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Comparative Study of Maruti and Hyundai
Comparative Study of Maruti and Hyundai
Submited to :- Submitted by
1
DECLARATION
AYUSH BHATNAGAR
2
ACKNOWLEDGEMENT
I would also like to thank all the Maruti and Hyundai dealers whom I
met during the survey, for giving all the required information.
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INDEX
1 Declaration I.
2 Acknowledgement II.
3 Introduction 7
5 Theoretical View 21
6 Practical View 33
8 Annexure 54
9 Bibliography 61
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CHAPTERWISE PRESENTATIONS
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
1.5 Limitations of the study
5
List of Charts/ Graph
6
Introduction
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Government of India has resulted in making India as one of the prime
business destination for many global automotive players.
8
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.
Title of Study
Comparative Study of Marketing Strategies of Two
Automobile Companies
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.
- Through which strategies maximum customers are attracted.
- To know recession effect on sale of cars
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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 require to satisfy customer needs and wants.
Primary Data:-
Secondary Data:-
Magazines.
Internet.
Period of Study:-
The Period of Study is from JAN-2018 TO MAR-2018
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Maruti Suzuki’s Profile
Maruti rolled out its 1st car, Maruti 800 with 800cc engine in
December 1983. This model targeted at masses and was lanuched
as “People’s car”. In early 2003, Maruti Udyog, a joint venture
between Suzuki and Indian Govt. dominated India’s automobile
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market with 54% market share and with annual production capacity of
5lac cars. The company dominated Indian Small car market with a
share of 100% in A seg, 36% in B seg and 86% overall.
In recent years, Maruti has made major strides towards its goal of
becoming Suzuki Motor Corporation's R and D hub for Asia. It has
introduced upgraded versions of WagonR, Alto and Swift Dzire,
completely designed and styled in-house. Maruti's contribution as the
engine of growth of the Indian auto industry, indeed its impact on the
lifestyle and psyche of an entire generation of Indian middle class, is
widely acknowledged. Its emotional connect with the customer
continues
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of-the art driving training and research institute that it manages for the
Delhi Government.
The company's service businesses including sale and purchase of
pre owned cars (TrueValue), lease and fleet management service for
corporates (N2N), Maruti Insurance and Maruti Finance are now fully
operational.
Hyundai Motor India Ltd, continuing with its tradition of being the
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fastest growing passenger car manufacturer, registered total sales of
984,328 vehicles in the calendar year (CY) 2017, an increase of 49.6
percent over CY 2007. In the domestic market it clocked a growth of
22.4 percent with 542,387 units in 2017, while overseas sales grew
by 92.5 percent, with exports accounting for 541,931 units in 2017.
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Hyundai Motor Company, S.Korea, the parent of HMI, has been
doing considerable work on sustainable Environment Management .
The company has a well defined framework in place for developing
products that reduce pollutant emissions and processes for
preservation of natural resources and energy along all the stages of
the product lifecycle from production, sales, use to disposal and has
been awarded the ISO 14001 certification for all its three major plants
in Ulsan, Asan and Jeonju in S.Korea.
Cars of Hyundai
Hyundai deals in wide variety of cars which includes Eon , grand i10,
i20, Accent, Verna, Sonata, Tuscon, Elantra, Santa Fe etc.
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HISTORY OF INDIAN AUTOMOBILE INDUSTRY
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formed a company named Maruti Udyog Limited (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/-.
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
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POST- LIBERALIZATION PERIOD
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Major Manufacturers in Automobile Industry and their Cars
Tata Motors.
Cars:- Indica, Indigo Marina, Safari, Sumo, Nano
Honda
Cars:- Honda City, Civic, Accord
BMW
Cars:- 3 Series, 5 Series, 6 Series, 7 Series, X3, and X5.
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Mercedes
Seller’s Market.
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fig:- 1
Grand Launch :-
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Recently Tata Nano car was grandly launched and created a buzz in
market. After the launch media aggressively took interest in providing
the minute details about the car to the customer by showing test
drives, etc.
Once the car is launched they give adds in every possible
newspaper, car magazines, put hoardings, display car models in the
malls.
This is one of the most effective ways adopted by the companies and
very successful marketing strategy, which has helped company
increase their sales.
In this method, companies provide option to buy a new car of your
choice in exchange of their old cars, but the price of old car is
decided by the dealer by looking at 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.
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Adding Star Value to product- Brand Ambassador :-
Mall Displays
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Various companies display their cars in Malls so as to get prime
attention. People go in Malls for shopping and hangouts with their
friends and family. They conduct small contests and give gift hampers
as prize. Thus they try to attract crowd towards them.
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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.
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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
10.1
3.9
4.3
6.7 46.9
13.5
14.6
General Motors India Pvt Ltd. Honda Siel Cars India Ltd.
Others
fig : 2
Advertisements
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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.
Baleno: “Missed the flight catch Baleno” The most comfortable Car
even in long drives.
Esteem: “My Daddy’s Big Car” Affordable mid size car
Display
If you visit any of the Maruti Dealers showroom what you will notice is
one thing very similar, that is the display. They display only 2-3 cars
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in the showroom. Well this is the strategy to make people concentrate
on only few choices otherwise they might get distract and get
confused. Here Maruti wins one customer.
Exchange offers
Maruti has also placed its step and progress by marketing through
exchange offers. In this it makes possible to leave and get it replaced
for a new one with barely some amount. This is one of the greatest
ways to attract more and more customers and also makes possible to
increase sales.
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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.
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Marketing Strategies of Hyundai
Advertisements
Hyundai had used Bollywood star Sharukh Khan as Brand
Ambassador for promoting their car. Through this they tried to attract
the customers.
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Free checkups
Exchange offers
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Cold callings
Display
INTERPRETATIONS TO QUESTIONAIRRE
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Dealers Survey
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.
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 walkins.
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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. Gives 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.
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Promotion through Media
Maruti’s Survey:-
Most of the dealers felt that media promotions are more
attractive than other medium because of its mass reach.
Hyundai’s Survey:-
Hyundai dealers also had more positive reply for media
publicity rather than other mediums.
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
Maruti’s Survey:-
Most of the dealers replied that swift is the most demanded car
amongst all Maruti cars, while next best alternative is Alto.
Hyundai’s Survey:-
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Dealers found i10, i20 and santro as the most demanded cars
amongst other Hyundai cars.
Maruti’s Survey:-
Dealers replied that Ritz and Alto gives best mileage.
Hyundai’s Survey:-
Dealers replied that i10 and santro car’s 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 more petrol version only.
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 criteria’s but
look for price and comfort more.
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Biggest Competitor
Maruti’s Survey:-
Maruti dealers replied Hyundai as the biggest
competitors. Hyundai’s Survey:-
Hyundai dealers found Maruti as their biggest competitor.
Maruti’s Survey:-
Dealers rate Swift as a no. 1 car for its complete package.
Hyundai’s Survey:-
Hyundai rate i10 and i20 as their no. 1 car for complete
package.
Way of Purchase
Maruti’s Survey:-
According to dealers Maruti cars are sold mostly on EMI basis.
50 -75% customers purchase cars 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.
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fig.3
Out of 10 dealers 7 dealers replied that 50-75% of their total sales are
on installment basis.
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.
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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:-
Most of the dealers replied that recession didn’t affected them
at all, but few dealers replied that there was marginal decline in Cars
sales.
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.
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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
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.
fig 4
41
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.
Maruti’s Survey:-
Dealers think that customers are loyal to Maruti is because of
its service, Quality, range of cars and Brand Name
Hyundai’s Survey:-
According to them because of its offerings of variety of cars in
all segment and its quality customers are loyal to Hyundai.
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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.
fig 5
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.
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Company support to Dealers
Both companies dealers replied that company makes selling of
car easy by doing promotion through various ways. Company also
motivates employees to sale 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.
Customers survey
Users
Below graph shows us that 63.75 % are Maruti users i.e 51 users out
of 80 where as remaining 29 users i.e 36.25% are Hyundai
customers .
fig 6
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Most preferred cars
After the survey it was found that Santro from Hyundai and Swift from
Maruti from the various range available are the most preferred cars
amongst the customers. Also Zen is more in demand.
fig 7
It is found that customers stay loyal to Maruti and Hyundai rather than
other brand. They have faith in this brands due to their goodwill, good
service, complete package and reasonable prices
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fig.8
fig.9
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Customer’s expectation
fig 10
fig 11
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It was found that while purchasing the car customer’s look for the
complete car of their choice which gives them good performance,
looks, mileage and also it should be reasonable in price.
Pricing
Most customers found that prices of these cars are affordable for their
pockets whereas few customers found that price is little higher.
fig 12
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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.
fig. 13
fig.14
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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
fig.15
Expectations from
dealers
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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 from Maruti and i10, i20, and Santro from Hyundai are
most demanded cars by customers.
▪
Customer prefers Petrol Version cars rather 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.
▪
Customers were satisfied with dealer’s service.
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Suggestions and Recommendations
To Dealers
▪
As dealers directly interact with customers, they should
maintain proper Customer Relationship Strategy.
▪
They should differ 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 for
buying car and should give complete information about car
before customer purchase car.
▪
The customers purchasing 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 get and goodwill is created.
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To Company
▪
Maruti should more frequently come with mid-size models like
sx4 and swift as this sedan model is doing very good 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% by 2010.
▪
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.
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Conclusion
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Annexure
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Q.8) Which car of your company gives best milage?
a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata g)
Any Other
a) Ritz b) Swift c) sx4 d) Alto e) Estilo f) any other
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.12) Which car will you Rate as No.1 for its Complete Package?
a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata g) Any Other
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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.17) Do you think Tata Nano’s entry in market will effect sale of your
Cars?
Q.18) How much do you think, recession has effected your Business?
Q.19) Do you think in this recession time also, spending huge amount
on various marketing strategies is wise decision?
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 customer being loyal to
Maruti / Hyundai or have faith in Maruti/ Hyundai?
a) Brand Name b) Quality c) Service d) Reasonable price e)
range of cars
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Q.22) Do you think sponsoring Reality Shows and Giving cars to
Winner helps Promoting car and increases profitability in return?
a) Yes b) No
Q.23) In the initial stage which pricing strategy you will prefer?
a) Skimming b) Penetration
Q.26) What is the response for new Hyundai i20 / Maruti Ritz?
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QUESTIONAIRRE TO CUSTOMERS
Q.3) Why you choose Maruti/ Hyundai car, and not others company
car?
a) Brand, b) Quality, c) Price, d) Range of cars, e) Complete package
Q.6) What was the main criteria in your mind while purchasing
car? a) looks, b) performance, c) comfort, d) milage, e) all of them
Q.7) If you have used Maruti/ Hyundai car before also, what reasons
has forced you to buy Maruti/ Hyundai again?
a) Brand, b) Quality, c) Price, d) Range of cars, e) all of them
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Q.8) Do you think prices are reasonable?
a) Yes, b) No
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 company offers?
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Q. 14) Out of following which Hatchback car would you like to
purchase?
a) Ritz, b) Getz, c) i20, d) Spark, e) Fabia
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Bibliography
Books
▪
Marketing
Author- Dr.N.Rajan Nair
Sanjith R Nair
Publications- Sultan chand and Sons
▪ Marketing Management
Author- Philip Kotler
Publications- Prentice Hall of India Pvt ltd.
Magazines
▪ Auto Drive
▪ Indian Auto
▪ Over Drive
▪
Websites
▪ www.marutisuzuki.com
▪ www.hyundai.com
▪ www.google.com
▪ www.autoindia.com
▪ www.overdrive.com
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