1.1 PROFILE OF THE INDUSTRY
BIRTH OF CARS
The birth of the car as we know it today occurred over a period of years. It was only
in 1885 that the first real car rolled down on to the streets. The earlier attempts,
though successful, were steam powered road-vehicles.
The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain
speeds of upto 6 kms/hour. In 1771 he again designed another steam-driven engine
which ran so fast that it rammed into a wall, recording the world’s first accident. In
1807 François Isaac de Rivaz designed the first internal combustion engine. This was
subsequently used by him to develop the world’s first vehicle to run on such an
engine, one that used a mixture of hydrogen and oxygen to generate energy.
This spawned the birth of a number of designs based on the internal combustion
engine in the early nineteenth century with little or no degree of commercial success.
In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas
driven engine. In 1862 he again built an experimental vehicle driven by his gas-
engine, which ran at a speed of 3 kms/hour. These cars became popular and by 1865
could be frequently espied on the roads.
The next major leap forward occurred in 1885 when the four stroke engine was
devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they
fell apart. Daimler created his own engines which he used both for cars and for the
first four wheel horseless carriage. In the meanwhile, unknown to them, Karl Benz,
was in the process of creating his own advanced tri-cycle which proved to be the first
true car. This car first saw the light of the day in 1886.
The season of experiments continued across the seas in the United States where Henry
ford began work on a horseless carriage in 1890. He went several steps forward and in
1896, completed his first car, the quadricycle in 1896. This was an automobile
powered by a two cylinder gasoline engine. The ford motor company was launched in
1903 and in 1908 he catapulted his vehicle, model t ford to the pinnacle of fame.
Continuing with his innovations, he produced this model on a moving assembly line,
thus introducing the modern mass production techniques of the automobile industry.
The modern car, therefore comes from a long list of venerated ancestors, and its
lineage will, hopefully grow longer as we progress!
With the invention of the wheel in 4000 B.C., man’s journey on the road of
mechanized transport had begun. Since then he continually sought to devise an
automated, labour saving machine to replace the horse. Innumerable attempts reached
conclusion in the early 1760s with the building of the first steam driven tractor by a
French captain, Nicolas Jacob Cugnot. It was however left to Karl Benz and Gottlieb
Damlier to produce the first vehicles powered by the internal combustion engine in
1885. It was then that the petrol engine was introduced, which made the car a
practical and safe proposition. The cars in this period were more like the cars on our
With cars came the era of speed. The first ever land-speed record was established
about a 100 years back, in 1898. Count Gaston de Chasseloup-Laubat of France drove
an electric car (in Acheres near Paris) at a speed of 39.24 miles per hour. This flagged
off the era of ‘wheels racing’, which lasted till 1964, after which jet and rocket
-propelled vehicles were allowed. Then onwards, it has been one big journey...on the
INDUSTRY AS WHOLE
Post 1991, this country has witnessed unprecedented all round development due to
liberalization. It has witnessed a flood of foreign companies who have set up their
operations. The monopoly, earlier enjoyed by Indian companies has been offset. The
entire marketing scenario has changed from being a sellers’ market to a buyers’
market. It is necessary for all companies to understand the needs of their customers
lest they may be out of business. Customer satisfaction and retention is the norm in
this dog-eat-dog market competition and cutthroat competition.
This research tries to give an insight into the present market scenario of passenger
cars , pan India taking into consideration the dealers as well as consumers of
HYUNDAI MOTORS INDIA Limited vis-à-vis its major competitors. This research
consists of the database, which was collected during the survey and also the findings
and analysis of the survey conducted during the research.
The research approach consists of primary data collected by survey research method
and secondary data collected from various Internet sites, product catalogues and
business journals. Direct interaction with the concerned people including interview
and questionnaire are the instruments employed during the research.
The research aims at deciphering all the underlying factors considered important by
customers regarding this segment and a comparison of various companies on those
factors so as to provide logical recommendations which would prove useful to
HYUNDAI MOTORS INDIA LIMITED to maintain its competitive advantage in this
segment in times to come.
THE REQUIRED THESIS BASED UPON THE MARKETING STRATEGY OF
HYUNDAI MOTORS INDIA LIMITED .THE THESIS BASED UPON BRAND
AND PRODUCT POSITIOING OF THE HYUNDAI MOTORS IN INDIA.THE
PRODUCT QUALITY, THE BRAND CONSUMPTION IN COUNTRY Hyundai
Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car
manufacturer in India. HMIL presently markets 16 variants of passenger cars in six
segments. The Santro in the B segment, Getz in the B+ segment, the Accent and
Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E
segment and the Tucson in the SUV segment. The Hyundai Verna has bagged some
of the most prestigious awards starting with the Overdrive ‘Car Of the Year 2007’,
CNBC-TV 18 Auto car ‘Best Value For Money Car 2007’ and ‘Performance Car of
the Year 2007’ from Business Standard Motoring
INDIAN AUTOMOBILE INDUSTRY
India has been the scene of some of the most frenetic deal- making, big expansion
announcements, and new car launches in the global auto industry. Consider that in the
last 18 months alone General Motors, Fiat, Honda, Nissan, and Hyundai have
announced Indian investments valued at roughly $1.5 billion. Recent visits by
industry bigwigs such as Fiat Chairman Luca Cordero di Montezemolo, Renault-
Nissan alliance Chief Executive Carlos Ghosn, and GM boss G. Richard Wagoner,
Jr., who arrived in New Delhi on April 16 to help launch the company's Chevrolet Sn
early April, Ghosn was in India to inaugurate a plant in Nashik jointly run by Renault
and Indian carmaker Mahindra & Mahindra that will produce an economy car called
the Logan. The base model will cost $9,700, but Ghosn also hopes to launch an ultra-
cheap model in India -- that will retail for about $3,000 -- later in the decade. Park
locally underscores the new focus on India's high-speed car market.
Right now, India's entire industry -- local producers and transplants -- collectively
manufacture about 1.4 million vehicles a year. That's expected to double by 2008, and
if it does, India will surpass Britain and Canada in total car production. However, it
still will be light years behind China, which is on track to hit 10 million or so in 2007.
And India's growth dynamics look robust. It is home to a young population, and has
rising income levels, an underserved rural market, and an economy galloping along at
9%-plus growth rates. Duties on small cars fell from 24% to 16% in 2006, though
taxes remain somewhat high compared to China. The government hopes to see India
auto sales jump from last year's $34 billion to $145 billion in 2016. If they do, the
domestic auto industry could represent about 10% of India's gross domestic product.
Gathering small-car making expertise in India is key for automakers both to tap a
thriving market for economy cars -- and also to export that know-how to other
markets. By 2012, the market for vehicles priced under $10,000 is likely to reach 18
million cars, or a fifth of world auto sales, according to Roland Berger Strategy
Consultants. That's up from 12 million today.
India also boasts a cheap, but high-quality labor force with considerable engineering
and manufacturing skills -- and the country is starting to build up big auto components
and engineering and design outsourcing sector that is attractive for international
players. The India auto parts business is expected to more than triple in annual
revenues from $12 billion to $40 billion by 2014.
With 11 players in passenger car segment, the total installed capacity is of the order
of over a million vehicles. More than 15% of the total capacity remained unutilized
in 2003-04. Two players, namely, PAL Peugeot and Premier Auto, among the older
Indian entities, exited the industry towards the end of 1999-00. Daewoo plant was
closed, General Motors and Tata Motors are involved in taking over some operations.
The scale of operations of Indian car plants is among the lowest in the world,
rendering them uneconomic. The average capacity of an Indian car plant is 40,000
units a year, as against 250,000 in Japan and the US; 125,000 in Brazil and 175,000 in
South Korea. Volumes of 100,000 to 150,000 are considered viable. However, there
are units in India with capacities ranging from 9,000 to 30,000 units a year.
Suzuki Motor Company,
Japan 100% 1982 50.4%
Hyundai Motor Company,
Korea 100% 1996 19.5%
Group None Nil 1945 14.5%
Group None 100% 1940s 3.4%
Ltd Ford Motor Company 84.11% 1995 2.5%
Fiat India None Fiat Auto SPA, Italy 100% 1997 0.9%
Honda Motor Company,
Japan 99% 1995 5.0%
General Motors Corporation,
USA 100% 1995 1.4%
Chry Star None Diamler Chrysler AG 100% 1995 0.2%
India None Volkswagen Group 2001 1.0%
Toyota Motor Corporation,
Japan 88.86% 1997 1.2%
Total investment by the car companies is estimated at around Rs 130 bn with related
component makers chipping in another Rs 40 to 50 bn. At the existing volumes, all
car companies, except Maruti Udyog, will take two to five years to move beyond
sustainable break-even volumes.
The Indian industry now has the presence of global players like General Motors, Ford,
Suzuki, Toyota, Mitsubishi, Honda, Fiat, Hyundai, Mercedes and Skoda. MNCs are
widening their product portfolio, which will further intensify competition. This also
marks the next phase of the Indian auto industry after the sector was opened up.
New players, such as Skoda and Toyota have lined up the market with Octavia (from
Skoda) and Corolla (from Toyota), Honda and Hyundai have come a long way
through City, Accord, Sonata and so on as their prized offerings. BMW is setting up
an assembly plant in Andhra Pradesh.
The car sales in 2003-04 were estimated at over 821,500 vehicles, a 34.3% increase
on the preceding year with car sales at over 611,750 units. The production of
passenger cars in 2003-04 increased to 781,764 units realizing a growth of 40% over
the preceding year.
It is obvious that the market was overwhelmingly skewed in favour of low-end
(priced) cars. The non-linear segmentation is a reflection of the fewer models in the
next price range.
Individual buyers, mostly small entrepreneurs, have outnumbered companies to form
a significant chunk of the car buying population. Most of the car buyers come from
backgrounds such as software and service companies. Individual buyers constitute
roughly 70% of the total demand today, overtaking corporate buyers, who
traditionally represented around 60% of total demand some years back. In the case
of cars like Hyundai's Santro, as many as 95% of its clientele is represented by
Leading brands of cars in India now include: Maruti 800, Esteem, Omni, Zen, Baleno,
Alto Wagon R, Opel Astra, Opel Corsa, Mercedez, City, Accent, Santro, Indica, Fiat
Palio, Sienna, Lancer, Ford Ikon. Lately, while Hyundai entered with Sonata, Honda
came up with Accord. Ford has been contemplating bringing in Mondeo, while GM's
Swing made some healthy waves in its segment. Skoda has introduced its Octavia,
and may follow with Superb to strengthen its presence. Reva Electric Car Co
launched the base version of its Reva electric car in Bangalore and Goa. Lately,
GM has created quite a ripple with its Chevrolet based Optra.
Except for Maruti Udyog JV with Suzuki of Japan and Hindustan Motors tie-up with
Mitsubishi also from Japan, all the earlier collaborations have been diluted and
converted into fully-owned subsidiaries of the global players like GM, Ford, Hyundai,
Daewoo, Daimler Chrysler. Among the operational alliances is the one between DCM
group and Honda in Honda Siel Motors. The new entrants' forays like Skoda are
again entering as wholly-owned subsidiaries.
Based on the long term optimism, new and established entrants in this sector are
introducing new models. As the number of players multiply, the Indian consumer
will have a plenty of variety and choice in the mid-size and small segment. Although
small car category continues to be dominated by Maruti 800 and Alto, Santro and .
Indica, the segment would offer the consumer the choice of pick and choose.
Maruti Udyog is in talks with various diesel engine manufacturers to set up a diesel
engine manufacturing base in India. Maruti is expected to outsource its entire
requirement of diesel engines from the proposed local unit. Peugeot, which supplies
diesel engines to Maruti Udyog for compact car Zen and mid-size sedan, Esteem, is
one of the companies with which Maruti is negotiating, another being Fiat.
The sudden and simultaneous induction of new cars in the segment exposed the
Indian market to severe competition, especially to the well entrenched Maruti 800 and
Zen. Newer technologies have been displayed by these entrants. These are aimed at
improved fuel economies and horse-power and at the same time overcoming
stringent emission norms of Western Europe. Other hi-tech features include multi-
point fuel injection (MPFI) system, collapsible steering, independent suspensions for
the wheels, side impact bars, roof stiffners, child-proof locks, disc type front brakes
and several other features hitherto unknown.
In the changing automobile scenario, the market demand is composed of replacement
demand, new entrants to the market, graduation of two-wheeler owners to the car
market and shift of the small car owners to the medium and premium car segments.
The structure of the market by product variation is also witnessing a total
metamorphosis. The erstwhile models have been of higher engine capacity but are
relatively low priced. Presently, the bulk of the demand is for engine capacity below
1000 cc. The middle segment, which is more price-oriented, is large in terms of value
but the market in quantum is much too small. As indicated, the mid-priced premium
segment is witnessing a significant upsurge.
The MUV segment consists of vehicles that are suited both for urban and rural areas.
In rural areas where the roads are bad, MUVs can be used as goods carriers and for
public transportation. In terms of the overall share of the vehicle market, the
importance of MUVs is still low as 2.2%. Traditionally, more than 70% of the
vehicles sold by Mahindra & Mahindra (M&M), the main player in this segment,
went to tour operators and customers who bought it for business purposes. Even the
balance 30% picked up are primarily by buyers from small towns and rural areas, who
wanted a vehicle that could carry goods.
However, during the past couple of years, there has been a qualitative shift in demand
profile of this category. The introduction of the Toyota Qualis changed consumer
perceptions about this category. In urban areas, Qualis has tapped the latent demand
for a large family car, thus blurring the distinction between the passenger cars and
MUVs. The changing consumer perception has been further reinforced by instant
success of Scorpio launched by M&M.. In a bid to tap this growing market, MUL has
also launched its first MUV, Versa. With other players such as Hindustan Motors and
Ford planning to launch the products in this segment, competition is expected to
MUV's: Market Shares
Company Share (%)
Maruti Udyog 2%
Hindustan Motors 1%
Toyota Kirloskar 26%
Mahindra & Mahindra 46%
Bajaj Tempo 4%
Environmental Issues: -
Emission control is important when it comes to tackling pollution levels on city roads.
In the recent past, the issue has become very important for the domestic automobile
industry. Tracing back to where it all started, we find that the first emission norms
were introduced for petrol vehicles in 1991 and for diesel vehicles in 1992.
From April 1995, fitting catalytic converters was made mandatory in new petrol
driven passenger cars sold in the four metros of Delhi, Calcutta, Mumbai and
Chennai. For this to happen, petrol pumps supplying unleaded petrol were opened
in these cities.
1.2 PROFILE OF THE COMPANY
Headquarters: Seoul, Republic of Korea (231, Yangjae-Dong, Seocho-Gu)
Industry Sector: Manufacturing
Major Product: Automobiles
Production: 1,677,818 units per year (CKD Excluded)
Sales: 27,472 billion Korean Won*
Assets: 24,700 billion Korean Won
Net Income: 1,804 billion Korean Won
Chairman & CEO: Mong-koo Chung
Date of Establishment: Dec. 29, 1967
* Production: production total from domestic (Ulsan/Asan/Jeonju) and overseas
(India/Turkey/China) in 2004
* Sales, Assets and Net income: Hyundai Motor’s Independent Financial Standard
for fiscal year 2004
*1 US $ = 980 Korean Won.
Hyundai Motor India Limited (HMIL) *
Wholly owned subsidiary of Hyundai Motor Company, South Korea
Industry Sector: Manufacturing
Major Product: Automobiles
Production Capacity: 280,000 units per annum
Total Sales: 252,851 units in 2005
Domestic Sales: 1,56,291 units in 2005
Export Sales: 96,560 units in 2005
Net Income: 432,282 million Korean Won (414143 thousand US$)
Chairman & CEO: Mong-koo Chung
Year of Establishment: 1996
* Company History is given in Exhibit
(Business Purpose) (Refer for detailed Mission in Exhibit)
Mission of the Parent company "Hyundai Motor Company"
The relevant business purposes of the Company are as follows:
To manufacture and sell all kinds of vehicles and component parts thereof.
To manufacture and sell special purpose vehicles and component parts thereof.
To engage in the export and import business.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai
Motor Company, South Korea and is the second largest and the fastest growing car
manufacturer in India. HMIL presently markets 30 variants of passenger cars in six
segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C
segment, the Elantra in the D segment, the Sonata Embera in the E segment and the
Tucson and Terracan in the SUV segment.
Established in 1967, Hyundai Motor Co. has grown into the Hyundai Kia Automotive
Group which includes over two dozen auto-related subsidiaries and affiliates.
Employing over 57,000 people worldwide, Hyundai Motor posted US$26.1 billion in
sales in 2004 (on a non-consolidated basis). Hyundai Motor vehicles are sold in 193
countries through some 5000 dealerships and showrooms. Hyundai Motor Co. is a
sponsor of the 2006 FIFA Germany World Cup.
Hyundai Motor India has said it will begin production at its second plant in the
country on October 15, 2007, where it aims to reach a capacity of 300,000 units
Hyundai India aims to export at least 200,000 cars next year. The carmaker, which
exports Santro and Accent cars made at its factory near Chennai in southern India to
regions such as Europe, exported 115,000 cars in 2006 and plans to export 350,000
cars in 2009.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY)
2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a
growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales
grew by 17.4 percent, with exports of 113,339 units. Last year, HMIL had clocked in
147,636 units from January to June. Compared to last year (‘06), the sales grew by
9.3% to 161,296 units for the same period (Jan- June ’07). Out of this 100,925 units
are sold in the domestic market while 60,371 units are exported. Last year the
domestic market had accounted for 91,273 units and the exports stood at 56,363 units
The export registered a growth of 7.1 % to while the domestic market volume has
increased by almost 11%.
Commenting on the sales this month Arvind Saxena, VP, Marketing and Sales said
“In spite of hike in interest rates, Hyundai has still managed to grow in terms of
volumes. We are sure the next few months will see stronger retail as we overcome our
capacity constraints with the new plant starting operations later this year”.
The segment-wise cumulative sales in the month of June 2007 are as follows: A1
Segment —23,558 units; A2 Segment – 3,983 units; A3 Segment — 24 units; A4
Segment — 67 units; and SUV Segment — 21 units. At present “HMIL” have 167 in
January 2007, dealers all over India at present stage
Hyundai today enjoys a market share of around 10% and is looking at the doubling
that figure. Given the Indian market's response to the Santro, the company seems to
be well on course....
Best customer service
Best quality products
Best value for people.
All over “HMIL” launched the second nation wide free car care clinic campaign,
offering our loyal customers free check-ups for keeping their vehicles in best of
condition. Hyundai involved about 310 Hyundai dealers’ workshops across the
Segment Name Variants Price
B Santro XK(Non-ac,
2,82,973 to 3,92,974
B+ Getz GLE, GVS, GLS, GLX 4,21,000 to 5,18,518
C Accent GLE, GLE 1.6L, Viva,
Viva CRDi, CRDi
5,29,000 to 7,14,714
D Elantra GT, GLS, CRDi 8,53,793
E Sonata 2.4 M/T, 2.4 A/T(both are
in fabric/ leather)
SUV Terracan GL 2,059,151
Tucson Tucson 14,62,999
Modeled on the Hyundai Atos, the Mercedes A140 and Suzuki's Wagon R,
and then customized to Indian tastes, the Santro takes the best of all the cars
viz. the driveability of the Atos, the safety & design of the Mercedes A140,
and roominess of the Wagon R.
It claimed to be the leader of its segment since its launch till mid 2004. But in
February 2005, WagonR's sales were higher than the Santro's and in March the
Alto stole, too, the Santro's thunder. The fight for market share goes on with
the launch of new variants and models in the B segment. But on an average,
Santro stands to be the market leader.
It is a mid-size segment car and the pricing strategy varies over the variants
being offered. The XK (non- ac) starts at 2.82 lakhs and the costliest variant is
around 3.92 lakhs. It competes with Maruti’s Zen and Alto, Tata’s Indica and
In response to consumers’ demand for something bigger than B segment cars,
yet smaller than those in the C segment, car manufacturers lined up a new
range of variants. This segment is the B+ segment.
The Getz is one of the most well designed and graceful looking cars from the
Korean Chaebol, especially since the company has tended to conceive cars
that have a "streak of queer beauty" about them.
Its chief competitors are Ford Fusion and Chevrolet Spark. Besides these two
models, Fiat’s Palio and Petra, Opel’s Sail & Corsa, Tata’s Indigo and Ford’s
Ikon Flair also face competition from Getz.
As every model of Hyundai, Getz is also priced premium but at a killer price
amongst its strategic group. Its variants cost from 4.2 lakhs to 5.2 lakhs.
In the mid-size segment, the Accent leads with a market share of 27 per cent,
pitted against the likes of Ikon, Honda City, Corsa, Esteem and the Lancer.
Accent GLS has been positioned as the car that provides power and
performance, while Accent CRDi targets those consumers who are conscious
about the cost per kilometer. The CRDi variant has proven to be a deadly
weapon in performance and against competition.
The competitors are Ford’s Ikon, Honda’s Honda City, Maruti’s Esteem,
Opel’s Corsa, Mitsubishi Lancer and their variants. Accent stood out as the
market leader in its segment most of the time. The pricing has been hiked at
times owing to the rising costs and yet the price varies over 5.29 to 7.2 lakhs.
Aggression is writ clearly across the Elantra's face. This is typically the kind
of design that the young car buyer will identify with. If the Hyundai Elantra's
design does not appeal to the stiff upper-lip gentleman, the features-to-value
equation surely will.
Hyundai has packed the Elantra with electronic gadgetry and loads of active
and passive safety features that the competition has not thought of offering in
their cars. The cars that are competition for the Elantra like the Toyota
Corolla, the Skoda Octavia,, Chevrolet Optra and the Mitsubishi Lancer.
Positioning and pricing have been the key factors for the success of Hyundai's
products. In the case of the Elantra, too, Hyundai has positioned it squarely in
the cusp between the C and D segments. Pricing wise it is in the higher end of
the C segment, at the same time it is as feature rich as the average D segment
Priced at Rs 8.5 lakh for the lower trim GT variant and going up to Rs 10.5
lakh for the CRDi variant, the Elantra is good value for money. The
competition will have a tough time beating this combination of features at this
The country's luxury car market constitutes one per cent of the total passenger
car and MUV market. The section of the population it targets is hence
extremely limited. So Hyundai offers Sonata as a brand by associating the car
with royalty and high-class society. It offers all the features a luxury car can
demand and also establishes itself with a killer low price and decent looks
along with large periods of warranty.
Its chief competitors are Ford Mondeo, Toyota Camry, Honda Accord, Skoda
Octavia, Benz c class, Toyota Corolla, Opel Vectra. The variants of Sonata
have been placed in the range of 13.59 to 14.69 lakhs. The huge advantage of
the pricing strategy Hyundai employed is in terms of the warranty period and
thus the car has been targeted to cut through profits of the other models in this
Hyundai’s most powerful SUV, The Terracan projects a strong masculine
identity that evokes Hyundai’s strategic goal to challenge other entrants in the
medium-heavy 4WD market with a vehicle that weds performance with
comfort, refinement and fresh styling. Terracan’s on-road ride comfort,
refinement and ease of driving have been honed as major Terracan strengths.
The overall look of the SUV is one of a simple, elegantly straight-edged body,
personalized by several highly styled elements.
The chief competitors for it are Mitsubishi’s Pajero, Honda’s CRV, Grand
Vitara, Chevrolet Forrester, Ford’s Endeavor. Its GL variant costs around 20.5
The pricing strategy targets a premium customer who values style and sports
utility as a lifestyle statement. Though an element of value for money exists,
style and aggression drive the flow. The car will be positioned as a value
product targeted at the young, demanding male.
We have had many good SUV’s, but all of them have been petrol-driven; a
diesel-engine, `right-size' luxury SUV was not available. This led to the
genesis of Tucson. The Tucson boasts of a sedan-like monocoque
construction. It holds features fit for a SUV ride and a better performance with
respect to diesel variants in general.
The macho machine comes with a long warranty period. Hyundai made an
effort to provide a lot of premium features without bursting a buyer's budget.
It costs around 15 lakhs but though a value for money proposition has been
offered, the model fails to cater true luxury car features. Hence the pricing
seems to be of concern.
Authorized Service centres.
Emergency Road Service.
The company’s greater focus on the quality of its after-sales service made Hyundai
provide these services, with servicing available at their own authorized centers and
other service points. Hyundai reflects its image of value for money in the service it
offers. In order to deliver the highest value through their products they have set up
more than 70 dealer workshops equipped with latest technology machinery and
international quality press, body and paint shops, across the country.
There are three company-owned outlets called 'Hyundai Motor Plaza' that will serve
as model dealer showrooms and service workshops for the customer. Customer Care
Centres which have specially equipped Santros that can provide emergency service to
all our customers anytime, anywhere have been provided.
DISTRIBUTION STRUCTURE FOR HYUNDAI MOTORS
Target Market Structure:-
Market Segmentation by Category
Premium and Luxury 0.5%
Executive Segment 1.7%
Size and compact 79.7%
Market Segmentation by Geography
Market Segmentation by Price of Car
Over Rs 1.0 mn 0.8
Rs 501,000 to Rs 1.0 mn 3.2
Rs 301,000 to Rs 500,000 49
Under Rs 300,000 47
This table illustrates the geographical and price wise segmentation of the passenger
cars market and the percentage share they account to. Passenger cars are mostly aimed
at urban areas, though a shift to focus on the semi-urban and rural areas is becoming
evident. MUV’s stand to cater to the need of semi-urban areas more precisely owing
to the space and performance features MUV’s offer.
In general, car has always been a status symbol and a convenient & safe
transport utility. Thus the passenger cars are targeted towards income groups which
can afford and mindsets which demand a statement of style. HMIL is targeting
customers in the 25-50 age groups. Hyundai has leveraged on this by providing value
for money products with compact, stylish designs.
Customer Profile & Competitors:-
Name Target Customer Profile Competitors
Budget constrained & budget conscious
buyer; parking space conscious;
a small family; middle income groups.
Maruti Zen, Alto, Tata Indica
and Fiat Palio.
Buyers who needs more Power, an
affordable price, medium size and
trendy look; buyers looking for a good
value for money proposition.
For those who lead their own life and
create their own benchmarks.
Fiat Palio and Petra, Opel Sail
& Corsa, Tata Indigo and Ford
Demands power and performance; is
conscious about the cost per kilometer.
Requires a medium size at reasonable
prices with a blend of fuel efficiency,
power and stylish look.
Ford Ikon, Honda Honda City,
Maruti Esteem, Opel Corsa,
High income groups who value
performance and command a luxurious
style of living.
Toyota Corolla, Skoda
Octavia, Chevrolet Optra and
High income and elegant class.
Demand a status symbol of luxury
which conveys the stylish living the
Ford Mondeo, Toyota Camry,
Honda Accord, Skoda Octavia,
Benz C class, Toyota Corolla,
Terracan a premium customer who values style Mitsubishi Pajero, Honda
(SUV) and sports utility as a lifestyle
statement. young, demanding male;
high income group.
CRV, Grand Vitara, Ford
A merge of luxury, comfort, compact
proportions and fuel efficiency of
sedans with the handling, build and feel
of a sport utility vehicle (SUV) targets
at a customer who demands such a
crossover with a good amount of inner
HMIL has 4 regional offices in India, at Delhi, Mumbai, Chennai and Kolkata.
HMIL’s fully integrated state-of-the-art manufacturing plant is located near Chennai
which boasts some of the most advanced production, quality and testing capabilities
in the country.
In continuation of its investment in providing the Indian customer global technology,
HMIL has announced plans for its second plant. Hyundai Motor India Ltd (HMIL)
has now planned to increase its production to 600,000 units per year by 2007 from
400,000 units as planned earlier. The announcement was made on Feb10,2006 by
Hyundai Motor Company’s (HMC) Chairman Mr. Chung Mong-Koo during his visit
The existing plant capacity is 280,000 units per annum which will be increased to
300,000 units. The second plant will add another 300,000 units, which is under
construction and expected to be completed by 2007. The plant will be built on a 2.1
million square meter site adjacent to the existing facility with an investment of $450-
$500 million on its new integrated facility. HMIL plans to expand its dealer network,
which will be increased from 157 to 200 in 2006.And HMIL’s service network will be
expanded to over 1,000 in 2006.
The details of the locations of the - Regional offices
Authorized Service Centres
HSCP (Hyundai Service Center point) are in the exhibits.
1.3 COMPETITION ANALYSIS
Comparison on the market share, export-prospects of Indian Automobile
Maruti Udyog 2,69360 2,91,182 52.2 8.1 23,043
89,075 1,07, 066 19.2 20.2 68,374
Tata Motors 95,402 24,348 16.6 -2.7 12,105
Honda Siel Cars
23,186 24,348 4.4 5.1 31
Ford India Pvt. Ltd 15,026 10,512 1.9 -30% 9,928
From its inception Maruti has been in only in one line of business, car manufacturing.
The company manufactures passenger cars at its factory in Gurgaon, Haryana. Maruti
enjoyed a dream run in the pre liberalization era enjoying a market share of over 80%.
But with increased competition in the car market its market share has currently
dropped below 60%. Its first product, Maruti 800 was launched in 1983. The car was
launched as a "people’s car" with a price tag of Rs40, 000. This changed the industry's
profile dramatically. Maruti 800 was well accepted by middle income families in the
country and its sales increased from 1,200 units in FY84 to more than 200,000 units
in FY99. However in FY2000, this figure came down to 189,184 units, due to rising
competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. In 1985,
the all-terrain vehicle Gypsy was launched. The Maruti 1000 was launched in 1990
and the Zen in 1993. To counter increasing competition the company has launched a
series of new models and plans to launch one new model every year. The present
models include the 800cc small car, Omni, Esteem, Zen, Alto, Wagon –R, Gypsy,
Baleno and Versa
Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint
venture between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture
HONDA passenger cars in India. The company is ISO 9002 & ISO 14001 certified.
The plant was set up in 1997 with an investment of Rs. 450 crores (paid up capital Rs.
360 crore) and in 2005 the investment stood at Rs. 800 crores. Their product range in
India includes the Honda City ZX, Accord and CR-V. City ZX is today recognized as
one of the most successful car brands in the country. It is strongly associated with
durability, reliability, quality and fuel-efficiency. City ZX, the latest version of the
City, including the VTEC version, was introduced on October 5, offering enhanced
power and style.
In addition to the City ZX, Accord and CR-V models made them a premium segment
leader in the Indian passenger car industry.
Honda is operating only in segment D cars i.e. the premium segment.
Tata Motors Limited is India's largest automobile company, with revenues of Rs.
24,000 crores (USD 5.5 billion) in 2005-06. It is the leader by far in commercial
vehicles in each segment, and the second largest in the passenger vehicles market with
winning products in the compact, midsize car and utility vehicle segments. The
company is the world's fifth largest medium and heavy commercial vehicle
manufacturer. Training to the employees is provided by the vendors only. Showrooms
on their part are providing incentives to the car sales executive for promoting
accessory. They also deal in only genuine accessory approved by Tata. They provide
door-step facility to the customer when it is required.
Toyota Genuine Accessories are manufactured to the exact specifications of each
individual Toyota model. This means they fit precisely and conform to every contour
of the vehicle. Toyota Genuine Accessories are designed, tested and manufactured to
strict Toyota global standards. This quality and reliability is supported with up to a 3
year, 100,000km warranty.
LATEST EVENTS DONE BY HMIL
Hyundai Motor to Roll out CNG Santro
Hyundai Motor India (HMIL) plans to introduce a factory-fitted CNG kit version
of its popular passenger car Santro with the option of petrol as a second fuel.
Hyundai will roll out the CNG version of the Santro from it's existing plant in
Chennai by the end of 2007 or early 2008.
Hyundai Motor Co to make 300,000 hybrid cars a year-
Carmaker Hyundai Motor Co plans to make 300,000 gasoline-electric or diesel-
electric powered vehicles by 2015 as demand for more fuel-efficient cars is rising.
Hyundai sales up 14.1 per cent in Sept-
Hyundai Motor India achieved a growth of 14.1 per cent in the domestic market in
September 2006, selling 16,415 vehicles during the month. Hyundai's cumulative
sales during the month were 26,492 units a growth of 11.5 per cent, over
Overseas sales in September stood at 10,077 units, a growth of 7.5 per cent over
the same month in the previous year. Hyundai Verna, launched in the last week of
September 2006, has sold 2,043 units in the first five days. The segment-wise
cumulative sales in September 2006 are: A2 segment: 22,409 units, A3 segment:
3,887 units, A4 segment: 147 units, A5 segment: 22 units, SUV segment: 27 units.
Hyundai Motor betters its brand value
Hyundai Motor Company has reported a 17-per cent appreciation in its brand
value, emerging 75th in the latest survey of world's leading brands, jointly
conducted by branding consultancy firm Interbrand and the Business Week
The Korean automaker Hyundai Motor raked 84th in its debut appearance on the
Best Global Brands list last year.
The 17-per cent appreciation in brand value of Hyundai makes it the fastest
growing automotive brand and places it among the top five biggest gainers in
brand value. Hyundai, with an estimated brand value of $4.1 billion, has also way
ahead of its competitors. Hyundai has been making continuous improvements in
the quality of its vehicles, which in turn has fueled a steady increase in sales and
customer confidence in the brand. In fact, Hyundai's sales have been built on a
balanced management of its brand value and marketing. The group sold 3.7
million vehicles in 2005 and ranked the sixth largest automotive manufacturer in
the world. Hyundai includes over two dozen auto-related subsidiaries and
affiliates. Hyundai Motor, which employs over 68,000 people worldwide, posted
$27.38 billion sales in 2005. Its vehicles are sold in 193 countries through some
5,000 dealerships and showrooms.
Hyundai ramping up its dealership network
With Hyundai Motor India Ltd. expecting its second plant expected to go into
operation soon; the company is now looking to speedily ramp up its dealer
network to push sales for the increased production.
HMIL reportedly had 167 dealers in January 2007, and plans to expand its
network to 250 by December.
New dealerships are likely to follow the proven format, with sales, services and
spares facilities housed together.
The company has been witnessing rather flat sales over the past few months,
though it has a healthy stable of cars, which include the Getz, the Santro, and the
Verna. The lacklustre sales are reportedly attributed by the company to production
capacity constraints, as a result of which domestic sales suffered, and even export
orders saw some backlogs.
Hyundai October sales up 71 per cent
Hyundai Motor India Ltd (HMIL) announced yesterday that the company's sales
grew by 71 per cent at 22,704 units. The company sold 19,007 units in the
compact car segment, 3,503 units in mid-size car category, 152 units in the
premium mid-size car segment and 23 units in the luxury car segment, a company
statement said. HMIL, Indian arm of the Korean automaker, sold 19 units of
sports utility vehicle 'Terracan'.
Hyundai targets export earnings of Rs.2, 700 crore for the fiscal
Hyundai Motor India Ltd expects to export 95,000 cars in the year against 70,000
last years, according to company officials. With about Rs1, 325 crore in export
earnings in the first six months of this year, the company is confident of ending
the year with an export income of Rs2, 700 crore, up from Rs1, 700 crore last
year. Of the 1,35,165 cars exported from India in 2004, Hyundai Motor India
accounted for 85,000, he said and added that a majority of the company's exports
were going to "the most discerning markets" of Europe and Latin America,
including the Nafta (North American Free Trade Agreement) area of Mexico. This
was the best possible comment on the manufacturing standards of the company
and its vendors, he asserted.
LITERATURE REVIEW & PROBLEM FORMULATION
The conceptual discussion brings into front the factors on which early adopter and late
adopters differ. Some these factors are awareness, media habits, loyalty, age , income,
education, occupational status, risk, variety seeking, and attitude towards change.
Chuan-Fong shih & Alladi Venkatesh his research shows the importance of Diffusion
of Innovation. They suggested the extended model of Diffusion of Innovation. The
research shows that though diffusion process cannot be understood without studying
the nature of adoption, to complete the diffusion study use-diffusion process also
needs to be examined. This research was based on two criteria rate of use and variety
of use. They came out with four typology: intense, specialized, non specialized and
Another research carried out to find the factor, which affects the adoption of Internet
banking. The result of the research shows that internet accessibility, awareness,
attitude towards change, computer and internet access costs, trust in one’s bank,
security concerns, ease of use and convenience are the major factors affecting the
adoption of internet bank services in Malaysia. The demographic difference between
Internet bank users and the non-users were not very evident in the study, particularly
with reference to age and educational background.
Christophe Van den Bulte did research on The Bass Diffusion Model is not a Mixture
of Innovators and Imitators. This paper has shown that the Bass model is all too often
misinterpreted as representing the diffusion of innovations between two different
types of actors, innovators and imitators. Bass (1969) assumed that innovation
acceptance is driven in part by social contagion, and that “the probability that an
initial purchase will be made at [time t] given that no purchase has yet been made is a
linear function of the number of previous buyers”
HMIL’s vision for the future is to be:
“The Leader in the Indian Automobile Industry,
Creating Customer delight and Shareholders wealth;
A pride of India”.
The Five Values identified are as follows:
Fast, Flexible and First mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
MARKETING STRATEGY OF HYUNDAI
In this section we identify the general marketing strategy under which this plan is
being developed. It is very possible that a product will follow more than one strategy,
and it is not in the focus of this study or plan to cover the strategies other products
would sail upon except for the action plan we suggest. It can make the picture clear if
we take note of the following issues:
The mission statement says,
To manufacture and sell special purpose vehicles and component parts
To manufacture and sell all kind of vehicels and components parts
The vision of the organization is
To rank among the world’s top five automakers.
The objectives of the organization speak of
To increase the share in Indian Passenger Cars( includes SUV’s and
To expand its export volumes to America, Europe and Middle East.
The Indian Passenger car industry (excluding MUVs) is growing at 13.4%
(CAGR) and the MUV market is growing at 13.7% (There exists certain
element of doubt on the projected CAGR, due to dependence of MUV
market on certain other factors. CAGR calculated over 10 years data for
passenger cars and for 4 years on MUVs. For clear understanding look in
The cars industry accounts for 50% of automotive sector globally, whereas
it accounts to 15% in India. Indian Car market is the second largest in
terms of growth, after China.
HMIL has now planned to increase its production to 600,000 units per year
PROPOSED ACTION PLAN: LAUNCH A MODEL TO CATER TO THE MUV
The elements of Marketing Strategy are:
Product/ Market Selection:-
HMIL needs to cater to its existing markets from its present product lines. But
HMIL needs to focus on the segment of MUV market. Though launching a MUV
definitely needs certain competencies, they are not much different from what HMIL
has and its parent company already serves to this segment, which makes it far more
easier. By launching a MUV, HMIL would serve to the rural, semi-urban and urban
markets and spread its network more into the roots of Indian market. This is purely a
Market Development Strategy as the product already exists (Hyundai is being
produced in Korean domestic market already), but now it is being offered to the
Indian market. We would discuss the benefits we can associate and the design
specifications of this product in the next section.
Hyundai has always been considered to be a quality product provider and is mainly
associated with Value for Money, premium features at lower prices, stylish & trendy
designs and superior quality. Hyundai has to be priced taking into consideration the
perception customers have about Hyundai.
STRATEGY: Value Pricing retaining the qualities of being Premium Brand.
Objective: To offer high quality product at a competitive price; to enable a budget
conscious buyer purchase the product; to enable many people to buy a new car with
modern levels of safety and environmental protection; to win loyal customers and
retain the existing customers.
“The policy is to hold the price-line at constant levels sans passing on the inflation
effect to the customers.”
HMIL is planning to expand its dealer network from the present 157 to 200 this year
to reach out to semi-urban and rural areas and to increase its market share from the
present 20 per cent. So the objective would be to reach the lucrative regions which
can create huge number of sales. To begin with launching Hyundai in the following
states Punjab, Haryana, Uttar Pradesh, Maharashtra, Kerala and Andhra Pradesh,
where there is a sizeable affluent rural population seems to be a good idea to start on
with. And also as Hyundai would be targeted at being a large family car/ van, we can
head on with launching it at selected urban cities in other regions and the major cities
Positioning campaign: Hyundai needs to be positioned as a large spaced, power
vehicle; as a cargo van which can be used both for Family use and transportation. It
stands to be important to win the customers’ hearts by adding the emotional touch of
being a large family’s car and a very good MPV.
Pre-launch campaign, TV campaigns, print ads, e-resources and certain areas of
wireless/ mobile advertising.
Test rides, Finance schemes, After sales service discounts.
The company plans its raw material requirement from the sales projection, which
was done by the marketing department of the company. At the end of every month,
marketing department creates its budgeted sales for the existing product and new
products. Marketing department creates its budgeted sales by considering demand of
the product, actual sales in the previous month and the sales in the current month of
the previous year.
Production, Planning and Material Control Department (PPMC) is based on the
sales projection and calculates the requirement of the raw material for each
department for each product. PPMC department authenticates raw material issued.
After the PPMC Department calculates the requirement of the raw materials, the
purchasing department places an order to the vendor or supplier for each
department. Then the supplier dispatches the material in the factory premises.
Now the raw material proceeds through the testing process. Here it is checked
whether the raw material is as per the standard quality prescribed by company at the
time of placing an order. At the time of testing they also allocate specific
identification number to each material so that it can be referred at the time of
production, if any defect occurs. Then raw materials are issued to the production
Company is following batch production process. They assign the batch number and
lot number so that if any problem occurs while it is consumed they can detect the
OBJECTIVE AND METHODOLOGY
3.1 OBJECTIVE OF THE STUDY
The basic idea of thesis is to gather more knowledge about automobile
industry of India India's entire industry -- local producers and
transplants -- collectively manufacture about 1.4 million vehicles a
The main objective is to find out marketing strategy of “HMIL” where
we found different attribute of marketing strategies such as, road
demonstration, brand loyalty, market segmentation, brand upgardation
of different products of company which increase the market share of
the company in particular field.
There is very much needed for the automobile sector because it is very
much need to tell about company profile, its products, there marketing
strategy to upgrade there brand loyalty in the automobile sector which
increase there market share. Hyundai motors is making the tradition of
making passenger car fastest growing car after Maruti Suzuki. Hyundai
motors has recorded sale of 299,513 vehicles in the calender year (cy)
2006, an increase of 18.5 percent over cy 2005.
Sample- during the thesis period we have gone through nearly recorded
100 of customers where all of them are satisfied with Hyundai
performance buying of b and c segment of cars.
SIGNIFICANCE OF THE STUDY
For any business venture, marketing and sales go hand in hand.
Opportunities come and go but business comes from the ones, which
are handled properly in terms of leads.
Leads for any new opportunity are very important for it to turn out a
Marketing and sales work hand in hand for leads.
Promotion plays a very important role in both the departments.
Promotion helps us to market a product properly and also helps in
increasing the sale of the product as compared to competitors.
MANAGERIAL USEFULNESS OF THE STUDY
Helps to have sale experience
Helps to deal with different customers
Helps to overcome the objections of the customers
Helps to understand the problems of agents in a broader prospect
It provides a platform where managerial role can be played effectively
SCOPE OF THE STUDY
Deep insights would give me the clear knowledge of strategies adopted
and which would make me a better marketing professional.
Important from a consultant prospective finding loopholes in marketing
strategy of the company if any.
Contribution to the institute and my fellow colleagues and a unique piece
The basic thing which is needed for thesis of Hyundai motors is to increase
market share, increase brand loyalty by providing:
1. Value for money car
2. To implement best technology
3. To provide better customer service
4. to make quality products.
The study conducted to achieve the aforesaid objectives will be both exploratory and
conclusive research in nature. It also involves personal interviews based on the
DATA COLLECTION METHODS:-
The data required for the study is based on:
1. Personal interviews based on pre-decided format of structured undisguised
2. Personal interview with the Company representatives regarding the various
3. Personal interview with the Competitors Company’s representatives regarding
the various data.
The secondary data consists of information collected from:
Published data on AUTOEXPO
DATA ANALYSIS TOOLS:-
Use of scales and graphs for analysis.
Questionnaire design formulation:-
We asked questions to different Hyundai customers and potential buyers as
well. We just wanted to geather information about what they feel to be a
Hyundai car owner and how much satisfied are they with their cars
performence and after sales services.
We asked both open and close ended questions to the customers. We asked
question from different segment car owners. Our sampling size was about 100
peoples which include present owners of Hyundai car and potential buyer.
Survey Area: -We collected all information from various Hyundai showrooms and
service centers (DELHI ONLY)
Time frame :- 6 weeks
We have used following research design in making our project:-
EXPLORATORY RESEARCH DESIGN
It seeks to discover new relationships between several facts..It discovers ideas and
insight.The major purpose of the exploratory research design is to do the clear
identification of the problems.Bigger problems are broken in smaller
segments.Exploratory study is the initial stage of marketing research as it is in a
developing stage.Exploratory research helps in understanding explanations of various
problems of marketing mix.The exploratory study may be used to clarify concepts and
causes of problems It is also useful to test the aplicapility of new policies.It is
dynamic and changes with new ideas and concepts.
CONCLUSIVE RESEARCH DESIGN
It is of two types:-
It helps the marketing executive to arrive at a suitable decision from the
various alternative decisions. The various alternative conclusions and selecting the
most suitable conclusion may be done by it’s one of the forms, Descriptive research
design. In this research design ,only a partial situation is clarified but in case of
experimental research design a alternative is selected. Therfore, the experimental
research design is considered an important conclusive research design.
1. QUALITY ASSURANCE;-
Customers analysis report tells that about 50% says that HYUNDAI driving is good
because of machinery used in the car components. but reaming people says that they
don’t find comfortable with HYUNDAI while driving.
2. INCOME GROUP OF PEOPLE WHO BUYS HYUNDAI:-
The above chart shows that more than 50% of income group of 25,000-30,000
prefer HYUNDAI car to be there first car in the family. Which proves their brand
loyalty and product differentiation from the other cars.
3. PRICE RANGE:-
Majority of the people are satisfied with price range of HYUNDAI where they cant
afford the car they finance the car.
4. HYUNDAI AS PERSONALITY CAR:-
While buying HYUNDAI car more than 50% of people think that it suits to there
personality which upgrade there social symbol in the society especially in women.
5. COLOUR CHOICE:-
Mainly people make choice for colours which suits their personality
6. DEALERS PRICE :-
While purchasing most of the people think that yes their cars match with their
personality while other who did’t agreed ,majority were because of price range.
7. DEALER ATTENDING PROPERLY:-
It is said by the customers that more than 50% of dealers are attaining customers
properly and remaining of them have mixed thought for dealers attending them. many
of the customers are happy with dealers attending to them.
8. HYUNDAI’S COMPARISON WITH OTHER CARS:-
About 30% of people says that HYUNDAI cars the excellent car. If so it is better for
HYUNDAI to capture the big margin of market share in India, which shows the
compatibility of HYUNDAI as comparison to other cars.
9. FAMILY PREFRENCE:-
It has seen that most of the Indian family prefer Santro car from the products of
HYUNDAI which shows the Santro’s demand and it strengthen it’s market share.
The analysis shows that HYUNDAI’S mileage is much better than any other car. this
is mainly because they run very much fuel saving not in highways but also in cities,
which how its better machinery used in car.
11. MARKETING STRATEGY OF HYUNDAI:-
The marketing strategy of HMIL upgarde the brand loyalty of Santro in b segment
where the process of strategy consist of market share, brand promotion among the
people through road demonstration, auto –expos and showroom.
12. HYUNDAI AMONG FAMILY PEOPLE:-
The HYUNDAI is very much popular car among the Indian families, because of its
features, looks, price range, product quality and after sales service which proves there
brand loyalty among the potential customers.
13. HYUNDAI’S STREEING:-
After driving HYUNDAI most of 50% customers find that HYUNDAI steering is
very much comfortable while driving easy to move at 360 angle with power futures
in that. again it proves HYUNDAI as the right choice among the customers in the
FINDINGS AND RECOMMENDATIONS
India has been the scene of some of the most frenetic deal- making, big
expansion announcements, and new car launches in the global auto
India's entire industry -- local producers and transplants -- collectively
manufacture about 1.4 million vehicles a year
Consider that in the last 18 months alone General Motors, Fiat, Honda,
Nissan, and Hyundai have announced Indian investments valued at
roughly $1.5 billion.
Hyundai Motor India, continuing its tradition of being the fastest growing
passenger car manufacturer, registered total sales of 299,513 vehicles in
calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. .
In the domestic market it clocked a growth of 19.1 percent a compared to
2005, with 186,174 units, while overseas sales grew by 17.4 percent, with
exports of 113,339 units. Last year, HMIL had clocked in 147,636 units
from January to June.
the objective of the thesis of increasing the market share and studying
various criteria important to customers has been fulfilled from the primary
and secondary data collected from various sources Hyundai motors can
improve market share, by increasing brand loyalty, giving more ads and
promotions, increasing R&D etc
It is essential for every company to make their image perfect and desire to achieve
customer satisfaction by selling products. i suggest the following recommendations:
Hynduai motors should take appropriate measures for promotional offers
through road shows, auto expos and promotion through dealers so that
there product should reach customers and increase brand loyalty.
Secondly they should increase brand loyalty among potential customers
They should increase print–ads, T.V promotions like commercial
advertisement and through game shows etc
Many of the families always look for the price range, which Hyundai
motors has to improve to attract more customers and retain the potential
Also the mileage of Hyundai cars should be improved not only at
highways but also at cities.
Also Hyundai motors must attract family more so that it can increase sale
and profit margin.
The dealers all over India should attained customers properly and make
follow ups regularly to prevents customer loss and increase sales
The colour choices should be made according to customers choices and
convenience at showrooms.
There is a more preference of small cars observed in metro.
More than 85% are satisfied with the performance of Hyundai cars.
The major reason for dissatisfaction among the least number of dissatisfied
owners is the maintenance cost which they bear.
Majority of the customers want to have some incentives with the purchase of
Hyundai is very successful in India but I think their marketing department
could do a little better.
Hyundai should focus on lower segment cars as there are few cars for that
customer group which is the biggest weekness for Hyundai.
Hyundai car are comparatively costlier than its competitors thus they should
look for some price cuts.
Hyundai should concentrate over some promotional activities to attract
Kotler Philip, "Marketing Management", Pearson Education 2nd
G.Schiffman Leon, Consumer Behavior, Prentice-Hall India 8th
Kotler Philip & Kevin Lane Keller, “Marketing Management”.
D. Perreault William, Jr.& E. McCarth Jerome , “Basic Marketing – A
Global Managerial Approach”.
(Please give your honest opinions in making this survey a great success)
Note: Please tick √ in the appropriate boxes
Q.1 Are you satisfied with the quality assurance of “HYUNDAI ”
2. Very good
Q.2 Which income groups prefer to buy “HYUNDAI CARS” more?
1. 25, 000-30,000
2. 30, 000-35,000
3. 35, 000-40,000
Q.3 Are you satisfied with price range of “HYUNDAI”
1. YES 2. NO
Q.4 Are “HYUNDAI CARS” Looks Match Your Personality?
1. YES 2. NO
Q.5 What Colour You Like offered by “HYUNDAI”?
3. RED WHINE
Q.6 Is dealer is offering you right price for “HYUNDAI”?
1. YES 2. NO
Q.7 Is dealer attending you properly?
2. Very good
Q.8 How do you compare “YOUR CAR” with other cars?
2. Very good
(PLESE MENTION YOUR CAR) -------------------
Q.9 Are your family member prefers “HYUNDAI CAR” for driving?
2. Very good
Q.10 Is “YOUR CAR “giving you right mileage according your expectation?
1. Yes 2. No
Q.11 What do you find about company marketing strategy while purchasing “YOUR
2. Very good
Q.12 Is your family finds “YOUR CAR” as a right choice?
1. Yes 2. No
Q.13 How do you find “HYUNDAI” steering working?
2. Very good
if No suggest new products that HYUNDAI should introduce