LITERATURE REVIEW

Indian Economy has undergone a radical transformation in the last three decades. The discoveries and invention in various fields of life is perhaps being the reasons for this transformation. The marketing strategy in India which was practiced in the olden days has either been changed or been refined so as to adjust with this dynamic world. If we consider the early years of development of our economy, It is observed that the producers consumers as well as production and consumption is becoming more and more complex and specialized. The present emphasis is one matters of providing a complete comfort or status to the customers every walk of life. In the light of the present marketing scenario, through this project, How HYUNDAI MOTOR & TATA MOTOR can increase its market share in automobile industry emphasis on marketing.

Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers and benefits for the stakeholders. - Philip Kotler

This Project report tries to take a look on various aspects on Marketing and study of Marketing strategies adopted by Hyundai Motors India Limited (HMIL) & Tata Motors with a special focus on Hyundai Santro & Tata Nano.

INTRODUCTION

INDIAN AUTOMOBILE INDUSTRY A market is never saturated with a good product, but it is very quickly saturated with a bad one. - Henry Ford

The automotive industry is one of the largest industries worldwide and in India as well. The automotive sector is a vital sector for any developed economy. It drives upstream industries like steel, iron, aluminium, rubber, plastics, glass and electronics, and downstream industries like advertising and marketing, transport and insurance.

The automotive industry can be divided into five sectors:1) Passenger Cars 2) Multi- Utility Vehicles (MUVs) 3) Two- and Three- Vehicles 4) Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial Vehicles (MHCVs) 5) Tractors We will be looking at the Passenger car industry in India.

Despite a head start, the passenger car industry in India has not quite matched up to the performance of its counterparts in other parts of the world. The primary reason has been the all-pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury.

The following table presents a comparative view of the extent of motorization in India vis--vis certain other countries in the world. Country Passenger Cars in Use Two-Wheelers in Use

per Thousand Persons per Thousand Persons Developed Countries U.S.A United Kingdom Japan Germany Emerging Economies China Indonesia Philippines South Korea India 3 14 10 167 5 8 62 14 59 27 478 373 395 508 14 12 115 36

OBJECTIVES

Some of the Objectives which are focused upon in this report are: A comprehensive analysis of Indian Automobile Industry. To study the Marketing Strategies of Hyundai & Tata. To focus on Marketing Mix of Hyundai & Tata To study the consumer satisfaction level with focus to Hyundai & Tata Milestones achieved by Hyundai & Tata Recommendations and observations regarding Hyundai & Tata

HYUNDAI MOTORS INDIA LIMITED

Hyundai Motor India Ltd. (HMIL) is a wholly owned subsidiary of the Hyundai Motor Company (HMC), Korea, a part of the Hyundai Motor Group comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated companies, with a combined turnover of over US$ 50 Billion. The Hyundai Motor Group with a presence in over 185 countries and combined annual sales of over 3 million units is one of the fastest growing auto manufacturers in the world.

HMIL has emerged as the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 26 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata in the E segment and the Tucson and Terracan in the SUV segment.

The company recorded combined sales of 215,630 during calendar year 2006 with a growth of 43% over year 2007. HMIL is India's fastest growing car company having rolled-out over 700,000 cars in just over 70 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,700 crores. HMIL has recorded a staggering growth of 149% in exports over the year 2007.

HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 150,000 units per annum, raising HMILs total production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL is investing to expand capacity in line with its positioning as HMCs global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the companys greater focus on the quality of its after-sales service, HMILs service network will be expanded to over 1,000 in 2007. HMIL has many awards in its bouquet. It was declared The Star Company amongst unlisted companies by Business Standard this year. Getz got the coveted Car of the Year 2007 award twice over. It was declared a winner by both Business Standard Motoring and CNBC-TV18 Autocar Auto awards. Hyundai Elantra won the CNBC-TV18 Autocar Best Value for Money Car Award. HMIL was also the Manufacturer of the Year two years in a row in 2006 and 2007. ICICI Overdrive Awards declared Hyundai as the Car Maker of the Year in 2007. Hyundai products with state of the art technology have also been winning many accolades over the years. Santro bagged top honours in JD Power Asia Pacific for three years.

Accent was ranked No. 1 in J D Power Asia Pacific APEAL for two years and also got Business Standard Motoring Jury award for its CRDi model.

HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. The following table shows the HMILs cars and the various segments they belong to as in the Indian market. HMILs Car

Segment

Classification

Price (Ex Showroom in Delhi)

B B+ C D E SUV

Sub - Compact Compact Mid Size Premium Luxury Sports Vehicle

Santo Xing Getz Accent Elantra Sonata

Rs. 278999 Rs. 421000 Rs. 529000 Rs. 853793 Rs. 1399000 Rs. 1462999 Rs. 2059151

Utility Tucson Terracan

NEW MILESTONES

The Indian passenger car market is a highly competitive market. Although its growth has been hi in past several years, profitability has been impacted because of rising costs, change in excise policies and intense price competition. With the developed countries like USA and UK having 350 as an average no of cars per thousand persons it is very low in India (5). So in future, the arena of competition is most likely to be shifted to developing countries like India and that too in a highly competitive segment like B-Segment. With the opening of economy and relaxing norms by government, the market has started witnessing the entry of new global players like Toyota, Honda and GM in the Indian market, pointing to further intensification of competition in future. With the consumer attaching higher value to the features and economy in case of car buying, the players are likely to focus more o product development (to incorporate dvanced features in their designs) and advertisements (to set up their own positions in a consumer mind). HMIL is emerging as a major player in Indian passenger car market. Its products are Santro and Accent are success stories in themselves. But the buck does not stop here only. Its parent company HMC is focusing upon HMIL as a base to integrate its production and R & D facilities across Asia Pacific. For that HMIL is planning to increase its present production capacity of 2.5 lakh cars per year to 4 lakh cars per year by 2007.

Exports are also another front which is giving HMIL an intense opportunity to expand. For the first six months of this fiscal HMIL has

exported cars worth Rs. 1,325 crores and targeting an overall export of over Rs. 2,700 crores in this fiscal up from Rs. 1,700 crores in 2006-07. HMIL has sold a total of 236,878 vehicles in the Calendar Year 2007 so far, achieving a growth of 21% over the January-November sales in 2007. While domestic sales in January-November, 2007, were 148,515 - a growth of 16.6% over the previous year, overseas sales during the period stood at 88,363 units - a growth of 29%. In November, 2007, HMI sold a total of 21,725 units - 14,010 vehicles in the domestic market and 7,715 cars in the overseas market. Over the years, HMIL has been focusing on effective brand building and consumer strategy. This has contributed towards enhancing their bottom line. A significant contribution in this success is of the advertisement strategy adopted by HMIL. It has changed its advertisements time and again. Now HMIL has started a new initiative under which they have started their own in house advertising agency known by the name of Innocean which will handle its all promotions. With the new initiatives, HMIL is all set to achieve its ambitious growth of 30% in sales over last year. Thus, Hyundai motors India limited is all set to conquer the Indian passenger car industry.

AWARDS & RECOGNITIONS

As one of the fastest growing automobile compaies in India, Hyundai has many accomplishments to its credit. Business Standard - Star Company Award to Hyundai Motor India

JD Power Asia Pacific Hyundai Santro has topped the JD Power Asia Pacific Initial Quality Study (IQS) that measures product quality for three years in a row (Years 2007, 2006 and 2007) Hyundai Santro has topped the JD Power Asia Pacific APEAL study that measures customer satisfaction for three years in a row (Years 2006, 2007 and 2008) Hyundai Accent has topped the JD Power Asia Pacific IQS for 2007 and the APEAL study for 2006 and 2007. Business Standard Motoring Hyundai Getz is BS Motoring's 'Car of the Year' 2007 BS Motoring BS 1000 Company of the year 2007 Hyundai Motor India Limited Hyundai Santro is BS Motoring's 'Car of the Year' for 1999 CNBC Hyundai Getz is the CNBC Autocar Car of the Year 2007 Hyundai Elantra Best Value for Money Car of the Year 2007 Company Awards CNBC Autocar India Hyundai has been the manufacturer of the year for two years in row.

PRODUCT - HYUNDAI SANTRO The Santro was launched on September 23rd 1998 in the Indian market and the company sold around 17000 units in first five months. The Tall Boy concept was well taken by the Indian Customer. Since its inception Santros sales has been achieving an annual growth rate of about 20% on an average. An advertising campaign starring Shah Rukh Khan and Preity Zinta was unleashed to further boost the sales and this has certainly proven to be effective. As a result of which Santro has now become a market leader in its own Segment (B-Segment) leaving earlier market leader Maruti Zen and Tata Indica. Repositioned from being a family car to an individuals first car, within a short span of time the Santro has been able to capture the hearts and minds of the consumers.

The following table gives the ex-showroom prices of all the variants of Santro: Models Santro XK Non AC (Solid) Santro XK Non AC (Metallic) Santro XK AC (Solid) Santro XK AC (Metallic) Santro XL (Solid) Santro XL (Metallic) Santro XO (Solid) Santro XO (Metallic) Santro Xing AT (Solid) Santro Xing AT (Metallic)

Ps of Hyundai Motor India Ltd. With focus to Hyundai Santro Ever since its launch in 1998 the Santro has proved to be the best compact car in India, thanks to its excellent design and extensive testing for over 100,000 kilometers in real Indian road and climate conditions. It is clever design that gives cars this touch of practical beauty. Hyundai has come up with a vehicle that surprises with its ability to utilize space extraordinarily well. The Hyundai Santro is probably the first of the `bigsmall' cars that hit Indian roads. Set between the B and C segments in terms of size and price, the Santro attempts to offer trim quality, interior space and build quality on a par with the pricey sedans. First it was Santro. Then it got renamed as Santro Zip Drive. After a while, Santro Zip Drive got replaced by Santro Zip Plus. And then came its new global' car, Santro Xing. Yes, Santro Xing is the new avatar of the Santro Zip Plus. However, this time it is not just a change in the name; the new avatar also looks different from its predecessor. The Santro Xing comes in five versions, including automatic transmission, and has a new sporty exterior with safety features which meet European standards. The Santro Xing is available in nine colours viz., Ebony Black, Noble White, Satin Grey, Fairy Leaf, Forest Dew, Husky Blue, Mystic Lavender, Passion Red and Bright Silver. The colours present a varied choice to consumers in picking a car that most closely defines their personality. Consumers can have a feel of the color right from their homes by logging on to the website of Santro Xing. Santro Xing comes with all new looking feel exterior and interior styling. That, coupled with new advanced features, offers the best comfort & luxury in the favourite compact car. New bigger & brighter clear headlamps, smiling radiator grille, power operated rear windows with child lock and lots of other smart features like the seat under tray are the hallmarks of your Sunshine Car. Santro is being

produced exclusively in India and the Indian Xing will now drives the World. The idea was to create a constant hype around Santro to give it that competitive edge and make it the truly sunshine car.

CHIC AND CLEAN Hyundai calls the Santro a Euro-styled, premium hatchback. If simple straight lines and a practical, consistent design theme are indicative of pronounced European-styling, then the Santro belongs to that class. European or not, the Santro is a good-looking car that is also upfront about its focus on practicality, with marginal excesses in design, a trait that could not be associated with Hyundai's first car for the Indian market the Santro. Its exterior styling gives it a sort of dual personality. The large format, clear lens-type headlamp cluster dominate the car's frontal view. The short, sloping bonnet and the single-slat grille seem to visually add some more measure to the Santros already class-leading width. These features as well as the broad front bumper and the sharply raked windscreen make it look very sedan-like, when viewed from the front. The muscular shoulder flanks and the prominent, flaring wheel arches give ita wellplanted, aggressive profile. SIMPLE INTERIORS The interiors of the Santro wear a fresh and simple look. The finish quality is good and dimensional accuracy of dashboard and door panels rival those of a few C-segment cars. The soft feel plastic used for the dashboard panels adds a touch of class, but the dimpled finish may be a bit difficult to clean and maintain in Indian conditions.

There are ample storage options, including the deep glove box, the removable ashtray cup, bottle and cup holders at the front and rear, seat side pockets, coin storage on the door handles, bag hook at the rear of the front passenger seat and the 60:40 split, folding rear seats that go on to more than treble the boot storage space. The instrument cluster is housed in a simple semicircular dashboard panel and features two rounds, chrome-lipped gauges for the rpm meter and speedometer. The cluster also features a digital clock and trip meter. Power and tilt-adjustable steering is standard. The centre console features a brushed aluminum slap-on panel and houses rotary type controls of the HVAC (airconditioning) system and positive type controls for the rear defogger, hazard lights and fog lamps. The dual adjusting air-conditioner louvers look sophisticated and add to the Santros up market image. The dashboard extends more than a foot into the cabin. While this gives the driver even more open storage space on the flat faced top, at the bottom, after the dashboard tapers off, the driver and co-passenger get loads of recessed leg space. ENGINE & TRANSMISSION The Santro had been brought in with Hyundai's new 1,341cc, in-line, four-cylinder, SOHC engine that develops a maximum power of 82.9PS at 5,500 rpm and a peak torque of 11.8 kgm at 3,200 rpm. With the peak torque kicking at a low 3,200 rpm, you will not have to rev the engine up to a grunt to get the best out of it. However, as the Santro's engine is mapped for economy, there is a mild lag before the torque kicks in the first three gears. The other side of this slightly slow, but steady rise in torque is that this powerful 1.3-litre engine is surprisingly tolerant of lower speeds in every gear slot. As a result, knocking is minimal

obviating frequent shifts to a lower gear. So, while the Santro delivers a lively performance in city traffic, the lull before peak torque kicks in may be only a tad bothersome on the highway. But once you are past 3,000 rpm, it zips. KEY TECHNICAL SPECIFICATIONS AND FEATURES Santro Xing Dimension and Weight Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheelbase (mm) Min. Turning Radius Engine Number of cylinders Number of valves Engine Displacement(cc) Performance Maximum (ps@rpm) Output 63@5500 3565 1525 1590 2380 4.4 m 4 12 1086

Maximum (kgm@rpm)

Torque 9.1 / 4000

Tyres

Size

155/70 R 13 Radial

THE SECOND P THE PRICE

Using money as a magnet to attract customers kills loyalty, mangles margins and encourages defections. But Unique Selling Price is

undoubtedly one of the roads to success in the intensely competitive automobile business. Ceteris Paribus, the purchase decision of the firsttime buyer is influenced by four factors---Price, Price, Price and Price. The first is the price of acquisition. The second is the price of finance or the rate of interest on the loan. The third is the price of maintenance, which includes the cost of fuel, service and spare parts. And the fourth is the price of disposal or the resale value of the car.

High indigenization stood Hyundai in good stead when it came to its entry pricing. Hyundai surprised its competitors with a under Rs.3 lakh (ex-factory) price, slightly below the Maruti Zen (Rs.3.2 lakh). Competitors and analysts criticized Hyundai for predatory pricing, but Hyundai maintained that the low price is a result of high indigenization level and effective ancillarisation. This gave Hyundai a strong foot-hold as its production costs were lower. Hyundai ensured cost competitiveness through tie-up between Lumax (well known supplier of lighting systems) with Hyundais Korean vendor Samlip, to form Lumax-Samlip Industries. This was because they were operating on much better overhead absorption, being suppliers to other manufacturers in India. Also, they already had a grasp of technology because they had partnerships with Japanese, European or American companies.

Hyundai offers a comprehensive range of finance packages to suit all budgets, including Hyundai Finance which as an affiliated finance company offers complete financing packages tailored to individual requirements. Hyundai also has tie ups with banks like ICICI, Bank of America, KPML etc to offer loans to buyers.

The following table gives the ex-showroom prices of all the variants of Santro:

Models Santro XK Non AC (Solid) Santro XK Non AC (Metallic) Santro XK AC (Solid) Santro XK AC (Metallic) Santro XL (Solid) Santro XL (Metallic) Santro XO (Solid) Santro XO (Metallic) Santro Xing AT (Solid) Santro Xing AT (Metallic)

Ex-Showroom Price (in Rs.) 2,78,999 2,82,973 3,32,999 3,36,972 3,55,999 3,59,972 3,81,999 3,85,975 4,24,324 4,24,298

70% of the cost of a car over its lifetime goes in maintenance. Accordingly, in Hyundai, pre-delivery inspection takes place at three stages---one, after the car rolls off the assembly line, the next when it is loaded into the auto compound and finally, at the dealers premises before it is handed over to the customers. This increases the time between services for Santro. For instance, Maruti recommends services after every 5,000 kilometers; whereas Hyundai recommends it after every 10,000 kilometers. Similarly, the engine oil, filter assembly for the Santro is priced lower than that for the Maruti Zen. This low-cost proposition for spares offers an added advantage when a buyer compares running costs.

Hyundai realized the difficulty to compete in the car markets and decided to go for a sharp differentiation strategy. In order to avoid the price game,

it decided to reinforce the individualistic positioning of the brand and tried to match the customers perception that the car is a commodity using other differentiators. Hyundai opted against the drop in prices, one reason being the fact that, buyers are shopping for brand associations and customers are unlikely to let their decisions be swayed by savings of a few thousands. THE THIRD P THE PLACE

Hyundai has spent time studying dealer networks. It found that dealers were inconveniently located, their behavior towards customers left much to be desired, and there was a lack of transparency in dealer operations. So the Hyundai outlook towards dealership is compact dealership instead of a mammoth network. The emphasis is on a dealer-customer relationship where each customer is given time. The company insists on a one-to-one relationship to build a long lasting association. To this end, the company insists on ownership and operation of dealerships resting on one person, thus reducing absenteeism and promoting immediate decisions.

HMIL has established a start-up network of 70 dealer workshops (now close to 150), equipped with the latest technology machines and international quality press, body and paint shops, across the country. These dealer workshops include company owned outlets called Hyundai Motor Plaza, that provide a Hyundai customer a one-stop shop for meeting all needs.

In place of large showrooms and workshops, Hyundai decided that the workshop should be ideally 10,000 sq.feet, which could be worked in three shifts and the showrooms it preferred were 1,600-1,800 sq.feet. Dealers who already had land would have to invest Rs.1.5 crores for the rest. With this infrastructure dealers can handle 200-250 cars a month, which gives them adequate time to establish rapport with customers. The company has also cut expenses of its dealers by keeping inventories low. Hyundais dealers are given limited stock. This does not mean that Santros spares come late. On the contrary, the cars parts are available within 24 hours.

The dealer network is established with the objectives of providing the customer the very best through a 24 hour hotline system, round the clock workshop services, roadside services with tow away facilities, round the clock helpline services, etc. THE FOURTH P THE PROMOTION If you're trying to persuade people to do something, or buy something, it seems to me you should use their language, the language in which they think. - David Ogilvy Strapped with the tagline Smarter people drive Santro Hyundai Santro hit the Indian roads nearly a decade back. Hyundai Santro being a much admired lifestyle brand was launched in nine colors with a colorful and jazzy advertising campaign developed by its advertising agency Saatchi and Saatchi. Hyundai set aside as high as Rs 5 crore for advertising and promotions each month. Effective advertising can add immense value to

brands, even in the small car segment, where the typical customer is far more informed and aware of the product behind the brand. Hyundai Motor India Ltd (HMIL) realized Indian consumers' penchant for unique designs soon after their entry into India. With the run away success of the Santro, HMIL was right with its promotion strategy and came up with a winning campaign. Hyundai Santro has come a long way from its original Santro version to Santro zip drive moving on to Santro zip plus and now to the newer and refreshed Santro Xing, employing a different tag-line and promotional approach each time.

INTRODUCTION OF TATA GROUP

The story of Tata group of business unfolds with the birth of its founder Jamshed ji Tata in the small town of Navasari in Gujarat in 1839. He breathed his last in 1904 in Germany. His parents were Nuseerwan ji and Jeevanbai Tata. Nuseerwan ji was the first businessman in a family of parsi Zorastrian priests. Destiny called him to Bmbay where he started trading. Jamshed ji joined him at the tender age of fourteen. He took admission in Elphinstone college and while still a student he married Hirabai Daboo. Jamshed ji graduated in 1858 and joined his father trading firm. Those were turbulent times. The British had just managed to ruthlessly crush the 1857 Revolt. Since the age of twenty-nine Jamshed ji continued to work in his fathers firm. In 1868 he started a trading company on his own with a capital of Rs.21,000/- his first step was to acquire a bankrupt oil mill and convert it into a cotton mill which he renamed Alexander Mill. Two years later he sold it with a good margin of profit. With this he set up a cotton mill in Nagpur in 1874. queen Victoria had just been declared the Empress and in keeping with the times Jamshed ji named it Empress mill. Jamshed ji was a unique personality. It was not just his own personal success but also of those who worked for him and his group. Jamshed ji was in close contact with revolutionary thinkers and nationalists like Dadabhai Naoroji and Pherozeshah Mehta and strongly influenced by them. He came to the conclusion that economic self-sufficiency should go hand with political independence. The former should be the base of the latter. Jamshed ji had three key ideas in mind. He wanted to set up an iron and steel company, world class learning institution and a hydroelectric plant. Unfortunately during his time none bore fruit but he had planted the seed, which later took roots

and spread its branches under the care of his successors. The only achievement that he lived to see was the taj mahal hotel .it was completed in December 1903 for a princely amount of Rs.4, 21,00,000/- in this too he was inspired by nationalist thinking. In those days the locals, that is Indians, were not allowed into the best European hotel . taj mahal hotel was a befitting reply to this discrimination. Tata group is a private conglomerate with headquarters at Mumbai. The present chairman is Ratan Tata who took over from J.R.D. Tata in 1991. A member of the Tata family is always the chairman of the group. Its operations covers many fields related to industry and allied activities concerned with knowhow and its application materials, engineering, automotive, information chemicals technology, energy,

communications,

telecommunications, software, hotels, steel and consumer goods. The statistics and figures of Tata group speak for themselves. Its revenue touches $967,229 million or $ 21.9 billion in 2005/06. This is equal to 2.8% of Indias GDP. There are about 246.000 employees in the tat group as per records of 2004. Market capitalization figure is $57.6 billion. There are ninety-six companies operating in seven business sectors. A only twenty-eight of the ninety-six in Tata group are publicly listed. Tata operates in more than forty countries across six continents. It exports products and services to one hundred and forty nations. The charitable trust of Tata of holds 65.8% of the ownership of Tata group TISCO now called Tata steel set up in 1907 Indias first iron and steel plant in Jamshedpur, whish is often called Tatanagar. Production actually started in 1912. It produce steel at the lowest cost in the word. This is mainly because it is assisted by group member concern that deals with the supply of raw material like coal and iron. In 1910 was set up Tata HydroElectric power Supply Company. In 1917 the Tata group made its debut

in the field of consumer goods industry with the setting up of Tata oil mill dealing in soaps, detergents and cooking oil. 1932 saw the establishment of Tata airlines. Tata chemicals made its appearance I 1939. Telco now known as Tata Motors started to manufacture locomotive and engineering products from 1945. January 2007 is a watershed in the history of Tata group. Tata steel made a successfyl bid for UK based corus group, which was one of the worlds leading steel and aluminum producers. After an unprecedented nine rounds of bidding Tata finally clinched the deal. Tata offered to buy 100% stake in Corus at 608p per share (all cash) totaling to a value of $12.04 billlion. It has turned out to be the biggest acquisition by any Indian Company. Tata Power is one of the largest private sector companies in India and supplies power to Mumbai and parts of New Delhi. Then there are Tata Chemicals and Tata Pigments. In the service sector there are Tata Companies dealing with hotels, general insurance and life insurance. Tata offers management, economic and financial consultancy services. Tata offers management, economic and finanacial consultancy services. Tata is one of the best names in the world of investments and shares. In the area of education Tatas publishing house of Tata McGraw Hill is a renowned name. Many renowned public sector companies and research organizations like Indian Institute of Science, Tata Institute of Fundamental Research, Tata Institute of Social Sciences, Tata Energy Research Institute and Air India (Tata Airlines) owe their origins to the name of Tata. Other educational institutes are Tata Institute of Science now Indian Institute of Science, Bangalore. Tata Institute of Fundamental Research Deemed University, Tata Management Training center, Pune, Tata Institute of Social Science deemed University and National Centre for the Performing Arts. The name of Tata is linked to consumer durables like tea, watches (Titan)

Tata Trent (Westside) to Tata skyand even gold and diamonds like Tanishq brand of jewellery. In Information systems and communications the Tata name comes with Computational & Research Laboratories, INCAT, Nelco, Nelito Systems, TCS and Tata Elxsi. There are software companies Tata Interactive Systems, Tata Infotech, Tata Technologies Ltd, Tata Teleservices, Tatanet etc. Tata acquired VSNL, the Indian telecom giant from Bermuda bassed Canadian company named Teleglobe in 2005. The aim of Tata Group to improve the quality of life in the society by virtue of integrity, understanding, excellence, unity and responsibility. The entire family known as the Tata Group shares these values. Tatas contribution to Indias education, science and technology has been widely documented and respected. The blue colored log of Tata speaks for fluidity as well as fountain of knowledge. In can also be seen as a tree under which all are welcome to take refuge.

INDUSTRY PROFILE

An embryonic automotive Industry emerged in India in the 1940 following the independence in 1953 the government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However the growth was relatively slow in the 1950s to 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970 the automotive industry started to grow but the growth was mainly driven by tractors, commercial vehicles and scooters, cars were still a major lixury Japanese manufacturers enterd the Indian market ultimately leading to the stablishment of maruti udyog. A number of foreign firms initiated joint venture with Indian companies.

In 1980s a number of Japanese manufacturers launched joint venture for building motorcycles and light commercial vehicles automobile company like TATA MOTORS, Mahindra and Mahindra, Ashok Leyland, Swaraj Mazda and Eicher are manufacturing high performance delivering LCVs. The LCVs produced by these companies are not only sold in India but are also exported to various foreign markets as well.

The last few years huga amount of investment have been made in automobile industry. With more global players getting interested in Indian automobile Industry, these investments are supposed to increase even more in the near future. Most of LCV manufacturers in the country are emphasizing on better research and development activities and efforts are being given to provide efficient after sales services to customers.

Some of the popular offerings in the field of light commercial vehicle from the TATA MOTORS stable are 407 and 709 of which the former has made a distinct mark in the category of Indian LCVs. However the recently Tata Ace has brought about dramatic change in the Indian LCV market. Low priced and attractively designed. The Tata Ace has been hugely popular and recorded significant production itself. Ashok Leyland is another major player with product like cargo 759 tipper to boast of with a wheel base of 3200 mm and 5 speed synchromesh gearbox; it has got 4 cylinder diesel power engines. sales in the first year of

COMPANY PROFILE

The TATA Group comprises 98 operating companies in seven business sector: Information systems and communication, Engineering, Materials, Services. Energy Consumer Products and Chemicals. The Group was founded by Jamsed Ji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. Consequently Jamsed Ji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the Groups ethos to this day. The TATA Group is one of the Indias largest and most respected business conglomerate, with revenues in 2006-07 of $ 28.8 billion (Rs. 129,994 crore) the equivalent of $ 60.56 billion as on April 3, 2008. TATA Companies together employ some 289,500 People. The groups 27 publicly listed enterprises among them stand out names such as TATA steel, TATA Consultancy Services, TATA Motors and TATA Tea have a combined market capitalization that is the highest among Indian business houses in the private sector, and a shareholder base of over 2.9 million. The TATA Group has operations in more than 80 Countries, six continents and its companies export products and services to 85 countries. The TATA Family of companies shares a set of Five Core Values: Integrity, Understanding, Excellence, Unity and Responsibility. These values which have been part of the Groups belief and conviction from its earliest days, continue to guide and drive the business decisions of TATA Companies. The Group and its enterprises have been steadfast and distinctive in their adherence to business ethics and their commitment to corporate social

responsibility. This is a legacy that has earned the Group the trust of many millions of shareholders in a measure few business houses anywhere in the world can match.

ORGANISATION STRUCTURE

When companies announce their annual reports or bask in the glow of successful deals, it is often the CEOs who take centre stage. However, a lot of the groundwork for a successful venture is done by another important functionary in the corporate machinery, the chief financial officer who goes by the humbler acronym of CFO. With rapid economic growth and increased globalization over the last decade the importance of the finance professional has grown manifold and for the top finance professional in an organization, the CFO, the changing dynamics of international business have caused him to adopt and adapt at a frenetic pace. All these and many other details were discussed at the closed-door two day CFO Strategies India 2009 Summit, organized by Dubai-based Naseba at the Hotel Le Meridien in Mumbai on 15 and 16 September 2009. Although an ideal township where nature is in perfect harmony with steel manufacturing, it was admittedly, a small operation with only 4 million tonnes annual capacity. Also, even though Tata Steel had a lea`ership position in finished goods like automobiles and white goods, in many other details were adopt and adapt at a frenetic pace. All these and many other details were discussed at the closed-door- two-day CFO Strategies India 2009 summit, organized by Dubai-based Naseba at the Hotel Le Meridien in Mumbai on 15 and 16 September 2009.

On the first day Kaushik Chatterjee group CFO, Tata Steel, treated the delegates to an enlightening session. In his 30-minute presentation M&A-growth strategy for value creation, Chatterjee spoke in detail on the growth of the Tata Group in general and Tata Steel in particular, all on the strength of mergers and acquisitions. Of particular interest were his views on the Corus acquisition of 2007 that had occupied the pages of pink sheets worldwide. Chatterjee candidly admitted that the earlier growth of the Tata Group had been largely organic as previous political regimes had not been very conducive to growth by acquisition, either domestic or international. He called the 10 years from 1992 onwards as the decade of transformation. Elaborating on the Arthur D Little recommendations for the group in the early 90s, Chatterjee said that the consultancy had been quite vocal on the groups needs to be internationally competitive, something quite alien to the house of Tata then. However the sleep growth curve that had started in 2000 with Tata Teas acquisition of Tetley grew even steeper and faster with one acquisition after another by different group companies, topping off with the $12.11-billion takeover of Corus last year. The meteoric growth strategy for Tata Steel in particular and how it grew to become the sixthlargest steel producer in the world. Of course, he didnt forget to mention that his company continues to be the Lowest-cost steel producer in the world as well. As of 2003 Tata Steel was essentially a one-site company centred in the pristine locales of Jamshedpur-aptly named after the great man who envisioned the place, Shri Jamshed Ji Nusserwan ji Tata. Although an ideal township where nature is in perfect harmony with steel manufacturing it was admittedly, a small operation with only 4 million tones annual capacity. Also even though Tata Steel had a leadership position in finished goods like automobiles and white goods in many

other aspects it lagged behind its competitors. More importantly as regards a foreign presence there was none Chatterjee spoke of how the senior management got together at this point of time to envision an aspirational target for the company as well as brainstorm on how to achieve it. From these high-level discussions emerged a target-15 million tones annual capacity by 2015 subsequently revised to 50 million tones a ten-foldplus increase in just ten-plus years. Of course the companys jewel in the crown Jamshedpur was to be very much a part of the action. Target capacity was set at 10 million tones by 2010 with gradual increments over the years: 4 to 5 million tones in 2005 (already achieved) 5 to 6.8 million tones in 2008 (on schedule) and 6.8 to 10 million tones in 2010 (expected). Reason behind these ambitious numbers Chatterjee explained that such an ambitious target wa born out of the managements confidence in a vibrant world economy with special emphasis on engines of growth like India, China, Russia, South-East Asia and Brazil. Indeed many of the companys recent investments bear ample Worlds cheapest car, Tata Nano has been unveiled in the 9th annual New Delhi Auto Expo today. With lots of hypes and expectations, this fourdoor car was made public in a festive mode. Lots of public interests created for this much-awaited Rs one lakh car, which many think, to be instrumental in peoples dream to shift from a two wheeler to a four wheeler. Tata Motors has dubbed it as Peoples Car, indicating its involvement to the people of root level. Nano is a supermini car which has some advantages over its competitor Maruti 800, which brought out a revolution in the Indian car industry about two decades ago. Nano has 21% more interior space with 8 % less

in its exterior from Maruti 800. Moreover, the price is deemed to give the biggest market advantage to Nano compared to other automakers in Indias price sensitive market. Tata Motors has already selected a place for the manufacturing plant of Nano in Singur, a backward area of Hoogly district in West Bengal. Actually, Tata Nano is going to create new market segment in Indian market. It is expected to lessen the difference in price level between two wheelers and four wheelers. So, industry analysts are thinking that the market of two wheelers will be affected with the advent of Nano. Industry analyst Deepak Jain has said in an interview that about 10% of twowheeler market will be taken away by Nano. ABOUT TATA NANO THE NANO CHASE : MARCH 2003: RATAN TATA REVEALED PLANS TO MAKE WORLDS CHEAPEST CAR AT GENEVA MOTOR SHOW. MAY 2006 : PREVIOUS SITE FOR NANO PLANT:-SINGUR. OCT 2006 : POLITICAL OPPOSITION BY TRINAMOOL CONGRESS. MAY 2007:PEACE TALKS BETWEEN STATE & TC FAILS; ONE MORE FARMER COMMITS SUICIDE. JAN 2008: RATAN TATA UNVEILS NANO AT DELHI AUTO EXPO ; CALCUTTA HC TERMS SINGUR LAND

ACQUISITION LEGAL. MAY 2008: SUPREME COURT REFUSES TO STAY NANO ROLL-OUT FROM SINGUR.

 AUG 2008 : RATAN TATA THREATENS TO EXIT SINGUR; AFTER ASSAULT FACTORY WORKER STAY AWAY FROM WORK. OCT 2008: TATA READY TO PULL OUT OF THE NANO PLANT FROM SINGUR AND DECLARES SANAND(GUJRAT) AS THE NEW MANUFACTURING LOCATION. MAR 2009: UNVEILS THE EUROPEAN VERSION OF NANO AT GENEVA MOTOR SHOW. 23RD MAR 2009: NANO LAUNCHED. CONCEPT AND DESIGN: THE PROJECT TO CREATE THE WORLD'S CHEAPEST PRODUCTION CAR BEGAN IN 2003, UNDER THE

CHAIRMAN OF TATA MOTORS, RATAN TATA, INSPIRED BY THE NUMBER OF INDIAN FAMILIES WITH TWOWHEELED RATHER THAN FOUR-WHEELED TRANSPORT. THE NANO'S DEVELOPMENT HAS BEEN TEMPERED BY THE COMPANY'S SUCCESS IN PRODUCING THE LOW COST 4 WHEELED ACE TRUCK IN MAY 2005. CONTRARY TO SPECULATION THAT THE CAR MIGHT BE A SIMPE FOUR-WHEELED AUTO RICKSHAW, THE TIMES OF INDIA REPORTED THE VEHICLE IS "A PROPERLY DESIGNED AND BUILT CAR".THE CHAIRMAN IS

REPORTED TO HAVE SAID, "IT IS NOT A CAR WITH PLASTIC CURTAINS OR NO ROOF IT'S A REAL CAR." TO ACHIEVE ITS DESIGN GOALS, TATA HAS REFINED THE MANUFACTURING PROCESS, EMPHASIZED

INNOVATION AND SOUGHT NEW DESIGN APPROACHES

FROM SUPPLIERS. THE CAR WAS DESIGNED AT ITALY'S INSTITUTE OF DEVELOPMENT IN AUTOMOTIVE ENGINEERING WITH RATAN TATA REQUESTING CERTAIN CHANGES, SUCH AS THE ELIMINATION OF ONE OF TWO WINDSCREEN WIPERS. THE NANO HAS 21% MORE INTERIOR SPACE AND AN 8% SMALLER EXTERIOR COMPARED TO ITS CLOSEST RIVAL, THE MARUTI 800. THE CAR WILL COME IN DIFFERENT VERSIONS, INCLUDING ONE STANDARD AND TWO DELUXE MODELS. THE DELUXE VERSION WILL HAVE AIR CONDITIONING, BUT NO POWER STEERING. THE INITIAL PRODUCTION TARGET SET BY TATA MOTORS IS 250,000 UNITS PER YEAR. COST SAVING METHODS: THE NANO'S BOOT DOES NOT OPEN, INSTEAD THE REAR SEATS CAN BE FOLDED DOWN TO ACCESS THE BOOT SPACE. IT HAS A SINGLE WINDSCREEN WIPER INSTEAD OF 2 SOME EXTERIOR PARTS OF IT ARE GLUED TOGETHER, RATHER THAN WELDED IT HAS NO POWER STEERING IT'S DOOR OPENING LEVER IS MUCH SIMPLER PRICE: TATA INITIALLY TARGETED THE VEHICLE AS "THE LEAST EXPENSIVE PRODUCTION CAR IN THE WORLD" AIMING FOR A STARTING PRICE OF 100,000 RUPEES OR

APPROXIMATELY US$2000 (USING EXCHANGE RATE AS OF MARCH 22, 2009) 6 YEARS AGO, DESPITE RAPIDLY RISING MATERIAL PRICES AT THE TIME. AS OF AUGUST 2008, MATERIAL COSTS HAD RISEN FROM 13% TO 23% OVER THE CARS DEVELOPMENT,AND TATA FACED THE CHOICE OF: INTRODUCING THE CAR WITH AN ARTIFICIALLY LOW PRICE THROUGH GOVERNMENT SUBSIDIES AND TAXBREAKS, OR FORGOING PROFIT ON THE CAR, OR USING VERTICAL-INTEGRATION TO ARTIFICIALLY

BOOST PROFITS ON CARS AT THE EXPENSE OF THEIR MATERIALS INDUSTRIES, OR PARTIALLY USING INEXPENSIVE POLYMERS OF A OR FULL

BIODEGRADABLE METAL-BODY, OR

PLASTICS

INSTEAD

RAISING THE PRICE OF THE CAR SUBSEQUENTLY HOWEVER MATERIAL PRICES DROPPED DRAMATICALLY AS A RESULT OF THE FINANCIAL CRISIS OF 20072009. COMPARISON: OVERALL LENGTH 3099 MM OVERALL WIDTH 1495 MM (& 1620 MM WITH ORVM) OVERALL HEIGHT 1652 MM WHEELBASE 2230 MM GROUND CLEARANCE 180 MM MIN.

 TURNING CIRCLE RADIUS 4 M SEATING CAPACITY 4 PERSONS FUEL TANK CAPACITY 15 LITERS NANO:600 KG NANO CX:615 KG NANO LX:635 KG

COMPARSION BETWEEN TATA NANO AND MARUTI 800

Specification Engine

Tata nano

Hyundai Santro inline three

623cc petrol parallel 1196cc twin. ,petrol.

Max power Performance Top speed Weight Fuel capacity Price(lakh) Mileage

34.5bhp@52520rpm 0-60kph in 8.66 secs 105kph 600kg 15 litre 1.34-1.85 23.4 kpl

42bhp@5800rpm 0-60kph:7.1secs 150kph 965kg 35 litre 3.56-4.56 16.5 kpl

RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

Sampling Techniques The next step in research study after collecting data is the sampling process. When a decision is made to use the sample, a number of factors

must be taken into consideration. The various steps involved in the sampling process are: Identifying target population. Determining sample frame. Selecting sampling procedure. Determine sample size. Execute sampling Obtaining information from respondents. Generating information for decision making.

The target population in this study was the STUDENTS & EMPLOYEES. The sampling technique had to be selected. There are two types of sampling techniques: Probability sampling Non-probability sampling

Stratified Sampling If the population from which a sample is to be drawn does not constitute a homogenous group, then stratified sampling technique is applied so as to obtain a representative sample. In this technique, the population is stratified into number of non-overlapping sub populations or strata and sample items are selected from each stratum. If the items selected from each stratum is based on simple random sampling, the entire procedure, first stratification and then simple random sampling is known as stratified sampling. The stratified sampling results in a more

reliable and detailed information. The researcher uses simple random sampling for selection of items from each stratum.

Data collection methods: After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature studies are important sources of secondary data. Data analysis and interpretation 1. Questionnaires 2. Pie chart and Bar chart

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Pie chart: This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent.

The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.

Bar chart: This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

SWOT ANALYSIS

Strengths Brand Name Large Distribution Network Wide product offering at different price points Cheapest Cars in corresponding segments Encouraging exports Awarded many awards Economy with technology

Weakness Lack of in house R & D New model introduction limited to only cosmetic changes Dominance mainly at lower level only (Santro)

Opportunity Rise of Indian middle class and small cities A booming economy Rising exports

Threats Many players fighting for the same cake Entry of new players Cannibalism

DATA ANALYSIS & INTERPRETATION

Q 1. DO YOU HAVE A CAR? Car Users Yes No No. of Respondents 40 60

Users of the Car

140 120 No. of Users 100 80 60 40 40 60

20
0 Yes No

Analysis It is clear from the above diagram that most of the people do not have cars.

Q 2. SPECIFY THE ONE? Car Category Hyundai Tata Nano Others No. of Respondents 50 30 20

Analysis

Others

Hyundai

Tata Nano

It is clear from the above diagram that the Hyundai have grabbed the major market share among the Car segment automobile market.

Q 3. WHO MOTIVATE YOU TO BUY THE CAR? Factors Your Family Society Status Life Style No. of Respondents 10 20 35 35

car
10

35

20 family society status life style

35

Analysis Most of the people as it is clear from the above diagram motivated by the life style, peer group and status factors to buy the car.

Q 4. WHAT ARE THE FEATURES YOU LOOK FOR YOUR CARS? Product Features Fuel Efficiency Style Comfort Price No. of Respondents 20 20 20 40

car
20

40 20

fuel style comfort price

20

Analysis It is clear from the diagram that mostly customers are looking fuel efficiency, price and comfort in his selection.

Q 5. WHAT ARE THE PRICE FACTORS, WHICH MOTIVATE YOU TO BUY THE CARS? Factors Reliable Schemes Discount Any Other No. of Respondents 25 20 45 10

car
10 25

reliable schemes discount any other 45 20

Analysis From the above diagram it is clear that the price factor such as reliable, discount and schemes motivate the people to buy the Cars.

Q 6. How much you are affected by the promotional efforts of the company? Promotional Efforts High Moderate Low No Effect No. of Respondents 40 20 30 10

car
10

40 High 30 Moderate Low No Effect

20

Analysis From the above the diagram it is clear that most of the buyer purchase decision is highly affected by the promotional effort of the company.

FINDINGS According to my survey, out of 100, responds 31% of the people says neither agree nor disagree about overall service provided by Hyundai & Tata Motors Out of 100 respondents 32% of the people moderate about tools & techniques From the source of field survey, out of 100 respondents 36% of the people agree with sufficient & genuine spares, According to my survey 60% of the people says labor charge is very high in the Hyundai & Tata Motors as compared to roadside or any other Authorized service centre. 45% of the respondents are disagreeing with the delivery of vehicle timings. In the samples taken out of 100 respondents 46% of the people says on road break down service is fair.

SUGGESTIONS

Management should make availability of sufficient tools and techniques and genuine spare parts. Management should try to reduce labor charge and service charges as much as possible. Management should maintain delivery timings and on road break down services as they promised to their customers. Majority of the customers wants to kept open service station on Sundays, so management should try to provide services on Sundays also

CONCLUSION

This project was conducted on marketing strategies of Hyundai motor India ltd. & Tata Motors with focus on Hyundai Santro & Tata Nano. In this project questionnaire was prepared to know the consumer satisfaction level of respondents and the conclusion is based on the same. Few years ago, on September 23rd 1998 the company launched Hyundai santro in the Indian market. The company was new in the market but still the company sold around 17000 units in first five months. The company has already created their market share till now and can be distincted from other brands.

From findings and analysis we can conclude that the consumers are very much satisfied from their Hyundai santro. For them Hyundai santro is not just a car but for them its a family car, that is the company has already created their emotional bindings with their consumers. As Hyundai santro is a middle segment car so its main focus is to give more fuel efficiency, and according to respondents, the company has given them what they want, that is most of the respondents are satisfied from fuel efficiency of the car. But the company also lies behind in some fields like few respondents were not happy when after a sales service is taken into account.

Success will largely be determined to the extent a company can differentiate itself in terms of intangibles that go with a car. Thus, success could well hinge on the best of bundle of services that a carmaker can provide.

BIBLIOGRAPHY

Marketing Management by Phillip Kotler Brand positioning by Subroto sengupta Positioning: The Battle for your mind by Al Ries & Jack Trout

Newspapers, Journals & Magazines

Business World The Economist Economic Times Autocar India

Websites

www.hyundai.co.in www.tata.com www.google.com www.autoworld.com

QUESTIONNAIRE

Q 1. DO YOU HAVE A CAR? Car Users Yes No Q 2. SPECIFY THE ONE? Car Category Hyundai Tata Nano Others No. of Respondents 50 30 20 60 No. of Respondents 40

Q 3. WHO MOTIVATE YOU TO BUY THE CAR? Factors Your Family Society Status Life Style No. of Respondents 10 20 35 35

Q 4. WHAT ARE THE FEATURES YOU LOOK FOR YOUR CARS? No. of Respondents Product Features Fuel Efficiency Style Comfort Price 20 20 20 40

Q 5. What are the price factors, which motivate you to buy the Cars? Factors Reliable Schemes Discount Any Other No. of Respondents 25 20 45 10

Q 6. How much you are affected by the promotional efforts of the company? Promotional Efforts High Moderate Low No Effect No. of Respondents 40 20 30 10