TOPIC

FRANCHISE NETWORK
EXPANSION OF MULTi BRAND
CAR WORKSHOP IN LUCKNOW

FACULTY MENTOR:- SUBMITTED BY:-

Mr. K.K. BHARTIYA SHASHANK SINGH

(Asst. prof.) M.B.A-II
STEP-HBTI, Roll. No-1518170093
OBJECTIVES OF THE STUDY

The study has been under taken with the main objective:

To Understand the Consumer awareness about MFCS

franchise in Lucknow.

To find the major challenges faced by MFCS in expanding

its franchise network in Lucknow.
SIGNIFICANCE OF THE STUDY:-

The project report Franchise network expansion of Multi Brand Car

Workshop in Lucknow signifies the in depth understanding of
customer perception regarding the MFCS franchise in Lucknow.
Along with the key factors which are directly responsible for the
hindrances in the network expansion of the MFCS in Lucknow.
It also gives a detailed analysis regarding the needs and expectations
of the local car workshop owners in regards to MFCS.
 RESEARCH METHODOLOGY
Research Design:-
The methodology adopted for this project is exploratory in nature thus there is
no hypothesis that has to be tested. The conclusions have been drawn by
exploratory research work.
Sample size:-
The sample size has been 50 Car workshop owners / Independent garages .
Conclusions had been arrived at using the responses from the questionnaires.
Sampling method:-
The method of sampling was convenience sampling.
In convenience sampling selection , the researcher chooses the sampling units
on the basis of convenience or accessibility. Since in this research work the
respondents were selected on the basis of convenience , thus the method was
convenience sampling.
DATA INTERPRETATION:data interpretationshashank.docx
QUESTIONNAIRE:questionnaire shashank.docx
Data Collection Method:-

Primary Data-
Primary data means data that are collected directly by the researcher using different
techniques like questionnaire, Depth interview, Survey, Schedules etc. for the first hand
information.
In this project, primary data has been collected by the means of questionnaire and
interviews.

Secondary Data-
Secondary data means data that are already available i.e.: refers to the data which have
already been collected and analyzed by someone else, usually published data are
available.
In this project secondary data has been gathered from websites of multi brand car
workshops , brochures of company and other websites , literature and publications.
 FINDINGS eerrr

Most of the Car workshop owners had been in this

business from more than 5 years and knew about
organized Multi brand car worksops but still about 78% of
the sample didnt knew about the franchise model of
Mahindra first choice services.

Most
of the target customers (approx.-77% ) did not
had sufficient land (7000 sq. ft.) required for
the franchise.

Most of them (approx.- 86% ) did not have sufficient

fund (INR 60 -100 Lacs ) for investment.
 About 58 % preferred Franchise model of MYTVS, Castrol
pitstop, Carnation and other competitors of Mahindra first
choice services ltd in terms of cost and features.

About 79% of the respondents were not interested in

MFCS franchise because of the high monthly fees.

In terms of features and service provided near about

74% people considered MFCS franchise to be good.

The best feature of MFCS franchise from customers

viewpoint came out to be their insurance tie-ups and
genuine spare parts support.
 CONCLUSIONS
The conclusions derived from the study are:-
Of all the important aspects considered while taking franchise of organized
multi brand car workshops the owners of Independent garages mainly
preferred low cost models.
In terms of features provided customers mainly preferred Mahindra first
choice services franchise ,their most attractive features being Insurance tie-
ups and , timely genuine spare parts support.
Most of the independent garage owners were not interested in Mahindra
first choice services franchise because of high monthly fees and huge
amount of Investment , shortage of required land was another major reason.
 Competition was another major obstacle faced by Mahindra first choice
services in expanding its franchise network in Lucknow city as most of the
independent garages already had tie ups with other organized multi brand
car service providers , the biggest and closest competitor being Castrol
Pitstop.

The features and support provided by Mahindra first choice services was
best of its kind as compared to other players in this industry but customers
were not interested because of its high cost. Also most of the independent
garages were satisfied with their current business position this was another
reason for lack of interest in the franchise model of Mahindra first choice
services ltd.

Customers mainly perceived the franchise model of Mahindra first choice

services as High cost - High support model and they mainly preferred
low cost models because of their current business position and low income.
 SUGGESTIONS
My humble suggestions to MAHINDRA FIRST CHOICE SERVICES LTD are:-

MFCS should try to reduce the cost of its Franchise model in order to cater
with the competitors who provide Low cost support

MFCS should also try to reduce the Land required for franchise as most of the
interested car workshop owners did not had sufficient land required.

MFCS should also try to provide the Machines, tools and equipment required
by car workshops as this had been one of the major concern of Independent
garages and also some of the competitors were providing it.

MFCS should also try to create awareness through marketing programmes

about its Franchise business model so that it may attract other businessmen
also as most of the target customers didnt knew about the franchise model of
MFCS.
 LIMITATIONS
The limitations of the study are narrated below:

The project is valid for the predefined area of work Lucknow (UP)
There may be some biased responses from the respondents.
Some respondents did not provide the full data.
The sample area and sample size has been limited due to time constraint.
Business owners (respondents) are reluctant for their feedbacks & opinions, and
authenticity of their statements cant be verified too.
All the observation and recommendation will be made on the feedback obtained
from survey.
Unavailability of Respondents
Limited resources since this was an individual project, thus there was a dearth of
manpower , money etc.