Analysis of the Pre-owned

car market in Mumbai

Maruti True Value
Guide: Gautam Trehan
Shafiq Shaikh
MMS B
Roll no.42

SITUATION ANALYSIS & PROBLEM

DEFINITION
Objectives, Scope and Limitations of the
Project of Study

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

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

METHODOLOGY OF
STUDY
Source of Data
Primary Data:
Systematic collection of information directly from respondents. This data is collected for the descriptive research. The survey data collected
during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer
behavior.

Secondary Data:
The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for
helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, website, directories, external
experts and miscellaneous report.

Data Collection Instrument

Survey Questionnaire

Population
For the purpose of this project self-administered questionnaire to potential customers and for standard commercial business enterprises
located in Mumbai city.

Sampling Method

Convenient Sampling
Sampling

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

Sampling

unit:
Standard Hotels, Business enterprises and households

Sample

Size:

100

Sampling

Method
Samples are selected on Non probability convenient sampling method.

Results and Findings

Professionals:

36 % of Respondents are of age 25-35, 37 % of Respondents are of age 3545, 23 % of Respondents are of age 45-55, 4 % of Respondents are of age
greater than 55
88 % of Respondents are male, 12 % of Respondents are Female
42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 %
of Respondents are under income Rs.1,50,000-Rs.2,00,000
81 % of Respondents are Married
31 % of Respondents have one child and 38 % of Respondents have two
children
50 % of Respondents considers budget while buying pre-owned car and 40
% of Respondents considers milage while buying pre-owned car,
40 % of Respondents heard about Maruti True Value
Remaining 60% heard it from Advertisements, friends/neighbours
58% say they would not buy from True Value

Recommendations and Suggestions

Professionals
Target Segment- the target customers whom I suggest Bellad Motors
should concentrate is the advocates, lecturers and petty business men,
because they are the respondents who are keen in buying pre owned
cars.
The target can also be segmented age wise, 25-45 are the most
interested segment in buying a pre owned car.

Students

Most of the students want to buy a pre owned car from an un certified dealer, because
of the price factor, therefore when targeting the students category lowering the price
should be considered. I suggest that the price can be lowered by not including the free
service and warranty on the car, as the students do not mind it.
The expected price of the pre owned cars is from Rs 50,000- 75,000.
The expected age of the car is mostly 3-5 yrs, which the company can consider these
aspects when targeting the students.
More than 50% of the students are not aware of the True Value concept, which again
calls for advertisements from Bellad Motors.

Conclusion

The study helped me gain valuable insights in Opportunity

Analysis and Consumer Behavior, towards buying a pre
owned car. This project titled , has been a knowledge
gaining experience for me. By interacting with the
respondents and making visits to the Uncertified Dealers.
I have understood that understanding customers is an art
and it takes a very strong brand image for a company to
retain & grow its market share. The results of the survey
proved to be both encouraging and partly discouraging too.
The respondents were not very positive about Marutis True
Value

THANK YOU