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  1. 1. A Study on“Consumer buying preference towards Mahindra Scorpio.”(Mahindra & Mahindra Ltd , BANGALORE)Prepared byNipon ChakrabortyRegistration No:11010121086Under the Guidance of Prof Jacob AlexanderIn partial fulfillment of the Course-Industry Internship Programme (IIP) in Semester II of the Master ofBusiness Administration (July 2011-13)BangaloreAlliance University Page 1
  2. 2. Master of Business AdministrationIndustry Internship Programme (IIP)DeclarationThis is to declare that the Report entitled “Consumer buying preference towards MahindraScorpio ”has been made for the partial fulfillment of the Course: Industry Internship Programme (IIP) inSemester II (Batch: july 2011-2013) by me at Mahindra & Mahindra Ltd under the guidance of Prof.Jacob AlexanderI confirm that this Report truly represents my work undertaken as a part of my IndustryInternship Programme (IIP). This work is not a replication of work done previously by any other person.I also confirm that the contents of the report and the views contained therein have been discussed anddeliberated with the Faculty Guide.Signature of the Student :Name of the Student : NIPON CHAKRABORTYRegistration No : 11010121086Alliance University Page 2
  3. 3. Master of Business AdministrationCertificateThis is to certify that Mr. NIPON CHAKRABORTY Regn. No. 11010121086 has completed the Reportentitled “Consumer buying preference towards Mahindra Scorpio” under my guidance for the partialfulfillment of the Course: Industry Internship Programme (IIP) in Semester II of the Master of BusinessAdministration.Signature of Faculty Guide:Name of the Faculty Guide: PROF. JACOB ALEXANDERAlliance University Page 3
  4. 4. ACKNOWLEDGEMENTA large number of individual contributed to this project. I am thankful to all of them for theirhelp and encouragement. My writing in this project report has also been influenced by numberof website and standard textbooks. As far as possible, they have been fully acknowledged at theappropriate place .I express my gratitude to all of them.The last 12-weeks with Mahindra & Mahindra Ltd , Bangalore has been full oflearning and sense of contribution towards the organization. First of all I owe my heartfeltgratitude to my mentor Prof. Jacob Alexander for his noble guidance throughout thecompletion of the Project job in timely and also sparing his valuable time and extending allnecessary support for the same.I would like to extend my heartfelt thanks to my industry guide Mr. Sivaramakrishnan .R,(Area Sales Manager, Mahindra & Mahindra Ltd ) for giving me an opportunity to workon this project and for their kind support, inspiration, encouragement and giving the freedom tocomplete the project at Mahindra & Mahindra Ltd, Bangalore.Nipon ChakrabortyAlliance University Page 4
  5. 5. CONTENTSCh. No TITLE Page NoExecutive Summary 81. Introduction 101.1) Industry Overview 121.2) Company overview 191.3) Project Profile 362 Methodology 382.1) Need of the Study 382.2) Statement of problem 382.3) Objectives of the study 382.4) Research Design 392.4.1) Data source 392.4.2) Sample Size 392.4.3) Sampling Procedure 392.4.4) Tools Used For Analysis 392.5)Limitations of the study 393. Observations & Findings 424. Recommendations 685. Conclusion 706. Learning Outcome 72Annexure 74Bibliography 79LIST OF TABLESTable No Title Page no3.1 Analysis on basis of age 423.2 Gender of respondents 433.3 Analysis on basis of education 443.4 Occupation of Respondents 453.5 Car Model 463.6 Factors influencing brand preference 473.7 Level of Satisfaction 483.8 Level of Brand loyalty 49Alliance University Page 5
  6. 6. Alliance University Page 6
  7. 7. Executive SummaryAlliance University Page 7
  8. 8. EXECUTIVE SUMMARYToday we are moving in that era, where Companies are not just a single entity, they are movingaway from the traditional way they used to be, breaking barriers of being limited to a singlesector. Understanding the needs of different segments of the consumers, and Integrated fromOther firms who are in completely different sectors; that is slowly we are moving in aInterdependent economy and all this can be attributed to numerous reasons, but some of theprominent causes for this fundamental shift is Globalization, Use of Innovativetools/techniques/methods in Businesses, Technological advancements, and Changing customerand Society.This study gives an overview of the Indian automotive Industry, its major players, growth andoutlook. This report also provide ample of information regarding Mahindra & Mahindra Ltd..This report provides an analysis of the Internal as well as External situation of Mahindra &Mahindra Ltd in the form of SWOT Analysis and PORTER’S FIVE FORCES Model.This project explores the consumer buying preference towards Mahindra Scorpio. The detailedanalysis of marketing, a consumer behavior and brand preference of SUV is carried out inBangalore. As a result, focusing on an industry where brands, marketing knowledge anddistribution networks have been important determinants in the growth and survival of firms. Itreaches distinct conclusions. The project illustrates the analysis and interpretation of data.Finally it concludes with findings and recommendations of the study which may be useful forgeneral public as even the manufacturers and dealers can understand the dimensions reflectingbrand preference of passenger cars and impact of all these factors on customer satisfaction.Alliance University Page 8
  9. 9. CHAPTER -1INTRODUCTIONAlliance University Page 9
  10. 10. INTRODUCTIONThe fast evolving Indian market is one of the most promising in the world and so is the Indianconsumer. Rising incomes, multiple income households, exposure to international life styles andmedia, easier financial credit and an upbeat economy are the key drivers enhancing consumeraspirations and consumption. India, with over one billion people comprising of differentsegments of consumers, based on class, status, and income, is a huge and lucrative market. Thismarket is undergoing a sea change and the impetus to growth is fuelled by qualitative changes inthe consumers preference. There has been a significant increase in awareness among the Indianconsumers. They are discerning and are beginning to demand. Their spending has increased andthe way they spend on various items too has changed in the recent years. Having become muchmore open- minded and experimental in their perspective, a discernible shift in their preferencein favor of higher-end, technologically superior branded products can be noticed. The rising rateof growth in disposable income with higher propensity to consume has changed the lifestylesand the socio-economic environment of the market. An interesting fact is that the Indian marketAlliance University Page 10
  11. 11. has a substantial middle class, that is roughly estimated at 250 million people with a sizabledisposable income. The middle-income group ($1,162-$1,190) spends more on consumerexpendables than the rich do, thus contributing significantly to the changes in the market.Combined, the middle and the lower income group provide 60% of the value of the Indianmarket (Consumer Outlook, 2011). This income-related population class has its ownconsumption pattern and behavior. Data of these patterns serve as an important indicator forforecasting and understanding consumer behavior. In fact, it becomes imperative for companiesto understand the preferences of these customers, which will enable them to embark onstrategies of effectively reaching them . This research attempts to study the p of the consumersbuying and with specific reference to the product category Mahindra Scorpio.Alliance University Page 11
  12. 12. INDUSTRY OVERVIEWINDUSTRY OVERVIEWHistory and development of Automobiles also marks the dynamism in technologicalgrowth men have achieved. From the days of horseless carriages to the modern-age self-guidedautomobiles that are designed meticulously using cutting-edge technology, we have certainly-traveled too far.Automobile Industry in India is still in its infancy but growing rapidly. The opportunitiesin the automobile industry in India are attracting big names with the big purse and they areinvesting vigorously in infrastructure, design and development, and marketing. Automobileindustry in India is today poised for (he big leap and this segment helps you to be ready for that.INDIAN AUTOMOBILE INDUSTRYAlliance University Page 12
  13. 13. The automobile industry is one of the core industries in India economy, whose prospectis reflective of the economic resilience of the economy. With the liberalization of the economy.India has become the playground of major global automobile majors.The automobile industry in India is gradually evolving to replicate those of developedcountries. The report focuses on the trends that are emerging in the industry across segments,namely, passenger cars/multi-utility vehicles, commercial vehicles, two-wheelers and tractors.The qualitative analysis of the various trends reveals that the industry offers immense scopeeven for allied industries and those looking at investing in the auto industry’s a background, abrief perspective of the global automobile industry across segments has been provided withcomparisons on Indian scenario wherever needed. It discusses the current scenario in the industry,with detailed look on segmentation, structure, and supply and demand scenarios. A detailedcompetitive analysis of the industry has been provided backed warn comprehensive details onproduction, sales, exports and imports over the years, across segments.Sales have increased with the entry of several foreign manufacturers and the introductionof new vehicle models. The report also deals with aggressive marketing strategies undertaken bydifferent manufacturers in India. This highlights key issues influencing the automotive industry inIndia such as import and excise duties, emission norms etc and it also deals with variousgovernment regulations.Alliance University Page 13
  14. 14. The trend of automobile production and market share of various segment is shown in the nextpage. The graph shows how the production of automobiles has increased since 1971.Alliance University Page 14
  15. 15. Automobile production in India since 1971-2003 (source: SIAM and ACMA data)Market Share of Various Segment of Automobiles ( Source: SIAM data)Major Players in Indian Automotive Industry.Alliance University Page 15
  16. 16. Tata MotorsMarket Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%Tata Motors Limited is Indias largest automobile company, with consolidated revenues of USD14 billion in 2008-09. It is the leader in commercial vehicles and among the top three inpassenger vehicles. Tata Motors has winning products in the compact, midsize car and utilityvehicle segments. The company is the worlds fourth largest truck manufacturer, and the worldssecond largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, TataMotors as has produced and sold over 4 million vehicles in India.Maruti Suzuki IndiaMarket Share: Passenger Vehicles 46.07%Alliance University Page 16
  17. 17. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is Indiaslargest passenger car company, accounting for over 45% of the domestic car market. Thecompany offers a complete range of cars from entry level Maruti-800 and Alto, to stylishhatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utilityvehicle Grand Vitara.Hyundai Motor IndiaMarket Share: Passenger Vehicles 14.15%Hyundai Motor India Limited is a wholly owned subsidiary of worlds fifth largest automobilecompany, Hyundai Motor Company, South Korea, and is the largest passenger car exporter.Hyundai Motor presently markets 49 variants of passenger cars across segments. These includesthe Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accentand the Verna in the C segment, the Sonata Transform in the E segment..Mahindra & MahindraMarket Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheelersegments directly. The company competes in the Light Commercial Vehicle segment through itsjoint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger carsegment through another joint venture subsidiary Mahindra Renault. In the year 2009, on thedomestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles(including 44,533 three-wheelers, 8,603 Light Commercial Vehicles through Mahindra NavistarAutomotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over theprevious year.Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo waslaunched in South Africa. The company formed a new joint venture Mahindra AutomotiveAustralia Pty. Limited, to focus on the Australian Market.FORDAlliance University Page 17
  18. 18. Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India.Ford India Private Limiteds head quarters are located in Chengalpattu, Chennai, Tamil Nadu. Itcurrently is the 6th largest car makert in India after MarutiSuzuki, Hyundai, Tata, Mahindra andChevrolet.TOYOTAToyota Kirloskar Motor Private Limited is joint venture between Toyota MotorCorporation and the Kirloskar Group, for the manufacture and sales of Toyota cars in India.. Itcurrently is the 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra.The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its missionstatement aims to play a major role in the development of the automotive industry and thecreation of employment opportunities, not only through its dealer network, but also throughancillary industries with a business philosophy of "Putting Customer First".SKODAŠkoda Auto India Private Limited, more commonly referred to as Škoda Auto India,established November 2001, is a fully owned subsidiary of the Czech automotivemanufacturer Škoda Auto and a division of Volkswagen Group Sales India.Alliance University Page 18
  19. 19. Company OverviewCOMPANY OVERVIEW1945 October 2, Mahindra & Mohammed formed in Ludhiana.1948:• The Company was renamed Mahindra & Mahindra Limited (M & M)• Steel Trading business was started in association with suppliers in U.K1948:• Business connections in USA through Mahindra WallaceAlliance University Page 19
  20. 20. 1949:• Wallace Steel trading on behalf of European suppliers• Jeep Assembly commenced1950:• The first business with Mitsubishi Corporation (for 5000 Tons) for wagon buildingplates for supply from Yawata Iron & Steel1953:• Otis Elevator Co. (India) established .1954:• Technical & Financial Collaboration with Willys Overland Corporation1956:• Shares listed on the Bombay Stock Exchange• Dr. Beck & Co. formed - a JV with Dr. Beck & Co., Germany1957:• Mahindra Owen formed - a JV with Rubery Owen & Co. Ltd., UK1958:• Machine Tools Division startedAlliance University Page 20
  21. 21. 1960:• Mahindra Sintered Products Ltd. (MSP) formed - a JV with the GKN Group, UK.1962:• Mahindra Ugine Steel Company (MUSCO) formed - a JV with Ugine Kuhlmann, France1963:• International Tractor Co. of India (ITCI) formed - a JV with International Harvester Co.,USA1965:• Vickers Sperry of India Ltd. a JV with Sperry Rand Corporation, USA• Roplas (India) a collaboration with Rubery Owen, UK• Manufacture of Light Commercial Vehicles commenced.1970:• Mahindra Engineering & Chemical Products Ltd.(MECP) commenced operations.1971:• International Harvester collaboration ended1975:• Switch over to diesel vehicles in-house development.Alliance University Page 21
  22. 22. 1977:• ITCI merges with M&M, to become its Tractor Division1979:• License from Automobiles Peugeot, France for manufacture of XDP 4.90 Diesel Engines1982:• License from KIA for manufacture of 4 Speed Transmissions• "Mahindra" brand of tractors born• Siro Plats formed1983:• M&M becomes market leader in Indian Tractor Market. (Position retained ever since)1984:• Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and marketutility vehicles in Europe1986:• Mahindra British Telecom (MBT) formed - a JV with British Telecommunications plc(BT), UK1987:• Acquired International Instruments Ltd.Alliance University Page 22
  23. 23. 1989:• Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW1991:• Introduction of Commander series.1992:• Triton Overwater Transport Agency Ltd., formed• Implementation of the Service Center project at Kanhe• Merged diverse activities of Steel, Machine Tools, Graphics into Intertrade Division1993:• Mahindra Steel Service Centre Limited formed in association with MitsubishiCorporation and Nissho Iwai Corporation of Japan.• Mahindra Acres Consulting Engineers Ltd. (MACE) formed - a JV with AcresInternational, Canada• Incorporation of MBT International Inc., USA, a wholly owned subsidiary of MBTThe Company’s maiden international offering – the US$ 75m GDR issue.• Introduction of Armada.1994:• Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) formed• Mahindra USA Inc., formed, for distribution of Tractors in the USA• EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company Ltd.A/S, DenmarkAlliance University Page 23
  24. 24. • Reorganization of the Group creating six Strategic Business UnitsMSL Division (Auto Components) hived off to form Mahindra Sona Ltd.• Mahindra Nissan Allwyn Limited merged with the Company.1995:• Mahindra Holding & Finance Ltd.(MHFL) becomes a subsidiary of M & M to carry outbusiness as an investment company• Technical collaboration with Mitsubishi / Samcor to manufacture L300.1996:• Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA to manufacturepassenger cars• The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115million.1997:• A new die shop was inaugurated at Nasik• Inauguration of The Mahindra United World College of India.1999:• Launch of ‘Bijlee’ a battery-operated, 3-wheeler environmental-friendly vehicle.• The largest online used vehicle website in India launched by Mahindra NetworkServices.• The business of Inter trade Division and Mahindra Exports Ltd. combined and renamedMahindra Inter trade Ltd.• The Company acquired major stake in Gujarat Tractors.Alliance University Page 24
  25. 25. • Mahindra & Mahindra Financial Services Limited becomes a subsidiary of M&M2000:• The Company unveils new logo.• Mahindra Auto Specialties Ltd. a new 100% subsidiary is formed.M&M sets up its first satellite tractor plant at Rudrapur.• The Company launches New Age Tractor, the Mahindra Arjun 605 DI (60 HP tractor).• The Company launches Bolero GLX a Utility Vehicle a response to needs of urbanconsumer.2001:• A 3-wheeler diesel vehicle "Champion" is launched.• The Company launches Mahindra MaXX a MUV positioned with the caption MaximumSpace, Maximum Comfort.• M&M ties up with Renault for petrol engines.• M&M established a separate division to provide Defence Solutions .2002:• M&M launches Scorpio - the new generation Sports Utility Vehicle2003:• Scorpio - Recipient of prestigious Awards -• "Car of the Year" Award from Business Standard Motoring• "Best SUV of the Year" and "Best Car of the Year" Awards from BBC onWheels• "Car of the Year" Award from CNBC Auto Car• M&M launches the "Invader" - a sporty open top vehicle.Alliance University Page 25
  26. 26. • M&M opens a second tractor assembly plant in USA.• M&M launches MaXX Pik Up.• M&M Tractors awarded the prestigious Deming Prize for excellence in Quality -• The first tractor company in the world to receive the award.• M&M launches Indias first Turbo tractor - Mahindra Sarpanch 595 DI Super Turbo.• Scorpio wins National Award for R&D.• M&M ventures into Industrial Engine business• Mahindra Defence & Lockheed Martin Information Systems, UK, strike an alliance forDefence Product.2004:• Launched the Mahindra World Tractor - a 75 HP tractor in the overseas market.• Formed a new Sector, Mahindra Systems and Automotive Technologies (MSAT), tofocus on developing components as well as offering engineering services.• Launched "Bolero" and "Scorpio" in Latin American, Middle East and South Africanmarkets.• Signed MOU to enter into JV with Jiangling Motor Co. Group (JMCG) of China toacquire tractor-manufacturing assets from Jiangling Tractor Company, a subsidiary ofJMCG.• M&M becomes the first Indian company to achieve sales of one million tractors.2005:• Acquired 51% stake in SAR Transmission Private Limited, a company engaged inmanufacture of gears and transmission shafts.• M&M Farm Equipment Sector launch operations in Australia.Alliance University Page 26
  27. 27. • M&M becomes the first Indian auto manufacturer to launch the Common Rail DieselEngine (CRDe), offering it on the Scorpio.• M&M and Renault enter into a JV to manufacture of the mid-sized sedan, Logan, inIndia.• M&M and International Truck and Engine Corporation enter into a JV to manufactureTrucks & Buses in India• The first tractor from the JV, Mahindra (China) Tractor Co. Limited, rolled out on 2 July20052006:• Mahindra displays Scorpio hybrid SUV at Auto Expo India• Mahindra,Renault & Nissan announce Chennai as the location for a 400,000 capacityproduction site.2007:• Formation of Mahindra Navistar engines at Chakkan plant.• M&M made its entry into the passenger car segment with the Logan in April 2007 underthe Mahindra Renault joint venture.• M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar,the joint venture with International Truck, USA.2008:Alliance University Page 27
  28. 28. • Mahindra commenced its first overseas CKD operations with the launch of theMahindra Scorpio in Egypt.2009:• Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June2009, the Xylo has sold over 15000 units.2010:• Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 inNorth America.2011:• In 2011, it also gained a controlling stake in South Koreas SsangYong Motor Company• Mahindra & Mahindra Ltd. (M&M), has launched its much awaited SUV, XUV 500,code named as W201 in September 20112012:• Launch of Mahindra scooter Rodeo RZ .LIST OF COMPANIES UNDER MAHINDRA GROUP1. Mahindra & Mahindra.2. Mahindra Aerospace.3. Mahindra Engineering Services.Alliance University Page 28
  29. 29. 4. Mahindra & Mahindra Financial Services Limited.5. Mahindra Systech.6. Mahindra Satyam.7. Mahindra Lifespace Developers.8. Mahindra Ugine Steel Company.9. Mahindra Forgings.COMPANY PROFILEVision Statement: To create a fully collaborative environment in which suppliers can deliverexactly what the company needs, when it needs it, and at a competitive costMission: To create Indias largest automobile and automobile-related products distributionnetwork by providing dealers and customers with the largest choice of unique world-classproducts and services.Mahindra & Mahindra Limited, Automotive Sector is a major player in the automotiveindustry in India. It is a part of Rs. 8000 Crores Mahindra group which manufactures MultiUtility Vehicles ( MUVs- further classified into soft tops, hard tops and pick-ups), LightCommercial Vehicles (LCVs) ,three wheelers two wheelers.M&Ms association with the automobile business dates back to 1945. The Company wasincorporated in 1945 and was originally formed to manufacture utility vehicles for the Indianmarket, initially by importing and assembling Willys Jeep kits. The manufacture of utilityvehicles commenced in 1954 in collaboration with Willys Overland Corporation and itsAlliance University Page 29
  30. 30. successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the DaimlerChrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV)in 1965. The Company has recently entered the three-wheeler market.Over the years, the Mahindra brand of vehicles have come to represent high quality,ruggedness, durability, reliability, easy maintenance and operational economy. These are thequalities that have endeared the vehicle to individuals as well as institutions like the Indianarmed forces. M&M is the leader in the MUV business in the country since inception.M&M has comprehensive manufacturing facilities with high level of vertical integration.M&Ms automotive division has four manufacturing plants, three in the state of Maharashtra andone in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-utility vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles andthree-wheelers are manufactured at the Companys plant in Zaheerabad in Andhra Pradesh.Our Mumbai and Nasik plants with the R&D facility at Nasik are ISO/TS 16949certified. The Mumbai plant has also been recommended for the TPM excellence award. Ourengine plant at Igatpuri has QS 9000 certification. Our LCV & three-wheeler plant atZaheerabad have ISO 9001:1994 certification. Both of these plants are also working towards TS16949 certification. Our plants in Mumbai and Igatpuri are also ISO 14001 certified.M&M has a strong Research & Development set-up, with over 300 engineers in theautomotive division. The Companys technical prowess is proven by negligible import content inour vehicle and by the design and development of a totally, from ground upward, newcontemporary SUV - Scorpio.The divisions marketing efforts are supported by a network of more than 275 dealersacross the country, which are managed by 20 sales offices. Additionally, the division has anational network of authorized service stations and stockiest to meet customer needs forservicing and spare parts.Having conquered a substantial portion of Indias semi-urban and rural markets, thedivision has in recent year’s secured significant success in urban regions following theAlliance University Page 30
  31. 31. introduction of premium MUVs like Bolero, and Scorpio. Scorpio is M&Ms first indigenouslydeveloped Sports Utility Vehicle - an off road vehicle with car like comforts. The Scorpio waslaunched in June 2002 and has been universally acclaimed. It was declared to be the "Car of theYear" by CNBC AutoCAD, BBC Wheels and Business Standard Motoring.SWOT ANALYSIS:STRENGTHS• Highly innovative.(eg: first Indian company to introduce hybrid engine)• High production capacity of vehicles.• Possess all categories of vehicles from two wheeler to sixteen wheeler.• Well versed with the conditions of road in India.• Possess high brand name and high brand attachments.WEAKNESS• Highly dependent on rural areas.• Possess less technological power in comparison to foreign players.OPPURTUNITIES• Stepping into new business due to possession of huge cash eg: communications, medical,airlines etc.• Launching vehicles in untapped markets of different countries.THREATSAlliance University Page 31
  32. 32. • Incoming of foreign players.• Increasing cost of fuel.• Increasing competition.INTRODUCTION TO MAHINDRA SCORPIOThe Mahindra Scorpio is an SUV manufactured by Mahindra & Mahindra Limited, theflagship company of the Indian Mahindra Group. It was the first SUV from the company builtfor the global market in 2002. The Scorpio has been successfully accepted in internationalmarkets across the globe, and will shortly be launched in the United States.The Scorpio was conceptualized and designed by the in-house integrated design andmanufacturing team of M&M. The car has been the recipient of three prestigious awards: the"Car of the Year" award from Business Standard Motoring as well as the "Best SUV of theYear" and the "Best Car of the Year" awards, both from BBC World Wheels.DIFFERENT GENERATIONSAlliance University Page 32
  33. 33. First Generation• Soon after the success of the Scorpio, Mahindra launched an upgraded Scorpio withplush seats and rear centre arm rest, dual tone exterior color and various minor changes.Second Generation• In April 2006, the company launched an upgraded Scorpio – dubbing it the All-NewScorpio.• In June 2007, Mahindra launched a pick-up version in India known as the ScorpioGetaway.Third Generation• In April 2008, Mahindra revealed a concept of a diesel-electric hybrid version of theirScorpio SUV, with a 6 speed automatic transmission gears.• In 2009, they came up with more safety measures such as ABS Brakes and Airbags.Performance of the car1. Scorpio to capture 22 per cent of the premium hard top market in F03 (9 months)2. Sell of 12000 Scorpios in F03 (9 months)3. Mahindra unaided brand recall score to increase by 22 pts (defined in terms of BrandTrack study scores)4. Scorpio brand recall score to achieve 50 points (in W4)Within three years of launch* Scorpio to capture 45 per cent of the premium hard top market* Scorpio to sell 24,000 units in F04* Mahindra to emerge as a true urban playerAlliance University Page 33
  34. 34. Market Positioning• It was positioned as such that it should communicate that the vehicle is better than rest ofall the UV cars and is a better buy in terms of money.Different Models of Mahindra Scorpio• Mahindra Scorpio LX : This is the base model with many advanced features such asmHawk engine, digital immobilizer, collapsible steering column, crash protectioncrumple zone, illuminated spoiler, sporty bonnet scoop and tubeless tyres. In November2011, a 4WD version was introduced in the LX trim.• Mahindra Scorpio Getaway : This variant is powered by the 2.6L, 2609cc, diesel engine.It satisfies only BS III emission norms, so it is not available in metro cities.• Mahindra Scorpio SLE : This is an upgraded version with additional features like ABS,air dams and mud flaps, front fog lamps, voice assist system, electrically operatedORVMs and middle row sliding seats.• Mahindra Scorpio VLX : This is an upgraded version with additional features like sportydecals, alloy wheels, anti pinch smart windows, cruise control and audio controls on thesteering wheel, dual airbags, micro hybrid technology, 2 Din audio system, intellipark,tyre tronics, and blue vision bulbs.• Mahindra Scorpio VLX AT : This is the premium model with an additional feature of anautomatic transmission gearbox.• Mahindra Scorpio VLX AT 4WD: this is the premium model with dual airbags, ABSand 4WD.Alliance University Page 34
  35. 35. Alliance University Page 35
  36. 36. PROJECT PROFILEPROJECT PROFILEThere is only one valid definition of a business purpose: to create a customer. The projectAlliance University Page 36
  37. 37. deals with how Mahindra should focus on to create customers. This Process emphasizes theimportance of various steps in order to create and retain customers, because today there areplenty of options available for the customers, so for any firm it’s crucial that they create valuecustomers and keep reminding them about the recent happening and other beneficialassociations. This research is addressed from the perspective that in order to determine the keyattributes which determine consumer’s perception and buying preference towards MahindraScorpio, the correct meaning of the construct must be clearly defined from the start.This paper describes the research problem, “the SUV product class of the Mahindra asperceived by consumers via the Construct definition, Object classification, Attributeclassification, SUV consumers for rater-entity classification. The attributes are formulated usingcontent analysis by the rater entity based on consumer responses. An analysis and interpretationof the respondants statements are presented. This is followed by a discussion of the advantagesand disadvantages of the methodology and recommendations for further research.Alliance University Page 37
  39. 39. This study focuses on the decision-making process and resulting consumer buying preferencestowards Mahindra Scorpio . It provides information that may help the organization to identifyopportunities and to help them to decide if the market is a potentially profitable segment, afterthe evaluation of the size, growth, accessibility and responsiveness of the consumers. It providesanswers to questions about the buying preference of SUV and provide organization with thenecessary information to develop effective marketing strategies.STATEMENT OF THE PROBLEMPeople who were not ready to spend their money on luxuries have now changed their attitudethat yesterday’s luxuries are today’s necessities.To be a successful marketer it is absolutelyessential to read the minds and perceptions of the prospective buyers of cars. In the globallyprevailing competitive environment corporate are very keen in knowing consumer behavior andtheir buying preference in order to promote sales of their product. This particular feature mademe to take up the research topic on consumer buying preference towards SUV. To study theproblem effectively, Mahindra Scorpio is chosen taking into the account the emergence of manynew brands of the SUV product in the recent past.OBJECTIVES OF THE STUDYThe specific objectives of the study are:a) To identify factors influencing consumers perception towards Mahindra Scorpio.b) To find a few important factors which contribute to consumer preference towardsMahindra Scorpio .RESEARCH DESIGNDATA SOURCEThe study is an empirical research based upon Primary data. A detailed survey has to beconducted from among car owners with the help of structured interview schedule so as to elicitfirst-hand information about brand equity. This particular study has used in depth interview as ameans for obtaining primary data. Survey method has been adopted to elicit the views of localand global brand car owners.SAMPLE SIZEAlliance University Page 39
  40. 40. The customer’s preference towards SUV is studied by administering structured interviewschedule with 50 customers in Bangalore city. I have adopted cluster-sampling techniques forchoosing sample respondents. The dealers of selected car brands are identified as clusters.Consumer buying is related with several dimension like age, gender, perception etc.SELECTION OF THE CORPORATE BRANDThis study aims to focus on the SUV, specifically the three segments of SUV viz. MahindraScorpio . As on date, there are twenty car manufacturers in Indian Car Industry. The majorplayers of SUV in Indian car Industry are Mahindra Scorpio , Tata Safari , Toyota Innova .According to a survey by the Automotive Component Manufacturers Association of India(ACMA), the market share of SUV in India in the year 2008-09 states that Scorpio have 45%market share, Innova have 26% market share and Tata Safari have 12.7% market share. In total,84% market shares are occupied by these three major brands.TOOLS USED FOR ANALYSISSpss and excel tool is used for analysis.Test used for Analysis is Chi square test.LIMITATIONS OF THE STUDYEvery research is limited by its imagination is true, but we definitely have some limitations onthis research. The limitations are as follows:1. Considering the huge population that we have the sample data that will be collected is verysmall. The primary data collected is only from 50 respondents of Bangalore so this findingsmay not represent all customers owning SUV. The time constraint is also one of the factor as itwas not possible to meet each and every customers owning suv.2. Also to the fact that many respondents will not reply correctly to the questions that have beenasked to them.3 . Errors can be considered while understanding or interpreting the questions in the survey4. Errors can be also considered during data entry.5. This study does not include any other types of vehicle.Alliance University Page 40
  41. 41. Alliance University Page 41
  42. 42. CHAPTER-3ANALYSIS AND FINDINGSOBSERVATIONS AND FINDINGSTABLE NO 3. 1: ANALYSIS ON THE BASIS OF AGEAge Groups No. ofRespondentsPercentagesLess than 25 5 10Alliance University Page 42
  43. 43. 024681012141618lessthan2535-4555-65no. ofrespondants3-D Column 23-D Column 325-35 8 1635-45 18 3645-55 14 2855-65 5 10TOTAL 50 10005101520less than2525-35 35-45 45-55 55-65no of respondantsTable No. 3.1 shows the Analysis on the basis of age, 36 per cent of the total respondents are inthe age group of 35-45 years, followed by 28 percent in the age group of 4 5-55 years of age.Ten cent of the total are below 25 years. This reveals that maximum respondents are in the agegroup of 25-45 years.Alliance University Page 43
  44. 44. TABLE 3. 2 : GENDER OF THE RESPONDENTSGENDER NO OF THERESPONDENTSPERCENTAGEMALE 40 80FEMALE 10 20TOTAL 50 100010203040male femaleno ofrespondantsTable No.3.2 shows the gender of the respondent’s majority of the respondents do male with asample size of 50 constitute 80% and remaining are female respondentsTABLE NO. 3.3: ANALYSIS ON THE BASIS OF EDUCATION QUALIFICATIONAlliance University Page 44
  45. 45. QUALIFICATION NO OF THERESPONDENTSPERCENTAGEMETRIC 4 8HSC 12 24GRADUATE 16 32POST GRADUATE 5 10PROFESSIONAL DEGREE 13 26T0TAL 50 1000246810121416METRIC GRADUATE PROFESSIONALTable no.3.3 shows the analysis of respondents on the basis of education qualification. 32percent are graduate while 26 percent have professional degree.TABLE NO.3. 4 : OCCUPATION OF RESPONDANTSOCCUPATION NO OF RESPONDANTS PERCENTAGESProfessional 12 24Alliance University Page 45
  46. 46. Govt. employee 6 12Pvt. employee 10 20Own Business 22 44TOTAL 50 1000510152025professional govt employee pvt employee own businessNOOF RESPONDANTSTable No.3.4 shows the analysis of occupation of respondents. A maximum forty four per centof the total respondents have their own business, 12 percent are Government employee, and 20percent of the respondents are private employees while 24 per cent of the respondents areprofessionals.TABLE NO. 3.5 : CAR MODELSource of awareness No. of respondents PercentageMahindra Scorpio 30 60Alliance University Page 46
  47. 47. Tata Safari 8 16Toyota Innova 12 16Total 50 100051015202530scorpio safari innovaTable No. 3.5 shows the car models used by the car owners. Sixty per cent of the totalrespondents are using scorpio, sixteen per cent have safari and rests of the twenty four percent ofthe respondents have Innova It clearly shows that 76% of the respondents have local brands.TABLE NO.3. 6: FACTORS INFLUENCING BRAND PREFERENCEFactors No. Of respondent PercentagePrice 12 24Brand status 17 34Mileage 9 18Alliance University Page 47
  48. 48. Low maintaining cost 7 14After sale service 5 10Total 50 100024681012141618price mileage after salesserviceno of respondantsTable No 3.6 shows the Factors incfluencing brand preferance According to the response ofcustomers 34% of the respondents preferred brand status as important factor influencing brandpreference, 24% of the respondents preferred price as an important factor, 18% of therespondents preferred Mileage as an important factor, 14% of the respondents preferred forlow maintaining cost and rest 10 per cent preferred after sales service as an important factor inbrand preference.TABLE NO. 3.7 : LEVEL OF SATIAFACTIONNo. of respondent PercentageLevel of satisfactionVery high 20 40High 15 30Medium 10 20Alliance University Page 48
  49. 49. Low 5 10Total 50 10005101520very high high medium lowno ofrespondantsTable No. 3.7. shows the level of satisfaction, forty per cent of the respondents are highlysatisfied with the car which they are using, thirty per cent of the car user are also satisfied withthe car and ten per cent of the car users are not satisfied with the performance of their car. Thisreveals that a maximum of seventy per cent of the respondents are satisfied with the car whichthey are usingTABLE 3.8 : LEVEL OF BRAND LOYALTYChange in Brands No. of Respondents PercentageYes 20 40No 30 60Total 50 100Alliance University Page 49
  50. 50. 051015202530yes noNo. ofRespondentsTable No. 3.8 shows the status of the respondents towards the brand loyalty. The responseshows that 60 per cent of the respondents do not want to change their brands often, while 40per cent of the respondents said they may change their car brands.ANALYSIS OF CHI-SQUARE TEST RESULTSgender * preferred SUVH0: There is no impact of gender on factors of brand preference of SUV.H1: There is significant impact of gender on factors of brand preference of SUV.Crosstabpreferred SUV TotalAlliance University Page 50
  51. 51. Safari Scorpio Innovagender Male Count 8 23 9 40% within gender 20.0% 57.5% 22.5% 100.0%female Count 0 7 3 10% within gender .0% 70.0% 30.0% 100.0%Total Count 8 30 12 50% within gender 16.0% 60.0% 24.0% 100.0%Chi-Square TestsValue DfAsymp. Sig. (2-sided)Pearson Chi-Square 2.396(a) 2 .302Likelihood Ratio 3.948 2 .139Linear-by-Linear Association 1.506 1 .220N of Valid Cases50a 2 cells (33.3%) have expected count less than 5. The minimum expected count is 1.60.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of age on preference of SUV.gender * factors of brand preferenceH0: There is no impact of gender on factors of brand preference of SUV.H1: There is significant impact of gender on factors of brand preference of SUV.Crosstabfactors of brand preference Totalprice Mileagebrandstatusaftersalesservicelowmaintenance costs priceAlliance University Page 51
  52. 52. gender Male Count 9 8 15 2 6 40% withingender22.5% 20.0% 37.5% 5.0% 15.0% 100.0%FemaleCount3 1 2 3 1 10% withingender30.0% 10.0% 20.0% 30.0% 10.0% 100.0%Total Count 12 9 17 5 7 50% withingender24.0% 18.0% 34.0% 10.0% 14.0% 100.0%Chi-Square TestsValue DfAsymp. Sig.(2-sided)Pearson Chi-Square6.495(a) 4 .165Likelihood Ratio 5.478 4 .242Linear-by-LinearAssociation.046 1 .831N of Valid Cases 50a 6 cells (60.0%) have expected count less than 5. The minimum expected count is 1.00.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of genders on factors of brand preference of SUV.gender * satisfaction levelH0: There is no impact of gender on factors of satisfaction level of SUV.H1: There is significant impact of gender on satisfaction level of SUV.Crosstabsatisfaction levelTotallow Medium High very highGender Male Count 4 6 13 17 40% withingender10.0% 15.0% 32.5% 42.5% 100.0%female Count 1 4 2 3 10Alliance University Page 52
  53. 53. % withingender10.0% 40.0% 20.0% 30.0% 100.0%Total Count 5 10 15 20 50% withingender10.0% 20.0% 30.0% 40.0% 100.0%Chi-Square TestsValue dfAsymp. Sig. (2-sided)Pearson Chi-Square3.229(a) 3 .358Likelihood Ratio 2.887 3 .409Linear-by-LinearAssociation1.103 1 .294N of Valid Cases 50a 5 cells (62.5%) have expected count less than 5. The minimum expected count is 1.00.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of gender on satisfaction level of SUV.gender * brand loyaltyH0: There is no impact of gender on brand loyalty of SUV.H1: There is significant impact of gender on brand loyalty of SUV.Crosstabbrand loyaltyTotalNo yesGender Male Count 24 16 40% within gender 60.0% 40.0% 100.0%female Count 6 4 10% within gender 60.0% 40.0% 100.0%Total Count 30 20 50% within gender 60.0% 40.0% 100.0%Alliance University Page 53
  54. 54. Chi-Square TestsValue dfAsymp. Sig. (2-sided)Exact Sig.(2-sided)Exact Sig.(1-sided)Pearson Chi-Square .000(b) 1 1.000Continuity Correction(a) .000 1 1.000Likelihood Ratio .000 1 1.000Fishers Exact Test 1.000 .645Linear-by-LinearAssociation.000 1 1.000N of Valid Cases 50a Computed only for a 2x2 tableb 1 cells (25.0%) have expected count less than 5. The minimum expected count is 4.00.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of gender on brand loyalty of SUV.age * preferred SUVH0: There is no impact of age on preference of SUV.H1: There is significant impact of age on preference of SUV.Crosstabpreferred SUVTotalSafari Scorpio Innovaage 20 - 30 yrs. Count 0 6 5 11% within age .0% 54.5% 45.5% 100.0%30 - 40 yrs. Count 5 5 0 10% within age 50.0% 50.0% .0% 100.0%40 - 50 yrs. Count 3 14 0 17% within age 17.6% 82.4% .0% 100.0%50 - 60 yrs. Count 0 5 7 12% within age .0% 41.7% 58.3% 100.0%Total Count 8 30 12 50% within age 16.0% 60.0% 24.0% 100.0%Chi-Square TestsValue DfAsymp. Sig. (2-sided)Pearson Chi-Square 27.727(a) 6 .000Alliance University Page 54
  55. 55. Likelihood Ratio 33.056 6 .000Linear-by-Linear Association .556 1 .456N of Valid Cases 50a 8 cells (66.7%) have expected count less than 5. The minimum expected count is 1.60.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of age on preference of SUV.age * factors of brand preferenceH0: There is no impact of age on factors of brand preference of SUV.H1: There is significant impact of age on factors of brand preference of SUV.Crosstabfactors of brand preferenceTotalPrice Mileagebrandstatusaftersalesservicelowmaintenance costsAge 20 - 30yrs.Count 2 1 2 3 3 11% withinage18.2% 9.1% 18.2% 27.3% 27.3% 100.0%30 - 40yrs.Count 4 1 4 1 0 10% withinage40.0% 10.0% 40.0% 10.0% .0% 100.0%40 - 50yrs.Count 6 4 4 0 3 17% withinage35.3% 23.5% 23.5% .0% 17.6% 100.0%50 - 60yrs.Count 0 3 7 1 1 12% withinage.0% 25.0% 58.3% 8.3% 8.3% 100.0%Total Count 12 9 17 5 7 50% withinage24.0% 18.0% 34.0% 10.0% 14.0% 100.0%Chi-Square TestsAlliance University Page 55
  56. 56. Value dfAsymp. Sig. (2-sided)Pearson Chi-Square 18.251(a) 12 .108Likelihood Ratio 22.593 12 .031Linear-by-Linear Association .308 1 .579N of Valid Cases 50a 19 cells (95.0%) have expected count less than 5. The minimum expected count is 1.00.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of age on factors of brand preference of SUV.age * satisfaction levelH0: There is no impact of age on satisfaction level of SUV.H1: There is significant impact of age on satisfaction level of SUV.Crosstabsatisfaction levelTotalLow medium High very highAge 20 - 30 yrs. Count 1 3 4 3 11% within age 9.1% 27.3% 36.4% 27.3% 100.0%30 - 40 yrs. Count 0 0 3 7 10% within age .0% .0% 30.0% 70.0% 100.0%40 - 50 yrs. Count 3 4 6 4 17% within age 17.6% 23.5% 35.3% 23.5% 100.0%50 - 60 yrs. Count 1 3 2 6 12% within age 8.3% 25.0% 16.7% 50.0% 100.0%Total Count 5 10 15 20 50% within age 10.0% 20.0% 30.0% 40.0% 100.0%Chi-Square TestsValue Df Asymp. Sig. (2-sided)Pearson Chi-Square 9.750(a) 9 .371Likelihood Ratio 12.460 9 .189Linear-by-Linear Association .068 1 .795N of Valid Cases 50a 14 cells (87.5%) have expected count less than 5. The minimum expected count is 1.00.Alliance University Page 56
  57. 57. Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of age on satisfaction level of SUV.age * brand loyaltyH0: There is no impact of age on brand loyalty of SUV.H1: There is significant impact of age on brand loyalty of SUV.Crosstabbrand loyaltyTotalno yesage 20 - 30 yrs. Count 8 3 11% within age 72.7% 27.3% 100.0%30 - 40 yrs. Count 7 3 10% within age 70.0% 30.0% 100.0%40 - 50 yrs. Count 9 8 17% within age 52.9% 47.1% 100.0%50 - 60 yrs. Count 6 6 12% within age 50.0% 50.0% 100.0%Total Count 30 20 50% within age 60.0% 40.0% 100.0%Chi-Square TestsValue dfAsymp. Sig. (2-sided)Pearson Chi-Square 2.012(a) 3 .570Likelihood Ratio 2.049 3 .562Linear-by-Linear Association 1.760 1 .185N of Valid Cases 50a 3 cells (37.5%) have expected count less than 5. The minimum expected count is 4.00.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. ThusAlliance University Page 57
  58. 58. there is significant impact of age on brand loyalty of SUV.occupation * preferred SUVH0: There is no impact of occupation on preference of SUV.H1: There is significant impact of occupation on preference of SUV.Crosstabpreferred SUVTotalSafari Scorpio Innovaoccupation public sector Count 1 5 0 6% withinoccupation16.7% 83.3% .0% 100.0%private sector Count 5 11 6 22% withinoccupation22.7% 50.0% 27.3% 100.0%Entrepreneur Count 2 14 6 22% withinoccupation9.1% 63.6% 27.3% 100.0%Total Count 8 30 12 50% withinoccupation16.0% 60.0% 24.0% 100.0%Chi-Square TestsValue DfAsymp. Sig. (2-sided)Pearson Chi-Square 3.876(a) 4 .423Likelihood Ratio 5.320 4 .256Linear-by-Linear Association 1.506 1 .220N of Valid Cases 50a 5 cells (55.6%) have expected count less than 5. The minimum expected count is .96.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. ThusAlliance University Page 58
  59. 59. there is significant impact of occupation on preference of SUV.occupation * factors of brand preferenceH0: There is no impact of occupation on factors of brand preference of SUV.H1: There is significant impact of occupation on factors of brand preference of SUV.Crosstabfactors of brand preferenceTotalPricemileagebrandstatusaftersalesservicelowmaintenance costsoccupationpublicsectorCount 3 2 0 0 1 6% withinoccupation50.0% 33.3% .0% .0% 16.7% 100.0%privatesectorCount 5 5 5 3 4 22% withinoccupation22.7% 22.7% 22.7% 13.6% 18.2% 100.0%entrepreneurCount 4 2 12 2 2 22% withinoccupation18.2% 9.1% 54.5% 9.1% 9.1% 100.0%Total Count 12 9 17 5 7 50% withinoccupation24.0% 18.0% 34.0% 10.0% 14.0% 100.0%Chi-Square TestsValue df Asymp. Sig. (2-sided)Pearson Chi-Square 11.229(a) 8 .189Likelihood Ratio 13.211 8 .105Linear-by-Linear Association 1.045 1 .307N of Valid Cases 50a 11 cells (73.3%) have expected count less than 5. The minimum expected count is .60.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. ThusAlliance University Page 59
  60. 60. there is significant impact of occupation on factors of brand preference of SUV.occupation * satisfaction levelH0: There is no impact of occupation on satisfaction level of SUV.H1: There is significant impact of occupation on satisfaction level of SUV.Crosstabsatisfaction levelTotallow medium high very highoccupationpublicsectorCount 0 2 1 3 6% withinoccupation.0% 33.3% 16.7% 50.0% 100.0%privatesectorCount 4 2 6 10 22% withinoccupation18.2% 9.1% 27.3% 45.5% 100.0%EntrepreneurCount 1 6 8 7 22% withinoccupation4.5% 27.3% 36.4% 31.8% 100.0%Total Count 5 10 15 20 50% withinoccupation10.0% 20.0% 30.0% 40.0% 100.0%Chi-Square TestsValue df Asymp. Sig. (2-sided)Pearson Chi-Square 6.540(a) 6 .365Likelihood Ratio 7.268 6 .297Linear-by-Linear Association .171 1 .679N of Valid Cases 50a 8 cells (66.7%) have expected count less than 5. The minimum expected count is .60.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of occupation on satisfaction level of SUV.Alliance University Page 60
  61. 61. occupation * brand loyaltyH0: There is no impact of occupation on brand loyalty of SUV.H1: There is significant impact of occupation on brand loyalty of SUV.Crosstabbrand loyaltyTotalno yesoccupation public sector Count 4 2 6% within occupation 66.7% 33.3% 100.0%private sector Count 14 8 22% within occupation 63.6% 36.4% 100.0%entrepreneur Count 12 10 22% within occupation 54.5% 45.5% 100.0%Total Count 30 20 50% within occupation 60.0% 40.0% 100.0%Chi-Square TestsValue dfAsymp. Sig. (2-sided)Pearson Chi-Square .505(a) 2 .777Likelihood Ratio .505 2 .777Linear-by-Linear Association .457 1 .499N of Valid Cases 50a 2 cells (33.3%) have expected count less than 5. The minimum expected count is 2.40.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of occupation on brand loyalty of SUV.Alliance University Page 61
  62. 62. preferred SUV * factors of brand preferenceH0: There is no impact of preferred SUV on factors of brand preference .H1: There is significant impact of preferred SUV on factors of brand preference .Crosstabfactors of brand preferenceTotalprice mileagebrandstatusafter salesservicelowmaintenancecostspreferredSUVSafari Count 5 0 3 0 0 8% within preferredSUV62.5% .0% 37.5% .0% .0% 100.0%Scorpio Count 7 6 9 3 5 30% within preferredSUV23.3% 20.0% 30.0% 10.0% 16.7% 100.0%Innova Count 0 3 5 2 2 12% within preferredSUV.0% 25.0% 41.7% 16.7% 16.7% 100.0%Total Count 12 9 17 5 7 50% within preferredSUV24.0% 18.0% 34.0% 10.0% 14.0% 100.0%Chi-Square TestsValue DfAsymp. Sig. (2-sided)Pearson Chi-Square 12.704(a) 8 .122Likelihood Ratio 17.265 8 .027Linear-by-LinearAssociation5.767 1 .016N of Valid Cases 50a 12 cells (80.0%) have expected count less than 5. The minimum expected count is .80.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of preferred SUV on factors of brand preference.preferred SUV * brand loyaltyAlliance University Page 62
  63. 63. H0: There is no impact of preferred SUV on brand loyalty of SUV.H1: There is significant impact of preferred SUV on brand loyalty of SUV.Crosstabbrand loyaltyTotalNo YespreferredSUVSafari Count 5 3 8% within preferredSUV62.5% 37.5% 100.0%Scorpio Count 20 10 30% within preferredSUV66.7% 33.3% 100.0%Innova Count 5 7 12% within preferredSUV41.7% 58.3% 100.0%Total Count 30 20 50% within preferredSUV60.0% 40.0% 100.0%Chi-Square TestsValue DfAsymp. Sig. (2-sided)Pearson Chi-Square 2.257(a) 2 .324Likelihood Ratio 2.225 2 .329Linear-by-Linear Association 1.195 1 .274N of Valid Cases 50a 3 cells (50.0%) have expected count less than 5. The minimum expected count is 3.20.Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thusthere is significant impact of preferred SUV on brand loyalty of SUV.OnewayANOVAAlliance University Page 63
  64. 64. satisfaction levelSum ofSquares Df Mean Square F Sig.Between Groups 1.342 2 .671 .648 .528Within Groups 48.658 47 1.035Total 50.000 49Post Hoc TestsHomogeneous Subsetssatisfaction levelDuncanpreferred SUV N Subset for alpha = .051 1Innova 12 2.92Scorpio 30 2.93Safari 8 3.38Sig. .297Means for groups in homogeneous subsets are displayed.a Uses Harmonic Mean Sample Size = 12.414.b The group sizes are unequal. The harmonic mean of the group sizes is used. Type I errorlevels are not guaranteed.Personal Cal. Table DOF Ho/Profile Value Value Accepted/RejectedAlliance University Page 64
  65. 65. Age 46.5 18.3 10 Rejectedgender 56.9 11.07 5 RejectedEducation 51.86 18.3 10 RejectedOccupation 66.15 24.9 15 RejectedThis clearly depicts that Ho is rejected and concluded that Personal factors like age,education qualification, gender, occupation and income status have significantinfluence over the factors influencing brand preference.FINDINGSAlliance University Page 65
  66. 66. • It is found that sixty percent people uses Mahindra Scorpio in SUV segment. Among allrespondents only forty percent people are willing to change the brand. People wants theinteriors of Scorpio to be improved.• It is found that brand is the most important factor while price is the second mostimportant factor while deciding in buying an SUV.• It is found that seventy percent of the respondents are satisfied with the car which theyare using.• Respondents between the age group 25-45 are the most consumers of SUV and there is asignificant association between age and brand preference.• It is found that personal factors like age , gender, educational qualification, occupation havesignificant impact on consumer buying behavior towards Scorpio .• It is found that people are factors of brand preference like price ,mileage ,brand status ,mantainence cost , after sales service plays an important role in selecting the brand.Alliance University Page 66
  67. 67. CHAPTER -4RECOMMENDATIONSAlliance University Page 67
  68. 68. RECOMMENDATIONS1. Indians are conscious about the price, fuel efficiency and mantainence cost . Whoever isselling low-priced, fuel-efficient SUV with latest technology will succeed and they arelikely to see large volumes of sales. So Mahindra should try to improve Scorpio withadvanced technology so that its mantainence cost is low and fuel efficiency is high.2. Relationship marketing strategy must be adopted to the customers owing Scorpio. Themarketers must try to build a relationship with the customer so that they feel special andin turn becomes loyal to the brand. Brand loyalty programmes like owners groupmagazine should be published containing the names of the new owners by welcomingthem to join the group. In this way they can create a strong relationship with thecustomers.3. Customers wants comforts and luxury hence Scorpio must improve its interiors with rearend cameras, GPS navigation etc.Alliance University Page 68
  69. 69. CHAPTER-5CONCLUSIONCONCLUSIONAlliance University Page 69
  70. 70. This report tries to present an idea about consumer buying preference of Mahindra Scorpio byexamining age, qualification, gender, profession. In trying to create strong brand loyalty,company should be interested in assessing the degree of customer brand preference. The brandstrength depends on the perception of customers. Satisfied and loyal customers indicate positiveperceptions of brand. In time when competition is getting powerful, it is imperative for the firmto seriously evaluate factors that are not only important in creating strong brand equity but alsoassist them in achieving customer satisfaction and loyalty. The results of the study shows thatbrand preference and brand loyalty play an important role in creating consumer buyingbehavior.The Automobile industry has strongly striven towards globalization, which increasingly affectsthe policy at local, regional and global levels. The present study made a systematic effort onstudying consumer brand preference towards Scorpio by analyzing the factors that influencebrand choice of the customers and revealed the impact of brand preference dimensions oncustomer satisfaction. There is cut throat competitions in the market on price front and so theyhave to find out better quality and low cost product.The characteristic of this specific industry is that the marketing defines, creates and forms thegoods and their target groups, possibly more than any other industry in the world. Ability tomeet changing technology, customer’s needs and styling and shortening product life cycle arethe challenges that passenger car companies will have to face.All said and done, this industry will continue to grow with time.Alliance University Page 70
  72. 72. My 12 weeks in Mahindra & Mahindra Ltd. was a great Learning Experience for me, it gaveme first time Experience to Work in a MNC. The Project allocated to me was best thing that canhappen to any trainee because it covered almost every aspect of learning which I have acquiredin this last one year. It included Business Communication, Marketing Skills, Presentation Skills,Understanding of importance of brand equity. I learned a lot about the Organization Structureand the way Mahindra & Mahindra functions, how they analyze the market and set targetsdepending on the sales data, how the Organization communicates with its clients and theCustomers, how different marketing functions are Organized and finally carried out.It was really wonderful to learn all those things, my sincere thanks to my entire senior’sand colleagues without their help it wouldn’t have been possible. Now, I am much moreprepared to jump in the corporate world, with a better understanding of it. Here everything hasfar more reaching consequences and we worked under tight deadlines. Every job I did was givento me with a time line attached to it, which pointed out still I have to learn when it comes to timemanagement. But I am satisfied with all my work given to me, since after 12 weeks I know Ihave added some value to the company.Alliance University Page 72
  73. 73. ANNEXUREANNEXUREAlliance University Page 73
  74. 74. QUESTIONNAIRENAME : PROFESSION:AGE : CONTACT NO:QUALIFICATION: GENDER:1. Among the following, which SUV you own?a) Mahindra Scorpiob) Innovac) Tata Safari2. Are you aware of Mahindra & Mahindra .Yes No3. What comes to your mind when you see the following symbols?4. What makes Scorpio important ?.Alliance University Page 74
  75. 75. Please comment:Alliance University Page 75
  76. 76. 5. Please select your choice6. I will buy Mahindra Scorpio because of itsi. Priceii. MileageAlliance University Page 761(stronglydisagree)2(disagree)3(Neitheragreenordisagree)4(Agree)5(Stronglyagree)Mantainence cost of Scorpiois very lessThe looks and interior ofscorpio is goodScorpio is very comfortableand luxuriousCustomer satisfaction ofScorpio is very highI will purchase ScorpioScorpio possess advancedtechnology.I am highly satisfied withScorpio.Accessorries of Scorpio areeasily availableCompany should continueproducing Scorpio
  77. 77. iii. Brand statusiv. Low mantainence costv. After sales service7 .What do you think of Mahindra Scorpio against its competitors Tata safari and Innova?please comment:8 .Is there any aspects on which you believe Scorpio could improve?Please comment:9 .How do you compare Mahindra with other companies?Please comment:Alliance University Page 77
  78. 78. 10. .Would you purchase Scorpio?Please comment:Why or why not?Alliance University Page 78
  79. 79. BIBLIOGRAPHYAlliance University Page 79
  80. 80. BIBLIOGRAPHYInternet linkswww.mahindra.com BooksKotler, P., K, K., K, A., & J, M. (1972). Marketing management. (13 ed.). Pearson EducationIndia., Pg.115-137Keller, K.(2008) Strategic brand management. (3 ed.). Prentice-Hall Education India. Pg.345-368G, S. L. (2010). Consumer behavior. Pearson Education India.Pg-394Abdul. M, Abdul.B. A and Edwin G. M (2006),consumer buying behavior of two wheelers intirunelveli city, Tamil Nadu .Indian journal of marketing,volume No. 04Ambler T and Styles (1996), Brand development versus product development, Journal ofproduct and brand management, 6(4):223-234.Alliance University Page 80