TITLE OF THE STUDY:

Competitive advantage of Blue Hyundai and Maruti Suzuki; a comparative study

INTRODUCTION

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent
of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent
market share is the leader of the Indian Automobile market owing to a growing middle class and
a young population. Moreover, the growing interest of the companies in exploring the rural
markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has
13 per cent market share.

One of the largest industries in India, automotive industry has been witnessing impressive
growth during the last two decades. Indian automobile industry has a mix of large domestic
private players such as Tata, Mahindra, Bajaj, Ashok Leyland and major international players
including GM, Ford, Toyota, Honda, Hyundai, etc. To remain in this competitive market on has
to come up different ideas and strategies.

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest car manufacturer and the largest passenger car
exporter from India. HMIL presently markets 54 variants of passenger cars across segments. The
Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20 in the B+ segment,
the Accent and the Verna in the C segment, the Sonata Ember in the E segment and the Tucson
in the SUV segment.

Blue Hyundai was founded in Sep 1998 with a motley team of 22 young members. From one
showroom and one service centre, Blue Hyundai has today grown to be one of the largest
Hyundai dealerships in the country. Sales now peak to over a thousand cars a month and the
network has increased to 4 showrooms and 11 service centers.
Customer Service has been the cornerstone of Blue Hyundai growth story. From being the first
Hyundai dealership to be ISO certified to winning numerous accolades for outstanding sales and
service delivery, Blue Hyundai has set many a benchmark for the industry.

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There motto is, "Drive Home A Relationship", has inspired to provide outstanding service to
their customers over the years.
Competitive advantages are conditions that allow a company or country to produce a good or
service at a lower price or in a more desirable fashion for customers. These conditions allow the
productive entity to generate more sales or superior margins than its competition. Competitive
advantages are attributed to a variety of factors, including cost structure, brand, quality of
product offerings, distribution network, intellectual property and customer support.

Comparative advantage is generated by a firm's ability to produce a good or service at a lower

cost than its competitors. This gives the firm the ability sell its goods or services at a lower price
than its competition or to generate a larger margin on sales. Rational consumers will choose the
cheaper of any two perfect substitutes offered. If the effects of comparative advantage are
partially offset by imperfect substitution, higher margins for the lowest-cost producers will
eventually benefit shareholders through superior returns or provide the company with more
resources for marketing, research and development or administrative infrastructure
improvements to support future growth.

LITERATURE REVIEW:

Arvind Saxena (2010) Director and Board member (marketing and sales), Hyundai Motor India
(HMIL) No company in automobile sector can fight competition on price. Companies need to
have the right product, distribution, CRM and after sales service network to grow.

Shashank Srivastava (2012) GM Maruti Suzuki has mentioned that the consumer is price
conscious and the brand loyalty is diminishing because of the number of options in each segment
moreover the customers are ready to experiment today.

Abhijeet Singh (2011) Tata Motors uses a customer relationship management and dealer
management system (CRM-DMS) which integrates one of the largest applications in the
automobile industry, linking more than 1200 dealers across India.CRM DOS has helped Tata
Motors to improve its inventory management, tax calculation and pricing. This system has also
proved to be beneficial to dealers because it has reduced their working capital cost.

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Abhijeet Singh and Brijesh Kumar (2011) Hero Honda Motors Ltd, is running a program called
Good life Passport to Relationship Reward, with an objective to create an innovative
environment for interaction between Hero Honda and its customers. Members of this program
are given a magnetic card in which all information is stored and this card is swiped when using
any service at a showroom or workshop and it works like a loyalty benefit card.

Oyama (2012) Honda Motor wants to be number one in the Indian market and the company
wanted 30% of Hondas global sales to come from Indian operations by 2020. HMSI have had
issues related to production in the past with most of its models having the longest waiting period
in the country, this reduced in Hondas penetration in the rural market, which is less than a third
of Hero Moto Corp.

Boone and Kurtz (2013) discuss the role of imitability of competitive advantages for long-term
growth prospects of businesses. Boone and Kurtz (2013) propose that low-order competitive
advantages such as cost advantage can be imitated by competitors with access to cheaper
resources. Boone and Kurtz (2013) recommend the adoption of strong brand image and
technological innovation in various business processes for the sources of competitive advantage,
because of higher levels of sustainability of such sources of competitive advantage due to their
difficulty being imitated by competitors.

NEED FOR THE STUDY

Company will come to know what attracts Customers.

Company as well as Dealers of Maruti Suzuki and Hyundai will come to know that which
are the criterias customers look for before buying car.
Company and Dealers will also come to know the future changes which will be require to
satisfy customer needs and wants.

STATEMENT OF THE PROBLEM

Today the company and its products can survive only if they can effectively satisfy the consumer
expectation, as the consumer is the king of the market. Blue Hyundai is a leading auto mobile
outlet near Mysore road, Bengaluru. It has very wide reaching market for its products. Customer

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mind will always change hence a survey is conducted on comparative study of Blue Hyundai and
Maruti Suzuki to know the competitive advantage of Blue Hyundai.

OBJECTIVE OF STUDY

To know the various strategies used by Maruti Suzuki and Hyundai Company to attract
maximum number of customers.
To know which company offers better cars, better after sales services and by which
company cars customers are satisfied most.
To know the demand of Automobiles.
Competition from other car manufacturers.
To know the trend in Market.
To know which car is more demanded by Customers.
Through which strategies maximum customers are attracted.
To know recession effect on sale of cars

RESEARCH METHODOLOGY:
Sampling is a mode of selective representative portion from the entire population of interest for
the study. It is an integral part of research methodology.

SAMPLING:

The method used for sampling is anon random sampling method judgement sampling. The
sample was suggested and approved by the Sr.Executive,marketing, Blue Hyundai automobile
(P) ltd, Bengaluru.

SOURCES OF DATA:

Data can be defined as the quantitative or qualitative values of a variable. Data is thought to be
the lowest unit of information from which other measurements and analysis can be done. Data
can be numbers, images, words, figures, facts or ideas. Data sources are broadly classified into
two types namely:

Primary source
Secondary source

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Primary data means original data that has been collected specially for the purpose in mind.
Primary data has not been published yet and is more reliable, authentic and objective.

Secondary data is the data that has been already collected by and readily available from other
sources. These secondary data may be obtained from many sources including literature and
computerized databases.

TOOLS FOR DATA COLLECTION:

These are the techniques used by the researcher to collect the data from the various sources

Primary Data:-

Visiting various Dealers and asking them about their promotional strategies and requirement of
customers. Asking to users of Maruti and Hyundai about their preference, criterias while buying
car and their experience with dealers and their expectations from dealers.

Observation method: This is the best way to collect data through observation. This can be done
directly or indirectly with the subject knowing or unaware

Questionnaire: In this method questionnaire prepared by us is sent to the customer to understand

their opinion of two automobile company. It consists of a number of questions printed on typed
in a definite order on a form on set of forms.

Secondary Data:-

Magazines.

Internet.

PLAN OF ANALYSIS:

This is the roadmap that how we are going to analyze the topics.

The data collected through questionnaire and observation method are analyzed and interpreted
with the help of tables and graphs. This helps to understand the data systematically and can
interpret easily.

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OVERVIEW OF THE REPORT

This is essentially the chapter scheme and is divided into six units as under:

INTRODUCTION

The design if the study tells us about the automobile industry and evolution. Research
methodology adopted for the study. Statement of the problem. review of the literature. Scope of
the study. Objective of the study. Operational definitions of the concept. Sampling method data
collection tool, limitations of the study and overview if the report.

Chapter -1 LITERATURE REVIEW

This chapter starts with the brief idea regarding the project and it also explains the theoretical
background of the study ie. !Duxes of pleasure and displeasure in service etc and the projects
referred books and the Ankles related.

Chapter-2 COMPANY PROFILE

This chapter has the profile of the company.

Chapter -3 PRODUCT PROFILE

This chapter contains product profile.

Chapter -4 DATA ANALYSES AND INTERPRETATION

This charier contains clamifitation and tabulation of data. analysis and interpretation.

Chapter -5 SUMMARY OF FINDING'S

This chapter contains the findings of the project

Chapter-6 CONCLUSION & SUGGESTION

This is the last chaser. It has executive summary of dissertation. Conclusions and suggestions.

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REFERENCE

Competitive Strategy: Techniques for Analyzing Industries and competitors (1980) Michel E.
Porter ( with R.E. Caves and A.M Spence )

Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. [2nd
ed.] New York: Free Press, 1998.

Porter, M. E. The Competitive Advantage: Creating and Sustaining Superior

Performance. NY: Free Press, 1985. (Republished with a new introduction, 1998.)

Michel Jorden (2016). Fundamentals for preparing journal articles of automobile. Journal of
classic cars, 55, 893-896.

http://www.investopedia.com/terms/n/national-diamond.asp

http://www.managementparadise.com/documents/3080/comparative-study-of-maruti-and-
hyundai.

Chandan.B N Guide Signature

151GCMD030 Mr. M Rajiv
Professor

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