. calling old customers. They give advertisement in papers, conduct roadshows and conduct service checkup camps. Gives exchange offers. 46

Attraction of Customers

Marutis Survey:Dealers replied that most of the customers are attracted through media advertisements and mouth publicity and also through old references. Hyundais Survey: Dealers replied that most of the customers are attracted through references and walk-ins and mouth publicity also helps in attracting customers to new product.

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Promotion through Media

Marutis Survey:Most of the dealers felt that media promotions are more attractive than other medium because of its mass reach.

Hyundais Survey:Hyundai dealers also had more positive reply for media publicity rather than other mediums.

Effect of Grand Launch of a Car

Marutis Survey:Dealers replied that grand launch of the car makes selling easy only in initial stage but afterwards it depends on the product. Hyundais Survey:Dealers think that it helps to attract customers attention but afterwards it depends on many other factors like quality, performance, service, etc

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Most demanded Car model

Marutis Survey:Most of the dealers replied that swift is the most demanded car amongst all Maruti cars, while next best alternative is Alto.

Hyundais Survey:Dealers found i10, i20 and santro as the most demanded cars amongst other Hyundai cars.

Best milage Car

Marutis Survey:Dealers replied that Ritz and Alto gives best mileage. Hyundais Survey:Dealers replied that i10 and santro cars mileage is best amongst others.

Customer Preference

Marutis Survey:Dealers replied that customers prefer petrol version more. Hyundais Survey:Here also customer demands more petrol version only. 49

Criteria in the Buyers Mind

Marutis Survey:Dealers replied that most of the customers look out for every criteria i.e. quality, comfort, performance, mileage and price. Hyundais Survey: In Hyundai also customers prefer all the above criterias but look for price and comfort more.

Biggest Competitor

Marutis Survey:Maruti dealers replied Hyundai as the biggest competitors. Hyundais Survey:Hyundai dealers found Maruti as their biggest competitor.

Complete Package Car

Marutis Survey:Dealers rate Swift as a no. 1 car for its complete package. Hyundais Survey:Hyundai rate i10 and i20 as their no. 1 car for complete package.

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RESEARCH METHODOLOGY

DEFINITION OF RESEARCH

1. A systematic search for knowledge 2. Movement from known to unknown. 3. Research in common refers to search for knowledge. One can also define research as a Scientific and systematic research for pertinent information on specific topics.

Research Methodology is a way to systematically solve the research is done scientifically. In it we study the various steps that are generally adopted by a research in studying his research for the researcher to know not only the research methods/techniques but also the methodology.

The research involves the following steps: -

1-DEFINES THE PROBLEM AND RESEARCH OBJECTIVE: If the problem is clearly defined it is half solved. The problem objective here is to identify the sales strategies adopted by leading car Manufacturer Company.

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RESEARCH DESIGN: -

A research design is the specification of methods and procedures for acquiring the information needed. It is the overall operational patter or framework of the project that stipulates what information is to be collected from which sources by what procedures.

Research design can be grouped into three categories:-

1) Exploratory Research

2) Descriptive Research

3) Casual Research

1. EXPLORATORY RESEARCH: - An exploratory research focuses on the discovery of ideas and is generally based on secondary data. It is preliminary investigation which does not have a rigid design. 2. DESCRIPTIVE RESEARCH: - A descriptive research is undertaken when the researcher wants to know the characteristics of certain groups such as, sex, educational level, income, occupation etc.

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3. CAUSAL RESEARCH: - A casual research is undertaken when the researcher is interested in knowing the cause and effect relationship between two or more variables. Research design: The study is based on descriptive research design because the data were collected to reveal accurate descriptions of variables related to the decisions being faced, without demonstrating that some relationship exists between variables. For the purpose of present study a related sample of stores were selected on the basis of convenience. Universe: Lucknow Sample Size: 100 Respondents. Sampling technique: Simple Random Sampling Data Collection Tool: structured questionnaire Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The data has been collected directly from respondent with the help of structured questionnaires. Secondary Source: The secondary data was collected from internet and references from Library and various journals on retail industry.

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SECONDARY DATA:Secondary data means data that are already available i.e., they refer to the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. Secondary data may either be published data or unpublished data. Usually published data are available in (a) Various publication of central, state is local governments, (b) Technical and trade journals (d) Books, magazines, and newspaper. (e) Reports and publications of various associations connected with business and industry, bank stock exchange 3-ANALYZE AND INTERPRET THE INFORMATION: The next step in the marketing research process is to exact findings from the collected data 4-PRESENT THE FINDINGS AND CONCLUSIONS: As the last step the findings and conclusions of whole research are presented.

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. DATA ANALYSIS AND INTERPRETATION

Marutis Survey:According to dealers Maruti cars are sold mostly on EMI basis. 50 -75% customers purchase cars on installment basis. Hyundais Survey:As per Hyundai dealers cars are sold on both EMI as well as upfront payment and around 50% of Hyundai cars are sold on EMI basis.

Purchase on EMI basis

7 6 No. of dealers 5 4 3 2 1 0 1 0 -25% 1 25-50% 50-75% 1 75-100% 7

Percentage of customers

fig.3 Out of 10 dealers 7 dealers replied that 50-75% of their total sales are on installment basis.

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Bank tie-ups

Marutis Survey:For EMI basis Maruti dealers are tied up with banks like ICICI, HDFC, SBI, and many others banks but they dont offer any extra discount to customers who purchase cars on cash basis Hyundais Survey:Hyundai dealers are also tied up with ICICI, HDFC, SBI, and many other major banks for EMI purchase and also dont offer any discount to customers who purchase on cash payment.

Effect of Tata Nanos entry

Marutis Survey:Dealers dont think that Tata Nanos entry in market will effect sale of their cars because they think that customers not only look for car price while buying car but look out for many other factors also. Hyundais Survey:According to dealers customer look for Quality, Standard and performance which is lacking in Tata Nano.

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Recession effect

Marutis Survey:Because of recession cars sales were reduced by 10-20%. But now people have started buying cars. Hyundais Survey:Most of the dealers replied that recession didnt affected them at all, but few dealers replied that there was marginal decline in Cars sales.

Spending huge amount on various marketing strategies during recession

Marutis Survey:Dealers think that if they dont spend on various strategies then customer will be unaware of new launches and sales will get affected.

Hyundais Survey:Hyundai dealers think that this is right time to attract maximum customers as rate of interest on car loans have been reduced

Promotion through sponsoring Reality Shows

Marutis Survey:57

Dealers think that such type of marketing strategies helps to attract customers attention towards their cars and thus it tries to create awareness amongst customers Hyundais Survey:Dealers think that because of such strategies many customers gets aware about their products and generate enquiries.

Views of dealers on Promotion through sponsoring reality show

7 6 No of dealers 5 4 3 2 1 0 yes no 3 7

fig 4

It was found out that most of the dealers i.e. 7 dealers replied positively that sponsoring reality shows and giving car to winners helps in promoting car whereas 3 dealers were not agreed to this.

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Reason for loyalty

Marutis Survey:Dealers think that customers are loyal to Maruti is because of its service, Quality, range of cars and Brand Name Hyundais Survey:According to them because of its offerings of variety of cars in all segment and its quality customers are loyal to Hyundai.

Believe in Customer Satisfaction and After Sales Service?

Both Maruti and Hyundai dealers believe 100% in Customer satisfaction and after sales service because they think that if customer is fully satisfied with its service then only he will return to same company for purchase otherwise he will shift to another car companies product. And better sales service will create good image in mind of customers.

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Conduct Marketing Research activity Some dealers replied that they conduct research activity for knowing which marketing strategy had attracted maximum number of customers, so that they can try to promote more through that strategy. Otherwise they dont conduct research activity. It is normally conducted at companies level and not at dealers level. Festive season boost

Increase in sales during Festive Season

4 No. of Dealers 3.5 3 2.5 2 1.5 1 0.5 0 1 0-20% 20-40% 40-60% 60-80%

4 3 2

Increase in Sales %

fig 5 Marutis Survey:According to dealers car sales increases by 40-50% during festive season like Diwali. Hyundais Survey:Hyundai dealers also replied that there is almost increase of 30-40% of cars during festive season.

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Company support to Dealers Both companies dealers replied that company makes selling of car easy by doing promotion through various ways. Company also motivates employees to sale more cars by providing incentives, and special schemes are introduced for dealers. Company gives them training so that they can easily communicate with customers and can solve their doubts.

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Customers survey

Users

70 63.75 60 Percentage users

50

40

36.25

30

20

10

0 Maruti Company Hyundai

fig 6

Users Below graph shows us that 63.75 % are Maruti users i.e 51 users out of 80 where as remaining 29 users i.e 36.25% are Hyundai customers .

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Most preferred cars

Car Users
16 14 12 10 8 16 13 7 9 6 3 Santro i10 Getz i20 Alto Swift Cars 5 13 8

N u s f . o r e

6 4 2 0

Ritz

Zen

Others

fig 7

After the survey it was found that Santro from Hyundai and Swift from Maruti from the various range available are the most preferred cars amongst the customers. Also Zen is more in demand.

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Loyal towards brand

Reasons for Using Maruti & Hyundai Car

40 35 30 Percentage 25 20 15 10 5 0 Brand Quality Price Criterias Range of Cars 13.75 15 8.75 26.25

36.25

Complete Package

fig.8

It is found that customers stay loyal to Maruti and Hyundai rather than other brand. They have faith in this brands due to their goodwill, good service, complete package and reasonable prices

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Rating to car performance

Customer's Rating to Car Performance

45 40 35 Percentage 30 25 20 15 10 5 0 Excellent Very Good Good Poor 17.5 7.5 43.75 31.25

fig.9

It was found that most of the customers were satisfied with the performance of the cars whereas very few found it as not up to their mark.

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Customers expectation

Expectations Met

90 80 70 Percentage 60 50 40 30 20 10 0 Yes No 14 86

fig 10

Below graph clearly states that 86 percent customers expectations were met through these brands where as few were unsatisfied..

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Criterias in buyers mind while purchasing

Criterias in Buyers Mind

30 25 Percentage 20 15 10 5 0 Looks Perform ance Comfort Criterias Milage All of Them 17.5 28.75 15 27.5 11.25

fig 11

It was found that while purchasing the car customers look for the complete car of their choice which gives them good performance, looks, mileage and also it should be reasonable in price.

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Pricing

Reasonable Pricing

80 70 60 Percentage 50 40 30 20 10 0 Yes No 22.5 77.5

fig 12

Most customers found that prices of these cars are affordable for their pockets whereas few customers found that price is little higher.

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Preference of customers Preference Of Customers

80 Percentage 60 40 20 0 Petrol Diesel L.P.G 62.5 26.25 11.25

fig. 13 Maximum customers still prefer to buy petrol version cars rather than diesel or LPG version. Even though LPG and diesel versions are economical in usage.

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Strategies used to attract customers Strategies through which Customers Attracted

50 45 40 35 30 25 20 15 10 5 0

Percentage

47.5 21.25 6.25 T.V Ads 11.25 Word of Mouth Publicity

13.75 Others

Launch Of New spapers Car

fig.14 Most of the customers prefer to buy after seeing some one elses experience. Thus word of mouth publicity acts as the marketing strategy for company whereas others are attracted to T.V ads, brand ambassadors, etc .

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Dealers Service About 37.5 percent customers were satisfied with service provided by the dealers. Some were not satisfied as they faced problems like delay in delivering the cars,etc

Dealers Service

40 35 30 Percentage 25 20 15 10 5 0 Exceelent Very Good Good Poor 7.5 23.75 37.5 31.25

fig.15 Expectations from dealers

When asked to customers about their expectations from dealers they replied that they need delivery on time , good service, giving detailed information about he car before purchasing, good after sales service, etc.

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Findings

It was found that dealers agree that Marketing Strategies helps to increase sale of product.

Most of the customers are attracted through media publicity and mouth publicity.

Swift from Maruti and i10, i20, and Santro from Hyundai are most demanded cars by customers.

Customer prefers Petrol Version cars rather than Diesel or L.P.G. version.

Most of the Customers were found satisfied with cars performance.

Around 50-75% of customers purchase cars on installment basis.

From survey, it was found that around 64% were Maruti users.

Pricing of cars was found reasonable by most of the customers.

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Customers were satisfied with dealers service.

Suggestions and Recommendations

To Dealers

As dealers directly interact with customers, they should maintain proper Customer Relationship Strategy.

They should differ service benefits and offerings according to the various customers segments. Which may include classification on the basis of income group Age group

Dealers should help customers in taking right decision for buying car and should give complete information about car before customer purchase car.

The customers purchasing car on installment basis, should also be provided with additional accessories as there is in case of cash purchase.

Dealers should provide good after sales service and should maintain good relations with customers so that reference can be get and goodwill is created. 73

To Company

Maruti should more frequently come with mid-size models like sx4 and swift as this sedan model is doing very good in market.

Maruti and Hyundai should come up with diesel model of mid-size cars as market survey says that the use of diesel cars will increase by 50% by 2011.

Hyundai should try to increase their number of dealers and service stations so that customers can get better service.

Both companies should try to build trust in customers as competition is increasing day by day.

Company should try to give some good schemes and offers and discounts for old and new customers.

Maruti should try to expand its range of cars from small car and hatchbacks to more mid-size cars like sx4 and swift mid size version.

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Conclusion

Maruti suzuki is good in its marketing strategy and shows good results. And as Maruti has its vast network of dealers and service centers they are able to provide good after sales services and are able to maintain good relationship with customers which is their strongest point. Maruti is also benefited with its goodwill and Brand name which is already there in market. So Maruti can use these as an opportunity to bring new and innovative car models in market and try to attract more and more customers. It can be seen that Maruti is trying to attract customers from all segments by launching cars like sx4, Swift, Ritz but their main preference is A segment cars only

Hyundai strategies of endorsing their products with celebrities has got a very good response but Hyundai should advertise better to create a good picture of its products by transferring the key good things about its cars. Hyundai has a good tract record of having successful diesel mid size cars in its portfolio and it should encash the same opportunity to launch the diesel versions of small car before Maruti too have competitive advantage. And Hyundai should also try to increase their service centers so that customers can find it convenient.

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Bibliography Books Marketing Kotler, P. (Year). Marketing Management. New Delhi: Publisher. Marketing Management Sharma Arun Magazines Auto Drive Indian Auto Over Drive

Websites www.marutisuzuki.com www.hyundai.com www.google.com www.autoindia.com www.overdrive.com www.wikipedia.com www.netmba.com

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Annexure
Name Address Q.1) Which companies car you are using now Maruti / Hyundai? a) Maruti b) Hyundai Q.2) Which car you are using? a) Santro, b) i10, c) Getz, d) i20, e) Alto, f) Swift, g) Ritz, h) Zen, I) other Q.3) Why you choose Maruti/ Hyundai car, and not others company car? a) Brand, b) Quality, c) Price, d) Range of cars, e) Complete package Q.4) How did you find the cars performance? a) Excellent, 77

b) Good, c) Average, d) Poor Q.5) Has it met your expectations? a) yes, b) No. Q.6) What was the main criteria in your mind while purchasing car? a) looks, b) performance, c) comfort, d) milage, e) all of them Q.7) If you have used Maruti/ Hyundai car before also, what reasons has forced you to buy Maruti/ Hyundai again? a) Brand, b) Quality, c) Price, d) Range of cars, e) all of them Q.8) Do you think prices are reasonable? a) Yes, b) No

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Q.9) Which version would you like to purchase? A) Petrol, B) Diesel, C) L.P.G Q.10) Which Marketing strategy have attracted you to buy car? (A)T.V ads, (B) Launch of car, (C) Newspapers

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