"Consumer Buying Preference Towards Mahindra": Summer Training Report ON
"Consumer Buying Preference Towards Mahindra": Summer Training Report ON
ON
“Consumer buying preference towards Mahindra”
SUBMITTED TO : SUBMITTED BY :
AFFILIATED TO
1
ACKNOWLEDGEMENT
Shakti
DECLARATION
2
I Shakt, Roll No 443 in class MBA of the Matu Ram Institute of Engg. & Mgmt, Rohtak hereby declare
that the Project Report on entitled “ Consumer Buying Preference towards Mahindra” is an original work
and the same has not been submitted to any other institute for the award of any other degree.
(Faculty)
Counter Signed
TABLE OF CONTENTS
3
CHAPTERS
CHAPTER – 1 INTRODUCTION
Bibliography
Annexure
4
EXECUTIVE SUMMARY
5
EXECUTIVE SUMMARY
Today we are moving in that era, where Companies are not just a single entity, they are moving
away from the traditional way they used to be, breaking barriers of being limited to a single
sector. Understanding the needs of different segments of the consumers, and Integrated from
Other firms who are in completely different sectors; that is slowly we are moving in a
Interdependent economy and all this can be attributed to numerous reasons, but some of the
prominent causes for this fundamental shift is Globalization, Use of Innovative
tools/techniques/methods in Businesses, Technological advancements, and Changing customer
and Society.
This study gives an overview of the Indian automotive Industry, its major players, growth and
outlook. This report also provide ample of information regarding Mahindra & Mahindra Ltd..
This report provides an analysis of the Internal as well as External situation of Mahindra &
Mahindra Ltd in the form of SWOT Analysis and PORTER’S FIVE FORCES Model.
This project explores the consumer buying preference towards Mahindra Scorpio. The detailed
analysis of marketing, a consumer behavior and brand preference of SUV is carried out in
Bangalore. As a result, focusing on an industry where brands, marketing knowledge and
distribution networks have been important determinants in the growth and survival of firms. It
reaches distinct conclusions. The project illustrates the analysis and interpretation of data. Finally
it concludes with findings and recommendations of the study which may be useful for general
public as even the manufacturers and dealers can understand the dimensions reflecting brand
preference of passenger cars and impact of all these factors on customer satisfaction.
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CHAPTER -1
INTRODUCTION
INTRODUCTION
The fast evolving Indian market is one of the most promising in the world and so is the Indian
consumer. Rising incomes, multiple income households, exposure to international life styles and
media, easier financial credit and an upbeat economy are the key drivers enhancing consumer
aspirations and consumption. India, with over one billion people comprising of different
segments of consumers, based on class, status, and income, is a huge and lucrative market. This
market is undergoing a sea change and the impetus to growth is fuelled by qualitative changes in
the consumers' preference. There has been a significant increase in awareness among the Indian
consumers. They are discerning and are beginning to demand. Their spending has increased and
the way they spend on various items too has changed in the recent years. Having become much
more open- minded and experimental in their perspective, a discernible shift in their preference
in favor of higher-end, technologically superior branded products can be noticed. The rising rate
of growth in disposable income with higher propensity to consume has changed the lifestyles and
7
the socio-economic environment of the market. An interesting fact is that the Indian market has a
substantial middle class, that is roughly estimated at 250 million people with a sizable disposable
income. The middle-income group ($1,162-$1,190) spends more on consumer expendables than
the rich do, thus contributing significantly to the changes in the market. Combined, the middle
and the lower income group provide 60% of the value of the Indian market (Consumer Outlook,
2011). This income-related population class has its own consumption pattern and behavior. Data
of these patterns serve as an important indicator for forecasting and understanding consumer
behavior. In fact, it becomes imperative for companies to understand the preferences of these
customers, which will enable them to embark on strategies of effectively reaching them . This
research attempts to study the p of the consumers buying and with specific reference to the
product category Mahindra Scorpio.
8
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
Sales have increased with the entry of several foreign manufacturers and the introduction of
new vehicle models. The report also deals with aggressive marketing strategies undertaken by
different manufacturers in India. This highlights key issues influencing the automotive industry in
India such as import and excise duties, emission norms etc and it also deals with various
government regulations.
10
The trend of automobile production and market share of various segment is shown in the next
page. The graph shows how the production of automobiles has increased since 1971.
Automobile production in India since 1971-2003 (source: SIAM and ACMA data)
11
Tata Motors
12
Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD
14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in
passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility
vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's
second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata
Motors as has produced and sold over 4 million vehicles in India.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the domestic car market. The
company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish
hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle
Grand Vitara.
Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth largest automobile
company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter.
Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes
the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent
and the Verna in the C segment, the Sonata Transform in the E segment.
Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%
Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler
segments directly. The company competes in the Light Commercial Vehicle segment through its
joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car
segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the
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domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles
(including 44,533 three-wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar
Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the
previous year.
Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was
launched in South Africa. The company formed a new joint venture Mahindra Automotive
Australia Pty. Limited, to focus on the Australian Market.
FORD
Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India.
Ford India Private Limited's head quarters are located in Chengalpattu, Chennai, Tamil Nadu. It
currently is the 6th largest car makert in India after MarutiSuzuki, Hyundai, Tata, Mahindra and
Chevrolet.
TOYOTA
Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor
Corporation and the Kirloskar Group, for the manufacture and sales of Toyota cars in India.. It
currently is the 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra.
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission
statement aims to play a major role in the development of the automotive industry and the
creation of employment opportunities, not only through its dealer network, but also through
ancillary industries with a business philosophy of "Putting Customer First".
SKODA
Škoda Auto India Private Limited, more commonly referred to as Škoda Auto India,
established November 2001, is a fully owned subsidiary of the Czech automotive
manufacturer Škoda Auto and a division of Volkswagen Group Sales India.
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15
Company Overview
COMPANY PROFILE
Vision Statement: To create a fully collaborative environment in which suppliers can deliver
exactly what the company needs, when it needs it, and at a competitive cost
16
Mahindra & Mahindra Limited, Automotive Sector is a major player in the automotive
industry in India. It is a part of Rs. 8000 Crores Mahindra group which manufactures Multi
Utility Vehicles ( MUVs- further classified into soft tops, hard tops and pick-ups), Light
Commercial Vehicles (LCVs) ,three wheelers two wheelers.
M&M's association with the automobile business dates back to 1945. The Company was
incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian
market, initially by importing and assembling Willys Jeep kits. The manufacture of utility
vehicles commenced in 1954 in collaboration with Willys Overland Corporation and its
successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the Daimler
Chrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV) in
1965. The Company has recently entered the three-wheeler market.
Over the years, the Mahindra brand of vehicles have come to represent high quality,
ruggedness, durability, reliability, easy maintenance and operational economy. These are the
qualities that have endeared the vehicle to individuals as well as institutions like the Indian
armed forces. M&M is the leader in the MUV business in the country since inception.
M&M has comprehensive manufacturing facilities with high level of vertical integration.
M&M's automotive division has four manufacturing plants, three in the state of Maharashtra and
one in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-
utility vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles and
three-wheelers are manufactured at the Company's plant in Zaheerabad in Andhra Pradesh.
Our Mumbai and Nasik plants with the R&D facility at Nasik are ISO/TS 16949
certified. The Mumbai plant has also been recommended for the TPM excellence award. Our
engine plant at Igatpuri has QS 9000 certification. Our LCV & three-wheeler plant at Zaheerabad
have ISO 9001:1994 certification. Both of these plants are also working towards TS 16949
certification. Our plants in Mumbai and Igatpuri are also ISO 14001 certified.
M&M has a strong Research & Development set-up, with over 300 engineers in the
automotive division. The Company's technical prowess is proven by negligible import content in
17
our vehicle and by the design and development of a totally, from ground upward, new
contemporary SUV - Scorpio.
The division's marketing efforts are supported by a network of more than 275 dealers
across the country, which are managed by 20 sales offices. Additionally, the division has a
national network of authorized service stations and stockiest to meet customer needs for
servicing and spare parts.
Having conquered a substantial portion of India's semi-urban and rural markets, the
division has in recent year’s secured significant success in urban regions following the
introduction of premium MUVs like Bolero, and Scorpio. Scorpio is M&M's first indigenously
developed Sports Utility Vehicle - an off road vehicle with car like comforts. The Scorpio was
launched in June 2002 and has been universally acclaimed. It was declared to be the "Car of the
Year" by CNBC AutoCAD, BBC Wheels and Business Standard Motoring.
SWOT ANALYSIS:
STRENGTHS
WEAKNESS
Highly dependent on rural areas.
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Possess less technological power in comparison to foreign players.
OPPURTUNITIES
Stepping into new business due to possession of huge cash eg: communications, medical,
airlines etc.
Launching vehicles in untapped markets of different countries.
THREATS
Incoming of foreign players.
Increasing cost of fuel.
Increasing competition.
The Mahindra Scorpio is an SUV manufactured by Mahindra & Mahindra Limited, the flagship
company of the Indian Mahindra Group. It was the first SUV from the company built for the
19
global market in 2002. The Scorpio has been successfully accepted in international markets
across the globe, and will shortly be launched in the United States.
The Scorpio was conceptualized and designed by the in-house integrated design and
manufacturing team of M&M. The car has been the recipient of three prestigious awards: the
"Car of the Year" award from Business Standard Motoring as well as the "Best SUV of the Year"
and the "Best Car of the Year" awards, both from BBC World Wheels.
DIFFERENT GENERATIONS
First Generation
Soon after the success of the Scorpio, Mahindra launched an upgraded Scorpio with plush
seats and rear centre arm rest, dual tone exterior color and various minor changes.
Second Generation
In April 2006, the company launched an upgraded Scorpio – dubbing it the 'All-New'
Scorpio.
In June 2007, Mahindra launched a pick-up version in India known as the Scorpio
Getaway.
Third Generation
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* Scorpio to capture 45 per cent of the premium hard top market
* Scorpio to sell 24,000 units in F04
* Mahindra to emerge as a true urban player
Market Positioning
It was positioned as such that it should communicate that the vehicle is better than rest of
all the UV cars and is a better buy in terms of money.
Mahindra Scorpio LX : This is the base model with many advanced features such as
mHawk engine, digital immobilizer, collapsible steering column, crash protection
crumple zone, illuminated spoiler, sporty bonnet scoop and tubeless tyres. In November
2011, a 4WD version was introduced in the LX trim.
Mahindra Scorpio Getaway : This variant is powered by the 2.6L, 2609cc, diesel engine.
It satisfies only BS III emission norms, so it is not available in metro cities.
Mahindra Scorpio SLE : This is an upgraded version with additional features like ABS,
air dams and mud flaps, front fog lamps, voice assist system, electrically operated
ORVMs and middle row sliding seats.
Mahindra Scorpio VLX : This is an upgraded version with additional features like sporty
decals, alloy wheels, anti pinch smart windows, cruise control and audio controls on the
steering wheel, dual airbags, micro hybrid technology, 2 Din audio system, intellipark,
tyre tronics, and blue vision bulbs.
Mahindra Scorpio VLX AT : This is the premium model with an additional feature of an
automatic transmission gearbox.
Mahindra Scorpio VLX AT 4WD: this is the premium model with dual airbags, ABS and
4WD.
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PROJECT PROFILE
22
PROJECT PROFILE
There is only one valid definition of a business purpose: to create a customer. The project
deals with how Mahindra should focus on to create customers. This Process emphasizes the
importance of various steps in order to create and retain customers, because today there are
plenty of options available for the customers, so for any firm it’s crucial that they create value
customers and keep reminding them about the recent happening and other beneficial
associations. This research is addressed from the perspective that in order to determine the key
attributes which determine consumer’s perception and buying preference towards Mahindra
Scorpio, the correct meaning of the construct must be clearly defined from the start.
This paper describes the research problem, “the SUV product class of the Mahindra as
perceived by consumers via the Construct definition, Object classification, Attribute
classification, SUV consumers for rater-entity classification. The attributes are formulated using
content analysis by the rater entity based on consumer responses. An analysis and interpretation
of the respondants statements are presented. This is followed by a discussion of the advantages
and disadvantages of the methodology and recommendations for further research.
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CHAPTER-2
METHODOLOGY
24
METHODOLOGY
This study focuses on the decision-making process and resulting consumer buying preferences
towards Mahindra Scorpio . It provides information that may help the organization to identify
opportunities and to help them to decide if the market is a potentially profitable segment, after
the evaluation of the size, growth, accessibility and responsiveness of the consumers. It provides
answers to questions about the buying preference of SUV and provide organization with the
necessary information to develop effective marketing strategies.
RESEARCH DESIGN
DATA SOURCE
The study is an empirical research based upon Primary data. A detailed survey has to be
conducted from among car owners with the help of structured interview schedule so as to elicit
first-hand information about brand equity. This particular study has used in depth interview as a
means for obtaining primary data. Survey method has been adopted to elicit the views of local
and global brand car owners.
SAMPLE SIZE
The customer’s preference towards SUV is studied by administering structured interview
schedule with 50 customers in Bangalore city. I have adopted cluster-sampling techniques for
choosing sample respondents. The dealers of selected car brands are identified as clusters.
Consumer buying is related with several dimension like age, gender, perception etc.
27
CHAPTER-3
28
Age Groups No. of Percentages
Respondents
Less than 25 5 10
25-35 8 16
35-45 18 36
45-55 14 28
55-65 5 10
TOTAL 50 100
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Table No. 3.1 shows the Analysis on the basis of age, 36 per cent of the total respondents are in
the age group of 35-45 years, followed by 28 percent in the age group of 4 5-55 years of age. Ten
cent of the total are below 25 years. This reveals that maximum respondents are in the age group
of 25-45 years.
MALE 40 80
FEMALE 10 20
TOTAL 50 100
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Table No.3.2 shows the gender of the respondent’s majority of the respondents do male with a
sample size of 50 constitute 80% and remaining are female respondents
METRIC 4 8
HSC 12 24
GRADUATE 16 32
POST GRADUATE 5 10
PROFESSIONAL DEGREE 13 26
T0TAL 50 100
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Table no.3.3 shows the analysis of respondents on the basis of education qualification. 32 percent
are graduate while 26 percent have professional degree.
Professional 12 24
Govt. employee 6 12
Pvt. employee 10 20
Own Business 22 44
TOTAL 50 100
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Table No.3.4 shows the analysis of occupation of respondents. A maximum forty four per cent
of the total respondents have their own business, 12 percent are Government employee, and 20
percent of the respondents are private employees while 24 per cent of the respondents are
professionals.
Mahindra Scorpio 30 60
Tata Safari 8 16
Toyota Innova 12 16
Total 50 100
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Table No. 3.5 shows the car models used by the car owners. Sixty per cent of the total
respondents are using scorpio, sixteen per cent have safari and rests of the twenty four percent of
the respondents have Innova It clearly shows that 76% of the respondents have local brands.
Price 12 24
Brand status 17 34
Mileage 9 18
Total 50 100
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Table No 3.6 shows the Factors incfluencing brand preferance According to the response of
customers 34% of the respondents preferred brand status as important factor influencing brand
preference, 24% of the respondents preferred price as an important factor, 18% of the
respondents preferred Mileage as an important factor, 14% of the respondents preferred for
low maintaining cost and rest 10 per cent preferred after sales service as an important factor in
brand preference.
Very high 20 40
High 15 30
Medium 10 20
Low 5 10
Total 50 100
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Table No. 3.7. shows the level of satisfaction, forty per cent of the respondents are highly
satisfied with the car which they are using, thirty per cent of the car user are also satisfied with
the car and ten per cent of the car users are not satisfied with the performance of their car. This
reveals that a maximum of seventy per cent of the respondents are satisfied with the car which
they are using
Yes 20 40
No 30 60
Total 50 100
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Table No. 3.8 shows the status of the respondents towards the brand loyalty. The response
shows that 60 per cent of the respondents do not want to change their brands often, while 40
per cent of the respondents said they may change their car brands.
preferred SUV
Safari Scorpio Innova Total
gender Male Count 8 23 9 40
37
% within gender 20.0% 57.5% 22.5% 100.0%
female Count 0 7 3 10
% within gender .0% 70.0% 30.0% 100.0%
Total Count 8 30 12 50
% within gender 16.0% 60.0% 24.0% 100.0%
Chi-Square Tests
a 2 cells (33.3%) have expected count less than 5. The minimum expected count is 1.60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on preference of SUV.
Crosstab
38
gender
Total Count 12 9 17 5 7 50
% within
24.0% 18.0% 34.0% 10.0% 14.0% 100.0%
gender
Chi-Square Tests
Asymp. Sig.
Value Df (2-sided)
Pearson Chi-
6.495(a) 4 .165
Square
Likelihood Ratio 5.478 4 .242
Linear-by-Linear
.046 1 .831
Association
N of Valid Cases 50
a 6 cells (60.0%) have expected count less than 5. The minimum expected count is 1.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of genders on factors of brand preference of SUV.
satisfaction level
low Medium High very high Total
Gender Male Count 4 6 13 17 40
% within
10.0% 15.0% 32.5% 42.5% 100.0%
gender
female Count 1 4 2 3 10
% within
10.0% 40.0% 20.0% 30.0% 100.0%
gender
Total Count 5 10 15 20 50
% within
10.0% 20.0% 30.0% 40.0% 100.0%
gender
39
Chi-Square Tests
a 5 cells (62.5%) have expected count less than 5. The minimum expected count is 1.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of gender on satisfaction level of SUV.
Crosstab
brand loyalty
No yes Total
Gender Male Count 24 16 40
% within gender 60.0% 40.0% 100.0%
female Count 6 4 10
% within gender 60.0% 40.0% 100.0%
Total Count 30 20 50
% within gender 60.0% 40.0% 100.0%
Chi-Square Tests
40
Linear-by-Linear
.000 1 1.000
Association
N of Valid Cases 50
Chi-Square Tests
Asymp. Sig. (2-
Value Df sided)
Pearson Chi-Square 27.727(a) 6 .000
Likelihood Ratio 33.056 6 .000
Linear-by-Linear Association .556 1 .456
N of Valid Cases 50
a 8 cells (66.7%) have expected count less than 5. The minimum expected count is 1.60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on preference of SUV.
41
age * factors of brand preference
H0: There is no impact of age on factors of brand preference of SUV.
H1: There is significant impact of age on factors of brand preference of SUV.
Crosstab
Chi-Square Tests
a 19 cells (95.0%) have expected count less than 5. The minimum expected count is 1.00.
42
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on factors of brand preference of SUV.
age * satisfaction level
H0: There is no impact of age on satisfaction level of SUV.
H1: There is significant impact of age on satisfaction level of SUV.
Crosstab
satisfaction level
Low medium High very high Total
Age 20 - 30 yrs. Count 1 3 4 3 11
% within age 9.1% 27.3% 36.4% 27.3% 100.0%
30 - 40 yrs. Count 0 0 3 7 10
% within age .0% .0% 30.0% 70.0% 100.0%
40 - 50 yrs. Count 3 4 6 4 17
% within age 17.6% 23.5% 35.3% 23.5% 100.0%
50 - 60 yrs. Count 1 3 2 6 12
% within age 8.3% 25.0% 16.7% 50.0% 100.0%
Total Count 5 10 15 20 50
% within age 10.0% 20.0% 30.0% 40.0% 100.0%
Chi-Square Tests
43
age * brand loyalty
Crosstab
brand loyalty
no yes Total
age 20 - 30 yrs. Count 8 3 11
% within age 72.7% 27.3% 100.0%
30 - 40 yrs. Count 7 3 10
% within age 70.0% 30.0% 100.0%
40 - 50 yrs. Count 9 8 17
% within age 52.9% 47.1% 100.0%
50 - 60 yrs. Count 6 6 12
% within age 50.0% 50.0% 100.0%
Total Count 30 20 50
% within age 60.0% 40.0% 100.0%
Chi-Square Tests
a 3 cells (37.5%) have expected count less than 5. The minimum expected count is 4.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on brand loyalty of SUV.
44
H0: There is no impact of occupation on preference of SUV.
H1: There is significant impact of occupation on preference of SUV.
Crosstab
preferred SUV
Safari Scorpio Innova Total
occupation public sector Count 1 5 0 6
% within
16.7% 83.3% .0% 100.0%
occupation
private sector Count 5 11 6 22
% within
22.7% 50.0% 27.3% 100.0%
occupation
Entrepreneur Count 2 14 6 22
% within
9.1% 63.6% 27.3% 100.0%
occupation
Total Count 8 30 12 50
% within
16.0% 60.0% 24.0% 100.0%
occupation
Chi-Square Tests
a 5 cells (55.6%) have expected count less than 5. The minimum expected count is .96.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of occupation on preference of SUV.
Chi-Square Tests
a 11 cells (73.3%) have expected count less than 5. The minimum expected count is .60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of occupation on factors of brand preference of SUV.
46
Crosstab
satisfaction level
low medium high very high Total
occupatio public Count 0 2 1 3 6
n sector % within
.0% 33.3% 16.7% 50.0% 100.0%
occupation
private Count 4 2 6 10 22
sector % within
18.2% 9.1% 27.3% 45.5% 100.0%
occupation
Entrepreneu Count 1 6 8 7 22
r % within
4.5% 27.3% 36.4% 31.8% 100.0%
occupation
Total Count 5 10 15 20 50
% within
10.0% 20.0% 30.0% 40.0% 100.0%
occupation
Chi-Square Tests
a 8 cells (66.7%) have expected count less than 5. The minimum expected count is .60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of occupation on satisfaction level of SUV.
47
Crosstab
brand loyalty
no yes Total
occupation public sector Count 4 2 6
% within occupation 66.7% 33.3% 100.0%
private sector Count 14 8 22
% within occupation 63.6% 36.4% 100.0%
entrepreneur Count 12 10 22
% within occupation 54.5% 45.5% 100.0%
Total Count 30 20 50
% within occupation 60.0% 40.0% 100.0%
Chi-Square Tests
a 2 cells (33.3%) have expected count less than 5. The minimum expected count is 2.40.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of occupation on brand loyalty of SUV.
Crosstab
48
factors of brand preference
low
brand after sales maintenance
price mileage status service costs Total
preferred Safari Count 5 0 3 0 0 8
SUV % within preferred
62.5% .0% 37.5% .0% .0% 100.0%
SUV
Scorpio Count 7 6 9 3 5 30
% within preferred
23.3% 20.0% 30.0% 10.0% 16.7% 100.0%
SUV
Innova Count 0 3 5 2 2 12
% within preferred
.0% 25.0% 41.7% 16.7% 16.7% 100.0%
SUV
Total Count 12 9 17 5 7 50
% within preferred
24.0% 18.0% 34.0% 10.0% 14.0% 100.0%
SUV
Chi-Square Tests
a 12 cells (80.0%) have expected count less than 5. The minimum expected count is .80.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of preferred SUV on factors of brand preference.
Crosstab
brand loyalty
No Yes Total
49
preferred Safari Count 5 3 8
SUV % within preferred
62.5% 37.5% 100.0%
SUV
Scorpio Count 20 10 30
% within preferred
66.7% 33.3% 100.0%
SUV
Innova Count 5 7 12
% within preferred
41.7% 58.3% 100.0%
SUV
Total Count 30 20 50
% within preferred
60.0% 40.0% 100.0%
SUV
Chi-Square Tests
a 3 cells (50.0%) have expected count less than 5. The minimum expected count is 3.20.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of preferred SUV on brand loyalty of SUV.
Oneway
50
ANOVA
satisfaction level
Sum of
Squares Df Mean Square F Sig.
Between Groups 1.342 2 .671 .648 .528
Within Groups 48.658 47 1.035
Total 50.000 49
Homogeneous Subsets
satisfaction level
Duncan
1 1
Innova 12 2.92
Scorpio 30 2.93
Safari 8 3.38
Sig. .297
51
Profile Value Value Accepted/
Rejected
This clearly depicts that Ho is rejected and concluded that Personal factors like age,
education qualification, gender, occupation and income status have significant
influence over the factors influencing brand preference.
FINDINGS
It is found that sixty percent people uses Mahindra Scorpio in SUV segment. Among all
respondents only forty percent people are willing to change the brand. People wants the
interiors of Scorpio to be improved.
It is found that brand is the most important factor while price is the second most
important factor while deciding in buying an SUV.
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It is found that seventy percent of the respondents are satisfied with the car which they
are using.
Respondents between the age group 25-45 are the most consumers of SUV and there is a
significant association between age and brand preference.
It is found that personal factors like age , gender, educational qualification, occupation have
significant impact on consumer buying behavior towards Scorpio .
It is found that people are factors of brand preference like price ,mileage ,brand status ,
mantainence cost , after sales service plays an important role in selecting the brand.
CHAPTER -4
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RECOMMENDATIONS
RECOMMENDATIONS
1. Indians are conscious about the price, fuel efficiency and mantainence cost . Whoever is
selling low-priced, fuel-efficient SUV with latest technology will succeed and they are
likely to see large volumes of sales. So Mahindra should try to improve Scorpio with
advanced technology so that its mantainence cost is low and fuel efficiency is high.
2. Relationship marketing strategy must be adopted to the customers owing Scorpio. The
marketers must try to build a relationship with the customer so that they feel special and
in turn becomes loyal to the brand. Brand loyalty programmes like owners group
magazine should be published containing the names of the new owners by welcoming
them to join the group. In this way they can create a strong relationship with the
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customers.
3. Customers wants comforts and luxury hence Scorpio must improve its interiors with rear
end cameras, GPS navigation etc.
CHAPTER-5
55
CONCLUSION
CONCLUSION
This report tries to present an idea about consumer buying preference of Mahindra Scorpio by
examining age, qualification, gender, profession. In trying to create strong brand loyalty,
company should be interested in assessing the degree of customer brand preference. The brand
strength depends on the perception of customers. Satisfied and loyal customers indicate positive
perceptions of brand. In time when competition is getting powerful, it is imperative for the firm
to seriously evaluate factors that are not only important in creating strong brand equity but also
assist them in achieving customer satisfaction and loyalty. The results of the study shows that
brand preference and brand loyalty play an important role in creating consumer buying behavior.
The Automobile industry has strongly striven towards globalization, which increasingly affects
56
the policy at local, regional and global levels. The present study made a systematic effort on
studying consumer brand preference towards Scorpio by analyzing the factors that influence
brand choice of the customers and revealed the impact of brand preference dimensions on
customer satisfaction. There is cut throat competitions in the market on price front and so they
have to find out better quality and low cost product.
The characteristic of this specific industry is that the marketing defines, creates and forms the
goods and their target groups, possibly more than any other industry in the world. Ability to meet
changing technology, customer’s needs and styling and shortening product life cycle are the
challenges that passenger car companies will have to face.
All said and done, this industry will continue to grow with time.
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CHAPTER-6
LEARNING OUTCOMES
LEARNING OUTCOMES
My 12 weeks in Mahindra & Mahindra Ltd. was a great Learning Experience for me, it gave
me first time Experience to Work in a MNC. The Project allocated to me was best thing that can
happen to any trainee because it covered almost every aspect of learning which I have acquired
in this last one year. It included Business Communication, Marketing Skills, Presentation Skills,
Understanding of importance of brand equity. I learned a lot about the Organization Structure
58
and the way Mahindra & Mahindra functions, how they analyze the market and set targets
depending on the sales data, how the Organization communicates with its clients and the
Customers, how different marketing functions are Organized and finally carried out.
It was really wonderful to learn all those things, my sincere thanks to my entire senior’s and
colleagues without their help it wouldn’t have been possible. Now, I am much more prepared to
jump in the corporate world, with a better understanding of it. Here everything has far more
reaching consequences and we worked under tight deadlines. Every job I did was given to me
with a time line attached to it, which pointed out still I have to learn when it comes to time
management. But I am satisfied with all my work given to me, since after 12 weeks I know I
have added some value to the company.
ANNEXURE
59
ANNEXURE
QUESTIONNAIRE
NAME : PROFESSION:
QUALIFICATION: GENDER:
1. Among the following, which SUV you own?
a) Mahindra Scorpio
b) Innova
c) Tata Safari
Yes No
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3. What comes to your mind when you see the following symbols?
1 2 3 4 5
(strongly
(disagree (Neither (Agree (Strongly
disagree agree
) ) agree)
) nor
disagree
)
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Scorpio is very comfortable
and luxurious
Customer satisfaction of
Scorpio is very high
i. Price
ii. Mileage
iii. Brand status
iv. Low mantainence cost
v. After sales service
7 .What do you think of Mahindra Scorpio against its competitors Tata safari and Innova?
please comment:
8 .Is there any aspects on which you believe Scorpio could improve?
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Please comment:
63
BIBLIOGRAPHY
64
BIBLIOGRAPHY
Internet links
www.mahindra.com
http://www.siamindia.com/scripts/industrystatistics.aspx
http://en.wikipedia.org/wiki/Mahindra_%26_Mahindra
http://www.gaadi.com/Mahindra-cars
Reference Books
Kotler, P., K, K., K, A., & J, M. (1972). Marketing management. (13 ed.). Pearson Education
India., Pg.115-137
Keller, K.(2008) Strategic brand management. (3 ed.). Prentice-Hall Education India. Pg.345-
368
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Abdul. M, Abdul.B. A and Edwin G. M (2006),consumer buying behavior of two wheelers in
tirunelveli city, Tamil Nadu .Indian journal of marketing,volume No. 04
Ambler T and Styles (1996), Brand development versus product development, Journal of
product and brand management, 6(4):223-234.
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