A Research Report On A STUDY OF ETHICAL PRACTICES IN MARKETING STRATEGIES OF AUTOMOBILE INDUSTRY By Adnan Razi Under the guidance of Ila

Pandey (assist.proff.) Gautam Buddha Technical University In the partial fulfillment of the requirement for the award of The degree of Master of Business Administration (MBA) Through VIDHYA BHAVAN COLLEGE FOR ENGENEERING TECHNOLOGY Year (2011-12)
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DECLARATION

I hereby declare that winter research report on A STUDY OF ETHICAL PRACTICES IN MARKETING STRATEGIES OF AUTO MOBILE INDUSTRY

Kanpur (up.) is a factual report of my own research work undertaken towards partial fulfillment of the degree of management.

The facts and figures presented here is correct and true to best of knowledge & belief

Signature

ACKNOWLEDGEMENT

I would be thankful to my guide Miss. Ila Pandey (Assist. Proff.) that she helped me a lot in completing the winter research A STUDY OF ETHICAL PRACTICES IN MARKETING STRATEGIES OF AUTO MOBILE INDUSTRY Without her great Guidance I would not be able to complete my winter research report.

(Adnan Razi) ROLL NO.-1041870003

TABLE OF CONTENT Chapter 1) Introduction-5

1.1 Executive Summary6 1.2 Meaning/Definition..8 1.3 Importance of study..27 1.4 Research Methodology.28 1.5 Scope of study29 1.6 Research methodology.30 1.7 Methods of data collection31 1.8 Limitation.34 1.9 Summary35

Chapter 2) Industry Profile-..36

2.1. Introduction of Industry38 2.2. Historical development..42 2.3. Product information 44 2.4. Financial position of Industry.\......................................................................54

Chapter 3) Data analysis-..56

3.1. Data presentation & Analysis...58 3.2. Conclusion.68

Chapter 4)

4.1. Suggestion/Recommendation70 4.2. Bibliographies ..72 4.3. Appendix/Annexure74 4.4. Limitations81

CHAPTER -1

Executive Summary
The research report is hard intends to reflect some of the basic covered under the A STUDY OF ETHICAL PRACTICES IN MARKETING STRATEGIES OF AUTO MOBILE INDUSTRY. Ethical practices are seen as an individuals own personal attitude and a belief concerning what is right or wrong, good or bad. It is important to note that ethics reside within individuals and that organization doesnt have ethics. People have ethics consequently, its definition and understanding varies from person to person. These are not absolute, but are relative. Ethical behaviors are in the eye of beholder. What is right or wrong is a personal individual matter, but is still influenced by socially accepted norms. The overall objective of the research is to consider the impact of the ethical issues, people in country dont own a four wheeler and all the major auto companies are trying to increase their sales by several moves as well as with the help of adopting the ethical practices. Like TATA has launch NANO the peoples car and now TATA motors is also planning to come out with an electric car as well as hybrid car and ethical issue related with the tata nano Singoor plant. , moreover in two wheeler segment many companies like Mahindra and Mahindra grow even more than expectations. From the Technical Analysis of both companies we come to know that the share price of Maruti will move in the band of Rs.1275 to Rs.1425 and that of TATA Motors will move in the range of Rs. 430 to Rs. 490 if certain correction made in the market. We have also come to know that every company posses its own beneficial way to promote the product by ethical issues. The total aspects have been formulated and presented on the basis of ideas and information gathered by me during a shorter span of research training i.e. an important portion of the MBA

curriculum leading to an opportunity for the participant to have a practical exposure of the contents under the topic beyond what has already been studies during the class-room interaction. This study fulfills the objective of the Ethical Practices used in automobile industry to understand various aspects of modern marketing strategic techniques. The objective of the study of Ethical issues in automobile Industry is to understand the importance and impact of these practices in any Industry and how it is important for this Industry in the growth. In this project I have studied the techniques of automobile company towards the promotion of the product and give conclusion and recommendations. I am grateful to all those who have helped me directly and indirectly in preparing this report. I firmly believe that there is always scope for improvement accordingly I shall look forward to receive suggestion.(Which shall be thankfully acknowledged) for further enriching the quality of this research report.

Meaning & definition

ETHICS
Ethics refers to a system of moral principles a sense of right and wrong, and goodness and badness of actions and the motives and consequences of these actions. As applied to business firms, ethics is the study of good and evils, right and wrong and just and unjust actions of businessmen.

Ethics is a body of principles or standards of human conduct that govern the behavior of individuals and groups. Ethics arise not simply from man's creation but from human nature itself making it a natural body of laws from which man's laws follow.

Ethics is a branch of philosophy and is considered a normative science because it is concerned with the norms of human conduct, as distinguished from formal sciences such as mathematics and logic, physical sciences such as chemistry and physics, and empirical sciences such as economics and psychology.

Ethics is seen as an individuals own personal attitude and a belief concerning what is right or wrong, good or bad. It is important to note that ethics reside within individuals and that organization doesnt have ethics. People have ethics consequently, its definition and understanding varies from person to person. These are not absolute, but are relative. Ethical behaviors are in the eye of beholder. What is right or wrong is a personal individual matter, but is still influenced by socially accepted norms. 8

Right, and proper and fair are the ethical terms. It expresses a judgment about behavior towards people they felt to be just. Ethics are useful tools for sorting out the good and bad components within complex human interactions.

Business ethics does not differ from generally accepted norms of good or bad practices. If dishonesty is considers to be unethical and immoral in the society, then any business man who is dishonest his or her employees, customers shareholders, or competitors is unethical and immoral person.

Formation of ethics

An individuals ethics are formulated through the operation of forces in the individuals environment. These are discussed in the succeeding paragraphs.

Family influences The formation of ethics begins when the individual is a child. Thus the family environment has a significant influence in determining what the child learns about good and bad, right and wrong.

Peer influences

As the child develops contacts outside the home through home, school, play and work, peers exert considerable influence on the individuals ethical beliefs.

Experiences As a person matures and develops as a human being, he or she will be exposed to many critical experiences that will be affect his or her ethical standards.

Values and morals Ones ethical standards are also greatly influenced by values and morals. People who place high value on money and material possessions may nothave strong ethical standard regarding behaviors that facilitate the accumulation of that wealth.

Situation Factors People often change their ethics in response to unknown situational factors. An employee, who is threatened with loosing a job that has been held for years, may commit unethical acts in order to save the job.

Religion One of the oldest sources of ethical inspiration is religion. More than 1,00,000 different religion exist across the globe .Despite doctrinal differences, the major religion coverage on the believe that ethics is an expression of divine will that reveals the nature of right and wrong in business and others walks of life.

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 The legal system Laws are rules of conduct, approves by legislatures, that guide human behavior in any society .They codify ethical expectations and change as new evils emerge. But law cannot cover all ethical expectation of society. Whenever ethics the law codifies, it is binding on businesses. The society expects businesses to abide by the law. Obeying the law is presumed to be ethical behavior .Law breaking in business is common. Taxes are evaded, hundred of employees die because of occupational disease, many perish because of industrial accidents, and million others receive disabling injuries on the job. The blame for these death and injuries had to be shared by employees and employers who fail to adhere to occupational health and safety laws. Consumer suffer because of poor quality and high priced products by the supplied by the businessmen .Businesses that degrade the environment by disregarding environment protection laws cause misery to the society.

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BUSINESS ETHICS
According to an old joke business ethics is a contradiction in terms. For some this is only humor. For others there is a serious question: As business is by nature unethical, how can there be such a subject as business ethics?

Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. In the increasingly consciencefocused marketplaces of the 21st century, the demand for more ethical business processes and actions ~ Ethicism, is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws.

Definition of Business Ethics: Business Ethics is a specialized study of moral right and wrong. It concentrates on moral standards as they apply particularly to business policies, institutions, and behavior.

Ethical Issues Relate to all Functional Areas in a business Accounting Finance Management Marketing

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The major issues in business ethics can be classified into four areas: The relationship between business and consumers. The relationship between employers and employees. The nature and value of special forms of business organizationmost notably, that of the corporation. The nature and value of financial markets.

IMPORTANCE OF BUSINESS ETHICS

Ethics is important to business in general and HR in particular, for several reasons as stated below:

Ethics corresponds to basic human needs. It is mens basic nature that he desires to be ethical; not only in his private life but also in his business affairs where, being a manager he knows that his decisions may affect the life of thousands of employees. Moreover, most people want to be the part of organization which they can respect and be proud of, because they perceive its purpose activities to be honest and beneficial to society. Most HR managers would like to respond to this need of their employees and, they (managers) themselves feel an equal need to be genuinely proud of the company they are directing. These bases ethical needs compel the organizations to be ethical oriented.

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Values create credibility with the public. A company perceived by the public to be ethical and socially responsive will be honored ands respected even by those who have no intimate knowledge of its actual working. There will be an instinctive prejudice in favor of its products, since people believe that the company offers value for money. Its public issues will attract an immediate response. Value give the management credibility with its employees. Values are supposed to be a common language to bring the leadership and its people together Organizational ethics, when perceived by employee as genuine, create common goals, values, and language. The HR management can have credibility with its employees simply because it has credibility with the people. Neither a sound business strategy, nor a generous compensation policy and fringe benefits can win employee credibility, but perceived moral and social uprightness can.

Values help better decision making. Another point of great importance is that an ethical attitude helps the management make better decisions, that is ,decision which are in the interest of the public, their employees, and the companys own long-term good, even though the decision making is slower. This is so because respect for ethics will force a management to take various aspect- economic, social and ethical-in making decision.

Ethics and profit go together. A company which is inspired by ethical conduct is also profitable. Value-driven companies are most likely to be successful in long run, though in the short run, they may lose money.

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Law cant protect society, ethics can. Ethics is important because, law and lawyer cannot do everything to protect society. Technology develops faster than the government can regulate. People in an industry know the dangers in the particular technology better than the regulatory agencies. Further, the government cannot always regulate all activities which are harmful to the society. Where law fails, ethics can succeed. An ethically-oriented management takes measures to prevent pollution and protects workers health even before being mended by law .An ethically sound HR manager, who can reach out to agitated employees, will quell a trouble more effectively than the police.

FOUR VIEWS OF ETHICS

1. UTILITARIAN VIEW of ethics says that: Ethical decisions are made solely on the basis of their outcomes or consequences. Greatest good is provided for the greatest number Encourages efficiency and productivity and is consistent with the goal of profit maximization

2. RIGHTS VIEW of ethics is concerned with respecting and protecting individual liberties and privileges such as the rights to privacy, free speech, and due process.

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 Respecting and protecting individual liberties and privileges Seeks to protect individual rights of conscience, free speech, life and safety, and due process To make ethical decisions, managers need to avoid interfering with the fundamental rights of others

3. Theory of JUSTICE VIEW is where managers impose and enforce rules fairly and impartially and do so by following all legal rules and regulations. Organizational rules are enforced fairly and impartially and follow all legal rules and regulations Protects the interests of underrepresented stakeholders and the rights of Employees

4. INTEGRATIVE SOCIAL CONTRACTS theory proposes that ethical decisions be based on existing ethical norms in industries and communities in determining what constitutes right and wrong. Acts are moral when they promote the individuals best long-term interests, which ultimately leads to the greater good Individualism is believed to lead to honesty and integrity because that works best in the long run. Ethics has come to be considered a management discipline, especially since the birth of the social responsibility movement in the 1960s. In that decade, social awareness movements raised expectations of businesses to use their massive financial and social influence to address social problems such as poverty, crime, environmental protection, equal rights, public health and

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improving education. An increasing number of people asserted that because businesses were making a profit from using the planets resources, these businesses owed it to the planet to work to improve society.

Ethical behavior starts at the top. Before a company can expect to be viewed s ethical in the business community, ethical behavior within its own walls-to and by employees-is a must, and top management dictates the mood. Ethical behavior by the leaders of an organization will inevitably set the tone for the rest of the company-values will remain consistent. Further, a well communicated commitment to ethics sends a powerful message that ethical behavior is considered to be a business imperative.

BASIC ISSUES IN BUSINESS ETHICS

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GENERAL BUSINESS ETHICAL ISSUES: This part of business ethics overlaps with the philosophy of business, one of the aims of which is to determine the fundamental purposes of a company. If a company's main purpose is to maximize the returns to its shareholders, then it could be seen as unethical for a company to consider the interests and rights of anyone else.

Corporate social responsibility or CSR: an umbrella term under which the ethical rights and duties existing between companies and society is debated.

Issues regarding the moral rights and duties between a company and its shareholders: fiduciary responsibility, stakeholder concept v. shareholder concept.

Ethical issues concerning relations between different companies: e.g. hostile takeovers, industrial espionage.

Leadership issues: corporate governance.

Political contributions made by corporations.

Law reform, such as the ethical debate over introducing a crime of corporate manslaughter.

The misuse of corporate ethics policies as marketing instruments.

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THE MAJOR PRINCIPLES OF BUSINESS ETHICS:

No discrimination should be done on the basis of caste ,color , and religion, The polices should be fair and transparent Proper provision of safety should be provided by the company to he employees There should be proper honesty, loyalty, and integrity in the employees. The companys resources should not be utilized by the employees for their personal usage Company should provide better environment condition Information about employees personal lives, health, and work evaluations should be confidential Regular measurement of employee satisfaction should by company. To neither give nor take any illegal payment, remuneration, gift, donation, or comparable, benefits to obtain business or favors. To comply with all regulations regarding preservation of the environment. Employee should report to management any actual or possible violation of code or an event that could affect the business or reputation of the employees company.

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THEORETICAL ISSUES IN BUSINESS ETHICS

CONFLICTING INTERESTS

Business ethics can be examined from various perspectives, including the perspective of the employee, the commercial enterprise, and society as a whole. Very often, situations arise in which there is conflict between one or more of the parties, such that serving the interest of one party is a detriment to the other(s). For example, a particular outcome might be good for the employee, whereas, it would be bad for the company, society, or vice versa. Some ethicists (e.g., Henry Sidgwick) see the principal role of ethics as the harmonization and reconciliation of conflicting interests.

ETHICAL ISSUES AND APPROACHES

Philosophers and others disagree about the purpose of a business ethic in society. For example, some suggest that the principal purpose of a business is to maximize returns to its owners, or in the case of a publicly-traded concern, its shareholders. Thus, under this view, only those activities that increase profitability and shareholder value should be encouraged. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. However, some point out that self interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly in fines, loss of licensure, or company reputation. The economist Milton Friedman was a leading proponent of this view.

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Other theorists contend that a business has moral duties that extend well beyond serving the interests of its owners or stockholders, and that these duties consist of more than simply obeying the law. They believe a business has moral responsibilities to so-called stakeholders, people who have an interest in the conduct of the business, which might include employees, customers, vendors, the local community, or even society as a whole. They would say that stakeholders have certain rights with regard to how the business operates, and some would suggest that this includes even rights of governance.

Some theorists have adapted social contract theory to business, whereby companies become quasi-democratic associations, and employees and other stakeholders are given voice over a company's operations. This approach has become especially popular subsequent to the revival of contract theory in political philosophy, which is largely due to John Rawls' A Theory of Justice, and the advent of the consensus-oriented approach to solving business problems, an aspect of the "quality movement" that emerged in the 1980s. Professors Thomas Donaldson and Thomas Dunfee proposed a version of contract theory for business, which they call Integrative Social Contracts Theory. They posit that conflicting interests are best resolved by formulating a "fair agreement" between the parties, using a combination of

i) Macro-principles that all rational people would agree upon as universal principles, and, ii) Micro-principles formulated by actual agreements among the interested parties.

Critics say the proponents of contract theories miss a central point, namely, that a business is someone's property and not a mini-state or a means of distributing social justice.

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Ethical issues can arise when companies must comply with multiple and sometimes conflicting legal or cultural standards, as in the case of multinational companies that operate in 20 countries with varying practices. The question arises, for example, ought a company to obey the laws of its home country, or should it follow the less stringent laws of the developing country in which it does business? To illustrate, United States law forbids companies from paying bribes either domestically or overseas; however, in other parts of the world, bribery is a customary, accepted way of doing business. Similar problems can occur with regard to child labor, employee safety, work hours, wages, discrimination, and environmental protection laws. It is sometimes claimed that a Gresham's law of ethics applies in which bad ethical practices drive out good ethical practices. It is claimed that in a competitive business environment, those companies that survive are the ones that recognize that their only role is to maximize profits. On this view, the competitive system fosters a downward ethical spiral.

10 Benefits of Managing Ethics in the Workplace

The following list describes various types of benefits from managing ethics in the workplace:

1. Attention to business ethics has substantially improved society. A matter of decades ago, children in our country worked 16-hour days. Workers limbs were torn off and disabled workers were condemned to poverty and often to starvation. Trusts controlled some markets to the extent that prices were fixed and small businesses choked out. Price fixing crippled normal market forces. Employees were terminated based on personalities. Influence was applied

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through intimidation and harassment. Then society reacted and demanded that businesses place high value on fairness and equal rights. Anti-trust laws were instituted. Government agencies were established. Unions were organized. Laws and regulations were established.

2. Ethics programs help maintain a moral course in turbulent times. Attention to business ethics is critical during times of fundamental change times much like those faced now by businesses, both nonprofit and for-profit. During times of change, there is often no clear moral compass to guide leaders through complex conflicts about what is right or wrong. Continuing attention to ethics in the workplace sensitizes leaders and staff to how they want to act -consistently.

3. Ethics programs cultivate strong teamwork and productivity. Ethics programs align employee behaviors with those top priority ethical values preferred by leaders of the organization. Usually, an organization finds surprising disparity between its preferred values and the values actually reflected by behaviors in the workplace. Ongoing attention and dialogue regarding values in the workplace builds openness, integrity and community -- critical ingredients of strong teams in the workplace. Employees feel strong alignment between their values and those of the organization. They react with strong motivation and performance.

4. Ethics programs support employee growth and meaning. Attention to ethics in the workplace helps employees face reality, both good and bad -- in the organization and themselves. Employees feel full confidence they can admit and deal with whatever

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comes their way. Their most striking finding: the more emotionally healthy executives, as measured on a battery of tests, the more likely they were to score high on ethics tests.

5. Ethics programs are an insurance policy -- they help ensure that policies are legal. There is an increasing number of lawsuits in regard to personnel matters and to effects of an organizations services or products on stakeholders. As mentioned earlier in this document, ethical principles are often state-of-the-art legal matters. These principles are often applied to current, major ethical issues to become legislation. Attention to ethics ensures highly ethical policies and procedures in the workplace. Its far better to incur the cost of mechanisms to ensure ethical practices now than to incur costs of litigation later. A major intent of well-designed personnel policies is to ensure ethical treatment of employees, e.g., in matters of hiring, evaluating, disciplining, firing, etc. An employer can be subject to suit for breach of contract for failure to comply with any promise it made, so the gap between stated corporate culture and actual practice has significant legal, as well as ethical implications.

6. Ethics programs help avoid criminal acts of omission and can lower fines. Ethics programs tend to detect ethical issues and violations early on so they can be reported or addressed. In some cases, when an organization is aware of an actual or potential violation and does not report it to the appropriate authorities, this can be considered a criminal act, e.g., in business dealings with certain government agencies, such as the Defense Department. The recent Federal Sentencing Guidelines specify major penalties for various types of major ethics violations. However, the guidelines potentially lower fines if an organization has clearly made an effort to operate ethically.

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7. Ethics programs help manage values associated with quality management, strategic planning and diversity management -- this benefit needs far more attention. Ethics programs identify preferred values and ensuring organizational behaviors are aligned with those values. This effort includes recording the values, developing policies and procedures to align behaviors with preferred values, and then training all personnel about the policies and procedures. This overall effort is very useful for several other programs in the workplace that require behaviors to be aligned with values, including quality management, strategic planning and diversity management. Total Quality Management includes high priority on certain operating values, e.g., trust among stakeholders, performance, reliability, measurement, and feedback. Eastman and Polaroid use ethics tools in their quality programs to ensure integrity in their relationships with stakeholders. Ethics management techniques are highly useful for managing strategic values, e.g., expand market share, reduce costs, etc. Ethics management programs are also useful in managing diversity. Diversity is much more than the color of peoples skin -- its acknowledging different values and perspectives. Diversity programs require recognizing and applying diverse values and perspectives -- these activities are the basis of a sound ethics management program.

8. Ethics programs promote a strong public image. Attention to ethics is also strong public relations -- admittedly, managing ethics should not be done primarily for reasons of public relations. But, frankly, the fact that an organization regularly gives attention to its ethics can portray a strong positive to the public. People see those organizations as valuing people more than profit, as striving to operate with the utmost of integrity and honor. Aligning behavior with values is critical to effective marketing and public relations programs.

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Ethical values, consistently applied, are the cornerstones in building a commercially successful and socially responsible business.

9. Overall benefits of ethics programs: managing ethical values in the workplace legitimizes managerial actions, strengthens the coherence and balance of the organizations culture, improves trust in relationships between individuals and groups, supports greater consistency in standards and qualities of products, and cultivates greater sensitivity to the impact of the enterprises values and messages. 10. Last - and most -- formal attention to ethics in the workplace is the right thing to do.

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IMPORTANCE OF STUDY

This study explores the good and bad ethical practices that have been used at the time of making marketing strategies.

This research is helpful in promoting good ethical issues and neglecting bad ethical issues at the time of designing and implementing marketing strategies.

Making good marketing strategy is an important task and for that a value based system is helpful in developing good strategies.

A good value based system is dependent upon the good ethical practices and this research report is helpful in that.

Marking strategies are most important strategies because the product or services are only promoted and sale by the help of it for that the importance of ethical practices have been increased and this study is helpful for that.

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RESEARCH OBJECTIVE
Primary objective: To find out the major ethical issues related with marketing strategies in automobile industry. Secondary Objectives To find out the impact of these ethical issues on the marketing strategies in automobile industry.

Comparative analysis TATA Motors and Maruti Suzuki and Mahindra related with ethical issues that applied in these organizations.

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SCOPE OF STUDY

This study explores the impact of ethical practices used by the automobile industry. How employees and consumers are affected by the ethical practices of the automobile organizations.

This study explores that how good or bad ethical practices impact the marketing strategy of the organization.

This study also explores that how the good ethical practices motivate the employees to work effectively for the organization.

This research shows that how the good value based system improves the performance of the organization.

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RESEARCH METHODOLOGY

RESEARCH DESIGN

DESCIPTIVE

RESEARCH APPROACH

SURVEY

CONTACT METHOD

PERSONAL INTERVIEW

SAMPLE SIZE

100

SAMPLE UNIT

BUSINESS MAN, SERVICE MAN, HOUSE WIFES, STUDENTS

SAMPLING CRITERIA

RANDOM SAMPLING

RESEARCH INSTRUMENTS TYPE OF DATA COLLECTED

QUESTIONNAIRE (SCHEDULE) PRIMARY DATA SECONDARY DATA

AREA OF RESEARCH

KANPUR

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METHODS OF DATA COLLECTION

PRIMARY SOURCES

Questionnaire.

SECONDARY SOURCES

Newspapers. Magazines. Internet sites.

DATA COLLECTION

PRIMARY DATA

The primary data are those data, which are collected afresh and for the first time and happen to be original in character. The primary data to be collected for the study areBy Structured Questionnaire.

SECONDARY DATA

Secondary data are those data which have already been collected by someone else and which already had been passed though the statically process. The secondary data to be collected for the study are-

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Publication Of The Company Periodical Of The Company By Internet Websites

RESEARCH INSTRUMENT

Structured Questionnaire: A Questionnaire consists of a number of questions printed or typed and a definite order on forms. It is the set of questions presented to the retailers for answers. When the questions have only two alternatives or of multiple choices, then it is known as closed-end questionnaire, which is hence used the given study.

RESEARCH INSTRUMENTS USED

For our research purpose instruments used were extensive literature survey and Internet surfing. The idea was to gain enough insight into the automobile phenomenon and analyzing the characteristics of the population under study.

We adopted sample survey because it was not possible to examine every item in the population. It was possible to capture sufficiently acquit result by studying only a portion of the total population which is the true representative of the population under study. The phase one of study corresponded to the collection of data from automobile distributors of our competitors who are in better personal contact with their customer so as to analyze the demand of the customers, their working environment and satisfaction level with their respected companies.

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Sampling techniques used and the sample size

Simple random sampling technique is used to collect data from the population. This technique gave each item an equal probability of being selected.

Sample size ---100

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LIMITATION
In every project/study undertaken limitations arises and are inevitable. Similarly, in this project several limitations appear, which would have been eliminated but for constraints of time, accessibility to information it has not been possible.

The limitation of the report is that the respondents always try to give positive answer. Thats why the 100% authentication cannot be achieved

The report is based on primary and secondary data some time and there is always error held in collecting data.

Respondent some time gives negative feedback because of that is become difficult to analysis data.

This research has been in Kanpur region only. Because of the random sampling chances of biasness have been occurred. In fact, this research report involves human processing and analysis. Therefore, there are chances of human error.

This project report is based on the information given by the head or Unit Managers of the centers. The information is also collected through some magazines, newspapers and e-mails. Some respondents were not interested in giving answers as they were appearing to be busy.

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SUMMARY
Title of Research : A Study of Ethical Practices Used In

The Marketing Strategies of Automobile Industry

Name of Industry on which Research is conducted : Automobile

Research Area

: Kanpur

Research Design

: Descriptive

Data Collection

: Primary & Secondary

Method of Data Collection

: Personal interview Collected Questionnaire (Schedule) Reports and magazine.

Sample Size

: 100

Research under Guidance

: Ila Pandey (Assist. Proff)

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CHAPTER-2

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INTRODUCTION OF INDUSTRY
The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.7 million units in 2010.According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 40% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%.Chennai, is also referred to as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, 37

Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat.Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

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OVERVIEW
The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year. The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three-wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people.

The supply chain is similar to the supply chain of the automotive industry in Europe and America.

Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged.

With a high cost of developing production facilities, limited accessibility to new technology, and increasing competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major

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players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%.

The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India's increasing per capita disposable income which is expected to rise by 106% by 2015[18] and growth in exports is playing a major role in the rise and competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26%[18] of the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler market.

Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy.

40

The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India.

Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favorable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labor and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.

41

HISTORICAL DEVELOPMENT
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.

Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors.

Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. 42

Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and have since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor.

SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international, in India.

43

PRODUCT INFORMATION

The products which have been produced by the automobile industry are as follows.

Two wheelers vehicles Three wheelers vehicles Four wheelers vehicles Truckers And Heavy vehicles

These products have been segmented according to the needs and the wants of the consumers. And in present era these product have been changed into an industry for an example two wheelers industry and four wheelers industry. Segmentation has played very important role in auto mobile industry because different consumers have different needs and different wants according to their need and wants product has been designed and developed.

TWO WHEELERS

Evolution of Two-wheeler Industry

In

India

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two44

wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilization of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted

45

in

higher level

of

competition.

Growth

Perspective

The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's gaining importance during this period is exhibited by the Figures 1, 2 and 3 depicting total sales, share and annual growth during the period 1993-94 through 2003-04.

46

47

National Council of Applied Economic Research (NCAER) had forecast two-wheeler demand during the period 2002-03 through 2011-12. The forecasts had been made using econometric technique along with inputs obtained from a primary survey conducted at 14 prime cities in the country. Estimations were based on Panel Regression, which takes into account both time series and cross section variation in data. A panel data of 16 major states over a period of 5 years ending 1999 was used for the estimation of parameters. The models considered a large number of macro-economic, demographic and socio-economic variables to arrive at the best estimations for different two-wheeler segments. The projections have been made at all India and regional levels. Different scenarios have been presented based on different assumptions regarding the demand drivers of the two-wheeler industry. The most likely scenario assumed annual growth rate of Gross Domestic Product (GDP) to be 5.5 per cent during 2002-03 and was anticipated to increase gradually to 6.5 per cent during 2011-12. The all-India and region-wise projected growth trends for the motorcycles and scooters are presented in Table 1. The demand for mopeds is not presented in this analysis due to its already shrinking status compared to' motorcycles and scooters.

It is important to remember that the above-mentioned forecast presents a long-term growth for a period of 10 years. The high growth rate in motorcycle segment at present will stabilise after a certain point beyond which a condition of equilibrium will set the growth path. Another important thing to keep in mind while interpreting these growth rates is that the forecast could consider the trend till 1999 and the model could not capture the recent developments that have taken place in last few years. However, this will not alter the regional distribution to a significant extent.

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Table 1 suggests two important dimensions for the two-wheeler industry. The region-wise numbers of motorcycle and scooter suggest the future market for these segments. At the all India level, the demand for motorcycles will be almost 10 times of that of the scooters. The same in the western region will be almost 20 times. It is also evident from the table that motorcycle will find its major market in the western region of the country, which will account for more than 40 per cent of its total demand. The south and the north-central region will follow this. The demand for scooters will be the maximum in the northern region, which will account for more than 50 per cent of the demand for scooters in 2011-12.

Table 1: Demand Forecast for Motorcycles and Scooters for 2011-12

2-Wheeler Segment

Regions South West North-Central East & North-East All India 2835 4327 2624 (12.5) 602 (2.8) 883 (11.1) 99 (2.0) 10669 (14.0) 1124 (2.08)

Motorcycle (12.9) (16.8) 203 Scooter (2.6) (3.5) 219

Note: Compound Annual Rate of Growth during 2002-03 and 2011-12 is presented in parenthesis Source: Indian Automobile Industry: Optimism in the Air, Industry Insight, NCAER

49

The present economic situation of the country makes the scenario brighter for short-term demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004. Both industry and the service sectors have shown high growth during this period at the rates of 8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP growth to some extent. Taking into account all these factors along with other leading indicators including government spending, foreign investment, inflation and export growth, NCAER has projected an average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very recently, IMF has portrayed a sustained global recovery in World Economic Outlook. A significant shift has also been observed in Indian households from the lower income group to the middle income group in recent years. The finance companies are also more aggressive in their marketing compared to previous years. Combining all these factors, one may visualize a higher growth rate in two-wheeler demand than presented in Table 1, particularly for the motorcycle segment.

There is a large untapped market in semi-urban and rural areas of the country. Any strategic planning for the two-wheeler industry needs to identify these markets with the help of available statistical techniques. Potential markets can be identified as well as prioritized using these techniques with the help of secondary data on socio-economic parameters. For the two-wheeler industry, it is also important to identify the target groups for various categories of motorcycles and scooters. With the formal introduction of secondhand car market by the reputed car manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry

50

needs to upgrade its market information system to capture the new market and to maintain its already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more focused attention. It is also imperative to initiate measures to make the presence of Indian two-wheeler industry felt in the global market. Adequate incentives for promoting exports and setting up of institutional mechanism such as Automobile Export Promotion Council would be of great help for further surge in demand for the Indian twowheeler industry.

FOUR WHEELERS VEHICLES

Suzuki was a leader in the development of four-wheeled ATVs. It sold the first model, the 1982 QuadRunner LT125, which was a recreational machine for beginners. Suzuki sold the first fourwheeled mini ATV, the LT50, from 1984 to 1987. After the LT50, Suzuki sold the first ATV with a CVT transmission, the LT80, from 1987 to 2006.

In 1985 Suzuki introduced to the industry the first high-performance four-wheel ATV, the Suzuki LT250R QuadRacer. This machine was in production for the 1985-1992 model years. During its production run it underwent three major engineering makeovers. However, the core features were retained. These were: a sophisticated long-travel suspension, a liquid-cooled twostroke motor and a fully manual five-speed transmission for 19851986 models and a six-speed transmission for the 8792 models. It was a machine exclusively designed for racing by highly skilled riders.

51

Honda responded a year later with the FourTrax TRX250Ra machine that has not been replicated until recently. It currently remains a trophy winner and competitor to big-bore ATVs. Kawasaki Heavy Industries responded with its Tecate-4 250.

In 1987, Yamaha Motor Company introduced a different type of high-performance machine, the Banshee 350, which featured a twin-cylinder liquid-cooled two-stroke motor from the RD350LC street motorcycle. Heavier and more difficult to ride in the dirt than the 250s, the Banshee became a popular machine with sand dune riders thanks to its unique power delivery. The Banshee remains popular, but 2006 is the last year it was available in the U.S. (due to EPA emissions regulations); it is still available in Canada, however.

Shortly after the introduction of the Banshee in 1987, Suzuki released the LT500R QuadRacer. This unique quad was powered by a 500 cc liquid cooled two stroke engine with a five-speed transmission. This ATV earned the nickname "Quadzilla" with its remarkable amount of speed and size. While there are claims of 100+ mph stock Quadzillas, it was officially recorded by 3&4 Wheel Action magazine as reaching a top speed of over 79 mph (127 km/h) in a high speed shootout in its 1988 June issue, making it the fastest production ATV ever produced. Suzuki discontinued the production of the LT500R in 1990 after just four years.

At the same time, development of utility ATVs was rapidly escalating. The 1986 Honda FourTrax TRX350 4x4 ushered in the era of four-wheel drive ATVs. Other manufacturers quickly followed suit, and 4x4s have remained the most popular type of ATV ever since. These machines are popular with hunters, farmers, ranchers and workers at construction sites.

52

Safety issues with three-wheel ATVs caused all ATV manufacturers to upgrade to four-wheel models in the late 1980s, and three-wheel models ended production in 1987, due to consent decrees between the major manufacturers and the Consumer Product Safety Commissionthe result of legal battles over safety issues among consumer groups, the manufacturers and CPSC. The lighter weight of the three-wheel models made them popular with some expert riders. Cornering is more challenging than with a four-wheeled machine because leaning into the turn is even more important. Operators may roll over if caution isn't used. The front end of threewheelers obviously has a single wheel, making it lighter, and flipping backwards is a potential hazard, especially when climbing hills. Rollovers may also occur when traveling down a steep incline. The consent decrees expired in 1997, allowing manufacturers to, once again, make and market three-wheel models, though there are none marketed today. Recently the CPSC has succeeded in finally banning three-wheeled ATV's with attachments to bill HR4040. Many believe this is in response to Chinese manufacturers trying to import three-wheeled ATV's. The Japanese manufacturers were also behind this legislation, as they have been held responsible for years to provide ATV Safety training and to apply special labels and safety equipment to their ATVs while Chinese manufacturers did not.

Models continue, today, to be divided into the sport and utility markets. Sport models are generally small, light, two-wheel drive vehicles that accelerate quickly, have a manual transmission and run at speeds up to approximately 80 mph (130 km/h). Utility models are generally bigger four-wheel drive vehicles with a maximum speed of up to approximately 70 mph (110 km/h). They have the ability to haul small loads on attached racks or small dump beds. They may also tow small trailers. Due to the different weights, each has advantages on different types of terrain. 53

Six-wheel models often have a small dump bed, with an extra set of wheels at the back to increase the payload capacity. They can be either four-wheel drive (back wheels driving only), or six-wheel drive.

54

FINANCIAL INFORMATION OF INDUSTRY

In last FY despite of skyrocketing oil prices (crude oil price has already up to $130 compared to $20 per barrel five years back), Indian automobile Industry was not as much affected and experts think that Indian automobile industry will continue to grow this year despite all obstacles- oil price hike, higher interest rates. However, the effect of inflation has affected every sector which is related to car manufacturing and production. The increase in the price of fuel and the steel due to inflation has led to a slower growth rate of the car industry in India. The effect of inflation has taken the rise in the price rate of the cars by 3-4% which in turn suffices the need to meet the rise in price of the raw materials to build a car. The car market and the car industry witnessed a fall of 8-9%. FDIs In India FDI up to 100 percent, has been permitted under automatic route to this sector, which has led to a turnover of USD 12 billion in the Indian auto industry and USD 3 billion in the auto parts industry. India enjoys a cost advantage with respect to casting and forging as manufacturing costs in India are 25 to 30 per cent lower than their western counterparts the Investment Commission has set a target of attracting foreign investment worth US$ 5 billion for the next seven years to increase India's share in the global auto components market from the existing 0.9 per cent to 2.5 per cent by 2015. FDI inflows in Automobile Industry 2008-09 was Rs.5,212 Cr an increase of 47.25% compare to 2007-08, while in April-May 2009 it was around Rs.497 Cr. Source- FDI Statistics Govt. of India

55

Foreign Exchange India holds the third largest stock of reserves among the emerging market economies after China and Russia. The overall approach to the management of India's foreign exchange reserves in recent years reflects the changing composition of the balance of payments and the 'liquidity risks' associated with different types of flows and other requirements. Source: rbi.org.in Taking these factors into account, India's foreign exchange reserves continued to be at a comfortable level and consistent with the rate of growth, the share of external sector in the economy and the size of risk-adjusted capital flows. Following is the table shows the trend of foreign reserves held by central bank in last FY. Reserves came down cause of recession all over the world however India still able to maintain its reserves hence a minor fall was seen compare to all other country which shows great strength in long-term for Indian Economy. Increase in Exports especially from auto industry shows an expectations of huge income from western countries and new $200 bl. target for exports by 2011 helps in increasing. 1. FCA (Foreign Currency Assets): FCAs are maintained as a multicurrency portfolio comprising major currencies, such as, US dollar, Euro, Pound sterling, Japanese yen, etc. and is valued in terms of US dollars. 2. SDR (Special Drawing Rights): Values in SDR have been indicated in parentheses. 3. Gold: Physical stock has remained unchanged at approximately 357 tonnes. 4. RTP refers to the Reserve Tranche Position in the IMF.

56

Export Society of Indian Automobile Manufacturers (SIAM), automobile sales (including passenger vehicles, commercial vehicles, two-wheelers and three-wheelers) in the overseas markets increased to 1.53 million units in 2008-09 from 1.23 million units in 2007-08. Export of passenger vehicles increased from 218,401 in 2007-08 to 335,739 units in 2008-09. There is a continuous increase in the export of automobiles since the financial year 2002-03, except for the decline in the export of commercial vehicles in the financial year 2008-09, which may be attributed to the global economic recession. Despite recession, the Indian automobile market continues to perform better than most of the other industries in the economy in coming future; more and more MNCs coming in India to setup their ventures which clearly shows the scope of expansion. Current Scenario of Automobile Industry in Economy With the latest available data Indian Automobile Industry is expected to grow at 9%-10% in near future, Two wheeler segment sales grew up by 12.8% with the modest 2.6% growth rate, under this segment the market leader Hero Honda registered growth of 12% in its domestic sales where as Bajaj Auto disappointed as sales plunging by 23%, on the other hand car sales has been grew up by a healthy 22.7% in last February and Commercial Vehicles reported slower sales. It is assumed that in coming festive season to meet demand, carmakers going to produce 70000units/month more over the average 1.3lac/month with help of 5000 new hands.

57

CHAPTER-3

58

DATA PRESENTATION AND ANALYSIS

Q1) Do you agree with that good ethical practices are necessary at the time of developing marketing strategy?
a) Highly Agree c) Not agree e) Dont know b) Agree d) Highly not agree

ethical practices are necessary at the time of developing marketing strategy

0% 0% 25% 10% Highly Agree Agree 65% Not agree Highly not agree Dont know

Thus, it is clear that 65% people feel that the that good ethical practices are necessary at the time of developing marketing strategy

59

Q2) Do you agree with that good ethical practices create impact on consumer buying behavior?
a) Highly Agree c) Not agree e) Dont know b) Agree d) Highly not agree

Imact of Consumer Buying behavior of good ethical practices

2% 1% 13% Highly Agree 25% Agree 59% Not Agree Highly Not agree Dont know

Thus it is quite obvious that 59% good ethical practices create impact on consumer buying behavior consumer

60

Q3) which types of ethical practices are important while making marketing strategies?
a) Justice practices c) Confidentiality and Privacy Practices b) Integrity practices d) Self control practices

Types of Ethical Practices Used In developing marketing strategy

11% 12% 34%

Justice practices Integrity practices Confidentiality and Privacy Practices Self control practices

43%

Thus, it is clear that 43% people agree with that ethical practices are important while making marketing strategies

61

Q4) Do you Agree with that good ethical practices create impact on the work effectiveness of employees in the organization?
a) Highly Agree c) Not agree e) Dont know b) Agree d) Highly not agree

Imact of Etical Practices on work effectiveness of employees

0% 15% 55% 20% 10% Highly Agree Agree Not agree Highly not agree Dont know

Thus, it is clear that 55% employees feel that good ethical practices create impact on the work effectiveness of employees in the organization

62

Q5) To motivate employees value based ethical system is required do u agree with this statement?
a) Highly Agree c) Not agree e) Dont know b) Agree d) Highly not agree

Requirement of motivation of employees in ethical system

4% 2% 10% Highly Agree 52% 32% Agree Not agree Highly not agree Dont know

Thus, it is clear that 52% employees feel that the motivation is valuable for ethical system.

63

Q6) To what extent did you feel that in automobile industry which company uses better ethical way to promote the product?
a) Marutti Suzuki b) Mahindra b) Tata motors d) Honda

better ethical practises used by automobile companies

11% 37% 25% Marutti Suzuki Tata motors Mahindra 27% Honda

Thus, it is clear that 37% Maruti Suzuki uses better ethical way to promote the product .

64

Q7) Do you think that ethical issues are the most important part of the marketing strategy in automobile industry?
a) Yes c) Dont know b) No

Importance of ethical issue in automobile industry

25%

35% Yes No Dont know 40%

Thus, it is clear that 40% ethical issues are the most important part of the marketing strategy in automobile industry.

65

Q8) In automobile sector it is difficult to apply good ethical practices perfectly, Do you agree with this statement?
a) Highly Agree c) Not agree e) Dont know b) Agree d) Highly not agree

Difficulty in applying good ethical practices

5% 7%

13% Highly Agree Agree 55%

20%

Not agree Highly not agree Dont know

55% is difficult to apply the ethical practices in automobile industry.

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Q9) How much do you agree with that, Is your organization promote corporate social responsibility (CSR)?
a) Highly Agree c) Not agree e) Dont know b) Agree d) Highly not agree

Responsibility of CSR

23% 35% Highly Agree 10% 7% 25% Agree Not agree Highly not agree Dont know

Thus CSR is 35% important for the industry.

67

Q10) Marketing/ Sales employees satisfaction is somewhere related with the good ethical practices, are you agree with this statement?
a) Highly Agree c) Not agree e) Dont know b) Agree d) highly not agree

Sales

25% 40% 5% 10% 20% Highly Agree Agree Not agree Highly not agree Dont know

40% employees feel satisfaction through the the use of ethical practices used in marketing strategy of automobile industry.

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CONCLUSION
Indian Automobile Industry is in the growth phase and the expected growth related to the ethical issues to follow, and the above facts and figures in our study also support this truth. Indian Automobile has a lot of scope for both two wheelers and four wheelers due to development in infrastructure of the country and especially the ethical practices demand of two wheeler has increased. According to Indian Statistical Organization the per capita income (Rs.38000) is increasing and national income at the rate of 14.4% which shows potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast that by 2016 Indian Industry will be world 7 largest manufacturers in all sections. The Indian auto market is still untapped the majority of the people in country dont own a four wheeler and all the major auto companies are trying to increase their sales by several moves. Like TATA has launch NANO the peoples car and now TATA motors is also planning to come out with an electric car as well as hybrid car, moreover in two wheeler segment many companies like Mahindra and Mahindra grow even more than expectations. From the Technical Analysis of both companies we come to know that the share price of Maruti will move in the band of Rs.1275 to Rs.1425 and that of TATA Motors will move in the range of Rs. 430 to Rs. 490 if certain correction made in the market. We have also come to know that every company posses its own beneficial way to promote the product by ethical issues. By analyzing the current trend of Indian Economy and Automobile Industry we can say that being a developing economy there is lot of scope for growth and this industry still

69

have to cross many levels so there is huge opportunities to invest in and this is proving as more and more foreign Companies setting up there ventures in India

70

CHAPTER-4 SUGGESTION/RECOMMENDATION
By analyzing the industry on various parameters with the help of implementing Fundamental and Technical tools we came to know that this industry has a lot of potential to grow in future. So recommending to invest in Automobile Industry have no doubt is going to be a good and smart option because this industry is booming like never before not only in India but all around the world. The returns which came out of this industry were very impressive recently, as if we take an example of TATA motors it gives approx 90% return in a period of just 3 months while Maruti Suzuki shows always a buy and hold position because there is possibility of growth in future, same situation is in two wheeler segment with market leader Hero-Honda a debt free company also have bright future ahead. The numbers which came out in the end of financial year 2009 prove that even in the period of recession the overall sales went up is sufficient to support to this fact hero honda. Through Technical analysis of TATA Motors and Maruti it can be recommended that for now Maruti share price shows that its a time to hold the position or buy more shares as there is scope in further rise in share prices until and unless any negative reaction or sentiments comes in the Economy. Investing in Maruti Suzuki for long time could be a good option whereas in TATA motors there is a chance of getting correction, as it already went on high side in a very short period of time so holding the shares for long time could be a wrong step, so at this

71

point of time those who invested earlier can book their profit or new investors can buy now and sell with in short period of time by earning profit in short period of time. The most preferred is friends and relatives for which the companies dont have any approach, but increasing its advertisements in television, Magazines and newspapers industry can increase its sales

72

BIBLIOGRAPHY

< en.wikipedia.org/wiki/Automobile_industry_in_India > About Automobile Car Industry in India

< http://world.honda.com/investors/annualreport/2009/pdf/2009-page24-29.pdf > Honda Motors Financial Status of world

<

http://automobiles.mapsofindia.com/cars/new-cars/honda-small-car.html

>

About

Honda Small Car < http://www.sagepub.com/upm-data/5005_Seidman_Chapter_5.pdf > A Journal about the Cars. < http://www.justauto.com/article.aspx?id=94799 > Article about Segments of Small cars Kotler, Philip; Keller, Kevin Lane; Koshy, Abraham; & Jha, Mithileshwar. (2009). Marketing Management.: Pearson Indian Edition 13th Edition; Chapter 1: Defining Marketing for the 21st Century, pp. 22-25; & Chapter 8: Identifying Market Segments and Targets, pp Malhotra, Naresh K.; & Dash, Strabhushan. (2009). Market Research An Applied Orientation: Pearson Indian Edition 15th Edition; Chapter 2: Defining the Marketing research Problem and Developing an Approach, pp. 38-53; Chapter 3: Research Design, pp. 79-86; Chapter 10: Questionnaire and Form Design, pp. 300-301; Chapter 13: Fieldwork, pp. 414-416, Chapter 14: Data Preparation, 428-431; & Chapter 22: Report Preparation and Presentation, pp. 698-712.

73

Black, Ken. (2009). Business Statistics: Wiley India Edition 4th Edition; Chapter 3: Descriptive Statistics, pp. 48-71; & Chapter 7: Sampling and sampling Distributions, pp. 223-231.

George, Darren; & Mallery, Paul. (2009). SPSS for Windows Step by Step: Pearson Low Price Edition 8th Edition; Chapter 3: creating and editing a data File, pp. 32-39; Chapter 4: Managing Data, pp. 47-61; Chapter 5: Graphs, pp. 74-86; & Chapter 6: Frequencies, pp. 91-96.

Mishra, Anil. (2008). Summer Internship Simplified: Biztantra 1st Edition

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APPENDIX
QUESTIONNAIRE
This is Adnan Razi from VBCET, Kanpur. I am doing a survey on ethical practices use in marketing strategies of automobile industry. In survey I will be getting to know about your satisfaction level and reasons related to ethical practices.

Kindly cooperate with me in filling the Questionnaire

Q 1. Is this your First Car, Additional Car or Replacement Car?

Q 2. Which are the other company car have gave you ethical satisfaction? Please specify. (Answer if option 2 is selected in Q. 1.)

Mahindra ify) ______________________________________________

Q 3. Which car have you replaced with your car? (Answer if option 3 is selected in Q. 1.)

Specify)______________________________________________

75

Q 4. Reasons for the purchase of New Car?

evious car had troubles -in value of the previous car become too low

ng new job

Company gave you a car

other (Please Specify) ___________________________________________

Q 5. Which are the other brands you are considering before purchasing car? Mahindra None

gon ______________________________________________

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Q 6. Please tell me what have you preferred before purchasing the car ? Power Having good brand name Fuel efficiency after sales services

Q 7. From which source have you got the information about ethical practices in marketing strategies of automobile before purchasing car?

Q8. Which things have you considered at the time of purchase of your new car?

Good ethical practces

Q 9. Which are the key satisfaction reasons in your car?

Better ethical policies

77

Q 10. Which are the key dissatisfaction reasons in your car?

table Drive -

Lack of good ethical issues

Q 11. Which additional feature would you like to be there in your car? __________________________________________________________________

Q 12. Do you understand that ethical issues are important for us?

Q 13. Do you normally drive the car or is it driven by some other family member also?

ven by more than one family member

Q 15. Do your satisfaction is important for purchasing new car? Yes No

Q 16. Can you associate yourself with the automobile industry?

78

Q 17. From where you have purchased your car?

Q18. What is the image in your mind in terms of automobile industry in ethical practices?

(Signature)

79

Demographic Questions

Name:Address:-

Telephone / Mobile No. :-

Gender:-

Age (in years) :

Your Education:

Your Family Income (Monthly) : 75,000

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Marital Status:-

Your Occupation:____________________________________________

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Limitations

Some places do not entertain researcher at all. The study depends upon samples. The findings of the study are subjected to time and cost consideration. During the visits to various locations, due to busy schedules of these persons repeated visits were required to get their confirmations as a result of which too much time was wasted.

Also many people asked for my visiting card to verify my authenticity, which I was not able to produce.

Probability of certain factors which could not be highlighted like (price, status symbol etc) because of customer ego and profile.

Researcher has observed that data was not sufficient and not up to the mark as per the expectations.

Due to the luxury segment the Honda Motors are exceptionally out of reach of the common

People creating a problem in generating data base for the survey to be conducted. Customer data base are not provided by Honda Motors services center because of it is confidential to the company. Honda Motors have provided recorded data on the sales figures.

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