2974. Sales and Distribution System at Hyundai & Tata Motors

ACKNOWLEDGEMENT I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of execution of this study. It would be a mammoth task to  place on record my gratitude gratitude to each and every one of them but a whole hearted hearted attempt would be made nevertheless, least I be branded ungrateful. Mr. Adarsh AdarshAro Arora, ra, Facul Faculty ty Gu Guide ide,, ACCF, ACCF, Amity Amity I am very very thank hankfful to Mr. University, Noida, U.P. for her valuable guidance and support at all time.

AFZAL LODHI

EXECUTIVE SUMMARY

The automotive industry is an extremely reliable indicator of economic growth; quite obviously, its i ts growth boosts the economy’s performance.

In this report we study how two big players in the Indian automotive sector, namely TATA Motors and Hyundai Motors India manage their  sales and distribution system, the pace of growth we had mentioned earlier  led us to select this sector and these companies as they are among the best performers.

While one company was a truck manufacturer until the early nineties and the other a late entrant in the mid nineties as a subsidiary of a Korean Industrial conglomerate. We felt there would be a big diversity between both these companies in the distribution and sales, diversity in the form of models and structures.

Part A of the project is data collated from mainly secondary sources but it serves as the groundwork, giving the reader a good idea of the company we are studying. Part B has all the data and findings we have

collected on the field, we have interviewed dealers of both these companies and also company sources. We had circulated ci rculated questionnaires To understand the system better and also get an idea of what all the respondents thought of the system.

We have given certain recommendations based on the data we have assimilated and also the conclusions have been based on the same.

Contents: Title:

1.

Executive Summary

2. Me Metho thodo dolog logy y a) Sect Sector or and and Pla Playe yers rs  b) Information Sources c) Data Data Coll Collect ection ion Tools Tools d) Limi Limita tati tion onss

3. Company Company Backgrou Background nd 1.

Brief History

2. Year Year of Esta Establ blis ishm hmen entt 3. Turnov Turnover er and and other other finan financia cials ls 4. Prod roduct uct Mi Mix 5. Mark arket Shar Sharee 6. Area Area of oper operat atio ion n

4. Find Finding ings s 5. Data Data Analy Analysis sis 6. Conclu Conclusio sion n 7. Recomme Recommendat ndations ions 8. Anne Annexu xure re 9. Bibliography

Methodology  A Sector & Players The sector that we chose for the project is the  Automobile sector.

We chose this particular sector because the India automobile sector  has seen a tremendous growth rate over the past few years. The investors have gained confidence over the years in the Indian automobile market especially after the process of globalization and reforms in the economy is firmly on track.

 Another  Another reason for choosing choosing this sector was that it covers covers all the 3 aspects i.e. Distribution network, Service network and Sales functioning.

The players (companies) chosen for study are Hyundai Motors and TATA Motors. Both the companies are leaders in the market and both are renowned for making quality cars.

We have done an in depth study of the distribution networks the service networks and the sales functions.

B Information sources Primary sources The primary source of information has been the dealers of both the companies. They have provided us all data of the distribution, sales and a nd after sales network in their capacity c apacity as channel partners of the concerned companies.

Secondary sources

Various sources such as company URLs, Internet, magazines and relevant  journals  journals have have been been used. used. All informatio information n retrieve retrieved d from from such such sources sources has been appropriately classified in the bibliography.

C Data collection tools

The two tools we have used for data collection in this report are: a: Discussion guidelines

b: questionnaires

Samples of both these can be found in the

annexure

D: Limitations

Some information was not provided to us by the company citing it as confidential. Like how much profit margin they keep.

Time constraint

Most interviews with the company sources have been quite short, limiting the information we could gather due to the demands on their time.

Company Background

A) History

Hyundai Motor India Ltd. was established in 1996, and is a subsidiary of the giant South Korean multi national, the Hyundai Motor  Company. It is Korea's top automobile manufacturer, with it sales revenue touching 8.24 billion in 1997. The Santro is steadily capturing the Indian market, and giving a strong competition to its rivals in the same segment. It's success story is an example of a profitable Indian - Korean partnership where Indian skills and workmanship combine with Korean design and technology to produce one of the best cars.

The Hyundai Santro has been designed and developed in India at the integrated integrated auto-manu auto-manufactu facturing ring unit at Irrungattuk Irrungattukotai otai near Chennai. Chennai. This plant is capable of producing 1, 20,000 cars and 1, 30,000 engine and tran transm smis issi sio on syst system ems s annu annual ally ly.. It also also has has in buil builtt faci facililiti ties es for for the the

manufacture of critical components. It is planned to invest another $3 billion in this facility by the year 2011.

The Company has set up more than 70 dealer workshops that are equipped with the latest technology, machinery, and international quality press, body and paint shops, across the country, thereby providing a one-stop shop for a Hyundai customer. customer. Hyundai also has a fleet of 78 emergency road road service cars - specially equipped Santro that can provide emergency service to all its customers anytime, anywhere.

:

TATA Motors Ltd is subsidiary of TATA Sons, the holding company of the TATA Group, the oldest and among the largest industrial conglomerates of  India. Established in 1945, TATA Motors entered into collaboration with Daimler  Benz Benz of Germ German any y in 1954 1954 to manu manufa fact ctur ure e comm commer ercia ciall vehic vehicle les. s. The The collaboration ended in1969. The company until the nineties was a player only in the commercial vehicles segme segment. nt. In the early early ninetie nineties s the compan company y entere entered d the passen passenger ger car  market with the TATA Estate and the Sierra, at the same time the company

reentered into an agreement with Daimler Chrysler for setting up a JV for  Mercedes Benz in India. The tie with Mercedes ended in the mid nineties and the company started investing in the development of an indigenous car for the mass. Named the Indica the car was launched 1998; this car was a totally indigenous product and also the first in the history of the Indian automotive Industry. In between the company also introduced the TATA SUMO in the utility vehicle segment; the product went on to be a big success and became the leader in the segment.  Around  Around the same time the Indica was introduced introduced the company company also introduced the TATA Safari, a SUV which enjoys enormous prestige in the market today.

The most recent product of the company was the sedan TATA Indigo which was based on the Indica platform. This product is a bestseller even after one year of it’s presence in the now extremely competitive Indian automotive industry. The company has also developed numerous concept concept cars such as the TATA  Aria and and the Marina. Marina. The company today exports the Indica to countries across the world and the most notable being the agreement with ROVER U.K for 5,00,000 cars which are today being sold as the City Rover in the U.K.

The Company has spread its manufacturing facilities across India by setting up plants at Jamshedpur, Pune and Lucknow. This is coupled with a nation-wide sales, service and spare parts network. The Company enjoys a significant demand in export markets like Europe,  Australia,  Australia, South South East Asia, Asia, Middle Middle East East and Africa. Africa. The Company's Company's vehicles vehicles are seen in all the continents.

B) Year of Establishment:

Hyundai Motors

1996

India Ltd. TATA Motors

1945

Ltd.

C) Financials:

Particulars

TATA Motors

Hyundai

Turnover*

Rs. 1549 Cr

Rs 2310 Cr  

The turnover for TATA is only for its passenger car unit. * Source: India Info line & India Car (URLs).

D) Product Mix

 All the above cars are a product product of of Hyunda Hyundaii Motors Motors and and are are availab available le in the market.

Indica

Indigo

Safari

Sumo

 All the above cars are a product product of of TATA TATA motors motors and and are are available available in the market.

E) Market Share

TATA

Hyundai

B segment

18%

30%

C segment

17%

15%

MUV & SUV 28%

3%

F) Area of operation

Company

North

East

West

1. TATA motors







2. Hyundai motors 





South





Findings

Distribution structure for Hyundai Motors

Factory/Plant

C&FA

C&FA

Dealers

Dealers

Dealers

Dealers

Dealers

Dealers

Distribution structure of TATA Motors

Factory /Plant

Dealers

Dealers

Dealers

Dealers

Dealers

TATA motors does not have any C&F agents. The cars are delivered to the dealers directly by the company owned transportation facility.

Sales structure of Hyundai

Dealers

MD

President

Executive Director  (Marketing & Sales)

GM (Sales)

Regional Manager 

Regional Manager 

Regional Manager 

Sales Manager 

Sales Manager 

Sales Manager 

Sales Executives (Dealers (dealers))

Sales Executives (Dealers )

Sales Executives (Dealers)

Sales Structure for TATA Motors

Chairman Chairman

PassengerCar  Car  Passenger Business Unit Business Unit

Commercial Commercial Vehicle Division Vehicle Division

Engineering Engineering Research Research centre centre

Business Business Development Development

VP VP

GM GM Sales (cars) Sales (cars)

Regional Regional Manager  Manager  South South

Regional Regional Manager  Manager  West West

DealerAccounts Accounts Dealer Manager  Manager 

Dealers Dealers

Dealers Dealers

Dealers Dealers

DGM DGM Sales (UV) Sales (UV)

Regional Regional Manager  Manager  East East

GM GM Service Service

Regional Regional Manager  Manager   North  North

DGM DGM Dealer development Dealer development & commercial & commercial  planning  planning

Channel Structure for Hyundai Motors India Limited

The distribution system for Hyundai Motors can be broadly divided into two tiers: Tier 1: The cars are shipped from the factory to the dealer direct by the C&FA. There is no warehousing at this level. Tier 2: The cars are transported through train under the RAKE system.

The Hyundai Motors plant is located in Chennai, from where after the dealer  requ reques estt his orde orderr thro throug ugh h the the orde orderr requ reques estt form form.. The The orde orderr is rout routed ed through the regional office to the plant over the company’s ERP system. Once the allotted car is rolled out, it is stored in the car lot which has designated areas for each area. The C&FA agent takes over from there and the cars are loaded in trailers and are transported through road. However  there are two different ways a car is i s shipped to its required destination:

1. The conventional Method 2. RAKE Movement.

1. Conventional Method:

The cars are handed over to the C&FA who transports all the cars to the required destinations. Different C&F agents are contracted for different regions. The C&FA move all the cars from the factory to the dealers by trailers.

2. RAKE Movement:

This system is used for the Key regions, namely Delhi and Mumbai. The Company has constructed a railway terminal within its factory premises where all the cars required for these markets are loaded onto a separate train made possible by a contract with Indian Railways. The C&FA for the market will have his own terminal at the destination where the cars are unloaded and dispatched to the dealers by trucks.

The logic behind this system is that for these key markets, the volume of  cars required are more than other markets, hence if the cars are to be sent by truck, it will lead to a shortage of trucks for the other markets. Also the cost is more viable through such means for such large volumes over long distances. The company pays for all the transportation costs of the cars.

Financial Terms with Channel partners

Within this network the only channel partners are dealers and C&F agents. The C&F agents are selected by the company on the basis of their capacity and ability in transporting the cars and the cost they quote for their services. The dealers on the other hand are selected by the company on the basis of  their ability and willingness to invest, their ability to promote sales and the availability of an appropriate location for the showroom and service centre on their part. The company maintains a sincerity deposit of Rs 2.5 lakhs per dealer. This is to hedge the company’s risks over payment of servicing dues one dealer  owes to another. The other commitment the company expects from the dealer is setting up of a fully fledged service centre and showroom with competent personnel. Since the company does not allow credit on any basis to any dealer for the stock, the dealers are expected to pay for all cars they order for from the company and every dealer is expected to maintain a stock of two to three weeks at any given time of both cars and spares. The required stock is determined on the basis of the territory the dealer represents. For example:

In the north region:  A+ Catego Category ry – Delhi  A Category Category – Ludhiana/ Ludhiana/ NOIDA NOIDA B Category – Kanpur  C Category – Dehra Dun

 All orders orders are made on an order form which is collected collected by the company’s company’s appointed courier agency and the payments are made by the dealers’ banks to the company’s bank ABN AMRO, Chennai through clearing facilities arranged by the company. This is done in order to remove the delay in i n time.

The dealers’ get a return of 3% to 4% per car depending on the model and variant sold. The return the dealers get on servicing depends on the amount payable for servicing where the dealer levies a service charge. The dealers main profits are made on the spare parts they sell. sell.

Sales Targets

The company normally issues targets to all the dealers based on the sales of the corresponding month of the previous year. The target is also assigned depending on the regions classified territory.

Due to the company’s export obligations, wherein the Letter of credit is prepared one month in advance to shipping the cars, the company cannot possibly default on the shipments. Hence, the target is not based on the comp compan any’ y’s s tota totall prod produc uctio tion n but but the the prod produc uctio tion n apar apartt from from the the expo export rt obligations. The production level including exports, for the month once set is divided between domestic and exports and then a certain target is allotted to each region. This target though issued to the dealers, is overseen by the regional r egional sales office.

Order Processing:

Since the plant starts production of a particular parti cular car only when a confirmed order is placed, time is i s an important element.

The company has an ERP system between all the regional offices and the plant and the dealer for making the order form and confirming the order will first have to make the payments for all the cars ordered and then the regional office will make the necessary transaction over the ERP upon confirmation of payment from their bank.

Service Network:

 All the dealers dealers of the company company are equipped equipped with a fully fledged fledged service centre centre;; howeve howeverr the compan company y also has a numbe numberr of author authorized ized service service centers in other places, which are operated by the dealers themselves or by other parties who may not be a dealer.

 All spare parts are stored stored in a warehouse warehouse which which is operated operated by the regional office and all these spare parts are sent from the factory to the service centers through these warehouses.

 At the the time of sale sale the the dealer dealer is entitled entitled to Rs 2500 per car car as servicing servicing charges, however if a car sold by one dealer is serviced by another then

the latter is entitled to reimbursement of the amount. This is done through a reimbursement slip sent to the regional office, which pays it from the loyalty deposit and later charged upon with other payments.

For Example: X Hyundai in Delhi sold a Santro to Mr. Shingla who later serviced his car in Y Hyundai in Kanpur; the servicing charge which X Hyundai had taken from the customer would be reimbursed to Y Hyundai through the regional office. This amount though small, adds up to a lot, for example if a dealer sells 100 cars a month, then he is entitled enti tled to Rs 2, 50,000 on this account only.

Hyundai motors also has a 24hours help line number. This facility is available only in big bi g town at the moment and very less on the highways.

Channel structure for TATA Motors

The distribution network for TATA motors is very simple. There is no C&F age agent invo involv lved ed.. Afte Afterr the the prod produc ucti tion on of the the car car the the cars cars are are dire direct ctly ly transported to the dealers in the different regions. The transport is done through TATA itself.

TATA has its manufacturing units in Jamshedpur, Pune and Lucknow. After  the dealer has placed his order to the company through a request form the cars are allotted to them and loaded in the trailers t railers to be sent off the dealers.

However here also there are 2 methods of shipping the car. 1. Conve Conventio ntional nal method method 2. By train 1. Conventional method the cars are loaded onto the trailers from the factory and transported to different dealers located in the different regions. There are different type of  trailers with capacities to carry 5,7 and 10 cars.

2. By Train It is very rare that the cars are transported through the trains, if so then C&F agents are hired for the job. This transportation is done very rarely and mainly for key regions like li ke Delhi & Mumbai. This transportation is usually done when there is a high demand in the market and the transportation by trailers is not able to meet the high demand of the market.

Financial terms with channel partners

In this network there are no channel partners. The transportation is done through the company itself and most of the trailers are company owned. If  any C&F agent is required then they are chosen on the basis of their  goodwill and their ability to transport at a pre quoted price.

The dealers are chosen by the company on the basis of their capacity to invest, experience, existing line of business and most important of all their  reputation in the market. The dealers’ location also is a major factor for their  selection for a TATA dealership. There is a major misconception that TATA asks for a security deposits from its dealers. TATA motors do not ask for any security deposit from its dealers instead they ask them to take a Working Loan from HDFC bank. This loan amount can vary from dealer to dealer depending on their location. For a small town like Dehra Dun this loan amount is about 2.5 cr. The main purpose of this loan is that the dealers can make the payment of the cars that they take from the company, as the company policy does not have any credit policy. There is also a benefit in taking this loan. If a dealer takes this loan then he is charged interest as low as 8% whereas if he takes a loan

from some other bank he is charged as high as 12% to 13 %. TATA motors have a tie up with wi th HDFC bank exclusively for dealers.

The dealers are expected to keep a stock of two to three weeks at any given point of time for both spares and cars. The stock is determined on the basis of the segment a dealer falls into. i nto. For example

Category A upto 1500 cars per annum * B upto 1200 1200 cars per annum annum C upto 900 cars per annum D upto 600 cars per annum#

* As told to us by the company officials 70% of the dealers fall in the A category # As told to us by company officials only 2% to 3% of its dealers fall in D category.

The dealers get a return of 3% on every car they sell depending upon the variant sold. These days the company offers the dealers various v arious promotional schemes for example.

If a dealer sells five petrol Indicas he can win a trip to Bangkok. They also get sales incentives like on selling a petrol Indica car the dealer gets Rs 1000/-

per

car

and

even

more

on

selling

a

petrol

Safari.

The return the dealers get on servicing depends on the amount payable for  servicing where the dealer levies a service charge. Most of the dealer’s profits are made on selling the spare parts.

Sales Targets

The dealers are normally assigned targets based on their area of operation and their sales based on the corresponding month of the previous month. The sales targets are not only assigned keeping in mind the region but also the festive season and not to forget the financial year. During the festival season the company assigns little higher targets because this time of the year is considered very auspicious and people buy cars in this season. Similarly during Shraad the company assigns low targets to the dealers as the the peo people ple don’t n’t buy buy car cars or any any form form of metal etal durin uring g this this time time.. In the month of March the company expects the dealers to sell high volumes because all the allocation of the budget is done in this month and the company whishes to capitalize on it. Due to TATA’S export obligation the target is not based on the full production capacity of the factories.

Service Network

 All the dealers dealers are equippe equipped d with a fully fledged fledged service service center: center: howeve howeverr the company has about 450+ service networks which include 152 dealers and abou aboutt 300 300 TATA TATA servi service ce cent center ers s and and TATA TATA serv service ice point point.. The The basic basic difference between TATA service center and TATA service point is that a service center can give a guarantee whereas a service point cannot. The service point is not that well equipped and can only handle emergency cases like in a highway.

 All the spare parts are sent to the dealers dealers from the factories factories through through C&F agents. The C&F agents are hired only to deliver the spare parts to the dealers. No C&F agents are involved in other process.

 At the time of of sale the the dealer dealer is entitled entitled to some amount amount per car as servicing servicing charges, however if a car sold by one dealer is serviced by another then the latter is entitled to reimbursement of the amount. This is done through a reimbursement slip.

TATA motors also have a 24 hour helpline no. This facility is only available in big towns like Delhi and Mumbai. It is also available in small towns also but only in a limited area

TATA motors takes good care of its customers by getting a White form a customer satisfaction form and a sales satisfaction form filled fill ed by its customers. This insures the customer they haven’t made a mistake by selecting the car.

FINDINGS AND ANALYSIS OF QUESTIONNAIRES

We questioned two dealers each from Hyundai and from TATA. We found little difference in the distribution system of the two companies.

There are about 134 dealers all over India for Hyundai and about 152 dealers for TATA all over India. Hyundai has 122 service centres all over India and TATA has about 300 service centres and service points.

Dealers

120 100 80 60

Hyundai TATA

40 20 0

This graph represents how many cars a dealer sells in a month . As seen in the graph a Hyundai dealer sells about a bout 120 Santro’s a month whereas a TATA dealer sells about 90 India’s a month.

70 60 50 40

Hyundai

30

TATA

20 10 0

This graph represents the sales sal es of Hyundai Accent and TATA Indigo respectively. As seen in the graph the TATA has a better sale sal e for its Sedan as compared to that of Hyundai.

On comparing both the companies it was found out that Hyundai sells more B segment cars than TATA. But TATA sells more of its Indigo’s as compared to the Hyundai Accent.

4% 4% 3% 3% 2%

Hyundai TATA

2% 1% 1% 0%

This graph represents how much margin a dealer gets in selling a car .  As seen in the graph a Hyundai Hyundai dealer dealer makes makes about 3% to 4% per car they they sell whereas a TATA dealer gets about 3%. There are various other incentives schemes for both the dealers on achieving the sales targets. There is no significance difference in the

How are the cars delivered to the dealers? Both the dealers were asked as to how the cars are delivered to them. They both said that the cars are delivered to them through trailers. In the case of  TATA most of the Trailers are company owned whereas Hyundai hires C&F agents who deliver the car to them through Trailers.

These trailers are of different dif ferent capacities carrying 5, 7 and 10 cars.

Does the company give any Credit policy? Both the dealers were asked if they get a credit policy from the company to which both of them refused saying that the company does not give any credit to them. The cars are dispatched to them only when full payment for  the car is received by the company. TATA has a tie up with HDFC bank which provides Working Loans to the dealers with interest rate as low as 8%.

What kind of a Warranty does the company give for the car? TATA gives a one and a half year warranty to the customer for the car they sell. Additional one and a half year warranty is also available for additional Rs 2700. Hyundai gives a year warranty on each car it sells. There is no additional warranty available.

How many Free Services are given? TATA gives 3 free services for each car it sells whereas Hyundai also gives 3 free services. These free services can be availed only during a set period of time.

How many sales people do you have? Each TATA showroom has about 21 sales people on an average. There are about 15 sales executives, 2 sales managers, 1 receptionist, 1 on Tele marketing, 1 on documentation and at least 2 have to be in the show room at any given point of time.

Each Hyundai showroom has about 20 sales people. There is one GM, 2 area managers, 3 finance executives, 8 sales executives and 6 field agents. Hyundai also has 1 for telemarketing.

How long does it take to service a car? Both Hyundai and TATA take 1 day to service a car. Usually 80% of the cars are booked before servicing and only 20% are taken for emergency. This is almost the case for both the companies.

How do you go about the process of corporate selling? Hyundai has a special incentive scheme for corporate buyers and fleet selling. Special sales presentations are made in front of the corporate buye buyers rs.. Corp Corpo orate rate peo people ple have have to fill fill a form form and and the their nee needs and and requ requir irem emen ents ts are are asse assess ssed ed thro throug ugh h this this form form.. Depe Depend ndin ing g on thei their  r  requirements special incentives are offered to them. These incentives are in the form of discounts. Even TATA has special incentive schemes for their corporate buyers. Like Hyundai they also make special presentations in front of their corporate buyers offering them huge discounts. TATA has at least one or two sales people who specially take care of the corporate selling. selli ng.

Approximately how much do you spend on advertising? It was found out that both the company and the dealers pay for the advertising done by the dealers for both the companies. There is no fixed budget on advertising on the dealer’s behalf but both Hyundai and TATA dealers spend about one to one and a half lakhs per month. This amount is equally divided i.e. 50% the company pays and 50% the dealer pays in TATA but the ratio is different for Hyundai. The company pays about 70% of  the money the dealers spend on advertising. advertisi ng.

Does the company offer any incentives on achieving the sales targets? Both the companies give incentives on achieving the sales targets. Hyundai motors offers incentives in the form of Trade Discounts to its dealers. TATA motors gives holiday packages to the dealers on achieving the sales targets. They also get Trade discounts from the company. There are other incentives also like on selling five petrol Indica’s in a month the dealer gets a holiday package to go to Bangkok and on the sale of each petrol Indica they get Rs 1000 as incentive. i ncentive.

How many cars do you keep in stock? Both the dealers maintain almost equal stock of cars. Hyundai dealers are expected to keep a stock of minimum 2 weeks i.e. if the sell 200 cars in a month then they are expected to keep a stock of at least 25 cars. Even TATA dealers are expected to keep a stock of at least l east 2 to 3 weeks.

Does the dealer perform any other function other than sales? It is mandatory for both the dealers to have a fully equipped service centre for after sales services. servi ces. It was found out from our survey that approximately

20% to 30% of the dealer’s revenues are earned from sales and rest 80% to 70% are earned through service.

CONCLUSION

From our research we have found out that there are about 152 dealers for  TATA and about 134 dealers for Hyundai. Hyundai has one manufacturing unit which is based in Chennai whereas TATA has 3 units, but we also have to keep in mind that TATA also manufactures commercial vehicles like trucks and busses. Tata motors benefits from its widespread dealer network. Being an indigenous company it has a well oiled mechanism for delivering the car to its end customer. It also has large number of service centers spread across the breadth and width of company. the company offers sufficient incentives to motivates its sales force even foreign trips are given as incentives. Tata motors should try to reduce its order processing time as customer  may loose interest if it stretches long. There is a waiting of 10 to 12 days on Indigo; company should take steps to reduce this time. In spite of being a foreign company, Hyundai has a well maintained distribution network and because of this it has a bigger market share in the B segment category but to further increase its strength it can increase its dealerships in the smaller cities and towns. It has one of the best service centers facilities in the industry.

RECOMMENDATIONS

1. Both the com companies ies sho should try to boost up their order  processing time because it takes them about 4 to 7 days to deliver a car. The customer loses out interest in that particular  vehicle and opts for a vehicle, which he can take in a day’s time.

2. Hyunda Hyundaii motors motors need to set up more more service service centres centres all over  the country. The demand for their vehicle is high these days and is good for them to set a few more service centres for their  customers.

3. Hyundai Hyundai should should concentra concentrate te on after after sales sales services. services. They need need to send frequent reminders to the customer reminding them to get their cars serviced. This can be done by posting a letter or  giving the customer a call.

4. Compared Compared to Tata, there there are a few dealers dealers of Hyundai in in allover  allover 

coun countr try. y. Keep Keepin ing g in mind mind the the fact fact that that,, Hyun Hyunda daii Sant Santro ro has has emerged a serious competitor for the small segment car, Hyundai

should definitely increase the number of dealers in the country in order to face competition given by Tata Indica.

5. Usually Usually the dealer dealers s buy cars from the compan company y even befor before e they get orders from the customers and then they are free to sell to the customers. So in a way there is no direct relation between the customers and the company but we think that there has to be some sort of direct relationship between the two.

6. In case of both the companies (i.e.-Tata & Hyundai) each sales executive is given a target. If the target is met the employees gets commission but in case of Tata, the company gives special offers like international trips to executive with superior  performance. This type of policy should also be adopted by Hyundai for a better and an efficient work force in the future.

 Annexure

Discussion Discussion guidelines

Distribution

1. What is the channel channel structur structure e used used by your your company? company? 2. What are the function functions s performed performed by the different different channel channel members members? ? 3. At present present how how many dealers dealers does does the company company have? have? 4. What is the the minimum minimum investm investment ent require required d for a dealership dealership? ? 5. What is the minimu minimum m commitm commitment ent of a dealer? dealer? 6. What What is the the return return per per car car sold? sold? 7. How is the logistics logis tics managed?

Sales 1. What is the sales sales structu structure re of your organiz organization? ation? 2. How do do you determ determine ine the the targets targets for each each territory territory? ? 3. Who is responsib responsible le for for assigning assigning targets? targets?

4. Who is respons responsible ible for for achieving achieving the sales target targets? s?

Service 1. How long does it take for a car car to get get serviced? serviced? 2. What is the compan company y system system for overseeing overseeing the the after sales sales function? function? 3. How are the serv service ice reco recorde rded? d? 4. How are authoris authorised ed service service cente centers rs handled handled? ? 5. Are there there any incentiv incentives es for for service network? network?

QUESTIONNAIRES QUESTIONNAIRES FOR THE DEALERS

1.

How many cars do you sell in a month? ………………………………………………………… ………………………………………………………… …………………………………………………………

2.

How do you determine your sales mix? ………………………………………………………… ………………………………………………………… …………………………………………………………

3.

How much return do you get per car sold? ………………………………………………………… ………………………………………………………… …………………………………………………………

4.

How are the cars delivered to you? ………………………………………………………… ………………………………………………………… …………………………………………………………

5.

How many sales people go you have? ………………………………………………………… ………………………………………………………… …………………………………………………………

6.

Does the company give ive you any any cre credit polic licy? ………………………………………………………… ………………………………………………………… …………………………………………………………

7.

What is the action of the complaints? ………………………………………………………… ………………………………………………………… …………………………………………………………

8.

What is the ne network fo for th the su supply of sp spares pa parts? ………………………………………………………… ………………………………………………………… …………………………………………………………

9.

How do you you go abo about the the proc proce ess of cor corpor porate ate sell sellin ing? g? ………………………………………………………… ………………………………………………………… …………………………………………………………

10.Does the company offer any incentives on achieving the sales targets? ………………………………………………………… ………………………………………………………… …………………………………………………………

11.Usually how long does it take to service a car? ………………………………………………………… ………………………………………………………… …………………………………………………………

12.How long does it take to deliver the car to the customer? ………………………………………………………… ………………………………………………………… …………………………………………………………

13. What kind of a warranty does the company give for  a car? ………………………………………………………… ………………………………………………………… …………………………………………………………

14. How many free services does the company give for a car? ………………………………………………………… ………………………………………………………… …………………………………………………………

15. Approximately how much do you spend on advertising? ………………………………………………………… ………………………………………………………… …………………………………………………………

BIBLIOGRAPHY

The

entire project is the result of our sincere effort. We have taken

the help of library, referring to different books and how can we forget the net.

1.

The library visited :-

 A) IIPM, IIPM, library library B) Briti British sh libr librar ary y

2. Book Books s Referr Referred ed :-

a) Marketing Marketing Managem Management ent by Philip Philip Kolter  Kolter  b) Sales Manage Management ment by by Richard R.Still, R.Still, Edward Edward W.Cundiff W.Cundiff,, Norman A.P. Govoni

3. Web Website sites s :-

a) www. www. Goo Google gle.c .com om b) www. www. Indi India a Infol Infoline. ine.Com Com c) www. www.Au Auto toIn Indi dia. a.Co Com m d) www.C www.CarS arStre treet. et.com com e) www.O www.Over verDri Drive. ve.Co Com m