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A study of consumer perception of car market & buying behavior



A study of consumer perception of car market & buying behavior

A study of consumer perception of car market & buying behavior



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A study of consumer perception of car market & buying behavior A study of consumer perception of car market & buying behavior Document Transcript

  • Projectsformba.blogspot.com A study of Consumer Perception of Car Market and Buying Behavior A MINI PROJECT REPORT Submitted by (Reg.No: ) In partial fulfillment of the requirement for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION Under the guidance of DEPARTMENT OF MANAGEMENT STUDIES ADHIYAMAAN COLLEGE OF ENGINEERING, HOSUR ANNA UNIVERSITY – COIMBATOREProjectsformba.blogspot.com
  • Projectsformba.blogspot.com OCT 2010 BONAFIDE CERTIFICATEThis is to certify that the project report entitled “A study of consumerperception of Car market & buying behavior” submitted by………………. is a Bonafide record of the mini project done by him duringthe academic year 2010-11,under my guidance and supervision in partialfulfillment of DEGREE OF MASTER OF BUSINESSADMINISTRATION.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Acknowledgements I proudly utilize this privilege to express my hearty thanks to our PRINCIPAL………………………, Adhiyamaan College of Engineering, Hosur,for giving meadmission in this prestigious institution. My special words of thanks to……………………….., DIRECTOR of Departement of Management Studies. Iwould like to express my sincere gratitude to our HEAD OF THE DEPARTMENT…………………………….. for his guidance and support and my faculty guide…………………………., who helped me a lot in completing my mini project theirconstant encouragement and suggestion.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Declaration I hereby declare that this project report entitled “A study of consumer perceptionof Car market &buying behavior” submitted to Department of Managementstudies, ADHIYAMAAN COLLEGE OFFENGINEERING, HOSUR in partialfulfillment of the requirement for the award of the Degree of MASTER OF BUSINESSADMINISTRATION is a original work done by me during the period of my study at thecollege under the supervision and guidance of ……………………….. Faculty,Department of Management Studies, Adhiyamaan College of Engineering, Hosur.PLACE:DATE:Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Table of Content 1 Executive Summary 01 2 Introduction. 03 3 Overview of the Auto segment 09 4 Review of Literature 15 5 Objective of the study 24 6 Scope of the study 25 7 Research methodology. 26 8 Limitation of the study 33 9 Finding and Analysis 34 Cross Tabulation 10 Conclusion 53 11 Annexure 55 Executive SummaryProjectsformba.blogspot.com
  • Projectsformba.blogspot.comThe automobile industry today is the most lucrative industry. Due to the increase indisposable income in both rural and urban sector and easy finance being provided by allthe financial institutes, the passenger car sales have increased at the rate of 38% perannum in June 2005-06 over the corresponding period in the pervious year. Furthercompetition is heating up in the sector with a host of new players coming in and otherlike Porsche, Bentley, Audi, and BMW all set to venture in the Indian markets. Onefactor that could help the companies in the marketing of their product is by knowing andcreating a personality for their brands.This report attempts to answer some of the questions regarding brand personality ofselected cars in India by conducting the market research. This report is categorized intoparts, deals with introduction to brand personality, companies selected, product and theindustry.The automobile industry today is the most lucrative industry. Due to the increase indisposable income in both rural and urban sector and easy finance being provided by allthe financial institutes, the passenger car sales have increased at the rate of 25% perannum in June 2005-06 over the corresponding period in the previous year. Furthercompetition is heating up in the sector with a host of new players coming in and otherslike Porches, Bentley, Audi, and BMW all set to venture in Indian markets. One factorthat could help the companies in the marketing of their products is buying Behavior ofthe consumers. The Buying Behavior of the customers can be studied by knowing theirperceptions about the cars in the market and about the possible entrants in the market.One such technique is by knowing and creating a personality for the brands.This personality sketching will help in knowing what a customer (or a potentialcustomer) thinks about a given brand of car and what are the possible factors guiding apossible purchase. Similarly, the idea of measuring the customer satisfaction will servethe same purpose of determining the customer perception. Thus, by measuring the”willingness of existing users of a car to recommend it to others” will help the carmanufacturers to chalk out the entire Customer Buying Behavior.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com The reports shall attempt to answer some of the questions regarding brandpersonality of selected cars in India by conducting a market research. The marketresearch will be helpful for the new car entrant companies in India to find out the possiblegaps between the customer expectations and the present market offerings. This way thesecompanies will be able to find their share in the ever-expanding Indian market pie.The research will track the customer satisfaction in the following two layers: • Product related Parameters • Dealers related parametersThe customer satisfaction index will be calculated for the car brands taken intoconsideration.It will be mainly a primary research and the information will be gathered from bothprimary and secondary research. The study will analyze the applicability of existingresearch concepts, theories, and tools for evaluating consumer satisfaction. INTRODUCTIONProjectsformba.blogspot.com
  • Projectsformba.blogspot.comIt is true fact that if you are satisfied you recommended to others. Word of mouth andcustomer satisfaction play a very important role in determining market perception aboutan automobile. It is the market perception that determines the success of a company andso it is very important for the car manufacturers to measure the “willingness of existingusers of a product to recommend it to others”. The same is a lot of interest to customersas well for it helps them make the purchase decision.A car is one of the most significant purchases that an Indian household makes and thisproject addresses the most important question that perplexes car manufacturers:“What makes the perfect car that influence will willfully purchase?”The project highlights the factors that influence the buying decision of a consumer.The factor under consideration would be:  Price  Income of the consumer  Features in the car  Safety standard  Warranty scheme  Finance facilityIs an Indian consumer ready for more? Which is the driving motive behind the effectivedemand of the car? How the coming of new models like swift does is going to effect thebuying decision of consumer and especially the Tata 1 lakh car.In other words, from the spread of choices offered by various manufacturers undervarious segments, of which one the customer will finally turn the ignition on and drive.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comCustomer satisfaction index: some of the most advance thinking in the business worldrecognizes that customer relationships are best treated as assets, and that methodicalanalysis of these relationships can provide a road map for improving them“If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin(1824-1907)Clause 8.2.1 in ISO9000: 2000 states:“As one of the measurements of the performance of the quality management system, theorganizations shall monitor information relating to customer perception as to whether theorganization has met customer requirements. The method for obtaining and using thisinformation shall be determined”The requirement has been there in the QS9000 standard clause 4.1.6 which says:“… Trends in customer satisfaction and key indicators of customer dissatisfaction shallbe documented and supported by objective information. These trends shall be comparedto those of competitors, or appropriate benchmarks, and reviewed by seniormanagement.”There is obviously a strong link between customer satisfaction and customer retention.Customer’s perception of service and quality of product will determine the success of theproduct or service in the market.With better understanding of customer’s perceptions, companies can determine theactions required to meet the customer’s needs. They can identify their own strengths andweaknesses, where they stand in comparison to their competitors, chart out the pathfuture progress and improvement. Customer satisfaction measurement helps to promotean increased focus on customer outcomes and stimulate improvements in the workpractices and processes used within the company.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comCustomer expectations are the customer-defined attributes of your product or service. Wecannot create satisfaction just by meeting customer’s requirements fully because thesehave to be met in any case. However falling short is certain to create dissatisfaction.Major attributes of customer satisfaction can be summarized as:  Product quality  Product packaging  Keeping delivery commitments  Price  Responsiveness and ability to resolve complaints and reject reports  Overall communication, accessibility and attitudes Values + Benefits - Features - AttributesProjectsformba.blogspot.com
  • Projectsformba.blogspot.comWe cannot begin to address the customer satisfaction issue we define the parameters andmeasures clearly.The customer satisfaction index represents the overall satisfaction level of that customeras one number, usually as a percentageThe buying process involves the following steps: Problem Recognition Information search Evaluation DecisionProjectsformba.blogspot.com Dissatisfaction = Satisfaction = Brand Rejection Post Purchase Buy Brand Acceptance Dissonance
  • Projectsformba.blogspot.com“The fact that word of mouth sales are a big deal in this industry has also helped. Industryplayers and market surveys reveal that 20-30 percent of sales are through word ofmouth”.For the purpose of the project has undergone through  Surveying the relevant consumer base through exhaustive questionnaire.  Understand the elements underplaying in each segment  Deducing A analytical overview through different statistical methods Product Quality Service QualityRecommendation comes from satisfaction and satisfaction comes fromProjectsformba.blogspot.com Relationship Quality
  • Projectsformba.blogspot.com OVERVIEW OF THE AUTO SEGMENTIndians have emerged as avid car enthusiasts sporting their prized possessions as statussymbols and speed machines. Foreign car companies have discovered the Indianconsumer as well as the R & D potential in the Indian technical fraternity and are settingup manufacturing plants right and left across the country at lower costs. The Indianautomobile industry is currently experiencing an unprecedented boom in demand for alltypes of vehicles. This boom has been triggered primarily by two factors:(1) increase in disposable incomes and standards of living of middle class Indian familiesestimated to be as many as four million in number; andProjectsformba.blogspot.com
  • Projectsformba.blogspot.com(2) The Indian governments liberalization measures such as relaxation of the foreignexchange and equity regulations, reduction of tariffs on imports, and bankingliberalization that has fueled financing-driven purchases. Industry observers predict that passenger vehicle sales will triple in five yearsto about one million, and as the market grows and customers purchasing abilities rise,there will be greater demand for higher-end models which currently constitute only a tinyfraction of the market. These trends have encouraged many multinational automakersfrom Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventureswith Indian firms.India is increasingly becoming a global automotive hub both for the vehicles andcomponent industry. India is fast integrating itself into the world economy and open tointernational automotive companies, who are increasingly investing in India.The Indian automotive and component industry is looking to increase the quality ofproduction from existing levels, to develop new products and to increase exports. In thelong run India is well set to become a key market for automotive and componentmanufacturers in terms of local demand and as a base for export.Additionally, companies such as GM, Daimler Chrysler, Toyota, Delphi andMICO/Bosch are utilizing India’s well developed IT / software capabilities and have setup R&D hubs here for their global operationsIndustry Size The domestic Indian passenger car market (including utility vehicles) totaled 900,000 units (with a CAGR of 10 per cent over the past 4 years) while the exports were 130,000 million units (with a registered CAGR of 68 per cent over the past 4 years) during financial year 2004Projectsformba.blogspot.com
  • Projectsformba.blogspot.com The Indian two-wheeler Industry is one of the largest in the world, and is expected to maintain robust growth in the future At the back of this phenomenal automotive growth is the success of the Indian auto component industry. Presently a US$ 6.7 billion industry, it is expected to almost treble in less than eight years time to US$ 17 billion by 2012 India offers a distinct technological and cost-competitive advantage, which global Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both manufacturing and research facilities. The passenger car market is projected to grow at a CAGR of 12.3 per cent over the next few years. Growth in the mid-size and premium car segments is expected to outpace the overall market growth.Indian Automobile IndustryProjectsformba.blogspot.com
  • Projectsformba.blogspot.comAutomobile 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 theyare investing vigorously in infrastructure, design and development, and marketing.Automobile industry in India is today poised for the big leap. • India is the 2nd largest two wheeler manufacturer in the world • Second largest tractor manufacturer in the world • 5th largest commercial manufacturer in the world • 3rd largest car market in Asia, surpassing China in the processAutomobile industry Contributes 17% of the total indirect taxes collected by theexchequer & is a driver of product and process technologies, and has become a excellentmanufacturing base for global players, because of its • high machine tool capabilities • Extremely capable component industry • Most of the raw material locally producedProjectsformba.blogspot.com
  • Projectsformba.blogspot.com • Low cost manufacturing base • Highly skilled manpower • Special capability in supplying large volumesProjectsformba.blogspot.com
  • Projectsformba.blogspot.comDomestic and Foreign Vehicle Manufacturers:Passenger VehiclesThe main domestic manufacturers of passenger vehicles are as follows: • Maruti Udyog • Tata / Telco • Mahindra / Mahindra • Hindustan MotorsForeign competitors manufacturing locally including Hyundai, Ford, General Motors,Honda, and Toyota.Car demand has seen a turnaround since mid 2001 thanks to heavy discounts andcheaper finance. A large number of new models, both locally assembled andimported, have also revitalized the market.In terms of volumes: • The A/B segments are where India’s strength and future lies. The A/B segment accounts for over 65% of the total passenger vehicles produced. Competition in this segment is stiff with Maruti the market leader with around 55% market share. New models from Telco (Indica), Hyundai (Santro) and Fiat (Palio) however are eroding Maruti’s long standing dominance in this segment. • The mid / luxury range is developing with the introduction of Ford (Ikon), Hyundai (Accent/Sonata) and Skoda (Octavia), although the volumes are not significant. • The UV segment remains sluggish with growth at just over 1%. The clear market leader, Mahindra (44% market share) posted increased sales of 9% in the first 3 quarters of 2002/03. Toyota and Telco domestic UV business remains flat.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comCommercial VehiclesThe main Indian companies in the Commercial Vehicle segment are: • TATA Engineering and Locomotive Company (TELCO) • Ashok Leyland • Bajaj Tempo Ltd • Eicher Motors Ltd • Swaraj MazdaThere is only one international company currently manufacturing CVs in India, Volvobut again volumes are not large. Other global players are active, although in partnershipwith one of the domestic manufacturers E.g.:- IVECO (manufacturing their range oftrucks in association with Ashok Leyland.There has been a significant turn around in this segment over the last 18 months withover 30% growth being seen in terms of both production and sales.This sector has received a huge boost with India’s massive demand from theinfrastructure sector (particularly roads), cyclical fleet replacement by fleet owners andan upturn in the cement and steel sectors.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Automobile Manufacturers Market Share Passenger Cars LCV 0.604 Mn 0.083 Mn Hyundai Bajaj 18% Tem po Eicher HM Tata Ashok 7% 2% 8% M &M 13% Leyland 30% Fiat 1% 4% Ford 3% HMMaruti 2% 55% Honda Tata Sw araj Toyota Mazda GM 2% 44% 0.3% Daimler 8% Chrysler Mitsubishi Skoda 1% 0.2% 1% 1% • Maruti (JV of Suzuki), leading the market, • Tata and M&M are the key players a) Followed by Hyundai and Tata, together hold close to 75% of market b) Daewoo stopped production, mainly due to financial issues 2 years back Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Review of LiteratureBrand Personalitybrand is “a set of expectation and association evoked from a company or product. Abrand is how your key constituents- customers, employees, shareholders etc. experiencewhat you do.” Some brands are of such great A importance to people, that we speak ofthem as a part of one’s life and identity, being used to express one. Some would say thatthese brands have their own personality, the brand personality, which can be defined as“the set of human characteristics associated with a given brand”. Thus, it includes suchcharacteristics as gender, age and socioeconomic class, as well as such classic humanpersonality is both distinctive and enduring.Based on the premise that brand can have the personalities in much the same way ashumans, brand personality describe brands in terms of human characteristics. Brandpersonality is seen as valuable factor in increasing brand engagement and brandattachment, in much the same way as people relate and bid to other people. Much of thework in the area of brand personality is based on translated theories of human personalityand using similar measures of personality attributes and factors. Brand personality refersto the set of human characteristics we associated with the brand. A common way ofdetermining this is to reply on the metaphor: “If the brand was a person, what wouldhe/she be like?” we then list and group the traits to describe the brand as, for example:caring, approachable and trustworthy. However, there is a lot more we can do.Because many people interact with brands as though they were other people, it isimportant to understand what a brand personality consists of, and how its characteristicscan be used to affect the relationship between the brand and its user. Knowing andunderstanding the brand personality gives a good insight into this relationship, and intopeoples’ attitudes towards the brand, and is also as important guide to communicating thebrand.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comThe Creation of Brand PersonalityBrand personality traits are formed and influenced by any direct or indirect contact thatthe consumer has with a brand. A brand, unlike a person, cannot think, feel or act. Abrand has no objective existence at all; it is simply a collection of perception on the mindof the consumer. Consumers accept the marketing actions to humanize brands. Oneexplanation fort this can be found in the theories of animism, which suggest that thereexists need by people to anthropomorphize objects in order to facilitate interaction withthe nonmaterial world. Anthropomorphize occurs when human qualities are attributed tonon human objects, e.g. brands. Consumers easily assign personality quality to inanimateobjects like brands in thinking about the brands as if they are human characters.In a direct way, personality traits are associated with a brand by the people associated tothat brand. One direct way to form and influence brand personality is user imaginary.User imaginary is defined as the set of human characteristics associated with the typicalor stereotype user of the brand. Associations with the company employees or CEO andthe brand’s product endorsers are also direct ways by which brand personality traits areformed and influenced. The personality traits that of the people associated with a brandare transferred directly to the brand. The theories of animism describe another processmechanism that directly explains the specific ways in which the vitality of the brand canbe realized (Fournier, 2004). Spokespersons that are used in advertising can havepersonalities that fit those of the brand they advertise. Over time, the personalities of thespokesperson are transmitted to the brand. The brand-person associations can also have amore personal nature. Brands can be associated with person who use or used thatparticular brand, for example a close friend or a family member. Also, brands received asgifts can also be associated with the person from whom the gift was received. Theseperson associations serve to animate the brand as a vital in the minds of the consumers.Obviously, this aspect is much less under the control of the marketers.Indirectly, the brand personality is created by all the elements of the marketing mix.Betra, Lehman and Singh suggest that the personality of a brand is created over time, byProjectsformba.blogspot.com
  • Projectsformba.blogspot.comthe entire marketing mix of the brand - “its price (high or low, odd or even), retail storelocation (imaginary associations), product formulation (ingredients, benefits), andproduct form (solid/liquid. Etc.), packaging details (color, size, material, shape), symbol;used an all phases of the brand communication, sales promotion, and media advertising”.Another form of animism explains how brand personality is created in a more indirectway. This form of animism involves complete anthropomorphization of the brand objectitself. Human qualities of emotionality and thought are transferred to the brand. This isachieved with the help of the marketing actions, especially advertising. For example, thebrand character of M&M in the M&M commercials has the capacity to laugh and joke.One of the advantage of the brand personality is that based on their distinctivepersonalities, consumers are able to differentiate between brands. Another advantage isthat the consumer can interpret the brand’s image in such a way that it is personally moremeaningful. Brand personality encourages more active processing on the part of theconsumer. Thus, the consumer put more efforts in creating and using the brandpersonality. A further advantage of brand personality is that life is given to a brand. Byvitalizing a brand, another perspective of brand personality can be examined, namely therole of a brand as relationship partner in a consumer-brand relationship. Next we willconcentrate on these consumer-brand relationships.Whether the brand is a product or a company, the company has to decide whatpersonality traits the brand is to have. There are various ways of creating brandpersonality. One way is to match the brand personality as closely as possible to that ofconsumers or to the personality that they like. The process will be  Define the target audience  Find out what they need, want and like  Build a consumer personality profile  Create the product personality to match that profileProjectsformba.blogspot.com
  • Projectsformba.blogspot.comThis type of approach is favored by companies such as Levi Strauss, who research theirtarget audience fastidiously. For Levis the results is a master brand personality that is:  Original  Masculine  Sexy  Youthful  Rebellious  Individual  Free  AmericanA related byproduct brand personality (for a specific customer group) such as Levi’s 501jeans is:  Romantic  Sexually attractive  Rebellious physically prowess  Resourceful  IndependentBoth profile appeal mostly to the emotional side of the people’s minds- to their feelingsand sensory function. This profiling approach aims to reinforce the self-concept of theconsumers and their aspirations. The approach is ideal for brands that adopt a market-niche strategy, and can be extremely successful if a market segment has a degree ofglobal homogeneity, as is the case with Levis.Non product related brand personalities drivers  User imaginary – user imaginary can be based on either typical users (people you see using the brand) or idealized users (as portrayed in advertising and else were). User imaginary can be powerful driver of brand personality, in partProjectsformba.blogspot.com
  • Projectsformba.blogspot.com because the user is already a person and thus the difficulty of conceptualizing the brand personality is reduced. For example Charlie has a feminine, strongly independent brand personality driven by it user imaginary. The upscale personality of Mercedes and the sexy, sophisticated personality of Calvin Klein are similarly influenced by user imaginary.  Sponsorship – activities such as events sponsored by the brand will influence its personality. Swatch, for example, reinforces its offbeat, youthful personality will targeted sponsorships that have included the Freestyle Ski World Cup in Breckenridge, the first International  Age – how long a brand has been on the market can affect its personality. Thus new entrants such as Apple, MCI, and Saturn tend to have younger brand personalities than brand such as IBM, AT&T, and Chevrolets, and it as all too common far a major dominate brand to see as strongly and old fashioned, a brand for older people.  Symbol – a symbol can be powerful influence on brand personality because it can be controlled and can have extremely strong associations. Apples bitten apple, the Marlboro cowboy, the Michelin mans all helps to create and reinforce a personality for their brands.Brand personality of carsAre you what you drive? That is what are companies seem to be asking and in the samebreath trying to convince you about. In other words, are you the Hyundai accent ownerwho commands immediate respect wherever she goes (including fro the potential father-in-law) or are you the suave executive from the Chevrolet ad who is ever ready to share amoment with loved one? With a plethora of new models in the market, and genericbenefits (such as space or fuel efficiency) of a particular car segment hardly aProjectsformba.blogspot.com
  • Projectsformba.blogspot.comdistinguishing factor between car models, marketer are increasingly differentiating on theemotional pay-off a particular car model/brand provides to the customer. This, of course,varies from the segment to segment and also on how long a particular model has been inthe market.For instance, while advertising for entry level or smaller cars tends to focus more on therational or functional benefits of the vehicles, the differentiations is increasingly on theemotional benefits when it comes to high end cars.“Generally, it has been seen as one move up the value chain, the differentiation is moreon the emotional pay-off. People buy car as an extension of their personality rather thanjust features. A car, in India, helps build up show off, social esteem value. Theadvertising would also vary according to the segment which one is targeting,” he says.For instance, the Chevrolet Optra ad (which depicts a young husband driving his wife tosee the moon on the occasion of Karvachauth) shows an Optra consumer as someone whobelieves in family values and indulging loves ones.“We find that typically profile of an Optra consumer is someone who is in the age groupof 35-45years and has a chauffer. He buys a car not only for himself but also for thefamily and tries to make up, for not being able to spend enough time, by indulging loveones,” points out dutta. The positioning goes well with the companies catch lines of “fora special journey called life”.The importance of brand image has risen sharply in the last few years. At the segmentlevel, the increase in importance is greater for the mid-size cars, indicating the relevanceof brand among the more expensive market segments. The manufacturer need to focusmore o how consumers perceive them as offering exciting cars and being committedtowards them. Contemporariness of model has a big impact on purchase decision. Theperception of the car in terms of its performance and design, quality, sales, after sales,cost of ownership, apart from brand image, all impact upon the purchase decision.”Projectsformba.blogspot.com
  • Projectsformba.blogspot.comAccording to Bhatia, as long as advertising for cars is strongly differentiated and sharplypositions the model and at the same time satisfies a define need segment, it shall have thecapability to break the clutter and creates a unique and compelling reason for consumersto purchase. “One good example of this is Ford Ikon- the josh machine made atremendous impact on consumers in offering to satisfy a clear need. You can see somemore of this with a recently launched premium hatch back as well”.Interestingly, the strategy marketer follow changes a bit when it comes to addressing thesmaller car category with the rational benefits of a brand tending to be the focal point ofthe campaign. “We have found that typically a buyer for a smaller car (sub Rs 4 lac)looks for aspects such as reliability and fuel efficiency. This changes as we move upsince in case the consumer has been with the category for a longer time and hence it isimportant t to talk of an emotional pay off.A case in point is the Maruti 800 campaign in which the kids who is playing with a toyMaruti 800 exclaims to his dad (when asked how long will he keep on running the car),“papa ki Kara, petrol khatam hi nahin Honda.” The ad cleverly conveys that the car justkeeps going on and on. It ends with the voiceover telling us that Maruti Suzuki is mostfuel-efficient car.However in the small car segment, the rational benefits magic is not always applicable.Take the case of Hyundai Santro, the advertising of which has evolved over the yearsfrom initially conveying mainly the functional benefits of the model to connecting withthe consumer on an emotional level now. “When we launched the Santro, we started withthe positioning if the car being a complete family car which was completely rationalpositioning. But then two things happened- the product found acceptance in the marketand the competition came up with similar product in the market.Brand image is not driven by good advertising alone but is significantly impacted uponby the cars performance and design, quality, and the cost of ownership. Among the three,product quality has the highest correlation with brand image. Small car buyer seeksProjectsformba.blogspot.com
  • Projectsformba.blogspot.comcapability in advertising, and fuel efficiency is relatively more important to them.Technology, innovation, and good influence premium mid-size buyers. One reality for usin India is that the market is extremely price/value conscious. While making purchasesbased on above, there is rational side, which does have an impact on the decision on aparticular make and model of car. Be it rational or an emotional decision, consumerswould have to think as a bevy of new models flood the Indian market.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Objectives of StudyThe research objective is a statement, in as precise terminology as possible, of whatinformation is needed. The research objective should be framed so that obtaining theinformation will ensure that the research purpose is satisfied.Research objective have three components.Research question –The research question specifies the information the decision making needs. Theresponsibility of the researcher is to make the researcher question as specific and preciseas possible. The researcher question asks what specific information is required to achievethe research purpose, or answer the research problem. If the research questions areanswered by the research, then the information should aid the decision maker.Development of hypothesis –A hypothesis is a possible answer to a question. Development of hypotheses impliesgenerating basically alternative answers to research questions. The research determineswhich of these alternative answers is correct. It is not always possible to develophypotheses, but efforts should be made.Scope or boundaries of the research-Defining the scope of the research or the research boundaries ensures the desiredprecision or accuracy of the result.The researcher’s responsibility is to restate the initial variables associated with thedecision problem, that is convert the research problem, in the form of one or more keyquestion formats- • How • What • Where • When • WhyObjectives of the ResearchProjectsformba.blogspot.com
  • Projectsformba.blogspot.comThe research objectives for the project undertaken can be defined as follows: • To determine the demographic variables of the customers of different brands of cars. • Examine the customer perception about the cars. • To judge the satisfaction level of car owners of different brands. • The research tracks responses at following two layers 1. Product related parameters 2. Dealer related parameters • To analyze the psychographic variables of the customers of different brand of the cars. Scope of the studyIt is aimed to study the car market and buying behavior of the customer. The project isanalyzed the demographic, psychographic and buying characteristics of the customers inbuying the car. It includes the detailed study of customers focusing on the variousparameters that lead to identifying and understanding the perception of the customer inbuying the car brands.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Research MethodologyA research process consists of stages or steps that guide the project from its conceptionthrough the final analysis, recommendations and ultimate actions. The research processprovides a systematic, planned approach to the research project and ensures that allaspects of the research project are consistent with each other.Research studies evolve through a series of steps, each representing the answer to a keyquestion. Research Project StepsProjectsformba.blogspot.com
  • Projectsformba.blogspot.com INTRODUCTIONThis chapter aims to understand the research methodology establishing a framework ofevaluation and revaluation of primary and secondary research. The techniques andconcepts used during primary research in order to arrive at findings; which are also dealtwith and lead to a logical deduction towards the analysis and results.RESEARCH DESIGNI propose to first conduct a intensive secondary research to understand the full impact andimplication of the industry, to review and critique the industry norms and reports, onwhich certain issues shall be selected, which I feel remain unanswered or liable tochange, this shall be further taken up in the next stage of exploratory research. This stageshall help me to restrict and select only the important question and issue, which inhabitgrowth and segmentation in the industry.The various tasks that I have undertaken in the research design process are :  Defining the information need  Design the exploratory, descriptive and causal research.RESEARCH PROCESSThe research process has four distinct yet interrelated steps for research analysisIt has a logical and hierarchical ordering:  Determination of information research problem.  Development of appropriate research design.  Execution of research design.  Communication of results.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comEach step is viewed as a separate process that includes a combination of task , step andspecific procedure. The steps undertake are logical, objective, systematic, reliable, valid,impersonal and ongoing.EXPLORATORY RESEARCHThe method I used for exploratory research was  Primary Data  Secondary dataPRIMARY DATANew data gathered to help solve the problem at hand. As compared to secondary datawhich is previously gathered data. An example is information gathered by aquestionnaire. Qualitative or quantitative data that are newly collected in the course ofresearch, Consists of original information that comes from people and includesinformation gathered from surveys, focus groups, independent observations and testresults. experimentation.Primary data is basically collected by getting questionnaire filled by therespondents.SECONDARY DATAInformation that already exists somewhere, having been collected for another purpose.Sources include census reports, trade publications, and subscription services. Data thathave already been collected and published for another research project (other than the oneat hand). There are two types of secondary data: internal and external secondary dataProjectsformba.blogspot.com
  • Projectsformba.blogspot.comDESCRIPTIVE RESEARCHSTEPS in the descriptive research:  Statement of the problem  Identification of information needed to solve the problem  Selection or development of instruments for gathering the information  Identification of target population and determination of sampling Plan.  Design of procedure for information collection  Collection of information  Analysis of information  Generalizations and/or predictionsDETERMINATION THE SAMPLE PLAN AND SAMPLE SIZETARGET POPULATIONIt is a description of the characteristics of that group of people from whom a course isintended. It attempts to describe them as they are rather than as the describer would likethem to be. Also called the audience the audience to be served by our project includeskey demographic information (i.e.; age, sex etc.).The specific population intended asbeneficiaries of a program. This will be either all or a subset of potential users, such asadolescents, women, rural residents, or the residents of a particular geographic area.Topic areas: Governance, Accountability and Evaluation, Operations Management andLeadership. A population to be reached through some action or intervention; may refer togroups with specific demographic or geographic characteristics.I have selected the sample trough Simple random SamplingProjectsformba.blogspot.com
  • Projectsformba.blogspot.comSAMPLE SIZE:This involves figuring out how many samples one need.The numbers of samples you need are affected by the following factors: •Project goals •How you plan to analyze your data •How variable your data are or are likely to be •How precisely you want to measure change or trend •The number of years over which you want to detect a trend •How many times a year you will sample each point •How much money and manpower you haveSAMPLE SIZEI have targeted 100 people in the age group above 21 years for the purpose of theresearch. The sample size is influenced by the target population. The target populationrepresents the Delhi regions. . The people were from different professional backgrounds.The details of our sample are explained in chapter named primary research where thedivisions are explained in demographics section.SAMPLING TECHNIQUESimple random sampling technique has been used to select the sampleA simple random sample is a group of subjects (a sample) chosen from a larger group (apopulationProjectsformba.blogspot.com
  • Projectsformba.blogspot.comERRORS IN THE STUDYInterviewer errorThere is interviewer bias in the questionnaire method. Open-ended questions can bebiased by the interviewer’s views or probing, as interviewers are guiding the respondentwhile the questionnaire is being filled out. The attitudes the interviewer revels to therespondent during the interview can greatly affect their level of interest and willingnessto answer openly. As interviewers probing and clarifications maximize respondentunderstanding and yield complete answers, these advantages are offset by the problemsof prestige seeking, social desirability and courtesy biases.Questionnaire errorThe questionnaire designing has to careful so that only required data is concisely reveledand there is no redundant data generated. The questions have to be worded carefully sothat the questions are not loaded and does not lead to a bias in the respondents mindRespondent errorThe respondents selected to be interviewed were not always available and willing to cooperate also in most cases the respondents were found to not have the knowledge,opinion, attitudes or facts required additionally uninformed response errors and responsestyles also led to survey error.Sampling errorWe have taken the sample size of 100, which cannot determine the buying behavior ofthe total population. The sample has been drawn from only National Capital Region.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comResearch DesignResearch design is a conceptual structure within which research is conducted. A researchdesign is the detailed blueprint used to guide a research study towards its objective. It is aseries of advanced decision taken together comprising a master plan or a model forconducting the research in consonance with the research objectives. Research design isneeded because it facilitates the smooth sailing of the various research operations,thereby making research as efficient as possible yielding maximum information with theminimum effort, time and money. RESEARCH DESIGN EXPLORATORY CONCLUSIVE RESEARCH RESEARCH DESIGN DESIGN DESCRIPTIVE CAUSAL RESEARCH RESEARCHProjectsformba.blogspot.com
  • Projectsformba.blogspot.com Limitations of the study • All the research projects are hindered in their smooth flow by some unforeseen problems. The problems arise in the form of constraints by budget, time and scope of the study. The current project was also faced by certain problem. Some of the problems faced in the course of the research are as follows: • A strong unwillingness on the part of the owners of various cars, to participate and aid the research. • The boredom and wavering concentration that set in among the respondents while answering the long questionnaire: thus in turn led to the difficulty of preventing incomplete questionnaires. • Sampling error: the research include a sample size of 100 customers which is not enough to determine the brand perception of the consumers for buying the cars. Since its not a census survey there is always a chance of error while extrapolating the results of a sample study over the population especially in those researches where the qualitative aspects are concerned. So it’s always doubtful to map the qualitative aspects using a quantitative measure.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com FINDINGS AND ANALYSISCross TabulationQ1. Why you bought your present car? Please rank from the highest order of preference 1. Increase in disposable income 2. Better safety at roads 3. Family needs 4. Increase in family size 5. Suits your lifestyle and personality Motives For buying a car 40 35 39 30 25 20 23 Series1 15 17 10 12 5 9 0 Increase in Better safety Family needs Increase in Suits your disposable at roads family size lifestyle and income personality MotivesProjectsformba.blogspot.com
  • Projectsformba.blogspot.com Interpretation: As per the analysis shows, increase in disposable income seems to be the most important reason for buying a car. This trend is reflected in the growth of the Per capita Disposable income and consequently the growth of the Indian automobile industry especially in the B and C segment cars. Similarly, the growing family needs like working partners, increasing family size, status, etc. add to the motives of buying a car.Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order ofyour preference) 1. Affordable price 2. Technical superiority over competition 3. Comfort 4. Manufacturer’s image 5. Value for money 6. Safety 7. After sale servicesProjectsformba.blogspot.com
  • Projectsformba.blogspot.com Product Specific Reasons for Buying a Car 2 10 32 Afforable prices Technical superiority Comfort Manufacturers image 28 Value for money Safety After sale services 7 9 12Interpretation:Indian market is still the hard nut to crack for most of the automobile manufacturers.Though the Indian car industry is among the fastest growing car markets of the world stillthe Indian psyche is too complex for the manufacturers to understand. The mostimportant reason for buying a car when it comes to B and C segment cars seems to be‘value for money’. 32% of the respondents suggested that affordable prices are the mostimportant factor while purchasing a car. This is the reason for sticking to a particularsegment till the next substantial rise in the personal disposable income. This reason isfollowed by ‘Value for money’ where the customers look for the best product, bestservices and best repute all bundled in one with the best deal they can strike. Thisexplains the reason for the stagnant or sudden growth in sale of B and C segment cars justbefore budget and near occasions like Diwali.Product Satisfaction LevelQ3. Please rate your existing car in terms of understated Interior Design features on ascale of 1 to 5 where1 Highly DissatisfiedProjectsformba.blogspot.com
  • Projectsformba.blogspot.com2 Dissatisfied3 Neutral4 Satisfied5 Highly SatisfiedInterior Type 1 2 3 4 5Seats designLeg RoomDash BoardInterior ColourMusic SystemAdjustable Front seat Headrest Interiors for Segment B cars 100% 3 3 3 3 3 3 3 80% 1 1 1 1 1 3 4 4 4 4 Adjustable Front Seat Headrest 4 4Level of satisfaction 4 Music System 60% 4 Interior Colour Dash Board 3 3 Leg Room 3 4 3 4 Seat Design 3 40% 4 4 4 3 3 4 4 20% 4 4 4 4 4 3 3 0% Maruti Maruti Maruti Indica Aveo Santro Getz Estilo Wagon Swift V2 Cars RInterpretation:Projectsformba.blogspot.com
  • Projectsformba.blogspot.comInteriors play a very important role in deciding the sale of a car. More plush, comfortableand exotic the interiors are more are the chances of its being popular among thecustomers. For this reason manufacturers spend billions of dollars every year on R&D tocontinuously improve the interiors of their cars. Seats, leg room, dash board, armrests etcare few of the options which count for the interiors. As the analysis show Getz scoressubstantially high w.r.t. its counterparts on the account of music system installed.Similarly, Indica V2 races far ahead as far as leg room is concerned. However, Wagon Rfares badly on this front. Overall, almost all cars get a mixed response in this segment asfar as the interiors are concerned Customer Satisfacton based on Interiors of Cars 100% 3 3 3 3 3 3 3 Satisfaction level ( in %age) 80% 3 3 3 4 5 4 5 4 4 4 4 Adjustable Front Seat Headrest 4 4 60% 4 Music System Interior Colour 3 4 4 5 5 Dash Board 5 3 40% Leg Room Seat Design 4 4 4 5 5 5 5 20% 4 4 4 4 4 4 4 0% a m o t na go ra en in en ee pt di er ar cc al st O In V M A B E go di In Cars Interior ParametersInterpretation: As one can see most of the respondents are quite happy with the interiors of theirrespective cars. However, one striking point observed here are that almost every car faresProjectsformba.blogspot.com
  • Projectsformba.blogspot.comneutral on the adjustable front seat headset. These cars have more leg room, come withattached music systems (Verna fares the best among all cars on this front) combined withluxury features like TV screens, armrests at the back seat etc.Q4.Please rate your existing car in terms of understated Safety features on a scale of 1 to 5 Safety Parameters 1 2 3 4 5 Crossbar under Dashboard Air Bags Anti Lock Breaking System Aerodynamic Shape Intensity of front lights Customer Satisfaction on the Safety Parameter 100% 90% 3 Customer Satisfaction Level ( %age) 3 4 4 5 4 4 80% 3 70% 3 3 5 60% 4 4 4 Intensity of front light Aerodynamic Shape 50% 4 ABS Air Bags 3 40% 3 Crossbar under Dashboard 3 4 3 4 30% 1 3 1 1 1 20% 1 1 10% 3 3 3 3 3 3 3 0% Maruti Maruti Maruti Indica Aveo Santro Getz Estilo Wagon Swift V2 (9) R(23) Safety Parameters of Different carsProjectsformba.blogspot.com
  • Projectsformba.blogspot.comInterpretation:As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every front,with Indica marginally better in features like crossbars under the dashboard and AntiBrake systems. Most of the cars in this segment fare relatively similar and very close toeach other on most of the fronts. Customer Satisfaction Level on Safety Parameters 100% 90% 3 3 4 4 4 4 5 80% Customer satisfaction level 3 70% 3 3 3 4 4 3 60% Intensity of front light Aerodynamic Shape 5 50% 4 4 4 ABS 4 4 4 Air Bags 40% Crossbar under Dashboard 30% 1 1 3 4 4 4 3 20% 4 4 10% 4 4 4 4 4 0% Esteem Baleno Indigo Indigo Optra Accent Verna Marina Cars Safety ParametersInterpretation:As one can see most of the respondents are quite happy with the safety parameters oftheir respective cars. However, one striking point observed here are that almost every carfares neutral on the safety parameters.Q5. Please rate your existing car in terms of following parameters Parameter 1 2 3 4 5 Fuel ConsumptionProjectsformba.blogspot.com
  • Projectsformba.blogspot.com Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed Customer Satisfaction Level on the Fuel Efficiency 100% 90% Customer Satisfaction Level ( %age) 3 3 3 4 4 4 4 80% 70% 3 4 3 60% 4 5 4 5 Stability at higher speed Pick up 50% Mileage 4 Fuel Consumption 40% 3 4 4 3 30% 3 4 20% 4 3 10% 3 3 3 3 3 0% Maruti Maruti Maruti Indica Aveo Santro Getz Estilo Wagon Swift V2 (9) R(23) Cars Fuel Efficiency ParametersInterpretation:The customer choice of the car highly depends upon the performance and maintenancecosts of the car. This is the reason why this class of parameter was chosen for this study.And the results show that Maruti’s Wagon R fares the best car in its segment as most fuelefficient car of all. Similarly, Wagon R fares the best on the terms like mileage but it lagsbehind Hyundai’s Santro on pick up front. So this segment shows a mixed bag ofresponse for the Fuel efficiency and mileage parameter. Indica V2 performs consistentlyon all the parameters and Getz fares really well on pick up whereas it fares badly on fuelconsumption. Considered this condition for Getz it should be seen as a red signal for themanufacturers so that Getz does not end up being like Fiat’s Palio famous as a car for‘drinking petrol.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Customer Satisfaction Level on the basis of Fuel Efficiency 100% 90% Customer Satisfaction Level ( in %age 4 4 5 5 5 5 5 80% 70% 60% 3 4 4 Stability at higher speed terms) 5 5 5 5 Pick up 50% Mileage Fuel Consumption 40% 3 3 3 30% 3 3 3 3 20% 3 4 10% 3 3 3 3 3 0% Esteem Baleno Indigo Indigo Optra Accent Verna Marina Cars Fuel Efficiency ParametersInterpretation:Segment C cars are known as hybrid car segment between the B segments fuel efficiencywith the luxury of the D class. Checking the same it seems that most of the cars in thissegment are placed much closed to each other with very little difference here and there.Most of the cars are fuel efficient w.r.t their weights and pick ups. Indigo fares as the bestcar in terms of fuel efficiency. Baleno fares a little bit behind than its counterparts as faras the stability at high speeds and mileage is concerned.Projectsformba.blogspot.com
  • Projectsformba.blogspot.comDealer Service Satisfaction LevelQ1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where 1 Highly Satisfied 2 Satisfied 3 Neutral 4 Dissatisfied 5 Highly Dissatisfied 1 2 3 4 5 Distance ( Proximity) Advertisements (Promotions) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Car Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) SchemesDealers are the middle men between a car manufacturer and its customers. Dealer thusbecomes the most important link in joining the company to its customers as he is theperson who will sell the product, will deliver it and will keep on providing the after salesservices to the customers as and when required. So, it becomes necessary automaticallyto study dealer as a part of customers’ satisfaction journey with the product called car! Why Maruti fares so well ahead of its competitors till date and its the largest carcompany in India with the largest market share in A and B segment is because during theprotected regime it build a dealers network so strong that its yet very difficult for most ofthe competitors to set up a network as large as Maruti. So wherever you go its notdifficult to find a Maruti service station and a Maruti dealer. This is how Maruti hasmaintained relationships with its customers and has been able to convert most of themProjectsformba.blogspot.com
  • Projectsformba.blogspot.cominto a repeat customer. So, dealer network is something of such importance that whilestudying the customer’s satisfaction profile its almost impossible to ignore it. Customer Satisfaction Level on the Basis of Dealers 100% 90% 2 3 3 4 4 Customer Satisfaction Level ( in %age terms) 4 4 4 4 5 5 4 4 80% 1 70% 4 2 3 2 4 2 4 4 4 60% 5 Hyundai 4 5 3 General Motors 50% 3 4 4 Tata Motors 4 4 40% 4 Maruti Suzuki 4 4 4 4 4 4 30% 20% 5 4 5 5 5 4 5 4 4 4 4 4 4 10% 0% f s af ge e e St m s ic ar s ) Se ided tie ity Ti re es rv er ca ns) Ch ice s ili pa ) m Se m ice nt n ice ov ac io he o xi fS Ce of rv ch oti rv Pr ct lF ro Sc yo st sa se Te m (P n i t) Co lit an io ro y& rv ni ce ed bi at Tr (P Se er an la rm Cr ts er of liv ai st en fo e( om Av ce Di De In m nc en st ise g( na Cu bi in rt Fi Am d ve dl re an Ad su rH As Ca Dealers releated parameters for diff ManufacturersInterpretation:While buying a car, dealers ‘choice play a very important role in deciding the companyand model’s choice. So dealers act as influencers on the complete buying behavior of theProjectsformba.blogspot.com
  • Projectsformba.blogspot.comprospective customers. Among all the listed factors Maruti fares the best among all itscounter parts in terms of dealer density which is quite obvious. Also, the cost of serviceprovided by Maruti dealers is the lowest followed by Tata Motors. Similarly, for B and Csegment cars Maruti emerges out as the clear winner among the four car companiesstudied all thanks to the vast, extensive and well managed dealer system.Q2. How do you rate the brand image of your car?1 2 3 4 5 Very Low Very High Brand Image 6 Customer Perception ( Avg) 5 4 3 Series1 5 2 4 4 4 3 3 3 1 0 Maruti Maruti Maruti Indica V2 Aveo Santro Getz Estilo Wagon R Swift Car BrandsInterpretation:As per the analysis, Santro is the car whose brand image is most preferred in the market.This is because of the reason, that it’s from the house of Hyundai a South Koreancompany known for its overall image. On the contrary Maruti Estilo and Aveo share theProjectsformba.blogspot.com
  • Projectsformba.blogspot.comsame platform on the brand image. This can be attributed to the fact that both these carsare relatively new on the block and market takes time to imbibe and give the brand animage. This is established by the fact that Maruti’s Wagon R and Swift are exactly thesame as far as the image is concerned. Customer Perception of Different Cars 6 5 Customer Perception ( Avg) 4 3 Series1 5 2 4 4 4 4 3 3 1 0 Esteem Baleno Indigo Indigo Optra Accent Verna Marina Car BrandsInterpretation:As the analysis reveals GM’s Optra fares as the Best Car as far as customers’ perceptionis concerned about the brand image of the car in the C segment. This is because of theProjectsformba.blogspot.com
  • Projectsformba.blogspot.comfact that GM itself commands an amazing brand image among its customers. Accent andVerna both Hyundai cars share the same position.Q3. Will you recommend your car toyour friends? • Yes • No Customers Ultimate Perception 80 73 70 60 50 Frequency 40 30 27 20 10 0 Yes No Customer Action ( Will you recommend your car to your friends?)Interpretation:It seems logical that satisfied customers will someday become loyal customers, in otherwords there is a positive correlation between customer satisfaction scores and customerbuying behavior. If a customer rates the car very high in satisfying his or her needs, thecar manufacturer should expect more referrals and this is reflected in the analysis that73% customers say that they will refer their car to their friends even if they move to othersegment or other brandQ4. Will you buy your new car in theProjectsformba.blogspot.com
  • Projectsformba.blogspot.com • Same segment , same manufacturer • Same segment, different manufacturer • Upper segment, same manufacturer • Upper segment, different manufacturer Customer Perception 40 35 30 12 25 Values 7 C 20 6 B 15 7 23 10 17 17 5 11 0 Same Segment, Same Segment, Upper Upper same different Segment, Same Segment, manufacturer manufacturers Manufacturer Different Manufacturer Customer ActionsInterpretation:The analysis shows that most people when moving to upper segment will prefer adifferent manufacturer. And the next striking finding is that the customers will preferboth same and different manufacturers in the B segment cars and there is not muchdifference in the C segment also. This behavior is complex to understand as this are thecustomers who have given whopping response for recommending their car to theirfriends. It’s the reason why brand perception is so difficult to understanDemographicsI surveyed around 100 people who belonged to various age groups. The survey of 4 agegroups was done. The four age groups were:Projectsformba.blogspot.com
  • Projectsformba.blogspot.com  Less than 21 years  21 -35 years  36-54 years  More than 55 yearsMONTHLY FAMILY INCOME monthly family income <50,000 50,001-1,00,000 1,00,001-2,00,000 >2,00,001 19 33 19 28I surveyed around 200 people who belonged to various monthly family income groups.The survey of 4 income groups was done. The four income groups were:  Less than 50000  50000 - 1,00,000  1,00,001 – 2,00,000  More than 2,00,001Interpretation:Above graphs exhibits the income bracket of the sample size, as evident the majority ofthe sample is in the income bracket of < 50,000 a month income. Though none of theProjectsformba.blogspot.com
  • Projectsformba.blogspot.combracket is highly skewed, this enables the study to be wide and not dependent on a setincome class, which was a fortunately desirable result of simple random sampling.Cross Tabulation 1. Motive to buy the car*segment car B and C Bar Chart 20 segm ent C ar B E s t i lo W agon R S w if t 15 S a n tro G e tz In d ic a V 2 A veo 10 E s te e m C n u o t B a le n o A ccent V e rn a 5 I n d i g o M a r in e In d ig o O p tra 0 Af Af va T C S m ec af om an fo te lu et hn rd rs u e y fo fa ic ab fo al rt ct al r es ur le S m er up pr on se s er ic rv ey im io es ic ag r ity e e ov er co m pe tit io respondants objective buying a car brand nInterpretation:According to the result, I found that choice of car depends upon these following factors:Projectsformba.blogspot.com
  • Projectsformba.blogspot.comSo the choice of car is not driven only by intensive factors such as brand perception but ishugely influenced by extensive factors such as price, service, and models available,financing options etc. also the choice of the car is largely influenced by the manufactureimage. This is why Maruti is perceived as a value for money car and Getz emerges out asa winner in the B segment for this criteria. As Getz is from the house of Hyundai knownfor its technology and great design is far better perceived as a preferred car than othercars. But a word of caution here, this perception may or may not result in a convertedsale. 2. Recommend the car to your friend*ranking of Brand and company Bar Chart respondants ranking of 40 brand and company image Very Low Low Neutral 30 High Very High 20 C n u o t 10 0 yes no Would you recommend your car to your friendsInterpretation:The graph shows that people who rank their car high or very high on the brand image arethe people who recommend their car to their friend. This is something the car companiesProjectsformba.blogspot.com
  • Projectsformba.blogspot.comshould look for as these people may not be the brand loyal but are definitely the peoplewho help a company to reinforce the brand image propagated by the company. 3. ranking of Brand and Image*Segment B and C car Bar Chart 10 segment Car B and C Estilo Wagon R 8 Swift Santro Getz Indica V2 6 Aveo Esteem Baleno C n u o t Accent 4 Verna Indigo Marine Indigo Optra 2 0 Very Low Low Neutral High Very High respondants ranking of brand and company imageInterpretation:This graph shows that how brand image is useful in making the choice of a car especiallyin the B and C segment. So, Santro is the car whose brand image is on the top and it’s themost preferred car. CONCLUSIONProjectsformba.blogspot.com
  • Projectsformba.blogspot.comTo conclude, the results show that the companies are playing on the peripheral cues tomaintain their Total Relationship Management and connect to the customers both presentand potential. The companies are operating in a highly aggressive and competitive globalmarket place and this climate has led to the emphasis on quality in all aspects. TQMfocuses on integration and coordination as well as the continuous improvement of allactivities and processes. Total Relationship Management (TRM) is a very recentmarketing strategy and philosophy. It focuses on and is concerned with all integratedinternal and external activities within and between the organizations. These two terms areintegrated by the manufacturers by building good quality products and building goodrelationship with dealers and enhancing service levels.However, when studied from the point of view of a customer there seems to be no majordifference among the car brands in a segment as far as performance is concerned. Thebrand perception is dependant mostly on the peripheral cues depending upon the natureand quality of the service provided along with the pricing, maintenance, availability ofspare parts and related issues. So, a question arises here that is this the end of road for thebranding of cars? Has the commoditization of cars has started and its time thatmanufacturers must read the writing on the wall? It seems so! It seems as an undercurrentsentiment is flowing and the perception of the customers is changing according to it. Sothis might be the reason that despite Verna faring so high on the performance parametersstill lags on the account of converted sales.The study shows that brand perception is something which starts building up before a caris purchased and goes on with its use and is reflected in the recommendations thecustomer makes to his acquaintances for the same car. Also, its seen that the customermight not be using the car still he holds the perceptions about it. Brand personality of acar is enforced by the sellers in the mindsets of the customers and the customers react toit by forming their perceptions about the car and this reflects in the overall brand imageof the car. So brand image and brand personality complement each other and the brandperception aids the building of brand image.Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Dealers, as per the study findings, play a very important role in building up the brandperception of the cars. Since dealers are the connecting link between the customers andthe manufacturers thus becoming the most important link in joining the company to itscustomers as he is the person who will sell the product, will deliver it and will keep onproviding the after sales services to the customers as and when required.So, it becomes necessary automatically to study dealer as a part of customers’ satisfactionjourney with the product called car! Their proximity to the customers, the serviceprovided by them and the relationship maintained by them with the customers helps thecar companies to establish and reinstate the brand personality communicated by them tothe customers. Finally the major point that emerges out of this detailed study is a caution for the carcompanies. It says that there is no doubt that Indian car market may be growing with adouble digit figure still the car companies have a long way to travel to convince theircustomers about the brand personality of their cars and how it suits the prospectivebuyers. Simply because it simply is not a guarantee that how so ever good the customermight be holding the brand perception and how so ever good the brand image may be it isnot a guarantee that it will convert into sale. Cars just like clothes and accessories suit thestyle and persona of a person and since all cars will become commodity someday the keyto sell and excel in the market will lie with a person who knows how to use theperceptions of the customers to its use and sell the cars ‘coz ultimately only that carsurvives which sells!ANNEXUREProjectsformba.blogspot.com
  • Projectsformba.blogspot.comREFRENCESSites Visited -www.siamindia.comwww.autocarindia.comwww.overdrive.comwww.hyundai.co.inwww.ibef.orgBooks consulted -Building Strong Brands- David A Aaker QUESTIONAIREProjectsformba.blogspot.com
  • Projectsformba.blogspot.comFor Customers:Q1. Why you bought your present car? Please rank from the highest order of preference 1. Increase in disposable income 2. Better safety at roads 3. Family needs 4. Increase in family size 5. Suits your lifestyle and personalityQ2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order ofyour preference) 1. Affordable price 2. Technical superiority over competition 3. Comfort 4. Manufacturer’s image 5. Value for money 6. Safety 7. After sale servicesProduct Satisfaction LevelQ3. Please rate your existing car in terms of understated Interior Design features on ascale of 1 to 5 where1 Highly Dissatisfied2 Dissatisfied3 Neutral4 Satisfied5 Highly SatisfiedInterior Type 1 2 3 4 5Projectsformba.blogspot.com
  • Projectsformba.blogspot.com Seats design Leg Room Dash Board Interior Colour Music System Adjustable Front seat HeadrestQ4 Please rate your existing car in terms of understated Safety features on a scale of 1 to5 Safety Parameters 1 2 3 4 5 Crossbar under Dashboard Air Bags Anti Lock Breaking System Aerodynamic Shape Intensity of front lightsQ5. Please rate your existing car in terms of following parameters Parameter 1 2 3 4 5 Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speedProjectsformba.blogspot.com
  • Projectsformba.blogspot.comDealer Service Satisfaction LevelQ1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where1 Highly Satisfied2 Satisfied3 Neutral4 Dissatisfied5 Highly Dissatisfied 1 2 3 4 5Distance ( Proximity)Advertisements (Promotions)Technical FacilitiesCost of ServiceAvailability of SparesInformation ProvidedService TimeChargesStaffCar Handling ( Delivery & service)Assured Customer TransactionsAmbience of Service CenterFinance ( Credit) SchemesQ2. How do you rate the brand image of your car?1 2 3 4 5 Very Low Very HighQ3. Will you recommend your car to your friends? • Yes • NoProjectsformba.blogspot.com
  • Projectsformba.blogspot.comQ4. If yes, will you buy your new car in the • Same segment , same manufacturer • Same segment, different manufacturer • Upper segment, same manufacturer • Upper segment, different manufacturer Age group:  <21 21-35  36-55 >55 What is your monthly Family income? Less than 50000 Rs 50,000 –Rs 1, 00,000 Rs 1, 00,001– Rs 2, 00,000 More than Rs 2, 00,001Number of car’s owned:Present Car (s) owned:NAME: SEX:Phone NO:Projectsformba.blogspot.com