A Research Report on “A Comparative Study of Marketing Strategy of Santro and Zen” A case of Bareilly City. Submitted For the Partial fulfillment of degree of master of Business Administration from G.B. Technical University, Lucknow 2010-11Research supervisor:- Submitted by: -Mr.Himanshu Dargan Janay AalamAsstt .Professor ,R.B.M.I. Roll no.1001670023 Submitted To Rakshpal Bahadur College of Engg. and Tec. (Bareilly)
INDEX - Declaration - Acknowledgement - Preface1. Introduction About Maruti Suzuki. About Maruti Suzuki Zen. About Hyundai. About Hyundai Santro.2. Objective of study3. Research Methodology - a) Research Concepts - b) Opted methodology4. Data Interpretation & Analysis Analysis & Interpretation5. Findings6. Limitations7. Suggestions & Recommendations8. Conclusion Bibliography Annexure - Questionnaire
DECLARATIONJanay Aalam, Roll no.1001670023 a student of MBA IV semester of Rakshpal BahadurCollege of Engg. & Tech. Bareilly hereby declare that the Research report titled “AComparative Study of Marketing Strategy of Santro and Zen.” (A case of Bareilly City). ismy original work and the same has not been submitted for the award of any other diplomaor degree. Janay Aalam MBA 4th sem
ACKNOWLEDGEMENT My Research report dealing with “A Comparative Study of Marketing Strategy ofSantro and Zen.” (A case of Bareilly City)provides me an exposure in the real world ofbusiness. I own a heart-felt gratefulness to some of the people for being present all the timewhenever any help was required in completion of the report.A heartfelt thanks to the respondents surveyed whose ideas, critical insights and suggestionshave been invaluable in the preparation of this report.Last but not the least a very warm thanks to Mr.Himanshu Dargan (guide) and all the facultymembers of RAKSHPAL BAHADUR COLLEGE OF ENGG. & TECH. BAREILLY forproviding me Guide lines in Research Report. Janay Aalam MBA 4th sem
PREFACEThis report has been prepared to have a received of what I have done and learnt about “AComparative Study of Marketing Strategy of Santro and Zen.” (A case of Bareilly City)This report contains a basic introduction of Maruti suzuki Zen and including Hyundai Santro. I hope that this Research report provides sufficient information regarding my workon the project. I would consider my efforts to be fruitful if it proves useful to somebody at somelater stage.
INTRODUCTION a) About Maruti Suzuki. b) About Maruti Suzuki Zen. c) About Hyundai. d) About Hyundai Santro
About Maruti SuzukiMaruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiaryof Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for overtwo and a half decades. The company has two manufacturing facilities located at Gurgaon andMansard, south of New Delhi, India. Both the facilities have a combined capability to produceover a 1.2 million (1,200,000) vehicles annually.The company plans to expand its manufacturing capacity to 1.75 million by 2013.The company offers a wide range of cars across different segments. It offers 15 brands and over150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10,A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, SwiftDZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzukiintroduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco,Alto, Estilo, Wagon R and Sx4In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell OneMillion cars in a year.Maruti Suzuki has employee strength over 8,500 (as at end March 2011)n 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. Withthis, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indianpassenger car market.Maruti Suzukis revenue has grown consistently over the years. Year Net Sales Year Net Sales(Million) 2005-06 1,20,034 2006-07 1,45,922 2007-08 1,78,603 2008-09 2,03,583 2009-10 3,01,198 2010-11 3,61,282Maruti Suzuki is India and Nepals number one leading automobile manufacturer and the marketleader in the car segment, both in terms of volume of vehicles sold and revenue earned. Untilrecently, 18.28% of the company was owned by the Indian government, and 54.2%
by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of thecompany in June 2003. As of 10 May 2007, the government of India sold its complete share toIndian financial institutions and no longer has any stake in Maruti Udyog.Maruti Udyog Limited (MUL)-Maruti Udyog Limited was established in February 1981, though the actual productioncommenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time wasthe only modern car available in India, its only competitors- the HindustanAmbassador and Premier Padmini were both around 25 years out of date at that point. Through2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India andvarious several other countries, depending upon export orders. Models similar to Maruti Suzukis(but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation andmanufactured in Pakistan and other South Asiancountries.The company exports more than 50,000 cars annually and has an extremely large domesticmarket in India selling over 730,000 cars annually. Maruti 800, till 2004, was the Indias largestselling compact car ever since it was launched in 1983. More than a million units of this car havebeen sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts.Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" iscommonly used to refer to this compact car model. Its manufacturing facilities are located at twofacilities Gurgaon and Manesar south of Delhi. Maruti Suzuki‟s Gurgaon facility has an installedcapacity of 350,000 units per annum. The Manesar facilities, launched in February 2007comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engineplant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaonfacilities have a combined capability to produce over 700,000 units annually. More than half thecars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki MotorCorporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public andfinancial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange inIndia.During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, oversix million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14December 1983. Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni,Eeco, Gypsy, Grand Vitara, Kizashi. Swift, SwiftDZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are importedfrom Japan as completely built units(CBU), remaining all models are manufactured in MarutiSuzukis Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars forthree decades. Suzuki‟s technical superiority lies in its ability to pack power and performanceinto a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people areemployed directly by Maruti Suzuki and its partners. It has been rated first in customersatisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.Joint venture related issuesRelationship between the Government of India, under the United Front (India) coalitionand Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indianmedia till Suzuki Motor Corporation gained the controlling stake. This highly profitable jointventure that had a near monopolistic trade in the Indian automobile market and the nature of thepartnership built up till then was the underlying reason for most issues. The success of the jointventure led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992.In 1982 both the venture partners had entered into an agreement to nominate their candidate forthe post of Managing Director and every Managing Director will have a tenure of five years[R.C. Bhargava was the initial managing director of the company since the inception of the jointventure. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in1982 he held several key positions in the company before heading the company as ManagingDirector. Currently he is on the Board of Directors. After completing his five year tenure, Mr.Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr.S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joinedMaruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat HeavyElectricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In1988 he was named Director, Productions and Projects. The next year (1989) he was namedDirector of Materials and in 1993 he became Joint Managing Director.Suzuki Motor Corporation didnt attend the Annual General Meeting of the Board with thereason of it being called on a short notice. Later Suzuki Motor Corporation went on record tostate that Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry ofIndustries, Government of India refuted the charges. Media stated from the Maruti Suzukisources that Bhaskarudu was interested to indigenise most of components for the modelsincluding gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy forthe Government and would not let it increase its stake in the venture.[ If Maruti Suzuki wouldhave been able to indigenise gear boxes then Maruti Suzuki would have been able tomanufacture all the models without the technical assistance from Suzuki. Till today the issue oflocalization of gear boxes is highlighted in the press.The relations strained when Suzuki Motor Corporation moved to Delhi High Court to bring astay order against Bhaskarudus appointment. The issue was resolved in an out-of-court
settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to 31December 1999, and from 1 January 2000, Jagdish Khattar, Executive Director of Maruti UdyogLimited would assume charges as the Managing Director. Many politicians stated inparliament that the Suzuki Motor Corporation is unwilling to localize manufacturing and reduceimports. As of 2011 Gear boxes are still imported from Japan and are assembled at the Gurgaonfacility.Industrial relationsFor most of its history, Maruti Udyog Limited had relatively few problems with its labour force.Its emphasis of a Japanese work culture and the modern manufacturing process, first instituted inJapan in the 1970s, was accepted by the workforce of the company without any difficulty. Butwith the change in management in 1997, when it became predominantly government controlledfor a while, and the conflict between the United Front Government and Suzuki may have beenthe cause of unrest among employees. A major row broke out in September 2000 whenemployees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among otherthings, revision of the incentive scheme offered and implementation of a pension scheme.Employees struck work for six hours in October 2000, irked over the suspension of nineemployees, going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of theincentive-linked pay and threatened to fast to death if the suspended employees were notreinstated. About this time, the NDA government, following a disinvestments policy, proposed tosell part of its stake in Maruti Suzuki in a public offering. The Staff union opposed this sell-offplan on the grounds that the company will lose a major business advantage of being subsidisedby the Government.The standoff with the management continued to December with a proposal by the managementto end the two-month long agitation rejected with a demand for reinstatement of 92 dismissedworkers, with four MUL employees going on a fast-unto-death. In December the companysshareholders met in New Delhi in an AGM that lasted 30 minutes. At the same time around 1500plant workers from the MULs Gurgaon facility were agitating outside the companys corporateoffice demanding commencement of production linked incentives, a better pension scheme andother benefits. The management has refused to pass on the benefits citing increased competitionand lower margins.
Services offeredCurrent sales of automobiles 1. 800 (Launched 1983) 2. Omni (Launched 1984) 3. Gypsy (launched 1985) 4. WagonR (Launched 1999) 5. Alto (Launched 2000) 6. Swift (Launched 2005) 7. Estilo (Launched 2009) 8. SX4 (Launched 2007) 9. Swift DZire (Launched 2008) 10. A-star (Launched 2008) 11. Ritz (Launched 2009) 12. Eeco (Launched 2010) 13. Alto K10 (Launched 2010) 14. Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car. 15. Maruti XA Alpha will be launched in the year 2014Imported 1. Grand Vitara (Launched 2007) 2. Kizashi (Launched 2011)Discontinued car models 1. 1000 (1990–1994) 2. Zen (1993–2006) 3. Esteem (1994–2008) 4. Baleno (1999–2007) 5. Zen Estilo (2006–2009) 6. Versa (2001–2010) 7. Grand Vitara XL7 (2003–2007)
About Maruti Suzuki ZenThe Maruti Zen is a 5-door hatchback produced and sold in India by Indian automaker MarutiSuzuki. It has acquired significant popularity in India since the nameplate was first introduced in1993. The word "ZEN" is an acronym standing for Zero Engine Noise. It also stands forthe Japanese word "Zen" which derives from the Sanskrit word "Dhyana" and means "To figureout something by meditation or by a sudden flash of enlightenment."Also sold as Suzuki Cervo Mode, in many parts of the world a blockbuster in its segment, thefirst generation Maruti Zen was introduced in 1993 [MH410]. In Europe, the car sold asthe Suzuki Alto. In 1997 Body Colour Bumpers. In 2000 its cost (of LX model) was around Rs3,80,000. The best part of the Zen is it remained in trend for over a very long period without anychanges in Exterior Design or looks.It underwent a facelift in 2003. The production of this model ended in March 2006Zen had a diesel variant which used the Peugeots TUD5 (PSA TU engine) engine.The Zen quickly became a hit with the Indian Racing Scene, highly modified versions of the 993cc G10B engine topping 100+ Bhp.In June 2003, a three door sports version of the Zen in VXi segment was launched, prices at 3.9Lakh (ex-showroom, New Delhi); there were two models released which differed only in colors1. Zen Carbon (black) 2. Zen Steel (silver)Maruti has launched the newer version of Zen Estilo with new engine, new look and newfeatures in India. The all new Maruti Zen is packed with new KB-Series engine that offers highengine performance with increased fuel efficiency. Maruti Zen Estilo has a look of miniaturizedfamily van because of its smooth, simple lines and the mono form design. Maruti Zen Estilo is ablend of the jellybean and tallboy designs, which gives it a unique stance and look. Zen Estilocomes with plush, premium interiors. Maruti Zen has a two-tone colour theme and its seats havebeen redesigned for providing better support and a fresh new upholstery to match the dual tonetheme of the interior.Aiming to further strengthen its leadership in the hatchback car segment, Maruti Udyog Ltdlaunched the Maruti Zen, called Zen Estilo. Zen Estilo is roomier than the previous model Zenand sports a 1.0L, 998cc, KB Series petrol engine. Zen Estilo is longer and offers more bootspace and superior air conditioning. It delivers 68 bhp and its low-end torque makes it ideal forIndian city conditions. Maruti Zen Estilo has a 998cc, three-cylinder engine and five-speedmanual gearbox combo. It gives a peak power of 68 bhp at 6,200 rpm and maximum torque of 90
Nm at 3,500 rpm. The company has just added one more variant to the Estilo family that isMaruti Zen Estilo LXI Green (CNG); this variant comes fitted with added CNG kit that is loadedat the companys factory: these kits are regarded as more reliable, responsive and safe.The hatchback comes loaded with standard ventilated disc brakes at the front and drum brakes atthe rear. The compact car sports front McPherson strut with Torsion type roll control device typeforks. The rear shockers are gas filled with three link rigid and isolated trailing arm.The new compact peoples car - Maruti Zen Estilo - comes dressed with exciting exterior thatlooks sober and perfect thanks to its new fresh front view which now consists of teardropdesigned headlamps, aggressive bumper and grille. The car has new three chrome finished stripsat nose that are placed horizontally with stylish Suzuki emblem at the central strip. Thedesigners did a decent job by giving the front lower portion a 3 D look but its not thatimpressive, to be very clear. Front wipers are located at the joining point of front windscreen andbonnet. The front turn indicators now find their place at the side walls of the car right above thefront wheels.The electronically powered ORVMs are painted in body colour so are the door handles. Thewheels have full cap. The company used caps instead of providing alloy wheels in the compactcar. The rear side, too, gets some new treatment in the form of tail lights and appearance. Thevehicle comes with rear fog lamps, back door defogger, rear window wiper and washers, etc. Therear of the car is adorned with flat hatch door and a wide rear windscreen. The wide and flat roofof the Maruti Zen Estilo houses a sleek antenna.
ModelsMaruti Zen Petrol Models This is the base variant of Zen Estilo that comes with standard features including rear door child lock, remote fuel lid opener, paddle typeMaruti Zen Estilo LX ORVMs, centre console with cup holders, new standard seat fabric,BS IV front and rear seat adjustable head restraints, steering lock, iCATs and bench type rear seat. This BS IV compliant Zen Estilo variant is equipped with all theMaruti Zen Estilo LXI features of the base variant along with power steering, power lock andBS IV key lock backdoor opener, front power window, central door locks, back door with body colored outside handle and body colour bumper. This top-end Zen Estilo variant sports all the advanced features such as front and rear fog lamps, back door defogger, rear window wiper andMaruti Zen Estilo VXI washer, security system, body side moulding, full wheel cap, all bodyBS IV coloured door handles, rear luggage shelf, tachometer, accessory socket, front and rear power windows, remote keyless entry, internally adjustable electrical type ORVMs. Driver side SRS airbag and ABS are optional safety features that canMaruti Zen Estilo VXI be availed in the Zen Estilo VXI variant. Rest of the features remainBS IV W/ ABS same as the Zen Estilo VXICompare Maruti Zen Petrol ModelsMaruti Zen CNG Models This newly launched CNG variant of Estilo has compressed gas as itsMaruti Zen Estilo LXI fuel type. With the i-GPI technology, the car ensures greater mileage atGreen (CNG) lower per kilometer cost. Other features and components are kept same as in the LXI variant.
Mileage, Average And Fuel EconomyThe hatchback compact car, Maruti Zen Estilo, has a 1.0 litre, KB series 998cc, 3 cylinderpowertrain under its hood that churns out a top power of 68 PS at 6200 rpm and belts out a peaktorque of 90 Nm at 3,500 rpm. The powertrain incorporates a five speed manual gearbox thatprovides desirable speed and better acceleration along with minimized vibration. The Maruti Zencomes equipped with MPFI fuel supply system that helps to enhance the mileage considerablyalongside the compact engine and lightweight body shell.The hatchback now has the latest BS IV compliant KB series engine that ensures higher fuelefficiency as well as greater acceleration. The car delivers a standard fuel economy of around18.2 kmpl on highways and 14.5 kmpl on city roads. The fuel tank capacity of Maruti Zen is 35litres. If you own a Maruti Zen Estilo VXi Green (CNG), you are provided with two fueloptions-petrol and CNG. The CNG fuel system promises higher mileage and low running costthan the petrol engine. To achieve the best fuel economy, the CNG system is powered by the i-GPI bio-fuel technology that works to use maximum compressed gas for more mileage.PowerMarutis popular compact car Maruti Zens revamped version -Maruti Zen Estilo - is poweredby a 998cc, 3 cylinder KB series powertrain that offers a nimble 68 Ps of power at 6,200 rpm andagile torque of 90 Nm at 3,500 rpm. The cable type gear shift mechanism with DETENT PINTECHNOLOGY (DPT) gives precise and smooth gear shifting experience supported by 5 speedmanual transmission. The latest KB series engine is designed to meet the latest BS IV emissionnorms and deliver greater fuel economy, higher power and acceleration.ColorsThese colors are available with all variants of Maruti ZenVirgin BlueChampangne beigeSparking oliveBrilliant yellowMidnight blackPearl silverBright redPurple fusion
Acceleration & Pick-UpThe existing Maruti Zen Estilo is claimed to be the most fuel efficient and a powerful performeron the back of the KB series engine. This new engine series was first introduced in Maruti A-Star. Zen Estilo comes loaded with the same engine which comprises of 3 cylinders, 998cc,DOHC and a five speed manual gearbox. The new engine brings higher power and torque figuresin comparison to its previous model. The new power-plant produces a max power of 68 PS at6,200 rpm and delivers a higher torque of 90 NM at 3,500 rpm while its predecessor delivers atop power and torque of 64 PS and 84 Nm respectively. Added bonus is Maruti Zen accelerationwhich also becomes more agile with the 0-100 kmph sprint being covered in only 26.62 secondswith the car touching the top speed of 160 kmph.ExteriorThe largest car selling company in India, Maruti India offers an updated version of Maruti ZenEstilo that has new front and tail side along with innovative powertrain. Most of the changes inthe new Zen Estilo are made to its front including headlamp, grille, nose design, bumper etc.The compact hatchback is adorned with new teardrop shaped headlamp cluster that is sweptback. The cluster houses headlight with low and high beam. The headlamp clusters are connectedwith three grille strips placed horizontally; the middle one gets the respected emblem of Suzuki.The lower air-intake has a wider rectangular box type design with round corners at the upperside; the strips here are positioned horizontally in the way the upper strips are. The front foglamps rest in a 3 D style slot in round shape that ensure clear vision even in bad weatherconditions where headlights do nothing except offer a dim illumination. The front windscreen ofthe Maruti Zen Estilo comes with a 2 speed intermittent front wiper and a small antenna at thetip of the roof that looks very funky. To give the vehicles moving ahead, a clear vision of yourcar in motion, the car is fitted with side turn indicators above the front tyres.One of the most popular small car of Maruti, Maruti Zen Estilo features body colour ORVMsthat can be adjusted internally and body match door handles along with both side bumper in bodycolour. The car has a bold and impressive waistline. It is also assembled with remote fuel lidopener and all power windows with black out film.The rear of the car possesses a vertical stacked tail lamp slot that houses a reverse light, turnindicator and brake light, rear fog lamps which are available in the higher end variant only. Anew rear wiper sports distinctive design and exhaust tip that is now more shorter and vertical.Last but not the least, the full wheel cap of the car looks very sporty and aggressive.
Exterior MeasurementsThe Maruti Zen Estilo is a compact hatchback that can accommodate five people inside,including the driver. The overall height, length and width of the small car is 1595mm, 3600mmand 1475mm respectively for LX and LXI but the height of VXI variant is 1495mm. The vehiclehas a wheelbase of 2360mm along with a ground clearance of 165mm. The front and rear trendare of 1295mm and 1290mm respectively.Maruti Zen Estilo InteriorsInterior AppearanceApart from the welcomed changes on the exterior of the Maruti Zen Estilo, the designers havegiven the car different interiors altogether by offering new features. The cabin of the car isdressed with new standard coloured coordinated seat fabric, dual tone dashboard, adjustable headrests, rear seat bench, floor carpet, etc.The dashboard of the Maruti Zen Estilo is an eye catcher. It has ample storage space in the formof glove box and other en-carved space. AC vents in chrome finish rings not only improve thelook of the cabin but also keep the inside temperature cool. Apart from this, the dashboardhouses an illuminated instrument cluster comprised of tachometer and digital fuel level indicatorwith silver lining that adds to the superiority of the hatchback. You will never miss the Look atme styled three spoke power steering. The complete interior looks elegant with two-tonebeige/brown colour blending. There are two cup holders in the front row and one in the secondrow.Interior ComfortThe new avatar of the Maruti Zen Estilo proves to be a family car with ample storage andsufficient seating capacity. To enhance the comfort level, the company has loaded the vehiclewith rear luggage shelf, rear bench seat, all power windows and power steering, A/C, internallyadjustable electrical type ORVMs, power lock +key backdoor opener, sun visor with ticketholder, vanity mirror, central door lock, front door pocket, speaker provision, co-driver side frontdoor lock, remote keyless entry system etc.Interior MeasurementsThe Maruti Zen Estilo is a compact hatchback that can accommodate five people at a time,including the driver. You can also load a good amount of luggage by folding the rear seat.
Moreover, a rear luggage shelf is also provided for carrying extra luggage. Legroom, headroom,shoulder room are not a concern when you are in this small wonder.Engine Capacity & PerformanceUpgraded version of the Maruti Zen Estilo is available with a new look and powertrain toattract the compact car lovers in India. The car is gifted with new KB series mill that was used inMaruti A-Star initially. The company developed the new KB series engine to upgrade all itsmodels to meet the new BS IV emission norms that came into force since 1 April, 2010.The new mill of Maruti Zen not only promises increased fuel economy but also enhances theengine output. The 1.0 litre, 998cc, 3 cylinder, DOHC type engine generates a high power of 68PS at 6200 rpm and pumps out a top torque value of 90 Nm at 3,500 rpm which is far better thanthe previous engine.The powertrain of the Maruti Zen Estilo comes coupled with a new cable type gear shifttechnology that ensures precise, smooth and hassle-free gear shifting. The five speed manualtransmission smartly uses the engine power to deliver uninterrupted performance. The CNGvariant of the car comes assembled with a new CNG kit that generates good amount of engineoutput along with greater fuel economy.WheelsThe new version of Maruti Zen Estilo comes loaded with 13 inch wheels with full wheel cap.The tubeless tyres ensure uninterrupted journey. The tyre size for the car is 145/70 R13 in LXand LXI variant while it is 155/65 R 13 in the VXI variant. The wheelbase of the car is prettygood, that is, 2360mm.Braking & HandlingRevamped version of the popular car - Maruti Zen Estilo hosts a contemporary braking system.It has front disc brakes and rear drum brakes for instant halting of the vehicle. The compacthatchback car now comes featured with front McPherson strut with Torsion type roll controldevice type forks and rear shock absorbers that are gas filled with three link rigid and isolatedtrailing arm. The suspension system offers ultra stability to the car. The efficient braking andsuspension system of the Maruti Zen promises great level of handling as well as comfort andsafety.
About HMILHyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company(HMC), South Korea and is the largest passenger car exporter and the second largest carmanufacturer in India. HMIL presently markets 7 models of passenger cars across segments. TheA2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and theVerna, the A5 segment includes the Sonata Transform and the SUV segment includes the SantaFe.HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts of the mostadvanced production, quality and testing capabilities in the country. To cater to rising demand,HMIL commissioned its second plant in February 2008, which produces an additional 300,000units per annum, raising HMIL‟s total production capacity to 600,000 units per annum.In continuation with its commitment to providing Indian customers with cutting-edge globaltechnology, HMIL has set up a modern multi-million dollar research and development facility inthe cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineeringand ensure quick turnaround time to changing consumer needs.As HMCs global export hub for compact cars, HMIL is the first automotive company in India toachieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to morethan 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. It has beenthe number one exporter of passenger car of the country for the sixth year in a row. To supportits growth and expansion plans, HMIL currently has a 329 strong dealer network and 698 strongservice points across India, which will see further expansion in 2011.“It all started with just one man, a small repair shop and an insistence on delivering quality thatstill endures today.This is the story of Chung Ju-Yung. Born the son of a peasant farmer, Mr Ju-Yung launched Hyundai in 1947 at the age of 32. At first it was a small vehicle repair shop. Thenit grew, and became the Hyundai Auto Service Centre. 20 years later, Hyundai vehicle assemblywas born. The Pony hatchback soon followed, and today, Hyundai is the fifth largest carmanufacturer in the world.”Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai MotorCompany, South Korea and is the second largest and the fastest growing car manufacturer inIndia. HMIL presently markets 16 variants of passenger cars in six segments. The Santro in the Bsegment, Getz in the B+ segment, the Accent and Verna in the C segment, the Elantra in the Dsegment, the Sonata Embera in the E segment and the Tucson in the SUV segment.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger carmanufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increaseof 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent acompared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exportsof 113,339 units.HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of themost advanced production, quality and testing capabilities in the country. In continuation of itsinvestment in providing the Indian customer global technology, HMIL is setting up its secondplant, which will produce an additional 300,000 units per annum, raising HMILs totalproduction capacity to 600,000 per annum by the end of year 2007.HMIL is investing to expand capacity in line with its positioning as HMCs global export hub forcompact cars. Apart from expansion of production capacity, HMIL plans to expand its dealernetwork, which will be increased from 183 to 250 this year. And with the companys greaterfocus on the quality of its after-sales service, HMILs service network will be expanded toaround 1,000 in 2007.The year 2006 has been a significant year for Hyundai Motor India. It achieved a significantmilestone by rolling out the fastest 300,000th export car. Hyundai exports to over 65 countriesglobally; even as it plans to continue its thrust in existing export markets, it is gearing up to stepup its foray into new markets. The year just ended also saw Hyundai Motor India attain othermilestones such as the launch of the Verna and yet another path-breaking record in its youngjourney by rolling out the fastest 10,00,000th car.The Hyundai Verna has bagged some of the most prestigious awards starting with the OverdriveCar Of the Year 2007, CNBC-TV18 Autocar Best Value For Money Car 2007 andPerformance Car of the Year 2007 from Business Standard Motoring.Last Year Sonata Embera won the Executive Car of The Year 2006 award from BusinessStandard Motoring Magazine and NDTV Profit Car & Bike declared the Tucson as the SUV ofThe Year 2006.HMIL has also been awarded the benchmark ISO 14001 certification for its sustainableenvironment management practices.About HMCEstablished in 1967, Hyundai Motor Co. has grown into the Hyundai Kia Automotive Groupwhich includes Hyundai Mobis and over two dozen auto-related subsidiaries and affiliates.Employing over 68,000 people worldwide, Hyundai Motor posted US$27.383 billion in sales in2005 (on a non-consolidated basis). Hyundai motor vehicles are sold in 193 countries throughsome 5000 dealerships and showrooms. Hyundai Motor Co. is a sponsor of the 2006 FIFAGermany World Cup.
About Hyundai SantroAt present, the Hyundai Santro Xing is available with a 1.1 litre, SOHC, 4 cylinder, 1086cc,petrol engine that produces maximum power of 63 Ps at 5500 rpm and develops highest torqueof 9.8 kgm/96 Nm at 3000 rpm. The powertrain is mated to a five speed manual transmission.Hyundai Santro Xing now houses front ventilated disc brakes and rear drum brakes while it hasfront McPherson Strut and rear torsion beam axle suspension with coil spring. The top variant ofthe model comes with full wheel cover on 13 inch long wheels.Lookwise, the Hyundai Santro looks ordinary but is designed well enough to attract small carlovers. The front fascia of the car comes with rectangular headlamps with chopped left corner.The front grille has got special three parallel body colour radiator grille that find centrallylocated Hyundai logo in chrome. The lower air intake cluster comes across the lower portionabove the body colour bumper. This black out slot sports box-type design along with fake frontfog lamp like moulding. The Hyundai Santro Xing gets black colour conventional ORVMs andsame colour door handles and waistline moulding. The rear side view of the small car looks moreappealing than the front one; it has vertically stacked tail lamps clusters, wider rear windshield,black sleek moulding on the body colour bumper and rear spoiler in top-end variant.The interior of the Hyundai Santro Xing gives the occupants a luxury feeling with its dual toneinteriors, modern looking dashboard components and exciting addition of a few different shadetouch. The car provides seating for 5 passengers; the seats have dual tone wrapping. Theblackout dashboard comes with chrome finish at AC vents and centre dash. The steering wheelof the Hyundai Santro is powered and is wrapped in black colour including its three spokes. Theseats of the car are integrated that come with integrated head restraints. The instruments panel ofthe hatchback has three round shaped dials that comprise of trip meter, low fuel warning lamp,speedo etc. Apart from these worth deserving features, the Hyundai Santro Xing houses anumber of comfort features including AC, 1 DIN Audio, heater, internally adjustable ORVMs,front power window, remote fuel lid opener & tail gate release, intermittent front wiper andwasher, rear parcel tray, front and rear speaker grille, front map lamp, ash try, etc.One of the most popular hatchback in India, Hyundai Santro Xing also possesses fair amount ofsafety features excluding air bags. The safety provision includes child safety rear door locks,dual side impact beams, front and rear seat belts, day and night inside rear view mirror, centrallocking, self locking door, immobiliser, front ventilated disc brakes, etc.
ModelsHyundai Santro Petrol ModelsHyundai Santro XingGLHyundai Santro XingGLSHyundai Santro XingAE GLS AudioHyundai Santro Xing(Non AC)Compare Hyundai Santro Petrol ModelsHyundai Santro LPG ModelsHyundai Santro XingGL LPGHyundai Santro XingGLS LPGHyundai Santro XingGLS Audio LPGCompare Hyundai Santro LPG ModelsMileage, Average And Fuel EconomyThe all new Hyundai Santro Xing is powered by a 1.1 litre, SOHC, 4 cylinder, 1086cc, petrolengine that is mated with a five speed manual transmission; the end result of the powertrainaccounts max power of 63 Ps at 5000 rpm and max torque of 96 Nm at 3,000 rpm. Thepowerplant of the car is powered by eRLX or Active Intelligence Technology that is comprisedof three innovative systems including Rotary Head Intelligent Valve Actuator and DifferentiallyProgrammed Intelligent Injection that ensures optimum fuel distribution to engine in various
driving requirements which resulted in better mileage and power. The third system i.e. RealTime Intelligent Ignition ensures perfect time to ignite the fuel and air mixture for higher power,mileage and low emissions. With the combined efforts of all these systems, the Hyundai Santrogives 13.7 kmpl of mileage in city limits and 17.8 kmpl on highways.The Hyundai Santro Xing is also available with LPG variants and additional LPG kits. With LPGfuel, the car gives more or less same fuel efficiency.PowerThe popular hatchback of Hyundai- Hyundai Santro Xing - is loaded with a smart powertrainthat is a 1.1 litre, 1086cc, 4 cylinder, SOHC, petrol engine that churns out a top power of 63 Psat 5500 rpm and belts out a top torque of 96 NM at 3000 rpm via five speed manualgearbox. The eRLX powered 1.1 litre motor is incorporated with three advanced systems thatwork to enhance power and efficiency. The Rotary Head Intelligent Valve Actuator is there forsmooth opening and closing of valve that reduce engine workload along with improving power.Added to this, the Differentially Programmed Intelligent Injection and Real Time IntelligentIgnition system help to get maximum engine power with higher fuel efficiency.ColorsThese colors are available with all variants of Hyundai SantroDynasty RedNoble WhiteBright SilverMidnight GreyPassion RedSky BlueEbony BlackHusky BlueReal EarthOrange TangoSpace SilverAcceleration & Pick-UpThe evergreen product of the Hyundai Motor India, Hyundai Santro Xing, comes equipped witha 1.1 litre, 1086cc, SOHC, 4 cylinder petrol engine that effortlessly pumps out max power of 63Ps at 5500 rpm and 96 Nm at 3000 rpm. The car engine incorporates a five speed manual
gearbox. As described under earlier sections, it has got three dynamic systems including theRotary Head Intelligent Valve Actuator, the Differentially Programmed Intelligent Injection andReal Time Intelligent Ignition system that are responsible for improved power and fuel economy.The end result of all these mechanism is enhanced power and zipper acceleration. The car can dothe 0-100 kmph sprint in just 16.5 seconds with a top speed of 141 kmph.ExteriorThe Hyundai Santro Xing carries pretty good exterior looks that are contributed by its sober frontand better rear view appearance. Its front face sports large clear headlamps, body colour frontradiator grille section with company logo, longer lower air dam and black bumper insertmoulding at the middle. The bumper are wrapped in body match to give it a sporty look. TheOutside rear view mirrors and door handles get conventional shade that is black; although, itlooks good on vibrant car body colour. Broad waistline is also wrapped in black. The wheels ofthe hatchback house full wheel cover that look like alloy wheels.The rear view of the Hyundai Santro Xing is as elegant as the front fascia. To be precise, it haswell designed boot lid and tail lamps. The car comes with rear spoiler with dotted stoplamp that not only looks stunning but also contributes to provide excellent aerodynamicstability at high speed. The vertically stacked sleek elongated tail lamps cluster comprises ofrear tun indicator and brake light that inform the trailing vehicles about the cars move. A longblack insert is added below the boot lid to add style to the rear view. The Hyundai Santro Xingalso sports rear body colour bumper along with black boot lid skirt. The hatchback comes withwider rear tinted windscreen without wiper or washer.Exterior MeasurementsThe Hyundai Santro Xing is a hatchback that has a seating capacity for five. The small carsoverall length is 3565mm, width 1525mm and height is 1590mm. It has a wheelbase of2380mm; front and rear track are of 1315mm and 1300mm.InteriorAs far as the interior appearance of the Hyundai Santro Xing is concerned, the hatchback comeswith two tone beige and brown interior and two tone seat upholstery, the combined effect isawesome. The cabin of the small car is now re-designed well and has got new features. Theinstrument panel of the machine has very common design and meters; the white background ofthe total three dials with red needles look decent, speedometer gets middle round dial while thefuel meter and tachometer come at sides. But the meters are hard to read due to their similarcolor scheme.
The Hyundai Santro Xing sports new design AC vents and newly added stunning optional 1DIN audio player with blue illumination; the audio player and AC vents house silver finishpanels. The vehicle has front speaker grille at dashboard and rear speaker grille as standard to allvariants. The car has three spoke power steering in dashboard colour that is black: the steeringcolumn is energy absorbing. A day and night inside rear view mirror is also provided to seerear passenger and trailing vehicles. The seats has beige and brown upholstery; the front seats aresporty integrated while the rear seats has integrated head restraints. Door trim comes with fabricinsert. Other important interior features that Hyundai Santro carries are ash tray, front map lamp,new rear parcel tray, B & C pillar trims, driver side front door map pocket and cupholders.Interior ComfortThe first hatchback from Hyundai Motors - Hyundai Santro Xing - is not only an affordable carbut also very comfortable for a small family. The New Hyundai Santro Xing possesses optional 1DIN audio player that can play CD/MP3; AUX and USB connectivity is also offered with theaudio system. The three spoke power steering of the small car makes the driving smooth andeasy and does not require a lot of effort. For ultra cabin comfort, conventional AC and heater isfitted that make you feel sitting in a premium car: AC vents now get silver finish that improvesthe dashboard appearance.The Hyundai Santro Xing is designed to accommodate five passengers comfortably inside thecabin . There are two seat rows in the car; front seats are sporty and second seat row, for threeaverage sized passengers, comes with integrated headrests. Both the rows have sufficient roomfor leg, hip, shoulder and headroom. The ORVMs of the Hyundai Santro can be adjustedinternally. Front windows are powered while the rear ones are very general. To add luxury to thedrivers comfort, remote fuel lid opening and tail gate opening facility is provided.Interior MeasurementsThe Hyundai Santro Xing is a 5 seater small family car. Both the cabins of the car providemoderate room for comfort sitting. You can also put small luggage in its boot.Engine Capacity & PerformanceThe Hyundai Santro Xing is powered by a 1.1 litre, 1086cc, 4 cylinder, SOHC, petrolengine that offers maximum power of 63 Ps at 5000 rpm and belts out peak torque of 96 Nm at3000 rpm. It is coupled with a five speed manual transmission. The powerplant of the car isadded with a number of power and fuel enhancing technologies. The Active IntelligenceTechnology, powering the engine, comprises of three innovative systems that includes Rotary
Head Intelligent Valve Actuator, the Differentially Programmed Intelligent Injection and RealTime Intelligent Ignition system.The Rotary Head Intelligent Valve Actuator ensures sufficient fuel distribution to engine invarious driving requirements which results in better mileage and power. In the same way, theReal Time Intelligent Ignition ensures perfect time to ignite the fuel and air mixture for higherpower, mileage and low emissions. In addition to this, the Differentially Programmed IntelligentInjection intelligently provides accurate amount of required fuel to the mill for better mileageand power. The Hyundai Santro Xing is also available in LPG variants and CNG kits.WheelsThe popular small wonder of Hyundai Motor India, Hyundai Santro Xing is assembled with 13inch wheels and pretty high profile tyres; the car has tubeless radial tyres as well. To giveextra beauty to the wheels, full wheel covers are offered with the Santro Xing.Braking & HandlingThe Hyundai Santro Xing comes loaded with sound braking and suspension system that helpsone to enjoy a comfortable and safe drive. The hatchback is fitted with front ventilated discbrakes and rear one are self adjusting drum type. These smart brakes halt the car even whengently pressed.The Hyundai Santro Xing is also packed with rigid suspension system; the front forks areMcPherson Strut with coil spring while the rear suspension is torsion beam axle type with coilspring. The suspension system ensures smooth driving and chassis stability.Handling & SafetyThe Hyundais flagship car, Hyundai Santro Xing comes featured with class leading features thatensure great handling and comfort. The features which help in better handling include smoothpower steering wheel, soft gear shift knob, wider wheelbase, front ventilated disc brakes,aerodynamic design, etc.The second largest car manufacturer in India introduced Hyundai Santro Xing with enoughsafety features; the safety provision include new immobilizer, self locking door, centrallocking, Day and night inside rear view mirror, front and rear seat belts, dual side impact beams,child safety-rear door locks, energy absorbing steering column, etc.
The Marketing Mix1.Product2.Price3.Place4.PromotionThere you have it, the 4 marketing psSo now lets get a bit more explanation of the 4 marketing ps :-
1. Product - The product aspects of marketing deal with the specifications of the actual goodsor services, plus how it relates to the end users needs and wants. The range of a product normallyincludes supporting elements such as warranties, guarantees, and support.The term “product” refers to tangible, physical products as well as services. Here are someexamples of the product decisions to be made: Brand Name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services Models and sizes2. Price -This refers to the process of setting a price for a product, together with discounts. Theprice need not be monetary; it can plainly be what is exchanged for the product or services, e.g.time, energy, or attention. Methods of setting prices optimally are in the domain of pricing art.Some example of pricing decisions to be made include : Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination Allowances and deals Discount structure Distribution and retailer mark-ups
3. Place - (or distribution ): refers to how the product gets to the buyer; for instance, point-of-sale assignment or retailing. This third P has furthermore at times been called Place, referring tothe channel by which a product or service is sold (e.g. online vs. retail), which geographic regionor industry, to which division (young adults, families, business citizens), etc. also referring tohow the surroundings in which the product is sold in can influence sales. Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics Outlet location Sales territories4. Promotion - This includes advertising, sales promotion, including promotional education,publicity, and individual selling. Branding refers to the assorted strategies of promoting theproduct, brand, or company. Promotional strategy (push, pull, etc) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget All the 4 marketing ps are also known as "the marketing mix" furthermore are frequentlyused by a marketer to plot a plan, and place the foundations of fresh projects/campaigns, it is aastonishingly useful strategy that has been used ever since the early 1960s, and will be constantfor as long as new-found projects/campaigns are being produced.
MARKETING STRATEGY OF MULMarutiwas the first company in India which studied the consumer demandand respondedto it well.Market segmentation policy was adopted that targeted different type ofconsumers withdifferent type of models.Maruti800targeted medium income group, while the deluxe modeltargeted rich incomegroup.Marutivan targeted businessmen and doctors(ambulance)The Gypsy targeted the paramilitary forces and the police.This resulted in complete control of marutiover the market .The company advertised its different products according to costumers.A special cell was made to make direct dealing of Gypsy with thegovernment & thearmy.
Current and Future Market Strategies Design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with the entry of global auto makers. Company would capitalise on Suzuki’s research and development capabilities and internal resources to finance its expansion, thereby cushioning itself from the higher interest rates and borrowing costs and become cost competitive. Company’s plan to stay away from the ultra low-cost segment. Maruti Suzuki is looking to make India an exclusive base to manufacture small cars for Europe.Design small cars suitable for the Indian conditions as a strategy to beat the stiffcompetition with the entry of global auto makers.Company would capitalise on Suzuki‟s research and development capabilities andinternal resources to finance its expansion, thereby cushioning itself from the higherinterest rates and borrowing costs and become cost competitive.Company‟s plan to stay away from the ultra low-cost segment.Maruti Suzuki is looking to make India an exclusive base to manufacture small cars forEurope.
Competitive Advantage of MUL Dealer network across the country wide dealership network allows the company to service customers over a wider geographical area than competitors. Currently, MUL has 500 sales outlets that cover 312 cities, as compared to 162 outlets of Hyundai Motors and 140 outlets of Tata Motors. True Value Operations MUL providing its customers an opportunity to resale their car to MUL or exchange with a new Maruti car under its “True Value” network has proven really beneficial. In FY07 True Value network touched 10000 units a month and more than 90% of that resulted in the exchange of a new car. Presence across segments In a car manufacturing plant, the press shop, paint shop, engine and transmission assembly, and machine shop are used for manufacturing different models. Commonality of platforms-Commonality between the platforms of various models lead to lower product development efforts and higher benefits of economies of scale, uses only two platforms. Strong support in R & D and Product from parent -MUL‟s strength lies in the strong parentage of SMC, Japan.Maruti Suzuki‟s Key Success Factors Technology-Related KSF‟s o 1. R&D facilities and Japanese collaboration. o 2. Suzuki internationally known for Small cars. o 3. Launch of World class quality cars like A-STAR and SPLASH Manufacturing-Related KSF‟s o Designing cars best suited for Indian market. o Cost leadership in the market due to efficient value chain and manufacturing plants.
Distribution-Related KSF‟s o The record sales performance was affected through the Companys vast dealership network. o Car sales outlet increased to 600 covering 393 cities. o There are 265 „Maruti True Value‟ outlets spread across 166 cities, which are engaged in the sale, purchase and exchange of pre-owned cars. „Maruti True Value‟ is the largest organized pre-owned car sales network in India. Marketing-Related KSF‟so Full range of cars-from entry level Maruti 800 & Alto to stylish hatchback A-star, Swift, Wagon R, Estill and sedans DZire, SX4 and Sports Utility vehicle GrandVitara.o Communication through advertisement is totally to the need of Indian cultureo Pan-India service network. Skills and Capability-The service network had a total of 2,628 service outlets including dealer workshop as well as Maruti Authorized Service Stations, covering 1220 cities.
1. Industry Rivalry High Fixed costs When total costs are mostly fixed costs, the firm must produce capacity to attain the lowest unit costs. Since the firm must sell this large quantity of product, high levels of production lead to a fight for market share and results in increased rivalry. The industry is typically capital intensive and thus involves high fixed costs.
Slow market growth In growing market, firms can improve their economies. Though the market growth has been impressive in the last few years (about 8 to 15%), it takes a beat in even slight economic disturbances as it involves a luxury good. Aggressive pricing is needed to sustain growth in such situations. Low switching costs Free switching between products makes it difficult for the companies to capture customers. Since, the purchase of the product involves a good amount of decision making.2. Threat of substitutes Increasing Two wheelers/Motor Cycle Market, Because of rising fuel prices. Public Transportation.( Local trains, Metros, Buses) Maruti„s Advantage Price performance comparison favours heavily towards Maruti in mostproduct categories. Also the high availability and quality of services offered by Maruti gives thecustomer a better trade-off.3.Buyer Power When buyer power is strong, the buyer is the one who sets the price in the market.For Maruti , the sales volumes have shown increasing trend over past so many years. Difficult to measure since repurchases are rare. Buyers get incentives in the form of cost discounts and better after sales services.
4. Supplier Power Critical General Components and Components and Few Suppliers. various Suppliers. High Supplier Power Low Supplier Power Steel is a major input in this industry and so steel prices have a sharp and immediate impact on the product price. Substitute inputs are restricted to non critical or additional components like electronic gadgets and interior design components. The industry being capital intensive switching costs of suppliers Is high, other than steel as raw material which is highly price sensitive and the firm may easily move towards a supplier with lower cost.
5. Barriers to Entry / Threat of Entry Government policies o Encouragement of competition by the new policies and to avoid monopolistic Activities. o Liberal policies for foreign brands to enter into India. Patents and Proprietary knowledge o Maruti‟s R&D capability has evolved. Its contribution to global design projects has been recognized, first with the Swift and now the Concept A-Star. Let us do more. Further, Maruti Suzuki has been rated first in customer satisfaction for eight years in a row. The same applies to the dealer practices, supply chain, quality processes, information technology, parts operations and so on. Economies of scale o Economies of scale are becoming increasingly important as competition is driving the profit margins to lower levels. Also being a capital-intensive industry economies of scale have important consequences.
Marketing Strategy of HyundaiEntered in Indian car market through its subsidiary HMIL in 1996.Before making its move, the company-‡ Closely studied the industry for an year. Talked to vendors, dealers and customers to get a thorough knowledge of the industry. Conducted a survey, where customers were asked to rank their preference for cars by the country of origin.HMC initially wanted to introduce Accent as its first car in India. However they ended uplaunching Santro as the first car.May26, 1996 HMC established its plant in Tamil Nadu , near Chennai @ 614Mn. Plant had acapacity of producing 1.2 lakh cars and 1.3 lakh engine trans. units PA.HMC s foray into Indian car market was unique in 2 ways: HMC set up its wholly owned subsidiary, HMIL. First foreign car manufacturer to establish a manufacturing unit .Factors contributing to Hyundai success in India: ‡ Close study of Indian market. ‡ Company officials carried a complete market research. ‡ They talked to vendors, dealers and customers. ‡ Detailed surveys were carried. The company analyzed the Indian customers and their demands. ‡ Launched Santro instead of Accent. ‡ Technologically superior products. ‡ Innovative marketing strategies.
Marketing Mix of HyundaiProduct ‡ Launched their first B-Segment Car SANTRO. This was a newly designed product for Indian Market. ‡ It had much better features than its competitor car had i.e. ZEN from MUL. ‡ Special Features were added like AC, Heater, Power steering, Power Windows, and Central Locking. In Oct 1999, They launched ³ACCENT´ targeting the Segment category. ‡ Accent had technology and Luxury Of Japanese Mitsubishi Lancer. ‡ Accent was launched in both Petrol and Diesel Versions. It rapidly became 3rd in terms of Market Share. Later In 2002 they launched ³Sonata´ for D-Segment category. ‡ In May 2003 due to increase in competition and Price wars they came up with a Improved version of Santro known as ³Santro Xing´. ‡ In April 15,2004 they launched ³Elantra´ so as to make the D-Segment more accessible. ‡ In Mid 2004 HMIL became the second largest company with its 4 models Santro, Accent, Elantra, Sonata with 19% Market Share. ‡ Finally They Launched Getz in 2004,for Upper B-Segment so that counter the competition imposed by Wagon-R. ‡ And Then Now They have come up with ³i-10 and i-20 and Hyundai Accent Executive´
Price They launched Santro at Rs 2,89,000 much below Zen which was priced at Rs.3,45,000. ‡ They had kept there pricing Based on Customer Value Perception. ‡ Accent was priced at Rs. 5,35,000 much below what Lancer was Priced at Rs.7,80,000 targeting C-Segment. ‡ They launched Accent CRDi at Rs. 7,25,000 much below any one would have expected. ‡ Experts commented ³CRDi technology is a Leap not a Step´. ‡ They launched Sonata at Rs.16,00,000 which was again priced below Honda Accord which was priced at Rs. 17,00,000. Launched ³Elantra´ at Rs.8,69,000 so as to fill up the gap between C and D Segment. ‡ It also competed in terms of Value for Money with Toyota Coralla , Skoda Octavia, And Optra. ‡ They launched Getz at a price of Rs.4,30,000 so as to have a car between Santro and Accent targeting Upper B-Segment.Place They had chosen India for a Number of reasons: The Indian Economy liberalized and Indian Government De-Licensed the automobile Industry. India had a huge growth potential. Rural Market was Untapped. There was only one player in the market MUL which had cars for B-Segment. ‡ Therefore on May 26,1996 they opened there plant in Irrungattukottai Near Chennai at a cost of 614 million dollars. ‡
It had a capacity to produce 1,20,000 cars and 1,30,000 engine transmission. It got the first mover advantage as it became the first foreign company to set up its Manufacturing Unit in India. Cost of labour is also low in India. Low Manufacturing Cost. Selected Dealers who could react fast to changing market needs. In Mid-2003 HMIL decided to Tap Rural Market. They had less capacity of production in India as compared to MUL.Promotion Since it was a new Brand they emphasized more on Promotion ‡ Santro promotion was handled by ³Saatchi & Saatchi´ ‡ Santro was Promoted in 4 phases as explained by the videos. ‡ It was a campaign that used Humor to remove ignorance about Hyundai. ‡ They also launched a ³New Customer Satisfaction Campaign´ ‡ Promotion of Accent was done more by Print Media than on Television. ‡ Accent was positioned with a baseline ³The Next Step´. Accent Promotion was handled by ³Grey Worldwide India´ ‡ They used film celebrity again like Preety Zinta and ShahRukh Khan for promotion of the new version of Santro Xing ³The Sunshine Car´. ‡ They conducted Various RoadShows in Rural Market to promote Santro. ‡
Accent Advertsiment showed a Young man driving Accent CRDi. ‡ In order to promote there brand more they tied up with PNB for financing of there cars.
Objective of the studyTo find the customer awareness of our brand in our target market.To find out market share of both the companies.To assess the level of satisfaction of customer for both the brand.To study the market promotion strategies of both the brand
RESEARCHMETHODOLOGY a) Research Concepts b) Opted methodology
RESEARCH CONCEPTSRESEARCH Research in common parlance refers to a search for knowledge. One can also defineresearch as a scientific and systematic search for pertinent information on a specific topic. Thuswe can take research as an art of scientific investigation. The purpose of research is to discoveranswers to questions through the application of scientific procedures. The main aim of researchis to find out the truth which is hidden and which has not been discovered as yet.Different basic types of research are:(i) Descriptive vs. Analytical: Descriptive research includes surveys and fact finding enquiries of different kinds. In Analytical research, on the other hand, the researcher has to use the facts or information already available, and analyze these to make a critical evaluation of the material.(ii) Applied vs. Fundamental: Applied research aims at finding a solution for an immediate problem facing a society or an industrial / business organization, whereas fundamental research is mainly concerned with generalizations and with the formulation of a theory.(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to the phenomenon that can be expressed in terms of quantity. Qualitative research, on the other hand is concerned with qualitative phenomenon i.e., phenomenon relating to or involving quality or kind.(iv) Conceptual vs. Empirical: Conceptual research is related to some abstract ideas or theory. It is used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. While, Empirical research relies on experience or observation, often without due regard for system and theory.
Significance of Research The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. Research provides the basis for all government policies in our economic system. It has its special significance in solving various operational and planning problems of business and industry. It is equally important for social scientists in studying social relationships and in seeking answers to various social problems.Research Methodology Research methodology is a way to systematically solve the research problem. It can betaken as a science of studying how research is done scientifically. It not only includes researchmethods but also considers the logic behind the methods we use in the context of our researchstudy and also explain why we are using a particular method or technique, so that researchresults are capable of being evaluated either by the researcher himself or by others.Further it is equally important to select an appropriate method for a particular research as todevelop new methods. There is also a need to understand the assumptions underlying varioustechniques and also to know the criteria by which it is to decide that certain techniques andprocedures will be applicable to certain problems and others will not.Also the term research and scientific methods are closely related. The scientific methodsattempts to achieve a systematic interrelation of facts by experimentation, observation, logicalarguments from accepted postulates and a combination of these three in varying proportions. Inscientific method, logic aids in formulating propositions explicitly and accurately so that theirpossible alternatives become clear.
Research ProcessResearch process consists of series of actions or steps necessary to effectively carry out researchand the desired sequencing of these steps. The following order concerning various steps providesa useful procedural guideline regarding the research process:Formulating the research problem,Extensive literature survey,Developing the hypothesis,Preparing the research design,Determining the sample design,Collecting the data,Execution the project,Analysis of data,Hypothesis testing,Generalizations and interpretations, andPreparation of the report.SamplingA researcher must have to decide the way of selecting a sample or popularly known as design.Samples may be either probability samples or non-probability samples. With probability sampleseach elements has a known probability of being included in the sample but the non-probabilitysamples do not allow the researcher to determine this probability.
Probability samples are those based on simple random sampling, systematic sampling, stratifiedsampling, cluster / area sampling whereas non-probability samples are those based onconvenience sampling, judgment sampling and quota sampling techniques. These are describedas:Deliberate sampling: This sampling method involves purposive or deliberate selection ofparticular units of the universe for constituting a sample which represents the universe.Simple Random sampling: In this type of sampling each & every item in the population has anequal chance of inclusion in the sample and each one of the possible samples, if finite universe,has the same probability of being selected.Systematic Sampling: An element of randomness is usually introduced into this kind ofsampling by using random numbers to pick up the unit with which to start.Stratified Sampling: In this technique the population is stratifies into number of non-overlapping sub populations or strata and sample items are selected from each stratum.Quota Sampling: To avoid high cost of taking samples from individual strata, interviewers aresimply given quota to be filled from different strata, the actual selection of items for samplebeing left to the interviewer‟s judgment.Cluster / Area Sampling: Cluster sampling involves grouping the population and then selectingthe groups or the clusters rather than individual elements for inclusion in the sample. Areasampling is similar to cluster sampling and is often talked about when the total geographical areaof interest happens to be big one.Multi-stage sampling: Under this technique the first stage may be to select large primarysampling units such as states, then districts, then towns, and finally certain families with in thetowns. This technique is meant for big enquiries extending to a large geographical area.Sequential Sampling: In this complex sample design the ultimate size of the sample is not fixedin advance but is determined according to mathematical decisions on the basis of informationyielded as survey progresses. It is usually adopted under acceptance sampling in the context ofstatistical quality control.
OPTED METHODOLOGY A research design specified the procedure & method for conducting and controlling theresearch project. It is the specification of methods and procedure for acquisition of theinformation needed. It is the overall pattern or framework of the project that stipulates whatinformation is to be collected from which sources by what procedure. Generally a researchdesign is a blue print of the research. The research study must explicitly state its plan aboutcollection and analysis of the data.RESEARCH DESIGN: - The type of my study is Descriptive, as the needs of employeetowards training is not an apparent phenomenon, that‟s why it is required to study it in depth andexplore the different parameters for needs of training.SAMPLING is the act, process, or technique of selecting a suitable or representative part ofpopulation for the purpose of determining parameter or characters or the whole population. Ihave used Simple Random Sampling for this research.Data Collection: - Primary & Secondary Data. 1. Primary Data:- It is collected through a structured questionnaire having questions on various aspects of training. It is based on the objectives set for the study. 2. Secondary Data: - It is collected from Magazines, Books and Websites of company.Sample Size: - Though I have proposed to have a size of 100 who had cooperated andsupported me in filling my questionnaire and thereby provides me the data.Sample Domain: -Bareilly.
1. What is the First thing, which comes into your mind when you think about Santro and Zen? Data Received Answer Value %age Small car 50 50 Affordable 30 30 Mileage, Average 20 20 And Fuel Economy value 20 small car 50 affordable 30 Mileage, Average And Fuel Economy Out of 100 as shown in data when the people listen about santro and zen the first think,which comes in their mind that is small car (50%) then affordable (30%) in the end Mileage,Average And Fuel Economy (20%).
2. What do you find most important when buying a car? Data received Answer Value %age Brand 25 25 Quality 20 20 Maintenance cost 10 10 service 25 25 Guarantee 20 20 value 20 25 brand quality 25 maintenance cost 20 service 10 guarantee In the table we can see that when the people buy a car a lot of things they saw in a car as brand, quality, maintenance cost, service and guarantee. As shown in table we can see 25% people think about brand 20% think about quality 10 about maintenance cost 25 about services and last 20 about guarantee.
3. Which brands of small cars would you prefer as of today? Data received Answer value %age Santro 50 50 Zen 50 50 value 100% 80% 60% value 40% 20% 0% santro zen As a small car people prefer both santro and zen because both are small car of Hyundai and maruti. As shown in table 50% people think about santro and last 50% people think about zen as a small car.
4. Instead of purchasing a Zen, will you prefer to go for the Santro? Data received answer value %age yes 40 40 no 60 60 value 40 yes 60 no As shown in table we can see there is 60% people don‟t want to change their zen car but 40% people who want to change their car instead of zen and want to purchase santro.
5. Which feature of Zen attracts you most, that inspires you to go for Zen? Data receivedanswer value %agecolour 25 25design 75 75 value 25 colour 75 design 25% people attract with colour but there is a 75 % who are attracted with its design. So we can see here that 75% people think that its design that inspires them to go for Zen
6. Which colour of Santro would you prefer? Data received answer value %age Blue 10 10 Red 15 15 White 55 55 black 20 20 value 60 40 20 value 0 blue value red white black As shown in table 10% people like blue colour, 15% people like red colour, 55% people like white colour and 20% like black colour in santro car. So here most of the people which want to purchase a white santro.
7. For what purpose would you like to use Santro? Data received Answer Value %age Personal use 60 60 Office use 30 30 others 10 10 value 60 40 20 value 0 value personal use office use others 60% people uses santro for their personal use and 30% uses for office use and less 10% for other uses. As shown in table we can see most of the people uses santro for their personal use .
8. Do you think Zen is peoples car? Data receivedanswer value %ageyes 85 85no 15 15 value 15 yes no 85 As shown in table we can see out of 100 people 85 % people think that zen ispeoples car.Brand, Quality, Maintenance cost, Service and Guarantee they get everything in zen .
8. Will you recommend Santro to your friends and relatives? Data received answer value %age yes 75 75 no 25 25 value 25 yes no 75 Out of 100 75 % people think that they recommend santro to their friends and relatives. less 25% against that. As shown in table most of the people want to recommend santro to their friends and relatives.
10. Which kind of adv. attracted you to Santro and Zen? Data receivedanswer value %agenewspaper 20 20television 45 45magazine 25 25internet 10 10 value 10 20 25 newspaper television magazine 45 internet As shown in table most of the people attracted with television advertising after that magazine . We can see 20% attracted with newspaper 45% attracted with television 25 % attracted with magazine and last 10% with internet.
Findings1) Out of 100 as shown in data when the people listen about santro and zen the first think ,which comes in their mind that is small car (50%) then affordable (30%) in the end Mileage, Average And Fuel Economy (20%).2) In the table we can see that when the people buy a car a lot of things they saw in a car as brand, quality, maintenance cost, service and guarantee. As shown in table we can see 25% people think about brand 20% think about quality 10 about maintenance cost 25 about services and last 20 about guarantee3) As a small car people prefer both santro and zen because both are small car of Hyundai and maruti. As shown in table 50% people think about santro and last 50% people think about zen as a small car.4) As shown in table we can see there is 60% people don‟t want to change their zen car but 40% people who want to change their car instead of zen and want to purchase santro.5) 25% people attract with colour but there is a 75 % who are attracted with its design. So we can see here that 75% people think that its design that inspires them to go for Zen.6) As shown in table 10% people like blue colour, 15% people like red colour, 55% people like white colour and 20% like black colour in santro car. So here most of the people which want to purchase a white santro.7) 60% people uses santro for their personal use and 30% uses for office use and less 10% for other uses. As shown in table we can see most of the people uses santro for their personal use .8) As shown in table we can see out of 100 people 85 % people think that zen is peoples car. Brand, Quality, Maintenance cost, Service and Guarantee they get everything in zen.
9) Out of 100 75 % people think that they recommend santro to their friends and relatives. less 25% against that. As shown in table most of the people want to recommend santro to their friends and relatives.10) As shown in table most of the people attracted with television advertising after that magazine . We can see 20% attracted with newspaper 45% attracted with television 25 % attracted with magazine and last 10% with internet.
LIMITATIONS1. Employees were not available at a common time as they are working in different shifts. I was not in a position to approach employees working in the night shift.2. There were some problems in collecting primary data; the employees were hesitating in giving their personal information and time.3. To some extent employees were not aware about the concept of organizational climate.4. Some of the employees were not interested in filling the questionnaire.5. Some of the old employees were not want to expose the real image of the organization.6. Some of the employees were not permitted by their seniors to fill the questionnaire.7. Some of the employees were not able to give the answers because of lack of proper knowledge and other activities in the organization.8. Employees were taking much time to agree for filling the questionnaire.
ConclusionThe plus points of Zen are the latest technological interventions, build quality, maneuverability,and comfort ability just like its elder cousin‟s i10 and Santro. Santro is still taller than Zen butZen is wider than Santro. All you are getting is a car of your dreams at an unbeatable price.there is a huge price difference between the two cars, add to this the more refined K10 engine inthe Alto which further makes the need to bridge the gap difficult, but I will still go ahead andrecommend the Zen and here are the reasons whyTrust – Both Hyundai and Maruti are very good. As a matter of fact, Hyundai as a companytoday is the worlds 5th largest car manufacturer. I don‟t see a problem there.Both Offer good mileage – ARAI for Alto is close to 18and for Zen its 21.1, however, real lifemileage would definitely be much lower, you can safely discount the ARAI figures by a min 30-35 % - Eon has slight edge, but both equally matchedResale after 5 years – One big trend in car industry is, that cars are becoming more goodlooking/stylish and getting loaded with features, for example who would have thought of Airbagsin a small hatch. At the time of resale these would be important factors of considerationdefinitely post 4-5 yrs -
BibliographyPhilip Kotler -: Marketing ManagementKothari C.R. -: Research MethodologyNew age international publishers , 2007http://www.google .com
Questionnaire Of Santro And ZenThis questionnaire is prepared to study the project titled “A Comparative Study of MarketingStrategy of Santro and Zen.” (A case of Bareilly City).Your options and suggestions shall bekept confidential and will be used for academic purpose only.Name: __________________________________________Location: ________________________________________1. What is the first thing, which comes into your mind when you think about Santro and Zen? Small car. Affordable Mileage, Average And Fuel Economy2. What do you find most important when buying a car? Brand Quality Maintenance cost Service Guarantee3. Which brands of small cars would you prefer as of today? Santro Zen.4. Instead of purchasing a Zen, will you prefer to go for the Santro? Yes No
5. Which feature of Zen attracts you most, that inspires you to go for Santro? Colour Design6. Which colour of Santro would you prefer? Blue. Red White Black7. For what purpose would you like to use Santro? Personal use Office use Others8. Do you think Zen is peoples car? Yes No9. Will you recommend Santro to your friends and relatives? Yes No10. Which kind of adv. attracted you to Santro and Zen? Newspaper television magazine internet