Consumer Behavior and Effect of Marketing Strategy On Atul Autofinal-1

CHAPTER – 1
DESIGN OF THE STUDY

1.1 INTRODUCTION OF THE STUDY
The Indian economy has been influenced by impressive industrial
resurgence and automobile industry is definitely one of them. The
automotive industry has played a commendable role in the rapid
industrial and economic growth of the country. Due to the economic
liberalization a number of global automobile manufacturers have found
India as one of the premier business destinations.
An overview of the automotive industry of the country clearly indicates
that the emergence of three wheelers as an effective mode of
transportation has benefited millions of Indians. Three wheelers are not
only used for carrying passengers but are also used as luggage
carriers. In India the three wheelers usually run on diesel and petrol but
of late in some of the cities CNG run three wheelers have also come up
in large numbers.
Today’s companies are facing their toughest competition ever, due to
numerous factors. But the entire success of the company lies in the
amount of belief and loyalty; its customers are having in it. Hence it is
very much important to understand consumer behavior.
1.2 OBJECTIVES OF THE STUDY
● To study marketing mix of Atul Auto Ltd.
En No. 110288197 PP 108523 LOKESHKUMAR

● To find out the various sales techniques adopted by the
company.
● To find out the brand awareness for Atul Auto.
● To find out the customer’s perception of the Atul Auto.
● To study views and opinions of the customers regarding Atul
auto vehicles, company and dealers.
● To know various promotional efforts undertaken by the company
● To find out and present efficiency of service department.
1.3 RESEARCH METHODOLOGY
1.3.1 Research Design
A research design is the arrangement of the condition for collection
and analysis of data. Actually it is the blueprint of the research
project.
Research design used was descriptive type.
1.3.2 Data Collection
 Primary Data : It was collected through structured
questionnaire. Questionnaire will contain close ended
questions.
 Secondary Data : The Secondary Data collection involve
internet search, browsing magazines, newspapers and
articles and papers related to the automobile industry in
India. Numerous Journals and books related to the topic will
also be browsed to understand the dynamics of the industry.

1.3.3 Sampling Design
Sample Size : 100
Sample Unit : Individual
Sampling technique : Convenience sampling
1.3.4 Data Analysis
Data analysis was done with the help of Simple percentage and
graphical method. Pie and Bar chart was used to represent data.
1.4 LIMITATIONS OF THE STUDY
 I have considered Ahmedabad City for survey because of time and
cost.
 Finding of the study will be based on the assumptions that
respondents have given correct information.
 Information provided by respondents may be biased.
 The study is restricted only to the organized sector of two wheeler
industry
 The sample size is comparatively very small compared to the
population and there are chances that it may not represent the
whole population.
 The time and cost factors will affect the size of the sample.
 The study is academic in nature.
 The final conclusion can be also affected by some of the
extraneous variables.

CHAPTER – 2
INDUSTRY PROFILE
2.1 INTRODUCTION
The automobile industry is one of the biggest industries in the world.
Being a major revenue and job generating sector it drives the
economies of some of the superpowers of the world. In India the
automobile industry has grown by leaps and bounds since the advent
of the liberalization era the automobile industry and especially the two
wheeler segment has grown by leaps and bounds.
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 80 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 automobile industry in India is world’s third largest, with the
country currently being the world's seventh largest commercial vehicle
manufacturer. The government aims to develop India as a global
manufacturing as well as a research and development (R&D) hub. It
has set up National Automotive Testing and R&D Infrastructure Project
(NATRiP) centres as well as a National Automotive Board to act as
facilitator between the government and the industry. The Indian

government has also set up an ambitious target of having only electric
vehicles being sold in the country by 2030.
Alternative fuel has the potential to provide for the country's energy
demand in the auto sector as the CNG distribution network in India is
expected to rise to 250 cities in 2018 from 125 cities in 2014. Also, the
luxury car market could register high growth and is expected to reach
150,000 units by 2020.
2.2 MARKET SIZE
Production of passenger vehicles, commercial vehicles, three wheelers
and two wheelers grew at 5.41 per cent in FY17 to 25,316,044 vehicles
from 24,016,599 vehicles in FY16.The sales of passenger vehicles,
commercial vehicles and two wheelers grew by 9.23 per cent, 4.16 per
cent and 6.89 per cent respectively, during the period April-March
2017.
India's electric vehicle (EV) sales increased 37.5 per cent to 22,000
units during FY 2015-16 and are poised to rise further on the back of
cheaper energy storage costs and the Government of India’s vision to
see six million electric and hybrid vehicles in India by 2020.
The overall Passenger Vehicle (PV) segment has 14 per cent market
share. India is also a prominent auto exporter and has strong export
growth expectations for the near future. In April-March 2017 exports of

PV and Commercial Vehicles (CV) registered a growth of 16.20 per
cent and 4.99 per cent respectively, over April-March 2016. In addition,
several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the
2W and Four Wheeler (4W) market in the world by 2020.
The passenger vehicle sales in India crossed the three million unit
milestone during FY 2016-17, and is further expected increase to 10
million units by FY20.
The automotive manufacturing industry comprises the production of
commercial vehicles, passenger cars, and three & two-wheelers. Two-
wheelers are by far the most popular form of vehicle in India, taking an
80% share in 2015-16. 25 million automobiles produced in FY17. Total
production volume grew at a CAGR of 5.56 per cent between FY12-17.
Two-wheelers and passenger vehicles dominate Indian auto market.
Two-wheelers and passenger cars accounted for 78 per cent and 15
per cent of production volume in FY17 respectively. Domestic
passenger car sales dominated by small and mid-size cars. Over 67
per cent of export volumes comprised of two-wheelers, followed by 22
per cent for passenger cars.
Two-wheeler sales are expected to grow 8-10 per cent in FY18. Indian
automobile industry has received foreign direct investments (FDI) worth
US$ 17.39 billion between April 2000 and June 2017.

Domestic Market Share for 2016-17
Passenger Vehicles 14
Commercial Vehicles 3
Three Wheelers 3
Two Wheelers 80
Grand Total 100
Automobile Production Trends
Category 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Passenger 31,46,069 32,31,058 30,87,973 32,21,419 34,65,045 37,91,540
Vehicles
Commercial 9,29,136 8,32,649 6,99,035 6,98,298 7,86,692 8,10,286
Vehicles
Three 8,79,289 8,39,748 8,30,108 9,49,019 9,34,104 7,83,149
Wheelers
Two 1,54,27,532 1,57,44,156 1,68,83,049 1,84,89,311 1,88,30,227 1,99,29,485
Wheelers
Grand 2,03,82,026 2,06,47,611 2,15,00,165 2,33,58,047 2,40,16,068 2,53,14,460
Total
Domestic Sales Trend
Category 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Passenger 26,29,839 26,65,015 25,03,509 26,01,236 27,89,208 30,46,727
Vehicles
Commercial 8,09,499 7,93,211 6,32,851 6,14,948 6,85,704 7,14,232
Vehicles
Three 5,13,281 5,38,290 4,80,085 5,32,626 5,38,208 5,11,658
Wheelers
Two 1,34,09,150 1,37,97,185 1,48,06,778 1,59,75,561 1,64,55,851 1,75,89,511
Wheelers
Grand Total 1,73,61,769 1,77,93,701 1,84,23,223 1,97,24,371 2,04,68,971 2,18,62,128
Export Trend
Category 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Passenger 5,08,783 5,59,414 5,96,142 6,21,341 6,53,053 7,58,830
Vehicles
Commercial 92,258 80,027 77,050 86,939 1,03,124 1,08,271
Vehicles
Three 3,61,753 3,03,088 3,53,392 4,07,600 4,04,441 2,71,894

Wheelers
Two 19,75,111 19,56,378 20,84,000 24,57,466 24,82,876 23,39,273
Wheelers
Grand 29,37,905 28,98,907 31,10,584 35,73,346 36,43,494 34,78,268
Total
2.3 INVESTMENT
In order to keep up with the growing demand, several auto makers
have started investing heavily in various segments of the industry
during the last few months. The industry has attracted Foreign Direct
Investment (FDI) worth US$ 17.40 billion during the period April 2000
to June 2017, according to data released by Department of Industrial
Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile
sector in India are as follows:
 JSW Energy, a subsidiary of Jindal Group, has signed a
Memorandum of Understanding (MoU) with the Gujarat
government to set up an electric vehicle-manufacturing
company at a cost of Rs 4,000 crore (US$ 613 million) which will
have the capacity to produce 2,00,000 electric vehicles every
year.
 Tata Motors will invest Rs 4,000 crore (US$ 612 million) in the
year 2017 and a major portion will go to passenger vehicles i.e.
Rs 2,500 crores (US$ 375 million) and the remaining Rs 1,500

crore ($225 million) will be invested in the business over the
next few years.
 Electric car maker Tesla Inc. is likely to introduce its products in
India sometime in the summer of 2017.
 Kia Motors is expected to sign a memorandum of understanding
(MoU) with the Government of Andhra Pradesh (AP) to set up a
factory in Penukonda in Anantapur district and the company will
invest around US$ 2 billion on this plant and it will have
manufacturing capacity of the 3 lakhs car per annum.
 Several automobile manufacturers, from global majors such as
Audi to Indian companies such as Maruti Suzuki and Mahindra
& Mahindra, are exploring the possibilities of introducing
driverless self-driven cars for India.
 BMW plans to manufacture a local version of below-500 CC
motorcycle, the G310R, in TVS Motor’s Hosur plant in Tamil
Nadu, for Indian markets.
 Hero MotoCorp Ltd seeks to enhance its participation in the
Indian electric vehicle (EV) space by pursuing its internal EV
Programme in addition to investing Rs 205 crore (US$ 30.75
million) to acquire around 26-30 per cent stake in Bengaluru-
based technology start-up Ather Energy Pvt Ltd.

 Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million)
to build a global technology and business centre in Chennai,
which will be designed as a hub for product development,
mobility solutions and business services for India and other
markets.
2.4 GOVERNMENT INITIATIVES
The Government of India encourages foreign investment in the
automobile sector and allows 100 per cent FDI under the automatic
route.
Some of the major initiatives taken by the Government of India are
 Government is planning to introduce biofuel vehicles for road
and water transportation. India needs to cut fossil fuel imports
and look for alternative and cheaper fuels like methanol.
 Government of India extended support to the industry by
increasing custom duty on CBUs of commercial vehicles from 10
per cent to 40 per cent and reducing duty on chassis for
ambulance manufacturing from 24 per cent to 12.5 per cent.
 The Government of India plans to introduce a new Green Urban
Transport Scheme with a central assistance of about Rs 25,000
crore (US$ 3.75 billion), aimed at boosting the growth of urban
transport along low carbon path for substantial reduction in

pollution, and providing a framework for funding urban mobility
projects at National, State and City level with minimum recourse
to budgetary support by encouraging innovative financing of
projects.
 Government of India aims to make automobiles manufacturing
the main driver of ‘Make in India’ initiative, as it expects
passenger vehicles market to triple to 9.4 million units by 2026,
as highlighted in the Auto Mission Plan (AMP) 2016-26.
 The government has formulated a Scheme for Faster Adoption
and Manufacturing of Electric and Hybrid Vehicles in India,
under the National Electric Mobility Mission 2020 to encourage
the progressive induction of reliable, affordable and efficient
electric and hybrid vehicles in the country.
2.5 ROAD AHEAD
The automobile industry is supported by various factors such as
availability of skilled labour at low cost, robust R&D centres and low
cost steel production. The industry also provides great opportunities for
investment and direct and indirect employment to skilled and unskilled
labour.
The Indian automotive aftermarket is estimated to grow at around 10-
15 per cent to reach US$ 16.5 billion by 2021 from around US$ 7 billion
in 2016. It has the potential to generate up to US$ 300 billion in annual

revenue by 2026, create 65 million additional jobs and contribute over
12 per cent to India’s Gross Domestic Product#.
According to Mr Guillaume Sicard, president, Nissan India Operations,
the income tax rate cut from 10 per cent to 5 per cent for individual tax
payers earning under Rs 5 lakh (US$ 7,472) per annum will create a
positive sentiment among likely first time buyers for entry level and
small cars.
2.6 THREE WHEELER MARKET IN INDIA
India has emerged as the largest three-wheeler industry with a large
domestic market and export base on the back of strong demand from
local as well as international markets.
India is the world’s foremost producer, consumer and exporter of three-
wheelers (3Ws) with domestic sales of 5,11,658 units and exports of
2,71,894 units in the financial year ending March 31, 2017 (Source:
SIAM). 3Ws are widely used in India as an affordable means of short-
to-medium distance public transportation and last mile connectivity for
goods transportation.
Apart from the domestic demand, India has also emerged as important
export hub for 3Ws with presence in some of the South Asian, African
and Latin American markets that are replicating Indian 3W story with
rising disposable incomes but inadequate public transport systems.

Overall, the 3W industry has witnessed relatively healthy 15% CAGR
volume growth over the last decade driven by moderate domestic
growth (10% CAGR) and robust exports growth (38% CAGR).
ICRA Research expects the domestic 3W passenger segment to
benefit from product up-gradations (2-stroke to 4-stroke, Petrol/Diesel
to CNG, front engine to rear engine vehicles) as well as opening of
fresh permits by various state governments. Despite stiff competition
from 4W Small Commercial Vehicles (SCVs), the domestic 3W goods
segment continues to benefit from its favorable operating economics
for First Time Users (FTUs). Lastly, ICRA expects 3W exports to
remain the main growth driver for the industry due to rising disposable
incomes, evolving travel & consumption patterns, improving road
infrastructure, increasing demand for motorized transportation and
inadequate public transport systems in the target emerging markets.
The SCVs are increasingly gaining popularity even in the lower
tonnage (0.5T) Cargo segments with the introduction of smaller
vehicles by CV OEMs recently. While the domestic 3W goods segment
has de-grown at 9% CAGR over the last five years, SCVs have
reported robust 21% CAGR growth over the same period. Moreover,
slowing economic growth, moderating consumer goods consumption,
high inflation, increase in financing costs, rising fuel prices, absence of
fresh permits by the state governments and overall high base has
impacted domestic 3W sales in FY17.

The top-three players such as market leader Bajaj Auto, second largest
manufacturer Piaggio and Mahindra and Mahindra accounted for 87.3
per cent of the industry sales at 10 million units in FY2017.
Over the past decade during FY 2007-17, the Indian 3W industry grew
a compounded annual growth rate (CAGR) of 8.9 per cent in unit sales
driven by steadily rising exports as well as domestic demand.
The passenger carrier segment accounted for almost 80 per cent of
domestic 3W industry sales. Accordingly, the growth drivers of the
domestic 3W industry are majorly influenced by factors that drive
demand for passenger 3Ws.
Over the past decade (FY 2007-17), the passenger carrier segment
has witnessed a CAGR of 8.2 per cent driven by increasing demand for
last-mile connectivity in metros and major cities, improving penetration
in tier III/IV towns and rural areas, and gradually increasing availability
of funding through organised channel.
In urban markets, replacement demand has also been an important
growth driver where in improving network of CNG fuel stations is
driving replacement of older petrol or diesel powered 3Ws with ones
based on CNG, the report said.

Despite the fact that the usage of CNG is only mandatory in Delhi, the
acceptance for CNG-based 3Ws has caught up in other cities as well
primarily on back of favorable operating economics, it said. The report
said the cargo variants face tough competition from small CVs but
certain attributes support their sales.
With annual sales volumes of 1,00,000 units in FY 2015, the goods
carrier segment accounted for almost one-fifth of domestic 3W industry
sales. Unlike the passenger segment, which has grown, the demand
for goods carriers has actually declined by 4.2 per cent over the same
period.
CHAPTER – 3
COMPANY PROFILE
3.1 INTRODUCTION
This company was started by Shri. Jayantibhai Chandra about 42
years back from his family firm Atul Auto Industries in jamnagar.
Mr. Jagjivanbhai Chandra was constantly following the rapid change in
the transportation needs of Indian Masses. The vision and automobile
skill prompted him to experiment on the development of a Rural
Transport vehicle which eventually replaces the Bullock Cart. He
initially experimented on the Golf Carts, made available by Jam Saheb

of Jamnagar. Subsequently through skillful use of Motorcycle, he
created Rural Transport Vehicle, which meets all the transportation
requirements from Rural Saurashtra.
The vehicle created by Mr. Jagjivanbhai Chandra is popularly known in
Saurashtra region of Gujarat as ‘CHHAKADA’.
During late seventies, Mr. Jayantibhai Chandra, son of Mr. Jagjivanbhai
Chandra stepped into the automobile venture founded by his father. Mr.
Jayantibai inherited the vision and auto skill from his father. During this
time due to the substantial price difference, Indian automobile industry
was rapidly converting into Diesel Vehicles. Mr. Jayntibhai could
immediately sense this change in the atmosphere.
Through constant research, Mer. Jayantibhai created a Diesel
Chhakada. This Chhakada an ideal Rural Transport Vehicle for Indian
conditions, received such an over-whelming response that today more
than 1,50,000 Chhakadas are operating in Saurashtra region alone.
The Atul Auto Ltd. does production of passenger rickshaw namely
“KHUSHBU MARK” with R.T.O. approval for 6 passengers+1 driver
capacity and a conversion of the same in to pick up van, delivery van
etc. beside traditional diesel good carrier.

There is always a shortage of public transport facilities and in spite of
having major investment, the public transport cannot cope up with the
transportation needs of urban, semi urban and even small township
areas.
Like any other the motorcar taxis are expensive and beyond the reach
of the common man. It is also not possible and economically feasible
for every family or individual to own personal transport vehicle.
After establishing CHHAKADA RTVL for common man in Rural Areas,
Atul Group focused their attention towards the needs of common man
in Semi-Urban and Urban areas. A detailed market survey was
conducted and a niche market of half-tonner vehicle was identified. To
take the proper advantage of this market niche, Atul group developed
Half Tonner Commercial 3-Wheeler, branded as ‘SHAKTI’. The
prediction of market potential was so accurate that Atul Group is
doubling the production and turnover constantly for last three years.
Today, the combined turnover of Atul Group is approximately Rs. 1.5
Billion (US $ 30 Million).
Atul Group has ambitious programmers for the future. In addition to
increase the production capacity, Atul Group is engaged to keep a pace
with changing environment. The group is planning to introduce in near
future:-
1. Micro Commercial Vehicle to carry 750 Kg. Payload.

2. Petrol 3-Wheelers.
3. CNG operated vehicles.
4. Vehicles running on LPG.
5. Range of Electric Commercial Vehicles.
6. 4 Wheeled One Tonner LCV.
7. Multi Purpose Universal Rural Transport Vehicle (RTVL).
At present the company has an efficient Organization comprising term
of dedicated and professional personnel in all areas of management,
senior automobile engineers head planning, project and production
department who have experience of 3 to 4 decades with nationals and
multinational companies.
3.2 MISSION
“To devote ourselves to cater to the common man's transportation
needs by introducing environment-friendly vehicles which are
empowered by latest technological advances”
3.3 VISION
“To contribute in eradication of poverty by making the common people
self-dependent with our state of the art technology, products and
services”

3.4 INFRASTRUCTURE
Today, Co. has manufacturing unit with all the advanced equipments
and machineries like CNC machine shop, fabrication shop, paint shop,
test house and much more.
Manufacturing plant situated at Shapar 18 Kms. away from Rajkot. This
plant is having production capacity of 48,000 vehicle per annum in
single shift basis.

Managing Director
General
Manager
Production Planning & Finance Manager

Control Manager
3.5 ORGANIZATION STRUCTURE
CEO
Human Resources Production

Assistant General Assistant General
Manager Manager
Administration Assistant
Supply Chain Production Quality Machine

Mgmt Head department Assurance Department
Head Head Head
Store Production Assistant Machine

Supervisor Supervisor Q. A Operators

Subordinate Workers Helpers
Members
3.6 PRODUCTS
1. Atul Shakti
Pick up Van Delivery Van Pick up Van high deck
Pickup Van Highdeck
Passenger Van Carrier Chicken Van carrier Tipper

Water tank Carrier Soft drink Carrier Mobile Shopile Shop
2. Atul Gem
Delivery Van
Gem Cargo/ Cargo XL Gem Paxx Delivery Van
3. Atul Smart
3+1 Passenger Carrier Pick up Van High deck
4. Atul Gemini

Gemini – Dz Gemini Petrol
3.7 MANUFACTURING PROCESS
Following are the main parts which are combined in the manufacturing.
1) Body and front show
2) Chassis
3) Internal Parts and Accessories
The production process of three wheeler in Atual Auto Ltd can be
summarized as follows.
a. Purchase of raw material:
The main raw material, which is used by the company, is iron.
Company purchases different varieties of iron like, iron angles,
iron sheets, iron pipes, etc. This raw material imports from
Shaper, Rajkot and Ahmedabad by the company. The raw
material is stored in storeroom.
b. Cutting of raw material:
After receiving raw material, the process of cutting as per
requirement is done by the workers. Iron angles sheets and
pipes are cut as per need in cutting department
c. Chassis section
Where the chassis is manufactured according to size, shape
and standards. Main row material for chassis is iron and steel.

d. Shaping:
The raw materials, which were out, are given shape on shaping
machine. Iron pipes angles and sheets are given shapes as per
its place in vehicles.
e. Flexing of components:
The Raw materials, which were out, are given shape on shaping
machine. Iron pipes angles and sheets are given shapes as per
its place in vehicle.
Different components, which were fixed by joining different parts
of irons are assemble in assembling department and after
completion of this process, half of the process is finished here.
f. Fabrication & bodybuilding shop
Where the body of three wheelers is built over here from mild
steel through mounting, cutting, pressing and welding
processes.
g. Boding
In this part of the production process the vehicles is given heat,
so that color word not depart from iron. Painting is done in
similar way after a component is done in electric over at suitable
temperature.
h. Painting

After boding process the painting process is carried out.
i. Heating:
After paintings process the vehicles is given heat, so that color
word not depart from iron. Painting is done in similar way after a
component is done in electric oven at suitable temperature.
j. Pre-delivery inspection:
The products are being checked before delivery, so that if any
can be removes from vehicles. So that customers would not get
dissatisfaction after purchasing company’s product.
CHAPTER – 4
THEORETICAL FRAMEWORK OF CONSUMER

BUYING BEHAVIOUR
4.1 CONSUMER BEHAVIOUR
The term "Consumer Behaviour" refers to the behaviour that consumer
display in search for purchasing, using evaluation and disposition of
products and services that they expect will satisfy their needs. The
study of consumer behaviour is the study of how individuals make
decisions to spend their available resources (time, money, effort) on
consumption related items. It includes the study of what they buy, why
they buy it when they buy where they buy it, how often they buy it and
how often they use it. In this process the consumer deliberated within
himself before the finally makes a purchase or more.

This deliberation relates to many variables and is aimed to solving
consumption problem. Among these problems the first and foremost is
to decide whether to spend money or to save it.
Once a decision is taken to spend money the second problem is to
decide what to buy because the resources are limited and needs are
multiple. Therefore needs are to be marked in priority terms.
During my study I found that how consumers make a decision for
buying a product.
4.2 MODELS OF CONSUMER BEHAVIOUR
The bayer's characteristics and decision process lead to certain purchase decision. The
marketers task is to understand what happens in the buyers consciousness. The buyers'
behaviour is stimuli response between the arrival of outside stimuli and the buyers' purchase
decision.
Marketing Other Buyers' Buyers' Buyers'
stimuli stimuli characteristi decision decision
cs process
Product Economic Cultural Problem Product
Price Technologi Social Recognition choice
Place cal Political Personal Information Brand
Promotion Cultural Psychological Search choice
Evaluation of Dealer

alternative choice
Purchase Purchase
decision Post Timing
Purchase Purchase
behaviour amount
4.3 FACTORS INFLUENCING CONSUMER BUYING
BEHAVIOR
A consumer buying behaviour is influenced by cultural, social, personal
and psychological factors exerts the product and deepest influences.
It may be shown as follows:-
Factors
Cultural Social Personal Psychological
Cultural Sub-Cultural Social Class
Factor Factor Factor
Reference Group Family Rules and Status

Age & Stage Occupation & Economic Personal and Life Style
Life Cycle Circumstances Self concept & Values
Motivational Learning Perception Believes & Attitude
(1) Culture Factors :-
Culture factors have great impact on consumer behaviour. The
roles played by the buyer's culture, subculture and social class
are particularly.
Culture :-
Culture is the most fundamental determinants of a person's
wants and behaviour. The growing child acquires a set of
values, perceptions, preference and behaviour through his or
her family and others key institutions. A child growing up in
America is exposed to the following values i.e. achievement and
success, activity efficiency, practical progress material comfort,
individualism, freedom external comfort, humanitarianism and
youthfulness.
Sub Culture :-
Each culture consists of smaller sub-culture that provide more
specific identification and socialization for their members, sub-
culture includes nationalities, religious, radial group and

geographic regions, many sub-cultures make important market
segment and marketers often design product and market
programs according to their needs.
Social Class :-
Virtually all human societies exhibit social stratification.
Stratification sometimes takes the form of a caste system where
the members of different caste are reared for certain roles and
cannot change their caste membership. More frequently
stratification takes the form of social classes. Social classes are
relatively homogenous and enduring divisions in a society, which
are hierarchically ordered and whose members share similar
values, interests and behaviour.
Social classes are divided into seven terms :-
 Upper - upper class
 Lower - upper class
 Upper - middle class
 Middle - Class
 Working Class
 Upper - lower classes
 Lower-lower class
(2) SOCIAL FACTORS :-

A consumer behaviour is also influenced by such social factors
as reference group, family, role & status.
Reference Group :-
Many groups influence a person's behaviour. A person's
behaviour group that have a direct or indirect influence on the
person's attitudes and behaviour. Groups having a direct
influence of a person are called membership groups. These are
groups to which the person belongs and interacts. Some are
primary groups such as family, friends and neighbors with which
the person interacts fairly continuously. Primary groups tend to
be informal. A person also belongs to secondary groups such as
religious, professional and trade union groups which tend to be
more formal and require less continuous interaction.
People are also influenced by groups in which they are not
members. Groups to which a person would like to belongs are
called inspirational groups.
Family :-
Most consumers belong to a family group. They influence the
pattern of consumption. Buying habits creates by family
influences. The members of the family play different roles as for
deciding, purchaser and user. The housewife may act as a
mediator of products that satisfy wants and desires of the

children. Many question arise in the whole family but a marketer
has to think that who is the main purchaser of family.
In the case of expensive products services, husband and wives
engage in more joint decision making. The marketers need to
determine which member normally has the greater influence in
choosing various products often it is a matter of who has more
power or expertise.
Here are Typical product patterns
Husband dominant :- Life insurance, Automobiles, T.V.
Wife dominant : - Washing Machine, Furniture, Kitchenware
Equal :- Vacation, Housing, Outside entertainment.
Roles and Status :-
A person participates in many groups:- family, clubs and
organization. The person's position in each group can be
defined in term's of roles and status. A role consists of the
activities that a person is expected to perform. Each role carries
a status. A supreme court justice has more status than a sales
manager and a sales manager has more status than an office
clerk. People choose products that communicate their role and
status in society. Thus company drive Mercedes, wear
expensive suits and drink chives regal scotch. Marketers are
aware of the status symbol potential of products and brands.

(3) PERSONAL FACTORS :-
A buyer's decisions are also influence by personal
characteristics not by the buyer's age and life stage, occupation,
economics circumstances, lifestyle and personality and self
concept.
Age and Life cycle stage :-
People buy different goods and services over their lifetime. The
eat baby food in the years, matured foods in the growing and
mature years, and special diets in the latter years. People's taste
in clothes furniture and recreation is also age related.
Consumption is also shaped by the stage of the family life cycle.
Marketers often choose life cycle groups as their target market.
Some recent work has identified psychological life cycle stages.
Adults experience certain "passages" or transformations as they
go through life markers pay close attention to changing life
circumstances divorce widowhood remarriage and their effect on
consumption behaviour.
Occupation :
A person's occupation also influences his or her consumption
pattern. A blue collar worker will buy work clothes work shoes,
lunch box. A company's president will buy expensive suits, air

travel, country club membership and a large sail boat. Marketers
try to identify the occupational groups that above average
interest in their product and services. A company can even
sexualize their computers software companies will design
different computers software for brand manager, engineers,
lawyers and physicians.
Economic Circumstances :-
Product choice is greatly affected by ones economic
circumstances. People's economic circumstances consists or
their spendable income, its level stability and time pattern,
saving and assets including the percentage that is liquid debts,
borrowing power and attitudes towards spending versus saving.
Lifestyle :-
People coming from the same sub-culture, social class and
occupation may lead quite different lifestyles. A person's life is
the person's pattern of living in the world as expressed in the
person's activities, interest and opinions. Lifestyle portrays the
"whole person" interacting with his or her environment.
Marketers will search for relationship between their product and
lifestyle groups. A computer manufacturer may find that most
computer buyers are achievement oriented. The marketer may
then aim the brand more clearly at the achiever lifestyle.

Personality and Self-concept
Each person has a distinct personality that will influence his or
her buying behaviour. By personality we mean the person's
distinguishing psychological characteristics that lead to relatively
consistent and ending responses to his or her environment.
Personality is usually described in terms of such facts as self
confidence, dominance, autonomy difference, sociability,
defensiveness and adaptability.
(4) Psychological Factors
A person's buying choices are influenced by four major
psychological factors
 Motivation,
 Perception
 Learning and Beliefs
 Attitudes
Motivation :-
A person has many needs at any given time some needs are
biogenic they arise from psychological states of tension such as
larger, thirst, discomfort. Other needs are psychogenic ; they
arises from needs are psychogenic they arises from
psychological states of tension such as the need for recognition,
esteem, or belonging. A need becomes motive when it is
aroused to a sufficient level of intensity. A motive is need that is
sufficiently pressing to drive the person to act.

Perception:-
Perception is the process by which an individual organization
select interprets information, inputs to create a meaningful
picture of the world.
Perception depends not only on the physical stumuli but also on
the stimuli relation to the surrounding field and on condition
within the individual.
The key word is the definition of perception of individual. One
person might perceive a fast talking sales person as aggressive
and in sincere, another as intelligent and helpful. People can
emerged with different perception of the some object because of
three perceptual process, selective attention, selective distortion
and selective retention.
Learning :
Learning involves changes in an individual's behaviour arising
from experience. Most human behaviour learned learning
theorists believe that learning is produced through the interplay
of desirous, stimuli, cues responses and reinforcement.
Beliefs and Attitudes :-

Through doing and learning people acquired beliefs and
attitudes. These turns influence buying behaviour. A belief is a
descriptive thoughts that a person holds about something.
Believes may be based on knowledge, opinion or faith. They
may or may not carry emotional charges, of course
manufacturer are very interested in the beliefs. People carry in
their heads about their products and services.
An attitude is a persons enduring favourable or unfavourale
evaluation emotional feelings and action tendencies towards
some object or ideas.
People have attitude towards almost everything politics clothes
music, food. Attitudes put them into a frame of mind of disliking
and object moving towards or away from it. Attitudes lead people
to behave in fairly consistent way towards similar object. People
do not have to interpret and every object in a fresh way,
because attitudes economize on energy and thought, they are
very difficult to change. A person attitude settle into a consistent
pattern to change a single attitude may require major adjustment
in other attitudes.
4.4 BUYING DECISION PROCESS

1. Problem Recognition
The buying process starts when the buyer recognizes a problem
or need by gathering information from a number of consumers,
marketers can identify the most frequent stimuli that spark an
interest in a product category.
2. Information Search
Consumer information sources fall into four groups:
Personal sources: Family, friends, neighbors, acquaintances
Commercial sources: Advertising, salespersons, dealers,
packaging, displays
Public sources: Mass media, consumer -rating organizations
Experimental sources: Handling, examining, using the product
3. Evaluation of Alternatives

There are several decision evaluation processes; first the
consumer is trying to satisfy a need. Second, the consumer is
looking for certain benefits from the product solution. Third, the
consumer sees each product as a bundle of attributes with
varying abilities for delivering the benefits sought to satisfy this
need.
4. Purchase Decision
However, two factors can intervene between the purchase
intention and the purchase decision. The first factor is the
attitude of others. The second factor is unanticipated situational
factors that may erupt to change the purchase intention. A
consumer’s decision to modify, postpone, or avoid a purchase
decision is heavily influenced by perceived risk.
5. Post Purchase Behavior
Marketers must monitor post purchase satisfaction, post
purchase actions and post purchase product uses
Post Purchase Satisfaction: the importance of post purchase
satisfaction suggests that product claims must truthfully
represent the product’s likely performance.
Post Purchase Actions: satisfaction or dissatisfaction with the
product will influence consumer’s subsequent behavior. If the

consumer is satisfied, he or she will exhibit a higher probability
of purchasing the product again. Dissatisfied customers may
abandon or return the product.
Post Purchase Use and Disposal: Marketers should also
monitor how buyers use and dispose of the product. If
consumers store the product in a closet, the product is probably
not very satisfying. If they sell or trade the product, new-product
sales will be depressed. Consumers may also find new uses for
the product.
CHAPTER – 5
DATA ANALYSIS AND INTERPRETATIONS
1. Age Group:-
Age influences the perception level of consumer. Different age groups
prefer different types of products. The tastes and preferences of
different age group are different from that of the other.
Table: 1
Number of Percentage of
Age Group
respondents respondents
18-30 53 53%
30-35 33 33%
35-45 8 8%
Above45 6 6%
Total 100 100%

Interpretation: From the above data it is clear that most of the people
surveyed are from the age group of 18-30 i.e. 53%. 33% respondents
are from age group of 30-35, 8% are from 35-45 and 6% are above 45
age group.
Majority of the respondents belong to age group of 18-30 years.
2. Occupation
The people surveyed belong to different fields they are mainly from…
those who are using autos are:
Table: 2
Occupation Number of Percentage of

Business 20 20%
Drivers 68 68%
Agriculture 12 12%
Total 100 100%

Interpretation: Only 20% of respondents are using Autos for Business,
68% are Auto Drivers and 12% of people are using for Agriculture.
3. Brand Share
Different types of people will choose different Brands as per their
requirements and needs.
Table: 3
Brand Number of Percentage of

Ape 20 20%
Atul Auto 32 32%
Mahindra 20 20%
T.V.S 12 12%
Bajaj 16 16%
Total 100 100%

Interpretation: 20% of people are having Ape. 32% are having Atul
auto, 20% have Mahindra, 20%, T.V.S and 12% respondents have
Bajaj.
Majority of the respondents have Atul auto.
4. Brand Image
The brand image of company is a very prestigious thing. Manufactures
work out a lot for maintaining their product up to the Perceptions of the
customers. So they will give a great value to the brand image of
product.
Table: 4
Opinion Number of Percentage of

Excellent 30 30%
Good 60 60%
Satisfied 10 10%
Total 100 100%

Interpretation: 30% of the respondents said Atul auto is excellent,
60% said it is good and 10% said brand image of Atul auto is satisfied.
Majority of the respondents said brand image of Atul auto is good.
5. Any Problem in vehicle
Table: 5
Problem Number of respondents Percentage of respondents

Crank 18 18%
Clutch 24 24%
Gear box 12 12%
Service 46 46%
Total 100 100%

Interpretation: Majority of share i.e. 46% of people are dissatisfied
with service offered by the Company, 18% complained about crank,
24% with Clutch and 12% respondents have complaint regarding
gearbox.
6. Prices of spare parts:
Table: 6
Spare Parts Number of Percentage of
Prices are HIGH respondents respondents

Yes 78 78%
No 22 22%
Total 100 100%

Interpretation: 78% of customers said that spare parts’ prices are high
and 22% said that spare parts’ prices are not high.

7. Satisfaction about the Vehicle
Table: 7
Vehicle Number of Percentage of
Satisfied respondents respondents

Yes 76 76%
No 24 24%
Total 100 100%
Interpretation: 76% of customers are satisfied with the Vehicle they
are using and 24% of respondents have complaint about the product
and are dissatisfied.
8. Reference
Table: 8

Vehicle Number of Percentage of
Recommended respondents respondents
Yes 88 88%
No 12 12%
Total 100 100%
Interpretation: 12% of the respondents will not recommend to others
to buy vehicles they have and 88% will recommend to others.
9. Will prefer Atul Auto
Table: 9
Product Number of Percentage of
Recommended respondents respondents

Yes 88 88%
No 12 12%
Total 100 100%

Interpretation: 88% of respondents will prefer to buy Atul Auto from
market while 12% of the respondents will not prefer to buy Atul Auto.
10. Availability of Spares in the Market
Table: 10
Availability of Number of Percentage of

Spares respondents respondents
Comfortable 94 94%
Not up to the Mark 6 6%
Total 100 100%

Interpretation: 94% of the customers are satisfied with the spares
availability in the market and 6% of the customers are dissatisfied and
complained that they are not up to the mark.
11. Rating on Dealership:
Table: 11
Rating on Dealership Number of Percentage of
Excellent 65 65%
Good 20 20%
Average 10 10%
Poor 5 5%
Total 100 100%

Interpretation: 65% of the customers rated dealership as excellent,
20% of them told good and 10% of the customers rated average and
5% said dealership network is poor.
12. Rating on Servicing Station.
Table: 12
Rating on Service Number of Percentage of
Station respondents respondents

Excellent 5 5%
Good 10 10%
Average 20 20%
Poor 65 65%
Total 100 100%

Interpretation: Service station must have improvement. 65% of the
customers rated as poor servicing by the company, 5% rated excellent,
10% rated good and 20% of the customer rated as average.

CHAPTER – 6
FINDINGS
 Most of the people surveyed are from the age group of 18-30 i.e. 53%.
33% respondents are from age group of 30-35, 8% are from 35-45 and
6% are above 45 age group.
 Only 20% of respondents are using Autos for Business, 68% are Auto
Drivers and 12% of people are using for Agriculture.
 20% of people are having Ape. 32% are having Atul auto, 20% have
Mahindra, 20%, T.V.S and 12% respondents have Bajaj.
 30% of the respondents said Atul auto is excellent, 60% said it is good
and 10% said brand image of Atul auto is satisfied.
 Majority of share i.e. 46% of people are dissatisfied with service offered
by the Company, 18% complained about crank, 24% with Clutch and
12% respondents have complaint regarding gearbox.
 78% of customers said that spare parts’ prices are high and 22% said
that spare parts’ prices are not high.
 76% of customers are satisfied with the Vehicle they are using and
24% of respondents have complaint about the product and are
dissatisfied.
 12% of the respondents will not recommend to others to buy vehicles
they have and 88% will recommend to others.
 88% of respondents will prefer to buy Atul Auto from market while 12%
of the respondents will not prefer to buy Atul Auto.

 94% of the customers are satisfied with the spares availability in the
market and 6% of the customers are dissatisfied and complained that
they are not up to the mark.
 65% of the customers rated dealership as excellent, 20% of them told
good and 10% of the customers rated average and 5% said dealership
network is poor.
 Service station must have improvement. 65% of the customers rated
as poor servicing by the company, 5% rated excellent, 10% rated good
and 20% of the customer rated as average.

CHAPTER – 7
SUGGESTIONS
 Atul Auto must concentrate more on C.N.G segment to be a
competitor to Bajaj C.N.G autos in occupying local markets.
 Spares particularly Crank, Engine oil and Chassis are on high rates. So
customers are buying Duplicate spares which are available in the local
market and encouraging them.
 A constant urge to upgrade and keep pace with the changing times
gives organization the competitive advantages or cutting edge over the
competition.
 The service centre must be ready with all type of spare parts all over
the time.
 The after sale service has to be improved and make availability at
service centres even in rural areas so as to face the competition
existing in the segments.
 There is very less advertising for Atul Auto. The advertising has to be
done repeatedly so that the brand awareness could be maintained and
new customers are attracted, which helps in improving the market
share.
 Introduce low instalments and low down payment schemes to attract
more people.
 Satisfy existing customers by giving more values and offers.
 Company has to contact the customers more and more frequently.
 Inspect the servicing centres continuously so that they try to follow
rules and regulations strictly, and will serve the car on time.

 All the Three wheeler products of Atul Auto must be available at the
each and every showroom.
 Company must try to tap the rural areas with the help of print media
and hoardings.

CHAPTER – 8
BIBLIOGRAPHY
BOOKS:
 Marketing management by Philip Kotlar
 Principles of marketing by Philip Kotlar and Amstrong
 Research Methodology by R C Kothari
 Consumer Behavior by Loudon and Della Bitta
WEBSITES:
http://www.atulauto.com
http://www.google.com
www.siam.org

CHAPTER – 9
ANNEXURE
QUESTIONNAIRE
1. Customer Name :
Address
Telephone number-
2. Vehicle Details:
Registration number:
Model Name:
Purchased date……… Engine number…… Chassis number………
Traveled KMS…….. Driven by Owner….. Driven by Driver……
3. Customer Business Details………………………
If you had any other Vehicles……………………
Traveled Kms per one day…………………for how many kms are you
giving your vehicle for servicing…………….
4. Which brand of vehicle do you have?
 Mahindra and Mahindra
 Atul auto
 Ape
 TVS
 Bajaj

5. How is the brand image of Atul Auto?
 Execellent
 Good
 Bad
6. If you face any problem repeatedly regarding vehicle………
 Yes
 No
7. If Yes, What kind of problem._____________________________
8. If you feel that spare parts prices are high?
 Yes
 No
9. Are you Satisfied with your Vehicle?
 Yes
 No
10. Would you recommend buying vehicle to others, that you are using?
 Yes
 No
11. Will you buy any vehicle from Atul Auto?
 Yes

 No
12. Availability of spares parts in the market, do you feel comfort.
 Comfortable
 Not up to the mark
13. Does your vehicle reached your expectations?
 Yes
 No
14. Your rating on Dealership?
 Excellent
 Good
 Average
 Poor
15. Your rating on Service station?
 Excellent
 Good
 Average
 Poor
16. Your Valuable suggestions.
About vehicle………………………………………………
About Dealer………………………………………………
About company……………………………………………

Consumer Behavior and Effect of Marketing Strategy On Atul Autofinal-1

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CHAPTER – 1

DESIGN OF THE STUDY

The Indian economy has been influenced by impressive industrial

resurgence and automobile industry is definitely one of them. The

automotive industry has played a commendable role in the rapid

industrial and economic growth of the country. Due to the economic

liberalization a number of global automobile manufacturers have found

India as one of the premier business destinations.

An overview of the automotive industry of the country clearly indicates

that the emergence of three wheelers as an effective mode of

transportation has benefited millions of Indians. Three wheelers are not

Today’s companies are facing their toughest competition ever, due to

very much important to understand consumer behavior.

1.2 OBJECTIVES OF THE STUDY

● To study marketing mix of Atul Auto Ltd.

En No. 110288197 PP 108523 LOKESHKUMAR

● To find out the brand awareness for Atul Auto.

● To find out the customer’s perception of the Atul Auto.

● To study views and opinions of the customers regarding Atul

auto vehicles, company and dealers.

● To know various promotional efforts undertaken by the company

● To find out and present efficiency of service department.

1.3 RESEARCH METHODOLOGY

1.3.1 Research Design

A research design is the arrangement of the condition for collection

and analysis of data. Actually it is the blueprint of the research

Research design used was descriptive type.

1.3.2 Data Collection

 Primary Data : It was collected through structured

questionnaire. Questionnaire will contain close ended

 Secondary Data : The Secondary Data collection involve

internet search, browsing magazines, newspapers and

articles and papers related to the automobile industry in

India. Numerous Journals and books related to the topic will

also be browsed to understand the dynamics of the industry.

En No. 110288197 PP 108523 LOKESHKUMAR

Sample Size : 100

Sample Unit : Individual

Sampling technique : Convenience sampling

1.3.4 Data Analysis

1.4 LIMITATIONS OF THE STUDY

 I have considered Ahmedabad City for survey because of time and

 Finding of the study will be based on the assumptions that

respondents have given correct information.

 Information provided by respondents may be biased.

 The study is restricted only to the organized sector of two wheeler

 The sample size is comparatively very small compared to the

 The study is academic in nature.

 The final conclusion can be also affected by some of the

En No. 110288197 PP 108523 LOKESHKUMAR

The automobile industry is one of the biggest industries in the world.

Being a major revenue and job generating sector it drives the

economies of some of the superpowers of the world. In India the

wheeler segment has grown by leaps and bounds.

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 automobile industry in India is world’s third largest, with the

country currently being the world's seventh largest commercial vehicle

manufacturer. The government aims to develop India as a global

manufacturing as well as a research and development (R&D) hub. It

has set up National Automotive Testing and R&D Infrastructure Project

(NATRiP) centres as well as a National Automotive Board to act as