A PROJECT REPORT

ON
A STUDY OF MARKETING STRATEGIES OF
MARUTI AND HYUNDAI

In partial fulfillment for the

Bachelor’s Degree in Business Administration
2013-2014

Under the guidance of- Submitted By-

Ms. Priyanka Pandey Shubham Mishra
BBA VIth semester
Roll No.- 11034101045

GYAN COLLEGE OF
MANAGEMENT, LUCKNOW
 CERTIFICATE

This is to certify that the project entitled “A STUDY OF

MARKETING STRATEGIES OF MARUTI SUZUKI AND
HYUNDAI” submitted to the Gyan College of Management by
Shubham Mishra for the award of MASTER IN BUSINESS
ADMINISTRATION is a record of bonafide original research work
carried out by him under my supervision and guidance. The
project has reached the standard of fulfilling the partial requirements
of the regulation to the degree.
The project report has not been submitted to any other
university/institution for the award of any degree or diploma.

DATE: Ms. Priyanka Pandey

PLACE:

2
 DECLARATION

I, Shubham Mishra, a 6th semester student of Gyan College of

Management hereby declare that I have duly completed my project
on
“A STUDY OF MARKETING STRATEGIES OF MARUTI SUZUKI
AND HYUNDAI” for the academic year 2013-2014.

The information submitted is true and original to the best of my

knowledge.

Date - Shubham Mishra

B.B.A. 6th semester

3
 ACKNOWLEDGEMENT

I hereby take the opportunity to express my profound

sense of reverence and gratitude to all of them who have
helped me in the successful completion of this summer training.
I take immense pleasure in thanking Ms. Priyanka Pandey, HOD,
for having permitted me to carry out this project work as well as for
her guidance and useful suggestions, which helped me in completing
the project work, in time.

I thank her for mentoring and encouraging me throughout the project

and also for her assistance and numerous suggestions during the
preparatory phase.

I would also like to thank all the Maruti and Hyundai dealers whom
I met during the survey, for giving all the required information.
Finally, yet importantly, I would like to express my heartfelt
gratitude to my beloved parents for their blessings and the
financial support, my classmates for their help and wishes
for the successful completion of this project. . Moreover,
the essence of knowledge, care and support of all
who have enabled me to gain this memorable practical
experience will keep me learning all through my life.

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 TABLE OF CONTENTS

Sr no. Particulars Page no.

1 Declaration 3

2 Acknowledgement 4

3 Introduction 8

4 Automobile Company Profiles 12

5 Theoretical View 17

6 Practical View 38

7 Suggestions and Recommendations 59

8 Conclusion 61

9 Annexure 62

10 Bibliography 72
CHAPTERWISE PRESENTATIONS

5
Chapter 1 – Introduction
1.1 About Marketing Strategy
1.2 Title of the study
1.3 Objectives of the study
1.4 Scope of the study

Chapter 2 – Company Profiles

2.1 Maruti Suzuki Limited Profile
2.2 Hyundai Motors India Limited Profile

Chapter 3 – Theoretical View

3.1 History of Indian Automobile Industry
3.2 Common Marketing Strategies of Car Companies
3.3 Market Share of Automobile Companies
3.4 Marketing Strategies of Maruti Suzuki
3.5 Marketing Strategies of Hyundai
3.6 Comparative Study of Maruti Suzuki and Hyundai

Chapter 4 – Practical view

4.1 Charts and Interpretations
4.2 Observations

Chapter 5 – Suggestions and Recommendations; Conclusion.

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 LIST OF CHARTS/GRAPH

Chart no. Name Page no.

1 Market share of Automobile Companies 30

2 Views of dealers on Promotion through 45

sponsoring reality shows

3 Increase in sales during Festive Season 46

4 Users of Maruti/ Hyundai cars 48
5 Most Preferred car 49
6 Reasons for Using Maruti & Hyundai Car 50
7 Customers Rating to cars performance 51
8 Expectations Met 52
9 Criteria’s in Buyers Mind 53
10 Reasonable Pricing 54
11 Preference of Customers 55
12 Strategies through which Customers are 56

Attracted
13 Dealers’ Service 57

INTRODUCTION

7
A Study of Marketing Strategies of Two
Automobile Companies:

A marketing strategy is a process that allows an organization to

concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage. Its a
written plan which combines product development, promotion,
distribution, and pricing approach, identifies the firm's marketing
goals, and explains how they will be achieved within a stated
timeframe. Marketing strategy determines the choice of target
market segment, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component of
firm strategy, defining how the organization will successfully engage
customers, prospects, and competitors in the market arena.
Marketing strategies serve as the fundamental underpinning of
marketing plans designed to fill market needs and reach marketing
objectives. Marketing strategies are dynamic and interactive. It may
differ depending on the unique situation of the individual business.
On the Canvas of Indian Economy, Auto Industry occupies a
prominent place. Automobile sector is one of the cores of Indian
Industry. Continuous economic liberalization over the years by the
Government of India has resulted in making India as one of the
prime business destination for many global automotive players.
One of the largest industries in India, automotive
industry has been witnessing impressive growth during the last two
decades. Indian automobile industry has a mix of large domestic
private players such as Tata, Mahindra, Bajaj, Ashok Leyland and

8
major international players including GM, Ford, Toyota, Honda,
Hyundai, etc. To remain in this competitive market one has to come
up different ides and strategies.

Various Marketing Strategies enables a firm to expand

business activities for market reputation, to satisfy human wants, to
lead to specialisation and efficient performance of production
function climaxing in econimic stability.

After liberalization automobile Industry is growing at very

high rate and many new companies have also entered into market
offering variety of cars in all segments for everyone. So it is
important to know which company is providing us good quality cars
at fair prices and providing better after sales services. Marketing
strategies tell us about how these companies are trying to reach
customers. The most obvious objective marketers have for
promotional activities is to convince customers to make a decision
that benefits the marketer (of course the marketer believes the
decision will also benefit the customer). For most for-profit
marketers this means getting customers to buy an organization’s
product and, in most cases, to remain a loyal long-term customer.

However, marketers must understand that getting customers to

commit to a decision, such as a purchase decision, is only achievable
when a customer is ready to make the decision.

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Title of Study
“A Study of Marketing Strategies of Maruti Suzuki and
Hyundai.”

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

Scope of Study
- Company will come to know what attracts Customers.
- Company as well as Dealers of Maruti Suzuki and Hyundai will
come to know that which are the criterias customers look for before
buying car.
- Company and Dealers will also come to know the future changes
which will be required to satisfy the customers’ needs and wants.

Methodology of Data Collection

10
Primary Data:-
Visiting various Dealers and asking them about their promotional
strategies and requirement of customers.
Obtaining feedback from the customers of Maruti and Hyundai
about their preference, criterias while buying car and their
experience with dealers and their expectations from dealers with the
help of a structured questionnaire containing both open-ended as
well as closed-ended questions.

Secondary Data:-
Magazines, Internet, friends and seniors.

Extent of study- Lucknow

HYUNDAI MOTORS PROFILE

11
12
13
MARUTI PROFILE

14
 INDIAN AUTOMOBILE INDUSTRY

PRE- LIBERALIZATION PERIOD

Since Independence the Automobile Industry was closely monitored
and controlled by the government till 1981. Limited choices were
available to the car buyers due to the limited manufacturers and tight
supply. Hindustan Motors (HM) and Premier Automobile (PAL) that
were set up in 1940's dominated the vehicle market and industry. In
the 1950s, the arrival of Tata Motors, Bajaj Auto, and Mahindra &
Mahindra led to steadily increasing vehicle production in India,
while the 1960s witnessed the establishment of the two- and three-
wheeler industry in India.

But between 1970 to the economic liberalization of 1991, the

automobile industry continued to grow at a slow pace due to the
many government restrictions. However, the automotive industry
witnessed tremendous growth after the entry of Maruti Udyog in the
1980s.
In 1981 the government decided to review their car industry policy
and found that the segment was neglected and there was a big
market available for cars. The existing cars available in the market
were costly and technically less sound when compared to the
international standard. Then the government initiated dialogues with
Suzuki Motors, a Japanese car manufacturing company, finalized a
joint venture, and formed a company named Maruti Udyog Limited

15
(MUL). The initial venture was between Government of India with a
share of 74% and Suzuki Motor with a share of 26%.

That was a revolutionary step taken for the car industry in India. In
1983 MUL launched its first car in India (Maruti 800) with a price
tag of Rs.40,000/-.
This development was a big shock to the existing car manufacturers
and they also rushed to improve and increase their product line.
After the lifting of licensing in 1993 by government, 17 new
ventures came up, of which 16 were for the manufacture of cars.
Today, almost all of the major global players are present in India.
The automotive industry is today a key sector of the Indian economy
and a major foreign exchange earner for the country.

GOVERNMENT’S ROLE-
1981 was the year when government took a revolutionary initiative
to review and reform its policy related to car industry. Now getting
permission to produce cars in India is easier and new entrants are
come almost every year. Government has also imposed heavy
import duties on imported vehicles to safeguard the interests of car
manufacturers present in India.

POST- LIBERALIZATION PERIOD

Following the economic reforms of 1991, the automobile section
underwent delicensing and opened up for 100 percent Foreign Direct
Investment. A surge in economic growth rate and purchasing power

16
led to growth in the Indian automobile industry, which grew at a rate
of 17% on an average since the economic reforms of 1991.

India's automotive components industry is being urged by the

government to partner with overseas firms with the aim of making
India a platform for outsourcing as well as a global R&D hub. As the
Indian vehicle production industry has grown, so has the domestic
supplier industry. But the global auto industry's search for lower cost
and more international outsourcing has led to a sharp growth in
component output and exports in recent years.

The positive demographic factors, stable macro-economic

environment and post-reform policies of the government, low
manufacturing costs, availability of skilled labour has attracted
almost all major global auto players making their way into India like
GM, Ford, Daewoo, Honda and Toyota etc. The intense competition
has compelled the manufacturers to launch the latest global offering
in India as early as possible. It has also enabled to keep the prices of
the vehicles under check. The consumers, in turn, have benefited
from wide choice of models, technologically advanced cars and
better service from the car manufacturers.

17
 Major Manufacturers in Automobile
Industry and their Cars

Maruti Udyog Ltd.

Cars:-
Celerio, Alto 800, Alto K10, Wagon R, Swift, Ritz, Stingray, Dzire,
SX4, Ertiga, Omni, Eeco, Gypsy, Grand Vitara

Tata Motors.
Cars:-
Indica eV2, Indica Vista, Indigo eCS, Manza, Indigo XL, Nano,
Safari storme, Sumo Victa.

Hyundai Motor India Ltd.

Cars:-
EON, Santro Xing, i10, Grand i10, i20, Xcent, i20, Fluidic Verna,
Neo Elantra, Sonata, Santa FE

Honda Siel.
Cars:-
Amaze, Brio, Jazz, City, Civic, Accord, CR-V

18
BMW
Cars:- 1 series, 3 Series, 5 Series, 6 Series, 7 Series, X Series and
Z4.

Other Automobile Companies are:-

Skoda
Toyota
Hindustan Motors
Ford
Mahindra and Mahindra
General Motors
Mercedes

19
 COMMON MARKETING
STRATEGIES OF AUTOMOBILE
COMPANIES
 Advertisement in News papers and Magazines:-

Companies advertise about the car in various local newspapers like

The Times of India, HT, etc. and they give detailed explanation
about the feature of the cars, keeping customer’s requirement in
mind. They also provide various dealers’ addresses and contact
numbers for reference. Company also tries to advertise through
various magazines like Auto Cars, Overdrive, etc.

20
  Grand Launch:-

Recently Maruti Suzuki launched Celerio and Hyundai launched

Grand i10 in compact car segment. Both were grandly launched and
created a buzz in market. After the launch media aggressively took
interest in providing the minute details about the cars to the customer
by demonstrating test drives, interior details, additional feature,
comparison with available cars etc.
Once the car is launched, an exodus of advertisements takes place in
every possible newspaper, car magazines, hoardings, mall displays,
etc.

21
  Exchange Offers

This is one of the most effective ways adopted by the companies and
very successful marketing strategy, which has helped companies to
increase their sales.
In this method, companies provide an option to buy a new car of the
customer’s choice in exchange of their old cars, but the price of the
old car is decided by the dealer after examining its condition. It helps
customers, as they don’t need to go anywhere else to sell their old
car. This also helps companies to increase their sale of new cars.

22
  Adding Star Value to the product-
Brand Ambassador

Companies choose brand ambassadors for their cars to reach wide

masses. For e.g. Shahrukh Khan promotes Hyundai, Abhishek
Bachan promoted Ford Fiesta, Virat Kohli promtes Toyota Etios
Liva, Saif Ali Khan and Rani Mukherjee promoted Chevrolet Aveo
and Amir Khan promoted Toyota Innova. Ambassadors give a
special identity to the products. Potential customers find a familiar
face in popular celebrities and hence tend to understand more what
the celebrity says than what an unfamiliar person would say. The
trust and love people have for their celebrities eventually gets
transferred towards the marketers’ product.

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  Sponsoring reality shows for better visibility:-

As we all know reality shows are making all time big in television
and entertainment industry. This is really a smart move by
automobile companies to gain visibility through reality shows. The
reality shows are aired all over the world and have a huge audience
watching it. So companies sponsor such shows and get noticed. For
example, Dance India Dance, a popular dance reality show was
sponsored by Maruti Suzuki and the winner of the show was
awarded a Maruti Suzuki Ertiga car. Similarly Nissan Motors
sponsored X-Factor India and gifted a Nissan Micra car to the
winner of the show.

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  Mall Displays:-

Various companies display their cars in Malls so as to get prime

attention. People go in Malls for shopping and hangout with their
friends and family. They conduct small contests and give gift
hampers as prize. Thus they try to attract crowd towards them.
Recently, Maruti Suzuki showcased their all new Celerio at the
famous FUN Republic Mall, Gomti Nagar, Lucknow.

25
  Companies enter market with help of Films:-

In terms of marketing strategies Chevrolet Aveo found a unique way

of advertising by way of a Yash Raj Film production, Tara Rum
Pum. The main motive behind this was to popularize and promote
the product in youth. Marketers select top film banners because they
assure high visibility and thus promote the product in high numbers.

 Companies Sponsor Go- Karting events

Go-karting events are really booming up among young crowd. And
that’s the reason we see craze for participating in go-karting events is
on high. People have started taking interest in the sport and huge
crowds turn up for such events. But for sure car companies would to

26
not like to miss chance of visibility they get in such competitions.
Few years before Maruti Suzuki sponsored Autocross rally. Similarly
Tata Engenieering has sponsored Narayan Kartikeyan as India’s
Entry in to the World Series motorcar racing.

 Personal selling
Personal Selling largely takes place at the Dealers’ End. The way
customer is attended depends mainly on the Dealer as he acts as an
interface between the company and the Consumer. The various cases
in which Personal Selling takes place is Individual Sales, Corporate
Sales, Sales Presentations, Fair and trade Shows. Mostly in case of
Individual Sales the Customer goes to the showroom and takes a
look at the product. There he is attended to by the Sales Personnel of
the Dealership. Sometimes the Senior Sales Executive has to make
Sales Presentation to Corporate Buyers. Personal Selling is also
practiced at Trade Fairs and Auto Shows wherein the Company
appointed Sales Personnel attend prospective customers and also
book their orders.

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 Market Share of Automobile Companies

Figure 1

Above market share graph shows us that in the automobile industry

(cars and utility vehicles), Maruti Suzuki enjoys highest market
share of 36%. Then follows Hyundai with 21% market share. TATA,
Toyota, M&M and other companies follow suit.
(Figures for FY 2012-2013)

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 MARKETING STRATEGIES USED
BY MARUTI INDIA

 Advertisements
Good promotional strategy is adopted by Maruti Suzuki to transform
its thoughts to the people about its products by marketing through
advertisement in television, radio, newspaper, etc.
Through radios they try to promote their product by organizing quiz
contests and the person who wins are offered special discounts, gift
vouchers, coupons, etc.
Through television they promote their vehicle by showing the utility
value, its comfort level. These promotional strategies aim to
influence the target market emotionally by focusing on factors like
family, lifestyle, leisure, etc.

Some of the strategies used for cars were:-

Celerio: “Life takes a leap”
Projected as India’s first Auto Gear Shift car.
Ertiga: “A Feeling called LUV”
Projected as a Life utility Vehicle (LUV), Ergonomically designed
for 5+2 seating.
Baleno: “Missed the flight? Catch Baleno”
Projected as the most comfortable car even in long drives.

29
Esteem: “My Daddy’s Big Car”
Projected as the affordable mid size car.
Alto: “Let’s Go”
The most fuel efficient and affordable car in its segment.

 After Sales Service:-

“Kya yahan Maruti Service Station hai”
Availability of service stations even in the remotest place in the
country is one the biggest advantages of MUL. Customers don’t
have to fear if there is some technical fault in the car while they are
traveling or away from their home town.

 Display
When we visited any of the Maruti Dealers showroom, we noticed
one very similar trait, that was the display. They display only 2-3
cars in the showroom. Well this is the strategy to make people
concentrate on only few choices or otherwise they might get
distracted and get confused. Here Maruti wins one customer.

 Tie up with many banks

To promote its bottom line growth, Maruti launched Maruti Finance
in Jan 02.
Prior to the start of this service Maruti had started two joint ventures
– Citicorp Maruti and Maruti Countrywide with Citi Group and GE
Countrywide respectively to assist its client in securing loans.

30
Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI
Ltd, Kotak Mahindra Bank, Standard Chartered Bank etc.

SBI Maruti Car Loans:

The country’s largest bank and the largest car maker have joined
hands to make affordable car finance available to more and more
people across the country. The mega alliance makes car loans
available at lower interest rates to a wider section of people, with
transparent terms and conditions.

The unbeatable advantages of SBI Maruti car loans:-

-Two market leaders in their respective industries with trusted brand
names.
-Low interest rates
-No processing fees or hidden costs to ensure transparency.
-Car loans available for diverse categories of customers including
govt. employees and agriculturist.

 Exchange offers
Maruti has also placed its step towards progress by marketing
through exchange offers. It makes possible for the customers to get
their old car replaced for a new one with barely some amount. This
is one of the greatest ways to attract more and more customers and
also helps to enhance the sales.

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 MARKETING STRATEGIES OF
HYUNDAI MOTORS INDIA

 Advertisements
Hyundai had contracted Bollywood star Sharukh Khan as Brand
Ambassador for promoting their cars for a long period of time.
Before the lauch of Santro in India, Hyundai tied up with advertising
agency Saatchi and Saatchi. Bollywood star Shah Rukh Khan was
roped in to be the brand ambassador. A three-pronged strategy was
developed to attract the consumers -
 Educate Indian consumers about Hyundai.
 Create hype and expectations about Santro.
 Explain the virtues of santro.
Initially, Shah Rukh was not impressed and was reluctant to
advertise for Hyundai, but later on, when the Hyundai officials
explained and elaborated to him as to why Hyundai Santro was apt
for the Indian customer, Shah Rukh was convinced. This high profile
campaign backed by some very innovative media buying, which
went for maximum coverage with the minimum budget, broke all
grounds in terms of creating consumer expectations and hype in the
market.

32
To promote their product they organized quiz contests on radio and
the person who wins was offered special discounts, gift vouchers,
coupons, etc.
They also advertise in Newspapers. In this companies advertise
about the car in various newspapers and they give detail explanation
about the features of the cars, keeping customer’s requirement. They
also provide various dealers addresses and contact numbers for
reference.

 Free Checkup

33
Hyundai arranges free checkups from time to time in which they
check for any problem and advice to visit the nearest service center
for servicing. This helps in maintaining good relationship with
customers and also helps to build and maintain a good image in the
market.

 Exchange offers
Since Hyundai deals in second hand cars also (Hyundai AdVantage),
they offer exchange offers to customers. And by paying adjusted
amount customer can get brand new car in exchange of old ones.
Exchange offer prove to be very affordable for customers who don’t
have adequate finance to buy a new car but surely want to change
their old car. By paying the balance amount, customers cam easily
exchange their old car with a new one.

 Cold callings
Cold calling is the sales process of approaching prospective
customers or clients—typically via telephone, by email or through
making a connection on a social network—who were not expecting
such an interaction. The word "cold" is used because the person
receiving the call is not expecting a call or has not specifically asked
to be contacted by a sales person. A cold call is usually the start of a
sales process generally known as telemarketing.

34
In this type of strategy old customers are given a relationship call
just to know some other references. This gives a boost to sales and
customers also feel a sense of involvement. Hyundai gets maximum
sale through such type of cold callings only.

 Events at Corporate Offices and Banks

Hyundai tries to attract customers by conducting camps, events at
corporate offices and bank as most of the customers are of middle-
age group and corporate offices are good source for company to
attract such customers.

 Display
Hyundai keeps attractive display so that maximum number of people
notice their cars. And they even keep their own accessories related to
cars at special accessories counter. For attractive display they
decorate their showroom as well as all the cars which are displayed.

35
 INTERPRETATIONS TO
QUESTIONAIRRE

Dealers’ Survey

Relation of Marketing Strategies and sales of product

Maruti’s Survey:-
From the survey of 5 dealers it was found that every dealer
positively replied that marketing strategies had helped them to
increase the sales of their product.
Hyundai’s Survey:-
Even 5 Hyundai dealers positively replied that marketing
strategies helped them to increase the sales of their product.

Benefits of Marketing Strategy

Maruti’s Survey:-Dealers replied that from the various marketing
strategies, enquiries for the new launches increases and thus
indirectly sales. It also increases references and contacts.
Hyundai’s Survey:-
Dealers replied that strategies created awareness amongst customers
and increases walk-ins.

36
Promotional Strategies used
Maruti’s Survey:-Maruti dealers conduct various events at malls,
at workshops and at near banks and government offices. They also
give advertisements in local newspapers and distribute pamplets.
Hyundai’s Survey:-
Dealers conduct cold callings i.e. calling old customers. They
give advertisement in papers, conduct roadshows and conduct
service checkup camps. They also provide various exchange offers.

Attraction of Customers
Maruti’s Survey:-
Dealers replied that most of the customers are attracted
through media advertisements and mouth publicity and also through
old references.
Hyundai’s Survey: -
Dealers replied that most of the customers are attracted
through references and walk-ins and mouth publicity also helps in
attracting customers to new product.

Promotion through Media

Maruti’s Survey:-
Most of the dealers felt that media promotions are more
attractive than other alternatives because of its mass reach.

37
Hyundai’s Survey:-
Hyundai dealers also had more positive reply for media
publicity rather than other promotion alternatives.

Effect of Grand Launch of a Car

Maruti’s Survey:-
Dealers replied that grand launch of the car makes selling easy
only in initial stage but afterwards it depends on the product.
Hyundai’s Survey:-
Dealers think that it helps to attract customer’s attention but
afterwards it depends on many other factors like quality,
performance, service, etc

Most demanded Car model

Maruti’s Survey:-
Most of the dealers replied that Alto, Wagon R and Swift are
the most demanded cars amongst all Maruti cars, while next best
alternative is DZire.

Hyundai’s Survey:-
Dealers found i10, i20 and Santro as the most demanded cars
amongst others whereas Fluidic Verna is more demanded by the elite
class.

38
Best Mileage Car
Maruti’s Survey:-
Dealers replied that Ritz and Alto gives best mileage.
Hyundai’s Survey:-
Dealers replied that i10 and Santro cars’ mileage is best
amongst others.

Customer Preference
Maruti’s Survey:-
Dealers replied that customers prefer petrol version more.
Hyundai’s Survey:-
Here also customer demands include more petrol version cars.

Criteria in the Buyers Mind

Maruti’s Survey:-
Dealers replied that most of the customers look out for every criteria
i.e. quality, comfort, performance, mileage and price.
Hyundai’s Survey: -
In Hyundai also customers prefer all the above criterias but
look for price and comfort more.

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Biggest Competitor
Maruti’s Survey:-
Maruti dealers replied Hyundai as the biggest competitor.
Hyundai’s Survey:-
Hyundai dealers found Maruti as their biggest competitor.

Complete Package Car

Maruti’s Survey:-
Dealers rate Swift as their best car for its complete package.
Hyundai’s Survey:-
Hyundai rated Grand i10 as their best car for its complete
package.

Way of Purchase
Maruti’s Survey:-
According to dealers, Maruti cars are sold mostly on EMI
basis. Out of 10 dealers, 7 dealers replied that 50-75% of their total
sales are on installment basis.
Hyundai’s Survey:-
As per Hyundai dealers cars are sold on both EMI as well as
upfront payment and around 50% of Hyundai cars are sold on EMI
basis.

40
Bank tie-ups
Maruti’s Survey:-
For EMI basis Maruti dealers are tied up with banks like
ICICI, HDFC, SBI, and many others banks but they don’t offer any
extra discount to customers who purchase cars on cash basis
Hyundai’s Survey:-
Hyundai dealers are also tied up with ICICI, HDFC, SBI, and many
other major banks for EMI purchase and also don’t offer any
discount to customers who purchase on cash payment.

Effect of Tata Nano’s entry

Maruti’s Survey:-
Dealers don’t think that Tata Nano’s entry in market will effect
sale of their cars because they think that customers not only look for
car price while buying car but look out for many other factors also.
Hyundai’s Survey:-
According to dealers customer look for Quality, Standard and
performance which is lacking in Tata Nano.

Recession effect
Maruti’s Survey:-
Because of recession cars sales were reduced by 10-20%. But now
people have started buying cars.
Hyundai’s Survey:-

41
 Most of the dealers replied that recession didn’t affect them at
all, but few dealers replied that there was marginal decline in Cars
sales.

Spending huge amount on various marketing strategies during

recession
Maruti’s Survey:-
Dealers think that if they don’t spend on various strategies
then customer will be unaware of new launches and sales will get
affected.
Hyundai’s Survey:-
Hyundai dealers think that this is right time to attract maximum
customers as rate of interest on car loans have been reduced

Promotion through sponsoring Reality Shows

Maruti’s Survey:-
Dealers think that such type of marketing strategies helps to
attract customers’ attention towards their cars and thus it tries to
create awareness amongst customers
Hyundai’s Survey:-
Dealers think that because of such strategies many customers
gets aware about their products and generate enquiries.

42
 Views of dealers on Promotion through sponsoring reality
show

7
6
No of dealers

5
4 7
3
2 3
1
0
yes no

Figure 2

It was found out that most of the dealers i.e. 7 dealers replied
positively that sponsoring reality shows and giving car to winners
helps in promoting car whereas 3 dealers were not agreed to this.

Reason for loyalty

Maruti’s Survey:-
Dealers think that customers are loyal to Maruti because of its
Service, Quality and Range of cars and Brand Name
Hyundai’s Survey:-
According to them, offerings of a variety of cars in all
segments and its product quality, customers are loyal to Hyundai.

43
Belief in Customer Satisfaction and After Sales Service
Both Maruti and Hyundai dealers believe 100% in Customer
satisfaction and after sales service because they think that if
customer is fully satisfied with its service then only he will return to
same company for purchase otherwise he will shift to another car
companies product. And better sales service will create good image
in mind of customers and also help in positive Word of Mouth
Communication.

Conduct Marketing Research activity

Some dealers replied that they conduct research activity for
knowing which marketing strategy had attracted maximum number
of customers, so that they can try to promote more through that
strategy. Otherwise they don’t conduct research activity. It is
normally conducted at companies level and not at dealers level.

Festive season boost

Increase in sales during Festive Season

4
3.5
3
No. of Dealers

2.5
4
2
3
1.5
2
1
1
0.5
0
0-20% 20-40% 40-60% 60-80%
Increase in Sales %

Figure 3

44
Maruti’s Survey:-
According to dealers car sales increases by 40-50% during festive
season like Diwali.
Hyundai’s Survey:-
Hyundai dealers also replied that there is almost increase of
30-40% of cars during festive season.

Company support to Dealers

Both companies’ dealers replied that company makes selling
of cars easy by promoting through various ways. Company also
motivates employees to sell more cars by providing incentives, and
special schemes are introduced for dealers. Company gives them
training so that they can easily communicate with customers and can
solve their doubts.

45
Customers’ survey

Users
Below graph shows us that 63.75% of people interviewed, i.e., 51
out of 80 users are Maruti Suzuki customers where as remaining 29
users i.e 36.25% are Hyundai customers.

Users

70

63.75

60

50
Percentageusers

40
36.25

30

20

10

0
Maruti Hyundai
Company

Figure 4

46
Most preferred cars

After the survey it was found that Santro from Hyundai and Swift
from Maruti Suzuki from the various range available are the most
preferred cars amongst the customers. Also Maruti Zen Estilo is
more in demand.

Figure 5

47
Loyalty towards brand

It is found that customers stay loyal to Maruti and Hyundai rather

than other brand. They have faith in these brands due to their
goodwill, good service, complete package and reasonable prices

Reasons for Using Maruti & Hyundai Car

40 36.25
35
30 26.25
Percentage

25
20
13.75 15
15
8.75
10
5
0
Brand Quality Price Range of Complete
Cars Package
Criterias

Figure 6

48
Rating to car performance

It was found that most of the customers were satisfied with the
performance of the cars whereas very few found it as not up to their
mark.

Customer's Rating to Car Performance

45
40
35
30
Percentage

25 43.75
20
31.25
15
10 17.5

5 7.5

0
Excellent Very Good Good Poor

Figure 7

49
Customer’s expectation

Below graph clearly states that 86 percent customer’s expectations

were met through these brands where as few were unsatisfied.

Expectations Met

90
80
70
Pe rce ntage

60
50 86
40
30
20
14
10
0
Yes No

Figure 8

50
Criteria’s in buyer’s mind while purchasing

Criterias in Buyers Mind

30

25
Percentage

20

15 28.75 27.5

10 17.5
15
11.25
5

0
Looks Perform ance Comfort Milage All of Them
Criterias

Figure 9

It was found that while purchasing the car customers look for the
complete car of their choice which gives them good performance,
looks, mileage and also it should be reasonably priced.

51
Pricing

Most customers found that prices of these cars are affordable for
their pockets whereas few customers found that price is little higher.

Reasonable Pricing

80

70

60
Percentage

50
77.5
40

30

20
22.5
10

0
Yes No

Figure 10

52
Preference of customers

Maximum customers still prefer to buy petrol version cars rather

than diesel or LPG version, even though LPG and diesel versions are
economical in usage.

Preference Of Customers

80
Percentage

60

40 62.5

20 26.25
11.25
0
Petrol Diesel L.P.G

Figure 11

53
Strategies used to attract customers

Most of the customers prefer to buy after seeing some one else’s
experience. Thus word of mouth publicity acts as the marketing
strategy for the companies whereas others are attracted to T.V ads,
brand ambassadors, etc .

Strategies through which Customers Attracted

50
45
40
35
Percentage

30
25 47.5
20
15 21.25
10 13.75
11.25
5 6.25
0
T.V Ads Launch Of New spapers Word of Others
Car Mouth
Publicity

Figure 12

54
Dealer’s Service
About 37.5 percent customers were satisfied with service provided
by the dealers. Some were not satisfied as they faced problems like
delay in delivering the cars, etc.

Dealers Service

40

35

30

25
Percentage

20 37.5
31.25
15 23.75
10

5 7.5

0
Exceelent Very Good Good Poor

Figure 13

Expectations from dealers

When customers were asked about their expectations from dealers,

they replied that they need delivery on time, good service, giving
detailed information about the car before purchasing, good after
sales service, etc.

55
 FINDINGS

 It was found that dealers agree that Marketing Strategies helps

to increase sale of product.

 Most of the customers are attracted through media publicity

and mouth publicity.

 Swift and Alto from Maruti and i10, i20, and Santro from
Hyundai are most demanded cars by customers.

 Customers prefer Petrol Version cars more than Diesel or

L.P.G. version.

 Most of the Customers were found satisfied with cars’

performance.

 Around 50-75% of customers purchase cars on installment

basis.

 From survey, it was found that around 64% were Maruti users.

 Pricing of cars was found reasonable by most of the

customers.

56
  Customers were satisfied with dealer’s service.

Suggestions and Recommendations

To Dealers:

 As dealers directly interact with customers, they should

maintain proper Customer Relationship Strategy.

 They should offer service benefits and offerings according to

the various customers segments. Which may include
classification on the basis of
- Income group
- Age group

 Dealers should help customers in taking right decision in

buying a car and should give complete information about the
car before customers purchase it.

 The customers, who want to purchase a car on installment

basis, should also be provided with additional accessories as
there is in case of cash purchase.

 Dealers should provide good after sales service and should

maintain good relations with customers so that reference can
be taken and goodwill is created.

57
To Company

 Maruti should more frequently come with mid-size models

like sx4 and swift Dzire as their sedan model is faring very
well in market.

 Maruti and Hyundai should come up with diesel model of mid-

size cars as market survey says that the use of diesel cars will
increase by 50% in 2014.

 Hyundai should try to increase their number of dealers and

service stations so that customers can get better service.

 Both companies should try to build trust in customers as

competition is increasing day by day.

 Company should try to give some good schemes and offers

and discounts for old and new customers.

 Maruti should try to expand its range of cars from small car
and hatchbacks to more mid-size cars like sx4 and swift mid
size version.

58
 Conclusion

Maruti Suzuki is forward in its marketing strategy. Maruti has its

vast network of dealers and service centers and hence they are able
to provide good after sales services and are able to maintain good
relationship with customers, which is their strongest point. Maruti is
also benefited with its goodwill and Brand name which is already
there in market. So Maruti can use these as an opportunity to bring
new and innovative car models in market and try to attract more and
more customers. It can be seen that Maruti is trying to attract
customers from all segments by launching cars like sx4, Swift, Ritz
but their main preference is “A” segment cars only

Hyundai’s strategy of endorsing their products with celebrities has

got a very good response but Hyundai should advertise better to
create a good picture of its products by transferring the key good
things about its cars. Hyundai has a good track record of having
successful diesel mid size cars in its portfolio and it should encash
the same opportunity to launch the diesel versions of small car
before Maruti gets too much competitive advantage. And Hyundai
should also try to increase their service centers so that customers can
find it convenient to get get their car serviced.

59
 Annexure

QUESTIONAIRRE TO MARUTI/ HYUNDAI DEALERS

Q.1) Do you think Marketing Strategies help to increase sales of a

product?

a) Yes b) No

Q.2) How did Marketing Strategy help you?

Q.3) Which Promotional Strategies did you use?

Q.4) Which type of Promotion had attracted maximum number of

Customers?

Q.5) Do you think Promotion through Mass Media is more effective

than any other medium?

a) Yes b) No

60
Q.6) Does a Grand Launch of a Car makes Selling of a car easy?

a)Yes b) No

Q.7) Which Car model of your company is demanded by customer

the most?

Hyundai-

a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata

g) Any Other

Maruti-

a) Ritz b) Swift c) sx4 d) Alto e) Estilo f) any

other

Q.8) Which car of your company gives best mileage?

Hyundai-

a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata

g) Any Other

Maruti-

a)Ritz b) Swift c) sx4 d) Alto e) Estilo

f) any Other

61
Q.9) What is the Customer Preference in terms of fuel variant?

a) Petrol version b) Diesel version c) L.P.G version

Q.10) While Buying the Car, what are the criteria in the Buyers’

Mind?

a) Quality b) Comfort c) Performance d) Milage

e)Price

Q.11) Which other Automobile Company do you think is Biggest

Competitor for your company?

a) Maruti / Hyundai b) Ford c) Honda d) Tata

e) Mahindra and Mahindra

Q.12) Which amongst all the car models offered by your company

will you rate as Number 1 for its Complete Package?

Q.13) Most of the Sale takes place on which Basis?

a) Cash b) E.M.I c) Cheque d) Any other

62
Q.14) How many % of Customers purchase car on installment basis?

a) 0-25 b) 25-50 c) 50-75 d) 75-100

Q.15) With which Bank you are tied up for E.M.I system?

a) I.C.I.C.I b) HDFC c) IDBI d) HSBC e) SBI

f) Any other

Q.16) Do you offer discount to customer on Cash Purchase? If yes,

how much?

a) 1% b) 2% c) 3% d) 4 e) 5% f) more than 5%

Q.17) Do you think Tata Nano’s entry in market will affect the sale

of your Cars?

Q.18) How much effect do you think recession has caused on your

Business?

Q.19) Do you think during the recession phase of the market,

spending huge amount on various marketing strategies is a wise

decision?

63
a) Yes b) No

Q.20) As observed, most of the buyers are less than 35 years of age,

what offers do you provide to attract them?

Q.21) What do you think is the reason behind customers’ loyalty to

Maruti / Hyundai or faith in Maruti/ Hyundai?

a) Brand Name b) Quality c) Service d) Reasonable price

e) Range of cars

Q.22) Do you think sponsoring Reality Shows and awarding cars to

the winner helps promoting the car and increases profitability in

return?

a) Yes b) No

Q.23) In the initial stage which pricing strategy will you prefer?

a) Skimming b) Penetration

Q.24) Do you also deal in second hand cars?

a) Yes b) No

64
Q.25) How much do you believe in Customer Satisfaction and After

Sales Service?

Q.26) What is the response for new Hyundai i20 / Maruti Ertiga?

Q.27) Do you conduct Marketing Research activity?

a) Yes b) No

Q.28) What type of analysis do you conduct for Market Research?

Q.29) How does the company help to Promote Your (dealer’s)

Business?

Q.30) Does the company arrange seminars for giving information

about Future Plans and Car Launches?

a) Yes b) No

Q31) How much increase in sales are recorded during festive

season?

65
 QUESTIONAIRRE TO CUSTOMERS

Q.1) Which company’s car do you use?

a) Maruti b) Hyundai c) Other

Q.2) What is the car model that you are using?

a) Santro b) i10 c) Getz d) i20 e) Alto f)Swift

g) Ritz h) Zen i) other

Q.3) What is the reason behind choosing Maruti/Hyundai car, and

not others?

a) Brand b) Quality c) Price d) Range of cars e)Complete

package

Q.4) How did you find the car’s performance?

a) Excellent b) Good c) Average d) Poor

Q.5) Has it met your expectations?

a) Yes b) No

66
Q.6) What was the main criteria in your mind while purchasing car?

a) looks b) performance c) comfort d) mileage e) all of

them

Q.7) If you have used Maruti/ Hyundai car before also, what reasons

have forced you to buy Maruti/Hyundai again?

a) Brand b) Quality c) Price d) Range of cars e) all of

them

Q.8) Do you think prices are reasonable?

a) Yes b) No

Q.9) Which version would you like to purchase?

a) Petrol b) Diesel c) LPG

Q.10) Which Marketing strategies have attracted you to buy a car?

a) T.V ads

b) Launch of car

c) Newspapers

d) Word of Mouth publicity.

67
 e) Other

Q.11) How did you find dealers services while buying car?

a) Excellent,

b) Good

c) Average,

d) Poor

Q.12) Do dealers offer any extra benefits other than what company

offers?

Q.13) What are your expectations from the dealers?

a) On time delivery

b) Good Service

c) Detailed information about the car before purchase

d) Solving complaints/queries immediately

e) All of above

Q. 14) Out of following which Hatchback car would you like to

purchase?

68
a) Ritz, b) EON, c) i10, d) Spark, e) Fabia

Q.15) Would you recommend your friends, relatives to buy Maruti/

Hyundai car?

69
 Bibliography

Books

 Marketing Management – Philip Kotler

 Marketing Management –Sharma Arun

Magazines
 Auto Drive
 Indian Auto
 Over Drive

Websites
 www.marutisuzuki.com
 www.hyundai.com
 www.google.com
 www.autoindia.com
 www.overdrive.com
 www.wikipedia.com
 www.netmba.com

70