1. By:
Group 2
Amit Kumar
Bishnu Panda
Nishant Jain
Subhasish Das
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2. Agenda
• Indian Small Car Segment
• Management Decision Problem
• Marketing Research Problem
• Research Design
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3. Indian Small Car Segment
• Largest small-car market in the world
• Second largest exporter behind Japan
• Forms 60% of Indian Car Market
• Decline in growth by 50% in FY12
(Apr’11-Oct’11)
o Successive interest rate hikes
o Increase in fuel price
o Pressure on disposable income due to
inflation
• Diesel Penetration
• Negatively impacted by production
disruptions at Maruti Suzuki, the
market leader in the segment
• Competitive pressures intensifying on
the back of new launches
• Small Car Segment grew by 2% by
Dec-11 (FY12) w.r.t. 6.5% growth rate
in 2011
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4. Management Decision Problem
• A new entrant wants to come up with a winning car in the booming
small car segment in India.
Marketing Research Problem
• To figure out the key parameters which contributes in the growing sales
in the small car segment
Macro – Environmental Micro – Environmental
o Inflation o Price
o Per Capita Disposable Income o Finance Options
o Global Crude Oil Prices o Distribution
o Interest Rates o Post Sales Service
o Government Interventions o Impact of communication channels
o Investments o Product Specifications
o Brand Loyalty
o Exchange of Cars
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5. Research Design
• Exploratory Research Design
o Secondary Data: qualitative analysis
• Descriptive Research Design
o Surveys via questionnaire
o Secondary Data: quantitative analysis
• Multiple Cross Sectional Design
• Causal Research
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6. Proposed Hypothesis
• Hyp1: Price sensitiveness is high in consumer buying behavior in this segment.
• Hyp2: Financing options play an important part in buying behavior.
• Hyp3: Distribution and Post Sales Service have a substantial contribution in
generating sales.
• Hyp4: Communication channels play a vital role in generating awareness of a
new car in the segment.
• Hyp5: It is both the product and the brand which controls the sale.
• Hyp6: Inflation, Interest rates and PCDI have significant impact on buying
behavior.
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7. Scaling Techniques and Measurement Scales
• Scaling Techniques to be used in the questionnaire:
o Rank Order Scaling (Comparative Scales)
o Likert Scale (Non-comparative Scales)
o Multi-item Scales (Non-comparative Scales)
• Data to be obtained shall be in the four scales viz.
o Nominal
o Ordinal
o Interval
o Ratio
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8. Sampling Techniques and Sample Size
• Sampling Method:
o Stratified Random Sampling
o Criterion: Age Group
• Sample Size:
o 120 for Primary Research
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