CB - Project Report Maruti
CB - Project Report Maruti
CB - Project Report Maruti
ON
“The study of consumer buying behavior towards Maruti Suzuki India Ltd.”
Submitted to:
Supriya Kale
Submitted By:-
Koushan Das
Divyabhan Singh
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Table of Contents
Executive Summary............................3
Objective of Study...............................5
Research...............................................6
Maruti Suzuki.......................................9
Research Methodology......................10
Questionnaire......................................34
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Executive Summary
Title
The Study of Consumer buying behavior towards small & medium car segment
with special reference to Maruti Suzuki India ltd.
Issue
Consumer behaviour is ‘the mental and emotional processes and the observable
behaviour of consumers during searching purchasing and post consumption of a
product and service. People buy different products from different brands to satisfy
their needs. Consumer purchases are influenced strongly by cultural, social,
personal and psychological characteristic. Although marketers cannot control such
factors, they must give attention to them. Boston Analytics, a customized
knowledge services company, has announced the release of its “Automotive
Industry in India” report as a part of the series of monthly reports that analyze
consumer observations and sentiments regarding a automotive sector. According to
this report consumer think about the following aspect while making decision of
purchase a car:
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Sales service, brand image/prestige, and resale value are secondary factors
of choice today and will remain so for the coming three to five years.
Environmental issues have yet to take root in India and do not show signs of
becoming a major factor for coming three to five years.
Car size
Affluence and aspiration are growing in parallel—The Indian consumer
prefers a mid-size car.
Our survey reveals that approximately one in two Indian consumers prefer a
roomy mid-size family car.
Color preference
The color pie in the Indian car market shows that White is the most
preferred color, closely followed by Black and Silver
Approximately 29% of respondents preferred White, followed by 27%
and 21% of respondents opting for Black and Silver/Grey respectively
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Thus the main issue in this project is to analyzing consumer buying pattern while
they make decision regarding purchase of car especially in small car segment.
PROBLEM
Thus problem of this project report is studying the consumer buying pattern
regarding small & medium car segment with special reference to Maruti Suzuki
India ltd and study about the consumer perception and attitude toward the same.
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RESEARCH is a scientific and systematic search for pertinent information on a
specific topic. It is also said to be the pursuit of truth with the help of study,
observation, comparison and experiment.
RESEARCH DESIGN
Research Design is the overall description of all the steps though which the
projects have preceded from the setting of objectives to the writing of the project
report. The success of the project depends on the soundness of the research design,
which includes problem definition, specific method of data collection and analysis
and time required for the project.
The research that is undertaken is “Descriptive & exploratory” in nature. The
research is to find out the customers’ preference and attitude towards decision
making of selecting appropriate small & medium car which suits to their need.
PRIMARY DATA
Data is collected primarily through personal contact, meeting, interview and
questionnaire with the concerned authority of the organization and investors’.
SECONDARY DATA
Data are collected through secondary modes such as various published data,
reports, related books and websites.
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SAMPLE SIZE
The procedure adopted to select the sample was simple random sampling. The
sample consists of 50 respondents’ and was restricted to people residing in Delhi.
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Introduction to the Automobile Industry
The automobile industry is one of the core industries in India economy, whose
prospect is reflective of the economic resilience of the economy. Indian automobile
industry has come a long way to from the era of the Ambassador car to Maruti 800
to latest M&M Xylo. An industry is highly competitive with a number of global
and Indian companies present today. It is growing at a pace of around 18% per
annum for the last five years and is projected to be the third largest auto industry
by 2030 and just behind to US & China, according to a report. The industry is
estimated to be a US$ 34 billion industry. With the liberalization of the economy,
India has become the playground of major global automobile majors.
Indian Automobile industry can be divided into three segments i.e. two wheeler,
three wheeler & four wheeler segment. Two wheeler segments enjoys 75% market
share of automobile industry, followed by passenger vehicles with the 16% share
of market. Three wheeler segments have merely 4% share in domestic market. The
domestic two-wheeler market is dominated by Indian as well as foreign players
such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc.
Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the
country. And India is considered as strategic market by Suzuki, Yamaha, etc.
The major players have not left any stone unturned to be global. Major of the
players have got into the merger activities with their foreign counterparts. Like
Maruti with Suzuki, Hero with Honda, Tata with Fiat and latest Mahindra with
Renault.
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In two-wheeler segment, motorcycles have the major share, Hero Honda, the
leading bike manufacturer has more than 50% share in two-wheeler segment,
followed by Bajaj Auto. In passenger car segment, Maruti Suzuki contributes the
52% market share, with complete monopoly over the small car segments. M&M
enjoy the 42% market share in Multi Utility Vehicle in domestic market.
The company has crossed the milestone of becoming the first Indian company in
March 1994, by manufacturing in totalit y one million vehicles. It is known for its
mass-production and selling of more than a million cars. Maruti Suzuki India Ltd.
is the India's largest automobile company which entered in the market with
affirmed aim to render high quality fuel – efficient and low - cost vehicles.
Sales figure in the year 1993 has reached up to 1,96,820. Maruti comes in a variety
of models in the 800 segment. Its cars operate on Japanese technology, pliable to
Indian conditions and Indian car users. By the year 1998-99, the company has
modernize the existing facilities and expand its capacity by 1,00,000 units.
Recently to ward off the growing competition, Maruti has completed Rs. 4 billion
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expansion project at the current site, which has raised the total production capacity
to over 3,20,000 vehicles per annum. With the coming of each and every year, the
total production of the company exceed by 4,00,000 vehicles.
In the small car segment it produces the Maruti 800 and the Zen. The big car
segment includes the Maruti Esteem and the Maruti 1000. Along with them, the
company also manufactures Maruti Omni. Other models includes Wagon R and the
Baleno.
Headquarter in Gurgaon, on 17 September 2007, Maruti Udyog was renamed to
Maruti Suzuki India Limited. Both in terms of volume of vehicles sold and revenue
earned, the company is India's leading automobile manufacturers and the market
leader in the car segment. Sales recorded in June 2008, is Rs. 4,753.58 crores
These cars are basically manufactured by - Maruti Udyog and Reva. While
companies like Volkswagon and Reva are yet to launch their models in the market.
RESEARCH METHODOLOGY
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Title of the study:- “The study of consumer buying behavior towards small &
medium car segment” The study showing the consumer buying behavior in small
& medium car segment. with special reference to Maruti Suzuki India ltd It
describe the attitude behind the purchasing of car by any middle income level
segment. This research is done at Delhi
Objective of the study:- The basic objective of the project during the research and
study will be focused on the following parameters:
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That is why it is also called a movement from known to unknown.
Research is the original contribution to the existing stock of knowledge. This
section includes the overall research design, the sampling procedure, the data
collection method, the field method, and analysis and procedure.
RESEARCH is a scientific and systematic search for pertinent
information on a specific topic. It is also said to be the pursuit of truth with the
help of study, observation, comparison and experiment. research methodology is a
way to systematically solve the research problem.
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This sample contains a mix type of customer (Servicemen, student and
businessmen) so as to remove any type be biased results. Research for the
Importance of the Brand image of the company’s which is kept in mind by
customers while buying any product. As two-wheeler is a durable thing, the
customer interacts with the company only for little time. Therefore it becomes very
difficult to get the actual feedback from the customer. That’s why I have designed
a Questionnaire for the customers. As customer is king of the market. Today every
product is made according to desire or need of the company. And customers have
varied taste. Only consumers’ satisfaction can predict the actual scenario of the
market.
Method of selecting sample :- Two methods of collecting data used for this
research are as follows: -
PRIMARY DATA – Data is collected primarily through personal
contact, meeting, interview and questionnaire with the concerned
authority of the organization and respondents’.
SECONDARY DATA – Data are collected through secondary modes
such as various published data, reports, related books and websites.
Scope of study:- The scope of the project during the research and study will be
focused on the following parameters:
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Impact of celebrity endorsement in buying behavior
Effect of family &friends in buying behavior (Focus group)
Limitation of study:-Every research study has its limitations likewise this research
has some limitation .These are
The sample consists of 50 customers and was restricted to people residing in
Delhi
Sample of the population (universe)might be not the representative of whole
Customer perception is not always static.They frequently change their
attitude
Selection of car is also depends on income level of respondents
This research is based on current economic condition which is not seem to
be good
Theoretical framework
Consumer behavior:- It is the study of when, why, how, where and what people do
or do not buy products. It blends elements from psychology, sociology, social,
anthropology and economics. It attempts to understand the buyer decision making
process, both individually and in groups. It studies characteristics of individual
consumers such as demographics and behavioral variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in general. Customer
behavior study is based on consumer buying behavior, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an
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influential asset for customer behavior analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on
consumer retention, customer relationship management, personalization,
customization and one-to-one marketing. Social functions can be categorized into
social choice and welfare functions. Each method for vote counting is assumed as a
social function but if Arrow’s possibility theorem is used for a social function,
social welfare function is achieved. Some specifications of the social functions are
decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and
weak and strong Paretooptimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic
of a social function is identification of the interactive effect of alternatives and
creating a logical relation with the ranks. Marketing provides services in order to
satisfy customers. With that in mind, the productive system is considered from its
beginning at the production level, to the end of the cycle, the consumer
Belch and Belch define consumer behavior as 'the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating, and
disposing of products and services so as to satisfy their needs and desires'
The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
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The behavior of consumers while shopping or making other marketing
decisions;
Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
How consumer motivation and decision strategies differ between products
that differ in their level of importance or interest that they entail for the
consumer; and
How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
One "official" definition of consumer behavior is "The study of individuals,
groups, or organizations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy needs and the impacts
that these processes have on the consumer and society."
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may go back and forth between the stages. For example, a person may resume
alternative identification during while evaluating already known alternatives.
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Information search and decision making. Consumers engage in both internal and
external information search.
Internal search involves the consumer identifying alternatives from his or her
memory. For certain low involvement products, it is very important that marketing
programs achieve “top of mind” awareness. For example, few people will search
the Yellow Pages for fast food restaurants; thus, the consumer must be able to
retrieve one’s restaurant from memory before it will be considered. For high
involvement products, consumers are more likely to use an external search. Before
buying a car, for example, the consumer may ask friends’ opinions, read reviews in
Consumer Reports, consult several web sites, and visit several dealerships. Thus,
firms that make products that are selected predominantly through external search
must invest in having information available to the consumer in need—e.g., through
brochures, web sites, or news coverage.
A compensatory decision involves the consumer “trading off” good and bad
attributes of a product. For example, a car may have a low price and good gas
mileage but slow acceleration. If the price is sufficiently inexpensive and gas
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efficient, the consumer may then select it over a car with better acceleration that
costs more and uses more gas. Occasionally, a decision will involve a non-
compensatory strategy. For example, a parent may reject all soft drinks that
contain artificial sweeteners. Here, other good features such as taste and low
calories cannot overcome this one “non-negotiable” attribute.
Variety seeking (where consumers seek to try new brands not because these
brands are expected to be “better” in any way, but rather because the
consumer wants a “change of pace,” and
“Impulse” purchases—unplanned buys. This represents a somewhat “fuzzy”
group. For example, a shopper may plan to buy vegetables but only decide
in the store to actually buy broccoli and corn. Alternatively, a person may
buy an item which is currently on sale, or one that he or she remembers that
is needed only once inside the store.
Whether to buy;
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Which product to buy (pick-up or passenger car?);
Which brand to buy;
Where to buy it; and
When to buy.
Note, however, that the role of the decision maker is separate from that of the
purchaser. From the point of view of the marketer, this introduces some problems
since the purchaser can be targeted by point-of-purchase (POP) marketing efforts
that cannot be aimed at the decision maker. Also note that the distinction between
the purchaser and decision maker may be somewhat blurred:
The decision maker may specify what kind of product to buy, but not which
brand;
The purchaser may have to make a substitution if the desired brand is not in
stock;
The purchaser may disregard instructions (by error or deliberately).
It should be noted that family decisions are often subject to a great deal of conflict.
The reality is that few families are wealthy enough to avoid a strong tension
between demands on the family’s resources. Conflicting pressures are especially
likely in families with children and/or when only one spouse works outside the
home. Note that many decisions inherently come down to values, and that there is
frequently no "objective" way to arbitrate differences. One spouse may believe that
it is important to save for the children’s future; the other may value spending now
(on private schools and computer equipment) to help prepare the children for the
future. Who is right? There is no clear answer here. The situation becomes even
more complex when more parties—such as children or other relatives—are
involved.
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Some family members may resort to various strategies to get their way. One is
bargaining—one member will give up something in return for someone else. For
example, the wife says that her husband can take an expensive course in gourmet
cooking if she can buy a new pickup truck. Alternatively, a child may promise to
walk it every day if he or she can have a hippopotamus. Another strategy is
reasoning—trying to get the other person(s) to accept one’s view through logical
argumentation. Note that even when this is done with a sincere intent, its potential
is limited by legitimate differences in values illustrated above. Also note that
individuals may simply try to "wear down" the other party by endless talking in the
guise of reasoning (this is a case of negative reinforcement as we will see
subsequently). Various manipulative strategies may also be used. One is
impression management, where one tries to make one’s side look good (e.g., argue
that a new TV will help the children see educational TV when it is really mostly
wanted to see sports programming, or argue that all "decent families make a
contribution to the church"). Authority involves asserting one’s "right" to make a
decision (as the "man of the house," the mother of the children, or the one who
makes the most money). Emotion involves making an emotional display to get
one’s way (e.g., a man cries if his wife will not let him buy a new rap album).
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ANALYSIS & INTERPRETATION
Interpretation
Objective of the study : Consumer buying behavior towards small & medium car
segment
For this research project ,I choose the questionnaire as research tool and take 50
participants who either willing to buy a car or having a car in small and middle
segment. So the findings are as follows
16%
Yes No
84%
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Q.2 Which car do you use?
No of respondants
2% 7%
19%
43% Maruti
Honda
GM
Tata
Hyundai
29%
Yes
No
Yes
79%
No
21%
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Interpretation:-
Approx 79% participants are satisfied with their current car i.e. their
expectation are fulfilled by the car and rest are unsatisfied with their car
performance
Some factor like mileage ,performance and easy servicing fulfill their
expectation
No
26%
Yes
No
Yes
74%
Interpretation:-
Every person wants to buy a car for himself or for his family. My research is focus
on middle income prospects and thus
74% respondents are planning to buy a new car
26% respondents are not willing to buy new car in near future
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Q. 5 Which brand would you prefer?
TATA GM
17% 10% Honda
3% Maruti
Hyundai
Hyundai TATA
25% GM
Maruti Honda
45%
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Q. 6 Why would you prefer the above mentioned car?
26% 24%
Mileage
Looks and style
Comfort
Service and spares
10% Other
2%
38%
Interpretation:-The reason for the preference, among 50 respondents
38% preferred mileage follow by looks and style as 26%
Comfort is taking third place by 24% followed by service and spares
54% 36%Advance
technology
Fashion & trends
other
2% 8%
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Interpretation:-Generally middle class respondents never echange their car so
frequently so far. They will change their car after more then two year or above
but the reason behind the changing the car are as follows
Almost 54% participants said tat they fed up with their car
Near 36% respondents wants to change their car due to advance technology
Approx 8% change their car due to fashion & trend
\
Q.9 What does affects your buying behavior generally while selecting any car
in small & medium segment?
Familly &friends
58% Brand
26%
Advertisment
2%
10% Technical
4% advancement
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Facts & finding
Findings :-
Existing customer are satisfied with their present car performance like
mileage ,servicing etc
Middle class segment like to buy any brand due to mileage followed by
looks & style
They change their cars after two years or more, due to fed up with car and
for new advance technology
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CONLUSION & RECOMMENDATION
From the analysis of the responses received from the customers in Delhi,
overall findings show that Maruti Suzuki is the most prefered brand
among the participants.
Maruti Suzuki and Hyundai,Tata Motors are the biggest competitor in the
small & madium car market..
Most middle class person prefer Maruti Suzuki in this segment and
usually they use car for their transport.
Servicemen still would like to go for small & medium car but with
mileage with the first considerable thing followed by looks and style and
power.
Study shows that middle class segment highly influenced by family &
friends while purchasing the car. So companies should advertise their
product targeted to families
Gradually Hyundai & TATA captured the market of Maruti due to their
new launching in small cars like TATA nanoetc and Maruti should come
up with more cheaper cars with the regular Maruti Advantages like
mileage.
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Questionnaire
Objective: Consumer buying behavior towards small & medium car segment
Q. 1 Do you use cars?
o Yes
o No
o Maruti
o Honda
o GM
o TATA
o Hyundai
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Q. 6 Why would you prefer the above mentioned car?
o Mileage
o Looks and style
o Comfort
o Service and spares
o Other
If other, then please specify…………………………..
Reasons
o Family or Friends
o Advertisement
o Brand
o Style & Features
o Technical Advancement
o Other Issue
If other, then please specify…………………………..
Personal Information:
Name :
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Occupation :
Date : Signature
Place :
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