CHAPTER 1 INDUSTRY PROFILE

CHAPTER 1 INDUSTRY PROFILE

1.1 HISTORY OF THE AUTOMOBILE

The history of the automobile begins as early as 1769, with the creation of steam engine automobiles capable of human transport. In 1806, the first cars powered by an internal combustion engine running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine.

1.1.1 EARLY AUTOMOBILES GROWTH & DEVELOPMENT

Ferdinand Herbiest, a member of a Jesuit mission in China, built the first steam-powered vehicle around 1672, designed as a toy for the Chinese Emperor,

Second (1771) version

It being of small scale and unable to carry a driver or passenger but, quite possibly, the first working steam-powered vehicle ('auto-mobile')

A replica of Richard Trevithick's 1801 road locomotive 'Puffing Devil'

Steam-powered self-propelled vehicles large enough to transport people and cargo were first devised in the late 18th century. Nicolas-Joseph Cannot demonstrated his faddier vapeur ("steam dray"), an experimental steam-driven artillery tractor, in 1770 and 1771. Such vehicles were in vogue for a time, and over the next decades such innovations as hand brakes, multi-speed transmissions, and better steering developed. Some were commercially successful in providing mass transit, until a backlash against these large speedy vehicles resulted in the passage of the Locomotive Act (1865), which required self-propelled vehicles on public roads in the United Kingdom to be preceded by a man on foot waving a red flag and blowing a horn. Among other efforts, in 1815, a professor at Prague Polytechnic, Josef Bozek, built an oil-fired steam car. What some people define as the first "real" automobile was produced by AmdeBolle in 1873, who built self-propelled steam road vehicles to transport groups of passengers. The American George B. Selden filed for a patent on May 8, 1879. His application included not only the engine but its use in a 4-wheeled car.

The four-stroke petrol (gasoline) internal combustion engine that constitutes the most prevalent form of modern automotive propulsion is a creation of Nikola us Otto. The similar four-stroke diesel engine was invented by Rudolf Diesel.

1.2 INTERNAL COMBUSTION ENGINES 1) 1885 2) 1870 'first Marcus 3) The second Marcus car of car' 1888

Early attempts at making and using internal combustion engines were hampered by the lack of suitable fuels, particularly liquids, and the earliest engines used gas mixtures. About 1870, in Vienna, Austria (then the Austro-Hungarian Empire), inventor Siegfried Marcus put a liquid-fuelled internal combustion engine on a simple handcart which made him the first man to propel a vehicle by means of gasoline. Today, this car is known as "the first Marcus car". In 1883, Marcus secured a German patent for a low-voltage ignition system of the magneto type; this was his only automotive patent. This design was used for all further engines, and the fourseat "second Marcus car" of 1888/89. This ignition, in conjunction with the "rotating-brush carburetor", made the second car's design very innovative. One of the first four-wheeled petrol-driven automobiles in Britain was built in Birmingham in 1895 by Frederick William who also patented the disc brake; and the first electric starter was installed on an Arnold, an adaptation of the Benz Velo, built between 1895 and 1898.
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In all the turmoil, many early pioneers are nearly forgotten. In 1891, John William Lambert built a three-wheeler in Ohio City, Ohio, which was destroyed in a fire the same year, while Henry Nadig constructed a four-wheeler in Allentown, Pennsylvania. It is likely they were not the only ones.

1.2.1 E-Bike:

The two-wheeled pedal powered bicycle was first conceived in Paris in the 1860s. By 1888 John Dunlop's pneumatic tire and the chain drive made possible the safety bicycle, giving the bicycle its modern form. The origins of the motorized bicycle or motorbike can be traced back to the latter part of the 19th century when experimenters began attaching steam engines to stock tricycles and Quadra cycles. The first true motorized bicycle is generally developed in 1868. One of the first gas motor-assisted bicycle designs was developed by Flix Millet in France around 1892/93. Millet's designs had both pedals and a fixed-crankshaft radial engine built into the back wheel. In 1896, E.R. Thomas of Buffalo, New York began selling gasoline engine kits for propelling ordinary bicycles. After forming the Thomas Motor Company, he began selling complete motorassisted bicycles under the name Auto-Bi. The Auto-Bi is generally considered to be the first production motorized bicycle made in the United States.

The 1900 Singer Motor Wheel was a wheel incorporating a small ICE power plant that could be substituted for the front wheel of a bicycle. A later design, the 1914 Smith Motor Wheel, was attached to the rear of a bicycle by means of an outrigger arm, a design later taken up by Briggs & Stratton.

1.2.2 Brass or Edwardian Era

Model-T Ford car in Australia in 1915

Named for the widespread use of brass in the United States, the Brass (or Edwardian) Era lasted from roughly 1905 through to the beginning of World War I in 1914. Within the 15 years that make up this era, the various experimental designs and alternate power systems would be marginalized. This system specified front-engine, rear-wheel drive internal combustion engine cars with a sliding gear transmission. Traditional coach-style vehicles were rapidly abandoned, and buckboard runabouts lost favor with the introduction of tonneaus and other less-expensive touring bodies. Safety glass also made its debut, patented by John Wood in England in 1905. (It would not become standard equipment until 1926, on a Rickenbacker) Some examples of cars of the period included: 1) 19081927 Ford Model T the most widely produced and available car of the era. It used a planetary transmission, and had a pedal-based control system. Ford T was proclaimed as the most influential car of the 20th century in the international Car of the Century awards. 2) 19101920 Bugattis Type 13 a notable racing and touring model with advanced engineering and design. Similar models were the Types 15, 17, 22, and 23.
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1.2.3 Vintage Era

1923 Lancia Lambda 1926 Austin 7 Box saloon

1926 Bugatti Type 35

1927 Ford Model A

1930 Cadillac V-16

19251928 Hanomag 2

Exemplary vintage vehicles:

1)

19221939 Austin 7 the Austin Seven was one of the most widely copied vehicles ever, serving as a template for cars around the world, from BMW to Nissan.

2)

19221931 Lancia Lambda very advanced car for the time, first car to feature a loadbearing monocoque-type body and independent front suspension.

3)

19241929 Bugatti Type 35 the Type 35 was one of the most successful racing cars of all time, with over 1,000 victories in five years.

4) 5)

19251928 Hanomag 2 / 10 PS early example of pontoon styling. 19271931 Ford Model A (1927-1931) after keeping the brass era Model T in production for too long, Ford broke from the past by restarting its model series with the 1927 Model A. More than 4 million were produced, making it the best-selling model of the era. Ford A was a prototype for the beginning of Soviet mass car production (GAZ A).

6)

1930 Cadillac V-16 developed at the height of the vintage era, the V16-powered Cadillac would join Bugatti's Royale as the most legendary ultra-luxury cars of the era.

1.2.4 Pre-WWII Era

Ford V-8 (Model B) Rolls-Royce Phantom III

Citron Traction Avant

Volkswagen Beetle

Exemplary pre-war automobiles:

1) 2)

19321939 Alvis Speed 20 and Speed 25 the first cars with all-synchromesh gearbox. 19321948 Ford V-8 (Model B) introduction of the powerful flathead V8 in mainstream vehicles, setting new performance and efficiency standards.

3) 4)

19341940 Bugatti Type 57 a singular refined automobile for the wealthy. 19341956 Citron Traction Avant the first mass-produced front-wheel drive car, built with monocoque chassis.

5) 6)

19361955 MG T series sports cars with youth appeal at an affordable price. 19382003 Volkswagen Beetle a design for efficiency and low price, which was produced for over 60 years with minimal basic change; it has the largest production in history with over 20 million units produced in several counties. The car was awarded the fourth place in the international Car of the XX Century competition. A new car echoing the styling of the original has been produced in the 21st century.

1.2.5 Modern Era

Toyota Corolla small Japanese Range best-selling car Rover, non-commercial Mercedes-Benz S-Class comfortable off-road vehicle European etalon of the mass high class car

BMW 3 Series technically Honda Accord one of the Ford Taurus mass American car perfect European small car world's most mass cars

Ford Focus one of the world's Toyota Prius the world's most Tata Nano Inexpensive car most popular hatchbacks iconic hybrid electric vehicle

The modern era is normally defined as the 25 years preceding the current year. However, there are some technical and design aspects that differentiate modern cars from antiques. Without considering the future of the car, the modern era has been one of increasing standardization, platform sharing, and computer-aided design. Some particularly notable advances in modern times are the widespread of front-wheel drive and all-wheel drive, the adoption of the diesel engine, and the ubiquity of fuel injection. While all of these advances were first attempted in earlier eras, they so dominate the market today that it is easy to overlook their significance Nearly all modern passenger cars are front-wheel drive monologue/unibody designs, with transversely mounted engines, but this design was considered radical as late as the 1960s. Since 2009 China became the new world's absolute car manufacturer leader with production more than US, Japan or all Europe. Besides of large growth of car production in Asian and other countries, Exemplary modern cars:

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1) 1966present Toyota Corolla a simple small Japanese saloon/sedan that has come to be the best-selling car of all time. 2) 1970present Range Rover the first take on the combination of luxury and four-wheel drive utility, the original 'SUV'. Such was the popularity of the original Range Rover Classic that a new model was not brought out until 1994. 3) 1973present Mercedes-Benz S-Class electronic Anti-lock Braking System, supplemental restraint airbags, seat beltpretensioners, and electronic traction control systems all made their debut on the S-Class. These features would later become standard throughout the car industry. 4) 1975present BMW 3 Series the 3 Series has been on Car and Driver magazine's annual Ten Best list 17 times, making it the longest running entry in the list. 5) 1977present Honda Accord saloon/sedan this Japanese sedan became the most popular car in the United States in the 1990s, pushing the Ford Taurus aside, and setting the stage for today's upscale Asian sedans. 6) 19811989 Dodge Aries and Plymouth Reliant the "K-cars" that saved Chrysler as a major manufacturer. These models were some of the first successful American front-wheel drive, fuel-efficient compact cars. 7) 1983present Chrysler minivans the two-box minivan design nearly pushed the station wagon out of the market, and presaged today's crossover SUVs. 8) 1984present Renault Espace first mass one-volume car of non-commercial MPV class. 9) 1986present Ford Taurus this mid-sized front-wheel drive sedan with modern computerassisted design dominated the American market in the late 1980s, and created a design revolution in North America. 10) 19891999 Pontiac Trans Sport was one the first of the one box cars. 11) 1997present Toyota Prius launched in the Japanese market, in September 2010 reached worldwide cumulative sales of 2.0 million units, becoming the most iconic hybrid electric vehicle in the world.

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12) 1998present Ford Focus one of the most popular hatchbacks across the globe that is also one of Ford's best-selling world cars. 13) 2008present Tata Nano The Tata Nano is an inexpensive( 100,000 ~ $2200), rearengine, four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market. 14) 2010present, Nissan Leaf and Chevrolet Volt an all-electric car and a plug-in hybrid correspondingly, were launched in the U.S. and Japanese markets in December 2010, becoming the first mass production vehicles of their kind.

1.3 AUTOMOBILE SCENARIO/PLAYERS 1.3.1 Global scenario Auto component market

Estimated market size US$ 6.7 bn (billion)

Estimated market size (2012) US$ 17 bn (billion) Presently a US$ 6.7 bn industry, The Indian auto ancillary industry is expected to touch US$ 17 bn by 2012.

1.3.2 INDIAN SCENARIO Two wheeler market

Present estimated size 5.4 mn unit per year

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1.3.3 INDIAN PLAYERS Home Players

Product Cars/SUVs Two-Wheelers Commercial Vehicle Tractors Players Suzuki, Honda, Toyota, Mitsubishi, GM, Ford, Daimler-Chrysler, Skoda, fiat Hyundai, Tata, M&M TVS, Hero, Honda, Bajaj, Yamaha, kinetic, LML Tata, Ashok Leyland, Tetra, Eicher-Mitsubushi, Swaraj- Mazda, M&M, Volvo Escorts, M&M, L&T, Punjab, Tractors, New Holland, ITL-Renault, JohnDeere.

Most global majors are now in India - be it in passenger cars, two-wheelers, commercial vehicles or tractors. Several new players have entered the Indian auto market industry, including DaimlerChrysler, Fiat, Ford, General Motors, Hyundai, Toyota Motor and Honda. Nearly two-thirds of the auto component production is consumed directly by Original Equipment Manufacturers (OEMs).

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CHAPTER 2 COMPANY PROFILE

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CHAPTER 2 COMPANY PROFILE

2.1 INTRODUCTION TO THE HYUNDAI MOTORS
The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung Chung established Hyundai Auto Service in Seoul, South Korea at the age of 31 years. The name Hyundai was chosen for its meaning which in English translates to modern. The Hyundai logo is symbolic of the company's desire to expand. The oval shape represents the company's global expansion and the stylized "H" is symbolic of two people (the company and customer) shaking hands. Hyundai Motor Company was founded by Ju-Yung Chung and younger brother Se-Yung Chung in December 1967. In 1968 the company entered into a contract with Ford motor company to assemble the Ford Cortina and Granada for the South Korean market and continued to produce them until 1976. Hyundai completed construction of the Ulsan plant in six months and achieved the shortest groundbreaking to first commercial production of any of Fords 118 plants. The eight year journey provided Hyundai with assembly knowledge, blueprints, technical specifications, production manuals, and trained Hyundai engineers.

2.2 HYUNDAI HISTORY & DEVELOPMENT

o Established in 1967, Hyundai is presently South Koreas #1 carmaker, manufacturing dozens of models of cars, vans, and minivans o Throughout the past two decades, Hyundai introduced various models: Pony, Excel, Scoupe, Sonata, and Accent. o In 1990, Hyundai introduced its own engine design, the Alpha. Two years later, it introduced its second-generation engine, the Beta. o Acquired a 51% stake in Kia Motors in 1998

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o In 2001, Hyundai sold a 9% stake to DaimlerChrysler to strengthen its global market position and to boost sales abroad o In 2003, according to Consumer Reports, Hyundais reliability rankings tied Hondas. o In 2005, Hyundai authorized Ed Voyles' Hyundai dealership in Smyrna, Georgia to become the first "deaf friendly" dealership in the entire world. The staff in this dealership are able to accommodate deaf customers with the use of American Sign Language and video conferencing phones. o In 2006, J.D. Power and Associates' quality ranking, overall the Hyundai brand ranked 3rd, just behind Porsche and Lexus, and beating longtime rival Toyota o The brand overall is ranked much higher than the average industry and resale value continues to improve; a comparable 2003 Hyundai Sonata sedan ranks just $2200 below a similarly equipped Honda Accord, according to Kelley Blue Book Pricing 2006

2.3 HYUNDAI GLOBAL SEGMENT CARS Model lineup

Excel Accent Atos/Santro Azera Dynasty Elantra Grandeur Grandeur XG/XG300/XG350 Grandeur/Azera Matrix/Lavita Santamo Sonata/i40

Equus/Centennial Tiburon/Coup/Tuscani Genesis Genesis Coupe Click/Getz i30 i20

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2.4 HYUNDAI CAR SEGMENT IN INDIA CARS

Santro i 10 Accent Elantra Tucson Getz i 20 Verna Sonata

2.5 HYUNDAI'S ENTRY IN INDIA

One of the major players that entered the Indian car market was HMC through its subsidiary HMIL. Before making its move, the company closely studied the industry for a year. The company's officials talked to vendors, dealers and customers to get a thorough knowledge of the industry Hyundai is currently the second largest carmaker and largest auto exporter in India.It is making India the global manufacturing base for small cars. Hyundai sells several models in India as of the 2009 model year, one of the most popular being the Hyundai i10 and the Hyundai i20. Other models include Hyundai Santro, Hyundai Getz, Hyundai Accent, second generation Hyundai Verna, Hyundai Tucson, Hyundai Elantra, and the Hyundai Sonata.

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2.6 STUDYING THE INDIAN CONSUMER PSYCHE

In the late 1990s, car manufacturers like Ford, General Motors, and Fiat were faring miserably in the Indian market. Maruti had a market share of a whopping 79 percent in the passenger car segment. Daewoo and Telco were creating hype over the impending launches of their cars Matiz and Indica, respectively. In such a scenario, the top management of Hyundai Motor India Ltd, which has South Korean origins, had a tough decision to make. It was a big gamble to go ahead with the launch of the small car Santro. The Hyundai management stuck to a simple strategy launch a quality product in the most promising segment with the latest technology and price it aggressively. In the pre-launch period in late 1997, the company commissioned market research project to understand the Indian consumer psyche and specify a benchmark for the pricing policy.

Marketing Santro
Santro received an encouraging feedback from customers who appreciated its unique design that gave more headroom and facilitated easy entry and exit...

2.7 MARKETING STRATEGIES

o Hyundai tied up with the advertising agency Saatchi o Shah Rukh Khan as Brand ambassador Three-pronged Strategy was desinged to attract the consumer: o Educate Indian Consumers about Hyundai o Create hype and expectations about the Santro o Explain the virtues of the Santro

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2.8 THE SUCCESS STORY

September 23, 1998 saw the launch of the Santro. There was an unprecedented rush for bookings in spite of the fact that Hyundai was accepting bookings only against full payment for the car and booking was opened only for a few days. Hyundai closed the calendar year 1998 with sales of 8,447. The next year (October 1998-August 1999) saw Hyundai consolidating its market share, as these figures of monthly sales show: Thus, the cumulative sales during October 1998-August 1999 were 42,283 units. This accounted for 30 per cent of the market share in the small car segment and 10 per cent of the overall auto industry. Within a year of its launch, the Santro had dislodged the Maruti Zen as the no.1 car in its category and slipped in behind Maruti Suzuki as the no.2 car manufacturer in India. The launch of the Daewoo Matiz and the TATA Indica failed to dampen the demand for the Santro. Ever since the historic launch of the Santro, Hyundaihas consistently has taken the no.1 spot in all the segments of the passenger car industry in which it had launched a product. Santro stands tall undisputedly market leader in the compact car segment.

2.9 LAUNCH OF ACCENT

By mid-1999, the major players realized that the 'B' segment would be the fastest growing in the car industry. To cash in, Telco re-launched its 'Indica' by introducing several new features and solving the glitches in the original model...

2.10 REPOSITIONING SANTRO

By late 2002, the competition in the B segment had increased significantly. MUL's Alto which was launched in October 2000 had received a good response. Although HMIL's Santro remained the largest selling car in the B segment, MUL commanded the largest market share in this segment due to the combined sale of its three cars Zen, Wagon R and Alto...

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2.11 RECENT HAPPENING

Domestic sales surge by 92.8% Cumulative growth up 28.5% Hyundai Motor India Ltd, the countrys second largest car manufacturer and the largest passenger car exporter registered record cumulative sales for the month ending November 30, 2009. The cumulative sales accounted for 55,265 units which reflect a 28.5% growth as compared to last November. The domestic market was the biggest gainer as it almost doubled its sales to 28,162 units this month registering a growth of 92.8% over the same month last year. The exports however showed a slight decline as it fell by 4.6% as compared to the same period last year. In September, 2009 HMIL had clocked cumulative sales of 53,802 units which had been the highest till now. HMILs total sales for November, 2009 stood at an all-time high of 55,265 units against 43,020 units in November, 2008 registering 28.5% cumulative growth. The domestic sales grew at a whopping 92.8% and accounted for 28,162 units as against 14,605 units in November, 2008 while the exports dipped marginally to 27,103 units as compared to 28,414 units last November a fall of 4.6% Commenting on November, 2009 sales Arvind Saxena, Sr. Vice President - Marketing and Sales, HMIL said, The overall economic scenario has been positive and this has translated in to more footfalls in the showroom and higher automobile sales as indicated by this months figures. We hope the economy will continue on a growth trajectory as it will help the Indian automotive industry to maintain a double digit growth figure. The segment-wise cumulative sales in the month of November, 2009 are as follows: A2 Segment (Santro, i10, Getz & i20) 50,501 units; A3 Segment (Accent & Verna) 4,748 units; A5 Segment (Sonata Transform) 15 units; and SUV Segment (Tucson) 1 unit.

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CHAPTER 3 CONCEPTUAL FRAMEWORK

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CHAPTER 3 CONCEPTUAL FRAMEWORK

3.1 OBJECTIVES OF HUINADAI MOTORS
First year Objectives: We are aiming for 5% market share of the Indian market through unit sale volume of 100000. Second year Objectives: We are aiming for 10% market share of the Indian market. An important objective will be to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary.

3.2 TARGET MARKETS OF HUINADAI MOTORS

Hyundai Pas marketing strategy is differentiated marketing. Our primary consumer target is middle to upper income professionals who need true value for their money and comfortable ride in city conditions. Our secondary consumer target is college students who need style and speed. Our primary business target is mid-sized to large sized corporates that want to help their managers and employees by providing them a car for ease of transport. Our secondary business target is entrepreneurs and small business owners who want to provide discounts to managers buying a new car. Each of the four marketing strategies conveys Hyundai Pas differentiation to the target marketing segments identified above.

3.3 POSITIONING OF HUINADAI MOTORS

Using product differentiation we are positioning the Hyundai Pa as the most versatile, convenient, value added car model for above target market used. The marketing strategy will be focused on promoting the car as economic car for the next generation.
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3.4 MARKETING MIX 3.4.1 PRODUCT

Features: The all-new Hyundai Pa is fully loaded with a range of exciting new features. It's a perfect complement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to a brand-new high. European Styling. Japanese Engineering. Dream-Like Handling. The new Hyundai Pa is a generation different from Getz and Santro design. Styled with a clear sense of muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive. Its solid look is complemented by an equally rooted road presence and class-defining ride quality. New chassis systems allow for the front suspension lower arms, steering, and gearbox and rear engine mounting to be attached to a suspension frame. You get lower road noise and a greater feeling of stability as you sail over our roads with feather-touch ease.

3.4.2 PRICE
Hyundai is expected to take Maruti heads on with the pricing of their upcoming Hyundai Pa car. After launching cars for the masses since so many years, Indias second largest automobile manufacturer is now targeting the premium segment with their latest model from the Hyundais stable. The analysts predict the pricing of this premium hunchback to start from Rs. 3 lakh. This price range would practically rip apart Marutis offering in Zen Estilo, which is priced at a higher tag of Rs. 3.5 lakh. Both the companies are known for their value based offerings and Hyundai with their extensive service network and brand reputation for making reliable cars should get the customers nod over their competition. The official pricing however is still not out. However, the company is said to be studying the prospects of launching the base model at the 3 - lakh price tag.
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if they indeed do take the chance of pricing Hyundai at a considerable lower price than Zen Estilo , they would quite likely force the competition to rethink their strategy. Model Accent I 10 Santafe Santro Sonata Verna Price 5.07 Lakh to 5.40 Lakh 3.55 Lakh to 6.01 Lakh 21.46 Lakh to 24.37 Lakh 2.85 Lakh to 3.96 Lakh 14.65 Lakh to 17.15 Lakh 7.00 Lakh to 11.00 Lakh

3.4.3 PROMOTION 1) Road Shows

The company plans to stage road shows, to display vehicles in the pavilions during various college festivals and exhibition. This car will appeal to youngsters more.

2) Television advertisements
Advertisements to promote and market our product will be shown on leading television channels. Major music and sports channels will promote and they will reach out to the youth will be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers.

3) Radio
Radio is the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other people's radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about the product features and price, qualities, etc.

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4) Print Ads
Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations.

5) Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people aware about the companies past performance and product features, its affordability and usage, vast distribution network. Road shows will be conducted where free trials of the car would be given.

6) Banners, neon signs

Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to promote our brand car.

7) Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets will provide information about our company; the products offered which suits the customers need accordingly.

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3.5.4 PLACE / DISTRIBUTION

Registered Office & Factory Irrugattukottai, NH No. 4, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu - 602105 Telephones: 044 47100000, Fax: 044 - 47100500

o The Stockist will represent 3 to 4 districts in a State. o The Dealer will represent a district or main City. o The Sub-Dealer shall represent a particular area or taluka.
o

The booking agents will be individuals working on freelance basis

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CHAPTER 4 RESEARCH METHODOLOGY

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CHAPTER 4 RESEARCH METHODOLOGY

4.1 OBJECTIVE OF THE RESEARCH
o To study Automobile Industry. o To study company profile of Hyundai. o To study sales and marketing strategies of Hyundai motors. o To study occasion when consumer prefer to purchase the Hyundai car. o To study which car of Hyundai consumer want to purchase. o To study most important factor at the time of purchase Hyundai car.

4.2 BENEFIT OF THE STUDY

o To know customers expectation regarding Hyundai motors. o To know People which model mostly prefer. o It helps the company to know whether their current marketing strategies are effective or not.

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4.3 THE RESEARCH PROCESS

Following are the research process which can be useful to determine the project and project title also. There are mainly eight steps of the following charts:-

FORMULATING THE RESEARCH PROBLEM CHOICE OF RESEARCH DESIGN DETERMINING SOURCES OF DATA DESIGNING DATA COLLECTION FORMS DETERMINING SAMPLING DESIGN AND SAMPLING SIZE ORGANIZING AND CONDUCTING THE FIELD SURVEY PREPARING THE RESEARCH REPORT

4.3.1 Formulating the Research Problem

It is very first and most important step in the applied research process because, poorly defined problem will not yield useful results. It is rightly said A problem well defined is half solved. Poorly defined problem cause confusion and do not allow to develop a good research design. In this study researcher find problem like o Decline the sales so which strategies are uses. o People mostly which model prefers that dont know.

Research Topic
Sales and marketing strategy of Navjeevan Hyundai Moters with respect to Surat City in November-December 2011
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Sampling Unit
The individuals or objects whose characteristics are to be measures are called sampling unit. The sampling units always identify the objects to be studies. It is necessary that the universe is well defined. The researcher want to study on Sales and marketing strategy of Navjeevan Hyundai Moters , so the researcher may consider all customers of Navjeevan Motors, Surat as sampling unit.

4.3.2 Choice of Research Design

The research design is the blue print of the study. A research design is a logical and systematical planning and it helps directing a piece of research. Types of research design are following:

Research Design

Exploratorystu dy

Descriptive Study

Causal Study

Litrature Search

Experince Survey

Focus Group

Analysis of Selected Cases

Longitudinal

Cross Section

Natural Ex.

Controlled Ex.

True Panel

Omnibus Panel

Sample Surver

Time Series

Cross Sectional Designs

Combination of These Two Design

Descriptive research design was taken by the researcher for Sales and marketing strategy of
Navjeevan Hyundai Moters with respect to Surat City in November-December 2011Because this, research design is focused on accurate descriptive of the variable present in the problem. A descriptive study is undertaken when the researcher wants to know the characteristics of certain groups such as age, sex, education level, income, occupations, etc.

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4.3.3 Determining Sources of Data

After research design has been selected, the other important step is to collect the required data. There are two types of data: 1) Primary Data, 2) Secondary Data. For the purpose of the study, primary data is collected by directly personal interview of the respondents to collect their view about Navjeevan Motors, Surat. This was flat necessary because people in gravel have a tendency in answering question. There are some secondary data collected from Internet, websites, magazine to collect the proper information and the industry details about Hyundai Motors, Navjeevan Motors, Surat.

4.3.4 Designing Data Collection Forms

Once the decision in favor of collection or sources of data, one has to decide the mode of collection. The two methods are available:

1) Observation Method
o This method suggests that data are collect through ones observation. If the researcher is a keen observer, with integrity he would be in a position to observe and record data faithfully and accurately. While the observational method may be suitable in the case of some studies, several things of interest such as attitudes, opinions, motivations and other intangible states of mind cannot be observed.

2) Survey Method
o In marketing research, field surveys are commonly used to collect primary data from the respondents. Surveys can be 1) Personal, 2) Telephonic, 3) Mail, 4) Diary. The researcher decided to collect data through primary data collection; the researcher was selecting the survey method for collection of primary data. In the survey method, the researcher selects personal survey for data collection. For the collection of required primary data, the
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researcher prepared the questionnaire, which is enclosed at the end of the topic. The questionnaire includes two types of question that is single choice, multi-choice and rank question.

4.3.5 Determining Sampling Design and Sampling Size

When the researcher had decided to carry out a filed survey, he had to decide whether it is to be a census survey or sample survey. The researcher was select a sample survey for his research as it has an overwhelming advantages over a census survey and it is not possible for researcher to meet every and each customers of Surat city as it has population is large.

Sample size: In sample size the researcher have taken 125 samples as a sample size which
include 125 as a personal interview.

4.3.6 Organizing and conducting The Field Survey

After selection of sample size and sample method, the researcher was went for a field survey. The researcher was collected required data by filing up the questionnaire from various respondents.

4.3.7 Processing and Analyzing the Collected Data

When the researcher was complete his field survey, the researcher processed the collected data and analyze it in a systematic manner so as the researcher derived results from it. In order to derive meaningful outcomes from the data, the researcher formed the data in tables and then uses various statistical tools and interprets the data as it shown in the chapter of findings and analysis of data.

4.3.8 Preparing the Research Report

After data had been tabulated, interpreted and analyzed, the researcher prepared his report embodying the findings of his research study and his recommendations.
32

CHAPTER 5 DATA ANALYSIS & INTERPRETATION

33

CHAPTER 5 DATA ANALYSIS & INTERPRETATION

1) Do you like to purchase Hyundai car?

Option Yes No Response 87 38 125

30% Yes No 70%

Interpretation: - From the above charts we can infer that in 70% (87) respondents are aware
of automobile and 30% (38) responses are not aware of automobile.

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2) At which time have you like to purchase Hyundai car?

Option New year/Diwali Any festival Any Special Dates like Birthday, Anniversary etc Any time Response 24 19 32 12 87

14% 27% New year/Diwali Any festival Any Special Dates like Birthday, Anniversary etc 37% 22% Any time

Interpretation: - From the above table 27%(24) people like to buy car at the time of New
Year/Diwali, 22%(19) at Any festivals like Navratri, 37% (32)at special dates like birthday, Anniversary &14% (12)like to buy at Any time

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3) Which car model do you like to purchase?

Option i-10 i-20 Accent Verna Sonata Embera Santro Santafe(SUV) 19 7 11 87 Response 8 9 18 15

13% 8%

9% i-10 10% i-20 Accent Verna

22%

21%

Sonata Embera Santro Santafe(SUV)

17%

Interpretation: - From the above research we conclude that 9% (8)like i-10,10%(9) like i20,21%(18) like Accent,17% (15)like verna,22% (19)like Sonata Embera,8%(7) like Santro,13% (11)like Santafe(SUV).

36

4) Which types of Gear car do you like to buy?

Option Manual Gear Auto Gear 63 24 87 Response

28% Manual Gear Auto Gear

72%

Interpretation: - From the above table 72 %( 63) Hyundai car lover like Manual Gear car and
28 %( 24) like Auto Gear car.

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5) Which factor attracts your purchase of Hyundai car?

Attributes Excellent Very Good Good Poor Very Poor Price Quality Colour Scheme 15 31 39 23 13 37 29 19 39 15 16 35 15 2 2 9 5 2 1 1

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A. Price (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 15 13 39 15 5 Total = 87 WAM Wi 5 4 3 2 1 Fi Wi 75 52 117 30 5 279

6% 17% 17% Excellent Very good 15% good poor Very poor 45%

Interpretation: - From the above table 17%(15) are excellent, 15%(13)very good,45%(39)
good, 17%(15)poor & 6%(5)very poor with the price.

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B. Quality (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 31 37 15 2 2 Total = 87 WAM Wi 5 4 3 2 1 Fi Wi 155 148 45 4 2 354

2% 2%

17% 36%

Excellent Very good good poor Very poor

43%

Interpretation: - From the above table 36%(31) are excellent, 43%(37)very good,17%(15)
good, 2%(2)poor & 2%(2)very poor with the quality.

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C. Colour (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 39 29 16 2 1 Total = 87 WAM Wi 5 4 3 2 1 Fi Wi 195 116 48 4 1 364

2%

1%

19% Excellent 45% Very good good poor Very poor 33%

Interpretation: - From the above table 45%(39) are excellent, 33%(29)very good,19%(16)
good, 2%(2)poor & 1%(1)very poor with the colour.

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D. Scheme (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 23 19 35 9 1 Total = 87 WAM Wi 5 4 3 2 1 Fi Wi 115 76 105 18 1 315

1% 10% 27% Excellent Very good good poor 40% 22% Very poor

Interpretation: - From the above table 27%(23) are excellent, 22%(19)very good,40%(35)
good, 10%(9)poor & 1%(1)very poor with the scheme.

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5.1) Weighted Average Mean

Option Price Quality Color Scheme Very Good 3.21 4.07 4.17 3.62

4.40 4.20 4.00 3.80 3.62 3.60 3.40 3.21 3.20 3.00 Price Quality Colour Scheme 4.18 4.07

Interpretation: - From this diagram researcher may interpret that colour and quality are most
attractive factors.

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6) Are you aware about Navjeevan Hyundai motors?

Option Yes No Response 64 23 87

26%

Yes No

74%

Interpretation: - From the above charts we can infer that in 74% (64) respondents are aware
about Navjeevan Hyundai motors and 26% (23) responses are not aware about Navjeevan Hyundai motors.

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7) Have you seen any advertisement of Navjeevan Hyundai motors?

Option Yes No Response 63 1 64

2%

Yes No

98%

Interpretation: - From the above charts we can infer that in 98% (63) respondents are seen any
advertisement of Navjeevan Hyundai motors 2% (1) responses are not seen any advertisement of Navjeevan Hyundai motors.

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8) By which source you seen advertisement of Navjeevan Hyundai motors?

Option Television Newspapers and magazine Hoarding Other Response 16 24 19 5 64

8% 25% Television News papers and magazine Hoarding Other 37%

30%

Interpretation: - From the above charts we can infer that in 25%(16) respondents get
information on Television,37%(24) respondents get information on Newspaper& magazine,30% (19) respondents get information on Hoarding,8% (5) respondents get information on Other.

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9) Which types of advertisement are effective as your point of view?

Option Television Newspapers and magazine Hoarding Other Response 25 19 12 8 64

12% Television 39% 19% News papers and magazine Hoarding Other 30%

Interpretation: - From the above charts we can infer that in 39% (25) respondents are believe
that Television,30%(19) respondents are believe that Newspaper& magazine,19% (12) respondents are believe that Hordings,12% (8) respondents are believe that Other.

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10)

Have you seen any publicity related Navjeevan Hyundai motors?

Option Response Yes No 54 10 64

16%

Yes No

84%

Interpretation: - From the above charts we can infer that in 84% (54) respondents are seen any
publicity related Navjeevan Hyundai motors and 16% (10) responses are notseen any publicity related Navjeevan Hyundai motors.

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11)

At which occasion you seen publicity related Navjeevan Hyundai motors?

Option At award ceremony At opening new outlets Car festival Auto expo Other Response 9 19 15 13 8 64

13%

14% At award ceremony

20% 30%

At opening new outlets Car festival Auto expo Other 23%

Interpretation: - From the above charts we can infer that in 14% are seen publicity at award
ceremony, 30% at opening new outlets, 23% car festival, 20% Auto expo, 13% from other.

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12) Are you aware about sales promotion scheme of Navjeevan Hyundai motors?
Option Response Yes No 59 5 64

8%

Yes No

92%

Interpretation: - From the above charts we can infer that in 92% (59) respondents are aware
about sales promotion scheme of Navjeevan Hyundai motors and 8% (5) respondents are not aware about sales promotion scheme of Navjeevan Hyundai motors.

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13)

Which scheme you know under the Navjeevan Hyundai motors?

Option Free insurance Free accessories Cash discount Free services Exchange offers Response 5 11 8 36 1 61

2% 8% Free insurance Free accessories Cash discount Free services 59% 13% Exchange offers

18%

Interpretation: - From the above charts we can infer that in 8%(5) respondents are known
about free insurance,18%(11) respondents are known aboutfree accessories,13%(8) respondents are known about cash discount,59%(36) respondents are known aboutfree services and 2%(1) respondents are knowabout exchange offers.

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14) Do you prefer to buy at the existing promotional schemes of Navjeevan Hyundai motors?
Option Response Yes No 58 6 64

9%

Yes No

91%

Interpretation: - From the above charts we can infer that in 91% (58) respondents are prefer to
buy at the existing promotional schemes of Navjeevan Hyundai motors and 9% (6) respondents are notprefer to buy at the existing promotional schemes of Navjeevan Hyundai motors.

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15)

Rate of the following parameters of Navjeevan Hyundai motors?

Attributes Quality Price Brand image Promotional offer Availability of car

Excellent Very Good Good Poor Very Poor 16 18 27 19 18 15 18 19 24 15 17 31 17 14 18 21 16 2 8 4 3 6 2 0 3 0 0 4 2

Services after sales 27

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A. Quality (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 16 15 31 2 0 Total = 64 WAM Wi 5 4 3 2 1 Fi Wi 80 60 93 4 0 237

3% 0%

25% Excellent Very good good 48% 24% poor Very poor

Interpretation: - From the above table 25%(16) are excellent, 24%(15)very good,48%(31)
good,3%(2)poor & 0%(0)very poor with the quality.

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B. Price (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 18 18 17 8 3 Total = 64 WAM Wi 5 4 3 2 1 Fi Wi 90 72 51 16 3 232

5% 12% 28% Excellent Very good good 27% poor Very poor 28%

Interpretation: - From the above table 28%(18) are excellent, 28%(18)very good,27%(17)
good,12%(8)poor & 5%(3)very poor with the price.

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C. Brand Image (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 27 19 14 4 0 Total = 64 WAM Wi 5 4 3 2 1 Fi Wi 135 76 42 8 0 261

0% 6% Excellent 42% Very good good poor Very poor 30%

22%

Interpretation: - From the above table 42%(27) are excellent, 30%(19) very good,22%(14)
good,6%(4) poor & 0%(0) very poor with the brand image.

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D. Promotional offer (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 19 24 18 3 0 Total = 64 WAM Wi 5 4 3 2 1 Fi Wi 95 96 54 6 0 251

0% 5% 30% 28%

Excellent Very good good poor Very poor

37%

Interpretation: - From the above table 30%(19) are excellent, 37%(24) very good,28%(18)
good,5%(3) poor & 0%(0) very poor with the promotional offer.

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E. Availability of car (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 18 15 21 6 4 Total = 64 WAM Wi 5 4 3 2 1 Fi Wi 90 60 63 12 4 229

6% 9% 28% Excellent Very good good poor 33% 24% Very poor

Interpretation: - From the above table 28%(18) are excellent, 24%(15) very good,33%(21)
good,9%(6) poor & 6%(4) very poor with the availability of car.

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F. Services after sales (5= Strongly Agree,..,1= Strongly Disagree)

Response (Fi) 27 17 16 2 2 Total = 64 WAM Wi 5 4 3 2 1 Fi Wi 135 68 48 4 2 257

3% 3%

Excellent 25% 42% Very good good poor Very poor 27%

Interpretation: - From the above table 42%(27) are excellent, 27%(17) very good, 25%(16)
good,3%(2) poor & 3%(2) very poor with the services after sales.

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15.1) Weighted Average Mean

Option Quality Price Brand image Promotional offer Availability of car Very Good 3.70 3.63 4.08 3.92 3.58

Services after sales 4.02

4.20 4.10 4.00 3.90 3.80 3.70 3.70 3.60 3.50 Quality Price Brand Image Promotional Availability offer of car Services after sales 3.63 3.58 4.08 4.02 3.92

Interpretation: - From this diagram researcher may interpret that brand image and service
after sales of Navjeevan Motors are better.

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16)

Are you aware about brand ambassador Hyundai motors?

Option Response Yes No 42 22 64

34% Yes No 66%

Interpretation: - From the above charts we can infer that in 66% (42) respondents are aware
about brand ambassador of Hyundai motors and 34% (22) respondents are notaware about brand ambassador of Hyundai motors.

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17)

Income per Month.

Option < 20,000 20,000 to 40,000 40,000 to 60,000 > 60,000 Response 12 80 18 15 125

12%

10%

14%

< 20,000 20,000 to 40,000 40,000 to 60,000 > 60,000 64%

Interpretation: - From the above charts we can interpret that 10% respondents income are <
20,000 rupees, 64% 20,000 to 40,000 rupees, 14% 40,000 to 60,000 rupees and 10% >60,000 rupees.

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CHAPTER 6 FINDING & CONCLUSION

63

CHAPTER 6 FINDING & CONCLUSION

5.1 FINDING
o 70% respondents are like to purchase Hyundai car and 30% are not. o 27% people like to buy car at the time of New Year/Diwali, 22% at Navratri, 37% at birthday, Anniversary &14% at any time. o 9% like i-10, 10% like i-20, 21% like Accent, 17% like verna, 22% like Sonata Embera, 8% like Santro, 13% like Santafe(SUV). o 72 % Hyundai car lover like Manual Gear car and 28 % like Auto Gear car. o From Weighted Average Mean researcher may interpret that colour and quality are most attractive factors. o 74% respondents are aware about Navjeevan Hyundai motors and 26% (23) responses are not. o 98% respondents are seen any advertisements of Navjeevan Hyundai motors 2% are not. o 25% respondents get information on Television, 37% on Newspaper& magazine, 30% on Hoarding, 8% (5) other. o 39% respondents are believed that Television is effective, 30% to Newspaper& magazine, 19% to Hordings, 12% to other. o 84% respondents are seen any publicity related Navjeevan Hyundai motors and 16% are not. o 14% are seen publicity at award ceremony, 30% at opening new outlets, 23% car festival, 20% Auto expo, 13% from other. o 92% respondents are aware about sales promotion scheme of Navjeevan Hyundai motors and 8% are not. o 8% respondents are known about free insurance,18% aboutfree accessories,13% about cash discount,59% known aboutfree services and 2% about exchange offers.

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o 91% respondents are prefer to buy at the existing promotional schemes of Navjeevan Hyundai motors and 9% are not. o From Weighted Average Mean researcher may interpret that brand image and service after sales of Navjeevan Motors are better. o 66% respondents are aware about brand ambassador of Hyundai motors and 34% are not. o 10% respondents income are < 20,000 rupees, 64% 20,000 to 40,000 rupees, 14% 40,000 to 60,000 rupees and 10% >60,000 rupees.

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5.2

CONCLUSION
In my serve I found that Sonata Embera, Accents and Verna are the most popular cars of Hyundai motors.

o o o o

From Weighted Average Mean researcher may interpret that colour and quality are most attractive factors. From Weighted Average Mean researcher may interpret that brand image and service after sales of Navjeevan Motors are better than other. From this study conclude that TV and newspaper are most effective medium of advertisement.

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CHAPTER 7 SUGGESTION

67

CHAPTER 7 SUGGESTION
o Navjeevan Hyundai motors should give more promotional offers to increase their customers. o Navjeevan Hyundai motors should give more sales after service to satisfy their customers. o Hyundai car should give the car on delivery time. o Hyundai have to do more advertisement for Santro because only 8% know about it.

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BIBLIOGRAPHY
Books:
Name Marketing Research: Research Design Business Research Method Statistical Methods Author G.C. Beri

Donald R. Cooper & Pamela S. Schindler S P Gupta

Websites:
o www.en.wikipedia.org o http://dir.indiamart.com/impcat/hyundai motors.html

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ANNEXURE
QUESTIONNAIRE
I Kakadiya Tulsi S. student of S.P.B. College of business administration. I am doing my winter project on. Sales & Marketing Strategies Adopted by Navjeevan Hyundai Motors. This information is purely for an academic purpose, and will be kept completely confidential. 1. Are you aware about automobile? [ ] Yes [ ] No

2. Do you like to purchase Hyundai car? [ ] Yes (If, no then please stop) 3. At which time do you like to purchase Hyundai car? [ ] New year/Diwali [ ] Any festival [ ] Any Special Dates like Birthday, Anniversary etc [ ] Any time [ ] No

4. Which car model do you like to purchase? (Multi choice option) [ ] i-10 [ ] Accent [ ] Sonata Embera [ ] Santafe(SUV) 5. Which types of Gear car do you like to buy? [ ] Manual gear [ ] Auto gear [ ] i-20 [ ] Verna [ ] Santro

70

6. Which factor attracts your purchase of Hyundai car? Particulars Price Quality Color Scheme 7. Are you aware about Navjeevan Hyundai motors? [ ] Yes [ ] No Excellent Very good good poor Very poor

(If, no then please stop) 8. Have you seen any advertisement of Navjeevan Hyundai motors? [ ] Yes [ ] No

9. By which source you seen advertisement of Navjeevan Hyundai motors? [ ] television [ ] newspapers and magazine [ ] hoarding [ ] other 10. Which type of advertisement is effective as your point of view? [ ] television [ [ ] newspapers and magazine ] other

[ ] hoarding

11. Have you seen any publicity related Navjeevan Hyundai motors? [ ] Yes [ ] No

12. At which occasion you seen publicity related Navjeevan Hyundai motors? [ ] at award ceremony [ ] car festival [ ] at opening new outlets [ ] auto expo

[ ] other

71

13. Are you aware about sales promotion scheme of Navjeevan Hyundai motors? [ ] Yes (If, no then go to question no.15) 14. Which scheme you know under the Navjeevan Hyundai motors? [ [ [ ] free insurance ] cash discount ] exchange offers [ ] free accessories [ ] No

[ ] free services

15. Do you prefer to buy at the existing promotional schemes of Navjeevan Hyundai motors? [ ] Yes [ ] No

16. Rate of the following parameters of Navjeevan Hyundai motors? parameter Quality Price Brand image Promotional offer Availability of car Services after sales 17. Are you aware about brand ambassador Hyundai motors? [ ] Yes (If, yes go to the question no.19) [ ] No excellent Very good good poor Very poor

18. Who is a brand ambassador of Hyundai motors?

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19. Give your suggestion.

NAME:-............................................................................................................... AGE:-...........................PH.NO.:-.............................................................................. ADDRESS:-.......................................................................................................... INCOME:-...................................................................................... ..................................................................................................................

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